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HomeMy WebLinkAbout4.04 DHA CDBG Roof a• CITY CLERK File # () 0 - 4Q AGENDA STATEMENT CITY COUNCIL MEETING DATE: August 17, 1999 SUBJECT: Contract with the Dublin Housing Authority for Administering the Community Development Block Grant (CDBG) Fund Expenditures for the Arroyo Vista Roof Repair Project �G (Report Prepared by Carol R. Cirelli, Senior Planner) ATTACHMENTS: 1. Contract with the Dublin Housing Authority RECOMMENDATION: Authorize the Mayor to sign the contract with the Dublin Housing Authority for administering CDBG fund expenditures for Fiscal year 1999-2000. FINANCIAL STATEMENT: (See discussion below) DESCRIPTION: In April of 1999, the City of Dublin, as an Urban County City, entered into an agreement with the Alameda County Housing and Community Development Department (HCD) for administering CDBG funds for the Fiscal year 1999-2000. The total amount of CDBG funds allocated to Dublin for this program year is $ 87,148. The City Council approved the following Jurisdiction Improvement projects for funding under the City's Fy 1999/2000 CDBG allocation: Dublin Housing Authority - Roof Repair ($ 34,400); Handicap Sidewalk Ramps ($ 14,904); Audible Pedestrian Signals ($ 2,500); Senior Center Handicap Lift ($ 9,400); and the Swim Center Handicap Lift ($ 3,854). The City must now enter into a contract with the one outside agency (Dublin Housing Authority) for purposes of administering the CDBG funds related to the Arroyo Vista roof repair project. The contract describes the conditions under which the CDBG funds may be expended. Staff recommends that the City Council execute a contract with the Dublin Housing Authority for purposes of administering the CDBG fund expenditures for Fy 1999/2000. COPIES TO: In-House Distribution ITEM NO. a g:\cdbg\stfrpts\S-99 ccsr contract . AGREEMENT BY AND BETWEEN DUBLIN HOUSING AUTHORITY AND THE CITY OF DUBLIN THIS AGREEMENT is made and entered into this 17 fit day of A tn3 u s f , 199?, by and between the City of Dublin, a body corporate and politic of the State of California, (hereinafter referred to as "City"), and Dublin Housing Authority , (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,AS, City desires that such duties and services be provided by Contractor, and Conti actor 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: STATEMENT OF WORK A. Attached hereto, marked Exhibit A, and by this reference made a part hereof, is a description of the duties and services to be performed for City by Contractor, and Contractor agrees to comply with all provisions, to perform all work, and to provide all such duties and services set forth in Exhibit A in a professional and diligent manner. B. City has allocated the sum of 534,400.00 to be expended as described in this contract. Unless an • amendment to this contract otherwise provides, that amount shall in no event be exceeded by Contractor, and City shall under no circpmstances be required to pay in excess of that amount. Payment shall be made pursuant to the terms and conditions set forth in Exhibit B, attached hereto and by this reference made a pan hereof. Sums not so paid shall be retained by the City. II. COMMENCEMENT AND COMPLETION REQUIREMENTS A. The term of this Agreement begins on July 1, 1999 , and ends on June 30, 2000 , or when all contract terms have been completed. 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. Tne 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. 44 , r. I 1 • • E. Upon completion of performance under this Agreement and a determination of final costs. Coy v: shall submit to the City a certificate of completion for construction projects and a requisition i°r. . a payment for service projects, unless otherwise provided in this Agreement. III. INSURANCE A. Contractor shall maintain, at all times during the term of this contract, the insurance and bonding documentation described in Exhibit C to this contract, and shall comply with all other requirements set forth in that Exhibit. B. Contractor shall indemnify City, its officers and employees, against any and all liability for injury or damage caused by any act or omission of Contractor or any of Contractor's employees or volunteers in the performance of this contract, and Contractor shall hold City harmless from any and all loss occasioned in the performance of, or otherwise arising out of, this contract. IV. SUBCONTRACTS A. Any subcontract funding under this Agreement shall be submitted by Contractor 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 (OMB) Circular A-110 and A-122 (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 or .finis Agreement. V. BUDGET • The work performed hereunder shall not exceed the Program Budget (Exhibit A, hereto). 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. VI. RECORDS AND REPORTS - A. All original documents prepared by Conti actor 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 subcontsacts and expenditures, and all other financial and properry records in conformance with OMB circular A-110. C. Records must be kept accurate and up-to-date: Failure of Contractor to comply with this provi, could result in termination of this Agreement or Contractor's repayment of funds previously awarded under this Agreement. VII. PROGRAM MONITORING AND EVALUATION A. Contractor shall be monitored by City 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 duties and 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. b. Service area (i.e., citywide, etc., including applicable census tracts). 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 quarterly report shall be due on the fifteenth day of the month immediately foIlowin_ the report quarter, except for the end of the program year report which is due within thirty days. The City shall hold payment of all project invoices until quarterly reports are received. C. Tne 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 information 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. VIII. UNIFORM ADMINISTRATIVE REQUIREMENTS Contractor shall comply with Uniform Administrative Requirements as described in Federal Regulations, Section 570.502 as applicable to governmental entities. IX. RELIGIOUS ACTIVITY PROHIBITION There shall be no religious worship, instruction, or proselytization as part of, or in connection with the performance of this Agreement. 3 • X. OTHER PROGRAM REQUIREMENTS A. Contractor certifies that it will carry out each activity in compliance with all Federal lay?, ;.d 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 1) Displacement. B. Contractor agrees to comply with the requirements of the Section 3 Plan, attached hereto as Exhibit D. C. Contractor agrees to comply with the requirements of the attached Exhibit E (Property Management Standards). XI. TERMINATJON OF THIS AGREEMENT City may terminate this Agreement in whole or in part immediately for cause, which shall include as example but not as a Iimitation: 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 * * * * * * * * * * * * * C_____ INTRACTOR:DUBLIN HOUSING AUTHORITY CITY OF DUBLIN By: Stanati�e of Contractor _ Ophelia B` Basgal, Executive Di ` or Taxpayer ID: 94-3021340 Attest: City Clerk Date: / 0 I G G I t , Date: 4 EXHIBIT A WORK PROGRAM BETWEEN THE CITY OF DUBLIN AND DUBLIN HOUSING AUTHORITY 7-1-99 THROUGH 6-30-2000 Project Description The proposed project is to re-roof approximately 7 buildings at the Arroyo Vista complex including repairing any dry rot to the roof decking, fascia or rafter ties, and repaint the trim. Remove or prune back any overhanging trees. The exterior appearance of the complex will be improved, and employment opportunities for public housing residents will be provided through Section 3 requirements in construction contracts. Work Program 1. Hire a roofing consultant to review specifications and contracts and conduct inspections. 2. Hire a tree trimmer to remove or prune trees. 3. Advertise for bids. 4. Evaluate bids. 5. Award contract. 6. Oversee roof repairs through completion. 7. Paint fascia and trim. PROGRAM BUDGET (Exhibit A) DUBLIN HOUSING AUTHORITY 7-1-99 THROUGH 6-30-00 Line Item Total 1. Construction/Engineering/Landscape Contracts $34,400.00 • GRAND TOTAL $34,400.00 6 EXHIBIT B CONDITIONS FOR PAYMENT BETWEEN CITY OF DUBLIN 1, AND . DUBLIN HOUSING AUTHORITY 1. CLIENT CONFIDENTIAL INFORMATION: City shall be allowed to review case work history information. The propose of the City's review is to see randomly selected client information to determine the adequacy of record keeping and quality of services performed. 2. BILINGUAL ASSISTANCE Contractor will provide bilingual professional staff as needed to serve its clients. 3. METHOD OF PAYMENT This Attachment sets forth the terms and conditions by which payment will be made by the City to the Contractor for expenses incurred pursuant to the duties and services Iisted in Exhibit A of this contract. Payment to the Contractor shall be made on a reimbursement basis. The Contractor shall seek reimbursement from the City after expenses have already been incurred. All requests for reimbursement will be in a format approved by the City and shall be submined to the City on a monthly basis with supporting documentation of actual 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 AICPA 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 expenditure of matching funds on the City of Dublin contract. 4. REQUESTS FOR ADJUSTMENTS TO BUDGET LINE ITEMS Once the Iine item budget has been approved through the execution of this contract, there can be no more than four (4) requests for adjustments to budget line item amounts during the contract period, including any final adjustments done at the end of the program year, June 30, 2000 . S. COMPLIANCE WITH FEDERAL REGULATIONS Contractor's administrative procedures must be in compliance with the following regulations: A. OMB Circular A-122, Cost Principles for Non-Profit Organi7ations. B. OMB Circular A-110, Uniform Administrative Requirements for Grant and Other Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations. C. Paragraph (b) of Section 570.502 of sub-part 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 with State and Local Governments. EXHIBIT C 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 Contractor's bid. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: (1) Insurance Services Office form number GL 0002 (Ed.1/73) covering comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial 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: £1,000,000 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 project/loc.- or the general aggregate limit shall be twice the required occurrence limit. (2) Automobile Liability: 51,000,000 combined single Iimit 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 Iimits of 51,000,000 per accident. c. Deductibles and Self-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 conrain, or be endorsed to contain, the following 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 conrain no special limitations on the scope of the protection afforded to the City, its officers, officials, employees or volunteers. (b) Tile Contractor's insurance coverage shall be primary insurance as respects the officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. (c) Any failure to comply with reporting 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. The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from work performed 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 part 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 parry, reduced in coverage or in Iimits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. e. Acceptability of Insurers. Insurance is to be placed with insurers with a Bests' rating of no less than A:VII. f. Verification of Coverage. Contractor shall furnish City with certificates of insurance and with original endorsements effecting coverage required by this clause. The certificates 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. 9 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 financed by the Alameda County Housing and Community Development 1 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: 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 opportunities 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, particularly persons who are recipients of HUD assistance for housing. 2. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which implement section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 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 the notice. The notice shall describe the section 3 preference, availability of apprenticeship and training positions, t • 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 finding that the subcontractor is in violation of the regulations in 24 CFR part 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 part 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 part 135 require employment opportunities 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 future 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 opportunities 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). 10 SECTION 3 EMPLOYMENT PLAN NAME OF CONTRACTOR: DUBLIN HOUSING AUTHORITY Services to be Provided: Re-roofing of damaged roofs including dry rot repair and repaiting roof trim. Work will involve design and engineering and actual construction work. Trees will be pruned or removed. Fascia and trim will be painted. Contract Amount: S 34,400.00 Contract amount does not exceed Section 3 dollar threshold. Section 3 X 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 do 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 Existing Work Force Anticipated New Hires All work will be subcontracted. We will have a roofing consultant to assist with specifications and inspections. A roofing company will be contracted with for repair work, a tree trimming company will prune or remove trees and a painting company to paint roofing trim. 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. Contractor Nime aricitle Opheli` B_ iBasgal, Executive Director C\ Date l 11 • EXHIBIT E PROPERTY MANAGEMENT STANDARDS 1. This attachment 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. • . The following definitions apply for the purpose of this attachment: a. Real property. Real property means land, land improvements, 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. Nonexpendable personal property. Nonexpendable personal property means tangible personal property having a useful Iife of more than one year and an acquisition cost of 5300 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 defined above. . d. Expendable personal property. Expendable personal property refers to all tangible personal property other than nonexpendable property. e. Excess property. 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. 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 statute, 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. When 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 participation in the total cost of the grant program for which the property was acquired to the current fair market value of the property. 12 • 4. 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: a. Nonexpendable personal property acquired with Federal funds. R'hen 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 property 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 acouisition cost of less than 5500 and used four Years or more. The grantee may use the property for its own ofricial'activities without reimbursement to the Federal Government or sell the property and retain the proceeds. (b) All other nonexpendable proper['. The grantee may retain the property for its own use provided that a fair compensation is made to 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) Nonexpendable nroperi with an acouisition cost of 51.000 or less. 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. (b) Nonexnendable property with an acouisition cost of over 51.000. 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. If 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 13 to the grantee within 120 days and the following procedures shall govern: (i) If the grantee is instructed to ship the property elsewhere, the grantee shall be reimbursed by the benefiting Federal agency with an amount which is computed by applying 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) If disposition instructions are not issued within 120 days after reporting, 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 _rant program to the sales proceeds. Further, the grantee shall be permitted 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 cost of 51,000 or more and financed 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. If 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. Federally-owned nonexpendable personal DroDerrv. 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) remaire vested by law in the Federal Government. Upon termination of the grant or need for the property, such property shall be reported to the grantor agency for further agency utilization or, if appropriate, for reporting to the General Services Administration for other Federal agency utilization. Appropriate disposition instructions will be issued to the grantee after completion of Federal agency review. 5. The grantees' property management standards for nonexpendable personal property shall also include the following 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 14 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 existence, 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, processes, or inventions, in the course of work aided by a Federal grant, such fact shall be promptly and fully reported 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. (G:lcdbg/cdbecntr) 15