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HomeMy WebLinkAboutResolution - 2002-R0339 - Contract For Opperating Assistance - 08/29/2002Resolution No. 2002-RO339 August 29, 2002 Item No. 38 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Contract No. 51305F- 1017 for operating assistance, by and between the City of Lubbock and Texas Department of Transportation (TxDOT), and related documents. Said Contract is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this 29th ATTEST: Rebecca Garza, City Secretary APPROVED AS TO CONTENT: Richard Burdine Assistant City Manager APPROVED AS TO FORM: William de Haas Contract Manager/Attorney gs/ccdocs/Contract-TxDOT Operating Assistance August 6, 2002 day of August , 2002. Resolution No. 2002—RO339 August 29, 2002 Item No. 38 RECIPIENT: City of Lubbock STATE/LOCAL PUBLIC TRANSPORTATION GRANT AGREEMENT GRANT AGREEMENT NO.: 51305F1017 STATE PROJECT NO. URB 0301(05) City of Lubbock STATE/LOCAL URBAN PUBLIC TRANSPORTATION GRANT AGREEMENT THE STATE OF TEXAS § THE COUNTY OF TRAVIS § THIS GRANT AGREEMENT is made by and between the State of Texas, acting through the Texas Department of Transportation, hereinafter called the "State," and City of Lubbock, hereinafter called the 'Recipient." WITNESSETH WHEREAS, Transportation Code, Chapter 455, authorizes the State to assist the Recipient in procuring aid for the purpose of establishing and maintaining public and mass transportation projects and to administer funds appropriated for public transportation under Transportation Code, Chapter 456; and, WHEREAS, the Recipient, as a 49 U.S.C. Section 5307 urban provider, submitted an application for state financial assistance to be used to provide transportation services as described in Attachment A; and, WHEREAS, the Texas Transportation Commission has approved the request by Minute Order Number 108566; NOW, THEREFORE, in consideration of the premises and of the mutual covenants hereinafter set forth, the State and the Recipient hereto agree as follows. AGREE-MENT ARTICLE 1. GRANT PERIOD This grant agreement becomes effective when fully executed by both parties, or on September 1, 2002, whichever is later. This grant agreement shall terminate on August 31, 2003, unless terminated or otherwise modified as hereinafter provided. ARTICLE 2. PROJECT DESCRIPTION A. The Recipient shall commence, carry out and complete the public transportation project described in Attachment A, Approved Project Description, with all practicable dispatch, in a sound, economical and efficient manner. The Recipient shall carryout the public transportation project described in Attachment A, Approved Project Description in accordance with the provisions of the Project Description, this grant agreement, federal and state law, and federal and state regulations. B. If applicable, the Recipient shall begin competitive procurement procedures no later than thirty (30) days after the effective date of this grant agreement for the purchase of the approved line item(s) referenced in Attachment B, Approved Project Budget. No later than sixty (60) days after the issuance of public notification, the Recipient shall publicly open all bids. The Recipient shall issue a purchase order no later than thirty (30) days after the opening of an acceptable bid. The Recipient shall notify the department in writing when it is necessary to exceed these deadlines. ARTICLE 3. COMPENSATION A. The maximum amount payable under this grant agreement without modification is $1,229,354.00 provided that expenditures are made in accordance with the amounts and for the purposes authorized in Attachment A, Approved Project Description and Attachment B, Approved Project Budget. B. The State's reimbursement to the Recipient is contingent upon the availability of appropriated funds. The State shall have no liability for any claims submitted by the Recipient or its subcontractors, vendors, manufacturers or suppliers if sufficient federal or state funds are not available to pay the Recipient's claims. C. To be eligible for reimbursement under this grant agreement, a cost must be incurred within the grant agreement period specified in Article 1, Grant Period, and be authorized in Attachment A, Approved Project Description and Attachment B, Approved Project Budget. - D. The Recipient must submit requests for reimbursement to the State no more frequently than monthly and no later than forty-five (45) days after the date of the invoices submitted for reimbursement. The Recipient will use invoice statements acceptable to the State. Additional documentation to support any cost incurred during the billing period may be required at the discretion of the State. As a minimum, each billing must be accompanied by a summary by budget line item which indicates the total amount authorized for each line item, previous expenditures, current period expenditures and the balance remaining in the line item. E. The original and one copy of the invoice is to be submitted to the following address: Carl Utley, PE District Engineer Texas Department of Transportation P.O. Box 771 Lubbock, Texas 79408-0771 F. The State will make payment within thirty (30) days of the receipt of properly prepared requests for reimbursement. G. The Recipient will submit a final billing within forty-five (45) days of the completion or termination of the grant agreement in accordance with Article 1, Grant Period. H. The Recipient shall pay all subcontractors for work performed within ten (10) days after the Recipient receives payment for the work performed by the subcontractor. Also, any retained monies on a subcontractor's work shall be paid to the subcontractor within ten (10) days after the Recipient receives any retainage payment. The State shall not be responsible for the debts of the Recipient. The above requirements are also applicable to all sub -tier subcontractors and the above provisions shall be made a part of all subcontracts. Failure to comply with any of the above requirements may cause withholding of payments to the Recipient and will be grounds for termination of this grant agreement by the State. ARTICLE 4. AMENDMENTS A. Except as noted below, changes in the scope, objectives, cost or duration of the project authorized herein shall be enacted by written amendment approved by the parties hereto before additional work may be performed or additional costs incurred. Any amendment so approved must be executed by both parties within the grant period specified in Article 1, Grant Period. The Recipient is authorized to re -budget without a formal amendment when the proposed revision involves an increase in one category and a corresponding decrease in another, provided however, that any such revision meets all of the following criteria: 1. Does not result in the need for additional funds; and, 2. Does not exceed ten percent of the current total approved budget and the federal or state funding exceeds $100,000; and, 3. Does not involve a transfer of funds from an authorized capital equipment purchase to another category; and, 4. Does not involve a transfer of funds from training to another expense category; and, 5. Does not involve a transfer of funds from construction to a non -construction category; and, 6. Does not involve a transfer of funds from a direct to indirect cost category. C. If a proposed revision meets all of the criteria listed above, the Recipient must notify the State in writing before the revision is made, describing the revision, explaining the need, and certifying that it complies with the above criteria. ARTICLE 5. SUBCONTRACTS The Recipient shall not enter into any subcontract with individuals or organizations for the purchase of equipment and/or to provide professional services without prior authorization and consent to the subcontract by the State. Subcontracts in excess of $25,000 shall contain all required provisions required by state or federal law. Recipients shall furnish the department notice of the intent to award a purchase order or contract to any individuals or organizations not a part of the Recipient's organization when the amount of the purchase. meets or exceeds the threshold level in the Government Code or Local Government Code (or $15,000 for those entities not covered by the Government Code or Local Government Code) requiring formal competitive procurement. Purchases shall not be split out to stay below the threshold amount. No subcontract will relieve the Recipient of its responsibility under this grant agreement. ARTICLE 6. AUDIT REQUIREMENTS Recipient audit procedures shall meet or exceed the audit requirements outlined in applicable Federal Office of Management and Budget (OMB) publications as follows: OMB Circular A-21, Cost Principles for Educational Institutions OMB Circular A-87, Cost Principles for State and Local Governments OMB Circular A-122, Cost Principles for Nonprofit Organizations OMB Circular A-133, Audits of States, Local Governments and Non -Profit Organizations ARTICLE 7. PROCUREMENT STANDARDS Recipient procurement standards shall meet or exceed the requirements of 49 C.F.R. §18.36 including standards for competitive procurements; methods of procurement; contracting with small and minority firms, women's business enterprise and labor surplus area firms; contract cost and price; awarding agency review; insurance and bonding. The Recipient's procurement system must include but not be limited to the following procurement standards. Procurement procedures which reflect applicable state and local laws and regulations , provided that the procurements conform to applicable federal law and the standards identified in this section. A. A contract administration system which ensures that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. B. A written code of standards of conduct governing the performance of employees engaged in the award and administration of contracts. No employee, officer, or agency of the Recipient shall participate in selection or in the award or administration of a contract supported by state or federal funds if a conflict of interest, real or apparent, would be involved. A process for review of proposed procurements to avoid purchase of unnecessary or duplicative items. C. Use of state and local intergovernmental agreements for procurement or use of common goods and services to foster greater economy and efficiency. D. Use of value engineering clauses in contracts for construction projects. E. Awards made only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement, giving consideration to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical. resources. F. Records sufficient to detail the significant history of procurement, including rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. G. Limited use of time -and -materials contracts. H. Use of good administrative practices and sound business judgment to settle contractual and administrative issues arising out of procurements. I. Protest procedures to handle and resolve disputes relating to procurements and prompt disclosure to the State of information regarding the protest. J. Procurement transactions conducted in a manner that provides full and open competition. K. These standards will only apply to the project described in Attachment A, Approved Project Description. Upon procurement of items under this grant agreement, the Recipient shall submit to the State a list of all bidders and subcontractors that quoted on the procured items. The Recipient shall submit the list with their requests for reimbursements and must include names, addresses, telephone numbers, and type(s) of work quoted. ARTICLE 8. PROPERTY MANAGEMENT The State must concur in the award of all purchase orders for non -expendable personal property as defined in 49 C.F.R. Section 18.31. ARTICLE 9. EQUIPMENT MANAGEMENT A. Management standards include, but are not limited to: 1. Maintain equipment records that include a description of the equipment; a serial number or other identification number; the source of equipment; who holds title; the acquisition date and cost of the equipment; percentage of federal and state participation in the cost of the equipment; the location, use and condition of the equipment; maintenance history for each vehicle; and ultimate disposition data including the date of disposal and sale price. 2. Conduct a physical inventory of the equipment at least once every two (2) years and reconcile the in with equipment records described in the preceding paragraph. 3. Develop a control system to ensure adequate safeguards to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft shall be investigated. 4. Develop and follow procedures to keep the equipment maintained and in good condition. At a minimum, the Recipient shall follow the vehicle maintenance schedule recommended by the manufacturer, showing the date the maintenance was performed. Maintenance records shall be provided to the State upon request. 5. Request disposition instructions from the State, and if authorized to sell the equipment, use proper sales procedures to insure the highest possible return. 6. The Recipient will comply with Title 43, Texas Administrative Code §31.53, to protect the public investment in real property and equipment purchased in whole or in part with state or federal funds. In the event that project equipment is not used in the proper manner or is withdrawn from public transportation services, the Recipient shall immediately notify the State. The State reserves the right to direct the sale or transfer of property acquired under this grant agreement upon determination by the State that said property has not been fully or properly used. B. All vehicles purchased under this grant agreement shall comply with the Motor Vehicle Safety Standards established by the US Department of Transportation. C. Irrespective of coverage by insurance, unless otherwise approved in writing by the State, in the event of loss or damage to project property, whether by casualty or fire, the fair market value will be the value of the property immediately before the casualty or fire. D. The Recipient shall notify the State immediately of theft, wreck, vandalism or other destruction of project -related facilities or equipment. ARTICLE 10. COORDINATION According to Title 43 of the Texas Administrative Code §31.49, the Recipient will at all times coordinate the provision of public transportation services with other transportation operators, both public and private, in the area. The Recipient will furnish the State copies of any agreement resulting from such coordination. Agreements that authorize the payment of project funds to another entity are subject to the approval requirements described in Article 5, Subcontracts. ARTICLE 11. LABOR PROTECTION PROVISIONS If applicable, the Recipient shall comply with the labor protection provisions as listed below. The Recipient agrees that the following terms and conditions shall apply for the protection of employees in the mass passenger transportation industry in the area of the project: A. The project shall be carried out in such a manner and upon such terms and conditions as will not adversely affect employees in the mass passenger transportation industry within the service area of the project. B. All rights, privileges, and benefits (including pension rights and benefits) of employees (including employees already retired) shall be preserved and continued. C. The Recipient shall be financially responsible for any deprivation of employment or other worsening of employment position as a result of the project. D. In the event an employee is terminated or laid off as a result of the project, he or she shall be granted priority of employment or reemployment to fill any vacant position for which he or she is, or by training or retraining can become, qualified. In the event training is required by such employment or reemployment, the Recipient shall provide or provide for such training or retraining at no cost to the employee. E. Any employee who is laid off or otherwise deprived of employment or placed in a worse position with respect to compensation, hours, working conditions, fringe benefits, or rights and privileges pertaining thereto at any time during his or her employment as a result of the project, including any program of efficiencies or economies directly or indirectly related thereto, shall be entitled to receive any applicable rights, privileges and benefits as specified in the employee protective arrangement certified by the Secretary of Labor under Section 405(b) of the Rail Passenger Service Act of 1970 on April 16, 1971. An employee shall not be regarded as deprived of employment or placed in a worse position with respect to compensation, etc., in case of his or her resignation, death, retirement, dismissal for cause, or failure to work due to disability or discipline. The phrase "as a result of the project" as used herein shall include events occurring in anticipation of, during, and subsequent to the project. F. In the event any provision of these conditions is held to the invalid or otherwise unenforceable, the Recipient, the employees and/or their representatives may invoke the jurisdiction of the Secretary of Labor to determine substitute fair and equitable employee protective arrangements which shall be incorporated in these conditions. The Recipient agrees that any controversy respecting the project's effects upon employees, the interpretation or application of these conditions and the disposition of any claim arising hereunder may be submitted by any party to the dispute including the employees or their representative for determination by the Secretary of Labor, whose decision shall be final. G. The Recipient shall maintain and keep on file all relevant books and records in sufficient detail as to provide the basic information necessary to the making of the decisions called for in the preceding paragraph. H. The Recipient will post, in a prominent and accessible place, a notice stating that the Recipient is a recipient of Federal assistance under the Federal Transit Act and has agreed to comply with the provisions of 49 U.S.C., Section 5333(b). The notice shall also specify the terms and conditions set forth herein for the protection of employees. ARTICLE 12. MONITORING A. The State will monitor the progress of the project authorized in this agreement using appropriate and necessary inspections, including but not limited to periodic reports, physical inspection of project facilities, telephone conversations, letters, and conferences. B. The State shall monitor and conduct fiscal and/or program audits of the Recipient and its contractors to verify the extent of services provided under the terms of the grant agreement. Representatives of the State or Federal government shall have access to project facilities and records at all reasonable times. ARTICLE 13. REPORTS A. The Recipient shall submit written or electronic reports at intervals and in a format prescribed by the State. 1. Quarterly Operating Report - No later than thirty (30) days after the end of the quarter, for which the report is made, the Recipient shall submit an activity report to the State. At a minimum, the quarterly operating report will include the number of vehicles in operation; total unlinked passenger trips; total miles traveled; total expenses, including administrative and operating expenses; revenue, including fares and donations, operating cost per vehicle mile; operating cost per passenger trip; and number of passengers per mile traveled. The State may require more frequent operating reports for reasons of its own, or if the Recipient does not provide the reports in a timely manner or if the reports indicate unfavorable trends. 2. Status of Procurements - If the grant includes the purchase of vehicles or other capital equipment, the Recipient shall submit a quarterly report consisting of a brief narrative including but not limited to procurement milestones, including date of purchase order, vendor name and location, and estimated delivery date. 3. Status of Construction - If the grant includes construction, the Recipient shall submit quarterly narrative reports which include but are not limited to the progress of construction. B. Regardless of the type of assistance included in the grant, the Recipient shall promptly advise the State in writing if at any time the progress of the project will be negatively or positively impacted, including: 1. Problems, delays or adverse conditions that will materially affect the Recipient's ability to attain program objectives, prevent the meeting of time schedules and goals, or preclude the attainment of project work units by established time periods. This disclosure -shall be accompanied by a statement of the action taken, or contemplated, by the Recipient and any State assistance needed to resolve the situation. 2. Favorable developments or events that will enable the Recipient to meet time schedules and goals sooner than anticipated or produce more work units than originally projected. Every two (2) years, or more frequently when instructed by the State, the Recipient shall conduct a physical inventory of grant -supported property as set forth in Article 9, Equipment Management, and furnish the State a copy of the inventory. C. The Recipient shall develop performance goals and management objectives in accordance with Title 43, Texas Administrative Code §31.36. D. The Recipient shall maintain written maintenance records for each grant -supported vehicle, and shall make such records available to the State upon request. As a minimum, the Recipient shall comply with the manufacturer's recommended maintenance schedule. ARTICLE 14. DISPUTES AND REMEDIES A. The Recipient shall be responsible for the settlement of all contractual and administrative issues arising out of procurements entered in support of the grant. B. Any dispute concerning the work hereunder, additional costs, or any other non -procurement issue shall be submitted for resolution by informal mediation, in accordance with the requirements of the Governmental Dispute Resolution Act, Chapter 2009, Government Code, unless the subject matter applies under Title 43, Texas Administrative Code §9.2. C. This agreement shall not be considered as specifying the exclusive remedy for any default, but all remedies existing at law and in equity may be availed of by either party and shall be cumulative. ARTICLE 15. TERMINATION A. The State may terminate this grant agreement at any time before the date of completion whenever it is determined that the Recipient has failed to comply with the conditions of the grant agreement. The State shall give written notice to the Recipient at least thirty (30) days prior to the effective date of termination and specify the effective date of termination, the reason for the termination, and other termination instructions. Additionally, if the State notifies the Recipient of a major deficiency and the Recipient does not respond in the manner required by the State, the State will, within ten (10) working days, exercise its contract termination rights, direct the disposition of equipment purchased with grant funds, or both. B. If both parties to this grant agreement agree that the continuation of the grant would not produce beneficial results commensurate with the further expenditure of funds, the parties shall agree upon the termination conditions, including the effective date. In the event that both parties agree that resumption of the grant is warranted, a new grant agreement must be developed and executed by both parties. C. Either the State or the Recipient may terminate this agreement by giving notice in writing one to the other for reasons of its own and not subject to the approval of the other party. In the event of termination for convenience, neither the State nor the Recipient shall_ be subject to additional liability except as otherwise provided in this agreement. D. Upon termination of this grant agreement, whether for cause or at the convenience of the parties hereto, title to all property and equipment remains with the Recipient subject to the obligations and conditions set forth in this grant agreement and 49 C.F.R. 18.31 and 18.32, unless the state or federal funding agency issue disposition instructions to the contrary. E. In the event of termination, the State may compensate the Recipient for those eligible expenses incurred during the grant periods that are directly attributable to the completed portion of the grant covered by this grant agreement, provided that the grant has been completed in accordance with the terms of the grant agreement. The Recipient shall not incur new obligations for the terminated portion after the effective date of termination. Except with respect to defaults of subcontractors, the Recipient shall not be in default by reason of any failure in performance of this grant agreement in accordance with its terms (including any failure by the Recipient to progress in the performance of the work) if such failure arises out of causes beyond the control and without the default or negligence of the Recipient. Such causes may include but are not limited to acts of God or of the public enemy, acts of the Government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather. In every case, however, the failure to perform must be beyond the control and without the fault or negligence of the Recipient. ARTICLE 16. HISTORICALLY UNDERUTILIZED BUSINESS (HUB) PARTICIPATION FOR PUBLIC TRANSPORTATION CONTRACTS F. It is the policy of the United States Department of Transportation (USDOT) and the Texas Department of Transportation (TxDOT) that Disadvantaged Business Enterprises (DBE) as defined in 49 C.F.R. Part 26 shall have the opportunity to participate in the performance of contracts financed in whole or in part with Federal funds. Consequently, the DBE and the TxDOT's DBE Program requirements of 49 C.F.R. Part 26 and Section 1101(b) of TA-21, 23 U.S.C. §101 note apply to this contract as follows: G. The Recipient and any subcontractor will strive to meet the annual DBE goal of 6.03% by offering DBEs, as defined in 49 C.F.R. Part 26, Subpart A, the opportunity to compete fairly for contracts and subcontracts. DBE participation shall be reported monthly H. The Recipient and any subcontractor shall not discriminate on the basis of race, color, national origin or sex in the award and performance of contracts. I. These requirements shall be physically included in any subcontract. J. Failure to carry out the requirements set forth -above shall constitute a material breach of this contract and may, after the notification of the State, result in termination of the contract by the TxDOT or other such remedy as the TxDOT or the U.S. DOT deems appropriate, including referring the matter for enforcement under 18 U.S.C. §1001 and/or the Program Fraud Civil Remedies Act, 31 U.S.C. §§3801 et seq.. ARTICLE 17. CONTROL OF SUBSTANCE ABUSE Section 5307 Recipient's will submit a copy of the Drug and Alcohol Management Information System (DAMIS) reports by February 15t" of each year using forms furnished by the Federal Transit Administration. ARTICLE 18. PROHIBITED ACTIVITIES A. Neither the Recipient nor any subcontractor shall use federal or state assistance funds for publicity or propaganda purposes designed to support or defeat legislation pending before Congress or the Texas Legislature. No member of or delegate to the Congress of the United States shall share in this grant agreement or benefit from it, except in the same manner as the general public. B. No member, officer or employee of the Recipient during his tenure or one (1) year thereafter shall have any interest, direct or indirect, in this grant agreement or the proceeds thereof. A. Texas Transportation Commission policy mandates that employees of the Texas Department of Transportation (TxDOT) shall not accept any benefits, gifts or favors from any person doing business or who reasonably speaking may do business with the State under this grant agreement. The only exceptions allowed are ordinary business lunches and items that have received the advanced written approval of TxDOT's Executive Director. B. Any persons doing business with or who may reasonably speaking do business with the State under this grant agreement may not make any offer of benefits, gifts or favors to TxDOT employees, except as mentioned here above. Failure on the part of the Recipient to adhere to this policy may result in the termination of this grant agreement. C. The Recipient will comply with Texas Government Code, Chapter 573, by insuring that no officer, employee or member of the Recipient's governing board or of the Recipient's contractors or subcontractors shall vote or confirm the employment of any person related within the second degree by affinity or third degree by consanguinity to any member of the governing body or to any other officer or employee authorized to employ or supervise such person. This prohibition shall not prohibit the employment of a person who shall have been continuously employed for a period of two (2) years prior to the election or appointment of the officer, employee, governing body member related to such person in the prohibited degree. ARTICLE 19. OPEN MEETINGS If applicable, the Recipient will comply with Texas Government Code, Chapter 551, which requires all regular, special or called meetings of governmental bodies to be open to the public, except as otherwise provided by law or specifically permitted in the Texas Constitution. ARTICLE 20. INDEMNIFICATION A. To the extent permitted by law, the Recipient shall indemnify and save harmless the State from all claims and liability due to activities of its agents, employees. or volunteers performed under this agreement and which result from an error, omission or negligent act of the Recipient or of any person employed by the Recipient. B. To the extent permitted by law, the Recipient shall also save harmless the State from any and all expenses, including attorney fees, which might be incurred by the State in litigation or otherwise resisting said claim or liabilities which might be imposed on the State as a result of activities by the Recipient, its agents, employees or volunteers. C. The Recipient acknowledges that it is not an agent, servant or employee of the State and that it is responsible for its own acts and deeds and for those of its agents, employees or volunteers during the performance of the grant agreement. ARTICLE 21. COMPLIANCE WITH LAWS The Recipient shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals in any matter affecting the performance of this grant, including without limitation workers' compensation laws, minimum and maximum salary and wage statutes and regulations, nondiscrimination laws and regulations, and licensing laws and regulations. When required, the Recipient shall furnish the State with satisfactory proof of compliance therewith. ARTICLE 22. NONCOLLUSION The Recipient warrants that it has not employed or retained any company or person, other than a bona fide employee working for the firm, to solicit or secure this grant, and that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration contingent upon or resulting from the award or making of this grant. If the Recipient breaches or violates this warranty, the State shall have the right to annul this agreement without liability or, in its discretion, to deduct from the grant price or consideration, or otherwise recover, the full amount of such fee, commission, brokerage fee, gift, or contingent fee. ARTICLE 23. NOT APPLICABLE ARTICLE 24. NOT APPLICABLE ARTICLE 25. PROGRAM INCOME A. Except for income from royalties and proceeds from the sale of real property or equipment, the Recipient shall retain program income and apply such income to allowable capital or operating expenses. B. The Recipient shall comply with standards governing the receipt and application of program income as set forth in 49 C.F.R. §18.25, Program Income. Program income means gross income received by the Recipient directly generated by -a grant supported activity, or earned only as a result of this grant agreement during the time period specified in Article 1, Grant Period. C. Program income includes income from fees for services performed, from the use or rental of real or personal property acquired with grant funds, from the sale of commodities or items fabricated under a grant agreement, and from payments of principal and interest on loans made with grant funds. Except as otherwise provided in federal regulations, program income does not include grant funds, rebates, credits discounts, refunds, and the interest earned on any of these receipts. ARTICLE 26. SUCCESSORS AND ASSIGNS The Recipient binds themselves, their successors, assigns, executors and administrators in respect to all covenants of this agreement. The Recipient shall not sign, sublet or transfer their interest in this agreement without the written consent of the State. ARTICLE 27. LEGAL CONSTRUCTION In case any one or more of the provisions contained in this agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision thereof and this agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. ARTICLE 28. PRIOR AGREEMENTS This agreement constitutes the sole and only agreement of the parties hereto and supersedes any prior understandings or written or oral agreements between the parties respecting the public transportation grant specifically authorized and funded under this agreement. ARTICLE 29. SPECIAL PROVISIONS FOR CONSTRUCTION AND REPAIR CONTRACTS A. Signs - The Recipient shall cause to be erected at the site of construction, and maintained during construction, signs satisfactory to the State and the U. S Department of Transportation identifying the project and indicating that the Government is participating in the development of the project. B. Hazardous Materials - The Recipient will conduct an inspection of the building for hazardous materials; asbestos and lead -based paint. Removal and disposal will be in accordance with local, state and federal regulations, prior to the initiation of construction. ARTICLE 30. NOT APPLICABLE ARTICLE 31. SIGNATORY WARRANTY The undersigned signatory for the Recipient hereby represents and warrants that he or she is an officer of the organization for which he or she has executed this agreement and that he or she has full and complete authority to enter into this agreement on behalf of the organization. ARTICLE 32. INCORPORATION OF PROVISIONS. Attachments A through D are attached hereto and incorporated into this contract as if fully set forth herein. IN TESTIMONY WHEREOF, the parties hereto have caused these presents to be executed in duplicate counterparts. Executed for the Executive Director and approved for the Texas Transportation Commission for the purpose and effect of activating and/or carrying out the orders, established policies or work programs heretofore approved and authorized by the Texas Transportation Commission. By. District Engineer, Lubbock District Gerald Sturdivant Typed, Printed or Stamped Name Title: Interim District Engineer ATTEST: Rebecca Garza City Secretary Date: August 29, 2002 APPROVED AS TO FORM: William de Haas Contract Manager RECIPIENT: Recipient Name: City of Lub ck By: Signatur fi .; f Authorized Officer Marc McDougal Typed, Printed or Stamped Name Title: Mayor Date: Auqust 29, 2002 APPROVED RECIPIENT A ROV TO CONTENT: Richard 1341ne Assistant City Manager Attachments to Grant Agreement Attached and Incorporated into the Grant Agreement by Reference Attachment Title A Approved Project Description B Approved Project Budget C Disclosure Of Lobbying Activities D Federal Provisions E Not Applicable F Not Applicable G Not Applicable H Not Applicable Resolution No. 2002-R ATTACHMENT A APPROVED PROJECT DESCRIPTION The application for State and Federal assistance, as submitted to the State, is hereby incorporated into this agreement as the project description, unless described below. Resolution No. 2002-R ATTACHMENT B APPROVED PROJECT BUDGET [Please Insert Budget Page] State and Local Urban Public Transportation Grant Agreement Attachment B Approved Project Budget Original Budget Effective Date: September 1, 2002 Project Completion Date: August 31, 2003 Recipient City of Lubbock State Contract Number: 51305FI017 State Project Number: URB 0301( 05) Service Area: City of Lubbock Category ALI Code Description Total Capital ADA capital $300,000.00 Support Equipment $50,000.00 Preventive Maintenance $1,330,000.00 $0.00 Category Total $1,680,000.00 Planning Planning $120,000.00 Operating 30.09.00 Operating Assistance $4,276,006.00 Fed % Federal State Local 80.00% $240,000.00 $0.00 $60,000.00 80.00% $40,000.00 $0.00 $10,000.00 80.00% $1,064,000.00 $0.00 $266,000..00 0.00% $0.00 $0.00 $0.00 80.00% $1,344,000.00 $0.00 $336,000.00 80.00% $96,000.00 $0.00 $24,000.00 31.81% $1,360,000.00 $1,229,354.00 $1,686,652.00 Project Totals $6,076,006.00 $2,800,000.00 $1,229,354.00 $2,046,652.00 Maximum Reimburseable Amount: $1,229,354.00 Page 1 of 1 Resolution NO. 2002—R ATTACHMENT C DISCLOSURE OF LOBBYING ACTIVITIES Complete this form to disclose lobbvina activities pursuant to 31 U.S.C. 1352 1. Type of Federal Action: _B 2. Status of Federal Action: _B_ 3. Report Type: a. contract a. bid/offer/application a. initial filing b. grant b. initial award b. material change c. cooperative agreement c. post award For Material Change Only: d. loan year 2003 quarter 1_ date of last report e. loan guarantee f. loan insurance 4. Name and Address of Reporting Entity: 4. If Reporting Entity in No. 4 is Subawardee, Enter Name Name: City of Lubbock - Citibus and Address of Prime: Address: N/A _ Prime X_ Subawardee Tier, if known: 6. Federal Department/Agency: 7. Federal Program Name/Description Federal Transit Administration CFDA Number, if applicable: 20.509 8. Federal Action Number, If known: 9. Award Amount, if known: 10.a. Name and Address of Lobbying Entity: 10.b. Individual Performing Services (including address if (if individual, last name, first name, MI): different from No. 10A) (last name, first name, MI): N/A (attach Continuation Sheet(s) SF-LLL-A, if N/A necessary) 11. Amount of Payment (check all that apply): 12. Form of Payment (check all that apply): a. cash $ N/A _ actual b. in -kind; specify: nature _planned value 13. Type of Payment (check all that apply): _ a. retainer _ c. commission _ e. deferred _ b. one-time fee _ d. contingent fee _ f. other; specify 14. Brief Description of Services Performed or to be Performed and Date(s) of Service, including officer(s), employee(s), or Member(s) contacted, for Payment indicated in Item 11: Urban Public Transportation 15. Continuation Sheets SF-LLL-A attached: Yes X_ No 16. Information requested through this form is Authorized Representative: authorized by title 31 U.S.C. section 1352. This disclosure of lobbying activities is a material representation of fact upon which reliance was placed by the tier above when this transaction was made or Title: Contract Mana er entered into. This disclosure is required pursuant to 31 / f U.S.C. 1352. This information will be reported to the Signature Congress semi-annual and will be available for public inspection. Any person who fails to file the required Telephone: 806-775-3219 disclosure shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such Date: failure. Resolution No. 2002-R ATTACHMENT D FEDERAL PROVISIONS TABLE OF CONTENTS Section 1. Project Implementation. A. General Requirements. B. U.S. DOT Administrative Requirements. C. Application of Federal, State, and Local Laws and Regulations. D. Significant Participation by a Third Party Contractor. E. Recipient's Responsibility to Extend Federal Requirements to Other Entities. F. No Federal Government Obligations to Third Parties. G. Changes in Project Performance (Le., Disputes, Breaches, Defaults or Litigation). Section 2. Ethics. A. Debarment and Suspension. B. Lobbying Restrictions. C. False or Fraudulent Statements or Claims. Section 3. Accounting Records. A. Project Accounts. B. Documentation of Project Costs and Program Income. Section 4. Reporting, Record Retention, and Access. A. Record Retention. B. Access to Records of Recipients and Recipients. C. Project Close-out. Section 5. Costs Reimbursed. Section 6. Civil Rights. A. Nondiscrimination. B. Equal Employment Opportunity. C. Requirements. Section 7. Not Applicable. Section 8. Procurement. A. Federal Standards. B. Exclusionary or Discriminatory Specifications. C. Bus Seat Specifications. D. Clean Air and Clean Water. E. Preference for Recycled Products. F. Architectural, Engineering, Design, or Related Services. G. Award to Other than the Lowest Bidder. H. Rolling Stock. I. Bonding. J. National Intelligent Transportation Systems Architecture and Standards. Section 9. Leases. A. Capital Leases. B. Leases Involving Certificates of Participation. C. Cross -Border Leases. Section 10. Patent Rights. A. General. B. Federal Rights. Section 11. Rights in Data and Copyrights. A. Definition. B. State and Federal Restrictions. C. Federal Rights in Data and Copyrights. D. Special Rights in Data for Research, Development, Demonstration, and Special Studies (Planning) Projects. E. Hold Harmless. F. Restrictions on Access to Patent Rights. G. Statutory Requirements to Release Data. Section 12. Use of Real Property, Equipment, and Supplies. A. Use of Project Property. B. General Federal Requirements. C. 5310 Program D. Maintenance. E. Records. F. Encumbrance of Project Property. G. Transfer of Project Property. H. Disposition of Project Property. I. Misused or Damaged Project Property. J. Obligations After Project Close-out. Section 13. Insurance. A. Minimum Requirements. B. Flood Hazards. Section 14. Relocation. A. Relocation Protections. B. Nondiscrimination in Housing. Section 15. Real Property. A. Land Acquisition. B. Covenant Assuring Nondiscrimination. C. Recording Title of Real Property. D. FTA Approval of Changes in Real Property Ownership. Section 16. Construction. A. Drafting, Review, and Approval of Construction Plans and Specifications. B. Supervision of Construction. C. Construction Reports. D. Project Management for Major Capital Projects. E. Seismic Safety. Section 17. Employee Protections. A. Construction Activities. B. Activities Not Involving Construction. C. State and Local Government Employees. D. Transit Employee Protective Arrangements. Section 18. Environmental Requirements. A. Use of Public Lands. B. Coastal Zone Management. C. Environmental Justice. Section 19. Energy Conservation. .Section 20. State Management and Monitoring Systems. Section 21. Not Applicable. Section 22. Not Applicable. Section 23. Metric System. Section 24. Substance Abuse. A. Drug Abuse. B. Alcohol Abuse. Section 25. State Safety Oversight of Rail Fixed Guideway Public Systems. Section 26. Seat Belt Use. Section 27. Special Requirements for Urbanized Area Formula Projects. A. Fares and Services. B. Audit Requirements. C. Half -Fare Requirements. D. Procurement of an Associated Capital Maintenance Product. E. Transit Security. F. Restrictions on the Use of Formula Assistance for Operations. G. Reporting Requirements. H. Criminal Sanctions. Section 28. Not Applicable. Section 29. Special Requirements for Job Access and Reverse Commute Grant Projects. A. General Requirements. B. Restrictions on the Use of Grant Funds. Section 30. Special Requirements for Over -the -Road Bus Accessibility Projects. A. General Requirements B. Special Requirements. C. FTA Notice. Section 31. Disputes, Breaches, Defaults, or Other Litigation. A. Notification. B. Federal Interest in Recovery. C. Enforcement. D. State and FTA Concurrence. Resolution No. 2002-R FEDERAL GENERAL TERMS AND CONDITIONS FOR PUBLIC TRANSPORTATION PROJECTS This document contains standard terms and conditions governing the administration of a public transportation project supported with Federal assistance through the Texas Department of Transportation ("State"). The State and the Recipient/Subgrantee ("Recipient") understand and agree that not every provision of this document will apply to every Recipient or every project depending upon the nature of the Project and the section of the statute authorizing the financial assistance. Thus, in consideration of the mutual covenants, promises, and representations herein, the State and the Recipient agree as follows: Section 1. Project Implementation A. General requirements. 1. Effective Date. The effective date of this agreement is the date of final execution by both parties. The Recipient agrees to begin the Project in a timely manner. 2. Recipient's Capacity. The Recipient agrees to maintain or acquire sufficient legal, financial, technical, and managerial capacity to plan, manage, and complete the Project, and provide for the use of Project facilities and equipment, to comply with the terms of the agreement, and all applicable Federal laws, executive orders, regulations, directives, and published policies governing this Project. 3. Completion Dates. The Recipient agrees to complete the Project in a timely manner. B. U.S. DOT Administrative Requirements. The Recipient acknowledges that Federal administrative requirements differ based on the type of entity receiving Federal assistance: 1. A Recipient that is a State, a local government, or an Indian tribal government agrees to comply with U.S. DOT regulations, "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments," 49 C.F.R. Part 18. 2. A Recipient that is an institution of higher education or a nonprofit organization agrees to comply with U.S. DOT regulations, "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non -Profit Organizations," 49 C.F.R. Part 19. C. Application of Federal, State, and Local Laws and Regulations. The Recipient acknowledges that Federal laws, regulations, policies, and related administrative practices applicable to the Project may be modified from time to time. The Recipient agrees that the most recent of such Federal requirements will govern the administration of the Project at any particular time, unless FTA issues a written determination otherwise. The Recipient agrees to include notice in each agreement with any third party contractor participating in the Project that State or Federal requirements may change and the changed requirements will apply to the Project as required, unless the State or Federal Government determines otherwise. D. Significant Participation by a Third Party Contractor. Although the Recipient may enter into a third party contract in which the third party contractor agrees to provide property or services in support of the Project, or even carry out Project activities normally performed by the Recipient, the Recipient continues to remain responsible to the Federal Transportation Administration (FTA) for compliance with Federal requirements. E. Recipient's Responsibility to Extend Federal Requirements to Other Entities. 1. Entities Affected. The Recipient agrees to take appropriate measures necessary to ensure any third party contractors comply with applicable Federal requirements. 2. Documents Affected. The Recipient agrees to require its third party contractors to include adequate provisions to ensure compliance with applicable Federal requirements in each lower tier subcontract and subagreement financed in whole or in part with financial assistance. F. No State or Federal Government Obligations to Third Parties. The Recipient agrees that, absent the State or Federal Government's express written consent, the State or Federal Government shall not be subject to any obligations or liabilities to any Recipient or any third party contractor, or any other person. G. Changes in Project Performance (i.e., Disputes, Breaches, Defaults or Litigation). The Recipient agrees to notify the State immediately of any change in conditions (such as its legal, financial, or technical capacity), or any other event that may significantly affect the Recipient's ability to perform the Project. Section 2. Ethics A. Debarment and Suspension. The Recipient agrees to comply, and assures the compliance of any third party contractor, with Executive Order Numbers 12549 and 12689, "Debarment and Suspension," 31 U.S.C. §6101 note, and U.S. DOT regulations, "Governmentwide Debarment and Suspension (Nonprocurement)," within 49 C.F.R. Part 29. B. Lobbying Restrictions. The Recipient agrees to: 1. Refrain from using Federal assistance funds to support lobbying, 2. Comply, and assure the compliance of each third party contractor at any tier with U.S. DOT regulations, "New Restrictions on Lobbying," 49 C.F.R. Part 20, modified as necessary by 31 U.S.C. §1352. 3. Comply with Federal statutory provisions to the extent applicable prohibiting the use of Federal assistance funds for activities designed to influence Congress or a State legislature on legislation or appropriations, except through proper, official channels. 4. Sign the Lobbying Certification attached. C. False or Fraudulent Statements or Claims. The Recipient acknowledges and agrees that: 1. The Program Fraud Civil Remedies Act of 1986, as amended, 31 U.S.C. §§3801 et seq. and U.S. DOT regulations, "Program Fraud Civil Remedies," 49 C.F.R. Part 31, apply to its activities in connection with the Project. Accordingly, by executing the agreement, the Recipient certifies or affirms the truthfulness and accuracy of each statement it has made, it makes, or it may make in connection with the Project covered by the agreement. In addition to other penalties that may apply, the Recipient also acknowledges that if it makes a false, fictitious, or fraudulent claim, statement, submission, or certification to the State or Federal Government, the Federal Government reserves the right to impose the penalties of the Program Fraud Civil Remedies Act of 1986, as amended, to the extent the Federal Government deems appropriate. 2. If the Recipient makes a false, fictitious, or fraudulent claim, statement, submission, or certification to the State in connection with an urbanized area formula project financed with Federal assistance authorized for 49 U.S.C. §5307, the Government reserves the right to impose the penalties of 18 U.S.C. §1001 and 49 U.S.C. §5307(n)(1), to the extent the Federal Government deems appropriate. Section 3. Accounting Records A. Project Accounts. The Recipient agrees to establish and maintain for the Project either a separate set of accounts, or separate accounts within the framework of an established accounting system, that can be identified with the Project. The Recipient agrees that all checks, payrolls, invoices, contracts, vouchers, orders, or other accounting documents related in whole or in part to the Project shall be clearly identified, readily accessible and available to FTA upon its request, and, to the extent feasible, kept separate from documents not related to the Project. B. Documentation of Project Costs and Program Income. The Recipient agrees to support all costs charged to the Project, including any approved services contributed by the Recipient or others, with properly executed payrolls, time records, invoices, contracts, or vouchers describing in detail the nature and propriety of the charges. The Recipient also agrees to maintain accurate records of all program income derived from implementing the Project, except certain income determined by FTA to be exempt from the general Federal program income requirements. Section 4. Reporting, Record Retention, and Access A. Record Retention. The Recipient agrees to maintain intact and readily accessible all data, documents, reports, records, contracts, and supporting materials relating to the Project as the State or the Federal Government may require during the course of the Project and for four years thereafter. B. Access to Records. Upon request, the Recipient agrees to permit and require its Recipients to permit the U.S. Secretary of Transportation, the Comptroller General of the United States, and the State, or their authorized representatives, to inspect all Project work, materials, payrolls, and other data, and to audit the books, records, and accounts pertaining to the Project. C. Project Close-out. Project close-out does not alter the reporting and record retention requirements of this Agreement. Section 5. Costs Reimbursed The Recipient understands and agrees that Project costs eligible for participation must comply with ail the following requirements: 1. Conform with the Attachment A, Approved Project Description, the Attachment B, Approved Project Budget, and all other terms of the agreement; 2. Are necessary in order to accomplish the Project; 3. Are reasonable for the goods or services purchased; 4. Are actual net costs to the Recipient (i.e., the price paid minus any refunds, rebates, or other items of value received by the Recipient that have the effect of reducing the cost actually incurred, excluding program income); 5. Are incurred within the agreement time period; 6. Are satisfactorily documented; 7. Are treated consistently in accordance with accounting principles and procedures approved by the State; 8. Are eligible under State and Federal law, regulation, rule, or guidelines for participation; and 9. Unless permitted otherwise by Federal statute or regulation, comply with the: (1) U.S. Office of Management and Budget (OMB) CircularA-87, Revised, "Cost Principles for State and Local Governments" if the Recipient is a local government or an Indian tribal government; (2) OMB Circular A-21, Revised, "Cost Principles for Educational Institutions" if the Recipient is an institution of higher education; (3) OMB Circular A-122, Revised, "Cost Principles for Non -Profit Organizations" if the Recipient is a private nonprofit organization; or (4) Federal Acquisition Regulation, 48 C.F.R. Chapter I, Subpart 31.2, "Contracts with Commercial Organizations" if the Recipient is a for -profit organization. Additionally, the Recipient shall comply with the requirements of the Singie Audit Act of 1984, P.L. 98-502, ensuring that the single audit report includes the coverage stipulated in OMB Circular A-133. Section 6. Civil Rights The Recipient agrees to comply with all applicable civil rights statutes and implementing regulations including, but not limited to, the following: (A) Nondiscrimination - In accordance with Title VI of the Civil Rights Act, as amended, 42 U.S.C. § 2000d, section 303 of the Age Discrimination Act of 1975, as amended, 42 U.S.C. § 6102, section 202 of the Americans with Disabilities Act of 1990, 42 U.S.C. § 12132, and Federal transit law at 49 U.S.C.§ 5332, the Subreceipient agrees that it will not discriminate against any employee or applicant for employment because of race, color, creed, national origin, sex, age, or disability. In addition, the Subreceipient agrees to comply with applicable Federal implementing regulations and other implementing requirements FTA may issue. (B) Equal Employment Opportunity - The following equal employment opportunity requirements apply to the underlying contract: (1) Race, Color, Creed, National Origin, Sex - In accordance with Title VII of the Civil Rights Act, as amended, 42 U.S.C. § 2000e, and Federal transit laws at 49 U.S.C. § 5332, the Subreceipient agrees to comply with all applicable equal employment opportunity requirements of U.S. Department of Labor (U.S. DOL) regulations, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor," 41 C.F.R. Parts 60 et seq ., (which implement Executive Order No. 11246, "Equal Employment Opportunity," as amended by Executive Order No. 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," 42 U.S.C. § 2000e note), and with any applicable Federal statutes, executive orders, regulations, and Federal policies that may in the future affect construction activities undertaken in the course of the Project. The Subreceipient agrees to take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, national origin, sex, or age. 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. In addition, the Subreceipient agrees to comply with any implementing requirements FTA may issue. (2) Age - In accordance with section 4 of the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § § 623 and Federal transit law at 49 U.S.C. § 5332, the Subreceipient agrees to refrain from discrimination against present and prospective employees for reason of age. In addition, the Subreceipient agrees to comply with any implementing requirements FTA may issue. (3) Disabilities - In accordance with section 102 of the Americans with Disabilities Act, as amended, 42 U.S.C. § 12112, the Subreceipient agrees that it will comply with the requirements of U.S. Equal Employment Opportunity Commission, "Regulations to Implement the Equal Employment Provisions of the Americans with Disabilities Act," 29 C.F.R. Part 1630, pertaining to employment of persons with disabilities. In addition, the Subreceipient agrees to comply with any implementing requirements FTA may issue. (C) Requirements. The Subreceipient also agrees to include these requirements in each subcontract financed in whole or in part with Federal assistance provided by FTA, modified only if necessary to identify the affected parties. Section 7. Not Applicable Section 8. Procurement To the extent applicable, the Recipient agrees to comply with the following third party procurement requirements: A. Federal Standards. The Recipient agrees to comply with FTA Circular 4220.1 D, "Third Party Contracting Requirements," including any revision or replacement thereof, and applicable Federal regulations or requirements, including FTA third party contracting regulations when promulgated. The FTA Best Practices Procurement Manual provides additional procurement guidance. Nevertheless, be aware that the FTA Best Practices Procurement Manual is focused on procurement processes and may omit certain Federal requirements applicable to the work to be performed. B. Exclusionary or Discriminatory Specifications. Apart from inconsistent requirements imposed by Federal statute or regulations, the Recipient agrees to comply with the requirements of 49 U.S.C. §5323(h)(2) by refraining from using any Federal assistance awarded by FTA to support procurements using exclusionary or discriminatory specifications. C. Bus Seat Specifications. The Recipient may use specifications conforming with the requirements of 49 U.S.C. §5323(e) to acquire bus seats. D. Clean Air and Clean Water. The Recipient agrees to include in third party contracts exceeding $100,000 adequate provisions to ensure that Project participants report the use of facilities placed or likely to be placed on EPA's "List of Violating Facilities," refrain from using violating facilities, report violations to FTA and the Regional EPA Office, and comply with the inspection and other applicable requirements of: 1. Section 114 of the Clean Air Act, as amended, 42 U.S.C. §7414, and other applicable provisions of the Clean Air Act, as amended, 42 U.S.C. §§7401 et seq.; and 2. Section 308 of the Federal Water Pollution Control Act, as amended, 33 U.S.C. §1318, and other provisions of the Federal Water Pollution Control Act, as amended, 33 U.S.C. §§1251 et seq. E. Preference for Recycled Products. To the extent applicable, the Recipient agrees to comply with U.S. Environmental Protection Agency (U.S. EPA) "Comprehensive Procurement Guidelines for Products Containing Recovered Materials," 40 C.F.R. Part 247, implementing section 6002 of the Resource Conservation and Recovery Act, as amended, 42 U.S.C. §6962, and otherwise provide a competitive preference for products and services that conserve natural resources and protect the environment and are energy efficient. F. Architectural, Engineering, Design, or Related Services. When procuring architectural, engineering, or related services, the Recipient agrees to comply with the provisions of 49 U.S.C. §5325(b), either by negotiating for those services in the same manner as a contract for architectural and engineering services is negotiated under Title IX of the Federal Property and Administrative Services Act of 1949, as amended, 40 U.S.C._§§541 et seq., or by using an equivalent qualifications -based requirement of the State. When, awarding contracts for architectural, engineering, or related services, the Recipient agrees to accept undisputed audits conducted by other governmental agencies, in accordance with 23 U.S.C. §112(b)(2) (C) through (F). To the extent the Recipient qualifies for an exception in accordance with 49 U.S.C. §5325(b), however, this subsection does not apply. G. Award to Other than the Lowest Bidder. In accordance with 49 U.S.C. §5325(c), a Recipient may award a third party contract to a party other than the lowest bidder, when such an award furthers objectives consistent with the purposes of 49 U.S.C. Chapter 53 and any implementing regulations, directives, circulars, manuals, or other guidance FTA may issue and is consistent with state law. H. Rolling Stock. In acquiring rolling stock, the Recipient agrees as follows: 1. Method of Acquisition. The Recipient may award a third party contract for rolling stock based on initial capital costs, performance, standardization, life cycle costs, and other factors, or based on a competitive procurement process, in accordance with 49 U.S.C. §5326(c). 2. Multi -year Options. In accordance with 49 U.S.C. §5326(b)(1), a Recipient may procure rolling stock using financial assistance appropriated for 49 U.S.C. Chapter 53 using a contract with an option, not to exceed 5 years after the date of the original contract, to purchase additional rolling stock or replacement. 3. Pre -Award and Post -Delivery Requirements. The Recipient agrees to comply with the requirements of 49 U.S.C. §5323(m) and FTA regulations, "Pre -Award and Post- Delivery Audits of Rolling Stock Purchases," 49 C.F.R. Part 663, and any revision thereto. 4. Bus Testing. To the extent applicable, the Recipient agrees to comply with the requirements of 49 U.S.C. §5323(c) and FTA regulations, "Bus Testing," 49 C.F.R. Part 665, and any revision thereto. I. Bonding. To the extent applicable, the recipient agrees to comply with the following bonding requirements. 1. Construction Activities. The Recipient agrees to provide bid guarantee, contract performance, and payment bonding to the extent deemed adequate by FTA and applicable Federal regulations, and comply with any other bonding requirements FTA may issue. 2. Other Activities. The Recipient agrees to comply with any other bonding requirements or restrictions FTA may impose. J. National Intelligent Transportation Systems Architecture and Standards. The Recipient agrees to conform, to the extent applicable, to the National Intelligent Transportation Standards architecture in compliance with section 5206(e) of TEA-21, 23 U.S.C. §502 note, and with FHWA/FTA's "Transportation Equity Act for the 21 st Century; the Interim Guidance on Conformity with the National Intelligent Transportation Systems (ITS) Architecture and Standards," 63 Fed. Reg. 70443 et seq., December21, 1998, and other subsequent Federal directives that may be issued. Section 9. Leases A. Capital Leases. To the extent applicable, the Recipient agrees to comply with FTA regulations, "Capital Leases," 49 C.F.R. Part 639, and any revision thereto. B. Leases Involving Certificates of Participation. The Recipient agrees to obtain FTA concurrence before entering into a leasing arrangement involving the issuance of certificates of participation in connection with the acquisition of any capital asset. C. Cross -Border Leases. To the extent applicable, the Recipient agrees to comply with FTA Circular 7020.1, "Cross -Border Leasing Guidelines," April 26, 1990, in connection with the acquisition of capital assets involving a cross -border lease. Section 10. Patent Rights A. General. If any invention, improvement, or discovery of the Recipient or any of its third party contractors is conceived or first actually reduced to practice in the course of or under the Project, and that invention, improvement, or discovery is patentable under the laws of the United States of America or any foreign country, the Recipient agrees to notify FTA immediately and provide a detailed report. B. Federal Rights. The Recipient agrees that its rights and responsibilities, and those of each third party contractor at any tier pertaining to that invention, improvement, or discovery will be determined in accordance with applicable State and Federal laws, regulations, including any waiver thereof. Absent a determination in writing to the contrary by the State and Federal Government, the Recipient agrees to transmit to the State and FTA those rights due the State and Federal Government in any invention, improvement, or discovery resulting from that third party contract as specified in U.S. Department of Commerce regulations, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements," 37 C.F.R. Part 401 (implementing the Presidential Memorandum [Statement] on Government Patent Policy to the Heads of Executive Departments and Agencies, dated February 18, 1983, 19 Weekly Comp. Pres. Doc. 252-253, Feb. 28, 1983), irrespective of the status of the Recipient, any Recipient, or any third party contractor at any tier (i.e., a large business, small business, State government or State instrumentality, local government, nonprofit organization, institution of higher education, individual, etc.). Section 11. Rights in Data and Copyrights A. Definition. The term "subject data" used in this section means recorded information, whether or not copyrighted, that is delivered or specified to be delivered under the agreement. Examples include, but are not limited to: computer software, standards, specifications, engineering drawings and associated lists, process sheets, manuals, technical reports, catalog item identifications, and related information. The term "subject data" used in this section does not include financial reports, cost analyses, or similar information used for Project administration. B. State and Federal Restrictions. Except for its own internal use, the Recipient may not publish or reproduce subject data in whole or in part, or in any manner or form, nor may the Recipient authorize others to do so, without the written consent of the State and Federal Government, until such time as the State and Federal Government may have either released or approved the release of such data to the public unless the Recipient is an institution of higher learning. C. Federal Rights in Data and Copyrights. The Recipient agrees to provide to the State and Federal Government a royalty -free, non-exclusive and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use, for State and Federal Government purposes the "subject data." As used in the previous sentence, "for State and Federal Government purposes," means use only for the direct purposes of the State and Federal Government. Without the copyright owner's consent, the State and Federal Government may not extend to other parties the State or Federal Government's license to: 1. Any subject data developed under the agreement or under a third party contract financed by the agreement, whether or not a copyright has been obtained; and 2. Any rights of copyright to which a Recipient or a third party contractor purchases ownership with Federal assistance. D. Special Rights in Data for Research, Development, Demonstration, and Special Studies (Planning) Projects. FTA's and the State's purpose in providing financial assistance for a special studies (planning), research, development, or demonstration Project, is to increase transportation knowledge, rather than limit the benefits of the Project to participants in the Project. Therefore, unless FTA and the State determine otherwise, the Recipient of financial assistance to support a research, development, demonstration, or a special studies (planning) Project agrees that, in addition to the rights in data and copyrights of this agreement, FTA and the State may make available to any FTA recipient, Recipient, third party contractor, or third party subcontractor, either FTA's or the State's license in the copyright to the subject data or a copy of the subject data. If the Project is not completed for any reason whatsoever, all data developed under that Project shall become subject data and shall be delivered as the FTA and the State may direct. This Subsection does not apply to adaptations of automatic data processing equipment or programs for the Recipient's use whose costs are financed with Federal funds for capital Projects. E. Hold Harmless. Except as prohibited or otherwise limited by law, the Recipient agrees to indemnify, save, and hold harmless the State and the Federal Government and its officers, agents, and employees acting within the scope of their official duties against any liability, including costs and expenses, resulting from any willful or intentional violation by the Recipient of proprietary rights, copyrights, or right of privacy, arising out of the publication, translation, reproduction, delivery, use, or disposition of any data furnished under the Project. F. Restrictions on Access to Patent Rights. Nothing in this section shall imply a license to the State and the Federal Government under any patent or be construed to affect the scope of any license or other right otherwise granted to the Federal Government under any patent. G. Statutory Requirements to Release Data. The Recipient understands and agrees that data and information submitted may be required to be made available for dissemination under the Texas Public Information (Government Code, Chapter 552) or Freedom of Information Act, or other Federal statute(s) in accordance with implementation instructions contained in 49 C.F.R. §19.36, revised March, 2000, to the extent applicable, and any subsequent applicable State or Federal requirements that may be promulgated. Section 12. Use of Real Property, Equipment, and Supplies Unless otherwise approved by FTA, the Recipient agrees to comply with the following requirements with respect to real property, equipment, and supplies: A. Use of Property. The Recipient agrees to use Project real property, equipment, and supplies for appropriate Project purposes (which may include joint development purposes that generate program income, both during and after the award period used to support transit activities) for the duration of the useful life of that property, as required by FTA. Should the Recipient unreasonably delay or fail to use Project property during the useful life of that property, the Recipient agrees that it may be required to return the entire amount of the Federal assistance expended on that property. The Recipient further agrees to notify FTA immediately when any Project property is withdrawn from Project use or when Project property is used in a manner substantially different from the representations made in the Application or the Project Description for the Grant Agreement. B. General Federal Requirements. A Recipient that is a State, a local government, or an Indian tribal government agrees to comply with property management standards of 49 C.F.R. §§18.31 through 18.34, including any amendments thereto, and other applicable guidelines or regulations the Federal Government may issue. A Recipient that is an institution of higher education, or a private nonprofit organization, agrees to comply with 49 C.F.R. §§19.30 through 19.37, including any amendments thereto, and other applicable guidelines or regulations the Federal Government may issue. Any exception to the requirements of 49 C.F.R. §§18.31 through 18.34, and to 49 C.F.R. §§19.30 through 19.37, requires the express approval of the State and Federal Government. A Recipient that is a for -profit organization agrees to comply with property management standards satisfactory to FTA. Nevertheless, FTA has established specific reimbursement requirements for premature dispositions of certain Project equipment (i.e., when Project equipment is withdrawn from appropriate use before the expiration of the equipment's useful life established by FTA). C. 5310 Program. The Recipient, where practical, shall make available the vehicle purchased under this program to provide transportation to other elderly persons and persons with disabilities beyond the Recipient's own clients when not being used for grant -related purposes. According to FTA C 9070.1 E, the Recipient/Recipient shall also provide transportation to the general public on an incidental basis if such service does not interfere with transportation services for the general elderly and disabled public. D. Maintenance. The Recipient agrees to maintain Project real property and equipment in good operating order, in compliance with any guidelines, directives, or regulations the State or FTA may issue. E. Records. The Recipient agrees to keep satisfactory records regarding the use of Project real property, equipment, and supplies, and submit to the FTA upon request such information as may be required to assure compliance. F. Encumbrance of Project Property. The Recipient agrees to maintain satisfactory continuing control of Project real property or equipment. Thus, absent written authorization by FTA permitting otherwise: 1. Written Transactions. The Recipient agrees to refrain from executing any transfer of title, lease, lien, pledge, mortgage, encumbrance, third party contract, grant anticipation I" H. note, alienation, or any other obligation that in any way would affect the Federal or State interest in any Project real property or equipment. 2. Oral Transactions. The Recipient agrees to refrain from obligating itself in any manner to any third party with respect to Project real property or equipment. 3. Other Actions. The Recipient agrees to refrain from taking any action that would either adversely affect the Federal or State interest or impair the Recipient's continuing control of the use of Project real property or equipment. Transfer of Project Property. The Recipient understands and agrees as follows: 1. Recipient Request. The Recipient may transfer assets financed with Federal assistance authorized for 49 U.S.C. chapter 53 to a public body to be used for any public purpose with no further obligation to the Federal Government, provided the transfer is approved by the State and Federal Transit Administrator and conforms with the requirements of 49 U.S.C. §§5334(g)(1) and (2). 2. Direction. The Recipient agrees that the State may direct the disposition of, and even require the Recipient to transfer title to, any real property, equipment, or supplies financed with Federal assistance. 3. Leasing Project Property to Another Party. If the Recipient leases any Project asset to another party, the Recipient agrees to retain ownership of the leased asset, and assure that the lessee will use the Project asset appropriately, either through a "Lease and Supervisory Agreement" between the Recipient and lessee, or another similar document. Upon request, the Recipient agrees to provide a copy of any relevant documents. Disposition of Project Property. With prior FTA and State approval, the Recipient may sell, transfer, or lease Project property and use the proceeds to reduce the gross project cost of other eligible capital transit projects to the extent permitted by 49 U.S.C. §5334(g)(4). Nevertheless, the Recipient agrees that the State may establish the useful life for Project property, and that the Recipient will use Project property continuously and appropriately throughout that useful life. 1. Project Property Whose Useful Life Has Expired. When the useful life of Project Property has expired, the Recipient agrees to comply with FTA's and the State's disposition requirements. 2. Project Property Prematurely Withdrawn from Use. For property withdrawn from appropriate use before its useful life has expired, the Recipient agrees -as follows: a) Notification Requirement. The Recipient agrees to notify the State immediately when any Project real property, equipment, or supplies are prematurely withdrawn from appropriate use, whether by planned withdrawal, misuse, or casualty loss. b) Calculating the Fair Market Value of Prematurely Withdrawn Project Property. The Recipient agrees that the Federal Government retains a Federal interest in the fair market value of Project property prematurely withdrawn from mass transportation use. The amount of the Federal interest in the property shall be determined on the basis of the ratio of the Federal assistance awarded by the Federal Government for the property to the actual cost of the Property. The Recipient agrees that the fair market value of property prematurely withdrawn from use will be calculated as follows: 1) Equipment and Supplies. Unless otherwise determined in writing by the State, fair market value shall be calculated by straight-line depreciation of the equipment or supplies, based on the useful life of the equipment or supplies established or approved by the State. The fair market value of equipment and supplies shall be the value immediately before the occurrence prompting the withdrawal of that property from use. In the case of equipment or supplies lost or damaged by fire, casualty, or natural disaster, the fair market value shall be calculated on the basis of the condition of that property immediately before the fire, casualty, or natural disaster, irrespective of the extent of insurance coverage. As authorized by 49 C.F.R. §18.32(b), the State may use its own disposition procedures, provided that those procedures comply with the State's laws. 2) Real Property. The Recipient agrees that the fair market value of real property shall be determined either by competent appraisal based on an appropriate date approved by the Federal Government, as provided by 49 C.F.R. Part 24, or by straight line depreciation, whichever is greater. 3) Exceptional Circumstances. The State reserves the right to require the use of another method of determining the fair market value of property. In unusual circumstances, the Recipient may request that another reasonable valuation method be used including, but not limited to, accelerated depreciation, comparable sales, or established market values. In determining whether to approve such a request, the State may consider any action taken, omission made, or unfortunate occurrence suffered by the Recipient with respect to the preservation or conservation of Project property withdrawn from appropriate use. c) Obligations. Unless otherwise approved in writing by the State, the Recipient is required to remit to the State the Federal interest in the fair market value of Project real property, equipment, or supplies prematurely withdrawn from appropriate use. in the case of fire, casualty, or natural disaster, the Recipient may fulfill its responsibilities with respect to the Federal interest remaining in the damaged equipment or supplies by either: 1) Investing an amount equal to the remaining Federal interest in like -kind equipment or supplies that are eligible for assistance within the scope of the Project that provided financial assistance for the damaged equipment or supplies; or 2) Returning an amount equal to the remaining Federal interest in the damaged property. 1. Misused or Damaged Project Property. If any damage to Project real property, equipment, or supplies results from abuse or misuse of that property occurring with the Recipient's knowledge and consent, the Recipient agrees to restore that real property or equipment to its original condition or refund the value of the Federal interest in the damaged property, as the State may require. J. Obligations After Project Close-out. A Recipient that is a State, local, or Indian tribal government agrees that Project close-out will not alter its property management obligations and applicable State and Federal rules and regulations and other FTA requirements or directives. Section 13. Insurance In addition to any other insurance requirements that may apply in connection with the Project, the Subecipient agrees as follows: A. Minimum Requirements. At a minimum, the Recipient agrees to comply with the insurance requirements normally imposed by the laws, regulations, and ordinances imposed by its State and local governments. For construction and/or repair contracts, the Recipient shall comply with insurance requirements as established in 49 C.F.R. Part 18. B. Flood Hazards. To the extent applicable, the Recipient agrees to comply with the flood insurance purchase requirements of section 102(a) of the Flood Disaster Protection Act of 1973, 42 U.S.C. §4012a(a), with respect to any Project activity involving construction or acquisition having an insurable cost of $10,000 or more. Section 14. Relocation When relocation of individuals or businesses is required, the Recipient agrees to comply with the following requirements: A. Relocation Protections. The Recipient agrees to comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, 42 U.S.C. §§4601 et seq.; and U.S. DOT regulations, "Uniform Relocation and Real Property Acquisition for Federal and Federally Assisted Programs," 49 C.F.R. Part 24, which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal and federally assisted programs. These requirements apply to all interests in real property acquired for Project purposes regardless of Federal participation in purchases. B. Nondiscrimination in Housing, The Recipient agrees to comply with Title VIII of the Civil Rights Act of 1968, 42 U.S.C. §§3601 et seq. and Executive Order No. 12892, "Leadership and Coordination of Fair Housing in Federal Programs: Affirmatively Furthering Fair Housing," 42 U.S.C. §3608 note, when carrying out its responsibilities to provide housing used to meet Federal relocation requirements. Section 15. Real Property For Projects involving real property, the Recipient agrees as follows: A. Land Acquisition. The Recipient agrees to comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, 42 U.S.C. §§4601 et seq.; and U.S. DOT regulations, "Uniform Relocation and Real Property Acquisition for Federal and Federally Assisted Programs," 49 C.F.R. Part 24. These requirements apply to all interests in real property acquired for Project purposes regardless of Federal participation in purchases. B. Covenant Assuring Nondiscrimination. The Recipient agrees to include a covenant in the title of the real property to assure nondiscrimination during the useful life of the Project. C. Recording Title to Real Property. To the extent required by the State and FTA, the Recipient agrees to record the State and Federal interest in the title of real property. D. Approval of Changes in Real Property Ownership. The Recipient agrees that it will not dispose of, modify the use of, or change the terms of the real property title, or other interest in the site and facilities without permission and instructions from the State. Section 16. Construction For activities involving construction, the Recipient agrees as follows: A. Drafting, Review, and Approval of Construction Plans and Specifications. To the extent required by the State, the Recipient agrees to comply with State requests pertaining to the drafting, review, and approval of construction plans and specifications. B. Supervision of Construction. The Recipient agrees to provide and maintain competent and adequate engineering supervision at the construction site to ensure that the complete work conforms to the approved plans and specifications. C. Construction Reports. The Recipient agrees to provide progress reports and such other information as may be required by the State. D. Project Management for Major Capital Projects. The Recipient agrees to comply with FTA regulations, "Project Management Oversight," 49 C.F.R. Part 633, and any revision thereto, applicable to a Major Capital Project. E. Seismic Safety. The Recipient agrees to comply with the U.S. DOT regulations at 49 C.F.R. Part 41, Executive Order No. 12699, "Seismic Safety of Federal and Federally -Assisted or Regulated New Building Construction," 42 U.S.C. §7704 note, pursuant to the Earthquake Hazards Reduction Act of 1977, as amended, 42 U.S. C. §§7701 et seq., pertaining to seismic safety in DOT assisted construction projects (specifically, 49 C.F.R. §41.117), and with any implementing guidelines FTA may issue. Section 17. Employee Protections A. Construction Activities. The Recipient agrees to comply, and assures the compliance of each contractor to any tier, with the following employee protection requirements for construction employees: 1. Davis -Bacon Act, as amended, 40 U.S.C. §§276a - 276a(7), FTA's enabling legislation requiring compliance with the Davis -Bacon Act, at 49 U.S.C. §5333(a), and U.S. DOL regulations, "Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (also Labor Standards Provisions Applicable to Nonconstruction Contracts Subject to the Contract Work Hours and Safety Standards Act)," 29 C.F.R. Part 5; 2. Contract Work Hours and Safety Standards Act, as amended, particularly with the requirements of section 102 of the Act, 40 U.S.C. §§327 - 332; and U.S. DOL regulations, "Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (also Labor Standards Provisions Applicable to Nonconstruction Contracts Subject to the Contract Work Hours and Safety Standards Act)," 29 C.F.R. Part 5; and with section 107 of the Act, 40 U.S.C. §333, and U.S. DOL regulations, "Safety and Health Regulations for Construction," 29 C.F.R. Part 1926; and 3. Copeland "Anti -Kickback" Act, as amended, 18 U.S.C. §874 and 40 U.S.C. §276c, and U.S. DOL regulations, "Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in part by Loans or Grants from the United States," 29 C.F.R. Part 3. B. Activities Not Involving Construction. The Recipient agrees to comply, and assures the compliance of contractors at any tier, with any applicable employee protection requirements for nonconstruction employees of section 102 of the Contract Work Hours and Safety, Standards Act, as amended, 40 U.S.C. §§327 - 332, and U.S. DOL regulations, "Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction (also Labor Standards Provisions Applicable to Nonconstruction Contracts Subject to the Contract Work Hours and Safety Standards Act)," 29 C.F.R. Part 5. C. State and Local Government Employees. The Recipient agrees that the minimum wage and overtime provisions of the Fair Labor Standards Act, as amended, 29 U.S.C. §§206 and 207, apply to employees performing Project work involving commerce, and apply to any State or local government employees that are public transit authority employees. Thus, the Recipient, agrees to comply with the Fair Labor Standards Act's minimum wage and overtime requirements for employees performing Project work. D. Transit Employee Protective Arrangements. If transit employee protective arrangements required by U.S. DOL apply to transit operations performed in connection with the Project, the Recipient agrees to comply with the applicable requirements for its Project as follows: 1. Standard Transit Employee Protective Arrangements. To the extent that the Project involves transit operations, the Recipient agrees to implement the Project in compliance with terms and conditions the U.S. Secretary of Labor has determined to be fair and equitable to protect the interests of any employees affected by the Project and that meet the requirements of 49 U.S.C. §5333(b), and of the U.S. DOL guidelines, "Section 5333(b), Federal Transit Law," 29 C.F.R. Part 215 and any amendments thereto. These terms and conditions are identified in U.S. DOL's certification of transit employee protective arrangements to FTA. The Recipient agrees to implement the Project in compliance with the conditions stated in that U.S. DOL certification. That U.S. DOL certification and any documents cited therein are incorporated by reference. The requirements of this paragraph do not apply to Projects for the elderly and persons with disabilities that are authorized by 49 U.S.C. §5310(a)(2) or to Projects for nonurbanized areas that are authorized by 49 U.S.C. §5311; separate requirements for those Projects are contained in Subsections 17.D(2) and 17.D(3) of this Agreement. 2. Transit Employee Protective Arrangements for Projects for Elderly and Persons with Disabilities Authorized by 49 U.S.C. §5310(a)(2). To the extent that the U.S. Secretary of Transportation has determined or determines in the future that employee protective arrangements required by 49 U.S.C. §5333(b) are necessary or appropriate for a public body Recipient under the Project, the Recipient agrees to carry out the Project in compliance with the terms and conditions determined by the Secretary of Labor necessary to meet the requirements of 49 U.S.C. §5333(b), and the U.S. DOL guidelines, "Section 5333(b), Federal Transit Law," at 29 C.F.R. Part 215, and any amendments thereto. These terms and conditions are identified in U.S. DOL's certification of transit employee protective arrangements to FTA. The Recipient agrees to implement the Project in compliance with the conditions stated in that U.S. DOL certification. That U.S. DOL certification and any documents cited therein are incorporated by reference and made part of this Agreement. 3. Transit Employee Protective Arrangements for Projects in Nonurbanized Areas Authorized by 49 U.S.C. §5311. The Recipient agrees to comply with the terms and conditions of the Special Warranty for the Nonurbanized Area Program agreed to by the Secretaries of Transportation and Labor, dated May 31, 1979, U.S. DOL implementing procedures, and any revisions thereto. Section 18. Environmental Requirements The Recipient recognizes that many Federal and State laws imposing environmental and resource conservation requirements may apply to the Project. Some, but not all, of the major Federal laws that may affect the Project include: the National Environmental Policy Act of 1969, as amended, 42 U.S.C. §§4321 et seq.; the Clean Air Act, as amended, 42 U.S.C. §§7401 et seq. and scattered sections of 29 U.S.C.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. §§1251 et seq.; the Resource Conservation and Recovery Act, as amended, 42 U.S.C. §§6901 et seq.; and the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, 42 U.S.C. §§9601 et seq. The Recipient also recognizes that U.S. EPA, FHWA and other Federal agencies have issued, and in the future are expected to issue, regulations, guidelines, standards, orders, directives, or other requirements that may affect the Project. Thus, the Recipient agrees to comply, and assures the compliance of each Recipient and each contractor, with any such Federal requirements as the Federal Government may now or in the future promulgate. Listed below are requirements of particular concern to FTA and the Recipient. The Recipient agrees that those laws and regulations do not constitute the Recipient's entire obligation to meet all Federal environmental and resource conservation requirements. A. Use of Public Lands. The Recipient agrees that no publicly owned land from a park, recreation area, or wildlife or waterfowl refuge of national, State, or local significance as determined by the Federal, State, or local officials having jurisdiction thereof, or any land from a historic site of national, State, or local significance may be used for the Project unless FTA makes the specific findings required by 49 U.S.C. §303. B. Coastal Zone Management. The Recipient agrees to assure Project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972, as amended, 16 U.S.C. §§1451 et seq. C. Environmental Justice. The Recipient agrees to comply with the policies of Executive Order No. 12898, "Federal Actions to Address Environmental Justice in Minority Populations and Low -Income Populations," 42 U.S.C. §4321 note. Section 19. Energy Conservation The Recipient agrees to comply with the mandatory energy efficiency standards and policies within the applicable State energy conservation plans issued in compliance with the Energy Policy and Conservation Act, 42 U.S.C. §§6321 et seq. Section 20. State Management and Monitoring Systems The Recipient agrees to comply with applicable requirements of joint FHWA/FTA regulations, "Management and Monitoring Systems," 23 C.F.R. Parts 500 and 49 C.F.R. Part 614, to the extent applicable. Section 21. Not Applicable Section 22. Not Applicable Section 23. Metric System As required by U.S. DOT or FTA, the Recipient agrees to use the metric system of measurement in its Project activities, pursuant to the Metric Conversion Act, as amended by the Omnibus Trade and Competitiveness Act, 15 U.S.C. §§205a et seq.; Executive Order No. 12770, "Metric Usage in Federal Government Programs," 15 U.S.C. §205a note; and other U.S. DOT or FTA regulations, guidelines, and policies. To the extent practicable and feasible, the Recipient agrees to accept products and services with dimensions expressed in the metric system of measurement. Section 24. Substance Abuse A. Drug Abuse. The Recipient agrees: 1. The Recipient agrees to comply with U.S. DOT regulations, "Drug -Free Workplace Requirements (Grants)," 49 C.F.R. Part 29, Subpart F, as modified by 41 U.S.C. §§702 et seq. 2. To the extent applicable, the Recipient agrees to comply with FTA regulations, "Prevention of Prohibited Drug Use in Transit Operations," 49 C.F.R. Part 655, including subsequent FTA regulations when promulgated, and any guidance on the drug abuse provisions of 49 U.S.C. §5331 that FTA or U.S. DOT may issue. Alcohol Abuse. To the extent applicable, the Recipient agrees to comply with FTA regulations, "Prevention of Alcohol Misuse in Transit Operations," 49 C.F.R. Part 655, including subsequent FTA regulations when promulgated, and any guidance on the alcohol abuse provisions of 49 U.S.C. §5331 that FTA or U.S. DOT may issue Section 25. State Safety Oversight of Rail Fixed Guideway Public Systems To the extent applicable, the Recipient agrees to comply with 49 U.S.C. §5330, and FTA regulations, "Rail Fixed Guideway Systems; State Safety Oversight," 49 C.F.R. Part 659, and any guidance that FTA or U.S. DOT may issue to implement 49 U.S.C. §5330. Section 26. Seat Belt Use Pursuant to Executive Order No. 13043, April 16, 1997, 23 U.S.C. §402, the Recipient is encouraged to adopt on-the-job seat belt use policies and programs for its employees when operating company - owned, rented, or personally -operated vehicles and include this provision in third party contracts, entered into under this Project. Section 27. Special Requirements for Urbanized Area Formula Projects The following requirements apply to all Projects financed with Federal assistance authorized for 49 U.S.C. §5307: A. Fares and Services. Before raising fares or instituting a major reduction of service, the Recipient agrees to use its established administrative process to solicit and consider public comment. B. Audit Requirements. The Recipient agrees that the State or Federal Government may conduct or require the Recipient to engage an independent entity to conduct annual or more frequent reviews and audits required by 49 U.S.C. §5307(i) and applicable regulations or guidelines that the Federal Government may issue. C. Half -Fare Requirements. The Recipient agrees that the fares or rates charged the elderly and persons with disabilities during nonpeak hours for transportation using or involving Project facilities and equipment will not exceed one-half of the rates that generally apply to other persons at peak hours, whether the operation of such facilities and equipment is by the Recipient or another entity under lease or otherwise. The Recipient agrees to give the rate required herein to any person presenting a Medicare card duly issued to that individual pursuant to Title II or Title XVIII of the Social Security Act, 42 U.S.C. §§401 et seq., and 42 U.S.C. §§1395 et. seq. D. Procurement of an Associated Capital Maintenance Product. In accordance with the terms of 49 U.S.C. §5326(d), the Recipient may, without prior Federal approval, procure an eligible associated capital maintenance product by contract directly with the original supplier or manufacturer of the item to be replaced, provided that the Recipient: (1) first certifies in writing that such manufacturer or supplier is the only source of that item and the price of that item is no higher than the price paid for that item by like customers, and (2) complies with applicable Buy America statutory and regulatory requirements. E. Transit Security. Each fiscal year, the Recipient agrees to spend at least one (1) percent of its funds authorized by 49 U.S.C. §5307 for transit security Projects, unless the Recipient has certified to FTA that such expenditures are not necessary. F. Restrictions on the Use of Formula Assistance for Operations. A Recipient permitted to use Federal assistance authorized for 49 U.S.C. §5307 to support operations agrees as follows: 1. To comply with the restrictions of 49 U.S.C. §§5307(b)(1) and 5307(f) in using urbanized area formula funds for operating assistance, unless permitted otherwise by FTA. 2. Financial assistance authorized by 49 U.S.C. §5307 may be applied to the Net Project Cost of the Recipient's operating expenses incurred during the Project time period set forth in the Approved Project Budget and, with FTA approval, may be extended to a later date to the extent permitted by law, provided that the applicable operating assistance limitation is not exceeded. G. Reporting Requirements. For each fiscal year, the Recipient agrees to conform, and assures that any transit operator to which the Recipient provides funds authorized by 49 U.S.C. §5307 will conform, to the reporting system and the uniform system of accounts and records required by 49 U.S.C. §5335(a) for FTA's national transit database and FTA regulations, "Uniform System of Accounts and Records and Reporting System," 49 C.F.R. Part 630, which includes various reports required for FTA's national transit database. H. Criminal Sanctions. The criminal sanctions of 49 U.S.C. §1001 apply to any submission or certificate provided for the Urbanized Area Formula Program authorized by 49 U.S.C. §5307. Section 28. Not Applicable Section 29. Special Requirements for Job Access and Reverse Commute Grant projects The Recipient agrees to comply with following requirements in administering Projects financed with Federal assistance authorized for section 3037 of TEA-21, 49 U.S.C. §5309 note: A. General Requirements. The Recipient agrees to comply with any applicable Federal requirements or guidance.that may be issued to implement the Job Access and Reverse Commute Grant Program, authorized by section 3037 of TEA 21, 49 U.S.C. §5309 note. B. Restrictions on the Use of Grant Funds. The Recipient agrees that it will not use any grant funds awarded for Section 3037 Projects to support the costs of planning or coordination activities, in compliance with section 3037(e) of TEA-21, 49 U.S.C. §5309 note. Section 30. Special Requirements for Over -the -Road Bus Accessibility Projects The Recipient agrees to comply with following requirements in administering Projects financed with Federal assistance authorized for section 3038 of TEA-21, 49 U.S.C. §5310 note: A. General Requirements. The Recipient agrees to comply with any applicable Federal requirements or guidance that may be issued to implement the Over -the -Road Bus Accessibility Program authorized by section 3038 of TEA-21, 49 U.S.C. §5310. B. Special Requirements. The Recipient agrees to comply with U.S. DOT regulations, "Transportation Services for Individuals. with Disabilities (ADA)," 49'C.F.R. Part 37, Subpart H, "Over -the -Road Buses," and joint U.S. Architectural and Transportation Barriers Compliance Board/U.S. DOT regulations, "Americans With Disabilities (ADA) Accessibility Specifications for Transportation Vehicles," 36 C.F.R. Part 1192 and 49 C.F.R. Part 38. C. FTA Notice. The provisions of FTA Notice, "Over -the -Road Bus Accessibility Program Grants," 65 Fed. Reg. 2772-2786 (January 18, 2000), and any subsequent revision thereto, supersede conflicting provisions of this Agreement. Section 31. Disputes, Breaches, Defaults, or Other Litigation The Recipient agrees that the State and FTA has a vested interest in the settlement of any dispute, breach, default, or litigation involving the Project. Accordingly: A. Notification. The Recipient agrees to notify the State of any current or prospective major dispute, breach, default, or litigation that may affect the State or Federal Government's interests in the Project or the administration or enforcement of laws or regulations. If the Recipient seeks to name the State or the Federal Government as a party to litigation for any reason, in any forum, the Recipient agrees to inform the State before doing so. B. Federal Interest in Recovery. The Federal Government retains the right to a proportionate share, based on the percentage of the Federal share awarded for the Project, of proceeds derived from any third party recovery, except that the Recipient may return any liquidated damages recovered to its Project Account in lieu of returning the Federal share to the Federal Government. C. Enforcement. The Recipient agrees to pursue all legal rights within any third party contract. D. State and FTA Concurrence. The State and FTA reserve the right to concur in any compromise or settlement of any claim involving the Project and the Recipient. End of agreement TO: Richard Burdine, Assistant City Manager FROM: John L. Wilson, General Manager DATE: August 1, 2002 SUBJECT: Agenda Comments for City Council Meeting on August 29, 2002. CITY OF LUBBOCK AGENDA ITEM SUMMARY II. CONSENT AGENDA ITEM #/SUBJECT: # Consider a resolution authorizing the Mayor to execute Contract No. 51305F-1017 with the Texas Department of Transportation (TxDOT) for operating assistance. BACKGROUND DISCUSSION: TxDOT is allocating $1,229,354.00 of public transportation funds to the City of Lubbock for operating assistance to maintain its public transportation system (Citibus) for Fiscal Year 2002 - 2003. The $1,229,354.00 is included in the Citibus budget for FY 2002-2003 that has been previously reviewed by City Council. The contract is effective from September 1, 2002, or when fully executed by both parties, and shall terminate on August 31, 2003. Acceptance of the contract will result in no additional cost to the City of Lubbock. The City of Lubbock was allocated approximately $1,744,000.00 for the biennium. However, due to the uncertainty of federal funding in the near future, Citibus requested that a larger portion of the award be allocated in FY 2002 - 2003. SUMMARY/RECOMMENDATION: Citibus recommends the approval of Contract No. 51305F-1017.