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HomeMy WebLinkAboutResolution - 5477 - Two Contracts - TDHCA - Weatherization Assistance Program - 05_08_1997RESOLUTIOK NO.5477. Item #21 May 8, 1997 WHEREAS, the City of Lubbock has been offered two (2) contracts from the Texas Department of Housing and Community Affairs to administer a program to weatherize the homes of low income families in Lubbock County; and WHEREAS, the City Council of the City of Lubbock believes it to be in the best interest of the health, safety, and welfare of the citizens of the County of Lubbock to make it possible for low income families to conserve energy and to reduce their energy costs; and WHEREAS, this is an annually renewable contract that the City of Lubbock has participated in for the last several years; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock two (2) contracts and all related documents with the Texas Department of Housing and Community Affairs for the Weatherization Assistance Program in the anticipated amount of Eighty-six Thousand Four Hundred Thirty and No/100 dollars ($86,430.00) for the period of April 1, 1997 through March 31, 1998. Said contracts are 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 8th day of may 91997. A Q /- h"Jk_ Kaytq Darnell, City Secretary APPROVED AS TO CONTENT: Doug an, Managing Director Health Community Services APPROVED AS TO FORM: ,Gt�,'4&1; - 44 l4r� William de Haas, Assistant City Attorney RESOLUTION N0.5477 Item #21 Ma 8, 1997 DOE ! OIL OVERCHARGE WEATHERIZATION ASSISTANCE 17ROGRAM ATTACHMENT A - BUDGET AND PERFORMANCE CONTRACTOR NAME: CITY OF LUBBOCK LETTER OF NOTIFICATION NUMBER: 0 TO CONTRACT NUMBER: 667048 ALLOCATION YEAR: 668 Period: April 1, 1996 - March 31,1998 SECTION 1. CONTRACT PERIOD The period for performance of this contract, unless earlier terminated, is amended to April 1, 1996 through March 31, 1998 (hereinafter the "Contract Period.") $33,510.00 WAP FUNDS CURRENTLY AVAILABLE.............................................................4101197 $443.00 TRAINING AND TECHNICAL ASSISTANCE FUNDS CURRENTLY AVAILABLE..........................................................................................4/01/97 $33,510.00 TOTAL ANTICIPATED WAP FUNDS.....................................................................3/31/98 $443.00 TOTAL ANTICIPATED TRAINING AND TECHNICAL ASSISTANCE FUNDS ...... 3/31/98 Additional funds may be obligated via Letter of Notification. Funds may only be obligated and expended during the current allocation period. Unexpended fund balances will be recaptured. C J1 1 kIW41741 I W.". DEPARTMENT % CATEGORIES SHARE ADMINISTRATION* $ 3,527.00 INSURANCE $ 1,500.00 FISCAL AUDIT $ 800.00 MATERIALS * * $ 9,976.00 40% PROGRAM SUPPORT / LABOR $14,964.00 60% HEALTH AND SAFETY * * * $ 2,743.00 10% SUB -TOTAL $33,510.00 TRAINING AND TECHNICAL ASSISTANCE $ 443.00 TOTAL $33,953.00 DWELLING UNITS TO COMPLETE 14 * Denotes maximum for administration based on 10.526315% of total allowable expenditures excluding travel for training. * * Denotes minimum of 40% of costs for materials, program support and labor shall be expended for materials. *** Denotes maximum aggregated units' total for allowable Health and Safety costs applied at 10% of total cost of completed units. Contractor's service area consists of the following Texas counties: Lubbock County Contractor shall provide weatherization program services to complete a minimum of 14 dwelling units during the allocation year. WAP costs per unit, including health and safety expenses, shall not exceed $1,959. SECTION 4. AUDIT This contract is amended by revising Section 15. Audit, to read hereafter as given below: A. An audit shall be made in accordance with Department's supplemental audit requirements and the Single Audit Act of 1984, 31 U.S.C. ch. 75; the Single Audit Act Amendments of 1996, 31 U.S.C. 7507, and either OMB Circular No. 128, "Audits of State and Local Governments", 24 C.F.R. Part 44, or OMB Circular No. 133, "Audits of Institutions of Higher Learning and Other Non Profit Institutions." The audit report must include verification of all expenditures by budget category, in accordance with the Budget of this contract. Contractor shall submit two (2) copies of the report of such audit to Department within thirty (30) days after the completion of the audit, but no later than twelve (12) months after the end of the audit period for state and local governments or no later than thirteen (13) months after the end of the audit period for nonprofit institutions. Contractor shall insure that the audit report is made available for public inspection within thirty (30) days after completion of the audit. Audits performed under this Section are subject to review and resolution by Department or its authorized representative. B. Department reserves the right to conduct additional financial and compliance audits of the funds received and performances rendered under this contract. Contractor agrees to permit Department or its authorized representative to audit Contractor's records and to obtain any documents, materials, or information necessary to facilitate such audit. C. Contractor shall be liable to Department for any costs disallowed pursuant to financial and compliance audit(s) of funds received under this agreement. Reimbursement to Department of such disallowed costs shall be paid by Contractor from funds which were not provided or otherwise made available to Contractor under this agreement. D. Contractor shall procure audit services through an open, competitive process at least once every four years. EFFECTIVE: APRII.1,1997 CITY OF :• APPROVED AS TO CONTENT: Doug Goo , Managing Director Health & munity Services Nye e q �itSecre TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS EXECUTIVE DIRECTOR APPROVED AS TO FORM: A4-�---- Z, A-, William de Haas Assistant City Attorney RESOLUTION NO.5477- Item 121 May 8, 1997 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS CONTRACT NO.667048 FOR THE DOE/OIL OVERCHARGE WEATHERIZATION ASSISTANCE PROGRAM SECTION 1. PARTIES TO CONTRACT This agreement is made by and between the Texas Department of Housing and Community Affairs, an agency of the State of Texas (hereinafter the "Department") and CITY OF LUBBOCK (hereinafter the "Contractor"). SECTION 2. CONTRACTOR PERFORMANCE Contractor shall, on an equitable basis throughout its service area, develop and implement a Weatherization Assistance Program (WAP) in accordance with Attachment A, Budget and Performance to assist in achieving a prescribed level of insulation in the dwellings of low- income persons, particularly the elderly and handicapped. Contractor shall implement WAP in accordance with the provisions of Part A of the Energy Conservation in Existing Buildings Act of 1976, as amended (42 U.S.C. 6861 et seq.), the U.S. Department of Energy ("DOE") regulations codified in 10 C.F.R. Parts 440 and 600, any applicable Office of Management and Budget ("OMB") Circulars, the Texas WAP State Plan, the Oil Overcharge Restitutionary Act (TEX. GOV'T CODE ANN. Chapter 2305), and the terms of this contract. SECTION 3. DEPARTMENT FINANCIAL OBLIGATIONS A. In consideration of Contractors satisfactory performance of this contract, Department shall reimburse Contractor for the actual allowable costs incurred by Contractor in the amount specified in Attachment A of this contract. B. Department's obligations under this contract are contingent upon the actual receipt by Department of adequate state and federal funds. If sufficient funds are not available, Department shall notify Contractor in writing within a reasonable time after such fact is determined. Department shall then terminate this contract and will not be liable for the failure to make any payment to Contractor under this contract. C. Department is not liable for any cost incurred by Contractor which: is incurred to weatherize a dwelling unit which is not an eligible dwelling unit as defined in 10 C.F.R. 440.22; 2. is incurred to weatherize a dwelling unit which is designated for acquisition or clearance by a federal, state, or local program within twelve months from the date weatherization of the dwelling unit is scheduled to be completed; 3. is incurred to weatherize a dwelling unit previously weatherized with WAP funds, except as provided for in 10 C. F. R.440. 1 8(e)(2); 4. is for Contractor's administrative costs incurred in excess of the maximum limitation set forth in Section 9 of this contract; 5. is not incurred during the allocation year; 6. is not reported to Department on a WAP Progress Expenditure Report/Monthly Funding Report, herein "WAPPER/MFR", within sixty (60) days of the termination of the allocation year; 7. is subject to reimbursement by a source other than Department; or 8. is made in violation of any provision of this contract or any provision of federal or state law or regulation, including, but not limited to, those enumerated in this contract. D. Contractor shall refund, within fifteen (15) days of Department's request, any sum of money paid to Contractor which Department determines has resulted in an overpayment or has not been spent in accordance with the terms of this contract. Department may offset or withhold any amount otherwise owed to Contractor under this contract against any amount owed by Contractor to Department arising under this or any other contract between the parties. SECTION 4. METHOD OF PAYMENT / CASH BALANCES A. Each month, Contractor may request an advance payment of WAP funds under Attachment A by submitting to Department at its offices in Travis County, Texas a WAPPER/MFR and a State of Texas Purchase Voucher. B. Contractor's requests for advances shall be for the minimum amount needed for the performance of this contract. In no event shall 'Contractor request an advance for more than 30 days of actual need. Contractor shall establish procedures to minimize the time elapsing between the transfer of funds from Department and the disbursal of such funds by Contractor. C. Notwithstanding Subsection 5(A), Department reserves the right to use a cost reimbursement method of payment for all funds if (1) Department determines that Contractor has maintained excess cash balances; (2) Department identifies any deficiency in the cash controls or financial management system maintained by Contractor; (3) Department determines that a cost reimbursement method would benefit the program; (4) Department's funding sources require the use of a cost reimbursement method; or (5) Contractor fails to comply with any of the reporting requirements of Section 11. D. All funds paid to Contractor under this contract are paid in trust for the exclusive benefit of the eligible recipients of the weatherization assistance program and for the payment of the allowable expenditures identified in Section 9. 2 SECTION 5. COST PRINCIPLES Except as specifically modified by law or the terms of this contract, in performing this contract, Contractor shall comply with the cost principles set forth in OMB Circular No. A-122 (non -profits) or OMB Circular No. A-87 (units of local governments). SECTION 6. UNIFORM ADMINISTRATIVE REQUIREMENTS Except as specifically modified by law or the terms of this contract, in performing this contract, Contractor shall comply with the uniform administrative requirements set forth in OMB Circular No. A-110 (non -profits) or the Common Rule, 10 C.F.R. 600.400 et seq. (units of local government). SECTION 7. TERMINATION AND SUSPENSION A. Department may terminate this contract, in whole or in part, at any time Department determines that there is cause for termination. Cause for termination includes but is not limited to Contractor's failure to comply with any term of this contract as specified in the Department's "Criteria and Procedures for Termination or Nonrenewal of Weatherization Subgrantee Contracts" -- Policy Issuance #95-12.8 and in the State Plan. Department shall notify Contractor in writing at least thirty (30) days before the date of termination. B. Nothing in this Section shall be construed to limit Department's authority to withhold payment and immediately suspend Contractor's performance of this contract if Department identifies possible instances of fraud, abuse, waste, fiscal mismanagement, or other serious deficiencies in Contractor's performance. Suspension shall be a temporary measure pending either corrective action by Contractor or a decision by Department to terminate this contract. C. Department shall not be liable for any costs incurred by Contractor after termination or during suspension of this contract. Notwithstanding the termination or suspension of this contract, Contractor shall not be relieved of any liability for damages due to Department by virtue of any breach of this contract by Contractor. Department may withhold any payment otherwise due to Contractor until such time as the exact amount of damages owed to Department by Contractor is determined and paid. SECTION 8 ALLOWABLE EXPENDITURES A. The allowability of Contractor's costs incurred in the performance of this contract shall be determined in accordance with the provisions of Section 5 and the regulations set forth in 10 C.F.R. 440.18, subject to the limitations and exceptions set forth in this Section. B. Allowable WAP expenditures under Attachment A include: (1) the purchase and delivery of weatherization materials as defined in 10 C.F.R. 440.3, but not to include storm doors; (2) labor costs in accordance with 10 C.F.R. 440.19; (3) the cost of weatherization materials and labor for heating & cooling system tune ups, repairs, modification, or replacements if such will result in improved energy efficiency as demonstrated by Savings to Investment Ratio of 1 or better in the EASY audit; (4) transportation of weatherization and repair materials, tools, equipment, and work crews to a storage site and to the site of weatherization work; (5) maintenance, operation, and insurance of vehicles used to transport weatherization materials; (6) maintenance of tools and equipment; (7) purchase or lease of tools, equipment, and vehicles (purchase of vehicles must be approved in advance by DOE); (8) employment of on -site supervisory personnel; (9) storage of weatherization materials, tools, and equipment; (10) the cost of incidental repairs (such as repairs to roofs, walls, floors, and other parts of a dwelling unit) if such repairs are necessary for the effective performance or preservation of weatherization materials; and (11) allowable health and safety measures. C. PROVIDED THAT: (1) If incidental repairs are necessary to make the installation of the weatherization materials effective, the cost of incidental -repair materials charged to WAP funds awarded under Attachment A shall not exceed the cost of weatherization materials charged to WAP funds. (2) Contractor shall weatherize eligible dwelling units using only weatherization materials which meet or exceed the standards prescribed by DOE in 10 C.F.R. Part 440, Appendix A and are installed in compliance with the Materials Installation Standards Manual. D. Administrative costs incurred by Contractor in performing this contract are to be based on actual expenditures and shall be allowed up to the amount outlined in Section 4. Allowable administrative costs may include reasonable costs associated with Contractor's administrative personnel, travel (out of service area), office space, equipment, and supplies which are necessary for the administration of WAP. Administrative costs are earned based upon the allowable percentage of total allowable expenditures, excluding the allowance for Department / DOE Training Travel. E. The cost of liability insurance for the weatherization program for personal injury and for property damage, not to exceed Fifteen Hundred Dollars ($1,500.00) shall be an allowable WAP expenditure under Attachment A. Contractor may request a written waiver of the limit on liability insurance. The waiver request must provide price quotes from at least three (3) insurance carriers. Amounts in excess of the $1,500 are to be charged to the administrative category. F. The cost for supporting fiscal audit expenses for the weatherization program not to exceed Eight Hundred Dollars ($800.00) shall be an allowable WAP expenditure under Attachment A. G. The cost of carrying out low-cost/no-cost weatherization activities not to exceed Fifty Dollars ($50.00) per dwelling unit, in accordance with 10 C.F.R. 440.20, shall be an allowable WAP expenditure under Attachment A. H. To the maximum extent practicable, Contractor shall utilize funds provided herein for the purchase of weatherization materials. Contractor may use for the purchase and 4 delivery of weatherization materials any or all of the funds allowed for administrative purposes under this contract. I. To the maximum extent practicable, Contractor shall secure the services of (1) volunteers, (2) training participants, and (3) public service employment workers assisted pursuant to the Job Training Partnership Act, to weatherize dwelling units under the direction of qualified supervisors. SECTION 9. RECORD KEEPING REQUIREMENTS A. Contractor shall comply with the record keeping requirements set forth at 10 C.F.R. 440.24 and with such additional record keeping requirements as specified by Department. B. For each dwelling unit weatherized with funds received from WAP under this contract, Contractor shall maintain a file containing the following information: (1) completed Application for Weatherization Services (Department form); (2) eligibility documentation (proof of income eligibility shall consist of checks, check stubs, award letters, employer statements, or other similar documents including total income and public assistance payments); no dwelling unit shall be weatherized without documentation that the dwelling unit is an eligible dwelling unit as defined in 10 C.F.R. 440.22; (3) Building Weatherization Report (Department form) to include certification of final inspection; (4) invoices of materials purchased and/or inventory removal sheets; (5) invoices of labor; (6) Landlord Agreement for (including Exhibits A and B), Landlord Financial Participation For and Permission to conduct Energy Audit form (Department form) if a rental unit; (7) Self-help Certification (Department form), if applicable; (8) Notice of Denial (Department form) if applicable; (9) Building Assessment form; (10) Attic Inspection (Department form); (11) Justification for Omission of Priorities (Department form), if applicable; (12) Blower Door Data Sheet; and (13) Other forms as may be required via the Issuance System. 5 WAP unit files for this contract shall be kept separate from LIHEAP WAP files and each shall be identified with allocation year number followed by "DOE-WAP". A DOE-WAP file that has EWAP funds expended on it shall be maintained in the same file with the DOE-WAP with the same job number as the DOE but labeled allocation year number followed by "DOE-EWAP". C. Materials standards documentation for weatherization materials purchased under this contract. These standards must meet the requirements as per Appendix A of 10 CFR 440 and the Material Installation Standards Manual. D. Contractor shall give the federal and state funding agencies, the Comptroller General of the United States, and Department, access to and the right to reproduce all records pertaining to this contract. All such records shall be maintained for at least three years after final payment has been made and all other pending matters are closed. Contractor shall include the requirements of this Subsection in all subcontracts. E. All weatherization assistance program records maintained by Contractor, except records made confidential by law, shall be available for inspection by the public during Contractor's normal business hours to the extent required by the Texas Public Information Act, TEX. GOV'T CODE ANN. Chapter 551. SECTION 10. REPORTING REQUIREMENTS A. Contractor shall submit a WAPPER/MFR for each month of the allocation period. Such monthly reports must be received by Department no later than the 20th day of the following month. Expenditure reports are due even if Contractor has no new activity to report during the month. All reports shall be submitted electronically. B Contractor shall submit to Department within sixty (60) days following the date of termination of this contract final expenditure reports utilizing the WAPPER/MFR. The failure of Contractor to provide a full accounting of all funds expended under this contract shall be sufficient reason for Department to deny or terminate any future weatherization program contracts to Contractor. C. Contractor shall submit to Department no later than sixty (60) days after the end of the allocation year an inventory of all vehicles, tools, and equipment with a unit acquisition cost of $500.00 or more and a useful life of more than one year, if purchased in whole or in part with funds received under this or previous weatherization assistance program contracts. The inventory shall reflect the vehicles, tools, and equipment on hand as of the last day of the allocation year. D. Contractor shall submit such other reports, data, and information on the performance of this contract as may be required by DOE pursuant to 10 C.F.R. 440.25, or by Department. E. If Contractor fails to submit, in a timely and satisfactory manner, any report or response required by this contract, including responses to monitoring reports, Department may withhold payments otherwise due Contractor hereunder. Payments may be withheld until such time as the delinquent report or response is received by Department. If the delinquent report or response is not received within Department may suspend or terminate this contract. Program funds from Department over two or more al or this contract suspended or terminated by Con response (including a report of audit) past due from a SECTION 11. CHANGES AND AMENDMENTS Any change in the terms of this contract is required by regulation is automatically incorporated herein effective o or regulation. Except as otherwise specifically pro% terms of this contract shall be by amendment hereto in v� this contract or by a Letter of Notification (LON). SECTION 12. DEPARTMENT ISSUANCES -five (45) days of its due date, Contractor receives Weatherization ion years, funds may be withheld :)r's failure to submit a report or allocation year. change in state or federal law or the date designated by such law led herein any other change in the Ling and executed by both parties to Department may issue directives which serve to interpre or clarify the terms of this contract. Such directives shall be issued by Department in the form of WAP Policy Issuances. Issuances shall not alter the terms of this contract so as to relieve Department of any obligation of reimbursement of an allowable cost incurr�d by Contractor prior to the effective date of the Issuance. All WAP Policy Issuances promul ated by Department, whether before or after the commencement date of this contract, shall g vem the performance of this contract until specifically rescinded by Department. SECTION 13. INDEPENDENT CONTRACTOR It is agreed that Contractor is an independent contractor. To the extent allowed by law, Contractor agrees to hold Department harmless and inde nify it against any disallowed costs or other claims asserted by any person in connection with the services to be performed by Contractor under this contract. SECTION 14. PROCUREMENT STANDARDS & SU A. Contractor shall develop and implement procurement procedures which conform with the uniform administrative requirements reference in Section 7. Contractor shall not procure supplies, equipment, materials, or services exce t in accordance with its procurement procedures and WAP Policy Issuance #88-10.1. All proc irement contracts, other than "small purchases" as defined in WAP Policy Issuance #88- 0.1, shall be in writing and shall contain the provisions required by WAP Policy Issuan 1 #88-10.1. Contractor must obtain advance written permission from DOE through Departm nt before purchasing any vehicle. B. Contractor shall ensure that its subcontractors co ply with all applicable terms of this contract as if the performance rendered by the subcontractor was being rendered by Contractor. Contractor shall inspect all subcontractors' work and shall be responsible for ensuring that it is completed in a good and workman -like manner. SECTION 15. AUDIT A. Contractor shall arrange for the performance of an annual financial and compliance audit of the funds received under this contract. The audit shall be made in accordance with the Single Audit Act of 1984, 31 U.S.C. Sec. 7501 (hereinafter the "Audit Act"), OMB Circular No. A-128, "Audit Requirements for State and Local Governments", or OMB Circular No. A- 133 "Audits of Institutions of Higher Education and Other Nonprofit Organizations", the Uniform Grant Management Standards, Generally Accepted Government Auditing Standards and Department's supplemental audit requirements. Contracts for audit services shall include a reference to the Audit Act and OMB Circular Nos. A-128 or A- 133. Contractor shall take any reasonable action required by Department to facilitate the performance of audit(s) conducted pursuant to this Section. B. Contractor shall submit three (3) copies of the report of such audit to Department within the time limit required by the "Audit Act". Audits performed under this section are subject to review and resolution by Department or its authorized representatives. C. Contractor shall take immediate corrective action after issuance of the audit report if instances of material noncompliance with laws, regulations or this contract are discovered. Contractor shall be liable to Department for any costs disallowed pursuant to the audit(s) of funds received under this contract. Repayment of disallowed costs shall be made by Contractor from funds which were not made available to Contractor under any contract with Department. SECTION 16. PROPERTY MANAGEMENT A. Contractor acknowledges that any vehicles, tools, and equipment with a unit acquisition cost of $500.00 or more and a useful life of more than one year, if purchased in whole or in part with funds received under this or previous weatherization assistance program contracts are not assets of either the contractor or the Department but are held in trust for the Weatherization Assistance Program and as such are assets of the Program. B. Contractor shall develop and implement a property management system which conforms with the uniform administrative requirements referenced in Section 7. Contractor shall not use, transfer, or dispose of any property acquired in whole or in part with funds provided under this or a previous weatherization assistance program contract except in accordance with its own property management system and Department Issuances. C. Contractor shall establish adequate safeguards to prevent loss, damage, or theft of property acquired hereunder and shall promptly report to Department any loss, damage, or theft of property with an acquisition cost of Five Hundred Dollars ($500.00) or more. D. In addition to the inventory of vehicles tools, and equipment required under Section 11, Contractor shall take a physical inventory of all WAP materials and shall reconcile the results with its property records at least once every year. Any differences between quantities determined by the inventory and those shown in the property records shall be investigated by Contractor to determine the cause of the difference. SECTION 17. INSURANCE REQUIREMENTS Contractor shall maintain adequate personal injury and property damage liability insurance or, if Contractor is a unit of local government, sufficient self insurance reserves to protect against the hazards arising out of or in connection with the performance of this contract. SECTION 18. LITIGATION AND CLAIMS Contractor shall give Department immediate written notice of any claim or action filed with a court or administrative agency against Contractor and arising out of the performance of this contract or any subcontract hereunder. Contractor shall furnish to Department copies of all pertinent papers received by Contractor with respect to such action or claim. SECTION 19. TECHNICAL ASSISTANCE AND MONITORING Department or its designee may conduct periodic on -site monitoring and evaluation of the efficiency, economy, and effectiveness of Contractor's performance of this contract. Department will advise Contractor in writing of any deficiencies noted during such monitoring. Department may provide technical assistance to Contractor and may require changes in Contractor's accounting, personnel, procurement, and management procedures in order to correct any deficiencies noted. Contractor may be required by Department to return to dwelling units to correct identified problems. Department may conduct follow-up visits to review and assess the efforts Contractor has made to correct previously noted deficiencies. Department may withhold funds, place Contractor on a cost reimbursement basis, deobligate funds, suspend performance, terminate this contract, or invoke other remedies in the event monitoring reveals material deficiencies in Contractor's performance or if Contractor fails to correct any deficiency within a reasonable period of time. SECTION 20. LEGAL AUTHORITY A. Contractor represents that it possesses the practical ability and the legal authority, to enter into this contract, receive and manage the funds authorized by this contract, and to perform the services Contractor has obligated itself to perform under this contract. B. The person signing this contract on behalf of Contractor hereby warrants that he/she has been authorized by Contractor to execute this contract on behalf of Contractor and to bind Contractor to all terms herein set forth. C. Department shall have the right to suspend or terminate this contract if there is a dispute as to the legal authority of either Contractor or the person signing this contract to enter into this contract or to render performances hereunder. Should such suspension or termination occur, contractor is liable to Department for any money it has received for performance of the provisions of this contract. SECTION 21. PREVENTION OF FRAUD AND ABUSE A. Contractor shall establish, maintain, and utilize internal control systems and procedures sufficient to prevent, detect, and correct incidents of waste, fraud, and abuse in WAP and to provide for the proper and effective management of all program and fiscal activities funded by this contract. Contractor's internal control systems and all transactions and other significant events must be clearly documented and the documentation made readily available for monitoring by Department. B. Contractor shall give Department complete access to all of its records, employees, and agents for the purpose of monitoring or investigating the weatherization program. Contractor shall fully cooperate with Department's efforts to detect, investigate, and prevent waste, fraud, and abuse. Contractor shall immediately notify the Department of any identified instances of waste, fraud, or abuse. C. Contractor may not discriminate against any employee or other person who reports a violation of the terms of this contract or of any law or regulation to Department or to any appropriate law enforcement authority, if the report is made in good faith. SECTION 22. CONFLICT OF INTEREST/NEPOTISM A. Contractor represents that neither it nor any member of its governing body presently has any interest or shall acquire any interest in, directly or indirectly, which would conflict with the performance of this contract and that no person having such interest shall be employed by Contractor or appointed as a member of Contractor's governing body. B. Contractor shall establish safeguards to prohibit its employees from using their positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business or other ties. C. Contractor agrees that it will comply with TEX. GOV'T CODE ANN. Chapter 573 by ensuring that no officer, employee, or member of the governing body of Contractor shall vote for 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 officer or employee authorized to employ or supervise such person. This prohibition shall not prohibit the continued employment of a person who has been continuously employed for a period of two years prior to the election or appointment of the officer, employee, or governing body member related to such person in the prohibited degree. SECTION 23. POLITICAL ACTIVITY AND LOBBYING A. No funds provided under this contract may be used to attempt to influence in any manner a member of Congress to favor or oppose any legislation or appropriation by Congress, nor to lobby state or local elected officials. 10 B No federal appropriated funds may be paid, by or on behalf of Contractor, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. C. If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, Contractor shall complete and submit a Certification Regarding Lobbying form in accordance with its instructions. SECTION 24. NON-DISCRIMINATION AND EQUAL OPPORTUNITY No person shall on the ground of race, color, religion, sex, national origin, age, handicap, political affiliation or belief be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied employment in the administration of or in connection with any program or activity funded in whole or in part with funds made available under this contract. SECTION 25. SPECIAL COMPLIANCE PROVISIONS Contractor shall comply with the requirements of all applicable laws and regulations, including those specified in 10 C.F.R. Sec. 600.436 (i). SECTION 26. TRAINING AND TECHNICAL ASSISTANCE FUNDS Training and technical assistance funds shall be used only for Department and/or DOE training events. Contractor shall adhere to either it's own board approved travel policy or the State of Texas travel policies as well as to Policy Issuance #95-16.3. SECTION 27. MAINTENANCE OF EFFORT Funds provided to Contract under this contract may not be substituted for funds or resources from any other source nor in any way serve to reduce the funds or resources which would have been available to or provided through Contractor had this contract never been executed. SECTION 28. DEBARRED AND SUSPENDED PARTIES Contractor must not make any award (subgrant or contract) to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, "Debarment and Suspension." 11 SECTION 29. NO WAIVER No right or remedy given to Department by this contract shall preclude the existence of any other right or remedy, nor shall any action taken in the exercise of any right or remedy be deemed a waiver of any other right or remedy. The failure of Department to exercise any right or remedy on any occasion shall not constitute a waiver of Department's right to exercise that or any other right or remedy at a later time. SECTION 30. PRIOR ORAL AND WRITTEN AGREEMENTS All prior oral or written agreements between the parties hereto relating to the subject matter of this contract have been reduced to writing and are contained herein. SECTION 31. SEVERABILITY If any portion of this contract is held to be invalid by a court of competent jurisdiction, the remainder of it shall remain valid and binding. SIGNED this Sth day of may .1997. CITY OF LUBBOCK TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS BY: T.D.H.C.A. - Executive Director This contract is not effective unless signed by the Executive Director of the Department or his authorized designee. APPROVED AS TO CONTENT: C)CJ�4� Doug Goodpifin, Managing Director Health & C6dmunity Services ATTEST: Tom-/ Kayt ie Darnell City Secretary 12 APPROVED AS TO FORM: lve",O?k� William de Haas Assistant City Attorney RESOLUTION NO.5477 Item #21 May 8, 1997 LIHEAP WEATHERIZATION ASSISTANCE / ENHANCED WEATHERIZATION ASSISTANCE PROGRAM ATTACHMENT A - BUDGET AND PERFORMANCE CONTRACTOR NAME: CITY OF LUBBOCK AMENDMENT NUMBER: 1 TO CONTRACT NUMBER: 817048 ALLOCATION YEAR: 818 PERIOD: April 1,1996 - March 31, 1998 SECTION 1. CONTRACT PERIOD The period for performance of this contract, unless earlier terminated, is amended to April 1, 1996 through March 31, 1998 (hereinafter the "Contract Period"). SECTION 2. DEPARTMENT FINANCIAL OBLIGATIONS $52,477.00 LIHEAP FUNDS CURRENTLY AVAILABLE .........................4/1/97 $52,477.00 TOTAL ANTICIPATED LIHEAP FUNDS..................Through 3/31/98 Additional funds may be obligated via Letter of Notification. Funds may only be obligated and expended during the current allocation period. Unexpended fund balances will be recaptured. 1 /; -C 1 1, CATEGORIES DEPARTMENT SHARE % ------------------------------------------------------------------------------------- ADMINISTRATION * $2,762.00 MATERIALS ** $17,898.00 40% PROGRAM SUPPORT/LABOR $26,846.00 60% HEALTH AND SAFETY *** $ 4,972.00 10% TOTAL $52,477.00 DWELLING UNITS TO COMPLETE 25 * Denotes maximum for administration based on 5.26315% of total allowable expenditures. * * Denotes minimum of 40% of materials, program support and labor shall be expended for materials. * * * Denotes maximum aggregated units' total for allowable Health and Safety * * * Denotes maximum aggregated units' total for allowable Health and Safety costs applied at 10% of the total cost of completed units. SECTION 3 PERFORMANCE Contractor's service area consists of the following Texas counties: Lubbock County Contractor shall provide weatherization program services to complete a minimum of 25 dwelling units during the allocation year. The cost per unit, including health and safety expenses, shall not exceed $1,959. SECTION 4. AUDIT This contract is amended by revising Section 15. Audit, to read hereafter as given below: A. An audit shall be made in accordance with Department's supplemental audit requirements and the Single Audit Act of 1984, 31 U.S.C. ch. 75; the Single Audit Act Amendments of 1996, 31 U.S.C. 7507, and either OMB Circular No. 128, "Audits of State and Local Governments", 24 C.F.R. Part 44, or OMB Circular No. 133, "Audits of Institutions of Higher Learning and Other Non Profit Institutions." The audit report must include verification of all expenditures by budget category, in accordance with the Budget of this contract. Contractor shall submit two (2) copies of the report of such audit to Department within thirty (30) days after the completion of the audit, but no later than twelve (12) months after the end of the audit period for state and local governments or no later than thirteen (13) months after the end of the audit period for nonprofit institutions. Contractor shall insure that the audit report is made available for public inspection within thirty (30) days after completion of the audit. Audits performed under this Section are subject to review and resolution by Department or its authorized representative. B. Department reserves the right to conduct additional financial and compliance audits of the funds received and performances rendered under this contract. Contractor agrees to permit Department or its authorized representative to audit Contractor's records and to obtain any documents, materials, or information necessary to facilitate such audit. C. Contractor shall be liable to Department for any costs disallowed pursuant to financial and compliance audit(s) of funds received under this agreement. Reimbursement to Department of such disallowed costs shall be paid by Contractor from funds which were not provided or otherwise made available to Contractor under this agreement. D. Contractor shall procure audit services through an open, competitive process at least once every four years. SECTION 5. CHANGES AND AMENDMENTS This contract is amended by revising Section 11, Changes and Amendments, to read hereafter as given below: Any change in the terms of this contract required by a change in state or federal law or regulation is automatically incorporated herein effective on the date designated by such law or regulation. Except as otherwise specifically provided herein, any other change in the terms of this contract shall be by amendment hereto in writing and executed by both parties to this contractor or by a Letter of Notification (LON). SECTION 6. ENHANCED WEATHERIZATION ASSISTANCE PROGRAM This contract is amended by deleting all references to LIHEAP Enhanced Weatherization Assistance Program within this contract. Beginning with Allocation Year 818 - April 1, 1997 and forward, the LIHEAP Enhanced Weatherization Assistance Program no longer exists. SECTION 7. DEPARTMENT FINANCIAL OBLIGATION This contract is amended by revising Section 3 C (1), to read hereafter as given below: C. Department is not liable for any cost incurred by Contractor which: (1) is incurred to weatherize a dwelling unit which is not an eligible dwelling unit as defined in 10 C.F.R. §440.22(a)(1); EFFECTIVE: APRIL 1, 1997 CITY OF _• APPROVED AS TO CONTENT: Doug Goo , Managing Director Health & munity Services ATTEST: Kayt Darnell City ecretary TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS EXECUTIVE DIRECTOR APPROVED AS TO FORM: William de Haas Assistant City Attorney TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS CONTRACT NO.817048 FOR THE LIHEAP WEATHERIZATION ASSISTANCE / ENHANCED WEATHERIZATION ASSISTANCE PROGRAMS SECTION 1. PARTIES TO CONTRACT This agreement is made by and between the Affairs, an agency of the State of Texas LUBBOCK (hereinafter the "Contractor"). Texas Department of Housing and Community (hereinafter the "Department") and CITY OF SECTION 2. CONTRACTOR PERFORMANCE Contractor shall, on an equitable basis throughout its service area, develop and implement a Weatherization Assistance Program (WAP) and Enhanced Weatherization Assistance Program (EWAP) in accordance with Attachment A, Budget and Performance to assist in achieving a prescribed level of insulation in the dwellings of low-income persons, particularly the elderly, handicapped and households with small children. Contractor shall implement the weatherization program in accordance with the provisions of Part A of the Energy Conservation in Existing Buildings Act of 1976, as amended (42 U.S.C. 6861 et seq.), the U.S. Department of Energy ("DOE") regulations codified in 10 C.F.R. Parts 440 and 600, any applicable Office of Management and Budget ("OMB") Circulars, the Texas Weatherization Assistance Program State Plan, the LIHEAP State Plan, The Low -Income Home Energy Assistance Act of 1981 (42 U.S.C.8621 et seq.) the implementing regulations in 45 C.F.R. Part 96, and the terms of this contract. SECTION 3. DEPARTMENT FINANCIAL OBLIGATIONS A. In consideration of Contractor's satisfactory performance of this contract, Department shall reimburse Contractor for the actual allowable costs incurred by Contractor in the amount specified in Attachment A of this contract. B. Department's obligations under this contract are contingent upon the actual receipt by Department of federal LIHEAP program funds. If sufficient funds are not available, Department shall notify Contractor in writing within a reasonable time after such fact is determined. Department shall then terminate this contract and will not be liable for the failure to make any payment to Contractor under this contract. C. Department is not liable for any cost incurred by Contractor which: (1) is incurred to weatherize a dwelling unit which is not an eligible dwelling unit as defined in 10 C.F.R. 440.22; (2) is incurred to weatherize a dwelling unit which is designated for acquisition or clearance by a federal, state, or local program within twelve months from the date weatherization of the dwelling unit is scheduled to be completed; (3) is incurred to weatherize a dwelling unit previously weatherized with weatherization assistance program funds, except as provided for in 10 C.F. R.440.18(e)(2); (4) is for Contractor's administrative costs incurred in excess of the maximum limitation set forth in Section 9 of this contract; (5) is not incurred during the allocation year; (6) is not reported to Department on a LIHEAP Progress Expenditure Report/Monthly Funding Report, herein "LI-WAPPER/MFR" or a LIHEAP Enhanced Progress Expenditure Report/Monthly Funding Report, herein "LI- EWAPPER/MFR", within sixty (60) days of the termination of this allocation year; (7) is charged to WAP, reported as such to the Department, and later changed and charged to EWAP. Charges made to EWAP and reported as such to the Department may not be later changed and charged to WAP. (8) is subject to reimbursement by a source other than Department; or (9) is made in violation of any provision of this contract or any provision of federal or state law or regulation, including, but not limited to those enumerated in this contract. D. Contractor shall refund, within fifteen (15) days of Department's request, any sum of money paid to Contractor which Department determines has resulted in an overpayment or has not been spent in accordance with the terms of this contract. Department may offset or withhold any amount otherwise owed to Contractor under this contract against any amount owed by Contractor to Department arising under this or any other contract between the parties. SECTION 4. METHOD OF PAYMENT / CASH BALANCES A. Each month, Contractor may request an advance payment of LIHEAP funds under Attachment A by submitting to Department at its offices in Travis County, Texas a LI-WAPPER/MFR and LI-EWAPPER/MFR, and one State of Texas Purchase Voucher. B. Contractor's requests for advances shall be for the minimum amount needed for the performance of this contract. In no event shall Contractor request an advance for more than 30 days actual need. Contractor shall establish procedures to 2 minimize the time elapsing between the transfer of funds from Department and the disbursal of such funds by Contractor. C. Notwithstanding Subsection 5(A), Department reserves the right to use a cost reimbursement method of payment for all funds if (1) Department determines that Contractor has maintained excess cash balances; (2) Department identifies any deficiency in the cash controls or financial management system maintained by Contractor; (3) Department determines that a cost reimbursement method would benefit the program (4) Department's funding sources require the use of a cost reimbursement method; or (5) Contractor fails to comply with any of the reporting requirements of Section 11. D. All funds paid to Contractor under this contract are paid in trust for the exclusive benefit of the eligible recipients of the weatherization assistance program and for the payment of the allowable expenditures identified in Section 9. SECTION 5. COST PRINCIPLES Except as specifically modified by law or the terms of this contract, in performing this contract, Contractor shall comply with the cost principles set forth in OMB Circular No. A-122 (non -profits) or OMB Circular No. A-87 (units of local government). SECTION 6. UNIFORM ADMINISTRATIVE REQUIREMENTS Except as specifically modified by law or the terms of this contract, in performing this contract, Contractor shall comply with the uniform administrative requirements set forth in OMB Circular No. A-110 (non -profits) or the Common Rule, 10 C.F.R. 600.400 et seq. (units of local government). SECTION 7. TERMINATION AND SUSPENSION A. Department may terminate this contract, in whole or in part, at any time Department determines that there is cause for termination. Cause for termination includes but is not limited to Contractor's failure to comply with any term of this contract as specified in the Department's "Criteria and Procedures for Termination or Nonrenewal of Weatherization Subgrantee Contracts" —Policy Issuance #95-12.8 and in the State Plan. Department shall notify Contractor in writing at least thirty (30) days before the date of termination. B. Nothing in this Section shall be construed to limit Department's authority to withhold payment and immediately suspend Contractor's performance of this contract if Department identifies possible instances of fraud, abuse, waste, fiscal mismanagement, or other serious deficiencies in Contractor's performance. Suspension shall be a temporary measure pending either corrective action by Contractor or a decision by Department to terminate this contract. C. Department shall not be liable for any costs incurred by Contractor after termination or during suspension of this contract. Notwithstanding the termination or suspension of this contract, Contractor shall not be relieved of any liability for damages due to Department by virtue of any breach of this contract by Contractor. Department may withhold any payment otherwise due to Contractor until such time as the exact amount of damages owed to Department by Contractor is determined and paid. SECTION 8. ALLOWABLE EXPENDITURES A. The allowance of Contractor's costs incurred in the performance of this contract shall be determined in accordance with the provisions of Section 5 and the regulations set forth in 10 C.F.R. 440.18, subject to the limitations and exceptions set forth in this Section. B Allowable WAP expenditures under Attachment A include: (1) the purchase and delivery of weatherization materials as defined in 10 C.F.R. 440.3, but not to include storm doors; (2) labor costs in accordance with 10 C.F.R. 440.19; (3) the cost of weatherization materials and labor for heating & cooling system tune ups, repairs, modification, or replacements if such will result in improved energy efficiency as demonstrated by Savings to Investment Ratio of 1 or better in the EASY audit; (4) transportation of weatherization and repair materials, tools, equipment, and work crews to a storage site and to the site of weatherization work; (5) maintenance, operation, and insurance of vehicles used to transport weatherization materials; (6) maintenance of tools and equipment; (7) purchase or lease of tools, equipment, and vehicles (leasing only); (8) employment of on -site supervisory personnel; (9) storage of weatherization materials, tools, and equipment; (10) the cost of incidental repairs (such as repairs to roofs, walls, floors, and other parts of a dwelling unit) if such repairs are necessary for the effective performance or preservation of weatherization materials; and (11) the cost of eliminating health and safety hazards necessary for installation of weatherization materials. C. Allowable expenditures of EWAP funds awarded under Attachment A include: (1) the expenditures listed above in Subsection 9(B), (2) the cost of materials and labor for heating and cooling system tune-ups, repairs, modifications, or replacements if such will result in improved energy efficiency as demonstrated by an SIR of 1 or greater in the EASY audit or the current equipment poses a health or safety risk, and/or (3) health and safety of a dwelling unit. All expenditures of EWAP funds must be in conformity with any EWAP regulations or issuances promulgated by Department. D. Contractor shall weatherize eligible dwelling units using only weatherization materials which meet or exceed the standards prescribed by DOE in 10 C.F.R. Part 440, Appendix A. and are installed in compliance with the Materials Installation Standards Manual. E. Administrative costs incurred by Contractor in performing this contract are to be based on actual expenditures and shall be allowed up to the amount outlined in Section 4. Allowable administrative costs may include reasonable costs associated with 4 Contractor's administrative personnel, travel (out of service area), audit fees, office space, equipment, and supplies which are necessary for the administration of WAP and EWAP. Administrative costs are earned based upon the allowable percentage of total allowable expenditures. F. The cost of carrying out low-cost/no-cost weatherization activities not to exceed Fifty Dollars ($50.00) per dwelling unit, in accordance with 10 C.F.R. 440.20, shall be an allowable WAP expenditure under Attachment A. G. To the maximum extent practicable, Contractor shall utilize funds provided herein for the purchase of weatherization materials. Contractor may use for the purchase and delivery of weatherization materials any or all of the funds allowed for administrative purposes under this contract. H. To the maximum extent practicable, Contractor shall secure the services of (1) volunteers, (2) training participants, and (3) public service employment workers assisted pursuant to the Job Training Partnership Act, to weatherize dwelling units under the direction of qualified supervisors. SECTION 9. RECORD KEEPING REQUIREMENTS A. Contractor shall comply with the record keeping requirements set forth at 10 C.F.R. 440.24 and with such additional record keeping requirements as specified by Department. B. For each dwelling unit weatherized with funds received from WAP under this contract, Contractor shall maintain a file containing the following information: (1) completed Application for Weatherization Services (Department form); (2) eligibility documentation (proof of income eligibiliy shall consist of checks, check stubs, award letters, employer statements, or other similar documents including total income and public assistance payments); no dwelling unit shall be weatherized without documentation that the dwelling unit is an eligible dwelling unit as defined in 10 C.F.R. 440.22; (3) Building Weatherization Report (Department form) to include certification of final inspection; (4) invoices of materials purchased or inventory removal sheets; (5) invoices of labor, (6) Landlord Agreement form (including Exhibits A and B), Landlord Financial Participation Form and Permission to Conduct Energy Audit form (Department form) if a rental unit; (7) Self-help Certification (Department form), if applicable; (8) Notice of Denial (Department form), if applicable; (9) Building Assessment form; (10) Attic Inspection (Department form); (11) Justification for Omission of Priorities (Department form), if applicable; (12) Blower Door Data Sheet; and (13) Other forms as required by the Issuance system. C. For each dwelling unit weatherized with funds received from EWAP under this contract, Contractor shall maintain a file containing the following information: (1) Assessment/Building Enhanced Weatherization Report with certification and final inspection (Department form); (2) Invoices for materials purchased or inventory removal sheets; (3) Invoices for labor; and (4) Other forms as required by the Issuance system. Both WAP and EWAP files shall be kept in the same folder and assigned the same numerical unit identification number, except that each number shall be preceded with allocation year number followed by °L-WAP" if it is a unit completed with WAP measures and allocation year number followed by °L-EWAP" if it is a unit completed with EWAP measures. D. Materials Standards - documentation of WAP materials meeting the required standard must be on file. E. Contractor shall give the federal and state funding agencies, the Comptroller General of the United States, and Department, access to and the right to reproduce all records pertaining to this contract. All such records shall be maintained for at least three years after final payment has been made and all other pending matters are closed. Contractor shall include the requirements of this Subsection in all subcontracts. F. All WAP and EWAP weatherization assistance program records maintained by Contractor, except records made confidential by law, shall be available for inspection by the public during Contractor's normal business hours to the extent required by the Texas Public Information Act, TEX. GOV'T CODE ANN. Chapter 551. SECTION 10. REPORTING REQUIREMENTS A. For each month of the allocation period, Contractor shall furnish Department with expenditure reports for the previous month by submitting a LI-WAPPER/MFR and LI-EWAPPER/MFR. Such monthly reports must be received by Department no later than the 20"' day of the following month. Expenditure reports are due even if Contractor has no new activity to report during the month. All reports shall be submitted electronically. B. Contractor shall submit to Department within sixty (60) days following the date of termination of the allocation period a final expenditure reports utilizing the LI- WAPPER/MFR and LI-EWAPPER/MFR. The failure of Contractor to provide a full accounting of all funds expended under this contract shall be sufficient reason for Department to deny or terminate any future weatherization program contracts to Contractor. C. Contractor shall submit to Department no later than sixty (60) days after the end of the allocation year an inventory of all vehicles, tools, and equipment with a unit acquisition cost of $500.00 or more and a useful life of more than one year, if purchased in whole or in part with funds received under this or previous weatherization assistance program contracts. The inventory shall reflect the tools, and equipment on hand as of the last day of the allocation year. D. Contractor shall submit such other reports, data, and information on the performance of this contract as may be required by DOE pursuant to 10 C.F.R. 440.25, by HHS or by the Department. E. If Contractor fails to submit, in a timely and satisfactory manner, any report or response required by this contract, including responses to monitoring reports, Department may withhold payments otherwise due Contractor hereunder. Payments may be withheld until such time as the delinquent report or response is received by Department. If the delinquent report or response is not received within forty-five (45) days of its due date, Department may suspend or terminate this contract. If Contractor receives WAP and EWAP funds from Department over two or more allocation years, funds may be withheld or this contract suspended or terminated by Contractor's failure to submit a report or response (including a report of audit) past due from a prior allocation year. SECTION 11. CHANGES AND AMENDMENTS Any change in the terms of this contract required by a change in state or federal law or regulation is automatically incorporated herein effective on the date designated by such law or regulation. Except as otherwise specifically provided herein, any other change in the terms of this contract shall be by amendment hereto in writing and executed by both parties to this contractor by a Letter of Notification (LON). SECTION 12. DEPARTMENT ISSUANCES Department may issue directives which serve to interpret or clarify the terms of this contract. Such directives shall be issued by Department in the form of WAP Policy Issuances. Issuances shall not alter the terms of this contract so as to relieve Department of any obligation of reimbursement of an allowable cost incurred by Contractor prior to the effective date of the Issuance. All WAP Policy Issuances promulgated by Department, whether before or after the commencement date of this contract, shall govern the performance of this contract until specifically rescinded by Department. SECTION 13. INDEPENDENT CONTRACTOR It is agreed that Contractor is an independent contractor. To the extent allowed by law, Contractor agrees to hold Department harmless and indemnify it against any disallowed costs or other claims asserted by any person in connection with the services to be performed by Contractor under this contract. SECTION 14. PROCUREMENT STANDARDS & SUBCONTRACTS A. Contractor shall develop and implement procurement procedures which conform with the uniform administrative requirements referenced in Section 7. Contractor shall not procure supplies, equipment, materials, or services except in accordance with its procurement procedures and WAP Policy Issuance #88-10.1. All procurement contracts, other than "small purchases" as defined in WAP Policy Issuance #88-10.1, shall be in writing and shall contain the provisions required by WAP Policy Issuance #88-10.1. B. Contractor shall ensure that its subcontractors comply with all applicable terms of this contract as if the performance rendered by the subcontractor was being rendered by Contractor. Contractor shall inspect all subcontractors' work and shall be responsible for ensuring that it is completed in a good and workman -like manner. SECTION 15. AUDIT A. Contractor shall arrange for the performance of an annual financial and compliance audit of the funds received under this contract. The audit shall be made in accordance with the Single Audit Act of 1984, 31 U.S.C. Sec. 7501 (hereinafter the "Audit Act"), OMB Circular No. A-128, "Audit Requirements for State and Local Governments", or OMB Circular No. A-133 "Audits of Institutions of Higher Education and Other Nonprofit Organizations", the Uniform Grant Management Standards, Generally Accepted Government Auditing Standards and Department's supplemental audit requirements. Contracts for audit services shall include a reference to the Audit Act and OMB Circular Nos. A-128 or A-133. Contractor shall take any reasonable action required by Department to facilitate the performance of audit(s) conducted pursuant to this Section. B. Contractor shall submit three (3) copies of the report of such audit to Department within the time limit required by the "Audit Act". Audits performed under this section are subject to review and resolution by Department or its authorized representatives. C. Contractor shall take immediate corrective action after issuance of the audit report if instances of material noncompliance with laws, regulations or this contract are discovered. Contractor shall be liable to Department for any costs disallowed pursuant to the audit(s) of funds received under this contract. Repayment of disallowed costs shall be made by Contractor from funds which were not made available to Contractor under any contract with Department. SECTION 16. PROPERTY MANAGEMENT A. Contractor acknowledges that any vehicles, tools, and equipment with a unit acquisition cost of $500.00 or more and a useful life of more than one year, if purchased in whole or in part with funds received under this or previous weatherization assistance program contracts are not assets of either the contractor or the Department but are held in trust for the Weatherization Assistance Program and as such are assets of the Program. B. Contractor shall develop and implement a property management system which conforms with the uniform administrative requirements referenced in Section 7. Contractor shall not use, transfer, or dispose of any property acquired in whole or in part with funds provided under this or a previous weatherization assistance program contract except in accordance with its own property management system and Department Issuances. C. Contractor shall establish adequate safeguards to prevent loss, damage, or theft of property acquired hereunder and shall promptly report to Department any loss, damage, or theft of property with an acquisition cost of Five Hundred Dollars ($500.00) or more. D. In addition to the inventory of tools and equipment required under Section 11, Contractor shall take a physical inventory of all WAP materials and shall reconcile the results with its property records at least once every year. Any differences between quantities determined by the inventory and those shown in the property records shall be investigated by Contractor to determine the cause of the difference. SECTION 17. INSURANCE REQUIREMENTS Contractor shall maintain adequate personal injury and property damage liability insurance or, if Contractor is a unit of local government, sufficient self insurance reserves to protect against the hazards arising out of or in connection with the performance of this contract. SECTION 18. LITIGATION AND CLAIMS Contractor shall give Department immediate written notice of any claim or action filed with a court or administrative agency against Contractor and arising out of the performance of this contract or any subcontract hereunder. Contractor shall furnish to Department copies of all pertinent papers received by Contractor with respect to such action or claim. SECTION 19. TECHNICAL ASSISTANCE AND MONITORING Department or its designee may conduct periodic on -site monitoring and evaluation of the efficiency, economy, and effectiveness of Contractor's performance of this contract. Department will advise Contractor in writing of any deficiencies noted during such monitoring. Department may provide technical assistance to Contractor and may require changes in Contractor's accounting, personnel, procurement, and management procedures in order to correct any deficiencies noted. Contractor may be required by Department to return to dwelling units to correct identified problems. Department may conduct follow-up visits to review and assess the efforts Contractor has made to correct previously noted deficiencies. Department may withhold funds, place Contractor on a cost reimbursement basis, deobligate funds, suspend performance, terminate this contract, or invoke other remedies in the event monitoring reveals material deficiencies in Contractor's performance or if Contractor fails to correct any deficiency within a reasonable period of time. SECTION 20. LEGAL AUTHORITY A. Contractor represents that it possesses the practical ability and the legal authority, to enter into this contract, receive and manage the funds authorized by this contract, and to perform the services Contractor has obligated itself to perform under this contract. B. The person signing this contract on behalf of Contractor hereby warrants that he/she has been authorized by Contractor to execute this contract on behalf of Contractor and to bind Contractor to all terms herein set forth. C. Department shall have the right to suspend or terminate this contract if there is a dispute as to the legal authority of either Contractor or the person signing this contract to enter into this contract or to render performances hereunder. Should suspension or termination occur, contractor is liable to Department for any money it has received from Department for performance of the provisions of this contract. SECTION 21. PREVENTION OF FRAUD AND ABUSE A. Contractor shall establish, maintain, and utilize internal control systems and procedures sufficient to prevent, detect, and correct incidents of waste, fraud, and abuse in WAP and to provide for the proper and effective management of all program and fiscal activities funded by this contract. Contractor's internal control systems and all transactions and other significant events must be clearly documented and the documentation made readily available for monitoring by Department. B. Contractor shall give Department complete access to all of its records, employees, and agents for the purpose of monitoring or investigating the WAP and EWAP. Contractor shall fully cooperate with Department's efforts to detect, investigate, and 10 prevent waste, fraud, and abuse. Contractor shall immediately notify the Department of any identified instances of waste, fraud, or abuse. C. Contractor may not discriminate against any employee or other person who reports a violation of the terms of this contract or of any law or regulation to Department or to any appropriate law enforcement authority, if the report is made in good faith. SECTION 22. CONFLICT OF INTEREST/NEPOTISM A. Contractor represents that neither it nor any member of its governing body presently has any interest or shall acquire any interest in, directly or indirectly, which would conflict with the performance of this contract and that no person having such interest shall be employed by Contractor or appointed as a member of Contractor's governing body. B. Contractor shall establish safeguards to prohibit its employees from using their positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business or other ties. C. Contractor agrees that it will comply with TEX. GOV'T CODE ANN. Chapter 573 by ensuring that no officer, employee, or member of the governing body of Contractor shall vote for 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 officer or employee authorized to employ or supervise such person. This prohibition shall not prohibit the continued employment of a person who has been continuously employed for a period of two years prior to the election or appointment of the officer, employee, or governing body member related to such person in the prohibited degree. SECTION 23. POLITICAL ACTIVITY AND LOBBYING A. No funds provided under this contract may be used to attempt to influence in any manner a member of Congress to favor or oppose any legislation or appropriation by Congress, nor to lobby state or local elected officials. B. No federal appropriated funds may be paid, by or on behalf of Contractor, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal loan, the entering into any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. C. If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee 11 of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, Contractor shall complete and submit a Certification Regarding Lobbying form in accordance with its instructions. SECTION 24. NON-DISCRIMINATION AND EQUAL OPPORTUNITY No person shall on the ground of race, color, religion, sex, national origin, age, handicap, political affiliation or belief be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied employment in the administration of or in connection with any program or activity funded in whole or in part with funds made available under this contract. SECTION 25. SPECIAL COMPLIANCE PROVISIONS Contractor shall comply with the requirements of all applicable laws and regulations, including those specified in 10 C.F.R. Sec. 600.436(i). SECTION 26. MAINTENANCE OF EFFORT Funds provided to Contract under this contract may not be substituted for funds or resources from any other source nor in any way serve to reduce the funds or resources which would have been available to or provided through Contractor had this contract never been executed. SECTION 27. DEBARRED AND SUSPENDED PARTIES Contractor must not make any award (subgrant or contract) to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, "Debarment and Suspension." SECTION 28. NO WAIVER No right or remedy given to Department by this contract shall preclude the existence of any other right or remedy, nor shall any action taken in the exercise of any right or remedy be deemed a waiver of any other right or remedy. The failure of Department to exercise any right or remedy on any occasion shall not constitute a waiver of Department's right to exercise that or any other right or remedy at a later time. SECTION 29. PRIOR ORAL AND WRITTEN AGREEMENTS All prior oral or written agreements between the parties hereto relating to the subject matter of this contract have been reduced to writing and are contained herein. 12 SECTION 30. SEVERABILITY If any portion of this contract is held to be invalid by a court of competent jurisdiction, the remainder of it shall remain valid and binding. SIGNED this 8th day of May , 1997. CITY OF LUBBOCK TRIM, LKrIl 1� re—s�+t�T�•--- TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS EXECUTIVE DIRECTOR This contract in not effective unless signed by the Executive Director of the Department or his authorized designee. APPROVED AS TO CONTENT: Doug Goo , Managing Director Health & C66munity Services ATTEST: yt Darnell . City ecretary APPROVED AS TO FORM: William de Haas Assistant City Attorney 13