HomeMy WebLinkAboutResolution - 5763 - Contracts - Texas Dept. Of Economic Development - 02_12_1998RESOLUTION NO. 5763
Item #27
February 12, 1998
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 two contracts by and
between the City of Lubbock and Texas Department of Economic Development. 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 12th day of February 1998.
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NhNDY SITTON.WVOR
ATTEST:
KayKAJ Darndll
City Sderetary
APPROVED AS TO CONTENT:
Richard Burdine
Assistant City Manager
APPROVED AS TO FORM:
William de Haas
Assistant City Attorney
RESOLUTION NO. 5763
STATE OF TEXAS
DEPARTMENT OF ECONOMIC DEVELOPMENT
February 25, 1998
William de Haas
Assistant City Attorney
P.O. Box 2000
1625 13t" Street
Lubbock, Texas 79457
Re: Reese Center Defense Adjustment Assistance Grants
Dear Mr. de Haas:
We spoke recently regarding the two Defense Economic Adjustment Assistance Grant contracts
for the Institute of Environmental and Human Health in Lubbock. You expressed some concern
over the apparent contradiction between the termination date specified in Section 3 of each
contract and the length of time required for performance as required by the contracts.
This termination date fulfills the Department's need to have the duration of the contract be finite,
to help ensure that these legislatively appropriated funds are utilized in a reasonable amount of
time, and assure that a project of this nature is completed in a reasonable amount of time. In
some cases, as in these contracts, this date does not necessarily cover the amount of time
required to fully perform. Here, the reporting and recoupment provisions in particular will
necessarily outlast the given termination date. The intent of both parties that these and other such
provisions survive the date given for termination should be clear, and we believe that this intent
would control in the event of a dispute.
This being said, if it appears that completion of a project (resulting in delivery of the final 10%
of funds) will run over the termination date, it is important for you to let us know, so that we can
amend the contract to extend the date. Within reason, executing such an amendment does not
pose a problem, and absent unusual circumstances, would require no additional consideration.
I hope this explanation clarifies this issue to your satisfaction. If you have any further questions,
please give me a call at (512) 936-0178.
Your ,
l
Rob Hill
Assistant General Counsel
Post Office Box 12728 • Austin, Texas 78711-2728 • 512/936-0100
TDD: 512/936-0555 • Relay Texas: 800/735-2988
Printed on Recycled Paper
RESOLUTION NO. 5763
Item #27
February 12, 1998
TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT
CONTRACT FOR
Defense Economic Adjustment Assistance Grant
STATE OF TEXAS ]
COUNTY OF TRAVIS ]
SECTION 1. PARTIES TO CONTRACT
This contract (hereinafter referred to as "Contract") is made and entered into by and between
the Texas Department of Economic Development, an agency of the State of Texas, hereinafter
referred to as "Department", and the City of Lubbock (hereinafter referred to as "Contractor").
The parties hereto have severally and collectively agreed and by the execution hereof are
bound to the mutual obligations and to the performance and accomplishment of the tasks
described herein.
SECTION 2. CONTRACT PURPOSE
Contractor shall conduct, in a satisfactory manner as determined by Department, an economic
development project (hereinafter referred to as the "Project") to renovate and improve Building
#555 and cant' out a sewer interconnect project at Reese Center, formerly known as Reese Air
Force Base, Lubbock, Texas. Building #555 and the sewage system are hereinafter collectively
referred to as the "Facility". The Department will provide support for the Project in the amount of
$1,780,000.00 to renovate and improve Building #555, and $220,000.00 to cant' out a sewer
interconnect through a Defense Economic Adjustment Assistance Grant (DEAAG), as created
by the 75`h Texas Legislature to provide state funding for the purpose of acquiring federal grant
assistance or sharing the cost of redevelopment of communities that have been adversely
affected by defense downsizing. The grant program is authorized by Senate Bill 227 of the 75
Texas Legislature, that adds Chapter 486 to the Texas Government Code. Section 174 of the
Texas Administrative Code contains the rules under which the program is implemented. This
Project complements a separate economic development project in which similar funds have
been provided for the purchase of capital equipment for the Facility (hereinafter referred to as
the "Equipment Purchase Project").
SECTION 3. CONTRACT PERIOD
This Contract shall commence on December 19, 1997, and shall terminate on August 31, 1999,
upon completion of the Project as defined by Section 16 of this Contract.
SECTION 4. CONTRACTOR PERFORMANCE
A. Contractor shall conduct and complete the Project in a satisfactory manner as
determined by Department.
reese facility DEAAG
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B. Contractor shall comply with all applicable laws and regulations, and shall perform all
activities in accordance with the terms of the Special Conditions specified in Section 16
of this Contract, and with all other terms, provisions, and requirements set forth in this
Contract.
C. No more than ten percent (10%) of contract funds disbursed pursuant to this Contract
may be applied towards administrative costs. The acceptability of costs incurred for
performances rendered hereunder shall be determined in accordance with this Contract.
SECTION 5. DEPARTMENT OBLIGATIONS
A. Measure of Liability
In consideration of full and satisfactory performance of activities required by Section 4 of
this Contract, Department will disburse DEAAG funds to Contractor in the amounts and
at the times specified by the Special Conditions detailed in Section 16 of this Contract,
and subject to the limitations set forth in this Section 5.
1. It is expressly understood and agreed by the parties hereto that Department's
obligations under this Section are contingent upon the actual receipt of adequate
state funds to meet Department's liabilities under this Contract. If adequate
funds are not available to make payments under this Contract, Department will
notify Contractor in writing within a reasonable time after such fact is determined.
2. Department may terminate this Contract after written notice to Contractor of
noncompliance with the terms of this Contract and Contractor's failure to cure
such noncompliance within forty-five (45) days. Department will not be liable for
failure to make payments to Contractor under this Contract after such
termination.
3. Department will not be liable to Contractor for any costs incurred by Contractor or
for any performances rendered by Contractor which are not strictly in accordance
with the terms of this Contract.
4. Department will not be liable for costs incurred or performances rendered by
Contractor before commencement of this Contract or after termination of this
contract, except as may be specifically set forth in this Contract.
B. Excess Payments
Contractor shall refund to Department any sum of money paid to Contractor by
Department, which Department determines is an overpayment to Contractor, or which
Department determines was not spent by Contractor strictly in accordance with the
terms of this Contract. No refund payment(s) may be made from local, state, or federal
grant funds unless statute or regulation specifically permits repayment with grant funds.
Contractor shall make such refund to Department within forty-five (45) calendar days
after Department requests such refund.
C. Limit of Liability
Notwithstanding any other provision of this contract, the total of all payments and other
obligations incurred by Department under this Contract will not exceed the sum of Two
Million and No/100 Dollars ($2,000,000).
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SECTION 6. RETENTION AND ACCESSIBILITY OF RECORDS
A. Contractor shall maintain fiscal records and supporting documentation for all
expenditures of funds made under this Contract in a manner that conforms to this
Contract. Such records shall include data on the racial, ethnic, and gender
characteristics of persons who are applicants for, participants in, or beneficiaries of the
funds provided under this Contract. Contractor shall retain such records, and any
supporting documentation, for the greater of four years from the end of the contract
period, or the period required by other applicable laws and regulations.
B. Contractor shall give the Department, its designee, or any of their duly authorized
representatives, access to and the right to examine all books, accounts, records, audit
reports, reports, files, documents, written or photographic material, videotape and other
papers, things, or property belonging to or in use by Contractor pertaining to this
Contract, including records concerning the past use of DEAAG funds. Such rights to
access shall continue as long as the records are retained by Contractor. Failure to
provide reasonable access to authorized Department representatives shall give the
Department the right to terminate the Contract, or any portion thereof, for reason of
default. All records and other information shall be retained for audit purposes until such
audits or other administrative, civil or criminal matters, including but not limited to
investigations lawsuits, administrative inquires and open record requests are completed.
Contractor agrees to maintain such records in an accessible location and to provide
citizens reasonable access to such records consistent with the Texas Public Information
Act.
C. Access to records under'this Section 6 are subject to the Family Educational Rights and
Privacy Act of 1974 (FERPA). Where made necessary by operation of FERPA,
Contractor shall provide requested information from an alternative source or from
appropriately redacted sources.
D. Contractor shall include the substance of this Section 6 in all subcontracts.
SECTION 7. MONITORING
Department reserves the right to perform periodic on -site monitoring of Contractors compliance
with the terms and conditions of this Contract, and of the adequacy and timeliness of
Contractor's performances under this Contract. After each monitoring visit, Department will
provide Contractor with a written report of the monitor's findings. If the monitoring report notes
deficiencies in Contractor's performances under the terms of this contract, the monitoring report
shall include requirements for the timely correction of such deficiencies by Contractor. Failure
by Contractor to take action specified in the monitoring report may be cause for suspension or
termination of this Contract, as provided in Sections 14 and 15 of this Contract.
SECTION 8. INDEPENDENT CONTRACTOR
It is expressly understood and agreed by the parties hereto that Department is contracting with
Contractor as an Independent Contractor, and that Contractor, its employees and
subcontractors are not employees of the Department.
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SECTION 9. CONFLICT OF INTEREST
A. Contractor shall ensure that no employee, officer, or agent of Contractor shall participate
in the selection, award or administration of a subcontract supported by funds provided
hereunder if a conflict of interest, real or apparent, would be involved. Such conflict of
interest would arise when: (1) the employee, officer, or agent; (2) any member of his or
her immediate family; (3) his or her partner; or, (4) any organization which employs, or is
about to employ any of the above, has_a financial or other interest in the firm or person
selected to perform the subcontract. Contractor shall comply with Chapter 171, Texas
Local Government Code.
B. Except for eligible administrative or personnel costs, no employee, agent, consultant,
officer, or elected or appointed official, of either Contractor or of a subcontractor, who
exercises or has exercised any functions or responsibilities or is in a position to
participate in decision -making or gain inside information in regard to the activities
involved in the Project, shall be permitted to have or obtain a financial interest in or
benefit from the Project or any contract, subcontract or agreement with respect thereto,
or the proceeds thereunder, either for themselves or those with whom they have family
or business ties. This prohibition shall remain in effect for the duration of the prohibited
relationship plus one calendar year thereafter.
C. Contractor shall include the substance of this Section 9 in all subcontracts.
SECTION 10. NONDISCRIMINATION AND SECTARIAN ACTIVITY
A. Contractor shall ensure that no person shall on the ground of race, color, national origin,
religion, sex, age, or handicap be excluded from participation in, be denied the benefits
of, be subjected to discrimination under or be denied access to any program or activity
funded in whole or in part with funds made available under this Contract.
B. None of the performances rendered by Contractor under this Contract shall involve, and
no portion of the funds received by Contractor under this Contract, shall be used in
support of any sectarian or religious activity, nor shall any facilities used in the
performance of this Contract be used for sectarian instruction or as a place of religious
worship.
C. Contractor shall include the substance of this Section 10 in all subcontracts.
SECTION 11. LEGAL AUTHORITY
A. Contractor assures and guarantees that Contractor possesses the legal authority to
enter into this contract, receive funds authorized by this contract, and to perform the
services Contractor has obligated itself to perform hereunder.
B. The person or persons signing and executing this Contract on behalf of Contractor, or
representing themselves as signing and executing this Contract on behalf of Contractor,
do hereby warrant and guarantee that he, she or they have been duly authorized by
Contractor to execute this Contract on behalf of Contractor and to validly and legally bind
Contractor to all terms, performances, and provisions herein set forth.
reese facility DEAAG 4 2/5/98
C. Department will 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, any amendments hereto or to render performances hereunder.
Contractor is liable to Department for any money it has received from Department for
performance of the provisions of this Contract, if Department has suspended or
terminated this Contract for reasons enumerated in this Section 11.
SECTION 12. LITIGATION AND CLAIMS
A. Contractor shall give Department immediate notice in writing of any action, including any
proceeding before an administrative agency, filed against Contractor arising out the
performance of any subcontract hereunder. Except as otherwise directed by
Department, Contractor shall furnish immediately to Department copies of all pertinent
papers received by Contractor with respect to such action or claim. Contractor shall
notify the Department immediately of any legal action filed against the Contractor or any
subcontractor, or of any proceeding filed under the federal bankruptcy code. Contractor
shall submit a copy of such notice to Department within 30 calendar days after receipt.
No funds provided under this Contract may be used in the payment of any costs incurred
from violations or settlements of or failure to comply with federal and state regulations.
B. Contractor hereby agrees to indemnify and hold harmless Department, its Governing
Board members, officers, agents and employees, and the State of Texas, its officers,
agents and employees from any and all losses, costs, damages, expenses, and liabilities
of whatsoever nature (including, but not limited to, attorney's fees, litigation and court
costs, amounts paid in settlement, and amounts paid to discharge judgments) directly or
indirectly resulting from, arising out of, or related to the performance of this Contract by
Contractor, or the design, construction, installation, operation, use, occupancy,
maintenance, or ownership of the Facility.
SECTION 13. CHANGES AND AMENDMENTS
A. Except as specifically provided otherwise in this Contract, any alterations, additions, or
deletions to the terms of this Contract shall be by amendment hereto in writing and
executed by both parties to this contract.
B. It is understood and agreed by the parties hereto that performances under this Contract
shall be rendered in accordance with the laws and rules governing Defense Economic
Adjustment Assistance Grants, and the terms and conditions of this Contract.
Department may, during the contract period, issue policy directives which serve to
establish, interpret, or clarify performance requirements under this contract. Such policy
directives will be promulgated by Department, shall have the effect of qualifying the
terms of this Contract and shall be binding upon Contractor, as if written herein, provided
however that said policy directives and any amendments shall not alter the terms of this
Contract so as to release Department from any obligation specified in Section 5 of this
Contract to reimburse costs incurred by Contractor prior to the effective date of said
amendments or policy directives.
C. Any alterations, additions, or deletions to the terms of this Contract required by changes
in state law or regulations are automatically incorporated into this Contract without
written amendment hereto, and shall become effective on the date designated by such
law or regulation.
reese facility DEAAG 5 2W8
SECTION 14. SUSPENSION
A. Notwithstanding the provisions of Chapter 2251 of the Texas Government Code, in the
event Contractor fails to comply with any term of this Contract, Department may, after
written notice to Contractor of noncompliance with the terms of this Contract and
Contractor's failure to cure such noncompliance within forty-five (45) days, suspend this
Contract in whole or in part, withhold further payments to Contractor, and prohibit
Contractor from incurring additional obligations of funds under this Contract.
B. A suspension under this Section 14 may be lifted only at the sole discretion of the
Department upon a showing of compliance with or written waiver by Department of the
term(s) in question.
C. Department will not be liable to Contractor or to Contractor's creditors for costs incurred
during any term of suspension of this Contract.
SECTION 16. TERMINATION
A. Department will have the right, after written notice to Contractor of noncompliance with
any term of this Contract and Contractor's failure to cure such noncompliance within
forty-five (45) days, to terminate this Contract, in whole or in part, at any time before the
date of completion specked in Section 3 of this Contract. In the case of partial
termination, the written notice shall identify the portion of the Contract to be terminated.
B. Upon termination or receipt of notice to terminate, whichever occurs first, Contractor
shall cancel, withdraw, or otherwise terminate any outstanding orders or subcontracts
related to the performance of this Contract or the part of this Contract to be terminated,
and shall cease to incur costs thereunder. Department will not be liable to Contractor or
to Contractor's creditors for costs incurred after the effective date of termination of this
Contract.
C. Notwithstanding any exercise by Department of its right of suspension under Section 14
of this Contract, or of early termination pursuant to this Section 15, Contractor shall not
be relieved of any liability to Department for damages due to Department by virtue of any
breach of this Contract by Contractor. Department may withhold payments to Contractor
until such time as the exact amount of damages due to Department from Contractor is
agreed upon or is otherwise determined.
SECTION 16. SPECIAL CONDITIONS
A. The total amount of funds provided for this contract, in the amount of Two Million Dollars
($2,000,000.00, hereinafter referred to as "Contract Funds"), shall be disbursed for the
completion of two tasks: the renovation of Building #555 (hereinafter referred to as the
"Renovation Project"); and the construction of a sewer reconnect (hereinafter referred to
as the "Sewer Project"). One Million, Seven Hundred and Eighty Thousand Dollars
($1,780,000.00) shall be allocated to the Renovation Project, and the remaining Two
Hundred and Twenty Thousand ($220,000.00) shall be allocated to the Sewer Project.
neese facility DEAAG 6 2/W8
B. Contractor shall, within nine (9) months of the effective date of this Contract, submit the
following to Department prior to the initial disbursement of Contract Funds, which shall
equal fifty percent (50%) of the total amount of funds allocated to the Renovation
Project:
1. Copies of plans and specifications for the Renovation Project, specifically the
renovation of Building #555 to meet the needs of the Institute of Environmental
and Human Health. This renovation shall include, at a minimum, upgrading and
expanding the heating, ventilation, and air conditioning system, and limited
construction as necessary to install sprinklers and partitions, lower ceilings, and
make other general improvements. Further improvements will be undertaken on
a priority basis.
2. Copies of the following documentation:
a. Final application for funding as submitted to the Economic Development
Administration, as specified in Section 17 of this Contract;
b. Memoranda from the chief financial officers of Texas Tech University,
Market Lubbock, Texas, Texas Tech University Health Sciences Center,
and the City of Lubbock, committing funds as specked in Section 17 of
this Contract;
C. Lease and Furtherance of Conveyance from the U.S. Department of
Defense, for "in kind" funding as specified in Section 17 of this contract.
3. A letter identifying a person authorized by Contractor for the purpose of
requesting and receiving funds from the Department.
4. A copy of the administration contract, if one is contracted.
C. Contractor shall, within nine (9) months of the effective date of this Contract, and prior to
the initial disbursement of fifty percent (50%) of the total amount of Contract Funds
allocated to the Sewer Project, provide copies of plans and specifications for the Sewer
Project, specifically the construction of a sewer reconnect at Reese Center. This
construction shall involve, at a minimum, the disconnection of the Reese sewer system
from the existing sewage treatment plant, the reconnection to the City of Lubbock's
sanitary sewer system for transport to the Lubbock Southeast Wastewater Reclamation
Plant, and the construction of a new lift station to effect the reconnection.
D. Contractor shall satisfy the following Special Conditions, in addition to the Special
Conditions defined in Section 16B.of this Contract, prior to the second disbursement of
Contract Funds allocated to the Renovation Project, which shall equal forty percent
(40%) of the total amount'of Contract Funds allocated to the Renovation Project:
Contractor shall provide a copy of an invoice showing fifty percent (50%)
completion of the Renovation Project, with a certificate stamped and signed by
the architect or engineer responsible.
2. Contractor shall provide documentation to Department indicating that the plans
and specifications for construction of improvements or renovation of the Facility
have been reviewed and approved by the Texas Department of Licensing and
Regulation (TDLR) with regard to the elimination of architectural barriers
encountered by persons with disabilities as specified in TEX.REV.CIV.STAT.
ANN. art.9102 and the rules promulgated thereunder. If the TDLR has not issued
reese facility DEAAG 7 2/5/98
approval within thirty (30) days of its receipt of the plans and specifications, the
operation of this condition may be temporarily suspended pending such approval
by submitting proof of mailing and a legible photocopy of both sides of a
canceled check. The plans and specifications shall be sent to the Texas
Department of Licensing and Regulations, Architectural Barriers Division, P.O.
Box 12157, Austin, Texas 78711, and shall be identified as a project being
financed through the Department.
E. Contractor shall satisfy the following Special Conditions, in addition to the Special
Conditions defined in Section 16C of this Contract, prior to the second disbursement of
Contract Funds allocated to the Sewer Project, which shall equal forty percent (40%) of
the total Contract Funds allocated to the Sewer Project:
1. Contractor shall provide a copy of an invoice showing fifty percent (50%)
completion of the Sewer Project, with a certificate stamped and signed by the
architect or engineer responsible.
2. Contractor shall provide documentation to Department that the plans and
specifications for the lift station and sewer reconnect have been reviewed and
when applicable, approved by the Texas Natural Resource Conservation
Commission (°TNRCC°) prior to construction. Where TNRCC approval is
required, necessary applications and materials shall be sent by Contractor to the
Texas Natural Resource Conservation Commission, Watershed Management
Division. P.O. Box 12100, Park 35 Circle, Austin, Texas 78753, and shall be
identified as activities being'financed through the Department.
F. Contractor shall satisfy the following Special Conditions, in addition to satisfying the
Special Conditions defined in Section 16 B and D, prior to the final disbursement of the
remaining ten percent (10%) of Contract Funds allocated to the Renovation Project:
1. Contractor shall have completed all modifications and renovations to the Facility
as described in plans and specifications originally submitted to the Department,
2. Contractor shall submit a Certificate of Completion to Department no later than
sixty (60) calendar days after the conclusion of Facility modifications and
construction. The Certificate of Completion shall include a final Project
Completion Report of all activities performed under this Contract.
G. Contractor shall satisfy the following Special Conditions, in addition to satisfying the
Special Conditions defined in Section 16 C and E, prior to the final disbursement of the
remaining ten percent (10%) of Contract Funds allocated to the Sewer Project:
1. Contractor shall have completed all work on the Sewer Project as described in
plans and specifications originally submitted to the Department, and the sewer
reconnect system shall be substantially operational; and,
2. Contractor shall submit a Certificate of Completion to Department no later than
sixty (60) calendar days after the conclusion work on the Sewer Project. The
Certificate of Completion shall include a final Project Completion Report of all
activities performed under this Contract.
H. The Contractor shall provide milestones and updates on a semi-annual basis, including
photographs where appropriate, prior to completion of the total Project (as marked by
the release of the final installment of Contract Funds by the Department).
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4
1. Contractor shall ensure that Department is provided with a certified engineering
or architectural assessment of the Project on a semi-annual basis.
2. The Contractor shall provide base line and semi-annual data on the impact of the
Project on the local economy over a four-year period beginning with the
completion of the Project.
3. The Contractor shall provide base line and semi-annual data on full-time jobs
generated by the Project and data on the employment of dislocated defense and
economically disadvantaged workers beginning with initial occupancy of the
Facility.
4. The Contractor shall provide semi-annually, copies of payroll documents verifying
the number of employees during the construction phase of the Project. Upon
completion of the Project, the Contractor shall provide payroll documents
indicating the number of full-time jobs created over the course of the construction
phase of the Project.
5. In addition to the limitations on liability otherwise specified in this contract, it is
expressly understood and agreed by the parties hereto that if Contractor fails to
submit to Department in a timely and satisfactory manner any report required by
this contract, Department may, at its sole option and in its sole discretion,
withhold any or all payments otherwise due or requested by Contractor
hereunder. If Department withholds such payments, it will notify Contractor in
writing of its decision and the reasons therefor. Payments withheld pursuant to
this paragraph may be held by Department until such time as the delinquent
obligations for which funds are withheld are fulfilled by Contractor.
I. In the event the Contractor fails to complete the Project or comply with any provision as
specified in this Contract, the Contractor may be liable to the Department for an amount
not to exceed the maximum obligation under this Contract, and may be barred from
applying for or receiving additional funding under the DEAAG program until repayment is
made and any other compliance or audit findings are resolved and/or the job generation
requirements of this Section 16 are fulfilled.
J. Job Generation Requirements
1. Within two years of the completion of the Project, as marked by the release of the
final installment of Contract Funds by the Department, Contractor shall ensure
and demonstrate to the Department that the completion of the Facility under this
Project and the Equipment Purchase Project together shall generate a minimum
of sixty-eight (68) new, direct, permanent full-time jobs.
2. In the event the Contractor fails to ensure the creation and retention of new jobs
as required by this Section 16, Department shall receive a recoupment of funds
from Contractor equal to the lesser of:
a. A prorated share of the total Contract Fund amount of two million dollars
($2,000,000.00) for. each of the minimum number of new, direct,
pennanent full-time jobs required in this Contract (68) not created and in
existence on the second anniversary of the completion of the Project; or
b. Fifty percent (50%) of the total Contract Fund amount of two million
dollars ($2,000,000.00).
reese facility DEAAG 9 2W8
3. For purposes of this Contract:
a. Job creation and retention rates must be evidenced by satisfactory
documentation, such as copies of payroll documents, as required by the
Department.
b. The number of jobs counted will include jobs directly related to the Project
that are already filled by staff, faculty, and graduate students prior to the
effective date of this Contract.
C. A "full-time" job is one requiring a minimum of forty (40) hours per week.
Any job requiring less than forty hours per week is considered "part-time,'
and shall be counted towards the minimum job creation and retention
requirement in its proportion to a 40-hour work week (e.g., an employee
working a 20 hour week ='/ of a full time employee, a 30 hour week ='/
of a full-time employee).
K. Contractor shall provide Department with copies of all reports required by the EDA
pursuant to the terms of the grant of EDA funds to the Project, within 30 days of their
submission to the EDA.
L. Contractor shall provide Department with copies of all final contracts and agreements
from funding sources as specified in Section 17 of this contract.
SECTION 17. FUNDING SOURCES:
Funding Type
Specific Source Name
Amount of Funding
Total
Federal Funding
Economic Development
$1,320,000
$2,320,000
Defense Conversion
Administration
Department of Defense
$1,000,000
Texas Defense
Texas Department of
$2,000,000
$2,000,000
Economic Adjustment
Economic Development
Assistance Grant
Local Community
Texas Tech University
$2,000,000
$2,700,000
Funding
Higher Education
Assistance Fund
Market Lubbock,
$230,000
Inc.Texas
City of Lubbock
$220,000
Tech University
$250,000
Health Sciences Center
Assistance from Other
Department of Defense
$4,105,000
$4,105,000
Sources
renamg avanaointy or Tunas Trom finis source. 5nouia tnese Tunas not become avaname from
this source, Contractor shall ensure this funding amount ($1,000,000.00) is met.
2 Represents "in kind" contribution, specifically, land, structures, improvements, and equipment.
reese facility DEAAG 10 215198
SECTION 18. SUBCONTRACTS
A. Contractor shall ensure that the performance rendered under all subcontracts complies
with all terms and provisions of this Contract as if such performance were rendered by
Contractor. Contractor shall bear full responsibility for performance by all subcontractors.
B. Contractor, in subcontracting any of the performances hereunder, expressly understands
that in entering into such subcontracts, Department is in no way liable to Contractor's
subcontractor(s).
C. Contractor assures and shall obtain assurances from all of its subcontractors where
applicable, that no person shall, on the grounds of race, creed, color, disability, national
origin, sex or religion, be excluded from, be denied the benefit of, or be subjected to
discrimination under any program or activity funded in whole or in part under this
Contract.
D. As subcontracts and supplier contracts become necessary to carry out the requirements
of this Contract, Contractor covenants to make a good faith effort to contract with
historically underutilized (disadvantaged) businesses so certified by the State of Texas,
as that term is identified by Section 481.101, Texas Government Code. Contractor shall
make a good faith effort to let at least thirty percent (30%) of the total value of all
subcontracts and supplier contracts for the performance of this Contract to historically
underutilized (disadvantaged) businesses.
SECTION 19. DEBARMENT
By signing this contract, Contractor certifies that it will not award any funds provided under this
Contract to any party which is debarred, suspended or otherwise excluded from or ineligible for
participation in assistance programs. Contractor further certifies that it is not ineligible under
Section 231.006 of the Texas Family Code Family Code to receive the specified grant, loan, or
payment and acknowledges that this Contract may be terminated and payment may be withheld
if this certification is inaccurate.
SECTION 20. WAIVER
It is expressly understood and agreed by the parties hereto that any right or remedy provided for
in this Contract shall not preclude the exercise of any other right or remedy under this Contract
or under any provision of law, nor shall any action taken in the exercise of any right or remedy
be deemed a waiver of any other rights or remedies. Failure to exercise any right or remedy
hereunder shall not constitute a waiver of the right to exercise that or any other right or remedy
at any time.
SECTION 21. NON -ASSIGNMENT
This Contract is not assignable. Notwithstanding any attempt to assign the Contract, Contractor
shall remain fully liable on this Contract and shall not be released from performing any of the
reese facility DEAAG 11 21W8
a
terms, covenants, and conditions of this contract. Contractor shall be held responsible for all
funds received under this Contract.
SECTION 22. ORAL AND WRITTEN AGREEMENTS
All oral and written agreements between the parties to this Contract relating to the subject
matter of this Contract that were made prior to the execution of this Contract have been reduced
to writing and are contained in this Contract.
SECTION 23. AUTHORIZED RELIEF FROM PERFORMANCE (Force majeure)
Department may grant relief from performance of the Contract if the Contractor is prevented
from compliance and performance by an act of war, order of legal authority, act of God, or other
unavoidable cause not attributed to the fault or negligence of the Contractor. The burden of
proof for the need for such relief shall rest upon the Contractor. To obtain release based upon
force majeure, the Contractor must file a written request with the Department.
SECTION 24. VENUE
For purposes of litigation pursuant to this Contract, venue shall lie in Travis County, Texas.
WITNESS OUR HANDS, EFFECTIVE DECEMBER 19, 1997:
Accepted and executed on behalf of the City of Lubbock
leHonorableWindy Sitton, Mayor
City of Lubbock
ATTEST:
Kayth' Parnell,
City Sbtretary
Accepted and executed on behalf of the Texas Department of Economic Development
-A - V� - -t-'e
W. Lane Lanford, Chief A inistrative Officer
Texas Department of Ec9fiomic Development
This Contract is not effective unless signed by the Executive Director of the Texas Department
of Economic Development or by his or her authorized designee.
reese facility DEAAG 12 2/5/98
RESOLUTION NO.5763
Item #27
February 12, 1998
TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT
CONTRACT FOR
Defense Economic Adjustment Assistance Grant
STATE OF TEXAS ]
COUNTY OF TRAVIS ]
SECTION 1. PARTIES TO CONTRACT
This contract (hereinafter referred to as "Contract') is made and entered into by and between
the Texas Department of Economic Development, an agency of the State of Texas, hereinafter
referred to as "Department", and the City of Lubbock (hereinafter referred to as "Contractor").
The parties hereto have severally and collectively agreed and by the execution hereof are
bound to the mutual obligations and to the performance and accomplishment of the tasks
described herein.
SECTION 2. CONTRACT PURPOSE
4A_dCU-
Contractor shall conduct, in a satisfactory mE }� rtment, an economic
'wt ' development project (hereinafter referred to 4� e capital equipment
necessary to equip Building #555 (hereinafte � at Reese Center in
Lubbock, Texas (formerly known as Reese Ai -ds of the Institute of
Environmental and Human Health (TIEHH). T _jpport for the Project
through a Defense Economic Adjustment Assis ante rant (DEAAG), as created by the 75"'
Texas Legislature to provide state funding for the purpose of acquiring federal grant assistance
or sharing the cost of redevelopment of communities that have been adversely affected by
defense downsizing. The grant program is authorized by Senate Bill 227 of the 75"' Texas
Legislature, that adds Chapter 486 to the Texas Government Code. Section 174 of the Texas
Administrative Code contains the rules under which the program is implemented. This Project
complements a separate economic development project in which similar funds have been
provided for the renovation and improvement of the Facility (hereinafter referred to as the "Initial
Renovation Project).
SECTION 3. CONTRACT PERIOD
This Contract shall commence on December 19, 1997, and shall terminate on August 31, 1999,
upon completion of the Project as defined by Section 16 of this Contract.
SECTION 4. CONTRACTOR PERFORMANCE
A. Contractor shall conduct and complete the Project in a satisfactory manner as
determined by Department.
B. Contractor shall use grant funds solely for the purchase of capital equipment only.
reese equipment DEAAG
02/5/98
C. Contractor shall comply with all applicable laws and regulations, and shall perform all
activities in accordance with the terms of the Special Conditions specified in Section 16
of this Contract, and with all other terms, provisions, and requirements set forth in this
Contract.
D. No more than ten percent (10%) of contract funds disbursed pursuant to this Contract
may be applied towards administrative costs. The acceptability of costs incurred for
performances rendered hereunder shall be determined in accordance with this Contract.
SECTION 6. DEPARTMENT OBLIGATIONS
A. Measure of Liability
In consideration of full and satisfactory performance of activities required by Section 4 of
this Contract, Department will disburse DEAAG funds to Contractor in the amounts and
at the times specified by the Special Conditions detailed in Section 16 of this Contract,
and subject to the limitations set forth in this Section 5.
1. It is expressly understood and agreed by the parties hereto that Department's
obligations under this Section are contingent upon the actual receipt of adequate
state funds to meet Department's liabilities under this Contract. If adequate
funds are not available to make payments under this Contract, Department will
notify Contractor in writing within a reasonable time after such fact is determined.
2. Department may terminate this Contract after written notice to Contractor of
noncompliance with the terms of this Contract and Contractor's failure to cure
such noncompliance within forty-five (45) days. Department will not be liable for
failure to make payments to Contractor under this Contract after such
termination.
3. Department will not be liable to Contractor for any costs incurred by Contractor or
for any performances rendered by Contractor which are not strictly in accordance
with the terms of this Contract.
4. Department will not be liable for costs incurred or performances rendered by
Contractor before commencement of this Contract or after termination of this
Contract, except as may be specifically set forth in this Contract.
B. Excess Payments
Contractor shall refund to Department any sum of money paid to Contractor by
Department, which Department determines is an overpayment to Contractor, or which
Department determines was not spent by Contractor strictly in accordance with the
terms of this Contract. No refund payment(s) may be made from local, state, or federal
grant funds unless statute or regulation specifically permits repayment with grant funds.
Contractor shall make such refund to Department within thirty (30) calendar days after
Department requests such refund.
C. Limit of liability
Notwithstanding any other provision of this Contract, the total of all payments and other
obligations incurred by Department under this Contract will not exceed the sum of Two
Million and No/100 Dollars ($2,000,000.00).
reese equipment DEAAG 2 OZW8
SECTION 6. RETENTION AND ACCESSIBILITY OF RECORDS
A. Contractor shall maintain fiscal records and supporting documentation for all
expenditures of funds made under this Contract in a manner that conforms to this
Contract. Such records shall include data on the racial, ethnic, and gender
characteristics of persons who are applicants for, participants in, or beneficiaries of the
funds provided under this Contract. Contractor shall retain such records, and any
supporting documentation, for the greater of four years from the end of the contract
period, or the period required by other applicable laws and regulations.
B. Contractor shall give the Department, its designee, or any of their duly authorized
representatives, access to and the right to examine all books, accounts, records, audit
reports, reports, files, documents, written or photographic material, videotape and other
papers, things, or property belonging to or in use by Contractor pertaining to this
Contract, including records concerning the past use of DEAAG funds. Such rights to
access shall continue as long as the records are retained by Contractor. Failure to
provide reasonable access to authorized Department representatives shall give the
Department the right to terminate the Contract, or any portion thereof, for reason of
default. All records and other information shall be retained for audit purposes until such
audits or other administrative, civil or criminal matters, including but not limited to
investigations lawsuits, administrative inquires and open record requests are completed.
Contractor agrees to maintain such records in an accessible location and to provide
citizens reasonable access to such records consistent with the Texas Public Information
Act.
C. Access to records under this Section 6 are subject to the Family Educational Rights and
Privacy Act of 1974 (FERPA). Where made necessary by operation of FERPA,
Contractor shall provide requested information from an alternative source or from
appropriately redacted sources.
D. Contractor shall include the substance of this Section 6 in all subcontracts.
SECTION 7. MONITORING
Department reserves the right to perform periodic on -site monitoring of Contractors compliance
with the terms and conditions of this Contract, and of the adequacy and timeliness of
Contractor's performances under this Contract. After each monitoring visit, Department will
provide Contractor with a written report of the monitors findings. If the monitoring report notes
deficiencies in Contractor's performances under the terms of this Contract, the monitoring report
shall include requirements for the timely correction of such deficiencies by Contractor. Failure
by Contractor to take action specified in the monitoring report may be cause for suspension or
termination of this Contract, as provided in Sections 14 and 15 of this Contract.
SECTION 8. INDEPENDENT CONTRACTOR
It is expressly understood and agreed by the parties hereto that Department is contracting with
Contractor as an Independent Contractor, and that Contractor, its employees and
subcontractors are not employees of the Department.
reese equipment DEAAG 3 02W8
SECTION 9. CONFLICT OF INTEREST
A. Contractor shall ensure that no employee, officer, or agent of Contractor shall participate
in the selection, award or administration of a subcontract supported by funds provided
hereunder if a conflict of interest, real or apparent, would be involved. Such conflict of
interest would arise when: (1) the employee, officer, or agent; (2) any member of his or
her immediate family; (3) his or her partner; or, (4) any organization which employs, or is
about to employ any of the above, has a financial or other interest in the firm or person
selected to perform the subcontract. Contractor shall comply with Chapter 171, Texas
Local Government Code.
B. Except for eligible administrative or personnel costs, no employee, agent, consultant,
officer, or elected or appointed official, of either Contractor or of a subcontractor, who
exercises or has exercised any functions or responsibilities or is in a position to
participate in decision -making or gain inside information in regard to the activities
involved in the Project, shall be permitted to have or obtain a financial interest in or
benefit from the Project or any contract, subcontract or agreement with respect thereto,
or the proceeds thereunder, either for themselves or those with whom they have family
or business ties. This prohibition shall remain in effect for the duration of the prohibited
relationship plus one calendar year thereafter.
C. Contractor shall include the substance of this Section 9 in all subcontracts.
SECTION 10. NONDISCRIMINATION AND SECTARIAN ACTIVITY
A. Contractor shall ensure that no person shall on the ground of race, color, national origin,
religion, sex, age, or handicap be excluded from participation in, be denied the benefits
of, be subjected to discrimination under or be denied access to any program or activity
funded in whole or in part with funds made available under this Contract.
B. None of the performances rendered by Contractor under this Contract shall involve, and
no portion of the funds received by Contractor under this Contract, shall be used in
support of any sectarian or religious activity, nor shall any facilities used in the
performance of this Contract be used for sectarian instruction or as a place of religious
worship.
C. Contractor shall include the substance of this Section 10 in all subcontracts.
SECTION 11. LEGAL AUTHORITY
A. Contractor assures and guarantees that Contractor possesses the legal authority to
enter into this Contract, receive funds authorized by this Contract, and to perform the
services Contractor has obligated itself to perform hereunder.
B. The person or persons signing and executing this Contract on behalf of Contractor, or
representing themselves as signing and executing this Contract on behalf of Contractor,
do hereby warrant and guarantee that he, she or they have been duly authorized by
Contractor to execute this Contract on behalf of Contractor and to validly and legally bind
Contractor to all terms, performances, and provisions herein set forth.
reese equipment DEAAG 4 02W8
C. Department will 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, any amendments hereto or to render performances hereunder.
Contractor is liable to Department for any money it has received from Department for
performance of the provisions of this Contract, if Department has suspended or
terminated this Contract for reasons enumerated in this Section 11.
SECTION 12. LITIGATION AND CLAIMS
A. Contractor shall give Department immediate notice in writing of any action, including any
proceeding before an administrative agency, filed against Contractor arising out the
performance of any subcontract hereunder. Except as otherwise directed by
Department, Contractor shall furnish immediately to Department copies of all pertinent
papers received by Contractor with respect to such action or claim. Contractor shall
notify the Department immediately of any legal action filed against the Contractor or any
subcontractor, or of any proceeding filed under the federal bankruptcy code. Contractor
shall submit a copy of such notice to Department within 30 calendar days after receipt.
No funds provided under this Contract may be used in the payment of any costs incurred
from violations or settlements of or failure to comply with federal and state regulations.
B. Contractor hereby agrees to indemnify and hold harmless Department, its Governing
Board members, officers, agents and employees, and the State of Texas, its officers,
agents and employees from any and all losses, costs, damages, expenses, and liabilities
of whatsoever nature (including, but not limited to, attorney's fees, litigation and court
costs, amounts paid in settlement, and amounts paid to discharge judgments) directly or
indirectly resulting from, arising out of, or related to the performance of this Contract by
Contractor, or the design, construction, installation, operation, use, occupancy,
maintenance, or ownership of the Facility.
SECTION 13. CHANGES AND AMENDMENTS
A. Except as specifically provided otherwise in this Contract, any alterations, additions, or
deletions to the terms of this Contract shall be by amendment hereto in writing and
executed by both parties to this Contract.
B. It is understood and agreed by the parties hereto that performances under this Contract
shall be rendered in accordance with the laws and rules governing Defense Economic
Adjustment Assistance Grants, and the terms and conditions of this Contract.
Department may, during the contract period, issue policy directives which serve to
establish, interpret, or clarify performance requirements under this Contract. Such policy
directives will be promulgated by Department, shall have the effect of qualifying the
terms of this Contract and shall be binding upon Contractor, as if written herein, provided
however that said policy directives and any amendments shall not alter the terms of this
Contract so as to release Department from any obligation specked in Section 5 of this
Contract to reimburse costs incurred by Contractor prior to the effective date of said
amendments or policy directives.
C. Any alterations, additions, or deletions to the terms of this Contract required by changes
in state law or regulations are automatically incorporated into this Contract without
written amendment hereto, and shall become effective on the date designated by such
law or regulation.
reese equipment DEAAG 5 02WS
i
SECTION 14. SUSPENSION
A. Notwithstanding the provisions of Chapter 2251 of the Texas Government Code, in the
event Contractor fails to comply with any term of this Contract, Department may, after
written notice to Contractor of noncompliance with the -terms of this Contract and
Contractor's failure to cure such noncompliance within forty-five (45) days, suspend this
Contract in whole or in part, withhold further payments to Contractor, and prohibit
Contractor from incurring additional obligations of funds under this Contract.
B. A suspension under this Section 14 may be lifted only at the sole discretion of the
Department upon a showing of compliance with or written waiver by Department of the
term(s) in question.
C. Department will not be liable to Contractor or to Contractor's creditors for costs incurred
during any tern of suspension of this Contract.
SECTION 16. TERMINATION
A. Department will have the right, after written notice to Contractor of noncompliance with
any term of this Contract and Contractor's failure to cure such noncompliance within
forty-five (45) days, to terminate this Contract, in whole or in part, at any time before the
date of completion specified in Section 3 of this Contract. In the case of partial
termination, the written notice shall identify the portion of the Contract to be terminated.
B. Upon termination or receipt of notice to terminate, whichever occurs first, Contractor
shall cancel, withdraw, or otherwise terminate any outstanding orders or subcontracts
related to the performance of this Contract or the part of this Contract to be terminated,
and shall cease to incur costs thereunder. Department will not be liable to Contractor or
to Contractor's creditors for costs incurred after the effective date of termination of this
Contract.
C. Notwithstanding any exercise by Department of its right of suspension under Section 14
of this Contract, or of early termination pursuant to this Section 15, Contractor shall not
be relieved of any liability to Department for damages due to Department by virtue of any
breach of this Contract by Contractor. Department may withhold payments to Contractor
until such time as the exact amount of damages due to Department from Contractor is
agreed upon or is otherwise determined.
SECTION 16. SPECIAL CONDITIONS
A. Contractor shall submit the following to Department prior to the initial disbursement of
contract funds, which shall equal fifty percent (50%) of the total amount of funds
provided by Department under this Contract (hereinafter "Contract Funds"), and within
nine (9) months of the effective date of this Contract:
1. Copies of descriptions of and specifications (including cost) for all capital
equipment to be purchased and installed in the Facility to meet the needs of the
TIEHH, with equipment to be purchased using the first disbursement of Contract
Funds indicated.
neese equipment DEAAG 6 02WB
2. Copies of the following documentation:
a. Memoranda from the chief financial officer of the Texas Tech University,
committing funds as specified in Section 17 of this Contract;
b. Lease and Furtherance of Conveyance from the U.S. Department of
Defense, for min kind" funding as specified in Section 17 of this Contract.
3. A letter identifying a person authorized by Contractor for the purpose of
requesting and receiving funds from the Department.
4. A copy of the administration contract, if one is contracted.
B. In addition to satisfying the foregoing Special Conditions, and prior to the second
disbursement of Contract Funds, which shall equal forty percent (40%) of the total
Contract Funds, Contractor shall provide receipts to Department indicating that the
capital equipment identified in Section 16A(1) of this Contract has been purchased.
C. Contractor shall satisfy the following Special Conditions, in addition to satisfying the
foregoing Special Conditions, prior to the final disbursement of the remaining ten percent
(10%) of Contract Funds:
1. Contractor shall have completed all modifications and renovations to the Facility
as described in plans and specifications originally submitted to the Department
pursuant to the DEAAG contract between Department and the City of Lubbock
for renovations to the Facility.
2. Contractor shall submit a notice of completion to Department no later than sixty
(60) calendar days after the purchase and installation of all capital equipment
purchased with Contract Funds. The notice of completion shall include a final
Project Completion Report of all activities performed under this Contract.
D. The Contractor shall provide milestones and updates on a semi-annual basis, including
photographs where appropriate, prior to completion of the total Project (as marked by
the release of the final ten percent (10%) of Contract Funds by the Department).
1. Contractor shall ensure that Department is provided with an assessment of the
Project on a semi-annual basis, including assessments by representatives of the
TIEHH of the equipment purchased.
2. The Contractor shall provide base line and semi-annual data on the impact of the
Project on the local economy over a four-year period beginning with the
completion of the Project.
3. The Contractor shall provide base line and semi-annual data on full-time jobs
generated by the Project and data on the employment of dislocated defense and
economically disadvantaged workers beginning with initial occupancy of the
Facility.
4. The Contractor shall provide semi-annually, copies of payroll documents verifying
the number of employees during the construction phase of the Project. Upon
completion of the Project, the Contractor shall provide payroll documents
indicating the number of full-time jobs created over the course of the construction
phase of the Project.
neese equipment DEAAG 7 0215198
5. In addition to the limitations on liability otherwise specified in this Contract, it is
expressly understood and agreed by the parties hereto that if Contractor fails to
submit to Department in a timely and satisfactory manner any report required by
this Contract, Department may, at its sole option and in its sole discretion,
withhold any or all payments otherwise due or requested by Contractor
hereunder. If Department withholds such payments, it will notify Contractor in
writing of its decision and the reasons therefor. Payments withheld pursuant to
this paragraph may be held by Department until such time as the delinquent
obligations for which funds are withheld are fulfilled by Contractor.
E. In the event the Contractor fails to complete the Project or comply with any provision as
specified in this Contract, the Contractor may be liable to the Department for an amount
not to exceed the maximum obligation under this Contract, and may be barred from
applying for or receiving additional funding under the DEAAG program until repayment is
made and any other compliance or audit findings are resolved and/or the job generation
requirements of this Section 16 are fulfilled.
F. Job Generation Requirements
1. Within two years of the completion of the Project, as marked by the release of the
final installment of Contract Funds by the Department, Contractor shall ensure
and demonstrate to the Department that the completion of the Facility under this
Project and the Initial Renovation Project together shall generate a minimum of
sixty-eight (68) new, direct, permanent full-time jobs.
2. In the event the Contractor fails to ensure the creation and retention of new jobs
as required by this Section 16, Department shall receive a recoupment of funds
from Contractor equal to the lesser of:
a. A prorated share of the total Contract Fund amount of two million dollars
($2,000,000.00) for each of the minimum number of new, direct,
permanent full-time jobs required in this Contract (68) not created and in
existence on the second anniversary of the completion of the Project; or
b. Fifty percent (50%) of the total Contract Fund amount of two million
dollars ($2,000,000.00).
3. For purposes of this Contract:
a. Job creation and retention rates must be evidenced by satisfactory
documentation, such as copies of payroll documents, as required by the
Department.
b. The number of jobs counted will include jobs directly related to the Project
that are already filled by staff, faculty, and graduate students prior to the
effective date of this Contract.
C. A "full-time" job is one requiring a minimum of forty (40) hours per week.
Any job requiring less than forty hours per week is considered "part-time,"
and shall be counted towards the minimum job creation and retention
requirement in its proportion to a 40-hour work week (e.g., an employee
working a 20 hour week = of a full time employee, a 30 hour week = s/
of a full-time employee).
reese equipment DEAAG . 8 02/a B
G. Contractor shall provide Department with copies of all final contracts and agreements
from funding sources as specified in Section 17 of this Contract.
SECTION 17. FUNDING SOURCES:
Funding Type
Specific Source Name
Amount of Funding
Total
Federal Defense
Department of Defense
$1,000,000
$1,000,000
Appropriation
Texas Defense
Texas Department of
$2,000,000
$2,000,000
Economic Adjustment
Economic Development
Assistance Grant
Local Community
Texas Tech University
$1,500,000
$2,500,000
Funding
Higher Education
Assistance Fund/
Education and General
Fund
Texas Tech Health
$1,000,000
Sciences Center
Assistance from Other
Department of Defense
$1,300,000
$1,300,000
Sources
Pending availability of funds from this source. Should these funds not become available from
this source, Contractor shall ensure this funding amount ($1,000,000.00) is met.
2 Represents 'in kind" contribution, specifically, land, structures, improvements, and equipment.
SECTION 18. SUBCONTRACTS
A. Contractor shall ensure that the performance rendered under all subcontracts complies
with all terms and provisions of this Contract as if such performance were rendered by
Contractor. Contractor shall bear full responsibility for performance by all subcontractors.
B. Contractor, in subcontracting any of the performances hereunder, expressly understands
that in entering into such subcontracts, Department is in no way liable to Contractors
subcontractor(s).
C. Contractor assures and shall obtain assurances from all of its subcontractors where
applicable, that no person shall, on the grounds of race, creed, color, disability, national
origin, sex or religion, be excluded from, be denied the benefit of, or be subjected to
reese equipment DEAAG 9 02F,48
y
discrimination under any program or activity funded in whole or in part under this
Contract.
D. As subcontracts and supplier contracts become necessary to carry out the requirements
of this Contract, Contractor covenants to make a good faith effort'to contract with
historically underutilized (disadvantaged) businesses so certified by the State of Texas,
as that term is identified by Section 481.101, Texas Government Code. Contractor shall
make a good faith effort to let at least thirty percent (30%) of the total value of all
subcontracts and supplier contracts for the performance of this Contract to historically
underutilized (disadvantaged) businesses.
SECTION 19. DEBARMENT
By signing this Contract, Contractor certifies that it will not award any funds provided under this
Contract to any party which is debarred, suspended or otherwise excluded from or ineligible for
participation in assistance programs. Contractor further certifies that it is not ineligible under
Section 231.006 of the Texas Family Code Family Code to receive the specified grant, loan, or
payment and acknowledges that this Contract may be terminated and payment may be withheld
if this certification is inaccurate.
SECTION 20. WAIVER
It is expressly understood and agreed by the parties hereto that any right or remedy provided for
In this Contract shall not preclude the exercise of any other right or remedy under this Contract
or under any provision of law, nor shall any action taken in the exercise of any right or remedy
be deemed a waiver of any other rights or remedies. Failure to exercise any right or remedy
hereunder shall not constitute a waiver of the right to exercise that or any other right or remedy
at any time.
SECTION 21. NON ASSIGNMENT
This Contract is not assignable. Notwithstanding any attempt to assign the Contract, Contractor
shall remain fully liable on this Contract and shall not be released from performing any of the
terms, covenants, and conditions of this Contract. Contractor shall be held responsible for all
funds received under this Contract.
SECTION 22. ORAL AND WRITTEN AGREEMENTS
All oral and written agreements between the parties to this Contract relating to the subject
matter of this Contract that were made prior to the execution of this Contract have been reduced
to writing and are contained in this Contract.
reese equipment DEAAG 10 02/W8
SECTION 23. AUTHORIZED RELIEF FROM PERFORMANCE (Force maJeure)
Department may grant relief from performance of the Contract if the Contractor is prevented
from compliance and performance by an act of war, order of legal authority, act of God, or other
unavoidable cause not attributed to the fault or negligence of the Contractor. The burden of
proof for the need for such relief shall rest upon the Contractor. To obtain release based upon
force majeure, the Contractor must file a written request with the Department.
SECTION 24. VENUE
For purposes of litigation pursuant to this Contract, venue shall lie in Travis County, Texas.
WITNESS OUR HANDS, EFFECTIVE DECEMBER 19, 1997:
Accepted and executed on behalf of the City of Lubbock
AeHonorAable indy Sitton, Mayor
City of Lubbock
ATTEST:
Kayth a Parnell,
City Sbdretary
Accepted and executed on behalf of the Texas Department of Economic Development
W. Lane Lanford, Chief Admi trative Officer
Texas Department of Econoffic Development
This Contract is not effective unless signed by the Executive Director of the Texas Department
of Economic Development or by his or her authorized designee.
reese equipment DEAAG 11 021598