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HomeMy WebLinkAboutResolution - 2004-R0163 - Wellness Center Relocation Project Agreement - TTUHSC - 04_06_2004Resolution No, 2004-RO163 April 6, 2004 Item No. 17 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 an Agreement and all related documents between the City of Lubbock and the Texas Tech University Health Sciences Center for the "Wellness Center Relocation" project. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 6th ATTEST: Reb cca Garza, City Secretary APPROVED AS TO CONTENT: k" 14�:� Nancy Hq Commu evelopm t irector APPROVED AS TO FORM: day of _ ril , 2004. j4el ARC DO GAL, MAYOR Linda L. Chamales, Supervising Attorney Office Practice Section LcCity Att/Linda/RES-TTU-Wellness Center Relocation March 29, 2004 ILNW 04254 0 Resolution No. 2004—RO163 April 6, 2004 Item No. 17 COMMUNITY DEVELOPMENT FUNDING AGREEMENT BETWEEN THE CITY OF LUBBOCK AND TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER STATE OF TEXAS § COUNTY OF LUBBOCK THIS AGREEMENT, entered this 23rd day of March, 2004 by and between the CITY OF LUBBOCK (herein called the "City") and the TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER (herein called the "TTUHSC or TTUHSC"). WHEREAS, the City has applied for and received funds from the United States Government, Department of Health and Human Services (DHHS) under Title I of the Housing and Community Development Act of 1974 for the project titled "Wellness Center Relocation"; and WHEREAS, the City wishes to use such funds to assist the TTUHSC School of Nursing which operates a non-profit Wellness Center offering health services to low- and moderate -income individuals and families; and WHEREAS, the City is obligated to do and perform certain services in its undertaking of a Community Development Block Grant Program (CDBG) pursuant to the Housing and Development Act of 1975, as amended; and WHEREAS, the services provided by TTUHSC benefit citizens of the City of Lubbock and constitute a valuable public service; and WHEREAS, the City Council of the City of Lubbock has declared the TTUHSC Wellness Center programs to be a public purpose and the provision of these services to be a predominate purpose of this transaction; and WHEREAS, TTUHSC and the services it provides have been found to meet the criteria for funding under provision 24 CFR 570.201; and WHEREAS, the accomplishment of the above public purpose is the predominant purpose of this transaction, continuing supervision by the City together with statutory and contractual requirements provide sufficient assurance that this public purpose will be accomplished; and an audit provides sufficient protection of the handling of public money; and 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 1 of 21 ILNW 04259 0 WHEREAS, the City Council has found that TTUHSC School of Nursing has the special expertise, knowledge and experience necessary for the Wellness Center and that the City will receive adequate consideration in the form of substantial public benefit; and WHEREAS, the City desires to contract with TTUHSC to make available funds for the relocation and construction of the Wellness Center. NOW, THEREFORE, it is agreed between the parties hereto that: I. SCOPE OF SERVICE A. Activities TTUHSC will be responsible for administering a CDBG Year 2003-2004 grant (HUD Grant #80013.8815.08279) that will be applied to the construction of a Wellness Center building in a commercially reasonable manner and consistent with applicable CDBG program standards required as a condition of providing these funds. Such program will include the activities eligible under the Community Development Block Grant Program. TTUHSC agrees to construct a Wellness Center in the Harwell Neighborhood. The Center must be built within the following geographic boundaries: the northern border would be 34`h Street, the southern would be 50`h Street, the western would be I-27, and the eastern would be Avenue A. The Center will offer preventive as well as clinical services to benefit low and moderate income persons. B. National Objectives TTUHSC certifies that the activities carried out with funds provided under this Agreement will meet the CDBG program's National Objective of benefiting low/moderate income persons, as defined in 24 CFR Part 570.208. C. City Responsibilities City agrees to provide TTUHSC assistance from Department of Housing and Urban Development funds in an amount not to exceed Two hundred fifty thousand dollars and no cents ($250,000.00) in return for TTUHSC performing the activities set forth in this Agreement as consideration for said funds. 2. It is expressly understood and agreed by the parties hereto that City's responsibilities are contingent upon the actual receipt of adequate federal funds to meet City's liabilities under this agreement. If adequate funds are not available to make payments under this agreement, City shall notify TTUHSC in within three (3) working days of receipt of notice by City. City shall terminate this agreement and will not be liable for failure to make payments to TTUHSC under this agreement. 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 2 of 21 ILNW 04259 0 3. City shall not be liable to TTUHSC for any costs incurred by TTUHSC, or any portions thereof, which have been paid to TTUHSC or which are subject to payment to TTUHSC, or which have been reimbursed to TTUHSC or which are subject to reimbursement to TTUHSC by any source other than City or TTUHSC. 4. City shall not be liable to TTUHSC for any costs incurred by TTUHSC which are not allowable costs, as set forth in 24 CFR §570.207. 5. City shall not be liable to TTUHSC for any costs incurred by TTUHSC or for any performances rendered by TTUHSC which are not strictly in accordance with the terms of this agreement. 6. City shall not be liable to TTUHSC for any costs incurred by TTUHSC in the performance of this agreement which have not been billed to City by TTUHSC within 120 days. 7. City shall not be liable for costs incurred or performances rendered by TTUHSC before commencement of this agreement or after termination of this agreement. D. TTUHSC's Responsibilities TTUHSC shall not begin any part of construction activities until notified by City that funds are available. 1. TTUHSC shall perform all activities in accordance with its budget, applicable laws and regulations set forth herein; the assurance, certifications, and all other terms, provisions, and requirements set forth in this agreement. 2. TTUHSC shall submit to City such reports on the operation and performance of this agreement on a monthly basis. 3. In addition to the limitations on liability otherwise specified in this agreement, it is expressly understood and agreed by the parties hereto that if TTUHSC fails to submit to City in a timely and satisfactory manner any report required by this agreement, City may, at its sole option and in its sole discretion, withhold any or all payments otherwise due or requested by TTUHSC hereunder. If City intends to withhold such payments, it shall notify TTUHSC in writing ten business days prior to the effective date of its decision and the reasons therefor. Payments withheld pursuant to this paragraph may be held by City until such time as the delinquent obligations for which funds are withheld are fulfilled by TTUHSC. 4. If City identifies an overpayment to TTUHSC, or payments which have not been spent by TTUHSC strictly in accordance with the terms of this agreement, City shall provide written notice to TTUHSC. TTUHSC shall 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 3 of 21 ILNW 04259 0 have ten (10) business days after receipt of notice to provide information about or correct a claim made by the City for overpayment or erroneous spending. If funds are due from TTUHSC, such refund shall be made by TTUHSC to City within thirty (30) working days after the ten business day cure period. 5. TTUHSC agrees to comply with applicable uniform administrative requirements, as described in 24 CFR 570.502. 6. TTUHSC agrees to carry out the activities under this agreement in compliance with all Federal laws and regulations described in 24 CFR Chapter 570 subpart K except TTUHSC does not assume the City's responsibility for initiating the review process under the provisions of 24 CFR part 52. E. TTUHSC's Match: 1. TTUHSC's application for Community Development Block Grant (CDBG) funds is contingent upon TTUHSC supplementing its request with additional funds from sources other than CDBG. A minimum of 25% or more of the total project costs must come from non-CDBG sources. F. Levels of Accomplishment/ Timeline In addition to the normal administrative services required as part of this Agreement, TTUHSC agrees to provide the following levels of program services: 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 4 of 21 ILNW 04254 0 Activi Steps to complete the Wellness Center. Select future site of center. Inspections. Submit construction plans to Community Development staff for approval. Obtain relevant Davis -Bacon Wage Determination from CD staff. These wage rates must be used for the entire construction project. Implement formal bid process to enable the TTUHSC to identify the successful contractor. Obtain all necessary construction permits TTUHSC or its representative will be responsible for monitoring progress of construction. TTUHSC will monitor that contractor submits Davis -Bacon payroll sheets as required. Complete construction of facility. Timeline TTUHSC will proceed expeditiously to plan and construct the Wellness Center to be completed not later than March 1, 2006 Total Units * / Year 1 Wellness Center Note: * Units means the number of unduplicated participants that will benefit directly from the program. 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 5 of 21 ILNW 04259 0 G. Staffing for TTUHSC Staff related to the entire project: Staff Member General Program Duties Christina Esperat Oversight of project H. Performance Monitoring The City will monitor TTUHSC's for compliance with goals and requirements as required herein once annually, or as it deems necessary in accordance with the regulations. If the City identifies substandard performance, City will notify TTUHSC in writing within five business days describing the substandard performance, and TTUHSC shall have five business days to respond. If the performance is not corrected or accepted by City within thirty days from receipt of written notice from City, or such other time as may be mutually agreed in writing, then City may initiate contract suspension or termination procedures. II. TIME OF PERFORMANCE This Grant, and TTUHSC's services thereunder shall start on March 23, 2004, and terminate on March 1, 2006 Construction shall be completed and funds disbursed by March 1, 2006. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which TTUHSC remains in control of CDBG funds or other assets, including program income. Any extension shall be mutually agreed to in writing and executed prior to the termination date of this Agreement. TTUHSC will maintain the use of this building as a public facility for a minimum of five years from date of completion of construction. TTUHSC will also be required to submit annual reports regarding services rendered during this five (5) year period or for the length of time of the Return of Investment period, whichever is longer. III. BUDGET Line Item: Inspections, Design, and Construction of Wellness Center TOTAL: Amount: $250,000.00 $250,000.00 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 6 of 21 ILNW 04259 0 City may require a more detailed budget breakdown than the one contained herein, and upon request, TTUHSC shall provide such supplementary budget information in a timely fashion. Any changes to this budget must be approved in writing by the City. IV. PAYMENT V. VI. It is expressly agreed and understood that the total amount to be paid by the City under this contract shall not exceed $250,000.00. Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in Paragraph III herein and in accordance with performance. Expenses for general administration shall also be paid against the line item budgets specified in Paragraph III and in accordance with performance. Payments may be contingent upon certification of the TTUHSC's financial management system in accordance with the standards specified in OMB Circular A-110. NOTICES Communication and details concerning this contract shall be directed to the following contract representatives: C�y Todd Steelman City of Lubbock P. O. Box 2000 Lubbock, TX 79457 SPECIAL CONDITIONS TTUHSC Christina Esperat TTUHSC 3601 4`h Street, MS 6264 Lubbock, TX 79430 Return of Investment. TTUHSC shall pay back 25% of grant funds used to design and construct the School of Nursing Wellness Center. TTUHSC will have the option of paying back in one lump sum 30-days after completion of the project or equal payments for up to ten years with no interest charged. A service fee of $4 (Four dollars) per month will be charged if making monthly payments. If the payment is not received by the 161h day of the month, a late payment charge which shall be from day-to-day be equal to the lesser of: (a) Four percent (4%) of the monthly balance due (the "Contract Rate"), or (b) the Maximum Rate allowed by Texas law. The term "Maximum Rate," as used herein, shall mean, with respect to the holder hereof, the maximum nonusurious interest rate, if any, that at any time, or from time to time may under applicable law be contracted for, taken, reserved, charged or received on the indebtedness by this Contract. 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 7 of 21 ILNW 04259 0 Notwithstanding the foregoing, if at any time the Contract Rate shall exceed the Maximum Rate, thereby causing the late payment to be limited to the Maximum Rate, then any subsequent reductions in the Contract Rate shall not reduce the rate of late payments which would have accrued hereon if the Contract Rate had at all times been in effect. Use as a Public Facility. TTUHSC agrees to maintain Wellness center in its current use for a minimum of five years, or for the duration of the payback of the 25% which ever is longer. VII. GENERAL CONDITIONS A. General Compliance TTUHSC agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the Housing and Urban Development regulations concerning Community Development Block Grants (CDBG). TTUHSC also agrees to comply with all other applicable Federal, state and local laws, regulations, and policies governing the funds provided under this contract. TTUHSC further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. B. "Independent Contractor" Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the City and TTUHSC. TTUHSC shall at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The City shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation insurance as the TTUHSC is an independent contractor. C. Workers' Compensation TTUHSC shall provide Workers' Compensation insurance coverage for all of its employees involved in the performance of this contract. D. Insurance and Bonding TTUHSC shall require its construction contractors to carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage, and as a minimum, shall purchase a blanket fidelity bond covering all employees in an amount equal to the construction contract amount. TTUHSC shall comply with the bonding and insurance requirements of OMB Circular A- 110, Bonding and Insurance. E. Grantor Recognition 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 8 of 21 ILNW 04259 0 TTUHSC shall provide recognition for DHHS HUD in providing funding for this project. All activities, facilities, and items utilized pursuant to this contract shall be prominently labeled as to funding source. In addition, TTUHSC will include a reference to the support provided herein in all publications made possible with funds made available under this contract. F. Amendments The City or TTUHSC may amend this Agreement at any time, provided that such amendments make specific reference to this Agreement and are executed in writing, signed by a duly authorized representative of both parties and approved by the City's governing body. Such amendments shall not invalidate this Agreement nor relieve or release the City or TTUHSC from its obligations under this Agreement. The City may, in its discretion, and with notice to TTUHSC, amend this Agreement to conform with applicable Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both City and TTUHSC. G. Suspension or Termination Either party may terminate this contract at any time, with or without cause, by giving written notice to the other party of such termination and specifying the effective date thereof at least sixty (60) days before the effective date of such termination. Partial termination of the Scope of Service in Section I.A. above may only be undertaken with the prior approval of the City. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by TTUHSC under this Agreement shall, at the option of the City, become the property of the City, and TTUHSC shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. The City may also suspend or terminate this Agreement, in whole or in part, if TTUHSC fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the City may declare the TTUHSC ineligible for any further participation in the City's contracts, in addition to other remedies as provided by law. In the event there is probable cause to believe TTUHSC is in noncompliance with any applicable rules or regulations, the City may withhold up to fifteen percent (15%) of said contract funds until such time as TTUHSC is found to be in compliance by the City, or is otherwise adjudicated to be in compliance. The City may also terminate this agreement in the event of an emergency or disaster, whether an act of God, natural or manmade, by giving twenty-four (24) hour notice. The 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 9 of 21 ILNW 04254 0 City may give said notice verbally to TTUHSC, to be followed in writing within five business days. Any expenditures incurred prior to receiving notice will be reimbursed; however, in no event shall the City pay any expenses incurred after notice of termination is received by TTUHSC. VIII. ADMIlVISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The TTUHSC agrees to comply with OMB Circular A-110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The TTUHSC shall administer its program in conformance with OMB Circulars A- 122, "Cost Principles for Non -Profit Organizations". These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record -Keeping 1. Records to be Maintained The TTUHSC shall maintain all records required by the Federal regulations specified in 24 CFR Part 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets the National Objective of the CDBG program of benefiting low/moderate income persons. C. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 10 of 21 ILNW 04259 0 2. Retention TTUHSC shall retain all records pertinent to expenditures incurred under this contract for a period of four (4) years after the termination of all activities funded under this Agreement. Records for non -expendable property acquired with funds under this contract shall be retained for four (4) years after final disposition of such property. Records for any displaced person must be kept for four (4) years after he/she has received final payment. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the four-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the four-year period, whichever occurs later. 3. Service Data TTUHSC shall maintain aggregate data demonstrating numbers of patients served which shall be made available to City monitors or their designees for review upon request. 4. Disclosure TTUHSC and City understand that patient information collected in the course of Wellness Center activities is private, and the use or disclosure of such information is prohibited unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian, unless otherwise required by law. 5. Close -Outs TTUHSC's obligation to the City shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the City), final close-out reports and determining the custodianship of records. 6. Audits & Inspections All TTUHSC records with respect to any matters covered by this Agreement shall be made available to the City, DHHS, their designees or other applicable federal government agencies at any time during normal business hours, as the City or DHHS deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports shall be provided by City to TTUHSC who shall have thirty (30) days to respond. If corrections are mutually agreed to be necessary between City and TTUHSC, and TTUHSC does not comply with the 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 11 of 21 ILNW 04254 0 corrections within an agreed time period, this will constitute a violation of this contract and may result in the withholding of future payments. TTUHSC provides a State of Texas Annual Financial Report which is under audit control of the Texas State Auditor's Office. C. Reporting and Payment Procedures 1. Pa3ment Procedures The City will pay funds available under this contract to TTUHSC based upon information submitted by TTUHSC and consistent with any approved budget and City policy concerning payments. With the exception of certain advances, payments will be made for eligible expenses actually incurred by TTUHSC, and not to exceed actual cash requirements. Payments will be adjusted by the City in accordance with advance fund and program income balances available in TTUHSC accounts. In addition, following thirty (30) days written notice and opportunity for discussion between the parties, the City reserves the right to liquidate funds available under this contract for costs incurred by the City on behalf of TTUHSC. 2. Performance Reports TTUHSC shall submit to City a monthly Performance Report in a format prescribed by City and shall include the amount of funds obligated and expended for each of the eligible activities. The initial monthly Performance and Financial Report is required by the Health Resources and Services Administration (HRSA) of the U.S. Department of Health and Human Services. TTUHSC shall continue to submit the reports monthly no later than the 20`h of each month. The final financial report and request for reimbursement must be submitted not later than within 90 days of the end of the project period. Reporting will continue until all Community Development Block Grant amounts are reported and expended. TTUHSC shall submit regular Progress Reports to the City in the form, content, and frequency as required by the City. D. Procurement 1. Compliance TTUHSC shall comply with its current policy concerning the purchase of equipment and shall maintain inventory records of all non -expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets other than facility assets purchased with such funds (unexpended program 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 12 of 21 ILNW 04259 0 income, property, equipment, etc.) shall revert to the City upon termination of this contract. 2. OMB Standards TTUHSC shall procure all materials, property, or services in accordance with the requirements of OMB Circular A-110, Procurement Standards, and shall subsequently follow Property Management Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. 3. Travel The TTUHSC shall obtain written approval from the City for any travel outside the metropolitan area with funds provided under this contract. IX. RELOCATION, REAL PROPERTY ACQUISITION AND ONE -FOR -ONE HOUSING REPLACEMENT If applicable, the TTUHSC agrees to comply with (a) the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), and implementing regulations at 49 CFR Part 24 and 24 CFR 570.606(b); (b) the requirements of 24 CFR 570.606(c) governing the Residential Antidisplacement and Relocation Assistance Plan under Section 104(d) of the HCD Act; and (c) the requirements in 570.606(d) governing optional relocation policies. (The City may preempt the optional policies. X. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights Compliance TTUHSC agrees to comply and to require all subcontractors to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination TTUHSC will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. TTUHSC will take affirmative action to prevent discrimination in its employment 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 13 of 21 ILNW 04259 0 practices. Such employment practices include, but are not limited to, the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. TTUHSC agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause. 3. Section 504 TTUHSC agrees to comply with any Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 706), which prohibits discrimination against the handicapped in any Federally -assisted program. The City shall provide TTUHSC with any guidelines necessary for compliance with that portion of the regulations in force during the term of this contract. B. Affirmative Action 1. Approved Plan As an institution of higher education in the State of Texas, TTUHSC receives federal funding and complies with the principles as provided in Presidential Executive Order 11246 of September 24, 1965 and affirmative action program regulations. 2. WIMBE TTUHSC will apply its current policies regarding maximum practicable opportunity for minority- and women -owned business enterprises to participate in the performance of this contract. As used in this contract, the term "minority and female business enterprise" means a business at least fifty-one percent (51 %) owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish-speaking, Spanish - surnamed or Spanish -heritage Americans, Asian -Americans, and American Indians. TTUHSC may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. 3. Access to Records TTUHSC shall furnish and cause each of its own subrecipients or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the City, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. 4. Notifications 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 14 of 21 ILNW 04254 0 If applicable, the TTUHSC will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or worker's representative of the TTUHSC's commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 5. EEO/AA Statement TTUHSC will, in all solicitations or advertisements for employees placed by or on behalf of the TTUHSC, state that it is an Equal Opportunity or Affirmative Action employer. 6. Subcontract Provisions TTUHSC will include the provisions of Paragraphs X.A., Civil Rights, and B., Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own subrecipients or subcontractors. C. Employment Restrictions 1. Prohibited Activity TTUHSC is prohibited from using funds provided herein or personnel employed in the administration of the program for: political activities; sectarian or religious activities; and lobbying. political patronage, and nepotism activities. 2. Labor Standards TTUHSC agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis -Bacon Act as amended, the provisions of Contract Work Hours and Safety Standards Act, the Copeland "Anti -Kickback" Act (40 U.S.C. 276a-276a-5; 40 USC 327 and 40 USC 276c) and all other applicable Federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this contract. TTUHSC shall maintain documentation which demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the City for review upon request. If applicable, TTUHSC agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance provided under this contract, shall comply with Federal requirements adopted by the City pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 15 of 21 ILNW 04254 0 wages and ratio of apprentices and trainees to journeyworkers; provided, that if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve TTUHSC of its obligation, if any, to require payment of the higher wage. TTUHSC shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. 3. "Section 3" Clause a. Compliance Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this contract, shall be a condition of the Federal financial assistance provided under this contract and binding upon the City, the TTUHSC and any of TTUHSC's subrecipients and subcontractors. Failure to fulfill these requirements shall subject the City, TTUHSC and any of the TTUHSC's subrecipients and subcontractors, their successors and assigns, to those sanctions specified by the Agreement through which Federal assistance is provided. TTUHSC certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. TTUHSC further agrees to comply with these "Section 3" requirements and to include the following language in all subcontracts executed under this Agreement: "The work to be performed under this contract is a project assisted under a program providing direct Federal financial assistance from HUD and is subject to the requirements of Section 3 (of the Housing and Urban Development Act of 1968), as amended, 12 U.S.C. 1701, Section 3 requires that, to the greatest extent feasible, opportunities for training and employment be given to low- and very low-income residents of the project area, and contracts for work in connection with the project be awarded to business concerns that provide economic opportunities for low- and very low-income persons residing in the metropolitan area in which the project is located." TTUHSC certifies and agrees that no contractual or other legal incapacity exists which would prevent compliance with these requirements. b. Notifications If applicable, The TTUHSC agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 16 of 21 ILNW 04259 0 organization or worker's representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. C. Subcontracts TTUHSC will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the DHHS. TTUHSC will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. D. Conduct 1. Assignability TTUHSC shall not assign or transfer any interest in this contract without the prior written consent of the City thereto; provided, however, that claims for money due or to become due to TTUHSC from the City under this contract may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the City. 2. Subcontracts a. Approvals TTUHSC will follow its existing procurement procedures for any subcontracts related to the performance of this agreement. b. Monitoring TTUHSC will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. C. Content TTUHSC shall cause all of the provisions of this contract in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement. d. Selection Process 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 17 of 21 ILNW 04254 0 The TTUHSC shall solicit bids and proposals and award subcontracts let in the performance of this Agreement on a fair and open competition basis. Executed copies of all subcontracts shall be forwarded to the City along with documentation concerning the selection process. e. Suspension / Disbarment TTUHSC shall not enter into any subcontracts with an agency, business or individual that has been suspended or disbarred by the Department of Housing and Urban Development. 3. Hatch Act TTUHSC agrees that no funds provided, nor personnel employed under this contract, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V United States Code regarding lobbying activities. 4. Conflict of Interest TTUHSC agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Agreement. The TTUHSC further covenants that, in the performance of this Agreement, no person having such a financial interest shall be employed or retained by the TTUHSC hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the City, or of any designated public agencies or subrecipients which are receiving funds under the CDBG Entitlement program. 5. Lobbying TTUHSC hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 18 of 21 ILNW 04254 0 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, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; C. It will require that the language of paragraph (d) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly; and d. Lobbying Certification - Paragraph d This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U. S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 6. Copyrig_ht If this contract results in any copyrightable material or inventions, the City and/or grantor agency reserves the right to royalty -free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work or materials for government purposes. 7. Religious Organization TTUHSC agrees that funds provided under this contract will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CFR 570.2006). XI. ENVIRONMENTAL CONDITIONS A. Air and Water TTUHSC agrees to comply with the following requirements insofar as they apply to the performance of this contract: Clean Air Act, 42 U.S.C., 7401, et seq. 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 19 of 21 ;100(4- 1L0 \ U S ILNW 04259 0 Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 50, as amended. B. Flood Disaster Protection In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 USC 4001), if applicable, TTUHSC shall obtain flood insurance under the National Flood Insurance Program for activities located in an area identified by FEMA as having special flood hazards, as a condition of financial assistance for acquisition or construction purposes (including rehabilitation). C. Lead -Based Paint TTUHSC agrees that any construction or rehabilitation of residential structures with assistance provided under this contract shall be subject to HUD Lead -Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35 and will comply with all applicable requirements. D. Asbestos City agrees to comply with the Texas Asbestos Health Protection Act set forth at Article 4477-3a Section 12 of the Texas Civil Statutes and the National Emission Standard for Asbestos Regulations set forth at 40 CFR Part 61. E. Historic Preservation TTUHSC agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR, Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this contract. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty (50) years old or older or that are included on a Federal, state, or local historic property list. XII. SEVERABILITY If any provision of this Agreement is held invalid, provided that any invalid provision is not material to the overall purpose and operation of this agreement, and the remainder of the 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 20 of 21 ILNW 04259 0 Agreement shall not be affected thereby, and all other parts of this Agreement shall nevertheless be in full force and effect. IN WITNESS WHEREOF, the Parties have executed this contract as of the date first written above. CITY OF LUBBOCK ATTEST: Rebecca Garza, City Secretary APPROVED AS TO CONTENT: �vt Amy Sims, Assistant City Attorney TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER Elmo Cavin EXECUTIVE VICE PRESIDENT FED. I.D.# 2003-2004 CDBG Funding Agreement v. 3-11-04B Page 21 of 21