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HomeMy WebLinkAboutResolution - 2743 - Funding Agreement - Early Learing Centers Inc - Structure Renovations - 02_11_1988Resolution #2743 February 11, 1988 Item 20 JPB:da RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Community Development Funding Agreement/Contract for structure renovations between the City of Lubbock and Early Learning Centers of Lubbock, Inc. , attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this llth day of February , 1988. B.C. McMINN, MAYOR APPROVED AS TO CONTENT: Sandy Og tre , Community Development Administrator APPROVED AS TO FORM: ,names N. Brewster, Civil Tria Attorney Resolution #2743 February 11, 1988 COMMUNITY DEVELOPMENT FUNDING AGREEMENT/CONTRACT FOR STRUCTURE RENOVATIONS BETWEEN THE CITY OF LUBBOCK AND EARLY LEARNING CENTERS OF LUBBOCK, INC. STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement is entered into this 11th day of February 19 88 , between the City of Lubbock, Texas, a home rule municipal corporation, hereinafter called "City", and Early Learning Centers of Lubbock, Inc., a nonprofit corporation, hereinafter called "Grantee". WITNESSETH: WHEREAS, the City is obligated to do and perform certain services in its undertaking of a Community Development Plan pursuant to the Housing and Development Act of 1974, as amended; and WHEREAS, the Grantee is a nonprofit corporation offering child care services to lower and moderate income working families who are in need of such services by operating day care centers; and WHEREAS, the services provided by the Grantee 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 maintenance and operation of day care facilities by the Grantee to be a public purpose; and WHEREAS, the Grantee and the services it provides have been found to meet the criteria for funding under provision 570-201(e) of the Community Development Regulation for Public Services; 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 the public purpose will be accomplished; the City Council has found that the Grantee has the special expertise, knowledge and experience necessary for the operation of day care facilities and that the City will receive adequate consideration in the form of substantial public benefit; and WHEREAS, the City desires to contract with the Grantee to make available assistance for the renovation of day care facilities; NOW THEREFORE, the City and Grantee do hereby mutually agree as follows: 1. The assistance made available through this contract shall be used by the Grantee solely for the purpose of renovating the following day care facilities: Guadalupe Early Learning Center located at 101 Avenue K and being further described as: METES AND BOUNDS DESCRIPTION of a portion of Lot 1, Block 21, Guadalupe Addition to the City of Lubbock, Lubbock County, Texas, being further described as follows: BEGINNING at a point which is the most Northerly Northwest corner of Lot 1, Block 21, Guadalupe Addition to the City of Lubbock, Lubbock County, Texas; THENCE East a distance of 270.00 feet to a point of curvature; THENCE Southeasterly around a curve to the right, said curve having a radius of 15.00 feet, a central angle of 900, tangent lengths of 15.00 feet, and a chord distance 21.21 feet; THENCE South a distance of 286.50 feet to a set railroad spike; THENCE West a distance of 141.80 feet to a point from whence a 3/4" iron rod set in reference bears West 1.00 foot; THENCE North a distance of 25.00 feet to a set 3/4" iron rod; THENCE West a distance of 158.20 feet to a set 3/4" iron rod; THENCE North a distance of 261.50 feet to a point of curvature; THENCE Northeasterly around a curve to the right, said curve having a radius of 15.00 feet, a central angle of 900, tangent lengths of 15.00 feet, and a chord distance of 21.21 feet to the Point of Beginning. CONTAINS: 86,398.43 square feet; Erskine Early Learning Center located at 2714 Erskine and being further described as Lot 1, City Place Addition to the City of Lubbock, Lubbock County, Texas; Carver Early Learning Center, located at 2509 Elm and being further described as Lots 11, 12, 13, 14 & 15, Block 30, Original Town of the City of Lubbock; Lots 5 & 6, Block 37, Wheelock Second Addition to the City of Lubbock, Lubbock County, Texas; Vanda Early Learning Center, located at 1301 Vanda and being further described as Lot 1, Lubbock Day Care Addition to the City of Lubbock, Lubbock County, Texas; for the use and occupancy by the Grantee as day care facilities for children of lower and moderate income working families. Assistance to be provided for the building renovations will be limited to that work which was recommended by Consultant Thomas 2 Slatton, Ph.D. The assistance shall also be used to pay costs incurred by the Grantee for securing competitive bids. The assistance shall not be used for the purchase of equipment, fixtures, furnishings or other personalty not an integral structural fixture. This contract shall commence on or as of February 25, 1988, and shall terminate on February 24, 1989. 2. The City agrees to provide Grantee assistance from Department of Housing and Urban Development funds in an amount not to exceed $35,400. It is understood and hereby agreed that it shall be the responsibility of the Grantee to perform and do the activities set forth in this agreement as consideration for funds secured and provided by the City hereunder. 3. Grantee agrees to solicit for construction work through the competitive bid process. The competitive bid process shall include formal advertisement, acceptance of sealed bids, and the public opening of those bids. City retains the right to review all bids prior to contract award. Prior to award of the construction contract to the lowest bidder, City will obtain a contractor's clearance from the Department of Housing and Urban Development. In the event the low bid contractor is ineligible, the contract shall be awarded to the next lowest eligible bidder. The Grantee agrees to secure professional assistance as needed in the preparation of plans and specifications for the work to be undertaken. Grantee will secure all professional services through a negotiation process. City will provide Grantee with a copy of the current U.S. Department of Labor's Wage Determination. This wage determination shall be made a part of the bid and contract documents for the construction contract as required by the Davis -Bacon Act. 4. City agrees to conduct a pre -construction conference for the purpose of reviewing with the Contractor the Davis -Bacon Act, the Contract Work Hours and Safety Standards Act, and other applicable federal, state and local labor requirements. 5. City agrees to pay Grantee based upon the receipt of request for funds and project expense summary up to $35,400 for bidding and construction costs following Grantee's initial expense incurred for 3 the above mentioned project. Grantee will make payments in a timely manner to the Contractor as provided in the contract between Grantee and Contractor upon receipt by the Grantee of acceptable certificates of payment previously approved by the Architect employed for this purpose, or the project manager. In the event Grantee has not used the entire funded amount upon the completion of this project, Grantee shall refund City that unused portion within 30 days of the completion of this project. 6. During the period of construction, the City agrees to assume responsibility for Contractor's compliance with all labor standards provisions applicable to the Community Development Block Grant Program. City shall certify on each periodic request for payment that all labor standards provisions have been satisfied by Contractor. 7. Grantee agrees to submit all documents relating to its ownership or right to occupy the hereinabove described structure for approval by the City within ten (10) days after the date of execution of this contract. 8. As soon as practical after execution of this agreement, Grantee agrees to consult with an Architect or other individual qualified to develop general construction criteria prior to development of any plans or drawings. The construction drawings or specifications and all related documents shall be submitted to the City for approval prior to formal bidding of project. 9. It is expressly understood by Grantee that this assistance is made available as part of City's Community Development Block Grant program, and as such, the activities undertaken must comply with all of the rules and regulations established by said program, including those assurances and conditions which are included as Part II of this contract and hereby adopted for all purposes. Such rules and regulations shall be made a part of the contract between the Grantee and the Contractor. Grantee agrees that use of this structure shall be devoted primarily to low and moderate income individuals. 10. Grantee further agrees to make its books and records available at any mutually convenient time for inspection by any 4 representative of the City that City may determine. Grantee also agrees to provide City with such reports as the City may from time to time require as proof of Grantee's compliance with any and all terms and conditions of this contract. All reports and other communications relative to this agreement shall be addressed to the Community Development Administrator or to a delegate expressly named by her. 11. The Grantee agrees to occupy and maintain the structure and grounds in good condition for a period of not less than five (5) years from the date of City acceptance of the construction work. The maintenance of the structure and grounds will be at the Grantee's expense and not at the expense of the City of Lubbock. The Grantee further agrees to maintain adequate insurance on the existing structure and additions for a period of not less than 5 years. 12. In the event that the Grantee vacates or abandons the structure for any reason during this period, the Grantee shall reimburse the City that sum of money expended by the City in connection with the construction of the improvements provided for in Grantee's agreement, including but not limited to, payments for the preparation of plans and specifications, actual construction and supervision cost. The City's right to reimbursement shall be calculated on the basis of the aggregate cost amortized over a period of five (5) years. 13. Grantee agrees to indemnify and hold the City harmless from and against all liability for injuries or death to persons, or damage to property caused by Grantee's use or occupancy of said structure, or by the negligence of its agents or employees, and Grantee shall give to City prompt and timely written notice of any claim instituted which in any way, directly or indirectly, contingently or otherwise, affects or might affect City, and City shall have the right to compromise and defend same to the extent of its own interests. 14. No officer or employee of the City; no member of its governing body; and no other public official of the governing body of the locality in which the project is situated or being carried out who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of this project shall participate 5 in any decision relating to this agreement or Grantee's agreement with Contractor which affects his or her personal interest or have any personal or pecuniary interest, direct or indirect, in either of such agreements or the proceeds thereof. 15. No member of or delegate to the Congress of the United States and no Resident Commissioner shall be admitted to any share or part of this agreement or to any benefit to arise herefrom. 16. The Grantee shall not assign, sell or transfer any interest in this contract without the prior written consent of the City thereof. 17. For purposes of determining venue and the law governing this agreement, activities performed under this agreement are performed in the City and County of Lubbock, State of Texas. 18. This agreement contains the entire agreement of the parties. 19. None of the services covered by this agreement shall be subcontracted without the prior written consent of the City. IN WITNESS WHEREOF, the City and the Grantee have executed this agreement as of the first day above written. Ranett Boyd, City Secreta y APPROVED AS TO CONTENT: Sandy Og tree-,') Community Development Administrator APPROVED AS TO FORM: Akmes P. Blrewster ivil Trial Attorney CITY OF LUBBOCK 'B. C. MCMINN, MAYOR Early Learning Centers of Lubbock, Inc. JoAnne Cotter Executive Director ATTEST: 42z�li�49� 'Betty der on, Secretary PART II - TERMS AND CONDITIONS FUNDING AGREEMENT COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Upon execution of the Funding Agreement of which this Part II -Terms and Conditions is a part, the City of Lubbock through its Community Development Department agrees to provide to the Grantee the Federal assistance under Title I of the Housing and Community Development Act of 1974 (P.L. 93-383) as authorized by the Funding Approval identified therein, subject to the terms and conditions of this Funding Agreement, applicable law, regulations and all other require- ments of the Department of Housing and Urban Development (HUD) now or hereafter in effect. The Funding Agreement is effective with respect to such assistance as of the date the Funding Agreement is executed and is subject to the HUD Community Development Block Grant Regulations at 24 CFR Part 570 and the following General Terms and Conditions: 1. Definitions: Except to the extent modified or supplemented by this Funding Agreement, any term defined in Title I of the Housing and Community Development Block Grant Regulations at 24 CFR Part 570, shall have the same meaning when used herein. (a) Agreement means this Funding Agreement, as described above and any amendments or supplements thereto. (b) City means the City of Lubbock, Texas. (c) Grantee means any City Department or division, the Urban Renewal Agency, or any other department or agency which is designated by the City to receive Community Development Block Grant funds for the purpose of carrying out the Community Development Program. (d) Assurances, when capitalized, means the certifications and assurances submitted with grant applications pursuant to the requirements of 24 CFR Part 570. (e) Assistance provided under this Agreement means the grants and any loans secured by loan guarantees provided under this Agreement. (f) Program means the Community Development program, project, or other activities, including the administration thereof, with respect to which assistance is being provided under this Agreement. 2. "Section 3" Compliance in the Provision of Training Employment and Business Opportunities: This Agreement is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.0 1701u), as amended, the HUD regula- tions issued pursuant thereto at 24 CFR Part 135, and any applicable rules and orders of HUD issued thereunder prior to the HUD authorization of the Funding Approval. The Grantee agrees that it shall be bound by, and shall cause or require to be inserted in full in all contracts and subcontracts for work financed in whole or in part with assistance provided under this Agreement, the Section 3 clause set forth below: TRAINING, EMPLOYMENT, AND CONTRACTING OPPORTUNITIES FOR BUSINESSES AND LOWER INCOME PERSONS IN CONNECTION WITH ASSISTED PROJECT. A. The work to be performed under this Contract is on a project assisted under a program providing direct Federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in or owned in substantial part by persons residing in the area of the project. B. The parties to this Contract will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR 135, (published in 38 Federal Register 29220, October 23, 1973), all applicable rules and orders of the Department issued thereunder prior to the execution of this Contract. The parties to this Contract certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. C. The contractor will develop and implement an affirmative action plan for utilizing business concerns located within or owned in substantial part by persons residing in the area of the project; and making of a good faith effort, as defined by the regulations, to provide training, employment, and business opportunities required by Section 3 of the Housing and Urban Development Act of 1968. D. The contractor will send to each labor organization or representative or workers with which he has a collective bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization or workers' representative of his commitments under this Section 3 clause and shall post copies of the notice in conspic- uous places available to employees and applicants for employment or training. E. The contractor will include this Section 3 clause in every subcontract for work in connection with the project and will, at the direction of the applicant for or recipient of Federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR 135. The contractor will not subcontract with any subcontractor 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 subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. F. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of the contract, shall be a condition of the Federal financial assistance provided to the project, binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall subject the applicant or recipient, its contractors and subcontrac- tors, its successors, and assigns to those sanctions specified by the grant or loan agreement or contract through which Federal assistance is provided, and to such sanctions as are specified by 24 CFR 135. The Grantee shall provide such copies of 24 CFR Part 135 as may be neces- sary for the information of parties to contracts required to contain the above Section 3 clause. 3. Flood Disaster Protection: The agreement is subject to the requirements of the Flood Disaster Protec- tion Act of 1973 (P.L. 93-234). No portion of the assistance provided under this Agreement is approved for acquisition or construction purposes as defined under Section 3(a) of said Act, for use in an area identified by the Secretary as having special flood hazards which are located in a community not then in compliance with the requirements for participation in the national flood insurance program pursuant to Section 201(d) of said Act; and the use of any assistance provided under this Agreement for such acquisition or construction in such identified areas in communities then participating in the national flood insurance program shall be subject to the mandatory purchase of flood insurance requirements of Section 102(a) of said Act. Any contract or agreement for the sale, lease, or other transfer of land. acquired, cleared or improved with assistance provided under this Agreement shall contain, if such land is located in an area identified by the Secretary as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended 42 U.S.C. 4001 et seq., provisions obligating the transferee and its successors or assigns to obtain and maintain, during the ownership of such land, such flood insurance as required with respect to financial assistance for acquisition or construction purposes under Section 102(a) of the Flood Disaster Protection Act of 1973. Such provisions shall be required notwithstanding the fact that the construction on such land is not itself funded with assistance provided under this Agreement. 4. Equal Employment Opportunity: (a) Activities and contracts not subject to Executive Order 11246, as amended. In carrying out the program, the Grantee shall not discrim- inate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Grantee shall take affirmative action to insure that applicants for employment are employed, and the employees are treated during their employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruit- ment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Grantee shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Govern- ment setting for the provisions of this nondiscrimination clause. The Grantee shall state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. The Grantee shall incorporate the foregoing requirements of this paragraph (a) in all of its contracts for program work, except contracts governed by paragraph (b) of this section, and will require all of its contractors for such work to incorporate such requirements in all subcontracts for program work. (b) Contracts subject to Executive Order 11246, as amended. Such con- tracts shall be subject to HUD Equal Employment Opportunity regula- tions at 24 CFR Part 130 applicable to HUD assisted construction contracts. The Grantee shall cause or require to be inserted in full in any nonexempt contract and subcontract for construction work, or modification thereof, as defined in said regulations, which is paid for in whole or in part with assis- tance provided under this Agreement, the following equal opportunity clause: During the performance of this Contract, the contractor agrees as follows: (1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion, or transfer, recruit- ment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause. (2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. (3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding a notice to be provided by the Contract Compliance Officer advising the said labor union or workers' repre- tatives of the contractor's commitment under this section and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) The contractor will comply with all provisions to Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (5) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records and accounts by the City and by the Department of Housing and Urban Development and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (6) In the event of the contractor's noncompliance with the nondiscrimina- tion clauses of this contract or with any of such rules, regulations, or orders, this contract may be canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contract procedures authorized in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. (7) The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the Department may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Department, the contractor may request the United States to enter into such litigation to protect the interest of the United States. The Grantee further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work; provided, that if the Grantee so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdi- vision of such government which does not participate in work on or under the contract. The Grantee agrees that it will assist and cooperate actively with the City, HUD, and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor; that it will furnish the City, HUD, and the Secretary of Labor such information as they may require for the supervision of such compliance; and that it will otherwise assist the City and HUD in the discharge of HUD's primary responsibility for securing compliance. The Grantee further agrees that it will refrain from entering into any contract or contract modification subject to Executive order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibi- lity for, Government contracts and federally assisted construction contracts pursuant to the executive order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the Department or the Secretary of Labor pursuant to Part I1, Sub -Part D of the executive order. In addition, the Grantee agrees that if it fails or refuses to comply with these undertakings, the City or the Depart- ment of Housing and Urban Development may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part the grant or loan guarantee; refrain from extending any further assistance to the Grantee under the program with respect to which the failure or refusal occurred until satis- factory assurance of future compliance has been received from such Grantee; and refer the case to the Department of Justice for appropriate legal proceedings. 5. Age Discrimination Act of 1975 and Rehabilitation Act of 1973 Section 109 of the Act further provides that any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.C.C. 6101 et seq.) or with respect to an otherwise qualified handicapped individual as provided in Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) shall also apply to any program or activity funded in whole or in part with funds made available pursuant to the Act. 6. Lead -Based Paint Hazards: The construction or rehabilitation of residential structures with assis- tance provided under this Agreement is subject to the HUD Lead -Based Paint regulations, 24 CFR Part 35. Any grants or loans made through the Grantee for the rehabilitation of residential structures with assistance provided under this Agreement shall be made subject to the provisions for the elimination of lead -based paint hazards under Sub -Part B of said regulations, and the Grantee shall be responsible for the inspections and certificates required under Section 35.14(f) thereof. 7. Compliance with Air and Water Acts: This Agreement is subject to the requirements of the Clean Air Act, as amended, 42 U.S.C. 1857 at seq., the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq., and the regulations of the Environmental Protection Agency with respect thereto, at 40 CFR Part 15, as amended from time to time. In compliance with said regulations, the Grantee shall cause or require to be inserted in full in all contracts and subcontracts with respect to any nonexempt transaction thereunder funded with assistance provided under the Agreement, the following requirements: 1. A stipulation by the contractor of subcontractors that any facility to be utilized in the performance of any nonexempt contract or subcon- tract is not listed on the List of Violating Facilities issued by the Environmental Protection Agency (EPA) pursuant to 40 CFR 15.20. 2. Agreement by the contractor to comply with all the requirements of Section 114 of the Clean Air Act, as amended, (42 U.S.C. 1857c-8) and Section 308 of the Federal Water Pollution Control Act, as amended, (33 U.S.C. 1318) relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. (3) A stipulation that as a condition for the award of the contract prompt notice will be given of any notification received from the Director, Office of the Federal Activities, EPA, indicating that a facility utilized for the contract is under consideration to be listed on the EPA of Violating Facilities. (4) Agreement by the contractor that he will include or cause to be included the criteria and requirements in paragraphs (1) through (4) of this section in every nonexempt subcontract and requiring that the contractor will take such action as the Government may direct as a means of enforcing such provisions. In no event shall any amount of the assistance provided under this Agree- ment be utilized with respect to a facility which has given rise to a conviction under Section 113(c)(1) of the Clean Air Act or Section 309(c) of the Federal Water Pollution Control Act. 8. Federal Labor Standards Provisions: Except with respect to the rehabilitation of residential property designed for residential use for less than eight families, the Grantee and all contrac- tors engaged under contracts in excess of $2,000 for the construction, prosecu- tion, completion or repair of any building or work financed in whole or in part with assistance provided under this Agreement, shall comply with HUD require- ments pertaining to such contracts and the applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 3, 5 and 5a, governing the payment of wages and the ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than those required under such regulations are imposed by state or local law, nothing hereunder is intended to relieve the Grantee of its obligation, if any, to require payment of the higher rates. The Grantee shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of 29 CFR 5.5 and, for contracts in excess of $10,000, 29 CFR 5a.3. No award of the contracts covered under this Section of the Agreement shall be made to any contractor who is at the time ineligible under the provisions of any applicable regulations of the Department of Labor to receive an award of such contract. 9. Nondiscrimination Under Title VI of the Civil Rights Act of 1964: This Agreement is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and HUD regulations with respect thereto including the regulations under 24 CFR Part I. In the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, the Grantee shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrim- ination upon the basis of race, color, religion, sex, or national origin, in the sale, lease or rental, or in the use or occupancy of such land or any improve- ments erected or to be erected thereon, and providing that the City and the United States are beneficiaries of and entitled to enforce such covenant. The Grantee in undertaking its obligation in carrying out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate. 10. Obligations of Grantee with Respect to Certain Third Party Relationships: The Grantee shall remain fully obligated under the provisions of the Agreement notwithstanding its designation of any third party or parties for the undertaking of all or any part of the program with respect to which assistance is being provided under lawful requirements of the City necessary to insure that the program with respect to which assistance is being provided under this Agreement to the Grantee is carried out in accordance with the City's Assurances and certificates including those with respect to the assumption of environmental responsibilities of the City under Section 104(h) of the Housing and Community Development Act of 1974. 11. Interest of Certain Federal Officials: No member of or Delegate to the Congress of the United States, and no Resident Commissioner, shall be admitted to any share or part of this Agreement or to any benefit to arise from the same. 12. Interest of Members, Officers, or Employees of City, Members of Local Governing Body, or Other Public Officials: No member, officer, or employee of the City, or its designees or agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercise any functions or responsibilities with respect to the program during his tenure or for one year thereafter; shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the program assisted under the Agreement. The Grantee shall incorporate, or cause to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of this Section. 13. Prohibition Against Payments of Bonus or Commission: The assistance provided under this Agreement shall not be used in the payment of any bonus or commission for the purpose of obtaining HUD approval of applications for additional assistance, or any other approval or concurrence of HUD required under this Agreement, Title I of the Housing and Community Develop- ment Act of 1974 or HUD regulations with respect thereto; provided, however, that reasonable fees or bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not hereby prohibited if otherwise eligible as program costs.