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HomeMy WebLinkAboutContracts & Agreements_10-1967DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 4rA GOLDEN GATE AVENUE. BOX 3M. SAN FRANCISCO. CALIFORNIA 04102 !� etrcpo: itaa Development Office RCGWN Vl April 5, 1967 City ? ^n acer City of acdlands City hall z p. 0. Box 280 ' 1 Redlands, California 92373 tit Dear Xr, Ebzrit%. Subject: Calif-0SA-41 Prospect Park This responds to your letter of :`arch 22 in which an extension of time was requested for the City to complete the acquisition of land for Prospect Park. Based o",.''. your advice that the Citizens Cowmittee has already col- lected $130,000 ,and that the Committee anticipates little or so ro'•.Olo s in collecting the 'rG'u12i in g 1100,00%we concur in the requested niue-Mo zh extension of time to assist you in securing the e project iizancirg and acquisition in an orderly fashion. This tine extension revises the time of performance stated in your con- tract from three nonths to twelve nnathsq Or from 516/67 to 2/6/68. We are pieused to .e able to provide this extension of: time for you, but do suggest that the City proceed as expeditiously as possible in its Zund collecting and acquisition actions. Sincerely yours, I I Sumner Weinstei:. Assistant Regional Administrator for EAtropolitan Development DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT • 450 GOLDEN GATE AVENUE. BOX 3M. SAN FRANCISCO, CALIFORNIA 94102 J � l REGION VI Metropolitan Development Office' Honorable Waldo F. Burroughs Mayor, City of Redlands City Hall Redlands, California 92373 Dear Mayor Burroughs: Subject: Project No. Calif. OSA-41 Contract No. Calif. OSA-41(G) We are pleased to enclose herewith one counterpart of the fully executed Contract for Grant to Acquire Open -Space Land identified above. Sincerely yours, t S9mu4enstein Assistant Regional Administrator for Metropolitan Development Enclosure HUD-3180a (3-66) UNITED STATES OF AMFRICA DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CONTRACT FOR GRANT TO ACQUIRE AND/OR DEVELOPME�NT FOR OPEN -SPACE PURPOSES UNDER TITLE VII OF THE ROUSING ACT OF 1961, AS AMENDED PART I Project No. Calif. OSA-41 Contract No. Calif. OSA-41(G) THIS AGREEMENT, consisting of this Part I and the Terms and Conditions (Form HUD-3180b, dated 3-66) forming Part II hereof (which Parts, together, are herein called the "Contract"), effective on the date herei.nbelow set out, by and between City of Redlands (herein called the "Public Body") and the United States of America (herein called the "Government"), WITNESSETH: In consideration of the mutual covenants, promises, and representations contained herein, the parties hereto do agree as follows: SEC. 1. PURPOSE OF CONTRACT The purpose of this Contract is to provide Federal financial assistance to the Public Body in the form of a grant of Federal funds (herein called the "Grant") under Title VII of the Housing Act of 1961, as amended, for the purpose of carrying out a certain open -space land project (herein called the "Project") and to state the terms and conditions under which such assistance will be ex- tended. SEC. 2. THE PROJECT (a) The Public Body agrees to undertake, carry out, and complete the acquisition of fee simple title in that certain land located in the City of Redlands, County of San Bernardino, State of California, and more generally described as follows: PROSPECT PARK 501 - 174 - 014 - 02 Redlands Heights No 6 Blk 26 and N 1/2 St vacated adj on S and Wly 1/2 Prospect St vacated -1- - 03 - 04 - 05 IW+I.i 501 - 174 - 023 - 04 adj lot l on E and Sly 1/2 Crescent Ave vacated adj lot 1 on N Belleview Tr All Lot 2 Ptn Lot 3 Beg at NE Cor Blk 24 Map No 6 Redlands Heights th alg N line Sd Blk 24 S 56 Deg 20 min W 42.3 feet to E Li of Private Road th S 47 Deg 10 min E 41.1 Ft th N 56 Deg 20 min. E 32.7 Ft to E Line Sd Blk 24 th N 33 deg 40 min W 40 Ft to Pob Redlands Heights No 6 Blk 38 Nly 1/2 Crescent Ave Vacated Adj on S and Wly 1/2 Mabel St Vacated Adj on E Redlands Heights No 6 Blk 39 and Nly 1/2 Crescent Ave Vacated Adj on S and Ely 1/2 Mabel St vacated Adj on W Redlands Heights No 6 N and W of Center Li New Prospect St Vacated Ptns Lots 4 and 5 and all Lot l Blk 27 and E 1/2 Prospect St vacated Adj Lot 1 on W and Ptn Lot 2 Lying N of C/L New Prospect St Redlands Heights No 6 Ptn Lot 2 Blk 27 Com at intersection N Li Hilton Ave with middle Li Cajon St th W 309.2 Ft th N 12 Deg 23 min W 121 Ft th N 58 Deg 55 min E 51.9 Ft th N 89 Deg 35 min F 279 Ft to middle Li Cajon St th Sly alg middle Li. Cajon St 130 ft to Beg and Com at SE Cor Lot 13 th N 33 Deg 40 min W 5.1 Ft th S 86 Deg 11 min W alg th S Li Lot 2 Sd Blk 31.1 Ft to SW Cor Lot 2 Th S 12 Deg 23 min E to S Li Lot 13 22 Ft Th N 56 Deg 20 min E 34.9 Ft A1g S Li Lot 13 to POB and Lots 3 14 15 16 17 and 18 Blk 27 -2- (b) The Public Body agrees to retain said land, as developed, for permanent open --space purposes, and the open -space use or uses of said land shall be for park and recreational purposes, conservation of land and other natural resources, or historic or scenic purposes. SEC. 3. THE GRANT In order to assist the Public Body in carrying out the Project, the Government agrees to make a Grant in an amount equal to 50 percent of the actual cost of the Project; or in the amount of $280,000, whichever is less. SEC. 4. RELOCATION GRANT (a) The Government further agrees to increase the Grant otherwise pay- able to the Public Body pursuant to the provisions of Section 3 hereof in an amount equal to the relocation payments which are made by the Public Body in connection with the Project, in accordance with regulations prescribed by the Secretary with respect thereto: Provided, That the amount of such increase shall in no event exceed the sum of $ None. (b) The Public Body agrees to make relocation payments to or on behalf of eligible families, individuals, business concerns, and nonprofit organiza- tions in accordance with and to the fullest extent permitted by the regula- tions prescribed by the Secretary and within the limitations of subsection (a) hereof. (c) No part of the amount of the relocation payments provided for here- under shall be included in computing the amount of the Grant otherwise payable to the Public Body pursuant to the provisions of Section 3 hereof. SEC. 5. TIME OF PERFORMANCE The Public Body agrees that it will complete the acquisition of the open - space within three months following the date of approval of the Application. SEC, 6. COUNTERPARTS OF THE CONTRACT This Contract may be executed in two counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. SEC. 7. CHANGES APPLICABLE TO PART II HEREOF The following changes are hereby made in the attached Terms and Conditions designated Part II hereof: (a) Wherever there appears in the Terms and Conditions, Part II, of this Contract any reference to or any provision directed toward demolition and/or development activities on open -space land acquired as part of the Project authorized hereunder, such provision or reference shall be deemed to be surplusage, it being understood and agreed by and between the parties hereto -3- that the purpose of this Contract is to provide for Federal grant to assist in the acquisition of land for open -space purposes. (b) Section 106(C) of Terms and Conditions, fart II of this Contract is changed by deleting the last comma from the first sentence thereof, and the words "as modified by an addendum (HUD-3200A)"o IN WITNESS WHEREOF, the Public Body has caused this Contract to be duly executed in its behalf and its seal to be hereunto affixed and attested; and, thereafter, the Government has caused the same to be duly executed in its behalf this � ,day of ,1x ,19-67 (SEAL) CITY OF REDLANDS ATTEST; nature) o (Type r r� t Name) City Clerk (Title) By (Signature) (Type or Print Name) Mayor (Title) UNITED STATES OF AMERICA Secretary of Housing and Urban Development By tA XKXRM XK9X"= Assistant Regional Administrator for Metropolitan Development Region VI HUD-3180b (1-67) CONTRACT FOR GRANT TO ACQUIRE AND/OR DEVELOP LAND FOR OPEN -SPACE PURPOSES UNDER TITLE VII OF THE HOUSING ACT OF 1961, AS AMENDED PART II TERMS AND CONDITIONS SEC. 101. USE OF CERTAIN TERMS Except where the context clearly indicates otherwise, the following terms, as used herein, shall have the meanings ascribed to them in this Section; (A) The capitalized term "Secretary" means the Secretary of Housing and Urban Development or the person authorized to act on his behalf. (B) The term "Contract" means this Contract between the Government and the Public Body, and includes Parts I and II and any additional document or documents incorporated herein by special, reference, as well as any amendment. (C) The term "Application" means the written application for the Grant by the Public Body, including any revisions thereto, together with all explanatory, supporting, or supplementary documents filed therewith. (D) The term "land" means the interest or interests in real property acquired or to be acquired and/or developed by the Public Body as set out in Section 2(a) of Part I of this Contract and shall include a fee interest or such lesser interests as therein contemplated. (E) The term "Project' means the undertaking and carrying out to completion of the acquisition and/or development of land for open -space uses as set forth in Section 2(b) of Part I of this Contract. SEC. 102. ACCOMPLISHMENT OF PROJECT The Public Body will commence and carry out the Project with all practicable dispatch, in a sound, economical, and efficient manner, in accordance with the Application and the provisions of this Contract, and will initiate and complete the Project within the time limit specified in Section 5 of Part I of this Contract. Such term may be extended with the written consent of the Secretary. The Public Body will carry out the Project in compliance with all requirements imposed by or pursuant to regulations of the Secretary effectuating Title VI of the Civil Rights Act of 1964 (78 Stat. 241, 252). SEC. 103. PROVISIONS RELATING TO ADMINISTRATION (A) Books and Records. The Public Body will keep full and accurate books and records with respect to all matters covered by this Contract, including books and records which permit a speedy and effective audit, and will fully disclose; (1) Adequate title evidence in the form, of title policies, Torrens certificates, or abstracts, and attorneys' opinions relating to the land or interests in land acquired by the Public Body under this Project; (2) The amount and disposition of both Federal and non -Federal funds which are provided for the Project; (3) All items of cost chargeable or which are proposed to be charged to the total cost of the Project; (4) All Project work and undertakings and all contracts which are entered into by the Public Body pertaining thereto; (5) The families, individuals, and business concerns which are displaced in the carrying out of the Project, the pertinent facts concerning their relocation, and the making of relocation payments therefor; and (6) All proceedings which are taken by the Public Body with respect to any of the preceding items in this Section. (B) Inspections and Audits. The Public Body will, at any time during normal business hours, and as often as the Secretary or the Comptroller General of the United States may deem necessary, permit the Secretary and the Comptroller General to have full and free access to all of its books and records with respect to the matters mentioned in subsection (A) of this Section, and will permit the Secretary and the Comptroller General to audit, examine, and make excerpts or transcripts from such books and records, and to review, inspect, and make audits of all Project work, contracts, invoices, materials, payrolls, records of personnel, conditions of employment, books of accounts, and other documentary data pertaining to such matters. (C) Reports and Information. The Public Body will, at such times as the Secretary may require, furnish him with periodic reports and statements, and other documentary data and information, as he may request, pertaining to the various matters covered by this Contract. SEC. lo4. LAND PROVISIONS (A) General Requirements Concerning Land. The Public Body shah.: (1) Take all necessary steps to remove or abrogate all legally enforceable provisions pertaining to the restriction of the use of the land it is acquiring and/or developing, upon the basis of race, creed, color, or national origin. 2 (2) Include in every agreement, lease, conveyance, or other instrument whereby the land is disposed of, an affirmative covenant binding on the contractor, lessee, grantee, or other party to such instrument and on the successors in interest to such contractor, lessee, grantee, or other party that there shall be no discrimination upon the basis of race, creed, color, or national origin in the use or occupancy of the land. The covenant shall recite that the United States is a beneficiary of the covenant and entitled to enforce it. (3) Not sell, lease, or otherwise dispose of the land except with the prior written approval of the Secretary. (4) Not voluntarily create, cause, or allow to be created any debt, lien, mortgage, charge, or encumbrance against any of the land which in any way will impair or otherwise adversely affect the preservation of said land for the use or uses set out in Section 2(b) of Part I of this Contract. (5) From time to time duly pay and discharge, or cause to be paid and discharged when the same become due, all taxes, assessments, and other governmental charges which are lawfully imposed upon any of the land and which if unpaid may by law become a lien or charge upon said land and thereby impair or otherwise adversely affect the holding of said land for the use or uses set out in Section 2(b) of Part I of this Contract. (6) Faithfully observe and conform to all valid requirements of any governmental authority relative to the land and all covenants, terms, and conditions applicable to said sand. (B) Fair Market Value. The Public Body shall take all appropriate steps to assure that the consideration it pays for the land does not exceed fair market value at the time of acquisition. If the Secretary determines that the consideration paid by the Public Body is in excess of fair market value, for purposes of computing the amount of the Grant, the acquisition cost shall be reduced by the amount of the excess. J (C) Special Provisions Relating to Sale or Tease of Land. If the Project proposes that the Public Body lease or sell all or part of the land, the Public Body must first obtain written approval of the Secretary before such leasing or sale is undertaken. Approval will be given only if such leasing or sale is consistent with the Project and adequate controls are embodied in the lease or deed to assure the preservation of the open -space use or uses of such land as set out in Section 2(b) of Part I of this Contract. (D) Use of Land (1) No change in the use of the land to a use other than the open -space uses set out in Section 2(b) of Part I of this Contract will be permitted without the prior written approval of the Secretary. Before such approval will be given, the Public Body must demonstrate to the Secretary's satisfaction that. - 3 - (a) The conversion is essential to the orderly development and growth of the urban area involved; (b) The conversion is in accord with the comprehensively planned development of the urban area; and (c) The open -space land is being or will be replaced, without cost to the Federal Government, by other open -space land of at least equal fair market value at the time of conversion, and of as nearly as feasible equivalent usefulness and location. (2) The Public Body shall not discriminate upon the basis of race, color, or national origin in the sale, lease, or rental or in the use or occupancy of the land or any improvements erected or to be erected thereon, or any part thereof. (3) The Public Body shall not restrict the use of the land, as developed, on the basis of place of residence, except that a reasonable fee charged nonresidents over and above any fee that may be charged residents shall not be interpreted as a restriction of the use of such land. (E) Transfer of Public Body►s Interests in Land to Another Public Body. Before the Public Body transfers its interests in the land to another Public Body, it shall require its transferee to enter into a contract with the Secretary agreeing in writing to be bound by all of the applicable terms and conditions of this. Contract. SEC. 105. PAYMENT OF GRANT (A) Advance or Progress Payments. Under or subject to such conditions as the Government may, in writing, specify which are not inconsistent with applicable law, the Government may, in its discretion, make advance or progress payments to the Public Body on account of the Grant, or on account of the increase with respect to the Grant provided for in Section 4 of Part I of this Contract, at such time or times prior to the completion of the Project and the final determination of the total cost thereof as, in view of the status of the Project and the matters relative thereto, the Government may deem appropriate, but no such advance or progress payment will be made unless and until the Public Body shall have filed its written request with the Secretary for such advance or progress payment; Provided, That the Public Body is not in default on any of the terms of this Contract. The Public Body shall deposit such advance payment funds in a bank or banks which are members of the Federal Deposit Insurance Corporation. (B) Requisition for Grant Payment. The Public Body shall file its requisition for payment of Grant, including the increase provided for in Section 4 of Part I of this Contract, on a form or forms prescribed by the Secretary. Such requisition shall be accompanied by the Public Body's certification of purposes, demonstrating the need, at the time, for the funds requisitioned; that the amount sought is reasonable; and that the purposes for which it proposes to expend the funds are within the purview of this Contract. 4_ (C) Acquisition, Development, and Demolition Costs. Payment of the Grant provided for in Section 3 of Part I of this Contract shall be based on acquisition, demolition, and development costs which have been determined by the Secretary as eligible Project costs, in the light of applicable Federal law and in accordance with the Secretary's rules and regulations implementing that law. The acquisition cost shall not include (1) ordinary State or local governmental expenses; (2) costs of acquiring land located outside the urban area for which the Public Body exercises (or participates in the exercise of) open -space responsibilities; (3) the cost of land acquired prior to the notification of the Public Body by the Secretary of his approval of the Application or of the acquisition of such land; or (4) the cost of land acquired with the assistance of funds received directly or indirectly from the Government, or any agency or instrumentality thereof, other than under the terms of this Contract. The development cost shall include only those costs which are necessary to prepare the land for open -space use and shall not include (1) the cost of development undertaken prior to the notification of the Public Body by the Secretary of his approval of the Application or of the development of the land or (2) the cost of specialized major recreation facilities. The demolition cost shall include only those costs which are necessary for the demolition and removal of buildings and structures from developed land acquired as part of the Project. SEC. 106. 1,ABOR AND CONSTRUCTION PROVISIONS (A) Contract and "lbrce Account" Work. The Public Body may elect to carry out any necessary demolition, construction, or development activities as a part of the Project by utilization of its own employees or it may have such work done under written contracts let by it. Any contracts entered into for Project work shall contain appropriate provisions to require compliance with all applicable Federal laws and regulations pertaining to such contracts, to the work to be performed thereunder, and to the persons employed in the carrying out of such contracts. (B) Competitive Bidding. The Public Body will give full opportunity for free, open, and competitive bidding for each contract to be let by it calling for construction, demolition, or other similar work, as a part of the Project, or for the furnishing of any materials, supplies, or equipment for or use on, the Project and will give such publicity to its advertisements or calls for bids for each such contract as will provide adequate competition; and the award of each such contract, when made, will be made by it as soon as practicable to the lowest responsible bidder: Provided, That in the selection of such materials, equipment, or supplies, the Public Body may, in the interest of standardization or ultimate economy, if the advantage of such standardization or such ultimate economy is clearly evident and an appropriate provision for such action is included by it in the proposed contract documents upon which bids are invited, award a contract to a responsible bidder other than the lowest in price: Provided further, That purchases of such materials, equipment, or supplies in amounts of $2,500 or less, and contracts in amounts of $2,500 or less calling for construction, demolition, or other similar work, as a part of the Project, may, except where contrary to the requirements of State or local law, be made from time to time by the Public Body without negotiation or competitive bidding and without observance of the other provisions of this subsection. - 5 - (C) Provisions To Be Included in Certain Contracts. Before the Public Body receives bids or proposals for, or otherwise negotiates for, a proposed contract which calls for the performance of any work on the Project which will entail, for such work, the employment by the contractor or his subcontractors of laborers or mechanics, the Public Body shall include in the proposed contract documents appropriate wage schedules (including applicable wage determinations of the Secretary of Labor, United States Department of Tabor) and other provisions which are consistent with the provisions. embodied in that document entitled "Federal Labor Standards Provisions" attached hereto marked HUD-3200 and made a part hereof. Such schedules, wage determinations, and other provisions, as included in such proposed contract documents, shall also be included in the contract documents as executed. The Public Body will include in each contract mentioned in the preceding sentence of this subsection an appropriate provision requiring the contractor to insert in each of his subcontracts which will entail the employment by such subcontractor of laborers or mechanics, as aforesaid, wage and other provisions which are consistent with such contractor's contract with the Public Body. (D) State or Local Taws Concerning Wage Rates for Laborers and Mechanics. If State or local laws require that laborers or mechanics who are employed by the Public Body's contractors, or by such contractorst subcontractors, in the development of the Project, be paid not less than the wages which are established pursuant to such laws and if such wages so established are higher than the wages which are determined by the Secretary of Labor, United States Department of Labor, pursuant to the aforesaid Davis -Bacon Act, to be the wages prevailing in the locality in which the Project is situated, nothing in this Contract is to be construed as intended to relieve the Public Body of its obligation, if any, to require payment of such higher wages. (E) Equal Employment Opportunity (1) Activities and Contracts Not Subject to Executive Order 11246. In the carrying out of the Project, the Public Body will not discriminate against any employee or applicant for employment because of race, creed, color, or national origin. The Public Body will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, or national origin. Such action shall include, but not be limited to, the following; employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Public Body agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Government setting forth the provisions of this nondiscrimination clause. The Public Body will, in all solicitations or advertisements for employees placed by or on behalf of the Public Body, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, or national origin. The Public Body will incorporate the foregoing requirements of this subparagraph (1) in all of its contracts for Project work, except contracts governed by subparagraph (2) of this Section 106(E) and contracts for standard commercial supplies or raw materials, and will require all of its contractors for such work to incorporate such requirements in all subcontracts for Project work. - 6 - (2) Contracts Subject to Executive Order 11246. The Public Body will incorporate or cause to be incorporated into any contract for construction or modification thereof which is subject to Executive Order 11246, and the rules and regulations of the Secretary of Labor pursuant thereto, the following provisions, altered only to reflect the proper identity of the parties: 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, creed, color, 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, creed, color, or national origin. Such action shall include, but not be limited to, the following; employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Public Body 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, creed, color, 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, advising the labor union or workers' representative of the contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, 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 of 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 the Secretary of Housing and Urban Development pursuant thereto, and will permit access to his boobs, records, and accounts by the Public Body, the Secretary of Housing and Urban Development, and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations,and orders. 7 .. ON (6) In the event of the contractor's noncompliance with the nondiscrimination 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 contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (7) The contractor will include 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 Public Body or the Secretary of Housing and Urban Development may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, That, in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Public Body, the contractor may request the United States to enter into such litigation°to protect the interests of the United States. (3) Definition -- Contract for Construction. As used in this Section 106(E), contract for construction means any contract or agreement for demolition, site clearance, site preparation, or development. (4) Enforcement Obligations of Public Body. The Public Body will assist and cooperate actively with the Secretary of Housing and Urban Development and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the provisions set forth in subparagraph (2) and with the rules, regulations, and relevant orders of the Secretary of Labor and will obtain and furnish to the Secretary of Housing and Urban Development and to the Secretary of Labor such information as they may require for the supervision of such compliance. The Public Body will enforce the obligations of contractors and subcontractors under such provisions, rules, regulations, and orders and will carry out sanctions and penalties for violation of such obligations imposed upon contractors and subcontractors by the Secretary of Labor or the Secretary of dousing and Urban Development. The Public Body will refrain from entering into any contract subject to Executive Order 11246 or extension or other modification of such a contract with a contractor who has been debarred from Government contracts and federally assisted construction contracts under Part II, Subpart D, of Executive Order 11246, or who has not demonstrated his eligibility for such contracts as provided in Part II of Executive Order 11246. In the event the Public Body fails and refuses to comply with its undertakings, the Public Body agrees that the Government (i) may cancel, terminate, or suspend this Contract in whole or in part, (ii) may refrain from extending any further assistance under the program with respect to which the failure or refusal occurred until satisfactory assurance of future compliance has been received from the Public Body, or (iii) may refer the case to the Department of Justice for appropriate legal proceedings. SEC. 107. DEFAULTS AND REMEDIES (A) Termination or Suspension of Contract. The Government may terminate or suspend this Contract at its discretion upon the happening of any of the following: (1) The failure of the Public Body to complete the Project within the time prescribed in Section 5 of Part I of this Contract; (2) The making of any misrepresentation by the Public Body in its Application or in the furnishing of any information to the Secretary; (3) The violation of any of the terms or conditions of this Contract; (4) Any event which makes the accomplishment of the Project by the Public Body impossible, improbable, infeasible, or illegal; or (5) The commencement of any litigation challenging the performance by the Public Body of any of its duties or obligations which may jeopardize or adversely affect the Project, this Contract, or the Grant. (B) Forfeiture of Grant (1) If the Public Body should change the use of the land from the use or uses designated in Section 2(b) of Part I of this Contract without the prior written approval of the Secretary, or should it transfer its interests in the land to another Public Body without requiring the transferee to execute the contract with the Secretary provided for by Section 104(E) of this Part II, the Public Body shall at the request of the Secretary repay to the Government the amount of the Grant. (2) For any other violation of any of the terms of this Contract, the Secretary may, in addition to such other remedies as may exist at law or in equity, require repayment of all or part of the Grant to the Government. (C) When Rights and Remedies Not Waived. In no event shall the making by the Government of any Grant payment to the Public Body constitute or be construed as a waiver by the Government of any breach of covenant or any default which may then exist on the part of the Public Body, and the making of any such payment by the Government while any such breach or default shall exist shall in no wise impair or prejudice any right or remedy available to the Government in respect of such breach or default. - 9 - SEC. 108. MISCELLANEOUS PROVISIONS (A) Interest of Public Body Personnel and Other Local Public Officials. The Public Body shall adopt and enforce measures to assure that no member of its governing body and no other officer or employee of the Public Body and no member of the governing body or other public official of any other local public body in the urban area in which the Project is situated, who exercises any functions or responsibilities in connection with the carrying out of the Project, shall, prior to the completion of the Project, voluntarily acquire any personal interest, direct or indirect, in any property included in the Project or in any contract or proposed contract in connection with the undertaking of the Project. If any such member, employee, or officer presently owns or controls, or in the future involuntarily acquires, any such personal interest, he shall immediately disclose such interest to the Public Body. Any member, employee, or officer who shall have or acquire such interest shall not participate in any action by the Public Body affecting the undertaking of the Project, unless the Public Body shall determine that, in the light of the personal interest disclosed, the participation of such individual in any such action would not be contrary to the public interest. The Public Body shall promptly advise the Secretary of the facts and circumstances concerning any disclosure made to it pursuant to this provision and the action taken by the Public Body upon being made aware of said facts and circumstances. (B) 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 Contract or to any benefit to arise from the same. (C) Bonus or Commission. The Public Body shall not pay any bonus or commission for the purpose of obtaining the Secretaryts approval of the Application or any other approval by the Secretary which may be necessary under this Contract. (D) Government Not Obligated to Third Parties. The Government shall not be obligated or liable under this Contract to any party other than the Public Body. (E) How Contract Affected by Provisions Being Held Invalid. If any provision of this Contract is held invalid, the remainder of this Contract shall not be affected thereby if it is in conformity with the terms and requirements of applicable law. (F) Provisions Concerning Certain Waivers. Subject to applicable Federal law, any right or remedy which the Government may have under this Contract may be waived in writing by the Government by a formal waiver and either with or without the execution of an amendatory or supplementary agreement, if, in the judgment of the Government, this Contract, as so modified, will still conform to the provisions and requirements of applicable laws. - 10 - HUD-32oo (4-66 ) 1. APPLICABILITY The Project or Program to which the work covered by this Contract pertains is being assisted by the United States of America and the following Federal Labor Standards Provisions are included in this Contract pursuant to the provisions applicable to such Federal assistance. 2. )UNIMMM WAQ RATES FOR LABORERS AND MECHANICS All laborers and mechanics employed upon the work, covered by this Contract shall be paid unconditionally and not less often than once each week, and without subsequent deduction or rebate on any account (except such payroll deductions as are made mandatory by law and such other payroll deductions as are permitted by the applicable regulations issued by the Secretary of Labor, United States Department of Labor, pursuant to the Anti -Kickback Act hereinafter identified), the full amounts due at time of payment computed at wage rates not less than those contained in the wage determination decision of said Secretary of Labor (a copy of which is attached and herein incorporated by reference), regardless of any contractual relationship which may be alleged to exist between the Contractor or any subcontractor and such laborers and mechanics. All laborers and mechanics employed upon such Work shall be paid in cash, except that payment may be by check if the employer provides or secures satisfactory facilities approved by the Local Public Agency or Public Body for the cashing of the same without cost or expense to the employee. For the purpose of this clause, contributions made or costs reasonably anticipated under Section 1(b)(2) of the Davis -Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of Section 5.5(a)(1)(iv) of Title 29, Code of Federal Regulations. Also for the purpose of this clause, regular contributions made or costs incurred for more than a weekly period under plans, funds, or programs, but covering the particular weekly period, are deemed to be constructively made or incurred during such weekly period. 3. UNDERPAYMENTS OF WAGES OR SALr4 IEb In case of underpayment of wages by the Contractor or by any subcontractor to laborers or mechanics employed by the Contractor or subcontractor upon the work covered by this Contract, the Local.Public Agency or Public Body in addition to such other rights as may be afforded it under this Contract shall withhold from the Contractor, out of any payments due the Contractor, so much thereof as the Local Public Agency or Public Body may consider necessary to pay such laborers or mechanics 1- the full amount of wages required by this Contract. The amount so withheld may be disbursed by the Focal Public Agency or Public Body, for and on account of the Contractor or the subcontractor (as may be appropriate), to the respective laborers or mechanics to whom the same is due or on their behalf to plans, funds, or programs for any type of fringe benefit prescribed in the applicable wage determination. 4. ANTICIPATED COSTS OF FRINGE BENEFITS If the Contractor does not make payments to a trustee or other third person, he may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing fringe benefits under a plan or program of a type expressly listed in the wage determination decision of the Secretary of Labor which is a part of this Contract: Provided, however, The Secretary of Labor has found, upon the written request of the Contractor, that the applicable standards of the Davis -Bacon Act have been met. The Secretary of Labor may require the Contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. A copy of any findings made by the Secretary of Labor in respect to fringe benefits being provided by the Contractor must be submitted to the Local Public Agency or Public Body with the first payroll filed by the Contractor subsequent to receipt of the findings. 5. OVERTIME COMPENSATION REQUIRED BY CONTRACT WORK SOURS STANDARDS ACT (76 Stat. 357-360; Title 4o U.S.C., Sections 327-332) (a) Overtime requirements. No Contractor or subcontractor contracting for any part of the Contract work which may require or involve the employment of laborers or mechanics, including watchmen and guards, shall require or permit any laborer or mechanic in any workweek in which he is employed on such work to work in excess of eight hours in any calendar day or in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half tithes his basic rate of pay for all hours worked in excess of eight hours in any calendar day or in excess of forty hours in such workweek, as the case may be. (b) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (a), the Contractor and any subcontractor responsible therefor shall be liable to any affected employee for hie unpaid wages. In addition, such Contractor and subcontractor shall be liable to the United States for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic employed in violation of the clause set forth in paragraph (a), in the sum of $10 for each calendar day on which such employee was required or permitted to work in excess of eight hours or in excess of the standard workweek of forty hours without payment of the overtime Wages required by the clause set forth in paragraph (a). - 2- (c) Withholding for lignidated damages. The Local Public Agency or Public Body shall withhold or cause to be withheld, from any moneys payable on account of work performed by the Contractor or subcontractor, such sums as may administratively be determined to be necessary to satisfy any liabilities of such Contractor or subcontractor for liquidated damages as provided in the clause set forth in paragraph (b). (d) Subcontracto. The Contractor shall insert in any subcontracts the clauses set forth in paragraphs (a), (b), and (a) of this Section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts which they may enter into, together with a clause requiring this insertion in any further subcontracts that may in turn be made. 6. E14PLOWNT OF APPRENTICES Apprentices will be permitted to perform work covered by this Contract only under a bona fide apprenticeship program registered with a State Apprenticeship Agency which is recognized by the Bureau of Apprenticeship and Training, united States Department of Labor, or, if no such recognized Agency exists in a State, under a program registered with the Bureau of Apprenticeship and Training. The allowable ratio of apprentices to journey- men in any craft classification shall not be greater than the ratio permitted to the Contractor as to his entire work force under the registered program. Any employee listed on a payroll at an apprentice wage rate, who is not registered as above, shall be paid the wage rate determined by the Secretary of Labor, United States Department of Labor, for the classification of work he actually performed. The Contractor or subcontractor shall furnish the Local Public Agency or Public Body with written evidence of the registration of his program and apprentices, as well as of the appropriate ratios and wage rates for the area of construction, prior to using any apprentices on the contract work. 7. EMPLOYMENT OF CERTAIN PERSONS PROHIBITED No person under the age of sixteen years and no person who, at the time, is serving sentence in a penal or correctional institution shall be employed on the work covered by this Contract. 8. REGULATIONS PURSUANT TO SO-CALLED "ANTI -KICKBACK ACT" The Contractor shall comply with the applicable regulations (a copy of which is attached and herein incorporated by reference:) of the Secretary of Labor, United States Department of Labor, made pursuant to the so-called "Anti -Kickback Act" of June 13► 1934 (48 Stat. 948; 62 Stat. 862; Title 18 U.S.C., Section 874; and Title 40 U.S.C., Section 276c)� and any amendments or modifications thereof, shall cause appropriate provisions to be inserted in subcontracts to insure compliance therewith by all subcontractors subject thereto, and shall be responsible for the submission of affidavits required by subcontractors thereunder, except as said Secretary of Labor may specifically provide for reasonable limitations, variations, tolerances, and exemptions from the requirements thereof. WIC 9. EMPLOYMCNT OF LABORERS OR MECHANICS NOT LISTED IN AFORESAID WAGE DETERMINATION DECISION Any class of laborers or mechanics Which is not listed in the wage determination and which is to be employed under the Contract will be classified or reclassified conformably to the wage determination by the Local. Public Agency or Public Body, and a report of the action taken shall be submitted by the Local Public Agency or Public Body, through the Secretary of Housing and Urban Development, to the Secretary of Labor, United States Department of Labor. In the event the interested parties cannot agree on the proper classification or reclassification of a particular class of laborers and mechanics to be used, the question accompanied by the recommendation of the Local Public Agency or Public Body shall be referred, through the Secretary of Housing and Urban Development, to the Secretary of Labor for final determination. The Local Public Agency or Public Body shall require, whenever the minlim m wage rate prescribed in the Contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly wage rate and the Contractor is obligated to pay a cash equivalent of such a fringe benefit, an hourly cash equivalent thereof to be established. In the event the interested parties cannot agree upon a cash equivalent of the fringe benefit, the question, accompanied by the recommendation of the Local Public Agency or Public Body, shall be referred, through the Secretary of Housing and Urban Development, to the Secretary of Labor for determination. 11. POSTING WAGE D=RMMTI0N DECISIONS AND AUTHORIZED WAGE DEDUCTIONS The applicable wage poster of the Secretary of Labor, United States Department of Labor, and the applicable gage determination decisions of said Secretary of Labor with respect to the various'classifications of laborers and mechanics employed and to be employed upon the work covered by this Contract, and a statement showing all deductions, if any, in accordance with the provisions of this Contract, to be made from wages actually earned by persons so employed or to be eMployed in such classifications, shall be posted at appropriate conspicuous points at the site of the work. 12. COMnAINM., PROCMMINGS, OR TESTIlMIONY BY EMnDYM No laborer or mechanic to whom the gage, salary, or other Labor standards provisions of this Contract are applicable shall be discharged or in any other manner discriminated against by the Contractor or any subcontractor because such employee has filed any complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. 13. CLAIMS AND DISPUTES PERTAIUM TO WAGE RATES Claims and disputes pertaining to wage rates or to classifications of laborers and mechanics employed upon the work covered by this Contract shall be promptly reported by the Contractor in writing to the Local Public Agency or Public Body for referral, by the latter through the Secretary of Sousing and Urban Development to the Secretary of Labor, United States Department of Labor, Whose decision shall be final with respect thereto. 14. QUESTIONS CONC miw CERTAIN FEDERAL STATUTES AND RzGULATTONS All questions arising under this Contract which relate to the application or interpretation of (a) the aforesaid Anti -Kickback Act, (b) the Contract Work Flours Standards Act, (a) the aforesaid Davis -Bacon Act, (d) the regulations issued by the Secretary of Labor, United States Department of Labor, pursuant to said Acts, or (e) the labor standards provisions of any other pertinent Federal statute, shall be referred, through the Local Public Agency or Public Body and the Secretary of Housing and Urban Development, to the Secretary of Tabor, United States Department of Labor, for said Secretary's appropriate ruling or interpretation which shall be authoritative and may be relied upon for the purposes of this Contract. 15. PAYROLLS AND BASIC PAYROLL RECORDS OF COMACTOR AND SUBCONTRACTORS The Contractor and each subcontractor shall prepare his payrolls ou forms satisfactory to and in accordance with instructions to be furnished by the Local Public Agency or Public Body. The Contractor shall submit weekly to the Local Public Agency or Public Body two certified copies of all payrolls of the Contractor and of the subcontractors, it being understood that the Contractor shall be responsible for the submission of copies of payrolls of all subcontractors. Each such payroll shall contain the "Weekly Statement of Compliance" set forth in Section 3.3 of Title 29, Code of Federal Regulations. The payrolls and basic payroll records of the Contractor and each subcontractor covering all laborers and•meebanics employed upon the work covered by this Contract shall be maintained during the course of the work and preserved for a period of three years thereafter. Such payrolls and basic payroll records shall contain the name and address of each such employee, his correct classification, rate of pay (including rates of contributions or costs anticipated of the types described in Section 1(b)(2) of the Davis -Bacon Act), daily and weekly number of hours worked, deductions made, and actual wages paid. In addition, whenever the Secretary of Labor has found under Section 5.5(a)(1)(iv) of Title 29, Code of Federal Regulations, that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in Section l(b)(2)(B) of the Davis -Bacon Act, the Contractor or subcontractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible.. and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. - 5 - The Contractor and each subcontractor shall make his employment records with respect to persons employed by him upon the work covered by this Contract available for inspection by authorized representatives of the Secretary of Housing and Urban Development, the Local Public Agency or Public Body, and the United States Department of Labor. Such representatives shall be permitted to interview employees of the Contractor or of any subcontractor during working hours on the job. 16. SPEcIFIC COVERAGE OF CERTAIN TYPES OF wCRK BY EMPIAym The transporting of materials and supplies to or from the site of the Project or Program to which this Contract pertains by the employees of the Contractor or of any subcontractor, and the manufacturing or furnishing of materials, articles, supplies, or equipment on the site of the Project or Program to which this Contract pertains by persons employed by the Contractor or by any subcontractor, shall., for the purposes of this Contract, and without limiting the generality of the foregoing provisions of this Contract, be deemed to be work to which these Federal Labor Standards Provisions are applicable. 17. INELIGIBLE SUBCONTRACTORS The Contractor shall not subcontract any part of the work covered by this Contract or permit subcontracted work to be further subcontracted without the Local Public Agency's or Public Body's prior written approval of the subcontractor. The Local Public Agency or Public Body will not approve any subcontractor for work covered by this Contract who is at the time ineligible under the provisions of any applicable regulations issued by the Secretary of Labor, United States Department of Labor, to receive an award of such subcontract. 18. PROVISIONS TO BE INCLUDED IN CERTAIN SUBCONTRACTS The Contractor shall include or cause to be included in each subcontract covering any of the work covered by this Contract, provisions which are consistent with these Federal Labor Standards Provisions and also a clause requiring the subcontractors to include such provisions in any lower tier subcontracts which they may enter into, together with a clause requiring such insertion in any further subcontracts that may in turn be made. 19. BREACH OF FOREGOING FEDERAL LABOR STANDARDS PROVISIONS In addition to the causes for termination of this Contract as herein elsewhere set forth, the Local Public Agency or Public Body reserves the right to terminate this Contract if the Contractor or any subcontractor whose subcontract covers any of the work covered by this Contract shall breach any of these Federal Labor Standards Provisions. A breach of these Federal Labor Standards Provisions may also be grounds for debarment as provided by the applicable regulations issued by the Secretary of Labor, United State: Department of Labor. -6-- ATTACHMENT TO FEDERAL LABOR STANDARDS PROVISIONS SO-CALLED "ANTI -KICKBACK ACT" AND REGULATIONS PROMULGATED PURSUANT 'THERETO BY THE SECRETARY OF LABOR, UNITED STATES DEPARTMENT OF LABOR TITLE 18, U.S.C., section 874 (Replaces section 1 of the Act of June 13, 1934 (48 Stat. 948. 40 U.S.C., see. 276b) pursuant to the Act of June 25, 1948, 62 Stat. 862) KICKBACK$ FROM PUBLIC WORKS EMPLOYEES Whoever, by force, intimidation, or threat of procuring dismissal from employment, or by any other manner whatsoever induces any person employed in the construction. prosecution, completion or repair of any public building, public work, or building or work financed in whole or in part by loans or grants from the United States, to give up any part of the compensation to which he is entitled under his contract of employment, shall be fined not more than $5.000 or imprisoned not more than five years, or both. SECTION 2 OF THE ACT OF JUNE 13, 1934, AS AMENDED (48 Stat. 948, 62 Stat. 862, 63 Stat. 108, 72 Stat. 967, 40 U.S.C., sec. 276c) The Secretary of Labor shall mane reasonable regulations for contractors and subcontractors en- gaged in the construction, prosecution, completion or repair of public buildings, public works or buildings or works financed in whole or in part by loans or grants from the United States, including a provision that each contractor and subcontractor shall furnish weekly a statement with respect to the wages paid each employee during the preceding week. Section 1001 of Title 18 (United States Code) shall apply to such statements. Pursuant to the aforesaid Anti -Kickback Act, the Secretary of Labor, United States Department of Labor, has ptomulgated the regulations hereinafter set forth, which regulations are found in Title 29, Subtitle A. Cade of Federal Regulations, Part 3. The term, "this part," as used in the regulations hereinafter set forth, refers to Part 3 last above mentioned. Said regulations are as follows: CONTRACTORS AND SUBCONTRACTORS ON PUBLIC BUILDING AND PUBLIC WORK AND ON BUILDING AND WORK FINANCED IN WHOLE OR IN PART BY LOANS OR GRANTS FROM THE UNITED STATES Sec. 3.1 Purpose and scope. This part prescribes "anti -kickback" regulations under section 2 of the Act of .Tune 13, 1934, as amended (40 U.S.C. 276c), popularly known as the Copeland Act. This part applies to any contract which is subject to Federal wage standards and which is for the construction, prosecution, completion, or repair of public buildings, public works or buildings or works financed in whole or in part by loans or grants from the United States. The part is intended to aid in the enforcement of the mini- mum wage provisions of the Davis -Bacon Act and the various statutes dealing with Federally -assisted construction that contain similar minimum wage provisions, including those provisions which are not subject to Reorganization Plan No. 14 (e.g., the College Housing Act of 1950, the Federal Water Pol- lution Control Act, and the Housing Act of 1959), and in the enforcement of the overtime provisions —1•- of the Contract Work Hours Standards Act whenever they are applicable to construction work. The part' details the obligation of contractors and subcontractors relative to the weekly submission of state- ments regarding the wages paid on work covered thereby; sets forth the circumstances and procedures governing the making of payroll deductions from the wages of those employed on such work; and de- lineates the methods of payment permissible on such work. Sec. 8.2_ Definitions. As used in the regulations in this part. (a) The terms "building" or "work" generally include construction activity as distinguished from manufacturing, furnishing of materials, or servicing and maintenance work. The terms include, without limitation, buildings, structures, and improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways. tunnels, sewers, mains, powerl.ines, pumping stations, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, and canals; dredging. shoring, scaffolding, drilling, blasting, excavating, clearing, and landscaping. sinless conducted in connection with and at the site of such a building or work as is described in the foregoing sentence, the manufacture or furnishing of materials, articles, supplies, or equipment (whether or not a Federal or State agency acquires title to such materials, articles, supplies, or equipment during the course of the manufacture or furnishing, or owns the materials from which they are manufactured or furnished) is not a "building" or "work" within the meaning of the regulations in this part. (b) The terms "construction," "prosecution," "completion," or "repair" mean all types of work done on a particular building or work at the site thereof, including, without limitation, altering, remodeling. painting and decorating, the transporting of materials and supplies to or from the building or work by the employees of the construction contractor or construction subcontractor, and the manufacturing or furnishing of materials, articles, supplies, or equipment on the site of the building or work, by persons employed at the site by the contractor or subcontractor. (c) The terms "public building" or "public work" include building or work for whose construc- tion, prosecution, completion, or repair, as defined above, a Federal agency is a contracting party, regardless of whether title thereof is in a Federal agency. (d) The term "building or work financed in whole or in part by loans or grants from the United States" includes building or work for whose construction, prosecution, completion, or repair, as de- fined above, payment or part payment is made directly or indirectly from funds provided by loans or grants by a Federal agency. The term does not include building or work for which Federal assistance is limited solely to land guarantees or insurance. (e) Every person paid by a contractor or subcontractor in any manner for his labor in the con- struction, prosecution, completion, or repair of a public building or public work or building or work financed in whole or in part by loans or grants from the United States is "employed" and receiving "wages," regardless of any contractual relationship alleged to exist between him and the real employer. (f) The term "any affiliated person" includes a spouse, child, parent,, or other close relative of the contractor or subcontractor; a partner or officer of the contractor or subcontractor; a cor- poration closely connected with the contractor or subcontractor as parent, subsidiary, or otherwise, and an officer or agent of such corporation. (g) The term "Federal agency" means the United States, the District of Columbia, and all execu- tive departments. independent establishments, administrative agencies, and instrumentalities of the United States and of the District of Columbia, including corporations, all or substantially all of the stock of which is beneficially owned by the United States, by the District of Columbia, or any of the foregoing departments, establishments, agencies, and instrumentalities. - 2 - Sec. 3.3 Weekly statement with respect to payment of gages. (a) As used in this section, the term "employee" shall not apply to persons in classifications higher than that of laborer or mechanic and those who are the immediate supervisors of such employees. (b) Each contractor or subcontractor engaged in the construction, prosecution, completion, or repair of any public building or public +pork, or building or work financed in whole or in part by loans or grants from the United•States, shall furnish each week a statement with respect to the wages paid each of its employees engaged on work covered by these regulations during the preceding weekly payroll period. The statement shall be executed by the contractor or subcontractor or by an author- ized officer or employee of the contractor or subcontractor who supervises the payment of wages, and shall be in the following fora: WEEKLY STATEWENT OF ODMPLIAICE 19 I. , (Howe of signatory party) (Title) do hereby state: (1) That I pay or supervise the payment of the persons employed by on the ; that (Contractor or subcontractor) (Building or wont) during the payroll period commencing on the day of 19_........, and ending on the day of , 19 , all persons employed on said project have been paid the full weekly wages earned, that no rebates have been or will be made either directly or indirectly to or on behalf of said from the full weekly (Contractor or subcontractor) wages earned by any person and that no deductions have been made either di- rectly or indirectly from the full wages earned by any person, other than permissible deductions as defined in Regulations. Part 3 (29 CFR Part 3), issued by the Secretary of Labor under the Copeland Act, as amended (48 Stat. 948, 63 Stat. 108. 72 Stat. 967; 76 Stat. 537; 40 U.S.G. 276c), and described below: (Paragraph describing deductions if any) (2) That any payrolls otherwise under this contract required to be sub- mitted for the above period are correct and complete; that the wage rates for laborers or mechanics contained therein are not less than the applicable wage rates contained in any wage determination incdrporated into the contract; that the classifications set forth therein for each laborer or mechanic con- form with the work he performed. (3) That any apprentices employed in the above period are duly registered in a bona fide apprenticeship program registered with a State apprenticeship agency recognized by the [Bureau of Apprenticeship and Training,] United States Department of Labor, or if no such recognized agency exists in a State, are registered with the Bureau of Apprenticeship and Training, United States Department of Labor. (Signature and title) _3- Section 1001 of Title 18 of the United States Code (Criminal Code and Criminal Procedure) shall apply to such statement as provided at 72 Stat. 967 (18 U.S.C. 1001, among other things, provides that who- ever knowingly and willfully makes or uses a document or fraudulent statement of entry, in any matter within the jurisdiction of any department or agency of the United States, shall be fined not more than $10,000 or imprisoned not more than five years, or both). (c) The requirements of this section shall not apply to any contract of $2,000 or less. (d) Upon a written finding by the head of a Federal agency, the Secretary of Labor may provide reasonable limitations, variations, tolerances, and exemptions from the requirements of this section subject to such conditions as the Secretary of Labor may specify. Sec. 3.4 Submission of weekly statements and the preservation and inspection of weekly payroll records. (a) Each weekly statement required under Sec. 3.3 shall be delivered by the contractor or sub- contractor, within seven days after the regular payment date of the payroll period. to a representa- tive of a Federal or State agency in charge at the site of the building or work, or, if there is no representative of a Federal or State agency at the site of the building or work., the statement shall be mailed by the contractor or subcontractor, within such time, to a Federal or State agency con- tracting for or financing the building or work. After such examination and check as may be made, such statement, or a copy thereof, shall be kept available, or shall be transmitted together with a report of any violation, in accordance with applicable procedures prescribed by the United States Department of Labor. (b) Each contractor or subcontractor shall preserve his weekly payroll records for a period of three years from date of completion of the contract. The payroll records shall set out accurately and completely the name and address of each laborer and mechanic, his correct classification, rate of pay, daily and weekly number of hours worked, deductions made, and actual wages paid. Such pay- roll records shall be made available at all times for inspection by the contracting officer or his authorized representative, and by authorized representatives of the Department of Labor. Sec. 3.5 Payroll deductions permissible without application to or approval of the Secretary of Labor. Deductions made under the circumstances or in the situations described in the paragraphs of this section may be made without application to and approval of the Secretary of Labor: (a) Any deduction made in compliance with the requirements of Federal, State, or local law, such as Federal or State withholding income taxes and Federal social security taxes. (b) Any deduction of sums previously paid to the employee as a bona fide prepayment of wages when such prepayment is made without discount or interest. A "bona fide prepayment of wages" is considered to have been made only when cash or its equivalent has been advanced to the person em- ployed in such manner as to give him complete freedom of disposition of the advanced funds. (c) Any deduction of amounts required by court process to be paid to another, unless, the de- duction is in favor of the contractor, subcontractor, or any affiliated person, or when collusion or collaboration exists. (d) Any deduction constituting a contribution on behalf of the person employed to funds estab- lished by the employer or representatives of employees, or both, for the purpose of providing either from principal or income, or both, medical or hospital care, pensions or annuities or retirement, death benefits, compensation for injuries, illness, accidents, sickness, or disability, or for insur- ance to provide any of the foregoing, or unemployment benefits, vacation pay, savings accounts, or - 4 - similar payments for the benefit of employees, their families and dependents: Provided, however, 'That the following standards are met: (1) The deduction is not otherwise prohibited by law; (2) it is either: (i) Voluntarily consented to by the employee in writing and in advance of the period in which the work is to be done and such consent is not a condition either for the obtaining of or for the continuation of employment, or (ii) provided for in a bona fide collective bargaining agreement between the contractor or subcontractor and representatives of its employees; (3) no profit or other benefit is otherwise obtained, directly or indirectly, by the contractor or subcontractor or any affiliated person in the form of commission, dividend, or otherwise; and (4) the deductions shall serve the convenience and interest of the employee. (e) Any deduction contributing toward the purchase of United States Defense Stamps and Bonds when voluntarily authorized by the employee. (f) Any deduction requested by the employee to enable him to repay loans to or to purchase shares in credit unions organized and operated in accordance with Federal and State credit union statutes. (g) Any deduction voluntarily authorized by the employee for the making of contributions to governmental or quasi -governmental agencies, such as the American lied Cross. (h) Any deduction voluntarily authorized by the employee for the making of contributions to Community Chests, United Givers Funds, and similar charitable organizations. (i) Any deductions to pay regular union initiation fees and membership dues, not including fines or special assessments: Provided, however, That a collective bargaining agreement between the contractor or subcontractor and representatives of its employees provides for such deductions and the deductions are not otherwise prohibited by law. (j) Any deduction not more than for the "reasonable cost" of board, lodging, or other facilities meeting the requirements of section 3(m) of the Fair Labor Standards Act of 1938, as amended, and Part 531 of this title. When such a deduction is made the additional records required under Sec. 516.25(a) of this title shall be kept. Sec. 3.6 Payroll deductions permissible with the approval of the Secretary of Labor. Any contractor or subcontractor may apply to the Secretary of Labor for permission to make any deduction not permitted under Sec. 3.5. The Secretary may grant permission whenever he finds that: (a) The contractor, subcontractor, or any affiliated person does not make a profit or benefit directly or indirectly from the deduction either in the form of a commission, dividend, or otherwise; (b) The deduction is not otherwise prohibited by law; (c) The deduction is either (1) voluntarily consented to by the employee in writing and in ad- vance of the period in which the work is to be done and such consent is not a condition either for the obtaining of employment or its continuance, or (2) provided for in a bona fide collective bar- gaining agreement between the contractor or subcontractor and representatives of its employees; and (d) The deduction serves the convenience and interest of the employee. Sec. 3.7 Applications for the approval of the Secretary of Labor. Any application for the making of payroll deductions under Sec. 3.6 shall comply with the re- quirements prescribed in the following paragraphs of this section: min (a) The application shall be in writing and shall be addressed to the Secretary of Labor. (b) The application shall identify the contract or contracts under which the work in question is to be performed. Permission will be given for deductions only on specific, identified contracts, except upon a showing of exceptional circumstances. (c) The application shall state affirmatively that there is compliance with the standards set forth in the provisions of Sec. 3.6. The affirmation shall be accompanied by a full statement of the facts indicating such compliance. (d) The application shall include a description of the proposed deduction, the purpose to be served thereby, and the classes of laborers or mechanics from whose wages the proposed deduction would be made. (e) The application shall state the name and business of any third person to whom any funds ob- tained from the proposed deductions are to be transmitted and the affiliation of such person, if any, with the applicant. Sec. 3.8 Action by the Secretary of Labor upon applications. The Secretary of Labor shall decide whether or not the requested deduction is permissible under provisions of Sec. 3.6; and shall notify the applicant in writing of his decision. Sec. 3.9 Prohibited payroll deductions. Deductions not elsewhere provided for by this part and which are not found to be permissible under Sec. 3.6 are prohibited. Sec. 3. 10 Methods of payment of wages. The payment of wages shall be by cash, negotiable instruments payable on demand, or the addi- tional forms of compensation for which deductions are permissible under this part. No other methods of payment shall be recognized on work subject to the Copeland Act. Sec, 3.11 Regulations part of contract. All contracts made with respect to the construction, prosecution, completion, or repair of any public building or public work or building or work financed in whole or in part by loans or grants from the United States covered by the regulations in this part shall expressly bind the contractor or subcontractor to comply with such of the regulations in this part as may be applicable. In this regard, see Sec. 5.5(a) of this subtitle. W. Willard Wirtz, Secretary of Labor. n US GOY ERNMEN7 PRINTING OFFICE 1966 0-217-061 - 6 -