Township Council Meeting — Packet

INTRODUCTION ESSEX COUNTY DIVISION OF HOUSING AND COMMUNITY DEVELOPMENT The Essex County Economic Development Center 20 Crestmont Road, Verona, New Jersey 07044 Tel (973) 655-0200 This information packet has been prepared for the purpose of explaining the Federal Labor Standards Provisions as required by the Housing and Urban-Rural Recovery Act of 1983. In the following pages, the responsibilities and obligations of HUD, Title | recipients and contractors working on CDBG funded projects are detailed. Included are explanations of the statutory provisions and sanctions, general terms and conditions, Labor Standards Provisions that should become part of the contract documents, and the Contractor Certification of Eligibility for all contractors. In addition, actual forms, which must be utilized, will be made available. Although the regulations and procedures may initially appear to be complicated, the intent of this implementation process stresses prevention and, if carefully followed, should be effective in preventing labor standard violations and minimizing the impact of those which do occur. Any questions occurring during project implementation should be addressed to the Program Monitor assigned to the project.

SANCTIONS The following sanctions are operable: A. Where the recipient's performance with respect to labor standards, administration, and enforcement is found not to be in conformance with the requirements of the Housing and Community Development Act of 1974 and the applicable implementing regulations of HUD, the provisions of Section 570:913 of the Regulations (Other remedies for noncompliance) are effective. Payments may be terminated, reduced, or otherwise limited. Violations of the Copeland Act by contractors could be the basis for termination of contract and could result in criminal prosecution by the Federal Government pursuant to 18 U.S.C. 874. Fraudulent execution of the requisite statements of compliance could result in prosecution under the False Information Act 18 U.S.C. 1001, 18 U.S.C. 1020, or 31 U.S.C. 231. The making of false statements is a felony. Violations of the Contract Work Hours and Safety Standards Act make the contractor and any subcontractor responsible and liable for unpaid wages and for liquidated damages to the United States in the Sum of $10.00 per man per day for each violation. Intentional violations are a Federal misdemeanor, punishable for each and every offense by a fine of not more than $1,000 or by imprisonment for not more than 6 months, or both. Violations may also be grounds for termination of contract. Violations of the Davis-Bacon Act may result in suspension of the project payment, advance or guarantee of funds until such time as the violations are discontinued or until sufficient funds are withheld to compensate employees for the wages to which they are entitled. Violations may also result in contract termination, suspension, or debarment of the contractor or subcontractor. Debarment recommendations pursuant to 29 CFR Part 5.6 shall be made by the appropriate HUD area office director accompanied by substantiating material and forwarded to the Regional Administrator, Attention Labor Relations Officer for Review. In turn, subject recommendation with comment shall be referred to the Assistant to the Secretary for Labor Relations for review and submission to the Department of Labor for appropriate action.

REHABILITATION ACT OF 1973 PUBLIC LAW 93-112 NONDISCRIMINATION UNDER FEDERAL GRANTS Sec. 504. No otherwise qualified handicapped individual in the United States, as defined in Section 7 (6), shall, solely by reason of his/her handicap, be excluded from the participation in, be denied the benefits of, or be subject to discrimination under any program or activity receiving Federal Financial Assistance. Approved September 26, 1973. See #5 of General Terms and Conditions - Architectural Barrier Act.

DEPARTMENT OF ECONOMIC DEVELOPMENT, TRAINING AND EMPLOYMENT DIVISION OF HOUSING & COMMUNITY DEVELOPMENT 20 Crestrmont Road Verona, New Jersey 07044 Tel. (973) 655-0200 Joseph N. DiVincenzo, Jr. Anibal Ramos, Jr. Essex County Executive Department Director CONTRACTOR CERTIFICATION OF ELIGIBILITY LF of (Name of Contractor) (Name of Firm) by entering into this contract certify that neither I, nor my firm, nor any person or firm who has an interest in my firm, is a person or firm ineligible to be awarded government contracts by virtue of section 3 (a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). No part of this contract shall be contracted to any person or firm ineligible for award of a government contract by virtue of section 3(a) of the Davis Bacon Act or 29 CFR 5.12 (a)(1). The penalty for making false statement is prescribed in the US Criminal Code, 18USC 1001. DATE: PROJECT AND YEAR: TOWN: SIGNATURE:

DEPARTMENT OF ECONOMIC DEVELOPMENT, TRAINING AND EMPLOYMENT DIVISION OF HOUSING & COMMUNITY DEVELOPMENT 20 Crestmont Road Verona, New Jersey 07044 Tel. (973) 655-0200 Joseph N. DiVincenzo, Jr. Anibal Ramos, Jr Essex County Executive Department Director John M. Soares Division Director SUB CONTRACTOR CERTIFICATION OF ELIGIBILITY , of (Name of Sub Contractor) (Name of Firm) by entering into this contract certify that neither |, nor my firm, nor any person or firm who has an interest in my firm, is a person or firm ineligible to be awarded government contracts by virtue of section 3 (a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). The penalty for making a false statement is prescribed in the US Criminal Code, 18USC 1001. PROJECT NAME: CONTRACT AMOUNT $ NATURE OF WORK TO BE PERFORMED: WORKMEN WILL REPORT FOR WORK ON OR ABOUT GENERAL CONTRATORS NAME: SIGNATURE: DATE:

CONTRACT FOR COMMUNITY DEVELOPMENT PROJECTS SUMMARY Listed below are the terms, conditions, and provisions, which must be followed for projects, funded in whole or in part with Community Development Funds. A more complete explanation of each requirement is to be found on the following pages. GENERAL TERMS AND CONDITIONS 1. Lead Base Paint Prohibition . Compliance with Air and Water Acts . Interest of Members of Congress . Interest of Members, Officers or Employees (present & former) . Architectural Barriers Act . Provisions for Training, Employment & Business Opportunities . Termination Contract for Cause Termination for Convenience of Municipality/Borrowing Entity . Changes 10. Assignability 11. Reports and Information 12. Records and Audits 13. Copyright 14. Patent Rights 15. Compliance with Local Laws 16. Indemnification 17. Equal Employment Opportunity 18. Performance Bonds 19. Payment Bond 20. Bid Guarantee 21. Maintenance Bond WHONAURWN

CONTRACT FOR COMMUNITY DEVELOPMENT PROJECTS General Terms and Conditions LEAD BASE PAINT PROHIBITION: The use of lead base paint on applicable surfaces of any residential structure undergoing construction or reconstruction through funds provided in whole or in part under Title | of the Housing and Community Development Act of 1974 is prohibited. The contractor shall conform to the provisions of 24 CFR 35 and the "Lead Base Paint Poisoning Prevention Act" 42 USC 4841 (3). COMPLIANCE WITH AIR AND WATER ACT: Contractors and sub grants of amounts in excess of $100,000 shall contain a provision which requires the recipient to agree to comply with all applicable standards, orders, or regulations issued pursuant to the Clean Air Act of 1970 (42 USC 1857 et seq.) and the Federal Water Pollution Control Act 33 USC 1251 et seq. as amended. Violations shall be reported to the grantor agency and the Regional Office of the Environmental Protection Agency. INTEREST OF MEMBERS OF CONGRESS: No member of or delegate to the Congress of the United States of America or Resident Commissioner shall be admitted to any share or part of this contract or to any benefit to arise therefrom, but this provision shall not be construed to extend this contract if made with a corporation for its general benefit. INTEREST OF MEMBERS, OFFICERS, OR EMPLOYEES AND FORMER MEMBERS, OFFICERS, OR EMPLOYEES: No member, officer, or employee of the County, Municipality, or the governing body of the locality in which the project is situated and no other public official of such locality or localities who exercises any functions or responsibilities with respect to the project shall, during his tenure, or for one year thereafter, have any interest, direct or indirect, in this contract or the proceeds thereof. ARCHITECTURAL BARRIERS ACT: The design of any facility (building, outdoor recreation or restroom facility) must comply with the "American Standard Specifications for Making Building and Facilities Accessible and Usable by the Physically Handicapped". (See 41 CFR 101 -19.603).

PROVISIONS FOR TRAINING, EMPLOYMENT, AND BUSINESS OPPORTUNITIES: 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 USC 170LU. Section 3 requires that to the greatest extent feasible opportunities for training and employment in given lower income residents of the project areas 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. Parties to this contract will comply with 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, and 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 send to each labor organization or representative of workers with which he has a collective bargaining agreement or other contract or understanding, if any, a notice advising the said organization or workers’ representative of his commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. D. 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. E. Compliance with the provisions of Section 3,

ubcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. E. 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 subcontractors, 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 in 24 CFR 135. TERMINATION OF CONTRACT FOR CAUSE: If through any cause, the contractor shall fail to fulfill in a timely and proper manner his obligations under this contract, or if the contractor shall violate any of the covenants, agreements, or stipulations of this contract, the Municipality shall thereupon have the right to terminate this contract by giving written notice to the contractor of such termination and specifying the effective date thereof, at least five (5) days before the effective date of such termination. On such event, all finished or unfinished documents, date, studies, surveys, drawings, maps, models, photographs, and reports prepared by the contractor under this contract shall, at the option of the Municipality, become its property and the contractor shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder. Notwithstanding the above, the contractor shall not be relieved of liability to the Municipality for damages sustained by the Municipality by virtue of any breach of the contract by the contractor, and the Municipality may withhold any payments to the contractor for the purpose of set-off until such time as the exact amount of damages due the Municipality from the contractor is determined. TERMINATION FOR CONVENIENCE OF MUNICIPALITY: The Municipality may terminate this contract at any time by giving at least ten (10) days notice in writing from the Municipality to the contractor. If the contract is terminated by the Municipality, as provided herein, the contractor will be paid an amount which bears the same ratio to the total compensation as the services actually performed bear to the total services of the contractor covered by this contract, less payments of compensation previously made: Provided, however, that if less than sixty percent (60%) of the services covered by this contract have been performed upon the effective date of such termination, the contractor shall be reimbursed (in addition to the above payment) for the portion of the actual out-of pocket expenses (not