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<br />Exhibit B <br /> <br />to pay salaries and other related administrative or personnel costs, no persons who exercise or have <br />exercised any function with respect to CDBG activities assisted under the terms of this Agreement, <br />or who are in a position to participate in a decision-making process or gain inside information with <br />regard to such activities, may obtain a financial interest or benefit from a CDBG-assisted activity of <br />SUBRECIPIENT, either for themselves or those with whom they have family or business ties, <br />during their tenure or for one year thereafter. This prohibition applies to any person who is an <br />employee, agent, consultant, officer, or elected or appointed official of CITY, or of <br />any designated public agencies, or the SUBRECIPIENT. <br /> <br />U Davis-Bacon Act. All laborers and mechanics employed by contractors or <br />subcontractors in the performance of construction work, including alterations and repairs, in excess <br />of $2,000.00, financed in whole or in part with federal funds shall be paid wages at rates not less <br />than those prevailing on similar construction in the locality as determined in accordance with the <br />Davis-Bacon Act, as amended, 40 US.c. sections 276a - 276a-5. Any such construction contract <br />shall include and comply with the required contract provisions and rules set forth in 29 C.F.R. S5.5. <br />Further, the payroll reports (along with the "Statement of Cornpliance") and basic records are <br />required to be maintained and submitted, or made available, pursuant to 29 C.F.R. s5.5(a)(3). No <br />payment, advance, grant, loan or guarantee of funds shall be approved by the federal agency unless <br />there is on file with the agency a certification by the contractor that the contractor and its <br />subcontractors have complied with the provisions of 29 C.F.R. S5.5. A breach of the contract <br />clauses in 29 C.F.R. S5.5 may be grounds for termination of the contract, and for debarment as a <br />contractor/subcontractor, as provided in 29 C.F.R. S5.l2. Labor standards interviews/investigations <br />shall be made as necessary to assure compliance [29 C.F.R. s5.6(a)(3)]. <br /> <br />V. Drug Free Workplace. SUBRECIPIENT certifies that it has established the following <br />drug-free workplace policy: <br /> <br />1. The unlawful manufacture, distribution, dispensing, possession or use of a <br />controlled substance is prohibited in the workplace for any employee involved in a federally funded <br />program. <br /> <br />2. As an employee working in conjunction with a federally funded program, the <br />employees of SUBRECIPIENT will be required to: <br /> <br />a) Abide by the terms above in statement 1. <br />b) Notify appropriate officials of SUBRECIPIENT and CITY officials of <br />any criminal drug statute conviction for a violation occurring in the workplace not <br />later than five days after such conviction. <br /> <br />3. The CITY and the United State Department of Housing and Urban <br />Development will be notified within ten days after receiving notice of any such violation. <br /> <br />4. Within 30 days of receiving such notice, appropriate personnel action will be <br />taken against such ernployee, up to and including termination. <br /> <br />7 <br />