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no <br />T. Financial Interest. SUBRECIPIENT agrees that except for the use of ESG funds <br />to pay salaries and other related administrative or personnel costs, no persons who exercise or have <br />exercised any function with respect to ESG activities assisted under the terms of this Agreement, or <br />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 ESG- 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 />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 U.S.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. §5.5. <br />Further, the payroll reports (along with the -Statement of Compliance") and basic records are <br />required to be maintained and submitted, or made available, pursuant to 29 C.F.R. §5.5(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. §5.5. A breach of the contract <br />clauses in 29 C.F.R. §5.5 may be grounds for termination of the contract, and for debarment as a <br />contractor /subcontractor, as provided in 29 C.F.R. §5.12. Labor standards interviews /investigations <br />shall be made as necessary to assure compliance [29 C.F.R. §5.6(a)(3)]. <br />V. Homeless Involvement. SUBRECIPIENT certifies that it will involve, to the <br />maximum extent practicable, homeless individuals and families in constructing, renovating, <br />maintaining, and operating facilities assisted under the ESG program. and in providing services for <br />occupants of these facilities [24 CFR 576.56(b); 42 USC I I375(d)]. <br />W. Drug Free Workplace. SUBRECIPIENT certifies that it has established the fol- <br />lowing drug -free workplace policy: <br />1. The unlawful manufacture, distribution, dispensing, possession or use of a con- <br />trolled substance is prohibited in the workplace for any employee involved in a f- ederally funded <br />program. <br />2. As an employee working in conjunction with a federally funded program, the em- <br />ployees of SUBRECIPIENT will be required to: <br />a) Abide by the terms above in statement 1. <br />b) Notify appropriate officials of SUBRECIPIENT and CITY officials of any <br />criminal drug statute conviction for a violation occurring in the workplace not later than five days <br />after such conviction. <br />15 <br />