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I . The unlawTlul 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 />_'. As an employee working in conjunction with a federally funded program, the <br />employees 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 <br />any criminal drug statute conviction for a violation occurring in the workplace not <br />later than five days after such conviction. <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 />4. Within 30 days of receiving such notice, appropriate personnel action will be <br />taken against such employee, up to and including termination. <br />Each such employee shall be required to participate satisfactorily in a drug abuse <br />assistance or rehabilitation program approved for such purposes by a federal, state or local health, <br />law enforcement, or other appropriate agency. <br />W. Uniform Administrative Requirements for Non-Governmental SubrecipientsiNon- <br />Profits. The following requirements and standards must be complied with: OMB Circular A-122 <br />"Cost Principles for Non-Profit Organizations" or OMB Circular A-21 "Cost Principles for <br />Educational Institutions", as applicable; 24 CFR Part 84, "Grants and Agreements with Institutions <br />of Higher Education, Hospitals, and Other Non-Profit Organizations," as modified by 24 CFR <br />570.502(b): and, OMB Circular A-133, "Audits of States, Local Governments and Non-Profit <br />Organizations". <br />X. Subpart K of 24 CFR 570. SUBRECIPIENT will carry out its activities in compliance <br />with the requirements of Subpart K of 24 CFR 570, however SUBRECIPIENT does not assume the <br />CITY's environmental responsibilities or the responsibility for initiating the environmental review <br />process under 24 CFR Part 52. <br />IL CITY'S OBLIGATIONS <br />A. Payment of Funds. Upon execution of this Agreement by SUBRECIPIENT, CITY shall <br />pay to SUBRECIPIENT from CDBG funds, when, if and to the extent received from HUD, for <br />CITY's 201 1-2012 CDBG program year amounts expended by SUBRECIPIENT in carrying out <br />said program for fiscal year 201 1-2012 pursuant to this Agreement up to a maximum aggregate <br />payment of Sixty Thousand Dollars (S60,000) in installments determined by CITY. Payments shall <br />be made to SUBRECIPIENT through the submission of invoices on a quarterly basis on or before <br />the 15'x' of the following months (October, January, April and July) in a form prescribed by CITY, <br />detailing such expenses. <br />8 <br />Exhibit 1