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U. Davis -Bacon Act/ Section 3 Compliance. All laborers and mechanics employed by <br />contractors or subcontractors in the performance of construction work, including alterations and <br />repairs, in excess of $2,000.00, financed in whole or in part with federal funds shall be paid wages <br />at rates not less than those prevailing on similar construction in the locality as determined in <br />accordance with the Davis -Bacon Act, as amended, 40 U.S.C. sections 276a - 276a -5. Any such <br />construction contract shall include and comply with the required contract provisions and rules set <br />forth in 29 C.F.R. §5.5. Further, the payroll reports (along with the "Statement of Compliance ") and <br />basic records are required to be maintained and submitted, or made available, pursuant to 29 C.F.R. <br />§5.5(a)(3). No payment, advance, grant, loan or guarantee of funds shall be approved by the federal <br />agency unless there is on file with the agency a certification by the contractor that the contractor and <br />its 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. Economic Opportunities for Low Income Persons. SUBRECIPIENT certifies that, to <br />the greatest extent feasible, and consistent with existing Federal, State, and local laws and <br />regulations, employment and other economic opportunities generated by the CDBG Funds <br />disbursed pursuant to this Agreement will be directed toward low- and very low- income persons in <br />accordance with Section 3 of the Housing and Urban Development Act of 1968 (12 USC 1701u). <br />Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of <br />this contract for default, and debarment or suspension from future HUD assisted contracts. <br />W. Drug Free Workplace. SUBRECIPIENT certifies that it has established the <br />following drug -free workplace policy: <br />(1) The unlawful manufacture, distribution, dispensing, possession or use of a <br />controlled substance is prohibited in the workplace for any employee <br />involved in a federally funded project. <br />(2) As an employee working in conjunction with a federally funded program, <br />the employees of SUBRECIPIENT will be required to: <br />a. Abide by the terms above in statement 1. <br />Notify appropriate officials of SUBRECIPIENT and CITY officials <br />of any criminal drug statute conviction for a violation occurring in <br />the workplace not later than five days after such conviction. <br />(3) The CITY and the United <br />Development will be notified <br />such violation. <br />State Department of Housing and Urban <br />within ten days after receiving notice of any <br />(4) Within 30 days of receiving such notice, appropriate personnel action will <br />be taken against such employee, up to and including termination. <br />Each such employee shall be required to participate satisfactorily in a drug abuse assistance <br />or rehabilitation program approved for such purposes by a federal, state or local health, law <br />953911.1 <br />