HomeMy WebLinkAbout02.25.13 EDA Packet 16.0.
AGENDA
REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING
February 25, 2013
7:00 P.M.
CITY COUNCIL CHAMBERS
Todd Larson, Douglas Bonar
Geraldine Jolley, Steve Wilson,Kirk Zeaman
Action Taken
1. Call Meeting to Order
2. Pledge of Allegiance
3. Roll Call
4. Approve Agenda
a) Organizational Matters
i. Election of Officers Larson—Chair
ii. Meeting Schedule Jolley—Vice-Chair
iii. Adoption of By-laws By-laws Approved
5. Citizen Comments/Presentations
a) Ice for Tigers Information Received
6. Consent Agenda
a) Meeting Minutes (1/28/13 Regular)(2/20/13 Workshop) Approved
b) Bills: 1/28/13 —2/24/13 Approved
7. Public Hearings
8. Continued Business
a) CDBG Senior Center Scholarship Program—Lisa Henning Approved
b) Open to Business Program—Laurie Crow(See Orientation Manual) Tabled
c) Business Development Grant Revision Discuss Further
d) 2013 Business Visit Plan- (See Orientation Manual) Dates Set
e) Business Attraction Plan- (See Orientation Manual) Target Business List
f) Business Subsidy Policy- (See Orientation Manual) Workshop
g) Bank Summit March 20, 2013 - (See Orientation Manual) March 20, 2013, 2 pm
h) Review Proposed Economic Development Support Resolution Information Received
9. New Business
a) Approve CDBG Agreement Triton Properties, LLC Approved$6,522.38
10. City Staff Reports/Open Forum/Discussion
11. Adjourn
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V i/yc�► City of Farmington
430 Third Street
c� y Farmington,Minnesota
.'104 651.280.6800.Fax 651.280.6899
www.ci.farmington.mn.us
TO: EDA Members
FROM: Cynthia Muller, Executive Assistant
SUBJECT: Annual Organizational Matters
DATE: February 25, 2013
INTRODUCTION/DISCUSSION
Attached are the proposed 2013 Economic Development Authority(EDA)By-Laws. Section 1,
subdivision 3 of the by-laws requires direction from the EDA regarding the following:
a. Election of Officers
The EDA By-Laws provides that each year, the EDA shall choose a Chairperson and
Vice-Chairperson. A Secretary and Treasurer must also be appointed which typically is
assigned to the Executive Director, as neither need be a commissioner.
b. Meeting Schedule
The EDA shall establish a meeting schedule for the year. Attached is the City's Board
and Commission meeting calendar which identifies the date of each EDA meeting. EDA
meetings are held the fourth Monday of each month at 6:30 p.m. If that Monday is a
holiday,the EDA meeting would be held the next day. EDA members should confirm
that this meeting schedule works for all members.
Please provide action for the above listed items. A copy of the revised by-laws is enclosed.
ACTION REQUESTED
Approve the 2013 Economic Development Authority By-laws.
Respectfully submitted,,/�
ynthia Muller
Executive Assistant
X22013
ECONOMIC DEVELOPMENT AUTHORITY BY-LAWS
These By-Laws,when adopted, are intended to deal with matters not otherwise covered by State Law,
City Ordinance or elsewhere.
Section I—Meetings
SUBD. 1 —Regular meetings of the Economic Development Authority shall be held on the fourth(4th)
Monday of each month at 6:30 PM. Any regular meeting falling upon a holiday shall be held on the
next following business day at the same time and place. All meetings, including special and adjourned
meetings, shall be held in the City Hall unless otherwise designated.
SUBD. 2— Special meetings of the Authority may be called by the Chairperson or in written form by
any other two(2)members of the Authority, filed with the Executive Director. The Executive Director
may also call a special meeting. At least three (3) days before the meeting,the Executive Director shall
notify each member of the time, place and purpose of the meeting by causing written notice thereof to
. -. - - ,L- - - ., . . :, -- -- .. . . . . .. :, . . . : .
electronic format. At least three (3)days prior to the meeting,the Executive Director shall also
post notice of the meeting and if applicable, notify each person who has filed an applicable written
request for notice,or may, if necessary,provide such other more restricted notice, including but not
limited to(as allowed by Statute, such as)M.S. 471.705, subd. 1C,paragraph g, "if a person receives
actual notice of a meeting of a public body at least 24 hours before the meeting,all notice requirements
of this subdivision are satisfied with respect to that person,regardless of the method of receipt of
notice." Emergency meetings may be held because of circumstances that,in the judgement of the
Authority require immediate attention. The notice of special meeting shall state the item(s)to be
discussed and acted upon. Items not stated in the notice may be discussed, but no action may be taken
if any member objects.
Any special meeting attended by a majority of the Authority members shall be a valid meeting for the
transaction of business that may come before the meeting.
SUBD. 3 —At the regular Authority meeting in January of each year,the Authority shall (1)choose a
Chairperson and a Vice-Chairperson,who shall perform the duties of the Chairperson during the
Chairpersons disability or absence and in case of a vacancy in the office of Chairperson and until a
successor has been appointed and qualifies to fulfill the duties of Chairperson; (2) establish a meeting
schedule for the year and; (3) appoint a Secretary and Treasurer, which need not be a commissioner.
The official newspaper is hereby designated annually to reflect the designation of the City Council
with respect to legal notifications.
SUBD. 4—All Authority meetings, as defined by State Law, including special and adjourned meetings
shall be open to the public. The Authority Attorney shall advise the Authority in writing as to his
interpretation of the state"Open Meeting Law" and all new members shall be provided such written
interpretation.
H:\Economic Development\2013 Board Agendas&Memos\2013 EDA By-Laws 2-25-13.doc 1
Section II Presiding Officer; Rules of Order
SUBD. 1 —The Chairperson shall preside at all meetings of the Authority. In the absence of the
Chairperson, the Vice-Chairperson shall preside. In the absence of both,the Executive Director shall
call the meeting to order and shall preside until the Authority members present at the meeting choose
one of their members to act temporarily as presiding officer.
SUBD. 2—The presiding officer shall preserve order, enforce the rule of procedure herein prescribed,
and determine all questions of procedure and order. Except as otherwise provided by statute or by
these rules, the proceedings of the Authority shall be conducted in accordance with the following rules
of order:
A. A Motion must be seconded before being considered by the Authority and the presiding
officer must recognize mover, as well as the seconder.
B. Any motion may be withdrawn by its mover with the consent of his/her second. But a
motion, once debated, cannot be withdrawn except by a majority vote of the Authority.
C. A motion will not be subject to debate until it has been stated by the presiding officer
and he/she has opened it to debate.
D. Each member,while speaking, shall confine himself/herself to the question at hand and
avoid all personal, indecorous or sarcastic language.
E. Whenever any member of the Authority desires to speak on any question, which affects
him/her personally,he/she shall first vacate his/her chair and shall not resume his/her
seat until the matter under consideration has been acted upon. He/she shall be allowed
to make comments on the question as a private citizen only and while a member of the
audience.
F. Whenever public hearings are held,the presiding officer, shall allow any member of the
public,the privilege of speaking. A reasonable time shall be allowed to anyone as long
as they are not repeating points already made. The presiding officer shall maintain
order and may rule anyone out of order.
G. At any meeting,the presiding officer will allow the public to participate as long as there
is reason to believe the input is beneficial.
SUBD. 3 —Any member may appeal to the Authority from a ruling of the presiding officer. If the
appeal is seconded,the appealing member may speak first on the reason for his/her appeal. General
discussion can then take place on the appeal before a vote. The appeal shall be sustained if it is
approved by a majority of the members present.
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Section III—Agendas
SUBD. 1 —The agenda shall be prepared by the EDA Executive Director and shall be closed at noon
on the Wednesday preceding the meeting for publication purposes.
SUBD. 2—Any member may place an item on the agenda by so instructing the Executive Director.
SUBD. 3 —No item shall be placed on the agenda unless the item is expressed in such a way as to
clearly show the subject matter involved
SUBD. 4—The agenda add-ons are subject to approval by a majority vote of the members present and
further such add-on items may be discussed, but no action may be taken if any member objects.
Section IV—Order of Business
SUBD. 1 —Each meeting of the Authority shall convene at the time and place appointed therefore.
Authority business shall be conducted in the following order:
1) Call to Order
2) Pledge of Allegiance
3) Roll Call
4) Approve Agenda
5) Citizen Comments/Presentations
6) Approve Consent Agenda
a. Minutes
b. Bills
c. Additional Consent Agenda items
7) Public Hearings
8) Continued Business
9) New Business
10)City Staff Reports/Open Forum/Discussion
11)Adjourn
SUBD. 2—The order of business may be varied by the presiding officer, except that all public hearings
shall be held at the time specified in the notice of hearing.
Section V—Minutes
SUBD. 1 —Minutes of each Authority meeting shall be kept by the Executive Director or, in his/her
absence,his/her designee. In the absence of both,the presiding officer shall appoint a secretary pro
tern. Resolutions need not be recorded in full in the minutes if they appear in other permanent records
of the Executive Director and can be accurately identified from the description given in the minutes.
SUBD. 2—Minutes of each meeting shall be reduced to typewritten form, shall be signed by the taker,
Wig. At the next regular Authority meeting , approval of the minutes shall
be considered by the Authority. The minutes need not be read aloud,but the presiding officer shall call
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for any additions or corrections. If there is an objection, the Authority shall vote upon the addition or
correction. If there are no additions or corrections,the minutes shall stand approved by motion. If
there is an objection,the Authority shall vote upon the addition or correction and approve the minutes
by motion as amended.
Section VI—Quorum and Voting
SUBD. 1 —At all meetings a majority of all members shall constitute a quorum for the transaction of
business.
SUBD. 2—The votes of members on any question pending before the EDA shall be by voice votes.
Roll call vote can be requested by any member, except for the following agenda items; approval of the
agenda; approval of the consent agenda; and the adjournment. The names of those voting for and
against the question shall be recorded in the minutes. If any member present does not vote,the
minutes shall state: "Abstain:Name".
SUBD. 3 —Except as otherwise provided by statute, a majority vote of the quorum shall prevail.
Section VII—Executive Director
The Authority may appoint and provide for annual performance reviews of an Executive Director.
Section VIII—Suspension or Amendment of the By-Laws
SUBD. 1 —These by-laws may be temporarily suspended by a unanimous vote of the members present.
SUBD. 2—These by-laws shall not be repealed or amended except by a majority vote of the whole
Authority after notice has been given at some preceding meeting.
Section IX—Effective Date
SUBD. 1 —These by-laws have been adopted by the
on the day of , 20 and becomes effective
immediately.
Attest:
EDA Executive Director EDA Chairperson
Date: Date:
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MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
Regular Meeting
January 28, 2013
1. CALL TO ORDER
The meeting was called to order by Chair Larson at 6:30 p.m.
Members Present: Larson, Bonar, Donnelly, Jolley
Members Absent: Bartholomay, Fogarty
Also Present: Lee Smick, City Planner; Cynthia Muller, Executive Assistant
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
4. APPROVE AGENDA
MOTION by Donnelly, second by Bonar to approve the Agenda. APIF,MOTION
CARRIED.
5. CITIZEN COMMENTS/PRESENTATIONS
a) Introduction of Mark Lofthus—New Economic Development Director,
Dakota Electric
Mr. Loftus discussed his role with economic development. His basic role is to be
a resource for the communities served by Dakota Electric. Chair Larson noted the
EDA will definitely use him as a resource. Member Donnelly asked about his job
description. Mr. Loftus stated there are three key staff members at Dakota
Electric who have divided up their major customers. Mr. Loftus helps customers
within their territory grow their business. His three goals are to help grow energy
services, grow the load on their system with more customers and increased use,
and over time they have to meet conservation goals. They also help to increase
jobs in Dakota County. He is currently working with a customer that wants to
grow to identify sites. Mr. Loftus also helps to attract new business into the
county. He spoke about the Angel Tax Credit program created three years ago at
the state level. Eleven businesses in Dakota County have benefited from this
program. Mr. Loftus can work with the chamber, local development groups, etc.
with putting together programs to determine how businesses can be certified
under the program. He would be willing to go with staff to visit with a business
to discuss how programs and financing works even though they are not served by
Dakota Electric. Mr. Loftus mention a data center is looking for a site and would
need fiber optics. Chair Larson suggested to the west of the Dakota County
highway shop and the west side of Pilot Knob, north of hwy 50. City Planner
Smick agreed that Mr. Loftus will be a valuable resource and they will be meeting
on a consistent basis.
b) Introduction of Ms. Laurie Crow—"Open to Business" Program
Ms. Crow was unable to attend the meeting.
EDA Minutes(Regular)
January 28,2013
Page 2
6. CONSENT AGENDA
MOTION by Bonar, second by Donnelly to approve the Consent Agenda as follows:
a) Approved Meeting Minutes(11/26/12 Regular)
b) Approved Bills 11/21/12— 1/27/13
c) Received November 2012 Budget
APIF,MOTION CARRIED.
7. PUBLIC HEARINGS
8. CONTINUED BUSINESS
a) Review Economic Development Strategic Plan
i. Summary of 2012 Accomplishments—Tracking Sheet
Chair Larson recommended presenting this to the new EDA and to continue
with the list.
ii. Business Visits 2012 Summary and Plan for 2013
There were 48 business visits in 2012. City Planner Smick will work with the
new EDA on scheduling visits. She has developed a Business Retention and
Expansion program which will be given to new EDA members. Member
Bonar suggested in order to get as many people involved in business visits as
possible, he asked if staff has considered doing visits on Saturdays. His
availability Monday through Friday is not good. He was concerned that two
or three people may have to do all the visits. Member Jolley noted she
enjoyed the visits and would be sad not to be able to do it. Member Bonar did
not want to eliminate others,he would like to join in on the visits. Member
Jolley asked if we would still be drawing from the entire Council or just the
EDA. Chair Larson suggested proposing that question to the new EDA.
Member Bonar agreed the visits should be represented by the EDA and the
Council as much as possible.
iii. Business Attraction Plan
City Planner Smick presented a draft plan with a timeline. The purpose of the
plan is to bring in new businesses and retain existing businesses. Staff
proposed to bring in seven people, two EDA members, two business owners
(one from the FBA and another business owner), one from the school district,
Mr. Mark Loftus of Dakota Electric, and City Planner Smick. This group
would discuss the plan and the steps involved. This will be brought to the
new EDA on February 25, 2012, and then to the Council on March 4, 2012,
for support of economic development. The EDA will review applications
received from those interested in being on the business attraction team on
March 25, 2012, and the EDA will determine members. Staff is hoping for
the plan to begin in April 2013. The Council would adopt the plan in July
2013.
iv. Business Subsidy Policy
This policy was first recreated by the HRA in 1999, and revised in 2002. City
Planner Smick has now revised the policy and will have it reviewed by the
City Attorney. Staff also presented a tax abatement policy, which is
something the EDA is still considering whether to offer. The EDA also
EDA Minutes(Regular)
January 28,2013
Page 3
received a proposed Business Incentive Program which would be similar to
the CDBG business development grant. However, the funding would not
come from CDBG money. Staff would like the EDA to have an amount of
money, such as $25,000, and anyone that is existing or new could request
funding from $1,000 - $7,500. This would be for improvements such as a
new awning or to repair bricks, etc. For rent assistance,there is the CDBG
microenterprise funds,but there are several requirements to receive that.
Member Donnelly asked about the source of the funds. City Planner Smick
explained this would come from the $50,000 budgeted for the EDA. Member
Bonar liked having these tools in the toolbox. It does not mean we have to
use all of them, and gives us more than one avenue to assist businesses.
v. Bank Summit Date and Information
City Planner Smick proposed this summit be held on March 20, 2013, and
provided a list of incentives to be discussed. The purpose of the summit was
to partner with the local banks for business funding and to inform the banks of
available funding. Banks have been very receptive to this meeting. Member
Jolley noted Wells Federal is an industrial thrift which means they have
lending capacity. She suggested inviting them also.
9. NEW BUSINESS
a) Triton Properties,LLC—Commercial Rehab Grant Application—CDBG
Funding
This is a new retail business at 705 8th Street, former Oasis Market. Three
existing underground petroleum storage tanks need to be removed. The CDA will
provide assistance in the amount of$15,000 with a 1:1 match. So $7,500 would
be taken out of the CDBG funds. The City Attorney will need to put together a
grant execution which will be approved by the City Council. Member Jolly asked
if an impact study has been done, do we know if there is any contamination, and if
there is then it becomes much more expensive and where does that leave us. City
Planner Smick stated the CDA follows the testing when the tanks are removed.
The contractor is liable for any contamination that might occur. Member Jolley
cautioned that when tanks are dormant for this long,things come up and it
becomes much more expensive. She wanted to make sure we will determine the
impact. City Planner Smick agreed and noted if there is contamination cleanup
required, it will be at the owner's expense. Member Donnelly noted usually the
new owner is not willing to take on the unknowns and requires that the seller
takes care of that. It seems odd that he is not indemnified by the seller. Member
Jolley stated there should be some documentation from the previous owner. Staff
will look into this. For tonight, staff was asking for approval of using$7,500
from the rehabilitation grant for this purpose. The City would not be liable if
contamination is found. MOTION by Donnelly, second by Bonar to award a
City of Farmington Commercial Rehabilitation Grant in an amount up to $7,500
to Triton Properties, LLC. APIF, MOTION CARRIED.
b) Approve Joint Powers Agreement—"Open to Business" Program
This agreement was to work with ten communities in Dakota County and the
CDA to join the Open to Business program. The cost for Farmington to join is
$5,000,which was included in the 2013 budget. The Contract for Services is
EDA Minutes(Regular)
January 28,2013
Page 4
between the CDA and the MCCD. Ms. Laurie Crow will be the MCCD staff
person for Farmington. She will have regular hours at City Hall for businesses to
meet with her and will provide quarterly updates to the EDA. MOTION by
Bonar, second by Donnelly to approve the Joint Powers Agreement to participate
in the Dakota County CDA and MCCD"Open to Business"program. APIF,
MOTION CARRIED. City staff will be talking to the new EDA and City
Council about promoting this program.
c) CDBG Funding Request for FY2013 and Proposed Revision of Business
Development Grant Program
In December 2012, the EDA agreed to the proposed funding applications.
Currently we have a Business Development Grant program that allows for
$15,000 through CDBG. This grant was prepared in 2008 and at that time
existing businesses wanted money for expansion. At that time,the EDA did not
approve this for new businesses. The City has a new restaurant coming in which
needs to purchase new equipment and is requesting the$15,000 in funding. Staff
would like to expand the Business Development Grant not only to existing
businesses,but also to new businesses. These grants are just for one time use by a
business. Installed Building Solutions received a$15,000 grant for improvements
in their old building, and now would like another$15,000 for their new building.
Currently they cannot apply again. Staff asked if the EDA would like to revise
this one time provision. Member Donnelly asked who put the rule in place. Staff
stated the grant is paid through CDBG funds,but each City can put together their
own requirements. Member Donnelly would be in favor of limiting the number of
years before you can re-apply. Staff asked that the EDA approve the new text
added to the business development grant allowing new and existing businesses to
apply for the grant and staff will further review the provision on re-applying.
Member Jolley suggested limiting the number of times a business can re-apply
and the precedent that could establish for future businesses. Member Bonar
suggested holding a recommendation until further review. MOTION by Bonar,
second by Donnelly to add new businesses to the scope of the Business
Development Grant program. APIF,MOTION CARRIED. This will be
brought to the February 4,2013, Council meeting.
d) New EDA Members Orientation
City Planner Smick provided a list of items to be discussed at the EDA
orientation.
10. CITY STAFF REPORTS
a) 2012 Members
City Planner Smick thanked the 2012 EDA members for their service. Chair
Larson noted we have done a lot of work in the past couple years,but we have to
take this work and get it out on the streets to get some results.
Regarding the CDBG funds, there is $16,000 for the senior center scholarship program.
This is for seniors who cannot afford a membership. This funding could be spread out
among a number of potential members. These funds could also be used for program
participation. Staff will also formally bring this to the new EDA. Chair Larson asked if
it was $16,000 annually. City Planner Smick replied no,we received allotments and this
EDA Minutes(Regular)
January 28,2013
Page 5
has been sitting in the CDBG funding for a couple years. Member Donnelly recalled this
was for staff funding. City Planner Smick explained it was going to be for a part-time
staff person for the senior center. That is no longer allowed, so now it is for membership
and program assistance. Member Jolley asked if it has to be used for that purpose
because that is a lot of money for scholarships for seniors. Member Bonar stated that is
$40/each. Member Jolley stated that is more money than we have had in this budget
since she has been on the EDA. Member Bonar stated you would triple the membership
of the Rambling River Center. City Planner Smick stated that is what the Rambling
River Center is trying to do. Member Donnelly stated you could give everyone a free
membership and still have money left over. Member Jolley stated that is too much
money for that. Staff stated it has to be spent for membership assistance or program
participation. Member Bonar saw it has a stretch last year and it is still a stretch this year.
Member Donnelly recalled $10,000 was for part time staff. Staff will review this further
and bring it back to the EDA in February. If we do not use it,the CDA could take it
away. When we re-allocate from one fund to another,the CDA has to distribute a public
hearing notice with a 30-day public comment period. Chair Larson would like to know
the Parks and Recreation Director's reasoning behind the $16,000. City Planner Smick
stated staff would like to increase the revenue for the senior center.
Member Jolley recalled there was a discussion about the money from the sale of the old
senior center building being put into the EDA budget. Chair Larson stated that was taken
away during budget discussions.
Member Jolley noted the Community Expo was fun with great networking. She learned
of a new payroll company in town.
Member Bonar stated the Expo was excellent. You can see some of our efforts coming to
fruition through conversations. People have noted we are out and about in the
community and he heard several compliments about our proactive business stance.
11. ADJOURN
MOTION by Donnelly, second by Bonar to adjourn at 7:38 p.m. APIF, MOTION
CARRIED.
Respectfully submitted,
Cynthia Muller
Executive Assistant
Economic Development Authority Orientation
Minutes
February 20,2013
Present: Todd Larson, Mayor; Jerri Jolley, Steve Wilson, Kirk Zeaman
Absent: Doug Bonar, Councilmember
Also Present: Lee Smick, City Planner; Robin Hanson,Finance Director; Cynthia Muller,
Executive Assistant
The workshop began at 6:00 p.m.
EDA Budget—At the end of 2011 there was a negative fund balance of$137,000. Council
adopted a budget for 2012 adding$225,000 to the EDA from the levy. This was to wipe out the
deficit and to provide $50,000 in operating funds, which a large portion of this was used to pay a
loan for the Library. There was enough cash in the EDA to pay off the entire Library loan. The
EDA now has the full $50,000 to use during 2013. Loans receivable include a monthly payment
from Vinge Tile,which will mature November 7, 2018. CEEF was given a loan to repay debt
from Dew Days and they pay as they have funds available. The remaining balance is $10,932.94
and will mature in 2014. At the end of December 2012 there was $34,000 available in cash and
there will be $50,000 coming in through the tax levy. The first half will be available in July
2013 and the second half will be available in December 2013/January 2014. The EDA has
allocated$5,000 for the Open to Business Program. There has also been a discussion with the
FBA to give them funding for marketing materials for Grow Farmington. If the EDA wants to
revise the EDA budget to move money to a marketing line item, a revised budget can be taken to
Council. At each meeting,the EDA is provided with a list of bills paid, and also a monthly
budget spreadsheet. CDBG funds are not part of the EDA budget.
City Planner Smick will be working on incentive programs February—July. The EDA has the
powers of an HRA and an EDA. We are not only doing economic development,we are also
handling low/moderate housing.
The 2030 Comprehensive Plan and Zoning maps were reviewed. The comp plan is reviewed
every three years. Member Wilson asked about the ability to look at commercial development
on the eastern border ahead of any action on the Seed property. The Seed family was at a
Council meeting in 2012 and when they are ready they will start with commercial development.
There is no timeline.
Regarding Vermillion River Crossing,there are two businesses that are interested in the long
term. There is discussion that the credit union is considering selling their lot. If someone wants
to develop in VRC, they will ask for assessments to be waived. The City would be willing to
negotiate on assessments. Member Wilson asked if staff has thought about what has not worked
and where opportunities are. City Planner Smick stated we need to start determining locations
and target industries we have to go after. This will happen in the Business Attraction Plan.
Member Zeaman suggested updating the SWOT analysis.
EDA Orientation
February 20,2013
Page 2
The Open to Business program will be launching in February 2013. Ms. Laurie Crow, MCCD,
will be at City Hall the fourth Tuesday of every month to meet with business owners. Mayor
Larson suggested partnering with Dunn Bros, Pellicci Hardware, places with a lot of foot traffic
to get the word out. Member Wilson noted our allies are realtors and bankers. They market the
community more than anyone and need to know the good things we are doing. Member Zeaman
noted Bob Voss, DCTC, has offered to do an event. Member Wilson stated this program will not
fill up the industrial park. This program will target downtown,VRC, and Tamarack. Mayor
Larson stated we are not targeting any one thing,because we need so much. We need to focus
and concentrate on certain areas and then move on. Member Wilson felt the City perceives a
greater deficit than the residents. Residents have become accustomed to driving to Target or Cub
in Apple Valley. He feels the biggest opportunity is the industrial park. Staff noted another
industrial park is proposed north of hwy 50 and west of Pilot Knob Road,but there is no
infrastructure out there. It will take the City Council to put the first road in and prepare a couple
lots. Perhaps we start at Flagstaff and work east. Member Jolley noted part of the business visits
is hearing the expansion goals and we can keep them in mind as areas become available.
Business Visits—Staff has prepared a calendar for visits for 2013. A summary of comments
from 2012 visits was provided. Staff is proposing a visit to the FAA in March.
Business Attraction Plan—A resolution will be presented to the City Council to show support of
economic development in all their decisions. Member Zeaman has demographic data he will
forward to staff. He noted the website has improved greatly in the last six months. Member
Wilson asked what will make a business look at Farmington? Is it readily available information?
City Planner Smick stated we need a community profile on our website. Member Zeaman stated
a business needs to define an opportunity to come here. It comes down to the number of
rooftops. Steps of the Business Attraction Plan are Citywide support, data collection, marketing,
direct interest to City businesses, remove barriers to development, connect and support key
business and employment districts, leverage and network with key local,regional, state, and
federal partners. Member Zeaman suggested defining the metrics before getting too far into the
program.
Grow Farmington—This effort started with a huge crowd of people and slowly dropped off. The
top 10 ideas to promote Farmington were reviewed. Member Jolley liked the idea of
collaborating with the school to have concerts in the park. That would bring parents out and add
something for the youth. Mayor Larson noted what we need is for other entities to take over
events. That is also what the Grow group needs to do.
Shop Local Campaign—Window stickers have been delivered to businesses. Some people don't
know what the campaign is. The Farmington Independent articles are helping.
CDBG Funds—We did lose $17,510. The CDA gave it to Coates for weather sirens. As of
January 2013, we have $49,157 in residential rehab and have not received any applications for
this in two years. Staff proposes moving that to commercial rehab and business development.
Commercial rehab is for safety and health issues up to $35,000. It is a 1:1 match. The business
development grant is for buying equipment if it has to do with relocation or a new business. The
microenterprise grant is for rental assistance. The public service—senior center will be brought
•
EDA Orientation
February 20,2013
Page 3
to the February 25, 2013 EDA meeting. Staff will be requesting the $16,000 be put in a fund for
low/moderate income for elderly that want to belong to the Rambling River Center or use it as a
scholarship for programs.
Business Development Grant Program—The EDA has recently revised this grant to include not
only existing businesses, but also new businesses. This grant is written by the EDA, so the EDA
can revise it to meet their needs. Currently it is a one time grant. Staff will be proposing that a
business has two opportunities every four years to request funds. This will show support for the
business to expand. Staff will be working on criteria that is fair to everyone.
Business Subsidy Policy—This sets the makeup of the Tax Abatement Policy and the Business
Incentive Policy. The EDA needs to learn more about tax abatement before determining if they
want to offer this. The Business Incentive Program would help businesses keep up with building
maintenance,meets code requirements,new awnings, etc. Staff is proposing to fund this with
$25,000 of EDA money. Amounts to businesses would range from$1,000 - $7,500. It needs to
be determined who needs this program and how do we get it out to them. Member Jolley felt it
could be brought up at the bank summit.
Bank Summit—This will be held on March 20, 2013. Local banks will be invited to learn about
the types of incentives available. Banks like to have their name mentioned in conjunction with
something going on in the City. Staff would like to show more on the City website about what
we are offering.
Mayor Larson asked if the EDA should have their own Facebook page,twitter account, or use
YouTube? We need to get to the youth coming out of college. Member Wilson stated there are
so many angles of different things going on,he suggested coming up with some sustainable,
ongoing things we can do, such as bank financing and business visits. Focus on things that will
have the greatest impact. Member Jolley noted when banks are examined,they are asked what
have they done to assist small businesses, so banks will be anxious for the bank summit.
The workshop adjourned at 7:43 p.m.
Respectfully submitted,
Cynthia Muller
Executive Assistant
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430 Third Street
• �- Farmington, Minnesota
`�A' � 651:280.6800•Fax 651.280.6899
44,7.A mo www.ci.farmington.mn.us
TO: Economic Development Authority and Lee Smick, City Planner
FROM: Randy Distad, Parks and Recreation Director
Missie Kohlbeck, Senior Center Coordinator
RE: Request for Rambling River Center Community Development Block Grant Funding
DATE: February 25, 2013
BACKGROUND:
Beginning in 2000 and ending in 2030 it is estimated that Minnesota will see an increase from 12.1%to 24%
in the total population being 65 years and older. This means about 1 in 4 Minnesotans will be over age 65 in
2030. The City of Farmington recognizes this change is coming and is preparing to meet the new challenges
it will face with an aging population. Perhaps the most significant way the City has prepared for the increase
in an aging population was when it approved having the Rambling River Center(RRC)move its operations
into the former City Hall building at 325 Oak Street in October 2009. This move entailed an extensive
renovation of the building to meet the needs of an increasing aging population. This new larger facility has
provided the RRC with not only new opportunities, but has also created new challenges.
DISCUSSION:
The Community Development Block Grant(CDBG)program was created in 1974,with Dakota County first
receiving funds in 1984. The primary goal of the CDBG Program is to develop viable communities for
persons of low and moderate income through decent housing, suitable living environment, and expanded
economic opportunities. To enforce this primary goal, each year not less than 70 percent of CDBG funds
must be used for activities that benefit low and moderate income persons.
Staff members previously requested CDBG funding in 2011 for a part time position at the RRC for
additional coverage at the RRC during evening hours and weekend rentals;to offer additional programming;
and keep the fitness center open during weekday evenings. After the application was submitted,the U.S.
Department of Housing and Urban Development(HUD) office determined this activity was only eligible if
one of the following could be met:
• Provide documentation that 51% of all RRC members have incomes in the low/mod income
bracket, or
• Provide documentation that 100% of the RRC members were 62 years or older. (HUD
defines a senior as 62 years of age or older. Seniors are defined as a low/mod limited
clientele group and meet the low/mod income requirement.)
Administratively, income verification for all RRC members was determined to be too cumbersome and may
not result in 51%or more of RRC members meeting the low/mod income bracket. Based upon RRC
applications, staff knew that 100% of the RRC members were not 62 years of age or older. Therefore, it was
determined that funding a RRC part-time staff person with CDBG dollars was not an eligible activity.
Because of this determination staff submitted a new request to have a RRC financial support program be
implemented for low to moderate income persons. The financial support program would allow persons who
could prove they qualified under HUD's low to moderate income level (either by income verification or age)
an opportunity to access the following at the RRC:
• RRC annual general membership
• RRC fitness room annual membership
• Register and participate in programs and events
• Access social, health and wellness services offered at the RRC
70%of senior center membership nationwide is women. The RRC is no exception. 86%of the current
membership is women and 69%of total membership is single women. This has provided an opportunity to
expand RRC programs and services to meet the needs of this demographic group. Since moving into the
renovated building,new opportunities to attract older adults and continue serving the current users have
surfaced including:
• Serving as a gateway to community services such as public benefit counseling, aging at home
services, and support for caretakers.
• Programs to support and enhance independent living.
• Expanded fitness center, which provides new opportunities for an increase in fitness and wellness.
• Increased meeting space providing more social opportunities.
• Increased class room space in which to expand educational programs.
• Increased space for large gatherings and special events.
There are currently a little more than 400 members at the Rambling River Center. Staff has set a goal of
increasing the membership over time. One way to do this is to eliminate the financial barrier by creating an
Older Adult Financial Support Program(OAFSP). While more than 50% of current members would qualify
for an OAFSP, it is people who live in the Farmington area who are not current members, but would qualify
as a low to moderate income person that the OAFSP is attempting to target. Current members would still be
able to access the OAFSP if they met the low to moderate income guidelines set by HUD. There are many
benefits to creating an OAFSP and they include:
• Providing opportunities for older adults to participate in RRC programs and services by removing a
financial barrier to do so
• Increase the health and wellness in older adults through participation in programs that focus on these
two areas
• Increase the revenues that are received at the Rambling River Center and make it less dependent on
local taxpayer subsidy
• Provide a support network that fosters a sense of community and camaraderie for older adults
• Provide access to health care screenings for early detection of health issues in older adults whose
schedule may not allow them to attend screenings during the daytime hours. These screenings could
be a preventative measure for older adults by making them aware of a medical condition they have
such as high blood pressure, diabetes and coronary issues. It could include other preventative
measures such as providing flu shots by a medical third party
• Provide access to leisure programs that feature traveling to cultural events and other communities
• It would keep older adults active in order to continue to maintain independence while increasing the
social network
Staff is requesting up to $16,000 be used for the OAFSP because it felt to start with a higher amount would
encourage more community members to apply. A draft application form has been attached,which would be
required to be completed in order to determine if a potential candidate for the OAFSP qualifies under the low
to moderate income level, which is set by HUD, or qualifies under the age category(62 years or older for
seniors). The following table shows the 2013 income limits to qualify as a low to moderate income
household:
1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
Household Household Household Household Household Household Household Household
Income $45,100 $51,550 $58,000 $64,400 $69,600 $74,750 $79,900 $85,050
Limits
As you can see on the draft application form,proof of income,by providing ones most recent Federal tax
return, would be required and this information would be kept confidential.
ACTION REQUESTED:
The Economic Development Authority is being asked to approve the request to allow up to $16,000 of
Community Development Block Grant Funding to be used for an Older Adult Financial Support Program
and forward a recommendation to the City Council to also approve this request.
Respectfully Submitted,
Randy Distad, Parks and Recreation Director
Missie Kohlbeck, Senior Center Coordinator
Rambling River Center's Financial Support Program Application Form
Please complete all information. We reserve the right to verify all information contained on this form.
Applicant's name: Birth Date:
Today's Date: Home phone: Work phone:
Address: City: Zip:
*Email:
*email address will be used to notify applicant of the decision or if additional information is needed
List number of family members living in household:
Briefly describe how much financial support you are requesting and what it will be used for at the Rambling
River Center:
Applicants requesting financial support must meet the low to moderate income levels as defined by the Federal
Department of Housing and Urban Development (HUD). Please see back of form for the income eligible limits.
Please note: All applicants must show proof of income by providing a copy of the most recent year's
Federal Income Tax Return Form
NOTICE: The application period is for the annual calendar year. Any change in income that would cause the applicant to
exceed the income eligible limits set forth by HUD will cause the applicant to no longer be eligible for this program unless
the applicant's income level changes and meets the income eligible limits set by HUD. A new application form must be
completed each calendar year in order to verify that the applicant meets the current income eligible limits set by HUD. may
not be available for all classes or programs. Please allow a period of at least five(5) business days to determine
scholarship eligibility
Acknowledgement of Correct Information:
I acknowledge that the information contained on this application is accurate and correct. I hereby give permission to the
Farmington Parks and Recreation Department to verify this information. I understand that if any information on this
application form is found to be incorrect, my privileges of applying for scholarship funding could be revoked.
Signature of Applicant: Date:
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FOR OFFICE USE ONLY, APPLICANT DO NOT COMPLETE
Date and initials of staff person receiving application:
Request is: Approved Denied
Signature of Parks and Recreation Director or Designee Date
HUD 2013 Income Limits for Rambling River Center's Financial Support Program
Household 1 Person 2 Person . 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
Size
Income
Not to $45,100 $51,550 $58,000 $64,400 $69,600 $74,750 $79,900 $85,050
Exceed
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430 Third Street
Farmington,Minnesota
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" www.ciSarmington.mn.us
TO: EDA Members
FROM: Lee Smick,AICP, CNU-A
City Planner
SUBJECT: Business Development Grant Revision
DATE: February 25, 2013
INTRODUCTION
City staff has further reviewed the Business Development Grant(BDG) criterion which is funded
through the CDBG program. Staff would like the Economic Development Authority(EDA)to
consider a revision to the BDG language that would allow a second opportunity for businesses to
receive CDBG funding. The proposal would allow a business to apply twice for funding after a
four year period of receiving the first CDBG funding approval. This offers the business an
additional funding request through the program. An example of this would be that a business
receives funding for start-up or renovation costs and after four years,upon expansion,relocation,
or creates additional jobs to the business;the business would be allowed to apply a second time
for funding.
DISCUSSION
Background
In early 2008 staff created a grant program to utilize previously allocated CDBG funding that
had not been spent down. The EDA developed tools that would help to strengthen the local
economy, so the program was centered on providing local business assistance. This program
was developed completely by the City and approved by the Dakota County Community
Development Authority(CDA). It is our grant to change if revisions are necessary. The primary
goals of the program to date are;
a) To retain local jobs within the City by encouraging existing businesses to relocate or
expand within the City of Farmington.
b) To create additional job opportunities within the City.
c) To support entrepreneurial growth within the City.
Under the CDBG funded Business Development Grant,there are three types of activities
allowed. The three activities(all being required within commercial or industrial zoning
districts)are explained below:
1) Business Expansion Grant- One time grant funding for a new(recently approved)or
existing Farmington business that is establishing a new business, expanding their current facility,
relocating to, or constructing a facility within the city limits.
2) Microenterprise Grant-Rental assistance for a period of one year to an owner of a
microenterprise business or a person choosing to develop a microenterprise business that will
occupy a currently vacant commercial or industrial space within the city limits.
3) Redevelopment Assistance- Redevelopment of EDA owned property. A mixed-use project
that includes commercial and residential and meets the national objective related to both job
creation and low/moderate income housing.
The first Business Development Grant was for a microenterprise grant for rental assistance to
Buds &Bytes, Inc. for$7,740. This grant was extended to the business for a full year at no more
than 75% of the total rent. Additional businesses received funds for the purchase of equipment:
Anna's Banana's Daycare,Vinge Tile& Stone,Farmington Truck Center, and Installed Building
Solutions (Ex. A). Baldy's BBQ, a new business in Farmington,has requested a grant for the
purchase of equipment as well.
BDG Funding-Recent Developments
As a reminder, on January 8, 2013,the Dakota County Board of Commissioners removed
$17,510 from the Farmington's Business Development Grant fund. At this time, staff is working
with the CDA to replenish the fund to include $30,820 from the CDA's FY2013 funding round.
Also,there may be opportunities to receive additional funding to this account.
Proposed Business Development Grant Revision
Staff has recently learned of existing businesses in the City that meet the guidelines of the BDG,
but cannot get further funding because the businesses have received a BDG in the past. The
current program states that a grant may be approved for a business as a"one time funding"
opportunity. Staff would like the EDA to consider a proposed revision to the BDG in this case.
Staff proposes a funding and time limit to the BDG to allow businesses an additional opportunity
to fund existing expansions or relocations in the City,which are common in growing businesses.
The proposal would allow a business to apply twice for funding after a four year period of
receiving the first CDBG funding approval.
Recently,businesses that have received CDBG funds have now relocated to new areas within the
City and need additional funding for them to prosper. In particular, an existing business that
proposed leaving the community because of the concern of Farmington's location near most of
its operations in the north metro made the decision to remain in Farmington and proceeded to
purchase a building to house their larger operations. In this case, funding for the BDG would
need to meet certain business assistance criteria including, for instance:
1. Business chooses to remain in Farmington instead of relocating outside of Farmington,
2. Business expands to larger property(i.e.,building, rental space,land),
3. Business meets a 50% increase in the number of employees added to the operations in
four years,
4. Business relocates to an existing building that is vacant,
5. Business creates an additional operation associated with expanded or relocated business.
The second funding opportunity for a business definitely focuses on the initial primary goals of
the program,including:
a) To retain local jobs within the City by encouraging existing businesses to relocate
or expand within the City of Farmington.
b) To create additional job opportunities within the City.
c) To support entrepreneurial growth within the City.
ACTION REQUIRED
Staff would like the EDA to consider the option of revising the"one time grant funding"
language in the Business Development Grant to allow a business to apply twice for funding after
a four year period of receiving the first CDBG funding approval. The EDA will be discussing
this consideration in upcoming EDA meetings. Please see attached Business Development Grant
in manual.
Respectfully sub , tted,
Lee Smick, City Planner
AICP, CNU-A
�o``�` i�► City of Farmington
430 Third Street
Farmington,Minnesota
651.280.6800•Fax 651.280.6899
AIWO www.ci.farmington.mn.us
TO: EDA Members
FROM: Lee Smick, AICP CNU-A
City Planner/Economic Development
SUBJECT: Review Proposed Economic Development Support Resolution
DATE: February 25,2013
INTRODUCTION/DISCUSSION
The draft of the Economic Development Support Resolution that I am preparing for the City Council for their
meeting on March 4, 2013 is attached. The message that I have proposed is for the "support of a dedicated
focus on economic development for Farmington City Government". In summation, I want the Mayor and
Council Members to focus on economic development when making decisions at the Dias.
ACTION REQUESTED
Provide comments on the Resolution.
Respectfully submitted,
a
Lee Smick, AICP CNU-A
City Planner
RESOLUTION NO. R -13
SUPPORTING ECONOMIC DEVELOPMENT AS A DEDICATED FOCUS OF
FARMINGTON CITY GOVERNMENT
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of
Farmington,Minnesota, was held in the Council Chambers of said City on the 4th day of March,
2013 at 7:00 P.M.
Members Present:
Members Absent:
Member introduced and Member seconded the following:
WHEREAS,the Mayor and City Council of the City of Farmington established a Housing and
Redevelopment Authority in 1974 with the power to undertake low/moderate housing,
redevelopment, and renewal activities, and
WHEREAS;the Mayor and City Council of the City of Farmington created an Economic
Development Authority in 2005 transferring all activities,programs, operations, and authority of
the existing City of Farmington Housing and Redevelopment Authority, and
WHEREAS,the Mayor and City Council of the City of Farmington charged the Economic
Development Authority with coordinating and administering economic development,
low/moderate housing, and redevelopment plans and programs of the City of Farmington, and
WHEREAS,the Farmington City Council encourages the financial support of economic
development in the City with the best interests of the health, safety,prosperity, and general
welfare of its citizens and businesses of the City of Farmington, and
WHEREAS,the Farmington City Council reaffirms its support of economic development
through acts of social responsibility and a dedication to building healthy,just, and competitive
communities, and
WHEREAS,the Farmington City Council agrees to a dedicated focus on economic development
when actions are required during City operations, and
NOW,THEREFORE, BE IT RESOLVED,that the Farmington City Council hereby supports
a dedicated focus on economic development in the City with the best interests of the health,
safety,prosperity, and general welfare of its citizens and businesses of the City.
This resolution adopted by recorded vote of the Farmington City Council in open session on the
4th day of March, 2013.
Mayor
Attested to the day of March, 2013.
City Administrator
SEAL
,off iy�� City of Farmington
3 Aid 430 Third Street
max Farmington,Minnesota
10 651.280.6800•Fax 651.280.6899
www.ci.farmington.mn.us
TO: EDA Members
FROM: Tony Wippler,Assistant City Planner
SUBJECT: Triton Properties,LLC—Commercial Rehabilitation Grant Agreement
DATE: February 25,2013
INTRODUCTION
The City's Economic Development Authority authorized the award of a Commercial Rehabilitation Grant to Trition
Properties, LLC on January 28, 2013. Grant funds were awarded to assist the property owner in eliminating conditions
that are detrimental to public health and safety, specifically, the removal of three (3) underground petroleum storage
tanks.
DISCUSSION
The City's Commercial Rehabilitation Grant Program is a program that provides assistance to property owners that make
eligible improvements to commercial properties to prevent deterioration of structures and encourages projects that correct
code violations. The total available balance in the Commercial Rehabilitation Grant program fund is$22,377.50.
Sajid Haque of Triton Properties, LLC has purchased and will be renovating the property at 705 8th Street from what is
currently a vacant gas station to a retail/office space. The property has been vacant since 2009 and has been neglected. It
has been determined a code deficiency by the appropriate staff and the property owner is required to remove the three(3)
existing underground storage tanks due to the proposed change of use,as they have been out of service for longer than one
year. All documentation required of the program has been received.
The Commercial Rehabilitation program requires for every $1 dollar of grant funds provided the applicant must provide
$1. Three competitive bids were received for the removal of the petroleum tanks and ranged from $13,044.75 to
$28,425.00. The applicant's preferred bid was submitted by All Phase Companies,Incorporated for$14,640.00.
ACTION REQUESTED
Provide a favorable recommendation to the City Council to award a Commercial Rehabilitation Grant to Triton Properties,
LLC and to execute the attached grant agreement for a total of$7,320 of Community Development Block Grant money.
Respectfully submitted,
Tony 1 ippler,Assistant City Planner
Cc: Sajid Haque
City of Farmington
Commercial Rehabilitation Grant Program
Grant Agreement
This agreement is made and entered into this_day of ,2013,by and between
Triton Properties,LLC,a Limited Liability Company,having its principal offices at 3121 39th
Avenue South,Minneapolis,Minnesota(hereinafter referred to as"Grantee")and the City of
Farmington,a public body corporate and politic,having its principal offices at 430 Third Street,
Farmington,Minnesota(hereinafter referred to as"Grantor").
WHEREAS,the Grantor is a Subrecipient of Dakota County Community Development Agency
in the County's Community Development Block Grant("CDBG")Program; and
WHEREAS,the Grantor has established a Commercial Rehabilitation Grant Program funded by
its entitlement of CDBG funds to assist businesses with the elimination of specific conditions
detrimental to public health and safety;and
WHEREAS,the Grantee shall match the total Grant amount received from the Grantor based
upon the expenditure of one dollar of Grantee funds for each one dollar of Grant funding; and
WHEREAS,the Grantee has applied for Commercial Rehabilitation Grant funds to convert the
building located at 705 8th Street,Farmington,Minnesota,from an vacant gas station/office space
to a retail space; and
WHEREAS,the Grantee has requested funding to assist with the removal of three(3)
underground petroleum storage tanks;and
WHEREAS,the Grantor has reviewed the Grantee's application and determined that the
proposed rehabilitation project eliminates specific conditions detrimental to public health and
safety.
NOW THEREFORE, in consideration of the Grant and the mutual covenants contained herein,
the parties agree as follows:
1. The Grantor agrees to provide a maximum of$7,320(seven thousand three hundred
twenty dollars)in CDBG funds to the Grantee for the removal of three(3)underground
petroleum storage tanks(the"Project")to eliminate conditions detrimental to public
health and safety.
2. The Grantee agrees to use the proceeds of the Grant solely for the removal of three(3)
underground petroleum storage tanks
3. The Grantee will provide the Grantor copies of the bids received for the Project prior to
the award of bids. Grantee must solicit at least three businesses and obtain two
competitive bids for all work to be done as part of the Project.
4. The Project shall be completed in a timely manner and all Grant funds must be used
within one year from the date of the grant agreement("End Date"). The End Date may
1
be extended beyond the original End Date up to one year,upon written approval of the
Grantor.
5. The Grantee will require all contractors to pay federal prevailing wages(Davis Bacon
Act)to employees working on the Project. The wage determination for this project is
General Decision Number: MN130034 02/01/2013 MN34(Attachment B)
6. The Grantee will require all contractors to submit weekly Davis Bacon payroll documents
to the Dakota County CDA(contact: Lisa Henning,Assistant Director of Community
and Economic Development). Such payroll documents must be approved by the Dakota
County CDA before reimbursement payments will be made to the Grantee.
7. Grant funds will be paid,on a reimbursement basis only after all improvements have been
completed according to the authorized scope of work and have been accepted by the
Grantor.
8: The grant agreement will be terminated 90 days from the date of this Agreement if
construction work has not yet begun.
9. The Grantee agrees not to relocate outside of the City of Farmington for a period of three
years after the date of this grant agreement.
10. The Grantee shall defend,indemnify,and hold harmless the officers and employees of
the Grantor and the Dakota County CDA from all liability and claims for damages arising
from bodily injury,death,property damage,sickness,disease,or loss and expense
resulting from or alleged to result from Grantee's operations under this Agreement.
11. The Grantee agrees to keep in force at all times during the term of this Agreement a
comprehensive general liability insurance policy covering any injury and/or property
damage caused by any negligent act or omission on the part of the Grantee,its agents,or
employees in the performance of or with relation to the work or services to be performed
or furnished by the Grantee under the terms of this Agreement in an amount of
$2,000,000.00. The Certificate of Insurance shall include the Grantor and Dakota County
CDA as certified holders by endorsement. The Grantee further agrees to maintain
worker's compensation coverage in accordance with state law. Certificates of Insurance
evidencing such insurance policies shall be provided to the Grantor prior to initiation of
the work under the Project activities covered by this Agreement and before any
reimbursement of grant funds is made.
12. The Grantee agrees to comply with all local,state,and federal equal employment
opportunity laws and ordinances as they pertain to unlawful discrimination on account of
race,color,creed,religion,national origin, sex,sexual or affectional orientation,marital
status,status with regard to public assistance,familial status,disability or age.
13. The Grantee agrees to comply with other Federal CDBG contract provisions as detailed
in Attachment A.
14. The Grantee agrees to comply with the Federal Labor Standard Provisions and Standard
Assurances as detailed in Attachment C and Attachment D.
2
15. Grantee agrees that if there occurs any breach in the terms of this agreement after
payment of CDBG funds that is not cured within 30 days or such longer period as may be
necessary after written notice from the Grantor to the Grantee of such breach,the Grantor
may take whatever action,including legal,equitable or administrative action,which may
appear necessary or desirable to the Grantor,to enforce performance and observance of
any obligation,agreement,or covenant of the Grantee under this Agreement. In addition,
upon said breach and the failure to cure said breach within 30 days or such longer period
as may be necessary after written notice from the Grantor to the Grantee of such breach,
the Grantor shall have the option to require the Grantee to reimburse the Grantor CDBG
funds,plus any expense incurred by the Grantor to include,but not necessarily be limited
to,administrative and legal expenses and any investment of CDBG funds.
IN WITNESS WHEREOF,the parties hereto have hereby executed this Agreement as of the year
and date above.
GRANTOR: GRANTEE:
CITY OF FARMINGTON TRITON PROPERTIES,LLC.
BY: BY: ` / , '.I 4 t_�,�--.---...
;-e. .ce. I V( ......._
ITS: ITS: _c4J 1 /M a �&
BY:
ITS:
BY:
ITS:
3
Attachment A-PROVISIONS FOR CDBG FUNDED CONTRACTS
I. SPECIAL EQUAL OPPORTUNITY PROVISIONS
A. Activities and Contracts Not Subject to Executive Order 11246,as Amended
(Applicable to Federally assisted construction contracts and related subcontracts of$10,000 and
under.)
During the performance of this contract,the contractor agrees as follows:
1. The Contractor shall not discriminate against any employee or applicant for employment
because of race, color,religion,sex, or national origin. The Contractor shall take affirmative
action to ensure that applicants for employment are employed,and that employees are treated
during employment,without regard to their race,color,religion,sex,or national origin. Such
action shall include, but not be limited to,the following: employment,upgrading, demotion,
or transfer;recruitment or recruitment advertising;layoff or termination;rates of pay or other
forms of compensation;and selection for training,including apprenticeship.
2. The Contractor shall post in conspicuous places, available to employees and applicants for
employment, notices setting forth the provisions of this non-discrimination clause. The
Contractor shall state that all qualified applicants will receive consideration for employment
without regard to race,color,religion,sex,or national origin.
3. Contractors shall incorporate the foregoing requirements in all subcontracts.
B. Executive Order 11245
(Applicable to Federally assisted contracts and related subcontracts of$10,000 and over.)
1. Section 202 Equal Opportunity Clause
During the performance of this contract,the contractor agrees as follows:
(A) The contractor will not discriminate against any employee or applicant for employment
because of race, color, religion, sex, or national origin. The contractor will take
affirmative action to ensure that applicants are employed, and that employees are treated
during employment, without regard to their race, color, religion, sex, or national origin.
Such action shall include, but not be limited to the following: employment, upgrading,
demotion, or transfer;recruitment,or recruitment advertising;layoff or termination,rates
of pay or other forms of compensation; and selection for training, including
apprenticeship. The contractor agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided setting forth the
provisions of this non-discrimination clause.
(B) The contractor will, in all solicitations or advertisements for employees placed by or on
behalf of the contractor, state that all qualified applicants will receive consideration
without regard to race,color,religion,sex,or national origin.
(C) The contractor will send to each labor union or representative of workers with which he
has a collective bargaining agreement or other contract or understanding, a notice
advising the said labor union or workers' representatives of the contractor's commitment
under this section, and shall post copies of the notice in conspicuous places available to
employees and applicants for employment.
(D) The contractor will comply with all provisions of Executive Order 11246 of September
24, 1965,and of the rules,regulations,and relevant orders of the Secretary of Labor.
(E) The contractor will furnish all information and reports required by Executive Order
11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of
Labor,or pursuant thereto, and will permit access to his books,records, and accounts by
the Department and the Secretary of Labor for purposes of investigation to ascertain
compliance with such rules,regulations,and others.
(F) In the event of the contractor's non-compliance with the non-discrimination clauses of
this contract or with any of the said rules, regulations, or orders, this contract may be
cancelled, terminated, or suspended in whole or in part and the contractor may be
4
declared ineligible in part and the contractor may be declared ineligible for further
Government contracts in accordance with procedures authorized in Executive Order
11246 of September 24, 1965, or by rule,regulation, or order of the Secretary of Labor,
or as otherwise provided by law.
(G) The contractor will include the provisions of the sentence immediately preceding
paragraph (A)and the provisions of paragraphs(A)through(G)in every subcontract
or purchase order unless exempted by rules, regulations, or orders of the Secretary of
Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965,
so that such provisions will be binding upon each subcontractor or vendor. The
contractor will take such action with respect to any subcontract or purchase order as the
Department may direct as a means of enforcing such provisions, including sanctions for
non-compliance. Provided,however,that in the event a contractor becomes involved in,
or is threatened with, litigation with a subcontractor or vendor as a result of such
direction by the Department, the contractor may request the United States to enter into
such litigation to protect the interest of the United States.
2. Notice of Requirement for Affirmative Action to Ensure Equal Employment Opportunity
(Executive Order 11246).
(A) The Offer's or Bidder's attention is called to the "Equal Opportunity Clause" and the
"Standard Federal Equal Employment Opportunity Construction Contract Specifications"
set forth herein.
(B) The goals and timetables for minority and female participation, expressed in percentage
terms for the Contractor's aggregate workforce in each trade on all construction work in
the covered area,are as follows:
Goals for Women/Minority Participation 5%Overall
Timetables: N/A
These goals are applicable to all the Contractor's construction work(whether or not it is
Federal or federally assisted) performed in the covered area. The Contractor's
compliance with the Executive Order and the regulations in 41 CFR Part 60-4 shall be
based on its'implementation of the Equal Opportunity Clause, specific affirmative action
obligations required by the specifications set forth in 41- CFR 60-4.3 (a), and its efforts
to meet the goals established for the geographical area where the contract resulting from
this solicitation is to be performed. The hours of minority and female employment and
training must be substantially uniform throughout the length of the contract, and in each
trade,and the contractor shall make a good faith effort to employ minorities and women
evenly on each of its projects. The transfer of minority or female employees or trainees
from Contractor to Contractor or from project to project for the sole purpose of meeting
the Contractor's goals shall be a violation of the contract, the Executive Order and the
regulations in 41 CFR Part 60-4. Compliance with the goals will be measured against the
total work hours performed.
(C) The Contractor shall provide written notification to the Director of the Office of Federal
Contract Compliance Programs within 10 working days of the award of any construction
subcontract in excess of$ 10,000 at any tier for construction work under the contract
resulting from this solicitation. The notification shall list the name, address and
telephone number of the subcontractor;employer identification number; estimated dollar
amount of the identification number; estimated dollar amount of the subcontract;
estimated starting and completion dates of the subcontract; and the geographical area in
which the contract is to be performed.
5
(D) As used in this Notice, and in the contract resulting form this solicitation, the "Covered
Area"is Dakota County,Minnesota.
3. Standard Federal Equal Employment Opportunity Construction Contract Specifications
(Executive Order 11246)
(A) As used in these specifications:
(1) "Covered area"means the geographical area described in the solicitation from which
this contract resulted;
(2) "Director"means Director,Office of Federal Contract Compliance Programs,United
States Department of Labor,or any person to whom the Director delegates authority;
(3) `Employer identification number" means the Federal Social Security number used
on the Employer's Quarterly Federal Tax Return , U.S. Treasury Department Form
941.
(4) "Minority"includes:
(a) Black(all persons having origins in any of the Black African racial groups not
of Hispanic origin);
(b) Hispanic (all persons of Mexican, Puerto Rican, Cuban, Central or South
American or other Spanish Culture or origin,regardless of race);
(c) Asian and Pacific Islander (all persons having origins in any of the original
peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific
Islands):and
(d) American Indian or Alaskan Native (all persons having origins in any of the
original peoples of North American and maintaining identifiable tribal
affiliations through membership and participation or community identification).
(B) Whenever the Contractor, or any subcontractor at any tier, subcontracts a portion of the
work involving any construction trade, it shall physically include in each subcontract in
excess of$10,000 the provisions of these specifications and the Notice which contains
the applicable goals for minority and female participation and which is set forth in the
solicitations from which this contract resulted.
(C) If the Contractor is participating (pursuant to 41 CFR 60-4.5) in a Hometown Plan
approved by the U.S. Department of Labor in the covered area either individually or
through an association, its affirmative action obligations on all work in the Plan area
(including goals and timetables) shall be in accordance with that for those trades which
have unions participating in the Plan. Contractors must be able to demonstrate their
participation in and compliance with the provisions of any such Hometown Plan. Each
Contractor or subcontractor participating in an approved Plan is individually required to
comply with its obligations under the EEO clause, and to make good faith effort to
achieve each goal under the Plan in each trade in which it has employees. The overall
good faith performance by other Contractors or Subcontractors toward a goal in an
approved Plan does not excuse any covered Contractor's or Subcontractor's failure to
take good faith efforts to achieve the Plan goals and timetables.
(D) The Contractor shall implement the specific affirmative action standards provided in
paragraphs (G)(1) through (16) of these specifications. The goals set forth in the
solicitation from which this contract resulted are expressed as percentages of the total
hours of employment and training of minority and female employees the Contractor
should reasonably be able to achieve in each construction trade in which it has employees
in the covered area. The Contractor is expected to make substantially uniform progress
toward its goals in each craft during the period specified.
(E) Neither the provisions of any collective bargaining agreement,nor the failure by a union
with whom the Contractor has a collective bargaining agreement, to refer either
minorities or women shall excuse the Contractor's obligations under these specifications,
Executive Order 11246,nor the regulations promulgated pursuant thereto.
(F) In order for the non-working training hours of apprentices and trainees to be counted in
meeting the goals, such apprentices and trainees must be counted in meeting the goals,
such apprentices and trainees must be employed by the Contractor during the training
period,and the Contractor must have made a commitment to employ the apprentices and
6
trainees at the completion of their training, subject to the availability of employment
opportunities. Trainees must be trained pursuant to training programs approved by the
U.S.Department of Labor.
(G) The Contractor shall take specific affirmative actions to ensure equal employment
opportunity. The evaluation of the Contractor's compliance with these specifications
shall be based upon its efforts to achieve maximum results from its actions. The
Contractor shall document these efforts fully, and shall implement affirmative action
steps at least as extensive as the following;
(1) Ensure and maintain a working environment free of harassment, intimidation, and
coercion at all sites, and in all facilities at which the Contractor's employees are
assigned to work. The Contractor shall specifically ensure that all foremen,
superintendents, and other on-site supervisory personnel are aware of and carry out
the Contractor's obligation to maintain such a working environment, with specific
attention to minority or female individuals working at such sites or in such facilities.
(2) Establish and maintain a current list of minority and female recruitment sources,
provide written notification to minority and female recruitment sources and to
community organizations when the Contractor or its unions have employment
opportunities available,and maintain a record of the organizations'responses.
(3) Maintain a current file of the names, addresses and telephone numbers of each
minority and female off-the-street applicant and minority or female referral from a
union,a recruitment source or community organization and of what action was taken
with respect to each such individual. If such individual was sent to the union hiring
hall for referral and was not referred back to the Contractor by the union or, if
referred, not employed by the Contractor, this shall be documented in the file with
the reason therefore,along with whatever additional actions the Contractor may have
taken.
(4) Provide immediate notification to the Director when the union or unions with which
the Contractor has a collective bargaining agreement has not referred to the
Contractor a minority person or woman sent by the Contractor, or when the
Contractor has other information that the union referral process has impeded the
Contractor's efforts to meet its obligations.
(5) Develop on-the-job training opportunities and/or participate in training programs for
the area which expressly include minorities and women, including upgrading
programs and apprenticeship needs, especially those programs funded or approved
by the Department of Labor. The Contractor shall provide notice of these programs
to the sources compiled under(G)(2)above.
(6) Disseminate the Contractor's EEO policy by providing notice of the policy to unions
and training programs and requesting their cooperation in assisting the Contractor in
meeting its EEO obligations; by including it in any policy manual and collective
bargaining agreement; by publicizing it in the company newspaper, annual report,
etc.; by specific review of the policy with all management personnel and with all
minority and female employees at lease once a year; and by posting the company
EEO policy on bulletin boards accessible to all employees at each location where
construction work is performed.
(7) Review, at least annually, the company's EEO policy and affirmative action
obligations under these specifications with all employees having any responsibility
for hiring, assignment, layoff, termination or other employment decisions including
specific review of these items with onsite supervisory personnel such as
Superintendents,General Foremen,etc.,prior to the initiation of construction work at
any job site. A written record shall be made and maintained identifying the time and
place of these meetings,persons attending, subject matter discussed, and disposition
of the subject matter.
(8) Disseminate the contractor's EEO policy externally be including it any advertising in
the news media, specifically including minority and female news media, and
providing written notification to and discussing the Contractor's EEO policy with
7
other Contractors and Subcontractors with whom the Contractor does or anticipates
doing business.
(9) Direct its recruitment efforts, both oral and written, to minority, female and
community organizations, to schools with minority and female students and to
minority and female recruitment and training organizations serving the Contractor's
recruitment area and employment needs. Not later than one month prior to the date
for the acceptance of applications for apprenticeship or other training by any
recruitment source, the Contractor shall send written notification to organizations
such as the above, describing the openings, screening procedures, and tests to be
used in the selection process.
(10)Encourage present minority and female employees to recruit other minority persons
and women and, where reasonable, provide after school, summer and vacation
employment to minority and female youths both on the site and in other areas of a
Contractor's work force.
(11)Validate all tests and other selection requirements where there is an obligation to do
so under 41 CFR part 60-3.
(12)Conduct, at least annually, an inventory and evaluation at least of all minority and
female personnel for promotional opportunities and encourage these employees to
seek or to prepare for,through appropriate training,etc.,such opportunities.
(13)Ensure that seniority practices, job classifications, work assignments and other
personnel practices,do not have a discriminatory effect by continually monitoring all
personnel and employment related activities to ensure that the EEO policy and the
Contractor's obligations under these specifications are being carried out.
(14)Ensure that all facilities and company activities are non-segregated except that
separate or single-user toilet and necessary changing facilities shall be provided to
assure privacy between the sexes.
(15)Document and maintain a record of all solicitations of offers for subcontracts from
minority and female construction contractors and suppliers, including circulation of
solicitations to minority and female contractor associations and other business
associations.
(16)Conduct a review,at least annually,of all supervisors' adherence to and performance
under the Contractor's EEO policies and affirmative action obligations.
(H) Contractors are encouraged to participate in voluntary associations which assist in
fulfilling one or more of their affirmative action obligations [(G)(1)through(16)]. The
efforts of a contractor association,joint contractor-union,contractor-community, or other
similar groups of which the contractor is a member and participant, may be asserted as
fulfilling any one or more of its obligations as enumerated above provided that the
Contractor actively participates in the group,makes every effort to assure that the group
has a positive impact on the employment of minorities and women in the industry,
ensures that the concrete benefits of the program are reflected in the Contractor's
minority and female workforce participation, makes a good faith effort to meet its
individual goals and timetables, and can provide access to documentation which
demonstrates the effectiveness of actions taken on behalf of the Contractor.
(I) A single goal for minorities and a separate single goal for women have been established.
The Contractor, however, is required to provide equal employment opportunity and to
take affirmative action for all minority groups, both male and female, and all women,
both minority and non-minority. Consequently,the Contractor may be in violation of the
Executive Order if a particular group is employed in a substantially disparate manner(for
example, even though the Contractor has achieved its goals for women generally, the
Contractor may be in violation of the Executive Order if a specific minority group of
women is underutilized).
(J) The Contractor shall not use the goals and timetables or affirmative action standards to
discriminate against any person because of race,color,religion,sex,or national origin.
(K) The Contractor shall not enter into any subcontract with any person or firm debarred from
Government contracts pursuant to Executive Order 11246.
8
(L) The Contractor shall carry out such sanctions and penalties for violation of these
specifications and of the Equal Opportunity Clause, including suspension, termination
and cancellation of existing subcontracts as may be imposed or ordered pursuant to
Executive Order 11246, as amended, and its implementing regulations, by the Office of
Federal Contract Compliance Programs. Any Contractor who fails to carry out such
sanctions and penalties shall be in violation of these specifications and Executive Order
11246,as amended.
(M)The Contractor, in fulfilling its obligations under these specifications, shall implement
specific affirmative action steps, at least as extensive as those standards prescribed in
paragraph(G) of these specifications, so as to achieve maximum results from its efforts
to ensure equal employment opportunity. If the Contractor fails to comply with the
requirements of the Executive Order, the implementing regulations, or these
specifications,the Director shall proceed in accordance with 41 CFR 60-4.8.
(N) The Contractor shall designate a responsible official to monitor all employment related
activity to ensure that the company EEO policy is being carried out, to submit reports
relating to the provisions hereof as may be required by the Government and to keep
records. Records shall at least include for each employee the name, address, telephone
numbers, construction trade, union affiliation if any, employee identification number
assigned, social security number, race, sex, status (e.g., mechanic, apprentice trainee,
helper, or laborer), dates of changes in status, hours worked per week in the indicated
trade, rate of pay, and locations at which the work was performed. Records shall be
maintained in an easily understandable and retrievable form;however,to the degree that
existing records satisfy this requirement, contractors shall not be required to maintain
separate records.
(0) Nothing herein provided shall be constructed as a limitation upon the application of other
laws which establish different standards of compliance or upon the application of
requirements for the hiring of local or other area residents (e.g., those under the Public
Works Employment Act of 1977 and the Community Development Block Grant
Program).
4. Segregated Facilities
The Contractor or Subcontractor will not maintain any facility which is provided for their
employees in a segregated manner or permit their employees to perform their services at any
location under their control where segregated facilities are maintained except that separate or
single user toilet and necessary changing facilities shall be provided to assure privacy between
the sexes.
C. Section 503 Handicapped—Affirmative Action for Handicapped Workers
(Applicable to Federally assisted contracts and related subcontracts if$2,500 or over.)
1. The Contractor will not discriminate against any employee or applicant for employment
because of physical or mental handicap in regard to any position for which the employee or
applicant for employment is qualified. The Contractor agrees to take affirmative action to
employ, advance in employment and otherwise treat qualified handicapped individuals
without discrimination based upon their physical or mental handicap in all employment
practices such as the following: employment, upgrading, demotion or transfer, recruitment,
advertising, layoff or termination,rates of pay or other forms of compensation, and selection
for training,including apprenticeship.
2. The Contractor agrees to comply with the rules, regulations, and relevant orders of the
Secretary of Labor issued pursuant to the Act.
3. In the event of the Contractor's noncompliance with the requirements of this clause, actions
for noncompliance may be taken in accordance with the rules,regulations,and relevant orders
of the Secretary of Labor issued pursuant to the Act.
4. The Contractor agrees to post in conspicuous places, available to employees and applicants
for employment, notices in a form to be prescribed by the Director, provided by or through
the contracting officer. Such notices shall state the Contractor's obligation under the law to
9
take affirmative action to employ and advance in employment qualified handicapped
employees and applicants for employment,and the rights of applicants and employees.
5. The Contractor shall notify each labor union or representative of workers with which it has a
collective bargaining agreement or other contract understanding,that the Contractor is bound
by the terms of Section 503 of the Rehabilitation Act of 1973, and is committed to take
affirmative action to employ and advance in employment physically and mentally
handicapped individuals.
6. The Contractor will include the provisions of this clause in every subcontract or purchase
order of$ 2,500 or more unless exempted by rules, regulations, or orders of the Secretary
issued pursuant to Section 503 of the Act, so that such provisions will be binding upon each
subcontractor or vendor. The Contractor will take such action with respect to any subcontract
or purchase order as the Director of the Office of Federal Contract Compliance Programs may
direct to enforce such provisions,including action for non-compliance.
D. Section 402 Veterans of the Vietnam Era
(Applicable to Federally assisted contracts and related subcontracts of$10,000 or over.)
1. Affirmative Action for Disabled for Disabled Veterans and Veterans of the Vietnam Era
(A) The Contractor will not discriminate against any employee or applicant for employment
because he or she is a disabled veteran or veteran of the Vietnam Era in regard to any
position for which the employee or applicant for employment is qualified. The
Contractor agrees to take affirmative action to employ, advance in employment and
otherwise treat qualified disabled veterans and veterans of the Vietnam Era without
discrimination based upon their disability or veteran status in all employment practices
such as the following: employment upgrading, demotion or transfer, recruitment,
advertising, layoff or termination, rates of pay or other forms of compensation, and
selection for training,including apprenticeship.
(B) The Contractor agrees that all suitable employment openings of the Contractor which
exist at the time of the execution of this contract and those which occur during the
performance of this contract,including those not generated by this contract and including
those occurring at an establishment of the Contractor other than the one wherein the
contract is being performed but excluding those of independently operated corporate
affiliates, shall be listed at an appropriate local office of the State employment service
system wherein the opening occurs. The Contractor further agrees to provide such
reports to such local office regarding employment openings and hires as may be required.
State and local government agencies holding Federal contracts of$10,000 or more shall
also list all their suitable openings with the appropriate office of the State employment
service,but are not required to provide those reports set forth in paragraphs(D)and(E).
(C) Listing of employment openings with the employment service system pursuant to this
clause shall be made at least concurrently with the use of any other recruitment source or
effort and shall involve the normal obligations which attach to the placing of a bona fide
job order, including the acceptance of referrals for veterans and non-veterans. This
listing of employment openings does not require the hiring of any particular job applicant
or from any particular group of job applicants, and nothing herein is intended to relieve
the Contractor from any requirements in Executive Orders or regulations regarding non-
discrimination in employment.
(D) The reports required by paragraph(B)of this clause shall include, but not be limited to,
periodic reports which shall be filed at lease quarterly with the appropriate local office or,
where the Contractor has more than on hiring location in a State,with the central office
of the State employment service. Such reports shall indicate for each hiring location(1)
the number of individuals hired during the reporting period, (2) the number of non-
disabled veterans of the Vietnam era hired, (3) the number of disabled veterans of the
Vietnam era hired, and (4) the total number of disabled veterans hired. The reports
should include covered veterans hired for on-the-job training under 38 U.S.C. 1787. The
Contractor shall submit a report within 30 days after the end of each reporting period
wherein any performance is made on this contract identifying data for each hiring
10
•
location. The Contractor shall maintain at each hiring location copies of the reports
submitted until the expiration of one year after final payment under the contract, during
which these reports and related documentation shall be made available,upon request,for
examination by any authorized representatives of the contracting officer or of the
Secretary of Labor. Documentation would include personnel records respecting job
openings,recruitment and placement.
(E) Whenever the Contractor becomes contractually bound to the listing provisions of this
clause, it shall advise the employment service system in each State where it has
establishments of the name and location of each hiring location in the State. As long as
the Contractor is contractually bound to these provisions and has so advised the State
system, there is no need to advise the State system when it is no longer bound by this
contract clause.
(F) This clause does not apply to the listing of employment openings which occur and are
filled outside the 50 states,the District of Columbia, Puerto Rico, Guam and the Virgin
Islands.
(G) The provision of paragraphs(B),(C),(D),and(E)of this clause do not apply to openings
which the Contractor proposes to fill from within his own organization or to fill pursuant
to a customary and traditional employer-union hiring arrangement. This exclusion does
not apply to a particular opening once an employer decides to consider applicants outside
of his own organization or employer-union arrangement for that opening.
(H) As used in this clause:
(1) "All suitable employment openings" includes, but is not limited to openings which
occur in the following job categories: Production and non-production; plan and
office; laborers and mechanics; supervisory and non-supervisory; technical; and
executive administrative,and professional openings that are compensated on a salary
basis of less than $ 25,000 per year. This term includes full time employment,
temporary employment of more than 3 days duration, and part-time employment. It
does not include openings which the contractor proposes to fill from within his own
organization or to fill pursuant to a customary and traditional employer-union hiring
arrangement or openings in an educational institution which are restricted to students
of that institution. Under the most compelling circumstances an employment
opening may not be suitable for listing,including such situations where the needs of
the Government cannot reasonably be otherwise supplied, where listing would be
contrary to national security,or where the requirement of listing would otherwise not
be in the best interest of the Government.
(2) "Appropriate office of the State employment service system"means the local office
of the Federal-State national system of public employment offices with assigned
responsibility for serving the areas where the employment opening is to be filled,
including the District of Columbia,Guam,Puerto Rico,and the Virgin Islands.
(3) "Openings which the Contractor proposes to fill from within his own organization"
means employment openings for which no consideration will be given to persons
outside the Contractor's organization (including any affiliates, subsidiaries, and the
parent companies) and includes any openings which the Contractor proposes to fill
from regularly established"recall"lists.
(4) "Openings which the Contractor proposes to fill pursuant to a customary and
traditional employer-union hiring arrangement" means employment openings which
the Contractor proposes to fill from union halls, which is part of the customary and
traditional hiring relationship which exists between the Contractor and
representatives of his employees.
(I) The Contractor agrees to comply with the rules, regulations, and relevant orders of the
Secretary of Labor issued pursuant to the act.
(J) In the event of the Contractor's non-compliance with the requirements of this clause,
actions for non-compliance may be taken in accordance with the rules, regulations, and
relevant orders of the Secretary of Labor issued pursuant to the act.
(K) The Contractor agrees to post in conspicuous places, available to employees and
applicants for employment,notices in a form to be prescribed by the Director,provided
11
by or through the contracting officer. Such notice shall state the Contractor's obligation
under the law to take affirmative action to employ and advance in employment qualified
disabled veterans and veterans of the Vietnam era, and the rights of applicants and
employees.
(L) The Contractor will notify each labor union or representative of workers with which it
has a collective bargaining agreement or other contract understanding,that the contractor
is bound by the terms of the Vietnam Era Veterans Readjustment Assistance Act, and is
committed to take affirmative action to employ and advance in employment qualified
disabled veterans and veterans of the Vietnam Era.
(1VI)The Contractor will include the provisions of this clause in every subcontract or purchase
order of$ 10,000 or more unless exempted by rules,regulation,or orders of the Secretary
issued pursuant to the Act, so that such provisions will be binding upon each
subcontractor or vendor. The Contractor will take such action with respect to any
subcontract or purchase order as the Director of the Office of Federal Contract
Compliance Programs may direct to enforce such provisions, including action for
noncompliance.
E. Section 109 of the Housing and Community Development Act of 1974.
No person in the United States shall on the grounds of race, color, national origin, or sex be
excluded from participation in,be denied the benefits of, or be subjected to discrimination under
any program or activity funded in whole or in part with funds made available under this title.
F. "Section 3"Compliance in the Provision of Trainin_g,Employment and Business Opportunities
1. 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 U.S.C. 1701u. Section 3 requires that to the
greatest extent feasible opportunities for training and employment be given lower income
residents of the project area 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.
2. The parties to this contract will comply with the provisions of said Section 3 and the
regulations issued pursuant thereto by the Secretary of Housing and Urban Development set
forth in 24 CFR, Part 135 and all applicable rules and orders of the Department issued there
under 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.
3. 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 labor organization of 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.
4. 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 a violation of regulations issued by the Secretary of Housing and Urban
Development,24 CFR Part 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 Part 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.
5. Compliance with the provisions of Section 3,the regulations set forth in 24 CFR Part 135,and
all applicable rules and orders of the Department issued hereunder 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
12
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 by 24 CFR Part 135.
IL CERTIFICATION OF COMPLIANCE WITH AIR AND WATER ACTS
(Applicable to Federally assisted construction contracts and related subcontracts exceeding$100,000)
A. During the performance of this contract,the Contractor and all subcontractors shall comply with
the requirements of the Clean Air Act,as amended,42 USC 1251 et seq.,and the regulations of
the Environmental Protection Agency with respect thereto,at 40 CFR Part 15,as amended.
B. In addition to the foregoing requirements,all non-exempt contractors and subcontractors shall
furnish to the owner,the following:
1. A stipulation by the Contractor or subcontractors, that any facility to be utilized in the
performance of any non-exempt contract or subcontract, is not listed on the list of Violating
Facilities issued by the Environmental Protection Agency(EPA)pursuant to 40 CFR 15.20.
2. Agreement by the Contractor to comply with all the requirements of Section 114 of the Clean
Air Act, as amended (42 USC 1857c-8) and Section 308 of the Federal Water Pollution
Control Act,as amended,(33 USC 1318)relating to inspection,monitoring,entry,reports and
information, as well as all other requirements specified in said Section 114 and Section 308,
and all regulations and guidelines issued thereunder.
3. A stipulation that as a condition for the award of the contract,prompt notice will be given of
any notification received from the Director, Office of Federal Activities,EPA,indicating that
a facility utilized, or to be utilized for the contract, is under consideration to be listed on the
EPA List of Violating Facilities.
4. Agreement by the Contractor that he will include, or cause to be included, the criteria and
requirements in paragraph(1)through(4)of this section in every non-exempt subcontract and
requiring that the Contractor will take such action as the Government may direct as a means
of enforcing such provisions.
Hi CERTIFICATION FOR CONTRACTS,GRANTS,LOANS,AND COOPERATIVE
AGREEMENTS
The undersigned certifies to the best of his or her knowledge and belief,that:
A. No Federally appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or employee of
any agency, a Member of Congress, an officer or employee of Congress in connection with the
awarding of any Federal Contract, the making of any Federal grant, the making of any Federal
loan, the entering into of any cooperative agreement, and the extension, continuation, renewal,
amendment,or modification of any Federal contract,grant,loan,or cooperative agreement.
B. If any funds other than Federally appropriated funds have been paid or will be paid or will be paid
to any person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the
undersigned shall complete and submit Standard Form —LLL, "Disclosure Form to Report
Lobbying,"in accordance with its instructions.
C. The undersigned shall require that the language of this certification be included in the award
documents for all sub-awards at all tiers (including subcontract, sub-grant, and contracts under
grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose
accordingly.
D. This certification is a material representation of fact upon which reliance was placed when this
transaction was made or entered into. Submission of this certification is a pre-requisite for making
or entering into this transaction imposed by Section 1332, Title 31,U.S. Code. Any person who
fails to file the required certification shall be subject to a civil penalty of not less than$10,000 and
not more than$100,000 for each such failure.
13
Attachment B—WAGE DETERMINATION(MN130034 02/01/2013)
Page 1 of 7
General Decision Number: MN130034 02/01/2013 MN34
Superseded General Decision Number: MN20120034
State: Minnesota
Construction Type: Building
County: Dakota County in Minnesota.
BUILDING CONSTRUCTION PROJECTS (does not include single family
homes or apartments up to and including 4 stories) .
Modification Number Publication Date
0 01/04/2013
1 01/25/2013
2 02/01/2013
ASBE0034-009 06/04/2012
Rates Fringes
ASBESTOS WORKER/HEAT & FROST
INSULATOR (Includes
application of all insulating
materials, protective
coverings, coatings &
finishes to all types of
mechanical systems) $ 41.17 18.59
BOIL0647-007 01/01/2012
Rates Fringes
BOILERMAKER $ 31.72 24 .40
BRMN0001-049 05/01/2011
Rates Fringes
TILE SETTER $ 28.89 17.09
BRMN0008-013 05/01/2010
Rates Fringes
BRICKLAYER $ 33.30 14.74
CARP0087-015 05/01/2009
Rates Fringes
CARPENTER (Including
Acoustical Installation,
Drywall Hanging & Form Work) $ 31.79 16.10
CARP0190-010 06/01/2009
Rates Fringes
LATHER $ 33.04 14.87
2/20/2013
Page 2 of 7
ELEC0110-013 03/01/2009
Rates Fringes
ELECTRICIAN (Low Voltage,
including wiring for Alarms)
Installer $ 21.68 10.48+a,b
Technician (Installation
of Controller) $ 30.98 12.18+a,b
FOOTNOTES:
a. 1 year service - 5 days paid vacation; 2 years service -
10 days paid vacation; 5 years service - 12 days paid
vacation; 7 years service - 14 days paid vacation; 9 years
service - 16 days paid vacation; 11 years service - 18 days
paid vacation; 12 years service - 20 days paid vacation
b. 8 Paid Holidays: New Year's Day; Memorial Day; 4th of
July; Labor Day; Thanksgiving Day; Day after Thanksgiving;
the normal work day preceding Christmas Day; & Christmas Day
* ELEC0110-014 07/16/2012
Rates Fringes
ELECTRICIAN $ 35.79 23.92
ELEV0009-002 01/01/2012
Rates Fringes
ELEVATOR MECHANIC $ 43.21 23.535
FOOTNOTE:
PAID VACATION: Employer contributes 8% of regular hourly
rate as vacation pay credit for employees with more than 5
years of service, and 6% for 6 months to 5 years of service.
PAID HOLIDAYS: New Years Day, Memorial Day, Independence Day,
Labor Day, Veterans Day, Thanksgiving Day, Friday after
Thanksgiving, and Christmas Day.
ENGI0049-042 05/01/2012
Rates Fringes
OPERATOR: Power Equipment
GROUP 1 $ 35.19 15.95
GROUP 2 $ 34.85 15.95
GROUP 3 $ 33.44 15.95
GROUP 4 $ 33.10 15.95
GROUP 5 $ 32.93 15.95
GROUP 6 $ 31.42 15.95
GROUP 7 $ 30.30 15.95
GROUP 8 $ 28.29 15.95
POWER EQUIPMENT OPERATOR CLASSIFICATIONS
GROUP 1: Truck & Crawler Crane with 200' of Boom & Over,
including Jib ($.50 premium with 300' of Boom & over,
including jib) ; & Tower Crane 250' & Over.
GROUP 2: Truck & Crawler Crane with 150' of Boom, up to but
2/20/2013
Page 3 of 7
not including 200' of Boom, including Jib; & Tower Crane
200' & Over.
GROUP 3: Traveling Tower Crane; Truck & Crawler Crane, up to
but not including 150' of Boom, including Jib; Tower Crane
(Stationary) up to 200' ; All-Terrain Vehicle Crane, Boom
Truck over 100 ft, Dragline.
GROUP 4: Backhoe/Track/Trackhoe, Hoist (3 drums or more) ;
Overhead Crane (inside building perimeter) , Excavator.
GROUP 5: Asphalt Spreader, Bulldozer, Curb Machine, Drill,
Forklift, Compressor 450 CFM or over (2 or more machines) ;
Boom Truck up to 100 ft, Loader over 1 cu yd, Hoist (1 or
2 drums) ; Mechanic, Milling Machine, Roller, Scraper,
Tractor over D2.
GROUP 6: Bobcat/Skid Loader, Loader up to 1 cu. yd. , Tractor
D2 or similar size.
GROUP 7: Compressor 600 CFM or over, Crane Oiler, Self
Propelled Vibrating Packer.
GROUP 8: Oiler, Greaser (Tractor/Truck) .
IRON0512-002 05/01/2012
Rates Fringes
IRONWORKER, ORNAMENTAL,
REINFORCING, AND STRUCTURAL $ 34.15 21.20
LAB00132-006 03/04/2011
Rates Fringes
LABORER (ASBESTOS ABATEMENT)
Removal from Floors, Walls
& Ceilings $ 29.43 12.75
LAB00132-023 05/01/2011
Rates Fringes
LABORER
Group 1 $ 30.06 13.33
Group 2 $ 30.56 13.33
LABORERS CLASSIFICATIONS
GROUP 1 - Common or General Laborer, Asphalt Raker, Asphalt
Shoveler, Carpenter Tender, Concrete Saw, Form Stripping,
Mason Tender (Brick, Cement/Concrete) , Plaster Tender,
Scaffold Builder (Brick and Masonry) , Top Person, Vibrating
Plate
GROUP 2 - Pipelayer, Bottom Person
PAIN0061-007 05/01/2012
Rates Fringes
Drywall
2/20/2013
Page 4 of 7
Finisher/Taper $ 31.89 16.95
Sander $ 23.92 16.95
PAINTER
Brush, Roller $ 30.89 17.76
Spray $ 31.64 17.76
PAIN1324-006 06/01/2012
Rates Fringes
GLAZIER $ 35.69 13.95
PLAS0265-005 06/01/2011
Rates Fringes
PLASTERER $ 28.94 19.58
PLAS0633-054 05/01/2012
Rates Fringes
CEMENT MASON/CONCRETE FINISHER $ 32.39 16.60
PLUM0034-011 06/01/2012
Rates Fringes
PLUMBER (Excluding HVAC Pipe
Installation) $ 39.99 20.81
FOOTNOTE:
Paid Holiday: Labor Day
PLUM0417-003 01/01/2013
Rates Fringes
SPRINKLER FITTER (Fire) $ 39.53 21.00
FOOTNOTE:
Paid Holidays: Memorial Day; July 4th; Friday before Labor
Day; Labor Day; Columbus Day; & Thanksgiving Day
PLUM0455-012 05/01/2012
Rates Fringes
PIPEFITTER $ 39.70 23.09
ROOF0096-022 05/01/2011
Rates Fringes
ROOFER $ 34.14 14.60
FOOTNOTE: Paid Holiday - Labor Day
SHEE0010-052 05/01/2009
Rates Fringes
SHEET METAL WORKER (Including
2/20/2013
Page 5 of 7
HVAC Duct and System
Installation) $ 38.46 18.34
FOOTNOTE: Paid Holiday: Labor Day
SUMN2009-043 07/27/2009
Rates Fringes
INSTALLER - SIGN $ 20.32 5.05
LABORER: Landscape $ 12.88 4.61
TEAM0346-005 05/01/2012
Rates Fringes
TRUCK DRIVER
2-Axle Dump Truck $ 25.30 11.85
3-Axle Dump Truck $ 25.55 11.85
TRUCK DRIVER CLASSIFICATIONS
GROUP 1: Boom Truck
GROUP 2: Ready Mix, Tractor Trailor
GROUP 3: Fork Lift, Mechanic, Tandem or 3 axle truck
GROUP 4: Dumpman, Farm Tractor, Single or 2 axle Truck
WELDERS - Receive rate prescribed for craft performing
operation to which welding is incidental.
Unlisted classifications needed for work not included within
the scope of the classifications listed may be added after
award only as provided in the labor standards contract clauses
(29CFR 5.5 (a) (1) (ii) ) .
The body of each wage determination lists the classification
and wage rates that have been found to be prevailing for the
cited type(s) of construction in the area covered by the wage
determination. The classifications are listed in alphabetical
order of "identifiers" that indicate whether the particular
rate is union or non-union.
Union Identifiers
An identifier enclosed in dotted lines beginning with
characters other than "SU" denotes that the union
classification and rate have found to be prevailing for that
classification. Example: PLUM0198-005 07/01/2011. The first
four letters , PLUM, indicate the international union and the
four-digit number, 0198, that follows indicates the local union
2/20/2013
Page 6 of 7
number or district council number where applicable , i.e.,
Plumbers Local 0198. The next number, 005 in the example, is
an internal number used in processing the wage determination.
The date, 07/01/2011, following these characters is the
effective date of the most current negotiated rate/collective
bargaining agreement which would be July 1, 2011 in the above
example.
Union prevailing wage rates will be updated to reflect any
changes in the collective bargaining agreements governing the
rates.
0000/9999: weighted union wage rates will be published annually
each January.
Non-Union Identifiers
Classifications listed under an "SU" identifier were derived
from survey data by computing average rates and are not union
rates; however, the data used in computing these rates may
include both union and non-union data. Example: SULA2004-007
5/13/2010. SU indicates the rates are not union majority rates,
LA indicates the State of Louisiana; 2004 is the year of the
survey; and 007 is an internal number used in producing the
wage determination. A 1993 or later date, 5/13/2010, indicates
the classifications and rates under that identifier were issued
as a General Wage Determination on that date.
Survey wage rates will remain in effect and will not change
until a new survey is conducted.
WAGE DETERMINATION APPEALS PROCESS
1. ) Has there been an initial decision in the matter? This can
be:
* an existing published wage determination
* a survey underlying a wage determination
* a Wage and Hour Division letter setting forth a position on
a wage determination matter
* a conformance (additional classification and rate) ruling
On survey related matters, initial contact, including requests
for summaries of surveys, should be with the Wage and Hour
Regional Office for the area in which the survey was conducted
because those Regional Offices have responsibility for the
Davis-Bacon survey program. If the response from this initial
contact is not satisfactory, then the process described in 2.)
and 3. ) should be followed.
With regard to any other matter not yet ripe for the formal
process described here, initial contact should be with the
Branch of Construction Wage Determinations. Write to:
Branch of Construction Wage Determinations
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.
2/20/2013
Page 7 of 7
Washington, DC 20210
2. ) If the answer to the question in 1. ) is yes, then an
interested party (those affected by the action) can request
review and reconsideration from the Wage and Hour Administrator
(See 29 CFR Part 1.8 and 29 CFR Part 7) . Write to:
Wage and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
The request should be accompanied by a full statement of the
interested party's position and by any information (wage
payment data, project description, area practice material,
etc.) that the requestor considers relevant to the issue.
3.) If the decision of the Administrator is not favorable, an
interested party may appeal directly to the Administrative
Review Board (formerly the Wage Appeals Board) . Write to:
Administrative Review Board
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
4.) All decisions by the Administrative Review Board are final.
END OF GENERAL DECISION
2/20/2013
Attachment C—FEDERAL LABOR STANDARD PROVISIONS
•
Federal Labor Standards Provisions u.S.Department of Housing
and Urban Development
Office of Labor Relations
•
Applicability (1) The work to be performed by the classification
The Project or Program to which the construction work requested is not performed by a classification in the wage
covered by this contract pertains is being assisted by the determination;and
United States of America and the following Federal Labor (2) The classification Is utilized In the area by the
Standards Provisions are included in this Contract construction industry; and
pursuant to the provisions applicable to such Federal (3) The proposed wage rate, including any bona fide
assistance. fringe benefits, bears a reasonable relationship to the
A. 1. (i) Minimum Wages. All laborers and mechanics wage rates contained in the wage determination.
employed or working upon the site of the work, will be paid (b) If the contractor and the laborers and mechanics to be
unconditionally and not less often than once a week, and employed in the classification (if known), or their
without subsequent deduction or rebate on any account representatives, and HUD or its designee agree on the
(except such payroll deductions as are permitted by classification and wage rate (including the amount
regulations issued by the Secretary of Labor under the designated for fringe benefits where appropriate), a report
Copeland Act (29 CFR Part 3), the full amount of wages of the action taken shall be sent by HUD or its designee to
and bona fide fringe benefits (or cash equivalents thereof) the Administrator of the wage and Hour Division,
due at time of payment computed at rates not less than Employment Standards Administration, U.S. Department of
those contained in the wage determination of the Labor, Washington, D.C. 20210. The Administrator, or an
Secretary of Labor which Is attached hereto and made a authorized representative, will approve, modify, or
part hereof, regardless of any contractual relationship disapprove every additional classification action within 30
which may be alleged to exist between the contractor and days of receipt and so advise HUD or its designee or will
such laborers and mechanics. Contributions made or notify HUD or its designee within the 30-day period that
costs reasonably anticipated for bona fide fringe benefits additional time is necessary. (Approved by the Office of
under Section I(b)(2) of the Davis-Bacon Act on behalf of Management and Budget under OMB control number 1215-
laborers or mechanics are considered wages paid to such 0140.)
laborers or mechanics, subject to the provisions of 29 CFR (c) In the event the contractor, the laborers or mechanics
5.5(a)(1)(iv); also, regular contributions made or costs to be employed in the classification or their
incurred for more than a weekly period (but not less often
than quarterly) under plans, funds, or programs, which representatives, and HUD or its designee do not agree on
cover the particular weekly period, are deemed to be the proposed classification and wage rate (including the
constructively made or incurred during such weekly period. amount designated for fringe benefits, where appropriate),
HUD or its designee shall refer the questions, including
Such laborers and mechanics shall be paid the appropriate the views of all Interested parties and the recommendation
wage rate and fringe benefits on the wage determination of HUD or Its designee, to the Administrator for
for the classification of work actually performed, without determination. The Administrator, or an authorized
regard to skill, except as provided in 29 CFR 5.5(a)(4). representative, will issue a determination within 30 days of
Laborers or mechanics performing work In more than one receipt and so advise HUD or its designee or will notify
classification may be compensated at'the rate specified for HUD or its designee within the 30-day period that
each classification for the time actually worked therein: additional time is necessary. (Approved by the Office of
Provided, That the employer's payroll records accurately Management and Budget under OMB Control Number
set forth the time spent In each classification in which 1215-0140.)
•
work is performed. The wage determination (including any (d) The wage rate (including fringe benefits where
additional classification and wage rates conformed under appropriate) determined pursuant to subparagraphs
29 CFR 5.5(a)(1)(Ii) and the Davis-Bacon poster (WH-
1321) shall be posted at all times by the contractor and its (1)(i1)(b) or (c) of this paragraph, shall be paid to all
subcontractors at the site of the work In a prominent and workers performing work in the classification under this
accessible, place where it can be easily seen by the contract from the first day on which work is performed in
workers. the classification.
(It) (a) Any class of laborers or mechanics which is not (ii)) Whenever the minimum wage rate prescribed In the
listed in the wage determination and which is to be contract for a class of laborers or mechanics includes a
employed under the contract shall be classified in fringe benefit which is not expressed as an hourly rate, the
conformance with the wage determination. HUD shall contractor shall either pay the benefit as stated in the
approve an additional classification and wage rate and wage determination or shall pay another bona fide fringe
fringe benefits therefor only when the following criteria benefit or an hourly cash equivalent thereof.
have been met: (Iv) If the contractor does not make payments to a trustee
or other third person, the contractor may consider as part
tm•
form HUD-4010(0542009)
Previous editions are obsolete Page 1 of 5 ref.Handbook 1344.1
•
•
of the wages of any laborer or mechanic the amount of any ' communicated in writing to the laborers or mechanics
costs reasonably anticipated in providing bona fide fringe affected, and records which show the costs anticipated or
benefits under a plan or program, Provided, That the the actual cost Incurred in providing such benefits.
Secretary of Labor has found, upon the written request of Contractors employing apprentices or trainees under
the contractor, that the applicable standards of the Davis- approved programs shall maintain written evidence of the
• Bacon Act have been met. The Secretary of Labor may registration of apprenticeship programs and certification of
require the contractor to set aside in a separate account trainee programs, the registration of the apprentices and
assets for the meeting of obligations under the plan or trainees, and the ratios and wage rates prescribed to the
program. (Approved by the Office of Management and applicable programs. (Approved by the Office of
Budget under OMB Control Number 1215-0140.) Management and Budget under OMB Control Numbers
2. Withholding. HUD or its designee shall upon its own 1215-0140 and 1215-0017.)
action or upon written request of an authorized (Ii) (a) The contractor shall submit weekly for each week
representative of the Department of Labor withhold or in which any contract work is performed a copy of all
cause to be withheld from the contractor under this payrolls to HUD or its designee if the agency is a party to
contract or any other Federal contract with the same prime the contract, but if the agency is not such a party, the
contractor, or any other Federally-assisted contract contractor will submit the payrolls to the applicant
subject to Davis-Bacon prevailing wage requirements, sponsor, or owner, as the case.,may be, for transmission to
which is held by the same prime contractor so much of the HUD or its designee. The payrolls submitted shall set out
accrued payments or advances as may be considered ' accurately and completely all of the information required
necessary to pay laborers and mechanics, including to be maintained under 29 CFR 5.5(a)(3)(I) except that full
apprentices, trainees and helpers, employed by the social security numbers and home addresses shall not be
contractor or any subcontractor the full amount of wages Included on weekly transmittals. instead the payrolls shall
required by the contract in the event of failure to pay any only need to include an individually identifying number for
laborer or mechanic, including any apprentice, trainee or each employee (e.g., the last four digits of the employee's
helper, employed or working on the site of the work, all or social security number). The required weekly payroll
part of the wages required by the contract, HUD or its information may be submitted in any form desired.
designee may, after written notice to the contractor, Optional Form WH-347 is available for this purpose from
sponsor, applicant, or owner, take such action as may be the Wage and Hour Division Web site at
necessary to cause the suspension of any further - /rttn://www.dot.vov/esa/whd/forms/wh3471nstr.htm or its
payment, advance, or guarantee of funds until such successor site. The prime contractor is responsible for
violations have ceased. HUD or its designee may, after the submission of copies of payrolls by all subcontractors.
written notice to the contractor, disburse such amounts Contractors and subcontractors shall maintain the full
withheld for and on account of the contractor or social security number and current address of each
subcontractor to the respective employees to whom they covered worker, and shall provide them upon request to
are due. The Comptroller General shall make such HUD or its designee if the agency is a party to the
disbursements in the case of direct Davis-Bacon Act contract, but if the agency is not such a party, the
contracts. contractor will submit the payrolls to the applicant
3. (I) Payrolls and basic records. Payrolls and basic sponsor,or owner, as the case may be,for transmission to
records relating thereto shall be maintained by the HUD or its designee, the contractor, or the Wage and Hour
contractor during the course of the work preserved for a Division of the Department of Labor for purposes of an
period of three years thereafter for all laborers and investigation or audit of compliance with prevailing wage
mechanics working at the site of the work. Such records requirements. It is not a violation of this subparagraph for
shall contain the name, address, and social security a prime contractor to require a subcontractor to provide
number of each such worker, his or her correct addresses and social security numbers to the prime
classification, hourly rates of wages paid (including rates contractor for Its own records, without weekly submission
of contributions or costs anticipated for bona fide fringe to HUD or its designee. (Approved by the Office of
benefits or cash equivalents thereof of the types described• Management and Budget under OMB Control Number
In Section I(b)(2)(B) of the Davis-bacon Act), daily and 1215-0149.)
weekly number of hours worked, deductions made and (b) Each payroll submitted shall be accompanied by a
actual wages paid. Whenever the Secretary of Labor has °Statement of Compliance," signed by the contractor or
found under 29 CFR 5.6 (a)(1)(Iv) that the wages of any subcontractor or his or her agent who pays or supervises
laborer or mechanic include the amount of any costs the payment of the persons employed under the contract
reasonably anticipated in providing benefits under a plan and shall certify the following:
or program described in Section 1(b)(2)(B) of the Davis- (1) That the payroll for the payroll period contains the
'Bacon Act, the contractor shall maintain records which information required to be provided under 29 CFR 6.5
show:that the commitment to provide such benefits is (a)(3)(i1), the appropriate information is being maintained
enforceable, that the plan or program is itnancially under 29 CFR 5.6(a)(3)(i),:,"Sind that such information Is
responsible. and that the plan or program has been correct and complete; .
Previous editions are obsolete form HUD-4010(0012009)
Page 2 of 5 ref.Handbook 1344.1
(2) That each laborer or mechanic(Including each helper, is not registered or otherwise employed as stated above,
apprentice, and trainee) employed on the contract during ' shall be paid not less than the applicable wage rate on the
the payroll period has been paid the full weekly wages wage determination for the classification of work actually
earned, without rebate, either directly or indirectly, and performed. In addition,any apprentice performing work on
that no deductions have been made either directly or the job site in excess of the ratio permitted under the
Indirectly from the full wages earned, .other than registered program shall be paid not less than the
permissible deductions as set forth in 29 CFR Part 3; applicable wage rate on the wage determination for the
(3) That each laborer or mechanic has been paid not less work actually performed. Where a contractor is performing
than the applicable wage rates and fringe benefits or cash construction on a project in a locality other than that in
equivalents for the classification of work performed, as which its program is registered, the ratios and wage rates
specified in the applicable •wage determination (expressed in percentages of the journeyman's hourly
incorporated into the contract. rate) specified in the contractor's or subcontractor's
registered program shall be observed. Every apprentice
(c) The weekly submission of a properly executed
must be paid at not less than the rate specified in the
certification set forth on the reverse side of Optional Form
registered program for the apprentice's level of progress,
WH-347 shall satisfy the requirement for submission of the
'Statement of Compliance° required by subparagraph expressed as a percentage of the journeymen hourly rate
A.3.(ii)(b). specified in the appiicabjs wage determination.
Apprentices shall be paid fringe benefits in accordance
(d) The falsification of any of the above certifications may with the provisions of the apprenticeship program. If the
subject the contractor or subcontractor to civil or criminal apprenticeship program does not specify fringe benefits,
prosecution under Section 1001 of Title 18 and Section apprentices must be paid the full amount of fringe benefits
231 of Title 31 of the United States Code. listed on the wage determination for the applicable
' (III) The contractor or subcontractor shall make the classification. If the Administrator determines that a
records required under subparagraph A.3.(I) available for different practice prevails for the applicable apprentice
inspection, copying, or transcription by authorized classification, fringes shall be paid In accordance with that
representatives of HUD or its designee or the Department determination. In the event the Office of Apprenticeship
of Labor, and shall permit such representatives to Training, Employer and Labor Services, or a State
interview employees during working hours on the Job. If Apprenticeship Agency recognized by the Office,
the contractor or subcontractor fails to submit the required withdraws approval of an apprenticeship program, the
records or to make them available, HUD or its designee contractor will no longer- be permitted' to utilize
may. after written notice to the contractor, sponsor, apprentices at less than the applicable predetermined rate
applicant or owner, take such action as may be necessary for the work performed until an acceptable program is
to cause the suspension of any further payment, advance, approved.
or guarantee of funds. Furthermore, failure to submit the (9) Trainees. Except as provided in 29 CFR 5.16,
required records upon request or to make such records trainees will not be permitted to work at less than the
available may be grounds for debarment action pursuant to predetermined rate for the work performed unless they are
29 CFR 5.12. employed pursuant ',to and individually registered in a
4. Apprentices and Trainees. program which has received prior approval, evidenced by
(I) Apprentices. Apprentices will be permitted to work at formal certification by the U.S. Department of Labor,
less than the predetermined rate for the work they Employment and Training Administration. The ratio of
performed when they are employed pursuant to and trainees to journeymen on the job site shall not be greater
individually registered in a bona fide apprenticeship than permitted under the plan approved by the
program registered with the U.S. Department of Labor, Employment and Training Administration. Every trainee
Employment and Training Administration, Office of must be paid at not less than the rate specified in the
Apprenticeship Training, Employer and Labor Services, or approved program for the trainee's level of progress,
with a State Apprenticeship Agency recognized by the expressed as a percentage of the journeyman hourly rate
Office, or if a person is employed in his or her first 90 specified In the applicable wage determination. Trainees
days of probationary employment as an apprentice in such shall be paid cringe benefits in accordance with the
an apprenticeship program, who is not individually provisions of the trainee program. If the trainee program
registered In the program, but who has been certified by does.not mention fringe benefits, trainees shall be paid
the Office of Apprenticeship Training, Employer and Labor the full amount of fringe benefits listed on the wage
Services or a State Apprenticeship Agency (where determination unless the Administrator of the Wage and
appropriate) to be eligible for probationary employment as Hour Division determines that there Is an apprenticeship
an apprentice. The allowable ratio of apprentices to program associated with the corresponding journeyman
'journeymen on the job site in any craft classification shall wage rate on the wage determination which provides for
not be'greater than the ratio permitted to the contractor as less than full fringe benefits for apprentices. Any
employee listed on the payro
to the entire work force under the registered program. Any l at a trainee rate who is not
worker listed on a payroll at an apprentice wage rate, who registered and participating i'rr'a training plan approved by
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Page 3 of 5 ref.Handbook 1344.1
the Employment and Training Administration shall be paid awarded HUD contracts or participate in HUD programs
not less than the applicable wage rate on the wage pursuant to 24 CFR Part 24.
determination for the work actually performed. In addition, (ii) No part of this contract shall be subcontracted to any
any trainee performing work on the job site in excess of person or firm ineligible for award of a Government
the ratio permitted under the registered program shall be contract by virtue of Section 3(a) of the Davis-Bacon Act
paid not less than the applicable wage rate on the wage or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or
determination for the work actually performed. In the participate In HUD programs pursuant to 24 CFR Part 24.
event the Employment and Training Administration (Iii) The penalty for making false statements is prescribed
withdraws approval of a training program, the contractor in the U.S. Criminal Code, 18 U.S.C. 1001. Additionally,
will no longer be permitted to utilize trainees at less than U.S. Criminal Code, Section 1 01 0, Title 18, U.S.C.,
the applicable predetermined rate for the work performed
"Federal Housing Administration transactions', provides in
until an acceptable program is approved.
part: 'Whoever, for the purpose of . . . influencing In any
(ill) Equal employment opportunity. The utilization of way the action of such Administration .makes, utters or
apprentices, trainees and journeymen under 29 CFR Part 5 publishes any statement knowing the same to be false •
shall be in conformity with the equal employment shall be fined not more than $5,000 or imprisoned not
opportunity requirements of Executive Order 11248, as more than two years, or both."
amended, and 29 CFR Part 30. 11. Complaints, Proceedings, or Testimony by
5. Compliance with Copeland Act requirements. The Employees. No laborer or mechanic to whom the wage,
contractor shall comply with the requirements of 29 CFR salary, or other labor standards provisions of this Contract
Part 3 which are incorporated by reference in this contract are applicable shall be discharged or in any other manner
6. Subcontracts. The contractor or subcontractor will discriminated against by the Contractor or any
Insert in any subcontracts the clauses contained In subcontractor because such employee has filed any
subparagraphs 1 through 11 in this paragraph A and such complaint or instituted or caused to be instituted any
other clauses as HUD or its designee may by appropriate proceeding or has testified or Is about to testify in any
instructions require, and a copy of the applicable proceeding under or relating to the labor standards
prevailing wage decision, and also a clause requiring the applicable under this Contract to his employer.
subcontractors to include these clauses in any tower tier B. Contract Work Hours and Safety Standards Act The
subcontracts. The prime contractor shall be responsible provisions of this paragraph B are applicable where the amount of the
for the compliance by any subcontractor or lower tier prime contract exceeds $100,000. As used in this paragraph, the
subcontractor with all the contract clauses In this terms laborers'and'mechanics'include watchmen and guards.
paragraph. (1) Overtime requirements. No contractor or subcontractor
7. Contract termination; debarment. A breach of the contracting for any part of the contract work which may require or
contract clauses in 29 CFR 5.5 may be grounds for involve the employment of laborers or mechanics shall require or
termination of the contract and for debarment as a permit any such laborer or mechanic in any workweek in which the
contractor and a subcontractor as provided in 29 CFR individual is employed on such work to work In excess of 40 hours in
5.12. such workweek unless such laborer or mechanic receives
8. Compliance with Davis-Bacon and Related Act Requirements. compensation at a rate not less than one and one-half times the basic
All rulings and Interpretations of the Davis-Bacon and rate of pay for all hours worked in excess of 40 hours in such
Related Acts contained in 29 CFR Parts 1, 3, and 5 are workweek. •
herein incorporated by reference in this contract (2) Violation; liability for unpaid wages; liquidated
9. Disputes concerning labor standards. Disputes damages. In the event of any violation of the clause set
arising out of the labor standards provisions of this forth in subparagraph (1) of this paragraph, the contractor
contract shall not be subject to the general disputes and any subcontractor responsible therefor shall be liable
clause of this contract. Such disputes shall be resolved In for the unpaid wages. In addition, such contractor and
accordance with the procedures of the Department of subcontractor shall be liable to the United States (in the
Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes case of work done under contract for the District of
within the meaning of this clause include disputes between Columbia or a territory, to such District or to such
the contractor (or any of its subcontractors) and HUD or territory), for liquidated damages. Such liquidated
its designee, the U.S. Department of Labor, or the damages shall be computed with respect to each Individual
employees or their representatives. laborer or mechanic, including watchmen and guards,
10. (I) Certification of Eligibility. By entering into this employed in violation of the clause set forth in
contract the contractor certifies that neither it (nor he or subparagraph (1) of this paragraph, In the sum of$10 for each
she) nor any person or firm who has an interest in the calendar day on which such individual was required or permitted to
contractor's firm is a person or firm ineligible to be work in excess of the standard workweek of 40 hours without payment
awarded Government contracts by virtue of Section 3(a) of of the overtime wages required by the clause set forth in sub
the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be paragraph(1) of this paragraph.
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Page 4 of 5 ref.Handbook 1344.1
(3) Withholding for unpaid wages and liquidated
damages. HUD or its designee shall upon its own action
or upon written request of an authorized representative of
the Department of Labor withhold or cause to be withheld,
from any moneys payable on account of work performed by
the contractor or subcontractor under any such contract or
any other Federal contract with the same prime contract,
or any other Federally-assisted contract subject to the
Contract Work Hours and Safety Standards Act which is
held by the same prime contractor such sums as may be
determined to be necessary to satisfy any liabilities of •
such contractor or subcontractor for unpaid wages and
liquidated damages as provided in the clause set forth in
subparagraph (2)of this paragraph.
(4) Subcontracts. The contractor or subcontractor shall
insert in any subcontracts the clauses set forth in
subparagraph (1) through (4) of this paragraph and also a
clause requiring the subcontractors to include these
clauses in any lower tier subcontracts. The prime
contractor shall be responsible for compliance by any
subcontractor or lower tier subcontractor with the clauses
set forth in subparagraphs (1) through (4) of this
paragraph.
• C. Health and Safety. The provisions of this paragraph C are
applicable where the amount of the prime contract exceeds 6100,000.
(1) No laborer or mechanic shall be required to work in
surroundings or under working conditions which are
unsanitary, hazardous, or dangerous to his health and
safety as determined under construction safety and health
standards promulgated by the Secretary of Labor by
regulation.
(2) The Contractor shall comply with all regulations
issued by the Secretary of Labor pursuant to Title 29 Part
1926 and failure to comply may result In imposition of
sanctions pursuant to the Contract Work Hours and Safety
Standards Act, (Public Law 91-54, 83 Stat 96). 40 USC
3701 at sea.
(3) The contractor shall include the provisions of this
paragraph in every subcontract so that such provisions will
be binding on each subcontractor. The contractor shall •
take such action with respect to any subcontractor as the
Secretary of Housing•and Urban Development or the
Secretary of Labor shall direct as a means of enforcing
such provisions.
•
•
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Page 5 of 5 ref.Handbook 1344.1
Attachment D—STANDARD ASSURANCES
Revised 10/7/99
STANDARD ASSURANCES
1. NON-DISCRIMINATION. During the performance of this Contract, the Contractor shall not unlawfully discriminate
against any employee or applicant for employment because of race,color,creed,religion,sex,national origin,disability,sexual orientation,age,
marital status or public assistance status. The Contractor will take affirmative action to ensure that applicants are employed and that employees
are treated during employment without unlawful discrimination because of their race,color,creed,religion,sex,national origin,disability,sexual
orientation,age,marital status or public assistance status. Such action shall include,but not be limited to the following: employment upgrading,
demotion,or transfer;recruitment or recruitment advertising;layoff or termination;rates of pay or other forms of compensation;and selection for
training,including apprenticeship. The Contractor agrees to post in conspicuous places,available to employees and applicants for employment,
notices which set forth the provisions of this nondiscrimination clause.
The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of Contractor, state that all qualified
applicants will receive consideration for employment without regard to race, creed, color, religion, sex, national origin, disability, sexual
orientation,age,marital status,or public assistance status.
No funds received under this Contract shall be used to provide religious or sectarian training or services.
The Contractor shall comply with any applicable federal or state law regarding non-discrimination. The following list includes,but is not
meant to limit,laws which may be applicable:
A. The Equal Employment Opportunity Act of 1972. as amended, 42 U.S.C. §2000e g §A. which prohibits discrimination in
employment because of race,color,religion,sex or national origin.
B. Executive Order 11246,as amended,which is incorporated herein by reference, and prohibits discrimination by U.S. Government
contractors and subcontractors because of race,color,religion,sex or national origin.
C. The Rehabilitation Act of 1973,as amended,29 U.S.C. §701 eta .and 45 C.F.R.84.3(J)and(K)implementing Sec.504 of the
Act which prohibits discrimination against qualified handicapped persons in the access to or participation in federally-funded services or
employment.
D. The Age Discrimination in Employment Act of 1967,29 U.S.C.§621 et da as amended,and Minn.Stat§181.81,which generally
prohibit discrimination because of age.
E. The Equal Pay Act of 963,as amended,§29 U.S.C. §206,which provides that an employer may not discriminate on the basis of
sex by paying employees of different sexes differently for the same work.
F. Minn.Stet.Ch.363,as amended,which generally prohibits discrimination because of race,color,creed,religion,national origin,sex,
marital status,status with regard to public assistance,disability,sexual orientation or age.
G. Minn. Stat §181.59 which prohibits discrimination against any person by reason of race, creed, or color in any state or political
subdivision contract for materials,supplies or construction. Violation of this section is a misdemeanor and any second or subsequent violation of
these terms may be cause for forfeiture of all sums due under the Contract.
H. Americans with Disabilities Act of 1990,42 U.S.C. §§12101 through 12213,47 U.S.C. §§225,611,with regulations at 29 C.F.R.
§1630,which prohibits discrimination against qualified individuals on the basis of a disability in term,condition or privilege of employment
2. DATA PRIVACY. For purposes of this Contract all data created,collected,received,stored,used,maintained,or disseminated by
Contractor in the performance of this Contract is subject to the requirements of the Minnesota Government Data Practices Act, Minn. Stat
Chapter 13 and the Minnesota Rules implementing the Act now in force or hereafter adopted as well as the Federal laws on data privacy,and
Contractor must comply with those requirements as if it were a governmental entity. The remedies in section 13.08 apply to the Contractor.
Contractor does not have a duty to provide access to public data to the public if the public data are available from the governmental agency
(CDA), except as required by the terms of this Contract All subcontracts shall contain the same or similar data practices compliance
requirements.
3. RECORDS DISCLOSURE/RETENTION. Contractor's bonds,records,documents,papers,accounting procedures and practices,
and other evidences relevant to this Contract are subject to the examination, duplication, transcription and audit by the CDA and either the
Legislative or State Auditor,pursuant to Minn.Stat.§16C.05,subd.5. Such evidences are also subject to review by the Comptroller General of
the United States, or a duly authorized representative, if federal fluids are used for any work under this Contract The Contractor agrees to
maintain such evidences for a period of six(6)years from the date services or payment were last provided or made or longer if any audit in
progress requires a longer retention period.
4. WORKER HEALTH., SAFETY AND TRAINING. Contractor shall be solely responsible for the health and safety of its
employees in connection with the work performed under this Contract Contractor shall make arrangements to ensure the health and safety of all
subcontractors and other persons who may perform work in connection with this Contract Contractor shall ensure all personnel of Contractor
and subcontractors are properly trained and supervised and,when applicable,duly licensed or certified appropriate to the tasks engaged in under
this Contract Each Contractor shall comply with federal, state and local occupational safety and health standards, regulations and rules
promulgated pursuant to the Occupational Health and Safety Act which are applicable to the work to be performed by Contractor.