Res 699 4/10/1967RESOLUTION NO.
WHEREAS, the City of Wichita Falls, Texas, organized
and existing under and by virtue of the laws of the State
of Texas (herein called the "Applicant "), has heretofore
submitted an application to the United States of America,
acting by and through the Secretary of Housing and Urban
Development (herein called the "Government "), for a grant
under Section 702 of the Housing and Urban Development Act
of 1965, for the purposes designated in the said application;
and,
WHEREAS, the Government has approved the said appli-
cation subject to certain conditions and has submitted to
the Applicant a certain Grant Agreement dated as of March
24, 1967 (herein called the "Grant Agreement "), for approval
and execution by the Applicant, which said Grant Agreement
is satisfactory.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN
OF THE APPLICANT THAT
The said Grant Agreement, a copy of which is attached
hereto, be and the same is hereby approved. The Mayor is
hereby authorized and directed to execute the said Grant Agree-
ment in the name and on behalf of the Applicant, in as many
counterparts as may be necessary, and the City Clerk is hereby
authorized and directed to affix or impress the official seal
of the Applicant thereon and to attest the same. The proper
officer is directed to forward the said executed counterparts
of the said Grant Agreement to the Government, together with
such other documents evidencing the approval and authorization
to execute the same as may be required by the Government.
PASSED AND APPROVED this the 10th day of April, 1967.
A T T E S T:
City Clerk
HUD 41471
(5 -66)
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
GRANT AGREEMENT
(Water and Sewer Facilities Grant Program)
Name of Applicant: Project No. WS -5 -44 -0063
Pp The City of Wichita Falls, Texas
Address: Wichita Fall
Federal Contract No. H- 502 -4835
s, Texas
THIS GRANT AGREEMENT dated as of March 74 1967 by and between no C'.-i t- z () f
Wichita Falls, Texas (herein called the
'Applicant "), and the United States of America, Secretary of Housing and Urban Development (herein called the
"Government"):
NOW, THEREFORE, THIS AGREEMENTWITNESSETH:
That for and in consideration of the mutual promises hereinafter contained, the parties hereto do convenant and
agree as follows:
Section 3. Amount and Purpose. Subject to the Terms and Conditions (Form HUD -41420 dated Maur, 1�6b )
attached hereto and made a part hereof as Attachment A, and the provisions of this Agreement, the Government will
make a Grant to the applicant in an amount not to exceed $ 1500,000 —or-5.0— percent of the Eligible Project Cost
as determined by the Government on completion of the Project, whichever is the lesser, in order to aid in financing the
Project hereinafter defined, presently estimated to cost $ 3, 512,700 .
Section 2. Description of the Project. The project shall consist of the ,@- a raaii -ater
transmission line and pumping station for transfer of wgtPr frn-m T akP Ar - -a�
to the City (herein called the "Project")
Section 3. Government Field Expense. The amount of the fixed fee for Government Field expense referred to in
Sectian 33 of the attached Terms and Conditions shall be $?,_500
Section 4. Reduction in Grant. The Government shall have the right to reduce the amount of the Grant upon giving
the Applicant written notice, if the Eligible Project Cost after award of construction contract is determined by the
Government to be less than the estimated cost upon which the stipulated amount of the Grant was based.
Section 5. Special Conditions. The Government's obligation to make the Grant is also subject to the Special
Conditions attached hereto and made a part hereof as Attachment�B .
IN WITNESS WHEREOF, this Agreement has been executed in the name and on behalf of Thp („j _;3r --
of Wichita Falls
by the undersigned official, and under
its official seal, attested by its City Clerk /
and in the name and on behalf of the United States of America, Secretary of Housing and Urban Development, by the
undersigned official.
(SEA 1..)
ATTEST:
iegrnature)
City Clerk
(Type Name and Title)
THE CITY OF WICHITA,—)FALLS,, TEXAS
-4 By
(Si nature)
Mayo:
(Type Name and Title)
UNITED STATES OF AMERICA
Secretary of Housing and Urban
Development
By
Assistant Regional. Administrator
Title for Metropolitan Development
Region V FlO.nu- tv:,,r.ingion, C.
BUD a 320
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (5.66)
Attachment "Alt
TERMS AND COND171ONS
Constituting Part of the Grant Agreement Providing for the
Financing and Construction of Water or Sewer Facilities
Under Title VII of the Housing and Urban Development Act
of 1965, Public Law 89 -117, August 10, 1965.
Section 1. Definitions.— As used in these Terms and Conditions;
"Government" means the United States of America.
"Project" means the Water or Sewer Facilities covered by the Grant Agreement.
"Grant Agreement" means the contract between the Government and the Applicant
covering the Project and includes both these Terms and Conditions and other
contract instruments.
"Applicant" means the public entity or entities designated in the Grant Agreement.
"Project Cost" means the cost of construction work for the project, cost of neces-
sary architectural /engineering services, legal, administrative and clerical
costs, cost of land acquisition, necessary travel expenses, interest during
construction, and other necessary miscellaneous expenses.
"Eligible project Cost" means the cost of construction, of land acquired for the
project, and of site improvements, all as determined by the Government.
"Depository Bank" means a bank or trust company which is a member of the Federal
Deposit Insurance Corporation.
"Project Site" means any of the land; rights -or -way, easements, or other interests
in land acquired by the Applicant in connection with the development of the site.
Section 2. Prerequisites to Government's Oblir ations. -- »The Government shall be under no
obligation to disburse funds under the Grant Agreement if:
(a) Representations. - -Any representation made by the Applicant to the Government in
connection with the application, shall be incorrect or incomplete in any material re-
spect, or the Government determines that the Applicant has failed to proceed promptly
with Project financing or construction;
(b) Concurrence by Government. - -The Applicant, having submitted to the Government the
documents mentioned in Section 16 hereof, shall have proceeded without having been
advised by the Government that the same are satisfactory; it being the purpose of this
provision to insure that no action will be taken in the development of the project which
would result in legal or contractual violation rendering it impossible for the Govern-
ment to make the grant hereunder or for the parties to accomplish the objects of the
Agreement;
(c) Prohibited Interests. ---If any official or the Applicant who is authorized in such capacity
and on behalf of the Applicant to negotiate, make, accept or approve, or to tale any
part in negotiating, making, accepting or approving any architectural, engineering,
inspection, construction, materials, supply, or equipment contract or any subcontract
in connection with the construction of the project, small become directly or indirectly
interested personally in any such contract or subcontract, or if any official, employee,
architect, attorney, engineer or inspector of or for the Applicant who is autha-rized in
such capacity and on behalf of the Applicant to exercise any legislative, executive,
supervisory or other functions in connection with the construction of the project, shall
become directly or .indirectly interested personally in any construction, materials,
supply, equipment or insurance contract, in any subcontract or any other contract
pertaining to the project.
Section 3. Applicant's ;funds. -- -The Applicant shall initiate and prosecute to completion all
proceedings necessary to enable the Applicant to provide its share of the Project Cost on or
prior to the time that such funds are needed to meet project costs.
Section 4. Legal Matters.- -The Applicant shall take all actions necessary to enable it to fi-
nance, construct, and develop the project in due time, form and manner as required by law and
the Grant Agreement.
Section 5. Project Site. ---The project shall be located on lands or the requisite interest therein
of the Applicant; such lands and interest when acquired subsequent to the date of the Grant
Agreement shall be acquired in accordance with the land acquisition policy requirements set
forth in Sections 6 through 9 hereinafter. The Applicant shall comply with the provisions of
Title IV, of the Housing and Urban Development Act of 1965 (P.L. 89 -117) and regulations and
requirements of the Government thereunder which establish certain policies and provide for
specific payments in connection with the acquisition by eminent domain of the real property
necessary for the project.
Section 6. Negotiated Purchase.- -The Applicant covenants and agrees that it will male every
reasonable effort to acquire each parcel of or interest in land constituting part of the Project
Site by negotiated purchase. Applicant shall (1) directly or through its agents, make a diligent,
conscientious effort to induce the owner to accept a fair and proper price for such property and,
if such effort is unsuccessful, make a final offer to the owner in writing. Such offer shall include:
(1) an invitation to discuss the acquisition of his property with the applicant; (2) afford a reason-
able period of time for the owner to consider the offer; and (3) include a notification of the date
on which the applicant intends to institute eminent domain proceedings if agreement cannot be
reached for a negotiated purchase within the time specified.
Section 7. Payment for Real Property.- -The Applicant covenants and agrees that it will not
require the owner to surrender possession of any parcel of or interest in land constituting part
of the Project Site until it has paid to the owner (1) the agreed purchase price 4rrived at by nego-
tzadon, 6J� (2) iri any case whole 6h y the aa=nt of payment to the owns -z is, in dispute, not if�ss
than 75 percent of the appraised fair value of the property as approved by the applicant. Such
requirement for 75 percent payment may be satisfied either by direct payment to the owner or
by deposit in court of such amount, provided such deposit may be paid over to the owner without
prejudice to his right to obtain a judicial determination of the value of the property. A tender of
payment to the owner, whether or not accepted by the owner, shall be regarded as payment.
Section 8. Notice to Surrender Possession. - -The Applicant covenants and agrees that no person
lawfully occupying property constituting part of the Project Site shall be required to surrender
possession on account thereof without at least ninety days' written notice of the date on which
construction or development is scheduled to begin. Such notice shall be given to all persons law-
fully occupying such property including owners conveying, title pursuant to a negotiated sale.
Such notice shall not be given until the applicant has the legal right to possession of the prop-
erty.
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Section 9. Records of Igegoriarions.W -The Applicant covenants and agrees that it will maintain
complete and accurate records of all negotiations and other actions affecting acquisition of any
property in connection with the Project and such records shall be available for inspections by
representatives of the Government. Such records shall be maintained in one place for a period
of at least three years following completion of construction of the Project.
Section 10. Disbursement of Grant Funds for Land Acquisition. -- -The Applicant may requisition
disbursements on account of grant provided in the Agreement for acquisition of land at any tinic
after receipt of the Agreement as needed to enable the Applicant to make payment as required
under Section S above, provided (1) no impediment exists which would preveilt carrying ;orward
of the Project, and (2) the Applicant has affirm and binding cc- mmitment for its share oz the Proj-
ect costs, and (3) the cost of the land so acquired is acceptable to the Government. In the evert
the Project for any reason is subsequently abandoned, the Applicant covenants and agrees that it
will repay any funds disbursed hereunder.
Section 11. Grant Disbursements. -. -The Applicant may requisition disbursements on account of
the grant provided in the Agreement at any time. Such requisitions shall be accompanied by such
supporting data as the Government may require. The Government shall honor, subject to the
provisions of the Agreement, such requisitions in amounts and at times deemed by it to be proper
to insure the expeditious prosecution and payment to the costs of the Project. No request for
review of a determination of the Government affecting the grant payable under the Agreement
will be considered unless such request is received by the Government not later than, three month
following notice to the Applicant of such determination, in no event shall the total azncunt of grant
funds disbursed to pay land and construction costs exceed 90 percent of the grant amount speci-
fied in the Agreement for such costs until after the Project has been completed and audited, and
the final grant amount determined by the Government.
Section 12. Prerequisites to Disbursements.- -Prior to the Government disbursing any portion
of the grant except as provided otherwise in Section 10 above, the Applicant shall present satis-
factory evidence that;
(a) It has obtained, or can obtain, all !and, rights -of -way, easements, permits, franchises,
Federal, State, County, and municipal approvals required in connection with the con-
struction and operation of the Project, including approval of the final plans and speci-
fications by the appropriate State authorities;
(b) It has Clan fund'q or a fiTiln and binding c0aiini ftmant to 1?�'Ovida its ol,laro of tla� Pajoa
Cost;
(c) It has deposited into the Construction Account, in addition to the grant proceeds, any
portion then available of the funds to be furnished by the Applicant to meet its share of
the Project Cost and that it will promptly deposit any remaining portion of its share of
the Project Cost in order that all payments in connection with the Project can be made
as the same become due;
(d) The Project can be completed at a total cost satisfactory to the Government which will
be within the amount of funds available- therefor; and
(e) It is able to provide or obtain the provision of all necessary building or household con-
nections and local collection or distribution laterals as determined by the Government
from sources other than grant funds hereunder.
Sectiolt 13. C OIISMIC—EiOn Account. - -Tho Applicant shell sett up in a Depository Bank, or with the
fiscat agency of the .Applicant used by law, a separate account or accounts (horein collectively
called the "Construction Account ") into which shall be deposited any Lomporary loans, Govern -
inont grants, and tho additional funds required by the provisions of the Grant Agreement to be
furnished by the Applicant in order to assure the payment of all Project Costs. Moneys in the
Construction Account shall be expended only for such purposes as shall have been previously
specified in the Project Cost estimates approved by the Government. The Applicant shall 1pay all
Project Costs from the Construction Account.
Moneys in the Construction Account shall be secured by the Depository 3&n'-'c in the manner ,w a-
scribed by Statutes relating to the securin of pt:blic funds. Where the moneys on deposit in the
Construction Account exceed the estimated disnursements on account of the Prc)ject ;or the neat
40 days, the Applicant may direct the Deposito -y Ban',,- to invest such e:;ce s funds In L lied
obligations of, or obligations the principal of and interest on w_aich are guarantied by, the —zed
States Government, which shall mature not later than 18 months after, the date oz such investiner.t
and which shall be subject to redemption at any time by the holder thereof. The earnings from
any such investments shall be deposited in the Construction Account by the Applicant.
After completion of construction and payment of all costs of the project, any balance in tie Con-
struction Account shall remain therein pending determination by the Government of the total
Project Cost and the grant. Such balance shall be used to refund promptly to the Government any
overpayment made with respect to the ;rant; any amount thereafter remaining shall be available
for disposition by the Applicant in accordance with its other contractual agreements, applicable
State or local law or other governing conditions.
Section 14. Prompt Procedure - Economic Construction. -- -The Applicant covenants and agrees
that it will proceed promptly with all matters necessary to the financing and the development of
the Project; and that the Project will be undertaken and developed in such manner that economy
will be promoted in such development and in the construction work.
Section 15. Approvals and Permits.--The Applicant shall obtain approvals and permits required
by law as a condition precedent to the acquisition, construction, development, and operation of
the Project.
Section 16. Submission of Proceedings, Contract and Other Documents. --The Applicant shall
..
submit to the Government such data, reports, records and documents relating to the financing,
construction, and operation of the project as the Government may require. Approval Of the
GOVOrmnlent must be obtained prior to 01C assl nssx;nc Of any illtere�;t in 0r. 13a3:t of any contract
relating to the Project.
Section 17. Construction by Contract. --All wont on the Project shall be done under contract and
every opportunity shall be given for free, open and competitive bidding for each and every con-
struction, material, and equipment contract. The Applicant shall give such publicity by adver-
tisement or calls for bids by it for the furnishing to it of wont, labor, materials, and equipment
as required by applicable law and as will provide adequate competition; and the award of each
contract therefor shall be made, after approval by the Government to the lowest responsible
bidder as soon as practicable; Provided, that in the selection of equipment or materials the
Applicant may, in the interest of standardization or ultimate economy, if the advantage of such
standardization or such ultimate economy is clearly evident, and if permissible under applicable
local law, award a contract to a responsible bidder other than the lowest in price. The. Applicant
shall obtain the concurrence of the Government before approving subcontracts relating to the
Project.
A
Section 18. Chail` ;es in Construction Contract. ---Any chani ;e in a construction contract 'flail be
submitted to the Government for approval.
Section 19. Contract Security. - -The Applicant ,hall rocwi.re that eac32 constrj.jctirn contractor
shall furnish a performance bond in ail an "IOLInt at least egllsl to 100 percera of bi% contract prick
as security for the faithful performance of his contract and also a p'aymcnt bond in an am(,unt n(A
less than 50 percent of his contract price of in a pcnal sum not lc:ss than tht?t 13:-escribcd by
State, territorial, or local lava, as security for the p�.y,ncnt of all person pc- forrair- lanor on
the Project under his contract and furnishing material in connection with his contract. T he per-
formance bond and the payment bond may be in one or separate instruments in accordance with
local law.
Section 20. Insurance During Construction.— The App lica.nt shall require that each of its con-
tractors and all subcontractors maintain durzn- the life of his contract, or=en's Compensa-
tion insurance, Public Liability, Property Damage, and Vehicle Liability insurance, in arnounts
and on terms satisfactory to the Government. Until the Project is completed and accepted by the
Applicant, the Applicant or (at the option of the Applicant) the contractor is required to maintain
Builders Risk insurance (Lire and extended covera(re) on a 100 percent basis (completed value
form) on the insurable portion of the Project for the benefit of the Applicant, the prime contrac-
tor, and all subcontractors, as their interests may appear.
Section 21. Wage Rates.- -The Applicant shall comply with the provisions of t„e Act of March 3,
1931 (Davis -Bacon Act, 40 USC sec. 1276), as amended, and the applicable rules and regulations
issued by the Secretary of Labor thereunder which are incorporated herein by reference. The
Applicant shall cause to be inserted in each constrict or subcontract subject to the Davis -Bacon
Act the specific provisions required by the regulations of the Secretary of Labor.
Section 22. Contract Work Hours. -- -The Applicant shall comply tiilth the provisions of the Con-
tract Work Hours Standards Act (40 USC secs. 327 -332) and the applicable rules and regulations
issued by the Secretary of Labor thereunder which are incorporated herein by reference. The
Applicant shall cause to be inserted in each contract or subcontract subject to the Work flours
Standards Act the specific provisions required by the above regulations.
Section 23. Payment of Employees. - - -The Applicant shall require of its contractors that all em-
ployees engaged in wort: on the project be paid in full (less deductions made mandatory by lacy)
not less often than ox]CG eacb woe%,
Section 24. Copeland Act. ---The Applicant shall comply witla the provisions of the Copeland Act
(Anti -- Kickback), 48 Stat. 1948, as amended, and the applicable rules and regulations issued by
the Secretary of Labor thereunder which are incorporated herein by refer .ancc. The Applicant
shall cause to be inserted in each contractor subcontract subject to the Copeland Act the specific
provisions required by the above regulations.
Section 25. Accident Prevention. - -The Applicant shall require of its contractors that precaution
shall be exercised at all times for the protection of persons (including employees) and property,
and that hazardous conditions be guarded against or eliminated.
Section 26. Supervision and Inspection.— The Applicant shall provide and maintain on its own
behalf competent and adequate architectural or engineering services covering the supervision
and inspection of the development and construction of One Project.
5
Section 27. Equal L,allhloynlcnt OPPortunzty.- -The Aphlicani nol:Qby agrocs to incorporate r r
cause to be incorporated ii-£o any contract for construction Ivor: o:: mod Lcation t"hurcoa, 17�1ct
for in whole or in part with funds obtainod iron -, the Fedoral Governmont or horrowcd on the
credit of the Federal Government pursuant to a grunt, contv act, loan, insurance or guarantee`, or
undertaken pursuant to any Federal pro ,,rani involJilig Such grain, contract, loan, ins'urancru o,
guarantee, the following equal opportunity clause:
"During the performance of this contract, the contracmr agraes as folio vm:
(1) The cont"ract"or will not d"iscrirninate against any ei- nployee or applicant for e nnp o 'meat
because of race, creed, color, or national origin. Tlw cGntractor will ta..e af:ira�atz�e
action to ensure that applicants are employed, and that employec-F are treated during
employment, without regard to their race, creed, colo_, or natioz-,al origin. Such action
shall include, but not be limited to, the foliowin;r': en- Irloyi ent, upgradins, de notion,
or transfer; recruitment or recruitment advertising; layoff or termination; rates of
pay or other forms of compensation; and Selection for trainin , includinoy' apprentice-
ship. The contractor agrees to post in conspicuous places., available to e°,rnployee,s and
applicants for employment, notices to be provided setting fortis the provisions of this
nondiscrimination clause.
(2) The contractor will, in all solicitadlons or advertisements for cn - ployees placed by or
on behalf of the contractor, state thatallclualii'ied applicants will receivE consideration
for employment without regard to race, creed, color, or national origin.
(3) 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
to be provided advising the labor union or workers' representative of zhe contractor's
commitments under Section 202 of Executive Order No. 112_-6 of 5eptezmer 24, 1965,
and shall post copies of the notice in conspicuous places available to employees and
applicants for employment.
(4) The contractor will comply with all provisions of Executive 0--,-der No. 112 = 6 of
,September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary
of Labor.
(5) The contractor will furnish all information and reports required by E ecutive Order
No. 11246 of September 241, 1965, and by the rules, regulations, and orders of the
Secretary of Labor, or pursuant thereto, and will permit access to his books, records,
and aceounts by t1io Do,jartrnenc of A .using and r: an De olopnment and the Secretary
of Labor for purposes of investigation to ascertain compliance with such rules, regu-
lations, and orders.
(6) In the event of the contractor's noncompliance with the nondiscrimination clauses Jf
this contract or with any of such rules, regulations, or orders, this contract may he
cancelled, terminated, or suspended in whole- or in x art and the contractor may be
declared ineligible for further Governzrnent contracts or Federally- assisted construc-
tion contracts, in accordance with procedures authorized in Executive Order No. 11246
of September 24-, 1965, and such other sanctions may be imposed and remedies invoked
as provided in Executive Order No. 11246 of September 24-, 1965, or by rule, regulatiot?,
or order of the Secretary of Labor, or as otherwise provided by law.
(7) The contractor will include the provisions of paragraphs (li through (7) in every sub-
contract or purchase order unless exempted by rules, regulation:, or orders of the
N
socreza3:y of Labor issued p4rSL!0l "lE to SC:CLIO:h 20.1 of L.:�C:CLItl,VC C)1 -&:z NC, Ii2�-6 C
Septe!nber 24, 1965, so that such provisions wi'l b bindln'g upon cacti : L`ilCGit ruCiG :�
or vendor. The contractor Will tale such action with respect to any "iUbcontract or
purchase order as the Dcz arthao nt of l' cusin', and Urban i—ray dicCCL as a
n1c'.ans of onforciing such provisions, including sanctions for ri011COriliiii flnCe; Pro °lip -J--d,
hoy.,Cyer, That in the event the contraaMr s7ec0ihIC.S 1171VOIVC0 ;ill, Or is With,
litigation with a subcontractor or vendor as a result of such dhr "ction by the_ Dcpart-
ment of Housing and Urban Developinont, the: contracCor may rGCiLICSt the United States
to enter into such litigation to protect the interests of the United States."
The Applicant further agrees that it Will be bound by the above equal opportunity clause in any
Federally- assistcd construction worl; `,which it performs itself other than through the perm.nane!nt
Work force directly employed by an agency of government.
The .Applicant agrees that it will cool crate aalvely with the Department of Housing and 1. rb�. i
Development and the Secretary of Labor in obtaining the compliance o contractors and subcon..
tractors With the equal opportunity clause and the rules, regulations and r,: tIevant orders of the
Secretary of Labor, that it Will furnish the Department of Housing and Urban Dcve!o'pn_r_zt and
the Secretary of Labor such information as they may require for the supervision of such com-
pliance, and that it Will otherwise assist tha Dopartmort of :lousing and U-rbun Dcvciorpment in
the discharge of the Department's primary responsibillty'for sccu,ing com�oli ace. Th D Applicant
further agrees that it will refrain from entering into any contract or contract modification suh
ject to Executive Order 112-M with a contractor debarred from, or wino has nct dernonstAatUd
eligibility for, Government contracts and Federally assisted construction contracts pursuant to
Part II, Subpart D, of Executive Order 11246 and will carry out Such sanctions and penalties xo�:
violation of the equal opportunity clause as :nay be imposed upon contractors and subcontractors
by the Department of Housing and Urban Development or the Secretary of Labor pursuant to
Dart H, Subpart D, of Executive Order 112-116. In addition, the Applicant agrees tlnLt if it fails or
rciuses to comply With these undertakings, the Department; of 11- lous-ing and Url)ail Develo 3iTAC,zt
may cancel, terminate or suspend in .'hole or in part this grant, may retrain from e. ce: ding any
further assistance to the Applicant under the program Wltih respect to which the flaijure or rafuscl
occurred until satisfactory assurance of future connpliance has been received from such Appli-
cant, or may refer the case to the Department of Justice for appropriate legal procecc ings.
Section 25. Civil Rights Act of 1964.- -The Applicant covenants and agrees that it will comply
With 'Title VI of the Civil Rights Act of 1964 (P.L. 88.352), and with the rules and regulation,
(24 CFR, Subtitle A, Part 1) of the Department of housing and Urban Develooment issued pursuant
thereto.
Section 29. Payments to Contractors.- -•_Not later than the fifteeith day of each calendar month
the Applicant small maize a partial payment to each construction contractor on -he basis of a duly
certified and approved estimate of the work performed during; the preceding calendar month by
the particular contractor, but shall retain until final coniplation and acceptance of all wort-, cov-
ered by the particular contract a reasonable amount, specified in the contract, sufficient to insure
the proper performance of the contract.
Section 30. Inspection of Wort: and Records; Maintenance of Applicant shall re-
quire Of its contractors that the Oovo nment'3 authorized representatives be permitted, and it
will itself permit them to inspect all Woric, materials, payrolls, records of personnel, invoices
of materials and other relevant data and records a'cipertaiini::� to the develolonheht of the Project.
The Applicant shall maintain proper and accurate financial records, boo,:s and accounts pertain—
ing to the grant and the development of the Project that will readily disclose (1) relocation: costs,
7
(2) eligible Project costs, and (3) oth r 1-' 'o,jCCt CGc;£S, and 'Shall I =i.]et au-
thorizod reprosentatives t0 examine:: such 'buoll -s, rccords, and accounts. The Applic.^lt t to
maintain all of tho aforesaid data, record- andhivoicos in 0,1, placc fo �t lG« t a r)e --iod of lhre —L
years following completion Oa COnSt.CUCtiOi] 0= t11110 1IrO,joct.
Section 31. Signs. —The Applicant shall cause to be C -,r :ctc`td at tl o Site of ti] :�'1'o ;��Ct, and i- naif --
tained during construction, sins Sabi`- ,factory t0 the Govcr: ni,] nLIdL tifyin °`i.L l�rGject and ii]Gi-
cating the fact that the Government is participating iii the develop i -nelit of the Proj%Ct.
Section 32. Audit. ---The Applicant shall contract at its own e ;.p=se for an audit of itiF, P,i ojcct
by an independent certified or licensed public accountant; a copy of ti}c contract
nished to the Government; and throe copies of the audit report in substan cc; s tiw_Gctory to fair
Government shall be furnished promptly to the Government.
Section 33. Government Field Expo 1se.- � i he Covernnaent vtill bill t:!,a Ap '°11ii LnY for ja j`: ;':ant
of the fee specified in the Grant A- reament to cover in&i�cctio n costs and paymIal;t t ;' ll i)E dui
from the first funds deposited in [he Cons. uctlon Account by Arj-,Jlican£ tG GLy -its shari: cj'
the Project Cost. In the event of termination of the Grant Ag�G('mc °t, tho Apt 31.ica1]t. shall LG
entitled to a refund of all or a proportionate part of z 20 fce: The -& until Shall 17G in St Cii an aiiauLi t
as the Government de % ermines to be equit -ble under ti-,o circumstances.
Section 34. Operation of Project. - -The Applicant covenants %hat it will o er£:Le and nt fit u.11 Lne
project or provide for the operation and Triaintenance thereof, to se ve the ouject., and 1)urpos& s
for which the grant has been made available under the Federal law and the terms o"f the f ".grec-
ment.
Section 35. interest of Third Parties.—The Agreement is not f0:: u-no ban& it of zLii Cl i)azzlcs,
including the holders from time to time Of any of trio bonds issued to finai]cc a POI: OI-I 01 the'
Project, and the Government shall be i]ndol- I]o oaligation to any sucli partios, wnctnez or nog
indirectly interested in said Agreement, to pay any charge v or expenses incident to compliance
by the Applicant with any of its duties or obligations thereunder.
Section 36. interest of Members of or Delegntes to Congress.-- -- \O member of or deli ,atc to the
Congress of the United States shall be admitted to any share or "part of this Agreement or to any
benefit arising therefrom.
Section 37. Bonus or Cornmission. ---By execution of the Agreement, the Aapllc ant represents
that it has not paid and, also, agrees not t0 pay, any bonus commission or fee for the purpose of
obtaining an approval of its application for the ;rant hereunder.
Section 38. State or Territorial Lava —Anything in the Agreement to the Contrary not`.Athstanding,
nothing in the Agreement shall require the Applicant to Observe or enforce compliance with any
provision thereof, perform any other act" or do any Other thing in contravention of any applicaabie
State Or territorial law; Provided, That if any of tho provisions oi the agree :klcnt violate ary
applicable State or territorial law, or if compliance with the provisions of fife Agreement would
require the Applicant to violate any applicable State or territorial law, the Applicant vr"ill at once
notify the Government in writing in order: that appropriate changes and rnodificaLions may be
made by the Government and the Applicant to the end that the Applicant may proceed as soon as
possible with the construction of the project.
G? Q 576 -553
17 '1