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PROPOSITION 1 DRINKING WATER
CITY OF FRESNO
(on behalf of Orange Center School District)
AND
CALIFORNIA STATE WATER RESOURCES CONTROL BOARD
PUBLIC WATER SYSTEM CONSTRUCTION FINANCING
ORANGE CENTER SCHOOL DISTRICT CONSOLIDATION WITH CITY OF FRESNO
DRINKING WATER STATE REVOLVING FUND PROJECT NO. 1000276-001C
AGREEMENT NO. D1 5-O2O3O
AMOUNT: $2,932,600
ELIGIBLE START DATE: September 21,2015
END DATE: December 31, 2054
THIS PAGE INTENTIONALLY LEFT BLANK
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1000276-001 C
TABLE OF CONTENTS
ARTTCLE I DEF|N|T|ONS........... ..........1 r
1.2 Exhibits and Appendices lncorporated............. ......................4
ARTICLE ll REPRESENTATIONS, WARRANTIES, AND COMM|TMENTS .....................,:......... ...........4
2.1 General Recipient Commitments. ................ ..........................4
2.2 Authorization and Validity. ....,,........4
2.6 LegalStatus and Eligibility ..............4
2.7 Financial Statements.. .....,.............. 5
2.8 Completion of Project. .................... s
2.9 Award of Construction Contracts. ................ ..........................5
2.11 Findings and Cha11en9e................,. ...................7
2.12 Project Access. ..........7
2.13 Project Completion; lnitiation of Operations. ................ .........7
2.14 Continuous Use of Project; Lease or Disposal of Project.... ......................7
2.15 Project Reports.....,............... .........7
216 FederalDisadvantaged Business Enterprise (DBE)Reporting.... .............8
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
3.2 Amounts Payable by the Recipient. ............. ........................ 10
3.4 No Obligation of the State. .......... ..................... 10
3.5 Disbursement of Project Funds; Availability of Funds...... ........................ 1O
3.6 Withholding of Disbursements and Material Vio|ations........................ ........................ I 1
3.7 Rates, Fees and Charges. ..........i......... ...........12
3.8 Financial Management System and Standards. ............... .......................12
3.9 Accounting and Auditing Standards. ................12
3.10 Other Assistance. .......... ..............12
ARTICLE tV - RESERVED.................. ....................12
ARTTCLE V MTSCELLANEOUS pROVtStONS................. .........13
5.1 Amendment ..............13
5.4 Competitive Bidding .....................13
5.5 Compliance with Law, Regulations, etc. ............. .................13
5.6 Conflict of lnterest. ....................... 13
5.7 Damages for Breach Affecting Tax-Exempt Status or Federal Compliance. ...............14
5.9 Governing Law............. ................14
5.10 lncome Restrictions. ....................14
5.11 lndemnification and State Reviews. ................ ....................14
5.12 lndependent Actor. .......... ............1S
5.13 Financial Disclosure... .................. 15
5.14 Non-Discrimination Clause. .........1S
5.15 No Third Party Rights ...................16
5.16 Operation and Maintenance; lnsurance. ............ .................16
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
5.17 Permits, Subcontracting, and Remedies. ........16
5.18 Prevailing Wages. ........................17
5.19 Public Fundin9............... ..............17
5.20 Recipient's ResponsibilityforWork. .....,..........17
5.21 Related Litigation. ........................17
5.22 Rights in Data. .........17
5.23 State Water Board Action; Costs and Attorney Fees........... ...................17
5.24 Termination; lmmediate Acceleration; lnterest. ..............,,,..18
5.26 Unenforceable Provision. .............18
5.29 Waiver and Rights of the State Water 8oard.......... ............. 18
EXHIBIT A - SCOPE OF WORK & INCORPORATED DOCUMENTS
EXHIBIT B - FUNDINGAMOUNT
EXHIBIT C - RESERVED
EXHIBIT D - SPECIALCONDITIONS
EXHIBIT E - PROGRAMMATIC CONDITIONS & CROSS-CUTTERS
EXHIBIT F - RESERVED
EXHIBIT G - DAVIS-BACON REQUIREMENTS
EXHIBIT H - COMPLIANCE WITH CROSS-CUTTING STATE AUTHORITIES
EXHIBIT I- MATERIAL LITIGATION, INVESTIGATIONS, AUDITS
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1000276-001 C
This Grant, including all exhibits and attachments hereto, (Agreement) is dated as of the date set forth on
the cover page of this Agreement, by and between the State Water Resources Control Board, an
administrative and regulatory agency of the State of California (State Water Board), and the local
government entity identified on the first page of this Agreement, duly organized and existing under the
laws of the State of California (Recipient):
WITNESSETH:
WHEREAS the United States of America, pursuant to section 1452 of the federal Safe Drinking Water Act
(42 U.S.C. S 300j-12) as such has been and may be amended from time to time (FederalAct), requires
each State to establish a drinking water state revolving fund to be administered by an instrumentality of
the State as a condition to receipt of capitalization grants under the Safe Drinking Water Act; and
WHEREAS the State of California (State) has established a Drinking Water State Revolving Fund
(DWSRF or SRF) pursuant to Chapter 4.5 of Part 12 of Division 104 of the California Health and Safety
Code (State Act) to be used for purposes of the Safe Drinking Water Act; and
WHEREAS the State Water Board is the state agency authorized to administer the DWSRF and provide
financial assistance from the DWSRF to public water systems for the construction of eligible projects,
including planning, as provided in the State Act; and
WHEREAS through the passage of various bond acts, the voters of the State have authorized the State
Water Board to make available certain general obligation bond proceeds (GO Bond Proceeds)for
projects meeting certain criteria; and
WHEREAS the State Water Board determines eligibility for financial assistance from the SRF, determines
a reasonable schedule for financing such projects, ensures compliance with the Federal Act and the State
Act and the State GO Bond Act, and establishes the terms and conditions of an applicable financing
agreement; and
WHEREAS the Recipient has applied to the State Water Board for financial assistance from the SRF, for
the purpose of financing or refinancing the Project described in this Agreement, and the State Water
Board has reviewed and approved said application; and
WHEREAS the Recipient has or will incur costs incurred in connection with the planning, design,
acquisition, construction, and installation of the Project described in this Agreement, including exhibits
hereto; and
WHEREAS on the basis of the Recipient's application and the representations and warranties set forth
herein, the State Water Board proposes to assist in financing the costs of the Project, and the Recipient
desires to participate as a recipient of financial assistance from the State Water Board upon the terms
and conditions set forth in this Agreement, all pursuant to the Federal Act and the State Act and the State
GO Bond Act;
NOW, THEREFORE, in consideration of the premises and of the mutual representations, covenants and
agreements herein set forth, the State Water Board and the Recipient, each binding itself, its successors
and assigns, do mutually promise, covenant and agree as follows:
ARTICLE I DEFINITIONS
1.1 Definitions.
Unless otherwise specified, each capitalized term used in this Agreement (including the Exhibits hereto) has
the following meaning:
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
"Additional Payments" means the Additional Payments described in Section 3.2(c) of this Agreement.
"Agreement" means this Grant, dated as of the date set forth on the first page hereof, by and between the
State Water Board and the Recipient, including all exhibits and attachments hereto.
"Allowance" means an amount based on a percentage of the accepted bid for an eligible project to help
defray the planning, design, and construction engineering and administration costs of the Project.
"Authorized Representative" means the duly appointed representative of the Recipient. For all authorized
representatives, a certified original of the authorizing resolution that designates the authorized
representative, by title, must accompany the first disbursement request, and any other documents or
requests required or allowed under this Agreement.
"Completion of Construction" means the date, as determined by the Division after consultation with the
Recipient, that the work of building and erection of the Project is substantially complete.
"District Office" means District Office of the Division of Drinking Water of the State Water Resources
Control Board.
"Division" means the Division of Financial Assistance of the State Water Board or any other segment of
the State Water Board authorized to administer the SRF.
"Division of Drinking Water" means the Division of Drinking Water of the State Water Board.
"DWSRF' means the Drinking Water State Revolving Fund.
"Eligible Start Date" means the date set forth in Exhibit B, establishing the date after which construction
costs may be incurred and eligible for reimbursement hereunder.
"Enterprise Fund" means the enterprise fund of the Recipient in which Revenues are deposited.
"Fiscal Year" means the period of twelve (12) months terminating on June 30 of any year, or any other
annual period hereafter selected and designated by the Recipient as its Fiscal Year in accordancé with
applicable law.
"Force Account" means the use of the Recipient's own employees or equipment for construction of the
Project.
"lnitiation of Construction" means the date that notice to proceed with work is issued for the Project, or, if
notice to proceed is not required, the date of commencement of building and erection of the Project.
"Listed Event" means, so long as the Recipient has outstanding any System Obligation subject to Rule
15c2-12, any of the events required to be reported pursuant to Rule 15c2-12(b)(5).
"Material Event" means any event that, as determined by the Division, might cause the State Water
Board to violate the terms and conditions of its agreements with U.S. EPA or its bond covenants,
including any of the following: (a) revenue shortfalls; (b) unscheduled draws on the Reserve fund, if any,
or the Enterprise Fund; (c) substitution of insurers, or their failure to perform; (d) adverse findings by the
Division of Drinking Water; (e) litigation related to the Revenues, the System, or the Project, whether
pending or anticipated; (f) any false warranty or representation made by the Recipient relevant to this
Agreement; (g) loss, theft, damage, or impairment to the Revenues or the System; (h) dissolution or
cessation of operations by Recipient, termination of Recipient's existence, insolvency of Recipient, or
filing of a voluntary or involuntary bankruptcy petition by or on behalf of Recipient.
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 00027ô-001 C
"Net Revenues" means, for any Fiscal Year, all Revenues received by the Recipient less the Operations
and Maintenance Costs for such Fiscal Year.
"Operations and Maintenance Costs" means the reasonable and necessary costs paid or incurred by the
Recipient for maintaining and operating the System, determined in accordance with generally accepted
accounting principles, including all reasonable expenses of management and repair and all other
expenses necessary to maintain and preserve the System in good repair and working order, and
including all reasonable and necessary administrative costs of the Recipient that are charged directly or
apportioned to the operation of the System, such as salaries and wages of employees, overhead, taxes (if
any), the cost of permits, licenses, and charges to operate the System and insurance premiums; but
excluding, in all cases depreciation, replacement, and obsolescence charges or reserves therefor and
amortization of intangibles.
"Policy" means the State Water Board's "Policy for lmplementing the Drinking Water State Revolving
Fund," as amended from time to time.
"Project" means the Project financed by this Agreement as described in Exhibit A and in the documents
incorporated by reference herein.
"Project Completion" means the date, as determined by the Division after consultation with the Recipient,
that operation of the Project is initiated or is capable of being initiated, whichever comes first.
"Project Costs" means the incurred costs of the Recipient which are eligible for financial assistance under
this Agreement, which are allowable costs as defined under the Policy, and which are reasonable,
necessary and allocable by the Recipient to the Project under generally accepted accounting principles,
plus capitalized interest.
"Project Funds" means funds disbursed by the State Water Board to the Recipient for purposes of this
Agreement.
"Recipient" means the recipient of Project Funds, as identified on the front page of this Agreement.
"Revenues" means, for each Fiscal Year, all gross income and revenue received or receivable by the
Recipient from the ownership or operation of the System, determined in accordance with generally
accepted accounting principles, including all rates, fees, and charges (including connection fees and
charges)as received by the Recipient for the services of the System, and all other income and revenue
howsoever derived by the Recipient from the ownership or operation of the System or arising from the
System, including all income from the deposit or investment of any money in the Enterprise Fund or any
rate stabilization fund of the Recipient or held on the Recipient's behalf, and any refundable deposits
made to establish credit, and advances or contributions in aid of construction.
"SRF" means the Drinking Water State Revolving Fund.
"State" means State of California.
"State Water Board" means the State Water Resources Control Board, an administrative and regulatory
agency of the State of California.
"System" means all drinking water collection, transport, treatment, storage, and delivery facilities,
including land and easements thereof, owned by the Recipient, including the Project, and all other
properties, structures, or works hereafter acquired and constructed by the Recipient and determined to be
a part of the System, together with all additions, betterments, extensions, or improvements to such
facilities, properties, structures, or works, or any part thereof hereafter acquired and constructed.
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
"System Obligation" means any long{erm obligation of the Recipient payable from the Enterprise Fund,.
1.2 Exhibits and Appendices lncorporated.
All exhibits and appendices to this Agreement, including any amendments and supplements hereto, are
hereby incorporated herein and made a part of this Agreement.
ARTICLE II REPRESENTATIONS, WARRANTIES, AND COMMITMENTS
The Recipient represents, warrants, and commits to the following as of the date set forth on the first page
hereof and continuing thereafter for the term of the Agreement.
2.1 GeneralRecipientCommitments.
The Recipient accepts and agrees to comply with all terms, provisions, conditions, and commitments of
this Agreement, including all incorporated documents, and to fulfill all assurances, declarations,
representations, and commitments made by the Recipient in its application, accompanying documents,
and communications filed in support of its request for financial assistance.
2.2 Authorization and Validity.
The execution and delivery of this Agreement, including all incorporated documents, has been
duly authorized. This Agreement constitutes a valid and binding obligation of the Recipient,
enforceable in accordance with its terms, except as such enforcement may be limited by law.
2.3 No Violations.
The execution, delivery, and performance by Recipient of this Agreement, including all
incorporated documents, do not violate any provision of any law or regulation in effect as of the
date set forth on the first page hereof, or result in any breach or default under any contract,
obligation, indenture, or other instrument to which Recipient is a party or by which Recipient is bound
as of the date set forth on the first page hereof.
2.4 No Litigation.
There are no pending or, to Recipient's knowledge, threatened actions, claims, investigations,
suits, or proceedings before any governmental authority, court, or administrative agency which
affect the financial condition or operations of the Recipient, the System, the Revenues, and/or the
Project other than as described in Exhibit I hereto.
2.5 Solvency.
None of the transactions contemplated by this Agreement will be or have been made with an actual intent
to hinder, delay, or defraud any present or future creditors of Recipient. As of the date set forth on the first
page hereof, Recipient is solvent and will not be rendered insolvent by the transactions contemplated by
this Agreement. Recipient is able to pay its debts as they become due.
2.6 Legal Status and Eligibility.
Recipient is duly organized and existing and in good standing under the laws of the State of California,
and will remain so during the term of this Agreement. Recipient shall at all times maintain its current legal
existence and preserve and keep in full force and effect its legal rights and authority. Recipient shall
maintain its eligibility for funding under this Agreement for the term of this Agreement.
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
2.7 Financial Statements.
The financial statements of Recipient previously delivered to the State Water Board as of the date(s) set
forth in such financial statements: (a) are materially complete and correct; (b) present fairly the financial
condition of the Recipient; and (c) have been prepared in accordance with generally accepted accounting
principles or other accounting standards reasonably approved by the State Water Board. Since the
date(s) of such financial statements, there has been no material adverse change in the financial condition
of the Recipient, nor have any assets or properties reflected on such financial statements been sold,
transferred, assigned, mortgaged, pledged or encumbered, except as previously disclosed in writing by
Recipient and approved in writing by the State Water Board.
2.8 Completion of Project.
The Recipient agrees to expeditiously proceed with and complete construction of the Project in
substantial accordance with Exhibit A.
2.9 Award of Construction Contracts.
(a) The Recipient agrees to award the prime construction contract no later than the date specified in
Exhibit A.
(b) The Recipient agrees to promptly notify the Division in writing both of the award of the prime
construction contract for the Project and of lnitiation of Construction of the Project. The Recipient
agrees to make all reasonable efforts to complete construction in substantial conformance with
the terms of the contract by the Completion of Construction date established in Exhibit A. Such
date shall be binding upon the Recipient unless modified in writing by the Division upon a
showing of good cause by the Recipient. The Recipient shall deliver any request for extension
of the Completion of Construction date no less than 90 days prior to the Completion of
Construction date. The Division will not unreasonably deny such a timely request, but the
Division may deny requests received after this time.
2.10 Notice.
(1) The Recipient agrees to notify the Division in writing within five (5) working days of the occurrence of
the following:
(a) Bankruptcy, insolvency, receivership or similar event of the Recipient;
(b) Actions taken pursuant to state law in anticipation of filing Chapter 9;
(c) Other Material Events;
(d) Change of ownership of the Project or change of management or service contracts, if any,' for operation of the Project; or
(2) The Recipient agrees to notify the Division within 10 working days of the following:
(a) Materialdefaults on System Obligations;
(b) Unscheduled draws on debt service reserves held for System Obligations, if any, reflecting
financial difficulties;
(c) Unscheduled draws on credit enhancements on System Obligations, if any, reflecting financial
difficulties;
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
(d) Substitution of credit or liquidity providers, if any, or their failure to perform;
(e) Any litigation pending or threatened against Recipient regarding its water capacity or its
continued existence, circulation of a petition to challenge rates, consideration of dissolution, or
disincorporation, or any other material threat to the Recipient's Revenues;
(f) Adverse tax opinions, the issuance by the lnternal Revenue Service or proposed or final
determinations of taxability, Notices of Proposed lssue (lRS Form 5701-TEB) or other material
notices of determinations with respect to the tax status of any tax-exempt bonds;
(g) Rating changes on outstanding System Obligations, if any;
(3) The Recipient agrees to notify the Division promptly of the following:
(a) Any substantial change in scope of the Project. The Recipient agrees that no substantial
change in the scope of the Project will be undertaken until written notice of the proposed
change has been provided to the Division and the Division has given written approval for
such change;
(b) Cessation of all major construction work on the Project where such cessation of work is
expected to or does extend for a period of thirty (30) days or more;
(c) Any circumstance, combination of circumstances, or condition, which is expected to or does
delay Completion of Construction for a period of ninety (90) days or more beyond the
estimated date of Completion of Construction previously provided to the Division;
(d) Discovery of any potential archeological or historical resource. Should a potential
archeological or historical resource be discovered during construction of the Project, the
Recipient agrees that all work in the area of the find will cease until a qualified archeologist
has evaluated the situation and made recommendations regarding preservation of the
resource, and the Division has determined what actions should be taken to protect and
preserve the resource. The Recipient agrees to implement appropriate actions as directed
by the Division;
(e) Discovery of any unexpected endangered or threatened species, as defined in the federal
Endangered Species Act. Should a federally protected species be unexpectedly
encountered during construction of the Project, the Recipient agrees to promptly notify the
Division. This notification is in addition to the Recipient's obligations under the federal
Endangered Species Act;
(f) Any monitoring, demonstration, or other implementation activities such that the State Water
Board and/or Division of Drinking Water staff may observe and document such activities;
(g) Any public or media event publicizing the accomplishments and/or results of this Agreement
and provide the opportunity for attendance and participation by state and federal
representatives with at least ten (10) working days' notice to both the Division and USEPA
Region lX. The contact for USEPA Region lX is Juanita Licata at licata.iuanita@eoa.oov
(415) 972-3450; or
(h) Completion of Construction of the Project, and actual Project Completion.
(a) lf the Recipient is regulated by the California Public Utilities Commission, the Recipient shall within
three (3) days submit to the State Water Board by certified mail copies of any and all documents filed with
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
the California Public Utilities Commission, including but not limited to applications, petitions, and
investigations.
2.11 Findings and Challenge
Upon consideration of a voter initiative to reduce Revenues, the Recipient shall make a finding regarding
the effect of such a reduction on the Recipient's ability to satisfy the rate covenant set forth in Section 3.7
of this Agreement. The Recipient agrees to request, if necessary, the authorization of the Recipient's
decision-maker or decision-maker body to file litigation to challenge any such initiative that it finds will
render it unable to satisfy the rate covenant set forth in Section 3.7 hereof and its obligation to operate
and maintain the Project for its useful life. The Recipient shall diligently pursue and bear any and all costs
related to such challenge. The Recipient shall notify and regularly update the State Water Board
regarding any such challenge.
2.12 Project Access.
The Recipient agrees to ensure that the State Water Board, the Governor of the State, the United States
Environmental Protection Agency, the Office of lnspector General, any member of Congress, the
President of the United States, or any authorized representative of the foregoing, will have safe and
suitable access to the Project site at all reasonable times during Project construction and thereafter for
the term of the Obligation. The Recipient acknowledges that, except for a subset of archeological
records, the Project records and locations are public records, including but not limited to all of the
submissions accompanying the application, all of the documents incorporated by Exhibit A, and all
reports, disbursement requests, and supportin g documentation subm itted hereunder.
213 Project Completion; lnitiation of Operations.
Upon Completion of Construction of the Project, the Recipient agrees to expeditiously initiate Project
operations.
2.14 Continuous Use of Project; Lease or Disposal of Project.
The Recipient agrees that, except as provided in the Agreement, it will not abandon, substantially
discontinue use of, lease, or dispose of the Project or any significant part or portion thereof during the
useful life of the Project without prior written approval of the Division. Such approval may be conditioned
as determined to be appropriate by the Division, including a condition requiring acceleration of all or any
portion of all remaining funds covered by this Agreement together with accrued interest and any penalty
assessments which may be due.
2.15 Project Reports.
(a) Quarterly Reports. The Recipient agrees to expeditiously provide status reports no less
frequently than quarterly, starting with the execution of this Agreement. These reports shall
accompany disbursement requests. At a minimum the reports will contain the following
information:
a summary of progress to date including a description of progress since the last report,
percent construction complete, percent contractor invoiced, and percent schedule
elapsed;
a description of compliance with environmental requirements;
a listing of change orders including amount, description of work, and change in contract
amount and schedule;
City of Fresno
Agreement No.: D'1 5-02030
Project No.: 1 000276-001 C
. any problems encountered, proposed resolution, schedule for resolution, and status of
previous problem resolutions.
(b) Project Completion Report. The Recipient shall submit a Project Completion Report to the Division
with a çopy to the appropriate District Office of the Division of Drinking Water on or before the due
date established by the Division and the Recipient at the time of final project inspection. The
Project Completion Report must address the following:
(a) describe the Project,
(b) describe the water quality problem the Project sought to address,
(c) discuss the Project's likelihood of successfully addressing that water quality problem in the. future, and
(d) summarize compliance with environmental conditions, if applicable.
Where the Recipient fails to submit a timely Project Completion Report, the State Water Board may
stop processing pending or future applications for new financial assistance, withhold disbursements
under this Agreement or other agreements, and begin administrative proceedings.
(c) As Needed Reports. The Recipient agrees to expeditiously provide, during the term of this
Agreement, such reports, data, and information as may be reasonably required by the Division,
including but not limited to material necessary or appropriate for evaluation of the SRF Program or
to fulfill any reporting requirements of the federal government.
2.16 Federal Disadvantaged Business Enterprise (DBE) Reporting.
The Recipient agrees to report DBE utilization to the Division on the DBE Utilization Report, State Water
Board Form DBE UR334. The Recipient must submit such reports to the Division annually within ten (10)
calendar days following October 1 until such time as the "Notice of Completion" is issued. The Recipient
agrees to comply with 40 CFR S 33.301.
2.17 Records.
(a) Without limitation of the requirement to maintain Project accounts in accordance with generally
accepted accounting principles, the Recipient agrees to:
(1) Establish an official file for the Project which shall adequately document all significant
actions relative to the Project;
(2) Establish separate accounts which will adequately and accurately depict all amounts
received and expended on the Project, including all assistance funds received under this
Agreement;
(3) Establish separate accounts which will adequately depict all income received which is
attributable to the Project, specifically including any income attributable to assistance funds
disbursed under this Agreement;
(4) Establish an accounting system which will accurately depict final total costs of the Project,
including both direct and indirect costs;
(5) Establish such accounts and maintain such records as may be necessary for the State to
fulfill federal reporting requirements, including any and all reporting requirements under
federal tax statutes or regulations; and
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
(6) lf Force Account is used by the Recipient for any phase of the Project, other than for
planning, design, and construction engineering and administration provided for by
allowance, accounts will be established which reasonably document all employee hours
charged to the Project and the associated tasks performed by each employee. lndirect
Force Account costs are not eligible for funding.
(b) The Recipient shall be required to maintain separate books, records and other material relative
to the Project. The Recipient shall also be required to retain such books, records, and other
material for itself and for each contractor or subcontractor who performed work on this project for
a minimum of thirty-six (36) years after Project Completion. The Recipient shall require that such
books, records, and other material be subject at all reasonable times (at a minimum during
normal business hours) to inspection, copying, and audit by the State Water Board, the Bureau
of State Audits, the United States Environmental Protection Agency (USEPA), the Office of
lnspector General, the lnternal Revenue Service, the Governor, or any authorized
representatives of the aforementioned, and shall allow interviews during normal business hours
of any employees who might reasonably have information related to such records. The
Recipient agrees to include a similar right regarding audit, interviews, and records retention in
any subcontract related to the performance of this Agreement. The provisions of this section
shall survive the term of this Agreement.
2.18 Audit.
(a) The Division, at its option, may call for an audit of financial information relative to the Project,
where the Division determines that an audit is desirable to assure program integrity or where
such an audit becomes necessary because of federal requirements. Where such an audit is
called for, the audit shall be performed by a certified public accountant independent of the
Recipient and at the cost of the Recipient. The audit shall be in the form required by the
Division.
(b) Audit disallowances will be returned to the State Water Board.
2.19 Signage.
The Recipient shall place a sign at least four feet tall by eight feet wide made of Yqinch thick exterior
grade plywood or other approved material in a prominent location on the Project site and shall maintain
the sign in good condition for the duration of the construction period. The sign shall include the following
disclosure statement and color logos (available from the Division):
"Funding for this two million nine hundred thirty{wo thousand six hundred dollars and no
cents ($2,932,600) Orange Center School District Consolidation with City of Fresno
Project has been provided in full or in part by Proposition 1 - the Water Quality, Supply,
and lnfrastructure lmprovement AcIof 2014 and the Drinking Water State Revolving
Fund through an agreement with the State Water Resources Control Board. California's
Drinking Water State Revolving Fund is capitalized through a variety of funding sources,
including grants from the United States Environmental Protection Agency and state bond
proceeds."
The Project sign may include another agency's required promotional information so long as the
above logos and disclosure statement are equally prominent on the sign. The sign shall be prepared
in a professional manner.
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
The Recipient shall include the following disclosure statement in any document, written report, or
brochure prepared in whole or in part pursuant to this Agreement:
"Funding for this project has been provided in full or in part through an agreement with
the State Water Resources Control Board. California's Clean Drinking Water State
Revolving Fund is capitalized through a variety of funding sources, including grants from
the United States Environmental Protection Agency and state bond proceeds. The
contents of this document do not necessarily reflect the views and policies of the
foregoing, nor does mention of trade names or commercial products constitute
endorsement or recommendation for use."
ARTICLE III FINANCING PROVISIONS
3.1 Recipient'sObligation
The State Water Board's disbursement of funds hereunder is contingent on the Recipient's compliance
with the terms and conditions of this Agreement.
3.2 Amounts Payable by the Recipient.
(a) Repayments. Repayments are waived, as provided in Exhibit B.
(b) Project Costs. The Recipient agrees to pay any and all costs connected with the Project
including, without limitation, any and all Project Costs. lf the Project Funds are not sufficient to
pay the Project Costs in full, the Recipient shall nonetheless complete the Project and pay that
portion of the Project Costs in excess of available Project Funds, and shall not be entitled to any
reimbursement therefor from the State Water Board.
(c) Additional Payments. The Recipient shall pay to the State Water Board the reasonable
extraordinary fees and expenses of the State Water Board, and of any assignee of the State
Water Board's right, title, and interest in and to this Agreement, in connection with this
Agreement, including all expenses and fees of accountants, trustees, attorneys, litigation costs,
insurance premiums and all other extraordinary costs reasonably incurred by the State Water
Board or assignee of the State Water,Board.
Additional Payments may be billed to the Recipient by the State Water Board from time to time,
together with a statement executed by a duly authorized representative of the State Water
Board, stating that the amounts billed pursuant to this section have been incurred by the State
Water Board or its assignee for one or more of the above items and a copy of the invoice or
statement for the amount so incurred or paid. Amounts so billed shall be paid by the Recipient
within thirty (30) days after receipt of the bill by the Recipient.
3.3 [reserved]
3.4 No Obligation of the State.
Any obligation of the State Water Board herein contained shall not be an obligation, debt, or liability of the
State and any such obligation shall be payable solely out of the moneys in the SRF made available
pursuant to this Agreement.
3.5 Disbursement of Project Funds; Availability of Funds.
(a) Except as may be othenruise provided in this Agreement, disbursement of Project Funds will be
made as follows:
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City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001C
(1) Upon execution and delivery of this Agreement, the Recipient may request immediate
disbursement of any eligible incurred planning and design allowance as specified in Exhibit
B from the Project Funds through submission to the State Water Board of the Disbursement
Request Form 260, or any amendment thereto, duly completed and executed. The
Recipient must submit a disbursement request for costs incurred prior to the date the
Agreement is executed by the State Water Board no later than ninety (90) days after this
Agreement is executed by the State Water Board. Late disbursement requests may not be
honored.
(2) The Recipient may request disbursement of eligible construction and equipment costs
consistent with budget amounts referenced in Exhibit B.
(3) Additional Project Funds will be promptly disbursed to the Recipient upon receipt of
Disbursement Request Form 260, or any amendment thereto, duly completed and
executed by the Recipient for incurred costs consistent with this Agreement, along with
receipt of status reports due under Section 2.15 above.
(a) The Recipient agrees that it will not request disbursement for any Project Cost until such' cost has been incurred and is currently due and payable by the Recipient, although the
actual payment of such cost by the Recipient is not required as a condition of disbursement
request.
(5) Recipient shall spend Project Funds within 30 days of receipt. Any interest earned on
Project Funds shall be reported to the State Water Board and may be required to be
returned to the State Water Board or deducted from future disbursements.
(6) The Recipient agrees that it will not request a disbursement unless that Project Cost is
allowable, reasonable, and allocable.
(7) Notwithstanding any other provision of this Agreement, no disbursement shall be required at
any time or in any manner which is in violation of or in conflict with federal or state laws,
policies, or regulations.
(b) The State Water Board's obligation to disburse Project Funds is contingent upon the availability
of sufficient funds to permit the disbursements provided for herein. lf suf{icient funds are not
available for any reason, including but not limited to failure of the federal or State government to
appropriate funds necessary for disbursement of Project Funds, the State Water Board shall not
be obligated to make any disbursements to the Recipient under this Agreemeñt. tnis provision
shall be construed as a condition precedent to the obligation of the State Water Board to make
any disbursements under this Agreement. Nothing in this Agreement shall be construed to
provide the Recipient with a right of priority for disbursement over any other agency. lf any
disbursements due the Recipient under this Agreement are deferred because sufficient funds
are unavailable, it is the intention of the State Water Board that such disbursement will be made
to the Recipient when sufficient funds do become available, but this intention is not binding.
3.6 WithholdingofDisbursementsand MaterialViolations.
(a) The State Water Board may withhold all or any portion of the funds provided for by this
Agreement in the event that:
(1) The Recipient has materially violated, or threatens to materially violate, any term, provision,
condition, or commitment of this Agreement; or
(2) The Recipient fails to maintain reasonable progress toward completion of the Project.
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City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
(b) For the purposes of this Agreement, the terms "material violation" or "threat of material violation"
include, but are not limited to:
('l) Placement on the ballot of an initiative or referendum to reduce Revenues;
(2) Passage of such an initiative or referendum;
(3) Successful challenges by ratepayer(s) to the process used by Recipient to set, dedicate, or
otherwise secure Revenues; or
(a) Any other action or lack of action that may be construed by the Division as a material
violation or threat thereof.
3.7 Rates, Fees and Charges.
(a) Rates, Fees and Charges. The Recipient agrees, to the extent permitted by law, to fix, prescribe
and collect rates, fees and charges for the System during each Fiscal Year which are
reasonable, fair, and nondiscriminatory and which will be at least sufficient to yield during each
Fiscal Year Net Revenues in an amount necessary to meet its obligations under this Agreement.
The Recipient may make adjustments from time to time in such fees and charges and may make
such classification thereof as it deems necessary, but shall not reduce the rates, fees and
charges then in effect unless the Net Revenues from such reduced rates, fees, and charges will
at all times be sufficient to meet the requirements of this section.
3.8 Financial Management System and Standards.
The Recipient agrees to comply with federal standards for financial management systems. The Recipient
agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit
preparation of reports required by the federal government and tracking of Project funds to a level of
expenditure adequate to establish that such funds have not been used in violation of federal or state law
or the terms of this Agreement. To the extent applicable, the Recipient agrees to be bound by, and to
comply with, the provisions and requirements of the federal Single Audit Act of 1984, Office of
Management and Budget (OMB)Circular No. A-133, and updates or revisions, thereto, including but not
limited to Section 21O(a)-(d). (Pub. L. 98-502.)
3.9 Accounting and Auditing Standards.
The Recipient must maintain project accounts according to Generally Accepted Accounting Principles
(GAAP) as issued by the GovernmentalAccounting Standards Board (GASB). The Recipient shall
maintain GAAP-compliant project accounts, including GAAP requirements relating to the reporting of
infrastructure assets.
3.10 Other Assistance.
lf federal or state funding for Project Costs is made available to the Recipient from sources other than this
Agreement, the Recipient may retain such funding up to an amount which equals the Recipient's local
share of Project Costs. To the extent allowed by requirements of other funding sources, any funding
received in excess of the Recipient's local share, not to exceed the total amount funded under this
Agreement, shall be remitted to the State Water Board.
ARTICLE IV - RESERVED
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City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
5.1 Amendment.
ARTICLEV MISCELLANEOUSPROVISIONS
No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed
by the parties and approved as required. No oral understanding or agreement not incorporated in this
Agreement is binding on any of the parties.
5.2 Assignability.
This Agreement is not assignable by the Recipient, either in whole or in part, without the consent of the
State Water Board in the form of a formal written amendment to this Agreement.
5.3 Bonding.
Where contractors are used, the Recipient shall not authorize construction to begin until each contractor
has furnished a performance bond in favor of the Recipient in the following amounts: faithful performance
(100%) of contract value; labor and materials (100%) of contract value. This requirement shall not apply
to any contract for less than $20,000.00.
5.4 Competitive Bidding
Any construction contracts related in any way to the Project shall be let by competitive bid procedures
which assure award of such contracts to the lowest responsible bidders. Recipient shall adhere to any
applicable state or local ordinance for competitive bidding and applicable labor laws.
Recipient shall not award a construction contract until a summary of bids and identification of the selected
lowest responsible bidder is submitted to and approved in writing by the Division. Recipient must provide
a full explanation if Recipient is proposing to award a construction contract to anyone other than the
lowest responsible bidder.
5.5 Compliance with Law, Regulations, etc.
(a) The Recipient agrees that it will, at all times, comply with and require its contractors and
subcontractors to comply with all applicable federal and state laws, rules, guidelines, regulations,
and requirements. Without limitation of the foregoing, the Recipient agrees that, to the extent
applicable, the Recipient will:
(1) Comply with the provisions of the adopted environmental mitigation plan, if any, for the term
of this Agreement;
(2) Comply with the State Water Board's Policy;
(3) Comply with and require compliance with the list of state laws attached as Exhibit H.
(4) Comply with and require its contractors and subcontractors on the Project to comply with
federal DBE requirements; and
(5) Comply with and require its contractors and subcontractors to comply with the list of federal
laws attached as Exhibit E.
5.6 Conflict of lnterest.
The Recipient certifies that its owners, officers, directors, agents, representatives, and employees are in
compliance with applicable state and federal conflict of interest laws.
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City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
5.7 Damages for Breach Affecting Tax-Exempt Status or Federal Compliance
ln the event that any breach of any of the provisions of this Agreement by the Recipient shall result in the
loss of tax-exempt status for any bonds of the State or any subdivision or agency thereof, including Bonds
issued on behalf of the State Water Board, or if such breach shall result in an obligation on the part of the
State or any subdivision or agency thereof to reimburse the federal government by reason of any
arbitrage profits, the Recipient shall immediately reimburse the State or any subdivision or agency thereof
in an amount equal to any damages paid by or loss incurred by the State or any subdivision or agency
thereof due to such breach. ln the event that any breach of any of the provisions of this Agreement by
the Recipient shall result in the failure of Project Funds to be used pursuant to the provisions of this
Agreement, or if such breach shall result in an obligation on the part of the State or any subdivision or
agency thereof to reimburse the federal government, the Recipient shall immediately reimburse the State
or any subdivision or agency thereof in an amount equal to any damages paid by or loss incurred by the
State or any subdivision or agency thereof due to such breach.
5.8 Disputes.
(a) The Recipient may appeal a staff decision within 30 days to the Deputy Director of the
Division or designee, for a final Division decision. The Recipient may appeal a final
Division decision to the State Water Board within 30 days. The Office of the Chief
Counsel of the State Water Board will prepare a summary of the dispute and make
recommendations relative to its final resolution, which will be provided to the State Water
Board's Executive Director and each State Water Board Member. Upon the motion of any
State Water Board Member, the State Water Board will review and resolve the dispute in
the manner determined by the State Water Board. Should the State Water Board
determine not to review the final Division decision, this decision will represent a final
agency action on the dispute.
(b) This clause does not preclude consideration of legal questions, provided that nothing herein
shall be construed to make final the decision of the State Water Board, or any official or
representative thereof, on any question of law.
(c) Recipient shall continue with the responsibilities under this Agreement during any dispute.
5.9 Governing Law.
This Agreement is governed by and shall be interpreted in accordance with the laws of the State of
California.
5.10 lncome Restrictions.
The Recipient agrees that any refunds, rebates, credits, or other amounts (including any interest thereon)
accruing to or received by the Recipient under this Agreement shall be paid by the Recipient to the State,
to the extent that they are properly allocable to costs for which the Recipient has been reimbursed by the
State under this Agreement.
5.11 lndemnification and State Reviews.
The parties agree that review or approval of Project plans and specifications by the State Water Board is
for administrative purposes only and does not relieve the Recipient of its responsibility to properly plan,
design, construct, operate, and maintain the Project. To the extent permitted by law, the Recipient
agrees to indemnify, defend, and hold harmless the State Water Board, the Bank, and anytrustee, and
their officers, employees, and agents for the Bonds, if any (collectively, "lndemnified Persons"), against
any loss or liability arising out of any claim or action brought against any lndemnified Persons from and
14
City of Fresno
Agreement No.: D1 5-02030
Project No.:'1 000276-001 C
against any and all losses, claims, damages, liabilities, or expenses, of every conceivable kind, character,
and nature whatsoever arising out of, resulting from, or in any way connected with (1) the System or the
Project or the conditions, occupancy, use, possession, conduct, or management of, work done in or
about, or the planning, design, acquisition, installation, or construction, of the System or the Project or
any part thereof; (2) the carrying out of any of the transactions contemplated by this Agreement or any
related document; (3) any violation of any applicable law, rule or regulation, any environmental law
(including, without limitation, the Federal Comprehensive Environmental Response, Compensation and
Liability Act, the Resource Conservation and Recovery Act, the California Hazardous Substance Account
Act, the Federal Water Pollution Control Act, the Clean Air Act, the Toxic Substances Control Act, the
Occupational Safety and Health Act, the Safe Drinking Water Act, the California Hazardous Waste
Control Law, and California Water Code Section 13304, and any successors to said laws), rule or
regulation or the release of any toxic substance on or near the System; or (4) any untrue statement or
alleged untrue statement of any material fact or omission or alleged.omission to state a material fact
necessary to make the statements required to be stated therein, in light of the circumstances under which
they were made, not misleading with respect to any information provided by the Recipient for use in any
disclosure document utilized in connection with any of the transactions contemplated by this Agreement.
To the fullest extent permitted by law, the Recipient agrees to pay and discharge any judgment or award
entered or made against lndemnified Persons with respect to any such claim or action, and any
settlement, compromise or other voluntary resolution. The provisions of this section shall survive the term
of this Agreement and the discharge of the Recipient's Obligation hereunder.
5.12 lndependentActor.
The Recipient, and its agents and employees, if any, in the performance of this Agreement, shall act in an
independent capacity and not as officers, employees, or agents of the State Water Board.
5.13 Financial Disclosure.
Disclosure of Financial lnformation, Operating Data, and Other lnformation. The Recipient
covenants to furnish such financial, operating and other data pertaining to the Recipient as may
be requested by the State Water Board to: (i) enable the State Water Board to cause the
issuance of Bonds and provide for security therefor; or (ii) enable any undenvriter of Bonds
issued for the benefit of the State Water Board to comply with Rule 15c2-12(b)(5). Upon request,
the Recipient further covenants to provide the State Water Board with copies of all continuing
disclosure reports and materials concerning the Recipient required by the terms of any financing
other than this Agreement and to submit such reports to the State Water Board at the same time
such reports are submitted to any dissemination agent, trustee, nationally recognized municipal
securities information repository, the Municipal Securities Rulemaking Board's Electronic
Municipal Market Access (EMMA) website or other person or entity.
5.14 Non-Discrimination Clause.
(a) During the performance of this Agreement, Recipient and its contractors and subcontractors
shall not unlawfully discriminate, harass, or allow harassment against any employee or
applicant for employment because of sex, race, color, ancestry, religious creed, national
origin, sexual orientation, physical disability (including HIV and AIDS), mental disability,
medical condition (cancer), age (over 40), marital status, denial of family care leave, ôr
genetic information, gender, gender identity, gender expression, or military and veteran
status.
(b) The Recipient, its contractors, and subcontractors shall ensure that the evaluation and
treatment of their employees and applicants for employment are free from such
discrimination and harassment.
15
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
(c) The Recipient, its contractors, and subcontractors shall comply with the provisions of the
Fair Employment and Housing Act and the applicable regulations promulgated thereunder.
(Gov. Code, S12990, subds. (a)-(f) et seq.; Cal. Code Regs., tit. 2, S 7285 et seq.) Such
regulations are incorporated into this Agreement by reference and made a part hereof as if
set forth in full.
(d) The Recipient, its contractors, and subcontractors shall give written notice of their
obligations under this clause to labor organizations with which they have a collective
bargaining or other agreement.
(e) The Recipient shall include the nondiscrimination and compliance provisions of this clause
in all subcontracts to perform work under the Agreement.
5.15 No Third Party Rights.
The parties to this Agreement do not create rights in, or grant remedies to, any third party as a beneficiary
of this Agreement, or of any duty, covenant, obligation, or undertaking established herein.
5.16 Operation and Maintenance; lnsurance.
The Recipient agrees to sufficiently and properly staff, operate and maintain all portions of the System
during its useful life in accordance with all applicable state and federal laws, rules, and regulations.
The Recipient will procure and maintain or cause to be maintained insurance on the System with
responsible insurers, or as part of a reasonable system of self-insurance, in such amounts and against
such risks (including damage to or destruction of the System) as are usually covered in connection with
systems similar to the System. Such insurance may be maintained by the maintenance of a self-
insurance plan so long as any such plan provides for (i) the establishment by the Recipient of a separate
segregated self-insurance fund funded in an amount determined (initially and on at least an annual basis)
by an independent insurance consultant experienced in the field of risk management employing accepted
actuarial techniques and (ii) the establishment and maintenance of a claims processing and risk
management program.
ln the event of any damage to or destruction of the System caused by the perils covered by such
insurance, the net proceeds thereof shall be applied to the reconstruction, repair or replacement of the
damaged or destroyed portion of the System. The Recipient shall begin such reconstruction, repair or
replacement as expeditiously as possible, and shall pay out of such net proceeds all costs and expenses
in connection with such reconstruction, repair or replacement so that the same shall be completed and
the System shall be free and clear of all claims and liens. lf such net proceeds are insufficient to enable
the Recipient to pay all remaining unpaid principal portions of the repayments, if any, the Recipient shall
provide additional funds to restore or replace the damaged portions of the System.
Recipient agrees that for any policy of general liability insurance concerning the construction of the
Project, it will cause, and will require its contractors and subcontractors to cause, a certificate of insurance
to be issued showing the State Water Board, its officers, agents, employees, and servants as additional
insured; and shall provide the Division with a copy of all such certificates prior to the commencement of
construction of the Project.
5.17 Permits, Subcontracting, and Remedies.
The Recipient shall comply in all material respects with all applicable federal, state and local laws, rules
and regulations. Recipient shall procure all permits, licenses and other authorizations necessary to
accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices
necessary and incidental to the due and lawful prosecution of the work. Signed copies of any such
permits or licenses shall be submitted to the Division before construction begins.
16
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1000276-001 C
5.18 Prevailing Wages.
The Recipient agrees to be bound by all applicable provisions of State Labor Code regarding prevailing
wages. The Recipient shall monitor all agreements subject to reimbursement from this Agreement to
ensure that the prevailing wage provisions of the State Labor Code are being met. ln addition, the
Recipient agrees to comply with the provisions of Exhibit G (Davis-Bacon).
5.19 Public Funding.
This Project is publicly funded. Any service provider or contractor with which the Recipient contracts must
not have any role or relationship with the Recipient, that, in effect, substantially limits the Recipient's
ability to exercise its rights, including cancellation rights, under the contract, based on all the facts and
circumstances.
5.20 Recipient's Responsibility for Work.
The Recipient shall be responsible for all work and for persons or entities engaged in work performed
pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and
providers of services. The Recipient shall be responsible for any and all disputes arising out of its
contracts for work on the Project. The State Water Board will not mediate disputes between the Recipient
and any other entity concerning responsibility for performance of work.
5.21 Related Litigation.
Under no circumstances may a Recipient use funds from any disbursement under this Agreement to pay
costs associated with any litigation the Recipient pursues against the State Water Board or any Regional
Water Quality Control Board. Regardless of the outcome of any such litigation, and notwithstanding any
conflicting language in this Agreement, the Recipient agrees to complete the Project funded by this
Agreement or to repay all of the disbursed funds plus interest.
5.22 Rights in Data.
The Recipient agrees that all data, plans, drawings, specifications, reports, computer programs, operating
manuals, notes, and other written or graphic work produced in the performance of this Agreement are
subject to the rights of 'the State as set forth in this section. The State shall have the right to reproduce,
publish, and use all such work, or any part thereof, in any manner and for any purposes whatsoever and
to authorize others to do so. lf any such work is copyrightable, the Recipient may copyright the same,
except that, as to any work which is copyrighted by the Recipient, the State reserves a royalty-free,
nonexclusive, and irrevocable license to reproduce, publish, and use such work, or any part thereof, and
to authorize others to do so, and to receive electronic copies from the Recipient upon request.
5.23 State Water Board Action; Costs and Attorney Fees.
The Recipient agrees that any remedy provided in this Agreement is in addition to and not in derogation
of any other legal or equitable remedy available to the State Water Board as a result of breach of this
Agreement by the Recipient, whether such breach occurs before or after completion of the Project, and
exercise of any remedy provided by this Agreement by the State Water Board shall not preclude the State
Water Board from pursuing any legal remedy or right which would othen¡uise be available. ln the event of
litigation between the parties hereto arising from this Agreement, it is agreed that each party shall bear its
own costs and attorney fees.
17
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
5.24 Termination; lmmediate Acceleration; lnterest.
(a) This Agreement may be terminated by written notice during construction of the Project, or
thereafter at any time prior to complete satisfaction of the Obligation by the Recipient, at the
option of the State Water Board, upon violation by the Recipient of any material provision of this
Agreement after such violation has been called to the attention of the Recipient and after failure
of the Recipient to bring itself into compliance with the provisions of this Agreement within a
reasonable time as established by the Divislon.
(b) ln the event of such termination, the Reciplent agrees, upon demand, to immediately repay to
the State Water Board an amount equal to Project Funds disbursed hereunder, accrued interest,
penalty assessments due, and Additional Payments. ln the event of termination, interest shall
accrue on all amounts due at the highest legal rate of interest from the date that notice of
termination is mailed to the Recipient to the date all monies due have been received by the State
Water Board.
(c) Where the Recipient is a private entity that has been determined to have violated an applicable
prohibition in the Prohibition Statement below or has an employee who is determined by USEPA
to have violated an applicable prohibition in the Prohibition Statement below that is either
associated with performance under this aware or imputed to the Recipient using the standards
and due process for imputing the conduct of an individual to an organization pursuant to 2 CFR
Part 180, the Recipient acknowledges and agrees that any funds disbursed under this
Agreement may become immediately due and payable and that penalties up to the amount of
the federal capitalization grant may be due by the Recipient to the State Water Board, in addition
to any other criminal or civil penalties that may become due. The Recipient, its employees, its
contractors, and any subrecipients or subcontractors may not engage in trafficking in persons,
procure a commercial sex act, or use forced labor.
5.25 Timeliness.
Time is of the essence in this Agreement.
5.26 UnenforceableProvision.
ln the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the
parties agree that all other provisions of this Agreement have force and effect and shall not be affected
thereby.
5.27 Useful Life.
The Recipient agrees that the economic useful life of the Project, commencing at Project Completion, is
at least equal to the term of this Agreement, as set forth in Exhibit B hereto.
5.28 Venue.
The State Water Board and the Recipient hereby agree that any action arising out of this Agreement shall
be filed and maintained in the Superior Court in and for the County of Sacramento, California.
5.29 Waiver and Rights of the State Water Board.
Any waiver of rights by the State Water Board with respect to a default or other matter arising under the
Agreement at any time shall not be considered a waiver of rights with respect to any other default or
matter.
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City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
Any rights and remedies of the State Water Board provided for in this Agreement are in addition to any
other rights and remedies provided by law.
19
City of Fresno
Agreement No : D15-02030
Project No.: 1 000276-001 C
lN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.
CITY OF FRESNO:
ATTEST:
woNNE SPENCE, Clt¡lo
CITY CLERK
By 4a¿¿tvr+
DePUtY ¡ç þn+t -U '¡'4cpt-'t'Z
ú tt llQ
STATE WATER RESOURCES CO
Deputy Director
20
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT A- SCOPE OF WORK & INCORPORATED DOCUMENTS
1 . The Recipient agrees to start construction no later than the estimated date of September 21 ,2015.
2. The Completion of Construction date is hereby established as December 31,2054.
3. The Recipient agrees to ensure that its final Request for Disbursement is received by the Division no
later than six months after Completion of Construction, unless prior approval has been granted by the
Division. Otherwise, the undisbursed balance of this Agreement will be deobligated.
4. lncorporated by reference into this Agreement are the following documents:
(a) the Final Plans & Specifications, dated September 10,2015, which are the basis for the
construction contract to be awarded by the Recipient;
(b) the Drinking Water System Permit No. 03-23-12P-007;
5. Scope of Work. The selected construction project is a consolidation with the City of Fresno that will
provide a reliable and sustainable water supply for the Orange Center School. The project will resolve
problems with water pressure, capacity and quality, and will deliver water that meets the drinking
water standards. The project includes: 6,440 ft. of 14-inch transmission pipeline along both Cherry
Ave and East Ave, 2,676 11. of 16-inch transmission pipeline along Central Ave, a master meter,
backflow preventer, and a service connection pipeline between the School and Cherry Ave.
Additionally, faucets/fixtures and plumbing replacement on School property will be provided to
mitigate the lead exceedance.
A-1
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT B - PROJECT FINANCING AMOUNT
1. Estimated Reasonable Cost. The estimated reasonable cost of the total Project, including associated
planning and design costs, is two million nine hundred thirty-two thousand six hundred dollars and no
cents ($2,932,600).
2. Project Funding. Subject to the terms of this Agreement, the State Water Board agrees to provide
Project Funds in the amount of up to two million nine hundred thirty-two thousand six hundred dollars
and no cents ($?,932,600). Of this amount, contingent on section 4 of this Exhibit, the estimated
amount of principal that will be due to the State Water Board under this Agreement is Zero dollars and
no cents ($0.00¡.
3. Payment, lnterest Rate, and Charges. Repayment of principal and interest hereunder is waived,
subject to the termination provisions hereunder.
4. Principal Forgiveness. Contingent on the Recipient's performance of its obligations under this
Agreement, the State Water Board agrees to forgive up to two million nine hundred thirty-two thousand
six hundred dollars and no cents ($2,932,600).
5. The term of this agreement is from September 21, 2015 to December 31, 2054.
6. Budget costs are contained in the Project Cost Table below:
Construction costs
Item Description Budqet Amount
Gonstruction - Water Pipeline $ 1.342.000.00
Gonstruction - Onsite Water Svstem $ 430,000.00
Gonnection Fees and Permits $ 40,000.00
Desion and Enoineerino Services $ 199,200.00
Gonstruction M anaqement s 139.400.00
Proiect Manaoement $ 220,000.00
CEQA (Proiect Level)$ 59.800.00
SRF Aoolication Develooment $ 39,800,00
Water Qualitv VerificationM/ell Abandon $ 15.000.00
Administration and Leoal $ 74,600.00
Gontinqencv $ 372.800.00
Total $ 2.932,600.00
Construction costs incurred prior to the Eligible Start Date on the cover page of this
Agreement are not eligible for reimbursement. Failure to begin construction according
to the timelines set forth in Exhibit A may require the Recipient to repay to the State
Water Board all disbursed Project Funds, including planning and design allowances.
B-1
City of Fresno
Agreement No.: D1 5-02030
Project No.: I 000276-001 C
EXHIBIT C -RESERVED
c-1
Asreementn,::ttilffi!8
Project No.: 1 000276-001 C
EXHIBIT D _ SPECIAL CONDITIONS
Recipient acknowledges and agrees to the following special conditions:
Technical:
1. The Recipient shall complete construction of the project no later than December 31,2018.
2. The Recipient shall submit quarterly progress reports to the State's Project Manager and the
Division of Drinking Water Fresno District Office ("District Office")until the Project is certified
complete.
3. The Recipient shall notify the State's Project Manager and the District Office when Project is 50%
and 100% complete.
4. The Recipient shall submit a copy of the Final Plans and Specifications to the State's Project
Manager and the District Office for review and approval prior to bid advertisement.
5. The Recipient shall submit a copy of the bid documents and bid results for all phases of the
project to the State's Project Manager and the District Office for review and approval prior to bid
advertisement and awarding of any contract.
Environmental:
1. The Recipient shall implement the mitigation measures identified in the lnitial Study/Mitigated
Negative Declaration (lS/MND)and Mitigation, Monitoring, and Reporting Program (MMRP), titled
Orange Center School District Water Consolidation Project, dated June 2015 (SCH#2014051033)
prepared for the project. Appendix A of the IS/MND is the MMRP.
2. The Recipient shall implement the mitigation measures identified in the USFWS Section 7
concurrence letter, dated August 3, 2015.
Financial:
None
D-1
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT E _ PROGRAMMATIC CONDITIONS & CROSS-CUTTERS
The Recipient agrees to comply with the following federal conditions:
A. FederalAward Conditions
1. American lron and Steel. Unless the Recipient has obtained a waiver from USEPA on file with
the State Water Board or unless this Project is not a project for the construction, alteration,
maintenance or repair of a public water system or treatment work, the Recipient shall not
purchase "iron and steel products" produced outside of the United States on this Project. Unless
the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this
Project is not a project for the construction, alteration, maintenance or repair of a public water
system or treatment work, the Recipient hereby certifies that all "iron and steel products" used in
the Project were or will be produced in the United States. For purposes of this section, the term
"iron and steel products" means the following products made primarily of iron or steel: lined or
unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges,
pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction
materials. "Steel" means an alloy that includes at least 50 percent iron, between .02 and 2
percent carbon, and may include other elements.
2. Wage Rate Requirements (Davis-Bacon). The Recipient shall include in full the language
provided in Exhibit G of this Agreement in all contracts and subcontracts.
3. Signage Requirements. The Recipient shall comply with the USEPA's Guidelines for Enhancing
Public Awareness of SRF Assistance Agreements, dated June 3, 2015, as othen¡yise specified in
this Agreement.
4. Public or Media Events. The Recipient shall notify the State Water Board and the EPA contact as
, provided in the notice provisions of this Agreement of public or media events publicizing the
accomplishment of significant events related to this Project and provide the opportunity for
attendance and participation by federal representatives with at least ten (10)working days'notice.
5. EPA General Terms and Conditions (USEPA GTCs). The Recipient shall comply with applicable
EPA general terms and conditions found at htto://www.eoa.qov/oqd, including but not limited to
the following:
a. DUNS. No Recipient may receive funding under this Agreement unless it has provided
its DUNS number to the State Water Board.
b. Executive Compensation. The Recipient shall report the names and total compensation
of each of its five most highly compensated executives for the preceding completed fiscal
year, as set forth in the USEPA GTCs.
c. Suspension and Debarment. The Recipient shall comply with Subpart C of 2 CFR Part
180 and shall ensure that its contracts include compliance. Contractors, Subcontractors,
Debarment and Suspension, Executive Order 12549;2 CFR Part '180; 2 CFR Part 1532.
The Recipient shall not subcontract with any party who is debarred or suspended or
otherwise excluded from or ineligible for participation in federal assistance programs
under Executive Order 12549, "Debarment and Suspension". The Recipient shall not
subcontract with any individual or organization on USEPA's List of Violating Facilities.
The Recipient shall certify that it and its principals, and shall obtain certifications from its
contractors that they and their principals:
E-1
d
City of Fresno
Agreement No.: D1 5-02030
Project No.: I 000276-001 C
EXHIBIT E - PROGRAMMATIC CONDITIONS & CROSS-CUTTERS
1. Are not presently debarred, suspended, proposed for debarment,
declared ineligible, or voluntarily excluded by any federal
department or agency;
2. Have not within a three (3) year period preceding this Agreement
been convicted of or had a civil judgment rendered against them
for commission of fraud or a criminal offense in connection with
obtaining, attempting to obtain, or performing a public (federal,
state or local) transaction or contract under a public transaction;
violation of federal or state antitrust statutes or commission of
embezzlement, theft, forgery, bribery, falsification or destruction
of records, making false statements, or receiving stolen property;
3. Are not presently indicted for or otherwise criminally or civilly
charged by a governmental entity (federal, state or local) with
commission of any of the offenses enumerated in paragraph (b)
of this certification; and
4. Have not within a three (3) year period preceding this
application/proposal had one or more public transactions
(federal, state or local) terminated for cause or default.
5. Suspension and debarment information can be accessed at
htto://www.sam.qov . The Recipient represents and warrants
that it has or will include a term or conditions requiring
compliance with this provision in all of its contracts and
subcontracts under this Agreement. The Recipient
acknowledges that failing to disclose the information as required
at 2 CFR 180.335 may result in the termination, delay or
negation of this Agreement, or pursuance of legal remedies,
including suspension and debarment.
Conflict of lnterest. Within 10 days, the Recipient shall disclose to the State Water Board
any potential conflict of interest consistent with section 4.0 of with USEPA's Revised
lnterim Financial Assistance Conflict of lnterest Policy at
tm . A conflict of interest may result in disallowance of costs.
Copyright. USEPA and the State Water Board have the right to reproduce, publish, use
and authorize others to reproduce, publish and use copyrighted works or other data
developed under this assistance agreement.
Credit. The Recipient agrees that any reports, documents, publications or other materials
developed for public distribution supported by this Agreement shall contain the following
statement:
. "This project has been funded wholly or in part by the United States
Environmental Protection Agency and the State Water Resources Control Board.
The contents of this document do not necessarily reflect the views and policies of
the Environmental Protection Agency or the State Water Resources Control
Board, nor does the EPA or the Board endorse trade names or recommend the
use of commercial products mentioned in this document."
f.
E-2
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT E _ PROGRAMMATIC CONDITIONS & CROSS-CUTTERS
g. Electronic and lnformation Technology Accessibility. The Recipient is encouraged to
follow guidelines established under Section 508 of the Rehabilitation Act, codified at 36
CFR Part 1194, with respect to enabling individuals with disabilities to participate in its
programs supported by this Project.
h. Trafficking in Persons. The Recipient, its employees, contractors and subcontractors and
their employees may not engage in severe forms of trafficking in persons during the term
of this Agreement, procure a commercial sex act during the term of this Agreement, or
use forced labor in the performance of this Agreement. The Recipient must include this
provision in its contracts and subcontracts under this Agreement. The Recipient must
inform the State Water Board immediately of any information regarding a violation of the
foregoing. The Recipient understands that failure to comply with this provision may
subject the State Water Board to loss of federal funds in the amount of $101,065,000.
The Recipient agrees to compensate the State Water Board for any such funds lost due
to its failure to comply with this condition, or the failure of its contractors or subcontractors
to comply with this condition. The State Water Board may unilaterally terminate this
Agreement and full payment will be due immediately, if a Recipient or subrecipient that is
a private entity is determined to have violated the foregoing. Trafficking Victims
Protection Act of 2000.
B. Super Cross-Cutters - Civil Rights Obligations. The Recipient must comply with the following
federal non-discrimination requirements:
a. Title Vl of the Civil Rights Act of 1964, which prohibits discrimination based on race,
color, and national origin, including limited English proficiency (LEP). (EPH XC HB)b. Section 504 of the Rehabilitation Act of 1973, which prohibits discrimination against
persons with disabilities. (EPH XC HB)c. The Age Discrimination Act of 1975, which prohibits age discrimination. (EPH XC HB)d. 40 CFR Parl7, as it relates to the foregoing (EPH XC HB)
Cross-Cutters
Executive Order No. 11246. The Recipient shall include in its contracts and subcontracts
related to the Project the following provisions:
"During the pedormance of this contrac| the contractor agrees as follows:
"(l) The contractor will not discriminate against any employee or applicant for employment because of
race, creed, color, or national origin. The contractor will take ffirmative action to ensure that
applicants are employed, and that employees are treated during employment, without regard to their
race, creed, color, or national origin. Such action shall include, but not be limited to thefollowing:
employment, upgrading, demotion, or transfer; recruitment or recruitment advertísing; layoff or
termination; rates of pay or otherþrms of compensation; and selectionþr training, including
apprenticeship. The contraclor agrees to post in conspicuous places, available to employees and
applicants for employment, notices to be provided by the contracting fficer settingforth the provisions
of this nondiscrímination clause.
"(2) 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 considerationfor employment without
regard to race, creed, color, or national origin
C.
1.
E-3
2
3
4
E
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT E - PROGRAMMATIC CONDITIONS & CROSS-CUTTERS
"(3) The contractor will send to each labor union or representative of workers with which he has a
collective bargaining øgreement or other contract or understanding, a notice, to be provided by the
agency contracting fficer, advising the labor union or workers' representative of the contractor's
commihnents under Section 202 of Executive Order No. I I 246 of September 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 Order No. I1246 of Sept. 24, 1965, and
of the rùles, regulations, and relevant orders of the Secretary of Labor.
"(5) The controctor will furnish all information and reports required by Executive Order No. I 1246 of
September 24, I 965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuctnt
thereto, and will permit øccess to his books, records, and accounts by the contracting agency and the
Secretary of Laborþr purposes of investigation to ascertain compliance with such rules, regulations,
and orders.
"(6) In the event of the contractor's noncompliønce with the nondiscrimination clauses of this contract
or with any of such rules, regulations, or orders, this conlract may be cancelled, terminated or
suspended in whole or in part and the contractor may be declared ineligible for further Government
contractsinaccordancewithproceduresauthorizedinExecutiveOrderNo. II246ofSept24,1965,
and such other sanctions may be imposed and remedies invoked as provided in Executive Order No.
I I 246 of September 24, I 965, or by rule, regulation, or order of the Secretary of Labor, or as
otherwise províded by law.
"(7) The contractor will include the provisions ofParagraphs (l) through (7) in every subcontract or
purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued
pursuanttoSection204ofExecutiveOrderNo. Il246ofSept.24, 1965,sothatsuchprovisionswillbe
binding upon each subcontractor or yendor. The contraclor will take such action with respect to any
subcontract or purchase order øs the contracting agency may direct as a means of enforcing such
provisions including sanctionsþr noncompliance: Provided, however, That in the event the contractor
becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such
direction by the contracting agency, the contractor may request the United States to enter into such
litigation to protect the interests of the United States."
Disadvantaged Business Enterprises (40 CFR Part 33). The Recipient agrees to comply with the
requirements of USEPA's Program for Utilization of Small, Minority and Women's Business
Enterprises. The DBE rule can be accessed at www.eoa.qov/osbp . The Recipient shall comply
with, and agrees to require its prime contractors to comply with 40 CFR Section 33.301, and
retain all records documenting compliance with the six good faith efforts. (lUP)
Procurement Prohibitions under Section 306 of the Clean Air Act and Section 508 of the Clean
Water Act, including Execut¡ve Order 11738, Administration of the Clean Air Act and the Federal
Water Pollution Control Act with Respect to Federal Contracts; Grants, or Loans; 42 USC S 7606;
33 USC S 1368. Except where the purpose of this Agreement is to remedy the cause of the
violation, the Recipient may not procure goods, services, or rhaterials from suppliers listed on the
Excluded Parties Listing System: http://epls.arnet.qov/ .
Uniform Relocation and Real Property Acquisition Policies Act, Pub. L. 91-646, as amended; 42
USC 554601-4655. The Recipient must comply with the Act's implêmenting regulations at
49 CFR 24.101through 24.105.
Preservation of Open Competition and Government Neutrality Towards Government Contractors'
Labor Relations on Federaland Federally Funded Construction Projects, EO 13202, as amended
E-4
City of Fresno
Agreement No.: D15-02030
Project No.: 1 000276-001 C
EXHIBIT E - PROGRAMMATIC CONDITIONS & CROSS-CUTTERS
by EO 13208. The Recipient must ensure that bid specifications, project agreements, and other
controlling documents for construction contracts do not require or prohibit agreements with labor
organizations. Any construction manager must not otherwise discriminate against bidders,
offerors, contractors, or subcontractors for entering into, or refusing to enter into, agreements with
labor organizations.
Debarment and Suspension Executive Order No. 12549 (1986). The Recipient certifies
that it will not knowingly enter into a contract with anyone who is ineligible under the 40
CFR Part 32 to participate in the Project. Contractors on the Project must provide a
similar certification prior to the award of a contract and subcontractors on the project
must provide the general contractor with the certification prior to the award of any
subcontract.
EÃ
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT F - RESERVED
F-1
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT G - DAVIS-BACON REQUIREMENTS
For purposes of this Exhibit, "subrecipient" or "sub recipient" means the Recipient as defined in this
Agreement.
For purposes of this Exhibit only, "recipient" means the State Water Board.
l. Requirements For Sub recipients That Are Governmental Entities:
lf a sub recipient has questions regarding when Davis-Bacon (DB) applies, obtaining the correct DB wage
determinations, DB provisions, or compliance monitoring, it may contact the State Water Board. The
recipient or sub recipient may also obtain additional guidance from DOL's web site at
http ://www. dol. qov/whd/
L Applicability of the Davis- Bacon (DB) prevailing wage requirements.
DB prevailing wage requirements apply to the construction, alteration, and repair of treatment works
carried out in whole or in part with assistance made available by a State water pollution control revolving
fund and to any construction project carried out in whole or in part by assistance made available by a
drinking water treatment revolving loan fund. lf a sub recipient encounters a unique situation at a site that
presents uncertainties regarding DB applicability, the sub recipient must discuss the situation with the
recipient State before authorizing work on that site.
2. Obtaining Wage Determinations.
(a) Sub recipients shall obtain the wage determination for the locality in which a covered activity subject to
DB will take place prior to issuing requests for bids, proposals, quotes or other methods for soliciting
contracts (solicitation) for activities subject to DB. These wage determinations shall be incorporated into
solicitations and any subsequent contracts. Prime contracts must contain a provision requiring that
subcontractors follow the wage determination incorporated into the prime contract.
(i)While the solicitation remains open, the sub recipient shall monitor www.wdol.qov weekly to ensure
that the wage determination contained in the solicitation remains current. The sub recipients shall amend
the solicitation if DOL issues a modification more than 10 days prior to the closing date (i.e. bid opening)
for the solicitation. lf DOL modifies or supersedes the applicable wage determination less than 10 days
prior to the closing date, the sub recipients may request a finding from the State recipient that there is not
a reasonable time to notify interested contractors of the modification of the wage determination. The State
recipient will provide a report of its findings to the sub recipient.
(ii) lf the sub recipient does not award the contract within g0 days of the closure of the solicitation, any
modifications or supersedes DOL makes to the wage determination contained in the solicitation shall be
effective unless the State recipient, at the request of the sub recipient, obtains an extension of the 90 day
period from DOL pursuant to 29 CFR 1.6(c)(3)(iv). The sub recipient shall monitor www.wdol.gov on a
weekly basis if it does not award the contract within 90 days of closure of the solicitation to ensure that
wage determinations contained in the solicitation remain current.
(b) lf the sub recipient carries out activity subject to DB by issuing a task order, work assignment or
similar instrument to an existing contractor (ordering instrument) rather than by publishing a solicitation,
the sub recipient shall insert the appropriate DOL wage determination from
www.wdol.gov into the ordering instrument.
(c) Sub recipients shall review all subcontracts subject to DB entered into by prime contractors to verify
that the prime contractor has required its subcontractors to include the applicable wage determinations.
G-1
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1000276-001 C
EXHIBIT G - DAVIS-BACON REQUIREMENTS
(d) As provided in 29 CFR 1.6(f), DOL may issue a revised wage determination applicable to a sub
recipient's contract after the award of a contract or the issuance of an ordering instrument if
DOL determines that the sub recipient has failed to incorporate a wage determination or has used a wage
determination that clearly does not apply to the contract or ordering instrument. lf this occurs, the sub
recipient shall either terminate the contract or ordering instrument and issue a revised solicitation or
ordering instrument or incorporate DOL's wage determination retroactive to the beginning of the contract
or ordering instrument by change order. The sub recipient's contractor must be compensated for any
increases in wages resulting from the use of DOL's revised wage determination.
3. Contract and Subcontract provisions.
(a) The Recipient shall insure that the sub recipient(s) shall insert in full in any contract in excess of
$2,000 which is entered into for the actual construction, alteration and/or repair, including painting and
decorating, of a treatment work under the CWSRF or the DWSRF - financed in whole or in part from
Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by
pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a
different meaning is expressly indicated), and which is subject to the labor standards provisions of any of
the acts listed in $ 5.1 or -FY 2015 Water Resource Reform and Development Act, the following clauses:
('1) Minimum wages.
(i)All laborers and mechanics employed or working upon the site of the work will be paid unconditionally
and not less often than once a week, and without subsequent deduction or rebate on any account (except
such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the
Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash
equivalents thereof) due at time of payment computed at rates not less than those contained in the wage
determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of
any contractual relationship which may be alleged to exist between the contractor and such laborers and
mechanics.
Contributions made or costs reasonably anticipated for bona fide fringe benefits under section
1(bX2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such
laborers or mechanics, subject to the provisions of paragraph (a)(1)(iv) of this section; also, regular
contributions made or costs incurred for more than a weekly period (but not less often than quarterly)
under plans, funds, or programs which cover the particular weekly period, are deemed to be
constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid
the appropriate wage rate and fringe benefits on the wage determination for the classification of work
actually performed, without regard to skill, except as provided in $ 5.5(a)(a). Laborers or mechanics
performing work in more than one classification may be compensated at the rate specified for each
classification for the time actually worked therein: Provided that the employer's payroll records accurately
set forth the time spent in each classification in which work is performed. The wage determination
(including any additional classification and wage rates conformed under paragraph (a)(1)(ii)of this
section) and the Davis-Bacon poster (WH-1321) shall be posted at all times by the contractor and its
subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by
the workers. Sub recipients may obtain wage determinations from the U.S. Department of Labor's web
site,www.dol.gov.
(ii)(A) The sub recipient(s), on behalf of EPA, shall require that any class of laborers or mechanics,
including helpers, which is not listed in the wage determination and which is to be employed underthe
contract shall be classified in conformance with the wage determination.
The State award official shall approve a request for an additional classification and wage rate and fringe
benefits therefore only when the following criteria have been met:
G-2
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT G - DAVIS-BACON REQUIREMENTS
(1) The work to be performed by the classification requested is not performed by a classification in the
wage determination; and
(2) The classification is utilized in the area by the construction industry; and
(3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to
the wage rates contained in the wage determination.
(B) lf the contractor and the laborers and mechanics to be employed in the classification (if known), or
their representatives, and the sub recipient(s) agree on the classification and wage rate (including the
amount designated for fringe benefits where appropriate), documentation of the action taken and the
request, including the local wage determination shall be sent by the sub recipient (s) to the State award
official. The State award offlcial will transmit the request, to the Administrator of the Wage and Hour
Division, Employment Standards Administration, U.S. Department of Labor, Washington, DC 20210 and
to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized representative, will
approve, modify, or disapprove every additional classification request within 30 days of receipt and so
advise the State award official or will notify the State award official within the 30-day period that additional
time is necessary.
(C) ln the event the contractor, the laborers or mechanics to be employed in the classification or their
representatives, and the sub recipient(s) do not agree on the proposed classification and wage rate
(including the amount designated for fringe benefits, where appropriate), the award official shall refer the
request anil the local wage determination, including the views of all interested parties and the
recommendation of the State award official, to the Administrator for determination. The request shall be
sent to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized
representative, will issue a determination within 30 days of receipt of the request and so advise the
contracting officer or will notify the contracting officer within the 30-day period that additional time is
necessary.
(D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs
(aX1X|¡XB) or (C) of this section, shall be paid to all workers performing work in the classification under
this contract from the first day on which work is performed in the classification.
(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics
includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the
benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash
equivalent thereof.
(iv) lf the contractor does not make payments to a trustee or other third person, the contractor may
consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated
in providing bona fide fringe benefits under a plan or program, Provided, that the Secretary of Labor has
found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act
have been met. The Secretary of Labor may require the contractor to set aside in a separate account
assets for the meeting of obligations under the plan or program.
(2) Withholding. The sub recipient(s), shall upon written request of the EPA Award Official or an
authorized representative of the Department of Labor, withhold or cause to be withheld from the
contractor under this contract or any other Federal contract with the same prime contractor, or any other
federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the
same prime contractor, so much of the accrued payments or advances as may be considered necessary
to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor
or any subcontractor the full amount of wages required by the contract. ln the event of failure to pay any
G-3
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT G - DAVIS-BACON REQUIREMENTS
laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the
work, all or part of the wages required by the contract, the (Agency) may, after written notice to the
contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension
of any further payment, advance, or guarantee of funds until such violations have ceased.
(3) Payrolls and basic records.
(i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of
the work and preserved for a period of three years thereafter for all laborers and mechanics working at
the site of the work. Such records shall contain the name, address, and social security number of each
such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions
or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in
section 1(b)(2XB) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made
and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the
wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing
benefits under a plan or program described in section 1(bX2)(B)of the Davis-Bacon Act, the contractor
shall maintain records which show that the commitment to provide such benefits is enforceable, that the
plan or program is financially responsible, and that the plan or program has been communicated in writing
to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost
incurred in providing such benefits. Contractors employing apprentices or trainees under approved
programs shall maintain written evidence of the registration of apprenticeship programs and certification
of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates
prescribed in the applicable programs
(ii)(A) The contractor shall submit weekly, for each week in which any contract work is performed, a copy
of all payrolls to the sub recipient, that is, the entity that receives the sub-grant or loan from the State
capitalization grant recipient. Such documentation shall be available on request of the State recipient or
EPA. As to each payroll copy received, the sub recipient shall provide written confirmation in a form
satisfactory to the State indicating whether or not the project is in compliance with the requirements of 29
CFR 5.5(a)(1) based on the most recent payroll copies for the specified week. The payrolls shall set out
accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i),
except that full social security numbers and home addresses shall not be included on the weekly payrolls.
lnstead the payrolls shall only need to include an individually identifying number for each employee (e.9.,
the last four digits of the employee's social security number). The required weekly payroll information may
be submitted in any form de.sired. Optional Form WH-347 is available for this purpose from the Wage and
Hour Division Web site at http://unruw.dol.gov/whd/forms/wh347instr.htm or its successor site. The prime
contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and
subcontractors shall maintain the full social security number and current address of each covered worker,
and shall provide them upon request to the sub recipient(s) for transmission to the State or EPA if
requested by EPA, the State, the contractor, or the Wage and Hour Division of the Department of Labor
for purposes of an investigation or audit of compliance with prevailing wage requirements. lt is not a
violation of this section for a prime contractor to require a subcontractor to provide addresses and social
security numbers to the prime contractor for its own records, without weekly submission to the sub
recipient(s).
(B) Each payroll submìtted shall be accompanied by a "Statement of Compliance," signed by the
contractor or subcontractor or his or her agent who pays or supervises the payment of the persons
employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information required to be provided under
S 5.5 (aX3Xii)of Regulations, 29 CFR part 5, the appropriate information is being maintained under g 5.5
(aX3X¡) of Regulations, 29 CFR part 5, and that such information is correct and complete;
G-4
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT G - DAVIS.BACON REQUIREMENTS
(2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the
contract during the payroll period has been paid the full weekly wages earned, without rebate, either
directly or indirectly, and that no deductions have been made either directly or indirectly from the full
wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3;
(3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe
benefits or cash equivalents for the classification of work performed, as specified in the applicable wage
determination incorporated into the contract.
(C) The weekly submission of a properly executed certification set forth on the reverse side of
Optional Form WH-347 shall satisfy the requirement for submission of the "Statement of
Compliance" required by paragraph (aX3XiiXB) of this section.
(D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil
orcriminalprosecution undersection 1001 of title 18 and section 231 of title 3'l of the United States
Code.
(iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this
section available for inspection, copying, or transcription by authorized representatives of the State, EPA
or the Department of Labor, and shall permit such representatives to interview employees during working
hours on the job. lf the contractor or subcontractor fails to submit the required records or to make them
available, the Federal agency or State may, after written notice to the contractor, sponsor, applicant, or
owner, take such action as may be necessary to cause the suspension of any further payment, advance,
or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such
records available may be grounds for debarment action pursuant to 29 CFR 5.12.
(4) Apprentices and trainees
(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they
performed when they are employed pursuant to and individually registered in a bona fide apprenticeship
program registered with the U.S. Department of Labor, Employment and Training Administration, Office of
Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency
recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment
as an apprentice in such an apprenticeship program, who is not individually registered in the program, but
who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State
Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice.
The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be
greater than the ratio permitted to the contractor as to the entire work force under the registered program.
Any worker listed on a payroll at an apprentice wage rate, who is not registered or othen¡uise employed as
stated above, shall be paid not less than the applicable wage rate on the wage determination for the
classification of work actually performed. ln addition, any apprentice performing work on the job site in
excess of the ratio permitted under the registered program shall be paid not less than the applicable wage
rate on the wage determination for the work actually performed. Where a contractor is performing
construction on a project in a locality other than that in which its program is registered, the ratios and
wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or sub
contractor's registered program shall be observed. Every apprentice must be paid at not less than the rate
specified in the registered program for the apprentice's level of progress, expressed as a percentage of
the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid
fringe benefits in accordance with the provisions of the apprenticeship program. lf the apprenticeship
program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed
on the wage determination for the applicable classification. lf the Administrator determines that a different
practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that
determination. ln the event the Office of Apprenticeship Training, Employer and Labor Services, or a
G-5
City of Fresno
Agreement No.: D1 5-02030
Project No.:'1 000276-001 C
EXHIBIT G - DAVIS-BACON REQUIREMENTS
State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program,
the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined
rate for the work performed until an acceptable program is approved.
(ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the
predetermined rate for the work performed unless they are employed pursuant to and individually
registered in a program which has received prior approval, evidenced by formal certification by the U.S.
Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on
the job site shall not be greater than permitted under the plan approved by the Employment and Training
Administration. Every trainee must be paid at not less than the rate specified in the approved program for
the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the
applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of
the trainee program. lf the trainee program does not mention fringe benefits, trainees shall be paid the full
amount of fringe benefits listed on the wage determination unless the ,Administrator of the Wage and Hour
Division determines that there is an apprenticeship program associated with the corresponding
journeyman wage rate on the wage determination which provides for less than full fringe benefits for
apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in
a training plan approved by the Employment and Training Administration shall be paid not less than the
applicable wage rate on the wage determination for the classification of work actually performed. ln
addition, any trainee performing work on the job site in excess of the ratio permitted under the registered
program shall be paid not less than the applicable wage rate on the wage determination for the work
actually performed. ln the event the Employment and Training Administration withdraws approval of a
training program, the contractor will no longer be permitted to utilize trainees at less than the applicable
predetermined rate for the work performed until an acceptable program is approved.
(iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part
shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as
amended and 29 CFR part 30.
(5) Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29
CFR part 3, which are incorporated by reference in this contract.
(6) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses contained
in 29 CFR 5.5(a)(1) through (10) and such other clauses as the EPA determines may by appropriate, and
also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The
prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor
with allthe contract clauses in 29 CFR 5.5.
(7) Contract termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for
termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR
5.12.
(8) Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the
Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by
reference in this contract.
(9) Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this
contract shall not be subject to the general disputes clause of this contract. Such disputes shall be
resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6,
and 7 . Disputes within the meaning of this clause include disputes between the contractor (or any of its
subcontractors) and sub recipient(s), State, EPA, the U.S. Department of Labor, or the employees or their
representatives.
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City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT G - DAVIS-BACON REQUIREMENTS
( 1 0) Certification of eligibility.
(i) By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or
firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government
contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
(ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a
Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
(iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C.
1001.
4. Contract Provision for Contracts in Excess of $100,000.
(a) Contract Work Hours and Safety Standards Act. The sub recipient shall insert the following clauses
setforth in paragraphs (a)(1), (2), (3), and (4)of this section in full in any contract in an amount in excess
of $100,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act.
These clauses shall be inserted in addition to the clauses required by ltem 3, above or 29 CFR 4.6. As
used in this paragraph, the terms laborers and mechanics include watchmen and guards.
(1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work
which may require or involve the employment of laborers or mechanics shall require or permit any such
laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of
forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less
than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such
workweek.
(2) Violation; liability for unpaid wages; liquidated damages. ln the event of any violation of the clause set
forth in paragraph (a)(1) of this section the contractor and any subcontractor responsible therefore shall
be liable for the unpaid wages. ln addition, such contractor and subcontractor shall be liable to the United
States (in the case of work done under contract for the District of Columbia or a territory, to such District
or to such territory), for liquidated damages.
Such liquidated damages shall be computed with respect to each individual laborer or mechanic,
including watchmen and guards, employed in violation of the clause set forth in paragraph (a)(1) of this
section, in the sum of $10 for each calendar day on which such individual was required or permitted to
work in excess of the standard workweek of forty hours without payment of the overtime wages required
by the clause set forth in paragraph (a)(1) of this section.
(3) Withholding for unpaid wages and liquidated damages. The sub recipient, upon written request of the
EPA Award Official or an authorized representative of the Department of Labor, shall 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 contractor, 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 paragraph (b)(2) of this section.
(4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in
paragraph (aX1) through (4) of this section 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 paragraphs (a)(1) through (4) of
this section.
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City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT G - DAVIS-BACON REQUIREMENTS
(b) ln addition to the clauses contained in ltem 3, above, in any contract subject only to the
Contract Work Hours and Safety Standards Act and not to any of the other statutes cited in 29
CFR 5.1, the Sub recipient shall insert a clause requiring that the contractor or subcontractor shall
maintain payrolls and basic payroll records during the course of the work and shall preserve them for a
period of three years from the completion of the contract for all laborers and mechanics, including guards
and watchmen, working on the contract. Such records shall contain the name and address of each such
employee, social security number, correct classifications, hourly rates of wages paid, daily and weekly
number of hours worked, deductions made, and actual wages paid. Further, the Sub recipient shall insert
in any such contract a clause providing that the records to be maintained under this paragraph shall be
made available by the contractor or subcontractor for inspection, copying, or transcription by authorized
representatives of the USEPA and the Department of Labor and the State Water Board, and the
contractor or subcontractor will permit such representatives to interview employees during working hours
on the job.
5. Compliance Verification
(a) The sub recipient shall periodically interview a sufficient number of employees entitled to DB
prevailing wages (covered employees) to verify that contractors or subcontractors are paying the
appropriate wage rates. As provided in 29 CFR 5.6(a)(6), all interviews must be conducted in confidence.
The sub recipient must use Standard Form 1445 (SF 1445) or equivalent documentation to memorialize
the interviews. Copies of the SF 1445 are available from EPA on request.
(b) The sub recipient shall establish and follow an interview schedule based on its assessment of the
risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or
subcontract. Sub recipients must conduct more frequent interviews if the initial interviews or other
information indicated that there is a risk that the contractor or subcontractor is not complying with DB.
Sub recipients shall immediately conduct interviews in response to an alleged violation of the prevailing
wage requirements. All interviews shall be conducted in confidence."
(c) The sub recipient shall periodically conduct spot checks of a representative sample of weekly payroll
data to verify that contractors or subcontractors are paying the appropriate wage rates. The sub recipient
shall establish and follow a spot check schedule based on its assessment of the risks of noncompliance
with DB posed by contractors or subcontractors and the duration of the contract or subcontract. At a
minimum, if practicable, the sub recipient should spot check payroll data within two weeks of each
contractor or subcontractor's submission of its initial payroll data and two weeks prior to the completion
date the contract or subcontract. Sub recipients must conduct more frequent spot checks if the initial spot
check or other information indicates that there is a risk that the contractor or subcontractor is not
complying with DB. ln addition, during the examinations the sub recipient shall verify evidence of fringe
benefit plans and payments there under by contractors and subcontractors who claim credit for fringe
benefit contributions.
(d) The sub recipient shall periodically review contractors' and subcontractors' use of apprentices and
trainees to verify registration and certification with respect to apprenticeship and training programs
approved by either the U.S Department of Labor or a state, as appropriate, and that contractors and
subcontractors are not using disproportionate numbers of, laborers, trainees and apprentices. These
reviews shall be conducted in accordance with the schedules for spot checks and interviews described in
Item 5(b)and (c)above.
(e) Sub recipients must immediately report potential violations of the DB prevailing wage requirements to
the EPA DB contact listed above and to the appropriate DOL Wage and Hour
District Office listed at htto://wr.vrv.dol. gov/whd/america2.htm.
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City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT G - DAVIS-BACON REQUIREMENTS
ll. Requirements For Sub recipients That Are Not Governmental Entities:
lf a sub recipient has questions regarding when Davis-Bacon (DB) applies, obtaining the correct DB wage
determinations, DB provisions, or compliance monitoring, it may contact the State recipient for guidance.
The recipient or sub recipient may also obtain additional guidance from DOL's web site at
htto://www.dol.qoviwhd/ . Under these terms and conditions, the sub recipient must submit its proposed
DB wage determinations to the State Water Board for approval prior to including the wage determination
in any solicitation, contract task orders, work assignments, or similar instruments to existing contractors.
1. Applicability of the Davis- Bacon (DB) prevailing wage requirements.
DB prevailing wage requirements apply to the construction, alteration, and repair of treatment works
carried out in whole or in part with assistance made available by a State water pollution control revolving
fund and to any construction project carried out in whole or in part by assistance made available by a
drinking water treatment revolving loan fund. lf a sub recipient encounters a uniquB situation at a site that
presents uncertainties regarding DB applicability, the sub recipient must discuss the situation with the
recipient State before authorizing work on that site.
2. Obtaining Wage Determinations.
(a) Sub recipients must obtain proposed wage determinations for specific localities at www.wdol.gov.
After the Sub recipient obtains its proposed wage determination, it must submit the wage determination to
the State Water Board for approval prior to inserting the wage determination into a solicitation, contract or
issuing task orders, work assignments or similar instruments to existing contractors (ordering instruments
unless subsequently directed otherwise by the State recipient Award Official.)
(b) Sub recipients shall obtain the wage determination for the locality in which a covered activity subject to
DB will take place prior to issuing requests for bids, proposals, quotes or other methods for soliciting
contracts (solicitation) for activities subject to DB. These wage determinations shall be incorporated into
solicitations and any subsequent contracts. Prime contracts must contain a provision requiring that
subcontractors follow the wage determination incorporated into the prime contract.
(i) While the solicitation remains open, the sub recipient shall monitor www.wdol.gov on a weekly basis to
ensure that the wage determination contained in the solicitation remains current. The sub recipients shall
amend the solicitation if DOL issues a modification more than 10 days prior to the closing dqte (i.e. bid
opening) for the solicitation. lf DOL modifies or supersedes the applicable wage determination less than
10 days prior to the closing date, the sub recipients may request a finding from the State recipient that
there is not a reasonable time to notify interested contractors of the modification of the wage
determination. The State recipient will provide a report of its findings to the sub recipient.
(ii) lf the sub recipient does not award the contract within 90 days of the closure of the solicitation, any
modifications or supersedes DOL makes to the wage determination contained in the solicitation shall be
effective unless the State recipient, at the request of the sub recipient, obtains an extension of the g0 day
period from DOL pursuant to 29 CFR 1.6(c)(3)(iv). The sub recipient shall monitor www.wdol.gov on a
weekly basis if it does not award the contract within g0 days of closure of the solicitation to ensure that
wage determinations contained in the solicitation remain current.
(c) lf the sub recipient carries out activity subject to DB by issuing a task order, work assignment or similar
instrument to an existing contractor (ordering instrument) rather than by publishing a solicitation, the sub
recipient shall insert the appropriate DOL wage determination from wr¡¿w.wdol.gov into the ordering
instrument.
G-9
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT G _ DAVIS-BACON REQUIREMENTS
(d) Sub recipients shall review all subcontracts subject to DB entered into by prime contractors to verify
that the prime contractor has required its subcontractors to include the applicable wage determinations.
(e) As provided in 29 CFR 1.6(f), DOL may issue a revised wage determination applicable to a sub
recipient's contract after the award of a contract or the issuance of an ordering instrument if
DOL determines that the sub recipient has failed to incorporate a wage determination or has used a wage
determination that clearly does not apply to the contract or ordering instrument. lf this occurs, the sub
recipient shall either terminate the contract or ordering instrument and issue a revised solicitation or
ordering instrument or incorporate DOL's wage determination retroactive to the beginning of the contract
or ordering instrument by change order. The sub recipient's contractor must be compensated for any
increases in wages resulting from the use of DOL's revised wage determination.
3. Contract and Subcontract provisions.
(a) The Recipient shall insure that the sub recipient(s) shall insert in full in any contract in excess of
$2,000 which is entered into for the actual construction, alteration and/or repair, including painting and
decorating, of a treatment work under the CWSRF or a construction project under the DWSRF - or in
accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any
contract of a Federal agency to make a loan, grant or annual contribution (except where a different
meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts
listed in $ 5.1 or the FY 2015 Water Resource Reform and Development Act -, the following clauses:
(1)Minimum wages.
(i) All laborers and mechanics employed or working upon the site of the work, will be paid unconditionally
and not less often than once a week, and without subsequent deduction or rebate on any account (except
such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the
Copeland Act (29 CFR part 3) ), the full amount of wages and bona fide fringe benefits (or cash
equivalents thereof) due at time of payment computed at rates not less than those contained in the wage
determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of
any contractual relationship which may be alleged to exist between the contractor and such laborers and
mechanics.
Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of
the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or
mechanics, subject to the provisions of paragraph (a)(1)(iv) of this section; also, regular contributions
made or costs incurred for more than a weekly period (but not less often than quarterly) under plans,
funds, or programs which cover the particular weekly period, are deemed to be constructively made or
incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate
and fringe benefits on the wage determination for the classification of work actually performed, without
regard to skill, except as provided in $ 5.5(a)( ). Laborers or mechanics performing work in more than
one classification may be compensated at the rate specified for each classification for the time actually
worked therein: Provided, that the employer's payroll records accurately set forth the time spent in each
classification in which work is performed. The wage determination (including any additional classification
and wage rates conformed under paragraph (a)(1)(ii) of this section) and the Davis-Bacon poster (WH-
1321 ) shall be posted at all times by the contractor and its subcontractors at the site of the work in a
piominent and accessible place where it can be easily seen by the workers.
Sub recipients may obtain wage determinations from the U.S. Department of Labor's web site,
www.dol.gov.
(ii)(A) The sub recipient(s), on behalf of EPA, shall require that any class of laborers or mechanics,
including helpers, which is not listed in the wage determination and which is to be employed under the
G-10
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT G - DAVIS-BACON REQUIREMENTS
contract shall be classified in conformance with the wage determination. The State award official shall
approve a request for an additional classification and wage rate and fringe benefits therefore only when
the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a classification in the
wage determination; and
(2) The classification is utilized in the area by the construction industry; and
(3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to
the wage rates contained in the wage determination.
(B) lf the contractor and the laborers and mechanics to be employed in the classification (if known), or
their representatives, and the sub recipient(s) agree on the classification and wage rate (including the
amount designated for fringe benefits where appropriate), documentation of the action taken and the
request, including the local wage determination shall be sent by the sub recipient(s) to the State award
official. The State award official will transmit the report, to the Administrator of the Wage and Hour
Division, Employment Standards Administration, U.S. Department of Labor, Washington, DC 20210 and
to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized representative, will
approve, modify, or disapprove every additional classification request within 30 days of receipt and so
advise the State award official or will notify the State award official within the 30-day period that additional
time is necessary.
(C) ln the event the contractor, the laborers or mechanics to be employed in the classification or their
representatives, and the sub recipient(s) do not agree on the proposed classification and wage rate
(including the amount designated for fringe benefits, where appropriate), the award official shall refer the
request, and the local wage determination, including the views of all interested parties and the
recommendation of the State award official, to the Administrator for determination. The request shall be
sent to the EPA Regional Coordinator concurrently. The Administrator, or an authorized representative,
will issue a determination within 30 days of receipt of the request and so advise the contracting officer or
will notify the contracting officer within the 30-day period that additional time is necessary.
(D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs
(a)(t )(ii)(A) or (C) of this section, shall be paid to all workers performing work in the classification under
this contract from the first day on which work is performed in the classification.
(iii)Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics
includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the
benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash
equivalent thereof.
(iv) lf the contractor does not make payments to a trustee or other third person, the contractor may
consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated
in providing bona fide fringe benefits under a plan or program, Provided, that the Secretary of Labor has
found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act
have been met. The Secretary of Labor may require the contractor to set aside in a separate account
assets for the meeting of obligations under the plan or program.
(2)Withholding. The sub recipient(s) shall upon written request of the EPA Award Official or an
authorized representative of the Department of Labor, withhold or cause to be withheld from the
contractor under this contract or any other Federal contract with the same prime contractor, or any other
federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the
same prime contractor, so much of the accrued payments or advances as may be considered necessary
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City of Fresno
Agreement No.: D1 5-02030
Project No.:'1 000276-001 C
EXHIBIT G - DAVIS-BACON REQUIREMENTS
to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor
or any subcontractor the full amount of wages required by the contract. ln the event of failure to pay any
laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the
work, all or part of the wages required by the contract, the (Agency) may, after written notice to the
contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension
of any further payment, advance, or guarantee of funds until such violations have ceased.
(3) Payrolls and basic records.
(i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of
the work and preserved for a period of three years thereafter for all laborers and mechanics working at
the site of the work. Such records shall contain the name, address, and social security number of each
such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions
or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in
section 1(bX2XB) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made
and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the
wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing
benefits under a plan or program described in section 1(bX2XB) of the Davis-Bacon Act, the contractor
shall maintain records which show that the commitment to provide such benefits is enforceable, that the
plan or program is financially responsible, and that the plan or program has been communicated in writing
to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost
incurred in providing such benefits. Contractors employing apprentices or trainees under approved
programs shall maintain written evidence of the registration of apprenticeship programs and certification
of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates
prescribed in the applicable programs.
(ii)(A) The contractor shall submit weekly, for each week in which any contract work is performed, a copy
of all payrolls to the sub recipient, that is, the entity that receives the sub-grant or loan from the State
capitalization grant recipient. Such documentation shall be available on request of the State recipient or
EPA. As to each payroll copy received, the sub recipient shall provide written confirmation in a form
satisfactory to the State indicating whether or not the project is in compliance with the requirements of 29
CFR 5.5(a)(1) based on the most recent payroll copies for the specified week. The payrolls shall set out
accurately and completely all of the information required to be maintained under 29 CFR 5.5(aX3Xi),
except that full social security numbers and home addresses shall not be included on the weekly payrolls.
lnstead the payrolls shall only need to include an individually identifying number for each employee (e.9.,
the last four digits of the employee's social security number). The required weekly payroll information may
be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and
Hour Division Web site at http://www.dol.gov/whd/forms/wh347instr.htm or its successor site. The prime
contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and
subcontractors shall maintain the full social security number and current address of each covered worker,
and shall provide them upon request to the sub recipient(s) for transmission to the State or EPA if
requested by EPA, the State, the contractor, or the Wage and Hour Division of the Department of Labor
for purposes of an investigation or audit of compliance with prevailing wage requirements. lt is not a
violation of this section for a prime contractor to require a subcontractor to provide addresses and social
security numbers to the prime contractor for its own records, without weekly submission to the sub
recipient(s).
(B) Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the
contractor or subcontractor or his or her agent who pays or supervises the payment of the persons
employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information required to be provided under
G-12
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT G - DAVIS.BACON REQUIREMENTS
S 5.5 (aX3Xii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under $ 5.5
(aX3X¡) of Regulations, 29 CFR part 5, and that such information is correct and complete;
(2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the
contract during the payroll period has been paid the full weekly wages earned, without rebate, either
directly or indirectly, and that no deductions have been made either directly or indirectly from the full
wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3;
(3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe
benefits or cash equivalents for the classification of work performed, as specified in the applicable wage
determination incorporated into the contract.
(C) The weekly submission of a properly executed certification set forth on the reverse side of
Optional Form WH-347 shall satisfy the requirement for submission of the "Statement of
Compliance" required by paragraph (a)(eX¡¡XB) of this section.
(D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil
orcriminalprosecution undersection 1001 of title 18 and section 231of title 31 of the United States
Code.
(iii) The contractor or subcontractor shall make the records required under paragraph (aX3Xi) of this
section available for inspection, copying, or transcription by authorized representatives of the State, EPA
or the Department of Labor, and shall permit such representatives to interview employees during working
hours on the job. lf the contractor or subcontractor fails to submit the required records or to make them
available, the Federal agency or State may, after written notice to the contractor, sponsor, applicant, or
owner, take such action as may be necessary to cause the suspension of any further payment, advance,
or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such
records available may be grounds for debarment action pursuant to 29 CFR 5.12.
(4) Apprentices and trainees--
(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they
performed when they are employed pursuant to and individually registered in a bona fide apprenticeship
program registered with the U.S. Department of Labor, Employment and Training Administration, Office of
Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency
recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment
as an apprentice in such an apprenticeship program, who is not individually registered in the program, but
who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State
Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice.
The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be
greater than the ratio permitted to the contractor as to the entire work force under the registered program.
Any worker listed on a payroll at an apprentice wage rate, who is not registered or othenrvise employed as
stated above, shall be paid not less than the applicable wage rate on the wage determination for the
classification of work actually performed. ln addition, any apprentice performing work on the job site in
excess of the ratio permitted under the registered program shall be paid not less than the applicable wage
rate on the wage determination for the work actually performed. Where a contractor is performing
construction on a project in a locality other than that in which its program is registered, the ratios and
wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or
subcontractors registered program shall be observed. Every apprentice must be paid at not less than the
rate specified in the registered program for the apprentice's level of progress, expressed as a percentage
of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid
fringe benefits in accordance with the provisions of the apprenticeship program. lf the apprenticeship
program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed
G-13
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT G _ DAVIS-BACON REQUIREMENTS
on the wage determination for the applicable classification. lf the Administrator determines that a different
practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that
determination. ln the event the Office of Apprenticeship Training, Employer and Labor Services, or a
State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program,
the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined
rate for the work performed until an acceptable program is approved.
(ii)Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the
predetermined rate for the work performed unless they are employed pursuant to and individually
registered in a program which has received prior approval, evidenced by formal certification by the U.S.
Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on
the job site shall not be greater than permitted under the plan approved by the Employment and Training
Administration. Every trainee must be paid at not less than the rate specified in the approved program for
the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the
applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of
the trainee program. lf the trainee program does not mention fringe benefits, trainees shall be paid the full
amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour
Division determines that there is an apprenticeship program associated with the corresponding
journeyman wage rate on the wage determination which provides for less than full fringe benefits for
apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in
a training plan approved by the Employment and Training Administration shall be paid not less than the
applicable wage rate on the wage determination for the classification of work actually performed. ln
addition, any trainee performing work on the job site in excess of the ratio permitted under the registered
program shall be paid not less than the applicable wage rate on the wage determination for the work
actually performed. ln the event the Employment and Training Administration withdraws approval of a
training program, the contractor will no longer be permitted to utilize trainees at less than the applicable
predetermined rate for the work performed until an acceptable program is approved.
(iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part
shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as
amended and 29 CFR part 30.
(5) Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29
CFR part 3, which are incorporated by reference in this contract.
(6) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses contained
in 29 CFR 5.5(a)(1) through (10) and such other clauses as the EPA determines may by appropriate, and
also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The
prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor
with all the contract clauses in 29 CFR 5.5.
(7) Contract termination: debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for
termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR
5.12.
(8) Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the
Davis-Bacon and Related Acts contained in 29 CFR parts 1,3, and 5 are herein incorporated by
reference in this contract.
(9) Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this
contract shall not be subject to the general disputes clause of this contract. Such disputes shall be
resolved in accordance with the procedures of the Department of Labor set forth in 29
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City of Fresno
Agreement No.: D1 5-02030
Project No.: 1000276-001 C
EXHIBIT G - DAVIS-BACON REQUIREMENTS
CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor
(or any of its subcontractors) and Sub recipient(s), State, EPA, the U.S. Department of Labor, or the
employees or their representatives.
(1 0) Certification of eligibility.
(i) By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or
firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government
contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR
5.12(a)(1).
(ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a
Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
(iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C.
1001.
4. Contract Provision for Contracts in Excess of $100,000.
(a) Contract Work Hours and Safety Standards Act. The sub recipient shall insert the following clauses
setforth in paragraphs (a)(1), (2), (3), and (4)of this section in full in any contract in an amount in excess
of $100,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act.
These clauses shall be inserted in addition to the clauses required by ltem 3, above or 29 CFR 4.6. As
used in this paragraph, the terms laborers and mechanics include watchmen and guards.
(1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work
which may require or involve the employment of laborers or mechanics shall require or permit any such
laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of
forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less
than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such
workweek.
(2) Violation; liability for unpaid wages; liquidated damages. ln the event of any violation of the clause set
forth in paragraph (b)(1) of this section the contractor and any subcontractor responsible therefore shall
be liable for the unpaid wages. ln addition, such contractor and subcontractor shall be liable to the United
States (in the case of work done under contract for the District of Columbia or a territory, to such District
or to such territory), for liquidated damages.
Such liquidated damages shall be computed with respect to each individual laborer or mechanic,
including watchmen and guards, employed in violation of the clause set forth in paragraph (b)(1) of this
section, in the sum of $10 for each calendar day on which such individualwas required or permitted to
work in excess of the standard workweek of forty hours without payment of the overtime wages required
by the clause set forth in paragraph (bX1) of this section.
(3) Withholding for unpaid wages and liquidated damages. The sub recipient shall upon the request of the
EPA Award Official or 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 ahy other Federal contract with the same prime contractor, 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 paragraph (a)(2) of this section.
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City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT G - DAVIS-BACON REQUIREMENTS
(4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in
paragraph (a)(1) through (a) of this section 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 paragraphs (a)(1) through (4) of
this section.
(c) ln addition to the clauses contained in ltem 3, above, in any contract subject only to the
Contract Work Hours and Safety Standards Act and not to any of the other statutes cited in 29
CFR 5.1, the Sub recipient shall insert a clause requiring that the contractor or subcontractor shall
maintain payrolls and basic payroll records during the course of the work and shall preserve them for a
period of three years from the completion of the contract for all laborers and mechanics, including guards
and watchmen, working on the contract. Such records shall contain the name and address of each such
employee, social security number, correct classifications, hourly rates of wages paid, daily and weekly
number of hours worked, deductions made, and actual wages paid. Further, the Sub recipient shall insert
in any such contract a clause providing that the records to be maintained under this paragraph shall be
made available by the contractor or subcontractor for inspection, copying, or transcription by authorized
representatives of the USEPA and the Department of Labor and the State Water Board, and the
contractor or subcontractor will permit such representatives to interview employees during working hours
on the job.
5. Compliance Verification
(a) The sub recipient shall periodically interview a sufficient number of employees entitled to DB
prevailing wages (covered employees) to verify that contractors or subcontractors are paying the
appropriate wage rates. As provided in 29 CFR 5.6(aXO), all interviews must be conducted in confidence.
The sub recipient must use Standard Form 1445 (SF 1445)or equivalent documentation to memorialize
the interviews. Copies of the SF 1445 are available from EPA on request.
(b) The sub recipient shall establish and follow an interview schedule based on its assessment of the
risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or
subcontract. Sub recipients must conduct more frequent interviews if the initial interviews or other
information indicated that there is a risk that the contractor or subcontractor is not complying with DB. Sub
recipients shall immediately conduct interviews in response to an alleged violation of the prevailing wage
requirements. All interviews shall be conducted in confidence."
(c) The sub recipient shall periodically conduct spot checks of a representative sample of weekly payroll
data to verify that contractors or subcontractors are paying the appropriate wage rates. The sub recipient
shall establish and follow a spot check schedule based on its assessment of the risks of noncompliance
with DB posed by contractors or subcontractors and the duration of the contract or subcontract. At a
minimum, if practicable the sub recipient should spot check payroll data within two weeks of each
contractor or subcontractor's submission of its initial payroll data and two weeks prior to the completion
date the contract or subcontract. Sub recipients must conduct more frequent spot checks if the initial spot
check or other information indicates that there is a risk that the contractor or subcontractor is not
complying with DB . ln addition, during the examinations the sub recipient shall verify evidence of fringe
benefit plans and payments there under by contractors and subcontractors who claim credit for fringe
benefit contributions.
(d) The sub recipient shall periodically review contractors and subcontractors use of apprentices and
trainees to verify registration and certification with respect to apprenticeship and training programs
approved by either the U.S Department of Labor or a state, as appropriate, and that contractors and
subcontractors are not using disproportionate numbers of, laborers, trainees and apprentices. These
reviews shall be conducted in accordance with the schedules for spot checks and interviews described in
Item 5(b)and (c)above.
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City of Fresno
Agreement No.: D1 5-02030
Project No.: 1000276-001 C
EXHIBIT G - DAVIS.BACON REQUIREMENTS
(e) Sub recipients must immediately report potential violations of the DB prevailing wage requirements to
the EPA DB contact listed above and to the appropriate DOL Wage and Hour
District Office I isted at http ://www. dol. gov/whd/a m erica2. htm .
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City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT H . COMPLIANCE WITH CROSS.CUTTING STATE AUTHORITIES
1. EMERGENCY DROUGHT REGULATIONS
The Recipient certifies that it complies with and shall continue to comply with the State Water Board's
Drought Emergency Water Conservation regulations in Section 863-866 of title 23 of the California Code
of Regulations. The Recipient will include a discussion of its implementation in reports submitted
pursuant to Section 2.15 of this Agreement.
2. COMPLIANCE WITH STATE REQUIREMENTS
Recipient represents that is in in compliance with the following conditions precedent and agrees that it will
continue to maintain compliance during the term of this Agreement:
(a) Monthly Water Diversion Reporting
lf Recipient is a water diverter, Recipient must maintain compliance with Water Code section
5103, subdivision (e)(2)(A) by submitting monthly diversion reports to the Division of Water Rights
of the State Water Resources Control Board.
(b) Public Works Contractor Registration With Department Of lndustrial Relations
To bid for public works contracts, Recipient and Recipient's subcontractors must register with the
Department of lndustrial Relations as required by Labor Code sections 1725.5 and 1771.1.
(c) Volumetric Pricing & Water Meters
lf Recipient is an "urban water supplier" as defined by Water Code section 10617, Recipient must
charge each customer for actual water volume measured by water meter according to the
requirements of Water Code sections 526 and 527. Section 527 further requires that such
suppliers not subject to section 526 install water meters on all municipal and industrial service
connections within their service areaby 2025.
(d) Urban Water Management Plan
lf Recipient is an "urban water supplier" as defined by Water Code section 10617, the Recipient
certifies that this Project complies with the Urban Water Management Planning Act (Water Code,
S 10610 et seq.). This shall constitute a condition precedent to this Agreement.
(e) Urban Water Demand Management
lf Recipient is an "urban water supplier" as defined by Water Code section 10617, Recipient must
implement water demand management measures approved by the Department of Water
Resources according to the requirements of Water Code section 10631.5, subdivision (a)(1).
(f) Delta Plan Consistency Findings
lf Recipient is a state or local public agency and the proposed action is covered by the Delta Plan,
Recipient must submit certification of project consistency with the Delta Plan to the Delta
Stewardship Council according to the requirements of Water Code section 85225 and California
Code of Regulations, title 23, section 5002.
(g) Agricultural Water Management Plan Consistency
H-1
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT H - COMPLIANCE WITH CROSS-CUTTING STATE AUTHORITIES
lf Recipient is an agricultural water supplier as defined by Water Code section 10608.12,
Recipient must comply with Agricultural Water Management Planning requirements as mandated
by Water Code section 10852.
(h) Charter City Project Labor Requirements
lf Recipient is a charter city as defined in Labor Code section 1782, subdivision (d)(2), Recipient
will comply with the requirements of Labor Code section 1782 and Public Contract Code section
2503 as discussed in the following subparts (1) and (2).
(1) Prevailing Wage
Recipient certifies that it is eligible for state funding assistance notwithstanding Labor
Code section 1782.
Specifically Recipient certifies that no charter provision nor ordinance authorizes a
construction project contractor not to comply with Labor Code's prevailing wage rate
requirements, nor, within the prior two years (starting from January 1,2015 or after) has
the city awarded a public works contract without requiring the contractor to comply with
such wage rate requirements according to Labor Code section 1782.
(2) Labor Agreements
Recipient certifies that no charter provision, initiative, or ordinance limits or constrains the
city's authority or discretion to adopt, require, or utilize project labor agreements that
include all the taxpayer protection antidiscrimination provisions of Public Contract Code
section 2500 in construction projects, and that Recipient is accordingly eligible for state
funding or financial assistance pursuant to Public Contract Code section 2503.
H-2
City of Fresno
Agreement No.: D1 5-02030
Project No.: 1 000276-001 C
EXHIBIT I- MATERIAL LITIGATION, INVESTIGATIONS, AUDITS
None
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