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1988-077-RES WHEREAS, the City Council of the City of Paris, did in Resolution No. 88-065 on July 11, 1988, authorize RESOLUTION NO. 88-077 WHEREAS, the City Council of the City of Paris, did in Resolution No. 88-065 on July 11, 1988, authorize the acceptance of the Technical Assistance Grant, Proj ect No. 08-06-02603 from the Economic Development Administration for a Feasibility Study for a Food Processing Plant; and, WHEREAS, proposals were received through July 27, 1988, for said feasibility study; and, WHEREAS, the best proposal for such feasibility study was made by Creek Industries, P. O. Box 2118, Sulphur Springs, Texas 75482, and it should be awarded the proposal for such professional services; and, WHEREAS, it is deemed to be in the best interest of the City of Paris that such proposal be accepted and that a professional services contract in the form of Exhibit A attached hereto and made a part hereof, be and the same is hereby approved; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, That the Mayor of the City of Paris, Eric S. Clifford, be, and he is hereby authorized and directed to execute on behalf of the City of Paris the professional services contract with Creek Industries for a feasibility study, upon the terms and conditions and in the form shown in Exhibit A attached hereto. Passed and adopted this 8th day of August, 1988. Eric S. Clifford, Mayor ATTEST: ~'~" ~,,~~~~ Matt~e Cunning am, City er APPROVED AS TO FORM: ttorney CONTRACT AGREEMENT THIS AGREEMENT, made and entered into this 8th day of August, 1988, by and between CREEK INDUSTRIES, hereinafter called the CONSULTANT and the CITY OF PARIS, Paris, Texas, acting by and through its Mayor, Eric S. Clifford, hereinafter called CITY. WITNESSETH THAT: WHEREAS, pursuant to the invitation of the CITY, extended through an officially published "Legal Notice", the CONSULTANT did in accordance therewith, on the 1st day of August, 1988, file with the CITY a proposal containing an offer which was invited by said notice; and WHEREAS, the CITY has heretofore determined that said offer was the lowest and best submitted: NOW, THEREFORE, IT IS AGREED: First: That the CONSULTANT shall comply in every way with the requirements of those certain specifications entitled: U. S. Department of Commerce, Economic Development Adminis- tration Office of Technical Assistance, Special Terms and Conditions, for Technical Assistance Grant under Title 3. Section 301 (a) of the Public Works and Economic Development Act of 1965, as amended, Effective Date: July 1, 1988, Grant No. 08-06-02603, Title: Food Processing Plant Feasibility Study. Second: That in consideration of the faithful compliance with the terms and conditions of this Agreement the CITY shall pay to the CONSULTANT at the times and in the manner provided in said specif- ication the total sum of Thirty-Six Thousand Five Hundred Dollars ($36,500) which sum is subject, however, to decrease in such proportion as the quantities named in said proposal are not per- formed and otherwise as in said specifications and proposal provided. Progress statements to be provided to the CITY on 25th day of each month providing estimated percentage of work completed whereby progress payments can be made to the CONSULTANT on or before the 10th of the following month. Third: That the time of completion is 1 April, 1989. Fourth: That the contract documents which are hereby made a part of this Agreement by the actual attachment or by this reference thereto are as follows: 1. The Legal Notice - being the invitation to submit a proposal; 2. The Special Terms and Conditions named above by title. ,,__~ -'I~.....~ ___ ~__'._J_.J .:_ ,,_.......+-- l\l,.., IN WITNESS WHEREOF, said CONSULTANT and said CITY have caused this Agreement to be executed on the day and year first above written. CREEK INDUSTRIES, CONSULTANT By Don Coxwell, President ATTEST: Wyelene Coxwell, Secretary CITY OF PARIS, CITY By Eric S. Clifford, Mayor ATTEST: Mattie Cunningham, City Clerk A Professional Group PO, Box 2118 Sulphur Springs Texas 75482 (214; 856.75,5 (214) 8l?5.7892 July 28, 1988 New Construction . Restoration .E.~(J.iQrT)ent Leasing City of Paris P.O. Box 1037 Paris, TX 75460 Att: Sue Smith Re: Feasiblility Study Food Processing Plant Paris, Texas Creek Industries is a Professional Group based Springs, Texas. Our capabilities range from project to management systems. in Sulphur conception Our staff is comprised of select experienced professionals in the areas of marketing, engineering, construction, development and design. Since the conception of the aforementioned project we have not only interested in the study but potential ownership degree. Therefore we must approach this project as if it were going to take place tommorrow. It is not a mere exercise possibilities to us, it is the ground work for the initiation a new project. been to a in of As elected officials you have in the past looked to the future in building the community to it's greatest potential. In a project of this type the community has new outlets for employment opportunity, not only in the new plant but throughout the existing business community. The farmers shall have more crops to produce, the local merchants have greater sales, the young people that were leaving to find jobs elsewhere begin staying in the community. Gradually new families move-in, as everyone wants to be in a location that prosperity has planted seedlings of growth. All of this creates new employment and greater tax revenues. EXHIBIT A pg 2 - feasibility study Our interest is more than just a study to determine if~ t.h~. .plant is possible. Our primary interest in performing the study is that we have all the accurate, pertinent information necessary to initiate the actual project development and operation. For the past several months we have entertained the possibility of this type of investment. Should the study prove positive and if we are certain of authenticity of the final report, we then can recommend to our investors (with matched local enthusiasm) that this project is in fact a viable project. Our approach to the study is to provide experts in the field necessary to compile information to correlate into a format that follows the government outline and that provides a working plan that will stimulate the activity necessary to start construction and marketing immediately upon completion of this study evaluation. The project shall be headed up by Parker Nielsen, his duties include but not limited to the following: Spokes person for Creek Industries, Project Manager, Information evaluation and correlation, Researching all product lines, consulting with Creek Investors and keeping Sue Smith, Project Manager for the City of Paris informed and involved as the study progresses. Jack Griffin, Engineer - Duties shall include researching data for adaptive re-use of existing properties available, environmental analysis and impact studies, determining cost ie: construction maintenance and shall provide input on financial planning program. Floyd Humphries, Architect -Shall inspect all available facilities to determine if current available space is adequate for proposed processing plant and provide summaries in joint with engineer and accountant to ascertain cost. He shall also determine use of space and provide possible floor plan renderings for approval should a site be selected. Larry Powers, Attorney- Legal Counsel, duties shall include compiling information on and about legalities in state wide and national distribution of products and marketing. To evaluate ownership programs and provide dissertation on each with recommendations. pg )-feasibility study .1") . ~ .. ," .'~ . . B.J. Smithers, Accountant Shall assist in reviewing all financial data concerning entire project inclusive of future forcasting potential based on market trends. Steven Karr, Agriculture-Business- Duties shall include on site visitation to local and surrounding farm areas to determine what crops can and possibly may be produced with local manpower availibilty and what it will take to do so. The correlated information from each of these individuals and the imput from businesses already in the market place should more than provide the data necessary to prove that there is in fact opportunity in the Paris area for econonic development utilizing existing facilities and "hometown residents". Being that time is of the essence several areas of the research can be evalulated at a time with weekly correlation of data between staff members, then alternate monthly reports due to the city. Many areas of research shall require information that the City already has access to ie; demographics, tourisum reports etc;. Our staff has been prepared to have the study completed within a six (6) month period or less. Current possiblilities for the plant include but are not limited to the following: Fruit and Vegetable Processing Apple Cider including beverages Winery Meat Processing and Packaging Catfish incubation and packaging Raising fresh water lobster (note) We have had serious inquires todate in several of the above possibilities. pg 4-feasibility study In closing we believe this study will document the ;apility of this community to promote and develop more employmentoppor~unity utilizing assets currently available. Should you have any questions, please feel free to to contract our office. Sincerely, CREEK INDUSTRIES CORPORATION ~~ Parker Nielsen Vice President HUG il2 'as 14:il\) WEE PRInT CORP HOO .816-421-1144 tJ .... ~ ~~-~v~"t.. 6,<--' , ADDENDA 1. Project: FeAsibility Study, Food Processing Plant Location: Paris. lx. .. .... ," . . In addition to information supplied to date, we have been in touch with the Texas Department of Agriculture with regard to assistance that may be obtained from Mr. Brian Muller of the Department. We have also contacted,at Texas A&M , the office of Dr.Story who may through research of an ongoing nature may be able to offer valuable information with regard to the study. At this point to what total extent these individuals may be able to assist is undetermined. However, we feel that their input can be utilized in several areas of the study. As more information is received from the offices of the aforementioned individuals it shell be relayed on to you. cc: Don ColtWe 11 Proj. file ~ A Professional Group PO Box 2118 Sulphur Sp'lngs Texas 75482 (214) 856-7515 (214) 885-7892 New Construction · Restoration _ 1i;:!:1y.loment Leasing August 1, 1988 Proposed work schedule Project 08-06-02603 Upon receipt of notice to proceed, we shall initiate first phase of the study and proceed in a continuous manner through completion. Phase One: 30 -45 days {Staff as described in previous proposal) During phase one, we expect to obtain the following data: AI) Current crops being produced 2) Potential crops and interest to produce 3) Interest in a cooperative 4) Interest to invest in a cooperative 5) Equipment on hand in working order 6) Equipment nessary to produce result 7) Need to produce crop? financial, technical, etc... Bl) Soil reports- types and condition 2) Crops that may be produced, with consideration of climate Cl) Inspect possible facility locations 2) Obtain pertinent financial information From the afforementioned data we hope to have enough information to determine: Dl) Crops most suitable for the environment 2) Farmers ability and interest to provide these crops 3) Farmers interest in a cooperative 4) Farmers views on structure and comparison data on possible plant facility Information shall be obtained on farm surveys, meetings with area farmers, discussion with current landowners and soil conservationists. EXHIBIT B Project 08-06-02603 co..'t Phase Two: 30-45 days With prime potential crops identified, objective becomes that of production and processing. During this phase we hope to determine: A) Crops producing greatest returns B) Type of processing necessary C) Where the market for these crops lie D) Type and availability of equipment E) Size of facility necessary F) Number of Jobs directly associated G) Determine environmental impact Phase Three: 30-45 days At this point item one and three are complete. Item five, six and six A are in progress and objective for period is to complete item two. With the aforementioned areas complete, it is now time to locate a producer and market for the proposed products. During this phase we also may initiate the financial inquiry areas in lieu of capital funding and additional possible sources ie; government assistance programs. Note: Exact breakdown of work schedule not possible to identify at this point, without having documentation from phase one and two. Phase Four 60-90 days Phase four shall integrate all aforegoing information with item 1,2, 3,4,5, 6,6A complete, we have support documentation to proceed and complete research items 7,8,9,10. (Note: Through phase four's duration may be up to 90 days, monthly progress reports shall be maintained) Our estimate for this project is $48,000. Creek Industries has spent approximately $8,700 on this area to date on in house studies. Sincerely, );-;tJ~~ --?Z~ Parker Nielsen Vice President ~ Publish - The Paris News July 20, 1988 July 21, 19~' :,J Ju ly 22, 1988'....' " "~ . LEGAL NOTICE The City of Paris will received proposals for Professional Consultants to develop a Food Processing Plant feasibility study. The work items will include, but not be limited to, the following: 1. Determine the crops that are being produced in the area at present that would be suitable for processing and identify the processed food product lines ( fresh, canned, frozen, dry, etc.) that will be most cost-effective and produce for the greatest return, as well as market capacity and feasibility for the types of foods identified. 2. Identify those producers who would be willing to participate in a vertically integrated, producer-controlled, food processing plant. 3. Determine the products that can be compatibly produced in a single facility. 4. Determine how much initial funding a co-op might generate, and who is willing to pledge that funding. 5. Determine the appropriate size and arrangement necessary for the facility to allow maximum production. 6. Determine the feasibility of adaptive re-use of available properties as to function and as to ability to comply with the Secretary of the Interior's Standards for Rehabilitation, if necessary, and an estimate of the costs involved. 6.a ENVIRONMENTAL ADDENOUM: (Due at Midpoint of the study. Prepare an environmental analysis and comparison of the proposed sites. Include the following: the impact on existing utilities and infrastructure (especially the current availabil ity, supply, and capacity of the water and waste water facilities), traffic, 100 year flood plains, and historic and/or archeological resources. 7. Identify additional resources and sources of funding that are available for capital expenditures, operational assistance, and product marketing. 8. Determine the approximate number and kinds of jobs that will be created as a result; in the field (on the farm), in the plant, for transportation and shipping, and in management and marketing. 9. Determine the capital investment that will be required at each phase, including building acquisition, building restoration or construction, equipment and machinery, vehicles, production diversification or acceleration, marketing, etc. " 10. Oetermine options for structuring ownership and operatton af the proposed plant, i.e. cooperative, non-profit corporat ;'on'; '1 imlted partnership, private corporation, etc., and the benefits and drawbacks of each. Proposal should include resumes of each participating consultant. Further information may be secured at the Main Street Director's office, City Hall, City of Paris, 135 S. E. 1st, Paris, Texas. Proposals will be received through July 27, 1988, 5:00 P. M. '-\'<'.~.'''' ~~ MATTIE CUNNINGHAM City Clerk, City of Paris """" '. . . I FONM EO..J31 fREV.3-771 U.S. DEPARTMENT OF COMMERCE Economic Development Administration Office of Technical Assistance SPECIAL TERMS AND CONDITIONS ,--. i .1 .. ," . For Technical Assistance Grant under Title III, Section 301(a) of the Public Works and Economic Development Act of 1965, as Amended EFFECTIVE DATE: July 1, 1988 GRANT NO: 08-06-02603 TITLE: Food Processing Plant Feasibility Study GRANTEE/ADDRESS: City of Paris Main Street project P.O. Box 1037 Paris, Texas 75460 GRANT ADMINISTRATOR/ADDRESS: Regional Director Austin Regional Office Economic Development Administration 611 E. 6th Street, Suite 201 Austin, Texas 78701 I. TOTAL AUTHORIZED BUDGET: Federal Cash Contribution Grantee Cash Contribution Grantee In. Kind Contribution Total Authorized Budget -$ -$ -$ -$ 36,500 -0- 12,167 48,667 USCOMM-CC 6381$oopn GRANT NO. 08-06-02603 V. SCOPE OF WORK: The Scope of Work of the Grantee under this grant--the term of ;which is eight months, including six months for the work program, plus additional time needea-tO meet reporting and other procedural requirements--shall be the following: Professional consultants will be utilized to develop a food processing plant feasibility study. The work items will include, but not be limited to, the following: 1) Determine the crops that are being produced in the area at present that would be suitable for processing and identify the processed food product lines (fresh, canned, frozen, dry, etc.) that will be most cost-effective and produce for the greatest return, as well as market capacity and feasibility for the types of foods identified. 2) Identify those producers who would be willing to participate in a vertically integrated, producer-controlled, food processing plant. 3) Determine the products that can be compatibly produced in a single facility. 4) Determine how much initial funding a co-op might generate, and who is willing to pledge that funding. 5) Determine the appropriate size and arrangement necessary for the facility to allow maximum production. 6) Determine the feasibility of adaptive re-use of available properties as to function and as to ability to comply with the Secretary of the Interior's Standards for Rehabilitation, if necessary, and an estimate of the costs involved. 6a) ENVIRONMENTAL ADDENDUM: (Due at midpoint of the study. environmental analysis and comparison of the proposed sites. following: the impact on existing utilities and infrastructure the current availability, supply, and capacity of the water and facilities), traffic, lOa year flood plains, and his tori c archeological resources. Prepare an Include the ( especially waste-water andlol' 7) Identify additional resources and sources of funding that are available for capital expenditures, operational assistance, and product marketing. 8) Determine the approximate number and kinds of jobs that will be created as a result: in the field (on the farm), in the plant, for transportation and shipping, and in management and marketing. 9) Determine the capital investment that will be required at each phase, including building acquisition, building restoration or construction, equipment and machinery, vehicles, production diversification or acceleration, marketing, etc. 10) Determine options for structuring ownership and operation of the proposed plant, Le. cooperative, non-pro fi t corpora tion, limited partnership, private corporation, etc., and the benefits and drawbacks of each. 5 ATTACHMENT B Project No. 08-06-02603 VI. SPECIAL CONDITIONS: , , A. Continuation Grants - NO obligations shall b"e"cre'ated by Recip~ent for any purpose pertaining to the operation of the program or activities for which the funds were awarded where the obligation would require performance beyond the expiration date stipulated in the award document. Funds may only be expended beyond the expiration date for activities such as the preparation of final reports and documents directly associated with the closeout of the awards in accordance with OMB Circulars A-IIO or A-I02, and for obligations properly created prior to the expiration date that require expenditures beyond the expiration date. Verbal or written assurances of refunding shall not constitute authority to obligate funds for programmatic activities beyond the expiration date. Funds shall not be obligated unless or until an award document is received by the Recipient from the Grants Officer. B. The Grantee hereby agrees that no funds made available from this grant shall be used, directly or indirectly, for paying attorneys' consultants' fees in connection with securing this grant or cooperative agreement (as apropriate) or other grants or cooperative agreements from EDA. For example, funds could not be used for preparing the applications for this or other EDA assistance. However, attorneys' and consultants' fees incurred for meeting grant requirements such as, for example, conducting a title search or preparing plans and specifications, may be eligible project costs and may be paid out of funds made available from this grant or cooperative agreement (as appropriate), provided such costs are otherwise eligible. C. Pursuant to Section 504 of the Rehabilitation Act of 1973, the Grantee must provide fair and equitable treatment for the handicapped. The Recipient will comply with the Depart- ment of Commerce regulations, 15 CFR Part 8b, implementing Section 504. This regulation protects the rights of handicapped persons and establishes a mandate to end discrimination. D. INTEREST EARNED ON FEDERAL ADVANCES: This Grant is subject to the revision of OMB Circular A-lIO, which was published in the Federal Register on February 10, 1987, requiring recipients of Federal financial assistance to maintain advances of Federal funds in interest bearing accounts (copy of revision attached). Interest earned on Federal advances deposited in such accounts (with the exception of $100 per year, which may be retained for administrative expenses) shall be remitted promptly, but not less frequently than Page 2 SPECIAL CONDITIONS Project No. 08-06-02603 quarterly. All checks submitted should be made' oilt, 'to the Economic Development Administration and should identify on their face the EDA project number, followed by the word INTEREST, in order to identify the check in question as remittance of interest income. The checks should be mailed to: ECONOMIC DEVELOPMENT ADMINISTRATION P.O. BOX 100202 ATLANTA, GEORGIA 30384 , " U. S. DEPARTMENT OF COMMERCE RESEARCH AND EVALUATION ECONOMIC DEVELOPMENT ADMINISTRATION OFFICE OF PLANNING, TECHNICAL ASSISTANCE, GENERAL TERMS AND CONDITIONS For Technical Assistance Grants and Cooperative Agreements under Section 30lla) of the Public Works and Economic Development Act of 1965, as amended. Revised May 1985 1C' (k) when conducting business with the Federal Government, must comply with Federal Government Procurement Regulations. OMB A-I02: Refers to Office of Management and Budget Circular A-I02 (Revised), which sets forth uniform administrative requirements for grants-in-aid to State and local governments. " " (1) OMB A-IIO: Refers to Office of Management and Budget Circular A-IIO, which sets forth uniform administrative requirements for grants and agreements with institutions of higher education, hospitals, and other nonprofit organizations. (II) OMB A-87: OMB Circular A-87, formerly known as Federal Management Circular 74-4, which sets forth cost principles applicable to grants with State and local governments. (n) OMB A-21: Refers to OMB Circular A-21, formerly known as Federal Management Circular 73-8, which sets forth cost principles applicable to grants with educational institutions. (0) FPR 1-15.2: Refers to Federal Procurement Regulations, Subpart 1-15.2, 'Principles and procedures for Use in Cost-Reimbursement Type Supply and Research Contracts With Commercial Organizations' which will govern cost principles applicable to grants with for-profit organizations until so notified otherwise by the GRA. (p) OMB A-122: Refers to OMB Circular No. A-122 which sets forth the cost principles applicable to grants, contracts, or other agreements with nonprofit organizations. (q) OMB A-88: Refers to OMB Circular A-88, formerly known as Federal Management Circular 73-6, which sets forth policies for establishing indirect cost rates, auditing, correcting systems deficiencies, and resolving questioned costs. Some of the terms and conditions herein contain by reference or substance a summary of pertinent statutes or of regulations published in the Code of Federal Regulations. To the extent that it is a summary, such term or condition is not in derogation of, or an amendment to, the regulation issued by a Federal agency. All statutes or regulations whether or not referenced herein are to be applied as in effect on the date they are administered. 2. STATUTORY REQUIREMENTS The Grantor shall be under no obligation to disburse funds unless the Grantee is in compliance with the following requirements: a. The Grantee and any subgrantee or consultant/contractor employed under this grant or cooperative agreement shall comply with all applicable Federal, State, Territorial, and local laws, and in particular the following Federal laws and regulations issued thereunder: (1) Those portions of the Public Works and Economic Development Act of 1965, as amended, P.L. 89-136, 42 U.S.C. 3121, et seq., and regulations found at 13 CFR Chapter III, that apply to subsection 301(a) grants. ~QAIED JANUARY 1981 EDITION - 2 - (2) Title VI of the Civil Rights Act of 1964, as amended (42 USC 2000d-2000d-4), Executive Orders 11114, 111246 and 11375, 41 CFR Part 60-4, P.L. 92-65, Section 112, 13 CFR 311.40-43 as amended, and any regulations EDA or the Department of Commerce might issue pursuant to the Age Discrimination Act of 1975, 42 USC 6101~ etse9" and such other civil rights legislation as is applicable. (3) Section 504 of P.L. 93-112 (29 USC 794) and the implementing regulations found at 15 CFR, Part 8B. (4) The Clean Air Act as amended (42 D.S.C. 7401, et seq.): See section 18 of these General Terms and Conditions. (5) The Federal water Pollution control Act, as amended (33 U.S.C. 1251, et seq.): see section 18 of these General Terms and Conditions. (6) The Endangered Species Act, as amended (16 U.S.C. 1531, et seq.). (7) The Coastal zone Management Act of 1972, as amended (16 U.S.C. 1451, et seq.). (8) The Wild and Scenic Rivers Act, as amended (16 U.S.C. 1271, et seq.). (9) The Historical and Archaeological Data Preservation Act, as amended (16 U.S.C. 469). (10) Executive Order 11990, Protection of Wetlands (May 24, 1977): and Executive Order 11988, Floodplain Management, May 24, 1977, and regulations and guidelines issued thereunder by the Economic Development Adminstration; See Section 19 of these General Terms and Conditions. (11) National Environmental Policy Act of 1969 (P.L. 90-190): the National Historic Preservation Act of 1966 (16 U.S.C. 470): and Executive Order NO. 11593 of May 13, 1971, and all pertinent rules and regulations issued thereunder: See Section 19 of these General Terms and Conditions. (12) Executive Order No. 12372 (replaces OMB Circular A-95). b. All assurances, certifications and related documents in this section, provided by the Grantee to satiSfy the statutory needs of the grant, shall continue in full force and effect and be applicable to any Grant modification or amendment thereto: and, therefore, no further assurances, certifications and related documents shall be required. 3. GENERAL REQUIREMENTS AND PROHIBITIONS a. OMB Circular A-I02: state and local government grantees and the Grantor accept and shall apply the standards and provisions set forth in Office of Management and Budget Circular A-102 Revised (OMB A-I02), .Uniform Administrative Requirements for Grants-in-Aid to State and Local Governments,. and its attachments in effect on the date of this grant agreement. In the event of conflict between A-I02 and enabling legislation, the latter shall prevail. - 3 - , ~ b. OMS Circular A-llO: Nonprofit, nongovernment grantees and the Grantor accept and shall apply the standards and provisions set forth in Office of Management and Budget Circular A-IIQ 10MB A-IIQ), .Grants and Agreements with Institutions of Higher Education, Hospitals, and Other non-profit Organizations,. and its attachments, as amended. In the event of conflict between A-IIQ, as amended, and enabling legislation, ~he latter shall prevail. . ," c. Grant Terms and Conditions: The Grantee and any subgrantee or consultant/contractor employed under this grant shall comply with the Grant Offer and all Terms and Conditions thereto. The decision of the Grantor in interpreting the terms and conditions of this grant shall be final. d. Duplication of Work: The purpose and scope of work for which this grant is made shall not duplicate programs for which monies have been received, are committed, or are applied for from other sources, public or private. Upon request of the Grantor, the Grantee shall submit full information about related programs that may be initiated within the grant period. e. Work started or Completed: No funds provided under this grant shall be used to pay for cost of any work started or completed prior to the effective date of this grant. f. Other Funding Sources: Federal-share funds granted for this program shall not be used to replace any financial support previously provided or assured from any other source. The Grantee agrees that the general level of expenditure by the Grantee for the benefit of program area and/or program designated in the Special terms and Conditions of this grant, or any amendment or modification thereto, shall be maintained and not reduced as a result of the Federal-share funds received under this grant. g. Relocation Activities: No part of the total budgeted funds, whether in cash or in-kind, for grant assistance under PWEDA shall be used, either directly or indirectly, to assist, solicit, or encourage the relocation of any establishment from one area to another, or to assist, solicit or encourage the transfer of contract or subcontract work, which would result in a transfer of jobs causing unemployment at the location where such work was previously performed. Nor may the Grantee payout of such budgeted funds any part of the compensation or expense of employees who may at any time engage in such activities. h. Officials Not to Benefit: No member of or delegate to congress or resident Federal Commissioner shall be admitted to any share or part of this grant, or to any benefit that may arise therefrom. This provision shall not be construed to extend to this grant if made to a publicly held corporation for its general benefit. i. Refunds of FICA/FUTA Taxes: Grantee agrees that refunds of FICA/FUTA Taxes received during or after the grant period will be refunded or credited to the Federal Government if such payments were financed by Federal funds under this grant. Refunds should be mailed to the Grant Administrator, but made payable to the Treasurer of the united states. - 4 - I , i ! i I I - "------ 4. BONDING/PAYMEIlr OP PUNDS a. Prior to payment of funds hereunder, the Grantee shall inform the GRA as to what provision they have for fidelity bond coverage of persons authorized to handle funds under this grant. This is to assure the GRA that the Government's interest is protected. .' " b. Payments of funds available through this grant can be made through reimbursement by U.S. Treasury check, an advance by Treasury check, or by letter-of-credit in accordance with OMB A-I02, Attachment J, or OMS A-IIO, Attachment I, as applicable, and as agreed upon by the GRA and Grantee. 5. BANK/POND ACCOOIlrS a. The requirement for bank/fund accounts shall be in accord with Attachment A of OMS A-I02 or of OMS A-IIO as applicable. b. When a letter of credit is the instrument for payment, the establishment of a separate bank account is required. otherwise the application of funds is subject to the requirements of Attachment G of OHB A-I02 or Attachment F of OMS A-IIO as applicable. c. Upon completion of all required work under the grant or other agreement, the grantee shall immediately refund to the grantor any balance of unobligated (unemcumbered) cash advanced or paid to the grantee that is not authorized to be retained by the grantee for use on other grants. 6. PERSONNEL APPROVALS The Grantor reserves the right to approve or disapprove the qualifications of professional-level employees of the Grantee remunerated by the pederal share of this grant. Resumes, in sufficient detail to reveal the experience, education and other general and special qualifications for the position, must be submitted to the GRA for consent prior to employment of a candidate. 7. PINANCIAL MANAGEMENT SYSTEM, RECORDS, REPORTS, AND AUDITS a. The Grantee shall maintain a financial management system in accordance with the standards prescribed in OMS A-I02, Attachment G or OMS A-IIO, Attachment P, as applicable. b. The Grantee shall retain financial records as well as supporting documents and all other documents pertinent to the grant in accordance with Attachment C of OKS A-I02 or OMB A-IIO, as applicable. c. pinancial reports shall be submitted as called for in the Special Terms and Conditions and in accordance with Attachment H of OMB A-I02 or Attachment G of OHB A-IIO, as applicable. d. Audits: (1) Audits are to be performed in accordance with the applicable requirements of OMB Circular No. A-I02, Attachment P, or A-lID, Attachment P. The Grantee agrees that a financial and compliance audit on an organization-wide basis will usually be performed annually, but not less frequently than every two years. - 5 - .. -.. ~.-- ~, ~-_...-'--~- .- ,,- - _.-.~'.'---'- .~, -~ ~. ,.,~ -'. ~.._ . .!IE"-..r,,-..- -. ~"'-'-""'.'-.r' (2) The Grantee will assure that audits are made in accordance with the General Accounting Office Standards for Audit of Governmental Organizations, Programs, Activities and Functions, the Guidelines for Finandal and Compliance Audits of Federally Assisted Programs,any compliance supplements approved by OMB and generally a~cepted auditing standards established by the American Institute of Certified Public Accountants. (3) The Grantee agrees to engage an auditor that meets the qualification requirements set forth in the General Accounting Office Standards for Audit of Governmental Organizations, Program Activities and Functions in accordance with the applicable procurement requirements of Attachment 0 to OMB Circular No. A-l02 or A-llO. Non-governmental auditors must be either independent certified public accountants or independent licensed public accountants, licensed on or before December 31, 1970. (4) The audit report should be submitted to the cognizant Federal audit agency, or, if the grantee does not have such an audit agency, to the Director, Office of Planning, Technical Assistance, Research and Evaluation, Economic Development Administration, Room H-7866, Herbert C. Hoover Building, Washington, D. C. 20230. (5) Grantee will obtain assurance that the auditor will retain, for a minimum of three years from the date of the audit report, the audit workpapers and reports unless the auditor is notified in writing by the cognizant Federal audit agency of the need to extend the retention period. The Grantee will obtain assurances that the audit workpapers will be made available upon request to the cognizant Federal audit agency or its designees and the General Accounting Office or its designees. (6) AS required by Department of Commerce Administrative Order 213.5, Audit Follow-up and Resolution, the Grantee is expected to respond to any questioned costs and other audit findings and provide additional documentation to support such response within 30 days after the receipt of an audit report from the Office of Inspector General. EDA will consider any response or documentation received during this 30-day period in reaching its final determination concerning eligibility of costs; any Grantee response or documentation received by EDA more than 30 days after Grantee receipt of the audit report, and before EDA'S final determination, may be considered. EDA'S final determination shall be in writing and furnished to the Grantee. I \ Actions that result from EDA's final determination, such as the establishment of a debt or claim against the grantee, are not subject to appeal within EDA. 8. PERFORMANCE REPORTS a. Performance reports shall be submitted to the GRA as called for in the Special Terms and Conditions and in accordance with Attachment I of OMS Circular A-l02 or Attachment H of OMB Circular A-llO, as applicable. - 6 - b. Final performance reports prepared by the Grantee, or by any consultant/contractor paid for under this grant, shall carry, unless waived by the GRA, an EDA framed logo on the covers, a disclaimer on the title page, and follow any other requirements related ,1:'0' da.ti,ng, format, binding, etc., as may be specified by the GRA when authorfzing final report preparation. c. Reports by the Grantee, or by any consultant/contractor paid for under this grant, shall not be publicly released without meeting the publication requirements of Section 22 below. 9. ALLOWABLE COSTS a. The Grantor shall reimburse the Grantee for the necessary, reasonable, allowable and allocable costs incurred in the performance of the grant program in conformity with these General Terms and Conditions, the Special Terms and Conditions and the grant bUdget. Unless specifically waived by the Grantor, in no event shall the Federal-share funds exceed that percentage of the total eligible expenses of the Grantee allowed by current statute under this grant. b. Grantee costs chargeable under this grant must also be in accord with one of the following: (1) Provisions of OMB A-87, as in effect on the effective date of this grant, if the Grantee is a state or local government unit; (2) Provisions of OMB A-2l, as in effect on the effective date of this grant, if the Grantee is an educational institution. (3) Provisions of OMB A-122, as in effect on the effective date of this grant, if the Grantee is a nonprofit organization. (4) Provisions of Federal procurement Regulations subpart 1-15.2, as in effect on the effective date of this grant, unless otherwise notified by GRA, if the Grantee is a for-profit organization. c. Grantee acknowledges that the Grantor shall have final determination of allowable and reimbursable costs under this grant program. 10. REIMBURSEMENT FOR TRAVEL Use of grant funds for travel, which is determined as being necessary to the program for which the grant is established, may be subject to the travel policies of the Grantee institution if they are uniformly applied regardless of source of funds in determining the amounts and types of reimbursable travel expenses of Grantee staff and consultants, and if they meet the requirements of OMB A-87, Attachment B, Item 28, or OMB A-21, Section J-43. Where the grantee institution does not have such specific policies uniformly applied, the U.s. Standard Government Travel Regulations shall apply in determining the amount charged to the grant. a. Any costs expected to be incurred for travel out of the geographic area to be served by this grant program must have the prior approval of the GRA. - 7 - --. _J~ - 'V' 11. EXPENSES AND PURCHASES EXCLUDED a. In no event shall the Grantee expend or request reimbursement from Federal-share funds for obligations entered into or for c9~ts. incurred or accrued prior to the effective date of this grant. b. Funds budgeted under this grant may not be ~sed for entertainment expenses. c. Except as provided below, funds budgeted under this grant may not be used to pay for capital assets, such as the purchase of real estate or vehicles, improvement and renovation of space, and repair and maintenance of privately-owned vehicles. d. Grantee may purchase furniture and office equipment only if specifically approved in the Special Terms and Conditions or in writing by the GRA. Approval will be given only when Grantee demonstrates that purchase would result in less cost to the Government in providing Federal-share funds or to the Grantee in providing its contributions. Attachment N of OHB A-102 and OMB A-llO, respectively as applicable, will be observed in the management of the property approved for purchase under this grant. e. The cost of membership in professional organizations for Grantee staff or officials is excluded, except when (1) the benefit derived from membership is related to the grant program, (2) the membership is in the name of the organization, institution, or agency, (3) the cost is reasonably related to the value of the services or benefits received, and (4) the cost is not for membership in an organization which devotes a substantial part of its activities to influencing legislation. 12. USE OF CONSULTANTS/CONTRACTORS a. Procurement of consultant or contractor services shall be in accord with all standards and procedures set forth in Attachment O-Revised, 'Procurement Standards' OMB A-I02 and Attachment 0 of OHB A-IIO, as applicable. b. The standards set forth in Attachment 0 do not relieve the Grantee of the contractual responsibilities arising under its contracts. The Grantee is the responsible authority, without recourse to EDA, regarding the settlement and satisfaction of all contractual and administrative issues arising out of procurements entered into in support of the grant. c. All proposed sole source contracts must meet the requirements of the revised (January 1981) Attachment '0' to OHB Circular A-I02, which allows non-competitive negotiation if one of four circumstances exist. d. Grantee procurement procedures under this grant may be subject to review by the Grantor. 13. GRANTEE CONTRIBUTIONS a. Contributions by the Grantee, whether in cash or in-kind, are expected to be paid out at the same general rate as Federal funds. In any event, one-half of the Grantee's share of project costs shall be available, - 8 - incurred, or expended by the time one-half of the Federal share has been disbursed. Exceptions to this mid-point, pro rata requirement must be approved in writing by the GRA. b. Specific procedures for valuation of in-kind contribut~qns are given in Attachment F of OMB A-l02 and Attachment E of OMB A-~lO~ as,applicable. Where the Grantee shall have claimed credit for contributlons-in-kind to the total cost of allowable expenses, the evaluation of such contributions-in-kind shall be subject to reevaluation by the Grantor at any time, and any deficiency so determined by the Grantor shall be compensated by supplemental contributions by the Grantee as a condition for further disbursement by the Grantor. 14. INTEREST a. Excluding States, but not excluding political subdivisions of states, any interest earned on funds paid to the Grantee under this grant shall be reported and returned to the Government within ten days after receipt of such interest according to directions specified by the GRA. b. standards to be applied in accounting for program income are set forth in Attachment E of OMB A-l02 and Attachment D of OMB A-llO, as applicable. 15. BUDGET AND STAFFING MODIFICATIONS a. Attachment K of OMB A-l02 and Attachment J of OMB A-110 set forth the criteria and procedures for requesting budget revisions. The written approval of the GRA is required when the Federal share of a grant exceeds ,100,000 ~ the cumulative amount of line item budget transfers exceeds or is expected to exceed five percent of the total budget. Approval will be given only when the requested changes serve the same purpose as the original grant. This includes situations in which one line item can be reduced without significant adverse effect on the purpose of that item, but at the same time another line item must be increased in order to accomplish its particular objective. b. Time extensions may be offered by the GRA in the form of a grant amendment if (1) the grantee has shown reasonable progress with the project activity and (2) there is good reason for the grantee's inability to complete the required work by the specified date. c. Any increase in the EDA funds must have prior approval of the Grantor and be accomplished through a formal written amendment to the Grant. 16. SUSPENSION AND TERMINATION a. When a Grantee has failed to comply with the grant award stipulations, standards, or conditions, including financial, progress and any other reporting requirements set forth in the Special and General Terms, the Grantor may, on reasonable notice to the Grantee, suspend the grant, and withhold further payments, or prohibit the Grantee from incurring additional obligations of grant funds, pending corrective action by the Grantee or a decision to terminate in accordance with the following paragraphs. The Grantor may allow all necessary and proper costs which the Grantee could not reasonably avoid during the period of suspension, provided they meet the allowable cost provisions of OMB A-87 or OMB A-21, as appropriate. - 9 - b. The Grantor may terminate any grant in whole, or in part, at any time before the date of completion, whenever it is determined that the Grantee has failed to comply with the conditions of the grant (termination for cause). The Grantor shall promptly notify the Grantee in writing of the determination and the reasons for the termination, togethe~,with the effective date. " . c. The Grantor or the Grantee may terminate the grant in whole, or in part, when both parties agree that the continuation of the project would not produce beneficial results commensurate with the further expenditure of funds (termination for convenience). The two parties shall agree upon the termination and conditions, including the effective date, and in the case of partial terminations, the portion to be terminated. The Grantee shall not incur new obligations for the terminated portion after the effective date, and shall cancel as many outstanding obligations as possible. The Grantor shall allow full credit to the Grantee for the Federal share of the noncancelable obligations, properly incurred by the grantee prior to termination. d. Other grant suspension and closeout procedures set forth in Attachment L to OHB A-I02, or Attachments K and L of OHB A-IIO, as amended, and as appropriate, shall also apply. 17. SURVEYS AND QUESTIONNAIRES Any survey, i.e., the solicitation of the same or similar information from ten or more firms or persons other than Federal employees, undertaken under Federal sponsorship or when the Grantee represents to respondents that the information is being collected for, or in association with, a Federal agency, shall not be conducted without the prior approval of the Grant Administrator. Depending on the nature and purpose of the proposed survey, the Grant Administrator may require that the Grantee submit its questionnaire, survey plan and techniques, or other technical documents to the Grant Administrator for clearance by the Office of Management and Budget (OMB) in accordance with Attachment A to OMB Circular No. A-40 'Clearance of Public Reporting and Recordkeeping Requirements Under the Federal Reports Act.' 18. CLEAN AIR AND WATER ACTS The Grantee agrees to comply with and observe the requirements set forth in the Clean Air Act (42 U.S.C. 7401) and the Federal water Pollution Control Act, as amended (33 U.S.C. 1251), and to report all violations pursuant to the signed ED-524. under the terms of this certification, the term 'facility' applies to any building, plant, installation, structure, mine, vessel, craft, location or site operations. The certification shall also apply to contractors, subcontractors, consultants or other parties benefitting directly from the financial assistance. 19. PHYSICAL IMPACT REQUIREMENTS a. Where the scope of the technical assistance grant includes site feasibility or potential construction activity, or the consideration of alternative actions, the Grantee agrees that in carrying out such a study, he/she will endeavor to discover any possible effect upon historical/archaeological properties and will coordinate this effort through the State Historic preservation Officer. - 10 - ;r~'X':~T- ~. ~.~ -- _~"""",="""""~'''''''''''''''',m~~',,",M~ "Kili"E..'C---- ~"~..,. ...--.......... ~~=...,...,.,,="".J.~.". b. The Grantee shall identify the location and extent of floodplains and wetlands within the study area based on published data in order to consider the impacts of the study alternatives on floodplains and wetlands values and functions. por any action issued which has the potential to impact a floodplain or a wetland, a thorough examination of alternatives which avoid or mitigate this impact shai+,;'b~. incorporated into the scope of such study. ' c. The Grantee further agrees, when the scope of the study will result in the potential for construction activity or site feasibility, that due consideration will be incorporated in such study to assess any potential impact as may be applicable under Pederal environmental statutes listed in 2.a-b (ref. pages 2 and 3). The Grantee understands that future Pederal financial assistance may not be allowable for projects which cannot meet such requirements. 20. AVAILABILITY OP INPORMATION The Grantee agrees that all information resulting from its activities and not exempt from disclosure under the preedom of Information Act, 5 U.S.C. 522, shall be freely available to the public. 21. COPYRIGHTS AND PUBLICATION REQUIREMENTS a. Copyrights (1) Prohibition Copyright is prohibited in works, including a part or parts thereof, funded under Government contracts, grants or cooperative agreements ("financial assistance") which have been prepared by recipients of such financial assistance. Works consist of all, part, or parts of documents and other material fixed in a tangible medium of expression, which are required to be delivered to EDA under this financial assistance document. Works include, but are not limited to: a) literary works, which are works other than audiovisual works expressed in words, numbers, or other verbal or numerical symbols or indicia, regardless of the nature of the_material objects, such as books, periodicals, manuscripts, phono records, film, tapes, disks, or cards, in which they are embodied: b) computer printouts and programs; c) pictorial and graphic works; d) motion pictures and other audiovisual works; and e) sound recordings. Recipients include recipients (and employees thereof) of EDA contracts, grants, cooperative agreements, and any subcontractors and subgrantors thereunder. (2) waiver (a) The Director, Office of Planning, Technical Assistance, Research and Evaluation (OPTARE), SUbject to approval by the Chief Counsel and the Deputy Assistant Secretary (DAS) or a designee, may waive the copyright prohibition with respect to works of recipients of financial assistance, but only under exceptional circumstances, such as but not limited to the following: when EDA is advised in writing that, because the non-government publisher loses a specified - 11 - protection not otherwise available, such work will not be accepted by it unless it solely is assigned the copyright; or when the work discusses and describes new industrial, technological, and/or manufacturing matters, but not including management or accounting matters. ,. , .. (b) If copyright by a recipient is permitted by OPTARE and '~pproved by the DAB or designee, then EDA shall be given a royalty-free, non-exclusive and irrevocable license to reproduce, publish, translate, and dispose of such work, and to authorize others to so use the work. (3) Works of Third Parties (a) An appropriate notice must be provided of copyrighted material of a third party which has been incorporated into a final report. An appropriate notice must contain the following three elements: (i) the symbol c (the letter c in a circle), or the word "Copyright", or the abbreviation "Copr"; and (ii) the year of first publication of the work; in the case of compilations or derivative works incorporating previously published material, the year of the first publication of the compilation or derivative work, is sufficient; and (iii) the name of the owner of copyright in the work, or an abbreviation by which the name can be recognized, or a generally known alternative designation of the owner. (b) The Government shall use its best efforts to have said notice reproduced on any publication by it of such material or work. (c) The recipient agrees to exert all reasonable efforts to advise the Government, at the time of delivery of the final report or other work prepared under the assistance award, of any work under copyright or eligible for copyright, furnished under this financial assistance document, or of any adversely held material under copyright, or eligible for copyright, incorporated in such work. b. Publication ReqUirements (I) When copyright protection is not granted to the recipient of financial assistance, EDA will permit said recipient to publish the final report or other work subject to the exceptions noted in subparagraph b. (2) below, as follows: (a) if, within 120 days from acceptance of the final report or other work, the GRA gives specific written authorization for publication of the work: or (b) if the United states Government has previously published all or part of the work, then the recipient is free to publish those parts previously published by the Government; and - 12 - (c) if a disclaimer provision is provided on the title page as follows: "This report (work) was prepared pursuant to the receipt of financial assistance from the United States Government. The statements, findings, conclusions, recommendations, and other data in the report (work) are sol~~' tboae of , the recipient, and do not necessarily reflect the views of the united States Government"; and (d) if copyrighted works of a third party are incorporated into the final report or other works, an appropriate notice thereof is provided as required in subparagraph 3. (a) above. (2) There. shall be no publication of any part or parts of the final report, or other work, which may be exempt under the Freedom of Information Act (FOIA) (namely,S U.S.C. 552(b)(4) involving confidential business or financial information which may cause substantial competitive harm; 5 U.S.C. 552(b)(5) involving EDA's internal memoranda containing opinions and recommendations used in its administrative deliberative process; and 5 U.S.C. 552(b)(6) involving material which would constitute a clearly unwarranted invasion of personal privacy). (3) In the event that EDA does not intend any further changes to the final report, or other work, and does not want to publish the final report, or other work, itself, or to authorize the recipient to do so, such final report, or other work, is nevertheless obtainable to a limited extent except as exempt under the FOIA, as described in subparagraph b. (2) above. with regard to FOIA non-exempt portions of final reports in this category, the disclaimer and notice provisions (see subparagraphs b. (1) (c) and (d) above), must appear on the title page, followed by the following language: - 13 - "The United States Government has not approved this work for publication." (4) Except for works or parts thereof that are exempt pursuant to subparagraph b. (2) above, the recipient may otherwise disseminate the substance of the information developed during the course of the financial assistance, through, but not limited to, speeches, articles, papers, and testimony, upon prior notification of such dissemination, to the Office Director. publication of other articles or papers etc., that reference the final report shall be accomplished with the disclaimer and notice provided in subparagraphs b. (1) (c) and (d) above. c. Privacy and Infringement (1) The recipient shall agree to advise the Office Director whenever it becomes aware of any claim of invasion of the right of privacy involving work under the financial assistance document or work of a third party that has been incorporated therein. The recipient agrees to report in writing, to the Office Director, promptly and in reasonable detail, any notice or claim of copyright infringement received by the recipient with respect to any material delivered under the financial assistance document. I~' - d. Rights in Data All research, data, and other recipient generated work products that were used or created in developing each of the drafts and the fi~al report shall remain available to the Government for a period of, ,th.r~e. ,:rears. e. Recipient's Subcontracts/Subgrants with Third Parties The recipient shall insert in each subcontract or subgrant involving work to be performed under the financial assistance document, provisions making this copyright paragraph applicable to the subcontractor and/or, subgrantee and/or its employees. 22. PATENT RIGHTS When applicable, the appropriate clause, checked below, of Federal Acquisition Regulation (FAR) 49 F.R. 12972, March 30, 1984, effective April 1, 1984, is incorporated by reference. Part 27 of the FAR contains the following three patent rights clauses to be used in various circumstances: Clause ~ Conditions U 52.227-11 Retention by the Contractor (Short Form) Small business or non- profit organization U 52.227-12 Retention by the Contractor (Long Form) Other than small business non-profit organization I I 52.227-13 Acquisition by the Government Exceptional circumstances - 14 - -1