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for work in connection with the project be awarded to business concerns which are located in, or owned in <br />substantial part by persons residing in the areas of the project. <br /> <br />The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent <br />compliance with the requirements. <br /> <br /> (2) Notifications. The Subrecipient agrees to send to each labor organization or <br />representative of workers with which it has a collective bargaining agreement or other Agreement or understanding, <br />if any, a notice advising said labor organization or worker's representative of its commitments under this Section 3 <br />clause and shall post copies of the notice in conspicuous places available to employees and applicants for <br />employment or training. <br /> <br /> (3) Subcontracts. The Subrecipient will include this Section 3 clause in every <br />subcontract and will take appropriate action pursuant to the subcontract upon a finding that the sub-Subrecipient is <br />in violation of Regulations issued by the grantor agency. The Subrecipient will not subcontract with any sub- <br />Subrecipient where it has notice of knowledge that the latter has been found in violation of regulations under 24 <br />CFR 135 and will not let any subcontract unless the sub-Subrecipient has first provided it with a preliminary <br />statement of ability to comply with the requirements of these regulations. <br /> <br />2.6 Environmental Requirements. Lead Based Paint. In accordance with 24 CFR Part 570.608, the <br />Subrecipient shall be prohibited from using lead-based paint in residential structures rehabilitated with Community <br />Development Block Grant funds. Lead-based paint is any paint containing more than five-tenths of one percent (5/10 of <br />1%) lead by weight in the total non-volatile content of liquid paints or in the dried film of paint already applied. <br /> <br /> 2.7 Further Responsibilities of Parties. Both parties agree to use reasonable care and diligence to <br />perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all <br />instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes <br />of this Agreement. Unless hereafter specified, neither party shall be responsible for the obligations of the other. <br /> <br />3.0 DISBURSEMENT OF FUNDS <br /> <br />3.1 Maximum Amount of CDBG Funds. The maximum amount of CDBG funds to be provided to <br />Subrecipient is $150,000 [one hundred fifty thousand dollars] in the form of a grant. Subrecipient hereby <br />acknowledges that the City cannot guarantee that the CDBG funds will be received from HUD. The City's obligation <br />to fund the work hereunder is limited to the availability of CDBG funds from HUD. If the CDBG funds are not <br />forthcoming from HUD for any reason, the City shall not have any obligation to fund the work through any other <br />source of funds. <br /> <br />3.2 Maximum Amount of General Funds. Not applicable. <br /> <br />3.3 Termination of Fund Obligation. The services to be provided under this Agreement may be <br />terminated without cause at any point in time in the sole and exclusive discretion of City. In this event, City shall <br />compensate the Subrecipient for all outstanding costs incurred for work satisfactorily completed as of the date of <br />written notice thereof. Subrecipient shall maintain adequate logs and timesheets in order to verify costs incurred to <br />date. <br /> <br />3.4 Method of Payment- CDBG Funds. Unless otherwise specified in Exhibit "A", not more frequently <br />than monthly and at least quarterly, Subrecipient may submit to the Agreement Officer an invoice, in a form <br />acceptable to the City, setting forth the amounts actually expended by Subrecipient for the project; provided that <br />said expenses are included in the budget (Exhibit "B") and performance standards have been met. Said invoice <br />shall, at a minimum, set forth each budget category for which reimbursement is sought, a description of the <br />expense, the total budgeted amount for the category, the amount requested to be reimbursed for each budget <br />category, and the total amount expended for each budget category to date. Said invoice shall be accompanied with <br />such additional supporting information as requested by the City, including, but not limited to, paid receipts for each <br />expense. To the extent the CDBG funds actually have been received from HUD, the City shall pay Subrecipient for <br />all expenses stated on the invoice that are approved by City pursuant to this Agreement no later than the thirtieth <br />day after the invoice is received. <br /> <br />309