§ 38.085 LEGAL CLAUSES FOR CONTRACTS OR PURCHASE ORDERS AND THEIR ADMINISTRATION.
   (A)   Generally. Regulations or policies may be promulgated requiring the inclusion in city contracts (or purchase orders, where deemed necessary by the city) of clauses providing for time of performance, or other legal provisions, as appropriate.
   (B)   Additional clauses. In addition to the requirement to contain a non-appropriation clause as set forth in § 38.086 of this chapter and clauses pertaining to ethics and conflicts of interest as set forth in Chapter 39, the city shall address the following issues in all contracts or purchase orders and prepare clauses, as appropriate, pertinent to the underlying transactions:
      (1)   Liquidated damages;
      (2)   Specified excuses for delay or non-performance;
      (3)   Termination of the contract or purchase order for default; and
      (4)   Termination of the contract or purchase order, in whole or in part, for the convenience of the city.
   (C)   Modification of required clauses. The Director of Purchasing or the Corporation Counsel may vary clauses promulgated by the Department of Purchases under divisions (A) and (B) of this section for inclusion in any particular contract or purchase order; provided that, any variations are supported by a written determination that states the circumstances justifying the variances, and provided that notice of any such material variation be stated in the invitation for bids or requests for proposals. However, the Director of Purchasing does not have the discretion to vary the specifically enumerated legal requirements of the code of ordinances.
   (D)   Section 3 contract clauses. Any contract subject to the city’s Section 3 Policy shall include all of the clauses contained in divisions (D)(1) through (7) herein. This division (D) shall apply regardless of whether the contractor or subcontractor (as defined in the Section 3 Policy) is a Section 3 business.
      (1)   The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. § 1701u (“Section 3”). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.
      (2)   The parties to this contract agree to comply with HUD’s regulations in 24 C.F.R. part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations.
      (3)   The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers’ representative of the contractor’s commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.
      (4)   The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 C.F.R. part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 C.F.R. part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 C.F.R. part 135.
      (5)   The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 C.F.R. part 135 require employment opportunities to be directed, were not filled to circumvent the contractor’s obligations under 24 C.F.R. part 135.
      (6)   Noncompliance with HUD’s regulations in 24 C.F.R. part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts.
      (7)   With respect to work performed in connection with Section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. § 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned economic enterprises. Parties to this contract that are subject to the provisions of Section 3 and section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b).
(Ord. passed 6-20-2005; Ord. passed 2-21-2012)