Loading...
HomeMy WebLinkAboutContract 61346CSC No. 61346 STATE OF TEXAS § COUNTY OF TARRANT § AMERICAN RESCUE PLAN ACT AGREEMENT BETWEEN THE CITY OF FORT WORTH, TEXAS AND TEXAS WESLEYAN UNIVERSITY This contract ("Contract") is made and entered into by and between the City of Fort Worth (hereafter "City") and Texas Wesleyan University (hereafter "TWU"), a private university. City and TWU may be referred to individually as a "Party" and jointly as "the Parties". The Parties state as follows: WHEREAS, City received $173,745,090.00 for allowable expenses from the United States Department of the Treasury through the Coronavirus State and Local Fiscal Recovery Funds ("SLFRF") Program, a part of the American Rescue Plan Act ("ARPA"), to state, local, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency; WHEREAS, the SLFRF Program provides governments across the country with resources needed to fight the pandemic and support families and businesses struggling with its public health and economic impacts, to maintain vital public services, even amid declines in revenue resulting from the crisis and to build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity; WHEREAS, ARPA funds may be used to promote healthy environments that have been negatively impacted by COVID-19; WHEREAS, "government services" generally includes any service that is traditionally provided by the City and broadly include pay -go spending for building of new infrastructure as part of the general provision of government services under the Social Security Action, Title VI, Section 602(c)(1)(C) or 603(c)(1)(C); WHEREAS, the City set out a broad list of project categories for use of ARPA funds in M&C 21-0445 under which the project described herein qualifies; and WHEREAS, City residents and the City Council have determined that the relocation of public utilities in conjunction with the TWU new athletic stadium development are a government service that is necessary to further the greater revitalization efforts in disproportionately impacted communities, such as the Poly Heights Urban Village area. NOW, THEREFORE, in consideration of the mutual covenants and obligations and responsibilities contained herein, including all exhibits and attachments, and subject to the terms and conditions hereinafter stated, the Parties understand and agree as follows: 1. INCORPORATION OF RECITALS. OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 1 of 41 City and TWU hereby agree that the recitals set forth above are true and correct and form the basis upon which the Parties have entered into this Contract. 2. DEFINITIONS. In addition to terms defined in the body of this Contract, the terms set forth below shall have the definitions ascribed to them as follows: ARPA means American Rescue Plan Act. ARPA Funds means the ARPA funds granted by City to TWU under the terms of this Contract. ARPA Regulations means regulations found at 31 CFR Part 35 and Social Security Act, Title VI-Coronavirus Relief, Fiscal Recovery, and Critical Capital Projects Funds. Business Diversity Enterprise Ordinance or BDE means the City's Business Diversity Ordinance, Ordinance No. 25165-10-2021, as may be amended from time to time. Complete Documentation means the following documentation as applicable: 1. Attachments I and II of Exhibit "F" — Reimbursement Forms, with supporting documentation as follows: a. Proof of expense: invoices, service contracts, expenses based on work completed and costs actually incurred or other documentation showing the nature of the cost and that payment was due and paid by TWU. b. Proof of payment: cancelled checks, bank statements, or wire transfers necessary to demonstrate that amounts due and paid by TWU. 2. Other documentation: (i) final lien releases signed by the general contractor, subrecipients, or subcontractors, if applicable; (ii) copies of all City permits and City - issued "pass" inspections for such work; (iii) documentation to show compliance with BDE or DBE bidding process for procurement or Contract activities, as applicable; (iv) proof of contractor, subrecipients, subcontractor and vendor eligibility as described in Section 6.6; and (v) any other documents or records reasonably necessary to verify costs spent for the Project. Completion means the substantial completion of the Required Improvements as evidenced by a Transportation and Public Works or Water Department inspection and any other applicable final inspection approvals from the City showing that the Required Improvements have met City requirements. Completion Deadline means June 30, 2024. DBE means disadvantaged business enterprise in accordance with 49 CFR Part 26. Director means the Director of the Economic Development Department or their designee. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 2 of 41 Effective Date means the date of the last of the Parties to sign as indicated on the signature page. Reimbursement Request means all reports and other documentation described in Section 9. Improvements or the Project means all the right of way infrastructure improvements performed by Conatser Construction, L.P. under the Community Facilities Agreement with City and TWU, as described in the attached Exhibit "A" - Project Summary and Scope of Work. 3. TERM. 3.1 Term of Contract. The term of this Contract commences on the Effective Date and shall end at the earlier of (i) the Completion Deadline or (ii) following completion of the Project and submission of items required by this Contract and all provisions relating to completion of the Required Improvements. 3.2 Extension of Contract. This provisions in this Contract relating to completion of the Improvements may be extended for 1 one-year extensions upon TWU's submitting a request for an extension in writing at least 60 days prior to the end of the initial period described in Section 3.1, or the end of the first one-year extension. The one-year extension request shall include the reasons for the extension, TWU's anticipated budget, construction schedule and goals for the additional time. It is specifically understood that it is within City's reasonable discretion whether to approve or deny TWU's request for a one-year extension to complete the Improvements. Any such extension shall be in the form of an amendment to this Contract. It shall be an event of default under this contract if the Improvements are not completed within the time period required herein, including any extensions. 4. DUTIES AND RESPONSIBILITIES OF CITY. 4.1. Provide ARPA Funds. City shall provide up to $200,000.00 of ARPA Funds to TWU under the terms and conditions of this Contract. 4.2 City Monitor. City will monitor the activities and performance of TWU and any of their contractors, subrecipients, subcontractors or vendors throughout the Performance Period, but no less than annually. Monitoring by City will include monitoring whether TWU is complying with the ARPA Regulations and the City Requirements. 5. DUTIES AND RESPONSIBILITIES OFTWU. 5.1 Construction of Required Improvements. TWU will complete or caused to be completed the Improvements as described in Exhibit A in accordance with the Plans, the schedule set forth in Exhibit "C" — Construction Schedule, with the Project schedule represented by lines 5 through 15 and the terms and conditions of this Contract. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 3 of 41 5.1.1 Written Cost Estimates, Construction Contracts and Construction Documents. TWU has submitted to City any written cost estimates, construction contracts and construction documents (collectively, the "Construction Documents") which will be prepared by TWU to show the work to be undertaken for the Improvements in sufficient detail that City can perform all required inspections. City has reviewed and approved the Construction Documents, reflected in Exhibit A. 5.2 Use of ARPA Funds. 5.2.1. Compliance with ARPA Regulations and Contract. TWU shall be reimbursed for eligible Project costs with ARPA Funds only if City determines in its sole discretion that: 5.2.1.1 Costs are eligible expenditures in accordance with ARPA Regulations. 5.2.1.2 Costs are in compliance with this Contract and are reasonable and consistent with industry norms. 5.2.1.3 Complete Documentation, as applicable, is submitted to City by TWU. 5.2.2 Budget. TWU agrees that ARPA Funds will be paid on a reimbursement basis in accordance with Exhibit `B" — Budget and Exhibit C. TWU may increase or decrease line item amounts in the Budget with the Director's prior written approval, which approval shall be in the Director's sole discretion. Any such increase or decrease in line items in the Budget shall comply with Section 5.2.1, Exhibit A, and shall not increase the total amount of ARPA Funds. 5.2.3 Change in Proiect Budget. 5.2.3.1 TWU will notify City promptly of any additional funds it or any of its subcontractors or subrecipients receive for the development or operation of the Project, and City reserves the right to amend this Contract in such instances to ensure compliance with HUD regulations governing cost allocation. 5.2.3.2 TWU agrees to utilize the ARPA Funds to supplement rather than supplant funds otherwise available for the Project. 5.3 Pavment of ARPA Funds to TWU and Repayment. 5.3.1 ARPA Funds will be reimbursed to TWU within thirty (30) days of the City's approval of Reimbursement Requests including submission of Complete Documentation to City in compliance with Section 9. It is expressly agreed by the Parties that any ARPA Funds not reimbursed to TWU shall remain with City. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 4 of 41 5.3.2 The ARPA Funds are not subject to repayment so long as TWU has complied with all City requirements, state and federal laws, all federal regulations, including ARPA Regulations, all local ordinances, and this Contract. 5.4 Identifv Proiect Expenses Paid with ARPA Funds. TWU agrees to keep accounts and records in such a manner that City may readily identify and account for Project expenses reimbursed with ARPA Funds. These records shall be made available to City for audit purposes and shall be retained as required hereunder. 5.5 Acknowledgement of Citv Pavment of ARPA Funds. Within 90 days of Completion, TWU shall sign an acknowledgement that City has paid all ARPA Funds due under this Contract, or shall deliver a document executed by an officer of TWU identifying all or any portion of the ARPA Funds that City has not been paid to TWU. Once City has met all of its obligations for payment of ARPA Funds hereunder, an officer of TWU shall sign an acknowledgement of same. 5.6 Proiect Subcontracts. 5.6.1 TWU acknowledges and agrees that it, nor any of its subcontractors or subrecipients, shall enter into a subcontract with another agency, contractor, or vendor for any part of the Project that will be paid with ARPA Funds without City's prior written consent. City approved Conatser and any of its subcontractors as part of the CFA process. 5.7 ARPA Regulations and Citv Requirements. TWU shall comply with the ARPA Regulations and City Requirements. 6. CONSTRUCTION. 6.1. Construction Schedule. TWU shall construct or cause to be constructed the Required Improvements in accordance with the schedule set forth in Exhibit C. The City has provided a Notice to Proceed for this Project. TWU's failure to meet the Construction Schedule (as it may be modified in accordance with Section 14.19) or the Completion Deadline shall be an event of default under this contract. Subject to Section 14.19, TWU may not change the Construction Schedule without the Director's prior written approval, which approval shall be in the Director's reasonable discretion. 6.1.1 Construction Inspections. The construction of the Required Improvements must pass any applicable City final inspection approval at the completion of construction of the Required Improvements. 6.2 Applicable Laws, Building Codes and Ordinances. The Plans for the Required Improvements shall (i) conform to all applicable federal, state, City and local laws, ordinances, codes, rules and regulations, including the ARPA Regulations, and (ii) meet all City building codes. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 5 of 41 6.3 Approval of Plans by City Not Release of Responsibilitv. Approval of the Plans by City shall not constitute or be deemed (i) to be a release of the responsibility or liability of TWU or any of its subrecipients, architects, contractors, subrecipients, or subcontractors, or their respective officers, agents, employees and lower tier subcontractors, for the accuracy or the competency of the Plans, including, but not limited to, any related investigations, surveys, designs, working drawings and specifications or other related documents; or (ii) an assumption of any responsibility or liability by City for any negligent act, error or omission in the conduct or preparation of any investigation, surveys, designs, working drawings and specifications or other related documents by TWU or any of their architects, contractors, subrecipients, or subcontractors, and their respective officers, agents, employees and lower tier subcontractors. 6.4 Contractor, Vendor, Subrecipient, and Subcontractor Requirements. TWU shall to use commercially reasonable efforts to ensure that all subcontractors or subrecipients of the ARPA funds utilized for the construction of the Required Improvements are appropriately licensed and such licenses are maintained throughout the construction of the Required Improvements. TWU shall require all subrecipients, subcontractors, or vendors in the construction of the Required Improvements are not debarred or suspended from performing the contractor's, subcontractor's or vendor's work by the City, the State of Texas, or the Federal government. TWU understands and acknowledges that 24 CFR Part 85.35 forbids TWU from hiring or continuing to employ any contractor, subcontractor or vendor that is listed on the Federal Excluded Parties List System for Award Management, www.sam.i!ov ("SAM"). TWU shall confirm by search of SAM that all contractors, subrecipients, subcontractors or vendors are not listed as being debarred, both prior to hiring and prior to submitting a Reimbursement Request which includes invoices from any such contractor, subrecipients, subcontractor or vendor. Failure to submit such proof(s) of search shall be an event of default. In the event that City determines that any contractor, subrecipient, subcontractor or vendor has been debarred, suspended, or is not properly licensed, TWU shall immediately cause such contractor, subrecipients, subcontractor or vendor to stop work on the Required Improvements and shall not be reimbursed for any work performed by such contractor, subrecipient, subcontractor or vendor. However, this Section should not be construed to be an assumption of any responsibility or liability by City for the determination of the legitimacy, quality, ability, or good standing of any contractor, subrecipient, subcontractor or vendor. TWU acknowledges that the provisions of this Section pertaining to SAM shall survive the termination of this Contract and be applicable for the length of the Performance Period. 6.5 Furnish Complete Set of "As Built" Plans. TWU acknowledges and agrees to furnish City a complete set of "as built" plans for the Required Improvements at completion of construction after all final approvals have been obtained. 7. ADDITIONAL REQUIREMENTS. TWU understands and agrees to comply with all requirements of the ARPA Program as stated in the ARPA Regulations, including but not limited to the following: 7.1 TWU Procurement Standards. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 6 of 41 TWU shall comply, if applicable, and shall require all recipients of the ARPA Funds to comply with all applicable federal, state and local laws, regulations, and ordinances for making procurements under this Contract. In addition to the conflict of interest provisions in Section 14.13.3, TWU shall establish or follow its written procurement procedures to ensure that materials and services are obtained in a cost-effective manner and that provides for full and open competition. When procuring materials and services for this Contract, TWU shall comply at a minimum with the procurement standards in 2 CFR Part 200.317 through Part 200.326. All relevant contractors shall be pre -qualified by CFW, which pre -qualification shall be verified in conjunction with contractor procurement by TWU. 7.1.1 Contracts in excess of $10,000.00 made by TWU or any subrecipient using ARPA Funds must address termination for cause and convenience including the manner by which such termination shall be effected and the basis for settlement of the terminated contract, if any, as required by Appendix II (B), 2 CFR Part 200. 7.1.2 TWU shall not make any contract with parties listed on the government wide System for Award Management, www.sam.gov ("SAM"). TWU shall require by search of SAM that all contractors paid with ARPA Funds are not listed by SAM as being debarred, both prior to hiring and prior to submitting a Reimbursement Request which includes invoices from any such contractor. Failure to submit such proofs of search shall be an event of default. 7.2 Cost Principles/Cost Reasonableness. The eligibility of costs incurred for performance rendered shall be determined in accordance 2 CFR Part 200.402 through 2 CFR Part 200.405, as applicable, regarding cost reasonableness and allocability. 7.3 Financial Management Standards. TWU agrees to comply with 2 CFR Part 200, as applicable. TWU also agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary supporting and back-up documentation for all costs incurred in accordance with 2 CFR Part 200.302 and Part 200.303. 7.4 Uniform Administrative Requirements, Cost Principles, and Audit Requirements. TWU shall comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in 2 CFR Part 200, as applicable, or any reasonably equivalent procedures and requirements that City may require. 7.5 Compliance with FFATA and Whistleblower Protections. TWU shall provide City with all necessary information for City to comply with the requirements of 2 CFR 300(b), including provisions of the Federal Funding Accountability and Transparency Act ("FFATA") governing requirements on executive compensation and provisions governing whistleblower protections contained in 10 U.S.C. 2409, 41 U.S.C. 4712, 10 U.S.C. 2324, 41 U.S.C. 4304 and 41 U.S.C. 4310. 7.5.1 TWU shall provide City its DUNS number prior to the payment of any ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 7 of 41 Reimbursement Requests. 7.6 Internal Controls. In compliance with the requirements of 2 CFR Part 200.303, TWU shall: 7.6.1 Establish and maintain effective internal controls that provide reasonable assurance that TWU is ensuring the work that is being reimbursed using ARPA Funds is being performed in compliance with federal statutes, regulations, and the terms and conditions of this Contract. These internal controls shall comply with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"); 7.6.2 Comply with federal statutes, regulations, and the terms and conditions of this Contract; 7.6.3 Evaluate and monitor any and all subcontractors' or subrecipients' of the ARPA Funds compliance with statutes, regulations and the terms and conditions of this Contract; 7.6.4 Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings; and 7.6.5 Take reasonable measures to safeguard protected personally identifiable information and other information that City designates as sensitive or TWU considers sensitive consistent with applicable federal, state, local and tribal laws regarding privacy and obligations of confidentiality. 7.7 Covvright and Patent Rights. No reports, maps, or other documents produced in whole or in part under this Contract shall be the subject of an application for copyright by or on behalf of TWU or any subcontractor or subrecipient of the ARPA Funds. City shall possess all rights to invention or discovery, as well as rights in data which may arise as a result of TWU or any subcontractor's or subrecipient's performance under this Contract. 7.8 Terms Applicable to Contractors, Subcontractors, Subrecipients and Vendors. TWU understands and agrees that all terms of this Contract, whether regulatory or otherwise, shall apply to each contract, loan, or other documents related to the transfer, payment, or loan of the ARPA Funds, any and all contractors, subcontractors, subrecipients, and vendors of TWU which are in any way paid with ARPA Funds or who perform any work in connection with the Project. TWU shall monitor the services and work performed by its contractors, subrecipients, subcontractors and vendors on a regular basis for compliance with the obligations regarding the performance requirements, City requirements listed herein, and the ARPA Regulations (collectively the "Obligations"). TWU shall be responsible and obligated to cure all violations of the Obligations committed by its contractors, subcontractors, subrecipients, or vendors. City maintains the right to insist on TWU's full compliance with the terms of the Obligations and TWU ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 8 of 41 shall be responsible for such compliance regardless of whether actions to fulfill the Obligations are taken by TWU or by TWU's contractors, subcontractors, subrecipients, or vendors. TWU acknowledges that the provisions of this Section shall survive the earlier termination or expiration of this Contract and be applicable for the length of the Performance Period. 7.9 Pavment and Performance Bonds. TWU shall furnish City with payment and performance bonds in the total amount of the construction cost in accordance with the requirement of 2 CFR Part 200.325. At City's discretion other forms of assurance, may be acceptable so long as such assurance meets the requirements of the ARPA Regulations. 7.10 Conflict of Interest Disclosure. In accordance with the requirements of Section 14.13.2.1 and 14.13.4, TWU shall establish conflict of interest policies for federal awards. TWU shall disclose to City in writing any potential conflict of interest. 8. RECORD KEEPING. REPORTING AND DOCUMENTATION REOUIREMENTS. AUDIT. 8.1 Record Keeping. TWU shall maintain a record -keeping system as part of its performance of this Contract and shall promptly provide City with copies of any document City deems necessary for the effective fulfillment of City's monitoring and evaluation responsibilities. Specifically, TWU will keep or cause to be kept an accurate record of all actions taken and all funds spent, with supporting and back-up documentation. TWU will maintain all records and documentation related to this Contract for 5 years after the termination or expiration of the Contract, whichever is later ("Access Period"). If any claim, litigation, or audit is initiated related to this Contract or the Project before the expiration of the 5-year period, the records must be retained until all such claims, litigation or audits have been resolved. 8.2 Access to Records. City will have full access to, and the right to examine, audit, excerpt and/or transcribe any of TWU's records pertaining to all matters covered by this Contract throughout the Access Period. Such access shall be during regular business hours and upon at least 48 hours' prior notice. 8.3 Reports. TWU shall submit to City or cause to be submitted to City, all reports and documentation described in this Contract in such form as City may prescribe, which may also include a final performance and/or final financial report if required by City at the termination of this Contract in such form and within such times as City may prescribe. Failure to submit or to cause submission of any report or documentation to City required by this Contract shall be an event of default and City may exercise all of it remedies for default under this Contract. City shall not exercise its rights hereunder for default until its gives TWU 45 days' notice of such failure and TWU has failed to cure such default. 8.4 Additional Information. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 9 of 41 TWU shall provide City with additional information as may be required to substantiate ARPA activities and/or expenditure eligibility. 8.5 Change in Reporting Requirements and Forms. City retains the right to change reporting requirements and forms at its reasonable discretion. City will notify TWU in writing at least 30 days prior to the effective date of such change, and the Parties shall execute an amendment to the Contract reflecting such change, if necessary. 8.6 City Reserves the Right to Audit. City reserves the right and TWU agrees for City to perform an audit of TWU's Project operations and finances at any time during the term of the Access Period, if City determines that such audit is necessary for City's compliance with the ARPA Regulations or other City policies. TWU further agrees to allow access to all pertinent materials as described herein. If such audit reveals a questioned practice or expenditure, TWU shall require that such questions must be resolved within 15 Business Days after notice to TWU of such questioned practice or expenditure. If questions are not resolved within this period, City reserves the right to withhold further funding under this Contract. IF AS A RESULT OF ANY AUDIT IT IS DETERMINED THAT TWU OR ANY SUBCONTRACTOR, SUBRECIPIENT, OR VENDOR OF TWU HAS FALSIFIED ANY DOCUMENTATION OR MISUSED, MISAPPLIED OR MISAPPROPRIATED ARPA FUNDS OR SPENT ARPA FUNDS ON ANY INELIGIBLE ACTIVITIES, TWU AGREES TO REIMBURSE CITY THE AMOUNT OF SUCH MONIES. 8.7 Entities that Expend $750,000 or more in Federal Funds Per Year. All non-federal entities that expend $750,000 or more in federal funds within 1 year, regardless of the source of the federal award, must submit to City an annual audit prepared in accordance with specific reference to 2 CFR Part 200.501 through Part 200.521. If applicable, the audit shall cover TWU's fiscal years during which this Contract is in force. The audit must be prepared by an independent certified public accountant, be completed within 6 months following the end of the period being audited and be submitted to City within 30 days of its completion. TWU's audit certification is attached hereto as EXHIBIT "D" — "Audit Certification Form" and "Audit Requirements". The Audit Certification Form must be submitted to City prior to or with the first Reimbursement Request. Entities that expend less than $750,000 a year in federal funds are exempt from federal audit requirements for that year, but records must be available for review or audit by appropriate officials of the federal agency, City, and General Accounting Office. 9. REIMBURSEMENT REQUIREMENTS. TWU shall provide City with Complete Documentation and the following reports as shown in Exhibit F with each Reimbursement Request: 9.1 Attachment I — Invoice. This report shall contain the amount requested for reimbursement in the submitted request, and the cumulative reimbursement requested to date (inclusive of the current request). This report must be signed by an authorized signatory of TWU. By signing Attachment I, TWU is certifying ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 10 of 41 that the costs are valid, eligible, and consistent with the terms and conditions of this Contract, and the data contained in the report is true and correct. 9.2 Attachment II — Expenditure Worksheet. This report shall itemize each expense requested for reimbursement by TWU. In order for this report to be complete the following must be submitted: 9.2.1 Invoices for each expense with an explanation as to how the expense pertains to the Project, if necessary; 9.2.2 Conditional and unconditional lien releases, as appropriate, from I" tier subcontractors; and 9.2.3 Proof that each expense was paid by TWU, which proof can be satisfied by cancelled checks, wire transfer documentation, paid receipts or other appropriate banking documentation. 9.3 Deadline for Submitting Reimbursement Requests. All Reimbursement Requests along with Complete Documentation shall be submitted by TWU to City within 60 days from each of the deadlines as shown in Exhibit C. 9.3.1 CITY SHALL HAVE NO OBLIGATION TO PAY ANY REIMBURSEMENT REQUEST THAT IS NOT RECEIVED WITHIN 60 CALENDAR DAYS OF THE DEADLINES SHOWN IN EXHIBIT C. In addition, TWU's failure to timely submit Reimbursement Requests and Complete Documentation along with any required reports shall be an event of default. 9.3.2 CITY SHALL HAVE NO OBLIGATION TO MAKE PAYMENT ON ANY REIMBURSEMENT REQUEST THAT IS NOT RECEIVED WITHIN 30 CALENDAR DAYS OF THE COMPLETION DEADLINE. 9.4 Final Pavment. Final payment will not be made until City has verified that the Required Improvements are complete at the time of such Reimbursement Request and that a final inspection is completed by a Transportation and Public Works or Water Department inspector and final closeout documents ("green sheet") is issued. 9.5 Withholding Pavment. 9.5.1 TWU acknowledges that CITY SHALL WITHHOLD PAYMENT ON ANY REIMBURSEMENT REQUEST THAT DOES NOT INCLUDE THE REQUIRED COMPLETE DOCUMENTATION. City shall notify TWU when it is withholding payment due to lack of required complete documentation within 10 Business Days of making such determination. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 11 of 41 9.5.2 FINAL REIMBURSEMENT SHALL NOT BE MADE UNTIL ALL LIENS ARE RELEASED TO CITY'S REASONABLE SATISFACTION. 9.6 Timing of Pavment. Provided that TWU submits Complete Documentation in conformance with the requirements of this Contract and the ARPA Regulations, City will reimburse TWU for eligible expenses within 30 calendar days. 10. Intentionally Omitted. 11. DEFAULT AND TERMINATION. 11.1 Failure to Begin or Complete the Improvements. 11.1.1 Failure to begin construction on the Improvements within 3 months of the execution of this Contract shall result in the Contract automatically terminating without further warning or opportunity to cure, and with no penalty or liability to City. 11.1.2 TWU acknowledges that if City determines that the Improvements were not completed by the Completion Deadline (as may be modified in accordance with Section 14.19) or have failed to pass any of the inspections described in Section 6.1.1 (or to promptly correct any noted deficiency and subsequently pass such inspection), within 45 calendar days following written notice by City (or such other longer notice period as may be specified herein), or if TWU has diligently and continuously attempted to cure following receipt of such written notice but reasonably required more than 45 calendar days to cure, as determined by both Parties mutually and in good faith, City shall have the right to terminate this Contract with no penalty or liability to City, with such termination to be effective immediately upon written notice. City shall also be entitled to demand repayment of the ARPA Funds from TWU to be paid within 30 days' after receiving such demand and enforce any of the provisions for default. 11.2 Failure to Submit Complete Documentation During Construction. 11.2.1 TWU acknowledges that if TWU fails to submit all applicable Complete Documentation during construction of the Required Improvements in accordance with Exhibit C, or if any report or documentation submitted as part of Complete Documentation is not in compliance with this Contract or the ARPA Regulations as determined by City, City will notify TWU in writing and TWU will have 15 calendar days from the date of the written notice to submit or resubmit any such report or documentation. TWU acknowledges that if TWU fails to submit or resubmit any such report or documentation within such time, City shall have the right to withhold payments. If such failure continues for an additional 30 days (a total of 45 days) City shall have the right to terminate this Contract effective immediately upon written notice of such intent with no penalty or liability to City and may demand repayment of all ARPA funds disbursed to be repaid to City by TWU within 30 days of receipt of such notice. TWU acknowledges that notwithstanding anything to the contrary herein, City will not be required to pay any ARPA Funds to TWU during the period that any such report or documentation is not in compliance with this Contract or the ARPA Regulations. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 12 of 41 11.2.2 If any of TWU's Reimbursement Requests are incomplete or otherwise not in compliance with this Contract or ARPA Regulations as determined by City, TWU shall be in default of this Contract. City will notify TWU in writing of such default and the TWU will have 15 calendar days from the date of the written notice to resubmit any such Reimbursement Request to cure the default. If the TWU fails to cure the default within such time, TWU shall forfeit any payments otherwise due under such Reimbursement Request. If such failure to resubmit such Reimbursement Request continues for an additional 30 days (a total of 45 days), the City shall have the right to terminate this Contract effective immediately upon written notice of such intent with no penalty or liability to City and may demand repayment of all ARPA funds disbursed to be repaid to City by TWU within 30 days of receipt of such notice. Notwithstanding anything to the contrary herein, City will not be required to pay any ARPA Funds to TWU during the period that any such Reimbursement Request is not in compliance with this Contract or the ARPA Regulations. 11.2.3 TWU acknowledges that in the event of more than 3 instances of uncured default under Sections 11.2.1 or 11.2.2 which have a material adverse impact on the Project, City reserves the right at its sole option to terminate this Contract effective immediately upon written notice of such intent with no penalty or liability to City. 11.2.4 TWU acknowledges that notwithstanding anything to the contrary herein, City will not be required to pay any ARPA Funds to TWU during the period that any Reimbursement Requests, reports or documentation are past due or are not in compliance with this Contract or the ARPA Regulations, or during any period during which TWU is in default of this Contract. 11.2.5 TWU acknowledges that in the event of termination under this Section 11.2, all ARPA Funds awarded but unpaid to TWU pursuant to this Contract shall be immediately forfeited and TWU shall have no further right to such funds. TWU acknowledges and agrees that any ARPA Funds already paid to TWU must be repaid to City by TWU within 30 days of receipt of the notice of termination under this Section. Failure to repay such ARPA Funds will result in City exercising all legal remedies available to City under or pursuant to this Contract. For clarification, the defaults and related remedies set out in this Section 11.2 are not intended to arise from mathematical errors or other minor defects in a Reimbursement Request. 11.3 Failure to Maintain or Submit Required Reports and Documentation During Performance Period. If TWU fails to maintain all records and documentation as required in Section 9, or fails to submit any report or documentation required by this Contract after the Improvements are completed, or if the maintained or submitted report or documentation is not in compliance with this Contract or the ARPA Regulations as determined by City, City will notify TWU in writing and TWU will have 45 calendar days from the date of the written notice to obtain or recreate the missing records and documentation, or submit or resubmit any such report or documentation to City. If TWU fails to maintain the required reports or documentation, or submit or resubmit any such report or documentation within such time, City shall have the right to terminate this Contract effective immediately upon written notice of such intent with no penalty or liability to City. In the event of termination under this Section 11.3, any ARPA Funds paid to TWU must be repaid to ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 13 of 41 City within 30 days of termination under this Section, or at City's election TWU must repay City in accordance with the provisions of Section 5.3.2. Failure to repay will result in City exercising all legal remedies available to City under or pursuant to this Contract. 11.4 In General. 11.4.1 TWU acknowledges that subject to Sections 11.1, 11.2 and 11.3, and unless specifically provided otherwise in this Contract, TWU shall be in default if TWU breaches any term or condition of this Contract. In the event that such a breach remains uncured after 45 calendar days following written notice by City (or such other longer notice period as may be specified herein), or if TWU has diligently and continuously attempted to cure following receipt of such written notice but reasonably required more than 45 calendar days to cure, as determined by both Parties mutually and in good faith, City shall have the right to elect, in City's sole discretion, to (i) extend TWU's, time to cure, (ii) terminate this Contract effective immediately upon written notice of such intent to TWU, or (iii) pursue any other legal remedies available to City. 11.4.2 TWU acknowledges that City's remedies include but are not limited to: 11.4.2.1 Direct TWU, in City's sole discretion, to prepare and follow a schedule of actions for carrying out the affected activities, consisting of schedules, timetables and milestones necessary to implement the affected activities. 11.4.2.2 Direct TWU, in City's sole discretion to establish and follow a management plan that assigns responsibilities for carrying out the remedial activities. 11.4.2.3 Cancel or revise activities likely to be affected by the performance deficiency before expending ARPA Funds for the activities. 11.4.2.4 Reprogram ARPA Funds that have not yet been expended from affected activities to other eligible activities or withhold ARPA Funds. 11.4.2.5 Direct TWU, in City's sole discretion to reimburse City in the amount of ARPA Funds. 11.4.2.6 Suspend reimbursement of ARPA Funds for affected activities. 11.4.2.7 Any other appropriate action including but not limited to any remedial action legally available such as declaratory judgment, specific performance, damages, temporary or permanent injunctions, termination of this Contract, and any other available remedies. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 14 of 41 11.4.3 TWU acknowledges that in the event of termination under this Section 11.4, all ARPA Funds awarded but unpaid shall be immediately rescinded and TWU shall have no further right to such funds and any ARPA Funds already paid to TWU must be repaid by TWU to City, within 30 days of termination. Failure to repay such ARPA Funds will result in City exercising all legal remedies available to City under or pursuant to this Contract. 11.5 No Funds Disbursed While in Breach. TWU acknowledges and agrees that no ARPA Funds will be paid to TWU until all defaults are cured to City's satisfaction. 11.6 No Compensation After Date of Termination. TWU acknowledges that in the event of termination, TWU shall not receive any ARPA Funds in compensation for work undertaken after the date of termination. 11.7 Rights of Citv Not Affected. TWU acknowledges that termination shall not affect or terminate any of the existing rights of City against TWU, or which may thereafter accrue because of such default, and this section shall be in addition to any and all other rights and remedies available to City under the law and various loan documents including, but not limited to, compelling TWU to complete the Improvements in accordance with the terms of the Contract. Such termination does not terminate any applicable provisions of this Contract that have been noted as surviving the term or termination of this Contract. No delay or omission by City in exercising any right or remedy available to it under this Contract shall impair any such right or remedy or constitute a waiver or acquiescence in any TWU default. 11.8 Waiver of Breach Not Waiver of Subsequent Breach. The waiver of a breach of any term, covenant, or condition of this Contract shall not operate as a waiver of any subsequent breach of the same or any other term, covenant or condition hereof. 11.9 Civil, Criminal and Administrative Penalties. TWU acknowledges that failure to perform all the Contract terms or terms in the various loan documents may result in civil, criminal or administrative penalties, including, but not limited to those set out in this Contract. 11.10 Termination for Cause. 11.10.1 TWU acknowledges that City may terminate this Contract in the event of default under this Contract, inability or failure to perform, subject to notice, grace and cure periods. In the event City terminates this Contract for cause, all ARPA Funds awarded but unpaid to TWU pursuant to this Contract shall be immediately rescinded and TWU shall have no further right to such funds and any ARPA Funds already paid to TWU must be repaid to City by TWU within 30 calendar days of termination. Failure to repay such ARPA Funds will result in City exercising all legal remedies available to City under or pursuant to this Contract. TWU acknowledges and agrees that IF CITY TERMINATES THIS CONTRACT FOR CAUSE, NEITHER TWU NOR ANY AFFILIATES OF TWU SHALL BE CONSIDERED FOR ANY OTHER CITY ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 15 of 41 CONTRACT FOR ARPA FUNDS FOR A MINIMUM OF 5 YEARS FROM THE DATE OF TERMINATION. 11.10.2 TWU may terminate this Contract if City does not provide the ARPA Funds substantially in accordance with this Contract. In such event, the termination of the Contract shall have the effect of returning the Parties to their respective circumstances as existed prior to the execution of this Contract, and no terms or obligations shall survive the date of termination. 11.11 Termination for Convenience. In terminating in accordance with 2 CFR 200, Appendix II, this Contract may be terminated in whole or in part only as follows: 11.11.1 By City with the consent of TWU in which case the Parties shall agree upon the termination conditions, including the effective date and in the case of partial termination, the portion to be terminated; or 11.11.2 By TWU with written notification to City setting forth the reasons for such termination, the effective date, and in the case of partial termination, the portion to be terminated. In the case of a partial termination, City may terminate the Contract in its entirety if City determines in its sole discretion that the remaining portion of the Contract to be performed or ARPA Funds to be spent will not accomplish the purposes for which this Contract was made. 11.12 Dissolution of TWU Terminates Contract. TWU acknowledges that in the event that TWU is dissolved or ceases to exist, this Contract shall terminate, at the sole option of City. In the event of termination under this Section, all ARPA CDBG Funds are subject to repayment as required herein and/or City may exercise all of its remedies under this Contract and the various loan documents. 11.13 Reversion of Assets. TWU acknowledges that in the event this Contract is terminated with or without cause by either party, all tangible personal property owned by TWU or any contractors, subcontractors, subrecipients, or vendors that was acquired or improved with the ARPA Funds included but not limited to plans, drawings, surveys, renderings, construction documents and any other personal property shall belong to City and shall automatically transfer to City or to such assignees as City may designate. 11.14 Intentionally Omitted. 11.15 Non-Auurouriation of Funds. In the event no funds or insufficient funds are appropriated by City in any fiscal period for any payments due hereunder, City will notify TWU of such occurrence and this Agreement will terminate on the last day of the fiscal period for which appropriations were received without penalty or expense to City of any kind whatsoever, except as to the portions of the payments herein agreed upon for which funds have been appropriated. 11.16 Cross Default. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 16 of 41 TWU acknowledges and agrees that in the event that any of its subcontractors, subrecipients, contractors, or vendors defaults on any contract, agreement, or other binding document by failing to comply with the Obligations, subject to any cure periods approved by City, City may terminate this contract without any liability or penalty, and TWU shall have no further right to any ARPA CDBG Funds. Further, City may demand repayment from TWU of any ARPA CDBG Funds already paid to TWU and such repayment must occur within 30 days from the date of the demand. 12. REPAYMENT OF FUNDS. TWU acknowledges that all ARPA Funds are subject to repayment in the event the Project does not meet the requirements as set out in this Contract or in the ARPA Regulations. TWU agrees that if TWU or any contractor, subcontractor, subrecipient, or vendor takes any action that results in City being required to repay all or any portion of the ARPA Funds, TWU agrees it will reimburse City for the full amount of such repayment within thirty days of such notice. 13. MATERIAL OWNERSHIP CHANGE. TWU acknowledges that if TWU materially changes after the date of this Contract, City may, but is not obligated to, terminate this Contract. TWU acknowledges that City has 30 days to make such determination after receipt of notice from TWU, and failure to make such determination in that time period will constitute a waiver. TWU acknowledges that in the event of termination under this Section 13, all ARPA Funds awarded but not yet paid to TWU pursuant to this Contract shall be immediately rescinded and TWU shall have no further right to such funds, and any ARPA Funds already paid to TWU must be repaid to City within 30 days of termination under this Section in accordance with the terms of this Contract. 14. GENERAL PROVISIONS. 14.1 TWU an Independent Contractor. TWU shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of City. TWU shall have exclusive control of, and the exclusive right to control, the details of the work and services performed hereunder, and all persons performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, contractors, subcontractors, subrecipients, vendors, tenants, clients, licensees or invitees. 14.2 Doctrine of Resvondeat Superior. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 17 of 41 TWU acknowledges that the doctrine of respondeat superior shall not apply as between City or TWU, any officers, members, agents, servants, employees, contractors, subrecipients, subcontractors, vendors, tenants, licensees or invitees. TWU agrees that nothing herein shall be construed as the creation of a partnership or joint enterprise between City or TWU. It is further understood that City shall in no way be considered a Co -employer or a Joint employer of TWU or any officers, agents, servants, employees, subrecipients, or subcontractor of TWU. Neither TWU, nor any officers, agents, servants, employees, subrecipients, or subcontractor of TWU shall be entitled to any employment benefits from City. TWU shall be responsible and liable for any and all payment and reporting of taxes on behalf of itself, and any of its officers, agents, servants, employees, subrecipients, or subcontractor. City does not have the legal right to control the details of the tasks performed hereunder by TWU, its officers, members, agents, employees, contractors, subrecipients, subcontractors, vendors, licensees or invitees. 14.3 TWU Property. City shall under no circumstances be responsible for any property belonging to TWU, its officers, members, agents, employees, contractors, subrecipients, subcontractors, vendors, tenants, clients, licensees or invitees that may be lost, stolen or destroyed or in any way damaged and TO THE EXTENT PERMITTED BY APPLICABLE LAW, TWU HEREBY INDEMNIFIES AND HOLDS HARMLESS CITY AND ITS OFFICERS, AGENTS, AND EMPLOYEES FROM ANY AND ALL CLAIMS OR SUITS PERTAINING TO OR CONNECTED WITH SUCH PROPERTY, SAVE AND EXCEPT THOSE ARISING OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE CITY, ITS OFFICERS, AGENTS OR EMPLOYEES. 14.4 Intentionally Omitted. 14.5 Venue. TWU acknowledges that Venue for any action, whether state or federal, real or asserted, at law or in equity, arising out of the execution, performance, attempted performance or non-performance of this Contract shall lie in Tarrant County, Texas. 14.6 Governing Law. TWU acknowledges that this Contract shall be governed by and construed in accordance with the laws of the State of Texas. If any action, whether real or asserted, at law or in equity, arises out of the execution, performance or non-performance of this Contract or on the basis of any provision herein, for any issue not governed by federal law, the choice of law shall be the laws of the State of Texas. 14.7 Severabilitv. The provisions of this Contract are severable, and, if for any reason a clause, sentence, paragraph or other part of this Contract shall be determined to be invalid by a court or Federal or State agency, board or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect other provisions which can be given effect without the invalid provision. However, the Parties agree that provisions relating to the construction and completion of the Improvements and all provisions related to events of default and remedies in the event of a default are essential to this Contract and that the Contract cannot be reformed without all requirements and remedies currently included herein. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 18 of 41 14.8 Written Agreement Entire Agreement. This written instrument and the attachments and exhibits attached hereto, which are incorporated by reference and made a part of this Contract for all purposes, constitute the entire agreement by the Parties concerning the work and services to be performed under this Contract. Any prior or contemporaneous oral or written agreement which purports to vary the terms of this Contract shall be void. Any amendments to the terms of this Contract must be in writing and executed by the Parties. 14.9 Paragraph Headings for Reference Only, No Legal Significance; Number and Gender. The paragraph headings contained herein are for convenience in reference to this Contract and are not intended to define or to limit the scope of any provision of this Contract. When context requires, singular nouns and pronouns include the plural and the masculine gender shall be deemed to include the feminine or neuter and the neuter gender to include the masculine and feminine. The words "include" and "including" whenever used herein shall be deemed to be followed by the words "without limitation". 14.10 Compliance With All Applicable Laws and Regulations. TWU agrees to comply fully with all applicable laws and regulations that are currently in effect or that are hereafter amended during the term of this Contract and throughout the Performance Period. Those laws include, but are not limited to: ➢ 31 CFR Part 35 and Sections 603(c)(1)(A) and 603(c)(1)(C) of Title VI of the Social Security Act Title VI of the Civil Rights Act of 1964 (42 U.S.C. Sections 2000d et seq.) including provisions requiring recipients of federal assistance to ensure meaningful access by person of limited English proficiency ➢ Executive Orders 11063, 11246 as amended by 11375 and 12086 and as supplemented by Department of Labor regulations 41 CFR, Part 60 ➢ The Age Discrimination in Employment Act of 1967 ➢ The Age Discrimination Act of 1975 (42 U.S.C. Sections 6101 et seq.) ➢ The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. Sections 4601 et seq. and 49 CFR Part 24) ("URA") ➢ Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sections 794 et seq.) and 24 CFR Part 8 where applicable ➢ National Environmental Policy Act of 1969, as amended, 42 U.S.C. sections 4321 et seq. ("NEPA") and the related authorities listed in 24 CFR Part 58. ➢ The Clean Air Act, as amended, (42 U.S.C. Sections 1251 et seq.) and the Clean Water Act of 1977, as amended (33 U.S.C. Sections 1251 et seq.) and the related Executive Order 11738 and Environmental Protection Agency Regulations at 40 CFR Part 15. In no event shall any amount of the assistance provided under this Contract be utilized with respect to a facility that has given rise to a conviction under the Clean Air Act or the Clean Water Act. ➢ Immigration Reform and Control Act of 1986 (8 U.S.C. Sections 1101 et seq.) specifically including the provisions requiring employer verifications of legal status of its employees ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 19 of 41 ➢ The Americans with Disabilities Act of 1990 (42 U.S.C. Sections 12101 et seq.), the Architectural Barriers Act of 1968 as amended (42 U.S.C. sections 4151 et seq.) and the Uniform Federal Accessibility Standards, 24 CFR Part 40, Appendix A ➢ Regulations at 24 CFR Part 87 related to lobbying, including the requirement that certifications and disclosures be obtained from all covered persons ➢ Drug Free Workplace Act of 1988 (41 U.S.C. Sections 701 et seq.) and 24 CFR Part 23, Subpart F ➢ Executive Order 12549 and 24 CFR Part 5.105(c) pertaining to restrictions on participation by ineligible, debarred or suspended persons or entities ➢ Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act ➢ Guidelines of the Environmental Protection Agency at 40 CFR Part 247 ➢ For contracts and subgrants for construction or repair, Copeland "Anti -Kickback" Act (18 U.S.C. 874) as supplemented in 29 CFR Part 5 ➢ For construction contracts in excess of $2,000, and in excess of $2,500 for other contracts which involve the employment of mechanics or laborers, Sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327A 300) as supplemented by 29 CFR Part 5 ➢ Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR Part 200 et seq. ➢ Federal Funding Accountability and Transparency Act of 2006, (Pub.L. 109-282, as amended by Section 6205(a) of Pub.L. 110-252 and Section 3 of Pub.L. 113-101) ➢ Federal Whistleblower Regulations, 10 U.S.C. 2409,41 U.S.C. 4712, 10 U.S.C. 2324, 41 U.S.C. 4304 and 41 U.S.C. 4310. 14.11 Intentionally Omitted. 14.12 Prohibition Against Discrimination. 14.12.1 General Statement. TWU, in the execution, performance or attempted performance of this Contract and in operation of services provided on the Property, shall comply with all non-discrimination laws and ordinances. TWU may not discriminate against any person because of race, color, sex, gender, religion, national origin, familial status, disability or perceived disability, sexual orientation, gender identity, gender expression, or transgender, nor will TWU permit its officers, members, agents, employees, vendors, subcontractors or subrecipients, or Project participants to engage in such discrimination. TWU acknowledges that this Contract is made and entered into with reference specifically to the ordinances codified at Chapter 17, Article III, Division 3 — Employment Practices of the City Code, and TWU hereby covenants and agrees that TWU its officers, members, agents, employees, subcontractors, subrecipients, and contractors, have fully complied with all provisions of same and that no employee, or applicant for employment has been discriminated against under the terms of such ordinances by either or its officers, members, agents, employees, contractors or vendors. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 20 of 41 14.12.2 No Discrimination in Emplovment during the Performance of this Contract. TWU acknowledges that during the performance of this Contract TWU will require that its contractors, subcontractors, subrecipients, and vendors also comply with applicable discrimination laws and requirements. 14.12.3 TWU's Contractors and the ADA. TWU acknowledges that in accordance with the provisions of the Americans With Disabilities Act of 1990 ("ADA"), TWU warrants that it will not unlawfully discriminate on the basis of disability in the provision of services to the general public, nor in the availability, terms and/or conditions of employment for applicants for employment with, or employees of TWU. TWU WARRANTS IT WILL FULLY COMPLY WITH ADA'S PROVISIONS AND ANY OTHER APPLICABLE FEDERAL, STATE AND LOCAL LAWS CONCERNING DISABILITY AND WILL TO THE EXTENT PERMITTED BY APPLICABLE LAW, DEFEND, INDEMNIFY AND HOLD CITY HARMLESS AGAINST ANY CLAIMS OR ALLEGATIONS ASSERTED BY THIRD PARTIES, CONTRACTORS, SUBCONTRACTORS, SUBRECIPIENTS' OR VENDORS AGAINST CITY ARISING OUT OF ITS AND/OR ITS CONTRACTORS', SUBCONTRACTORS', VENDORS', AGENTS' OR EMPLOYEES' ALLEGED FAILURE TO COMPLY WITH THE ABOVE - REFERENCED LAWS CONCERNING DISABILITY DISCRIMINATION IN THE PERFORMANCE OF THIS CONTRACT. 14.13 Conflict of Interest and Violations of Criminal Law. 14.13.1 TWU Safeguards. TWU shall establish safeguards to prohibit its employees, board members, advisors and agents from using positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business or other ties. TWU shall disclose to City any conflict of interest or potential conflict of interest described above, immediately upon discovery of such. 14.13.2 General Prohibition Against Conflicts of Interest. TWU acknowledges that no persons who is an employee, agent, consultant, officer or elected official or appointed officials of City, or TWU who exercise or have exercised any functions or responsibilities with respect to activities assisted with ARPA funds or who are in a position to participate in a decision -making process or gain inside information with regard to these activities may obtain a financial interest or benefit from a ARPA-assisted activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for 1 year thereafter. 14.13.2.1 TWU shall establish conflict of interest policies for Federal Awards and shall provide such policies in writing to City in accordance with the requirements of 2 CFR Part 200.112. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 21 of 41 14.13.3 Disclosure of Conflicts of Interest. TWU acknowledges that in compliance with 2 CFR Part 200.112, TWU is required to timely disclose to City in writing any potential conflict of interest, as described in this Section. 14.13.4 Disclosure of Texas Penal Code Violations. TWU affirms that it will adhere to the provisions of the Texas Penal Code which prohibits bribery and gifts to public servants. 14.13.5 Disclosure of Federal Criminal Law Violations. TWU acknowledges that in compliance with 2 CFR Part 200.113, TWU is required to timely disclose to City all violations of federal criminal law involving fraud, bribery or gratuity violations potentially affecting this Agreement. 14.14 Labor Standards. TWU acknowledges and agrees to the following: 14.14.1 As applicable, TWU agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis -Bacon Act (40 U.S.C. 276a-7) as amended, the provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable Federal, State and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Contract. TWU agrees to comply with the Copeland Anti -Kick Back Act (18 U.S.C. 874 et seq.) and its implementing regulations of the United States Department of Labor at 29 CFR Part 5. TWU shall maintain documentation that demonstrates compliance with hour and wage requirements of this Contract and the ARPA Regulations. Such documentation shall be made available promptly to City for review upon request. 14.14.2 TWU agrees that, where required by the ARPA Regulations, all contractors engaged under contract for construction, renovation or repair work financed in whole or in part with assistance provided under this Contract, shall comply with Federal requirements adopted by City pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under these regulations are imposed by state or local law, nothing hereunder is intended to relieve TWU of its obligation, if any, to require payment of the higher wage. TWU shall cause or require to be inserted the provisions meeting the requirements of this paragraph in all such contracts subject to such regulations. 14.14.3 If Davis -Bacon is applicable, TWU shall provide City access to employee payrolls, contractor, subrecipients', and subcontractors' payrolls and other wage information for persons performing construction of the Development. Payrolls must be submitted to the Neighborhood Services Department with each Reimbursement Request, and must be available to Neighborhood Services Department staff upon request. In addition, TWU shall ensure that City will have access to employees, contractors, subrecipients, and subcontractors and their employees in order to conduct onsite interviews with laborers and mechanics. TWU shall inform its contractors, subrecipients, and subcontractors that City staff and/or Federal agencies may conduct ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 22 of 41 periodic employee wage interview visits during the construction of the Required Improvements to ensure compliance. 14.15 Subcontracting with Small and Minoritv Firms, Women's Business Enterprises and Labor Surplus Areas. TWU acknowledges and agrees to the following: 14.15.1 TWU acknowledges that for contracts $100,000.00 or larger, TWU agrees to abide by City's policy to involve certified Business Equity Firms and to provide them equal opportunity to compete for contracts for construction, provision of professional services, purchase of equipment and supplies and provision of other services required for the completion of the Project, as stated herein. For this Contract TWU and any subcontractors, subrecipients, or contractors must comply with all federal Section 3 requirements. Additionally, TWU and any subcontractors, subrecipients, or contractors must make good faith efforts to work with the City of Fort Worth's Diversity and Inclusion Department to ensure that Business Equity Firms certified with the City are engaged to the extent possible for any covered contracts procured after the effective date of this Contract. 14.15.2 TWU acknowledges and agrees that it is national policy to award a fair share of contracts to disadvantaged business enterprises ("DBEs"), small business enterprises ("SBEs"), minority business enterprises ("MBEs"), and women's business enterprises ("WBEs"). Accordingly, affirmative steps must be taken to assure that DBEs, SBEs, MBEs, and WBEs are utilized when possible as sources of supplies, equipment, construction and services. 14.15.3 14.16 Other Laws. TWU acknowledges and agrees that failure to list any federal, state or City ordinance, law or regulation that is applicable to TWU does not excuse or relieve TWU from the requirements or responsibilities in regard to following the law, nor from the consequences or penalties for TWU's failure to follow the law, if applicable. 14.17 Assignment. TWU acknowledges and agrees that shall not assign all or any part of its rights, privileges, or duties under this Contract without the prior written approval of City. Any attempted assignment of same without approval shall be void, and shall constitute a breach of this Contract. 14.18 Right to Inspect TWU Contracts. TWU agrees that that City has the right to inspect in writing any (i) proposed contracts or other legally binding documents between regarding the ARPA funds (ii) TWU and a general contractor and subcontractors, including any lower tier subcontractors engaged in any activity that is funded as part of the construction of the Improvements, (iii) TWU and any vendor contracts arising out of the operation of the Project, and (iv) TWU and any third party contracts to be paid with ARPA Funds, prior to any charges being incurred. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 23 of 41 14.19 Force Maieure. If TWU becomes unable, either in whole or part, to fulfill its obligations under this Contract due to acts of God, strikes, lockouts, or other industrial disturbances, acts of public enemies, wars, blockades, insurrections, riots, pandemics and epidemics, earthquakes, fires, floods, restraints or prohibitions by any court, board, department, commission or agency of the United States or of any States, civil disturbances, or explosions, inclement weather, or some other reason beyond TWU's control (collectively, "Force Majeure Event"), the obligations so affected by such Force Majeure Event will be suspended only during the continuance of such event and the completion date for such obligations shall be extended for a like period. TWU will give City written notice of the existence, extent and nature of the Force Majeure Event as soon as reasonably possible after the occurrence of the event. Failure to give notice will result in the continuance of the TWU obligation regardless of the extent of any existing Force Majeure Event. TWU will use commercially reasonable efforts to remedy its inability to perform as soon as possible. 14.20 Survival. Any provision of this Contract that pertains to the ARPA Regulations, indemnity obligations, reporting requirements, the City Requirements, auditing, monitoring, record keeping and reports, City ordinances, the provisions of Section 6.6 pertaining to the Federal System Award Management, or any other applicable ARPA Project requirements, and any default and enforcement provisions necessary to enforce such provisions, shall survive the term or earlier termination of this Contract for the longer of (i) 5 years after the termination of this Contract, or (ii) 5 years after the expiration of the Contract Term, and shall be enforceable by City against TWU 14.21 REVIEW OF COUNSEL. The Parties acknowledge that each Party and its counsel have reviewed and revised this Contract and that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Contract or any of the exhibits attached hereto. 15. INDEMNIFICATION AND RELEASE. TO THE EXTENT PERMITTED BY APPLICABLE LAW, TWU COVENANTS AND AGREES TO INDEMNIFY, HOLD HARMLESS AND DEFEND, AT ITS OWN EXPENSE, CITY AND ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS OF ANY HIND OR CHARACTER, INCLUDING BUT NOT LIMITED TO CLAIMS FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER HIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES OF THE PROJECT DESCRIBED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBRECIPIENTS, OR SUBCONTRACTORS OF ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 24 of 41 CITY, BUT NOT FROM THE CITY'S OR CITY'S OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR SUBCONTACTORS ACTUAL GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AND FWHS HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY OF CITY AND ITS OFFICERS, AGENTS, SERVANTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS OR SUITS FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER HINDS OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND AGREEMENT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES OF THE PROJECT DESCRIBED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBRECIPIENTS, OR SUBCONTRACTORS OF CITY BUT NOT FROM THE CITY'S OR CITY'S OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR SUBCONTACTORS ACTUAL GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. TWU FURTHER COVENANTS AND AGREES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TO AND DOES HEREBY INDEMNIFY AND HOLD HARMLESS CITY FROM AND AGAINST ANY AND ALL INJURY, DAMAGE OR DESTRUCTION OF PROPERTY OF CITY, ARISING OUT OF OR IN CONNECTION WITH ALL ACTS OR OMISSIONS OF FWHS, ITS OFFICERS, MEMBERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBRECIPIENTS, SUBCONTRACTORS, INVITEES, LICENSEES, OR PROJECT PARTICIPANTS, OR CAUSED, IN WHOLE OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBRECIPIENTS OR SUBCONTRACTORS OF CITY BUT NOT FROM THE CITY'S OR CITY'S OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR SUBCONTACTORS ACTUAL GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. IT IS THE EXPRESS INTENTION OF THE PARTIES, BOTH FWHS AND CITY, THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION INCLUDES INDEMNITY BY FWHS TO INDEMNIFY AND PROTECT CITY FROM THE CONSEQUENCES OF CITY'S OWN NEGLIGENCE, WHETHER THAT NEGLIGENCE IS ALLEGED TO BE THE SOLE OR CONCURRING CAUSE OF THE INJURY, DAMAGE OR DEATH, TO THE EXTENT PERMITTED BY APPLICABLE LAW AND NOT THE CITY'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. TO THE EXTENT PERMITTED BY APPLICABLE LAW, TWU AGREES TO AND SHALL RELEASE CITY, ITS AGENTS, EMPLOYEES, OFFICERS AND LEGAL REPRESENTATIVES FROM ALL LIABILITY FOR INJURY, DEATH, DAMAGE OR LOSS TO PERSONS OR PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO PERFORMANCE UNDER THIS CONTRACT, EVEN IF THE INJURY, DEATH, DAMAGE OR LOSS IS CAUSED BY CITY'S SOLE OR CONCURRENT NEGLIGNECE, BUT NOT THE CITY'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 25 of 41 TWU SHALL INCLUDE AND SHALL REQUIRE ALL OF ITS CONTRACTORS, SUBRECIPIENTS AND SUBCONTRACTORS TO INCLUDE IN THEIR CONTRACTS AND SUBCONTRACTS A RELEASE AND INDEMNITY IN FAVOR OF CITY IN SUBSTANTIALLY THE SAME FORM AS ABOVE. 16. WAIVER OF IMMUNITY BY FWHS. TWU acknowledges and agrees that if TWU is a charitable or nonprofit organization and has or claims an immunity or exemption (statutory or otherwise) from and against liability for damages or injury, including death, to persons or property, TWU hereby expressly waives its rights to plead defensively such immunity or exemption as against City. This section shall not be construed to affect a governmental entity's immunities under constitutional, statutory or common law plead against any other entity other than the City. 17. INSURANCE AND BONDING. TWU will maintain blanket fidelity coverage in the form of insurance or bond in the amount of $200,000.00 to insure against loss from the fraud, theft or dishonesty of any of TWU's officers, agents, trustees, directors or employees. The proceeds of such bond shall be used to reimburse City for any and all loss of ARPA Funds occasioned by such misconduct. To effectuate such reimbursement, such fidelity coverage shall include a rider stating that reimbursement for any loss or losses thereunder shall name the City as a Loss Payee. TWU shall furnish to City, in a timely manner, but not later than 60 days after the Effective Date, certificates of insurance as proof that it has secured and paid for policies of commercial insurance as specified herein. Further, if City has not received such certificates as set forth herein, TWU shall be in default of the Contract. Such insurance shall cover all insurable risks incident to or in connection with the execution, performance, attempted performance or nonperformance of this Contract. TWU shall maintain, or require its general contractor to maintain, the following coverages and limits thereof: Commercial General Liabilitv (CGL) Insurance $1,000,000 each occurrence $2,000,000 aggregate limit Non -Profit Organization Liabilitv or Directors & Officers Liabilitv (if applicable) $1,000,000 Each Occurrence $1,000,000 Annual Aggregate Limit Business Automobile Liabilitv Insurance $300,000 each accident on a combined single -limit basis $300,000 Aggregate Insurance policy shall be endorsed to cover "Any Auto' defined as autos owned, hired and non -owned. Pending availability of the above coverage and at the discretion of City, the policy ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 26 of 41 shall be the primary responding insurance policy versus a personal auto insurance policy if or when in the course of FWHS's business as contracted herein. Workers' Compensation Insurance Part A: Statutory Limits Part B: Employer's Liability $100,000 each accident $100,000 disease -each employee $500,000 disease -policy limit Note: Such insurance shall cover employees performing work on any and all projects including but not limited to construction, demolition, and rehabilitation. FWHS or its contractors shall maintain coverages, if applicable. In the event the respective contractors do not maintain coverage, FWHS shall maintain the coverage on such contractor, if applicable, for each applicable contract. Additional Requirements Such insurance amounts shall be revised upward at City's reasonable option and no more frequently than once every 12 months, and TWU shall revise such amounts within 30 days following notice to TWU of such requirements. TWU must submit to City documentation that its general contractor, have obtained insurance coverage and have executed bonds as required in this Contract prior to payment of any monies provided hereunder. TWU acknowledges and agrees that where applicable and appropriate, insurance policies required herein shall be endorsed to include City as an additional insured as its interest may appear. Additional insured parties shall include employees, officers, agents, and volunteers of City. The Workers' Compensation Insurance policy shall be endorsed to include a waiver of subrogation, also referred to as a waiver of rights of recovery, in favor of City. Any failure on part of City to request certificate(s) of insurance shall not be construed as a waiver of such requirement or as a waiver of the insurance requirements themselves. Insurers of TWU's insurance policies shall be licensed to do business in the state of Texas by the Department of Insurance or be otherwise eligible and authorized to do business in the state of Texas. Insurers shall be acceptable to City insofar as their financial strength and solvency and each such company shall have a current minimum A.M. Best Key Rating Guide rating of A: VII or other equivalent insurance industry standard rating otherwise approved by City. Deductible limits on the foregoing insurance policies shall be at commercially reasonable levels, and in no event exceed $100,000 per occurrence. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 27 of 41 In the event there are any local, Federal or other regulatory insurance or bonding requirements for the Project, and such requirements exceed those specified herein, the former shall prevail. TWU shall require its contractors, subcontractors, vendors, and subrecipients to maintain applicable insurance coverages, limits, and other requirements as those specified herein and, shall require each to provide FWHS with certificate(s) of insurance documenting such coverage. Also, TWU shall require its contractors, subcontractors, vendors, and subrecipients to have City endorsed as additional insureds (as their interest may appear) on their respective insurance policies where applicable and appropriate. TWU shall maintain builders risk insurance at the value of the construction. 18. CERTIFICATION REGARDING LOBBYING. The undersigned for TWU hereby certifies, to the best of its knowledge and belief, that: No Federal appropriated funds have been paid or will be paid, by or on behalf of TWU, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress in connection with the awarding of any Federal contract, the making of any federal grant, the making of any Federal loan, the entering into of any cooperative agreement and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement. If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, TWU shall complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying, " in accordance with its instructions. This certification is a material representation of fact upon which reliance was placed when this Contract was made or entered into. Submission of this certificate is a prerequisite for making or entering into this Contract imposed by 31 U.S.C. Section 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000.00 and not more than $100,000.00 for each such failure. TWU shall require that the language of this certification be included in all subcontracts, subrecipient agreements, or agreements involving the expenditure of federal funds. 19. RELIGIOUS ORGANIZATION. No portion of the ARPA Funds shall be used in support of any sectarian or religious activity. In addition, there must be no religious or membership criteria for clients of an ARPA- funded activity. 19.1 Separation of Explicitly Religious Activities. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 28 of 41 TWU retains its independence and may continue to carry out its mission, including the definition, development practice, and expression of its religious beliefs, provided that it does not use ARPA Funds to support or engage in any explicitly religious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), or in any other manner prohibited by law. 19.2 Explicitly Religious Activities. If TWU engages in explicitly religious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), the explicitly religious activities must be offered separately, in time or location, from the programs or activities supported by ARPA Funds. 20. LITIGATION AND CLAIMS. TWU shall give City immediate notice in writing of any action, including any proceeding before an administrative agency, filed against TWU or any subcontractors, vendors, and subrecipients in conjunction with this Contract or the Project generally. TWU shall furnish immediately to City copies of all pertinent papers received by TWU, with respect to such action or claim. TWU shall provide a notice to City within 10 calendar days upon filing under any bankruptcy or financial insolvency provision of law. 21. NOTICE. All notices required or permitted by this Contract must be in writing and shall be effective upon receipt when (i) sent by U.S. Mail, with proper postage, certified mail return receipt requested; (ii) by a nationally recognized overnight delivery service; or (iii) other commercially reasonable manner; and addressed to the other Party at the address set out below or at such other address as the receiving Party designates by proper notice to the sending Party. City: Economic Development Department 200 Texas Street Fort Worth, TX 76102 Attention: Robert Stums Telephone: 817-3 92-2661 Copy to: City Attorney's Office 200 Texas Street Fort Worth, TX 76102 TWU: 22. TWU HAS LEGAL AUTHORITY TO ENTER INTO CONTRACT. TWU represents that it possesses the legal authority, pursuant to any proper, appropriate ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 29 of 41 and official motion, resolution or action passed or taken, to enter into this Contract and to perform the responsibilities herein required. 23. COUNTERPARTS. This Contract may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. 24. Intentionally Omitted. 25. BOYCOTTING ISRAEL PROHIBITED. TWU acknowledges that in accordance with Chapter 2271 of the Texas Government Code, City is prohibited from entering into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. The terms "boycott Israel" and "company" shall have the meanings ascribed to those terms in Section 808.001 of the Texas Government Code. By signing this Contract, TWU, certifies that TWU's signature provides written verification to City that FWHS: (1) does not boycott Israel; and (2) will not boycott Israel during the term of this Contract. 26. IMMIGRATION NATIONALITY ACT. TWU shall verify the identity and employment eligibility of its employees who perform work under this Contract, including completing the Employment Eligibility Verification Form (I- 9). Upon request by City, TWU shall provide City with copies of all I-9 forms and supporting eligibility documentation for each employee who performs work under this Contract. TWU shall adhere to all Federal and State laws as well as establish appropriate procedures and controls so that no services will be performed by any TWU employee who is not legally eligible to perform such services. TO THE EXTENT PERMITTED BY APPLICABLE LAW, FWHS SHALL INDEMNIFY CITY AND HOLD CITY HARMLESS FROM ANY PENALTIES, LIABILITIES, OR LOSSES DUE TO VIOLATIONS OF THIS PARAGRAPH BY FWHS, FWHS' EMPLOYEES, SUBCONTRACTORS, SUBRECIPIENTS, AGENTS, OR LICENSEES. City, upon written notice to TWU, shall have the right to immediately terminate this Contract for violations of this provision by TWU. 27. Prohibition on Bovcottina Enerev Companies. TWU acknowledges that in accordance with Chapter 2276 of the Texas Government Code, the City is prohibited from entering into a contract for goods or services that has a value of $100,000 or more that is to be paid wholly or partly from public funds of the City with a company with 10 or more full-time employees unless the contract contains a written verification from the company that it: (1) does not boycott energy companies; and (2) will not boycott energy companies during the term of the contract. The terms "boycott energy company" and "company" have the meaning ascribed to those terms by Chapter 2276 of the Texas Government Code. To the extent that Chapter 2276 of the Government Code is applicable to this Agreement, by signing this Agreement, TWU certifies that TWU's signature provides written verification to the City ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 30 of 41 that FWHS: (1) does not boycott energy companies; and (2) will not boycott energy companies during the term of this Contract. 28. Prohibition on Discrimination Against Firearm and Ammunition Industries. TWU acknowledges that except as otherwise provided by Chapter 2274 of the Texas Government Code, the City is prohibited from entering into a contract for goods or services that has a value of $100,000 or more that is to be paid wholly or partly from public funds of the City with a company with 10 or more full-time employees unless the contract contains a written verification from the company that it: (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate during the term of the contract against a firearm entity or firearm trade association. The terms "discriminate," "firearm entity" and "firearm trade association" have the meaning ascribed to those terms by Chapter 2274 of the Texas Government Code. To the extent that Chapter 2274 of the Government Code is applicable to this Agreement, by signing this Agreement, TWU certifies that F TWU's WHS's signature provides written verification to the City that FWHS: (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate against a firearm entity or firearm trade association during the term of this Contract. 29. ELECTRONIC SIGNATURES. This Agreement may be executed by electronic signature, which will be considered as an original signature for all purposes and have the same force and effect as an original signature. For these purposes, "electronic signature" means electronically scanned and transmitted versions (e.g. via pdf file or facsimile transmission) of an original signature, or signatures electronically inserted via software such as Adobe Sign. [SIGNATURES APPEAR ON NEXT PAGE] ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 31 of 41 IN WITNESS WHEREOF, the Parties, by affixing their signatures below, execute this Contract to be effective as of the Effective Date. CITY OF FORT WORTH By: William Johnson (Air 30,202418:17 CDT) William Johnson, Assistant City Manager Apr 30, 2024 Date: 4p49b�Qn p s°f°fnRT0do �o o40, ATTEST: v o *oo0 * d 00 o <, aEapS�ap City Secretary Jannette S. Goodall M&C 22-0791 Dated 9/27/22 Form 1295: Not Required Approval Recommended by: Robert Stu rns(Apr 30, 2024 16:40 CDT) Robert Sturns, Director TEXAS WESLEYAN UNIVERSITY By: Name:p /yLC1S'er Title: President Date: L/1301202 APPROVED AS TO FORM AND LEGALITY: Douglas Black (May 1, 202409:52 CDT) Douglas W Black, Sr. Assistant City Attorney City of Fort Worth Contract Compliance Manager: By signing I acknowledge that I am the person responsible For the monitoring and administration of this contract, including Ensuring all performance and reporting requirements. Robert Sturns (Apr 30, 202416:40 CDT) Name: OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 32 of 41 EXHIBITS: Exhibit "A" — Project Summary and Scope of Work Exhibit "B" — Budget Exhibit "C" — Construction Schedule Exhibit "D" — Audit Requirements Exhibit z" Loan Documents Exhibit "F" — Reimbursement Forms Exhibit "G" — Documentation of ARPA Requirements Exhibit "H" — Federal Labor Standards Provisions - Davis -Bacon Requirements Exhibit "I" F;eetion 3 Reporting Form* Exhibit "I-1" — Section 3 Project Service Area Map Exhibit a J" Standards for !''.,,,,plete ll.,..,,.,,.,ntatio Exhibits that are struck through are not applicable to the Contract. ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 33 of 41 EXHIBIT "A" ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 34 of 41 ORT WORTH PROJECT MANUAL FOR THE CONSTRUCTION OF TEXAS WESLEYAN ATHLETIC COMPLEX PHASE 1 IPRC Record No. IPRC22-0115 City Project No. 104158 FED No. 30114-0200431-104158-EO7685 X FILE No: X-27392 Mattie Parker David Cooke Mayor City Manager Christopher P. Harder, P.E. Director, Water Department William Johnson Director, Transportation and Public Works Department Prepared for The City of Fort Worth JUNE 2022 KFM ENGINEERING AND DESIGN, DAVID PITCHER, P.E. F-20821 UNIT PRICE BID SECTION 00 42 43 Developer Awarded Projects - PROPOSAL FORM Project It.. I.f."ation WA7F R DAP -HID PROPOSAL P.8. I ors Bidder's Application Biddo's Proposal Bitilist J Description I Specification Sccfion No. Una of mca=e Bid Quantity Unit Price Bid Value UNIT 1: WAT -R IMPROVEMENTS 2 3305.0109 Trench Sanety, IT—— Water Fittings w/ Restraint 33111 1 TON 241 $9.5002.0 .00 $22.895.00 4 3311.0261 a" PVC Water Pipe 33 11 10,33 11 12 $10 068.00 5 0241.1D12 Remove 6" Water Line 024114 EA 653 32D.00 —$11a0eSgq 02 411. 14 LF 341 $3131.0 $10.230.00 7 0241.1302 Remove 6" Water Valve_ M.ye.. 0241 14 M W.qp _;3.000:00 'Remove 12" Water Valve 024114 EA. 2. $Iffl, q.qq _ 9 3312.0061 'hir'eHydrant Assembly 331240 EA 2 10 3312.0117 Connection to Existing 4!'-12" Water Main 1331112,25 11 3312.2204 2" Water Service ... . ... .... 33 12 10 .—EA EA _3 1. 12 3312.2801 33.112 11 . .. EA . I _.$32,500.00 $32,500,00 I . 3 ­. 3312.3002 . . . . 6" . Gate 1. I Valve . . . 33 12 20 E A -EA" 3 $ 1 a 0 0:00 $ 40000 4 34-12,2-0, 7 $3,400.00 33 12 20 1-1— --$1.500.00 5--00MID —A§�Pqq- 00 16 )241.1510 Salvage Fire Hydrant 0241 14 EA $1.500.00 TOTAL YNIT 1: WATER IMPROVEMENTS $254.493.00 CrTy Of FORT WORTH STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS - DEVELOPER AWARDED PROJECTS Pom Vinson May 22, 2019 DO 42 43Jid ?mpo,a1_DAP jcpw1cAc .,15,. UNIT PRICE BID i Bidlist Item No. I 1 I 2 3 4 SECTION OD 42 43 Developer Awarded Projects - PROPOSAL FORM Project Item Information Description I Specification Section No. SANITARYSEWER DAP-BIDPROPOSAL Pago 2 or S Bidder's Application Bidders Proposal Unit of Bid Unit Price I Bid Value Measure Quantity UNIT II: SANITARY_ SEWER IMPROVEMENTS_ 1 3301.0101 Manhole Vacuum Testinq 33 01 30 EA 1 1 $500.001 $500:00 3305-0109 Trench Safetv 3305 10 LF 5 $100.00 $500.00 3331.3201 V' Sewer Service 3331 50 EA 1 $6,500.00 $.6,500.00 3339.1001 4' Manhole 33 39 10, 33 39 20 I EA 1 $8,000.00 $8.000.00 TOTAL UNIT II: SANITARY SEWER IMPROVEMENTS $15.500.001 CITY OF FORT WORTH STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS - DEVELOPER AWARDED PROJECTS Form Venian May 22.2019 00 42 43_Bid Prapnsol_DAP_x9m1te_Shcets--Jsx UNIT PRICE BID SECTION 00 42 43 Developer Awarded Projects - PROPOSAL FORM Project Item Infomlation DRAINAGE DAP -BID PROPOSAL Pea. 3 or 5 Bidder's Application Bidlist Item) Desorption Specification Section No. Unit Of Bid No. Meastue Quantity UNIT III: DRAINACa_E IMPROVEMENTS 1 �9999.0000 T WIDE REINFORCED CONCRETE FLU9E 00 00 00 I LF 76 2 9999.0001 318" STEEL PLATE BOLTED DOWN &RUST 00 00 00 SF 18.1 PROOF TOTAL UNIT III: DRAINAGE IMPROVEMENTS Bidders Proposal Unit Price I Bid Value. $120.001 $9,120:00 $200,0011 $3.620.00 $12,740,00 CITY OF FORT WORTH STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS - DEVELOPER AWARDED PROJECTS Form Vernon Mw• 22, 2019 0042 43_Bid Propos& DAP_rcpa t she .zlx PAVING DAP -BID PROPOSAL Page of 5 SECTION 00 42 43 Developer Awarded Projects- PROPOSAL FORM UNIT PRICE BID Bidder's Application Project Item Information Bidder's Proposal Bidlist Item) 1 Unit of id Description Specification Section No. Measure Qmalty Unit Price Bid Value Z. � : UNIT IV: PAVINI.0, IMPROVEMENTS 1 0241,1100 Remove Asphalt Pavement 9,119 $20.00 $42 38 .00 2 0241.0100 Remove Sidewalk 024113 SF etj�'O' $4,.00_ $26.08.0.00 3' bi4f. a6T k i;W6�� 6 o'n' creteb r'w—e 0,2,41 1-3— SF 1,105 $6�00 $6,630.00 Remove Conc donci Pvmt...... 0241 15 SY 281 30.09 -Qq Remove C.u.rb.&.Gu.tte.r- 6 ...Conc 0241.1607 T'Surface Milling 0241 15 SY 369 $50.00 $18.460.00 Si6T.61'iT10­Wide'ASphaItPvmt Repair, Residential 32.01'.17 LIF Soo _.Rq� jzq. 1P.00 — ;K§,§j I 8 ........ ... 3201.0201 Asphalt Pvmt Repair Beyond Defined Width, 3201 17 SY 336 $10 .00 R $ 5gkq.gq 9 3201,0614 Conc Pvmt Repair, Residential 32 01 29 BY 600.00 10 3212.02.02.3." Asphalt. Pvmt .Type ..0 32 12 16 —5y­ _..§22.140.00 11 3213.0301 4" Conc Sidewalk 321320 SF 3-014 V30140.00 12 3213.0505 Barrier Free Ramp, Type $21320 EA 4 $3.20000 $12.800..00. $60. L-09 $4 0 0.00 . - 14 3217.4301 Grrio�� ��i Marking 3217 23 LIF 286 $4. $1,144.00 347.1,09011- Ron'trol. . 13 — MO— __.1__.J3,qq0.Q0_$A0.q0._0.0 16 -Traffic 9999.0002 R - emove Ex. Bollards 0000 00 EA 6 $60066 $3,0 0.00, 117 9999.0003 Remove Ex. Street Sign 00 00 00 EA 2 18 9999.0004 Remove Ex. Bench 00 00 00 EA 1 $500.00 $500.00 TOTAL UNIT IV: PAVING IMPROVEMENTS $358544.00 CITY OF FORT WORTH STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS - DEVELOPER AWARDED PROJECTS Form Vergion Mry 22,2019 00 42 43,11id UNIT PRICE BID SECTION 00 42 43 Developer Awarded Projects • PROPOSAL FORM Project Item Information STREET LIGHTING DAP -DID PROPOSAL Pege 5 urS Bidder's Application Bidlist Item No. Description Specification Section No. Unit of Measure Bid Quantity UNIT V: STREET LIGHTING IMPROVEMENTS 1 — ....— 3441.3323 Furnish/Install 8' Wood Light Pole Ann ._...._ _.__...._......._ _ .......... _-_...._.....g_.__......_.. _ 34 41 20 — EA .—....... 1 _ ..�. 2 3441.3201 LED Lighting Fixture - — 34 41 20 .. EA 1 3 __ 3441.3336 Install 30' Wood Light Pole 34 41 20 u -. �EA. 1 _. 4 _. 3441.3501 Salvage Street Light Pole 34 41 20 EA 3 I TOTAL UNIT V-STREET LIGHTING IMPROVEMENTS Bid Summary UNIT 1: WATER IMPROVEMENTS UNIT II: SANITARY SEWER IMPROVEMENTS UNIT III: DRAINAGE IMPROVEMENTS UNIT IV: PAVING IMPROVEMENTS UNIT V: STREET LIGHTING IMPROVEMENTS This Bid is submitted by the entity named below: BIDDER: Bidder's Proposal Unit Price I Bid Value ___$1,000.00 $1,000,00, $1 000,00k $1 000 00 _ $3 500 00 i __ $3 . 00 $1000.001 $3000,00 $8,500.00 1 $254,493.00 j $15,500.001 $12,740.00 1 $358,644.001 $8,500,001 Total Construction Bid $649,777.00 1 BY: TITLE: DATE: Contractor agrees to complete WORK for FINAL ACCEPTANCE within 90 CONTRACT commences to run as provided In the General Conditions. END OF SECTION CITY OF FORT WORTH STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS - DEVELOPER AWARDED PROJECTS Forth Vemioo Mey 24 2014 working days after the date when the 00 42 43 Hid hopocd DAP scprme cAec,s.xlsa 00 45 12 DAP PREQUALIFICATION STATEMENT Page 1 of 1 SECTION 00 4512 DAP— PREQUALIFICATION STATEMENT Each Bidder is required to complete the information below by identifying the prequalified contractors and/or subcontractors whom they intend to utilize for the major work type(s) listed. In the "Maior Work Tvpe" box provide the complete maior work tvpe and actual description as provided by the Water Department for water and sewer and TPW for paving. Major Work Type Water Distribution, Development, 12-inch diameter and smaller Sewer Collection System, Development, 8-inches and smaller Asphalt paving construction/reconstruction < 15,000 SY Roadway and Pedestrian Lighting Contractor/Subcontractor Company Name Prequalification Expiration Date C OnatSerCcOEAYuCAr On TX 4 L. P. iOj 31 / 2Z_ C�-t�erC�r�StruCti�l �,L:P ice/ 31/-LZ CCU ,O - C�XlsiYUC�h co TX, L-P. l / 3 / 23 c onayser ConsWu dial Tx t L-- P. k / -1 124 The undersigned hereby certifies that the contractors and/or subcontractors described in the table above are currently prequalified for the work types listed. BIDDER: 00(-)CaA-S0r- a)SV, -tCh <21() Tx , L . P. 533.1 vvidglta St. t OVi- VVCVVh , TY- -i (Di 1 G BY: '' lX t�. gCjk ns (Signature) TITLE: Pr2SiC1�Yl� DATE: END OF SECTION CITY OF FORT WORM STANDARD CONSTRUCTIONPREQUALIFICATiON STATEMENT —DEVELOPER AWARD® PROJECTS Form Ve rs ion September 1, 2015 00 45 12—Prequalification Statement 2015_DAP.docx 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 004526-1 CONTRACTOR COMPLIANCE WITH WORKER'S COMPENSATION LAW Page I of 1 SECTION 00 45 26 CONTRACTOR COMPLIANCE WITH WORKER'S COMPENSATION LAW Pursuant to Texas Labor Code Section 406.096(a), as amended, Contractor certifies that it provides worker's compensation insurance coverage for all of its employees employed on City Project No. 103772. Contractor further certifies that, pursuant to Texas Labor Code, Section 406.096(b), as amended, it will provide to City its subcontractor's certificates of compliance with worker's compensation coverage. CONTRACTOR: C` C t err_ 1StY1,lCtiCYI TX, L. i�. By: bylxO I - rt Unn Ins Company (Please`Wint) c 1 \IUI(Yiltn St". Address Ft v,v- WO►y"-) TX -1l01 1 q City/State/Zip THE STATE OF TEXAS § COUNTY OF TARRANT § Signature: Title: R-esd-en+ (Please Print) BEFORE ME, the undersigned authority, on this day personally appeared 'P7i co }-•il Q9i ns known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she executed the same as the act and deed of k� c�5 i d in )1-" for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this W day of 202-7- �P?y pim•. KATHERINE ROSE A NOTARY PUBLIC * *: ID# 133467933 Notary Public in and for the State of Texas • '�y` State of Texas Comm. Exp.11-30.2025 END OF SECTION CITY OF FORT WORTH STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised April 2, 2014 TWU Athletic Complex Phase 1 104158 005243-1 Developer Awarded Project Agreement Page 1 of 4 1 SECTION 00 52 43 2 AGREEMENT 3 THIS AGREEMENT, authorized on is made by and between the Developer, 4 Texas Wesleyan University, authorized to do business in Texas ("Developer") , and Conatser 5 Construction L ugh its duly authorized 6 represen�tativ�, `Contractor"). ' 7 Developer and Contractor, in consideration of the mutual covenants hereinafter set forth, agree as 8 follows: 9 Article 1. WORK 10 Contractor shall complete all Work as specified or indicated in the Contract Documents for the 11 Project identified herein. 12 Article 2. PROJECT 13 The project for which the Work under the Contract Documents may be the whole or only a part is 14 generally described as follows: 15 TWU ATHLETIC COMPLEX PHASE 1 16 104158 17 Article 3. CONTRACT TIME 18 3.1 Time is of the essence. 19 All time limits for Milestones, if any, and Final Acceptance as stated in the Contract 20 Documents are of the essence to this Contract. 21 3.2 Final Acceptance. 22 The Work will be complete for Final Acceptance within 90 working days after the date 23 when the Contract Time commences to run as provided in Paragraph 12.04 of the Standard 24 City Conditions of the Construction Contract for Developer Awarded Projects. 25 3.3 Liquidated damages 26 Contractor recognizes that time is of the essence of this Agreement and that Developer 27 will suffer financial loss if the Work is not completed within the times specified in 28 Paragraph 3.2 above, plus any extension thereof allowed in accordance with Article 10 of 29 the Standard City Conditions of the Construction Contract for Developer Awarded 30 Projects. The Contractor also recognizes the delays, expense and difficulties involved in 31 proving in a legal proceeding the actual loss suffered by the Developer if the Work is not 32 completed on time. Accordingly, instead of requiring any such proof, Contractor agrees 33 that as liquidated damages for delay (but not as a penalty), Contractor shall pay 34 Developer Zero Dollars ($0.00) for each day that expires after the time specified in 35 Paragraph 3.2 for Final Acceptance until the City issues the Final Letter of Acceptance. CITY OF FORT WORTH TWU ATHLETIC COMPLEX Phase 1 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS — DEVELOPER AWARDED PROJECTS 104158 Revised June 16, 2016 005243-2 Developer Awarded Project Agreement Page 2 of 4 36 Article 4. CONTRACT PRICE 37 Developer agrees to pay Contractor for performance of the Work in accordance with the Contract 38 Documents an amount in current funds of Dollars 39 ($ kO-�q ,1�1� CO ). 40 Article 5. CONTRACT DOCUMENTS 41 5.1 CONTENTS: 42 A. The Contract Documents which comprise the entire agreement between Developer and 43 Contractor concerning the Work consist of the following: 44 1. This Agreement. 45 2. Attachments to this Agreement: 46 a. Bid Form (As provided by Developer) 47 1) Proposal Form (DAP Version) 48 2) Prequalification Statement 49 3) State and Federal documents (project specific) 50 b. Insurance ACORD Form(s) 51 c. Payment Bond (DAP Version) 52 d. Performance Bond (DAP Version) 53 e. Maintenance Bond (DAP Version) 54 f. Power of Attorney for the Bonds 55 g. Worker's Compensation Affidavit 56 h. MBE and/or SBE Commitment Form (If required) 57 3. Standard City General Conditions of the Construction Contract for Developer 58 Awarded Projects. 59 4. Supplementary Conditions. 60 5. Specifications specifically made a part of the Contract Documents by attachment 61 or, if not attached, as incorporated by reference and described in the Table of 62 Contents of the Project's Contract Documents. 63 6. Drawings. 64 7. Addenda. 65 8. Documentation submitted by Contractor prior to Notice of Award. 66 9. The following which may be delivered or issued after the Effective Date of the 67 Agreement and, if issued, become an incorporated part of the Contract Documents: 68 a. Notice to Proceed. 69 b. Field Orders. 70 c. Change Orders. 71 d. Letter of Final Acceptance. 72 73 CITY OF FORT WORTH TWU ATHLETIC COMPLEX Phase 1 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS — DEVELOPER AWARDED PROJECTS 104158 Revised June 16, 2016 005243-3 Developer Awarded Project Agreement Page 3 of 4 �zl:Wm ry-16 101110401011 W 14KIN 11110I 75 6.1 Contractor covenants and agrees to indemnify, hold harmless and defend, at its own 76 expense, the city, its officers, servants and employees, from and against any and all 77 claims arising out of, or alleged to arise out of, the work and services to be performed 78 by the contractor, its officers, agents, employees, subcontractors, licenses or invitees 79 under this contract. This indemnification arovision is snecificaliv intended to overate 80 and be effective even if it is alleged or Droven that all or some of the damages being 81 sought were caused, in whole or in Dart, by anv act, omission or negligence of the city. 82 This indemnity provision is intended to include, without limitation, indemnity for 83 costs, expenses and legal fees incurred by the city in defending against such claims and 84 causes of actions. 85 86 6.2 Contractor covenants and agrees to indemnify and hold harmless, at its own expense, 87 the city, its officers, servants and employees, from and against any and all loss, damage 88 or destruction of property of the city, arising out of, or alleged to arise out of, the work 89 and services to be performed by the contractor, its officers, agents, employees, 90 subcontractors, licensees or invitees under this contract. This indemnification 91 provision is specifically intended to overate and be effective even if it is alleged or 92 aroven that all or some of the dama2cs being- sought were caused, in whole or in Dart, 93 by anv act. omission or ne>zligence of the city. 94 95 Article 7. MISCELLANEOUS 96 7.1 Terms. 97 Terms used in this Agreement are defined in Article 1 of the Standard City Conditions of 98 the Construction Contract for Developer Awarded Projects. 99 7.2 Assignment of Contract. 100 This Agreement, including all of the Contract Documents may not be assigned by the 101 Contractor without the advanced express written consent of the Developer. 102 7.3 Successors and Assigns. 103 Developer and Contractor each binds itself, its partners, successors, assigns and legal 104 representatives to the other party hereto, in respect to all covenants, agreements and 105 obligations contained in the Contract Documents. 106 7.4 Severability. 107 Any provision or part of the Contract Documents held to be unconstitutional, void or 108 unenforceable by a court of competent jurisdiction shall be deemed stricken, and all 109 remaining provisions shall continue to be valid and binding upon DEVELOPER and 110 CONTRACTOR. 111 7.5 Governing Law and Venue. 112 This Agreement, including all of the Contract Documents is performable in the State of 113 Texas. Venue shall be Tarrant County, Texas, or the United States District Court for the 114 Northern District of Texas, Fort Worth Division. CITY OF FORT WORTH TWIJ ATHLETIC COMPLEX Phase l STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS — DEVELOPER AWARDED PROJECTS 104158 Revised June 16, 2016 005243-4 Developer Awarded Project Agreement Page 4 of 4 115 116 7.6 Authority to Sign. 117 Contractor shall attach evidence of authority to sign Agreement, if other than duly 118 authorized signatory of the Contractor. 119 120 IN WITNESS WHEREOF, Developer and Contractor have executed this Agreement in multiple 121 counterparts. 122 123 This Agreement is effective as of the last date signed by the Parties ("Effective Date"). 124 Contractor: B �. 70 (Si ure) A►'Cyk ttViCC3 i C1S (PrMed Name) Developer: Digitally signed by Donna S. Donna S. Nance Dance Date: 2022.09.28 16:44:52 B 1' :-0500' (Signature) Donna Nance (Printed Name) Title: PreSid(�en-" Title: Vice President Finance & Administration Company Name:CCCWQ�f` Company name: Texas Wesleyan University Address: CG(1.S1V"CbCY) -M , I • P. Address: 1201 Wesleyan St. \Ai i r k1 i in \Ri7 City/State/Zip: FrVt J\CM _T\)(1lDl iq City/State/Zip: Fort Worth, TX 76105 Date Date 125 CITY OF FORT WORTH TWU ATHLETIC COMPLEX Phase I STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS — DEVELOPER AWARDED PROJECTS 104158 Revised June 16, 2016 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 00 61 25 - 1 CERTIFICATE OF INSURANCE Page I of 1 SECTION 00 6125 CERTIFICATE OF INSURANCE [Assembler: For Contract Document execution, remove this page and replace with standard ACORD Certificate of Insurance form.] END OF SECTION CITY OF FORT WORTH STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised July 1, 2011 TWU Athletic Complex Phase 1 104158 Bond No. 0247465 1 2 3 4 5 6 7 8 9 10 11 12 13 14 IS 16 17 006213-1 PERFOMMANCE BOAM Page I of 3 SECTION 00 62 13 PERFORMANCE BOND THE STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS: COUNTY OF TARRANT § That we, Conatser Construction TX, L.P. , known as "Principal" herein and Berkley Insurance Company _, a corporate surety(sureties, if more than one) duly authorized to do business in the State of Texas, known as "Surety" herein (whether one or more), are held and firmly bound unto the Developer, Champions Way DFW, LP, authorized to do business in Texas ("Developer") and the City of Fort Worth, a Texas municipal corporation ("City"), in the penal Sum Of. Six Hundred Forty Nine Thousand, Seven Hundred Seventy Seven and No/100------------- Dollars ($ 649,777.00 lawful money of the United States, to be paid in Fort Worth, Tarrant County, Texas for the payment of which sum well and truly to be made jointly unto the Developer and the City as dual obligees, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. 18 WHEREAS, Developer and City have entered into an Agreement for the construction of 19 community facilities in the City of Fort Worth by and through a Community Facilities 20 Agreement, CFA Number 21-0155 ;and 21 WHEREAS, the Principal has entered into a certain written contract with the Developer awarded 22 the day of ., 20�, which Contract is hereby referred to and made a 23 part hereof for all purposes as if fully set forth herein, to furnish all materials, equipment labor 24 and other accessories defined by law, in the prosecution of the Work, including any Change 25 Orders, as provided for in said Contract designated as TWU Athletic Complex Phase 1. 26 NOW, THEREFORE, the condition of this obligation is such that if the said Principal 27 shall faithfully perform it obligations under the Contract and shall in all respects duly and 28 faithfully perform the Work, including Change Orders, under the Contract, according to the plans, 29 specifications, and contract documents therein referred to, and as well during any period of 30 extension of the Contract that may be granted on the part of the Developer and/or City, then this 31 obligation shall be and become null and void, otherwise to remain in full force and effect. CITY OF FORT WOR-1'14 TWU Athletic Complex Phase 1 STANDARD CITY CONDITIONS — MVELOPER AWARDED PROJECTS 104158 Revised January 31, 2012 006213-2 PERFORMANCE BOND Page 2 of 3 I PROVIDED FURTHER, that if any legal action be filed on this Bond, venue shall lie in 2 Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort 3 Worth Division. 4 This bond is made and executed in compliance with the provisions of Chapter 2253 of the 5 Texas Government Code, as amended, and all liabilities on this bond shall be determined in 6 accordance with the provisions of said statue. 7 8 9 to 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 +1 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 IN WITNESS WHEREOF, the Principal and the Surety have SIGNED and SEALED this instrument by duly authorized agents and officers on this the -day of 20 PRTINCIPAL: Conatser Construction TX, L.P. BY:/ ATTEST:Signature��r a.�,��, Brock Huggins, President ncipal) Secrelf�l0 (PnName and Title RAYJ-v Witness as to Principal Address: 5327 Wichita St. Fort Worth, TX 76119 SURETY: Berkley Insurance Company BY Signature Robbi Morales, Attorney -in -fact Name and Title Address: 5005 LBJ Freeway, Suite 1500 Dallas, TX 75244 _ tness as to Surety Telephone Number: 214/989-0000 *]Note: If signed by an officer of the Surety Company, there must be on file a certified extract from the by-laws showing that this person has authority to sign such obligation. If Surety's physical address is different from its mailing address, both must be provided. CITY of FORT WORTH TWU Athletic Complex Phase 1 87 ANDARD CITY CONDITIONS — UFVELUPER AWARDED PROJECTS 104158 Revistd January 31, 2012 006213-3 PERFORMANCE BOND Page 3 of 3 The date of the bond shall not be prior to the date the Contract is awarded. C11"Y OF FORT WORTH TWU Athletic Complex Phase 1 STANDARD CITY CONDITIONS — DEVELOPER AWARDED PROJECTS 1041 SR Revised January 31, 2012 Bond No. 0247465 006214-1 PAYMENTBOND Page I of 2 I SECTION 00 62 14 2 PAYMENT BOND 3 4 THE STATE OF TEXAS § 5 § KNOW ALL BY THESE PRESENTS: 6 COUNTY OF TARRANT § 7 That we, _ Conatser Construction TX, LP. d known as 8 "Principal" herein, and _ _ _Berkley Insurance Company �_ a 9 corporate surety ( or sureties if more than one), duly authorized to do business in the State of Texas, 10 known as "Surety" herein (whether one or more), are held and firmly bound unto the Developer, 11 Champions Way DFW, LP, authorized to do business in Texas "(Developer"), and the City of Fort 12 Worth, a Texas municipal corporation ("City"), in the penal sum Six Hundred Forty Nine Thousand, 13 of S.eYeiLHuAdred.Seventy.Seven and No/100---------- Dollars ($ 649,777.00 _ I, 14 lawful money of the United States, to be paid in Fort Worth, Tarrant County, Texas, for the payment 15 of which sum well and truly be made jointly unto the Developer and the City as dual obligees, we 16 bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, 17 firmly by these presents: 18 WHEREAS, Developer and City have entered into an Agreement for the construction of 19 community facilities in the City of Port Worth, by and through a Community Facilities Agreement, 20 CFA Number 21-0155; and 21 WHEREAS, Principal has entered into a certain written Contract with Developer, awarded 22 the day of _ LL , 20 which Contract is hereby referred to 23 and made a part hereof for all purposes as if fully set forth herein, to furnish all materials, 24 equipment, labor and other accessories as defined by law, in the prosecution of the Work as 25 provided for in said Contract and designated as TWU Athletic Complex Phase 1. 26 NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that if 27 Principal shall pay all monies owing to any (and all) payment bond beneficiary (as defined in 28 Chapter 2253 of the Texas Government Code, as amended) in the prosecution of the Work under 29 the Contract, then this obligation shall be and become null and void; otherwise to remain in frill 30 force and effect. CITY OF FORT WORTH TWU Athletic Complex Phase 1 STANDARD errY CONDITIONS — DEVCI.OPF.R AWARDED PROJECTS 104159 Reviscd January 31, 2012 006214-2 •PAYMFNT BOND Page 2 of 2 t This bond is made and executed in compliance with the provisions of Chapter 2253 of the 2 Texas Government Code, as amended, and all liabilities on this bond shall be determined in 3 accordance with the provisions of said statute. 4 IN WITNESS WHEREOF, the Principal and Surety have each SIGNED and SEALED 5 this instrument by duly authorized agents and officers on this the _ _ day of 6 , 20 7 PRINCIPAL: Conatser Construction TX, L.P. ATTEST: BY, Signature � `. _ Brock Huggins,, President (Principal) Secret— Name and Title Address: 5327 Wichita St. Fort Worth, TX 76119 KOCXA--t-) kA3 Witness as to Principal SURETY - Berkley Insurance Company ATTEST: BY: Signature �/nd✓�___ Robbi Morales, Attorney -in -fact (Surety) Secretary Name and Title Address: 5005 LBJ Freeway, Suite 1500 Dallas, TX 75244_ W itness Surety Telephone Number: 214/989-0000 8 9 Note: If signed by an officer ofthe Surety, there must be on file a certified extract from the bylaws to showing that this person has authority to sign such obligation. If Surety's physical address is 11 different from its mailing address, both must be provided. 12 13 The date of the bond shall not be prior to the date the Contract is awarded, 14 END OF SECTION C11Y OF FORT WORTH TWU Athletic Complex Phase I STANDARD CITY CONDITIONS — DEVELOPER AWARDED PROJFCi;S 104159 Revised January 31, 2012 Bond No. 0247465 0062 19 - 1 MAINTENANCE BOND Page I of 3 SECTION 00 62 19 2 MAINTENANCE BOND 3 4 THE STATE OF TEXAS § 5 § JC OW ALL BY THESE PRESENTS: 6 COUNTY OF TARRANT § 7 8 That we Conatser Construction TX, L.P. known as 9 "Principal" herein and Berkley Insurance Company , a corporate surety 10 (sureties, if more than one) duly authorized to do business in the State of Texas, known as 11 `'Surety" herein (whether one or more), are held and firmly bound unto the Developer, 12 Champions Way DFW, LP, authorized to do business in Texas ("Developer') and the City of Fort 13 Worth, a Texas municipal corporation ("City"), in the sum Six Hundred Forty Nine Thousand, 14 of. Seven Hundred Seventy Seven and No%100 ------- Dollars ($ 649,777.00 15 lawful money of the t;nited States, to be paid in Fort Worth, Tarrant County, Texas, for payment 16 of which sum well and truly be made jointly unto the Developer and the City as dual obligees and 17 their successors, we bind ourselves, our heirs, executors, administrators, successors and assigns, 18 jointly and severally, firmly by these presents. 19 20 WHEREAS, Developer and City have entered into an Agreement for the construction of 21 community facilities in the City of Fort Worth by and through a Community Facilities 22 Agreement, CFA Number 23 WHEREAS, the Principal has entered into a certain written contract with the Developer 24 awarded the day of 20_, which Contract is 25 hereby referred to and a made part hereof for all purposes as if fully set forth herein, to furnish all 26 materials, equipment labor and other accessories as defined by law, in the prosecution of the 27 Work, including any Work resulting from a duly authorized Change Order (collectively herein, 28 the "Work") as provided for in said Contract and designated as TW U Athletic Complex Phase 1. 29 30 WHEREAS, Principal binds itself to use such materials and to so construct the Work in 31 accordance with the plans, specifications and Contract Documents that the Work is and will 32 remain free from defects in materials or workmanship for and during the period of two (2) years 33 after the date of Final Acceptance of the Work by the City ("Maintenance Period"); and 34 CITY OF FORT WORTH TWU Athletic Complex Phase I STANDARD CITY CONDMONS—DEVELOPER AWARDED PROMMS 104158 Revised January 31, 2012 1 0� 3 4 5 6 7 8 9 IQ 11 12 13 14 15 16 17 18 19 24 21 22 23 0062 19-2 IMAINI'ENANCE POND Page 2 or 3 WHEREAS, Principal binds itself to repair or reconstruct the Work in whole or in part upon receiving notice from the Developer and/or City of the need thereof at any time within the Maintenance Period. NOW THEREFORE, the condition of this obligation is such that if Principal shall remedy any defective Work, for which timely notice was provided by Developer or City, to a completion satisfactory to the City, then this obligation shall become null and void; otherwise to remain in full force and effect. PROVIDED, HOWEVER, if Principal shall fail so to repair or reconstruct any timely noticed defective Work, it is agreed that the Developer or City may cause any and all such defective Work to be repaired and/or reconstructed with all associated costs thereof being borne by the Principal and the Surety under this Maintenance Bond; and PROVIDED FURTHER, that if any legal action be tiled on this Bond, venue shall lie in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division; and PROVIDED FURTHER, that this obligation shall be continuous in nature and successive recoveries may be had hereon for successive breaches. CITY OF FORT WORTH STANDARD CITY CONDI 11ONS — DF.VNI.UPhR AWARDED PROJEX rS Revised January 31, 2012 TWIT Athletic Complex Phase 1 104159 0062 19-3 MAIN'rRNANCF BONI) Page 3 a 3 I IN WITNESS WHEREOF, the Principal and the Surety have each SIGNED and SEALED this 2 instrument by duly authorized agents and officers on this the day of 3 .20 4 5 PRINCIPAL: 6 Conatser Construction TX, L.P. 7 8 /�% %P ti 9 B� : e od 10 Signature II ATTESTT.- 12 13 Brock Huggins, President 14 (Principal) Secreeta,Ip Name and Title 15 16 Address: 5327 Wichita St. 17 Fort Worth, TX 76119 18 K R� 19 20 Witness as to Principal 21 SURETY 22 Berkley Insurance Company 23 24 25 BY: 26 Signature 27 28 Robbi Morales, Attorney -in -fact 29 ATTEST: Name and Title 30 CC 31 '•}lfC�r-- Address: 5005 LBJ Freeway, Suite 1500 32 (Sure }Secretary Dallas,, TX .75244 .. _ 33 34 35 1 ' n ss as to Surety Telephone Number: 214/989-0000 36 37 *Note: If signed by an officer of the Surety Company, there must be on file a certified extract 38 from the by-laws showing that this person has authority to sign such obligation. If 39 Surety's physical address is different from its mailing address, both must be provided. 40 41 The date of the bond shall not be prior to the date the Contract is awarded 42 CITY OF FORT WORTH TWU Athletic Complex Phase I STANDARD CITY CONDITIONS — DF.VF.I.OPF.R AWARDED PROJECTS 104158 Revised January 31, 2012 No. BI-7280k-el POWER OF ATTORNEY BERKLEY INSURANCE COMPANY WILMINGTON, DELAWARE NOTICE: The warning found elsewhere in this Power of Attorney affects the validity thereof. Please review carefully. KNOW ALL MEN BY THESE PRESENTS, that BERKLEY INSURANCE COMPANY (the "Company"), a corporation duly organized and existing under the laws of the State of Delaware, having its principal office in Greenwich, CT, has made, constituted and appointed, and does by these presents make, constitute and appoint: Ricardo J. Reyna; Don E. Cornell, Sophinie Hunter; Robbi Morales, Kelly A. Westbrook; Tina McEivan; Joshua Saunders; Tonie Petranek; or Mikaela Peppers of Aon Risk Services Southwest, Inc. of Dallas, TX its true and lawful Attorney -in -Fact, to sign its name as surety only as delineated below and to execute, seal, acknowledge and deliver any and all bonds and undertakings, with the exception of Financial Guaranty Insurance, providing that no single obligation shall exceed Fifty Million and 00/100 U.S. Dollars (U.S.$50,000,000.00), to the same extent as if such bonds had been duly executed and acknowledged by the regularly elected officers of the Company at its principal office in their own proper persons. This Power of Attorney shall be construed and enforced in accordance with, and governed by, the laws of the State of Delaware, without giving effect to the principles of conflicts of laws thereof. This Power of Attorney is granted pursuant to the following resolutions which were duly and validly adopted at a meeting of the Board of directors of the Company held on January 25, 2010: RESOLVED, that, with respect to the Surety business written by Berkley Surety, the Chairman of the Board, Chief Executive Officer, President or any Vice President of the Company, in conjunction with the Secretary or any Assistant Secretary are hereby authorized to execute powers of attorney authorizing and qualifying the attorney -in -fact named therein to execute bonds, undertakings, recognizances, or other suretyship obligations on behalf of the Company, and to affix the corporate seal of the Company to powers of attorney executed pursuant hereto; and said officers may remove any such attorney -in -fact and revoke any power of attorney previously granted; and further RESOLVED, that such power of attorney limits the acts of those named therein to the bonds, undertakings, recognizances, or other suretyship obligations specifically named therein, and they have no authority to bind the Company except in the manner and to the extent therein stated; and further RESOLVED, that such power of attorney revokes all previous powers issued on behalf of the attorney -in -fact named; and further RESOLVED, that the signature of any authorized officer and the seal of the Company may be affixed by facsimile to any power of attorney or certification thereof authorizing the execution and delivery of any bond, undertaking, recognizance, or other suretyship obligation of the Company; and such signature and seal when so used shall have the same force and effect as though manually affixed. The Company may continue to use for the purposes herein stated the facsimile signature of any person or persons who shall have been such officer or officers of the Company, notwithstanding the fact that they may have ceased to be such at the time when such instruments shall be issued. IN VATN1✓SS V,*'IIEREOF, the Company has caused these presents to. be signed and attested by its appropriate officers and its corporate seal hereunto affixed this 11th day of May /, 2022 . Attest / Berkl ' Insurance Company ' a5�1RAN�F �rl C ' � rJAPORgrF. 0� A By B 397s L-a . Lederman Je after ��awaR`` Executive Vice President & Secretary Se c` resident STATE OF CO.'ECTICUT ) ) ss: COUNTY OF FAMFI:ELD ) Sworn to before me, a Notary Public in the State of Connecticut, t'nis 11 th day of . May 2022 , by Ira S. Lederman and Jeffrey M. Halter who are sworn to me to be the Executive Vice President Secretary, and t' A Senior Vice President, respectively, of Berkley Insurance Company. M NOTARY PPUUBI�ICC A�/KEN , CONNECTICUT MY COMMISSION : Otary Public, State of Connecticut CERTIFICATE I, the undersigned, Assistant Secretary of BERKLEY INSURANCE COMPANY, DO HEREBY CERTIFY that the foregoing is a true, correct and complete copy of the original Power of Attorney; that said Power of Attorney has not been revoked or rescinded aud.. =t he authority of the Attorney -in -Fact set forth therein, who executed the bond or undertaking to which this Power of RaN Ate++ r :'cached, is in full force and effect as of this date. �.iiider my hand and seal of the Company, this day of _ 297, �± �°Fc nwaR`Vincent P. Forte IMPORTANT NOTICE To obtain information or make a complaint: You may call Berkley Surety Group, LLC and its affiliates by telephone for information or to make a complaint: BERKLEY SURETY GROUP, LLC Please send all notices of claim on this bond to: Berkley Surety Group, LLC (866) 768-3634 412 Mount Kemble Avenue, Suite 31ON Morristown, NJ 07960 Attn: Surety Claims Department You may contact the Texas Department of Insurance to obtain information on companies, coverages, rights or complaints at: 1-800-252-3439 You may write the Texas Department of Insurance: P. O. Box 149104 Austin, TX 78714-9104 Fax: (512) 475-1771 Web: http://www.tdi.state.tx.us E-mail: ConsumerProtection �'tdi.state.tx.us PREMIUM OR CLAIM DISPUTES: Should you have a dispute concerning your premium or about a claim you should contact your agent or Berkley Surety Group, LLC first. if the dispute is not resolved, you may contact the Texas Department of Insurance. ATTACH THIS NOTICE TO YOUR BOND: This notice is for information only and does not become a part or condition of the attached document and is given to comply with Texas legal and regulatory requirements. EXHIBIT `B" ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 35 of 41 EXHIBIT "B" UNIT PRICE BID SECTION 00 42 43 DeveloperAwarded Projects - PROPOSAL FORM Project Item Information STREET LIGHTING DAP -DID PROPOSAL Peg. 5 of 5 Bidder's Application Bidlist Item No. Description Specification Section No. Unit of Measure Bid Quantity UNIT V: STREET 41GHTING IMPROVEMENTS 1 3441.3323 Furnish/Install 8' Wood Light Pole Arm 3441 20 EA 1 2 _ 3441.3201 LED Lighting Fixture 3441 20 EA 1 3_ 3441.3336 Install 30' Wood Light Pole 3441 20��--T EA 1 4 3441.3501 Salvage Street Light Pole 3441 20 `M EA — 3 TOTAL UNIT V: STREET LIGHTING IMPROVEMENTS Bid Summary UNIT I: WATER IMPROVEMENTS UNIT II: SANITARY SEWER IMPROVEMENTS UNIT III: DRAINAGE IMPROVEMENTS UNIT IV: PAVING IMPROVEMENTS UNIT V: STREET LIGHTING IMPROVEMENTS Total Construction Bid This Bid is submitted by the entity named below: Bidder's Proposal Unit Price I Bid Value $1,000.00 _ __ $1,000.00 $1,000.00 _ $.3,500.00 _ $3,500.00 $1,000.00 $3,000.00 $8,500.00 1 $264,493.00 $16,600.001 $12,740.00 $368,644.00 $8,600.00 $649,777.00 BIDDER: BY: BROCK HUGGINS CONATSER CONSTRUCTION TX, L.P. 5327 VVICHITA ST. FORT WORTH TX, 76119 TITLE: PRESIDENT DATE: 10/04/2022 Contractor agrees to complete WORK for FINAL ACCEPTANCE within 90 working days after the date when the CONTRACT commences to run as provided in the General Conditions. END OF SECTION CITY OF FORT WORTH STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS - DEVELOPER AWARDED PROJECTS Fonn Version May 22.2019 00 42 43_Bid Proposal DAP separate shectsslss EXHIBIT "C" ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 36 of 41 EXHIBIT "Crr TX Wes Athletics - Phase 1 & 2 Schedule FaRAMEL Hot Task Name Off -Site Utilities 141d 1 10/27/22 05/15/23 Conatser In Progress '] —as "a" "es Documents B Submittals _1 39tl 10/27/22 1v2m22 __JJL_I Conatser In Progress _� .mama B Submittals 13 - Engmeeretl Traffic Control Plan 12d 11/2822 12/13122 Conatar In Progress � 0eered Traffic Control Plan IS Review/Approval 5d 12107/22 12/1322 C.FW Not Started Re'r�wl Approval 16 ? - Removal of Existing 39tl 11/08/22 12/30/22 TX Was Hot SOW By Others . 3emoval of Eoslmg 1 / AT&T Damaged Pole at NW Comer of Site 39tl 1110822 12/30/22 TX Wee Hot Work being performed by AT&T kT&T Damaged Pole at NW Corner of See F Finish date NOT confirmed by AT&T - Were previously told 12/19 , " DELAY - AT&T Damaged Pole Repairs i - Notice to P.... d (NTP) o 12/30/22 12/30/22 4, 5, 16, 19 Ramel Not Stated 4vobce to Proceed (NTP) 21 Mobilization 4d 01/03/23 01/06/23 13, 16, 20 Conatser Not Started _ Mobihzaban - Construction Duration 90d 01/09/23 05/15/23 � Conshuctmn Duration E Utilities & Demo 45,1 01/09/23 03/10/23 21 Constar Hot 2J Pawng 30tl 03113/23 04/2423 23 Cameleer On Track 9 251 MisG Lights/ Cleanup 15tl M125/23 05/15/23 24 Cameleer On Track Mist Lightsl Cleanup 26 Ir- F Substantial Completion 0 05/15/23 OS/1523 23, 24, 25 Cameleer On Track +Subsembal Complebon 27zl- Fencing 28d TBD In Progress 28curement 21d 11/3U/22 122822 RameU TX W� Hot ur rin ell nt 29allellon Sd 01/0323 01/0923 2133, 28 TBD Hot ion ao Up & Treck 208d 10/27/2 08/18/23 In Progress 31 -1 Documents B Submttals 67d 10/27/22 01/30/23 Paragon In Progress 1 ) ocuments&Submittals 36 - Submittal Issuance/Review 67d 10/27/22 01/30/23 Pamgon In Progress 1 bmida11ssuan../Review 38 Review/ Approval 10d 1123122 12I06M 37 WRA/KFM Hot Partial returned 12/5/22 and 12/1922 B of 9) Rewew/ App . I 39 - Retaining Wall Sul -Development& 30d 12/1922 01/3023 Paragon Hot qtammg Wall Submdlal- Development B Approval Approval 40 Fence Selection (RFI) 10d 1711922 12I3022 TX Wea/ WRA Hot Informal RFI (email) issued 12/19/22 requesting design intent fence - __cti- (RFI) 411 Submittal Development 10d 01/0323 0111623 40 Paragon mttlial Development 421 Pemat -COFW Re —/Approval 10d 0111723 01/3023 41 City of Fort Worth IS. Eft%-CoFW Review/Approval 431 F Notice to Proceed (NTP) 6d 01/3123 02/06/23 31 TX Wes Hot Need contract executed A No. to Proceed (NTP) 44 I Mobilrzaban 0 02/06/23 02m6/23 MS +15d, 43 Paragon Not St.d d Pmj..t.d 4 weeks after Coast— "Ubhties & Demo" Start M—Kaabon 451 Q Construction Dumb- 136E .2107/23 M1B/23 44 Pamgon Not Sheted Consimct 46 Told Manufacture & Delivery 98d 1210]1 3 0626/23 Pamgon On Track Turf Manufacture & Dalr 47 — MobilizelLayoul & SWPPP 2d 02107/23 2/ 008/23 23SS, 36, 29 Paragon On Track M ibtl ze/Layoul8 SWPPP � 48 Earthwork-CuOFAI 7d � 02I09/23 02/17/23 4] Paragon On Track _ Qs = Ihwodc-DWFiII 491 — Pad Prep- Mail ContlNomnglBase Cap/Ret 49d 02/20/23 0412823 48,42 Paragon On Track I Pad Prep- M& tore ConditioninglBa..I Walls 50 I Concrete Flatwork/ Drainage/ Asphalt Track 50d 04/24/23 07/0323 49FS -5d Paragon On Track E ------- %Conereta Flatwork/ Dn 511 — Tud Install- Log..Mumbms/IMII 19d 06/28/23 07/2523 46, 50FS4d Paragon On Track I�Tud Install - Log 521 — Track Install-Surfin-SealerlTop Coal 16d 07/26/23 W1623 51 Paragon On Track Track lnst 531 Substantial Completion 0 08/16/23 OB/1623 52 Paragon On Track < lSubstanbx 54 Punch List and Final Clean 2d OB/1]/23 OB/18/23 53 Pamgon On Track 0 Punch Lis ss SiteElectrical & Sports Lighting 188d 64 I In Notice to Proceed (NTP) 5d 12/09/22 12/1522 Ramat Hot Need contract executed NobNoboo to Pnxxm,1 TP) 6s P Mobilization 0 1110 23 03/06/23 64. 44SS i20d Nema 3 Not Started Projected 4 weeks after Paragon Mobif ation <, 66 � I] Construction Duration 53d 03/0723 05/19/23 Nema 3 On Track Construction Durabon 67 - Sequence 1 24tl 0310723 04/07/23 Name 3 On Tel 11me 1 681 F Trench 24tl 13/0]23 0410723 65 Nema 3 On Track 691 �,^ Pull Boas 24tl 03/0723 04/0723 65 Nema 3 On Track 701 Contlue 24tl 03/07/23 04/0]23 65 Nema3 On Track 71I G I] Sequence 2 9d 04/11/23 04/2123 Nema3 On Track 2 Exported on December 22, 2022 5:21:38 PM CST Page 1 of 2 ]2 Switch Gear 9tl 04/11/23 04121123 68, 69, 70 Nema 3 On Track ]3 — Sequence 3 3tl 04/24/23 04/26/23 Nema 3 On Track ]4 Bases Install 31 04/24/23 04/26/23 72 Nema 3 On Track ]5 - Sequence4 6tl 04/27/23 05/04/23 Nema3 On Track ]6 Pole & Fixture Install 11 04/27/23 05/04/23 74 Nema 3 On Track ]] — Sequences 11tl 1111 23 05/19/23 Nema3 On Track 78 Wire 11tl 05/OS/23 05/19/23 76 Nema3 On Track 79 Subslanhal Completion 0 05/19/23 W19/23 67, 71, 73, 75, 7 Nema 3 On Tmck Gear ce 3 nstall u,n- e & Flxture Install Sequeroe 5 Wire #Subst anal Completion Exported on December 22, 2022 5:21:38 PM CST Page 2 of 2 EXHIBIT "D" ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 37 of 41 Texas Wesleyan University Independent Auditor's Report and Financial Statements May 31, 2023 and 2022 Texas Wesleyan University May 31, 2023 and 2022 Contents Independent Auditor's Report..............................................................................................1 Financial Statements Statements of Financial Position................................................................... Statements of Activities................................................................................. Statements of Cash Flows............................................................................. Notes to Financial Statements....................................................................... 3 4 5 7 FORWS 777 Main Street, Suite 2000 / Fort Worth, TX 76102 P 817.332.2301 / F 817.338.4608 forvis.com Independent Auditor's Report Board of Directors Texas Wesleyan University Fort Worth, Texas Opinion We have audited the financial statements of Texas Wesleyan University (University), which comprise the statements of financial position as of May 31, 2023 and 2022, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the University as of May 31, 2023 and 2022, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the University and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the University's ability to continue as a going concern within one year after the date that these financial statements are available to be issued. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. PRAXITYT"' FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office �`�� Empowering Business Glabolly Board of Directors Texas Wesleyan University In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the University's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the University's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. F 10 LLP Fort Worth, Texas September 8, 2023 Texas Wesleyan University Statements of Financial Position May 31, 2023 and 2022 2023 2022 Assets Cash and cash equivalents $ 31,610,362 $ 28,123,676 Accounts receivable, net 2,379,481 7,154,333 Restricted cash and cash equivalents 3,881,812 5,024,253 Pledges receivable, net 6,545,155 5,576,036 Prepaid expenses and other assets 1,325,600 1,249,894 Investments 59,117,458 61,342,447 Right of use assets — operating leases 90,146 - Property and equipment, net 67,508,411 66,663,471 Interest rate swap agreements 536,022 267,285 Beneficial interest in perpetual trusts 11,260,517 11,742,947 Total assets $ 184,254,964 $ 187,144,342 Liabilities and Net Assets Liabilities Accounts payable $ 2,595,157 $ 1,928,401 Accrued expenses 1,340,619 1,698,140 Accrued payroll liabilities 2,544,432 2,440,454 Deferred revenue 5,501,157 7,756,888 Refundable advance 571,579 571,579 Post -retirement benefit obligation 126,116 183,669 Operating lease liabilities 90,146 - Finance lease liabilities 628,067 - Capital lease obligations - 480,466 Notes payable 7,872,725 8,419,299 Total liabilities 21,269,998 23,478,896 Net Assets Without donor restrictions 82,398,327 83,269,422 With donor restrictions 80,586,639 80,396,024 Total net assets 162,984,966 163,665,446 Total liabilities and net assets $ 184,254,964 $ 187,144,342 See Notes to Financial Statements 3 Texas Wesleyan University Statements of Activities May 31, 2023 and 2022 2023 2022 Without Donor With Donor Without Donor With Donor Restrictions Restrictions Total Restrictions Restrictions Total Revenues, Gains, and Other Support Student tuition and fees $ 36,566,926 $ $ 36,566,926 $ 35,198,852 $ $ 35,198,852 Federal and state grants 5,160,260 5,160,260 10,883,230 10,883,230 Private gifts and grants 693,082 7,953,808 8,646,890 977,313 13,619,938 14,597,251 Investment return 2,913,240 (579,133) 2,334,107 3,993,376 1,233,943 5,227,319 Change in beneficial interest in perpetual trusts - (471,745) (471,745) - (1,384,964) (1,384,964) Auxiliary enterprises 4,631,839 4,631,839 4,525,317 4,525,317 Other revenue 1,728,038 1,728,038 3,673,981 3,673,981 Net assets released from restrictions 6,712,315 (6,712,315) - 4,403,885 (4,403,885) - Total revenues, gains, and other support 58,405,700 190,615 58,596,315 63,655,954 9,065,032 72,720,986 Expenses Instruction 21,079,845 - 21,079,845 20,023,777 - 20,023,777 Student services 14,814,326 14,814,326 13,911,557 13,911,557 Academic support 3,862,502 3,862,502 3,533,833 3,533,833 Scholarships and fellowships - - 2,731,931 2,731,931 Total education expenses 39,756,673 39,756,673 40,201,098 40,201,098 Auxiliary enterprises 3,990,125 3,990,125 3,774,909 3,774,909 Research 157,324 157,324 23,838 23,838 Community outreach 1,640,274 1,640,274 1,53 9,779 1,539,779 Independent operations 1,560,716 1,560,716 1,344,243 1,344,243 histitutional support 12,171,683 12,171,683 11,258,515 11,258,515 Total expenses 59,276,795 - 59,276,795 58,142,382 - 58,142,382 Change in Net Assets (871,095) 190,615 (680,480) 5,513,572 9,065,032 14,578,604 Net Assets, Beginning of Year 83,269,422 80,396,024 163,665,446 77,755,850 71,330,992 149,086,842 Net Assets, End of Year $ 82,398,327 $ 80,586,639 $ 162,984,966 $ 83,269,422 $ 80,396,024 $ 163,665,446 See Notes to Financial Statements 4 Texas Wesleyan University Statements of Cash Flows Years Ended May 31, 2023 and 2022 2023 2022 Operating Activities Change in net assets $ (680,480) $ 14,578,604 Items not requiring (providing) cash Depreciation and amortization 3,776,023 3,638,176 Amortization of deferred charges 9,295 9,295 Provision for bad debt 534,400 493,558 Net realized and unrealized losses on investments 2,610,369 1,894,189 Change in beneficial interest in perpetual trusts 471,745 1,384,964 Contributions restricted for long-term investment and acquisition of property and equipment (3,659,997) (8,002,000) Noncash operating lease expense 29,201 Net change in fair value of interest rate swap agreements (268,737) (657,582) Insurance gain on property and equipment - (2,064,110) Changes in Accounts receivable 4,240,452 2,413,824 Pledges receivable (117,110) (440,228) Prepaid expenses and other assets (79,279) (559,563) Accounts payable and accrued expenses (92,325) (427,911) Deferred revenue (2,255,731) 3,250,109 Operating lease liability (25,628) - Net cash provided by operating activities 4,492,198 15,511,325 Investing Activities Purchase of investments (6,377,256) (10,931,773) Proceeds from disposition of investments 6,002,561 8,682,819 Purchase of property and equipment (3,729,374) (4,785,310) Proceeds from property and equipment related insurance - 2,064,110 Net cash used in investing activities (4,104,069) (4,970,154) Financing Activities Principal payments on capital lease obligations - (318,057) Principal payments on finance lease liabilities (296,003) - Proceeds from issuance of notes payable - 35,162 Principal payments on notes payable (555,869) (536,530) Proceeds from contributions restricted for long-term investment and acquisition of property and equipment 2,807,988 6,699,402 Net cash provided by financing activities 1,956,116 5,879,977 Change in Cash, Cash Equivalents and Restricted Cash and Cash 2,344,245 16,421,148 Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, Beginning of Year 33,147,929 16,726,781 Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, End of Year $ 35,492,174 $ 33,147,929 See Notes to Financial Statements 5 Texas Wesleyan University Statements of Cash Flows (Continued) Years Ended May 31, 2023 and 2022 2023 2022 Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents to the Statements of Financial Position Cash and cash equivalents $ 31,610,362 $ 28,123,676 Restricted cash and cash equivalents 3,881,812 5,024,253 Total cash and cash equivalents $ 35,492,174 $ 33,147,929 Supplemental Cash Flows Information Interest paid $ 302,064 $ 326,105 ROU assets acquired in exchange for new operating lease liabilities $ 119,347 $ - ROU assets acquired in exchange for new finance lease liabilities $ 476,528 $ - Fixed assets in accounts payable $ 653,307 $ 238,246 See Notes to Financial Statements 6 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Note 1: Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Texas Wesleyan University (University), founded in 1890 in Fort Worth, Texas, is a United Methodist institution with a tradition integrating the liberal arts and sciences with professional and career preparation at the undergraduate level and in selected graduate and professional areas. The University is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools to award baccalaureate and master level degrees and Doctorates in Nurse Anesthesia, Education and Marriage and Family Counseling. The University is also accredited by organizations such as the University Senate of the United Methodist Church, the Texas Education Agency, the National Association of Schools of Music, the Association to Advance Collegiate Schools of Business, Commission on Accreditation of Athletic Training Education, and the Council on Accreditation of Nurse Anesthesia Educational Programs, along with memberships in various other associations and alliances. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses gains, losses, and other changes in net assets during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The University considers all liquid investments with original maturities of three months or less to be cash equivalents, except for investments purchased with endowment assets, which are classified as investments. At May 31, 2023 and 2022, cash equivalents consisted primarily of money market and bank sweep accounts with brokers. At May 31, 2023, the University's cash accounts (bank balances) exceeded federally insured limits by approximately $27,697,000. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents represents cash that has been received from donors that is restricted for capital projects. Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Investments and Net Investment Return The University measures securities at fair value. In accordance with the authoritative guidance on fair value measurements and disclosures under accounting principles generally accepted in the United States of America (GAAP), as a practical expedient, an entity holding investments in certain entities that calculated net asset value per share or its equivalent (NAV) for which the fair value is not readily determinable, is permitted to measure the fair value of such investments on the basis of that NAV without adjustment. Alternative investments for which the NAV practical expedient is not available are recorded at fair value using the fair value option. Investment return includes dividend, interest and other investment income; realized and unrealized gains and losses on investments carried at fair value; and realized gains and losses on other investments, less external investment expenses. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Investment return that is initially restricted by donor stipulation and for which the restriction will be satisfied in the same year is included in net assets with donor restrictions and then released from restriction. Other investment return is reflected in the accompanying statements of activities as net without donor restrictions, or with donor restrictions based upon the existence and nature of any donor or legally imposed restrictions. The University maintains pooled investment accounts for its endowments. Investment income and realized and unrealized gains and losses from securities in the pooled investment accounts are allocated monthly to the individual endowments based on the relationship of the fair value of the interest of each endowment to the total fair value of the pooled investments accounts, as adjusted for additions to or deductions from those accounts. Accounts Receivable Accounts receivable include student accounts, grants and other receivables. Student accounts receivable represent amounts due for tuition, fees and room and board from currently enrolled and former students and are stated at the amount of consideration from students of which the University has an unconditional right to receive. Credit is extended to students and collateral is not required. Grants and other receivables are stated at the amount management expects to collect from outstanding balances. The University provides an allowance for doubtful accounts, which is based upon a review of outstanding receivables, historical collection information and existing economic conditions. Accounts outstanding beyond the beginning of the semester are considered past due unless the student has entered into a payment plan. Students whose accounts are not current are deregistered from the University. Accounts receivable are written off when deemed uncollectible. Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful life of each asset. The University capitalizes all expenditures for new construction, major renewals and replacements, equipment and books costing over $5,000. Assets under capital or finance lease obligations and leasehold improvements are depreciated over the shorter of the lease term or their respective estimated useful lives. The estimated useful lives for each major depreciable classification of property and equipment are as follows: Building 40 — 50 years Library materials 25 years Leasehold and building improvements 15 — 30 years Furniture and equipment 3 — 10 years Long-lived Asset Impairment The University evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. No asset impairment was recognized during the years ended May 31, 2023 and 2022. Net Assets Net assets, revenues, gains and losses are classified based on the existence or absence of donor restrictions. Net assets without donor restrictions are available for use in general operations and not subject to donor or certain grantor restrictions. The governing board has designated, from net assets without donor or certain grantor restrictions, net assets for certain purposes and board -designated endowment (Note 10). Net assets with donor restrictions are subject to donor or certain grantor restrictions. Some restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other restrictions are perpetual in nature, where the donor or grantor stipulates that resources be maintained in perpetuity. Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Contributions Contributions are provided to the University either with or without restrictions placed on the gift by the donor. Revenues and net assets are separately reported to reflect the nature of those gifts — with or without donor restrictions. The value recorded for each contribution is recognized as follows: Nature of the Gift Value Recognized Conditional gifts, with or without restriction Gifts that depend on the University Not recognized until the gift becomes overcoming a donor -imposed barrier to unconditional, i.e. the donor -imposed barrier be entitled to the funds is met Unconditional gifts, with or without restriction Received at date of gift — cash and Fair value other assets Received at date of gift — property, equipment and long-lived assets Expected to be collected within one year Collected in future years Estimated fair value Net realizable value Initially reported at fair value determined using the discounted present value of estimated future cash flows technique In addition to the amount initially recognized, revenue for unconditional gifts to be collected in future years is also recognized each year as the present -value discount is amortized using the level - yield method. When a donor stipulated time restriction ends or purpose restriction is accomplished, net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statements of activities as net assets released from restrictions. Absent explicit donor stipulations for the period of time that long-lived assets must be held, expirations of restrictions for gifts of land, buildings, equipment and other long-lived assets are reported when those assets are placed in service. Gifts and investment income that are originally restricted by the donor and for which the restriction is met in the same time period are recorded as revenue with donor restrictions and then released from restriction. Conditional contributions having donor stipulations which are satisfied in the period the gift is received are recorded as revenue and net assets without donor restrictions. 10 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 At May 31, 2023, the University had a challenge grant from a foundation that was considered a conditional contribution in the amount of $1,400,000 that was not included in the financial statements as the condition had not been met. Refundable Advance In December 2017, the University was awarded a grant up to $571,579 from the city of Fort Worth that is forgivable on December 17, 2022. In 2019, this agreement was extended to March 31, 2024. Payment of the principal amount will only be required if the University does not comply with the terms of the loan agreement. Thus, the University has elected to account for the funding as a conditional contribution by applying Accounting Standards Codification (ASC) Topic 958-605, Revenue Recognition. Revenue will be recognized when the conditions are met after the 5-year performance period. There is no interest on the advance unless performance obligations are not met, and then interest will accrue on matured, unpaid amounts at 12%. Deferred Revenue Revenue from fees for student tuition is deferred and recognized over the periods to which the fees relate. Revenue from leasing property owned by the University is deferred and recognized over the periods to which the fees relate. Tuition and Auxiliary Services Revenue Tuition revenue is recognized over the term of the semester as the University provides services to students. Revenue is reported at the amount of consideration which the University expects to be entitled in exchange for providing tuition and auxiliary services. The University determines the transaction price based on standard charges for goods and services provided, reduced by discounts provided for scholarships and other price concessions provided to students. Government Grants A portion of the University's revenue is derived from cost -reimbursable federal and state contracts and grants, which are conditioned upon certain performance requirements and/or the incurrence of allowable qualifying expenses. Amounts received are recognized as revenue when the University has incurred expenditures in compliance with specific contract or grant provisions. Amounts received prior to incurring qualifying expenditures, if any are reported as refundable advances in the statements of financial position. The University received cost -reimbursable grants of approximately $953,000 and $1,195,000 that have not been recognized at May 31, 2023 and 2022, respectively, because qualifying expenditures have not yet been incurred, with advance payments of $608,459 and $565,602, respectively, recorded in the statements of financial position as deferred revenue. 11 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Income Taxes The University is exempt from income taxes under Section 501 of the Internal Revenue Code (IRC) and a similar provision of state law. However, the University is subject to federal income tax on any unrelated business taxable income. The University is not a private foundation within the meaning of Section 509(a) of the IRC. The University files tax returns in the U.S. federal jurisdiction. Advertising Expenses Advertising costs are expensed as incurred and approximated $ 1,518,000 and $1,322,000 during the years ended in May 31, 2023 and 2022, respectively. Fundraising Activities Fundraising costs are expensed as incurred. Fundraising expense for the years ended May 31, 2023 and 2022, were approximately $1,565,000 and $1,497,000, respectively. These expenses are included in institutional support and student services in the accompanying statements of activities. Reclassifications Certain reclassifications have been made to the 2022 financial statements to conform to the 2023 financial statement presentation. These reclassifications had no effect on the change in net assets. Note 2: Investments and Investment Return Investments at May 31, 2023 and 2022, consisted of the following: Cash and cash equivalents Domestic equity mutual funds International equity mutual funds Bond mutual funds Hedge funds Operating companies 2023 $ 1,946,756 23,725,848 8,770,732 5,579,693 15,312,977 3,781,452 $ 59,117,458 2022 $ 454,764 25,303,136 8,292,102 5,652,262 16,450,905 5,189,278 $ 61,342,447 12 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Total investment return is comprised of the following: Interest and dividend income, net Net realized gains on investments Net unrealized losses on investments Alternative Investments 2023 $ 4,944,476 830,230 (3,440,599) 2022 $ 6,463,926 1,787,823 (3,024,430) $ 2,334,107 $ 5,227,319 The fair value of alternative investments that have been estimated using the net asset value per share as a practical expedient consist of the following at May 31, 2023 and 2022: 2023 2022 Unfunded Redemption Redemption Fair Value Fair Value Commitments Frequency Notice Period Hedge fund (A) $ 4,852,957 $ 4,751,246 $ - Daily 60 days Hedge fund (B) - 811,181 - Semi-annually 30 days Hedge fund (C) 743,992 840,663 4,317 Nonredeemable N/A Hedge fund (D) 394,089 676,816 224,090 Nonredeemable N/A Hedge fund (E) 905,985 975,333 30,000 Nonredeemable N/A Hedge fund (F) 2,125,685 2,254,079 295,022 Nonredeemable N/A Hedge fund (G) 4,580,684 4,849,073 - Quarterly 60 days Hedge fund (H) 278,207 225,000 1,170,000 Nonredeemable N/A Hedge fund (1) 632,723 237,514 1,420,000 Nonredeemable N/A Hedge fund (J) 798,655 830,000 - Monthly 15 days $ 15,312,977 $ 16,450,905 (A) This category includes an investment in a hedge fund that invests substantially all of its assets through a master -feeder structure in a master fund. This is a multi -strategy fund with an event -driven focus, seeking to exploit situations in which announced or anticipated events create opportunities to invest in securities and other financial instruments at a discount to their exit values. The redemption is subject to a 10% holdback. (B) This category includes an investment in a hedge fund with the investment objective of achieving an attractive long-term rate of return by investing primarily in publicly traded equity securities. The fund seeks capital appreciation by investing in an actively managed portfolio of quoted securities, principally equity securities, issued by companies established or operating in emerging market countries, principally in Asia, Eastern Europe, the Middle East, Africa and Latin America. The redemption was subject to a 10% holdback. 13 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 (C) This category includes an investment in a partnership that invests in energy and natural resources, with an emphasis on investing in businesses and/or assets in: the upstream and mid -stream energy sectors, principally in North America; and the oilfield and related energy sectors. The partnership will terminate on December 31, 2024, unless sooner terminated pursuant to the provision in the partnership agreement or later if the term is extended by the general partner. (D) This category includes an investment in a partnership that invests in debt or equity instruments related to similar real estate projects. The partnership will terminate on August 31, 2034, unless sooner terminated pursuant to certain conditions in the partnership agreement. (E) This category includes an investment in a partnership that invests in a diversified portfolio of real estate investments. The partnership will terminate on August 27, 2028, subject to two one-year extension periods. (F) This category includes an investment in a partnership that invests in commercial real estate investments. (G) This category includes an investment in a hedge funds that pursue multiple strategies to diversity risks and reduce volatility. Redemptions are subject to a 10% holdback. (H) This category includes investments in commercial real estate, focusing on multi -family, strip retail and warehouses. The fund seeks to investments that emphasize low volatility and high cash flow potential. The partnership will terminate on December 1, 2031, subject to two one-year extension periods. (I) This category includes an investments in a partnership that invests in private equity funds through secondary market purchases. The partnership will terminate in 12 years, subject to three one-year extensions. (J) This category includes an investment in a partnership that invests in equity securities in developing market countries. The fund pursues capital appreciation with a focus on emerging and frontier markets. The strategy employs a fundamental, bottom -up research approach to identify stocks with favorable return prospects and seeks stocks that trade at a discount to the economic value of the business. 14 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Note 3: Accounts Receivable Accounts receivable consisted of the following at May 31, 2023 and 2022: 2023 2022 Student $ 2,601,614 $ 6,357,277 Government 237,482 565,875 Other 461,375 996,852 3,300,471 7,920,004 Less allowance for doubtful accounts (920,990) (765,671) $ 2,379,481 $ 7,154,333 Note 4: Pledges Receivable Pledges receivable at May 31, 2023 and 2022, consisted of donor restricted contributions that are expected to be collected as detailed below: 2023 2022 Due within one year $ 1,897,166 $ 1,226,502 Due in one to five years 4,294,642 3,871,763 Due in more than five years 618,000 543,059 6,809,808 5,641,324 Less unamortized discount (264,653) (65,288) $ 6,545,155 $ 5,576,036 Discount rates ranged from 0.11% and 4.73% in 2023 and 0.11% and 0.62% in 2022. No allowance was provided for the pledges based on historical experience. 15 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Note 5: Property and Equipment Property and equipment at May 31, 2023 and 2022, consists o£ 2023 2022 Land $ 1,493,612 $ 1,493,612 Leasehold improvements and other real estate 6,059,714 5,986,310 Buildings 90,091,038 86,582,004 Furniture and equipment 20,831,705 19,389,912 Library materials 5,673,982 5,673,982 Construction in progress 3,987,999 4,391,267 128,138,050 123,517,087 Less accumulated depreciation (60,629,639) (56,853,616) $ 67,508,411 $ 66,663,471 Depreciation of $3,776,023 and $3,638,176 was recorded for the years ended May 31, 2023 and 2022, respectively. Note 6: Beneficial Interest in Perpetual Trusts The University is the beneficiary of various trusts created by donors, the assets of which are not in the possession of the University. The University has the legally enforceable rights or claims to such assets, including the sole right to income therefrom. The trusts are perpetual whereby the University receives the income or a designated portion of the income into perpetuity. Income earned on trust assets is distributed to the University quarterly or annually, as provided in the agreements and was $334,008 and $367,141 during 2023 and 2022, respectively, which is included in investment return with donor restriction. Consistent with accounting principles generally accepted in the United States of America, these funds and changes in their fair value are included in the accompanying financial statements. The fair value of the funds held in trust by others at May 31, 2023 and 2022, was $11,260,517 and $11,742,947, respectively. Note 7: Line of Credit In December 2021, the University entered into an agreement with a bank for a $5,000,000 revolving bank line of credit that expires in March 2024. Interest is payable monthly at the Bloomberg Short -Term Bank Yield Index rate plus 2.00% (7.16 and 2.98% at May 31, 2023 and 2022, respectively). During the years ended May 31, 2023 and 2022, the University did not borrow against the line of credit and did not have a balance at May 31, 2023 and 2022. The line is secured by all revenues of the University. 16 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Note 8: Long-term Debt 2023 Tax-exempt note payable, bank (A) $ 7,956,772 Note payable, bank (B) 23,619 Capital lease obligations (ASC 840) (C) - 7,980,391 Less unamortized debt issuance cost (107,666) 2022 $ 8,503,162 30,098 480,466 9,013,726 (116,961) $ 7,872,725 $ 8,896,765 (A) Due December 18, 2034; monthly principal payments ranging from $43,970 to $68,537 payable monthly plus interest at 79% of 30-Day LIBOR plus 1.63%. (5.60% and 2.54% at May 31, 2023 and 2022, respectively). The note is subject to a mandatory put on December 18, 2029 (put date), at which time the outstanding principle and accrued interest on the loan shall be due and payable to the bank. After December 18, 2028, but no more than 180 days prior to the put date, the borrower may request in writing that the bank waive the mandatory put. The note is secured by all revenues of the University. (B) Due June 22, 2026; monthly payments of $698 including interest at 6.99%; secured by equipment. (C) Various capital leases (ASC 840) for furniture and equipment with original terms between three and five years at imputed interest rates of 4.00% to 5.27%, expiring in 2022-2025. Aggregate annual maturities of long-term debt at May 31, 2023, are: 2024 $ 574,191 2025 594,521 2026 614,955 2027 625,435 2028 648,886 Thereafter 4,922,403 $ 7,980,391 17 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Aggregate annual maturities on capital lease obligations at May 31, 2022 (ASC 840), are: 2023 $ 275,646 2024 173,589 2025 51,839 501,074 Less amounts representing interest (20,608) Present value of future minimum lease payments $ 480,466 Property and equipment include the following equipment under capital leases (ASC 840) at May 31, 2022: Equipment $ 1,340,721 Less accumulated depreciation (873,520) 467,201 Note 9: Interest Rate Swap Agreement As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flows due to interest rate fluctuations, the University entered into an interest rate swap agreement for its tax-exempt debt. The interest rate swap agreement provides for the University to receive interest from the counterparty at LIBOR multiplied by 79% plus 1.63% for the tax-exempt note (notional amounts of $7,956,772 and $8,503,162 as of May 31, 2023 and 2022), and to pay interest to the counterparty at a fixed rate of 3.32%. At the same time the agreement was entered into, the University purchased a Bermudian Cancellation Option, which gives the University the right, but not the obligation, to cancel all of its rights and obligations under the agreement by providing two business days' notice prior to the first day of each month commencing on December 3, 2029 and ending on December 1, 2034. In the event that the University exercises its right to cancel the swap agreement, no settlement amount will be payable by either party, with the exception of accrued by unpaid interest. The fair value of the interest rate swap agreement at May 31, 2023 and 2022, was an asset of $536,022 and $267,285, respectively, which is included in the accompanying statements of financial position. The unrealized gain on the change in the fair value of the agreement was $268,737 and $657,582 for the years ended May 31, 2023 and 2022, respectively, which is included in investment return in the accompanying statements of activities. 18 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Note 10: Net Assets Net Assets With Donor Restrictions Net assets with donor restrictions at May 31 are restricted for the following purposes or periods: 2023 2022 Subject to expenditure for specified purpose Scholarships $ 1,276,435 $ 1,622,666 Program support 4,788,452 2,704,653 Library 161,696 157,312 Faculty enrichment 305,737 284,882 Student loan funds 941,983 900,410 Capital outlay and maintenance 15,094,127 13,780,062 Student awards 31,773 25,893 General purpose 45,470 25,724 22,645,673 19,501,602 Subject to the passage of time Promises to give that are not restricted by donors but which are unavailable for expenditure until due 125,316 169,286 Endowments Subject to appropriation and expenditure when a specified event occurs Scholarships 12,096,460 13,832,488 Program support 852,777 1,009,049 Library 1,212,915 1,434,017 General purpose 154,422 188,397 Faculty enrichment 1,014,560 1,294,375 Student loan funds 183,474 214,908 Capital outlay and maintenance 75,273 142,215 Student awards 107,329 98,745 15,697,210 18,214,194 Subject to University's endowment spending policy and appropriation Scholarships $ 21,526,531 $ 21,326,466 Program support 1,534,721 1,533,156 Library 2,151,341 2,151,091 General purpose 389,357 389,357 Faculty enrichment 2,863,279 2,862,779 Student loan funds 294,954 294,954 Capital outlay and maintenance 877,571 666,218 Student awards 238,331 237,791 29,876,085 29,461,812 Beneficial interest in perpetual trusts 11,260,517 11,742,947 Total endowments 56,833,812 59,418,953 Not subject to spending policy or appropriation Promises to give for endowment for Scholarships 202,115 233,203 Capital outlay and maintenance 636,998 1,072,980 Proceeds received from promises to give for endowment not yet invested 142,725 - 981,838 1,306,183 $ 80,586,639 $ 80,396,024 19 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Net Assets Without Donor Restrictions Net assets without donor restrictions at May 31 have been designated for the following purpose: 2023 2022 Board designated endowments Scholarships $ 2,692,030 $ 2,595,847 Program support 878,623 1,344,429 General purpose 5,002,807 4,931,753 Faculty enrichment 1,059,213 1,126,375 Student awards 18,285 19,487 Capital outlay and maintenance 3,614,533 3,848,943 13,265,491 13,866,834 Other board designated net assets Scholarships 48,874 35,733 Program support 1,033,885 1,115,358 General purpose 4,404,544 4,219,229 Faculty enrichment 70,086 44,530 Student awards 1,851 1,064 Capital outlay and maintenance 393,699 390,465 5,952,939 5,806,379 $ 19,218,430 $ 19,673,213 20 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Net Assets Released from Restrictions Net assets were released from donor restrictions by incurring expenses satisfying the restricted purposes or by occurrence of other events specified by donors. 2023 Satisfaction or purpose restriction 2022 Scholarships $ 759,647 $ 977,434 Program support 2,145,803 1,635,296 Faculty enrichment 61,690 11,665 Capital outlay and maintenance 1,713,744 245,780 Student awards 1,250 13,164 Time restricted 421,790 52,772 5,103,924 2,936,111 Restricted purpose spending -rate distributions and appropriations Scholarships 1,207,336 1,068,874 Program support 51,745 50,046 General purpose - 10,195 Library 124,812 148,882 Faculty enrichment 158,254 185,883 Student awards 7,791 3,894 Capital outlay and maintenance 58,453 - 1,608,391 1,467,774 $ 6,712,315 $ 4,403,885 Note 11: Endowment The University's endowment consists of approximately 200 individual donor -restricted funds established for a variety of purposes. The endowment includes both donor -restricted endowment funds and funds designated by the governing body to function as endowments (board -designated endowment funds). As required by GAAP, net assets associated with endowment funds, including board -designated endowment funds, are classified and reported based on the existence or absence of donor -imposed restrictions. 21 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 The University's governing body is subject to the State of Texas Prudent Management of Institutional Funds Act (SPMIFA) and, thus, classifies amounts in its donor -restricted endowment funds as net assets with donor restrictions because those net assets are time restricted until the governing body appropriates such amounts for expenditures. Most of those net assets also are subject to purpose restrictions that must be met before reclassifying those net asset to net asset without donor restrictions. The governing body of the University has interpreted SPMIFA as not requiring the maintenance of purchasing power of the original gift amount contributed to an endowment fund, unless a donor stipulates the contrary. As a result of this interpretation, when reviewing its donor -restricted endowment funds, the University considers a fund to be underwater if the fair value of the fund is less than the sum of. (a) the original value of initial and subsequent gift amounts donated to the fund and (b) any accumulations to the fund that are required to be maintained in perpetuity in accordance with the direction of the applicable donor gift instrument. The University has interpreted SPMIFA to permit spending from underwater funds in accordance with the prudent measures required under the law. At May 31, 2023, funds with original gift values of $2,973,666; fair values of $2,743,029; and deficiencies of $230,637 were reported in net assets with donor restrictions. These deficiencies resulted from unfavorable market fluctuations that occurred shortly after investment of new restricted contributions and continued appropriation for certain purposes that was deemed prudent by the governing body. The University did not have any endowments with deficiencies at May 31, 2022. The University has a policy that permits spending from underwater endowment funds depending on the degree to which the fund is underwater, unless otherwise precluded by donor stipulations or laws and regulations. The governing board appropriated for expenditure $14,569 from underwater endowment funds during the year. Additionally, in accordance with SPMIFA, the University considers the following factors in making a determination to appropriate or accumulate donor -restricted endowment funds: 1. Duration and preservation of the fund 2. Purposes of the University and the fund 3. General economic conditions 4. Possible effect of inflation and deflation Expected total return from investment income and appreciation or depreciation of investments 6. Other resources of the University 7. Investment policies of the University 22 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 The composition of net assets by type of endowment fund at May 3 ] , 2023 and 2022, was: 2023 Without Donor With Donor Restrictions Restrictions Total Donor -restricted endowment funds Accumulated investment gains Board -designated endowment funds Total endowment funds Donor -restricted endowment funds Accumulated investment gains Board -designated endowment funds Total endowment funds $ - $ 41,136,602 $ 41,136,602 - 15,697,210 15,697,210 13,265,491 - 13,265,491 $ 13,265,491 $ 56,833,812 $ 70,099,303 2022 Without Donor With Donor Restrictions Restrictions Total $ - $ 41,204,759 $ 41,204,759 - 18,214,194 18,214,194 13,866,834 - 13,866,834 $ 13,866,834 $ 59,418,953 $ 73,285,787 23 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Changes in endowment net assets for the years ended May 31, 2023 and 2022, were: 2023 Without Donor With Donor Restrictions Restrictions Total Endowment net assets, beginning of year $ 13,866,834 $ 59,418,953 $ 73,285,787 Investment return Investment income 875,091 2,177,175 3,052,266 Net depreciation (1,414,597) (3,218,453) (4,633,050) Total investment return (539,506) (1,041,278) (1,580,784) Contributions and payments on contributions receivable - 402,428 402,428 Appropriation of endowment assets for expenditure (488,375) (1,474,546) (1,962,921) Change in beneficial interest in trusts - (471,745) (471,745) Other changes — board -designation of endowment funds 426,538 - 426,538 Endowment net assets, end of year $ 13,265,491 $ 56,833,812 $ 70,099,303 2022 Without Donor With Donor Restrictions Restrictions Total Endowment net assets, beginning of year $ 13,909,605 $ 59,697,791 $ 73,607,396 Investment return Investment income 441,709 1,435,562 1,877,271 Net appreciation (295,335) (860,803) (1,156,138) Total investment return 146,374 574,759 721,133 Contributions and payments on contributions receivable 286,687 2,083,702 2,370,389 Appropriation of endowment assets for expenditure (475,832) (1,552,335) (2,028,167) Change in beneficial interest in trusts - (1,384,964) (1,384,964) Endowment net assets, end of year $ 13,866,834 $ 59,418,953 $ 73,285,787 24 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 From time to time, the fair value of assets associated with individual donor -restricted endowment funds may fall below the level the University is required to retain as a fund of perpetual duration pursuant to donor stipulation or SPMIFA. The University has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs and other items supported by its endowment while seeking to maintain the purchasing power of the endowment. Endowment assets include those assets of donor -restricted endowment funds the University must hold in perpetuity or for donor -specified periods, as well as those of board -designated endowment funds. Under the University's policies, endowment assets are invested in a manner that is intended to produce results that exceed the Policy Index presented in the board -approved Statements of Investment Policy. The University expects its endowment funds to provide an average rate of return that is equal to or greater than the spending rate implied by the board -approved annual draw plus the rate of inflations as measured by the consumer price index (CPI) plus 1 %. Actual returns in any given year may vary from this amount. To satisfy its long-term rate of return objectives, the University relies on a total return strategy in which investment returns are achieved through both current yield (investment income such as dividends and interest) and capital appreciation (both realized and unrealized). The University targets a diversified asset allocation that places a greater emphasis on equity -based investments to achieve its long-term return objectives within prudent risk constraints. The University has a policy (the spending policy) of appropriating for expenditure each year 4% of its endowment fund's average fair value over the prior 16 quarters through the year end preceding the year in which expenditure is planned. In establishing this policy, the University considered the long-term expected return on its endowment. Accordingly, over the long term, the University expects the current spending policy to allow its endowment to grow at an amount that approximates inflation measured at CPI plus 1%. This is consistent with the University's objective to maintain the purchasing power of endowment assets held in perpetuity or for a specified term, as well as to provide additional real growth through new gifts and investment return. The University has a policy that permits spending from underwater endowment funds depending on the degree to which the fund is underwater, unless otherwise precluded by donor stipulations or laws and regulations. 25 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Note 12: Liquidity and Availability The University regularly monitors liquidity required to meet its operating needs and other contractual commitments, while also striving to maximize the investment of its available funds. The University has various sources of liquidity at its disposal, including cash and cash equivalents, marketable debt and equity securities, and lines of credit. See Note 7 for information about the University's lines of credit. For purposes of analyzing resources available to meet general expenditures over a 12-month period, the University considers all contributions and investment return related to its ongoing activities of education, auxiliary enterprises, research and community outreach as well as the conduct of services undertaken to support those activities to be general expenditures. For the year ended May 31, 2023, $6,548,802 of purpose restricted funds and $2,183,094 of accumulated investments gains from the endowment and $2,859,240 of other board designated funds were included in financial assets available to meet cash needs for general expenditures within one year. For the year ended May 31, 2022, $4,764,287 of purpose restricted funds and $1,938,660 of accumulated investments gains from the endowment and $2,715,913 of other board designated funds were included in financial assets available to meet cash needs for general expenditures within one year. In addition to financial assets available to meet general expenditures over the next 12 months, the University operates with a balanced budget and anticipates collecting sufficient revenue to cover general expenditures not covered by donor -restricted resources. As of May 31, 2023 and 2022, the following financial assets could readily be made available within one year of the statement of financial position date to meet general expenditures: 2023 2022 Cash and cash equivalents not encumbered by donor or board designation $ 28,946,002 $ 24,427,590 Accounts receivable, net 2,379,481 7,154,333 Contributions for general expenditures due in one year or less 46,146 52,772 Investments not encumbered by donor or board designation 5,026 22,410 Payout on donor -restricted endowments for use over next 1,688,575 1,635,600 12 months Payout on quasi -endowment for use over next 12 months 317,088 303,060 $ 33,382,318 $ 33,595,765 If necessary, the spendable yet restricted portion of the University's endowed net assets could be used to meet cash needs. Prudent investment management, however, must be considered to ensure the preservation of the funds for future use. See Note 2, Note 10 and Note 11 for further information about the University's investment portfolio, net assets and endowment funds, respectively. 26 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 The University's Governing Board (Board) has designated a portion of its unrestricted resources for endowment and other purposes. These funds are invested for long-term appreciation and current income but remain available and may be spent at the discretion of the Board. At May 31, 2023 and 2022, $393,699 and $390,465, respectively, was designated for capital outlay and maintenance by the Board and is excluded from the financial assets above, but could be made available for expenditure at the discretion of the Board. Liquidity of Investments At May 31, 2023 and 2022, approximately 68% and 65%, respectively, of the University's investment portfolio consists of highly liquid investments and 17% each year of the portfolio's investments may be redeemed either at future specified redemption dates or currently by incurring a penalty. Finally, certain investments (approximately 15% and 18% at May 31, 2023 and 2022, respectively) in real estate, private equities and private investments are subject to constraints that limit the University's ability to withdraw capital after such investments are made or may limit the amount available for withdrawal at a given redemption date. These constraints may limit the University's ability to respond quickly to changes in market conditions. Note 13: Pension and Other Post -retirement Benefit Plans Defined Contribution Plan The University has a defined contribution pension plan for full-time employees. The board of trustees determines the amount of the University's contributions to the plan. For the years ended May 31, 2023 and 2022, the University made contributions of 2% of compensation. Pension expense was $403,306 and $406,307 during 2023 and 2022, respectively. Post -retirement Benefit Plan The University funds health insurance benefits for certain retired University personnel qualified under a plan no longer offered to new employees. No future retirees will be eligible for the health insurance benefits. The University contributed approximately $30,000 and $26,000 to the plan in 2023 and 2022, respectively. 27 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 The University uses a May 31 measurement date for the plan. Information about the plan's funded status at May 31, 2023 and 2022, are as follows: 2023 2022 Benefit obligation $ (126,116) $ (183,669) Fair value of plan assets - - Funded status $ (126,116) $ (183,669) Liabilities recognized in the accompanying statements of financial position are included in post - retirement benefit obligation within liabilities at May 31, 2023 and 2022. Other significant balances and costs during 2023 and 2022 are: 2023 2022 Employer contributions $ 30,648 $ 25,540 Participant contributions $ - $ - Benefits paid $ 30,648 $ 25,540 Net periodic benefit costs $ - $ - Other changes in plan assets and benefit obligations recognized in institutional support during 2023 and 2022: Amounts arising during the period Net (gain) / loss Interest cost 2023 $ 25,513 $ 5,135 2022 $ 20,031 $ 5,509 Significant assumptions include a discounts rate of 4.56% and 3.33% in 2023 and 2022, respectively. For measurement purposes, a 7% annual rate of increase in the per capita cost of covered health care benefits was assumed. This rate is assumed to decrease by 1 % for each future year until the ultimate rate of 4% is reached, where it will remain flat at 4% for each year thereafter. The following benefit payments are expected to be paid as of May 31, 2023: 2024 $ 26,968 2025 25,718 2026 24,179 2027 22,429 2028 15,365 2029 — 2032 24,960 28 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Note 14: Disclosures About Fair Value of Assets and Liabilities Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs supported by little or no market activity and are significant to the fair value of the assets or liabilities Recurring Measurements The following tables present the fair value measurements of assets recognized in the accompanying statements of financial position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at May 31, 2023 and 2022: Fair Value May 31, 2023 Assets Investments Cash and cash equivalents $ 1,946,756 Mutual funds 38,076,273 Hedge funds, primarily equities (a) 15,312,977 Operating companies 3,781,452 Total investments $ 59,117,458 Beneficial interest in perpetual trusts $ 11,260,517 Interest rate swap agreements $ 536,022 Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (Level1) (Level2) (Level3) $ 1,946,756 $ 38,076,273 3,781,452 - 11,260,517 536,022 - 29 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) May 31, 2022 Assets Investments Cash and cash equivalents $ 454,764 $ 454,764 $ $ - Mutual funds 39,247,500 39,247,500 - - Hedge funds, primarily equities (a) 16,450,905 - - - Operating companies 5,189,278 - - 5,189,278 Total investments $ 61,342,447 Beneficial interest in perpetual trusts $ 11,742,947 - - 11,742,947 Interest rate swap agreements $ 267,285 - 267,285 - (a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts included above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statements of financial position. The following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying statements of financial position, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the year ended May 31, 2023. Investments Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market -based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. See the table below for inputs and valuation techniques used for Level 3 securities. Interest Rate Swap Agreements The fair value is estimated using forward -looking interest rate curves and discounted cash flows that are observable or can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. 30 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Beneficial Interest in Perpetual Trusts Fair value is estimated at the University's percent of the fair value of the underlying assets held in trust. Due to the perpetual existence of the trusts, the interest is classified within Level 3 of the hierarchy. Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring Level 3 fair value measurements: Operating companies Beneficial interest in perpetual trusts Transfers to and from Level 3 Fair Value at Fair Value at Valuation Unobservable 5/31/2023 5/31/2022 Technique Inputs 6 3,781,452 $ 5,189,278 Market or income Discount approach rates $ 11,260,517 $ 11,742,947 Fair value of Perpetual underlying existence investments During the years ended May 31, 2023 and 2022, transfers to Level 3 investments of $0 and $123,471, respectively, were from purchases of Level 3 investments due to capital calls and transfers out of Level 3 investments of $813,475 and $592,152, respectively, were from sales of Level 3 investments related to liquidations. Note 15: Revenue from Contracts with Students Tuition and Auxiliary Services Revenue Revenue from contracts with students for tuition and auxiliary services is reported at the amount that reflects the consideration to which the University expects to be entitled in exchange for providing instruction and housing, food and other services. These amounts are due from students, third -party payors and others and includes variable consideration for merit based and institutional scholarships. Revenue is recognized as performance obligations are satisfied, which is ratably over the academic term. Generally, the University bills students prior to the beginning of the semester, and student accounts receivable are due before classes start, unless the student is enrolled in a payment plan. 31 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 For long terms, if a student withdraws within 11 calendar days from the beginning of the academic term, the student is entitled to a full refund of tuition and fees. If a student withdraws within 12 to 15 calendar days from the beginning of the academic term, the student is entitled to a 50% refund of tuition. If a student withdraws 16-20 days from the beginning of the academic term, the student is entitled to a 25% refund of tuition. No refunds are awarded after the end of the third week of the academic term. For short terms, if a student withdraws before the beginning of the class start date through the third day of class, the student is entitled to a 100% refund of tuition. There is no refund of fees after the class start date and beginning on the fourth-class day, there will be no refund of tuition charges. The University determines the refund liability at year-end based on actual experience subsequent to year-end. At May 31, 2023, the refund liability was approximately $11,000, which is included in deferred revenue on the accompanying statements of financial position. At May 31, 2022, the refund liability was approximately $128,000. Tuition and auxiliary services revenue are considered to be separate contracts. Transaction Price and Recognition The University determines the transaction price based on standard charges for goods and services provided, reduced by discounts provided in accordance with the University's policy and implicit price concessions provided to customers. The University determines its estimates of explicit price concessions based on its discount policies. The University determines its estimate of implicit price concessions based on its historical collection experience with this class of customers. From time to time the University will receive overpayments of customer balances resulting in amounts owed back to either the customers or third parties. These amounts are excluded from revenues and are recorded as liabilities until they are refunded. As of May 31, 2023 and 2022, the amount due for refunds to students was determined not to be material. The University has determined that the nature, amount, timing and uncertainty of revenue and cash flows are affected by the following factors: • Payors (for example, customer, governmental programs and others) that have different reimbursement and payment methodologies • University's line of business that provided the service For the years ended May 31, 2023 and 2022, all revenue was from goods and services that transfer to the student over time. 32 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Contract Balances The following table provides information about the University's receivables, contract assets and contract liabilities from contracts with customers: 2023 2022 Accounts receivable, beginning of year $ 6,357,277 $ 4,154,785 Accounts receivable, end of year 2,601,614 6,357,277 Deferred revenue, beginning of year 6,288,658 3,428,859 Deferred revenue, end of year 4,151,358 6,288,658 Performance Obligations and Transaction Price Allocated to Remaining Performance Obligations Because all of its performance obligations relate to contracts with a duration of less than one year, the University has elected to apply the optional exemption provided in FASB ASC 606-10-50- 14(a) and, therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The unsatisfied or partially unsatisfied performance obligations referred to above are primarily related to providing instruction and housing to students. The performance obligations for these contracts are generally completed when the academic term is completed. Significant Judgments The University determines the transaction price based on standard charges for goods and services provided, discounts provided in accordance with the University's policy and implicit price concessions provided to customers. The University determines its estimates of explicit price concessions based on contractual agreements and its discount policies. The University determines its estimate of implicit price concessions based on its historical collection experience with each class of customers. 33 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Disaggregation of Revenue The composition of revenue by segment for the years ended May 31, 2023 and 2022, is as follows: 2023 2022 Tuition and fees Undergraduate $ 20,918,710 $ 19,551,862 Masters 3,430,884 3,700,934 Doctorate 12,217,332 11,946,056 $ 36,566,926 $ 35,198,852 Auxiliary Housing $ 1,704,652 $ 1,714,091 Meal plans 2,475,090 2,385,352 Other 452,097 425,874 $ 4,631,839 $ 4,525,317 Financing Component The University has elected the practical expedient allowed under FASB ASC 606-10-32-18 and does not adjust the promised amount of consideration from customers and third parties for the effects of a significant financing component due to the University's expectation that the period between the time the service is provided to a customer and the time the customer, or a third -party payor pays for that service will be one year or less. Note 16: Leases Change in Accounting Principle In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires lessees to recognize a lease liability and a right -of -use (ROU) asset on a discounted basis, for substantially all leases, as well as additional disclosures regarding leasing arrangements. Disclosures are required to enable users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which provides an optional transition method of applying the new lease standard. Topic 842 can be applied using either a modified retrospective approach at the beginning of the earliest period presented or, as permitted by ASU 2018-11, at the beginning of the period in which it is adopted, i.e., the comparatives under ASC 840 option. 34 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 The University adopted Topic 842 on June 1, 2022 (the effective date), using the comparatives under ASC 840 transition method, which applies Topic 842 at the beginning of the period in which it is adopted. Prior period amounts have not been adjusted in connection with the adoption of this standard. The University elected the package of practical expedients under the new standard, which permits entities to not reassess lease classification, lease identification or initial direct costs for existing or expired leases prior to the effective date. The University has lease agreements with nonlease components that relate to the lease components. The University elected the practical expedient to account for nonlease components and the lease components to which they relate as a single lease component for all. Also, the University elected to keep short-term leases with an initial term of 12 months or less off the statement of financial position. The University did not elect the hindsight practical expedient in determining the lease term for existing leases as of June 1, 2022. The most significant impact of adoption was the recognition of operating lease ROU assets and operating lease liabilities of $119,347 and $115,744, respectively, while the accounting for existing capital leases (now referred to as finance leases) remained substantially unchanged. The standard did not significantly affect the statements of activities or cash flows. Accounting Policies The University determines if an arrangement is a lease or contains a lease at inception. Leases result in the recognition of ROU assets and lease liabilities on the statements of financial position. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease, measured on a discounted basis. The University determines lease classification as operating or finance at the lease commencement date. Finance leases are included in property and equipment and finance lease liabilities in the statements of financial position. The University combines lease and nonlease components, if any, and accounts for them as a single lease component in calculating the ROU assets and lease liabilities. In addition, for certain equipment leases, the University applies a portfolio approach to effectively account for the operating lease ROU assets and liabilities. At lease commencement, the lease liability is measured at the present value of the lease payments over the lease term. The ROU asset equals the lease liability adjusted for any initial direct costs, prepaid or deferred rent, and lease incentives. The University uses the implicit rate when readily determinable. As most of the leases do not provide an implicit rate, the University has made a policy election to use a risk -free rate (the rate of a zero -coupon U.S. Treasury instrument) for the initial and subsequent measurement of all lease liabilities. The risk -free rate is determined using a period comparable with the lease term. The lease term may include options to extend or to terminate the lease that the University is reasonably certain to exercise. Lease expense is generally recognized on a straight-line basis over the lease term. The University has elected not to record leases with an initial term of 12 months or less on the statements of financial position. Lease expense on such leases is recognized on a straight-line basis over the lease term. 35 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Nature of Leases The University has entered into the following lease arrangements: Finance Leases These leases mainly consist of computer equipment. Termination of the leases generally are prohibited unless there is a violation under the lease agreement. Operating Leases The University has a lease for space that expires in 2025. The lease does not contain any renewal options and requires the University to pay all executory costs (property taxes, maintenance and insurance). Termination of the lease is generally prohibited unless there is a violation under the lease agreement. The University has leases for equipment that expire in various years between 2023 and 2025 with no renewal options. All Leases The University has no material related -party leases. The University's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Quantitative Disclosures The lease cost and other required information for the year ended May 31, 2023, are: Lease cost Finance lease cost Amortization of right -of -use asset $ 291,657 Interest on lease liabilities 21,852 Operating lease cost 31,540 Total lease cost $ 345,049 36 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases Financing cash flows from finance leases Operating cash flows from operating leases Right -of -use assets obtained in exchange for new finance lease liabilities Right -of -use assets obtained in exchange for new operating lease liabilities Weighted -average remaining lease term Finance leases Operating leases Weighted -average discount rate Finance leases Operating leases 21,852 296,003 27,968 226,870 115,774 2.5 years 2.4 years 3.51% 3.54% Property and equipment include the following equipment under finance leases at May 31, 2023: Equipment $ 1,427,316 Less accumulated amortization (784,115) $ 643,201 Future minimum lease payments and reconciliation to the statement of financial position at May 31, 2023, are as follows: Finance Operating Leases Leases 2024 $ 309,720 $ 39,238 2025 188,119 37,422 2026 114,307 17,330 2027 40,069 - Total future undiscounted lease payments 652,215 93,990 Less imputed interest (24,148) (3,844) Lease liabilities $ 628,067 $ 90,146 37 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Note 17: Operating Lease Income The University leases building space to third party tenants with terms from 12 months to 12 years. As the lessor, the University determines if an arrangement is a lease or contains a lease at inception. All the leases are accounted for as operating leases and have various market terms and conditions. The University's lease arrangements do not contain any material residual value guarantees or material restrictive covenants. Rental income recognized for operating leases was approximately $178,000 for 2023, included in other revenue on the statements of activities. The University received an advance payment of $1,200,000 for a 12-year lease agreement that the income is recognized ratably over the term of the lease. Deferred revenue of $431,856 is included in deferred revenue on the accompanying statement of financial position at May 31, 2023. The following is a schedule by years of future minimum rentals under the leases at May 31, 2023. 2024 $ 180,504 2025 139,072 2026 139,072 2027 139,072 2028 54,304 652,024 Note 18: Significant Estimates, Commitments and Concentrations Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Those matters include the following: Commitments At May 31, 2023, the University had open construction contracts for the construction and renovation of the stadium track and field of approximately $2,450,000. Contributions Approximately 21 % of all contributions was received from one donor in 2023 and approximately 63% of all contributions were received from three donors in 2022. 38 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 Investments The University invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such change could materially affect the amounts reported in the accompanying statements of financial position. Litigation In the normal course of business, the University is, from time to time, subject to allegations that may or do result in litigation. Some of these allegations are in areas not covered by the University's commercial insurance; for example, allegations regarding employment practices or performance of contracts. The University evaluates such allegations by conducting investigations to determine the validity of each potential claim. Based upon the advice of counsel, management records an estimate of the amount of ultimate expected loss, if any, for each of these matters. Events could occur that would cause the estimate of ultimate loss to differ materially in the near term. Note 19: Related Party Transactions During the years ended May 31, 2023 and 2022, University Board members and/or their affiliates contributed approximately $3,207,000 and $5,612,000, respectively, to the University. At May 31, 2023 and 2022, approximately $2,180,000 and $2,430,000, respectively, is outstanding as contributions receivable, net on the accompanying statements of financial position. Note 20: Functional Allocation of Expenses The costs of supporting the various programs and other activities have been summarized on a functional basis in the statements of activities. Accordingly, depreciation, interest and certain facility expenses have been allocated among the programs and supporting services based on direct identification or management's estimate of usage applicable based on square footage to the various programs and supporting services benefited. Supporting services have been recorded as institutional support. 39 Texas Wesleyan University Notes to Financial Statements May 31, 2023 and 2022 The following schedules presents the natural classification of expense by function for the years ended May 31, 2023 and 2022: 2023 Auxiliary Community Independent Total Program Institutional Education Enterprises Research Outreach Operations Activities Support Total Salaries and wages $ 20,066,795 $ 81,948 $ 47,834 $ 619,106 $ 554,084 $ 21,369,767 $ 3,716,479 $ 25,086,246 Employee benefits 4,459,577 15,624 3,786 326,587 151,667 4,957,241 712,333 5,669,574 Scholarships and fellowship 33,930 - - - - 33,930 73,946 107,876 Travel 1,856,514 418 9,184 69,421 62,290 1,997,827 99,388 2,097,215 Supplies 2,223,243 48,869 5,755 91,228 230,512 2,599,607 241,108 2,840,715 Utilities 53,520 - - 9,651 2,450 65,621 4,604 70,225 Other outside service 3,563,813 1,955,481 90,356 39,336 557,759 6,206,745 5,778,655 11,985,400 Depreciation 2,730,491 781,093 - 64,857 - 3,576,441 199,582 3,776,023 Interest 187,200 67,914 - 15,071 - 270,185 39,079 309,264 Other 4,581,590 1,038,778 409 405,017 1,954 6,027,748 1,306,509 7,334,257 $ 39,756,673 $ 3,990,125 $ 157,324 $ 1,640,274 $ 1,560,716 $ 47,105,112 $ 12,171,683 $ 59,276,795 Auxiliary Education Activities Salaries and wages $ 19,954,641 $ 61,179 $ Employee benefits 4,216,141 17,486 Scholarships and fellowship 2,735,102 - Travel 1,555,508 204 Supplies 1,840,544 13,334 Utilities 66,568 Other outside service 3,294,383 1,934,902 Depreciation 2,499,501 814,127 Interest 202,291 73,388 Other 3,836,419 860,289 $ 40,201,098 $ 3,774,909 $ Note 21: Subsequent Events 2022 Community Independent Total Program Institutional Research Outreach Operations Activities Support Total 8,100 $ 538,160 $ 521,061 $ 21,083,141 $ 3,593,138 $ 24,676,279 1,203 281,964 139,309 4,656,103 711,786 5,367,889 - - - 2,735,102 56,309 2,791,411 2,213 76,272 58,336 1,692,533 72,545 1,765,078 9,023 190,604 188,588 2,242,093 186,069 2,428,162 17,002 1,832 85,402 3,490 88,892 3,299 14,189 434,664 5,681,437 5,236,926 10,918,363 - 72,391 3,386,019 252,157 3,638,176 16,286 291,965 41,522 333,487 - 332,911 453 5,030,072 1,104,573 6,134,645 23,838 $ 1,539,779 $ 1,344,243 $ 46,883,867 $ 11,258,515 $ 58,142,382 Subsequent events have been evaluated through September 8, 2023, which is the date the financial statements were available to be issued. 40 EXHIBIT "F" ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 38 of 41 Project: Project No.: Budget amount: 0176000 Economic Dev Community Dev Reconciliation- Expenditures Expenditures 0176000 Economic Dev Community Dev Total Admin funds received Balance due or cash on hand Previously Reported Current Current Cumulative Cumulative Available Budget Expenditures Expenditures Expenditures Balance 0.00 $0.00 Previously Report This Period Cummulative 0.00 0.00 Check one that applies: 71 have reviewed projected expenditures and anticipate all funds will be expended ❑1 have reviewed projected expenditures and do not anticipate all funds will be expended Estimated amount of unspent funds $ Staff name and title 0.00 certify to the best of my knowledge, and believe that this report is true, complete, and accurate, and the expenditures are for the purposes and objectives set forth in the CFW ARPA award. Preparer's name and title Project: Project No.: Budget amount: Total Expenses $ Item # Expense 1 2 3 4 5 6 7 8 Amount 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 EXHIBIT "G" ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 39 of 41 EXHIBIT " G" DOCUMENTATION OF ARPA REQUIREMENTS ARPA Requirements: Developer agrees to comply fully with all applicable laws and regulations that are currently in effect or that are hereafter amended during the term of this Contract. Those laws include, but are not limited to the provisions detailed in 2 CFR Part 200. During Term of Contract: ARPA Funds will be used to construct public infrastructure improvements in support of the construction of the Texas Wesleyan Athletic Complex Phase I, which will include, but are not limited to, any water improvements, sanitary sewer improvements, drainage improvements, paving improvement and any other work associated with relocation of sanitary sewer lines due to the development of Athletic Complex. During Term the Contract: In consideration of the ARPA Funds provided through this Contract, Developer will fulfill the ARPA Requirements, the City Requirements, and will comply with all other terms and conditions of this Contract. EXHIBIT "H" ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 40 of 41 HUD-4010 U.S. Department of Housing and Urban Development Federal Labor Standards Provisions Office of Davis -Bacon and Labor Standards A. APPLICABILITY The Project or Program to which the construction work covered by this Contract pertains is being assisted by the United States of America, and the following Federal Labor Standards Provisions are included in this Contract pursuant to the provisions applicable to such Federal assistance. Minimum wages and fringe benefits i. All laborers and mechanics employed or working upon the site of the work (or otherwise working in construction or development of the project under a development statute), 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 basic hourly 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. As provided in 29 CFR 5.5(d) and (e), the appropriate wage determinations are effective by operation of law even if they have not been attached to the contract. Contributions made or costs reasonably anticipated for bona fide fringe benefits under the Davis -Bacon Act (40 U.S.C. 3141(2)(B)) on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a)(1)(v) of these contract clauses; 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 must be paid the appropriate wage rate and fringe benefits on the wage determination for the classification(s) of work actually performed, without regard to skill, except as provided in 29 CFR 5.5(a)(4). 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 classifications and wage rates conformed under 29 CFR 5.5(a)(1)(iii)) and the Davis -Bacon poster (WH-1321) must 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. ii. Frequently recurring classifications A. In addition to wage and fringe benefit rates that have been determined to be prevailing under the procedures set forth in 29 CFR part 1, a wage determination may contain, pursuant to § 1.3(f), wage and fringe benefit rates for classifications of laborers and mechanics for which conformance requests are regularly submitted pursuant to 29 CFR 5.5(a)(1)(iii), provided that: 1. The work performed by the classification is not performed by a classification in the wage determination for which a prevailing wage rate has been determined; 2. The classification is used in the area by the construction industry; and 3. The wage rate for the classification bears a reasonable relationship to the prevailing wage rates contained in the wage determination. B. The Administrator will establish wage rates for such classifications in accordance with 29 CFR 5.5(a)(1)(iii)(A)(3). Work performed in such a classification must be paid at no less than the wage and fringe benefit rate listed on the wage determination for such classification. iii. Conformance A. The contracting officer must 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 contract be Previous editions obsolete 1 Form HUD-4010, (10/2023) ref. Handbook 1344.1 classified in conformance with the wage determination. Conformance of an additional classification and wage rate and fringe benefits is appropriate 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 used 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. The conformance process may not be used to split, subdivide, or otherwise avoid application of classifications listed in the wage determination. C. If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken will be sent by the contracting officer by email to DBAconformance@dol.Rov. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30—day period that additional time is necessary. D. In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer will, by email to DBAconformance@dol.gov, refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30—day period that additional time is necessary. E. The contracting officer must promptly notify the contractor of the action taken by the Wage and Hour Division under 29 CFR 5.5 (a)(1)(iii)(C) and (D). The contractor must furnish a written copy of such determination to each affected worker or it must be posted as a part of the wage determination. The wage rate (including fringe benefits where appropriate) determined pursuant to 29 CFR 5.5 (a)(1)(iii)(C) or (D) must 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. iv. Fringe benefits not expressed as an hourly rate 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 may either pay the benefit as stated in the wage determination or may pay another bona fide fringe benefit or an hourly cash equivalent thereof. V. Unfunded plans If 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, in accordance with the criteria set forth in 29 CFR 5.28, 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. vi. Interest In the event of a failure to pay all or part of the wages required by the contract, the contractor will be required to pay interest on any underpayment of wages. Previous editions obsolete 2 Form HUD-4010, (10/2023) ref. Handbook 1344.1 2. Withholding i. Withholding requirements The U. S. Department of Housing and Urban Development may, upon its own action, or must, upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor so much of the accrued payments or advances as may be considered necessary to satisfy the liabilities of the prime contractor or any subcontractor for the full amount of wages and monetary relief, including interest, required by the clauses set forth in 29 CFR 5.5(a) for violations of this contract, or to satisfy any such liabilities required by any other Federal contract, or federally assisted contract subject to Davis -Bacon labor standards, that is held by the same prime contractor (as defined in 29 CFR 5.2). The necessary funds may be withheld from the contractor under this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract that is subject to Davis -Bacon labor standards requirements and is held by the same prime contractor, regardless of whether the other contract was awarded or assisted by the same agency, and such funds may be used to satisfy the contractor liability for which the funds were withheld. In the event of a contractor's failure to pay any laborer or mechanic, including any apprentice or helper working on the site of the work (or otherwise working in construction or development of the project under a development statute) all or part of the wages required by the contract, or upon the contractor's failure to submit the required records as discussed in 29 CFR 5.5(a)(3)(iv), HUD may on its own initiative and after written notice to the contractor, sponsor, applicant, owner, or other entity, as the case may be, 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. ii. Priority to withheld funds The Department has priority to funds withheld or to be withheld in accordance with 29 CFR 5.5(a)(2)(i) or (b)(3)(i), or both, over claims to those funds by: A. A contractor's surety(ies), including without limitation performance bond sureties and payment bond sureties; B. A contracting agency for its reprocurement costs; C. A trustee(s) (either a court -appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor, or a contractor's bankruptcy estate; D. A contractor's assignee(s); E. A contractor's successor(s); or F. A claim asserted under the Prompt Payment Act, 31 U.S.C. 3901-3907. 3. Records and certified payrolls i. Basic record requirements A. Length of record retention. All regular payrolls and other basic records must be maintained by the contractor and any subcontractor during the course of the work and preserved for all laborers and mechanics working at the site of the work (or otherwise working in construction or development of the project under a development statute) for a period of at least 3 years after all the work on the prime contract is completed. B. Information required Such records must contain the name; Social Security number; last known address, telephone number, and email address of each such worker; each worker's correct classification(s) of work actually performed; 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 40 U.S.C. 3141(2)(B) of the Davis -Bacon Act); daily and weekly number of hours actually worked in total and on each covered contract; deductions made; and actual wages paid. C. Additional records relating to fringe benefits. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(v) that the wages of any laborer or mechanic include the amount of any Previous editions obsolete 3 Form HUD-4010, (10/2023) ref. Handbook 1344.1 costs reasonably anticipated in providing benefits under a plan or program described in 40 U.S.C. 3141(2)(B) of the Davis -Bacon Act, the contractor must 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. D. Additional records relating to apprenticeship Contractors with apprentices working under approved programs must maintain written evidence of the registration of apprenticeship programs, the registration of the apprentices, and the ratios and wage rates prescribed in the applicable programs. ii. Certified payroll requirements A. Frequency and method of submission The contractor or subcontractor must submit weekly, for each week in which any DBA- or Related Acts -covered work is performed, certified payrolls to HUD if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the certified payrolls to the applicant, sponsor, owner, or other entity, as the case may be, that maintains such records, for transmission to HUD. The prime contractor is responsible for the submission of all certified payrolls by all subcontractors. A contracting agency or prime contractor may permit or require contractors to submit certified payrolls through an electronic system, as long as the electronic system requires a legally valid electronic signature; the system allows the contractor, the contracting agency, and the Department of Labor to access the certified payrolls upon request for at least 3 years after the work on the prime contract has been completed; and the contracting agency or prime contractor permits other methods of submission in situations where the contractor is unable or limited in its ability to use or access the electronic system B. Information required The certified payrolls submitted must set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i)(B), except that full Social Security numbers and last known addresses, telephone numbers, and email addresses must not be included on weekly transmittals. Instead, the certified payrolls need only include an individually identifying number for each worker (e.g., the last four digits of the worker's Social Security number). The required weekly certified payroll information may be submitted using Optional Form WH-347 or in any other format desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at https://www.dol.pov/ sites/dolgov/files/WHD/legacy/files/wh347.i)dfor its successor website. It is not a violation of this section for a prime contractor to require a subcontractor to provide full Social Security numbers and last known addresses, telephone numbers, and email addresses to the prime contractor for its own records, without weekly submission by the subcontractor to the sponsoring government agency (or the applicant, sponsor, owner, or other entity, as the case may be, that maintains such records). C. Statement of Compliance Each certified payroll submitted must be accompanied by a "Statement of Compliance," signed by the contractor or subcontractor, or the contractor's or subcontractor's agent who pays or supervises the payment of the persons working on the contract, and must certify the following: 1. That the certified payroll for the payroll period contains the information required to be provided under 29 CFR 5.5(a)(3)(ii), the appropriate information and basic records are being maintained under 29 CFR 5.5 (a)(3)(i), and such information and records are correct and complete; 2. That each laborer or mechanic (including each helper and apprentice) working 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 Previous editions obsolete 4 Form HUD-4010, (10/2023) ref. Handbook 1344.1 from the full wages earned, other than permissible deductions as set forth in 29 CFR part 3; and 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(s) of work actually performed, as specified in the applicable wage determination incorporated into the contract. D. Use of Optional Form WH-347 The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 will satisfy the requirement for submission of the "Statement of Compliance" required by 29 CFR 5.5(a)(3)(ii)(C). E. Signature The signature by the contractor, subcontractor, or the contractor's or subcontractor's agent must be an original handwritten signature or a legally valid electronic signature. F. Falsification The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under 18 U.S.C. 1001 and 31 U.S.C. 3729. G. Length of certified payroll retention The contractor or subcontractor must preserve all certified payrolls during the course of the work and for a period of 3 years after all the work on the prime contract is completed. iii. Contracts, subcontracts, and related documents The contractor or subcontractor must maintain this contract or subcontract and related documents including, without limitation, bids, proposals, amendments, modifications, and extensions. The contractor or subcontractor must preserve these contracts, subcontracts, and related documents during the course of the work and for a period of 3 years after all the work on the prime contract is completed. iv Required disclosures and access A. Required record disclosures and access to workers The contractor or subcontractor must make the records required under 29 CFR 5.5(a)(3)(i)—(iii), and any other documents that HUD or the Department of Labor deems necessary to determine compliance with the labor standards provisions of any of the applicable statutes referenced by 29 CFR 5.1, available for inspection, copying, or transcription by authorized representatives of HUD or the Department of Labor, and must permit such representatives to interview workers during working hours on the job. B. Sanctions for non-compliance with records and worker access requirements If the contractor or subcontractor fails to submit the required records or to make them available, or refuses to permit worker interviews during working hours on the job, the Federal agency may, after written notice to the contractor, sponsor, applicant, owner, or other entity, as the case may be, that maintains such records or that employs such workers, 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, or to permit worker interviews during working hours on the job, may be grounds for debarment action pursuant to 29 CFR 5.12. In addition, any contractor or other person that fails to submit the required records or make those records available to WHD within the time WHD requests that the records be produced will be precluded from introducing as evidence in an administrative proceeding under 29 CFR part 6 any of the required records that were not provided or made available to WHD. WHD will take into consideration a reasonable request from the contractor or person for an extension of the time for submission of records. WHD will determine the reasonableness of the request and may consider, among other things, the location of the records and the volume of production. C. Required information disclosures Contractors and subcontractors must maintain the full Social Security number and last known address, telephone number, and email address of each covered worker, and must provide them upon request to HUD if the agency is a party to Previous editions obsolete 5 Form HUD-4010, (10/2023) ref. Handbook 1344.1 the contract, or to the Wage and Hour Division of the Department of Labor. If the Federal agency is not such a party to the contract, the contractor, subcontractor, or both, must, upon request, provide the full Social Security number and last known address, telephone number, and email address of each covered worker to the applicant, sponsor, owner, or other entity, as the case may be, that maintains such records, for transmission to HUD, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or other compliance action. 4. Apprentices and equal employment opportunity Apprentices A. Rate of pay Apprentices will be permitted to work at less than the predetermined rate for the work they perform 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 (OA), or with a State Apprenticeship Agency recognized by the OA. A person who is not individually registered in the program, but who has been certified by the OA or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice, will be permitted to work at less than the predetermined rate for the work they perform in the first 90 days of probationary employment as an apprentice in such a program. In the event the OA or a State Apprenticeship Agency recognized by the OA withdraws approval of an apprenticeship program, the contractor will no longer be permitted to use apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. B. Fringe benefits Apprentices must be paid fringe benefits in accordance with the provisions of the apprenticeship program. If 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. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringe benefits must be paid in accordance with that determination. C. Apprenticeship ratio The allowable ratio of apprentices to journeyworkers on the job site in any craft classification must not be greater than the ratio permitted to the contractor as to the entire work force under the registered program or the ratio applicable to the locality of the project pursuant to 29 CFR 5.5(a)(4)(i)(D). Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated in 29 CFR 5.5(a)(4)(i)(A), must be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under this section must be paid not less than the applicable wage rate on the wage determination for the work actually performed. D. Reciprocity of ratios and wage rates Where a contractor is performing construction on a project in a locality other than the locality in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyworker's hourly rate) applicable within the locality in which the construction is being performed must be observed. If there is no applicable ratio or wage rate for the locality of the project, the ratio and wage rate specified in the contractor's registered program must be observed. ii Equal employment opportunity The use of apprentices and journeyworkers under this part must be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30. 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. Previous editions obsolete 6 Form HUD-4010, (10/2023) ref. Handbook 1344.1 Subcontracts. The contractor or subcontractor must insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1) through (11), along with the applicable wage determination(s) and such other clauses or contract modifications as the U.S. Department of Housing and Urban Development may by appropriate instructions require, and a clause requiring the subcontractors to include these clauses and wage determinations) in any lower tier subcontracts. The prime contractor is responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in this section. In the event of any violations of these clauses, the prime contractor and any subcontractor(s) responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss, due to any workers of lower -tier subcontractors, and may be subject to debarment, as appropriate. 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 the contracting agency, the U.S. Department of Labor, or the employees or their representatives. 10. Certification of eligibility. i. By entering into this contract, the contractor certifies that neither it 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 40 U.S.C. 3144(b) or 29 CFR 5.12(a). ii. No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of 40 U.S.C. 3144(b) or 29 CFR 5.12(a). iii. The penalty for making false statements is prescribed in the U.S. Code, Title 18 Crimes and Criminal Procedure, 18 U.S.C. 1001. 11 Anti -retaliation It is unlawful for any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for: i. Notifying any contractor of any conduct which the worker reasonably believes constitutes a violation of the DBA, Related Acts, or 29 CFR parts 1, 3, or 5; ii. Filing any complaint, initiating or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under the DBA, Related Acts, or 29 CFR parts 1, 3, or 5; iii. Cooperating in any investigation or other compliance action, or testifying in any proceeding under the DBA, Related Acts, or 29 CFR parts 1, 3, or 5; or iv. Informing any other person about their rights under the DBA, Related Acts, or 29 CFR parts 1, 3, or 5. B. Contract Work Hours and Safety Standards Act (CWHSSA) The Agency Head must cause or require the contracting officer to insert the following clauses set forth in 29 CFR 5.5(b)(1), (2), (3), (4), and (5) in full, or (for contracts covered by the Federal Acquisition Regulation) by reference, 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 must Previous editions obsolete 7 Form HUD-4010, (10/2023) ref. Handbook 1344.1 be inserted in addition to the clauses required by 29 CFR 5.5(a) or 4.6. As used in this paragraph, the terms "laborers and mechanics" include watchpersons 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. In the event of any violation of the clause set forth in 29 CFR 5.5(b)(1) the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages and interest from the date of the underpayment. In 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 watchpersons and guards, employed in violation of the clause set forth in 29 CFR 5.5(b)(1), in the sum of $31 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 29 CFR 5.5(b)(1). 3. Withholding for unpaid wages and liquidated damages i. Withholding process The U.S Department of Housing and Urban Development or the recipient of Federal assistance may, upon its own action, or must, upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor so much of the accrued payments or advances as may be considered necessary to satisfy the liabilities of the prime contractor or any subcontractor for any unpaid wages; monetary relief, including interest; and liquidated damages required by the clauses set forth in 29 CFR 5.5(b) on this contract, 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 that is held by the same prime contractor (as defined in 29 CFR 5.2). The necessary funds may be withheld from the contractor under this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract that is subject to the Contract Work Hours and Safety Standards Act and is held by the same prime contractor, regardless of whether the other contract was awarded or assisted by the same agency, and such funds may be used to satisfy the contractor liability for which the funds were withheld. Priority to withheld funds The Department has priority to funds withheld or to be withheld in accordance with 29 CFR 5.5(a)(2)(i) or (b)(3)(i), or both, over claims to those funds by: A. A contractor's surety(ies), including without limitation performance bond sureties and payment bond sureties; B. A contracting agency for its reprocurement costs; C. A trustee(s) (either a court -appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor, or a contractor's bankruptcy estate; D. A contractor's assignee(s); E. A contractor's successor(s); or F. A claim asserted under the Prompt Payment Act, 31 U.S.C. 3901-3907. 4. Subcontracts. The contractor or subcontractor must insert in any subcontracts the clauses set forth in 29 CFR 5.5(b)(1) through (5) and a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor is responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in 29 CFR 5.5(b)(1) through (5). In the event of any violations of these clauses, the prime contractor and any subcontractor(s) responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss, Previous editions obsolete 8 Form HUD-4010, (10/2023) ref. Handbook 1344.1 due to any workers of lower -tier subcontractors, and associated liquidated damages and may be subject to debarment, as appropriate. Anti -retaliation It is unlawful for any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for: i. Notifying any contractor of any conduct which the worker reasonably believes constitutes a violation of the Contract Work Hours and Safety Standards Act (CWHSSA) or its implementing regulations in 29 CFR part 5; ii. Filing any complaint, initiating or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under CWHSSA or 29 CFR part 5; iii. Cooperating in any investigation or other compliance action, or testifying in any proceeding under CWHSSA or 29 CFR part 5; or iv. Informing any other person about their rights under CWHSSA or 29 CFR part 5. C. CWHSSA required records clause In addition to the clauses contained in 29 CFR 5.5(b), in any contract subject only to the Contract Work Hours and Safety Standards Act and not to any of the other laws referenced by 29 CFR 5.1, the Agency Head must cause or require the contracting officer to insert a clause requiring that the contractor or subcontractor must maintain regular payrolls and other basic records during the course of the work and must preserve them for a period of 3 years after all the work on the prime contract is completed for all laborers and mechanics, including guards and watchpersons, working on the contract. Such records must contain the name; last known address, telephone number, and email address; and social security number of each such worker; each worker's correct classification(s) of work actually performed; hourly rates of wages paid; daily and weekly number of hours actually worked; deductions made and actual wages paid. Further, the Agency Head must cause or require the contracting officer to insert in any such contract a clause providing that the records to be maintained under this paragraph must be made available by the contractor or subcontractor for inspection, copying, or transcription by authorized representatives of the (write the name of agency) and the Department of Labor, and the contractor or subcontractor will permit such representatives to interview workers during working hours on the job. D. Incorporation of contract clauses and wage determinations by reference Although agencies are required to insert the contract clauses set forth in this section, along with appropriate wage determinations, in full into covered contracts, and contractors and subcontractors are required to insert them in any lower -tier subcontracts, the incorporation by reference of the required contract clauses and appropriate wage determinations will be given the same force and effect as if they were inserted in full text. E. Incorporation by operation of law The contract clauses set forth in this section (or their equivalent under the Federal Acquisition Regulation), along with the correct wage determinations, will be considered to be a part of every prime contract required by the applicable statutes referenced by 29 CFR 5.1 to include such clauses, and will be effective by operation of law, whether or not they are included or incorporated by reference into such contract, unless the Administrator grants a variance, tolerance, or exemption from the application of this paragraph. Where the clauses and applicable wage determinations are effective by operation of law under this paragraph, the prime contractor must be compensated for any resulting increase in wages in accordance with applicable law. Previous editions obsolete 9 Form HUD-4010, (10/2023) ref. Handbook 1344.1 F. HEALTH AND SAFETY The provisions of this paragraph (F) are applicable where the amount of the prime contract exceeds $100,000. 1. No laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous to his or her health and safety, as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation. 2. The contractor shall comply with all regulations issued by the Secretary of Labor pursuant to 29 CFR Part 1926 and failure to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act, (Public Law 91-54, 83 Stat 96), 40 U.S.C. § 3701 et seq. 3. The contractor shall include the provisions of this paragraph in every subcontract, so that such provisions will be binding on each subcontractor. The contractor shall take such action with respect to any subcontractor as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions. Previous editions obsolete 10 Form HUD-4010, (10/2023) ref. Handbook 1344.1 EXHIBIT "I-1" ARPA SUBRECIPIENT CONTRACT Tesas Wesleyan University Public Utilities Relocation Page 41 of 41 •ILI 17 Midland St Cn , L' G i �J 12=L!Ij, L; I 'i� —E Vickery Blvd 11 ,r Q :p Ave A m �d-1 L_ r Y a y�G Ave B Q � L..J u 1 d Ir--np 9 = o L oQ= �° e 7 Dolytechnic High School osedale St William James 'r-1,0 ji-,JG'U Middle School Ave _C r� 'Fort Worth Police - Polytechnic Heiahts Neiahhorhood Center — ,-.'f7 n rl�-j Avenue t Li - ❑ C1 0 ❑ a E3 C, < AA< nr❑G� ❑ ��� ❑li II�JLi JI11,�1 J LJ0CI0CQ 6c3-- ❑ E ro rp dCEO 0 Ave Hm TOO CD J � ❑o 0 0 ❑ qq ,�p r�dd70Qod� 1f�❑ CJL�[jbC7[ Ave m �I I� � `FLU Ave A CFO- 7j ^^ - n ri� U �e =i m M Texas Wesleyan University ,, Ave ,51 Avenue Ball -Tandy jLJ Triangle LJ 21 -L J J jj - �r C'EI ° 0,F-1[ E a ��q❑fl� � -- C TU � � II<10 11 r7 1r13 r7 sP° r- p �00D n t3 pLa 0IJ 200 El� 0 a❑ a 0 ❑ ° ❑ 0 L I ❑ c Q Ord 0Lu } 0 o ❑ O❑ 7 ❑Q ❑ 0 � ❑0 aaa��❑ �aQ El a� C9 C C7 0 o ❑ a o •G l �j� ❑ o ❑ a 3� Oo ❑ 013 Or ❑O ❑ v 7 D ❑ a I sri Ave J N `y_ i I ml�rti rtiri nr~ r, r� rl r, I I r—I r vr1 I In i L n nr-I, � ❑1 4 Q I r-I I KFM ENGINEERING B DESIGN 3501 OLYMPUS BLVD STE 100 DALLAS, TX 75019 469.899.0536 WWW.KFM-LLC.COM TITLE VICINITY MAP MAPSCO NO. 078K CITY PROJECT NO. 104158 PROJECT CLIENT 0 205 410 ft N 1 in = 400 ft TBPE: F-20821 TWU ATHLETIC COMPLEX FORT WORTH, TEXAS TEXAS WESLEYAN PROJECT NUMBER: SHEET: 010031001 JULY 08, 2022 1 OF X City of Fort Worth, Texas Mayor and Council Communication DATE: 09/27/22 M&C FILE NUMBER: M&C 22-0791 LOG NAME: 17TEXAS WESLEYAN UNIVERSITY SUBJECT (CD 8) Authorize the Execution of a Contract with Texas Wesleyan University in an Amount up to $200,000.00 to Relocate Public Utilities in Order to Start Construction on a New Athletic Stadium RECOMMENDATION: It is recommended that the City Council authorize the Execution of a Contract with Texas Wesleyan University in an Amount up to $200,000.00 to relocate public utilities under the streets in the 2900 block of both Avenue D and Avenue E on their campus in order to begin construction on a new $16.375 million athletic stadium. 11 &10111*4103 kqF Texas Wesleyan University has begun planning for the construction of a new $16,375,000.00 athletic stadium on their campus. In order to proceed, they will need to move public utilities under the streets in the 2900 block of both Avenue D and Avenue E. The athletic stadium will be a 3,000-seat facility for football, soccer, and track and field to be used by Texas Wesleyan University, FWISD, and various community soccer leagues. This high level of community -wide use will drive crowds to the Poly Heights neighborhood and support continued economic revitalization for the area. Phase 1 of the stadium construction will include public utility relocation under the city streets in the 2900 block of Avenue D and Avenue E, so that roadway removal and earthwork can be completed before installing the artificial turf field. The estimated cost of public utility relocation is $200,000.00 and the entire cost of the phase one of construction is in excess of $2,000,000.00. During the past 10 years, Texas Wesleyan University has invested more than $50,000,000.00 in campus and neighborhood enhancements, including the acquisition and renovation of properties along two city blocks on E. Rosedale directly adjacent to the campus as well as construction of the United Methodist Church Central Texas Conference office building. The University is currently in partnership with a private developer to build a new 100 bed $10.0 million student apartment complex on E. Rosedale with a target completion date of summer 2022. The new athletic stadium will be the next step in the continued economic revitalization of the Poly Heights urban village. The estimated start of construction for Phase I of the stadium project is September 2022 with an estimated completion date of September 2023. American Rescue Plan Act Funding for this project is being authorized by City Council through Mayor and Council Communication 13ARPA AMERICAN RESCUE PLAN ACT PROJECT ALLOCATIONS on the September 27, 2022 agenda. A Form 1295 is not required because: This contract will be with a governmental entity, state agency or public institution of higher education: Texas Wesleyan University FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations, funds are available in the current operating budget, as appropriated, of the Grants Operating Federal Fund. The Economic Development Department shall be responsible for ensuring that only expenditures allowable under the American Recovery Plan Act are charged to this funding source. Submitted for Citv Manaaer's Office by Oriainatina Business Unit Head Additional Information Contact: Expedited William Johnson 5806 Robert Sturns 2663 Robert Sturns 2663