Regency Apartments Project Number: 12019 Compliance Requirements September 2012

1. Regency Apartments Project Number: 12019 Compliance Requirements September 2012

2. Overview Components of Compliance • Important Terms • Davis Bacon • Certified Payroll (WH-347) • Requesting an Additional Wage Classification • Daily Sign-In Sheets • City of Cleveland Reporting • OEO/Fannie Lewis • Section 3 • Project Requirements • Critical Items • Marous Brothers Construction Contact Information

3. Important Contractual ($) Terms: • MBE: Minority Business Enterprise • FBE: Female Business Enterprise • CSB:Cleveland Small Business • Acertified Section 3 Business is one or more of the following: • 51% or more owned by a Section 3 resident OR • At least 30% of employees need to be Section 3 residents within 3 years of being employed OR • Commit to subcontracting 25% of total dollar award to Section 3 Businesses

4. Important Workforce (hours) Terms: • Minority • Female • Section 3 Resident: A low-income individual • Low-Income: person whose permanent residence is in the City of Cleveland and their total household income last year was not greater than 80% of the median income for the area based on the number of persons in their family (refer to Section 3 income verification form) • Residency: Individuals living in The City of Cleveland • Fannie Lewis Low Income: Very low income person that lives in Cleveland (income guideline is lower than Section 3)

5. Davis-BaconPrevailing Wage (Certified Payroll) • Required due to project funding sources. • Requires that Federal rates for the specific project be paid in accordance to an assigned wage decision, or appropriate union scale, whichever rate is higher. • Employees may not be 1099, unless they are a certified independent company. • Requires that a Certified Payroll Report (WH-347) be completed each week along with a Daily Sign-In Sheet attached. • Please ensure that the Daily Sign-In Sheets match the corresponding Certified Payroll. The hours listed on each will be compared. • If your company currently uses a custom payroll report it can be used as long as it includes all required information. Certified Payrolls & Daily Sign-In Sheets get submitted weekly

6. Example Wage Decision: Wage decision number. Date of wage decision. Modification # Base Wage rate Fringe rate Classification Rate paid to employees must be greater than or equal to Rates + Fringes.

7. Requesting Additional Wage Classifications • Some wage decisions do not include all the required classifications for the specific project. • When your company’s work classification is not listed, you will need to fill out a Department of Labor Additional Wage Classification request. • The process of getting an additional classification approved by the Department of Labor can take about 4 to 6 weeks. • No one is exempt from following Prevailing Wage. This is a one time form that only gets filled out if needed.

8. Requesting an Additional Wage Classification Keep this information filled in. Date Completed

9. Requesting an Additional Wage Classification Project information. Enter Project address: 1560 Ansel Road Cleveland, OH 44106 Work classification being requested. Suggested wage rate. Information regarding the requested classification. Suggested Wage Rate Return Form to Marous Brothers Construction when completed.

10. Payroll Authorization – City of Cleveland Regency Apartments Actual Project address: 1560 Ansel Rd. Cleveland, OH 44106 Name of person signing payrolls. Name of your company. Address of your company. If you have multiple Payroll Officers you must complete additional forms. This form only needs to be completed one time for each authorized signer. Name of your company. This portion must be signed by the owner of the company in blue ink.

11. Certified Payroll: WH-347 Contractor/Subcontractor: your company’s name and check appropriate box. Address: Your company’s address. Project or Contract No: 12019 Payroll Number: Week #1 is your company’s first week on site. Please mark this initial. Mark the last week on site as final. Project Name & Location: Regency Apartments Cleveland, OH Week Ending: This should be the last day pay period week. Pay weeks should be Sunday through Saturday. If you are not on site you still must turn in a “No Work Performed” payroll. Payrolls need to be submitted WEEKLY until “Final” is submitted.

12. Certified Payroll: WH-347 (3) Work Classifications: Complete work classification (Ex: Carpenter JRNY, Carpenter App, etc). Be certain to consult project specific wage decision (4) Day and Date: Weeks start on Sunday end up Saturday no matter what your pay date is. (7) Gross Amount Earned: The top portion is for the gross amount earned on this specific project. The bottom portion is the gross amount earned from all projects this week. (1) Name, Address, & Social Security Number of Employee: Employee's full name & last 4 digits of SS# must be shown on each weekly payroll submitted. Employees full address (including zip) must be listed. Also include race & gender (ex: C/M) (6) Rate of Pay: Where fringe benefits are paid to approved plans, funds, or programs, you will only need to list the base rate paid. Where fringes are paid in cash, wage must match the base rate and fringe rate being paid total. O = Overtime S = Straight time

13. Certified Payroll (WH-347) Name of person who signs your company’s payrolls. Fill in the proper information for your company and the specific project. Child support, Vacation, Garnishments get listed here. (4A) Check this box if the employees benefits are paid into a union or a bona fide plan.

14. Certified Payroll: WH-347 (4b) Check this box if fringes are paid in cash, and not to a union or approved plan. Owner, Non Working Admin, and Supervisor who are exempt Name and signature of person reviewing this payroll. Must sign in blue ink

15. Enter Project Name and Address: Regency Apartments 1560 Ansel Rd. Cleveland, OH 44106 Daily Sign-In Sheets Marous Brothers Construction, Inc. Your Company name Week Ending Date Enter correctdate Please ensure these 3 fields are accurately completed for each employee daily Each employee must sign in and out daily.

16. City of Cleveland Office of Equal Opportunity (OEO)/Fannie Lewis • There are two components to OEO • The contractual ($) portion consists of: • 15% of contract values be set aside for MBE certified companies. • 7% of contracts be set aside for FBE certified companies. • 8% CSB contracts • The workforce (hours) portion consists of: • 16.1% Minority participation • 6.9% Female participation • 20% of hours being performed by a City of Cleveland resident. • 4% of the 20% should be very low income residents. The OEO workbook is required electronically in Excel as well as paper originals signed in blue ink. All of the paperwork is in one spreadsheet with 4 SEPARATE WORKSHEETS.

17. OEO Reporting Summary and Affidavit Name of Project Will pull from the Invoice and Payment Summary (Tab 2) Name of your Company Will pull from the Invoice and Payment Summary (Tab 2) Will pull from the Invoice and Payment Summary (Tab 2) Will pull from the Invoice and Payment Summary (Tab 2) Will populate from the Worker Hour Reporting Form. (Tab 3) This is a monthly form.

18. OEO Reporting Summary and Affidavit Fill in the information for the person reviewing this form. Must be notarized or will not be accepted. This is a monthly form.

19. OEO Invoice and Payment Summary Fill in the project name. Fill in the name of your company. Fill in the amount of the listed contract awards. Fill in the proper information regarding your company’s contract. This is a monthly form.

20. OEO Invoice and Payment Summary Keep the proper certifications listed. Fill in the subcontractor’s company name. Fill in the actual amount of the check. Type out the invoice number. Fill in the date the check was issued. Fill in the type of work that the company performs. Fill in the amount of money that was paid. Fill in the check number. Need to turn in cancelled checks for all subs and suppliers. This is a monthly form.

21. Resident Worker Hour Report Will populate from the data you enter below. Will populate from the data you enter below. Your company’s name Employee’s Race “x” if employee is a low income individual. Employee’s last name Employee’s first name Employee’s Gender “x” if employee is a Cleveland resident Last 4 digits of SSN This is a monthly form.

22. Resident Worker Hour Report Week ending dates Will populate from the data you enter to the right. . Hours by week ending dates. This is a monthly form.

23. OEO Contact Information Fill out the proper information for the individual who should be contacted regarding this paperwork for this project. This is a one time form due the first month your company is on site.

24. Fannie Lewis Income Verification Employer needs to fill out this information Employer needs to fill out this information Must check off appropriate box. Must fill in accordingly.

25. Fannie Lewis Income Verification Employee needs to fill out this information You must provide one of the documents listed here in addition to the supporting documentation below. Please check which supporting document you have attached Employee Signs Employer Signs

26. Section 3 • The purpose of Section 3 is to ensure that employment and other economic opportunities created by HUD assistance to construction and rehabilitation is directed to low-income persons that reside in Cleveland. • Only subcontractors who’s contract value is $100,000 or greater need to complete Section 3 forms. • There are two components to Section 3. • The contractual ($) portion consists of: • At least 10% of total “Construction” awards must be given to Section 3 Businesses • At least 3% of total “Non-Construction” awards must be given to Section 3 Businesses • The workforce (hours) portion consists of: • 30% of new hires on this project must be Cleveland Section 3 Low Income individuals.

27. Section 3 Core Employee List Fill in this box with your company’s information. Fill in job title of employee. Employee hire date. Check the box if a Section 3 employee. Fill in employee name. List ALL employees employed by your company, not just the ones that will work on this project. This is a one time form submitted before work on site begins.

28. Section 3 Clause Fill out information pertaining to the project this paperwork applies to. Check off which quarter this paperwork applies to. Document only needed one time, with your Core Employee List.

29. Section 3 Clause Have this portion signed by the owner of the company in blue ink. Read and acknowledge all information on the Section 3 Clause form before signing.

30. Section 3 Core Construction and Non-Construction Contract Awards Form Fill in the year Fill in all fields listed and check the correct quarter. This form is due quarterly. Two hard copies are to be mailed and the Excel file must be emailed.

31. Section 3 Core Construction and Non-Construction Contract Awards Form Sub or Suppliers zip code. Sub or Suppliers city. Subs = construction Suppliers = non-construction Sub or Suppliers address. Sub or Suppliers name. Sub or Suppliers state. This form is due quarterly. Two hard copies are to be mailed and the Excel file must be emailed.

32. Section 3 Core Construction and Non-Construction Contract Awards Form Sub or Suppliers contract amount M = Male Owned F = Female Owned Sub or Suppliers tax ID # or individual SS# Fill in “yes” or “no” to answer if business is certified. Fill in Ethnicity of the Business Owner. Sub or Suppliers contract amount if they are Section 3 Certified This form is due quarterly. Two hard copies are to be mailed and the Excel file must be emailed.

33. Section 3 Workforce Utilization Fill out information pertaining to the project this paperwork applies to. Check off which quarter this paperwork applies to. Write in Correct Year This form is due quarterly. Two copies are to mailed.

34. Section 3 Workforce Utilization Fill in the job classification of the employee listed. Fill in the name and address of any new employee hired in the quarter you are reporting for. Only new hires who are not on your Core Employee List should be listed here. Fill in the hire date for the employee listed. Check the box if the employee is a Sec 3 resident. If you check this box be sure to include a Resident Income Verification for the employee. This form is due quarterly. Two copies are to be mailed.

35. Section 3 Resident Income Verification Be sure to fill out company information completely. Check the box that applies to the employees classification Check the box the applies to the employees household residents and income amount for the previous year this form is being filled out. Be sure to fill out employee information completely. Make sure the employee signs! This form is due as needed and should be attached to the Section 3 Workforce report.

36. Job Requirements • Contractual • A percentage of the total contract value must be spent as follows: • 15% MBE • 7% FBE • 8% CSB • 10% Construction & 3% Non – Construction Section 3 Awards • * Must be on City of Cleveland certified list. • Workforce • A percentage of project hours worked must be as follows: • 16.1% Minority • 6.9% Female • 30% of new hires must be Section 3 • 20% Cleveland residents • 4% of the Cleveland residents must be low income

37. Critical Points: • In order to receive payments we must first receive the following information: • Core Employee List • Section 3 Clause & Narrative • Form A Core Construction & Non-Construction Awards • Payroll Authorization • Subcontractor List • All Certified Payroll must be completely filled out and submitted with signatures in BLUE ink. • Must turn in 4 ORIGINALS of Certified Payroll weekly w/Daily Sign-In sheets attached. • Must be current with all monthly and quarterly reporting. • Missing paperwork = NO MONEY!!!!! NOTE: MAROUS BROTHERS CONSTRUCTION IS REQUIRED TO SUBMIT ALL COMPLIANCE PAPERWORK WITH EACH PAY APPLICATION. IF ANY INFORMATION IS MISSING, OUR PAY IS WITHELD, AND CONSEQUENTLY YOUR PAY IS WITHELD.

38. Regency Apartments

39. Subcontractor Information Sheet Enter Project Name Enter person responsible for completing any Compliance paperwork. Please be sure to complete all fields. Enter any Certifications your 2nd Tier holds by any Entity. Example City MBE, CMHA FBE. Enter the date their Certification expires PLEASE ATTACH A COPY OF CERTIFICATE

40. Subcontractor/Supplier Information Sheet Enter company 2nd Tier Subcontractor or Supplier is contracted to. Enter Company Name of any 2nd Tier Subcontractor or Supplier Enter person responsible for completing any Compliance paperwork. Please be sure to complete all fields. Enter the date your Certification expires Enter any Certifications your company holds by any Entity. Example City MBE, CMHA FBE. PLEASE ATTACH A COPY OF CERTIFICATE

41. Marous Contact Information • Tina Brenenstuhl • Phone: 440-391-5353 • Email: tbrenenstuhl@marousbrothers.com • Diana Correa • Phone: 440-391-5427 • Email: dcorrea@marousbrothers.com • Melissa McCollister • Phone: 440-391-5520 • Email: mmccollister@marousbrothers.com • Ed Hallis • Phone: 440-391-5527 • Email: ehallis@marousbrothers.com • Fax Number: 440-951-4580 • Mailing Address: Marous Brothers Construction Attn: Compliance Department 1702 Joseph Lloyd Pkwy Willoughby Oh, 44094