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SR-414-001 (2) , ~ .. 00-'1-(.. .. ." ''''- ; Lj/Lj/ot?/ , , FROM: SOBJECT: Recommendation to A.dopt Resolutions Establishing the Downtown Redevelopment Project Low and Moderate Income Housing Trust Fund and to Allocate $3~g,9S9 into the Downtown Redevelopment Project Housing Trust Fund~ to Approve Program Guidelines IJnd Allocation of Funds; and to Authorize the Executive Director to Execute the Documents Introduction This report transmits proposed resolutions to establlsh the Downtown Redevelopment Project [.ow to Moderate Income Houslng Trust Fund. These actlons are necessary to expend the funds approprIated oy the Agency for thLs purpose in the Flscal Year 1983-84 budget. As Redev~opment Law requlres that the Clty Councll concur wlth the Agency's flndlngs that the expendlture of funds outslde of the project area 101111 be of beneflt to the proJect, a CounclL resolutlon to thIS effect also accompanles thIS report. In addltlon to establIshIng the legal baSIS for the creatIon of the Trust fund, thIS report recommends that the Agency devote thIS Inltlal allocatlon to the fund for slte acqulsl~lon and rehabIlItatIon actlvltles WhlCh 101111 preserve and expand the supply of nouslng affordable to low and ~oderate Income households, WhICh 101111 serve the ProJect area workforce a,d thereby be,efIt the Downtown Redevelopment ?roJect. The programmatIC mechanIsm recommended for ~gency approval lS a~ln to that approved by the CIty CO'.lncll for the Plca ~elghborhoad re Pr- ~ D[C 1 J 138] , , ! ~ :~ J, .... J. /",,--~., ~ j' I ! - 2 '~I <c_ ~ I; i ~i i i I n~~ \//' (. ..J, ~ , o ~. U "jj. 4. '-.. )~:-;;::- .. . ~. ------=- -~ ,/ i:" , f cp K AVENUE t/ "" -' I, ___- = TF,,;~~SFER PARCELS / -..,(;",' , --_._-~--_._-~~--- ~--------~- ----------------. ,,/1::':" -:~-..---.-~~ ; ~ . -: ( ,/ ,... ~ ~ .. t i' :..: ~ =. . I I . 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If. _'F- <<..c~tptlon of' financial/budg.tary impaat. aDd. .ari.. of recolI..ndation. lor Agency and Councll acUon to utablhh the Downtown aedevelop..nt proj.ct Low to Moderat. Incom. Hou.ing Trult rund and to implement a City-wid. Houling Acquiaition and .. Rehabilitation Program. L) Establishment of the Dow~town Redevelopment Project Housins Trust pund The legal authority for redevelopment agencies to assist 1n the proviSion of housing for households of low to moderate income is contained in Health and Safety Code Section 33334.2. State Law enables the Agency to undertake or fund a variety of actlvlties, lncluding the provlslon of SubsldIes, land, slte lmprovements, construction, rehabllltat10n, or fInancing for the benefit of low to moderate lncome households so long as the Agency determlnes that these actions wlll be of benefIt to the ?roJect area. ~llocatIons :0 support the provlsion of houslng for househoids of modest means are mandatory fo: redevelopment plans adopted or amended subsequent to January 1, 1977. For pla~s amended or adopted prior to that da~e, as 1S the C3se wlth the Downtow, Redevelopment ProJect, the Agency may Joluntarlly establIsh lndebtedness for the development of houslng opportunltles for targeted households upon ~ resolut.on of the Agency that such use Will be of benef1t to the proJect area. To p~ovlde ~mpIrlcal support for a flnding that lncreaslng and lmprovlng tne comrnunlty's supply of low and moderate Income hOUSIng at affordable cost ~ould oe of benefIt to the Downtowr. Redevelopment P~oJecc:, the fIrm oE Ham.lton, RabInOWItz and ."'. -..." . t.' f~', \ ~ ~ ?t: ' ".i~.eng.otd to inve.tlljllte th* l~pact ~f hOudn~~)..ik~t'i . o. j ~ condition. upon the viability of the project art.. Santa Konicl Place, locltad in the Downtown Redevelopmant Project. Ire., provide. employ.ent for Ipproximately 1,81S people. The eonsultant was .sked to researeh the impacts of housing market eonditions upon the future accessibility of the labor force. The consultant's investigations and conclusions, attached as Exhibit A suggest that housing market trends do not portend the provIsion of sufficient housing resources for those employed in the retail sales sector in that Santa Monica and in other proximate locations. As the consultant's report confirms, prevaillng wages in retaIl employment are relatively low, such that hlgh commutlng costs caused by the lack of available and affordable houslng can ralse employers' salary and/or recrult1ng costs and thereby affect compet1t1ve advantage. Slnce It lS estlmated that appraxlmately one half of all retaIl Jobs turn-over annually, the abIlIty to recrult lS crltlcal. As the provlslon of hous1ng affordable to low and moderate lncome households WIll prov1de houslng resources for the workforce employed ln the Downtown ProJect Area, the Agency's fIndIng of oeneflt can be substantlated. The attached resolutlon entitled "A Resolut1on of the Redevelopment Agency of the CIty of Santa Monlca Establ1shlng the Downtown Redeveloment ProJect ~ow and Moderate Income Hous1ng Trust Fund" 1ncludes thlS flndlng 1n compllance wlth appl1cable state law. 4 ,'#Ii. . . ,t ~ :~-.. . " ~~ I " "-"/f 1.\ .....; ... 8eetlon i~33..2 al.o requir.. that the le;illative body find that .uppo~t !o~ the provilion of affordable houllng will be of benefit to the project are. when Iuch hauling il to be provided off-site. Since Santa Honica Place OCCUpiel the entin project area. effort. to addre.. the housing needs of the labor force must necessarily occur off-site. A r.solution proposed for adoption by the City Council including necessary findings is also attached for Council action. The final significant requirement elaborated 1n the Health and safety Code is that the Agency must appropr1ate funds for hous1ng act1vit1es into a separate account to be maintained untIl the appropriatIon IS exhausted. Any Interest earned must be used to prOVIde affordable hOUSIng, USIng any of the mechanIsms or programs (SubSIdIes, constructIon, rehabIlItatIon, etc.) deScr1bed above. SInce the Agency is not reqUIred to ~ndertake hOUSIng actIVItIes in support of the proJect area, the Agency may approprIate any amount It deSIres. The attached resolutIon, 1"1 conformance w1th t~e adopted budget. allocates $399.999 Into the Do....ntown Redevelopment ProJect Low and Moderate Income HOUSIng Trust Fund for tne CItY-WIde HOUSIng AcqUISItIon and RehabIlItatIon Program. and does not preclude the Agencl from makIng addItIonal approprIatIOns at some future date for rent SubSIdIes. new constructIon. or any other program ..ehlcle selected for fundlng. 5 if approved by the A;ency, will re.ult in the proviaioD of lunda lor bouaing Acquiaition and rehabilitation activitie.. This .ection of the report pr...nt. guidelin.. and procedure. to implement the program for Agency approval. The procedures and quidelines for the City-wide Housing Acquisition and Rehabilitation Program, attached as Exhibit B, are almost identical to those adopted by the City Counci 1 for the CDBG funded Pico Neighborhood Housing Trust Fund and conform to the housing programs agenda conceptually approved by the Councll on September 2", 19S3. The appllcatlon and approval procedures, underwrztlng crlterla and other aspects of program operatlon are almost ldentlcal to those specifled ln prlor reports, except that some requlrements have been modlfled to comply wlth state rather than federal law. i:or example, references to Communl ty Development Block Grant (CDBG) regulations have been replaced wlth the requlrements contalned In SectIon 33""" et. seg. of the Government Code, WhlCh are the portlons of the Health and Safety Code appllcable to redevelopment actlvltles and to the expendlture of Incremental ~ax revenues. The most SIgnIfIcant ~hange In the program from a poliCY perspectl 'Ie, 15 that low to moderate lncome households are deflned differently In state and federal legislation. Under state law, low and moderate Income households a:::e those ha'lIng lncomes up to l2~/% of the area medlan Income whereas for federal 6 .. 'I< ,r~gr~'., th1' ~mp.~'b.le it9~i...h .n. OnlSer ted.rlal, h"~'!lft r of tho.. dlr.ct17 ben.eitting from fund. provide4 mu.t be inco.. eligible, and the income. of the remaining beneficiaries need not . j . reJ. , . be scrutinized. Onder redevlopment lav, housing project. developed off-site muat serve low and moderate income households (i.e., households having incomes of up to 129\ of the area median income) over the long term. According to Agency Counsel, the law firm of Weiser Kane Ballmer and Berkman, not all residents at the time of acquisition must qualify based on income, but the percentage of eligIbles must be predominant. Agency Counsel also adVIses that all unIts should be affordable to elIgible households, and upon vacancy be made avaIlable and rented to such households. To reflect these factors, the attached program gUIdelines reqUIre that 85% of the reSIdents In place at the tIme of acqUISItIon shall be Income elIgIble and that all vacant unIts shall be ::ented to qualIfYIng households. The gUIdelInes addItIonally speCIfy that post acqUISItIon rents for all unIts be affordable to elIgIble households, and that a mInImum of one thIrd of the unIts be rented to households haVIng Incomes less than or equal tv 8\3% of the a::ea medIan at an affordable prIce. l~come lImIts and affordable rents are lndlcated In gxhIblt D to the attached CItY-WIde HOUSing ~cqulsltIon and RehaOI11tatlon Program GUIdelInes. Another ObvlOUS deVIatIon from the Plea NeIghborhood HOUSIng Trust fund Program ;s that funds from thls "rogram ;:3n be ex:;>ended to acqUIre and Improve i'roperty any where In the CIty. The broader boundarIes of program operatlon reflect the fact that 7 I' ....... . ~~. 1"-9- ~~:~.~ ...., ., -i ~\ ~vnto_t R;itfelop..nt"z~f.oE labor ~atk.t i: Clt~~li~e l...t and ~h.~ there Ire ~~for~ibl. houainq ZllourCl1 to at be .Y pr...rve~ an~ allocatad to houlahold. of mod.,t .aan. in all of tha City'. n.lghborhoodl. Availabl. data indicate. that the high..t incidence of rehabilitation need. and Low income. occur in the Pi co Neighborhood, Downtown, and in Southeaat Ocean Park, such that program activities are most Likely to occur in these arellS. The projected cllpacity of the City-Wide Acqui5ition and RehabilItation program WIll be the acquIsition and rehabilitation of approXImately 3~ unIts Wh1Ch WILL serve the workforce of the Downtown Redevelopment Project and other low to moderate income persons and households. The program WILL leverage more than 5900,000 In prIvate fInanCIng. 3) AllocatIon of Program Funds ~he types of allocatIons recommended here parallel those approved for the PlCO NeIghborhoOd HOUSIng Trust fund, except that for Incremental staffIng costs recogn1zed WIthIn the program rather than funded separately. The purpose and amount of each allocat1on 1S as follows: o Earnest Money/DepOSIts: S15,000 These funds would be prOVIded to a non-prof1t developer 1n a l~mp sum to oe depos1ted 1nto an I,terest bear:ng account and ~sed to lOltIate tr3nsactIons. In rh1s case, Community CorporatIon of Santa Mon1ca, a non-profIt development corporation, IS the recommended recelplent. 8 << c' t, ~' -t._ . . fb' tit o pr.4e~.lop..nt rund.. f15,.., ,. .. Tb. pre4avalop.ant .at ..ide would ba u..d to fund n.c....ry .' , . . .. pr.da.elop.ent .xpan... includin9 architectural f..., ~ inspections, and other servic,. which cannot be obtained on a continqant basia. Predevelopmant Funds will be advanced upon approval of a preliminary application as described in the attached gUIdelines. These funds will be encorporated into the long term program loan upon closing. o Long Term Deferred Payment Subordinate Loans: $247,190 These funds will be provided at the close of escrow to make up the difference between total development costs and the debt serV1ce capacity of the project following the submisslon of a permanent lender's commi tment. o Staff Support for Communlty Corporat1on: 522,900 AS Clty and Agency support for houslng actlvlt1es expands, both 1n dollar amount and compleK1ty, correspond1ng support must be prov1ded for staff to 1mplement programs. Therefore a grant 1n the amount of 522,900 to Communlty CorporatIon of Santa MonIca (CCSM) 1S recommended for Agency approval. ThIS recommendat1on 1S more thoroughly d1scussed 1n the following sectlon. 9 ~ to un~.rtak. houlinq ~.v.lopm.nt activiti.. puriuant to the City-Wid. Housing Acquisition and Rehabilitation Program for the remainder of the fiscal y.ar. This recommendation is basad upon a technical aSSessment of the Corporation's skill and capacity and the need for implementing institutions to achieve sufficient scale to operate and manage projects in an efficient manner. Attached for Agency approval is a standard grantee contract modified to reflect appropriate provisions of state law applicable to redevelopment agency actIvItIes. Standard federal and local requirements regardIng grants management, equal employment opportunIty, polItical activities etc., have been retaIned. The attached Agreement would provIde CommunIty Corporatlon WIth 522,909 for operatlng expenses and $15,09" for deposlts to InItIate transactlons.* The allocatIon for operatIng expenses 15 almost e~cluslvely for staff and frInge benefIts, although a small amount IS requested for the development of accountlng systems necessary for ongoIng proJect management. The proposed budget WIll Increase pOSItIons currently funded on a pa=t t:me basls to full tlme 15 such that sufflC1ent personnel WIll be avaIlable to carry out the CIty WIde HOUSIng ;cqulsltlon and RehabILItatIon program. *The proposed operatIng budget lnc1~des PICA expenses for all employees, regardless of fundIng source. Please refer to a report prepared by the CommunIty and NeIghborhood SerVIces DIVISIon dated December 13, 1983, for a thorough explanatIon of changes 1n federal law regardIng non-profIt organllatlons. 10 {'",'. ....' ~ ......: ,-r :i.t' j, T :~ . _~i ,,.! " ~ ,. ,.,Q ,11, ~ ,'Ii.:' Ii::.. - required to:e.;.~11.~~~ ;:L.~t;~.~;~; title of tb. td.Un9 a~ropd.tion .hown in .ccount nuaber..16- 211-263-126-661 wi 11 be changed to -Downtown Redevelopment Project Low and Hoderate Income Housing Trust Fund-. To comply with applicable law, the treasurer will treat this account as a fund, i.e., will separately account for any interest or investment earnings. To effect the implementation of the City Wide Housing Acquisition and Rehab1l1tation Program, funds will be transferred into new l1ne 1tems w1th1n the Downtown Redevelopment proJect Improvement Account Serles, and will account for the program components as summar1zed below: o Clty Wlde HOUSIng Acqulsltlon and Rehabllltatlon Program Deferred loans -- $247, HI9. o Clty Wlde HOUSIng AcqUISItIon and RehabIlItatIon Progra~ Predeveloprnent Account -- $15,009. o CIty Wlde HOUSIng AcqUISition and RehabllltatlonProgram CommunIty Corporation -- $37,909. :1 ite.. to reflect .ach approved program loan. COlllmunity ~.<:~ corporation will alao execute a note tor .arn..t money tunda .. advanced. Thi. action i. n..d.d to retlect this revolving account accurately In the Agency's recordll. Recommendation It is recommended that the Redevelopment Agency: 1. Approve the attached Resolutlon of the Redevelopment Agency of the City of Santa Monica Establishing the Downtown Redevelopment ProJect Low and Moderate Income Housing Trust Fund. 2. Approve the attached Resolutlon of the Redevelopment Agency of the Cay of Santa MonIca allocatlng S3rlHl,1'l1'l0 lnto the Downtown Redevelo?ment ProJ~ct Low and Moderate Income Houslng Trust Fund. 3. Approve the attached gUIdelInes for operatIon of the CIty-WIde HOUSIng AcqUISItIon and RehabllltatIon Progra~. 4. Approve the allocatIon of funds as set forth in tne ~udget/Financial Imoact section of this repor~. 5. Appro"e the attached Agreement by and between the Redevelopment Agency of the Clty of Santa MonIca and CommunIty Corpcr3t:on 0: Santa ~onIca and authorlze the Executlve DIrector to execute the document. 12 j <.w . r .,~ .:'f.1 . t "t .~. A" ~. ,~ , ., ~.~p~ov. tbl .tU'ched Ruolution of the C1t1 Council of the City "'" .,.L.~ "\.to.. " of Santa Monica Approving the !atabli.hment of the Downtown aedevelopment project Low and Hoderate Income Housing Trust rund and rlndlng. Prepared by: Mlndy Lelterman, Houslng Dlvlslon Department of ~ommunlty and EconomlC Development 13 I ." . : ~. /i.. ' r~. 0" ." " ", , . ~ ~ < ~, '(. , .' RI'1'UL ~ DIVJt.OPHD'l' EM SAN'l'A MONICAl ~ ~.I~IPAL HOaSING IHP~Cf . , Thi. revie., conducted for the Redevelop.ent Agency of the City of Santa Honica by Ha.ilton, aabinovitz . Szanton Inc., l. de.lined to generate information about the hou.ing impact of retail development, particularly of Santa Monica Place, on the City .nd to ...... the impact of curr.nt housing market condi- tions in the City on the future availability of a labor force to Santa Honica Place. As indicated below in the section profiling the nature of retail employment, the Place relies for its employees primarily on a low income labor force, more than half of which resides within the City limits. The retail industry does not draw sig- nificant numbers of its workers from among those who expect long term employment at a salary adequate for a household head. A large group of women and youths has emerged who will accept part-tlme retail work at the mlnimum wage, and they are generally the basis for the retall mall's use of labor. The Place is unu- sual in that more than the average number of Its employees are persons over the age of 55 and more than the average number of stores are local rather than chain stores. ^s Ind1cated below In the sectIon on the Santa Monlca Hous- Ing market, the CIty'S hous1ng market for affordable hOUSIng, In Wh1ch persons employed In the Place could reslde, IS extremely tIght. Existing trends suggest that wh1le the supply of low cost houslng is adequate to fulflll the needs of the eXIstIng low Income populat1on, 1t IS not currently occup1ed by thIS popula- tIon. Indeed, low and moderate income famllles are decllnlng In number In the CIty, suggestIng that they do not fare well 1n the competltlon for space. These two realItIes, when comblQed, mean that the prIvate hOUSIng market IS unlIkely to provlde sufflClent hOUSIng for those employed In the retail sector. Unless the Clty Increases the supply of houslng avallable to low Income workers, the Place IS lIkely to be requ1red to draw Its workforce f~om communItIes outSIde the CIty, wlth attendant hIgher costs for the Place to cover the 1ncreased cost of commutlng and Increases 1n traffIC, as well as aIr pollutIon and parklng pressures on the CIty It- self. An addItIonal problem could also be created for the Place by the attenuatlon of an avallable labor force. The maJor lImIts on its success today relate to Inadequate parkIng for customers In peak shopping perIods, a problem whIch IS exacerbated to the extent that employees must commute by car rather than bus to reach theIr Jobs and dIsplace consumer parkIng by so d01ng. :..., \ ~~! t...,... . t'. 'I ~' ~tOfne cSr!;tetaU ~loYiMnt ,.. 'I Vo profile of retail ..ploy... in lar;. .eal. .all. 1. avai- labl. nationally, nor doa. the place"hava .uch a deleriptlon of it"ll. therefore, a compolite profll. of the probable character of employe.. in .uch projects ha. be.n con.tructed through the aggregation of a variety of .ourea.. Thi. profile wa. then reviewe4 by the management of Santa Monica Place, who provided affirmation of major trend. and indication. of where the Place h.. .pecialized characteri.tic. that dlatingui.h it from other similar businesses in the nation as a whole. The sources of profiling information include: ~ Ian Alexander and John Dawson, "Employment in Retailing: A Case study of Employment in Suburban Shopping Centers," Geoforum, vol. 10, pp. 407-425, 1979. Barry Bluestone, Hanna, Kuhn and Moore, The Retail Revolu- tion: Market Transformation, Investment and Labor in the Modern De~artment Store (Boston: Auburn House, 1981). E. Lion, Shopping Centers (New York: John Wlley and Sons, 1976) . George Sternlleb and James Hughes, Shopp1n9 Centre USA (Rut- gers: UniverSIty Press, 1981). The Wh1te House and the PreSIdents Interagency Coordinating Councll, Federal Programs for Urban BUSiness, (Government Print- ing office, Washington DC: 1979). Any generalIzed portraIt of the retail labor force must start wlth the fact that retail workers are heaVily 1n part-tlme employment. ThlS trend toward part-time employment IS a recent one. Before the rise of the cl1scount chain, department and small retaIl stores employed a much higher proportIon of skilled full- time sales people. Since the 1960's, however, t~ere has been a steady movement toward part-time employment In the reta1l Industry. Seasonal labor prOVIdes for further fleXIbility In schedul- Ing the retailing workforce. On a natlona1 oaSIS, seasonalIty IS ~ow as pronounced In retaIling as In agrIcultural employment, with part-year workers beIng used to meet peak season demands. ~s a result of these two trends, only about one-third of retail employees work year round. The most limited schedules are concentrated among younger workers, w1th two-thirds of all those under age 25 employed for no more than three months dur1ng the year. In contrast, only about one-fIfth of the employees In the 25-34 age group work thiS lIttle, and only 15% of those over 35. It IS critical to the retail Industry to have a large wor...- force of thlS type avaIlable to It, SInce the turnover rate In retall employment IS staggerIng. RetaIl experIence gl,es ItS 2 , ~ ~~ Eaploy... ia the food-oriented sector of the retail ..11., inclu~ing the Place, have a profile very .i_Ilar to tho.e in the non-food retail store.. In general, aboat one-fifth of the work force Caae8 to retailing either with no work experience or as return... to the workforc. after an e.ployment hiatas. Another fifth com.. fro. jo~ in the pri.ary sector where employment i. declining -- IUch as durable manufacturing. Thr.e-fifth. com. from the .econdary .ector -- low vage .ervice industries and nondurable manufacturing. About. quarter of the workforce in retail store. come. from employment in food stores, restaurant., tavern. and bar. where the employment patt.rn is similar to that in branch.. of the retail trade. The moy..ent between food .tore. and department store. is particularly common for men. Sal.. clerks leave to become waiters, workers tn grocery stores to become sale. clerka. The very low employment tenure i. tolerable for the retail em- ployer only if the skill requirements for many jobs are small and, more important for Santa Honica's .ituataoo, a large work- force is immediately accessible. Since retailers as a group look at the prospect of replacioq up to half of their workforce per year, they must keep their costa for recruiti09 and training relatively low. To the extent that retail emploYDent becomes less attractive because commuting distances are increased by the unavailability of housing n&ar the place of work, and the concom- itant cost of transportation to the job rlse5, the industry is forced to pay more either to recrutt labor or for the actual labor itself. Given the.e general patterns, we have attempted to draw a statistical portrait of the probable characteristics of the Pl~ce workforce in somewhat ~ore detail. Faqure 1 on the following page illustrate. t~e age, lncome and hours worked for ~ale and female employees of larqe shopping centers or ~alls. Note that: (1) The probable distribution of employment by sex is 70\ female and 30\ male. Overall i~ lS estl~ated thAt 50\ of the jobs are full-time, 35\ part-time and 15' casual employment. The estimated distribution by sex and type of employment is shown below: 3 , ~ ~.~~> ,~'-'~ ~1>"'1~--- ~. . A.~""'~ ~. .~.._ Ji ~ ,. . ~__ ;J ., ~ 0\: '; - r- ~ - . .f'''' -.,6 ~... .;..- ."';;1 ~" -- ....r ~ '" L nOUU"l. IIM'ZOIIAL RZ'l'AIt. NORUORiCB CDJtIC'l'ERIS'l'ICSI 1.97' J.Oo 20 30 40 50 60 70 80 90 100 . . LESS '11M 2S 'l'O 35 3S '10 40 OJER 2S ms YRS a 1GB lR5 CE ICE 50 aIGE YRS p !: H A uss 'IW\N L: $3000 NNJAL 53000 TO 55000 NH1AL E (1978 OOUARS) (ll..ID. S5000 - ~ 70\ A.'H.N. . fUIL-'I'IloIE PARI'-TDE CAS- UAL YF.M JUJND SEASCNAL Ci\Sl.DU. n AM) PI' nNmPT YEAR IO.H) '-.. 25 YRS 25 TO 35 YRS 35 'IO 40 YRS 5~ M IESS nw ~ 1l!1IN A S3000 53000 - 55000 S5OO0 'I'O 515000 515000 L E FUIlrTIME PARl'-TL"tE bs 30' YEAR R::Um PI' " E"I' SE1\SCH\L PI' " Fl' C),SU1l.L YR PD. . , . . . . . T T 10 20 30 40 50 60 70 80 90 100 r...t. 70' rDl1-!~ 48' P.r~-!l.. 42 C..ual 10 . Pall-!I.. · 40 hour. per veek. About half the jobs in the av.ra9. ..11 are believed to be full-time. Hot. tbat indus- try .ourc.. In New England sugg.st that a. much a. 75\ of all depart..nt store ..ploye.. are now employed part-time. One large regionally based discount chain in New England indi- cated tbat only 15\ of its labor force vas employed on a full-time schedule. .. Part-time · More than 22.5 hours per week. l.s. than 40. About 35\ of the jobs in the average mall are part-time. Casual · Evenings, weekends. at about 10 hours per week. About 15\ of the jobs in the average mall are casual. (2) Employment nationally in retaiL stores is evenly dis- tributed among age group.. with. sli9htly larger proportion in the 35-50 age group. At Santa Honica PIaee there i. a larger than average elderly workforce compared to national patterns. Thus whereas nationally the workforce over aged 50 is estimated at about 10\. at Santa ~onica Place it may be twice that. ... ESTIMATEO RETAIL EMPLOYMENT. BY ACE Age Croup 18-25 26-35 36-50 Over 50 20' 30 30 20 eJI Two-third. of retal1 employment is in the sales category and 80' in the combined sales, clerical and manual categories. ESTIMATED RET~lL EMPLOYMENT, BY ~YPE Occupation: Hanaqement/Owner 14\ Sale. 60 Clerical 10 Unskllled Manual 6 Skilled Manual 4 Other 7 4 'n'.~~. ,-. . .. ~.('A.~.+.)tf~": '" " . .~, ..i..o".r : . ..iI'''C~ '. . ~ ",,' '. '~.~. ~~ A. .;t "to' .... ~ ~ < .1'......"" .,.t'~~rrr ~ "t - I. ....Ii .~ ""'~:!- '~..:f'j~ .~~'a'~~~4.i~~ ~,.'~~..~. ~. i.-.~ . .... C) .r"*~.o. ~~~cHf' '.'... :-!D~M . '. _ . if:: "1.~I1itl, tbMr.~' ft fof!ilIt 1::1..;"> - , . ' ,~ li~o14 .DCCIM. .t.~. of ~ . en d.,.Dl!* OQ tile la- ''" COM Of 'OtJiC .....r. of.th.b WUebO"lcS, OD which it is DOt ....e. . pO..lllla to ..wa. aD7 ....tl...tw.. '.OiiMofU, ..fa tile. ...101..... to be tata alone, 8O.t would c1e.d7 be eUglble for affordable boadlM)_ ES'rIKA'1'BD WAGB snD~U or RftAIL EKPLOntZn Average Wage: Entry Wages Hanag_ent: $4.50 per hour (Anoaal ..lary ~ 89,36D) 3.80 per hoar '18,000 - 21,000 per year. rigure 2 illustrate. the likely co..uting pattern of retail employees tor intovn, suburban and regional centers. In general, employ... of large shopping center. tend to originate aora froa immediate re.idential area. than do workers in office or indus- trial .-plor-ent. Thi. fi9ure reflects our e.timation that: (51 It i. likely that froa a national perspective, abOut one-halt of the employ... in a aajor retail market place viii be local residents, while the remainder will re.ide in adjacent communities. The more compact the area, the greater the propor- tion commuting under five mile.. The 50\ mar_ i. reached at two al1es for intown centers, thr.e mile. for suburban centers and .even .iles for a re9ional center located neae a freeway junction. Santa "anlc. Place .anaqers believe that the extent of local employment may be even higher there than elsewhere, and that up to 70' of the labor force i. recruited fcom within the City of Santa "onica. ESTIMATED RESIDENTIAL LOCATION OP RETAIL E~PLOYEES Within a five mile radius ~ . lD mlle radius aeyond a 10 mile radius 50\ .0 10\ (6) The .ocio-economic prOfile of the pmp10y... of a retail center i. to a l.rge extent reflective of the profile of the immediate residential ar.a around it, to the extent that one exllts. Averaqe wagel are too low to justify long commute. and flexible part-time schedules and employ.. discounts encourage local re.idents to vork In the retail trade. primarily for secon- dary Income or job experience. 5 . . ; . ' 25 MD1"rIOW. PEK:J!N17o.GE 20 " ~ Ia GlV!ZI 15 DIS"J:lVCE 10 5 .. .- " .".- ~ FIGURE 21 RETAIL EMPLOYEE COMMUTlItG PATTERNS' FOR IN TOWN, SUBURBAN. AND REGIONAL CENTERS 100 90 aHJUa] .~ 80 CI? 70 DtPIDrE1 60 SO 40 30 20 10 .-:. :- -- ~ -- -- '\V'"'.,..;.-"' __ - 11' ,., -" oJ";..'" ........... ~ '" ' ......... oJ'" . ~ /' ~~.... ,{/ CJ!:".... /. . // / .. , / .-. . . . . ,~ /...... ?- . . . . o 1 . 2 ,3 5 6 . 7 4 B 9 10 OIS'mNCE FR:M SI1Un- nc CD.u.* IN ~ ~ i ; ~,~ .::.., ~ ... ~ ... _ .. -.: , ~~A. <!1fi.l. - ~!1i' ;. ~' ~ ~., . -. ~ -oo~y Z'- \1 ; ,.-..~ ' -. ~;7.,~ i- ~ ~. ;; : " - ' "' ,-.-, . ~ ~ . . :~; " ,.i eef.~ 4;ut'IDd\ca'~.,tthal: ~;',~E:;ktlODfo;-bo~e~ldt:"h-., .1a.:....ta,"oDlea....abla to bu7 .tb!t...Uaa:''Prl.;d: be.. bu t!leelllW4 " ,,;,.~ . ~_l" ~ 2.0. o~_ tbe c..ldeG~. popa1a.tUD.?~ IIblle. DeW bOulag .;.. "C-'~ li'fW[Dg prOl!aC:!i4 la the pdyat*' aut" B tbit City. pde. are - .0 high that aew oaita ar. affordable oaly to tho.. with high ia- C~, or to thOM who haft faD4a a.aUahl. throagh tbe Ale of a pre"loa. ~. lent. ba". a1.0 iocr...ed aubatantla11y. Even witb r.nt cootrolr r.nt iocr..... have outp.ced -.di.n income iocr...... 1'he.. chang.. ar. .bawn belov. COKPAIlISOM or CHANCES IN SAMrA rtotua HOUSING COSTS, PRICES DO INCOKI 1970 1980 , Chang. 106 . J\ U3 12S M.dian F..lly Income Median S.le. Pric. H.cUan R.nt $10.793 36.300 132 22.263 18'.800 291 Although price lncr..... in rent.l bou.lng have been 1... than tho.. in the .ln9l. faally aartet, the 1980 C.n.u. .u9ge.t. that on.-third ot Santa "onlca'. t.nant population already pay. in exc... ot 35' at ita Income (or rent. The di.parIty betwe.n ability to pay l.vel. and existing price level. I. indicated be1ov. R&NT&~ INCOK! AND G~SS RENT: 1980 Income Level Proportion Paylnq Over 35' of Inc~. tinder 85.000 S5,000-9,999 510-14,999 S15-19,999 35' 72 32 9 In addition to the.e rising costs, the City has historically had very low vacancy rate.. The vacancy rate throughout the Southern California region i. itself only 1.8' for rental hOUSing; well belOW the 5' which is generally regarded a. indicative of a vi- able hou.inq market. The problem may, however, be In part a .atter of distribution. The City eat1mat.. that the population livi~ 1n the City and eligible t~r atfordable housing 1n 1980 i. lower than that in 1970, while at the same time the number of housing units in the affordable rang. has incr...ed. Thes. figures ~re shown below: 6 ./ / ~ -, "" :' ~ _ I ~ 'if.~~' -~uioIDDt.K. sOtSda lIdS- AIIIt- iOwtt 1'..111.. 111g1ble · Ixl.t1ng Affordable Dnlts 1970 1980 1970 1980 7,300 5, 900 12,545 17,185 · Incom. is below 80' of County median income. Obviously eligible f4.ill.. .uffex in the competition for space and are progre..ively displaced even e. the stock of affordable un 1 ta grows. -, J ~; -' .~:~~ . > . '" . ~ f;:~ ,. r~ "" '0; .... . U'" 1 ti fll .1 - Iii :'\ ;. .L -~ '7\ . .,', ,;' . '~'("'.1 , -; . ',~" 1;J . f.. 'It"i., not PO'.i)l. to dedftian .~~" ..tluta ofi tbe -~~ ' ~ unl,ta Ded8d. to APPOEt' the.,.z.tall~i~o_nt ~.u.~. 1IiJly1St tJie retail .-ploy... 11 v. in boa.eboU. wi tb oth.Ea ao5 thus ..1' o~ ..Y' DOt need affordable houalD9 OD . f..Uy, .. opposed to aD lndivl4ua1, ba.is. ',' ~" - . :if' ',<'t . N.v.rth.l.... wh.n adde4 tog.th.r th... .tatistic. .ugge.t ..v.ral .or. g.naral concla.iona. Plrst, from the viewpoint of the labor forc., for the 30' of the r.t.ll labor force whos. incom. repr..enta the sole .ource of support for a household, th. provision of atfordable housing i. eztre..ly important becau.. it i. difficult to secure an4 retain in the Santa Honica houaing market. Of the ..venty percent of retail .-play... who are part ot famili.. in whicb there are other vage e.rners, or other soarc.. of incom., moat retail ..ploy... ar. likely to be young people. Thi. .uqg..ta the i~portance of . nearby supply of family- oriented housing aa opposed to that which might be suitable for single individual. and coupl... Second, fro~ the viewpoint of the retailer, if the nearby r.aidential area ceases to provide an adequate labor supply, re- tailers at the Place will prObably be faced with a s.ries of unpalatable prospects fr~ a competitive point of view. Ono alternative would be to increas. dependency on higher cost labor: another would be to abandon the flexibility this existing labor force structure provides and make a co~itment to employees who demand more than periodic work. Since most other competing re- tailers have not had to resort to such strategems, this presumably would harm the position of any retail center forced to adopt this posture by the nature of lts adjacent labor market. The Place'. position is also complicated by any increase in the tendency of its workers to commute by car. Management believes that at peak Shopping periods the parking available to Place customers is already inadequate; to the extent that employees come from longer distances and commute by car rather than bus, their parking needs may place pressure on already strained parking resources. Third, from the viewpoint of the City, decllning availabil- ity of a suitable labor force means that the retailer will re- cruit fr~ greater distances. increasinq the traffic and air pollution concomitants of operatin9 the regional mall. Thus. frem a number of different points of view the interests of both City residents and Place businesses would be served by the use of City funds to improve the supply of affordable housing in the Downtown area. o · . ~;'t .' '~l. '~-~ ,.... ". '... - , . . . ;J ." .. ..-doL~r6a' 0';" ~~ UilW.LOI.ae aoa.K:I or ra. cr~~ .Qrta,-1I_leA 'tnC)I'I..,.........oYI.IO..~O. aalt.u A8D 1 &~ COD. '.C~IO. 3333..2 a.D I.~A.LI.BI.G ~.B DO.... UDIvIr.OPIIIft n()JBC'f LOti AID JlODOAB IIlCONI 800'1110 UOlr rDJII) . "l: IIHBalA8, the aedevelop.ent PlaD fo~ tbe Downtown Re4evelopaent P~oject wa. adopted by O~diDaDCe .u.be~ 1121 of the Council of the City of Santa Monica 00 3anuary 1], 1975J aDd WHBRIAB, tbe Santa Monica Place Sbopping Cente~ ba. been deyeloped in i.ple.entation of tbe RedeY.10p.e~t Plan for tbe Downtown Redevelop.ent project witbin tbe Downtown Redevelop.ent project are. and bas created approzi..tely 1, SiG neW jobs, r..ulting in an increase in the de.and for affordabl8 housing for the employ.e. of the development and otber per.ons employed or reaiding in the City of Santa "onica; and WHEREAS, the Redevelopment Agency deaires to .ssiat in the development of an adequate supply of low and moderate income housing available at affordable eosts for such employees and other persons and families of low and moderate income; and WHEREAS, the Redevelopment Agency de.ir.. to make applicable the proviaions of Health and Safety Code Section 3333..2 to the Downtown Redevelopment ~roject, NOW, THEREPORE, THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA OOBS RESOLVE AS fOLLOWS: 1 * ti.. to to lncr.... .nd i.prove tb. aapply of low and .oderate lnco.e bOIl.log ayailable at afford.bl. coat. within the City of Saata Konica. SBCTIO. 2. The Jled.velopaent Agency hereby electa to ..1te p.rt of tbe require.enta of aealtb and Safety Code Section 33334.2 (tax incre.eat expenditore for low and .oderate inco.e - bouaiag) applicable to the Downtown aedevelop..nt Project, aabject to Indebtedne.. incurred to i.plement the project, and oaly to tbe extent provided for in each specific iaplementing re.olution tbat may be adopted from time to time by the Redevelopment Agency appropriating funda into the Housing Trust Fund and providing for their expenditure. SECTION 3. Subject to tbs availability of funds to be provided at the discretIon of the Redevelopment Agency from time to time in specific implementing resolutions, the Redevelopment Agency shall use funds expended from the Housing Trust Fund pursuant to Health and Safety Code Section 33334.2 to increasing and expanding the supply of low and moderate income housing available at affordable costs within the City of Santa Honiea for employ.e. of Santa Monica Place Shopping Center and other low and moderate income persons and families. Each specific implementing resolution of the Redevelopment Agency shall be deemed to be a determination of the aedevelopment Agency that the provision of such housing will increase and improve the supply of low and 2 nteat DeCes_q to provide .uch boa.log. subject to Indebte4a... lDcll~red to lapl...at tb. Dowatowa ae4e...lop.eat Project. aael only to tbe esteat provided for ia eacb specific l.pie.eating re.olutioo tbat .ay be adopted fro. ti.e to ti.e by the &.deve1opaent Agency appropriating fuada Into the Housiog Trust 'uad and providing for their ezpea4iture. ID iDcrea.ing and improviag the .upply of lov and .oderate inco.e bou.ing available at affordable coat vitb .onie. appropriated into the Houaing 'l'ruat Pund' tbe aedevelopment Aqeacy .ay exerci.e any or all of it. pover. iDcluding those .et forth 1a Health and safety Code Section 33330&.2(<1). SBCTION 0&. Each specific imple.enting resolution of the Redevelopment Agency appropriating funds into tbe Houaing Trust pund and providing tor their expenditure, sball be deemed to be, to the extent provided therein, an election by the Redevelopment Agency to lIlake part of the requirements ot Health and Safety Code Section 33330&.2 applicable to the Downtown Redevelopment Project and an Obligation of the Redevelopment Agency to meet such requirements to the extent provided therein, and shall constitute an indebt.dnes. of the Redevelopment Agency for the Downtown Redevelopment Project to the extent of the fuods appropriated into the Hou8iog Trust Fund pursuant to Health and Safety Code 33334.2. 1 ~- '&CtIO. ,. !he Agency .eccet.EJ' aball cez:tlf7 to tbe ..sOptlOD of tbia ".oluUoD, aD4 tbeDcefoctb aDd thereaftez: the .... .ball be 1a full force _04 .fleet. Approved .. to fora: Robert Pl. Ifyer. Ac;eacy Attorney .. :J"''''!t ~. VSaRBA., the lede.elopaent Agency ba. adopted le.olation .aaber CRAS) e.t.bll.bing tbe Downtown lede.elop.eat Project toov aDd KocSerate IDCO_ Boa.lng 'rraat hod, aDd WBZRZAS, in accordance with ae.olation .uaber (RAS), the Redeyelopaent Agency de.ire. to allocate .oaey to th. Bou.ia9 ~ru.t Puod, MOW 'fHERUOU, 'fHZ UDEV&LOP"DIT AGuer or THB CITY or SAJlTA KOMICA COIS U50LVB AS rOLLOWS: SECTION 1. Purauant to Reaolution Yumber (RAS), the aedevelop..nt Agency doe. hereby allocate the aUIII of $3;1,;'; into the Hou.ing Truat rund to be paid Into the Housing Truat rund tro. property taze. allocated to the Redevelop.ent Agency pursuant to He.lth and Safety Code Section 33671 and the Redevelop..nt Plan for the Downtown Redevelop.ent Project. SECTION 2. The funds .0 allocated ahall be held in the Houaing Trust rund until expended by the Agency for the purpo.es .et forth in Re.olution Number (RAS). SECTION 3. The Redevelopment Agency hereby elects to aake part of the requirements of Health and Safety Code Section 33334.2 applicable to the Downtown Redevelopment Project to the extent provided for 1n this re.olution. SECTION t. By adapting this resolution, the Redevelopment 1 . . TO: Mayor and City Council -2- January 3, 1978 also resolve a difficult relocation problem which could delay the Downtown Project completion. The alternative would be to retain ownership of the City-owned property for future disposition at a potentially higher value. Recommendation It is recommended that the Council authorize the City Attorney to draft the appropriate documents which would transfer ownership of the property at Fourth and Broadway from the Parking Authority to the City of Santa Monica, and effect the exchange of this property for Parcel 197-22 in the Downtown Redevelopment Project. Prepared by: John Herner JH:mh Attachments ...aaia, It I. tbe polley of tbl. 10callt~ to a..gEe aD adeqa.te aapply of ataDeSard boa.lag affordable to low aa4 ao4erate laco.. peraoaa a04 faaiU.., aDd WBEaU', tbe Dowatowa Redevelop..at Project ba. beeD .atabl1abe4 In tbe CIty of Saata Moalca la tbe a,rea bordered by Broadway, roartb Streetr ColoradO, aDd Second Str..tl and - lrHEaus-;- "tbe-OOwn~owa iedevell)paeat lJr"ojee-ena a.n- fully d.~elope4 with a coamercial facility, aDd WHIRIASr the Redevelopment Agency of the City of Santa Honica .eek. to establi.h a Dovntovn Redevelop.ent Project Lov aad Koder.te Income Houaing Trust Pund pur.uant to Health and Safety Code Section 33334.2 for the purpose of incre..ing and improving tbe aupply ot low .nd eoderate income hou.ing available at attordable coata wJthJn the CJty of Santa HonJc"; and WHERIAS, Health and Safety Code Section ]3334.2 require. that the City Council concur vith the Redevelop..nt Agency's finding that the u.e of the fund. viiI be of benefit to the redevelop.ent project .re. when the funds vi 11 be elCpended outside the boundaries of the redevelop.ent project area; 1 will beD.fi~ tb. DowntowD aed...lo....t proj.ct by ezpand1D9 boa.l.9 oppo~tanltl.. for tbe Downtown a.d...lop..at P~oj.ct labor force wlt!alD a raa.oDabl. dl.u.ce fro. tb. project, JIOW. 'fH&&UOU. ftl cxn COOllCIL or ftm exn ow S.ur1'A MOllICA DOl. RUOLn AS WOLLOW's .ac'no. 1. !'be City Council fiad. and deter.ine. tbat tbe Downtown ae4evelopaeDt proj.ct will beGefit by the ..tabli.h.ent of tbe DowntowD .edeyelop.ent Project Low aDd Moderate Inco.. 80u.1D9 !'ruat rUDd in accordanc. witb ..alth and Safety Cod. '.cUon 3333..2. SICTIO. 2. The City Clerk ahall certify to the adoption of thia r..oluttoQ, .nd thenceforth .nd ther..fter the .... .hall be in full forc. and .ff.ct. Approved a. to for.: Robert M. My.n City AttOrney 2 t _ -" {tor- d ~*-4I~R~IOIr . ' On Dece.be~ 13, ... ,. 1'83 tbe aedevelop.eat Agency of the City of :.~ Santa Honica allocated funda to support the acquisition and rehabilitation of houalng. A total of 827'.'" in tax incr..ent funda fro. the Downtown Redevelop..nt proj.ct ha. been allocated for fi.cal year 1983-84 to provide supple.entary financing for the acqui.ltlon and i.prove.ent of propertle. to pre..rve and incre.s. affordable hOUsing opportunities for lov and moderate income hou..hold. throughout the City. The Agency ha. e.tabli.hed operating policies and procedures for the administration of the City-vide Housing Acquisition and Rehabilitation Program a. follovs. DEFINITIONS DelED: Departaent of ~olllmunity and Economic ~evelopment, City of Santa Monica. Thi. Oepart:aent wi li administer the Program f?r t~e Redevelopment Agency under the dlrection of the Executi~e utr.ctor. HOC: A nei;hborhood based non-pr:l!l~ Housing Development Corporation. Low and ~od.rat. Income Households: Households ~~~h ~nccmes below 12'" of the Los Angeles Standard ~etropolitan Statistical Ar.a median, adjusted for famlly Slte, ~s published by the state legislature from time to time. l L ... ~.: v "7: ~~ < .:J ~LL+ ~ ~ . It ~;>,...-.. ~ >!''' .'pD.I.fo~}~~ .. .E.... a4juate4 fOE Gait ~ " '.~ Maxl.ulIl Allowable Rent: The legal rent for the unit ander Santa Monica aent Control Charter A.end.ent_ adjusted by the Rent Control Board for annual expen.es incre..e. or for capital illlprove.ent.. Pr09ra.: The City-Wide Hou.inq Acquisition and Rehabilitation Program. 2 aehabilitation: Correction of local code violations and removal of health and safety hazards; upgrading of housing units eo decent, saf. and sanitary conditions to cOlllply with the Housing QuaUty Standards promulgated by HOD. and with locaL standards: and repair or replacement of major buiLdang systems ~c components in dange, of !~llure. El1'llble rehabilitation worlt lIlay include alteration., additions and i~provement. needed to l~pro~e the ba.ic U'/abillty, energy effiCiency, acce.sibl~lty for the di.abled, .ecurity of the property, and to reduce overcrowding. PROGRAM REQUIREMENTS Program Funds .hall bo diSbursed to e~lgible cOrro:.ters as deterred ioans to make up the flnancaal 9ap ~etween a~al1able non-program r..ourc.., Including the ::Iorrowec's ~qul~y and private finanCIng, and the costs of acqulon9 and rehablll~atln9 affordable ~ulti-famlly housing. .... ~ i! r :tt~ _ _.. II1,161.~80rrower. t- ihilbl: ~~r-ro';.r. .are neighborbood ba..d aon-prol1t bou.lag developaeDt corporationa duly organized to pro.ote aad undertak. co..unity developaeat activitle. 00 a not-for-profit basis. Ell91ble Properties Eligible properties villI {ll have fiv.- or aor. apart..at unit.; (2) bave at l.ast 85' of tb. units occupied by, lov and mod.rat. incoa. tenants at the ti.. of acquisition. (3) ne.d mod.rate or substantial rehabilitation; (4) be located in the City of Santa Honica ..nd be tree froa significant adver.e environ.ental i.pacts e.cept tho.e that can be ~itigated through r.habilitation. (5) and not require peraanent tenant di.place~ent to carry out the program. eligible U... of the Fund Funds can be u.ed to ~.~e deterred loans to .119lble borrowers for the acquisition and rehabilitation of eli~ible properties to provide affordable housing. principally tor lo~ and ~oder.te income hou.eholds. Fund. can also be used for related predevelopment activitl... Includlng profe.sional servlces ~hich cannot be obtained on a contingency oasts. -Appllcatlons for properttes comprlsed of fewer than flve units may be accepted at the discretion of DC/EO. J C.~illt.ttoa activiti.. .. follo.., ~ed.v.lopaefte ~nd.-Total '3','" fI5,1" .hall be available tOE tbe purcba.. of options aDd -earn..t .oney. depo.its. Thi. fand vill be r.l.a.ed to tb. HOC prior to approval of specific proj.ct.. Th. fund. shall be held In . s.parate, lnt.r..t-b.arlng account by the HOC and used only for the.. parpo.... Each option or purcba.. .gr....nt acquired vith fund. shall contain th. proviSions ll.ted in Exhibit A2. Th. r.mal~in9 51S,ttt sh.ll ~e s.t a.id. for pr.development exp.ns.. of projects that receiv. preli_lnary funding commitments from the Ag.ncy. The.. .xpen..s shall be limit.d to s.rvice. ehat :annot b. ~beeined on a contingency b..i. and may include architectural and engin..ring f.... titl. reports. legal and :)rianizational !ees, and :nortgag. appllcation tees. ilre li:1I1 ne ry mark.t or feaslblllty studies. or crganizational operating .xpenses sh.:l not ~ eligible. The.. pr.development fund. shall b. disbursed to eligible borrower. as d.ferred loan. at the time of the Ag.ncy'. prell~inary approval of specific projects. The amount cf pc.development funds dlsbu:sed to each ?roject sha:l be included in the calculatlon of ~h. ~aXl~um deferred loans from the program and sh~ll ~e considered ~s part of the principe:. Acquls1tlcn and RehabIlitation - $249,010 The r:emaining S247,_"'9 shall be used for deferred payment. subor:dlnate loans !or acquisition and rehabl1itatlon. oS , ...,,~~ ': . ......." ~ ~ J. lael114e' 'f/ ~'! ,'\' I ., .... .It ~ --- .... ~:. ~ ~ ;." 'r ~ -~~ . .. \ parcb... at .sht1a9 .altlh.Uy bullcUDg8 } coa.latiD9 ot fl.. or aor. aalta for reDt to low ~a4 ~ aoderat. lnco.. hoa..holds. IlIglble dev.lop..nt costs iDClada .lte acquiaition aDd preparation; reh.bilitation of dw.lllng aDit., CO..OD are.. aDd related st:ructaEO.; carrying charge. aDd financing fe.., architectural, legal and organizational fee., and te.porary relocation co.t.. No per.anent displace.ent of tenant. wlll be perai tted. Pre- pay.ent of certain financing r...,e.g., bond issu.nce cost. by the Agency, is an eligible cost if reque.ted by the HOC .s nece..ary to .a~e ravorable financinq available. 2. Th. purch... or 1.... of land and/or bu 11dlng. for nev con.tructlon or .ubstantial rehabilitation of low and moderate lncom. hou.inq in t.nde~ vlth the Section 8 Sew Construction or Substantial Rehabilitation program.. the Seetton 2lr2 direct loan progr... and/or the development of inclu.tonary hou.lnq throuqh an .80/20" tax-exempt bond f i nancinq. Eliq~ble development cost. Are the sama a. above. [.oan reul. The Trus: Fund loans shal: ha~. th. !~llowlng ter~. and eonditlona: Term: Loans s~a~l be de!err~d for the twent1-fl~e (25) year term of the Requlatory ~gre.m.nt. 5 "!MAt! aball be ..~ aa Lollo.as ~. A. If the Borro..r .l.ct. to .xt.Dd tb. t.ra of the a.golatory A9r....at for a .lni.om of teD (1.) y.ars and do.. not Yl01at. tbis Agr....nt. tbe CIty .ball valve pay..nt. of principal aad inter.st, and tb. eatire debt shall be forgiven at the .od of tbe extensIon ter.. 8. If the Borrov.r elects to pay the Pro.lssory Note prior to. or at the .nd of. the term of the Regulatory Aqr....nt tbe entire a.ount of the unpaid principal plus sl.ple accrued interest shall ~come due. The R.qulatory Agree.ent shall reJaein In fu.... force and effect for it. terlll regard:e.s of any prepayment. c. If the Borrower ~iol.te. the terms of the Requl.ttory Aqreement .uch that the Ci ty declares the prolllli..ory ~ote in default, the entire allllount of ~npald principal plus inter.st, added to the principal accrued, and compounded annually shall become due. 6 CODYeDtional financing seller tate- bact financing. u.ed in conjunction with the ~rust Pund Loan on tbe sa.e property. The DC/ED .ust approve all request. for: subordination. The loan shall be furth.r ..cured by a Regulatory Agreement to aaaure that Trust Pund Program fund. are used to provide long-term affordable housing opportunities for low and moderate income hou.eholds. The HDC and Agency shall ex.cute an Agreement regulating project rents, tenant selection procedures, use of project inco.. and changes in project ownership or us.. The Regulatory Agr....nt .hall b9 r.corded with the D.ed of Trust and Note. Maximum Loan Amount: The maxiOllulP Trust Fund loan per project shall be SlS,&g& per unit. However, loans should average no more than SUt,Sg" p.r unit. The .SlS,,,,,, per unit ceiling may be waived by the ~gency if there will be a siqniflcant benefit to low lncome tenants Or to the attordable housing stoclt. 7 ~- ;>0; .... rev!e. eacb lOaD to easare that the borrower ba. in-kind or in ca.b, in the project to guarantee .ecurity for the ~ru.t Fund. A. a general rule, the total loan (progra. plus noa-Progra. Pun4 loaas) to value (total develop.ent cost) ratio should not exceed 95'. This requlre.ent .ay b. waiv.d by DC/ID only to the .xtent n.c....ry to facilitat. participation by new HDCCs) without suffici.nt capital r.s.rves. D.termin.tion of Reasonable Co.ts and Ezpens.~ DCIED shall review borrower's e.ti..t.. and projections of renta, exp.n~as. rese::":ea a:1d development ,:os:.. t f nece..ary. the Aqency may request background documentation from the borrower and may adjust figur.. .s appropriate. Senior Financin9 If the Trust ~und loan 1. subordinate to . ~ari.ble pay~ent loan the HOC must submit projected cash flows tOt the teems of the lo.n. showlng the ~aXl~u~ pos.ible lncr..... l~ debt ..e~lce periods per ye.r, the proJected rent and ",xpen.. lncr...... and the means of making up any deficits. 8 .. ", . loaD. calculate the aortgaqe a.oant at tbe ter.. aDd rate. of available financing progra.. other tban that propo..d by the RDCr if th. alternative ter.. and rat.. would reduce th. amount of Agency aubaidy r.qul rad and otherw ia. confora to the Program requir...nt.. a.financing of Primary Loan [t the Borrower ra-tinance. the primary debt, or borrows additional funda from a non-Program sourc. after the initial c10ain9. theAgency muat review and approve the terms and ::onditic;na. .:lnd '=he proposed u.e of proceeds. P;119i~le uses of caah from retinancing or new debt are: - '1 1. The maintainence, operation. or improvement of the .ecured property; 2. The purcha.e of additional properties subject to the Program eligibility and operating requirements; l. The prepayment of the principal and interest on the Program loan. Compliance with State Regulation. All projects must comply with all appllcable state requ1rements tor the expenditure of the Housing Trust Fund established 1n accordance w~th Health and Safety Code Sectlon )3)34.2. 9 ~"~~tach.eDt to the fl~l lDarketing efforts and tenant .election procedure. the BOrEOVe% will ase to maintain .nd, wb.re fea.ibl., to incr.... low and lDoder.te-incom. housing opportuniti.. in the project. Borrower ,. shall specifically market available units to persons employed in the Downtown Red.velopment Project area and other household. who work in but do not live in the City of Santa Honica. Project Hanagement Plan The Borrower shall prepare a Project Management Plan for the Agency'. review and approval. The Plan shall be an attachment to the ~egulatory Agreement. The Plan shall describe the Borrower's policies and procedures concern!ng: 1. Management/tenant relations and aSslstance to tenant or9at\i~atiot\s. 2. Tenant selectIon and or1entatlon. 3. Procedures for determinIng tenant elIgibility and certifying incomes. 4. MaIntenance and repair serVIces. 5. On-site management faCILItIes. 6. Rent collectlon. 7. Records and reporting requlrements. 8. Personnel and staffing. 9. Compliance WIth all tenant protectIon laws, including rent control ~aw and bUilding Health and Safety Codes. UJ -.' ~ ~ - 1: . ~'raii '11110 :=il~ ~t9jbliitY .~,~l~.~.a~~if~~ ~1 R~~.it.; .aad ~~.2.~ltiV~ ... oEit.ria to be applied in ..lecting ..OD~ eligibl. project., .. Jil,J < .1 ?\~ .. n.c....ry . Kinimum Requirement. A. pinancial Peasibility: Each project must meet two f.asibility t..t.1 1. Th. Program loan ahall not exceed the total amount of the gap between the maxi~um affordable mortgage amount available from non-Program sources and the Total Development Costs .s defined in the program application. The maximum Program loan shall average Sli.i9U per unit per project and may not exceed SlS,eeO per unit per project without DC/EO determlnation of special benefit to the neighborhood and eligible tenantS. 2. The total Program request shall not exceed 33' of the Total Development Cost (TDC) of the project wlthout DC/ED deter~ination of special benefit without DC/EO determination of special beneft t. The maximum affordable mortgage amount shall be calcu:ated us~ng: (1) Section 8 Fur :'1arket Rents for the subsidized unlts, (2) the maximum allowable rent for the unsubsidlzed unlts, (3) the proposed interest rate and ter~s of the primary loan(s), reasonable aperatlng alLowances ~nd reserves lncludlng a reserve to amortlze a \'arlable rat!! mortgage as needed, and (4) the 1.1 market lnfor.ation. No project sball recei.. a greater deferre5 loan tban 1. required to :a.et the gap betveen tbe au.xi.u. .ffordabl. mortgage ..ount and the total d...lop..nt coats. B. Low and Hoderate Income Benefit: Eacb project must meet the .1nimum requirements for benefit to 10v and moderate inca.. person. at the ti.. of acquisition by the HOC. One third of the unit. muat be affordable and available to very lov and lov inco.e households. All units after acquisition and rehabilitation must rent at levels affordable to lov-~od.rate inco.e per.ons, a. defined in .ection Sgg93 of the California Health and Safety Code. The current rent and income li~it. are shown in Exhibit 0 attached hereto. C. Project Location: All project. lllU.t be located 1n the City of Santa ~onica. Project Slte. ~u.t be free from adverse environ.ental impacts. e.9. . noise, or the rehabilitation activiti.. ~u.t .ucce.sfully m1tigate the.e impacts. D. Tenant Participatlon: .\t least 51\ of the existing tenants in a proposed project ~U&t afflr~ 1nter.st by slgnin9 letters to the HOC, 1n partiCipating 1n the progum. 12 vbo bav. Santa Monica .a~k.t including large fa.l11.., f..i1ie., and tbe di.abled. B. a.. bargain sale or ..ller-financin9 techniques, and/or use of equity syndication proceed. to reduce total acquisition costs. c. Significantly improve the housing stock by r.habilitating building. with health and safety probl.... local code violations or incipient danger of failure of major building systems. D. Leverage other federal or state housing subsidy programs. E. aenefit high percentage of very low and low income households. F. Have a ~orrow.r'. equity con:rtbutlon in excess of 19\. 13 1. The BCD sball sub.it a rega.at for .arn.at .oo.y funding and a standard Grante. Agr....nt to be approved ~ the Agency. The RCD shall sub.it .vidence of the following: a. The HOC is . duly organized neighborhood based non- p%ofit d.velop..nt corporation; ----- b. Thll H~ can demonstrate capaci ty.... to succ..sfully carry out acqui.iti~.nd rehabilitation aeti_iti..; ~_-~- ~ ~ - --- ~""" -.... c. The HOC certifies Ut~_t" al__l f~~. be used. for .ligible activities ~nder the Ci~~-Wid. Mousing Acquisition and Rehabilitation program. 2. If the HCO'. qua1.1f1cations are acceptable, DC/EO shal:' recommend that the Agency approve tn. execution of the Grantee Aqreement . J. Upon Such approval the Agency sha:'~ dlsburse the funds to the HOC. 4. The 'IDC shall deposlt the ~unds 1:1 an lnterest-bear1ng account. The funds shall "revo:ve"; as loans are closed the HOC shall return the amount of the earnest money depos1t to the account for use in other acqu1sltlons. 1-1 OIL,,". . .. .4:' .... bW. ~ ' "... . ...1 Jo .,~~ ~~~... ":-.. b.."" , '''i..~ n.aa ..Y ~.t.rr-tb. loa. ID'tbe aCcoiDt: fot aao~~ real'J O~ b. ~b. RDC aball retarD all or p.rt of tbe faoda to tbe Cl~-Wld. RoaaLa9 Acqal.ltioa Pr09r... Application. for Delerred toaaa 1. Th. ROC ahall n.gotiate wltb poteatlal Sellera to ~.cQr. . ........~ ----- , al9o.d Parcba.. A9r....nt OD a .pacific propertr. Th. HDC .ay ua.~. -a..ldentiet Parch..e Agr....at aDd o.poatt Receipt- for. ~ -- attached a. _.biblt AI. Bafore e.acutlD9 the purch... .gr....nt the HDC shall J~Ci~d. the cond~ron. atteched aa Exhibit A2. -. 2. The HDC .hall co.plete the Application for progea. Fund. and prepara al~ requh~ attach.enta. Appllcatlona lIIay be IUb_ltted at any :Ulle durtnq the pro9ralll ye.r and vlll ~e conaldered In the order subllll:ted to ~C/Eo. The HOC ahall aublllit . copy of the a19n~ purcha.e .qr....nt and thr.. copl.. of the Application for Prelillllnary CO.1II1:~.nt to the Houlln~ Ol?ialon of DC/EO. J. The HoualRe; :)tVIIlOR ataff ah.ll re'/le" the appUeatton to: a. de:.l'~I~. :~At the ~ln~lIIu2 pro9l'.~ r.qulrementl aro :tet; :. .naur. th.a: :~. ..:~s.t.d do-:olopm4n: ::0&:1 Jr. rea.onable; c. reVl.W the ~ntimat.d ~ort~aq. 4~Ount ~nd HOC equ1ty con~rlbut1on l:'l Jccordance "tt~ the proqra",'s underwrltln<j quidelines. 15 .' 5. A Preliminary Com.it.ent Letter .ball be prepared by the Housinq Di"ision, re"iewed by the Director of DC/BD, and dgned by the Bxecuti"e Director. The letter shall state the ma~imum a.ount of Program Funda res.rved for tbe project and 1iat all tbe additional conditions, documents and steps tbat must be taken by the KDC to obtain a firm commitment of PrQ9ram Fund.. 6. Upon i..uing a Prellminary Commitment Letter the Executive Director sna11 authorize re1eaae of the predeve10pment funds approved for the project. 7. The HDC shall eomp1ete the loan approval process with the primary lender and shall obtain all other required approvals such a. the Section 8 ~oderate Rehabllitation ~9reement and local building perMits. ~hen the lender has given final approval of the loan package;which ~ar be contingent upon a final fundin; commitment by the City, the HDC shall submlt the final loan closing documents pac~aqe to the ~C/EO f?r review. 8. Th. DC/EDt. HouSing ~ivision shal: revi9w the fInal loan package using the cri~er~~ de~~lled above, and if ~ccep~able shall prepare a final commitment letter and the closing documents for the Program loan. The DirectOr of ~C/ED shall review, and the Executi~e ~irector shal: sign the final letter and package. 16 It*:,th.,~ pJ:~9r.m ,I", 7 ..~ disbursement foracquisition costs. the primary lender or other agent .elected by the Agency shall disburse the funds during rehabi! ita t: ion. Immediately upon loan closing the HOC shall submit one copy of the loan closing package (Exhibit "En) to the Housing Division for the project files. 1". The Housing Division shall monitor the project during rehabilitation as needed to ensure compliance with state regulations. The Housing Division shall request notiflcation of the final inspectlon and fina~ constructlon release from the primary lender, and shall revlew management practices and reportlng procedures wlth the HDC and project management agent at that time to ensure full understanding of program requirements. 11. Thereafter the HOC shall submIt reports and malntaln records as speclfled In the Regulatory Agreement. The Houslng Oivislon shall monltor complIance with the Re~ulatory Agreement on an annual basis. 17 prior to r.l.... -~ -Zarn..t Honey" Fund. c: O.ferr.d toan Application for Acqui.ition/Rehabilitation 0: Regulatory Agreement -(Reserved) 1. Section 8 Rents 2. Income Limits 3. Management Plan 4. Affordable Rent Levels E: Contents of Closing Document Package 18 , . ... :. .... -----. .. ..''''''t..' ~...._~ r./.(. "'~!1.!\!'" :', ; ',~~{... !~""T Ap~~ffJ . 'd,' .,:ffk .. ,,' , . ~ ,1':~!r ., :r . .~...t.'::S. .~ ~ ..........--......., ::-.r .' 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'--......... ..... _.. _.... ~.. _....-..__.. 11'- -- -.. -... -.. --.....- - __.... loa _...... of"'" _.. .....__..._.. ~_... _._ _. .._or..--. '. <" .. as 11.11I'I' SIIUICI"ra PVIlCM.UIrI "''',""Al" -,0.;,_ 1Iton'. "-" Io.. _ 10.. _ _.. _ __...... II ...- ---. ---....-.-..---..... _. .....,. - - --_.... - ..--..._ .._..........___.._ _____ III _... ___ -.. .......... .. .. .-... -.. --. - - ..... ...... - . -" .... - -... -.... -....... - -- - - - -- - - ..--...,..... - -......- ...-.- -....... lilt ... loa _ _ _ ..... _ ... ,_ ~.... .. _ .. ..... _ .. Soaor. _ _ .. ... _ II ... ___ ....... ....IUSO .....Ul C1.Ln..n..__.... ....,...t....ft~..._ _....e.-... __.. _..._...... ........ .. ...-.... ....., " ......... .. .. ....,.., . -.III_ .. ..... tI .., .....,., lfna.. "'"' , _ -.a ....... It. .. ... ..... _ _.._of... _ _..... _.~-_:,-:.,.. be.._ -. _ _.. _ _ _ II ......... _ .._ _"'IllII_..._ _.... _.. "1_"_ __.....__ r-,............,.... ___ "_ _ _ _ ... ..... ...,...~n YAlD. ClAn...... --" _ _ ~_._,,:..-:._ a-r_ _.. _ _... _ _.... __.._ .. ........ .. ,... "'""' ~ ....... ., Ie ...., .., ,...n, .., ,........." " ...... -r......H tit ftlll....n.. Ill6alIat ~ ........... III .... ~ . _ _ -IT". r_....... ~ _ _.. _ _.. ...,......., .. _ __ _..... __ S _ ""_ lilt ,... ....., _ 10....... _... _'" ..... _ _ _ ..._. _ ~ II .... s.w... '1M,.,.......... ......... Il.rM "'- "........ ... _I... ., ~ .. .. ~ .. .. C8II1,.c1 "'In.t ........, .. ... ~ It ... ........ -- -., .. ,-.. -.. '-- t"! __ -.,_ .. ..- It .. ..,_ too _""'!'" -'r." ... __ .. ......,...., r_ ~ .......... MUO... W ....1I'It tIIlJ ....... II' .. ........ fill ,.. ~ n.. ~, ....... ph", ......M"'~" PtIII ,... "IU ,.", ...rlM _ .. "-'T ... .....,- ,. CDIfTnIll.llc:T-<<nusr cu.UIL w.,." to .... _ ... __ '" _. ,." ...-.. __ ....... _ 1M '- __ lor IImo2 .. _. _ - - _ ... ""'10 --. It oil. ... _ ......, ,. .... .... I. ...... "'m IIOIKt I. ... ...... of r..o.... _ ~ ...... .... - oft.. _ _ _ .. r_ __ ...... _ __ It "" _ ........ _ .. ..... ... _.. _1ft . ...... _ _ III -....,,-..---....--..-...... ..-....- ..-.... -- -..--- -..--- ....-.- ....... ..._-",.,~- ......-..-- ......-..-..----.. - ~..._...... -"r"'_ .....__--- ,... ............,..... ........., lH.ft, .....-...~.... r...",,,., ... nlllT .f ... .....".._ .,........ .. 'N .....,... ..4. ... I ~ ......... ........ -. -... -CIII ....... ~ COIiID~OII8 :rem ~IOIr _ III A, Pml~. AGPR~l' the BDC .bould includ. the follovlD9 condition. in ~ Purcba.. Agreement prior to it. execution. Th... condition. are e..ential to protect the HOC from 10.ing i~. Earne.t Money Fund deposit. Th. RDC .hould includ. .itber the.e conditions comparable or other .ppropriate .nd nec....ry condition.. The HOC .ust insure th.t in event th.t circu..tanc.s prevent fin.l clo.ing of the purch... or Ie.... it viII recover it. deposit. 1. purchaser has the right to access to the premises for the purposes of inspection, studies, survey, etc. during the period that the Purchase Agreement is in effect and until the transfer of title. 2. Purchase is contingent upon Purchaser's approval of the results of all tests, studies, and the like prior to final closing of the purchase or lease. 3. Purchase is contingent upon Purchaser obtaining all necessary governmental approvals and permits. 4. Purr-haser shall have A specified period of time to obtain suitable financing and approvals from private and/or public lending institutions, financing agencies, insurance companies, etc. s. In the event of terminationof the Purchase Agreement due to Seller's tailure to perform as required or to occur.nce or non-occurence of contingencies set ""~ F,-<;<'ft fr- -.,,:f -'" -1# ir: '1 ~. ': .. -- - *~C ~ ~7 ~!'.~ r., , ' ',)1 -i:~ .';,;, A-';- - ."--- ~ .: * ,r..~,. ~ ' ~... ~~._ :-1 '.~ ,..-f"-i__ ~ l.' ~ ~" ..!- Jtj-. J'?~ . ~ ~;-'. .,.... ~ ..;;t,~ ~ ',""::;;: ,,}: ,,,'oi';'~ "'"if, t _~,-' . ~ ~.. .. ". .. '..., . ~' -~- -~~~ -..... .- 'if ~~ >-7 1S , ",\", ,~,! ~ ~ ~'io.-. : ~ 't . ~ .( . , ,~ $. " ~..4{" if ~ .. . iortb herein, Purch..er .ball be entitled to the iaae41ate retarn of the depo.it. ... (',I.) I1MMIt lletallIlM ~ .....-IldII... r-MU-a 11.&11 _ .... ruu __t: c:nwl JpIIo. LLn AlJ_aozy 1all4J.t>i. . ana LLn __..~.... r.~"_'o;i.. , Ana ...I~ r ". ~ JutUJ. ~. . . .. of Ulliu ~ "'!lrl ~ot II&U41lop 1m Pfl1IlMn~ O~:I.ona I Jr. Su11~ ~r1or F!"~.b Sl;......"ct....al SYltaa f':. "T ZOftLA, . !~. or .,.t". rloor Syo". B..~1aq-Ale IYI~ s. ~1'Mnal OJIIqDIIIq t.\IIil oa .1lO'D1'T1 Ca". Acqu1~d Pvrr:1\.ue Pr1.,. Ad41t4__1 Co.~. Paid .... ~ If t.eu-'lo14. r.naual CrowI4 Mft't Taeal ::o.t c..1:a~ 3al.a.ne. S f U"1.HU... ~ C-"~ Db.....r:. :na S1t. s S C'na.aua.l stee raaeur... Wa'ter S....r. CO..u rllt. Poor Dra1.na.,. ~1:&1n1n., walla ou..r (.pec1~yl RacK '~e1aa. ZZo.1cn R19h ~."ar Tabla Ben. Off-51". :mpro....n~. C. ESTIMAU or :IICOME. N~r ~t :.ivlnq Area r&:l11.y ':";.tpe Jn1t 'Scpue r..cJ coapo....e~on ~: 7I1nUlt..s IllI fLu :.0../_ ~2.. ...nJ.:' Aent. ?r '4cn ':h ::.t...~ ~"'Qn~~..! ~r': :!lor ';n1. ":. ':"'''P. 'Jum.::4r c! "arXJJ1.9 Spac:.. ~AL !..HLnATEIl JWl'TM.S !'eR ;u..I. ,AlULY ,,"HI~S CozwezociaJ.1 :..&\U14ry r nc. S ?-r '1IOnt~ =;u. ESr:''!.l.frD :1IOSS ?!l;O..'"EC':' I'C::C AT ~CO, X:::'"P1\NCY ~ro.1 :o:oor At.. Iq ~t.. ~.'t ~n'C:Lbl. ~.i.d.ne2...i. Are.. -:-:r;u. ,\NW;u. =no S ~.t: ~nl:&.bl. :ClI:IIer::::..al "r.&. ~. ot Employ.. ~o. Rooms Iq.~~ '{o,-= ,P.ODUC:NG 5,1\0: :.capoli':..:.on ,f ':n1-: !lq I. ~c~~iQ" c! :r.1~ ~n ?ro~.~ :: :__[j:l'~.J:N':'.>,ND JE:A-vtCES :~c:.:JOtt) ::~ l\VI'I'l :,.J.~n:'. 'o.c:~ AFPrapt1a-e. :tuU) ~ ltanq.. 'Ga. :lr E.:'.c ~ ~!r19. ~::.a. Qr ~.:..l;'~. Air :ond.. .E..s.-UJ.p. :nl".' Y'.J.. :::".n !.xh~u.~ :an :..A\lind.ry :&Cl.':':'~l.. ~1Jp05&1 :.1.ah",..b..r :.a.rp.'t :rap.. S"'~1Ilq ~OCll :'1nr.1..I :::::U,U,",,: :':."Ier '.IMe:.!yl ::;.s of...-; Kc'C "'..'Car ::;.001(:="",'9 4r ':.;Jn4.1::.etnl.'"I.q H..~ ~c: I&t.r :~o~~nq ~r :Qnd.1:.~nlnq _...;hC:.. etc:. , :':'1 ......".1.': ~.4~ HO~ ~.~.r ::ehu .:-:HER M'.,,!::' .....t.t ::tCOllK ~lI'rU%OIl UTE ;U;;::::S:-=:Oll ~p. :.!:UE ;CSl' :::NliTlIIl=.:lIl ::lSTS "U:$ l'lIcoosm 1;"= TOil i1JU- ~--r-,-~I3G tXP Cilia ~ ~ ~~~ ':'O'rAI. EDEIlSES AIIIl :ua PJOnC: <:llOSS :lICOMI: ,~ I.' ~ .t__. ....._ .'" =!!:~... '..... r' _'. . _"If 1. L.LtllIiAt. eto. .. -- t. Cl&I 1.lI. au... u. ..,sou u. 0dI8lr U. TO'hL ".' 14. 1Iepa1n l5 . IAallnllft 16 . Oellu ~ 7 . t'OtAro 1'. kal Pcoperty 19. ""01\&1 PZ'OP'"~I 20. Ellploy.. Payroll 21. Other 22. TOTAro Xa1P~ c~etr. 'role<:el w .r K. ~.i. .~It ~s :11::0."<< !CTAro PJC..'"EC: !XJlQlSZS lQT mco'-lIl :0 l'RC.:tc: :.\IIll :''<Pl'.I:l'VI:MI!:!S =.u. "Queue; :::>.AACZ/PAlUC:1C s:':%: :''OIIO~ =AL ]QI~Ea'S TIEX9&kD :ulO l'_r: .ulCB~C':'-~a :GN UCllI=-5UP 3QHC l'lI!2lI::1t Y.'!tD.S ~ :-:'!.M :A':'t ''Zeal :-:1'~ . , , . , . r r . s ~'!Ol..n >.rF$~ ~ ~ nn.& MD -.;;w....~ riM (Unl . . , tarJ.t r.II:AL & O~T:OII n:zs ~ O~=OII COlT c:DInJ'tCAn~/loOI)n' Fa uoaoa PIZ AMPO/~urri.EllDTAL ~ eowrIltGIX:T IIPDVI ...... t'C'nL ':'In'AL DrlCDl'tIZlft' ::O,fTS SIn: ,.CQI1UITICII/~E COIlS'nl:OC':'1011 iUS =:NG ~/!':!flU<C:NG :.%:c.;L , :~.c.\Jr:.:;..:":ctl :"!:ts C-:HJ:R :'T.AL i'RCP05r:c '10 lr.'GA cot IoI!O:::rT .\110= ....'lII\IAL PAntDfI' :STERES':" un:: Sot;J;CE :F :;.sa ~BC s:~ Ac;~ISI~ICN ?OOL :I/NER'S :lIVES':"'.ElfT :':'IU:itS ;.':":';.~-:-s P.tKAB::':':'~:":CN iolOFUC ..tlU':%-l.""PS tST:1IA= ::=S':'S ANtI S;;PPORT :>OC:MElr.'S rllEI.:lCN7oIlY n.>.ns ~~::OI(S.\NO ACOI::IONS I "tsCR:r::CN :r ~~~ ~ eCHOI::::N5 :F rIlIAIlC:''l<:i , F:llAL ::~-: "'T':'''~ ::nu :F ":lIlINCI:/G :0C':ll':!:NTS I !, ts:I.'IA'I'! :>>' ::>>;S::'ll.t1~CN :I.~ n;llOtASE A='lI:lIT -1::"1 sr.:-I\ :V:CENCZ Of" ~!P..'1!Ssr/"'E ::::NI~C: , ....'1"{ 'l!:C!SSAAY "J.R;;.Na:S. t::c. 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RECULA'l'ORY ~ WITft BOaROIfD AND CITY O~ZA'1'ICB IXlCOHEln'S 5. ~IED AR'l'I1"'T.lI'.q OP INCORPORA'l'IClf 6. CZM'IFIED BY-LAIrS 7. CERnFIEO RESOLUTION OF BOARD OF DIRECl'ORS AUTHORIZING TRANSACTION 8. TAX EXEMPTION RULING r.E'I"rERS FROM IRS AND FRANCHISE TAX BOAlU) CONTRACTOR DOCCMENTS 9. BO~R - CONTRACTOR CON'I'AACT 10. PERFORMANCE BONO 11. FINAL COST BREAJ:DOWN BY TRADE 12. INSURANCE POLICIES OR BINDERS INCLUDING WORKER'S COMPENSATION, LIABILITY AND BUILDER'S RISK 13. BUILDING PERMITS IF REQUIRED 14. APPLICATION FOR FUND DISBUllSEMENT I CONSTRUCTION SCHEDULE IS. afflER - ARCHITECT AGPYF.lolENT (SUPERVISION AND DESIGN) OTHER 16. ~RO FORMA ALTA LENDER'S POLICY IN FAVOR OF PRIMARY LENDER AND CITY FOR AMOUNT OF TOTAL DEVELOPMENT COST 17. INDORSEMENTS TO ALTA INCLtJDING: A. 100 COVERING CC&R VIOLATIONS B. 116 COVERING STREET ADDRESS AND LEGAL CORRELATION ( AT RE-WRITE) C. MECHANIC'S LIEN GUAJWoi.L'dS ( FOR EAot DISBURSEMENT ) D. TAX SERVICE 18. 1\L'I'A SURVEY OF PROPERTY CER'l'IFIED WlTHIN 60 DAYS OF CLOSING 19. ESCROW INSTRUCTIONS 0 0 0 0 0 0 l1'l 0 .-l ~ N .-f 06.1 en l"'< ~ .-l I CIa .-f N M <q' ... 0 0 0 0 I 0 III 0 0 0 0 III 0 ,... r-- \D N C'\ .-l N M l"'< c: ~ 0 0 0 0 C) 0 Ii'l 0 0 0- \0 co 0 1 ~ \D III <q' 0 l"'< IJ I""f N M M r ... 0 0 0 0 . ::l 0 0 0 0 oi co M ...... C'\ an <q' M C'\ ~ 0 .-l N N M ..... "0 ,.. tot.., 0 0 0 0 s:: 0 0 0 co I!~ r-- C'\ "3" co .. M ...... r-- N .-l N N M :f5 0 '~ .:!l.'fi 0 0 0 \t) Ion \0 \0 IV)~ M r-- \0 \D =1 t"'I N en <q' C'\ I""f .-l N N ~ ;.::, ... 0 0 0 0 N Ii'l lI'l N 0 0- If) 0- M '- , , 0 r-- .-l \D .. .-l .-I N N } t, 0 0 0 0 0-4 0 If) [Xl 0 \D M .-l 0 , C'\ l1'l C'\ M ~. .... I""f N ~ 004 Q) 0 ~ . I:- .:! Rl'Q II \.4004 . 1 ~,g :s o. i ~ x. ) QJ o :s ID I ....0 c 0 .j...J ~ c ro = 0 ro l-I ID >- ''; QJ J lot l-I ) '0 'U :. QI 0 QI 0 tot :> ...:l ~ ~ .-lrhltn 'filii I 111 '.. ~~-'~"!",l',~~~;..1f.~~"'~ ""'~,~-~,._ ~::. -,' ~ '''I ":;, - . · . ~ . '" I', .. ~ . .... - .,.J-, . '''~1" . . ro;,: "", ~g~ - . r .... ~,. . -11 ; L .' . ,>, C, ,z.~j~, ;--,>~"t'" ;~}. ::." ,'f", ~:r CON'1'JlAC1,~'''O~ -1.:./ -: l' '~ F ~ ~~ ) .~~ AGRIEHENT THIS AGREEMENT, entered into on this day of December ,1983, by and between the REDEVBLOPMENT AGENCY OP THE CITY OF SANTA MONICA, (hereinafter referred to as "Agency"), and COMMUNITY CORPORATION OF SANTA MONICA, a California non-profi t corporation, whose address is 2219 Main Street, Santa Monica, California 90495, (hereinafter referred to as "Contractor"), is made with reference to the following: R E C I TAL 5: A. The Redevelopment Agency of the City of Santa Monica has carrIed out a the Downtown Redevelopment ProJect. B. ThIS Downtown Redevelopment ProJect has created approximately l,8g~ addItIonal employment opportunIties prImarIly for low-moderate Income persons. C. The Redevelopment Agency of the adopt~d Program GUIdelInes and Procedures for the City-WIde HousIng AcquisitIon and RehabIlItatIon Program. D. Contractor deSIres to provIde an affordable housIng acqlJISI tIon, rehablll tatloo, and management program pursuant to the adopted program GUIdelines and Procedures for the CIty-WIde HousIng Acquisition and RehabIlitatIon Program. NOW, THEREFORE, Agency and Contractor mutually agree as follows: t~ 4) Developer SelectIon CommunIty CorporatIon of Santa Monica (CCSM) is the non-profit developer recommended by staff to undertake housing development actIvitIes pursuant to the CIty-WIde Housing AcquisItIon and RehabIlItatIon Program for the remaInder of the fIscal year. ThIS recommendatIon IS based upon a technIcal assessment of the CorporatIon's skill and capacIty and the need for ImplementIng InstItutIons to achIeve suffIcIent scale to operate and manage projects in an effICIent manner. Attached for Agency approval is a standard grantee contract modIfIed to reflect appropriate provisIons of state law applIcable to redevelopment agency actIvItIes. Standard federal and local requIrements regarding grants management, equal employment opportunltYJ polItIcal actIvItIes etc., have been retaIned. The attached Agreement would provIde Commun 1 ty Corporation with $22,900 for operating expenses and $15,000 for deposits to InItiate transactIons.* The allocation for operatIng expenses IS almost exclusively for staff and frInge benefits, although a small amount IS requested for the development of accountIng systems necessary for ongoIng proJect management. The proposed budget will increase posItIons currently funded on a part time baSIS to full time is such that suffIcIent personnel will be avaIlable to carry out the CIty WIde HOUSIng AcquiSItIon and RehabIlItatIon program. *The proposed operatIng budget Includes FICA expenses for all employees, regardless of funding source. Please refer to a report prepared by the CommunIty and NeIghborhood SerVIces DIVISIon dated December 13, 1983, for a thorough explanatIon of changes In federal law regardIng non-profIt organIzatIons. 10 . .. JF;.' 1. , ~ 2. ~ 3. 4. 5. 6. .; ....- < ,.J~ --,*..ot:!f~ "j~ ,~,...- " t ' .'>:.'.' .~.[:; :~{"'. II '~,...~_.:.~~, ..... UllitiHf: to,': the " .... .. f6Uo~ingl Selection of participant. and .talf. U.e of redevelopment tax incre.ent lunds. Requirements for recordk..ping and reporting. Provisions relative to the compensation and working conditions of participants. Nondiscrimination requirements. Government Code Sections 7260 et seq. C. In addition, the Contractor shall allow the duly authorized agents, employees or servants of the Agency or the appropriate state agency to lnspect, during normal business hours, those records, books, documents, and other data which pertain to the program. 3. REPORTS AND RECORDS. A. The Contractor shall file each and everyone of the hereinafter described reports or records With the Agency on or before the deadline set forthhereln below; provided, however, that If the date of one of said deadlines falls on a Sunday, Saturday, or legal holIday, then said record 0= report shall be filed '.nth the Agency on or before the fIrst bUSiness day pr~cedIng saId deadlIne date. B. The Contractor shall submit a quarterly Program Status Report to the Agency, and saId report shall Include Information on the percentage of Santa MonIca residents served. ThiS report shall be delivered no later than the tenth (10th) workIng day of the quarter following ~he quarter for WhICh 1t 1S prepared. The format to be ut111zed 1n developing this report 1S attached 3 ,4j; ~~ 't"... ~ ~::',"" .~~: ':'~1' . ;;-,,:;~ <~'~~~"~~,J~~ '::~ T ~!,,~'::#J~, ':'''~~ ''t' ~\'~ ;..- ~,:'''. .YT '~'" 0:. "#'~{~'" ~", ,... ,;.\-;- .~ .... ,J." \. .:r; JUt; '~if ~,,~:y ;,i'e' '.J~ ".:,,~~~-,~'}' ,,'t ',~'~~ ~'<'"' _~_ '.~~ ,,~:,'._."~, '.:~ -~~.~ . ,_~~' ":",'f:'.: 'J"'b'''ft.to 'aa" l~hi1jl<t...,.c~ ".;," , ",!" 'f~ ~Y'; ;,;.- '~ -', ,-, J, 1:, ~~ ~:,., l'~ __to $'7". 1<Jr,;. ",~;o--..t~~~ -",' ~ ~'..- .11,.. ~ ~~ ~ 'It of'. .....'r -- ~...~'t ,..:;'- <;.'1. _' ~~ ,~_ . ~., t ~ .' c. Th~ Contractor',shall' aha submit a quarterly l'i.'ca1 , 1". ,. progre.. Report to the Agency, and ..id report sball detail the. program expenditures during tbe preceding quarter. Tbis report shall be delivered no later than the tenth (19th) working day of the quarter following the quarter for which it is prepared. The form to be utilized in developing this report is attached hereto as Exhiblt "0". D. In addition to the other requirements of this Agreement, Contractor agrees to provide any and all such other reports, books, records and other data as may be reasonably requested by the Agency. E. The informat1on contained 1n said reports, books, records and other data shall be subject to all appl1cable provisions of Federal and State law concerning the conf1dentlallty or dlsclosure thereof. F. Elther an origlnal or leglble photostatIc copy of each and every report, book, record, or other data prepared or supplled by Contractor In accordance w1th the terms and conditIons of thIS ~gteement shall be reta1ned by the Contractor for a per10d of at least three (3) years fol:owlng the term of this Agreement. G. The Contractor shall ful:y c~operate ~Ith any authorI4ed agent, employee, or servant of the Agency, City of Santa Monlca, or the State of Callfornla wlshes to Intervlew or communicate WIth any agent, employee, or servant 0f ~he Contractor durIng any normal ~uslness hours for pur?oses ~ontaIned w1thin thIS t\greement. -I ,..'~...,. ~ ,~, ,~-~ ~ ~W-' .....'~,..".... . .', . . . ' . ... ~,...~......... -.,..; ...~. -."" , ,cOol. l~""'" " .~ ~..] ... ;~~, T'l'-~"~ " '~ , . . ) oiSSO.SIMEN! Or.:PUWDS-A.o~PRba~ 10001'. . h < ~ A. The appropriation and di.bur.e~.nt of funds, the incurring of costs and expense. and other financial or accounting matters in regard to the performance of this Agreement shall be pursuant to the Grantee Budget, which is attached hereto as Exhibit ftB" and made a part of this Agreement by reference; provided, however, the Contractor shall not spend or incur costs or expenses of more than $37,990 of Agency funds in the performance of this Agreement. B. The Contractor agrees that the dollar amount budgeted for individual tasKS or prescribed periods as set forth in sald Grantee Budget are the maximum allowable, and no addltlonal sums shall be paid for services or Jtherwlse rendered by the Contractor under thls Agreement wlthout pIlor consent of the Agency. c. Notw1thstandlng any other provis1on of thls Agreement or exhlbIts hereto, should the Agency declde or deter~lne, after an analysis and evaluat10n of a:lY reports, records, or other documents flIed by the Contractor under th 1S Agreement, that an adJustment or 'TIodlficatlon of the Grantee Budget, including any portIon thereof, is proper or necessary due to a deVIatIon of the measured performance of the Contractor from the relevant goals or standards, the Agency may, at lts option and sole dIscretIon, make said adJustment or modlflcation upon glJing of written notice to the Contractor. the Agency shall confer wlth the Contractor prlor to lssuance of written notice of adJustment or modification. The Agency shal: be the sole Judge as to whether 5 'F'- ::bt:'rff' !i~', -rr. ,; , . :: ' ";'. ~-'" ~ ' ~-, . t~_~:-r,.,:...:,~ · ';'" '.~ 'y.' ~:., ~r." r . -. .' ~:-.; · ,~ ,'.~ -"'4-' ~~" :.:.~ "1;::; ~. ~1l .l. i~t -, ~ -. ~~: ;(i~;~~~.i~'enl:' ~~~,~ .od1f~catioD' i.:propJ. o~"'necie.~r~r~"t- ,:;:, ~(, ~ '~ .~' ...1:"',.; .... ~." -t. ~ D. l'urtherlDore, any uni t cost, or otherwise, .et forth .....-..1.... r-:;;;-, :0:'; ..;,.,2': ~* '~-rT,'\.~ ~~.:. ....'~ ~~-.. - J~ .:' ~.~ i ~ ~-;#f': :: fn ,:- the exhibit. to this Agreement lIay be adjusted.-by the A9.ency if (a) the period of operation is Ie sa than the period specified in this Agreement, (b) if the number of participants or geographical area to be served is adjusted, or (c) if any other amendment or modification is made in this Agreement. 5. PAYMENTS TO CONTRACTOR. A. A lump sum payment in the 'amount of Sl5,QQQ will be advanced to the Contractor withIn lQ working days of the execution of this Agreement and shall be expended In accordance WIth the approved llne Item budget. The remainder of the funds wlll be advanced on a quarterly baS1S after analysis of cash on hand and projected expendltures for each quarter. B. All compensatlon for thlS Agreement shall be paid by the Agency out of funds allocated to the Downtown Redevelopment ProJect Low and Moderate Income Housing Trust Fund, and shall not be a charge upon the General Fund of the City In any manner. 6. INDEPENDENT CONTRACTOR. The Contractor is an independent contractor and not an agent, employee, offlcer, servant or otherWlse of the Agency, and shall, at Its sole cost and expense, comply With all laws, rules, ordlnances and regulations appllcable to thiS Agreement. 6 ~i!lI'~""~~~.i't''''''''~-<':~~''"SifiIJ' 1II!f~ fl'i ,-~~ ' . ~[~;~ J'"" .l .,....... . · · ...-, . 'i{ -.. .'. .... a. - .~ " -"J:j" ~~--t..- ;:~.:, . 4 "la'''" ~- , '.. -'" .'~: ~-r:.- I ~ ?u '~.>l ~ ~.""';j,,< flAl'" ...... l"~ 't,~l;'.o-r: -i .~. 1 '.. or, _,., ~c::.. 1i''J!f: ~i~ ,p~L(cii\A;~!ii~s'~" . .' r,~" _~V ",~ / l~ -':~. ;t;' "c11tr'a"ctor shall in~lcat. In any pr... relea.. -'or ' , \ ~ state.ent to the public related to the program funded under this Agreement that it is funded by the Redevelopment Agency of the City of Santa Honica from the Downtown Redevelopment Project Low and Hoderate Income Housing Trust Fund. 8. INDEMNIFICATION AND HOLD HARMLESS. A. Contractor shall 1ndemnify and hold harmless the Agency and City of Santa Monica, their members, council, servants, boards and commissions, offlcers, agents, and employees from and against any and all loss, damages, liability, clalms, suits, costs and expenses, whatsoever, lncludinq reasonable attorneys' fees, regardless of the mer1t or outcome of any such cla1ffi or suit, arlslng from or ln any ~anner connected t~ the serVlces or work conducted pursuant to th1S Agreement. 8. The Contractor agrees that all !?artlCl!?ants 1n the program asslgned to or employed by the Contractor ln 1tS performance under thlS ~greement are agents, employees, off1cers or servants of the Contractor and not the agents, employees, offlcers or servants of the Agency; and 1n th1S connection, the Contractor shall, unless spec1fically exempted by law, malntain approprlate Workers' Compe~satlon lnsurance coverage for each and every sald particlpant l~ the progra~. C. Pursuant to Sectlon 895.4 of the Callfornla Government Code, 10 the event that the Contractor lS a publ1C entlty, the Contractor shall contr1bute and lndemnlfy the Agency upon any 11abillty ar1sing out of ther performance under thlS Agreement. 7 It, .,"!~;i-1f.i.:~' . ~. ~I'"" ..7::, .' "fl~,..-~, -, . .'(':....J....r! ~, '~Q.a- .~ "~ ... "' i. ." J.;.... i. :Q!' ;~ ": :k:~~. ~ ~ .~~ ~ ." ';)J.' '- ". ~~~; ~:_.,~ Agreemant, ; ;;. ';it ,;i -.. -tJ ~~...~..",-.~", -- ....t. <.,\,'-" ~..' ' ." "t.""? :~ "-'I .... ...~. . , " J ".' , "" ' " '0' '''t<. .c 9". _. I NSOIAllCI. ,. ~ I _ I - t".. , , . On ox befoxe the commencement of the term of this Contractor .hall furnish the Agenc.r with certificates shoving the . type, amount, cIa., of operations covered, effective dates and dates of expiration of insurance policies. Such certificates, which do not limit Contractor's indemnification, shall also contain substantially the following statement: "The insurance covered by this certificate will not be cancelled or materially altered, except after ten (19) days written notice has been received by the Agency and City of Santa Monica." It is agreed that Contractor shall maintain in force at all times during the performance of thIS Agreement all appropriate policies of insurance, and that said pollcies of insurance shall be secured from a good and responsible company or companies, dOlng insurance business In the State of Callfornla. All such insurapce shall name the Agency and the C1~y of Santa Monica as addit10nally insured. Contractor shall malntaln the followlng lnsurance coverage: A. Worker's Co~pe~~~~: Contractor shall provlde Workers' Compensatlon lnsurance and beneflts, and/or medical and accident coverage as reqUired by State and/or Federal law. B. ~~!:.,U..!. ty Contractor shall purchase Insurance: l:ablllty lnsurance in the amount of Clve Hundred Thousand Dollars (S500,iHHl') comblned Single llmlt for all llablllty for personal lnJuries, death, property damage, and, if reqUIred by the Agency, comprehenSlve auto llablllty, professlonal llabIlIty or lncldental malpractice Insurance to protect the Agency, its offlcers and employees against llabllity resultlng from any negllgent act or omlSSlon of any offlcer, agent, or employee of 8 . r .,' ~"'" '<<t ~...~'~ ~~'" ",' J~1"""'~ -. ' ~ .,.-~ .. ;";~!P?' ~:, ~~'lI!t ."- .:.. ..., ~~./ ~~.. "~~ ,. .!-r.:,"t,.. '<-::: ~~- . . .... I'>#~ ~ ,. l;.I." . f. ~~~ '~! ..~~ "/i' '\<.;.- 11~ ""1t."'~~'.' ~t. ;:!;~~'4.~!' ~'~: ~_._,1 '~~ ~~ ~JJ..' ....t..~_:.~ -4-~...iJ}. ..'f.i~ -~-.."~ "~~i'! ~ .~~: ~Z",' ~~.'.- ;;" .'~ ' . . - ~ " . ~";. ,f~l"" ~ ~. , 4 ,.:~ ,-', 1$'.; '. :.. . '1-" .~. -u:" +1.,' .~ "" ~. ~ ,'....,' ',.', 'lor ,', "~' .~ ~r- A the Contractoz:~"in. the pet-formance of thb, Agn.:a.n~ or trol\l.-th!.S Y '.r,~ ....... c ~ " condition o~ any property owned or controlled by the Contractor uSed in the performance of tbis Agreement. C. Crime Coveraie: Contractor shall provide 4 comprehensive crime coverage policy in an amount no less than Twenty-Five ; Thousand Dollars ($25, 'HHI) i nsur i n9 aga i nst loss 0 f money, securities or other property referred to hereunder, which may result from (a) dishonest or fraudulent acts of officers, directors, agents or employees, or (b) disappearance, destruction or wrongful abstractIon inside the premises of the Contractor while in care, custody, or control of the Contractor, or (e) sustained through forgery or alteration of checks, drafts, or any order or dlrection to pay a sum certaIn of ~oney. D. Subr09ation WaIver: Contractor agrees that in the event of loss due to any of the peclls for whICh lt has agreed to prOVIde l.nsucance, that Contractor shall look solely to Its insurance for recovery. Contractor hereby grants to Agency, on behalf of any Insurer prOVIdIng Insurance to eIther Contractor or the Redevelopment Agency of the City of Santa Monlca wlth respect to the serVIces of Contractor hereln, a waIver of any rIght of subrogatIon WhlCh any such lnsurer of saId Contractor may acqulre agaInst Agency by vlrtue of the payment 0: any loss under such insurance. 9 J. '~K:"t<'i\l""'f'\~~'" ,." ~ ~~~;V' . ,1 ~,.~ ~ "~ "J> ' ';f/t. "?;~ "?'~, '" ~ .'t,' ': t \~\ .I.,;'J ...)~ ;1.i';" , f'-.,'t"t" ,:::., i~ "~~".., ,'1.:' , -.x- "'. ~: ': <--iii~ q'''. ,~. .<A<l' ,', '.. '1'7':: " " ~ . }';:ttu~it'd~ .~lrr-,!i?€:nri Q: '~~tt.dl,titfujfli'~ l.- ". J.\l-. "t 't., 4., II ,-\ ~-O: .~.,.) :J: ifT/ .ft. ~t .:~ ~;~. ::i~":-? 1~ ~ ,~ ;~y"t~~1I h'.~~Of) ihouleS taU t6 .'~i;di:'l)." 'Ii.-i'ri'~aln t,it. lo~.g~ln~t" 7' :",:"~ ~~~!~ l~~ur.~c., Agency shall be perllitte4 ~o ~btain .pcb; i~:uranc. i~~ ~~~ ,_ ~ .. ~ I . ". '1 the Contractor's nalle or as an agent of the Contractor and shall be compensated by the Contractor for the costs of the insurance premiums at the maximum rate permitted by law computed from the date written notice is received that the premiums have been paid. F. Additional Insured: The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under this policy if not named as such additional insured; and an additional insured named herein shall not be held liable for any premium or expense of any nature on thiS POllCY or any extenSion thereof. Any other insurance held by an additlonal lnsured shall not be requlred to contribute any thlng toward any loss or expense covered by the lnsurance provlded by this POllCY. Proceeds from any such pollcy or policies shall be payable to the Agency pr1marlly, and to the Contractor secondarily, If necessary. 10. PERMITS AND LICENSES. Contractor, at 1ts sole expense, shall obta1n and ma1ntain dur1ng the term of th1s Agreement, all appropriate permits, llcenses and certifIcates that may be reqUIred 1n connectIon wlth the performance of services hereunder. 11. PROHIBITION AGAINST TRANSFERS. Contractor shall not asslgn, sublease, hypothecate, or transfer thls Agreement or any lnterest thereln dlrectly or ind1rectly, by operat1on of law or otherWise without the prior 10 "'~""~'-'lIf"1~~~~'~""~~'~TVf' '(1JW'-'!~~ ~~'df~' ... rn.' I,,:;. uitjrj-"" .'l.- . i ~ /.." ",'" \ ~ ~ - ~T -.;s1.... --;i:~ ..-.... t .. ,. "';1'_ ";...:...~t' 1.;' '~,:: .' "~,~. ~~~'~ , k,':3~.; ~: ~'!fif: ',' ,f:'.~il ~ti~(~~~,An~~ 6t~t:Hl A~~nciYJ ,~I~;~.6~t~~~i ..it.1Ij~.t ~j1j~ ~1f .' . . .~, . =r:.>f" <, ~f~ ','" ~' . ~ ~ ~p', t , '. ~ .~:t~.,o;:) '""4} l,~ . .,........., -'f,~:::-'::, c1n.e~t '.h~):l be' null and void, .nc! arty' "aI~n.i, ~i~b't...t'..;', ~~. hypoth.cat.. or tranlfer.. Ihall acquire no right or intereat by reason of such attempted assignment, hypothecation or transfer. All appropriate provisions and requirements of this Agreement shall apply to any subcontract. 12. NOTICE TO AGENCY OF LABOR DISPUTES. Whenever the Contractor has knowledge that any actual or potential labor dispute involving clients or other employees is delaying or threatens to delay the timely performance of this Agreement, the Contractor shall immediately give notice thereof including all pert1nent informatlon with respect thereto. 13. TITLE TO MATERIALS AND WORK. T1tle to all material acqu1red from payments made under th1S Agreement or produced by the Contractor 1n tne performance of th1S Agreement shall vest 1n the Agency. 14. COPYRIGHT. No mater1al produced 1n whole or 1n part under th1S Agreement shall be subJect to copyr1ght 1n the Unlted States or in any other country. Unrestr1cted author1ty to publ1Sh, d1sclose, distribute and otherwlse use, 1n whole or 1n part, any reports, dat3 or other materials prepared under th~s Agreement vests wlth the Agency. il ~, ..'&'c '7~" l6. NONEXPBNDABLB PROPERTY. An inventory shall be maintained for each item of non expendable property acquired with funds provided under this Agreement. Nonexpendable property shall include tangible personal property (Including but not limited to office equipment) costing One Hundred Dollars (Sl~a) or more per unit and having a useful life of one (1) year or more, real property and any Intetest In such real property, and any mortgage, trust deed, or other encumbrance of real property, and the funds received from the sale o~ any such encumbrance of real property. The condItIon, loca':Ion and dISpOSItIon of such nonexpendable property shall be reported to the Agency annually, USIng a format ptovided by the ~gency. In case of the program's termlnatIon, the Agency reserves the rlght to determIne the flnal dISposltIon of saId nonexpendable property, IncludIng funds and/or any other asset der II/ed thereftom. Any utILIzatIon of funds from such an encumbrance or other dISPOSItIon, lncludIng the sale of nonexpendable property, must have approval of the Agency and otherWIse ~omply wIth the federal regulatIons. ContraC1:or shall have the optIon to purchase such equIpment from the Agency, wIth the proceeds of such sale to rel/ert back to the Agency and the Downtown Redevelopment ProJect Low and Moderate Income HOUSIng 12 '.> ~!,f,j'~' ~~{"~ : '"'>r" . ~ 11~--~:'1.("'-t ~. ...t~. -s......'~ I "1' '1'\ ",,"""J " .".. ...- .~: ~"".- ..._ -... "!I I - ~ _ J -, . ":::,. ._' \ i:~.:.~'l ~~.. ,:'. ~ 'tj I ~~. 7 ~...''1'' ~ ~ ~ ~ J". LI .. ( '~4...... . ~~ ... 'r ~ "l "-"f~ ~ ~.. ~ ~f:j~~';1 '.~ J.... I"t,....... r.... .,.. ~ ~ ~ 1'-': '''. ., i .,' , '; ":!:[" .. J jr)., '.~ ~~ obfain at l.ast three (3) 'doeullent'id ;.: \. '. \ '" .~.;,~~. \.t1,~~~e. .&n4 the prior written ~PPl'oval of the, Agency prior to { . purchasing equip~ent over One Hundred Dollars ($199) per unit in value as approved in the budget. Equipment purchases approved in the budget and approved by the Agency shall be initiated no later I t!-,t 0" than the second quarter of the program year, except under special circumstances with prior approval of the Agency. The above provisions apply to leasing as well as to purchasing equipment. 17. RECORDS AND ACCOUNTABILITY. A. Records shall be maintaIned in accordance with the City of Santa Monica Contract Accountin9 and AdminIstrative Handbook, attached hereto as ExhIbIt "En and wlth standards of grantee financial management as speclf1ed 1n OHB C1t:culars 11.-87, ll.-HJ2, II.-IHJ and 11.-122. B. 11.11 expend1tures shall be supported by properly executed payroll, tIme records, 1nVOlces, contracts, vouchers, orders or other account1ng documents pertaInIng 1n whole or. 1n part to thIS Agreement, and shall be clearly ldent1fied and readlly access1ble to Agency and state personnel or the1r agents. c. The Contractor agrees to an audIt conducted by an lndependen: audlt fIrm ~o determ1ne, at a m1n1mum, the f1scal integrlty of f1nanc1al transactIons and reports, and the compl1ance w1th laws, r.o>gulatlons and adm1n1strat1ve requI rements. Such aud1ts may be scheduled w1th reasonable frequency, usually annually, but not less frequently than once every two years. 13 an4~r.comm.ndation.. ~ :' .."" -4-' ,:;..1..... ...~ ~ . D. Contractor agrees to accept responsibility for receiving, replying to and/or complying with any audit exceptions determined by appropriate Agency, City of Santa Konica, State or Federal audit agencies occuring as a result of its performance under this Agreement. Contractor also agrees to pay to the Agency, within thirty (3~) days of demand by the Agency, the full amount of the Agency's liability, if any, resulting from any exceptions to the extent such as is attributable to Contractor's failure to perform properly any of its obligations under this Agreement. The obligation to relmburse the Agency for any disallowed expenditures or misuse of funds shall survive the termination or explratlon of this Agreement. 18. RETURN OF NONEXPENDED FUNDS. In the event Contractor 15 advanced any funds pursuant to thls Agreement, Contractor agrees that upon completion or termlnatlon of this Agreement, any unexpended funds,or funds not irrevocablY commItted to the program, shall be returned to the Agency wIthIn thIrty (30) calendar days of the Agreement eXplratlon or termlnatlon date. 19. ~TAFFING REQUIREMENTS. The Contractor shall prOVIde Job descrlptIons for all posltlons under thls Agreement. the Contractor shall hire and employ under thIS Agree~ent only those posltions llsted in the Grantee Budget. The Contractor shall not change the Job 14. :. ~;-. .... t6 the Agency for written approval , .... .')1....9'1.~ the name and qualifications of any parsonnel hired to fill a position designed to receive a salary under this Agreement of Seven Thousand, Five Hundred Dollars ($7,5~Q) or more per annum, whether totally or partially supported by funds provided under this Agreement. Such approval shall not be withheld except for reasons pertaining to Sections 29 and 22, herein, or as required by an appropriate State or Federal agency. 20. NEPOTISM. Contractor shall not hire nor permit the hlring of any person in a position funded under thlS Agreement If a member of the person's immedIate famlly is an elected official of or 15 employed In an admInIstratIve capaclty as an employee of the CIty of Santa MonIca, or 15 an employee of the Contractor or hIs/her subcontractors. For the purpose of thIS sectIon, the term "ImmedIate family" means WIfe, husband, son, daughter, mother, father, brother, slster, brother-,tn-law, slster-ln-law, son-lO- law, daughter-,Ln-law, mother-in-law, father-In-law, aunt, uncle, nlece, nephew, The ter:n stepparent and stepchIld. "admInistrative capaCIty" means persons who have selection, hiring or supervlsory responslbllltles. 15 ..- <~; " ... or acquire any personal, financial or economic interest, direct or indirect, which will be materially affected by this Agreement except to the extent that he/she may receive compensation for his/her peformance pursuant to the Agreement. For the purposes of this section, an economic or financial interest includes: 1. Any business entity in which the person has a direct or an indirect investment worth more than One Thousand Dollars CS1,909) ; 2. Any real property 1n which the person has a d1rect or ind1rect Interest worth more than One Thousand Dollars (Sl,"""); 3. Any source of 1ncome, loans or glfts Wh1Ch, when comb1ned, are worth Two Hundred Flfty Dollars ($25") or more 1n value recelved by or promlsed to the ~erson wlthln twelve (12) months prlor to the time this Agreement was executed; and, 4. Any business ent1ty 1n whlch the person lS a director, off1cer, partner, trustee, em~loyee, or holds any posltlon of managemen t. For the purpose of th1S sectlon, dIrect or 1ndIrect Interest means any Investment or lnterest owned by the spouse, parent, Chlld, brother, slster, father-in-law, mother-In-law, brother-In- law, slster-ln-law, daughter-ln-::'aw, son-1n-law, or the person, by an agent ~n hls/,er behalf, by any buslnesss entlty controlled 16 rm-B~ - J;- ,~ .~. II" ,{~ " , -" .. .'" ". =, iit. .. ":'1\' 1/.....( Ii" ...~.:, , .~_iJ.{; . j.- :iIf" ,..;yt f' ~ . ~ ;:(.: -It ~~'b ~ :,!.-.j ~!. ~;, ,~~ ,: 1.,' ~,~\, ~,!. ''!>l!.-<)J, '~ ;. ,-:,. ft:.~. ", ..:;,; '. ~.' ~':t~ '~t I -a:- .~ I ~~ ...; ~ t 4 . - '';' ... : -,,~ 4"1.:1 .:' ~ ." - "-~'!,f.! .'t" ~ "'~' ",:...' . .f~,~~:, ~lk,,~ ~ .I"'" of" . ~1.f"1::.": ~... <" ...';. ~..,. .. .... t - ... ,.11.....-;' ":.i~'-J. ,'-;; .l ~ '. ....... _ ; ~ ..... s~*ti.i' ~. , c.'1" H-''''rilDl..~= ..curl' =.qt;1."~' '1nftIraca-c:Warqr :PU!Dti"-1-~1 1: i:l ~~~C. ~" ~.~Ct~l;~ .=ac:j ,ari04. . -Ii'. S\:bccm=.ct~. ~: 1:IIed1a:lly notL-, :!:.a Ci.:y we reqU:t:-a4 ~mc. :U :n'Oked. vic~-&lm. or caar~ ~.. made tn.:~.c:1ve. (10.013) Ius'\:.Tane. sba.ll ~c.lu4a at e:u!~'t'seme: ~~-I dl. City of Santa Monica .. a&!.itio~11 i:1Rra4. '~..... "'J;l ... ~ c'l. ~ (10. Dl2) Cll. Cl) (11.011) ?:-ot)er~ M&:.&2emc': , , (11.012) (11.01:3) (11.014) n.!..015) (11.016) (11.017) The S~con't::&c:'t:~: .h~1 a.ss~ x-urousibill:y ClC accO\m~abiliry fOT :he ma.i:lem&:1ce of all uo:1- axpendable prope:ry pu:Ch&s&~. l~ased. 0: :~'t:.d vi:h p:'o~zm ~ds. Non-expend.a.ble prop~=~ 'is de:~ec u eny :z::g~~le personal p:operry cos~ini $100 or me:e per ~i: anci ba.'......ng a us~. lUe of mcr~ ehan 0:1& ~.u. Teal prope~ End any tn~e:es~ ~ sueh re&_ prope~.5~~ as . :o::.&6e, e~~ deed. 0= o~be:- e:1C'HY7Il-.rc.ce of real prcp~r:y. &:.c the ~cs :eceivec froc ~he 5&le 0: Er.y other dis?os~~ion 0: &:y ~c~- e~~~~c&=le p:ore:~y 0= i:~e=es: :he:eo~. ACq\:.i5~':iou 0': non-expencable p:oper:y :i:~c ~a': vere no~ l~s:ed ~ :he app:oved co:~r&c: :eq~=es an execu~ed eo~=ica~ion :0 ch~5 cor.:=~c: to p:ovide ehe ~ecess__-y ~es. Unless approved by ~he Ciry ~ ~~:ing. ~o~- eX?endab1e p:cpe=-=y sha.ll ::10~ be ordered or p~:chased by ~he Subcontractor du:-ing ~he 1as: ~~:ee mcr.:hs 0': :he contract pe:~od. The Subco~:=ac::r sh~ll ~aint~i~ ~ ~~-to-~a~e ~-ven-o-. ,~s- c& .'1 nO-_A~e~~-~'e ~-~pe--v ..6 _ .I..<(/"fI --. - - ... - ~-r .......-- r-...... ~... it~~~ :0: ~~~c~ he ~s =~s~ons~b:e. =~e so~:ce 0: :~di~g :0: eac~ asse:' sha~: be no:ec. :he S~bcon':=acec: shall report p:o=?::y, ~~ ~~i:~~C. t_c_tbe_C:.:y..... ~" ~~ c:.:es-o:-bu:-gl-a:-y, l-cr..~, J~&e. o~ des~~~cticn 0: nc~-eT.?&r.dable p:o?e:~y. !he :&?or~ shall con:a~. a: a =~~~ i:e~ ider.:~:ica:ion. :,eco:ded value " facts rela:~ne to less. and a copy 0: ehe law ~:o:~e=er.: agency :epo::. A p:o?e=~y ~~ve~:c_! ~~s: be :3ce or.ce a yea:. - ,,:~~l~:.~~;'f?' ~'.~~;., ,:",;;J:l :t~"l '~, .~; 't -r: ~; 1"", . ' , .~~:.. . "i1i~~' '~m' '? ~'i;" . '<l~~r~:'R~ '.'tt ' :(.~it:~, iftuJ~.' ~./ c lo~~;t'Gl the1*ou1ing' and r ;L.iop~~&f "C{~f' . ~,/'a'., .3fJ 1 ~'..".'- , . - , . . . ''';' ,,-;:' " .~ " '";t~" ~ _' .l;-'-:4t(;.' r' . . , . ..: ":!' ~~ -.- , ,,-.t '''r ~ '~~'lc!,!~,"'~t.ql,1i,~~ng. tl}a t!to:, t~" ~., teat .z~.ncS!"f.f.. ib ~~!..., .~,.,:. opportunities for training and ..ploy..nt be given lower-inco~~ ,~ residents of the program area and any contracts fo~ work in connection with the program be awarded to eligible business concerns which are located in, or owned in substantial part by, persons residing in the area of the program. D. In accordance with the City of Santa Honica's Women and Minority Business Enterprise (WHBE) program approved by City Council on March 8, 1983, Contractor agrees to review the City's WHBE Library of Directories and Minority Vendors List and consider such sources in the procurement of equipment, material, supplIes and professIonal serVIces and to the greatest extend practIcable assure that women and mInorIty bUSInesses are soliCIted when they are potential sources. E. If Invol'Jed in the implementatIon of a dIrect benefIt actIVIty, Contractor shall compIle semi-annual statistIcs WhICh i~dicate the number of direct beneficiarIes In the followlng categories: Very Low Income ("-59t of L.A. County Median Income), Low Income (51-80\ of L.A. County MedIan Income), Medlan Income (81-199% of L.A. County Median Income), Moderate Income (1"1-12(3% of L.A. County Median [ncome); White not HIspanic, Black not HIspanIC, Amelcan Indian or .\laskan NatIve, Hispanic, .\Sldn or Paclflc Islander; and Female-He~ded Household. 18 (; s~uawn~Oa DUlS01::J UPO~ pa~~aJao JO ~sI1~~aqJ :3 (L aDed uo pa~ua~aJa~) s1o^a~ ~uaH a1qpp~0;JJIl :0 WP~DO~d UOT~P~11lqE4aH PUI? uOL:qs~no:JV DU1snoH ap1M;;:~I;) - U01~1?:J11ddV :;) ~uawaa~DV aseq:J~nd I? U1 u01sn1~uI ~O] SUOI~IPUO;) a1dwes :8 ~d1a:JaH ~lsodaa pue ~uawaa~DV aSP4~~nd 1eT~uaPlsaE :V :s~uawq:JI?~~V 4~1M (9 aDed uo pa:JuoxaJa~) sau11ap1n~ wp~50Xd U01~e~T1"qeqoE pue U01~ISTnO~1l DU1snoH apTMX~I;) - 8 ~lql4x3 "(v e5ed UO pe:JueX8]8x) ~:JedillI 6u1snOH lEd1:J1unW aqili :e:JtUOW E~ues Ut ~uewdOle^eo Ite:+aH - 'Ii ~tqI4X:3: :~~odeH J]e~s U1 po:Jua~aJaH S~1q14x3 "(; ~a6pn8 6uI~exado pasodoxd - ~:JE~~UO;) ae~UEA~ pAEpue~s - puna: ~snx,1 5utSnOH 6ul4s11qE~se ;;::Jua5v ~uailldOla^apaH ;;:q u01~nloseH - pUnd ~sn~ili 5u1snoH 5U1qs11Qe1sa l":JunoJ ;;:~TJ Xq uOT1n10saH - (;'vn:u: epo;) X~aJES "1 4~lEaH :aA X:JuaDV ~uewdOle^8paH ;;:q uOT~nlosaH - :le^o~ddll AOa: "1 ~a61 '[1 H18W1;)30 (;-;);)/Vd W3:.LI J,HOd3d a:a:vJ,S Oili SiliN:3:WH;)ViliiliV -~~~~-=.~,...-------....--_-......--- ---- _~Ii",--~ .s provided for in this Agreement hereinbelow. IL this Agreement Is 80 terminated, Contractor shall, within five (5) days from receipt of notice of termination, give notice of the termination to all other parties he/she has subcontracted ~ith for services in furtherance of this Agreement. 26. NOTICES. A. All notices, demands, requests, or approvals which are required under this Agreement, or which elther the Agency or Contractor may desire to serve upon the other, shall be in writing and shall be conclusively deemed served when delivered personally or forty-elght (4B) hours after the deposit thereof in the Unlted States mall, postage prepaid, registered or certIfIed, and addressed as herelnafter provIded. B. All notices, demands, requests, or approvals from the Contractor to the Agency shall be addressed as follows: Redevelopment Agency of the Clty of Santa MonIca Department of Communlty and Economlc Development 1685 Main Street Santa MonIca, CA 904GI C. All notlces, demands, requests or ~pproval$ from the Agency to the Contractor shall be addressed as follows: Community Corporatlon of the Clty of Santa Monica 2219 Main Street Santa Monlca, CA 90405 20 ~"-.:. .....j ", ~ ' , ", l t HousIng Trust Fund, and wIll Involve the provision of the predevelopment and long term support for a non-profIt developer. Because operatIon of thIS program will In~rease staffIng requIrements of the recommended developer, CommunIty Corporation of Santa MonIca, a grant for salary and related expenses In the amount of $22,900 IS included In the staff recommendatIon for the allocatIon of Trust Fund resources. Background In the FIscal Year 1983-84 budget the Agency approprIated $300,000 from the Downtown Redevelopment Project Fund for hOUSIng actIvItIes. ThIS approprIatIon IS shown In the budget as LIne Item 16-200-263-126-660 and IS IdentIfIed as "Development of Replacement/Low-Moderate Income HOUSIng." More recently, the CIty CouncIl conceptually approved a menu of housing programs entItled, "Affordable HOUSIng Programs for the City of Santa MonIca" WhICh Included a programmatIc mechanIsm to assure the affordabIllty and avaIlabIlIty of hOUSIng for low to moderate income households VIa acquiSItIon and rehabilItatIon of existIng hOUSIng by non-profit development corporatIons. ThIS report seeks to 'marry' the budgetary and legal authorIty of the Agency wIth preVIously approved program structures desIgned to serve the labor market WhICh forms the maJorIty of the Santa Monica Place workforce. The fIrst sectIon of thIS report dIscusses the Agency's authorIty to pursue ItS hOUSIng ObJectIves, the second presents the proposed program structure and gUIdelInes, the third descrIbes recommended fundIng allocations, and the fourth section relates to developer selectIon. The report concludes wIth a 2 t ~~ B. No equipment, materials, or premises acquired, donated or designated a8 a part of the program under the terms of this Agreement may be used directly nor indirectly for any religious or antireligious activity during program business hours. 31. PO~ITICA~ ACTIVITIES. A. Contractor shall not expend any funds proviced under this Agreement nor use or cause the use of staff time, facilities, premlses, equipment, materials or supplies which are provided or designated as a part of the program funded under the terms of this Agreement for any politlcal purpose as hereinafter deflned. Polltlcal purpose is defined as partlcipatlon ln, or lntervention in (lncludlng the publishing or dlstlbutlng of statements) any polltlcal campalgn on behalf of or ln Opposltlon to any candldate for public offlce or any partlsan or non- partisan electoral activity, including but not llmited to: 1. sponsoring or conducting candIdates' meetlngs; 2. voter regIstration actlvIty 3. voter transportatlon 4. any partlsan or non-partlsan actlvlty deslgned to pass or defeat any initiatIve or referenda 5. clrculation of petitlons to quallfy lntlatlves or referenda for local or state ballots. 22 , ~l-''''''''''''~ r "'..? .""!~~~"'~;~'; , ~>t . ~ : ~~... ~~'='!:.~'~'.q' ,t~ ,. -~' ;it ;. ~.-' < J. '-'f' i~' i' -itt: ~';J' 'l"~ . /' $-". "'''i''~ 'Jl, :B'. '~bltrtc~A~"h. 'i~.' ".~~. t. ;~~., i"~t l~oUd,i;{{I.'~le~'.: " " ","",. t-.~1.t'k"'~' .~1 ,~~ .r, '-I~. ',' .1M, "r''' :'!' .P.:; , ~..;:F'~ .,~ _,.. J:.6i1nt loit-trlnaPbr'fa't"io'n' ~'ot i.r4e-acai. pg'1f1ic[" Yo! .. '> ':....ltt- i.,.t. 1- ....;;.. ~ 't;; " ".. .', ,us..bU.. tor the purpo.. of influencing public bo4iea regarding" ~ ~ .,..... , ...~ activiti.. funded under this Agreement. C. Contractor shall not expend any funds provided under this Agreement nor use or cause the use of staff time, facilities, premises, equipment, materials or supplies which are provided or designated as a part of the prgram funded under the terms of this Agreement for lobbying activity that is prohibited by Section 5Gl(c) (3) of tbe Internal Revenue Code or by regulations and legislation set forth in Section 2 of this Agreement. The Agency shall provide Contractor with the City of Santa Monica's administrative instructions regardIng relevant Internal Revenue ServIce Code definitations and provIsIons. Contractor IS Independently responSIble for ComplY1ng W1 th all statutes and regulatIons. 32. CONTAINMENT OF ENTIRE AGREEMENT HEREIN. This Agreement supersedes any and all other agreements, eltber oral or 1n wrItIng, between the partIes hereto with respect to the subJect matter of this lnstrument and contalns all of the covenants and agreements between the partIes W1th respect to such SUbJect matter In any manner whatsoever. Each party to thIS Agreement acknowledges that no representatIons, Inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of a~y party. which are not embodied hereln, and that no other agreement, statement or 23 .i$ =..".. ~ ... .f ;~ Izcept .a otherwi.. provided for in this A9zeement, any ) amendment or modification to this Agreement will be effective only if in writing and signed by both parties. 34. pARTIAL INVALIDITY. If any provision of this A9~eement is held by any competent court to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force and effect. 35. WAIVER. A waiver by the Agency of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver or any subsequent breach of the same or any other term covenant, or condition contained hereln whether of the same or a dlfferent character. 36. GOVERNING LAW. The valIdlty of thls Agreement and any of its terms or prOVIsions, as well as the rIghts and dutIes hereunder, shall be interpreted and construed pursuant to and In accordance wIth the laws of the State of CalIfornia. 37. INTERPRETATION. The terms and condl~lons of this Agreement shall be construed to their plain and ordinary meanIng and Shall not be Interpreted against the maker. 24 " there condition.. 39. ATTORN!! PSES. If ~ny action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret this Ag%:eement, the prevailing party shall be entitled to reasonable attorney fees which may be set by the court in the same action or in a separate action brought fo%: that purpose, in addition to any other relief which it may be entitled. 49. TRUST FOND CANCE~LED. This Agreement shall immediately terminate if the Downtown Redevelopment Project Low and Moderate Income Houslng Trust Fund or any portion thereof is cancelled or otherWlse terminated. 25 ~ ~ .,'!<-,':. . '"" ,'* ~~.~ ., BY John H. Alscbuler, Jr Executive Director APPROVED AS TO PORM: Robert M. Myers City Attorney CONTRACTOR: a Callfornla non-proflt corporation BY 26 -r- L..~ ~ ~ % ';" t - .. ... .. - ~ " ~ I': - r. ... :; ;;; - .. .: . r: ~ r. ~ .. ,...,'I"'r...., wi - ,'.\ I~ i~ 19 ~: 1= :> , IUl I Illl ~ 0. n ~ 1-" .... III ...... I .~ I ~ Ig ~ U> .., oD 8 ~ , ... .- , '" . 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P\:--PC.. o~ this b~ok is too ..ta!:llish accCUllt.ing. 1nternU co~t.:ol, financial reporting. and ecn~acto .~~~(.t.:atien .t.nd.~. !or Subeoftttac'tC:s vbc con't:aet with the City of Santa Monica. c' - The .ccou::~C;. i=toe..""nal ecr:t.:cl, ~ :epc:'tin;- pri:1c~ples p:'e.~t.ec! a:. ~undamenul anli are not i:.ltenlied to r.place aecep~le enst.i:1c; procedures anli !i:l.Aneial c:on-:;:ols er precl:Jc!e ~e use e~ mere sop!ds- ticatel! financial account&bility ~ reporting m.'th~.. Inst.ad, the f~~~~nt.al r.~irementl represent ~imum proeeliu:e. an~ con~-ols th& t. must be .",hoc!ieli vi thi:1 eacb Subcontractor' s accQ1:ntinc, inta..-nal eont.:ol, and fin&:lcial report in; sySt.e%:l. All re~e::ence to Su!x:ec.traeto: shall mean Contract.or. BAS!S OF ACCOCNT!NG AND F!N~~CIAL RE?ORTING Cl. 01) 3asis c! Acco~~t.in~ S~ont.ractors ~y elect to use ei~er cash ~asis or acc~l basis me~~oc o! account.in; !cr reco:cin; !~nanc~al ~a~sacticns Quarterly invoices must be prepa=ec on ~~e SL~e bas~s ~~at is usee !or reeorc~; !inL.c~al trL.sactions. (1.011) =~e City reco~encs ~~e use ot the ac=r~al ba.s~s !or recorc~nc; !~~anc~al t::ansaet~ons. (1. 012) :! a S~ocn~actc= elec~s ~c ~se ~'e cash bas~s !or =eco=~~ns ~ina~cia~ t::a~sactior.s e~~~S ~~e yez.:: : A. Necessary 4Cj~S~e~~s ~~st. ~e ~ace to ~'e 4ccr~a:s at ~~e begi~~~~g ane ~'e tbe c=~t=act ?erioc. =ecc=c! . .. e~c: c.. E. n:: cc~?~~e~~=~s, S~~?c=~~~g ~eco~ds, ~~d exrlan4~c=y ~c~es usee ~n co~ve=~i~g ==~7. cash basis to ~'e accr~al ~asis ~ust ~e Ietai..~ee . (:. C2l =in~nci~l Re?c=~i~~ Eaeh Subec~trac~== s~a:l ?=ese~t an ~~vcice ~o ~'e C~~ ~ .e~ ~~ -epc-~ -~e ":~~~c'a' ac.....-v 0" ~~e eaco.& qua: ~ _ "'-:-.' _ ~ -. : ~.._. -:-- . -- y - .... --. quartar. :~ acc~~~cr., ~= acva~cec =~~c~~g ~s ~~volvec " . 4- t~- ~....~:..~ ~k.1 rrr:tJ~' > > S'! __. { -' {x ,~, - s.: 1i~'1 , .~ I ~ ~= S1:~CC:l==ac;c~_ .h&11 main~ (t'!!'I't e.. o:!1.:-..~Ja &Pr:cvac!) & c!~la u.~:; Icco'.::.un. .y..~a: (u-:ili:~, c~bi~& cd. c.::a~~s) 10-!.:"" & Cca:al Jou:::.al. a Casl: itec&~i':S JOu::""'...d. & Cc1.~al Lac,.:. cd. ... Cuh D!.sb=s~~s .10:..:':1&1. !":.. Ciq =.~.';"c:.s :::.a: a Pa7=oll Lecge: alse be :C...:-I"-e~. ~e Ge:la:al. Lee;.: a:c Jo~&ls shc~a be pos~.c as :.~~re~, a: le&s~ ~-~'7. (Z.Ol:!.) Ge:'le:al .1c\:::':u - A Gene:al JO\:=1.1 s~&ll ba ~~"--'- 1:aineci .:or :eeorditll adjus1:i::.g e:1~es, =eversi::.. en:;iu. c:losin. eneies. and oce: fincci&.l. 1:rznsactions not nc~lly reco:d.d ~ the Cash Receipe. Jo~~al 0; Cash Disbc=se=en:s Jo\:~~. En::!es i: ~he General Jo~&l ~t be aeecwz~ely do~en:ee. ~~ en:e:ee i~ c~~elogica: o=ce: ~~~h s~=icie~: exrl&n~:c=y notat~ons. Ex~r-le: DR.. laC CR. Re~t :'.x?ense Re:'1t ?ayi.:le 100 . To ~eco~c acc~~ed =e~~ 1:0 ~~:ch 31, lSeO (2.011) Cash R~ce~?~s Jc~~.a: - A Cash ~ecei?~s Jc~~a~ S--~. -e -~'--~'-e~ .0- -ecc-~~~g ~" ~-S" -ece~-~s ..A__" ....._~. -&._- - - - - ..:-- --.... ...-- ....... .~.. .. -r ... (e.g., Ci:y ~i.==~~Sr c~~=~~~~~o~s. ~~~eres~ ~:c:e, e~c.~. The C~s~ ^ece~?:s Joc~a~.sr.all c~:~~=.. (=~=~~ =e~~~re:~~:s) :~e =o~lo~~~S c=~~~ ~eac~=ss: - ea.~e -=e.CI!~:': :l-":::'~e.= . ..... . -cas~ ce:~= CQ~~S -i~co~e c~ec.:..: c:::~s :c~ _~::_~_ ~~:l o...:;.~g accc~.:s. - -- - -Ci:y ~a~~=:s (cne CC~~ pe= p=og:a:) - Cc:: ~::.bu ::.cns -O:~e: I~cc:e (G~~:SI sale: c: s~??2~es! se=v:.ces, re::a_ ~=c==e, ~:.scell~eo~s revenue. :ees. e:c.) r.- (%.o~) (2. Ol~) '!be Cad:. b~b=se:ilCts Jo=al s:-1.11 cc:;au (!""~-.-=-- reliU::e:scu) ~e !oll~-i-S c:ol~~ hU~~-:is: - -c..:1 -~lIck n'--"e: -cash (c=.~i:) col~ -e.x:j)csa &CCO\::l: ':1ce -ciuc:ir~i~ No:e (1) Se?~~E:e ~~se co!~~~ a~e :ec~__~cee for sz!a.-y exp~se ~d o:~e= re~~-=i:g ~e~se cl&ssi~ica:ic~s ~c= eac~ ~:oi=E:. No:e (2) :::1 ,:~ies :!.:1 :he ces cri:::ic:l co:!....:.::..;. t:"~ ': s?ec~=y the r.&:~e o=':~e e~e~se L~C ~he cc==es~on~~~g e~e~se classi=i:;:io: if net included in the col~ he~d~6' Note (3) Checks sbot:.lc :lot be ~ :::I!:'l co e::::=lcyees (o:her :har. ?zy:cll. ~leage. ==.vel, ~~~ pe':':Y cash C'':$~c.:.a.:l chec!~s). A Check Re~:'s:er czy be s~bs::.~:ec :0= :~e C~s~ D:'s~urse=e:o:s JC-':':':l.al, b\;: t.'-::.s is 'nO: =eco=e:lcec. 1: used. the ~~ck Regis:er 7~: ~o~~a:~ ~~~ S~~~ e~e~se clas$~=~ca:~c'ns ~C ces:=~~:~c~s ~~=o=--a:ic~ req\;i:et ~he~ a Cash Disb~:$~~e~:s' Jou~a:!. is ~ec. Disb~=se~e~:s ~~:~C~~ S~~?o=~~~~ cccu~e~~2~icn _~l: -be ~~sai~cwe~ c: au~~:. Genc:al Led~e= - A Ge~a=al Led;e: shall be :a~~ai~ec ~i~r. acco~~:s ~c= allasse~s. l~ab~li~~es. ~~d bal~~~ eh7e~~i:~=es, a~c ~evenues. Se?a=a~e acco~~s =~s~ be :ai~~a~ed :0: each Ci=y ?=OS=~'s ex?enses ~d =e~e~~ -A cha=~ 0: Ac:cu~~s s~a::!. ~e :ai~~ai~ed: !he Ci~ :ecc~e~Qs ~~a: age~:s ~e ~~e e~ense accou~: ~i:les O~ t~e =c~~hly invci:e sub:i::ed to ~,e Ci:y. (2. C1S) rav:-ell Leere::' .- '!he Ci~ :IlCO=Cc!s ca~ a .r&y::'cll La!:...: De m&,;.:1-:&inad. The led.e: shoul:! cc:~C,:1 the foll~~.:. ~~o::&~icn &bc~: ea~ .~?lcyee: -%1':. -posieicn -Social Se~~ry ~~~I.: . -payc~: :eco:d ~cluCing: -acc~l perloc! -g:oss pay -i-:~~ec! payroll cec~=:ic--s -c~.c:k :l~er I~ & Pzy:cll ~ec&e= is no~ usee, ~~e above i~e::&- cier.: .....! -: be :ecc:cec! !.:l en. ca.s~ c.:.sb\::'s e:e:::$ j o~~&l. (2.015) Pl.~~ Cas~ Disb~:se~en~s A Pee~ Cash Fund :&y be :ai~tained :or p.y:e~: c: s~ll (:I.SS th~~ $25.00) I inc~de~:al e~7e~$e$ ~- ~r:ec! by ~~e S~cone:ac:c= (e.g" posea.se c!~e. s-...2.11 p\:::'chases o~ o~=ice s'\:?ply i:.e.ms. e:c:.). Pe::=;, Cas~ cisb~=s~er.::s =~: bl. s':.:.rro:-:ec. 0:-. s:c:e =~ce~?~s~ ?e::y cas~ vc~c:~e:s,.o= c:he= ac:her.:~c~:ec coc~e~:a:~c~ :~: ~~c!~ca:e :~e i:~ p~=c~asec anc :he e~?lcJee ~k~B :he ?crc~asa. Ur.s~~~c::ec! ~e::v cash d~sbu=se~en:s ~ill ~e ---Q~Sai~C~eQ o~ auci:. The pe::y cash ~~c! shall be :a~neainec c:; ~~e 1.:::-:..5: sys:e=. i..... a check shcclc! be c!ra"~ eo che pe::7 cash cus:cc!ian to se: u? t~e ~nc! ~d :0 I:al~c periodic =e~-~\:.:se::1en:s. Rec:eip:s. vouche:s, etc.. sc??o::i~& eac~.:\:.~c! :e?len~5~e~~ ~s: be bou~c :o&et~e: ~C ~iLed c~=~~olob~callJ' A $15 Pee:j Cash Fune ~5 :eco~endec. 7 (3.012) (3,,013) All acco=t1:1J racer" (jCN:':lall. le~le:s. a:c.) c4 luppord.:1 d4e\:11r.:a.:1o:c C1nvo1cu. r.c.:t;s~. checQ. vou=ers. e:c.) =:.s: 'be =.:a.1na4 fc:' . ~ pa.-1od 0:= five (5) yun. Adeq'\a:a ca=e 1'1....1 be L"urc!.sad :0 .c....u.::d =e I.ccclmei::.; :.co:45 anI! .~o~:bl to, ~ n.l~:1cn,. A::::1 das;:uc:ic: er ~.~: of r.he SullcCl:l.::ac'tor's I.CCC\:1U.:11 :eco:ds 0: sujlporti:1& rioCClInU:icn shall b. iJcD.~&.:.ly npo:uQ to ~. Ci1:y. O'al'l..",??o::ad aX?<<:'1ul 'li11 'be ail a1l~ltt Ut>C:1 aucii.::, ruul.:i:.. ~ ove--pay:1au't "ses~u. Fi1i~S ~~ S:c~aF.a All rtlevc: I1:?PC:-:i:1; dCC\::Jetl.:!.C: !c: =e?c:~ec. prog:c ex?enc!!;o.::u cd revenues .ha.ll b. filec. i: a sys~e:a:ic &n~ co~s11:~t ~e:. I~ is :eco==.~Qee ~I.: s~~ro=:!.~S eoc"~~:s be ~!.~ec. &s :clle>:s: checks n-.:=erica.11y date/veneo: ~~e i:lvcices (sl.le.s) vouc~e=s n-.:aric&lly receipts n\:ltrically :i::lec2.=~ ca:e/a~?h&be:~c&ll: Re:e=enc~:'IS:: Ac~o"-.~-g ----.a~-~o~:s pes-e~ .0 -'I.. ~.,,'l.c~---~c-e-"s - ""___, ..._....... ___ .. _ ... _ ..... _"-_ w...__&o. .. _ books sha_l be &Prropr!.a:aly c=css-re:e=e~ced to ,su?por:i~g doc~e~:2.~ior.. ______.. .___._4__'" .r....._ --..-- Fe: exa-~le. ~~e~ci:~:e t=~sac:io~$ or. :~e Su:co~:=ac:cr's becks ~S: be c=ols-=e:e:a~cec t~ :~e S~??C~:~=6 coc~en:&:io:'l &s :ollo~s: ~vo!.c~s vance: r.L~e L~C c&;e checks n...:be= vcuchers =l.::~e= 'I Exa::;:lu 0: 5~??O=:~1 dc==e:ru;1Cr.1 r.~.~ fc: va:i.C\:.S exycll!iru:. c&:escriu are u ~oU~.: Pe=s~~el Se=vices - 1&1=011 rec::!s, ~~a an~ a~:lt:1caace =ecc:d.s s~~ec. by :be E::;llcy.. md a:pp:cvad 'by Qe S'-'7L-r-so:. C:a c.i.sc~- butiC:1 raec:ds by p:-o!;~ (acccn:n:~. ~cr coul vc:k ~. C':l a ly basis) ~o= all ..;..,~.~.loyaes. . E=ployea ?ay:oll Doe~enca:ion - payroll :ecc:cs .~-ni ac=-.a!. e.~~~:U::es ~o= Q;.si:)~. i!CA. eCe. (:ICA a:~ TU:A &X?er~es ~e noe &!.lc~- able &x;lcues fo: a6e::.e~es exe::y:ec. by :::e IRS) . -- 1'1 Co:1sulcan: Se:-viees - c:!:e cc. ac:e.::.;;?~~e :eco:~. ::ave1 vouc~ers ce:a~li~& p~=?ose. c~e ~c. loeaci~ 0: e=a~el. p~rchase e:oa:s ~C ~~~=~:es :0: s\.r:?lies. Travel - c:avel ?olicies 0: :he age:cy (~i::~); cravel eX?~~se ~~ehers sh~~:g loca:iC:1. ea:e ar.c. :i::e c: ::&ve1. tm:,?ose 0: ~~? a::1c. :&~es cla~ec; ver~cle ~le2ge logs sho~~& ea:es. deseina:icn ~c. heac.q~::e:s. p'~~ose 0: e:i? and ::ileage. Ope=at~6 ~7enses - pu=~~ase c.oc~e::s su:~ ,5 purchase o~ce:s. i~vcices. :eq~isi:i=:s. s:~=k receivec =e?o:~s. bill c: laci:g. e:~.; ~ease anc/cr lease ag:ee:e~:s. cc~~=,c:s. I!~~,,;t CO~:7?"O!..S (l..Cl) I~~e~al Co~~:cl~ Internal ccn=rols sa:eg~=~ :~e S~:ccn=:ac~or's asse~s ::0= ~sa?prcp~iatic~$ 0= ~ss~a=eme~:. Each S~=cc~~:ac:c= sh~~l p=ep~r~ necessz=y ~~~:=e~ ?:ccec~res es:ablish~ng ~n:e~a2 - , -~- ~ .~srm :'eVco.:. shall ba =a:inui::1ec !:. ~ s~a:&'ta aec.cu::.: ~e.u o:he~. ~p=~.d by City. 1.: othe.r :fl:nda a:a mainui::1.d 1.:2 :h. aCCOlmt:. raven~ for ea.c:. prcg:am -.".': 'be e1.&&:l'1 iden~~.bl.. -All :eeei,:s (~el~~I~1 ~h.Cks) sha.ll ba ree~p~a~ by US~I p:e-n'C::1bceC1 =aec,'pu. P.-cairO: ~o:::s sba.ll be sec=ee :0 preeluu 'l!'l"!-e:ber1%aci ese. -C&Jh =ecei~t:. shall be 4erosi~ed dLily C?C 1n:&~:. -~?lica.:e ::rOSi: 111,s sh&ll be :e:&i:ec ~d f~ec c!:1:'onologi 1y, a:lci sha.ll cor.~c.n s~:icict: :a:- e:'lce i::.fo=:&~1on fe: cot:p&:-!.son to e::e i::civi~\:Ll pre-~ered recei?:s end ~e CLS~ R.CI~r~S Jo~-:&~. -An employee \Jho does not: hcc.h cuh sh~ll =ec.o:d. cash reeeip:.s (1::1lus .. '....-::-i:e-~:-C':lce" Cuh Reeeires Jo~-:al is usee) . -7r.e ::;O~~~~V ~~it s~&~e.::len: s~a:l be :ecei-.:ec 1:1~ reco~~~ec-~c~:~lv by s~eo~e i~ce~er.ce~: 0: ~e cLshier~~g.de?o$i:i=g. ~C bookkeep~~6 ~c:i~-s. -rne b~ reco~c~:ia:~~s shall be re~e~ec. by s~?e=viso::y ?e=so~el !cr &??re~ria:L~ess ~C &c:-.;:&ey. -All che~~s sha:l be =~s=:ic:ive:y e:'lco=sec ~~edia~ely ~rO~ =e~c~p:. (!.. C:2) D:..s::~rse::Je~:s -A~: e:..s=~=se:e~:s. o:~e= :~~. ~e:=; c~s~ ~is~'~se- :er::s, s~a:': ~e :ace '::~. chec:t".. :S:'c.k c~eck stOl:.l~ sh~l~ be sec~ec ~C Acco~.:ec :0= :0 ?=ec~~~e ~ac=~o=i=ec ~se. -A seco~~ si~a:~e sha:l be requ:..=ed C~ al: checks. ~~e seco~c pa==y shall be i~ceFe~c~r:: ::0: ~~~ cas~ :ecei?=s ~~C c~s=~:se:e~:s ?=ocess. -C;:l!cks s::zll ~o: be ?i!yable :::.= "cas::''' cr sig;:ec !.~ acva::.ce. -Voiced checks =us= be ~=ila:ed ~~C :!.led ~it~ c~~celled c~ecks. ~: ,,~- c.s . 0:') -S\tPi'o:':1:& do~cu shall ba mckat "pail!". -SU;:PO=:!:1i d.oC".:=an~.J' shall ba :-.~armcad :0 =ack nucbaTs. .?av::oll ci1ecks shall be ~~=ibu:llli by pe:s~ no; i:1volvllt i:J 'ti::lekeepi:1t, p::e?C"-='i e~ pay:~l~, 0: :accncilina o~ bck a.cCQQ.U. ::'!::?loy... hi:':~,:'1g and :e==:~&:i.."'tg, c:: ?&y ra:. ci1z:Ji: shall be &Pp:-OVIl~ by pe:sons ~c.e?e:'.t.n't c~ pay:c.&.l fo.mc'ticm.l . -All disbC'smen:s, excl1:.cing pe~~ cub. pu:cues. shall b. &?p::ovec by pe=scr.s !~Q&?~ce~: of c:.eck p::ep&:i.."'tl and bcckkeapi:&. -i~ltc! un': p\:.:~2.S es s:-..a.ll be &?p,:,ovec. by :~e agency's Bea:c! c~ D~:ec:o=s 0= 'their a~:~=i%ec ::ep=..cu.:ive. -A c\Z--:-e::: 1:'$::'::'6 0= =:':e~ ..sse:s sho~-:.::& ~""'C~-:6 s~=ce sh~ll be =a:.~:..~ec, a~e a :~e~ asse: i~vltn:e:y shall Pit cencuc:ec a: :eas: ~-~~lly. (4,Ol.:!) Dc~c:'nE - All o==:.ce,:,s, e:?!.oyees, ~~ agen:s ~ho r~C4e cash c: have ac~ess :0 :~e S~~c~n:=ac:o:,'s r~c$ s~~ll be bondee. OV!:'?.: A........ ~'!S Me:~cc :cr De=e~i::.:~~ Ove=?~~~e::.: Assess~e::.:s I! upo::. auc:.:, 0':' a: ~y o:~e= :~e t~=~.g ~~e co~:=ac= year, i: is de:e~~ed ~~a: ex?enc~~~=es O~ =eve~ues =e?c=:a: :0 :~e Ci~y and usee :0 cc=?~:e :~e S~=cc~~':'ac:~:'s cash :lo~ needs \le:e i~co==-ec:ly ,p"'lc=.::ec .-:he-Ci""y-s~a~--l--a.:j~.:.... ..l:c- suhsequen: ~~:h's invoice pay:e::.:, 0':' :ake o:~e= a??':'o?,:,ia:e action. ~-e total ove=?ayc~~:(si sr~~l be ce:e=-~~ec as =ollc~s: - ~}. , . , $ t.e.. : Ac!va=ca4 '&,.,:1D o! City Fe" Overpayman~ 1:>ua C~:y s xx:o; " L~TA-~Or;S 01:, ~'"t~S (6.01) . . Pa~'~~1 ~o A~~il~at.~ Orraniza~ianl/?:.ons Subcon:~&c:or. .hall no~ make payman:s to &~~i11a:ed C~.~~- :a:ions/pe:so~ for proJrKm &Xpenae. (I'~C'S. rant. .qui~- food. .:c.) t:a: &Xc..~ ~~a reasonable COI: !e: su~ tX?'~~'- The C~:y shall be .olel, responJibll !c: the d.ta~~~~o: 0: raucnable pros:m eel:'s. A rauouabla cos: shall be Ula: price vr.!.ch vc~d be paid by CUI pa:'C1 to co~.= vhe u.. put~u a=e du.li:1& at &::1 len&~. (6.0:2) A!~~1!':1~ O~5a~!=a:!or.J/rerJons O=i&:.i;&t~b:J/?I:.ar~':ela~.d ~o ~~. S~co~:=ac~o= by ~lood. ca~~&,.. or :r:o~i~ 1,S&: o=i~~~a~~~ (i~co:rc=a:~on, pa=~ershi?, ~.ocia::~. .~:.) w~~ be consie_:ld a!?~lia;.d fo: p~~ose$ o! ~~~s C:~:: The Cic, .hall b. .olely responsible fo: c~e ee:t:: na:icr. o~ a!!iliacion. (6.0112) L~&ll~abl. tX?~"1 Ei7e~s.s by chi Subcontractor :0 a!~!lia:ed c=i~i' =a:ic~s/?=.on. ~h~ch axce.e =.ason&~l. COSts _0: such ~en... vi~l b. ~~.~::o~.c or. z~c~:. :f ~~~s. ~~?er.s.. we:. r.~~~=&e~ :y t~. C~:y. ove:- ?a;':i~:'j: usus:\er.:s a&.~:".s: the S\;~cc:l~=ac:o: eay res-.;l: . CO"~':'C- '''''v-''-c-''''-~O'' ------- .._.1"\ . ~"'..":'.' __.~... ., --- ------ 7~e City .r.~ i:5 :un~~~i IC~:CIS r~.c' i~.a: 1::15S en :~e .c~~lve=e~ 0: a hiGh level 0: ?e=:o=--&nce in :~I m.n&seQln: 0: pros=~ ~unas. !~e S~bco~::ac:o='s :an&gL~en: is =.I~o~.ible fe: ens~=i~. t~t ~n ac'~:ion to the p:ececin: acco~n:~n&. ~n:.~.~ con:=ol, L~d =.?or:~nl =e~~ire=ents. t~e :ollc.~ng ccn:ract .~inist:a:~on =e~uir~e~:~ are acic?:ed and enforced. - ~ ~,~..~~-^.."fl<"'<_ ~."",... ~ .;:' . "tr.'~'''T:-~'''''',~ __ ~ .i3.~i'W.~ -rJ::"..~"i~.;.:"';" ~ ~- :--' ~~. ff- ~'''N .. ~t: ~,... ~ -~- ...~ .:::~...._~ {.~ ~ ~~""'.1. _:~...~ ~!..~T'.'-~jP~:.!' "'~. :;;.1'0:......"" ~{~- ~l 'l'- Ll~~ 7.~~..b",.}~ -.~F.-:' ..ti'oJ ~~ '-~ . ~~_-. ;" ..-~i.....-.:.. 't-r..-::t: ~~."'. "~.:-- ..~ '.fo~~- --:.~ .:;L ~ J'1_ .~e~ ~~ i}::~~ \'"~ E~ '~.' ~t~,. _ : "~-;j-'-'.~'-~" ..-.~,~# " ';1\ -.';. ,-"" 1 '>',...... .;-f _a, il? .~.'~.:>;: ;.:..::.:......-.. :~~~: ~-.'-"~ r -~.:ii,V~.. ..~, --A'" " ~~. ~.... ,~_... ... .. ...Y~ ~ .... ,..- _ J IE. ~.. . ~ .... ,- <'.!';-' ~ _~., ... .- "~~ ,- (,1;<. - .'::. : -!ha "'," -~~ wh1..a.iCa ~1. f~,~ aid " .1Stt~~to d.ty~"n .. mtaUft., apcm' r' v it,; ~"'M. ~ ~r~:f't'f"l=:.,;, d~i1it.tb."'firat1C: -ot-S: icl~:a...~cZ' . pu1C4 c:-t five yu.:. thuaaftu, all of iu ~.&D4 rac0r4S re1.at1n; t:o the opera'tion by it of ead1 pro'ect: or =-~.. KUvity which i. fmu!el! i:1 whole er in part with 9ovu~tal moni.., wbet.ha::, or net such :mcnies are rlaCeive4 +-h...cm9h the City. All a~.-.. boob ~ racer!!. shall be mahuJ.ne4 at a location wi~"d" :.os Angeles County. (7.02) t.~""ta'tions on !:xpe:1l!it1::es o~ p=o~am l""=l!.s (i.021) ~tu:'es Ouui.a of Cont:ac't Parioc!. !:xpenses eh&:qed aql'ins't proq:'aJn ~unds may no~ be incurred prior to July 1, 1980, or subsequent to the contract ~e==i.nation date. (7.022) ~?propriate anli NecessL.~ ~enc!.i~es Only those expenditu:es as needed t.o CL-:Y OU't ~. pu..-poaes and activities of the appro""ec!. pro;:,am A::'e allowable. (7.023) ~loca~ie~ c~ Cost. Pools Fo::, Subcont:acto=s who epera~e m~~y pro~ams. 0: have more 't~I'~ one :u::1ding sou.:::-ce, the S\:l:lcon~ee-:c:'s shall allOCAte expend~tures to the va:ious p:og=ams 0: !~ing sou=ees. The costs sho~le!. be allocatee!. on the basis most approp~iate a:e. !eas~le in the ci:cl::1Stances. !:xltmples: N~:, ot hou:s spe:::t N~= ot employees N~~r o~ resident.s St;'".Jare ~oetaqe ~elative revenue vel~e ~elat~ve expense vol~e ~he Scbcont::'actcr shall ~ai~tain p:'cpe= ~ec~entaticn =elated ~o ~~e alloca~ier. of exper.ses (e.g., t~eca:ds _ t i!TIe -s\:.~= i.es ,-s~-.:a=e~-o.:.. ,-...S'e~eas-':'=e=teffi~s, 'e'-:;-c.) . (7.024) Bud~e~ ~~i~~~~c~ ~er.ses may net ex:eed ~~e ~~~ l~~s shewn in ~~e ccr.'t=act b~d;et. , . (8.012) (8.013) (8.014) (5.015) (S.015) .~uc=e':s The Subcen=ac~o:, sh&.ll ray = salz.=iu ~ghC' ;he tho.. &u~ho=~%.d i:l. ~e ccn::-"I:~ or :he ac~dcc;.a Qe=ecoi- For pu..~os.i of t.!U.s '~~ac't, v:1.eu a'P~ov.ci 'by e~e C1:y 1:1 v=1d...,S in i~v&nce, no .~lcy.. sh&11 hold more 't~ en. pos1=.on 1:1 the sa:::. p=o~a::. Fo:, })'l:--poses of ~hiJ Co:1C'~C~, -.:beu an e:::jJ1oy.. ,.':'Ves in 'the SI:18 or au.l ca.pac.ities \:nO.: ::cre ee one. CO:lcracr.' bel sbe r:.ay not: c~~-,e ::I.Or. :11~ lOC~ o~ hi~/her t:~e co 'the eont=ac;'s r&k~ as a whole. 70:' ixCyle, an -=?loyu may na't c:-.&:'ge Ulei= 'ti:De 'to one con::al:'t 5oi, a:o~e: 30~, cc! a:lo'the: "30~. , :o=-p~-?cses of :~s cc::rac:, E:?loyees ~ho ~ork ~O cou=s per week 5:"11 be con5~Qered ~~ll-t:~e e:::jlloyees. !.:?loyees vilo ,,:ork less the l.0 00\:'5 per -.:eek shall be co:siee=ec pa=:-ci=e EC?loyees, and ~ey shall be. pC-Co on a pro-ra~ed 'basis, '\:::.less Q'the~5e ar?rovec ~ ~~ting by ~e City. 'ICe age:l.cy ~ll t::&ke no =e~o~c:ive sala:-v acj\:.S=e~: fer a~Y '~loyee ~~:hou= ~~it;'e~ 2?proval :r== t~e Ci'='J . (9.01.1) T~avel E~e~se Re'-~u=s<<=~=r A~:ouab:..~:.,~ (9.01) ----(~~:2T Travel e~~ses :0 be a::o~ec =~~ be p:ov~~e~ :0= i:-. o:he CC:1o:=ac~. L.:::l'"fi-~-cns on ::~enses 7:avel rei:~u=se~en: :0= :=a~s~or:2=icn. =eals, ~~C locb:.~g shall no: exceec ::avel al~o~ances ~~ic~ a:e allc~e~ by ~he Ci:y. rm-B~ - J;- ,~ .~. II" ,{~ " _ -" .. .'" ". =. iit. ... ":'1\' "1/.....( Ii" ...~.:, _ .~_iJ.{; . j.- :iIf" ,..;yt f' ~ . ~ ;:(.: -It ~~'b ~ :,!.-.j ~!. ~;, ,~~ .: 1.,' ~.~\_ ~.!. ''!>l!.-<)J, '~ ;, ,-:,. ft:'~' ", .':;';'_ ~.' ~':t~ '~t I -a:- .~ I ~~ ...; ~ t 4 . - '';' ... : -,,~ 4'\:1 .:' ~ ," - "-~'!,f.! o't" ~ "'~' "':'-' - . .f~,~~:, ~lk,,~ ~ .I"'" of" . ~1.f"1::.": ~... <" ...';. ~..,. .. .... t - ... . .11.....-;. ":.i~'-J. ,'-;; .l ~ '.. ....... _ ; ~ ..... s~*ti.i' ~. , anJ.,;- H-''''rilDl..~= ..curl' =.qt;1."~' '1nftIraca-c:Warqr :PU!Dti"-1-~1 1: i:l ~~~C. ~., ~.~Ct~l;~ .=ac:j ,ari04. . -Ii'. S\:bccm=.ct~s =:a: 1:IIed1a:lly no~'" :!:a Ci.:y we reqU:t:-a4 ~mc. :ts :n'Oked. vic~-&lm. or caar~ ~.. made tn.:~.c:1va. (10.013) Ius'\:.Tane. sba.ll ~c1u4a at e:u!~'t'seme: ~~-I dl. City of Santa Monica .. a&!.itio~11 i:1Rra4. . ~.... 'J/ ... ~ c'l. ~ (10. Dl2) Cll. Cl) (11.011) ?:-ot)er~ ~2emc': , , (11.012) (11.01:3) (11.014) n.!..015) (11.016) (11.017) The S~con't::&c:'t:~: .h~1 a.ss~ x-urousibill:y ClC accC\m~abiliry fOT :he ma.i:lem&:'1ce of all uo:1- axpec.dable prope:ry pu:Ch&s&~. l~ased. 0: :~'t:.d vi:h p:'o~zm ~ds. Non-expend.a.ble prop~=~ "is de.:~ec u eny :z::g~~le personal p:operry cos~ini $100 or me:e per ~i: anci ba.'.....c.g .. us~. lUe of more ehan 0:1& ~.u. Teal prope~ End any tn~e:es~ ~ sueh rea_ prope~,5~~ as . :o::.&6e, e~~ deed. 0= o~be:- e:1C'HY7Il-.rc.c:e of real prcpe=-~. cc the ~cs :eceivec froc ~he s&le 0: Er.y other dis?os~~ion 0: &:y ~o~- e~~~~c&=le prorer~y 0: i::e:es: :he:eo~. Aeq\:.is~':iou 0': non-expencable p:eper:y :i:~c ~a': vere no~ l~s:ed ~ :he app:eved co:~r&ct :eq~=es an execu:ed eo~.:ica:ion to ch~5 cor.::'~c: to provide ehe ~ecess__-y ~es. Unless approved by ~he Ciry ~ ~~:ing. ~o~- eX?endable p:cpe=-=y sha.ll ::10~ be ordered 0:- p~rchased by ~he Subcontractor du:-ing the last ~~ree mcr.:hs 0': ene contract pe:~od. The Subco~:=ac::= shall ~aint~i~ ~ ~~-to-~a~e ~-ven-o-' ,~s- c& .'1 no--e~e~~-~'. ~-~?e--v ..6 _ .I..<(/"fI --. - - ... - -r .....&_-~ r-...... ~... it~~~ :0: ~~~c~ he ~s res~ons~b:e. =~e so~:ce 0: :~di~g :0: eac~ asse:" sha~: be no:ec. :he S~bcon':=acec: shall reper: pro=?t:y, ~~ ~~i:~~C. t_c_tbe_C:.:y.... ~" ~~ c:.:es-o:-bu:-gl-a:-y, l--cr..~, J~g-e. o~ des~~~cticn 0: no~-eT.?er.cable p:o?er~y. !he :&?or~ shall con:a~. a: a =~~~ i:e~ ider.:~:ica:ion. :-eco:ded value ," facts rela:~ne to less. and a copy 0': ehe law ~:o:~e=er.: agency =e?o~:. A p=o?e=~y ~~ve~:c_! ~~s: be :3ce or.ce a yea:.