SR-300-002-01 (60)
3PO --ooz-o/
10-0
AilS 1 3 1915
CjED:CD:MK:wp
CouncIl MeetIng 8/13/85
Santa MonIca, CalIfornIa
TO: Mayor and CIty CouncIl
FROM: CIty Staff
SUBJECT: Reconm~ndatlon to Approve the FY 1985-86 Corrmunlty
Development Program Contract Language and Grantee
Workp1ans and Budgets and to AuthorIze the CIty Manager
to Execute the Conmlunl ty Development Prograrrl Contracts.
INTRODUCTION
ThIS transmIts the FY 1985-86 standard contract (Attachment I)
and the FY 1985-86 grantee workplans and budgets for 29 CommunIty
SerVIce programs and 2 CommunIty and NeIghborhood Improvement
proJects (Attachment II) that were negotIated and are admIols-
tered by the Department of CommunIty and EconomIC Development.
It further dIscusses the process undertaken by staff In evaluat-
lng and negotIatIng the contracts, grantee workplans and budgets.
BACKGROUND
In the course of apprOVIng the FY 1985-86 COIT@Unlty Development
Plan, the CIty CounCIl approved fundIng for 32 CommunIty SerVIce
programs and 3 CommunIty and NeIghborhood Improvement projects.
SInce that tIme staff has engaged in the development of contract
language for the current fiscal year and In contract negotiatIons
WIth the approved grantees.
A. Contract Development and NegotIatIons
The Comnmnlty Development Program represents a multItude of
1o~61
A~6 1 3 1985
- 1 -
communIty serVIce programs and neIghborhood improvement proJ-
ects that are In operatIon or undertaken to address the Iden-
tifIed needs of the communIty. Because a grantee's contract,
workplan and budget serve to ensure that these needs are met
during the year and provIde an agreed-upon base from which
both the CIty and the agency can operate, the negotiatIon of
these contracts has been a top prIorIty for staff during the
past several months.
The contract language was revIewed by the Department of Com-
munity and Econonnc Development and the CIty Attorney's Of-
fIce and reVISions were made to update any provIsions re-
quired by fundIng sources as well as to streamline and
strengthen the grants-reportIng and monitorIng process. The
changes Incorporated Into the FY 1985-86 contract language
Include the requIrement of all grantees to report quarterly
on the percentage of mInority resIdents served as well as the
requirement of contInUIng grantees to charge a mInImum of 2~%
of their prior year's program expendltures to non-City
sources In order to qualIfy for a cost-of-llvlng Increase in
the next fIscal year.
Each grantee's proposed workplan and budget were compared to
Its FY 1984-85 workp1an and budget as well as lts thlrd-
- 2 -
quarter program-status report. In all cases staff was look-
Ing for an approprIate level of serVIce to Santa MonIca resI-
dents given the CltylS level of support and a realIstic tar-
get for each obJective gIven the program's performance in FY
1984-85.
Throughout the contract developn~nt and negotIatIon process
every attempt was made to ef fee tl vely address the conmlunl ty' S
need for comprehensIve sOCIal serVIces and to contInually
ln~rove the grants admInIstration and monItorIng process.
DurIng the course of these actIvitIes, the follOWIng Issues
were addressed.
(1) Percentage of MInorIty Resld~nt~ Served. In FY 1984-85
the program quarterly report was reVIsed to Include the per-
centage of lOW-Income residents served (80% of L.A. County
medIan Income} by CIty-funded COIllIllunlty serVIce agencies.
ThiS proved helpful In asseSSIng the extent to WhICh the Com-
munIty Developn~nt Program provIdes serVIces to the low-
Income CitIzens of the CIty.
In FY 1985-86 the program quarterly report Will again be re-
VIsed to also Include the percentage of mInorIty reSIdents
served by City-funded programs. ThIS reqUIrement is beIng
Implemented In response to concerns raIsed by the Task Force
on LatIno AffaIrs In ItS fInal report to the CounCIl as well
as to those raIsed by the SocIal SerVIces COll@lssIon during
- 3 -
Its FY 1985-86 CommunIty Development proposal reVIew
hearIngs.
UnlIke a workplan obJective WhICh has an annual target and IS
tracked agaInst thIS target over the course of the year, the
quarterly reportIng of the actual level of serVIce to low-
Income resldents and to mInorIty resIdents WIll not have a
projected target. Instead, these statIstIcs WIll be used by
staff In plannIng and refIning the Community Development Pro-
gram In the future.
(2) Non-City Sources of Funds. In order to begIn to address
CounCIl's expressed deSIre of haVIng agencies become Increas-
Ingly less dependent on City fundIng In FY 1984-85 each agen-
cy was requIred to raIse a mInImum of 20% of Its program bud-
get from non-CIty sources (15% In the case of the neIghbor-
hood aSSOCIatIons). WhIle many agencies were and are ralsIng
much more than 20% of their operatIng budget, several agen-
CIes were laggIng behInd 10 theIr fundraIsIng efforts.
In FY 1985-86 thIS reqUIrement of raISIng a mInImum of 20% of
the program's budget WIll be contInued to ensure that agen-
CIes aggressIvely pursue other sources of fundIng. As In the
past, the trackIng of thIS reqUIrement for non-CIty fundraIs-
109 WIll occur In two ways: (l) the quarterly fIscal status
report WIll detaIl the actual percentage of CIty versus non-
- 4 -
CIty expendItures and (2) the quarterly program progress re-
port wIll record the actual percentage of non-CIty revenues
receIved versus those proJected 10 the budget.
To further strengthen the enforcement of thIs requirement,
the followIng procedure wIll be Implemented. DurIng the
course of the CIty'S annual fInancIal audIt, Peat MarwIck
WIll reVIew each of the grantees fIscal records. For contInu-
Ing agencIes, the 4% cost-of-1Ivlng Increase approved by
CouncIl as part of their 1985-86 grant award wIll only he
Issued If a fIndIng IS made by the CIty's audItors that no
more than 80% of the program's expendItures has been charged
to the CIty.
(3) Budget-Related Issues. The proposed grantee budgets
were analyzed to ensure that funds being provIded by the CIty
were applied to dIrect serVIces to the greatest extent pos-
sIble and that the level of serVIce provIded to the reSIdents
of Santa MonIca was conSIstent WIth or exceeded the CIty'S
contrIbutIon to the program.
AddItIonally, It was requested that each agency develop and
submIt a cost allocatIon plan WhICh demonstrated how program
and admInIstratIve costs, both dIrect and IndIrect, were dIS-
trIbuted across fundIng sources. These were reVIewed by
staff to ensure that each agency's costs were charged ap-
proprIately to the CIty. CopIes of these cost allocatIon
- 5 -
plans are available In the IndIVidual agency flIes which have
been placed In the CouncIl OffIce for CouncIl reVIew.
(4) Youth-Serving Agencles. DurIng the course of the pro-
posal reVIew and funding recommendatIon process, It became
IncreaSIngly clear that there was a need for a better coordI-
nated servIce-delivery system among the youth-serving agen-
CIes. In followIng CounCil's dIrectIon of requIrIng youth-
serVIce agenCIes to collaborate and network to the maXImum
extent possible In efforts to JOIn and share serVIces, work-
plans for youth-serVIng agenCIes Include a program obJectIve
to assess the status and effectIveness of youth serVIces
delIvery In Santa MonIca and to nlake recommendations to the
CIty for Improvements. A wrItten plan, JOIntly developed and
wrItten by the CIty-funded agenCIes In cooperatIon WIth other
local youth-serVIng agenCIes, WIll be submItted to the CIty
by November 1, 1985. A meetIng, sponsored by City staff and
attended by at least one representatIve from each of the
eight youth-serVIng agenCIes funded by the City, was held at
the end of July to begIn to address thIS obJectIve. CIty
staff outlIned the maJor issues relatIng to thIS Ob]ectlve
that were of concern to CounCIl and then entered lnto an open
diSCUSSIon WIth the agencies. WhIle ImpreSSIng on the agen-
CIes that they would be expected to take the leadership role,
CIty staff agreed to work cooperatlvely WIth the agenCIes In
meetIng this obJectIve.
- 6 -
BUDGET/FINANCIAL IMPACT
Because the amount of fundIng for the Conmrnnity SerVIce agencies
and the CommunIty and Nelghborhood Improvement ProJects detaIled
hereIn has prevIously been approved by CouncIl, no addltlonal
budgetary actIon IS necessary at thIS tIme.
RECOMMENDATION
It IS recommended that the CIty CouncIl:
1. approve the FY 1985-86 grantee workplans, budgets and con-
tract language as transmItted to CouncIl; and
2. authorlze the CIty Manager to execute the FY 1985-86 Communi-
ty Development Program contracts.
Prepared by: MaggIe Kennedy, Grants AdmInIstrator
CommunIty Development UnIt
Departnlent of CommunI ty and EconOIlll c Development
Attachments
- 7 -
AGREEMENT NO.
AGREEMENT
THIS
AGREEMENT,
entered
Into on thIS
and between the
day of
OF SANTA
,
19 8 5 , by
CITY
MONICA, a munIcIpal corporatIon (hereinafter referred to as
"CIty"), and
a CalIfornIa non-profIt corporatIon,
whose address IS
,
CalIfornIa
(hereInafter
referred to
as "Contractor"), IS made wIth reference to the followIng:
R Eel TAL s:
A. The City IS a munICIpal corporatIon duly organIzed and
valIdly existIng under the laws of the State of California wIth
the power to carryon ItS bUSIness as It IS now beIng conducted
under the statutes of the State of CalIfornIa and the Charter of
the CIty.
B. The HOUSIng and CommunIty Development Act of 1974, as
amended, combInes and replaces a wIde range of federal grants and
programs for conmJUnI ty development and comnmni ty serVI ces. Under
thIs Act, c 1 tIes are able to consolIdate fundI ng for var IOUS
programs Into a SIngle block of funds called a CommunIty
Development Block Grant (CDBG).
C. CDBG fundIng IS avaIlable to CItIes and urban counties
upon subml 55 Ion of a Statement of ComnlUni ty Development
- 1 -
ObJectIves
to
the
u.s.
Department
of
HousIng
and Urban
Development (HUD).
D.
One of these communi ty development obJectives
for the
CIty of Santa MonIca is
E.
CDBG
funds
may
be
transferred
to
a
non-profIt
organIzatIon as a subgrantee for use by that organIzation In
connectIon WIth actIvIties elIgIble under CDBG Regulations 24
C.F.R. Part 570 or wIth specIal wrItten approval by HUD.
F. The Contrac tor, a non-prof I t organ 1 zatIon, des 1 res to
provIde a
program and IS authorIzed to do so.
NOW, THEREFORE, It IS mutually agreed by and between the
underSIgned parties as follows:
1. TERM OF AGREEMENT.
The term of thIS Agreement shall commence July 1, 1985, and
shall contInue In effect untIl the program serVIces prOVided for
hereIn have been performed or until June 3@, 1986, whIchever
occurs later, unless thIS Agreement is sooner termInated as
prOVIded hereInafter.
SerVIces shall be undertaken and completed
In such a
sequence as
to assure theIr effectIveness In
ImplementIng thIS Agreement.
2. PROGRAM SERVICES TO BE PERFORMED BY CONTRACTOR.
A. The Contractor shall In a proper and satIsfactory manner
as determIned by the CIty, Implement, operate, conduct and
perform the dutIes, serVIces and functIons of saId program as set
forth In the ExhIbIts IdentIfIed below:
- 2 -
ExhIbIt A Grantee Workplan.
ExhIbIt B Grantee Budget.
ExhIbIt r< ,Prog_ram Status Re.port.
......
ExhIbit D FIscal Pro9ress Report.
ExhIbIt E CIty of Santa MonIca Agreement Ac:coyntln9
and AdmInIstratIve Handbook.
ExhIbIts A, B, C, D, and E, WhICh are attached hereto, are
made a part hereof by reference and Incorporated hereIn as If
fully set forth hereIn.
B. ThIS Agreement shall be Implemented and admInIstered In
complIance With all federal, state and local laws, and applIcable
prOVISIons of the HOUSIng and Community Development Act and the
regulatIons, procedures and standards promulgated thereunder by
the Department of HOUSIng and Urban Development, sometImes
referred to as HUD, IncludIng, but not lImIted to, the fOllOWIng:
(1) Title VI of the CiVIl RIghts Act of 1964 (Pub. L.
88-352; 42 U.S.C. 2000d et seq).
(2) TItle VIII of the CIVIl RIghts Act of 1968 (Pub. L.
ge-284; 42 U.S.C. 360'1 et seq.). Contractor shall adnl1nlster all
programs
and
actIVItIes
related
to housing
and communI ty
development In a manner to affir-lllatIvely fur-thee fale hOUSIng.
(3) Sectlon 109 of the HOUSIng and CommunI ty Development
Act, as amended, and ImplementIng
regulatIons at 24 C.P.R.
570.602.
(4) SectIon 3 of the HOUSing and Urban Development Act of
1968, as amended.
(5) ExecutIve Gr-der 11246, as amended by ExecutI ve Order s
- 3 -
11375 and 12.086, and ImplementIng regulatIons
Chapter 60'.
(6) ExecutIve Order 11063, as amended by ExecutIve Order
12259, and lIuplementlng regulatIons at 24 C.F.R. Part 107.
(7) SectIon 50'4 of the RehabIlItatIon Act of 1973 (Pub. L.
93-112; 29 U.S.C. 794), as amended, and ImplementIng regulatIons
when publIshed for effect.
(8) The Age DIscrImInatIon Act of 1975 (Pub. L. 94-135; 42
D.S.C. 61.01 et seq.), as amended, and Implementing regulatIons
when publIshed for effect.
(9) The relocatIon reqUIrements of TItle II and the
acqUISItIon reqUIrements of Tltle III of the Uniform RelocatIon
AssIstance and Real Property AcqUISItIon PolicIes Act of 1970,
and the ImplementIng regulatIons at 24 C.P.R. Part 42.
(Ill}) The labor standards requ I rements as set forth In 24
C.F.R. Part 570', Subpart K and HUD regulatIons Issued to
at 41 C.F.R.
Implement such reqUIrements.
(11) SectIon 40l(b) of the Lead-Based PaInt POIsonIng
PreventIon Act (42 U.S.C. 4831(b)), and ImplementIng regulatIons
Issued at 24 C.P.R. Part 35, Subpart B.
C. Contractor shall allow the duly authorIzed agents,
employees or servants of the CIty or the UnIted States of AmerIca
to Inspect, dur I ng normal bus I ness hour s, those records, books,
documents, and other data whIch pertaIn to the program.
3. REPORTS AND RECORDS.
A. The Contractor shall
hereInafter descrIbed reports
fIle each and every
or records WIth the
one of the
Cl ty on or
- 4 -
before the deadlIne set forth hereInbelow; provided, however,
tha t if the date of one of Sa Id deadl i nes falls on a Sunday I
Saturday, or legal holIday, then saId record or report shall be
flIed WIth the CIty on or before the fIrst business day precedIng
saId deadlIne date.
B. The Contractor shall subml t a quarterly Program Status
Report to the CIty. The Program Status Report shall Include
InformatIon on the percentage of Santa MonIca reSIdents served,
the percentage of lower-Income Santa MonIca residents served (80%
of L. A. County Medl an Income), and the percentage of ITllnOr I ty
Santa MonIca reSIdents served. The Program Status Report shall
be delIvered no later than the tenth (10th) workIng day of the
quarter folloWI ng the quarter for wh 1 ch I t is prepared. The
format to be utIlIzed In developing the Program Status Report 15
attached hereto as ExhIbit "CII and Incorporated hereln by this
reference.
C. The Con tractor shall subml t a quarter ly F Isca1 Progress
Report to the CI ty. The PI seal Report shall deta 11 the program
expendItures durIng the precedIng quarter and the percentage of
total program expendItures charged to the CIty. The FIscal
Report shall be delIvered no later than the tenth (10th) workIng
day of the quarter follOWIng the quarter for WhICh It IS
prepared. The format to be utILI zed In developIng the FIscal
Report IS attached hereto as ExhibIt 110" and lncorporated hereIn
by thIS reference.
- 5 -
D. In addItIon to the other requirements of this Agreement,
Contractor agrees to provlde any and all such other reports,
books, records and other data a5 may be reasonably requested by
the City.
E. EIther an orIgInal or legIble photostatic copy of each
and every report, book, record, or other data prepared or
supplIed by Contractor In accordance wIth the terms and
condItIons of thIS Agreement shall be retaIned by the Contractor
for a per- 1 ad of at least three (3) year s follow log the term of
thIS Agreement.
F. The Contractor shall fully cooperate WIth any authorIzed
agent, employee, or servant of the CIty or the Unlted States of
America who wishes to IntervIew or communicate Wl th any agent,
employee, or servant of the Contractor durIng any normal business
hours for purposes contaIned WIthIn this Agreement.
4. DISBURSEMENT OF FUNDS AND PROGRAM BUDGET.
A. The approprIatIon and dlsbursement of funds, the
Incurring of costs and expenses and other fInancial or accountIng
matters In regard to the performance of this Agreement shall be
pursuant to the Grantee Budget, WhlCh IS attached hereto as
Exhlbl t "B" and made a part of this Agreement by reference.
Contractor shall not spend or lncur costs or expenses of more
than $ of CDBG funds In the performance of thlS
Agreement.
B. For grantees who were funded by the Clty In the prev~ous
fiscal year, a 4% cost-of-llVlOg Increase wlll be awarded only If
- 6 -
a mInImum of 20% of the 1984-85 program's expendItures were
charged to non-CIty sources. The baSIS for determIning the
non-CIty support WIll be the fourth quarterly FIscal Report
(ExhIbit D) submItted to the CIty. This ITlay be verIfIed or
modIfIed In the course of the CIty'S fInanCIal reVIew of the
grantee at the end of the fiscal year. The cost-of-llvIng
increase IS Included In the amount speCIfIed In Section 4 A of
thIS Agreement but wlll be advanced as a part of the grantee's
regular quarterly advances only upon verIfIcatIon of the mInimum
non-C~ty expendIture sources for the prevIous fIscal year.
C. The Contractor agrees that the dollar amount bUdgeted
for IndIvidual tasks or prescribed perIods as set forth in said
Grantee Budget are the maXlnlUnt allowable, and no addI tIonal sums
shall be paId for serVIces or otherWIse rendered by the
Contractor under thIS Agreement WIthout prIor consent of the
Cl ty.
D. NotWIthstandIng any other prOVISIon of thIS Agreement or
exhIb 1 ts hereto, should the CI ty dec Ide or determI ne, after an
analYSIS and evaluatIon of any reports, records, or other
documents flIed by the Contractor under th1s Agreement, that an
adJustment or modIf1catlon of the Grantee Budget, IncludIng any
portIon thereof, 15 proper or necessary due to a devlatlon of the
measured performance of the Contractor from the relevant goals or
standards, the CIty may, at Its optIon and sole discretion, make
such adJustment or modlflcatlon upon glvlng of wrItten notIce to
the Contractor. The CIty shall confer wlth the Contractor prIor
to Issuance of wrItten notIce of adJustment or modifIcatIon. The
- 7 -
Ci ty shall be the sole Judge as to whether any adjustment or
modIfIcatIon IS proper or necessary.
E. Any unIt cost, or otherWIse, set forth in the exhibIts
to thIS Agreement may be adJusted by the CIty If (a) the perIod
of operation IS less than the perIod specIfIed In thIS Agreement,
(b) If the number of participants or geographical area to be
served 15 adjusted, or (c) If any other amendment or modification
IS made In thIS Agreement.
5. PAYMENTS TO CONTRACTOR.
A. The Ci ty shall advance funds to the Contractor on a
quarterly basIs. Calculation of advance payments shall be based
on the Contractor' s current cash on hand and the projectIon of
one quarter's expenses. The City shall remit saId advances
WithIn a reasonable time after receipt and approval by the City
of all required reports for the quarter, as speCified in Section
3 of thiS Agreement. The CIty may WIthhold ten (13) percent of
the grant amount as specifIed in ExhIbIt "B", Grantee Budget,
whIch is attached hereto and Incorporated herein by thIS
reference, untIl the submIssion by Contractor of all fInal
quarterly reports and subsequent reView and approval by the CIty.
B. The CIty may advance funds at any time during the term
of thiS Agreement, prOVIded such a request is made in writing by
the Contractor shOWIng adequate need for such. It is expressly
understood and agreed that In no event Will the total
compensatIon to be paid the Contractor exceed the total grant
amount speCIfIed 1n Section 4 A of thIS Agreement.
- 8 -
C. All compensatIon for thIs Agreement shall be paId by the
CIty out of funds receIved front the UnIted States of AmerIca, and
shall not be a charge upon the General Fund of the CI ty In any
manner. Contractor's rIght to receIve payments and dIsbursements
under thIS Agreement 15 lInlI ted by the extent to WhICh such funds
are made avaIlable to the CIty from the UnIted States of AmerIca.
6. INDEPENDENT CONTRACTOR.
The Contractor IS an Independent contractor and not an
agent, employee, offIcer, servant or otherWIse of the CIty.
Contractor shall, at Its sole cost and expense, comply wIth all
laws, rules, ordInances and regulatIons applicable to thIS
Agreement.
7. PUBLIC STATEMENTS.
The Contractor shall IndIcate In any press release or
statement to the publIC related to the program funded under thIs
Agreement that 1 t IS funded by the Ci ty of Santa MonIca from
federal CommunIty Development Block Grant funds.
8. INDEMNIFICATION AND HOLD HARMLESS.
A. Contractor shall IndemnIfy and hold harmless the CIty,
Its CIty CounCIl, boards and commIssIons, OffIcers, agents,
servants, and employees front and agaInst any and all loss,
damages, lIabIlIty, claIms, sUItS, costs and expenses,
whatsoever, IncludIng reasonable attorneys' fees, regardless of
the merIt or outcome of any such claIm or SUIt, arIsing from or
In any manner connected to the serVIces or work conducted
pursuant to thIS Agreement.
- 9 -
B. The Contractor agrees that all partlclpants In the
program assIgned to or employed by the Contractor In its
performance under thIS Agreement are agents, employees, offIcers
or servants of the Contractor and not the agents, employees,
offIcers or servants of the CIty. In thIS connectIon, the
Contractor shall, unless specl fI ca lly exempted by 1 aw, ma 1 ntain
approprIate Workers' CompensatIon Insurance coverage for each and
every saId partICIpant In the program.
9. INSURANCE.
On or before the commencement of the term of thIS Agreement,
Contractor shall furnIsh the CIty with certIfIcates shOWIng the
type, amount, class 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: liThe Insurance
covered by this certIficate WIll not be cancelled or materIally
altered, except after ten (10) days wrItten notIce has been
receIved by the CIty."
It IS agreed that Contractor shall maIntaIn In force at all
tImes durIng the perfornlance of thIS Agreement all approprIate
pOlIcies of Insurance, and that saId polICIes of Insurance shall
be secured fronL a good and responSIble company or companies,
dOl ng Insurance bUSI ness 1 n the S tate of CalIfornIa. All such
Insurance shall name the CIty as addItIonal Insured.
Contractor shall maIntain the follOWIng Insurance coverage:
A. Worker's Compensation. Contractor shall
prOVIde Workers' CompensatIon insurance and benefIts,
- Hl -
and/or medIcal and accIdent coverage as required by State
and/or Federal law.
B. LIabIlIty Insurance. Contractor shall purchase
lIabIlIty Insurance In the amount of FIve Hundred Thousand
Dollars ($5('HJ,e0!J) combined sIngle lImit for all lIabIlIty
for personal InJurIes, death, property damage, and, If
requIred by the CIty, comprehenSIve auto lIabIlIty,
profeSSIonal lIabIlIty or IncIdental malpractIce Insurance
to protect aga Inst llab III ty resul tl ng from any neglIgent
act or omIssion of any offIcer, agent, or employee of the
Contractor In the performance of thIS Agreement or from the
conditIon of any property owned or controlled by the
Contractor used in the performance of thIS Agreement.
C. CrIme Coverage. Contractor shall provide a
comprehensl ve cr Ime coverage pOll cy In an amount no less
than Twenty-FIve Thousand Dollars ($25,000) insurIng agaInst
loss of money, secur 1 t 1 es or other proper ty re fer red to
hereunder, which may result from (a) dIshonest or fraudulent
acts of offIcers, dIrectors, agents or employees, or (b)
dIsappearance, destructIon or wrongful abstractIon Ins Ide
the prerrllses of the Contractor whIle In care, custody, or
control of the Contractor I or (c) sustaIned through forgery
or alteratIon of checks, drafts, or any order or dIrectIon
to pay a sum certaIn of money.
D. SubrogatIon WaIver. Contractor agrees that In
the event of loss due to any of the perIls for WhICh It has
agreed to prOVIde Insurance, that Contractor shall look
solely to ItS Insurance for recovery. Contractor hereby
- 11 -
grants to CIty, on behalf of any Insurer provIdIng Insurance
to eIther Contractor or the CIty of Santa MonIca WIth
respec t to the serv Ices of Contrac tor here 1 n, . a waIver of
any rIght of subrogatIon whIch any such Insurer of said
Contractor may acqUIre agaInst CIty by VIrtue of the payment
of any loss under such insurance.
E. FaIlure to Secure. If Contractor at any tIme
durIng the term hereof, should fail to secure or maIntaIn
the foregol ng Insurance, CI ty shall be permI tted to obtaI n
such Insurance In the Contractor1s name 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
perml tted by law computed fronl the date wr I tten notice IS
receIved that the premIums have been paId.
F. AddItIonal Insured. The CIty, Its CIty
CounCIl, boards and commISSIons, offIcers, agents, servants
and employees shall be named as an addItional Insured under
all polICIes of Insurance requIred by thIS Agreement. 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 addI tlonal Insured named hereIn shall not be held
lIable for any premIum or expense of any nature on thl s
POlICY or any extenSIon thereof. Any other Insurance held
by an addItIonal Insured shall not be requIred to contrIbute
anythIng toward any loss or expense covered by the Insurance
prOVIded by thl s POlICY. Proceeds from any such POlICY or
pol ic les shall be payable to the CI ty pr lmar lly, and to the
- 12 -
Contractor secondar1ly, 1f necessary.
10. PERMITS AND LICENSES.
Contractor, at 1ts sole expense, shall obtaIn and ma1nta1n
dur1ng the term of thIS Agreement, all appropriate perm1ts,
llcenses and cert1f1cates that may be requIred 1n connectIon WIth
the performance of serV1ces hereunder.
11. PROHIBITION AGAINST TRANSFERS.
Contractor shall not ass1gn, sublease, hypothecate, or
transfer thIS Agreement or any interest thereIn d1rectly or
Indirectly, by operation of law or otherwIse wIthout the prior
wrItten consent of the CIty; any attempt to do so w1thout saId
consent shall be null and VOId, and any aSSIgnee, sublessee,
hypothecate or transferee shall acqu1re no rIght or Interest by
reason of such attempted ass1gnment, hypothecat1on or transfer.
In the event that a subcontract, ass1gnment or transfer of th1S
Agreement or any port i on thereof, 1S approved by the C1 ty, all
appropriate prOV1SIon and requ1rements of thIS Agreement shall
apply to any subcontract, aSSIgnment or transfer.
12. NOTICE TO CITY OF LABOR DISPUTES.
Whenever the Contractor has knowledge that any actual or
potentIal labor dIspute Involv1ng clIents or other employees IS
delaY1ng or threatens to delay the t1mely performance of thIS
Agreement, the Contractor shall Immed1ately gIve notice thereof
includIng all pert1nent InformatIon w1th respect thereto.
13. COPYRIGHT.
No material produced In whole or in part under thIS
- 13 -
Agreement shall be sUbJect to copyrIght In the United States or
In any other country.
UnrestrIcted authorIty to pUblISh,
dIsclose, dIstrIbute and otherWIse use, In whole or In part, any
reports, data or other materIals prepared under thIS AgreenLent
vests wIth the CIty and the UnIted States Department of HousIng
and Urban Development.
14. LIMITATION ON COSTS.
No cost shall be allowed under thIS Agreement WhICh IS not
Included 1n the Contractor's Grantee Budget, attached hereto as
ExhIbIt "B" and Incorporated hereIn by this reference.
15. NONEXPENDABLE PROPERTY.
An
Inventory shall
be ma 1 nta Ined
for
each
1 tern 0 f
nonexpendable property acqUIred WI th funds prOVIded under this
Agreement.
Nonexpendable
property
shall
Include
tangIble
personal property (IncludIng but not llmlted to offIce eqUIpment)
costIng One Hundred Dollars ($100) or more per unIt and haVIng a
useful lIfe of one (1) year or more, real property and any
interest In such real property, and any mortgage, trust deed, or
other encumbrance of real property, and the funds receIved from
the sale of any such encumbrance of real property. The
condItIon,
locatIon
and
dISpOSItIon
of
such nonexpendable
property shall be reported to the CI ty at such times as are
speCIfIed by the CIty and USIng the format prOVIded by the CIty.
In case of the program's termInation,
ti tIe to such
non-expendable property shall vest 10 the CIty.
The CIty
reserves the rIght to determIoe
the fInal dISpOSItIon of saId
- 14 -
nonexpendable property, includIng funds and/or any other asset
derIved therefrom. Any utIlIzation of funds from such an
encumbrance or other dISpOSItIon, IncludIng the sale of
nonexpendable property, must have approval of the CIty and
otherWIse comply WIth federal regulations. Contractor shall
have the optIon to purchase such eqUIpment from the Cl ty, WI th
the proceeds of such sale to revert back to the CIty and the CDBG
program.
Contractor shall obtaIn at least three
(3) documented
estImates prIor to purchasIng eqUIpment over One Hundred Dollars
($100) per unIt In value as approved In the budget. All
eqUIpment purchases must be approved 10 the budget and shall be
in1 tlated no later than the thIrd quarter of the program year,
except under speCIal CIrcumstances WI th pr lor approval of the
CIty. The above prOVISIons apply to leaSIng as well as to
purchasIng equipment.
16. RECORDS AND ACCOUNTABILITY.
A. Records shall be maintaIned In accordance WIth the CIty
of Santa MonIca Agreement Accountlns and AdmInIstratIve Handbook,
attached hereto as ExhIbl t "E" and Incorporated hereIn by thIS
reference and WI th standards of grantee fl nanclal management as
speCIfIed In OMB CIrculars A-87, A-102, A-ll0 and A-122.
B. All expenditures shall be supported by properly executed
payroll, tUlle records, InVOIces, contrac ts, vouchers, order s or
other accountIng documents pertaIning in whole or In part to thIS
- 15 -
Agreement, and shall be clearly ~dent~f~ed and readIly accessible
to City and Federal personnel or the~r agents.
C. Contractor agrees to an aud I t conducted by an
Independent aud~t~ng fIrm to determIne, at a mInimum, the fIscal
Integr~ty
of
fInancial
requIrements.
Such
transactIons and reports, and the
regulations and admInIstratIve
aud I ts shall be scheduled WI th reasonable
but not less frequently than once
agrees to establIsh a systematIc
approprIate resolutIon of audit
laws,
compliance
with
frequency, usually annually,
every two years. Contractor
method to assure tImely and
fIndIngs and recommendat~ons.
D. Contractor agrees to accept responsIbIlIty for
receIvIng, replYIng to and/or complYIng wIth any audIt exceptIons
deternll ned by appropr la te CI ty, State or Federal aud I t agenc leB
occur lng as a resul t of I ts per formance under thIS Agreement.
Contractor also agrees to pay to the CIty, wIthIn thIrty (30)
days of demand by the CIty, the full amount of the CIty'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 reImburse the CIty for any dIsallowed expendItures
or mIsuse of funds shall surVIve the termInatIon or expIration of
thIS Agreement.
17. RETURN OF NONEXPENDED FONDS.
In the event Contractor IS advanced any funds pursuant to
thIS Agreement, Contractor agrees that upon completion or
- 16 -
termInatIon of this Agreement, any unexpended funds, or funds not
Irrevocably commItted to the program, shall be returned to the
CIty withIn ten (10) workIng days of the Agreement expIratIon or
termInatIon date.
18. STAFFING REQUIREMENTS.
Contractor shall provIde Job descrIptIons for all posItIons
under this Agreement. Contractor shall hIre and employ under
thIS Agreement only those posItIons lIsted In the Grantee Budget.
Contractor shall not change the Job descrIptIons or exceed the
budgeted salarIes for saId posItIons wIthout wrItten approval of
the CIty. The name and qualIfIcatIons of any personnel hIred to
fIll a posItIon desIgned to receIve a salary under thIS Agreement
of Seven Thousand, FIve Hundred Dollar s ($7,500) or more per
annum, whether totally or partIally supported by funds provIded
under thIS Agreement shall be kept on fIle by the Contractor for
CIty reVIew. City approval of such personnel shall not be
wIthheld except for reasons pertaInIng to SectIons 19 and 21,
hereIn, or as requIred by an approprIate Federal agency.
19. NEPOTISM.
Contractor shall not hIre nor permIt the hIrIng of any
person in a posItIon funded under thIS Agreement If a member of
the person I S ImmedIate famIly IS an elected offIcIal of or 15
employed In an admInistratIve capacIty as an employee of the City
of Santa MonIca, or IS an employee of thIS Contractor or hIs/her
subcontractors. For the purpose of thIS sectIon, the term
"ImmedIate famIly" means WIfe, husband, son, daughter, mother,
father, brother, sIster, brother-In-law, SIster-In-law,
- 17 -
son-In-law, daughter-In-law, mother-In-law, father-lo-law, aunt,
uncle,
nIece,
nephew,
stepparent
and
stepchIld.
The term
"admInIstratIve capacIty" means persons who have selectIon,
hIrIng or supervIsory responsIbIlitIes.
20. CONFLICT OF INTEREST.
Contractor covenants that neIther the Contractor nor any of
I ts agents or employees who presently exerCIse any functIon or
responsIbIlIty In connectIon WIth thIS program has or shall have
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 performance pursuant to the Agreement.
For the purposes
of thIS section, an economIC or fInanCIal Interest Includes:
A. Any bUSIness entity In WhICh the person has a dIrect or
an IndIrect Investment worth more than One Thousand Dollars
($1,000) .
B. Any real property In WhICh the person has a dIrect or
indIrect Interest worth more than One Thousand Dollars ($1,0'0'0').
c.
Any source of InCOnte,
loans or gIfts which, when
comb1ned, are worth Two Hundred FIfty Dollars ($250) or more 1n
value receIved by or promIsed to the person w1thin twelve (12)
months pr10r to the tIme thIS Agreement was executed.
D. Any business entIty in which the person IS a director,
offIcer, partner, trustee, entployee, or holds any positIon of
management.
- 18 -
For the purpose of thIS sectIon, dIrect or IndIrect Interest
means any lnvestment or Interest owned by the spouse, parent,
chIld, brother, SIster, father-In-law, mother-In-law,
brother-In-law, SIster-In-law, daughter-In-law, son-In-law, or
the person, by an agent on hiS/her behalf, by any busIness entIty
controlled by saId person or by a trust In WhIch he/she has
substantlal Interest. A bUSIness entIty IS controlled by a
person if that person, his/her agent, or a relatIve, as defined
above, possesses more than fIfty percent (50%) of the ownershIp
Interest. A person has a substantial Interest In a trust If saId
person or an above-defIned relatIve has a current or future
Interest worth more than One Thousand Dollars ($1,000).
21. AFFIRMATIVE ACTION.
A. Contractor WIll comply WIth TItle VI of the CIVIl RIghts
Act of 1964 (PublIC Law 88-352), and In accordance WIth TItle VI
of that Act, no person In the UnIted States shall, on the grounds
of race, creed, color, dIsabIlIty, natIonal orIgln, sex, age,
sexual preference, polItIcal affIlIation or belIefs, be excluded
from partIcIpatIon In, be denIed the benefits of, or otherWIse
subJected to dIscrImInatIon under any program or actIVIty for
WhICh the Contr actor recel ved Federal fI nane lal ass 1 stance and
WIll ImmedIately take any measures necessary to effectuate thIS
Agreement. Any subcontracts awarded by Contractor shall
addItIonally contaIn thIS prOVISIon.
B. Contractor shall keep such records and submIt such
reports concernIng the raCIal and ethnIC orIgln of applIcants for
ernployrnen t and employees as the Secretary of HUD may requ I re.
- 19 -
Contractor agrees to conlply WI th such rules, regulations or
gUIdelInes as the Secretary of HUD may Issue to Implement these
requIrements.
C. Contractor agrees to comply wIth the requirements of
SectIon 3 of the HousIng and Urban Development Act of 1968, as
amended,
requIrIng
that
to
the greatest
extent
feasIble,
opportunItIes for traInIng and employment be gIven lower-Income
resIdents of the program area and any contracts for 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 progranl.
D. In accordance WIth the CIty'S Women and MInorIty
BUSIness EnterprIse (WMBE) program approved by CIty CounCIl on
March 8, 1983, Contractor agrees to reVIew the CIty'S WMBE
LIbrary of 01 rec tor les and MInor I ty Vendor s LI st and consIder
such sources 10 the procurement of eqUIpment, materIal, supplIes
and profeSSIonal serVIces.
E. If Involved In the Implementation of a direct benefIt
actIVIty, Contractor shall compIle monthly statIstICS which
indIcate the number of direct benefiCIarIes In the follOWIng
categories:
Low and Moderate Income (80% of L.A. County MedIan
Income), Low Income (50% of L. A. County Median Income); WhI te
not HI spanl c, Black not HI spanIc, Amer lcan IndIan or Alaskan
Native, HIspanIC, ASlan or PaCIfIC Islander; and Female-Headed
Household.
- 20 -
22. SUSPENSION BY CITY FOR UNSATISFACTORY PERFORMANCE.
Should the CIty at any tIme become dIssatIsfIed wIth
Contractor I S performance under thIS Agreement, the CI ty Manager
may suspend the Cl ty I S per formance under thl s Agreement
ImmedIately by gIvIng notIce In wrItIng to the Contractor,
pursuant to SectIon 24, at least fIve (5) days before the
effectl ve date of such suspenSIon. Such notice shall state the
reasons for dissatIsfactIon. Upon receIpt of thIS notice,
performance shall be suspended by the Contractor. The Contractor
may appeal the suspensIon to the CIty CouncIl at the next regular
CIty CouncIl meetIng; however, the appeal shall not stay the
suspension. The CIty Manager shall lnlITIedlately notIfy the CIty
CounCIl of any actIon to suspend the contract. The CIty shall be
the sole judge as to whether the performance of the Contractor IS
satIsfactory.
23. TERMINATION.
In the event that the Contractor defaults In the performance
of thIS Agreement or materIally breaches any of I ts proVISIons,
the CI ty shall have the option of termInatIng thIS Agreement
ImmedIately by gIvIng wrItten notIficatIon as provIded for
hereInafter In SectIon 24. Such notIce shall state the reasons
for the termInatIon. The Contractor may appeal the termInation
to the CIty CounCIl; however, the appeal shall not stay the
terrnlna tl on. The Cl ty Manager shall ImmedIately noti fy the CI ty
CounCIl of any actIon to termInate the contract.
- 21 -
Thls Agreement may be ternlJ.nated by either party by glvlng
sixty (60) days, prIor wrItten notIce wIthout cause, to the other
party as provIded for In thIS Agreement hereInbelow.
ThIS Agreement shall ImmedIately termInate if the federal
government
termInates
or
otherWIse
cancels
Its
CommunIty
Development Block Grant program or any portIon thereof and Cl ty
shall In~edIately gIve Contractor wrItten notIce thereof.
If thIS Agreement IS termlnated In accordance wIth thIS
SectIon, Contractor shall, WI thIn fi ve (5) days from receipt of
notIce of termInatIon, give notIce of such termInatIon to all
other partIes he/she has subcontracted WIth for serVIces In
furtherance of thIS Agreement.
Upon any terminatIon, each party
shall payor refund to the other party all approprIate sums under
thIS Agreement.
24. NOTICES.
A. All notIces, demands, requests, or approvals WhICh are
required under thIS Agreement, or which eIther the CIty or
Contractor may deSIre to serve upon the other, shall be 10
wrItIng and shall be conclusIvely deemed served when delIvered
personally or forty-eIght (48) hours after the deposIt thereof In
the UnIted States mall, postage prepaId, regIstered or certIfIed,
and addressed as hereInafter provIded.
- 22 -
B. All notIces, demands, requests, or approval s from the
Contractor to the CIty shall be addressed as follows:
CIty of Santa MonIca
Department of CommunIty and EconomIC Development
1685 MaIn Street
Santa MonIca, CA 90401
C. All no tI ces, demands, requests or approvals from the
City to the Contractor shall be addressed as follows:
25. AUTHORITY TO BIND CONTRACTOR.
Upon receIpt of a fully executed copy of thIS Agreement, the
Contractor shall furnIsh to the CIty a wrItten lIst of the
persons authorIzed to execute, on behalf of the Contractor,
agreements, contracts, modIfIcatIons to contracts, or other
documen ts as they may be requI red by the CI ty.
In the event
authorIty
IS
delegated
to
a
pOSItIon
(e.g.,
PresIdent,
VIce-PreSlden t, Treasurer, etc.) rather than to an IndI vIdual,
the lIst of posItions so authorized shall be furnIshed.
26. WARRANTY OF SERVICES.
The Contractor warrants and guarantees that all serVIces
perfornled hereunder for the C1 ty by the Contractor shall be
performed In a manner commensurate WIth the hIghest profesSIonal
standards.
- 23 -
27. EVALUATION.
Contractor hereby agrees to partIcipate fully, wIth gUIdance
and ass I stance
from the CI ty,
In
the
ImplementatIon and
maIntenance of an evaluatIon system to contInuously monitor the
program.
The serVIces descrIbed herein shall be reVIewed by the
Department of ConlmunI ty and EconomIC Development on an ongoIng
baSIS.
The content of the Department's fIndIngs shall be
dIscussed wIth the Contractor prIor to ItS submISSIon to the CIty
CouncIl.
28. RELIGIOOS ACTIVITIES.
A. No program funded under thIS Agreement may be Involved
In any relIgIOUS actIVIties, nor llLay funds prOVided under thIS
Agreement be expended for relIgIOUS or anti-relIgious activIties.
B. No equipment, materIals, or prellLIses acqUIred, donated
or designated as a part of the program under the terms of this
Agreement may be used dIrectly nor IndIrectly for any relIgIOUS
or antI-relIgIous actIVIty durIng program bUSIness hours.
29. POLITICAL ACTIVITIES.
A. 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 program funded under the
terms of thIS Agreement for any polItIcal purpose as hereInafter
defIned.
PolItIcal purpose IS defIned as partIcipatIon In, or
interventIon In (InCludIng the publIshIng or dIstrIbutIng of
statements) any POlItical campaIgn on behalf of or in OppOSItIon
- 24 -
to any candIdate for publIC offIce, any InItIative, referenda,
ballot measure or recall or any partIsan or non-partisan
electoral actIVIty, IncludIng but no lImIted to:
(1) SponsorIng or conductIng candIdates! meetIngs.
(2) Voter regIstratIon actIVIty.
(3) Voter transportatIon.
(4) Any partIsan or non-partIsan actIVIty deSIgned to pass
or defeat any InItIatIve, recall or referenda.
(5) CIrculatIon of petItIons to qualIfy InItIatives,
referenda or recall measures for local or State ballots.
B. Contractor shall not expend any funds prOVIded under
this Agreement for transportatIon for large-scale publIC
assemblIes for the purpose of influenCIng publIC bodies regardIng
actIVItIes 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 program funded under the
terms of thIS Agreement for lobbYIng actIVIty that IS prohIbIted
by SectIon 5@I(c) (3) of the Internal Revenue Code or by
regulatIons and legIslatIon set forth In SectIon 2 of thIS
Agreement. The CIty shall prOVIde Contractor WIth admInIstrative
InstructIons regardIng relevant Internal Revenue SerVIce Code
defInItIons and prOVISIons. Contractor IS Independently
responSIble for complYIng WIth all statutes and regulatIons.
- 25 -
30. INTEGRATED AGREEMENT.
representatlons,
lnducements,
promlses,
acknowledges
or agreements,
that
orally
no
or
Each
party
to thl S
Agreement
otherwl se, have been made by any party, or anyone actlng on
behalf of any party, WhlCh are not embodled hereln. Any amendment
or modlflcatlon to thlS Agreement wlll be effectlve only If 1n
wrltlng and signed by both parties.
31. PARTIAL INVALIDITY.
If any provlslon of thls Agreement IS held by any competent
court to be lnvalld, vOld, or unenforceable, the remalnlng
proVlslons shall nevertheless contlnue In full force and effect.
32. WAIVER.
A walver by the Clty of any breach of any term, covenant, or
condltlon contaIned hereln shall not be deemed to be a waiver of
any subsequent breach of the same or any other term, covenant, or
condl tlon conta Ined hereIn whether of the same or a dl fferent
charac ter.
33. GOVERNING LAW.
The valld 1 ty of thl s Ag reement and any of 1 ts terms 01:
prOVISIons, as well as the rIghts and dutIes hereunder, shall be
interpreted and construed pursuant to and ln accordance WIth the
laws of the State of Callfornla.
34. SECTION HEADINGS.
The sectlon headlngs appearing hereln shall not be deemed to
- 26 -
govern, llmlt, modIfy or In any way effect the scope, meaning or
intent of these condItIons.
35. COST OF LITIGATION.
If any legal actIon IS necessary to enforce any prOVIsion
hereof or for damages by reason of an alleged breach of any
provlslons of thIS Agreement, the prevaIlIng party shall be
entItled to receIve from the lOSIng party all costs and expenses
in such amount as the court may adJudge to be reasonable
attorney's fees.
- 27 -
IN WITNESS WHEREOF, the partIes have caused thIS Agreement
to be executed the day and year fIrst above wrItten.
CITY OF SANTA MONICA,
a munIcIpal corporatIon
BY
John JalIli
CIty Manager
APPROVED AS TO FORM:
~......~
ROBERT M. MYERS
CIty Attorney
-
CONTRACTOR:
a CalifornIa
corporatIon
non-profIt
BY
- 28 -