SR-10-01-1985-6JC/ED:EDD:SW:mb
Council Meeting 10/1/85
TO: Mayor and City Council
FROM: City Staff
ocr i r~e~
Santa Monica, California
SUBJECT: Recommendation to Approve the FY 1985-86 Third Street
Development Corporation (TSDC) Contract and to Authorize
the City Manager to Execute the TSDC Contract
IN~°aonocTlox
'This report transmits the FY 1985-86 Third Street Development
Corporation contract (Attachment 1) for City Council approval and
authorization for the City Manager to execute the contract.
BacxcaaoND
As part of the City of Santa Monica FY 1985-86 Budget, City Coun-
cil allocated $215,256 of General Funds for services by the `Phird
Street Development Corporation in connection with the Third
Street Mall revitalization efforts. since that time, staff has
developed the appropriate FY 1985-86 contract language while the
Third Street Development Corporation has refined their FY 1985-86
Grantee Workplan and Budget.
DISCUSSION
The FY 1985-86 TSDC contract language was developed from the
standard General Fund grantee contract, reviewed by the Depart-
ment of Community and Economic Development, and approved as to
t n
OCT 1 1965
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form by the City Attorney's Office. The Grantee Workplan (Ex-
hibit A to the TSDC contract) was developed by the TSDC and is
based on the approved FY 1985-85 budget. The Workplan reflects
any budget variance from TSDC request to final Council alloca-
tion. The Grantee Budget (Exhibit B to the TSDC contract) was
also developed by the TSDC and is pursuant to the approved City
Council budget allocation.
BDDCET/FISCAL IMPACT
The amount of funding for the Third Street Development Corpora-
tion was previously approved by City Council in account number
15-200-253-725-707 in the amount of $215,256, therefore no addi-
tional budgetary action is necessary at this time.
RECOFIMEIdDATIaN
It is respectfully recommended that the City Council:
1. approve the FY 1985-8& Third Street Development Corpora-
tion contract as transmitted to Councils and
2. authorize the City Manager to execute the FY 1985-86
Third Street Development Corporation contract.
Prepared by: Sidney L. White, Sr. Admin. Analyst
Economic Development Division
Community and Economic Development Department
Attachments
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J ~
1
AGREEMENT N0. 4545
AGREEMENT
THIS AGREEMENT, entered into on this day of
1985,. by and between the CITY OF SAN'PA
MONICA, a municipal corporation. (hereinafter referred to as
"City"), and Third Street Development Corporation, a California
non-profit corporation, whose address is 1427 Santa Monica Mall
Suite 202, Santa Monica, California 90401 (hereinafter referred
to as "Contractor"), is made with reference to the following:
R E C I T A L 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 carry on its business as it is now being conducted
under the statutes of the State of California and the Charter of
the City.
B. The Contractor is a non-profit Corporation, duly
organized, validly existing, and in good standing under the laws
of the State of California with corporate power to own property
and carry on its business as it is now being conducted.
C. City General Funds may be transferred to a non-profit
organization as grantee for use by that organization in
connection with activities approved by the City.
D. The City desires to fund a range of community service
activities to benefit the residents of the City.
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`y~
E. The Contractor possesses the abilities and judgment for
conducting the activities herein referred to and is especially
equipped, qualified and ex perienced in the performance of such
activities.
F. The City desires to engage Contractor to render certain
community services hereinafter described.
NOW, THEREFORE, it is mutually agreed by and between the
undersigned parties as follows:
1. TERt+I OF AGREEiNENT.
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 30, 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:
Exhibit A Grantee 'vdorkplan.
Exhibit B Grantee Budget.
Exhibit C Program Status Report.
Exhibit D Fiscal Progress Re ort.
Exhibit E City of Santa Monica A regiment Accounti
and Administrative Handbook.
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'C
,.
Exhibits A, B C; D; ~ and E, which- are' attached hereto; are
made a part hereof blY reference and incorporated herein as if
fully set forth herein.
B. Contractor shall comply with all Federal, State and
Local Laws, and applicable City guidelines and the regulations,
procedures and standards promulgated thereunder by the City,
State and Federal governments including, but not limited to, the
following:
(1) Selection of participants and staff.
(2) Use of City funds.
(3) Requirements for record keeping and reporting.
(4) Provisions relative to the compensation and working
conditions of participants.
(5) iJOndiscrimination requirements.
C. Contractor shall allow the duly authorized agents,
employees or servants of the City to inspect, 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 every one of the
hereinafter described reports or records with the City on or
before the deadline set forth hereinbelow; provided, However,
that if the date of one of said deadlines falls on a Sunday,
Saturday, or legal holiday, then said record or report shall be
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filed with the City on or before the first business day preceding
said deadline date.
B. The Contractor shall submit a quarterly Program Status
Report to the City. The Program Status Report shall include
information indicating how well the Third Street Development
Corporation is meeting its program objectives. The Program
Status 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 utilized in developing the Program
Status Report is attached hereto as Exhibit "C" and incorporated
herein by this reference.
C. The Contractor shall submit a quarterly Fiscal Progress
Report to the City. The Fiscal Report shall detail 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 utilized in developing-this report is
attached hereto as Exhibit "D" and incorporated herein by this
reference.
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 City.
E. Either an original or legible photostatic copy of each
and every report, book, record, or other data prepared or
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supplied by Contractor in accordance with the terms and
conditions of this Agreement shall be retained by the Contractor
for a period of at least three (3) years following the term of
this Agreement.
F. The Contractor shall fully cooperate with any authorized
agent, employee, or servant of the City who wishes to interview
or communicate with 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 disbursement 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, which is attached hereto as
Exhibit "B" and made a part of this Agreement by reference.
Contractor shall not spend or incur costs or expenses of more
than $ 215,256 of City 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 said
Grantee Budget are the maximum allowable, and no additional sums
shall be paid for services or otherwise rendered by the
Contractor under this Agreement without prior consent of the
City.
C. Notwithstanding any other provision of this Agreement or
exhibits hereto, should the City decide or determine, after an
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analysis and evaluation of any reports, records, or other
documents filed by the Contractor under this Agreement, that. an
adjustment or modification 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 City may, at its option and sole discretion, make
such adjustment or modification upon giving of written notice to
the Contractor. The City shall confer with the Contractor prior
to issuance of written notice of adjustment or modification. The
City shall be the sole judge as to whether any adjustment or
modification is proper or necessary.
D. 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 is adjusted, or (c) if any other amendment or modification
is made in this Agreement.
5. PAYMENTS TO CONTRACTOR.
A. The City 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 (10) percent of
the grant amount as specified in Exhibit "B", Grantee Budget,
which is attached hereto and incorporated herein by this
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reference, until- the submission by-^Cantractor of a21 final
quarterly reports and aubsequent 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 in Section 4 A of this Agreement.
6. INDEPEiVDENT 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 it is funded by the City of Santa Monica.
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 from 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
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in any manner connected to the services or work conducted
pursuant to this Agreement.
B. The Contractor ayrees that all participants 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 specifically exempted by law, maintain
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: "The 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 performance of this Agreement all appropriate
policies of insurance, and that said policies of insurance shall
be secured from a good and responsible company or companies,
doing insurance business in the State of California. All such
insurance shall name the City as additional insured.
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~~ =Contractor shall~ma-intain the foi~lowng insurance coverages
A. Workef's Compensation. Contractor shall
provide Workers' Compensation insurance and benefits,
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 ($500,600) 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 against liability resulting 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
comprehensive crime coverage policy in an amount no less
than Twenty-Five Thousand Dollars ($25,000) insuring against
loss of 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 (c) sustained through forgery
or alteration of checks, drafts, or any order or direction
to pay a sum certain of money.
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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
grants to City, on behalf of any insurer providing insurance
to either Contractor or the City of Santa Monica with
respect to the services of Contractor herein, 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 foregoing insurance, City shall be permitted to obtain
such insurance in the Contractor's 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
permitted by law computed from the date written 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 additional insured named herein shall not be held
liable for any premium or expense of any nature on this
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policy or any ex tension 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 this policy. Proceeds from any such policy or
policies shall be payable to the City primarily, and to the
Contractor secondarily, if necessary.
10. PERMITS AND LICENSES.
Contractor, at its sole expense, shall obtain and maintain
during the term of this Agreement, all appropriate permits,
licenses and certificates that may be required in connection with
the performance of services hereunder.
11. PROHIBITION AGAINST TRANSFERS.
Contractor shall not assign, sublease, hypothecate, or
transfer this Agreement or any interest therein directly or
indirectly, by operation of law or otherwise without the prior
written consent of the City; any attempt to do so without said
consent shall be null and void, and any assignee, sublessee,
hypothecate or transferee shall acquire no right or interest by
reason of such attempted assignment, hypothecation or transfer.
In the event that a subcontract, assignment or transfer of this
Agreement or any portion thereof, is approved by the City, all
appropriate provision and requirements of this Agreement shall
apply to any subcontract, assignment or transfer.
12. NOTICE TO CPPY OF LABOR DISPUTES.
Whenever the Contractor has knowledge that any actual or
potential labor dispute involving clients or other employees is
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delaying or threatens to delay the timely performance of this
Agreement, the Contractor shall immediately give notice thereof
including all pertinent information with respect thereto.
13. COPYRIGHT..
No material produced in whole
Agreement shall be subject to copyright
in any other country. Unrestricted
disclose, distribute and otherwise use,
reports, data or other materials prepa
vests with the City.
or in part under this
in the United States or
authority to publish,
in whole or in part, any
red under this Agreement
14. LIMITA'!'ION ON COSTS.
No cost shall be allowed under this Agreement which is not
included in the Contractor's Grantee Budget, attached hereto as
Exhibit "B" and incorporated herein by this reference.
15. NONEXPENDABLE PROPERTY.
An inventory shall be maintained for each item of
nonexpendable 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 ($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.
In case of the program's termination, title to such
non-ex pendable property shall vest in the City. The City
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reserves the right-to determine the fiinal disposition of said
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.
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 in the budget and shall be
initiated no later than the third quarter of the program year,
except under special circumstances with prior 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 Accounting and Administrative Handbook,
attached hereto as Exhibit "E" and incorporated herein by this
reference and any guidelines issued by the Department of
Community and Economic Development.
B. All expenditures shall be supported by properly executed
payroll, time records, invoices, contracts, vouchers, orders or
other accounting documents pertaining in whole or in part to this
Agreement, and shall be clearly identified and readily accessible
to City personnel or agents.
C. Contractor agrees to an audit conducted by an
independent auditing firm to determine, at a minimum, the fiscal
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integrity of financial transactions and reports, and the
compliance with laws, `regulations and administrative
requirements. Such audits shall be scheduled with reasonable
frequency, usually annually, but not less frequently than once
every two years. Contractor agrees to establish a systematic
method to assure timely and appropriate resolution of audit
findings and recommendations.
D. Contractor agrees to accept responsibility for
receiving, replying to andjor complying with any audit exceptions
determined by appropriate City, State or Federal audit agencies
occuring as a result of its performance 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.
1"/. RETURN OF NONEXPENDED FUNDS.
In the event Contractor is advanced any funds pursuant to
this Agreement, Contractor agrees that upon completion or
termination of this Agreement, any unex pended 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.
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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 Dollars ($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..
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's immediate family is an elected official of or is
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,
son-in-law, daughter-in-law,- mother-in-law, father-in-law, aunt,
uncle, niece, nephew, stepparent and stepchild. The term
"administrative capacity" means persons who have selection,
hiring or supervisory responsibilities.
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20. CONFLICT OF IN'PEREST.
Contractor covenants that neither the Contractor nor any of
its 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 ($1,000).
C. Any source of income, loans or gifts which, when
combined, are worth Two Hundred Fifty Dollars ($250) or more in
value received by or promised to the person within twelve (12)
months prior to the time this Agreement was executed.
D. Any business entity in which the person is a director,
officer, partner, trustee, employee, or holds any position of
management.
For the purpose of this section, direct or indirect interest
means any investment 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
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substantial -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. AFFIRMA'PIVE ACTION.
A. Contractor will comply with Title VI of the Civil kights
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 origin, 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 Contractor received financial assistance 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 origin of applicants for
employment and employees as the City may require. Contractor
agrees to comply with such rules, regulations or guidelines as
the City may issue to implement these requirements. Contractor
shall abide by and conform to any and all laws, ordinances,
regulations and policies of the United States, the state of
California and the City of Santa Monica.
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C. 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 Directories and Minority Vendors List and consider
such sources in the procurement of equipment, material, supplies
and professional services.
22. SUSPENSION BY CITY FOR UNSATISFAC'PORY PERFORMANCE.
Should the City at any time become dissatisfied with
Contractor's performance under this Agreement, the City Manager
may suspend the City's performance under this Agreement
immediately by giving notice in writing. to the Contractor,
pursuant to Section 24, at least five (5) days before the
effective 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 immediately 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. TERMIi1ATI0N.
In the event that the Contractor defaults in the performance
of this Agreement or materially breaches any of its provisions,
the City 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
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for the t2rminatiorr.- The Contractor--may appeal the termination
to the City Council;' however, the appeal shall not stay the
termination. The City Manager shall immediately notify the City
Council of any action to terminate the contract.
This Agreement may be terminated by either party by giving
sixty (60) days, prior written notice without cause, to the other
party as provided for in this Agreement hereinbelow.
If this Agreement is terminated in accordance with this
Section, Contractor shall, within five (5) days from receipt of
notice of termination, give notice of the termination to all
other parties hejshe has subcontracted with for services in
furtherance of this Agreement. Upon any termination, each party
shall pay or 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 in
writing and shall be conclusively deemed served when delivered
personally or forty-eight (48) hours after the deposit thereof in
the United States mail, postage prepaid, registered or certified,
and addressed as hereinafter provided.
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B. All notices, ..demands, requests, or approvals 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 notices, demands, requests or approvals from the
City to the Contractor shall be addressed as follows:
Third Street Development Corporation
1427 Santa Moncia Mall
Suite 202
Santa Monica, California 90401
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
documents as they may be required by the City. In the event
authority is delegated to a position (e.g., President,
Vice-President, Treasurer, etc.) rather than to an individual,
the list of positions so authorized shall be furnished.
26. WARRANTY OF SERVICES.
The Contractor warrants and guarantees that all services
performed hereunder for the City by the Contractor shall be
performed in a manner commensurate with the highest professional
standards.
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27. EVALUATIO~"~.
Contractor hereby'agrees to participate fully, with guidance
and assistance from the City, 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 Community 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. RELIGIOUS ACTIVITIES.
A. No program funded under this Agreement may be involved
in any religious activities, nor may funds provided under this
Agreement be expended for religious or anti-religious activities.
B. Vo equipment, materials, or premises 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
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to any candidate for public office, any initiative, referenda,
ballot measure, 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 501(c){3) of the Internal Revenue Code or by
regulations and legislation set forth in Section 2 of this
Agreement. ~Phe 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.
- 22 -
"30.-- INTEGRATED'AGREENI'ENT: _. ,,,,.-.,,,,.,
Each party to this Agreement acknowledges that no
representations, inducements, promises, or agreements, orally or
otherwise, have been made by any party, or any one acting on
behalf of any party, which are not embodied herein. Any amendment
or modification to this Agreement will be effective only if in
writing and signed by both parties.
31. PARTIAL INVALIDITY.
If any provision of this Agreement is held by any competent
court to be invalid, void,- or unenforceable, the remaining
provisions shall nevertheless continue in full force and effect.
32. WAIVER.
A waiver by the City of any breach of any term, covenant, or
condition contained herein shall not be deemed to be a waiver of
any subsequent breach of the same or any other term, covenant, or
condition contained herein whether of the same or a different
character.
33. GOVERNING LAW.
The validity of this 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.
34. SECTION HEADINGS.
The section headings appearing herein shall not be deemed to
govern, limit, modify or in any way effect the scope, meaning or
intent of these conditions.
- 23 -
35. COST OF LITIGATION.
If any legal'act~ion is` necessary to enforce any provision
hereof or for damages by reason of an alleged breach of any
provisions 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.
IN WITNESS WBEREOF, the parties have caused this Agreement
to be executed the day and year first above written.
CI'PY OF SAiQTA MONICA,
a municipal corporation
BY
John Jalili
City Manager
APPROVEll AS TO FORM:
~ ~~___
ROBERT M. IdYERS
City Attorney
CONTRACTOR:
Third Street Development
Corporation, a California
non-profit corporation
BY~~ / /
Ernest A. Kaplan
Chairman of the Bo rd
tsdccon
- 24 -
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City of Santa Monica
- - - -- - - -- - - - - ----GRAIITE E- F{SEA6 r'R06REi-S REPORT -
Subgrantee/Project ~-' - Contact Person
Address Report Period: -
~ ^ CDBG '
_.__~.____._ __..___. from O GRS
To G
1. PROGRAM EXPENDITURES
'-- - ----~- - -
Une Item Grant
Budget Prior
Cumulative
Expenditures .Current
.Period
Expenditures Cumulative
Expenditures
To Dace
IA. Staff Salaries
IB. StafF Fringe Benefits
lC. Consultant Services
2A. SDace/Facll(ties
2B. Egul pn+ent
2C. Travel/Training
2D. Insurance
2E. Ope rating Expenses
TOTAL
$ of total .agency budget expended to dace on lobbying activities; ,- _
$ of program expend Rdres charged [o the Clay ofSan[a Honlca to date~_$
II. CASH REQUEST
A. Total Cash Received to Date
B. Total Cumulative Expenditures to Date
C. Cash Balance
D. Projected Expenditures (next Quarter)
E. AHOUN7 REQUESTED
III. CERTIFI CATI OII -
I certify that this report is [rue, complete and accurate [o the best of my knowledge and
That all dis6ursemen is have been made in mmpliante with the conditions of the Acreement
and for (he purposes Indicated.
Name Title
Signature Date
Reviewed by
Cash Payment Approved
For Ci [y Use Only
By
Da to
EXIIIBIT "D"
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A
Exhibit "E"
CITY OF SANTA MONICA
CONTRACT ACCOUNTING AND ADMINISTRATIVE HANDBOOK
PREFACE
The purpose of this handbook is to establish accounting, internal
control, financial reporting, and contract administration
standards for Subcontractors who contract with the City of Santa
Monica.
The accounting, ..internal control,_and. reporting principles
presented are fundamental-and are not intended to replace`
acceptable existing procedures and financial accountability and
reporting methods. Instead, the fundamental requirements
represent minimum procedures and controls that must be embodied
within each Subcontractor's accounting, internal control, and
financial reporting system. All reference to Subcontractor shall
mean Contractor.
BASIS OF ACCOUNTING AND FINANCIAL REPORTING
(1.H1)' Basis bf Accounting
Subcontractors niay elect to use either cash basis or
accrual basis method of accounting for recording
financial transactions. Quarterly invoices rtiust be
prepared on-the same-basis that is-used for recording-
financial transactions.
(1.911) The City recommends the use of the accrual
basis for recording financial transactions.
(1.012) If a Subcontractor elects to use the cash
basis for recording financial transactions
during the year:
A. Necessary adjustments rtiust be made to
record the accruals at the beginning and
the end of the contract period.
B. A11 cortiputations, supporting records, and
explanatory notes used in converting from
cash basis to the accrual basis rtiust be
retained.
(1.02) Financial Reporting
Each Subcontractor shall present an invoice to the City
each quarter to report the financial activity of the
quarter. In addition, if advanced funding is involved
an invoice shall be presented at the beginning of the
contract period. Invoices shall be prepared in the
manner prescribed by the City.
ACCOUNTING SYSTEM
(2.01) Each Subcontractor shall maintain (unless otherwise
approved) a double entry accounting system (utilizing
debits and credits) with a General Journal, a Cash
Receipts Journal, a General Ledger, and a Cash
Disbursements Journal. The City recommends that a
Payroll Ledger also be maintained. The General Ledger
and Journals should be posted as required, at least
monthly.
(2.011) General Journal - A General Journal shall be
maintained for recording adjusting entries,
reversing entries, closing entries, and other
financial transactions not normally recorded
in the Cash Receipts Journal or Cash
Disbursements Journal. Entries in the General
Journal must be adequately documented, and
entered in chronological order with sufficient
explanatory notations.
Example: DR. CR.
Rent Expense 10H
Rent Payable 10H
To record accrued rent
to March 31, 1980
(2.012) Cash Receipts Journal - A Cash Receipts
Journal shall be maintained for recording all
cash receipts (e.g., City warrants,
contributions, interest income, etc.). The
Cash Receipts Journal shall contain (minimum
requirements) the following colurtin headings:
-date
-receipt number
-cash debit columns
-income credit columns for the following
accounts:
-City payments (one colurtm per
program)
-Contributions
-Other Income (Grants, sales of
_ supplies/services, rental income,
miscellaneous revenue, fees, etc.)
-description -_
(Entries in the
description column must specify
the source of cash receipts.)
(See •4.811 for additional clarification)
(2.813) Cash Disbursements Journal - A Cash
Disbursements Journal shall be maintained for
recording.. all cash disbursements (e.g., rent,
utilities, maintenance, etc.).
The Cash Disbursements Journal shall contain
(minimum requirements) the following columm
headings:
-date
... - - _
-check number. •.
-cash (credit) column- --
expense account name
_~descripton ~ - _,--
Note (1) Separate expense columns are
recommended for salary expense and
other recurring expense
classifications for each program.
Note (2) Entries in the description column
must specify the nature of the
expense and the corresponding expense
classification if not included in the
column heading.
Note (3) Checks should not be written to
employees (other than payroll,
mileage, travel, and petty cash
custodian checks).
A Check Register may be substituted Eor the
Cash Disbursements Journal, but this is not
recommended. If used, the Check Register must
contain the sartie expense classifications and
descriptions information required when a Cash
Disbursertients Journal is used.
Dis
wit
rsements wit
be disallowe
ut supporting d
on audit.
:u¢ientation
(2.014) General Ledger - A General Ledger shall be
maintained with accounts for all assets,
liabilities, fund balances, expenditures, and
revenues. Separate accounts must be
maintained for each City program's expenses
and revenues.
-A chart of Accounts shall be maintained:
The City recommends that agents use the
expense account titles on the monthly
invoice submitted to the City.
-If the Subcontractor uses account titles
which differ from the account titles on
the morSthly invoice, each account title
must clearly identify the nature of the
transaction(s) posted to the account.
-Subcontractors must consistently post
transactions that are of a sirtiilar nature
to the same account. For example, all
expenses for travel shall be posted to
the account titled "travel" or "travel
expense'° and not intermixed with other
expense accounts.
(2.015) Payroll Ledger
Payroll Ledger
should contain
each employee:
-name
(2.016)
-position
- The City recommends that
be maintained. The ledger
the following information
-Social Security number
-payment record including:
-accrual period
-gross pay.
-itemized payroll deductions
-check number
a
about
If a Payroll Ledger is not used, the above
information must be, recorded in the cash
disbursements journal.
Petty Cash Disbursements
A Petty Cash Fund may be maintained for
payment of small (less than $25.00),
incidental expenses incurred by the
_ n
Subcontractor (e.g., postage due, small
purchases bf office supply item§, etc.).
Petty Cash disbursements nmst be supported by
store receipts, ..petty cash vouchers; .or other
authenticated-documentation -that i-nidicate the
item purchased and the employee making .the
purchase.
Unsupported petty cash disbursements will be
disallowed on audit.
The petty cash fund shall be maintained on the
iniprest system, i.e., a check should be drawn
to the petty cash custodian to set up the fund
and to make periodic reimbursements.
Receipts, vouchers, etc., supporting each fund
replenishment must be bound together and filed
chronologically. A $25 Petty Cash Fund is
r e c onmie nd ed .
ACCOUNTING .RECORDS AND FILING
(3.U1) Retention of Accountin Records and Filing of Supportih
Documentation
(3.811) Record Retention
A11 accounting recor.ds_ (journals, ledgers,
etc.) and supporting documentation (invoices,
receipts ,_ checks, vpuchers,;_etc.),must he
retained for a minimum period of five (5)
years.
Adequate care shall be exercised to safeguard
the accounting records and supporting
documentation. Any destruction or theft of
the Subcontractor's accounting records or
supporting documentation shall be immediately
reported to the City. Unsuoported expenses
will be disallowed upon audit, resulting in
overpayment assessments.
(3.12) Filing and Storage
All relevant supporting documentation for
reported program expenditures and revenues
shall be filed in a systematic and consistent
manner.
It is recommended that supporting documents be
filed as follows:
checks - numerically
invoices (sales) - date/vendor name
- S _
vouchers
receipts
timecards
(3.U13) Refer
- numerically
- numerically
- date/alphabetically
Accounting transactions posted to the
Subcontractor's books shall be appropriately
cross-referenced to supporting documentation.
For example, expenditure transactions on the
Subcontractor's books must be cross-referenced
to the supporting documentation as follows:
invoices - vendor name and date
checks - number
vouchers - number
Revenue transactions must be cross-referenced
to receipt numbers.
(3.U14) Supporting Documentation
Each Subcontractor shall maintain supporting
documentation for all disbursements.
Unsupported disbursements will be disallowed
on audit.
Examples of suppbrting documentation required
for various expenditure categories are as
follows:
Personnel Services - Payroll records,
time and attendance records signed by the
employee and approved by the
supervisor,time distribution records by
program (accounting for total work time
on a daily basis) for all employees.
Employee Payroll Documentation - payroll
records showing actual expenditures for
OASDI, FICA, etc. (FICA and FUTA
expenses are not allowable expenses +f or
agencies exempted by the IRS).
Consultant Services - time and attendance
records, travel vouchers detailing
purpose, time and location of travel,
purchase orders ad invoices for supplies.
Travel/Training - travel policies of the
agency (written); travel
- ~ -
i L
expense vouchers showing
location, date and time of
travel, purpose of trip, and
rates claimed; vehicle mileage
logs showing dates, destination
and headquarters, purpose of
trip and mileage; parking
receipts; conference
registration forms; receipt for
meals purchased while on
approved travel or attending
approved conference. In no case
will meals in excess of the
following limits be reimbursed:
breakfast $6.99; lunch $19.99;
dinner $29.99. In no event will
reimbursement be approved for
alcoholic beverages. Hotel
accommodation expenses will only
be reimbursed when distance
prohibits the agency
representative from making a day
trip. If such a determination
is unclear, it should be
approved by the City's monitor
.prior. to incurring such costs.
Reimbursement for lodging will
be the amount of accommodation
for single occupancy at a
reasonably-priced hotel or motel
or an equivalent alternative if
such accommodations are not
available. Double ocupancy is
encouraged when possible.
Operating Expenses - purchase documents
such as purchase orders, invoices,
requisitions, stock received reports,
bill of lading, etc., lease and/or lease
agreements, contracts.
INTERNAL CONTROLS
(4.91) Internal Controls
Internal controls safeguard the Subcontractor's assests
from misappropriations or misstatement. Each
Subcontractor shall prepare necessary written procedures
establishing internal controls for its personnel. The
Subcontractor shall instruct all of its personnel in
said procedures and continuously monitor operations to
ensure compliance therewith. The following internal
controls are mandatory:
i
-Program revenue shall be maintained in a
separate account unless otherwise approved by
City. If other funds are maintained in the
account, revenue for each program must be
clearly identifiable.
-A11 receipts (including checks) shall be
receipted by using pre-numbered receipts.
Receipt forms shall be secured to preclude
unauthorized use.
-Cash receipts shall be deposited daily and
intact.
(4.811) Cash,'Receipts
(4.012)
-Duplicate deposit slips shall be retained and
filed chronologically, and shall contain
sufficient reference information for
comparison to the individual pre-numbered
receipts and the Cash Receipts Journal.
-An employee who does
record cash receipts
"write-it-once" Cash
used).
not handle cash shall
(unless a
Receipts Journal is
-The monthly bank statement shall be received
and reconciled monthly by someone independent
of the cashiering, depositing, and
bookkeeping functions.
-The bank reconciliations shall be reviewed by
supervisory personnel for appropriateness and
accuracy.
-All checks shall be restrictively endorsed
irtiniediately upon receipt.
isbursements
-All disbursert~ents, other than petty cash
disbursements, shall be rtiade by check. Blank
check stock shall be secured and accounted
for to preclude unauthorized use.
-A second signature shall be required on all
checks. The second party shall be
independent from the cash receipts and
disbursements process.
-Checks shall not be payable to "cash" or
signed in advance.
-Voided checks must be mutilated and filed
with cancelled checks.
- R _
-Unclamimed.or undelivered checks shall be
cancelled periodically.
-Supporting..documents shall be examined by the
persons-signing or controlling .the signing of
checks at the time checks are signed.
-Supporting documents shall be marked "paid".
-Supporting documents shall be referenced to
check numbers.
-Payroll checks shall be distributed by
persons not .involved in timekeeping,
preparing of payroll, or reconciling of bank
accounts.
-Employee hiring and terminating, or pay rate
changing, shall be approved by persons
independent of payroll functions.
-A11 disbursements, excluding petty cash
purchases, shall be approved by persons.
independent of check preparing and
bookkeeping.
-Fixed asset purchases shall be approved by
the agency's Board of Directors or their
authorized representative. _ _.
-A current:listing_of.fixed assets showing
funding source shall be maintained, and a
fixed asset inventory shall be conducted at
least annually.
(4.813) Bonding - All officers, employees, and agents
who handle cash or have access to the
Subcontractor's funds shall be bonded.
OVERPAYMENTS
(S.E1) Method for Determining Overpayment Assessments
If upon audit, or at any other time during the contract
year, it is determined that expenditures or revenues
reported to the City and used to compute the
Subcontractor's cash flow needs were incorrectly
reported, the City shall adjust the subsequent month's
invoice payment, or take other appropriate action.
The total overpayment(s), shall be determined as
follows:
Total Allowable Program Expenditures $ XXXX
n
1 C
Less: Unallowable Expenditures per
Audit
Allowable Expenditures to be
Reimbursed
Less: Advanced Payments of City Funds
Overpayment Due City
LIMITATIONS ON EXPENDITURES
(6.91)
XXXX
$XXXX
XX:{X
$XXXX
Payments to Affiliated Organizations/Persons
Subcontractors shall not make payments to affiliated
organizations/persons for program expenses (services,
rent, equip¢ient food, etc.) that exceed the reasonable
cost for such expenses. The City shall be solely
rsponsible fo the determination of reasonable program
costs. A reasonable cost shall be that price which
would be paid by one party to another when the parties
are dealing at arms length.
{6.911) Affiliated Organizations/Persons
Organizations/persons related to the
Subcontractor by blood, marriage, or
throughlegal organization (incorporation,
partnership, association, etc.) will be
considered affiliated for purposes of this
contract. The City shall be solely
responsible for the determination of
affiliation.
(6.9112)- Unallowable Expenses
Expenses by the Subcontractor to affiliated
organizations/persons which exceed reasonable
costs for such expenses will be disallowed on
audit. If these expenses were reirtibursed by
the City, overpayment assessments against the
Subcontractor may result.
CONTRACT ADMINISTRATION
The City and its funding sources place great stress on the
achievement of a high level of performance in the management of
program funds.
The Subcontractor's aianagenient is responsible for ensuring that
in addition to the preceding accounting, internal control, and
c
reporting requirements,.:-the following contract administration
requirements are adopted and enforced.
(7.01) Audits
The Subcontractpr will make available for inspection and
audit to City representatives, upon request, during
regular working hours, during the duration of the
contract and for a period of five years thereafter, all
of its books and records relating to the operation by it
of each project or~business activity which is funded in
whole or in part with governmental monies, whether or
not such monies are received through the City. All such
books and records shall be maintained at a location
within Los Angeles County.
(7.02) Limitations on Expenditures of Pro ram Funds
(7.021) Expenditures Outside of Contract Period
.Expenses charged against program funds may not
be incurred prior to July 1, 1985, or
subsequent to the contract termination date.
(7.022) Appropriate and Necessary Expenditures
Ohly those expehditures as needed to carry out
the purposes and activities of_the approved
program are allowable.
(7.023) Allocation of Cost Pools
For Subcontractors who operate many programs,
or have more than one funding source, the
Subcontractors shall allocate expenditures to
the various programs or funding sources.
The costs should be allocated on the basis
most appropriate and feasible in the
circumstances.
Examples: Number of hours spent
Number of employees
Number or residents
Square footage
Relative revenue volume
Relative expense volume
The Subcontractor shall maintain proper
documentation related to the allocation of
expenses (e.g., timecards, time summaries,
square footage measurements, etc.).
(7.024) Budget Limitation
_ „
Expenses may not exceed the maximum limits
shown in the contract budget.
(7.925) Unspent Funds
The City will determine the disposition of
unspent program funds upon termination of the
contract.
(8.91) Limitations of Positions and Salaries
(8.911) The Subcontractor shall employ persons for
those positions listed in the contract or the
attachments thereto.
(9.91)
(8.912) The Subcontractor shall pay no salaries higher
than those authorized in the contract or the
attachments thereto.
(8.913) For purposes of this contract, unless approved
by the City in writing in advance, no ertiployee
shall hold more than one position in the same
program.
(8.914) For purposes of this contract, when an
employee serves in the same or dual capacities
under more than one contract, he/she may not
charge afore than 1990 of his/her time to the
contracts taken as a whole. For example, an
employee may not charge their time to one
contract 59°s, another 39a, and another 390.
(8.915) For purposes of this contract, employees who
work 49 hours per week. shall be considered
full-time employees. Employees saho work less
than 49 hours per week shall be considered
part-time employees, and they shall be paid on
a pro-rated basis, unless otherwise approved
in writing by the City.
(8.916) The agency will rtiake no retroactive salary
adjustment for any employee without written
approval from the City.
Travel Expense Reimbursement
(9.911) Allowability
Travel expenses to be allowed must be provided
for in the contract.
e
{10.91)
(11.01)
(9.912) Limitations on Expenses
Travel reirtibursenient for transportation,
meals, and lodging shall not exceed travel
a=2lowances-eahich are allowed 'ny the City.
Insurance _ _ -
(19.911) Subcontractors are responsible for securing
required insurance-coverage and maintaining it
- --- -in force;-du-ring the entire contract period.
(19.912) Subcontractors must immediately notify the
City when required insurance is revoked,
withdrawn, or otherwise made ineffective.
(19.913) Insurance shall include an endorsement naming
the City of.Santa Konica as additionally
insured.
Property Management
(11.911) The Subcontractor shall assume responsibility
and-accountability for the maintenance of all
non-expendable property purchased, leased, or
rented with program funds.
(11.012} Non-expendable property is defined as any
tahgible personal property co'sting`$1947`"or`'-
more per unit and having a useful life of more
than one year ,'real property and any interest
in such real property, such as a mortgage,
trust deed, or other encumbrance of real
property, and the funds received from the sale
or any other disposition of any non-expendable
property or interest thereon.
(11.013) Acquisition of non-expendable property items
that were not listed in the approved contract
requires an executed modification to this
contract to provide the necessary funds.
(11.914) Unless approved by the City in writing,
non-expendable property shall not be ordered
or purchased by the Subcontractor during the
last three months of the contract period.
(11.015) The Subcontractor shall maintain an up-to-date
inventory list of all non-expendable property
items for which he/she is responsible. The
source of funding for each asset shall be
noted.
(11.016) The Subcontractor shall report promptly, in
writing, to the City, all. cases of burglary,
- 13 -
t
i
loss, damage, or destruction of non-expendable
property. The report shall contain, at a
minimum, item identification, recorded value,
facts relating to loss, and copy of the law
enforcement agency report. _
(11.HI7) A property inventory must be made once a year.
(11.H18) At no time will non-expendable property be
disposed of, transferred to another agency, or
used for other than program purposes without
express written permission of the City.
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