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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 - 1 - 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 tsdcsr - 2 - 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. - 1 - `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. - 2 - '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 - 3 - 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 - 4 - 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 - 5 - 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 - o - - 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 - 7 - 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. - 8 - ~~ =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. - 9 - 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 - 10 - 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 - 11 - 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 - 12 - 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 - 13 - 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. - 14 - 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. - 15 - 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 - 16 - 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. - 17 - 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 - 18 - 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. - 19 - 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. - 20 - 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 - 21 - 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 - EXHIBIT "A" d U O J sa ¢z ~ 3 N W L1_ ~-- o z i• ~ r cv V N r-I Y O f+ Y U] 'y N f••' U W 7 O a ~. o_ u C- 0 N N ~ ~ 0 ~' o ~ ~' U ~ Y L ~ d ~ d ~ ~ O y~ L : F~ d > Y o ° u o t+ m 3 'd C f+ a L .. 3 w N $ rs- ~ .. . . ~ . N N .. . : .,.. . , ro. ~ O ~ N ~ - ro N rl ro A N ~N V Nr ~ O'- ? Nb O ~ A.Nro\ Y > Q+ Fi ~ N N N ~~ ~ U N b -(lid fi •- L CC N ¢. S-~ •r1 Y p, N N Y N by Q7 O C N O bn P. O N U O ~ b0 U S+ x •. ~ U ~ A -O N ~ ~ ~ U ro ~ 4- .N Y N r-I F+ Y t n x I-i O ~ . Y ~ W~ C C Y N O U N •n N J E ~ • Z N Q J. J Q 1 F- z H N r-i p tf1 M N H a-I l~ N M M r-1 ~ ~ N i !- Q 0 N r ~ ~ ~ •~ O I ~~ w ~ ~ ~' ~ •~ a •~ ~ ~ o o m Y +-~ U UJ O O 00 .N N .~ a~w ~ ~•~ ~N ° ~ ~ ~ •U °° U . ti p .ti ~ ° H ~ U •~cn <: ~ ~ P a Nam te ~ ~ '.p > o~ c ms . c d a n • x • x . ~ A' +' ~00000 • q,.,~ o ~ . s, s Na ~ , U] a9 f.' N •~ N o:.N ~,ri •ri ~-:cy ~ Y Y w O v U •Ij G4 Y Y O ~--I w ¢`ri •r9-H N F U r-1 O Y N Y U N [j F ~ ro O ctl A ~ A ~ U ~ c"iC ~ O ~ ~ ~ o o N .~ ~ • ~• .-+ •~ m o ca a, ~. on ~. C 7 i. O •ti • i c ~.ti U O P. N N CJ O ~ ~C O . r by O U Y +-~ ctl Y F+ ~ N 1 ~ ~ w o Nw ~ ~~ ~ ~ ~a~'"so ~ a c~ o~ a a i~ , , . .. ~ a m o uww a m •N ~. o v o U N •~ ~ ~ U +~ ~ N •~ ~ , o~ o a ~+.a V O A Y ' O " E.; ry ro W n o • °' o F H O F. ° O~ O•ri v1 rl m ` 3 ~ ~ .d -iw ~ ~ A o,flgro ro YO•~~y o ti •~ ca ro ti o o .•i - .~ m o ~.ti Y o s+ ~ ~ roro o 0 p RI F+ N N } u7 fC ~ 'T N .. I23 Y ro by ' ~ i c0 ? ~ •rl O ~ O ~ ~ G O ~ A C n ? u7 N _ ~ r {L •N (C P. N Y O F+ O •rl O O •r{ N •N LT. ra O F+ iC ~ N ~ bA N b0 O ~ ro ~ R+ ~ N Y t0 •ri (C N t0 ~ Y Cd •N RS S-i ~ ~. ~ ~ Y •N N 7 P. C +-~ N N O •H . v P+ F. cC x Yr•{ N O U U Y ~.~ N l 3 •~ N [ " F+ • C -i N U Y O G' U Y •N w ^~ ^ ca F-i w RS U RS H N ~ ~ p., R1 N O r Y . ca ~ ~C •rl N • N ~ r-I N w q N O 'd E bA id N f-1. O (." r--I "d S -~ 9 o eoa~ Y w o moa O Y u ~ O s.s. F+ Y w N . •ri ~y O 0 U 0 ~ ~.aA O Y O •~ > oti ~ CL N •ti ~ w eoa N m~ ~ a N N Y v i ~ O ~ ~ , O ~ V ~ ~ ~ ~ ~ ~~ £ ~ p 0 ~ ' (a N -- ~ Y f~ ~ O -i P. ~ r •r 1 N F+ ~ ~ ax w N o •~ .c ~. v Y s. a ~ Y } ~ N o 0 0 •.~ w ~ o 0 0 ~ Y o •,~ P ~ •~ m 1 ? .~ o Y Y~ N w s+3 . A3 a . •~ Y q ~ ca Y ro U •N ~ •N •~ Y . YogvYO ~ o o ~ ~ ~~N o~•~ ~ O.cn OFi.~U~ U :~~ N p ~ ~ . - O ~ C •3 Y E3 ~ ~ F+ U + .T ~ ~ U Y ~ •N ++ O CJ p ~ ' a ° • , O ~ ~ ~•N ~•~ o o ~ ~ ti «f ro ~ ¢ ¢ ~ ¢ ¢.Y N N.' N ~ ~ . ~ ~ ra a. ,c P'. a `~ a o 0 0 0 0 0 Q U Z Q O J a Y 6 C z 3 ~ w w Fw-• o Z T C F- (.~ -- - ~ N ~ V N u j ~ ~ L a ~ ,~ w O ry J ri Q c S ~ eG ~ Z N Z i~ N N £. ~ J b f" Q = N 1- Z ~ G ~ -. . H ~.] K a ~. m 0 u c O N Ql Q .~ O L o ~ L ma o m ~ 0 ~? c v ~ _ ~ 3 '~ c a L W NZ t C /- (.~ H W F- U W "~ O 0 U v O a R. EXHIBIT "A" N ~ U1 N Fem. C ~ N • ~ '_'+ , O •ri O ~ O ~ N ? ~ ~' N N to N +~ cC O N +-~ fi+ ti F. f+ O bD p~ '++ U ti ti N ~ N ~ , , 3 N £ 1. > O r i H i -~ N N N 0 ro O U u i P. U U ~ ~ ~ W N .--I .-1 N O O ~ N N ~ C .-r ~ ~ N ~ . O ~ N H N ~ O : ~ • c tl ~ ~ ~ ~ v •N to O F. ,.C p '''~ U m v~ G. p S . <tl ~ N m ~ K 3 ~ ~ ~ . i .~ > G eo ~ ~ ~ v ~ N ~ ~ +~ UJ u2 +~ 0 0 ~ ~ N ~ ~ +~ ~~ O ti U U N ~ O ' ~ O ItS N i-~ tli ~ N "zy ~ ~ R. c'S ' C 3 ~ ~ N U i 1 ~ v) 7. i-~ p ~n N C ~ C O ? c~6 N ~ ~ ~ ~ O O `b N •r i U N . v v, N S~. b U . ~-+ ro o N ~. ~. > ~ ~ ~ o ~- ca ~ ~ G ~ > > + `° ~ ~ n ~ ,~.° N ti o o >u mro `~ ~ m g 3 z . + + N ma i ~~ o o a; •.~ o ~ ~m +-, on ~ f~ c ' ~~ o o ~ ~ o T wt . ~ ~ ~ ro•~ E 4 o a o o +~ •+~ ro~ n a o v ,~, c +~ WW ~ o o m ~' • ~ ~ ~ t~. ~ ~ o , ~' ~ ~ ~ ~ •ti ,~ p A U i a G . P s + ' 7 +~ m 7 a uD•N o N ~ .~ . ~ F, U O ~ .N c N W ~ O em O •~-I bOD ~ ~ ~ p ~ ~ ~ O t -~ . F ~ + z ~~~TTT ±±± ~ ~ U m W LL Q O O O N O cif .x h ~ ~ ~ N ~ O O O O O W O O EXHIBIT "A" U Z Q O J E ~ C C z 3 Q N W W {. O Z > C H ~ U M N ri N O N Fr 1-~ :n b F. .N F F v 0 d 0 u C O Ol v ~ o q L °1 a a o ~ ~ 0 °' ++ ~ o 0 0 v ~ N 3 '~ c c-~ a i 3 w F- N L K ~"' ~ °~ V u j ~ C C] ~ h O ~r, ~ O ti ~ ~ j N U - ~ ,~ _. _.._ ~ ,. _. J E ~ • Z N Z Q J. Q ~ F- Z es d ~ F - ctl Q ~ T . ~+ - -C .. ms tN ~ E "' E U ~ O ~ ~ O ~ - ,.[ N ~ V1 U ~ W N N td ~ £ ~ ~ ~ ~ ~'I v .. - u '' w ~o m r . O O 1+ _ - _ _ C. - N . ~ ~ _._ ~ 7 !J ~ ¢. ~b QS y %/7 O - 'O b O F- F-, r-i ctl ... N S-i ~`' o o p ~ o ~~ ~ .~ ~ H ~ ma Gv . ~ O ~ 'r-I w ~+ U ~ ' ow a , ~-; ~w ~ ~ N ~ ~o u ~ ar o a ~ ~ ~ ~ ~ °'~ Coro o ~. ~ +-~ x s . °~ F o ~ o + + n • o ro ~ `~ v G 3 cC . ~ ~ ~ O O RS ~ N P O 0.1 O O T ++ O f3. ~+ f+ ~ ~ 4• O ~ .z'7 'd ~> H ~ O ~r i ~ ~ ~ H o ~+ ~ o ~° ~ a ~' ~ U ¢ - ~ m ~ ro a i i .a ~ td CL L 1. G H N Q ~ H H H O~ W O ~ O A' 'k EXHIBIT "B" U H zF ~ ~ ~~ z `~ cn W H O E C7 H U N N ro 3 0 F .R m N ~ r-i Q '~ ~ ~ v ''tl r-I N 3 N +~ N N O R, w x w O M N h O .-i H h 25 O .,~ H v L]. W +~ u 0 U .~ 3 +~ U ro N -4~ O U N .~ E r-1 ri Q 1. kl Sa ~ rt3 'Jy M U ~ ~ M x' C.' ~ N M m 3 _ roo ~; M ,5..' Q N F .. ~. a z ~ O ~ a z W a w F O U x ~ a E W z a o w U E LL O }a +~ N R~ O •r1 rI ;J v ~ ~ U ~ ~ Q x +~ ~ w °' a Ha ,~ cn E H H FQ E Na W H a,' E O U E W C7 FC O H c o 0 0 r-7 W o 0 0 0 FC C7 E q d• N O l0 O .7 .-i d' O tf7 E P~ Ol O M N rl d' Ol Ln M 01 M rl N ~} (/} ~ 0 0 0 0 ~'O o 0 0 0 N 4 ~ ~ d' N O lD ~ W ~ cr o in W ~ 6l O M N U a ,-~ ~ rn u1 + ~ M H f~ H N O v~ ~ c~ z H Q z w ~ C o 0 ~ o 0 Q N O O FG m o 0 Uv o 0 N N d o 0 i N N yr yr N v ~ ~ ~ v ~ b k W '3 W ~r H ~ 47 ri z m rt o H N N a w ~ ,~ •~ •.a ro " m a ~ R, 0, ~ ~ U i-] O r-1 N M [-I '~ a~ 3 N .~ N a N Q v .~, -F~ U v w w W O z O .~ ~ ro t6 U C •'I •'I W -~'ro o~ an a z 0 U: \ D rn H y U a _, -a --- - __ ~ a L ~ ~ a W y v Q L a I Q 2' Z ~ J ~~ V O- i- R 1-` 1- y' N - wN 2 W w' 2J y ~~ j < Q ~'~ ~ uoA O ~t. ~ U u i d ¢ vi •+ ~ L ~ E a a o ~~ it ~ L .. ¢` o r '~ z t~ >w ro ~- - - ~ 7 U ~ ~ w ~ ~ ~ ~Q A-1 _ ~ ~ 0 V _ h Cl m N O ~ I- ~ ua~ L U L %~ w ~ oo ~ ~ - • N C9 C 7 1J V F- C L Q O ~ u -.I ~ C S U] I(3 ~ a ~ ~; ~- - ~n c ~ ~, ~.- o C .o ~ r a U fL T u - w w ~ N ~ u H O ~rl w z „ ~ ~ +~ m r ~, +1 ,^~» w ~~ M g u; ~ v w ~ o sa v - a; w ~ N +~ S-i C N N C.. U A. S-i O O~ Cv V -I_-l- -_ ~ I U 11 l ~ i S L _ ~ tf"~ L _ I C ` ~` OZ i ~ F- N N N J U U - ~ i~ I I I I ~ . i i I I I ~ J __ i N v m C N L u v U C G N d V N v c 7 O u C W E L O d N L v v Z N U c m u N N h Q N u c L U L r U C c C .~ F- Z O H G U .~-~ H C W U N v i Y U E L m O L d +~ A i-~ C U1 Q1 3 0 c i E r. 0 Y N v Ql r ~ Y C O v i~ ~ N N Ql 1 L ~ ~ L Q U v U 4J tp Y C ~ ~ C L ~o C7 CJ Q) Y t G1 N n v- o O U N C O ~ .~ ~ i~ L •.- N ~ c N o .- U i-~ v L t O +~ d Q1 t L +~ ~n 3 r v 1~ U C J-~ i0 m .~ L ~ Y d E U ++ c L •r Ul U i .-. Ip N v ~ ~ Y rt] rp F- •. ~ G L Ql C E a a v v .j v C >, C O N N U L O ;.e ~3 Oi N w c N~ v C. m c 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" ~ _. Telephone Oate I~a t i i . . . i l i P ti n ~I I i i I I ~ ' ' ' ' I r I I I I I I I ~ ~ ~ ~ j i I II i ~ 3 ~' ~ ~ i i l i ~ ~ ,, I~~i ~ll ~ v c n T n H a C 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. - 14 -