LAC CDBG Contract 70741 Amendment No. 1 (2012) COUNTY OF LOS ANGELES
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
REIMBURSABLE CONTRACT WITH PARTICIPATING CITY
AMENDMENT NUMBER 1
CITY: City of Rancho Palos Verdes
CONTRACT NUMBER: 70741
THIS AMENDMENT NUMBER 1 TO CONTRACT 70741 is made this 1st day
of July 2013, by and between the County of Los Angeles, hereinafter called the
"County," acting by and through the Community Development Commission of the
County of Los Angeles (Commission) and City of Rancho Palos Verdes, hereinafter
called the "Operating Agency."
WITNESSETH THAT:
WHEREAS, the County and the Participating City previously entered into a
Community Development Block Grant Program Reimbursable Contract with Operating
Agency, Contract Number 70741 dated May 23, 2012, and any subsequent amendments;
and
WHEREAS, the County has entered into a Contract with the United States of
America, through its Department of Housing and Urban Development (HUD), to execute
the County's CDBG Program; and
WHEREAS, Operating Agency desires to participate in said CDBG program and
is qualified by reason of experience, preparation, organization, staffing and facilities to
provide the services and implement the project described herein.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth
and the mutual benefits to be derived there from,the parties agree as follows:
1. Section 4, TIME OF PERFORMANCE is amended as follows: Operating
Agency shall commence the services described herein on the date first above
written and shall complete same by no later than June 30, 2014. Construction
projects shall be limited to a three (3) year duration and must be successfully
completed within this period, unless the Operating Agency has received prior
written approval from the Commission, through its Executive Director, or his
designee.
2. Section 5, COMPENSATION AND METHOD OF PAYMENT is amended to
show a revised compensation amount of Two Hundred Seventy-Five Thousand
Two Hundred Fifty-Two Dollars and Zero Cents ($275,252.00). This is an
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increase of One Hundred Forty-Seven Thousand Eight Hundred Sixty-Five
Dollars and Zero Cents ($147,865.00) in the compensation amount.
3. Section 32, NOTICES, is amended to reflect a change of address by the
Commission. The new address is now listed as follows:
Notices, reports and statements to the County shall be personally delivered or sent
via First Class U.S. mail to the Executive Director or his designee at:
Community Development Commission of the County of Los Angeles
Community Block Grant Division
700 W. Main Street
Alhambra, California 91801
This contract amends the original contract to reflect the additions and/or change(s) noted
above, and this section(s) should be substituted in its entirety or added to the previously
executed contract. All other terms and conditions of said contract shall remain the same.
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IN WITNESS WHEREOF, the Board of Supervisors of the County of Los Angeles has caused
this Amendment to be subscribed by the Executive Director of the Community Development
Commission, and the Participating City has subscribed the same through its duly authorized
officers on the day,month and year first above written.
COUNTY OF LOS ANGELES City of Rancho Palos Verdes
Digitally signed by Carolyn Lehr
DN:cn=Carolyn Lehr,o=City of Rancho
r. Carolyn Lehr emikeg@rpv.com,c=US
B V; ` B y; Date:2013.07.11 11:55:02-07'00'
SEAN ROGAN, Title:
Executive Director
Community Development Commission
of the County of Los Angeles
APPROVED AS TO FORM: APPROVED AS TO PROGRAM:
JOHN F. KRATTLI SEAN ROGAN,
County Counsel Executive Director
Community Development Commission
of the County of Los Angeles
By: a By: SAA1
Deputy Director, CDBG Division
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COUNTY OF LOS ANGELES
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
REIMBURSABLE CONTRACT
WITH PARTICIPATING CITY
CONTRACT NUMBER: 70741
THIS REIMBURSABLE CONTRACT (Contract) is made and entered into this 1st day
of July, 2012, by and between the County of Los Angeles, hereinafter called the "County", acting
by and through the Community Development Commission of the County of Los Angeles
(Commission), and the City of Rancho Palos Verdes, hereinafter called the "Operating Agency".
WITNESSETH THAT:
WHEREAS, the County has entered into a contract with the United States of America,
through its Department of Housing and Urban Development (HUD), to execute the County's
Community Development Block Grant (CDBG) Program (Program) under the Housing and
Community Development Act of 1974, as amended, hereinafter called the "Act";
WHEREAS, California Government Code Section 53703 authorizes County and
Operating Agency to enter into this Contract in furtherance of the Program; and
WHEREAS, Operating Agency desires to participate in said Program.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom,the parties agree as follows:
1. CONTRACT ADMINISTRATION. The Commission through its Executive Director
(Commission), or his designee, shall have full authority to act for the County in the
administration of this Contract consistent with the provisions contained herein.
2. SCOPE OF SERVICES. The Operating Agency is to perform services consistent
with the goals and objectives set forth in the Community Development Commission
Housing and Community Development Consolidated Plan (HCDCP), adopted by the
County Board of Supervisors on May 28, 2008, or any amendment or successor
thereto,which is incorporated herein by this reference.
3. AGREEMENT TO IMPLEMENT. Operating Agency is eligible for reimbursement
for a project implemented under this Contract only after an Agreement to Implement
(ATI), accompanied by detailed Project Descriptions and Budgets for each project
funded, are developed to the satisfaction of the Executive Director, or his designee,
and is executed by both the Executive Director, or his designee, and the Operating
Agency. This Contract shall consist of this document, the ATI, and attachments:
Exhibit A(s), Project Descriptions and Activity Budgets and Exhibit B, Insurance
Requirements.
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4. TIME OF PERFORMANCE. Operating Agency shall commence services no sooner
than the date first written above, and shall complete same by no later than June 30,
2013. Specified project start and completion dates shall be a part of the ATI
procedure described above for initiating the project(s).
5. COMPENSATION AND METHOD OF PAYMENT. For satisfactory performance
under this Contract, County shall reimburse Operating Agency an amount not to
exceed One Hundred Twenty-Seven Thousand Three Hundred Eighty-Seven Dollars
and Zero Cents ($127,387.00), which shall constitute full and complete compensation
hereunder for the implementation of this Contract. Said compensation will only be
paid out of funds received by the County from the Federal government under the Act,
or from program income, as described in 24 CFR Section 570.504 accumulated under
said program, for allowable costs actually paid for the expressed purposes specified.
The parties understand and agree that such compensation, if any, shall be conditioned
upon receipt of said funds by the County from the federal government or
accumulation of program income from said program, and shall not be a charge against
any other funds of the County. Further, such funds, if any, shall be paid only after
development and execution of the ATI(s) necessary to implement the project(s)
covered by this Contract and submission and approval of the electronic payment
request form. This payment request form must be submitted on a minimum of a bi-
monthly basis as specified and provided by the County. Operating Agency shall bill
for expenditures on a reimbursable basis for each project for which an ATI has been
executed. After timely receipt and approval of each payment request form, the
County will draw a check in favor of the Operating Agency in the approved amount.
After the expiration of the financial closeout period, those funds not paid under this
Contract, if any,will be returned to the Operating Agency's un-programmed funds.
Operating Agency shall have no claim against the County for payment of any money
or reimbursement, of any kind whatsoever, for any service provided by Operating
Agency after the expiration or other termination of this Contract. Should Operating
Agency receive any such payment, it shall immediately notify the County and shall
immediately repay all such funds to the County. Payment by the County for services
rendered after expiration and/or termination of this Contract shall not constitute a
waiver of the County's right to recover such payment from Operating Agency. This
provision shall survive the expiration or other termination of this Contract.
6. ACCOUNTING. The Operating Agency shall establish and maintain on a current
basis an adequate accounting system in accordance with generally accepted
accounting principles and standards, and the County Auditor-Controller Contract
Accounting and Administration Handbook. Regardless of the Operating Agency's
method of accounting, expenses must be reported in accordance with Sections 5 and
48 of this Contract.
7. EXPENDITURE STANDARDS. The Operating Agency shall not have more than
150 percent of its allocation for the current year unexpended after March 31 of each
program year. An Operating Agency's failure to meet this standard constitutes
noncompliance with the Performance Policy and may result in reductions to the
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Operating Agency's current un-programmed funds and/or subsequent annual
allocations to ensure that the expenditure standard is met.
Changes in the grant allocation will be made following completion of the appeals
process as outlined in the CDBG Participating Cities Drawdown Performance Policy
and Appeals Process. The County reserves the right to make the final determination,
in its sole discretion, as to the amount of reduction of the Operating Agency's grant
allocation, if any.
8. COMPLIANCE WITH LAWS. All parties agree to be bound by all applicable
Federal, State, and local laws, ordinances, regulations and directives as they pertain to
the performance of this Contract. This Contract is subject to and incorporates the
terms of the Act; 24 CFR Part 570; U.S. Office of Management and Budget (OMB)
Circular A-87, and Executive Order 12372; the County Auditor-Controller Contract
Accounting and Administration Handbook; and all amendments or successor laws,
regulations or guidelines thereto (hereinafter called the "Laws, Regulations and
Guidelines"). The Operating Agency has, and shall maintain, copies of the Laws,
Regulations and Guidelines. Furthermore, the Operating Agency acknowledges that
it has read and understands the Laws, Regulations, and Guidelines.
The Operating Agency shall comply with applicable uniform administrative
requirements, as described in 24 CFR Section 570.502. The Operating Agency shall
carry out each activity in compliance with all Federal laws and regulations described
in 24 CFR Part 570, Subparts J and K, except that:
i. The Operating Agency does not assume the County environmental
responsibilities described in 24 CFR Section 570.604; and
11. The Operating Agency does not assume the County's responsibility for
initiating the review process under Executive Order 12372.
Operating Agency agrees to be bound by applicable federal, state and local laws,
regulations and directives as they pertain to the performance of the Contract,
including, but not limited to, Sections a-i below. This Contract is subject to and
incorporates the terms of the Housing and Community Development Act of 1974, as
amended by the Cranston-Gonzales National Affordable Housing Act, 1990 and the
24 CFR Part 85.
a. Operating Agency shall comply with the Civil Rights Act of 1964 Title VI
which provides that no person shall, on the grounds of race, color, or
national origin, be excluded from participation in, be denied the benefits
of, or be subjected to discrimination under any program or activity
receiving federal financial assistance.
b. Operating Agency shall comply with Section 109 of the Housing and
Community Development Act of 1974 which states that no person in the
United States shall, on the grounds of race, color, sex or national origin be
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excluded from participation in, be denied the benefits of, or be subjected
to discrimination under any program or activity funded in whole or in part
with funds made available under this title.
c. The Operating Agency shall comply with the Age Discrimination Act of
1975 and Section 504 of the Rehabilitation Act of 1973,which require that
no person in the United States shall be excluded from participating in,
denied the benefits of, or subject to discrimination under this Contract on
the basis of age or with respect to an otherwise qualified disabled
individual.
d. The Operating Agency shall comply with 24 CFR Part 5, including non-
discrimination and equal opportunity requirements at 24 CFR 5.105(a).
Furthermore, the Operating Agency shall comply with 24 CFR Parts 5 and
203, which prohibit discrimination in HUD funded programs based upon
sexual orientation or gender identity. The rule precludes owners and
operators of HUD-assisted housing or housing who's financing is insured
by HUD from inquiring about the sexual orientation or gender identity of
an applicant or occupant.
e. The Operating Agency shall ensure equal opportunity, in the award and
performance of any contract, to all persons without regard to race, color,
gender, sexual orientation, religion, national origin, ancestry, age, marital
status, or disability.
f. During the performance of this contract, the Operating Agency agrees as
follows:
i. Operating Agency shall comply with Executive Order 11246 of
September 24, 1965, titled, Equal Employment Opportunity, later
amended by Executive Order 11375 of October 13, 1967, and
supplemented in Department of Labor Guidelines (41 CFR Chapter
60), which require that during the performance of this Contract, the
Operating Agency will not discriminate against any employee or
applicant for employment because of race, color, religion, sex or
national origin. The Operating Agency will take affirmative action
to ensure that applicants are employed, and that employees are
treated fairly during employment, without regard to their race,
color, religion, sex or national origin. Such action shall include, but
not be limited to the following: employment, promotion, demotion,
or transfer; recruitment or recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and
selection for training, including apprenticeship. The Operating
Agency agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided
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by the contracting officer setting forth the provisions of the non-
discrimination clause.
ii. The Operating Agency will, in all solicitations or advertisements for
employees placed by or on behalf of the Operating Agency, state
that all qualified applicants will receive consideration for
employment without regard to race, color, religion, sex or national
origin.
iii. The Operating Agency will send to each labor union or
representative of workers with which he has a collective bargaining
agreement or other contract or understanding, a notice to be provided
by the agency of the Operating Agency's contracting officer,
advising the labor union or worker's representative of the Operating
Agency's commitments under Section 202 of Executive Order No.
11246 of September 24, 1965, and shall post copies of the notice in
conspicuous places available to employees and applicants for
employment.
iv. The Operating Agency will comply with all provisions of Executive
Order No. 11246 of September 24, 1965, and of the rules,
regulations and relevant orders of the Secretary of Labor.
v. The Operating Agency will furnish all information and reports
required by the Executive Orders and by the rules, regulations and
orders of the Secretary of Labor, or pursuant thereto, and will permit
access to its books, records, and accounts by the Commission and the
Secretary of Labor for purposes of investigation to ascertain
compliance with such rules, regulations and orders.
vi. In the event the Operating Agency fails to comply with the non-
discrimination clauses of this Contract or with any of such rules,
regulations or orders, this Contract may be canceled, terminated or
suspended in whole or in part, and the Operating Agency may be
declared ineligible for further Government contracts in accordance
with procedures authorized in the Executive Orders and such other
sanctions may be imposed and remedies invoked as provided in the
Executive Orders or by rule, regulation or order of the Secretary of
Labor, or as otherwise provided by law.
vii.The Operating Agency will include the provisions of these
paragraphs in every subcontract or purchase order unless exempted
by rules, regulations, or orders of the Secretary of Labor issued
pursuant to Section 204 of the Executive Order No. 11246 of
September 24, 1965, that such provisions shall be binding upon each
subcontractor or vendor. The Operating Agency will take such
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actions with respect to any subcontract or purchase order as the
County may direct as a means of enforcing such provisions including
sanctions for noncompliance, provided however, that in the event the
Operating Agency becomes involved in, or is threatened with
litigation with a subcontractor or vendor as a result of such direction
by the County, the Operating Agency may request the United States
to enter into such litigation to protect the interests of the United
States.
g. The Operating Agency shall comply with Executive Order 13166, titled
"Improving Access to Services by Persons with Limited English
Proficiency." Executive Order 13166 requires that federally assisted
agencies make reasonable efforts to provide language assistance to ensure
meaningful access for Limited English Proficiency (LEP) persons to the
agency's programs and activities. HUD guidelines on LEP were
published in the Federal Register on January 22, 2007, and were effective
February 21, 2007. These HUD guidelines should be applied to federally-
subsidized housing, programs and other services which may be contracted
out to other contractors.
h. Should the Operating Agency require additional or replacement personnel
after the effective date of this Contract, the Operating Agency shall give
consideration for any such employment openings to participants in the
County's Department of Public Social Services' Greater Avenues for
Independence (GAIN) Program or General Relief Opportunity for Work
(GROW) Program who meet the Contractor's minimum qualifications for
the open position. The Operating Agency shall contact the County's
GAIN/GROW Division at (626) 927-5354 for a list of GAIN/GROW
participants by job category.
i. The Operating Agency is prohibited by the Department of Interior and
Related Agencies Appropriations Act, known as the Byrd Amendments,
and HUD's 24 CFR Part 87, from using federally appropriated funds for
the purpose of influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee
of Congress, or an employee of a Member of Congress in connection with
the awarding of any Federal contract, the making of any Federal grant,
loan or cooperative Contract, and any extension, continuation, renewal,
amendment or modification of said documents.
Should the Operating Agency or persons/subcontractors acting on behalf of
the Contract fail to fully comply with the Federal Lobbyist Requirements
civil penalties shall result.
j. Operating Agency and each County lobbyist or County lobbyist firm, as
defined in Los Angeles County Code Chapter 2.160 (County Ordinance
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93-0031), retained by the Operating Agency, shall fully comply with the
requirements as set forth in said County Code Chapter.
9. LOBBYING CERTIFICATIONS. With regard to the certification for contracts,
grants, loans and Cooperative Agreements, the undersigned certify,to the best of their
knowledge and belief,that:
a. The Operating Agency is familiar with the Los Angeles County Code
Chapter 2.160 and assures the County that all persons acting on behalf of
the Operating Agency will comply with the County Code.
b. The Operating Agency is familiar with the Federal Lobbyist Requirements
and assures the County that all persons and/or subcontractors acting on
behalf of the Operating Agency will comply with the Federal Lobbyist
Requirements.
c. No Federal appropriated funds have been paid or will be paid, by or on
behalf of the undersigned, to any person for influencing or attempting to
influence an officer or employee of any agency, a Member of Congress, an
officer or employee of Congress, or an employee of a Member of
Congress in connection with the awarding of any Federal contract, the
making of any Federal grant, the making of any Federal loan, the entering
into of any cooperative agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal contract, grant, loan,
or cooperative agreement.
d. If any funds other than Federal appropriated funds have been paid or will
be paid to any person for influencing or attempting to influence an officer
or employee of any agency, a Member of Congress, or any employee of a
Member of Congress in connection with this Federal contract, grant, loan,
or cooperative agreement, the undersigned shall complete and submit
Standard Form-LLL, "Disclosure Form to Report Lobbying", in
accordance with its instructions.
e The undersigned shall require that the language of this certification be
included in the award documents for all sub-awards at all tiers (including
sub-contracts, sub-grants, and contracts under grants, loans, and
cooperative agreements) and that all sub-recipients shall certify and
disclose accordingly.
This certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by section 1352, title
31, U.S. Code. Any person who fails to file the required certification shall be subject
to a civil penalty of not less than $10,000 and not more than $100,000 for each such
failure.
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10. TERMINATION FOR FAILURE TO COMPLY WITH FEDERAL AND COUNTY
LOBBYIST REQUIREMENTS. Failure on the part of the Operating Agency and/or
its Lobbyist(s) to fully comply with said Federal and County Lobbyist requirements
shall constitute a material breach of the Contract upon which the County may
immediately terminate this Contract, and the Operating Agency shall be liable for any
and all damages incurred by the County and/or any federal agency as a result of such
breach
11. PROGRAM REVIEW AND EVALUATION. The County will monitor, evaluate and
provide guidance to the Operating Agency in the performance of the CDBG Program.
Reviews will focus on the extent to which planned CDBG Program has been
implemented and measurable goals achieved effectiveness of program management,
and impact of the program.
Operating Agency shall make available for inspection to authorized County and
HUD personnel and their agents, for a total of five (5) years from the expiration date
of this Contract, all records, including financial, pertaining to its performance under
this Contract, and allow said County and HUD personnel and agents to inspect and
monitor Operating Agency's facilities and program operations, and interview
Operating Agency staff and program participants, as required by the County and/or
HUD.
Operating Agency agrees to submit all data that are necessary to complete the
Consolidated Annual Performance and Evaluation Report (CAPER) and monitor
program accountability and progress in accordance with HUD requirements in the
format and at the time designated by the Commission, through its Executive Director
or his designee.
Failure of Operating Agency to comply with the requirements of this Section shall
constitute a material breach of contract upon which the Commission, through its
Executive Director or his designee may cancel,terminate or suspend this Contract.
12. AUDITS. The Operating Agency shall make available for inspection and audit to
authorized County and HUD personnel and their agents, for a total of five (5) years
from the expiration date of this Contract, and allow said County and HUD personnel
and agents to inspect and audit all of its books and records relating to the operating
of each project or business activity which is funded in whole, or in part, with Federal
or State grant monies, including the project(s)under this Contract.
Failure of Operating Agency to comply with the requirements of this Section shall
constitute a material breach of contract upon which the Commission, through its
Executive Director may cancel,terminate or suspend this Contract.
13. AUDIT EXCEPTIONS. Operating Agency agrees that in the event the program
established hereunder is subject to audit exceptions by appropriate audit agencies, it
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shall be responsible for complying with such exceptions and paying the County the
full amount of County's liability to the funding agency resulting from such audit
exceptions.
14. CONFIDENTIALITY OF REPORTS. Operating Agency shall keep confidential all
reports, information and data received, prepared or assembled pursuant to
performance hereunder. Such information shall not be made available to any person,
firm, corporation or entity without the prior written consent of the County.
15. SAFETY STANDARDS AND ACCIDENT PREVENTION. The Operating
Agency shall comply with all applicable federal, state and local laws governing
safety, health and sanitation. The Operating Agency shall provide all safeguard
safety devices and protective equipment and take any other needed actions, as its
own responsibility, as reasonably necessary to protect the life and health of
employees on the job, the safety of the public and personal and real property in
connection with the performance of this Contract.
The Operating Agency shall also comply with sections 103 and 107 of the Contract
Work Hours and Safety Standards Act (40 U.S.C. 327A 330) as supplemented by
Department of Labor Regulations (29 CFR part 5). This requirement will pertain to
construction contracts awarded to Operating Agencies and subcontractors in excess
of$2,000, and in excess of$2500 for other contracts which involve the employment
of mechanics and laborers.
16. SEVERABILITY. In the event that any provision herein contained is held to be
invalid, void, or illegal by any court of competent jurisdiction, the same shall be
deemed severable from the remainder of this Contract and shall in no way affect,
impair or invalidate any other provision contained herein. If any such provision
shall be deemed invalid due to its scope of breadth, such provision shall be deemed
valid to the extent of the scope of breadth permitted by law.
17. INTERPRETATION. No provision of this Contract shall be interpreted for or
against either party because that party or that party's legal representative drafted
such provision, but this Contract is to be construed as if both parties drafted it hereto.
18. WAIVER. No waiver by the County of any breach of any provision of this Contract
shall constitute a waiver of any other breach or of such provision. Failure of the
County to enforce at any time, or from time to time, any provision of this Contract
shall not be construed as a waiver thereof. The rights and remedies set forth in this
section 18 shall not be exclusive and are in addition to any other rights and remedies
provided by law or under this Contract.
19. REPORTS AND RECORDS. Operating Agency agrees to prepare and submit
financial, program progress, monitoring, evaluation or other reports required by
County. Operating Agency shall maintain, and permit on site inspections of such
property, personnel, financial and other records and accounts as are considered
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necessary by County to assure proper accounting for all Contract funds during the
term of this Contract and for a total of five (5) years thereafter. Operating Agency
will ensure that its employees, agents, City Council members, officers and board
members furnish such information which, in the judgment of County representatives,
may be relevant to a question of compliance with contractual conditions, with
County or HUD directives, or with the effectiveness, legality and achievements of
the program.
20. AFFIRMATIVE ACTION. The Operating Agency shall make every effort to ensure
that all projects funded wholly or in part by CDBG funds shall provide equal
employment and career advancement opportunities for minorities and women. In
addition, the Operating Agency shall make every effort to employ residents of the
project area(s) specified in the ATI(s).
21. DISCRIMINATION. No person shall, on the grounds of race, gender sexual
orientation, creed, color, religion, national origin, age or physical handicap, be
excluded from participating in, be refused the benefits of, or otherwise be subject to
discrimination in any activities,programs or employment supported by this Contract.
22. FISCAL LIMITATIONS. The United States of America, through HUD, may in the
future place programmatic or fiscal limitation(s) on CDBG funds. Accordingly, the
County reserves the right, in its sole discretion, to revise this Contract in order to
take into account actions and events affecting CDBG program funding. In the event
of a CDBG funding reduction by HUD, the County may, in its sole discretion,
reduce the compensation amount of this Contract in whole or in part, or may limit
the rate of the Operating Agency's use of both its uncommitted and its unspent funds.
The Commission, through its Executive Director, or his designee, may act for the
County in implementing and effecting such a reduction in the compensation amount
of this Contract.
Where the Commission, through its Executive Director, or his designee, has
reasonable grounds to question the fiscal accountability, financial soundness, or
compliance with this Contract of the Operating Agency, the Commission, through its
Executive Director, or his designee, may suspend this Contract for up to sixty (60)
days, upon three (3) days notice to Operating Agency pending an audit or other
resolution of such questions. In no event, however, shall a revision made by the
County affect expenditures and legally binding commitments made by the Operating
Agency before it received notice of such revision, provided that such amounts have
been committed in good faith and are otherwise allowable, that such commitments
are consistent with HUD cash withdrawal guidelines, and that CDBG funds are
available to County to satisfy such expenditures or legally binding commitments.
23. PROGRAM INCOME. Program Income shall be returned monthly during the
duration of this Contract. Upon termination of this Contract, the County reserves the
right to determine the final disposition of any program income, as described in 24
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CFR Section 570.504, accumulated under the project(s) set forth in Exhibit A. Said
disposition may include the County taking possession of said program income.
24. TIME OF PERFORMANCE MODIFICATIONS. The Executive Director, or his
designee, may grant time of performance modifications to this Contract when such
modifications:
i. Are specifically requested by Operating Agency;
ii. Will not change the project goals or scope of services;
iii.Are in the best interests of the County and Operating Agency in performing the
scope of services under this Contract;
iv.Do not alter the total amount of compensation under this Contract; and
v. Are in writing prior to expenditures being made.
25. JOINT FUNDING. For projects in which there are sources of funds in addition to
CDBG funds, Operating Agency shall provide proof of such other funding upon
request. The County shall not pay for any costs incurred by Operating Agency,
which are funded by other sources. All restrictions and/or requirements provided for
in this Contract, relative to accounting, budgeting and reporting, apply to the total
project regardless of funding source. Separate financial records shall be kept for each
funding source and program.
26. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this
Contract will be acting in an independent capacity and not as agents, employees,
partners, joint venture partners or associates of one another. The employees or
agents of one party shall not be deemed or construed to be the employees or agents
of the other party for any purpose whatsoever, including workers' compensation
liability. Operating Agency shall bear the sole responsibility and liability for
furnishing workers' compensation benefits to any person for injuries arising from or
connected with services performed on behalf of the Operating Agency pursuant to
this Contract.
27. USE OF FUNDS. All funds approved under this Contract shall be used solely for
costs approved in the project budget(s) for the ATI(s) under this Contract. Contract
funds shall not be used as a cash advance between contracts, as security to guarantee
payments for any nonprogram obligations, or as loans for nonprogram activities.
Separate financial records shall be kept for such funding source(s)and program.
28. DISALLOWED COSTS. If Operating Agency has failed to return unexpended
funds or funds spent for disallowed costs related to any CDBG contract it has with
the County, County may withhold and offset payments to be made to Operating
Agency under this Contract.
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29. ASSIGNMENT. Operating Agency may not assign or subcontract any portion of
this Contract without the express written consent of the County. Any attempt by
Operating Agency to assign or subcontract any performance of the terms of this
Contract shall be null and void and shall constitute a material breach of this
Contract, upon which the County may immediately terminate this Contract through
the Executive Director.
30. SUBCONTRACTING. The requirements of this Contract may not be subcontracted
by the Operating Agency without compliance of procurement standards and methods
as outlined in 24 CFR, Part 85, Section 85.36 of the Common Rule. Any attempt by
the Operating Agency to subcontract without adherence to federal regulations as
required by the County may be deemed a material breach of this Contract.
If the Operating Agency desires to subcontract, the Operating Agency shall provide
the following information promptly at the County's request:
• A description of the work to be performed by the Subcontractor;
• A draft copy of the proposed subcontract; and
• Other pertinent information and/or certifications requested by the County.
The Operating Agency shall indemnify and cause the subcontractor(s) to indemnify
and hold the County harmless with respect to the activities of each and every
subcontractor in the same manner and to the same degree as if such subcontractor(s)
were the Operating Agency's employees.
The Operating Agency shall remain fully responsible for all performances required
of it under this Contract, including those that the Operating Agency has determined
to subcontract, notwithstanding the County's approval of the Operating Agency's
proposed subcontract.
The County's consent to subcontract shall not waive the County's right to prior and
continuing approval of any and all personnel, including subcontractor employees,
providing services under this Contract. The Operating Agency is responsible to
notify its subcontractors of this County right.
The Commission's Executive Director or his designee is authorized to act for and on
behalf of the County with respect to approval of any subcontract and subcontractor
employees. After approval of the subcontract by the Commission, the Operating
Agency shall forward a fully executed subcontract to the County for their files.
The Operating Agency shall be solely liable and responsible for all payments or
other compensation to all subcontractors and their officers, employees, agents, and
successors in interest arising through services performed hereunder, notwithstanding
the County's consent to subcontract.
Revised 04/12 12
The Operating Agency shall obtain and maintain on site certificates of insurance,
which establish that the subcontractor maintains all the programs of insurance
required by the County from each approved subcontractor. The County may request
copies of the certificates and endorsements required herein at any time. Failure by
the Operating Agency to comply with the County's request may be deemed by the
County as a material breach of this contract.
31. AMENDMENTS/VARIATIONS. This writing, with attachments, embodies the
whole of the agreement of the parties hereto. No oral agreement shall be binding
upon the parties unless expressly stated herein. Except as provided herein, any
addition to or variation of the terms of this Contract shall not be valid unless made in
the form of a written amendment of this Contract formally approved and executed by
both parties. All Amendments must be received by County no more than sixty (60)
calendar days from the expiration date of this Contract.
32. NOTICES. All notices shall be served in writing. The notices to the Operating
Agency shall be sent to the following address:
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes, CA 90275-5351
Notices, reports and statements to the County shall be personally delivered or sent
via First Class U.S. mail to the Executive Director or his designee at:
Community Development Commission of the County of Los Angeles
2 Coral Circle
Monterey Park, California 91755
Each party shall promptly notify the other of any change in its mailing address.
33. WARRANTY OF AUTHORITY. The undersigned signatory for the Operating
Agency covenants, warrants and guarantees that he/she is empowered and authorized
to sign this Contract on behalf of Operating Agency in accordance with the terms
and conditions stated herein.
34. REVERSION OF ASSETS. Upon expiration or termination of this Contract, the
Operating Agency shall immediately transfer to the County any remaining CDBG
funds on hand at the time of expiration or termination and any accounts receivable
attributable to the use of CDBG funds. Any real property under the Operating
Agency's ownership or possession that was acquired or improved in whole or in part
with CDGB funds in excess of$25,000 shall be either:
i. Used to meet one of the national objectives in 24 CFR Section 570.208 for
five (5) years following the close-out of the CDBG grant from which
Revised 04/12 13
assistance to the property was provided after expiration of this Contract (24
CFR Section 570.505), or such longer period of time as may be specified in
the Exhibit A; or
ii. Disposed of in a manner, which results in the County being reimbursed in the
amount of the current market value of the property less any portion thereof
attributable to expenditures of non-CDBG funds for acquisition of, or
improvement to, the property. Such reimbursement is not required after the
period of time and under the conditions specified in subparagraph i above.
The Operating Agency shall maintain the use of the real property and documentation
verifying compliance with the national objective for a period of five (5) years after
closeout of this project. The Operating Agency must submit to the County a
completed certification form verifying that the real property is used exclusively for
the eligible use and purpose as provided in the Exhibit A. This form shall be
submitted on an annual basis, when requested, beginning in year two (2) and for a
period of five (5) years after closeout of the project. In case of a change of use or
disposition, the County must be reimbursed for the market value of the property at
the time of disposition, or proceeds from the sale, less the pro rata share of
expenditures made with non-CDBG funds to acquire or improve the property.
35. CERTIFICATION PROHIBITING USE OF EXCESSIVE FORCE. In accordance
with Section 519 of Public Law 101-144, the undersigned certifies, to the best of the
Operating Agency's knowledge and belief that it has adopted and is enforcing:
(1) A policy prohibiting the use of excessive force by law enforcement
agencies within its jurisdiction against any individuals engaged in non-
violent civil rights demonstrations; and
(2) A policy of enforcing applicable State and local laws against individuals
physically barring entrance to or exit from a facility or location which is
the subject of such non-violent civil rights demonstrations within its
jurisdiction.
36. DRUG-FREE WORKPLACE. Operating Agency agrees to provide a drug-free
workplace by:
(1) Publishing a statement notifying employees that the unlawful
manufacture, distribution, dispensing, possession, or use of a controlled
substance is prohibited in the Operating Agency's workplace and
specifying the actions that will be taken against employees for violation of
such prohibition;
(2) Establishing an ongoing drug-free awareness program to inform
employees about-
Revised 04/12 14
a. The dangers of drug abuse in the workplace;
b. The Operating Agency's policy of maintaining a drug-free
workplace;
c. Any available drug counseling, rehabilitation, and employee
assistance programs; and
d. The penalties that may be imposed upon employees for drug abuse
violations occurring in the workplace;
(3) Making it a requirement that each employee to be engaged in the
performance of the grant be given a copy of the statement required by
paragraph 1 of this Section 36;
(4) Notifying the employee in the statement required by paragraph 1 of this
Section 36 that, as a condition of employment under the grant, the
employee will -
a. Abide by the terms of the statement; and
b. Notify the employer in writing of his or her conviction for a
violation of a criminal drug statute occurring in the workplace no
later than five calendar days after such conviction;
(5) Notifying the County in writing, within ten calendar days after receiving
notice under subparagraph 4(b) from an employee or otherwise receiving
actual notice of such conviction. Employers of convicted employees must
provide notice, including position title, to every grant officer or other
designee on whose grant activity the convicted employee was working,
unless the Federal agency has designated a central point for the receipt of
such notices. Notice shall include the identification number(s) of each
affected grant;
(6) Taking one of the following actions, within 30 calendar days of receiving
notice under subparagraph 4(b), with respect to any employee who is so
convicted -
a. Taking appropriate personnel action against such an employee, up
to and including termination, consistent with the requirements of
the Rehabilitation Act of 1973, as amended; or
b. Requiring such employee to participate satisfactorily in a drug
abuse assistance or rehabilitation program approved for such
purposes by a Federal, State, or local health, law enforcement, or
other appropriate agency;
Revised 04/12 15
(7) Making a good faith effort to continue to maintain a drug-free workplace
through implementation of paragraphs 1, 2, 3, 4, 5, and 6.
37. RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE
PLAN. Section 104(d) of the Housing and Community Development Act of 1974,
also known as the Barney Frank Amendment, requires relocation assistance for
displaced low-income families and requires one-for-one replacement of
low/moderate income dwelling units that are demolished or converted to other use.
When CDBG funds are used in a project, including financing for rehabilitation, or
project delivery costs, Section 104(d) is triggered. CDBG Regulations further
describe the requirements under 24 CFR Section 570.606 Displacement, Relocation,
Acquisition, and Replacement of Housing.
Operating Agency must adopt and make public a Residential Antidisplacement and
Relocation Assistance Plan as part of its administrative requirements to HUD.
Before Operating Agency enters into a Contract committing it to provide funds for
any activity that will directly result in the demolition, or conversion to another use,
of low/moderate-income dwelling units, it must make public and submit to HUD the
information as described in Sections 24 CFR Sections 570.457; 5 70.496 (a); 570.606
(c); and 570.702 (0.
38. SECTION 3. In order to comply with the Housing and Urban Development Act of
1968, the Operating Agency and, where applicable, its contractor(s) and
subcontractor(s) shall comply with Section 3 regulations as described in 24 CFR Part
135. Section 3 compliance activities of the Operating Agency and its contractor(s)
and subcontractor(s) shall be governed by the Commission's CDBG Compliance
Instructions, as amended, which can be made available to Operating Agency for
inspection and copying upon request, if Operating Agency does not already possess
a copy.
a. The work to be performed under this Contract is subject to the requirements
of Section 3 of the Housing and Urban Development Act of 1968, as
amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3 is to
ensure that employment and other economic opportunities generated by
HUD assistance or HUD-assisted projects covered by Section 3, shall, to the
greatest extent feasible, be directed to low-and very low-income persons,
particularly persons who are recipients of HUD assistance for housing.
b. The parties to this Contract agree to comply with HUD's regulations in 24
CFR Part 135, which implement Section 3. As evidenced by their execution
of this Contract, the parties to this Contract certify that they are under no
contractual or other impediment that would prevent them from complying
with the Part 135 regulations.
Revised 04/12 16
c. The Operating Agency agrees to send to each labor organization or
representative of workers with which the Contractor has a collective
bargaining Contract or other understanding, if any, a notice advising the
labor organization or workers' representative of the Operating Agency's
commitments under this Section 3 clause, and will post copies of the notice
in conspicuous places at the work site where both employees and applicants
for training and employment positions can see the notice. The notice shall
describe the Section 3 preference, shall set forth minimum number and job
titles subject to hire, availability of apprenticeship and training positions, the
qualifications for each; and the name and location of the person(s) taking
applications for each of the positions; and the anticipated date the work shall
begin.
d. The Operating Agency agrees to include this Section 3 clause in every
subcontract subject to compliance with regulations in 24 CFR Part 135, and
agrees to take appropriate action, as provided in an applicable provision of
the subcontract or in this Section 3 clause, upon a finding that the
subcontractor is in violation of the regulations in 24 CFR Part 135. The
Operating Agency will not subcontract with any subcontractor where the
Operating Agency has notice or knowledge that the subcontractor has been
found in violation of the regulations in 24 CFR Part 135.
e. The Operating Agency will certify that any vacant employment positions,
including training positions, that are filled (1) after the Operating Agency is
selected but before the Contract is executed, and (2) with persons other than
those to whom the regulations of 24 CFR part 135 require employment
opportunities to be directed, were not filled to circumvent the Operating
Agency's obligations under 24 CFR Part 135.
f. Noncompliance with HUD's regulations in 24 CFR Part 135 may result in
sanctions, termination of this Contract for default, and debarment or
suspension from future HUD assisted contracts.
g. With respect to work performed in connection with Section 3 covered Indian
housing assistance, section 7(b) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450e) also applies to the work to be
performed under this Contract. Section 7(b) requires that to the greatest
extent feasible (i) preference and opportunities for training and employment
shall be given to Indians, and (ii) preference in the award of contracts and
subcontracts shall be given to Indian organizations and Indian-owned
Economic Enterprises. Parties to this Contract that are subject to the
provisions of Section 3 and section 7(b) agree to comply with Section 3 to
the maximum extent feasible, but not in derogation of compliance with
section 7(b).
Revised 04/12 17
39. COUNTY'S QUALITY ASSURANCE PLAN. The County will evaluate
Operating Agency's performance under this Contract on not less than an annual
basis. Such evaluation will include assessing Operating Agency's compliance with
all Contract terms and performance standards. Operating Agency's deficiencies
which County determines are severe or continuing and that may place performance
of the Contract in jeopardy, if not corrected, will be reported to the Board of
Supervisors. The report will include improvement/corrective action measures taken
by the County and Operating Agency. If improvement does not occur consistent
with the corrective measure, County may terminate this Contract, or impose other
penalties as specified in this Contract.
40. TERMINATION FOR IMPROPER CONSIDERATION (GRATUITIES). The
County may, by written notice to the Operating Agency, immediately terminate the
right of the Operating Agency to proceed under this Contract if it is found that
improper consideration, in any form, was offered or given by the Operating Agency,
either directly or through an intermediary, to any County officer, employee or agent
with the intent of securing the Contract or securing favorable treatment with respect
to the award, amendment or extension of the Contract or the making of any
determinations with respect to the Operating Agency's performance pursuant to the
Contract. In the event of such termination, the County shall be entitled to pursue the
same remedies against Operating Agency as it could pursue in the event of default
by the Operating Agency.
Operating Agency shall immediately report any attempt by the County officer or
employee to solicit such improper consideration. The Report shall be made to the
Executive Director of the Commission or the County Auditor-Controller's Employee
Fraud Hotline 800-544-6861.
41. INSURANCE. The Commission, acting as an agent of the County, authorizes the
Commission's Risk Manager to determine the requirements of the insurance policies
to be procured and maintained by Operating Agency with respect to its activities and
obligations hereunder. Without limiting Operating Agency's indemnification
requirements as set forth in section 43 below, the Operating Agency shall provide
and maintain at its own expense during the term of this Contract, a program of
insurance satisfactory to the Commission's Risk Manager covering its operations
hereunder, as specifically defined in Exhibit B to this Contract, a copy of which is
attached hereto and incorporated herein by this reference.
42. FAILURE TO PROCURE INSURANCE. Failure on the part of Operating Agency
to procure or maintain required insurance, pursuant to Exhibit B shall constitute a
material breach of contract under which County may immediately suspend or
terminate this Contract or, at its discretion, procure or renew such insurance and pay
any and all premiums in connection therewith. All monies so paid by County shall
be repaid by the Operating Agency to County upon demand or County may offset
the cost of the premiums against any monies due to the Operating Agency from
County.
Revised 04/12 18
43. INDEMNIFICATION. Except as otherwise set forth below, the Operating Agency
agrees to indemnify, defend and hold harmless the County, the Commission, the
Housing Authority of the County of Los Angeles ("Housing Authority"), and each of
their elected and appointed officers, officials, representatives, employees, and agents
(hereinafter collectively referred to as "Public Agencies") from and against any and
all liability, demands, damages, claims, causes of action, fees, (including reasonable
attorneys' fees, expert witness' fees, defense costs), and expenses, including, but not
limited to, claims for bodily injury, property damage, and death (hereinafter
collectively referred to as "Liabilities"), arising from, related to, or connected with
the Operating Agency's acts, errors, or omissions. Operating Agency shall not be
required to indemnify, defend, and hold harmless the Public Agencies from any
Liabilities that arise from the sole negligence or willful misconduct of Public
Agencies.
In the event that Operating Agency provides construction services in relation to the
construction of a project related in any way to this Contract, with respect to those
construction services, Operating Agency agrees to indemnify, defend, and hold
harmless Public Agencies from and against any and all Liabilities that arise out of,
pertain to, or relate to such project or the construction services of Operating
Agency. Operating Agency shall not be required to indemnify, defend, and hold
harmless Public Agencies from any Liabilities that arise from the active negligence,
sole negligence or willful misconduct of Public Agencies, Public Agencies' agents,
servants, or independent contractors who are directly responsible to Public Agencies.
In the event that Operating Agency contracts with another entity (hereinafter
"Construction Entity") for construction services to be provided in relation to the
construction of a project (hereinafter "Operating Agency-Construction Entity
Contract"), Operating Agency agrees that language substantially equivalent to the
following shall be incorporated in its contract with Construction Entity in favor of
Public Agencies: Construction Entity agrees to indemnify, defend, and hold
harmless Public Agencies from and against any and all liabilities demands, damages,
claims, causes of action, fees (including reasonable attorney's fees and costs and
expert witness fees), and expenses, including, but not limited to, claims for bodily
injury, property damage, and death (hereinafter collectively referred to as
"Liabilities"), that arise out of, pertain to, or relate to the project or the construction
services of Construction Entity, its employees, representatives, consultants,
subcontractors, agents, or any other entity for which Construction Entity is
responsible. Construction Entity shall not be required to indemnify, defend, and
hold harmless Public Agencies from any Liabilities that arise from the active
negligence, sole negligence or willful misconduct of Public Agencies, Public
Agencies' agents, servants, or independent contractors who are directly responsible
to Public Agencies. This indemnification clause shall remain in full force and effect
following the expiration and/or termination of the Operating Agency-Construction
Entity Contract.
Revised 04/12 19
In the event that Operating Agency provides design professional services in relation
to a project related in any way to this Contract, Operating Agency agrees to
indemnify, defend, and hold harmless Public Agencies from and against any and all
Liabilities that arise out of, pertain to, or relate to the negligence, recklessness, or
willful misconduct of Operating Agency.
In the event that Operating Agency contracts with another entity (hereinafter
"Design Professional Entity") for design professional services to be provided in
relation to a project related in any way to this Contract (hereinafter "Operating
Agency-Design Professional Contract"), Operating Agency agrees that language
substantially equivalent to the following shall be incorporated in the Operating
Agency-Design Professional Contract in favor of Public Agencies, if such contract is
entered into subsequent to the execution date of this Contract: Design Professional
Entity agrees to indemnify, defend, and hold harmless Public Agencies from and
against any and all liability, demands, damages, claims, causes of action, fees
(including reasonable attorney's fees and costs and expert witness fees), and
expenses, including, but not limited to, claims for bodily injury, property damage,
and death (hereinafter collectively referred to as "Liabilities"), that arise out of,
pertain to, or relate to the negligence, recklessness, or willful misconduct of Design
Professional Entity, its employees, representatives, consultants, subcontractors,
agents, or any other entity for which Design Professional Entity is responsible. This
indemnification clause shall remain in full force and effect following the expiration
and/or termination of the Operating Agency-Design Professional Contract.
Operating Agency further agrees to indemnify, defend, and hold harmless the Public
Agencies from and against any and all Liabilities relating to the Operating Agency's
acts or omissions, whether civil or criminal, intentional or unintentional, including,
without limitation, allegations or acts of physical abuse, mental abuse, psychological
abuse, senior abuse, sexual abuse, molestation, maltreatment, or mistreatment,
related in any way to this Contract or the services or work to be provided hereunder.
The above mentioned indemnification provisions shall remain in full force and effect
and survive the cancellation, termination and/or expiration of this Contract.
Operating Agency further agrees to require any entities with which it contracts to
agree to and abide by the above mentioned indemnification requirements in favor of
the Public Agencies, as applicable to each of them.
44. NOTICE TO EMPLOYEES REGARDING THE FEDERAL EARNED INCOME
CREDIT. Operating Agency shall notify its employees, and shall require each
subcontractor to notify its employees, that they may be eligible for the Federal
Earned Income Credit under the federal income tax laws. Such notice shall be
provided in accordance with the requirements set forth in Internal Revenue Service
Notice 1015.
45. TERMINATION FOR CAUSE. This Contract may be terminated by the County
upon written notice to the Operating Agency for just cause (failure to perform
Revised 04/12 20
satisfactorily) with no penalties incurred by the County upon termination or upon the
occurrence of any of the following events in a, b or c:
a. Should the Operating Agency fail to perform all or any portion of the work
required to be performed hereunder in a timely manner or properly carry out
the provisions of the Contract in their true intent and meaning, then in such
case, notice thereof in writing will be served upon the Operating Agency, and
should the Operating Agency neglect or refuse to provide a means for
satisfactory compliance with this Contract and with the direction of the
County within the time specified in such notice, the County shall have the
power to suspend or terminate the operations of the Operating Agency in
whole or in part.
b. Should the Operating Agency fail within five days to perform in a satisfactory
manner, in accordance with the provisions of the Contract, or if the work to be
done under said Contract is abandoned for more than three days by the
Operating Agency; then notice of deficiency thereof in writing will be served
upon the Operating Agency.
Should the Operating Agency fail to comply with the terms of said Contract
within five days, upon receipt of said written notice of deficiency, the
Executive Director of Commission shall have the power to suspend or
terminate the operations of the Operating Agency in whole or in part.
c. In the event that a petition of bankruptcy shall be filed by or against the
Operating Agency.
46. TERMINATION FOR CONVENIENCE. The County reserves the right to cancel
this Contract for any reason at all upon 30 days' prior written notice to Operating
Agency. In the event of such termination, Operating Agency shall be entitled to a
prorated portion paid for all satisfactory work unless such termination is made for
cause, in which event, compensation if any, shall be adjusted in such termination.
47. CONFLICT OF INTEREST. The Operating Agency, its agents and employees shall
comply with all applicable Federal, State and County laws and regulations governing
conflict of interest including, but not limited to, 24 CFR Part 570.611 and 24 CFR
Part 85, Section 85.36(b). The Operating Agency agrees to incorporate the language
found in this Section 47, CONFLICT OF INTEREST in contracts using CDBG
funds and subject to compliance with conflict of interest Federal, State and County
laws.
The general rule shall be that no person described in the Persons covered section
below of this Section 47, CONFLICT OF INTEREST, who exercises, or has
exercised any function or responsibilities with respect to CDBG activities, or who is
in a position to participate in a decision making process or gain inside information
with regards to such activities, may obtain a financial interest or benefit from a
Revised 04/12 21
CDBG-assisted activity, or have a financial interest in any contract, subcontract , or
agreement with respect to a CDBG-assisted activity, or with respect to the proceeds
of the CDBG-assisted activity, either for themselves or those with whom they have
business or immediate family ties, during their tenure or for one year thereafter.
Persons covered— The conflict of interest provisions of this Section 34, CONLICT
OF INTEREST, shall apply to any person who is an employee, agent, consultant,
officer, or elected official or appointed official of the CDBG Operating Agency, or
of any designated public agencies, or of any subrecipients that are receiving CDBG
funds.
The Operating Agency represents, warrants and agrees that to the best of its
knowledge, it does not presently have, nor will it acquire during the term of this
Contract, any interest direct or indirect, by contract, employment or otherwise, or as
a partner, joint venture or shareholder (other than as a shareholder holding a one
(1%) percent or less interest in publicly traded companies) or affiliate with any
business or business entity that has entered into any contract, subcontract or
arrangement with the County or Commission. Upon execution of this Contract and
during its term, as appropriate, the Operating Agency shall, disclose in writing to the
County any other contract or employment during the term of this Contract by any
other persons, business or corporation in which employment will or may likely
develop a conflict of interest between the County's and/or Commission's interest
and the interests of the third parties.
48. FINANCIAL CLOSE OUT PERIOD. The Operating Agency agrees to complete all
necessary financial close out procedures required by the County, within a period of
not more than sixty (60) calendar days from the expiration date of this Contract.
This time period will be referred to as the financial close out period. The County is
not liable to provide reimbursement for any expenses or costs associated with this
Contract after the expiration of the financial close out period. After the expiration of
the financial close out period, those funds not paid to the Operating Agency under
this Contract, if any, may be immediately reprogrammed by the Operating Agency
into other eligible activities. The County may request a final financial audit for
activities performed under this Contract at the expiration of the financial close out
period.
49. NONEXPENDABLE PROPERTY. Nonexpendable property means leased or
purchased tangible personal property, included, but not limited to a vehicle, office
equipment, etc. having a useful life of more than one (1)year and an acquisition cost
of $5,000 or more per unit. Nonexpendable property shall also include, but not
limited to real property, and any interest in real property (including any mortgage or
other encumbrance of real property).
Any utilization of funds derived from the sale or disposition of nonexpendable
property must have prior approval of the County and otherwise comply with all
applicable laws and regulations. In the event the Contract is terminated, the County
reserves the right to determine the final disposition of said nonexpendable property
Revised 04/12 22
acquired for this project with CDBG funds, including funds derived there from. Said
disposition may include taking possession of said nonexpendable property.
The Operating Agency shall maintain up-to-date property records, listing all non-
expendable property with an acquisition cost of$5,000 or more that it has leased or
purchased during the term of this Contract. The following items should be included
in the list: description of property, serial or ID number, source of funds that
purchased the item (including the award number), owner of property, date of
purchase, cost, percentage of cost paid with Federal monies, location, condition and
use of property, date of disposal, and sale price or method used to determine the
current market value. The Operating Agency shall conduct a physical inventory of
the nonexpendable property at least once a year, reconcile the inventory with its
property records and maintain these records for five years (5) after the termination or
expiration of this Contract.
In the event there is a change of use or disposition of the property during the term of
this Contract, except in the case of real property in excess of$25,000, if the market
value of the property is over $5,000, the Operating Agency shall immediately pay to
the County a pro-rata share of the current market value of the property, or proceeds
from the sale. The pro-rata share shall be calculated by multiplying the current
market value by the percentage of the purchase price paid with CDBG funds or
program income.
If there is a residual inventory of unused supplies, upon termination or completion of
the project or termination or expiration of this Contract, with a current aggregate
market value exceeding $5,000 and if the supplies are not needed for any other
federally sponsored program(s) or project(s), the Operating Agency shall
immediately pay the County for its pro rata share of the current aggregate market
value or proceeds from the sale calculated at the percentage of the purchase price
paid with CDBG funds. The Operating Agency shall obtain prior approval of the
County and otherwise comply with all applicable laws and regulations prior to
utilizing the supplies for any other federally sponsored program(s)or project(s).
50. PURCHASE OR LEASE OF NONEXPENDABLE PROPERTY. Operating
Agency shall obtain three (3) documented bids prior to purchasing or leasing any
nonexpendable personal property as approved in Exhibit A, Project Description and
Activity Budget. The Operating Agency must purchase or lease from the lowest,
responsive and responsible bidder. Operating Agency shall properly identify and
inventory all nonexpendable property purchased or leased for $5,000 or more,
pursuant to the Contract. Operating Agency shall provide said inventory to the
County upon request.
51. USE OF RECYCLED-CONTENT PAPER PRODUCTS. Consistent with the
County Board of Supervisors' policy to reduce the amount of solid waste deposited
at the County landfills, the Operating Agency agrees to use recycled-content paper to
the maximum extent possible.
Revised 04/12 23
52. ARCHITECTURAL BARRIERS ACT AND THE AMERICANS WITH
DISABILITIES ACT. The Architectural Barriers Act of 1968 (42 U.S.C. 4151-
4157) requires certain Federal and Federally funded buildings and other facilities to
be designed, constructed, or altered in accordance with standards that insure
accessibility to, and use by, physically handicapped people. A building or facility
designed, constructed, or altered with funds allocated or reallocated under this part
after December 11, 1995, and that meets the definition of residential structure as
defined in 24 CFR Section 40.2 or the definition of building as defined in 41 CFR
Part 101, is subject to the requirements of the Architectural Barriers Act of 1968 (42
U.S.C. 4151-4157) and shall comply with the Uniform Federal Accessibility
Standards (Appendix A to 24 CFR Part 40 for residential structures and Appendix A
to 41 CFR Parts 101-19 for general type buildings). The Americans with Disabilities
Act (42 U.S.C. Section 12131; 47 U.S.C. Sections 155.201, 218 and 225) (ADA)
provides comprehensive civil rights to individuals with disabilities in the areas of
employment, public accommodations, State and local government services, and
telecommunications. It further provides that discrimination includes a failure to
design and construct facilities for first occupancy after January 26, 1993 that are
readily accessible to and usable by individuals with disabilities. Further, the ADA
requires the removal of architectural barriers and communication barriers that are
structural in nature in existing facilities, where such removal is readily achievable--
that is, easily accomplishable and able to be carried out without much difficulty or
expense.
53. CONSTRUCTION\REHABILITATION PROJECTS. The Operating Agency shall
submit a request to the County, to conduct a Contract and Labor Compliance File
Review at least 30 calendar days prior to the anticipated completion of
construction/rehabilitation activities, but in no event later than April 1St of the current
fiscal year.
54. CONTRACTOR RESPONSIBILITY AND DEBARMENT. A responsible
contractor is a contractor, consultant, vendor or operating agency who has
demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity and
experience to satisfactorily perform the Contract. It is the policy of the Commission,
Housing Authority, and County to conduct business only with responsible
contractors.
a. The Contractor is hereby notified that if the County acquires information
concerning the performance of a Contractor on any CDBG contract, which
indicates that the Contractor is not responsible, the County may, in addition to
other remedies provided in the Contract, debar the Contractor from bidding or
proposing on, or being awarded, and/or performing work on County,
Commission, and/or Housing Authority contracts for a specified period of time,
which generally will not to exceed five years, but may exceed five years or be
permanent if warranted by circumstances, and terminate any or all existing
Revised 04/12 24
contracts the Contractor may have with the County, Commission, and/or Housing
Authority.
b. The County may debar a contractor, consultant, or vendor if the Board of
Commissioners finds, in its discretion, that the contractor, consultant, or vendor
has done any of the following: (1) violated any term of a contract with the
Commission, Housing Authority, or County, or a nonprofit corporation created by
the Commission, Housing Authority, or County (2) committed any act or
omission which negatively reflects on the its quality, fitness or capacity to
perform a contract with the Commission, Housing Authority, or County or any
other public entity, or a nonprofit corporation created by the Commission,
Housing Authority, or County, or engaged in a pattern or practice which
negatively reflects on same, (3) committed an act or offense which indicates a
lack of business integrity or business honesty, or (4) made or submitted a false
claim against the Commission, Housing Authority, County, or any other public
entity.
c. If there is evidence that a Contractor may be subject to debarment, the County
will notify the Contractor in writing of the evidence, which is the basis for the
proposed debarment and will advise the Contractor of the scheduled date for a
debarment hearing before the Contractor Hearing Board.
d. The Contractor Hearing Board will conduct a hearing where evidence on the
proposed debarment is presented. The Contractor and/or the Contractor's
representative shall be given an opportunity to submit evidence at that hearing.
After the hearing, the Contractor Hearing Board shall prepare a tentative proposed
decision, which shall contain a recommendation regarding whether the Contractor
should be debarred, and, if so, the appropriate length of time of the debarment.
The Contractor and the County shall be provided an opportunity to object to the
tentative proposed decision prior to its presentation to the Board of
Commissioners.
e. After consideration of any objections, or if no objections are submitted, a record
of the hearing, the proposed decision and any other recommendation of the
Contract Hearing Board shall be presented to the Board of Commissioners. The
Board of Commissioners shall have the right to modify, deny or adopt the
proposed decision and recommendation of the Hearing Board.
f. If a Contractor has been debarred for a period longer than five years, that
Contractor may, after the debarment has been in effect for at least five years,
submit a written request for review of the debarment determination to reduce the
period of debarment or terminate the debarment. The County may, in its
discretion, reduce the period of debarment or terminate the debarment if it finds
that the Contractor has adequately demonstrated one or more of the following:(1)
elimination of the grounds for which the debarment was imposed; (2) a bona fide
change in ownership or management; (3) material evidence discovered after
Revised 04/12 25
debarment was imposed; or (4) any other reason that is in the best interests of the
County.
g. The Contractor Hearing Board will consider a request for review of the debarment
determination only where (1)the Contractor has been debarred for a period longer
than five years; (2) the debarment has been in effect for at least five years; and (3)
the request is in writing, states one or more of the ground for reduction of the
debarment period or termination of the debarment, and includes supporting
documentation. Upon receiving an appropriate request, the Contractor Hearing
Board will provide notice of the hearing on the request. At the hearing, the
Contractor Hearing Board shall conduct a hearing where evidence on the
proposed reduction of debarment period or termination of debarment is presented.
This hearing shall be conducted and the request for review decided by the
Contractor Hearing Board pursuant to the same procedures as for a debarment
Hearing.
h. The Contractor Hearing Board's proposed decision shall contain a
recommendation on the request to reduce the period of debarment or terminate the
debarment. The Contractor Hearing Board shall present its proposed decision and
recommendation to the Board of Commissioners. The Board of Commissioners
shall have the right to modify, deny or adopt the proposed decision and
recommendation of the Contractor Hearing Board.
i. These terms shall also apply to subcontractors and sub consultants of County,
Commission, or Housing Authority contractors, consultants, vendors and
operating agencies.
55. COPELAND "ANTI-KICKBACK"ACT. The Operating Agency shall comply with
the Copeland "Anti-Kickback" Act (18 U.S.C. 874) as supplemented by Department
of Labor regulations (29 CFR part3). These terms shall apply to construction
contracts in excess of$2,000 awarded to the Operating Agency, as well as contracts
awarded to subcontractors and consultants
56. DAVIS-BACON ACT. The Operating Agency shall comply with the Davis-Bacon
Act (40 U.S.C. 276a to 276a-7) as supplemented by the Department of Labor
regulations (29 CFR part 5). These terms shall apply to construction contracts in
excess of$2,000 awarded to the Operating Agency, as well as contracts awarded to
subcontractors and consultants.
57. PATENT RIGHTS. The Operating Agency must adhere to federal requirements and
regulations relating to patent rights with respect to any discovery or invention which
arises or is developed in the course of or under this contract.
Revised 04/12 26
58. OPERATING AGENCY'S WARRANTY OF ADHERENCE TO COUNTY'S
CHILD SUPPORT COMPLIANCE PROGRAM. Operating Agency acknowledges
that the County has established a goal of ensuring that all individuals who benefit
financially from County through contract are in compliance with their court-ordered
child, family and spousal support obligations in order to mitigate the economic
burden otherwise imposed upon County and its taxpayers.
As required by County's Child Support Compliance Program (County Code Chapter
2.200) and without limiting Operating Agency's duty under this Contract to comply
with all applicable provisions of law, Operating Agency warrants that it is now in
compliance and shall during the term of this Contract maintain compliance with
employment and wage reporting requirements as required by the Federal Social
Security Act (42 USC Section 653a) and California Unemployment Insurance Code
Section 1088.5, and shall implement all lawfully served Wage and Earnings
Withholding Orders or District Attorney Notices of Wage and Earnings Assignment
for Child or Spousal Support, pursuant to Code of Civil Procedure Section 706.031
and Family Code Section 5246(b).
59. TERMINATION FOR BREACH OF WARRANTY TO MAINTAIN
COMPLIANCE WITH COUNTY'S CHILD SUPPORT COMPLIANCE
PROGRAM. Failure of Operating Agency to maintain compliance with the
requirements set forth in Section 58, OPERATING AGENCY'S WARRANTY OF
ADHERENCE TO COUNTY'S CHILD SUPPORT COMPLIANCE PROGRAM
shall constitute a default by Operating Agency under this Contract. Without limiting
the rights and remedies available to County under any other provision of this
Contract, failure to cure such default within ninety (90) days of notice by the Los
Angeles County Child Support Services Department (CSSD) shall be grounds upon
which the Executive Director or his designee may terminate this Contract pursuant to
Section 45, Termination for Cause.
60. POST MOST WANTED DELINQUENT PARENTS LIST. The Operating Agency
acknowledges that the County places a high priority on the enforcement of child
support laws and the apprehension of child support evaders. The Operating Agency
understands that it is County's policy to voluntarily post a list entitled L.A's Most
Wanted: Delinquent Parents poster in a prominent position at Operating Agency's
place of business. The CSSD will supply the Operating Agency with the poster to be
used.
61. EMPLOYEES OF OPERATING AGENCY. Workers' Compensation: Operating
Agency understands and agrees that all persons furnishing services to the County
pursuant to this Contract are, for the purposes of Workers' Compensation liability,
employees solely of the Operating Agency. Operating Agency shall bear sole
responsibility and liability for providing Workers' Compensation benefits to any
person for injuries arising from an accident connected with services provided to the
County under this Contract.
Revised 04/12 27
Professional Conduct: The County does not and will not condone any acts, gestures,
comments or conduct from the Operating Agency's employees, agents or
subcontractors which may be construed as sexual harassment or any other type of
activities or behavior that might be construed as harassment. The County will
properly investigate all charges of harassment by residents, employees or agents of
the County against any and all Operating Agency's employees, agents or
subcontractors providing services for the County. The Operating Agency assumes all
liability for the actions of the Operating Agency's employees, agents or
subcontractors and is responsible for taking appropriate action after reports of
harassment are received by the Operating Agency.
62. NOTICE TO EMPLOYEES REGARDING THE SAFELY SURRENDERED
BABY LAW. The Operating Agency shall notify and provide to its employees, and
shall require each subcontractor to notify and provide to its employees, a fact sheet
regarding the Safely Surrendered Baby Law, its implementation in Los Angeles
County, and where and how to safely surrender a baby. The fact sheet is available
on the Internet at wwvv.babysafela.org under the public information link for printing
purposes.
63. OPERATING AGENCY'S ACKNOWLEDGMENT OF COUNTY'S
COMMITMENT TO THE SAFELY SURRENDERED BABY LAW. The
Operating Agency acknowledges that the County places a high priority on the
implementation of the Safely Surrendered Baby Law. The Operating Agency
understands that it is the County's policy to encourage all County Contractors to
voluntarily post the County's "Safely Surrendered Baby Law" poster in a prominent
position at the Operating Agency's place of business. The Operating Agency will
also encourage its Subcontractors, if any, to post this poster in a prominent position
in the Subcontractor's place of business. The poster is available at
www.babysafela.org/docs/poster_e.pdf.
64. PHOTOGRAPHS, FOOTAGE, AND OTHER MEDIA MATERIALS. Operating
Agency represents and warrants that all photographs, videos, DVD's, footage,
magazines, and other media materials provided to the County are either public
record or have been legally procured without invading the copyright, ownership,
or privacy rights of any individual. Operating Agency further agrees to defend, hold
harmless, and indemnify the County from any and all liability, as described in
Section 43, Indemnification, arising from or related to County's use of said
photographs,videos, DVD's, footage, magazines, and other media materials.
65. OPERATING AGENCY'S WARRANTY OF COMPLIANCE WITH COUNTY'S
DEFAULTED PROPERTY TAX REDUCTION PROGRAM. The Operating
Agency acknowledges that the Commission has established a goal of ensuring that
all individuals and businesses that benefit financially from the Commission through
contract are current in paying their personal and real property tax obligations
(secured and unsecured roll) in order to mitigate the economic burden otherwise
imposed upon the County and its taxpayers. Unless the Operating Agency qualifies
Revised 04/12 28
for an exemption or exclusion, the Operating Agency warrants and certifies that to
the best of its knowledge it is now. in compliance, and during the term of this
Contract will maintain compliance, with the County's Defaulted Tax Program, found
at Los Angeles County Ordinance No. 2009-0026 and codified at Los Angeles
County Code, Chapter 2.206.
66. TERMINATION FOR BREACH OF WARRANTY TO MAINTAIN
COMPLIANCE WITH COUNTY'S DEFAULTED PROPERTY TAX
REDUCTION PROGRAM. Failure of the Operating Agency to maintain
compliance with the requirements set forth in Section 65, "OPERATING
AGENCY'S WARRANTY OF COMPLIANCE WITH COUNTY'S DEFAULTED
PROPERTY TAX REDUCTION PROGRAM" shall constitute default under this
Contract. Without limiting the rights and remedies available to the Commission
under any other provision of this Contract, failure of the Operating Agency to cure
such default within 10 days of notice shall be grounds upon which Commission may
suspend or terminate this contract pursuant to the County's Defaulted Property Tax
Reduction Program found at Los Angeles County Ordinance No. 2009-0026 and
codified at Los Angeles County Code, Chapter 2.206.
67. CLEAN AIR ACT. The Operating Agency must comply with all applicable
standards, orders, or requirements issued under section 306 of the Clean Air Act (42
U.S.C. 1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive
Order 11738, and Environmental Protection Agency regulations (40 CFR part 15).
These terms shall apply to construction contracts in excess of$100,000 awarded to
the Operating Agency, as well as contracts awarded to subcontractors and
consultants.
68. ENERGY POLICY AND CONSERVATION ACT. The Operating Agency must
comply with mandatory standards and policies related to energy efficiency which are
contained in the State Energy Conservation Plan issued in compliance with the
Energy Policy and Conservation Act(Pub.L.94A 163, Stat.871).
69. ENTIRE CONTRACT. This Contract with attachments and any and all CDBG
Bulletins, which the County may issue from time to time following the date of
execution, constitute the entire understanding and agreement of the parties.
Revised 04/12 29
IN WITNESS WHEREOF,the Board of Supervisors of the County of Los Angeles has
caused this Contract to be subscribed by the Executive Director of the Community Development
Commission, and the Operating Agency has subscribed the same through its authorized officers,
on the day, month and year first above written.
COUNTY OF LOS ANGELES City of Rancho Palos Verdes
DigitaNy signed by Carolyn Lehr
f j ... Carolyn Lehr � ti Rancho
7 emar=l�yrP+�.c«n.c=uS
B Y. B Y/TITLE. Date:2012.06.12 11:42:43-0700'
l
SEAN ROGAN,
Executive Director
Community Development Commission
of the County of Los Angeles
APPROVED AS TO FORM: APPROVED AS TO PROGRAM:
JOHN F. KRATTLI SEAN ROGAN,
County Counsel Executive Director
Community Development Commission
of the County of Los Angeles
BY: 114.317"6.er
BY: L/12-
Deputy irector, CDBG
Revised 5/09
EXHIBIT B
INSURANCE REQUIREMENTS FOR
OPERATING AGENCY
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes, CA 90275-5351
In order for the Operating Agency to meet its obligations to the community and insure its
continuance, the Community Development Commission of the County of Los Angeles ("CDC"),
the Housing Authority of the County of Los Angeles ("HA"), and the County of Los Angeles
("County")require that prior to the execution of this contract or as otherwise set forth herein, the
Operating Agency must provide evidence that all insurance requirements have been met.
Without limiting Operating Agency's indemnifications as set in the attached contract, Operating
Agency shall procure and maintain, at Operating Agency's sole expense, for the duration of this
contract, the insurance policies described herein. Such insurance shall be secured from carriers
admitted in California, or authorized to do business in California. Carriers shall be in good
standing with the California Secretary of State's Office and the California Department of
Insurance. Such carriers must be admitted and approved by the California Department of
Insurance or must be included on the California Department of Insurance List of Eligible Surplus
Line Suppliers (hereinafter "LESLI"). Carriers must have a minimum rating of or equivalent to
A: VIII in Best's Insurance Guide. Operating Agency shall, prior to the execution of this
contract, deliver to the CDC Certificates of Insurance with original endorsements evidencing
the insurance coverage required by this contract. The certificates and endorsements shall be
signed by a person authorized by the insurers to bind coverage on its behalf. Operating Agency
shall provided the Commission with certificates of insurance and applicable endorsements each
year during the term of this contract to evidence its annual compliance with the insurance
requirements set forth herein. The CDC reserves the right to require complete certified copies of
all policies at any time. Said insurance shall be in a form acceptable to the CDC and may
provide for such deductibles as may be acceptable to the CDC.
Any self-insurance program and self-insured retention must be separately approved by the CDC. In
the event such insurance does provide for deductibles or self-insurance, Operating Agency
agrees that it will defend, indemnify and hold harmless the CDC, County, and HA, and each of
their elected and appointed officers, officials, representatives, employees, and agents in the same
manner as they would have been defended, indemnified and held harmless if full coverage under
any applicable policy had been in effect. Each policy shall be endorsed to stipulate that the CDC
be given at least thirty (30) days' written notice in advance of any cancellation or any reduction
in limit(s) for any policy of insurance required herein. Operating Agency shall give the CDC
immediate notice of any insurance claim or loss which may be covered by insurance. Operating
Agency represents and warrants that the insurance coverage required herein will also be provided
by any entities with which Operating Agency contracts, as detailed below. All Certificates of
Insurance and additional insured endorsements shall carry the following identifier: Agency
Name and Address.
The insurance policies set forth herein shall be primary insurance and non contributory with
City Insurance Requirements
Page 1
Revised 2/2012
respect to the CDC. The insurance policies shall contain a waiver of subrogation for the benefit
of the CDC. Failure on the part of Operating Agency, and/or any entities with which Operating
Agency contracts, to procure or maintain the insurance coverage required herein may, upon the
CDC's sole discretion, constitute a material breach of this contract pursuant to which the CDC
may immediately terminate this contract and exercise all other rights and remedies set forth
herein, at its sole and absolute discretion, and without waiving such default or limiting the rights
or remedies of the CDC, procure or renew such insurance and pay any and all premiums in
connection therewith and all monies so paid by the CDC shall be immediately repaid by the
Operating Agency to the CDC upon demand including interest thereon at the default rate. In the
event of such a breach, the CDC shall have the right, at its sole election, to participate in and
control any insurance claim, adjustment, or dispute with the insurance carrier. Operating
Agency's failure to assert or delay in asserting any claim shall not diminish or impair the CDC's
rights against the Operating Agency or the insurance carrier.
When Operating Agency, or any entity with which Operating Agency contracts, is naming the CDC
as an additional insured on any of the insurance policies set forth herein,then the additional insured
endorsement shall contain language similar to the language contained in ISO form CG 20 10 11 85.
In the alternative and in CDC's sole and absolute discretion, it may accept both CG 20 10 10 01 and
CG 20 37 10 01 in place of CG 20 10 11 85.
No funds will be advanced, reimbursed, or disbursed until all of the insurance requirements set
forth herein have been met. There absolutely will be no reimbursement of costs for the default
and cure periods.
Exceptions to the insurance requirements as set forth herein, will be granted only on a case by
case basis. Prior to the Operating Agency receiving funds, the CDC or the HA will review the
activities of the Operating Agency. Those Operating Agencies whose activities present no
meaningful exposure to the CDC, the HA and/or the County (as determined solely by the CDC
Risk Management Administrator) may have certain insurance coverages waived by the CDC
Risk Management Administrator upon the written request of the Operating Agency and approval
from the CDC Risk Management Administrator.
The following insurance policies shall be obtained and maintained by Operating Agency, and
any entity with which the Operating Agency contract, for the duration of this contact, unless set
forth otherwise herein:
A. GENERAL LIABILITY INSURANCE (written on ISO policy form CG 00 01
or it's equivalent) including coverage for personal injury, death,property damage and contractual
liability with limits of not less than the following:
General Aggregate $2,000,000
Products/Completed Operations Aggregate $2,000,000
Personal and Advertising Injury $1,000,000
Each Occurrence $1,000,000
The CDC, HA, and County, and each of their elected and appointed officers, officials,
representatives, employees, and agents (hereinafter collectively referred to as the "Covered
City Insurance Requirements
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Revised 2/2012
Entities"), shall be covered as additional insureds on such policy. If the services provided in
relation to this Agreement relate in any way to minors, then this policy shall also include an
endorsement for abuse and sexual molestation.
B. WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY insurance
providing workers' compensation benefits, as required by the Labor Code of the State of
California. This must include a waiver of subrogation in favor of Covered Entities. In all cases,
the above insurance shall include Employer's Liability coverage with limits of not less than the
following:
Each Accident $1,000,000
Disease-Policy Limit $1,000,000
Disease-Each Employee $1,000,000
C. CRIME COVERAGE FOR EMPLOYEE THEFT; FIDELITY BOND: If the
aggregate budgeted amount for the current fiscal year allotted for the Operating Agency is less
than fifty thousand dollars ($50,000), the Operating Agency shall not be required to comply with
this section C. If the aggregate budgeted amount for the current fiscal year allotted for the
Operating Agency is greater than or equal to fifty thousand dollars ($50,000), then Operating
Agency shall be required to comply with the following requirements in this section C:
Operating Agency shall procure and maintain, at its sole cost and expense, a fidelity bond
covering each employee of Operating Agency, whether or not they are compensated. The
fidelity bond may be either a primary commercial blanket bond or a blanket position bond
written by an insurer licensed by the California Insurance Commissioner. Borrower shall
provide thirty (30) days notice to the CDC prior to cancellation of the fidelity bond. The fidelity
bond shall provide a minimum coverage equivalent to the lesser of one million dollars
($1,000,000) or fifty percent (50%) of the aggregate budgeted amount for the current fiscal year
for the Operating Agency, as set forth in the cumulative Exhibit A budgets. If the Operating
Agency experiences an increase in funding during the fiscal year, the crime coverage
requirement will be re-assessed and additional coverage may be required in the sole and absolute
discretion of the CDC. The Operating Agency shall maintain the fidelity bond for the duration
of this contract. The fidelity bond may contain a provision for a deductible amount from any loss
which, except for such deductible provision, would be recoverable from the insurer. A
deductible provision shall not be in excess of ten percent (10%) of the required minimum bond
coverage. Any deviation from this fidelity bond section shall require specific written approval by
the CDC.
D. AUTOMOBILE LIABILITY INSURANCE (written on ISO policy form CA
00 01 or its equivalent) with a limit of liability of not less than one million dollars ($1,000,000)
for each incident. Such insurance shall include coverage of all "owned", "hired", and "non-
owned" vehicles, or coverage for "any auto." The Covered Entities shall be covered as
additional insureds on such policy.
City Insurance Requirements
Page 3
Revised 2/2012
E. PROFESSIONAL LIABILITY INSURANCE including coverage for personal
injury, death, property damage, and contractual liability in an amount not less than One Million
Dollars ($1,000,000) for each occurrence and Two Million Dollars ($2,000,000) general aggregate.
Said insurance shall be maintained for the statutory period during which the professional maybe
exposed to liability. The purpose of this insurance is to cover all claims for professional services
being provided by Operating Agency and any entity with which Operating Agency contracts,which
includes, but is not limited to, services provided by the following professionals: physicians,
physician's assistants, nurses, psychiatrists, psychologists, pharmacists, social workers, architects,
engineers, and financial counselors. If Operating Agency is not providing professional services,
then it is the responsibility of Operating Agency to obtain separate written approval from CDC to
eliminate this professional liability insurance requirement as to Operating Agency.
F. POLLUTION LIABILITY INSURANCE including coverage for bodily injury,
property damage, and environmental damage with limits of not less than the following:
General Aggregate $2,000,000
Completed Operations $ 2,000,000
Each Occurrence $ 1,000,000
Said policy shall also include, but not be limited to: coverage for any and all remediation costs,
including, but not limited to, restoration costs, and coverage for the removal, repair, handling,
and disposal of asbestos and/or lead containing materials. The Covered Entities shall be covered
as additional insureds on the pollution liability insurance policy. If the general liability insurance
policy and/or the pollution liability insurance policy is written on a claims-made form, then said
policy or policies shall also comply with all of the following requirements:
(i) The retroactive date must be shown on the policy and must be before the date
of this contract or the beginning of work or services that are the subject of this contract;
(ii) Insurance must be maintained and evidence of insurance must be provided for
the duration of this Contract or for five (5)years after completion of the work or services that are
the subject of this contract,whichever is greater;
(iii) If coverage is canceled or non-renewed, and not replaced with another
claims-made policy form with a retroactive date prior to the effective date of this contract, then
the Operating Agency must purchase an extended period coverage for a minimum of five (5)
years after completion of the work or services that are the subject of this contract;
(iv) A copy of the claims reporting requirements must be submitted to the CDC
for review; and
(v) If the work or services that are the subject of this contract involve lead based
paint or asbestos identification/remediation, then the Operating Agency's Pollution Liability shall
not contain any lead-based paint or asbestos exclusions.
City Insurance Requirements
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Revised 2/2012
Operating Agency agrees it will require that, at a minimum, all of the above mentioned insurance
requirements, with the exception of the Crime Coverage, are incorporated in its contract with any
entity with which it contracts in relation to this contract, or in relation to the property or project that
is the subject of this contract.
The CDC reserves the right, at its sole and absolute discretion, to amend at anytime the
provisions of this Exhibit B.
City Insurance Requirements
Page 5
Revised 2/2012