LAC CDBG Contract No. 70741 COUNTY OF LOS ANGELES
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
REIMBURSABLE CONTRACT
WITH PARTICIPATING CITY
CONTRACT NUMBER: 7(1741
THIS REIMBURSABLE CONTRACT (Contract) is made and entered into this 1st day
of July, 2015, 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 U.S. 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 the County and
Operating Agency to enter into this Contract in furtherance of the Program; and
WHEREAS, the 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 Commission Housing and Community
Development Consolidated Plan (HCDCP), adopted by the County Board of
Supervisors on May 28, 2013, or any amendment or successor thereto, which is
incorporated herein by this reference.
3. AGREEMENT TO IMPLEMENT. The 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. The Operating Agency shall commence services no
sooner than the date first written above, and shall complete same by no later than June
30, 2016. 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, the County shall reimburse the Operating Agency an amount not
to exceed One Hundred Forty-One Thousand One Hundred Ninety-Six Dollars and
Zero Cents ($141,196.00), 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 2 CFR Part 200 Subpart D 200.307 and 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. The
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.
The 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 the
Operating Agency after the expiration or other termination of this Contract. Should
the 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 the
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
49 of this Contract.
7. EXPENDITURE STANDARDS. The Operating Agency shall not have more than
150% of its allocation for the current year unexpended after March 31 of each
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program year. An Qperating Agency's failure to meet this standard constitutes
noncompliance with the Performance Policy and may result in reductions to the
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; 2 CFR Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards;
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.
As required by 2 CFR Part 200 Section 200.414, the Operating Agency may charge
an indirect cost rate to this contract that is based on:
a. The negotiated indirect rate approved by its cognizant agency for the Fiscal
Year applicable to this contract; or
b. If the Operating Agency receives less than $35 Million in Federal funding and
has never received a negotiated indirect cost rate from a Federal Agency, a de
minimis rate of 10% of Modified Total Direct Costs (MTDC), as defined in 2
CFR Part 200.68.
The Catalogue of Federal Domestic Assistance (CFDA) number assigned to the
Community Development Block Grant Program is 14.218 and the Federal Award
Identification Number (FAIN) assigned to the County is B-15-UC-06-0505. The
Federal Award date is effective July 1, 2015, and is authorized upon signature of the
designated HUD Official.
The Operating Agency is required by the County to register and maintain an active
Unique Entity Identifier (also known as the Data Universal Numbering System
(DUNS) number) in order to apply for, receive, implement, and report on a Federally-
funded program. Furthermore, the County certifies that it has received and maintains
an active Unique Entity Identifier number for each Agency.
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The Operating Agency shall comply with all applicable uniform administrative
requirements. The Operating Agency shall carry out each activity in compliance with
all applicable Federal laws and regulations described in 24 CFR Part 570 Subparts J
and K, and 2 CFR Part 200, except that:
a. The Operating Agency does not assume the County environmental
responsibilities described in 24 CFR Section 570.604, and 24 CFR Part 58.1;
and;
b. The Operating Agency does not assume the County's responsibility for
initiating the review process under Executive Order 12372.
The 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-j 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 2
CFR, Part 200.
a. The 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. The 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
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 be subjected to discrimination under this Contract on the basis
of age or with respect to an otherwise qualified disability.
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.
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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. The Operating Agency shall comply with Executive Order 11246 of
September 24, 1965, titled, Equal Employment Opportunity, later
amended by Executive Order 11375 on October 13, 1967 and
supplemented in Department of Labor Guidelines (41 CFR Part 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 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.
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v. The Qperating 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 that 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 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
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(GROW) Program who meet the Contractor's minimum qualifications for the
open position. The Operating Agency shall contact the County's GAIN
Program at (626) 927-2704 and the GROW Program at (562) 908-6858 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. The Operating Agency and each County lobbyist or County lobbyist firm, as
defined in Los Angeles County Code Chapter 2.160 (County Ordinance 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 Federally-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.
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d. If any funds other than Federally 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.
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 the planned CDBG Program has been
implemented and measurable goals achieved effectiveness of the program
management, and impact of the program.
The 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.
The Operating Agency agrees to submit all data that are necessary to complete the
Consolidated Annual Performance and Evaluation Report (CAPER) and monitor
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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 the Operating Agency to comply with the requirements of this Section shall
constitute a material breach of the 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 the Operating Agency to comply with the requirements of this Section shall
constitute a material breach of this Contract upon which the Commission, through its
Executive Director may cancel, terminate or suspend this Contract.
13. AUDIT EXCEPTIONS. The Operating Agency agrees that in the event that the
program established hereunder is subject to audit exceptions by appropriate audit
agencies, it shall be responsible for complying with such exceptions and paying the
County the full amount of the County's liability to the funding agency resulting from
such audit exceptions.
14. CONFIDENTIALITY OF REPORTS. The 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. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT, AND
ACCIDENT PREVENTION. The Operating Agency shall comply with the Contract
Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable,
contracts awarded in excess of$100,000 that involve the employment of mechanics
or laborers must include a provision in compliance with 40 U.S.C. 3702 and 3704, as
supplemented by the Department of Labor Regulations (29 CFR Part 5).
The Operating Agency shall also 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.
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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 provisions 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. The Operating Agency agrees to prepare and submit
financial, program progress, monitoring, evaluation, or other reports required by the
County. The Operating Agency shall maintain and permit onsite inspections of such
property, personnel, financial, and other records and accounts as are considered
necessary by the County to assure proper accounting for all Contract funds during the
term of this Contract and for a total of five (5) years thereafter. The 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 subjected 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
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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 60 days,
upon three (3) days' notice to the 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 the County to satisfy such expenditures or legally binding commitments.
23. PROGRAM INCOME. Program Income shall be returned monthly for 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 2 CFR, Part
200, Subpart D 200.307 and 24 CFR 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:
a. Are specifically requested by the Operating Agency;
b. Will not change the project goals or scope of services;
c. Are in the best interests of the County and the Operating Agency in
performing the scope of services under this Contract;
d. Do not alter the total amount of compensation under this Contract; and
e. 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, the Operating Agency shall provide proof of such other funding upon
request. The County shall not pay for any costs incurred by the 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
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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.
The 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 non-program obligations, or as loans for non-program activities.
Separate financial records shall be kept for such funding source(s) and program.
28. DISALLOWED COSTS. If the Operating Agency has failed to return unexpended
funds or funds spent for disallowed costs related to any CDBG contract it has with the
County, the County may withhold and offset payments to be made to the Operating
Agency under this Contract.
29. ASSIGNMENT. The Operating Agency may not assign or subcontract any portion of
this Contract without the express written consent of the County. Any attempt by the
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 2 CFR Part 200 Subpart D Sections 200.318-200.326. 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
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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 Operating Agency shall address administrative, contractual, or legal remedies for
all contracts in instances where subcontractors violate or breach contract terms. The
Operating Agency must provide sanctions and penalties as appropriate.
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.
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 the County no more than (60)
calendar days from the expiration date of this Contract.
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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
Community Development Division—Grants Management Unit
700 W. Main Street
Alhambra, California 91801
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 CDBG funds in excess of$25,000 shall be either:
a. 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
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
b. 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 a. 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
Revised 5/15 14
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:
a. 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
b. 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. The Operating Agency agrees to provide a drug-free
workplace by:
a. 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;
b. Establishing an ongoing drug-free awareness program to inform employees about:
i. The dangers of drug abuse in the workplace;
ii. The Operating Agency's policy of maintaining a drug-free workplace;
iii. Any available drug counseling, rehabilitation, and employee assistance
programs; and
iv. The penalties that may be imposed upon employees for drug abuse violations
occurring in the workplace;
c. 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 a of this Section
36;
d. Notifying the employee in the statement required by paragraph a of this Section
36 that, as a condition of employment under the grant, the employee will -
i. Abide by the terms of the statement; and
Revised 5/15 15
ii. 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 (5) calendar
days after such conviction;
e. Notifying the County in writing, within ten (10) calendar days after receiving
notice under subparagraph d.(ii) 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;
f. Taking one of the following actions, within 30 calendar days of receiving notice
under subparagraph d.(ii),with respect to any employee who is so convicted-
i. 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
ii. Requiring such an 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; and
g. Making a good faith effort to continue to maintain a drug-free workplace through
implementation of paragraphs a, b, c, d, e and f.
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.
The Operating Agency must adopt and make public a Residential Antidisplacement
and Relocation Assistance Plan as part of its administrative requirements to HUD.
Before the 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; 570.496 (a);
570.606 (c); and 570.702 (f).
Revised 5/15 16
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 the Operating Agency for
inspection and copying upon request, if the 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.
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, 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
Revised 5/15 17
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).
39. COUNTY'S QUALITY ASSURANCE PLAN. The County will evaluate the
Operating Agency's performance under this Contract on not less than an annual basis.
Such evaluation will include assessing the Operating Agency's compliance with all
Contract terms and performance standards. The Operating Agency's deficiencies
which the 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 the Operating Agency. If improvement does not
occur consistent with the corrective measure, the 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 the Operating Agency as it could pursue in the event of default
by the Operating Agency.
The 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.
Revised 5/15 18
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 the Operating Agency with respect to its activities
and obligations hereunder. Without limiting the 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 the Operating
Agency to procure or maintain required insurance, pursuant to Exhibit B shall
constitute a material breach of the Contract under which the 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 the County shall be repaid by the Operating Agency to the County upon demand
or the County may offset the cost of the premiums against any monies due to the
Operating Agency from the County.
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. The 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 the Public
Agencies.
In the event that the 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, the Operating Agency agrees to indemnify, defend, and hold
harmless the 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 the Operating
Agency. The Operating Agency shall not be required to indemnify, defend, and hold
harmless the Public Agencies from any Liabilities that arise from the active
negligence, sole negligence, or willful misconduct of the Public Agencies, Public
Agencies' agents, servants, or independent contractors who are directly responsible to
the Public Agencies.
Revised 5/15 19
In the event that the 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"), the Operating Agency agrees that language substantially equivalent to the
following shall be incorporated in its contract with the Construction Entity in favor of
the Public Agencies: The Construction Entity agrees to indemnify, defend, and hold
harmless the Public Agencies from and against any and all liabilities, demands,
damages, claims, causes of action, fees (including reasonable attorneys' fees, expert
witness fees, and defense costs), 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 the Construction Entity, its employees, representatives, consultants,
subcontractors, agents, or any other entity for which the Construction Entity is
responsible. The Construction Entity shall not be required to indemnify, defend, and
hold harmless the Public Agencies from any Liabilities that arise from the active
negligence, sole negligence, or willful misconduct of the Public Agencies, the Public
Agencies' agents, servants, or independent contractors who are directly responsible to
the 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.
In the event that the Operating Agency provides design professional services to a
project related in any way to this Contract, the Operating Agency agrees to
indemnify, defend, and hold harmless the 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 the Operating Agency.
In the event that the Operating Agency contracts with another entity (hereinafter
"Design Professional Entity") for design professional services to be provided to a
project related in any way to this Contract (hereinafter referred to as "Operating
Agency-Design Professional Contract"), the Operating Agency agrees that language
substantially equivalent to the following shall be incorporated in the Operating
Agency's-Design Professional Contract in favor of the Public Agencies, if such
contract is entered into subsequent to the execution date of this Contract: The Design
Professional Entity agrees to indemnify, defend, and hold harmless the Public
Agencies from and against any and all liability, demands, damages, claims, causes of
action, fees (including reasonable attorneys' fees, expert witness fees, and defense
costs), 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 the
Design Professional Entity, its employees, representatives, consultants,
subcontractors, agents, or any other entity for which the 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.
Revised 5/15 20
The 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. The
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. The 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
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 (5) 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 (3)
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 (5) days, upon receipt of said written notice of deficiency, the
Executive Director of the Commission shall have the power to suspend or
terminate the operations of the Operating Agency in whole or in part.
Revised 5/15 21
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 the Operating
Agency. In the event of such termination, the 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 a termination.
47. REVENUE DISCLOSURE REQUIREMENT. Upon request, the Operating Agency
shall file with the County a written statement listing all revenue received, or expected
to be received, by the Operating Agency from all funding sources applied for, or
expected to be applied for, to offset, in whole or in part, any of the costs incurred by
the Operating Agency in conducting current or prospective projects or business
activities, including, but not necessarily limited to, the project or business activity
which is the subject of this Contract. Such statement shall reflect the name and a
description of such business activity, the dollar amount of funding provided, or to be
provided, by each and every funding source for each such project or business activity,
and the full name and address of each funding source. The Operating Agency shall
make available for inspection and audit to the County's representatives, upon request,
at any time during the duration of this Contract, and for a period of five (5) years
thereafter, all of its books and records relating to the operation of each project or
business activity which is funded in whole or in part with all funding sources
including the project(s) funded under this Contract, whether or not such monies are
received through the County. All such books and records shall be maintained by the
Operating Agency at a location in Los Angeles County.
Failure of the Operating Agency to comply with the requirements of this Section of
this Contract shall constitute a material breach of this Contract upon which the
County may immediately cancel, terminate, or suspend this Contract..
48. 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, 2 CFR Part 200, Subpart B, 200.112,
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 48, 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 48, 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
CDBO-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
Revised 5/15 22
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 48, 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
percent (1%) 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.
49. FINANCIAL CLOSE OUT PERIOD. The Operating Agency agrees to comply and
complete all necessary financial close out procedures required by the County and,
within a period of not more than 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.
50.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 that the Contract is terminated, the
County reserves the right to determine the final disposition of said nonexpendable
property acquired for this project with CDBG funds, including funds derived there
Revised 5/15 23
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 Federal Award Identification Number (FAIN), which is B-
15-UC-06-0505, 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).
51. PURCHASE OR LEASE OF NONEXPENDABLE PROPERTY. The Operating
Agency may use its own documented procurement procedures which reflect
applicable State and local laws and regulations, provided that procurement procedures
conform to applicable Federal law and the standards identified in 2 CFR Part 200,
Subpart D 200.318-200.326.
All procurement transactions must be conducted in a manner providing for full and
open competition consistent with the standards of 2 CFR Part 200 Section 200.319
and Section 200.320, Methods of Procurement to be followed. Whenever possible,
the Operating Agency must take all necessary affirmative steps to assure that minority
businesses,women's business enterprises, and labor surplus area firms are used.
Revised 5/15 24
52. 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.
53. 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.
54. 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 the
construction/rehabilitation activities, but in no event later than April 1St of the current
fiscal year.
55. 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,
Revised 5/15 25
which generally will not exceed five (5) years, but may exceed five (5)years or be
permanent if warranted by circumstances, and terminate any or all existing
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 and abide by 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
Contractor 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 (5) years, that
Contractor may, after the debarment has been in effect for at least five (5) 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)
Revised 5/15 26
elimination of the grounds for which the debarment was imposed; (2) a bona fide
change in ownership or management; (3) material evidence discovered after the
debarment was imposed; or (4) any other reason that is in the best interest 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 (5) years; (2) the debarment has been in effect for at least five (5) 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 the debarment period or termination of the 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.
56. COPELAND "ANTI-KICKBACK" ACT. The Operating Agency shall comply with
the Copeland "Anti-Kickback" Act (18 U.S.C. 3145) 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
57. DAVIS-BACON ACT. The Operating Agency shall comply with the Davis-Bacon
Act as amended, (40 U.S.C. 3141-3148), and 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.
58. 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 5/15 27
59. OPERATING AGENCY'S WARRANTY OF ADHERENCE TO COUNTY'S
CHILD SUPPORT COMPLIANCE PROGRAM. The Operating Agency
acknowledges that the County has established a goal of ensuring that all individuals
who benefit financially from the 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 the County and its taxpayers.
As required by the County's Child Support Compliance Program (County Code
Chapter 2.200) and without limiting the Operating Agency's duty under this Contract
to comply with all applicable provisions of the law, the 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).
60. TERMINATION FOR BREACH OF WARRANTY TO MAINTAIN
COMPLIANCE WITH COUNTY'S CHILD SUPPORT COMPLIANCE
PROGRAM. Failure of the Operating Agency to maintain compliance with the
requirements set forth in Section 59, OPERATING AGENCY'S WARRANTY OF
ADHERENCE TQ COUNTY'S CHILD SUPPORT COMPLIANCE PROGRAM
shall constitute a default by the Operating Agency under this Contract. Without
limiting the rights and remedies available to the County under any other provision of
this Contract, failure to cure such default within 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.
61. 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 the County's policy to voluntarily post a list entitled L.A's Most
Wanted: Delinquent Parents poster in a prominent position at the Operating Agency's
place of business. The CSSD will supply the Operating Agency with the poster to be
used.
62. EMPLOYEES OF OPERATING AGENCY. Workers' Compensation: The
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. The 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 5/15 28
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.
63.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 www.babysafela.org under the public information link for printing
purposes.
64. 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.
65. PHOTOGRAPHS, FOOTAGE, AND OTHER MEDIA MATERIALS. The
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 the County's use
of said photographs, videos, DVD's, footage, magazines, and other media materials.
66. OPERATING AGENCY'S WARRANTY OF COMPLIANCE WITH THE
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
Revised 5/15 29
qualifies 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.
67. TERMINATION FOR BREACH OF WARRANTY TO MAINTAIN
COMPLIANCE WITH THE COUNTY'S DEFAULTED PROPERTY TAX
REDUCTION PROGRAM. Failure of the Operating Agency to maintain compliance
with the requirements set forth in Section 66, "OPERATING AGENCY'S
WARRANTY OF COMPLIANCE WITH THE 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 ten (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.
68. 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.
69. 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).
70. 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 5/15 30
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
Michael Digitally
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BY: r BY/TITLE:Throne oa,° 5°��," c=
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SEAN ROGAN,
Executive Director
Community Development Commission
of the County of Los Angeles
APPROVED AS TO FORM: APPROVED AS TO PROGRAM:
MARY C. WICKHAM SEAN ROGAN,
Interim County Counsel Executive Director
Community Development Commission
of the County of Los Angeles
BY:F PL a2_ f„, rrv..c= BY:
S;(1' 150-4it,
Deputy Director, Community Development Division
Revised 5/15
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, the Operating Agency must
provide evidence that all insurance requirements have been met. Without limiting the Operating
Agency's duties to indemnify and defend as provided in the attached contract, the Operating
Agency shall procure and maintain, at the Operating Agency's sole expense, 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 Approved Surplus Line Insurers (hereinafter
"LASLI"). Carriers must have a minimum rating of or equivalent to A: VIII in Best's Insurance
Guide. The 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 The Operating Agency shall provide
the CDC 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, the 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. The Operating Agency shall give the CDC
immediate notice of any insurance claim or loss which may be covered by the insurance policy.
The Operating Agency represents and warrants that the insurance coverage required herein will
also be required and provided by any entities with which the Operating Agency contracts, as
detailed below. All Certificates of Insurance and additional insured endorsements shall carry
the following information: Agency Name, Address, and Project Name and Number.
Revised 3.2014
The insurance policies set forth herein shall be the primary and non-contributory insurance with
respect to the CDC. The insurance policies shall contain a waiver of subrogation for the benefit
of the CDC. Failure on the part of the Operating Agency, and/or any entities with which the
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. The 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 the Operating Agency, or any entity with which the Operating Agency contracts, is
naming the CDC, HA, and/or the County 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 the 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.
Any failure to maintain the insurance required herein, may be deemed, at the sole discretion of
the CDC, a material breach of this contract. No funds will be advanced, reimbursed, or disbursed
until all of the above mentioned insurance requirements 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 CDC
Risk Management Administrator's approval of such.
The following insurance policies shall be obtained and maintained by the Operating Agency, and
any entity with which the Operating Agency contracts, for the duration of this contact, unless set
forth otherwise herein:
A. GENERAL LIABILITY INSURANCE: (written on ISO policy form CG 00 01
or its equivalent) Including coverage for bodily injury, personal injury, death, property damage
and contractual liability with limits of not less than the following:
General Aggregate $2,000,000
Revised 3.2014
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
Entities"), shall be covered as additional insureds on such policy.
A.1 Additional Insured Endorsement Form: In addition, the Qperating Agency must
provide evidence of or a separate Additional Insured Endorsement form, containing the
policy number and identifying the Covered Entities as additional insureds for the General
Liability insurance policy.
A.2 Abuse and Sexual Molestation Endorsement for Minors: 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. 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
Commencing upon Operating Agency's annual renewal of its workers' compensation and
employer's liability coverage, and annually thereafter, Operating Agency must include a waiver
of subrogation in favor of the Covered Entities with regard to the workers' compensation and
employer's liability coverage.
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 the
Operating Agency shall be required to comply with the following requirements in this section C:
The Operating Agency shall procure and maintain, at its sole cost and expense, a fidelity
bond covering each employee of the 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. The Operating Agency
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 50% of the cumulative Exhibit A
project budget approved for the current fiscal year, not to exceed One Million Dollars
($1,000,000). If the Operating Agency experiences an increase in funding during the fiscal year,
the crime coverage requirement will be reassessed and additional coverage may be required in
Revised 3.2014
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. The CDC reserves the right, at its sole and absolute discretion, to
amend at any time the requirements contained in this section C.
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."
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 (Two Million Dollars ($2,000,000) general aggregate).
The said insurance shall be maintained for the statutory period during which the professional
may be exposed to liability. The purpose of this insurance is to cover all claims for professional
services being provided by the Operating Agency, 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 the
Operating Agency is not providing professional services, then it is the responsibility of the
Operating Agency to obtain separate written approval from the CDC to eliminate this
professional liability insurance requirement. The Operating Agency shall require that the
aforementioned professional liability insurance coverage language be incorporated into its
contract with any other entity with which it contracts for professional services.
F. PROPERTY INSURANCE: If the Operating Agency will have possession of, rent,
lease, or be loaned CDC-owned real or nonexpendable personal property, the Operating Agency
shall be required to insure the property for replacement cost under the Special Form Coverage.
The Covered Entities shall be named on a Lenders Payable Endorsement. Evidence of this
endorsement shall be provided to the CDC, prior to execution of this contract, and a copy shall
also be retained in the Operating Agency file. Coverage shall be maintained for the duration of
this contract.
The Operating Agency agrees that it will require, 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.
If circumstances or activities change during the fiscal year for any of the projects, and the
Operating Agency received a waiver for any insurance coverage set for the herein, then, in the sole
and absolute discretion of the CDC, the granting of the waiver for any of the insurance coverage
listed in the preceding paragraphs of this document may be revoked and the insurance coverage
requirements reinstated. Operating Agency shall immediately notify CDC of any circumstances or
Revised 3.2014
activity changes that may affect the insurance requirements, or any waivers of such, as set forth
herein. If any such requirements are revoked and/or reinstated, then Operating Agency must
immediately (but in any event, within 30 days) provide evidence that it is in compliance with all
insurance requirements, whether set forth herein, or otherwise reinstated. Operating Agency's
failure to comply with the CDC's election to revoke and/or reinstate any insurance requirements
shall be deemed a material breach of this contract.
The CDC reserves the right, at its sole and absolute discretion, to amend at anytime the
provisions of this Exhibit B.
Revised 3.2014