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HomeMy WebLinkAboutCC AG PKT 2010-07-12 #OAGENDA STAFF REPORT DATE: July 12, 2010 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Mark H. Persico, AICP, Director of Development Services SUBJECT: CONTRACT WITH ORANGE COUNTY COMMUNITY RESOURCES (OCCR) FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDED PROGRAM OF BATHROOM ACCESSIBILITY IMPROVEMENTS IN LEISURE WORLD (PROGRAM YEAR 2010 - 2011) (CONTRACT NO. KC10918) SUMMARY OF REQUEST: Adopt Resolution No. 6029 approving a one year contract (Program Year 2010 — 2011) between the City and Orange County Community Resources (OCCR) for the Bathroom Accessibility Improvement Program at Leisure World. BACKGROUND AND FACTS: The City receives a $200,000 grant from Orange County Community Resources (OCCR) to complete bathroom accessibility improvements in Leisure World for qualifying residents. This is the second three year grant cycle the City has been awarded by OCCR. This is would be the third and final year of the grant. Based upon the success of the program, however, staff will be applying for another grant in the next funding cycle. The table below shows activity over the last five years: CDBG Funded Leisure World Program Fiscal Year Units Improved FY 05 — 06 71 FY 06 — 07 96 FY 07 — 08 84 FY 08 — 09 80 FY 09 — 10 86 Total 417 Agenda Item 0 Page 2 There are no other changes in the contract terms or Leisure World program from the previous two years. FINANCIAL IMPACT: There are no general fund fiscal impacts created by this contract. (See item "G" - Budget Amendment 11- 01 -02) RECOMMENDATION: It is recommended that the City Council adopt Resolution No. 6029 approving a contract with Orange County Community Resources (OCCR) for Program Year 2010 — 2011 (Contract No. KC10918). SUBMITTED BY: Mark H. Persico, AICP Director of Development Services NOTED AND APPROVED: David CarnVany, City Manager Attachment A. Resolution No. 6029 B. Contract Extension (KC10918) RESOLUTION NUMBER 6029 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA APPROVING THE CITY'S PARTICIPATION IN THE HOUSING AND COMMUNITY DEVELOPMENT PROGRAM OF THE COUNTY OF ORANGE, PROGRAM YEAR 2010 -2011 AND AUTHORIZING EXECUTION OF CONTRACT NO. KC10918 (LEISURE WORLD BATHROOM ACCESSIBILITY PROGRAM) WHEREAS, it is the intent of the City of Seal Beach to participate with the County of Orange for a grant authorized under the Housing and Community Development Act of 1974; and WHEREAS, the Housing and Community Development Act of 1974 authorizes cities under 50,000 in population to enter into cooperative agreements with the county in which they are located for the purpose of undertaking essential community development activities; and WHEREAS, the Federal government requires participating cities to provide certifications that the funds will be obtained and utilized pursuant to Federal law and policy; and WHEREAS, the City Council on December 12, 2005 conducted a public hearing and approved the following project to be included in the City's grant proposal: ❑ Leisure World ADA Housing Rehabilitation Program: $200,000 Leisure World Census Tracts 995.09 and 995.10 were originally approved for inclusion in a proposed rehabilitation assistance program with CDBG for fiscal years 2005 -2006 through 2007 -2008 in the amount of $200,000 per fiscal year to serve an estimated 30 -35 households. The City received a second three grant cycle for fiscal years 2008 -09 through 2010 -11. This is the third and final year of the grant cycle. The requested funding level of $200,000 is consistent with the previously approved funding level by the County of Orange and is in accordance with the County guidelines; and WHEREAS, the Leisure World Bathroom Accessibility Program has been approved by the Orange County Board of Supervisor's and Contract No. KC10918 will implement this approved housing rehabilitation program for Fiscal Year 2010 -2011. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Seal Beach does hereby authorize the Mayor and the City Manager to execute all necessary contract documents, and authorizes the Director of Development Services and to take all appropriate actions to comply with all aspects of contract administration and compliance. Resolution Number 6029 PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal Beach, at a regular meeting held on the 12th day of July , 2010 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6029 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 12th day of July , 2010. City Clerk CONTRACT NO. KC10918 IDIS NO. 1918 COUNTY OF ORANGE OC COMMUNITY RESOURCES COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM HOUSING REHABILITATION - CITY PROGRAM YEAR 2010 -11 TITLE OF PROJECT: City of Seal Beach, Leisure World Bathroom Accessibility Program 570.202 (a)(1), 14A- Rehab; Single -Unit Residential CFDA No. 14.218 This agreement, hereinafter referred to as "CONTRACT ", is entered into on, BY AND BETWEEN City of Seal Beach, a municipal corporation, in the State of California, and hereinafter referred to as "SUBRECIPIENT ". AND COUNTY OF ORANGE, a political subdivision of the State of California and recognized Urban County under the Federal Housing and Community Development Act of 1974 (Public Law 93 -383), as amended, hereinafter referred to as "COUNTY ". RECITALS This CONTRACT is made with reference to the following facts, among others: WHEREAS, COUNTY has applied for and anticipates receiving funds from the United States Department of Housing and Urban Development, hereinafter referred to as "HUD ", under Title I of the Housing and Community Development Act of 1974 (Public Law 93 -383, as amended) for the purpose of funding projects meeting one of the HUD national objectives; And WHEREAS, County and Participating Cities previously entered into a Cooperation Agreement dated July 1, 2009 as amended, in which both parties agreed to cooperate in the undertaking, or assist in the undertaking, of community development and housing assistance activity; and WHEREAS, SUBRECIPIENT has submitted to COUNTY an application for funding of a housing and community development activity; and WHEREAS, COUNTY adopted its Annual Action Plan, (hereinafter referred to as "ANNUAL ACTION PLAN "), including any mid -year amendments, which sets forth the PROJECT described herein; and WHEREAS, HUD, in accordance with 24 CFR Part 570 Subpart O, 570.902, will annually review the performance of COUNTY to determine whether COUNTY has carried out it's Community Development Block Grant (CDBG) assisted activities in a timely manner and has significantly disbursed CDBG funds and met the mandated "1.5 ratio" threshold; and - 1 - CONTRACT NO. KC10918 IDIS NO. 1918 WHEREAS, COUNTY approved an allocation of $200,000.00 (Two Hundred Thousand Dollars and 00 Cents) in project funding to SUBRECIPIENT for the Fiscal Year 2010 -11; and WHEREAS, HUD has accepted and certified the ANNUAL ACTION PLAN; and WHEREAS, COUNTY engages SUBRECIPIENT to assist COUNTY in utilizing aforesaid funds. NOW, THEREFORE, the parties enter into the following: I. CONTRACT FORM This CONTRACT consists of: A. The following provisions; B. All applicable Federal Regulations, including 24 CFR 570; C. Applicable State and COUNTY laws and regulations; and, D. The attached SUBRECIPIENT SCOPE OF SERVICES, is incorporated as if fully set forth herein; and, E. The attached CHILD SUPPORT PROVISION, which is incorporated as if fully set forth herein; and, F. The attached Exhibit 1 OC COMMUNITY RESOURCES CONTRACT REIMBURSEMENT POLICY, which is incorporated as if fully set forth herein; and, G. The Grant Agreement between HUD and the County of Orange. II. DEFINITIONS For the purposes of this CONTRACT the following definitions shall apply: A. HUD: United States Department of Housing and Urban Development. B. OC COMMUNITY RESOURCES: Designated as the Lead for the development and implementation of County of Orange Urban County Program's Consolidated Plan. C. DIRECTOR: DIRECTOR of the OC Community Resources, or designee. D. PROGRAM INCOME: The gross income received by SUBRECIPIENT directly generated from the use of the subject program funds. E. CONSTRUCTION BID PACKAGE: A package of bidding documents which includes the proposal, bidding instructions, CONTRACT documents, detailed estimated costs, and plans and specifications for a construction project, all prepared in accordance with applicable Federal regulations. F. GRANTEE PERFORMANCE REPORT (GPR) INFORMATION FORM: A PROJECT activity data document provided by COUNTY to SUBRECIPIENT used to monitor and track the performance of SUBRECIPIENT. lPAC CONTRACT NO. KC10918 IDIS NO. 1918 G. OC COMMUNITY RESOURCES CONTRACT REIMBURSEMENT POLICY: A COUNTY document setting policies regarding types of documentation required to support the costs incurred and paid (including but not limited to copies of paid invoices, certified payroll registers, bank statements, etc.). H. PROJECT: Any site or sites, including buildings, and /or activities assisted with federal program funds. I. PROGRAM ADMINISTRATION: An activity relating to the general management, oversight and coordination of community development programs. Costs directly related to carrying out eligible activities are not included. J. OMB: Federal Office of Management and Budget. K. CAPER: Consolidated Annual Performance and Evaluation Report. An annual published report to HUD and the public on all housing - related activities. L. CDBG: Community Development Block Grant funds. M. EQUIPMENT: Tangible, non - expendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. N. SUBSTANTIAL AMENDMENT: The County will consider a change in project scope as a "substantial amendment" under the following circumstances: 1. A new activity not previously listed and described in the Consolidated Plan /Annual Action Plan; 2. A proposal is made to amend the description of an existing activity in such a way that the newly described purpose, scope, or beneficiaries differ significantly from the original activity's purpose, scope, or beneficiaries; or 3. An increase in the amount of Federal Community Planning Development and /or local funds allocated to an existing activity when the following apply: a. An increase in funding for a public services activity in an amount greater than 50% increase over the current funded amount. b. An increase in the funding for public facility improvements /housing rehabilitation in an amount greater than 50% increase over the current funded amount. III. CONDITIONS OF FUNDING A. County advises SUBRECIPIENT that a change in entitlement funding may result in a change in the current process utilized by COUNTY to determine funding allocations. SUBRECIPIENT acknowledges that the obligation of the COUNTY is contingent upon the availability of Federal, State or local Government funds appropriated or allocated to the COUNTY. If funding levels are significantly affected by Federal budgeting or if funds are not allocated and available for the continuance of the function performed by SUBRECIPIENT, the -3- CONTRACT NO. KC10918 IDIS NO. 1918 CONTRACT may be terminated by the COUNTY at the end of the period for which funds are available. The COUNTY shall notify SUBRECIPIENT at the earliest possible time of any service, which will or may be affected by a shortage of funds. No penalty shall accrue to the COUNTY in the event this provision is exercised and the COUNTY shall not be obligated nor liable for any damages as a result of termination under this provision of this CONTRACT, and nothing herein shall be construed as obligating the COUNTY to expend or as involving the COUNTY in any contract or other obligation for the future payment of money in excess of appropriations authorized by law. B. SUBRECIPIENTS shall allow representatives of the County of Orange, or HUD to inspect facilities, which are used in connection with the contracts, made to implement programs funded under this contract. SUBRECIPIENTS acknowledge that HUD funds are not meant to replace or supplant other sources of funding. C. SUBRECIPIENT shall maintain any applicable licenses or permits, and meet any facility code regulations required for the program(s) funded under the contract. IV. TERM A. Eligible costs related to services provided by SUBRECIPIENT must be incurred during the period beginning July 1, 2010. The PROJECT shall be completed and all funds provided through this CONTRACT shall be expended on eligible PROJECT activities prior to June 30, 2011. The term of this CONTRACT may be extended upon mutual agreement of the parties in writing in accordance with Section IV.D. below. COUNTY will reclaim any unused balance of funds for reallocation to other COUNTY approved projects. B. SUBRECIPIENT may be eligible to request additional funding up to the maximum set forth in the applicable FY 2010 -11 Annual Action Plan if SUBRECIPIENT meets or exceeds any one of the Required Expenditure Thresholds at 50 %, 70% or 80% on or prior to the milestone date established herein in Section VI.E.3. C. If additional funding is available for allocation to SUBRECIPIENT, SUBRECIPIENT and COUNTY shall first amend the Subrecipient Scope of Services component of this CONTRACT. Furthermore, SUBRECIPIENT shall demonstrate, to the satisfaction of DIRECTOR, that the required Performance Expenditure and Accomplishment Thresholds set forth herein Section VI.E. 3. and Section VIII.B., as amended, will continue to be met before such extension and additional allocation shall be granted. D. CONTRACT Extension 1. The term of this CONTRACT and the provisions herein may be extended to cover an additional time period as specified herein. 2. The date for PROJECT completion and expenditure of all funds may be extended by the DIRECTOR without further action by the BOARD for a period not to exceed WE CONTRACT NO. KC10918 IDIS NO. 1918 six (6) months from June 30, 2011. All extension approvals must be in writing and signed by the DIRECTOR. In the event of such extension, the deadline for submittal of invoices shall be forty -five (45) days after the new expiration date. 3. CONTRACT extension provisions are not applicable to PROGRAM ADMINISTRATION activities. V. AMENDMENTS A. COUNTY, through its DIRECTOR without further action by the COUNTY's Board of Supervisors (hereinafter referred to as "BOARD ") and SUBRECIPIENT may, by mutual agreement, amend and /or extend this CONTRACT and /or incorporated Subrecipient Scope of Services, at any time, up to 45 (forty-five) days prior to CONTRACT expiration, provided that the proposed action is (1) not a "Substantial Amendment" as defined Section II. N of this CONTRACT, (2) makes specific reference to this CONTRACT, (3) is executed in writing and signed by a duly authorized representative of the SUBRECIPIENT's organization. SUBRECIPIENT's written request to amend must include a revised budget for funds being extended, if that scope of work is different in scope from the originally agreed upon SUBRECIPIENT SCOPE OF SERVICES. SUBRECIPIENT must also comply with the original thresholds and milestones outlined in Section VIII.B. herein. Any proposed amendment to this CONTRACT shall be submitted to DIRECTOR, and approved by DIRECTOR in writing prior to commencement of any activity covered by said amendment. B. SUBRECIPIENT agrees that COUNTY may, at its sole discretion, amend this CONTRACT to conform with Federal, State or local governmental guidelines, policies, and available funding amounts. C. If any amendment results in a change in the funding amount, SUBRECIPIENT SCOPE OF SERVICES, threshold and milestone dates or schedule of activities to be undertaken as part of this CONTRACT, such modifications will be incorporated only by written amendment executed by DIRECTOR and SUBRECIPIENT. D. In an effort to efficiently utilize CDBG funds within timeframes required by HUD, the County will consider the reprogramming of unspent CDBG balances from completed and cancelled CDBG- funded activities to other eligible activities as a "Non- Substantial Amendment ". In the event that any of these "administrative" reprogramming actions fall under the "substantial amendment" criteria, the proposed actions are subject to the Citizen Participation process, requires formal action by the Board of Supervisors, and subsequent approval by HUD. -5- CONTRACT NO. KC10918 IDIS NO. 1918 VI. PAYMENTS A. Funds from COUNTY to SUBRECIPIENT shall be disbursed subsequent to availability of funds from HUD to COUNTY. B. Funds shall not be disbursed for any costs incurred prior to the certification by COUNTY and /or HUD of Certificate(s) of Insurance and environmental compliance, as further defined in Section VII and Section XIII of this CONTRACT. Additionally, when applicable, no funds shall be disbursed prior to submittal of certified payroll documentation to COUNTY with each invoice package /request for payment, as further defined in Section XII. C. CONTRACT Amount It is expressly agreed and understood that the total amount to be paid by COUNTY under this CONTRACT shall not exceed $200,000(Two Hundred Thousand Dollars and 00 Cents). Reimbursement for the payment of eligible project expenses shall be made in accordance with the budget specified in Section II of SUBRECIPIENT SCOPE OF SERVICES. SUBRECIPIENT's acknowledge that HUD funds are not meant to replace or supplant other sources of funding. D. Readiness SUBRECIPIENT shall be required to demonstrate to COUNTY its readiness to immediately initiate its PROJECT upon execution of this CONTRACT by providing to the COUNTY documentation including, but not limited to, the following: Board or Council Minutes /Resolution; Awarded bid documents with timeline requirements; and, executed Architect and Engineer (hereinafter referred to as "A &E ") contracts with specific project timelines consistent with funding. By September 30, 2010 SUBRECIPIENT shall provide COUNTY a Project Readiness Checklist incorporating the status of all PROJECT- phasing milestones. In the case of milestones not yet reached, SUBRECIPIENT shall provide projected target dates for when said milestones will be met. The Project Readiness Checklist shall clearly demonstrate that SUBRECIPIENT will meet the "Required Expenditure Thresholds" established herein Section VI. E. 3. SUBRECIPIENT acknowledges that said Project Readiness Checklist may be considered to evaluate the performance of the SUBRECIPIENT. E. Payment of Project Activities 1. COUNTY will reimburse SUBRECIPIENT for eligible project - related costs only. SUBRECIPIENT shall submit requests for reimbursement to COUNTY on a monthly basis beginning on July 1, 2010, and must provide adequate documentation as required by COUNTY in accordance with the OC COMMUNITY RESOURCES CONTRACT REIMBURSEMENT POLICY, incorporated herein by reference as Exhibit 1. In addition, SUBRECIPIENT will provide a progress performance report ( "GPR Information Form ") for the time period covered, as prescribed by COUNTY. Failure to provide any of the required W-10 CONTRACT NO. KC10918 IDIS NO. 1918 documentation and reporting will cause COUNTY to withhold all or a portion of a request for reimbursement, or return the entire reimbursement package to SUBRECIPIENT, until such documentation and reporting has been received and approved by COUNTY. 2. If SUBRECIPIENT has no request for reimbursement during any quarter during the term of this CONTRACT, a GPR Information Form, including an explanation as to why no invoices were being processed, shall be required in lieu of a request for reimbursement. 3. The following "Required Expenditure Threshold" criteria has been established to guide the SUBRECIPIENT in structuring and scheduling their expenditure of funds received through this CONTRACT. The criteria thresholds are consistent with the criteria used by OC Community Resources to determine performance including, but not limited to, determinations of future award of funds, additional funding requests and /or determinations for the recapture of funding. Minimum Required Milestone Date Expenditure Threshold December 15, 2010 50% of Contracted Amount Expended January 15, 2011 70% of Contracted Amount Expended March 15, 2011 80% of Contracted Amount Expended 4. SUBRECIPIENT will have forty -five (45) days following the expiration of the CONTRACT to submit outstanding invoices for reimbursement of eligible costs incurred during the CONTRACT period. After the forty -five (45) day period for submitting invoices has expired, COUNTY shall reallocate the remaining balance under this CONTRACT for other program purposes and SUBRECIPIENT shall be ineligible for any further reimbursement. F. Program Income 1. SUBRECIPIENT shall comply with regulations set forth in 24 CFR 570.504, as well as all applicable State or COUNTY regulations concerning the reporting and payment procedures for program income. 2. All Program Income accrued shall be returned to COUNTY on a quarterly basis prior to SUBRECIPIENT receiving any reimbursement from grant funds provided under this CONTRACT. 3. SUBRECIPIENT shall provide information of the receipt of PROGRAM INCOME by SUBRECIPIENT related to PROJECT on all GPR INFORMATION FORMS submitted with requests for reimbursement. 4. SUBRECIPIENT shall complete and submit a Year -End Program Income letter, indicating amount of Program Income and include any reimbursement remittance -7- CONTRACT NO. KC10918 IDIS NO. 1918 necessitated therein, by July 15, 2011. VII. GENERAL ADMINISTRATION A. SUBRECIPIENT shall provide the oversight, administration, and project management necessary to accomplish all contracted activities in a timely manner. SUBRECIPIENT also agrees to comply with all applicable Federal, State, and local laws and regulations governing the funds provided under this CONTRACT. B. Independent Contractor Nothing contained in this CONTRACT is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer /employee between the parties. SUBRECIPIENT and its subcontractors shall at all times remain independent contractors with respect to the services to be performed under this CONTRACT. COUNTY shall be exempt from payment of any Unemployment Compensation, FICA, retirement, life and /or medical insurance and Workers' Compensation Insurance as SUBRECIPIENT and its subcontractors are independent contractors. C. Hold Harmless SUBRECIPIENT shall hold harmless, defend with counsel approved in writing by COUNTY and indemnify COUNTY, its elected and appointed officials, officers, employees, agents and those special districts and agencies which COUNTY's Board of Supervisors acts as the governing board ( "COUNTY INDEMNITIES ") from any and all claims, actions, suits, charges and judgments whatsoever including but not limited to personal injury or property damage that arise out of SUBRECIPIENT's and /or its subcontractor's use of funds, performance or nonperformance of the project and /or scope of work called for in this CONTRACT. D. Assignability SUBRECIPIENT shall not assign or transfer any interest in this CONTRACT without the prior written consent of COUNTY. E. Subcontracts 1. SUBRECIPIENT shall submit all subcontract agreements to COUNTY for review and consent prior to entering into such subcontracts. For construction subcontracts, SUBRECIPIENT shall submit the Construction Bid Package to COUNTY for review and written approval by DIRECTOR prior to advertising for bids and award for the construction contract. SUBRECIPIENT shall construct project in accordance with the Construction Bid Package, which DIRECTOR approved, unless prior written approval is received from DIRECTOR for modification thereof. 2. SUBRECIPIENT shall assume responsibility for all subcontracted services to assure CONTRACT compliance. CONTRACT NO. KC10918 IDIS NO. 1918 3. SUBRECIPIENT shall cause this CONTRACT, in its entirety, to be included in and made a part of any subcontract executed in the performance of this CONTRACT. 4. SUBRECIPIENT shall monitor all subcontracted services on a quarterly basis to assure CONTRACT compliance. Results of said monitoring efforts shall be summarized in written form, and supported with documented evidence of follow -up action(s) to correct any area(s) of CONTRACT non - compliance. Documentation shall be made available for periodic monitoring by representatives of COUNTY and /or HUD. F. Relocation SUBRECIPIENT shall, in all matters relating to the project: 1. Take all reasonable steps to minimize displacement by providing tenants reasonable opportunity to lease and occupy dwelling units in the project being improved; and, 2. When applicable, submit to COUNTY a Plan outlining financial and advisory assistance in securing temporary housing for any eligible tenant who is temporarily or permanently relocated due to the project. 3. Comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended by the Uniform Relocation Act /URA, 49 CFR Part 24 and 24 CFR 570.606 for persons displaced by the project; and, 4. Have in effect and follow a residential anti - displacement and relocation plan required under section 104(d) of the Housing and Community Development Act of 1974, as amended, in conjunction with any activity assisted with funding under the subject program. G. Fair Housing SUBRECIPIENT shall affirmatively further fair housing in accordance with 24 CFR 570.904. H. Insurance No costs shall be incurred and no funds shall be disbursed prior to written certification of ,al2oroval by COUNTY of insurance fulfillment. 1. SUBRECIPIENT, at its own expense, agrees to deposit with COUNTY prior to the execution and provision of services under this CONTRACT, Certificates of Insurance, including all endorsements required herein, necessary to satisfy COUNTY that the insurance provisions of this CONTRACT have been complied with, and to keep such insurance and the certificates therefore on deposit with COUNTY during the entire term of this CONTRACT. In addition, all contractors and subcontractors performing work on behalf of SUBRECIPIENT pursuant to this CONTRACT shall be covered under SUBRECIPIENT's insurance or shall obtain insurance subject to the same terms and conditions as set forth herein for SUBRECIPIENT. SUBRECIPIENT shall require that any contractor or subcontractor working for SUBRECIPIENT 'S:M CONTRACT NO. KC10918 IDIS NO. 1918 have the insurance required by this section and not allow contractors or subcontractors to work if the contractors or subcontractors have less than the level of coverage required by the COUNTY under this CONTRACT. SUBRECIPIENT shall provide notice of the insurance requirements to every contractor or subcontractor, and to receive proof of insurance prior to allowing any contractor or subcontractor to begin work. Such proof of insurance must be maintained by SUBRECIPIENT through the entirety of this CONTRACT for inspection by COUNTY representative at any reasonable time. All insurance policies required by this CONTRACT shall declare any deductible or self- insured retention (SIR) in an amount in excess of $25,000 ($5,000 for automobile liability), which shall specifically be approved by COUNTY Executive Office /Office of Risk Management. SUBRECIPIENT shall be responsible for reimbursement of any deductible to the insurer. Any self- insured retentions (SIRS) or deductibles shall be clearly stated on the Certificate of Insurance. 2. SUBRECIPIENT shall maintain insurance acceptable to COUNTY in full force and effect throughout the term of this CONTRACT. If SUBRECIPIENT fails to maintain insurance acceptable to COUNTY for the full term of this CONTRACT, COUNTY may terminate this CONTRACT. 3. The policy or policies of insurance must be issued by an insurer licensed to do business in the State of California (California Admitted Carrier). 4. Minimum insurance company ratings as determined by the most current edition of the Best's Key Rating Guide /Property - Casualty /United States or ambest.com shall be A- (Secure Best's Rating) and VIII (Financial Size Category). Contractor will file with the County, prior to the commencement of performance of services under the Contract an original Certificate of Insurance and all required endorsement evidencing that coverage required by this Contract is in effect. 5. If the carrier is a non - admitted carrier in the State of California, COUNTY Executive Office /Office of Risk Management retains the right to approve or reject carrier after a review of the company's performance and financial ratings. 6. The policy or policies of insurance maintained by SUBRECIPIENT shall provide the minimum limits and coverage as set forth herein below: Coverage Commercial General Liability to include a Broad Form Property Minimum Limits $1,000,000 combined single limit per occurrence Damage Endorsement and Contractual Liability Automobile Liability including coverage for all owned, non -owned and hired vehicles $2,000,000 Aggregate $1,000,000 combined single limit per occurrence -10- CONTRACT NO. KC10918 IDIS NO. 1918 Workers' Compensation Employer's Liability Sexual Misconduct Statutory $1,000,000 per occurrence $1,000,000 per occurrence 7. Each insurance policy required by this CONTRACT shall be endorsed to contain the following provisions: a. This insurance shall not be changed, canceled, limited in scope of coverage or non - renewed until after 30 days written notice has been given to COUNTY of Orange /OC Community Resources (Endorsement must be attached to Certificate of Insurance). If a 30 -day notice of cancellation endorsement is not received, the cancellation clause must include language as follows, which edits the pre - printed ACORD certificate: SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. b. All rights of subrogation are hereby waived against COUNTY, it's elective and appointed officials, officers and employees when acting within the scope of their employment or appointment, and COUNTY and their Board or Commissions, which are governed by COUNTY Board of Supervisors. (Endorsement must be attached to Certificate of Insurance). C. With respect to the operations of the named insured, operations performed on behalf of COUNTY, COUNTY shall be added as an additional insured on all insurance policies required by this Contract except for Workers' Compensation /Employers' Liability. (Endorsement must be attached to Certificate of Insurance). d. SUBRECIPIENT is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for Worker's Compensation or be self- insured in accordance with the provisions of that code. The SUBRECIPIENT will comply with such provisions and shall furnish the COUNTY satisfactory evidence of such compliance for the period of this contract, statutory Worker's Compensation Insurance and Employer's Liability Insurance with minimum limits of $1,000,000 per occurrences. e. It is agreed that any insurance maintained by COUNTY will apply in excess of, and not contribute with, insurance provided by these policies. (Endorsement must be attached to Certificate of Insurance for the General Liability policy and Sexual Misconduct Liability policy). f. Commercial General Liability policy shall contain a severability of interests clause. -11- CONTRACT NO. KC10918 IDIS NO. 1918 8. Insurance information shall be submitted to: COUNTY OF ORANGE OC COMMUNITY RESOURCES ATTENTION: MANAGER, COMMUNITY DEVELOPMENT 1770 NORTH BROADWAY SANTA ANA, CA 92706 -2642 9. County expressly retains the right to require Contractor to increase or decrease insurance of any of the above insurance types throughout the term of this Contract. Any increase or decrease in insurance will be as deemed by the County of Orange Risk Manager as appropriate to adequately protect County. In addition, COUNTY Risk Manager retains the right to require additional insurance coverage as may be deemed appropriate to adequately protect COUNTY. COUNTY's requirements shall be reasonable and shall be designed to assure protection from and against the kind and extent of risks, which exist at the time a change in insurance is required. 10. COUNTY shall notify SUBRECIPIENT in writing of changes in the insurance requirements. If SUBRECIPIENT does not deposit copies of acceptable certificates of insurance and endorsements with COUNTY incorporating such changes within thirty (30) days of receipt of such notice, this CONTRACT may be in default without further notice to SUBRECIPIENT, and COUNTY shall be entitled to all legal remedies. The procuring of such required policy or policies of insurance shall not be construed to limit SUBRECIPIENT's liability hereunder or to fulfill the indemnification provisions and requirements of this CONTRACT. 11. INDEMNIFICATION PROVISIONS SUBRECIPIENT agrees to indemnify, defend with counsel approved in writing to COUNTY, and hold COUNTY, its elected and appointed officials, officers, employees, agents and those special districts and agencies which COUNTY's Board of Supervisors acts as the governing Board ( "COUNTY INDEMNITEES ") harmless from any claims, demands or liability of any kind or nature, including but not limited to personal injury or property damage, arising from or related to the services, products or other performance provided by SUBRECIPIENT pursuant to this CONTRACT. If judgment is entered against SUBRECIPIENT and COUNTY by a court of competent jurisdiction because of the concurrent active negligence of COUNTY or COUNTY INDEMNITEES, SUBRECIPIENT and COUNTY agree that liability will be apportioned as determined by the court. Neither party shall request a jury apportionment. I. Grantor Recognition SUBRECIPIENT shall insure recognition of the role of the COUNTY in providing services through this CONTRACT. All activities, facilities and items utilized pursuant to this CONTRACT shall be prominently labeled as to funding source. In addition, SUBRECIPIENT will include a reference to the support provided herein in all publications made possible with funds made available under this CONTRACT. SUBRECIPIENT will retain documentation of such -12- CONTRACT NO. KC10918 IDIS NO. 1918 recognition, which shall be available for periodic monitoring by representatives of COUNTY or HUD. I Records to be Maintained SUBRECIPIENT shall maintain all records required by the Federal regulations specified in 24 CFR 570.503(b)(2), 570.506, 570.507 and 570.508 that are pertinent to the activities to be funded under this CONTRACT. Such records shall include, but not be limited to: 1. Records providing a full description of each activity undertaken; 2. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; 3. Records required to determine the eligibility of activities; 4. Records required to document the acquisition, improvement, use, or disposition of real property acquired or improved with CDBG assistance; 5. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; 6. Financial records as required by 24 CFR 570.502, and OMB Circular A- 87; and 7. Other records necessary to document compliance with Subpart K of 24 CFR 570. 8. Retention SUBRECIPIENT shall retain all records pertinent to expenditures incurred under this CONTRACT for a period of five (5) years after the termination of all activities funded under this CONTRACT, or after the resolution of all Federal audit findings, whichever occurs later. Records for non - expendable property acquired with funds under this CONTRACT shall be retained for five (5) years after final disposition of such property. Records for any displaced person must be kept for five (5) years after s /he has received final payment. 9. Client Data a. SUBRECIPIENT shall maintain client data demonstrating client eligibility for services provided for a period of five (5) years after the termination of all activities funded under this CONTRACT, or after the resolution of all Federal audit findings, whichever occurs later. Such data shall be consistent and include, but not be limited to, client name, address, verifiable income level (as documented by income tax returns, employee payroll records, retirement statements, etc. or other third party documentation acceptable to COUNTY, for determining eligibility), and description of service provided. Such information shall be made available to HUD representatives, COUNTY monitors, or their designees, for review upon request. -13- CONTRACT NO. KC10918 IDIS NO. 1918 b. SUBRECIPIENT shall develop and implement procedures to ensure the confidentiality of records pertaining to any individual provided family violence prevention or treatment services under any project assisted under the subject program, including protection against the release of the address or location of any family violence shelter project, except with the written authorization of the person responsible for the operation of the shelter. 10. Property Records SUBRECIPIENT shall maintain real property inventory records, which clearly identify properties purchased, improved, or sold. Properties retained shall continue to meet eligibility criteria, rental limitations, health, safety and building codes, etc., and shall conform with 24 CFR 570.505(a). K. Close -Out SUBRECIPIENT's obligation to COUNTY shall not end until all close -out requirements are completed. Activities during this close -out period shall be completed in accordance with 24 CFR 570.509 and shall include, but are not limited to: making final payments; submitting final invoice(s), report(s), in accordance with the requirements of paragraph VI.E.4 above, and documentation; disposing of program assets (including the return to COUNTY of all unused materials and equipment); remitting any program income balances and receivable accounts to COUNTY, and determining the custodianship of records. L. Equipment SUBRECIPIENT shall use, manage and dispose of equipment in accordance with 24 CFR 85.32 and 24 CFR 570.502 VIII. PERFORMANCE A. SUBRECIPIENT shall comply with all applicable HUD regulations, as described in Section XII of this CONTRACT, concerning administrative requirements and maintain records as to services provided and total number of persons served through the project, including but not limited to, population -served analysis (i.e., extremely -low income persons, very-low income persons, and low- income persons as defined by HUD). Such information shall be available for periodic monitoring by representatives of COUNTY or HUD and shall be submitted by SUBRECIPIENT in report form to COUNTY by dates specified by COUNTY. B. The following "Performance Threshold" criteria shall be used to assess the level of performance of the SUBRECIPIENT. Furthermore, the criteria will be considered by OC Community Resources when determining future funding. In order to be considered in compliance with the following performance criteria, the SUBRECIPIENT must, on or before the required milestone date, submit to OC Community Resources a request for reimbursement which demonstrates that SUBRECIPIENT has expended funds and met their proposed -14- CONTRACT NO. KC10918 IDIS NO. 1918 accomplishment goals at the required levels, unless exempted in writing by the DIRECTOR. Minimum Performance Expenditure_ Milestone Date and Accomplishment Thresholds December 15, 2010 50% of Contracted Amount Expended and 50% of Proposed Accomplishments Met January 15, 2011 70% of Contracted Amount Expended and 70% of Proposed Accomplishments Met March 15, 2011 80% of Contracted Amount Expended and 80% of Proposed Accomplishments Met Failure to achieve at least the aforementioned 50% drawdown, without a written exemption approved by the DIRECTOR, may cause any remaining balance in this CONTRACT to be reclaimed by COUNTY, and will negatively affect future funding to SUBRECIPIENT. Failure to achieve the aforementioned 80% drawdown goal, without written exemption approved by the DIRECTOR, may cause any remaining balance in this CONTRACT to be reclaimed by COUNTY, and will impact future funding to SUBRECIPIENT. C. SUBRECIPIENT shall complete and submit a Year End GPR Information Form by July 15, 2011. D. Should the activity being funded through this CONTRACT be completed, cancelled or terminated prior to the termination date set forth herein in Section IV. A., SUBRECIPIENT shall complete and submit a Mid -Year End GPR Information Form at the time of the completion, cancellation or termination. Said GPR Information Form shall consist of a cumulative reporting of project- related expenditures and accomplishments relative to the attached SUBRECIPIENT SCOPE OF SERVICES. If activity funded through this CONTRACT is completed, or if funds allocated through this CONTRACT are fully expended, prior to end of CONTRACT term, SUBRECIPIENT must continue to serve its clients for the entire term of this CONTRACT. E. SUBRECIPIENT shall complete and submit a GPR Information Form in support of all requests for reimbursement. Said GPR Information Form shall consist of a cumulative report of project related accomplishments relative to attached SUBRECIPIENT SCOPE OF SERVICES for the subject quarter. If at any time during the term of this CONTRACT SUBRECIPIENT has no activity occur during any quarter, SUBRECIPIENT shall prepare and submit to COUNTY a Quarterly GPR Information Form, regardless of actual activity. F. SUBRECIPIENT acknowledges that the GPR Form is a monitoring tool that will be reviewed and evaluated to determine SUBRECIPIENT's level of performance relative to this CONTRACT. G. SUBRECIPIENT shall submit all requested data necessary to complete the Consolidated Annual Performance and Evaluation Report (CAPER), and monitor program -15- CONTRACT NO. KC10918 IDIS NO. 1918 accountability and progress in accordance with HUD requirements, in the format and at the time designated by COUNTY. IX. PERFORMANCE MONITORING A. Performance monitoring of SUBRECIPIENT by COUNTY and /or HUD shall consist of requested and /or required written reporting, as well as onsite monitoring by COUNTY or HUD representatives. B. COUNTY shall periodically evaluate SUBRECIPIENT's progress in complying with the terms of this CONTRACT. SUBRECIPIENT shall cooperate fully during such monitoring. COUNTY shall report the findings of each monitoring to SUBRECIPIENT. C. COUNTY shall monitor the performance of SUBRECIPIENT against the goals, outcomes, milestones and performance standards required herein. Substandard performance, as determined by COUNTY, will constitute non - compliance with this CONTRACT for which COUNTY may immediately terminate the CONTRACT. If action to correct such substandard performance is not taken by SUBRECIPIENT within the time period specified by COUNTY, payment(s) will be denied in accordance with the provisions contained in Section VI of this CONTRACT. X. MODIFICATIONS/TRANSFERS OF REAL PROPERTY A. Any proposed modification or change in use of real property acquired or improved, in whole or in part, by CDBG funds from the use planned at the time of the acquisition or improvement, including disposition, is expressly prohibited. B. SUBRECIPIENT shall ensure that any real property under SUBRECIPIENT's control that was acquired or improved in whole or in part with CDBG funds in excess of $25,000 is either: 1. Used to meet one of the national objectives contained in 24 CFR 570.208 for a period not less than five years, or for such period of time as determined to be appropriate by COUNTY, after expiration of the CONTRACT and close -out of SUBRECIPIENT's participation in the CDBG Program, or, until five years after the close -out of the grant from which the assistance to the property was provided, whichever occurs first; or, 2. Disposed of in a manner that results in COUNTY being reimbursed in an amount equal to the current fair market value of the property less any portion of the value 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 specified in accordance with X. B. 1. above. XI. AUDITS If SUBRECIPIENT expends Federal funds in a fiscal year equal or exceed $500,000 (five hundred thousand dollars and no cents) as specified in OMB Circular A- 133 - Revised, -16- CONTRACT NO. KC10918 IDIS NO. 1918 SUBRECIPIENT shall cause an audit to be prepared by a Certified Public Accountant (CPA) who is a member in good standing with the American Institute of Certified Public Accountants ( AICPA) of the California Society of CPA's. The audit must be performed annually in accordance with Generally Accepted Auditing Standards (GRAS) authorized by the AICPA and Federal laws and regulations governing the programs in which it participates. Furthermore, COUNTY retains the authority to require SUBRECIPIENT to submit similarly prepared audit at SUBRECIPIENT's expense even in instances when SUBRECIPIENT's expenditure is less than $500,000. SUBRECIPIENT will be required to identify corrective action taken in response to any findings identified by CPA related to their funded activity or program. SUBRECIPIENT shall submit two (2) copies of such audit report, including a copy of the management letter, to COUNTY within six (6) months of the end of each CONTRACT year in which SUBRECIPIENT has received federal funding (i.e., July 1 - June 30). Failure to meet this requirement may result in COUNTY denying reimbursement of funds to SUBRECIPIENT, as well as future funding qualification. SUBRECIPIENTS, which are exempt from statutory audit requirements, shall maintain records, which are available for review by COUNTY or Federal officials. SUBRECIPIENT acknowledges that any and all "Financial Statements" submitted to COUNTY pursuant to this COUNTY become Public Records and are subject to public inspection pursuant to Sec.6250 et seq. of the California Government Code. XII. FEDERAL ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards SUBRECIPIENT agrees to comply with OMB Circular A -87 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles SUBRECIPIENT shall administer its program in conformance with OMB Circulars A -122, "Cost Principles for Non - Profit Organizations," or A -21, "Cost Principles for Educational Institutions," (and if SUBRECIPIENT is a governmental or quasi - governmental agency, the applicable sections of 24 CFR 85, "Uniform Administrative Requirements for Grants and Cooperative Contracts to State and Local Governments, ") as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. B. Civil Rights 1. Compliance SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964, as amended, Title VIII of the Civil Rights Act of 1968, as amended, Section 109 of the Title I of the Housing and Community Development Act of 1974, Section 504 of the -17- CONTRACT NO. KC10918 IDIS NO. 1918 Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246, as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination SUBRECIPIENT shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital status, or status with regard to public assistance. SUBRECIPIENT will take affirmative action to insure that all employment practices are free from hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, and termination discrimination. Such employment practices include but are not limited to the following: rates of pay or other forms of compensation, and selection for training, including apprenticeship. SUBRECIPIENT agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the COUNTY setting forth the provisions of this nondiscrimination clause. 3. Rehabilitation Act SUBRECIPIENT agrees to comply with any federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 706) which prohibits discrimination against the handicapped in any federally assisted program. COUNTY shall provide SUBRECIPIENT with any guidelines necessary for compliance with that portion of the regulations in force during the term of this CONTRACT. C. Drug -Free Workplace SUBRECIPIENT shall continue to provide a drug free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the SUBRECIPIENT's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug -free awareness program to inform employees about: a. The dangers of drug abuse in the workplace; b. The SUBRECIPIENT's policy of maintaining a drug -free workplace; C. Any available drug counseling, rehabilitation, and employee assistance programs; d. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee engaged in the performance of the grant be given a copy of the statement required by paragraph C.1; -18- CONTRACT NO. KC10918 IDIS NO. 1918 4. Notifying the employee in the statement required by paragraph C.1. that, as a condition of employment under the grant, the employee will: a. Abide by the terms of the statement; b. Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace, no later than five (5) calendar days after such conviction; 5. Notifying COUNTY in writing, within ten (10) calendar days after receiving such notice as stated under paragraph C.4 (b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless COUNTY has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; and, 6. Taking one of the following actions, within thirty (30) calendar days of receiving notice, as stated under paragraph C.4 (b), with respect to any employee who is so convicted: a. Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or, b. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program for such purposes by Federal, State, or local health, law enforcement, or other appropriate agency. D. Affirmative Action SUBRECIPIENT agrees that it shall be committed to carry out an Affirmative Action Program that encompasses the principles provided in President's Executive Order 11246, as revised on January 4, 2002. E. Americans with Disabilities Act SUBRECIPIENT agrees to comply with any federal regulations issued pursuant to compliance with the Americans with Disabilities Act which prohibits discrimination and ensures equal opportunity for persons with disabilities in employment, State and local government services and public accommodations. F. Employment Restrictions 1. Prohibited Activity SUBRECIPIENT is prohibited from using funds provided herein, or personnel employed in the administration of the program, for: political activities, sectarian or religious activities, lobbying, political patronage, and nepotism activities. -19- CONTRACT NO. KC10918 IDIS NO. 1918 2. OSHA Where employees are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions, which are unsanitary, hazardous or dangerous to the participants' health or safety. 3. Labor Standards a. SUBRECIPIENT agrees to contact COUNTY no less than fourteen (14) days prior to bid opening date to seek consultation regarding application of requirements per federal labor standards regulations or Davis -Bacon related Acts. b. SUBRECIPIENT will comply with Davis -Bacon Act and /or State Prevailing Wage requirements, when applicable. C. SUBRECIPIENT agrees to comply with all applicable requirements of the Secretary of Labor in accordance with the Davis -Bacon Act, the provisions of Contract Work Hours and Safety Standards Act, the Copeland "Anti- Kickback" Act (40 U.S.C. 276, 327- 333), and all other applicable federal, state and local laws and regulations pertaining to labor standards. SUBRECIPIENT shall maintain all applicable documentation, which demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to COUNTY for review upon request. d. SUBRECIPIENT agrees that, except with respect to the rehabilitation or construction of residential property designed for residential use for less than eight (8) units, all contractors engaged in contracts of $2,000.00 or more for construction, renovation or repair of any building or work financed in whole or in part with assistance provided under this CONTRACT, shall comply with all applicable federal requirements including Department of Labor regulations, under 29 CFR, Parts 3, 1, 5, 7 and 1926 governing the payment of wages and ratio of apprentices and trainees to journeymen. Nothing hereunder is intended to relieve SUBRECIPIENT of its obligation, if any, to require payment of the higher rate under state or local laws SUBRECIPIENT shall insert provisions meeting the requirements of this paragraph in all such Contracts. e. In cases where the Davis -Bacon Act applies, SUBRECIPIENT agrees to submit the Construction Bid Package for this project to DIRECTOR for review and written approval prior to advertising for bids and award of the construction Contract. Unless prior written approval is received from DIRECTOR for modification, SUBRECIPIENT shall construct project in accordance with the approved Construction Bid Package. 4. California Labor Code Compliance a. If Prevailing Wage laws apply, SUBRECIPIENT hereby agrees to - 20- CONTRACT NO. KC10918 IDIS NO. 1918 pay, or cause its subcontractors to pay, Prevailing Wage rates at all times for all construction, improvements, or modifications to be completed for COUNTY' under this CONTRACT. Subrecipient herein agrees that SUBRECIPIENT shall post, or cause to be posted, a copy of the most current, applicable Prevailing Wage rates at the site where the construction, improvements, or modifications are performed. b. Payroll Records SUBRECIPIENT agrees that: Certified copies of all payroll records for this project shall be required pursuant to the provisions of California Labor Code "Section 1776 ". The reporting format and words of certification shall be as indicated in Title 8 of the California Code of Regulations, Section 16401. Certified copies of payroll records of all subcontractors working on this project are required. It shall be the responsibility of the prime contractor to ensure subcontractor compliance. Certified copies of all payroll records shall be submitted on a weekly basis to COUNTY through the duration of this CONTRACT. SUBRECIPIENT acknowledges that failure to comply with Section 1776 may result in a forfeiture of twenty -five dollars ($25) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated, and it should be recognized that a contractor or subcontractor, or agent or representative thereof who neglects to comply is guilty of a misdemeanor pursuant to California Labor Code Section 1777. 5. Economic Opportunities a. Compliance This Contract is subject to the requirements of 12 USC 1701u, the HUD regulations issued pursuant thereto at 24 CFR, 135.1 et seq., and any applicable rules and orders of HUD issued Federal financial assistance shall be conditioned upon compliance with 12 USC 1701u. Failure to fulfill these requirements shall subject SUBRECIPIENT and any sub - subrecipients, their successors and assigns, to those remedies specified herein. SUBRECIPIENT certifies and agrees that no conflict exists which would prevent compliance with requirements. The Contractor agrees to abide by 24 CFR, 135.38, below and will insert the following clause in any subcontracts executed with third parties for work covered by this Contract: "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. -21- CONTRACT NO. KC10918 IDIS NO. 1918 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. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding if any, a notice advising the labor organization . or workers' representative of the contractor's commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. The contractor 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 contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135. 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. 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 extend feasible (1) 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). " 6. Hatch Act SUBRECIPIENT agrees that no funds provided, nor personnel employed under this CONTRACT, shall be in any way or to any extent engaged in the conduct of political activities in violation of the Hatch Act, 5 U.S.C. Section 1501 et seq. 7. Conflict of Interest SUBRECIPIENT agrees to abide by the provisions of OMB Circulars 102 and 110, as applicable, 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no �►*•� CONTRACT NO. KC10918 IDIS NO. 1918 financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this CONTRACT. SUBRECIPIENT further covenants that in the performance of this CONTRACT no person having such a financial interest shall be employed or retained by SUBRECIPIENT hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of COUNTY or SUBRECIPIENT, or any designated public agencies which are receiving funds under the CDBG Entitlement program. G. Copyright If this CONTRACT results in any copyrightable material, COUNTY and /or grantor agency reserves the right to royalty -free, non - exclusive, and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work (i.e., photographs and the like) for government purposes. H. Religious Organization In accordance with 24 CFR 570.200(j), SUBRECIPIENT shall not discriminate against faith -based organizations in administering its federal HUD activities. However, SUBRECIPIENT agrees that funds provided under this CONTRACT will not be utilized for religious activities, to promote religious interest, or for the benefit of a religious organization in accordance with 24 CFR 570.200(j)(2). I. Anti - Lobbying SUBRECIPIENT certifies that: 1. No Federal appropriated funds will be paid, by or on behalf of it, 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; 2. SUBRECIPIENT will complete and submit Standard Form -LLL "Disclosure of Lobbying Activities," if any funds other than Federal appropriated funds have been paid, in accordance with its instructions; and, 3. SUBRECIPIENT shall include subject anti - lobbying certification in award documents for all sub - subrecipients at all tiers (including sub - subcontracts, sub- subgrants, and Contracts under grants, loans, and Cooperative Agreements) and that all sub - subrecipients shall certify and disclose accordingly. -23- CONTRACT NO. KC10918 IDIS NO. 1918 XIII. ENVIRONMENTAL CONDITIONS A. SUBRECIPIENT shall comply with HUD Environmental Review under HUD regulations at 24 CFR 58 et seq., which implement the National Environmental Policy Act (NEPA); and, the California Environmental Quality Act (CEQA). No costs shall be incurred and no funds shall be disbursed prior to certification by COUNTY and /or HUD of environmental compliance. B. SUBRECIPIENT shall incur no costs for any project - related activity defined in SUBRECIPIENT SCOPE OF SERVICES and COUNTY shall not disburse funds prior to certification by COUNTY and /or HUD for environmental compliance. C. SUBRECIPIENT _ shall provide requested materials to COUNTY for the Environmental Review process required by applicable regulations. D. Air and Water SUBRECIPIENT agrees to comply with the following regulations insofar as they apply to the performance of this CONTRACT: 1. Clean Air Act, 42 U.S.C., 1857, et seq. 2. Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq. 3. Environmental Protection Agency (EPA) regulations pursuant to 40 CFR 50 and 58, as amended. E. Flood Disaster Protection SUBRECIPIENT agrees to comply with the requirements of the Flood Disaster Protection Act of 1973, including as applicable any regulations set forth in 24 CFR 55, in regard to the sale, lease or other transfer of land acquired, cleared, or improved under the terms of this CONTRACT, as it may apply to the provisions of this CONTRACT. F. Lead -Based Paint SUBRECIPIENT agrees that any construction or rehabilitation of residential structures with assistance provided under this CONTRACT shall be subject to HUD Lead -Based Paint Regulations at 24 CFR 570.608, and 24 CFR 35. Such regulations pertain to all HUD - assisted housing and require that all owners, prospective owners, and tenants or properties constructed prior to 1978 be properly notified with the "Protect Your Family From Lead In Your Home" publication, found at http: / /www.epa.gov /lead that such properties may include lead -based paint. G. Historic Preservation SUBRECIPIENT agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR 800, Protection of Historic Properties, insofar as they apply -24- CONTRACT NO. KC10918 IDIS NO. 1918 to the performance of this CONTRACT. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, State, or local historic property list. H. Energy Efficiency Standards SUBRECIPIENT agrees to comply with the California Energy Commission Assembly Bill 970, Title 24, Part I of the California Code of Regulations (AB970: Building Efficiency Energy Standards), in regard to construction and property development, when applicable. XIV. NOTICES Any communication with COUNTY and SUBRECIPIENT concerning this CONTRACT shall be directed as follows: COUNTY: County of Orange OC Community Resources 1770 North Broadway Santa Ana, California 92706 -2642 Attention: Manager, Community Development SUBRECIPIENT: City of Seal Beach 211 Eighth Street Seal Beach, CA 90740 Attention: Mark Persico Phone: (562) 431 -2527 FAX: (562) 430 -8763 -25- CONTRACT NO. KC10918 IDIS NO. 1918 IN WITNESS WHEREOF, SUBRECIPIENT has caused this CONTRACT to be executed by its Mayor and its City Manager; COUNTY has caused this CONTRACT to be executed by the DIRECTOR of OC Community Resources; all having been duly authorized by the City Council, of SUBRECIPIENT and the Orange County Board of Supervisors, respectively. SUBRECIPIENT*: City of Seal Beach a municipal corporation, in the State of California By: Name: David Saloan Title: Mayor Date: By: Name: David Carmany Title: City Manager Date: *For Contractors /Vendors that are a corporation. Signature requirements are as follows: 1) One signature by the Chairman of the Board, the President or any Vice President, And 2) One signature by the Secretary, any Assistant Secretary, the Chief Financial Officer or an Assistant Treasurer. For Contractors /Vendors that are not a corporation, the person who has authority to bind the Contractor/Vendor to a CONTRACT must sign on one of the lines above. COUNTY OF ORANGE, a political subdivision of the State of California COUNTY COUNSEL, APPROVAL AS TO FORM: Date: 4/28/10 By: DIRECTOR, OC Community Resources Date: -26-