HomeMy WebLinkAboutAGMT - California Dept. of Boating & Waterways (Surfside Feasibility) •
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RESCISSION AGREEMENT
City of Seal Beach
Grant Agreement 00-300-612 as amended
This Agreement is entered into to February 14, 2005 between the State of California,
Department of Boating and Waterways (Department) and the City of Seal Beach (City).
Department and City agree as follows:
1. Consent to Rescission: The parties hereby consent and agree to rescind that
certain grant agreement between them (agreement# 00-300-612 as amended)
dated May 1, 2003 in which the Department agreed to make a local assistance
grant in the amount of Three Hundred Thirty Three Thousand Seven Hundred
Fifty($338,750) to assist in funding the U. S. Army Corps of Engineers'
Surfside Beach Feasibility Study. This Rescission Agreement is pursuant to
the right of the parties, under the agreement, to cancel the agreement upon the
consent of the parties. A copy of that agreement is attached.
2. Disposition of Proceeds: The parties agree that $113,750 was disbursed to
the grantee and $225,000 was not disbursed. The $113,750 shall be retumed,
within 30 days of this rescission, to the Department and it will be
disencumbered and reverted to the Public Beach Restoration Fund for future
grant applicants. The $225,000 was not disbursed and it will be
disencumbered and reverted to the Harbors and Watercraft Revolving Fund
for loan or grant to future applicants.
3. Reason for Rescission: The parties agree that the reason for this rescission
is that the U.S. Army Corps of Engineers has been unable to secure federal
funding to pursue this cost-shared study and State funding could be put to use
elsewhere.
4. Borrowers Right to Reapply: The parties agree that the City may submit a
new application for grant funds in the future and its application will be
received by the Department without prejudice and will be considered based
upon the feasibility of the study or project.
5. Surrender of Rights: The parties mutually agree to forgo all other rights and
benefits provided for under the agreement referred to in Paragraph 1 above as
consideration for the rescission of that agreement.
DEPARTMENT ♦ /
. 6�.
R ynor Tsuney , Director John B. Bahorski, City Manager
Date: 3-15-2005 Date:
• •
Department al Memo Public Works
To: Pam Arends-King, Director of Administrative Services
From: Mark Vukojevic, P.E., Director of Public Works/City Engineer n 40 Copy: John Bahorski, City Manager, Karen Walton, File, DD
cop'C�}„ del I
Date: March 23,2005 �1
Re: ACOE San Gabriel to Newport Bay Study -$113,750
The Department of Boating and Waterways (DBAW) has returned a signed copy of the
rescission agreement for the above mentioned project.. Per the approved rescission
agreement with the DBAW, as approved by City Council on February 14, 2005 please
disburse a refund of$113,750 to DBAW.
DBAW disbursed$113,750 to the City and the project has been canceled by the Army Corp.
of Engineers (ACOE). No funds have been disbursed to ACOE and none are due to them.
Please forward a copy of the refund check for our Public Work files.
Please refer to the attached documents if you have any questions.
Thanks,
Attachments:
Signed rescission agreement dated 3-15-05
Copy of February 14, 2005 City Council Agenda Report—Rescission Agreement
Copy of May 6, 2003 memo to Finance
Copy of April 30, 2003 ACOE Letter Request for$113,475
Copy of June 25, 2001 Agenda Report—DBAW Funding Agreement
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l L 1Uh wr
AGREEMENT
BETWEEN THE DEPARTMENT OF THE ARMY
AND
THE CITY OF SEAL BEACH
FOR
THE SAN GABRIEL TO NEWPORT BAY (SURFSIDE COLONY) FEASIBILITY STUDY
THIS AGREEMENT is entered into this /5 day, of CS , 2002 by and between the
Department of the Army(hereinafter the "Government"), represented by the District Engineer
executing this Agreement, and the City of Seal Beach (hereinafter the "Sponsor"),
WITNESSETH, that
WHEREAS, the Congress (Senate and/or House Committees) has authorized the Department of
the Army, represents! b the Di-trrt Engineer to conducta study to develop a Regional Shore
Protection/Sand Management Plan, similar in concept to Watershed Management Plans pursuant
to the River and Harbor and Flood Control Act of 1962, Public Law 87-874, 87th Congress, dated
October 23, 1962, in accordance with Section 110; and
WHEREAS, the U.S. Army Corps of Engineers has conducted a reconnaissance study of the
problems related to shore protection of the shoreline at Surfside Colony in the City of Seal
Beach, California pursuant to this authority, and has determined that further study in the nature of
a "Feasibility Phase Study" (hereinafter the "Study") is required to fulfill the intent of the study
authority and to assess the extent of the Federal interest in participating in a solution to the
identified problem; and
WHEREAS, Section 105 of the Water Resources Development Act of 1986 (as amended by
Section 225 of the Water Resources Development Act of 2000) specifies the cost sharing
requirements applicable to the Study;
WHEREAS, the Sponsor has the authority and capability to furnish the cooperation hereinafter
set forth and is willing to participate in study cost sharing and financing in accordance with the
terms of this Agreement; and
WHEREAS, the Sponsor and the Government understand that entering into this Agreement in no
way obligates either party to implement a project and that whether the Government supports a
project authorization and budgets it for implementation depends upon, among other things, the
outcome of the Study and whether the proposed solution is consistent with the Economic and
Environmental Principles and Guidelines for Water and Related Land Resources Implementation
Studies and with the budget priorities of the Administration;
NOW THEREFORE, the parties agree as follows:
ARTICLE I- DEFINITIONS
For the purposes of this Agreement:
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A. The term "Study Costs" shall mean all disbursements by the Government pursuant to this
Agreement, from Federal appropriations or from funds made available to the Government by the
Sponsor, and all negotiated costs of work performed by the Sponsor pursuant to this Agreement.
Study Costs shall include,but not be limited to: labor charges; direct costs; overhead expenses;
supervision and administration costs; the costs of participation in Study Management and
Coordination in accordance with Article IV of this Agreement; the costs of contracts with third
parties, including termination or suspension charges; and any termination or suspension costs
(ordinarily defined as those costs necessary to terminate ongoing contracts or obligations and to
properly safeguard the work already accomplished) associated with this Agreement.
B. The term "estimated Study Costs" shall mean the estimated cost of performing the Study as of
the effective date of this Agreement, as specified in Article DI.A. of this Agreement.
C. The term "excess Study Costs" shall mean Study Costs that exceed the estimated Study Costs
and that do not result from mutual agreement of the parties, a change in Federal law that
increases the cost of the Study nra_change in the"gcppe of the Study rea ested by the Sponsor.
D. The term "study period" shall mean the time period for conducting the Study, commencing
with the release to the U.S. Army Corps of Engineers Los Angeles District of initial Federal
feasibility funds following the execution of this Agreement and ending when the Assistant
Secretary of the Army (Civil Works) submits the feasibility report to the Office of Management
and Budget (OMB) for review for consistency with the policies and programs of the President.
E. The term "PMP" shall mean the Project Management Plan,which is attached to this
Agreement and which shall not be considered binding on either party and is subject to change by
the Government, in consultation with the Sponsor.
F. The term "negotiated costs" shall mean the costs of in-kind services to be provided by the
Sponsor in accordance with the PMP.
G. The term "fiscal year" shall mean one fiscal year of the Government. The Government fiscal
year begins on October 1 and ends on September 30.
ARTICLE II- OBLIGATIONS OF PARTIES
A. The Government, using funds and in-kind services provided by the Sponsor and funds
appropriated by the Congress of the United States, shall expeditiously prosecute and complete the
Study, in accordance with the provisions of this Agreement and Federal laws, regulations, and
policies.
B. In accordance with this Article and Article D A., BIB. and III.C. of this Agreement, the
Sponsor shall contribute cash and in-kind services equal to fifty(50) percent of Study Costs other
than excess Study Costs. The Sponsor may, consistent with applicable law and regulations,
contribute up to 50 percent of Study Costs through the provision of in-kind services. The in-kind
services to be provided by the Sponsor, the estimated negotiated costs for those services, and the
estimated schedule under which those services are to be provided are specified in the PMP.
Negotiated costs shall be subject to an audit by the Government to determine reasonableness,
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allocability, and allowability.
C. The Sponsor shall pay a fifty(50)percent share of excess Study Costs in accordance with
Article IBID. of this Agreement.
D. The Sponsor understands that the schedule of work may require the Sponsor to provide cash
or in-kind services at a rate that may result in the Sponsor temporarily diverging from the
obligations concerning cash and in-kind services specified in paragraph B. of this Article. Such
temporary divergences shall be identified in the quarterly reports provided for in Article M.A. of
this Agreement and shall not alter the obligations concerning costs and services specified in
paragraph B. of this Article or the obligations concerning payment specified in Article III of this
Agreement.
E. If, upon the award of any contract or the performance of any in-house work for the Study by
the Government or the Sponsor, cumulative financial obligations of the Government and the
Sponsor would result in excess Study Costs, the Government and the Sponsor agree to defer
- — award of that and all.subsequent contracts and performance of that and all subsequent in-house
work, for the Study until the Government and the Sponsor agree to proceed. Should the
Government and the sponsor require time to arrive at a decision, the Agreement will be
suspended in accordance with Article X., for a period of not to exceed six months. In the event
the Government and the sponsor have not reached an agreement to proceed by the end of their 6
month period, the Agreement may be subject to termination in accordance with Article X.
F. No Federal funds may be used to meet the Sponsor's share of Study Costs unless the Federal
granting agency verifies in writing that the expenditure of such funds is expressly authorized by
statute.
G. The award and management of any contract with a third party in furtherance of this
Agreement which obligates Federal appropriations shall be exclusively within the control of the
Government. The award and management of any contract by the Sponsor with a third party in
furtherance of this Agreement which obligates funds of the Sponsor and does not obligate
Federal appropriations shall be exclusively within the control of the Sponsor, but shall be subject
to applicable Federal laws and regulations.
ARTICLE III-METHOD OF PAYMENT
A. The Government shall maintain current records of contributions provided by the parties,
current projections of Study Costs, current projections of each party's share of Study Costs, and
current projections of the amount of Study Costs that will result in excess Study Costs. At least
quarterly, the Government shall provide the Sponsor a report setting forth this information. As of
the effective date of this Agreement, estimated Study Costs are $2,541,000 and the Sponsor's
share of estimated Study Costs is $1,270,500. In order to meet the Sponsor's cash payment
requirements for its share of estimated Study Costs, the Sponsor must provide a cash contribution
currently estimated to be $1,013,500. The dollar amounts set forth in this Article are based upon
the Government's best estimates, which reflect the scope of the study described in the PMP,
projected costs,price-level changes, and anticipated inflation. Such cost estimates are subject to
adjustment by the Government and are not to be construed as the total financial responsibilities
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of the Government and the Sponsor.
B. The Sponsor shall provide its cash contribution required under Article II.B. of this Agreement
in accordance with the following provisions:
1. For purposes of budget planning, the Government shall notify the Sponsor by 31 May
of each year of the estimated funds that will be required from the Sponsor to meet the Sponsor's
share of Study Costs for the upcoming fiscal year.
2. No later than 60 calendar days prior to the scheduled date for the Government's
issuance of the solicitation for the first contract for the Study or for the Government's anticipated
first significant in-house expenditure for the Study, the Government shall notify the Sponsor in
writing of the funds the Government determines to be required from the Sponsor to meet its
required share of Study Costs for the first fiscal year of the Study. No later than 30 calendar days
thereafter, the Sponsor shall provide an electronic funds transfer in accordance with procedures
established by the Government, or by delivering a check payable to "FAO, USAED, Los Angeles
- District" to the District Engineer.. -
3. For the second and subsequent fiscal years of the Study, the Government shall,no later
than 60 calendar days prior to the beginning of the fiscal year,notify the Sponsor in writing of
the funds the Government determines to be required from the Sponsor to meet its required share
of Study Costs for that fiscal year, taking into account any temporary divergences identified
under Article ED of this Agreement. No later than 30 calendar days prior to the beginning of the
fiscal year, the Sponsor shall make the full amount of the required funds available to the
Government through the funding mechanism specified in paragraph B.2. of this Article.
4. The Government shall draw from the funds provided by the Sponsor such sums as the
Government deems necessary to cover the Sponsor's share of contractual and in-house fiscal
obligations attributable to the Study as they are incurred.
5. In the event the Government determines that the Sponsor must provide additional
funds to meet its share of Study Costs, the Government shall so notify the Sponsor in writing.
No later than 60 calendar days after receipt of such notice, the Sponsor shall make the full
amount of the additional required funds available through the funding mechanism specified in
paragraph B.2. of this Article.
C. Within ninety(90) days after the conclusion of the Study Period or termination of this
Agreement, the Government shall conduct a final accounting of Study Costs, including
disbursements by the Government of Federal funds, cash contributions by the Sponsor, the
amount of any excess Study Costs, and credits for the negotiated costs of the Sponsor, and shall
furnish the Sponsor with the results of this accounting. Within thirty(30) days thereafter, the
Government, subject to the availability of funds, shall reimburse the Sponsor for the excess, if
any, of cash contributions and credits given over its required share of Study Costs, other than
excess Study Costs, or the Sponsor shall provide the Government any cash contributions required
for the Sponsor to meet its required share of Study Costs other than excess Study Costs.
D. The Sponsor shall provide its cash contribution for excess Study Costs as required under
Article II.C. of this Agreement by the electronic funds transfer procedure established by USACE
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Finance Center, or by delivering a check payable to "FAO,USAED, Los Angeles District" to the
District Engineer as follows:
1. After the project that is the subject of this Study has been authorized for construction,
no later than the date on which a Project Cooperation Agreement is entered into for the project;
or
2. In the event the project that is the subject of this Study is not authorized for
construction by a date that is no later than 5 years of the date of the final report of the Chief of
Engineers concerning the project,or by a date that is no later than 2 years after the date of the
termination of the study, the Sponsor shall pay its share of excess costs on that date (5 years after
the date of the Chief of Engineers or 2 years after the date of the termination of the study).
ARTICLE IV - STUDY MANAGEMENT AND COORDINATION
A. To provide for consistent and effective communication,the Sponsor and the Government
-hall appoin.tnamed senior representatives to an Executive Committee. The Executive
Committee shall include the District Commander, Deputy District Engineer, and Chief of
Planning, Los Angeles District, and officials selected by the Sponsor. Thereafter,the Executive
Committee shall meet regularly until the end of the Study Period.
B. Until the end of the Study Period, the Executive Committee shall generally oversee the Study
consistently with the PMP.
C. The Executive Committee may make recommendations that it deems warranted to the District
Engineer on matters that it oversees, including suggestions to avoid potential sources of dispute.
The Government in good faith shall consider such recommendations. The Government has the
discretion to accept, reject, or modify the Executive Committee's recommendations.
D. The Executive Committee shall appoint representatives to serve on a Study Management
Team. The Study Management Team shall keep the Executive Committee informed of the
progress of the Study and of significant pending issues and actions, and shall prepare periodic
reports on the progress of all work items identified in the PMP.
E. The costs of participation in the Executive Committee (including the cost to serve on the
Study Management Team) shall be included in total project costs and cost shared in accordance
with the provisions of this Agreement.
ARTICLE V - DISPUTES
As a condition precedent to a party bringing any suit for breach of this Agreement, that party
must first notify the other party in writing of the nature of the purported breach and seek in good
faith to resolve the dispute through negotiation. If the parties cannot resolve the dispute through
negotiation, they may agree to a mutually acceptable method of non-binding alternative dispute
resolution with a qualified third party acceptable to both parties. The parties shall each pay 50
percent of any costs for the services provided by such a third party as such costs are incurred.
Such costs shall not be included in Study Costs. The existence of a dispute shall not excuse the
parties from performance pursuant to this Agreement.
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ARTICLE VI-MAINTENANCE OF RECORDS
A. Within 60 days of the effective date of this Agreement, the Government and the Sponsor shall
develop procedures for keeping books, records, documents, and other evidence pertaining to
costs and expenses incurred pursuant to this Agreement to the extent and in such detail as will
properly reflect total Study Costs. These procedures shall incorporate, and apply as appropriate,
the standards for financial management systems set forth in the Uniform Administrative
Requirements for Grants and Cooperative Agreements to state and local governments at 32
C.F.R. Section 33.20. The Government and the Sponsor shall maintain such books, records,
documents, and other evidence in accordance with these procedures for a minimum of three years
after completion of the Study and resolution of all relevant claims arising therefrom. To the
extent permitted under applicable Federal laws and regulations, the Government and the Sponsor
shall each allow the other to inspect such books, documents, records, and other evidence.
B. In acccrdance with 31 U.S.C. Section 7503, the_Government.may conduct audits in addition
to any audit that the Sponsor is required to conduct under the Single Audit Act of 1984, 31
U.S.C. Sections 7501-7507. Any such Government audits shall be conducted in accordance with
Government Auditing Standards and the cost principles in OMB Circular No. A-87 and other
applicable cost principles and regulations. The costs of Government audits shall be included in
total Study Costs and shared in accordance with the provisions of this Agreement.
ARTICLE VII - RELATIONSHIP OF PARTIES
The Government and the Sponsor act in independent capacities in the performance of their
respective rights and obligations under this Agreement, and neither is to be considered the
officer, agent, or employee of the other.
ARTICLE VIII- OFFICIALS NOT TO BENEFIT
No member of or delegate to the Congress, nor any resident commissioner, shall be admitted to
any share or part of this Agreement, or to any benefit that may arise therefrom.
ARTICLE IX - FEDERAL AND STATE LAWS
In the exercise of the Sponsor's rights and obligations under this Agreement, the Sponsor agrees
to comply with all applicable Federal and State laws and regulations, including Section 601 of
Title VI of the Civil Rights Act of 1964 (Public Law 88-352) and Department of Defense
Directive 5500.11 issued pursuant thereto and published in 32 C.F.R. Part 195, as well as Army
Regulations 600-7, entitled "Nondiscrimination on the Basis of Handicap in Programs and
Activities Assisted or Conducted by the Department of the Army".
ARTICLE X - TERMINATION OR SUSPENSION
A. This Agreement shall terminate at the conclusion of the Study Period, and neither the
Government nor the Sponsor shall have any further obligations hereunder, except as provided in
Article III.C.; provided, that prior to such time and upon thirty (30) days written notice, either
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party may terminate or suspend this Agreement. In addition, the Government shall terminate this
Agreement immediately upon any failure of the parties to agree to extend the study under Article
II.E. of this agreement, or upon the failure of the sponsor to fulfill its obligation under Article III.
of this Agreement. In the event that either party elects to terminate this Agreement,both parties
shall conclude their activities relating to the Study and proceed to a final accounting in
accordance with Article III.C. and BID. of this Agreement. Upon termination of this Agreement,
all data and information generated as part of the Study shall be made available to both parties.
B. Any termination of this Agreement shall not relieve the parties of liability for any obligations
previously incurred,
including the costs of closing out or transferring any existing contracts.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement, which shall become
effective upon the date it is signed by the District Engineer for the U.S. Army Corps of
Engineers, Los Angeles District.
DEPARTMENT OF THE ARMY CITY 0' : • •
BY l�� BY SAL.
Richard G. Thomps.i `lug Dancs, P.E.
Colonel, Corps of Engineers Director of Public Works
District Engineer
Los Angeles District
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STATE OF CALIFORNIA
STANDARD AGREEME1 f •
• STD. 213 (NEW 02/98)
AGREEMENT NUMBER
00- 300 -612
1. This Agreement is entered into between the State Agency and the Contractor named below
STATE AGENCY'S NAME
Department of Boating and Waterways
CONTRACTOR'S NAME
City of Seal Beach (City)
2. The term of this
Agreement is: 04/01/01 to 06/30/04
3. The maximum amount $ 113,750
of this Agreement is: One Hundred Thirteen Thousand Seven Hundred Fifty Dollars
4. The parties agree to comply with the terms and conditions of the following exhibits which are by this reference made
a part of the Agreement:
Exhibit A — Scope of Work and Payment Page 1
Exhibit B — None
* Exhibit C — General Terms and Conditions GTC
*View at www.dgs.ca.gov /contacts
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.
CONTRACTOR
CALIFORNIA
Department of General
Services
Use Only
CONTRACTOR'S NAME (If other than an individual, state whether a corporation, partnership, etc.
City of Seal Beach (City)
BY (Authorized Signature)
DATE SIGNED) .
PRINTED NAME AND TITLE OF PERSON SIGNING
John B. Bahorski, City Manager
ADDRESS
211 Eighth Street
Seal Beach, California 90740 - 6379
STATE OF CALIFORNIA
AGENCY NAME
Department of Boating and Waterways
BY (Authorized Signature
Aro
DATE SIGNED
PRINTED NAME AND TITLE OF PERSON SIGNING
Raynor Tsuneyoshi, Director
ADDRESS
2000 Evergreen Street, Suite 100, Sacramento, CA 95815 -3888
Exempt per
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Exhibit A
Scope of Work
•
Funds available from the Public Beach Restoration Funds will help
pay for a portion of the City's share of the U.S. Army Corps of
Engineers', Surfside Beach Feasibility Study. The purpose of the study is
to document existing site processes, identify and delineate the extent of
shoreline problem areas, and to formulate and evaluate potential solutions.
The study is scheduled to begin in spring of 2001.
Payment Provision
The U.S. Army Corps of Engineers requires upfront payment, from
the nonfederal sponsor, before work can commence on coastal studies and
projects. Therefore local assistance funds will be advanced to the City
based upon the scheduled need for funds required in that fiscal year. The
Department agrees to advance to the City, upon receipt of an invoice in
duplicate, for study or construction costs rendered under this Agreement.
Payment shall be advanced, contingent upon an invoice received and
approved by the designated representatives(s). The invoice must be
submitted on the City's letterhead signed by authorized representative and
include:
• Agreement number
• Time period covered
• Description of work to be completed for that period
Submit invoices to:
Department of Boating and Waterways
2000 Evergreen Street, Suite 100
Sacramento, CA 95815 — 3888
Attention: Kim Sterrett.
II Douglas Danes is designated as the City's Program Manager for this
agreement.
III The City shall submit to the DEPARTMENT within one hundred twenty
(120) days of completion of the beach nourishment portion project an
accounting of the funds utilized by the City.
IV In the event the project is not completed by June 30, 2004, the City, or its
successor in interest, shall diligently pursue refund of any unexpended
money to the Department.
•
Budget:
Exhibit B
Project Budget
•
Survey and Mapping 300,000
Coastal Studies / Report 400,000
Geotechnical Studies / Report 100,000
Engineering and Design Analysis / Report 200,000
Socioeconomic Studies 100,000
Real Estate Analysis / Report 40,000
Environmental Studies / Report 200,000
Fish and Wildlife Coordination Act Report 30,000
HTRW Studies / Report 10,000
Cultural Resources Studies / Report 30,000
Cost Estimates 40,000
Public Involvement Documentation 90,000
Plan Formulation and Evaluation 100,000
Final Report Documentation 85,000
Technical Review Documents 85,000
Washington Level Report Approval (Review /Support) 50,000
Project Management and Budget Documents 140,000
Supervision and Administration 210,000
Contingencies 231,000
Project Management Plan (PMP) 50,000
PED Cost Sharing Agreement 50.000
Total $2,541,500
Cost — Share Analysis
Federal Funds Required:
Nonfederal Required:
1,270,500
1.270.500
Total $2,541,500
CDBW's Public Beach Restoration Fund award for Seal Beach, FY 2000 -01 (1)
$113,750
(1) Maximum funding per H &NC Section 69.6 (4) equals 85% of the
nonfederal cost.
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CCC201
CERTIFICATION
•
I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to
legally bind the prospective Contractor to the clause(s) listed below. This certification is made under the laws
of the State of California.
Contractor /Bidder Firm Name (Printed)
Federal ID Number •
By (Authorized Signature)
Printed Name and Title of Person Signing
Date Executed
Executed in the County of
CONTRACTOR CERTIFICATION CLAUSES
1. STATEMENT OF COMPLIANCE: Contractor has, unless exempted, complied with the
nondiscrimination program requirements. (GC 12990 (a -f) and CCR, Title 2, Section 8103) (Not applicable
to public entities.)
2. DRUG -FREE WORKPLACE REQUIREMENTS: Contractor will comply with the requirements of the
Drug -Free Workplace Act of 1990 and will provide a drug -free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession
or use of a controlled substance is prohibited and specifying actions to be taken against employees for
violations.
b. Establish a Drug -Free Awareness Program to inform employees about:
1) the dangers of drug abuse in the workplace;
2) the person's or organization's policy of maintaining a drug -free workplace;
3) any available counseling, rehabilitation and employee assistance programs; and,
4) penalties that may be imposed upon employees for drug abuse violations.
c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug -free workplace policy statement; and,
2) agree to abide by the terms of the company's statement as a condition of employment on theAgreement.
Failure to comply with these requirements may result in suspension of payments under the Agreement or
termination of the Agreement or both and Contractor may be ineligible for award of any future State
agreements if the department determines that any of the following has occurred: (I) the Contractor has made
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Page 2 of 3
false certification, or violated thertification by failing to carry out the requirements as noted above. (GC
8350 et seq.)
3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Contractor certifies that no more than
one (1) final unappealable finding of contempt of court by a Federal court has been issued against Contractor
within the immediately preceding two -year period because of Contractor's failure to comply with an order of
a Federal court which orders Contractor to comply with an order of the National Labor Relations Board.
(PCC 10296) (Not applicable to public entities.)
4. UNION ORGANIZING Contractor hereby certifies that no request for reimbursement, or payment under
this agreement, will seek reimbursement for costs incurred to assist, promote or deter union organizing.
DOING BUSINESS WITH THE STATE OF CALIFORNIA
The following laws apply to persons or entities doing business with the State of California.
1. CONFLICT OF INTEREST: Contractor needs to be aware of the following provisions regarding current
or former state employees. If Contractor has any questions on the status of any person rendering services or
involved with the Agreement, the awarding agency must be contacted immediately for clarification.
Current State Employees (PCC 10410):
1). No officer or employee shall engage in any employment, activity or enterprise from which the officer or
employee receives compensation or has a financial interest and which is sponsored or funded by any state
agency, unless the employment, activity or enterprise is required as a condition of regular state employment.
2). No officer or employee shall contract on his or her own behalf as an independent contractor with any state
agency to provide goods or services.
Former State Employees (PCC 10411):
1). For the two -year period from the date he or she left state employment, no former state officer or
employee may enter into a contract in which he or she engaged in any of the negotiations, transactions,
planning, arrangements or any part of the decision - making process relevant to the contract while employed
in any capacity by any state agency.
2). For the twelve -month period from the date he or she left state employment, no former state officer or
employee may enter into a contract with any state agency if he or she was employed by that state agency in a
policy - making position in the same general subject area as the proposed contract within the 12 -month period
prior to his or her leaving state service.
If Contractor violates any provisions of above paragraphs, such action by Contractor shall render this
Agreement void. (PCC 10420)
Members of boards and commissions are exempt from this section if they do not receive payment other than
payment of each meeting of the board or commission, payment for preparatory time and payment for per
diem. (PCC 10430 (e))
2. LABOR CODE/WORKERS' COMPENSATION: Contractor needs to be aware of the provisions which
require every employer to be insured against liability for Worker's Compensation or to undertake self -
insurance in accordance with the provisions, and Contractor affirms to comply with such provisions before
commencing the performance of the work of this Agreement. (Labor Code Section 3700)
3. AMERICANS WITH DISABILITIES ACT: Contractor assures the State that it complies with the
Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as
well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)
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4. CONTRACTOR NAME CHANGE: An amendment is required to change the Contractor's name as listed
on this Agreement. Upon receipt of legal documentation of the name change the State will process the
amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said
amendment.
5. CORPORATE QUALIFICATIONS TO DO BUSINESS IN CALIFORNIA:
a. When agreements are to be performed in the state by corporations, the contracting agencies will be
verifying that the contractor is currently qualified to do business in California in order to ensure that all
obligations due to the state are fulfilled.
b. "Doing business" is defined in R &TC Section 23101 as actively engaging in any transaction for the
purpose of financial or pecuniary gain or profit. Although there are some statutory exceptions to taxation,
rarely will a corporate contractor performing within the state not be subject to the franchise tax.
c. Both domestic and foreign corporations (those incorporated outside of California) must be in good
standing in order to be qualified to do business in California. Agencies will determine whether a corporation
is in good standing by calling the Office of the Secretary of State.
6. RESOLUTION: A county, city, district, or other local public body must provide the State with a copy of a
resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into
an agreement, authorizing execution of the agreement.
7. AIR OR WATER POLLUTION VIOLATION: Under the State laws, the Contractor shall not be: (1) in
violation of any order or resolution not subject to review promulgated by the State Air Resources Board or
an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to
Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or
(3) finally determined to be in violation of provisions of federal law relating to air or water pollution.
8. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all contractors that are not
another state agency or other government entity.
file: / /C: \WINDOWS \TEMP \CCC201.htm 06/13/2001