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HomeMy WebLinkAbout1994-285 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 l....f~ 1 RESOLUTION NO. q4-?R5 2 3 4 51 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING AGREEMENTS BETWEEN THE CITY OF SAN BERNARDINO AND THE ORGANIZATIONS IDENTIFIED IN THE 1994-1995 MID-YEAR COMMUNITY DEVELOPMENT BLOCK GRANT FINAL STATEMENT OF OBJECTIVES AND PROJECTED USE OF FUNDS APPROVED BY THE COMMON COUNCIL ON SEPTEMBER 19, 1994. 6 7 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE 8 CITY OF SAN BERNARDINO AS FOLLOWS: 9 SECTION 1. (a) The Mayor and City Clerk of the City of San Bernardino is hereby authorized and directed to execute, on behalf of the City, an agreement for Community Development Block Grant funding with the approved organizations identified in the 1994-1995 Mid-Year Community Development Block Grant Final Statement of Objectives and Projected Use of Funds, which is attached hereto as Exhibit "B". SECTION 2. (b) The authorization to execute the above referenced agreements is rescinded if the parties to the agreement fail to execute it within ninety (90) days of the passage of this Resolution. III III III III III III 1949SlTllcl.ftl~cl''') II 'I' 94-285 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF CDBG FUNDING AGREEMENTS BETWEEN THE CITY AND THE ORGANIZATIONS IDENTIFIED IN THE 1994-1995 MID-YEAR COMMUNITY DEVELOPMENT BLOCK GRANT FINAL STATEMENT OF OBJECTIVES AND PROJECTED USE OF FUNDS. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the regular Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the 19th day of September 1994, by the following vote, to wit: COUNCILMEMBERS ~ ~ ABSTAIN ABSENT NEGRETE --'L CURLIN x HERNANDEZ x OBERHELMAN x DEVLIN x POPE-LUDLAM ~ MILLER ----'L ~~ 19 20 21 22 23 24 25 26 27 28 The foregoing resolution Is hereby approved this ~ day of September, 1994. ~~" / C':JYvl MLV\ TOM MINOR, Mayor - City of San Bernardino Approved as to lorm and legal content. JAMES F. PENMAN City Attorney ~ l.:ML:CD \9495m1dne(dl.} 94-285 AGREEMENT THIS AGREEMENT is entered into effective as of the . at San Bernardino, California, between the CITY OF SAN BERNARDINO, a municipal corporation, referred to as "City", and People's Choice. a nonprofit community service organization, referred to as "Subrecipient". City and Subrecipient agree as follows: 1. RECITALS (a) Subrecipient has requested financial assistance from City for fiscal year 1994/1995 from funds available through the U.S. Department of Housing and Urban Development-Community Development Block Grant Program. (b) Subrecipient represents that the expenditures authorized by this Agreement are for the Pro;rram Administration which is a valid and eligible community development purposes, as defined in CFR Part 570 in accordance with federal law and regulations, and that all funds granted under this Agreement will be used for no purpose other than those purposes specifically authorized. The specific purposes and scope of services of this particular grant are set forth in Exhibit "A", attached hereto and incorporated into this Agreement as though fully set forth herein. Proposal application which defines the scope of services has also been attached as a supplemental reference. ( c) Subrecipient will comply with applicable uniform administrative requirements, as described in 24 CPR, Part 570.502. (d) Subrecipient will carry out each activity, program and/or project in compliance with all federal laws and regulations as set forth in 24 CPR, Part 570, with the following exceptions, (i) the Subrecipient does not assume the environmental responsibilities ofthe Grantee as described in 24 CPR, Part 570.604, and; (ii) the Subrecipient does not assume the Grantee's responsibilities for initiating the review process under Executive Order Number 12372. (e) Subrecipient will comply with the requirements set forth in the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970, as amended, (URA), 49 CPR, Part 24 in accordance with federal regulations when attempting to or acquiring any building or parcel ofland. Subrecipient will be required to obtain written approval from the Executive Director of the Development Department prior to any activity taking place within the confines ofURA 49 CPR, Part 24, as amended. 1 City of San BernardinolDevelopment Department . Agreement - CDBG October 18, 1994 94 285 2.' PAYMENTS City shall reimburse Subrecipient for allowable costs incurred under the scope of this Agreement and applicable federal regulations, which have not been paid for or reimbursement will be made at least on a montWy basis, with the total ofall such reimbursements not to exceed S 13.993 . Changes or modifications to the identified scope of services or term of agreement will not be allowed without written consent of the Executive Director of the Development Department of the City of San Bernardino, or designee. 3. TERM This Agreement shall commence November I, 1994, and terminate June 30, 1995. 4. USE OF FUNDS: BUDGET: TRAVEL LIMITATION ( a) The funds paid to Subrecipient shall be used by it solely for the purposes set forth in Paragraph 1 (b) of this Agreement, and in accordance with the program budget submitted by Subrecipient to the City of San Bernardino Development Department, a copy of which is attached to this Agreement as Exhibit "B". The comprehensive budget, included in the application, shall list all sources of funding for the program covered by this Agreement, whether from State, Federal, local or private sources, and shall identifY which sources are paying for which specific portions of the program, by line-item, to the extent practicable. (b) No travel expenses for out-of-state travel shall be included in this program unless specifically listed in the budget as submitted and approved, and all travel expenses to be funded from fund provided hereunder shall be specifically identified as travel expense, which shall be negotiated between the City of San Bernardino Development Department and Subrecipient as listed in the budget. Any travel expenses incurred by Subrecipient above the budgeted amount or for out-of-state travel shall not be eligible for reimbursement unless the prior written approval of the Executive Director of the Development Department of the City of San Bernardino, or designee, has been obtained. (c) Funds shall be used for purposes authorized by the Community Development Block Grant Program only, and no portion of the funds granted hereby shall be used for any purpose not specifically authorized by.this Agreement. (d) Only net payroll shall be periodically reimbursed by City as an allowable cost. Any amounts withheld by Subrecipient from an employee's pay for taxes, social security, or other 2 , City o( San BemardinolDevelopment Department Agreement - CDBG October 18, 1994 94 285 withholdings and not actually paid over to another entity, shall not be included as wages or expenses eligible for reimbursement as an allowable cost until such time as the withheld taxes, social security, or other withholding are immediately paid over to another entity entitled to such payment. Upon such payment and the submission of evidence of such payment to the City of San Bernardino Development Department, such expenses shall be regarded as an allowable cost, and the City shall reimburse Subrecipient for such obligation. ( e) Subrecipient shall be allowed, with the prior written approval to the budget during the first three (3) quarters of the fiscal year, so long as Subrecipient is in compliance with Section "2" of this Agreement at the time of submission of the budget modification request. A variation in the itemization of costs, as set forth in the proposed budget submitted to City, not to exceed ten percent (10%) shall be allowed, provided that the prior written approval of the Executive Director of the Development Department of the City of San Bernardino is obtained, it being understood that the total amount of the grant shall not be varied thereby. (f) The parties intend that grant funds be utilized within the time period covered by this Agreement, and entitlement to any funds not expended or obligated shall revert to the City. No reserve for the future shall be established with the fund except as may be authorized to meet commitments made for services provided during the period of this Agreement, but not yet paid for at the conclusion of this Agreement. (g) Subrecipient shall remain in compliance with all state, federal and local laws prior to the receipt of any reimbursement hereunder. This includes, but is not limited to, all laws and regulations relative to the form of organization, local business licenses and any laws and regulations specific to the business and activity carried out by Subrecipient. Reimbursement shall not be made to Subrecipient which is not operating in compliance with all applicable laws. Reimbursements may be subsequently paid, at the direction of the Executive Director of the Development Department for reimbursement costs incurred during the period when compliance is achieved before expiration of this Agreement. 3 City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 94 285 5. ACCOUNTING:AUDIT (a) Prior to the final payment under this Agreement, and at such other times as may be requested by the Executive Director of the Development Department of the City of San Bernardino, Subrecipient shall submit to the Director an accounting of the proposed and actual expenditures of all revenues from whatever source accruing to the organization for the fiscal year ending June 30, 1995. (b) Financial records shall be maintained by Subrecipient in accordance with Generally Accepted Accounting Principles, and in a manner which permits City to trace the expenditures offunds to source documentation. All books and records of Subrecipient are to be kept open for inspection at any time during the business day by the City, its officers or agents, and by any representative of the United States Department of Housing and Urban Development authorized to audit Community Development Block Grant programs. ( c) Standards for financial management systems and financial reporting requirements established by 24 CFR, Parts 85.20 and 85.22 shall be fully complied with by Subrecipient. Subrecipient acknowledges that the funds provided are federal funds. (d) Subrecipient's financial management system shall provide for accurate, current and complete disclosure of the financial results of each program sponsored by this Agreement. It is the responsibility of Subrecipient to adequately safeguard all assets of the program, and Subrecipient shall assure that they are used solely for authorized purposes. ( e) Subrecipient will be required to submit an audited financial statement during the monitoring visit by the City. 6. SERVICES AVAILABLE TO RESIDENTS: MONITORING AND REPORTING PROGRAM PERFORMANCE. The services of Subrecipient shall be made available to residents and inhabitants of the City of San Bernardino unless otherwise noted in Exhibit "A". No person shall be denied service because ofrace, color, national origin, creed, religion, sex, marital status, or physical handicap. Subrecipient shall comply with Affirmative Action guidelines in its employment practices. Subrecipient shall also monitor the program's activities and submit written reports quarterly, or more often if requested, to the Executive Director of the Development Department of the City of San Bernardino, in accordance with 24 CFR, Part 85.41 (c)(d) and Part 85.21. Failure to provide such quarterly 4 City ~f San Bemardino/Development Department Agreement - CDBG October 18, 1994 94 2.,85 performance reports may prevent the processing by City of Subrecipient's requests for reimbursement, and may justify temporary withholding as provided for in Paragraph" 1 I" hereof. City reserves the right to waive such breach, without prejudice to any other ofits rights hereunder, upon a finding by the Executive Director of the Development Department that such failure was due to extraordinary circumstances and that such breach has been timely cured without prejudice to the City. 7. PROCUREMENT PRACTICES: CONFLICT OF INTEREST Subrecipient shall comply with procurement procedures and guidelines established by 24 CPR, Part 85.36 (d)(I), Subrecipient "Procurement Standards". In addition to the specific requirements of24 CPR, Part 85, Subrecipient shall maintain a code or standards of conduct which shall govern the performance of its officers, employees or agents in contracting with and expending the federal grant funds made available to Subrecipient under this Agreement. Subrecipient's officers, employees or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or potential contractors. To the extent permissible by state law, rules, and regulations, the standards adopted by Subrecipient shall provide for penalties, sanctions or other disciplinary actions to be applied for violations of such standards by either the Subrecipient's officers, employees or agents, or by contractors or their agents. Subrecipient shall provide a copy of the code or standards adopted to City forthwith. All procurement transactions without regard to dollar value shall be conducted in a manner so as to provide maximum open and free competition. The Subrecipient shall be alert to organizational conflicts of interest or non-competitive practices among contractors which may restrict or eliminate competition or otherwise restrain trade. Subrecipient agrees to adhere to conflict of interest provisions set forth in 24 CFR Section 570.611 and to the procurement rules specified in 24 CPR, Part 85.36, in its expenditure of all funds received under this Agreement. 8. ANTI-KICK BACK PROVISIONS: EOUAL EMPLOYMENT OPPORTUNITY All contracts for construction or repair using funds provided under this Agreement shall include a provision for compliance with the Copeland "Anti-Kick Back" Act (18 U.S.C. 874) as supplemented in Department of Labor Regulations (29 CPR, Part 3). This Act provides that each contractor or subgrantee shall be prohibited from inducing, by any means, any person employed in the construction, completion or repair of public work, to give up any part of the compensation to which he/she is otherwise entitled. Subrecipient shall report all suspected or reported violations to City. All 5 City .of: San Bernardino/Develapment Department Agreement - CDBG October 18, 1994 94 285 contracts in excess of$10,000.00 entered inta by Subrecipient using funds provided under this Agreement shall contain a provision requiring compliance with Equal Emplayment Opportunity provisions established by Executive Order Number 11246, as amended. 9. PREVAILINGWAGEREOUIREMENT Any construction contracts awarded by Subrecipient using funds pravided under this Agreement in excess of $2,000.00 shall include a provision for campliance with the Davis-Bacon Act [40 U.S.C. 276(a) ta 276(a)(7)] and as supplemented by Department .of Labor Regulations (29 CFR). Under this act, contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labar. In addition, cantractars shall place a copy of the current prevailing wage determinatian issued by the Department of Labor in each solicitation and the award ofa contract shall be canditioned upon the acceptance of the wage determination. Subrecipient shall repart all suspected .or reported violations to City. 10. APPROVAL OF CITY OF ANY CHARGES: USE OF PROGRAM INCOME ( a) City hereby requires Subrecipient to notify the City in writing, of its intent to charge a fee for any service, the provision of which is assisted pursuant to the Agreement. City requires Subrecipient to obtain the prior written approval of City for any charges or fees to be charged by Subrecipient for such services, and of any rules and regulations governing the pravisian of services hereunder. (b) Program income represents gross income received by the Subrecipient directly generated from the use affunds provided hereunder. Such earnings include interest earned on advances and may include, but will not be limited to, income from service fees, sale of cammadities, usage and rental fees for real or personal property using the funds pravided by this Agreement. As ta such income, it shall be first applied to eligible program activities, befare requests for reimbursement and, in the use, shall be subject to all applicable provisions .of this Agreement. Income not sa applied shall be remitted to City. Subrecipient shall remit all unspent program income to the City within thirty (30) days subsequent to the end of the program year (June 30, 1995). 6 City p( San BemardinolDevelopment Department Agreement - CDBG October 18, 1994 94 2.85 11. TEMPORARY WITHHOLDING The Executive Director of the Development Department of the City of San Bernardino is authorized to temporarily withhold the payment of funds to Subrecipient when the Director determines that any violation of this Agreement has occurred. Funds shall be withheld until the violation is corrected to the satisfaction of the Executive Director. Subrecipient shall have the right to appeal the decision of the Executive Director to the Mayor and Common Council. The sole grounds for such appeal shall be that no violation of the Agreement has occurred. Subrecipient shall file such appeal within fifteen (15) days after such first withholding. The Mayor and Common Council shall set a date for the hearing of such appeal which is within thirty (30) days following the date of filing. 12. RECORDS RETENTION Financial records, supporting documents, statistical records, and all other records pertaining to the use of the funds provided under this Agreement shall be retained by Subrecipient for a period of three (3) years, at a minimum, and in the event of litigation, claim or audit, the records shall be retained until all litigation, claim or audit findings involving the records, have been fully resolved. Records for non-expendable property acquired with federal funds provided under this Agreement shall be retained for three (3) years after the final disposition of such property. 13. PROPERTY MANAGEMENT STANDARDS Non-expendable personal property, for the purposes of this Agreement, is defined as tangible personal property, purchased in whole or in part with federal funds, which has useful life or more than one (1) year and an acquisition cost of one-thousand dollars ($1,000.00) or more per unit. Real property means land, including land improvements, structures and appurtenances thereto, excluding movable machinery and equipment. Non-expendable personal property and real property purchased with or improved by funds provided under this Agreement shall be subject to the property management standards set forth in 24 CPR, Part 85.32. 14. TERMINATION FOR CAUSE ( a) City reserves the right to terminate this Agreement in accordance with 24 CPR, Part 85.43, and any and all grants and future payments under this Agreement, in whole or in part, at any time before the date of completion of this Agreement whenever City determines that the Subrecipient has materially failed to comply with the terms and conditions of this Agreement. In the event City seeks to 7 City ~( San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 94 285 terminate this Agreement for cause, City shall promptly notify the Subrecipient in writing of the proposed termination and the reasons therefore, together with the proposed effective date. Subrecipient shall be given an opportunity to appear before the Mayor and Common Council at the time at which the Mayor and Common Council are to consider such recommended termination, and shall be given a reasonable opportunity to show cause why, if any exists, the Agreement should not be terminated for cause. Upon determination by the Mayor and Common Council that the contract should be terminated for cause, notice thereof, including reasons for the determination, shall promptly be mailed to the Subrecipient, together with information as to the effective date of the termination. Such notice may be given orally at that hearing. The determination of the Mayor and Common Council as to cause shall be final. (b) In the event of any termination whether for cause or for convenience, Subrecipient shall forthwith provide to the Development Department any and all documentation needed by the Development Department to establish a full record of all monies received by Subrecipient and to document the uses of same. 15. TERMINATION FOR CONVENIENCE City or Subrecipient may terminate this Agreement in whole or in part provided both parties agree that the continuation of the project would not produce beneficial results commensurate with further expenditure of funds. In such event, the parties shall agree upon the termination conditions, including the effective date and, in the case of partial terminations, the portion to be terminated. The Subrecipient shall not incur new obligations for the terminated portion after the effective date and shall cancel as many outstanding obligations as possible. City shall allow Subrecipient full credit for the City's share of the non-cancelable obligations properly incurred by the Subrecipient prior to termination. 16. REVERSION OF ASSETS Subrecipient agrees that upon expiration of this Agreement, the Subrecipient shall transfer to the City any and all CDBG funds not used at the time of expiration and any accounts receivable attributable to the use of CDBG funds. Subrecipient agrees that any real property under its control, which was acquired or improved, in whole or in part, with CDBG funds in excess of$500.00 shall either, (i) be used to meet one (1) of the three (3) national objectives as set forth in 24 CFR, Part 8 City ,of San Bernardino/Development Department Agreement - CDBG October 18, 1994 94285 570.208 until five (5) years after expiration of the Agreement or such period of time as determined appropriate by the City, or; (ii) is disposed of in a manner which results in the City being reimbursed in the amount of the current fair market value of the property less any portion thereof attributable to expenditure of, or improvement to, the property by Subrecipient. Such reimbursement is not required after the period of time specified in "i" above. 17. CDBG REOUlREMENTS FOR PROPERTIES OWNED BY A RELIGIOUS ENTITY Subrecipient agrees to all conditions and requirements set forth in 24 CFR, Part 570.483, Section (6) (ii) (A) (B) (C) (D) (E) (F) (G) regarding the use ofCDBG funds for the rehabilitation of a building(s) owned primarily by a religious entity. In particular, Subrecipient is apprised of and agrees to the following: A. The leased premises will be used exclusively for secular purposes available to persons regardless of religion; B. The portion of the cost of any improvements that also serve a non-leased part of the building will be allocated to and paid for by the Lessor; C. The Lessor will be required to enter into a binding agreement stating that unless the Lessee (Subrecipient), or a qualified successor Lessee, retains the use of the leased premises for a wholly secular purpose for at least the useful life of the improvements, the Lessor will pay to the Lessee (Subrecipient) an amount equal to the residual value of the improvements. D. The Lessee (Subrecipient) must remit the amount received from the Lessor as indicated above to the City from which the CDBG funds were received. 18. HOLD HARMLESS Subrecipient agrees to indemnify, save and hold harrnless the City and the Development Department and their employees and agents from all liabilities and charges, expenses (including counsel fees), suits or losses, however occurring, or damages, arising or growing out of the use of or receipt of funds paid under this Agreement and all operations under this Agreement. Payments under this 9 i-U I , City Qf'san Bernardino/Development Department I Agreement ~ CDBG I October 18, 1994 94 285 Agreement are made with the understanding that the City and the Development Department are not involved in the performance of services or other activities of the Subrecipient. Subrecipient and its employees and agents are independent contractors and not employees or agents of City and the Development Department. 19. AMENDMENT This Agreement may be amended or modified only by written agreement signed by both parties, and failure on the part of either party to enforce any provision of this Agreement sball not be construed as a waiver of the right to compel enforcement of any provision or provisions. 20. ASSIGNMENT This Agreement sball not be assigned by Subrecipient without the prior written consent of City. 21. NOTICES All notices herein required sball be in writing and delivered in person or sent certified mail, postage prepaid, addressed as follows: AS TO CITY: AS TO SUBRECIPIENT: KENNETH J. HENDERSON Executive Director Development Department Economic Development Agency 201 North "E" Street, Third Floor San Bernardino, California 92401 People's Choice 1505 West Highland Avenue, Suite 1 San Bernardino, CA 92411 22. EVIDENCE OF AUTHORITY Subrecipient shall provide to City evidence in the form of a certified copy of minutes of the governing body of Subrecipient, or other adequate proof, that this Agreement has been approved in all its detail by the governing body of the Subrecipient, that the person( s) executing it are authorized to act on behalf of Subrecipient, and that this Agreement is a binding obligation on Subrecipient. 10 City of 'san BernardinolDevelopment Department Agreement - CDBG October 18, 1994 94 285 23. CERTIFICATION OF ASSURANCE Subrecipient shall comply with the program requirements attached hereto as Exhibit "C", which are incorporated by reference as though fully set forth at length and made a part of this Agreement by execution of all certifications and assurances of the CDBG program. 24. ENTIRE AGREEMENT This Agreement and any document or instrument attached hereto or referred to herein integrates all terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations and prior writing in respect to the subject matter hereof. In the event of conflict between the terms, conditions or provisions of this Agreement, and any such document or instrument, the terms and conditions of the Agreement shall prevail. 25. NO THIRD PARTY BENEFICIARIES No third party shall be deemed to have any rights hereunder against any of the parties hereto as a result of this Agreement. IIII IIII IIII IIII IIII IIII IIII IIII IIII IIII IIII IIII IIII IIII IIII IIII II City of San Bernardino/Develo~~e~n)epartment Agreement - CDBG October 18, 1994 94 285 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first hereinabove written. CITY OF SAN BERNARDINO People's Choice ~~a1~ TOM . OR, Mayor City of San Bernardino 'C::> ~ Cl.~\.~ ~ President/CEO "-.l..LL.(. " ATTEST / .cd ~ RA~ARK, City Clerk City of San Bernardino Approved as to form and legal content: JAMES F. PENMAN, City Attorney By: H~LJ~ / 12 City pf. San Bemardino/Development Department Agreement - CDBG October 18, 1994 94 285 EXHIBIT A!B This program will provide basic reading, writing, arithmetic, and speaking skills, as well as classes in meal planning, budgeting, cooking, gardening, landscaping typing, auto mechanics, electronics and computer skills. Requested funds will be used for program administration. Public Services $ 13,993 Other TOTAL $ 13,993 13 City of San Bemardino/Development Department Agreement - CDBG October 18, 1994 '4 285 Desi Advertisement for Bids Bid 0 en Award of Contract Be . n Construction 50% Construction Com lete Construction 14 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 94 285 EXHIBIT C CITY OF SAN BERNARDINO DEVELOPMENT DEPARTMENT "Certification and Assurance" (To Accompany CDBG Agreement) I, _...1 ~ 'I 0 ('"..-: r 1_ I" I C'- I v-. (~\ :i , of the (NamelUldTitleofOfficial) People's Choice located at (Name of Agem:y/0l:gani2Bli0n) 1505 West Highland Avenue. Suite 1. San Bernardino. California 92411 do hereby (AddressofAgeru:y!Orpnimtion) make the following certification and assurance to accompany the Community Development Block Grant Agreement between People's Choice and the (Name of Agency/Organization) City of San Bernardino: a) CertifY that the information booklet for CDBG Program requirements has been read and understood, and (Name of AgencyIOlpnization) and will comply with all governing requirements as stipulated herewith in the performance of the CDBG Agreement. People's Choice b) Assure that the t;--" ~vU:c..Lt ~. Signature of Official 11- fi. 9t- Date LM:cdbg0002.agr:adw 15 94-285 j~ : ~ ._l:,,-.~.~,_. NCtf :: or 199ft ;'~.'...." ,-.,,, AGREEMENT _.".....-.",..'~..-,." . THIS AGREEMENT is entered into effective as of the . at San Bernardino, California, between the CITY OF SAN BERNARDINO, a municipal corporation, referred to as "City", and Cornerstone Christian Preschool, a nonprofit community service organization, referred to as "Subrecipient". City and Subrecipient agree as follows: 1. RECITALS (a) Subrecipient has requested financial assistance from City for fiscal year 1994/1995 from funds available through the U.S. Department of Housing and Urban Development-Community Development Block Grant Program. (b) Subrecipient represents that the expenditures authorized by this Agreement are for the Subsidized Child Care Program which is a valid and eligible community development purposes, as defined in CFR Part 570 in accordance with federal law and regulations, and that all funds granted under this Agreement will be used for no purpose other than those purposes specifically authorized. The specific purposes and scope of services of this particular grant are set forth in Exhibit "A", attached hereto and incorporated into this Agreement as though fully set forth herein. Proposal application which defines the scope of services has also been attached as a supplemental reference. ( c) Subrecipient will comply with applicable uniform administrative requirements, as described in 24 CFR, Part 570.502. (d) Subrecipient will carry out each activity, program and/or project in compliance with all federal laws and regulations as set forth in 24 CPR, Part 570, with the following exceptions, (i) the Subrecipient does not assume the enviromnental responsibilities of the Grantee as described in 24 CPR, Part 570.604, and; (ii) the Subrecipient does not assume the Grantee's responsibilities for initiating the review process under Executive Order Number 12372. ( e) Subrecipient will comply with the requirements set forth in the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970, as amended, (URA), 49 CPR, Part 24 in accordance with federal regulations when attempting to or acquiring any building or parcel ofland. Sub recipient will be required to obtain written approval from the Executive Director of the Development Department prior to any activity taking place within the confines ofURA 49 CFR, Part 24, as amended. 1 94 285 , . City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 2. PAYMENTS City shall reimburse Subrecipient for allowable costs incurred under the scope of this Agreement and applicable federal regulations, which have not been paid for or reimbursement will be made at least on a monthly basis, with the total of all such reimbursements not to exceed $ 13.000 . Changes or modifications to the identified scope of services or term of agreement will not be allowed without written consent of the Executive Director of the Development Department of the City of San Bernardino, or designee. 3. TERM This Agreement shall commence November 1, 1994, and terminate June 30, 1995. 4. USE OF FUNDS: BUDGET: TRAVEL LIMITATION (a) The funds paid to Subrecipient shall be used by it solely for the purposes set forth in Paragraph 1 (b) ofthis Agreement, and in accordance with the program budget submitted by Subrecipient to the City of San Bernardino Development Department, a copy of which is attached to this Agreement as Exhibit "B". The comprehensive budget, included in the application, shall list all sources of funding for the program covered by this Agreement, whether from State, Federal, local or private sources, and shall identifY which sources are paying for which specific portions of the program, by line-item, to the extent practicable. (b) No travel expenses for out-of-state travel shaIl be included in this program unless specifically listed in the budget as submitted and approved, and all travel expenses to be funded from fund provided hereunder shall be specifically identified as travel expense, which shaIl be negotiated between the City of San Bernardino Development Department and Subrecipient as listed in the budget. Any travel expenses incurred by Sub recipient above the budgeted amount or for out-of-state travel shall not be eligible for reimbursement unless the prior written approval of the Executive Director of the Development Department of the City of San Bernardino, or designee, has been obtained. ( c) Funds shall be used for purposes authorized by the Community Development Block Grant Program only, and no portion of the funds granted hereby shall be used for any purpose not specifically authorized by this Agreement. (d) Only net payroll shall be periodically reimbursed by City as an allowable cost. Any amounts withheld by Subrecipient from an employee's pay for taxes, social security, or other 2 94.285 City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 withholdings and not actuaIly paid over to another entity, shall not be included as wages or expenses eligible for reimbursement as an allowable cost until such time as the withheld taxes, social security, or other withholding are immediately paid over to another entity entitled to such payment. Upon such payment and the submission of evidence of such payment to the City of San Bernardino Development Department, such expenses shall be regarded as an aIlowable cost, and the City shall reimburse Subrecipient for such obligation. ( e) Subrecipient shall be allowed, with the prior written approval to the budget during the first three (3) quarters of the fiscal year, so long as Subrecipient is in compliance with Section "2" of this Agreement at the time of submission of the budget modification request. A variation in the itemization of costs, as set forth in the proposed budget submitted to City, not to exceed ten percent (10%) shall be allowed, provided that the prior written approval of the Executive Director of the Development Department of the City of San Bernardino is obtained, it being understood that the total amount of the grant shall not be varied thereby. (f) The parties intend that grant funds be utilized within the time period covered by this Agreement, and entitlement to any funds not expended or obligated shall revert to the City. No reserve for the future shall be established with the fund except as may be authorized to meet commitments made for services provided during the period of this Agreement, but not y(;:t paid for at the conclusion of this Agreement. (g) Subrecipient shall remain in compliance with all state, federal and local laws prior to the receipt of any reimbursement hereunder. This includes, but is not limited to, all laws and regulations relative to the form of organization, local business licenses and any laws and regulations specific to the business and activity carried out by Sub recipient. Reimbursement shall not be made to Subrecipient which is not operating in compliance with all applicable laws. Reimbursements may be subsequently paid, at the direction of the Executive Director of the Development Department for reimbursement costs incurred during the period when compliance is achieved before expiration of this Agreement. 3 94. 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 5. ACCOUNTING: AUDIT (a) Prior to the final payment under this Agreement, and at such other times as may be requested by the Executive Director of the Development Department of the City of San Bernardino, Subrecipient shall submit to the Director an accounting of the proposed and actual expenditures of all revenues from whatever source accruing to the organization for the fiscal year ending June 30, 1995. (b) Financial records shall be maintained by Subrecipient in accordance with Generally Accepted Accounting Principles, and in a manner which permits City to trace the expenditures of funds to source documentation. All books and records of Subrecipient are to be kept open for inspection at any time during the business day by the City, its officers or agents, and by any representative ofthe United States Department of Housing and Urban Development authorized to audit Community Development Block Grant programs. ( c) Standards for financial management systems and financial reporting requirements established by 24 CPR, Parts 85.20 and 85.22 shall be fully complied with by Subrecipient. Subrecipient acknowledges that the funds provided are federal funds. (d) Subrecipient's financial management system shall provide for accurate, current and complete disclosure of the financial results of each program sponsored by this Agreement. It is the responsibility of Subrecipient to adequately safeguard all assets of the program, and Subrecipient shall assure that they are used solely for authorized purposes. (e) Subrecipient will be required to submit an audited financial statement during the monitoring visit by the City. 6. SERVICES AVAILABLE TO RESIDENTS: MONITORING AND REPORTING PROGRAM PERFORMANCE. The services of Subrecipient shall be made available to residents and inhabitants of the City of San Bernardino unless otherwise noted in Exhibit "A". No person shall be denied service because of race, color, national origin, creed, religion, sex, marital status, or physical handicap. Subrecipient shall comply with Affirmative Action guidelines in its employment practices. Subrecipient shall also monitor the program's activities and submit written reports quarterly, or more often if requested, to the Executive Director of the Development Department of the City of San Bernardino, in accordance with 24 CFR, Part 85.41 (c)(d) and Part 85.21. Failure to provide such quarterly 4 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 performance reports may prevent the processing by City of Subrecipient's requests for reimbursement, and may justifY temporary withholding as provided for in Paragraph" 11" hereof City reserves the right to waive such breach, without prejudice to any other of its rights hereunder, upon a finding by the Executive Director of the Development Department that such failure was due to extraordinary circumstances and that such breach has been timely cured without prejudice to the City._ 7. PROCUREMENT PRACTICES: CONFLICT OF INTEREST Subrecipient shall comply with procurement procedures and guidelines established by 24 CPR, Part 85.36 (d)(I), Subrecipient "Procurement Standards", In addition to the specific requirements of24 CFR, Part 85, Subrecipient shall maintain a code or standards of conduct which shaIl govern the performance of its officers, employees or agents in contracting with and expending the federal grant funds made available to Subrecipient under this Agreement. Subrecipient's officers, employees or agents shaIl neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or potential contractors. To the extent permissible by state law, rules, and regulations, the standards adopted by Subrecipient shall provide for penalties, sanctions or other disciplinary actions to be applied for violations of such standards by either the Subrecipient's officers, employees or agents, or by contractors or their agents. Sub recipient shall provide a copy of the code or standards adopted to City forthwith. All procurement transactions without regard to dollar value shall be conducted in a manner so as to provide maximum open and free competition. The Subrecipient shall be alert to organizational conflicts of interest or non-competitive practices among contractors which may restrict or eliminate competition or otherwise restrain trade. Subrecipient agrees to adhere to conflict of interest provisions set forth in 24 CFR Section 570.611 and to the procurement rules specified in 24 CPR, Part 85.36, in its expenditure of all funds received under this Agreement. 8. ANTI-KICK BACK PROVISIONS: EOUAL EMPLOYMENT OPPORTUNITY All contracts for construction or repair using funds provided under this Agreement shaIl include a provision for compliance with the Copeland "Anti-Kick Back" Act (18 U.S.C. 874) as supplemented in Department of Labor Regulations (29 CFR, Part 3). This Act provides that each contractor or sub grantee shall be prohibited from inducing, by any means, any person employed in the construction, completion or repair of public work, to give up any part of the compensation to which he/she is otherwise entitled. Subrecipient shall report all suspected or reported violations to City. All 5 . 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 contracts in excess of$10,000.00 entered into by Subrecipient using funds provided under this Agreement shall contain a provision requiring compliance with Equal Employment Opportunity provisions established by Executive Order Number 11246, as amended. 9. PREVAILING WAGE REOUIREMENT Any construction contracts awarded by Subrecipient using funds provided under this Agreement in excess of$2,000.00 shall include a provision for compliance with the Davis-Bacon Act [40 U.S.c. 276(a) to 276(a)(7)] and as supplemented by Department of Labor Regulations (29 CFR), Under this act, contractors shaIl be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor. In addition, contractors shall place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation and the award ofa contract shall be conditioned upon the acceptance of the wage determination. Subrecipient shall report all suspected or reported violations to City. 1 O. APPROVAL OF CITY OF ANY CHARGES: USE OF PROGRAM INCOME (a) City hereby requires Subrecipient to notifY the City in writing, ofits intent to charge a fee for any service, the provision of which is assisted pursuant to the Agreement. City requires Subrecipient to obtain the prior written approval of City for any charges or fees to be charged by Subrecipient for such services, and of any rules and regulations governing the provision of services hereunder. (b) Program income represents gross income received by the Subrecipient directly generated from the use of funds provided hereunder. Such earnings include interest earned on advances and may include, but will not be limited to, income from service fees, sale of commodities, usage and rental fees for real or personal property using the funds provided by this Agreement. As to such income, it shall be first applied to eligible program activities, before requests for reimbursement and, in the use, shall be subject to all applicable provisions of this Agreement. Income not so applied shall be remitted to City. Subrecipient shall remit all unspent program income to the City within thirty (30) days subsequent to the end of the program year (June 30, 1995). 6 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 11. TEMPORARY WITHHOLDING The Executive Director of the Development Department of the City of San Bernardino is authorized to temporarily withhold the payment of funds to Subrecipient when the Director determines that any violation of this Agreement has occurred. Funds shall be withheld until the violation is corrected to the satisfaction of the Executive Director. Subrecipient shall have the righUo appeal the decision of the Executive Director to the Mayor and Common Council. The sole grounds for such appeal shall be that no violation of the Agreement has occurred. Subrecipient shall file such appeal within fifteen (15) days after such first withholding. The Mayor and Common Council shall set a date for the hearing of such appeal which is within thirty (30) days following the date of filing, 12. RECORDS RETENTION Financial records, supporting documents, statistical records, and all other records pertaining to the use of the funds provided under this Agreement shall be retained by Subrecipient for a period of three (3) years, at a minimum, and in the event of litigation, claim or audit, the records shall be retained until all litigation, claim or audit findings involving the records, have been fully resolved, Records for non-expendable property acquired with federal funds provided under this Agreement shall be retained for three (3) years after the final disposition of such property. 13. PROPERTY MANAGEMENT STANDARDS Non-expendable personal property, for the purposes of this Agreement, is defined as tangible personal property, purchased in whole or in part with federal funds, which has useful life or more than one (1) year and an acquisition cost of one-thousand dollars ($1,000.00) or more per unit. Real property means land, including land improvements, structures and appurtenances thereto, excluding movable machinery and equipment. Non-expendable personal property and real property purchased with or improved by funds provided under this Agreement shall be subject to the property management standards set forth in 24 CPR, Part 85.32. 14. TERMINATION FOR CAUSE (a) City reserves the right to terminate this Agreement in accordance with 24 CPR, Part 85.43, and any and all grants and future payments under this Agreement, in whole or in part, at any time before the date of completion of this Agreement whenever City determines that the Subrecipient has materially failed to comply with the terms and conditions of this Agreement. In the event City seeks to 7 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 terminate this Agreement for cause, City shall promptly notify the Subrecipient in writing of the proposed termination and the reasons therefore, together with the proposed effective date. Subrecipient shall be given an opportunity to appear before the Mayor and Common Council at the time at which the Mayor and Common Council are to consider such recommended termination, and shall be given a reasonable opportunity to show cause why, if any exists, the Agreement should not be terminated for cause. Upon determination by the Mayor and Common Council that the contract should be terminated for cause, notice thereof, including reasons for the determination, shall promptly be mailed to the Subrecipient, together with information as to the effective date of the termination. Such notice may be given orally at that hearing. The determination of the Mayor and Common Council as to cause shall be final. (b) In the event of any termination whether for cause or for convenience, Subrecipient shall forthwith provide to the Development Department any and all documentation needed by the Development Department to establish a full record of all monies received by Subrecipient and to document the uses of same. 15. TERMINATION FOR CONVENIENCE City or Subrecipient may terminate this Agreement in whole or in part provided both parties agree that the continuation of the project would not produce beneficial results commensurate with further expenditure of funds. In such event, the parties shall agree upon the termination conditions, including the effective date and, in the case of partial terminations, the portion to be terminated. The Subrecipient shall not incur new obligations for the terminated portion after the effective date and shall cancel as many outstanding obligations as possible. City sha11 allow Subrecipient full credit for the City's share of the non-cancelable obligations properly incurred by the Subrecipient prior to termination, 16. REVERSION OF ASSETS Subrecipient agrees that upon expiration of this Agreement, the Subrecipient shall transfer to the City any and all CDBG funds not used at the time of expiration and any accounts receivable attributable to the use of CDBG funds. Subrecipient agrees that any real property under its control, which was acquired or improved, in whole or in part, with CDBG funds in excess of $500.00 shall either, (i) be used to meet one (1) of the three (3) national objectives as set forth in 24 CFR, Part 8 94285 City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 570.208 until five (5) years after expiration of the Agreement or such period oftime as determined appropriate by the City, or; (ii) is disposed of in a manner which results in the City being reimbursed in the amount of the current fair market value of the property less any portion thereof attributable to expenditure of, or improvement to, the property by Subrecipient. Such reimbursement is not required after the period oftime specified in "i" above. 17. CDBG REOUIREMENTS FOR PROPERTIES OWNED BY A RELIGIOUS ENTITY Subrecipient agrees to all conditions and requirements set forth in 24 CPR, Part 570.483, Section (6) (ii) (A) (B) (C) (D) (E) (F) (G) regarding the use ofCDBG funds for the rehabilitation of a building(s) owned primarily by a religious entity. In particular, Subrecipient is apprised of and agrees to the following: A. The leased premises will be used exclusively for secular purposes available to persons regardless of religion; B. The portion of the cost of any improvements that also serve a non-leased part of the building will be allocated to and paid for by the Lessor; C. The Lessor will be required to enter into a binding agreement stating that unless the Lessee (Subrecipient), or a qualified successor Lessee, retains the use of the leased premises for a wholly secular purpose for at least the useful life of the improvements, the Lessor will pay to the Lessee (Subrecipient) an amount equal to the residual value ofthe improvements. D. The Lessee (Subrecipient) must remit the amount received from the Lessor as indicated above to the City from which the CDBG funds were received. 18. HOLD HARMLESS Subrecipient agrees to indemnifY, save and hold harmless the City and the Development Department and their employees and agents from all liabilities and charges, expenses (including counsel fees), suits or losses, however occurring, or damages, arising or growing out of the use of or receipt of funds paid under this Agreement and all operations under this Agreement. Payments under this 9 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 Agreement are made with the understanding that the City and the Development Department are not involved in the performance of services or other activities of the Subrecipient. Subrecipient and its employees and agents are independent contractors and not employees or agents of City and the Development Department. 19. AMENDMENT This Agreement may be amended or modified only by written agreement signed by both parties, and failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of any provision or provisions, 20. ASSIGNMENT This Agreement shall not be assigned by Subrecipient without the prior written consent of City. 21. NOTICES All notices herein required shall be in writing and delivered in person or sent certified mail, postage prepaid, addressed as follows: AS TO CITY: AS TO SUBRECIPIENT: KENNETH 1. HENDERSON Executive Director Development Department Economic Development Agency 201 North "E" Street, Third Floor San Bernardino, California 92401 Cornerstone Christian Preschool 702 West 16th Street San Bernardino, CA 92406 22. EVIDENCE OF AUTHORITY Subrecipient shall provide to City evidence in the form of a certified copy of minutes of the governing body of Subrecipient, or other adequate proof, that this Agreement has been approved in all its detail by the governing body of the Subrecipient, that the person(s) executing it are authorized to act on behalf of Subrecipient, and that this Agreement is a binding obligation on Subrecipient. 10 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 23. CERTIFICATION OF ASSURANCE Subrecipient shall comply with the program requirements attached hereto as Exhibit "C", which are incorporated by reference as though fully set forth at length and made a part of this Agreement by execution of all certifications and assurances of the CDBG program. 24, ENTIRE AGREEMENT This Agreement and any document or instrument attached hereto or referred to herein integrates all terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations and prior writing in respect to the subject matter hereof. In the event of conflict between the terms, conditions or provisions of this Agreement, and any such document or instrument, the terms and conditions ofthe Agreement shall prevail. 25. NO THIRD PARTY BENEFICIARIES No third party shall be deemed to have any rights hereunder against any of the parties hereto as a result ofthis Agreement. lIlt lIlt lIlt lIlt lIlt fIll fIll lIlt lIlt fIll lIlt lIlt lIlt lIlt lIlt //// 11 94-285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first hereinabove written, CITY OF SAN BERNARDINO rnmp:r~tnnp. rhriq,ti~n Prp:q,(':hnnl ~~~ TOM MINOR, Mayor City of San Bernardino Id:<~v%ur~ resident/CEO ATTEST ~:t,1 J-.- W7--- Secre ~ARK~ City of San Bernardino '. Approved as to form and legal content: JAMES F. PENMAN, City Attorney By: aVn;j/2~ / 12 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 EXHIBIT A!B This program provides preschool, after school, and kindergarten child care services. Requested funds will be used for salaries, supplies, utilities, insurance and lease payments. Ilitillllllllliili. Public Services $ 13,000 rovements Other TOTAL $ 13,000 13 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 1'lrj!Jr~!Pw..,. Desi Advertisement for Bids Bid 0 en Award of Contract Be in Construction 50% Construction Com lete Construction 14 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 EXHIBIT C CITY OF SAN BERNARDINO DEVELOPMENT DEPARTMENT "Certification and Assurance" (To Accompany CDBG Agreement) I, Larine Harqrave, Administrator , of the (NlIme and TtIle ofOfIicW) located at Cornerstone Christian Preschool (Name of Agency/OJgani7ation) 702 West 16th Street. San Bernardino. California 92406 do hereby (AddIess of AgeneyIOIganization) make the following certification and assurance to accompany the Community Development Block Grant Agreement between Cornerstone Christian Preschool and the (Name of Agency/Organization) City of San Bernardino: a) CertifY that the information booklet for CDBG Program requirements has been read and understood, and b) Assure that the Cornerstone Christian Preschool (Name of Agency/Organization) and will comply with all governing requirements as stipulated herewith in the performance of the CDBG Agreement. v /1-3 - 9-</ . n-& ignature of Official Date LM:cdbgOOOl.agr:adw 15 r--------- 94-285 AGREEMENT THIS AGREEMENT is entered into effective as of the . at San Bernardino, California, between the CITY OF SAN BERNARDINO, a municipal corporation, referred to as "City", and Kids Against C:ime, a nonprofit community service organization, referred to as "Subrecipient". City and Subrecipient agree as follows: 1. RECITALS (a) Subrecipient has requested financial assistance from City for fiscal year 1994/1995 from funds available through the U.S. Department of Housing and Urban Development-Community Development Block Grant Program. (b) Subrecipient represents that the expenditures authorized by this Agreement are for the Program Administration which is a valid and eligible community development purposes, as defined in CFR Part 570 in accordance with federal law and regulations, and that all funds granted under this Agreement will be used for no purpose other than those purposes specifically authorized. The specific purposes and scope of services of this particular grant are set forth in Exhibit" A", attached hereto and incorporated into this Agreement as though fully set forth herein, Proposal application which defines the scope of services has also been attached as a supplemental reference. (c) Subrecipient will comply with applicable uniform administrative requirements, as described in 24 CPR, Part 570.502. (d) Subrecipient will carry out each activity, program and/or project in compliance with all federal laws and regulations as set forth in 24 CFR, Part 570, with the following exceptions, (i) the Subrecipient does not assume the enviromnental responsibilities of the Grantee as described in 24 CPR, Part 570,604, and; (ii) the Subrecipient does not assume the Grantee's responsibilities for initiating the review process under Executive Order Number 12372, ( e) Subrecipient will comply with the requirements set forth in the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970, as amended, (URA), 49 CPR, Part 24 in accordance with federal regulations when attempting to or acquiring any building or parcel of/and, Subrecipient will be required to obtain written approval from the Executive Director of the Development Department prior to any activity taking place within the confines ofURA 49 CPR, Part 24, as amended. 1 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 2. PAYMENTS City shaIl reimburse Subrecipient for allowable costs incurred under the scope of this Agreement and applicable federal regulations, which have not been paid for or reimbursement will be made at least on a monthly basis, with the total of all such reimbursements not to exceed $ 20.000 . Changes or modifications to the identified scope of services or term of agreement will not be aIlowed without written consent of the Executive Director of the Development Department of the City of San Bernardino, or designee. 3, TERM This Agreement shall commence November 1, 1994, and terminate June 30, 1995. 4, USE OF FUNDS: BUDGET: TRAVEL LIMITATION (a) The funds paid to Subrecipient shall be used by it solely for the purposes set forth in Paragraph 1 (b) of this Agreement, and in accordance with the program budget submitted by Subrecipient to the City of San Bernardino Development Department, a copy of which is attached to this Agreement as Exhibit "B". The comprehensive budget, included in the application, shall list all sources of funding for the program covered by this Agreement, whether from State, Federal, local or private sources, and shall identifY which sources are paying for which specific portions of the program, by line-item, to the extent practicable. (b) No travel expenses for out-of-state travel shall be included in this program unless specifically listed in the budget as submitted and approved, and all travel expenses to be funded from fund provided hereunder shall be specifically identified as travel expense, which shall be negotiated between the City of San Bernardino Development Department and Subrecipient as listed in the budget. Any travel expense. incurred by Subrecipient above the budgeted amount or for out-of-state travel shall not be eligible for reimbursement unless the prior written approval of the Executive Director of the Development Department of the City of San Bernardino, or designee, has been obtained. (c) Funds shall be used for purposes authorized by the Community Development Block Grant Program only, and no portion ofthe funds granted hereby shall be used for any purpose not specifically authorized by this Agreement. (d) Only net payroll shall be periodically reimbursed by City as an aIlowable cost. Any amounts withheld by Subrecipient from an employee's pay for taxes, social security, or other 2 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 withholdings and not actually paid over to another entity, shall not be included as wages or expenses eligible for reimbursement as an aIlowable cost until such time as the withheld taxes, social security, or other withholding are immediately paid over to another entity entitled to such payment. Upon such payment and the submission of evidence of such payment to the City of San Bernardino Development Department, such expenses shall be regarded as an allowable cost, and the City shaIl reimburse Subrecipient for such obligation. ( e) Subrecipient sha11 be aIlowed, with the prior written approval to the budget during the first three (3) quarters of the fiscal year, so long as Subrecipient is in compliance with Section "2" of this Agreement at the time of submission of the budget modification request. A variation in the itemization of costs, as set forth in the proposed budget submitted to City, not to exceed ten percent (10%) shaIl be aIlowed, provided that the prior written approval of the Executive Director of the Development Department of the City of San Bernardino is obtained, it being understood that the total amount of the grant shall not be varied thereby. (f) The parties intend that grant funds be utilized within the time period covered by this Agreement, and entitlement to any funds not expended or obligated shall revert to the City. No reserve for the future shall be established with the fund except as may be authorized to meet commitments made for services provided during the period of this Agreement, but not yet paid for at the conclusion of this Agreement, (g) Subrecipient shall remain in compliance with all state, federal and local laws prior to the receipt of any reimbursement hereunder. This includes, but is not limited to, all laws and regulations relative to the form of organization, local business licenses and any laws and regulations specific to the business and activity carried out by Subrecipient. Reimbursement shall not be made to Subrecipient which is not operating in compliance with all applicable laws. Reimbursements may be subsequently paid, at the direction of the Executive Director of the Development Department for reimbursement costs incurred during the period when compliance is achieved before expiration of this Agreement. 3 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 5. ACCOUNTING: AUDIT ( a) Prior to the final payment under this Agreement, and at such other times as may be requested by the Executive Director of the Development Department of the City of San Bernardino, Subrecipient shall submit to the Director an accounting of the proposed and actual expenditures of all revenues from whatever source accruing to the organization for the fiscal year ending June 30, 1995. (b) Financial records shall be maintained by Subrecipient in accordance with Generally Accepted Accounting Principles, and in a manner which permits City to trace the expenditures of funds to source documentation, All books and records of Subrecipient are to be kept open for inspection at any time during the business day by the City, its officers or agents, and by any representative of the United States Department of Housing and Urban Development authorized to audit Community Development Block Grant programs. (c) Standards for financial management systems and financial reporting requirements established by 24 CFR, Parts 85.20 and 85.22 shall be fully complied with by Subrecipient. Subrecipient acknowledges that the funds provided are federal funds. (d) Subrecipient's financial management system shall provide for accurate, current and complete disclosure of the financial results of each program sponsored by this Agreement. It is the responsibility of Subrecipient to adequately safeguard all assets of the program, and Subrecipient shall assure that they are used solely for authorized purposes. (e) Subrecipient will be required to submit an audited financial statement during the monitoring visit by the City. 6. SERVICES AVAILABLE TO RESIDENTS: MONITORING AND REPORTING PROGRAM PERFORMANCE. The services of Subrecipient shall be made available to residents and inhabitants of the City of San Bernardino unless otherwise noted in Exhibit "A". No person shall be denied service because of race, color, national origin, creed, religion, sex, marital status, or physical handicap. Subrecipient shall comply with Affirmative Action guidelines in its employment practices. Subrecipient shall also monitor the program's activities and submit written reports quarterly, or more often if requested, to the Executive Director of the Development Department of the City of San Bernardino, in accordance with 24 CPR, Part 85.41 (c)(d) and Part 85.21. Failure to provide such quarterly 4 94 28:- City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 performance reports may prevent the processing by City of Subrecipient's requests for reimbursement, and may justifY temporary withholding as provided for in Paragraph" 11" hereof. City reserves the right to waive such breach, without prejudice to any other of its rights hereunder, upon a finding by the Executive Director of the Development Department that such failure was due to extraordinary circumstances and that such breach has been timely cured without prejudice to the City, 7. PROCUREMENT PRACTICES: CONFLICT OF INTEREST Subrecipient shall comply with procurement procedures and guidelines established by 24 CPR, Part 85.36 (d)(I), Subrecipient "Procurement Standards". In addition to the specific requirements of24 CFR, Part 85, Subrecipient shall maintain a code or standards of conduct which shall govern the performance of its officers, employees or agents in contracting with and expending the federal grant funds made available to Subrecipient under this Agreement. Subrecipient's officers, employees or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or potential contractors, To the extent permissible by state law, rules, and regulations, the standards adopted by Subrecipient shall provide for penalties, sanctions or other disciplinary actions to be applied for violations of such standards by either the Subrecipient's officers, employees or agents, or by contractors or their agents. Subrecipient shall provide a copy of the code or standards adopted to City forthwith. All procurement transactions without regard to dollar value shall be conducted in a manner so as to provide maximum open and free competition. The Subrecipient shall be alert to organizational conflicts of interest or non-competitive practices among contractors which may restrict or eliminate competition or otherwise restrain trade. Subrecipient agrees to adhere to conflict of interest provisions set forth in 24 CFR Section 570,611 and to the procurement rules specified in 24 CPR, Part 85.36, in its expenditure of all funds received under this Agreement. 8. ANTI-KICK BACK PROVISIONS: EOUAL EMPLOYMENT OPPORTUNITY All contracts for construction or repair using funds provided under this Agreement shall include a provision for compliance with the Copeland "Anti-Kick Back" Act (18 US,C. 874) as supplemented in Department of Labor Regulations (29 CFR, Part 3). This Act provides that each contractor or subgrantee shall be prohibited from inducing, by any means, any person employed in the construction, completion or repair of public work, to give up any part of the compensation to which he/she is otherwise entitled. Subrecipient shall report all suspected or reported violations to City. All 5 94 ?P~ City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 contracts in excess of$10,000.00 entered into by Subrecipient using funds provided under this Agreement shall contain a provision requiring compliance with Equal Employment Opportunity provisions established by Executive Order Number 11246, as amended. 9, PREVAILING WAGE REOUIREMENT Any construction contracts awarded by Subrecipient using funds provided under this Agreement in excess of $2,000.00 shall include a provision for compliance with the Davis-Bacon Act [40 U,S.C. 276(a) to 276(a)(7)] and as supplemented by Department of Labor Regulations (29 CFR). Under this act, contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor, In addition, contractors sha11 place a copy ofthe current prevailing wage determination issued by the Department of Labor in each solicitation and the award ofa contract shall be conditioned upon the acceptance of the wage determination. Subrecipient shall report all suspected or reported violations to City. 1 O. APPROVAL OF CITY OF ANY CHARGES: USE OF PROGRAM INCOME (a) City hereby requires Subrecipient to notifY the City in writing, of its intent to charge a fee for any service, the provision of which is assisted pursuant to the Agreement. City requires Subrecipient to obtain the prior written approval of City for any charges or fees to be charged by Subrecipient for such services, and of any rules and regulations governing the provision of services hereunder. (b) Program income represents gross income received by the Subrecipient directly generated from the use of funds provided hereunder. Such earnings include interest earned on advances and may include, but will not be limited to, income from service fees, sale of commodities, usage and rental fees for real Of personal property using the funds provided by this Agreement. As to such income, it shall be first applied to eligible program activities, before requests for reimbursement and, in the use, shaIl be subject to all applicable provisions of this Agreement. Income not so applied shall be remitted to City. Subrecipient shall remit all unspent program income to the City within thirty (30) days subsequent to the end of the program year (June 30, 1995). 6 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 11, TEMPORARY WITHHOLDING The Executive Director of the Development Department of the City of San Bernardino is authorized to temporarily withhold the payment of funds to Subrecipient when the Director determines that any violation of this Agreement has occurred. Funds shall be withheld until the violation is corrected to the satisfaction of the Executive Director. Subrecipient shall have the right to appeal the decision ofthe Executive Director to the Mayor and Common Council. The sole grounds for such appeal shall be that :10 violation of the Agreement has occurred. Subrecipient shall file such appeal within fifteen (15) days after such first withholding. The Mayor and Common Council shall set a date for the hearing of such appeal which is within thirty (30) days following the date offi1ing. 12. RECORDS RETENTION Financial records, supporting documents, statistical records, and all other records pertaining to the use ofthe funds provided under this Agreement shall be retained by Subrecipient for a period of three (3) years, at a minimum, and in the event oflitigation, claim or audit, the records shall be retained until all litigation, claim or audit findings involving the records, have been fully resolved. Records for non-expendable property acquired with federal funds provided under this Agreement shall be retained for three (3) years after the final disposition of such property. 13. PROPERTY MANAGEMENT STANDARDS Non-expendable personal property, for the purposes of this Agreement, is defined as tangible personal property, purchased in whole or in part with federal funds, which has useful life or more than one (1) year and an acquisition cost of one-thousand dollars ($1,000.00) or more per unit. Real property means land, including land improvements, structures and appurtenances thereto, excluding movable machinery and equipment. Non-expendable personal property and real property purchased with or improved by funds provided under this Agreement shall be subject to the property management standards set forth in 24 CPR, Part 85.32. 14. TERMINATION FOR CAUSE (a) City reserves the right to terminate this Agreement in accordance with 24 CPR, Part 85.43, and any and all grants and future payments under this Agreement, in whole or in part, at any time before the date of completion of this Agreement whenever City determines that the Subrecipient has materially failed to comply with the terms and conditions ofthis Agreement. In the event City seeks to 7 . 9" 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 terminate this Agreement for cause, City shall promptly notifY the Subrecipient in writing of the proposed termination and the reasons therefore, together with the proposed effective date. Subrecipient shall be given an opportunity to appear before the Mayor and Common Council at the time at which the Mayor and Common Council are to consider such recommended termination, and shaIl be given a reasonable opportunity to show cause why, if any exists, the Agreement should not be terminated for cause. Upon determination by the Mayor and Common Council that the contract should be terminated for cause, notice thereof, including reasons for the determination, shall promptly be mailed to the Subrecipient, together with information as to the effective date of the termination, Such notice may be given orally at that hearing. The determination of the Mayor and Common Council as to cause shall be final. (b) In the event of any termination whether for cause or for convenience, Subrecipient shall forthwith provide to the Development Department any and all documentation needed by the Development Department to establish a full record of all monies received by Subrecipient and to document the uses of same. 15. TERMINATION FOR CONVENIENCE City or Subrecipient may terminate this Agreement in whole or in part provided both parties agree that the continuation of the project would not produce beneficial results commensurate with further expenditure of funds. In such event, the parties shall agree upon the termination conditions, including the effective date and, in the case of partial terminations, the portion to be terminated. The Subrecipient shall not incur new obligations for the terminated portion after the effective date and shall cancel as many outstanding obligations as possible. City shaIl allow Subrecipient full credit for the City's share of the non-cancelable obligations properly incurred by the Subrecipient prior to termination 16, REVERSION OF ASSETS Subrecipient agrees that upon expiration of this Agreement, the Subrecipient shall transfer to the City any and all CDBG funds not used at the time of expiration and any accounts receivable attributable to the use of CDBG funds. Subrecipient agrees that any real property under its control, which was acquired or improved, in whole or in part, with CDBG funds in excess of $500.00 shall either, (i) be used to meet one (1) of the three (3) national objectives as set forth in 24 CPR, Part 8 94 ?Rr; City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 570.208 until five (5) years after expiration of the Agreement or such period of time as determined appropriate by the City, or; (ii) is disposed of in a manner which results in the City being reimbursed in the amount of the current fair market value of the property less any portion thereof attributable to expenditure of, or improvement to, the property by Subrecipient. Such reimbursement is not required after the period oftime specified in "i" above. 17. CDBG REOUIREMENTS FOR PROPERTIES OWNED BY A RELIGIOUS ENTITY Subrecipient agrees to all conditions and requirements set forth in 24 CFR, Part 570.483, Section (6) (ii) (A) (B) (C) (D) (E) (F) (G) regarding the use ofCDBG funds for the rehabilitation of a building(s) owned primarily by a religious entity. In particular, Subrecipient is apprised of and agrees to the following: A. The leased premises will be used exclusively for secular purposes available to persons regardless of religion; B, The portion of the cost of any improvements that also serve a non-leased part of the building will be allocated to and paid for by the Lessor; C. The Lessor will be required to enter into a binding agreement stating that unless the Lessee (Subrecipient), or a qualified successor Lessee, retains the use ofthe leased premises for a wholly secular purpose for at least the useful life of the improvements, the Lessor will pay to the Lessee (Subrecipient) an amount equal to the residual value ofthe improvements. D. The Lessee (Subrecipient) must remit the amount received from the Lessor as indicated above to the City from which the CDBG funds were received. 18, HOLD HARMLESS Subrecipient agrees to indemnifY, save and hold harmless the City and the Development Department and their employees and agents from all liabilities and charges, expenses (including counsel fees), suits or losses, however occurring, or damages, arising or growing out of the use of or receipt of funds paid under this Agreement and all operations under this Agreement. Payments under this 9 . 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 Agreement are made with the understanding that the City and the Development Department are not involved in the performance of services or other activities of the Subrecipient. Subrecipient and its employees and agents are independent contractors and not employees or agents of City and the Development Department. 19, AMENDMENT This Agreement may be amended or modified only by written agreement signed by both parties, and failure on the part of either party to enforce any provision of this Agreement shaIl not be construed as a waiver of the right to compel enforcement of any provision or provisions. 20, ASSIGNMENT This Agreement sha11 not be assigned by Subrecipient without the prior written consent of City. 21. NOTICES All notices herein required shall be in writing and delivered in person or sent certified mail, postage prepaid, addressed as follows: AS TO CITY: AS TO SUBRECIPIENT: KENNETH J. HENDERSON Executive Director Development Department Economic Development Agency 201 North "E" Street, Third Floor San Bernardino, California 92401 Kids Against Crime 119 East Highland San Bernardino, CA 92401 22. EVIDENCE OF AUTHORITY Subrecipient shall provide to City evidence in the form of a certified copy of minutes of the governing body of Subrecipient, or other adequate proof, that this Agreement has been approved in all its detail by the governing body of the Subrecipient, that the person(s) executing it are authorized to act on behalf of Subrecipient, and that this Agreement is a binding obligation on Subrecipient. 10 94 285 City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 23. CERTIFICATION OF ASSURANCE Subrecipient shaIl comply with the program requirements attached hereto as Exhibit "C", which are incorporated by reference as though fully set forth at length and made a part of this Agreement by execution of all certifications and assurances of the CDBG program. 24. ENTIRE AGREEMENT This Agreement and any document or instrument attached hereto or referred to herein integrates all terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations and prior writing in respect to the subject matter hereof In the event of conflict between the terms, conditions or provisions of this Agreement, and any such document or instrument, the terms and conditions of the Agreement shall prevail. 25. NO THIRD PARTY BENEFICIARIES No third party shall be deemed to have any rights hereunder against any of the parties hereto as a result of this Agreement. lIlt lIlt lIlt lIlt fill lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt 11 94-285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first hereinabove written. CITY OF SAN BERNARDINO Kids Against Crime -! iJf C ~ ~ TOM MINO Mayor City of San Bernardino ()Jo1!i. {(fVI JirrtL President/CEO ATTEST .~~ ~RK,~ City of San Bernardino Approved as to form and legal content: JAMES F. PENMAN, City Attorney By: 4/}1'4'l~Jl:~ / 12 ,- 94. 28 5 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 EXHIBIT NB Program Administration to provide programs to children which emphasis crime prevention and a drug free enviromnent as an alternative to crime, Programs also provide education to children on how to prevent themselves from becoming victims of crime. Public Services $ 20,000 Other TOTAL $ 20,000 13 94 ?Q~ Q4 ')".. City of San'13ernardino/Development Department Agreement - CDBG October 18, 1994 Desi Advertisement for Bids Bid 0 en Award of Contract Be . Construction 50% Construction Com lete Construction 14 9 4 2 8.;' City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 EXHIBIT C CITY OF SAN BERNARDINO DEVELOPMENT DEPARTMENT "Certification and Assurance" (To Accompany CDBG Agreement) I, KATHERINE ANDERSON,PROGRAM DIRECTOR , of the (Name and Title of Official) Kids Against Crime located at (Name of Agency/Olganization) 119 East Highland. San Bernardino. California 92401 do hereby (Address of AgencyIOrganimlion) make the following certification and assurance to accompany the Community Development Block Grant Agreement between Kids Against Crime and the (Name of AgcncyfOrganiza) City of San Bernardino: a) CertifY that the information booklet for CDBG Program requirements has been read and understood, and b) Assure that the Kids Against Crime (Name of Ageney/OrganmWon) and will comply with all governing requirements as stipulated herewith in the performance of the CDBG Agreement. 1S~~~ I ~/)//9r Date LM:cdbg0005.agr:adw 15 94-285 AGREEMENT THIS AGREEMENT is entered into effective as of the , at San Bernardino, California, between the CITY OF SAN BERNARDINO, a municipal corporation, referred to as "City", and Boys and Girls Club, a nonprofit community service organization, referred to as "Subrecipient". City and Subrecipient agree as follows: 1. RECITALS (a) Subrecipient has requested financial assistance from City for fiscal year 1994/1995 from funds available through the US. Department of Housing and Urban Development-Community Development Block Grant Program. (b) Subrecipient represents that the expenditures authorized by this Agreement are for the Program Administration which is a valid and eligible community development purposes, as defined in CFR Part 570 in accordance with federal law and regulations, and that all funds granted under this Agreement will be used for no purpose other than those purposes specifically authorized. The specific purposes and scope of services of this particular grant are set forth in Exhibit" A", attached hereto and incorporated into this Agreement as though fully set forth herein. Proposal application which defines the scope of services has also been attached as a supplemental reference, (c) Subrecipient will comply with applicable uniform administrative requirements, as described in 24 CPR, Part 570.502. (d) Subrecipient will carry out each activity, program and/or project in compliance with all federal laws and regulations as set forth in 24 CPR, Part 570, with the following exceptions, (i) the Subrecipient does not assume the enviromnental responsibilities ofthe Grantee as described in 24 CPR, Part 570.604, and; (ii) the Subrecipient does not assume the Grantee's responsibilities for initiating the review process under Executive Order Number 12372. ( e) Subrecipient will comply with the requirements set forth in the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970, as amended, (URA), 49 CPR, Part 24 in accordance with federal regulations when attempting to or acquiring any building or parcel ofland. Subrecipient will be required to obtain written approval from the Executive Director ofthe Development Department prior to any activity taking place within the confines ofURA 49 CFR, Part 24, as amended. 1 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 2, PAYMENTS City shall reimburse Subrecipient for allowable costs incurred under the scope of this Agreement and applicable federal regulations, which have not been paid for or reimbursement will be made at least on a monthly basis, with the total of all such reimbursements not to exceed $ 20.000 . Changes or modifications to the identified scope of services or term of agreement will not be allowed without written consent of the Executive Director of the Development Department of the City of San Bernardino, or designee. 3. TERM This Agreement shall commence November 1, 1994, and terminate June 30, 1995. 4. USE OF FUNDS: BUDGET: TRAVEL LIMITATION (a) The funds paid to Subrecipient shall be used by it solely for the purposes set forth in Paragraph 1 (b) of this Agreement, and in accordance with the program budget submitted by Subrecipient to the City of San Bernardino Development Department, a copy of which is attached to this Agreement as Exhibit "B". The comprehensive budget, included in the application, shall list all sources of funding for the program covered by this Agreement, whether from State, Federal, local or private sources, and shall identify which sources are paying for which specific portions of the program, by line-item, to the extent practicable, (b) No travel expenses for out-of-state travel shall be included in this program unless specifically listed in the budget as submitted and approved, and all travel expenses to be funded from fund provided hereunder shaIl be specifically identified as travel expense, which shaIl be negotiated between the City of San Bernardino Development Department and Subrecipient as listed in the budget. Any travel expenses incurred by Subrecipient above the budgeted amount or for out-of-state travel shaIl not be eligible for reimbursement unless the prior written approval of the Executive Director of the Development Department of the City of San Bernardino, or designee, has been obtained. (c) Funds shall be used for purposes authorized by the Community Development Block Grant Program only, and no portion of the funds granted hereby shall be used for any purpose not specifically authorized by this Agreement. (d) Only net payroll shall be periodically reimbursed by City as an allowable cost. Any amounts withheld by Subrecipient from an employee's pay for taxes, social security, or other 2 94 285 City of San Bemardino/Development Department Agreement - CDBG October 18, 1994 withholdings and not actually paid over to another entity, shall not be included as wages or expenses eligible for reimbursement as an allowable cost until such time as the withheld taxes, social security, or other withholding are immediately paid over to another entity entitled to such payment. Upon such payment and the submission of evidence of such payment to the City of San Bernardino Development Department, such expenses shall be regarded as an allowable cost, and the City shall reimburse Subrecipient for such obligation. ( e) Subrecipient shaIl be allowed, with the prior written approval to the budget during the first three (3) quarters of the fiscal year, so long as Subrecipient is in compliance with Section "2" of this Agreement at the time of submission of the budget modification request. A variation in the itemization of costs, as set forth in the proposed budget submitted to City, not to exceed ten percent (10%) shall be allowed, provided that the prior written approval of the Executive Director of the Development Department of the City of San Bernardino is obtained, it being understood that the total amount of the grant shall not be varied thereby. (f) The parties intend that grant funds be utilized within the time period covered by this Agreement, and entitlement to any funds not expended or obligated shall revert to the City. No reserve for the future shall be established with the fund except as may be authorized to meet commitments made for services provided during the period of this Agreement, but not yet paid for at the conclusion of this Agreement. (g) Subrecipient shall remain in compliance with all state, federal and local laws prior to the receipt of any reimbursement hereunder. This includes, but is not limited to, all laws and regulations relative to the form of organization, local business licenses and any laws and regulations specific to the business and activity carried out by Subrecipient. Reimbursement shall not be made to Subrecipient which is not operating in compliance with all applicable laws. Reimbursements may be subsequently paid, at the direction of the Executive Director ofthe Development Department for reimbursement costs incurred during the period when compliance is achieved before expiration of this Agreement. 3 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 5. ACCOUNTING: AUDIT (a) Prior to the final payment under this Agreement, and at such other times as may be requested by the Executive Director ofthe Development Department of the City of San Bernardino, Subrecipient shall submit to the Director an accounting of the proposed and actual expenditures of all revenues from whatever source accruing to the organization for the fiscal year ending June 30, 1995. (b) Financial records shall be maintained by Subrecipient in accordance with Generally Accepted Accounting Principles, and in a manner which permits City to trace the expenditures of funds to source documentation. All books and records of Subrecipient are to be kept open for inspection at any time during the business day by the City, its officers or agents, and by any representative of the United States Department of Housing and Urban Development authorized to audit Community Development Block Grant programs. ( c) Standards for financial management systems and financial reporting requirements established by 24 CFR, Parts 85.20 and 85.22 shall be fully complied with by Subrecipient. Subrecipient acknowledges that the funds provided are federal funds. (d) Sub recipient's financial management system shall provide for accurate, current and complete disclosure of the financial results of each program sponsored by this Agreement. It is the responsibility of Subrecipient to adequately safeguard all assets ofthe program, and Subrecipient shall assure that they are used solely for authorized purposes. (e) Subrecipient will be required to submit an audited financial statement during the monitoring visit by the City. 6. SERVICES AVAILABLE TO RESIDENTS: MONITORING AND REPORTING PROGRAM PERFORMANCE. The services of Subrecipient shall be made available to residents and inhabitants of the City of San Bernardino unless otherwise noted in Exhibit" A". No person shall be denied service because of race, color, national origin, creed, religion, sex, marital status, or physical handicap. Subrecipient shall comply with Affirmative Action guidelines in its employment practices. Subrecipient shall also monitor the program's activities and submit written reports quarterly, or more often if requested, to the Executive Director of the Development Department of the City of San Bernardino, in accordance with 24 CFR, Part 85.41 (c)(d) and Part 85.21. Failure to provide such quarterly 4 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 performance reports may prevent the processing by City of Subrecipient's requests for reimbursement, and may justifY temporary withholding as provided for in Paragraph" 11" hereof City reserves the right to waive such breach, without prejudice to any other of its rights hereunder, upon a finding by the Executive Director of the Development Department that such failure was due to extraordinary circumstances and that such breach has been timely cured without prejudice to the City._ 7, PROCUREMENT PRACTICES: CONFLICT OF INTEREST Subrecipient shall comply with procurement procedures and guidelines established by 24 CFR, Part 85.36 (d)(I), Subrecipient "Procurement Standards", In addition to the specific requirements of24 CPR, Part 85, Subrecipient shall maintain a code or standards of conduct which shall govern the performance of its officers, employees or agents in contracting with and expending the federal grant funds made available to Subrecipient under this Agreement. Subrecipient's officers, employees or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or potential contractors. To the extent permissible by state law, rules, and regulations, the standards adopted by Subrecipient shall provide for penalties, sanctions or other disciplinary actions to be applied for violations of such standards by either the Subrecipient's officers, employees or agents, or by contractors or their agents. Subrecipient shall provide a copy ofthe code or standards adopted to City forthwith. All procurement transactions without regard to dollar value shall be conducted in a manner so as to provide maximum open and free competition. The Subrecipient shall be alert to organizational conflicts of interest or non-competitive practices among contractors which may restrict or eliminate competition or otherwise restrain trade. Subrecipient agrees to adhere to conflict of interest provisions set forth in 24 CFR Section 570.611 and to the procurement rules specified in 24 CFR, Part 85.36, in its expenditure of all funds received under this Agreement. 8. ANTI-KICK BACK PROVISIONS: EOUAL EMPLOYMENT OPPORTUNITY All contracts for construction or repair using funds provided under this Agreement shall include a provision for compliance with the Copeland "Anti-Kick Back" Act (18 U.S.C. 874) as supplemented in Department of Labor Regulations (29 CFR, Part 3). This Act provides that each contractor or sub grantee shall be prohibited from inducing, by any means, any person employed in the construction, completion or repair of public work, to give up any part of the compensation to which he/she is otherwise entitled. Subrecipient shall report all suspected or reported violations to City. All 5 . 94 28~ ,. City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 contracts in excess of$10,000.00 entered into by Subrecipient using funds provided under this Agreement shaIl contain a provision requiring compliance with Equal Employment Opportunity provisions established by Executive Order Number 11246, as amended. 9. PREVAILING WAGE REOUIREMENT Any construction contracts awarded by Subrecipient using funds provided under this Agreement in excess of $2,000.00 shall include a provision for compliance with the Davis-Bacon Act [40 U.S.C. 276(a) to 276(a)(7)] and as supplemented by Department of Labor Regulations (29 CFR). Under this act, contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor. In addition, contractors shall place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation and the award ofa contract shall be conditioned upon the acceptance of the wage determination. Subrecipient shall report all suspected or reported violations to City. 1 O. APPROVAL OF CITY OF ANY CHARGES: USE OF PROGRAM INCOME (a) City hereby requires Subrecipient to notifY the City in writing, of its intent to charge a fee for any service, the provision of which is assisted pursuant to the Agreement. City requires Subrecipient to obtain the prior written approval of City for any charges or fees to be charged by Subrecipient for such services, and of any rules and regulations governing the provision of services hereunder. (b) Program income represents gross income received by the Subrecipient directly generated from the use of funds provided hereunder. Such earnings include interest earned on advances and may include, but will not be limited to, income from service fees, sale of commodities, usage and rental fees for real or personal property using the funds provided by this Agreement. As to such income, it shall be first applied to eligible program activities, before requests for reimbursement and, in the use, shall be subject to all applicable provisions of this Agreement. Income not so applied shall be remitted to City. Subrecipient shall remit all unspent program income to the City within thirty (30) days subsequent to the end of the program year (June 30, 1995). 6 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 11. TEMPORARY WITHHOLDING The Executive Director of the Development Department of the City of San Bernardino is authorized to temporarily withhold the payment of funds to Subrecipient when the Director determines that any violation of this Agreement has occurred. Funds shall be withheld until the violation is corrected to the satisfaction of the Executive Director. Subrecipient shall have the right.to appeal the decision of the Executive Director to the Mayor and Common Council. The sole grounds for such appeal shall be that no violation of the Agreement has occurred. Subrecipient shall file such appeal within fifteen (15) days after such first withholding. The Mayor and Common Council shall set a date for the hearing of such appeal which is within thirty (30) days following the date of filing. 12, RECORDS RETENTION Financial records, supporting documents, statistical records, and all other records pertaining to the use of the funds provided under this Agreement shall be retained by Subrecipient for a period of three (3) years, at a minimum, and in the event oflitigation, claim or audit, the records shall be retained until all litigation, claim or audit findings involving the records, have been fully resolved. Records for non-expendable property acquired with federal funds provided under this Agreement shall be retained for three (3) years after the final disposition of such property, 13. PROPERTY MANAGEMENT STANDARDS Non-expendable personal property, for the purposes of this Agreement, is defined as tangible personal property, purchased in whole or in part with federal funds, which has useful life or more than one (1) year and an acquisition cost of one-thousand dollars ($1,000.00) or more per unit. Real property means land, including land improvements, structures and appurtenances thereto, excluding movable machinery and equipment. Non-expendable personal property and real property purchased with or improved by funds provided under this Agreement shall be subject to the property management standards set forth in 24 CPR, Part 85.32, 14. TERMINATION FOR CAUSE (a) City reserves the right to terminate this Agreement in accordance with 24 CPR, Part 85.43, and any and all grants and future payments under this Agreement, in whole or in part, at any time before the date of completion of this Agreement whenever City determines that the Subrecipient has materially failed to comply with the terms and conditions ofthis Agreement. In the event City seeks to 7 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 terminate this Agreement for cause, City shall promptly notifY the Subrecipient in writing of the proposed termination and the reasons therefore, together with the proposed effective date, Subrecipient shall be given an opportunity to appear before the Mayor and Common Council at the time at which the Mayor and Common Council are to consider such recommended termination, and shall be given a reasonable opportunity to show cause why, if any exists, the Agreement should not be terminated for cause. Upon determination by the Mayor and Common Council that the contract should be terminated for cause, notice thereof, including reasons for the determination, shall promptly be mailed to the Subrecipient, together with information as to the effective date of the termination. Such notice may be given oraIly at that hearing, The determination of the Mayor and Common Council as to cause shaIl be final. (b) In the event of any termination whether for cause or for convenience, Subrecipient shaIl forthwith provide to the Development Department any and all documentation needed by the Development Department to establish a full record of all monies received by Subrecipient and to document the uses of same, 15. TERMINATION FOR CONVENIENCE City or Subrecipient may terminate this Agreement in whole or in part provided both parties agree that the continuation of the project would not produce beneficial results commensurate with further expenditure of funds. In such event, the parties shall agree upon the termination conditions, including the effective date and, in the case of partial terminations, the portion to be terminated. The Subrecipient shall not incur new obligations for the terminated portion after the effective date and shall cancel as many outstanding obligations as possible. City shall allow Subrecipient full credit for the City's share ofthe non-cancelable obligations properly incurred by the Subrecipient prior to termination. 16, REVERSION OF ASSETS Subrecipient agrees that upon expiration of this Agreement, the Subrecipient shall transfer to the City any and all CDBG funds not used at the time of expiration and any accounts receivable attributable to the use of CDBG funds. Subrecipient agrees that any real property under its control, which was acquired or improved, in whole or in part, with CDBG funds in excess of$500.00 shall either, (i) be used to meet one (1) of the three (3) national objectives as set forth in 24 CFR, Part 8 9'4 ?Rr.: City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 570.208 until five (5) years after expiration of the Agreement or such period oftime as determined appropriate by the City, or; (ii) is disposed of in a manner which results in the City being reimbursed in the amount of the current fair market value of the property less any portion thereof attributable to expenditure of, or improvement to, the property by Subrecipient. Such reimbursement is not required after the period oftime specified in "i" above. 17. CDBG REOUIREMENTS FOR PROPERTIES OWNED BY A RELIGIOUS ENTITY Subrecipient agrees to all conditions and requirements set forth in 24 CPR, Part 570.483, Section (6) (ii) (A) (B) (C) (D) (E) (F) (G) regarding the use ofCDBG funds for the rehabilitation ofa building(s) owned primarily by a religious entity. In particular, Subrecipient is apprised of and agrees to the following: A. The leased premises will be used exclusively for secular purposes available to persons regardless of religion; B. The portion of the cost of any improvements that also serve a non-leased part of the building will be allocated to and paid for by the Lessor; C. The Lessor will be required to enter into a binding agreement stating that unless the Lessee (Subrecipient), or a qualified successor Lessee, retains the use of the leased premises for a wholly secular purpose for at least the useful life of the improvements, the Lessor will pay to the Lessee (Subrecipient) an amount equal to the residual value of the improvements, D. The Lessee (Subrecipient) must remit the amount received from the Lessor as indicated above to the City from which the CDBG funds were received. 18, HOLD HARMLESS Subrecipient agrees to indemnifY, save and hold harmless the City and the Development Department and their employees and agents from all liabilities and charges, expenses (including counsel fees), suits or losses, however occurring, or damages, arising or growing out of the use of or receipt of funds paid under this Agreement and all operations under this Agreement. Payments under this 9 9'4 285 City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 Agreement are made with the understanding that the City and the Development Department are not involved in the performance of services or other activities ofthe Subrecipient. Subrecipient and its employees and agents are independent contractors and not employees or agents of City and the Development Department. 19. AMENDMENT This Agreement may be amended or modified only by written agreement signed by both parties, and failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of any provision or provisions. 20. ASSIGNMENT This Agreement shall not be assigned by Subrecipient without the prior written consent of City. 21. NOTICES All notices herein required shall be in writing and delivered in person or sent certified mail, postage prepaid, addressed as follows: AS TO CITY: AS TO SUBREClPIENT: KENNETH J. HENDERSON Executive Director Development Department Economic Development Agency 201 North "E" Street, Third Floor San Bernardino, California 92401 Boys and Girls Club 1180 West Ninth Street San Bernardino, CA 92411 22, EVIDENCE OF AUTHORITY Subrecipient shall provide to City evidence in the form of a certified copy of minutes of the governing body of Sub recipient, or other adequate proof, that this Agreement has been approved in all its detail by the governing body of the Subrecipient, that the person(s) executing it are authorized to act on behalf of Subrecipient, and that this Agreement is a binding obligation on Subrecipient. 10 94 28;-: City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 23. CERTIFICATION OF ASSURANCE Subrecipient shall comply with the program requirements attached hereto as Exhibit "C", which are incorporated by reference as though fully set forth at length and made a part of this Agreement by execution of all certifications and assurances of the CDBG program. 24. ENTIRE AGREEMENT This Agreement and any document or instrument attached hereto or referred to herein integrates all terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations and prior writing in respect to the subject matter hereof. In the event of conflict between the terms, conditions or provisions of this Agreement, and any such document or instrument, the terms and conditions of the Agreement shall prevail. 25, NO THIRD PARTY BENEFICIARIES No third party shall be deemed to have any rights hereunder against any of the parties hereto as a result of this Agreement. lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt fill lIlt lIlt lIlt lIlt fIll 11 94'-285 94 28~ City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first hereinabove written. CITY OF SAN BERNARDINO Bo s and Girls Club \. ~.~c f-?rn'l /~ T~ MlNO Mayor City of San Bernardino ATTEST ~ARK~ City of San Bernardino Approved as to form and legal content: JAMES F. PENMAN, City Attorney By: hbnMJt?-~ / 12 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 EXHIBIT A!B 1t..1118Ifllll_~~~ .. .~..~.tlf.!:t~II(.~:. Funding is contingent upon the management of the boys and Girls Club seeking and obtaining an audit of the organization. CDBG funds may be used to pay for the cost of the audit in an amount up to $5,000. Upon the completion of the audit, the Boys and Girls Club may-request the remaining funds for the specified scope of work in accordance with the CDBG reimbursement procedures. Public Services $ 20,000 Other TOTAL $ 20,000 13 94 ?p~ City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 Plannin Desi Advertisement for Bids Bid 0 en Award of Contract Be . n Construction 50% Construction Com lete Construction 14 94 285 City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 EXHIBIT C CITY OF SAN BERNARDINO DEVELOPMENT DEPARTMENT "Certification and Assurance" (To Accompany CDBG Agreement) I, Hard} BrDwn} fJn?6fml7!; Boortlof U/ret!vZc::. (NameandTitleofOflicial) Boys and Girls Club . of the located at (NameorAgency~) 1180 West Ninth Street. San Bernardino. California 92411 do hereby (AddreM of AgencylOrpnization) make the following certification and assurance to accompany the Community Development Block Grant Agreement between Boys and Girls Club and the (Name of Agency/Organization) City of San Bernardino: a) CertifY that the information booklet for CDBG Program requirements has been read and understood, and b) Assure that the Boys and Girls Club (Name of AgencylOJpnizatioo) and will comply with all governing requirements as stipulated herewith in the performance of the CDBG Agreement. ~ ~ /1'7;/ Daie LM:cdbg0004.agr:adw 15 94-285 AGREEMENT TillS AGREEMENT is entered into effective as ofthe . at San Bernardino, California, between the CITY OF SAN BERNARDINO, a municipal corporation, referred to as "City", and Easter Seal Society, a nonprofit community service organization, referred to as "Subrecipient". City and Subrecipient agree as follows: 1. RECITALS (a) Subrecipient has requested financial assistance from City for fiscal year 1994/1995 from funds available through the U.S, Department of Housing and Urban Development-Community Development Block Grant Program. (b) Subrecipient represents that the expenditures authorized by this Agreement are for the Head IniUlY Support Program which is a valid and eligible community development purposes, as defined in CFR Part 570 in accordance with federal law and regulations, and that all funds granted under this Agreement will be used for no purpose other than those purposes specifically authorized. The specific purposes and scope of services of this particular grant are set forth in Exhibit "A", attached hereto and incorporated into this Agreement as though fully set forth herein. Proposal application which defines the scope of services has also been attached as a supplemental reference. ( c) Subrecipient will comply with applicable uniform administrative requirements, as described in 24 CFR, Part 570,502. (d) Subrecipient will carry out each activity, program and/or project in compliance with all federal laws and regulations as set forth in 24 CPR, Part 570, with the following exceptions, (i) the Subrecipient does not assume the enviromnental responsibilities of the Grantee as described in 24 CFR, Part 570.604, and; (ii) the Subrecipient does not assume the Grantee's responsibilities for initiating the review process under Executive Order Number 12372, (e) Subrecipient will comply with the requirements set forth in the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970, as amended, (URA), 49 CFR, Part 24 in accordance with federal regulations when attempting to or acquiring any building or parcel of/and, Subrecipient will be required to obtain written approval from the Executive Director of the Development Department prior to any activity taking place within the confines ofURA 49 CFR, Part 24, as amended. 1 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 2. PAYMENTS City shall reimburse Subrecipient for allowable costs incurred under the scope of this Agreement and applicable federal regulations, which have not been paid for or reimbursement will be made at least on a monthly basis, with the total of all such reimbursements not to exceed $ 20.000 , Changes or modifications to the identified scope of services or term of agreement will not be allowed without written consent of the Executive Director of the Development Department of the City of San Bernardino, or designee. 3. TERM This Agreement shall commence November 1, 1994, and terminate June 30, 1995. 4. USE OF FUNDS: BUDGET: TRAVEL LIMITATION (a) The funds paid to Subrecipient shall be used by it solely for the purposes set forth in Paragraph 1(b) ofthis Agreement, and in accordance with the program budget submitted by Subrecipient to the City of San Bernardino Development Department, a copy of which is attached to this Agreement as Exhibit "B". The comprehensive budget, included in the application, shall list all sources of funding for the program covered by this Agreement, whether from State, Federal, local or private sources, and shall identifY which sources are paying for which specific portions of the program, by line-item, to the extent practicable. (b) No travel expenses for out-of-state travel shall be included in this program unless specifically listed in the budget as submitted and approved, and all travel expenses to be funded from fund provided hereunder shall be specifically identified as travel expense, which shall be negotiated between the City of San Bernardino Development Department and Subrecipient as listed in the budget. Any travel expenses incurred by Subrecipient above the budgeted amount or for out-of-state travel shall not be eligible for reimbursement unless the prior written approval of the Executive Director of the Development Department of the City of San Bernardino, or designee, has been obtained. ( c) Funds shall be used for purposes authorized by the Community Development Block Grant Program only, and no portion of the funds granted hereby shall be used for any purpose not specifically authorized by this Agreement. (d) Only net payroll shall be periodically reimbursed by City as an allowable cost. Any amounts withheld by Subrecipient from an employee's pay for taxes, social security, or other 2 94 285 City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 withholdings and not actually paid over to another entity, shall not be included as wages or expenses eligible for reimbursement as an allowable cost until such time as the withheld taxes, social security, or other withholding are immediately paid over to another entity entitled to such payment. Upon such payment and the submission of evidence of such payment to the City of San Bernardino Development Department, such expenses shall be regarded as an allowable cost, and the City shaIl reimburse Subrecipient for such obligation. (e) Subrecipient sha11 be allowed, with the prior written approval to the budget during the first three (3) quarters of the fiscal year, so long as Subrecipient is in compliance with Section "2" of this Agreement at the time of submission of the budget modification request. A variation in the itemization of costs, as set forth in the proposed budget submitted to City, not to exceed ten percent (10%) shall be allowed, provided that the prior written approval of the Executive Director ofthe Development Department of the City of San Bernardino is obtained, it being understood that the total amount of the grant shall not be varied thereby. (f) The parties intend that grant funds be utilized within the time period covered by this Agreement, and entitlement to any funds not expended or obligated shall revert to the City, No reserve for the future shall be established with the fund except as may be authorized to meet commitments made for services provided during the period of this Agreement, but not yet paid for at the conclusion of this Agreement. (g) Subrecipient shall remain in compliance with all state, federal and local laws prior to the receipt of any reimbursement hereunder. This includes, but is not limited to, all laws and regulations relative to the form of organization, local business licenses and any laws and regulations specific to the business and activity carried out by Subrecipient. Reimbursement shall not be made to Subrecipient which is not operating in compliance with all applicable laws. Reimbursements may be subsequently paid, at the direction of the Executive Director of the Development Department for reimbursement costs incurred during the period when compliance is achieved before expiration of this Agreement. 3 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 5. ACCOUNTING: AUDIT (a) Prior to the final payment under this Agreement, and at such other times as may be requested by the Executive Director ofthe Development Department of the City of San Bernardino, Subrecipient shall submit to the Director an accounting of the proposed and actual expenditures of all revenues from whatever source accruing to the organization for the fiscal year ending June 30, 1995. (b) Financial records shall be maintained by Subrecipient in accordance with Generally Accepted Accounting Principles, and in a manner which permits City to trace the expenditures of funds to source documentation. All books and records of Subrecipient are to be kept open for inspection at any time during the business day by the City, its officers or agents, and by any representative ofthe United States Department of Housing and Urban Development authorized to audit Community Development Block Grant programs, (c) Standards for financial management systems and financial reporting requirements established by 24 CFR, Parts 85.20 and 85.22 shall be fully complied with by Subrecipient. Subrecipient acknowledges that the funds provided are federal funds. (d) Subrecipient's financial management system shall provide for accurate, current and complete disclosure of the financial results of each program sponsored by this Agreement. It is the responsibility of Subrecipient to adequately safeguard all assets of the program, and Subrecipient shall assure that they are used solely for authorized purposes. ( e) Subrecipient will be required to submit an audited financial statement during the monitoring visit by the City. 6, SERVICES AVAILABLE TO RESIDENTS: MONITORING AND REPORTING PROGRAM PERFORMANCE. The services of Subrecipient shall be made available to residents and inhabitants of the City of San Bernardino unless otherwise noted in Exhibit "A". No person shall be denied service because ofrace, color, national origin, creed, religion, sex, marital status, or physical handicap. Subrecipient shall comply with Affirmative Action guidelines in its employment practices. Subrecipient shall also monitor the program's activities and submit written reports quarterly, or more often if requested, to the Executive Director of the Development Department of the City of San Bernardino, in accordance with 24 CPR, Part 85.41 (c)(d) and Part 85.21. Failure to provide such quarterly 4 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 performance reports may prevent the processing by City of Subrecipient's requests for reimbursement, and may justifY temporary withholding as provided for in Paragraph" 11" hereof City reserves the right to waive such breach, without prejudice to any other of its rights hereunder, upon a finding by the Executive Director of the Development Department that such failure was due to extraordinary circumstances and that such breach has been timely cured without prejudice to the City. - 7. PROCUREMENT PRACTICES: CONFLICT OF INTEREST Subrecipient shall comply with procurement procedures and guidelines established by 24 CFR, Part 85.36 (d)(I), Subrecipient "Procurement Standards". In addition to the specific requirements of24 CPR, Part 85, Subrecipient shall maintain a code or standards of conduct which shall govern the performance of its officers, employees or agents in contracting with and expending the federal grant funds made available to Subrecipient under this Agreement. Subrecipient's officers, employees or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or potential contractors. To the extent permissible by state law, rules, and regulations, the standards adopted by Sub recipient shall provide for penalties, sanctions or other disciplinary actions to be applied for violations of such standards by either the Subrecipient's officers, employees or agents, or by contractors or their agents. Subrecipient shall provide a copy ofthe code or standards adopted to City forthwith, All procurement transactions without regard to dollar value shall be conducted in a manner so as to provide maximum open and free competition. The Subrecipient shall be alert to organizational conflicts of interest or non-competitive practices among contractors which may restrict or eliminate competition or otherwise restrain trade. Subrecipient agrees to adhere to conflict of interest provisions set forth in 24 CFR Section 570,611 and to the procurement rules specified in 24 CPR, Part 85.36, in its expenditure of all funds received under this Agreement. 8. ANTI-KICK BACK PROVISIONS: EOUAL EMPLOYMENT OPPORTUNITY All contracts for construction or repair using funds provided under this Agreement shall include a provision for compliance with the Copeland "Anti-Kick Back" Act (18 US.C. 874) as supplemented in Department of Labor Regulations (29 CPR, Part 3). This Act provides that each contractor or sub grantee shall be prohibited from inducing, by any means, any person employed in the construction, completion or repair of public work, to give up any part of the compensation to which he/she is otherwise entitled. Subrecipient shall report all suspected or reported violations to City. All 5 94' 2135 City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 contracts in excess of$10,000.00 entered into by Subrecipient using funds provided under this Agreement shall contain a provision requiring compliance with Equal Employment Opportunity provisions established by Executive Order Number 11246, as amended, 9, PREVAILING WAGE REOUIREMENT Any construction contracts awarded by Subrecipient using funds provided under this Agreement in excess of $2,000.00 shall include a provision for compliance with the Davis-Bacon Act [40 US,C. 276(a) to 276(a)(7)] and as supplemented by Department of Labor Regulations (29 CFR). Under this act, contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor. In addition, contractors shall place a copy ofthe current prevailing wage determination issued by the Department of Labor in each solicitation and the award ofa contract shall be conditioned upon the acceptance of the wage determination. Subrecipient shall report all suspected or reported violations to City. 10. APPROVAL OF CITY OF ANY CHARGES: USE OF PROGRAM INCOME (a) City hereby requires Subrecipient to notifY the City in writing, of its intent to charge a fee for any service, the provision of which is assisted pursuant to the Agreement. City requires Subrecipient to obtain the prior written approval of City for any charges or fees to be charged by Subrecipient for such services, and of any rules and regulations governing the provision of services hereunder, (b) Program income represents gross income received by the Subrecipient directly generated from the use of funds provided hereunder. Such earnings include interest earned on advances and may include, but will not be limited to, income from service fees, sale of commodities, usage and rental fees for real or personal property using the funds provided by this Agreement. As to such income, it shall be first applied to eligible program activities, before requests for reimbursement and, in the use, shall be subject to all applicable provisions of this Agreement. Income not so applied shall be remitted to City. Subrecipient shall remit all unspent program income to the City within thirty (30) days subsequent to the end of the program year (June 30, 1995). 6 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18,1994 11. TEMPORARY WITHHOLDING The Executive Director of the Development Department of the City of San Bernardino is authorized to temporarily withhold the payment of funds to Subrecipient when the Director determines that any violation of this Agreement has occurred. Funds shall be withheld until the violation is corrected to the satisfaction of the Executive Director. Subrecipient shall have the righLto appeal the decision of the Executive Director to the Mayor and Common Council. The sole grounds for such appeal sha11 be that no violation of the Agreement has occurred. Subrecipient shall file such appeal within fifteen (15) days after such first withholding. The Mayor and Common Council shall set a date for the hearing of such appeal which is within thirty (30) days following the date of filing. 12. RECORDS RETENTION Financial records, supporting documents, statistical records, and all other records pertaining to the use of the funds provided under this Agreement shall be retained by Subrecipient for a period of three (3) years, at a minimum, and in the event oflitigation, claim or audit, the records shaIl be retained until all litigation, claim or audit findings involving the records, have been fully resolved. Records for non-expendable property acquired with federal funds provided under this Agreement shall be retained for three (3) years after the final disposition of such property. 13. PROPERTY MANAGEMENT STANDARDS Non-expendable personal property, for the purposes of this Agreement, is defined as tangible personal property, purchased in whole or in part with federal funds, which has useful life or more than one (1) year and an acquisition cost of one-thousand dollars ($1,000,00) or more per unit. Real property means land, including land improvements, structures and appurtenances thereto, excluding movable machinery and equipment. Non-expendable personal property and real property purchased with or improved by funds provided under this Agreement shall be subject to the property management standards set forth in 24 CPR, Part 85.32. 14. TERMINATION FOR CAUSE (a) City reserves the right to terminate this Agreement in accordance with 24 CPR, Part 85.43, and any and all grants and future payments under this Agreement, in whole or in part, at any time before the date of completion of this Agreement whenever City determines that the Subrecipient has materially failed to comply with the terms and conditions ofthis Agreement. In the event City seeks to 7 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 terminate this Agreement for cause, City shall promptly notifY the Subrecipient in writing of the proposed termination and the reasons therefore, together with the proposed effective date. Subrecipient shaIl be given an opportunity to appear before the Mayor and Common Council at the time at which the Mayor and Common Council are to consider such recommended termination, and shall be given a reasonable opportunity to show cause why, if any exists, the Agreement should not be t~.rminated for cause. Upon determination by the Mayor and Common Council that the contract should be terminated for cause, notice thereof, including reasons for the determination, shall promptly be mailed to the Subrecipient, together with information as to the effective date of the termination. Such notice may be given orally at that hearing. The determination of the Mayor and Common Council as to cause shaIl be fmal, (b) In the event of any termination whether for cause or for convenience, Subrecipient shall forthwith provide to the Development Department any and all documentation needed by the Development Department to establish a full record of all monies received by Subrecipient and to document the uses of same. 15. TERMINATION FOR CONVENIENCE City or Subrecipient may terminate this Agreement in whole or in part provided both parties agree that the continuation of the project would not produce beneficial results commensurate with further expenditure of funds. In such event, the parties shall agree upon the termination conditions, including the effective date and, in the case of partial terminations, the portion to be terminated. The Subrecipient shall not incur new obligations for the terminated portion after the effective date and shall cancel as many outstanding obligations as possible. City shall allow Subrecipient full credit for the City's share of the non-cancelable obligations properly incurred by the Subrecipient prior to termination, 16, REVERSION OF ASSETS Subrecipient agrees that upon expiration of this Agreement, the Subrecipient shaIl transfer to the City any and all CDBG funds not used at the time of expiration and any accounts receivable attributable to the use of CDBG funds, Subrecipient agrees that any real property under its control, which was acquired or improved, in whole or in part, with CDBG funds in excess of$500.00 shall either, (i) be used to meet one (1) of the three (3) national objectives as set forth in 24 CPR, Part 8 94 285 City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 570.208 until five (5) years after expiration of the Agreement or such period of time as determined appropriate by the City, or; (ii) is disposed of in a manner which results in the City being reimbursed in the amount of the current fair market value of the property less any portion thereof attributable to expenditure of, or improvement to, the property by Subrecipient. Such reimbursement is not required after the period oftime specified in "i" above. 17. CDBG REOUIREMENTS FOR PROPERTIES OWNED BY A RELIGIOUS ENTITY Subrecipient agrees to all conditions and requirements set forth in 24 CFR, Part 570.483, Section (6) (ii) (A) (B) (C) (D) (E) (F) (G) regarding the use ofCDBG funds for the rehabilitation of a building(s) owned primarily by a religious entity. In particular, Subrecipient is apprised of and agrees to the following: A. The leased premises will be used exclusively for secular purposes available to persons regardless of religion; B. The portion of the cost of any improvements that also serve a non-leased part of the building will be allocated to and paid for by the Lessor; C, The Lessor will be required to enter into a binding agreement stating that unless the Lessee (Subrecipient), or a qualified successor Lessee, retains the use of the leased premises for a wholly secular purpose for at least the useful life of the improvements, the Lessor will pay to the Lessee (Subrecipient) an amount equal to the residual value of the improvements. D. The Lessee (Subrecipient) must remit the amount received from the Lessor as indicated above to the City from which the CDBG funds were received. 18. HOLD HARMLESS Subrecipient agrees to indemnity, save and hold harmless the City and the Development Department and their employees and agents from all liabilities and charges, expenses (including counsel fees), suits or losses, however occurring, or damages, arising or growing out of the use of or receipt of funds paid under this Agreement and all operations under this Agreement. Payments under this 9 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 Agreement are made with the understanding that the City and the Development Department are not involved in the performance of services or other activities of the Subrecipient. Subrecipient and its employees and agents are independent contractors and not employees or agents of City and the Development Department. 19, AMENDMENT This Agreement may be amended or modified only by written agreement signed by both parties, and failure on the part of either party to enforce any provision of this Agreement shall not be construed as a waiver of the right to compel enforcement of any provision or provisions. 20. ASSIGNMENT This Agreement shall not be assigned by Subrecipient without the prior written consent of City. 21. NOTICES All notices herein required shall be in writing and delivered in person or sent certified mail, postage prepaid, addressed as follows: AS TO CITY: AS TO SUBRECIPIENT: KENNETH J. HENDERSON Executive Director Development Department Economic Development Agency 201 North "E" Street, Third Floor San Bernardino, California 92401 Easter Seal Society 241 East Ninth Street San Bernardino, CA 92410 22. EVIDENCE OF AUTHORITY Subrecipient shall provide to City evidence in the form of a certified copy of minutes of the governing body of Subrecipient, or other adequate proof, that this Agreement has been approved in all its detail by the governing body of the Subrecipient, that the person(s) executing it are authorized to act on behalf of Subrecipient, and that this Agreement is a binding obligation on Subrecipient. 10 94 285 City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 23, CERTIFICATION OF ASSURANCE Subrecipient shall comply with the program requirements attached hereto as Exhibit "C", which are incorporated by reference as though fully set forth at length and made a part of this Agreement by execution of all certifications and assurances of the CDBG program. 24. ENTIRE AGREEMENT This Agreement and any document or instrument attached hereto or referred to herein integrates all terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations and prior writing in respect to the subject matter hereof In the event of conflict between the terms, conditions or provisions of this Agreement, and any such document or instrument, the terms and conditions of the Agreement shall prevail. 25, NO THIRD PARTY BENEFICIARIES No third party shall be deemed to have any rights hereunder against any of the parties hereto as a result of this Agreement. lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt lIlt fill 11 94-285 City of San Bemardino/Development Department Agreement - CDBG October 18, 1994 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first hereinabove written. CITY OF SAN BERNARDINO Easter Seal Society ~ern"lnLt,t~f!"-- TOM MINOR, Mayor City of San Bernardino ~~ President/CEO ATTEST ~. ./ ~~~ City of San Bernardino Approved as to form and legal content: JAMES F. PENMAN, City Attorney By#+JL,J 12 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 EXHIBIT AIB ~~}.:,~i:%:::::t.~WjW~;~~~~fMm~~t:m%~\ ,...M.0."'......~'nfi;.~.iSB""~ ~Ba.P~fQ~ij)\:to Program administration to provide counseling to individuals with traumatic and severe head injuries. support services are also provided to the families of head injury victims. Public Services $ 20,000 Other TOTAL $ 20,000 13 94 285 City of San Bernardino/Development Department Agreement - CDBG October 18, 1994 Plannin Desi Advertisement for Bids Bid 0 en Award of Contract Be . n Construction 50% Construction Com lete Construction 14 . 94 ~G5 City of San BernardinolDevelopment Department Agreement - CDBG October 18, 1994 EXHIBIT C CITY OF SAN BERNARDINO DEVELOPMENT DEPARTMENT I, "Certification and Assurance" (To Accompany CDBG Agreement) 8r"'1t1/l BoS/. (1:;:=:-0 , , of the (Name IlJId TItle ofOflicial) Easter Seal Society located at (Name of Agency/Organization) 241 East Ninth Street San Bernardino. California 92410 do hereby (Address of Agency!Orpniz&tion) make the following certification and assurance to accompany the Community Development Block Grant Agreemtmt between Easter Seal Society and the (Name of AgencyJOrganization) City of San Bernardino: a) CertifY that the information booklet for CDBG Program requirements has been read and understood, and b) Assure that the Easter Seal Society (Name of Agency/Organization) and will comply with all governing requirements as stipulated herewith in the performance of the CDBG Agreement. (? ~ ~I ~'e of Official II /; /r;:( Date LM:cdbg0003.agr:adw 15