HomeMy WebLinkAbout2006-127
RESOLUTION NO. 2006-127
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO: 1) APPROVING THE 2006-2007
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND
EMERGENCY SHELTER GRANT (ESG) APPROPRIATIONS AND
HOME CATEGORIES; 2) APPROVING THE 2006-2007
CONSOLIDATED ANNUAL ACTION PLAN AND ANALYSIS OF
IMPEDIMENTS (AI); 3) AUTHORIZING THE MAYOR TO EXECUTE
AND SUBMIT TO HUD NECESSARY DOCUMENTS AND TAKE ALL
NECESSARY ACTIONS FOR THE EXECUTION OF ANY CONTRACTS;
AND 4) APPROVING THE FIVE (5) YEAR IMPEDIMENTS TO THE
FAIR HOUSING PLAN
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WHEREAS, the City of San Bernardino is an entitlement city and eligible to participate
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in the United States Department of Housing and Urban Development's (HUD) Community
Development Block Grant (CDBG), HOME and Emergency Shelter Grant (ESG) Programs for
Program Year 2006-2007; and
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WHEREAS, the Mayor and Common Council desire to submit to HUD the City's
Consolidated Annual Action Plan 2006-2007; and
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WHEREAS, the Mayor and Common Council desire to execute Contracts to provide a
variety of community services through certain public service agencies for the 2006-2007 CDBG
and ESG Program Year; and
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WHEREAS, the Mayor and Common Council desire to approve the Five-Year (5)
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Analysis ofImpediments (AI) to Fair Housing Choice.
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NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED
BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
FOLLOWS:
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Section 1.
That the Mayor and Common Council hereby approve the
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recommendations noted in Attachment I(b) to the May 15,2006 Staff Report pertaining to the
allocation of 2006-2007 Community Development Block Grant (CDBG) funds, Emergency
Shelter (ESG) Grant and the HOME funds.
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2006-127
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Section 2. That the Mayor and Common Council hereby approve the 2006-2007
Consolidated Annual Action Plan and Analysis of Impediments (AI) attached hereto.
Section 3. That the Mayor is authorized to execute and submit to the U.S.
Department of Housing and Urban Development, (HUD) all appropriate documents and to take
all necessary actions to implement the City's 2006-2007 Annual Action Plan, including, but not
limited to, the preparation and execution of CDBG and ESG standard Agreements with the
respective public service agencies, as prepared and approved by the City Attorney and/or
Agency Counsel, a copy of which is on file with the Agency Secretary, and incorporated herein
by reference as though fully set forth at length.
Section 4. This Resolution shall take effect upon its adoption and execution in the
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manner as required by the City Charter.
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2006-127
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO: 1) APPROVING THE 2006-2007
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND
EMERGENCY SHELTER GRANT (ESG) APPROPRIATIONS AND
HOME CATEGORIES; 2) APPROVING THE 2006-2007
CONSOLIDATED ANNUAL ACTION PLAN AND ANALYSIS OF
IMPEDIMENTS (AI); 3) AUTHORIZING THE MAYOR TO EXECUTE
AND SUBMIT TO HUD NECESSARY DOCUMENTS AND TAKE ALL
NECESSARY ACTIONS FOR THE EXECUTION OF ANY CONTRACTS;
AND 4) APPROVING THE FIVE (5) YEAR IMPEDIMENTS TO THE
FAIR HOUSING PLAN
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
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Common Council ofthe City of San Bernardino at a j t. regal ar
meeting thereof, held
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on the 15th day of May
Council Members: Ayes
ESTRADA X
BAXTER ---1L
MCGINNIS ~
DERRY --X-
KELLEY x
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JOHNSON * ---1L
MC CAMMACK
, 2006, by the following vote to wit:
Absent
Abstain
Nays
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*abstained on item #4 only
~h.~
Racliel G. Clark, City Clerk
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The foregoing resolution is hereby approved this
day of
May
,2006.
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1. Morris,
San Bernardino
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A proved as to Form:
.f~
es F. Penman, City Attorney
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2006-127
CONSOLIDATED ANNUAL ACTION PLAN FOR PROGRAM YEAR 2006-2007
Introduction .............................................................................................................................. .....1
I. Strategy Implementation...... ...... ... ... ... ... .... ... ... ... ... ... ... ........ ..... ..... ..... ..... ..... ... ............... .......2
A. Funding Sources and Available Programs....................................................................3
B. Support of Applications by Other Entities ...................................................................5
C. Priority Investment Plan ...............................................................................................6
D. Non-Housing Community Development Needs.........................................................11
E. Geographic Distribution .............................................................................................19
F. Service Delivery and Management.............................................................................20
II. Other Actions ... ... ... ... ..... ... ............. ... ... ... .... ... ... ... ... ... ..... ... ..... ..... ..... ..... ..... ..... .......... ... .... ..20
A. Public Policies. .............. .......................................................................... ......... ........ ..20
B. Institutional Structure................... ......................... ........ .................... .............. ...........20
C. Public Housing Improvements ...................................................................................21
D. Public Housing Resident Initiatives ...........................................................................21
E. Lead Based Paint Hazard Reduction ..........................................................................21
m. Anti-Poverty Strategy. ................................................. ........ ..... .................. ........................ .21
IV. Coordinating Services.......................................................... ............................................ ...21
V. ProgramlProject Monitoring............... ...... ................ ..................... .................................. ....21
VI. Program Requirements ... ... ... ... ... ....... ... ... .... ... ... ... ... ... ..... ... ..... ... ..... ..... ........ ... ......... ...........22
A. Specific CDBG Grant Program Submission Requirements .......................................22
B. Specific HOME Submission Requirements ...............................................................23
C. Specific ESG Submission Requirements ...................................................................24
NOTE: On file with Agency Secretary
APPENDIX A - Listing of Proposed Projects
APPENDIX B - Required Certifications
APPENDIX C - Public Comments
APPENDIX D - Public Notice
APPENDIX E - Grants Application Forms (Form 424)
CDBG
HOME
ESG
APPENDIX F - Analysis of Impediments (AI)
2006-127
CONSOLIDATED ANNUAL ACTION PLAN
FOR PROGRAM YEAR 2006-2007
INTRODUCTION
The City of San Bernardino has provided leadership in developing community strategies for providing
decent, affordable housing, a suitable living envirorunent and expanded economic opportunities for all
households within our City. The City has developed viable partnerships with the private sector that
include: financial institutions, real estate professionals, developers and private businesses. San
Bernardino has been at the helm in developing strong collaboration with for-profit and nonprofit
organizations to access federal and state programs to increase housing opportunities for low- and
moderate-income households, eliminate blight, and provide necessary public support services for
families or individuals in need of assistance, as well as address needed public facilities, infrastructure
improvements and entice economic development activities.
The City has established its approach of developing goals and objectives that will have a long- term
stabilizing impact on City neighborhoods through the concentration ofresources on eight specific
citywide priorities detailed in I. Strategv Implementation. The City involves its citizens in
determining needs, issues and the designing of programs and activities to address those needs and
issues. The City coordinates the efforts of its City Departments to meet the identified housing needs,
and utilizes housing programs and projects to create sufficient visual impact intended to stimulate
additional private investment in the City's housing stock and diversified neighborhoods.
For 2006-2007 Program Year, the City will be awarded federal entitlement funds in the amount of
$5,388,329 under the following programs: Community Development Block Grant (CDBG) Program,
$3,647,079; the HOME Partnership Investment Act (HOME) Program, $1,563,059; American
Dream Downpayment Initiative (ADDI), $22,321; and $155,870 in the Emergency Shelter Grant
(ESG) Funds.
The Annual Action Plan contains the following sections:
I. Strategv Implementation Strategy Implementation details the City's investment plan for
Fiscal Year 2006-2007. The investment plan includes funding sources and available
programs, a matrix chart that details funding levels and number of households to be assisted
under each priority; the geographic allocation of resources; and a plan for delivery service
and management.
II. Other Actions Other Actions states the City's proposed actions to ameliorate the negative
impacts of public policies, to examine and modify, if necessary, the institutional structure
that will improve service delivery, to improve public housing, to undertake public housing
resident initiatives and to reduce the hazards associated with lead-based paint.
III. Anti-Povertv Strategv The Anti-Poverty section contains the City's strategy to reduce the
number of households with incomes below the poverty line.
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IV. Coordinating Services This section describes the City's plan to increase and improve
coordination between public and private housing and social service agencies located in the City
of San Bernardino
V. ProgramlProiect Monitoring This Section describes the process the City will undertake to
ensure sub-recipients of federal funds are in compliance with federal and local regulations and
requirements.
VI. Program Requirements Program requirements contain two required certifications that the City
will affirmatively further fair housing and is following a residential, displacement and relocation
plan.
VII. Summary of Citizen Comments Citizens Comments summarizes written comments received
during the public review period and describes how comments were addressed, if applicable.
I. STRATEGY IMPLEMENTATION
The mission of the City of San Bernardino is to actively and aggressively improve, develop and
maintain quality neighborhoods and provide housing opportunities throughout the City of San
Bernardino. The City has identified eight priority areas to pursue and focus on in the Five-Year
Consolidated Plan (2005-2010). The Eight Priorities are:
Priority #1: Preservation and Rehabilitation of Existing Single Family Dwellings
Priority #2: Expand Homeownership Opportunities and Assist Homebuyers with the Purchase of
Affordable Housing Permanent (Existing and New Construction)
Priority #3: Provide Rental Assistance and Preserve Existing Affordable Rental Housing
Priority #4: Assist Homeless and Special Needs Persons with Supportive Services
Priority #5: Expansion of "Affordable" Housing Opportunities New Construction
Priority #6: Promotion of Economic Development and Employment Opportunities for Low- and
Moderate-Income Households
Priority #7: Improve and Expand Infrastructure to Meet Current and Future Needs
Priority #8: Elimination of Identified Impediments to Fair Housing through Education,
Enforcement, and Testing
The City's strategy is to effectively utilize and aggressively seek federal, state, redevelopment, local and
private resources to operate and implement a number of programs to assist households in each of the
eight Priority Areas. The following is a detailed chart of funding sources and a summary of each ofthe
priorities listed in the Five-Year Strategy section ofthe Consolidated Plan. Also included are One Year
Objectives that have been established by the City and a proposed plan for service delivery and
management.
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A. Fundin2 Sources and Available Pr02rams
1. Funding Sources Anticipated to be Available for Programs and Activities. The financial
resources expected to be available to carry out and implement projects and activities identified
for the 2006-2007 fiscal year are:
FEDERAL SOURCES
Proerams
Community Development Block Grant (CDBG)
CDBG Program Income
HOME Investment Partnership
(American Dream Downpayment Initiative [ADDI])
HOME Program Income
Emergency Shelter Grant ESG
HUD Section 202 Program (AHEP A Senior Housing)
AHEP A RDA Low/Mod Funds
Continuum of Care & Shelter Plus Care
San Bernardino Housing Authority Housing Choice Voucher Program
San Bernardino Housing Authority Public Housing
HUD Section 108 Loan (Mercado Santa Fe and Arden Guthrie
Retail/Commercial Projects)
TOTAL
Resources
$ 3,647,079
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1,563,059
22,321
330,000
155,870
11,000,000
840,000
5,071,425
16,890,432
4,834,128
7.500.000
$51.854.314
LOCAL RESOURCES
Proerams
RDA Tax Increment Funds (Approximately)
RDA 20% Housing Funds
City General Fund and State Funds (Refer to Table 7)
TOTAL
Resources
$23,671,000
4,734,200
24.589.400
$52.994.600
NONPROFIT AND FOR PROFIT SOURCES
Proerams
Non Profit Partners In-kind Donations (Approximately)
Developer Investment (Approximately)
Private Lending Institutions (Approximately)
TOTAL
Resources
$ 7,382,616
140,000,000
50.384.000
$197.766.616
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2. Available Programs for which the City Does Not Intend to Apply. The City of San
Bernardino will not apply for the following federal resources during FY 2006/2007:
Rural Homeless Honsing
The City will not apply for Rural Homeless Housing Funds because there are no rural areas
located within the City. Competitive Programs Table Support of Applications on the
following page indicates that the City will support applications made by other entities for
federal grant funds with the exception of Rural Homeless Housing.
3. Circumstances under which the City would not certify that applications of other entities
are consistent with the Consolidated Plan:
During fiscal year 2006-2007, the City shall support the efforts of San Bernardino County
agencies, non-profit and other entities in their applications for funding from all available
funding sources. However, the City will not support agencies' applications, ifsuch applications
are not consistent with the City's 2005-2010 Consolidated Plan. The circumstances under
which the City will not support such applications are:
a. There is no demonstrated ability by the applicant to carry out the activity/project in a
timely manner.
b. Type of activity, size of proposed project, and lack of implementation plan to
successfully complete and maintain the project.
4. Plan for Leveraging Private and Non-Federal Funds by Use of Federal Funds. Local funds
will be leveraged to the greatest extent possible by using it as "seed money" or local match for
programs funded by state or federal government and/or private enterprise. Financial assistance
may be provided as grants or loans, and may include equity participation.
5. Matching Fund Requirements. The City was notified that for Program Year 2006-2007, the
City is exempt from Matching Fund Requirements relative to the Federal HOME Program.
Emergency Shelter Grant (ESG) Program. In-kind resources and private donations will be
utilized by the non-profit service providers with the ESG Grant. Other eligible public/private
sources will be actively pursued when feasible.
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B. Support of Applications by Other Entities
u.S. Department of Housing and Urban Development
CPD Consolidated Plan
Support of Applications by Other Entities Report
Fundin~ Source
Support Application
by Other Entities?
FormulaJEntitlement Programs
ESG
y
Public Housing Comprehensive Grant
y
Competitive Programs
HOPE 1
y
HOPE 2
y
HOPE 3
y
ESG
y
Supportive Housing
y
HOPW A
y
Safe Havens
y
Rural Homeless Housing
N
Sec. 202 Elderly
Sec. 811 Handicapped
Moderate Rehab SRO
y
y
y
Rental Vouchers
y
Rental Certificates
y
Public Housing Development
y
Public Housing MROP
y
Public Housing ClAP
y
LIHTC
y
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C. Priority Investment Plan
The following illustrates activities the City of San Bernardino expects to address and allocate federal
funds and other resources in fiscal year 2006-2007. The City will undertake priority needs in terms of
local objectives that were identified in the City's Five-Year Consolidated Plan.
Priority #1: Preservation and Rehabilitation of Existing Single Family Dwellings
Under Priority #1, the City seeks to actively maintain, improve and develop quality neighborhoods and
housing opportunities throughout the entire City. The program activities are described in detail in the
Five-Year Consolidated Plan. The following table provides the funding source, amount of planned
funding, households to be assisted, and activity to be undertaken.
TABLEt
CITY OF SAN BERNARDINO
Priority #t: Preservation and Rehabilitation of Existinl! Sim"e Familv Units
Activity Funding Planned Households
Undertaken Source Fundin!! to be Assisted
Housing Improvement Program Single Family RDA Housing Fund $1,280,00 130
units and mobile homes/N eighborhood 0
Housing Service (NHS)
Neighborhood Improvement Program (NIP) $300,000
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Senior Old Timers Grant RDA Housing Fund $75,000
220
Utility Assistance Program RDA Housing Fund $65,000 Households
Sources; City olSan Bernardino StajJEstimates.
Priority #2: Expand Homeownership Opportunities and Assist Homebuyers with the Purchase of
Affordable Permanent Housing (Existing and New Construction)
The City will concentrate a portion of its affordable housing funds on providing low- to moderate-
income households with the opportunity to own their own home. This effort will be approached with
the programmatic tools discussed in the Five-Year Consolidated Plan. Table 2 lists the amount of
funding, the Funding Source, and projected number of households to be assisted.
American Dream Downpayment Initiative (ADDI) - ADDI was signed into law on December 16, 2003.
ADDI funds are used to increase homeownership among lower-income and minority households at 80%
and below of area median income. The amount of assistance provided to any family will not exceed the
greatest of six percent of the purchase price of a single-family housing unit or $10,000. The City will
receive $22,321 in ADDI funds and will use these funds in tandem with HOME funds allocated for
homeownership assistance.
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TABLE 2
CITY OF SAN BERNARDINO
Priority #2 - Expand Homeownership Opportunities and Assist Homehuyers with the Purchase of
Affordahle Housin!! Permanent IEnstin!! and New Construction)
Activity Funding Planned Households
Undertaken Source Funding to be Assisted
Mortgage Assistance Program (ExistingfNew RDA Housing Fund $2,400,000 17
Construction- MAP Programs, Cal State Federal HOME Funds $400,000
University San Bernardino Professor's Private Investment $10 Million
Homebuyer Program)
TELACU Development Corporation TELACU $3 Million 13
(49" Street Single-Family Development) HOME Funds $1,000,000
Homebuyer Education HOME $130,000 225
Meadowbrook Park Homes (Single Family) Private Investment $2,000,000 4
HOME Funds $1,500,000
RDA Housing Fund $2,000,000
AGA Properties, LLC Private Investment $8,400,000 24
6th and 8th (24 Townhomes) HOME Funds $1,000,000
RDA Housing Fund $4,000,000
Arroyo Development Company Private Investment $1.2 Million 4
HOME Funds $550,000
Habitat for Humanity HOME Funds $60,000 I
Private Investment
Old Towne Housing Development HOME Funds $600,000 6
(Creative Housing Solutions) Private Investment $3 Million
RDA Housin. Fund $200,000
Sources: City afSan Bernardino Staff Estimates, Private Developers Estimates.
Priority #3: Provide Rental Assistance and Preserve Existing Affordable Rental Housing
Under Priority #3, the City, with the assistance of the Housing Authority of San Bernardino County, will
assist very low- and low-income households with rental payments to alleviate rent burden,
overcrowding and unsafe or unsanitary living conditions. In addition, the City plans to facilitate the
development of new senior rental housing projects for low-income seniors.
According to San Bernardino's County Department of Human Services, 64,262 households living in the
City of San Bernardino relied on some form of public aid, i.e" Cash Aid, Food Stamps and/or MediCal
during the year 2005. In addition, according to San Bernardino Unified School District's Research and
Statistical Department, of the 59,105 students enrolled, 82% qualify for the District's "Free and
Reduced Lunch Programs."
Two factors that contribute to this steady increase are: I) the declining of "affordable housing" in Los
Angeles and Orange Counties causing families to migrate to San Bernardino County; and, 2) the impact
of economic opportunities that plague our local economy. As a consequence, the City projects a high
level need for housing assistance during the 2006-2007 Program Year. Table 3 summarizes the
activities to be undertaken, funding sources, funding amounts and projected number of households to be
assisted.
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TABLE 3
CITY OF SAN BERNARDINO
Prioritv #3: Provide Rental Assistance and Preserve Existin.. Affordable Rental Housin..
Households or
Activity Funding Planned Units to be
Undertaken Source Fundin.. Assisted
Housing Choice Voucher Program Section 8 $16,890,432 2,636
Highland Lutheran Senior Housing Section 8 $1 Million 50
RDA Housing Fund $115,000
Rental Assistance Program RDA Housing Fund $500,000 125
St. Bemardine's Senior Housing Section 8 $2 Million 150
Ramona Senior Housing RDA Housing Fund $113,000 42
AHEP A Senior Housing Section 8 $1.2 Million 50
Cooperative Senior Housing Section 8 $1 Million 75
TELACU Senior Housing I, II & III Section 8 $6 Million 225
Sources; City of San Bernardino Staff Estimates; County of San Bernardino Housing Authority Estimates,
Private Developer Estimates.
IPriori(v #4: Assist Homeless and Special Need Persons with Supportive Services
Under Priority #4, the City provides housing assistance and supportive services to San Bernardino's
homeless population, "at-risk" population, and other "special needs" population identified by the City
and its service providers. Priority #4 includes the City's strategies for transitional and emergency
shelters for the homeless, the prevention ofhomelessness and helping the homeless make a transition to
permanent housing. Other services to be funded include child care, senior services, job training, crisis
intervention, counseling, medical assistance and after school programs. The following table details the
funding sources, planned funding amounts and households to be assisted through various social service
programs in fiscal year 2006-2007.
The entitlement amount for the 2006-2007 Emergency Shelter Grant (ESG) Program is $155,870. The
City also allocated $65,000 in CDBG public service funds for homeless or transitional housing
programs. Existing programs that have proven their performance and effectiveness will continue to be a
priority for ESG funding during Program Year 2006-2007. The following have been recommended:
Central City Lutheran Mission, 1139 Perris Street
$12,000 for the provision of providing Essential Services for the treatment and counseling of substance
abuse. This program services homeless individuals in need of medical treatment and/or counseling.
Participants can remain in the program as long as treatment and programs are being followed. ESG
funds will be used to pay for a portion of staff salaries.
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Foothill AIDS Project (FAP), 362 Orange Show Lane
$9,000 for the provision of Homeless Prevention. This project will assist individuals who are homeless
or at risk of becoming homeless. The organization works in collaboration with County Housing
Authority. The FAP organization will utilize ESG funds as a "one-time" assistance to individuals or
families who need "move-in" assistance, i.e., first month's rent, security deposit, utilities, etc. A
Housing Service Plan will be developed and other supportive services will be provided.
Frazee Homeless Shelter, 1413 Kendall Avenue
$12,000 for the provision of Maintenance & Operations for shelter services. The Frazee shelter
provides services to homeless men. The Kendall Avenue site can serve eight individuals at any time.
The minimum stay is one (I) night; the maximum stay is six (6) months. Each person enters into a plan
to get them back to work or is assisted in securing permanent benefits, i.e., Social Security, veteran's
pension, etc. Ninety (90%) of their clients are veterans. ESG funds will be used for utilities and
consumable supplies.
Mary's Mercy Center, 641 Roberts Avenue
$20,000 for the provision of providing Essential Services for a day shelter that includes showers,
laundry facilities and emergency food bags. Mary's Mercy Center provides a facility for homeless and
low-income individuals by offering a drop-in "day center", showers/hygiene, meals, clothing, infant
emergency needs and bus passes. Counseling services are provided on a weekly basis. ESG funds will
pay for staff and consumable supplies for the day shelter.
Option House, Incorporated - P.O. Box 970
$19,870 for the provision of providing Temporary Crisis Intervention Program. Option House is a
family/domestic violence intervention and prevention services agency. Program houses up to fourteen
(14) women and their children for up to 60 days. Residents live in a "home-like" environment and
focus on putting their lives back on track. Option House also has a satellite office in the County
Courthouse. ESG funds will assist with staff salaries and utility costs.
Salvation Army - 845 W. Kingman
$65,000 for the provision of providing Maintenance & Operations for the Salvation Army's Emergency
Shelter. The Salvation Army's shelter can accommodate seventy-four (74) individuals per day. The
City's Police Department, social services and hospitals "refer" or "take" clients to the Salvation Army
for emergency shelter. A job referral program is also offered. Clients who secure employment are
allowed transitional living at the shelter for an extended period of time. ESG funds will be used for
staff salaries and consumable supplies.
New House, Inc. - 2075 North Arrowhead Avenue
$10,000 Incorporated in 1978, this organization is one of the first State certified residential treatment
facilities for substance abuse. This is the first treatment facility in California that allows children in to
accompany their parents. ESG funds will assist with security deposits and short-term subsidies to
clients who are living in and participating in New House's Sober Living Programs.
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Time for Change Foundation - 2130 North Arrowhead Avenue, #104B
$8,000 Time for Change began their transitional housing program in September 2002. This transitional
housing facility is for women who are exiting drug rehab programs or exiting from prison. In 2003, this
organization became a non-profit and expanded its service delivery to include full re-entry services to
women and their children. ESG funds will be utilized for utilities and a portion of consumable supplies.
New programs that will close gaps in San Bernardino's continuum of care are also a funding priority.
Emergency Shelter Grant (ESG) projects recommended for funding are consistent with the priorities and
needs established in the City's 2005-2010 Five-Year Consolidated Plan. The City will continue to
leverage non-HUD funding sources, i.e., City General funds, Redevelopment Set-Aside funds, Cal-
Works funds, as well as state, county and private funding.
The City will continue to collaborate closely with Community Action Partners of San Bernardino
County, a private, nonprofit, public benefit corporation whose mission is to reduce the causes and
conditions of poverty and to develop and implement a coordinated plan to address homelessness in San
Bernardino County.
Grants for shelter and care programs have been awarded to sixteen (16) entities for 2005. These
awarded projects will provide homeless services throughout San Bernardino County. The entities are
identified as follows: I) Institute for Urban Research and Development $2,192,400; 2) Community
Action Partnership of San Bernardino County $750,477; 3) Community Action Partnership of San
Bernardino County $1 ,995,040; 4) Morongo Basin Mental Health Services Association, Inc. $87,606; 5)
Central City Lutheran Mission $76,794; 6) Inland Temporary Homes $69,402; 7) Foothill Family
Shelter, Inc. $34,125; 8) Inland Behavioral and Health Services, Inc. $367,063; 9) New Hope Village,
Inc. $66,675; 10) Knotts Family Agency $420,000; II) Luvlee's Residential Care, Inc. $912,150; 12)
The Salvation Army $158,522; 13) Frazee Community Center $26,250; 14) Victor Valley Domestic
Violence, Inc. $276,379; 15) Central City Lutheran Mission $17,672; 16) St. John of God Health Care
Services $311,960.
Clients will be educated on how to access services available in their community, including public health
programs and other social service organizations.
TABLE 4
CITY OF SAN BERNARDINO
Prioritv #4: Assist Homeless and Snecial Need Persons with Sunnortive Services
Activity Funding Planned Households
Undertaken Source Fundin2 to be Assisted
Emergency Shelter Grant Program ESG $155,870 2,100
(Emergencyffransitional Programs) CDBG $72,000
Central City Lutheran Mission, Frazee In-Kind Private $6,500,000
Homeless Shelter, Mary's Mercy Center, New Donations
House, Incorporated, Salvation Army, Foothill
AIDS Project and Option House, Inc.
Community Action Partnership, Frazee Shelter + Care $7,762,515 450
Community Center, Saint John of God COC
Healthcare, Salvation Army of San Bernardino,
New Hope Village, Inc., Fontana Native
American Center, Central City Lutheran
Mission, Provisional Educational Services, Inc.
Sources: Citv o(San Bernardino Staff Estimates, Non-Profit OrJ!anizations.
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Under Priority #5, the Citywil1 concentrate on the development and construction of affordable housing
units for families earning less than one hundred twenty percent (120%) of area median income (AMI).
The programs to be utilized under this priority are described in the Five-Year Consolidated Plan. The
following table indicates the funding sources, funding amounts and number of households to be
assisted.
TABLE 5
CITY OF SAN BERNARDINO
Prioritv #5: Expansion of Affordable Housin!! Opportunities throuoh New Construction
Activity Fuuding Plapned Households
Undertaken Source Fundino to be Assisted
TELACU Single Family In-fill Private Investment $3 Million 13
(49'h Street Project) HOME Funds $550,000
AHEP A Senior Multi-Family Housing HUD $13 Million 90
HOME Funds $840,000
Mary's Mercy Expansion of Veronica's Private lnvestment $600,000 20
Home HOME Funds $800,000
HUD $1,700,000
Sources: City of San Bernardino Staff Estimates, Private Developer Estimates.
D. Non-Housing Community Development Needs
As previously noted in the Non-housing Community Development Needs Assessment, the availability
of Community Development Block Grant (CDBG) monies and other resources, will enable the City to
allocate funds to specific low-income neighborhood areas that are prone to neighborhood decline and
dilapidation. Through this effort the City reduces the risk of obvious delineation of lower income
neighborhoods; thereby promoting pride of homeowners hip and residency in all geographic areas within
the City limits and in turn, encouraging the economic empowerment of its low- and moderate-income
residents.
Priority #6: Promotion of Economic Development and Employment Opportunities for Low- and
Moderate-Income Households
Two of the City's highest priorities are: (I) to attract industries and employers that provide higher-
paying jobs and a wider range of employment opportunities, and (2) to assure that local residents have
the necessary skil1s to fill those jobs.
To implement said priorities, the City, in collaboration with other public agencies, such as San
Bernardino Employment and Training Agency (SBET A) and private enterprise developers, will pursue
strategies that promote the growth of production industries whose goods or services are sold to state,
national, or global markets to bring outside income into the community.
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SBET A's mission is to train the work force to business specifications and to increase jobs for residents.
SBET A partners with industry to produce a competitive work force. The SBETA Agency is under the
direction of the Mayor and the Workforce Investment Board, composed of business leaders and
educators. SBET A serves both the employer seeking trainable employees and City residents seeking
employment opportunities.
The primary entity to implement these priorities is the City's Economic Development Agency (EDA).
During the 2006-2007 fiscal year, the City's EDA will continue to support job creation,job retention,
training, education, downtown revitalization, and infrastructure improvement efforts. Federal assistance
in the form of a Section 108 loan, float loans, economic development initiatives and other financing
such as redevelopment funds will be the resources that will be sought or used to assist the City in
Priority #6.
Table 6 details the organizations that the City will contract with for the promotion of economic and job
creation.
TABLE 6
CITY OF SAN BERNARDINO
Priority #6: Promotion of Economic Development and Employment Opportunities
for Low- and Moderate-Income Households
Businesses
Activity Funding Planned to be Assisted
Undertaken Source Fundin!! or Jobs Created
Small Busincss Development Corporation In-Kind; Privatc $500,000 6
Institution and CDBG $20,000
National Development Corporation - Grow San In-Kind; Private $1,250,000 20
Bernardino Institutions and
Redevelopment Funds
CDBG $50,000
Business Incentive & Downtown Revitalization! Redevelopment Funds $250,000 20
Fa,ade Program Private Business $500,000
Contributions
Sources: City of San Bernardino Staff Estimates. Private Business Owners Estimates.
The Economic Development Agency's mission is to enhance the quality oflife for the citizens of San
Bernardino by attracting and retaining businesses and jobs, eliminating physical and social blight, and
developing a balanced mix of quality housing. The Community Investment Corporation Loan Program
offers up to $25,000 for entrepreneurs to expand an existing business or start a new business. These
funds can be used as working capital, to make tenant improvements, to purchase machinery and
equipment and other business necessities. Other programs offered by other agencies, such as the Inland
Empire Small Business Financial Development Corporation, Grow San Bernardino Fund SBA 7 (a)
Loan Program and the Small Business Administration 504 Loan Program offer larger loan amounts for
small businesses to expand their businesses or entrepreneurs to start a new business.
The principal tool used by the Agency in its eleven project areas is governed by redevelopment law and
consists of Owner Participation Agreements known as OPA's and Disposition and Development
Agreements known as DDA's. An OPA or a DDA can provide financial assistance to a project or
development over a number of years to be paid out of tax increment. Each one of these agreements is
unique to the specific project and intended to make redevelopment of a blighted condition economically
viable as well as act as a catalyst for future development in the area.
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Another program offered by the Economic Development Agency is the Business Incentive Grant, which
seeks to restore economic vitality and investment confidence to the City of San Bernardino. The
program offers financial assistance to help business owners and tenants enhance the curb appeal of their
businesses by financing exterior improvements to their business properties. The program also provides
grants to help business owners retain their current employment levels or expand their current
employment levels. The program offers grants reimbursements that are not-to-exceed $10,000. The
applicant will be required to match this grant dollar for dollar and will be reimbursed at the completion
of all pre-approved improvements.
Additional programs offered by the Agency to foster economic growth in the City are as follows: The
Business Utility User's Tax Rebate Program rewards new and expanding businesses who create jobs for
City residents, increase sales tax revenues and/or increase property values. The program rebates a
percentage of the City's utility tax levied on electricity, gas, video and telephone communication
services to the business over a period often years.
The Economic Development Action Team, also known as EDA T, assists larger projects that will add a
significant number of new jobs or significantly increase tax revenue for the City. EDA T is the best tool
for a fast, efficient passage through the City's Development process.
The Development/Environmental Review Committee or the DIERC is a team of specialists from various
City Departments who review the detailed technical needs and requirements of projects to ensure that
the project will comply with all applicable rules and regulations. For many projects, the D/ERC is the
review authority and can save time and money for the developer or applicant. The Business Liaison
Program assists businesses who encounter difficulties dealing with a City requirement midway through
their development or simply need help in interpreting the, at times, complicated development process.
The Business Liaison Program helps guide applicants through the City entitlement process.
BizNet was created by the Economic Development Agency and is a state-of-the-art technique utilizing
information technology, specifically online and CD-Rom databases, to promote business expansion
revenue generation, and job-creation. This program, administered in collaboration with the school of
Business and Public Administration at California State University, San Bernardino, helps companies
gain a better understanding of customers and competitors, both existing and potential, thus gaining a
more competitive edge in the market arena. In addition, the Agency and the City will facilitate the
development of the following proposed economic projects:
1. Commercial/Entertainment Center - Proposed project is the development of a Starbucks
Coffee Shop to be located at the following location: 4th and "E" Streets. The Agency is in
negotiations to sell the commercial 20,000 square foot site. It is estimated that 12 jobs will be
created and private investment is estimated at $1.5 million.
2. Anita's Restaurant and Bakery - Anita's Bakery is an existing small business that includes a
bakery and restaurant. The owner may be purchasing a 7,000 square foot vacant lot from the
Agency to construct a building that will create 5 new jobs and increase restaurant capacity.
Private investment is estimated at $1.5 million.
3. LNR Development - This project involves the purchase of an existing downtown Mall and the
development of a mixed-use project. The housing component is the proposed construction of
"living lofts", townhomes and condominiums. Total private investment is estimated at
$284,000,000.
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4. Century Crowell Vintage Homes (Bice Property) - Proposed project is the disposition of
Agency land and the development of 65 acres of vacant land to be subdivided for the
construction of279 single-family dwel1ings. Private investment is estimated at $100,000,000.
5. La Placitas Center - This project includes the proposed development of an approximate 96,000
square feet into a commercial center that wi\l include a major grocery store. The existing
structures wi\l be demolished and replace with the new center. It is estimated that six (6) new
businesses wil1 be established and 100 new jobs wi\l be created. Private investment is estimated
in excess of$15 mi\lion.
6. Hillwood Development (Culligan Property) - Proposed project is the construction of a 1.2
million square foot warehouse and distribution facility to be located on University and close to
the Interstate 215 freeway. Private investment is estimated at $50 million and potential1y 100
jobs wi\l be created.
7. ICO Investment Offices - Proposed project consists of a 2 to 3 story county office to be located
on the southwest comer of 4th and Waterman. The proposed facility is approximately 45,000
square feet and approximately 45 jobs wil1 be retained. Private Investment is estimated in
excess of $12 mi\lion. The Agency will sell to developer approximately 5 acres of vacant land
for the development of County offices.
Business Incentive Grant Program
The Business Incentive Grant Program assists business owners, tenants, and property owners to enhance
the "curb appeal" of their business storefront by providing funds to complete exterior improvements.
The Agency anticipates providing assistance up to twenty (20) businesses with their storefront
improvements. Public funds al10cated for the Program is projected to be $250,000 with private
investment funds projected at $500,000.
Utility User's Grant Program
The Business Utility User's Tax Rebate Program rewards new and expanding businesses who create
jobs, increase sales tax revenues, or increase property values by refunding a percentage of the City's
utility taxes paid on electrical, gas, cable, and telephone services to operate their businesses. During
program year 2006-2007, the Agency anticipates to process up to five (5) businesses applications
utilizing the Utility User's tax rebate.
California Theatre
The Agency owns and contracts out the maintenance of the Historic California Performing Arts Theatre
(the "Theatre"). Plans to begin phase II is slated for program year 2006-2007. The renovation
improvements include, but are not limited to the following items: upgrading of the first floor men and
women's restrooms and instal1ation of a fire protection sprinkler system for the entire Theatre. In
excess of $600,000 for this phase of construction is anticipated.
The above-referenced economic development projects wil1 facilitate the creation, promotion, and
retention of over 500 employment opportunities for City residents.
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In rastructure to Meet Current and Future Needs
The City's existing five-year Capital Improvement Program (2004-2009) represents a key community
and economic development tool to implement the priorities detailed in the Consolidated Plan. The
Capital Improvement Program allocates funding for targeted public investments that support
revitalization of the City's older neighborhoods and downtown San Bernardino as well as new
development projects that will create employment for local residents.
The San Bernardino Development Services Department is responsible for the maintenance and
improvement of the traffic control system, parks and recreation, public facilities such as fire stations,
storm drains, and sewers. Due to recent heavy rain events, some repair work on the City's storm drains
and sewer system will be required.
During the 2006-2007 fiscal year, the City proposes to spend $24,589,408 on capital improvements
detailed in Table 7. The Capital Improvements are funded from a variety of sources that include: Sales
Tax Fund, State Funds, Traffic Fees, Developers' Fees, Traffic Systems Fee Fund, Sewer and Storm
Drain Fund, Park Fee Funds, as well as the City's General Fund and Federal CDBG Funds.
Community Development Block Grant (CDBG) funds will be utilized to fund payment on fire
equipment leases and Code Compliance, for the continued effort towards reducing neighborhood blight
and substandard living conditions to work in concert with the Redevelopment Agency's housing
revitalization program.
Many of the City's low-income neighborhoods have higher incidents of code violations. There are a
number of factors that influence this higher rate, including an older housing stock, lack of return on
income investment, lower income residents with limited or fewer resources for housing maintenance.
The City will commit CDBG funds carryover for the clearance and demolition of substandard
structures.
TABLE 7
CITY OF SAN BERNARDINO
Prioritv #7: Exnand and Imnrove Existin" Infrastructure to Meet Current and Future Needs
The Capital Improvement Program is divided into six major sections as follows:
1. General Buildings
2. Streets and Street Lights
3. Sewer
4. Storm Drains
5. Traffic Controls
6. Parks and Recreation
1. GENERAL BUILDINGS
Proiect Descrintion FundinG Source Fundine: Amount
Fire Stations Repair Restrooms General Fund $75,000
City Yard Pavement Rehab Refuse $50,000
General Fund
City Yard Building Restoration Work General Fund $ 100,000
City Yard Block Wall (Phase II) General Fund $75,000
Code Compliance Enforce City's Code in Target CDBG $2,250,300
Areas (8 target areas) General Fund $1,000,000
TOTAL $3.550.300
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2. STREETS AND STREET LIGHTING
Proiect Descrintion Fundin.. Source Funding Amount
Pavement Rejuvenation Slurry Seal at Various Areas Gas Tax Fund $225,000
(Annual)
Miscellaneous Infrastructure Repair Structures in the Street Right- Gas Tax Fund $50,000
Repairs (Annual) of-way
Bus Stops (Aunual) Install Concrete Bus Pads at Bus y,~ Sales Tax Fund $25,00
Stops
School of the Month Program Gas Tax Fund $50,000
(Aunual)
Guard Rail Repair (Annual) Repair Guard Rails at Various y,~ Sales Tax Fund $100,000
Locations
Residential Street Repairs Repairs at Various Locations Gas Tax Fund $50,000
(Annual)
State Street Construction Bridges at Lytle Creek $5,000,000
(Phase 4)
40th Street Widen Street from Acre Lane to 1/2~ Sales Tax $500,000
Electric Avenue Fund
Hunts Lane Grade Separation Grade Separation on Hunts Lane at Street Construction $1,000,000
RR Tracks South of Redlands Blvd., Funds
(SanBAG)
State StreetlUniversity Avenue Grade Separation on University/State Street Construction $1,000,000
Grade Separation St., Cajon Blvd. at RR Tracks Funds
(SanBAG)
Palm A venue Grade Grade Separation on Palm Ave. and Street Construction $1,505,000
Separation Cajon Blvd. at RR Tracks (City) Fund
Old Towne San Bernardino Repair Streets and concrete with-in Gas Tax Fund $50,000
the down town area
Lena Rd. - Mill Street to Extend Lena Road 1I2~ Sales Tax $10,000
Orange Show Road Fund
Frontage Road Along 1-215 Construct New Road from Little Street Construction $600,000
League Dr. going along Flood Control Funds
Channel
Tippecanoe Avenue Pavement Rehab from San Ana River $1,000,000
toMillSt.
Mountain View Ave./3I" Pavement Rehabilitation $3,050,000
Street to north end
Tippecanoe Ave. 1-10 Interchange PSR (Local match) $4,000,000
Construction (Local match)
"H" Street Widen from Kendall Drive to 40th $350,000
Street
Marshall Blvd. from "E" Pavement Rehabilitation Gas Tax Fund $50,000
Street to Little Mountain Ave.
TOTAL $18.615000
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3. SEWERS
Proiect Descrintion Fnndinll Sonrce Fundinll Amount
Sewer Main Extensions In excess of 300"' for SFR Sewer Line $150,000
Development Construction Fund
Sewer Main Extension of Mains and Line Sewer Line $100,000
extension engineering Construction Fund
Rehabilitate Manholes Repair or reconstruct failing Sewer Line $50,000
manholes City Wide Construction Fund
TOTAL $300.000
4. STORM DRAINS
Proiect Descrintion Fundinll Sonrce Fundinll Amount
Cross Gutters and Various Locations Storm Drain $50,000
Drainage Inlet Repairs Construction Fund
Box Culvert Repairs Various Locations Storm Drain $50,000
Construction Fund
Vision Creek Combination linear Park with Storm Drain $1,666,000
Streams, Ponds & Business Park Construction Fund
State Street Storm Drain Install Master Plan Storm Drain Storm Drain $308,400
from the 1-210 Freeway Construction Fund
Install Storm Drains at Orange St., Highland Ave. to Love $150,000
Various Locations Lane & Love Lane, Orange St. to
Victoria Ave.
Install Storm Drain at "E" Along Railroads Tracks "G" Street $250,000
Street to Lytle Creek
TOTAL $2474.400
5. TRAFFIC CONTROLS
Proiect Descrintion Fundin.. Source Fundin.. Amount
Traffic Signal and Upgrade Traffic Signals and Signal Traffic Systems $150,000
improvements and Improvements (05/06) Fee Fund
Rialto A venue and Install New Traffic Signal Traffic Systems Fee $80,000
Meridian Avenue Fund
Mt. Vemon Avenue Install Interconnect & PPB from Traffic Systems Fee $250,000
Mill Street to Highland Avenue Fund
"E" Street and Orange Install New Traffic Signal Traffic Systems Fee $90,000
Show Lane Fund
Sterling A venue and 6th Install New Traffic Signal Traffic Systems Fee $100,000
Street Fund
University Loop Ramp Traffic Systems Fee $150,000
Fund
Sierra Way & 21" Street Install New Traffic Signals $120,000
TOTAL $940 000
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6. PARKS AND RECREATION
Proiect Deserintion Fundin!! Source Fundin!! Amount
Verdemont Master Park Construction Park Bond Funds $250,000
and Trail Plan
Miscellaneous Parks Park Construction $25,000
Construction Fee Funds
Identify & Design Five $50,000
(5) Pocket Park Sites
throughout the City
Fiscallini field - Upgrades $200,000
Design for two (2) New AT Delmann Heights & Nicholson $100,000
Gymnasium Facilities Center
Fifth Street Senior Center Design for a Therapeutic Pool $60,000
Facility
Palm Irvington Funding TBD $40,000
Neighborhood (4 acres)
Park
Al Guhin Park Baseball $500,000
Fields
TOTAL $1.225 000
Source: City of San Bernardino Capita/Improvement Program 2004-2005.
Priority #8: Elimination of Identified Impediments to Fair Housing through Education,
Enforcement, and Testinl!
To support the City's efforts in increasing housing availability and accessibility for low- and moderate-
income households, for 2006-2007 the City has allocated $45,000 of CDBG funds for a Fair Housing
contract with the Inland Fair Housing Mediation Board of San Bernardino County (IFHMB). The
IFHMB will provide $455,000 of private funds for administration. The City supports a number of
programs and services to promote fair housing, including:
. Education workshops on State and federal fair housing laws.
. Mediation and complaint resolution.
. Monitoring of compliance by individuals and organizations involved in the sale, financing, renting,
advertisement, and management of housing.
. Financial assistance and economic development programs to Increase incomes for low- and
moderate-income households.
. Provide homeownership opportunities in the community promoting the first time homebuyer
program.
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Current studies of impediments to fair housing and monitoring of compliance have concluded that the
primary difficulties faced by low- and moderate-income households relate to their financial
circumstances. Most complaints submitted to the Inland Mediation Board involve Fair Housing and
landlord-tenant disputes. The complaints filed involve tenants' rights, evictions and security payments
and property maintenance issues. There appears to be a disproportionate number of complaints filed by
female-headed households with children, which could indicate that some single mothers experience
difficulties in obtaining suitable housing for their families.
In light of these findings, the City will continue to implement programs and support efforts by other
agencies to improve economic opportunities for low- and moderate-income households, increase
housing availability (particularly homeownership), assist other agencies in providing child care and
supportive services for families with children, and ensure that single parents are not unreasonably
restricted in their housing choices.
TABLE 8
CITY OF SAN BERNARDINO
Prioritv #8: Elimination of ImnPrliments to Fair Housln2 tbroueh Edneatlon Enforeement. and Testln2
Activity Funding Planned Households
Undertaken Source Fundin2 * to be Assisted
Fair Housing/Landlord/Tenant Program In-Kind $220,000 2,550
Education Seminars In-Kind $120,000 5
Enforcement - Advertisement In-Kind $80,000 5
Sources: City olSan Bernardino Staff Estimates, Inland Mediation Board Staff Estimates.
. {ncludes $45.000 ofCDBG Funding.
The impediments identified in the City's Analysis are:
. Lack of knowledge and awareness of Fair Housing Laws makes it impossible for residents to
recognize discriminatory practices by housing providers and lenders.
. Recommended Action: Increase the level of education through various means such as newsletters,
workshops, paid public announcements on the radio, community billboards, and personal interviews
on local cable television.
. Lack of housing opportunities for a wide spectrum of City residents that include large families.
. Recommended Action: The City will continue to pursue affordable housing development programs
as identified in the Housing Element.
E. Geo2raphic Distribution
The City's Economic Development Agency (EDA), administrator of the federal programs and other
redevelopment housing programs, will concentrate most of its rehabilitation and preservation programs
and activities on a citywide basis through the Single-Family unit and Mobile Home Maintenance Grant
Programs for low- and moderate-income owners.
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F. Service Delivery and Mana2ement
The EDA has the lead responsibility for the development and implementation of the City's
comprehensive housing affordability strategy.
The current five-year strategy incorporates all anticipated funding sources: federal, state, tax increment,
local funding, redevelopment, and private financing. These funds create single and senior multiple
housing and other identified special needs construction. The types of housing which will receive the
greatest level of advocacy by the City will be housing for the elderly, handicapped, special needs
populations and low- and moderate-income families. EDA will continue to focus on all of these new
construction, rehabilitation and special needs housing issues in fiscal year 2006-2007.
Numerous projects require the need to involve private developers, as well as non-profit developers, in
order to enhance affordable housing in the City. EDA is able to develop and implement agreements
with developers and provide gap financing, construction financing, and silent Second Deeds of Trust for
first time homebuyer programs. This is coupled with the implementation of housing rehabilitation
programs, grants for mobile home parks, infill housing, senior housing, and new construction that
provide affordable housing opportunities in the City.
II. OTHER ACTIONS
A. Public Policies
The City and EDA will continue dialogue and project coordination with various public/private agencies
involved in implementing the City's housing goals and continue to provide input on regulations, codes,
and ordinances that could potentially have adverse effects on the development of affordable housing.
B. Institutional Structure
The City and EDA will continue to aggressively attract housing development to ensure that all
development will be completed in harmony with the State Housing Element and Consolidated Plan's
goals. During FY 2006-2007, specific actions will be taken to achieve cooperation and coordination
amongst state, local, and private agencies and institutions in implementing activities.
The City and EDA will continue to coordinate the execution of a regional homeless assistance plan with
a countywide Homeless Coalition and Community Action Partners of San Bernardino County. These
groups include: non-profit service providers, City of San Bernardino Police Department, County Board
of Supervisors, County Department of Public Social Services, County Department of Mental Health,
County Department of Public Health, Realtors, the AFL-CIO, Veterans, the Building Industry
Association, Habitat for Humanity, local colleges andjob training groups. The participation of the City
and EDA in this cooperative effort enables and facilitates delivery of homeless services and resources
through effective networking. In addition, any development of homeless services outside the city limits
serves to lessen the City's homeless problems.
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Co Public Housiu2 Improvements
The Housing Authority of the County of San Bernardino ("Authority") owns and manages about 800
units of public housing within the City limits, and nearly 2,000 countywide, for occupancy by very low-
income families who pay no more than 30 percent of their monthly income for rent. The Authority's
public housing program includes a mixture of single-family housing (scattered sites), multifamily
housing, and special needs housing (such as for seniors and individuals with disabilities) funded under
several state and federal housing programs. According to the Authority, there are currently 15,000
applicants on the waiting list for Public Housing Programs. Because the waiting list is currently closed,
the number of households eligible for, and desiring assistance, is undoubtedly much larger than
documented.
D. Public Housin2 Resident Initiatives
Due to the size of San Bernardino County, the Authority divided its service area into seven districts.
Authority Staff coordinated and monitored the election of a jurisdiction-wide Resident Advisory
Council to represent the voice of the resident population in these districts. The Resident Advisory
Council's overall purpose is to improve the quality of life and resident satisfaction within assisted
housing. It also participates in self-help initiatives to enable residents to create a positive living
environment for their families.
E. Lead Based Paint Hazard Reduction
The Lead Based Paint Hazard Reduction Strategy is detailed in the Five-Year Consolidated Plan. It is
summarized as follows; (1) Coordinating public and private efforts to reduce lead-based paint hazards
and protect young children; (2) Integrating lead hazard evaluation and reduction activities into existing
housing programs; (3) Public awareness through educational materials and programs; and (4) Education
and advocacy and (5) lead base eradication to the extent finances are available.
III. ANTI-POVERTY STRATEGY
The City has set forth a comprehensive Anti-Poverty Strategy in the Five-Year Consolidated Plan that it
plans to implement over the five-year period.
IV. COORDINATING SERVICES
The City of San Bernardino will continue to meet with public and other housing providers, private and
governmental health, mental health, and social service agencies to use all available resources to their
maximum levels of effectiveness to provide for San Bernardino's needy. Meetings between these
parties will occur regularly throughout the fiscal year to endorse applications for funding and to discuss
cooperative ventures as they present themselves.
V. PROGRAMlPROJECT MONITORING
The City will undertake annual reviews of all agencies it provides financial assistance to in conformance
with 24 CFR 91.230. Findings will be provided as part of the CAPER Report due to HOD annually.
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The report will describe the current status and success of planned activities as described in the Plan and
other information that describes progress and successes of activities.
The Five- Year Consolidated Plan priorities will be evaluated through comparison of goals, set out for
the fiscal year compared with productivity characteristics and completion data for each program or
activity set for accomplishments ofthose goals. The numbers with the objective presented in the Report
will state each program and priority's overall effectiveness.
VI. PROGRAM REQUIREMENTS
"CPD Consolidated Plan System Listing of Proposed Projects" identifies the City's Priority
Description and One-Year CDBG Funds Investment Plan for non-housing community development
activities for the City of San Bernardino. Proposed non-housing activities include public facility
improvements such as the rehabilitation of public service facilities including but not limited to senior
centers and emergency shelter/homeless facilities, park/playground improvements, installation of
lighting within low- and moderate-income neighborhoods, as well as the funding of a multitude of
public services/agencies. A majority of the public service agencies funded provide counseling, food,
job training, child care and serve the City' seniors, children/adolescents, youth programs, shelters, etc.,
and households in general.
A. S eeific CDBG Grant Pro ram Submission Re uirements
1. CDBG - Other resources that may become available in addition to annual grant include
redevelopment low/mod funds in the amount of $4,734,200.
a. Program income estimated and expected to be generated during the Program Year -
$400,000.
(1) The amount estimated and expected to be generated by and deposited to
revolving loan funds - None
(2) The total amount estimated and expected to be received from each new float-
funded activity that is included in the Plan - None
(3) The amount estimated and expected to be received during the current program
year from float-funded activities described in a prior statement or plan.
CinemaStar - $260,308
b. Program income received in the preceding program year that has not been included in a
statement or plan - None
(I) Proceeds from Section 108 loan guarantees that will be used during the year to
address the priority needs and specific objectives identified in the strategic plan-
$7.5 million.
(2) Surplus funds from any urban renewal settlement for community development
and housing activities - None
22
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City orSan Bernardino - Consolidated Plan - FY 2006-2007
(3) Any grant funds returned to the line of credit for which the planned use has not
been included in a prior statement or plan - None
2. Float-funded Activities - None
3. Section 108 Activities - the City is presently obligated to repay one Section 108 loan, the
CinemaStar for a total of$5,560,000. EDA currently uses the revenue stream (lease payments)
to pay the debt service on the loan. This project continues to provide jobs for the low- and
moderate-income population ofthe City of San Bernardino, as well as provide a reliable revenue
source to the City in the form of sales tax and property taxes, which are reinvested in the
community in the form of services and the provision of public improvements.
On March 5, 2005, the City was notified ofan award of$7.5 million in Section 108 HUD Loan
Program.
a. North Arden-Guthrie - RetaiVEntertaimnent Shopping Center
Acquisition of 24 privately owned residential structures or vacant parcels; relocation of
approximately 80 residential tenants; demolition of approximately 20+ residential structures;
development of over 17 acres containing between 122,000 to 186,000 square feet of retail,
restaurants, entertaimnent and recreational shopping center together with infrastructure such as
parking, and on and off site street improvements. Total project costs are estimated at $10
million (includes land acquisition) and development costs are estimated at $17 million. The
sources of funds for this project are as follows: Developer Equity/Financing contribution of
approximately $22 million and $5 million in resources from the Redevelopment Agency and
Section 108 Loan Guarantee Funds.
4. Urgent Needs - N/A
B. S ecific HOME Submission Re uirements
1. Resale Provisions - The City's resale or recapture provision ensures the affordability of units
acquired with HOME funds in compliance with 24 CFR 92.254(a)( 4). Specifically, homebuyers
agree that for a fifty five (55) year period commencing on the date of recordation ofthe Agency
Deed of Trust and the Affordable Housing Covenant to notify the Agency not less than thirty
(30) days prior to: (i) the sale of the New Home, (ii) the transfer of any interest in the New
Home, or (iii) any refinancing of the lien ofthe First Mortgage Lender to which the lien ofthe
Agency Deed of Trust is subordinate. This is a shared appreciation formula between EDA and
homebuyer based on a declining scale.
2. HOME Tenant Based Rental Assistance - N/A
3. Other Forms of Investment - Private Resources from Community Housing Development
Organization (CHDO) Partners.
23
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City orSon Bernardino - Consolidated Plan - FY 2006-2007
4. Affirmative Marketing - The City will use combine efforts of CHDOs, realtors, newspaper
advertisement and flyers to affirmatively market homes to all residents and prospective buyers
regardless of race, color, gender, marital status, religion and disability.
S. MinoritylWomen's Business Outreach - The City's outreach effort is fully described in the
M/WBE Plan which includes actions that will be taken to establish and oversee the inclusion, to
the maximum extent possible, of minority and women, and entities owned by minorities and
women, including without limitation, real estate firms, construction firms, appraisal firms,
management firms, financial institutions, investment banking firms, underwriters, accountants,
and providers of legal services, in all contracts, entered into by the City with such persons or
entities, public and private, in order to facilitate the activities to provide affordable housing
under the HOME Program in compliance with 24 CFR 92.35l.(b).
6. Program Income - Approximately $350,000
7. Refinancing - N/A
In fiscal year 2006-2007, the City will receive $1,563,059 in HOME funds of which $22,321 is
American Dream Down Payment Initiative (ADDI). HOME funds will be allocated as follows
for the new fiscal year: 10% ($156,305) for EDA HOME administration; 15% ($234,459) to
qualified Community Housing Development Organizations (CHDO' s) who aid in the provision
of affordable housing in the community; 5% ($78,153) for CHDO operations and capacity
building. The ADDI Program was signed into law by the President in December 2003.
Together with HOME funds, these limited funds will assist low-income families to become
first-time homebuyers.
The remaining $1,094,142 will be used for the provision or preservation of affordable housing
which benefits low-income persons (80% and below median income). The type ofthe activities
that may be funded include, but are not limited to, rehabilitation or construction of multiple
housing; homebuyer programs; acquisition ofland, public improvements to facilitate affordable
housing and transitional housing. These funds will be used to augment the Economic
Development Agency's annual Housing Fund.
C. Specific ESG Submission Requirements
The City solicited and made funding recommendations based on experience, ability to provide service
and the number of households expected to benefit from the program. Match grant funds were also
identified in each recipient's application from fund raising, in-kind donations and volunteers labor
donated. Staff together with a representative from San Bernardino's County's Community Action
Partners, Incorporated assisted in reviewing and rating the ESG proposals. Each proposal was evaluated
on: project narrative, past experience, cost effectiveness, leveraging and overall quality of proposal.
24
P'\FORMS\HOUSING FORMS\CONSOLlDATED PLAN\2006-2001\2006-2007 CONSOLIDATED ANNUAL ACTION PLAN DOC
2006-127
2006-127
City of San Bernardino
Analysis of Impediments to
Fair Housing Choice
April 2006
Consultants to the City
P & D Consultants
800 E. Colorado Blvd., Suite 270
Pasadena, CA 91101
8279.02
2006-127
Table of Contents
Chapter
Page
..................................... ,-,
1.1
Introduction ..
........1-1
,.
1.2
1.3
1.4
1.5
1.6
Purpose of Report.. .
State and Federal Fair Housing Laws...
1.2.1 Federal Laws.. .............
1.2.2 California Laws. ................. .
1.2.3 Fair Housing Defined.. . ..............
1.2.4 Impediments Defined..
..1-1
..............1-1
. ................................1~
.....1-2
..1-3
Scope of Analysis
.1-3
Organization of Report..
.1-3
Preparers of Report and Data Sources
........1-4
Public Participation
1.6.1 Service Agency Interviews..
1.6.2 Community Meeting...
1.6.3 Public Review of Draft AI..
...1-4
.........1-4
.1-5
......1-5
2.
Community Profile ............
............... 2-'
2.1
Demographic Profile.
2.1.1 Population.
2.1.2 Age Composition.. . .
2.1.3 Race and Ethnicity.. .
...... 2-1
.......2-1
...2-2
........2-3
2.2
Income Profile..
.2-6
2.3
Household Characteristics.
2.3.1 Large Households.
2.3.2 Large Household Profile..
2.3.3 Elderly..
2.3.4 Persons with Disabilities...
2.3.5 Persons with HIV/AIDS.
2.3.6 Homeless Persons.
..2-8
. ......2-8
..........2-9
.........2-9
.............. ..2-10
.......2-11
........2-11
2.4
Housing Profile ......
2.4.1 Housing Growth...
2.4.2 Tenure and Vacancy. ..................
2.4.3 Housing Type.... .............. .
2.4.4 Housing Cost and Affordability.. .
2.4.5 Housing Condition.... ................
.........2-12
................. .....2-12
...................... 2-12
............................. 2-14
.................. .....2-14
.2-17
2.5
Affordable Housing................
2.5.1 Public Housing ...............
.2-17
..2-17
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page TOC.'
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Chapter
2.6
2.7
2006-127
Page
2.5.2
2.5.3
Tenant-Based Rental Housing Assistance.....
Project-Based Rental Housing Assistance
............... ............2-18
............. .......2.18
Licensed Community Care Facilities..
.........2-20
Accessibility of Public Transit..
2.7.1 Public Transit..
2.7.2 Major Employers...
.......2.22
......2-22
.......2-22
3. Fair Housing Profile......................................................._.......................................... 3.1
3.1 Fair Housing Practices.. ...................................... ......3-1
3.1.1 Fair Housing Practices in the Homeownership Market............. .........3-1
3.1.2 Agency Coordination in the Homeownership MarkeL............ ....3-3
3.1.3 Fair Housing Practices in the Rental Market...... .....3.4
3.1A Agency Coordination in the Rental Market ............... ....3.5
3.2
Fair Housing Services. ............
3.2.1 F air Housing Service Providers.
3.2.2 Discrimination Complaints....
3.2.3 Hate Crimes..
3.2A Fair Housing Services and Programs....
....3.6
.3-6
.............. ...3-7
............ ......3-10
. .........3-12
4. Lending Profile ..........................................................._...........................................4.1
4.1
Legislative Protection..
4.1.1 Community Reinvestment Act...
4.1.2 Home Mortgage Disclosure Act..
......4-1
......4-1
...A-l
4.2
Conventional Loans... . ............
4.2.1 Income of Applicants..
4.2.2 Race Differences by Income of Applicant..
4-2
..4-3
......4-3
4.3
Conventional Home Improvement Loans...
4.3.1 Race of Applicants..
4.3.2 Income of Applicants.. .
........4.5
..4-5
4-6
4A
Conventional Financing by Lender... .
4.4.1 Home Purchase Loans and Home Improvement Loans
4.6
..4-6
4.5 City/County-Sponsored Home Assistance and Rehabilitation Programs ...............4-9
4.5.1 Homeownership Programs...... .....4-9
4.5.2 Home Improvement Programs......... . ..4-10
4.6
Government-Backed Home Loan Applications ..
4.6.1 Home Purchase Loans.. ..................... ............
.4.11
.......A.ll
4.7
Lending in Low/Moderate Income and Minority Neighborhoods....
......4-12
4.8
Subprime Lending Market....... .
.......4.13
Page lOC.2
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
2006-127
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Chapter Page
4.9
Predatory Lending...................
...4-14
4.10 Home insurance Loan Outcomes..
..4-15
5. Public Policies and Programs.................................................................................................... 5-1
5.1
5.2
6.
Appendix A:
Appendix B:
General Plan and Development Policies..
5.1.1 General Plan Land Use Element. ............
5.1.2 General Plan Housing Element...
5.1.3 Moratoriums/Growth Management...
. .....5-1
... .....5-1
.....5-1
.. 5-2
Zoning and Building Codes .....
5.2.1 Development Code........
5.2.2 Infill Housing Development ......
5.2.3 Building Codes....
.......5-2
.....5-2
...5-5
............5-6
5.3
Community Representation.
5.3.1 Planning Commission
.5-6
5-6
Impediments and Recommendations .....
..........................6-1
6.1
Potential I mpediments and Recommendations..
6.1.1 Expanding Affordable Housing Opportunities
6.1.2 Rehabilitation Assistance.. ...................... .............
6.1.3 Public Policies and Programs Affecting Housing Development
6.1.4 Access to Financing. .................
6.1.5 Fair Housing Services and Outreach
..........6-1
......6-1
......6-2
.....6-2
..6-3
.....6-3
Service Provider Interviews
Signature Page
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page TOC.3
Table
2-1
2-2
2-3
2-4
2-5
2-6
2-7
2-8
2-9
2-10
2-11
2-12
2-13
2-14
2-15
2-16
2-17
3-1
3-2
3-3
3-4
4-1
4-2
4-3
4-4
4-5
4-6
4-7
4-8
Age Composition............... ................ ............. ..............
Race and Ethnicity by Person and Householder 2000 ........... .
HUD Income Definitions ..... ..................... ............... ............
Household Income by Race/Ethnicity: 2000...
Household type and Size: 2000
Large Household Profile
Elderly Profile..... ............... ..............
Housing Growth
Housing Tenure. ............ .
Overcrowding by Tenure...... ............
Housing Type: 2005.. ................... ..............
Median Home Prices ....... .............
Housing Affordability Matrix: San Bernardino County -2004
Housing Cost Burden by Tenure... ................
Age of Housing Stock: 2000........
Rent-Restricted Multi-family Housing..
Licensed Community Care Facilities. . ........... ............
Race and Ethnicity of Beneficiaries.. ............ ..............
Discrimination Complaints filed in San Bernardino From FY 2002/03 to 2003/04.
Discrimination Complaints Received by DFEH.
Hate Crimes per 100,000 Population, 2001-2003.
Disposition of Conventional Home Purchase in City of San Bernardino
Loan Applications by Race of Applicant.. . ................
Disposition of Conventional Home Purchase Loan Applications
by Income of Applicant... . .............
Approval Rate of Conventional Home Purchase Loan Applications
by Applicant Race and Income....
Disposition of Conventional Home Improvement Loan Applications
by Race of Applicant.. .
Disposition of Conventional Home Improvement Loan Applications
by Income of Applicant.. .
Disposition of Conventional Loan Applications by Lending Institutions..
Lending Institutions Community Reinvestment Act Ratings.. ..............
Comparison of Conventional and Government-Backed
Home Purchase Loan Applications. ........4-11
Disposition of Government-Backed Home Loan Applications by Race of Applicant... ....4-12
Disposition of Government-Backed Home Purchase Loan Applications
by Income of Applicant..... ............. ............ . .............
Lending to Low/Moderate Income and Minority Neighborhoods.... .............
Approval Rate for Conventionally Financed Home Mortgage Insurance
in San Bernardino, 2003.... . ............
Residential Zone Districts.
Parking Requirements by Housing Type.
2006-127
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List of Tables
4-9
4-10
4-11
4-12
5-1
5-2
Page
.........2-2
..............2-4
..........2-6
............2-6
...........2-8
..2-9
........2-10
..2-12
.2-13
.......2-14
..2-14
...2-15
.2-16
..........2-16
.....2-17
......2-19
......2-20
.......3-7
.............3-8
.......3-9
...........3-11
...4-2
..........4-3
......4-4
. ......4-5
4-6
. ...4-7
.4-8
....4-12
.4-13
. ....4-16
....5-3
......5-5
Page TOC-4
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Figure
2-1
2-2
2-3
2-4
2-5
2-6
3-1
3-2
2006-127
a e of Content
List of Figures
page
Age Distribution of Population: 1990 and 2000...
Race and Ethnicity by Person: 1990 and 2000...
Concentration of Minority Households....
Low and Moderate Income Areas...
Licensed Community Care Facilities Map
Major Employers Map.... . .................
IFHMB Discrimination Complaints by Race.
Hate Crimes Recorded in San Bernardino, 1998 to 2003
.....2-2
.....2-3
. .. 2-5
. .............. ......2-7
.......... 2-21
..2-23
. ..3-8
..3-10
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page TOC-S
2006-127
Cater
Introduction
1.1 Purpose of Report
The City of San Bernardino is committed to promoting equal opportunity in housing for all of the
community s residents. Furthermore. as a recipient of housing and community development grants
from the U.S. Department of Housing and Urban Development HUD. the City is required to submit
a certification affirmatively furthering fair housing by undertaking fair housing planning as follows:
. Completion of an Analysis of Impediments to Fair Housing Choice AI
. Actions to eliminate identified impediments and
Maintenance of fair housing records.
This Analysis of Impediments to Fair Housing Choice AI serves as the City of San Bernardino s
assessment of impediments to fair housing choice. This report is a comprehensive review of both
public- and private-sector conditions and the effect of regulations. administrative policies.
procedures. and practices of the City on location and availability of housing.
1.2 State and Federal Fair ousing Laws
Fair housing is a right protected by both federal and State of California laws.
virtually every housing unit in California is subject to fair housing practices.
ith these laws.
1.2.1 Federal Laws
The Fair Housing Act of 1968 and Fair Housing Amendments Act of 1988 42 U.S. Code 3601-
3619. 3631 are federal fair housing laws that prohibit discrimination in all aspects of housing. such
as the sale. rental. lease. or negotiation for real property. The Fair Housing Act prohibits
discrimination based on race, national origin, and religion. In 1988, the Fair Housing Act was
amended to extend protection to familial status. sex. and people with disabilities mental or
physical. In addition. the Amendment Act provides for reasonable accommodations. requiring a
property owner to allow structural modifications for persons with disabilities. if requested. at their
own expense. and sets housing code standards for new multi-family dwellings to accommodate the
physically disabled.
1.2.2 California Laws
The State Department of Fair Employment and Housing DFEH enforces California laws that
provide protection and monetary relief to victims of unlawful housing practices. The Fair
Employment and Housing Act FEHA prohibits discrimination and harassment in housing practices.
including:
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
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2006-127
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Advertising
. Application and selection process
. Unlawful evictions
. T errns and conditions of tenancy
Privileges of occupancy
. Mortgage loans and insurance
. Public and private land use practices zoning
. Unlawful restrictive covenants
The following categories are protected by FEHA:
.
Race or color
Ancestry or national origin
Sex
Marital status
Source of income
Sexual orientation
Familial status households with children under 18 years of age
Religion
MentallPhysical Disability
Medical condition
Age
.
.
.
.
.
.
.
.
In addition, the FEHA requires housing providers to make reasonable accommodation in rules,
policies, practices, and services to permit persons with disabilities to use and enjoy a dwelling. The
law also allows persons with disabilities, at their own expense, to make reasonable modifications of
the premises.
The Unruh Civil Rights Act provides protection from discrimination by all business establishments in
California, including housing and accommodations, because of age, ancestry, color, disability,
national origin, race, religion, sex, or sexual orientation. hi Ie the Unruh Civil Rights Act specifically
lists sex, race, color, religion, ancestry, national origin, disability, or medical condition as
protected classes, the California Supreme Court has held that protections under the Unruh Act are
not necessarily restricted to these characteristics.
Furthermore, the Ralph Civil Rights Act forbids acts of violence or threats of violence because of a
person 5 race, color, religion, ancestry, national origin, age, disability, sex, sexual orientation,
political affiliation, or position in a labor dispute California Civil Code section 51.7. Hate violence
can be verbal or written threats, physical assault or attempted assault and graffiti, vandalism, or
property damage.
1.2. Fair DUSing efined
In light of the various pieces of fair housing legislation passed at the federal and State levels, fair
housing throughout this report is defined as follows:
Fair housing is defined as a condition in which individuals of similar income levels in the
same housing market have a like range of choice available to them regardless of race,
color, ancestry, national origin, religion, sex, disability. arbitrary age, marital status, familial
status, sexual orientation. source of income, or any other category which may be defined by
law now or in the future.
Page 1-2
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
2006-127
C a te r
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1.2. Impediments efined
ithin the legal framework of federai and State laws and based on the guidance provided by the
HUD Fair Housing Planning Guide, impediments to fair housing choice can be defined as:
Any actions, omissions, or decisions taken because of race, color, ancestry, national origin.
religion. sex. disability. arbitrary age, marital status, familial status, sexual orientation. source
of income which restrict housing choices or the availability of housing choices; or
Any actions, omissions, or decisions which have the effect of restricting housing choices or
the availability of housing choices on the basis of race, color, ancestry, national origin.
religion, sex, disability. arbitrary age, marital status, familial status, sexual orientation, source
of income.
To affirmatively promote equal housing opportunity, a community must work to remove
impediments to fair housing choice. Based on the conclusions of this AI, the City of San Bernardino
will take lawful steps to eliminate or reduce the identified impediments to fair housing choice.
1. Scope of Analysis
This AI provides an overview of laws, regulations, conditions or other possible obstacles that may
affect an individual or a household s access to housing in the City of San Bernardino. The AI
involves:
. A comprehensive review of San Bernardino 5 laws, regulations, and administrative policies,
procedures, and practices
. An assessment of how those laws, regulations, and administrative policies, procedures,
and practices affect the location, availability, and accessibility of housing and
. An assessment of conditions, both public and private, affecting fair housing choice.
The scope of analysis and the format used for this AI adhere to recommendations contained in the
Fair Housing Planning Guide developed by the U.S. Department of Housing and Urban
Development HUD.
1. rgani ation of Report
The AI is divided into chapters as described below:
1. Introduction defines fair housing and explains the purpose of the report.
z. Community Profile presents the demographic, housing, and income characteristics in
Corona. Major employers and transportation access to job centers are identified. The
relationships among these variables are discussed.
3. Fair Housing Profile evaluates existing public and private programs, services, practices, and
activities that assist in providing fair housing in San Bernardino and analyzes fair housing
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
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Cater
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complaints and violations in San Bernardino. Trends and patterns of impediments to fair
housing, as identified by public and private agencies, are identified.
4. Lending Profile assesses the access to financing for different groups and examines the fair
housing practices of lenders, realtors, and other housing associations.
5. Public Policies analyzes public policies and actions that may impede fair housing choice in
San Bernardino, including:
.
Public policies and actions affecting the construction of publicly assisted housing and
Administrative policies concerning community development and housing activities.
6. Conclusions and Recommendations provides conclusions and recommendations to further
fair housing in San Bernardino.
1.5 Preparers of Report and
ata Sources
This report, prepared through a collaborative effort between City staff and P D Consultants, Inc.
under contract to the City of San Bernardino, is funded by Community Development Block Grant
CDBG general planning and administration funds.
The following data sources were used to complete this AI. Sources of specific information are
identified in the text, tables, and figures.
.
, 990 and 2000 Census
2005-2010 San Bernardino Consolidated Plan
City of San Bernardino General Plan
City of San Bernardino Housing Element
City of San Bernardino Development Code
California Department of Finance DOF Population Housing Estimates, 2005
San Bernardino County Housing Authority, Section 8 and Public Housing data
Home Mortgage Disclosure Act HMDA data regarding lending patterns in 2003
Data uick housing sales activity data
California Association of Realtors housing market data
HUD Multi-Family Housing Inventory, 2005
State of California Department of Social Services Community Care Licensing Division, 2005
.
.
.
.
.
.
.
.
1.6
Public Participation
Public and private agencies either directly or indirectly involved with fair housing issues in San
Bernardino were contacted during the course of research for the AI. including non-profit fair
housing services providers, local housing and social services providers, financial institutions,
residential developers, and County government agencies.
1.6.1 Service Agency Interviews
In preparing this AI. informal telephone interviews were conducted to obtain input on housing
issues in the community. The following agencies were interviewed:
P age 1 - 4
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.
Home of Neighborly Service
Inland Regional Center
Mary s Mercy Center
Veronica s Home of Mercy
Asian American Resource Center
Perris Hill Senior Center
.
.
.
The interviews with the above listed service agencies provided insight into the following issues:
.
Affordable housing opportunities in the City are limited. Affordable housing that can
accommodate persons with disabilities is even harder to find.
.
Clients face various housing issues, such as poor housing conditions or maintenance issues
and evictions.
There is a perception that discrimination complaints based on familial status and disability
are increasing.
Summary notes for each interview are included in Appendix A. Appropriate input from these
agencies has been incorporated in the AI.
1.6.2 Community eeting
On February 23. 2005. the Economic Development Agency conducted a Consolidated Plan
community meeting for residents as well as public and social service providers. A variety of service
agencies serving the general public and populations with special needs were invited to the
workshop. No residents attended the public meeting. However. the following organizations
participated in the community meeting:
. ASA Learning Center Inland Fair Housing/Mediation Board
. AI-Shifa Clinic . Legal Aid Society
. Asian American Resource Center . Liberia Del Pueblo
Assistance League of San Bemardino Mary s Mercy Center
. Boys and Girls Club . Miracle Homework Center
. Central City Lutheran Mission . Option House
. Foothill AIDS Project San Bemardino Child Advocacy Program
Frazee Community Center San Bernardino Sexual Assault
. Highland Senior . St Bernadine Medical Foundation
. Home of Neighborly Service . Victory Resource Center
. y CA - The Y Academy
The City of San Bemardino s Community Development Citizens Advisory Committee CDCAC
chaired the community meeting. The agencies listed above were provided the opportunity to
present their agency and to elaborate on the nature and extent of needs addressed by their agency.
Agencies commented on the need for affordable housing and housing options for persons with
disabilities and other special needs as primary housing-related issues.
1.6. Public Review of raft AI
The Draft AI was available for public review for a 3D-day period and was placed at the San
Bemardino City Hall public counter and the following public libraries: Norman F. Feidheym Central
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
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Library, Dorothy Inghram Branch Library, Howard M. Rowe Branch Library, and Paul Villasenor
Branch Library.
P age 1-6
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
2006-127
Cater
Community Profile
A key goal for fair housing Is to foster an inclusive environment. one where people from all walks of
life have the opportunity to live in a decent and suitable home. Fair housing is thus concerned with
ensuring that: 1 a range in types and prices of housing is available and 2 all people are treated
equally in the rentai, sale, or occupancy of housing.
This chapter discusses the population and housing characteristics of San Bernardino that may
affect the ability of households with similar incornes, in the same housing market, to have a like
range of housing choices. The City s demographic profile, income distribution, housing stock
characteristics, and access to public transportation are analyzed. By assessing this information, the
development of housing patterns within the City, in relation to race, ethnicity, income and other
characteristics, can be determined.
Due to the comprehensive scope and complexity of data presented in this chapter, various data
sources have been utilized. For each section the most appropriate and current data is used. For
example, data from Census 2000, the HUD-developed Comprehensive Housing Affordability
Strategy CHAS, and the Population and Housing Estimates from the California Department of
Finance may be used in the same section. The use of different sources may result in data that
differ slightly however, the differentials are insignificant.
2.1 emographic Profile
2.1.1 Population
As the County seat of San Bernardino County, the City of San Bernardino encompasses
approximately 60 square miles along the foothills of the San Bernardino Mountains. One of
California 5 oldest communities, San Bernardino evolved from a semi-rural farming community to an
enterprise city with large railroad companies and an economy based primarily upon retail
commercial businesses, manufacturing, and distribution centers.
In the last 30 years, the City population grew from 100,000 people to almost 200,000 as of 2005.
According to the Census, the population grew by approximately 13 percent between 1990 and
2000, lower than the countywide increase of 21 percent during the same period Table 2-1. In
2000, San Bernardino remained the largest city in the County with a population of 185,401, just
ahead of the cities of Fontana, Ontario, and Rancho Cucamonga. Between 2000 and 2005, the San
Bernardino City population grew another 8 percent, slightly more than half the countywide growth
of 14 percent.
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
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Total Population Percent Change
urisdiction 1990 2000 2005 1990-2000 2000-2005
City of San Bernardino 164,164 185,401 199,803 12.9 7.8
City of Fontana 87,535 128,929 160,015 47.3 24.1
City of Ontario 133,179 158,007 170,373 18.6 7.8
City of Rancho Cucamonga 101 ,409 127.743 161,830 26.0 26.7
San Bernardino County 1,418,380 1.709,434 1,946,202 21.0 13.9
Table 2-1
Population rowth: 1
- 2 5
Source: 2000 Census.
2,1,2 Age Composition
Housing demand is affected by the age characteristics of a community, as different age groups
have very different housing needs. Typically, young adult households may occupy apartments,
condominiums, and smaller single-family homes because of household size and/or affordability.
Middle-age adults may prefer larger homes as they begin to raise families, while seniors may prefer
condominiums, mobile homes, or smaller single-family homes that are lower cost and have less
extensive maintenance needs.
Figure 2-1 illustrates the age distribution of San Bernardino residents in 1990 and 2000, There has
been a slight decrease in median age from 28.2 in 1990 to 27.6 in 2000, and the City continues to
have a younger population compared to the County as a whole, which had a median age of 30.3 in
2000. However, similar to the County, San Bernardino has a sizable elderly population. In 2000,
elderly residents comprised approximately 8.6 percent of both the City and the County residents.
Figure 2-1
Age istribution of Population: 1 and 2
18%
17%
--l
I
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r~~~~~-
15%
11%
'J:
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04 5-B 10-14 15-19 20-24 25-29 30-39 4049 50-64 65 +
Sources: 1990 and 2000 Census.
Page 2-2
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In 2000. 38 percent of the residents in San Bernardino were 19 years of age or younger. This age
structure typically signifies a family-oriented community. The most significant population change
was for residents age 25-29 and 40-49. In 1990. the group at age 25-29 represented 10 percent of
the population in the City. In 2000. this group dropped by three percentage points. The proportion
of the group age 40-49. however. increased three percentage points between 1990 and 2000.
2.1. Race and thnicity
Race and ethnicity have implications on housing choice in that certain demographic and economic
variables correlate with race. Therefore. race and ethnicity have implications on the development of
the City.
New estimates from the U.S. Department of Housing and Urban Development HUD. based on
Urban Institute research. indicate that while discrimination persists against Blacks and Hispanics
searching for homes in major metropolitan areas. its incidence has generally declined since 1989'
According to the study. when Blacks and Hispanics visit real estate or rental offices to inquire about
the availability of advertised homes and apartments. they face a significant risk of receiving less
information and less favorable treatment than comparable hite customers. Despite signs of
progress, significant discrimination remains. This discrimination raises the cost of housing
searches for Blacks and Hispanics. creates barriers to homeownership and housing choice. and
helps perpetuate involuntary racial and ethnic segregation.
Between 1990 and 2000. San Bernardino became increasingly diverse in its race and ethnic makeup
Figure 2-2. In San Bernardino. the hite population constituted 46 percent of the City population
in 1990 but dropped to 29 percent in 2000. In contrast. the proportion of Hispanics increased from
35 percent in 1990 to 47 percent in 2000. This trend follows County. state. and national trends.
Between 1990 and 2000. the Hispanic population in the United States experienced a 58-percent
growth compared to a 40-percent growth of the remaining population.' In 2000. the Black
population was the third largest racial/ethnic group in the City at a distant 16 percent. Asian and
other racial/ethnic groups constituted only small proportions of the population 4.4 percent and 3
percent. respectively.
Figure 2-2
Race and thnicity by Person: 1
and 2
46%
-J
01990 -
02000 .---:
50%
45%
c 40%
0
~ 35''Vo
'3
~ 30%
0
0.. 25%
a
c 20%
m
0 15%
~
0..
10%
5%
0%
4% 4% 3%
---LlIJ n ~/
White
Hispanic
Black
Asian
Other
Sources: 1990 and 2000 Census.
iscrimination in elro olitan Housing arkels National Results from Phase I of HDS200Q, Margery Austin Turner,
Stephen L Ross. George Galster, ohn Yinger, Urban Institute 2002.
1990 and 2000 Census.
CITY OF SAN BERNARDINO
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Comparing the racial/ethnic composition of the population with that of the householders indicates
that 39 percent of households in San Bernardino were headed by hites and only 37 percent by
Hispanics in 2000 see Table 2-2. The larger proportion of Hispanic population 47 percent
compared with the smaller proportion of Hispanic households directly reflects the iarger average
household size of Hispanic households.
Table 2-2
Race and thnicity by Person and ouseholder 2
Persons Households
San San
San Bernardino San Bernardino
Bernardino Countv Bernardino County
hite 2B.9 44.0 39.1 54.6
Hispanic 47.5 39.2 369 29.3
Black 16.0 B.B 17.0 B.B
Asian/PI 4.4 4.B 3.9 4.4
Other 3.2 3.2 3.1 29
Total 100.0 100.0 100.0 100.0
Source: 2000 Census.
Racial thnic Concentrations
Areas with concentrated minority residents may have different needs. Figure 2-3 shows the
concentration of minority households. Concentration is defined as Census block groups with above
the County average of minority households 56 percent. Minority populations are located mostly in
the southern area of the City, with small pockets along Interstate 215.
Page 2.4
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
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2.2 Income Profile
Household income is the most important factor determining a household s ability to balance
housing costs with other basic life necessities. A stable income is the means by which most
individuals and families finance current consumption and make provision for the future through
saving and investment. The level of cash income can be used as an indicator of the standard of
living for most of the population. hile economic factors that affect a household s housing choice
are not a fair housing issue per se, the relationships among household income, household type,
race/ethnicity, and other factors often create misconceptions and biases that raise fair housing
concerns. To the extent that affordability issues disproportionately impact a particular group that is
protected by fair housing laws, fair housing concerns may also arise.
According to the 2000 Census, San Bernardino households had a median income of 31,140, or just
74 percent of the countywide median income of 42,086.
Table 2-
Income efinitions
Income Grouo of Area Mfl
Extremely Low Income 0-30
Low Income 31-50
Moderate Income 51-80
Middle/Upper 81
Note: Federal housing and community development resources
are typically not available for households with above 80 of
the Area MFI.
for purposes of housing and community
development resource programming, HUD
has established income definitions based on
the Median family Income Mfl for a given
Metropolitan Statistical Area MSA. These
income definitions are presented in Table 2-3.
Based on these definitions, almost 35.1
percent of the City s totai households in 2000
were within Extremely Low Income 30
percent MFI and Low Income 50 percent
MFI levels, and 19.5 percent were within
Moderate Income 80 percent MFI level. Figure 2-4 illustrates those biock groups with 51
or more of the population earning incomes less than 80 percent of the Area MFI.
percent
In San Bernardino, households with iower and moderate income comprised 54.7 percent of the
totai households. As shown in Table 2-4, the proportion of households with lower and moderate
income was highest among Black 63.9 percent and Hispanic 62.6 percent, compared to hite
43.3 percent households.
Table 2-
ousehold Income by Race thnicity: 2
of of of
Extremely Low Moderate Middle/Upper
Total ofT otal Low Income Incomes Income Incomes
Households Households Households 0-30 MFI 31-50 Mfl 51-80 MFI 80 MFI
hite 22,085 39.1 14.1 10.9 18.3 56.7
Hispanic 20,523 36.9 21.8 17.5 23.3 37.4
Asian/PI 2,158 3.9 25.3 15.1 13.9 45.8
Black 9,459 17.0 31.7 16.1 16.1 36.1
Other 1,875 3.1 17.5 8.8 21.1 52.6
All Households 56,100 100. 20.8 14.4 19.5 45.2
Source: 2004 HUD CHAS Data, based on 2000 Census.
Page 2-6
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
2006-127
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2. ousehold Characteristics
Household characteristics are important when analyzing housing needs. Households with different
characteristics have unique housing needs and may face different impediments in the housing
market. For instance, families with children may face housing discrimination by landlords who fear
that children will cause property damage, or the landlords have cultural biases against children of
opposite sex sharing a bedroom. Discrimination can manifest itself in many forms, including higher
security deposits and outright refusal to rent to families with children. This section details the
various household characteristics affecting fair housing choice.
The number of households in San Bernardino increased three percent between 1990 and 2000,
from 54,482 to 56,330 households. As shown in Table 2-5, a majority of households in San
Bernardino were families 73 percent. About 21 percent of all households were female-headed
households with children, much higher than the County average 15 percent. The average
household size in San Bernardino increased from 2.90 people in 1990 to 3.19 people in 2000.
San Bernardino also has a considerable elderly population. Among all family households,
approximately nine percent were headed by an elderly person, while eight percent of all non-family
households i.e. living alone or with unrelated roommates were headed by an elderly person.
Table 2-5
ousehold Type and 5i e: 2
Female-
Average Families Elderly Elderly headed
household with Family Non-Family households
size Families children Households Households wi children
San Bernardino 3.19 73.0 26.2 9.0 8.1 21.1
San Bernardino County 3.15 76.5 31.0 9.5 7.1 14.8
Source: 2000 Census
2. .1 Large ouseholds
Large households often face discrimination in the housing market, particularly in the rental market.
Property owners and managers may be concerned with the potential increase in wear and tear and
liability issues related to large households, especially those with children. In addition, large
households also have a higher cost of living and need larger homes. hile the cost of housing
itself is not a fair housing issue, the competition for lower-priced housing and the scarcity of larger,
low~rent units may create an environment where fair housing violations may occur.
Many ethnic minority groups have a younger age profile and tend to have larger families than the
hite population. Having more children translates into a higher cost of living and the need for
larger homes.
The 2000 Census reported 12,582 households with five or more members in San Bernardino,
representing approximately 22 percent of the total households. The comparable figure for the
County in 2000 was 20 percent. In the City, large owner-households were slightly more prevalent
12 percent than large renter-occupied households 10 percent.
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The special Census tabulations for HUD Table 2-6 further indicate that among the large
households in the City, approximately 74 percent experienced some form of housing problems,
which include overcrowding, cost burden, or substandard housing conditions. This illustrates that
San Bernardino has a need for affordable housing units with three or more bedrooms. Furthermore,
interviews with service providers Appendix A indicated that families with children sometimes face
discrimination is the rental market.
Table 2-6
Large ousehold Profile
Percent of Low/Moderate
SDecial Need GroUD Population' Incomel Housina Problems2
Large Households 22.4 60.9 74.4
All Households 100.0 54.8 49.9
Sources: 2000 Census and HUD CHAS, 2004.
2, ,2 Single-Parent ouseholds
Single-parent households are likely to have special needs for housing near day care and recreation
facilities and to have access to public transportation. Female-headed households with children in
particular tend to have lower incomes, thus limiting housing availability for this group. Also, women
in general are disproportionately responsible for household-supporting activities, such as trips to
the grocery store or accompanying young children to and from schools. omen using public
transit are often forced to look for employment near home that will allow them time to complete
these household-sustaining trips"
In 2000, households headed by women comprised approximately 24 percent 9,544 households of
all households in San Bernardino. Of these households, 2,033 female-headed households
21 percent included children.
Female-headed households also comprise a disproportionate number of families that are living in
poverty. In the City, approximately 52 percent of the families living below the poverty level were
female-headed families. Specifically, 91 percent of these female-headed families living in poverty
included children. Countywide, 45 percent of the families living in poverty were female-headed
families, and 91 percent of these female-headed families had children.
2., Iderly
Elderly households householders 65 years or older are vulnerable to housing problem and
discrimination due to limited income, prevalence of physical or mental disabilities, limited mobility,
and high health care costs.
In a tight housing market, the elderly, particularly those with disabilities, often face increased
difficulty in finding housing accommodations. Their low income status limits their ability to balance
the need for housing and other necessities such as health care. Subsidized housing and Federal
housing assistance programs such as Section 8 are increasingly challenging to secure and often
involve a long waiting list.
Blumenberg. Evelyn, Reverse Commute Transit Programs and single Mothers on elfare: A Policy Mismatch
Institute of Transportation Studies, Volume 1, Number 2: December 2002.
CITY OF SAN BERNARDINO
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According to the Census, approximately 15,266 elderly persons resided in San Bernardino in 2000
and represented 8.2 percent of the total population. Approximately 7,282 persons were considered
elderly with a disability. A larger proportion of senior households had low and moderate incomes
59 percent compared to all households 55 percent. hile 35 percent of the elderly households
experienced one or more housing problems such as overpayment or inadequate housing,
compared to the citywide average of 50 percent, elderly residents are often less able to make
improvements to their housing due to their limited incomes and disabilities.
Table 2-
Iderly Profile
Special Need Percent of itha Low/Moderate Housing
Grouo PODulation' Disabilitv' Income2 Problems2
Elderly 8.2 47.7 58.9 35.1
All Households 100.0 22.4 54.8 49.9
Sources: 2000 Census and HUD CHAS, 2004.
San Bernardino has a number of affordable senior apartment developments that are income
restricted:
Arrowhead oods, 1650 est 16'h Street, 51 units
. Arrowhead Vista, 24317 East 4th Street, 40 units
. Casa Bernardino Retirement Center, 1589 North aterman Avenue, 241 units
. Casa Ramona Senior Complex, 1519 est 8'" Street, 44 units
. Foothill Villas, 2613 est 2nd Street, 239 units
. effery Court Senior Apartments, 3677 Central Avenue, 184 units
. Laurel Place, 363 East Gilbert Street, 70 units
. Light s Rancho Linda, 1642 est 27'" Street, 50 units
Mayfield Park Apts, 347 est 44th Street, 84 units
. Pioneer Park Plaza, 540 North F Street, 161 units
. San Bemandino Senior Housing, 1530 est Baseline Street, 74 units
. St. Bernardine Plaza, 584 est 5Th Street, 150 units
. TELACU I Sierra Vista Senior Apartments, 650 est 6'" Street, 75 units
. TELACU II Monte Vista Senior Apartments, 451 North H Street, 75 units
. TELACU III Buena Vista Senior Apartments, 365 East Commercial Road, 75 units
. The Plaza, 555 North G Street, 160 units
. The Villas, 2985 North G Street, 97 units
As identified later in Table 2-16, 21 state-licensed elderly residential facilities with a capacity of 597
beds are located in the City, with the ability to accommodate 35 persons with dementia. In
addition, five adult day care facilities with a capacity of serving 250 residents, including the elderly.
2, ,5 Persons with isabilities
Fair housing choice for persons with disabilities can be compromised based on the nature of their
disability. Persons with physical disabilities may face discrimination in the housing market because
of the use of wheelchairs, need for home modifications to improve accessibility, or other forms of
assistance. Landlords/owners sometimes fear that a unit may sustain wheelchair damage or may
refuse to exempt disabled tenants with service/guide animals from a no-pet policy. A major barrier
to housing for people with mental disabilities is opposition based on the stigma of mental disability.
Landlords often refuse to rent to tenants with a history of mental illness. Neighbors often object
when a house becomes a group home for persons with mental disabilities. hile housing
Page 2-10
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discrimination is not covered by the Americans with Disabilities Act ADA, the Fair Housing Act
prohibits housing discrimination against persons with disabilities, including persons with HIV/AIDS.
An estimated 36,635 San Bernardino residents over five years of age had one or more disabilities,
comprising about 22.4 percent of the City population over five years of age.' This compares to 19.8
percent for San Bernardino County. According to the 2000 Census, of the 27,014 working age 16-
64 years residents with disabilities, 45 percent were employed. Specifically, according to the 2000
Census, 14,465 persons, or 7.8 percent of the population or 40 percent of those with disabilities in
San Bernardino indicated they had a physical disability. Similarly, 7 percent of the population had a
physical disability, representing 39 percent of those with a disability, countywide. As part of this AI
study, the Inland Regional Center was interviewed Appendix A. Representative of the Center
indicated that there is a shortage of affordable housing options for persons with disabilities.
The Americans with Disabilities Act ADA of 1990 and amendments to the Fair Housing Act, as well
as state law, require ground-floor units of new multi-family construction with more than four units to
be accessible to persons with disabilities. However, units built prior to 1989 are rarely accessible to
persons with disabilities. Furthermore, not all new construction may have the range of
modifications needed by specific individuals. Older units, particularly older multi-family structures,
are very expensive to retrofit for disabled occupants because space is rarely available for elevator
shafts, ramps, widened doorways, etc. In addition to changes to the units, the site itself may need
modification to widen walkways and gates, and to install ramps.
2. .6 Persons with
AI S
Persons with HIV/AIDS face an array of barriers to obtaining and maintaining affordable, stable
housing. For persons living with HIV/AIDS, access to safe, affordable housing is as important to
their general health and well-being as access to quality health care. Stigmatism associated with
their illness and possible sexual orientation can add to the difficulty of obtaining and maintaining
housing. Persons with HIV/AIDS also require a broad range of services, including counseling,
medical care, in-home care, transportation and food provision.
According to the County of San Bernardino Department of Public Health, 2,351 San Bernardino
County residents with AIDS were reported to the Center for Disease Control during the period of
1983 to 2000.5 Specifically, the City of San Bernardino accounted for 24 percent 562 of the cases,
ranking the City third among all County jurisdictions in terms of prevalence of cases on a per
100,000 basis 303 cases per 100,000. At 518 cases per 100,000. Moreno Valley had the highest
rate of AIDS cases, followed by oshua Tree at 428 cases per 100,000 and San Bernardino at 303
cases.
2. . t-I: omeless Persons
Formerly homeless persons have a very difficult time finding housing and moving from transitional
housing or other assistance program to permanent housing. Housing affordability for those were
formerly homeless is challenging from an economics standpoint, but this demographic group may
also encounter fair housing issues when landlords refuse to rent to formerly homeless persons.
The perception may be that they are more economically and sometimes mentally unstable.
Because of the transient nature of the homeless population and the regional nature of the homeless
issues, countywide statistics provide a more reliable view of the homeless problem. Like many
areas of California, San Bernardino County has a growing homeless population, due largely to the
The Census estimates of disabilities include temporary disabilities that lasted for more than six months.
San Bernardino AIDS Program Report, anuary 2003.
CITY OF SAN BERNARDINO
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lack of affordable housing. According to the San Bernardino County 2003 Homeless Census and
Survey, between 14,861 and 23,549 unduplicated San Bernardino County residents experience
homelessness in a given year. This range represents between 0.8 percent and 1.3 percent of the
County s total population. This count may include persons living on the streets, in shelters, in a
garage, or sleeping from sofa to sofa of a friend s house. Specific information on the homeless
population in the City of San Bernardino is not available. In general, national estimates place the
homeless population at approximately one percent of the population. Using this figure, an
estimated 1,850 homeless persons may reside in the City of San Bernardino.
2. Dusing Profile
This section addresses characteristics of the housing supply in the City of San Bernardino, including
type, age, condition, costs, and availability. Household characteristics strongly Influence housing
preferences and needs. For instance, single-person households often occupy smaller apartments
or condominiums, such as one-bedroom units. Married couples often prefer larger single-family
homes, particularly if they have children. These patterns underscore the need to provide a diversity
of housing opportunities that allow different types of households the opportunity to live in San
Bernardino.
2. .1
ousing rowth
The 2000 Census reported 63,535 housing units in San Bernardino. representing an increase of
eight percent since 1990 Table 2.13. This level of growth was greater than that experienced by
the cities of Colton and Redland, while Fontana and Loma Linda accounted for the largest growth
among the surrounding cities. The countywide increase was 11 percent during the same period.
Table 2-
Dusing rowth
Housin Units Percent Change
urisdiction 1990 2000 1990-2000
City of San Bernardino 58.804 63,535 8.0
City of Colton 14.767 15,680 6.2
City of Fontana 29,383 35.908 22.2
City of Highland 12.562 14,858 18.3
City of Lorna Linda 6.524 8,084 23.9
City of Redlands 23,189 24.790 6.9
City of Rialto 23,836 26,045 9.3
San Bernardino County 542,332 601,369 10.9
Source: 1990 and 2000 Census.
2. .2 Tenure and acancy
The tenure distribution owner versus renter of a communitys housing stock influences several
aspects of the local housing market. Residential stability is influenced by tenure, with ownership
housing evidencing a much lower turnover rate than rental housing. Housing overpayment cost
burden, while faced by many households regardless of tenure, is far more prevalent among
renters. Tenure preferences are primarily related to household income, composition, and age of the
householder. The City of San Bernardino s tenure distribution is almost evenly divided between
Page 2-12
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
2006-127
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owner- and renter-occupied units, with 52 percent of households being owner-occupied and 48
percent renter-occupied.
Vacancy rates are an indicator of the availability of housing in a community. Vacancies help
moderate the cost of housing, but low vacancies lead to rent escalation and inflating home values.
Generally, an optimal vacancy rate is 1.5 to 2 percent in the for-sale market and 5 to 6 percent in
the rental market. At these rates, vacant units are available to facilitate mobility, and property
owners should be able to increase rents moderately without placing undue burden on tenants.
hen vacancy rates drop below these thresholds, the increased demand and reduced supply allow
rental rates to rise.
The vacancy rates in San Bernardino are slightly above optimal vacancy rates for the for-sale market
and slightly below for the for-rent market. Specifically, the for-sale market showed a vacancy rate
of 3 percent and the rental market a vacancy rate of 4.5 percent.
Table 2-
ousing Tenure
2000
Tenure Vacancy
urisdiction Owner Renter Vacant
San Bernardino 52.4 47.6 11.05
San Bernardino County 64.5 35.5 11.86
Source: 2000 Census and California Dept. of Finance, 2005 Estimates.
vercrowding
Overcrowding is an important indicator of household need. Unit overcrowding is typically caused
by the combined effect of low earnings and high housing costs in a community. The State HCD
and HUD define overcrowded households as households with more than one person per room,
excluding bathrooms, kitchens, hallways, and porches. Severely overcrowded households are
households with more than 1.5 persons per room. Overcrowding accelerates deterioration of
homes and infrastructure, and results in a shortage of on-site parking.
As indicated by the 2000 Census, 21 percent of the households in San Bernardino were
overcrowded. The incidence of overcrowding in San Bernardino was much higher than countywide
average 15 percent. The percentage of severely overcrowded households in San Bernardino was
12 percent in 2000, also higher than the County at 8 percent Table 2-10.
Table 2-1
vercrowding by Tenure
of of of All
Owner Occunied Units Renter Occuoied Units Housin Units
Citv Countv CitV Countv Citv County
Overcrowded 7.2 5.3 12.1 10.3 9.5 7.0
1.01-1.5 persons/room
Severely Overcrowded 8.3 4.9 15.4 12.5 11.7 7.6
1.5 oersonsJroom
Total Overcrowded 15.5 10.2 27.5 22.8 21.2 14.6
1.0 person/room
Source: 2000 Census.
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
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The prevalence of overcrowding varies significantly by income. type. and size of household.
Generally, lower income households and large families are disproportionately affected by
overcrowding. However. cultural differences also contribute to the overcrowding condition since
some cultures tend to have larger household sizes. Overcrowding is typically more prevalent
among renters than among owners. Of the City s renter-households in 2000. approximately 28
percent lived in overcrowded conditions compared to16 percent of the City s owner-households.
2.. Dusing Type
The City s housing stock is comprised primarily of single-family homes. According to the California
Department of Finance estimates. single-family housing accounted for 63 percent of the housing
stock in the City and multi-family housing accounted for 30 percent in 2005 Table 2-11. ith the
exception of Colton and Lorna Linda. other surrounding jurisdictions all had greater proportions of
single-family housing. The County had 74 percent single-family housing compared to only 19
percent multi-family housing. San Bernardino and Rialto had the highest percentage about 7
percent of mobile homes compared to surrounding jurisdictions.
Table 2-11
ousing Type: 2 5
Housina T VDe
Single Multiple Mobile
urisdiction Family Family Home Total Units
San Bernardino 63.0 30.1 69 64.553
Colton 62.7 32.2 5.1 16.057
Fontana 80.6 17.3 2.1 42.144
Highland 77.9 17.0 5.1 16.017
Lorna Linda 50.4 43.1 6.5 8.661
Redlands 680 28.5 3.5 25.984
Rialto 73.3 199 6.8 26.603
San Bernardino County 74.4 19.0 6.6 645.639
Source: California Department of Finance, 2005.
2.. Dusing Cost and Affordability
wnership ousing Costs
According to the Data uick Information Systems, the median price for a home in San Bernardino
rose 37 percent between une 2004 and une 2005 Table 2-12. Home prices in two surrounding
jurisdictions increased at higher rates than in San Bernardino -- Adelanto 45 percent and Barstow
56 percent. Between une 2004 and 2005. the countywide increase was 31 percent.
The median home price in San Bernardino 247.500 was among the lowest in the County. and was
72.500 less than the County median home price of 320.000. Only two jurisdictions Adelanto
and Barstow had lower home prices.
Page 2-14
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Table 2-12
edian orne Prices
Change
Units une
Location Sold Median Home Prices 2004-2005
San Bernardino 388 247,500 37,2
Adelanto 68 218,000 45.3
Barstow 55 132,000 55.6
Big Bear Lake 77 349,000 35.8
Colton 86 300,000 22.7
Fontana 425 370,000 24.0
Grand Terrace 18 355,000 30.3
Highland 86 330,000 32.0
Lorna Linda 22 372.000 15.3
Redlands 91 410,000 23.6
Rialto 168 358,500 27.9
Yucaipa 72 348,000 16.3
San Bernardino County 3,414 320,000 30.6
Source: Data uick Information Systems, 2005.
Rental ousing Costs
As previously stated, San Bernardino is nearly evenly split between renters and owners. Given the
importance of the rental market in the City, it is critical to evaluate the affordability of the rental
housing stock. Furthermore, the number of people priced out of the homeownership market is
steadily increasing. Consequently, there has been a noticeable shift in tenure trends, with an
increasing number of people remaining in the rental market. exacerbating the competition for
scarce affordable housing units.
The following are current December 2005 rental rates based on internet search of rental listings in
the City of San Bernardino:
. Studio: 846 - 1,250
. One-bedroom: 77 5 - 1,450
. Two-bedroom: 915- 1,750
. Three-bedroom: 1,245 - 2,500
ousing Affordability
hile affordability is not a fair housing concern, it does affect housing choice. Fair housing
concerns may also arise when housing affordability issues disproportionately affect groups that are
protected by fair housing laws.
Housing affordability is dependent upon income and housing costs. Using updated income
guidelines, current housing affordability can be estimated for various income groups Table 2-13 .
Given the median home prices presented in Table 2-12, homeownership is beyond the reach of
lower and moderate income households. Similarly, lower and moderate income households cannot
afford market rents in the City of San Bernardino.
Cl1Y OF SAN BERNAROINO
Analysis of Impediments to Fair Housing Choice
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Table 2-1
ousing Affordability atrix: San Bernardino County - 2
Maximum Affordable
Income Levels Housin Costs
Annual I Affordable Taxes
Income Groun Income Payment Utilities Insurance Home Rental
Extremely Low 0-30 MFI
One Person 11,400 265 50 200 6,153 235
Small Family 14,650 366 50 200 20,436 316
Large Family 17,600 440 50 200 33,400 390
Low 31-50 MFI
One Person 19,000 475 50 200 39,553 425
Small Family 24,450 611 100 200 54,715 511
Large Family 29,300 733 150 200 67,240 563
Moderate 51-60
One Person 30,400 760 50 200 69,653 710
Small Family 39,100 976 100 200 119,096 676
Large Family 46,900 1,173 150 200 144,567 1,023
Notes:
1. Small Family 3 persons Large Families 5 or more persons
2. Utility costs for renters assumed at 501 '001 150 per month
3. Monthly affordable rent based on payments of no more than 30 of household income
4, Property taxes and insurance based on averages for the region
5. Calculation of affordable home sales prices based on a down payment of 10 . annual interest rate of 6.5 ,30-
year mortgage, and monthly payment of gross household income
6. Median Family Income in 2004 for San Bernardino County 54,300
ousing Cost Burden
State and Federal standards for housing cost burden are based on an income-to-housing cost ratio
of 30 percent and above, Househoids paying more than 30 percent of their income on housing
have limited remaining income for other necessities. Upper income househoids generally are
capable of paying a iarger proportion of income for housing therefore, estimates of housing cost
burden generally focus on low and moderate income households, Table 2-14 shows the
distribution of overpaying households in the City of San Bernardino, A higher percentage of renter-
households 46 percent were affected by cost burden than all households in the City 38 percent ,
Table 2-14
Housing Cost Burden by Tenure
Citv of San Bernardino San Bernardino Countv
Percent of Percent of
Housinn Problem Number Households Number Households
Cost Burden All Households 21,316 36.0 176,990 33,5
Owner-Occupied 6,544 29,0 100,247 29.4
Renter-Occupied 12.769 46.0 77,169 41,2
Source: HUD CHAS Data 2004
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Analysis of Impediments to Fair Housing Choice
2006-127
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2. .5
ousing Condition
The age of housing is commonly used by state and Federal housing programs as a factor to
estimate rehabilitation needs in communities. Typicaliy, most homes begin to require major repairs
or have significant rehabilitation needs at 30 or 40 years of age. Approximately 46 percent of the
City s housing stock is over 30 years old, indicating the potential need for rehabilitation and
continued maintenance for more than half of the City s housing Table 2-15. Interviews with
service providers Appendix A indicated that some landlords do not upkeep the units and tenants
have difficulty getting repairs done and have to report the conditions to the City s Code
Enforcement or County Health Department.
Table 2-15
Age of ousing Stoc : 2
Number of Units Percent of Total
San Bernardino San Bernardino
Year Built San Bernardino Countv San Bernardino Countv
1939 or earlier 4,605 23.701 7 4
1940-1949 6,637 29,612 10 5
1950-1959 12.750 75,800 20 13
1960- 1969 10,334 82,983 16 14
1970-1979 11.078 120.138 17 20
1980- 1989 11.946 165.036 19 27
1990.2000 6,064 104,099 10 17
Total 63.414 601,369 100 100
Source: 2000 Census
2.5 Affordable ousmg
The availability and location of public and assisted housing may be a fair housing concern. If such
housing is concentrated in one area of a community, a household seeking affordable housing is
limited to choices within that area. In addition, public/assisted housing and Section 8 assistance
should be accessible to lower income households regardless of race/ethnicity, disability or other
special needs populations.
2.5.1 Public ousing
The Housing Authority of the County of San Bernardino HACSB operates the Public Housing
program throughout the County. The Public Housing inventory is comprised of 2,395 units owned
and/or managed by the HACSB.
In the City of San Bernardino, the HACSB maintains 26 scattered sites of conventional public
housing 140 units and two non-scattered conventional housing complexes 550 units, totaling 690
conventional public housing units. The HACSB also owns three affordabie housing developments
one is a senior complex that total 102 units. Among these 792 units, 138 are one-bedroom units,
334 are two-bedroom units, 226 are three-bedroom units, 74 are four-bedroom units, and 20 are
five-bedroom units. The racial/ethnic breakdown of public housing tenants is: 43 percent Black, 39
percent Hispanic, 9 percent Asian, 8 percent hite, and less than 1 percent others.
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page2-17
2006-127
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2.5.2 Tenant-Based Rental Dusing Assistance
HACSB also administers the Section 8 Housing Choice Vouchers Program Section 8. Section 8 is
a rent subsidy program that helps low income families up to 50 percent MFI and seniors pay rents
in private units. Section 8 tenants pay a minimum of 30 percent of their income for rent and the
Housing Authority pays the difference up to the payment standard established by the Housing
Authority. The program offers low income households the opportunity to obtain affordable,
privateiy owned rental housing and to increase their housing choices. The Housing Authority
establishes payment standards based on HUD.established Fair Market Rents. The owner s asking
price must be supported by comparable rents in the area. Any amount in excess of the payment
standard is paid by the program participant.
As of 2004, 8,729 households received Section 8 assistance in San Bernardino County. The City of
San Bernardino has the largest proportion of vouchers 2,680. Of the vouchers administered by the
HACSB, more than half the vouchers are used by Black families, followed by hite and Hispanic
families with more than 20 percent each. Most Section 8 recipients rent two.bedroom units,
followed by three. and one. bedroom units. Almost 1,700 vouchers were in use by elderiy families,
and 65 percent were in use by extremely low income less than or equal to 30 percent MFI families.
Because of the large number of famiiies waiting for rental assistance, the wait list for the Section 8
program has been closed for over two 2 years, and there are no plans to reopen the list in the
Public Housing Agency Plan period 2005.2009. Federal policies and budgetary constraints may
also have a drastic effect on the provision of Section 8 in the next few years. Interviews with
service providers Appendix A indicated that the long wait is an impediment to many lower income
households.
2.5. Pro ect-Based Rental Dusing Assistance
In addition to public housing and Section 8 assistance, 24 publicly assisted housing projects
provide affordable housing to 2,795 households. All of these developments maintain project.based
Section 8 rental assistance or other subsidies to ensure affordability of the units to low income
households up to 50 percent MFI. Table 2.15 provides data on the Citys rent.restricted multi.
family housing stock.
Page 2.18
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
2006-127
C a tef
Table 2-15
Rent-Restricted ulti-family Dusing
Co
nity rofi e
Potential Earliest
Proiect Total Units Assisted Units pronram Expiration
Arrowhead Vista 40 40 Section 202/8 3/25/2005
24317 East 4th Street
Arrowhead oods 51 51 --- ---
1650 est 16th Street
Beautiful light Inn 100 100 Section 202/8 2/24/2004
1365 N. aterman Ave.
Casa Bernardino Retirement etr 241 241 --- ---
1589 North aterman Avenue
Casa Ramona Senior Complex 44 44 --- ---
1519 est 8lh Street
Foothill Villas 239 239 Section 8 5/31/2004
2613 est 2nd Street
Foothill Villas 239 239 Section 8 11/30/2005
2613 est 2nd Street
effery Court Senior Apts. 184 184 ---
3677 Central Avenue
laurel Place 70 70 --- .--
363 East Gilbert Street
Light 5 Rancho Linda SO 50 --- ---
1642 est 27th Street
Little lion Manor 125 125 Section 8 6/30/2021
2000 ubilee Court
Mayfield Park Apartments 84 35 Section 8 9/30/2004
347 est 44u1 Street
Meadowbrook Tower Apts. 305 210 Section 8 6/30/2004
191 est 2nd Street
Pioneer Park Plaza 161 160 Section 8 9/30/2007
540 North F Street
Pioneer Park Plaza 161 161 Section 8 3/31/2006
540 North F Street
San Bernardino Senior Housing 74 74 Section 202 9/15/2007
1530 . Baseline Street
San Bernardino Village Green 240 65 Section 8 3/31/2008
2122 Chestnut Street
St. Bernardine Plaza 150 148 Section 202 3/22/2006
584 est 5th Street
Sterling Village 80 80 Section 8 4/28/2013
7630 Sterling Avenue
TELACU I Sierra Vista Senior Apts. 75 74 Section 8 11/30/2008
650 est 6th Street
TELACU II Monte Vista Senior Apts. 75 74 Section 8 11/30/2008
451 North H Street
TELACU III Buena Vista Senior Apts. 75 74 Section 8 11/30/2008
365 East Commercial Road
The Plaza 160 160 --- ---
555 North G Street
The Villas 97 97 --- ---
2985 North G Street
Total 3,120 2,795
Source: HUD Multi-Family HOUSing Inventory. anuary 2005 and City of San Bernardino, March 2006.
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page2-19
2006-127
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2.6 Licensed Community Care Facilities
Persons with special needs such as the elderly and those with disabilities must aiso have access to
housing in a community. Community care facilities provide supportive housing environment to
persons with special needs in a group situation. Restrictions that prevent this type of facilities from
locating in a community impede the equal access to adequate housing for special needs groups.
According to the State of California Department of Social Services, Community Care Licensing
Division, 112 licensed community care facilities are located in the City of San Bernardino. Table 2-
16 summarizes these facilities by type and by capacity. The majority of community care capacity in
San Bernardino is for homeless persons, 652 beds or 33 percent, and elderly persons, 597 beds or
31 percent age 60 and above. However, residential care facilities for persons with disabilities are
limited. According to the Serliice Provider Interviews Appendix A , development of such facilities is
often met with animosity.
Figure 2-6 shows the geographic distribution of these facilities in relation to low and moderate
income areas in San Bernardino. Although there are clusters of facilities in various areas throughout
the City, no concentration in the low and moderate income areas is evident. Chapter 4 describes
public policies in relation to siting requirements for community care facilities.
Table 2-16
Licensed Community Care Facilities
Total Caoaeit number of beds or Dersons
Number of Developmentally
Tyoe of Facility Facilities Total Disabled Dementia
Aduit Day Care 5 250 250 0
Adult Residential Facility 38 323 0 0
Alcoholl Drug Residential 7 N/A 0 0
Group Home 19 132 0 0
Residential Care for the Elderly 21 597 0 35
Small Family Homes 1 6 0 0
Emergency Homeless Shelters 4 94 0 0
Permanent Supportive Homeless Shelters 4 136 0 0
Transitional Homeless Shelters 13 422 0 0
Total 112 1,960 250 35
Source: State of California Department of Social Services Community Care Licensing Division, 2005
Notes:
1. The specialized care columns are not mutually exclusive. For example. a facility may have a total capacity of
10 beds, with 8 beds for developmentally disabled children and 4 of the 10 beds are designed to
accommodate non-ambulatory children.
2. Group homes provide specialized treatment for persons under age 18. Group home residents are referred by
the Department of Children and Family Services as well as the Probation Department.
3. Small family homes provide care to children in licensees own homes. Small family residents are usually
children on probation, developmentally disabled children, children with other special needs, and some foster
children.
4. Adult residential facilities provide care for persons age 18 to 59 years including both developmentally disabled
adults and persons suffering from mental illness or psychiatric disorders.
5. Elderly residential facilities provide care for persons age 60 and above.
Page 2.20
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
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2. Accessibility of Public Transit
Public transit plays an important role in analyzing access to fair housing. Public transit should link
lower income households, which are often transit dependent. to major employers where many
lower income persons may work and where job opportunities may exist. The lack of an integral
relationship between pubiic transit. major employers, and lower income housing may impede fair
housing choice because persons who depend on public transit will be limited in their choice of
where they can live.
Many lower income, elderly, and disabled persons depend on public transportation to reach
community facilities such as hospitals and clinics, community centers, libraries, and shopping
centers. Housing for the elderly and disabled should be iocated near transit routes, or alternative
transit should be available for persons with special needs.
2. .1 Public Transit
Omnitrans provides public transportation services to the City of San Bernardino and surrounding
areas of San Bernardino County. Twelve fixed-route bus lines Routes 1, 2, 3/4,5,7,8,9, 10, 11,
14, 15, and 90 provide transportation services to residents of the City of San Bernardino.
Omnitrans aiso offers a demand.response service, called Access, for persons with disabilities ADA
certified. Access provides curb-to.curb service to complement the Omnitrans fixed-route bus
system. The Access service area is defined as up to 3/4 mile on either side of an existing bus route.
Access is avaiiable Monday through Fridays and reservations must be made at least one day in
advance.
2. .2
a or mployers
This section discusses the accessibility of public transit to major employers from lower income
housing locations. These relationships help indicate whether those persons who may be
dependent on public transit have convenient access to the community, including its job
opportunities, commercial centers, and public facilities.
San Bernardino has a variety of large businesses, institutions, and agencies that provide both local
and regional employment opportunities. Major employers in the City include San Bernardino
County Sheriff s Department. Grand Terrace Police Department, Transportation Department,
Community Hospital. and California State University San Bernardino. Figure 2-6 illustrates the
relationship between public transit routes and major employers i.e" with 500 or more employees.
As shown, most major employers in San Bernardino are located along or within a quarter mile of
transit routes.
Page 2-22
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
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Fair ousing Profile
Fair housing laws are covered by federai and state regulations and court decisions that prohibit
discrimination in the rental, sale, negotiation, advertisement. or occupancy of housing on the basis
of protected classes. Implementation of fair housing practices is achieved through a network of
housing professionals, organizations, fair housing providers, government agencies, and the courts.
This chapter provides an overview of the housing industry in governing fair housing practices of its
rnembers, fair housing services availabie to residents within the City of San Bernardino, and recent
fair housing complaints, violations, and suits to determine trends throughout the City.
.1 Fair
Dusing Practices
.1.1 Fair ousing Practices in the omeownership ar et
Part of the American dream involves owning a horne in a safe neighborhood near community
amenities. Homeownership is believed to enhance one s sense of well-being, help accumulate
wealth, and strengthen neighborhoods, because residents with a greater stake in their community
will be more active in decisions affecting their community. Ensuring equal access to housing is an
irnportant way to help residents achieve that American drearn.
orne Buying Process
Purchasing a home presents many challenges. One of the main challenges in buying a home is the
process. The time required to find a horne, the major legal and financiai implications surrounding
the process, the number of steps required, and financial issues to be considered are overwhelming.
The process is costly, and fair housing issues may surface in many ways and during each stage of
the process.
Advertising: Advertising has become a sensitive issue in the reai estate and rentai housing market
because it may indicate preferences for certain buyers. Recent litigation has held pubiishers,
newspapers, Multiple Listing Services, real estate agents, and brokers accountable for
discriminatory ads. Advertising can suggest a preferred buyer in many ways: by suggesting
preferred residents, using models, publishing in certain languages, or restricting rnedia or locations
for advertising. The key is whether the advertisernent appeals to one segment of the housing
market and unduly alienates other groups. Advertisements cannot include discriminatory references
that describe current or potential residents, the neighbors or the neighborhood in racial or ethnic
terms, or other terms suggesting preferences e.g., adults preferred, ideal for married couples with
kids, or conveniently located near a Catholic church.
Lending: ualifying for a loan entails a number of steps and providing various information,
including: an application, credit check, ability to repay, amount eligible for, and choosing the type
and terms of the loan, etc. Applicants are requested to provide sensitive information, including
their gender, ethnicity, income level. age, and familial status. This information is required to be
gathered by the Community Reinvestment Act and the Home Mortgage Disclosure Act however, it
does not guarantee that individual loan officers or underwriters will not misuse the information.
CITY OF SAN BERNARDINO
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A report on mortgage lending discrimination by the Urban Land Institute describes four basic
stages in which discrimination can occur:
.
Advertising/outreach stage. Lenders may not have branches in certain locations, not
advertise to certain segments of the popuiation, or violate advertising rules with respect to
fair housing.
Pre-application stage. Lenders may not provide applicants of different racial and ethnic
backgrounds the same types of information as other preferred groups, or may urge some to
seek another lender.
Lending stage. Lenders may treat equally quaiified individuals in a different manner, giving
different loan terms, preferred rates, or denying a loan based on a factor not related to
ability to pay and risk.
Loan administration. Lenders may treat minorities in harsher terms, such as initiating
foreclosure proceedings if any payment is late, or by making loans at terms that encourage
defaults.
.
.
Appraisals: Banks order appraisal reports to determine whether or not a property is worth the
amount of the loan requested. Generally, appraisals are based on the comparable sales of
properties surrounding the neighborhood of the subject property. Other factors such as structure
age, improvements made, and location are also considered. Homes in some neighborhoods with
higher concentrations of minorities and poverty concentrations may appraise lower than like
properties in neighborhoods with lower concentrations due to the perception of crime and declining
neighborhood attractiveness. This causes lower property values in a given neighborhood, restricting
the amount of equity and capital available to those residents. Disparate treatment in appraisals is
difficult to prove since individual appraisers decide the appraisal amount and exercise a certain
amount of discretion.
Real state Agents and Sellers: The agent will find the home that fits a homebuyer s needs and
budget. Real estate agents may also intentionally or unintentionally discriminate, such as steering a
potential buyer to particular neighborhoods by encouraging the buyer to look into certain areas
others may choose not to show the buyer all choices available. Agents may also discriminate by
who they agree to represent and who they turn away.
Even if a real estate agent is following fair housing practices, a seller may not want to sell his/her
house to certain purchasers or they may want to accept offers only from a preferred group. The
Residential Listing Agreement and Seller s Advisory forms that sellers must sign disclose their
understanding of fair housing laws and practices of discrimination. Yet, enforcement is difficult,
because a seller may have multiple offers and choose one based on bias.
Insurance: Insurance agents have underwriting guidelines which determine whether or not a
company will sell insurance to a particular applicant. Currently, underwri~ng guidelines are not
public information however, consumers have begun to seek access to these underwriting
guidelines to learn if certain companies have discriminatory policies. Some states have begun to
require companies to file the underwriting guidelines with the state department of insurance,
making the information public. Texas mandates this reporting and has made some significant
findings regarding discriminatory insurance underwriting guidelines.
Many insurance companies have applied strict guidelines, such as not insuring older homes, that
disproportionately affect lower income and minority households that can only afford to buy in older
neighborhoods. A California Department of Insurance CDI survey found that less than one percent
of the homeowners insurance available in California is currently offered free from tight restrictions.
The CDI has also found that many urban areas are underserved by insurance agencies.
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.1.2 Agency Coordination in the omeownership ar et
Many agencies are invoived in overseeing real estate industry practices and the practices of the
agents involved. A portion of this oversight involves educating practitioners on fair housing laws
and monitoring compliance. The following organizations have varied levels of oversight within the
reai estate market. and some of their policies. practices, and programs are described.
ational Association of Realtors AR
The National Association of Realtors NAR is a consortium of realtors which represent the real
estate industry at the local. state. and national level. Locally, the Iniand Valley Association of
Realtors BAR is the main professional real estate association within the City of San Bernardino. As
a trade association, members receive a range of membership benefits. However. to become a
member. NAR members must subscribe to its Code of Ethics and a Model Affirmative Fair Housing
Marketing Plan developed by HUD. The term realtor identifies a licensed real estate professional
who pledges to conduct business in keeping with the spirit and letter of the Code of Ethics.
Realtors subscribe to the NAR s Code of Ethics, which imposes obligations upon realtors regarding
their active support for equal housing opportunity. Article lOaf the NAR Code of Ethics provides
that Realtors shall not deny equal professional services to any person for reasons of race, color.
religion, sex. handicap, familial status. or national origin. Realtors shall not be a party to any plan or
agreement to discriminate against any person or persons on the basis of race, color, religion. sex,
handicap, familial status, or national origin. Realtors shall not print, display or circulate any
statement or advertisement with respect to the selling or renting of a property that indicates any
preference, limitations or discrimination based on race, color, religion, sex, handicap, familial status,
or national origin.
iversity Certification: The NAR has created a diversity certification, At Home with Diversity: One
America to be granted to licensed real estate professionals who meet eligibility requirements and
complete the NAR At Home with Diversity course. The certification signals to customers that the
real estate professional has been trained on working with the diversity of today s real estate
markets. The coursework provides valuable business planning tools to assist real estate
professionals in reaching out and marketing to a diverse housing market. The NAR course focuses
on diversity awareness, building cross-cultural skills, and developing a business diversity plan.
California Association of Realtors CAR
The California Association of Realtors CAR is a trade association of realtors statewide. As
members of CAR. realtors follow a strict code of ethics. CAR holds three meetings per year for its
general membership, and meetings typically include sessions on fair housing issues. Realtor
associations are generally the first contact for real estate agents who need continuing education
courses, legal forms, career development. and other daily work necessities. The frequency and
availability of courses varies amongst these associations, and local association membership is
generally determined by the location of the broker for which an agent works. Complaints involving
agents or brokers may be filed with these associations. Monitoring of services by these
associations is difficult as detailed statistics of the education/services the agencies provide or
statistical information pertaining to of the members is rarely available. The Inland Valley Association
of Realtors is the main association serving the City of San Bernardino.
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California epartment of Real state R
The California Department of Real Estate ORE is the licensing authority for real estate brokers and
salespersons. ORE has adopted education requirements that include courses in ethics and in fair
housing. To renew a real estate license, each licensee is required to complete 45 hours of
continuing education, including three hours in each of the four mandated areas: Agency, Ethics,
Trust Fund, and Fair Housing. The fair housing course contains information that enables an agent to
identify and avoid discriminatory practices when providing real estate services.
ORE investigates written complaints received from the public alleging possible violations of the
Real Estate Law or the Subdivided Lands Law by licensees or subdividers. ORE also monitors real
estate licensees conducting business as mortgage lenders and mortgage brokers. If an inquiry
substantiates a violation, ORE may suspend or revoke a license, issue a restricted license, or file an
Order to Desist and Refrain. Violations may result in civil injunctions, criminal prosecutions, or
substantial fines. The Department publishes monthly a list of names of persons and businesses
which have been conducting real estate activities without a license.
ORE reviews Covenants, Conditions, and Restrictions for all subdivisions of five or more lots, or
condominiums of five or more units. The review includes a wide range of issues, including
compliance with fair housing law. CC Rs are restrictive covenants that involve voluntary
agreements, which run with the land they are associated with. In the past, CC Rs were used to
exclude minorities from equal access to housing. ORE reviews CC Rs and they must be approved
before issuing a final subdivision public report. This report is required before a real estate broker or
anyone can sell the units, and each prospective buyer must be issued a copy of the report. They
also maintain fair housing and ethics information on their website, including the licensure status of
individual agents.
.1.
Fair Dusing Practices in the Rental
ar et
hile the process of renting an apartment or home may be less expensive and burdensome up
front than the home-buying process, potential renters may still face discrimination during various
stages of the rental process. Some of the more notable ways in which tenants may face
discriminatory treatment are highlighted below.
Rental Process
Renting a home, while may not be as complex as purchasing a horne, may also expose prospective
tenants to various discriminatory practices.
Advertising: Similar to advertising for the sale of a home, rental advertisements may not suggest
preferences. Furthermore, given the tight rental housing market and the ease of renting out a unit,
rental vacancies are sometimes advertised only by posting a sign outside the building or through
word-of-mouth announcements. Such forms of advertising often preclude potential renters who do
not frequent a particular neighborhood or do not already have friends or relatives living in the
buildings. These practices tend to perpetuate the concentration of minorities in specific
neighborhoods.
iewing the nit: Viewing the unit is the most obvious stage where the potential renters may
encounter discrimination because landlords or managers may judge a potential tenant based on
race or disability, or appearance. For example, if a student is wearing a T-shirt with a heavy metal
band on the front design, a landlord may be suspect of the potential for loud music to be played. If
a prospective tenant arrives with many children. the landlord may be concerned that the children
may disturb other renters. The prospective tenant may also have an accent or wear religious
symbols or jewelry which may be a deciding factor on whether the landlord prefers to rent the unit.
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ualifying for the Lease: To qualify for the lease, landlords may ask potential renters to provide
credit references, list of previous addresses and landlords, and employment history/salary. The
criteria for tenant seiection, if any, are typically not known to those seeking to rent. A security
deposit is usually required. To deter less-than-desirable tenants, a landlord may ask for a security
deposit higher than for others. Tenants may also face differential treatment when vacating the
units. The landlord may choose to return a smaller portion of the deposit to some tenants, claiming
excessive wear and tear.
Administration of the Lease: Most apartments are rented under either a lease agreement or a
month-to-month rental agreement. A lease is favorable from a tenant s point of view for two
reasons: the tenant is assured the right to live there for a specific period of time and the tenant has
an estabiished rent during that period. Most other provisions of a lease protect the landlord.
Typically, the lease or rental agreement is a standard form completed for all units within the same
building. However, the enforcement of the ruies contained in the lease or agreement may not be
standard for all tenants. A landlord may choose strict enforcement of the rules for certain tenants
based on arbitrary factors, such as race, presence of children, or disability. Since the recent
escalation of housing prices throughout California, complaints regarding tenant harassment through
strict enforcement of lease agreements as a means of evicting tenants have increased.
uring the Tenancy: During tenancy, the most common forms of discrimination are based on
familial status, race, national origin, sex, or disability. Usually these types of discrimination appear in
differential enforcement of rules, overly strict rules for children, excessive occupancy standards,
refusal to make a reasonable accommodation for handicapped access, refusal to make necessary
repairs, eviction notices. illegal entry. very frequent rent increases, or harassment. These actions
may be used as a way to force undesirable tenants to move on their own without the landlord
having to make an eviction. In some cases, landlords have the ability to raise rents as frequently as
possible if not in conflict with a lease agreement state law, or done in retaliation.
.1. Agency Coordination in the Rental
ar et
Many agencies oversee the apartment rental process and related practices. This oversight includes
ensuring that fair housing laws are understood and complied with. The following organizations have
limited oversight within the rental housing market, and some of their policies are described.
California Apartment Association CAA
CM is the country s largest statewide trade association for rental property owners and managers.
CM represents rental housing owners and professionals who manage more than 1.5 million rental
units. CM has developed the California Certified Residential Manager CCRM program to provide a
comprehensive series of courses geared towards improving the approach, attitude. and
professional skills of on-site property managers and other interested individuals. The CCRM
program consists of 31.5 hours of training that includes fair housing and ethics along with other
courses.
Apartment Association of reater Inland mpire
The Apartment Association of Greater Inland Empire AAGIE serves Riverside and San Bernardino
Counties and parts of Los Angeles County. AAGiE members are persons and companies who own
or manage any number of rental housing units in the MGIE service area. AAGIE provides education
and training, business networking opportunities, and legislative advocacy. It offers CCRM courses,
including fair housing and ethics. AAGIE also offers a monthly magazine to its members, which
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Chapter 3: Fair Housing Profile
provides updated information i.e. laws, issues, new changes about the housing industry, as well
as books and other educational materials.
ational Association of Residential Property anagers ARP
NARPM promotes the standards of property management business ethics, professionalism and fair
housing practices within the residential property management field. NARPM is an association of
real estate professionals who are experienced in managing single-family and small residential
properties. In addition to services mentioned above, NARPM certifies members in the standards
and practices of residential property management industry and promotes continuing professional
education. NARPM offers designations to qualified property managers and management firms:
Residential Management Professional, RMP , Master Property Manager, MPM ,and Certified
Residential Management Company, CRMC . These certifications require educational courses in fair
housing practices.
.2 Fair
Dusing Services
Fair housing services include investigating and resolving housing discrimination complaints,
auditing and testing, education, and outreach. Landlord/tenant services involve informing landlords
and tenants of their rights and responsibilities under fair housing law and consumer protection
legislation, and mediating disputes between landlords and tenants. This section reviews the fair
housing services available in San Bernardino, the nature of fair housing complaints, and results of
fair housing testing/audits.
.2.1 Fair Dusing Service Providers
Inland Fair ousing and ediation Board IF B
The Inland Fair Housing and Mediation Board IFHMB is the primary provider of fair housing
services in San Bernardino. The City contracts with IFHMB to administer and monitor all fair housing
efforts, including providing information and education, mediation, investigation, or referral of
housing discrimination complaints. Established in 19aO, IFHMB has worked to combat housing
discrimination primarily by educating both tenants and landlords as to their rights and
responsibilities according to fair housing law. IFHMB sponsors public fair housing educational
activities, fair housing outreach activities, and fair housing referral activities. IFHMB assists with fair
housing plans, offers DRE accredited training, prepares and disseminates information to members
of the housing industry, provides technical information for conciliation, participates in area trade
shows, conducts training conferences for attorneys and advocates, and conducts tests and audits
to investigate possible discrimination.
epartment of Fair mployment and ousing F
The Department of Fair Employment and Housing DFEH investigates complaints of employment
and housing discrimination based on race, sex, religious creed, COIOf, national origin, medical
condition cured cancer only, ancestry, physical or mental disability, marital status, or age over 40
only. DFEH also investigates complaints of housing discrimination based on the above classes, as
well as children/age, and sexual orientation. Fair housing service providers work in partnership with
HUD and DFEH. Mediation/conciliation is offered as a viable alternative to litigation. The State of
California recently adopted a new mediation program which offers free services within a reasonable
time frame. Offices are located throughout California. However in some cases where litigation is
necessary, the case may be resolved via administrative filing with HUD or DFEH referral for
consideration to the Department of ustice, Civil Rights Division, Housing and Civil Enforcement
Section or referral to a private attorney for possible litigation
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Chapter 3: Fair Housing Profile
.2.2 iscrimination Complaints
During a three-year period FY 2001/02 to FY 2003/04 , IFHMB assisted 282 households, with 824
individuals beneficiaries potentially affected by housing discrimination. Overall. 147 of these
households were female heads of households. ith respect to income, approximately 54 percent
were extremely low income residents, 32 percent were very low income residents, and 9 percent
were low income residents.
IFHMB clients included all racial/ethnic groups in San Bernardino. Table 3-1 shows the racial and
ethnic characteristics of all beneficiaries for FYs 2001/02 to 2003/04. Of all of the racial and ethnic
groups in the City. Black residents were overrepresented as beneficiaries. As shown below in
Figure 3-1, Black residents represent 24 percent of all renters, but represented 52 percent of all
beneficiaries for iFHMB services. Hispanics were underrepresented, comprising 38 percent of all
renters, but represented 23 percent of all beneficiaries. hite renters comprised 32 percent of all
renters, but represented 22 percent of all beneficiaries. These figures may indicate a couple of
patterns: Blacks experience housing discrimination disproportionately Hispanics are either less
likely to experience housing discrimination or they simply do not know how and where to file for
complaints.
Table -1
Race and thnicity of Beneficiaries
2001-2002 2002-2003 2003-2004
hite 52 73 54
Black 184 176 72
Hispanic 66 66 58
Asian 16 1 0
Other 3 0 3
Total 321 316 187
The Total number of beneficiaries does not reflect the total of the numbers
for the categories above due to the way racial and ethnic statistics are
calculated. Beginning in 2004. IFHMB began to record Hispanic as an
ethnicity. Beneficiaries were still able to select a race as well. Therefore, the
numbers for each category in 2004 have some double count, which has been
accounted for by taking away the double count in the total for fiscal year
2003-04.
CITY OF SAN BERNAROINO
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Chapter 3: Fair Housing Profile
Figure 3-1
IFHMB Discrimination Complaints by Race
Discrimination Complaints By Race
60
10
o Percentage of renters by
Ra"
. Percentage of IFHMB
Beneficiares
50
40
~
'"
~
~ 30
u
:;;
Q. 20
o
White
Black
Hispanic
Asian
Other
Basis of iscrimination Complaints
Between 2002/03 and 2003/04, complaints declined 29 percent in number, from 114 complaints in
2002/03 to only 59 complaints in 2003/04. As indicated in Table 3-2, the greatest number of
housing discrimination complaints were for race/color/national origin/ancestry 45 percent,
disability 35 percent, and family status 7 percent. Information on the nature of each complaint
was only available for FYs 2002/03 and 2003/04.
Table -2
iscrimination Complaints filed in
San Bernardino from F 2 2 to 2
Percent of
Discrimination Cateaorv 2002-2003 2003-2004 Total Calls Calls
Source of Income 4 6 10 5.8
Age 1 1 2 1.2
Race/Color/Nat I Origin/Ancestry 45 33 78 45.1
Gender 7 3 10 5.8
Marital Status 4 0 4 2.3
Family Status 8 3 11 6.4
Disability 46 14 60 34.7
Rellgion 1 1 2 1.2
Sexual Orientation 4 0 4 2.3
Total 114 59 173 100.0
The total number of complaints does not reflect the total of the numbers for the categories above due to
the fact that people filing a complaint could file fOf multiple categories. For instance, one complaint in
2003/04 was filed for both source of income and national origin. One count was added to both of these
categories above. but is represented as only one complaint in the total category
isposition of Complaints
The tracking of complaints is not a simple matter. Often, when a complaint is filed with the IFHMB,
the case is either mediated, litigated, referred to other agencies, or the complainant is provided
with information regarding how to pursue this issue further. Cases may take years to mediate or
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Analysis of Impediments to Fair Housing Choice
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Chapter 3: Fair Housing Profile
litigate and outcomes of the settlements are confidential. hen cases are referred to other
agencies, the complainants must sign a release form with those agencies to release the information
to IFHMB. hen the complainants are provided information or directed to document evidence,
many do not pursue the matter further. Therefore, the disposition of complaints cannot be tracked
on a year-to-year basis, as an open case may not have resolution untii five or ten years later. In
general. about 40 percent of the complaints are mediated, 30 percent are referred to other
agencies, and 30 percent are provided with information.
iscrimination Cases from F
According to the Department of Fair Employment and Housing DFEH, 64 discrimination cases
were filed in San Bernardino from 2000 through 2004. The bases for discrimination from 2000
through 2004 are presented in Table 3-3. DFEH allows respondents to indicate more than one basis
for discrimination and prohibited act primary and secondary therefore, the total number of bases
and acts exceeds the total number of complaints.
ith respect to bases for discrimination, the main issues were race 40 percent, disability 20
percent, family status 15 percent, and national origin 11 percent. ith respect to prohibited
discriminatory acts, the main issues cited were eviction 39 percent, harassment 23 percent,
refusal to rent 14 percent, and unequal terms 14 percent.
Table -
iscrimination Complaints Received by F
City of San Bernardino 2 -2
TOTAL COMPLAINTS
BASIS OF COMPLAINT
2000
15
2004
8
Total
Percent of
Total
100.0
64
Familial Status 4 1 2 4 0 11 14.7
Race 4 9 6 5 6 30 40.0
Disability 4 4 5 1 1 15 20.0
National Origin 3 3 0 0 2 8 10.7
Sex 0 0 2 0 0 2 2.7
Association 0 1 1 1 0 3 4.0
Retaliation 0 0 1 1 0 2 2.7
Source of Income 0 0 0 0 1 1 1.3
Marital Status 0 0 3 0 0 3 4.0
Total Bases of Complaints 15 18 20 12 10 75 100.0
ALLEGED ACT
Refusal to Rent 0 4 6 0 2 12 13.8
Eviction 9 7 7 8 3 34 39.1
Refusal to Show 0 1 0 0 0 1 1.1
Denied Reasonable Accommodation 0 1 3 0 1 5 5.7
Unequal terms 2 2 3 2 3 12 13.8
Harassment 7 4 3 4 2 20 23.0
Unequal Access 2 0 0 0 1 3 3.4
Total Alleged Acts 20 19 22 14 12 87 100.0
Source: Department of Fair Employment and HOUSing
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Of the 64 total cases, 31 cases 48 percent cases were found to have no probable cause to prove
that there was a violation of fair housing laws. An additional 26 case 41 percent were settled
before a decision had been made about the merits of the complaint. In six cases 9 percent, the
complainant was not available, the processing of the claim was referred to another agency, or the
complaint was withdrawn without resolution. One case 2 percent was still open. Of the total 64
cases, no final decisions were made that there was in fact discrimination.
,2, ate Crimes
Trends and Statistics
To a certain degree, hate crimes are an indicator of the environmental context of discrimination.
Hate crimes are violent acts against peopie, property, or organizations because of the group to
which they belong or identify with. The Federai Fair Housing Act makes it illegal to threaten, harass,
intimidate or act violently toward a person who has exercised their right to free housing choice. On
the other hand, a hate incident is an action or behavior motivated by hate, but protected by the First
Amendment right to freedom of expression. Examples of hate incidents can include name calling,
epithets, distribution of hate material in public places, and other acts. Freedom of speech allows
such acts that do not interfere with civil rights. Hate crimes are typically not reported to the police
and very little information is availabie. Unlike hate crimes, however, the FBI does not keep statistics
on the number of hate incidents.
From 1998 through 2003, 27 hate crime cases were filed in San Bernardino.' As shown in Figure 3.
2, race/ethnicity-based hate crimes comprised the majority of crimes 80 percent, followed by
sexual orientation 11 percent, and religion 9 percent. The number of hate crimes in the San
Bernardino did not follow a discernable trend between the years of 1998 and 2003, as shown with
the wide range of numbers shown in Figure 3-2. Many communities across the country reported a
high number of hate crimes in 2001, attributable to the public fallout following the terrorist attacks
of September 11, 2001. However, San Bernardino recorded similar numbers of hate crimes in both
2000 and 2001. Other years recorded comparatively smaller numbers of hate crimes.
Figure -2
ate Crimes Recorded in San Bernardino to 2
2
. Disability
o Ethnicity
o Sexual Orientation
. Religion
s Race
14
12
10
8
6
4
o
1998 1999 2000 2001 2002 2003
, Uniform Crime Reports, Federai Bureau of Investigation, 1998-2003.
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To provide a measure of how San Bernardino fares with other sirnilarly sized cornrnunities, hate
crirnes were compiled for 20 different cities with a population ranging from 130,000 to 500,000.
Statistics were gathered for calendar year 2001, 2002, and 2003 frorn the FBi Uniform Crime
Reports. Results are summarized in Table 3-4. Of the 19 comparable jurisdictions in population,
San Bernardino ranks as the 7'" city with the most hate crimes on a per-l 00,000 population basis.
Table -
ate Crimes per' Population: 2 '-2
Hate Crime Statistics
Population Crimes Crimes/l00,OOO
urisdiction in 2004 2001-2003 Population Rank
Riverside 277.030 117 42.2 1
Palmdale 131,295 41 31.2 2
Sacramento 440,976 107 24.3 3
Lana Beach 487,112 102 20.9 4
Fresno 456,143 74 16.2 5
Glendale 205,341 32 15.6 6
San Bernardino 196,273 27 13.8 7
Modesto 206,188 26 12.6 8
Garden Grove 171,042 21 123 9
Fremont 209,080 25 12.0 10
Pasadena 144,004 17 11.8 11
Bakersfield 279,672 27 9.7 12
Stockton 269,147 25 9.3 13
Fontana 154.789 11 7.1 14
Chula Vista 209,133 11 5.3 15
Ontario 167,921 6 3.6 16
Rancho Cucamonaa 154.780 5 3.2 17
Santa Ana 349,123 8 2.3 18
Anaheim 343,046 8 2.3 19
Source: FBI Uniform Crime Reports
City of San Bernardino Police Policy
The City Police Department defines hate crimes to include any act of intirnidation, harassment,
physical force, or threat of physical force directed against any person, group, family, community
organization, or their property or advocate motivated in whole or in part by hostility to their race,
ethnic background, national origin, religious beliefs, gender, age, disability, sexual orientation, or
political affiliation with the intention of causing fear, injury, or intimidation or to deter the free
exercise or enjoyment of any rights protected by federal and California laws.
In recognition of the importance of protecting City residents against hate crirnes, the City of San
Bernardino Police Department adopted standard operating procedures for biased-motivated hate
crimes. Specifically, the Police Department adopted a policy to safeguard the constitutional
protections guaranteed under federal and State laws for all people regardless of race, ethnic
background, national origin, religious beliefs, gender, age, disability, sexual orientation, or political
affiliation. hen these rights are violated or infringed upon by violence or threats of violence or
other forms of harassment. the Police personnel should use every necessary resource to rapidly
and decisively identify and apprehend those responsible. All acts of biased-motivated violence will
be viewed as serious, and the investigation will be given priority attention. Biased-motivated acts
generate fear and concern arnong victims and the public. The policy calls for demonstrated
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Chapter 3: Fair Housing Profile
sensitivity toward the victims to help alleviate feelings of helplessness and hopelessness, and avoid
perceptions of callous indifference or lack of concern by the Police personnel.
.2. Fair Dusing Services and Programs
IFHMB continues to educate both tenants and landlords as to their rights and responsibilities under
fair housing laws. IFHMB intakes and investigates discrimination complaints and works in
partnership with HUD and DFEH in addressing discrimination in housing. The following are some of
the services IFHMB provides:
.
Fair ousing: Provides services mandated by Federal and State Fair Housing laws. These
laws prohibit the discrimination of individuals in the sale or rental of housing. Services
include providing information and education, mediation, investigation, or referral of housing
discrimination complaints.
.
ducation utreach: Education is believed to be one of the most important tools in ensuring
that fair housing opportunities are provided and therefore, is one of the most important
components of fair housing services. Residents with an understanding of fair housing
issues can understand their rights and responsibilities, recognize discrimination, and are
able to locate resources to file a complaint or obtain general assistance. The IFHMB
provides extensive and comprehensive educational outreach services to residents and
housing professionals in San Bernardino County in both proactive and reactive manners.
IFHMB s outreach methods include the following:
. Mails outreach materials
. Annual fair housing conference held every April
. Conducts fair housing workshops
. Fair Housing uarterly newsletter with current news and court decisions affecting
the rental business, distributed to approximately four thousand
management/property owners
. Monthly est End Senior News, containing health, travel, and local activities
information, distributed to approximately 15 hundred households not county-wide
. Bilingual informational Public Service Announcements PSAs on radio stations and
cable television
. Training meetings offered to realtors associations and apartment associations
. Operates telephone question and information line
.
Landlord Tenant ediation: Provides information on landlord and tenant rights and
responsibilities under the California Civil Code. In addition, the staff will offer to mediate
conflicts between tenants and landlords. Housing mediation is a useful tool to promote
resolutions to problems and avoid needless litigation in the rental housing industry.
.
Certified Comprehensive Counseling: Provides counseling to homeowners who are
delinquent on FHA loans regarding options available. Conducts pre-purchase and first time
homebuyer education workshops to inform potential homebuyers of the home-buying
process and their rights and responsibilities as homeowners. Counsels senior citizens who
are interested in reverse equity mortgage programs.
.
Senior Services: Actively and successfully mediates conflicts between seniors and Social
Security, Medi-Cal. utility companies, collection agencies, neighbors, and other areas in
dispute. Provides care referral services. Offers help in filing for HEAP and
Homeowner/Renter Assistance.
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Analysis of Impediments to Fair Housing Choice
2006-127
Chapter 3: Fair Housing Profile
. Alternative ispute Resolution A R: California Dispute Resolution Act of 1986 provides the
authority for mediation in the legai court system. IFHMB has a contract with the County of
San Bernardino to provide mediation with small claims and unlawful detainer lawsuits in all
of the courts in San Bernardino County.
. obile orne ediation: Specialized problem solving based on Mobile Home Residency
Law that reflects the dual ownership and a unique life style of the mobile home
community. Conducts workshops for education and to assist residents to file for refunds
on utility and property tax burdens.
. iscrimination Testing: IFHMB conducts discrimination testing in the City of San Bernardino
to determine if there was a pattern or practice of steering or providing unfavorable
treatment to prospective renters in San Bernardino based on certain characteristics of
prospective renters. IFHMB conducted 25 discrimination tests between the years of 2001
and 2005. 10 tests were conducted based upon race, 9 tests were conducted based upon
family status, 3 were conducted based on national origin, and 3 were conducted based on
disability. IFHMB was unable to provide the results of these tests because they keep the
mediation process of their testing confidential.
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page 3-13
2006-127
Cater
Lending Profile
A key aspect of fair housing choice is equal access to credit for the purchase or improvement of a
home. This chapter reviews the lending practices of financial institutions and the access to
financing for all households, particularly minority households and those with very low- or low-
incomes. Lending patterns in low- and moderate-income neighborhoods and areas of minority
concentration are also examined.
.1 Legislative Protection
In the past. credit market distortions and other activities such as redlining were prevalent and
prevented some groups from having equal access to credit. The Community Reinvestment Act
CRA in 1977 and the subsequent Home Mortgage Disclosure Act HMDA were designed to
improve access to credit for all members of the community and hold the lender industry
responsible for community lending.
.1.1 Community Reinvestment Act
The Community Reinvestment Act CRA is intended to encourage regulated financial institutions to
help meet the credit needs of communities, including the needs of low- and moderate-income
households. CRA ratings are provided by the Federal Reserve Board FRB, Federal Financial
Institutions Examination Council FFIEC, Federal Deposit Insurance Corporation FDIC, and Office
of the Comptroller of the Currency OCC. Depending on the type of institution and total assets, a
lender may be examined by different supervising agencies for its CRA performance. However, the
CRA rating is an overall rating for an institution and does not provide insights regarding the lending
performance at specific locations by the institution.
.1.2 ome ortgage isclosure Act
In tandem with the eRA, HMDA requires lending institutions to make annual public disclosures of
their home mortgage lending activity. Under HMDA, lenders are required to disclose information on
the disposition of home loan applications and on the race or national origin, gender, and annual
income of loan applicants.
This chapter examines detailed 2003 HMDA data for the City of San Bernardino. Two types of
financing conventional and government-backed are discussed. Conventional financing refers to
market-rate loans provided by private lending institutions such as banks, mortgage companies,
savings and loans, and thrift institutions. Government-backed financing refers to loans, typically
issued by private lenders that are guaranteed by federal agencies, at below market interest rates.
These loans are offered to lower and moderate-income households who may experience difficulty
in obtaining home mortgage financing in the private market due to income and equity issues.
Several federal government agencies offer loan products that have below-market interest rates and
are insured backed by the agencies. These include the Federal Housing Administration FHA,
the Department of Veterans Affairs V A, and the Rural Housing Services/F arm Service Agency
RHA/FSA. Although government.backed loans are usually offered to consumers through private
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page 4-'
2006-127
Chapter 4: Lending Profile
lending institutions, loans backed by local jurisdictions and state agencies such as silent second
loans by cities and counties and loan programs offered by the California Housing Finance Agency
are not covered under HMDA.
HMDA data provide some insight into the lending patterns that exist in a community. However,
HMDA data are only one indicator of potential problems. The data cannot be used to conclude
definite redlining or discrimination practices due to the lack of detailed information on loan terms or
specific reasonS for denial. ith regard to this analysis, it should be noted that differences in
lending outcomes do not necessarily constitute discriminatory treatment. Many factors play into the
loan application and approval process, including credit, employment history, and debt-income ratio,
among other factors.
.2 Conventional Loans
According to HMDA. 10,746 households applied for conventional home purchase loans in San
Bernardino in 2003 Table 4-1 The overail approval rate for conventional home mortgage loans
was 69 percent and the denial rate was 20 percent.
Table -1
isposition of Conventional orne Purchase in City of San Bernardino:
Loan Applications by Race of Applicant
ithdrawn or
Total Approved Denied Closed
of of of of
Race Total Total Total Total
Native American 55 1 40 73 13 24 15 4
Asian 598 6 451 75 99 17 137 8
African American 941 9 610 65 232 25 315 11
Hispanic 4,295 40 2,870 67 925 22 1.301 12
hite 2,682 25 1,988 74 431 16 633 10
oint 278 3 203 73 54 19 74 7
Other 190 2 139 73 39 21 47 6
Not Available 1,707 16 1,100 64 371 22 551 14
Total 10,746 100 7,401 69 2,164 20 3,073 11
Source: Home Mortgage Disclosure Act HMDA. 2003.
Among all applicants within the City of San Bernardino, Hispanic applicants 40 percent constituted
the largest racial/ethnic group, foilowed by hite applicants 25 percent and African American
applicants at aimost nine percent. Asian applicants constituted six percent of ail applicants, with
Native Americans comprising less one percent of appiicants. However, race and ethnicity
information is not available for 16 percent of ail loan applications in San Bernardino. Examining the
racial and ethnic make-up of San Bernardino as a whole indicates that the share of Me, Hispanic,
African American, and Asian applicants filing for home loans is generally representative of the
overail racial/ethnic profile of the community.
However, approval and denial rates varied considerably among different racial/ethnic groups. Asian
and hite applicants had the highest approval rate at 75 percent and 74 percent, respectively. In
contrast, Hispanic and African American applicants had the lowest loan approval rates at 67 percent
Page 4.2
CITY OF SAN BERNAROINO
Analysis of Impediments to Fair Housing Choice
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Chapter 4: Lending Profile
and 65 percent respectively. Among the applicants in which no racial information is available, the
approval rate was 64 percent.
,2.1 Income of Applicants
Generally, applicant income and credit history are the primary factors in determining conventional
loan approvals. In San Bernardino, approximately 41 percent all home loan applications came from
households with an income of greater than 120 percent of MFI Table 4-2. Significantly fewer ioans
originated from households that earned between 100 to 120 percent of the MFI 16 percent and
households that earned between 80 and 100 percent of the MFI 18 percent. Approximately 22
percent of all loans originated from households that earned lower and moderate incomes less than
80 percent of the MFI .
Table -2
isposition of Conventional orne Purchase Loan Applications
by Income of Applicant
ithdrawn or
Total Aooroved Denied Closed
Applicant Income of of of of
ofMFI Total Total Total Total
Low: 50 412 4 222 54 134 33 56 14
Moderate: 50 to 80 1,915 18 1,232 64 458 24 225 12
Middle: 80 to 100 1,901 18 1,302 69 421 22 178 9
Middle 100 to 120 1,699 16 1,177 69 340 20 182 11
Upper: 120 4,354 41 3,166 73 735 17 453 10
Not Available 465 4 302 65 76 16 87 19
Total 10,746 100 7,401 69 2,164 20 1,181 11
Source: Home Mortgage Disclosure Act HMDA, 2003.
Typically, an inverse relationship exists between denial rates and the income of applicants. In San
Bernardino, the approval rates among upper income applicants earning above 120 percent of the
MFI was the highest among all income groups, at 73 percent. In comparison, low and moderate
income households had significantly lower approval rates. Moderate income households earning
between 50 to 80 percent of the MFI had an approval rate of 65 percent, while low income
households earning less than 50 percent of the MFI had an approval rate of 54 percent.
.2.2 Race ifferences by Income of Applicant
hile income and affordability are important factors in determining access to financing, as isolated
factors they present no fair housing concerns. To dissect the lending pattern in the community,
further analysis was conducted to examine lending patterns by race and income level.
As indicated in Table 4-3, among upper income applicants 120 percent of MFI, Asian and hite
applicants had the higher approval rates among all racial groups in the City at 80 and 77 percent,
respectively. This was a noticeably higher approval rate than Hispanic households 70 percent and
African American applicants 66 percent in the same income group. Among middle income
households, hite and Asian applicants continued to have higher approval rates than other
applicants. However, the rates did not vary as greatly.
Cl1Y OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
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2006-127
Chapter 4: Lending Profile
Among applicants that earned between 50 to 80 percent of the MFI, hite, Asian, and Hispanic
applicants had similar approval rates that are much higher than that achieved by African American
applicants. For the low income applicants less than 50 percent MFI , Asian applicants were singled
out with a significantly higher approval rate than other groups. However, the limited number of
Asian applicants in this income group might have skewed the results.
Table -
Approval Rate of Conventional ome Purchase Loan Applications
by Appl icant Race and Income
hite Hisoanic African American Asian
Applicant Income of of of of
ofMfl Total Total Total Total
Low: 50 38 53 125 57 16 50 8 73
Moderate: 50 to 80 215 66 723 65 72 56 38 68
Middle: 80 to 100 259 73 649 68 123 71 56 67
Middle: 100 to 120 323 78 454 67 118 67 79 73
Upper: 120 1,089 77 797 70 265 66 264 80
Not Available 64 65 122 0.5 16 55 6 50
Total Approved 1,988 74 2,870 67 610 65 451 75
Source: HMDA data tabulated using Peertrax software by the Centrax Group. 2003.
ole A Ilcams who filed oint a lications can be of different racial ethnic backgrounds; however, H A data does not
roy/de a means of identifying the racial ethnic backgrounds of oint a Ileanls.
According to a 2002 nationwide study completed by HUD,l African American and Hispanic
homebuyers in California and the nation face a significant risk of unequal treatment when they visit
mainstream mortgage lending institutions to make pre-application inquires. The extensive study
was based on 4,600 paired tests, conducted in 23 metropolitan areas nationwide during the
summer and fall of 2000. The study utilized paired testing for determining whether minority
home buyers receive the same treatment and information as hites in the pre-application phase of
the mortgage lending process. Discriminatory treatment at this early stage in the lending process
has the potential to discourage some minorities from continuing their housing search, to limit their
search to lower cost homes, and to prevent them from choosing the most favorable loan products.
Although testing was not conducted within San Bernardino County, the study included paired
testing within the nearby counties of San Diego and Los Angeles. ith respect to Hispanic and
African American home buyers, the study identified the following key issues:
. In 2000, non-Hispanic hites were consistently favored in 20 percent of tests. In particular,
non-Hispanic hites were more likely to receive information and assistance with financing,
and to be shown homes in non-Hispanic neighborhoods than comparable Hispanic
home buyers. However, discrimination against Hispanic home buyers has declined in 2000
compared to similar study that was conducted 1989.
. African Americans were offered less coaching than comparable hite homebuyers, and
were more likely to be encouraged to consider an FHA loan.
All ther hings eing ual A Paired esting tudyof or/gage Lending Institutions. HUD 2002
Page 4-4
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
2006-127
Chapter 4: Lending Profile
Conventional
ome Improvement Loans
Approximately 53 percent of the housing units in the City of San Bernardino are older than 30 years
of age.' This significant proportion of older homes indicates a need for ongoing home
improvement financing in the community. This section assesses the availability of home
improvement financing in San Bernardino.
. .1 Race of Applicants
In 2003, 1,626 households applied for conventional loans from private lending institutions for home
repairs and improvements see Table 4-4. The largest racial/ethnic group was Hispanic applicants
28 percent followed closely by hite applicants 24 percent. Approximately ten percent of home
improvement loan applications were from African American households. followed by Asian
households at two percent. However, race/ethnicity information for 32 percent of all applicants was
not available.
At 39 percent, the overall level of home improvement loan approval rate in the City of San
Bernardino was much lower than that for home purchase loans 69 percent. 3 Among all racial and
ethnic groups, hite and Asian applicants had the highest approval rate. at 44 and 43 percent,
respectively. Hispanic households had a slightly lower approval rate of 40 percent. African
American applicants had the lowest approval rate among all racial and ethnic groups at 34 percent.
However, due to the limited number of applications from Asian and Native residents. an accurate
level of approvals and denials is difficult to determine.
Table -
isposition of Conventional ome Improvement Loan Applications
by Race of Applicant
ithdrawn or
Total Aooroved Denied Closed
of of of of
Race Total Total Total Total
Native American 7 0.4 3 43 1 14 3 43
Asian 30 2 13 43 13 43 4 13
African American 161 10 54 34 81 50 26 16
Hispanic 449 28 179 40 207 46 63 14
hite 386 24 170 44 156 40 60 16
oint 36 2 23 64 10 28 3 8
Other 35 2 12 34 17 49 6 17
Not Available 522 32 176 34 220 42 126 24
Total 1,626 100 630 39 705 43 291 18
ole A licants who filed oint a lications can be of different racial ethnic backgrounds; however, H A data does not
rovide a means of identifying the racial ethnic backgrounds of oint a licants.
Source: HMDA data tabulated using Peertrax software by the Centrax Group, 2003.
2000 Census.
Many homeowners, who already have mortgage loans. may find it hard to qualify for home improvement loans due to
the high debt-to.income ratio.
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page 4-5
2006-127
Chapter 4: Lending Profile
. .2 Income of Applicants
Similar to home purchase financing, most of the home improvement loan applications were filed by
households earning over 120 percent of the County MFI Table 4-5. Approximately 37 percent of
these applications in the City were filed by upper-income households 120 percent MFI , while
only 30 percent were from low and moderate income households 80 percent MFI. Lower and
moderate income homeowners would most likely incur too high a debt-to-income ratio with the
mortgage loan to qualify for additional financing. Also, home improvement may not be a priority for
lower and moderate income households. Similar to home purchase loans, approval rates were
correlated with income levels. The approval rate for upper-income households was approximateiy
50 percent, compared to 28 percent for moderate-income households and 27 percent for low-
income households.
Table -5
isposition of Conventional orne Improvement Loan
Applications by Income of Applicant
ithdrawn or
Total Aooroved Denied Closed
Applicant Income of of of of
ofMFI Total Total Total Total
Low: 50 142 9 38 27 82 58 22 15
Moderate: 50 to 80 344 21 98 28 175 51 71 21
Middle: 80 to 100 280 17 98 35 130 46 52 19
Middle: 100 to 120 245 15 92 38 103 42 50 20
Upper: 120 600 37 299 50 211 35 90 15
Not Available 15 1 5 33 4 27 6 40
Totai 1,626 1005 630 39 705 43 291 18
Source: HMDA data tabulated using Peertrax software by the Centrax Group. 2003.
ithdrawn applications are files withdrawn by the applicant during the lending process Closed applications are files
closed by the lender for incompleteness.
Conventional Financing by Lender
..1 ome Purchase Loans and ome Improvement Loans
In 2003, the top five home loan lenders received approximately 26 percent of all the home purchase
loan applications in the City of San Bernardino. These top five lenders had an average approval rate
of 79 percent, considerably higher than the 69 percent approval rate recorded by all of the financial
institutions combined.
Among the top lenders, First Franklin had the highest loan approval rate at 83 percent, followed by
Countrywide Home Loans with a loan approval rate of 81 percent and ashington Mutual Bank
with a rate of 75 percent. BNC Mortgage and Fremont Investment and Loan had slightly lower
approval rates at 74 percent each. Countrywide Home Loans had the smallest proportion of denied
applications at seven percent. In contrast, BNC Mortgage and Fremont Investment and Loan had
the largest proportion of denied applications 24 percent.
Only one percent of home loan applications were withdrawn from First Franklin Financial
Corporation while Countrywide Home Loans had the greatest proportion of withdrawn or closed
Page 4-6
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
2006-127
Chapter 4: lending Profile
loan applications due to incomplete information at 11 percent. The potential concem with
applications closed because of incomplete information is to what extent applicants are given
adequate assistance.
Table -6
isposition of Conventional Loan Applications
by Lending Institution
lender
Home Purchase Loans
T otalloan
A lications
Percent
A roved
Percent
Denied
ithdrawn
or Closed
First Franklin Financial Corporation 883 83 16 1
Countrywide Home Loans 603 81 7 11
ashington Mutual Bank 459 78 20 5
Fremont Investment and Loan 448 74 24 2
BNC Mortgage 357 74 24 2
0 Lenders 2,750 79 17 4
oral arket 10,746 69 20 11
0 arket hare 26 29 22 10
Home Improvement Loans
Beneficial 279 33 44 23
GreenHght Financial Services 154 56 21 23
GMAC Mortgage Corporation 189 35 43 22
Household Finance Corporation 331 17 55 28
eybank USA, N.A. 112 50 49 1
0 Lenders 1,065 34 44 22
Olal arket 1,626 39 43 18
0 arket hare 65.5 57 67 81
Source: HMDA data, Peertrax software, Marquis Software Solutions Inc.. 2003.
ithdrawn indicates files withdrawn by the applicant during the lending process Closed indicates
application files closed by the lender for incompleteness.
Also shown in Table 4-6 are the top five lenders for home improvement loans in the City of San
Bemardino. These top five lenders received 66 percent of all applications submitted for home
improvement loans in the community. The top lenders approved approximately 34 percent of loan
applications, slightly lower than the 39 percent approval rate for all lenders in the City. Among the
top lenders, Greenlight Financial Services had the highest approval rate at 57 percent, followed by
eybank USA at 50 percent, and GMAC Mortgage Corporation at 35 percent. Household Finance
Corporation had the lowest approval rate with only 17 percent of all loans approved. Consistent
with the institution s high approval rates, Greenlight Financial Services had the smallest proportion
of denied applications at 21 percent, while Household Finance Corporation had the greatest
proportion of denied applications at 55 percent.
Only one percent of all loan applications processed by eybank USA, N.A. were withdrawn or
closed. In contrast, 28 percent of all loan applications through Household Finance Corporation
were withdrawn or closed due to incomplete information.
The Community Reinvestment Act CRA is intended to encourage regulated financial institutions to
help meet the credit needs of entire communities, including low and moderate income
neighborhoods. CRA ratings are provided for the main or regional headquarters of the financial
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page 4-7
2006-127
Chapter 4: Lending Profile
institutions. Only three of the top five lenders received CRA ratings recently. Among the top ten
lenders active in the City, half received ratings from the FFIEC: ashington Mutual Bank, Freemont
Investment Loan, BNC Mortgage, ells Fargo Home Mortgage, and Long Beach Mortgage
Company. Table 4-7 illustrates the rating received by each financial institution. These institutions
received either Outstanding or Satisfactory ratings.
Table
Lending Institutions
Community Reinvestment Act Ratings
Supervising
Institution Name State AQencv Year Rated Ratina
ashington Mutual Bank. FA CA OTS 92, 94, 96 Outstanding
Freemont Investment Loan CA FDIC 94, 96, 00, Outstanding!
03 Satisfactory
BNC Mortgage Multiple OCC 95, 96, 97, Satisfactory
99, 04
ells Fargo Home Mortgage CA OCC 94, 96, 98, Outstanding!
00 Satisfactory
Long Beach Mortgage Co, CA OTS, OCC 90, 93, 94 Outstanding!
Satisfactory
Source: Federal Financial Institutions Examination Councils FFIEC eb site. Z005.
A common obstacle for first-time home buyers in achieving homeownership is the difficulty in
saving adequate funds for a downpayment. Among the five top lenders - three offer special
mortgage programs that allow first-time homebuyers to contribute three percent or less for
down payment,
Countrywide offers a variety of down payment assistance programs, including no-
downpayment options and low-down payment options, The era own Plus L
program provides an opportunity for potential homebuyers that have little cash for their
down payment and good credit There is no down payment required, Closing costs can be
financed up to an additional three percent of the loans value,
Countrywide slow downpayment loans options include the F A Flex program for
potential homebuyers that have little cash for their down payment and have good credit
There is a three percent down payment required, but it can come from alternative sources
such as gifts from immediate family members, grants from non-profit agencies and
community assistance programs. Closing costs can be covered by those same sources,
seller contributions or through a slightly higher rate, There are no income/earning
restrictions.
. ashington utual offers a Low Down Payment loan that provides first time homebuyers
and low to moderate income households the ability to borrow up to 252,000 towards the
purchase a home with as little as a three percent down payment, The down payment can
also come from a variety of sources including a credit care advance, or a gift from a family
member as an unsecured personal loan.
. First Fran lin offers a zero-down payment program for homebuyers with high credit scores,
The maximum loan amount is up to 500,000 for this program and a maximum dept ratio of
50 percent is allowed for first-time homebuyers,
Page 4-8
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Analysis of Impediments to Fair Housing Choice
2006-127
Chapter 4: Lending Profile
.5 City County-Sponsored
Rehabilitation Programs
ome
Assistance
and
In addition to the programs offered by commercial lenders, the City and County of San Bernardino
also offer a number of homeownership assistance and rehabilitation programs.
.5,1 omeownership Programs
Homeownership assistance programs availabie to San Bernardino City residents include:
.
ortgage Assistance Program AP
The City of San Bernardino s Economic Development Agency s Mortgage Assistance
Program MAP provides down payment/closing costs assistance to qualified first time
buyers with incomes not exceeding 120 percent of MFI. The eligible home buyer must buy
a home, condominium, or townhouse, or a lender/HUD foreclosure house in the City. The
Agency can assist with 20 percent of the purchase price of the home, but the homebuyer
must contribute no less than 1,000. In addition, the homebuyer must attend a 16-hour
homebuyer education program offered by the Neighborhood Housing Services.
. omebuyer ducation and Financial Counseling
This project, operated by the Neighborhood Housing Services of Inland Empire, Inc.,
provides home buyer education and financial counseling services to low and moderate
income households embarking on the purchase of a home. The counseling teaches
participating families about basic household budgeting, the importance of savings, and
major repairs and other regular household maintenance. Applicants for funding under the
City s Mortgage Assistance Program are required to complete the 16-hour Homebuyer
Education and Financial Counseling course.
.
Lease-to- wn Program
Through a oint Powers Authority known as the Riverside-San Bernardino Housing and
Finance Agency, the City participates in a Lease-to-Own Program that is marketed to
renters earning up to 140 percent MFI. A participating renter may lease a single-family
home for up to three years, with rental payments credited toward the purchase of the
home. After three years of timely payments, the participant can receive title to the property
and assume the mortgage payments.
. Section
omeownership Program
The Section 8 Homeownership Assistance Program provides the option for qualified
families/individuals to choose between rental assistance and homeownership assistance.
The program will assist eligible low income families or individuals to purchase a home
within the jurisdiction of the Housing Authority of the County of San Bernardino HACSB.
In order to increase the level of affordable horneownership, the Section 8 Homeownership
Assistance Program enables families to qualify for mortgage loan payments that would not
otherwise be affordable for the households based upon their income.
CITY OF SAN BERNAROINO
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Chapter 4: Lending Profile
.5.2 ome Improvement Programs
Rehabilitation assistance programs available to San Bernardino City residents include:
. obile ome Repair rant
This program. operated by the City of San Bernardino Redevelopment Agency. provides
grants of up to 5.000 to mobile home owners with incomes not exceeding 60 percent of
MFI to make minor repairs and improvements per local and state codes. If the owner sells
or changes registered ownership within one year after the work is complete, the funds are
100 percent repayable.
. Iderly Special eeds inor Repair rant Program
The Oldtimers Foundation, a non. profit corporation, working under contract with the City of
San Bernardino Redeveiopment Agency. makes minor repairs for low income homeowners
80 percent and below MFI. The repair amounts cannot exceed 750 per house. To be
eligible for this program, the applicant must be either a senior age 60. disabled, or a
recipient of 5.5.1.
. Single-Family Beautification rant Program
This program is intended to assist homeowners occupying single-famiiy dwellings to make
improvements to their homes. Improvements may include: roof replacement, exterior
painting. landscaping, plumbing. flooring. structural deficiencies, etc. A homeowner must
own their home for not less than one year and may earn not more than 120 percent of the
MFI. A homeowner must agree to live in the home for at least one year following
completion of work or the Grant must be repaid. This program is administered by
Neighborhood Housing Services of Inland Empire, Inc. NHSIE.
. IP ome Improvement eferred Loan and Beautification rant
The City of San Bernardino Economic Development Agency in cooperation with
Neighborhood Housing Services of the Inland Empire, Inc. NHSIE offers a program that
helps income.eligible households in the Neighborhood Initiative Program NIP Target Areas
improve their homes. Low interest deferred loans and grants are available to heip finance
housing improvements.
Eligible households must live in the City of San Bernardino NIP Target Areas. and own their
home for at least one year, need repairs, and meet the required income guidelines.
Assistance includes:
ome Improvement Loan: Provides up to 35,000 for needed improvements available at
three percent simple interest. This loan is deferred and is repaid only when the property is
sold, transferred. rented. leased or refinanced. A Deed of Trust is used to secure the loan
I ien on property .
Beautification rant: In conjunction with the 35,000 loan, owners may receive a grant of
up to 10.000 to enhance and beautify the exterior of their home and improve
neighborhood conditions, such as, painting, fencing and landscaping.
Page 4-10
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Chapter 4: Lending Profile
.6
overnrnent-Bac ed
orne Loan Applications
Government-backed financing represents an aiternative to conventional financing. Sources of
government-backed financing include the Federal Housing Administration FHA, the Department of
Veterans Affairs VA, and the Rural Housing Services/Farrn Service Agency RHS/FSA.
.6.1 orne Purchase Loans
In the City of San Bernardino, 2,039 households applied for government-backed financing to
achieve homeownership, compared to 10,746 households that applied for conventional home
purchase loans. As is typically the case, approval rates for government-backed loans were higher
75 percent than conventional financing 69 percent see Table 4-8. The denial rate for
government-backed financing was also considerably lower 12 percent compared to conventional
loans 20 percent.
As was the case for the conventional home loan market, Hispanic households were the biggest
user of government-backed financing, representing 52 percent of the applications. The second
biggest user of government-backed financing were hite households, which comprised one
quarter of all applicants. hen Tables 4-1 and 4-9 are considered together, a greater proportion of
Hispanics 52 percent relied on governrnent-backed financing than conventional financing 40
percent. In contrast, the same proportion of hites 25 percent relied on conventional home
purchase loans and governrnent-backed financing.
Few low income households utilized government-backed financing and even fewer got approved for
their loans Table 4-10. As discussed before, many low income households most likely cannot
afford to maintain both mortgage and improvement loans. Approval rate for low income
households for government-backed financing was noticeably lower than the rates for other groups.
Moderate and middle income households were generally the biggest users of this resource.
Table -
Comparison of Conventional and overnment-Bac ed orne Purchase Loan Applications
Conventional
of
Applications
7,401
2,164
1,181
.-_.-
10,746
Government-Backed
Disposition
Loans Approved
Denied
Closed, ithdrawn
Total
of
Total
69
20
-,_.-~...
11
100
of
Applications
1,530
239
270
2,039
of
Total
75
12
13
100
Source: HMDA data tabulated using Peertrax software by the Centrax Group. 2003.
ithdrawn applications are files withdrawn by the applicant during the lending process. Closed applications
are files closed by the lender for incompleteness.
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice Page 4.11
2006-127
Chapter 4: Lending Profile
Table -
isposition of overnment-Bac ed ome Purchase Loan Applications by Race of Applicant
ithdrawn or
Total Aooroved Denied Closed
of of of of
Race Total Total Total Total
Native American 5 1 3 60 0 0 2 40
Asian 47 2 31 66 10 21 6 13
African American 177 9 121 68 28 16 28 16
Hispanic 1,058 52 767 72 146 14 145 13
hite 511 25 428 84 31 6 52 10
oint 63 3 49 78 4 6 10 16
Other 22 1 17 74 1 5 4 18
Not Available 156 8 114 73 19 12 23 15
Total 2,039 100 1,530 75 239 12 270 13
Source: Home Mortgage Disclosure Act HMDA, 2003.
Table -1
isposition of overnment-Bac ed ome Purchase Loan Applications by Income of Applicant
ithdrawn or
Total Annroved Denied Closed
Applicant Income of of of of
ofMFI Total Total Total Total
Low: 50 159 8 108 68 29 18 22 14
Moderate: 50 to 80 642 32 489 76 67 10 86 13
Middle: 80 to 100 488 24 358 73 56 12 74 15
Middle 100 to 120 329 16 261 79 32 10 36 11
Upper: 120 322 16 251 78 38 12 33 10
Not Available 99 5 63 64 17 17 19 19
Total 2,039 100 1,530 75 239 12 270 13
Source: Home Mortgage Disclosure Act HMDA, 2003.
Lending in Low
eighborhoods
oderate Income and
inority
Analyzing lending patterns by neighborhood characteristics is also irnpOltant to determine whether
loans are being issued to neighborhoods with higher concentrations of minorities or lower income
applicants. The lack of home purchase loans to one or more neighborhoods has been the subject of
alleged practices of redlining. To analyze differences between income groups, census tracts were
classified into three income categories low-moderate, middle, and upper, as well as three levels of
minority concentrations, representing low, medium, and high concentrations of minorities.
Table 4-11 displays the approval rate for conventionally financed home loans in San Bernardino by
neighborhood income level and concentration of minority households. Almost half of home loan
applications in San Bernardino were filed for homes in Middle income census tracts, Moderate
income census tracts accounted for 28 percent of all applications, while 15 percent of all
Page 4-12
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
2006-127
Chapter 4: Lending Profile
applications were for homes in Low income census tracts. Only 10 percent of all home purchase
loan applications were for homes in Upper income areas, possibly due to the fact that fewer tracts
in San Bernardino are considered as Upper income.
Table -11
Lending to Low oderate I ncome and inority eighborhoods
Percent of Loan
A Iications
Loan Approval
Rate
Neighborhood income Level
Low. 50 percent of County MFI 15 64
Moderate - 5Q.80 percent of County MFI 28 63
Middle. 8Q.120 percent of County MFI 49 72
Upper- 120 percent of County MFI 10 78
Min()(ity Neighborhoods
Less than 20 Low 2 69
20 to 50 Moderate 22 77
50 High 76 67
Source: Home Mortgage Disclosure Act HMDA, 2003.
Overall, home purchase loan applications for homes in higher income census tracts had higher
approval rates than applications for homes in lower income tracts. Approval rates ranged from 78
percent in Upper income census tracts to 64 percent approval rates in Low income areas. Only two
percent of the loan applications were for areas with low concentrations of minorities. Census tracts
with high concentrations of minority households accounted for more than three-quarters of all
home loan applications in the City. These neighborhoods had an approval rate of 67 percent.
However, neighborhoods with just moderate concentrations of minority households had a much
higher loan approval rate of 77 percent.
Subprime Lending
ar et
In general. lending institutions are divided into two categories based on the type of loans or
mortgages they offer: rime and sub rime. According to the Federal Reserve, prime mortgages are
offered to persons with excellent credit and employment history and income adequate to support
the loan amount. Subprime loans provide financing to persons who do not satisfy standard
underwriting guidelines due to self employment, variable income, or less than perfect credit. In
general, the quality of the loan defines the loan as subprime. Subprime loans usually have an
interest rate of at least one to six percentage points above that of a prime mortgage.
Another important distinction is the lack of regulatory oversight of many lending institutions that
originate subprime loans. According to a Federal Reserve report, many subprime lenders are not
owned by regulated financial institutions. Unlike banks and savings and loans, which must submit
regular regulatory compliance audits and whose activities are overseen by a variety of institutions,
many subprime lenders are not subject to rigorous oversight. Independent mortgage companies do
most of the subprime lending in the United States, and only the Federal Trade Commission, which
has limited resources for the immense market it monitors, regulates subprime lenders. However, in
recent years, an increasing number of large banks such as Citibank, Countrywide, and ashington
Mutual have entered the subprime market directly or through the acquisition of other financial
institutions.
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page 4-13
2006-127
Chapter 4: Lending Profile
Though the subprime lending market usually follows the same guiding principles as the prime
market specific risk factors have been associated with this market. According to a joint
HUDlDepartment of the Treasury report subprime lending generally has the following
characteristics:' higher risk and loan defaults lower loan amounts higher costs to originate loans
faster prepayments and overall higher loan fees. Moreover, a recent study on subprime lending
throughout California concluded that more than one-third of borrowers included in the study may
have been victimized by predatory lending and that many experienced aggressive marketing
techniques, change in loan terms for the worst at closing, higher prepayment penalties, and points
and fees exceeding five percent of the loan amount.'
Among the top lenders in the City of San Bernardino, many are identified by HUD based on 2002
HMDA data as subprime lenders: Freemont Investment Loans BNC Mortgage, Inc., Long Beach
Mortgage Company First Franklin Financial Corporation Household Financial Corporation
Beneficial Corporation and eybank USA. However, this is not to say that these lenders practiced
predatory lending, just than borrowers potential exposure to predatory lending practices may be
increased.6
Predatory Lending
Predatory lending has become a growing issue in California due to the state s tight housing market,
high home costs, and large minority and elderly population. Predatory lending occurs when
potential buyers are looking to purchase a new home or when existing homeowners refinance their
home to consolidate current debts. Predatory lending involves abusive loan practices usually
targeting minority and/or low-income homeowners or those with less-than-perfect credit history.
Predatory lending is difficult to define since a 15 percent interest rate on a loan to one person could
be predatory while it might be appropriate for another based on the borrower s risk factors.
Predatory lending includes at least 39 different types of practices from the origination to collection
of the loan. These practices typically target and steer low-income, minorities, or the elderly to high-
rate lenders. According to the Federal Home Loan Mortgage Corporation, predatory lending
practices include high interest rates more than seven or eight points above market rates,
excessive upfront fees, negative amortization repayment schedules whereby the monthly payment
fails to payoff accrued interest and actually increases the original amount borrowed, balloon
payments, high loan-to-value loan, mandatory arbitration clauses, and high-pressure sales tactics.
HUD has raised concern about two categories of improper or predatory lending practices. The first
type involves blatant fraud or acts of deception such as forging signatures or obtaining signatures
on blank documents, falsifying loan applicant income or appraised value of the property, or
employing bait and switch tactics. A second type, often more difficult to identify, involves various
manipulative practices that cause borrowers to enter into abusive loans. Common abusive loans
include:
. uity Stripping: This type of practice occurs when a loan is based on the equity of a home
rather than the borrower s ability to repay. This type of loan often has high fees,
prepayment penalties, and different terms and conditions than a regular home loan.
u.s. Department of Housing and Urban Development and the U.S. Department of Treasury. Curbing Predatory Home
or/gage Lending. une 2000.
tolen ealch, Ine uities in California 5 ub rime ortgage arket. California Reinvestment Committee. November
ZOO1.
Subprime and Manufactured Home Lenders List, HUD, 2003, www.HUDuser.org
Page 4-14
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
2006-127
Chapter 4: Lending Profile
. Pac ing: This involves the practice of adding credit insurance or other extras into the loan.
The supplements to the loan are often very profitable to the lenders and are typically
financed in a single up-front or balloon payment.
. Flipping: This practice is a form of equity stripping and happens when a lender convinces a
borrower to repeatedly refinance a loan within a short period of time. The lender typically
charges high points and fees each time as part of the mortgage.
Predatory lenders receive some scrutiny under the Fair Housing Act of 1968, which requires equal
treatment in the terms and conditions of housing opportunity and credit regardless of race, religion,
color, national origin, family status, or disability. The Equal Credit Opportunity Act of 1972 also
requires equal treatment in loan terms and availability of credit for all of the above categories, as
well as age, sex, and marital status. Lenders would be in violation of these acts if they target
minority or elderly households to buy higher-priced loan products, treat loans for protected classes
differently, or have practices that have a disproportionate effect on the protected classes.
In addition, the Truth in Lending Act T1LA requires lenders to inform the borrower about payment
schedules, loan payments, prepayment penalties, and the total cost of credit. In 1994, Congress
amended T1LA and adopted the Home Ownership and Equity Protection Act. This Act requires that
lenders offering high-cost mortgage loans disclose information if the annual percentage rate APR
is ten points above the prime or if fees are above eight percent of the loan amount, prohibits
balloon payments for short-term loans and, for longer covered loans, requires a warning if the
borrower could lose the home if they default on the loan payment.
In 2001, California became the second state to pass a law banning predatory lending, codified as
AB489 and amended by AB344. The law provides protections against predatory lending to
consumers across the state with respect to financing of credit insurance, high loan and points,
steering and flipping, balloon payments, prepayment penalties, call provisions, interest rate
changes upon default, or encouragement to default when a conflict of interest exists. The law
enables state regulators to enforce and levy penalties against licensees that do not comply with the
provisions of this bill.
.1
ome Insurance Loan
utcomes
For many individuals and families, soaring home prices have made it too difficult to afford a home
without down payment assistance. Lenders typically require private mortgage insurance on
conventional home loans when the downpayment is less than 20 percent of the sales price of the
home. Mortgage insurance is typically required on most conventional mortgages because
experience reveals a strong correlation between borrower equity and default. Private mortgage
insurance is a financial guaranty that protects lenders against loss in the event that a borrower
defaults.
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page 4-15
2006-127
Chapter 4: Lending Profile
Unlike the eRA reporting requirements for home purchase, refinance, and improvement loans,
financial institutions issuing mortgage insurance have fewer requirements. The FFIEC reached an
agreement with the Mortgage Insurance Companies of America MICA to allow eight private
mortgage insurers to collect HMDA data beginning in October 1993. Each year, the participating
insurers disclose their mortgage insurance activities. As a small sample, MICA data represents less
than 20 percent of the records in HMDA data.
Table 4-12 analyzes the approval rates for private mortgage insurance for conventional home
purchase loans and conventional refinance loans by race and ethnicity. The approval rate for private
mortgage insurance remained relatively the same regardless of race or ethnicity. hite and
Hispanic applicants for conventional home purchase loan insurance had the same high approval
rate of 95 percent. Asians and African Americans had slightly lower approval rates of 93 percent.
Home mortgage insurance approval rates for home loan refinancing also had very little fluctuation
based on race or ethnicity.
Table -12
Approval Rate for Conventionally Financed orne ortgage Insurance
in San Bernardino 2
RaceJEthnicity
Conventional Home Purchase
Applications
Percent Approved
hite 6,307 95
Hispanic 647 95
African-American 4,947 93
Asian 913 93
Other 12,814 95
Total 25,628 94
Conventional Refinance
hite 5,455 94
Hispanic 564 94
African-American 2,852 94
Asian 394 93
Other 8,654 95
Total 17,919 95
Source: Mortgage Insurance Companies of America
Page 4-16
CITY OF SAN BERNAROINO
Analysis of Impediments to Fair Housing Choice
2006-127
Cater
Public Policies and Programs
Public policies can affect housing development and therefore, may have an impact on the range
and location of housing choices available to residents. Fair housing laws are designed to
encourage an inclusive living environment and active community participation. An assessment of
public policies and practices enacted by the City can help determine potential impediments to fair
housing opportunity.
To identify potential impediments to fair housing choice and affordable housing development, the
City s Housing Element, General Plan, Development Code, Consolidated Plan, and other documents
have been reviewed and presented in this chapter.
5.1
eneral Plan and
evelopment Policies
5.1.1
eneral Plan Land se lement
The City of San Bernardino General Plan sets forth the City s policies for guiding local development.
These policies, together with existing zoning, establish the amount and distribution of land to be
allocated for various uses throughout the City. The residential land use categories identified in the
General Plan are outlined in Table 5-1. The City is currently undertaking a comprehensive update to
its General Plan. As part of this update, land use policies regarding residential opportunities will be
evaluated.
5.1.2 eneral Plan Dusing lement
The 2000-2005 Housing Element extended to 2008 by legislation identifies the following goals:
1. Facilitate the development of a variety of types of housing to meet the needs of all income
levels in the City of San Bernardino
2. Conserve and improve the condition of the existing affordable housing stock and revitalize
neighborhoods containing a substantial percentage of deteriorated dwelling units
3. Assist in the development of adequate housing to meet the needs of low and moderate
income households
4. Assist the provision of housing for residents with special needs
5. Reduce the adverse effects of governmental actions on the production, preservation, and
conservation of housing, particularly for low and moderate income households
6. Promote equal housing opportunity for all residents of the City of San Bernardino
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page 5.'
2006-127
Chapter 5: Public Policies and Programs
To implement these housing goals, the Housing Element included a number of programs:
.
omeownership pportunities: To expand homeownership opportunities for households
interested in purchasing their first home, the City offers the Mortgage Assistance Program
MAP that provides deferred ioans of up to 10 percent of the purchase price of the home to
first time homebuyers.
.
ousing Rehabilitation: The City offers several housing rehabilitation programs for single-
family developments. These programs include the Single-Family Dwelling Maintenance
Grant Program, the Mobile Home Grant Repair Program, the Elderly/Special Needs Minor
Repair Grant Program and the Neighborhood Initiative Program - Home Improvement
Deferred Loan and Beautification Grant.
.
obile ome Rental Assistance Program: The City utilizes Redevelopment Set-Aside funds,
when available, to provide financial assistance in paying mobile home space lease costs to
eligible low income seniors.
.
Infill ousing Program: This program was designed to create high quality housing on
unimproved vacant infill sites within established neighborhoods throughout the City. The
City works with local developers and lending institutions interested in joint ventures to
create affordable housing opportunities for first-time homebuyers.
xpand Affordable ousing pportunities: The City works with non-profit developers to
provide affordable housing opportunities in the City. The City assists affordable housing
developers with financial and technical assistance, including offsetting development fee
costs, providing set-aside funds, financing infrastructure and other regulatory incentives.
An important component of the State Department of Housing and Community Development HCD
approval of any housing element includes a determination that the local jurisdiction s policies do not
unduly constrain the maintenance, improvement, and development of housing for all income levels.
The 2000-2005 City of San Bernardino Housing Element has been certified by the State Department
of Housing and Community Development HCD as in compliance with State laws. This certification
status affirms that the City has evaluated its public policies as potential constraints to the
maintenance, improvement, and development of housing and has adequately addressed all
potential constraints through housing policies and programs.
5.1. aratariums rowth anagement
San Bernardino does not have building moratoriums or growth management plans that limit
housing construction.
5.2
oning and Building Codes
5.2.1
evelapment Cade
Higher density housing reduces land cost on a per-unit basis and thus facilitates the development
of affordable housing. Restrictive zoning that requires unusually large lot and building size can
substantially increase housing costs and can impede housing production.
Page 5-2
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
2006-127
Chapter 5: Public Policies and Programs
The City of San Bemardino General Plan and Development Code provide for a variety of residential
zones. lot sizes. and density levels to facilitate a diverse mix of housing types. Maximum densities
range from 1 unit per acre in the Residential Estate zone RE to 31 units per acre in the High
Density Residential RH zone. The Development Code also provides for a wide range of housing
types. including mobile homes. factory-built housing. second units. group care facilities and senior
housing. For senior housing development in the downtown area can receive a significant density
increase to 150 units per acre pursuant to Housing Element Policy 1.1.3. The City also allows up
to 50 percent increase above the permitted density in all multi-family districts for senior housing.
State legislation mandates the inclusion of mobile home/manufactured housing in a city s land use
policy. Mobile homes on permanent foundation are treated as regular single-family homes and are
permitted in all residential districts where single-family residences are permitted. Mobile home
parks are permitted in all residential zones subject to a Development Permit.
Table 5-1 outlines the development standards by zoning district and correlates zoning with General
Plan designations. The table also describes the types of residential use permitted in each zone.
Table 5-1
Residential one istricts
General Plan
Maximum
Zone Densit
state Residential
RE 1 dulacre
Single Family Residential
Maximum
Hei ht
Minimum Lot
Size
T ieal Residential T e
45 ft.
1 acre
Single family homes on large lots
RL 3.1 du/acre 35 ft. 10.800 sq. ft. Single-family detached homes
RS 4.5 du/acre 35 ft. 7.200 sq. ft. Single-family detached homes
RU-1 8 dulacre 35 ft. 7.200 sq. ft. Single-family detached and attached homes, duplex,
RU-2 8 dulacre 35 ft. 7,200 sq. ft. mobile home parks, senior housing
Low Density Residential
Medium Density Residential
RM 12 dulacre 42 ft. 14.400 sq. ft. Single or low-density multi-family dwellings with one
or more dwellinas on the same lot
RMH 21 du/acre 42 ft. 20.000 sq. ft. Medium high multi-family dwellings
High Density Residential
RH 31 dulacre 56 ft. 20.000 sq. ft. Multi-family dwellings including apartments and
duolexes
Residential Student Housing overlay district located
RSH 20 dulacre 56 ft. 5 acres within 500 feet of California State University San
Bernardino designed to allow student housing
comolexes
Sources: City of San Bernardino Development Code
Notes:
1. Senior Citizen and Senior Congregate Care housing is permitted in the RU, RM, RMH, and RH districts. In the multi-
family districts, the development of senior citizen and senior congregate care housing is permitted at a density up to 50
percent greater than allowed in the district with a marketing feasibility study and conversion plan.
2. Second dwelling units are permitted in all districts except RSH districts subject to a Development Permit.
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page 5-3
2006-127
Chapter 5: Public Policies and Programs
The Development Code also contains provisions to facilitate development of housing for special
needs groups. These include:
. efinition of a Family: A community can potentially restrict access to housing for relations
failing to qualify as family by the definition specified in the zoning ordinance or
development code. For instance, a landiord may refuse to rent to a nontraditional family
based on the zoning definition of a family.' If the definition of family includes a specified
number of unrelated persons in a household, a landlord may also use this as an excuse to
refuse renting to a household with unrelated individuals such as students living together.
California court cases' have ruled that an ordinance that defines a family as: 1 an
individual 2 two or more persons related by blood, marriage or adoption or 3 a group of
not more than a specified number of unrelated persons as a single housekeeping unit, is
invalid. Court rulings stated that defining a family serve no legitimate or useful objective or
purpose recognized under the zoning and land planning power of the jurisdiction, and
therefore violates rights of privacy under the California Constitution. A zoning ordinance
also cannot regulate residency by discriminating between biologically related and unrelated
persons. Furthermore, a zoning provision cannot regulate or enforce the number of
persons constituting a family.
Current, the San Bernardino Development Code defines a family as follows:
An individual, or or more
a grou of not more than
housekee ing unit.
ersons related by blood, marriage or legal ado lion. or
ersons who are not so related living together as a single
However, the City does not apply this definition during approval or review of residential
development. In future updates to the Zoning Ordinance, the City may consider removing
this definition from the Ordinance.
. Community Care Facilities: The Lanterman Developmental Disabilities Services Act Sections
5115 and 5116 of the California elfare and Institutions Code declares that mentally and
physically disabled persons are entitled to live in normal residential surroundings. The use
of property for the care of six or fewer disabled persons is a residential use for the purpose
of zoning. A State-authorized, certified or licensed family care home, foster home, or a
group home serving six or fewer disabled persons or dependent and neglected children on
a 24-hour-a-day basis is considered a residential use that is permitted in all residential zones
for single-family dwellings. No local agency can impose stricter zoning or building and
safety standards on these homes.
The City of San Bernardino Development Code permits day care and 24-hour long-term and
short-term care facilities in CO-l, CO-2, CG-l, CG-2, CG-5, and CR-2 zones subject to the
approval of a Conditional Use Permit. A Conditional Use Permit typically takes four to six
months to process. According to the State California Department of Social Services,
Community Care Licensing Division, there are 112 licensed community care facilities in the
City of San Bernardino, with a total capacity for 1,960 persons Section 2.7. As part of this
AI study, several service providers were interviewed Appendix A. Representatives of
these service providers commented a general perception that development of group homes
for persons with disabilities is often met with animosity.
Most zoning ordinance that define families limit the definition to two or more individuals related by kinship, marriage.
adoption, or other legally recognized custodial relationship.
City of Santa Barbara v. Adamson 1980, City of Chula Vista v Pagard 1981 . among others.
Page 5-4
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
2006-127
Chapter 5: Public Policies and Programs
Second nits: Second units are attached or detached dwelling units that provide complete
independent living facilities for one or more persons including permanent provisions for
living, sleeping, cooking and sanitation. According to the San Bernardino Development
Code, second units are permitted on all lots for single-family use or multiple-family use
which are compatible subject to a Development Permit. Secondary units are only permitted
if the lot has an existing primary residence, the applicant is the owner of the property and
occupant of primary residence and the total area of floor space for the second unit cannot
exceed 30 percent of the existing living area of the main dwelling if the second unit is
attached or 1,200 square feet if the second unit is detached.
Recent changes in State law require that the approval of second units be ministerial if the
applicant meets the City s established conditions and standards. The standards and
conditions cannot be more restrictive than State standards. Current City policy requires a
public hearing for review of the Development Permit application. The City may need to
revise its Development Code to comply with State law.
. ensity Bonuses: The California Government Code Section 65915, as amended, requires
that a local government grant a density bonus and additional incentives, or financially
equivalent incentives to a housing developer who agrees to construct housing that includes
qualified affordable units.
. Par ing Re uirements: The City S parking requirements are presented in Table 5-2 below:
Table 5-2
Par ing Re uirements by ousing Type
Housing Type Spaces Required
Single-Family Residence 2 spaces in enclosed garage
Multi-Family Residence
Studio or '-bedroom 1.5 covered spaces 1 uncovered guest spaceJ5 units
Two-bedroom 2 covered spaces 1 uncovered guest spacel5 units
Three-bedroom or larger 2.5 covered spaces 1 uncovered guest spacel5 units
Mobile Home 2 covered spaces may be tandem 1 uncovered guest
space/unit
Second Unit 1 covered space per bedroom
Senior Apartment 1 covered space 1 uncovered guest spacel5 units
Senior Congregate Care Housing Unit 0.75 covered space
These standards are fairly comparable to parking requirernents in the region. Furthermore,
housing developments that include an affordable housing component, meeting the density
bonus requirements are eligible to use State parking standards that require few parking
spaces.
5,2,2 Infill ousing evelopment
Infill development involves the development or redevelopment of vacant, bypassed, or underutilized
parcels of land as a result of continuing urban development.' Infill housing development conserves
the City s resources of undeveloped land and it often provides lower associated development costs
since the sites are already served by public services and infrastructure. Currently, infill development
is primarily occurring in the southem area of the City. In addition, the City actively pursues
A Glossary of Zoning. Development and Planning Terms. Eds. Michael Davidson and Fay Dolnick. 1999.
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
Page 5-5
2006-127
Chapter 5: Public Policies and Programs
revitalization of the downtown area where additional affordable housing opportunities may be
feasible.
5.2. Building Codes
The City has adopted the State Uniform Building and Housing Codes. These codes are considered
to be the minimum necessary to protect the public health. safety. and welfare. No local
amendment has either been initiated or approved that directly affects housing standards or
processes.
5. Community Representation
5. .1 Planning Commission
The Planning Commission reviews and makes decisions on a variety of land use matters such as
subdivisions. conditional use permits. community plans, design reviews, and variances. The
Commission also reviews and makes recommendations to the City Council on issues pertaining to
the General Plan, Specific Plans. zone changes, annexations, ordinances and policy issues
regarding development. Decisions are reached at public hearings, and residents, business
community members, and concerned citizens are encouraged to attend and participate in the
discussion and decision process.
The Planning Commission may be comprised of up to 11 members there are currently a few
vacancies. Each City Councii member appoints a resident from their ward 7 members, and the
Mayor appoints two members and two alternatives to the Pianning Commission. This process of
appointing Planning Commissioners is typical in California. Furthermore, all meetings are subject to
the Browns Act to protect the public s right to access information.
Page 5-6
CITY OF SAN BERNARDINO
Analysis of Impediments to Fair Housing Choice
t~F~/' .
,'I
;'"':-'1
'1 ~ 6 PH 3: 57
10
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
ASIAN-AMERICAN RESOURCE CENTER
AGREEMENT
This Agreement is entered into this 151 day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Asian-American
Resource Center, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit oflow- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scooe of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Comoensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Thirteen Thousand Dollars ($13,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement. Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference. All
1
Requests for Reimbursement shall be submitted on a monthly basis in accordance with HUD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1112) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Summary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Comoliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record ofthe positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
2
ru-
8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Sununary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-Expendable Propertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HOD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HOD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal Property
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
II. Purchase or Lease of Non-Expendable Property or Eauipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (I) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the SUbrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HOD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
20 I North "E" Street, Suite 30 I
San Bernardino, California 92401
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To the Subrecipient:
Ramsey Sam
Asian-American Resource Center
1115 South "E" Street
San Bernardino, CA 92408
16. Assilmrnent
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
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the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defmed at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place progranunatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indenmification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of $1 ,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations goveming conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgrantees/subcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgrantees/subcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notifY the City and Agency in writing of any change in
the list within fifteen (IS) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
9
e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition of Suoolies and Eauioment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writiog from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reoorts
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Relilrious Proselvtizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
iustitution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate agaiust any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to coustruct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit respousibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written respouse to all conditious or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or iuspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Countemarts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecioient
This Agreement shall not become effective until such time as the Director or hislher
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
IIII
IIII
IIII
IIII
IIII
IIII
IIII
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or hislher designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Asian-American Resource Center
By: /5~ ~
For Asian-American Resource Center
ATTEST:
By: ~j' h. ~
Rachel lark, City Clerk
Approved as to Form:
14
. ,..., ~'5 Ml iO' 27
iV
',' _,:\\10
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
NEW HOUSE, INC.
ICOnnor@ S\Xv- .O~
TABLE OF CONTENTS
OPERATIVE PROViSiONS.........................................................................................................................................1
I. Scope of Services ............................................................................................................................................1
2. Time of Performance ....................................................... .......... ........... ...................................... .....................1
3. Compensation and Method ofPayment...........................................................................................................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affl11lUltive Action ......................................................................................... ......... ................................... ..... 2
6. Discrimination ...................................................................................................................... ...........................2
7. Accounting ....................................... ...... .......... ........ ........................... ............................ ................................2
8. Budget Section ................... .................. ..................... ........... .......... ................................................................. 3
9. Non-Expendable Property ................................................... ........ ................................. ...................................3
10. Expendable Personal Property.........................................................................................................................3
II. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Funding. ...................................... ............ ...................................... ............................. .......... ............. ......4
15. Notices................................................................... ..........................................................................................4
16. Assignment.................................... .......................... ............ ......... .................................. .................................5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ...................................................................................... ............ ................. .... ....................... 6
19. Reversion of Assets .........................................................................................................................................6
20. Fiscal Limitations ................................... .............. ....... ........................ ............................ ................................6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Hann1ess.................................................................................................7
23. Insurance Requirements.. ........................................ ................ ................................... ..................................... 7
24. Conflict of Interest........................................................................................ ......... ........... ............. ..................9
25. Budget Modifications ................................................................................ ........................ ....... ......... ..............9
26. Time of Performance Modifications................... .................................... ........................ .................................9
27. Independent Contractor .................. ................ ................. ............. .................................. ...............................1 0
28. Amendments; Variations............. .................................................. .............................. .......... ........................1 0
29. Purchase and Invoice Deadlines ....................................................................................................................1 0
30. Acquisition of Supplies and Equipment ........................................................................................................1 0
31. Program Monitoring ......................................................................................................................................1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds............................................................................................. .....................................................11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ................ ...................................................................................................... .................... ..................12
36. Counterparts .. ................................... .......... ...................................................................................................13
37. Status of the Subrecipient..............................................................................................................................13
38. Legal Proceedings .........................................................................................................................................13
39. Exhibits............................... ............................................................................ ....... ........................................ 13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project ActivitylDescription
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule ofPayments/Request for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 151 day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and New House, Inc.,
hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HOD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
I. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July I, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Thirteen Thousand Dollars ($13,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2000/2007 CDBG budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement. Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference. All
I
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Requests for Reimbursement shall be submitted on a monthly basis in accordance with HUD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Summary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents ofthe area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-Expendable Propertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal Propertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
II. Purchase or Lease ofNon-Exoendable Propertv or Eauipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (I) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Requirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (IS) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
IS. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
20 I North "E" Street, Suite 30 I
San Bernardino, California 92401
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To the Subrecipient:
Executive Director, Pat Sutay
New House, Inc.
850 North Arrowhead Avenue
San Bernardino, CA 92401
16. Assignment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBa
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBO funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to; Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBO funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBO funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBO funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBO funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place progranunatic or fiscal limitation(s) on CDBO funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shaU any revision made
by the City affect expenditures and legaUy binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise aUowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indenmification. and Hold Harmless
The Subrecipient shaU defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and aU legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shaU satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and aU direct expense
incurred in providing services pursuant to this Agreement and shall assume any and aU
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shaU secure and maintain throughout the term of the Agreement the
foUowing types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive aU rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shaU maintain all California statutory requirements of $ 1,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million DoUars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
8
24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed sub grantees/subcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgrantees/subcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. ACQuisition of Supplies and EQuipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reoorts
By the fifth (Sth) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious Proselytizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counteroarts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecipient
This Agreement shall not become effective until such time as the Director or hislher
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or hislher designee has reviewed and approved the form and
content of each exhibit.
IIII
IIII
IIII
IIII
IIII
IIII
IIII
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
New House, Inc.
V'IA
By: 9- X'~1
For New House, Inc.
ATTEST:
By: ~!.J.~
Rache lark, City Clerk
Approved as to Form:
By: Yr~~
James . Pe an, City Attorney
14
CDBG SUB RECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
SAN BERNARDINO YMCA
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TABLE OF CONTENTS
OPERATIVE PROVISIONS.........................................................................................................................................1
I. Scope of Services ........................................................... .... .......... ........ ...........................................................1
2. Time of Performance ............................................................................................ ...........................................1
3. Compensation and Method ofPayment...........................................................................................................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affirmative Action ............................................ ..................... ..... ................................................................. ...2
6. Discrimination ....................................... ...... .......... ............................................................... ...........................2
7. Accounting .................................... .... ......................................................................... ....................... ..............2
8. Budget Section ..................... ........... ........................................................................ ............................... .........3
9. Non-Expendable Property .............................................. ........................ ......................................................... 3
10. Expendable Personal Property ........................................ .................. ..................... .......................................... 3
II. Purchase or Lease of Non-Expendable Property or Equipment......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ....................................... ........... ...... .............. .............................................4
14. Joint Funding.. ..................................................................... ......... ......... ........ ..... ........................ ... .,. ...... .........4
15. Notices.............................................................................................................................................................4
16. Assignment......................................................................................................................................................5
17. Termination and Termination Costs .......... .................................................................................... .................. 5
18. Program Income ........... .............. .... ........................................................................... .................... ......... ......... 6
19. Reversion of Assets .............. ............ .......................................... ........ ......................................................... .... 6
20. Fiscal Limitations .... ........... ....... ........................................... ....... ............. .......... ............................................. 6
21. Use of Funds for Entertainment, Meals or Gifts.............................................................................................. 7
22. Release, Indenmification, and Hold Hannless.................................................................................................7
23. Insurance Requirements .................................... .................. ...... ........ ............... ............................................... 7
24. Conflict of InteresL................................... ........... ..................... ....................... .............................................. 9
25. Budget Modifications ..................................... ...... .... ....................................................................................... 9
26. Time of Performance Modifications........ ...................................................................................... .................. 9
27. Independent Contractor .......... ..... .................................... ........................................ .... ................. .... ...... ....... 10
28. Amendments; Variations....... ............................................. ........................... .... ..... .... ......... ...... ....................10
29. Purchase and Invoice Deadlines ....................................................................................................................10
30. Acquisition of Supplies and Equipment........................................................................................................10
31. Program Monitoriog ................................. ...... ......... ............ ...... .................... ................................................ 10
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds. .............................................. ................ ................................................................................... II
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits .............................................. ................................ ............................................... ...............................12
36. Counterparts ..................................................................................................................................................13
37. Status of the Subrecipient..................................... ..... ................ ....................... ............................................. 13
38. Legal Proceedings ............................. ..... ...... ............. .................................................................... ................13
39. Exbibits..........................................................................................................................................................13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project ActivitylDescription
Budget Sunnnary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Connnitment
Schedule ofpaymentsiRequest for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and San Bernardino
YMCA, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "1" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavment
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Ten Thousand Dollars ($10,000.00) which the Mayor and Common Council
approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall constitute
full and complete compensation for performance by the Subrecipient of the Services under
this Agreement. Method of payment shall be in the form of a Request for Reimbursement in
accordance with the terms and conditions set forth on Exhibit "6" to this Agreement, a copy
of which is attached hereto and incorporated herein by this reference. All Requests for
1
Reimbursement shall be submitted on a monthly basis in accordance with HUD regulations
"Audit Ready." The Redevelopment Agency of the City of San Bernardino (the "Agency")
on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total allocation
beginning the month of July 2006. Verifiable supporting documentation of expenditures for
services rendered, plus proof of payment all acceptable to the City in the sole discretion of
the City shall be submitted prior to any payment by the City to the Subrecipient. Supporting
statements shall give the total of said monthly expenses and shall also itemize the same in
detail conforming to the Budget Summary set forth on Exhibit "2". After timely receipt of
each supporting statement, the City will draw a warrant within thirty (30) days in favor of the
Subrecipient for the total amount of the Request for Reimbursement approved by the City.
The City will reject and return reimbursement requests not properly and/or completely
submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Sununary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or his/her Designee.
9. Non-Expendable Propertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or his/her designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal Propertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or his/her designee.
II. Purchase or Lease of Non-Expendable Propertv or Equipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (IS) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HOD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 30 I
San Bernardino, California 92401
4
To the Subrecipient:
Darrell Black
San Bernardino YMCA
808 East 21 st Street
San Bernardino, CA 92404
16. Assilmment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of$I,OOO,OOO limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
7
single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
I. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
8
24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgranteeslsubcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition of Supplies and Eauipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reoorts
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious Proselytizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are.to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent fmancial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counterparts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecipient
This Agreement shall not become effective until such time as the Director or hislher
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
IIII
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//II
IIII
IIII
IIII
IIII
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or hislher designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
San Bernardino YMCA
)~ &;:..
By:
For San Bernardino YMCA
ATTEST:
By: ~ /;2, ~
Rache Clark, CIty Clerk
Approved as to Form:
B~j){f/~~~
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In-nnrn .~
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
TIME FOR CHANGE FOUNDATION
TABLE OF CONTENTS
OPERATIVE PROVISIONS.........................................................................................................................................1
I. Scope of Services ... ........................................................ ....................... ...................................................... ....I
2. Time of Performance ....................................... .......................... ......................................................................1
3. Compensation and Method ofPayment...........................................................................................................1
4. Compliance with Laws and Assnrances ..........................................................................................................2
5. Affirmative Action ..........................................................................................................................................2
6. Discrimination ................................................................................................. ................................................2
7. Accounting ....................... ...... ............ .................... ......... ............................. ......................................... .......... 2
8. Badget Section ......... .................................. ................................... ............ ............................. .........................3
9. Non-Expendable Property .............................................. ................. ...... ................................................ ..........3
10. Expendable Personal Property .........................................................................................................................3
11. Pnrchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosnre Requirement ...................................................................................................................4
14. Joint Funding .............................. ............. .......................... ..... ............. ......... ...................................................4
IS. Notices ............................................................. ................... .......... .......... ............................ .............................4
16. Assignment....................................... ...............................................................................................................5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ......................................................................................................... .....................................6
19. Reversion of Assets ...... ................................................................................................................................... 6
20. Fiscal Limitations .................. ................................... ..................................... .......................................... ........6
21. Use of Funds for Entertainment, Meals or Gifts.............................................................................................. 7
22. Release, Indemnification, and Hold Hannless................................................................................................. 7
23. Insnrance Requirements .................... ................................. ............................................ ................................. 7
24. Conflict of Interest.............................................. ....................... .................................. ...................... .............. 9
25. Budget Modifications .......................................... ................................................... ..... ...................... ...... ........ 9
26. Time of Performance Modifications...................................................................... ............................. ........ ..... 9
27. Independent Contractor .................................................................................................................................10
28. Amendments; Variations. ........................... ...................... ...................... ..... ......... ...................... ...... .............1 0
29. Purchase and Invoice Deadlines ....................................................................................................................1 0
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Monitoring ............................................ ....................................................... ...................................1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds......................................................................................... .........................................................11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ............................................................. .................................................................. .............................12
36. Counterparts ..................................................................................................................................................13
37. Status of the Subrecipient ..............................................................................................................................13
38. Legal Proceedings .........................................................................................................................................13
39. Exhibits........................................................................................................... ............................................... 13
EXHffiIT I
EXHmIT 2
EXHIBIT 3
EXHffiIT 4
EXHffiIT 5
EXHIBIT 6
EXHmIT 7
EXHmIT 8
EXHIBIT 9
Project ActivitylDescription
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule ofPaymentslRequest for Reimbursement Ouly
Insnrance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 151 day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Time for Change
Foundation, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality oflife of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit oflow- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
I. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Ten Thousand Dollars ($10,000.00) which the Mayor and Common Council
approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall constitute
full and complete compensation for performance by the Subrecipient of the Services under
this Agreement. Method of payment shall be in the form of a Request for Reimbursement in
accordance with the terms and conditions set forth on Exhibit "6" to this Agreement, a copy
of which is attached hereto and incorporated herein by this reference. All Requests for
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Reimbursement shall be submitted on a monthly basis in accordance with HUD regulations
"Audit Ready." The Redevelopment Agency of the City of San Bernardino (the "Agency")
on behalf of the City, will reimburse the Subrecipient one-twelfth (1112) of total allocation
beginning the month of July 2006. Verifiable supporting documentation of expenditures for
services rendered, plus proof of payment all acceptable to the City in the sole discretion of
the City shall be submitted prior to any payment by the City to the Subrecipient. Supporting
statements shall give the total of said monthly expenses and shall also itemize the same in
detail conforming to the Budget Summary set forth on Exhibit "2". After timely receipt of
each supporting statement, the City will draw a warrant within thirty (30) days in favor of the
Subrecipient for the total amount of the Request for Reimbursement approved by the City.
The City will reject and return reimbursement requests not properly and/or completely
submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or his/her Designee.
9. Non-ExDendable ProDertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or his/her designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. EXDendable Personal ProDertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or his/her designee.
II. Purchase or Lease of Non-Ex Den dab Ie ProDertv or EauiDment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (I) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (IS) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HOD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
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To the Subrecipient:
Kim Carter
Time for Change Foundation
P.O. Box 5753
San Bernardino, CA 92412
16. AssilDUllent
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
,---------------------
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertaimnent. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertaimnent, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of $1 ,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
I. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgranteeslsubcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acquisition of Supplies and Equipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
3 I. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
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accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient wiJI permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee wiJI conduct periodic program progress reviews. These reviews wiJI focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reoorts
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious ProseIvtizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement wiJI be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title 1 of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
11
a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (1) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counteroarts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecioient
This Agreement shall not become effective until such time as the Director or hislher
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
IIII
IIII
IIII
//II
IIII
IIII
IIII
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or hislher designee has reviewed and approved the form and
content of each exhibit.
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~
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Time for Change Foundation
By:
ATTEST:
BY:~ /.J.~
Rache lark, City Clerk
Approved as to Form:
14
ESG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
TIME FOR CHANGE FOUNDATION
AGREEMENT FOR USE OF EMERGENCY SHELTER GRANT FUNDS
THIS AGREEMENT, entered in this 1st day of July, 2006 by and between the CITY OF SAN
BERNARDINO, (hereinafter referred to as the "CITY") and Time For Change Foundation, a
California non-profit corporation, (hereinafter referred to as the "SUB RECIPIENT");
WITNESSETH
WHEREAS, pursuant to Subtitle "B" of the Stewart B. McKinney Homeless Assistance Act
of 1987 (Public Law 100-77), (hereinafter referred to as the "Act"), the CITY has been awarded
Emergency Shelter Grant Program ("ESGP") funds which are to be used to improve the quality of
existing emergency shelters for the homeless, to help make available additional emergency shelters,
and to help meet the costs of operating emergency shelters and of providing certain essential social
services to homeless individuals, and;
WHEREAS, the CITY desires to contract with non-profit corporations for the use of ESGP
funds to provide various services for homeless individuals, and;
WHEREAS, the SUBRECIPIENT as a non-profit corporation, is eligible under the Act to
receive ESGP funds to provide those services as described herein.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
1. Term.
The term of this Agreement shall be for a period commencing on July I, 2006, and
terminating on June 30, 2007, or as otherwise provided for in Section 5 herein.
2. Scope of Services.
The SUBRECIPIENT promises and agrees to provide certain emergency shelter grant
program services for homeless persons by utilizing the sum of Eight Thousand Dollars
($8,000.00) in ESGP funds, as set forth in the manner provided in Exhibit "A" which is
attached hereto, and by this reference, incorporated herein. The SUBRECIPIENT shall also
provide homeless individuals with assistance in obtaining (i) appropriate supportive services,
including permanent housing, physical and mental health treatment, counseling, supervision,
and other services essential for achieving independent living, and; (ii) other federal, state,
local and private assistance provided hereunder shall be in full conformity with the Act, and
any amendments thereto, and the federal regulations and guidelines now, or hereinafter
enacted pursuant to the Act.
3. Matchinl! Funds.
The SUBRECIPIENT must supplement its emergency shelter grant amounts with an equal
amount of funds from sources other than those provided herein and from non-federal sources.
These funds must be provided after the date of the grant award to the SUBRECIPIENT. The
SUBRECIPIENT may comply with this requirement by providing the supplemental funds
itself, or voluntary efforts or gifts in kind provided to the SUBRECIPIENT, as appropriate.
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4. Calculatinl! the Matchinl! Amount.
In calculating the amount of supplemental funds, there may be included the value of any
donated material or building(s), the value of the lease(s) on the building(s); any salary paid to
staff of the SUBRECIPIENT, or to any State or non-profit recipient, as appropriate, in
carrying out the Emergency Shelter Grant Program; and the time and services contributed by
volunteers to carry out the ESGP, determined at the rate of $5.00 per hour. For purposes of
this Section 4, the SUBRECIPIENT upon concurrence of the Executive Director (the
"Administrator") of the Redevelopment Agency of the City of San Bernardino ("Agency"),
the Administrator of the ESG Program, will determine the value of any donated material or
building(s) or any lease(s), or furnishings and equipment using any method reasonably
calculated to establish a fair market value.
5. Termination.
(a) Either party may terminate this Agreement upon thirty (30) days prior written notice to
the other party.
(b) Notwithstanding the provisions of Section 5(a), the CITY may suspend or terminate
this Agreement forthwith for cause, upon written notice to the SUBRECIPIENT of the
action being taken. Cause shall be established, (i) in the event the SUBRECIPIENT
fails to perform the covenants herein contained; (ii) in the event there is a conflict with
any federal, state or local law, ordinance, regulation or rule rendering any of the
provisions of this Agreement invalid or untenable, or; (iii) in the event the funding
from the United States Department of Housing and Urban Development (HOD),
referred to in the recitals herein, is reduced, terminated or otherwise becomes
unavailable. The CITY shall provide written notice to the SUBRECIPIENT within ten
(10) working days from the date HUD reduces, suspends or terminates the ESGP
funding. This Agreement may, at the discretion of the Administrator of the CITY, be
either terminated or amended to reflect said reduction of funds.
(c) Upon termination of this Agreement, the SUBRECIPIENT agrees to return any
unencumbered funds which it has been provided by the CITY. In accepting said
funds, the CITY does not waive any claim or cause of action it may have against the
SUBRECIPIENT for breach of this Agreement.
(d) Upon termination of this Agreement, the SUBRECIPIENT shall not mcur any
obligations after the effective date of such termination.
(e) Any provisions for inspection and audits relative to the expenditure of funds provided
for hereunder shall not be ended upon the date of any termination but shall continue
thereafter as specified herein.
(f) SUBRECIPIENT will be required to cooperate and work in collaboration with City
departments, to include but not limited to: Police Department, Fire Department and
Code Compliance and the Agency in an effort to promote the well-being of citizens
and aid in reduction of crime, blight and unsafe living conditions. From time to time,
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SUBRECIPmNT may be required to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 5. Termination. of this Agreement.
6. Pavment of Funds.
The Mayor and Common Council of the CITY shall determine the fmal disposition and
distribution of all funds received by the CITY under the Act. On behalf of the CITY, the
Agency shall make payments of ESGP funds to the SUBRECIPmNT for the purposes set
forth in Exhibit "A" and shall monitor the expenditure of funds and activities of the
SUBRECIPIENT to ensure compliance with applicable federal regulations and the terms of
this Agreement. The SUBRECIPmNT shall establish and maintain a separate account for all
ESGP funds received under this Agreement and deposit all such funds in said account.
All disbursements of ESGP funds by the Agency will be made in the following manner:
(a) Payments shall be made on a reimbursement basis and made within thirty (30) days
after the SUBRECIPIENT has submitted written notice identifying payments made
and requesting reimbursement. Payments shall be based on documented expenses by
the SUBRECIPIENT, for the purposes set forth in Exhibit "B" approved by the
Administrator, or his/her designee. The Agency shall reimburse on a monthly basis,
1/12 of the SUBRECIPIENT's ESOP funds.
(b) In no event shall the CITY or the Agency, or any of its officers, agents or employees,
be held liable for expenses incurred by the SUBRECIPmNT in excess of the ESGP
allocation noted in Section 2, entitled "Scope of Services."
(c) Payments may be withheld if, on a determination by the Administrator, the
SUBRECIPIENT has not complied with the covenants herein contained at such times,
and in such manner as provided in this Agreement.
(d) No later than thirty (30) days prior to the date set forth herein for termination of this
Agreement, the SUBRECIPmNT shall provide the CITY or Agency with its estimate
of the amount of funds which will remain unexpended upon such termination.
Notwithstanding any provisions contained in this Section 6, the Agency, through its
Administrator, shall thereafter, upon reasonable notice provide to the SUBRECIPIENT, have
the right to (i) reduce the payment of funds hereunder, (ii) renegotiate the actual levels of
expenditures in the event the SUBRECIPIENT's rate of expenditures will result in
unexpended funds at the expiration of this Agreement, and/or; (iii) re-program funds
associated with this Agreement in which the Administrator finds there has been no substantial
progress or activity.
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7. Documentation. Renorts. Inspections and Performance Evaluations.
(a) Documentation of EXDenditures. All expenditures supported by properly executed
payrolls, time records, invoices, contracts, vouchers, receipts, orders and any other
accounting documentation pertaining, in whole or in part, to this Agreement, shall be
clearly identified and readily accessible. The SUBRECIPIENT shall maintain and
keep available all such documents for a period of not less than three (3) years from the
termination of this Agreement, if a CITY, Agency, state and/or federal audit has
occurred within six (6) months prior to date of termination, and for a period of not less
than five (5) years from said date if such audit has not occurred. In the event of audit
exception, such documentation shall be maintained until every exception has been
cleared to the satisfaction of the auditing authority.
(b) Renorts. The SUBRECIPIENT, at such times and on such forms as the Agency may
require, shall furnish the Agency such statements, records, reports, data and
information as the Agency may request pertaining to its performance of services
hereunder and other matters covered by this Agreement. The SUBRECIPIENT shall
establish and maintain records in accordance with the Office of Management and
Budget (OMB) Circulars Numbered A-1l0 and A-1l2, respectively, as applicable to
the acceptance and use of emergency shelter grants.
(c) InsDections. The SUBRECIPIENT shall make available to the CITY and/or Agency,
state and/or federal officials its records and data with respect to all matters covered by
this Agreement for inspection and audit, which inspection and audit may be made at
any time after reasonable notice. The SUBRECIPIENT shall comply with the audit
requirements of OMB Circular Number A-II 0, as applicable, and as they relate to the
acceptance and use of federal funds under this Agreement.
(d) Performance Evaluations. The SUBRECIPIENT shall permit CITY and/or Agency,
state and/or federal officials to monitor, assess or evaluate the SUBRECIPIENT's
performance under this Agreement on at least a monthly basis, said monitoring,
assessment or evaluation to include, but not be limited to, audits, inventory,
inspections within the program area, and interviews with the SUBRECIPIENT's
employees, agents, independent contractors and subcontractors, providing the services
under this Agreement and recipients thereof.
(e) This Agreement contemplates that the SUBRECIPIENT will pay salaries, utilities and
furnishings with the monies provided in accordance with Exhibit "B" and Section 2
Scope of Services, of this Agreement.
8. Duildin!!: or Facilitv.
(a) Any building for which emergency shelter grant amounts are used for renovation,
conversion, or major rehabilitation, must meet local safety and sanitation standards.
(b) When ESGP funds are utilized to provide emergency shelter for the homeless in hotels
or motels or other commercial facilities providing transient housing, (i) the
SUBRECIPIENT, at the request of the CITY and/or Agency, shall execute an
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P:IfonuIIIoaiqF~FonuI:z006-2007I2OO6-2007ESO~Mcqe_
Agreement with the provider of such housing which provides that comparable living
space, in terms of quality, available in the facility for use as emergency shelters for at
least the same period of time as provided in Section 9 herein, and; (ii) leases
negotiated between the SUBRECIPIENT and the provider of such housing shall make
available such living space at substantially less than the daily room rate otherwise
charged by the facility and; (iii) the SUBRECIPIENT shall certify, in writing, to CITY
and/or Agency that it has considered using other facilities as emergency shelter for the
homeless in the City.
(c) The SUBRECIPIENT shall ensure that any building or facility is utilized exclusively
for secular purposes and is made available to all person regardless of religion. If
ESGP funds are used to renovate, rehabilitate, or convert buildings owned by
primarily religious organization or entities, the SUBRECIPIENT shall comply with
the provisions ofTitle 24, Code of Federal Regulations, Part 575.21(b)(2).
(d) The SUBRECIPIENT shall comply with the Uniform Federal Accessibility Standards
(24 CFR, Part 40, Appendix "A"), when activities funded by the ESGP involve major
rehabilitation or conversion.
9. Maintenance as a Homeless Facility.
(a) The SUBRECIPIENT shall maintain any building for which ESGP funds are used for
not less than a three (3) year period, or for not less than a ten (10) year period if the
grant amounts are used for major rehabilitation or conversion of the building.
(b) The three (3) or ten (10) year periods begin to run, (i) on the date of initial occupancy
as an emergency shelter for the homeless when the building utilized was not operated
as an emergency shelter for the homeless before receiving ESGP funds, or; (ii) on the
date that ESGP funds are first obligated to the shelter when the building was operated
as an emergency shelter before receiving ESGP funds, or; (ii) on the date that ESGP
funds are first obligated to shelter when the building was operated as an emergency
shelter before receiving ESGP funds.
(c) When ESGP funds are used exclusively to provide essential services including, but not
limited to, services concerned with employment, physical or mental health, substance
abuse, education, food, equipment or furnishings, the time periods noted in (a) above
are not applicable.
10. Independent Capacity.
The SUBRECIPIENT, and its officers, employees and agents, shall act in an independent
capacity during the term of this Agreement and shall not act as, shall not be, nor shall they in
any manner be construed to be officers, employees, or agents of the CITY and/or the Agency
or the State of California.
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11. Assilmabilitv.
The SUBRECIPIENT C3IUlot assign any of its rights, duties or obligations pursuant to this
Agreement to any person or entity without the prior written consent of the CITY or the
Agency. This includes the ability to subcontract all, or a portion of, its rights, duties and
obligations hereunder.
12. Insurance.
The SUBRECIPIENT shall during the term of this Agreement:
(a) Procure and maintain Workers' Compensation Insurance as prescribed by the laws of
the State of California.
(b) Procure and maintain comprehensive general and automobile liability insurance as
shall protect the SUBRECIPIENT from claims for damages for personal injury,
including accidental and wrongful death, as well as from claims for property damage,
which may arise from activities or programs under this Agreement, whether such
activities or programs by the SUBRECIPIENT, by any subcontractor or by any
officer, employee or agent of either of them.
Such insurance shall name the CITY and the Agency, their officers, officials,
attorneys, agents, employees, volunteers and independent contractors as additional
insureds with respect to this Agreement and the obligations of the SUBRECIPIENT
hereunder. Such insurance shall provide for combined coverage limits of not less than
$1,000,000 per occurrence.
(c) Furnish the CITY and the Agency with policies of insurance, prior to request for first
reimbursement for ESGP funds showing that such insurance is in full force and effect,
and that the CITY and the Agency are named as additional insureds with respect to
this Agreement and the obligations of the SUBRECIPIENT hereunder. Further, said
policies shall contain the covenant of the insurance carrier that thirty (30) days written
notice will be given to the CITY and the Agency prior to modification, cancellation, or
reduction in coverage of such insurance.
13. Hold Harmless.
The SUBRECIPIENT shall indemnify and hold the CITY and the Agency, their officers,
officials, attorneys, agents, employees, volunteers and independent contractors free and
harmless from any liability whatsoever, including wrongful death, based or asserted upon any
act or omission of the SUBRECIPIENT, its officers, agents, employees and independent
contractors in any legal action based upon such alleged acts or omissions. The specific
insurance coverage required in Section 12 shall in no way limit or circumscribe the
SUBRECIPIENT'S obligation to indenmify and hold the CITY and the Agency harmless as
set forth in this Section 13.
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14. Federal Reauirement.
(a) The SUBRECIPIENT shall comply with the proVISIOns of the Act, and any
amendments thereto, and the federal regulations and guidelines now or hereinafter
enacted pursuant to the Act. More particularly, the SUBRECIPIENT is to comply
with those regulations found in Part 575 of Title 24 of the Code of Federal Regulations
and OMB Circulars Numbered A-110 and A-1l2, respectively, and appropriate
attaclunents for non-profit organization contractors.
(b) The SUBRECIPIENT represents that it is, or may be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by, or in connection with, a religious or denominational
institution or organization.
(c) The SUBRECIPIENT agrees that, in connection with the services to be provided
hereunder, (i) it will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or give preference
in employment to persons on the basis of religion; (ii) it will not discriminate against
any person applying for such services on the basis of religion and will not limit such
services or give preference to persons on the basis of religion; (iii) it will provide no
religious instruction or counseling, conduct no religious workshop or services, engage
in no religious proselytizing and exert no other religious influence in the provision of
such services; (iv) the portion of a facility used to provide services assisted, in whole
or in part, under this Agreement shall contain no sectarian or religious symbols or
decorations, and; (v) the funds received under this Agreement shall not be used to
construct, rehabilitate, or restore any facility which is owned by the SUBRECIPIENT
in which the services are to be provided; provided that, minor repairs may be made if
such repairs are directly related to the services; are located in a structure used
exclusively for non-religious purposes, and; constitute in dollar terms only a minor
portion ofthe ESGP expenditure for the public services.
(d) The SUBRECIPIENT shall comply with the Housing and Community Development
Act (HCD Act) of 1992 (Public Law 102-550, approved October 28, 1992), which
requires the involvement of, to the extent practicable, homeless individuals and
families and operating facilities assisted under the ESGP in providing services for
occupants of these facilities (42 D.S.C. 1 1375(c)(7), as added by Section 1402 (b)).
(e) The SUBRECIPIENT shall comply with HCD Act, Section 1402 (d), which requires
that termination of assistance to any individual or family be in accordance with a
formal process, which may include a hearing, established by the SUBRECIPIENT.
15. Compliance with Law.
The SUBRECIPIENT shall comply with all federal, state and local laws and regulations
pertinent to its operation and services to be performed hereunder, and shall keep in effect any
and all licenses, permits, notices and certificates as are required thereby. The
SUBRECIPIENT shall further comply with all laws applicable to wages and hours of
employment, occupational safety and to fire safety, health and sanitation.
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16. Comvrehensive Homeless Assistance Plan.
The SUBRECIPIENT shall cooperate with the CITY and the Agency in undertaking
emergency shelter grant activities and shall assist the CITY and the Agency in carrying out
the Comprehensive Homeless Assistance Plan and any other applicable strategies
implemented by the CITY and the Agency and shall act in conformity therewith.
17. Non-Discrimination and Eaual O~vortunitv Comvliance.
The SUBRECIPIENT hereby certifies compliance with the following:
(a) Executive Order Number 11246, as amended, and the regulations issued thereunder at
Title 41, Code of Federal Regulations, Chapter 60;
(b) Title VI and Title VII of the Civil Rights Act of 1964 (423 D.S.C. Section 2000(d) et.
seq.), as amended by the Equal Opportunity Act of March 24, 1972, (Public Law
Number 92-261);
(c) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Sections 3601-3619) and
implementing regulations issued pursuant thereto (24 CFR, Part I);
(d) Executive Order Number 11063 and implementing regulations issued pursuant thereto
(25 CFR, Part 107);
(e) Age Discrimination Act of 1975 (42 U.S.C., Sections 6101-6107);
(t) Section 504 ofthe Rehabilitation Act of 1973 (29 D.S.C., Section 794), and;
(g) Executive Orders Numbered 11625, 12432 and 12138 consistent with HUD's
responsibilities under these Orders, the SUBRECIPIENT must make efforts to
encourage the use of minority and women owned business enterprises in connection
with ESGP activities;
(h) The SUBRECIPIENT shall establish and maintain a procedure through which
homeless individuals will be informed of the facilities and services available to all on
a nondiscriminatory basis.
(i) SUBRECIPIENT agrees to abide by, and include in any subcontracts to perform work
under this Agreement, the following clause:
"During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors shall not unlawfully discriminate against any employee or application
for employment because of race, religion, color, national origin, ancestry, physical
handicap, medical condition, marital status, age (over 40), or sex. The
SUBRECIPIENT and subcontractors shall ensure that the evaluation and treatment of
their employees and applications for employment are free of such discrimination.
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The SUBRECIPIENT and subcontractors shall comply with the provisions of the Fair
Employment and Housing Act (Government Code, Section 12900 et. seq.). The
applicable regulations of the Fair Employment and Housing Commission
implementing Government Code Section 12990, set forth in Chapter five (5) of
Division four (4) of Title two (2) of the California Administrative Code are
incorporated into this Agreement by reference and made a part hereof as if fully set
forth at length.
The SUBRECIPIENT and its subcontractors shall give written notice of their
obligations under this clause to labor organizations with which they have collective
bargaining or other agreement."
(j) The equal opportunity clause continued in Section 202 of Executive Order Number
11246, as amended, is hereby incorporated into this Agreement by this reference.
(k) During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors, if any, shall not deny the benefits rendered hereunder to any person on
the basis of religion, color, ethnic group identification, sex, age or physical or mental
disability.
(I) The SUBRECIPIENT shall furnish all information and reports as required by
Executive Order Number 11246, as amended.
(m) The SUBRECIPIENT shall include the non-discrimination and compliance provisions
of the equal opportunity clause in all subcontracts, if any.
18. Affirmative Action Comnliance.
Each SUBRECIPIENT or subcontractor with less than fifty (50) employees shall comply with
Section 202, Part II, of Executive Order Number 11246, as amended. The SUBRECIPIENT
shall ensure that subcontractors, if any, falling within the scope of this provision shall comply
in full with the requirements thereof
19. Conflict ofInterest.
No person who is (i) an employee, agent, consultant, officer, or elected or appointed official
of the CITY, the Agency, state or the SUBRECIPIENT that receives ESOP funds and who
exercises or has exercised any functions or responsibilities with respect to assisted activities,
or; (ii) in a position to participate in a decision making process or gain inside information with
regard to such activities, may obtain a personal or financial interest or benefit from the
activity, or have an interest in any contract, subcontract or agreement with respect thereto, or
the proceeds thereunder, either for himself or herself or those with whom he or she has family
or business ties, during his or her tenure or for one (I) year thereafter.
20. Elieibilitv of Contractors and Subcontractors.
No ESOP funds allocated to the SUBRECIPIENT through this Agreement may be used,
directly or indirectly, to employ, award contracts to, or otherwise engage the services of, or
9
';~I~f0nM\J006-2007\2006-2OO1ESO~Mqe.doc
purchase the goods of, or fund any contractor or subcontractor during any period of
debarment, suspension, or placement in ineligibility status under the provision of 24 CFR,
Part 4.
21. Lead Based Paint.
The SUBRECIPIENT and all subcontractors, if any, shall comply with the requirements, as
applicable, of the Lead-Based Paint Poisoning Prevention Act (42 D.S.C., Section 4821-4846)
and implementing regulations issued pursuant thereto (24 CFR, Part 35).
22. Flood Insurance.
No site proposed on which renovation, major rehabilitation, or conversion of a building, is to
be assisted under this part, other than by grant amounts allocated to the state, may be located
in an area that has been identified by the Federal Emergency Management Agency as having
special flood hazards, unless the community in which the areas is situated is participating in
the National Flood Insurance Program and the regulations issued thereunder (44 CFR, Parts
59-79) or less than a year has passed since the Federal Emergency Management Agency
notification regarding such hazards, and the SUBRECIPIENT will ensure that flood insurance
on the structure is obtained in compliance with Section 102(a) of the Flood Disaster
Protection Act of 1973, (42 D.S.C., Section 4001 et. seq.).
23. Notice.
Any notices required or desired to be served by either party upon the other shall be addressed
to respective parties as set forth below (or to such other addresses as from time to time may be
designated, in writing, by the respective parties):
AS TO AGENCY:
AS TO SUBRECIPIENT:
Maggie Pacheco, Executive Director
Economic Development Agency
201 North "E" Street, Suite 301
San Bernardino CA 92401-1507
Kim Carter, Executive Director
Time For Change Foundation
P.O. Box 5753
San Bernardino, CA 92412
24. Bindinl! Successors.
The SUBRECIPIENT, its heirs, assigns and successors in interest shall be bound by all the
provisions contained in this Agreement, and all of the parties thereto shall be jointly and
severally liable hereunder.
25. Assurances.
The SUBRECIPIENT certifies that it has the legal authority to enter into and meet the
requirements of this Agreement.
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26. Lel!al Proceedinl!s.
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this Agreement between the parties it should be filed in San Bernardino County
Superior Court. The prevailing party shall be entitled to recover its reasonable legal fees.
The costs, salary and expenses of the City Attorney and members of his office in enforcing
this Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this section.
27. Entire Al!reement.
This Agreement is intended by the parties hereto as the final and exclusive expression of these
provisions contained in this Agreement and it supersedes and replaces any and all prior and
contemporaneous agreements and understandings, oral or written, in connection therewith.
This Agreement may be modified or changed only upon the written consent of the parties
hereto.
28. No Third Party Beneficiaries.
IIII
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No third party shall be deemed to have any rights hereunder against any of the parties hereto
as a result of this Agreement.
P:~l'<lnaasGl'onu\2OO6-2OO~2007ESClAar-_Melp_
11
IN WITNESS WHEREOF, the parties hereto have hereunto their hands and seals this day and
year first above written.
CITY OF SAN BERNARDINO
Time For01angeFourxIaticn
a California non-profit corporation
~~<~
Patri 1. Mo . s, Mayor
ATTEST
~~
Ex tive Director
City of San Bernardino
~h.~
Rachel lark, City Clerk
Approved as to Form:
Jmnf!~~!IjPh;;V
12
~~fonuIESGI'omJ\2OO6.20lJ7\2006.2OO1ESO~Mcrp.doI;
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
AL-SHIFA CLINIC, INC.
TABLE OF CONTENTS
OPERATIVE PROVISIONS.........................................................................................................................................1
I. Scope of Services ............................................................................................................................................1
2. Time of Performance ............................................................................................. ...................................... ...~ I
3. Compensation and Method of Payment.............................................................................................. .............1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affrrmative Action ......................................................................... ..................................... ............................2
6. Discrirnination.................................................................................................................................................2
7. Accounting ......................................................................................................................................................2
8. Budget Section ................................................................................................................................................3
9. Non-Expendable Property ............................................ ................................. ......... .........................................3
10. Expendable Personal Property ................... ..... ...................................... .......... .............................................. ...3
II. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ..................................... ..............................................................................4
14. Joint Funding ............. ..................................................................... .................................................................4
IS. Notices .............................................................................................................................................................4
16. Assignment ................................ ......................................................................................................................5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income .................... ..........................................................................................................................6
19. Reversion of Assets .........................................................................................................................................6
20. Fiscal Limitations ........ .................................... ............... ............ ....................................... .............................. 6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Hannless................................................................................................. 7
23. Insurance Requirements .......................................................... ...................................... .................................. 7
24. Conflict of Interesl....................... .................................................................................................................... 9
25. Bndget Modifications ........... ..... ...................................................................................................................... 9
26. Time of Performance Modifications.................................................................. .............................................. 9
27. Iudependent Contractor ..... .................... ...... ....... ........................................ ........ ...........................................1 0
28. Amendments; Variations ............................. ...... ............................... ....... ......................... ............ .................1 0
29. Purchase and Invoice Deadlines ....................................................................................................................10
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Monitoring ....................... ...............................................................................................................I 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds............................................................................................ ......................................................11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ............................................................................................................................................................12
36. Counterparts ..................................................................................................................................................13
37. Status of the Subrecipient .................................................................................. ............................................13
38. Legal Proceedings .........................................................................................................................................13
39. Exhibits.......................................................................................... ............................... ...................... ...........13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project ActivitynJescription
Budget Sununary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule of PaymentslRequest for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and AI-Shifa Clinic, Inc.,
hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scooe of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July I, 2006, and shall be completed
no later than June 30, 2007.
3. Comoensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Fourteen Thousand Dollars ($14,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement. Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference. All
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Requests for Reimbursement shall be submitted on a monthly basis in accordance with HUD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Summary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-Expendable Propertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (1) year and an acquisition cost of 'Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal Propertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of 'Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
11. Purchase or Lease of Non-Expendable Propertv or Eauipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over 'Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
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To the Subrecipient:
Sahibzada Muzafaruddin
AI-Shifa Clinic, Inc.
2034-B Mallory Street
San Bernardino, CA 92407
16. Assilmment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or his/her designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Prol!Tam Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place progranunatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indenmification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indenmify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, ilIness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of $1 ,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating of B+ VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgranteeslsubcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notity the City and Agency in writing of any change in
the list within fifteen (IS) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition ofSuDDlies and EauiDment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reoorts
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious ProseIvtizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
11
a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis ofreligion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counteroarts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status ofthe Subrecioient
This Agreement shall not become effective until such time as the Director or hislher
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defmed in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
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The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or hislher designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
ATTEST:
By:~h~
Rach Clark, City Clerk
Approved as to Form:
By: ~#ao'6~
James F. P an, City Attorney
SUBRECIPIENT
AI-Shifa Clinic, Inc.
By ,k
For AI-Shifa Clinic, Inc.
(Mohammad Aslam, MD.)
Medical Director,
Board of Directors,
Al-Shifa Clinic Inc.
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CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
ASSISTANCE LEAGUE OF SAN BERNARDINO
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TABLE OF CONTENTS
OPERATIVE PROVISIONS.........................................................................................................................................1
1. Scope of Services ................................................. ............................... ................................... ............ .............1
2. Time of Performance .......................................... ..................... ........................................................................ 1
3. Compensation and Method ofPayment...........................................................................................................1
4. Compliance witb Laws and Assurances ..........................................................................................................2
5. Affinnative Action ... ........................... ................................. ....... ............... ............... ................................... ...2
6. Discrirnination.................................................................................................................................................2
7. Accounting ......... ............................ .................................................. ...............................................................2
8. Budget Section ... ............................................. ................................... .................................... ......... ................3
9. Non-Expendable Property ... .... ...................... ........................................ ............ ..............................................3
10. Expendable Personal Property .................... ....... ................................... ...........................................................3
11. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ......... ...................... .................. ............. ... ..................................................4
14. Joint Funding .............................................................. ................... .............. ......................................... ...........4
15. Notices................ ............................... ............................................... ............ ............................ .......................4
16. Assignment......................................................................................................................................................5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ............ ........................................................ .............. .................... ........................................ 6
19. Reversion of Assets ............................... ................................... ............... ........................................................6
20. Fiscal Limitations .................................... .......................... ..... ...... .............. .................. ..... ..... ......................... 6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Harmless................................................................................................. 7
23. Insurance Requirements ................................. ......... ........................... ............... .... ............................. ............. 7
24. Conflict of Interest... .... ..................... .............. ...... ........ .................. ..... ............. ... ............................ ................ 9
25. Bndget Modifications ... ........... ......................................................................... .... ........................................... 9
26. Time of Performance Modifications................... ................................. .... ................... ..................................... 9
27. Independent Contractor ................................. ......... .................. .............. ..................... ..................................1 0
28. Amendments; Variations ............................... ........................... ................ ..................... ...... ..........................1 0
29. Purchase and Invoice Deadlines ....................................................................................................................10
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Mouitoring ......................................................................................................................................1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds ........................................... ..................... .................... ........... ........ ................ ............... ............11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ............................................................................................................................................................12
36. Counterparts ..................................................................................................................................................13
37. Status of the Subrecipient....... ...... .................... .............................................................................................13
38. Legal Proceedings ................................................. ............................. ................ ...........................................13
39. Exhibits............................................................................................... ...........................................................13
EXHIBIT 1
EXHlBIT2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project Activity/Description
Budget Sununary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Scbedule ofPaymentslRequest for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Assistance League of
San Bernardino, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
BUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit ofJow- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. ScoDe of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "1" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. ComDensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Thirteen Thousand Dollars ($13,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement. Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference. All
1
Requests for Reimbursement shall be submitted on a monthly basis in accordance with HUD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1112) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Summary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Comoliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Sub recipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
2
8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-Exoendable Prooertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HOO CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Exoendable Personal Prooertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
II. Purchase or Lease of Non-Exoendable Prooertv or Eauioment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (I) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
3
Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (IS) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
IS. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 9240 I
4
1-
To the Subrecipient:
Maria Kramer
Assistance League of San Bernardino
560 West 6th Street
San Bernardino, CA 92410
16. Assilmment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or his/her designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) ofthis Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place progranunatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indenmification. and Hold Hannless
The Subrecipient shall defend (if requested by the City and the Agency), release, indenmify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, hannless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of$I,OOO,OOO limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
7
single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
I. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum ofthree, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgranteeslsubcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acquisition of Supplies and Equipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
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accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reports
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "1"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious Proselvtizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title 1 of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (1) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBO expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counteroarts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status ofthe Subrecioient
This Agreement shall not become effective until such time as the Director or his/her
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notifY the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Beroardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or his/her designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Assistance League of San Bernardino
rris,
ernardino
ATTEST:
By:~h~.
Rach I Clark, City Clerk
Approved as to Form:
14
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CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
CHILDREN'S FUND
TABLE OF CONTENTS
OPERATIVE PROVISiONS.........................................................................................................................................1
I. Scope of Services ................ .................................................................................. ....................................... ...1
2. Time of Performance .......................................................................................................................................1
3. Compensation and Method ofPayment...........................................................................................................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Atlirmative Action ..........................................................................................................................................2
6. Discrimination ....................... ..........................................................................................................................2
7. Accounting ........................... .............................. ........ ......... ............ ............................... .................................2
8. Budget Section ............ ............................... .................... .............................................. ...................................3
9. Non-Expendable Property ..................... ...................................................... ........ ............................................3
10. Expendable Personal Property .................................................................. ................................ .......................3
II. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Funding ...................... ......................... ........................... ................................ ..... ....................................4
IS. Notices.......................... ............................ ............................................................. ..........................................4
16. Assignrnent................. .......................................................................................... ...........................................5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income .................................................................................... ...................................... .................... 6
19. Reversion of Assets ............. .................................. ..... ..... .......... .................................. ....................................6
20. Fiscal Limitations ............ ............................. ................. ................................................ .................................. 6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Harrnless.................................................................................................7
23. Insurance Requirements .................................................................................................................................. 7
24. Conflict of Interest..................... ....... .......................................... .......... ............................... ............................9
25. Budget Modifications ............ ........ ........... ................ ............................ ........................ ............................... ....9
26. Time of Performance Modifications................... .......................... ...... ........................... ..................................9
27. Independent Contractor ................................. ............................. ................... .............. .................. ................1 0
28. Amendments; Variations ..................... ................................. .................... ................ ................ ............... ......I 0
29. Purchase and Invoice Deadlines ....................................................................................................................10
30. Acquisition of Supplies and Equipment ........................................................................................................I 0
31. Program Monitoring........ ........................... ....................... ......... ......................... ............................. .............1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds.......................................................................................... ........................................................11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits .......... ............................................................................... ........ ....................... ....................................12
36. Counterparts ................................................ ...................... ........................................ ....................................13
37. Status of the Subrecipient ..............................................................................................................................13
38. Legal Proceedings .........................................................................................................................................13
39. Exlubits..................................................................................... .....................................................................13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project ActivitylDescription
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule of Payrnents/Request for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 151 day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Children's Fund,
hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1,2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavment
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Thirteen Thousand Dollars ($13,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement. Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference. All
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Requests for Reimbursement shall be submitted on a monthly basis in accordance with HUD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1112) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Summary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Comoliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result ofthis program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Sununary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-ExDendable ProDertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. ExDendable Personal ProDertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
II. Purchase or Lease of Non-Ex Den dab Ie Prooertv or Eauioment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other govermnental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every govermnental agency to each such
project or business activity, and the full name and address of each such govermnental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any govermnental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with govermnental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
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To the Subrecipient:
Rebecca Stafford
Children's Fund
385 North Arrowhead Avenue, 2nd Floor
San Bernardino, CA 92415
16. Assignment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBO funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well.being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs. Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBO funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use ofCDBO funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBO funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non.CDBO funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBO funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
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order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of$I,OOO,OOO limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgranteeslsubcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Independent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acquisition of Supplies and Equipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
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accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reoorts
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
persons/households assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious ProseIvtizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (1) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counterparts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecioient
This Agreement shall not become effective until such time as the Director or hislher
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
IIII
IIII
IIII
IIII
IIII
IIII
IIII
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or hislher designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Children's Fund
By: r;.JJ~/'<~ ~~
Foifchildren's Fund
ATTEST:
BY:~.Lh~
Rach I Clark, City Clerk
Approved as to Form:
14
Hf::Df
, P'! 10 Al'111: q6
CDBG SUB RECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
HOME OF NEIGHBORLY SERVICE, INC.
TABLE OF CONTENTS
OPERATIVE PROVISiONS.........................................................................................................................................1
I. Scope of Services ............... ........................................................ ............... ............ ..........................................1
2. Time of Performance ............................................................................... ..................... ...................................1
3. Compensation and Method ofPayment...........................................................................................................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affirmative Action .............. ......................................... .......... ................................................................ .........2
6. Discrimination ................................. ................................................................................................................2
7. Accounting ........................................ ..................................................... .......... .......... .....................................2
8. Budget Section ...................................... ............................................... ...........................................................3
9. Non-Expendable Property .................................. ........ ....... ...... ......... .......... ................................................ ..... 3
10. Expeudable Personal Property ............................ ........ .................. .............. .....................................................3
II. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Funding ...................... ............................ ....... ..... ....................... ...................... ................................. .......4
15. Notices...................................... ............................................................... ........................................... .............4
16. Assignment......... .............................................................................................................................................5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ........................................................................................... ............ ............ .................... .......6
19. Reversion of Assets ......... ..................................... ........ .......... ....... ........... .......................... ............................. 6
20. Fiscal Limitations .............................................. ................... ..... ....................................... ............................... 6
21. Use of Funds for Entertainment, Meals or Gifts.............................................................................................. 7
22. Release, Indemnification, and Hold Hannless................................................................................................. 7
23. Insurance Requirements ........................... ........................................ ............ ............ .............. ................... ...... 7
24. Conflict oflnterest......... .......................................................... ..... ............ ........................ .................... ........... 9
25. Budget Modifications .... .......... ..................... ....................................... ......................... .................. ................. 9
26. Time of Performance Modifications......... ............................................ ........... ............ ................. ...................9
27. Independent Contractor ........................ ...... ................. .................................. ............ ............... ............... ...... 10
28. Amendments; Variations .......................... ............................ .......... ......... ............... ............ .................... .......1 0
29. Purchase and Invoice Deadlines ....................................................................................................................10
30. Acquisition of Supplies and Equipment ........................................................................................................1 0
31. Program Monitoring .......................... ..... ............................................... ........ ........... ............. ........... .............1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds....................................................................................... ...........................................................11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ................................................................................................ ....................... ......................... ............ 12
36. Counterparts ............................................................... ........... ...... ..................................................................13
37. Status of the Subrecipient ........... ...................................................................................................................13
38. Legal Proceedings .........................................................................................................................................13
39. Exhibits..........................................................................................................................................................13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project ActivitylDescription
Budget Sununary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Conunitment
Schedule of Payment siRe quest for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 1 st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Home of Neighborly
Service, Inc., hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (OOD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality oflife of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "1" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavment
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Thirteen Thousand Dollars ($13,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement. Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference. All
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Requests for Reimbursement shall be submitted on a monthly basis in accordance with HUD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Summary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Comoliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Sununary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-Expendable Property
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the [mal disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal Propertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
11. Purchase or Lease of Non-Expendable Propertv or Eauipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (I) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure ReQuirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
4
To the Subrecipient:
Amparo Olguin
Home of Neighborly Service, Inc.
839 North Mt. V ernon Avenue
San Bernardino, CA 92411
16. Assilmment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or his/her designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBO
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case ofa termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place progranunatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Hannless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, hannless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of$I,OOO,OOO limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductib1es must be stated for each coverage. Deductib1es greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductib1es and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgranteeslsubcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acouisition of Supplies and Eouipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reoorts
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious Proselytizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title 1 of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (1) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
armually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or fmding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counterparts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the SubreciDient
This Agreement shall not become effective until such time as the Director or hislher
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
IIII
IIII
IIII
IIII
IIII
IIII
IIII
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or hislher designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Home of Neighborly Service, Inc.
~ -a..
By: ~~cVLn tfJ~
For Home 0 Neighborly Serv ce, Inc.
ATTEST:
By:~h~
Rachel lark, City Clerk
Approved as to Form:
14
nES'[ ;{~~~"::\'~D
, "'!~ I n
'., . I;,j
1" II. I' 6
I',fl! ' _
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
OPTION HOUSE, INC.
TABLE OF CONTENTS
OPERATIVE PROVISiONS.........................................................................................................................................1
I. Scope of Services ......................................................................... ...................................................................1
2. Time of Performance .......................................................................................................................................1
3. Compensation and Method ofPayment...........................................................................................................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affirmative Action ..........................................................................................................................................2
6. Discrimination ................................................................. ................................................................................2
7. Accounting ............................................................. .............. ......................... ..................................................2
8. Budget Section .................................................................. ................ ..............................................................3
9. Non-Expendable Property ...................................... ............. ....................... ............................ .........................3
10. Expendable Personal Property ........................................ .................................................................................3
II. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Funding ............................................................................. ........................ ..............................................4
15. Notices..................................................... ........................................................................................................4
16. Assignment.............................................................................. .......................... ..............................................5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ...................................................................... ........................................ ................................6
19. Reversion of Assets ................................................. ........................................ ....................... ......................... 6
20. Fiscal Limitations ...................................................... ............ .......................... .......... .......................... ............ 6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Hannless.................................................................................................7
23. Insurance Requirements ............................................................... ......................... .......................................... 7
24. Conflict of Interest...... ................................. .............................. .......................................... ............................9
25. Budget Modifications .......................................... ................. ..... ..................... ................. ..... ........................... 9
26. Time of Performance Modifications........................................ .......................... .............. ............ ....................9
27. Independent Contractor .................................................................................................................................10
28. Amendments; Variations .................................... ..... ............... .......................... .............. .......................... .....1 0
29. Purchase and Invoice Deadlines ....................................................................................................................1 0
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Monitoring ......................................................................................................................................10
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds......................................................................................... .........................................................11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ..................... .......................................................... ...................................................................... .......12
36. Counterparts ......................................................... ............................................ .............................................13
37. Status of the Subrecipient ................................................... ...........................................................................13
38. Legal Proceedings .........................................................................................................................................13
39. Exbibits........................................................................................... ........ .......................................................13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project Activity/Description
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule ofpaymentslRequest for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Option House, Inc.,
hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (RUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality oflife of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1,2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavment
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Ten Thousand Dollars ($10,000.00) which the Mayor and Common Council
approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall constitute
full and complete compensation for performance by the Subrecipient of the Services under
this Agreement. Method of payment shall be in the form of a Request for Reimbursement in
accordance with the terms and conditions set forth on Exhibit "6" to this Agreement, a copy
of which is attached hereto and incorporated herein by this reference. All Requests for
1
Reimbursement shall be submitted on a monthly basis in accordance with HUD regulations
"Audit Ready." The Redevelopment Agency of the City of San Bernardino (the "Agency")
on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total allocation
beginning the month of July 2006. Verifiable supporting documentation of expenditures for
services rendered, plus proof of payment all acceptable to the City in the sole discretion of
the City shall be submitted prior to any payment by the City to the Subrecipient. Supporting
statements shall give the total of said monthly expenses and shall also itemize the same in
detail conforming to the Budget Summary set forth on Exhibit "2". After timely receipt of
each supporting statement, the City will draw a warrant within thirty (30) days in favor of the
Subrecipient for the total amount of the Request for Reimbursement approved by the City.
The City will reject and return reimbursement requests not properly and/or completely
submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or his/her Designee.
9. Non-Exoendable Prooertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (1) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or his/her designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Exoendable Personal Prooertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or his/her designee.
11. Purchase or Lease ofNon-Exoendable Prooertv or Eauioment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
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To the Subrecipient:
Velda Griffin
Option House, Inc.
P.O. Box 970
San Bernardino, CA 92402
16. Assignment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or his/her designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly. suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
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the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
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order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or his/her designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or his/her designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance ReQuirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of $ 1,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
I. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgrantees/subcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit ''2'' when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Independent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition of Supplies and Eauipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBO funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
his/her designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reports
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
persons/households assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "1"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious ProselYtizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in counection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBO funds, pursuant to Title 1 of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
11
a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
12
36. Counteroarts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the SubreciDient
This Agreement shall not become effective until such time as the Director or his/her
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or his/her designee has reviewed and approved the form and
content of each exhibit.
IIII
IIII
IIII
IIII
IIII
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year fIrst written above.
CITY OF SAN BERNARDINO,
a municipal corporation
ATTEST:
BY:~/1 h.~
Rache lark, CIty Clerk
Approved as to Form:
By: O~II~J64
James F. P , City Attorney
SUBRECIPIENT
Option House, Inc.
ByiJ~
For Option House, Inc.
14
r:tC:P/E~) IT>;'
fic::",r....
. ~"'; ? 5
r:i 0: ":?
, t",-
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
SAN BERNARDINO SEXUAL ASSAULT SERVICES, INC.
TABLE OF CONTENTS
OPERATIVE PROViSIONS.........................................................................................................................................1
1. Scope of Services ................................... .................... ..................................... ................................................1
2. Time of Performance ........................... ............................................. ........................................... ....................1
3. Compensation and Method ofPayment...........................................................................................................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affinnative Action ......................................... ............................. ............... .......... ...........................................2
6. Discrimination.................................................................................................................................................2
7. Accounting ............................................................................... ................ .......................... .......................... ...2
8. Budget Section .......... ............................. .................................. ............... ........... ............... ..............................3
9. Non-Expendable Property ........................ ............................... .......... ........................... ...................................3
10. Expendable Personal Property ................. ............... ...... .......... ......................................................................... 3
11. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Funding ................................................................................ ................ ...................................................4
15. Notices........................... ............................................................. .....................................................................4
16. Assignment......................................................................................................................................................5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ........ ............................. .... ............. ................................. ........... .................. ..........................6
19. Reversion of Assets ................................... ............. ............... ............... ................................... ........................ 6
20. Fiscal Limitations .................................. ............... ....... ....... .................. ...........................................................6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Harmless.................................................................................................7
23. Insurance Requirements ....... ............................ ............................ .............. ........... ......................... ................. 7
24. Conflict of Interest........... ........................... ............................... ............... ............ ....................... ....................9
25. Budget Modifications .. ............................ ............................................... ............. .................. ...... ....................9
26. Time of Performance Modifications.......... .................. ........ ................... ............ .................... .........................9
27. Indepeudent Contractor ................... ..... ..... .............................. ........... ......................... ..................................1 0
28. Amendments; Variations ....................... ............................... .............. ............. ............... ...............................1 0
29. Purchase and Invoice Deadlines ....................................................................................................................1 0
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Monitoring ......................................................................................................................................1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds.................... ............................. ........................... ......................... .......................... ...................11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits .................. ................................ .............. ............................................ ................. ...............................12
36. Counterparts ....... ............................... ........................................... .................................................................13
37. Status of the Subrecipient ............................. ............................................................................... ..................13
38. Legal Proceedings .........................................................................................................................................13
39. Exbibits.......................................................................................................................................................... 13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project ActivitynJescription
Budget Sununary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule ofPayments/Request for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
COBG Compliance Report
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and San Bernardino Sexual
Assault Services, Inc., hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (BUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
BUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavment
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Thirteen Thousand Dollars ($13,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement. Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference. All
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Requests for Reimbursement shall be submitted on a monthly basis in accordance with HUD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Summary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-Expendable Propertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal Property
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
11. Purchase or Lease of Non-Expendable Property or Eauipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
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To the Subrecipient:
Candy Stallings
San Bernardino Sexual Assault Services, Inc.
444 North Arrowhead Avenue, Suite 101
San Bernardino, CA 92401
16. Assilmment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
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the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of rea I
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal lirnitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
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order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertaimnent. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertaimnent, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of $1 ,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating of B+ VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgranteeslsubcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (IS) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acquisition of Supplies and Equipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
his/her designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress ReDorts
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
persons/households assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious Proselytizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in counection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title 1 of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (1) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counterparts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the SubreciDient
This Agreement shall not become effective until such time as the Director or hislher
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or hislher designee has reviewed and approved the form and
content of each exhibit.
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, I
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
San Bernardino Sexual Assault Services, Inc.
BY.~~
Pa 'ckJ. rris,Mayor~
Inc.
City of San Bernardino
By:
For San ernardino-g
ault Services,
ATTEST:
By: ~Il h~
Rachel ark, City Clerk
Approved as to Form:
14
PEDt
35 Hl \0: 27
" {' ,.' ()F
,'A' " :('-lC)
ESG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
NEW HOUSE, INC.
AGREEMENT FOR USE OF EMERGENCY SHELTER GRANT FUNDS
THIS AGREEMENT, entered in this 1st day of July, 2006 by and between the CITY OF SAN
BERNARDINO, (hereinafter referred to as the "CITY") and New House, Inc., a California non-profit
corporation, (hereinafter referred to as the "SUBRECIPIENT");
WITNESSETH
WHEREAS, pursuant to Subtitle "B" of the Stewart B. McKinney Homeless Assistance Act
of 1987 (public Law 100-77), (hereinafter referred to as the "Act"), the CITY has been awarded
Emergency Shelter Grant Program ("ESGP") funds which are to be used to improve the quality of
existing emergency shelters for the homeless, to help make available additional emergency shelters,
and to help meet the costs of operating emergency shelters and of providing certain essential social
services to homeless individuals, and;
WHEREAS, the CITY desires to contract with non-profit corporations for the use of ESGP
funds to provide various services for homeless individuals, and;
WHEREAS, the SUBRECIPIENT as a non-profit corporation, is eligible under the Act to
receive ESGP funds to provide those services as described herein.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
1. Term.
The term of this Agreement shall be for a period commencing on July 1, 2006, and
terminating on June 30, 2007, or as otherwise provided for in Section 5 herein.
2. ScoDe of Services.
The SUBRECIPIENT promises and agrees to provide certain emergency shelter grant
program services for homeless persons by utilizing the sum of Ten Thousand Dollars
($10,000.00) in ESGP funds, as set forth in the manner provided in Exhibit "A" which is
attached hereto, and by this reference, incorporated herein. The SUBRECIPIENT shall also
provide homeless individuals with assistance in obtaining (i) appropriate supportive services,
including permanent housing, physical and mental health treatment, counseling, supervision,
and other services essential for achieving independent living, and; (ii) other federal, state,
local and private assistance provided hereunder shall be in full conformity with the Act, and
any amendments thereto, and the federal regulations and guidelines now, or hereinafter
enacted pursuant to the Act.
3. Matchinl! Funds.
The SUBRECIPIENT must supplement its emergency shelter grant amounts with an equal
amount of funds from sources other than those provided herein and from non-federal sources.
These funds must be provided after the date of the grant award to the SUBRECIPIENT. The
SUBRECIPIENT may comply with this requirement by providing the supplemental funds
itself, or voluntary efforts or gifts in kind provided to the SUBRECIPIENT, as appropriate.
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4. Calculatine the Matchine Amount.
In calculating the amount of supplemental funds, there may be included the value of any
donated material or building(s), the value of the lease(s) on the building(s); any salary paid to
staff of the SUBRECIPIENT, or to any State or non-profit recipient, as appropriate, in
carrying out the Emergency Shelter Grant Program; and the time and services contributed by
volunteers to carry out the ESGP, determined at the rate of $5.00 per hour. For purposes of
this Section 4, the SUBRECIPIENT upon concurrence of the Executive Director (the
"Administrator") of the Redevelopment Agency of the City of San Bernardino ("Agency"),
the Administrator of the ESG Program, will determine the value of any donated material or
building(s) or any lease(s), or furnishings and equipment using any method reasonably
calculated to establish a fair market value.
5. Termination.
(a) Either party may terminate this Agreement upon thirty (30) days prior written notice to
the other party.
(b) Notwithstanding the provisions of Section 5(a), the CITY may suspend or terminate
this Agreement forthwith for cause, upon written notice to the SUBRECIPIENT of the
action being taken. Cause shall be established, (i) in the event the SUBRECIPIENT
fails to perform the covenants herein contained; (ii) in the event there is a conflict with
any federal, state or local law, ordinance, regulation or rule rendering any of the
provisions of this Agreement invalid or untenable, or; (iii) in the event the funding
from the United States Department of Housing and Urban Development (HUD),
referred to in the recitals herein, is reduced, terminated or otherwise becomes
unavailable. The CITY shall provide written notice to the SUBRECIPIENT within ten
(10) working days from the date HUD reduces, suspends or terminates the ESGP
funding. This Agreement may, at the discretion of the Administrator of the CITY, be
either terminated or amended to reflect said reduction of funds.
(c) Upon termination of this Agreement, the SUBRECIPIENT agrees to return any
unencumbered funds which it has been provided by the CITY. In accepting said
funds, the CITY does not waive any claim or cause of action it may have against the
SUBRECIPIENT for breach of this Agreement.
(d) Upon termination of this Agreement, the SUBRECIPIENT shall not incur any
obligations after the effective date of such termination.
(e) Any provisions for inspection and audits relative to the expenditure of funds provided
for hereunder shall not be ended upon the date of any termination but shall continue
thereafter as specified herein.
(1) SUBRECIPIENT will be required to cooperate and work in collaboration with City
departments, to include but not limited to: Police Department, Fire Department and
Code Compliance and the Agency in an effort to promote the well-being of citizens
and aid in reduction of crime, blight and unsafe living conditions. From time to time,
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SUBRECIPIENT may be required to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 5. Termination. ofthis Agreement.
6. Pavment of Funds.
The Mayor and Common Council of the CITY shall determine the final disposition and
distribution of all funds received by the CITY under the Act. On behalf of the CITY, the
Agency shall make payments of ESGP funds to the SUBRECIPIENT for the purposes set
forth in Exhibit "A" and shall monitor the expenditure of funds and activities of the
SUBRECIPIENT to ensure compliance with applicable federal regulations and the terms of
this Agreement. The SUBRECIPIENT shall establish and maintain a separate account for all
ESGP funds received under this Agreement and deposit all such funds in said account.
All disbursements of ESGP funds by the Agency will be made in the following manner:
(a) Payments shall be made on a reimbursement basis and made within thirty (30) days
after the SUBRECIPIENT has submitted written notice identifying payments made
and requesting reimbursement. Payments shall be based on documented expenses by
the SUBRECIPIENT, for the purposes set forth in Exhibit "B" approved by the
Administrator, or hislher designee. The Agency shall reimburse on a monthly basis,
1/12 of the SUBRECIPIENT's ESGP funds.
(b) In no event shall the CITY or the Agency, or any of its officers, agents or employees,
be held liable for expenses incurred by the SUBRECIPIENT in excess of the ESGP
allocation noted in Section 2, entitled "Scope of Services."
(c) Payments may be withheld if, on a determination by the Administrator, the
SUBRECIPIENT has not complied with the covenants herein contained at such times,
and in such manner as provided in this Agreement.
(d) No later than thirty (30) days prior to the date set forth herein for termination of this
Agreement, the SUBRECIPIENT shall provide the CITY or Agency with its estimate
of the amount of funds which will remain unexpended upon such termination.
Notwithstanding any provisions contained in this Section 6, the Agency, through its
Administrator, shall thereafter, upon reasonable notice provide to the SUBRECIPIENT, have
the right to (i) reduce the payment of funds hereunder, (ii) renegotiate the actual levels of
expenditures in the event the SUBRECIPIENT's rate of expenditures will result in
unexpended funds at the expiration of this Agreement, and/or; (iii) re-program funds
associated with this Agreement in which the Administrator finds there has been no substantial
progress or activity.
3
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7. Documentation. ReDorts. InsDections and Performance Evaluations.
(a) Documentation of EXDenditures. All expenditures supported by properly executed
payrolls, time records, invoices, contracts, vouchers, receipts, orders and any other
accounting documentation pertaining, in whole or in part, to this Agreement, shall be
clearly identified and readily accessible. The SUBRECIPIENT shall maintain and
keep available all such documents for a period of not less than three (3) years from the
termination of this Agreement, if a CITY, Agency, state and/or federal audit has
occurred within six (6) months prior to date of termination, and for a period of not less
than five (5) years from said date if such audit has not occurred. In the event of audit
exception, such documentation shall be maintained until every exception has been
cleared to the satisfaction of the auditing authority.
(b) Reports. The SUBRECIPIENT, at such times and on such forms as the Agency may
require, shall furnish the Agency such statements, records, reports, data and
information as the Agency may request pertaining to its performance of services
hereunder and other matters covered by this Agreement. The SUBRECIPIENT shall
establish and maintain records in accordance with the Office of Management and
Budget (OMB) Circulars Numbered A-1I0 and A-1I2, respectively, as applicable to
the acceptance and use of emergency shelter grants.
(c) Inspections. The SUBRECIPIENT shall make available to the CITY and/or Agency,
state and/or federal officials its records and data with respect to all matters covered by
this Agreement for inspection and audit, which inspection and audit may be made at
any time after reasonable notice. The SUBRECIPIENT shall comply with the audit
requirements ofOMB Circular Number A-IIO, as applicable, and as they relate to the
acceptance and use of federal funds under this Agreement.
(d) Performance Evaluations. The SUBRECIPIENT shall permit CITY and/or Agency,
state and/or federal officials to monitor, assess or evaluate the SUBRECIPIENT's
performance under this Agreement on at least a monthly basis, said monitoring,
assessment or evaluation to include, but not be limited to, audits, inventory,
inspections within the program area, and interviews with the SUBRECIPIENT's
employees, agents, independent contractors and subcontractors, providing the services
under this Agreement and recipients thereof.
(e) This Agreement contemplates that the SUBRECIPIENT will pay salaries, utilities and
furnishings with the monies provided in accordance with Exhibit "B" and Section 2
Scope of Services, of this Agreement.
8. BuUdin!! or Facility.
(a) Any building for which emergency shelter grant amounts are used for renovation,
conversion, or major rehabilitation, must meet local safety and sanitation standards.
(b) When ESOP funds are utilized to provide emergency shelter for the homeless in hotels
or motels or other commercial facilities providing transient housing, (i) the
SUBRECIPIENT, at the request of the CITY and/or Agency, shall execute an
4
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Agreement with the provider of such housing which provides that comparable living
space, in terms of quality, available in the facility for use as emergency shelters for at
least the same period of time as provided in Section 9 herein, and; (ii) leases
negotiated between the SUBRECIPIENT and the provider of such housing shall make
available such living space at substantially less than the daily room rate otherwise
charged by the facility and; (iii) the SUBRECIPIENT shall certify, in writing, to CITY
and/or Agency that it has considered using other facilities as emergency shelter for the
homeless in the City.
(c) The SUBRECIPIENT shall ensure that any building or facility is utilized exclusively
for secular purposes and is made available to all person regardless of religion. If
ESGP funds are used to renovate, rehabilitate, or convert buildings owned by
primarily religious organization or entities, the SUBRECIPIENT shall comply with
the provisions ofTitle 24, Code of Federal Regulations, Part 575.21(b)(2).
(d) The SUBRECIPIENT shall comply with the Uniform Federal Accessibility Standards
(24 CFR, Part 40, Appendix "A"), when activities funded by the ESGP involve major
rehabilitation or conversion.
9. Maintenance as a Homeless Facilitv.
(a) The SUBRECIPIENT shall maintain any building for which ESGP funds are used for
not less than a three (3) year period, or for not less than a ten (10) year period if the
grant amounts are used for major rehabilitation or conversion of the building.
(b) The three (3) or ten (10) year periods begin to run, (i) on the date of initial occupancy
as an emergency shelter for the homeless when the building utilized was not operated
as an emergency shelter for the homeless before receiving ESGP funds, or; (ii) on the
date that ESGP funds are first obligated to the shelter when the building was operated
as an emergency shelter before receiving ESGP funds, or; (ii) on the date that ESGP
funds are first obligated to shelter when the building was operated as an emergency
shelter before receiving ESGP funds.
(c) When ESGP funds are used exclusively to provide essential services including, but not
limited to, services concerned with employment, physical or mental health, substance
abuse, education, food, equipment or furnishings, the time periods noted in (a) above
are not applicable.
10. Independent Capacity.
The SUBRECIPIENT, and its officers, employees and agents, shall act in an independent
capacity during the term of this Agreement and shall not act as, shall not be, nor shall they in
any manner be construed to be officers, employees, or agents of the CITY and/or the Agency
or the State of California.
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11. Assil!nabilitv.
The SUBRECIPIENT cannot assign any of its rights, duties or obligations pursuant to this
Agreement to any person or entity without the prior written consent of the CITY or the
Agency. This includes the ability to subcontract all, or a portion of, its rights, duties and
obligations hereunder.
12. Insurance.
The SUBRECIPIENT shall during the term ofthis Agreement:
(a) Procure and maintain Workers' Compensation Insurance as prescribed by the laws of
the State of California.
(b) Procure and maintain comprehensive general and automobile liability insurance as
shall protect the SUBRECIPIENT from claims for damages for personal injury,
including accidental and wrongful death, as well as from claims for property damage,
which may arise from activities or programs under this Agreement, whether such
activities or programs by the SUBRECIPIENT, by any subcontractor or by any
officer, employee or agent of either of them.
Such insurance shall name the CITY and the Agency, their officers, officials,
attorneys, agents, employees, volunteers and independent contractors as additional
insureds with respect to this Agreement and the obligations of the SUBRECIPIENT
hereunder. Such insurance shall provide for combined coverage limits of not less than
$1,000,000 per occurrence.
(c) Furnish the CITY and the Agency with policies of insurance, prior to request for first
reimbursement for ESGP funds showing that such insurance is in full force and effect,
and that the CITY and the Agency are named as additional insureds with respect to
this Agreement and the obligations of the SUBRECIPIENT hereunder. Further, said
policies shall contain the covenant of the insurance carrier that thirty (30) days written
notice will be given to the CITY and the Agency prior to modification, cancellation, or
reduction in coverage of such insurance.
13. Hold Harmless.
The SUBRECIPIENT shall indemnify and hold the CITY and the Agency, their officers,
officials, attorneys, agents, employees, volunteers and independent contractors free and
harmless from any liability whatsoever, including wrongful death, based or asserted upon any
act or omission of the SUBRECIPIENT, its officers, agents, employees and independent
contractors in any legal action based upon such alleged acts or omissions. The specific
insurance coverage required in Section 12 shall in no way limit or circumscribe the
SUBRECIPIENT'S obligation to indemnify and hold the CITY and the Agency harmless as
set forth in this Section 13.
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14. Federal Reauirement.
(a) The SUBRECIPIENT shall comply with the proVIsIons of the Act, and any
antendments thereto, and the federal regulations and guidelines now or hereinafter
enacted pursuant to the Act. More particularly, the SUBRECIPIENT is to comply
with those regulations found in Part 575 of Title 24 of the Code of Federal Regulations
and OMB Circulars Numbered A-110 and A-ll2, respectively, and appropriate
attachments for non-profit organization contractors.
(b) The SUBRECIPIENT represents that it is, or may be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by, or in connection with, a religious or denominational
institution or organization.
(c) The SUBRECIPIENT agrees that, in connection with the services to be provided
hereunder, (i) it will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or give preference
in employment to persons on the basis of religion; (ii) it will not discriminate against
any person applying for such services on the basis of religion and will not limit such
services or give preference to persons on the basis of religion; (iii) it will provide no
religious instruction or counseling, conduct no religious workshop or services, engage
in no religious proselytizing and exert no other religious influence in the provision of
such services; (iv) the portion of a facility used to provide services assisted, in whole
or in part, under this Agreement shall contain no sectarian or religious symbols or
decorations, and; (v) the funds received under this Agreement shall not be used to
construct, rehabilitate, or restore any facility which is owned by the SUBRECIPIENT
in which the services are to be provided; provided that, minor repairs may be made if
such repairs are directly related to the services; are located in a structure used
exclusively for non-religious purposes, and; constitute in dollar terms only a minor
portion of the ESOP expenditure for the public services.
(d) The SUBRECIPIENT shall comply with the Housing and Community Development
Act (HCD Act) of 1992 (public Law 102-550, approved October 28, 1992), which
requires the involvement of, to the extent practicable, homeless individuals and
fantilies and operating facilities assisted under the ESOP in providing services for
occupants of these facilities (42 D.S.C. 11375(c)(7), as added by Section 1402 (b)).
(e) The SUBRECIPIENT shall comply with HCD Act, Section 1402 (d), which requires
that termination of assistance to any individual or fantily be in accordance with a
formal process, which may include a hearing, established by the SUBRECIPIENT.
15. Compliance with Law.
The SUBRECIPIENT shall comply with all federal, state and local laws and regulations
pertinent to its operation and services to be performed hereunder, and shall keep in effect any
and all licenses, permits, notices and certificates as are required thereby. The
SUBRECIPIENT shall further comply with all laws applicable to wages and hours of
employment, occupational safety and to fire safety, health and sanitation.
7
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16. Comprehensive Homeless Assistance Plan.
The SUBRECIPIENT shall cooperate with the CITY and the Agency in undertaking
emergency shelter grant activities and shall assist the CITY and the Agency in carrying out
the Comprehensive Homeless Assistance Plan and any other applicable strategies
implemented by the CITY and the Agency and shall act in conformity therewith.
17. Non-Discrimination and Equal Opportunity Compliance.
The SUBRECIPIENT hereby certifies compliance with the following:
(a) Executive Order Number 11246, as amended, and the regulations issued thereunder at
Title 41, Code of Federal Regulations, Chapter 60;
(b) Title VI and Title VII of the Civil Rights Act of 1964 (423 V.S.C. Section 2000(d) et.
seq.), as amended by the Equal Opportunity Act of March 24, 1972, (public Law
Number 92-261);
(c) Title VIII of the Civil Rights Act of 1968 (42 V.S.C. Sections 3601-3619) and
implementing regulations issued pursuant thereto (24 CFR, Part 1);
(d) Executive Order Number 11063 and implementing regulations issued pursuant thereto
(25 CFR, Part 107);
(e) Age Discrimination Act of1975 (42 V.S.C., Sections 6101-6107);
(f) Section 504 of the Rehabilitation Act of 1973 (29 V.S.C., Section 794), and;
(g) Executive Orders Numbered 11625, 12432 and 12138 consistent with HUD's
responsibilities under these Orders, the SUBRECIPIENT must make efforts to
encourage the use of minority and women owned business enterprises in connection
with ESOP activities;
(h) The SUBRECIPIENT shall establish and maintain a procedure through which
homeless individuals will be informed of the facilities and services available to all on
a nondiscriminatory basis.
(i) SUBRECIPIENT agrees to abide by, and include in any subcontracts to perform work
under this Agreement, the following clause:
"During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors shall not unlawfully discriminate against any employee or application
for employment because of race, religion, color, national origin, ancestry, physical
handicap, medical condition, marital status, age (over 40), or sex. The
SUBRECIPIENT and subcontractors shall ensure that the evaluation and treatment of
their employees and applications for employment are free of such discrimination.
8
p,~~~ESG"",-"",.
The SUBRECIPIENT and subcontractors shall comply with the provisions of the Fair
Employment and Housing Act (Government Code, Section 12900 et. seq.). The
applicable regulations of the Fair Employment and Housing Cornmission
implementing Government Code Section 12990, set forth in Chapter five (5) of
Division four (4) of Title two (2) of the California Administrative Code are
incorporated into this Agreement by reference and made a part hereof as if fully set
forth at length.
The SUBRECIPIENT and its subcontractors shall give written notice of their
obligations under this clause to labor organizations with which they have collective
bargaining or other agreement."
(j) The equal opportunity clause continued in Section 202 of Executive Order Number
11246, as amended, is hereby incorporated into this Agreement by this reference.
(k) During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors, if any, shall not deny the benefits rendered hereunder to any person on
the basis of religion, color, ethnic group identification, sex, age or physical or mental
disability.
(I) The SUBRECIPIENT shall furnish all information and reports as required by
Executive Order Number 11246, as amended.
(m) The SUBRECIPIENT shall include the non-discrimination and compliance provisions
of the equal opportunity clause in all subcontracts, if any.
18. Affirmative Action Compliance.
Each SUBRECIPIENT or subcontractor with less than fifty (50) employees shall comply with
Section 202, Part II, of Executive Order Number 11246, as amended. The SUBRECIPIENT
shall ensure that subcontractors, if any, falling within the scope of this provision shall comply
in full with the requirements thereof
19. ConRict of Interest.
No person who is (i) an employee, agent, consultant, officer, or elected or appointed official
of the CITY, the Agency, state or the SUBRECIPIENT that receives ESGP funds and who
exercises or has exercised any functions or responsibilities with respect to assisted activities,
or; (ii) in a position to participate in a decision making process or gain inside information with
regard to such activities, may obtain a personal or financial interest or benefit from the
activity, or have an interest in any contract, subcontract or agreement with respect thereto, or
the proceeds thereunder, either for himself or herself or those with whom he or she has family
or business ties, during his or her tenure or for one (I) year thereafter.
20. Elil!ibilitv of Contractors and Subcontractors.
No ESGP funds allocated to the SUBRECIPIENT through this Agreement may be used,
directly or indirectly, to employ, award contracts to, or otherwise engage the services of, or
9
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purchase the goods of, or fund any contractor or subcontractor during any period of
debarment, suspension, or placement in ineligibility status under the provision of 24 CFR,
Part 4.
21. Lead Based Paint.
The SUBRECIPIENT and aH subcontractors, if any, shaH comply with the requirements, as
applicable, of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C., Section 4821-4846)
and implementing regulations issued pursuant thereto (24 CPR, Part 35).
22. Flood Insurance.
No site proposed on which renovation, major rehabilitation, or conversion of a building, is to
be assisted under this part, other than by grant amounts aHocated to the state, may be located
in an area that has been identified by the Federal Emergency Management Agency as having
special flood hazards, unless the community in which the areas is situated is participating in
the National Flood Insurance Program and the regulations issued thereunder (44 CFR, Parts
59-79) or less than a year has passed since the Federal Emergency Management Agency
notification regarding such hazards, and the SUBRECIPIENT will ensure that flood insurance
on the structure is obtained in compliance with Section 102(a) of the Flood Disaster
Protection Act of 1973, (42 D.S.C., Section 4001 et. seq.).
23. Notice.
Any notices required or desired to be served by either party upon the other shaH be addressed
to respective parties as set forth below (or to such other addresses as from time to time may be
designated, in writing, by the respective parties):
AS TO AGENCY:
AS TO SUBRECIPIENT:
Maggie Pacheco, Executive Director
Economic Development Agency
201 North "E" Street, Suite 301
San Bernardino CA 92401-1507
Pat Sutay, Executive Director
New House, Inc.
850 North Arrowhead Avenue
San Bernardino, CA 92401
24. Bindinl! Successors.
The SUBRECIPIENT, its heirs, assigns and successors in interest shaH be bound by aH the
provisions contained in this Agreement, and aH of the parties thereto shaH be jointly and
severally liable hereunder.
25. Assurances.
The SUBRECIPIENT certifies that it has the legal authority to enter into and meet the
requirements of this Agreement.
10
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26. Lel!:al Proceedinl!:s.
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this Agreement between the parties it should be filed in San Bernardino County
Superior Court. The prevailing party shall be entitled to recover its reasonable legal fees.
The costs, salary and expenses of the City Attorney and members of his office in enforcing
this Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this section.
27. Entire Al!:reement.
This Agreement is intended by the parties hereto as the final and exclusive expression of these
provisions contained in this Agreement and it supersedes and replaces any and all prior and
contemporaneous agreements and understandings, oral or written, in connection therewith.
This Agreement may be modified or changed only upon the written consent of the parties
hereto.
28. No Third Party Beneficiaries.
IIII
IIII
IIII
IIII
IIII
IIII
IIII
IIII
IIII
IIII
IIII
IIII
IIII
No third party shall be deemed to have any rights hereunder against any of the parties hereto
as a result ofthis Agreement.
11
r:'Eonu\tbuia,J'onM\I!SG ~N006-JOO1l'!SG....--.Mqe._
IN WITNESS WHEREOF, the parties hereto have hereunto their hands and seals this day and
year first above written.
CITY OF SAN BERNARDINO
New House,In:.
a California non-profit corporation
~r ~~~
Pat k J. M rris, Mayor
Q-Y7i
xecutive Director
ATTEST
City of San Bernardino
~ h CJ.lvJc
Rachel lark, City Clerk
Approved as to Form:
tQ
12
r:~lf~I'onIu\2006-200~2007ESG~Mqe-~
, '''" I a
"'11'.1'6
"u '.)
ESG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
OPTION HOUSE, INC.
AGREEMENT FOR USE OF EMERGENCY SHELTER GRANT FUNDS
THIS AGREEMENT, entered in this 1st day of July, 2006 by and between the CITY OF SAN
BERNARDINO, (hereinafter referred to as the "CITY") and Option House, Inc., a California
non-profit corporation, (hereinafter referred to as the "SUB RECIPIENT");
WITNESSETH
WHEREAS, pursuant to Subtitle "B" of the Stewart B. McKinney Homeless Assistance Act
of 1987 (Public Law 100-77), (hereinafter referred to as the "Act"), the CITY has been awarded
Emergency Shelter Grant Program ("ESGP") funds which are to be used to improve the quality of
existing emergency shelters for the homeless, to help make available additional emergency shelters,
and to help meet the costs of operating emergency shelters and of providing certain essential social
services to homeless individuals, and;
WHEREAS, the CITY desires to contract with non-profit corporations for the use of ESGP
funds to provide various services for homeless individuals, and;
WHEREAS, the SUBRECIPIENT as a non-profit corporation, is eligible under the Act to
receive ESGP funds to provide those services as described herein.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
1. Term.
The term of this Agreement shall be for a period commencing on July 1, 2006, and
terminating on June 30, 2007, or as otherwise provided for in Section 5 herein.
2. Scope of Services.
The SUBRECIPIENT promises and agrees to provide certain emergency shelter grant
program services for homeless persons by utilizing the sum of Nineteen Thousand Eight
Hundred Seventy Dollars ($19,870.00) in ESGP funds, as set forth in the manner provided in
Exhibit "A" which is attached hereto, and by this reference, incorporated herein. The
SUBRECIPIENT shall also provide homeless individuals with assistance in obtaining (i)
appropriate supportive services, including permanent housing, physical and mental health
treatment, counseling, supervision, and other services essential for achieving independent
living, and; (ii) other federal, state, local and private assistance provided hereunder shall be in
full conformity with the Act, and any amendments thereto, and the federal regulations and
guidelines now, or hereinafter enacted pursuant to the Act.
3. Matchinl! Funds.
The SUBRECIPIENT must supplement its emergency shelter grant amounts with an equal
amount of funds from sources other than those provided herein and from non-federal sources.
These funds must be provided after the date of the grant award to the SUBRECIPIENT. The
SUBRECIPIENT may comply with this requirement by providing the supplemental funds
itself, or voluntary efforts or gifts in kind provided to the SUBRECIPIENT, as appropriate.
1
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4. Calculatinl!: the Matchinl!: Amount.
In calculating the amount of supplemental funds, there may be included the value of any
donated material or building(s), the value of the lease(s) on the building(s); any salary paid to
staff of the SUBRECIPIENT, or to any State or non-profit recipient, as appropriate, in
carrying out the Emergency Shelter Grant Program; and the time and services contributed by
volunteers to carry out the ESGP, determined at the rate of $5.00 per hour. For purposes of
this Section 4, the SUBRECIPIENT upon concurrence of the Executive Director (the
"Administrator'') of the Redevelopment Agency of the City of San Bernardino ("Agency"),
the Administrator of the ESG Program, will determine the value of any donated material or
building(s) or any lease(s), or furnishings and equipment using any method reasonably
calculated to establish a fair market value.
5. Termination.
(a) Either party may terminate this Agreement upon thirty (30) days prior written notice to
the other party.
(b) Notwithstanding the provisions of Section 5(a), the CITY may suspend or terminate
this Agreement forthwith for cause, upon written notice to the SUBRECIPIENT of the
action being taken. Cause shall be established, (i) in the event the SUBRECIPIENT
fails to perform the covenants herein contained; (ii) in the event there is a conflict with
any federal, state or local law, ordinance, regulation or rule rendering any of the
provisions of this Agreement invalid or untenable, or; (iii) in the event the funding
from the United States Department of Housing and Urban Development (HUD),
referred to in the recitals herein, is reduced, terminated or otherwise becomes
unavailable. The CITY shall provide written notice to the SUBRECIPIENT within ten
(10) working days from the date HUD reduces, suspends or terminates the ESGP
funding. This Agreement may, at the discretion of the Administrator of the CITY, be
either terminated or amended to reflect said reduction of funds.
(c) Upon termination of this Agreement, the SUBRECIPIENT agrees to return any
unencumbered funds which it has been provided by the CITY. In accepting said
funds, the CITY does not waive any claim or cause of action it may have against the
SUBRECIPIENT for breach of this Agreement.
(d) Upon termination of this Agreement, the SUBRECIPIENT shall not incur any
obligations after the effective date of such termination.
(e) Any provisions for inspection and audits relative to the expenditure of funds provided
for hereunder shall not be ended upon the date of any termination but shall continue
thereafter as specified herein.
(f) SUBRECIPIENT will be required to cooperate and work in collaboration with City
departments, to include but not limited to: Police Department, Fire Department and
Code Compliance and the Agency in an effort to promote the well-being of citizens
and aid in reduction of crime, blight and unsafe living conditions. From time to time,
2
1',~~~2OO1I2OO6-1OO7ESG~Mqe._
SUBRECIPIENT may be required to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 5. Termination. of this Agreement.
6. Payment of Funds.
The Mayor and Common Council of the CITY shall determine the final disposition and
distribution of all funds received by the CITY under the Act. On behalf of the CITY, the
Agency shall make payments of ESGP funds to the SUBRECIPIENT for the purposes set
forth in Exhibit "A" and shall monitor the expenditure of funds and activities of the
SUBRECIPIENT to ensure compliance with applicable federal regulations and the terms of
this Agreement. The SUBRECIPIENT shall establish and maintain a separate account for all
ESGP funds received under this Agreement and deposit all such funds in said account.
All disbursements ofESGP funds by the Agency wiIl be made in the following manner:
(a) Payments shall be made on a reimbursement basis and made within thirty (30) days
after the SUBRECIPIENT has submitted written notice identifying payments made
and requesting reimbursement. Payments shall be based on documented expenses by
the SUBRECIPIENT, for the purposes set forth in Exhibit "B" approved by the
Administrator, or hislher designee. The Agency shall reimburse on a monthly basis,
1/12 of the SUBRECIPIENT's ESGP funds.
(b) In no event shall the CITY or the Agency, or any of its officers, agents or employees,
be held liable for expenses incurred by the SUBRECIPIENT in excess of the ESGP
allocation noted in Section 2, entitled "Scope of Services."
(c) Payments may be withheld if, on a determination by the Administrator, the
SUBRECIPIENT has not complied with the covenants herein contained at such times,
and in such manner as provided in this Agreement.
(d) No later than thirty (30) days prior to the date set forth herein for termination of this
Agreement, the SUBRECIPIENT shall provide the CITY or Agency with its estimate
of the amount of funds which wiIl remain unexpended upon such termination.
Notwithstanding any provisions contained in this Section 6, the Agency, through its
Administrator, shall thereafter, upon reasonable notice provide to the SUBRECIPIENT, have
the right to (i) reduce the payment of funds hereunder, (ii) renegotiate the actual levels of
expenditures in the event the SUBRECIPIENT's rate of expenditures wiIl result in
unexpended funds at the expiration of this Agreement, and/or; (iii) re-program funds
associated with this Agreement in which the Administrator finds there has been no substantial
progress or activity.
3
p:~Fol-'ESG~2007ESG""'-"Merp.doe
7. Documentation. Reports. Inspections and Performance Evaluations.
(a) Documentation of Expenditures. All expenditures supported by properly executed
payrolls, time records, invoices, contracts, vouchers, receipts, orders and any other
accounting documentation pertaining, in whole or in part, to this Agreement, shall be
clearly identified and readily accessible. The SUBRECIPIENT shall maintain and
keep available all such documents for a period of not less than three (3) years from the
termination of this Agreement, if a CITY, Agency, state and/or federal audit has
occurred within six (6) months prior to date of termination, and for a period of not less
than five (5) years from said date if such audit has not occurred. In the event of audit
exception, such documentation shall be maintained until every exception has been
cleared to the satisfaction of the auditing authority.
(b) ReDorts. The SUBRECIPIENT, at such times and on such forms as the Agency may
require, shall furnish the Agency such statements, records, reports, data and
information as the Agency may request pertaining to its performance of services
hereunder and other matters covered by this Agreement. The SUBRECIPIENT shall
establish and maintain records in accordance with the Office of Management and
Budget (OMB) Circulars Numbered A-1l0 and A-1l2, respectively, as applicable to
the acceptance and use of emergency shelter grants.
(c) Inspections. The SUBRECIPIENT shall make available to the CITY and/or Agency,
state and/or federal officials its records and data with respect to all matters covered by
this Agreement for inspection and audit, which inspection and audit may be made at
any time after reasonable notice. The SUBRECIPIENT shall comply with the audit
requirements of OMB Circular Number A-llO, as applicable, and as they relate to the
acceptance and use of federal funds under this Agreement.
(d) Performance Evaluations. The SUBRECIPIENT shall permit CITY and/or Agency,
state and/or federal officials to monitor, assess or evaluate the SUBRECIPIENT's
performance under this Agreement on at least a monthly basis, said monitoring,
assessment or evaluation to include, but not be limited to, audits, inventory,
inspections within the program area, and interviews with the SUBRECIPIENT's
employees, agents, independent contractors and subcontractors, providing the services
under this Agreement and recipients thereof.
(e) This Agreement contemplates that the SUBRECIPIENT will pay salaries, utilities and
furnishings with the monies provided in accordance with Exhibit "B" and Section 2
Scope of Services, of this Agreement.
8. Buildine or Facilitv.
(a) Any building for which emergency shelter grant amounts are used for renovation,
conversion, or major rehabilitation, must meet local safety and sanitation standards.
(b) When ESGP funds are utilized to provide emergency shelter for the homeless in hotels
or motels or other commercial facilities providing transient housing, (i) the
SUBRECIPIENT, at the request of the CITY and/or Agency, shall execute an
4
P:~ fonuIESG 1'GnuI2Oll6-:zoo7IJOO6-2007 ESG...-_ Mcqc..duc
Agreement with the provider of such housing which provides that comparable living
space, in terms of quality, available in the facility for use as emergency shelters for at
least the same period of time as provided in Section 9 herein, and; (ii) leases
negotiated between the SUBRECIPIENT and the provider of such housing shall make
available such living space at substantially less than the daily room rate otherwise
charged by the facility and; (iii) the SUBRECIPIENT shall certify, in writing, to CITY
and/or Agency that it has considered using other facilities as emergency shelter for the
homeless in the City.
(c) The SUBRECIPIENT shall ensure that any building or facility is utilized exclusively
for secular purposes and is made available to all person regardless of religion. If
ESGP funds are used to renovate, rehabilitate, or convert buildings owned by
primarily religious organization or entities, the SUBRECIPIENT shall comply with
the provisions of Title 24, Code of Federal Regulations, Part 575.21(b)(2).
(d) The SUBRECIPIENT shall comply with the Uniform Federal Accessibility Standards
(24 CFR, Part 40, Appendix "A"), when activities funded by the ESGP involve major
rehabilitation or conversion.
9. Maintenance as a Homeless Facilitv.
(a) The SUBRECIPIENT shall maintain any building for which ESGP funds are used for
not less than a three (3) year period, or for not less than a ten (10) year period if the
grant amounts are used for major rehabilitation or conversion of the building.
(b) The three (3) or ten (10) year periods begin to run, (i) on the date of initial occupancy
as an emergency shelter for the homeless when the building utilized was not operated
as an emergency shelter for the homeless before receiving ESGP funds, or; (ii) on the
date that ESGP funds are first obligated to the shelter when the building was operated
as an emergency shelter before receiving ESGP funds, or; (ii) on the date that ESGP
funds are first obligated to shelter when the building was operated as an emergency
shelter before receiving ESGP funds.
(c) When ESGP funds are used exclusively to provide essential services including, but not
limited to, services concerned with employment, physical or mental health, substance
abuse, education, food, equipment or furnishings, the time periods noted in (a) above
are not applicable.
10. Independent Capacity.
The SUBRECIPIENT, and its officers, employees and agents, shall act in an independent
capacity during the term of this Agreement and shall not act as, shall not be, nor shall they in
any manner be construed to be officers, employees, or agents of the CITY and/or the Agency
or the State of California.
5
,:~~P0natJ006-2007\20Q6.2007f.SG~Mcrp:_
11. Assilmabilitv.
The SUBRECIPIENT cannot assign any of its rights, duties or obligations pursuant to this
Agreement to any person or entity without the prior written consent of the CITY or the
Agency. This includes the ability to subcontract all, or a portion of, its rights, duties and
obligations hereunder.
12. Insurance.
The SUBRECIPIENT shall during the term of this Agreement:
(a) Procure and maintain Workers' Compensation Insurance as prescribed by the laws of
the State of California.
(b) Procure and maintain comprehensive general and automobile liability insurance as
shall protect the SUBRECIPIENT from claims for damages for personal injury,
including accidental and wrongful death, as well as from claims for property damage,
which may arise from activities or programs under this Agreement, whether such
activities or programs by the SUBRECIPIENT, by any subcontractor or by any
officer, employee or agent of either of them.
Such insurance shall name the CITY and the Agency, their officers, officials,
attorneys, agents, employees, volunteers and independent contractors as additional
insureds with respect to this Agreement and the obligations of the SUBRECIPIENT
hereunder. Such insurance shall provide for combined coverage limits of not less than
$1,000,000 per occurrence.
(c) Furnish the CITY and the Agency with policies of insurance, prior to request for first
reimbursement for ESGP funds showing that such insurance is in full force and effect,
and that the CITY and the Agency are named as additional insureds with respect to
this Agreement and the obligations of the SUBRECIPIENT hereunder. Further, said
policies shall contain the covenant of the insurance carrier that thirty (30) days written
notice will be given to the CITY and the Agency prior to modification, cancellation, or
reduction in coverage of such insurance.
13. Hold Harmless.
The SUBRECIPIENT shall indemnify and hold the CITY and the Agency, their officers,
officials, attorneys, agents, employees, volunteers and independent contractors free and
harmless from any liability whatsoever, including wrongful death, based or asserted upon any
act or omission of the SUBRECIPIENT, its officers, agents, employees and independent
contractors in any legal action based upon such alleged acts or omissions. The specific
insurance coverage required in Section 12 shall in no way limit or circumscribe the
SUBRECIPIENT'S obligation to indemnify and hold the CITY and the Agency harmless as
set forth in this Section 13.
6
,~flGnaU!SCi I'oraIII2OO6-202007ESG~Morf'.dDc
14. Federal Reauirement.
(a) The SUBRECIPIENT shall comply with the provlSlons of the Act, and any
amendments thereto, and the federal regulations and guidelines now or hereinafter
enacted pursuant to the Act. More particularly, the SUBRECIPIENT is to comply
with those regulations found in Part 575 of Title 24 of the Code of Federal Regulations
and OMB Circulars Numbered A-lIO and A-1I2, respectively, and appropriate
attachments for non-profit organization contractors.
(b) The SUBRECIPIENT represents that it is, or may be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by, or in connection with, a religious or denominational
institution or organization.
(c) The SUBRECIPIENT agrees that, in connection with the services to be provided
hereunder, (i) it will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or give preference
in employment to persons on the basis of religion; (ii) it will not discriminate against
any person applying for such services on the basis of religion and will not limit such
services or give preference to persons on the basis of religion; (iii) it will provide no
religious instruction or counseling, conduct no religious workshop or services, engage
in no religious proselytizing and exert no other religious influence in the provision of
such services; (iv) the portion of a facility used to provide services assisted, in whole
or in part, under this Agreement shall contain no sectarian or religious symbols or
decorations, and; (v) the funds received under this Agreement shall not be used to
construct, rehabilitate, or restore any facility which is owned by the SUBRECIPIENT
in which the services are to be provided; provided that, minor repairs may be made if
such repairs are directly related to the services; are located in a structure used
exclusively for non-religious purposes, and; constitute in dollar terms only a minor
portion of the ESGP expenditure for the public services.
(d) The SUBRECIPIENT shall comply with the Housing and Community Development
Act (HCD Act) of 1992 (Public Law 102-550, approved October 28, 1992), which
requires the involvement of, to the extent practicable, homeless individuals and
families and operating facilities assisted under the ESGP in providing services for
occupants of these facilities (42 U.S.C. 11375(c)(7), as added by Section 1402 (b)).
(e) The SUBRECIPIENT shall comply with HCD Act, Section 1402 (d), which requires
that termination of assistance to any individual or family be in accordance with a
formal process, which may include a hearing, established by the SUBRECIPIENT.
15. ComDliance with Law.
The SUBRECIPIENT shall comply with all federal, state and local laws and regulations
pertinent to its operation and services to be performed hereunder, and shall keep in effect any
and all licenses, permits, notices and certificates as are required thereby. The
SUBRECIPlENT shall further comply with all laws applicable to wages and hours of
employment, occupational safety and to fire safety, health and sanitation.
7
p:~FonuIESGI'onnI'JOll6.202OO1P.SG~Mqc_
16. Comprehensive Homeless Assistance Plan.
The SUBRECIPIENT shall cooperate with the CITY and the Agency in undertaking
emergency shelter grant activities and shall assist the CITY and the Agency in carrying out
the Comprehensive Homeless Assistance Plan and any other applicable strategies
implemented by the CITY and the Agency and shall act in conformity therewith.
17. Non-Discrimination and Equal Opportunity Compliance.
The SUBRECIPIENT hereby certifies compliance with the following:
(a) Executive Order Number 11246, as amended, and the regulations issued thereunder at
Title 41, Code of Federal Regulations, Chapter 60;
(b) Title VI and Title VII of the Civil Rights Act of 1964 (423 U.S.C. Section 2000(d) et.
seq.), as amended by the Equal Opportunity Act of March 24, 1972, (public Law
Number 92-261);
(c) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Sections 3601-3619) and
implementing regulations issued pursuant thereto (24 CFR, Part 1);
(d) Executive Order Number 11063 and implementing regulations issued pursuant thereto
(25 CFR, Part 107);
(e) Age Discrimination Act of 1975 (42 U.S.C., Sections 6101-6107);
(f) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C., Section 794), and;
(g) Executive Orders Numbered 11625, 12432 and 12138 consistent with HUD's
responsibilities under these Orders, the SUBRECIPIENT must make efforts to
encourage the use of minority and women owned business enterprises in connection
with ESGP activities;
(h) The SUBRECIPIENT shall establish and maintain a procedure through which
homeless individuals will be informed of the facilities and services available to all on
a nondiscriminatory basis.
(i) SUBRECIPIENT agrees to abide by, and include in any subcontracts to perform work
under this Agreement, the following clause:
"During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors shall not unlawfully discriminate against any employee or application
for employment because of race, religion, color, national origin, ancestry, physical
handicap, medical condition, marital status, age (over 40), or sex. The
SUBRECIPIENT and subcontractors shall ensure that the evaluation and treatment of
their employees and applications for employment are free of such discrimination.
8
p:\I'GnuI\IflIuIifonllslESGI'<lr-'2OO6-2CJO'1'JOO6..2007ESO ~McIp._
The SUBRECIPIENT and subcontractors shall comply with the provisions of the Fair
Employment and Housing Act (Government Code, Section 12900 et. seq.). The
applicable regulations of the Fair Employment and Housing Commission
implementing Government Code Section 12990, set forth in Chapter five (5) of
Division four (4) of Title two (2) of the California Administrative Code are
incorporated into this Agreement by reference and made a part hereof as if fully set
forth at length.
The SUBRECIPIENT and its subcontractors shall give written notice of their
obligations under this clause to labor organizations with which they have collective
bargaining or other agreement."
(j) The equal opportunity clause continued in Section 202 of Executive Order Number
11246, as amended, is hereby incorporated into this Agreement by this reference.
(k) During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors, if any, shall not deny the benefits rendered hereunder to any person on
the basis of religion, color, ethnic group identification, sex, age or physical or mental
disability.
(I) The SUBRECIPIENT shall furnish all information and reports as required by
Executive Order Number 11246, as amended.
(m) The SUBRECIPIENT shall include the non-discrimination and compliance provisions
of the equal opportunity clause in all subcontracts, if any.
18. Affirmative Action Compliance.
Each SUBRECIPIENT or subcontractor with less than fifty (50) employees shall comply with
Section 202, Part II, of Executive Order Number 11246, as amended. The SUBRECIPIENT
shaIl ensure that subcontractors, if any, faIling within the scope of this provision shall comply
in fuIl with the requirements thereof
19. ConDict ofInterest.
No person who is (i) an employee, agent, consultant, officer, or elected or appointed official
of the CITY, the Agency, state or the SUBRECIPIENT that receives ESGP funds and who
exercises or has exercised any functions or responsibilities with respect to assisted activities,
or; (ii) in a position to participate in a decision making process or gain inside information with
regard to such activities, may obtain a personal or financial interest or benefit from the
activity, or have an interest in any contract, subcontract or agreement with respect thereto, or
the proceeds thereunder, either for himself or herself or those with whom he or she has family
or business ties, during his or her tenure or for one (I) year thereafter.
20. Elieibilitv of Contractors and Subcontractors.
No ESGP funds aIlocated to the SUBRECIPIENT through this Agreement may be used,
directly or indirectly, to employ, award contracts to, or otherwise engage the services of, or
9
p:~FonuIESGf<nII\l0l)6.2<107\2O(l6-2OO1ES(l""""Mcrp.dot
purchase the goods of, or fund any contractor or subcontractor during any period of
debarment, suspension, or placement in ineligibility status under the provision of 24 CFR,
Part 4.
21. Lead Based Paint.
The SUBRECIPIENT and all subcontractors, if any, shall comply with the requirements, as
applicable, of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C., Section 4821-4846)
and implementing regulations issued pursuant thereto (24 CFR, Part 35).
22. Flood Insurance.
No site proposed on which renovation, major rehabilitation, or conversion of a building, is to
be assisted under this part, other than by grant amounts allocated to the state, may be located
in an area that has been identified by the Federal Emergency Management Agency as having
special flood hazards, unless the community in which the areas is situated is participating in
the National Flood Insurance Program and the regulations issued thereunder (44 CFR, Parts
59-79) or less than a year has passed since the Federal Emergency Management Agency
notification regarding such hazards, and the SUBRECIPIENT will ensure that flood insurance
on the structure is obtained in compliance with Section 102(a) of the Flood Disaster
Protection Act of 1973, (42 V.S.C., Section 4001 et. seq.).
23. Notice.
Any notices required or desired to be served by either party upon the other shall be addressed
to respective parties as set forth below (or to such other addresses as from time to time may be
designated, in writing, by the respective parties):
AS TO AGENCY:
AS TO SUBRECIPIENT:
Maggie Pacheco, Executive Director
Economic Development Agency
201 North "E" Street, Suite 301
San Bernardino CA 92401-1507
Velda Griffin, Executive Director
Option House, Inc.
P. O. Box 970
San Bernardino, CA 92402
24. Bindinl!: Successors.
The SUBRECIPIENT, its heirs, assigns and successors in interest shall be bound by all the
provisions contained in this Agreement, and all of the parties thereto shall be jointly and
severally liable hereunder.
25. Assurances.
The SUBRECIPIENT certifies that it has the legal authority to enter into and meet the
requirements of this Agreement.
10
P:~II'lInIIs'!!SG~2007ESGAw-lMqe.dol:
26. Lel!al Proceedinl!s.
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or othelWise
affect this Agreement between the parties it should be filed in San Bernardino County
Superior Court. The prevailing party shall be entitled to recover its reasonable legal fees.
The costs, salary and expenses of the City Attorney and members of his office in enforcing
this Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this section.
27. Entire Al!reement.
This Agreement is intended by the parties hereto as the final and exclusive expression of these
provisions contained in this Agreement and it supersedes and replaces any and all prior and
contemporaneous agreements and understandings, oral or written, in connection therewith.
This Agreement may be modified or changed only upon the written consent of the parties
hereto.
28. No Third Pam Beneficiaries.
IIII
IIII
IIII
IIII
IIII
IIII
IIII
IIII
IIII
IIII
IIII
IIII
IIII
No third party shall be deemed to have any rights hereunder against any of the parties hereto
as a result of this Agreement.
11
p:~I'lImI$\ESG~'N006-2OIl7ESG~Mcrp.dol:
IN WITNESS WHEREOF, the parties hereto have hereunto their hands and seals this day and
year first above written.
CITY OF SAN BERNARDINO
~1v--,.~
Pa 'ckJ.Mo 's,Mayor
ATTEST
~Hoo;e,Im.
2ml. ~-profit
Executi e Direct
City of San Bernardino
~h~
Rachel lark, City Clerk
Approved as to Form:
12
P:~fllnula(jFDrJIUIJOO6.~20071!SG""'-IMlrp_
--7 Pi1 I: 58
v
,
ESG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
SALVATION ARMY
AGREEMENT FOR USE OF EMERGENCY SHELTER GRANT FUNDS
THIS AGREEMENT, entered in this 1st day of July, 2006 by and between the CITY OF SAN
BERNARDINO, (hereinafter referred to as the "CITY") and Salvation Army, a California non-profit
corporation, (hereinafter referred to as the "SUB RECIPIENT");
WITNESSETH
WHEREAS, pursuant to Subtitle "B" of the Stewart B. McKinney Homeless Assistance Act
of 1987 (public Law 100-77), (hereinafter referred to as the "Act"), the CITY has been awarded
Emergency Shelter Grant Program ("ESGP") funds which are to be used to improve the quality of
existing emergency shelters for the homeless, to help make available additional emergency shelters,
and to help meet the costs of operating emergency shelters and of providing certain essential social
services to homeless individuals, and;
WHEREAS, the CITY desires to contract with nCln-profit corporatious for the use of ESGP
funds to provide various services for homeless individuals, and;
WHEREAS, the SUBRECIPIENT as a non-profit corporation, is eligible under the Act to
receive ESGP funds to provide those services as described herein.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
1. Term.
The term of this Agreement shall be for a period commencing on July I, 2006, and
terminating on June 30, 2007, or as otherwise provided for in Section 5 herein.
2. Scone of Services.
The SUBRECIPIENT promises and agrees to provide certain emergency shelter grant
program services for homeless persous by utilizing the sum of Sixty Five Thousand Dollars
($65,000.00) in ESGP funds, as set forth in the manner provided in Exhibit "A" which is
attached hereto, and by this reference, incorporated herein. The SUBRECIPIENT shall also
provide homeless individuals with assistance in obtaining (i) appropriate supportive services,
including permanent housing, physical and mental health treatment, couuseling, supervision,
and other services essential for achieving independent living, and; (ii) other federal, state,
local and private assistance provided hereunder shall be in full conformity with the Act, and
any amendments thereto, and the federal regulations and guidelines now, or hereinafter
enacted pursuant to the Act.
3. Matchinl! Funds.
The SUBRECIPIENT must supplement its emergency shelter grant amounts with an equal
amount of funds from sources other than those provided herein and from non-federal sources.
These funds must be provided after the date of the grant award to the SUBRECIPIENT. The
SUBRECIPIENT may comply with this requirement by providing the supplemental funds
itself, or voluntary efforts or gifts in kind provided to the SUBRECIPIENT, as appropriate.
I
P:\formI\HouIiaa FonnI\ESG F~\2006-200'7\2006-1OO7 BSG A&JccmcnI MaJC.doc
4. Calculatinl!: the Matchinl!: Amount.
In calculating the amount of supplemental funds, there may be included the value of any
donated material or building(s), the value of the lease(s) on the building(s); any salary paid to
staff of the SUBRECIPIENT, or to any State or non-profit recipient, as appropriate, in
carrying out the Emergency Shelter Grant Program; and the time and services contributed by
volunteers to carry out the ESGP, determined at the rate of $5.00 per hour. For purposes of
this Section 4, the SUBRECIPIENT upon concurrence of the Executive Director (the
"Administrator") of the Redevelopment Agency of the City of San Bernardino ("Agency"),
the Administrator of the ESG Program, will determine the value of any donated material or
building(s) or any lease(s), or furnishings and equipment using any method reasonably
calculated to establish a fair market value.
5. Termination.
(a) Either party may terminate this Agreement upon thirty (30) days prior written notice to
the other party.
(b) Notwithstanding the provisions of Section 5(a), the CITY may suspend or terminate
this Agreement forthwith for cause, upon written notice to the SUBRECIPIENT of the
action being taken. Cause shall be established, (i) in the event the SUBRECIPIENT
fails to perform the covenants herein contained; (ii) in the event there is a conflict with
any federal, state or local law, ordinance, regulation or rule rendering any of the
provisions of this Agreement invalid or untenable, or; (iii) in the event the funding
from the United States Department of Housing and Urban Development (HUD),
referred to in the recitals herein, is reduced, terminated or otherwise becomes
unavailable. The CITY shall provide written notice to the SUBRECIPIENT within ten
(10) working days from the date HUD reduces, suspends or terminates the ESGP
funding. This Agreement may, at the discretion of the Administrator of the CITY, be
either terminated or amended to reflect said reduction of funds.
(c) Upon termination of this Agreement, the SUBRECIPIENT agrees to return any
unencumbered funds which it has been provided by the CITY. In accepting said
funds, the CITY does not waive any claim or cause of action it may have against the
SUBRECIPIENT for breach of this Agreement.
(d) Upon termination of this Agreement, the SUBRECIPIENT shall not incur any
obligations after the effective date of such termination.
(e) Any provisions for inspection and audits relative to the expenditure of funds provided
for hereunder shall not be ended upon the date of any termination but shall continue
thereafter as specified herein.
(f) SUBRECIPIENT will be required to cooperate and work in collaboration with City
departments, to include but not limited to: Police Department, Fire Department and
Code Compliance and the Agency in an effort to promote the well-being of citizens
and aid in reduction of crime, blight and unsafe living conditions. From time to time,
2
P:~Fcnu'l!SGflInN\20ll6-2OlJ7I2OO6.2001ESG~_""'_
SUBRECIPIENT may be required to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 5. Termination. of this Agreement.
6. Pavment of Funds.
The Mayor and Common Council of the CITY shall determine the final disposition and
distribution of all funds received by the CITY under the Act. On behalf of the CITY, the
Agency shall make payments of ESGP funds to the SUBRECIPIENT for the purposes set
forth in Exhibit "A" and shall monitor the expenditure of funds and activities of the
SUBRECIPIENT to ensure compliance with applicable federal regulations and the terms of
this Agreement. The SUBRECIPIENT shall establish and maintain a separate account for all
ESGP funds received under this Agreement and deposit all such funds in said account.
All disbursements of ESGP funds by the Agency will be made in the following manner:
(a) Payments shall be made on a reimbursement basis and made within thirty (30) days
after the SUBRECIPIENT has submitted written notice identifying payments made
and requesting reimbursement. Payments shall be based on documented expenses by
the SUBRECIPIENT, for the purposes set forth in Exhibit "B" approved by the
Administrator, or his/her designee. The Agency shall reimburse on a monthly basis,
1/12 of the SUBRECIPIENT's ESGP funds.
(b) In no event shall the CITY or the Agency, or any of its officers, agents or employees,
be held liable for expenses incurred by the SUBRECIPIENT in excess of the ESGP
allocation noted in Section 2, entitled "Scope of Services."
(c) Payments may be withheld if, on a determination by the Administrator, the
SUBRECIPIENT has not complied with the covenants herein contained at such times,
and in such manner as provided in this Agreement.
(d) No later than thirty (30) days prior to the date se:t forth herein for termination of this
Agreement, the SUBRECIPIENT shall provide the CITY or Agency with its estimate
of the amount of funds which will remain unexpended upon such termination.
Notwithstanding any provisions contained in this Section 6, the Agency, through its
Administrator, shall thereafter, upon reasonable notice provide to the SUBRECIPIENT, have
the right to (i) reduce the payment of funds hereunder, (ii) renegotiate the actual levels of
expenditures in the event the SUBRECIPIENT's rate of expenditures will result in
unexpended funds at the expiration of this Agreement, and/or; (iii) re-program funds
associated with this Agreement in which the Administrator finds there has been no substantial
progress or activity.
3
P:~I~f'ormI\JOO6-2007\2006-2OO1ESG~MqI!.doe
7. Documentation. Reports. Inspections and Performance Evaluations.
(a) Documentation of Expenditures. All expenditures supported by properly executed
payrolls, time records, invoices, contracts, vouchers, receipts, orders and any other
accounting documentation pertaining, in whole or in part, to this Agreement, shall be
clearly identified and readily accessible. The SUBRECIPIENT shall maintain and
keep available all such documents for a period of not less than three (3) years from the
termination of this Agreement, if a CITY, Agency, state and/or federal audit has
occurred within six (6) months prior to date of termination, and for a period of not less
than five (5) years from said date if such audit has not occurred. In the event of audit
exception, such documentation shall be maintained until every exception has been
cleared to the satisfaction of the auditing authority.
(b) Reports. The SUBRECIPIENT, at such times and on such forms as the Agency may
require, shall furnish the Agency such statements, records, reports, data and
information as the Agency may request pertaining to its performance of services
hereunder and other matters covered by this Agreement. The SUBRECIPIENT shall
establish and maintain records in accordance with the Office of Management and
Budget (OMB) Circulars Numbered A-lIO and A-1I2, respectively, as applicable to
the acceptance and use of emergency shelter grants.
(c) Inspections. The SUBRECIPIENT shall make available to the CITY and/or Agency,
state and/or federal officials its records and data with respect to all matters covered by
this Agreement for inspection and audit, which inspection and audit may be made at
any time after reasonable notice. The SUBRECIPIENT shall comply with the audit
requirements of OMB Circular Number A-IIO, as applicable, and as they relate to the
acceptance and use of federal funds under this Agreement.
(d) Performance Evaluations. The SUBRECIPIENT shall permit CITY and/or Agency,
state and/or federal officials to monitor, assess or evaluate the SUBRECIPIENT's
performance under this Agreement on at least a monthly basis, said monitoring,
assessment or evaluation to include, but not be limited to, audits, inventory,
inspections within the program area, and interviews with the SUBRECIPIENT's
employees, agents, independent contractors and subcontractors, providing the services
under this Agreement and recipients thereof.
(e) This Agreement contemplates that the SUBRECIPIENT will pay salaries, utilities and
furnishings with the monies provided in accordance with Exhibit "B" and Section 2
Scope of Services, of this Agreement.
8. Buildinl! or Facilitv.
(a) Any building for which emergency shelter grant amounts are used for renovation,
conversion, or major rehabilitation, must meet local safety and sanitation standards.
(b) When ESGP funds are utilized to provide emergency shelter for the homeless in hotels
or motels or other commercial facilities providing transient housing, (i) the
SUBRECIPIENT, at the request of the CITY and/or Agency, shall execute an
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Agreement with the provider of such housing which provides that comparable living
space, in terms of quality, available in the facility for use as emergency shelters for at
least the same period of time as provided in Section 9 herein, and; (ii) leases
negotiated between the SUBRECIPIENT and the provider of such housing shall make
available such living space at substantially less than the daily room rate otherwise
charged by the facility and; (iii) the SUBRECIPIENT shall certify, in writing, to CITY
and/or Agency that it has considered using other facilities as emergency shelter for the
homeless in the City.
(c) The SUBRECIPIENT shall ensure that any building or facility is utilized exclusively
for secular purposes and is made available to all person regardless of religion. If
ESGP funds are used to renovate, rehabilitate, or convert buildings owned by
primarily religious organization or entities, the SUBRECIPIENT shall comply with
the provisions of Title 24, Code of Federal Regulations, Part 575.21(b)(2).
(d) The SUBRECIPIENT shall comply with the Uniform Federal Accessibility Standards
(24 CFR, Part 40, Appendix "A"), when activities funded by the ESGP involve major
rehabilitation or conversion.
9. Maintenance as a Homeless Facilitv.
(a) The SUBRECIPIENT shall maintain any building for which ESGP funds are used for
not less than a three (3) year period, or for not less than a ten (10) year period if the
grant amounts are used for major rehabilitation or conversion of the building.
(b) The three (3) or ten (10) year periods begin to run, (i) on the date of initial occupancy
as an emergency shelter for the homeless when the building utilized was not operated
as an emergency shelter for the homeless before receiving ESGP funds, or; (ii) on the
date that ESGP funds are first obligated to the shelter when the building was operated
as an emergency shelter before receiving ESGP funds, or; (ii) on the date that ESGP
funds are first obligated to shelter when the building was operated as an emergency
shelter before receiving ESGP funds.
(c) When ESGP funds are used exclusively to provide essential services including, but not
limited to, services concerned with employment, physical or mental health, substance
abuse, education, food, equipment or furnishings, the time periods noted in (a) above
are not applicable.
10. Independent Capacity.
The SUBRECIPIENT, and its officers, employees and agents, shall act in an independent
capacity during the term of this Agreement and shall not act as, shall not be, nor shall they in
any manner be construed to be officers, employees, or agents of the CITY and/or the Agency
or the State of California.
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11. Asshmabilitv.
The SUBRECIPIENT cannot assign any of its rights, duties or obligations pursuant to this
Agreement to any person or entity without the prior written consent of the CITY or the
Agency. This includes the ability to subcontract all, or a portion of, its rights, duties and
obligations hereunder.
12. Insurance.
The SUBRECIPIENT shall during the term of this Agreement:
(a) Procure and maintain Workers' Compensation Insurance as prescribed by the laws of
the State of California.
(b) Procure and maintain comprehensive general and automobile liability insurance as
shall protect the SUBRECIPIENT from claims for damages for personal injury,
including accidental and wrongful death, as well as from claims for property damage,
which may arise from activities or programs under this Agreement, whether such
activities or programs by the SUBRECIPIENT, by any subcontractor or by any
officer, employee or agent of either of them.
Such insurance shall name the CITY and the Agency, their officers, officials,
attorneys, agents, employees, volunteers and independent contractors as additional
insureds with respect to this Agreement and the obligations of the SUBRECIPIENT
hereunder. Such insurance shall provide for combined coverage limits of not less than
$1,000,000 per occurrence.
(c) Furnish the CITY and the Agency with policies of insurance, prior to request for first
reimbursement for ESGP funds showing that such insurance is in full force and effect,
and that the CITY and the Agency are named as additional insureds with respect to
this Agreement and the obligations of the SUBRECIPIENT hereunder. Further, said
policies shall contain the covenant of the insurance carrier that thirty (30) days written
notice will be given to the CITY and the Agency prior to modification, cancellation, or
reduction in coverage of such insurance.
13. Hold Harmless.
The SUBRECIPIENT shall indemnify and hold the CITY and the Agency, their officers,
officials, attorneys, agents, employees, volunteers and independent contractors free and
harmless from any liability whatsoever, including wrongful death, based or asserted upon any
act or omission of the SUBRECIPIENT, its officers, agents, employees and independent
contractors in any legal action based upon such alleged acts or omissions. The specific
insurance coverage required in Section 12 shall in no way limit or circumscribe the
SUBRECIPIENT'S obligation to indemnify and hold the CITY and the Agency harmless as
set forth in this Section 13.
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14. Federal ReQuirement.
(a) The SUBRECIPIENT shall comply with the proVIsIOns of the Act, and any
amendments thereto, and the federal regulations and guidelines now or hereinafter
enacted pursuant to the Act. More particularly, the SUBRECIPIENT is to comply
with those regulations found in Part 575 ofTitIe 24 of the Code of Federal Regulations
and OMB Circulars Numbered A-lIO and A-1I2, respectively, and appropriate
attachments for non-profit organization contractors.
(b) The SUBRECIPIENT represents that it is, or may be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by, or in connection with, a religious or denominational
institution or organization.
(c) The SUBRECIPIENT agrees that, in connection with the services to be provided
hereunder, (i) it will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or give preference
in employment to persons on the basis of religion; (ii) it will not discriminate against
any person applying for such services on the basis of religion and will not limit such
services or give preference to persons on the basis of religion; (iii) it will provide no
religious instruction or counseling, conduct no religious workshop or services, engage
in no religious proselytizing and exert no other religious influence in the provision of
such services; (iv) the portion of a facility used to provide services assisted, in whole
or in part, under this Agreement shall contain no sectarian or religious symbols or
decorations, and; (v) the funds received under this Agreement shall not be used to
construct, rehabilitate, or restore any facility which is owned by the SUBRECIPIENT
in which the services are to be provided; provided that, minor repairs may be made if
such repairs are directly related to the services; are located in a structure used
exclusively for non-religious purposes, and; constitute in dollar terms only a minor
portion of the ESGP expenditure for the public services.
(d) The SUBRECIPIENT shall comply with the Housing and Community Development
Act (HCD Act) of 1992 (Public Law 102-550, approved October 28, 1992), which
requires the involvement of, to the extent practicable, homeless individuals and
families and operating facilities assisted under the ESGP in providing services for
occupants of these facilities (42 U.S.C. I 1375(c)(7), as added by Section 1402 (b)).
(e) The SUBRECIPIENT shall comply with HCD Act, Section 1402 (d), which requires
that termination of assistance to any individual or family be in accordance with a
formal process, which may include a hearing, established by the SUBRECIPIENT.
15. Compliance with Law.
The SUBRECIPIENT shall comply with all federal, state and local laws and regulations
pertinent to its operation and services to be performed hereunder, and shall keep in effect any
and all licenses, permits, notices and certificates as are required thereby. The
SUBRECIPIENT shall further comply with all laws applicable to wages and hours of
employment, occupational safety and to fire safety, health and sanitation.
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P:~PonuIESOI'onIu'JOO6.200N006-2007ESG~tdap_
16. Comprehensive Homeless Assistance Plan.
The SUBRECIPIENT shall cooperate with the CITY and the Agency in undertaking
emergency shelter grant activities and shall assist the CITY and the Agency in carrying out
the Comprehensive Homeless Assistance Plan and any other applicable strategies
implemented by the CITY and the Agency and shall act in conformity therewith.
17. Non-Discrimination and Eaual Opportunitv Compliance.
The SUBRECIPIENT hereby certifies compliance with the following:
(a) Executive Order Number 11246, as amended, and the regulations issued thereunder at
Title 41, Code of Federal Regulations, Chapter 60;
(b) Title VI and Title VII of the Civil Rights Act of 1964 (423 U.S.C. Section 2000(d) et.
seq.), as amended by the Equal Opportunity Act of March 24, 1972, (Public Law
Number 92-261);
(c) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. Sections 3601-3619) and
implementing regulations issued pursuant thereto (24 CFR, Part I);
(d) Executive Order Number 11063 and implementing regulations issued pursuant thereto
(25 CFR, Part 107);
(e) Age Discrimination Act ofl975 (42 U.S.C., Sections 6101-6107);
(f) Section 504 ofthe Rehabilitation Act of 1973 (29 U.S.C., Section 794), and;
(g) Executive Orders Numbered 11625, 12432 and 12138 consistent with HUD's
responsibilities under these Orders, the SUBRECIPIENT must make efforts to
encourage the use of minority and women owned business enterprises in connection
with ESGP activities;
(h) The SUBRECIPIENT shall establish and maintain a procedure through which
homeless individuals will be informed of the facilities and services available to all on
a nondiscriminatory basis.
(i) SUBRECIPIENT agrees to abide by, and include in any subcontracts to perform work
under this Agreement, the following clause:
"During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors shall not unlawfully discriminate against any employee or application
for employment because of race, religion, color, national origin, ancestry, physical
handicap, medical condition, marital status, age (over 40), or sex. The
SUBRECIPIENT and subcontractors shall ensure that the evaluation and treatment of
their employees and applications for employment are free of such discrimination.
8
P:~I'<Inas~ F-'2006-200712006-2OO1ESG....-Mqe.doe
The SUBRECIPIENT and subcontractors shall comply with the provisions of the Fair
Employment and Housing Act (Government Code, Section 12900 et. seq.). The
applicable regulations of the Fair Employment and Housing Commission
implementing Government Code Section 12990, set forth in Chapter five (5) of
Division four (4) of Title two (2) of the California Administrative Code are
incorporated into this Agreement by reference and made a part hereof as if fully set
forth at length.
The SUBRECIPIENT and its subcontractors shall give written notice of their
obligations under this clause to labor organizations with which they have collective
bargaining or other agreement."
(j) The equal opportunity clause continued in Section 202 of Executive Order Number
11246, as amended, is hereby incorporated into this Agreement by this reference.
(k) During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors, if any, shall not deny the benefits rendered hereunder to any person on
the basis of religion, color, ethnic group identification, sex, age or physical or mental
disability.
(I) The SUBRECIPIENT shall furnish all information and reports as required by
Executive Order Number 11246, as amended.
(m) The SUBRECIPIENT shall include the non-discrimination and compliance provisions
of the equal opportunity clause in all subcontracts, if any.
18. Mfirmative Action Compliance.
Each SUBRECIPIENT or subcontractor with less than fifty (50) employees shall comply with
Section 202, Part II, of Executive Order Number 11246, as amended. The SUBRECIPIENT
shall ensure that subcontractors, if any, falling within the scope of this provision shall comply
in full with the requirements thereof
19. Conflict ofInterest.
No person who is (i) an employee, agent, consultant, officer, or elected or appointed official
of the CITY, the Agency, state or the SUBRECIPIENT that receives ESGP funds and who
exercises or has exercised any functions or responsibilities with respect to assisted activities,
or; (ii) in a position to participate in a decision making process or gain inside information with
regard to such activities, may obtain a personal or financial interest or benefit from the
activity, or have an interest in any contract, subcontract or agreement with respect thereto, or
the proceeds thereunder, either for himself or herself or those with whom he or she has family
or business ties, during his or her tenure or for one (I) year thereafter.
20. Elil!ibilitv of Contractors and Subcontractors.
No ESGP funds allocated to the SUBRECIPIENT through this Agreement may be used,
directly or indirectly, to employ, award contracts to, or otherwise engage the services of, or
9
p:~Formt.ESGF0nn\2006-2007\2006-2OO1ESG~eDlMqe.doc:
purchase the goods of, or fund any contractor or subcontractor during any period of
debarment, suspension, or placement in ineligibility status under the provision of 24 CFR,
Part 4.
21. Lead Based Paint.
The SUBRECIPIENT and all subcontractors, if any, shall comply with the requirements, as
applicable, of the Lead-Based Paint Poisoning Prevention Act (42 V.S.C., Section 4821-4846)
and implementing regulations issued pursuant thereto (24 CFR, Part 35).
22. Flood Insurance.
No site proposed on which renovation, major rehabilitation, or conversion of a building, is to
be assisted under this part, other than by grant amounts allocated to the state, may be located
in an area that has been identified by the Federal Emergency Management Agency as having
special flood hazards, unless the community in which the areas is situated is participating in
the National Flood Insurance Program and the regulations issued thereunder (44 CFR, Parts
59-79) or less than a year has passed since the Federal Emergency Management Agency
notification regarding such hazards, and the SUBRECIPIENT will ensure that flood insurance
on the structure is obtained in compliance with Section 102(a) of the Flood Disaster
Protection Act of 1973, (42 V.S.C., Section 4001 et. seq.).
23. Notice.
Any notices required or desired to be served by either party upon the other shall be addressed
to respective parties as set forth below (or to such other addresses as from time to time may be
designated, in writing, by the respective parties):
AS TO AGENCY:
AS TO SUBRECIPIENT:
Maggie Pacheco, Executive Director
Economic Development Agency
201 North "E" Street, Suite 301
San Bernardino CA 92401-1507
Major Russell Fritz, Executive Director
Salvation Army
845 West Kingman
San Bernardino, CA 92410
24. Bindinl! Successors.
The SUBRECIPIENT, its heirs, assigns and successors in interest shall be bound by all the
provisions contained in this Agreement, and all of the parties thereto shall be jointly and
severally liable hereunder.
25. Assurances.
The SUBRECIPIENT certifies that it has the legal authority to enter into and meet the
requirements of this Agreement.
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26. Le2al Proceedin2s.
Should any legal proceedings be corrunenced to enforce, enjoin, or collect funds or otherwise
affect this Agreement between the parties it should be filed in San Bernardino County
Superior Court. The prevailing party shall be entitled to recover its reasonable legal fees.
The costs, salary and expenses of the City Attorney and members of his office in enforcing
this Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this section.
27. Entire A2reement.
This Agreement is intended by the parties hereto as the final and exclusive expression of these
provisions contained in this Agreement and it supersedes and replaces any and all prior and
contemporaneous agreements and understandings, oral or written, in connection therewith.
This Agreement may be modified or changed only upon the written consent of the parties
hereto.
28. No Third Party Beneficiaries.
IIII
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No third party shall be deemed to have any rights hereunder against any of the parties hereto
as a result of this Agreement.
~Ponu\ESGI'GnnI\2OO6-2OO7I2OO6-2OO71!SG~Mtqe.doc
11
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IN WITNESS WHEREOF, the parties hereto have hereunto their hands and seals this day and
year first above written.
Sa1vatirnAnny
a California non-profit corporation
~~
CITY OF SAN BERNARDINO
~.~
Patri J. Mom ,Mayor
ATTEST
City of San Bernardino
~~~
Rachel Clark, City Clerk
Approved as to Form:
II~
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p,~lUm\ESGFo:nuI2OO6-2OO7\2Oll2007ESG~Mqe.daI;
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
BOY'S & GIRLS CLUB OF SAN BERNARDINO
TABLE OF CONTENTS
OPERATIVE PROViSIONS.........................................................................................................................................1
I. Scope of Services ............................................................................................................................................1
2. Time of Performance ................. ..................................... ........................ .............. ...... .....................................1
3. Compensation and Method of Payment........................................................................................... ................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affirmative Action ........ ....................................... .................. .............. ................ ............ .......... .....................2
6. Discrimination .................................... ................. ....... .................... ........................ ............................. ............2
7. Accounting ................................... ..... ........... .......... ....... ............................... ............. ...................... ................2
8. Budget Section ...... ...................... .................................. .............................. ............ ..... ................ ...................3
9. Non-Expendable Property ......... ............. .......................... ............................. ................ ............. .................. ...3
10. Expendable Personal Property ............................................ ........................... ................ ............ ......................3
II. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Funding.............. ........... ...... ................. ............. .................. .............. ............. ....................... ..................4
15. Notices........................................................................... ................................. ........................ .........................4
16. Assignment ................... ......................................................... ....................... ............................................. ...... 5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ................ .................... ........................................................... ...............................................6
19. Reversion of Assets ........... ....................... ........................................................ ............................................... 6
20. Fiscal Limitations .................. ........ ........... ....... ............ ............... ....................... ..................................... ......... 6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Harmless.................................................................................................7
23. Insurance Requirements ................................................... .......... ............... ........................... .................. ......... 7
24. Conflict of Interest............. ................... ................................ ......................... ................. ...................... ...........9
25. Budget Modifications ..... ............................................ ............ ......................... ........................... ..................... 9
26. Time of Performance Modifications..... ...................... ................ ...... ............................. ............ ......................9
27. Independent Contractor .................................................................................................................................10
28. Amendments; Variations......... ............... ........ ............................ ...... ................ ................................. ............ 10
29. Purchase and Invoice Deadlines ....................................................................................................................10
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Monitoring ......................................................................................................................................1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds.................. .................................. ............... ..................... ................ .................................. ..... ...11
34. Religious Proselytizing or Political Activities...............................................................................................II
35. Audits .............................. .............................................................................. ........................... ............... ...... 12
36. Counterparts .................... ...................... .............................. .......................... .................. ......... ......... ............ 13
37. Status of the Subrecipient..............................................................................................................................13
38. Legal Proceedings .........................................................................................................................................13
39. Exhibits.................................... .............. .......................................................... ................... ...... ..................... 13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project ActivitylDescription
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Conunitment
Schedule of Payments/Request for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 1 sl day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Boy's & Girls Club of
San Bernardino, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "1" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Eleven Thousand Dollars ($11,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement. . Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference. All
1
Requests for Reimbursement shall be submitted on a monthly basis in accordance with HUD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Summary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result ofthis program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
2
8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Sununary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-Exoendable Prooertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Exoendable Personal Prooertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
II. Purchase or Lease ofNon-Exoendable Prooertv or Eauioment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
3
Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
Sail Bernardino, California 92401
4
To the Subrecipient:
Clifford Hackney
Boy's & Girls Club of San Bernardino
1180 West Ninth Street
San Bernardino, CA 92411
16. Assignment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or his/her designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indenmification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reouirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of $1 ,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
7
r-
single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
I. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
8
24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgranteeslsubcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notifY the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Sub recipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
9
e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition of Supplies and Eauipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reports
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious Proselvtizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
11
a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. Ifindications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
12
36. Counteroarts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the SubreciDient
This Agreement shall not become effective until such time as the Director or his/her
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it wi\l take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
IIII
IIII
IIII
IIII
IIII
IIII
IIII
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or his/her designee has reviewed and approved the form and
content of each exhibit.
\3
r
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
B
ATTEST:
By: ~h.~
Rachel lark, City Clerk
Approved as to Form:
SUBRECIPIENT
Boy's & Girls Club of San Bernardino
14
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CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
CENTRAL CITY LUTHERAN MISSION
TABLE OF CONTENTS
OPERATIVE PROVISIONS.........................................................................................................................................1
I. Scope of Services .......................................... ............................................. ......................................... ............1
2. Time ofPerfonnance ......................................... ....................................... ................................. ......................1
3. Compensation and Method of Payment....................................................................................... ....................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affrrmative Action ............... ......... ................ ........................... ................ ........... ............................................2
6. Discrimination.................................................................................................................................................2
7. Accounting ... ...... ......... ................................. ........................... ............... .......... ...............................................2
8. Budget Section ...................................... .................................. ............. ............................ ....................... ........3
9. Non-Expendable Property ...................... ............................... .............. ............................................... .............3
10. Expendable Personal Property .............. .............................. .................. ........... ........... ......................... ........ ....3
II. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Funding..... ......... ................................................. ...... ............... .............. .................................................4
IS. Notices................................................. ............................... ................ ............ .................................................4
16. Assignment........................................................................ ............................ ....................... ...........................5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ........................................................ .................. ................ ........................................ ............6
19. Reversion of Assets .........................................................................................................................................6
20. Fiscal Limitations .................................................................... ........................................................................6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Harm1ess.................................................................................................7
23. Insurance Requirements ...... ............................. ........................ .............. ................. .......................... .............. 7
24. Conflict of Interest........... ............ ..................... .......................... ............... .............. .......................... ..............9
25. Budget Modifications ........... .............. ........ ............................. ............... ............. ...................................... ...... 9
26. Time of Performance Modifications...... ...... ...................... ...... ............. ............. .................................. ............9
27. Independent Contractor. ..... ...... ................ ............................. ............. .............. .............. ........... ......... ...........10
28. Amendments; Variations ....................... ....................... ....... .......... ................... ................. ......... ................... 10
29. Purchase and Invoice Deadlines ....................................................................................................................1 0
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Progrsm Monitoring ......................................................................................................................................10
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds................................. ...................... ........................ ............ ............ .................................... .......11
34. Religious Proselytizing or Political Activities...............................................................................................II
35. Audits .................................... ......... .............. ........................... .......................... .............. ....... ...... ..... ............12
36. Counterparts .................... ........ ....................... ................. ...... .............. ........... ............ .................. ................. 13
37. Status of the Subrecipient ........................... .................... ................... ........... ............. ....................................13
38. Legal Proceedings .................................. ......................................... .......... .............. ......................................13
39. Exbibits..........................................................................................................................................................13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBITS
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project ActivitylDescription
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Connnitment
Schedule ofPayments/Request for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this I st day of july, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Central City Lutheran
Mission, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality oflife of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit oflow- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scone of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July I, 2006, and shall be completed
no later than June 30, 2007.
3. Comnensation and Method ofPavment
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Ten Thousand Dollars ($10,000.00) which the Mayor and Common Council
approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall constitute
full and complete compensation for performance by the Subrecipient of the Services under
this Agreement. Method of payment shall be in the form of a Request for Reimbursement in
accordance with the terms and conditions set forth on Exhibit "6" to this Agreement, a copy
of which is attached hereto and incorporated herein by this reference. All Requests for
I
AGREEMENT
This Agreement is entered into this 1 st day of July, 2006, by and between the City of San
Bemardino, a municipal corporation, hereinafter referred to as the "City" and Central City Lutheran
Mission, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality ofIife of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
I. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavment
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Ten Thousand Dollars ($10,000.00) which the Mayor and Common Council
approved as part of the Fiscal Year 2005/2006 CDBG budget. Said payment shall constitute
full and complete compensation for performance by the Subrecipient of the Services under
this Agreement. Method of payment shall be in the form of a Request for Reimbursement in
accordance with the terms and conditions set forth on Exhibit "6" to this Agreement, a copy
of which is attached hereto and incorporated herein by this reference. All Requests for
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Reimbursement shall be submitted on a monthly basis in accordance with HUD regulations
"Audit Ready." The Redevelopment Agency of the City of San Bernardino (the "Agency")
on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total allocation
beginning the month of July 2006. Verifiable supporting documentation of expenditures for
services rendered, plus proof of payment all acceptable to the City in the sole discretion of
the City shall be submitted prior to any payment by the City to the Subrecipient. Supporting
statements shall give the total of said monthly expenses and shall also itemize the same in
detail conforming to the Budget Summary set forth on Exhibit "2". After timely receipt of
each supporting statement, the City will draw a warrant within thirty (30) days in favor of the
Subrecipient for the total amount of the Request for Reimbursement approved by the City.
The City will reject and return reimbursement requests not properly and/or completely
submitted.
4. Comnliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or his/her Designee.
9. Non-Expendable Property
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (1) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or his/her designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal Property
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
11. Purchase or Lease of Non-Expendable Property or Eauipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's tate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
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To the Subrecipient:
Reverend David Kalke
Central City Lutheran Mission
1354 North "G" Street
San Bernardino, CA 92405
16. Assignment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
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the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs. Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
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order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or his/her designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or his/her designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient of his /her intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of$I,OOO,OOO limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum ofthree, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations goveming conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgranteeslsubcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition of Supplies and Eauipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the plarmed program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reoorts
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious ProselYtizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (1) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counteroarts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecipient
This Agreement shall not become effective until such time as the Director or his/her
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
IIII
IIII
IIII
IIII
IIII
IIII
IIII
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or his/her designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Central City Lutheran Miss'on
o ,. -'-
By:
For Central City Lut ran Mission
ATTEST:
By:~~h.~
Rache Clark, City Clerk
Approved as to Form:
14
ESG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
CENTRAL CITY LUTHERAN MISSION
AGREEMENT FOR USE OF EMERGENCY SHELTER GRANT FUNDS
THIS AGREEMENT, entered in this 1st day of July, 2006 by and between the CITY OF SAN
BERNARDINO, (hereinafter referred to as the "CITyn) and Central City Lutheran Mission, a
California non-profit corporation, (hereinafter referred to as the "SUBRECIPIENTn);
WITNESSETH
WHEREAS, pursuant to Subtitle nBn of the Stewart B. McKinney Homeless Assistance Act
of 1987 (public Law 100-77), (hereinafter referred to as the "Act"), the CITY has been awarded
Emergency Shelter Grant Program (nESGP") funds which are to be used to improve the quality of
existing emergency shelters for the homeless, to help make available additional emergency shelters,
and to help meet the costs of operating emergency shelters and of providing certain essential social
services to homeless individuals, and;
WHEREAS, the CITY desires to contract with non-profit corporations for the use of ESGP
funds to provide various services for homeless individuals, and;
WHEREAS, the SUBRECIPIENT as a non-profit corporation, is eligible under the Act to
receive ESGP funds to provide those services as described herein.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
1. Term.
The term of this Agreement shall be for a period commencing on July 1, 2006, and
terminating on June 30, 2007, or as otherwise provided for in Section 5 herein.
2. Scope of Services.
The SUBRECIPIENT promises and agrees to provide certain emergency shelter grant
program services for homeless persons by utilizing the sum of Twelve Thousand Dollars
($12,000.00) in ESGP funds, as set forth in the manner provided in Exhibit "A" which is
attached hereto, and by this reference, incorporated herein. The SUBRECIPIENT shall also
provide homeless individuals with assistance in obtaining (i) appropriate supportive services,
including permanent housing, physical and mental health treatment, counseling, supervision,
and other services essential for achieving independent living, and; (ii) other federal, state,
local and private assistance provided hereunder shall be in full conformity with the Act, and
any amendments thereto, and the federal regulations and guidelines now, or hereinafter
enacted pursuant to the Act.
3. Matchin!! Funds.
The SUBRECIPIENT must supplement its emergency shelter grant amounts with an equal
amount of funds from sources other than those provided herein and from non-federal sources.
These funds must be provided after the date of the grant award to the SUBRECIPIENT. The
SUBRECIPIENT may comply with this requirement by providing the supplemental funds
itself, or voluntary efforts or gifts in kind provided to the SUBRECIPIENT, as appropriate.
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4. Calculatinl!: the Matchinl!: Amount.
In calculating the amount of supplemental funds, there may be included the value of any
donated material or building(s), the value of the lease(s) on the building(s); any salary paid to
staff of the SUBRECIPIENT, or to any State or non-profit recipient, as appropriate, in
carrying out the Emergency Shelter Grant Program; and the time and services contributed by
volunteers to carry out the ESGP, determined at the rate of $5.00 per hour. For purposes of
this Section 4, the SUBRECIPIENT upon concurrence of the Executive Director (the
"Administrator") of the Redevelopment Agency of the City of San Bernardino ("Agency"),
the Administrator of the ESG Program, will determine the value of any donated material or
building(s) or any lease(s), or furnishings and equipment using any method reasonably
calculated to establish a fair market value.
5. Termination.
(a) Either party may terminate this Agreement upon thirty (30) days prior written notice to
the other party.
(b) Notwithstanding the provisions of Section 5(a), the CITY may suspend or terminate
this Agreement forthwith for cause, upon written notice to the SUBRECIPIENT of the
action being taken. Cause shall be established, (i) in the event the SUBRECIPIENT
fails to perform the covenants herein contained; (ii) in the event there is a conflict with
any federal, state or local law, ordinance, regulation or rule rendering any of the
provisions of this Agreement invalid or untenable, or; (iii) in the event the funding
from the United States Department of Housing and Urban Development (HUD),
referred to in the recitals herein, is reduced, terminated or otherwise becomes
unavailable. The CITY shall provide written notice to the SUBRECIPIENT within ten
(10) working days from the date HUD reduces, suspends or terminates the ESGP
funding. This Agreement may, at the discretion of the Administrator of the CITY, be
either terminated or amended to reflect said reduction of funds.
(c) Upon termination of this Agreement, the SUBRECIPIENT agrees to return any
unencumbered funds which it has been provided by the CITY. In accepting said
funds, the CITY does not waive any claim or cause of action it may have against the
SUBRECIPIENT for breach of this Agreement.
(d) Upon termination of this Agreement, the SUBRECIPIENT shall not IDCur any
obligations after the effective date of such termination.
(e) Any provisions for inspection and audits relative to the expenditure of funds provided
for hereunder shall not be ended upon the date of any termination but shall continue
thereafter as specified herein.
(t) SUBRECIPIENT will be required to cooperate and work in collaboration with City
departments, to include but not limited to: Police Department, Fire Department and
Code Compliance and the Agency in an effort to promote the well-being of citizens
and aid in reduction of crime, blight and unsafe living conditions. From time to time,
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SUBRECIPIENT may be required to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 5. Termination. of this Agreement.
6. Payment of Funds.
The Mayor and Common Council of the CITY shall determine the final disposition and
distribution of all funds received by the CITY under the Act. On behalf of the CITY, the
Agency shall make payments of ESGP funds to the SUBRECIPIENT for the purposes set
forth in Exhibit "A" and shall monitor the expenditure of funds and activities of the
SUBRECIPIENT to ensure compliance with applicable federal regulations and the terms of
this Agreement. The SUBRECIPIENT shall establish and maintain a separate account for all
ESGP funds received under this Agreement and deposit all such funds in said account.
All disbursements of ESGP funds by the Agency will be made in the following manner:
(a) Payments shall be made on a reimbursement basis and made within thirty (30) days
after the SUBRECIPIENT has submitted written notice identifying payments made
and requesting reimbursement. Payments shall be based on documented expenses by
the SUBRECIPIENT, for the purposes set forth in Exhibit "B" approved by the
Administrator, or hislher designee. The Agency shall reimburse on a monthly basis,
1/12 of the SUBRECIPIENT's ESGP funds.
(b) In no event shall the CITY or the Agency, or any of its officers, agents or employees,
be held liable for expenses incurred by the SUBRECIPIENT in excess of the ESGP
allocation noted in Section 2, entitled "Scope of Services."
(c) Payments may be withheld if, on a determination by the Administrator, the
SUBRECIPIENT has not complied with the covenants herein contained at such times,
and in such manner as provided in this Agreement.
(d) No later than thirty (30) days prior to the date set forth herein for termination of this
Agreement, the SUBRECIPIENT shall provide the CITY or Agency with its estimate
of the amount of funds which will remain unexpended upon such termination.
Notwithstanding any provisions contained in this Section 6, the Agency, through its
Administrator, shall thereafter, upon reasonable notice provide to the SUBRECIPIENT, have
the right to (i) reduce the payment of funds hereunder, (ii) renegotiate the actual levels of
expenditures in the event the SUBRECIPIENT's rate of expenditures will result in
unexpended funds at the expiration of this Agreement, and/or; (iii) re-program funds
associated with this Agreement in which the Administrator finds there has been no substantial
progress or activity.
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7. Documentation. ReDorts. InsDections and Performance Evaluations.
(a) Documentation of Exoenditures. All expenditures supported by properly executed
payrolls, time records, invoices, contracts, vouchers, receipts, orders and any other
accounting documentation pertaining, in whole or in part, to this Agreement, shall be
clearly identified and readily accessible. The SUBRECIPIENT shall maintain and
keep available all such documents for a period of not less than three (3) years from the
termination of this Agreement, if a CITY, Agency, state and/or federal audit has
occurred within six (6) months prior to date of termination, and for a period of not less
than five (5) years from said date if such audit has not occurred. In the event of audit
exception, such documentation shall be maintained until every exception has been
cleared to the satisfaction of the auditing authority.
(b) Reoorts. The SUBRECIPIENT, at such times and on such forms as the Agency may
require, shall furnish the Agency such statements, records, reports, data and
information as the Agency may request pertaining to its performance of services
hereunder and other matters covered by this Agreement. The SUBRECIPIENT shall
establish and maintain records in accordance with the Office of Management and
Budget (OMB) Circulars Numbered A-1l0 and A-1l2, respectively, as applicable to
the acceptance and use of emergency shelter grants.
(c) Insoections. The SUBRECIPIENT shall make available to the CITY and/or Agency,
state and/or federal officials its records and data with respect to all matters covered by
this Agreement for inspection and audit, which inspection and audit may be made at
any time after reasonable notice. The SUBRECIPIENT shall comply with the audit
requirements of OMB Circular Number A-II 0, as applicable, and as they relate to the
acceptance and use of federal funds under this Agreement.
(d) Performance Evaluations. The SUBRECIPIENT shall permit CITY and/or Agency,
state and/or federal officials to monitor, assess or evaluate the SUBRECIPIENT's
performance under this Agreement on at least a monthly basis, said monitoring,
assessment or evaluation to include, but not be limited to, audits, inventory,
inspections within the program area, and interviews with the SUBRECIPIENT's
employees, agents, independent contractors and subcontractors, providing the services
under this Agreement and recipients thereof.
(e) This Agreement contemplates that the SUBRECIPIENT will pay salaries, utilities and
furnishings with the monies provided in accordance with Exhibit "B" and Section 2
Scope of Services, of this Agreement.
8. BuUdinl!: or Facilitv.
(a) Any building for which emergency shelter grant amounts are used for renovation,
conversion, or major rehabilitation, must meet local safety and sanitation standards.
(b) When ESGP funds are utilized to provide emergency shelter for the homeless in hotels
or motels or other commercial facilities providing transient housing, (i) the
SUBRECIPIENT, at the request of the CITY and/or Agency, shall execute an
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Agreement with the provider of such housing which provides that comparable living
space, in terms of quality, available in the facility for use as emergency shelters for at
least the same period of time as provided in Section 9 herein, and; (ii) leases
negotiated between the SUBRECIPIENT and the provider of such housing shall make
available such living space at substantially less than the daily room rate otherwise
charged by the facility and; (iii) the SUBRECIPIENT shall certify, in writing, to CITY
and/or Agency that it has considered using other facilities as emergency shelter for the
homeless in the City.
(c) The SUBRECIPIENT shall ensure that any building or facility is utilized exclusively
for secular purposes and is made available to all person regardless of religion. If
ESGP funds are used to renovate, rehabilitate, or convert buildings owned by
primarily religious organization or entities, the SUBRECIPIENT shall comply with
the provisions ofTitIe 24, Code of Federal Regulations, Part 575.21(b)(2).
(d) The SUBRECIPIENT shall comply with the Uniform Federal Accessibility Standards
(24 CFR, Part 40, Appendix "A"), when activities funded by the ESGP involve major
rehabilitation or conversion.
9. Maintenance as a Homeless Facilitv.
(a) The SUBRECIPIENT shall maintain any building for which ESGP funds are used for
not less than a three (3) year period, or for not less than a ten (10) year period if the
grant amounts are used for major rehabilitation or conversion of the building.
(b) The three (3) or ten (10) year periods begin to run, (i) on the date of initial occupancy
as an emergency shelter for the homeless when the building utilized was not operated
as an emergency shelter for the homeless before receiving ESGP funds, or; (ii) on the
date that ESGP funds are first obligated to the shelter when the building was operated
as an emergency shelter before receiving ESGP funds, or; (ii) on the date that ESGP
funds are first obligated to shelter when the building was operated as an emergency
shelter before receiving ESGP funds.
(c) When ESGP funds are used exclusively to provide essential services including, but not
limited to, services concerned with employment, physical or mental health, substance
abuse, education, food, equipment or furnishings, the time periods noted in (a) above
are not applicable.
10. Independent Capacity.
The SUBRECIPIENT, and its officers, employees and agents, shall act in an independent
capacity during the term of this Agreement and shall not act as, shall not be, nor shall they in
any manner be construed to be officers, employees, or agents of the CITY and/or the Agency
or the State of California.
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11. Assil!nabilitv.
The SUBRECIPIENT cannot assign any of its rights, duties or obligations pursuant to this
Agreement to any person or entity without the prior written consent of the CITY or the
Agency. This includes the ability to subcontract all, or a portion of, its rights, duties and
obligations hereunder.
12. Insnrance.
The SUBRECIPIENT shall during the term of this Agreement:
(a) Procure and maintain Workers' Compensation Insurance as prescribed by the laws of
the State of California.
(b) Procure and maintain comprehensive general and automobile liability insurance as
shall protect the SUBRECIPIENT from claims for damages for personal injury,
including accidental and wrongful death, as well as from claims for property damage,
which may arise from activities or programs under this Agreement, whether such
activities or programs by the SUBRECIPIENT, by any subcontractor or by any
officer, employee or agent of either of them.
Such insurance shall name the CITY and the Agency, their officers, officials,
attorneys, agents, employees, volunteers and independent contractors as additional
insureds with respect to this Agreement and the obligations of the SUBRECIPIENT
hereunder. Such insurance shall provide for combined coverage limits of not less than
$1,000,000 per occurrence.
(c) Furnish the CITY and the Agency with policies of insurance, prior to request for first
reimbursement for ESGP funds showing that such insurance is in full force and effect,
and that the CITY and the Agency are named as additional insureds with respect to
this Agreement and the obligations of the SUBRECIPIENT hereunder. Further, said
policies shall contain the covenant of the insurance carrier that thirty (30) days written
notice will be given to the CITY and the Agency prior to modification, cancellation, or
reduction in coverage of such insurance.
13. Hold Harmless.
The SUBRECIPIENT shall indemnify and hold the CITY and the Agency, their officers,
officials, attorneys, agents, employees, volunteers and independent contractors free and
harmless from any liability whatsoever, including wrongful death, based or asserted upon any
act or omission of the SUBRECIPIENT, its officers, agents, employees and independent
contractors in any legal action based upon such alleged acts or omissions. The specific
insurance coverage required in Section 12 shall in no way limit or circumscribe the
SUBRECIPIENT'S obligation to indemnify and hold the CITY and the Agency harmless as
set forth in this Section 13.
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14. Federal Requirement.
(a) The SUBRECIPIENT shall comply with the provIsions of the Act, and any
amendments thereto, and the federal regulations and guidelines now or hereinafter
enacted pursuant to the Act. More particularly, the SUBRECIPIENT is to comply
with those regulations found in Part 575 of Title 24 of the Code of Federal Regulations
and OMB Circulars Numbered A-IlO and A-Il2, respectively, and appropriate
attachments for non-profit organization contractors.
(b) The SUBRECIPIENT represents that it is, or may be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by, or in connection with, a religious or denominational
institution or organization.
(c) The SUBRECIPIENT agrees that, in connection with the services to be provided
hereunder, (i) it will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or give preference
in employment to persons on the basis of religion; (ii) it will not discriminate against
any person applying for such services on the basis of religion and will not limit such
services or give preference to persons on the basis of religion; (iii) it will provide no
religious instruction or counseling, conduct no religious workshop or services, engage
in no religious proselytizing and exert no other religious influence in the provision of
such services; (iv) the portion of a facility used to provide services assisted, in whole
or in part, under this Agreement shall contain no sectarian or religious symbols or
decorations, and; (v) the funds received under this Agreement shall not be used to
construct, rehabilitate, or restore any facility which is owned by the SUBRECIPIENT
in which the services are to be provided; provided that, minor repairs may be made if
such repairs are directly related to the services; are located in a structure used
exclusively for non-religious purposes, and; constitute in dollar terms only a minor
portion of the ESGP expenditure for the public services.
(d) The SUBRECIPIENT shall comply with the Housing and Community Development
Act (HCD Act) of 1992 (Public Law 102-550, approved October 28, 1992), which
requires the involvement of, to the extent practicable, homeless individuals and
families and operating facilities assisted under the ESGP in providing services for
occupants of these facilities (42 U.S.c. I 1375(c)(7), as added by Section 1402 (b)). .
(e) The SUBRECIPIENT shall comply with HCD Act, Section 1402 (d), which requires
that termination of assistance to any individual or family be in accordance with a
formal process, which may include a hearing, established by the SUBRECIPIENT.
IS. Compliance with Law.
The SUBRECIPIENT shall comply with all federal, state and . local laws and regulations
pertinent to its operation and services to be performed hereunder, and shall keep in effect any
and all licenses, permits, notices and certificates as are required thereby. The
SUBRECIPIENT shall further comply with all laws applicable to wages and hours of
employment, occupational safety and to fire safety, health and sanitation.
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16. Comprehensive Homeless Assistance Plan.
The SUBRECIPIENT shall cooperate with the CITY and the Agency in undertaking
emergency shelter grant activities and shall assist the CITY and the Agency in carrying out
the Comprehensive Homeless Assistance Plan and any other applicable strategies
implemented by the CITY and the Agency and shall act in conformity therewith.
17. Non-Discrimination and Equal Opportunity Compliance.
The SUBRECIPIENT hereby certifies compliance with the following:
(a) Executive Order Number 11246, as amended, and the regulations issued thereunder at
Title 41, Code of Federal Regulations, Chapter 60;
(b) Title VI and Title VII of the Civil Rights Act of 1964 (423 D.S.C. Section 2000(d) et.
seq.), as amended by the Equal Opportunity Act of March 24, 1972, (Public Law
Number 92-261);
(c) Title VIII of the Civil Rights Act of 1968 (42 D.S.C. Sections 3601-3619) and
implementing regulations issued pursuant thereto (24 CFR, Part I);
(d) Executive Order Number 11063 and implementing regulations issued pursuant thereto
(25 CFR, Part 107);
(e) Age Discrimination Act of 1975 (42 D.S.C., Sections 6101-6107);
(f) Section 504 of the Rehabilitation Act of 1973 (29 D.S.C., Section 794), and;
(g) Executive Orders Numbered 11625, 12432 and 12138 consistent with BUD's
responsibilities under these Orders, the SUBRECIPIENT must make efforts to
encourage the use of minority and women owned business enterprises in connection
with ESGP activities;
(h) The SUBRECIPIENT shall establish and maintain a procedure through which
homeless individuals will be informed of the facilities and services available to all on
a nondiscriminatory basis.
(i) SUBRECIPIENT agrees to abide by, and include in any subcontracts to perform work
under this Agreement, the following clause:
"During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors shall not unlawfully discriminate against any employee or application
for employment because of race, religion, color, national origin, ancestry, physical
handicap, medical condition, marital status, age (over 40), or sex. The
SUBRECIPIENT and subcontractors shall ensure that the evaluation and treatment of
their employees and applications for employment are free of such discrimination.
8
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The SUBRECIPIENT and subcontractors shall comply with the provisions of the Fair
Employment and Housing Act (Government Code, Section 12900 et. seq.). The
applicable regulations of the Fair Employment and Housing Commission
implementing Government Code Section 12990, set forth in Chapter five (5) of
Division four (4) of Title two (2) of the California Administrative Code are
incorporated into this Agreement by reference and made a part hereof as if fully set
forth at length.
The SUBRECIPIENT and its subcontractors shall give written notice of their
obligations under this clause to labor organizations with which they have collective
bargaining or other agreement."
G) The equal opportunity clause continued in Section 202 of Executive Order Number
11246, as amended, is hereby incorporated into this Agreement by this reference.
(k) During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors, if any, shall not deny the benefits rendered hereunder to any person on
the basis of religion, color, ethnic group identification, sex, age or physical or mental
disability.
(I) The SUBRECIPIENT shall furnish all information and reports as required by
Executive Order Number 11246, as amended.
(m) The SUBRECIPIENT shall include the non-discrimination and compliance provisions
of the equal opportunity clause in all subcontracts, if any.
18. Affirmative Action Compliance.
Each SUBRECIPIENT or subcontractor with less than fifty (50) employees shall comply with
Section 202, Part II, of Executive Order Number 11246, as amended. The SUBRECIPIENT
shall ensure that subcontractors, if any, falling within the scope of this provision shall comply
in full with the requirements thereof
19. Conflict ofInterest.
No person who is (i) an employee, agent, consultant, officer, or elected or appointed official
of the CITY, the Agency, state or the SUBRECIPIENT that receives ESGP funds and who
exercises or has exercised any functions or responsibilities with respect to assisted activities,
or; (ii) in a position to participate in a decision making process or gain inside information with
regard to such activities, may obtain a personal or financial interest or benefit from the
activity, or have an interest in any contract, subcontract or agreement with respect thereto, or
the proceeds thereunder, either for himself or herself or those with whom he or she has family
or business ties, during his or her tenure or for one (1) year thereafter.
20. Elil!ibilitv of Contractors and Subcontractors.
No ESGP funds allocated to the SUBRECIPIENT through this Agreement may be used,
directly or indirectly, to employ, award contracts to, or otherwise engage the services of, or
9
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purchase the goods of, or fund any contractor or subcontractor during any period of
debannent, suspension, or placement in ineligibility status under the provision of 24 CFR,
Part 4.
21. Lead Based Paint.
The SUBRECIPIENT and all subcontractors, if any, shall comply with the requirements, as
applicable, of the Lead-Based Paint Poisoning Prevention Act (42 D.S.C., Section 4821-4846)
and implementing regulations issued pursuant thereto (24 CFR, Part 35).
22. Flood Insurance.
No site proposed on which renovation, major rehabilitation, or conversion of a building, is to
be assisted under this part, other than by grant amounts allocated to the state, may be located
in an area that has been identified by the Federal Emergency Management Agency as having
special flood hazards, unless the community in which the areas is situated is participating in
the National Flood Insurance Program and the regulations issued thereunder (44 CFR, Parts
59-79) or less than a year has passed since the Federal Emergency Management Agency
notification regarding such hazards, and the SUBRECIPIENT will ensure that flood insurance
on the structure is obtained in compliance with Section 102(a) of the Flood Disaster
Protection Act of 1973, (42 D.S.C., Section 4001 et. seq.).
23. Notice.
Any notices required or desired to be served by either party upon the other shall be addressed
to respective parties as set forth below (or to such other addresses as from time to time may be
designated, in writing, by the respective parties):
AS TO AGENCY:
AS TO SUBRECIPIENT:
Maggie Pacheco, Executive Director
Economic Development Agency
201 North "E" Street, Suite 301
San Bernardino CA 92401-1507
Reverend David Kalke, Executive Director
Central City Lutheran Mission
1354 North "G" Street
San Bernardino, CA 92405
24. Bindinl! Successors.
The SUBRECIPIENT, its heirs, assigns and successors in interest shall be bound by all the
provisions contained in this Agreement, and all of the parties thereto shall be jointly and
severally liable hereunder.
25. Assurances.
The SUBRECIPIENT certifies that it has the legal authority to enter into and meet the
requirements of this Agreement.
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26. Lel!al Proceedinl!s.
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or othelWise
affect this Agreement between the parties it should be filed in San Bernardino County
Superior Court. The prevailing party shall be entitled to recover its reasonable legal fees.
The costs, salary and expenses of the City Attorney and members of his office in enforcing
this Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this section.
27. Entire Al!reement.
This Agreement is intended by the parties hereto as the final and exclusive expression of these
provisions contained in this Agreement and it supersedes and replaces any and all prior and
contemporaneous agreements and understandings, oral or written, in connection therewith.
This Agreement may be modified or changed only upon the written consent of the parties
hereto.
28. No Third Party Beneficiaries.
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No third party shall be deemed to have any rights hereunder against any of the parties hereto
as a result of this Agreement.
P;\f--'Houiq I'\nIJ\I!S(j 1'oraI$I2OO6-207I2OO6-2OO1 ESG ...,..... Merp.doc
11
IN WITNESS WHEREOF, the parties hereto have hereunto their hands and seals this day and
year first above written.
CITY OF SAN BERNARDINO
~ ~.~
Patrick. orri Mayor
ATTEST
City of San Bernardino
~jJ.~
Rachel ark, City Clerk
Approved as to Form:
12
p:~~~:zoll'NOO6.2007ESU~Merp.dol;
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
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between
THE CITY OF SAN BERNARDINO
and
CHILD ADVOCATES OF SAN BERNARDINO COUNTY
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TABLE OF CONTENTS
OPERA TNE PROVISIONS.........................................................................................................................................1
I. Scope of Services .......................... ..................................................................................................................I
2. Time of Perfonnance ............................................................................... ........................................................1
3. Compensation and Method of Payment.......................................................................................... .................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affirmative Action ....... ............................................................. ............ ....... ...................................................2
6. Discrimination ................. .......................................................... ......................................................................2
7. AccoWlting ......................................................................................................................................................2
8. Budget Section .................... ....................................................... .............. ..... ............ ......................................3
9. Non-Expendable Property .......................................................................... .....................................................3
10. Expendable Personal Property ...................................................... .............................. .....................................3
II. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint FWlding .............................................. .....................................................................................................4
15. Notices................... ..........................................................................................................................................4
16. Assignment................................................................................................. ..................................................... 5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ......................................... ..................................... ............ .................................................... 6
19. Reversion of Assets .........................................................................................................................................6
20. Fiscal Limitations .............................................. ...... ........................................................................................ 6
21. Use ofFWlds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Hannless.................................................................................................7
23. Insurance Requirements ................................................... ..... ............ .............................................................. 7
24. Conflict of Interest........ ......................................................... ........................... ................................. ..............9
25. Budget Modifications ...... ....................................... ........... ................ ............... ......................... ...................... 9
26. Time of Performance Modifications....................... ............ ............................... ....................... .................. ..... 9
27. Independent Contractor .. ....................................................... ........................... .............. .................. ........ .....1 0
28. Amendments; Variations .................................... ................... ............... ............. ....................... .....................10
29. Purchase and Invoice Deadlines ....................................................................................................................1 0
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Monitoring ......................................................................................................................................10
32. Monthly Progress Reports .............................................................................................................................11
33. Use ofFWlds..................................................................................................................................................11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ............................. ............................................. ..................................... ......................................... ....12
36. COWlterparts ......................................................... ............ ............................................................................ .13
37. Status of the Subrecipient..............................................................................................................................13
38. Legal Proceedings ..................................,......................................................................................................13
39. Exhibits..........................................................................................................................................................13
EXHffiIT I
EXHffiIT 2
EXHffiIT 3
EXHffiIT 4
EXHmIT 5
EXHffiIT 6
EXHIBIT 7
EXHffiIT 8
EXHIBIT 9
Project Activity/Description
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Conunitrnent
Schedule ofPayments/Request for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Child Advocates of
San Bernardino County, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
BUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit oflow- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Thirteen Thousand Dollars ($13,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement.. Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference.. All
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Requests for Reimbursement shall be submitted on a monthly basis in accordance with HUD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1112) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Sururnary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record ofthe positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budl!et Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or his/her Designee.
9. Non-Expendable Prooertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or his/her designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Exoendable Personal Prooertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or his/her designee.
11. Purchase or Lease ofNon-Exoendable Prooertv or EQuioment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Chanl!es in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient'srate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
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To the Subrecipient:
Jenna Colburn
Child Advocates of San Bernardino County
1635 North "D" Street
San Bernardino, CA 92405
16. Assignment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
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the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 ofthis Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the contr.ol
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
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order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce. the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or his/her designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or his/her designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhis/her intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance ReQuirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of$I,OOO,OOO limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
I. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shaH comply with aH applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of aH applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shaH furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed sub grantees/subcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
sub grantees/subcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand DoHars ($10,000) or more during the term of this
Agreement. Such list shaH include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shaH notifY the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specificaHy requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specificaHy requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments; Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. ACQuisition of Supplies and EQuipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
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accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
his/her designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact ofthe program.
32. Monthlv Progress Reoorts
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Relilrious Proselytizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient: .
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (1) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counterparts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecioient
This Agreement shall not become effective until such time as the Director or his/her
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Beroardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or hislher designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Child Advocates of San Bernardino County
~"t.
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ATTEST:
By: ~~h.~_
Rache Clark, City Clerk
Approved as to Form:
14
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28 Atl 9: 59
CDBG SUBRECIPIENT AGREEMENT
(public Services Program)
between
THE CITY OF SAN BERNARDINO
and
FRAZEE COMMUNITY CENTER
TABLE OF CONTENTS
OPERATIVE PROVISIONS.........................................................................................................................................1
1. Scope of Services ........................................................................ ....................................................................1
2. Time of Performance .......................................................................................................................................1
3. Compensation and Method of Payment........................................ ...................................................................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affmnative Action ..........................................................................................................................................2
6. Discrirnination.................................................................................................................................................2
7. Accounting ......................................................................................................................................................2
8. Budget Section ........................................................................... ..................................... .......................... ......3
9. Non-Expendable Property ......................................................... ................................................. .....................3
10. Expendable Personal Property .........................................................................................................................3
11. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Funding ...... .............................................................................................................................................4
15. Notices............................................................................................ .................................................................4
16. Assigmnent.......... ..................................................................................................................... .......... ............. 5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ......................................................................... ............................................... ...................... 6
19. Reversion of Assets .........................................................................................................................................6
20. Fiscal Limitations .......................................................................... .................. .................................. .............. 6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Hann1ess.................................................................................................7
23. Insurance Requirements .................................................................................... ....... ................. ...................... 7
24. Conflict of Interest........................................................................... ..................... ............................. .............. 9
25. Budget Modifications ................................................................... ................... .................. ...... ......... ............... 9
26. Time of Performance Modifications........................................... .................................... ................... .............. 9
27. Independent Contractor ................................................................................... ............... .................. .............1 0
28. Amendments; Variations ......................................... .................. ...................... ................ ........ ......................1 0
29. Purchase and Invoice Deadlines ....................................................................................................................1 0
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Mouitorlng .........................................................................................................,.............................1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds........................................................................................... .......................................................11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ....................................................................................................................... .....................................12
36. Counterparts .................................. ..... ............................................... ...................... ......................................13
37. Status of the Subrecipient..............................................................................................................................13
38. Legal Proceedings .........................................................................................................................................13
39. Exhibits................................ ................ .......................................................................................................... 13
EXHIBIT 1
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project Activity/Description
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule ofPayments/Request for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Frazee Community
Center, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffmg, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "1" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavment
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Thirteen Thousand Dollars ($13,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement. . Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference. All
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Requests for Reimbursement shall be submitted on a monthly basis in accordance with HUD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Summary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result ofthis program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Sununary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-ExDendable ProDertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. ExDendable Personal ProDertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
II. Purchase or Lease of Non-Ex Den dab Ie ProDertv or EauiDment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (I) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Relluirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement' listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other govermnental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with govermnental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HOD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
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To the Subrecipient:
Gretchen Mellon
Frazee Community Center
P.O. Box 8250
San Bernardino, CA 92412
16. AssilD1IIlent
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or his/her designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regnlations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
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the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisious of
paragraph 19 ofthis Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
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order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient of his /her intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of$I,OOO,OOO limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
I. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgrantees/subcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
sub grantees/subcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Independent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition of Supplies and Eauipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, fmancial and other records .and
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accounts as are considered necessary by HUD, and tbe City, to assure proper accounting for
all CDBG funds autborized under tbis Agreement. The Subrecipient will permit on-site
inspection by tbe City and Agency and HUD representatives, and ensure tbat its employees
and board members furnish such information, as in the judgment of tbe City and HUD, may
be relevant to a question of compliance witb contractual conditions and HUD directives, or
tbe effectiveness, legality, and achievements of the program. All tbe Subrecipient records,
witb tbe exception of confidential client information, shall be made available to
representatives oftbe City and appropriate federal agencies. The Subrecipient will maintain a
copy of tbe Income Qualification Statement in tbe form of which is attached hereto as
Exhibit "8" and incorporated herein by tbis reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on tbe extent to which tbe planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and tbe impact of tbe program.
32. Montblv Progress Reports
By tbe fifth (5th) day of each montb, tbe Subrecipient shall submit a Montbly Status Report
on tbe progress of tbe program to tbe Agency. This report shall conform to tbe HUD Direct
Benefit Form, in tbe form of which is attached hereto as Exhibit "9" and incorporated herein
by tbis reference. Totals should reflect montbly and cumulative data of all
personslhouseholds assisted under tbis Agreement. A supporting narrative will also be
required, tbat describes in measurable terms, tbe accomplishments and activities attained
during tbe reporting montb by tbe Subrecipient in meeting tbe goals described in Exhibit "I"
during tbe reporting montb.
33. Use of Funds
Funds allocated pursuant to tbis Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for tbe Subrecipient shall be non-interest bearing.
34. Religious Proselvtizing or Political Activities
The Subrecipient agrees tbat it will not perform or permit any religious proselytizing or
political activities in connection witb tbe performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of tbe services required under tbis
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, otber provisions of this Agreement regarding the
provision of public services witb CDBG funds, pursuant to Title I of tbe Housing and
Community Development Act of 1974, as amended, and provided tbe Subrecipient is and has
qualified to participate in tbis Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection witb a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDSG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counterparts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecioient
This Agreement shall not become effective until such time as the Director or hislher
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or hislher designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
By:
ATTEST:
By:~h~
Rac I Clark, City Clerk
Approved as to Form:
SUBRECIPIENT
Frazee Community Center
By: 4~/~ 7n~
" .
For Frazee Community Center
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">0 ".'.'110' 00
,:::,U h
ESG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
FRAZEE HOMELESS SHELTER
AGREEMENT FOR USE OF EMERGENCY SHELTER GRANT FUNDS
THIS AGREEMENT, entered in this 1st day of July, 2006 by and between the CITY OF SAN
BERNARDINO, (hereinafter referred to as the "CITY") and Frazee Homeless Shelter, a California
non-profit corporation, (hereinafter referred to as the "SUB RECIPIENT");
WITNESSETH
WHEREAS, pursuant to Subtitle "B" of the Stewart B. McKinney Homeless Assistance Act
of 1987 (Public Law 100-77), (hereinafter referred to as the "Act"), the CITY has been awarded
Emergency Shelter Grant Program ("ESGP") funds which are to be used to improve the quality of
existing emergency shelters for the homeless, to help make available additional emergency shelters,
and to help meet the costs of operating emergency shelters and of providing certain essential social
services to homeless individuals, and;
WHEREAS, the CITY desires to contract with non-profit corporations for the use of ESGP
funds to provide various services for homeless individuals, and;
WHEREAS, the SUBRECIPIENT as a non-profit corporation, is eligible under the Act to
receive ESGP funds to provide those services as described herein.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
1. Term.
The term of this Agreement shall be for a period commencing on July 1, 2006, and
terminating on June 30, 2007, or as otherwise provided for in Section 5 herein.
2. Scope of Services.
The SUBRECIPIENT promises and agrees to provide certain emergency shelter grant
program services for homeless persons by utilizing the sum of Twelve Thousand Dollars
($12,000.00) in ESGP funds, as set forth in the manner provided in Exhibit "A" which is
attached hereto, and by this reference, incorporated herein. The SUBRECIPIENT shall also
provide homeless individuals with assistance in obtaining (i) appropriate supportive services,
including permanent housing, physical and mental health treatment, counseling, supervision,
and other services essential for achieving independent living, and; (ii) other federal, state,
local and private assistance provided hereunder shall be in full conformity with the Act, and
any amendments thereto, and the federal regulations and guidelines now, or hereinafter
enacted pursuant to the Act.
3. Matchinl! Funds.
The SUBRECIPIENT must supplement its emergency shelter grant amounts with an equal
amount of funds from sources other than those provided herein and from non-federal sources.
These funds must be provided after the date of the grant award to the SUBRECIPIENT. The
SUBRECIPIENT may comply with this requirement by providing the supplemental funds
itself, or voluntary efforts or gifts in kind provided to the SUBRECIPIENT, as appropriate.
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4. Calculatinl! the Matchinl! Amount.
In calculating the amount of supplemental funds, there may be included the value of any
donated material or building(s), the value of the lease(s) on the building(s); any salary paid to
staff of the SUBRECIPIENT, or to any State or non-profit recipient, as appropriate, in
carrying out the Emergency Shelter Grant Program; and the time and services contributed by
volunteers to carry out the ESGP, determined at the rate of $5.00 per hour. For purposes of
this Section 4, the SUBRECIPIENT upon concurrence of the Executive Director (the
"Administrator") of the Redevelopment Agency of the City of San Bernardino ("Agency"),
the Administrator of the ESG Program, will determine the value of any donated material or
building(s) or any lease(s), or furnishings and equipment using any method reasonably
calculated to establish a fair market value.
5. Termination.
(a) Either party may terminate this Agreement upon thirty (30) days prior written notice to
the other party.
(b) Notwithstanding the provisions of Section 5(a), the CITY may suspend or terminate
this Agreement forthwith for cause, upon written notice to the SUBRECIPIENT of the
action being taken. Cause shall be established, (i) in the event the SUBRECIPIENT
fails to perform the covenants herein contained; (ii) in the event there is a conflict with
any federal, state or local law, ordinance, regulation or rule rendering any of the
provisions of this Agreement invalid or untenable, or; (iii) in the event the funding
from the United States Department of Housing and Urban Development (HUD),
referred to in the recitals herein, is reduced, terminated or otherwise becomes
unavailable. The CITY shall provide written notice to the SUBRECIPIENT within ten
(10) working days from the date HOD reduces, suspends or terminates the ESGP
funding. This Agreement may, at the discretion of the Administrator of the CITY, be
either terminated or amended to reflect said reduction of funds.
(c) Upon termination of this Agreement, the SUBRECIPIENT agrees to return any
unencumbered funds which it has been provided by the CITY. In accepting said
funds, the CITY does not waive any claim or cause of action it may have against the
SUBRECIPIENT for breach of this Agreement. .
(d) Upon termination of this Agreement, the SUBRECIPIENT shall not mcur any
obligations after the effective date of such termination.
(e) Any provisions for inspection and audits relative to the expenditure of funds provided
for hereunder shall not be ended upon the date of any termination but shall continue
thereafter as specified herein.
(f) SUBRECIPIENT will be required to cooperate and work in collaboration with City
departments, to include but not limited to: Police Department, Fire Department and
Code Compliance and the Agency in an effort to promote the well-being of citizens
and aid in reduction of crime, blight and unsafe living conditions. From time to time,
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SUBRECIPIENT may be required to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 5. Termination. of this Agreement.
6. Pavment of Funds.
The Mayor and Common Council of the CITY shall determine the final disposition and
distribution of all funds received by the CITY under the Act. On behalf of the CITY, the
Agency shall make payments of ESGP funds to the SUBRECIPIENT for the purposes set
forth in Exhibit "A" and shall monitor the expenditure of funds and activities of the
SUBRECIPIENT to ensure compliance with applicable federal regulations and the terms of
this Agreement. The SUBRECIPIENT shall establish and maintain a separate account for all
ESGP funds received under this Agreement and deposit all such funds in said account.
All disbursements of ESGP funds by the Agency will be made in the following manner:
(a) Payments shall be made on a reimbursement basis and made within thirty (30) days
after the SUBRECIPIENT has submitted written notice identifYing payments made
and requesting reimbursement. Payments shall be based on documented expenses by
the SUBRECIPIENT, for the purposes set forth in Exhibit "B" approved by the
Administrator, or his/her designee. The Agency shall reimburse on a monthly basis,
I/12 of the SUBRECIPIENT's ESGP funds.
(b) In no event shall the CITY or the Agency, or any of its officers, agents or employees,
be held liable for expenses incurred by the SUBRECIPIENT in excess of the ESGP
allocation noted in Section 2, entitled "Scope of Services."
(c) Payments may be withheld if, on a determination by the Administrator, the
SUBRECIPIENT has not complied with the covenants herein contained at such times,
and in such manner as provided in this Agreement.
(d) No later than thirty (30) days prior to the date set forth herein for terinination of this
Agreement, the SUBRECIPIENT shall provide the CITY or Agency with its estimate
of the amount of funds which will remain unexpended upon such termination.
Notwithstanding any provisions contained in this Section 6, the Agency, through its
Administrator, shall thereafter, upon reasonable notice provide to the SUBRECIPIENT, have
the right to (i) reduce the payment of funds hereunder, (ii) renegotiate the actual levels of
expenditures in the event the SUBRECIPIENT's rate of expenditures will result in
unexpended funds at the expiration of this Agreement, and/or; (iii) re-program funds
associated with this Agreement in which the Administrator finds there has been no substantial
progress or activity.
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7. Documentation. Reports. Inspections and Performance Evaluations.
(a) Documentation of Expenditures. All expenditures supported by properly executed
payrolls, time records, invoices, contracts, vouchers, receipts, orders and any other
accounting documentation pertaining, in whole or in part, to this Agreement, shall be
clearly identified and readily accessible. The SUBRECIPIENT shall maintain and
keep available all such documents for a period of not less than three (3) years from the
termination of this Agreement, if a CITY, Agency, state and/or federal audit has
occurred within six (6) months prior to date oftermination, and for a period of not less
than five (5) years from said date if such audit has not occurred. In the event of audit
exception, such documentation shall be maintained until every exception has been
cleared to the satisfaction of the auditing authority.
(b) Reports. The SUBRECIPIENT, at such times and on such forms as the Agency may
require, shall furnish the Agency such statements, records, reports, data and
information as the Agency may request pertaining to its performance of services
hereunder and other matters covered by this Agreement. The SUBRECIPIENT shall
establish and maintain records in accordance with the Office of Management and
Budget (OMB) Circulars Numbered A-110 and A-1l2, respectively, as applicable to
the acceptance and use of emergency shelter grants.
(c) Inspections. The SUBRECIPIENT shall make available to the CITY and/or Agency,
state and/or federal officials its records and data with respect to all matters covered by
this Agreement for inspection and audit, which inspection and audit may be made at
any time after reasonable notice. The SUBRECIPIENT shall comply with the audit
requirements ofOMB Circular Number A-I 10, as applicable, and as they relate to the
acceptance and use of federal funds under this Agreement.
(d) Performance Evaluations. The SUBRECIPIENT shall permit CITY and/or Agency,
state and/or federal officials to monitor, assess or evaluate the SUBRECIPIENT's
performance under this Agreement on at least a monthly basis, said monitoring,
assessment or evaluation to include, but not be limited to, audits, inventory,
inspections within the program area, and interviews with the SUBRECIPIENT's
employees, agents, independent contractors and subcontractors, providing the services
under this Agreement and recipients thereof.
(e) This Agreement contemplates that the SUBRECIPIENT will pay salaries, utilities and
furnishings with the monies provided in accordance with Exhibit "B" and Section 2
Scope of Services, of this Agreement.
8. Duildin!! or Facilitv.
(a) Any building for which emergency shelter grant amounts are used for renovation,
conversion, or major rehabilitation, must meet local safety and sanitation standards.
(b) When ESGP funds are utilized to provide emergency shelter for the homeless in hotels
or motels or other commercial facilities providing transient housing, (i) the
SUBRECIPIENT, at the request of the CITY and/or Agency, shall execute an
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Agreement with the provider of such housing which provides that comparable living
space, in terms of quality, available in the facility for use as emergency shelters for at
least the same period of time as provided in Section 9 herein, and; (ii) leases
negotiated between the SUBRECIPIENT and the provider of such housing shall make
available such living space at substantially less than the daily room rate otherwise
charged by the facility and; (iii) the SUBRECIPIENT shall certify, in writing, to CITY
and/or Agency that it has considered using other facilities as emergency shelter for the
homeless in the City.
(c) The SUBRECIPIENT shall ensure that any building or facility is utilized exclusively
for secular purposes and is made available to all person regardless of religion. If
ESGP funds are used to renovate, rehabilitate, or convert buildings owned by
primarily religious organization or entities, the SUBRECIPIENT shall comply with
the provisions of Titie 24, Code of Federal Regulations, Part 575.21(b)(2).
(d) The SUBRECIPIENT shall comply with the Uniform Federal Accessibility Standards
(24 CFR, Part 40, Appendix "A"), when activities funded by the ESGP involve major
rehabilitation or conversion.
9. Maintenance as a Homeless Facilitv.
(a) The SUBRECIPIENT shall maintain any building for which ESGP funds are used for
not less than a three (3) year period, or for not less than a ten (10) year period if the
grant amounts are used for major rehabilitation or conversion of the building.
(b) The three (3) or ten (10) year periods begin to run, (i) on the date of initial occupancy
as an emergency shelter for the homeless when the building utilized was not operated
as an emergency shelter for the homeless before receiving ESGP funds, or; (ii) on the
date that ESGP funds are first obligated to the shelter when the building was operated
as an emergency shelter before receiving ESGP funds, or; (ii) on the date that ESGP
funds are first obligated to shelter when the building was operated as an emergency
shelter before receiving ESGP funds.
(c) When ESGP funds are used exclusively to provide essential services including, but not
limited to, services concerned with employment, physical or mental health, substance
abuse, education, food, equipment or furnishings, the time periods noted in (a) above
are not applicable.
10. Independent Capacity.
The SUBRECIPIENT, and its officers, employees and agents, shall act in an independent
capacity during the term of this Agreement and shall not act as, shall not be, nor shall they in
any manner be construed to be officers, employees, or agents of the CITY and/or the Agency
or the State of California.
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11. Assil!nabilitv.
The SUBRECIPIENT cannot assign any of its rights, duties or obligations pursuant to this
Agreement to any person or entity without the prior written consent of the CITY or the
Agency. This includes the ability to subcontract all, or a portion of, its rights, duties and
obligations hereunder.
12. Insurance.
The SUBRECIPIENT shall during the term of this Agreement:
(a) Procure and maintain Workers' Compensation Insurance as prescribed by the laws of
the State of California.
(b) Procure and maintain comprehensive general and automobile liability insurance as
shall protect the SUBRECIPIENT from claims for damages for personal injury,
including accidental and wrongful death, as well as from claims for property damage,
which may arise from activities or programs under this Agreement, whether such
activities or programs by the SUBRECIPIENT, by any subcontractor or by any
officer, employee or agent of either of them.
Such insurance shall name the CITY and the Agency, their officers, officials,
attorneys, agents, employees, volunteers and independent contractors as additional
insureds with respect to this Agreement and the obligations of the SUBRECIPIENT
hereunder. Such insurance shall provide for combined coverage limits of not less than
$1,000,000 per occurrence.
(c) Furnish the CITY and the Agency with policies of insurance, prior to request for first
reimbursement for ESGP funds showing that such insurance is in full force and effect,
and that the CITY and the Agency are named as additional insureds with respect to
this Agreement and the obligations of the SUBRECIPIENT hereunder. Further, said
policies shall contain the covenant of the insurance carrier that thirty (30) days written
notice will be given to the CITY and the Agency prior to modification, cancellation, or
reduction in coverage of such insurance.
13. Hold Harmless.
The SUBRECIPIENT shall indemnify and hold the CITY and the Agency, their officers,
officials, attorneys, agents, employees, volunteers and independent contractors free and
harmless from any liability whatsoever, including wrongful death, based or asserted upon any
act or omission of the SUBRECIPIENT, its officers, agents, employees and independent
contractors in any legal action based upon such alleged acts or omissions. The specific
insurance coverage required in Section 12 shall in no way limit or circumscribe the
SUBRECIPIENT'S obligation to indemnify and hold the CITY and the Agency harmless as
set forth in this Section 13.
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14. Federal Reauirement.
(a) The SUBREClPIENT shall comply with the provISIons of the Act, and any
amendments thereto, and the federal regulations and guidelines now or hereinafter
enacted pursuant to the Act. More particularly, the SUBREClPIENT is to comply
with those regulations found in Part 575 of Title 24 of the Code of Federal Regulations
and OMB Circulars Numbered A-110 and A-ll2, respectively, and appropriate
attachments for non-profit organization contractors.
(b) The SUBREClPIENT represents that it is, or may be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by, or in connection with, a religious or denominational
institution or organization.
(c) The SUBREClPIENT agrees that, in connection with the services to be provided
hereunder, (i) it will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or give preference
in employment to persons on the basis of religion; (ii) it will not discriminate against
any person applying for such services on the basis of religion and will not limit such
services or give preference to persons on the basis of religion; (iii) it will provide no
religious instruction or counseling, conduct no religious workshop or services, engage
in no religious proselytizing and exert no other religious influence in the provision of
such services; (iv) the portion of a facility used to provide services assisted, in whole
or in part, under this Agreement shall contain no sectarian or religious symbols or
decorations, and; (v) the funds received under this Agreement shall not be used to
construct, rehabilitate, or restore any facility which is owned by the SUBREClPIENT
in which the services are to be provided; provided that, minor repairs may be made if
such repairs are directly related to the services; are located in a structure used
exclusively for non-religious purposes, and; constitute in dollar terms only a minor
portion of the ESGP expenditure for the public services.
(d) The SUBREClPIENT shall comply with the Housing and Community Development
Act (HCD Act) of 1992 (public Law 102-550, approved October 28, 1992), which
requires the involvement of, to the extent practicable, homeless individuals and
families and operating facilities assisted under the ESGP in providing services for
occupants of these facilities (42 D.S.C. 1 1375(c)(7), as added by Section 1402 (b)).
(e) The SUBREClPIENT shall comply with HCD Act, Section 1402 (d), which requires
that termination of assistance to any individual or family be in accordance with a
formal process, which may include a hearing, established by the SUBREClPIENT.
15. Compliance with Law.
The SUBREClPIENT shall comply with all federal, state and -local laws and regulations
pertinent to its operation and services to be performed hereunder, and shall keep in effect any
and all licenses, permits, notices and certificates as are required thereby. The
SUBREClPIENT shall further comply with all laws applicable to wages and hours of
employment, occupational safety and to fire safety, health and sanitation.
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16. Comprehensive Homeless Assistance Plan.
The SUBRECIPIENT shall cooperate with the CITY and the Agency in undertaking
emergency shelter grant activities and shall assist the CITY and the Agency in carrying out
the Comprehensive Homeless Assistance Plan and any other applicable strategies
implemented by the CITY and the Agency and shall act in conformity therewith.
17. Non-Discrimination and Equal Opportunity Compliance.
The SUBRECIPIENT hereby certifies compliance with the following:
(a) Executive Order Number 11246, as amended, and the regulations issued thereunder at
Title 41, Code of Federal Regulations, Chapter 60;
(b) Title VI and Title VII of the Civil Rights Act of 1964 (423 D.S.C. Section 2000(d) et.
seq.), as amended by the Equal Opportunity Act of March 24, 1972, (Public Law
Number 92-261);
(c) Title VIII of the Civil Rights Act of 1968 (42 D.S.C. Sections 3601-3619) and
implementing regulations issued pursuant thereto (24 CFR, Part 1);
(d) Executive Order Number 11063 and implementing regulations issued pursuant thereto
(25 CFR, Part 107);
(e) Age Discrimination Act of 1975 (42 D.S.C., Sections 6101-6107);
(t) Section 504 of the Rehabilitation Act of 1973 (29 D.S.C., Section 794), and;
(g) Executive Orders Numbered 11625, 12432 and 12138 consistent with HUD's
responsibilities under these Orders, the SUBRECIPIENT must make efforts to
encourage the use of minority and women owned business enterprises in connection
with ESOP activities;
(h) The SUBRECIPIENT shall establish and maintain a procedure through which
homeless individuals will be informed of the facilities and services available to all on
a nondiscriminatory basis.
(i) SUBRECIPIENT agrees to abide by, and include in any subcontracts to perform work
under this Agreement, the following clause:
"During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors shall not unlawfully discriminate against any employee or application
for employment because of race, religion, color, national origin, ancestry, physical
handicap, medical condition, marital status, age (over 40), or sex. The
SUBRECIPIENT and subcontractors shall ensure that the evaluation and treatment of
their employees and applications for employment are free of such discrimination.
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The SUBRECIPIENT and subcontractors shall comply with the provisions of the Fair
Employment and Housing Act (Government Code, Section 12900 et. seq.). The
applicable regulations of the Fair Employment and Housing Commission
implementing Government Code Section 12990, set forth in Chapter five (5) of
Division four (4) of Title two (2) of the California Administrative Code are
incorporated into this Agreement by reference and made a part hereof as if fully set
forth at length.
The SUBRECIPIENT and its subcontractors shall give written notice of their
obligations under this clause to labor organizations with which they have collective
bargaining or other agreement."
G) The equal opportunity clause continued in Section 202 of Executive Order Number
11246, as amended, is hereby incorporated into this Agreement by this reference.
(k) During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors, if any, shall not deny the benefits rendered hereunder to any person on
the basis of religion, color, ethnic group identification, sex, age or physical or mental
disability.
(I) The SUBRECIPIENT shall furnish all information and reports as required by
Executive Order Number 11246, as amended.
(m) The SUBRECIPIENT shall include the non-discrimination and compliance provisions
of the equal opportunity clause in all subcontracts, if any.
18. Affirmative Action Compliance.
Each SUBRECIPIENT or subcontractor with less than fifty (50) employees shall comply with
Section 202, Part II, of Executive Order Number 11246, as amended. The SUBRECIPIENT
shall ensure that subcontractors, if any, falling within the scope of this provision shall comply
in full with the requirements thereof
19. Contlict of Interest.
No person who is (i) an employee, agent, consultant, officer, or elected or appointed official
of the CITY, the Agency, state or the SUBRECIPIENT that receives ESGP funds and who
exercises or has exercised any functions or responsibilities with respect to assisted activities,
or; (ii) in a position to participate in a decision making process or gain inside information with
regard to such activities, may obtain a personal or financial interest or benefit from the
activity, or have an interest in any contract, subcontract or agreement with respect thereto, or
the proceeds thereunder, either for himself or herself or those with whom he or she has family
or business ties, during his or her tenure or for one (I) year thereafter.
20. Elil!ibilitv of Contractors and Subcontractors.
No ESGP funds allocated to the SUBRECIPIENT through this Agreement may be used,
directly or indirectly, to employ, award contracts to, or otherwise engage the services of, or
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purchase the goods of, or fund any contractor or subcontractor during any period of
debannent, suspension, or placement in ineligibility status under the provision of 24 CFR,
Part 4.
21. Lead Based Paint.
The SUBRECIPIENT and all subcontractors, if any, shall comply with the requirements, as
applicable, of the Lead-Based Paint Poisoning Prevention Act (42 V.S.C., Section 4821-4846)
and implementing regulations issued pursuant thereto (24 CFR, Part 35).
22. Flood Insurance.
No site proposed on which renovation, major rehabilitation, or conversion of a building, is to
be assisted under this part, other than by grant amounts allocated to the state, may be located
in an area that has been identified by the Federal Emergency Management Agency as having
special flood hazards, unless the commuuity in which the areas is situated is participating in
the National Flood Insurance Program and the regulations issued thereunder (44 CFR, Parts
59-79) or less than a year has passed since the Federal Emergency Management Agency
notification regarding such hazards, and the SUBRECIPIENT will ensure that flood insurance
on the structure is obtained in compliance with Section 102(a) of the Flood Disaster
Protection Act of 1973, (42 U.S.C., Section 4001 et. seq.).
23. Notice.
Any notices required or desired to be served by either party upon the other shall be addressed
to respective parties as set forth below (or to such other addresses as from time to time may be
designated, in writing, by the respective parties):
AS TO AGENCY:
AS TO SUBRECIPIENT:
Maggie Pacheco, Executive Director
Economic Dc;velopment Agency
201 North "E" Street, Suite 301
San Bernardino CA 92401-1507
Gretchen Mellon, Executive Director
Frazee Homeless Shelter
1413 Kendall Avenue
San Bernardino, CA 92410
24. Bindin!! Successors.
The SUBRECIPIENT, its heirs, assigns and successors in interest shall be bound by all the
provisions contained in this Agreement, and all of the parties thereto shall be jointly and
severally liable hereunder.
25. Assurances.
The SUBRECIPIENT certifies that it has the legal authority to enter into and meet the
requirements of this Agreement.
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26. Lel!:al Proceedinl!:s.
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this Agreement between the parties it should be filed in San Bernardino County
Superior Court. The prevailing party shall be entitled to recover its reasonable legal fees.
The costs, salary and expenses of the City Attorney and members of his office in enforcing
this Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this section.
27. Entire Al!:reement.
This Agreement is intended by the parties hereto as the final and exclusive expression ofthese
provisions contained in this Agreement and it supersedes and replaces any and all prior and
contemporaneous agreements and understandings, oral or written, in connection therewith.
This Agreement may be modified or changed only upon the written consent of the parties
hereto.
28. No Third Party Beneficiaries.
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No third party shall be deemed to have any rights hereunder against any of the parties hereto
as a result of this Agreement.
11
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IN WITNESS WHEREOF, the parties hereto have hereunto their hands and seals this day and
year first above written.
CITY OF SAN BERNARDINO
Fmzee Haneless Shel1fr
a California non-profit corporation
./J;J;L /hu/~
, Executive Director
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ATTEST
City of San Bernardino
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Rac I Clark, City Clerk
Approved as to Form:
12
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CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
LORINE'S LEARNING ACADEMY
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TABLE OF CONTENTS
OPERATIVE PROVISiONS.........................................................................................................................................1
1. Scope of Services ............................................................................................................................................1
2. Time ofPerfonnance .......................................................................................................................................1
3. Compensation and Method ofPayment...........................................................................................................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affinnative Action.. ....................................................................... ............ ................................................ .....2
6. Discrimination .............................................................................................. ...................................................2
7. Accounting ........................ ...... ............. ............................................... ......... ...................................................2
8. Budget Section .............................................................................................................................. ..................3
9. Non-Expendable Property ....... ............ ...................... .......................................................................... .......... ..3
10. Expendable Personal Property .............................................................. ........... ........................ ............ ........ ....3
II. Purchase or Lease of Non-Expendable Property or Equipment......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ................................................................. ..................................................4
14. Joint Funding.. .................. ........................................................................................... ....................................4
15. Notices............. .............. ..... .............................................................................................................................4
16. Assignment.... .................. ................................................................................................................................5
17. Termioation and Termioation Costs ................................................... .......... ....................................... ............5
18. Program Income. ............................... ....................... ........................... ........... ..................... ................... .........6
19. Reversion of Assets ................................................... ........................................................... ...........................6
20. Fiscal Limitations ..................................................... ..................................................................................... ..6
21. Use of Funds for Entertaiomenl, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold HannJess................................................................................................. 7
23. Insurance Requirements ............ ......... .................... ...................................... ............. ................. .............. ....... 7
24. Conflict of Interest. ........................... ..... ............................................ .......... .............. .............. ...... .... ..............9
25. Budget Modifications ................... ............ .... ..................................... ..................... ................ ....... ...... .... .........9
26. Time ofPerfonnance Modifications............ .... ........... ........................ ........... ........... ................. .......... ............9
27. Independent Contractor .......................... ............ ......... ........................ .......... .......... .................. .......... .......... 10
28. Amendments; Variations ............................... .... ..... ..... .................................. ............. ...................................1 0
29. Purchase and Invoice Deadlines ........... .......... ............... ........ .............. ...................... ................................. ...1 0
30. Acquisition of Supplies and Equipment........................................................................................................10
31. Program Monitoring ...................... ................. ........... ........................... ......... ............ ....................................1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds........ ....................... ..... ................................................... ..................... ...................................... 11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ...... ............. ............................................................................. ........ ........................................... .........12
36. Counterparts ...... ............................... ................................................. ......... ....... ....................... .....................13
37. Status of the Subrecipient..... ................. ........................................... ................. ......................... .......... .........13
38. Legal Proceedings .............................. ............................................. ........... ............................... ........... ......... 13
39. Exhibits.............................................................................................................. .................. ....... ................... 13
EXHIBIT 1
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project ActivitylDescription
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule ofPayrnents/Request for Reimbursement Ouly
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Lorine's Learning
Academy, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipientare to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Ten Thousand Dollars ($10,000.00) which the Mayor and Common Council
approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall constitute
full and complete compensation for performance by the Subrecipient of the Services under
this Agreement. Method of payment shall be in the form of a Request for Reimbursement in
accordance with the terms and conditions set forth on Exhibit "6" to this Agreement, a copy
of which is attached hereto and incorporated herein by this reference. All Requests for
1
Reimbursement shall be submitted on a monthly basis in accordance with HUD regulations
"Audit Ready." The Redevelopment Agency of the City of San Bernardino (the "Agency")
on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total allocation
beginning the month of July 2006. Verifiable supporting documentation of expenditures for
services rendered, plus proof of payment all acceptable to the City in the sole discretion of
the City shall be submitted prior to any payment by the City to the Subrecipient. Supporting
statements shall give the total of said monthly expenses and shall also itemize the same in
detail conforming to the Budget Summary set forth on Exhibit "2". After timely receipt of
each supporting statement, the City will draw a warrant within thirty (30) days in favor of the
Subrecipient for the total amount of the Request for Reimbursement approved by the City.
The City will reject and return reimbursement requests not properly and/or completely
submitted.
4. Comoliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-Expendable Propertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (1) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal Propertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
11. Purchase or Lease of Non-Expendable Propertv or EQuipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources. .
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
4
To the Subrecipient:
Larine Hargrave
Larine's Learning Academy
702 West 16th Street
San Bernardino, CA 92405
16. Assignment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or his/her designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Prograrn; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b ) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUn program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUn has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUn cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Requirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of$ I ,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
7
single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
8
24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgrantees/subcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgrantees/subcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
9
e. Do not alter the amount of compensation under this Agreement.
27. Independent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition of Supplies and Eauipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
his/her designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reoorts
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
persons/households assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious Proselvtizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
. Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purpOS!)S which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
11
a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. Ifindications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counterparts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status ofthe Subrecioient
This Agreement shall not become effective until such time as the Director or his/her
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or his/her designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Lorine's Learning Academy
~
By: . 1,k.1Zd...VL
For orine s Learning AcadeltJ.y
ATTEST:
By:~h~
Rach Clark, City Clerk
Approved as to Form:
14
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
MARY'S MERCY CENTER, INC.
S'o:z 'U ,~-
hoJ (... "';"',
1~'S (JJ/L=~d
jUjU
TABLE OF CONTENTS
OPERATIVE PROViSiONS......................................................................................................................................... I
I. Scope of Services.... .............................. .............................. ............. ......... ............. ......... .......................... ...... I
2. Time of Performance... ............................ .............................. ............ ......... .............. ......... .............................. I
3. Compensation and Method of Payment......... .... ...... ................ ............ ........... ..... .... .............. .......... ........ ........ I
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affirmative Action .......................... .............................. ............ ........... .......... ................. ........ ................ ........2
6. Discrimination .................. ................... ......... .......... ....... ............. ......... ............ ............ ................. ........... ........ 2
7. Accounting...... '" ............... .................. ........................... .............. .......... ........... ............. ............ ........... ..........2
8. Budget Section...... ................................. ........................... ............... ....... .......... .... ............ ........ ......................3
9. Non-Expendable Property .......................... ......................... ............. ......... ............ ............... ...........................3
10. Expendable Personal Property.. .................. ............ ............... ............. .......... .............. ..... ... .... .......... ...............3
11. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation........... ........................... ............... .......... ............ ............. .............. ........... ..........3
13. Revenue Disclosure Requirement..... ................ .............. ........... ........... ........... .............. ........... .............. ... .....4
14. Joint Funding... ............... ..................... ............................. ............ .......... ............ ................. .................... ........4
15. Notices................. ........................... ...... .............................. .................... .................. ...... ....... ............. .... .........4
16. Assignment............. .................... ................ ........................... .................... .......... ......... ........... .............. .... ...... 5
17. Termination and Termination Costs .......................... ............. ............ ........... ................. ............. ........ ............ 5
18. Program Income .................... ........ .................... ............ ............ ........... ........ ... .................... ................. .., ........6
19. Reversion of Assets .......... ............... ..................... ............ ............ ......... .................. ............. ................ ...........6
20. Fiscal Limitations .............................. ............................... ............... ........ .................. ............ ........... ............... 6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Hann1ess.................................................................................................7
23. Insurance Requirements ...... ................................... ................ ..... ....... ......... ............... ........................... ..........7
24. Conflict of Interest.............. ........................................ ............. ....................... ............ ............................ .........9
25. Budget Modifications................ .............. ................... .............. .......... ................ ......... ............... .......... ........... 9
26. Time of Performance Modifications.......... ... ................ ...... ....... .......... ........... .................. .......... .................. ... 9
27. Independent Contractor ..................... ........ ......... .... ........ ..... ....... .... ....... .......... ............... .... ........ ................... 10
28. Amendments; Variations ............ .......... ....................... ...... ............ ........ ............ ............ ................................ 10
29. Purchase and Invoice Deadlines ....................................................................................................................1 0
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Monitoring..... .................................... ......... ............ ............ .......... ......................... ..... ..:........... ...... 10
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds. ................ ........ ... ............ .................... ............... ...... ..... .......... ............. ......... ....... .............. ....... II
34. Religious Proselytizing or Political Activities ...............................................................................................11
35. Audits ................... .................. .................................... .............. .................... ......... ... .... ............ .............. ....... 12
36. Counterparts ............. ....................... ............ ............. ............... ............ .......... ............... ............ ............... ...... 13
37. Status of the Subrecipient ................. ............... ........ ....... ............ ......... ............ .............. ........... .... ........... ...... 13
38. Legal Proceedings ................... ............ ........................... ............ .... ........ ........... .............. ........... .......... ......... 13
39. Exhibits............. ...... .................... ............ .... ...................... ............. ......... ............ ............... ........ .............. ...... 13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project ActivitylDescription
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule ofPaymentslRequest for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 151 day of July, 2006, by and between the City of San
Bemardino, a municipal corporation, hereinafter referred to as the "City" and Mary's Mercy Center,
Inc., hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July I, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Thirteen Thousand Dollars ($13,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2006/2007 CDBG "budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement: Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference.. All
I
Requests for Reimbursement shall be submitted on a monthly basis in accordance with HOD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Summary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents ofthe area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hisJher Designee.
9. Non-Expendable Propertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (1) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or his/her designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal Propertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or his/her designee.
11. Purchase or Lease of Non-Expendable Propertv or Equipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request ofthe City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
3
Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Requirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (IS) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201. North "E" Street, Suite 301
San Bernardino, California 92401
4
To the Subrecipient:
Adrienne Schubert
Mary's Mercy Center, Inc.
P.O. Box 7563
San Bernardino, CA 92411
16. Assignment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or his/her designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or his/her designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or his/her designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient of his/her intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance ReQuirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of$I,OOO,OOO limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance forowned, hired and non-owned vehicles on a per occurrence basis with a combined
7
single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof ofInsurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Sub recipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
8
24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed sub grantees/subcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
sub grantees/subcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (I5) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
9
e. Do not alter the amount of compensation under this Agreement.
27. Independent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments; Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acquisition of Supplies and Equipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
his/her designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact ofthe program.
32. Monthly Progress Reports
By the fifth (5Ih) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
persons/households assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious Proselytizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
11
a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. Ifindications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
12
36. Counterparts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecioient
This Agreement shall not become effective until such time as the Director or hislher
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
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The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or his/her designee has reviewed and approved the form and
content of each exhibit.
13
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Mary's Mercy Center, Inc.
By:
By: &~--~.) "U LI-
For Mary's Mercy Center, Inc.
ATTEST:
By: ~1J~
Rache Clark, City Clerk
Approved as to Form:
14
ESG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
MARY'S MERCY CENTER
,
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AGREEMENT FOR USE OF EMERGENCY SHELTER GRANT FUNDS
THIS AGREEMENT, entered in this 1st day of July, 2006 by and between the CITY OF SAN
BERNARDINO, (hereinafter referred to as the "CITY") and Mary's Mercy Center, a California
non-profit corporation, (hereinafter referred to as the "SUBRECIPIENT");
WITNESSETH
WHEREAS, pursuant to Subtitle "B" of the Stewart B. McKinney Homeless Assistance Act
of 1987 (Public Law 100-77), (hereinafter referred to as the "Act"), the CITY has been awarded
Emergency Shelter Grant Program ("ESGP") funds which are to be used to improve the quality of
existing emergency shelters for the homeless, to help make available additional emergency shelters,
and to help meet the costs of operating emergency shelters and of providing certain essential social
services to homeless individuals, and;
WHEREAS, the CITY desires to contract with non-profit corporations for the use of ESGP
funds to provide various services for homeless individuals, and;
WHEREAS, the SUBRECIPIENT as a non-profit corporation, is eligible under the Act to
receive ESGP funds to provide those services as described herein.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
1. Term.
The term of this Agreement shall be for a period commencing on July 1, 2006, and
terminating on June 30, 2007, or as otherwise provided for in Section 5 herein.
2. Scope of Services.
The SUBRECIPIENT promises and agrees to provide certain emergency shelter grant
program services for homeless persons by utilizing the sum of Twenty Thousand Dollars
($20,000.00) in ESGP funds, as set forth in the manner provided in Exhibit "A" which is
attached hereto, and by this reference, incorporated herein. The SUBRECIPIENT shall also
provide homeless individuals with assistance in obtaining (i) appropriate supportive services,
including permanent housing, physical and mental health treatment, counseling, supervision,
and other services essential for achieving independent living, and; (ii) other federal, state,
local and private assistance provided hereunder shall be in full conformity with the Act, and
any amendments thereto, and the federal regulations and guidelines now, or hereinafter
enacted pursuant to the Act.
3. Matchiol!: Fuods.
The SUBRECIPIENT must supplement its emergency shelter gi-ant amounts with an equal
amount of funds from sources other than those provided herein and from non-federal sources.
These funds must be provided after the date of the grant award to the SUBRECIPIENT. The
SUBRECIPIENT may comply with this requirement by providing the supplemental funds
itself, or voluntary efforts or gifts in kind provided to the SUBRECIPIENT, as appropriate.
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4. Calculatinl! the Matchinl! Amount.
In calculating the amount of supplemental funds, there may be included the value of any
donated material or building(s), the value of the lease(s) on the building(s); any salary paid to
staff of the SUBRECIPIENT, or to any State or non-profit recipient, as appropriate, in
carrying out the Emergency Shelter Grant Program; and the time and services contributed by
volunteers to carry out the ESGP, determined at the rate of $5.00 per hour. For purposes of
this Section 4, the SUBRECIPIENT upon concurrence of the Executive Director (the
"Administrator") of the Redevelopment Agency of the City of San Bernardino ("Agency"),
the Administrator of the ESG Program, will determine the value of any donated material or
building(s) or any lease(s), or furnishings and equipment using any method reasonably
calculated to establish a fair market value.
5. Termination.
(a) Either party may terminate this Agreement upon thirty (30) days prior written notice to
the other party.
(b) Notwithstanding the provisions of Section 5(a), the CITY may suspend or terminate
this Agreement forthwith for cause, upon written notice to the SUBRECIPIENT of the
action being taken. Cause shall be established, (i) in the event the SUBRECIPIENT
fails to perform the covenants herein contained; (ii) in the event there is a conflict with
any federal, state or local law, ordinance, regulation or rule rendering any of the
provisions of this Agreement invalid or untenable, or; (iii) in the event the funding
from the United States Department of Housing and Urban Development (HUD),
referred to in the recitals herein, is reduced, terminated or otherwise becomes
unavailable. The CITY shall provide written notice to the SUBRECIPIENT within ten
(10) working days from the date HUD reduces, suspends or terminates the ESGP
funding. This Agreement may, at the discretion of the Administrator of the CITY, be
either terminated or amended to reflect said reduction offunds.
(c) Upon termination of this Agreement, the SUBRECIPIENT agrees to return any
unencumbered funds which it has been provided by the CITY. In accepting said
funds, the CITY does not waive any claim or cause of action it may have against the
SUBRECIPIENT for breach ofthis Agreement.
(d) Upon termination of this Agreement, the SUBRECIPIENT shall not mcur any
obligations after the effective date of such termination.
(e) Any provisions for inspection and audits relative to the expenditure of funds provided
for hereunder shall not be ended upon the date of any termination but shall continue
thereafter as specified herein.
(f) SUBRECIPIENT will be required to cooperate and work in collaboration with City
departments, to include but not limited to: Police Department, Fire Department and
Code Compliance and the Agency in an effort to promote the well-being of citizens
and aid in reduction of crime, blight and unsafe living conditions. From time to time,
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SUBRECIPIENT may be required to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 5. Termination. of this Agreement.
6. Payment of Funds.
The Mayor and Common Council of the CITY shall determine the final disposition and
distribution of all funds received by the CITY under the Act. On behalf of the CITY, the
Agency shall make payments of ESGP funds to the SUBRECIPIENT for the purposes set
forth in Exhibit "A" and shall monitor the expenditure of funds and activities of the
SUBRECIPIENT to ensure compliance with applicable federal regulations and the terms of
this Agreement. The SUBRECIPIENT shall establish and maintain a separate account for all
ESGP funds received under this Agreement and deposit all such funds in said account.
All disbursements ofESGP funds by the Agency will be made in the following manner:
(a) Payments shall be made on a reimbursement basis and made within thirty (30) days
after the SUBRECIPIENT has submitted written notice identifying payments made
and requesting reimbursement. Payments shall be based on documented expenses by
the SUBRECIPIENT, for the purposes set forth in Exhibit "B" approved by the
Administrator, or his/her designee. The Agency shall reimburse on a monthly basis,
1/12 of the SUBRECIPIENT's ESGP funds.
(b) In no event shall the CITY or the Agency, or any of its officers, agents or employees,
be held liable for expenses incurred by the SUBRECIPIENT in excess of the ESGP
allocation noted in Section 2, entitled "Scope of Services."
(c) Payments may be withheld if, on a determination by the Administrator, the
SUBRECIPIENT has not complied with the covenants herein contained at such times,
and in such manner as provided in this Agreement.
(d) No later than thirty (30) days prior to the date set forth herein for termination of this
Agreement, the SUBRECIPIENT shall provide the CITY or Agency with its estimate
of the amount of funds which will remain unexpended upon such termination.
Notwithstanding any provisions contained in this Section 6, the Agency, through its
Administrator, shall thereafter, upon reasonable notice provide to the SUBRECIPIENT, have
the right to (i) reduce the payment of funds hereunder, (ii) renegotiate the actual levels of
expenditures in the event the SUBRECIPIENT's rate of expenditures will result in
unexpended funds at the expiration of this Agreement, and/or; (iii) fe-program funds
associated with this Agreement in which the Administrator finds there has been no substantial
progress or activity.
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7. Documentation. Reports. Inspections and Performance Evaluations.
(a) Documentation of Expenditures. All expenditures supported by properly executed
payrolls, time records, invoices, contracts, vouchers, receipts, orders and any other
accounting documentation pertaining, in whole or in part, to this Agreement, shall be
clearly identified and readily accessible. The SUBRECIPIENT shall maintain and
keep available all such documents for a period of not less than three (3) years from the
termination of this Agreement, if a CITY, Agency, state and/or federal audit has
occurred within six (6) months prior to date of termination, and for a period of not less
than five (5) years from said date if such audit has not occurred. In the event of audit
exception, such documentation shall be maintained until every exception has been
cleared to the satisfaction of the auditing authority.
(b) Reports. The SUBRECIPIENT, at such times and on such forms as the Agency may
require, shall furnish the Agency such statements, records, reports, data and
information as the Agency may request pertaining to its performance of services
hereunder and other matters covered by this Agreement. The SUBRECIPIENT shall
establish and maintain records in accordance with the Office of Management and
Budget (OMB) Circulars Numbered A-IIO and A-112, respectively, as applicable to
the acceptance and use of emergency shelter grants.
(c) Inspections. The SUBRECIPIENT shall make available to the CITY and/or Agency,
state and/or federal officials its records and data with respect to all matters covered by
this Agreement for inspection and audit, which inspection and audit may be made at
any time after reasonable notice. The SUBRECIPIENT shall comply with the audit
requirements of OMB Circular Number A-II 0, as applicable, and as they relate to the
acceptance and use of federal funds under this Agreement.
(d) Performance Evaluations. The SUBRECIPIENT shall permit CITY and/or Agency,
state and/or federal officials to monitor, assess or evaluate the SUBRECIPIENT's
performance under this Agreement on at least a monthly basis, said monitoring,
assessment or evaluation to include, but not be limited to, audits, inventory,
inspections within the program area, and interviews with the SUBRECIPIENT's
employees, agents, independent contractors and subcontractors, providing the services
under this Agreement and recipients thereof.
(e) This Agreement contemplates that the SUBRECIPIENT will pay salaries, utilities and
furnishings with the monies provided in accordance with Exhibit "B" and Section 2
Scope of Services, of this Agreement.
8. Duildin!! or Facilitv.
(a) Any building for which emergency shelter grant amounts are used for renovation,
conversion, or major rehabilitation, must meet local safety.and sanitation standards.
(b) When ESGP funds are utilized to provide emergency shelter for the homeless in hotels
or motels or other commercial facilities providing transient housing, (i) the
SUBRECIPIENT, at the request of the CITY and/or Agency, shall execute an
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Agreement with the provider of such housing which provides that comparable living
space, in terms of quality, available in the facility for use as emergency shelters for at
least the same period of time as provided in Section 9 herein, and; (ii) leases
negotiated between the SUBRECIPIENT and the provider of such housing shall make
available such living space at substantially less than the daily room rate otherwise
charged by the facility and; (iii) the SUB RECIPIENT shall certify, in writing, to CITY
and/or Agency that it has considered using other facilities as emergency shelter for the
homeless in the City.
(c) The SUBRECIPIENT shall ensure that any building or facility is utilized exclusively
for secular purposes and is made available to all person regardless of religion. If
ESGP funds are used to renovate, rehabilitate, or convert buildings owned by
primarily religious organization or entities, the SUBRECIPIENT shall comply with
the provisions of Title 24, Code of Federal Regulations, Part 575.21(b)(2).
(d) The SUBRECIPIENT shall comply with the Uniform Federal Accessibility Standards
(24 CFR, Part 40, Appendix "A"), when activities funded by the ESGP involve major
rehabilitation or conversion.
9. Maintenance as a Homeless Facilitv.
(a) The SUBRECIPIENT shall maintain any building for which ESGP funds are used for
not less than a three (3) year period, or for not less than a ten (10) year period if the
grant amounts are used for major rehabilitation or conversion of the building.
(b) The three (3) or ten (10) year periods begin to run, (i) on the date of initial occupancy
as an emergency shelter for the homeless when the building utilized was not operated
as an emergency shelter for the homeless before receiving ESGP funds, or; (ii) on the
date that ESGP funds are first obligated to the shelter when the building was operated
as an emergency shelter before receiving ESGP funds, or; (ii) on the date that ESGP
funds are first obligated to shelter when the building was operated as an emergency
shelter before receiving ESGP funds.
(c) When ESGP funds are used exclusively to provide essential services including, but not
limited to, services concerned with employment, physical or mental health, substance
abuse, education, food, equipment or furnishings, the time periods noted in (a) above
are not applicable.
10. Independent Capacity.
The SUBRECIPIENT, and its officers, employees and agents, shall act in an independent
capacity during the term of this Agreement and shall not act as, shall not be, nor shall they in
any manner be construed to be officers, employees, or agents of the CITY and/or the Agency
or the State of California.
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P:'l'~l'<nus\ESGFonusI2006-2001IJ006-2007ESGAar_Mqe.dox
11. Assil!:nabilitv.
The SUBRECIPIENT cannot assign any of its rights, duties or obligations pursuant to this
Agreement to any person or entity without the prior written consent of the CITY or the
Agency. This includes the ability to subcontract all, or a portion of, its rights, duties and
obligations hereunder.
12. Insurance.
The SUBRECIPIENT shall during the term ofthis Agreement:
(a) Procure and maintain Workers' Compensation Insurance as prescribed by the laws of
the State of California.
(b) Procure and maintain comprehensive general and automobile liability insurance as
shall protect the SUB RECIPIENT from claims for damages for personal injury,
including accidental and wrongful death, as well as from claims for property damage,
which may arise from activities or programs under this Agreement, whether such
activities or programs by the SUBRECIPIENT, by any subcontractor or by any
officer, employee or agent of either of them.
Such insurance shall name the CITY and the Agency, their officers, officials,
attorneys, agents, employees, volunteers and independent contractors as additional
insureds with respect to this Agreement and the obligations of the SUBRECIPIENT
hereunder. Such insurance shall provide for combined coverage limits of not less than
$1,000,000 per occurrence.
(c) Furnish the CITY and the Agency with policies of insurance, prior to request for first
reimbursement for ESGP funds showing that such insurance is in full force and effect,
and that the CITY and the Agency are named as additional insureds with respect to
this Agreement and the obligations of the SUBRECIPIENT hereunder. Further, said
policies shall contain the covenant of the insurance carrier that thirty (30) days written
notice will be given to the CITY and the Agency prior to modification, cancellation, or
reduction in coverage of such insurance.
13. Hold Harmless.
The SUBRECIPIENT shall indemnify and hold the CITY and the Agency, their officers,
officials, attorneys, agents, employees, volunteers and independent contractors free and
harmless from any liability whatsoever, including wrongful death, based or asserted upon any
act or omission of the SUBRECIPIENT, its officers, agents, employees and independent
contractors in any legal action based upon such alleged acts or omissions. The specific
insurance coverage required in Section 12 shall in no way limit or circumscribe the
SUBRECIPIENT'S obligation to indemnify and hold the CITY l!lld the Agency harmless as
set forth in this Section 13.
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14. Federal Requirement.
(a) The SUBRECIPIENT shall comply with the provIsIOns of the Act, and any
amendments thereto, and the federal regulations and guidelines now or hereinafter
enacted pursuant to the Act. More particularly, the SUBRECIPIENT is to comply
with those regulations found in Part 575 of Title 24 of the Code of Federal Regulations
and OMB Circulars Numbered A-110 and A-ll2, respectively, and appropriate
attachments for non-profit organization contractors.
(b) The SUBRECIPIENT represents that it is, or may be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by, or in connection with, a religious or denominational
institution or organization.
(c) The SUBRECIPIENT agrees that, in connection with the services to be provided
hereunder, (i) it will not discriminate against any employee or applicant for
employment on the basis ofreligion and will not limit employment or give preference
in employment to persons on the basis of religion; (ii) it will not discriminate against
any person applying for such services on the basis of religion and will not limit such
services or give preference to persons on the basis of religion; (iii) it will provide no
religious instruction or counseling, conduct no religious workshop or services, engage
in no religious proselytizing and exert no other religious influence in the provision of
such services; (iv) the portion of a facility used to provide services assisted, in whole
or in part, under this Agreement shall contain no sectarian or religious symbols or
decorations, and; (v) the funds received under this Agreement shall not be used to
construct, rehabilitate, or restore any facility which is owned by the SUBRECIPIENT
in which the services are to be provided; provided that, minor repairs may be made if
such repairs are directly related to the services; are located in a structure used
exclusively for non-religious purposes, and; constitute in dollar terms only a minor
portion of the ESOP expenditure for the public services.
(d) The SUB RECIPIENT shall comply with the Housing and Community Development
Act (HCD Act) of 1992 (Public Law 102-550, approved October 28, 1992), which
requires the involvement of, to the extent practicable, homeless individuals and
families and operating facilities assisted under the ESOP in providing services for
occupants ofthese facilities (42 US.C. 11375(c)(7), as added by Section 1402 (b)). .
(e) The SUBRECIPIENT shall comply with HCD Act, Section 1402 (d), which requires
that termination of assistance to any individual or family be in accordance with a
formal process, which may include a hearing, established by the SUBRECIPIENT.
15. Compliance with Law.
The SUBRECIPIENT shall comply with all federal, state and . local laws and regulations
pertinent to its operation and services to be performed hereunder, and shall keep in effect any
and all licenses, permits, notices and certificates as are required thereby. The
SUBRECIPIENT shall further comply with all laws applicable to wages and hours of
employment, occupational safety and to fire safety, health and sanitation.
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16. Comprehensive Homeless Assistance Plan.
The SUBRECIPIENT shall cooperate with the CITY and the Agency in undertaking
emergency shelter grant activities and shall assist the CITY and the Agency in carrying out
the Comprehensive Homeless Assistance Plan and any other applicable strategies
implemented by the CITY and the Agency and shall act in conformity therewith.
17. Non-Discrimination and Eaual Opportunitv Compliance.
The SUBRECIPIENT hereby certifies compliance with the following:
(a) Executive Order Number 11246, as amended, and the regulations issued thereunder at
Title 41, Code of Federal Regulations, Chapter 60;
(b) Title VI and Title VII of the Civil Rights Act of 1964 (423 V.S.C. Section 2000(d) et.
seq.), as amended by the Equal Opportunity Act of March 24, 1972, (Public Law
Number 92-261);
(c) Title VIII of the Civil Rights Act of 1968 (42 V.S.C. Sections 3601-3619) and
implementing regulations issued pursuant thereto (24 CFR, Part 1);
(d) Executive Order Number 11063 and implementing regulations issued pursuant thereto
(25 CFR, Part 107);
(e) Age Discrimination Act of 1975 (42 V.S.c., Sections 6101-6107);
(f) Section 504 ofthe Rehabilitation Act of 1973 (29 V.S.C., Section 794), and;
(g) Executive Orders Numbered 11625, 12432 and 12138 consistent with HVD's
responsibilities under these Orders, the SUBRECIPIENT must make efforts to
encourage the use of minority and women owned business enterprises in connection
with ESGP activities;
(h) The SUBRECIPIENT shall establish and maintain a procedure through which
homeless individuals will be informed of the facilities and services available to all on
a nondiscriminatory basis.
(i) SUBRECIPIENT agrees to abide by, and include in any subcontracts to perform work
under this Agreement, the following clause:
"During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors shall not unlawfully discriminate against any employee or application
for employment because of race, religion, color, nation~l origin, ancestry, physical
handicap, medical condition, marital status, age (over 40), or sex. The
SUBRECIPIENT and subcontractors shall ensure that the evaluation and treatment of
their employees and applications for employment are free of such discrimination.
8
P:II'llnus\HauWI Fonll~ FomI1\2OO6.2007\2006-2OD7 ESG Awccmall Mor&e-doc
The SUBRECIPIENT and subcontractors shall comply with the provisions of the Fair
Employment and Housing Act (Government Code, Section 12900 et. seq.). The
applicable regulations of the Fair Employment and Housing Commission
implementing Government Code Section 12990, set forth in Chapter five (5) of
Division four (4) of Title two (2) of the California Administrative Code are
incorporated into this Agreement by reference and made a part hereof as if fully set
forth at length.
The SUBRECIPIENT and its subcontractors shall give written notice of their
obligations under this clause to labor organizations with which they have collective
bargaining or other agreement."
(j) The equal opportunity clause continued in Section 202 of Executive Order Number
11246, as amended, is hereby incorporated into this Agreement by this reference.
(k) During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors, if any, shall not deny the benefits rendered hereunder to any person on
the basis of religion, color, ethnic group identification, sex, age or physical or mental
disability.
(I) The SUBRECIPIENT shall furnish all information and reports as required by
Executive Order Number 11246, as amended.
(m) The SUBRECIPIENT shall include the non-discrimination and compliance provisions
of the equal opportunity clause in all subcontracts, if any.
18. Affirmative Action Compliance.
Each SUBRECIPIENT or subcontractor with less than fifty (50) employees shall comply with
Section 202, Part II, of Executive Order Number 11246, as amended. The SUBRECIPIENT
shall ensure that subcontractors, if any, falling within the scope of this provision shall comply
in full with the requirements thereof
19. Conflict oflnterest.
No person who is (i) an employee, agent, consultant, officer, or elected or appointed official
of the CITY, the Agency, state or the SUBRECIPIENT that receives ESGP funds and who
exercises or has exercised any functions or responsibilities with respect to assisted activities,
or; (ii) in a position to participate in a decision making process or gain inside information with
regard to such activities, may obtain a personal or financial interest or .benefit from the
activity, or have an interest in any contract, subcontract or agreement with respect thereto, or
the proceeds thereunder, either for himself or herself or those with whom he or she has family
or business ties, during his or her tenure or for one (I) year thereafter.
20. Elieibilitv of Contractors and Subcontractors.
No ESGP funds allocated to the SUBRECIPIENT through this Agreement may be used,
directly or indirectly, to employ, award contracts to, or otherwise engage the services of, or
9
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purchase the goods of, or fund any contractor or subcontractor during any period of
debannent, suspension, or placement in ineligibility status under the provision of 24 CFR,
Part 4.
21. Lead Based Paint.
The SUBRECIPIENT and all subcontractors, if any, shall comply with the requirements, as
applicable, of the Lead-Based Paint Poisoning Prevention Act (42 D.S.C., Section 4821-4846)
and implementing regulations issued pursuant thereto (24 CFR, Part 35).
22. Flood Insurance.
No site proposed on which renovation, major rehabilitation, or conversion of a building, is to
be assisted under this part, other than by grant amounts allocated to the state, may be located
in an area that has been identified by the Federal Emergency Management Agency as having
special flood hazards, unless the community in which the areas is situated is participating in
the National Flood Insurance Program and the regulations issued thereunder (44 CFR, Parts
59-79) or less than a year has passed since the Federal Emergency Management Agency
notification regarding such hazards, and the SUBRECIPIENT will ensure that flood insurance
on the structure is obtained in compliance with Section 102(a) of the Flood Disaster
Protection Act of 1973, (42 D.S.C., Section 4001 et. seq.).
23. Notice.
Any notices required or desired to be served by either party upon the other shall be addressed
to respective parties as set forth below (or to such other addresses as from time to time may be
designated, in writing, by the respective parties):
AS TO AGENCY:
AS TO SUBRECIPIENT:
Maggie Pacheco, Executive Director
Economic Development Agency
201 North "E" Street, Suite 301
San Bernardino CA 92401-1507
Adrienne Schubert, Executive Director
Mary's Mercy Center
641 Roberds Avenue
San Bernardino, CA 92411
24. Sindin!! Successors.
The SUBRECIPIENT, its heirs, assigns and successors in interest shall be bound by all the
provisions contained in this Agreement, and all of the parties thereto shall be jointly and
severally liable hereunder.
25. Assurances.
The SUBRECIPIENT certifies that it has the legal authority to enter into and meet the
requirements of this Agreement.
10
P:'J'cnI~.m,"-1\J!SG Formll2~2007\2006.2007I!SQAar_mlMcqe.doc
26. Lel!al Proceedinl!s.
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this Agreement between the parties it should be filed in San Bernardino County
Superior Court. The prevailing party shall be entitled to recover its reasonable legal fees.
The costs, salary and expenses of the City Attorney and members of his office in enforcing
this Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this section.
27. Entire Al!reement.
This Agreement is intended by the parties hereto as the final and exclusive expression of these
provisions contained in this Agreement and it supersedes and replaces any and all prior and
contemporaneous agreements and understandings, oral or written, in connection therewith.
This Agreement may be modified or changed only upon the written consent of the parties
hereto.
28. No Third Party Beneficiaries.
1111
1111
1111
1111
1111
1111
1111
1111
1111
1111
1111
1111
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No third party shall be deemed to have any rights hereunder against any of the parties hereto
as a result of this Agreement.
P;lJ'onus\IIouIUa, f'cnu\ESG 1'oon$\2OO6-2007\2Q06.2OO1 ESG A&mnIc:n1 McrF.doc:
11
IN WITNESS WHEREOF, the parties hereto have hereunto their hands and seals this day and
year first above written.
CITY OF SAN BERNARDINO
Mar)lsMen;yO:nrer
a California non-profit corporation
~~~Yor
ATTEST
~
~.u;... ) JLL/
Executive Director
City of San Bernardino
Rachel~lef C./ 4
Approved as to Form:
12
PlfonmlHoalinIFormslESGformll2006-200?\200b-2001ESGAaJeemmIM<<IC_doc
,~ !1~! ?0
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:.:1 9: 28
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, .
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
. and
ARROWHEAD UNITED WAY
TABLE OF CONTENTS
OPERATIVE PROVISIONS..........................................................................................................................................1
1. Scope of Services ...................................................... ......................................................................................1
2. Time of Performance.......................................................................................... .. ...........................................1
3. Compensation and Method of Payment............................................................................................. ..............1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affirmative Action ..........................................................................................................................................2
6. Discrimination.................................................................................................................................................2
7. Accounting ......................................................................................................................................................2
8. Budget Section .............................................................................. ..................................................................3
9. Non-Expendable Property ...............................................................................................................................3
10. Expendable Persona! Property .......................................................................... ...............................................3
11. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ............................................................................................. ..............................3
13. Revenue Disclosure Requirement ............................................................................................,......................4
14. Joint Funding ...................................................................................................... .............................................4
15. Notices........................................................................................................................................ .....................4
16. Assignment.........................................................................:............................................................................5
17. Termination and Termination Costs .......................................... .................................................... ..................5
18. Program Income ........................................................ ................................................... ........ ...........................6
19. Reversion of Assets .........................................................................................................................................6
20. Fiscal Limitations .............................................................................................................. .............................. 6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Iodemnification, and Hold Harmless................................................................................................. 7
23. Insurance Requirements ............ ........................................................................................ .............................. 7
24. Conflict of Interest...........................................................................................................................................9
25. Budget Modifications ......... ........................................................................................................ ..... ................9
26. Time of Performance Modifications............ ....................................................................................................9
27. Independent COntrsctor.................................................................................................................................1 0
28. Amendments; Varistions .......................................................................... ......................................:..............1 0
29. Purchase and Invoice Deadlines ....................................................................................................................1 0
30. Acquisition of Supplies and Equipment .................... ....................................................................................1 0
31. Program Monitoring ......................................................................................................................................1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds..................................................................................................... .............................................11
34. Religious Proselytizing or Political Activities ...............................................................................................11
35. Audits ....................................................................,.......................................................................................12
36. Counterparts ............................................................................................................. .....................................13
37. Status of the Subrecipient..............................................................................................................................13
38. Legal Proceedings ............................................................................................................................~............13
. 39. Exht'bits..........................................................................................................................................................13
EXHIBIT 1
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
. EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project ActivitylDescription
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule of Payments/Request for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Complisnce Report
I
AGREEMENT
This Agreement is entered into this I st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Arrowhead United
Way, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality oflife ofits citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scone of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July I, 2006, .and shall be completed
no later than June 30, 2007.
3. Comnensation and Method ofPavment
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Ten Thousand Dollars ($10,000.00) which the Mayor and Common Council
approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall constitute
full and complete compensation for performance by the Subrecipient of the Services under
this Agreement. Method of payment shall be in the form of a Request for Reimbursement in
accordance with the terms and conditions set forth on Exhibit "6" to this Agreement, a copy
of which is attached hereto and incorporated herein by this reference. All Requests for
1
Reimbursement shall be submitted on a monthly basis in accordance with HUD regulations
"Audit Ready." The Redevelopment Agency of the City of San Bernardino (the "Agency")
on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total allocation
beginning the month of July 2006. Verifiable supporting documentation of expenditures for
services rendered, plus proof of payment all acceptable to the City in the sole discretion of
the City shall be submitted prior to any payment by the City to the Subrecipient. Supporting
statements shall give the total of said monthly expenses and shall also itemize the same in
detail conforming to the Budget Summary set forth on Exhibit "2". After timely receipt of
each supporting statement, the City will draw a warrant within thirty (30) days in favor of the
Subrecipient for the total amount of the Request for Reimbursement approved by the City.
The City will reject and return reimbursement requests not properly and/or completely
submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 andA-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to.
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
2
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-Exoendable Prooertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (1) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Exoendable Personal Prooertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
11. Purchase or Lease ofNon-Exoendable Prooertv or Eauioment
The Subrecipient shall obtain three docwnented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. - All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
3
Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14 . Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 9240 I
4
To the Subrecipient:
Doug Rowand
Arrowhead United Way
646 North "D" Street
San Bernardino, CA 92402
16. Assilmrnent
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after tennination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs "result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a tennination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Tennination Costs. Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or tennination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or tennination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the Ilational objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
detennined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property. "
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shan any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertaimnent. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertaimnent, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shan assume liability for any and an direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Requirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of $ 1,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
7
single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating of B+ VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgrantees/subcontractors, vendors or personal service providers, including subsidiaries _
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than siJpplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition of Supplies and Eauipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
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accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will pennit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the plarmed program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reoorts
By the fifth (stn) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
persons/households assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Relilrious Proselytizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in counection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in cOnIlection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (1) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives, shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counteroarts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the SubreciDient
This Agreement shall not become effective until such time as the Director or his/her
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defmed in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforCe, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or his/her designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as oftbe day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Arrowhead United Way
BY'p,tri~~
City of San rnardino
By: D~P~
For Arrowh mted Way
ATTEST:
By: ~"h.~
Rachel lark, City Clerk
Approved as to Form:
BY:Jam~~~i!0L~
14
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
HIGHLAND SENIOR CENTER
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TABLE OF CONTENTS
OPERATNE PROVISIONS.........................................................................................................................................1
1. Scope of Services ............................................................................................................................................1
2. Time of Perfonnance ............................................................................................... ........................................ 1
3. Compensation and Method ofPayment...........................................................................................................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affmnative Action ..........................................................................................................................................2
6. Discrimination ....... ..........................................................................................................................................2
7. Accounting ........ ............................. ..................................... .................................. .......................................... 2
8. Budget Section ............................. .......... ............................ .... ..... ....................................................................3
9. Non-Expendable Property ................ .......... .....................................................................................................3
10. Expendable Personal Property .................... ................... ..................................................................................3
II. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Funding ...................................................................................................................................................4
15. Notices................................................................................................. ........... .......... .......................................4
16. Assignment............................................................................................ ..........................................................5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ......... ........................................................................ .......... ................................ ....... ............ 6
19. Reversion of Assets ........................................................................... .......... ......................... ..... ............... ....... 6
20. Fiscal Limitations ........................................................................ ................ .............. ............ ........ ............. ..... 6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Hannless.................................................................................................7
23. Insurance Requirements .................................................... ...... .................................. ...................................... 7
24. Conflict of Interest...................................... ...................... ....................................... ............... ......................... 9
25. Budget Modifications ................. .................................... ......................... .............. .......................................... 9
26. Time of Perfonnance Modifications.. .............. ............... ......................... .............. ............. ............................. 9
27. Independent Contractor ................................................ ........................... .......... ................ ...... ................. .....1 0
28. Amendments; Variations ................................. .......... ............................ .......... ............. ................ ........... ......I 0
29. Purchase and Invoice Deadlines ....................................................................................................................10
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Monitoring .................................................................... ...... ........... ............ ............ ......................... 10
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds.......................................................................................... ........................................................11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ............................................................................................................................................................12
36. Counterparts .................... ............... .... ..................................................... ......................................................13
37. Status of the Subrecipient..............................................................................................................................13
38. Legal Proceedings .........................................................................................................................................13
39. Exhibits.......................................................................................................................................................... 13
EXHIBIT 1
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project Activity/Description
Budget Summary
Bndget Justification - Part 1 (Service/Supplies)
Maintenance and Opemtion Commitment
Schedule ofPaymentsIRequest for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Highland Senior
Center, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (RUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
BUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
I. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Ten Thousand Dollars ($10,000.00) which the Mayor and Common Council
approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall constitute
full and complete compensation for performance by the Subrecipient of the Services under
this Agreement. Method of payment shall be in the form of a Request for Reimbursement in
accordance with the terms and conditions set forth on Exhibit "6" to this Agreement, a copy
of which is attached hereto and incorporated herein by this reference. All Requests for
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Reimbursement shall be submitted on a monthly basis in accordance with HUD regulations
"Audit Ready." The Redevelopment Agency of the City of San Bernardino (the "Agency")
on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total allocation
beginning the month of July 2006. Verifiable supporting documentation of expenditures for
services rendered, plus proof of payment all acceptable to the City in the sole discretion of
the City shall be submitted prior to any payment by the City to the Subrecipient. Supporting
statements shall give the total of said monthly expenses and shall also itemize the same in
detail conforming to the Budget Summary set forth on Exhibit "2". After timely receipt of
each supporting statement, the City will draw a warrant within thirty (30) days in favor ofthe
Subrecipient for the total amount of the Request for Reimbursement approved by the City.
The City will reject and return reimbursement requests not properly and/or completely
submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents ofthe area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-Expendable Property
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal Property
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
II. Purchase or Lease of Non-Expendable Property or Eauipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (I) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
3
Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (IS) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBa funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
IS. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
20 I North "E" Street, Suite 30 I
San Bernardino, California 92401
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To the Subrecipient:
Penny Lilbum
Highland Senior Center
3102 East Highland Avenue
San Bernardino, CA 92369
16. Assignment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
innnediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.x
20. Fiscal Limitations
HUD may in the future place progranunatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or his/her designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhis/her intention to so act. In no event, however, shaH any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and aH
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance ReQuirements
The Subrecipient shaH secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of $ 1,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed sub grantees/subcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgrantees/subcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Independent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition ofSuoolies and Eauioment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
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accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reports
By the fifth (5Ih) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious Proselvtizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (1) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counteroarts
This Agreement may be executed in counterparts. When executed, each counterpart shaH be
deemed an original, irrespective of date of execution. Said counterparts shaH together
constitute one and the same Agreement.
37. Status of the Subrecioient
This Agreement shaH not become effective until such time as the Director or hislher
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it wiH take any and aH necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shaH forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or coHect funds or otherwise
affect this agreement between the parties, it shaH be filed in San Bernardino County Superior
Court. The prevailing party shaH be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
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The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly fiHed out and fuHy executed each exhibit to this Agreement, as
required, and the Director or hislher designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Highland Senior Center
By:
For Highland Seni
ATTEST:
By:~h.~
Rache Clark, City Clerk
Approved as to Form:
/(
,
. ~lt46
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CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
LIBRERIA DEL PUEBLO, INC.
TABLE OF CONTENTS
OPERA TNE PROVISIONS.........................................................................................................................................1
I. Scope of Services .... ........................................................... ........... .......... .......... ..............................................1
2. Time ofPerfonnance .......................................................... ...... .................. .....................................................1
3. Compensation and Method ofPayment...........................................................................................................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affirmative Action .................................................... ........ .......................... ...... ................................. .............2
6. Discrimination. ......................................................................... ....... ................................................................2
7. Accounting .................................... ................. .......................... ............... ........................................................2
8. Budget Section ........................................... .....................................................................................................3
9. Non-Expendable Property ............... ................... .......................................................................................... ...3
10. Expendable Personal Property .. .......... ................... ......................................... ............................. ....................3
II. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Orant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Funding ................ ................... ....................... ...................................................... ......... ........ ............. .....4
15. Notices..................... .................................................................................... .................... ........... .............. .......4
16. Assignment............. ..................................................... .................. .................. ..... ................ .............. ............. 5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ............................................................. ...................... ............................................ ...............6
19. Reversion of Assets ...................................... ......................................................................................... .......... 6
20. Fiscal Limitations ......................... ............................................................................................................ ....... 6
21. Use of Funds for Entertainment, Meals or Oifts..............................................................................................7
22. Release, Indemnification, and Hold Hann1ess................................................................................................. 7
23. Insurance Requirements ....... ................. ....... ..................................................... ............................ .................. 7
24. Conflict of Interest............ ............ ............... ......... ............................................... .................. ........ .................. 9
25. Budget Modifications ......................... .................. ............................................... ...... .................. ....... ............. 9
26. Time ofPerfonnance Modifications........................... ..... ............... ............... ........................... ......... .............. 9
27. Independent Contractor ............................................................................ ............... ....... ...............................1 0
28. Amendments; Variations .............. ................................. .............. .................................... ..................... .........1 0
29. Purchase and Invoice Deadlines ....................................................................................................................1 0
30. Acquisition of Supplies and Equipment ........................................................................................................1 0
31. Program Monitoring ......................................................................................................................................1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds.............................................................................................. ....................................................11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits .......................................................................... ......................... ...... ........ ........ ..... ..............................12
36. Counterparts ............................................................. .................... .............. ...................................................13
37. Status of the Subrecipient..............................................................................................................................13
38. Legal Proceedings ........... ........................... ........................................................................ ....... ....... ............ .13
39. Exhibits........................... ............................ ........ ............................................. ................... ...........................13
EXHffiIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project Activity/Description
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule ofPaymentslRequest for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBO Compliance Report
AGREEMENT
This Agreement is entered into this 1 st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Libreria Del Pueblo,
Inc., hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "1" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Ten Thousand Dollars ($10,000.00) which the Mayor and Common Council
approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall constitute
full and complete compensation for performance by the Subrecipient of the Services under
this Agreement. Method of payment shall be in the form of a Request for Reimbursement in
accordance with the terms and conditions set forth on Exhibit "6" to this Agreement, a copy
of which is attached hereto and incorporated herein by this reference. All Requests for
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Reimbursement shall be submitted on a monthly basis in accordance with HUD regulations
"Audit Ready." The Redevelopment Agency of the City of San Bernardino (the "Agency")
on behalf of the City, wiJl reimburse the Subrecipient one-twelfth (1/12) of total aJlocation
beginning the month of July 2006. Verifiable supporting documentation of expenditures for
services rendered, plus proof of payment aJl acceptable to the City in the sole discretion of
the City shall be submitted prior to any payment by the City to the Subrecipient. Supporting
statements shaJl give the total of said monthly expenses and shaJl also itemize the same in
detail conforming to the Budget Summary set forth on Exhibit "2". After timely receipt of
each supporting statement, the City wi\l draw a warrant within thirty (30) days in favor of the
Subrecipient for the total amount of the Request for Reimbursement approved by the City.
The City wi\l reject and return reimbursement requests not properly and/or completely
submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and wi\l continue to
comply with the Act and aJl applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federaJly-assisted program. This Agreement is subject to aJl such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shaJl make every effort to ensure that all projects funded whoJly or in part
by HUD CDBO funds shaJl provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shaJl make every effort to employ
residents of the area and shaJl keep a record of the positions that have been created directly or
as a result ofthis program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generaJly accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Sununary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-Expendable Propertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (1) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal PropertY
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval ofthe Director or hislher designee.
11. Purchase or Lease of Non-Expendable Propertv or Equipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reouirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (IS) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
IS. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
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To the Subrecipient:
Father Patricio Guillen
Libreria Del Pueblo, Inc.
251 Carousel Mall
San Bernardino, CA 92401
16. Assignment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or his/her designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
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the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place progranunatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities ofthe Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance ReQuirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of$I,OOO,OOO limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgrantees/subcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Independent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition of Supplies and Eauipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
his/her designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reports
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
persons/households assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious Proselytizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title 1 of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counteroarts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecioient
This Agreement shall not become effective until such time as the Director or his/her
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes ofthis paragraph.
39. Exhibits
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or his/her designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Libreria Del Pueblo, Inc.
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For Libreria Del Pueblo, Inc.
ATTEST:
By:~h.~.
Rache Clark, City Clerk
Approved as to Form:
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an, City Attorney
s.
14
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CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
ST. BERNARDINE MEDICAL CENTER FOUNDATION
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TABLE OF CONTENTS
OPERATIVE PROVlSIONS.........................................................................................................................................1
I. Scope of Services ................................ ....... ........ ................... .......... ........ ............. ......... ........... .......................1
2. Time of Performance ..................................... ...... ...... ........... ................ ............ ........................ .................. .....1
3. Compensation and Method ofPayment........................................................................................................... I
4. Compliance with Laws and Assurances ..........................................................................................................2
5. AffIrmative Action................ ......................................... .............. .................. ............ ........... ........................ ..2
6. Discrimination ........................... .... ..... .......................................... ................. ............. .......... ......... ..... .............2
7. Accounting.... ... ................................. ... .... ........ ..... ...................... ............ ...... .......... ............ .......... ...... ............2
8. Budget Section....... ......................................... ....... ................ .................. ........... .............. ............. ...... ...........3
9. Non-Expendable Property .............................. ....... ............... ................. .......... ............... ........ .... ...... ...... .........3
10. Expendable Personal Property... .................................. ...... ............. ................. ........... ................. .... ............ ....3
I!. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement .. ................ ........................... ..................... ............ ................ .................. ...4
14. Joint Funding.. .................................. ......... ........... ..................... .......... ..... ... ............... .............. .......................4
15. Notices.............. ......... ............................................... ...... ......... .......... ..... .................... ................ .....................4
16. Assignment ........... ........... .................... .... ................ .............. ........... ........ ............ .................... .......................5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ........................ ...... ............................................. ................... ............... ............. ..... ....... .... .... 6
19. Reversion of Assets ................. ........................... ...................... ................... ............... ................ .....................6
20. Fiscal Limitations ....... .... .................... .... .................. ... ... ........ ................. .......... ......... .............. .......... ............. 6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Harmless................................................................................................. 7
23. Insurance Requirements ................ .......... ..................... ................ ..................... ................. .............. ...............7
24. Conflict of Interest............... ...................... ......... ....................... ...................... .............. .............. ............... .....9
25. Budget Modifications ........................................... ..................... .................... ................. ............ ..................... 9
26. Time of Perfonnance Modifications........................ ................. .................... .............. .............. ............... ........ 9
27. Independent Contractor ...... ............... ............ ......................... ................. .................. ............. .......................1 0
28. Amendments; Variations...... ..... ...................................... .................. .................. .............. .................. ..........1 0
29. Purchase and Invoice Deadlines..... ..................... ........................ ................... ......... ... .................. ............ ..... 10
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Monitoring.. .............................................. ............... ................... ........ ........ ............... .....................1 0
32. Monthly Progress Reports ................. ............ .......... .............. .................. .............. ................ ............ ........... .11
33. Use of Funds ..................... ....... .......................................... ............... .................... ......... .... .... ............... ......... II
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ............................ .......... ......... ................... .................... ...................... .............. .............. .................... 12
36. Counterparts .. .............................. ......................... .................. ....................... ........... .............. .......................13
37. Status of the Subrecipient ................... ...... ....................... ................. ..... .............. ............... ........... ...... .......... I 3
38. Legal Proceedings. ..................... .... ................. ........................... ...................... .......................... ............. ...... 13
39. Exhibits......................................... ........................... ..... .......... ....... .............. ............. ............ .........................13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project ActivitylDescription
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule ofPaymentslRequest for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 151 day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and St. Bernardine Medical
Center Foundation, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. ScoDe of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July I, 2006, and shall be completed
no later than June 30, 2007.
3. ComDensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Ten Thousand Dollars ($10,000.00) which the Mayor and Common Council
approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall constitute
full and complete compensation for performance by the Subrecipient of the Services under
this Agreement. Method of payment shall be in the form of a Request for Reimbursement in
accordance with the terms and conditions set forth on Exhibit "6" to this Agreement, a copy
of which is attached hereto and incorporated herein by this reference. All Requests for
I
Reimbursement shall be submitted on a monthly basis in accordance with HUD regulations
"Audit Ready." The Redevelopment Agency of the City of San Bernardino (the "Agency")
on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total allocation
beginning the month of July 2006. Verifiable supporting documentation of expenditures for
services rendered, plus proof of payment all acceptable to the City in the sole discretion of
the City shall be submitted prior to any payment by the City to the Subrecipient. Supporting
statements shall give the total of said monthly expenses and shall also itemize the same in
detail conforming to the Budget Summary set forth on Exhibit "2". After timely receipt of
each supporting statement, the City will draw a warrant within thirty (30) days in favor of the
Subrecipient for the total amount of the Request for Reimbursement approved by the City.
The City will reject and return reimbursement requests not properly and/or completely
submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator ofthe CDBG Program, or his/her Designee.
9. Non-Exoendable Prooertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Exoendable Personal Prooertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
II. Purchase or Lease ofNon-Exoendable Prooertv or EQuioment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (I) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure ReQuirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (IS) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
IS. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
20 I North "E" Street, Suite 30 I
San Bernardino, California 92401
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To the Subrecipient:
Drew Gagner
St. Bernardine Medical Center Foundation
2101 North Waterman Avenue
San Bernardino, CA 92404
16. Assignment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or his/her designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
5
the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
6
order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of $1 ,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
7
single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
I. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgrantees/subcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgrantees/subcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Independent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acquisition of Supplies and Equipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shaH maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HOD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HOD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HOD, may
be relevant to a question of compliance with contractual conditions and HOD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
his/her designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reports
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HOD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
persons/households assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit" I "
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious Proselytizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
11
a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (1) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds ofthis Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
12
36. Countemarts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status ofthe Subrecipient
This Agreement shall not become effective until such time as the Director or hislher
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes ofthis paragraph.
39. Exhibits
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or his/her designee has reviewed and approved the form and
content of each exhibit.
1111
1111
1111
1111
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
ATTEST:
By: ~h.~
Rach Clark, City Clerk
Approved as to Form:
By: ~r)~~Ja;~
James F. P an, City Attorney
SUBRECIPIENT
St. Bernardine edical Center Foundation
14
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
YWCA OF SAN BERNARDINO
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TABLE OF CONTENTS
OPERATIVE PROVISiONS.........................................................................................................................................1
1. Scope of Services ............................................................................................................................................1
2. Time of Perfonnance .......................................................................................................................................1
3. Compensation and Method of Payment............................................................................................... ............1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affirmative Action .............................................. .............................................................. ..............................2
6. Discrimination.................................................................................................................................................2
7. Accounting ................................................................................ ........ ..............................................................2
8. Budget Section ................................................................................................................................................3
9. Non-Expendable Property .......................................................................................................................... .....3
10. Expendable Personal Property .........................................................................................................................3
11. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Fuoding ................... ................................................................................................................................4
15. Notices.......................... ................................................................. ..................................................................4
16. Assignment......................................................................................................................................................5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ..............................................................................................................................................6
19. Reversion of Assets .......... ......................................................................... ......................................................6
20. Fiscal Limitations .................................................. .......................................................................................... 6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Iudemnification, and Hold Hannless.................................................................................................7
23. Insurance Requirements ..................... ............................... ................ .................. ............................................ 7
24. Conflict ofInterest........................................................................................................................................... 9
25. Budget Modifications ......................................................................................................................................9
26. Time ofPerfonnance Modifications...................................... ....... ............. ...................................................... 9
27. Independent Contractor .................................................................................................................................10
28. Amendments; Variations .................. ......................... ..................................... ...............................................1 0
29. Purchase and Invoice Deadlines ....................................................................................................................10
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Monitoring ....... ........................................................................... ....................................................1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds ..................................................................................................................................................11
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ............................................................................................................................................................12
36. Counterparts ..................................................................................................................................................13
37. Statos of the Subrecipient..............................................................................................................................13
38. Legal Proceedings .........................................................................................................................................13
39. Exhibits................................ ........................................................................ ..................................................13
EXHffiIT 1
EXHffiIT 2
EXHffiIT 3
EXHffiIT 4
EXHffiIT 5
EXHffiIT 6
EXHffiIT 7
EXHffiIT 8
EXHffiIT 9
Project Activity/Description
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule ofPaymentslRequest for Reimbursement Only
Insurance Inventory
Income Qualificatiou Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and YWCA of San
Bernardino, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit oflow- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "1" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Ten Thousand Dollars ($10,000.00) which the Mayor and Common Council
approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall constitute
full and complete compensation for performance by the Subrecipient of the Services under
this Agreement. Method of payment shall be in the form of a Request for Reimbursement in
accordance with the terms and conditions set forth on Exhibit "6" to this Agreement, a copy
of which is attached hereto and incorporated herein by this reference. All Requests for
1
Reimbursement shall be submitted on a monthly basis in accordance with HUD regulations
"Audit Ready." The Redevelopment Agency of the City of San Bernardino (the "Agency")
on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total allocation
beginning the month of July 2006. Verifiable supporting documentation of expenditures for
services rendered, plus proof of payment all acceptable to the City in the sole discretion of
the City shall be submitted prior to any payment by the City to the Subrecipient. Supporting
statements shall give the total of said monthly expenses and shall also itemize the same in
detail conforming to the Budget Summary set forth on Exhibit "2". After timely receipt of
each supporting statement, the City will draw a warrant within thirty (30) days in favor of the
Subrecipient for the total amount of the Request for Reimbursement approved by the City.
The City will reject and return reimbursement requests not properly and/or completely
submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record ofthe positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budllet Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shalI
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or his/her Designee.
9. Non-Expendable PropertY
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shalI be provided to the City
as welI as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (1) year and an acquisition cost of Three Hundred DolIars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or his/her designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal Property
Expendable personal property refers to alI tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred DolIars ($300.00) or more
per unit without the prior written approval of the Director or his/her designee.
11. Purchase or Lease of Non-Expendable Propertv or Eauipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred DolIars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. AII equipment that has a purchase
or lease price of over Fifty DolIars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and alIowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Chanlles in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (15) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all ofits books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
15. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
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1----
To the Subrecipient:
Interim Executive Director, Sylvia Cagle
YWCA of San Bernardino
567 North Sierra Way
San Bernardino, CA 92410
16. Assitrnlllent
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or his/her designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
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the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.5oo(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
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order to take account of actions affecting ffiJD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where ffiJD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
ffiJD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indenmification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of$I,OOO,Ooo limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating of B+ VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgrantees/subcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgrantees/subcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. IndeDendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition of SUDDlies and EauiDment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
10
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "s" and incorporated herein by this reference, for each client served. The Director or
his/her designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Revorts
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
persons/households assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "I"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Reli~ious Proselytizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agrc;lement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counterparts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecioient
This Agreement shall not become effective until such time as the Director or his/her
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this paragraph.
39. Exhibits
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or his/her designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
ATTEST:
By: ~ J.:1~
Rachel C ark, City Clerk
Approved as to Form:
By: j))U iiuYh.fJw)
James F. P:t:l:m, City Attorney
SUBRECIPIENT
YWCA of San Bernardino
B~rJ,di;,.'i-9t+;, .~
For YWCA of San Bernar ino
14
ESG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
"'~
.:o"~~~,
FOOTHILL AIDS PROJECT (FAP)
AGREEMENT FOR USE OF EMERGENCY SHELTER GRANT FUNDS
THIS AGREEMENT, entered in this 1st day of July, 2006 by and between the CITY OF SAN
BERNARDINO, (hereinafter referred to as the "CITY") and Foothill AIDS Project (pAP), a
California non-profit corporation, (hereinafter referred to as the "SUB RECIPIENT");
WITNESSETH
WHEREAS, pursuant to Subtitle "B" of the Stewart B. McKinney Homeless Assistance Act
of 1987 (public Law 100-77), (hereinafter referred to as the "Act"), the CITY has been awarded
Emergency Shelter Grant Program ("ESGP") funds which are to be used to improve the quality of
existing emergency shelters for the homeless, to help make available additional emergency shelters,
and to help meet the costs of operating emergency shelters and of providing certain essential social
services to homeless individuals, and;
WHEREAS, the CITY desires to contract with non-profit corporations for the use of ESGP
funds to provide various services for homeless individuals, and;
WHEREAS, the SUBRECIPIENT as a non-profit corporation, is eligible under the Act to
receive ESGP funds to provide those services as described herein.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
1. Term.
The term of this Agreement shall be for a period commencing on July I, 2006, and
terminating on June 30, 2007, or as otherwise provided for in Section 5 herein.
2. Scope of Services.
The SUBRECIPIENT promises and agrees to provide certain emergency shelter grant
program services for homeless persons by utilizing the sum of Nine Thousand Dollars
($9,000.00) in ESGP funds, as set forth in the manner provided in Exhibit "A" which is
attached hereto, and by this reference, incorporated herein. The SUBRECIPIENT shall also
provide homeless individuals with assistance in obtaining (i) appropriate supportive services,
including permanent housing, physical and mental health treatment, counseling, supervision,
and other services essential for achieving independent living, and; (ii) other federal, state,
local and private assistance provided hereunder shall be in full conformity with the Act, and
any amendments thereto, and the federal regulations and guidelines now, or hereinafter
enacted pursuant to the Act.
3. Matchinl!: Funds.
The SUBRECIPIENT must supplement its emergency shelter grant amounts with an equal
amount of funds from sources other than those provided herein and from non-federal sources.
These funds must be provided after the date of the grant award to the SUBRECIPIENT. The
SUBRECIPIENT may comply with this requirement by providing the supplemental funds
itself, or voluntary efforts or gifts in kind provided to the SUBRECIPIENT, as appropriate.
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4. Calculatinl! the Matchinl! Amount.
In calculating the amount of supplemental funds, there may be included the value of any
donated material or building(s), the value of the lease(s) on the building(s); any salary paid to
staff of the SUBRECIPIENT, or to any State or non-profit recipient, as appropriate, in
carrying out the Emergency Shelter Grant Program; and the time and services contributed by
volunteers to carry out the ESGP, determined at the rate of $5.00 per hour. For purposes of
this Section 4, the SUBRECIPIENT upon concurrence of the Executive Director (the
"Administrator") of the Redevelopment Agency of the City of San Bernardino ("Agency"),
the Administrator of the ESG Program, will determine the value of any donated material or
building(s) or any lease(s), or furnishings and equipment using any method reasonably
calculated to establish a fair market value.
5. Ternrlnation.
(a) Either party may terminate this Agreement upon thirty (30) days prior written notice to
the other party.
(b) Notwithstanding the provisions of Section 5(a), the CITY may suspend or terminate
this Agreement forthwith for cause, upon written notice to the SUBRECIPIENT of the
action being taken. Cause shall be established, (i) in the event the SUBRECIPIENT
fails to perform the covenants herein contained; (ii) in the event there is a conflict with
any federal, state or local law, ordinance, regulation or rule rendering any of the
provisions of this Agreement invalid or untenable, or; (iii) in the event the funding
from the United States Department of Housing and Urban Development (HUD),
referred to in the recitals herein, is reduced, terminated or otherwise becomes
unavailable. The CITY shall provide written notice to the SUBRECIPIENT within ten
(10) working days from the date HUn reduces, suspends or terminates the ESGP
funding. This Agreement may, at the discretion of the Administrator of the CITY, be
either terminated or amended to reflect said reduction of funds.
(c) Upon termination of this Agreement, the SUBRECIPIENT agrees to return any
unencumbered funds which it has been provided by the CITY. In accepting said
funds, the CITY does not waive any claim or cause of action it may have against the
SUBRECIPIENT for breach of this Agreement.
(d) Upon termination of this Agreement, the SUBRECIPIENT shall not incur any
obligations after the effective date of such termination.
(e) Any provisions for inspection and audits relative to the expenditure of funds provided
for hereunder shall not be ended upon the date of any termination but shall continue
thereafter as specified herein.
(t) SUBRECIPIENT will be required to cooperate and work in collaboration with City
departments, to include but not limited to: Police Department, Fire Department and
Code Compliance and the Agency in an effort to promote the well-being of citizens
and aid in reduction of crime, blight and unsafe living conditions. From time to time,
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1':IfCl'lllt\Hollsiaa;f'<1nns\mGl'<<ms\2OO6-2007l2OO6-2OO11!SG4-IMcIrp_
SUBRECIPIENT may be required to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 5. Termination. of this Agreement.
6. Pavment of Funds.
The Mayor and Common Council of the CITY shall determine the final disposition and
distribution of all funds received by the CITY under the Act. On behalf of the CITY, the
Agency shall make payments of ESGP funds to the SUBRECIPIENT for the purposes set
forth in Exhibit "A" and shall monitor the expenditure of funds and activities of the
SUBRECIPIENT to ensure compliance with applicable federal regulations and the terms of
this Agreement. The SUBRECIPIENT shall establish and maintain a separate account for all
ESGP funds received under this Agreement and deposit all such funds in said account.
All disbursements ofESGP funds by the Agency will be made in the following manner:
(a) Payments shall be made on a reimbursement basis and made within thirty (30) days
after the SUBRECIPIENT has submitted written notice identifying payments made
and requesting reimbursement. Payments shall be based on documented expenses by
the SUBRECIPIENT, for the purposes set forth in Exhibit "B" approved by the
Administrator, or his/her designee. The Agency shall reimburse on a monthly basis,
l/12 of the SUBRECIPIENT's ESGP funds.
(b) In no event shall the CITY or the Agency, or any of its officers, agents or employees,
be held liable for expenses incurred by the SUBRECIPIENT in excess of the ESGP
allocation noted in Section 2, entitled "Scope of Services."
(c) Payments may be withheld if, on a determination by the Administrator, the
SUBRECIPIENT has not complied with the covenants herein contained at such times,
and in such manner as provided in this Agreement.
(d) No later than thirty (30) days prior to the date set forth herein for termination of this
Agreement, the SUBRECIPIENT shall provide the CITY or Agency with its estimate
of the amount of funds which will remain unexpended upon such termination.
Notwithstanding any provisions contained in this Section 6, the Agency, through its
Administrator, shall thereafter, upon reasonable notice provide to the SUBRECIPIENT, have
the right to (i) reduce the payment of funds hereunder, (ii) renegotiate the actual levels of
expenditures in the event the SUBRECIPIENT's rate of expenditures will result in
unexpended funds at the expiration of this Agreement, and/or; (iii) re-program funds
associated with this Agreement in which the Administrator finds there has been no substantial
progress or activity.
1"'J'onu~sinIFomu\ESGP<<m~2007\2OlJ6.2OO7ESG""'-"'IMcrae.ob:
3
7. Documentation. Renorts. Insnections and Performance Evaluations.
(a) Documentation of Expenditures. All expenditures supported by properly executed
payrolls, time records, invoices, contracts, vouchers, receipts, orders and any other
accounting documentation pertaining, in whole or in part, to this Agreement, shall be
clearly identified and readily accessible. The SUBRECIPIENT shall maintain and
keep available all such documents for a period of not less than three (3) years from the
termination of this Agreement, if a CITY, Agency, state and/or federal audit has
occurred within six (6) months prior to date of termination, and for a period of not less
than five (5) years from said date if such audit has not occurred. In the event of audit
exception, such documentation shall be maintained until every exception has been
cleared to the satisfaction of the auditing authority.
(b) Reoorts. The SUBRECIPIENT, at such times and on such forms as the Agency may
require, shall furnish the Agency such statements, records, reports, data and
information as the Agency may request pertaining to its performance of services
hereunder and other matters covered by this Agreement. The SUBRECIPIENT shall
establish and maintain records in accordance with the Office of Management and
Budget (OMB) Circulars Numbered A-liD and A-1I2, respectively, as applicable to
the acceptance and use of emergency shelter grants.
(c) Inspections. The SUBRECIPIENT shall make available to the CITY and/or Agency,
state and/or federal officials its records and data with respect to all matters covered by
this Agreement for inspection and audit, which inspection and audit may be made at
any time after reasonable notice. The SUBRECIPIENT shall comply with the audit
requirements ofOMB Circular Number A-lID, as applicable, and as they relate to the
acceptance and use of federal funds under this Agreement.
(d) Performance Evaluations. The SUBRECIPIENT shall permit CITY and/or Agency,
state and/or federal officials to monitor, assess or evaluate the SUBRECIPIENT's
performance under this Agreement on at least a monthly basis, said monitoring,
assessment or evaluation to include, but not be limited to, audits, inventory,
inspections within the program area, and interviews with the SUBRECIPIENT's
employees, agents, independent contractors and subcontractors, providing the services
under this Agreement and recipients thereof.
(e) This Agreement contemplates that the SUBRECIPIENT will pay salaries, utilities and
furnishings with the monies provided in accordance with Exhibit "B" and Section 2
Scope of Services, of this Agreement.
8. Buildinl! or Facilitv.
(a) Any building for which emergency shelter grant amounts are used for renovation,
conversion, or major rehabilitation, must meet local safety and sanitation standards.
(b) When ESOP funds are utilized to provide emergency shelter for the homeless in hotels
or motels or other commercial facilities providing transient housing, (i) the
SUBRECIPIENT, at the request of the CITY and/or Agency, shall execute an
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P:\I'(lnus\Houiul l'onas\ESG flIlnlu\.2006-2007\2Q06..2007 ESG.....OCIIIall Mqe.lb:
Agreement with the provider of such housing which provides that comparable living
space, in terms of quality, available in the facility for use as emergency shelters for at
least the same period of time as provided in Section 9 herein, and; (ii) leases
negotiated between the SUBRECIPIENT and the provider of such housing shall make
available such living space at substantially less than the daily room rate otherwise
charged by the facility and; (iii) the SUBRECIPIENT shall certify, in writing, to CITY
and/or Agency that it has considered using other facilities as emergency shelter for the
homeless in the City.
(c) The SUBRECIPIENT shall ensure that any building or facility is utilized exclusively
for secular purposes and is made available to all person regardless of religion. If
ESGP funds are used to renovate, rehabilitate, or convert buildings owned by
primarily religious organization or entities, the SUBRECIPIENT shall comply with
the provisions of Title 24, Code of Federal Regulations, Part 575.21(b)(2).
(d) The SUBRECIPIENT shall comply with the Uniform Federal Accessibility Standards
(24 CFR, Part 40, Appendix "A"), when activities funded by the ESGP involve major
rehabilitation or conversion.
9. Maintenance as a Homeless Facilitv.
(a) The SUBRECIPIENT shall maintain any building for which ESGP funds are used for
not less than a three (3) year period, or for not less than a ten (10) year period if the
grant amounts are used for major rehabilitation or conversion of the building.
(b) The three (3) or ten (10) year periods begin to run, (i) on the date of initial occupancy
as an emergency shelter for the homeless when the building utilized was not operated
as an emergency shelter for the homeless before receiving ESGP funds, or; (ii) on the
date that ESGP funds are first obligated to the shelter when the building was operated
as an emergency shelter before receiving ESGP funds, or; (ii) on the date that ESGP
funds are first obligated to shelter when the building was operated as an emergency
shelter before receiving ESGP funds.
(c) When ESGP funds are used exclusively to provide essential services including, but not
limited to, services concerned with employment, physical or mental health, substance
abuse, education, food, equipment or furnishings, the time periods noted in (a) above
are not applicable.
10. Independent Capacity.
The SUBRECIPIENT, and its officers, employees and agents, shall act in an independent
capacity during the term of this Agreement and shall not act as, shall not be, nor shall they in
any manner be construed to be officers, employees, or agents of the CITY and/or the Agency
or the State ofCalifomia.
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11. Assil!Dabilitv.
The SUBRECIPIENT cannot assign any of its rights, duties or obligations pursuant to this
Agreement to any person or entity without the prior written consent of the CITY or the
Agency. This includes the ability to subcontract all, or a portion of, its rights, duties and
obligations hereunder.
12. Insurance.
The SUBRECIPIENT shall during the term of this Agreement:
(a) Procure and maintain Workers' Compensation Insurance as prescribed by the laws of
the State of California.
(b) Procure and maintain comprehensive general and automobile liability insurance as
shall protect the SUBRECIPIENT from claims for damages for personal injury,
including accidental and wrongful death, as well as from claims for property damage,
which may arise from activities or programs under this Agreement, whether such
activities or programs by the SUBRECIPIENT, by any subcontractor or by any
officer, employee or agent of either of them.
Such insurance shall name the CITY and the Agency, their officers, officials,
attorneys, agents, employees, volunteers and independent contractors as additional
insureds with respect to this Agreement and the obligations of the SUBRECIPIENT
hereunder. Such insurance shall provide for combined coverage limits of not less than
$1,000,000 per occurrence.
(c) Furnish the CITY and the Agency with policies of insurance, prior to request for first
reimbursement for ESGP funds showing that such insurance is in full force and effect,
and that the CITY and the Agency are named as additional insureds with respect to
this Agreement and the obligations of the SUBRECIPIENT hereunder. Further, said
policies shall contain the covenant of the insurance carrier that thirty (30) days written
notice will be given to the CITY and the Agency prior to modification, cancellation, or
reduction in coverage of such insurance.
13. Hold Harmless.
The SUBRECIPIENT shall indemnify and hold the CITY and the Agency, their officers,
officials, attorneys, agents, employees, volunteers and independent contractors free and
harmless from any liability whatsoever, including wrongful death, based or asserted upon any
act or omission of the SUBRECIPIENT, its officers, agents, employees and independent
contractors in any legal action based upon such alleged acts or omissions. The specific
insurance coverage required in Section 12 shall in no way limit or circumscribe the
SUBRECIPIENT'S obligation to indemnify and hold the CITY and the Agency harmless as
set forth in this Section 13.
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14. Federal Reauirement.
(a) The SUBRECIPIENT shall comply with the provlSlons of the Act, and any
amendments thereto, and the federal regulations and guidelines now or hereinafter
enacted pursuant to the Act. More particularly, the SUBRECIPIENT is to comply
with those regulations found in Part 575 of Title 24 of the Code of Federal Regulations
and OMB Circulars Numbered A-II0 and A-1I2, respectively, and appropriate
attachments for non-profit organization contractors.
(b) The SUBRECIPIENT represents that it is, or may be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by, or in connection with, a religious or denominational
institution or organization.
(c) The SUBRECIPIENT agrees that, in connection with the services to be provided
hereunder, (i) it will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or give preference
in employment to persons on the basis of religion; (ii) it will not discriminate against
any person applying for such services on the basis of religion and will not limit such
services or give preference to persons on the basis of religion; (iii) it will provide no
religious instruction or counseling, conduct no religious workshop or services, engage
in no religious proselytizing and exert no other religious influence in the provision of
such services; (iv) the portion of a facility used to provide services assisted, in whole
or in part, under this Agreement shall contain no sectarian or religious symbols or
decorations, and; (v) the funds received under this Agreement shall not be used to
construct, rehabilitate, or restore any facility which is owned by the SUBRECIPIENT
in which the services are to be provided; provided that, minor repairs may be made if
such repairs are directly related to the services; are located in a structure used
exclusively for non-religious purposes, and; constitute in dollar terms only a minor
portion of the ESGP expenditure for the public services.
(d) The SUBRECIPIENT shall comply with the Housing and Community Development
Act (HCD Act) of 1992 (public Law 102-550, approved October 28, 1992), which
requires the involvement of, to the extent practicable, homeless individuals and
families and operating facilities assisted under the ESGP in providing services for
occupants of these facilities (42 D.S.C. 11375(c)(7), as added by Section 1402 (b)).
(e) The SUBRECIPIENT shall comply with HCD Act, Section 1402 (d), which requires
that termination of assistance to any individual or family be in accordance with a
formal process, which may include a hearing, established by the SUBRECIPIENT.
15. Compliance with Law.
The SUBRECIPIENT shall comply with all federal, state and local laws and regulations
pertinent to its operation and services to be performed hereunder, and shall keep in effect any
and all licenses, permits, notices and certificates as are required thereby. The
SUBRECIPIENT shall further comply with all laws applicable to wages and hours of
employment, occupational safety and to fire safety, health and sanitation.
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16. Comprehensive Homeless Assistance Plan.
The SUBRECIPIENT shall cooperate with the CITY and the Agency in undertaking
emergency shelter grant activities and shall assist the CITY and the Agency in carrying out
the Comprehensive Homeless Assistance Plan and any other applicable strategies
implemented by the CITY and the Agency and shall act in conformity therewith.
17. Non-Discrimination and Equal Opportunity Compliance.
The SUBRECIPIENT hereby certifies compliance with the following:
(a) Executive Order Number 11246, as amended, and the regulations issued thereunder at
Title 41, Code of Federal Regulations, Chapter 60;
(b) Title VI and Title VII of the Civil Rights Act of 1964 (423 V.S.C. Section 2000(d) et.
seq.), as amended by the Equal Opportunity Act of March 24, 1972, (Public Law
Number 92-261);
(c) Title vm of the Civil Rights Act of 1968 (42 V.S.C. Sections 3601-3619) and
implementing regulations issued pursuant thereto (24 CFR, Part I);
(d) Executive Order Number 11063 and implementing regulations issued pursuant thereto
(25 CFR, Part 107);
(e) Age Discrimination Act of 1975 (42 V.S.C., Sections 6101-6107);
(1) Section 504 of the Rehabilitation Act of 1973 (29 V.S.C., Section 794), and;
(g) Executive Orders Numbered 11625, 12432 and 12138 consistent with BUD's
responsibilities under these Orders, the SUBRECIPIENT must make efforts to
encourage the use of minority and women owned business enterprises in connection
with ESGP activities;
(h) The SUBRECIPIENT shall establish and maintain a procedure through which
homeless individuals will be informed of the facilities and services available to all on
a nondiscriminatory basis.
(i) SUBRECIPIENT agrees to abide by, and include in any subcontracts to perform work
under this Agreement, the following clause:
"During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors shall not unlawfully discriminate against any employee or application
for employment because of race, religion, color, national origin, ancestry, physical
handicap, medical condition, marital status, age (over 40), or sex. The
SUBRECIPIENT and subcontractors shall ensure that the evaluation and treatment of
their employees and applications for employment are free of such discrimination.
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The SUBRECIPIENT and subcontractors shall comply with the provisions of the Fair
Employment and Housing Act (Government Code, Section 12900 et. seq.). The
applicable regulations of the Fair Employment and Housing Commission
implementing Government Code Section 12990, set forth in Chapter five (5) of
Division four (4) of Title two (2) of the California Administrative Code are
incorporated into this Agreement by reference and made a part hereof as if fully set
forth at length.
The SUBRECIPIENT and its subcontractors shall give written notice of their
obligations under this clause to labor organizations with which they have collective
bargaining or other agreement."
(j) The equal opportunity clause continued in Section 202 of Executive Order Number
11246, as amended, is hereby incorporated into this Agreement by this reference.
(k) During the performance of this Agreement, the SUBRECIPIENT and its
subcontractors, if any, shall not deny the benefits rendered hereunder to any person on
the basis of religion, color, ethnic group identification, sex, age or physical or mental
disability.
(I) The SUBRECIPIENT shall furnish all information and reports as required by
Executive Order Number 11246, as amended.
(m) The SUBRECIPIENT shall include the non-discrimination and compliance provisions
of the equal opportunity clause in all subcontracts, if any.
18. Affirmative Action ComDliance.
Each SUBRECIPIENT or subcontractor with less than fifty (50) employees shall comply with
Section 202, Part II, of Executive Order Number 11246, as amended. The SUBRECIPIENT
shall ensure that subcontractors, if any, falling within the scope of this provision shall comply
in full with the requirements thereof
19. Conflict of Interest.
No person who is (i) an employee, agent, consultant, officer, or elected or appointed official
of the CITY, the Agency, state or the SUBRECIPIENT that receives ESGP funds and who
exercises or has exercised any functions or responsibilities with respect to assisted activities,
or; (ii) in a position to participate in a decision making process or gain inside information with
regard to such activities, may obtain a personal or financial interest or benefit from the
activity, or have an interest in any contract, subcontract or agreement with respect thereto, or
the proceeds thereunder, either for himself or herself or those with whom he or she has family
or business ties, during his or her tenure or for one (I) year thereafter.
20. EIil!ibiIitv of Contractors and Subcontractors.
No ESGP funds allocated to the SUBRECIPIENT through this Agreement may be used,
directly or indirectly, to employ, award contracts to, or otherwise engage the services of, or
9
P:\FonnI\HolqiQI FOI'lIlI~ J'<<ma\2oo6.2007\2~2007 ESG "--cal Merp""
purchase the goods of, or fund any contractor or subcontractor during any period of
debarment, suspension, or placement in ineligibility status under the provision of 24 CFR,
Part 4.
21. Lead Based Paint.
The SUBRECIPIENT and all subcontractors, if any, shall comply with the requirements, as
applicable, of the Lead-Based Paint Poisoning Prevention Act (42 V.S.C., Section 4821-4846)
and implementing regulations issued pursuant thereto (24 CFR, Part 35).
22. Flood Insurance.
No site proposed on which renovation, major rehabilitation, or conversion of a building, is to
be assisted under this part, other than by grant amounts allocated to the state, may be located
in an area that has been identified by the Federal Emergency Management Agency as having
special flood hazards, unless the community in which the areas is situated is participating in
the National Flood Insurance Program and the regulations issued thereunder (44 CFR, Parts
59-79) or less than a year has passed since the Federal Emergency Management Agency
notification regarding such hazards, and the SUBRECIPIENT will ensure that flood insurance
on the structure is obtained in compliance with Section 102(a) of the Flood Disaster
Protection Act of1973, (42 V.S.C., Section 4001 et. seq.).
23. Notice.
Any notices required or desired to be served by either party upon the other shall be addressed
to respective parties as set forth below (or to such other addresses as from time to time may be
designated, in writing, by the respective parties):
AS TO AGENCY:
AS TO SUBRECIPIENT:
Maggie Pacheco, Executive Director
Economic Development Agency
201 North "E" Street, Suite 301
San Bernardino CA 92401-1507
Marie Francois, Executive Director
Foothill AIDS Project (pAP)
362 Orange Show Lane
San Bernardino, CA 92408
24. Bindinl! Successors.
The SUBRECIPIENT, its heirs, assigns and successors in interest shall be bound by all the
provisions contained in this Agreement, and all of the parties thereto shall be jointly and
severally liable hereunder.
25. Assurances.
The SUBRECIPIENT certifies that it has the legal authority to enter into and meet the
requirements of this Agreement.
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26. Leeal Proceedines.
Should any legal proceedings be conunenced to enforce, enjoin, or collect funds or otherwise
affect this Agreement between the parties it should be filed in San Bernardino County
Superior Court. The prevailing party shall be entitled to recover its reasonable legal fees.
The costs, salary and expenses of the City Attorney and members of his office in enforcing
this Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes of this section.
27. Entire Aereement.
This Agreement is intended by the parties hereto as the final and exclusive expression of these
provisions contained in this Agreement and it supersedes and replaces any and all prior and
contemporaneous agreements and understandings, oral or written, in connection therewith.
This Agreement may be modified or changed only upon the written consent of the parties
hereto.
28. 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.
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IN WITNESS WHEREOF, the parties hereto have hereunto their hands and seals this day and
year first above written.
CITY OF SAN BERNARDINO
FootbiIl AIDS Projoct (F AP)
a California non-profit corporation
1l
c:::.-'
- Ex tive ~irector
~ "'r-Q:~
trick J Morris, Mayo
ATTEST
City of San Bernardino
~~. J.J. ~_
Rache Clark, City Clerk
Approved as to Form:
es F. Penman, City Attorney
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P:'d'umt.Houlnt FomasG PorllII\2006-2007\2006-2007 ESG Awtaacul Mcrp.doe
I
CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
LEGAL AID SOCIETY OF SAN BERNARDINO
TABLE OF CONTENTS
OPERATIVE PROViSiONS.........................................................................................................................................1
I. Scope of Services......... ..... ......... .......................... ......... ............................. ................ ................................ .....1
2. Time of Performance..... ............. ................... ...... ......... ............................. ............. .......................... ......... ......I
3. Compens.tion and Method of P.yment...........................................................................................................1
4. Compliance with L.ws .nd Assurances ..........................................................................................................2
5. Affirmative Action ................................ .......... .......... ..................... .................... ...... ....... ........... ............. ........2
6. Discrimination ........................................ ........ .......... ................... ..................... ............... ........................... .....2
7. Accounting ......................................................... ...... ........... ........................... .............. .............................. .....2
8. Budget Section .......................... .......................... ................................ .......... ............. ................... .............. ....3
9. Non-Expendable Property .............. ...................... ....................................... ........... ............ ............. ................ 3
10. Expendable Personal Property ............................... ....... .............................. ......... ............................ ................3
II. Purchase or Le.se of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Alloc.tion ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Funding ............................. .......... ........... .......................... ........ ............... ................ ....................... .........4
15. Notices.................................... ...................... .................................................. ......... ........................................4
16. Assignment ............................ ............................... ..................... .................. .......... ........................... ............... 5
17. Tennination and Tennin.tion Costs ................................................................................................................5
18. Program Income .......... ..................................................... ....................... ............ ....................... ..................... 6
19. Reversion of Assets...... ..... .......... ..................................................... ................. ................ ........ ...................... 6
20. Fisc.1 Limitations...... ....... ..................... .............................. ......... ................................... ................................6
21. Use of Funds for Entertainment, Me.ls or Gifts.............................................................................................. 7
22. Release, Indemnific.tion, and Hold Hann1ess................................................................................................. 7
23. Insurance Requirements ....................................... ......................................... ......... .......................... ....... ........7
24. Conflict of InteresL..................... .......................... ........ ........................... ............. ............. ........ ................ ..... 9
25. Budget Modific.tions..... ...................... ............................................ .................. .............. .......................... ..... 9
26. Time of Performance Modific.tions.......... ........ ........................... ...................... ............ .................................9
27. Independent Contractor ............ ........................... .......................................... ........ ..... ..................... .............. 10
28. Amendments; Vari.tions ............................... ....... ....... ............................... ........... ................. ................ .......1 0
29. Purchase and Invoice De.dlines ....................................................................................................................1 0
30. Acquisition of Supplies .nd Equipment ........................................................................................................1 0
31. Program Monitoring ......................................................................................................................................1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds............................................................................................... ...................................................11
34. Religious Proselytizing or Politic.1 Activities...............................................................................................11
35. Audits .. ............................ ............ ........ ............. ................................................. ....... .....................................12
36. Counterparts. ........ ............. ............................... ............................................. ........ ......................... ...............13
37. Status of the Subrecipient .......... .................... ...................................... ....... ......... ............... ........ .... ............... 13
38. Leg.l Proceedings .........................................................................................................................................13
39. Exhibits............................................................................................. .................. ............. .......................... ....13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project Activity/Description
Budget Summary
Budget Justific.tion - Part I (Service/Supplies)
M.intenance .nd Oper.tion Commitment
Schedule ofP.yments/Request for Reimbursement Only
Insurance Inventory
Income Qualific.tion Statement
Certific.tion
CDBG Compli.nce Report
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Legal Aid Society of
San Bernardino, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality oflife of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
I. Scope of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "I" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1, 2006, and shall be completed
no later than June 30, 2007.
3. Compensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Thirteen Thousand Dollars ($13,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement. Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference. All
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Requests for Reimbursement shall be submitted on a monthly basis in accordance with HUD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1112) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Summary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Comoliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. BudlZet Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shaU
be spent for the separate cost categories specified in Budget Summary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBG Program, or hislher Designee.
9. Non-Exoendable Prooertv
A record shaU be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBG funds. This record shaU be provided to the City
as weU as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (1) year and an acquisition cost of Three Hundred DoUars
($300.00) or more per unit. The Subrecipient shaU not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBG funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Exoendable Personal Prooertv
Expendable personal property refers to aU tangible personal property other than non-
expendable personal property. The Subrecipient shaU not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred DoUars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
11. Purchase or Lease ofNon-Exoendable Prooertv or Eauioment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred DoUars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. AU equipment that has a purchase
or lease price of over Fifty DoUars ($50.00) in unit value and life expectancy of more than
one (1) year shall be properly identified and inventoried and shaU be charged at its actual
price, deducting aU cash discounts, rebates and aUowances received by the Subrecipient.
This inventory shall be provided to the City as weU as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. ChanlZes in Grant AUocation
The City reserves the right to reduce the grant aUocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure wiU result in unspent funds at the end of
the program year. Changes in the grant aUocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Requirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (IS) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
IS. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
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To the Subrecipient:
Roberta Shouse
Legal Aid Society of San Bernardino
354 West Sixth Street
San Bernardino, CA 92401
16. Assignment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
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the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
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order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or his/her designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or his/her designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhis/her intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertaimnent. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertaimnent, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (ifrequested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notify
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of $1 ,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum of three, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
sub grantees/subcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acauisition ofSuoolies and Eauioment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
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accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reoorts
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit" I "
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious Proselvtizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title I of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. Ifindications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counteroarts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecioient
This Agreement shall not become effective until such time as the Director or his/her
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes ofthis paragraph.
39. Exhibits
IIII
IIII
IIII
IIII
IIII
IIII
IIII
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or his/her designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
SUBRECIPIENT
Legal Aid Society of San Bernardino
By
BY:{(~~
For Legal Aid Society of San Bernardin~
ATTEST:
By: ~.J 11 ~
Racn Clark, City Clerk
Approved as to Form:
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EXHIBIT 1
Economic Development Agency of the
City of San Bernardino
2006/2007 Community Development Block Grant
Subrecipient Agreement
Name/Address of Subrecipient Organization:
LEGAL AID SOCIETY OF SAN BERNARDINO
354 WEST SIXTH STREET. SAN BERNARDINO. CA 92401
Project Activity Title: LEGAL AID CLINIC
Date Issued: JULY 1, 2006
[gJ Original
o Amendment
Legal Aid provides free legal services to indigents on a variety of civil (non-criminal) legal matters, concentrating
primarily on family and housing law. During weekday hours, Legal Aid conducts open intake on Monday, Tuesday
and Thursday from 9:00 to 12:00, and Wednesday mornings by appointment. (Appointments are made for special
needs clients, such as the disabled, the elderly, and the working poor who work during our usual, open hours).
Residential and income eligibility are fITSt determined. The client then meets with an attorney for consultation
and advice, as needed, who assigns the client to meet with a client file data clerk who then secures the information
needed to start preparation of the client's required legal paperwork. Some paperwork is completed and returned to
the client while they wait. More complex matters are started while the client is present, and completed after the
client leaves.
Upon completion, the paperwork is given to the client with written and verbal instructions on procedures and an
instruction to return to Legal Aid for future service on each case.
Legal Aid helps clients with guardianships, parental-relationship actions, divorces, child custody and visitation,
child support (including actions to seek, modifY, collect or defend support orders), actions to restore drivers' or
professional licenses taken for failure to provide support, actions to secure domestic violence restraining orders,
conservatorships, and answers to unlawful detainers (evictions). With the assistance provided by Legal Aid, these
clients are able to represent themselves in court.
Legal Aid also holds night clinics on the fIrst Wednesday evening of the month where 10 to 15 volunteer
attorneys provide legal advice to clients on a variety of civil matters, including contract disputes, mortgage issues,
credit, social security benefIts, housing law, and advice on cases from the day clinic (such as divorces, child custody
and guardianships).
Legal Aid also performs a variety of community legal education events, visits senior centers, staffs the San
Bernardino County Court's facilitation centers and provides work experience to participants of the Welfare-to-
Work. Legal Aid also accepts volunteers who must perform community services, and accepts college student
interns and students under the State and Federal work study program.
However, Legal Aid uses this CDBG funding for the provision of the above-listed core legal aid to indigent
residents of the City.
With this funding and other funding, Legal Aid hopes to help 1672 residents from the City of San Bernardino.
EXHIBIT 2
Economic Development Agency of the
City of San Bernardino
2006/2007 Community Development Block Grant
Subrecipient Agreement
Budget Summary
Name of Sub recipient Organization:
LEGAL AID SOCIETY OF SAN BERNARDINO
Date Issued: 07-01-06
[8J Original 0 Amendment
ConsultanUContract Services
Consumable Su lies
E ui ment
Insurance Other:
Liabili Insurance
S ace Rent
Travel
Utilities
Workman Com ensation Insurance
Other:
1,332
400
250
12,000
6,100
1,800
13,332
6,500
2,050
450
103
182
2,850
3,850
2,600
178,700
3,300
3,953
2,782
191,700
Total Su lies/Service Costs
13,000
If costs are to be shared by other sources of funding, including CDBG funds from other
jurisdictions, identify the source of funding, grantorllending organization and amount.
Grantor/Lendin Or anization
Inland Counties Le al Services
State Bar of California
State Bar of California
Source of Fundin
Le al Servo Cor .
IOLTA
E ual Access
Amount
$ 97,750
58,890
35,060
EXHIBIT 3
Economic Development Agency of the
City of San Bernardino
2006/2007 Community Development Block Grant
Subrecipient Agreement
Budget Justification
Name of Subrecipient Organization:
LEGAL AID SOCIETY OF SAN BERNARDINO
Date Issued: 7-01-06
~ Original 0 Amendment
Case Worker II
12.00
14-15
12 months
$ 9,100
TOTAL
Personnel Benefits Detail
FICA 7.65 696
SUI 3.1 282
W/C 2.0 182
Health/Dental
Insurance 2.25 205
TOTAL 15.0 1,365
9,100
1,365
10,465
EXHIBIT 4
Economic Development Agency of the
City of San Bernardino
2006/2007 Community Development Block Grant
Subrecipient Agreement
Project:
LEGAL AID CLINIC
Name and Address of Prospective Maintenance and Operation Entity:
BOARD OF DIRECTORS OF LEGAL AID SOCIETY OF SAN BERNARDINO
The governing body of the above public, Quasi-Public, or Non-Profit entity has the
financial capacity and is willing to assume the maintenance and operation responsibility
and costs associated with the indicated CDBG project. This body has reviewed Part II
of this form and to the best of its ability has determined this budget to be a true and
accurate estimate of the annual Maintenance and Operation costs for the proposed
project. The maintenance and operation costs that will be considered are those
authorized under 24 CFR 570.201(e) and 24 CFR 570.206 (a)(4) while activities under
24 CFR 570.207(a)(2) classified as ineligible will not be allowed. Examples of eligible
cost are:
- Rental or Purchase of Equipment
- Insurance
- Utilities
- Office Supplies
- Rental and Maintenance of Office Space
- Staff Salary
It is understood that without a commitment for maintenance and operation, the indicated
project may not be considered for funding under the Community Development Block
Grant Program.
NOTE: Community Development Block Grant Funds may not be utilized for ongoing
maintenance and operation costs of capital improvementslfacilities.
/-\
~oU~^~~
Signature: RO RTA SHOU$E
EXECUTIVE DIRECTOR
Title
JULY?I.2006
Date
EXHIBIT 5
Economic Development Agency of the
City of San Bernardino
2006/2007 Community Development Block Grant
Subrecipient Agreement
PROJECT ACTIVITY TITLE:
LEGAL AID CLINIC
DATE ISSUED: Julv 1. 2006
. Original
o Amendment #
PROPOSED SCHEDULE OF PAYMENTS
(REQUEST FOR REIMBURSEMENT ONLY)
AUGUST 4. 2006
SEPTEMBER 5. 2006
OCTOBER 5. 2006
NOVEMBER 3. 2006
DECEMBER 5. 2006
JANUARY 5. 2007
FEBRUARY 5. 2007
MARCH 5. 2007
APRIL 5. 2007
MAY 4. 2007
JUNE 5. 2007
JULY 5. 2007
EXHIBIT 6
Economic Development Agency of the
City of San Bernardino
2006/2007 Community Development Block Grant
Subrecipient Agreement
Proiect Activitv Title:
LEGAL AID CLINIC
. Original
o Amendment #
INSURANCE INVENTORY
(See attached copy of Insurance Policy)
PRIMARY INSURANCE POLICY
Name of Insurance Company: THE HARTFORD INSURANCE COMPANY
Effective Dates of Policy: 8/11/05 - 8/11/06
(per occurrence policy)
Limits of Liability:
$ 1,000,000 - 3,000,000
Deductibles
Per Occurrence:
$250
EXCESS/UMBRELLA POLICY
Name of Insurance Company: THE HARTFORD INSURANCE COMPANY
Effective Dates: 8/11/05 - 8/11/06
Limits of Liability:
$ 1.000,000 - 3,000.000
Underlying Coverage Limits: $1,000,000 - 3,000,000
Name of Underlying Company: HARTFORD CASUAL TV INSURANCE COMPANY
Endorsements Attached: City of San Bernardino: City of San Bernardino And City of
San Bernardino Economic Development Department
(Name specific endorsements)
Additional Insured Endorsement Attached:
Certified Copy of Policy Attached:
Certificate of Insurance Attached:
.Yes
. Yes
DYes
o No
o No
. No
EXHIBIT 8
Economic Development Agency of the
City of San Bernardino
;.".-,
2006/2007 Community Development Block Grant
Subrecipient Agreement
CERTIFICATION
Please complete the following certifications:
1. The information contained in this document is complete and accurate;
2. The proposed program/project described in this application meets one of the
National Objectives governing the use of Community Development Block Grant
(CDBG) funds (See Step 2 H);
3. The Sub-Recipient shall comply with all Federal and City policies and
requirements affecting the CDBG Program;
4. If the project is a facility, the sponsor shall maintain and operate the facility for its
approved use throughout its economic life; and
5. Sufficient funds are available from non-CDBG sources to complete the
program/project, as described, if CDBG funds are zll~cated to the Sub-Recipient.
i
Sub-Recipient Representative
JUL~ 2006
Date
ROBERTA SHOUSE, Executive Director
Name and title of Authorized Sub-Recipient Representative
CDBG SUBRECIPIENT AGREEMENT
(Economic Development)
between
THE CITY OF SAN BERNARDINO
and
NATIONAL DEVELOPMENT COUNCIL
1500 Third Street, Suite D
Napa, California 94558
P:\Fonns\HOllSing Fonns\CDBG Forms\200S.2OQ6\Subm:ipieut Agrccmcnts\2006\2006-2007 CDBG (National Development Council)-Subrecipient Agjeemcnt.doc
TABLE OF CONTENTS
OPERATNE PROVISiONS.........................................................................................................................................1
I. Scope of Services ............................................................................................................................................1
2. Time of Performance .......................................................................................................................................1
3. Compensation and Method ofPayment...........................................................................................................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. Affmnative Action ..........................................................................................................................................2
6. Discrirnination.................................................................................................................................................2
7. Accounting ......................................................................................................................................................2
8. Changes in Grant Allocation ...........................................................................................................................2
9. Revenue Disclosure Requirement ...................................................................................................................3
10. Joint Funding ........................................................................................................................ ...........................3
II. Notices..................................................................................... ........................................................................3
12. Assignment......................................................................................................................................................4
13. Termination and Termination Costs .................. ..............................................................................................4
14. Program income ......................................................... .......................................................... ........................... 5
15. Reversion of Assets ....................................................... ..................... .............................................................5
16. Fiscal Limitations ............................................................................................................................................6
17. Use of Funds for Entertainment, Meals or Gifts..............................................................................................6
18. Release, indemnification, and Hold Hann1ess.................................................................................................6
19. Insurance Requirements .................................... ............. ............... ..................................................................7
20. Conflict ofInterest............................................................................................. .............................................. 8
21. Budget Modifications ............................................................ ................ ......................... ................................. 8
22. Time of Performance Modifications......................................................... ....................................................... 9
23. independent Contractor ....................................... .......................... ..................................................................9
24. Amendments; Variations ................. ......................... ......................... .............................................................. 9
25. Purchase and Invoice Deadlines......................................................................................................................9
26. Acquisition of Supplies and Equipment ........................................................................................................10
27. Program Monitoring .................................................................... ............ ......................................................1 0
28. Monthly Progress Reports .............................................................................................................................10
29. Use of Funds............................. ........... .............. .......... ...................... ............................................................11
30. Religious Proselytizing or Political Activities...............................................................................................11
31. Audits .............. ........... ............................ ..... ........................... ................ .................... ...................................12
32. Counterparts .............................................................................. ................. ..... ................. ............ ........... ......12
33. Status of the Subrecipient ............................................................. ................... ..............................................12
34. Legal Proceedings .........................................................................................................................................13
35. Attachment ........................................................... ...... ....................... ................. ...........................................13
P:\Fonns\Housiag Fonns\CDBG FOOI1I\2005-2OO6\Subrccipicnt Ap'ecmcots\2006\2006-2001 CDBG (Narioaal Developmetrt Cowtcil)-Subrec:ipient Agreemcnt..doc
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the
City of San Bernardino, a municipal corporation, hereinafter referred to as the "City"
and National Development Council, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of
America through its Department of Housing and Urban Development (HUD) to execute
the City's Community Development Block Grant (CDBG) Program under the Housing
and Community Development Act of 1974, as amended, hereinafter called the "Act;"
and
WHEREAS, the City and the Subrecipient have an interest in providing
necessary services to and enhancement of the quality oflife of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is
eligible under HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the
implementation of the program by reason of experience, preparation, organization,
staffing, and facilities to provide services for the benefit of low- and moderate-income
persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth
and the mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scope of Services
The Subrecipient shall perform all the services described in the Project
Description and Scope of Services set forth on Attachment 1 to this Agreement a
copy of which is attached hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1,2006, and shall be
completed no later than June 30, 2007.
3. Compensation and Method ofPavment
For performance of such services, the City shall pay the Subrecipient an amount
of money not to exceed Fifty Thousand Dollars ($50,000.00) which the Mayor
and Common Council approved as part of the Fiscal Year 2006/2007 CDBG
budget. Said payment shall constitute full and complete compensation for
performance by the Subrecipient of the Services under this Agreement. All
1
requests for reimbursement shall be submitted on quarterly basis in accordance
with HUD regulations "Audit Ready". The Redevelopment Agency of the City
of San Bernardino (the "Agency") on behalf of the City, will reimburse the
Subrecipient beginning the month of July 2006. After timely receipt of each
statement, the City will draw a warrant within thirty (30) days in favor of the
Subrecipient for the total amount of the request for reimbursement approved by
the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Comoliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will
continue to comply with the Act and all applicable federal, state, and local laws,
ordinances, regulations, policies, guidelines, and requirements as they relate to
acceptance and use of federal funds for this federally-assisted program. This
Agreement is subject to all such laws, ordinances, regulations, policies and
guidelines, including, without limitation, the Act; Title 24, Code of Federal
Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-
87, A-95, A-I 10, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded
wholly or in part by HUD CDBG funds shall provide equal employment and
career advancement opportunities for minorities and women. In addition, the
Subrecipient shall make every effort to employ residents of the area and shall
keep a record of the positions that have been created directly or as a result of this
program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national
origin, be excluded from participating in, be refused the benefits of, or otherwise
be subjected to discrimination in any activities, programs, or employment
supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate
accrual accounting system in accordance with generally accepted accounting
principles, practices, and standards.
8. Changes in Grant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal
monitoring indicates that the Subrecipient's rate of expenditure will result in
unspent funds at the end of the program year. Changes in the grant allocation
2
will be done after consultation with the Subrecipient. Such changes shall be
incorporated into this Agreement by written amendments.
9. Revenue Disclosure Reauirement
By its execution of this Agreement, the Subrecipient certifies that it has
previously filed with the Agency, a written statement listing all revenue
received, or expected to be received, by the Subrecipient from federal, state, city
and county, and from other governmental agencies, and applied or expected to
offset, in whole or in part, any of the costs incurred by the Subrecipient in
conducting current or prospective projects or business activities, including, but
not limited to, the project or business activity which is the subject of this
Agreement. Such statement shall reflect the name and a description of such
project, the dollar amount of funding provided, or to be provided, by each and
every governmental agency to each such project or business activity, and the full
name and address of each such governmental agency. During the term of this
Agreement, the Subrecipient shall prepare and file a similar written statement
each time it receives funding from any governmental agency which is additional
to that revenue disclosed in the Subrecipient's initial revenue disclosure
statement hereunder. Such statement shall be filed with the Agency, within
fifteen (15) calendar days following receipt of such additional funding. The
Subrecipient shall make available for inspection and audit by the City's and
Agency's representatives, upon request, at any time or times during the duration
of this Agreement and during a period of five (5) years thereafter, all of its
books and records relating to the operation by it of each project or business
activity which is funded in whole or in part with governmental monies, whether
or not such monies are received through the City. All such books and records
shall be maintained by the Subrecipient at their designated business location.
Failure to comply with the requirements of this section of the Agreement shall
constitute a material breach of this Agreement upon which the City may, among
its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
10. Joint Funding
For programs in which there are sources of funds from the private sector in
addition to HUD CDBG funds, the Subrecipient shall provide proof of such
funding. The City shall not pay for any services provided by the Subrecipient
which are funded by other sources. All restrictions and/or requirements
provided in this Agreement relative to accounting, budgeting, and reporting,
apply to the total program regardless of funding sources.
II. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid
First Class Mail to the following Address:
3
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
To the Subrecipient:
Scott Rodde
National Development Council
1500 Third Street, Suite D
Napa, CA 94558
12. Assilmment
This Agreement is not assignable by the Subrecipient without the express prior
written consent of the City, which consent shall be given in the City's sole
discretion. Any attempt by the Subrecipient to assign any performance of the
terms of this Agreement shall be null and void and shall constitute a material
breach of this Agreement upon which the City may, among its other remedies,
and without limitation, cancel, terminate or suspend this Agreement.
13. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving
its thirty (30) day notice in writing to the other party. The Director or
hislher designee is hereby empowered to give said notice, subject to
ratification by the Mayor and Common Council. Further, the City may
immediately terminate this Agreement upon the termination, suspension,
discontinuation or substantial reduction in HUD CDBG funding for the
Agreement activity. Further, and not withstanding any other provision of
this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement,
whether stated in a federal statute or regulation, an assurance, in a state
plan or obligation, a notice of award, or elsewhere, the awarding agency
or city may take anyone or more of the following actions, as appropriate
in the circumstances:
(i) Temporarily withhold cash payments pending correction of the
deficiency by the Subrecipient or more severe enforcement action
by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for)
all or part of the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the
City's or the Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
4
Further, and notwithstanding any other provision of this Agreement, the award
may be terminated for convenience in accordance with Title 24, Code of Federal
Regulations, Part 85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the
Subrecipient during a suspension or after termination of this Agreement
are not allowable unless the City expressly authorizes them in the Notice
of Suspension or Termination or subsequently. Other Subrecipient costs
during suspension or after termination which are necessary and not
reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred
by the Subrecipient before the effective date of suspension or
termination, are not in anticipation of it, and, in the case of a
termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or
expired normally at the end of the funding period in which the
termination takes effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate
and work in collaboration with City departments, to include but not limited to:
Police Department, Fire Department and Code Compliance in an effort to
promote the well-being of citizens and aid in reducing crime, blight and unsafe
conditions. Also, subrecipients may be required from time to time to attend
meetings to be held at the Agency. Failure to cooperate may result in the
termination of this Agreement in accordance with Section 17. Termination and
Termination Costs, Recital (a) of this Agreement.
14. Program Income
Any and all program income (as defined at Title 24, Code of Federal
Regulations, Part 570.500(a)) received by the Subrecipient during the term of
this Agreement shall be immediately returned to the City. Any and all program
income on hand with the Subrecipient at the time of the expiration of this
Agreement, or received by the Subrecipient after the expiration of this
Agreement, shall be paid to the City pursuant to the provisions of paragraph 19
ofthis Agreement.
15. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason
whatsoever, the Subrecipient shall forthwith transfer to the City, any CDBG
funds on hand at the time of such expiration or termination and any accounts
receivable attributable to the use of CDBG funds including, without limitation,
program income. Further, any real property under the control of the
Subrecipient that was acquired or improved in whole or in part with CDBG
funds in excess of $25,000 shall either be: (a) used to meet one of the national
objectives set forth in Title 24, Code of Regulations, Section 570.208, or any
5
successor statute, until five (5) years after the expiration or termination of this
Agreement, or for such longer period oftime as determined to be appropriate by
the City in its sole discretion; or (b) disposed of in a manner that results in the
City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG
funds for acquisition of, or improvement to, such real property.
16. Fiscal Limitations
HUD may in the future place progranunatic or fiscallimitation(s) on CDBG
funds not presently anticipated. Accordingly, the City reserves the right to
revise this Agreement in order to take account of actions affecting HUD
program funding. In the event of funding reduction, the City may reduce the
budget of this Agreement as a whole or as to cost category, and may, at its sole
discretion, limit the Subrecipient's authority to commit and spend funds. Where
HUD has directed or requested the City to implement a reduction in funding,
with respect to funding for this Agreement, the Director or his/her designee may
act for the City in implementing and effecting such a reduction and in revising
the Agreement for such purpose. The Director or his/her designee may act for
the City in suspending the operation of this Agreement for up to sixty (60) days,
upon three (3) days written notice to the Subrecipient of his/her intention to so
act. In no event, however, shall any revision made by the City affect
expenditures and legally binding commitments made by the Subrecipient before
it received notice of such revision, provided that such amounts have been
committed in good faith and are otherwise allowable and that such commitments
are consistent with HUD cash withdrawal guidelines.
17. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through
this Agreement to pay for entertainment, meals, or gifts.
18. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release,
indemnify and hold the City and Agency, their officers, officials, attorneys,
agents, employees, and volunteers, harmless from and against any loss, liability,
claim, or damages that may arise or result from activities of the Subrecipient, its
officers, agents, and employees and, shall, at its own costs, expense and risk,
defend any and all legal proceedings that may be brought against the City and
Agency on any claim, demand, or alleged liability, and shall satisfy any
settlement or judgment that may be rendered against any of them arising or
resulting from activities of the Subrecipient, and shall assume liability for any
and all direct expense incurred in providing services pursuant to this Agreement
and shall assume any and all responsibilities for loss or damage resulting from
negligence, injury, illness or disease arising out of the provision of services.
The Subrecipient, however, is obligated to promptly notify the City and Agency
in writing of any such loss or damage.
6
19. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the
Agreement the following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall
require the carriers of this coverage to waive all rights of subrogation
against the City and Agency, their officers, volunteers, employees,
contractors and subcontractors. The Subrecipient shall maintain all
California statutory requirements of $1 ,000,000 limit.
b. Comprehensive General and Automobile Liability Insurance. The
Subrecipient shall obtain general liability insurance on a per occurrence
basis with a combined single limit of One Million Dollars ($1,000,000);
and automobile liability insurance for owned, hired and non-owned
vehicles on a per occurrence basis with a combined single limits of One
Million Dollars ($1,000,000). Additional insured endorsements are
required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents,
employees and volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
1. All insurance coverage must be maintained throughout the
duration of this Agreement.
2. Insurance companies must have an A.M. Best Rating ofB+VIl or
better.
3. Policy deductibles must be stated for each coverage. Deductibles
greater than $5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage,
limits, deductibles and insurers; and blanket endorsements
for all applicable coverage if agent has authority to issue it;
or
b. Binders of insurance for all coverage. Agents must confirm
that policy endorsements have been ordered from the
respective insurance companies. Upon issuance, policy
endorsements and a corresponding Certificate of Insurance
listing all insurers and coverage must be submitted to the
City and Agency.
7
NOTE: Insurance binders are only valid for 30 days and
may need to be reissued if the policy endorsements are still
pending. Binders may be issued for a maximum of three,
thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements
to the City and Agency, evidencing the insurance coverage above required, five
business days prior to the commencement of performance of services hereunder,
which certificates shall provide that such insurance shall not be terminated or
expire without thirty (30) day prior written notice to the City and Agency, and
shall maintain such insurance from the time the Subrecipient commences
performance of services hereunder, until the completion of such services.
All policies, with respect to the insurance coverage required above, except for
the worker's compensation coverage, shall contain additional insured
endorsements naming the City and Agency, and their officers, agents,
employees and volunteers as additional name insured, with respect to liabilities
arising out of the performance of services hereunder.
20. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable
federal, state, county and city laws and regulations governing conflict of interest.
To this end, the Subrecipient will make available or shall provide copies of all
applicable federal, state, county and city laws and regulations governing conflict
of interest, to its agents and employees, and shall furnish to the City and
Agency, prior to execution of this Agreement, a written list of all current or
proposed sub grantees/subcontractors, vendors, and personal service providers,
including subsidiaries. This list may be limited to those
subgranteeslsubcontractors, vendors or personal service providers, including
subsidiaries - which will receive Ten Thousand Dollars ($10,000) or more
during the term of this Agreement. Such list shall include the names, addresses,
telephone numbers and identification of principal parties and description of
services to be provided. During term of this Agreement, the Subrecipient shall
notify the City and Agency in writing of any change in the list within fifteen
(15) days of any change.
21. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of
funds when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this
Agreement;
8
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the
scope of services under this Agreement; and
Related to salaries, are in accordance with applicable salary ordinances or laws.
22. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when
such modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the
scope of services under this Agreement; and
Do not alter the amount of compensation under this Agreement.
23. Indeoendent Contractor
The parties hereto in the performance of this Agreement will be acting in the
independent capacity and not as agents, employees, partners, joint ventures, or
associates of one another. The employees or agents of one party shall not be
deemed or construed to be the agent or employees of the other party for any
purpose whatsoever.
24. Amendments: Variations
This writing with an attachment embodies the whole of the Agreement of the
parties hereto. There are no oral Agreements not contained herein. Except as
herein provided, addition or variation of the terms of this Agreement shall not be
valid unless made in the form of a written amendment to this Agreement
formally approved and executed by all parties.
25. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed
before the last three (3) months of the Agreement period and all equipment bills
are to be paid before the last two (2) months of this period. No property or
equipment, other than supplies, may be purchased during the final three (3)
months of the Agreement. The Subrecipient shall complete all purchases of
supplies before the last two (2) months of the Agreement and shall pay all
supply bills before the final month of the Agreement. Invoices which have not
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been received by the Agency within sixty (60) days after the Agreement
termination date shall not be honored. Exceptions to these limitations require
prior written approval by the City and Agency, or its designee.
26. AC<1uisition ofSuDDlies and Eauipment
Following approval by the City for necessary supplies and equipment for
Agreement performance, the Subrecipient may purchase from a related
agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than
minimum specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient
related acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its
employees, agents or officers.
27. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement.
The Subrecipient shall maintain such property, personnel, financial and other
records and accounts as are considered necessary by HUD, and the City, to
assure proper accounting for all CDBG funds authorized under this Agreement.
The Subrecipient will permit on-site inspection by the City and Agency and
HUD representatives, and ensure that its employees and board members furnish
such information, as in the judgment of the City and HUD, may be relevant to a
question of compliance with contractual conditions and HUD directives, or the
effectiveness, legality, and achievements of the program. All the Subrecipient
records, with the exception of confidential client information, shall be made
available to representatives of the City and appropriate federal agencies. The
Director or hislher designee will conduct periodic program progress reviews.
These reviews will focus on the extent to which the planned program has been
implemented and measurable goals achieved, the effectiveness of program
management, and the impact of the program.
28. Monthlv Progress Reports
By the fifth (5th) day of each month, the Subrecipient shall submit a Quarterly
Status Report on the progress of the program to the Agency. A supporting
narrative will also be required, that describes in measurable terms, the
accomplishments and activities attained during the reporting month by the
Subrecipient in meeting the goals described in Attachment 1 during the
reporting period.
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29. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs
included in the Subrecipient's program budget. Agreement funds shall not be
used as security or to guarantee payments for any non-program obligations, nor
as loans for non-program activities. All bank accounts for the Subrecipient shall
be non-interest bearing.
30. Religious Proselytizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious
proselytizing or political activities in connection with the performance of this
Agreement. Funds under this Agreement will be used exclusively for
performance of the services required under this Agreement and no funds shall be
used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement
regarding the provision of public services with CDBG funds, pursuant to Title I
of the Housing and Community Development Act of 1974, as amended, and
provided the Subrecipient is and has qualified to participate in this Agreement as
a religious or denominational institution or organization or an organization
operated for religious purposes which is supervised or controlled by or in
connection with a religious or denominational institution or organization, the
Subrecipient:
a. Represents that it is not, or may not be deemed to be, a religious or
denominational institution or organization or an organization operated for
religious purposes which is supervised or controlled by or in connection
with a religious or denominational institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment
or give preference in employment to persons on the basis of
religion;
(ii) It will not discriminate against any person applying for such public
services on the basis of religion and will not limit such services or
give preference to persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no
religious worship or services, engage in no religious proselytizing,
and exert no other religious influence in the provision of such
public services;
(iv) The funds received under this Agreement shall not be used to
construct, rehabilitate, or restore any facility which is owned by the
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Subrecipient and in which the public services are to be provided;
provided that, minor repairs may be made if such repairs (1) are
directly related to the public services, (2) are located in a structure
used exclusively for non-religious purposes, and (3) constitute in
dollar terms only a minor portion of the CDBG expenditure for the
public services.
31. Audits
The Subrecipient is required to arrange for an independent financial and
compliance audit annually for each fiscal year Federal funds are received under
this Agreement. An audit may also be conducted by Federal, State, or local
funding source agencies as part of the City's audit responsibilities. The results
of the independent audit must be submitted to the City within thirty (30) days of
completion. Within thirty (30) days of the submittal of audit report, the
Subrecipient shall provide a written response to all conditions or findings
reported in said audit report. The response must examine each condition or
finding and explain a proposed resolution, including a schedule for correcting
any deficiency, within six (6) months after receipt of the audit report. The City
and Agency, and its authorized representatives shall, at all times, have access for
the purpose of audit or inspection to any and all books, documents, papers,
records, property, and premises of the Subrecipient, whose staff will cooperate
fully with authorized auditors when they conduct audits and examinations of the
Subrecipient's program. If indications of misappropriation or misapplication of
the funds of this Agreement cause the City to require a special audit, the cost
will be encumbered and deducted from this Agreement budget. Should the
special audit confirm misappropriation or misapplication of funds, the
Subrecipient shall reimburse the City.
32. Counterparts
This Agreement may be executed in counterparts. When executed, each
counterpart shall be deemed an original, irrespective of date of execution. Said
counterparts shall together constitute one and the same Agreement.
33. Status of the Subrecipient
This Agreement shall not become effective until such time as the Director or
hislher Designee submits to the Subrecipient written notice that the Subrecipient
is an eligible Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code
of Federal Regulations, Section 570.204(c). The Subrecipient represents and
warrants that once recognized as an Eligible Subrecipient, it will take any and all
necessary actions to remain an Eligible Subrecipient. Further, in this regard, in
the event the Subrecipient no longer qualifies as an Eligible Subrecipient, it shall
forthwith notify the City in writing of such lapse of qualification.
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34. Legal Proceedings
Should any legal proceedings be conunenced to enforce, enjoin, or collect funds
or otherwise affect this agreement between the parties, it shall be filed in San
Bernardino County Superior Court. The prevailing party shall be entitled to
recover its reasonable legal fees. The costs, salary and expenses of the City
Attorney and members of his office in enforcing this Agreement on behalf of the
City and Agency shall be considered as "legal fees" for the purposes of this
paragraph.
35. Attachment
Attachment I to this Agreement is an integral part of this agreement and has
been incorporated herein. The Agreement shall not become effective until such
time as the Subrecipient has properly signed said Agreement, as required, and
the Director or his/her designee has reviewed and approved the form.
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ATTACHMENT 1
SCOPE OF SERVICES
The duties and responsibilities of the Consultant shall include, but are not limited to the
following:
1. Provide assistance to promote industrial development.
2. Provide assistance on Agency projects as directed.
3. Assist in the provision of community development float financing.
4. Assist in securing Small Business Administration Section 504 and 7(a) financing,
including Grow America Fund.
5. Assist in the provision ofHUD 108 financing.
6. Provide technical support, financially analyze and/or package Small Business
Revolving Loan proposals as periodically referred by Agency staff.
7. Provide technical assistance and advocacy in agency efforts to seek awards of
governmental funds and approval of various programs.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
ATTEST:
By: ge~L /:1. ~
Racn I Clark, City Clerk
Approved as to Form:
SUBRECIPIENT
National Development Council
By: ,(;l
For National Development Council
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CDBG SUBRECIPIENT AGREEMENT
(Public Services Program)
between
THE CITY OF SAN BERNARDINO
and
SMALL BUSINESS DEVELOPMENT CENTER (SBDC)
1201 Research Park Drive, Suite 100
Riverside, California 92507
TABLE OF CONTENTS
OPERATIVE PROViSiONS......................................................................................................................................... I
I. Scope of Services ............................................................................................................................................ I
2. Time of Performance ......... .......................... ........ ............................................ .......... ......................................1
3. Compensation and Method of Payment...........................................................................................................1
4. Compliance with Laws and Assurances ..........................................................................................................2
5. AffIrmative Action ..........................................................................................................................................2
6. Discrimination.. ........... ...................... .......................... ...... ......................... ............. ................................... .....2
7. Accounting............ ............................................................... ................... ...... ........... ...... .................................2
8. Budget Section...... ................................................................................. ................ ....................... ..................3
9. Non-Expendable Property ................................................................... ............................................................3
10. Expendable Personal Property .......................... ................ .............. ...................... .................... .......... .............3
II. Purchase or Lease of Non-Expendable Property or Equipment ......................................................................3
12. Changes in Grant Allocation ...........................................................................................................................3
13. Revenue Disclosure Requirement ...................................................................................................................4
14. Joint Funding......... ................ ........................... ............... ........... ........................ ...................................... .......4
15. Notices .............. ............................................................... .............. ..................... .............................. ...............4
16. Assignment...... ....................... ....................... .................................. ...................... ................................. ......... 5
17. Termination and Termination Costs ................................................................................................................5
18. Program Income ........................... ....................... ....................... ................... ..... ......................... ......... ........... 6
19. Reversion of Assets ..................................... ............ ......................................... ........................ .................. ..... 6
20. Fiscal Limitations ........... ..................... ....... ....... ........... ................................. ................. ...... ...........................6
21. Use of Funds for Entertainment, Meals or Gifts..............................................................................................7
22. Release, Indemnification, and Hold Harmless.................................................................................................7
23. Insurance Requirements ......................................................... ................. ............... ................................. ........ 7
24. Conflict of Interest....... .................................................................... ........................ ...................... .......... ........ 9
25. Budget Modifications ................................................. ........................ .................... ....................... .......... ........ 9
26. Time of Performance Modifications............ ....... ....................... ........ ..................... .................. ................ ....... 9
27. Independent Contractor ........... .......... ................ ......................... ...... ................... ................... ....................... 10
28. Amendments; Variations ......... ............. ............... ....................... ....................... ............... ........................ .....1 0
29. Purchase and Invoice Deadlines ....................................................................................................................1 0
30. Acquisition of Supplies and Equipment ........................................................................................................10
31. Program Mouitoring ......................................................................................................................................1 0
32. Monthly Progress Reports .............................................................................................................................11
33. Use of Funds .................... ...................................................................... .................. .......................... ............ II
34. Religious Proselytizing or Political Activities...............................................................................................11
35. Audits ....................... ..................................................... ..................... ................... ......................... ...............12
36. Counterparts ........... ...................................................................... ..................... ......................... ...................13
37. Status of the Subrecipient .................................... .............................................. ............... ............................. 13
38. Legal Proceedings .........................................................................................................................................13
39. Exhibits........................................................ .......... ....... ....... ........................ ............ .......................... ............ 13
EXHIBIT I
EXHIBIT 2
EXHIBIT 3
EXHIBIT 4
EXHIBIT 5
EXHIBIT 6
EXHIBIT 7
EXHIBIT 8
EXHIBIT 9
Project Activity/Description
Budget Summary
Budget Justification - Part I (Service/Supplies)
Maintenance and Operation Commitment
Schedule ofPayments/Request for Reimbursement Only
Insurance Inventory
Income Qualification Statement
Certification
CDBG Compliance Report
AGREEMENT
This Agreement is entered into this 1st day of July, 2006, by and between the City of San
Bernardino, a municipal corporation, hereinafter referred to as the "City" and Small Business
Development Center, hereinafter referred to as the "Subrecipient."
WITNESSETH
WHEREAS, the City has entered into a contract with the United States of America through
its Department of Housing and Urban Development (HUD) to execute the City's Community
Development Block Grant (CDBG) Program under the Housing and Community Development Act
of 1974, as amended, hereinafter called the "Act;" and
WHEREAS, the City and the Subrecipient have an interest in providing necessary services to
and enhancement of the quality of life of its citizens; and
WHEREAS, the City and the Subrecipient recognize that the project herein is eligible under
HUD regulations; and
WHEREAS, the City and the Subrecipient desire to cooperate in the implementation of the
program by reason of experience, preparation, organization, staffing, and facilities to provide
services for the benefit of low- and moderate-income persons.
NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
OPERATIVE PROVISIONS
1. Scooe of Services
The Subrecipient shall perform all the services described in the Project Description and
Scope of Services set forth on Exhibit "1" to this Agreement a copy of which is attached
hereto and incorporated herein by this reference.
2. Time of Performance
Said services of the Subrecipient are to commence on July 1,2006, and shall be completed
no later than June 30, 2007.
3. Comoensation and Method ofPavrnent
For performance of such services, the City shall pay the Subrecipient an amount of money
not to exceed Twenty Thousand Dollars ($20,000.00) which the Mayor and Common
Council approved as part of the Fiscal Year 2006/2007 CDBG budget. Said payment shall
constitute full and complete compensation for performance by the Subrecipient of the
Services under this Agreement. Method of payment shall be in the form of a Request for
Reimbursement in accordance with the terms and conditions set forth on Exhibit "6" to this
Agreement, a copy of which is attached hereto and incorporated herein by this reference. All
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Requests for Reimbursement shall be submitted on a monthly basis in accordance with HUD
regulations "Audit Ready." The Redevelopment Agency of the City of San Bernardino (the
"Agency") on behalf of the City, will reimburse the Subrecipient one-twelfth (1/12) of total
allocation beginning the month of July 2006. Verifiable supporting documentation of
expenditures for services rendered, plus proof of payment all acceptable to the City in the
sole discretion of the City shall be submitted prior to any payment by the City to the
Subrecipient. Supporting statements shall give the total of said monthly expenses and shall
also itemize the same in detail conforming to the Budget Summary set forth on Exhibit "2".
After timely receipt of each supporting statement, the City will draw a warrant within thirty
(30) days in favor of the Subrecipient for the total amount of the Request for Reimbursement
approved by the City. The City will reject and return reimbursement requests not properly
and/or completely submitted.
4. Compliance with Laws and Assurances
The Subrecipient hereby assures and certifies that it has complied and will continue to
comply with the Act and all applicable federal, state, and local laws, ordinances, regulations,
policies, guidelines, and requirements as they relate to acceptance and use of federal funds
for this federally-assisted program. This Agreement is subject to all such laws, ordinances,
regulations, policies and guidelines, including, without limitation, the Act; Title 24, Code of
Federal Regulations, Part 85; Title 24, Code of Regulations, Part 570; and U.S. Office of
Management and Budget Circulars applicable including, without limitation, A-87, A-95, A-
110, A-122 and A-128.
5. Affirmative Action
The Subrecipient shall make every effort to ensure that all projects funded wholly or in part
by HUD CDBG funds shall provide equal employment and career advancement opportunities
for minorities and women. In addition, the Subrecipient shall make every effort to employ
residents of the area and shall keep a record of the positions that have been created directly or
as a result of this program.
6. Discrimination
No person shall, on the grounds of race, sex, creed, color, religion or national origin, be
excluded from participating in, be refused the benefits of, or otherwise be subjected to
discrimination in any activities, programs, or employment supported by this Agreement.
7. Accounting
The Subrecipient shall establish and maintain on a current basis a adequate accrual
accounting system in accordance with generally accepted accounting principles, practices,
and standards.
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8. Budget Section
No more than the amounts specified in the Budget Justification set forth on Exhibit "3", shall
be spent for the separate cost categories specified in Budget Sununary set forth on Exhibit 2,
without prior written approval of the Executive Director (the "Director") of the Agency, the
Administrator of the CDBO Program, or hislher Designee.
9. Non-Expendable Propertv
A record shall be maintained by the Subrecipient for each item of nonexpendable property
acquired for this program with HUD CDBO funds. This record shall be provided to the City
as well as being available for inspection and audit upon reasonable notice by the City at the
request of the City. Non-expendable property means tangible personal property having a
useful life of more than one (I) year and an acquisition cost of Three Hundred Dollars
($300.00) or more per unit. The Subrecipient shall not purchase or agree to purchase non-
expendable property without the prior written approval from the Director or hislher designee.
Upon completion or early termination of this Agreement, the City reserves the right to
determine the final disposition of said non-expendable property acquired for this program
and HUD CDBO funds in compliance with applicable laws and regulations. Said disposition
may include, but is not limited to, the City taking possession of said non-expendable
property.
10. Expendable Personal Propertv
Expendable personal property refers to all tangible personal property other than non-
expendable personal property. The Subrecipient shall not purchase or agree to purchase
expendable personal property with a unit value of Three Hundred Dollars ($300.00) or more
per unit without the prior written approval of the Director or hislher designee.
11. Purchase or Lease of Non-Expendable Propertv or Equipment
The Subrecipient shall obtain three documented bids prior to purchasing or leasing any non-
expendable personal property or equipment over Three Hundred Dollars ($300.00) in unit
value as approved in the Budget set forth on Exhibit "3." The Subrecipient shall purchase or
lease from the lowest responsive and responsible bidder. All equipment that has a purchase
or lease price of over Fifty Dollars ($50.00) in unit value and life expectancy of more than
one (I) year shall be properly identified and inventoried and shall be charged at its actual
price, deducting all cash discounts, rebates and allowances received by the Subrecipient.
This inventory shall be provided to the City as well as being available for inspection and
audit upon reasonable notice by the City at the request of the City.
12. Changes in Orant Allocation
The City reserves the right to reduce the grant allocation when the City's fiscal monitoring
indicates that the Subrecipient's rate of expenditure will result in unspent funds at the end of
the program year. Changes in the grant allocation will be done after consultation with the
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Subrecipient. Such changes shall be incorporated into this Agreement by written
amendments.
13. Revenue Disclosure Requirement
By its execution of this Agreement, the Subrecipient certifies that it has previously filed with
the Agency, a written statement listing all revenue received, or expected to be received, by
the Subrecipient from federal, state, city and county, and from other governmental agencies,
and applied or expected to offset, in whole or in part, any of the costs incurred by the
Subrecipient in conducting current or prospective projects or business activities, including,
but not limited to, the project or business activity which is the subject of this Agreement.
Such statement shall reflect the name and a description of such project, the dollar amount of
funding provided, or to be provided, by each and every governmental agency to each such
project or business activity, and the full name and address of each such governmental agency.
During the term of this Agreement, the Subrecipient shall prepare and file a similar written
statement each time it receives funding from any governmental agency which is additional to
that revenue disclosed in the Subrecipient's initial revenue disclosure statement hereunder.
Such statement shall be filed with the Agency, within fifteen (IS) calendar days following
receipt of such additional funding. The Subrecipient shall make available for inspection and
audit by the City's and Agency's representatives, upon request, at any time or times during
the duration of this Agreement and during a period of five (5) years thereafter, all of its books
and records relating to the operation by it of each project or business activity which is funded
in whole or in part with governmental monies, whether or not such monies are received
through the City. All such books and records shall be maintained by the Subrecipient at their
designated business location. Failure to comply with the requirements of this section of the
Agreement shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate, or suspend this
Agreement.
14. Joint Funding
For programs in which there are sources of funds from the private sector in addition to HUD
CDBG funds, the Subrecipient shall provide proof of such funding. The City shall not pay
for any services provided by the Subrecipient which are funded by other sources. All
restrictions and/or requirements provided in this Agreement relative to accounting,
budgeting, and reporting, apply to the total program regardless of funding sources.
IS. Notices
All notices herein required shall be in writing. Notices shall be sent by prepaid First Class
Mail to the following Address:
To the City:
Economic Development Agency
Attn.: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
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To the Subrecipient:
Vincent McCoy
Small Business Development Center
1201 Research Park Drive, Suite 100
Riverside, CA 92507
16. Assilmment
This Agreement is not assignable by the Subrecipient without the express prior written
consent of the City, which consent shall be given in the City's sole discretion. Any attempt
by the Subrecipient to assign any performance of the terms of this Agreement shall be null
and void and shall constitute a material breach of this Agreement upon which the City may,
among its other remedies, and without limitation, cancel, terminate or suspend this
Agreement.
17. Termination and Termination Costs
(a) This Agreement may be terminated at any time by any party upon giving its thirty
(30) day notice in writing to the other party. The Director or hislher designee is
hereby empowered to give said notice, subject to ratification by the Mayor and
Common Council. Further, the City may immediately terminate this Agreement upon
the termination, suspension, discontinuation or substantial reduction in HUD CDBG
funding for the Agreement activity. Further, and not withstanding any other
provision of this Agreement, if the Subrecipient materially fails to comply with any
term of this Agreement, or the award the subject of this Agreement, whether stated in
a federal statute or regulation, an assurance, in a state plan or obligation, a notice of
award, or elsewhere, the awarding agency or city may take anyone or more of the
following actions, as appropriate in the circumstances:
(i) Temporarily withhold cash payments pending correction of the deficiency by
the Subrecipient or more severe enforcement action by the awarding agency;
(ii) Disallow (that is, deny both use of funds and matching credit for) all or part of
the cost of the activity or action not in compliance;
(iii) Wholly or partly suspend or terminate the current award for the City's or the
Subrecipient's program;
(iv) Withhold further awards for the Program; or
(v) Take other remedies that may be legally available.
Further, and notwithstanding any other provision of this Agreement, the award may be
terminated for convenience in accordance with Title 24, Code of Federal Regulations, Part
85.44.
(b) Costs of the Subrecipient resulting from obligations incurred by the Subrecipient
during a suspension or after termination of this Agreement are not allowable unless
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the City expressly authorizes them in the Notice of Suspension or Termination or
subsequently. Other Subrecipient costs during suspension or after termination which
are necessary and not reasonably avoidable are allowed if:
(i) The costs result from obligations which were properly incurred by the
Subrecipient before the effective date of suspension or termination, are not in
anticipation of it, and, in the case of a termination, are noncancellable; and
(ii) The costs would be allowable if the award were not suspended or expired
normally at the end of the funding period in which the termination takes
effect.
(c) All subrecipients receiving CDBG funds will be required to cooperate and work in
collaboration with City departments, to include but not limited to: Police Department,
Fire Department and Code Compliance in an effort to promote the well-being of
citizens and aid in reducing crime, blight and unsafe conditions. Also, subrecipients
may be required from time to time to attend meetings to be held at the Agency.
Failure to cooperate may result in the termination of this Agreement in accordance
with Section 17. Termination and Termination Costs, Recital (a) of this Agreement.
18. Program Income
Any and all program income (as defined at Title 24, Code of Federal Regulations, Part
570.500(a)) received by the Subrecipient during the term of this Agreement shall be
immediately returned to the City. Any and all program income on hand with the
Subrecipient at the time of the expiration of this Agreement, or received by the Subrecipient
after the expiration of this Agreement, shall be paid to the City pursuant to the provisions of
paragraph 19 of this Agreement.
19. Reversion of Assets
Upon the expiration or termination of this Agreement, for any reason whatsoever, the
Subrecipient shall forthwith transfer to the City, any CDBG funds on hand at the time of such
expiration or termination and any accounts receivable attributable to the use of CDBG funds
including, without limitation, program income. Further, any real property under the control
of the Subrecipient that was acquired or improved in whole or in part with CDBG funds in
excess of $25,000 shall either be: (a) used to meet one of the national objectives set forth in
Title 24, Code of Regulations, Section 570.208, or any successor statute, until five (5) years
after the expiration or termination of this Agreement, or for such longer period of time as
determined to be appropriate by the City in its sole discretion; or (b) disposed of in a manner
that results in the City being reimbursed in the amount of the current fair market value of real
property less any portion of the value attributable to expenditures of non-CDBG funds for
acquisition of, or improvement to, such real property.
20. Fiscal Limitations
HUD may in the future place programmatic or fiscal limitation(s) on CDBG funds not
presently anticipated. Accordingly, the City reserves the right to revise this Agreement in
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order to take account of actions affecting HUD program funding. In the event of funding
reduction, the City may reduce the budget of this Agreement as a whole or as to cost
category, and may, at its sole discretion, limit the Subrecipient's authority to commit and
spend funds. Where HUD has directed or requested the City to implement a reduction in
funding, with respect to funding for this Agreement, the Director or hislher designee may act
for the City in implementing and effecting such a reduction and in revising the Agreement
for such purpose. The Director or hislher designee may act for the City in suspending the
operation of this Agreement for up to sixty (60) days, upon three (3) days written notice to
the Subrecipient ofhislher intention to so act. In no event, however, shall any revision made
by the City affect expenditures and legally binding commitments made by the Subrecipient
before it received notice of such revision, provided that such amounts have been committed
in good faith and are otherwise allowable and that such commitments are consistent with
HUD cash withdrawal guidelines.
21. Use of Funds for Entertainment. Meals or Gifts
The Subrecipient certifies and agrees that it shall not use funds provided through this
Agreement to pay for entertainment, meals, or gifts.
22. Release. Indemnification. and Hold Harmless
The Subrecipient shall defend (if requested by the City and the Agency), release, indemnify
and hold the City and Agency, their officers, officials, attorneys, agents, employees, and
volunteers, harmless from and against any loss, liability, claim, or damages that may arise or
result from activities of the Subrecipient, its officers, agents, and employees and, shall, at its
own costs, expense and risk, defend any and all legal proceedings that may be brought
against the City and Agency on any claim, demand, or alleged liability, and shall satisfY any
settlement or judgment that may be rendered against any of them arising or resulting from
activities of the Subrecipient, and shall assume liability for any and all direct expense
incurred in providing services pursuant to this Agreement and shall assume any and all
responsibilities for loss or damage resulting from negligence, injury, illness or disease arising
out of the provision of services. The Subrecipient, however, is obligated to promptly notifY
the City and Agency in writing of any such loss or damage.
23. Insurance Reauirements
The Subrecipient shall secure and maintain throughout the term of the Agreement the
following types of insurance with limits as shown:
a. Statutory Worker's Compensation Insurance. The Subrecipient shall require the
carriers of this coverage to waive all rights of subrogation against the City and
Agency, their officers, volunteers, employees, contractors and subcontractors. The
Subrecipient shall maintain all California statutory requirements of$I,OOO,OOO limit.
b. Comprehensive General and Automobile Liability Insurance. The Subrecipient shall
obtain general liability insurance on a per occurrence basis with a combined single
limit of One Million Dollars ($1,000,000); and automobile liability insurance for
owned, hired and non-owned vehicles on a per occurrence basis with a combined
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single limit of One Million Dollars ($1,000,000). Additional insured endorsements
are required for general and automobile liability policy coverage.
Additional insured shall be listed as:
The City and Agency, their officers, officials, attorneys, agents, employees and
volunteers.
c. Other Requirements and Acceptable Proof of Insurance.
I. All insurance coverage must be maintained throughout the duration of this
Agreement.
2. Insurance companies must have an A.M. Best Rating of B+ VII or better.
3. Policy deductibles must be stated for each coverage. Deductibles greater than
$5,000 must include a letter of credit.
4. Acceptable Proof of Insurance:
a. ACCORD Certificate of Insurance listing all coverage, limits,
deductibles and insurers; and blanket endorsements for all applicable
coverage if agent has authority to issue it; or
b. Binders of insurance for all coverage. Agents must confirm that policy
endorsements have been ordered from the respective insurance
companies. Upon issuance, policy endorsements and a corresponding
Certificate of Insurance listing all insurers and coverage must be
submitted to the City and Agency.
NOTE: Insurance binders are only valid for 30 days and may need to be
reissued if the policy endorsements are still pending. Binders may be
issued for a maximum ofthree, thirty (30) day periods.
The Subrecipient shall furnish certified copies of all policies and endorsements to the City
and Agency, evidencing the insurance coverage above required, five business days prior to
the commencement of performance of services hereunder, which certificates shall provide
that such insurance shall not be terminated or expire without thirty (30) day prior written
notice to the City and Agency, and shall maintain such insurance from the time the
Subrecipient commences performance of services hereunder, until the completion of such
services. An "Insurance Inventory" in the form of which is attached hereto as Exhibit "7"
and incorporated herein by this reference, shall be completed by the Subrecipient and
approved by the City and Agency prior to the commencement of performance of services
hereunder.
All policies, with respect to the insurance coverage required above, except for the worker's
compensation coverage, shall contain additional insured endorsements naming the City and
Agency, and their officers, agents, employees and volunteers as additional name insured,
with respect to liabilities arising out of the performance of services hereunder.
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24. Conflict of Interest
The Subrecipient, its agents and employees shall comply with all applicable federal, state,
county and city laws and regulations governing conflict of interest. To this end, the
Subrecipient will make available or shall provide copies of all applicable federal, state,
county and city laws and regulations governing conflict of interest, to its agents and
employees, and shall furnish to the City and Agency, prior to execution of this Agreement, a
written list of all current or proposed subgranteeslsubcontractors, vendors, and personal
service providers, including subsidiaries. This list may be limited to those
subgranteeslsubcontractors, vendors or personal service providers, including subsidiaries -
which will receive Ten Thousand Dollars ($10,000) or more during the term of this
Agreement. Such list shall include the names, addresses, telephone numbers and
identification of principal parties and description of services to be provided. During term of
this Agreement, the Subrecipient shall notify the City and Agency in writing of any change in
the list within fifteen (15) days of any change.
25. Budget Modifications
The City may grant budget modifications to this Agreement for the movement of funds
within the budget categories identified in Exhibit "2" when such modifications:
a. Do not exceed $10,000 per budget cost category;
b. Are specifically requested by the City;
c. Do not alter the amount of compensation subject to or under this Agreement;
d. Will not change the project goals or scope of services;.
e. Are in the best interests of the City and the Subrecipient in performing the scope of
services under this Agreement; and
f. Related to salaries, are in accordance with applicable salary ordinances or laws.
26. Time of Performance Modifications
The City may grant time of performance modifications to this Agreement when such
modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by the City;
c. Will not change the project goals or scope of services;
d. Are in the best interest of the City and the Subrecipient in performing the scope of
services under this Agreement; and
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e. Do not alter the amount of compensation under this Agreement.
27. Independent Contractor
The parties hereto in the performance of this Agreement will be acting in the independent
capacity and not as agents, employees, partners, joint ventures, or associates of one another.
The employees or agents of one party shall not be deemed or construed to be the agent or
employees of the other party for any purpose whatsoever.
28. Amendments: Variations
This writing with attachments, embodies the whole of the Agreement of the parties hereto.
There are no oral Agreements not contained herein. Except as herein provided, addition or
variation of the terms of this Agreement shall not be valid unless made in the form of a
written amendment to this Agreement formally approved and executed by all parties.
29. Purchase and Invoice Deadlines
Purchase of equipment and property, other than supplies, shall be completed before the last
three (3) months of the Agreement period and all equipment bills are to be paid before the
last two (2) months of this period. No property or equipment, other than supplies, may be
purchased during the final three (3) months of the Agreement. The Subrecipient shall
complete all purchases of supplies before the last two (2) months of the Agreement and shall
pay all supply bills before the final month of the Agreement. Invoices which have not been
received by the Agency within sixty (60) days after the Agreement termination date shall not
be honored. Exceptions to these limitations require prior written approval by the City and
Agency, or its designee.
30. Acquisition of Supplies and Equipment
Following approval by the City for necessary supplies and equipment for Agreement
performance, the Subrecipient may purchase from a related agency/organization only if:
(a) Prior authorization is obtained in writing from the City;
(b) No more than charges for reimbursement costs are made and no less than minimum
specifications are met as provided in writing by the City;
(c) A community related benefit is derived from such the Subrecipient related
acquisition; and
(d) No conflict of interest or private gain accrues to the Subrecipient or its employees,
agents or officers.
31. Program Monitoring
The City will monitor the Subrecipient in the performance of this Agreement. The
Subrecipient shall maintain such property, personnel, financial and other records and
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r-
accounts as are considered necessary by HUD, and the City, to assure proper accounting for
all CDBG funds authorized under this Agreement. The Subrecipient will permit on-site
inspection by the City and Agency and HUD representatives, and ensure that its employees
and board members furnish such information, as in the judgment of the City and HUD, may
be relevant to a question of compliance with contractual conditions and HUD directives, or
the effectiveness, legality, and achievements of the program. All the Subrecipient records,
with the exception of confidential client information, shall be made available to
representatives of the City and appropriate federal agencies. The Subrecipient will maintain a
copy of the Income Qualification Statement in the form of which is attached hereto as
Exhibit "8" and incorporated herein by this reference, for each client served. The Director or
hislher designee will conduct periodic program progress reviews. These reviews will focus
on the extent to which the planned program has been implemented and measurable goals
achieved, the effectiveness of program management, and the impact of the program.
32. Monthlv Progress Reports
By the fifth (5th) day of each month, the Subrecipient shall submit a Monthly Status Report
on the progress of the program to the Agency. This report shall conform to the HUD Direct
Benefit Form, in the form of which is attached hereto as Exhibit "9" and incorporated herein
by this reference. Totals should reflect monthly and cumulative data of all
personslhouseholds assisted under this Agreement. A supporting narrative will also be
required, that describes in measurable terms, the accomplishments and activities attained
during the reporting month by the Subrecipient in meeting the goals described in Exhibit "1"
during the reporting month.
33. Use of Funds
Funds allocated pursuant to this Agreement shall be used exclusively for costs included in the
Subrecipient's program budget. Agreement funds shall not be used as security or to
guarantee payments for any non-program obligations, nor as loans for non-program
activities. All bank accounts for the Subrecipient shall be non-interest bearing.
34. Religious ProseIvtizing or Political Activities
The Subrecipient agrees that it will not perform or permit any religious proselytizing or
political activities in connection with the performance of this Agreement. Funds under this
Agreement will be used exclusively for performance of the services required under this
Agreement and no funds shall be used to promote any religious or political activities.
In addition to, and not in substitution for, other provisions of this Agreement regarding the
provision of public services with CDBG funds, pursuant to Title 1 of the Housing and
Community Development Act of 1974, as amended, and provided the Subrecipient is and has
qualified to participate in this Agreement as a religious or denominational institution or
organization or an organization operated for religious purposes which is supervised or
controlled by or in connection with a religious or denominational institution or organization,
the Subrecipient:
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a. Represents that it is not, or may not be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes which is
supervised or controlled by or in connection with a religious or denominational
institution or organization;
b. Agrees that, in connection with such public services:
(i) It will not discriminate against any employee or applicant for employment on
the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such public services on
the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no religious
worship or services, engage in no religious proselytizing, and exert no other
religious influence in the provision of such public services;
(iv) The funds received under this Agreement shall not be used to construct,
rehabilitate, or restore any facility which is owned by the Subrecipient and in
which the public services are to be provided; provided that, minor repairs may
be made if such repairs (I) are directly related to the public services, (2) are
located in a structure used exclusively for non-religious purposes, and (3)
constitute in dollar terms only a minor portion of the CDBG expenditure for the
public services.
35. Audits
The Subrecipient is required to arrange for an independent financial and compliance audit
annually for each fiscal year Federal funds are received under this Agreement. An audit may
also be conducted by Federal, State, or local funding source agencies as part of the City's
audit responsibilities. The results of the independent audit must be submitted to the City
within thirty (30) days of completion. Within thirty (30) days of the submittal of audit report,
the Subrecipient shall provide a written response to all conditions or findings reported in said
audit report. The response must examine each condition or finding and explain a proposed
resolution, including a schedule for correcting any deficiency, within six (6) months after
receipt of the audit report. The City and Agency, and its authorized representatives shall, at
all times, have access for the purpose of audit or inspection to any and all books, documents,
papers, records, property, and premises of the Subrecipient, whose staff will cooperate fully
with authorized auditors when they conduct audits and examinations of the Subrecipient's
program. If indications of misappropriation or misapplication of the funds of this Agreement
cause the City to require a special audit, the cost will be encumbered and deducted from this
Agreement budget. Should the special audit confirm misappropriation or misapplication of
funds, the Subrecipient shall reimburse the City.
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36. Counterparts
This Agreement may be executed in counterparts. When executed, each counterpart shall be
deemed an original, irrespective of date of execution. Said counterparts shall together
constitute one and the same Agreement.
37. Status of the Subrecipient
This Agreement shall not become effective until such time as the Director or his/her
Designee submits to the Subrecipient written notice that the Subrecipient is an eligible
Subrecipient ("Eligible Subrecipient") as defined in Title 24, Code of Federal Regulations,
Section 570.204(c). The Subrecipient represents and warrants that once recognized as an
Eligible Subrecipient, it will take any and all necessary actions to remain an Eligible
Subrecipient. Further, in this regard, in the event the Subrecipient no longer qualifies as an
Eligible Subrecipient, it shall forthwith notify the City in writing of such lapse of
qualification.
38. Legal Proceedings
Should any legal proceedings be commenced to enforce, enjoin, or collect funds or otherwise
affect this agreement between the parties, it shall be filed in San Bernardino County Superior
Court. The prevailing party shall be entitled to recover its reasonable legal fees. The costs,
salary and expenses of the City Attorney and members of his office in enforcing this
Agreement on behalf of the City and Agency shall be considered as "legal fees" for the
purposes ofthis paragraph.
39. Exhibits
IIII
IIII
IIII
IIII
IIII
IIII
IIII
The Exhibits to this Agreement are an integral part of this agreement and have each been
incorporated herein. The Agreement shall not become effective until such time as the
Subrecipient has properly filled out and fully executed each exhibit to this Agreement, as
required, and the Director or his/her designee has reviewed and approved the form and
content of each exhibit.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and
year first written above.
CITY OF SAN BERNARDINO,
a municipal corporation
BY;~~
P 'c J. Morris~r
City of San Bernardino
ATTEST:
By:~.IJ.~
Rach Clark, City Clerk
Approved as to Form:
SUBRECIPIENT
Small Busin s Development Center
of the Inl Em'
ss Development Center
Empire
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