HomeMy WebLinkAbout55F - RESO - WIOA FUNDSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 4, 2015
TITLE:
RESOLUTION, APPROPRIATION ADJUSTMENT,
AND SUBGRANT AGREEMENT ACCEPTING
FEDERAL WORKFORCE INNOVATION
AND OPPORTUNITY ACT TITLE I FUNDS FOR
PROGRAM YEAR 2015 -2016
(STRATEGIC PLAN NO 2,4)
to sem�Z�
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1e1 Reading
❑ Ordinance on 2 "d Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Adopt a resolution authorizing the City Manager or designee to enter into a sub -grant
agreement, for a period from April 1, 2015 to June 30, 2017, to receive funds for the Federal
Workforce Innovation and Opportunity Act with the State of California Employment
Development Department.
2. Authorize the City Manager and Clerk of the Council to execute the attached sub -grant
agreement and all necessary documents with the State of California Employment
Development Department, for a period from April 1, 2015 to June 30, 2017, for an amount of
$1,136,469.00.
3. Approve an appropriation adjustment recognizing an additional $13,554 of Workforce
Innovation and Opportunity Act Youth funds in the revenue account and appropriating the
same in expenditure accounts.
DISCUSSION
The federal Workforce Innovation and Opportunity Act (WIOA) was signed into law on July 22,
2014. WIOA is designed to help job seekers access employment, education, training, and
support services to succeed in the labor market and to match employers with the skilled workers
they need to compete in the global economy. WIOA supersedes the Workforce Investment Act
of 1998 and is the first legislative reform of the public workforce system in 15 years. The Act
takes effect on July 1, 2015 with the Department of Labor responsible for its implementation.
55F -1
WIOA Title I Sub -grant for PY 2015 -16
August 4, 2015
Page 2
Recently, the California Workforce Investment Board recommended approval that Santa Ana be
designated as a local workforce development area under WIOA. The Governor and Secretary of
the Labor and Workforce Development Agency concurred with the recommendation. The
designation is from July 1, 2015 to June 30, 2017 and will be reviewed and evaluated every two
years against federal performance and compliance outcomes.
A new sub -grant agreement is required at the beginning of each program year in order to receive
WIOA funds as allocated by the State of California. Upon document execution and submission
to the Workforce Services Division of the State Employment Development Department (EDD),
the City's allocation for Program Year 2015 -2016 will be:
No further action will be required by the City to receive the Adult, Dislocated Worker, and Rapid
Response funds as EDD will disburse through unilateral subgrant modifications later in the
program year. Upon receipt of the modifications, requests to authorize the expenditure of the
additional program grant funds will be brought back to Council.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #2 Youth Education, Recreation,
Objective #4 (Partner with groups and organizations to promote education, senior services, job
training and development for all Santa Ana residents).
FISCAL IMPACT
The adopted FY 2015 -16 budget included the estimated $1,122,915 in WIOA Youth grant
funding. The final program allocation total is $13,554 greater than the original amount budgeted.
Approval of the appropriation adjustment will recognize $13,554 in revenue account (no.
12318002 - 52001) and increase the budgets in the following expenditure accounts:
Account
12318750 -69135
12318752 -61000
Amount
WIB Youth Council Payment to Subagent $12,199
One Stop Admin Salaries - Regular 1,355
TOTAL
55F -2
$13,554
Adult
Dislocated
Worker
Youth
Rapid
Response
Totals
Final Allocation Amounts
$1,112,927
$713,948
$1,136,469
$332,738
$3,296,082
Budgeted Amounts
$1,100,490
$702,725
$1,122,915
$173,260
$3,099,390
Difference
$ 12,437
$ 11,223
$ 13,554
$159,478
$ 196,692
No further action will be required by the City to receive the Adult, Dislocated Worker, and Rapid
Response funds as EDD will disburse through unilateral subgrant modifications later in the
program year. Upon receipt of the modifications, requests to authorize the expenditure of the
additional program grant funds will be brought back to Council.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #2 Youth Education, Recreation,
Objective #4 (Partner with groups and organizations to promote education, senior services, job
training and development for all Santa Ana residents).
FISCAL IMPACT
The adopted FY 2015 -16 budget included the estimated $1,122,915 in WIOA Youth grant
funding. The final program allocation total is $13,554 greater than the original amount budgeted.
Approval of the appropriation adjustment will recognize $13,554 in revenue account (no.
12318002 - 52001) and increase the budgets in the following expenditure accounts:
Account
12318750 -69135
12318752 -61000
Amount
WIB Youth Council Payment to Subagent $12,199
One Stop Admin Salaries - Regular 1,355
TOTAL
55F -2
$13,554
WIOA Title I Sub -grant for PY 2015 -16
August 4, 2015
Page 3
1n. n n V AJ
Kelly Reefers `)
Executive Director
Community Development Agency
DS /sb
Exhibit: 1. Resolution
2. Agreement
APPROVED AS TO FUNDS AND ACCOUNTS:
AC \Y.C-sN"Z` � A N s ^.
Francisco Gutierrez yp
Executive Director
Finance & Management Services Agency
55F -3
ROH — 08/04/15
RESOLUTION NO. 2015-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AUTHORIZING THE CITY MANAGER OR
DESIGNEE TO EXECUTE A SUBGRANT AGREEMENT
AND ALL NECESSARY DOCUMENTS TO RECEIVE
FUNDS FOR THE WORKFORCE INNOVATION AND
OPPORTUNITY ACT WITH THE STATE OF CALIFORNIA,
WORKFORCE SERVICES DIVISION, THROUGH
PROGRAM YEAR 2018
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. The Workforce Innovation and Opportunity Act (WIOA) of 2014 provides
funds to Local Workforce Development Areas (LWDA) to operate job - training
programs permissible under the Act for adults, dislocated workers and youth
meeting specific criteria set forth in the Act.
B. Recently the California Workforce Investment Board recommended approval
that Santa Ana be designated as a local workforce development area under
WIOA. The Governor and Secretary of the Labor and Workforce
Development Agency concurred with the recommendation. The designation
is from July 1, 2015 to June 30, 2017.
C. A new sub -grant is required at the beginning of each fiscal year in order to
avoid the commingling of funds from the previous year. Submittal of this sub -
grant is the first step in the process enabling the City of Santa Ana to receive
WIOA funds as they are allocated by the State of California at the beginning
of each new fiscal year.
D. Submittal of the sub -grant agreement will enable the City to receive WIOA
Youth Formula Funds. The City will also receive Adult and Dislocated Worker
Formula Funds through a unilateral modification from the State of California.
E. The sub -grant and other related documents from the State of California must
be reviewed and executed by the City of Santa Ana in order to receive said
funding.
Section 2. The City Council of the City of Santa Ana hereby authorizes the
City Manager or his designee to execute all necessary documents related to the sub -
grant with the State of California, Workforce Services Division, for the next three (3)
EXHIBIT 1 Resolution No. 2015 -XXX
55F-4 Page 1 of 2
years of the WIOA program, until June 30, 2018, so long as the City remains designated
as a local workforce development area under WIOA.
Section 3. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this day of 2015.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Sonia ;�aJyalhC City Attorney
Ryan
City
AYES: Councilmembers:
NOES: Council members:
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of Council, do hereby attest to and certify the attached
Resolution No. 2015- to be the original resolution adopted by the City Council of
the City of Santa Ana on 2015.
Date:
Clerk of Council
City of Santa Ana
Resolution No. 2015 -XXX
55F -5 Page 2 of 2
WIOA SUBGRANT AGREEMENT
SORGRANT NO: K69B383
MODIFICATION No: New SAN - 083153247
SANTA ANA WORKFORCE INV BOARD SUBGRANTEE CODE: SAN
SUBGRANTOR: SUBGRANTEE: SANTA ANA WORKFORCE INV BOARD
State of California 1000 E. SANTA ANA BLVD.
Employment Development Dept. SANTA ANA, CA 92701
Workforce Services Division
P.O.Box 826880, MIC 69 GOVERNMENTAL ENTITY: Yes
Sacramento, CA 94280 -0001
This Subgrant Agreement is entered into by and between the State of California, Employment Development
Department, hereinafter the Subgrantor, and the SANTA ANA WORAPORCR INV BOARD, hereinafter the Subgrantee.
The Subgrantee agrees to operate a program in accordance with the provisions of this Subgrant and to have
an approved WIOA Local Plan for the above name Subgrantor filed with the Subgrantor pursuant to the
Workforce Innovation and Opportunity Act (WIOA). This modification consists of this sheet and those of the
following exhibits, which are attached hereto and by this reference made a part hereof:
Funding Detail Chart
General Provisions
Youth Formula Rd 1
ALLOCATION(a) PRIOR AMOUNT: $0.00
The Subgrantor agrees to reimburse the Subgrantee INCREASE /DECREASE: $1,136,469.00
not to exceed the amount listed hereinafter 'TOTAL' TOTAL: $1,136,469.00
TERM OF AGREEMENT Terms of Exhibits are as
From:4 /1/2015 To: 6/30/2017 designated on each exhibit
PURPOSE: To initiate Program Year (PY) 2015 -16 WIOA Subgrant and incorporate WIOA Youth formula funding
under grant code 301. Term of these funds is from 04/01/2015 - 06/30/2017
APPROVED FOR SUBGRANPOR(EDD)(By Signature) APPROVED FOR SUEGRANTEE IBy Signature)
Name and Title Name and Title
JOSS LUIS MARQUEZ David Cavazos
CHIEF City Manager
WORKFORCE SERVICES DIVISION Y g
I hereby certify that to my knowledge, the budgeted This agreement does not fall within the meaning of
funds are available for the period and purpose of Section 10295 of Chapter 2 of Part 2 of Division 2 of
expenditures as stated herein the Public Contract Code of the State of California
and pursuant to 58 OPS Cal. Arty. Gen 586, is exempt
from review or approval of the Dept. of General
Services and the Dept. of Finance
Signature of EDD Accounting Officer
BodBali :1100 Rm%: 0869 8udgawq A ment No
LCha 025 6mmb: M14 FY 14115
Signature of EDO Contract Officer
55F -6
Page 1 of 13
Page 1
SNRGRANT AGREEMENT SQBGRANT NO: K69e3E3
FENDING DETAIL SHEET MODIFICATION NO: New
SANTA ANA WORKFORCE INV BOARD I. Allocation
Faa81a$ SOUFCa
j
Prior AIDennt
Iaeie9a0
Deareaae
Adjusted
Allocation
IA /WIOA Formula
9610fp 301 Youth Formula Rd 1
$0. DO
$1,136,469.00
$0.0
v $1,13fi, 469. 00
D4/01/2015 to 06/30/2017
rog /E.ement 61/00 Ref 101 Fed Catlg
17.259
Total WIA /WIOA Formula
00.00
$1,136,469.00
$0.0
$1, 136,469.00
Grand Total - K 60t $1, 136,469.001' $0.0 — $1713 46
9.00
All reference are to the Workforce innovation and Opportunity Act of 2014, Title 1„ unleae oCZerwiae noted. page 2 of 13
For modificetiona purpoaea only. Al' other terms and cooditiena of this exhibit not inoluded herein remain
55F -7
NARRATIVE
SUBGRANT NO:K698353
MODIFICATION NO: 0
SUBGRANTEE;SANTA ANA WORKFORCE INV BOARD
FUNDING SOURCE: Youth Formula Rd 1 - 301
TERM OF THESE FUNDS: 04/01/2015 - 06/30/2017
............................... ...............................
.Use of funds added by this modification is limited to this
period and additionally limited by the recapture provisions
:applicable to this funding source. The state may at its
;discretion recapture funds obligated under this exhibit, if
;expenditure plane are not being met.
' .............................. ...............................
PROGRAM NARRATIVE
The purpose of this action is to initiate this Local
Workforce Development Area's (LWDA) new Program Year (PY)
2015 -16 Workforce Innovation and Opportunity Act (WIOA)
Title I subgrant agreement end to incorporate WIOA Youth
formula funding into Grant Code (OC) 301. The amount in GC
301 represents this LwDA'9 entire youth formula allocation
for PY 2015 -16. The term date for these funds is April 1,
2015 to Tune 30, 2017. The LWDA will operate the WIOA
program in accordance with the approved Workforce Innovation
and Opportunity Plan on file in the Central Office Workforce
Services Division of the Employment Development Department,
P.O. Box 626882, MIC 50, Sacramento, CA 92480 -0001.
........................-rot- ..-replace- ............•___.-............ __.............................
'This exhibit adds to and does the terms and conditions of any other exhibit included
in this agreement which terms and conditions remain in full force and effect.
:.....---------- ................................................................................
WIOA (2015)
y ��
Page 3 of 13
Suhgrantee:SANTA ANA WORKFORCE INV BOARD Subgrant No;X69B353
Modification Not New
WIOA SUBGRANT AGREEMENT
1. Conpliance
In performance of this subgrant agreement, Subgrantee will fully comply with:
a) . The provisions of the Wor:cforce Innovation and Opportunity Act (WIOA) , the Office of Management and
Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards; Final Rule at 2 Code of Federal Regulations (CFR) Chapter I and Chapter II, Part 200, et a1 (here
after referred to as Uniform Guidance 2 CPR Part 200) and the Department of Labor's (DOL) exceptions at 2
CPR Chapter II, Part 2900, at al. (here after referred to as DOL Exceptions 2 CFR Part 2900) and all
regulations, legislation, directives, policies, procedures and amendments issued pursuant thereto.
b). Al' State legislation and regulations to the extent permitted by federal law and all policies,
directives and /or procedures, which implement the WIOA,
c). The provisions of Public Law 107 -288, Jobe for veterans Act, as the law applies to DOL job training
programs.
d) . Subgrantee will ensure diligence in managing programs under this subgrant agreement, including
performing appropriate monitoring activities and taking prompt corrective action against known violations
of the WIOA. Subgrantee agrees to conform to the provisions of the WIOA and the contract requirements as
referenced in Uniform Guidance 2 CFR Part 200, Appendix II, and DOL Exceptions 2 CFR Part 2900, Appendix
II to Part 200.
This subgrant agreement contains the entire agreement of the parties and supersedes all negotiations,
verbal or otherwise and any other agreement between the parties hereto. This subgrant agreement is not
intended to and will not be construed to create the relationship of agent, servant, employee,
partnership, joint venture or association between the 'pass-through- entity and the Subgrantee,
Subgrantee represents and warrants it is free to enter into and fully perform this subgrant agreement.
2. certification / Assurances
Except as otherwise indicated, the following certifications apply to all Subgrantee's.
a). Corporate Registration; The Subgrantee, if it is a corporation, certifies it is registered with the
Secretary of State of the State of California.
b). The Subgrantee agrees to comply with the Americana with Disabilities Act (ADA) of 1990, which,
prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines
issued pursuant to ADA. 142 D.S.C.12101 at sag).
c). Sectarian Activities: The Subgrantee certifies that this subgrant agreement does not provide for the
advancement or aid to any religious sect, church or creed, or sectarian purpose nor does it help to
support or sustain any school, col_ege, university, hompital or other institution controlled by any
relicieus creed, church, or sectarian denomination whatsoever, as specified by Article XV1, Section 5, of
the Constitution, regarding separation of church and state.
d). National Labor Relations Board: The Subgrantee (if not a public entity), by signing this subgrant
agreement, does swear under penalty of perjury, that no more than one final unappeasable finding of
contempt of court by a federal court has been issued against the Subgrantee within the immediately
preceding two -year period because of Subgrantee's failure to comply with an order of a federal court,
which orders the Subgrantee to comply with an order of the National Labor Relations Board (PCC10296).
e). Prior Findings: Subgrantee, by signing this subgrant agreement, does swear under penalty of perjury,
that it has not failed to satisfy any major condition in a current or previous subgrant agreement with
the DOL or the State of California and has not failed
to satisfy conditions relating to the resolution of a final finding and determination, including
repayment of debts.
f) . Drug -Free workplace Certification: By signing this subgrant agreement the Subgrantee hereby
certifies under penalty of perjury, under the laws of the State of California, that the Subgrantee will
comply with the requirements of the Drug -Free Workplace Act of 1990 and will provide a drug -free
workplace by taking the fallowing actions:
(1) . Publish a statement notifying employees that unlawful manufacture, distribution, dispensation,
possession, or use of a controlled substance is prohibited and specifying actions to be taken against
employees for violations.
(2). Establish a Drug-Free Awareness Program as required to inform employees about:
- the dangers of drug abuse in the workplace;
- the person's or organization's policy of maintaining a drug -free workplace;
- any available counseling, rehabilitation and employee assistance programs; and,
- penalties that may be imposed upon employees for drug abuse violations.
(3). Fvery employee who works on this subgrant agreement will,
- receive a copy of the company's drug -free policy statement; and,
- agree to abide by the terms of the company's statement as a condition
of employment on the eubgrant /contract.
g). Child Support Compliance Act: In accordance with the Child Support Compliance Act, the Subgrantee
recognizes and acknowledges:
ll). The importance of child and family support obligations and shall fully comply with applicable state
and federal laws relating to child and family support enforcement, including, but not limited to,
disclosure of information and compliance with earnings assignment orders, as provided in Chapter a
Page 4 of 13
55F -9
Icormenaing with Section 5200) of part 5 of Division 9 of the Family Code; and that to the beat of its
knowledge is fully complying with the earnings assignment orders of all employees and Is providing the
names of all new employees to the
New Employee Registry maintained by the California Employment Development Department (RDD).
h). Debarment and Suspension Certification: By signing this subgrant agreement, the Subgrantee hereby
certifies under penalty of perjury under the laws of the State of California that the Subgrantee will
comply with regulations implementing Executive Order 12549, Debarment and Suspension, Uniform Guidance 2
CFR Part 200, Appendix I that the prospective participant (i.e., grantee), to the beat of its knowledge
and belief, that it and its principals:
(1). Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily
excluded from covered transactions by any federal department or agency.
(2). Have not within a three -year period preceding this subgret agreement been convicted of or had a
civil judgement rendered against them for commission of fraud or a criminal offense in connection with
obtaining, attempting to obtain, or performing a public {federal, state or local) transaction or contract
under a public transaction, violation of federal or state antitrust statutes, or commission of
embezzlement, theft, forgery, bribery, falsification, or destruction of records, making false statements,
or receiving stolen property.
13). Are not presently indicted for or otherwise criminally or civilly charged by a government entity
(federal, state or local) with commission of any of the offenses enumerated in Section 2 of thin
certification.
(4). Have not within a three -year period preceding this subgrant agreement had one or more public
transactions (federal, state or local) terminated for cause of default.
Where the Subgrantee is unable to certify to any of the statements in this certification, such
prospective participant shall attach an explanation to this agreement.
i). Lobbying Restrictions: By signing this subgrant agreement the Subgrantee hereby assures and certifies
to the lobbying restrictions which are codified in the DOL regulations at Uniform Guidance 2 CPR Part 2D0
and DOL Exceptions 2 CFR 2900.
(1). No federal appropriated funds have been paid, by or on behalf of the undersigned, to any person for
Influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an
officer or employee of Congress, or an employee of a Member of Congress, in connection with this federal
contract, grant loan, or cooperative agreement, and the extension, continuation, renewal, amendment, or
modification of any federal contract, grant, loan, or cooperative agreement.
(2). If any funds other than federal appropriated funds have been paid or will be paid to any person for
influencing or attempting to influence an officer or employee of any agency, a Member of Congress, and
officer or employee of Congress, or an employee of a Member of Congress, in connection with this subgrant
agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form to Report
Lobbying" in accordance with its instructions.
13). The undersigned shall require that the language of the lobbying restrictions be included in the
award documents for subgrant agreement transactions over $100,000 (per OMB) at all tiara (including
subgrant agreements, contracts and subcontracte, under grants, loan, or cooperative agreements), and that
all subrecipients shall certify and disclose accordingly.
14). This certification is a material representation of fact upon which reliance is placed when this
transaction is executed. Submission of the Lobbying
Certification is a prerequisite for making or entering into this transaction imposed by Section. 1352,
Title 31, and U.S. Code. Any person who fails to file the required certification shall be subject to a
civil penalty of not less than $10,000 and not more than $10D,000 for each failure.
j). Priority Hiring Considerations:
If this subgrant includes services in excess of $200,000, the Subgrantee shall give priority
consideration in filling vacancies in positions funded by the subgrant to qualified recipients of aid
under Welfare and Institutions Section Cade 11200 in accordance with Public Contract Code S 10353.
k). Sweatfree Code of Conduct:
(1). All Subgrantees contracting for the procurement or laundering of apparel, garments or
corresponding accessories, or the procurement of equipment, materials, or supplies, ether than
procurement related to a public works contract, declare under penalty of perjury that no apparel,
garments or corresponding accessories, equipment, or supplies furnished to the state pursuant to the
contract have been laundered or produced in whole or in part by sweatshop labor, forced labor, convict
labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in
sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor
under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor. The
Subgrantee further declares under penalty of perjury that they adhere to the Sweatfree Code of Conduct as
set forth on the California Department of Industrial Relations website located at www dir.ca.gov, and
Public Contract Code Section 6108.
(2). The Subgrantee agrees to cooperate fully in providing reasonable access to the subgrantees' records,
documents, agents or employees, or premises if reasonably required by authorized officials of the -pass -
through" entity, the Department of Industrial Relations, or the Department of Justice to determine the
subgrantees' compliance with the requirements under paragraph a of the Sweatfree Cede of Conduct.
1). Unenforceable Provision:
In the event that any provision of this subgrant agreement is unenforceable or held to he
unenforceable, then the parties agree that all other provisions of this subgrant agreement have force and
effect and shall not be affected hereby,
m). Nondiscrimination Clause: -
(1). The conduct of the parties to this subgrant agreement will be in accordance with Title VI of the
Civil Rights Act of 1964, and the Rules and Regulations promulgated there under and the provisions of
WIOA, Section 188.
W. As a condition to the award of financial assistance from the Department of Labor under Title I of
WIOA, the grant applicant assures that it will comply fully with the nondiscrimination and equal
opportunity provisions of the following laws:
Section 108 of the WICA, which prohibits discrimination against all individuale in the United states on
the basis of race, color, religion, sex, national origin, age disability, political affiliation or
belief, and against beneficiaries on the basis of either citizenship /statue as a lawfully admitted
immigrant authorized to work in the United States or participation in any WIGA Title I - financially
Page 5 of 13
55F -10
assisted program or activity;
Title VI of the Civil Rights Act of 1964, as amended, which prohibits discrimination on the basis of
race, color and national origin;
Section 504 of the Rehabilitation Act of 1973, as amended, which prohibits discrimination against
qualified individuals with disabilities;
The Age Discrimination Act of 1975, as amended, which prohibits discrimination on the basis of age; and
Title Ix of -he Education Amendments of 1972, as amended, which prohibits discrimination on the basis of
sex in educational programs.
The grant applicant also assures that it will comply with Uniform Guidance 2 CFR Part 200, DOL Exceptions
2 CFR Part 2900 and all other regulations implementing the laws listed above. This assurance applies to
the grant applicant's operation of the WIOA Title I- financially assisted program or activity, and to all
agreements that grant applicant makes to carry out the WIOA Title I- financially assisted program or
activity. The grant applicant understands that the United States has the right to seek judicial
enforcement of this assurance.
(b). This Subgrantee shall include the nondiscrimination and compliance provisions of this clause in all
subcontracts to perform work under the subgrant agreement,
(o). This Subgrantee agrees to conform to nondiscrimination provisions of the WIOA and other federal
nondiscrimination requirements as referenced in WIOA Sec. 188.
W. Indemnification:
(1). The following provision applies only if the Subgrantee is a governmental entity:
Pursuant to the provision of Section 895.4 of the California Government Code, each party agrees to
indemnify and hold the other party harmless from all liability for damage to persons or property arising
out of or resulting from acts or omissions of the indemnifying party.
(2). The following provision applies only if the Subgrantee is a non - governmental entity:
The Subgrantee agrees to the extent permitted by law, to indemnify, defend and save harmless the •pasa-
through" entity, its officers, agents and employees from any and all claims and losses accruing or
resulting to any and all contractors, subcontractors, materials persons, laborers and any other persons,
firms or corporations, furnishing or supplying work, services, materials, or supplies in connection with
the performance of this agreement, and from any and all claims and losses accruing or resulting to any
persona, firma or corporations which may be injured or damaged by the Subgrantee in the performance of
this subgrant agreement.
Failure to comply with all requirements of the certifications in Section 2 may result in suspension of
payment under this aubgrant agreement or termination of this subgrant agreement or both, and the
Subgrantee may be ineligible for award of future state subgrant agreements /ecntracts if the department
determines that any of the following has occurred: (1) false information on the certifications, or (2)
violation of the terms of the certifications by failing to carry out the requirements as noted above.
o), Salary and Bonus Limitations: In compliance with Public Law 109 -234, none of the funds appropriated
in Public Law 109 -149 or prior Acts under the heading "Employment and Training" that are available for
expenditure on or after June 15, 2006, shall be used by a recipient or subrecipent of such funds to pay
the salary and bonuses of an individual, either as direct costs or indirect costs, at a rate in excess of
Executive Level II, except as provided for under section 101 of Public Law 109 -149, This limitation shall
not apply to vendors providing goods and services as defined in Uniform Guidance 2 CFR Part 200 and the
DOL Exceptions 2 CFR.Part 2960. Where States are recipients of such funds, States may establish a lower
limit for salaries and bonuses of those receiving salaries and bonuses from subrecipients of such funds,
taking into account factors including the relative cost -of- living in the States, the compensation levels
for programs involved including Employment and Training Administration programs. See Training and
Employment Guidance Letter number 5 -06 for further clarification.
The incurrence of costa and receiving reimbursement for these costa under this award certifies that your
organization has read the above special condition and is in compliance.
p). Federal Funding Accountability and Transparency Act (FFATA): As required by the FFATA, recipients
of federal awards are required to report Sub -award and executive compensation information. By signing
this subgran_ agreement the Subgrantee hereby assures and certifies to comply with the provisions of
FFATA, which includes requirements referenced in Uniform Guidance 2 CFR Part 200 and DOL Exceptions 2 CPR
Part 2900.
q) . AIR OR WATER POLLUTION VIOLATION: Under the State laws, the Contractor shall not be: (1) in Violation
of any order or resolution not subject to review promulgated by the State Air Resources Board or an air
pollution control district; (2) subject to cease and desist order not subject to review issued pursuant
to Section 13301 of the Water Code for violation of waste discharge requirements or discharge
prohibitions; or 13) finally determined to be in violation of provisions of federal law relating to air
or water pollution.
3. Standards of Conduct
The following standards apply to all Subgrantees:
a) . General Assurance: Every reasonable course of action will be taken by the Subgrantee in order to
maintain the integrity of this expenditure of public funds and to avoid favoritism and questionable or
improper conduct. This subgrant agreement will be administered in an impartial manner, free from efforts
to gain personal, financial or political gain. The Subgrantee agrees to conform to the nondiscrimination
requirements as referenced in WIOA, section 188.
b). Avoidance of Conflict of Economic Interest: An executive or employee of the Subgrantee, an elected
official in the area or a member of the Local Board, will not solicit or accept money or any other
consideration from a third person, for the performance of an act reimbursed in whole or part by the
Subgrantee or "pass - through" entity: Supplies, materials, equipment or services purchased with subgrant
agreement funds will be used solely for purposes allowed under this subgrant agreement. No member of the
Local Board will cast a vote on the provision of services by that member (or any organization, which that
member represents) or vote on any matter which would provide direct financial benefit to that member (or
immediate family of the member) or any business or organization which the member directly represents.
4. Coordination
Subgrantee will, to the maximum extent feasible, coordinate all programs and activities supported under
this part with other programs under the WIOA, including the Wagner- Peyser Act, Title 38 of the United
States Code, and other employment and training programs at the state and local level.
Subgrantee will consult with the appropriate labor organizations and /or employer representatives in the
design, operation or modification of the programs under th'' -s eubgrant agreement.
Page 6 of 13
55F -11
5, subcontracting
a). Any of the work or services specified in this subgrant agreement which will be performed by other
then by the Subgrantee will be evidenced by a written agreement specifying the terms and conditions of
such performance.
b). The Subgrantee will maintain and adhere to an appropriate system, consistent with federal, state and
local law, for the award and monitoring of contracts which contain acceptable standards for insuring
accountability.
c). The system for awarding contracts will contain safeguards to insure that the Subgrantee does not
contract with any entity whose officers have been convicted of fraud or misappropriation of funds within
the last two years.
6, Insurance
Except for city and county governmental entities, Subgrantees must provide the "pass- through" entity
evidence of the coverage specified in a, b, c and d below, The evidence of coverage shall include the
registration number of the subgrant agreement for identification purposes.
a). Subgrantee will obtain a fidelity bona in an amount of not less than
prior to the receipt of funds under this subgrant agreement. If the bond is canceled or reduced,
Subgrantee wi.1 immediately so notify the -pass-through- entity. In the event the bond is canceled or
revised, the 'pass-through' entity will make no further disbursements until it is assured that adequate
coverage has been obtained.
b). Subgrantee will provide general liability insurance with a combined limit of $1,000,CCO or public
liability and property damage coverage with a combined limit of not less than $1,000,0o0.
e). Subgrantee will provide broad form automobile liability coverage with limits as set forth in (b)
above, which applies to both owned /leased and non -owned automobiles used by the Subgrantee or its agents
in performance of this subgrant agreement, or, in the event that the Subgrantee will not utilize
owned /leased automobiles but intends to require employees, trainees or other agents to utilize their own
automobiles in performance of this subgrant agreement, Subgrantee will secure and maintain on file from
all such employees, trainees or agents a pelf- certification of automobile insurance coverage.
d). Subgrantee will provide Worker's Compensation Insurance, which complies with provisions of the
California Labor Code, covering all employees of the Subgrantee and all participants enrolled in work
experience programs. Medical and Accident Insurance will be carried for those participants not
qualifying as "employee' (Section 3350, at seq. of the California Labor Coda) for worker's Compensation.
e). The "pass- through" entity will be named as "Certificate Holder- of policies secured in compliance
with paragraphs a -d above and will be provided certificates of insurance or insurance company -binders -
prior to any disbursement of funds under this subgrant agreement, verifying the insurance requirements
have been complied with. The coverage noted in b and c above must contain the following clauses:
(1). Insurance coverage will not be canceled or changed unless 30 days prior to the effective date of
cancellation or change written notice is sent by the Subgrantee to:
Employment Development Department
Workforce Services Division
Financial Management Unit
P. 0. Box 526880, MIC 69
Sacramento, CA 94260 -0001
(2). State of California, its officers, agents, employees and servants are included as additional
insured, but only insofar as the operation under this subgrant agreement are concerned.
(3). The State of California is not responsible for payment of premiums or assessments on this policy.
7. Resolution
A county, city, district or other local public body must provide the state with a copy of a resolution,
order, motion, or ordinance of the local governing body which by law has authority to enter into an
agreement, authorizing execution of this subgrant agreement. Preferably revolutions should authorize a
designated position rather than a named individual.
s, Funding
It is mutually understood between the parties that this subgrant agreement may have been written before
ascertaining the availability of congressional and legislative appropriation of funds, for the mutual
benefit of both parties, in order to avoid program and fiscal delays which would occur if the subgrant
agreement was executed after that determination was made.
This subgrant agreement is valid and enforceable only if (1) sufficient funds are made available by the
State Budget Act of the appropriate state fiscal years covered by this subgrant agreement for the
purposes of this program and; (2) sufficient funds available to the state by the United States Government
for the fiscal years covered by this subgrant agreement for the purposes of this program. In addition,
this subgrant agreement is subject to any additional restrictions, limitations, or conditions enacted by
the Congress and Legislature or any statue enacted by the Congress and Legislature which may affect the
provisions, terms, or funding of this subgrant agreement in any manner.
a). At the expiration of the terms of this subgrant agreement or upon termination prior to the expiration
of this subgrant agreement, funds not obligated for the purpose of this subgrant agreement will be
immediately remitted to the "pass- through" Entity, and n longer available to the Subgrantee.
b) . The -pass-through- entity retains the right to suspend financial assistance, in whole or In part, to
protect the integrity of the funds or to ensure proper operation of the program, providing the Subgrantee
is given prompt notice and the opportunity for an informal review of the "pass- through" entity'$
decision, The Chief Deputy Director or his designee will perform this informal review and will issue the
final administrative decision within 60 Days of receiving the written request for review. Failure on the
part of the Subgrantee or a Subcontractor of the Subgrantee to comply with the provisions of this
subgrant agreement, or with the WIOA or regulations, when such failure involves fraud or misappropriation
of funds, may result in immediate withholding of funds.
c). The local Chief elected Official (CSO) of a unit of general local government designated as a Local
Workforce Development Area (LWDA) shall b$ liable to the EDD for all funds not expended in accordance
with WIOA, and shall return to the BUD all of those funds. if there is more than one unit of general
local government in a LWDA, the CROW will be the individuals) designated under an agreement executed
by the CROW of the local unite of government. The CBO(e) designated under the agreement shall be
Page 7 of 13
55F -12
liable to the BDD for all funds not expended in accordance with the WIOA, and shall return to the EDD all
of those funds.
9. Accounting and Cash Management
a), Subgrantee will comply with eonnrols, record keeping and fund accounting procedure requirements of
WIOA, federal and state regulations and directives to ensure the proper disbursal of, and accounting for,
Program funds paid to the Subgrantee and disbursed by the Subgrantee, under this subgrant agreement.
b). Subgrantee will submit requests for cash to coincide with immediate cash needs and assure that no
excess cash is on deposit in their accounts or the accounts of any tub- contracting service provider in
accordance with procedures established by
the "pass- through" entity. Failure to adhere to these provisions may result in suspending cash draw down
privileges and providing funds through a reimbursement process.
c). The "pass- through" entity retains the authority to adjust specific amounts of cash requested if the
"pass - through" entity Is records and subsequent verification with the Subgrantee indicate that the
Subgrantee has an excessive amount of cash in its account.
d), Income (including interest income) generated as a result of the receipt of WIOA activities, will be
utilized in accordance with policy and procedures established by the -pass- through" entity. Subgrantee
will account for any such generated income separately.
e). Subgrantee shall not he required to maintain a separate bank account but shall separately account for
WIOA funds on deposit. All funding under this subgrant agreement, will be made by check or wire transfer
payable to the Subgrantee for deposit in Subgrantee's bank account or city and county governmental bank
accounts. To provide for the necessary and proper internal control B, funds should be withdrawn and
disbursed by no lase than two representatives of the Subgrantee. The °pass- through" entity will have a
lien upon any balance of WIOA funds in these accounts, which will take priority over all other Liens or
claims.
10. Amendments
This subgrant agreement may be unilaterally modified by the "pass- through" entity under the following
circumstances:
a). 'There is an increase or decrease in federal or state funding levels.
b). A modification to the Subgrant is required in order to implement an adjustment to a Subgrantee's
Plan.
c). Funds awarded to the Subgrantee have not been expended in accordance with the schedule includad in
the approved Subgrantee'e plan. After consultation with the Subgrantee, the "pans - through" entity has .
determined that funds will not be spent in a timely manner, and such funds are for that reason to the
extent permitted by and in a manner consistent with state and federal law, regulations end policies,
reverting to the "pass - through" entity.
d). There is a change in state and federal law or regulation requiring a. change in the provisions of this
subgrant agreement.
a). An amendment is required to change the Subgrantees' name as listed on this subgrant agreement. Upon
receipt of legal documentation of the name change the state will process the amendment. Payment of
invoices presented with a new name cannot be paid prior to approval of said amendment.
Except as provided above, this subgrant agreement nay be amended only in writing by the mutual agreement
of both parties.
11. Reporting
Subgrantee will compile and submit reports of activities, expenditures, status of cash and closeout
information by the specified dates as prescribed by the °pass- through^ entity. All expenditure reports
must be submitted upon the accrual basis of accounting. Failure to adhere to the reporting requirements
of this agreement will result in funds not being released.
12. Termination
This subgrant agreement may be terminated in whole or in part for either of the two following
circumstances:
a). Termination for Convenience - Either the "pass- through" entity or the Subgrantee may request a
termination, in whole or in part, for convenience. The Subgrantee will give a ninety (90) calendar -day
advance notice in writing to the "pass- through" entity. The "pass- through" entity will give a ninety (90)
calendar -day advance notice in writing to the Subgrantea.
b) . Termination for Cause - The "pass- throughd entity may terminate this subgrant agreement in whole or
In part when it has determined that the Subgrantee has substantially violated a specific provision of the
WIOA regulations, the Uniform Guidance or implementing state legislation and corrective action has not
been taken.
(1) . All notices of termination must be in writing and be delivered personally or by deposit in the U. S.
Mail, postage prepaid, "Certified Mail -Return Receipt Requested ", and will be deemed to have been given
at the time of personal del-very or of the data of postmark by the U. S. Postal Service.
Notices to the Subgrantee will be addressed to:
Kelly, Reenders
Director / Administrator
SANTA ANA WORKFORCE INV BOARD
1000 B. SANTA ANA BLVD,
SANTA ANA, CA 92701
Notices to the "Pass- through" Entity will be addressed to:
Employment Development Department
Workforce Services Division
Financial Management Unit
P. 0. Box 826880, MIC 69
Sacramento, CA 94280 -0001
13, Records
55F -13
Page 8 of 13
a) . If participants are served under this eubgrant agreement, the Subgrantee will establish a participant
data system as prescribed by the "pass-through' entity.
b). Subgrantee will retain all records pertinent to this eubgrant agreement for a period of three years
from the date of final payment of this eubgrant agreement. If, at the end of three years, there is
litigation or an audit involving those records, the Subgrantee will retain the records until the
resolution of such litigation or audit. Refer to Uniform Guidance, Subpart D, Part 200.333 - 200.337.
c). The "pass - through' entity and /or the DOL, or their designee (refer to Uniform Guidance, Subpart F,
Part 200.500- 200.521)will have access to and right to examine, monitor and audit all records, documents,
conditions and activities related to programs funded by this eubgrant agreement. For purposes of this
section, - access to" means that the Subgrantee shall at all times maintain within the State of California
a complete set of records and documents related to programs funded by this agreement. The Subgrantee
shall comply with this requirement regardless of whether it ceases to operate or maintain a presence
within the State of California before the expiration of the eubgrant. Subgrantee's performance under the
terms and conditions herein specified will be subject to an evaluation by the -pass- through" entity of
the adequacy of the services performed, timeliness of response and a general impression of the competency
of the firm and its staff.
14. Audits
a). The Subgrantee will maintain and make available to auditors, at all levels, accounting and program
records including supporting source documentation and cooperate with all auditors. All governmental and
non - profit organisations must follow the audit requirements (single audit or program - specific audit
requirement) of Uniform Guidance 2 CFR Part 200 and DOL Exceptions 2 CFR Part 2900.
b). The Subgrantee and /or auditors performing monitoring or audits of the Subgrantee or its sub-
contracting service providers will immediately report to the -pass- through- entity any incidents of
fraud, abuse or other criminal activity in relation to this eubgrant agreement, the WIOA, or its
regulations.
15. Disallowed Coate
Except to the extent that the state determine$ it will assume liability, the Subgrantee will be liable
for and will repay, to the -pass-through" entity, any amounts expended under this eubgrant agreement
found not to be in accordance with W:OA including, but not limited to, disallowed costa. Such repayment
will be from funds (Non - Federal), other than those received under the wIOA.
19. Conflicts
a). Subgrantee will cooperate in the resolution of any conflict with the DOL that may occur from the
activities funded under this agreement.
b). In the event of a dispute between the -pass- through' entity and the Subgrantee over any part of thin
eubgrant agreement, the dispute may be submitted to non - binding arbitration upon the consent of both the
"pass - through" entity and the Subgrantee. An election for arbitration pursuant to this provision will
not preclude either party from pursuing any remedy for relief otherwise available.
17. Grievances and Complaint System
Subgrantee will establish and maintain a grievance and complaint procedure in compliance with the WIUA,
the Uniform Guidance 2 CFR Part 200, DOL Exceptions 2 CFA Part 2900, federal regulations and state
statues, regulations and policy.
18. Property
All property, whether finished or unfinished documents, data, studies and reports prepared or purchased
by the Subgrantee under this eubgrant agreement, will be disposed of in accordance with the direction of
the -pass- through- entity. rn addition, any tools and /or equipment furnished to the Subgrantee by the
•pass- through" entity and /or purchased by the Subgrantee with funds pursuant to this eubgrant agreement
will be limited to use within the activities outlined in this eubgrant agreement and will remain the
property of the United States Government and /or the "pass - through- entity. Upon termination of this
eubgrant agreement, Subgrantee will immediately return such tools and /or equipment to the -pass-through-
entity or dispose of them in accordance with the direction of the -pasa- through- entity.
19. Intellectual Property Provisions
a).Federal Funding
In any eubgrant funded in whole or in part by the federal government, "paas- through" entity may acquire
and maintain the Intellectual Property rights, title, and ownersbip, which result directly or indirectly
from the subgrant, except as provided in 37 CFR Part 401.14. However, pursuant to Uniform Guidance 2 CPR
Part 200 and DOL Exceptions 2 CFR Part 2900 the federal government shall have a royalty -free, non-
exclusive, irrevocable, paid -up license throughout the world to use, duplicate, or dispose of such
Intellectual Property throughout the world in any manner for governmental purposes and to have and permit
others to do so.
b) Ownership
(1). Except where -pass- through" entity has agreed in a signed writing to accept a license, 'pass-through-
entity shall he and remain, without additional compensation, the sole owner of any and ell rights, title
and interest in all intellectual property, from the moment of creation, whether or not jointly conceived,
that are made, conceived, derived from, or reduced to practice by Subgrantee or -pasa- through" entity and
which result directly or indirectly from this eubgrant agreement.
(2).FOr the purposes of this eubgrant agreement, Intellectual Property means recognized protectable
rights and interest ouch as: patents, (whether or not issued) copyrights, trademarks, service marks,
applications for any of the foregoing, inventions, trade secrets, trade dress, loges, insignia, color
combinations, slogan, moral rights, right of publicity, author's rights, contract and licensing rights,
works, mask works, industrial design rights, rights of priority, know haw, design flows, methodologies,
devices, business processes, developments, innovations, good will, any data or information maintained,
collected or stored in the ordinary course of business by -pass- through- entity, and all other legal
rights protecting intangible proprietary information as may exist now and /or hereafter come into
existence, and all renewals and extensions, regardless of whether those rights arise under the laws of
the United states, or any other state, country or jurisdiction.
(a). For the purposes of the definition of Intellectual Property, - works" means all literary works, -
writings and printed matter including the medium by which they are recorded or reproduced, photographs,
art work, pictorial and graphic representations and works of a similar nature, film, motion pictures,
digital images, animation cells, and other audiovisual works including positives and negatives thereof,
sound recordings, tapes, educational materials, interactive videos, computer software and any other
Page 9 of 13
55F -14
materials or products created, produced, conceptualized and fixed in a tangible medium of expression. It
includes preliminary and final products and any materials and information developed for the purposes of
producing those final products, "Works" does not include articles submitted to peer review or reference
journals or independent research projecns.
(3),In the performance of this subgrant agreement, Subgrantee may exercise and utilize certain of its
Intellectual Property in existence prior to the effective date of this subgrant agreement. In addition,
under this subgrant agreement, Subgrantele my access and utilize certain of -pass- through" entity�s
Intellectual property in existence prior to the effective date of this subgrant agreement. Except as
otherwise set forth herein, Subgrantee shall not use any of "pass- through^ entity's Intellectual Property
now existing or hereafter existing for any purposes without the prior written permission of -pass -
through" entity. Except as otherwise set forth herein, neither the Subgrantee nor -pass- through" entity
shall give any ownership interest in or rights to its Intellectual Property to the other Party. If,
during the term of this subgrant agreement, Subgrantee accesses any third -party Intellectual Property
that is licensed to -pass- through" entity, Subgrantee agrees to abide by all license and confidentiality
restrictions applicable to "pass- through" entity in the third - party's license agreement.
(4).SUbgrantee agrees to cooperate with "pass- through" entity in establishing or maintaining "pass -
through" entity's exclusive rights in the Intellectual Property, and in assuring -pass- through" entity's
sole rights against third parties with respect to the Intellectual Property. If the Subgrantee eaters
into any agreements or subcontracts with other parties in order to perform this subgrant agreement,
Subgrantee shall require the terms of the agreement(s) to include all Intellectual Property provisions of
paragraph nineteen a) through nineteen i), Such terms must include, but are not limited to, the
subcontractor assigning and agreeing to assign to -pass- through^ entity all rights, title and interest in
Intellectual Property made, conceived, derived from, or reduced to practice by the subcontractor,
suhgrantee or -paea- through" entity and which result directly or indirectly from this subgrant agreement
or any subcontract.
(5). Pursuant to paragraph nineteen (b) (4) of the Intellectual Property Previsions in Exhibit ES to this
subgrant agreement, the requirement for the Subgrantee to include all Intellectual Property Provisions of
paragraph nineteen a) through nineteen i) of the Intellectual Property Provisions in all agreements and
subcontracts it enters into with other parties does not apply to subgrant agreements or subcontracts that
are for customized and on -the -job training as authorized under 20 CPR 663.700 -730.
(6).SUbgrantee further agrees to assist and cooperate with "pass- through" entity in all reasonable
respects, and execute all documents and, subject to reasonable availability, give testimony and take all
further acts reasonably necessary to acquire, transfer, maintain, and enforce -pass-through" entity's
Intellectual Property rights and interests.
C). Retained Rights / License Rights
(1). Except for Intellectual Proper- passProper -pees- through' entity ty made, conceived, derived from, or
reduced to practice by Subgrantee or -pass- through^ entity and which result directly or indirectly from
this eubgrant agreement, Subgrantee shall retain title to all of its Intellectual Property to the extent
such Intellectual Property is in existence prior to the effective date of this subgrant agreement.
Subgrantee hereby grants to "paea - through- entity, without additional compensation, a permanent, non-
exclusive, royalty free, paid -up, worldwide, irrevocable, perpetual, non - terminable license to use,
reproduce, manufacture, sell, offer to sell, import, export, modify, publicly and privately
display / perfora, distribute, and dispose of Subgrantee's Intellectual Property with the right to
sublicense through multiple layers, for any purpose whatsoever, to the extent it is incorporated in the
Intellectual Property resulting from this subgrant, unless Subgrantee assigns all rights, title and
interest in the Intellectual Property as set forth herein.
(2) . Nothing in this provision shall restrict, limit, or Otherwise prevent Subgrantee from using any
ideas, concepts, know -how, methodology or techniques related to its performance under this subgrant
agreement, provided that Subgrantee'e user
does not infringe the patent, copyright, trademark rights, license or ether Intellectual Property rights
of -paea- through- entity or third party, or result in a breach or default of any provisions of paragraph
nineteen a) through nineteen i) or result in a breach of any provisions of law relating to
confidentiality.
d). Copyright
(1) Subgrantea agrees that for purposes of copyright law, all worka (as defined in Ownership, paragraph
nineteen (b) (2) (a) of authorship made by or on behalf of Subgrantee in connection with Subgrantee -s
performance of this subgrant agreement Shall be deemed ^works made for hire.- Subgrantee further agrees
that the work of each person utilized by Subgrantee in connection with the performance of this subgrant
agreement will be a -work made for hire," whether that person is an employee of Subgrantee or that person
has entered into an agreement with Subgrantee to perform the work. Subgrantee shall enter into a written
agreement with any such person that: (i) all work performed for Subgrantee shall be deemed a "work made
for hire^ under the Copyright Act and (ii) that person shall assign all right, title, and interest to
-pass- through- entity to any work product made, conceived, derived from or reduced to practice by
Subgrantee or -pass- through- entity and which result directly or indirectly from this subgrant agreement.
Refer to Uniform Guidance 2 CFR Part 200 and NOL Exceptions 2 CPR Part 2900.
(2) All materials, including, but not limited to, computer software, visual works or text, reproduced or
distributed pursuant to this subgrant agreement that include Intellectual Property made, conceived,
derived from, or reduced to practice by Subgrantee or "pass- through" entity and which result directly or
indirectly from this eubgrant agreement may not be reproduced or disseminated without prior written
permission from "pass- through- entity..
e). Patent Rights
With respect to inventions (refer to Uniform Guidance 2 CPR Part 200 and OOL Exceptions 2 CFR Part 2900,
made by Subgrantee in the performance of this subgrant agreement, which did not result from research and
development specifically included in the subgrantla scope of work, Subgrantee hereby grants to "pass -
through- entity a license as described under paragraph nineteen c) for devices or material incorporating,
or made through the use of such inventions. If Such inventions result from research and development Work
specifically included within the eubgrant agreement's scope of work, then Subgrantee agrees to assign to
"pass- through" entity, without addition compensation., all its right, title and interest in and to such
inventions and to assist - page - through- entity in securing United States and foreign patents with respect
thereto.
Page 10 of 13
55F -15
fl. Third -Party Intellectual Property
Except as provided herein, Subgrantee agrees that its performance of this oubgrant agreement shall not he
dependent upon or include any Intellectual Property of Subgrantee or third party without first: (i)
obtaining ^pass- through^ entity's prior written
approval; and (if) granting to or obtaining for •pave- through^ entityla, without additional compensation,
a license, as described in paragraph nineteen c), for any of
Subgrantees or third - party's Intellectual Property in existence prior to the effective date of this
subgrant agreement. If such a license upon these terms is unattainable, and -pass-through- entity
determines that the Intellectual Property should be included 'in or is required for Subgrartees
cerfor.ance of this subgrant agreement, Subgrantee shall obtain a license under terms acceptable to
°pass - through' entity.
g). Warranties
(1). Subgrantee represents and warrants that:
(a). It has secured and will secure all rights and licenses necessary for its performance of this
subgrant agreement.
(b). Neither Subgrantee's performance of this subgrant agreement, nor the exercise by either Party of the
rights granted in this subgrant agreement, nor any use, reproduction, manufacture, sale, offer to sell,
import, export, modification, public and private display /performance, distribution, and disposition of
the Intellectual Property made, conceived, derived from, or reduced to practice by Subgrantee or -pace-
through" entity and which result directly or indirectly from this subgrant agreement will infringe upon
or violate any Intellectual Property right, non - disclosure obligation, or ether proprietary right or
interest of any third -party or entity now existing under the laws of, or hereafter existing or issued by,
any state, the United States, or any foreign country. There are currently no actual or threatened claims
by any such third party based on an alleged violation of any ouch right by Subgrantee.
(c). Neither Subgranteea performance nor any part of its performance will violate the right of privacy
of, or constitute a libel or slander against any person or entity.
(d). It has secured and will secure all rights and licensee necessary for Intellectual Property
including, but not limited to, consent$, waivers or releases from all authors.
(e). of music or performances used, and talent (radio, television and motion picture talent), owners of
any interest in and to real estate, sites locations, property or props that may be used or shown.
(f). It has not granted and shall not grant to any person or entity any right that would or might
derogate, encumber, or interfere with any of the rights granted to °pass - through" entity in this subgrant
agreement,
(g). it has appropriate systems and controls in place to ensure that state and federal funds will not be
used in the performance of this subgrant agreement for the acquisition, operation or maintenance of
computer software in violation of copyright Iowa.
(h). It has no knowledge of any outstanding claims, licenses or other charges, liens, or encumbrances of
any kind or nature whatsoever that could affect in any way Subgrantees performance of this subgrant
agreement.
(2). -PASS- THROUGH" ENTITY MARES NO WARRANTY THAT THE INTELLECTUAL PROPERTY RESULTING FROM THIS SUBGRANT
AGREEMENT DOES NOT INFRINGE UPON ANY PATENT, TRADEMARK, COPYRIGHT OR ME LIKE NOW EXISTING OR
SUBSEQUENTLY ISSUED.
h). Intellectual Property Indemnity
(1). Subgrantee shall indemnify, defend and hold harmless "pass- through" entity and its licensees and
assignees, and its officers, directors, employees, agents, representatives, successors, and users of its
products, ( "Indemnities ") from and against all claims, actions, damages, losses, liabilities (or actions
or proceedings with respect to any thereof), whether or not rightful, arising from any and all actions or
claims by any third party or expenses related thereto (including, but not limited to, all legal expenses,
court costs, and attorney's fees incurred in investigating, preparing, serving as a witness in, or
defending against, any such claim action, or proceeding, commenced or threatened) to which any of the
Indemnities may be subject, whether or not Subgrantee is a party to any pending or threatened litigation,
which arise out of or are related to li) the incorrectness or breach of any of the representations,
warranties, covenants or agreements of Subgrantee pertaining to Intellectual Property; or (ii) any
Intellectual Property infringement, or any other type of actual or alleged infringement claim, arising
out of -pass-through- entity's use, repreduotion, manufacture , sale, offer to sell, distribution, import,
export, modification, public and private performance /display, license, and disposition of the
Intellectual Property made, conceived, derived from, or reduced to practice by Subgrantee or "pass -
through" entity and which result directly or indirectly from this subgrant agreement. This indemnity
obligation shall apply irrespective of whether the infringement claim is based on a patent, trademark or
copyright registration that was issued after the effective date of this eubgrant agreement. -pass-
through- entity reserves the right to participate in and /or control, at Subgrantee'a expense, any such
infringement action brought against ^pass- through" entity.
(2). Should any intellectual Property licensed by the Subgrantee to •pave- through" entity under this
subgrant agreement become the subject of an Intellectual Property infringement claim, Subgrantee will
exercise its authority reasonably and in good faith to preserve -paas- through" entity's right to use the
licensed Intellectual Property in accordance with this subgrant agreement at no expense to "pass- through"
entity. "pass - through" entity shall have the right to monitor and appear through its own counsel (at
Subgrantee'$ expense) in any such claim or action. In the defense or settlement of the claim, Subgrantee
may obtain the right for -pass-through- entity to continue using the licensed Intellectual Property or,
replace or modify the licensed Intellectual Property so that the replaced or modified Intellectual
Property becomes non - infringing provided that such replacement or modification is functionally equivalent
to the original licensed Intellectual Property. If such remedies are not reasonably available, -pass -
through" entity may be entitled to a refund of all monies paid under this subgrant agreement, without
restriction or limitation of any other rights and remedies available at law or in equity,
(3). Subgrantee agrees that damages alone would be inadequate to compensate -pass- through" entity for
breach of any term of these Intellectual Property provisions of paragraph nineteen a) through nineteen i)
by Subgrantee. Subgrantea acknowledges "pass - through" entity would suffer irreparable harm in the event
of such breach and agrees -paee- through" entity shall be entitled to obtain equitable relief, including
without limitation an injunction, from a court of competent jurisdiction, without restriction or
limitation of any other rights and remedies available at law or in equity.
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i). Survival
The provisions set forth herein shall survive any termination or expiration of this subgrant agreement or
any project schedule.
20. Confidentiality Requirements
The State of California and the Subgrantee will exchange various kinds of information pursuant to this
eubgrant agreement. That information will include data, applications, program files, and databases.
These data and information are confidential when they define an individual or an employing unit.
Confidential information requires special precautions to protect it from unauthorized use, access,
disclosure, modification, and destruction. The sources of Information may include, but are not limited
to, the EDD, the California Department of Social Services, the California Department of Education, the
California Department of Corrections and Rehabilitation, the County Welfare Department(s), the County IV-
D Directors Office of Child Support, the Office of the District Attorney, the California Department of
Mental Health, the California Office of Community Colleges and the Department of Alcohol and Drug
Programs.
The "pass - through" entity and Subgrantee agree that:
a). Each party shall keep all information that is exchanged between them in the strictest confidence and
make such information available to their own emp.oyees only on a wneed -to -know^ basis.
b). Each party shal_ provide security sufficient to ensure protection of confidential information from
improper use and disclosures, including sufficient administrative, physical, and technical safeguards to
protect this information from reasonable unanticipated threats to the security or confidentiality of the
Information,
c) . The Subgrantee agrees that information obtained under this eubgrant agreement will not be reproduced,
published, sold or released in original or in any other form for any purpose other than those
specifically identified in this agreement.
(1) Aggregate Summaries: All reports and /or publications developed by the Subgrantee based on data
obtained under this agreement shall contain confidential data in aggregated or statistical summary form
only. -Aggregated' refers to a data output that does not allow identification of an individual or
employer unit.
(2) Publication: Prior to publication, Subgrantee shall carefully analyze aggregated data outputs to
ensure the identity of individuals and /or employer unite cannot be inferred pursuant to Unemployment
Insurance Code Section 1094(c). Personal identifiers must be removed. Geographic identifiers should be
specified only in large areas and as needed, and variables should be recorded in order to protect
confidentiality.
(3) Minimum Data Cell Size: The minimum data cell size or derivation thereof shall be three participants
for any data table released to outside parties or to the public.
d). Each party agrees that no disaggregate data, identifying individuals or employers, shall be released
to outside parties or the public.
e). The Subgrantee shall notify "pass - through" entity's Information Security Office of any actual or
attempted information security incidents, within 24 hours of initial detection, by telephone at (916) 654-
6231. information Security Incidents include, but are not limited to, any event (intentional or
unintentional), that causes the lose, damage, or destruction, or unauthorized access, use, modification,
or disclosure of information assets.
The Subgrantee shall cooperate with the ^page- through" entity in any investigation of security incidents.
The system or device affected by an information security incident and containing confidential data
obtained in the administration of this program shall be immediately removed from operation upon
confidential data exposure or a known security breach. It shall remain removed from operation until
correction and mitigation measures are applied.
If the Subgrantee learns of a breach in the security of the system which contains confidential data
obtained under this Subgrant, then the Subgrantee must provide notification to individuals pursuant to
Civil Code Section 1798.82.
fl. The Subgrantee shall provide for the management and control of physical access to information assets
(including personal computer systems, computer terminals, while computing devices, and various
electronic storage media) used in performance of this Subgrant. This shall include, but is not limited
to, security measures to physically protect data, systems, and workstations from unauthorized access and
malicious activity; the prevention, detection, and suppression of fires; and the prevention, detection,
and minimization of water damage.
g) . At no time will confidential data obtained pursuant to this agreement be placed on a mobile computing
device, or on any torn of removable electronic storage media of any kind unless the data are fully
encrypted.
h). Each party shall provide its employees with access to confidential information with written
instructions fully disclosing and explaining the penalties for unauthorized use or disclosure of
confidential information found in Section 1795.55 of the Civil Code, Section 502 of the Penal Code,
Section 2111 of the Unemployment Insurance Code, Section 10850 of the welfare and Institutions Code and
other applicable local, state and federal laws.
i). Each party shall (where it is appropriate) store and process information in electronic format, in
such a way that unauthorized persona cannot reasonably retrieve the information by means of a computer.
j). Each party shall promptly return to the other party confidential information when its use ends, or
destroy the confidential information utilizing an approved method of destroying confidential information:
shredding, burning, or certified or witnessed destruction. Magnetic media are to be degaussed or
returned to the other party.
k) . If the 'pass- through^ entity or Subgrantee enters into an agreement with a third party to provide
WIOA services, the "pass- through^ entity or Subgrantee agrees to include these data and security and
confidentiality requirements in the agreement with that third party. In no event shall said information
be disclosed to any individual outside of that third party's authorized staff, subcontractor(a), service
providers, or employees.
1). The Subgrantee may, in its operation of the America's Job Center of California (AJCC), permit an AJCC
operator to enter into a subcontract to manage confidential information. This subcontract may allow an
individual to register for resume - distribution services at the same time the individual enrolls in
C2lJOeS. Subgrantee Shall ensure that all such subcontracts comply with the intellectual property
requirements of paragraph 19 of this Subgrant, the confidentiality requirements of paragraph 20 of this
Subgrant and any other tense of this Subgrant that may be applicable. In addition, the following
Page 12 of 13
55F -17
requirements must be included in the subcontracts:
(1). All client information submitted over the Internet to the subcontractor's databases must be
protected, at a minimum, by 128 -bit Secure Socket Layer (SSL) encryption. Clients' social security
numbers must be stored in a separate database within the subcontractor's network of Servers, and
protected by a firewall and a secondary database server firewall or AESI data encryption. If a
subcontractor receives client social security numbers or other confidential information in the course of
business, for example a resume - distribution service that provides enrollment in CalJOSS, Social security
numbers must be destroyed within two days after the client registers for CalJGSS. If a subcontractor
obtains confidential information as an agent of the subgrantee, the subcontract must specifically state
the purpose for the data collection and the tern of records retention must be Stated, and directly
related, to the purpose and use of the information. In accordance with Uniform Guidance 2 CFR Part 200
and DOL Exceptions 2 CFA Part 2900, social security numbers and other client specific information shall
not be retained for more than three years after a client completes services. The aubgrantee should
extend this period, only if any litigation, claim, negotiation, audit, or other action involving the
records has been started before the end of the three -year retention period. In this came tae records
should be maintained until completion of the action and resolution of all issues arising from it, or
until the close of the three -year retention period, whichever is later. Uniform Guidance 2 CFR Part 200
and DOL Exceptions 2 CPR Part 2900.
W. Client information (personal information that identifies a client such as name and social security
number) and /or demographic information of a client (such as wage history, address, and previous
employment) shall not be used as a basis for commercial solicitation during the time the client or agency
is using the subcontractor's Services. Client information and /or demographic information Shall not be
used for any purposes other than those specific program purposes set forth in the subcontract.
(3). An AJCC client must still be given the option to use the AJCC's services, including Cd1JOSS, even if
he or she chooses not to use any services of she subcontractor. This option shall be prominently,
clearly and immediately communicated to the client upon registration within the AJCC or for CdlJOHS, the
subcontractor's resume- distribution services, or any other services subcontractor offers to the client or
the A,CCC Operator.
(4). The subcontractor must clearly disclose all of its potential and intended uses of the client's
personal and /or demographic information for the services the client seeks and for any other services the
subcontractor offers. The subcontractor shall not use a client's personal and /or demographic information
without the client's prior permission. A link to the subcontractor's Privacy Policy shall appear
prominently on the registration Screens that list the potential and intended uses of the client's
personal and/or demographic information.
(5). when the "pass- through• entity modifies State automated systems such as the State CalJGSS System, it
shall provide reasonable notice of such changes to the Subgrantee. The Subgrantee shall be responsible
to communicate such changes to the AJCC Operator(6) in the local area.
m). Each party Shall designate an employee who shall be responsible for overall security and
confidentiality of its data and information systems and each party shall notify the other of any changes
in that designation. As of this date, the fallowing are those individuals:
FOR THE "PASS - THROUGH" ENTITY
Name: Jaime Gutierrez
Title: Section Manager
Address: P.O. Sox 826680, MIC 50
Sacramento, CA 942BO -0001
Telephone: (916) 654 -9699
Fax: (916) 654 -9586
FOR THE 3USGRANTEE
Deborah Sanchez
Title: Economic Development Specialist III
Telephone: (714) 565 -2621
Fax` (714) 565 -2602
21. Signatures
This subgrant agreement is of no force and effect until signed by both of the parties hereto. Subgrantee
will not commence performance prier to the beginning of this subgrant agreement.
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