HomeMy WebLinkAbout60A - CDBG PROGRAMREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MAY 1, 2018
TITLE:
APPROVE THE FISCAL YEAR 2018 — 2019
COMMUNITY DEVELOPMENT BLOCK
GRANT PROGRAM
{STRATEGIC PLAN NOS. 2,2; 2,4; 5,4; 5,6}
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on 1r Reading
❑ Ordinance on 2°d Reading
❑ Implementing Resolution
❑ Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Approve the Fiscal Year 2018 - 2019 Community Development Block Grant Program in the
estimated amount of $5,284,239 subject to adjustment upon notification of the Grant Year
2018 award from the United States Department of Housing and Urban Development.
Direct the City Attorney to finalize and authorize the City Manager and the Clerk of the
Council to execute memorandums of understanding with various city departments and
agreements with nonprofit organizations awarded funds as part of the approved Community
Development Block Grant Program for term beginning July 1, 2018 through June 30, 2019,
subject to funding adjustment upon notification of the Grant Year 2018 award from the
United States Department of Housing and Urban Development and non -substantive
changes approved by the City Manager and City Attorney.
City Department
Award
Community Development Agency - administration of the CDBG Program. Proposed
funding amount calculated based off 20% admin cap less Fair Housing amount. Funds are also
$2,067,532
used to make award grants of up to $5,000 to eligible microenter rise businesses in the City,
Parks, Recreation and Community Services Agency - Neighborhood park
$748,784
improvements.
Public Works Agency - Residential street improvements.
$748,784
Planning and Building Agency - To address property maintenance and life safety
violations which contribute to the visual blight and general decline of an area.
$864,263
60A-1
Fiscal Year 2018 — 2019 CDBG Program
May 1, 2018
Page 2
Fair Housing Organization
Award
Orange County Fair Housing Council Inc. — Provides fairhousing education,
landlord tenant counseling and enforcement services to combat housing discrimination and city
$62,241
administrative support for the residents of the City of Santa Ana. A commitment to further fair
housing is a requirement of CDBG funding.
Public Service Organizations
Award
Delhi Center — Teens Engaged in Learning and Leadership Program
$ 58,487
Delhi Center — Family Economic Success Initiative Program
$ 71,279
OC Children's Therapeutic Arts Center - After school Arts, Tutoring, Family
$ 59,320
Counseling, and Parenting Classes
ALBI - Skill enrichment self-expression, stress relief and socialization through various arts
$ 61,268
activities
The Illumination Foundation - Children's Resource Center for homeless and at -risk
$ 48,270
children and youth
Legal Aid Society of Orange County - Free legal assistance to help expunge
$ 43,938
criminal records
Project Access, Inc. - Equips low-income youth, adults, and seniors with wraparound
$ 37,220
support services
Public Law Center — Affordable Housing & Homelessness Prevention Program
$ 36,795
Nati's House Neutral Ground — Summer Night Lights Program
$ 51,670
Taller San Jose Hope Builders - Hard skills training in business administration and life
$ 48,836
skills
Young Men's Christian Association of Orange County — Financial assistance
$ 38,211
for Santa Ana Sorts & Aquatics programs and Santa Ana After School programs
The Cambodian Family — Program to assist low-income youth and parents from
$ 43,170
immigrant families to thrive in the areas of academics, leadership and parenting skills
Community Health Initiative of Orange County - Provides outreach,
$ 38,211
education, enrollment, and case management services to vulnerable populations
Legal Aid Society of Orange County - Provides free, holistic legal assistance to
$ 36,086
survivors of domestic violence
WISEPlace - Housing, trauma -informed care and wrap-around services for homeless
$ 38,778
women
Nati's House (dba Neutral Ground) — After school programming and mentoring
$ 45,577
Public Law Center — Consumer & Community Organizations Legal Assistance Project
$ 35,519
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION
At its Regular Meeting on March 28, 2018, the Community Redevelopment and Housing
Commission recommended approval of the nonprofit public services for the Fiscal Year 2018 -
2019 Community Development Block Grant Program to the City Council by a vote of 4:0 (Cano,
Santana absent).
60A-2
Fiscal Year 2018 — 2019 CDBG Program
May 1, 2018
Page 3
DISCUSSION
The City of Santa Ana receives an annual allocation of Community Development Block Grant
(CDBG) Program funds from the United States Department of Housing and Urban Development
(HUD) to improve low to moderate -income neighborhoods, eliminate blight and create a more
stable economic base. These funds may be used for a diverse range of programs including
affordable housing, street improvements, park and public facilities improvements, economic
development, code enforcement and public services. The City's estimated CDBG allocation for
Grant Year (GY) 2018, Fiscal Year (FY) 2018 - 2019, is $5,284,239.
The proposed FY 2018 - 2019 CDBG Program and Funding Plan consists of the Community
Redevelopment and Housing Commission's (CRHC) funding recommendations for nonprofit
public service programs and staffs funding recommendations for Administration and Planning,
Code Enforcement, Economic Development, City Capital Improvements, and Housing. The
CDBG Program and Funding Plan can be summarized in two general categories: Capital
Projects/CDBG Program Funding Plan and Public Services. A summary of the process and
allocation for the FY 2018 - 2019 CDBG Program is provided below for both general categories.
Capital Projects/CDBG Program Funding Plan:
The FY 2018 - 2019 CDBG Program Funding Plan includes the funding allocations for
administration, fair housing, nonprofit public services, code enforcement in low- to moderate -
income areas of the city to address health and safety violations, economic development to
provide small business grants, residential street improvements, park improvements, multi -family
rehabilitation loans, single-family rehabilitation loans, and homebuyer down payment assistance
loans as described in the CDBG FY 2018 — 2019 Program Summaries (Exhibit 1). The CDBG
allowable cap of 20 percent for administration and fair housing services is estimated to be
$1,056,847 for FY 2018 - 2019. Administration is necessary for staffing, compliance, reporting,
fiscal management, and monitoring of the entire program. Fair housing is necessary due to
CDBG requirements that the City affirmatively further fair housing. The programs and projects
have been determined to be of highest priority and need by the Executive Directors of the Parks,
Recreation and Community Services Agency, Public Works Agency, Planning and Building
Agency and Community Development Agency following the City's internal application process
and the competitive public service allocation process described below.
Public Services:
A maximum of 15 percent of CDBG funding, estimated to be $792,635 for FY 2018 - 2019, may
be used for public services. For FY 2018 - 2019, the City is providing the entire estimated public
service allocation to nonprofit organizations for programs with an emphasis on crime prevention,
intervention, and/or suppression for children, youth, and families (Exhibit 2). A new subcategory
of funding was also made available for a Summer Night Lights Pilot Program.
Following approval by City Council on December 19, 2017, the City solicited applications from
nonprofit organizations from January 9, 2018 to February 5, 2018 and improved the application
process by use of an online application system. Marketing of the CDBG application process and
nonprofit outreach efforts included a press release, use of social media (via the City's Facebook
page), e-mails to a nonprofit organization distribution list, mailings to nonprofits, and a dedicated
60A-3
Fiscal Year 2018 — 2019 CDBG Program
May 1, 2018
Page 4
CDBG webpage. In addition, four CDBG training workshops were conducted to inform nonprofit
organizations of the federal and local grant requirements.
A total of 35 applications were received from 29 nonprofit organizations (five nonprofit
organizations submitted multiple applications). Three nonprofit organizations applied for the
Summer Night Lights Pilot Program. The applications were submitted to the Community
Redevelopment and Housing Commissioners for review and rating based on the following criteria:
Criteria
Max Points
Community Need (Max. 35 Points)
• How well does the program align with a City of Santa Ana strategic
plan goal AND meet the requirement of a program with an
emphasis on crime prevention, intervention, and/or suppression
efforts for children, youth and/or families?
15
• If other similar services are provided, how does this application
complement or fill an existing gap?
5
• Does this program serve a Neighborhood Initiative residential area
that has been adversely affected by disinvestment and decline?
10
• Has the applicant demonstrated a need for the proposed program
in Santa Ana?
5
Experience (Max. 20 Points)
• Does the organization have experience in providing the proposed
service?
10
• Does the applicant have experience administering CDBG or any
other Federal rants?
10
Capacity to Provide Service (Max. 25 Points)
• Will the program benefit Santa Ana residents? If the program is
outside of Santa Ana, did the organization explain how Santa Ana
residents will be served?
5
. Does the program have benchmarks for success? Does the
applicant have a means of measuring performance, qualitatively
and quantitatively?
10
• Does the organization have the personnel qualified to provide the
service and administer the rant?
10
Effective & Efficient Use of Funds (Max. 20 Points)
• Does the cost per client appear reasonable when compared to
similar programs?
10
• How many people will be served with CDBG funds; are a majority
from Santa Ana?
5
• Does the application clearly identify how the grant funding will be
spent?
5
TOTAL POINTS
100
60A-4
Fiscal Year 2018 — 2019 CDBG Program
May 1, 2018
Page 5
Representatives from each organization were invited to present their proposed public service
programs for funding consideration at two Community Redevelopment and Housing Commission
public hearings on February 28, 2018 and March 1, 2018 held from 3:OOPM to 7:OOPM on both
days. At the Special CRHC meeting on March 28, 2018, Commissioners finalized the funding
recommendations provided in Exhibit 2. In order to maximize the allocation of limited funds, the
Commissioners decided to reduce their recommended funding levels by 15% for all of the
organizations, and allocate the remainder equally. The Summer Night Lights Pilot Program will be
provided by Neutral Ground. The recommended funding amounts for the nonprofit organizations
equals $792,635, with the exclusion of the Orange County Fair Housing Council, which is
recommended to be funded out of program administration, as in previous years, as permitted by
CDBG regulations.
The Community Redevelopment and Housing Commission, acting with guidance from City staff,
made substantial improvements to the Community Development Block Grant review process this
year for our nonprofit allocation in order to strengthen the process. With close to $800,000 in
grants being dispersed, it was critical for the Commission to allow each organization ample time
to present their programs. Last year the applicants made presentations to the CRHC in City
Council chambers, and were given 3 minutes each to present. This year, the site was moved to
the Ross Annex, which allowed for a more open, informal format, where presenters could more
easily interact with the Commission. Additionally, each organization was allotted 7 minutes each
to present their program to the Commission, versus 3 minutes last year. They were also allowed
to provide a PowerPoint presentation. A five minute follow up was then added to allow
Commissioners the opportunity to ask questions of each organization. The presentations were
held over a two day period after regular business hours from 3:OOPM — 7:OOPM and lasted a total
of nearly 9 hours.
The improvements this year were in addition to the on-line scoring process used for the first time
last year, where each Commissioner applies a score to 12 questions that cover 34 key areas of
each on-line application. After combining the scores from all six Commissioners, extensive
deliberation was held at a follow-up meeting to ensure a balance between funding as many
organizations as possible with sufficient funding to complete their objectives. Following this
extremely thorough review process, the Commission is recommending funding for a total of 17
programs for consideration by City Council.
Next Steps:
The proposed FY 2018 - 2019 CDBG Program and Funding Plan includes the anticipated
allocation from HUD at an estimated level of $5,284,239. Once the City receives the actual CDBG
Program allocation for GY 2018 from HUD, the anticipated allocation amount of $5,284,239 will
be adjusted to the actual amount. This adjustment may be an increase or decrease. If there is an
increase for Capital Projects, staff will: 1) fully fund the City Capital Improvements projects to the
amounts requested; or 2) request new applications from City Departments to fund new projects. If
there is an increase for Public Services, the Commissioners directed staff to: 1) fund the next
three organizations on the list that are scored equally at 82.67% (America On Track, Community
Action Partnership of Orange County, and NeighborWorks of Orange County), if sufficient funds
are available to fund all three organizations; and/or 2) fully fund the requested amounts from the
organizations starting from the top until all of the additional CDBG Public Services funds are
60A-5
Fiscal Year 2018 — 2019 CDBG Program
May 1, 2018
Page 6
exhausted. If there is a decrease in funds, staff will decrease funds equitably and proportionally
for all Capital Projects and Public Services. The increase or decrease in the allocation will be
applied to the agreements with nonprofit organizations and memorandums of understanding with
city departments accordingly.
If the FY 2018 — 2019 CDBG Program and Funding Plan is approved, staff will prepare and
execute memorandums of understanding with various city departments (Exhibit 3) and
agreements with nonprofit organizations (Exhibit 4) for the period of July 1, 2018 through June
30, 2019. All of the projects and programs are eligible for CDBG funding and are in alignment
with the City's Five -Year Consolidated Plan, Strategic Plan and Capital Improvement Program.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's effort to meet:
Goal #1 - Community Safety, Objective #6 (Enhance Public Safety integration,
communications and community outreach), Strategy F (The Santa Ana Police Department
will collaborate with the Orange County Probation Department, Orange County Healthcare
Agency caseworkers, business community, and associated non-profit organizations to
assist in re-entry of recently released offenders into the community);
Goal #2 - Youth, Education, Recreation, Objective #2 (Expand youth programing),
Strategy A (Focus resources on quality youth engagement, enrichment and education
programs through community center, libraries and after-school programs during out-of-
school hours), and Strategy B (Expand the youth sports program so that youth
recreational opportunities are established year-round);
Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #4
(Support neighborhood vitality and livability), Strategy D (Implement new Neighborhood
Improvement Initiatives focusing on residential areas that have been adversely affected by
disinvestment and decline. Program and services from a variety of resources will be
utilized to achieve positive and sustainable improvements), and Objective #6 (Focus
projects and programs on improving the health and wellness of all residents), Strategy C
(Integrate a variety of health and wellness programs into existing programming at each of
the city's community/recreation centers).
FISCAL IMPACT
Funds will be budgeted and available in the Community Development Block Grant account (nos.
13518780, 13518782, and 13518783) upon execution
of a grant agreement between the City and
HUD and adoption of the FY 2018-19 annual budget.
It is anticipated that the CDBG allocation
will be expended as follows:
Anticipated
Grant Year Program Account No.
Expenditure in FY Amount
2018 Administration 13518780 -various
2018-2019 $1,056,847
2018 Housing 13518782 -various
2018-2019 $1,000,000
2018 Projects 13518783 -various
2018-2019 $3,227,392
TOTAL: $5,284,239
Fiscal Year 2018 — 2019 CDBG Program
May 1, 2018
Page 7
Judson��/ �
Acting Executive Director
Community Development Agency
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
Exhibits: 1. CDBG Funding Plan
2. CRHC Public Service Recommendations
3. City Departments Memorandum of Understanding
4. Nonprofit CDBG Agreement
60A-7
.1 m
PROGRAM APPROVED REQUESTED RECOMMENDED
FY 17-18 FY 18-19 FY 18-19
ADMINISTRATION & PLANNING
Administration and Planning
Fair Housing
CODEENFORCEMENT
Community Preservation Code Enforcement
Community Preservation Legal Services
ECONOMIC DEVELOPMENT
New Business Start -Up
CITY CAPITAL IMPROVEMENTS
Park Improvements
Residential Street Improvements
Neighborhood Sponsored Improvements
HOUSING
Single Family Rehab -City
Multi Family Rehab
Homebuyer Down. Payment Assistance
NONPROFIT PUBLIC SERVICES
Delhi Center (Teens Engaged in Learning and Leadership)
Delhi Center (Family Economic Success Initiative)
OC Children's Therapeutic Ads Center
ALBI
The Illumination Foundation
Legal Aid Society of OC (Clean Slate Project)
Project Access, Inc.
Public Law Center
Nat's House dba Neutral Ground (Summer Night Lights)
Taller San Jose Hope Builders
Young Men's Christian Association of Orange County
The Cambodian Family
Community Health Initiative Orange County
Legal Aid Society of OC (Domestic Violence Prevention Project)
WISEPlace
Nat's House (dba Neutral Ground)
Public Law Center
$ 1,056,847 $
1,056,847 $
1,056,847
992,706 .:
992,706
994,606
64,141
64,141
62,241
$ 815,644 $
815,644 $
815,644
765,664
765,664
765,664
49,980
49,980
49,980
$ 72,926 $
72,926 $
72,926
72,926
72,926
72,926
$ 2,159,295
$
1,969,900
$
1,546,187
1,055,338.
BigBrothersBigSistersofOC
875,000
37,924
748,784
1,055,338
-
1,044,900
792,635
748,784
48,619
75,000
50,000
SantaAnaUnidos
48,619
$ 1,030,534
$
1,000,000
$
1,000,000
515,266
5,927,881
650,000
7,041,448
650,000
309,161
$
150,000
$
150,000
206,107
CDBG ANTICIPATED PROGRAM INCOME
200,000
252,000
200,000
$ 792,635
$
2,126,131
$
792,635
60,050
-
74,104
58,487
-
95,976
71,279
70,068
75,000
59,320
56,679
74,250
61,268
77,290
75,000
48,270
42,870
63,568
43,938
-
50,000
37,220
-
50,000
36,795
-
75,000
51,670
-
75,000
48,836
35,038
75,000
38,211
51,321
80,000
43,170
52,390
60,000
38,211
40,809
47,103
36,086
37,099
55,000
38,778
52,557
75,000
45,577
-
50,000
35,519
Amedce on Track
1,056,847
1,056,847
58,740
1,056,847
1,056,847
75,000
-
BigBrothersBigSistersofOC
37,924
45,000
-
Boys& Gids Club of Santa Ana
792,635
61,832
792,635
75,000
-
SantaAnaUnidos
792,635
57,968
2,126,131
-
-
TOTAL
$
5,927,881
$
7,041,448
$ 5,284,239
CDBG ALLOCATION
$
5,284,239
$
5,284,239
$ 5,284,239
CDBG ANTICIPATED PROGRAM INCOME
$
252,000
$
-
$ -
CDBG RE -ALLOCATION -AVAILABLE
$
391,642
$
-
$ -
SURPLUS/(DEFICIT)
ADMINISTRATION CAP 20% OF ALLOCATION
ADMINISTRATION PROPOSED
SURPLUS/(DEFICIT)
PUBLIC SERVICE CAP 15% OF ALLOCATION
PUBLIC SERVICE PROPOSED
SURPLUS/(DEFICIT)
'updated 4/10/2018
(1,757,209)
$
$
1,056,847
1,056,847
$
$
1,056,847
1,056,847
$
$
1,056,847
1,056,847
$
792,635
$
792,635
$
792,635
$
792,635
$
2,126,131
$
792,635
$
-
$
(1,333,496)
$
-
60A-9 EXHIBIT 1
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60A-14 EXHIBIT 1
CRHC Nonprofit Funding Recommendations - CDBG FY 2018-19
CRHC
Organization Name
Applicant
DD
CRHCinIBal
Recommended
15% Reduction
CRHC Final
Recommended
Evaluation
Program
Requested Funding
Funding
Funding
Score
.- Delhi Center-
$ 74;104
$ 68,021.
$ 57,818
$ 58,487
92.50%
Teens Engaged in Learning and Leadership .
_ Delhi Center-
$ 95,976
$ 83,070
$ 70,610
$ 71,279
92.17%
Fam!IV Economic Success Initiative
OC Children's Therapeutic Arts Center-.'
$. 75,000
$ 69,000
$ 58,650
$ 59,320
90.60%
Crime Prevention and InterventionP ram for Willard Middle School& Neighborhood
$ 74,250
$ 71.,292
$` 60,598
$ 61,26B
88.33%ALBI-
Active Learning Believe and Ins ire
The Illumination Foundation-
_
$ 75,000
$ 56,000
$ 47,600
$ 48;270'
88.00%.
Children's Resource Center
Legal Aid Society of Orange County -z
$ 63,568
$ 50,904
$ 43,268
$ 43,938
86:33%
Clean State Project
8600%.
Prefect Access, Inc.- -
$" 50,000
$ 43;00•$
36,550
$ .37,220
Economic Empowerment and Family Su rt Pro ram
85.83%
Public Law Center- -
$ .50,000
$ 42,500
-$ 36,125
$ 36,'795
Affordable Housing& Homelessness Prevention Program
8517°7
Nail's House Neutral Ground-
$ " -75,000
$. 60,000
$ 51,000
$ 51,670
Summer Night Lights
. Taller San Jose Nope Builders -
_
$ 75,000
$ 56,667'$
48,167
$ 48,836
85.00%
Business Applications
Young Men's Christian Association of Orange County-
$.. 75,000
$ 44,167
$ 37,542
$ 38,211
85.00%
YMCA Financial AssistanmP ram -Santa Ana Pro rams
84.33%
The Cambodian Family -
�$: 80,000,
$ 50,000
$ 42,500
$ 43;170.
Plan Ahead Youth.Program
&,17/0.
Community Health Initiative of Orange County-
gram.
$ 60000
$ 44,167-.$
-37,542
$ 38,211
- CommunityHealth AccessP
-
-
8417%
Legal Aid Society of Orange County -o_ ,
$ 47;103
$ 41,667.$
35,417
$ 36,086
Santa Ana Domestic Violence Prevention.Pro'ect.
83.67%,
_
WISEPlace-
$ 55,000
$ 44,833
$ 38,108
$ 38,778
- Steps of independence
83.12%
Nati's House (ohs Neutral Ground) -
$ 75,000
$ 52,833
$ 44,908
$ :45,577.
Neutral Ground
83.00%
i Public Law Center-
$.. 50,000
$ 41,000.'$
34,850
$ 36;519
Consumer & CommunityOrganizations Legal Assistance Project
8267%
America On Track-
$ 75,000
$ -
$ -
$ -
Bn hter Futures for Children ofPnsonem
Community Action Partnership of Orange County-
$ 50,000
$ -
$ -
$ -
8267%
EconomicEmpowerment - Your Mone, Your Goals
8267%
NeighborWorks Orange County-
$ 50,000
$ -
$ -
$ -
Financial Ca bili Project
81.33%
Big Brothers Big Sisters of OC-
$ 45,000
$ -
$ -
$ -
Traditional Community -Based Mentoring Program
80.67°/
Charitable Ventures of Orange County-
$ 58,130
$ -
$ -
$ -
Getting Residents Engaged in Exercise and Nutrition
80.33%
Boys & Girls Club of Santa Ana -
$ 75,000
$ -
$ -
$
College Bound
80.00%
TKO Youth Foundation-
$ 49,000
$ -
$ _
$
TKO BoxingClub
Goodwill Industries of Orange County California-
$ 75,000
$ -
$ -
$ -
7800%
Goodwill Workforce Development
Orange County Educational Ads Academy-
$ 40,000
$ -
$ -
$ .
76.20%
IOds Expanded Day Program Clubs and Junior Conservatory
Charitable Ventures of Orange County,Inc.-
$ 75.000
$ -
$ -
$
76.20%
Project Kinship Summer Night Lights Program
Temple Calvado Community Development Corporation-
$ 75,000
$ -
$ -
$
7617%
Segura Family Financial Empowerment Center
74.83%
Pure Game-
$ 47,000
$ -
$ -
$ -
STAR Sports
7167%
Casa de Is Familia -
$ 72,000
$ -
$ -
$ -
LaTEENa Power[ LP
70.60%
Second Chance Orange County-
$ 60,000
$ -
$ -
$ -
Second Chance Come Prevention in Santa Ana
68.80°/
Veterans Legal Institute -
$ 30,000
$ -
$ -
$ -
Veterans Pro Bono Legal Clinics
67.60%
Charitable Ventures of Orange County-
$ 100000
$ -
$ _
$ -
Cooperaclon Santa Ana
60A-15 EXHIBIT 2
Fair Housing Funding CRHC Recommendations* - CDBG FY 2018-19
CRHC
Evaluation
Organization Name
Applicant
CRHC
Score
Program
Requested Funding
Recommended
Application Funding
87.83%
Orange County Fair Housing Council Inc. -
Santa Ana Fair Housing Education, Counseling 8 Enforcement
$ 66,000.00
$ 62,241
86.50%
Fair Housing Foundation
$ 59,640.00
$ 58,713
an housing services are not suoject to the GUBG Program 15% public service cap.
60A-16 EXHIBIT 2
NOTE: Same agreement will be
used for City departments
approved for the CDBG
MEMORANDUM OF UNDERSTANDING BETWEEN THE 2018-2019 program.
CITY OF SANTA ANA ANDRTY AGENCY USE OF
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
This Memorandum of Understanding is hereby made and entered into this 1 st day of July, 2018,
by and between the City of Santa Ana, a charter city and municipal corporation organized and existing
under the Constitution and laws of the State of California ("CITY"), and CITY AGENG of the City,
("SUBRECIPIENT").
RECITALS:
A. The CITY, as an entitlement recipient and grantee of the United States Department of Housing and
Urban Development ("HUD") Community Development Block Grant "CDBG") Entitlement Program,
Catalog of Federal Domestic Assistance (CFDA) Number 14.218, and ,ederal Award Identification Numbe
FAIN) B_18;MC_OG_050 , desires to enter this Agreement with the SUBRECIPIENT for the expenditure of
CDBG funds in accordance with Title 24, Part 570 of Code of Federal Regulations 24 CFR 570.000, et seq.
("CDBG REGS").
B. CITY has applied for and received CDBG funds from HUD pursuant to Title I of the Housing and
Community Development Act of 1974, Public Law 93-383, as amended ("ACT').
C. The SUBRECIPIENT is a private nonprofit corporation that has been selected by the CITY to
receive CDBG funds and administer such financial assistance; and to provide the services described in
Exhibit A, in accordance with the schedule of performance included therein, hereinafter referred to as "said
program". SUBRECIPIENT represents that it is qualified and willing to operate said program and certifies
that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG
program's National Objectives (24 CFR Part 570.208).
D. SUBRECIPIENT agrees that it will adhere to the performance measurements and outcomes as
indicated on Exhibit A (Schedule of Performance). Failure to follow the measurements and meet the
stated outcomes may constitute breach of contract that could result in termination of this Agreement or
serve as reason for the City to recapture the grant funds awarded to SUBRECIPIENT pursuant to this
Agreement.
WHEREFORE, it is agreed by and between the parties that the foregoing Recitals are a substantive
part of this Agreement and the following terms and conditions are approved and together with all exhibits and
attachments hereto, shall constitute the entire Agreement between the CITY and SUBRECIPIENT:
A. Nonprofit Status - Representations and Warranties.
(a) Authority. SUBRECIPIENT is a duly organized and existing nonprofit corporation in good
standing and authorized to do business under the laws of the State of California. SUBRECIPIENT has
full right, power and lawful authority to accept the funding hereunder and to undertake all obligations as
provided herein and the execution, performance and delivery of this Agreement by SUBRECIPIENT has
been fully authorized by all requisite actions on the part of SUBRECIPIENT.
(b) Experience. SUBRECIPIENT is a qualified provider of the services to be provided
hereunder.
60A-17 EXHIBIT 3
(c) Familiarity With Services Required. By executing this Agreement, SUBRECIPIENT
warrants that (i) it has thoroughly investigated and considered the services to be performed and provided
hereunder, (ii) it has carefully considered how the services should be performed, and (iii) it fully
understands the facilities, difficulties and restrictions attending performance of the services under this
Agreement.
(d) No Conflict. To the best of SUBRECIPIENT'S knowledge, SUBRECIPIENT'S execution,
delivery and performance of its obligations under this Agreement will not constitute a default or a breach
under any contract, agreement or order to which SUBRECIPIENT is a party or by which it is bound.
(e) No Bankruptcy. SUBRECIPIENT is not the subject of any current or threatened bankruptcy
proceeding.
(f) No Pending Legal Proceedings. SUBRECIPIENT is not the subject of a current or
threatened litigation that would or may materially affect SUBRECIPIENT'S performance under this
Agreement.
(g) Application Veracity. All provisions of and information provided in SUBRECIPIENT'S
application for funding submitted to CITY including any exhibits are true and correct in all material
respects.
(h) No Pending Investigation. SUBRECIPIENT is not aware that it is the subject of any current
or threatened criminal or civil action investigation by any public agency, including without limitation a
police agency or prosecuting authority, that would relate to affect performance of the Agreement or
provision of services hereunder.
B. Amount of Grant/Term and Ouarterly Disbursement. The amount granted to
SUBRECIPIENT is00 00 ("CDBG FUNDS"), for the term of July 1,01 through June 30,MIL
Such funds shall be expended by SUBRECIPIENT on or before June 30, 01 . The Term of this
Agreement may be extended by a writing executed by the City Manager, or his or her designee, and the
City Attorney. The CDBG FUNDS shall be disbursed by CITY to SUBRECIPIENT on a quarterly basis
subject to and upon receipt and approval of a complete quarterly activity report from SUBRECIPIENT,
with the final payment subject to the satisfaction of the condition precedent of submittal of complete
reporting information due on or before July 15 of the applicable funding year, as hereinafter more fully
set forth. SUBRECIPIENT shall be obligated to perform such duties as would normally extend beyond
the term, including, but not limited to, obligations with respect to indemnification, audits, reporting,
data retention/reporting, and accounting. Failure to provide any of the required documentation and
reporting will cause CITY to withhold all or a portion of a request for reimbursement, or return the entire
reimbursement package to SUBRECIPIENT, until such documentation and reporting has been received
and approved by CITY.
The CITY reserves the right to reduce the grant application if the CITY's fiscal monitoring indicates
that SUBRECIPIENT's rate of expenditure will result in unspent funds at the end of the program year.
Amendments in the grant allocation will be made after consultation with SUBRECIPIENT.
C. Use of Funds. SUBRECIPIENT agrees to use all federal funds provided by CITY to
SUBRECIPIENT pursuant to this Agreement to operate said program, as set forth in "Exhibit A," attached
hereto and by this reference incorporated herein. SUBRECIPIENT'S failure to perform as required may, in
addition to other remedies set forth in this Agreement, result in readjustment of the amount of funds CITY is
otherwise obligated to pay to SUBRECIPIENT hereunder.
2
60A-18 EXHIBIT 3
D. Allowable Costs. SUBRECIPIENT agrees to complete said program on or before June 30,
2019, and to use said funds to pay for necessary and reasonable costs allowable under the federal law and
regulations to operate said program. Said amounts shall include, but not be limited to, wages, administrative
costs, and employee benefits comparable to other similarly situated employees, and indirect costs. Other
allowable program costs are detailed in the budget, as set forth in "Exhibit B;' attached hereto and by this
reference incorporated herein. SUBRECIPIENT shall use all income received from said funds only for the
same purposes for which said funds may be expended pursuant to the terms and conditions of this
Agreement. SUBRECIPIENT has the ability to adjust line item amounts in the budget with the written
approval of the CITY's Executive Director of the Community Development Agency, or designee, so long as
the total budget amount does not increase.
Pursuant to 2 CFR §200.331(a)(4), the Indirect Cost Rate for the SUBRECIPIENT's award shall
be an approved federally recognized indirect cost rate negotiated between the SUBRECIPIENT and the
Federal government, or, if no such rate exists, the de minimis indirect cost rate as defined in 2 CFR
§200.414(b) Indirect (F&A) costs.
For this agreement, the de minimis indirect cost rate of M will apply.
E. Licensing. SUBRECIPIENT agrees to obtain and maintain all required licenses,
registrations, accreditation and inspections from all agencies governing its operations. SUBRECIPIENT
shall ensure that its staff shall also obtain and maintain all required licenses, registrations, accreditation and
inspections from all agencies governing SUBRECIPIENT's operations hereunder. Such licensing
requirements include obtaining a City business license, as applicable.
F. Zoning. SUBRECIPIENT agrees that any facility/property used in furtherance of said
program shall be specifically zoned and permitted for such use(s) and activity(ies). Should SUBRECIPIENT
fail to have the required land entitlement and/or permits, thus violating any local, state or federal rules and
regulations relating thereto, SUBRECIPIENT shall immediately make good -faith efforts to gain compliance
with local, state or federal rules and regulations following written notification of said violation(s) from the
CITY or other authorized citing agency. SUBRECIPIENT shall notify CITY immediately of any pending
violations. Failure to notify CITY of pending violations, or to remedy such known violation(s) shall result in
termination of grant funding hereunder. SUBRECIPIENT must make all corrections required to bring the
facility/property into compliance with the law within sixty (60) days of notification of the violation(s); failure
to gain compliance within such time shall result in termination of grant funding hereunder.
G. Separation of Accounts. All funds received by SUBRECIPIENT from CITY pursuant to this
Agreement shall be maintained in an account in a federally insured banking or savings and loan institution
with record keeping of such accounts maintained pursuant to applicable 2 CFR 200.302 requirements.
SUBRECIPIENT is not required to maintain separate depository accounts for CDBG FUNDS; provided
however, the SUBRECIPIENT must be able to account for receipt, obligation and expenditure of CDBG
FUNDS pursuant to applicable 2 CFR 200.302 requirements.
H. Audit Report Requirements. SUBRECIPIENT agrees that if SUBRECIPIENT expends
Seven Hundred Fifty Thousand Dollars ($750,000) or more in federal funds, SUBRECIPIENT shall have an
annual audit conducted by a certified public accountant in accordance with the standards as set forth and
published by the United States Office of Management and Budget. SUBRECIPIENT shall provide CITY
with a copy of said audit by April 1 of the year following the program year in which this Agreement is
executed.
60A-19 EXHIBIT 3
I. Record Keel2inWReporting. SUBRECIPIENT shall keep and maintain complete and
adequate records and reports on program participants to determine their initial and continuing eligibility for
the program services being provided to assist CITY in meeting and maintaining its record keeping
responsibilities under the CDBG REGS, including the following:
(1) Records
a. Documentation evidencing program income requirements in conformity with 24 CFR
570.504(b((2)(i), (ii) and 24 CFR 570.503(b)(3) and 24 CFR 570.208(a)(2)(B) of the income level
of persons and/or families participating in or benefiting by the SUBRECIPIENT program.
b. Documentation of the number of persons and/or families participating in or benefiting
by the SUBRECIPIENT program.
c. Household information shall include number of persons, identification of head of
household, race/ethnicity, and income verification of all household members ages 18 and over.
d. Documentation of all CDBG FUNDS received from CITY.
e. Documentation of expenses as identified in the Budget Proposal, including evidence of
incurring the expense, invoices for goods or services, copies of any and all contracts or
documentation pertaining to costs for subcontractors, plus all other invoices and proof of payment for
which CDBG FUNDS were expended, and any payments therefor.
f. Any such other related records as CITY shall reasonably require or as required to be
maintained pursuant to the CDBG REGS.
(2) Reports
a. Payment Request. Concurrently with the submittal of each quarterly report, on or before
the 15th day of October, January, April and July, SUBRECIPIENT shall submit both: an original
invoice/request for reimbursement and true copies of invoices, receipts, canceled checks, bank
statements, credit card statements, procurement documentation for goods or services, timesheets,
payroll records, benefit statements, agreements, contracts or documentation pertaining to costs for
subcontractors, and/or other documentation supporting and evidencing how the CDBG FUNDS
have been expended during the applicable quarter.
b. Quarterly Progress Report. SUBRECIPIENT agrees to keep records of all ethnic and
racial statistics of persons and families benefited by SUBRECIPIENT in the performance of its
obligations under this Agreement, including, but not limited to, the number of low and moderate
income persons and households assisted in accordance with federal income limits, the number of
female heads of households assisted, new program information and year-to-date program
statistics on expenditures, caseload and activities. Failure to provide any of the required
documentation and reporting will cause CITY to withhold all or a portion of a request for
reimbursement, or return the entire reimbursement package to SUBRECIPIENT, until such
documentation and reporting has been received and approved by CITY.
J. Access to Records. CITY and the United States Government and their representatives or
auditors shall have access for purposes of monitoring, auditing, and examining SUBRECIPIENT's
activities and performance, to books, documents and papers, and the right to examine records of
SUBRECIPIENT's subcontractors, bookkeepers and accountants, employees and participants in regard to
4
60A-20 EXHIBIT 3
said program. CITY and the United States Government and their representatives or auditors shall also
schedule on-site monitoring at their discretion. Monitoring activities may also include, but are not limited
to, questioning employees and participants in said program and entering any premises or any site in which
any of the services or activities funded hereunder is conducted or in which any of the records of
SUBRECIPIENT are kept. Nothing herein shall be construed to require access to any privileged or
confidential information as set forth in federal or state law.
K. Location of Records/Required Length of Record Keeping. All accounting records, reports,
and evidence pertaining to all costs, expenses and the CDBG FUNDS of SUBRECIPIENT and all
documents related to this Agreement shall be maintained and kept available at SUBRECIPIENT'S office
or place of business for the duration of the Agreement and thereafter for five (5) years from the date of
final payment under this Agreement. Records which relate to (a) complaints, claims, administrative
proceedings or litigation arising out of the performance of this Agreement, or (b) costs and expenses of
this Agreement to which CITY or any other governmental agency takes exception, shall be retained
beyond the five (5) years until complete resolution or disposition of such appeals, litigation claims, or
exceptions. In the event SUBRECIPIENT does not make the above -referenced documents available within
the city of Santa Ana, California, SUBRECIPIENT agrees to pay all necessary and reasonable expenses
incurred by CITY in conducting any audit at the location where said records and books of account are
maintained.
L. Compliance with Law/Program Income. SUBRECIPIENT acknowledges that the funds
being provided by CITY for said program are received by CITY pursuant to the ACT as amended and that
expenditures of these funds shall be in accordance with the ACT and all pertinent regulations issued by
agencies of the federal government, including, but not limited to, all regulations found at Title 24 of the Code
of Federal Regulations. Program income received by SUBRECIPIENT shall be returned to CITY unless
otherwise provided for in this Agreement. SUBRECIPIENT agrees to comply fully with all federal, state and
local laws and court orders applicable to its operation whether or not referred to in this Agreement.
M. Debarment. To protect the public interest and ensure the integrity of Federal programs,
CITY may only conduct business with responsible persons and may not make any award or permit any
award to any party which is debarred or suspended or is otherwise excluded from or ineligible for
participation in Federal assistance programs under Executive Order 12549, "Debarment and Suspension".
See also 24 CFR 570.609. SUBRECIPIENT must review and sign Exhibit C "Debarment", which is
attached hereto and incorporated herein by this reference. SUBRECIPIENT shall be in good standing,
without suspension by the California Secretary of State, Franchise Tax Board and Internal Revenue Service.
Any change in the corporate status or suspension of SUBRECIPIENT shall be reported immediately to
CITY.
N. Confidentiality. Without prejudice to any other provisions of this Agreement,
SUBRECIPIENT shall, where applicable, maintain the confidential nature of information provided to it
concerning participants in accordance with the requirements of federal and state law. However,
SUBRECIPIENT shall submit to CITY and or HUD or its representatives, all records requested, including
audit, examinations, monitoring and verifications of reports submitted by SUBRECIPIENT, costs incurred
and services rendered hereunder.
O. Independent Contractor. SUBRECIPIENT agrees that the performance of obligations
hereunder is rendered in its capacity as an independent contractor and that it is in no way an agency of CITY.
P. Violation of Terms and Conditions. SUBRECIPIENT agrees that if SUBRECIPIENT
violates any of the terms and conditions of this Agreement or any prior Agreement whereby CDBG funds
were received by SUBRECIPIENT, or if SUBRECIPIENT reports inaccurately, or if on audit there is a
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60A-21 EXHIBIT 3
disallowance of certain expenditures, SUBRECIPIENT agrees to remedy the acts or omissions causing the
disallowance and repay CITY all amounts spent in violation thereof. If SUBRECIPIENT engaged in
fraudulent activity to obtain and/or justify expenditure of the CDBG funds granted hereunder,
SUBRECIPIENT shall be required to reimburse the CITY of all such funds that were obtained and/or spent
under fraudulent circumstances.
Q. Equipment. SUBRECIPIENT agrees to maintain a record for each item of non -expendable
personal property acquired under the terms of this Agreement. Said record shall be made available to CITY
upon request. The term "non -expendable personal property" shall include leased and purchased equipment.
R. Prohibited Use. SUBRECIPIENT hereby certifies and agrees that it will not use funds
provided through this Agreement to pay for entertainment, meals or gifts, or other prohibited uses.
S. Lobbvine. SUBRECIPIENT certifies that it will comply with federal law (31 U.S.C. 1352)
and regulations found at 24 CFR Part 87, which provide that no appropriated funds may be expended by the
recipient of a federal contract, grant, loan or cooperative agreement to pay any person for influencing or
attempting to influence an officer or employee of any agency, Member of Congress, or an officer or
employee of a Member of Congress in connection with awarding of any federal contract, the making of any
federal grant or loan, entering into any cooperative agreement and the extension, renewal, amendment or
modification of any federal contract, grant, loan or cooperative agreement. SUBRECIPIENT shall sign a
certification to that effect in a form as set forth in 'Exhibit D," attached hereto and by this reference
incorporated herein. SUBRECIPIENT shall submit said signed certification to CITY prior to performing any
of its obligations under this Agreement and prior to any obligation arising on the part of CITY to pay any
sums to SUBRECIPIENT under the terms and conditions of this Agreement.
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, 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, the undersigned shall complete and submit a
"Disclosure Form to Report Lobbying," in accordance with its instructions (Exhibit D).
SUBRECIPIENT shall require that the language of this certification be included in the
award documents for all sub -awards at all tiers (including subcontractors, sub -grants, and contracts under
grants, loans, and cooperative agreements), and agrees to take all actions necessary to ensure that all
subrecipients shall similarly certify and disclose accordingly.
T. Financial Interest. SUBRECIPIENT agrees that except for the use of CDBG funds to pay
salaries and other related administrative or personnel costs, no persons who exercise or have exercised
any function with respect to CDBG activities assisted under the terms of this Agreement, or who are in a
position to participate in a decision-making process or gain inside information with regard to such
activities, may obtain a financial interest or benefit from a CDBG-assisted activity of SUBRECIPIENT,
either for themselves or those with whom they have family or business ties, during their tenure or for one
year thereafter. This prohibition applies to any person who is an employee, agent, consultant, officer, or
elected or appointed official of CITY, or of any designated public agency, or the SUBRECIPIENT.
U. Labor Standards. The SUBRECIPIENT agrees to comply with the requirements of the
Secretary of Labor in accordance with the Davis -Bacon Act as amended, the provisions of Contract Work
Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable Federal, state and local
laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this
Agreement. The SUBRECIPIENT agrees to comply with the Copeland Anti -Kick Back Act (18 U.S.C.
874 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR Part 5. The
60A-22 EXHIBIT 3
SUBRECIPIENT shall maintain documentation that demonstrates compliance with hour and wage
requirements of this part. Such documentation shall be made available to the CITY for review upon
request.
SUBRECIPIENT agrees that, except with respect to the rehabilitation or construction of
residential property containing less than eight (8) units, all contractors engaged under contracts in excess
of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance
provided under this contract, shall comply with Federal requirements adopted by the CITY pertaining to
such contracts and with the applicable requirements of the regulations of the Department of Labor, under
29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to
journey workers; provided that, if wage rates higher than those required under the regulations are imposed
by state or local law, nothing hereunder is intended to relieve the SUBRECIPIENT of its obligation, if
any, to require payment of the higher wage. The SUBRECIPIENT shall cause or require to be inserted in
full, in all such contracts subject to such regulations, provisions meeting the requirements of this
paragraph.
V. Section 3 of the Housin¢ and Urban Development Act of 1968. SUBRECIPIENT will make
every effort to provide training opportunities for low -and moderate -income persons residing within the
community where the construction project is located and contracts awarded to local businesses therein to the
greatest extent feasible as required under the provisions of Section 3 of the Housing and Urban Development
Act of 1968, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder
prior to the execution of this Agreement. Compliance with the foregoing requirements shall be a condition of
the federal financial assistance provided under this Agreement and binding on the SUBRECIPIENT. Failure
to fulfill these requirements shall subject the SUBRECIPIENT, its successors and designees, to those
sanctions specified by the Agreement through which federal assistance is provided. The SUBRECIPIENT
certifies and agrees that no contractual or other disability exists which would prevent compliance with these
requirements. SUBRECIPIENT shall make every effort to ensure that all projects funded wholly or in part
by CDBG funds shall provide equal employment opportunities for minorities and women.
W. Drug Free Workplace. SUBRECIPIENT agrees to provide a drug-free work place and to
execute a certification as set forth in "Exhibit E" attached hereto and incorporated herein by this reference.
X. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards. The following requirements and standards must be complied with: 2 CFR Part 200 et al.
SUBRECIPIENT shall procure all materials, property, or services in accordance with the requirements of
2 CFR 200.318-326.
Y. Subpart K of 24 CFR 570. SUBRECIPIENT will carry out its activities in compliance with the
requirements of Subpart K of 24 CFR 570, however SUBRECIPIENT does not assume the CITY's
environmental responsibilities or the responsibility for initiating the environmental review process under 24
CFR Part 52.
Z. Women- and Minority -Owned Businesses (W/MBE) SUBRECIPIENT will use its best
efforts to afford small businesses, minority business enterprises, and women's business enterprises the
maximum practicable opportunity to participate in the performance of this Agreement in accordance with
the requirements of 2 CFR 200.321 "Contracting with small and minority businesses, women's business
enterprises, and labor surplus area firms". As used in this Agreement, the term "small business" means a
business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C.
632), and "minority and women's business enterprise" means a business at least fifty-one percent (51%)
owned and controlled by minority group members or women. For the purpose of this definition,
"minority group members" are African-Americans, Spanish-speaking, Spanish surnamed or Spanish -
60A -23 EXHIBIT 3
heritage Americans, Asian -Americans, and American Indians. SUBRECIPIENT may rely on written
representations by businesses regarding their status as minority and female business enterprises in lieu of
an independent investigation.
II. CITY'S OBLIGATIONS
A. Payment of Funds. On July 1,01 , the CITY was allocated 5 285 26 for fiscal year 01
-0l from the United States Department of Housing and Urban Development ("HUD") Community
Development Block Grant ("CDBG") Entitlement Program. CITY agrees to pay to SUBRECIPIENT when,
if and to the extent federal funds are received a sum not to exceed Dollars $00 00 ) for
SUBRECIPIENT'S performance in accordance with the Budget attached hereto as "Exhibit B" during the
period of this Agreement. Payments shall be made to SUBRECIPIENT through the submission of
invoices/reimbursement requests.
CITY shall pay such invoices/reimbursement requests within thirty (30) days after receipt thereof
provided CITY is satisfied that such expenses have been incurred and documented within the scope and
provisions of this Agreement and that SUBRECIPIENT is in compliance with the terms and conditions of
this Agreement. Failure to provide any of the required documentation and reporting will cause CITY to
withhold all or a portion of a request for reimbursement, or return the entire reimbursement package to
SUBRECIPIENT, until such documentation and reporting has been received and approved by CITY.
Documentation may include, but is not limited to true copies of invoices, receipts, canceled checks, bank
statements, credit card statements, procurement documentation for goods or services, timesheets, payroll
records, benefit statements, agreements, contracts or documentation pertaining to costs for subcontractors,
and/or other documentation supporting and evidencing how the CDBG FUNDS have been expended
during the applicable quarter.
B. Audit of Account. CITY shall include an audit of the account maintained by
SUBRECIPIENT in CITY's annual audit of all CDBG FUNDS in accordance with Title 24 of the Code of
Federal Regulations and other applicable federal laws and regulations.
C. Common Rule: Pursuant to 2 CFR 200.328(a), the CITY manages the day-to-day operations of
each grant and subgrant supported activities. CITY staff has detailed knowledge of the grant program
requirements and monitors grant and subgrant supported activities to assure compliance with Federal
requirements. Such monitoring covers each program, function and activity and performance goals are
reviewed periodically.
D. Environmental Review: In accordance with 24 CFR 58, the CITY is responsible for
undertaking environmental review and maintaining environmental review records for each applicable
project.
E. Performance Monitoring: CITY shall monitor the performance of SUBRECIPIENT against
goals and performance standards required herein. The SUBRECIPIENT shall be responsible to
accomplish the levels of performance as set forth in Exhibit A and report such measures quarterly to the
CITY. If the SUBRECIPIENT estimates such goals will not be met, the SUBRECIPIENT is to contact
the CITY, at which time the CITY will determine if any adjustments to the grant award is appropriate.
Substandard performance as determined by the CITY will constitute non-compliance with this
Agreement. Should the CITY determine that the SUBRECIPIENT has not performed its obligations as
stated in this contract in a satisfactory manner, or if the CITY determines that insufficient supporting
information has been submitted, the CITY shall notify the SUBRECIPIENT in writing of its
determination specifying in full detail the objections which it has to the SUBRECIPIENT's performance.
If action to correct such substandard performance is not taken by the SUBRECIPIENT after being
60A-24 EXHIBIT 3
notified by the CITY, within a reasonable period of time as stipulated in the written notification, contract
suspension or termination procedures will be initiated.
III. NONDISCRIMINATION
A. SUBRECIPIENT agrees to comply with Executive Order 11246 which requires that during the
performance of this Agreement, SUBRECIPIENT agrees not to discriminate against any employee or
applicant for employment because of race, religion, sex, color or national origin. Such action shall include,
but not be limited to the following: employment, upgrading, demotion, or transfer, rates of pay or other forms
of compensation, and selection for training, including apprenticeship. SUBRECIPIENT agrees to post in
conspicuous places, available to employees and applicants for employment, notices to be provided by the
SUBRECIPIENT setting forth the provisions of this nondiscrimination clause.
B. SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 which indicates
that no person shall, on the ground of race, color or national origin, be excluded from participation in, be
denied the benefits of, or be subject to discrimination under any program of activity receiving federal
financial assistance.
C. No person shall, on the grounds of race, sex, creed, color, religion, marital status, national origin,
age, sexual orientation, or physical or mental handicap be excluded from participation in, be refused the
benefits of, or otherwise be subject to discrimination in any activities, programs or employment supported by
this Agreement. SUBRECIPIENT is prohibited from discrimination on the basis of age or with respect to an
otherwise qualified handicapped person as provided for under Section 109 of the Housing and Community
Development Act of 1974, as amended.
D. SUBRECIPIENT agrees to comply with the Age Discrimination Act of 1975 which requires that
during the performance of this Agreement, SUBRECIPIENT agrees not to discriminate against any employee
or applicant for employment because of age. Such action shall include, but not be limited to the following:
employment upgrading, demotion, or transfer, rates of pay or other forms of compensation, and selection for
training, including apprenticeship. SUBRECIPIENT agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided by the SUBRECIPIENT setting forth the
provisions of this age discrimination clause.
E. SUBRECIPIENT agrees to comply with Section 504 of the Rehabilitation Act of 1973 which
requires that no otherwise qualified individual with a disability in the United States, shall, solely by reason of
his or her disability, be excluded from the participation in, be denied the benefits of, or be subjected to
discrimination under any program or activity receiving federal financial assistance or under any program or
activity conducted by any executive agency or by the United States Postal Service.
IV. CONFLICT OF INTEREST
Pursuant to the conflict of interest requirements set forth in 24 CFR 570.611 and 2 CFR 200.112,
SUBRECIPIENT certifies that no member, officer, employee, agent or assignee of CITY having direct or
indirect control of any CDBG monies granted to the CITY, inclusive of the subject CDBG FUNDS, shall
serve as an officer of SUBRECIPIENT. Further, any conflict or potential conflict of interest of any officer of
SUBRECIPIENT shall be fully disclosed in writing prior to the execution of this Agreement and said writing
shall be attached and deemed fully incorporated as a part hereof. Notice shall be sent by SUBRECIPIENT to
CITY regarding any changes or modifications to its board of directors and list of officers.
9
60A-25 EXHIBIT 3
V. SPECIAL CERTIFICATION FOR RELIGIOUS ENTITIES
If SUBRECIPIENT is a religious entity, SUBRECIPIENT hereby agrees that in connection with the
provision of the services SUBRECIPIENT shall provide with CDBG funds, in accordance with 24 CFR
570.2000:
A. SUBRECIPIENT shall not discriminate against any employee or applicant for employment on
the basis of religion and shall not limit employment or give preference in employment to persons on the basis
of religion.
B. SUBRECIPIENT shall not discriminate against any person applying for the services
SUBRECIPIENT agrees to provide under the terms of this Agreement on the basis of religion and shall not
limit such services or give preference to applicants for such services on the basis of religion.
C. SUBRECIPIENT shall NOT provide religious instruction or counseling, conduct any religious
worship or services, or engage in any religious proselytizing, or exert any religious influence in the provision
of the services in said program. The parties agree that this covenant is intended to and shall be construed for
the limited purpose of assuring compliance with respect to the use of CITY funds by SUBRECIPIENT with
applicable constitutional limitations respecting the establishment of religion as set forth in the establishment
clause under the First Amendment of the United States Constitution and Article I, Section 4 of the California
Constitution, and is not in any manner intended to restrict other activities of SUBRECIPIENT.
D. The portion of a facility used to provide public services assisted in whole or in part under this
Agreement shall contain no sectarian or religious symbols.
E. Where the services to be provided under said program are rendered on property owned by the
primarily religious entity SUBRECIPIENT, CDBG funds may also be used for minor repairs to such property
which are directly related to the cost of rendering the services under said program, where the cost constitutes
in dollar terms only an incidental portion of the CDBG expenditure for rendering the services under said
program.
VI. PROHIBITION OF NEPOTISM
SUBRECIPIENT agrees not to hire or permit the hiring of any person to fill a position funded
through this Agreement if a member of that person's immediate family is employed in an administrative
capacity by SUBRECIPIENT. For the purposes of this section, the term "immediate family" means spouse,
child, mother, father, brother, sister, brother-in-law, sister-in-law, father-in-law, mother-in-law, son-in-law,
daughter-in-law, aunt, uncle, niece, nephew, stepparent and stepchild. The term "administrative capacity"
means having selection, hiring, supervisor or management responsibilities.
VII. NOTICES
Notices to the parties shall, unless otherwise requested in writing, be sent by U.S. Mail, postage
prepaid, and addressed as follows:
TO CITY: City of Santa Ana
Community Development Agency (M-25)
20 Civic Center Plaza
P.O. Box 1988
Santa Ana, California 92702-1988
10
60A=26 EXHIBIT 3
TO SUBRECIPIENT: + rganzation Contac
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VIII. ASSIGNABILITY
None of the duties of, or work to be performed by, SUBRECIPIENT under this Agreement shall be
subcontracted or assigned to any agency, consultant, or person without the prior written consent of CITY.
SUBRECIPIENT must submit all subcontracts and other agreements that relate to this Agreement to CITY.
No subcontract or assignment shall terminate or alter the legal obligations of SUBRECIPIENT pursuant to
this Agreement.
IX. HOLD HARMLESS
SUBRECIPIENT shall indemnify, defend and save harmless CITY, its officers, employees, agents,
representatives and volunteers from and against any and all damages to or for loss of use of property and for
injuries to or death of any person or persons, including property and employees or agents of CITY, and shall
defend, indemnify and save harmless CITY, its officers, employees, agents, representatives and volunteers
from and against any and all claims, demands, suits, actions or proceedings of any kind or nature, including,
but not by way of limitation, workers compensation claims and including attorney fees and reasonable
expenses for litigation or settlement, resulting from or arising out of the negligent or wrongful acts, errors or
omissions of SUBRECIPIENT, its officers, directors, employees, agents, subcontractors and suppliers arising
out of SUBRECIPIENT's performance of this Agreement.
X. INSURANCE
1. Commercial General Liability. SUBRECIPIENT agrees to obtain and keep in force
during the term of this Agreement a policy of comprehensive commercial public liability insurance
insuring the CITY, and SUBRECIPIENT against any liability for accident, injury or death arising out of
or in consequence of this Agreement. Such insurance shall be in an amount not less than One Million
Dollars ($1,000,000.00) for any injury to or death of any person or persons in any single accident or
occurrence. Said policy of comprehensive liability insurance shall be endorsed to provide to CITY at
least thirty (30) days written notice prior to cancellation; name CITY, its officers, agents, employees, and
volunteers, additional insured; and state that such coverage is primary to any other coverage or self-
insurance and CITY. Governmental entities may provide proof of self-insurance.
(a) Such insurance shall: (1) name the City of Santa Ana, its officers, agents,
representatives, employees and volunteers as additional insured's; (2) be primary with respect to
insurance or self-insurance programs maintained by the CITY; (3) contain standard separation of
insured's provisions; and (4) give to CITY prompt and timely notice of claim made or suit instituted
arising out of SUBRECIPIENT's operations hereunder.
(b) SUBRECIPIENT shall: (1) prior to exercising any right under this
Agreement, furnish properly executed certificates of insurance and additional insured endorsement to the
CITY which shall clearly evidence all coverages required above; (2) provide that such insurance shall not
be materially changed or terminated except on 30 days prior written notice to the CITY; (3) maintain such
insurance for the period covered by this Agreement; and (4) replace such certificates for policies expiring
prior to the expiration of this Agreement
11
60A-27 EXHIBIT 3
2. Automobile Liability Coverage SUBRECIPIENT shall also obtain and maintain, during
the effective period of this Agreement, broad form automobile liability coverage with a $1,000,000 limit
unless reduced by CITY, which applies to both owned/leased and non -owned automobiles used by
SUBRECIPIENT employees or participants in performance of this Agreement, or, in the event that
SUBRECIPIENT will not utilize such owned/leased automobiles but intends to require employees,
participants or other agents to utilize their own automobiles in the performance of this Agreement,
SUBRECIPIENT shall secure and maintain on file from all such employees, participants, or agents as
self -certification of automobile insurance coverage. Governmental entities may provide proof of self-
insurance.
3. Workers' Compensation. If SUBRECIPIENT is an "employer", as set forth in California
Labor Code Section 3300 et seq., or utilizes participants as "employees," as set forth in California Labor
Code Section 3350 et seq., SUBRECIPIENT shall obtain and keep in force during the term of this
Agreement full Workers' Compensation insurance coverage for injuries suffered by participants. Said
insurance policy shall guarantee CITY at least thirty (30) days written notice of cancellation or
modification.
4. Equipment Coverage. SUBRECIPIENT shall purchase a policy or policies of insurance
covering loss or damage to any and all Equipment provided to or purchased by SUBRECIPIENT in
accordance with this Agreement. Said insurance shall be in the amount of the full replacement value
thereof, providing protection against the classification of fire, extended coverage, vandalism, malicious
mischief, theft, and special extended perils. Governmental entities may substitute a certificate of self-
insurance.
5. Proof of Insurance. Certificates and endorsements must be submitted and approved by
CITY prior to any work under this Agreement. SUBRECIPIENT understands that CITY will make no
payments under this Agreement until the required certificates and endorsements have been approved by
CITY.
XI. REVERSION OF ASSETS
A. Upon the expiration of this Agreement, SUBRECIPIENT shall transfer to CITY any CDBG
funds on hand at the time of the expiration of this Agreement as well as any accounts receivable attributable
to the use of CDBG funds. [24 CFR 570.503(b)(7)]
B. Any real property under SUBRECIPIENT's control that was acquired or improved in whole or in
part with CDBG funds in excess of $25,000.00 must either be:
1. Used, where CITY has given written approval, to meet one of the national
objectives stated in 24 CFR 570.208 until five (5) years after expiration of this Agreement, or for such longer
period of time as determined to be appropriate by CITY; or
2. If not used in accordance with subparagraph I above, SUBRECIPIENT shall pay to
CITY an amount equal to the current fair market value of the property less any portion of the value
attributable to the expenditure of non-CDBG funds for acquisition of, or improvement to, the property. Such
payment is program income to CITY.
C. Subject to the obligations set forth herein, title to equipment acquired under the terms of this
Agreement will vest upon acquisition in SUBRECIPIENT. When said equipment which has been acquired
in accordance with this Agreement and all applicable regulations is no longer needed for said program,
disposition of said equipment will be made as follows:
12
60A-28 EXHIBIT 3
1. Items of equipment with a current per unit fair market value of less than $5,000.00
may be retained, sold or otherwise disposed of with no further obligation to CITY.
2. Items of equipment with a current fair market per unit value of $5,000.00 or more
may be retained or sold and CITY shall have the right to an amount calculated by multiplying the current
market value or proceeds from the sale by CITY's share of federal funds used to acquire the equipment, in
accordance with 2 CFR 200.313(e)(2).
D. SUBRECIPIENT hereby agrees, upon the demand of CITY, to execute, acknowledge and
deliver, or cause any person or entity who may have any claim to rights hereunder or under any document,
instrument or agreement executed in furtherance of the services and activities to be performed hereunder, to
execute, acknowledge and deliver, to CITY assignment(s), quit claim deed(s) or such other and further
instruments, documents and agreements as may be necessary, in the sole and absolute discretion of CITY, to
vest in CITY all of SUBRECIPIENT's right, title and interest (if any it may have) in and to CITY, CDBG or
other federal, state and/or local accounts or program funds or allocation of funds to which CITY is or may be
entitled, either for its own account or as fiduciary or trustee for others, which were obtained for the purpose of
the performance of this Agreement or any previous agreements relating to the same subject matter or
activities as this Agreement, together with any instruments, loans, grants or advances by SUBRECIPIENT on
behalf of CITY, in furtherance of the activities hereunder or thereof.
SUBRECIPIENT's obligations and responsibilities set forth in this paragraph "XI. REVERSION OF
ASSETS," and in paragraph "XII. TERMINATION" and other requirements pertaining to program income
shall not be affected by the termination of this Agreement and shall survive the date of termination of this
Agreement for such period of time as CITY and/or HUD deems necessary for the responsibilities, duties and
obligations to be performed and completed to the satisfaction of CITY and HUD.
: U1lWI MC130
A. This Agreement may be terminated on thirty (30) days' written notice by either party. In the
event of such termination, SUBRECIPIENT shall only be entitled to reimbursement for approved expenses
incurred to the effective date of termination.
B. This Agreement may be suspended or terminated by CITY upon five (5) days' written notice for
violation by SUBRECIPIENT of Federal Laws governing the use of Community Development Block Grant
Funds. In the event of such suspension or termination, SUBRECIPIENT shall only be entitled to
reimbursement for approved expenses incurred up to the effective date of suspension or termination.
C. Pursuant to 2 CFR 200.340, in the event SUBRECIPIENT defaults by failing to fulfill all or any
of its obligations hereunder, CITY may declare a default and termination of this Agreement by written notice
to SUBRECIPIENT, which default and termination shall be effective on a date stated in the notice which is to
be not less than ten (10) days after certified mailing or personal service of such notice, unless such default is
cured before the effective date of termination stated in such notice. If terminated for cause, CITY shall be
relieved of further liability or responsibility under this Agreement, or as a result of the termination thereof,
including the payment of money, except for payment for approved expenses incurred for services
satisfactorily and timely performed prior to the mailing or service of the notice of termination, and except for
reimbursement of (1) any payments made for services not subsequently performed in a timely and
satisfactory manner, and (2) costs incurred by CITY in obtaining substitute performance.
D. The grant of funds under this Agreement may be terminated for convenience by either the CITY
or SUBRECIPIENT, in whole or in part, by setting forth the reasons for such termination, the effective date,
13
60A-29 EXHIBIT 3
and, in the case of portion termination, their portion to b terminated, however, if in the case of a partial
termination, the CITY determines that the remaining portion of the award will not accomplish the purpose for
with the award was made, the CITY may terminate the award in its entirety.
E. The grant of funds under this Agreement may be terminated due to the non-performance of
SUBRECIPIENT and/or failure of SUBRECIPENT to perform the work described in Exhibits A and B or
failure to meet the performance standards and program goals set forth therein.
F. In the event this Agreement is terminated as set forth in subparagraphs XII.A. through XII.E.,
inclusive, SUBRECIPIENT agrees to immediately return to CITY upon CITY's demand and prior to any
adjudication of SUBRECIPIENT's rights, any and all funds not used, and to comply with paragraph "XI.
REVERSION OF ASSETS" of this Agreement.
XIII. LIMITATION OF FUNDS
The United States of America, through HUD, may in the future place programmatic or fiscal
limitations on the use of CDBG funds which limitations are not presently anticipated. Accordingly, 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, CITY may, in its sole and absolute discretion, reduce the budget
of this Agreement as a whole or as to costs category, may limit the rate of SUBRECIPIENT's authority to
commit and spend funds, or may restrict SUBRECIPIENT's use of both its uncommitted and its unspent
funds. Where HUD has directed or requested CITY to implement a reduction in funding, in whole or as to a
cost category, with respect to funding for this Agreement, CITY's City Manager or delegate is authorized to
act for CITY in implementing and effecting such a reduction and in revising, modifying, or amending the
Agreement for such purposes. If such a reduction in funding occurs, SUBRECIPIENT shall be permitted to
de -scope accordingly. Where CITY has reasonable grounds to question SUBRECIPIENT's fiscal
accountability, financial soundness, or compliance with this Agreement, CITY may suspend the operation of
this Agreement for up to sixty (60) days upon five (5) days written notice to SUBRECIPIENT of its intention
to so act, pending an audit or other resolution of such questions. In no event, however, shall any revisions
made by CITY affect expenditures and legally binding commitments made by 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.
XIV. EXCLUSIVITY AND AMENDMENT OF AGREEMENT
This Agreement supersedes any and all other agreements, either oral or in writing, between the
parties hereto with respect to the use of CITY's CDBG funds by SUBRECIPIENT and contains all the
covenants and agreements between the parties with respect to such employment in any manner whatsoever.
Each party to this Agreement acknowledges that no representations, inducements, promises or agreements,
orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not
embodied herein, and that no other agreement or amendment hereto shall be effective unless executed in
writing and signed by both CITY and SUBRECIPIENT.
XV. LAWS GOVERNING THIS AGREEMENT
This Agreement shall be governed by and construed in accordance with the laws of the State of
California, and all applicable federal laws and regulations.
14
60A-30 EXHIBIT 3
XVL CLOSE-OUT
The SUBRECIPIENT agrees to comply with the closeout procedures detailed in 2 CFR §200.343,
including the following:
1. SUBRECIPIENT must submit, no later than ninety (90) calendar days after the end
date of the period of performance, all financial, performance, and other reports as required by the
terms and conditions of the Federal award;
2. Unless the CITY authorizes an extension, SUBRECIPIENT must liquidate all
obligations incurred under the Federal award not later than ninety (90) calendar days after the
end date of the period of performance as specified in the terms and conditions of the Federal
award;
3. SUBRECIPIENT must promptly refund any balances of unobligated cash that the
CITY paid in advance or paid and that is not authorized to be retained by SUBRECIPIENT for
use in other projects (See OMB Circular A-129 and 2 CFR §200.345);
4. SUBRECIPIENT must account for any real and personal property acquired with
Federal funds or received from the Federal government in accordance with 2 CFR §§200.310-
200.316 and 200.329; and,
5. The CITY should complete all closeout actions for the Federal award no later than one
year after receipt and acceptance of all required final reports.
XVII. VALIDITY AND SEVERABILITY
The invalidity in whole or in part of any provision of this Agreement shall not void or affect the
validity of any other provision of this Agreement. Whenever possible, each provision of this
AGREEMENT shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this AGREEMENT is held to be prohibited by or invalid under
applicable law, such provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provisions of this AGREEMENT.
XVIIL WAIVER
No delay or omission by either party hereto to exercise any right or power accruing upon any
noncompliance or default by the other party with respect to any of the terms of this Agreement shall
impair any such right or power or be construed to be a waiver thereof. A waiver by either of the parties
hereto of any of the covenants, conditions, or agreements to be performed by the other shall not be
construed to be a waiver of any succeeding breach thereof or of any other covenant, condition or
agreement herein contained.
XIX. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the power, authority
and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY
fully, including reasonable costs and attorney's fees, for any injuries or damages to CITY in the event that
such authority or power is not, in fact, held by the signatory or is withdrawn.
15
60A-31 EXHIBIT 3
b. All Exhibits and Attachments referenced herein and attached hereto shall be incorporated as if
fully set forth in the body of this Agreement.
(Signatures on followingpage)
16
60A-32 EXHIBIT 3
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the last date and year
written below.
ATTEST:
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By: YA .HODGE
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
ROBERT M. Zur Schmiede
Interim Executive Director
Community Development Agency
CITY OF SANTA ANA
Raul Godinez II
City Manager
SUBRECIPIENT:
AM
itl
Tax ID: 0-000000
DUNS #: 0000000
17
60A-33 EXHIBIT 3
City of Santa Ana CDBG Scope of Work
Program Year 2018-19 (July 1, 2018 - June 30, 2019)
Name of Organization Organization Name
Name of Funded Program Program Name
Annual Accomplishment Goal
Unduplicated Participants anticipated to be served during the 12 -month contract period.
TOTAL ISanta Ana Participants D-/.1 I I Low Income Participants 0%
Schedule of Performance
Quarter 1: JUL 1 -SEP 30
Quarter 2: OCT 1 -DEC 31
Quarter 3: JAN 1 - MAR 31
Quarter 4: APR 1 - JUN 30
Unduplicated
Participants
0
Estimated
Pae 1 of 1
6(TA-34
EXHIBIT 3
FISCAL YEAR 2018-2019
PROPOSED PROGRAM BUDGET
Organization Name Organization Name
Program Name
Name
EXPENDITURES
rn+nr kiirioor nrl nrniortorl avncnrliturpc fnrtho nrnnnsed nrneram*
Category
Expenditures
Funded By
Santa Ana
CDBG
Expenditures
Funded By
Other Sources
Total
Program Organization
Budget Budget
Administrative Staff Salaries & Benefits
$0
$0
Program Staff Salaries & Benefits
$0
$0
Contractual/Professional Services
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
0
$0
1
$0
TOTAL Direct Costs
$0
$0
$0 $0
Indirect Costs
10%
$0
TOTAL BUDGET
$0
$0
$0
* Indirect cost rate:
10% Non -Federal entity without federaly recognized negotiated indirect
cost rate, will charge a de minimis rate of 10% of modified total direct
costs.
PROGRAM RESOURCES
LIST ALL OTHER PROGRAM RESOURCES FOR 2018-2019
Funding Source Total
iotaiusteo aoove.
FUNDING SOURCE I AMOUNT
Santa Ana CDBG
EXHIBIT B
60A-35 EXHIBIT 3
2018-2019 CDBG BUDGET LINE ITEMS
ADMINISTRATIVE STAFF
Position Title Annual Salary & Benefits CDBG Funds Requested Description
PROGRAM STAFF
Position Title Annual Salary & Benefits CDBG Funds Requested Description
CONTRACTUAL/PROFESSIONAL SERVICES
Type of Service Contract Amount CDBG FundsRequested Description
OTHER LINE ITEMS
Line Item Program Amount CDBG Funds Requested Description
EXHIBIT B-1
60A-36 EXHIBIT 3
Certification Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion
Lower Tier Covered Transactions
This certification is required by the regulations implementing Executive Order 12549, Debarment and
Suspension, 29 CFR Part 98, Section 98.510, Participants' responsibilities. The regulations were published
as Part VII of the May 26,1988 Federal Re ig ster (pages 19160-19211).
(BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS FOR CERTIFICATION -
Attached)
(1) The prospective recipient of federal assistance funds certifies, by submission of this proposal, that
neither it nor its principals are presently debarred, suspended, proposed for debarment, declared
ineligible, or voluntarily excluded from participation in this transaction by any federal department or
agency.
(2) Where the prospective recipient of federal assistance funds is unable to certify to any of the
statements in this certification, such prospective participant shall attach an explanation to this
proposal.
Name and Title of Authorized Representative
Signature Date
EXHIBIT C
6U�1 %37 EXHIBIT 3
INSTRUCTIONS FOR CERTIFICATION
1. By signing and submitting this proposal, the prospective recipient of federal assistance funds is
providing the certification as set out below.
2. The certification in this clause is a material representation of fact upon which reliance was placed
when this transaction was entered into. If it is later determined that the prospective recipient of
federal assistance funds knowingly rendered an erroneous certification, in addition to other remedies
available to the Federal Government, the Department of Labor (DOL) may pursue available
remedies, including suspension and/or debarment.
3. The prospective recipient of federal assistance funds shall provide immediate written notice to the
person to which this proposal is submitted if at any time the prospective recipient of federal
assistance funds learns that its certification was erroneous when submitted or has become erroneous
by reason of changed circumstances.
4. The terms "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered
transaction, participant, person, primary covered transaction," "principal," "proposal," and
"voluntarily excluded," as used in this clause, have the meanings set out in the Definitions and
Coverage sections of rules implementing Executive Order 12549. You may contact the person to
which this proposal is submitted for assistance in obtaining a copy of those regulations.
5. The prospective recipient of federal assistance funds agrees by submitting this proposal that, should
the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier
covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily
excluded from participation in this covered transaction, unless authorized by the DOL.
6. The prospective recipient of federal assistance funds further agrees by submitting this proposal that
it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and
voluntary exclusion - Lower Tier Covered Transactions," without modification, in all lower tier
covered transactions and in all solicitations for lower tier covered transactions.
7. A participant in a covered transaction may rely upon a certification of a prospective participant in a
lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded
from the covered transaction, unless it knows that the certification is erroneous. A participant may
decide the method and frequency by which it determines the eligibility of its principals. Each
participant may, but is not required to check the List of Parties Excluded from Procurement or Non -
Procurement Programs.
8. Nothing contained in the foregoing shall be construed to require establishment of a system of
records in order to render in good faith the certification required by this clause. The knowledge and
information of a participant is not required to exceed that which is normally possessed by a prudent
person in the ordinary course of business dealings.
9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a
covered transaction knowingly enters into a lower tier covered transaction with a person who is
suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in
addition to other remedies available to the Federal Government, the DOL may pursue available
remedies, including suspension and/or debarment.
EXHIBIT C
Page 2ot2 EXHIBIT 3
60A-38
Certification Regarding Lobbying
Certification for Contracts Grants Loans and Cooperative Agreements
The undersigned certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of Congress, or
an employee of a Member of Congress in connection with the awarding of any Federal
contract, the making of any cooperative agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal contact, 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, 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, the undersigned shall complete and submit Standard Form -LLL, 'Disclosure
Form to Report Lobbying," in accordance with its instructions.
(3) The undersigned shall require that the language of this certification be included in the
award documents for all subawards at all tiers (including subcontract, subgrants, and
contracts under grants, loans, and cooperative agreements) and that all subrecipients shall
certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by Section 1352, Title
31, 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 $100,000 for each such failure.
Grantee/Contactor Organization Program Title
Name of Certifying Officer Signature Date
EXHIBIT D
Page 1 of 2
60A-39 EXHIBIT 3
SUBRECIPIENT warrants the following:
1. SUBRECIPIENT will comply with Public Law 88-352, Title VI of the Civil Rights
Act of 1964 (42 U. S. C. section 2000 et seq.) and implementing regulation in 24 CFR
Part 1.
2. No person in the United States shall on the ground of race, color, religion, national
origin, or sex, be excluded from participation in, or be denied the benefits of, or be
subjected to discrimination under any program or activity funded in whole or in part with
community development funds made available pursuant to the ACT.
3. All laborers and mechanics, employed by contractors or subcontractors in the
performance of construction work financed in whole or in part with community
development funds shall be paid wages at rates not less than those prevailing on similar
construction in the locality as determined in accordance with the Davis -Bacon Act, as
amended, 40 U. S. C. Sections 276 a 1-5, except for individuals who perform services for
which they volunteered; do not receive compensation for such services; or are paid
expenses, reasonable benefits, or a nominal fee for such services; and are not otherwise
employed at any time in construction work.
4. SUBRECIPIENT will comply with all Federal statutes applicable to projects funded
with community development funds, except that (a) SUBRECIPIENT does not assume
CITY'S environmental responsibilities described at 24 CFR 570.604; and (b)
SUBRECIPIENT does not assume CITY'S responsibility for initiating the review process
under Executive Order 12372.
EXHIBIT D
Page 2 of 2
60A-40 EXHIBIT 3
Certification Regarding Drug -Free Workplace Reciuirements
The certification set out below is a material representation upon which reliance is placed
by the U.S. Department of Housing and Urban Development in awarding the grant. If it
is later determined that the contractor knowingly rendered a false certification, or
otherwise violates the requirements of the Drug -Free Workplace Act, the U.S.
Department of Housing and Urban Development, in addition to any other remedies
available to the Federal Government, may take action authorized under the Drug -Free
Workplace Act.
CERTIFICATION
A. The contractor certifies that it will provide a drug-free workplace by:
(a) Publishing a statement notifying employees that the unlawful manufacture,
distribution, dispensing, possession or use of a controlled substance is
prohibited in the contractor's workplace and specifying the actions that will
be taken against employees for violation of such prohibition;
(b) Establishing a drug-free awareness program to inform employees about—
(1) The dangers of drug abuse in the workplace;
(2) The contractor's policy of maintaining a drug-free workplace;
(3) Any available drug counseling, rehabilitation, and employee
assistance program; and
(4) The penalties that may be imposed upon employees for drug abuse
violations occurring in the workplace;
(c) Making it a requirement that each employee who will be engaged in the
performance of the grant be given a copy of the statement required by
paragraph (a);
(d) Notifying the employee in the statement required by paragraph -(a) that,
as a condition of employment under the contract, the employee will -
(1) Abide by the terms of the statement; and
(2) Notify the employer of any criminal drug statute conviction for a
violation occurring in the workplace no later than five days after
such conviction.
(e) Notifying the U.S. Department of Housing and Urban Development within
ten days after receiving notice under subparagraph (d)(2) from an
employee or otherwise receiving actual notice of such conviction;
EXHIBIT E
Page 1 of 3
60A-41 EXHIBIT 3
(f) Taking one of the following actions, within 30 days of receiving notice
under subparagraph (d)(2), with respect to any employee who is so
convicted -
( 1) Taking appropriate personnel action against such an employee, up
to and including termination; or
(2) Requiring such employee to participate satisfactorily in a drug
abuse assistance or rehabilitation program approved for such
purposes by a Federal, State, or local health, law enforcement, or
other appropriate agency;
(g) Making a good faith effort to continue to maintain a drug-free workplace
through implementation of paragraphs (a), (b), (c), (d), (e) and (f).
B. The contractor shall insert in the space provided on the attached "Place of
Performance" form the site(s) for the performance of work to be carried out with
the grant funds (including street address, city, county, state, and zip code) .the
contractor further certifies that, if it is subsequently determined that additional
sites will be used for the performance of work under the contract, it shall notify
the U.S. Department of Housing and Urban Development immediately upon the
decision to use such additional sites by submitting a revised "Place of
Performance" form.
Organization
Authorized Signature Date
EXHIBIT E
Page 2 of 3
60A-42 EXHIBIT 3
PLACE OF PERFORMANCE
FOR CERTIFICATION REGARDING DRUG-FREE
WORKPLACE REQUIREMENTS
Name:
Date:
The Contractor shall insert in the space provided below the site(s) expected to be used
for the performance of work under the contract covered by the certification:
Place of Performance (include street address, city, county, state, zip code for each site):
EXHIBIT E
Page 3 of 3
60A-43 EXHIBIT 3
NOTE: Same agreement will be
used for nonprofit organizations
approved for the CDBG FY
2018-2019 program.
AGREEMENT BETWEEN THE CITY OF SANTA ANA AND
ONPROFII' ORGANIZATION NAM FOR USE OF
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
This Agreement is hereby made and entered into this 1st day of July, 2018, by and between the City
of Santa Ana, a charter city and municipal corporation or anized and existing under the Constitution and
laws of the State of California ("CITY"), and on rofitOr aniMtion Nam a California nonprofit
corporation ("SUBRECIPIENT").
RECITALS
A. The CITY, as an entitlement recipient and grantee of the United States Department of Housing and
Urban Development ("HUD") Community Development Block Grant ("CDBG") Entitlement Prolaram,
Catalog of Federal Domestic Assistance (CFDA) Number 14.218, andaderal Award Identifcation Numbe
FAT B -TB -MG -06-050 , desires to enter this Agreement with the SUBRECIPIENT for the expenditure of
CDBG funds in accordance with Title 24, Part 570 of Code of Federal Regulations 24 CFR 570.000, et seq.
("CDBG REGS").
B. CITY has applied for and received CDBG funds from HUD pursuant to Title I of the Housing and
Community Development Act of 1974, Public Law 93-383, as amended ("ACT").
C. The SUBRECIPIENT is a private nonprofit corporation that has been selected by the CITY to
receive CDBG funds and administer such financial assistance; and to provide the services described in
Exhibit A, in accordance with the schedule of performance included therein, hereinafter referred to as "said
program". SUBRECIPIENT represents that it is qualified and willing to operate said program and certifies
that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG
program's National Objectives (24 CFR Part 570.208).
D. SUBRECIPIENT agrees that it will adhere to the performance measurements and outcomes as
indicated on Exhibit A (Schedule of Performance). Failure to follow the measurements and meet the
stated outcomes may constitute breach of contract that could result in termination of this Agreement or
serve as reason for the City to recapture the grant funds awarded to SUBRECIPIENT pursuant to this
Agreement.
WHEREFORE, it is agreed by and between the parties that the foregoing Recitals are a substantive
part of this Agreement and the following terms and conditions are approved and together with all exhibits and
attachments hereto, shall constitute the entire Agreement between the CITY and SUBRECIPIENT:
A. Nonprofit Status - Representations and Warranties.
(a) Authority. SUBRECIPIENT is a duly organized and existing nonprofit corporation in good
standing and authorized to do business under the laws of the State of California. SUBRECIPIENT has
full right, power and lawful authority to accept the funding hereunder and to undertake all obligations as
provided herein and the execution, performance and delivery of this Agreement by SUBRECIPIENT has
been fully authorized by all requisite actions on the part of SUBRECIPIENT.
(b) Experience. SUBRECIPIENT is a qualified provider of the services to be provided
hereunder.
60A-45 EXHIBIT 4
(c) Familiarity With Services Required. By executing this Agreement, SUBRECIPIENT
warrants that (i) it has thoroughly investigated and considered the services to be performed and provided
hereunder, (ii) it has carefully considered how the services should be performed, and (iii) it fully
understands the facilities, difficulties and restrictions attending performance of the services under this
Agreement.
(d) No Conflict. To the best of SUBRECIPIENT'S knowledge, SUBRECIPIENT'S execution,
delivery and performance of its obligations under this Agreement will not constitute a default or a breach
under any contract, agreement or order to which SUBRECIPIENT is a party or by which it is bound.
(e) No Bankruptcy. SUBRECIPIENT is not the subject of any current or threatened bankruptcy
proceeding.
(f) No Pending Legal Proceedings. SUBRECIPIENT is not the subject of a current or
threatened litigation that would or may materially affect SUBRECIPIENT'S performance under this
Agreement.
(g) Application Veracity. All provisions of and information provided in SUBRECIPIENT'S
application for funding submitted to CITY including any exhibits are true and correct in all material
respects.
(h) No Pending Investigation. SUBRECIPIENT is not aware that it is the subject of any current
or threatened criminal or civil action investigation by any public agency, including without limitation a
police agency or prosecuting authority, that would relate to affect performance of the Agreement or
provision of services hereunder.
B. Amount of Grant/Term and Quarterly Disbursement. The amount granted to
SUBRECIPIENT is 00 00 ("CDBG FUNDS"), for the term of July 1, FQIR through June 30, �.
Such funds shall be expended by SUBRECIPIENT on or before June 30, M. The Term of this
Agreement may be extended by a writing executed by the City Manager, or his or her designee, and the
City Attorney. The CDBG FUNDS shall be disbursed by CITY to SUBRECIPIENT on a quarterly basis
subject to and upon receipt and approval of a complete quarterly activity report from SUBRECIPIENT,
with the final payment subject to the satisfaction of the condition precedent of submittal of complete
reporting information due on or before July 15 of the applicable funding year, as hereinafter more fully
set forth. SUBRECIPIENT shall be obligated to perform such duties as would normally extend beyond
the term, including, but not limited to, obligations with respect to indemnification, audits, reporting,
data retention/reporting, and accounting. Failure to provide any of the required documentation and
reporting will cause CITY to withhold all or a portion of a request for reimbursement, or return the entire
reimbursement package to SUBRECIPIENT, until such documentation and reporting has been received
and approved by CITY.
The CITY reserves the right to reduce the grant application if the CITY's fiscal monitoring indicates
that SUBRECIPIENT's rate of expenditure will result in unspent funds at the end of the program year.
Amendments in the grant allocation will be made after consultation with SUBRECIPIENT.
C. Use of Funds. SUBRECIPIENT agrees to use all federal funds provided by CITY to
SUBRECIPIENT pursuant to this Agreement to operate said program, as set forth in "Exhibit A," attached
hereto and by this reference incorporated herein. SUBRECIPIENT'S failure to perforin as required may, in
addition to other remedies set forth in this Agreement, result in readjustment of the amount of funds CITY is
otherwise obligated to pay to SUBRECIPIENT hereunder.
2
60A-46 EXHIBIT 4
D. Allowable Costs. SUBRECIPIENT agrees to complete said program on or before June 30,
2019, and to use said funds to pay for necessary and reasonable costs allowable under the federal law and
regulations to operate said program. Said amounts shall include, but not be limited to, wages, administrative
costs, and employee benefits comparable to other similarly situated employees, and indirect costs. Other
allowable program costs are detailed in the budget, as set forth in "Exhibit B," attached hereto and by this
reference incorporated herein. SUBRECIPIENT shall use all income received from said funds only for the
same purposes for which said funds may be expended pursuant to the terns and conditions of this
Agreement. SUBRECIPIENT has the ability to adjust line item amounts in the budget with the written
approval of the CITY's Executive Director of the Community Development Agency, or designee, so long as
the total budget amount does not increase.
Pursuant to 2 CFR §200.331(a)(4), the Indirect Cost Rate for the SUBRECIPIENT's award shall
be an approved federally recognized indirect cost rate negotiated between the SUBRECIPIENT and the
Federal government, or, if no such rate exists, the de minimis indirect cost rate as defined in 2 CFR
§200.414(b) Indirect (F&A) costs.
For this agreement, the de minimis indirect cost rate of M will apply.
E. Licensing. SUBRECIPIENT agrees to obtain and maintain all required licenses,
registrations, accreditation and inspections from all agencies governing its operations. SUBRECIPIENT
shall ensure that its staff shall also obtain and maintain all required licenses, registrations, accreditation and
inspections from all agencies governing SUBRECIPIENT's operations hereunder. Such licensing
requirements include obtaining a City business license, as applicable.
F. Zoning. SUBRECIPIENT agrees that any facility/property used in furtherance of said
program shall be specifically zoned and permitted for such use(s) and activity(ies). Should SUBRECIPIENT
fail to have the required land entitlement and/or permits, thus violating any local, state or federal rules and
regulations relating thereto, SUBRECIPIENT shall immediately make good -faith efforts to gain compliance
with local, state or federal rules and regulations following written notification of said violation(s) from the
CITY or other authorized citing agency. SUBRECIPIENT shall notify CITY immediately of any pending
violations. Failure to notify CITY of pending violations, or to remedy such known violation(s) shall result in
termination of grant funding hereunder. SUBRECIPIENT must make all corrections required to bring the
facility/property into compliance with the law within sixty (60) days of notification of the violation(s); failure
to gain compliance within such time shall result in termination of grant funding hereunder.
G. Separation of Accounts. All funds received by SUBRECIPIENT from CITY pursuant to this
Agreement shall be maintained in an account in a federally insured banking or savings and loan institution
with record keeping of such accounts maintained pursuant to applicable 2 CFR 200.302 requirements.
SUBRECIPIENT is not required to maintain separate depository accounts for CDBG FUNDS; provided
however, the SUBRECIPIENT must be able to account for receipt, obligation and expenditure of CDBG
FUNDS pursuant to applicable 2 CFR 200.302 requirements.
H. Audit Report Requirements. SUBRECIPIENT agrees that if SUBRECIPIENT expends
Seven Hundred Fifty Thousand Dollars ($750,000) or more in federal funds, SUBRECIPIENT shall have an
annual audit conducted by a certified public accountant in accordance with the standards as set forth and
published by the United States Office of Management and Budget. SUBRECIPIENT shall provide CITY
with a copy of said audit by April 1 of the year following the program year in which this Agreement is
executed.
60A-47 EXHIBIT 4
1. Record Keeping/Reporting. SUBRECIPIENT shall keep and maintain complete and
adequate records and reports on program participants to determine their initial and continuing eligibility for
the program services being provided to assist CITY in meeting and maintaining its record keeping
responsibilities under the CDBG REGS, including the following:
(1) Records
a. Documentation evidencing program income requirements in conformity with 24 CFR
570.504(b((2)(i), (ii) and 24 CFR 570.503(b)(3) and 24 CFR 570.208(a)(2)(B) of the income level
of persons and/or families participating in or benefiting by the SUBRECIPIENT program.
b. Documentation of the number of persons and/or families participating in or benefiting
by the SUBRECIPIENT program.
c. Household information shall include number of persons, identification of head of
household, race/ethnicity, and income verification of all household members ages 18 and over.
d. Documentation of all CDBG FUNDS received from CITY.
e. Documentation of expenses as identified in the Budget Proposal, including evidence of
incurring the expense, invoices for goods or services, copies of any and all contracts or
documentation pertaining to costs for subcontractors, plus all other invoices and proof of payment for
which CDBG FUNDS were expended, and any payments therefor.
f. Any such other related records as CITY shall reasonably require or as required to be
maintained pursuant to the CDBG REGS.
(2) Reports
a. Payment Request. Concurrently with the submittal of each quarterly report, on or before
the 15th day of October, January, April and July, SUBRECIPIENT shall submit both: an original
invoice/request for reimbursement and true copies of invoices, receipts, canceled checks, bank
statements, credit card statements, procurement documentation for goods or services, timesheets,
payroll records, benefit statements, agreements, contracts or documentation pertaining to costs for
subcontractors, and/or other documentation supporting and evidencing how the CDBG FUNDS
have been expended during the applicable quarter.
b. Quarterly Progress Report. SUBRECIPIENT agrees to keep records of all ethnic and
racial statistics of persons and families benefited by SUBRECIPIENT in the performance of its
obligations under this Agreement, including, but not limited to, the number of low and moderate
income persons and households assisted in accordance with federal income limits, the number of
female heads of households assisted, new program information and year-to-date program
statistics on expenditures, caseload and activities. Failure to provide any of the required
documentation and reporting will cause CITY to withhold all or a portion of a request for
reimbursement, or return the entire reimbursement package to SUBRECIPIENT, until such
documentation and reporting has been received and approved by CITY.
J. Access to Records. CITY and the United States Government and their representatives or
auditors shall have access for purposes of monitoring, auditing, and examining SUBRECIPIENT's
activities and performance, to books, documents and papers, and the right to examine records of
SUBRECIPIENT's subcontractors, bookkeepers and accountants, employees and participants in regard to
60A-48 EXHIBIT 4
said program. CITY and the United States Government and their representatives or auditors shall also
schedule on-site monitoring at their discretion. Monitoring activities may also include, but are not limited
to, questioning employees and participants in said program and entering any premises or any site in which
any of the services or activities funded hereunder is conducted or in which any of the records of
SUBRECIPIENT are kept. Nothing herein shall be construed to require access to any privileged or
confidential information as set forth in federal or state law.
K. Location of Records/Required Leneth of Record Keeping. All accounting records, reports,
and evidence pertaining to all costs, expenses and the CDBG FUNDS of SUBRECIPIENT and all
documents related to this Agreement shall be maintained and kept available at SUBRECIPIENT'S office
or place of business for the duration of the Agreement and thereafter for five (5) years from the date of
final payment under this Agreement. Records which relate to (a) complaints, claims, administrative
proceedings or litigation arising out of the performance of this Agreement, or (b) costs and expenses of
this Agreement to which CITY or any other governmental agency takes exception, shall be retained
beyond the five (5) years until complete resolution or disposition of such appeals, litigation claims, or
exceptions. In the event SUBRECIPIENT does not make the above -referenced documents available within
the city of Santa Ana, California, SUBRECIPIENT agrees to pay all necessary and reasonable expenses
incurred by CITY in conducting any audit at the location where said records and books of account are
maintained.
L. Compliance with Law/Program Income. SUBRECIPIENT acknowledges that the funds
being provided by CITY for said program are received by CITY pursuant to the ACT as amended and that
expenditures of these funds shall be in accordance with the ACT and all pertinent regulations issued by
agencies of the federal government, including, but not limited to, all regulations found at Title 24 of the Code
of Federal Regulations. Program income received by SUBRECIPIENT shall be returned to CITY unless
otherwise provided for in this Agreement. SUBRECIPIENT agrees to comply fully with all federal, state and
local laws and court orders applicable to its operation whether or not referred to in this Agreement.
M. Debarment. To protect the public interest and ensure the integrity of Federal programs,
CITY may only conduct business with responsible persons and may not make any award or permit any
award to any party which is debarred or suspended or is otherwise excluded from or ineligible for
participation in Federal assistance programs under Executive Order 12549, "Debarment and Suspension".
See also 24 CFR 570.609. SUBRECIPIENT must review and sign Exhibit C "Debarment", which is
attached hereto and incorporated herein by this reference. SUBRECIPIENT shall be in good standing,
without suspension by the California Secretary of State, Franchise Tax Board and Internal Revenue Service.
Any change in the corporate status or suspension of SUBRECIPIENT shall be reported immediately to
CITY.
N. Confidentiality. Without prejudice to any other provisions of this Agreement,
SUBRECIPIENT shall, where applicable, maintain the confidential nature of information provided to it
concerning participants in accordance with the requirements of federal and state law. However,
SUBRECIPIENT shall submit to CITY and or HUD or its representatives, all records requested, including
audit, examinations, monitoring and verifications of reports submitted by SUBRECIPIENT, costs incurred
and services rendered hereunder.
O. Independent Contractor. SUBRECIPIENT agrees that the performance of obligations
hereunder is rendered in its capacity as an independent contractor and that it is in no way an agency of CITY.
P. Violation of Terns and Conditions. SUBRECIPIENT agrees that if SUBRECIPIENT
violates any of the terms and conditions of this Agreement or any prior Agreement whereby CDBG funds
were received by SUBRECIPIENT, or if SUBRECIPIENT reports inaccurately, or if on audit there is a
60A-49 EXHIBIT 4
disallowance of certain expenditures, SUBRECIPIENT agrees to remedy the acts or omissions causing the
disallowance and repay CITY all amounts spent in violation thereof. If SUBRECIPIENT engaged in
fraudulent activity to obtain and/or justify expenditure of the CDBG funds granted hereunder,
SUBRECIPIENT shall be required to reimburse the CITY of all such funds that were obtained and/or spent
under fraudulent circumstances.
Q. Equipment. SUBRECIPIENT agrees to maintain a record for each item of non -expendable
personal property acquired under the terms of this Agreement. Said record shall be made available to CITY
upon request. The term "non -expendable personal property" shall include leased and purchased equipment.
R. Prohibited Use. SUBRECIPIENT hereby certifies and agrees that it will not use funds
provided through this Agreement to pay for entertainment, meals or gifts, or other prohibited uses.
S. Lobbying. SUBRECIPIENT certifies that it will comply with federal law (31 U.S.C. 1352)
and regulations found at 24 CFR Part 87, which provide that no appropriated funds may be expended by the
recipient of a federal contract, grant, loan or cooperative agreement to pay any person for influencing or
attempting to influence an officer or employee of any agency, Member of Congress, or an officer or
employee of a Member of Congress in connection with awarding of any federal contract, the making of any
federal grant or loan, entering into any cooperative agreement and the extension, renewal, amendment or
modification of any federal contract, grant, loan or cooperative agreement. SUBRECIPIENT shall sign a
certification to that effect in a form as set forth in "Exhibit D," attached hereto and by this reference
incorporated herein. SUBRECIPIENT shall submit said signed certification to CITY prior to performing any
of its obligations under this Agreement and prior to any obligation arising on the part of CITY to pay any
sums to SUBRECIPIENT under the terms and conditions of this Agreement.
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, 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, the undersigned shall complete and submit a
"Disclosure Form to Report Lobbying," in accordance with its instructions (Exhibit D).
SUBRECIPIENT shall require that the language of this certification be included in the
award documents for all sub -awards at all tiers (including subcontractors, sub -grants, and contracts under
grants, loans, and cooperative agreements), and agrees to take all actions necessary to ensure that all
subrecipients shall similarly certify and disclose accordingly.
T. Financial Interest. SUBRECIPIENT agrees that except for the use of CDBG funds to pay
salaries and other related administrative or personnel costs, no persons who exercise or have exercised
any function with respect to CDBG activities assisted under the terms of this Agreement, or who are in a
position to participate in a decision-making process or gain inside information with regard to such
activities, may obtain a financial interest or benefit from a CDBG-assisted activity of SUBRECIPIENT,
either for themselves or those with whom they have family or business ties, during their tenure or for one
year thereafter. This prohibition applies to any person who is an employee, agent, consultant, officer, or
elected or appointed official of CITY, or of any designated public agency, or the SUBRECIPIENT.
U. Labor Standards. The SUBRECIPIENT agrees to comply with the requirements of the
Secretary of Labor in accordance with the Davis -Bacon Act as amended, the provisions of Contract Work
Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable Federal, state and local
laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this
Agreement. The SUBRECIPIENT agrees to comply with the Copeland Anti -Kick Back Act (18 U.S.C.
874 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR Part 5. The
60A-50 EXHIBIT 4
SUBRECIPIENT shall maintain documentation that demonstrates compliance with hour and wage
requirements of this part. Such documentation shall be made available to the CITY for review upon
request.
SUBRECIPIENT agrees that, except with respect to the rehabilitation or construction of
residential property containing less than eight (8) units, all contractors engaged under contracts in excess
of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance
provided under this contract, shall comply with Federal requirements adopted by the CITY pertaining to
such contracts and with the applicable requirements of the regulations of the Department of Labor, under
29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to
journey workers; provided that, if wage rates higher than those required under the regulations are imposed
by state or local law, nothing hereunder is intended to relieve the SUBRECIPIENT of its obligation, if
any, to require payment of the higher wage. The SUBRECIPIENT shall cause or require to be inserted in
full, in all such contracts subject to such regulations, provisions meeting the requirements of this
paragraph.
V. Section 3 of the Housing and Urban Development Act of 1968. SUBRECIPIENT will make
every effort to provide training opportunities for low -and moderate -income persons residing within the
community where the construction project is located and contracts awarded to local businesses therein to the
greatest extent feasible as required under the provisions of Section 3 of the Housing and Urban Development
Act of 1968, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder
prior to the execution of this Agreement. Compliance with the foregoing requirements shall be a condition of
the federal financial assistance provided under this Agreement and binding on the SUBRECIPIENT. Failure
to fulfill these requirements shall subject the SUBRECIPIENT, its successors and designees, to those
sanctions specified by the Agreement through which federal assistance is provided. The SUBRECIPIENT
certifies and agrees that no contractual or other disability exists which would prevent compliance with these
requirements. SUBRECIPIENT shall make every effort to ensure that all projects funded wholly or in part
by CDBG funds shall provide equal employment opportunities for minorities and women.
W. Drug Free Workplace. SUBRECIPIENT agrees to provide a drug-free work place and to
execute a certification as set forth in "Exhibit E" attached hereto and incorporated herein by this reference.
X. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards. The following requirements and standards must be complied with: 2 CFR Part 200 et al.
SUBRECIPIENT shall procure all materials, property, or services in accordance with the requirements of
2 CFR 200.318-326.
Y. Subpart K of 24 CFR 570. SUBRECIPIENT will carry out its activities in compliance with the
requirements of Subpart K of 24 CFR 570, however SUBRECIPIENT does not assume the CITY's
environmental responsibilities or the responsibility for initiating the environmental review process under 24
CFR Part 52.
Z. Women- and Minority -Owned Businesses (W/MBE) SUBRECIPIENT will use its best
efforts to afford small businesses, minority business enterprises, and women's business enterprises the
maximum practicable opportunity to participate in the performance of this Agreement in accordance with
the requirements of 2 CFR 200.321 "Contracting with small and minority businesses, women's business
enterprises, and labor surplus area firms". As used in this Agreement, the term "small business" means a
business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C.
632), and "minority and women's business enterprise" means a business at least fifty-one percent (51%)
owned and controlled by minority group members or women. For the purpose of this definition,
"minority group members" are African-Americans, Spanish-speaking, Spanish surnamed or Spanish -
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60A-51 EXHIBIT 4
heritage Americans, Asian-Americans, and American Indians. SUBRECIPIENT may rely on written
representations by businesses regarding their status as minority and female business enterprises in lieu of
an independent investigation.
II. CITY'S OBLIGATIONS
A. Payment of Funds. On July 1,Q- , the CITY was allocated 5 286,26 for fiscal year:1 -
04, from the United States Department of Housing and Urban Development ("HUD") Community
Development Block Grant ("CDBG") Entitlement Program. CITY agrees to pay to SUBRECIPIENT when,
if and to the extent federal funds are received a sum not to exceed llll@lWDollars -$00 00) for
SUBRECIPIENT'S performance in accordance with the Budget attached hereto as "Exhibit B" during the
period of this Agreement. Payments shall be made to SUBRECIPIENT through the submission of
invoices/reimbursement requests.
CITY shall pay such invoices/reimbursement requests within thirty (30) days after receipt thereof
provided CITY is satisfied that such expenses have been incurred and documented within the scope and
provisions of this Agreement and that SUBRECIPIENT is in compliance with the terms and conditions of
this Agreement. Failure to provide any of the required documentation and reporting will cause CITY to
withhold all or a portion of a request for reimbursement, or return the entire reimbursement package to
SUBRECIPIENT, until such documentation and reporting has been received and approved by CITY.
Documentation may include, but is not limited to true copies of invoices, receipts, canceled checks, bank
statements, credit card statements, procurement documentation for goods or services, timesheets, payroll
records, benefit statements, agreements, contracts or documentation pertaining to costs for subcontractors,
and/or other documentation supporting and evidencing how the CDBG FUNDS have been expended
during the applicable quarter.
B. Audit of Account. CITY shall include an audit of the account maintained by
SUBRECIPIENT in CITY's annual audit of all CDBG FUNDS in accordance with Title 24 of the Code of
Federal Regulations and other applicable federal laws and regulations.
C. Common Rule: Pursuant to 2 CFR 200.328(a), the CITY manages the day-to-day operations of
each grant and subgrant supported activities. CITY staff has detailed knowledge of the grant program
requirements and monitors grant and subgrant supported activities to assure compliance with Federal
requirements. Such monitoring covers each program, function and activity and performance goals are
reviewed periodically.
D. Environmental Review: In accordance with 24 CFR 58, the CITY is responsible for
undertaking environmental review and maintaining environmental review records for each applicable
project.
E. Performance Monitoring: CITY shall monitor the performance of SUBRECIPIENT against
goals and performance standards required herein. The SUBRECIPIENT shall be responsible to
accomplish the levels of performance as set forth in Exhibit A and report such measures quarterly to the
CITY. If the SUBRECIPIENT estimates such goals will not be met, the SUBRECIPIENT is to contact
the CITY, at which time the CITY will determine if any adjustments to the grant award is appropriate.
Substandard performance as determined by the CITY will constitute non-compliance with this
Agreement. Should the CITY determine that the SUBRECIPIENT has not performed its obligations as
stated in this contract in a satisfactory manner, or if the CITY determines that insufficient supporting
information has been submitted, the CITY shall notify the SUBRECIPIENT in writing of its
determination specifying in full detail the objections which it has to the SUBRECIPIENT's performance.
If action to correct such substandard performance is not taken by the SUBRECIPIENT after being
60A-52 EXHIBIT 4
notified by the CITY, within a reasonable period of time as stipulated in the written notification, contract
suspension or termination procedures will be initiated.
III. NONDISCRIMINATION
A. SUBRECIPIENT agrees to comply with Executive Order 11246 which requires that during the
performance of this Agreement, SUBRECIPIENT agrees not to discriminate against any employee or
applicant for employment because of race, religion, sex, color or national origin. Such action shall include,
but not be limited to the following: employment, upgrading, demotion, or transfer, rates of pay or other forms
of compensation, and selection for training, including apprenticeship. SUBRECIPIENT agrees to post in
conspicuous places, available to employees and applicants for employment, notices to be provided by the
SUBRECIPIENT setting forth the provisions of this nondiscrimination clause.
B. SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 which indicates
that no person shall, on the ground of race, color or national origin, be excluded from participation in, be
denied the benefits of, or be subject to discrimination under any program of activity receiving federal
financial assistance.
C. No person shall, on the grounds of race, sex, creed, color, religion, marital status, national origin,
age, sexual orientation, or physical or mental handicap be excluded from participation in, be refused the
benefits of, or otherwise be subject to discrimination in any activities, programs or employment supported by
this Agreement. SUBRECIPIENT is prohibited from discrimination on the basis of age or with respect to an
otherwise qualified handicapped person as provided for under Section 109 of the Housing and Community
Development Act of 1974, as amended.
D. SUBRECIPIENT agrees to comply with the Age Discrimination Act of 1975 which requires that
during the performance of this Agreement, SUBRECIPIENT agrees not to discriminate against any employee
or applicant for employment because of age. Such action shall include, but not be limited to the following:
employment upgrading, demotion, or transfer, rates of pay or other forms of compensation, and selection for
training, including apprenticeship. SUBRECIPIENT agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided by the SUBRECIPIENT setting forth the
provisions of this age discrimination clause.
E. SUBRECIPIENT agrees to comply with Section 504 of the Rehabilitation Act of 1973 which
requires that no otherwise qualified individual with a disability in the United States, shall, solely by reason of
his or her disability, be excluded from the participation in, be denied the benefits of, or be subjected to
discrimination under any program or activity receiving federal financial assistance or under any program or
activity conducted by any executive agency or by the United States Postal Service.
IV. CONFLICT OF INTEREST
Pursuant to the conflict of interest requirements set forth in 24 CFR 570.611 and 2 CFR 200.112,
SUBRECIPIENT certifies that no member, officer, employee, agent or assignee of CITY having direct or
indirect control of any CDBG monies granted to the CITY, inclusive of the subject CDBG FUNDS, shall
serve as an officer of SUBRECIPIENT. Further, any conflict or potential conflict of interest of any officer of
SUBRECIPIENT shall be fully disclosed in writing prior to the execution of this Agreement and said writing
shall be attached and deemed fully incorporated as a part hereof. Notice shall be sent by SUBRECIPIENT to
CITY regarding any changes or modifications to its board of directors and list of officers.
60A-53 EXHIBIT 4
V. SPECIAL CERTIFICATION FOR RELIGIOUS ENTITIES
If SUBRECIPIENT is a religious entity, SUBRECIPIENT hereby agrees that in connection with the
provision of the services SUBRECIPIENT shall provide with CDBG funds, in accordance with 24 CFR
570.2000):
A. SUBRECIPIENT shall not discriminate against any employee or applicant for employment on
the basis of religion and shall not limit employment or give preference in employment to persons on the basis
of religion.
B. SUBRECIPIENT shall not discriminate against any person applying for the services
SUBRECIPIENT agrees to provide under the terms of this Agreement on the basis of religion and shall not
limit such services or give preference to applicants for such services on the basis of religion.
C. SUBRECIPIENT shall NOT provide religious instruction or counseling, conduct any religious
worship or services, or engage in any religious proselytizing, or exert any religious influence in the provision
of the services in said program. The parties agree that this covenant is intended to and shall be construed for
the limited purpose of assuring compliance with respect to the use of CITY funds by SUBRECIPIENT with
applicable constitutional limitations respecting the establishment of religion as set forth in the establishment
clause under the First Amendment of the United States Constitution and Article I, Section 4 of the California
Constitution, and is not in any manner intended to restrict other activities of SUBRECIPIENT.
D. The portion of a facility used to provide public services assisted in whole or in part under this
Agreement shall contain no sectarian or religious symbols.
E. Where the services to be provided under said program are rendered on property owned by the
primarily religious entity SUBRECIPIENT, CDBG funds may also be used for minor repairs to such property
which are directly related to the cost of rendering the services under said program, where the cost constitutes
in dollar terms only an incidental portion of the CDBG expenditure for rendering the services under said
program.
VI. PROHIBITION OF NEPOTISM
SUBRECIPIENT agrees not to hire or permit the hiring of any person to fill a position funded
through this Agreement if a member of that person's immediate family is employed in an administrative
capacity by SUBRECIPIENT. For the purposes of this section, the term "immediate family" means spouse,
child, mother, father, brother, sister, brother-in-law, sister-in-law, father-in-law, mother-in-law, son-in-law,
daughter-in-law, aunt, uncle, niece, nephew, stepparent and stepchild. The term "administrative capacity"
means having selection, hiring, supervisor or management responsibilities.
VII. NOTICES
Notices to the parties shall, unless otherwise requested in writing, be sent by U.S. Mail, postage
prepaid, and addressed as follows:
TO CITY: City of Santa Ana
Community Development Agency (M-25)
20 Civic Center Plaza
P.O. Box 1988
Santa Ana, California 92702-1988
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60A-54 EXHIBIT 4
TO SUBRECIPIENT: rganlaatibn Gbntac
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VIII. ASSIGNABILITY
None of the duties of, or work to be performed by, SUBRECIPIENT under this Agreement shall be
subcontracted or assigned to any agency, consultant, or person without the prior written consent of CITY.
SUBRECIPIENT must submit all subcontracts and other agreements that relate to this Agreement to CITY.
No subcontract or assignment shall terminate or alter the legal obligations of SUBRECIPIENT pursuant to
this Agreement.
IX. HOLD HARMLESS
SUBRECIPIENT shall indemnify, defend and save harmless CITY, its officers, employees, agents,
representatives and volunteers from and against any and all damages to or for loss of use of property and for
injuries to or death of any person or persons, including property and employees or agents of CITY, and shall
defend, indemnify and save harmless CITY, its officers, employees, agents, representatives and volunteers
from and against any and all claims, demands, suits, actions or proceedings of any kind or nature, including,
but not by way of limitation, workers compensation claims and including attorney fees and reasonable
expenses for litigation or settlement, resulting from or arising out of the negligent or wrongful acts, errors or
omissions of SUBRECIPIENT, its officers, directors, employees, agents, subcontractors and suppliers arising
out of SUBRECIPIENT's performance of this Agreement.
X. INSURANCE
1. Commercial General Liability. SUBRECIPIENT agrees to obtain and keep in force
during the tern of this Agreement a policy of comprehensive commercial public liability insurance
insuring the CITY, and SUBRECIPIENT against any liability for accident, injury or death arising out of
or in consequence of this Agreement. Such insurance shall be in an amount not less than One Million
Dollars ($1,000,000.00) for any injury to or death of any person or persons in any single accident or
occurrence. Said policy of comprehensive liability insurance shall be endorsed to provide to CITY at
least thirty (30) days written notice prior to cancellation; name CITY, its officers, agents, employees, and
volunteers, additional insured; and state that such coverage is primary to any other coverage or self-
insurance and CITY. Governmental entities may provide proof of self-insurance.
(a) Such insurance shall: (1) name the City of Santa Ana, its officers, agents,
representatives, employees and volunteers as additional insured's; (2) be primary with respect to
insurance or self-insurance programs maintained by the CITY; (3) contain standard separation of
insured's provisions; and (4) give to CITY prompt and timely notice of claim made or suit instituted
arising out of SUBRECIPIENT's operations hereunder.
(b) SUBRECIPIENT shall: (1) prior to exercising any right under this
Agreement, furnish properly executed certificates of insurance and additional insured endorsement to the
CITY which shall clearly evidence all coverages required above; (2) provide that such insurance shall not
be materially changed or terminated except on 30 days prior written notice to the CITY; (3) maintain such
insurance for the period covered by this Agreement; and (4) replace such certificates for policies expiring
prior to the expiration of this Agreement
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60A-5555 EXHIBIT 4
2. Automobile Liability Coverage SUBRECIPIENT shall also obtain and maintain, during
the effective period of this Agreement, broad form automobile liability coverage with a $1,000,000 limit
unless reduced by CITY, which applies to both owned/leased and non -owned automobiles used by
SUBRECIPIENT employees or participants in performance of this Agreement, or, in the event that
SUBRECIPIENT will not utilize such owned/leased automobiles but intends to require employees,
participants or other agents to utilize their own automobiles in the performance of this Agreement,
SUBRECIPIENT shall secure and maintain on file from all such employees, participants, or agents as
self -certification of automobile insurance coverage. Governmental entities may provide proof of self-
insurance.
3. Workers' Compensation. If SUBRECIPIENT is an "employer", as set forth in California
Labor Code Section 3300 et seq., or utilizes participants as "employees," as set forth in California Labor
Code Section 3350 et seq., SUBRECIPIENT shall obtain and keep in force during the term of this
Agreement full Workers' Compensation insurance coverage for injuries suffered by participants. Said
insurance policy shall guarantee CITY at least thirty (30) days written notice of cancellation or
modification.
4. Equipment Coverage. SUBRECIPIENT shall purchase a policy or policies of insurance
covering loss or damage to any and all Equipment provided to or purchased by SUBRECIPIENT in
accordance with this Agreement. Said insurance shall be in the amount of the full replacement value
thereof, providing protection against the classification of fire, extended coverage, vandalism, malicious
mischief, theft, and special extended perils. Governmental entities may substitute a certificate of self-
insurance.
5. Proof of Insurance. Certificates and endorsements must be submitted and approved by
CITY prior to any work under this Agreement. SUBRECIPIENT understands that CITY will make no
payments under this Agreement until the required certificates and endorsements have been approved by
CITY.
XI. REVERSION OF ASSETS
A. Upon the expiration of this Agreement, SUBRECIPIENT shall transfer to CITY any CDBG
funds on hand at the time of the expiration of this Agreement as well as any accounts receivable attributable
to the use of CDBG funds. [24 CFR 570.503(b)(7)]
B. Any real property under SUBRECIPIENT's control that was acquired or improved in whole or in
part with CDBG funds in excess of $25,000.00 must either be:
1. Used, where CITY has given written approval, to meet one of the national
objectives stated in 24 CFR 570.208 until five (5) years after expiration of this Agreement, or for such longer
period of time as determined to be appropriate by CITY; or
2. If not used in accordance with subparagraph 1 above, SUBRECIPIENT shall pay to
CITY an amount equal to the current fair market value of the property less any portion of the value
attributable to the expenditure of non-CDBG funds for acquisition of, or improvement to, the property. Such
payment is program income to CITY.
C. Subject to the obligations set forth herein, title to equipment acquired under the terms of this
Agreement will vest upon acquisition in SUBRECIPIENT. When said equipment which has been acquired
in accordance with this Agreement and all applicable regulations is no longer needed for said program,
disposition of said equipment will be made as follows:
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60A-56 EXHIBIT 4
I . Items of equipment with a current per unit fair market value of less than $5,000.00
may be retained, sold or otherwise disposed of with no further obligation to CITY.
2. Items of equipment with a current fair market per unit value of $5,000.00 or more
may be retained or sold and CITY shall have the right to an amount calculated by multiplying the current
market value or proceeds from the sale by CITY's share of federal funds used to acquire the equipment, in
accordance with 2 CFR 200.313(e)(2).
D. SUBRECIPIENT hereby agrees, upon the demand of CITY, to execute, acknowledge and
deliver, or cause any person or entity who may have any claim to rights hereunder or under any document,
instrument or agreement executed in furtherance of the services and activities to be performed hereunder, to
execute, acknowledge and deliver, to CITY assignment(s), quit claim deed(s) or such other and further
instruments, documents and agreements as may be necessary, in the sole and absolute discretion of CITY, to
vest in CITY all of SUBRECIPIENT's right, title and interest (if any it may have) in and to CITY, CDBG or
other federal, state and/or local accounts or program funds or allocation of funds to which CITY is or may be
entitled, either for its own account or as fiduciary or trustee for others, which were obtained for the purpose of
the performance of this Agreement or any previous agreements relating to the same subject matter or
activities as this Agreement, together with any instruments, loans, grants or advances by SUBRECIPIENT on
behalf of CITY, in furtherance of the activities hereunder or thereof.
SUBRECIPIENT's obligations and responsibilities set forth in this paragraph "XI. REVERSION OF
ASSETS," and in paragraph "XII. TERMINATION" and other requirements pertaining to program income
shall not be affected by the termination of this Agreement and shall survive the date of termination of this
Agreement for such period of time as CITY and/or HUD deems necessary for the responsibilities, duties and
obligations to be performed and completed to the satisfaction of CITY and HUD.
XII. TERMINATION
A. This Agreement maybe terminated on thirty (30) days' written notice by either party. lathe
event of such termination, SUBRECIPIENT shall only be entitled to reimbursement for approved expenses
incurred to the effective date of termination.
B. This Agreement may be suspended or terminated by CITY upon five (5) days' written notice for
violation by SUBRECIPIENT of Federal Laws governing the use of Community Development Block Grant
Funds. In the event of such suspension or termination, SUBRECIPIENT shall only be entitled to
reimbursement for approved expenses incurred up to the effective date of suspension or termination.
C. Pursuant to 2 CFR 200.340, in the event SUBRECIPIENT defaults by failing to fulfill all or any
of its obligations hereunder, CITY may declare a default and termination of this Agreement by written notice
to SUBRECIPIENT, which default and termination shall be effective on a date stated in the notice which is to
be not less than ten (10) days after certified mailing or personal service of such notice, unless such default is
cured before the effective date of termination stated in such notice. If terminated for cause, CITY shall be
relieved of further liability or responsibility under this Agreement, or as a result of the termination thereof,
including the payment of money, except for payment for approved expenses incurred for services
satisfactorily and timely performed prior to the mailing or service of the notice of termination, and except for
reimbursement of (1) any payments made for services not subsequently performed in a timely and
satisfactory manner, and (2) costs incurred by CITY in obtaining substitute performance.
D. The grant of funds under this Agreement may be terminated for convenience by either the CITY
or SUBRECIPIENT, in whole or in part, by setting forth the reasons for such termination, the effective date,
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and, in the case of portion termination, their portion to b terminated, however, if in the case of a partial
termination, the CITY determines that the remaining portion of the award will not accomplish the purpose for
with the award was made, the CITY may terminate the award in its entirety.
E. The grant of funds under this Agreement may be terminated due to the non-performance of
SUBRECIPIENT and/or failure of SUBRECIPENT to perform the work described in Exhibits A and B or
failure to meet the performance standards and program goals set forth therein.
F. In the event this Agreement is terminated as set forth in subparagraphs XII.A. through XII.E.,
inclusive, SUBRECIPIENT agrees to immediately return to CITY upon CITY's demand and prior to any
adjudication of SUBRECIPIENT's rights, any and all funds not used, and to comply with paragraph "XI.
REVERSION OF ASSETS" of this Agreement.
XIII. LIMITATION OF FUNDS
The United States of America, through HUD, may in the future place programmatic or fiscal
limitations on the use of CDBG funds which limitations are not presently anticipated. Accordingly, 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, CITY may, in its sole and absolute discretion, reduce the budget
of this Agreement as a whole or as to costs category, may limit the rate of SUBRECIPIENT's authority to
commit and spend funds, or may restrict SUBRECIPIENT's use of both its uncommitted and its unspent
funds. Where HUD has directed or requested CITY to implement a reduction in funding, in whole or as to a
cost category, with respect to funding for this Agreement, CITY's City Manager or delegate is authorized to
act for CITY in implementing and effecting such a reduction and in revising, modifying, or amending the
Agreement for such purposes. If such a reduction in funding occurs, SUBRECIPIENT shall be permitted to
de -scope accordingly. Where CITY has reasonable grounds to question SUBRECIPIENT's fiscal
accountability, financial soundness, or compliance with this Agreement, CITY may suspend the operation of
this Agreement for up to sixty (60) days upon five (5) days written notice to SUBRECIPIENT of its intention
to so act, pending an audit or other resolution of such questions. In no event, however, shall any revisions
made by CITY affect expenditures and legally binding commitments made by 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.
XIV. EXCLUSIVITY AND AMENDMENT OF AGREEMENT
This Agreement supersedes any and all other agreements, either oral or in writing, between the
parties hereto with respect to the use of CITY's CDBG funds by SUBRECIPIENT and contains all the
covenants and agreements between the parties with respect to such employment in any manner whatsoever.
Each party to this Agreement acknowledges that no representations, inducements, promises or agreements,
orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not
embodied herein, and that no other agreement or amendment hereto shall be effective unless executed in
writing and signed by both CITY and SUBRECIPIENT.
XV. LAWS GOVERNING THIS AGREEMENT
This Agreement shall be governed by and construed in accordance with the laws of the State of
California, and all applicable federal laws and regulations.
14
60A-58 EXHIBIT 4
XVI. CLOSE-OUT
The SUBRECIPIENT agrees to comply with the closeout procedures detailed in 2 CFR §200.343,
including the following:
1. SUBRECIPIENT must submit, no later than ninety (90) calendar days after the end
date of the period of performance, all financial, performance, and other reports as required by the
terms and conditions of the Federal award;
2. Unless the CITY authorizes an extension, SUBRECIPIENT must liquidate all
obligations incurred under the Federal award not later than ninety (90) calendar days after the
end date of the period of performance as specified in the terms and conditions of the Federal
award;
3. SUBRECIPIENT must promptly refund any balances of unobligated cash that the
CITY paid in advance or paid and that is not authorized to be retained by SUBRECIPIENT for
use in other projects (See OMB Circular A-129 and 2 CFR §200.345);
4. SUBRECIPIENT must account for any real and personal property acquired with
Federal funds or received from the Federal government in accordance with 2 CFR §§200.310-
200.316 and 200.329; and,
5. The CITY should complete all closeout actions for the Federal award no later than one
year after receipt and acceptance of all required final reports.
XVII, VALIDITY AND SEVERABILITY
The invalidity in whole or in part of any provision of this Agreement shall not void or affect the
validity of any other provision of this Agreement. Whenever possible, each provision of this
AGREEMENT shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this AGREEMENT is held to be prohibited by or invalid under
applicable law, such provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provisions of this AGREEMENT.
XVIII. WAIVER
No delay or omission by either party hereto to exercise any right or power accruing upon any
noncompliance or default by the other party with respect to any of the terms of this Agreement shall
impair any such right or power or be construed to be a waiver thereof. A waiver by either of the parties
hereto of any of the covenants, conditions, or agreements to be performed by the other shall not be
construed to be a waiver of any succeeding breach thereof or of any other covenant, condition or
agreement herein contained.
XIX. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the power, authority
and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY
fully, including reasonable costs and attorney's fees, for any injuries or damages to CITY in the event that
such authority or power is not, in fact, held by the signatory or is withdrawn.
15
60A-59 EXHIBIT 4
b. All Exhibits and Attachments referenced herein and attached hereto shall be incorporated as if
fully set forth in the body of this Agreement.
(Signatures on fallowing page)
16
60A-60 EXHIBIT 4
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the last date and year
written below.
ATTEST:
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By: \UYANkO.HODGE
Assistant City Attorney
RECOMMENDED FOR APPROVAL:
ROBERT M. Zur Schmiede
Interim Executive Director
Community Development Agency
CITY OF SANTA ANA
Raul Godinez II
City Manager
SUBRECIPIENT:
111 VI
itl
Tax ID: 0-000000
DUNS #: 0000000
17
60A-61 EXHIBIT 4
City of Santa Ana CDBG Scope of Work
Program Year 2018-19 (July 1, 2018 - June 30, 2019)
Name of Organization Organization Name
Name of Funded Program Program Name
Annual Accomplishment Goal
Unduplicated Partici antsantici ated to be served duringthe 12 -month contract period.
TOTAL Santa Ana Participants 1 0./1 1 I Low Income Participants o%
uescn
Schedule of Performance
Quarter 1: JUL 1 - SEP 30
Quarter 2: OCT 1 - DEC 31
Quarter 3: JAN 1 - MAR 31
Quarter 4: APR 1 - JUN 30
Unduplicated
Participants
0
Estimated
6�UA=f6�2
EXHIBIT 4
FISCAL YEAR 2018-2019
PROPOSED PROGRAM BUDGET
Organization Name Organization Name
Program Name Program Name
EXPENDITURES
Fnter hudeet rateenries and nroierted exnenditures for the oronosed oroeram:
Category
Expenditures
Funded By
Santa Ana
CDBG
Expenditures
Funded By
Other Sources
Program
Budget
Total
Organization
Budget
Administrative Staff Salaries & Benefits
$0
$0
Program Staff Salaries & Benefits
$0
$0
Contractual/Professional Services
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
0
$0
$0
TOTAL Direct Costs
$0
$0
$0
$0
Indirect Costs
10%
$0
TOTAL BUDGET
$0
$0
$0
* Indirect cost rate: 10% Non -Federal entity without federaly recognized negotiated indirect
cost rate, will charge a de minimis rate of 10% of modified total direct
costs.
PROGRAM RESOURCES
LIST ALL OTHER PROGRAM RESOURCES FOR 2018-2019
Funding Source Total n
i otal listed above.
FUNDING SOURCE AMOUNT
Santa Ana CDBG
EXHIBIT B
60A-63 EXHIBIT 4
2018-2019 CDBG BUDGET LINE ITEMS
ADMINISTRATIVE STAFF
Position Title Annual Salary & Benefits CDBG Funds Requested Description
PROGRAM STAFF
Position Title Annual Salary LR Benefits CDBG Funds Requested Description
CONTRACTUAL/PROFESSIONAL SERVICES
Type of Service Contract Amount CDBG FundsRequested Description
OTHER LINE ITEMS
Line Item Program Amount CDBG Funds Requested Description
EXHIBIT B-1
60A-64 EXHIBIT 4
Certification Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion
Lower Tier Covered Transactions
This certification is required by the regulations implementing Executive Order 12549, Debarment and
Suspension, 29 CFR Part 98, Section 98.510, Participants' responsibilities. The regulations were published
as Part VII of the May 26,1988 Federal Register (pages 19160-19211).
(BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS FOR CERTIFICATION -
Attached)
(1) The prospective recipient of federal assistance funds certifies, by submission of this proposal, that
neither it nor its principals are presently debarred, suspended, proposed for debarment, declared
ineligible, or voluntarily excluded from participation in this transaction by any federal department or
agency.
(2) Where the prospective recipient of federal assistance funds is unable to certify to any of the
statements in this certification, such prospective participant shall attach an explanation to this
proposal.
Name and Title of Authorized Representative
Signature Date
EXHIBIT C
Pae 1 of 2 EXHIBIT 4
60 -65
INSTRUCTIONS FOR CERTIFICATION
1. By signing and submitting this proposal, the prospective recipient of federal assistance funds is
providing the certification as set out below.
2. The certification in this clause is a material representation of fact upon which reliance was placed
when this transaction was entered into. If it is later determined that the prospective recipient of
federal assistance funds knowingly rendered an erroneous certification, in addition to other remedies
available to the Federal Government, the Department of Labor (DOL) may pursue available
remedies, including suspension and/or debarment.
3. The prospective recipient of federal assistance funds shall provide immediate written notice to the
person to which this proposal is submitted if at any time the prospective recipient of federal
assistance funds learns that its certification was erroneous when submitted or has become erroneous
by reason of changed circumstances.
4. The terms "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered
transaction," "participant," "person," "primary covered transaction," "principal," "proposal," and
"voluntarily excluded," as used in this clause, have the meanings set out in the Definitions and
Coverage sections of rules implementing Executive Order 12549. You may contact the person to
which this proposal is submitted for assistance in obtaining a copy of those regulations.
The prospective recipient of federal assistance funds agrees by submitting this proposal that, should
the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier
covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily
excluded from participation in this covered transaction, unless authorized by the DOL.
6. The prospective recipient of federal assistance funds further agrees by submitting this proposal that
it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and
voluntary exclusion - Lower Tier Covered Transactions," without modification, in all lower tier
covered transactions and in all solicitations for lower tier covered transactions.
A participant in a covered transaction may rely upon a certification of a prospective participant in a
lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded
from the covered transaction, unless it knows that the certification is erroneous. A participant may
decide the method and frequency by which it determines the eligibility of its principals. Each
participant may, but is not required to check the List of Parties Excluded from Procurement or Non -
Procurement Programs.
8. Nothing contained in the foregoing shall be construed to require establishment of a system of
records in order to render in good faith the certification required by this clause. The knowledge and
information of a participant is not required to exceed that which is normally possessed by a prudent
person in the ordinary course of business dealings.
9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a
covered transaction knowingly enters into a lower tier covered transaction with a person who is
suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in
addition to other remedies available to the Federal Government, the DOL may pursue available
remedies, including suspension and/or debarment.
EXHIBIT C
Paget of EXHIBIT 4
60A-66
Certification Regarding Lobbying
Certification for Contracts Grants Loans, and Cooperative Agreements
The undersigned certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of Congress, or
an employee of a Member of Congress in connection with the awarding of any Federal
contract, the making of any cooperative agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal contact, 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, 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, the undersigned shall complete and submit Standard Form -LLL, "Disclosure
Form to Report Lobbying," in accordance with its instructions.
(3) The undersigned shall require that the language of this certification be included in the
award documents for all subawards at all tiers (including subcontract, subgrants, and
contracts under grants, loans, and cooperative agreements) and that all subrecipients shall
certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by Section 1352, Title
31, 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 $100,000 for each such failure.
Grantee/Contactor Organization Program Title
Name of Certifying Officer Signature Date
EXHIBIT D
Page 1 of 2
60A-67 EXHIBIT 4
SUBRECIPIENT warrants the following:
1. SUBRECIPIENT will comply with Public Law 88-352, Title VI of the Civil Rights
Act of 1964 (42 U. S. C. section 2000 et seq.) and implementing regulation in 24 CFR
Part 1.
2. No person in the United States shall on the ground of race, color, religion, national
origin, or sex, be excluded from participation in, or be denied the benefits of, or be
subjected to discrimination under any program or activity funded in whole or in part with
community development funds made available pursuant to the ACT.
3. All laborers and mechanics, employed by contractors or subcontractors in the
performance of construction work financed in whole or in part with community
development funds shall be paid wages at rates not less than those prevailing on similar
construction in the locality as determined in accordance with the Davis -Bacon Act, as
amended, 40 U. S. C. Sections 276 a 1-5, except for individuals who perform services for
which they volunteered; do not receive compensation for such services; or are paid
expenses, reasonable benefits, or a nominal fee for such services; and are not otherwise
employed at any time in construction work.
4. SUBRECIPIENT will comply with all Federal statutes applicable to projects funded
with community development funds, except that (a) SUBRECIPIENT does not assume
CITY'S environmental responsibilities described at 24 CFR 570.604; and (b)
SUBRECIPIENT does not assume CITY'S responsibility for initiating the review process
under Executive Order 12372.
EXHIBIT D
Page 2 of 2
60A-68 EXHIBIT 4
Certification Reaardina Drua-Free Workplace Requirements
The certification set out below is a material representation upon which reliance is placed
by the U.S. Department of Housing and Urban Development in awarding the grant. If it
is later determined that the contractor knowingly rendered a false certification, or
otherwise violates the requirements of the Drug -Free Workplace Act, the U.S.
Department of Housing and Urban Development, in addition to any other remedies
available to the Federal Government, may take action authorized under the Drug -Free
Workplace Act.
CERTIFICATION
A. The contractor certifies that it will provide a drug-free workplace by:
(a) Publishing a statement notifying employees that the unlawful manufacture,
distribution, dispensing, possession or use of a controlled substance is
prohibited in the contractor's workplace and specifying the actions that will
be taken against employees for violation of such prohibition;
(b) Establishing a drug-free awareness program to inform employees about—
(1) The dangers of drug abuse in the workplace;
(2) The contractor's policy of maintaining a drug-free workplace;
(3) Any available drug counseling, rehabilitation, and employee
assistance program; and
(4) The penalties that may be imposed upon employees for drug abuse
violations occurring in the workplace;
(c) Making it a requirement that each employee who will be engaged in the
performance of the grant be given a copy of the statement required by
paragraph (a);
(d) Notifying the employee in the statement required by paragraph -(a) that,
as a condition of employment under the contract, the employee will -
(1) Abide by the terms of the statement; and
(2) Notify the employer of any criminal drug statute conviction for a
violation occurring in the workplace no later than five days after
such conviction.
(e) Notifying the U.S. Department of Housing and Urban Development within
ten days after receiving notice under subparagraph (d)(2) from an
employee or otherwise receiving actual notice of such conviction;
EXHIBIT E
Page 1 of 3
60A-69 EXHIBIT 4
(f) Taking one of the following actions, within 30 days of receiving notice
under subparagraph (d)(2), with respect to any employee who is so
convicted -
( 1) Taking appropriate personnel action against such an employee, up
to and including termination; or
(2) Requiring such employee to participate satisfactorily in a drug
abuse assistance or rehabilitation program approved for such
purposes by a Federal, State, or local health, law enforcement, or
other appropriate agency;
(g) Making a good faith effort to continue to maintain a drug-free workplace
through implementation of paragraphs (a), (b), (c), (d), (e) and (f).
B. The contractor shall insert in the space provided on the attached "Place of
Performance" form the site(s) for the performance of work to be carried out with
the grant funds (including street address, city, county, state, and zip code) .the
contractor further certifies that, if it is subsequently determined that additional
sites will be used for the performance of work under the contract, it shall notify
the U.S. Department of Housing and Urban Development immediately upon the
decision to use such additional sites by submitting a revised 'Place of
Performance" form.
Organization
Authorized Signature Date
EXHIBIT E
Page 2 of 3
60A-70 EXHIBIT 4
PLACE OF PERFORMANCE
FOR CERTIFICATION REGARDING DRUG-FREE
WORKPLACE REQUIREMENTS
Name:
Date:
The Contractor shall insert in the space provided below the site(s) expected to be used
for the performance of work under the contract covered by the certification:
Place of Performance (include street address, city, county, state, zip code for each site):
EXHIBIT E
Page 3 of 3
60A-71 EXHIBIT 4
60A-72