HomeMy WebLinkAboutResolution - 3442 STATE OF CALIFORNIA ) RESOLUTION NO. 3442
COUNTY OF RIVERSIDE )ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN JACINTO APPROVING THE SUPPLEMENTAL
AGREEMENT BETWEEN THE CITY OF SAN JACINTO
AND THE COUNTY OF RIVERSIDE FOR THE USE OF
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
FOR PROGRAM YEAR 2012-2013
WHEREAS, the County of Riverside ("County") has applied for and qualified as a
Urban County for the Community Development Block Grant ("CDBG") program (the
"Program") in accordance with 42 U.S.C. § 5302(a)(6) and 24 CFR 570.307 of the
CDBG regulations; and
WHEREAS, the purpose of the Program is to provide participating Urban
Counties with federal CDBG program funding for use in the provision and expansion of
decent, affordable housing and economic opportunities for persons of low and moderate
income; and
WHEREAS, the City of San Jacinto ("City") desires to participate in the Program
and receive Program funds for Program year 2012-2013 for the purposes of assisting
and undertaking essential community development and housing assistance activities,
specifically for targeted code enforcement and street improvements; and
WHEREAS, in order for the City to participate in the Program as a participating
unit of general local government under the County's Urban County designation, the City
must enter into a cooperation agreement with the County; and
WHEREAS, the City and the County have executed a cooperation agreement,
dated July 19, 2011 (the "Agreement"); and
WHEREAS, the City and County now desire to amend the Agreement by
entering into a supplemental agreement (the "Supplemental Agreement") for Program
year 2012-2013 for the purpose of allowing the City's utilization of additional Program
funds totaling up to two hundred three thousand one hundred seventy nine dollars
($203,179) for targeted code enforcement and up to four hundred six thousand three
hundred fifty eight dollars ($406,358) for street improvements, for a total of up to six
hundred nine thousand five hundred thirty seven dollars ($609,537), as specifically
identified in the Supplemental Agreement; and
WHEREAS, the City finds that the Supplemental Agreement with the County is in
the best interest of the City and is consistent with the public health, safety and welfare.
NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City
Council of the City of San Jacinto as follows:
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SECTION 1. Consent to City Participation in Urban County Designation.
The City Council hereby consents to the City's participation
in the Program, and elects to participate in the County's
Urban County designation for the Program.
SECTION 2. Approval of Supplemental Agreement. The City Council
hereby approves the Supplemental Agreement attached
hereto as Exhibit "A" and authorizes and directs the Mayor to
execute the Supplemental Agreement on behalf of the City.
SECTION 3. Further Acts. The City Council hereby authorizes and
directs the City Manager to take such further actions and
execute such other documents as may be necessary or
appropriate in administering the actions authorized by this
Resolution.
SECTION 4. CEQA Compliance. The City Council hereby finds that
approval of the Supplemental Agreement is exempt from the
requirements of the California Environmental Quality Act
("CEQA"), pursuant to State CEQA Guidelines Section
15378. The Supplemental Agreement is a government
funding mechanism, and does not involve any commitment
to a specific project which may result in a potentially
significant physical impact on the environment.
SECTION 5. Notice of Exemption. The City hereby authorizes and directs
that a Notice of Exemption shall be filed with the Clerk of the
Board of Supervisors of the County of Riverside, California,
within five (5) working days following the date of adoption of
this Resolution.
SECTION 6. Effective Date. This Resolution shall take effect immediately
upon its adoption.
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PASSED, APPROVED AND ADOPTED this 2nd day of October, 2012, by the
following vote:
Ayes: Bartel, Di Memmo, Ledezma, Miller, Kotyuk
Nays: None
Absent: None
Abstain: None
CITY OF SAN JACINTO
Andrew rKotyuk, Mayor
ATTEST:
Richard Miller, City Clerk
APPROVED AS TO FORM:
Best Best & Krieger, LLP
19 -
Z'-y /3 r
effr y S. Ballin r, City Attorney
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EXHIBIT "A"
SUPPLEMENTAL AGREEMENT
[Attached behind this page]
Page 4 of 4
1 File No.: 3.SJ.01-12 and 3.SJ.02-12
2
SUPPLEMENTAL AGREEMENT FOR THE USE OF
' 2012-2013 COMMUNITY DEVELOPNIENT BLOCK GRANT FUNDS
4
5 The COUNTY OF RIVERSIDE of the State of California, herein called, "COUNTY,"
6 and the CITY OF SAN JACINTO, herein called "CITY," mutually agree as follows:
7 1. GENERAL. COUNTY and CITY have executed a Cooperation Agreement, dated
8 July 2011, whereby CITY elected to participate with COUNTY, which has qualified as an
9 "Urban County" for purposes of receiving Community Development Block Grant (CDBG)
10 funds, and to assist and undertake essential community development and housing assistance
11 activities pursuant to the Housing and Community Development Act of 1974, Title 1, as
12 amended, Public Law 93-383 hereinafter referred to as "Act". Said Cooperation Agreement,
13 dated July 2011, is incorporated herein by reference and made a part of this Agreement as if each
14 and every provision was set forth herein.
15 2. PURPOSE. CITY promises and agrees to undertake and assist with the
16 community development activities, within its jurisdiction, by utilizing the sum of S609,537;
17 CDBG Entitlement Funds, as specifically identified in Exhibits A and B are attached hereto and
18 by this reference are incorporated herein, for the projects:
19 A. 3.SJ.01-12 Targeted Code Enforcement, S2039179
20 B. 3.SJ.02-12 San Jacinto Downtown Street Improvement Project $406,358
21 3. TERM OF AGREEMENT. The term of this Agreement for the projects shall
22 be for a period of one (1) year from July 1, 2012 to June 30, 2013, and proceed consistent with
23 the completion schedule set forth in Exhibits A and B. In the event that the projects are not
24 substantially completed by the time set forth in the completion schedule due to unforeseen or
25 uncontrollable causes, the COUNTY may consider extending the schedule for the completion of
26 the project. Times of performance for other activities may also be extended in writing by
27 COUNTY. If substantial progress toward completion in conformance with the completion
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I schedule, as determined by COUNTY, of the projects are not made during the term of the
2 Supplemental Agreement, COUNTY may suspend or terminate this agreement by the
3 procedures set forth in the Section titled "Termination", of this agreement and the entitlement
4 finds associated with the projects may be reprogrammed by COUNTY after appropriate notice
5 is given.
6 4. DISPOSITION OF FUNDS.
7 A. COUNTY's Board of Supervisors shall determine the final disposition and
8 distribution of all fiords received by COUNTY under the Act consistent with the provisions of
9 Paragraphs 2 and 3 of this Agreement. COUNTY, through its Economic Development Agency,
10 shall: (1) Make payment of the grant finds to CITY as designated in Exhibits A and B; and (2)
11 It is the CITY's responsibility to monitor all project activities of Exhibits A and B to ensure
12 compliance with applicable federal regulations and the terms of this Agreement.
13 B. CITY shall comply with timely drawdown of CDBG funds by
14 expeditiously implementing and completing County-approved, CDBG-funded projects. CITY
15 acknowledges that CITY's drawdown performance directly impacts the COUNTY's overall
16 program drawdown rate. If the CITY's unobligated CDBG fund balance, as of January 15, 2013,
17 exceeds two-times (200%) the CITY's 2012-2013 CDBG allocation, the COUNTY may take the
18 necessary administrative actions to reduce the CITY's CDBG fund balance. Necessary actions
19 include reprogramming the excess CDBG fund balance to other eligible activities as selected by
20 COUNTY. COUTY may authorize CITY in writing, prior to January 15, 2013, to exceed the
21 CDBG fiend balance requirement.
22 C. CITY shall comply with timely drawdown of finds by submitting monthly
23 requests for reimbursement or other County-approved reimbursement schedule. All
24 disbursements of grant funds will be on a reimbursement basis and made within thirty (30) days
25 after the CITY has submitted its letter identifying payments and documentation supporting
26 expenditures.
27 D. All authorized obligations incurred in the performance of the Agreement
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I for projects eligible under the following regulations must be reported to COUNTY no later than
2 by June 15, 2013:
3 1. Public Services [24 CFR 570.201 (e)]
4 2. Acquisition [24 CFR 570.201 (a)]
5 3. Clearance Activities [24 CFR 570.201 (d)]
6 4. Interim Assistance [24 CFR 570.201 (f)]
7 5. Code Enforcement [24 CFR 570.202 (c)]
8 All other eligible activities under this Agreement must be implemented, completed, and
9 obligations reported by the CITY no later than the completion schedules set forth in the Exhibits
10 to this Agreement.
11 5. COOPERATION WITH HOUSING ACTIVITIES. CITY shall cooperate with
12 COUNTY in undertaking essential community development and housing assistance activities,
13 specifically urban renewal and public assistance housing, and shall assist COUNTY in carrying
14 out its Strategic Plan of the Consolidated Plan and other requirements of the Community
15 Development Block Grant Program.
16 6. LEAD AGENCY FOR COMPLIANCE WITH THE CALIFORNIA
17 ENVIRONMENTAL QUALITY ACT (CEQA). Pursuant to Section 15051(d) of Title 14 of the
18 California Administrative Code, CITY is designated as the lead agency for the projects that are
19 the subject matter of this Agreement.
20 7. HOLD HARMLESS AND INDEMNIFICATION. In contemplation of the
21 provisions of Section 895.2 of the California Government Code imposing certain tort liability
22 jointly upon public entities solely by reason of such entities being parties to an agreement as
' defined by Section 895 of the Code, the Parties hereto, pursuant to the authorization contained in
24 Section 895.4 and 895.6 of the Code, agree that each Party shall be liable for any damages
25 including, but not limited to, claims, demands, losses, liabilities, costs and expenses including
26 reasonable attorneys fees, resulting from the negligent or wrongful acts or omissions of their
27 employees or agents in the performance of this Agreement, and each Party shall indemnify,
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I defend and hold harmless the other Parties from such claims, demands, damages, losses or
2 liabilities for their negligence
3 8. INSURANCE. Without limiting or diminishing the CITY'S obligation to
4 indemnify or hold the COUNTY harmless, CITY shall procure and maintain or cause to be
5 maintained, at its sole cost and expense, the following insurance coverage's during the term of
6 this Agreement.
7 A. Workers' Compensation:
8 If the CITY has employees as defined by the State of California, the CITY shall maintain
9 statutory Workers' Compensation Insurance (Coverage A) as prescribed by the laws of the State
to
of California. Policy shall include Employers' Liability (Coverage B) including Occupational
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Disease with limits not less than $1,000,000 per person per accident. The policy shall be
12
endorsed to waive subrogation in favor of The County of Riverside, and, if applicable, to provide
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a Borrowed Servant/Alternate Employer Endorsement.
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B. Commercial General Liability:
15
16 Commercial General Liability insurance coverage, including but not limited to, premises
17 liability, contractual liability, products and completed operations liability, personal and
18 advertising injury, and cross liability coverage, covering claims which may arise from or out of
19 CITY 'S performance of its obligations hereunder. Policy shall name the County of Riverside, its
20 Agencies, Districts, Special Districts, and Departments, their respective directors, officers, Board
21 of Supervisors, employees, elected or appointed officials, agents or representatives as Additional
22 Insureds. Policy's limit of liability shall not be less than S1,000,000 per occurrence combined
23 single limit. If such insurance contains a general aggregate limit, it shall apply separately to this
24 agreement or be no less than two (2) times the occurrence limit.
25 C. Vehicle Liabilitv:
26 If vehicles or mobile equipment are used in the performance of the obligations under this
27 Agreement, then CITY shall maintain liability insurance for all owned, non-owned or lured
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I vehicles so used in an amount not less than $1,000,000 per occurrence combined single limit. If
2 such insurance contains a general aggregate limit, it shall apply separately to this agreement or
3 be no less than two (2) times the occurrence limit. Policy shall name the County of Riverside, its
4 Agencies, Districts, Special Districts, and Departments, their respective directors, officers, Board
5 of Supervisors, employees, elected or appointed officials, agents or representatives as Additional
6 Insureds.
7 D. General Insurance Provisions -All lines:
8 1) Any insurance carrier providing insurance coverage hereunder
9 shall be admitted to the State of California and have an A M BEST rating of not less than A: VIII
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(A:8) unless such requirements are waived, in writing, by the County Risk Manager. If the
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Courty's Risk Manager waives a requirement for a particular insurer such waiver is only valid
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for that specific insurer and only for one policy term.
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2) The CITY'S insurance carner(s) must declare its insurance self-
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insured retentions. If such self-insured retentions exceed $500,000 per occurrence such
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retentions shall have the prior written consent of the County Risk Manager before the
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commencement of operations under this Agreement. Upon notification of self insured retention
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unacceptable to the COUNTY, and at the election of the Country's Risk Manager, CITY 'S
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carriers shall either; 1) reduce or eliminate such self-insured retention as respects this Agreement
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with the COUNTY, or 2) procure a bond which guarantees payment of losses and related
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investigations, claims administration, and defense costs and expenses.
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3) CITY shall cause CITY'S insurance carrier(s) to furnish the
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County of Riverside with either 1) a properly executed original Certificate(s) of Insurance and
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certified original copies of Endorsements effecting coverage as required herein, and 2) if
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requested to do so orally or in writing by the County Risk Manager, provide original Certified
25
copies of policies including all Endorsements and all attachments thereto, showing such
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insurance is in full force and effect. Further, said Certificate(s) and policies of insurance shall
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contain the covenant of the insurance carrier(s) that thirty (30) days written notice shall be given
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I to the County of Riverside prior to any material modification, cancellation, expiration or
2 reduction in coverage of such insurance. In the event of a material modification, cancellation,
3 expiration, or reduction in coverage, this Agreement shall terminate forthwith, unless the County
4 of Riverside receives, prior to such effective date, another properly executed original Certificate
5 of Insurance and original copies of endorsements or certified original policies, including all
6 endorsements and attachments thereto evidencing coverage's set forth herein and the insurance
7 required herein is in frill force and effect. CITY shall not commence operations until the
8 COUNTY has been furnished original Certificate (s) of Insurance and certified original copies of
9 endorsements and if requested certified original policies of insurance including all
10 endorsements and any and all other attachments as required in this Section. An individual
11 authorized by the insurance carrier to do so on its behalf shall sign the original endorsements for
12 each policy and the Certificate of Insurance.
13 4) It is understood and agreed to by the parties hereto that the CITY'S
14 insurance shall be construed as primary insurance, and the COUNTY'S insurance and/or
15 deductibles and/or self-insured retention's or self-insured programs shall not be construed as
16 contributory.
17 5) If, during the term of this Agreement or any extension thereof,
18 there is a material change in the scope of services; or, there is a material change in the equipment
19 to be used in the performance of the scope of work which will add additional exposures (such as
20 the use of aircraft, watercraft, cranes, etc.); or, the term of this Agreement, including any
21 extensions thereof, exceeds five (5) years the COUNTY reserves the right to adjust the types of
22 insurance required under this Agreement and the monetary limits of liability for the insurance
23 coverage's currently required herein, if, in the County Risk Manager's reasonable judgment, the
24 amount or type of insurance carried by the CITY has become inadequate.
25 6) CITY shall pass down the insurance obligations contained herein
26 to all tiers of subcontractors working under this Agreement.
27 7) The insurance requirements contained in this Agreement may be
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I met with a program(s) of self-insurance acceptable to the COUNTY.
2 8) CITY agrees to notify COUNTY of any claim by a third party or
3 any incident or event that may give rise to a claim arising from the performance of this
4 Agreement.
5 9. RECORDS AND INSPECTIONS.
6 A. CITY shall establish and maintain records in accordance with 24 CFR Part
7 570, Part 85, OMB Circular A-87, A-133 and 24 CFR 91.105, as applicable, and as they relate to
8 the acceptance and use of federal funds under this Agreement.
9 B. CITY shall obtain an external audit in accordance with the U.S.
10 Department of Housing and Urban Development single audit regulations (24 CFR Part 44.6).
11 Audits shall usually be performed annually but not less frequently than every two years.
12 Nonprofit institutions and government agencies that expend less than $500,000 a year in
13 Federal awards are exempt from Federal audit requirements, but records must be available for
14 review by appropriate officials of the Federal grantor agency or subgranting entity. The audit
15 report shall be submitted to the COUNTY within 180 days after the end of the COUNTY'S
16 fiscal year.
17 C. CITY shall maintain a separate account for CDBG Entitlement funds
18 received as set forth in Exhibits (A and B).
19 D. CITY shall, during the normal business hours, make available to
20 COUNTY, the U.S. Department of Housing and Urban Development (HUD), or other authorized
21 representative, for the examination and copying, all of its records and other materials with
22 respect to matters covered by this Agreement.
2' E. CITY shall not retain any program income as defined in Section 570.500
24
of Title 24 of the Federal Code of Regulations. Said program income shall be used only for the
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activities that are the subject of this Agreement. Further, all provisions of this Agreement shall
26 apply to such activities.
27 F. The CITY shall ensure that at least fifty-one percent (51%) of the persons
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I benefiting from all CDBG-funded activities or projects designated as serving limited clientele
2 [570.208(a)(2)(i)] are of low and moderate-income and meet the program income guidelines
3 attached as Exhibits (A and B). The CITY and City's Sub-recipients must provide the required
4 income certification and direct benefit documentation.
5 10. COMPLIANCE WITH LAWS. CITY shall comply with all applicable federal,
6 state, and local laws, regulations, and ordinances and any amendments thereto and the federal
7 regulations and guidelines now or hereafter enacted pursuant to the Act. More particularly, CITY
8 is to comply with those regulations found in Part 85 and Part 570 of Title 24 of the Code of
9 Federal Regulations. CITY is to comply with OMB Circular A-87, or any subsequent
10 replacement. CITY is to abide by the provisions of the Community Development Block Grant
11 Manual, prepared by COUNTY and cited in the above-mentioned Cooperation Agreement.
12 CITY will comply with Section 3 of the Housing & Urban Development Act of 1968, as
13 amended, attached hereto as Exhibit "S". CITY will comply with the provisions of 24 CFR Part
14 570.200 0), attached as Exhibit"R," pertaining to inherently religious activities.
15 11. INDEPENDENT CONTRACTOR. CITY and its agents, servants, and employees
16 shall act at all times in an independent capacity during the term of this Agreement, and shall not
17 act as, shall not be, nor shall they in any manner be construed to be agents, officers, or
18 employees of the COUNTY.
19 12. TERMINATION.
20 A. CITY. CITY may not terminate this Agreement except upon express
21 written consent of COUNTY.
22 B. COUNTY. Notwithstanding the provisions of Paragraph 12a, COUNTY
23 may suspend or terminate this Agreement upon a thirty (30) day written notice to CITY of action
24 being taken and the reason for such action:
25 (1) In the event CITY fails to perform the covenants herein contained
26 at such times and in such manner as provided in this Agreement; and
27 (2) In the event there is a conflict with any federal, state or local law,
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I ordinance, regulation or rule rendering any of the provisions of this Agreement invalid or
2 untenable; or
3 (3) In the event the funding from the Department of Housing and
4 Urban Development referred to in Paragraphs 1 and 2 above is terminated or otherwise becomes
5 unavailable.
6 C. Upon suspension of this Agreement, CITY agrees to return any
7 unencumbered fiends which it has been provided by COUNTY. In accepting said funds,
8 COUNTY does not waive any claim or cause of action it may have against CITY for breach of
9 this Agreement.
10 D. Reversion of Assets
11 1. Upon expiration of this Agreement, the CITY shall transfer to the
12 COUNTY any CDBG funds on hand at the time of expiration of the Agreement as well as any
13 accounts receivable held by CITY which are attributable to the use of CDBG funds awarded
14 pursuant to this Agreement.
15 2. Any real property under the CITY'S control that was acquired or
16 improved in whole or in part with CDBG funds (including CDBG funds provided to the
17 SPONSOR in the form of a loan) in excess of$25,000 is either:
18 (i) Used to meet one of the National Objectives in Sec.
19 570.208 until five years after expiration of this agreement, or for such longer period of time as
20 determined to be appropriate by the COUNTY; or
21 (ii) Not used in accordance with Section (i) above, in which
22 event the SPONSOR shall pay to the COUNTY an amount equal to the current market value of
23 the property less any portion of the value attributable to expenditures of non-CDBG finds for the
24 acquisition of, or improvement to, the property.
25 13. NONDISCRIMINATION. CITY shall abide by Sections 570.601 and 570.602 of
26 Title 24 of the Federal Code of Regulations which requires that no person in the United States
27 shall on the grounds of race, color, national origin, or sex, be excluded from participation in, be
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I denied the benefits of, or be subjected to discrimination tinder any program or activity funded in
2 whole or in part with Community Development funds.
3 14. PROHIBITION AGAINST CONFLICTS OF INTEREST
4 A. CITY and its assigns, employees, agents, consultants, officers and elected
5 and appointed officials shall become familiar with and shall comply with the CDBG regulations
6 prohibiting conflicts of interest contained in 24 CFR 570.611, attached hereto as Exhibit "CI"
7 and by this reference incorporated herein.
8 B. CITY and its assigns, employees, agents, consultants, officers, and elected
9 and appointed officials shall become familiar with and shall comply with Section A-I I of the
10 County's CDBG Policy manual, attached hereto as Exhibit "Cl" and by this reference
11 incorporated herein.
12 C. CITY understands and agrees that no waiver of exception can be granted
13 to the prohibition against conflict of interest except upon written approval of HUD pursuant to
14 24 CFR 570.611 (d). Any request by CITY for an exception shall first be reviewed by COUNTY
15 to determine whether such request is appropriate for submission to HUD. In determining whether
16 such request is appropriate for submission to I-IUD, COUNTY will consider the factors listed in
17 24 CFR 570.611 (e).
18 D. Prior to any finding under this Agreement, CITY shall provide COUNTY
19 with a list of all employees, agents, consultants, officers and elected and appointed officials who
20 are in a position to participate in a decision making process, exercise any functions or
21 responsibilities, or gain inside information with respect to the CDBG activities funded under this
22 Agreement. CITY shall also promptly disclose to COUNTY any potential conflict, including
23 even the appearance of conflict that may arise with respect to the CDBG activities funded under
24 this Agreement.
25 E. Any violation of this section shall be deemed a material breach of this
26 Agreement, and the Agreement shall be immediately terminated by the COUNTY.
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1 15. PROJECT ELIGIBILITY. As to CITY or its claimants, COUNTY shall bear no
2 liability for any later determination by the United States Government, the Department of
3 Housing and Urban Development or any other person or entity that CITY is or is not eligible
4 under 24 CFR Part 570 to receive CDBG funds.
5 16. USE OF PROPERTY. Whenever federal CDBG funds or program income are
6 used, in whole or in part, for the purchase of equipment or personal property, the property shall
7 not be transferred from its originally funded use, by CITY or sub-recipient, for a period of five
8 (5) years from the close-out date of the grant from which CDBG assistance was provided. The
9 CITY shall maintain a current inventory for COUNTY motutoring and review.
10 17. EMPLOYMENT OPPORTUNITIES TO BE CAUSED BY PROJECT. CITY
11 agrees to notify and to require any lessee or assignee to notify Riverside County Workforce
12 Development Center of any and all job openings that are caused by this project.
13
14 18, PUBLICITY. Any publicity generated by CITY for the project funded pursuant to
15 this Agreement, during the term of this Agreement, will make reference to the Contribution of
16 the County of Riverside, the Economic Development Agency, and the Community Development
17 Block Grant Program in making the project possible.
18 19. PROGRAM MONITORING AND EVALUATION. CITY and its sub-recipients
19 shall be monitored and evaluated in terms of its effectiveness and timely compliance with the
20 provisions of this Agreement and the effective and efficient achievement of the Program
21 Objectives. Quarterly reports shall be due on the last day of the month immediately following the
22 end of the quarter being reported. The quarterly written reports shall include, but shall not be
23 limited to, the following data elements:
24 A. Title of program, listing of components, description of
25 activities/operations.
26 B. The projected goals, indicated numerically, and also the goals achieved
27 (for each report period). In addition, identify by percentage and description, the progress
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I achieved towards meeting the specified goals and identify any problems encountered in meeting
2 goals.
3 C. If the CDBG-funded Activity meets a National Objective under 24 CPR
4 570,208 (a)(2)(i), CITY will report the following:
5 1) Total number of direct beneficiaries (clientele served) with
6 household incomes at:
7 • Above 80% MHI
8 • Between 50% and 80% MHI (Low-Income)
9 • Between 30% and 50% MHI (Very Low-Income)
10 • Less than 30% MHI (Extremely Low-Income)
11 2) Total number and percent (%) of the clientele served that have
12 household incomes at or below 80% MHI
13 3) Racial ethnicity of clientele
14 4) Number of Female-Headed Households
15 D. CITY and its sub-recipients shall report beneficiary statistics monthly to
16 EDA on the pre-approved Direct Benefit Form and Self-Certiftcation Form (certifying income,
17 family size, and racial ethnicity) as required by HUD. Updated forms are to be provided to CITY
18 by EDA should HUD implement changes during the term of this agreement. CITY and sub-
19 recipients will collect and provide all necessary data required by HUD pertaining to the Specific
20 Outcome Indicators as identified in the CPD Outcome Performance Measurement System.
21 20. SOURCE OF FUNDING. CITY acknowledges that the source of funding
22 pursuant to this Agreement is Community Development Block Grant (CFDA 14.218).
23 21. ENTIRE AGREEMENT. It is expressly agreed that this Agreement together with
24 the cooperation Agreement between the parties, embodies the entire agreement of the parties in
25 relation to the subject matter thereof, and that no other Agreement or understanding, verbal or
26 otherwise, relative to this subject matter, exists between the parties at the time of execution.
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1 22. MINISTERIAL ACTS. The Assistant County Executive Officer/EDA or
2 designee(s) are authorized to take such ministerial actions as may be necessary or appropriate to
3 implement the terms, provisions, and conditions of this Agreement as it may be amended from
4 time to time by COUNTY.
5 23. PRIOR AUTHORIZATION. CITY shall obtain COUNTY's written approval
6 from the Economic Development Agency prior to implementing the following "high risk"
7 activities f lded with CDBG assistance:
8 A. Construction of public facilities (project plans and specifications);
9 B. Acquisition of real property;
10 C. Historic Preservation;
11 D. Relocation; and
12 F. Economic Development
13 23. MODIFICATION OF AGREEMENT. This Agreement may be modified or
14 amended only by a writing signed by the duly authorized and empowered representative of
s 15 COUNTY and CITY respectively.
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3 IN WITNESS WHEREOF, the COUNTY and the CITY have executed this Agreement as
4 of the date listed below.
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6 DATED:
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8 COUNTY OF RIVERSIDE
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10 By:
Suzanne Holland
I I Assistant Director of EDA
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14 CITY OF SAN JACINTO
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16 By:
17 Mayor
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EXHIBIT A
Pile No.: 3.SJ.01-12
SUPPLEMENTAL AGREEMENT
SCOPE OF WORK
(NON-PUBLIC SERVICE)
I. GENERAL INFORMATION
CITY NAME: City of San Jacinto
ADDRESS: 595 S. San Jacinto Avenue
San Jacinto, CA 92583
PROGRAM CONTACTS: Sharon Paisley
PHONE: (951) 487-7330 FAX: (951) 654-3728
E-MAIL:
PROJECT NAME: Targeted Code Enforcement
PROJECT LOCATION: San Jacinto. CA
LEVEL OF ENVIRONMENTAL CLEARANCE:
CDBG ELIGIBILITY CODE:
PROJECT FUNDING SUMMARY: S203,179
Project to be administered by County (EDA) on behalf of City: YES ❑ NO
II. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2012-2013 Community Development Block Grant
for the Targeted Code Enforcement in a manner satisfactory to the County of Riverside and
consistent with any standards required as a condition of providing these fields. Such program
will include the following activities eligible under the Community Development Block Grant
program:
Activity #1 CDBG funds will be used by the City to conduct enhanced code enforcerent
activities in targeted areas. The purpose of code enforcement is to enhance
public safety and the quality of life, through fair enforcement of laws and codes,
in partnership with communities, as well as, private and publically-funded
improvements, rehabilitation, and other services. The CDBG funded code
enforcement will target dangerous and substandard structures, zoning violations,
Page I of 6
EXHIBIT A
File No.: 3.SJ.01-12
and other health and saf of issues. Eligible costs include the salaries, overhead
and related expenses of code enforcernew officers.
B. National Objective
All activities funded with CDBG fiords must comply with one of more of the CDBG program's
National Objective Criteria as required under 24 CFR 570.200(a)(2). City certifies that the
activity(ies) carried out under this Agreement will meet the following National Objective:
National Objective Criteria: 570.208 (a)(1)(i)
CFR Reference: Low Mod Area
C. Levels of Accomplishment—Goals and Performance Measures
The City agrees to implement and complete the following activity(ies):
Activity #1; Target dangerous and substandard structures, zoning violations, and other health and safety
issues, and enhance public safety and the quality of life, through fair enforcement of laws and codes
CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives (select one): ❑ Creating Suitable Living Environments
❑ Providing Decent Affordable Housing
❑ Creating Economic Opportunities
Outcome (select one): ❑ Availability/Accessibility
❑ Affordability
❑ Sustainability (promoting livable or viable communities)
D. City Capacity
By executing this Supplemental Agreement, the City certifies that it has the appropriate number of
trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and
permitting, and sufficient amount of financial resources necessary to implement and carry out the
activities funded with CDBG funds.
City will immediately notify County of any significant changes in organizational management,
assigned staff, change in facilities, loss or change in matching funds, or any other event that could
potentially impact the City or subrecipient's performance under this Agreement. Any changes in
the above items are subject to the prior approval of the County.
E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against
goals and performance standards as stated above. Substandard performance as determined by the
Page 2 of 6
EXHIBIT A
File No.: 3.SJ.01-12
County will constitute noncompliance with this Agreement. If action to correct such substandard
performance is not taken by the City within a reasonable period of time after being notified by
the County, contract suspension or termination procedures will be initiated.
F. Program Budget
It is expressly agreed and understood that the total amount to be paid by the County guider this
Agreement shall not exceed $203,179 Drawdowns for the payment of eligible expenses shall be
made against the line item budgets specified in this Section and in accordance with performance.
Payments may be contingent upon certification of the Subrecipient's financial management
system in accordance with the standards specified in 24 CFR 84.21.
The County may require a more detailed budget breakdown than the one contained herein, and
the City shall provide such supplementary budget information in a timely fashion in the form and
content prescribed by the County. Any amendments to the budget must be approved in writing
by both the County and City.
Line Item
Design/Engineering Costs
Project Administration Costs
Construction Costs
Acquisition Costs
Relocation Costs ❑
Capital Equipment Costs
Code Enforcement
Clearance ❑
Interim Assistance ❑
Other: ❑ —
Page 3 of 6
EXHIBIT A
File No.: 3.SJ.01-12
G. Total Amount of Non- CDBG Leveraging
TYPE SOURCE AMOUNT� SOURCE AMOUNT SOURCE AMOUNI TOTAL
$0
m
STAELOCA r T $0
PRIVATE $0
'QTHFR $0
TOTAL: $0
III. ADMINISTRATIVE REQUIREMENTS
A. Accounting Standards
The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the
accounting principles and procedures required therein, utilize adequate internal controls,
and maintain necessary source documentation for all costs incurred.
B. Cost Principles
The City shall administer its program in conformance with OMB Circulars A-122, "Cost
Principles for Non-Profit Organizations," A-21, "Cost Principles for Educational
Institutions," or OMB Circular A-87, "Cost Principles for State, Local and Tndian Tribal
Governments as applicable. These principles shall be applied for all costs incurred
whether charged on a direct or indirect basis.
C. Documentation and Record Keeping
I. Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations specified
in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement.
Such records shall include but not be limited to:
i Records providing a fill description of each activity undertaken;
ii. Records demonstrating that each activity undertaken meets one of the
National Objectives of the CDBG program;
iii. Records required to determine the eligibility of activities;
iv. Records required to docimient the acquisition, improvement, use or
disposition of real property acquired or improved with CDBG assistance;
V. Records docimienting compliance with the fair housing and equal
opportunity components of the CDBG program;
vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21-28;
and
vii. Other records necessary to document compliance with Subpart K of 24
CFR Part 570.
Page 4 of 6
EXHIBIT A
File No.: 3.SJ.01-12
2. Records Retention
The City shall retain all financial records, supporting documents, statistical records, and
all other records pertinent to the Agreement for a period of five (5) years. The retention
period begins on the date of the submission of the County's amival performance and
evaluation report to IIUD in which the activities assisted under the Agreement are
reported on for the final time. Notwithstanding the above, if there is litigation; claims,
audits, negotiations or other actions that involve any of the records cited and that have
started before the expiration of the five-year period, then such records must be retained
until completion of the actions and resolution of all issues, or the expiration of the five-
year period, whichever occurs later.
3. Client Data
The City shall maintain client data demonstrating client eligibility for services provided.
Such data shall include, but not be limited to, client name, address, income level or other
basis for determining eligibility; and description of service provided. Such information
shall be made available to County monitors or their designees for review upon request.
4. Disclosure
The City understands that client information collected under this contract is private and
the use or disclosure of such information, when not directly connected with the
administration of the County's or City's responsibilities with respect to services provided
under this contract; is prohibited by applicable federal and State law unless written
consent is obtained from such person receiving service and, in the case of a minor, that of
a responsible parent/guardian.
5. Close-outs
The City's obligation to the County shall not end until all close-out requirements are
completed. Activities during this close-out period shall include, but are not limited to:
making final payments, disposing of program assets (including the return of all unused
materials, equipment, unspent cash advances; program income balances, and accounts
receivable to the County), and determining the custodianship of records. Not
withstanding the foregoing, the terms of this Agreement shall remain in effect during any
period that the City has control over CDBG finds, including program income.
6. Audits & Inspections
All City records with respect to any matters covered by this Agreement shall be made
available to the County, HUD, and the Controller General of the United States or any of
their authorized representatives, at any time during normal business hours, as often as
deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant
data. Any deficiencies noted in audit reports must be fully cleared by the City within 30
days after receipt by the City. Failure of the City to comply with the above audit
requirements will constitute a violation of this contract and may result in the withholding
of future payments. The City hereby agrees to have an annual agency audit conducted in
accordance with current County policy concerning subrecipient audits and OMB Circular
A-133.
Page 5 of 6
EXHIBIT A
File No.: 3.SJ.01-12
IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre-approved by County, City will perform and complete the activities described
in Section II in conformance with the schedule of tasks and milestones listed below:
Tasks /Milestone Start Date Completion Date
Attend Mandatory Cooperating August 2012 August 2012
City Training
Implement Project Activities Upon Notification from EDA
Execute Supplemental Agreement August 2012 September 2012
& Notice to Incur Cost
Tasks /Milestone Start Date Completion Date
Submit Quarterly Performance October 15, 2012
Reports to County January 15, 2013
April 15, 2013
July 31, 2013
County Monitoring of City To be determined by Program Manager
Program/Performance
Specific Project Activities To be determined by Program Manager
City Submits Reimbursement
Requests
Monthly Submittal ® June 6, 2012
Other Schedule ❑
CDBG-funded Project Complete -------- June 30, 2013
V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS
Page 6 of 6
EXHIBIT B
File No.: 3.SJ.02-12
SUPPLEMENTAL AGREEMENT
SCOPE OF WORK
(NON-PUBLIC SERVICE)
I. GENERAL INFORMATION
CITY NAME: Citv of San Jacinto
ADDRESS: 595 S. San Jacinto Avenue
San Jacinto, CA 92583
PROGRAM CONTACTS: Sharon Paisley, Development Director
PHONE: FAX:
E-MAIL:
PROJECT NAME: San Jacinto Downtown Street Improvement Project
PROJECT LOCATION: Various low mod tracts in San Jacinto
LEVEL OF ENVIRONMENTAL CLEARANCE:
CDBG ELIGIBILITY CODE:
PROJECT FUNDING SUMMARY: S406,358
Project to be administered by County(EDA) on behalf of City: YES ❑ NO
II. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2012-2013 Community Development Block Grant for the
San Jacinto Downtown Street Improvement Project in a manner satisfactory to the County of
Riverside and consistent with any standards required as a condition of providing these funds. Such
program will include the following activities eligible under the Community Development Block Grant
program:
Activity 41 CDBG funds will he used by the City of San Jacinto to construct street improvements
that consist of pavement, grinding, overlay, and striping, as well as minor curb/gutter
and sidewalk enhancements in low/moderate income areas of the chy.
Page 1 of 6
EXHIBIT B
File No.: 3.SJ.02-12
B. National Objective
All activities funded with CDBG funds must comply with one of more of the CDBG program's National
Objective Criteria as required Linder 24 CFR 570.200(a)(2). City certifies that the activity(ies) carried out
under this Agreement will meet the following National Objective:
National Objective Criteria: 570.208 (a)(1)(i)
CFR Reference: Low Mod Area
C. Levels of Accomplishment—Goals and Performance Measures
The City agrees to implement and complete the following activity
Activity#1
Activity#2
CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives(select one): ® Creating Suitable Living Environments
❑ Providing Decent Affordable Housing
❑ Creating Economic Opportunities
Outcome (select one): ❑ Availability/Accessibility
❑ Affordability
® Sustainability (promoting livable or viable communities)
D. City Capacity
By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained
and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and
sufficient amount of financial resources necessary to implement and carry out the activities funded with
CDBG funds.
City will immediately notify County of any significant changes in organizational management, assigned
staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact
the City or subrecipient's performance under this Agreement.
Any changes in the above items are subject to the prior approval of the County.
E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against goals and
performance standards as stated above. Substandard performance as determined by the County will
constitute noncompliance with this Agreement. If action to correct such substandard performance is not
taken by the City within a reasonable period of time after being notified by the County, contract
suspension or termination procedures will be initiated.
Page 2 of 6
EXHIBIT B
File No.: 3.57.02-12
F. Program Budget
It is expressly agreed and understood that the total amount to be paid by the County under this Agreement
shall not exceed $406,358 Drawdowns for the payment of eligible expenses shall be made against the line
item budgets specified in this Section and in accordance with performance. Payments may be contingent
upon certification of the Subrecipient's financial management system in accordance with the standards
specified in 24 CFR 84.21.
The County may require a more detailed budget breakdown than the one contained herein, and the City
shall provide such supplementary budget information in a timely fashion in the form and content
prescribed by the County. Any amendments to the budget must be approved in writing by both the
County and City.
Line Item
Design/Engineering Costs
Project Administration Costs ❑
Construction Costs
i
Acquisition Costs ❑
Relocation Costs ❑
Capital Equipment Costs ❑
j Code Enforcement ❑
Clearance ❑
Interim Assistance ❑
Other: ❑
Page 3 of 6
EXIIIBIT B
File No.: 3.SJ.02-12
G. Total Amount of Non- CDBG Leveraging
TYPE SOURCE AMOUNT i SOURCE AMOUNT SOURCE AMOUNT TOTAL
FEDERAL $0
r
STATE/LOCAL, $0
r--
PRNATE $0
"OT>FIER. $0
TOTAL: SO
III. ADMINISTRATIVE REQUIREMENTS
A. Accounting Standards
The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the
accounting principles and procedures required therein, utilize adequate internal controls, and
maintain necessary source documentation for all costs incurred.
B. Cost Principles
The City shall administer its program in conformance with OMB Circulars A-122, "Cost
Principles for Non-Profit Organizations," A-21, "Cost Principles for Educational Institutions," or
OMB Circular A-87, "Cost Principles for State, Local and Indian Tribal Governments as
applicable. These principles shall be applied for all costs incurred whether charged on a direct or
indirect basis.
C. Documentation and Record Keeping
1. Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations specified in 24
CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records
shall include but not be limited to:
i Records providing a full description of each activity undertaken;
ii. Records demonstrating that each activity undertaken meets one of the National
Objectives of the CDBG program;
iii. Records required to determine the eligibility of activities;
iv. Records required to document the acquisition, improvement, use or disposition of
real property acquired or improved with CDBG assistance;
V. Records documenting compliance with the fair housing and equal opportunity
components of the CDBG program;
vi. Financial records as required by 24 CFR 570.502, and 24 CPR 84.21-28; and
vii. Other records necessary to document compliance with Subpart K of 24 CFR Part
570.
Page 4 of 6
EXHIBIT B
File No.: 3.SJ.02-12
2. Records Retention
The City shall retain all financial records, supporting documents, statistical records, and all other
records pertinent to the Agreement for a period of five (5) years. The retention period begins on
the date of the submission of the County's annual performance and evaluation report to HUD in
which the activities assisted under the Agreement are reported on for the final time.
Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that
involve any of the records cited and that have started before the expiration of the five-year period,
then such records must be retained until completion of the actions and resolution of all issues, or
the expiration of the five-year period, whichever occurs later.
3. Client Data
The City shall maintain client data demonstrating client eligibility for services provided. Such
data shall include, but not be limited to, client name, address, income level or other basis for
determining eligibility, and description of service provided. Such information shall be made
available to County monitors or their designees for review upon request.
4. Disclosure
The City understands that client information collected under this contract is private and the use or
disclosure of such information, when not directly connected with the administration of the
County's or City's responsibilities with respect to services provided Linder this contract, is
prohibited by applicable federal and State law unless written consent is obtained from such
person receiving service and, in the case of a minor, that of a responsible parent/guardian.
5. Close-outs
The City's obligation to the County shall not end until all close-out requirements are completed.
Activities during this close-out period shall include, but are not limited to: making final
payments, disposing of program assets (including the return of all unused materials, equipment,
unspent cash advances, program income balances, and accounts receivable to the County), and
determining the custodianship of records. Not withstanding the foregoing, the terms of this
Agreement shall remain in effect during any period that the City has control over CDBG funds,
including program income.
6. Audits & Inspections
All City records with respect to any matters covered by this Agreement shall be made available to
the County, HUD, and the Controller General of the United States or any of their authorized
representatives, at any time during normal business hours, as often as deemed necessary, to audit,
examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit
reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the
City to comply with the above audit requirements will constitute a violation of this contract and
may result in the withholding of future payments. The City hereby agrees to have an annual
agency audit conducted in accordance with current County policy concerning subrecipient audits
and OMB Circular A-li3.
Page 5 of 6
EXHIBIT B
File No.: 3.SJ.02-12
IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre-approved by County, City will perform and complete the activities described in
Section 11 in conformance with the schedule of tasks and milestones listed below:
Tasks /Milestone Start Date Completion Date
Attend Mandatory Cooperating August 2012 August 2012
City Training
Implement Project Activities Upon Notification from EDA
Execute Supplemental Agreement August 2012 September 2012
&Notice to Incur Cost
Tasks/Milestone Start Date Completion Date
Submit Quarterly Performance October 15, 2012
Reports to County January 15, 2013
April 15, 2013
July 31, 2013
County Monitoring of City To be determined by Program Manager
Program/Performance
Specific Project Activities
1. City executes Supplemental Agreement; receives authorization to incur cost letter
2. City prepares final construction bid documents for EDA review and approval
3. EDA authorizes City to advertise for bids
4. EDA reviews and approves bidding process
5. City awards construction contract(s)
6. City and EDA conduct "pre-construction meeting"
7. EDA authorizes City to issue "Notice to Proceed"
City Submits Reimbursement
Requests
Monthly Submittal ❑
Other Schedule
CDBG-funded Project Complete TBD
Page 6 of 6
EXHIBIT CI
Prohibition Against Conflicts of Interest
Page 1 of 4
570 . 611 Conflict of interest.
(a) Applicability.
(1) In the procurement of supplies, equipment, construction, and
services by recipients , and by subrecipients (including those specified at §
570 .204 (c) ) , the conflict of interest provisions in 24 CFR 85. 36 and OMB
Circular A 110, respectively, shall apply.
(2) In all cases not governed by 24 CFR 85 . 36 and OMB Circular A-110,
the provisions of this section shall apply. Such cases include the
acouisition and disposition of real property and the provision of assistance
by the recipient, by its subrecipients, or to individuals, businesses and
other private entities under eligible activities which authorize such
assistance (e. g. , rehabilitation, preservation, and other improvements of
private properties or facilities pursuant to § 570 .202, or grants, loans and
other assistance to businesses, individuals and other private entities
pursuant to § 570-203, § 570 .204 or § 570 . 455) .
(b) Conflicts prohibited. Except for the use of CDBG funds to pay salaries
and other related administrative or personnel costs, the general rule is
t
that no persons described in paragraph (c) of this section who exercise or
have exercised any functions or responsibilities with respect to CDBG
activities assisted under this part 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 personal or financial interest or benefit from a
CDBG assisted activity, or have an interest in any contract, subcontract or
agreement with respect thereto, or the proceeds thereunder, either for
themselves or those with whom they have family or business ties, during
their tenure or for one year thereafter. For the UDAG program, the above
restrictions shall apply to all activities that are a part of the UDAG
project, and shall cover any such interest or benefit during, or at any time
after, such person' s tenure .
(c) Persons covered. The conflict of interest provisions of paragraph (b)
of this section apply to any person who is an employee, agent, consultant,
officer, or elected official or appointed official of the recipient, or of
any designated public agencies, or subrecipients which are receiving funds
under this part.
(d) Exceptions__ threshold requirements . Upon the written request of the
recipient, HUD may grant an exception to the provisions of paragraph (b) of
this section on a case-by-case basis when it determines that such an
exception will serve to further the purposes of the Act and the effective
and efficient administration of the recipient ' s program or project . An
exception may be considered only after the recipient has provided the
following:
EXHIBIT CI
Prohibition Against Conflicts of Interest
Page 2 of 4
(1) A disclosure of the nature of the conflict, accompanied by an
assurance that there has been public disclosure of the conflict and a
description of how the public disclosure was made; and
(2) An opinion of the recipient' s attorney that the interest for which
the exception is sought would not Violate State or local law.
(e) Factors to be considered for exceptions . In determining whether to grant
a requested exception after the recipient has satisfactorily met the
requirements of paragraph (d) of this section, HUD shall consider the
cumulative effect of the following factors, where applicable:
(1) Whether the exception would provide a significant cost benefit or an
essential degree of expertise to the program or project which would otherwise
not be available;
(2) Whether an opportunity was provided for open competitive bidding or
negotiation;
(3) Whether the person affected is a member of a group or class of low
or moderate income persons intended to be the beneficiaries of the assisted
activity, and the exception will permit such person to receive generally the
same interests or benefits as are being made available or provided to the group
or class;
(4) Whether the affected person has withdrawn from his or her functions
or responsibilities, or the decision making process with respect to the
specific assisted activity in question;
(5) Whether the interest or benefit was present before the affected
person was in a position as described in paragraph (b) of this section;
(6) Whether undue hardship will result either to the recipient or the
person affected when weighed against the public interest served by avoiding the
prohibited conflict; and
(7) Any other relevant considerations .
EXHIBIT CI
Prohibition Against Conflicts of Interest
Page 3 of 4
Community Development Block Grant
Policy Manual
I . D. � A-11
(pg. 1 of 2)
TOPIC: CONFLICT OF INTEREST CODED
RIVERSIDE COUNTY
ECONOMIC DEVELOPMENT AGENCY
DATE: October 1989
This Conflict of Interest Code is written to comply with Federal Regulations
(24 CFR Part 85) . These Regulations . "Administrative Requirements for Grants
and Cooperative Agreements to State, Local and Federally Recognized Indian
Tribal Governments" require that grantees and sub-grantees will maintain a
written code of standards of conduct governing the performance of their
employees engaged in the award and administration of contracts .
1) No employee, officer or agent of the grantee shall participate in the
selection, in the award or in the administration of a contract supported by
Federal Funds if a conflict of interest, real or apparent, would be involved.
2) Such a conflict will arise when:
i) The employee, officer or agent;
ii) Any member of the immediate family;
iii) His/Her partners, or;
iv) An organization which employs, or is about to employ any of the
above has a financial or other interest in the firm' s selection
for award.
3) The grantee ' s or sub-grantee ' s officers, employees or agents will neither
solicit nor accept gratuities, favors or anything of monetary value from
contractors or parties to sub-agreements except as noted in Section 4 .
4) A grantee' s or sub-grantee' s officers, employees or agents will be presumed
to have a financial interest in a business if their financial interest exceeds
the following:
i) Any business entity in which the official has a direct or indirect
investment worth one thousand dollars ($1, 000) or more.
ii) Any real property in which the official has a direct or indirect
interest worth one thousand dollars ($1, 000) or more.
EXHIBIT CI
Prohibition Against Conflicts of Interest
Page 4 of 4
Community Development Block Grant
Policy Manual
I . D. 4 A-11
(pg. 2 of 2)
TOPIC: CONFLICT OF INTEREST CODE
RIVERSIDE COUNTY
ECONOMIC DEVELOPMENT AGENCY
DATE : October 1989
iii) Any source of income, other than gifts and other than
loans by a commercial lending institution in the regular
course of business on terms available to the public
without regard to official status, aggregating two
hundred fifty dollars ($250) or more in value provided
to, received by or promised to the official within 12
months prior to the time when the decision is made.
iv) Any business entity in which the official is a director,
officer, partner, trustee, employee, or holds any
position of management.
v) Any donor of, or any intermediary or agent for a donor
of, a gift or gifts aggregating two hundred fifty
dollars ($250) or more in value provided to, received
by, or promised to the official within 12 months prior
to the time when the decision is made .
5) For purposes of Section 4, indirect investment or interest means any
investment or interest owned by the spouse or dependent child of an
official, by an agent on behalf" of an official, or by a business
entity or trust in which the official, the official ' s agents,
spouse, and dependent children own directly, indirectly, or
beneficially a 10-percent interest or more.
EXHIBIT "R"
Constitutional Prohibition
In accordance with First Amendment Church/State Principles, as a general rule,
CDBG/ESG assistance may not be used for religious activities or provided to primarily
religious entities for any activities, including secular activities. The following
restrictions and limitations therefore apply to the use of CDBG/ESG funds .
(1) CDBG/ESG funds may not be used for the acquisition of property or the
construction or rehabilitation (including historic preservation and removal of
architectural barriers) of structures to be used for religious purposes or which will
otherwise promote religious interests. This limitation includes the acquisition of
property for ownership by primarily religious entities and the construction or
rehabilitation (including historic preservation and removal of architectural
barriers) of structures owned by such entities (except as permitted under paragraph
(j ) (2) of this section with respect to rehabilitation and under paragraph (j ) (4) of
this section with respect to repairs undertaken in connection with public services)
regardless of the use to be made of the property or structure . Property owned by
primarily religious entities may be acquired with CDBG/ESG funds at no more than fair
market value for a non-religious use .
(2) CDBG/ESG funds may be used to rehabilitate buildings owned by primarily
religious entities to be used for a wholly secular purpose under the following
conditions:
(i) The building (or portion thereof) that is to be improved with the
>DBG/ESG assistance has been leased to an existing or newly-established wholly
secular entity (which may be an entity established by the religious entity) ;
(ii) The CDBG/ESG assistance is provided to the lessee (and not the
lessor) to make the improvements;
(iii) The leased premises will be used exclusively for secular purposes
available to persons regardless of religion;
(iv) The lease payments do not exceed the fair market rent of the
premises as they were before the improvements are made;
(v) The portion of the cost of any improvements that also serve a non-
leased part of the building will be allocated to and paid for by the lessor;
(vi) The lessor enters into a binding agreement that unless the lessee,
or a qualified successor lessee, retains the use of the leased premises for a wholly
secular purpose for at least the useful life of the improvements, the lessor will pay
to the lessee an amount equal to the residual value of the improvements;
(vii) The lessee must remit the amount received from the lessor under
subparagraph (2) (vi) of this section to the recipient or subrecipient from which the
CDBG/ESG funds were derived.
EXHIBIT "R"
Constitutional Prohibition
Page 2
The lessee can also enter into a management contract authorizing the lessor
religious entity to use the building for its intended secular purpose, e.g. , homeless
shelter, provision of public services. In such case, the religious entity must agree
in the management contract to carry out the secular purpose in a manner free form
religious influences in accordance with the principles set forth in paragraph (j ) (3)
of this section.
(3) As a general rule, CDBG/ESG funds may be used for eligible public services
to be provided through a primarily religious entity, where the religious entity
enters into an agreement with the recipient or subrecipient from which the CDBG/ESG
funds are derived that, in connection with the provision of such services :
(i) It will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or give preference
in employment to persons on the basis of religion.
(ii) It will not discriminate against any person applying for such public
services on the basis of religion and will not limit such services or give preference
to persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct no
religious worship or services, engage in no religious proselytizing, and exert no
Dther religious influence in the provision of such public services;
(iv) The portion of a facility used to provide the public services shall
contain no religious symbols or decorations, other than those permanently affixed to
or part of the structure.
(4) Where the public services provided under paragraph (j ) (3) of this section
are carried out on property owned by the primarily religious entity, CDBG/ESG funds
may also be used for minor repairs to such property which are directly related to
carrying out the public services where the cost constitutes in dollar terms only an
incidental portion of the CDBG/ESG expenditure for the public services .
EXHIBIT "S"
Page 1 of 2
Economic Opportunities for Section 3 Residents and Section 3 Business Concerns
Sec . 135 . 38 Section 3 clause .
All Section 3 covered contracts shall include the following clause (referred to
as the Section 3 Clause) :
A. The work to be performed under this contract is subject to the
requirements of Section 3 of the Housing and Urban Development Act of 1968, as
amended, 12 U. S. C. 1701u (Section 3) . The purpose of Section 3 is to ensure that
employment and other economic opportunities generated by HUD assistance or HUD-
assisted projects covered by Section 3, shall, to the greatest extent feasible,
be directed to low- and very low-income persons, particularly persons who are
recipients of HUD assistance for housing.
B. The parties to this contract agree to comply with HUD' s regulations in
24 CFR part 135, which implement Section 3 . As evidenced by their execution of
this contract, the parties to this contract certify that they are under no
contractual or other impediment that would prevent them from complying with the
part 135 regulations.
C. The contractor agrees to send to each labor organization or
representative of workers with which the contractor has a collective bargaining
agreement or other understanding, if any, a notice advising the labor
organization or workers ' representative of the contractor' s commitments under
this Section 3 clause, and will post copies of the notice in conspicuous places
at the work site where both employees and applicants for training and employment
positions can see the notice . The notice shall describe the Section 3 preference,
shall set forth minimum number and job titles subject to hire, availability of
apprenticeship and training positions, the qualifications for each; and the name
and location of the person (s) taking applications for each of the positions; and
the anticipated date the work shall begin.
D. The contractor agrees to include this Section 3 clause in every
subcontract subject to compliance with regulations in 24 CFR part 135, and agrees
to take appropriate action, as provided in an applicable provision of the
subcontract or in this Section 3 clause, upon a finding that the subcontractor is
in violation of the regulations in 24 CFR part 135 . The contractor will not
Subcontract with any subcontractor where the contractor has notice or knowledge
that the subcontractor has been found in violation of the regulations in 24 CFR
part 135 .
EXHIBIT "S"
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E. The contractor will certify that any vacant employment positions,
including training positions, that are filled (1) after the contractor is
selected but before the contract is executed, and (2) with persons other than
those to whom the regulations of 24 CFR part 135 require employment opportunities
to be directed, were not filled to circumvent the contractors obligations under
24 CFR part 135 .
F. The contractor will certify that any vacant employment positions,
including training positions, that are filled (1) after the contractor is
selected but before the contract is executed, and (2) with persons other than
those to whom the regulations of 24 CFR part 135 require employment opportunities
to be directed, were not filled to circumvent the contractor' s obligations under
24 CFR part 135 .
G. Noncompliance with HUD' s regulations in 24 CFR part 135 may result in
sanctions, termination of this contract for default, and debarment or suspension
from future HUD assisted contracts .
H. With respect to work performed in connection with Section 3 covered
ndian housing assistance, Section 7 (b) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450e) also applies to the work to be
performed under this contract. Section 7 (b) requires that to the greatest extent
feasible (i) preference and opportunities for training and employment shall be
given to Indians, and (ii) preference in the award of contracts and subcontracts
shall be given to Indian organizations and Indian-owned Economic Enterprises.
Parties to this contract that are subject to the provisions of Section 3 and
Section 7 (b) agree to comply with Section 3 to the maximum extent feasible, but
not in derogation of compliance with Section 7 (b) .