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'ONSENT CALENDAR NO. 8
1-21-91
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DATE: JANUARY 21, 1991 lj
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: PROPOSED CONTRACTS WITH THE COUNTY OF ORANGE FOR PROVISION OF
REHABILITATION OF PRIVATE PROPERTIES AND PUBLIC FACILITIES AND
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PROGRAM
RECOMMENDATION
It is recommended that the City Council approve the attached
contracts as submitted.
BACKGROUND
Enclosed are the proposed contracts between the City of Tustin and
the County of Orange which implements the City's 16th Year (Federal
Fiscal Year 1990-91) Housing and Community Development (HCD) Block
Grant Application described as follows:
° Public Facilities and Improvements (P15.40)
Rehabilitation of Private Properties (P15.10)
The Orange County Board of Supervisors on May 16, 1990 approved the
City's 16th Year HCD Application specifically in the following
dollar amounts:
$65,000 for Residential Rehabilitation
$40,000 Public Facilities & Improvements Orange Street
The Residential Rehabilitation funds ($65,000) will be utilized to
implement the City's Housing Rehabilitation Program which will
provide low interest loans, deferred payment loans, grants or
rebates for home improvement of privately owned properties in the
City's Target Area and spot housing rehabilitation within the
City's boundaries in accordance with the County's Home Improvement
Program.
The Public Facilities and Improvements funds ($40,000) will be
utilized to construct and install street improvements including
City Council Report
HCD Contract
I January 21, 1991
Page 2
sidewalks, curb and gutter, water mains and street lights in the
Orange Street (high school) area within the City's Target Area.
The City Attorney has reviewed the attached contracts and finds
them acceptable.
eth Schoemann
Associate Planner
BBS:CAS:kbc\contract.bbs
Christine A. Sigagleton
Director of Community Development
Attachments: Contract No. C40945
C40988
Community Development Department
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Contract No. C40988
COUNTY OF ORANGE
ENVIRONMENTAL MANAGEMENT AGENCY
HOUSING AND COMMUNITY DEVELOPMENT CONTRACT
TITLE OF PROJECT: City of Tustin - Rehabilitation of Private Properties (P15.10) Yr XVI
MEMORANDUM OF CONTRACT entered into this
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BY AND BETWEEN
AND
day of
CITY OF TUSTIN, a municipal corporation,
hereinafter referred to as CITY,
COUNTY OF ORANGE, a political subdivision of the
State of California and recognized Urban County
under the Federal Housing and Community
Development Act of 1974 (Public Law 93-383) , as
amended, hereinafter referred to as COUNTY.
WHEREAS, COUNTY and CITY previously entered into a Cooperation Agreement
dated September 5, 1990, in which both parties agreed to cooperate in the undertaking,
or assist in the undertaking, of community development and housing assistance
activities, and
WHEREAS, the CITY has submitted to the COUNTY an application for funding
of a project hereinafter described, and
WHEREAS, the COUNTY adopted the FINAL STATEMENT OF OBJECTIVES AND PROJECTED USE
OF FUNDS on May 16, 1990 (Resolution No. 90-679) which sets forth the project described
therein, and
WHEREAS, the U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT has accepted and
certified the aforementioned FINAL STATEMENT, and
WHEREAS, the COUNTY has entered into a separate agreement dated
August 71 1990 with the U.S. Department of Housing and Urban Development (hereinafter
referred to as HUD) to fund said project under the Housing and Community Development Act
l of 1974 (Public Law 93-383) , as amended, and
WHEREAS, the COUNTY has established a Home Improvement Program and has entered
into individual agreement to administer said program with HUD, California State
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Contract No. C40988
Department of Housing and Community Development and a local lending institution (s) , and
WHEREAS, the CITY has requested COUNTY to implement the CITY's Housing and
Community Development Project entitled Housing Rehabilitation and funded from Block
Grant funds (Yr. 16) for ($650,000).
NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the parties that the
following provisions listed as well as all applicable Federal, State and County laws and
regulations including the attached SPECIAL PROVISIONS, identified as Exhibit "A", and
Exhibits "B" and "C", are part of this Contract.
1. The COUNTY will administer CITY Community Development Block Grant
Rehabilitation funds to implement the Housing Rehabilitation Project described herein as
project, which will provide low-interest loans, deferred payment loans, grants or
rebates for home improvement of privately owned properties within the CITY's boundaries
(see attached map, Exhibit "B"), in accordance with the COUNTY's Home Improvement
Program (see Exhibit "C" of this Contract) as approved and amended periodically by the
Orange County Board of Supervisors. All rehabilitation of single family residential
units will benefit low- and moderate -income families and rehabilitation of multi -family
residential units will principally benefit (minimally 51%) low- and moderate -income
families as defined and revised periodically by HUD.
2. The total project funds available for loans, grants and rebates and
administrative costs hereinafter described will not exceed Sixty-five Thousand Dollars.
The CITY agrees to allow the use of 20% from total project funds for County Home
Improvement Program administrative charges. When the project is completed, any
remaining unexpended administrative funds from the total project funding amount will be
allocated to the Countywide Rehabilitation Administration account.
3. The CITY agrees to advertise the program and to provide outreach efforts to
prospective clients as County Home Improvement Program staff may periodically indicate
would be needed to promote loans, grants and rebates from available project funds. It
is agreed by all parties that the project shall be completed and all funds provided
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Contract No. C40988
1 through this Contract shall be expended on eligible project activities prior to
2 December 31, 1991. The date for project completion and expenditure of all funds may be
3 extended by the Director of the Orange County Environmental Management Agency or his
4 designee, on a year -by -year basis up to a maximum period of two (2) total years, through
5 written notification to the CITY. After Contract expiration, all unobligated funds for
6 loans, grants and rebates remaining through this Contract will be allocated to the
7 Countywide Home Improvement Program and such funds will be used on other eligible home
8 improvement projects administered through the Countywide Program, on a first-come,
9 f irst-served basis.
10 4. The CITY agrees to provide appropriate office space to the COUNTY, as needed
11 for the project, including use of a desk and a telephone.
12 5. Whenever available and feasible, Contract administrative funds may also be
used to administer the HUD 312 Program and Rental Rehabilitation Program funding in the
14 CITY. Other funding sources once approved by the Board of Supervisors for the Home
15 Improvement Program may be added to this agreement by mutual consent of the Director of
16 COUNTY's Environmental Management Agency and the CITY.
17 6. All program income pursuant to 24 CFR 570.506(c) which may be derived from
18 funding through this contract will be allocated to and will be used to further the
19 Countywide Home Improvement Program.
20 7. Neither COUNTY nor any officer nor employee thereof shall be responsible for
21 any damage or liability occurring by reason of any action or omission of CITY or its
22 agents, associates, contractors, subcontractors, materialmen, laborers, or any other
23 persons, firms, or corporations furnishing or supplying work service, materials, or
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24 supplies in connection with CITY's performance of this Contract and from any and all
25 claims and losses accruing or resulting to any persons, firm or corporation for personal
injuries or property damage resulting from or a s a consequence of, CITY' s performance
27 of this Contract under or in connection with any work, authority or jurisdiction
28 delegated to CITY under this Contract. It is also understood and agreed that, pursuant
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Contract No. C40988
to California Government Code Section 895.4, CITY shall fully indemnify, defend and hold
COUNTY harmless from any liability imposed for injury (as defined by California
Government Code section 810.) occurring by reason of any action or omission of CITY
under or in connection with any work, authority or jurisdiction delegated to CITY under
the Contract. CITY shall act in an independent capacity and not as officers, employees
or agents of COUNTY.
8. Neither CITY nor any officer nor employee thereof shall be responsible for
any damage or liability occurring by reason of any action or omission of COUNTY, its
agents, associates, contractors, subcontractors, materialmen, laborers, or any other
persons, firms, or corporations furnishing or supplying work service, materials, or
supplies in connection with COUNTY's performance of this Contract and from any and all
claims and losses accruing or resulting to any persons, firm or corporation for personal
injuries or property damage resulting f rom or as a consequence of , COUNTY' s performance
of this Contract under or in connection with any work, authority or jurisdiction
delegated to COUNTY under this Contract. It is also understood and agreed that,
pursuant to California Government Code Section 895.4, COUNTY shall fully indemnify,
defend and hold COUNTY harmless from any liability imposed for injury (as defined by
California Government Code Section 810.8) occurring by reason of any action or omission
of COUNTY under or in connection with any work, authority or jurisdiction delegated to
COUNTY under this Contract. COUNTY shall act in an independent capacity and not as
officers, employees or agents of CITY.
9. In the event of CITY's failure to comply with the provisions of this
Contract, COUNTY may withhold funds, and/or terminate this Contract, and allocate funds
previously assigned to this Contract to another eligible project(s) within the Urban
25 I County.
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Contract No. C409881
IN WITNESS WHEREOF, CITY has caused this Contract to be executed by its Mayor
and attested by its Clerk; COUNTY has caused this Contract to be executed by the
Director of EMA/Housing and Redevelopment, all having been duly authorized by the City
Council of CITY and the Orange County Board of Supervisors.
Dated:
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ATTEST:
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Dated:
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City Clerk
CITY OF TUSTIN
By
Mayor
COUNTY OF ORANGE, a political subdivision of
the State of California
By
Director, EMA-Housing and Redevelopment
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APPROVED AS TO FORM:
ADRIAN RUYPER, COUNTY COUNSEL
ORANGE COUNTY, CALIFORNIA
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APPROVED AS TO FINANCIAL PROVISIONS:
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APPROVED AS TO ACCOUNTING PROVISIONS: Env. DM
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RNID: bjgAWP24-2 (C40988)
11/28/90
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Contract No. C40945
COUNTY OF ORANGE
ENVIRONMENTAL MANAGEMENT AGENCY
HOUSING AND COMMUNITY DEVELOPMENT CONTRACT
TITLE OF PROJECT: City of Tustin: Public Facilities and Improvements (P15.40) Year XVI
MEMORANDUM OF CONTRACT entered into this day of ,
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BY AND BETWEEN
and
CITY OF TUSTIN, a municipal corporation,
hereinafter referred to as CITY,
COUNTY OF ORANGE, a political subdivision of the
State of California and recognized Urban County
under the Federal Housing and Community
Development Act of 1974 (Public Law 93-383), as
amended, hereinafter referred to as COUNTY.
WHEREAS, COUNTY and CITY previously entered into a Cooperation Agreement
dated September 5, 1990, in which both parties agreed to cooperate in the undertaking,
or assist in the undertaking, of community development and housing assistance
activities, and
WHEREAS, the CITY has submitted to the COUNTY an application for funding
of a project hereinafter described, and
WHEREAS, the COUNTY adopted the FINAL STATEMENT OF OBJECTIVES AND PROJECTED USE
OF FUNDS on May 16, 1990 (Resolution No. 90-679) which sets forth the project described
herein, and
WHEREAS, the U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT has accepted and
certified the aforementioned FINAL STATEMENT, and
WHEREAS, the COUNTY has entered into a separate agreement dated
August 7, 1990 with the U.S. Department of Housing and Urban Development (hereinafter
referred to as HUD) to fund said project under the Housing and Community Development Act
of 1974 (Public Law 93-383), as amended.
NOW, THEREFORE, IT IS AGREED by and between the parties that the following
provisions as well as all applicable Federal, State and County laws and regulations
including the attached SPECIAL PROVISIONS, identified as EXHIBIT "A", are part of this
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Contract.
1. For the PURPOSES OF THIS CONTRACT the following definitions shall apply:
a. Project Manager: The party responsible for, but whose responsibility is
not limited to the following: Contracting, monitoring and implementing the project
through completion.
b. Director: The Director of the Orange County Environmental Management
Agency (hereinafter referred to as EMA) or his designee.
c. Reimbursable Basis: The CITY will provide the funds for the project and
submit proof of payment to the COUNTY, whereby upon approval, the COUNTY will forward
Community Development Block Grant (hereinafter referred to as CDBG) funds to repay the
CITY .
d. Construction Bid Package: A package of bidding documents which includes
proposal, bidding instructions, contract documents, detailed estimated costs and plans
and specifications for a construction project, all prepared in accordance with
applicable Federal regulations.
2. It is understood that the CITY will act as PROJECT MANAGER for the project
described as: City of Tustin: Public Facilities and Improvements (P15.40) Year XVI.
The City of Tustin will utilize CDBG funds to construct/install street and drainage
Iimprovements, curbs, gutters, sidewalks, street lights, street paving, water mains and
storm drain in the Orange Street (high school) target area. Project will benefit low -
and moderate -income residents within the target area (see attached map, EXHIBIT "B",
i which is part of this Contract) .
3. It is agreed by all parties that the project shall be completed and all
funds provided through this Contract shall be expended on eligible project activities
prior to December 31, 1991. Invoices for all approved project costs funded by the Block
Grant under this Contract shall be submitted within 180 days after the above date. The
date for project completion and expenditure of all funds may be extended at the
discretion of the DIRECTOR, on a year -by -year basis up to a maximum period of five (5)
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Contract No. C40945
total years, through written notification to the CITY. In the event of such an
- extension, the deadline for submittal of invoices shall be 180 days after the new
completion date. After Contract expiration, all unexpended funds remaining from
2 this Contract may be allocated by the COUNTY to another eligible project(s) within the
3 Urban County CDBG Program.
4 4. CITY agrees:
5 a. Any proposed amendment to this Contract shall be submitted to and
6 approved by the COUNTY, prior to commencement by CITY of any activity covered by said
7 amendment.
8 b. To submit any and all third-party contracts proposed for funding through
9 this Contract to DIRECTOR for review and approval prior to award of such contracts by
10 CITY.
11 c. To comply with CDBG Program Regulations, as may be periodically revised
12 by HUD, Office of Management and Budget, or other Federal agencies, and including laws
4-0 and policies applicable to the CDBG Program.
14 d. That the project shall be implemented and appropriately maintained for
15 Community Development purposes as defined by applicable HUD provisions to ensure maximum
16 feasible benefit and utilization of the project by low- and moderate-income persons.
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17 e. To maintain accounting records, official files, and other evidence i
18pert g ainin to costs incurred as required by all applicable HUD regulations, and all of
19 these shall be accessible for the purposes of monitoring, audit, reporting or review by
20 duly authorized representatives of COUNTY or HUD. These records shall be kept available;
21 at CITY's office during the project's contract period and thereafter for three (3) years;,
22 from the date of final CITY receipt of HUD CDBG funds through this Contract.
23 f. That DIRECTOR shall periodically evaluate the CITY's progress in
24 complying with the terms of this Contract. CITY shall cooperate fully during such
25 monitoring. DIRECTOR shall report the findings of each monitoring to the CITY and
Orange County Board of Supervisors. if it is determined by the Board of Supervisors
27 that CITY performance or progress on performance is unsatisfactory, the Board of
28 Supervisors may withhold further funding on the project pending resolution of the
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Contract No. C40945
1 unsatisfactory condition (s) , or may terminate this Contract. In addition, the Board of
2 Supervisors may require the CITY to reimburse COUNTY any funds that it determines to be
3 improperly expended or not expended on the project in a timely manner based on
4 applicable CDBG Program Regulations.
5 g. That if it is determined by HUD that funds were not expended in
6 compliance with the applicable Federal laws and regulations, CITY will refund to COUNTY
7 within ninety 90 days thereafter such sums as were determined by HUD to have been
8 improperly expended.
9 h. When the project is completed, all unexpended funds remaining will be
10 returned to the COUNTY as soon as practicable, but in any event, within 180 days
11 thereafter. DIRECTOR may then reallocate returned funds to another Urban County
12 project (s) previously approved by the Board of Supervisors. Returned funds as such, may
be allocated by the DIRECTOR up to the lesser amount of ten percent (10%) of total
14 Contract funds provided herein Section 5.a. or Ten Thousand Dollars ($10,000.00) .
15 i. Should the COUNTY receive returned funds from other Urban County
16 projects, funding for this Contract, upon proof of anticipated cost overruns, may be
17 increased at the discretion and upon written authorization of the DIRECTOR up to the
18 lesser amount of ten percent (10%) of total Contract funds provided herein Section 5.a.
19 or Ten Thousand Dollars ($10,000.00).
20 j. To assume responsibility for compliance with the California
21 Environmental Quality Act (CEQA) and to provide COUNTY with necessary information to
22 comply with the National Environmental Policy Act (NEPA) prior to commencing project
23 implementation. This may include, when applicable, CITY preparation of NEPA
24 documentation in coordination with EMA staff.
25 k. To be responsible for design and inspection, including funding the costs j
related to those activities, unless funding for design and inspection activities is
27 provided for in Section 5.a. of this Contract.
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review prior to advertising for bids on the construction contract or prior to award of
Isuch a contract if an alternative method of award is used. CITY shall not advertise for
bids until DIRECTOR has approved Construction Bid Package, CITY shall construct project
in accordance with the Construction Bid Package which DIRECTOR approved unless prior
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written approval is received from DIRECTOR for modification therefrom.
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5. Project Funding:
a. Project will be financed under this Contract as follows:
Total CDBG Funds
$40,000.00 (Forty Thousand Dollars and
b. COUNTY shall not be responsible for any costs which exceed the approved
CDBG funding amount as referenced in Section 5.a. unless otherwise provided in advance
as referenced in Section 4.i.
c. Payment by the COUNTY to the CITY shall be on a reimbursable basis
unless CITY has been authorized and issued cash advances at the discretion of the
DIRECTOR under this Contract.
d. Cash advances requested by the CITY under this Contract may be made by
the DIRECTOR to the CITY if the following conditions are met:
(1) The CITY has demonstrated to DIRECTOR through certification in a
form prescribed by DIRECTOR and subsequently through performance, its willingness and
capacity to establish CITY financial procedures that will minimize the time elapsing
between the receipt of funds and proper disbursement of such funds.
(2) The CITY certifies to DIRECTOR, that the CITY's financial
management system meets the standards for fund control and accountability prescribed in
Office of Management and Budget Circular No. A-102, as periodically amended.
(3) The CITY complies with the cash advance procedures required by
financial procedures of EMA. These procedures require that upon written receipt of
f unds f rom the COUNTY , the CITY shall disburse payment (s) to vendor (s) within f ive ( 5)
working days and submit evidence of such disbursement (s) (i.e. , warrant copies, etc.) to
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the DIRECTOR.
If the CITY is subsequently found, by DIRECTOR, to be in noncompliance
with Section 5.d . (1) through Section 5.d.(3), CITY shall be paid on a
reimbursable basis.
e. Reimbursable basis payments, as referred to in Section 5.c. and/or cash
advances described in Section 5.d. shall be made in accordance with EMA financial
procedures. In the event of conflict between EMA financial procedures and any
applicable statutes, rules or regulations of HUD, including Office of Management and
Budget Circular No. A-102, the latter shall prevail.
6. CITY must inform the DIRECTOR (through periodic reports requested by EMA
staff) of any income generated by the expenditure of CDBG funds received by the CITY;
and that per applicable Federal requirements, certain program income must be paid to the
COUNTY (e.g., interest earned on CDBG cash advances); and/or, the CITY may retain such
program income only if that program income is used exclusively for eligible activities,
at the discretion of the DIRECTOR, and in accordance with all CDBG requirements as may
then apply.
a. CITY shall keep and maintain appropriate records on the use of any such
program income as may be required by EMA staff since the COUNTY has the responsibility
of monitoring and reporting program income to HUD.
b. In the event of CITY close-out or change in status of the participating
CITY in the Urban County CDBG Program, any program income at that time or received
subsequent to the close-out or change in status shall be paid by CITY to the COUNTY
within 90 days thereafter.
7. Any proposed modification or change in use of real property acquired or
improved in whole or in part by CDBG funds from that planned at the time of the
acquisition or improvement, including disposition, must be reported by CITY to the
COUNTY and receive COUNTY concurrence thereto in advance of implementing the
modification or change in use.
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a. Should the disposition, sale or transfer of such real property acquired
or improved in whole or in part using CDBG funds result in a use which does not qualify
under CDBG Regulations, the COUNTY shall be reimbursed by CITY in an amount equal to the
current fair market value (less any portion thereof attributable to expenditures of non-
CDBG funds) .
b. Any program income generated from the disposition, transfer or sale of
such property prior to or subsequent to the CITY close-out or change in status of the
CITY in the Urban County CDBG Program may be either used by CITY for other specific
eligible activities in the CITY or paid to the COUNTY for other eligible Urban County
activities, as determined in advance of the expenditure at the discretion of the COUNTY.
8. CITY shall obtain an annual audit performed in accordance with OMB Circular
A128 and forward a copy to DIRECTOR. DIRECTOR shall have the right to ensure that
necessary corrective actions are made by the CITY for any audit findings pertinent to
CITY handling of funding attributable to the CDBG Program per Federal requirements.
9. Neither COUNTY nor any officer nor employee thereof shall be responsible for
any damage or liability occurring by reason of any action or omission of CITY or its
agents, associates, contractors, subcontractors, materialmen, laborers, or any other i
persons, firms, or corporations furnishing or supplying work service, materials, or
supplies in connection with CITY's performance of this Contract and from any and all
claims and losses accruing or resulting to any persons, firm or corporation for personal j
injuries or property damage resulting from or as a consequence of, CITY's performance of
this Contract under or in connection with any work, authority or jurisdiction delegated
to CITY under this Contract. It is also understood and agreed that, pursuant to j
California Government Code Section 895.4, CITY shall fully indemnify, defend and hold
COUNTY harmless from any liability imposed for injury (as defined by California
Government Code Section 810.8) occurring by reason of any action or omission of CITY
under or in connection with any work, authority or jurisdiction delegated to CITY under
this Contract. CITY shall act in an independent capacity and not as officers, employees
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or agents of COUNTY.
10. Neither CITY nor any officer nor employee thereof shall be responsible for
any damage or liability occurring by reason of any action or omission of COUNTY, its
agents, associates, contractors, subcontractors, materialmen, laborers, or any other
persons, firms, or corporations furnishing or supplying work, service, materials, or
supplies in connection with COUNTY's performance of this Contract and from any and all
claims and losses accruing or resulting to any persons, firm or corporation for personal
injuries or property damage resulting from or as a consequence of COUNTY's performance
of this Contract under or in connection with any work, authority or jurisdiction
delegated to COUNTY under this Contract. It is also understood and agreed that,
pursuant to California Government Code Section 895.41 COUNTY shall fully indemnify,
defend and hold CITY harmless from any liability imposed for injury (as defined by
California Government Code Section 810.8) occurring by reason of any action or omission
of COUNTY under or in connection with any work, authority or jurisdiction delegated to
COUNTY under this Contract. COUNTY shall act in an independent capacity and not as
officers, employees or agents of CITY.
11. Where contract funds are withheld, and at the request and expense of CITY,
COUNTY will accept securities equivalent to the amount withheld. Such substituted
security, meeting the requirements of Government Code Section 4590, shall be deposited
with COUNTY, or with a State or Federally chartered bank as escrow agent. If security
is deposited with an escrow agent, it shall be covered by an escrow agreement.
12. In the event of CITY's failure to comply with the provisions of this
Contract, COUNTY may withhold or require CITY reimbursement of funds, and/or terminate
this Contract, and/or allocate funds previously assigned to this Contract to another
eligible project(s) within the Urban County.
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Contract No. C409451
IN WITNESS WHEREOF, CITY has caused this Contract to be executed by its Mayor
and attested by its Clerk; COUNTY has caused this Contract to be executed by the
Director of EMA/Housing and Redevelopment, all having been duly authorized by the City
Council of CITY and the Orange County Board of Supervisors.
Dated:
ATTEST:
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City Clerk
CITY OF TUSTIN
By
Mayor
COUNTY OF ORANGE, a political subdivision of
the State of California
By -
Director, EMA-Housing and Redevelopment
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APPROVED AS TO FORM:
ADRIAN KUYPER, COUNTY COUNSEL
ORANGE COUNTY, CALIFORNIA
By
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APPROVED )kS TO FINANCIAL PROVISIONS: H/CD
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APPROVED AS TO ACCOUNTING PROVISIONS: Env. LI -1"
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RMD: bjgAWP25-2 (C40945)
11/28/90