Loading...
HomeMy WebLinkAboutCC 4 C.D. CONTRACTS 01-03-84DATE: TO: FROH: S UBJ ECT: 12/22/83 CONSENT CALENDAR NO. 4 1-3-84 Inter-Corn WILLIAM HUSTON, CITY MANAGER JAMES G. ROURKE, CITY ATTORNEY HOUSING & COMMUNITY DEVELOPMENT CONTRACTS WITH THE CO{3N~Y OF (YlEANOE On December 19th the Council approved and authorized the execu- tion of two contracts with the County of Orange, one for public facilities improvements, housing and community development act of 1974 (HCD)(South "B" Street/Mitchell area)(Consent Calendar #6) and one for public facilities improvements, special jobs bill funding (South "B" Street/Mitchell area)(Consent Calendar ~7). The County has now requested that these contracts have several very minor changes made in each of them, as shown on the attached sheets. These changes do not affect the substance of the agree- ments in any way. The revised contracts, containing the changes set forth<in red)on the attached two sheets, are enclosed and it is requested and recommended that the City Council approve the contracts and authorize and direct the Mayor and City Clerk to execute and deliver them. JGR:se:D:12/21/83(94) Enclosures 5 6 8 10 11 14 16 17 18 19 2O 21 22 Coat;act, No. C25375 h. '~ha.~ DIRECTOR, eh~Lt periodically evaluate ~ ~t ~er~o~ce or progress on pe~form~ce is ~aaCisiac~, ~e B~gd et Su~vi~gs My wit~o~d ~u~e~ ~u~i~ on ~e p~o~eot peking ~e~lu~on o~ ap~o~rly e~e~ or ~ e~ended on ~e proj~t in a timely 1. ~t Ii it la $~uently ~terml~d by ~ o~ ~u~s we~o ~t Ox~ed in c~liance wi~ ~e applic~le ~ede~al diac~e~t~ sE ~e B~rd pg Su~rvl~rs. and p~/lO0). and no/lOO), land /~xlui~.ition Design and lnap,mctl~ / Contract No. C26940 of Su~rv~sors ~y ;equ~re reL~u;se~n~ o~ ~go~gly e~ended og ~t expended ~ 1. T~t ~f ~t Is s~seq~ntly de~r~d funds were ~ ex~ed in c~pltance v~ ~ho appll~le ~ederal lsws and regulative, CITY w~ll ~efund ~ ~U~Y $~h ~ as ~te ~pro~fly e~ded. J. ~n ~e proj~t W~ll ~ ~etutned ~ the ~. C~ U~ ~nty ~t~vities at ~ d~s~e~im of ~e B~d o~ Supe~v~o~s. k. ~ asa~ tes~ib~l~ty ~ ~pllance ~d ~ ~ovAde ~ w~th o Project Fund ~ng; s. The est~ted ps=~aet ee, t~) covered ~ ~8 a~ree~t tss ; -0- : ;;s,ooo.oo . c, COOHTY shaLL not be responsible for any cones which exceed the -4- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Contract No. C25375 COUNTY OF ORANGE ENVIRONMENTAL MANAGEMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT CONTI~ACT TITLE OF PROJECT: Public Facilities and Improvements (JB15.1) MEMORANDUM OF CONTRACT entered into this day of , 19 BY AND BETWEEN CITY OF TUSTIN, a municipal corporation, hereinafter referred to as CITY, and 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 November 24, 1981 in which both parties agreed to cooperate in the undertaking, or assist in the undertaking, of co,unity development and housing assistance activities, and WHEREAS, the CITY has submitted to the COUNTY an application for funding of a project hereinafter described, and W~EREAS, the COUNTY has entered into a separate agreement dated September 13, 1983 with the U. S. Department of Housing and Urban Development (hereinafter designated as HUD) to fund said project under the Housing and Community Development Act of 1974 (Public Law 93-383), as amended (hereinafter referred to as ACT) and the Emergency Jobs Bill of 1983 (Public Law 98-8, hereinafter referred to as JOBS BILL). NOW, THEREFORE, IT IS AGB~R.D 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", and all other attached Exhibits, are part of this Contract. 1. For the PURPOSES OF THIS CONTRACT the following definitions shall apply: Contract No. C25375 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 a. Project Manager: The party responsible for, but whose responsibility is not limited to the following: Contracting, monitoring and implementing the project. b. Construction Bid Packages A package of bidding documents which includes proposal, bidding instruction, contract documents, detailed estimated costs and plans and specifications for a construction project all prepared in accordance with applicable federal regulations. Director: The Director of the Orange County Environmental Management Agency. d. 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 JOBS BILL Community Development Block Grant funds to repay the CITY. 2. It is understood that the CITY is solely responsible for implementation of the project, described as: Public Facilities and Improvements (JB15.1). Project funds are for the continuation of the storm drain and street reconstruction project in the #B#/Mitchell Street portion of the CITY's target area (see Map EXHIBIT #B#). Project may also include sidewalks, curbs and gutters and street lights. It is agreed by all parties that the project shall be completed and JOBS BILL Block Grant funds provided through this Contract shall be expended on eligible project activities prior to December 31, 1984. In the event that the CITY has not completed the project and submitted appropriate invoices for all approved project costs funded by the JOBS BILL Block Grant prior to December 31, 1984, this Contract shall be subject to termination at the discretion of the COUNTY. CITY may, prior to the Contract termination date, make written request to DIRECTOR for extension thereof. Such request may be granted by DIRECTOR based upon his written concurrence of good cause and if permissible by JOBS BILL and HUD regulations. 3. CITY agrees: --2-- Contract No. C25375 1 a. Any amendment(s) to this Contract shall be submitted to and 2 approved by the .COUNTY, prior to commencement by CITY of such project. 3 b. To be Project Manager for said project and to submit any and all 4 third-party contracts funded through this Contract to DIRECTOR for review prior to 5 award of such contracts by CITY. 6 c. To be responsible for design and inspection, including funding 7 the costs related to those activities, unless funding for design and inspection 8 activities is provided for in Section 4.a. of this Contract. 9 d. To submit the Construction Bid Package for this project to 10 DIRECTOR for review prior to advertising for bids on the construction contract or 11 prior to award of such a Contract if sole source procurement is used. CITY shall 12 not advertise for bids until DIRECTOR has approved Construction Bid Package. CITY 13 shall construct project in accordance with the ~onstruction Bid Package which 14 DIRECTOR approved unless prior written approval is received from DIRECTOR for 1§ deviation therefrom. 16 e. That all work shall be in accordance with CITY's governing 17 building and safety codes. 18 f. To complete and maintain separate accounting records for the 19 project, reports, official files, and other documentation pertaining to the project 20 and costs incurred as required by all applicable JOBS BILL and HUD regulations. All 21 of these shall be accessible for the purposes of monitoring, surveys, audits and 22 examinations by duly authorized representatives of COUN"fY or HUD. These records, 23 reports and files shall be kept available at CITY'S office during the project's 24 contract period and thereafter for three (3) years from the date of final payment of 25 HUD JOBS BILL Community Development Block Grant funds. 26 g. That the project shall be constructed for Community Development 27 purposes as defined by applicable HUD provisions to ensure maximum feasible benefit 28 and utilization of the project by iow- and moderate-income persons. --3-- Contract No. C25375 1 h. That DIRECTOR, shall periodically evaluate the CITY's progress 2 in complying with the terms of this Contract. CITY shall cooperate fully in such 3 evaluation. DIRECTOR shall report the findings of each evaluation to the CITY and 4 Orange County Board of Supervisors. If it is determined by the Board of Supervisors 5 that performance or progress on performance is unsatisfactory, the Board of 6 Supervisors may withhold further funding on the project pending resolution of the 7 unsatisfactory condition(s) or may terminate this Contract. In addition, the Board 8 of Supervisors may require reimbursement of any funds that it determines to be 9 improperly expended or not expended on the project in a timely manner. 10 i. That if it is subsequently determined by COUl~fY or HUD that 11 funds were not expended in compliance with the applicable federal laws and 12 regulations, CITY will refund to COUNTY such sums as were improperly expended. 13 j. When the project is completed all unexpended funds remaining 14 will be returned to the COUNTY. COUNTY may then reallocate returned funds to other 15 Urban County activities as permissible by JOBS BILL and HUDregulations and at the 16 discretion of the Board of Supervisors. 17 k. To assume responsibility for California Environmental Quality 18 Act compliance and to provide COUNTY with necessary information to comply with the 19 National Environmental Policy Act. 20 4. Project Funding~ 21 a. The estimated cost of the portion of project covered by this agreement is: and no/100). and no/100). 22 23 24 25 26 27 TOTAL 28 Land Acquisition Design and Inspection Construction Contract $ -0- $65,000.00 (Sixty-Five Thousand Dollars $65,000.00 (Sixty-Five Thousand Dollars -4- Contract No. C25375 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 b. The total project will be financed as follows: JC~S BILL Block Grant Funds $ 65,000.00 (Sixty-Five Thousand Dollars and no/100 under this agreement, Contract No. C25375). Entitlement Block Grant Funds $125,000.00 (One Hundred Twenty-Five Thousand Dollars and no/100 under Contract No. C26810 and Contract No. C26940). TOTAL $190,000.00 (One Hundred Ninety Thousand Dollars and no/100). c. COUNTY shall not be responsible for any costs which exceed the approved JOBS BILL Block Grant amount. d. Payment by the COUNTY to the CITY shall be on a reimbursable basis unless CITY has been authorized and issued cash advances by COUNTY under this Contract. e. .Cash advances requested by the CITY under this Contract shall be made by the COUNTY 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 ability to establish procedures that will minimize the time elapsing between the receipt of funds and 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 amended from time to time. (3) The CITY complies with the cash advance procedures as shall be required by the Financial Procedures of the Housing and Con~nunity Development Program Office of County's Environmental Management Agency (hereinafter EMA). These procedures require that upon written receipt of funds from the COUNTY, the CITY shall disburse payment to vendor within five (5) working days and submit such evidence (i.e., warrant copies, etc.) to the COUNTY. --5-- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 21 22 23 26 27 If the CITY is subsequently found, by DIRECTOR, tO be noncompliance with 4.e.(1) through 4.e.(3) CITY shall be paid pursuant to 4.d. f. Reimbursable basis payments, as referred to in section 4.d. above, and/or cash advances described in 4.e. above, shall be made in accordance with the financial procedures of EMA. In the event of conflict between such 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. 5. Neither COUNTY nor any officer nor employee thereof shall be respon- sible 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 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 injuries or property damage resulting from or as a consequence of, CITY's performance of this Contract under or in connection with an5 work, authority or jurisdiction delegated to CITY under this Contract. It is also understood and agreed that, pursuant 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 810.8) 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 or agents of COUNTY. 6. 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 --6-- Contract No. C25375 1 supplying work, service, materials, or supplies in connection with COUNTY's 2 performance of this Contract and from any and all claims and losses accruing or 3 resulting to any persons, firm or corporation for personal injuries or property 4 damage resulting from or as a consequence of COUNTY's performance of this Contract 5 under or in connection with any work, authority or jurisdiction delegated to COUNTY 6 under this Contract. It is also understood and agreed that, pursuant to California 7 Government Code Section 895.4, COUNTY shall fully indemnify, defend and hold CITY 8 harmless from any liability imposed for injury (as defined by California Government 9 Code Section 810.8), occurring by reason of any action or omission of COUNTY under 10 or in connection with any work, authority or jurisdiction delegated to COUNTY under 11 this Contract. COUNTY shall act in an independent capacity and not as officers, 12 employees or agents of CITY. 18 7. Where contract funds are withheld, and at the request and expense of 14 CITY, COUNTY will accept securities equivalent to the amount withheld pursuant to 15 Section 9-3.2. Such substituted security, meeting the requirments of Government 16 Code Section 4590, shall be deposited with COUNTY, or with a State or federally 17 chartered bank as escrow agent. If security is deposited with ~n escrow agent, it 18 shall be covered by an escrow agreement. 19 8. In the event of CITY's failure to comply with the provisions of this 20 Contract, COUNTY may at its discretion withhold funds and/or reallocate funds to 21 another activity considered by the COUNTY to be in compliance with the ACT or JOBS III III III III III III -7- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 Contract No. C26940 COUNTY OF ORANGE ENVIRONMENTAL MANAGEMENT AGENCY HOUSING AND COMMUNITY DEVELOPMENT CONTRACT TITLE OF PROJECT: Public Facilities and Improvements (I15.2) MEMORANDUM OF CONTRACT entered into this day of 19 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 November 24, 1981 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 has entered into a separate agreement dated August 2, 1983 with the U. S. Department of Housing and Urban Development (hereinafter designated as HUD) to fund said project under the Housing and Community Development Act of 1974 (Public Law 93-383), as amended (hereinafter referred to as ACT). NOW, THE~FORE, 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"', and all other attached Exhibits, are part of this Contract. 1. For the PURPOSES OF THIS CONTRACT the following definitions shall apply: responsibility is not limited to the following: a. Project Manager: The party responsible for, but whose Contracting, ~onitoring and Contract No. C26940 implementing the project. b. Construction Bid Package: A package of bidding documents which includes proposal, bidding instruction, contract documents, detailed estimated costs and plans and specifications for a construction project all prepared in accordance with applicable federal regulations. Director: The Director of the Orange County Environmental Ce Management Agency. d. 1 2 3 4 5 6 7 8 Reimbursable Basis: The CITY will provide the funds for the 9 project and submit proof of payment to the COUNTY, whereby upon approval the COUNTY 10 will forward Community Development Block Grant funds to repay the CITY. 11 2. It is understood that the CITY is solely responsible for 12 implementation of the project, described as: Public Facilities and In~rovements 13 (I15.2). The CITY will utilize CDBG funds for the construction and installation of 14 1,285 linear feet of storm drain. The storm drain is to be located on"B" Street 15 northerly of Mitchell Avenue and on Nisson Road from "B" Street to 800' west on 18 Nisson Road (see Map EXHIBIT "B"). 17 It is agreed by all parties that funds provided through this Contract 18 shall be expended on eligible project activities prior to December 31, 1984. In the ]9 event that the CITY has not submitted appropriate invoices for all approved project 20 costs funded by the Block Grant prior to December 31, 1984, this Contract shall be 21 subject to termination at the discretion of the COUNTY. CITY may, prior to the 22 Contract termination date, make written request to DIRECTOR for extension thereof. 23 Such request may be granted by DIRECTOR upon his written concurrence of good cause. 24 3. CITY agrees: 25 a. Any amendment(s) to this Contract shall be submitted to and 26 approved by the COUNTY, prior to commencement by CITY of such project. 27 b. TO be Project Manager for said project and to submit any and ~8 all third-party contracts funded through this Contract to DIRECTOR for review prior --2-- Contract No. C26940 I to award of such contracts by CITY. 2 c. To be responsible for design and inspection, including funding 3 the costs related to those activities, unless funding for design and inspection 4 activities is provided for in Section 4.a. of this Contract. 5 d. To submit the Construction Bid Package for this project to 6 DIRECTOR for review prior to advertising for bids on the construction contract or 7 prior to award of such a Contract if sole source procurement is used. CITY shall 8 not advertise for bids until DIRECTOR has approved Construction Bid Package. CITY 9 shall construct project in accordance with the Construction Bid Package which 10 DIRECTOR approved unless prior written approval is received from DIRECTOR for 11 deviation therefrom. 12 e. That all work shall be in accordance with CITY's governing 13 building and safety co~es.. 14 f. T,o maintain accounting records, official files, and other 15 evidence pertaining to costs incurred as required by all applicable HUD regulations, 16 and all of these shall be accessible for the purposes of monitoring, surveys, audits 17 and examinations by duly authorized representatives of COUNTY or HUD. These records 18 shall be kept available at CITY'S office during the project's contract period and 19 thereafter for three (3) years from the date of final payment of HUD Con, unity 20 Development Block Grant funds. 21 g. That the project shall be constructed for Community Development 22 purposes as defined by applicable HUD provisions to ensure maximum feasible benefit 23 and utilization of the project by iow- and moderate-income persons. 24 h. That DIRECTOR, shall periodically evaluate the CITY's progress 25 in complying with the terms of this Contract. CITY shall cooperate fully in such 26 evaluation. DIRECTOR shall report the findings of each evaluation to the CITY and 27 Orange County Board of Supervisors. If it is determined by the Board of Supervisors 26 that performance or progress on performance is unsatisfactory, the Board of --3-- Contract No. C26940 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 Supervisors may withhold further funding on the project pending resolution of the unsatisfactory condition(s) or may terminate this Contract. In addition, the Board of Supervisors may require reimbursement of any funds that it determines to be improperly expended or not expended on the project in a timely manner. i. That if it is subsequently determined by COUNTY Or HUD that funds were not expended in compliance with the applicable federal laws and regulations, CITY will refund to COUNTY such sums as were improperly expended. j. When the project is completed all unexpended funds remaining will be returned to the COUNTY. COUNTY may then reallocate returned funds to other Urban County activities at the discretion of the Board of Supervisors. k. To assume responsibility for California Environmental Quality Act compliance and to provide COUNTY with necessary information to comply with the National Environmental Policy Act. 4. Project Funding: a. The estimated cost of the portion of project covered by this agreement is: Dollars and no/100). Land Acquisition Design and Inspection Construction Contract $ -0- $ 75,000.00 (Seventy-Five Thousand TOTAL $75,000.00 (Seventy-Five Thousand Dollars and no/100). b. The total project will be financed as follcws~ Entitlement Block Grant Funds $125,000.00 (One Hundred Twenty-Five Thousand Dollars and no/100 under this agreement Contract No. C26940; and Contract No. C26810). JOBS BILL Block Grant Funds $ 65,000.00 (Sixty-Five Thousand Dollars and no/100 under Contract No. C25375). --4-- Contract No. C26940 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 TOTAL $190,000.00 (One ~undred Ninety Thousand Dollars and no/100). c. COUNTY shall not be responsible for any costs which exceed the approved Block Grant amount. d. Payment by the COUNTY to the CITY shall be on a reimbursable basis unless CITY has been authorized and issued cash advances by COUNTY under Contract. e. Cash advances requested by the CITY under this Contract shall made by the COUNTY to the CITY if the following conditions are met= (1) The CITY has demonstrated to DIRECTOR through certificati in a form prescribed by DIRECTOR and subsequently through performance, its willingness and ability to establish procedures that will minimize the time elapsi between the receipt of funds and disbursement of such funds. (2) The CITY certifies to DIRECTOR, t. hat the CITY's financial management system meets the standards for fund control and accountability prescri~ in Office of Management and Budget Circular No. A-102 as amended from time to time (3) The CITY complies with the cash advance procedures as sh~ be required by the Financial Procedures of the Housing and Con, unity Development Program Office of County's Environmental Management Agency (hereinafter EMA). ThE procedures require that upon written receipt of funds from the COUNTY, the CITY shall disburse payment to vendor within five (5) working days and submit such evidence (i.e., warrants, etc.) to the COUNTY. If the CITY is subsequently found, by DIRECTOR, to be in noncompliance with 4.e.(1} through 4.e.(3) CITY shall be paid pursuant to 4.d. f. Reimbursable basis payments, as referred to in section 4.d. above, and/or cash advances described in 4.e. above, shall be made in accordance with the financial procedures of EMA. In the event of conflict between such Contract No. C26940 1 including Office of Management and Budget Circular No. A-102, the latter shall 2 prevail. 3 5. Neither COUNTY nor any officer nor employee thereof shall be respon- 4 sible for any damage or liability occurring by reason of any action or omission of 5 CITY or its agents, associates, contractors, subcontractors, materialmen, laborers, or any other persons, firms, or corporations furnishing or supplying work service, 7 materials, or supplies in connection with CITY's performance of this Contract and 8 from any and all claims and losses accruing or resulting to any persons, firm or 9 corporation for personal injuries or property damage resulting from or as a 10 consequence of, CITY's performance of this Contract under or in connection with any 11 work, authority or jurisdiction delegated to CITY under this Contract. It is also understood and agreed that, pursuant to California Government Code Section 895.4, CITY shall fully indemnify, defend and hol~ COUNTY harmless 'from any liability 14 imposed for injury (as defined by California Government Code Section 810.8) 15 occurring by reason of any action or Omission of CITY under or in connection with 16 any work, authority or jurisdiction delegated to CITY under this Contract. CITY 17 shall act in an independent capacity and not as officers, employees or agents of 18 COUNTY. 19 6. 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 26 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 --6-- Contract No. C26940 1 Government Code Section 895.4, COUNTY shall fully indemnify, defend and hold CITY harmless from any liability imposed for injury (as defined by California Government 3 Code Section 810.8) occurring by reason of any action or omission of COUNTY under or 4 in connection with any work, authority or jurisdiction delegated to COUNTY under 5 this Contract. COUNTY shall act in an independent capacity and not as officers, 6 employees or agents of CITY. 7 7. Where contract funds are withheld, and at the request and expense of CITY, COUNTY will accept securities equivalent to the amount withheld pursuant to Section 9-3.2. Such substituted security, meeting the requirments of Government 10 Code Section 4590, shall be deposited with COUNTY, or with a State Or federally 11 chartered bank as escrow agent. If security is deposited with an escrow agent, it 12 shall be covered by an escrow agreement. 13 8. In the event of CITY's failure to comply with the provisions of this 14 Contract, COUNTY may at its discretion withhold funds and/or reallocate funds to 15 another activity considered by the COUNTY tO be in compliance with the ACT. III 17 //I 18 III 19 /// 90 III 21 //I III III III 25 /// 26 /// 27 /// 28 /// -7-