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HomeMy WebLinkAbout06 THIRD AMENDMENT TO CONTRACTOR SERVICES AGREEMENT TEMPORARY SHELTER, INC DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 Agenda Item 6 D J� Reviewed: ?yl5W AGENDA REPORT City Manager Finance Director MEETING DATE: JUNE 1 , 2021 TO: MATTHEW S. WEST, CITY MANAGER & HOUSING AUTHORITY EXECUTIVE DIRECTOR FROM: TUSTIN HOUSING AUTHORITY SUBJECT: THIRD AMENDMENT TO CONTRACTOR SERVICES AGREEMENT — TEMPORARY SHELTER, INC SUMMARY The Tustin Housing Authority ("Authority") is seeking authorization to enter into a Third Amendment to the Contractor Services Agreement ("CSA") with Temporary Shelter, Inc., to operate the Tustin Temporary Emergency Shelter through June 30, 2022. RECOMMENDATIONS TO THE CITY COUNCIL AND HOUSING AUTHORITY COMMISSIONERS: It is recommended that the City Council, as the governing body of the City of Tustin, take the following actions: 1) Authorize the City Manager to execute on behalf of the City the Third Amendment to the Contractor Services Agreement with Temporary Shelter, Inc. to operate the Tustin Temporary Emergency Shelter; and, 2) Waive competitive solicitation for this one-year extension, as permitted under Title 2, Section §200.320(c) of the Code of Federal Regulations, because the public exigency for this service will not permit a delay resulting from competitive solicitation due to the circumstances of the public health emergency and the increase in homelessness. It is recommended that the City Council, acting in its capacity as the Tustin Housing Authority Commissioners, take the following actions: 3) Authorize the City Manager, in his official capacity as Executive Director of the Tustin Housing Authority, to execute a Third Amendment to the Contractor Services Agreement with Temporary Shelter, Inc. to operate the Tustin Temporary Emergency Shelter; and, DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 Agenda Report — Temporary Shelter, Inc. June 1 , 2021 Page 2 4) Waive competitive solicitation for this one-year extension, as permitted under Title 2, Section §200.320(c) of the Code of Federal Regulations, because the public exigency for this service will not permit a delay resulting from competitive solicitation due to the circumstances of the public health emergency and the increase in homelessness. FISCAL IMPACT In response to the public health emergency, $1 ,053,430 in Community Development Block Grant — coronavirus ("CDBG-CV") funds will be allocated for the operation of TTES for Fiscal Year ("FY") 2021/2022. The City's required term of operations for the emergency shelter expired in March 2021 . CDBG-CV funds may be used to fund the costs of operating the emergency homeless shelter. Due to COVID's impact on economically vulnerable populations and the uncertainty as to the level of continuing impact, the availability of CDBG-CV funds affords the City the ability to respond by extending shelter service provision for an addition year to prevent any potential gaps in service. CORRELATION TO THE STRATEGIC PLAN Strategic Plan Goal B is to ensure Tustin is an attractive, safe and well-maintained community in which people feel pride. Authorizing the Third Amendment to the CSA with Temporary Shelter, Inc. enables the City to respond to the public health emergency's impact and potential long-term impact on homelessness by providing shelter while enforcing no camping and related ordinances, ensuring the City remains attractive, safe and well maintained. BACKGROUND In compliance with an October 26, 2018 Federal District Court Settlement Agreement ("Settlement Agreement"), the City Council authorized on January 15, 2019, a Contractor Services Agreement with Temporary Shelter, Inc. ("TSI") to operate the Tustin Temporary Emergency Shelter, a fifty-seven (57) bed emergency shelter, through March 18, 2020. The Settlement Agreement required the City to open a temporary emergency homeless shelter within 120 days from the date of the Settlement Agreement and the City selected the former Army Reserve site at 2345 Barranca Parkway as the temporary location for the shelter. The January 15, 2019, City Council authorization gave the City Manager authority after one year of operation to amend the CSA with TSI to extend operations for one additional year, which was executed and expired on March 18, 2021 . Although the City had fulfilled the requirement in the DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 Agenda Report — Temporary Shelter, Inc. June 1 , 2021 Page 3 Settlement Agreement to operate an emergency shelter for two (2) years, the City Council on March 2, 2021 , approved a Second Amendment to extend the shelter operations through June 30, 2021 , for the following reasons, among others: 1 . In light of the public health emergency, continuing to house the homeless gave the shelter an opportunity to ensure guests were vaccinated prior to exiting from the shelter as well as being in a controlled environment reduced their risk to being exposed to COVID. 2. At the time of the extension, there were limited referral options for guests at the shelter in some cases due to COVID-related operational restrictions. While these COVID-impacted conditions have improved, the TTES has experienced an increase in the number of homeless guests, especially homeless families since the beginning of the year. The shelter is currently housing more homeless families than at any other time in the shelter's operational history. It is necessary to continue operating an additional year in response to COVID'S impact and potential long-term impact on homelessness. In addition, as COVID-related State and Federal moratoria on evictions expire or are terminated, the demand for homeless shelter facilities in Tustin and regionally are likely to further increase. The additional year provides the City flexibility in responding to the public health emergency and in preventing individuals and families at-risk of homelessness from living on the streets. In the next year, City staff will gain a better understanding of the impact of COVID on homelessness and of the availability of other services and facilities for Tustin homeless. TSI has submitted a total proposed budget of $1 ,053,430 for the Third Amendment period of July 1 , 2021 , through June 30, 2022. Staff is recommending the Housing Authority Commission and City Council authorize the Third Amendment to the CSA with Temporary Shelter, Inc. through June 30, 2022. DocuSigned by: `` DocuSigned by: C,U V tSfb IA f { 6so V _ nd§-Wh 1Koster erfVC JJ485_. Director of Economic Development Deputy Director of Economic Development Tustin Housing Authority Tustin Housing Authority Attachment: Third Amendment to the Contractor Services Agreement with Temporary Shelter, Inc. DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 THIRD AMENDMENT TO CONTRACTOR SERVICES AGREEMENT FOR CITY OF TUSTIN EMERGENCY SHELTER THIS THIRD AMENDMENT TO CONTRACTOR SERVICES AGREEMENT ('Third Amendment") is made and entered into to be effective July 1, 2021, by and between the CITY OF TUSTIN, a municipal corporation and TUSTIN HOUSING AUTHORITY, a California Housing Authority (collectively the "City"), and TEMPORARY SHELTER, INC., a California nonprofit public benefit corporation ("Contactor"). City and Contractor are sometimes referred to herein collectively as the "Parties". RECITALS WHEREAS, the Parties entered into that certain Contractor Services Agreement for City of Tustin Emergency Shelter on January 15, 2019, as amended by that certain First Amendment to the Contractor Services Agreement on March 18, 2020, and as amended by that certain Second Amendment to the Contractor Services Agreement on March 2, 2021 (collectively, the "Agreement")which is incorporated herein by reference, for the operation of the Tustin Temporary Emergency Shelter by Contractor; and WHEREAS, the Agreement will expire on June 30, 2021 unless extended by the Parties; and WHEREAS,the Parties desire to extend the term of the Agreement through June 30,2022, subject to the terms and conditions of this Third Amendment. NOW, THEREFORE, City and Contractor agree as follows: 1. Incorporation of Recitals. The foregoing recitals are true and correct and are incorporated herein by this reference. 2. Capitalized Terms. All capitalized terms used herein and not otherwise defined in this Third Amendment will have the meanings set forth in the Agreement. 3. Scope of Services. In compliance with all the terms and conditions of this Agreement, Contractor shall provide and perform all services identified in the Proposal,including, but not limited to, any labor, staffing, training, equipment, services and items appropriate and necessary to fully and adequately perform the terms and conditions of this Agreement (collectively, the "Services"). Contractor warrants that all Services shall be performed in a competent, professional and satisfactory manner in accordance with all standards prevalent in the industry no matter if City or Contractor is paying the consideration for such Services.Any Services required at the Property not expressly delineated as the responsibility of Contractor herein shall be the responsibility of City, unless otherwise agreed to in writing by both parties. The TTES shall be operated by referral only (i.e., no walk-in guests) and subject to substantially the same admission requirements as the Bridges at Kraemer Place in the city of Anaheim. The TTES shall 1581827.1 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 be open for homeless individuals and/or families twenty-four (24) hours per day, seven days per week. 4. Site of Services. Unless otherwise expressly stated in this Agreement or required by law, all Services shall be performed at and upon the Property where Contractor shall provide a capacity of fifty-seven (57) beds on an emergency basis for homeless individuals and/or families with preference to those from within the City, or with family connections to the City based upon reasonable criteria mutually established by the City and Contractor. 5. Extension. The Term of the Agreement is hereby extended through the end of Fiscal Year 2021/2022. As amended,the Termination Date shall be June 30, 2022. 6. Compensation. Effective July 1, 2021, Contractor shall be compensated and reimbursed only such amounts as are prescribed in Attachment "1", appended to this Third Amendment, in an amount not to exceed$1,053,430 ("Contractor Fee"). 7. Compliance with Law. All applicable Federal Regulations, including without limitation 2 CFR 200.326,24 CFR 570.600-612,appropriate State and County laws and regulations, as well as the General Conditions, appended hereto as Attachment"T', are incorporated herein by reference and made a part of the Agreement. 8. Same Terms and Conditions. Except as modified by this Third Amendment, all terms and conditions of the Agreement shall remain unchanged and in full force and effect. 9. Corporate Authority. The persons executing this Third Amendment on behalf of the Parties warrant that they are duly authorized to execute this Third Amendment on behalf of said Parties, and that by so executing this Third Amendment the Parties are formally bound to the provisions of this Third Amendment. «««««SIGNATURE PAGE FOLLOWS»»»»» 1581827.1 2 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 IN WITNESS WHEREOF,the Parties have executed this Third Amendment as of the dates stated below. "City" Dated: CITY OF TUSTIN, a municipal corporation By: Matthew S. West, City Manager Dated: TUSTIN HOUSING AUTHORITY, a California Housing Authority By: Matthew S.West, Executive Director APPROVED AS TO FORM: David E. Kendig, City Attorney "Contractor" TEMPORARY SHELTER INC., a California nonprofit public benefit corporation By: Dr. James E Palmer III President&CEO 1581827.1 3 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 Attachment"1" to Third Amendment Budget for Temporary Shelter, Inc. —TTES 1581827.1 4 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 BUDGET for Temporary Shelter, Inc. -TTES For the period July 1, 2021 to June 30, 2022 Fiscal Year Budget Administrative Salaries/Professional Services Liability Insurance $ 1,800 Financial Audit $ 16,000 Information Technology User Support $ - Office supplies, postage, printing, phones $ 8,000 Subtotal $ 25,800 Shelter Supervision &Safety Salaries -Shelter Supervisor(+34% Benefits) $ 110,430 Salaries -Care Coordinators (+29% Benefits) $ 351,500 Contracted Shelter Security(2 Personnel 24/7) $ 365,200 Subtotal $ 827,130 Operations and Program Expenses Janitorial Service (incl. laundry) $ 95,000 Meals, Snack and Beverages (Paid by TTES) $ - Paper and Plastic Goods for meals $ 11,000 Pet Supplies and Equipment $ 2,500 Laundry, Toiletry, Trash Bags, Non-janitorial Supplies $ 20,000 Linens, Bedsheets, Mattress Covers $ 2,000 Lyft and ride costs $ 70,000 Subtotal $ 200,500 Budget Total $ 1,053,430 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 Attachment"2" to Third Amendment General Conditions 1581827.1 5 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 ATTACHMENT 2 GENERAL CONDITIONS TO CITY OF TUSTIN CONTRACTOR SERVICES AGREEMENT FOR CITY OF TUSTIN TEMPORARY EMERGENCY SHELTER I. GENERAL PROVISIONS A. General Compliance The CONTRACTOR agrees to comply with all applicable federal, state and local laws and regulations governing the funds provided under this contract. B. Grantor Recognition The CONTRACTOR shall ensure recognition of the role of the City of Tustin in providing services through this Contract. All activities, facilities and items utilized pursuant to this Contract shall be prominently labeled as to funding source. In addition, the CONTRACTOR will include a reference to the support provided herein in all publications made possible with funds made available under this Contract. C. Amendments The CITY and CONTRACTOR may amend this Contract at any time provided that such amendments make specific reference to this Contract, and are executed in writing, signed by a duly authorized representative of both agencies/departments, and approved by the City Council. Any proposed amendment to this Contract shall be submitted to and approved by the CITY, prior to commencement by the CONTRACTOR of any activity covered by said amendment. D. Suspension or Termination In the event of CONTRACTOR'S failure to comply with the provisions of this Contract and pursuant to 24 CFR 85.43 and 85.44, the CITY may withhold or require CONTRACTOR 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. Either party may terminate this Contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service in Paragraph LA above may only be undertaken with the prior approval of the CITY. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps models, photographs, reports or other materials prepared by CONTRACTOR under this Contract shall, at the option of the CITY become the property of the CITY, and CONTRACTOR shall City of Tustin Attachment 2 Page 1 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. CITY may also suspend or terminate this Contract, in whole or in part, if CONTRACTOR materially fails to comply with any terms of this Contract, or with any of the rules, regulations or provisions referred to herein; and the CITY may declare the CONTRACTOR ineligible for any further participation in CITY contracts, in addition to other remedies as provided by law. In the event there is probable cause to believe the CONTRACTOR is in noncompliance with any applicable rules or regulations, the CITY may withhold up to fifteen (15) percent of said contract funds until such time as the CONTRACTOR is found to be in compliance by the CITY, or is otherwise adjudicated to be in compliance. I. Compliance with Fair Housing laws The CONTRACTOR will conduct and administer this contract in conformity with the Fair Housing Act (42 USC 3601-3619) and implementing regulations, as applicable. J. Lead-Based Paint The CONTRACTOR activities related to this contract and concerning lead-based paint will comply with the requirements of 24 CFR Part 35, subparts A, B, J, K, and R. K. Compliance with Laws The CONTRACTOR activities related to this contract will comply with applicable laws. II. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The CONTRACTOR agrees to comply with Attachment C of OMB Circular A-110 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. 2. Cost Principles The CONTRACTOR 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, if the CONTRACTOR is a City of Tustin Attachment 2 Page 2 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 governmental or quasi-governmental agency, the applicable sections of 24 CFR Part 85, "Uniform Administrative Requirements for Grants and Cooperative Contracts to State and Local Governments," for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record-Keeping 1. Records to be Maintained The CONTRACTOR shall maintain all records required by the federal regulations specified in 24 CFR Parts 570.503(b)(2),570.506,570.5078 and that are pertinent to the activities to be funded under this Contract. Such records shall include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; C. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. These records shall be kept available at CONTRACTOR's office during the project's contract period and thereafter for three (3) years from the date CONTRACTOR receives final payment from this contract. 2. Retention The CONTRACTOR shall retain all records pertinent to expenditures incurred under this contract for a period of five (5) years after the termination of all activities funded under this Contract, or after the resolution of all Federal audit findings, which ever occurs later. Records for non-expendable property acquired with funds under this Contract shall be City of Tustin Attachment 2 Page 3 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 retained for five (5) years after final disposition of such property. Records for any displaced person must be kept for five (5) years after he/she has received final payment. 3. Client Data The CONTRACTOR 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 CITY monitors or their designees for review upon request. 4. Property Records The CONTRACTOR shall maintain real property inventory records which clearly identify properties purchased, improved or sold. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b)(8). 5. NationalObiectives The CONTRACTOR agrees to maintain documentation that demonstrates that the activities carried out with funds provided under this Contract meet one or more of the CDBG program's national objectives: 1) benefit low/moderate income persons, 2) aid in the prevention or elimination of slums or blight, 3) meet community development needs having a particular urgency - as defined in 24 CFR Part 570.208. 6. Close-Outs CONTRACTOR obligation to the CITY 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 receivable accounts to the CITY and determining the custodianship of records. 7. Audits & Inspections All CONTRACTOR records with respect to any matters covered by this Contract shall be made available to the CITY, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the CITY or grantor agency deems 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 CONTRACTOR with 30 days after receipt by the CONTRACTOR. Failure of City of Tustin Attachment 2 Page 4 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 the CONTRACTOR to comply with the above audit requirements will constitute a violation of this Contract and may result in the withholding of future payments. The CONTRACTOR hereby agrees to have an annual agency audit conducted in accordance with current CITY policy concerning CONTRACTOR audits. C. Reporting and Payment Procedures 1. Program Income The CONTRACTOR shall report quarterly all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under this Contract. The use of program income by the CONTRACTOR shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitation, the CONTRACTOR may use such income during the contract period for activities permitted under this Contract and shall reduce request for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the CITY at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income and shall be remitted promptly to the CITY. 2. Indirect Costs If indirect costs are charged, the CONTRACTOR will develop an indirect cost allocation plan for determining the appropriate CITY share of administrative costs and shall submit such plan to the CITY for approval. 3. Payment Procedures a. The CITY will pay to the CONTRACTOR funds available under this Contract based upon information submitted by the CONTRACTOR and consistent with any approved budget and CITY policy concerning payments. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the CONTRACTOR, and not to exceed actual cash requirements. Payments will be adjusted by the CITY in accordance with advance fund and program income balances available in CONTRACTOR accounts. In addition, the CITY reserves the right to liquidate funds available under this Contract for costs incurred by the CITY on behalf of the CONTRACTOR. b. Payment by the CITY to CONTRACTOR shall be on a reimbursable basis unless CONTRACTOR has been authorized and issued a cash advance at the discretion of the CITY. City of Tustin Attachment 2 Page 5 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 4. Performance Reports The CONTRACTOR shall submit regular Performance Reports to the CITY in the form, content, and frequency as required by the CITY. a. The CONTRACTOR shall submit Quarterly Performance Reports no later than 15 days after the end of the quarter of the Fiscal Year (July - September, October -December, January - March, April - June). b. The CONTRACTOR shall submit Annual Performance Reports no later than 15 days after the end of the Fiscal Year. D. Procurement 1. Compliance The CONTRACTOR shall comply with current CITY policy concerning the purchase of equipment and shall maintain an inventory record of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the CITY upon termination of this Contract. 2. OMB Standards The CONTRACTOR shall procure materials in accordance with the requirements of Attachment O of OMB Circular A-110 Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards, covering utilization and disposal of property. 3. Travel The CONTRACTOR shall obtain prior written approval from the CITY for any travel outside the metropolitan area with funds provided under this Contract. III. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The CONTRACTOR agrees to comply with Title VI of the Civil Rights Act of 1964, as amended; Title VIII of the Civil Rights Act of 1968, as amended; Sections 104(b) and 109 of the Title I of the Housing and Community Development Act of 1974; Section 504 of the Rehabilitation Act of 1973; the City of Tustin Attachment 2 Page 6 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 Americans with Disabilities Act of 1990; the Age Discrimination Act of 1975; Executive Order 11063, as amended by Executive Order 12259; Executive Order 11246, as amended by Executive Orders 11375 and 12086; and Section 3 of the Housing and Community Development Act of 1968. 2. Nondiscrimination The CONTRACTOR will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital status, or status with regard to public assistance. The CONTRACTOR will take affirmative action to insure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause. 3. Section 504 The CONTRACTOR agrees to comply with any federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 706) which prohibits discrimination against the handicapped in any federally assisted program. The CITY shall provide the CONTRACTOR with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Contract. B. Affirmative Action 1. Approved Plan The CONTRACTOR agrees that it shall be committed to carry out pursuant to the CITY specifications an Affirmative Action Program in keeping with the principles as provided in President's Executive Order 11246 of September 24, 1985. 2. WMBE The CONTRACTOR will use its best efforts to afford women- and minority-owned business enterprises (WMBE) the maximum practicable opportunity to participate in the performance of this Contract. As used in this contract, the term "minority and female business enterprise" means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, "minority City of Tustin Attachment 2 Page 7 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 group members" are Afro-Americans, Spanish speaking, Spanish surnamed or Spanish-heritage Americans, Asian-Americans, and American Indians. The CONTRACTOR may rely on written representations by CONTRACTORs regarding their status as minority and female business enterprises in lieu of an independent investigation. 3. Access to Records The CONTRACTOR shall furnish and cause each of its subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the CITY, HUD or its agents, or other authorized federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. 4. Notifications The CONTRACTOR will send to each labor union or representative of workers with which it has a collective bargaining contract or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or worker's representative of the CONTRACTOR's commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 5. EEO/AA Statement The CONTRACTOR will, in all solicitations or advertisements for employees placed by or on behalf of the CONTRACTOR, state that it is an Equal Opportunity or Affirmative Action employer. 6. Subcontract Provisions The CONTRACTOR will include the provisions of Paragraphs X A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each sub-CONTRACTOR or vendor. C. Employment Restrictions 1. Prohibited Activity The CONTRACTOR is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities, sectarian, or religious activities; lobbying, political patronage, and nepotism activities. City of Tustin Attachment 2 Page 8 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 2. OSHA Where employees are engaged in activities not covered under the Occupational Safety and Health Act (OSHA) of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous or dangerous to the participants' health or safety. 3. "Section 3" Clause a. Compliance Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this Contract, shall be a condition of the federal financial assistance provided under this Contract and binding upon the CITY, the CONTRACTORs and any subcontractors. Failure to fulfill these requirements shall subject the CITY, the CONTRACTOR and any subcontractors, their successors and assigns, to those sanctions specified by the Contract through which federal assistance is provided. The CONTRACTOR certifies and agrees that no contractual or other disability exists which would prevent compliance with requirements. The CONTRACTOR further agrees to comply with these "Section 3" requirements and to include the following language in all subcontracts executed under this Contract: "The work to be performed under this Contract is a project assigned under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 . Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the areas of the project." The CONTRACTOR certifies and agrees that no contractual or other disability exists which would prevent compliance with the requirements. b. Notifications The CONTRACTOR agrees to send to each labor organization or representative of workers with which it has a collective bargaining City of Tustin Attachment 2 Page 9 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 contract or other contract or understanding, if any, a notice advising said labor organization or worker's representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. C. Subcontracts The CONTRACTOR will include Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Grantor Agency. The CONTRACTOR will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135 and will not let any subcontract unless the CONTRACTOR has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. D. Conduct 1. Assignability The CONTRACTOR shall not assign or transfer any interest in this Contract without the prior written consent of the CITY thereto; provided, however, that claims for money due or to become due to the CONTRACTOR from the CITY under this Contract may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the CITY. 2. Subcontracts a. Approvals The CONTRACTOR shall not enter into any subcontracts with any agency or individual in the performance of this Contract without the written consent of the CITY prior to the execution of such Contract. b. Monitoring The CONTRACTOR will monitor all subcontracted services on a regular basis to assure contract compliance. Result of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of the noncompliance. C. Content City of Tustin Attachment 2 Page 10 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 The CONTRACTOR shall cause all of the provisions of this Contract in its entirety to be included in and made a part of any subcontract executed in the performance of this Contract. d. Section Process The CONTRACTOR shall undertake to insure that all subcontracts let in the performance of this Contract shall be awarded on a fair and open competition basis. Executed copies of all subcontracts shall be forwarded to the CITY along with documentation concerning the selection process. 3. Hatch Act The CONTRACTOR agrees that no funds provided, nor personnel employed under this Contract, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V United State Code (Hatch Act). 4. Conflict of Interest The CONTRACTOR agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that if presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Contract. The CONTRACTOR further covenants that in the performance of this Contract no person having such a financial interest shall be employed or retained by the CONTRACTOR hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the CITY or of any designated public agencies or CONTRACTORs which are receiving funds under the CDBG Entitlement program. 5. Lobbying The CONTRACTOR hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or and employee of a member of Congress in connection with the awarding of a Federal contract, the making of any Federal grant, the making of Federal loan, the entering into of any cooperative agreement, and the City of Tustin Attachment 2 Page 11 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of an agency, a member of Congress, an officer or employee of Congress, of an employee of a member of Congress in connection with this federal contract, grant loan, or cooperative agreement, it will complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; C. It will require that the language of paragraph (d) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans and cooperative agreements) and that all CONTRACTORs shall certify and disclose accordingly; and d. Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31 , U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 6. Copyright If this contract results in any copyrightable material, the CITY and/or grantor agency reserves the right to royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work for government purposes. 7. Religious Organization The CONTRACTOR agrees that funds provided under this contract will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the federal regulations specified in 24 CFR 570.2000). 8. Drug-Free Workplace Policy The CONTRACTOR shall establish a Drug-Free Awareness Program to City of Tustin Attachment 2 Page 12 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 inform employees of the dangers of drug abuse in the workplace, the penalties that may be imposed upon employees for drug abuse violations occurring in the workplace, and the assistance programs available to employees. Each employee engaged in the performance of a CITY contract must be notified of this Drug-Free Awareness Program, and must abide by its terms. Failure to establish a program, notify employees, or inform the CITY of a drug-related workplace conviction will constitute a material breach of contract and cause for immediate termination of the contract by the CITY. The CONTRACTOR will or will continue to provide a drug-free workplace by: 1 . Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the CITY's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug-free awareness program to inform employees about: a) The dangers of drug abuse in the workplace; b) The CITY's policy of maintaining a drug-free workplace; c) Any available drug counseling, rehabilitation, and employee assistance programs; and d) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1 ; 4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will: a) Abide by the terms of the statement; and b) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; City of Tustin Attachment 2 Page 13 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 5. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted — a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1 , 2, 3, 4, 5 and 6. IV. ENVIRONMENTAL CONDITIONS A. Air and Water The CONTRACTOR agrees to comply with the following regulations insofar as they apply to the performance of this Contract: • Clean Air Act, 42 U.S.C., 1857, et seq. • Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. • Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R, Part 50, as amended. • National Environmental Policy Act of 1969. • HUD Environmental Review Procedures (24 CFR, Par. 58). B. Historic Preservation City of Tustin Attachment 2 Page 14 of 15 DocuSign Envelope ID: 1 E2128A4-9002-4441-BADO-59ED70CC63B8 The CONTRACTOR agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR, Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this contact. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, State, or local historic property list. City of Tustin Attachment 2 Page 15 of 15