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1991-197-Authorizing The Town Manager To Execute Agreements With FY 1991-92 Nonprofit GranteesRESOLUTION 1991 -197 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE AGREEMENTS WITH FY 1991 -92 NONPROFIT GRANTEES WHEREAS, TOWN has appropriated funds for allocation to various nonprofit public service agencies which provide services to Town of Los Gatos residents; and, WHEREAS, TOWN desires to engage CONTRACTORS who are allocated a portion of TOWN'S funds, to be used during the 1991- 92 Fiscal Year; NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE AS FOLLOWS: 1. Authorize the Town Manager to execute Community Development Block Grant agreements (Exhibit A), with the following: Catholic Charities of Santa Clara County Ombudsman Program Live Oak Adult Day Care Services, Inc. San Jose State University Foundation, The Health Place Second Harvest Food Bank of Santa Clara & San Mateo Counties 2. Authorize the Town Manager to execute Community Grant agreements (Exhibit B), with the following: County of Santa Clara Nutrition Program Senior Coordinating Council of Los Gatos The Teen Counseling Center Transit Assist Art Docents of Los Gatos Los Gatos Museum Association San Jose Symphony Association Youth Science Institute Catholic Charities of Santa Clara County Shared Housing San Jose State University Foundation, The Health Place CSD08:A: \RES0S \CS090391.R00 - 1 - 3. Authorize the Town Manager to execute letters of agreement with the following: Los Gatos Chamber Orchestra Los Gatos High School (Pfeiffer art project) The Photographic Guild of Los Gatos Young Audiences, Inc. of San Jose PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 3rd day of September, 1991, by the following vote: COUNCIL MEMBERS: AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Eric D. Carlson NAYES: None. ABSENT: Mayor Brent N. Ventura ABSTAIN: None. SIGNED: VICE -MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA c ATTEST: CLERK OF THE TOWN OF LOS) GATOS LOS GATOS, CALIFORNIA CSD08:A: \RES0S \CS090391.R00 -2 - AGREEMENT BY AND BETWEEN THE TOWN OF LOS GATOS AND U01 r_- SEVENTEENTH (17) YEAR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM PURSUANT TO THE HOUSING AND COMMUNITY DEVELOPMENT ACTS OF 1974 AND 1977, AS AMENDED THIS AGREEMENT, made and entered into this _ day of , 1991, by and between the TOWN OF LOS GATOS, a municipal corporation of the State of California (hereinafter referred to as "TOWN "), and the ,a nonprofit corporation, (hereinafter referred to as "CONTRACTOR "). THE PARTIES HEREBY AGREE AS FOLLOWS: SECTION 1. RECITALS: TOWN has received Community Development Block Grant funds from the Department of Housing and Urban Development (hereinafter "HUD ") as an entitlement city pursuant to the provisions of Title I of the Housing and Community Development Acts of 1974 and 1977, as amended; and TOWN desires to engage CONTRACTOR who has been allocated a portion of TOWN'S said funds, to be utilized during the time period as set forth in Section 2. Term of Agreement herein. The purpose of this agreement is to implement the Project as described in EXHIBIT B, "SCOPE OF SERVICES ". SECTION 2. TERM OF AGREEMENT: The term of this Agreement shall be from July 1, 1991, to June 30, 1992, inclusive. SECTION 3. SCOPE OF SERVICES AND ASSURANCES: CONTRACTOR shall perform those services as specified in detail on EXHIBIT B entitled, "SCOPE OF SERVICES", which is attached hereto and incorporated herein, and assures and certifies all those matters set forth in EXHIBIT A entitled "ASSURANCES ". SECTION 4. PAYMENTS TO CONTRACTOR: TOWN agrees to reimburse CONTRACTOR a sum of money not to exceed ($ ), according to the schedule set out in EXHIBIT E entitled, "PAYMENTS TO CONTRACTOR ", which is attached hereto and incorporated herein. Revised August 9, 1991 SECTION 5. GENERAL BLOCK GRANT CONDITIONS: CONTRACTOR shall comply with all laws, regulations, policies, guidelines and requirements with respect to the acceptance and use of Federal funds under the Community Development Block Grant Program, including, but not limited to, those detailed in EXHIBIT F entitled, "GENERAL BLOCK GRANT CONDITIONS ", which is attached hereto and incorporated herein. SECTION 6 CODE OF FEDERAL REGULATIONS• CONTRACTOR shall comply with all applicable provisions of the Code of Federal Regulations, as amended, a copy of which is available at the office of the Community Services Department. SECTION 7. INSURANCE AND BONDING: CONTRACTOR shall certify insurability subject to TOWN approval as specified in EXHIBIT D entitled, "INSURANCE AND BONDING ", which is attached hereto and incorporated herein. TOWN'S Attorney may, at his/her discretion, waive any and all insurance requirements in EXHIBIT D. SECTION 8. PROGRAM COORDINATION: A. CITY: The Director of the Community Services Department (hereinafter "MANAGER ") , or his/her designee, shall be the TOWN official responsible for the Community Development Block Grant (CDBG) Program and shall render overall supervision of the progress and performance of this Agreement by TOWN. All services agreed to be performed by TOWN shall be under the overall direction of the MANAGER. B. CONTRACTOR: CONTRACTOR shall assign a single project director who shall have overall responsibility for the progress and execution of this Agreement. Should circumstances or conditions subsequent to the execution of this Agreement require a substitute project director, CONTRACTOR shall notify TOWN immediately of such occurrence. Project director and CONTRACTOR staff will fully cooperate with the MANAGER relating to the project, areas of concern, and the impact of project on residents of TOWN. C. NOTICES: All notices or other correspondence required or contemplated by this Agreement shall be sent to TOWN at the following address: 2 Revised August 9, 1991 Town of Los Gatos Community Services Department P.O. Box 949 Los Gatos, CA 95031 All notices or other correspondence required or contemplated by this Agreement shall be sent to CONTRACTOR at address appearing below CONTRACTOR signature line of this Agreement. SECTION 9. OBLIGATION OF CONTRACTOR: A. Organization of CONTRACTOR: 1. Within 15 days of execution of this Agreement, CONTRACTOR shall deliver the following to the PROGRAM MANAGER: a. The Articles of Incorporation under the laws of the State of California; b. Current by -laws; C. Verification and documentation of Internal Revenue Service nonprofit status under Title 26, Section 501(c) of the Federal Code: d. Names and addresses of current Board of Directors; e. Personnel policies and procedures including Affirmative Action Plan if staff exceeds fifteen (15) employees; f. An organizational chart and staffing profile. Contractor shall report in writing any changes within five (5) days of the effective date. 2. No member of the Board of Directors or the Director's family may be a paid employee, agent or subcontractor of CONTRACTOR. 3. CONTRACTOR'S Board of Directors shall include representation from the broadest possible cross section of the community including: those with expertise and interest in the CONTRACTOR'S services, representatives from community organizations interested in the CONTRACTOR'S services, and users of the CONTRACTOR'S services. Revised August 9, 1991 3 4. Meetings of CONTRACTOR'S Board of Directors, except meetings, or portions thereof, dealing with personnel or litigation matters, shall be open to the public. 5. CONTRACTOR shall keep minutes, approved by the Board of Directors, of all regular special meetings. 6. CONTRACTOR shall encourage public participation in planning and implementing services under this Agreement. B. Program Performance of CONTRACTOR: CONTRACTOR shall: 1. File quarterly narrative reports with the TOWN on the types and numbers of services rendered to beneficiaries through the operation of the project, which reports shall evaluate the manner in which the project is achieving its goals according to standards established by TOWN. The reports shall be due within ten (10) working days of the end of each quarter and shall cover the month immediately preceding the date on which the report is filed. Said reports shall be made on forms approved by TOWN. 2. Submit on a quarterly basis, within ten (10) working days of the end of the quarter, a reimbursement request containing a summary statement of expenditures and revenue for the quarter immediately preceding the date on which the report is filed and cumulative totals from the effective date of this Agreement. Said reports shall be made on forms approved by TOWN. 3. Coordinate its services with other existing organizations providing similar service in order to foster community cooperation and to avoid unnecessary duplication of services. 4. Include an acknowledgement of TOWN funding and support on appropriate publicity and publications using words to the effect that "services are funded in whole or in part by Town of Los Gatos ". 4 Revised August 9, 1991 5. Submit to the Department of Housing and Urban Development (hereinafter "HUD ") or TOWN at such times and in such forms as HUD or TOWN may require, such statements, records, reports, data, and information pertaining to Revised August 9. 1991 5 matters covered by this Agreement. 6. Maintain offices to meet the needs of the services offered by the project pursuant to this Agreement. Said offices should be located within the Town of Los Gatos and shall be subject to the approval of the MANAGER. C. Fiscal Responsibilities of CONTRACTOR: CONTRACTOR shall: 1. Appoint and submit to TOWN, the name of a fiscal agent who shall be responsible for the financial and accounting activities of the CONTRACTOR, including the receipt and disbursement of CONTRACTOR funds. 2. Establish and maintain a system of accounts that shall be in conformance with generally accepted principles of accounting for budgeted funds. Such system of accounts shall be subject to review and approval of TOWN. 3. Document all costs by maintaining complete and accurate records of all financial transactions, including but not limited to contracts, invoices, time cards, cash receipts, vouchers, cancelled checks, bank statements and /or other official documentation evidencing in proper detail the nature and propriety of all charges. 4. Submit to the TOWN, within ten (10) working days of the end of the preceding quarter, requests for reimbursement, together with all supporting documentation. 5. Certify insurability subject to TOWN approval as outlined in EXHIBIT D entitled, "INSURANCE AND BONDING ". 6. Submit to HUD or TOWN at such times and in such forms as HUD or TOWN may require, such statements, records, reports, data, and information pertaining to matters covered by this Agreement. Revised August 9. 1991 5 D. Records reports and Audits of CONTRACTOR: 1. Establishment and Maintenance of Records. CONTRACTOR shall maintain records, including but not limited to, books, financial records, supporting documents, statistical records, personnel, property, and all other pertinent records sufficient to reflect properly: a. All direct and indirect costs of whatever nature claimed to have been incurred and anticipated to be incurred to perform this Agreement; and, b. All other matters covered by this Agreement. Such records shall be maintained in accordance with requirements now or hereafter prescribed by the TOWN. 2. Preservation of Records. CONTRACTOR shall preserve and make available its records: a. until the expiration of three (3) years from the date of final payment to CONTRACTOR under this Agreement; or, b, for such longer period, if any, as may be required by applicable law; or, C. if this Agreement is completely or partially terminated, the records relating to the work terminated shall be preserved and made available for a period of three (3) years from the date of any resulting final settlement. 3. Examination of Records: Facilities. At any time during normal business hours, and as often as may be deemed necessary, CONTRACTOR agrees that HUD and /or TOWN, and /or any of their respective authorized representatives shall until the expiration of: a. three (3) years after final payment under this Agreement; or, b. such longer period as may be prescribed, have access to and the right to examine its plants, offices and facilities engaged in performance of 6 Revised August 9. 1991 this Agreement and all its records with respect to all matters covered by this Agreement. CONTRACTOR also agrees that HUD and /or TOWN, or any of their respective authorized representatives shall have the right to audit, examine, and make excerpts or transcripts of and from such records, and to make audits of all contracts and sub- contracts, invoices, payrolls, records of personnel, conditions of employment, materials, and all other data relating to matters covered by this Agreement. 4. Audits: a. Independent Audits. TOWN may require CONTRACTOR to perform an independent fiscal audit at least annually, in conformance with generally accepted standard accounting principles. Such audits must identify the funds received and disbursed relating to this Agreement. The costs for such audits shall be at CONTRACTOR'S expense, unless otherwise provided for in this Agreement. Copies of the completed audits shall be provided to the MANAGER. b. Town Audits. The TOWN may perform an independent audit. Such audits may cover programmatic as well as fiscal matters. CONTRACTOR will be afforded an opportunity to respond to any audit findings, and have the responses included in the final audit report. Costs of such audits will be borne by the TOWN. C. Disallowed Costs. CONTRACTOR is liable for repayment of disallowed costs as determined by TOWN and /or HUD. Disallowed costs may be identified through audits, monitoring or other sources. CONTRACTOR shall be afforded the opportunity to respond to any adverse findings which may lead to disallowed costs. MANAGER shall make the final Revised August 9, 1991 7 determination of disallowed costs, subject to provisions of OMB circular A -122, Cost Principles for Nonprofit Organizations and applicable HUD regulations. E. Contracting and Assignability Requirements: 1. Duties under this Agreement shall not be delegated or assigned by CONTRACTOR nor shall any of the work or services to be performed hereunder be subcontracted to third parties except to the extent and in the manner hereinafter provided. 2. CONTRACTOR shall submit to TOWN at least ten (10) days prior to their execution all contracts or subcontracts when the total anticipated expense of ONTRACTOR from funds under this Agreement exceeds One Hundred Dollars ($100). Said contracts shall be in writing and shall provide that all parties shall be bound by the provisions of this Agreement to the same extent that CONTRACTOR is bound hereby. It is hereby agreed that TOWN may require a CONTRACTOR to terminate any contract or subcontract upon giving CONTRACTOR written notice to do so and upon good cause shown. CONTRACTOR shall terminate such contract or subcontract within twenty (20) days of receipt of said notice. CONTRACTOR'S contract or subcontract shall provide for termination by CONTRACTOR within twenty (20) days of receipt of said notice from TOWN. As an alternative to the requirement CONTRACTOR'S contract or subcontract shall provide for such twenty (20) day termination of CONTRACTOR and the right of TOWN by written notice to CONTRACTOR to exercise said right of termination, at the sole discretion of MANAGER. TOWN may waive such termination requirement by CONTRACTOR under terms and conditions acceptable to MANAGER. In the case of any contract or subcontract for work with a private contractor, concurred in by the TOWN, CONTRACTOR shall record and retain the following records: Revised August 9, 1991 a. an explanation of how the amount of compensation or reimbursement to be paid was determined; b. identification of each prospective contractor considered; C. summary of bids and proposals, if any, received; d, justification for noncompetitive procurement of contract services and reasons for the selection of the CONTRACTOR, or the justification for selection of other than the lowest bidder in competitive procurement. 3. No subcontractor of CONTRACTOR will be recognized by TOWN as such rather, all subcontractors ar deemed to be employees of CONTRACTOR, and CONTRACTOR agrees to be responsible for subcontractor's performance and any liabilities attaching to subcontractor's actions or omissions. 4. CONTRACTOR shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without the prior written consent of the TOWN thereto. F. Independent Contractor' 1. It is understood and agreed by and between the parties hereto that CONTRACTOR, in the performance of this Agreement, shall act as and be an independent contractor and not an agent or employee of TOWN, and that as an independent contractor, CONTRACTOR shall obtain no rights to retirement benefits or other benefits which accrue to TOWN employees, and CONTRACTOR expressly waives any claims it may have to such rights. 2. Certain Policy Matters. It is understood and agreed by and between the parties hereto that CONTRACTOR in the performance of this Agreement, shall not act, nor is it at any time authorized to act, as the agent or representative of TOWN in any matter involving or affecting local, state or federal policy. CONTRACTOR Revised August 9, 1991 9 agrees that it will not in any matter hold itself out as the agent or representative of TOWN or act in such a fashion and would give the impression to a reasonable person that CONTRACTOR is acting in such a capacity in such matters. Nothing in this paragraph, however, shall prevent CONTRACTOR from fully and freely expressing its views on any matter involving or affecting policy in a manner not inconsistent with the terms hereof. G. Compliance With Laws: 1. CONTRACTOR shall become familiar and comply and cause all its subcontractors and employees, if any, to become familiar and comply with all applicable federal, state and local laws, ordinances, codes, regulations and decrees including but not limited to those federal rules and regulations detailed in EXHIBIT F entitled, "GENERAL BLOCK GRANT CONDITIONS ", which is attached hereto and incorporated herein. Failure of TOWN to in any manner observe and adhere to law, as described herein or as amended, shall in no way relieve CONTRACTOR of its responsibility to adhere to same and CONTRACTOR herein acknowledges this responsibility. 2. All activities of CONTRACTOR under this Agreement shall either principally benefit low and moderate income persons, aid in the prevention of slums and blight, or meet other community development needs having a particular urgency. CONTRACTOk shall be responsible for verifying, in a manner satisfactory to TOWN, that project and activities meet the above requirements. H. Purchasine: 1. Title to Property. Title to any personal property used in the performance of the services and work specified in this Agreement shall be as follows: a. Personal property donated or purchased with other than TOWN CDBG funds shall become the property of 10 Revised August 9, 1991 CONTRACTOR or person specified by the donor or funding source; otherwise, the same shall become the property of TOWN except for property and equipment as described in subparagraph (b) hereof. b. Personal property and equipment permanently affixed to buildings owned by CONTRACTOR shall become the property of CONTRACTOR. C. All other personal property, supplies and equipment purchased pursuant to this Agreement and not consumed shall become property of TOWN. 2. Non - Expendable Property_ Non - expendable property purchased by CONTRACTOR with funds provided by TOWN, with a purchase price in excess of Five Hundred Dollars ($500), must be approved in advance in writing by TOWN. TOWN shall retain title to said property. If project will be continued beyond termination of this Agreement, TOWN, at its option, may revert title to CONTRACTOR. 3. Purchase of Real Property_ None of the funds provided under this Agreement shall be used for the purchase of real property, or for the purchase of an option on the purchase of real property, unless the Council of the Town of Los Gatos approves such purchase or option to purchase by resolution prior to the time when CONTRACTOR enters into a contract for such purchase or option to purchase. Any such purchase or option shall be processed through the MANAGER. SECTION 10. MONITORING AND EVALUATION: TOWN staff shall provide assistance to CONTRACTOR in connection with the following: A. Contract Compliance: 1. Conformity of the project with the TOWN'S policies and procedures and all TOWN codes, ordinances, directives, and laws. 2. Providing citizen participation and input on the project through TOWN'S Community Services Commission. Revised August 9, 1991 11 3 C 3. Review of contract for compliance purposes and evaluating project based on monthly reports received from CONTRACTOR. 4. Initiating referrals to the project from concerned citizens. Monitoring and Evaluation of Services: Evaluation of the project performance shall be the responsibility of TOWN. CONTRACTOR shall furnish all data, statements, records, information, and reports necessary for TOWN to monitor, review and evaluate the performance of the project and its components. TOWN shall have the right to request the services of an outside agent to assist in any such evaluation. Such services shall be paid for by TOWN. Unsatisfactory Performance: CONTRACTOR shall be considered to be performing in an unsatisfactory manner if shown to be providing one or more services below established goals as stated in EXHIBIT B entitled, "SCOPE OF SERVICES ". Should the project fail to meet one or more of the performance goals established in the "SCOPE OF SERVICES ", such occurrence will be reviewed and addressed by MANAGER acting for TOWN. Contractors coming under review of the type described herein will be notified and shall have the opportunity to provide any relevant information to TOWN prior to any further action being taken. Following such review, TOWN may forward to CONTRACTOR a set of specific corrective actions relative to unsatisfactory project performance and a timetable for implementation of corrective actions. CONTRACTOR shall provide to TOWN, within the time specified, any information or documentary evidence required by TOWN concerning CONTRACTOR'S progress in implementing said corrective actions and /or the results of said corrective actions. In the event CONTRACTOR does not implement the corrective actions in accordance with the corrective action timetable, TOWN may suspend payments hereunder or provide notice of intent to terminate this Agreement. Where specific 12 Revised August 9, 1991 numerical goals are contained in the "SCOPE OF SERVICES ", the MANAGER shall have the authority to modify project goals stated in EXHIBIT B entitled, "SCOPE OF SERVICES ", upon mutual agreement of the parties, provided such change does not increase or decrease the goal by more than ten percent (10 %), subject to MANAGER'S determination that all of the following conditions exist: 1. The CONTRACTOR has made a good faith effort to comply with all recommended corrective actions to improve project performance and /or to comply with all provisions of their Agreement with TOWN. 2. Changes of a significant or long -term nature have occurred in the economy, applicable laws, regulations, or other relevant environmental factors which may prevent or render unfeasible the attainment of required level(s) of performance stated in EXHIBIT B entitled, "SCOPE OF SERVICES ". 3. Modification of project performance levels is consistent with the original purpose or intent of the project and will not substantially reduce the project's overall level of service to project beneficiaries. Should conditions prohibit the provisions of project services so as to substantially inhibit project's ability to provide services at a level and /or in a manner consistent with the original purpose or intent of the project, or if the proposed modification varies by more than ten percent (10 %) from the original goal, MANAGER shall recommend to the Town Manager action(s) including, but not limited to, the following: 1. modification of the goal; 2. substantive modification of the purpose of the project or the types or relative proportions of project services; 3. reduction of the level of project funding; 4. termination of Agreement between CONTRACTOR and TOWN. Revised August 9, 1991 13 D. Contract Noncompliance: Upon receipt by TOWN of any information that evidences a failure by CONTRACTOR to comply with any provision of this Agreement, the TOWN shall have the right to require corrective action to enforce compliance with such provision. TOWN shall have the right to require the presence of any of CONTRACTOR'S officers at any hearing or meeting called for the purpose of considering corrective action. SECTION 11 DISCLOSURE OF CONFIDENTIAL INFORMATION: TOWN and CONTRACTOR agree to maintain the confidentiality of any information regarding applicants for services offered by the project pursuant to this Agreement or their immediate families which may be obtained through application forms, interviews, tests, reports, from public agencies or counselors, or any other source. Without the permission of the applicant, such information shall be divulged only as necessary for purposes related to the performance or evaluation of the services and work to be provided pursuant to this Agreement, and then only to persons having responsibilities under the contract, including those furnishing services under the project through subcontracts. SECTION 12. AMENDMENTS: Unless otherwise authorized by this Agreement, amendments to the terms and conditions of this Agreement shall be requested in writing by the party desiring such revision, and any such adjustment to this Agreement shall be determined and effective only upon the mutual Agreement in writing of the parties hereto. Notwithstanding anything contained in this Agreement to the contrary the Town Manager shall have the authority on behalf of TOWN to amend this Agreement provided such amendment does not result in an increase or decrease in the dollar amount set forth in SECTION 4 herein. SECTION 13. HOLD HARMLESS: CONTRACTOR shall indemnify and save TOWN, its officers, employees and elected officials, boards, and commissions, harmless with respect to any damages arising from: A. Any noncompliance by CONTRACTOR with laws, ordinances, codes, regulations, and decrees; 14 Revised August 9. 1991 B. Any torts committed by CONTRACTOR in performing, or failing to perform, any of the work or services embraced by this Agreement; C. All suits, actions, claims, causes of action, costs, demands, judgments, and liens arising out of: (1) CONTRACTOR'S failure to comply with or carry out any of the provisions of this Agreement; and (2) CONTRACTOR'S acts or omissions under this Agreement including, but not limited to, the adequacy, design, and condition of the finished product and improvements described in EXHIBIT B III. SECTION 14. WHEN RIGHTS AND REMEDIES WAIVED: In no event shall any payment by TOWN or any acceptance of payment by CONTRACTOR hereunder constitute or be construed to be a waiver by TOWN or CONTRACTOR of any breach of covenants or conditions of this Agreement or any default which may then exist on the part of TOWN or CONTRACTOR and the making of any such payment or the acceptance of any such payment while any such breach or default shall exist, shall in no way impair or prejudice any right or remedy available to TOWN or CONTRACTOR with respect to such breach or default. SECTION 15. SUSPENSION OR TERMINATION OF PAYMENT AND WORK OR EXPENDITURES: MANAGER may without prior notice to CONTRACTOR, at any time in its absolute discretion, elect to suspend or terminate payment to CONTRACTOR in whole or in part terminate work or expenditures by CONTRACTOR under this Agreement, or not to make any particular payment under this Agreement in the event of any of the following occurrences, to wit: A. If CONTRACTOR (with or without knowledge) shall have made any material misrepresentation of any nature with respect to any information or data furnished to TOWN in connection with the project; B. If there is pending litigation with respect to the performance by CONTRACTOR of any of its duties or obligations under this Agreement which may materially jeopardize or adversely affect the undertaking of or the carrying out of the project; C. If CONTRACTOR shall have taken any action pertaining to the project which requires TOWN approval without having obtained such approval; Revised August 9, 1991 15 D. If CONTRACTOR is in default under any provisions of this Agreement; E. If CONTRACTOR makes improper use of grant funds; F. If CONTRACTOR fails to return to TOWN by September 30, 1991, all funds in excess of reimbursable expenditures received from TOWN pursuant to the previous Agreement between TOWN and CONTRACTOR; G. If CONTRACTOR fails to comply with any of the terms and conditions of this Agreement in such a manner as to constitute material breach thereof; H. If CONTRACTOR submits to TOWN any reports which are incorrect or incomplete in any material respect. SECTION 16. TERMINATION OF AGREEMENT: A. Town Manager of TOWN may at his/her discretion and without prior written or oral notice terminate this Agreement for any reasons set forth in Subsection A through H of SECTION 15. B. Unearned payment under this Agreement may be suspended or terminated by MANAGER upon refusal by CONTRACTOR to accept any additional conditions that may be imposed by HUD or TOWN at any time, or if the current grant Agreement between TOWN and HUD is suspended or terminated. C. Upon suspension or termination, CONTRACTOR shall: 1. Be paid for all services actually rendered to TOWN to the date of such suspension or termination; provided, however, if this Agreement is suspended or terminated for fault of CONTRACTOR, TOWN shall be obligated to compensate CONTRACTOR only for that portion of CONTRACTOR'S services which are of benefit to TOWN. 2. Turn over to TOWN immediately any and all copies of studies, reports and other data, whether or not completed, prepared by CONTRACTOR or its subcontractors, if any, in connection with this Agreement. Such materials shall become property of TOWN. CONTRACTOR, however, shall not be liable for TOWN'S use of incomplete materials or for TOWN'S use of complete documents if used 16 Revised August 9, 1991 for other than the services contemplated by this Agreement. D. Disposition of Property Upon Termination. In the event of the termination of this Agreement under any applicable section of this Agreement, or at the end of the term of this Agreement specified hereinabove, CONTRACTOR shall return all personal property to which TOWN has title to a place and in a manner directed by TOWN. If TOWN directs the return of said personal property at the end of the term of this Agreement, or if the TOWN prior to said expiration of the term of this Agreement itself terminates this Agreement, TOWN shall pay the cost for such return of all personal property to which TOWN has title to the place and in the manner directed by the TOWN. if CONTRACTOR, prior to said expiration of the term of this Agreement itself terminates this Agreement, CONTRACTOR shall pay the costs for such return of all personal property to which TOWN has title to the place and in the manner directed by TOWN. The foregoing provisions regarding disposition of property notwithstanding, the TOWN may, by written notification to CONTRACTOR, authorize CONTRACTOR to retain such personal property, in which event title to such personal property shall vest in CONTRACTOR unless TOWN otherwise directs. SECTION 17. INTEGRATED DOCUMENT: This Agreement embodies the entire Agreement between TOWN and CONTRACTOR and its terms and conditions. No verbal Agreements or conversations with any officer, agent or employee of TOWN prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this AGREEMENT. Any such verbal Agreement shall be considered as unofficial information and in no way binding upon TOWN. SECTION 18. SEVERABILITY OF PROVISIONS: If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby, if such remainder would then continue to conform to the terms and requirements of applicable law. Revised August 9. 1991 17 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first hereinabove set forth. APPROVED AS TO FORM: Katherine Anderton Town Attorney ATTEST: Marian V. Cosgrove, Town Clerk APPROVED AS TO CONTENT: Regina A. Falkner Community Services Director CSD13:A: \C0NTRACT \CDBGAGRE.'91 18 Revised August 9, 1991 TOWN OF LOS GATOS: David W. Knapp Town Manager CONTRACTOR Name Address EXHIBIT A. ASSURANCES The CONTRACTOR assures and certifies to the TOWN that: 1. It possesses legal authority to apply for the grant; that a resolution, motion or similar action has been duly adopted or passed as an official act of the CONTRACTOR'S governing body, authorizing the filing of the application, including all understandings and assurances contained herein, and directing and authorizing the person identified as the official representative of the CONTRACTOR to act in connection with the application and to provide such additional information as may be required. 2. It will comply with Title VI. of the Civil Rights Act of 1964 (42 USC 2000[a]) prohibiting employment discrimination where (1) the primary purpose of a grant is to provide employment or (2) discriminatory employment practices will result in unequal treatment of persons who are or should be benefitting from the grant aided activity. 3. Not excluded from participation in, deny the benefits of, or subject to discrimination under any PROGRAM or activity; any person in the United States on the grounds of race, color, national origin, sex, age, religion or handicap status in accordance with the Age Discrimination Act of 1975, Section 504 of the Rehabilitation Act of 1973, Civil Rights Act of 1964 or Title VII. of the Act of 1968. 4. It will comply with the provisions of the Hatch Political Activity Act 5 USC 1501 et seq. which limit the political activity of employees. 5. It will establish safeguards to prohibit employees of CONTRACTOR or Federal, State or Local Governments from using their positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business, or other ties. 6. Comply with the applicable provisions of the Political Reform Act of 1974 relating to conflicts of interest (codified in California Government Code Section 87100, at seq.) and promptly advise TOWN of the facts and circumstances concerning any disclosure made to it or any information obtained by it relating to conflicts of interest. 7. It will comply with Section 504 of the Rehabilitation Act of 1973, as amended (29 USC 794) . CSD13:A: \C0NTRACT \CDBGAGRE.'91 Revised August 9, 1991 19 AGENCY: I II EXHIBIT B SCOPE OF SERVICES FISCAL YEAR 1991 -92 PROGRAM GOALS AND OBJECTIVES: CLIENTS A. Total number of unduplicated Los Gatos residents to participate in program: B. Demographic Reports Demographic data regarding clients served, and handicapped status shall be submitte;' Community Development Block Grant Page 1 of 2 CSD13::. 20 Revised August 9, 1991 income, sex, race, age, ^uarterly. iTRACT \ \CDBGAGRE.'91 EXHIBIT B SCOPE OF SERVICES FISCAL YEAR 1991 -92 III. DIRECT SERVICES TO BE PROVIDED TO LOS GATOS RESIDENTS: A. M C. a IM IV. INDIRECT SERVICES TO BE PROVIDED TO LOS GATOS RESIDENTS A. Q C. Community Development Block Grant Quarterly Services Goals 1st 2nd 3rd 4th Annual Totals Page 2 of 2 CSD13:A: \CONTRACT \CDBGAGRE.'91 Revised August 9, 1991 21 PROGRAM BUDGET SOURCE INCOME EXHIBIT C. BUDGET 1. TOTAL ALLOCATION ORGANIZATION OF FUNDS ACTUAL PROGRAM BUDGET (IN DOLLARS) 1990 -91 1991 -92 1991 -92 TOWN OF LOS GATOS OTHER CITIES STATE FEDERAL OTHER MUNICIPALITIES FEES FOR SERVICES FUND RAISING, DONATIONS (CASH) RESERVE CONTINGENCY FUND ALL OTHER (LIST) -------------------- -------------------- --------------- - - - -- TOTAL INCOME NOTE: ALL AMOUNTS SHOULD BE ROUNDED TO THE NEAREST DOLLAR Page 1 of 2 CS013:A: \C0NTRACT \C0843AGRE.'91 22 Revised August 9, 1991 EXHIBIT C. BUDGET 1. ALLOCATION PROGRAM BUDGET TOTAL OF FUNDING ACTUAL PROGRAM BUDGET (IN DOLLARS) 1990 -91 1991 -92 1991 -92 EXPENSES CAPITAL EXPENSES PERSONNEL SUPPLIES COMMUNICATIONS PRINTING /ADVERTISING UTILITIES SPACE RENTAL EQUIP. RENTAL TRAVEL (LOCAL) TRAVEL (OTHER) CONTRACTUAL SERVICES FRINGE INSURANCE MISCELLANEOUS EQUIPMENT SUBTOTAL EXPENSES CAPITAL OUTLAY BUILDINGS EQUIPMENT SUBTOTAL EXPENSES TOTAL EXPENSES AND CAPITAL OUTLAY Page 2 of 2 NOTE: ALL AMOUNTS SHOULD BE ROUNDED TO THE NEAREST DOLLAR Revised August 9, 1991 23 EXHIBIT D. INSURANCE REQUIREMENTS FOR CONTRACTORS Contractor shall procure and maintain for the duration of the contract, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors. The cost of such insurance shall be borne by the Contractor. A. MINIMUM SCOPE OF INSUk,.. Coverage shall be at least as broad as: 1. Insurance services Office form number GL 0002 (Ed. 1/73) covering Comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage ( "occurrence" form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed 1/78) covering Automobile Liability, code 1 "any auto" and endorsement CA 0025. 3. Workers' Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance. B. MINIMUM LIMITS OF INSURANCE Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project /location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. 3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. C. DEDUCTIBLES AND SELF - INSURED RETENTIONS Any deductibles or self- insured retentions must be declared to and approved by the Town. At the option of the Town, either: the insurer shall reduce 24 Revised August 9, 1991 -2- or eliminate such deductibles or self- insured retentions as respects the Town its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investiga- tions, claim administration and defense expenses. D. OTHER INSURANCE PROVISIONS The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages a. The Town, its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor, products and completed operations of the Contractor, premises owned, occupied or used by the Contractor, or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the Town, its officers, officials, employees or volunteers. b. The Contractor's insurance coverage shall be primary insurance as respects the Town, its officers, officials, employees and volunteers. Any insurance or self - insurance maintained by the Town, its officers, officials, employees or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. C. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its officers, officials, employees or volunteers. d. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Workers' Compensation and Employers Liability coverage The insurer shall agree to waive all rights of subrogation against the Agency, its officers, officials, employees and volunteers for losses arising from work performed by the contractor for the Town. Revised August 9, 1991 25 -3- 3. All Coverages Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty (30 days' prior written notice by certified mail, return receipt requested, has been given to the Town. E. ACCEPTABILITY OF INSURERS Insurance is to be placed with insurers with a Best's rating of no less than A:VII. F. VERIFICATION OF COVERAGE Upon execution of this agreement, Contractor shall furnish the Town with certificates of insurance and with original endorsements effecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms provided by the Town. Where by statute, the Town's workers' compensation - related forms cannot be used, equivalent forms approved by the Insurance Commissioner are to be substituted. All certificates and endorsements are to be received and approved by the Town before work commences. The Town reserves the right to require complete, certified copies of all required insurance policies, at any time. G. SUBCONTRACTORS Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. CSD13:A: \CONTRACT \CDBGAgre.'91 26 Revised August 9, 1991 EXHIBIT E. 2. PAYMENTS TO CONTRACTOR 1.01 PAYMENTS TO CONTRACTOR. TOWN agrees to pay CONTRACTOR for the performance of the services, work, and duties, subject to and performed in connection with this Agreement a sum of money not to exceed the amount set forth in EXHIBIT C, "BUDGET ". Such sum shall be expended and paid by TOWN to CONTRACTOR during the term of this Agreement on a reimbursement basis for services actually performed by CONTRACTOR and for eligible costs actually incurred by and paid by CONTRACTOR pursuant to this Agreement, for the cost categories appearing in this section, upon receipt by TOWN of a statement or statements in a form approved by TOWN and specifying in detail the services performed by and the costs incurred by and paid by CONTRACTOR during the month for which payment is requested. In no event shall CONTRACTOR overrun the total budget for any quarter without securing prior written approval from the TOWN. Payment to CONTRACTOR shall be made according to the schedule below upon receipt by TOWN of Performance Report described in Section II B.2. and Budget Report described in Section II C.7. and all such required statements and supporting documents, including but not limited to, paid invoices, provided that TOWN determines that the items on such statements and supporting data for which payment is requested can properly be paid under this Agreement. In making such determination, TOWN may rely upon the certification by CONTRACTOR that the items appearing on said statement and supporting data are eligible items for payment under this PROGRAM and Agreement, and such determination by TOWN shall in no way constitute a waiver by TOWN of its right to recover from CONTRACTOR the amount of any money paid to CONTRACTOR on any item which is not eligible for payment under the PROGRAM and this Agreement. QUARTERLY STATEMENT AND PERFORMANCE REPORT DUE PAYMENT DATE First Quarter (July -Sept) Oct. 15, 1991 Oct. 25, 1991 Second Quarter (Oct -Dec) Jan. 15, 1992 Jan. 31, 1992 Third Quarter (Jan -March April 15, 1992 Apr. 24, 1992 Fourth Quarter (April -June) July 15, 1992 Jul. 31, 1992 The total amount of such payments to be made to CONTRACTOR shall be distributed as shown in EXHIBIT C, "BUDGET ". Revised August 9, 1991 27 -2- Personnel: Total eligible payments made to CONTRACTOR'S employees for time actually worked for all positions listed in EXHIBIT B, "SCOPE OF SERVICES ". Supplies: Eligible costs for consumable commodities which have a useful life of one (1) year or less, or which cost less then Five Hundred Dollars ($500) and which render services essential to the operation of the PROGRAM. Communications: Eligible costs for telephone, telegraph, postage, and other communication costs which are essential to the operation of the PROGRAM. Printing and Advertisinz: Eligible costs for printing and duplicating services; newspaper printing by contract; and newspaper advertising which is essential to the operation of the PROGRAM. Utilities: Eligible costs incurred for water, gas, electric, garbage and trash collection, and similar expenses. Space Rental: Eligible costs for building space used in connection with the PROGRAM, including rent, maintenance and janitorial services when included in the lease, not including fixtures, furniture, equipment or utilities. Equipment Rental: Eligible costs for rental of equipment defined as tangible property other than land and buildings, or building improvements. Travel (Local): Allowable reimbursement to employees for actual automobile mileage transportation, and all necessary and ordinary travel expenses while on official PROGRAM business within the County of Santa Clara. Travel (Other): Travel outside of the County of Santa Clara. All out -of -state travel must be approved by TOWN prior to any expenditure for such travel. Allowable reimbursement to employees for actual automobile mileage, transportation, lodging, meals, and all ordinary and necessary travel expenses while on official PROGRAM business, as it may from time -to -time be amended. All conferences, seminars, and similar meetings in which the cost is One Hundred Dollars ($100) or more per person require prior TOWN approval. Revised August 9. 1991 28 -3- Contractual Services: Eligible payments for contractual expert services of a professional, scientific, or technical nature, as well as eligible payments made to contractors for performing construction work or any other services which the PROGRAM does not have the capability of performing itself. Contracts or subcontracts in excess of One Hundred Dollars ($100) require prior approval by TOWN. Fringe: Eligible payroll related costs of health insurance, retirement fund contributions, FICA, and other payments made on behalf of the employee. Insurance: Eligible costs of insurance and other related services. Miscellaneous: Eligible costs and payments for any item not in other cost categories. Any expenditure in this category for an item costing more than One Hundred Dollars ($100) shall require prior approval of the TOWN. Equipment: Eligible payments for the purchase of equipment which is defined as tangible property having .a useful life of more than one (1) year, the unit cost of which is Five Hundred Dollars ($500) or more. All equipment purchases require prior TOWN approval. "Eligible ", as used in this Agreement, means those costs, payments, and disbursements for activities. 1.102 RECYCLING OF PROGRAM FUNDS. TOWN shall review on a monthly basis the monthly expenditures if any, for services performed and costs incurred by CONTRACTOR provided in this Exhibit. If such review reveals that said expenditures budgeted on a monthly basis in any such month for the PROGRAM as a whole or any cost category thereof, is below the total amount allocated under this Agreement for the total PROGRAM or cost category thereof for such month, TOWN may channel the amount of such underspending, in the case of underspending in a cost category, into another cost category of the PROGRAM or, in the case of underspending in the PROGRAM as a whole, to another project. TOWN shall, before rechanneling, give CONTRACTOR ten (10) days' written notice of its intention to recycle funds, together with a copy of TOWN'S monthly expenditure review for the PROGRAM and statement of its reasons for such recycling. TOWN shall make its final determination with respect to recycling only after CON- TRACTOR has been given an opportunity to present its views and recommendations Revised August 9, 1991 29 IVE with respect to such contemplated recycling. In no event, however, shall TOWN be bound to accept CONTRACTOR'S views or recommendations with respect to such contemplated recycling. If the expenditures by CONTRACTOR in any month, for the PROGRAM or any cost category thereof, exceed the total amount allocated to the PROGRAM or any cost category thereof by this Agreement, TOWN may terminate non - salary expenditures for the PROGRAM for such period of time as is necessary to bring expenditures into conformance with this Agreement. The MANAGER may at the request of CONTRACTOR approve rechanneling of funds from any cost category or categories to any other cost category or categories at any time provided that: (1) there is no increase in the total amount specified in this Agreement, and (2) the goals and objectives set forth in EXHIBIT B "SCOPE OF SERVICES ", are not negatively affected. Approval by the MANAGER of such rechanneling of funds must be in writing. CSD13:A: \C0NTRACT \CDBGAGRE.'91 Revised August 9, 1991 30 EXHIBIT F. GENERAL BLOCK GRANT CONDITIONS CONTRACTOR hereby assures and certifies that it will comply with all regulations, policies, guidelines and requirements applicable to the acceptance and use of Federal funds for this federally- assisted program. Also, CONTRACTOR gives assurances and certifies with respect to the Program that: A. The Program will be conducted and administered in compliance with: 1. Title VI of the Civil Rights Act of 1964 (Pub. L. 88- 325, 42 USC 2000d et seq.) and implementing regulations issued at 24 CFR Part I; 2. Title VIII of the Civil Rights Acts of 1968 (Pub. L. 90- 284, 42 USC 3061 et seq.), as amended, and implementing regulations; 3. Section 109 of the Housing and community Development Act of 1974, as amended; and the regulations issued pursuant to thereto (24 CFR Section 570.601); 4. Section 3 of the Housing and Urban Development Act of 1968, as amended and implementing regulations at 24 CFR Part 135; 5. Executive Order 11246, as amended by Executive Orders 11375 and 12086 and implementing regulations issued at 41 CFR Chapter 60; 6. Executive Order 11063, as amended by Executive Order 12259 and implementing regulations at 24 CFR Part 107; 7. Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93 -112), as amended and implementing regulations when published for effect; 8. The Age Discrimination Act of 1975, as amended, (Pub.L. 94 -135) and implementing regulations when published for effect; 9. The relocation requirements of Title II and the acquisition requirements of Title III of the Uniform Relocation Assistance and Real Property Acquisition Revised August 9, 1991 31 Policies Act of 1970, and the implementing regulations at 24 CFR Part 42; 10. The labor standards requirements as set forth in 24 CFR 5570.605 and HUD regulations issued to implement such requirements; 11. Executive Order 11988 relating to the evaluation of flood hazards and Executive Order 11288 relating to the prevention, control, and abatement of water pollution; 12. The flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973, (Pub. L. 93 -234). 13. The regulations, policies, guidelines and requirements of OMB Circular Nos. A -102, Revised, A -87, A -110 and A- 122 as they relate to the acceptance and use of Federal funds under this federally- assisted Program. B. No member, officer, or employee of the CONTRACTOR, or its designees or agents; no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercises any functions or responsibilities with respect to the Program during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the Program and all such contracts or subcontracts shall contain a provision prohibiting such interest; C. It will comply with the provisions of the Hatch Act which limit the political activity of employees; D. It will give HUD and the Comptroller General or any authorized representatives access to and the right to examine all records, books, papers, or documents related to the grant; E. It will comply with the lead -based paint requirements of 24 CFR Part 35 Subpart B issued pursuant to the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. 4801 et seq). CSO13:A: \CONTRACT \CDBGAGRE.91 Revised August 9, 1991 32 COMMUNITY GRANT AGREEMENT BY AND BETWEEN J THE TOWN LOS GATOS AND THIS AGREEMENT, entered into this day of , 1991, by and between the TOWN OF LOS GATOS, a municipal corporation (hereinafter TOWN), and a nonprofit corporation (hereinafter CONTRAC- TOR). WITNESSETH WHEREAS, TOWN appropriated funds in its Fiscal Year 1991 -92 Budget for allocation to community service agencies, and; WHEREAS, TOWN desires to engage CONTRACTOR, and TOWN has appropriated funds not to exceed ($ ), to be utilized during the time period between July 1, 1991, and June 30, 1992, for the purpose of meeting the goals and objectives outlined in EXHIBIT B, "SCOPE OF SERVICES" (hereinafter PROGRAM), operating within the TOWN OF LOS GATOS from facilities located at and benefitting WHEREAS, CONTRACTOR represents and warrants the truth of all statements continued in "ASSURANCES" attached as EXHIBIT A and incorporated herein by reference. NOW, THEREFORE, THE PARTIES AGREE, as follows: I. PROGRAM COORDINATION A. TOWN: The Director of Community Services or his/her designee, shall be the PROGRAM MANAGER for TOWN and shall render overall supervision of the progress and performance of this Agreement by TOWN. All services agreed to be performed by TOWN shall be under the overall direction of the PROGRAM MANAGER. B. CONTRACTOR: CONTRACTOR shall assign a single PROGRAM DIRECTOR who shall have overall responsibility for the progress and execution of this Agreement. Should circumstances or conditions subsequent to the execution of this Agreement require a substitute PROGRAM DIRECTOR, CONTRACTOR shall notify TOWN immediately of such occurrence. PROGRAM DIRECTOR and CONTRACTOR staff will fully Revised August 9, 1991 cooperate with TOWN'S PROGRAM MANAGER relating to the PROGRAM, areas ,of concern, and the impact of PROGRAM on residents of TOWN. C. NOTICES: All notices or other correspondence required or con- templated by this Agreement shall be sent to the parties at the following addresses: TOWN: Regina A Falkner, Director Community Services Department name title Town of Los Gatos P.O. Box 949 Los Gatos CA 95031 address city zip CONTRACTOR: name title address city zip II. OBLIGATION OF CONTRACTOR A. Organization of CONTRACTOR 1. Within 15 days of execution of this Agreement, CONTRACTOR shall deliver the following to the PROGRAM MANAGER a. The Articles of Incorporation under the laws of the State of California. b. Current Bylaws. C. Verification and documentation of Internal Revenue Service nonprofit status under Title 26, Section 501(c) of the Federal Code. d. Names and addresses of current Board of Directors. e. Personnel policies and procedures including Affirmative Action Plan if staff exceeds fifteen (15) employees. f. An organizational chart and staffing profile. Contractor shall report in writing any changes within five days of the effective date. 2. No member of the Board of Directors or the Director's family may be a paid employee, agent or subcontractor of CONTRACTOR. 3. CONTRACTOR'S Board of Directors shall include representation from the broadest possible cross section of the community including: those with expertise and interest in the CONTRAC- TOR's services, representatives from community organizations interested in the CONTRACTOR's services, and users of the CONTRACTOR's services. 2 9.0..d August 9, 1991 4. Meetings of CONTRACTOR'S Board of Directors, except meetings, or portions thereof, dealing with personnel or litigation matters, shall be open to the public. 5. CONTRACTOR shall keep minutes, approved by the Board of Directors, of all regular special meetings. 6. CONTRACTOR shall encourage public participation in planning and implementing services under this Agreement. B. Program Performance of CONTRACTOR Contractor shall: 1. Provide services in accordance with the "SCOPE OF SERVICES" (attached as EXHIBIT B), and "ANNUAL BUDGET" (attached as EXHIBIT C). 2. File reports (on forms approved by TOWN) with the TOWN on the type and number of services rendered to beneficiaries through the operation of the PROGRAM. Such reports shall evaluate the manner in which the program is achieving its objectives and goals according to standards established by TOWN. The reports shall be due within ten (10) calendar days of the end of the last reporting period and shall cover the period immediately preceding. 3. Coordinate its services with existing organizations providing similar service in order to foster community cooperation and to avoid unnecessary duplication of services. 4. Seek out and apply for other sources of revenue in support of its operation or services from county, state, federal and private sources and, in the event of such award, inform TOWN within fifteen (15) calendar days. 5. Include an acknowledgment of TOWN funding and support on all appropriate publicity and publications using words to the effect that "Services are provided with funds from the TOWN OF LOS GATOS ". C. Fiscal Responsibilities of CONTRACTOR CONTRACTOR shall: 1. Appoint and submit the name of a fiscal agent who shall be responsible for the financial and accounting activities of the Revised August 9, 1991 3 CONTRACTOR, including the receipt and disbursement of CONTRACTOR funds. 2. Appoint from its Board a Treasurer who, no less than monthly, shall review and by signature approve all receipts, disburse- ments. and bank account balances. 3. Establish and maintain a system of accounts that shall be in conformance with generally accepted principles of accounting for budgeted funds. Such system of accounts shall be subject to review and approval of TOWN. 4. Document all costs by maintaining complete and accurate records of all financial transactions, including, but not limited to, contracts, invoices, time cards, cash receipts, vouchers, cancelled checks, bank statements and /or other official documentation evidencing in proper detail the nature and propriety of all charges. 5. Perform an independent fiscal audit at least every year, in conformance with the generally accepted standard accounting principles. Such audits must identify the total funds received and disbursed as well as funds granted and expended relating to this Agreement. Copies of the completed audits must be provided to the TOWN, within 90 days of the termination of this Agreement. 6. Repay any disallowed costs. Disallowed costs maybe identified through audits, monitoring, or other sources. CONTRACTOR shall be afforded the opportunity to respond to any adverse findings which may lead to disallowed costs. The TOWN shall make the final determination of disallowed costs, subject to provisions of OMB circular A -122, Cost Principles for Nonprofit Organizations. 7. Submit to the TOWN (on the approved form) CONTRACTOR's request for reimbursement and supporting documentation on a quarterly basis according to EXHIBIT C, "BUDGET ", attached (see Section IV, B, 1. hereinbelow). TOWN shall make final determination of validity of costs included in request for reimbursement, and shall have the right Revised August 9, 1991 4 to reject and deduct from the amount requested for reimburse- ment any costs the TOWN determines are not valid. 8. Submit for approval by TOWN any Lease Agreement either contemplated or in effect. 9. CONTRACTOR shall, at its sole cost and expense, obtain and maintain in full force and effect throughout the term of this Agreement, insurance as set forth in EXHIBIT D. D. Preservation of Records: CONTRACTOR shall preserve and make available its records: 1. Until the expiration of three years from the date of the submission of the final expenditure report or, for grants that are renewed annually, from the date of the submission of the annual financial status report. 2. For such longer period, if any, as is required by applicable law; or 3. If this Agreement is completely or partially terminated, the records relating to the work terminated shall be preserved and made available for a period of three years from the date of any resulting final settlement. E. Examination of Records: Facilities: At any time during normal business hours and as often as may be deemed necessary, CONTRACTOR agrees that TOWN, and /or any duly authorized representatives shall, until expiration of (a) three years after final payment under this Agreement, or (b) such longer period as may be prescribed, have access to and the right to examine its plants, offices and facilities engaged in performance of this Agreement and all its records with respect to all matters covered by this Agreement, excepting those falling within the attorney - client privilege, and those falling within the attorney work - product privilege, provided that in the event of a dispute regarding the applicability of the attorney work - product privilege to specific records, the parties agree to submit the dispute to an impartial arbitrator agreeable to both parties. Agreement to the arbitrator shall not be withheld unreasonably. Costs of such arbitration shall be divided equally between the parties. Revised August 9, 1991 5 CONTRACTOR also agrees that the TOWN, or any duly authorized representatives, have the right to audit, examine and make excerpts or transcripts of and from, such records, and to make audits of all contracts and subcontracts, invoices, payrolls, records of personnel, conditions of employment, materials and all other data relating to matters covered by this Agreement. F. Town Audits: The TOWN may require an independent audit. Such audits may cover program compliance as well as fiscal matters. CONTRACTOR will be notified in advance that an audit will be conducted. CONTRACTOR will be afforded an opportunity to respond to any audit findings, and have the responses included in the final audit report. Cost of such audits will be borne by the TOWN. G. Purchasing 1. Title to Personal property: Title to any personal property used in performance of the services and work specified in this Agreement shall be as follows: a. Personal property donated shall become the property of CONTRACTOR or person specified by the donor; otherwise the same shall become property of TOWN except for property and equipment described in subparagraph (b) hereof. b. Personal property and equipment permanently affixed to buildings owned by CONTRACTOR shall become property of CONTRACTOR. C. All other personal property, supplies and equipment purchased pursuant to this Agreement and not consumed shall become property of TOWN and shall revert to TOWN at end of contractual arrangement with the TOWN. 2. Non - expendable Property: Non - expendable property purchased by CONTRACTOR with funds approved by TOWN, with a purchase price in excess of One Hundred Dollars ($100.00), must be approved in writing by TOWN. TOWN shall retain title to said property. If PROGRAM will be continued beyond termination of this Agreement, TOWN, at its option, may return title to CONTRACTOR. Revised August 9, 1991 6 3. Purchase of Real Property: None of the funds provided under this Agreement shall be used for the purchase of real or non - expendable property with a purchase price in excess of One Thousand Dollars ($1,000.00), or for the purchase of an option on the purchase of real or non - expendable property, unless the TOWN'S PROGRAM MANAGER approves, in writing, such purchase or option to purchase prior to the time when CONTRACTOR enters into a contract for such purchase or option to purchase. Any such purchase or option shall be processed through the Town Manager's Office. III. MONITORING AND EVALUATION OF SERVICES A. Evaluation of Program Performance Evaluation of the PROGRAM performance shall be the mutual respon- sibility of both CONTRACTOR and TOWN. CONTRACTOR shall furnish all data, statements, records, information and reports necessary for PROGRAM MANAGER to monitor, review and evaluate performance of CONTRACTOR with respect to the PROGRAM and its components. The results of CONTRACTOR's performance will be recorded on a standard monitoring and evaluation form. TOWN shall have the right to request the services of an outside agent to assist in any such evaluation. Such services shall be paid for by TOWN. B. Unsatisfactory Performance CONTRACTOR shall be considered to be performing in an unsatisfactory manner if shown to be providing client services below an established minimum level as stated in EXHIBIT B, "SCOPE OF SERVICES ". Should the PROGRAM fail to meet any one of the performance standards established in the SCOPE OR SERVICES, such occurrence will be addressed by TOWN staff and reviewed by the PROGRAM MANAGER. Programs coming under review of the type described herein will be notified and shall have the opportunity to provide any relevant information to the PROGRAM MANAGER prior to any action taken by the TOWN. C. With receipt by TOWN of any information that evidences a failure or deficiency by CONTRACTOR to comply with any provision of this Agreement, the TOWN shall have the right to require corrective action Revised August 9, 1991 7 0 to enforce compliance with such provision. Corrective action shall be taken if any of the following, as examples only, occur: 1. If CONTRACTOR (with or without knowledge) has made any material misrepresentation of any nature with respect to any information or data furnished to TOWN in connection with the PROGRAM. 2. If there is pending litigation with respect to the performance by CONTRACTOR of any of its duties or obligations under this Agreement which may materially jeopardize or adversely effect the undertaking of or the carrying out of the PROGRAM. 3. If CONTRACTOR shall have taken any action pertaining to the PROGRAM which requires TOWN approval without having obtained such approval. 4. If CONTRACTOR is in default under the provisions of this Agreement. 5. If CONTRACTOR makes improper use of grant funds. 6. If CONTRACTOR fails to comply with any, of the terms and conditions of this contract in such a manner as to constitute material breach thereof. 7. If CONTRACTOR submits to TOWN any reports which are incorrect or incomplete in any material respect. Corrective Action After all administrative remedies have been exhausted, TOWN shall have the right to require the presence of any of CONTRACTOR or its representative at any hearing or meeting called for the purpose of considering corrective action within seven (7) working days of receiving such notice. CONTRACTOR will have an opportunity to participate fully in corrective action deliberations. TOWN shall forward to CONTRACTOR a set of specific corrective action recommendations relative to unsatisfactory PROGRAM performance and /or non - compliance and a timetable for implementing the specified corrective action recommendations; such timetable shall allow CONTRACTOR not less than seven (7) working days nor more than seven (1) working days from time notice was received to comply with the specified corrective action recommendations. Following implementa- 8 Revised August 9, 1991 tion of the corrective actions, CONTRACTOR shall forward to TOWN, within ten (10) working days any documentary evidence required by TOWN to verify that the corrective actions have been taken. In the event CONTRACTOR does not implement the corrective action recommenda- tions in accordance with the corrective action timetable, TOWN may suspend payments hereunder and /or provide notice of intent to terminate this contract. IV. OBLIGATIONS OF TOWN A. Contract Compliance: TOWN staff shall provide assistance to CONTRACTOR in connection with: 1. Obtaining conformity of the PROGRAM with the TOWN's policies and procedures and all TOWN codes, ordinances, directives and laws. 2. Review of contract for compliance purposes and evaluating PROGRAM based on quarterly reports received from CONTRACTOR and on -site monitoring of client -based data. B. Method of Payment: 1. TOWN shall reimburse CONTRACTOR for all allowable costs and expenses incurred in providing the PROGRAM upon receipt of properly executed invoice and supporting data according to EXHIBIT C, "BUDGET ", and EXHIBIT E, "PAYMENTS TO CONTRACTOR ", attached. Invoice must be accompanied by corresponding monthly or quarterly report. TOWN may, at any time and in its absolute discretion, elect to suspend or terminate payment to CONTRACTOR, in whole or in part, under this Agreement or not to make any particular payment under this Agreement in the event of unsatisfactory performance or non - compliance with this Agreement. V. PROGRAM INCOME If disposition instructions from TOWN require sale of property, CONTRACTOR must compensate TOWN the amount computed by applying TOWN's percent of participation in the cost of the PROGRAM to the proceeds from sale after deducting actual and reasonable selling and fix -up expenses, if any, from the sale proceeds. If CONTRACTOR is directed to transfer title of property to TOWN, CONTRACTOR Revised August 9, 1991 9 shall be entitled to compensation computed by applying the TOWN's percentage of participation in the cost of the PROGRAM to the current fair market value of the property. All other PROGRAM income earned during the grant period shall be retained by the CONTRACTOR and shall be added to funds committed to PROGRAM by the TOWN and used to further eligible PROGRAM activities and to finance, upon TOWN's approval, the non - federal share of PROGRAM or, deducted from the total project costs for the purpose of determining the net costs on which the TOWN's share of costs will be based. VI. REPROGRAMMING OF FUNDS TOWN may reprogram the amount of underspending in the PROGRAM as a whole, to another project. TOWN shall, before reprogramming, give CONTRACTOR ten (10) working days written notice of its intention to reprogram funds, together with a copy of TOWN's expenditure review for the PROGRAM and statements of its reasons for such reprogramming. TOWN shall make its final determination with respect to reprogramming only after CONTRACTOR has been given an opportunity to present its views and recommendations with respect to such contemplated reprogramming. In no event, however, shall TOWN be bound to accept CONTRACTOR's views or recommendations with respect to such contemplated reprogramming. VII. DISCLOSURE OF CONFIDENTIAL CLIENT INFORMATION TOWN and CONTRACTOR agree to maintain the confidentiality of any information regarding applicants for services offered by the PROGRAM pursuant to this Agreement or their immediate families which may be obtained through application forms, interviews, tests, reports, from public agencies or counselors, or any other source. Without the written permission of the applicant, such information shall be divulged only as necessary for purposes related to the performance or evaluation of the services and work to be provided pursuant to this Agreement, and then to persons having responsibilities under the contract, including those furnishing services under the PROGRAM through subcontracts. VIII. ASSIGNABILITY AND INDEPENDENT CONTRACTOR REQUIREMENTS A. The relationship of CONTRACTOR to TOWN is that of an independent contractor. CONTRACTOR has full rights to manage its employees subject to the requirements of the law. All persons employed by 10 Revised August 9, 1991 CONTRACTOR in connection with this Agreement shall be employees of CONTRACTOR and not employees of TOWN in any respect. CONTRACTOR shall be responsible for all employee benefits, including, but not limited to, statutory worker's compensation benefits. B. None of the work or services to be performed hereunder shall be delegated or subcontracted to third parties without prior written TOWN approval. C. No subcontractor of CONTRACTOR will be recognized by TOWN as such. All subcontractors are deemed to be employees of CONTRACTOR, and CONTRACTOR agrees to be responsible for their performance and any liabilities attaching to their actions or omissions. IX. COMPLIANCE WITH LAW CONTRACTOR shall become familiar and comply with and cause all its subcontractors and employees, if any, to become familiar and comply with all applicable federal, state and local laws, ordinances, codes, regulations and decrees including, but not limited to, those federal rules and regulations outlined in EXHIBIT A, "ASSURANCES ". Failure of CONTRACTOR to, in any manner, observe and adhere to law as described herein or as amended shall in no way relieve CONTRACTOR of its responsibility to adhere to same and CONTRACTOR herein acknowledges this responsibility. CONTRACTOR shall hold TOWN, its Town Council, officers, employees and boards and commissions harmless from CONTRACTOR's failure(s) to comply with any requirement imposed on PROJECT by virtue of the utilization of Federal funds. CONTRACTOR shall reimburse TOWN, for any disallowed costs and /or penalties imposed on TOWN because of CONTRACTOR's failure to comply with Federal requirements. X. TERMS AND AMENDMENTS Amendments to the terms and conditions of this contract shall be requested in writing by the party desiring such revision, and any such adjustment to this contract shall be determined and effective only upon the mutual Agreement in writing of the parties hereto unless the Amendments are made by the TOWN in which case they will be adopted as ordered. XI. LEGAL MATTERS A. Integration This document represents the entire and integrated Agreement between Revised August 9, 1991 11 the TOWN and the CONTRACTOR, and supersedes all prior negotiations, representations, agreements, either written or oral. B. Binding Effect The terms of this Agreement shall bind, and insure to the benefit of, the parties, their heirs, successors, and assigns. XII. HOLD HARMLESS CONTRACTOR hereby releases and agrees to protect, defend hold harmless, and indemnify TOWN, its Town Council, its officers, employees and elected officials, boards and commissions, from and against all claims, injury, liability, loss, costs and expense, or damage, however same may be caused, including all cost and reasonable attorney's fees in providing the defense to any claim arising therefrom, for any loss or damage to property (real and /or personal) and for personal injury to or death of any person or persons arising out of, occurring by reason of, or in any way connected with CONTRACTOR's PROJECT activities, or in consequence thereof. XIII. WHEN RIGHTS AND REMEDIES WAIVED In no event shall any payment by TOWN or any acceptance of payment by CONTRACTOR hereunder constitute or be construed to be a waiver by TOWN or CONTRACTOR of any breach of covenants or conditions of this Agreement or any default which may then exist on the part of TOWN or CONTRACTOR, and the making of any such payment while any such breach or default shall exist shall in no way impair or prejudice any right or remedy available to TOWN or CONTRACTOR with respect to such breach or default. XIV. TERMINATION A. Termination for Cause Unearned payments under this Agreement may be suspended or terminated at any time before the date of completion by TOWN if: 1. CONTRACTOR fails to comply with conditions of the Agreement. 2. CONTRACTOR refuses to accept any additional conditions that may be imposed by the TOWN. B. Termination for Convenience TOWN or CONTRACTOR may terminate this Agreement in whole or in part when both parties agree that the continuation of the PROJECT would not produce beneficial results commensurate with the further expenditure of funds. The two parties shall agree upon the 12 Revised August 9, 1991 termination conditions, including the effective data and, in the case of partial terminations, the portion to be terminated. C. Upon Suspension or Termination CONTRACTOR Shall: 1. Not incur new obligations and shall cancel as many outstanding obligations as possible. 2. Be paid only for services actually rendered to TOWN to the date of such suspension or termination; provided, however, if this Agreement is suspended or terminated for fault of CONTRACTOR, TOWN shall be obligated to compensate CONTRACTOR only for that portion of CONTRACTOR's services which are of benefit to TOWN. 3. Turn over to TOWN immediately any and all copies of studies, reports and other data, prepared by CONTRACTOR or its subcontractors, whether or not completed, if any, in connection with this Agreement; such materials shall become property of TOWN. CONTRACTOR, however, shall not be liable for TOWN's use of incomplete materials or for TOWN's use of complete documents if used for other than the services contemplated by this Agreement. XV. CHANGES This Agreement shall not be assigned or transferred without the written consent of the TOWN. No changes or variations of any kind are authorized without the written consent of the Town Manager. TOWN is not liable for any CONTRACTOR expenses incurred after closing date of contract. XVI. MISCELLANEOUS PROVISIONS A. The Caption The captions of the various sections, paragraphs, and subparagraphs of the contract are for convenience only and shall not be considered nor referred to for resolving questions of the interpretation. B. No Third Party Beneficiary This Agreement shall not be construed or deemed to be an Agreement for the benefit of any third party or parties, and no third party shall have any claim or right of action hereunder for any cause whatsoever. Revised August 9, 1991 13 C. Severabilitv Clause In case any one or more of the provisions contained herein shall, for any reason, be held invalid, illegal, or unenforceable in any respect, it shall not affect the validity of the other provisions which shall remain in full force and effect. D. No Pledging of TOWN's Credit Under no circumstances shall CONTRACTOR have the authority or power to pledge the credit of TOWN, or incur any obligation in the name of TOWN. CONTRACTOR shall save and hold harmless TOWN, its Town Council, its officers, employees and boards and commissions from expenses arising out of this Agreement. E. Disputes In any dispute over any aspect of this Agreement, the prevailing party shall be entitled to reasonable attorney's fee, as well as all reasonable costs (not limited to those allowed by statute). F. Non - discrimination Neither the CONTRACTOR nor any of its subcontractors shall discriminate unlawfully in the employment of persons under this Agreement because of their ace, color, national origin, sex, age, ancestry, religion, handicap or marital status. Revised August 9, 1991 14 IN WITNESS WHEREOF, the parties have executed this Agreement in duplicate the day and year above written. APPROVED AS TO FORM: Katherine Anderton Town Attorney ATTEST: Marian V. Cosgrove, Town Clerk APPROVED AS TO CONTENT: Regina A. Falkner, Director Community Services Department CSD13:A: \contract \co"rent.agr Is Revised August 9, 1991 TOWN OF LOS GATOS David W. Knapp Town Manager CONTRACTOR: By: Executive Director EXHIBIT A. ASSURANCES The CONTRACTOR assures and certifies to the TOWN that: 1. It possesses legal authority to apply for the grant; that a resolution, motion or similar action has been duly adopted or passed as an official act of the CONTRACTOR'S governing body, authorizing the filing of the application, including all understandings and assurances contained herein, and directing and authorizing the person identified as the official representative of the CONTRACTOR to act in connection with the application and to provide such additional information as may be required. 2. It will comply with Title VI. of the Civil Rights Act of 1964 (42 USG 20001a]) prohibiting employment discrimination where (1) the primary purpose of a grant is to provide employment or (2) discriminatory employment practices will result in unequal treatment of persons who are or should be benefitting from the grant aided activity. 3. Not excluded from participation in, deny the benefits of, or subject to discrimination under any PROGRAM or activity, any person in the United States on the grounds of race, color, national origin, sex, age, religion or handicap status in accordance with the Age Discrimination Act of 1975, Section 504 of the Rehabilitation Act of 1973, Civil Rights Act of 1964 or Title VII. of t' - Act of 1968. 4. It will comply wig. he provisions of the Hatch Political Activity Act 5 USC 1501 et seq. which limit the political activity of employees. 5. It will establish safeguards to prohibit employees of CONTRACTOR or Federal, State or Local Governments from using their positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, bu's'iness, or other ties. 6. Comply with the applicable provisions of the Political Reform Act of 1974 relating to conflicts of interest (codified in California Government Code Section 87100, at seq.) and promptly advise TOWN of the facts and circumstances concerning any disclosure made to it or any information obtained by it relating to conflicts of interest. 7. It will comply with Section 504 of the Rehabilitation Act of 1973, as amended (29 USC 794). CSW4!A: \contrsct \EXHIBITS, ADE Revised August 9. 1991 EXHIBIT B SCOPE OF SERVICES FISCAL YEAR 1991 -92 AGENCY: PROGRAM GOALS AND OBJECTIVES: Community Grant Revised August 9. 1991 Page I of 2 CSDOA:A: \FORMS \SCORESER.E %B EXHIBIT B SCOPE OF SERVICES FISCAL YEAR 1991 -92 II. CLIENTS A. Total number of unduplicated Los Gatos residents to participate in program: III. DIRECT SERVICES TO BE PROVIDED TO LOS GATOS RESIDENTS: Quarterly Services Goals 1st 2nd 3rd 4th Annual Totals A. go C. a E. IV. INDIRECT SERVICES TO BE PROVIDDED TO LOS GATOS RESIDENTS A. a G' I I I I I Community Grant — Revised Augmt 9, 1991 Page 2 of 2 CSDOA:A: \FORMS \SCOPESER.E %B EXHIBIT C. BUDGET 1. PROGRAM BUDGET TOTAL ALLOCATION ORGANIZATION OF FUNDS ACTUAL PROGRAM BUDGET (IN DOLLARS) 1990 -91 1991 -92 1991 -92 SOURCE INCOME TOWN OF LOS GATOS OTHER CITIES STATE FEDERAL OTHER MUNICIPALITIES FEES FOR SERVICES FUND RAISING, DONATIONS (CASH) RESERVE CONTINGENCY FUND ALL OTHER (LIST) -------------------- TOTAL INCOME NOTE: ALL AMOUNTS SHOULD BE ROUNDED TO THE NEAREST DOLLAR Page 1 of 2 Revised August 9, 1991 CS003:A: \F0RMS \CO GFANI.0 EXHIBIT C. BUDGET 1. ALLOCATION PROGRAM BUDGET TOTAL OF FUNDING ACTUAL PROGRAM BUDGET (IN DOLLARS) 1990 -91 1991 -92 1991 -92 EXPENSES CAPITAL EXPENSES PERSONNEL SUPPLIES COMMUNICATIONS PRINTING /ADVERTISING I UTILITIES SPACE RENTAL EQUIP. RENTAL TRAVEL (LOCAL) TRAVEL (OTHER) CONTRACTUAL SERVICES FRINGE INSURANCE MISCELLANEOUS EQUIPMENT SUBTOTAL EXPENSES CAPITAL OUTLAY BUILDINGS" EQUIPMENT SUBTOTAL EXPENSES TOTAL EXPENSES AND CAPITAL OUTLAY NOTE Revised August 9, 1991 ALL AMOUNTS SHOULD BE ROUNDED TO THE NEAREST DOLLAK Page 2 of 2 CS004:s: \F0RMS`_D RANT.0 EXHIBIT D. INSURANCE REQUIREMENTS FOR CONTRACTORS Contractor shall procure and maintain for the duration of the contract, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors. The cost of such insurance shall be borne by the Contractor. A. MINIMUM SCOPE OF INSURANCE Coverage shall be at least as broad as: 1. Insurance services Office form number GL 0002 (Ed. 1/73) covering Comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage ( "occurrence" form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed 1/78) covering Automobile Liability, code 1 "any auto" and endorsement CA 0025. 3. Workers' Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance. B. MINIMUM LIMITS OF INSURANCE Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project /location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobil'e'Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. 3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. Revised August 9, 1991 - I C U .,,-DUCTIB FC AND SELF - INSURED RETENTIONS Any deductibles or self- insured retentions must be declared to and approved by the Town. At the option of the Town, either: the insurer shall reduce or eliminate such deductibles or self- insured retentions as respects the Town its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. OTHER INSURANCE PROVISIONS The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages a. The Town, its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor, products and completed operations of the Contractor, premises owned, occupied or used by the Contractor, or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the Town, its officers, officials, employees or volunteers. b. The Contractor's insurance coverage shall be primary insurance as respects the Town, its officers, officials, employees and volunteers. Any insurance or self- insurance maintained by the Town, its officers, officials, employees or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. C. Any failure to comply with reporting provisions of the policies sha'I'1 not affect coverage provided to the Town, its officers, officials, employees or volunteers. d. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. Revised August 9. 1991 2. Workers' Compensation and Employers Liability coverage The insurer shall agree to waive all rights of subrogation against the Agency, its officers, officials, employees and volunteers for losses arising from work performed by the contractor for the Town. 3. All Coverages Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty (30 days' prior written notice by certified mail, return receipt requested, has been given to the Town. E. ACCEPTABILITY OF INSURERS Insurance is to be placed with insurers with a Best's rating of no less than A:VII. F. VERIFICATION OF COVERAGE Upon execution of this agreement, Contractor shall furnish the Town with certificates of insurance and with original endorsements effecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms provided by the Town. Where by statute, the Town's workers' compensation - related forms cannot be used, equivalent forms approved by the Insurance Commissioner are to be substituted. All certificates and endorsements are to be received and approved by the Town before work commences. The Town reserves the right to require complete, certified copies of all required insurance policies, at any time. G. SUBCONTRACTORS Contractor shall include all subcontractors as insureds under its policies or shall furni'sh separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. Rev�zetl August 9. 1991 CSD04:A: \CONTRACT \EXH1S1TS.ADE EXHIBIT E. PA PAYMENTS TO CONTRACTOR 1.01 PAYMENTS TO CONTRACTOR. TOWN agrees to pay CONTRACTOR for the performance of the services, work, and duties, subject to and performed in connection with this Agreement a sum of money not to exceed the amount set forth in EXHIBIT C, "BUDGET ". Such sum shall be expended and paid by TOWN to CONTRACTOR during the term of this Agreement on a reimbursement basis for services actually performed by CONTRACTOR and for eligible costs actually incurred by and paid by CONTRACTOR pursuant to this Agreement, for the cost categories appearing in this section, upon receipt by TOWN of a statement or statements in a form approved by TOWN and specifying in detail the services performed by and the costs incurred by and paid by CONTRACTOR during the quarter for which payment is requested. In no event shall CONTRACTOR overrun the total budget for any quarter without securing prior written approval from the TOWN. Payment to CONTRACTOR shall be made according to the schedule below upon receipt by TOWN of Performance Report described in Section II B.2. and Budget Report described in Section II C.7. and all such required statements and supporting documents, including but not limited to, paid invoices, provided that TOWN determines that the items on such statements and supporting data for which payment is requested can properly be paid under this Agreement. In making such determination, TOWN may rely upon the certification by CONTRACTOR that the items appearing on said statement and supporting data are eligible items for payment under this PROGRAM and Agreement, and such determination by TOWN shall in no way constitute a waiver by TOWN of its right to recover from CONTRACTOR the amount of any money paid to CONTRACTOR on any item which is not eligible for payment under the PROGRAM andl';this Agreement. QUARTERLY STATEMENT AND PERFORMANCE REPORT DUE PAYMENT DATE First Quarter (July -Sept) Oct. 15, 1991 Oct. 25, 1991 Second Quarter (Oct -Dec) Jan. 15, 1992 Jan. 31, 1992 Third Quarter (Jan -March April 15, 1992 Apr. 24, 1992 Fourth Quarter (April -June) July 15, 1992 Jul. 31, 1992 The total amount of such payments to be made to CONTRACTOR shall be distributed as shown in EXHIBIT C, "BUDGET ". Revised August 9. 1991 -2- Personnel: Total eligible payments made to CONTRACTOR'S employees for time actually worked for all positions listed in EXHIBIT B, "SCOPE OF SERVICES ". Suvolies: Eligible costs for consumable commodities which have a useful life of one (1) year or less, or which cost less then Five Hundred Dollars ($500) and which render services essential to the operation of the PROGRAM. Communications: Eligible costs for telephone, telegraph, postage, and other communication costs which are essential to the operation of the PROGRAM. Printing and Advertising: Eligible costs for printing and duplicating services; newspaper printing by contract; and newspaper advertising which is essential to the operation of the PROGRAM. Utilities: Eligible costs incurred for water, gas, electric, garbage and trash collection, and similar expenses. Space Rental: Eligible costs for building space used in connection with the PROGRAM, including rent, maintenance and janitorial services when included in the lease, not including fixtures, furniture, equipment or utilities. Equipment Rental: Eligible costs for rental of equipment defined as tangible property other than land and buildings, or building improvements. Travel (Local): Allowable reimbursement to employees for actual automobile mileage transportation, and all necessary and ordinary travel expenses while on official PROGRAM business within the County of Santa Clara. Travel (0'ther): Travel outside of the County of Santa Clara. All out -of -state travel must be approved by TOWN prior to any expenditure for such travel. Allowable reimbursement to employees for actual automobile mileage, transportation, lodging, meals, and all ordinary and necessary travel expenses while on official PROGRAM business, as it may from time -to -time be amended. All conferences, seminars, and similar meetings in which the cost is One Hundred Dollars ($100) or more per person require prior TOWN approval. Revised August 9, 1991 -3- Contractual Services: Eligible payments for contractual expert services of a professional, scientific, or technical nature, as well as eligible payments made to contractors for performing construction work or any other services which the PROGRAM does not have the capability of performing itself. Contracts or subcontracts in excess of One Hundred Dollars ($100) require prior approval by TOWN. Fringe: Eligible payroll related costs of health insurance, retirement fund contributions, FICA, and other payments made on behalf of the employee. Insurance: Eligible costs of insurance and other related services. Miscellaneous: Eligible costs and payments for any item not in other cost categories. Any expenditure in this category for an item costing more than One Hundred Dollars ($100) shall require prior approval of the TOWN. Eauioment: Eligible payments for the purchase of equipment which is defined as tangible property having a useful life of more than one (1) year, the unit cost of which is Five Hundred Dollars ($500) or more. All equipment purchases require prior TOWN approval. "Eligible ", as used in this Agreement, means those costs, payments, and disbursements for activities. 1.102 RECYCLING OF PROGRAM FUNDS. TOWN shall review on a monthly basis the monthly expenditures if any, for services performed and costs incurred by CONTRACTOR provided in this Exhibit. If such review reveals that said expenditures budgeted on a monthly basis in any such month for the PROGRAM as a whole or any cost category thereof, is below the total amount allocated under this Agreement for the total PROGRAM or cost category thereof for such month, TOWN may channel the amount of such underspending, in the case of underspending in a cost category, into another cost category of the PROGRAM or, in the case of underspending in the PROGRAM as a whole, to another project. TOWN shall, before rechanneling, give CONTRACTOR ten (10) days' written notice of its intention to recycle funds, together with a copy of TOWN'S monthly expenditure review for the PROGRAM and statement of its reasons for such recycling. TOWN shall make its final determination with respect to recycling only after CON- TRACTOR has been given an opportunity to present its views and recommendations Revised August 9, 1991 -4- with respect to such contemplated recycling. In no event, however, shall TOWN be bound to accept CONTRACTOR'S views or recommendations with respect to such contemplated recycling. If the expenditures by CONTRACTOR in any month, for the PROGRAM or any cost category thereof, exceed the total amount allocated to the PROGRAM or any cost category thereof by this Agreement, TOWN may terminate non - salary expenditures for the PROGRAM for such period of time as is necessary to bring expenditures into conformance with this Agreement. The MANAGER may at the request of CONTRACTOR approve rechanneling of funds from any cost category or categories to any other cost category or categories at any time provided that: (1) there is no increase in the total amount specified in this Agreement, and (2) the goals and objectives set forth in EXHIBIT B "SCOPE OF SERVICES ", are not negatively affected. Approval by the MANAGER of such rechanneling of funds must be in writing, P.,,,.E August 9, 1991 CSO04:A: \contract \EXH191TS.A E