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COUNCIL AGENDA REPORT
DATE: SEPTEMBER 4, 2013
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
MEETING DATE: 09/16/13
r'
SUBJECT: PPW PROJECT NO. 10 -10 — HIGHWAY 9 / UNIVERSITY AVENUE
INTERSECTION IMPROVEMENT PROJECT 813 -0202
ADOPT RESOLUTION AUTHORIZING THE TOWN MANAGER TO
EXECUTE AN ADMINISTERING AGENCY -STATE MASTER
AGREEMENT AND THE PROGRAM SUPPLEMENT AGREEMENT UNDER
THE MASTER AGREEMENT WITH THE STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
RECOMMENDATION:
1. Adopt resolution (Attachment 1) authorizing the Town Manager to execute an
Administering Agency -State Master Agreement and the Program Supplement Agreement
(Exhibit A) under the Master Agreement (Attachment 2) with the State of California
Department of Transportation.
BACKGROUND:
The State of California Department of Transportation (Caltrans) processes and administers
Federal and State grants to municipalities in California. Prior to the use of grant funding,
Caltrans requires municipalities to execute agreements with the State to ensure compliance with
regulations and standards.
The Town has utilized State and Federal grants in the past such as through the Intermodal
Surface Transportation Efficiency Act (ISTEA), the Regional Surface Transportation Program
(RSTP), the Congestion Mitigation and Air Quality Improvement Program (CMAQ), the
Transportation Enhancement Activities Program (TEA), Safe Routes to School (SR2S), and the
Bridge Replacement and Rehabilitation Program (HBRR).
PREPARED BY: BOB I S
Interim Director of Parks and Public Works
Reviewed by: Assistant Town Manager. Town Attorney finance
PAGE 2
SEPTEMBER 4, 2013
MAYOR AND TOWN COUNCIL
SUBJECT: PPW PROJECT NO. 10 -10 — HIGHWAY 9 / UNIVERSITY AVENUE
INTERSECTION IMPROVEMENT PROJECT 813 -0202
DISCUSSION:
The Highway 9 / University Avenue intersection improvement project will construct
infrastructure enhancements to improve safety issues for vehicles, pedestrians and bicyclists. It
is funded by the Federal Highway Safety Improvement Program (HSIP), which is administered
through Caltrans.
The release of ' State and Federal funds can only take place upon the signing of the Program
Supplement Agreement by an authorized official. The authorized official and the project must be
clearly identified in the Resolution approved by the Town Council, as required by Caltrans.
Funds will be released to municipalities after the official resolution is presented to Caltrans. This
can be done by signing the Master Agreement to apply towards the Program Supplement for the
Highway 9 / University Avenue intersection improvement Federal Project Number HSIPL-
5067(017). A letter from the Department of Transportation includes the program supplement,
special covenants or remarks, and Finance Letter.
CONCLUSION:
Staff recommends that the Town Council adopt a resolution (Attachment 1) authorizing the
Town Manager to execute an Administering Agency -State Master Agreement and the Program
Supplement Agreement (Exhibit A) under the Master Agreement (Attachment 2) with the State
of California Department of Transportation.
ENVIRONMENTAL ASSESSMENT:
Council approval of the attached resolution is not a project defined under CEQA, and no further
action is required.
FISCAL IMPACT:
The Town was awarded $900,000 through the Federal Highway Safety Improvement Program
(HSIP). The required local match is included in the FY 2013/14 CIP.
Attachments:
1. Resolution authorizing the Town Council to adopt a resolution (Attachment 1) authorizing the
Town Manager to execute an Administering Agency -State Master Agreement and the
Program Supplement Agreement (Exhibit A) under the Master Agreement (Attachment 2)
with the State of California Department of Transportation.
2. Master Agreement
PAGE
SEPTEMBER 4, 2013
MAYOR AND TOWN COUNCIL
SUBJECT: PPW PROJECT NO. 10 -10 — HIGHWAY 9 / UNIVERSITY AVENUE
INTERSECTION IMPROVEMENT PROJECT 813 -0202
Distribution:
Jesse Bhullar, Chief, Office of Project Implementation, State of California Department of
Transportation, Division of Local Assistance, P. O. Box 942874, MS #1, Sacramento, CA
94274 -0001
THIS PAGE
INTENTIONALLY
LEFT BLANK
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER
TO EXECUTE A PROGRAM SUPPLEMENT AGREEMENT
UNDER THE MASTER AGREEMENT
WITH THE STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
FOR PPW JOB #10 -10 — HIGHWAY 9 / UNIVERSITY AVENUE INTERSECTION
IMPROVEMENT PROJECT HSIPL- 5067(017)
WHEREAS, the Town of Los Gatos (Town) is eligible to receive Federal and /or State
funding for certain Transportation projects, through the California Department of Transportation;
and
WHEREAS, Master Agreements, Program Supplemental Agreements, Fund Exchange
Agreements, and /or Fund Transfer Agreements need to be executed with the California
Department of Transportation before such funds can be claimed; and
WHEREAS, the Town wishes to delegate authorization to execute this program
supplement agreement (Exhibit A) and any amendment thereto to the Greg Larson, Town
Manager; and
NOW, THEREFORE BE IT RESOLVED that Greg Larson, Town Manager be
authorized to execute all Master Agreements, Program Supplemental Agreements, Fund
Exchange Agreements, Fund Transfer Agreements and any amendment thereto with the
California Department of Transportation.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 16th day of September, 2013, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTACHMENT 1
THIS PAGE
INTENTIONALLY
LEFT BLANK
PROGRAM SUPPLEMENT NO. N010
to
ADMINISTERING AGENCY -STATE AGREEMENT
FOR FEDERAL -AID PROJECTS NO 04 -5067R
Adv Project ID Date: August 13, 2013
0413000307 Location: 04- SCL- 0 -LGTS
Project Number: HSIPL- 5067(017)
E.A. Number: 04- 925868
Locode: 5067
This Program Supplement hereby adopts and incorporates the Administering Agency -State Agreement for Federal Aid
which was entered into between the Administering Agency and the State on 08/28/07 and is subject to all the terms and
conditions thereof. This Program Supplement is executed in accordance with Article I of the aforementioned Master
Agreement under authority of Resolution No. approved by the Administering Agency on
(See copy attached).
The Administering Agency further stipulates that as a condition to the payment by the State of any funds derived from
sources noted below obligated to this PROJECT, the Administering Agency accepts and will comply with the special
covenants or remarks set forth on the following pages.
PROJECT LOCATION:
SR9 /University Avenue Intersection Improvement
TYPE OF WORK: Reconstruct Intersection, Upgrade Signals
LENGTH: 0.0(MILES)
Estimated Cost Federal Funds I Matching Funds
MS30 $900,000.00 I LOCAL I I OTHER
$1,175,000
$275,000.
$0.00
CITY OF LOS GATOS STATE OF CALIFORNIA
Department of Transportation
By By
Chief, Office of Project Implementation
Title Division of Local Assistance
Date
Date
Attest
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:
----2
Accounting Officer / Date 1 f 14 1 $900,000.00
Program Supplement 04- 5067R -N010- ISTEA Page 1 of 3
Exhibit A
UO/ 1014U 1 J
HSIPL- 5067 (017)
SPECIAL COVENANTS OR REMARKS
1. ADMINISTERING AGENCY agrees that it will only proceed with work authorized for
specific phase(s) with an "Authorization to Proceed" and will not proceed with future
phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE
for that phase(s) unless no further State or Federal funds are needed for those future
phase(s).
2. Any State and Federal funds that may have been encumbered for this project are
available for disbursement for limited periods of time. For each fund encumbrance the
limited period is from the start of the fiscal year that the specific fund was appropriated
within the State Budget Act to the applicable fund Reversion Date shown on the State
approved project finance letter. Per Government Code Section 16304, all project funds
not liquidated within these periods will revert unless an executed Cooperative Work
AgreemeInt extending these dates is requested by the ADMINISTERING AGENCY and
approved by the California Department of Finance.
ADMINISTERING AGENCY should ensure that invoices are submitted to the District
Local Assistance Engineer at least 75 days prior to the applicable fund Reversion Date to
avoid the lapse of applicable funds. Pursuant to a directive from the State Controller's
Office and the.Department of Finance; in order for payment to be made, the last date the
District Local Assistance Engineer can forward an invoice for payment to the
Department's Local. Programs Accounting Office for reimbursable work for funds that are
going to revert at the end of a particular fiscal year is May 15th of the particular fiscal
year. Notwithstanding the unliquidated sums of project specific State and Federal funding
remaining and available to fund project work, any invoice for reimbursement involving
applicable funds that is not received by the Department's Local Programs Accounting
Office at least 45 days prior to the.applicable fixed fund Reversion Date will not be paid.
These unexpended funds will be irrevocably reverted by the Department's Division of
Accounting on the applicable fund Reversion Date,
3. The ADMINISTERING AGENCY will advertise, award and administer this project in
accordance with the current published Local Assistance Procedures Manual.
4. Award information shall be submitted by the ADMINISTERING AGENCY to the District
Local Assistance Engineer within 60 days of project contract award and prior to' the
submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract.
Failure to do so will cause a delay in the State processing invoices for the construction
phase. Please refer to Section 15.7 "Award Package" of the Local Assistance
Procedures Manual.
5, ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every
six months commencing after the funds are encumbered for each phase by the execution
of this Project Program Supplement Agreement, or by STATE's approval of an applicable
Finance Letter. STATE reserves the right to suspend future authorizations /obligations for
Federal aid projects, or encumberances for State funded projects, as well as to suspend
invoice payments for any on- going or future project by ADMINISTERING AGENCY if
Program Supplement 04- 5067R -N010- ISTEA Page 2 of 3
HSIPL- 5067(017)
SPECIAL COVENANTS OR REMARKS
. - I -1 - . J
PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six -month
period.
If no costs have been invoiced for a six -month period, ADMINISTERING AGENCY
agrees to submit for each phase a written explanation of the absence of PROJECT
activity along with target billing date and target billing amount.
ADMINISTERING AGENCY agrees to submit the final report documents that collectively
constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT
completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of
Expenditures" within 180 days of PROJECT completion will result in STATE imposing
sanctions upon ADMINISTERING AGENCY in accordance with the current Local
Assistance Procedures Manual.
6. The Administering Agency shall not discriminate on the basis of race, religion, age,
disability, color, national origin, or sex in the award and performance of any Federal -
assisted contract or in the administration of its DBE Program Implementation Agreement.
The Administering Agency shall take all necessary and reasonable steps under 49 CFR
Part 26 to ensure nondiscrimination in the award and administration of Federal- assisted
contracts. The Administering Agency's DBE Implementation Agreement is incorporated
by reference in this Agreement. Implementation of the DBE Implementation Agreement,
including but not limited to timely reporting of DBE commitments and utilization, is a legal
obligation and failure to carry out its terms shall be treated as a violation of this
Agreement. Upon notification to the Administering Agency of its failure to carry out its
DBE Implementation Agreement, the State may impose sanctions as provided for under
49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18
U.S.C. 1001 and /or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et
seq.).
7. As a condition for receiving federal -aid highway funds for the PROJECT, the
Administering Agency certifies that NO members of the elected board, council, or other
key decision makers are on the Federal Government Excluded Parties List System
(EPLS).
Program Supplement 04- 5067R -N010- ISTEA Page 3 of 3
STATE OF CALIFORNIA. DEPARTMENT OF TRANSPORTATION
PROGRAM SUPPLEMENT AND CERTIFICATION FORM
PSCF (REV. 01/2010)
1 of 1
TO:
Claims Audits
3301 "C" Street, Rm 404
Sacramento, CA 95816
FROM:
DEPARTMENT OF TRANSPORTATION
SUBJECT:
ENCUMBRANCE DOCUMENTS
VENDOR/ CONTRACTOR:
Town of Los Gatos
CONTRACT AMOUNT:
$900,000,00
1'
LOCAL ASSISTANCE
TE PREPARED: PROJECT NUMBER:
8/14/2013 0413000307
REQUISITION NUMBER / CONTRACT NUMBER:
RQS -2660- 041400000168
I HEREBY CERTIFY UPON MY OWN PERSONAL KNOWLEDGE THAT BUDGETED FUNDS ARE AVAILABLE FOR THIS
ENCUMBRANCE AND PURPOSE OF THE EXPENDITURE STATED ABOVE.
ADA Notice
For individuals with sensory disabilities, this document is available in alternate formats. For information, call (915) 654 -6410 of TDD (916) -3880 or write
Records and Forms Management, 1120 N. Street, MS -89, Sacramento, CA 95814.
MASTER. AGREEMENT
ADMINISTERING AGENCY -STATE AGREEMENT FOR
STATE - FUNDED PROJECTS
04 City of Los Gatos
District Administering Agency
Agreement 'No, 00340S
This AGREEMENT, is entered into effective this day of , 2011, by and
between the City of Los Gatos, hereinafter referred to as "ADMINISTERING. AGENCY," and the
State of California, acting by and through its Departmeht of Transportation (Caltrans), ,hereinafter
referred to as "STATE ", and together referred to as "PARTIES" or individually as a `PARTY,"
RECITALS:
1. WHEREAS, the Legislature of the State of California has enacted legislation by which certain
State funds are made available for use on local transportation related projects of public entities
qualified to act as recipients of these state funds; and
2. WHEREAS, ADMINISTERING AGENCY has applied to the California Transportation
Commission (CTC) and /or STATE for funding from either the State Transportation Improvement
Program (STIP), or other State- funded programs (herein referred to as STATE FUNDS), as
.defined in the Local Assistance Program Guidelines '(LAPG), for use on local .authorized
transportation related' projects as a local administered project(s), hereinafter referred to as
"PROJECT "; and
3. WHEREAS, said PROJECT will not receive any federal funds; -and
4. WHEREAS, before STATE FUNDS will be made available for PROJECT, ADMINISTERING
AGENCY and STATE are required to enter into an agreement to establish terms and conditions
applicable to the ADMINISTERING AGENCY when receiving STATE FUNDS for a designated
PROJECT facility and to the subsequent operation and maintenance of that completed facility.
NOW., THEREFORE, the PARTIES agree as follows:
Page 1 of 16 ATTACHAI;ENT 2
,ARTME 1 - PROJECT ADMINISTRATION'
I, This AGREEMENT shall have no force or effect with respect to any program project unless and
until a project- specific Program Supplement to this AGREEMENT for state funded projects,
hereinafter referred to as "PROGRAM SUPPLEMENT ", has been fully e.xecuted� by both STATE
and ADMINISTERING AGENCY.
2. The State approved project - specific allocation letter designate the party responsible for
implementing PROJECT, type of work, and location of PROJECT,
3, The PROGRAM SUPPLEMENT sets out special covenants as a condition for the
ADMINISTERING AGENCY to receive STATE FUNDS from /throu.gh STATE for designated
PROJECT, The PROGRAM SUPPLEMENT shall also ,show these STATE FUNDS that have
been initially encumbered for PROJECT along with the snatching funds to be, provided by
ADMINISTERING AGENCY and /or others. Execution of PROGRAM SUPPLEMENT by the
PARTIES shall cause ADMINISTERING AGENCY to. ad'opt all of the terms of this AGREEMENT
as though fully set forth therein in the PROGRAM SU- PPLEMENT. Unless otherwise expressly
delegated. in a resolution by the governing: body of ADMINISTERING AGEN-CY,, and with written
concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by the
governing body of ADMINISTERING AGENCY.
4. ADMIN'ISTERI'NG AGENCY agrees to execute and return each project- specific PROGRAM
SUPPLEMENT within ninety (90) days of receipt. The PARTIES agree that STATE may suspend
future allocations, encumbrances-'and invoice payments. for any, on- going or future STATE
FUNDED PROJECT performed by.ADMiNISTERING AGENCY if any project-specific PROGRAM
SUPPLEMENT is not returned within that ninety (90) day period unless otherwise agreed. by
STATE in writing.
5. ADMINISTERING AGENCY further agrees, as a condition to the release and. payment of
STATE FUNDS encumbered for the PROJ.E.CT described in each PROGRAM SUPPLEMENT, to
comply with the terms and conditions of this AGREEMENT and all of the agreed -upon Special
Covenants or Remarks incorporated within. the PROGRAM SUP'PLEM:ENT, and
Cooperative /Contribution Agreement where appropriate, defining and identifying the nature of the
specific PROJECT,
6. STATE FUNDS will not participate in. any portion of PROJ :ECT work .performed in advance of
the effective date of the executed PROGRAM SUPPLEMENT for said PROJECT.
7, Projects allocated with STATE FU'N.DS from the STIP will be administered in accordance with
the current CTC STIP' Guidelines, as adopted or amended and i.n accordance with: Chapter 23 of
the Local Assistance Program Guidelines (LAPG) published.by STATE,
8, Projects allocated with STATE FUNDS not programmed in the STIP will be administered in
accordance with the applicable chapter of the LAPG and /or any other instructions published by
STATE,
9. ADMINISTERING AGENCY's eligible costs for preliminary eng- ineering work includes all
preliminary. work directly related to PROJECT up to contract award for construction, including:, but
not limited to, environmental studies and permits (E &P), preliminary surveys and reports,
laboratory work, soil investigations, the preparation of plans, specifications and estimates (PS &E),
advertising for bids, awarding of a contract and project development contract administration.
Page 2 of 16'
10. ADMINISTERING AGENCY'S eligible costs for construction engineering includes actual
inspection and su.pervisio:n of PROJECT construction work; construction staking; laboratory and
field testing; and the preparation and processing of field reports, records, estimates., final reports,
and allowable expenses of employees /consultants engaged in such activities,
11. Unless the PARTIES agree otherwise in writing, ADMINISTERING AGENCY's employees or
its sub - contractor engineering consultant shall be responsible for all .PROJECT engineering work.
12. ADMINISTERING AGENCY shall not proceed with final design of PROJECT until final
environmental approval of PROJECT. Final design entails the design work necessary to complete
the 'PS &E and other work necessary for a construction contract but not required earlier for
environmental clearance of that PROJECT.
13. If PROJECT is not on STATE - owned right -of -way, PROJECT shall be constructed in
accordance with Chapter 11 of the Local Assistance. Procedures Manual (LAPM) that describes
minimum statewide design standards for local agency streets and roads.. The design standards
for projects off the National Highway System (NHS) allow STATE to accept either the STATE's
minimum statewide design standards or the approved geometric design standards of
ADMINISTERING AGENCY. Additionally, for projects off the NHS, 'STATE will accept
ADMINISTERING AGENCY- approved standard specifications, standard plans, materials
sampling and testing quality assurance programs that meet the conditions described in the then
current Local Assistance Procedures Manual.
14, If PROJECT involves work within or partially within STATE -owned right -of -way, that
PROJECT shall also be subject to compliance with the policies, procedures and standards of the
STATE Project Development Procedures Manual and H-ighway Design Manual and where
appropriate, an executed cooperative agreement between STATE and ADMINISTERING
AGENCY that - outlines the PROJECT responsibilities and respective obligations of the .PARTIES,
ADMINISTERING AGENCY and its' contractors shall each - obtain an encroachment permit
through STATE prior to commencing any work within STATE rights of way or work which affects
STATE facilities.
15. When PROJECT is not on the State Highway System (SHS) -but includes work to be
performed by a railroad, the contract for such work shall be prepared by ADMINISTERING
AGENCY or by STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING
AGENCY -shall enter into an agreement with the railroad providing for future maintenance of
protective devices or other facilities ,installed under the contract.
16. The Department of General Services, Division of the State Architect, or its designee, shall
review the contract PS &E for the construction of buildings, structures, sidewalks, curbs and
related facilities for accessibility and usability. ADMINISTERING AGENCY shall not award a
PROJECT construction contract for these types of improvements until the State Architect has
issued written approval stating that the PROJECT plans and specifications comply with the
provisions of sections 4450 and 4454 of the California Government Code, if applicable. Further
requirements and guidance are provided in Title 24 of the California Code of Regulations.
17. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection
of each PROJECT. While consultants may perform supervision and inspection work for
PROJECT with a fully qualified and licensed engineer, ADMINISTERING AGENCY shall provide a
full -time employee to be in responsible charge of each-PROJECT.
Page 3 of 16
18. Unless otherwise provided in the PROGRAM SUPPLEMENT, ADMINISTERING AGENCY
shall advertise, award, a-nd administer the PROJECT construction contract or contracts.
19, The cost of maintenance, security, or protection performed by ADMINISTERING. AGENCY or
contractor forces during any temporary suspension of PROJECT or at any other time may not be
charged to the PROJECT.
20, ADMINISTERING AGENCY shall submit PROJECT- specific award information, using Exhibit
23 -A of the LAPG, to STATE's District Local Assistance Engineer, within sixty (60). days after
contract award, A copy of Exhibit 23 -A shall also be included with the submittal of the first invoice
for a construction contract by ADMINISTERING AGENCY to; Department of Transportation,
Division of Accounting Local Programs Accounting Branch, M'S #33, PO Box 942874,
Sacramento, California. 94274 - 000.1.
21, ADMINISTERING AGENCY shall submit the final report documents that collectively constitute
a "Report of Expenditures." within one hundred. eighty (180) days of PROJECT completion. Failure
by ADMINISTERING AGENCY to submit a "Report of Expenditures" within 180 days of project
completion will, result in STATE imposing sanctions upon ADMINISTERING AGENCY in
accordance Chapters 17 a.nd 19 of the Local Assistance Procedures Manual.
22, ADMINISTERING AGENCY shall comply with the Americans with Disabilities Act (ADA) of
1990 that prohibits discrimination on the basis of disability and all applicable regulations and
guidelines issued pursuant to the ADA.
23, The Governor, and the Legislature of the State of California, each within their respective
jurisdictions, have prescribed certain nondiscrimination requirements with respect to contract and
other work financed with public funds. ADMINISTERING AGENCY agrees to comply with the
requirements of the FAIR EMPLOYMENT PRACTICES ADDENDUM, attached hereto. as Exhibit
A and further agrees that any agreement entered into by ADM.INISTER'ING AGENCY with a third
party for performance of work connected with. PROJECT shall incorporate Exhibit A (with third
party's name replacing ADMINISTERING AGENCY) as parts of such agreement.
24.. ADMINISTERING AGENCY shall include in all subcontracts awarded when applicable, 'a
clause that req.ui`res each subcontractor to comply with California Labor Code requirements that all
workers employed on public works aspects of any :project (as defined in California Labor Code
sections 1720- 1815) be paid not less than the general prevailing wage rates predetermined by
the Department of Industrial Relations as effective at the date of contract award by the
ADMINISTERING AGENCY.
Page 4 of 16
ARTICLE II - RIGHTS OF WAY
1. :No contract for the construction of a STATE FUNDED PROJECT shall be awarded until all
necessary rights of way have been secured, Prior to the advertising for construction of PROJECT,
ADMINISTERING .AGENCY shall certify and, upon request, shall furnish STATE with evidence
that all necessary rights -of -way are available for construction purposes or will be available by the
time of award of the construction contract.
2. The furnishing of rights-of way by ADMINISTERING AGENCY as provided for herein includes,
and is limited to, the following, unless the PROGRAM SUPPLEMENT provides otherwise,
(a) Expenditures to purchase all real p.raperty required for PROJECT free-and clear of liens,
conflicting easements, obstructions and. encumbrances, after crediting PROJECT with the fair
market value of any excess property retained and -not disposed of by ADMINISTERING AGENCY.
(b) The cost of furnishing of right -of -way as provided for herein includes,. in .addition to real
property required for the PROJECT, title free and clear of obstructions and .encumbrances
affecting PROJECT and the payment, as required by applicable law., of damages to owners of
remainder real property not .actually taken but injuriously affected by PROJECT.
(c) The cost of relocation payments and services provided to owners and occupants pursuant to
Government Code sections 7260 -7277 when PROJECT displaces an individual, family, business.,
farm operation or nonprofit organization.
(d) The cost of demolition and /or the sale of all improvements on the right -of -way after credit is
recorded for sale proceeds used to offset PROJECT casts,
(e) The cost of all unavoidable utility relocation, protection or removal.
(f) The cost of all necessary hazardous -material and hazardous waste treatment, encapsulation or
removal and protective storage for which ADMINISTERING AGENCY accepts responsibility and
where the actual generator cannot be identified and recovery made.
3. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability
that may result in the event the right -of -way for a PROJECT., :including, but not limited to, being
clear as certified or if said. right-of-way is found to contain hazardous materials requiring
treatment or removal to remediate in accordance with Federal and State laws. ADMINISTERING
AGENCY shall pay, from its own non- matching funds, any costs which arise out of delays to the
construction of PROJECT because utility facilities have not been timely removed or relocated, or
because rights -of -way were not available 'to ADMINISTERING AGENCY for the orderly
prosecution of PROJECT work.
Page 5 of 1'6
ARTICLE III. - MAINTENANCE AND MANAGEMENT
1, ADMINISTERING AGENCY will maintain and operate the property acquired, developed,
constructed, rehabilitated, or restored by PROJECT for its intended public use until such time as
the parties might amend this AGREEMENT to otherwise provide, With the approval of STATE,
ADMINISTERING AGENCY or its successors in interest in the- PROJECT property, may transfer
this obligation and responsibility to maintain and operate PROJECT property for that intended
public purpose to another public entity.
2. Upon ADMINISTERING AGENCY's acceptance of the completed construction contract or upon
contractor being relieved of the responsibility for maintaining and protecting PROJECT,
ADMINISTERING AGENCY will be responsible for the maintenance, ownership, liability, and the
expense thereof, for PROJECT in a manner sati-sfactory to the authorized representatives of
STATE and if PROJECT falls within the jurisdictional ; limits of another Agency or Agencies, it is the
duty of ADMY'NISTERI.NG AGENCY to facilitate a separate maintenance agreement(s) between
itself and the other jurisdictional: Agency or Agencies providing for the operation, maintenance,
ownership and liability- of PROJECT. Until those agreements are executed, ADMINISTERING
AGENCY will be responsible for all PROJECT operations, maintenance, ownership and liability in
a manner satisfactory to the authorized representatives of STATE. If, within ninety (90) days after
receipt of notice from STATE that a PROJECT, or any portion thereof, is not being properly
operated and maintained and ADMINISTERING AGENCY has not satisfactorily remedied the
conditions complained of, the approval of future STATE FUNDED PROJECTS of
ADMINISTERING AGENCY will be withheld; until the. PROJECT shall have- been put in a condition
of operation and` maintenance satisfactory -to STATE. The provisions of this section shall not
apply to a PROJECT . that has been vacated through. due process of law with STATE's
concurrence.
3. PROJECT and its facilities shall be maintained by an. adequate and well- trained staff of
engineers and /or such other professionals and, technicians as PROJECT reasonably requires.
Said operations and maintenance staff may be employees of ADMINISTERING AGENCY,. another
unit of government, or a contractor under agreement with ADMINISTERING AGENCY. All
maintenance will be performed at regular intervals or as required for efficient operation of the
complete PROJECT improvements.
Page '6 of 16
ARTICLE IV - FISCAL PROVISIONS
1. All contractual obligations of STATE are subject to the appropriation of resources by the
Legislature and the .allocation of resou.roes by the CTC,
2, STATE'S financial commitment of STATE FUNDS will occur only upon the execution of this
AGREEMENT, the execution of each :project- specific PROGRAM SUPPLEMENT and/or STATE's
approved finance'letter.
1 ADMINISTERING AGENCY may submit signed duplicate invoices. in arrears for :reimburse:ment
of allowable PROJECT costs on a monthly or quarterly progress basis once the project- specific
PROGRAM SUPPLEMENT has been executed by STATE.
4: ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six
months commencing after the STATE FUNDS are encumbered on either the project- specific
PROGRAM SUPPLEMENT or through a - project - specific finance Fetter approved by STATE.
STATE reserves the right to suspend future allocations and invoice payments for any on -going or
future STATE FUNDED project performed -by ADMINISTERING AGENCY if PROJECT costs have
not been invoiced by ADMINISTERING AGENCY for a six -month period
5. :Invoices shall be submitted on ADMINISTERING AGENCY letterhead that includes the address
�of ADMINISTERING AGENCY and. shall be formatted in accordance with Chapter 5 of the LAPM.
6, Invoices must have at least one copy of supporting backup documentation for allowable costs
incurred and claimed for reimbursement by ADMINISTERING AGENCY. Acceptable backup
documentation includes., but is not limited to, agency's progress payment to the 'contractors,
copies of cancelled checks showing amounts made payable to vendors and contractors, and /or a
computerized summary of PROJECT costs.
7. Payments to ADMINISTERING AGENCY can only be released by STATE' as reimbursements
of actual allowable PROJECT costs already incurred and paid for by ADMINISTERING AGENCY.
8. An indirect cost allocation plan a:nd related documentation .are to be provided to STATE
(Caltrans Audits ,& investigations) annually for review and approval prior to ADMINISTERING
AGENCY seeking reimbursement of indirect cost incurred within each fiscal year being claimed for
reimbursement.. - The indirect cost allocation plan must be prepared in accordance with the
requirements set forth in Office of Management and Budget Circular A -87 and Chapter 4 of the
Local Assistance Procedures Manual,
9. STATE will withhold the greater of either two (2) percent of the total of all STATE .FUNDS
encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY
submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT
PROJECT.
10. The estimated total cost of PROJECT, the amount of STATE FUNDS obligated, and the
required matching funds may be adjusted by mutual consent of the PARTIES with an allocation
letter and finance Letter. STATE FUNDING may be increased to cover PROJECT cost increases
only if such additional funds are available and the CTC a.nd /or STATE concurs with that increase
in the form of an allocation and finance letter,
Page 7 of 16
11, When such additional STATE FUNGUS are not available, ADMINISTERING AGENCY agrees
that any increases in PROJECT costs must be defrayed with ADMINISTERING AGENCY's own
funds,
12. ADMINISTERING AGENCY shall use its own non STATE FUNDS to finance the local share of
eligible costs and all: PROJECT expenditures or contract items ruled ineligible for financing with
STATE FUNDS, STATE shall make the final determination of ADMINISTERING AGENCY's cost
eligibility for STATE FUNDED financing with respect to claimed PROJECT costs.
13. ADMINISTERING AGENCY will reimburse STATE for STATE's share of costs for work
performed by STATE .at the. request of ADMINISTERING AGENCY. STATE's costs shall include
overhead assessments in accordance with section 8755.1 of the State Administrative Manual.
14, STATE FUNDS allocated from the STIP are subject to the timely use of funds provisions
enacted by Senate Bill 45, approved in 1997, and subsequent STIP Guidelines and State -
procedures approved by the CTC and STATE.
15. STATE FUNDS encumbered for PROJECT are avail -able for liquidation only for five (5) years
from the beginning of the State fiscal year when those funds were appropriated in the State
Budget. STATE' FUNDS not liquidated within these periods will be reverted unless. a Cooperative
Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and, approved by the
California Department of Finance in accordance with Government Code section 16304. The exact
date of fund reversion will be reflected in the STATE signed PROJECT finance letter.
16, Payments to ADMINI•STERI:NG AGENCY for PROJECT- related travel, and subsistence (per
diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors
claimed for reimbursement. or as local match credit shall not exceed rates. authorized to be paid to
rank anal. file STATE emiployees under current State Department of Personnel Administration.
(DPA) rules. If the rates invoiced by ADMINISTERING AGENCY are in excess of ,DPA rates,
ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments
.inadvertently paid by STATE -shaIl be reimbursed: to STATE by ADMINISTERING AGENCY on
demand,
17, ADM'INISTERIN'G AGENCY agrees to comply with Office of Management and Budget (OMB)
Circular A -87, Cost Principles for State and Local Governments, and 49 CFR, Part 18, Uniform-
Administrative Requirements for Grants and Cooperative Agreements to , State and Local
Governments,
18, ADMINISTERING AGENCY, agrees,, and will assure that its contractors and subcontractors will
.be obligated to agree that (a) Contract Cost Principles and Procedures, - 48 CFR, Federal
Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the
allowability of individual PROJECT cost items and (b) those parties shall comply with federal
administrative- procedures in accordance with 49 CFR,, Part 18', Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and .Local Governments. Every
sub - recipient receiving; PROJECT funds as a contractor or sub - contractor under this
AGREEMENT shall comply withr Federal administrative procedures in accordance with 49 CFR,
Part 18, Uniform Administrative Requirements for Grants. and Cooperative Agreements to State
and Local; Governments. ADMINISTERING AGENCY agrees to comply with the provisions set
Page 8 of 16
forth in 23 CFR Parts 140, 645 and 646 when contracting with railroad and utility cornpanies
19. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit
that are determined by subsequent audit to be unallowable under OMB Circular A -87, 48 CFR,
Chapter 1, Part 31, 23 CFR Parts 140, 645 and 646 or 49 CFR, Part 18, are subject to repayment
by ADMINISTERING AGENCY to STATE.
20. Upon written demand by STATE, any overpayment to ADMINISTERING AGENCY of.amounts
invoiced to STATE shall be returned to STATE.
21. Should ADMINISTERING AGENCY fail to refund any moneys due STATE as provided herein
or should ADMINISTERING AGENCY breach this AGREEMENT by failing to complete PROJECT
without adequate justification and approval by STATE, then., within thirty (30) days of demand., or
within such other period as may be agreed to in writing between the PARTIES hereto, STATE,
acting through the State Controller, the State Treasurer, the CTC or any other public entity or
agency, may intercept, withhold and demand the transfer of an amount eq.ual to the amount paid
by or owed to STATE for each PROJECT, from future .apportionments, or any other funds due
ADMINISTERING AGENCY from the Highway Users Tax Fund or any other sources of funds,
and /or may also withhold approval of future STATE FUNDED projects proposed by
ADMINISTERING AGENCY,
22. Should AD'MINIST'ERING AGENCY be declared to be in breach of th:1s AGREEMENT or
otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a joint
powers authority, special district, or any other'pu:blic entity not directly receiving funds through the
State Controller., STATE is authorized to obtain reimbursement from whatever sources of funding
are - available, including the withholding or transfer of funds, pursuant to Article 1V - 21, from those
constituent entities .comprising a joint powers authority or by bringing of an .action against
ADMINISTERING AGENCY or its constituent .member entities, to recover all funds provided by
STATE hereunder.
23. ADMINISTERING AGENCY acknowledges that the signatory party represents the
ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers
Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would .restrict or
otherwise limit STATE's ability to recover STATE FUNDS improperly spent by ADMINISTERING
AGENCY in contravention,of the terms of this AGREEMENT.
Page 9of -16
ARTICLE V
AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS
1. STATE reserves the right to conduct technical and financial audits of PROJECT work and
records when determined to be necessary or appropriate and ADMINISTERING AGENCY agrees,
and shall require its contractors and subcontractors, to agree, to cooperate with STATE by making
all appropriate and relevant PROJECT records available for audit and copying as required by
paragraph three (3) of Article V.
2, ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain an
accounting. system- and records that properly accumulate and segregate incurred PROJECT costs
and matching funds by line item for the PROJECT.. The accounting system of ADMINISTERING
AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting
Principles, unable the determination of incurred costs at interim points of completion, and provide
support for reimbursement payment vouchers or invoices sent to. or paid by STATE.
3. For the purpose of determining compliance with Title 21,, California Code of Regulations,.
Chapter 21, section 25'00 et seq., when applicable, and other matters connected with the
performance and costs of ADMINISTERI.NG AGENCY's. contracts with third parties pursuant to
Government Code section 8546.7, ADM- INISTERING AGENCY, ADMINISTERING AGENCY's
contractors and subcontractors, and STATE shall each maintain and make available for inspection
and: audit all books, documents,. papers, accounting records, and'other evidence pertaining to the
performance of such contracts, including, but not limited to, the costs of administering those
various contracts. All of the above-referenced parties shall make such AGREEMENT and
PROGRAM SUPPLEMENT materials available at their respective offices at all reasonable times
during the entire PROJECT period and for three (3) years from: the date of final payment to
ADM'I`NISTERING. AGENCY under any PROGRAM SUPPLEMENT. STATE,. the California State
Auditor, or any duly authorized representative of STATE or the United States, shall each have
access to any books, records, and documents that are pertinent to a PROJECT for audits,
examinations, excerpts, and transactions and ADMINISTERING AGENCY shall furnish copies
thereof if requested.
4. A.DM:INISTERfNG AGENCY is required to have an audit in accordance with the Single Audit Act
of OMB Circular A -133 if it receives a total of $500,000 or snore in STATE FUNDS in a single
fiscal. year. The STATE FUNDS -received under PROGRAM SUPPLEMENT are a part of the
Catalogue of Fe.d.eral Domestic Assistance (CFDA) 20.205, Highway Planning and Research.
5, ADMINISTERING AGENCY agrees to include all PROGRAM SUPPLEMENTS adopting the
terms of this AGREEMENT In the schedule of projects to be examined in ADMINISTERING
AGENCY'S' annual audit and in the schedule of projects to be examined under its single audit
prepared i:n accordance with OMB Circular A -133,
6, ADMINISTERING AGENCY shall not award a construction contract over $10,000 or other
contracts over, $25,000 [excluding professional service contracts of the type which are required to
b& procured in accordance with Government Code sections 4525 (d), (e) and (f)] on the basis of a
noncompetitive negotiation for work to be performed under this AGREEMENT without the prior
written approval of STATE. All contracts awarded by ADMINISTERING AGENCY intended or
used as local match credit must meet the requirements set forth in this AGREEMENT regarding
local match funds.
Page 10 of 16
7. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT
shall contain all of the provisions of Article IV, FISCAL PROVISIONS, and this ARTICLE V,
AUDITS; THIRD- PARTY ,CONTRACTING., RECORDS RETENTION AND REPORTS and shall
mandate that travel and per diem reimbursements and third -party contract reimbursements to
subcontractors will be allowable as PROJECT costs on-ly after those costs are incurred and paid
for by the subcontractors.
8. To be' eligible for :Local match credit, ADMINISTE-RING AGENCY must ansu.re that local match
funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in the
same manner that is required of all other PROJECT expenditures.
9. 'In addition to the above, the ,pre -award requirements of third -party contractor /consultants with
ADMINISTERING AGENCY should be consistent with LOCAL ASSISTANCE PROCEDURES..
Page 11 of 16
ARTICLE VI - MISCELLANEOUS PROVISIONS
1. ADMINISTERING AGENCY agrees to use all PROJECT funds reimbursed hereunder only for
transportation purposes that' are in conformance with Article XIX of the California State
Constitution and other California laws.
2. ADMINISTERING AGENCY shall conform to all applicable State and Federal statutes and
regulations, and the Local Assistance Program Guidelines and Local Assistance. Procedures
Manual as published by STATE and incorporated: herein, including all subsequent approved
revisions thereto, applicable to PROJECT unless otherwise designated in the project- specific
executed PROJECT SUPPLEMENT.
3, This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute
enacted by the State Legislature or adopted by the CTC that may affect the provlsi.ons,. terms, or
funding- of this AGREEMENT in any manner.
4. ADMINISTERING AGENCY and the officers and employees of ADM - INISTERING AGENCY,
when engaged in. the performance of this AGREEMENT, shall act in an independent capacity and
not as officers, employees or agents of STATE.
5. Each project- specific PROGRAM SUPPLEMENT shall' separately establish the terms and
funding limits for each described PROJECT funded under this AGREEMENT and that PROGRAM
SUPPLEMENT. No STATE FUNDS are obligated against this AGREEMENT.
6, ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its principals
are suspended or debarred at the. time of the execution of this AGREEMENT, and
ADMI.NI.STERING AGENCY agrees that it will notify. STATE Immediately in the event a
suspension or a. debarment occurs after the execution of this AGREEMENT.
7, ADMINISTERING AGENCY warrants, by execution of this AGREEMENT, that no person or
selling agency has been employed or retained to solicit or secure this AGREEMENT upon an
agreement or understanding for 'a commission, percentage, brokerage, or confingent fee,
excepting bona fide employees or bona fide established commercial or selling agen:c ►es
maintained by ADMINISTERING AGENCY for the purpose of securing business. For breach or
violation of this warranty, STATE has the right to, annul this AGREEMENT without liability, pay
only for the value of the PROJECT work actually performed, or in STATE's discretion,. to deduct
from the price of PROGRAM SUPPLEMENT consideration, or otherwise recover,. the full amount
of such commission, percentage, brokerage, or contingent fee.
8. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY hereby
certifies under penalty of perjury that no. more than one final unappealable finding of contempt of
court by a federal court has been issued against ADMINISTERING AGENCY within the immediate
preceding two (2) year period because of ADMINISTERING AGENCY's failure to comply with an
order of a federal court that orders ADMINISTERING AGENCY to comply with an order of the
National Labor Relations Board.
9, ADMINISTERING AGENCY shall disclose any financial, business, or other relationship with
STATE that may have an impact upon the outcome of this AGREEMENT or any individual
PROJECT encompassed within a: PROGRAM SUPPLEMENT, ADMINISTERING AGENCY shall
also list current contractors who may have a financial interest in the outcome of a PROJECT
undertaken pursuant to this AGREEMENT.
Page 12 of 16
10, ADMINISTERING AGENCY hereby certifies that it does not now have nor :shall it acquire any
financial or business :interest that would conflict with the performance of any PROJECT initiated
under this AGREEMENT,
11, ADMINISTERING AGENCY warrants that this AGREEMENT was not obtained or secured
through rebates, kickbacks or .other unlawful consideration e.ithe.r promised or- paid to any STATE
employee. For breach or violation of this warranty, STATE shall have the right, in its sol.e
discretion, to terminate this AGREEMENT without liability, to pay only for PROJECT work actually
performed, or to deduct from a PROGRAM SUPPLEMENT price or otherwise recover the full
a:mount of such rebate, 'kickback, or other unlawful consideration.
12. *Any dispute concerning a question of fact arising under this AGREEMENT that is not disposed
of by agreement shall be decided by the STATE's Contract Officer, who may .consider any written
or verbal evidence submitted by ADMINISTERING AGENCY, The decision of the Contract
Officer, .Issued in writing, shall be conclusive and binding on the PARTIES on all questions of fact
considered and determined by the Contract Officer.
13. Neither the pending of a dispute nor its consideration by the Contract Officer will excuse the
ADMINISTERING AGENCY from full and timely performance in accordance with the terms of this
AGREEMENT and each PROGRAM SUPPLEMENT,
14, Neither STATE nor .any officer or employee thereof is responsible for any injury, damage or
liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY
under or in connection with any work, authority or jurisdiction of ADM:IN.ISTERING AGENCY
arising under this .AGREEMENT, It is understood .and. agreed that ADMINISTERING AGENCY
shall fully defend, indemnify and save harmless STATE .and all of its officers and employees from
all claims and suits or actions of every name, kind and description brought forth under, including
but :not limited to, tortuous, contractual, inverse :condemnation or other theories or assertions of
liability occurring by reason of anything done or omitted to 'be done by ADMINISTERING AGENCY
under this AGREEMENT.
15. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for any
injury, damage or liability occurring by reason of anything done or omitted to 'be done by, under or
in connection with. any work, authority or jurisdiction arising under this AGREEMENT, it is
understood and agreed that STATE shall fully defend, indemnify and save, harmless the
ADMINISTERING AGENCY and all of its officers and employees from all claims, suits or actions
of every name, kind and description brought forth under, including but not .limited to, tortuous,
contractual, inverse condemnation and other theories or assertions of liability occurring by reason
of anything done or omitted to be done by STATE under this AGREEMENT,
16, In the event of (a) ADMINISTERING AGENCY failing to timely proceed with effective
PROJECT work in accordance with the project- specific PROGRAM SUPPLEMENT; (b) failing to
maintain any applicable bonding requirements; and {c) otherwise materially violating the terms and
conditions of this AGREEMENT and /or any PROGRAM SUPPLEMENT, 'STATE reserves the right
to terminate funding for that PROJECT upon thirty (30) days' written notice to ADMINISTERING
AGENCY.
17, No termination notice shall become effective if, within thirty (30) days after receipt of a Notice
of Termination, ADMINISTERING AGENCY either cures the default involved or, if the default is
not reasonably susceptidle of cure within said thirty (30) day period the ADMINISTERING
Page 13 of 16
AGENCY proceeds thereafter to complete that cure in a manner and time line acceptable to
STATE.
16. Any such termination shall be accomplished by delivery to ADMINISTERING AGENCY of a
Notice, of Termination, which notice shall- become effective not less than thirty (30) days after
receipt, specifying. the reason for the termination, the extent to which funding of work under this
AGREEMENT and the applicable PROGRAM SUPPLEMENT Is terminated: and the date upon
which such termination becomes effective, if beyond thirty (30) days after receipt. During the
period before the effective termination date, ADMI.NISTERIN'G AGENCY and STATE shall meet to
attempt to resolve any dispute. In the event of such termination., STATE may proceed with the
PROJECT work in' a: manner deemed proper by STATE. If STATE terminates funding for
PROJECT with ADMINISTERING AGENCY for the reasons stated in paragraph sixteen (16) of
ARTICLE Vi, STATE shall pay ADMINISTERING AGENCY the- sure due ADMIN'ISTER.ING
AGENCY under the PROGRAM SUPPLEMENT and /or. STATE - approved finance Letter prior to
termination, provided', however, ADMINISTERING AGENCY is not. in default of the terms and
conditions of this AGREEMENT or the project- specific PROGRAM SUPPLEMENT and that the
cost of any PROJECT completion to STATE shall first be deducted from any sum due
ADMINISTERING AGENCY,
19. In the case of inconsistency or conflicts with the terms of this AGREEMENT and that of a
project- specific PROGRAM SUPPLEMENT and /or Cooperative Agreement,. the terms stated in
that PROGRAM SUPPLEMENT and /or Cooperative Agreement shall prevail over those in this
AGREEMENT.
20; Without the written consent of STATE,. this AGREEMENT is not assignable by
ADMINISTERING AGENCY either in whole or in part.
21. No alteration or variation of the terms, of this. AGREEMENT shall, be valid unless made in
writing and signed by the PARTI:E.S, and no oral' understanding or agreement not incorporated
herein. shall be binding on any of the PARTIES.
IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their du:ly authorized
officer.
STATE OF CALIFORNIA City of Los Gatos.
DEPARTMENT OF TRANSPORTATION
Chief, Office of Project Implementation
Division of Local Assistance
Date
Page 14 of 16
City of Los Gatos
Representative Name & Title
(Authorized' Governing Body Representative)
Date
EXHIBIT A - FAIR EMPLOYMENT PRACTICES ADDENDUM
1. In the performance of this Agreement, ADMIN.ISTERIN.G AGENCY will not discriminate against
any employee for employment because of race, color, sex, sexual orientation, religion, age,
ancestry or national origin, physical disability, medical condition, marital status, political affiliation,
family and medical care leave, pregnancy leave, or disability leave. ADMINISTERING AGENCY
will take affirmative action to ensure that employees are treated during employment without regard
to their race, sex, sexual orientation, color, religion, ancestry, or national origin, physical disability,
medical condition, marital status, political affiliation, family and medical care leave., pregnancy
leave, or disability leave. Such action shall include, but not be limited to, the following:
employment; upgrading.; demotion or transfer; recruitment or recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and selection for training, including
apprenticeship. ADMINISTERING AGENCY shall post in conspicuous places, available to
employees for employment, notices to be provided by STATE setting forth the provisions of this
Fair Employment section.
2. ADMINISTERING AGENCY, its contractors) and all subcontractors shall comply with the
provisions of the Fair Employment and Housing Act (Gov:: Code, 1290 -0 set seq.), and the
applicable regulations promulgated thereunder -(Cal. Code .Begs., Title 2, 7285.0, et seq..). The
applicable regulations of the Fair Employment and Housing Commission implementing
Government Code section 12900(a -f), set forth in Chapter 5 of Division 4 of Title 2 of the
California Code of Regulations are incorporated into this AGREEMENT by reference and made a
part hereof as if set forth in full. Each of the ADMINISTERING AGENCY'S contractors and all
subcontractors shall give written notice of their obligations under this clause to labor organizations
with which they have a collective bargaining or other agreements, as appropriate.
3. ADMINISTERING AGENCY shall include the nondiscrimination and compliance provisions of
this clause in all contracts and subcontracts to perform work under this AGREEMENT.
4. ADMINISTERING AGENCY will permit access to the records .of employment, employment
advertisements, application forms, and other pertinent data and records by STATE, the State Fair
Employment and :Housing Commission, or any other agency of the State of California designated
by STATE, for the purposes of. investigation to ascertain compliance with the Fair Employment
section of this Agreement.
5. Remedies for Willful Violation:
(a) STATE may determine a willful violation of the Fair Employment provision to have occurred
upon.receipt of a final judgment to that effect from a court in an action to which ADMINISTERfNG
AGENCY was a party, or upon receipt of a written notice from the Fair Employment and .Housing
Commission that it has investigated and determined that ADMINISTERING AGENCY has violated
the Fair Employment Practices Act and had issued an order under Labor Code section 1426 which
has become final or has obtained an injunction under Labor Code section 1429.
(b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate
this Agreement either in whole or in part, and.any loss or damage sustained by STATE in securing
the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY and
by the surety under the performance bond, if any, and STATE may deduct from any moneys due
Page 15 of 16
or thereafter may become clue to ADMINISTERING AGENCY, the difference between the price
named in the Agreement and the actual cost th.ereof to STATE to cure ADMINISTERING
AGENCY's breach of this Agreement,
Page 16 of 16