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HomeMy WebLinkAbout1997-03-24 City Council (15)TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: Community Services DATE:March 24,-1997 CMR: 180:97 SUBJECT:Request for Supplemental Funding for La Comida Senior Nutrition Program for FY 1996-97--Budget Amendment Ordinance REQUEST This is to request that the Council 1) approve the attached Budget Amendment Ordinance, which creates an appropriation for La Comida de California in the 1996-97 CDBG allocations, and 2) approve the attached contract with La Comida for $10,125 in 1996-97 CDBG funds. The funds will supplement the current year bridget ofLa Comida’s Senior Nutrition Program. The funding will partially offset a $17,367 funding reduction from the County of Santa Clara Social Services Agency. RECOMMENDATIONS: Staffrecommends that Council approve the recommendation to utilize unspent CDBG funds earmarked for Innovative Housing for FY 1996-97 for supplementing La Comida’s FY 1996- 97 program budget. POLICY IMPLICATIONS City policy has been to provide contract funding to an individual nonprofit :agency from either the Human Services Resource Allocation Process (HSRAP) or the CDBG Program, but not from both programs simultaneously. This proposed action is a one-time exception. EXECUTIVE SUMMARY Background On November 1, 1996, La Comida was informed of an immediate funding reduction in the amount of $17,367 from Santa Clara County’s Social Services Agency (see Attachment One). This notice followed verbal assurances by County staff to La Comida staff indicating that its contract funds would equal the previous year’s amount. La Comida, therefore, ¯ budgeted accordingly for FY 1996-97. Subsequently, board members from La Comida met with County Officials to discuss the ramifications of the proposed budget action (see Attachments Two and Three). CMR:180:97 Page 1 of 3 The City of Sunnyvale received a similar letter stating the same rationale and reducing their program funding by $28,913. After contacting other agencies, it was determined that at least three other cities, (Cupertino, Gilroy and Morgan Hill), contributed no funds whatsoever to support their senior nutrition program sites, yet their program funding was not reduced. This discrepancy was brought to the attention of County staff, who indicated these three cities provided in-kind contributions instead. At this juncture, City staff clarified Palo Alto’s contribution which involves in-kind as well as financial support (see Attachment Four). The value of the City’s in-kind support includes free space and 75 percent of the cost of related utilities. This contribution exceeds $110,425 annually. In response to this information, County staff stated that there were greater needs in the South County area, and that Palo Alto and Sunnyvale could absorb the cuts easier than other regions of the County (see Attachment Five). Discussion Staffhas been working with La Comida to ensure continuance of its daily lunch program for seniors at the Senior Coordinating Council’s dining hall for the remainder of the current fiscal year. In FY 1996-97, $13,500 in CDBG Public Service Funds was allocated to Innovative Housing for shared and transitional housing services. The Innovative Housing closed its doors on November 22, 1996, having spent $3,375 of its allocation. The remaining $10,125 is available for reallocation to another public service program during Fiscal Year 1996-97, or to any other CDBG eligible project. Staff recommends utilizing unspent CDBG funds which were allocated to Innovative Housing for Fiscal Year 1996-97. The CDBG Citizens Advisory Committee met on February 6, 1997 and recommended those unspent funds be reallocated to La Comida for FY 1996-97. The reallocation of $10,125 will not match the County’s midyear budget cut. La Comida’s Board, therefore, has taken steps to increase revenues for the remainder of this budget year. They have requested an increased donation from their clients of an additional 25 cents per meal. This would raise approximately $4,000 for the remainder of this fiscal year. Also, the Senior Coordinating Council has agreed to waive the lease amount charged to La Comida on a month-by-month basis, until additional solutions are forthcoming (see Attachment Seven). FISCAL IMPACT This one-time action will assist La Comida to meet its funding deficit for the current fiscal year only. As Attachment Five indicates, the County expects the City of Palo Alto to make up any funding deficit in 1997-98 and subsequent years. Staff is working with the La Comida representatives and the Senior Coordinating Council on a long-range funding plan. CMR:180:97 Page 2 of 3 ENVIRONMENTAL ASSESSMENT For purposes of the California Environmental Quality Act (CEQA), the activities covered by this agreement are classified as categorically exempt. For purposes of the National Environmental Policy Act (NEPA), the activities are classified as exempt. PREPARED BY: David F. Martin, Administrator, Office of Human Services DEPARTMENT HEAD REVIE~ PAUL THILTGEN Director of Community Services CITY MANAGER APPROVAL: Attachment One: Attachment Two: Attachment Three: Attachment Four: Attachment Five: Attachment Six: Attachment Seven: Attachment Eight: Attachment Nine: Letter from County to La Comida dated 11/1/96 Letter from La Comida to County dated 11/18/96 Letter from La Comida to County dated 11/26/96 Letter from City to County Social Services Agency dated 12/19/96 Letter from County to City dated 2/14/97 Letter from City to County Social Services Agency to City dated 2/28/97 Letter from La Comida to Senior Coordinating Council Budget Amendment Ordinance C.D.B.G. Contract / Scope of Services - cc:Human Relations Commission C.D.B.G. Citizens Advisory Committee CMR: 180:97 Page 3 of 3 County of Santa Clara Social Sere’ices Agency 1725 Technology Drive San Jose. California 951 I O- 1360 ATTACHMENT ONE November 1, 1996 Crystal Gamage La Comida Agency Representative 1568 Channing Avenue Palo Alto, CA 94303 Dear Crystal, The Santa Clara County Senior Nutrition and Services Program has completed the preparation of the Fiscal Year 1996 - 97 Contract for your nutrition site. This year we have had to look closely at all sources of funding for the program. The Nutrition Program has been striving to maintain or enhance the current level of services, while.facing a reduced level of funding and increased costs... The area which is of most concern is the amount of funding being committed from the city in which your site is located, compared to theamount of County " funds which are being expended in support of your program. We have attached a chart illustrating the range of support which is being committed by cities to programs located in their area.. The County share of funding for your program has grown from 13% to 25% since the time of inception of your program. The current level of support from your city is at 4.66%. In order to rectify this inequity, this year we will be reducing the County share of funding available to your program by half, which will mean a reduction of $17,367, in order to allocate additional meals to the County-wide home delivered meal program for persons on the waiting list. The total budget ~allocation for your program will be $114,501. We need to hear from you as soon as possible regarding the plan .you have for either managing your program at this level of funding, or obtaining additional funding for your program. Board of Supervisors: Michael M. Honda, Blanca Alvarado, Ron Gonzales. James T. Beall .It,, Dianne McKenna ~". County Executive: Richard Wittenberg :.": Page 2 Crystall Gamage, .. If you have further questions,//I can be reached at (408) 441-5600, Kathy G~dJagher, Chief Administrative Officer KG/LSC:bc Attachment CONTRACTED FUNDING FROM CITIES AS A PERCENT OF TOTAL SITE CONTRACT F.Y. 1996 - 1997 MILPITAS 50.00% CAMPBELL SAN JOSE MOUNTAIN VIEW ,LOS GATOS SANTA CLARA 46.18% 30.76% 22.70% 15.97% 15.22% SUNNYVALE PALO ALTO TOTAL 6.51% 4.66% 23.68% LA ATTACHMENT TWO COMIDA DE CALIFORNIA,.INC. 450 BRYANT STREET PALO ALTO, CALIFORNIA 94301 November 18, 1996 Ms. Kathy Gallagher County of Santa Clara Social Services Agency 1725 Technology Drive San Jose, CA 95110-1360 Dear Ms. Gallagher, Needless to say, we were surprised and shocked when we received your letter of November 1 telling us that the budget for La Comida had been cut by $17,367. "~he news was particularly disturbing because we had received no indication from your office that a reduction of that magnitude ~vas coming. In addition, the timing of the notice has made it all but impossible to meet our obligation to provide high quality meals for our clients for the remainder of this fiscal year. According to your letter, the decision to reduce our funding was based in large part upon the belief that the amount of support provided by the City of Palo Alto was too small. You mention the "inequity" ofPalo Alto’s level of support in your letter, but there seems to be. very little equity in the decision to slash La~ Comida’s budget without warning because Palo Alto’s contribution was deemed inadequate. To our knowledge, there are no guidelines forcontributions from cities hosting nutrition sites. Neither La Comida nor the City of Palo Alto has received any infoi’mation about the contribution level expected from the cities. The cut in the La Comida budget is particularly distressifig, be~iause we believe that S~ve.r.al sites received the sa,me.funding as they received last year, while others actually received an increase. Your letter included a table listing the contributions of certain cities and showing that Sunnyvale and Palo Alto contributed the least. It is apparent that the examples were selected to support the County’s position, since we understand that several cities contribute no funds toward the program. Considering the lack of guidelines together with the apparent arbitrary nature of the decision, the degree of inequity seems even larger. The timing of the information about the cut is at least as disturbing as the amount. We tried for several weeks to get information from the Senior Nutrition and Services Program about our ’96-’97 budget, but our calls were not returned. We regularly submit La Comida’s monthly budget reports, and the reports for the past four months have shown us operating at the same level as last year. Even though those reports were available, and Senior Nutrition Program staff were aware of our expenditure rate, no one gave us any indication that there was a pending budget problem. As a result of the lack of communication from the County, and consistent with our instructions in past years, we continued operating at the prior year’s level. If we had known earlier about the amount of the cut, or even the high probability of a cut, we could have adjusted our expenditure rate before we were more than four months into the fiscal year. Having ~erved meals for more than four months with an average raw food cost of approximately $1.37 per meal, we must now serve meals at $1.12 in order to reach the contract average for the year of $1.25. We know from experience that we cannot meet nutrition guidelines at $1.12 per meal. Learning about the cuts this late in the fiscal year also makes it extremely difficult to supplement our budget from other sources. It is too late to plan a major fund raising event. The City is \vorking on next year’s budget and probably will not be able to help with this year’s problems. Needless to say, we will explore all sources of emergency funding, but we cannot count on receiving significant help between now and the end of this fiscal year. As you suggested in your letter, we are examining plans for the remainder of this year based on the reduced funding level. However, we already have concluded that if we are not successful in securing additional funding, we will have to reduce the current high quality of food and service, strictly limit the number of participants, or institute some combination of the two. None of the alternatives is acceptable to us, but we would have no choice. Considering all the circumstances surrounding the proposed budget cut, we are askingfor a complete review and reconsideration of the amount of the reduction in the La Comida budget. La Comida has received many highly complimentary site visit reports. The reports regularly cite the.quality of the food and the efficiency of the operation. We are diligent in providing the best possible service to our clients. We will do our best to continue that tradition. Very truly yours, George S. Wheaton President, La Comida Board of Directors Palo Alto City Council Department of Community Services, City of Palo Alto Palo Alto Senior Coordinating Council Page 2 ATTACHMENT THREE INC. November 26, 1996 Ms. Kathy Gallagher County of Santa Clara Social Services Agency 1725 Technology Drive San Jose, CA 95110-1360 .Dear Kathy, During the meeting at your office on November 20 to discuss the reduction of County funds for the La Comida program, we ageed on several points concerning the contract between La C0mida and Santa Clara County. We have signed the contract as it was written, so that it could be presented tothe County Supervisors on schedule. The points we agreed upon, however, differ from the terms of that contract, and we want to be sure that the implications are clear. The agreement we reached in your office centers on two principal actions thatLa Comida may take to counteract the effect of the budgi~t cutby the County: La Comida may increase the amount of the contribmion requested from the participants in the lunch program. In contrast ~vith the terms of the new contract, La Comida may retain the difference between the average amount collected to date, which is $1.36 per meal; and the amount actually collected after’the increase. This difference will be" used by La Comida for oper~iting expenses, including raw food, if necessary. La Comida \vill remit to the County an amount equal to the lesser of $1.36 per meal served or the amount actually collected. La Comida \viii be allowed to re-negotiate .the contract with the County if we are forced to change the program for lack of funds. Changes may include reducing the number of meals served per day, reducing the number of operating days per week,, or even closing the facility tbr some period of time. In addition, you agreed to provide La Comida with a letter describing the County’s .expectations of funding levels .by cities where senior nutrition programs are located. We ~511 use that letter as support for our request for fundingfrom the City of Paio Alto. Finally, you agreed to investigate the possibility of giving La Comida a portion of the R~nds originally budgeted for other sites that did not receive funding cuts, and to consider distributing to La Corn ida some portion of any surplus funds that may remain at year-end. If this letter reflects your understanding of our agreement, will you please sign one copy of the letter and remm it to me at the address above. If you should have any questions or if you xvould like to discuss any of the issues I have addressed, please call me at my office, (415) 329-0983. Sincerely, George S. Wheaton President, La Comida Board of Directors Signed:Date: 2 ATTACHMENT FOUR City Palo Alto O~ ~the Cihy Ma~ager December 19, 1996 Kathy Gallagher Chief Administrative Officer County of Santa Clara Social Services Agency 1725 Technology Drive San Jose, CA 95110 Dear Ms. Gallagher: I am writing to express the City of Palo Alto’s dismay about the 50 percent cutback in contract funding recently experienced by the Palo Alto Senior Nutrition program, La Comida de California. We are not surprised that reductions in program funding need to occur in these difficult times; however, the process used in this instance defies normal contracting procedures, and the lack of advance notice jeopardizes a or=t~oal serv=ce provided to our elderly population, For the first five months of the current fiscalyear, the County has continued to reimburse La Comida at their previous level. Obviously, with no indication that this action was on the horizon, the late notification precludes the program from procuring additional funds to make up for the cut this year. The City of Pa!o Alto’s Human Services Contract Request Process starts in January for proposals due the following fiscal year. if this funding cut were known in advance, La Comida could have requested additional funds from the City and other er~tities in advance of the program year. in this ease, La Comida has no plausible option available to raise an additional $17,367 for the remaining portion of the current fiscal year. in my telephone conversation with you, you referenced a chart that your office had distributed indicating the funding level of several cities. You indicated that the chart showed that Palo Alto and Sunnyvale were the lowest contributing cities and therefore that is where the needed reduction was made. I must object to the County making such an arbitrary decision based on the contribution from the City when we were never informed that there was any requirement for a set percentage of city funding being either desired or required, Since my conversation with you, I believe further inves’dgation may reveal that at least three other cities in the County provide no "support for their senior nutrition program, yet these programs were not reduced at all. If there is now a policy in place regarding city contributions to the senior nutrition. programs, please let me know as soon as possible. As we begin to plan for our next budget cycle, it would be extremely important for me to have that information. Ms. Kathy Gallagh~r December t9, 1996 Page Two I have also been informed that at the meeting you held with the La Comida ~epresentatives, you indicated that the demographics have changed and Palo Alto did not need the.current funding level. I point this out to further illustrate the crucial need for guidelines and policy to be put in place so that we are not operating in a vacuum and decisions are not made capriciously, I am requesting, if at all possible, that you reconsider the leve! of the funding reduction given to La Comida and that firm policy and guidelines be developed and forwarded to participating cities for the next funding cycle. I remind you that the latter step needs to occur on a timely basis, as we are beginning the budget process for next fiscal year this month. JF/mm cc Richard Wittenberg,County Executive ry truly you~ ty Manager George Wheaton, President, La Comida de California David Martin, Administrator, Office of Human Services County of Santa Clara Social Services Agency 1725 Technology Drive San Jose. California 95110-1360 ATTACHMENT FIVE ,-f14 -. ’ " ’" ’:: !I)) February 14, 1997 June Fleming, City Manager City of Palo Alto P.O. Box 10250 Palo Alto, Ca. 94303 Ms.-Fleming: This letter is in response to ~:oncerns that you raised regarding the level of county funding for the La Comida Senior Nutrition program. You have talked with the Senior Nutrition Program Director, Lisle Smith Cohen, and with me about this issue, and you subsequently summarized your concerns in a letter to me. As we discussed on the phone, the City of Palo Alto currently contributes a total of $6,147 to the county for senior nutrition services provided through the La Comida program. This represents 4.7% of the total program cost of $131,868. The county had been contributing $34,734 (26.4% of the cost) and recently reduced their contribution to $17,367 (13.2% of the cost). The average ~ontribution by cities is currently about 24% of total program cost. You requested information on the "formula" used by the county to measure city contributions. As I noted, there is no set "formula" for city contributions to the county or to the senior nutrition sites located in cities. Historically, the cities and county have partnered to share the cost of providing senior meals to our residents. Through this partnership, cities have been asked to match the county contribution dollar-for-dollar. "Over the years, annual increases in the cost of doing business in Palo Alto, however, have been absorbed by the county in order to avoid reducing senior meals. Unfortunately, your city has not kept pace with these increasing costs, creating a significant gap between the city and county contributions tothe La Comida program. In our discussion, you requested that the county develop a formula for city contributions, which I agreed to pursue. Program staff have been working .on County Executive: Richard wittenberg ~) SOlO PAGE 2 such a formula as part of the annual contract renegotiations which began in January 1997 and will end in March. After examining the historical and current funding relationships between the various cities and the Nutrition Program, we have concluded that a simple ratio-based formula would best meet the needs of all the parties. Simply put, we propose that cities should strive to match the county contribution dollar-for-dollar. For those cities well below that level currently, we suggest that the city increase their contribution in annual increments over the next three years to a 50% match in year one, a 75% match in year 2, and a 100% match in year three (see attached chart). This formula assumes that the county would not reduce its contribution below January 1997 levels and that the increased city revenue would fund expanded services. With this approach, sufficient advance planning notice is afforded for city budget purposes, as well as for program and county meal planning purposes. This new formula will be communicated to those cities falling below the desired dollar-for-dollar match rate. I did apologize to you, too, for the lateness of the final decision and notification to La Comida about the funding reduction for the current fiscal year,, and explained that we had been aggressively pursuing alternative funding sources that would have prevented any reductions in nutrition contracts. Finally, it was decided that a mid-year reduction, which is in concert with our normal processes, was needed in order to provide resources to the underfun~led and growing Home-Delivered Meals Program. The two contracts that were reduced were seen as the sites with the most options for securing alternative revenues.- both have great leeway for increasing participant contributions, for seeking increased city funding, and for seeking outside donations and contributions. This decision was not based solely on the level of city contribution nor was the funding reduction contingent on any action by the city. This was clarified with the La Comida representatives in a meeting that was held on November 20, 1996. At this meeting, we also discussed the demands on the Senior Nutrition Program brought about by previous county funding reductions and continued flat appropriations from the federal and state governments. Significant growth and unmet need has developed for home- delivered meals in the East San Jose and South County areas, which reflect in part the shifting demographics of the countys’ elderly population. My comments to the La Comida representatives were not that Palo Alto did not need the funding, but that absent any new additional revenue that would enable us to meet those demands without funding cuts, the county needed to shift existing resources to the area of greatest unmet need and demand which is reflective of our federal mandate to give highest priority to low-income minority populations, in this case from the North County area to the East and South County areas. We have committed to La Comida our full support and assistanc~ in helping them PAGE 3 through this difficult year. To that end, we entered into a Letter of Agreement on January 6, 1997 to allow them to retain 100% of any increases in participant contributions that they are able .to generate above the current average of $1.36 per meal. We have also committed our Community Relations staff to assist with promotional material and signage. Fundraising and donation contacts, generated for the Senior Nutrition Program by a consultant, have also been supplied to La Comida staff. We do regret the necessity of this funding reduction and reiterate our commitment to.assist La Comida in every way possible to maintain their level of service and raise additional funds, Their program and site staff have an excellent repul~ation and service record and this action is in no way a reflection on their superb program. We make a commitment to you as well, as a full partner with the county, to provide any technical assistance or additional information you may need to support a request for a funding increase from your City Council. Please know that we regret ~the confusion and communication delays regarding this issue, and appreciate your leadership in working with us to protect the nutrition program in Palo Alto. Sincerely, , ,,~ " ~ "~’"/"~" ~’~’£’~-"--~-"" Kathy M~/Galla~~er " //" Chief Administrative Officer cc:Richard Wittenberg, County Executive Yolanda Lenier Rinaldo, Agency Director George Wheaton, President, La Comida de California SENIOR NUTRITION PROGRAM SUGGESTED CONTRIBUTION FORMULA FOR CITY OF PALO ALTO Current Year 1 Year 2 Year 3 FY 96/97 FY 97/98 FY 98/99 FY 99/00 COUNTY $1 7,367 $17,888*$18,425"$18,978" CITY $ 6,147 $ .8,944 $13,819 $18,978 : Annual Dollar +$ 2,797 +$ 4,875 +$ 5,1.59 Increase ASSUMPTIONS:County shire will not be reduced. N~w City revenue.would provide for expanded services at La Comida. *Estimate an annual 3%COLA in County share. After FY 99/00, annual COLA would apply to both City and County shares. City goals:Year 1 -= 50% of County contribution Year 2 = 75% Year 3 -- 1.00% CITIES WITH REVENUE CONTRACTS WHICH ARE NOT KEEPING PACE WITH COUNTY CONTRIBUTIONS CITY Los Gatos Santa Clara Sunnyvale Palo Alto TOTAL CONTRACT $147,810 $ 72,$43 $235,924 $131,868 CITY FUNDING $ 23,600 $11,044 $15,369 $ 6,147 CITY SHARE 15.97% 15.22% 6.51% 4.66% COUNTY FUNDING $ 35,297 $ 22,537 $ 67,490 $ 35,274 COUNTY SHARE 23.90% 31.06% 28.61% 26.75% County contributions to Sunnyvale and Palo Alto were reduced by half at the annual mid- year review. Cities with Senior Nutrition Program revenue contracts that are meeting or exceeding the County contributions are Milpitas, San Jose, Campbell and Mountain View. The cities of Morgan Hill and Gilroy do not have SNP revenue contracts, but make inrkind contributions in lieu of cash in the form of.the full operating cost of the nutrition site. The City of Cupertino is the only city that has no revenue contract or in-kind contribution. Efforts have been made by the site contractor and SNP staff to secure city funding. ATTACHMENT SlX Cityof Palo Alto Office of the City Manager February 28, 1997 Kathy M. Gallagher Chief Administrative Officer County of Santa Clara Social Services Agency 1725 Technology Drive San Jose, CA 95110-1360 Dear Ms. Gallagher: Thank you for your detailed response regarding the level of County funding for the La Comida Senior Nutrition program, t may not agree with the decisions the County has made, but now I do clearly understand your position. Now that I have clarity about the issue and the County process, I am in a position to make the necessary related Palo Alto budget decisions. I do appreciate your thorough response and the attention you gave to the concerns I raised. ~/6ity Manager JF/mm CC Richard Wittenberg, County Executive Yolanda Lenier Rinaldo, Agency Director George Wheaton, President, La Comida de California Emily Harrison, Deputy City Manager David Martin, Administrator, Human Services j .P.O. Box 10250 Pato Alto, CA 94303 415.329.2563 415. 328.3631Fax ATTACHMENT SEVEN COMIDA DE CALIFORNIA, 450 BRYANT STREET PALO ALTO, CALIFORNIA 94301 INC. February4,1997 Ms. Kathleen Gwynn President Senior Coordinating Council 450 Bryant Street Palo Alto, CA’ 94301 Dear Kathi, Thank you for your recent letter telling us of the SCC Board of Directors’ action forgiving, on a month-to-month basis, the rent and pest control fee that La Comida pays to the SCC. As you requested, I am now writing you to ask that the SCC forgive the payment which would be due for the month of January. La Comida is continuing to look for funding sources that will enable us to meet fully all of our financial obligations. As I am sure you know, the County has allowed us to increase the suggested contribution from our clients and to retain the incremental funds for La Comida. In addition, we are working with the C!ty of Palo Alto to obtain some funds that became available when another organization went out of business. Current estimates indicate that funds from increased ~lient contributions will be approximately $4,000 for the remainder of the fiscal year, and that the funds from the City.will be between $8,000 and $9,000. The sum of those two, together with the forgiveness of the fee normally paid to the SCC, will total approximately $17,000, the amount that the County cut from our budget. At this point, the forgiveness of the rent and pest control fee is extremely important to La Comida’s continued operations, and we appreciate your help. Sincerely, George Wheaton President, La Comida Board of Directors cc: Emily Harrison ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1996-97 TO PROVIDE AN ADDITIONAL APPROPRIATION FOR LA COMIDA SENIOR NUTRITION PROGRAM WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 24, 1996 did adopt a budget for fiscal year 1996-97; and WHEREAS, the budget authorized $6,147 in funding for La Comida through ~the Human Services Resource Allocation Process, with the expectation that the County of Santa Clara’s Social Services Agency would also provide funding for La Comida; and WHEREAS, Santa Clara County has unexpectedly cut La Comida’s funding, by $17’,367 creating a shortfall in the budget for La Comida; and WHEREAS, pursuant to Resolution 7604, the Council allocated $13,500 in CDBG funds to Innovative Housing for fiscal year 1996-97; and WHEREAS, Innovative Housing ceased operations in November 1996, thereby leaving $10,125available in unspent CDBG Public Service funds; and WHEREAS, the .CDBG Ci£izens Advisory Committee has recommended that the $10,125 be re-allocated to La Comida; and WHEREAS, La Comida will make up the rest of the budget shortfall through a variety of other fundraising measures; and WHEREAS, City Council authorization is needed to amend the 1996-97 budget as hereinafter set forth. NOW, THEREFORE, the Council of the city of Palo Alto does ORDAIN as follows: ~. The sum of Ten Thousand One Hundred Twenty-Five Dollars ($10,125) is hereby transferred from Innovative-Housing (Project 01031) to La Comida (Project 01068) within the Federal Revenue Fund, Community Services Block Grant. SECTION 2. This transaction has noimpact on reserves. SECTION 3. As specified in Section 2.28.080(c) (i) of the Palo Alto Municipal Code, a majority vote of the City Council is required to adopt this ordinance. SECTION 4. The Council of the City of Palo Alto hereby finds that this is not a project under the Californ±a Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTIQN 5. As provided in Section 2.04.350 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Deputy City Administrative Depar~tment Manager, Services Director of Community Services Department AGREEMENT NO. BETWEEN THE CITY OF PALO ALTO AND LA COMIDA DE CALIFORNIA, INC. FOR 1996-1997 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS This Agreement No.is entered into , 1997, by and between the CITY OF PALO ALTO, a chartered city and a municipal corporation of the State of California ("City’), and LA COMIDA DE CALIFORNIA, INC., a corporation duly organized and existing under the Nonprofit Corporation Law of the State of California ("Subrecipient"). RECITALS: WHEREAS, the City has applied for and received funds ("Funds") from the Government of the United States under Title I of the Housing and Community Development Act of 1974; and WHEREAS, the City, as a grantee under the Community Development Block Grant program ("CDBG Program"), wishes to engage the Subrecipient to assist the City in utilizing such Funds; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions set forth~in.this Agreement, the parties agree: SECTION i. TERM i.i Time of Performance. Services. of the Subrecipient shall commence on March 17, 1997 and terminate on June 30, 1997. The term of this agreement and the provisions herein shall be extended to cover any additional time period during which the Subrecipient remains in control of Funds or other assets including program income. SECTION 2.SCOPE OF SERVICE 2.1 Activities.The Subrecipient shall be responsible for administering a Senior Nutrition Program ("Program"), as more fully described in Exhibit "~’, in a manner satisfactory to the City and consistent with any,and all standards.required as a condition of providing these Funds. Such Program will include the activities and administrative support eligible under the CDBG Program ("Services"), as more fully described in Exhibit "A" which is incorporated herein by ~reference and made a part of this agreement° 2.2 Levels of Accomplishment. In addition to the normal administrative services required as part of this Agreement, the Subrecipient agrees to provide the levels of Services as more fully described in Exhibit "A". 970227 syn 0071149 2.3 Staffing. The staffing and other time commitments to be allocated to each activity specified in Section 2.1 shall be as fully described in Exhibit "A". 2.4 Performance Monitoring. .The City will monitor the performance of the Subrecipient against goals and performance standards required herein. Substandard performance as determined by the City will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the City, contract suspension or termination procedures will be initiated. SECTION 3.. PAYMENT 3.1 City Payment. The Subrecipient expressly agrees and understands that the total amount to be paid by the City under this Agreement shall not exceed Ten Thousand One Hundred Twenty-Five Dollars ($10,125). Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in Exhibit "B", which is incorporated herein by reference and made a part of this agreement, and in accordance with the Subrecipient’s performance. Expenses for general administration shall also be paid against the line item budgets specified in Exhibit "B", which is incorporated herein by reference .and made a part of this Agreement, and in accordance with the Subrecipient’s performance. 3.2 A-f10 Standards. Payments may be contingent upon certification of the Subrecipient’s financial management system in accordance with the standards specified in OMB Circular A-II0, Attachment F. SECTION 4.NOTICES 4 1 Communications. All notices, correspondence, and other communications, concerning this Agreement shall be directed to the parties’ duly. authorized representatives at the addresses set forth below or at any other addresses as may be noticed, in writing: CITY City of Palo Alto Department of Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 Attn: CDBG Coordinator SUBRECIPIENT La Comida de California, Inc. 450 Bryant Street Palo Alto, CA 94301 Attn: Executive Director 970227 syn 0071149 SECTION 5.SPECIAL CONDITIONS 5.1 Compliance with Federal Regulations.The Subrecipient agrees to comply with the requirementsof the Housing and Urban Development regulations concerning Community Development Block Grants (24 CFR Part 570) and all federal regulations and policies issued pursuant to these Regulations. The Subrecipient further agrees to utilize Funds available under this Agreement to supplement rather than supplant Funds otherwise available. 5.2. National Objectives. The Subrecipient certifies that the activities carried out with funds provided under this Agreement will meet the CDBG Program’s National Objective of benefitting low/moderate income persons as defined in 24 CFR, Part 570.208. 5.3 The City’s payment of funds under the CDBG Program is contingent upon the City receiving the intended appropriation from the U.S. Department of Housing and Urban Development (HUD). SECTION 6.GENERAL CONDITIONS 6.1 General Compliance. The Subrecipient agrees to comply with all applicable federal, state, county, and municipal laws, ordinances, resolutions, rules, policies, and regulations ("Laws") governing the Funds provided under this Agreement. 6.2 Independent Contractor. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer and employee between the parties. The Subrecipient shall at all times remain an independent contractor with respect to the services to be performed under this Agreement. The City shall be exempt from payment of all unemployment compensation, FICA, retirement, life and/or medical insurance and workers’ compensation insurance as the Subrecipient is an independent contractor. 6.3 Hold Harmless. The Subrecipient shall hold harmless, defend and indemnify the City from any and all claims, actions, suits, charges and judgments whatsoever that arise outof the Subrecipient’s performance or nonperformance of the Services or subject matter called for in this Agreement. 6.4~ Insurance and Bonding. The Subrecipient, at its sole cost and expense, shall obtain and maintain during the term of this Agreement, insurance-as more fully described in Exhibit C which is incorporated herein by reference and made a part of this Agreement. The Subrecipient shall comply with the bonding and insurance requirements of Attachment B of OMB Circular A-II0~ Bonding and Insurance. 6.5 Grantor Recognition. The Subrecipient shall ensure recognition of the role of the grantor agency in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as 970227 syn 0071149 3 to funding source. In addition, the Subrecipient will include a reference to the support provided herein in all publications made possible with Funds made available under this Agreement. 6.6 Amendments. The parties may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, and signed by their duly authorized representatives. Such amendments shall not invalidate this Agreement, nor relieve or release any party from its obligations under this Agreement. At any time during the term of this Agreement, the City, in its discretion, may amend this Agreement to conform with federal, state or local governmental guidelines, policies and available funding amounts, or for any other reasons. If such amendments result in a change in the funding, the scope of Services, or schedule of, the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by the parties. 6.7 Suspension or Termination. 6.7.1 Either party may terminate this Agreement at any time by giving written notice to the other party of such termination and specifying the effectiv~ date thereof at least 30 days before the effective date of such termination. Partial termination of the scope of Services described in Exhibit "A" may only be undertaken with the prior approval of the City. In the event of any termination for convenience, all finished or unfinished documents, data, .studies, surveys, maps, models, photographs, reports or other material prepared by the Subrecipient under this Agreement shall at the option of the~ City become the property, of the City, and the Subrecipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. 6.7.2 The City may also suspend or terminate this Agreement, in whole or in part, if the Subrecipient materially fails to comply with any covenant, term, condition, or provision of this Agreement, or with any of the rules, regulations or provision referred to herein; and the City may declare the Subrecipient ineligible for any further participation in City contracts, in addition to other remedies as provided by Law. In the event there is probable cause to believe the Subrecipient is in noncompliance with any applicable rules or regulations, the City may withhold up to fifteen percent (15%) of the Funds until such time aS the Subrecipient is found to be in compliance by the City, or is otherwise adjudicated to be in compliance. SECTION 7.ADMINISTRATIVE REQUIREMENTS 7.1 Financial Management. 7.1.1 Accounting Standards. The Subrecipient agrees to comply with Attachment F of OMB Circular A-f10 and agrees to adhere to the accounting principles and procedures required therein, 970227 syn 0071149 4 utilize adequate internal controls and maintain necessary source documentation for all costs incurred. 7.1.2 Cost Principles. The Subrecipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations," or A-21, "Cost Principles for Educational Institutions," as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. 7.2 Documentation and Record-Keeping. 7.2.1 Records to be Maintained. The Subrecipient shall maintain all records required by the federal regu~lations specified in 24 CFR Section 570.506, and that are pertinent to the activities¯ to be funded under this Agreement. Such records shall include, but not limited to: Records providing a full description of each activity undertaken; Co Records demonstrating that each activity undertaken meets a National Objective of the CDBG Program;. Records required tO determine the eligibility of activities;. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; eo Records document±ng compliance with the fair housing and equal opportunity component of the CDBG Program; Financial records as required by 24 CFR Section 570.502, and OMB Circular A-II0; and Other records necessary to document compliance with Subpart K of 24 CFR Part 570. 7.2°2 Retention. The Subrecipient shall retain all records pertinent to expenditures incurred under this Agreement for a period of three (3) years after the termination of all activities funded under this Agreement, or after the resolution of all federal audit findings, whichever occurs later. Records for non-expendable ~property acquired with Funds under this Agreement shall be retain’ed for three (3) years after final disposition of such property. Records for any displaced person must be kept for three (3) years after he or she has received final payment° Notwithstanding the above, if there is ~litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of .the three-year period, then such 970227 syn 0071149 records must be retained until completion of the actions and resolution of all issues, or the expiration of the three-year period, whichever occurs later. 7.2.3 Client Data. The Subrecipient shall maintain client data demonstrating client eligibility for Services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility,. and description of service provided. Such information shall be made available to the City’s monitors or their designees for review upon request. 7.2.4 Disclosure. The Subrecipient understands that client information collected under this Agreement is private and the use or disclosure of such information, when not directly connected with the administration of the City’s or the Subrecipient’s responsibilities with respect to Services provided under this Agreement, is prohibited by the laws of the State of California, unless written consent is obtained from such person receiving the service and, in the case of a minor, that of a responsible parentor guardian. 7.2.5 Property Records. The Subrecipient shall maintain real property inventory records which clearly identify properties purchased, improved or sold. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Section 570.503(b) (8), as applicable. 7.2.6 National Objectives. The Subrecipient agrees to maintain documentation that demonstrates that the activities carried out with Funds provided under this Agreement meet the CDBG Program’s national objective of benefitting low and moderate income persons, as defined in 24 CFR Section 570.208. 7.2.7 Close-Outs. The Subrecipient’s obligation to the City shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to, making final payments, disposing of CDBG Program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and receivable accounts to the City), and determining the custodianship of records. 7.2.8 Audits and Inspections. All of the Suhrecipient’s records with respect to anymatters covered by this Agreement shall be made available to the City, grantor~agency, their designees or the Government of the United States, at any time during normal business hours, as often as the City or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within 30 days after receipt by the Subrecipiento Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. The Subrecipient agrees to have an annual agency audit conducted 970227 svn 0071149 6 in accordance with current City policy concerning the Subrecipient’s audits, and as applicable, OMB Circular A-133. 7.3 Procedures Concerning Reporting and Payments. 7.3.1 Budgets. The Subrecipient shall submit a detailed budget of a form and content prescribed by the City for its approval. The parties may agree to revise the budget from time to time in accordance with existing City policies. 7.3.2 Program Income. The Subrecipient shall report on a monthly basis all program income, as defined at 24 CFR Section 570.500(a),. generated by activities carried out with the Funds made available under this Agreement. The use of program income by the Subrecipient shall .comply with the requirements set forth at 24 CFR Section 570.504. By way of further limitations, the Subrecipient may use such program income during the term of. this Agreement for activities permitted under this Agreement and shall reduce requests for additional Funds by the amount of any such program income balances on hand. All unused program income shall be returned to the City at the end of the term of this Agreement. Any interest earned on cash advances from the United States Treasury is not Program Income and shall be remitted promptly to the City. 7.3.3 Indirect Costs. If indirect costs are charged, the Subrecipient shall develop an indirect cost allocation plan for determining the appropriate City share of administrative costs and shall submit such plan to the City for approval, in a form specified by the City. 7.3.4 Payment Procedures. The City will pay to the Subrecipient Funds available under this Agreement based upon information submitted by the Subrecipient and consistent with any approved budget and City policy concerning payments. With the exception of certain advances, payments will be made for eligible expenses~actually incurred by the Subrecipient, and not to exceed actual cash requirements. Payments will be adjusted by the City in accordance with advance fund and program income balances available inthe Subrecipient accounts. In addition, the City reserves the right to liquidate Funds avail’able under this Agreement for costs incurred by the City on behalf of the Subrecipient. 7.3.5 Progress Reports. The Subrecipient shall submit semi-annual progress reports to the City in the form and content required by the City. Reports.are due for the periods ending December 31 and June 30 within fifteen (15) days following the end ~of ~each period. 7.4 Procurement. 7.4.1 Compliance. The Subrecipient shall comply with current City policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with Funds provided herein. All program assets, including, without, limitation, 970227 syn 0071149 unexpended program income, property, and equipment, shall revert to the City upon termination of this Agreement.. 7.4°2 OMB Standards° The Subrecipient shall procure materials in accordance with the requirements of Attachment O of OMB Circular A-II0, Procurement Standards, and shall subsequently follow Attachment N of OMB Circular A-f10, Property Management Standards, as modified by 24 CFR 470.502(b) (6) covering utilization and disposal of property. 7.4.3 Travel. The Subrecipient shall obtain written approval from the City for any travel outside the metropolitan area with Funds provided under this Agreement. 7.4.4 Relocation. The Subrecipient agrees to comply with (a) the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), and implementing regulations at 49 CFR Part 24 and 24 CFR 570.606(b); (b) the requirements of 24 CFR 570.606(c) governing the Residential Antidisplacement and Relocation Assistance Plan under section 104(d) of the HCD Act;and (c) the requirements in CFR 570.606(d) governing optional relocation policies. The Subrecipient shall provide relocation assistance to persons (families, individuals, businesses, nonprofit organizations and farms) that are displaced as a direct result of. acquisition, rehabilitation, demolition or conversion, for a CDBG-assisted project. The Subrecipient also agrees to comply with applicable City ordinances, resolutions and policies concerning the displacement of persons from~ their residences. SECTION 8. PERSONNEL AND PARTICIPANT CONDITIONS 8.1 Civil Rights. 8.1.1 Compliance. The Subrecipient agrees to comply with all federal, state, and local laws, including, without limitation, Title VI of the Civil Rights Act of 1964, as amended, Title VIII of the Civil Rights Act of 1968, as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974, as amended, Section 504 of the Rehabilitation Act of 1973, the Americanswith Disabilities Act Of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and Executive Order 11246, as amended by Executive Orders 11375 and 12086. 8.1.2 Nondiscrimination, The Subrecipient will not discriminate against any employee or applicant for employment because o~ race, color, creed, religion, ancestry, national origin, sex, disability, or other handicap, age, marital status, family status, or status with regard to public assi~stance. The Subrecipient .will take affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include, but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of 970227 syn 0071149 8 compensation, and selection for training, including apprenticeship. The Subrecipient agrees to post in conspicuous places, .available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provision of this nondiscrimination clause. 8.1.3 Land Covenants. This Agreement is subject to the requirements of Title VI of the Civil Rights Act of 1964, as amended, and 24 CFR Part 570.601 and 602. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, the Subrecipient shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the City and the United States are beneficiaries of and entitled to enforce such covenants. The Subrecipient, in undertaking its obligation to carry out the CDBG Program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate. 8.1.4 Section 504. The Subrecipient agrees to comply with any federal regulations issued pursuant to and in compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 706), as amended, which prohibits discrimination against the disabled ~in any federally assisted program. The City shall provide the Subrecipient with any guidelines necessaryfor compliance with that portion of .the regulations in force during the term of this Agreement. 8.2 Affirmative Action. 8.2.1 Approved Plano The Subrecipient agrees .that it shall be committed to carry out pursuant to the City’s specifications an affirmative action program in keeping with the principles as provided in Executive Order 11246 (September 24, 1965). The City shall provide affirmative action guidelines to the Subrecipient to assist in the formulation of such program. The Subrecipient shall submit a plan for ~an affirmative action program for approval prior to the award of Funds. 8.2.2 Women and Minority Business Enterprises. The. Subrecipient will use its best efforts to afford minority and women-owned business enterprises the maximum practicable opportunity participate in the performance of this Agreement. As used in this Agreement, the term "minority and female business enterprise" means a business at least fifty-one percent (51%) owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish-speaking, Spanish surname or Spanish-heritage Americans, Asian-Americans, and American Indians. The Subrecipient may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. 970227 syn 0071149 9 8.2.3 Access to Records. The Subrecipient shall furnish and cause each of. its sub-subrecipients to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the City, HUD or its agent, or other authorized federal officials for purposes of investigation to ascertain compliance with~rules, regulations and provisions stated herein. 8.2.4 Notifications. The Subrecipient will send to each labor union or representative of workers with"which it may have a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising~ the labor union or worker’s representative of the Subrecipient’s commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 8.2.5 EE0/AA Statement. The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity or Affirmative Action Employer. 8.2.6 Subcontract Provisions. The Subrecipient will include the provisions of Sections 8.1 and 8.2 in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each sub-subrecipient or vendor. 8.3 Employment Restrictions. 8.3.1 Prohibited Activity. The Subrecipient is prohibited from using Funds provided herein or personnel employed in the administration of the CDBG Program for political activities, sectarian or religious activities, or lobbying, political patronage, and nepotism activities. 8.3.2 Labor Standards. The Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act, as amended, the provisions of Contract Work Hours, the Safety Standards Act, the Copeland "Anti- Kickback" Act (40 U.S.C. 276a-276a-5; 40 U.SoC. 327 and 40 U.S.C. 276c and all other applicable Laws .pertaining to labor standards insofar as those acts apply to the performance of this Agreement. The Subrecipient shall maintain documentation which demonstrates compliance with the hour and age requirements of this part. Such documentation shall be made available to the City for reviewupon request. The Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contracts in excess of $2,000 for construction, renovation or repair of any building or work financed, in whole or in part, with assistance provided under this Agreement, shall comply with the federal requirements adopted by the City pertaining to such contracts and with the applicable requirements of the regulations of the i0 Department of Labor, under 29 CFR Parts i, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than those required under the regulations are imposed by state or local laws, nothing hereunder is intended to relieve .the Subrecipient of its obligation, if any, to require payment .of the higher wage. The Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. 8.3.3 ~’Section 3" Clause. Compliance with the provisions of "Section 3" regulations set forth in 24 CFR Part 135, and all applicable rules and orders issued hereunder prior to the execution of this Agreement, shall be a condition of the federal financial assistance provided under this Agreement and binding upon the. City, the Subrecipient and any sub-subrecipient. Failure to fulfill these requirements shall subject the City, the Subrecipient and any sub-subrecipients, their successors and assigns, to those sanctions specified by the agreement through which federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. The Subrecipient further agrees to comply with these "Section 3" requirements and to include the following language in all subcontracts executed.under.this Agreement: "The work to be performed under this agreementis a project assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.SoC. 1701. "Section 3" requires that to the greatest extent feasible opportunities for training and employment be given to low and very low income residents of the project area and contracts for work in connection with the project be awarded to business concerns that provide economic opportunities for low and very low income persons residing in the metropolitan area in which the project is located." The Subrecipient further agrees to ensure that opportunities for training and emp!oyment arising in connection with a housing .rehabilitation (including reduction and 970227 syn 0071149 11 Do abatement of lead-based paint hazards), housing construction, or other public construction project are given to low and very low income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to low and very low income persons within the service area of the project or the neighborhood in which the project is located, and to low and very low income participants in other HUD programs; and award contracts for work undertaken in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or~ other public construction project are given to business concerns that provide economic opportunities for low and very low income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible priority should be given to business concerns which provide economic opportunities to low and very low income residents within the service area ,of the neighborhood in which the project is located, and to low and very low income participants in other HUD programs. The Subrecipient certifies and agrees that no contractual or other legal incapacity exists which would prevent compliance with these requirements. The Subrecipient agrees to send to each labor organization or representative of workers with which it has a collective agreement or other contract or understanding, if any, a notice advising the labor organization or worker’s- representative of its commitments under this "Section 3" clause and shall post cop±es of the notice in conspicuous places available employees and applicants for employment or training. The Subrecipient will include this "Section 3" clause in every Subcontract and will take appropriate action pursuant to the. subcontract upon a finding that the sub-subrecipient is in violation of regulations issued by the grantor agency. The Subrecipient will not subcontract with any sub-subrecipient where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the sub~subrecipient has first provided it with a 970227 syn 0071149 12 preliminary statement of ability to comply with the requirements of these regulations. 8.4 Conduct. 8.4.1 Assignability. The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the City; provided, however, that claims for moneydue or to become due to the Subrecipient from the City under this Agreement may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or ~transfer shall be furnished promptly to the City. 8.4.2 Hatch Act. The Subrecipient agrees that no Funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title 5 of the United States Code. 8.4.3 Conflict of Interest. The Subrecipient agrees to abide by the provisions of 24 CFR Section 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of Services required under this Agreement. The Subrecipient further covenants that in the performance of this Agreement, no person having such a financial interest shall be employed or retained by the Subrecipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent’, consultant, officer, or elected official or appointed official of the City, or of any designated public agencies or subrecipients which are receiving Funds under the CDBG Program. 8.4.4 Subcontracts. The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this Agreement without the written consent of the City prior to the execution of such subcontracts. Do The Subrecipient will monitor all subcontract services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow- up actions taken to correct areas of noncompliance. Co The Subrecipient shall cause all of the provisions of this Agreement in its entirety to be included in and made a part of any subcontract ~executed in the performance of this Agreement. 13 970227 syn 0071149 The Subrecipient shall undertake to ensure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis. Executed copies of all subcontracts shall be forwarded to the City along with documentation concerning the selection process. 8.4.5 Lobbying. The Subrecipient hereby certifies that: No Federal appropriated funds have been pai.d or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or ¯ modification of any Federal contract, grant, loan, or cooperative agreement; If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee.of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; It will require that the language of paragraph (d) of this certification be included in the aware documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly; and d.Lobbying Certification - Paragraph This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 14 section.1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $I0,000 and not more than $I00,000 for each such failure. 8.4.6 Copyrights. If this Agreement results in any copyrightable material, the City or grantor agency, or both, reserves the right to royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work for government purposes. 8.4.7 Religious Organizations. The Subrecipient agrees that Funds provided under this.Agreement will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the federal regulations specified in 24CFR Section 570.200(j). SECTION 9. ENVIRONMENTAL CONDITIONS 9.1 Air and Water. The Subrecipient agrees to comply with the following regulations insofar as they apply to the performance of this Agreement: Clean Air Act, 42 U.S.C. 7401, e__~t s_~.; Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder; U~S. Environmental Protection Agency regulations pursuant to 40 CFR Part 50, as amended. 9.2 Flood Disaster Protection. In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 USC 4001), the Subrecipient shall assure that for activities located in an area identified by FEMA as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes (including rehabilitation). 9.3 Lead-Based Paint. The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 CFR Section 570.608, and 24 CFR Part 35. Such regulations pertain to all HUD-assisted housing and require that all owners, prospective, owners, and’ tenants or properties constructed prior to 1978 be properly noticed that such properties may include lead-based paint. Such notification shall point out the hazards of lead-based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning and the advisability and availability of blood level screening for children under seven. The notice should also point out that if lead-based paint is found on the property, abatement measures may be undertaken. 9.4 Historic Preservation. The Subrecipient agrees to comply with the historic preservation requirements set forth in the 15¸ 970227s~0071149 National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this .Agreement. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a federal, state, or .local historic property list. SECTION I0.SEVERABILITY If any provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. CITY OF PALO ALTO Mayor ATTEST: LA COMIDA. DE CALIFORNIA,INC. City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney ~APPROVED: Assistant City Manager Director of Planning and Community Environment Deputy City Manager, Administrative Services Risk Manager Attachments: 970227 svn 0071149 EXHIBIT "A" EXHIBIT "B" EXHIBIT ’C" 1996-1997 CONTRACT SCOPE OF SERVICES 1996-1997 CONTRACT BUDGET INSURANCE REQUIREMENTS 16 CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) STATE OF CALIFORNIA ) ) COUNTY OF SANTA CLARA) On March 4, 1997 , before me, the undersigned, a notary public in and for said County, personally appeared *~eor_~e S. Wheaton’*********************************~****~****~***** , ~ (or proved to me on the bas~s of satisfactory evidence) to be the person(w) whose name(s@ i~/a~e ~scribed to the within instrument, a~n~ acknowledged to me that s~/they executed the sam~m~e in .h~_~/ h~./thOr authorized capacity(ie~), and that by h~/h~r/thqir signatdre(~) on the instrument .~he person(y), or the entity ’upon behalf of which the person(~ acted, executed the instrument. ¯ WITNESS my hand and official seal. RIEL ’I" BUCI- COMM. NOTARY PUBLIL: CALIFORNIASANTA CLARA COU,~’ .-y 17 EXHIBIT A LA COMIDA DE CALIFORNIA, INC. 1996/97 CONTRACT SCOPE OF SERVICES SERVICES: Subrecipient shall provide noontime prepared meals for seniors 60 years of age or older, Mondays through Fridays at the Palo Alto Senior Center, 540 Bryant Street, Palo Alto. GOALS: Subrecipient shall provide daily congregate meals to older adults in a social, supportive environment which addresses both the nutritional and emotional needs of program participants. The Program will also provide a link between seniors and other social and recreational activities as well as referral to other social service agencies, as appropriate. OBJECTIVES: 1.Provide approximately 130 daily meals (Monday through Friday) to seniors at no cost. A contribution may be requested from participating seniors, but will not be required. Maintain qualified, trained staff to properly administer program and purchase food, prepare and serve meals, and coordinate volunteer services. Continue to collaborate with Santa Clara County, Department of Social Services for the monitoring, assessment and funding of the Nutrition Program. REPORTS: Subrecipient shall Provide an activity report relating to this Scope of Services for the period ending June 30, 1997, within fifteen (15) days after that date. The report shall cover the contract period, and shall be prepared in a form agreed upon by the City and Subrecipient. PROGRAM POSITIONS: The following positions will be assigned to the CDBG activity: Position Title Total Annual % Time Allotted to CDBG Salary Reimbursement Site Manger 15,063 20 %3,016 Cook 11,304 20 %2,261 Kitchen Aide 1 7,210 20%1,442 Kitchen Aide 2 4,807 10%480 Kitchen Aide 3 ~10%~ TOTAL 44,793 7,840 Expenses Description Salaries Benefits Payroll Taxes Insurance Audit/Fiscal Services Rent Utilities Phone Postage Consultants, Staff Development Travel Office Supplies Equipment ..... .............. Maintenance & Repairs Direct Services (food) Program Supplies (dishes, laundry, cleaning) Miscellaneous HUD Approved Indirect Cost Allocation TOTAL EXHIBIT B LA COMIDA DE CALIFORNIA, INC. 1996-1997 CONTRACT BUDGET Total Project Projected Budg_~ $64,847 5,790 3,355 7,416 225 260 235 150 45,825 3,770 -0- $131,873 Contract Budget CDBG Funds $ 7,840 2,285 $10,125 EXHIBIT "C" INSURANCE REQUIREMENTS The policy or policies of insurance maintained by Subrecipient shall provide the following limits and coverages: POLICY MINIMUM LIMITS OF LIABILITY Worker’s Compensation Comprehensive Automobile Liability (including owned, hired, and non-owned automobiles) Statutory $1,000,000 Bodily Injury ea. person $1,000,000 Bodily Injury ea. occurrence $1,000,000 Property Damage ea. occurrence Comprehensive General Liability (including products and completed operations, broad form contractual, and personal injury. $1,000,000 Bodily Injury ea. person, $1,000,000 Bodily Injury ea. occurrence $1,000,000 Bodily Injury aggregate $1,000,000 Property Damage ea. occurrence Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Subrecipient shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Insurance shall be in full force and effect commencing on the first day of the term of this Agreement. Each insurance policy required by this Agreement shall contain the following clauses: ’2. "This insurance shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days written notice has been given to the City by certified mail, return receipt requested." "All rights of subrogation are hereby waived against the City and the members of the City Council and elective or appointive officers or employees, when acting within the scope of their employment or appointment." "The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Subrecipient; products and completed operations of the Subrecipient; premises owned, occupied or used by the Subrecipient; or. automobiles owned, leased, hired or borrowed by the Subrecipient. The. coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees, agents or volunteers." 4 "It is agreed that any insurance maintained by the City of Palo Alto will apply in excess of, and not contribute to, insurance provided by the Subrecipient." "Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers." "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." All insurance coverage required under this Agreement shall be provided through carriers with a Best’s Key Rating Guide rating of A:X or higher that are admitted to do business in the State of California. The certificate(s) of insurance evidencing such coverage shall be completed and executed by an authorized representative of the Company providing insurance, and shall be filed with and approved by the City. c:suz\insure.frm