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05-105, Cupertino Community Services AGREEMENT This Agreement is made and entered into this 18th day of August 2005, by and between the CITY of Cupertino, a municipal corporation ("CITY") and Cupertino Community Services, a nonprofit corporation ("CORPORATION"). WITNESSETH WHEREAS, CITY has received Community Development Block Grant (hereinafter "CDBG") funds through an entitlement from the United States Department of Housing and Urban Development (hereinafter known as HUD). WHEREAS, CITY has agreed to allocate a portion of its CDBG funds to CORPORATION as a subrecipient for public service related activities within the CITY which shall primarily benefit very low and low income households. NOW, THEREFORE, the parties agree as follows: I. PROGRAM CITY agrees to allocate to the CORPORATION a sum not to exceed $19,000.00 in funds for the purpose of implementing the housing program ("Program") as more particularly described in Exhibit "A" (Program Description), Exhibit "B" (Project Work Plan) Exhibit "C" (Time Schedule) and Exhibit "D" (Project Budget). II. TERM The term of this Agreement shall begin July 1, 2005 and shall terminate June 30, 2006, or the date of the expenditure of the total grant amount provided for herein, or upon the termination date established pursuant to Section V or Section VII. III. OBLIGATIONS OF CORPORATION A. Organization of CORPORATION. CORPORATION shall: 1. Provide CITY with: a. Its Articles of Incorporation under the laws of the State of California; b. A copy of the current Bylaws of CORPORATION; c. Documentation of its Internal Revenue Service nonprofit status; d. Names and addresses of the current Board of Directors of CORPORATION; and, e. An adopted copy of CORPORATION'S personnel policies, procedures and approved affirmative action plan. 2. Report any changes in CORPORATION'S Articles of Incorporation, Bylaws, Board of Directors, personnel policies and procedures, affirmative action plan, or tax-exempt status immediately to Program Manager. 3. Maintain no member of its Board of Directors as a paid employee, agent or subcontractor under this Agreement. 4. Open to the public all meetings of its Board of Directors, except meetings, or portions thereof, dealing with personnel or litigation matters. 5. Keep minutes of all its regular and special meetings. 6. Comply with all provisions of California Nonprofit CORPORATION Law. B. Program Performance by CORPORATION. CORPORATION shall: 1. Conduct the PROGRAM within the City of Cupertino for the purpose of benefiting very low and low-income households. 2. File quarterly narrative reports with the CITY on the types and numbers of services rendered to Cupertino beneficiaries through the operation of the project, which reports shall evaluate the manner in which the project is achieving its goals. The reports shall be due within ten (10) working days of the end of the calendar year and shall cover the entire year immediately preceding the date on which the report is filed. Said reports shall be made on forms approved by CITY. 3. Coordinate its services with other existing organizations providing similar services in order to foster community cooperation and to avoid unnecessary duplication of services. 4. Seek out and apply for other sources of revenue in support of its operation or services from local, state, federal and private sources and, in the event of such an award, inform CITY within ten days. 5. Notify CITY within ten (10) days of the receipt of any local, state, federal, or private sources of revenue for use in support of this operation or service. 6. Include an-acknowledgment of CITY funding and support where appropriate. C. Fiscal Responsibilities of CORPORATION. CORPORATION shall: 1. Appoint and submit the name of a fiscal agent who shall be responsible for the financial and accounting activities of CORPORATION, including the receipt and disbursement of CORPORATION funds. The CITY shall immediately be notified in writing of the appointment of a new fiscal agent and that agent's name. 2. Establish and maintain an accounting system that shall be in conformance with generally accepted principles of accounting. The accounting system shall be subject to review and approval of CITY. 3. Document all Program costs by maintaining records in accordance with Section III, Paragraph D below. 4. Submit on a quarterly basis, within ten (10) working days of the end of the quarter, a payment request containing a summary statement of proposed expenditures and revenue for the quarter immediately following the date on which the report is filed and cumulative totals from the effective date of this agreement. In addition, the amount of actual expenditures shall be reported to CITY within ten (10) working days of the end of each quarter. Said reports shall be made on forms approved by CITY. 5. Submit to the CITY'S Finance Director an annual audit performed by an independent auditor. 6. Certify insurability subject to CITY approval as outlines in Exhibit "E" (Insurance). 7. If applicable, submit an indirect cost plan to CITY for approval. 8. Items 1 through 7 are express conditions precedent to any CITY funding and failure to comply with these conditions will, at discretion of CITY, result in suspension of funding or termination of this Agreement. 9 . CORPORATION is liable for repayment of all disallowed costs. Disallowed costs may be identified through audits, monitoring or other sources. CORPORATION shall be required to respond to any adverse findings that may lead to disallowed costs. The CITY shall make the final determination of disallowed costs, subject to provisions of OMB Circular A-122, "Cost Principles for Non-Profit Organizations." D. Establishment and Maintenance of Records. CORPORATION shall maintain complete and accurate records of all its transactions including, but not limited to, contracts, invoices, time cards, cash receipts, vouchers, canceled checks, bank statements, client statistical records, personnel, property and all other pertinent records sufficient to reflect properly (1) all direct and indirect costs of whatever nature claimed to have been incurred or anticipated to be incurred to perform this Agreement or to operate the Program, and (2) all other matters covered by this Agreement. E. Preservation of Records. CORPORATION shall preserve and make available its records: 1. Until the expiration of three years from the date of final payment to CORPORATION under this Agreement; or 2. For such longer period, if any, as is required by applicable law; or, 3. If this Agreement is completely or partially terminated, the records relating to the work terminated shall be preserved and made available for a period of three years from the date of termination. F. Examination of Records; Facilities. At any time during normal business hours, and as often as may be deemed necessary, CORPORATION agrees that the CITY'S authorized representative(s) may until expiration of (1) three years after final payment under this Agreement, (2) three years from the date of termination ofthis agreement, or (3) such longer period as may be described by applicable law, have access to and the right to examine its plants, offices and facilities used in the performance of this Agreement or the operation of the Program, and all its records with respect to the Program and all matters covered by this Agreement. CORPORATION also agrees that the CITY'S authorized representative(s) shall have the right to audit, examine, and make excerpts or transactions of and from, such records and to make audits of all contracts and subcontracts, invoices, payrolls, records of personnel, conditions of employment, material and all other data relating to the Program and matters covered by this Agreement. CORPORATION will be notified in advance that an audit will be conducted. CORPORATION will be required to respond to any audit findings, and have the responses included in the final audit report. The cost of any such audit will be borne by CITY. G. Compliance with Law. CORPORATION shall become familiar and comply with and cause all its subcontractors and employees, if any, to become familiar and comply with all applicable federal, state and local laws, ordinances, codes, regulations and decrees including, but not limited to, those federal rules and regulations, executive orders and statutes identified in Exhibit "F" (Assurances). Specifically, CORPORATION shall comply with the requirements and standards of OMB Circular No. A-122, "Cost Principles for Non- Profit Organizations" and the following attachments to OMB Circular No. A-II 0: I. Attachment A, "Cash Depositories, " except for Paragraph 4 concerning deposit msurance; 2. Attachment B, "Bonding and Insurance;" 3. Attachment C, "Retention and Custodial Requirements for Records;" 4. Attachment F, "Standards for Financial Management Systems;" 5. Attachment H, "Monitoring and Reporting Program Performance," paragraph 2; 6. Attachment N, "Property Management Standards," except for paragraph 3 concerning the standards for real property; and 7. Attachment 0, "Procurement Standards." IV . OBLIGATIONS OF CITY A. Method of Payment. During the term of this Agreement, CITY shall reimburse CORPORATION for all allowable costs and expenses incurred in connection with the Program, not to exceed the total sum of Nineteen Thousand Dollars and No Cents ($19,000.00) except that the CITY may, after the corrective action procedure is followed, suspend or terminate payment to CORPORATION, in whole or in part, under this Agreement or not to make any particular payment under this Agreement based on CORPORATION'S noncompliance, including, but not limited to, incomplete documentation of expenses, failure to submit adequate progress reports as required herein or other incidents of noncompliance as described in Section V, Paragraph B, of this Agreement or based on the refusal of CORPORATION to accept any additional conditions that may be imposed by HUD at any time, or based on the suspension or termination of the grant to CITY made pursuant to the Housing and Community Development Act of 1974, as amended. V.CONTRACTCOMPLIANCE A. Monitoring and Evaluation of Services. Evaluation and monitoring of the Program performance shall be the mutual responsibility of both CITY and CORPORATION. CORPORATION shall furnish all data, statements, records, information and reports necessary for Program Manager to monitor, review and evaluate the performance of the Program and its components. CITY shall have the right to request the services of an outside agent to assist in any such evaluation. Such services shall be paid for by CITY. B. Contract Noncompliance. Upon receipt by CITY of any information that evidences a failure by CORPORATION to comply with any provision of this Agreement, CITY shall have the right to require corrective action to enforce compliance with such provision. Areas of noncompliance include but are not limited to: 1. If CORPORATION (with or without knowledge) shall have made any material misrepresentation of any nature with respect to any information or data furnished by CITY in connection with the Program. 2. If there is pending litigation with respect to the performance by CORPORATION of any of its duties or obligations under this Agreement which may materially jeopardize or adversely affect the undertaking of or the carrying out of the Program. 3. If CORPORATION shall have taken any action pertaining to the Program which requires CITY approval without having obtained such approval. 4. If CORPORATION is in default under any provision of this Agreement. 5. If CORPORATION makes improper use of CITY funds. 6. If CORPORATION submits to CITY any report which is incorrect or incomplete in any material respect. C. Corrective Action Procedure. CITY upon occurrence or discovery of noncompliance by CORPORATION under this Agreement, shall give CORPORATION notice of CITY'S intention to demand corrective action to enforce compliance. Such notice shall indicate the nature of the noncompliance and the procedure whereby CORPORATION shall have the opportunity to participate in formulating any corrective action recommendation. CITY shall have the right to require the CORPORATION President and/or Executive Director to appear at a hearing or meeting called for the purpose of corrective action. Thereafter, CITY shall forward to CORPORATION specific corrective action recommendations and a detailed timetable for implementing these recommendations; such timetable shall allow CORPORATION not less than ten (10) nor more than thirty (30) days to comply. Following implementation of the corrective actions, CORPORATION shall forward to CITY, within the time specified by CITY, any documentary evidence required by CITY to verify that the corrective actions have been taken. In the event that CORPORATION does not implement the corrective action recommendations in accordance with the corrective action timetable, CITY may suspend payments hereunder or terminate this Agreement. D. Termination for Cause. Notwithstanding anything to the contrary contained in the foregoing, CITY may terminate this Agreement by written notice to CORPORATION, if any of the events of noncompliance listed in Section V, Paragraph B, occur or are discovered, if CORPORATION does not implement any recommended corrective action, if CORPORATION is in bankruptcy or receivership, if a member of the CORPORATION'S Board of Directors, the Executive Director or other administrative staff person is the subject of investigation for wrongdoing, or if there is reliable evidence that CORPORATION is unable to operate the Program. Termination under this section shall be effective on the date notice of termination is received or such later date as may be specified in the notice. VI. PROGRAM COORDINATION A. CITY: The Senior Planner (Housing Services), or his/her designee, shall be the Program Manager for the CITY and shall monitor progress and performance of this Agreement for CITY. The Program Manager shall be responsible for all services agreed to be performed by CITY. B. CORPORATION: A single Program Director who shall have overall responsibility for the progress and execution of this Agreement shall be assigned. Should circumstances or conditions subsequent to the execution of this Agreement require a substitute or replacement Program Director, CORPORATION shall immediately notify CITY of such occurrence. Program Director and CORPORATION staff will cooperate fully with CITY in fulfillment of this Agreement. C. Correspondence: All correspondence and notices required by this Agreement shall be sent to the parties at the following address: CITY: Senior Planner (Housing Services), Community Development Department, City of Cupertino, 1 0300 Torre Avenue, Cupertino, CA 95014 CORPORATION: Executive Director, 10104 Vista Drive, Cupertino, CA 95014 All notices shall either be hand delivered or sent by United States mail, registered or certified, postage prepaid. Notices given in such a manner shall be deemed received when hand delivered or seventy-two (72) hours after deposit in the United States mail. Any party may change his or her address for the purpose of this section by giving five (5) days written notice of such change to the other party in the manner provided in this section. VII. TERMINATION A. In addition to CITY'S right to terminate for cause set forth in Section V, either CITY or CORPORATION may suspend or terminate this Agreement for any reason by giving thirty (30) days prior written notice to the other party. Upon receipt of such notice, performance of the services hereunder will be immediately discontinued. B. Upon termination, either under this Section VII or Section V, CORPORATION shall: 1. be paid for all documented services actually rendered to CITY to the date of such termination; provided, however, CITY shall be obligated to compensate CORPORATION only for that portion of CORPORATION'S services which are allowable costs and expenses as determined by an audit or other monitoring device; 2. turn over to CITY immediately any and all copies of studies, reports and other data, whether or not completed, prepared by CORPORATION or its subcontractors, if any, in connection with this Agreement. All documents from applicants or regarding applicants shall be treated confidentially. Such materials shall become property of CITY. CORPORATION, however, shall not be liable to CITY'S use of incomplete materials or for CITY'S use of completed documents if used for other than services contemplated by this Agreement; and 3. transfer to the CITY any CDBG funds on hand and any accounts receivable attributable to the use of CDBG funds. All assets acquired with CDBG funds shall be returned to the CITY. C. Upon termination of this Agreement, CORPORATION shall immediately provide CITY access to all documents, records, payroll, minutes of meetings, correspondence and all other data pertaining to the CITY funds granted to CORPORATION pursuant to this Agreement. VIII. PURCHASING REAL OR PERSONAL PROPERTY A. Title to Personal Property. Title to any personal property used in connection with the project shall vest as follows: 1. Personal property donated or purchased with other than CITY funds shall become the property of CORPORATION or person specified by the donor or funding source; otherwise the same shall become the property of CITY except for property and equipment as described in 2. 2. Personal property and equipment permanently affixed to building owned by CORPORATION shall become the property of CORPORATION. 3. All other personal property, supplies and equipment purchased pursuant to this Agreement and not consumed shall become property of CITY. B. Non expendable Property. Non-expendable property purchased by CORPORATION with funds provided by CITY, with a purchase pnce in excess of One Hundred Dollars ($100), must be approved in advance in writing by CITY. CITY shall retain title to said property. If a Program will be continued beyond termination of this Agreement, CITY at its option, may revert title to CORPORATION. C. Purchase of Real Property. None of the funds provided under this Agreement shall be used for the purchase of real property, unless CITY approves such purchase in writing containing any conditions the CITY deems appropriate prior to the time CORPORATION finalizes such purchase. Approval of any such contract or an option to purchase shall be processed through the Program Manager. D. Security Document. As a condition precedent to CITY releasing funds for the purchase of real property or an option to purchase real property, CORPORATION shall prepare and execute a promissory note, deed of trust or other Agreement restricting the use of said real property for purposes consistent with this Agreement, HUD and CDBG requirements. IX. PROGRAM INCOME Income generated by the Program shall be retained by CORPORATION. Such income shall be used to reduce the monthly request for funds under this Agreement and for the same purposes and activities described in Exhibit A. All provisions of this Agreement shall apply to the use of Program income for such activities. X. INDEPENDENT CONTRACTOR This is an Agreement by and between independent contractors and is not intended and shall not be construed to create the relationship of agent, servant, employee, partnership, joint venture or association between CORPORATION and CITY. CORPORATION, including its officers, employees, agents or subcontractors, shall not have any claim under this Agreement or otherwise against CITY for any Social Security, Worker's Compensation, or employee benefits extended to employees of CITY. XI. ASSIGNABILITY A. This Agreement may not be assumed nor assigned to another corporation, person, partnership or any other entity without the prior written approval of CITY. B. None of the work or services to be performed hereunder shall be assigned, delegated or subcontracted to third parties without the prior written approval of CITY. Copies of all third party contracts shall be submitted to CITY at least thirty (30) days prior to the proposed effective date. In the event CITY approves any such assignment, delegation or subcontract, the subcontractors, assignees or delegates shall be deemed to be employees of CORPORATION, and CORPORATION shall be responsible for their performance and any liabilities attaching to their actions or omissions. XII. DISCLOSURE OF CONFIDENTIAL CLIENT INFORMATION CITY and CORPORATION agree to maintain the confidentiality of any information regarding applicants for services offered by the Program pursuant to this Agreement or their immediate families which may be obtained through application forms, questionnaires, interviews, tests, reports from public agencies or counselors, or any other source. Without the written permission of the applicant, such information shall be divulged only as necessary for purposes related to the performance or evaluation of the services and work to be provided pursuant to this Agreement, and then only to persons having responsibilities under this Agreement, including those furnishing services under the Program through approved subcontracts. XIII. HOLD HARMLESS CORPORATION shall indemnify and hold CITY, its officers, employees and elected officials, boards and commissions, harmless with respect to any damages, including attorney's fees and court costs, arising from: A. the failure of the Program to comply with applicable laws, ordinances, codes, regulations and decrees; or, B. any negligence or omiSSiOn ansmg out of any work or services provided by CORPORATION, its officers, employees, agents or subcontractors under the Program or this Agreement. XIV. WAIVER OF RIGHTS AND REMEDIES In no event shall any payment by CITY constitute or be construed to be a waiver by CITY of any breach of the covenants or conditions of this agreement or any default which may then exist on the part of CORPORATION, and the making of any such payment while any such breach or default shall exist shall in no way impair or prejudice any right or remedy available to CITY with respect to such breach or default. In no event shall payment to CORPORATION by CITY in any way constitute a waiver by CITY of its rights to recover from CORPORATION the amount of money paid to CORPORATION on any item which is not eligible for payment under the Program or this Agreement. XV. NONDISCRIMINATION In connection with the performance of this Agreement, CORPORATION assures that no person shall be subject to discrimination because of sex, race, religion, ethnic background, sexual preference, age, handicapped status or union activity. XVI. AMENDMENTS Amendments to the terms or conditions of this Agreement shall be requested in writing by the party desiring such amendment, and any such amendment shall be effective only upon the mutual Agreement in writing ofthe parties hereto. XVII. INTEGRATED DOCUMENT This Agreement contains the entire Agreement between CITY and CORPORATION with respect to the subject matter hereof. No written or oral Agreements with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. XVIII. MISCELLANEOUS A. The captions of this Agreement are for convenience of reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Agreement. B. All exhibits attached hereto and referred to in this Agreement are incorporated herein by this reference as if set forth fully herein. This AGREEMENT, consisting of eleven (11) pages, contains the entire agreement between CITY and CORPORATION respecting the allocation of CDBG funds for the provision of housing services. :t*-' CORPORATION has executed this Agreement in triplicate on this ;;fj day of August, 2005. //" /-- / / Brs By. PRESIDENT Board of Directors CITY has executed this Agreement in triplicate on this . a id W. Knapp City Manager Attested By: Approved as to form: EXHIBIT A PROJECT PROPOSAL COVER SHEET Name of Applicant: Cu ertino Communit Contact Person: J ac ue Care Address: 10104 Vista Drive Telephone number: 408-255-8033 Services Title: Housin Director City: Cu ertino Fax Number: 408-366-6090 Program Year: 2005-2006 Project # (For Office Use Only) State: CA Zip Code: 95014 E-mail Address: CCS@CU ertinocommunit services.or Name of Project/Program: Comprehensive Assistance Program Project/Program Location: 10104 Vista Drive, Cupertino Project Type: D Single Family D Homeownership D New Construction D Mixed Use D Multifamily D Rental D Rehabilitation X Public Service Project Description: Please describe the project with as many details as possible. Include general information, such as the number of units, number of Cupertino residents that will be served, services that will be provided, etc. In fiscal year 2005-2006, Cupertino Community Services' Comprehensive Assistance Program (CAP) will serve over 3,000 extremely-low to low-income residents and homeless people from West Valley area, including Cupertino, West San Jose, surrounding areas, De Anza college students, and families in the Cupertino School District. The CAP Food Pantry, staffed by community volunteers, will distribute over 150,000 pounds offood to 3,000 very-low and low-income individuals. Clients can visit the food pantry on a weekly basis. Services are tracked in a central database. Food sources include Second Harvest Food Bank, USDAfood program, community food drives and local groceries stores. CAP also solicits from the community and distributes special need items such as fresh vegetables and holiday food baskets. Vouchers are available for dietary and ethnic specific needs. Additionally, we will utilize volunteer resources to increase food pantry operating hours-from 5 hours to 6 hours every day. The CAP Clothing Closet will provide used clothing and household items to 1,500 clients at no cost. The clothing closet will also have areas for career clothes to serve individuals who are working or seeking employment. Additionally, a special area will be dedicated to mothers and infants including baby food, diapers, and clothing. Vouchers to the Salvation Army Thrift Store will be issued for items not available in our Clothing Closet. The CAP Emergency Cash Assistance service will provide over $100,000 in direct assistance and vouchers for rental assistance, deposits, utilities payments, clothing, medical expenses, hotel/motel and transportation to 400 households. CCS administers funds provided by United Way Emergency Assistance Network, PG&E Reach, Northern California Grantmakers, FEMA, EHAP, The Salvation Army, St. Joseph's Catholic Church Outreach Fund, Assistance League and the Housing Industry Foundation. Case managers work closely with individuals and families to determine qualifications, needs and capabilities to stabilize. Cash assistance is not for on going support but to help people who face unexpected financial setbacks. The one-time financial assistance prevents the destabilization of individuals and households with critical needs. In addition to meeting the basic physical needs of our clients, CCS also offers a variety of unique holiday EXHIBIT A programs. During the December holidays, CAP Adopt-a-Family program channels the generosity of the community to those in need. Staff matches families who have little with which to celebrate the holidays, to those who want to share what they have with others. Other seasonal programs include back to school shopping spree, summer camps, and backpack giveaway programs. Over $100,000 of in-kind gifts will be leveraged to benefit participants. All ofCCS' services and outreach efforts are available in English, Spanish, Vietnamese, Chinese and Russian. CCS continues to recruit linguistically diverse staff and volunteers to ensure our accessibility to the diverse population that we serve. &Lhl.\ EXHIBIT B CITY OF CUPERTINO PROJECT WORK PLAN FY 2005/2006 AGENCY NAME Cupertino Community Services DA TE PREPARED August 18th. 2005 PROJECT NAME Comprehensive Assistance Program Specific Activities Products or Milestones to be accomplished Benchmarks or Beneficiaries (Use Specific Numerical Data When Possible) For Each Quarter Quantify When Possible 1st 2nd 3rd 4th TOTAL . Provide ongoing support through . 3,000 individuals annually. 750 750 750 750 3,000 a food pantry, clothing closet and seasonal programs. . 150,000 pounds of food will be 37,500 37,500 37,500 37,500 150,000 . Provide vouchers for distributed transportation, clothing, medical needs, baby & new mother needs. . $100,000 direct assistance cash $25,000 $25,000 $25,000 $25,000 $100,000 . Provide emergency cash and vouchers will be distributed assistance to decrease eviction, utility shut-offs, and unmet medical needs. . 400 households will receive 100 100 100 100 400 emergency vouchers or cash . Provide a variety of volunteer assistance. opportunities for the community. ~ .1 EXHIBIT C Proposed Implementation Time Schedule Fiscal Year 2005-2006 Agency Name: Cupertino Community Services Date: Au,!Ust 18th. 200, Project Name: Comprehensive Assistance Pro2:ram Provide ongoing support through a food pantry, X X X X X X X X X X X X clothin closet and seasonal ro rams. Provide vouchers for transportation, clothing, X X X X X X X X X X X X medical needs, bab & new mother needs. Provide emergency cash assistance to decrease X X X X X X X X X X X X eviction, utilit shut-offs, and unmet medical needs. Provide a variety of volunteer opportunities for the X X X X X X X X X X X X communit , f'.I_.~, 1 ~ ;. 1,. EXHIBIT D BUDGET For Grant Amount FY 2005/2006 Agency Name: Project Name: Cupertino Community Services Comprehensive Assistance Program Date Prepared: August 18th, 2005 CATEGORY BUDGET FOR YEAR SALARIES: Personnel 19,000 Benefits OFFICE EXPENSE: Rent Telephone/Fax Printing Travel Utilities Office Supplies Postage Equipment Maintenance /Repair PROJECT EXPENSES: Accounting Services Auditing Fees Insurance Davis Bacon Compliance PROJECT CONSTRUCTION: Appraisal Engineering Services Architectural/Design Acquisition TOT AL: 19,000 EXHIBIT E BASIC INSURANCE AND BOND REQUIREMENTS FOR NON-PROFIT CONTRACTS Definition of Contractor: The "Contractor" as the word is used herein is the party contracting with the City of Cupertino for the direct distribution of CDBG funds. If your organization will be contracting for construction work (such as general contractors building rental apartments) to undertake a Program (as defined in this Non-Profit/City Contract) then the requirements set forth herein shall be complied with by the party contracted with for construction work protecting both the non-profit and the City. Indemnity The Contractor shall indemnify, defend, and hold harmless the City of Santa Clara (hereinafter "City"), its officers, agents and employees from any loss, liability, claim, injury or damage arising out of, or in connection with performance of this Contract by Contractor and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused solely by the acts or omissions of personnel employed by the City. It is the intent of the parties to this Contract to provide the broadest possible coverage for the City. The Contractor shall reimburse the City for all costs, attorneys' fees, expenses and liabilities incurred with respect to any litigation in which the Contractor is obligated to indemnify, defend and hold harmless the City under this Contract. Insurance Without limiting the Contractor's indemnification of the City, the Contractor shall provide and maintain at its own expense, during the term of this Contract, or as may be further required herein, the following insurance coverages and provisions: A. Evidence of Coverage Prior to commencement of this Contract, the Contractor shall provide on the City's own form or a form approved by the City's Insurance Manager an original plus one copy of a Certificate of Insurance certifying that coverage as required herein has been obtained and remains in force for the period required by this Contract. The contract number and project name must be stated on the Certificate of Insurance. The City's Special Endorsement form shall accompany the certificate. Individual endorsements executed by the insurance carrier may be substituted for the City's Special Endorsement form if they provide the coverage as required. In addition, a certified copy of the policy or policies shall be provided by the Contractor upon request. This verification of coverage shall be sent to the address as shown on the City's Certificate of Insurance form and to the Housing and Community Development Program at the address set forth in this Contract at Section VI. PROGRAM COORDINATION, Paragraph c., NOTICES. The Contractor shall not issue a Notice to Proceed with the work under this Contract until it has obtained all insurance required and such insurance has been approved by the City. This approval of insurance shall neither relieve nor decrease the liability of the Contractor. EXHIBIT E - NON-PROFITS 1 REVISED 6/8/95 B. Notice of Cancellation of Reduction of Coverage All policies shall contain a special provision for thirty (30) days prior written notice of any cancellation or reduction in coverage to be sent to the Community Development Department, 10300 Torre Avenue, Cupertino, CA 95014. C. Oualifving Insurers All policies shall be issued by companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII, according to the current Best's Key Rating Guide, unless otherwise approved by the City's Insurance Manager. D. Insurance Required 1. Comprehensive General Liability Insurance - for bodily injury (including death) and property damage which provides limits of not less than one million dollars ($1,000,000) combined single limit (CSL) per occurrence. OR 2. Commercial General Liability Insurance - for bodily injury (including death) and property damage which provides limits as follows: a. General limit per occurrence - $1,000,000 b. General limit aggregate - $2,000,000 c. Products/Completed Operations- $1,000,000 aggregate d. Personal Injury limit - $1,000,000 If coverage is provided under a Commercial General Liability Insurance form, the carrier shall provide the City Insurance Manager with a quarterly report of the amount of aggregate limits expended to that date. If over 50% of the aggregate limits have been paid or reserved, the City may require additional coverage to be purchased by the Contractor to restore the required limits. 3. For either type of insurance, coverage shall include: a. Premises and Operations b. Products/Completed Operations with limits of one million dollars ($1,000,000) per occurrence/ aggregate to be maintained for two (2) years following acceptance of the work by the City. EXHIBIT E - NON-PROFITS 2 REVISED 6/8/95 c. Contractual Liability expressly including liability assumed under this Contract. d. Personal Injury liability. e. Independent Contractors' (Protective) liability. f. Severability of Interest clause providing that the coverage applies separately to each insured except with respect to the limits of liability. 4. For either type of insurance, coverage shall include the following endorsements, copies of which shall be provided to the City: a. Additional Insured Endorsement: Such insurance as is afforded by this policy shall also apply to the City of Cupertino, and members of the City Council, and the officers, agents and employees of the City of Cupertino, individually and collectively, as additional insureds. b. Primary Insurance Endorsement: Such insurance as is afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by the City of Cupertino, its officers, agents, and employees shall be excess only and not contributing with insurance provided under this policy. c. Notice of Cancellation or Change of Coverage Endorsement: This policy may not be cancelled nor the coverage reduced by the Company without 30 days prior written notice of such cancellation or reduction in coverage to the City of Cupertino at the address shown on the Certificate of Insurance. d. Contractual Liability Endorsement: This policy shall apply to liability assumed by the insured under written contract with the City of Cupertino. e. Personal Injury Endorsement: The provisions of this policy shall provide Personal Injury coverage. f. Severability of Interest Endorsement: EXHIBIT E - NON-PROFITS 3 REVISED 6/8/95 The insurance afforded by this policy shall apply separately to each insured that is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the Company's limit of liability. 5. Comprehensive Automobile Liability Insurance for bodily injury (including death) and property damage which provides total limits of not less than one million dollars ($1,000,000) combined single limit per occurrence applicable to all owned, non-owned and hired vehicles. 6. Worker's Compensation and Emplover's Liability Insurance for: a. Statutory California Workers' Compensation coverage including a broad form all- states endorsement. b. Employer's Liability coverage for not less than one million dollars ($1,000,000) per occurrence for all employees engaged in services or operations under this Contract. c. Inclusion of the City and its governing board(s), officers, representatives, agents, and employees as additional insureds, or a waiver of subrogation. 7. Professional Errors and Omissions Liabilitv Insurance This type of insurance should be provided by persons/entities you contract with to provide you with professional services. a. Limits of not less than one million dollars ($1,000,000). b. If this policy contains a self retention limit, it shall not be greater than ten thousand dollars ($10,000) per occurrence/event. c. This coverage shall be maintained for a minimum of two (2) years following termination of this Contract. The City must first approve any exceptions to the above requirements. 8. Bond Requirements Fidelity Bond - Before recelvmg compensation under this Contract, Contractor will furnish City with evidence that all officials, employees, and agents handling or having access to funds received or disbursed under this Contract, or authorized to sign or countersign checks, are covered by a BLANKET FIDELITY BOND in an amount of AT LEAST fifteen percent (15%) of the maximum financial obligation of the City cited herein. If such bond is cancelled or reduced, Contractor will notify City immediately, and City may withhold further payment to Contractor until proper coverage has been EXHIBIT E - NON-PROFITS 4 REVISED 6/8/95 obtained. Failure to give such notice may be cause for termination of this Contract, at the option of the City. 9. Special Provisions The following provisions shall apply to this Contract: a. The foregoing requirements as to the types and limits of insurance coverage to be maintained by the Contractor and any approval of said insurance by the City or its insurance consultant(s) are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to this Contract, including but not limited to the provisions concerning indemnification. b. The City acknowledges that some insurance requirements contained in this Contract may be fulfilled by self-insurance on the part of the Contractor. However, this shall not in any way limit liabilities assumed by the Contractor under this Contract. The City shall approve any self-insurance in writing. c. The City reserves the right to withhold payments to the Contractor in the event of material noncompliance with the insurance requirements outlined above. d. If the Contractor fails to maintain such insurance as is called for herein, the City must order the Contractor to immediately suspend work at Contractor's expense until a new policy of insurance is in effect. EXHIBIT E - NON-PROFITS 5 REVISED 6/8/95 ADDENDUM TO EXHIBIT "E" BASIC INSURANCE AND BOND REQUIREMENTS FOR CONSTRUCTION PROJECTS USING CITY FUNDS If your organization will be contracting for construction work (such as general contractors building rental apartments) to undertake a Program (as defined in this Non-Profit/City Contract) then the requirements set forth in this Addendum to Exhibit "E" shall be complied with by the party contracted with for construction work protecting both the non-profit and the City. Indemnity The General Contractor (hereinafter referred to as "General") shall indemnify, defend, and hold harmless the City of Cupertino (hereinafter "City"), its officers, agents and employees, and the Contractor, it's officers, agents and employees from any loss, liability, claim, injury or damage arising out of, or in connection with performance of this Contract by General and/or its agents, employees or subcontractors, excepting only loss, injury or damage caused solely by the acts or omissions of personnel employed by the City or the Contractor. It is the intent of the parties to this Contract to provide the broadest possible coverage for the City and the Contractor. The General shall reimburse the City and the Contractor for all costs, attorneys' fees, expenses and liabilities incurred with respect to any litigation in which the General is obligated to indemnify, defend and hold harmless the City and the Contractor under this Contract. Insurance Without limiting the General's indemnification of the City and the Contractor, the General shall provide and maintain at its own expense, during the term of this Contract, or as may be further required herein, the following insurance coverages and provisions: A. Evidence of Coverage Prior to commencement of this Contract, the General shall provide an original plus one copy of a Certificate of Insurance certifying that coverage as required herein has been obtained and remains in force for the period required by this Contract. The contract number and project name must be stated on the Certificate of Insurance. Individual endorsements executed by the insurance carrier shall accompany the Certificate. This verification of coverage shall be sent to the Contractor at the address stated below and to the Community Development Department, 10300 Torre Avenue, Cupertino, CA 95014. The Contractor shall not issue a Notice to Proceed with the work under this Contract until it has obtained all insurance required and such insurance has been approved by the Contractor and final approval by the City. This approval of insurance shall neither relieve nor decrease the liability of the Contractor. B. Notice of Cancellation or Reduction of Coverage EXHIBIT E - NON-PROFITS 6 REVISED 6/8/95 All policies shall contain a special provision for thirty (30) days prior written notice of any cancellation or reduction in coverage to be sent to the Community Development Department as stated above, and the Contractor at the following address: Cupertino Community Services Contractor's Name 10104 Vista Drive Street Address Cupertino. CA 95014 City, State, Zip C. Qualifving Insurers 1. All policies shall be issued by companies which hold a current policy holder's alphabetic and financial size category rating of not less than A Vill, according to the current Best's Key Rating Guide, unless otherwise approved by the City. 2. Surety coverage (including bid, performance and payment bonds) shall be required as follows: a. For projects in excess of $100,000: 1. Either a California Admitted Surety OR a current Treasury Listed Surety (Federal Register); and either a current A.M. Best A IV rated Surety OR a current Standard and Poors (S&P) rating of A; 2. An admitted surety insurer which complies with the provisions of the Code of Civil Procedure, Section 995.660*; OR 3. In lieu of 1 & 2, a company of equal financial size and stability that is approved by the City's InsuranceIRisk Manager. b. For projects between $25,000 and not exceeding $100,000: 1. A California Admitted Surety and either a current A.M. Best B rated Surety OR a current Standard and Poors (S&P) rating of B B; OR 2. An admitted surety insurer which complies with the provisions of the Code of Civil Procedure, Section 995.660*; * California Code of Civil Procedure Section 995.660 in summary, states that an admitted surety must provide: 1) the original, or a certified copy of instrument authorizing the person who executed the bond to do so; 2) a certified copy of the Certificate of Authority issued by the Insurance Commissioner; 3) a certificate from City Clerk of Santa Clara City that Certificate of Authority has not been surrendered, revoked, canceled, annulled or suspended; 4) a financial statement showing the assets and liabilities of the EXHIBIT E - NON-PROFITS 7 REVISED 6/8/95 OR 3. In lieu of 1 & 2, a company of equal financial size and stability that is approved by the City's InsuranceIRisk Manager. D. Insurance Required 1. Comprehensive General Liability Insurance - for bodily injury (including death) and property damage which provides limits of not less than one million dollars ($1,000,000) combined single limit (CSL) per occurrence. OR 2. Commercial General Liability Insurance - for bodily injury (including death) and property damage which provides limits as follows: a. General limit per occurrence - $1,000,000 b. General limit aggregate - $2,000,000 c. Products/Completed Operations- $1,000,000 aggregate d. Personal Injury limit - $1,000,000 If coverage is provided under a Commercial General Liability Insurance form, the carrier shall provide the City Insurance Manager with a quarterly report of the amount of aggregate limits expended to that date. If over 50% of the aggregate limits have been paid or reserved, the City may require additional coverage to be purchased by the General to restore the required limits. 3. For either type of insurance, coverage shall include: a. Premises and Operations b. Products/Completed Operations with limits of one million dollars ($1,000,000) per occurrence/aggregate to be maintained for two (2) years following acceptance of the work by the City. c. Contractual Liability expressly including liability assumed under this Contract. d. Personal Injury liability. e. Independent Contractors' (Protective) liability insurer at the end of the quarter calendar year, prior to 30 days next preceding the date of the execution of the bond. EXHIBIT E - NON-PROFITS 8 REVISED 6/8/95 f. Severability of Interest clause providing that the coverage applies separately to each insured except with respect to the limits of liability. 4. For either type of insurance, coverage shall include the following endorsements, copies of which shall be provided to the City and the Contractor: a. Additional Insured Endorsement: Insurance afforded by this policy shall also apply to the City of Cupertino and Contractor as additional insureds. b. Primary Insurance Endorsement: Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by the City of Cupertino and the Contractor shall be excess only and not contributing with insurance provided under this policy. c. Notice of Cancellation or Change of Coverage Endorsement: This policy may not be canceled nor the coverage reduced by the Company without 30 days prior written notice of such cancellation or reduction in coverage to the City of Cupertino CDBG Program, and the Contractor at the addresses set forth on page 10 of this Addendum. d. Severability of Interest Endorsement: The insurance afforded by this policy shall apply separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the Company's limit of liability. 5. Comprehensive Automobile Liability Insurance for bodily injury (including death) and property damage which provides total limits of not less than one million dollars ($1,000,000) combined single limit per occurrence applicable to all owned, non-owned and hired vehicles. 6. Worker's Compensation and EmQloyer's Liabilitv Insurance for: a. Statutory California Workers' Compensation coverage including a broad form all- states endorsement. b. Employer's Liability coverage for not less than one million dollars ($1,000,000) per occurrence for all employees engaged in services or operations under this Contract. EXHIBIT E - NON-PROFITS 9 REVISED 6/8/95 7. Work and Materials Insurance (including but not limited to Builder's Risk, Course of Construction, Installation Floater or similar first party property insurance for covering the interest of the Contractor and the City) shall be provided by the Contractor. The Contractor's coverage shall provide the following: a. Coverage shall be provided on an "all-risk" basis. b. Coverage shall be provided on the work and materials which are the subject of this Contract, whether in process or manufacture or finished, including "in transit" coverage to the final agreed upon destination of delivery, and including loading and unloading operations, and such coverage shall be in force until the work and materials are accepted by the City. c. City and non-profit shall be named as additional insured as its interests may appear at the time of loss. d. Coverage shall be in an amount no less than the full replacement value of the property at the time of loss. e. The deductible shall not exceed $1,000 per occurrence unless otherwise approved by the City and shall be borne by the Contractor. f. If the construction contractor fails to maintain such insurance as is called for herein, the City shall have cause to terminate this Contract in accordance with Section V, paragraph B. 8. Bond Requirements The following bond requirements apply: a. Contract Bonds - Prior to execution of the Contract, Contractor shall file with the City on the approved forms, the two surety bonds in the amounts and for the purposes noted below, duly executed by a reputable surety company satisfactory to City, and Contractor shall pay all premiums and costs thereof and incidental thereto. Both Contractor and the sureties shall sign each bond. b. The "payment bond for public works" shall be in an amount of one hundred percent (100%) of the Contract price, as determined from the prices in the bid form, and shall insure to the benefit of persons performing labor or furnishing materials in connection with the work of the proposed Contract. This bond shall be maintained in full force and effect until all work under the Contract is completed and accepted by the City, and until all claims for materials and labor have been paid. EXHIBIT E - NON-PROFITS 10 REVISED 6/8/95 c. The "performance bond" shall be in an amount of one hundred percent (100%) of the Contract price as determined from the prices in the bid form. and shall insure the faithful performance by Contractor of all work under the Contract. It shall also insure the replacing of, or making acceptable, any defective materials or faulty workmanship. Should any surety or sureties be deemed unsatisfactory at any time by the City notice will be given Contractor to that effect, and Contractor shall forthwith substitute a new surety or sureties satisfactory to the City. No further payment shall be deemed due or will be made under the Contract until the new sureties qualify and are accepted by the City. All alterations, time extensions, extra and additional work, and other changes authorized by the Specifications, or any part of the Contract, may be made without securing consent of the surety or sureties on the contract bonds. 9. Special Provisions The following provisions shall apply to this Contract: a. The foregoing requirements as to the types and limits of insurance coverage to be maintained by the General and any approval of said insurance by the City or the Contractor are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the General pursuant to this Contract, including but not limited to the provisions concerning indemnification. b. The Contractor reserves the right to withhold payments to the General in the event of material noncompliance with the insurance requirements outlined above. c. The Contractor shall notify the City Community Development Department promptly of all losses or claims over $25,000 resulting from work performed under this contract, or any products/completed operations loss or claim against the contractor resulting from any of the contractor's work. EXHIBIT E - NON-PROFITS 11 REVISED 6/8/95