04-019, Neighborhood Housing Services Silicon Valley
Vy-OI'1
AGREEMENT FOR THE PERFORMANCE OF SERVICES
BY AND BETWEEN
CITY OF CUPERTINO, CALIFORNIA
AND NEIGHBORHOOD HOUSING SERVICES SILICON VALLEY
This agreement for the performance of services ("Agreement") is made and entered into
on this 10th day of Januarv, 2004 ("Effective Date"), by and between Neighborhood
Housing Services Silicon Valley, a California Corporation, with its principal place of
business located at 1156 N. Fourth Street San Jose, CA 95112 ("Contractor"), and the
City of Cupertino, California, a general law municipal corporation, with its principal
place of business located at 10300 Torre Avenue, Cupertino, California 95014 ("City").
City and Contractor may be referred to herein individually as a "Party" or collectively as
the "Parties" or the "Parties to this Agreement."
RECITALS
Whereas:
A. City desires to secure professional servIces more fully described m this
Agreement;
B. Contractor represents that it, and its sub-contractors, if any, have the professional
qualifications, expertise, desire and any licensees) necessary to provide certain
goods and/or required services of the quality and type which meet the City's
requirements; and,
C. The Parties have specified in this Agreement the terms and conditions under
which such services will be provided and paid for.
Contractor and City agree as follows:
AGREEMENT PROVISIONS
1. SERVICES TO BE PROVIDED
City employs Contractor to perforn1 the services ("Services") more fully described in
Exhibit A entitled, "SCOPE OF SERVICES." Exhibit A is attached and incorporated by
this reference. Except as otherwise specified in this Agreement, Contractor shall fumish
all necessary technical and professional services, including labor, material, equipment,
transportation, supervision and expertise to satisfactorily complete the work required by
City at his/her own risk and expense.
2. TERM OF AGREEMENT
Unless this paragraph is subsequently modified by a written amendment to this
Agreement, the term of this Agreement shall begin on the Effective Date and terminate at
the end of day on Dcccmbcr 31, 2001.
a. Commencement of Services
Contractor shall begin perf01ming Services after receiving written notice from the
City to proceed.
b. Completion of Services
Contractor shall complete Services within the time limits set f01ih in the Scope of
Services or as mutually determined in writing by the Parties. When City determines
that Contractor has satisfactorily completed the Services, City shall give Contractor
written Notice of Completion, and Contractor shall not incur any further costs under
this Agreement after receiving such notice.
3. COMPENSATION AND PAYMENT
a. In consideration for Contractor's complete performance of Services, City shall pay
Contractor for all materials provided and services rendered by Contractor at the rate
per hour for labor and cost per unit for materials as outlined in Exhibit B, entitled
"SCHEDULE OF FEES," attached and incorporated by this reference.
b. Contractor will bill City on a monthly basis for Services provided by Contractor
during the preceding month, subject to verification by City. City will pay Contractor
within thirty (30) days of City's receipt of invoice.
4. NO ASSIGNMENT OF AGREEMENT
City and Contractor bind themselves, their successors and assigns to all covenants of this
Agreement. This Agreement shall not be assigned or transferred without the prior written
approval of City.
5. NO THIRD PARTY BENEFICIARY
This Agreement shall not be construed to be an agreement for the benefit of any third
party or pmiies, and no third pmiy or parties shall have any claim or right of action under
this Agreement.
6. INDEPENDENT CONTRACTOR
Contractor and all person(s) employed by or contracted with Contractor to furnish labor
and/or materials under this Agreement are independent contractors and do not act as
agent(s) or employee(s) of City. Contractor has full rights, however, to manage its
employees in their performance of Services under this Agreement. Contractor is not
authorized to bind City to any contracts or other obligations.
7. SUBCONTRACTING
None of the Services under this Agreement shall be performed by subcontractors unless
Contractor specifically identifies subcontractors in writing and City pre-approves such
subcontractors in writing. Contractor shall be as fully responsible to City for the acts and
omissions of its subcontractors, and of persons either directly or indirectly employed by
them, as Contractor is for the acts and omissions of persons directly employed by it.
8. CONTRACTOR ASSIGNED PERSONNEL
Contractor shall designate in writing an individual to have immediate responsibility for
the Services under this Agreement. Key personnel to be assigned by Contractor shall be
stipulated in the Scope of Services. Substitution of any assigned person shall require the
written prior approval of the City, which shall not be unreasonably withheld. If the City
determines that a proposed substitution is not responsible or qualified to perform the
services then, at the request of the City, Contractor shall substitute a qualified and
responsible person.
9. OWNERSHIP OF DOCUMENTS
a. All work products, drawings, data, reports, files, estimates and other infonnation and
materials, with the exception of proprietary computer programs, accumulated by the
Contractor to complete services under this Agreement shall be owned by the City.
b. Contractor shall retain custody of all project data and documents other than
deliverables specified in the Scope of Services, but shall make access thereto
available to the City at all reasonable times the City may request. City may make and
retain copies for infonnation and reference.
10. RECORDS OF LABOR AND COSTS
a. Contractor shall maintain for the Services, records of labor and costs used in claims
for compensation under this Agreement. Records shall mean a contemporaneous
record of time for personnel; a methodology and calculation of the Multiplier for
fringe benefits and indirect costs; and invoices, time sheets, or other factors used as a
basis for determining other nonlabor charges for Services. These records must be
made available to the City upon reasonable notice of no more than 48 hours during
the period of the performance of this Agreement.
b. After delivery of Services (completion of Scope of Services) under this Agreement,
the Contractor's records of all costs used in claim's for compensation under this
Agreement shall be available to City's accountants and auditors for inspection and
verification. These records will be maintained by Contractor and made reasonably
accessible to the City for a period of three (3) years after completion of Scope of
Services under this Agreement.
c. Contractor agrees to cooperate and provide any and all information concerning the
Project costs which are a factor in determining compensation under this ^grccl11cllt us
requested by the City or any public agency which has any part in providing financing
for, or authority over, the Services which are provided under the Agreement.
d. Failure to provide documentation or substantiation of all costs for Services used as a
factor in compensation paid under Provision 3 hereof will be grounds for City to
refuse payment of any statement submitted by the Contractor and for a back charge
for any City funds, including interest from payment; or grant, matching or other funds
from agencies assisting City in financing the Services specified in this Agreement.
11. NONDISCLOSURE OF PROPRIETARY INFORMATION
Contractor shall consider all information provided by City and all drawings, reports,
studies and other documents resulting from the Contractor's performance of the Services
to be proprietary unless such information is available from public sources. Contractor
shall not publish or disclose proprietary infonnation for any purpose other than the
performance of the Services without the prior Written authorization of City or in response
to legal process.
12. USE OF CITY NAME OR EMBLEM
Contractor shall not use City's name, insignia, or emblem, or distribute any information
related to services under this Agreement in any magazine, trade paper, newspaper or
other medium without express written consent of City.
13. AUDITS
City, through its authorized representatives, has the right during the tern1 of this
Agreement, and for three (3) years from the date of final payment for goods and/or
Services provided under this Agreement, to audit the books and records of Contractor
regarding matters covered by this Agreement. Contractor agrees to maintain accurate
books and records in accordance with generally accepted accounting principles. Any
expenses not so recorded shall be disallowed by City. Contractor agrees to help City meet
any reporting requirements with respect to Contractor's Services if requested by City in
writing.
14. QUALIFICATIONS OF CONTRACTOR
Contractor represents that its personnel are qualified to furnish Services of the type and
quality, which City requires. City expressly relies on Contractor's representations
regarding its skills and knowledge. Contractor shall promptly perform all Services
requested by City in a safe manner and in accordance with all federal, state, and local
operation and safety regulations. Contractor shall work closely with and be guided by
City. Contractor shall also perfOlm all work in accordance with generally accepted
business practices and performance standards of the industry.
15. MONITORING OF SERVICES
City may monitor the Services performed under this Agreement to determine whether
Contractor's operation conforms to City policy and to the terms of this Agreement. City
may also monitor the Services to be performed to determine whether financial operations
are conducted in accord with applicable City, county, state, and federal requirements. If
any action of Contractor constitutes a breach, City may temlinate this Agreement
pursuant to the provisions described herein.
16. WARRANTY
Contractor expressly warrants that all materials and services covered by this Agreement
shall be fit for the purpose intended, shall be free from defect, and shall conform to the
specifications, requirements, and instructions upon which this Agreement is based.
Contractor agrees to promptly replace or correct any incomplete, inaccurate, or defective
Services at no further cost to City when defects are due to the negligence, errors or
omissions of Contractor. If Contractor fails to promptly correct or replace materials or
services, City may make corrections or replace materials or services and charge
Contractor for the cost incurred by City.
17. FAIR EMPLOYMENT
Contractor shall not discriminate against any employee or applicant for employment
because of race, color, creed, national origin, sex, age, condition of physical handicap,
religion, ethnic background, or marital status, in violation of state or federal law.
18. CONTRACTOR TO HOLD CITY HARMLESS
To the extent permitted by law, Contractor agrees to indemnify, protect, defend, and hold
harmless City, its City Council, officers, employees, volunteers and agents from and
against any claim, injury, liability, loss, cost, and/or expense or damage, including all
costs and reasonable attorney's fees in providing a defense to any claim, arising from
Contractor's negligent, reckless or wrongful acts, errors, or omissions with respect to or
in any way connected with the performance of the Services by Contractor, its agents,
subcontractors and/or assigns under this Agreement.
19. INSURANCE REQUIREMENTS
During the term of this Agreement, and for any time period set forth in Exhibit C,
Contractor shall purchase and maintain in full force and effect, at no cost to City
insurance policies with respect to employees and vehicles assigned to the Perfonnance of
Services under this Agreement with coverage amounts, required endorsements,
certificates of insurance, and coverage verifications as defined in Exhibit C attached and
incorporated by this reference.
20. AMENDMENTS
This Agreement may be amended only with the written consent of both Parties.
21. INTEGRATED DOCUMENT
This Agreement represents the entire agreement between City and Contractor. No other
understanding, agreements, conversations, or otherwise, with any representative of City
prior to execution of this Agreement shall affect or modify any of the terms or obligations
of this Agreement. Any verbal agreement shall be considered unofficial information and
is not binding upon City.
22. SEVERABILITY CLAUSE
In case anyone or more of the provisions in this Agreement shall, for any reason, be held
invalid, illegal or unenforceable in any respect, it shall not affect the validity of the other
provisions, which shall remain in full force and effect.
23. LAW GOVERNING CONTRACT
This Agreement shall be governed and interpreted usmg the laws of the State of
California.
24. DISPUTE RESOLUTION
a. Any controversies or claims between Contractor and City regarding this Agreement
must first be put in writing and delivered to the other Party. The Parties will meet in
good faith to attempt to resolve the issue in question. If the Pariies fail to come to an
agreement on the resolution of the issue, all required administrative procedures must
be followed. If all administrative procedures are exhausted and the Parties are unable
to resolve the issue, the matter must be submitted to mediation within thirty (30)
calendar days after the written request for mediation is delivered by one Party.
b. The Paliies may agree on one mediator. If they cannot agree on one mediator, the
Party demanding mediation shall request that the Superior Comi of Santa Clara
County appoint a mediator. The mediation meeting shall not exceed one work day
[eight (8) hours]. The Parties may agree to extend the time allowed for mediation
under this Agreement.
c. Mediation under this section is a condition precedent to filing an action in any comi.
In the event litigation or mediation arises out of any dispute related to this
Agreement, the Parties shall each pay their respective attorneys' fees, expert witness
costs and cost of suit, regardless of the outcome of the litigation.
d. Only after both the administrative dispute resolution procedure and the mediation
procedure have failed to resolve a dispute between the Parties may one or both of the
Panics file suit in the appropriate civil court.
25. VENUE
The venue of any suit filed by either Party shall be vested in the state comis of the
County of Santa Clara, or if appropriate, in the United States District Court, Northern
District of California, San Jose, California.
26. ELECTION OF REMEDIES
The pursuit by any Party of any specific remedy shall not exclude any other remedy
available to the Party.
27. CONFLICT OF INTERESTS
This Agreement does not prevent either Party from entering into similar agreements with
other parties. To prevent a conflict of interest, Contractor certifies that to the best of its
knowledge, no City officer, employee or authorized representative has any financial
interest in the business of Contractor and that no person associated with Contractor has
any interest, direct or indirect, which could conflict with the faithful performance of this
Agreement. Contractor is familiar with the provisions of California Government Code
Section 87100 and following, and certifies that it does not know of any facts which would
violate these code provisions. Contractor will advise City if a conflict arises.
28. TERMINATION OF THE AGREEMENT
a. Termination Without Cause
Either Party may tenninate this Agreement without cause by giving the other Party
written notice ("Notice of Termination") which clearly expresses that Pmiy's intent to
terminate the Agreement. Notice of Telmination shall become effective no less than
thirty (30) calendar days after a Party receives such notice. After either Party
terminates the Agreement, Contractor shall discontinue further services as of the
effective date of termination, and City shall pay Contractor for all Services
satisfactorily perfonned up to such date.
b. Termination For Cause
For purposes of this Agreement, the tenn "default" shall mean the failure of any Party
to perform any material obligation in the time and manner provided by this
Agreement. Either Party may tenninate this Agreement in the event of a default by
the other Party by providing a written Notice of Termination to the defaulting Party.
Such Notice of Termination shall become effective no less than ten (10) calendar
days after a Party receives such notice. Such Notice of Termination for cause shall
include a statement by the terminating Party setting forth grounds for determination
of default under the Agreement. In the event this Agreement is terminated for cause
as set forth under this section, City shall pay Contractor for all Services satisfactorily
performed up to the date the Agreement is terminated. City may deduct from such
payment the amount of actual damage, if any, sustained by City due to Contractor's
failure to perform the Services or for breach of this Agreement.
c. Opportunity to Cure Default
Upon receipt of a Notice of Tennination by a Party arising from its default under this
Agreement, the defaulting Party shall have five (5) days from the receipt of such
notice to cure the default by making such payment or perfonning the required
obligation. If the default is cured to the mutual satisfaction of the Parties, the
Agreement shall remain in effect upon written acceptance of the cure by the Party
who issued the Notice of Termination for cause.
29. NOTICES
All notices to the Parties shall, unless otherwise requested in writing, be sent to City
addressed as follows:
City of Cupertino
Community Development Department
Attn: Vera Gil
10300 Torre Avenue
Cupertino, CA 95014
or by facsimile at (408) 777-3333
And to Contract address as follows:
Neighborhood Housing Services Silicon Valley
1156 N. Fourth Street San Jose, CA 95112
or by facsimile at (408) 279-4100
30. COMPLIANCE WITH ETHICAL STANDARDS
Contractor shall:
a. Read Exhibit D, entitled "ETHICAL STANDARDS FOR CONTRACTORS
SEEKING TO ENTER INTO AN AGREEMENT WITH THE CITY OF SANTA
CLARA, CALIFORNIA," attached and incorporated by this reference; and,
b. Execute Exhibit E, entitled "AFFIDAVIT OF COMPLIANCE WITH ETHICAL
STANDARDS" attached and incorporated by this reference.
The Parties acknowledge and accept the terms and conditions of this Agreement as
evidenced by the following signatures of their duly and authorized representatives. It is
the intent ofthc Partics thatlhis Agrccmcnt shal1 becomc operative 011 the Effective Date.
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CITY OF CUPERTINO, CALIFORNIA
a General Law California municipal corporation
By: DQJ~~~
City Manager
ATTEST:
~~
Kimberly SI t
City Clerk
10300 Tone Avenue
Cupertino, California 95014
Telephone: (408) 777-3200
Facsimile: (408) 777-3333
"City"
NEIGHBORHOOD HOUSING SERVICES SILICON VALLEY
a California Corporati
d,
By: . / '1t/v~
E ward Moncrief. . . utive Director if /
1156 N. Fourth Street San Jose, CA 95~
Telephone: (408) 279-2600
Facsimile: (408) 279-4100
"Contractor"
AGREEMENT FOR THE PERFORMANCE OF SERVICES
BY AND BETWEEN
CITY OF CUPERTINO, CALIFORNIA
AND
NEIGHBORHOOD HOUSING SERVICES
EXHIBIT A
The Services to be performed for the City by the Contractor under this Agreement are
more fully described in the following Scope of Services:
SCOPE OF SERVICES
. Provide homebuyer education to residents of Cupertino who are interested in its
Teacher Assistance Program.
. Provide counseling in credit repair and/or budgeting to prospective program
applicants as needed.
. Pre-qualify prospective applicants to determine their purchasing power.
. Implement a process-to be approved by the City of Cupertino-for selecting
those prospective homebuyers who will have access to the Teacher Assistance
Program.
. Support those applicants selected for assistance in all aspects of the
homeownership process as follows:
. Arrange first mortgage financing;
. Structure and process subordinate financing;
. Assist with the real estate sales process;
. Provide support in meeting all conditions precedent to loan
approval and to the closing of escrow on each transaction;
. Administer the homebuyers' signing of City of
Cupertino Teacher Assistance Program Loan Documents.
. Submit timely reports to the City of Cupertino in accordance with City
requirements.
Scope of Services
Exhibit A
Page I of I
AGREEMENT FOR THE PERFORMANCE OF SERVICES
BY AND BETWEEN
CITY OF CUPERTINO, CALIFORNIA
AND
NEIGHBORHOOD HOUSING SERVICES SILICON VALLEY
EXHIBIT B
SCHEDULE OF FEES
In no event shall the amount billed to City by Contractor for Services performed under
this Agreement exceed Twenty Thousand Dollars and No Cents ($20,000.00) dollars,
subject to budget appropriations.
Compensation for Consulting services perfonned under this Agreement shall be
compensated for on a Cost Plus Fixed Fee basis. When using this basis of compensation,
the City agrees to pay Consultant actual costs incurred, subject to an agreed upon Cost
Ceiling, plus a Fixed Professional Fee (Fixed Fee).
For purposes of this Agreement, the actual costs shall include:
Direct Labor Cost
Overhead Cost
Other Direct Costs (Direct Non-salary Costs)
Outside Services
Labor rates shall be based on a normal 8-hour day, 40-hour week, with overtime
paid for authorized work. Technicians, drafters, and support personnel are paid at
one and one-half times their regular rate for overtime. Professional personnel are
paid at their regular rate for overtime. Overhead Cost shall be the sum of Fringe
Benefits and Indirect Costs.
As a portion of the total compensation to be paid to Consultant, City shall pay a
Fixed Professional Fee negotiated for each Task Order as profit for services
rendered by Consultant covered by this Agreement and its Task Orders. The
Fixed Fee may be increased for additional authorized services only by subsequent
task order or amendment changing the scope of services:
Definitions are as follows:
a) Direct labor is salaries and wages paid to personnel for time directly
chargeable to the project. Direct labor does not include the cost of
Consultant's statutory and customary benefits, such as sick leave, holidays,
vacations; and medical and retirement benefits nor the cost of the time of
Schedule of Fees Page] of 2
Exhibit B
executive and administrative personnel and others whose time is not
identifiable to the project.
b) Fringe benefits include Consultant's statutory and customary benefits, such
as sick leave, holidays, vacations, medical and retirement benefits,
incentive pay, tuition, and other costs classified as employee bcudits.
c) Indirect costs are allocations of costs that are not directly chargeable to a
specific engagement and are commonly referred to as Consultant's
overhead. Indirect costs include provisions for such things as clerical
support, office space, light and heat, insurance, statutory and customary
employee benefits, and the time of executive and administrative personnel
and others whose time is not identifiable to the attached Scope of Services.
Under no circumstances can the same labor costs be charged as direct
labor and also appear at the same time as indirect costs, and visa versa.
d) Other (non-labor) direct costs include such typical expenses as cost of
transportation and subsistence, printing and reproduction, computer time
and programming costs, identifiable supplies, and charges by reviewing
authorities.
e) Outside Services shall include all charges from outside consulting firms or
subconsultants.
Reimbursement for mileage shall not exceed the prevailing Internal Revenue Service's
standard mileage rate.
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Schedule of Fees
Page 2 of2
Exhibit B
AGREEMENT FOR THE PERFORMANCE OF SERVICES
BY AND BETWEEN
CITY OF CUPERTINO, CALIFORNIA
AND
NEIGHBORHOOD HOUSING SERVICES SILICON VALLEY
EXHIBIT C
INSURANCE REQUIREMENTS
Contractor shall provide and maintain at all times during the performance of the
Agreement the following insurances:
1. Workers' Compensation and Employer's Liability Insurance for protection of
Contracor's employees as required by law and as will protect Contractor from loss or
damage because of personal injuries, including death, to any of his employees.
2. Comprehensive Automobile Liability Insurance. Contractor agrees to carry a
Comprehensive Automobile Liability Policy providing bodily injury liability. This
policy shall protect Contractor against all liability arising out of the use of owned or
leased automobiles both passenger and commercial. Automobiles, trucks, and other
vehicles and equipment (owned, not owned, or hired, licensed or unlicensed for road
use) shall be covered under this policy. Limits of liability for Comprehensive
Automobile Liability Insurance shall not be less than $1,000,000 Combined Single
Limit.
3. Comprehensive General Liability. Insurance as will protect Contractor and City
from any and all claims for damages or personal injuries, including death, which may
be suffered by persons, or for damages to or destruction to the property of others,
which may arise from the Contractor's operations under this Agreement, which
insurance shall name the City as additional insured. Said insurance shall provide a
minimum of $1 ,000,000 Combined Single Limit coverage for personal injury, bodily
injury, and property damage for each occurrence arid aggregate. Such insurance will
insure Contractor and City from any and all claims arising from the following:
1. Personal injury;
2. Bodily injury;
3. Propel1y damage;
4. Broad form property damage;
5. Independent contractors;
6. Blanket contractual liability.
4. Contractor shall maintain a policy of professional liability insurance, protecting it
against claims arising out of negligent acts, errors, or omissions of Contractor
pursuant to this Agreement, in an amount of not less than $1,000,000. The said
policy shall cover the indemnity provisions under this Agreement.
Standard Insurance Requirements
Page 1 of3
Exhibit C
5. Contractor agrees to maintain such insurance at Contractor's expense in full force and
effect in a company or companies satisfactory to the City. All coverage shall remain
in effect until completion of the Project.
6. Contractor will furnish the City \-\lith ccrtificaks 01 insurance issued by Contractor's
insurance carrier and countersigned by an authorized agent or representative of the
insurance company. The certificates shall show that the insurance will not be
cancelled, altered, or reduced without at least thirty (30) days prior written notice to
the City. The certificates for liability insurance will show that liability assumed under
this Agreement is included.
LIABILITY AND INDEMNIFICATION
7. Having considered the risks and potential liabilities that may exist during the
perfonnance of the Services; and in consideration of the promises included herein,
City and Contractor agree to allocate such liabilities in accordance with this Exhibit.
Words and phrases used in this Exhibit shall be interpreted in accordance with
customary insurance industry usage and practice.
8. Contractor shall indemnify and save harmless and defend the City and all of their
agents, officers, and employees from and against all claims, demand, or cause of
action of every name and nature arising out of negligent error, omission, or act of
Contractor, its agents, servants, or employees in the perfonnance of its services under
this Agreement.
9. In the event an action for damages is filed in which negligence is alleged on the part
of City and Contractor, Contractor agrees to defend City. In the event City accepts
Contractor's defense, City agrees to indemnify and reimburse Contractor on a pro rata
basis for all expenses of defense and any judgment or amount paid by Contractor in
resolution of such claim. Such pro rata share shall be based upon a final judicial
determination of negligence or, in the absence of such determination, by mutual
agreement.
10. Contractor shall indemnify City against legal liability for damages arising out of
claims by Contractor's employees. City shall indemnify Contractor against legal
liability for damages arising out of claims by City's employees.
11. Indemnity provisions will be incorporated into all contractual arrangements entered
into by City for these Services and will protect City and Contractor to the same
extent.
12. Upon completion of all services, obligations and duties provided for in the
Agreement, or in the event of tennination of this Agreement for any reason, the terms
and conditions of this Exhibit shall survive.
Standard Insurance Requirements
Page 2 of3
Exhibit C
13. To the maximum extent permitted by law, Contractor's liability for City's damage will
not exceed the aggregate compensation received by Contractor under this Agreement
or the maximum amount of professional liability insurance required by this
Agreement, which ever is greater.
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Standard Insurance Requirements
Page 3 of3
Exhibit C
AGREEMENT FOR THE PERFORMANCE OF SERVICES
BY AND BETWEEN
CITY OF CUPERTINO, CALIFORNIA
AND
NEIGHBORHOOD HOUSING SERVICES SILICON VALLEY
EXHIBIT D
ETHICAL STANDARDS FOR CONTRACTORS
SEEKING TO ENTER INTO AN AGREEMENT WITH
THE CITY OF SANTA CLARA, CALIFORNIA
Termination of Agreementfor Certain Acts
A. The City may, at its sole discretion, terminate this Agreement in the event anyone
or more of the following occurs:
1. If a Contractor! does any of the following:
a. Is convicted2 of operating a business in violation of any Federal,
State or local law or regulation;
b. Is convicted of a crime punishable as a felony involving
dishonest/ ;
c. Is convicted of an offense involving dishonesty or is convicted of
fraud or a criminal offense in connection with: (1) obtaining; (2)
attempting to obtain; or, (3) perfonning a public contract or
subcontract;
d. Is convicted of any offense which indicates a lack of business
integrity or business honesty which seriously and directly affects
the present responsibility of a City contractor or subcontractor;
and/or,
For purposes of this Agreement, the word "Contractor" (whether a person or a legal entity) means
any of the following: an owner or co-owner of a sole proprietorship; a person who controls or who has the
power to control a business entity; a general partner of a partnership; a principal in a joint venhlre; or a
primary corporate stockholder [i.e., a person who owns more than ten percent (10%) of the outstanding
stock ofa corporation] and who is active in the day to day operations of that corporation.
For purposes of this Agreement, the words "convicted" or "conviction" mean a judgment or
conviction of a criminal offense by any court of competent jurisdiction, whether entered upon a verdict or a
plea, and includes a conviction entered upon a plea of nolo contendere within the past five (5) years.
As used herein, "dishonesty" includes, but is not limited to, embezzlement, theft, forgery, bribery,
falsification or destruction of records, making false statements, failure to pay tax obligations, receiving
stolen property, collusion or conspiracy.
Ethical Standards for Contractors
Page I of2
Exhibit D
e. Made (or makes) any false statement(s) or representation(s) with
respect to this Agreement.
2. If fraudulent, criminal or other seriously improper conduct of any officer,
director, shareholder, partner, employee or other individual associated
with the Contractor can bt: imputed to the Contractor when the conduct
occurred in connection with the individual's performance of duties for or
on behalf of the Contractor, with the Contractor's knowledge, approval or
acquiescence, the Contractor's acceptance of the benefits derived from the
conduct shall be evidence of such knowledge, approval or acquiescence.
B. The City may also terminate this Agreement in the event anyone or more of the
following occurs:
1. The City determines that Contractor no longer has the financial capabilitl
or business experiences to perform the terms of, or operate under, this
Agreement; or,
2. If City detennines that the Contractor fails to submit information, or
submits false information, which is required to perform or be awarded a
contract with City, including, but not limited to, Contractor's failure to
maintain a required State issued license, failure to obtain a City business
license (if applicable) or failure to purchase and maintain bonds and/or
insurance policies required under this Agreement.
C. In the event a prospective Contractor (or bidder) is ruled ineligible (debarred) to
participate in a contract award process or a contract is terminated pursuant to
these provisions, Contractor may appeal the City's action to the City Council by
filing a written request with the City Clerk within ten (10) days of the notice
given by City to have the matter heard. The matter will be heard within thirty (30)
days of the filing of the appeal request with the City Clerk. The Contractor will
have the burden of proof on the appeal. The Contractor shall have the opportunity
to present evidence, both oral and documentary, and argument.
4
Contractor becomes insolvent, transfers assets in fraud of creditors, makes an assignment for the
benefit of creditors, files a petition under any section or chapter of the federal Bankruptcy Code (11
U .S.c.), as amended, or under any similar law or statute of the United States or any state thereof, is
adjudged bankrupt or insolvent in proceedings under such laws, or a receiver or trustee is appointed for all
or substantially all ofthe assets of Contractor.
Loss of per sonne 1 deemed essential by the City for the successful performance ofthe obligations
of the Contractor to the City.
Ethical Standards for Contractors
Page 2 of2
Exhibit D
AGREEMENT FOR THE PERFORMANCE OF SERVICES
BY AND BETWEEN
CITY OF CUPERTINO, CALIFORNIA
AND
NEIGHBORHOOD HOUSING SERVICES
EXHIBIT E
AFFIDAVIT OF COMPLIANCE WITH ETHICAL STANDARDS
[CITY OF CUPERTINO]
I, Edward Moncrief, being first duly sworn, depose and say that I am the Executive
Director of Neighborhood Housing Services Silicon Valley and I hereby state that I have
read and understand the language, entitled "ETHICAL STANDARDS FOR
CONTRACTORS SEEKING TO ENTER INTO AN AGREEMENT WITH THE CITY OF
CUPERTINO, CALIFORNIA" (herein "Ethical Standards") set forth in Exhibit D. I have
authority to make these representations on my own behalf or on behalf of the legal entity
identified herein. I have examined appropriate business records and I have made inquiry
of those individuals potentially included within the definition of "Contractor" contained
in the Ethical Standards.
Based on my review of the appropriate documents and the necessary inquiry responses, I
hereby state that neither the business entity nor any individual(s) belonging to a category
identified in footnote #1 of Exhibit D [i.e., owner or co-owner of a sole proprietorship,
general partner, person who controls or has power to control a business entity, etc.] has
been convicted of anyone or more of the crimes identified in Exhibit D within the past
five (5) years. The above assertions are true and correct and are made under penalty of
perjury under the laws of the State of California.
NOTARY'S ACKNOWLEDGMENT TO BE ATTACHED
Please execute the affidavit and attach a notary public's acknowledgment of execution of
the affidavit by the signatory. If the affidavit is on behalf of a corporation, partnership, or other
legal entity, the entity's complete legal name and the title of the person signing on behalf of the
legal entity shall appear above. Written evidence of the authority of the person executing this
affidavit on behalf of a corporation, partnership, joint venture, or any other legal entity, other than
a sole proprietorship, shall be attached.
Affidavit of Compliance With Ethical Standards
Exhibit E
Page 1 of I