Crescent City City Council
August 18, 2025

This Second-Tier Subaward Agreement (“Second-Tier Subaward”) is entered into by and between the County of Del Norte as the Subrecipient (“County” or “Subrecipient”); City of Crescent City as the Participating Agency (“Participating Agency”), for the Participating Agency to perform the work set forth in this Second-Tier Subaward. The County, and Participating Agency are collectively referred to herein as the “Parties.”

RECITALS
Whereas, the County and California Office of Emergency Services (“Cal OES”) entered a Grant Subaward Agreement (“Grant Subaward”) for Cal OES Program Homeland Security Grant Program (ALN #97.067 & FAIN # EMW-2024-SS-05088) (“Program”).

Whereas, the County is the organization identified as the Subrecipient on the Grant Subaward Face Sheet (Cal OES Form 2-101) for the Program that receives the Grant Subaward funds; Whereas, the County is authorized to enter into a second-tier subaward with one or more participating agencies to assist with the implementation of the Grant Subaward and to accomplish the goals and objectives thereof;
Whereas, the County, and Participating Agency desire to enter this Second-Tier Subaward to set forth the roles and responsibilities of the Parties, including, but not limited to the Participating Agency’s role in assisting with the implementation of the Grant Subaward; and NOW, THEREFORE, for the consideration set forth herein, the Parties mutually agree as follows:

AGREEMENT

1. Titles and Contact Information. The titles and contact information for the individuals that will serve as the primary contacts for this Second-Tier Subaward are as follows:

County/Subrecipient: Neal Lopez
981 H St Suite 210
Crescent City, CA 95531
707.464.7214 [email protected]
Participating Agency: Eric Wier
City of Crescent City
377 J Street
Crescent City, CA 95531
707-464-7483 [email protected]

2. Term. The term of this Second-Tier Subaward shall commence on August 26, 2025 and shall expire on March 31, 2027. The Parties may agree to extend the term by mutual written agreement.

3. Roles and Responsibilities. The roles and responsibilities of the parties shall include, but are not specifically limited to the following:
a. County shall be responsible for:

i) Reimbursing Participating Agency for the purchase of one (1) Multi-Gas Detector for Crescent City Fire and Rescue not to exceed Four Thousand Five Hundred Dollars ($4,500.00).
ii) Reimbursing Participating Agency for the purchase of one (1) Cellebrite Cell Phone Analyzer Subscription for Crescent City Police Department not to exceed Sixteen Thousand Five Hundred Dollars ($16,500).
b. Participating Agency shall be responsible for:
i) The purchase of one (1) Multi-Gas Detector for Crescent City Fire and Rescue not to exceed Four Thousand Five Hundred Dollars ($4,500.00).
ii) The purchase of one (1) Cellebrite Cell Phone Analyzer Subscription for Crescent City Police Department not to exceed Sixteen Thousand Five Hundred Dollars ($16,500). iii) Equipment will be utilized in Del Norte County for the purpose of preparedness and response to emergency situations and to support state and local efforts to prevent terrorism and other catastrophic events.
iv) The Participating Agency is solely responsible for the service and maintenance of equipment and supplies provided under this Second-Tier Subaward.
v) The equipment and supplies granted shall be considered the property of Participating Agency. Participating Agency shall maintain and administer a sound business program for ensuring the proper use, protection, insurance and preservation of the equipment granted under this Second-Tier Subaward. Participating Agency may not sell, transfer or otherwise dispose of any equipment or supplies granted under this Second-Tier Subaward without prior approval by County. Participating Agency shall take reasonable steps to ensure that all equipment and supplies granted under this Second-Tier Subaward are made available for use pursuant to a bonafide request for mutual-aid or interagency disaster assistance. vi) Participating Agency will obtain three quotes for equipment prior to purchase. The Participating Agency will use the lowest price option that meets the needs of the Participating Agency. If three quotes are not available this will be documented and the documentation provided to County prior to the purchase.
vii)Participating Agency will track equipment purchased with grant funds and provide identification tag numbers, serial numbers or other form of tracking for equipment purchased.

The Participating Agency may obtain an identification sticker from County of Del Norte Office of Emergency Services if another tracking method is not available. viii) Participating Agency shall follow the FY 2024 Standard Assurances For Cal OES Federal Non-Disaster Preparedness Grant Programs and Program Standard Assurances Addendum, attached hereto as Exhibit A.
ix) Participating Agency will follow the County of Del Norte Office of Emergency Services Grants Monitoring Policies and Procedures and Addendum, attached hereto as Exhibit B.

x) Participating Agency will comply with annual equipment inventory requests from the County. Requested inventory information will be returned within ten (10) days. The County may inventory items in person with reasonable notice.
xi) Participating Agency will comply with Prohibitions on Expending FEMA Award Funds for Covered Telecommunications Equipment or Services FEMA Policy #405-143-1. The policy is available at https://www.fema.gov/sites/default/files/documents/fema_policy-405-143-1- prohibition-covered-services-equipment-gpd.pdf.

4. Shared Resources. All non-fiscal resources shared between the Parties shall be as follows:
a. None.

5. Reporting Requirements. Participating Agency shall comply with all reporting requirements necessary for the County to meet Cal OES reporting requirements, including but not limited to:
a. All reporting activities and records requirements set forth in:
i) FY 2024 Standard Assurances For Cal OES Federal Non-Disaster Preparedness Grant Programs and Program Standard Assurances Addendum, attached hereto as Exhibit A. ii) County of Del Norte Office of Emergency Services Grants Monitoring Policies and Procedures, attached hereto as Exhibit B.

6. Transfer of Grant Subaward Funds.
a. Total Amount of Funds. The total amount of Grant Subaward funds that may be transferred to the Participating Agency under this Second-Tier Subaward is Twenty One Thousand Dollars ($21,000.00).
b. Invoicing. The Participating Agency shall submit invoices for approval to the County not more frequently than monthly and not less frequently than annually. In order to be eligible for reimbursement, invoices shall be for allowable, approved costs incurred in accordance with the terms of this Second-Tier Subaward. All invoices submitted under this Second-Tier Subaward including the final invoice must be received by the County no later than thirty (30) days after the end of the reporting period for that invoice. All invoices should include: Grant Subaward number, Program name, and the period for which payment is being requested. An authorized representative of the Participating Agency shall sign and certify on each invoice that the costs for which reimbursement is requested are the actual costs as recorded in the Participating Agency’s records and as expended for the work actually performed in accordance with the terms of this Second-Tier Subaward.
c. Payment. Payment for allowable, approved expenses shall be made upon receipt by the County of an invoice. Payment shall be contingent upon County’s receipt of Grant Subaward funds and upon the Participating Agency’s compliance with the terms and conditions of this Second-Tier Subaward. All payments shall be subject to correction and adjustment upon audit or any disallowance. The Participating Agency is solely responsible for reimbursing the County for amounts paid to the Participating Agency but disallowed under the terms of this Second-Tier Subaward. The County reserves the right to withhold final payment under this Second-Tier

Subaward until acceptance by the County of all services, reports, supplies and/or documentation called for hereunder. Payment terms are net thirty (30) days computed either from the date of delivery and acceptance of the work or from the date of receipt of correct and proper invoices prepared in accordance with the terms of the Second-Tier Subaward, whichever date is later.

7. Compliance With All Applicable Requirements. Participating Agency shall comply with all applicable requirements of Notice of Funding Opportunity (NOFO) for the Program. Participating Agency shall further comply with all provisions of the California Supplement to the Federal Notice of Funding Opportunity concerning use of the Grant Subaward funds.

By entering this Second-Tier Subaward, Participating Agency acknowledges and represents that Participating Agency is familiar with the requirements of the NOFO and California Supplement to the Federal Notice of Funding Opportunity, as applicable, and certifies that Participating Agency will comply with all applicable requirements therein.

Participating Agency shall also comply with any and all applicable state or federal requirements necessary for carrying out its work under this Second-Tier Subaward. Participating Agency shall also comply with the assurances and requirements set forth in the FY 2024 Standard Assurances For Cal OES Federal Non-Disaster Preparedness Grant Programs and Program Standard Assurances Addendum applicable to the Grant Subaward and/or the Program.

8. Audits. Participating Agency shall be subject to audits and all audit requirements set forth in the Notice of Funding Opportunity (NOFO) Fiscal Year 2024 Homeland Security Grant Program and the Fiscal Year 2024 California Supplement to the Federal Notice of Funding Opportunity. Further, County, or its duly authorized representatives shall, until three (3) years after final payment under this Second-Tier Subaward, have access to any of the Participating Agency’s records related to this Second-Tier Subaward, at the Participating Agency’s regular place of business, for the purpose of conducting audits. The period of access for records relating to: a) appeals under a dispute, b) litigation or settlement of claims arising from the performance of this Second-Tier Subaward, or c) costs and expenses of this Second-Tier Subaward to which exception has been taken shall continue until such appeals, litigation, claims, or exceptions are disposed of.

9. Independent Contractor. Participating Agency is and shall at all times remain as to the County a wholly independent contractor. The personnel performing the services under this Second-Tier Subaward on behalf of Participating Agency shall at all times be under Participating Agency’s exclusive direction and control. Neither County or their employees or agents shall have control over the conduct of Participating Agency or any of Participating Agency’s officers, employees or agents, except as set forth in this Second-Tier Subaward. Participating Agency shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the County. Participating Agency shall not incur or have the power to incur any debt, obligation or liability whatever against County, or bind the County in any manner.

10. Assignment. The Participating Agency may not assign, transfer or subaward any part of this Second-Tier Subaward, any interest herein or claims hereunder, without the prior, written approval of the County.

11. Termination. The County may at any time cancel this Second-Tier Subaward or renewal thereof, with or without cause, by giving thirty (30) days advance written notice to Participating Agency, which shall commence on the date of mailing of the written notice by certified mail or personal delivery. Thereafter, this Second-Tier Subaward shall become null and void except for the portion or

portions of payment herein agreed upon for which expenses have been necessarily incurred in the performance of this Second-Tier Subaward.

12. General Release. The Participating Agency’s acceptance of payment of the final invoice under this Second-Tier Subaward shall release the County from all claims of the Participating Agency, and from all liability to the Participating Agency concerning the work.

13. Amendments and Modifications. By mutual written consent, the Parties may make modifications or changes to the work and/or to the terms of this Second-Tier Subaward. Any such modifications or changes shall be in the form of a written amendment signed by authorized representatives of all Parties.

14. Indemnification. Participating Agency shall defend, indemnify and hold harmless County, their officers, employees, and agents from and against any and all liability, loss, expense (including reasonable attorneys' fees), or claims for injury or damages arising out of the performance of this Second-Tier Subaward. This indemnification provision shall survive termination of the Subaward and remain in effect.

15. Insurance. Participating Agency shall procure and maintain for the duration of the Second-Tier Subaward insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Participating Agency, his agents, representatives, employees or subcontractors. a. Minimum Scope of Insurance:

Coverage shall be at least as broad as:
i) Commercial General Liability (CGL): Insurance coverage on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury with limits no less than One Million Dollars ($1,000,000.00) per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this Second-Tier Subaward or the general aggregate limit shall be twice the required occurrence limit.
ii) Automobile Liability: Insurance covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with a limit no less than One Million Dollars ($1,000,000.00) per accident for bodily injury and property damage. iii) Workers’ Compensation: as required by the State of California, with statutory limits, and Employer’s Liability Insurance with a limit of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease.

Workers’ Compensation and Employer’s Liability Insurance is not required if the Participating Agency provides written verification it has no employees. b. Additional Insurance Coverage:

To the extent coverage is applicable to Participating Agency’s services under this Second-Tier Subaward, Participating Agency must maintain the following insurance coverage:
i) Cyber Liability: Insurance, with limits not less than Two Million Dollars ($2,000,000.00) per occurrence or claim, Two Million Dollars ($2,000,000.00) aggregate.

c. Other Insurance Provisions:
i) If the Participating Agency maintains broader coverage and/or higher limits than the minimums shown above, the County requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Participating Agency. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the County.
ii) The County, its officers, officials, employees, and volunteers are to be covered as additional insureds on the Commercial General Liability policy with respect to liability arising out of work or operations performed by or on behalf of the Participating Agency. iii) For any claims related to this Second-Tier Subaward, the Participating Agency’s insurance coverage shall be primary coverage as respects the County, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the County shall be excess of the Participating Agency’s insurance and shall not contribute with it. iv) Each insurance policy required by this Second-Tier Subaward shall provide that coverage shall not be canceled, except with written notice to the County thirty (30) days prior to the policy’s termination date.
v) Participating Agency hereby grants to the County a waiver of any right to subrogation which any insurer of Participating Agency may acquire against the County by virtue of the payment of any loss under such insurance. Participating Agency agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the County has received a waiver of subrogation endorsement from the insurer.
vi) The Participating Agency shall contractually require and verify that all subcontractors maintain insurance applicable to their scope of work, meeting all the indemnity and insurance requirements required of the Participating Agency under this Agreement, and shall also require its subcontractors to provide endorsements (a.) Naming the County as an additional insured, (b.) Agreeing that the subcontractor's insurance shall be primary and shall not require contribution from the County's insurance or self-insurance program, and (c.) Waiver of subrogation rights in favor of the County and provide proof of such upon the County's request.
vii)Prior to commencing any work under this Second-Tier Subaward, Participating Agency shall furnish County with certificates of insurance and original endorsements evidencing the coverage, limits, and conditions required by this Second-Tier Subaward.

16. Appropriated Funds. The continuation and renewal of this Second-Tier Subaward shall be subject to sufficient appropriated funds being received by County to administer and support the Program. In the event sufficient funds are not available or are discontinued at any time, the County may cancel this Second-Tier Subaward by delivering written notice to the Participating Agency.

17. Notices. All notices required or permitted by this Second-Tier Subaward shall be by written instrument and shall be mailed by certified mail or personally delivered to the respective primary contact listed in Section 1 of this Second-Tier Subaward.

18. Waiver. No waiver of any breach of this Second-Tier Subaward shall be held to be a waiver of any other subsequent breach. The failure of the County to enforce at any time any of the provisions of this Second-Tier Subaward, or to require at any time performance of any of the provisions thereof, shall in no way be construed to be a waiver of such provisions nor in any way affect the validity of this Second-Tier Subaward or effect the rights of the County to thereafter seek enforcement of the Second-Tier Subaward.

19. Applicable Law. This Second-Tier Subaward shall be interpreted and governed by the laws of the State of California and venue shall be the Superior Court for the County of Del Norte.

20. Entire Agreement. This Second-Tier Subaward is the complete agreement of the Parties and supersedes all prior understandings regarding the services provided hereunder.

21. Severability. If any provision of this Second-Tier Subaward is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired thereby.

22. Counterparts and Electronic Signatures. This Second-Tier Subaward may be executed in one or more counterparts, and counterparts may be exchanged by facsimile, email or other electronic transmission, each of which will be deemed an original, but all of which together constitute one and the same instrument.

IN WITNESS WHEREOF, the respective parties have executed this Subaward on the dates indicated below.
***********
COUNTY OF DEL NORTE as
Subrecipient
By:
(Signature of Authorized Official of County)
Name: __________________________
Title: ___________________________
Date: ___________________________
CITY OF CRESCENT CITY as
Participating Agency
By:
(Signature of authorized official of Participating
Agency)
Name:

Title:

Date: __________________________________

FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs
As the duly authorized representative of the Applicant, I hereby certify that the Applicant has the legal authority to apply for federal assistance and the institutional, managerial, and financial capability (including funds sufficient to pay any non-federal share of project cost) to ensure proper planning, management, and completion of the project described in this application, within prescribed timelines.

The requirements outlined in these assurances apply to Applicant and any of its subrecipients.

I further acknowledge that the Applicant is responsible for reviewing and adhering to all requirements within the:
(a) Applicable Federal Regulations (see below);
(b) Federal Program Notice of Funding Opportunity (NOFO); (c) Federal Preparedness Grants Manual;
(d) California Supplement to the NOFO; and
(e) Federal and State Grant Program Guidelines.

Federal Regulations
Government cost principles, uniform administrative requirements, and audit requirements for federal grant programs are set forth in Title 2, Part 200 of the Code of Federal Regulations (C.F.R.) and adopted by the Department of Homeland Security (DHS) at 2 C.F.R. Part 3002.10. Updates are issued by the Office of Management and Budget (OMB) and can be found at http://www.whitehouse.gov/omb/.

In the event Cal OES determines that changes are necessary to the subaward after a subaward has been made, including changes to period of performance or terms and conditions, Applicants will be notified of the changes in writing. Once notification has been made, any subsequent request for funds will indicate Applicant acceptance of the changes to the subaward.

State and federal grant award requirements are set forth below. The Applicant hereby agrees to comply with the following:

1. Proof of Authority
The Applicant will obtain proof of authority from the city council, governing board, or authorized body in support of this project. This written authorization must specify that the Applicant and the city council, governing board, or authorized body agree:

Exhibit A
FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs
(a) To provide all matching funds required for the grant project and that any cash match will be appropriated as required;
(b) Any liability arising out of the performance of this agreement shall be the responsibility of the Applicant and the city council, governing board, or authorized body;
(c) Grant funds shall not be used to supplant expenditures controlled by the city council, governing board, or authorized body;
(d) The Applicant is authorized by the city council, governing board, or authorized body to apply for federal assistance, and the institutional, managerial and financial capability (including funds sufficient to pay the non-federal share of project cost, if any) to ensure proper planning, management and completion of the project described in this application; and
(e) The official executing this agreement is authorized by the Applicant.

This Proof of Authority must be maintained on file and readily available upon request.

2. Period of Performance
The period of performance is specified in the Award. The Applicant is only authorized to perform allowable activities approved under the award, within the period of performance.

3. Lobbying and Political Activities
As required by Section 1352, Title 31 of the United States Code (U.S.C.), for persons entering into a contract, grant, loan, or cooperative agreement from an agency or requests or receives from an agency a commitment providing for the United States to insure or guarantee a loan, the Applicant certifies that:
(a) No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an 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.

Exhibit A

FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs
(b) 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, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying”, in accordance with its instructions.
(c) The Applicant shall require that the language of this certification be included in the award 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.

The Applicant will also comply with provisions of the Hatch Act (5 U.S.C. §§ 1501- 1508 and §§ 7324-7328) which limit the political activities of employees whose principal employment activities are funded in whole or in part with federal funds.

Finally, the Applicant agrees that federal funds will not be used, directly or indirectly, to support the enactment, repeal, modification or adoption of any law, regulation, or policy without the express written approval from the California Governor’s Office of Emergency Services (Cal OES) or the federal awarding agency.

4. Debarment and Suspension
As required by Executive Orders 12549 and 12689, and 2 C.F.R. § 200.214 and codified in 2 C.F.R. Part 180, Debarment and Suspension, the Applicant will provide protection against waste, fraud, and abuse by debarring or suspending those persons deemed irresponsible in their dealings with the federal government. The Applicant certifies that it and its subrecipients:
(a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency;
(b) Have not within a three-year period preceding this application been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or contract under a public transaction; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;

Exhibit A
FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs
(c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state, or local) with commission of any of the offenses enumerated in paragraph (4)(b) of this certification; and (d) Have not within a three-year period preceding this application had one or more public transaction (federal, state, or local) terminated for cause or default.

Where the Applicant is unable to certify to any of the statements in this certification, he or she shall attach an explanation to this application.

5. Non-Discrimination and Equal Employment Opportunity
The Applicant will comply with all state and federal statutes relating to nondiscrimination, including:
(a) Title VI of the Civil Rights Act of 1964 (Public Law (P.L.) 88-352 and 42 U.S.C. § 2000d et. seq.) which prohibits discrimination on the basis of race, color, or national origin and requires that recipients of federal financial assistance take reasonable steps to provide meaningful access to persons with limited English proficiency (LEP) to their programs and services; (b) Title IX of the Education Amendments of 1972, (20 U.S.C. §§ 1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex in any federally funded educational program or activity;
(c) Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794), which prohibits discrimination against those with disabilities or access and functional needs; (d) Americans with Disabilities Act (ADA) of 1990 (42 U.S.C. § 12101et seq.), which prohibits discrimination on the basis of disability and requires buildings and structures be accessible to those with disabilities and access and functional needs;
(e) Age Discrimination Act of 1975, (42 U.S.C. §§ 6101-6107), whichprohibits discrimination on the basis of age;
(f) Public Health Service Act of 1912 (42 U.S.C. §§ 290 dd—2), relating to confidentiality of patient records regarding substance abuse treatment; (g) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. § 3601 et seq.), relating to nondiscrimination in the sale, rental or financing of housing as implemented by the Department of Housing and Urban Development at 24 C.F.R. Part100. The prohibition on disability discrimination includes the requirement that new multifamily housing with four or more dwelling units — i.e., the public and common use areas and individual apartment units (all units in buildings with elevators and ground-floor units in buildings without elevators) — be designed and constructed with certain accessible features (See 24 C.F.R. § 100.201);

Exhibit A

FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs
(h) Executive Order 11246, which prohibits federal contractors and federally assisted construction contractors and subcontractors, who do over $10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, sexual orientation, gender identification or national origin;
(i) Executive Order 11375, which bans discrimination on the basis of race, color, religion, sex, sexual orientation, gender identification, or national origin in hiring and employment in both the United States federal workforce and on the part of government contractors;
(j) California Public Contract Code § 10295.3, which prohibits discrimination based on domestic partnerships and those in same sex marriages; (k) DHS policy to ensure the equal treatment of faith-based organizations, under which the Applicant must comply with equal treatment policies and requirements contained in
6 C.F.R. Part 19;
(l) The California’s Fair Employment and Housing Act (FEHA) (California Government Code §§12940-12957), as applicable. FEHA prohibits harassment and discrimination in employment because of ancestry, familial status, race, color, religious creed (including religious dress and grooming practices), sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding), gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, mental and physical disability, genetic information, medical condition, age, pregnancy, denial of medical and family care leave, or pregnancy disability leave, military and veteran status, and/or retaliation for protesting illegal discrimination related to one of these categories, or for reporting patient abuse in tax supported institutions;
(m)Any other nondiscrimination provisions in the specific statute(s) under which application for federal assistance is being made; and
(n) The requirements of any other nondiscrimination statute(s) that may apply to this application.

Civil Rights Policies for Program Beneficiaries and Subrecipients of DHS funding, pertaining to the following are available on the Cal OES website:
• Non-discrimination in Programs & Services
• Reasonable Accommodation for Program Beneficiaries
• Language Access Policy

Exhibit A
FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs

6. Drug-Free Workplace
As required by the Drug-Free Workplace Act of 1988 (41 U.S.C. § 701 et seq.),the Applicant certifies that it will maintain a drug-free workplace and a drug-free awareness program as outlined in the Act.

7. Environmental Standards
The Applicant will comply with state and federal environmental standards, including:
(a) The California Environmental Quality Act (CEQA) (California Public Resources Code §§ 21000-21177), to include coordination with the city or county planning agency;
(b) CEQA Guidelines (California Code of Regulations, Title 14, Division 6, Chapter 3, §§ 15000-15387);
(c) The Federal Clean Water Act (CWA) (33 U.S.C. § 1251 et seq.), which establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters; (d) The Federal Clean Air Act of 1955 (42 U.S.C. § 7401) which regulates air emissions from stationary and mobile sources;
(e) Institution of environmental quality control measures under the National Environmental Policy Act (NEPA) of 1969 (P.L. 91-190); the Council on Environmental Quality Regulations for Implementing the Procedural Provisions of NEPA; and Executive Order 12898 which focuses on the environmentaland human health effects of federal actions on minority and low-income populations with the goal of achieving environmental protection for all communities;
(f) Evaluation of flood hazards in floodplains in accordance with Executive Order 11988;
(g) Executive Order 11514 which sets forth national environmental standards; (h) Executive Order 11738 instituted to assure that each federal agency empowered to enter into contracts for the procurement of goods, materials, or services and each federal agency empowered to extend federal assistance by way of grant, loan, or contract shall undertake such procurement and assistance activities in a manner that will result in effective enforcement of the Clean Air Act and the Federal Water Pollution Control Act Executive Order 11990 which requires preservation of wetlands;
(i) The Safe Drinking Water Act of 1974, (P.L. 93-523); (j) The Endangered Species Act of 1973, (P.L. 93-205);

Exhibit A

FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs
(k) Assurance of project consistency with the approved state management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.);
(l) Conformity of Federal Actions to State (Clear Air) Implementation Plans under Section 176(c) of the Clean Air Act of 1955, as amended (42 U.S.C. §§7401 et seq.); and
(m)The Wild and Scenic Rivers Act of 1968 (16 U.S.C. § 1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system.

The Applicant shall not be: 1) in violation of any order or resolution promulgated by the State Air Resources Board or an air pollution district; 2) subject to a cease-anddesist order pursuant to section 13301 of the California Water Code for violation of waste discharge requirements or discharge prohibitions; or 3) determined to be in violation of federal law relating to air or water pollution.

8. Audits
For subrecipients expending $1,000,000 or more in federal grant funds annually, the Applicant will perform the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and C.F.R., Part 200, Subpart F Audit Requirements.

9. Cooperation and Access to Records
The Applicant must cooperate with any compliance reviews or investigations conducted by DHS. In accordance with 2 C.F.R. § 200.337, the Applicant will give the awarding agency, the Comptroller General of the United States and, if appropriate, the state, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to the award. The Applicant will require any subrecipients, contractors, successors, transferees and assignees to acknowledge and agree to comply with this provision.

10. Conflict of Interest
The Applicant will establish safeguards to prohibit the Applicant’s employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gain.

11. Financial Management
False Claims for Payment - The Applicant will comply with 31 U.S.C §§ 3729-3733 which provides that Applicant shall not submit a false claim for payment, reimbursement, or advance.

Exhibit A

FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs

12. Reporting - Accountability
The Applicant agrees to comply with applicable provisions of the Federal Funding Accountability and Transparency Act (FFATA) (P.L. 109-282), including but not limited to (a) the reporting of subawards obligating $30,000 or more in federal funds, and (b) executive compensation data for first-tier subawards as set forth in 2 C.F.R. Part 170, Appendix A. The Applicant also agrees to comply with the requirements set forth in the government-wide financial assistance award term regarding the System for Award Management and Universal Identifier Requirements located at 2 C.F.R.

Part 25, Appendix A.

13. Whistleblower Protections
The Applicant must comply with statutory requirements for whistleblower protections at 10 U.S.C. § 2409, 41 U.S.C. § 4712, and 10 U.S.C. § 2324, 41 U.S.C. § 4304 and § 4310.

14. Human Trafficking
The Applicant will comply with the requirements of Section 106(g) of the Trafficking Victims Protection Act of 2000, as amended (22 U.S.C. § 7104) which prohibits the Applicant or its subrecipients from: (1) engaging in trafficking in persons during the period of time that the award is in effect; (2) procuring a commercial sex act during the period of time that the award is in effect; or (3) using forced labor in the performance of the award or subawards under the award.

15. Labor Standards
The Applicant will comply with the following federal labor standards:
(a) The Davis-Bacon Act (40 U.S.C. §§ 276a to 276a-7), as applicable, and the Copeland Act (40 U.S.C. § 3145 and 18 U.S.C. § 874) and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§ 327-333), regarding labor standards for federally-assisted construction contracts or subcontracts, and (b) The Federal Fair Labor Standards Act (29 U.S.C. § 201 et seq.) as they apply to employees of institutes of higher learning (IHE), hospitals and other nonprofit organizations.

16. Worker’s Compensation
The Applicant must comply with provisions which require every employer to be insured to protect workers who may be injured on the job at all times during the performance of the work of this Agreement, as per the workers compensation laws set forth in California Labor Code §§ 3700 et seq.

Exhibit A

FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs

17. Property-Related
If applicable to the type of project funded by this federal award, the Applicant will:
(a) Comply with the requirements of Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of federal or federally-assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of federal participation in purchase;
(b) Comply with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires federal award subrecipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more;
(c) Assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. § 470), Executive Order 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. § 469a-1 et seq.); and
(d) Comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. § 4831 and 24 CFR Part 35) which prohibits the use of lead-based paint in construction or rehabilitation of residence structures.

18. Certifications Applicable Only to Federally-Funded Construction Projects For all construction projects, the Applicant will:
(a) Not dispose of, modify the use of, or change the terms of the real property title or other interest in the site and facilities without permission and instructions from the awarding agency. Will record the federal awarding agency directives and will include a covenant in the title of real property acquired in whole or in part with federal assistance funds to assure nondiscrimination during the useful life of the project;
(b) Comply with the requirements of the awarding agency with regard to the drafting, review and approval of construction plans and specifications; and (c) Provide and maintain competent and adequate engineering supervision at the construction site to ensure that the complete work conforms with the approved plans and specifications and will furnish progressive reports and such other information as may be required by the assistance awarding agency or State.

Exhibit A

FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs

19. Use of Cellular Device While Driving is Prohibited
The Applicant is required to comply with California Vehicle Code sections 23123 and 23123.5. These laws prohibit driving motor vehicle while using an electronic wireless communications device to write, send, or read a text-based communication. Drivers are also prohibited from the use of a wireless telephone without hands-free listening and talking, unless to make an emergency call to 911, law enforcement, or similar services.

20. California Public Records Act and Freedom of Information Act The Applicant acknowledges that all information submitted in the course of applying for funding under this program, or provided in the course of an entity’s grant management activities that are under Federal control, is subject to the Freedom of Information Act (FOIA), 5 U.S.C. § 552, and the California Public Records Act, California Government Code §7920.000 et seq. The Applicant should consider these laws and consult its own State and local laws and regulations regarding the release of information when reporting sensitive matters in the grant application, needs assessment, and strategic planning process.

21. Acknowledgment of Federal Funding from DHS
The Applicant must acknowledge its use of federal funding when issuing statements, press releases, requests for proposals, bid invitations, and other documents describing projects or programs funded in whole or in part with federal funds.

22. Activities Conducted Abroad
The Applicant must coordinate with appropriate government authorities when performing project activities outside the United States and obtain all appropriate licenses, permits, or approvals.

23. Best Practices for Collection and Use of Personally Identifiable Information (PII) DHS defines PII as any information that permits the identity of an individual to be directly or indirectly inferred, including any information that is linked or linkable to that individual. If the Applicant collects PII, the Applicant is required to have a publicly-available privacy policy that describes standards on the usage and maintenance of the PII they collect. The Applicant may refer to the DHS Privacy Impact Assessments: Privacy Guidance and Privacy Template as a useful resource.

Exhibit A

FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs

24. Copyright
Recipients must affix the applicable copyright notices of 17 U.S.C. §§ 401 or 402 to any work first produced under federal awards and also include an acknowledgement that the work was produced under a federal award (including the federal award number and federal awarding agency). As detailed in 2 C.F.R. § 200.315, a federal awarding agency reserves a royalty-free, nonexclusive, and irrevocable right to reproduce, publish, or otherwise use the work for federal purposes and to authorize others to do so.

25. Duplicative Costs
Applicants are prohibited from charging any cost to this federal award that will be included as a cost or used to meet cost sharing or matching requirements of any other federal award in either the current or a prior budget period. (See 2 C.F.R. § 200.403(f)).

However, recipients may shift costs that are allowable under two or more federal awards where otherwise permitted by federal statutes, regulations, or the federal financial assistance award terms and conditions.

26. Energy Policy and Conservation Act
The Applicant must comply with the requirements of 42 U.S.C. § 6201 which contain policies relating to energy efficiency that are defined in the state energy conservation plan issued in compliance with this Act.

27. Federal Debt Status
The Applicant is required to be non-delinquent in its repayment of any federal debt.

Examples of relevant debt include delinquent payroll and other taxes, audit disallowances, and benefit overpayments. See OMB Circular A-129.

28. Fly America Act of 1974
The Applicant must comply with Preference for United States Flag Air Carriers:
(a list of certified air carriers can be found at: Certificated Air Carriers List | US Department of Transportation, https://www.transportation.gov/policy/aviationpolicy/certificated-air-carriers-list) for international air transportation of people and property to the extent that such service is available, in accordance with the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. § 40118) and the interpretative guidelines issued by the Comptroller General of the United States in the March 31, 1981, amendment to Comptroller General Decision B-138942.

Exhibit A
FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs

29. Hotel and Motel Fire Safety Act of 1990
In accordance with Section 6 of the Hotel and Motel Fire Safety Act of 1990, the Applicant must ensure that all conference, meeting, convention, or training space funded in whole or in part with federal funds complies with the fire prevention and control guidelines of the Federal Fire Prevention and Control Act of 1974, as amended, 15 U.S.C. § 2225a.

30. Non-supplanting Requirement
If the Applicant receives federal financial assistance awards made under programs that prohibit supplanting by law, the Applicant must ensure that federal funds do not replace (supplant) funds that have been budgeted for the same purpose through non- federal sources.

31. Patents and Intellectual Property Rights
Recipients are subject to the Bayh-Dole Act, 35 U.S.C. § 200 et seq. and applicable regulations governing inventions and patents, including the regulations issued by the Department of Commerce at 37 C.F.R. Part 401 (Rights to Inventions Made by Nonprofit Organizations and Small Business Firms under Government Awards, Contracts, and Cooperative Agreements) and the standard patent rights clause set forth at 37 C.F.R. § 401.14.

32. SAFECOM
If the Applicant receives federal financial assistance awards made under programs that provide emergency communication equipment and its related activities, the Applicant must comply with the SAFECOM Guidance for Emergency Communication Grants, including provisions on technical standards that ensure and enhance interoperable communications.

33. Terrorist Financing
The Applicant must comply with Executive Order 13224 and United States law that prohibit transactions with, and the provisions of resources and support to, individuals and organizations associated with terrorism. The Applicant is legally responsible for ensuring compliance with the Order and laws.

34. Reporting of Matters Related to Recipient Integrity andPerformance If the total value of the Applicant’s currently active grants, cooperative agreements, and procurement contracts from all federal assistance offices exceeds $10,000,000 for any period of time during the period of performance of this federal financial assistance award, the Applicant must comply with the requirements set forth in the

Exhibit A

FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs
government-wide Award Term and Condition for Recipient Integrity and Performance Matters located at 2 C.F.R. Part 200, Appendix XII, the full text of which is incorporated here by reference in the award terms and conditions.

35. USA Patriot Act of 2001
The Applicant must comply with requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act), which amends 18 U.S.C. §§ 175–175c.

36. Use of DHS Seal, Logo, and Flags
The Applicant must obtain written permission from DHS prior to using the DHS seals, logos, crests, or reproductions of flags, or likenesses of DHS agency officials. This includes use of DHS component (e.g., FEMA, CISA, etc.) seals, logos, crests, or reproductions of flags, or likenesses of component officials.

37. Performance Goals (HSGP and NSGP)
In addition to the Biannual Strategy Implementation Report submission requirements outlined in the Preparedness Grants Manual, the Applicant must demonstrate how the grant-funded project addresses the core capability gap associated with each project. The capability gap reduction must be addressed in the Project Description of the BSIR for each project.

38. Applicability of DHS Standard Terms and Conditions to Tribes The DHS Standard Terms and Conditions are a restatement of general requirements imposed upon the Applicant and flow down to any of its subrecipients as a matter of law, regulation, or executive order. If the requirement does not apply to Indian tribes or there is a federal law or regulation exempting its application to Indian tribes, then the acceptance by Tribes of, or acquiescence to, DHS Standard Terms and Conditions does not change or alter its inapplicability to an Indian tribe. The execution of grant documents is not intended to change, alter, amend, or impose additional liability or responsibility upon the Tribe where it does not already exist.

39. Required Use of American Iron, Steel, Manufactured Products, and Construction Materials
The Applicant must comply with the “Build America, Buy America” Act (BABAA), enacted as part of the Infrastructure Investment and Jobs Act and Executive Order 14005. Applicants receiving a federal award subject to BABAA requirements may not use federal financial assistance funds for infrastructure projects unless:

Exhibit A

FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs
(a) All iron and steel used in the project are produced in the United States – this means all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States; (b) All manufactured products used in the project are produced in the United States – this means the manufactured product was manufactured in the United States; and the cost of the components of the manufactured product that are mined, produced, or manufactured in the United States is greater than 55 percent of the total cost of all components of the manufactured product, unless another standard for determining the minimum amount of domestic content of the manufactured product has been established under applicable law or regulation; and (c) All construction materials are manufactured in the United States – this means that all manufacturing processes for the construction material occurred in the United States.

The “Buy America” preference only applies to articles, materials, and supplies that are consumed in, incorporated into, or affixed to an infrastructure project. It does not apply to tools, equipment, and supplies, such as temporary scaffolding, brought to the construction site and removed at or before the completion of the infrastructure project. Nor does a Buy America preference apply to equipment and furnishings, such as movable chairs, desks, and portable computer equipment, that are used at or within the finished infrastructure project but are not an integral part of the structure or permanently affixed to the infrastructure project.

Per section 70914(c) of BABAA, FEMA may waive the application of a Buy America preference under an infrastructure program in certain cases.

40. E.O. 14074 – Advancing Effective, Accountable Policing and Criminal Justice Practices to Enhance Public Trust and Public Safety
Recipient State, Tribal, local, or territorial law enforcement agencies must comply with the requirements of section 12(c) of E.O. 14074. Recipient State, Tribal, local, or territorial law enforcement agencies are also encouraged to adopt and enforce policies consistent with E.O. 14074 to support safe and effective policing.

Exhibit A
FY 2024 Standard Assurances For Cal OES Federal
Non-Disaster Preparedness Grant Programs

IMPORTANT
The purpose of these assurances is to obtain federal and state financial assistance, including any and all federal and state grants, loans, reimbursement, contracts, etc.

Applicant recognizes and agrees that state financial assistance will be extended based on the representations made in these assurances. These assurances are binding on Applicant, its successors, transferees, assignees, etc. as well as any of its subrecipients.

Failure to comply with any of the above assurances may result in suspension, termination, or reduction of grant funds.

All appropriate documentation, as outlined above, must be maintained on file by the Applicant and available for Cal OES or public scrutiny upon request. Failure to comply with these requirements may result in suspension of payments under the grant or termination of the grant or both and the Applicant may be ineligible for award of any future grants if Cal OES determines that the Applicant: (1) has made false certification, or (2) violates the certification by failing to carry out the requirements as noted above.

All of the language contained within this document must be included in the award documents for all subawards at all tiers. Applicants are bound by the DHS Standard Terms and Conditions 2024, Version 2, hereby incorporated by reference, which can be found at: https://www.dhs.gov/publication/fy15-dhs- standard-terms-and-conditions.

The undersigned represents that he/she is authorized to enter into this agreement for and on behalf of the Applicant.

Applicant:

Signature of Authorized Agent:

Printed Name of Authorized Agent:

Title: Date:

Exhibit A
Program Standard Assurances Addendum

As the duly authorized representative of the Applicant/Subrecipient, I hereby certify that the Applicant/Subrecipient, and any of its second-tier subrecipients or representatives, will comply with all applicable local, state, and federal statutes, including but not limited to the following state and federal statutes prohibiting hate-based conduct:
(a) California Penal Code section 422.6(a);
(b) California Penal Code section 404.6;
(c) California Penal Code section 422(a);
(d) California Civil Code section 52.1;
(e) 18 U.S.C. § 249;
(f) 42 U.S.C. § 3631;
(g) 18 U.S.C. § 247; and
(h) 18 U.S.C. § 241, 245.

Additionally, Applicant/Subrecipient will not engage, and certifies that it will take steps to ensure that its second-tier subrecipients and representatives do not engage, in conduct contrary to the purposes of the grant program and/or that threatens the safety and security of Californians, including, but not limited to, acts of violence or unlawful intimidation on the basis of race, gender, religion, national origin, sexual orientation, or other protected classifications. Prohibited conduct includes, but is not limited to, violation of the federal and state laws identified herein.

The undersigned represents that he/she is authorized to enter into this Addendum for and on behalf of the Applicant/Subrecipient. Applicant/Subrecipient understands that failure to comply with this Addendum or any of the assurances may result in suspension, termination, reduction, or de-obligation of funding. Applicant/Subrecipient agrees to repay funds in the event there is a violation of grant assurances.

Applicant/Subrecipient:

Signature of Authorized Agent:

Printed Name of Authorized Agent:

Title: Date:

Exhibit A
Grants Monitoring Procedures Manual – Version 1.1 – December 2022 1 Exhibit B

COUNTY OF DEL NORTE OFFICE

OF EMERGENCY SERVICES

GRANTS MONITORING

POLICIES & PROCEDURES MANUAL
December 2022

TABLE OF CONTENTS
I. MONITORING PROGRAM OVERVIEW ...................................................................... 3 II. COMPLIANCE MONITORING PLAN/ RISK ASSESSMENT ................................. 5 III. COMPLIANCE REVIEW PROCESS .............................................................................. 6 IV. SINGLE AUDIT PROCESS ................................................................................................ 9 Approved and Adopted as an official procedure for Del Norte County Office of Emergency Services:

Date:

Grants Monitoring Procedures Manual - Version 1.1 - December 2022 2 Exhibit B
LalPoh pafis fo.

Neal Lopez, bitettor of OES
Grants Monitoring Procedures Manual – Version 1.1 – December 2022 3 Exhibit B

MONITORING PROGRAM OVERVIEW
Federal grants are subject to federal, state, and local government administrative requirements, cost principles, and audit requirements. The County of Del Norte Office of Emergency Services (DNCO OES) ensures that grants are managed appropriately using a risk-based compliance assessment model and by performing analytical and financial compliance reviews.

Grants Monitoring is comprised of monitors that assist Subrecipients to ensure compliance with applicable regulations, laws, and Grant Subaward provisions.

Items that monitors examine include:
 Organization operations
 Internal and management controls
 Policies and procedures
 Financial reports
 Grant Subaward-related activities and expenditures
High-risk Subrecipients are identified through the annual risk assessment further discussed below. Monitoring reviews are used to provide technical assistance and trainings for Subrecipients to enable the Subrecipients to maintain funding and follow the applicable rules and regulations.

There are four key components the DNCO OES monitoring program model ensures:

1. Subrecipients are monitored during the term of the Grant Subaward;

2. Monitoring efforts focus on the areas of most significant risk;

3. All monitoring findings are addressed through appropriate corrective actions; and

4. Ongoing financial and administrative training and technical assistance is provided to Subrecipients to enable them to comply with Grant Subaward requirements and maintain their funding.

DNCO OES uses the following methods to monitor Subrecipient risk:
 Day-to-Day communication: OES and/or County administrative personnel (“Monitors”) maintain ongoing communication with Subrecipients to provide programmatic guidance and review reimbursement requests.
 Limited Scope Desk and Field Compliance Reviews: Limited scope reviews allow the Subrecipients to make certain assertions regarding various aspects of their operations, or provide Monitors an opportunity to verify the eligibility of expenditures charged to the Grant Subaward/s. These reviews consist of, but are not limited to, the following:

Grants Monitoring Procedures Manual – Version 1.1 – December 2022 4 Exhibit B
• Targeted compliance questionnaire reviews and follow-up corrective action, if required;
• Payment reviews of invoices and other documents supporting a reimbursement claimed by and made to the Subrecipient;
• Review most recent Independent Audit Report(s);
• Field inspection to verify equipment purchases and test equipment management practices; and
• Follow-up virtual and/or site visit(s) to verify implementation of required corrective action.

The scope of the review can be expanded if needed.
 Technical Assistance Services: To ensure Subrecipients are educated regarding Grant Subaward requirements, high-risk problem areas are identified and tracked through the monitoring process and serve as the basis to plan and formulate technical assistance and training for Subrecipients. Monitors provide technical assistance through training (either group or one-on-one), web publications and resources and through the provision of the Subrecipient self-assessment tools. Subrecipients are also supplied information about training opportunities provided by Cal OES and FEMA.

Grants Monitoring Procedures Manual – Version 1.1 – December 2022 5 Exhibit B

COMPLIANCE MONITORING PLAN / RISK ASSESSMENT
The Annual Compliance Monitoring Plan identifies the proposed Subrecipients eligible for a compliance review for the year. The Annual Compliance Monitoring Plan is developed based on the annual risk assessment. The Plan is developed on a fiscal year basis beginning in July and ending in June of the following year.

Risk Factor Analysis and Monitoring Selection
An accurate risk assessment is critical to the success of the DNCO OES’s compliance review efforts. DNCO OES Subrecipients are weighted using the risk factors and scores to identify potential problems before they occur so that risk-handling activities may be planned to mitigate adverse impact on the results. Although Subrecipients identified as high risk are the main objective of the Monitors, medium and low-risk Subrecipients can be selected for a monitoring visit. Medium and low-risk Subrecipients may be monitored based on anonymous tips, requests from Subrecipients, or management directive/County discretion.

Risk Assessment Process

1. Obtain a list of all Subrecipients and associated grants from the FMFWs from the prior 3 years.

2. Filter by Subrecipient to show all grants the Subrecipient received from DNCO OES.

3. Review Compliance Monitoring database.

The two (2) Subrecipients with the most accrued points will receive Compliance Monitoring that year. (The County reserves the right to determine placement of other Subrecipients on the Annual Compliance Monitoring Plan for reasons stated above.)
Criteria Points Awarded
New Subrecipient (Subrecipients with no awards within the last 10 years) 3 Subrecipients with three (3) or more grants awarded within the time frame 5 + 3 ea. addt’l grant Total award within period is equal to or greater than $50,000 5 + 3 ea. addt’l $25k Last compliance review more than 3 years ago (previous Subrecipients) 3pts Previous compliance monitoring finding (within 5 years) 5pts Previous independent audit finding (within 5 years) 5pts The Annual Compliance Monitoring Plan is prepared by the DNCO OES and is approved by the County Administrative Officer and/or the Assistant County Administrative Officer.

Grants Monitoring Procedures Manual – Version 1.1 – December 2022 6 Exhibit B

COMPLIANCE REVIEW PROCESS
Compliance Review
The objective of a compliance review is to ensure the Subrecipient complies with the Code of Federal Regulations, applicable state laws, and other governing regulations, internal policies, and general good business practices. The compliance review process is outlined below:

Notification Letter: The compliance review begins with the issuance of a notification letter.

The purpose of this letter is to notify the point of contact listed for the Subrecipient in writing that a compliance review will be conducted. The letter identifies the grant(s) selected for review, scope of the review, due date for documents requested, and proposed date of field inspection.

Request for Documentation: A request for documentation is included with the notification letter. These records might include, but are not limited to, contracts, invoices, procurement records, indirect costs methodology, property ledger, and personnel ledger, including timesheets and supporting documentation to support match.

Internal Controls Questionnaire: An internal controls questionnaire is included with the notification letter. The questionnaire asks specific questions regarding internal controls, procurement process, personnel, and amount of state and federal grant funding received.

Entrance Conference (Meeting): An entrance conference is scheduled with the Subrecipient’s executive management and key personnel to discuss the purpose, objectives and scope of the compliance review. The Monitor will explain the compliance review process, review the documentation provided and follow up on any missing/incomplete records, and inquire if there are any specific areas where the Subrecipient would like focused technical assistance. Additionally, the Monitor will confirm the date of the field inspection.

Field Inspection: During the field inspection, the Monitor(s) will visit the Subrecipient's physical location to verify equipment purchases and test equipment management practices.

Exit Conference: The lead Monitor will schedule an Exit Conference with the Subrecipient within 30 days of the Field Inspection to discuss the results of the compliance review and any concerns that may have arisen. A draft compliance report will be provided to the Subrecipient no less than three (3) working days before the exit conference. The exit conference provides an opportunity to resolve any questions the Subrecipient may have about the concerns raised and address any other issues before the compliance report is finalized.

Grants Monitoring Procedures Manual – Version 1.1 – December 2022 7 Exhibit B
Paperwork and Reporting
Good documentation throughout the Compliance Review Process helps support conclusions, build trust between the Grantee and Subrecipient, and assists with providing technical assistance as needed.

Working Papers: Monitors should prepare and organize their working papers in a manner that helps provide an appropriate quality review. The Monitors should avoid preparing or accumulating unnecessary working papers or making extensive copies of the Subrecipient records. It is neither necessary nor practical for the monitors to document every matter considered during the review. Documentation supporting all findings must be retained in the working file. Good working papers should meet the monitoring requirements by displaying the following characteristics:
 State the dates of the review, as well as the year of the grant(s) under review, so that the working paper is not confused with documentation belonging to a different year/period;  List what was reviewed in the limited scope desk and field inspection review. This will enable the Monitor, and any subsequent reviewers, to determine the sufficiency of the review evidence provided by the working paper;
 Document any technical assistance requested and/or provided;  Working papers should clearly and objectively state the results of each tenant of the limited scope desk and filed inspection compliance reviews;  Conclusions should be consistent with the results of the review and should be able to withstand independent scrutiny;
 Working papers should be signed by the person who prepares them; and  Working papers should be signed and dated by any person who reviews them; and  Working papers should be filed appropriately as to be found easily when required at a later date.

Working papers should provide evidence that an effective, efficient, and accurate review has been carried out. They should be completed in a manner so that a Monitor with no previous experience of the review can understand the work completed and how the conclusion was reached.

Compliance Review Report: The next step is to issue the compliance review report to the Subrecipient including senior management and key administrative staff. The report outlines all non-compliance issues and findings, provides recommendations for improvement and may request the Subrecipient generate a CAP.

Findings: A finding is an operational deficiency in internal controls, noncompliance with provisions of laws, regulations, contracts, Grant Subawards, or fraud, waste and abuse.

Grants Monitoring Procedures Manual – Version 1.1 – December 2022 8 Exhibit B
Recommendations: A recommendation must provide a course of action that will correct a finding or issue that has been identified and provide improvements. Recommendations should be action-oriented, convincing, well-supported, and effective.

Questioned Costs: A questioned cost can result from a violation, or possible violation, of a statute, regulation, or the terms and conditions of a federal Grant Subaward. In addition, it could be a cost not supported by adequate documents, or appears unreasonable and does not reflect the actions a prudent Subrecipient would take in the circumstances.

Disallowed Costs: A disallowed cost is a charge that the pass-through entity determines to be unallowable according to the Code of Federal Regulations and the State or County Administrative Manual. Some examples of disallowed costs can be the purchase of alcohol, lobbying, or costs pertaining to waste, fraud, and abuse.

CAP: Once the Subrecipient receives the compliance review report, they will have 30 days to either dispute the findings or provide a CAP to correct and address any finding(s). After a CAP is received, the Subrecipient has six months from the date of the report to implement the CAP and to pay back any disallowed costs. If necessary, follow-up reviews will be conducted by the County to ensure that corrective actions are implemented timely.

If a Subrecipient fails to comply with the required necessary corrections identified, funding may be suspended until corrections are completed. Failure to comply with grant requirements may subject the Subrecipient to Special Conditions of future funding opportunities or the Subrecipient may be required to pay back a reimbursement.

Closing Letter: Once the CAP is received and the Subrecipient has satisfactorily addressed and/or corrected all findings, Grants Management will issue a closing letter informing the Subrecipient that the compliance review is closed.

Appeals Process: If the Subrecipient does not agree with the finding, they have 30 days from the date the compliance review report is issued to dispute the finding in writing and provide additional supporting documentation. If the finding is not cleared with the additional information provided, a notification letter will be issued. The Subrecipient may appeal the decision to the County within 30 days of the notification letter. The final decision on any appeal rests with the County Administrative Officer.

Grants Monitoring Procedures Manual – Version 1.1 – December 2022 9 Exhibit B

COMPLIANCE MONITORING PLAN / RISK ASSESSMENT
Subrecipients of federal grants are required to comply with the Title 2 CFR § 200.501(a). This section requires that a non-federal entity that expends $750,000 or more during the non-federal entity's fiscal year in federal awards must have a single or program-specific audit conducted for that year and submitted within the earlier of 30 calendar days after receipt of auditor's report or nine months after the end of the audit period. A non-federal entity that expends less than the $750,000 during the non-federal entity's fiscal year in federal awards is exempt from federal audit requirements for that year. Guidance on determining federal awards expended is provided in accordance with Title 2 CFR § 200.502.

Monitors review Subrecipients to ensure they comply with the audit requirement. On an annual basis, Grants Monitoring requests Subrecipients complete an Audit Form certifying whether they meet or are exempt from the audit requirement. If they meet the requirement, they must submit a copy of their single or program-specific audit report. The audit reports are tracked and used to conduct the annual risk assessment.

All audits received are tracked and reviewed within 30 days of receipt, and if required, follow-up is initiated to ensure corrective action is implemented on all DNCO OES findings. Audits with DNCO OES findings are issued a Management Decision Letter upon resolution of the finding. Subrecipients that do not comply with the audit requirement may not be eligible for future grant funding.

CITY COUNCIL AGENDA REPORT
TO: MAYOR ALTMAN AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: BRIDGET LACEY, GRANTS AND ECONOMIC DEVELOPMENT

MANAGER
DATE: AUGUST 18, 2025
SUBJECT: CREATION OF NEW FUND FOR 2024 CDBG AWARD
______________________________________________________________________

RECOMMENDATION
• Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve and adopt Resolution No. 2025-40, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF CRESCENT CITY AUTHORIZING THE CREATION OF A NEW SPECIAL REVENUE FUND FOR THE 24-CDBG-10004-213 AWARD

AND ASSOCIATED PROJECTS

BACKGROUND
The Department of Housing and Community Development administers the Community Development Block Grant (CDBG) program for non-entitlement jurisdictions in California. (Cities with populations less than 50,000 and Counties with populations less than 200,000 are considered non-entitlement areas, meaning they do not apply for CDBG funding directly from the Federal government but rather apply to the State.) This program provides grant funding for programs associated with economic development and services to lowincome individuals and families. Activities eligible for General Allocation funding include public services, public facilities, public improvements, housing activities, business assistance, microenterprise assistance, and planning and technical studies.

The City applied for and was awarded a grant under the 2024 CDBG Notice of Funding Availability. The grant of $1,800,000 is to provide funding for economic development

Agenda Report – August 18, 2025
Authorization to Create Special Revenue Fund for 2024 CDBG Award

(Business Assistance Loan Program), a public service (FRC Food Pantry), and grant administration.

CDBG regulations require that this money be accounted for in a separate fund and used only for grant-eligible purposes.

ANALYSIS
City Council approval is required to create a new fund in the City’s accounting system.

Upon approval, the Finance Department will create the fund and appropriate accounts for tracking the revenues and expenses related to this grant.

FISCAL ANALYSIS
There is no fiscal impact to creating a new fund in the City’s accounting system. However, the use of a special fund is required by the granting agency and failure to do so would result in audit findings.

STRATEGIC PLAN ANALYSIS
This report is consistent with the 2016 Strategic Plan Goal 3, ongoing priority to “Maintain responsible fiscal management and accountability.”

ATTACHMENTS
• Resolution No. 2025-40
• CDBG Award announcement
CITY OF CRESCENT CITY RESOLUTION NO. 2025-40 Page 1
RESOLUTION NO. 2025-40

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY ESTABLISHING A NEW FUND FOR THE 24-CDBG-10004-213 AWARD AND

ASSOCIATED PROJECTS
WHEREAS, the City of Crescent City has been awarded Community Development Block Grant funds under the 24-CDBG-10004-213 agreement; and WHEREAS, CDBG regulations require that this money be kept separate from other funding sources and has explicit restrictions as to its use.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AS FOLLOWS:

SECTION 1:

That the City of Crescent City establish a new fund for the 24-CDBG-10004-213 award and associated projects.

SECTION 2:

That this resolution shall take effect upon its adoption.

APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Crescent City held this 18th day of August 2025, by the following polled vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Ray Altman, Mayor
ATTEST:
_____________________________
Robin Altman, City Clerk

Edona Evans
7/18/2025
City of Crescent City
24-CDBG-10004

EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025

AUTHORITY, PURPOSE, AND SCOPE OF WORK

1. Authority & Purpose
This Standard Agreement (hereinafter "Agreement") will provide official notification of the reservation of funds under the State of California's administration of the federal Community Development Block Grant Program for nonentitlement- jurisdictions (hereinafter, "CDBG" or the “Program") by the Department of Housing and Community Development (hereinafter the "Department") pursuant to the provisions of 42 U.S. Code (U.S.C.) 5301, et seq., 24 Code of Federal Regulations (CFR) Part 570, Subpart l, California Health and Safety Code Section 50825, et seq., and the California State CDBG Program Guidelines in effect as of October 15, 2019, all as may be amended from time to time. The Program is listed in the federal System of Award Management Assistance Listings (formerly Catalog of Federal Domestic Assistance) as 14.228 – CDBG – Community Development Block Grant Program. In accepting this reservation of funds by executing this Agreement, the Grantee agrees to comply with the terms and conditions of this Agreement, the Notice of Funding Availability (NOFA) under which the Grantee applied, as identified in this document footer, the representations contained in the Grantee's application (the "Application") for this funding allocation, which is incorporated herein by reference and is included as a summary in Exhibit E, and the requirements of the authorities cited above. For activities funded outside of a NOFA, including activities funded through Program Income, and activities funded through Urgent Need, the Grantee agrees to comply with the terms and conditions of this Agreement, the representations contained in the Grantee’s Application for activity funding, which is incorporated herein by reference and is included as a summary in Exhibit E, and the requirements of the authorities cited above. Any changes made to the submitted and awarded Application after this Agreement is executed must receive prior written approval from the Department. For purposes of this Agreement, use of the term "Grantee" shall be a reference to "Contractor."

2. State CDBG Program Contract Management
A. Department Contract Manager: For purposes of this Agreement, the State CDBG Program Contract Manager for the Department is the Program Manager(s) of the State CDBG Program in the Division of Federal Financial Assistance, or such person’s designee. Written communication regarding this Agreement shall be directed to the State CDBG Program Contract Manager at the following address*:

State CDBG Program Contract Manager
Division of Financial Assistance
Department of Housing and Community Development
City of Crescent City
24-CDBG-10004

EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
P.O. Box 952054
Sacramento, California 94252-2054
Ph: (916) 776-7770
Email: [email protected]
*Due to the telework policy in place for the State of California, communications should be done electronically to ensure timely response.

B. Contract Management: Day-to-day administration of this Agreement shall take place through the online grant management system, including but not limited to:
1) Financial Reports (Funds Requests);
2) Activity Reports;
3) Monitoring and technical assistance requests;
4) Submittal of any and all requested supporting documentation; 5) Standard Agreement Revisions (non-material contract changes); 6) Standard Agreement Amendments (material contract changes); and, 7) Program Income Reporting and Receipting.

C. Capacity to Contract: Grantee has the capacity and authority to fulfill the obligations required of it hereunder and nothing prohibits or restricts the right or ability of Grantee to carry out the terms hereof.

D. Authority to Execute: Each person executing this Agreement represents and warrants to the Department that they are duly authorized to execute and deliver this Agreement on behalf of the Grantee, and that such authority is evidenced by a valid binding written authorization. The person executing this Agreement, and the Grantee, acknowledge that the Department is materially relying upon the foregoing representation and warranty in agreeing to enter into this Agreement. In the event of a defect in any resolution submitted to the Department in connection herewith, then this provision shall be deemed satisfactory and admissible evidence of the authority of the signer to bind Grantee to this Agreement and Grantee shall remain fully bound to the terms hereof. In the event the Department determines in its sole discretion that a resolution submitted by the Grantee is deficient in any way, then within thirty (30) days of the Department’s request, Grantee shall resubmit a new resolution which is satisfactory to the Department. Failure by the Grantee to timely provide such resolution to the Department shall constitute a default under this Agreement.

City of Crescent City
24-CDBG-10004

EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
**Authorized Signatory for Contracts involving a City Jurisdiction Recipient: Pursuant to California Government Code sections 40601 and 40602, the Mayor or Mayor pro tempore must sign any written contracts and conveyances made or entered into by the city, unless the city has an ordinance in effect that specifically allows or designates contracts to be signed by an officer other than the mayor or mayor pro tempore. Accordingly, if the city does not have a city ordinance described above, then the Department requires that the Mayor or Mayor pro tempore sign this Agreement as the authorized signer for the city and provide to the Department a resolution from the City Council authorizing the Mayor to sign this Agreement and related documents on behalf of the city. The mayor or mayor pro tempore may not delegate to a third party his or her authority to sign documents unless there is a city ordinance in effect that expressly authorizes such delegation and a duly-authorized resolution reflecting such delegation is provided to the Department. If the city does have an ordinance as described above, the Department requires the city to provide a copy of such ordinance, as well as a resolution that indicates the name and title of the city official(s) authorized to sign this Agreement and related documents.

All resolutions required by this section must be in form and content acceptable to the Department.

3. Scope of Work
A. The Grantee shall perform the scope of work described in Exhibit E and adhere to the content of the Application which is on file with the Department and which is incorporated herein by reference (Application). All written materials or alterations submitted as addenda to the original Application and which are approved in writing by the Department are hereby incorporated as part of the Application. The Department reserves the right to require the Grantee to modify any or all parts of the Application in order to comply with CDBG requirements. The Department reserves the right to monitor all work to be performed by the Grantee, its agencies or instrumentalities, Subrecipients*, and contractors in relation to this Agreement. Any proposed change to the scope of work and/or the Application must be submitted in writing for review and approval by the Department and may require an amendment to this Agreement. Approval shall not be presumed unless such approval is made by the Department in writing.
*Subrecipient means a non-federal entity that receives a subaward of program funding from a grantee; “Subrecipient” does not mean a beneficiary of the program.

City of Crescent City
24-CDBG-10004

EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
B. For the purposes of performing the scope of work described in Exhibit E, the Department agrees to provide the amount(s) identified in the STD 213 as detailed in the Department-approved Application, which is incorporated herein by reference.

Unless this Agreement is amended in writing, the Department shall not be liable for any costs in excess of the total approved budget. The Department shall not, under any conditions, be liable for any unauthorized or ineligible costs or activities.

C. Except for General Program Administration, grant activity(ies) must meet one of the following three CDBG National Objectives:
1) Benefit to Low/Moderate Income Persons or Households, 2) Urgent Need, or
3) Elimination of Slums or Blight as defined in 24 CFR 570.483.

4. Effective Date and Commencement of Work
A. This Agreement is effective upon approval by the Department as evidenced by the Department representative’s signature on page two of the fully executed Standard Agreement form STD 213.

B. The CDBG Grantee agrees that no work toward the implementation of the project activity or program activity, as identified in Exhibit E, shall commence without prior written authorization from the Department prior to the execution of this Agreement by the Department.

5. Term of Agreement and Deadlines
A. Term of Agreement: The Grantee shall complete the grant activity and/or activities on or before 36 months (three (3) years) from the Department’s execution date identified on the STD 213 form for this Agreement (Contract Expiration Date). Any extensions of the term of this Agreement beyond 36 months will require the Department’s approval in its discretion and a signed written amendment to this Agreement.

B. Expenditure Deadline: All costs to be reimbursed with Program funds shall be incurred no later than 33 months (two (2) years and nine (9) months) from the final Department execution date of this Agreement as identified on the STD 213 form.

Costs incurred after the Expenditure Deadline are not eligible for reimbursement.

C. Reporting Deadlines: All activities except activities in support of new housing construction and activities in support of economic development must report final beneficiaries no later than the Contract Expiration Date. Any extensions of the City of Crescent City
24-CDBG-10004

EXHIBIT A
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
Reporting Deadline will require the Department’s approval, in its discretion, and a signed written revision to this Agreement.

For activities in support of new housing construction and economic development where housing units or jobs are dependent on off-site infrastructure development, the activity shall have an extended reporting term of up to two years (24 months) from the Contract Expiration Date deadline to complete reporting of units constructed and occupied or jobs created or retained. Activities that do not meet the reporting deadline will be deemed ineligible and the Grantee will be required to repay all CDBG grant and CDBG Program Income funds, as applicable, expended on the activity.

6. Milestones
Grantee shall timely adhere to project milestones as established in Exhibit E.

A. Failure to Meet Milestones:
1) Failure to meet the first milestone identified in Exhibit E, is a material breach and will result in a for-cause termination of this Agreement. All funds, including program income, reimbursed for this activity prior to the termination shall be returned to the Department no less than thirty (30) days from the written notification of termination.
2) Failure to meet any given subsequent milestones identified in Exhibit E, may result in loss of program eligibility and will restrict the Grantee from applying for additional CDBG funding until the activity is corrected and put back on schedule, or the activity is completed, or the activity is canceled.

7. Contract Amendments
A. Contract Amendments: Adjustments to Exhibit E shall require a Contract Amendment. Contract Amendments must be fully executed by both the Grantee and the Department prior to implementation. Adjustments may not be implemented prior to execution unless the Department has provided written notice authorizing the Grantee to proceed.

B. HUD Matrix Codes: If HUD changes an activity matrix code(s) or if there is an error in recording the activity code, the Grantee shall be notified in writing and the correction shall not require an amendment to this Agreement.

City of Crescent City
24-CDBG-10004

EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025

BUDGET DETAIL AND PAYMENT PROVISIONS

1. Budget
A. Total Award Budget: The funded activity(ies) shall follow the “Total Award Budget” as shown in Exhibit E and detailed in the Department-approved Application, incorporated herein by reference.

B. Program Income: All Program Income is state-administered CDBG funding and is subject to the same federal requirements for financial administration as open grant awards. Program Income, including both cash-on-hand and future projected receipts, if identified as a funding source for any given activity, must be included in the activity budget and must be substantially expended prior to drawing grant award funds. Program Income must be identified separately from grant funds in the activity budget and must be broken out into activity and general administration funding, as applicable. The Department will not encumber locally administered Program Income against NOFA grant funds in the state’s accounting system. Only new grant awards made under a NOFA or in conjunction with an Urgent Need application will be encumbered in the state’s accounting system.

C. Funding in this Agreement may include either or both:
1) the total new grant award from the NOFA to be encumbered by the Department from grant funds,
2) total locally held Program Income to be included in the activity budget but that will not be encumbered by the Department. This Agreement is for the sum total of funds to be used in the activity including grant funds and Program Income, as applicable. Program Income receipts must be reported as receipted no less than monthly.

D. Other Non-State CDBG Funding Sources: The Grantee shall report on the value of other contributions included as leverage for each activity via the Financial Reports narrative section required for such activity and provide supporting documentation.

The Financial Reports shall be accessed through the online grant management system and are the reports which convey the information needed to complete financial transactions in HUD’s Integrated Disbursement and Information System (IDIS).

2. Availability of Funds
The Department’s provision of funding to Grantee pursuant to this Agreement is contingent on the continued availability of CDBG funds and continued federal and state authorization City of Crescent City
24-CDBG-10004

EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
for CDBG activities, as well as the conditions set forth in Exhibit D. The Department’s provision of funding is subject to amendment or termination due to lack of funds or authorization. This Agreement is subject to written/ modification or termination as necessary by the Department in accordance with requirements contained in any future state or federal legislation and/or state or federal regulations and guidelines, as the same may be amended from time to time. All other modifications must be in written form and approved by both parties.

3. Eligible Costs
No activity costs may be incurred, or funds reimbursed until the Grantee has documented compliance with the applicable National Environmental Policy Act (NEPA) requirements established in 24 CFR 50, 24 CFR 58, and 42 U.S.C. 4321, et seq., and an authorization to incur costs from the Department has been received or the contract has been fully executed.

A. Allowable Costs: Allowable costs shall mean those necessary and proper costs under 2 CFR 200.400 through 475, and as identified in the Grantee’s Application and as detailed in Exhibit E, and as approved by the Department unless any or all such costs are disallowed by the State of California or HUD. Allowable costs include necessary and proper activity and administration costs incurred prior to the execution of this Agreement. All costs incurred prior to the execution of this Agreement must be eligible to be considered allowable and suitable for reimbursement subject to review and approval by the Department in its sole and absolute discretion. Eligible costs must, at a minimum, be costs incurred according to the procurement requirements of 2 CFR 200.317, et seq. and be costs required for the activity in this Agreement to meet a National Objective.

B. Priority of Funds: The Grantee agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. To the extent available, the Grantee must disburse funds available from locally held CDBG grant resources such as, but not limited to Program Income, rebates, refunds, contract settlements, audit recoveries, and interest earned on such funds before requesting additional cash payments from the grant award.

C. Withholding Funds: The Department reserves the right to withhold payments pending timely delivery of program reports or documents as may be required under this Agreement. Payments are contingent upon the Grantee's and its Subrecipient’s financial management system meeting the requirements of 2 CFR 200.302 and the internal control requirements of 2 CFR 200.303. Payments to the Grantee may be City of Crescent City
24-CDBG-10004

EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
suspended or terminated, in whole or in part, by the Department in its sole discretion in the event of a default by Grantee or its Subrecipients.

D. Disencumbering Funds: The Grantee agrees that funds determined by the Department to be surplus upon completion of the activity, the funds that are not able to be spent in their entirety prior to the Expenditure Deadline or that have not been drawn prior to the Contract Expiration Date will be subject to disencumberance by the Department in its sole and absolute discretion.

E. Indirect Costs: If Grantee wishes to charge for indirect costs, the Grantee must present an indirect cost allocation plan approved by a federal agency determining the appropriate CDBG share of such indirect costs and present such plan to the Department prior to submission of requests for any payments for the indirect cost expenditures.

F. Pre-Agreement Costs: Pre-Agreement Costs are eligible costs incurred prior to the award of funds as defined in Exhibit D. Eligible Pre-Agreement costs as identified in the Application, may only be reimbursed upon the full execution of this Agreement and verification that the costs meet all eligibility criteria and are reasonable and necessary. Pre-Agreement costs may include both activity delivery and general program administration.
1) The Grantee agrees that any Pre-Agreement costs not previously identified in their Application will not be paid with CDBG funds.

4. Method of Payment
The Department will not authorize payments unless it has determined the costs incurred are in compliance with the terms of this Agreement. Payments will be issued to the agency identified on the Taxpayer Identification Form (TIN) provided by the Grantee to the Department.

A. Reimbursements: The Department will reimburse the Grantee its allowable costs for the services identified in this Agreement in Exhibit E, upon presentation of a financial reporting form, and supporting documentation of the cost eligibility. The Grantee may not request reimbursements under this Agreement until the funds are needed for payment of eligible costs. The amount of each request must be limited to the amount documented as having been incurred.
1) To receive reimbursement for grant activities, including reimbursement for eligible Pre-Agreement costs, the Grantee must submit all Department required forms according to the applicable deadlines. Financial Reports and City of Crescent City
24-CDBG-10004

EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
Activity Reports are due no less than quarterly, within 15 days of the end of the quarter, or as otherwise approved by the Department. Financial Reports and Activity Reports may be submitted more frequently at the Grantee’s discretion.
a) Financial Reports shall include the level of documentation specified by the Department, including proof of expenditure and proof of cost eligibility. Grantees must submit documentation supporting cost amounts and cost eligibility with each funds request as part of the Financial Report.
2) Grantees shall submit Financial Reports no less than quarterly. If no funds have been expended, the Grantee shall provide a detailed description of work completed during the reporting period, an explanation of why no funds have been expended, and anticipated date when funds will next be requested.

B. Advances: The Grantee must receive prior written approval from the Department before submitting an advance request. All advances are subject to the Department’s approval, which may be given or withheld on its sole discretion. No advances will be issued prior to full Agreement execution.

C. Final Payment Requests:
1) Grantees on the Reimbursement Payment System: All requests for final reimbursement must be submitted no later than sixty (60) days after the Expenditure Deadline as defined in Exhibit A of this Agreement. 2) Grantees on the Advance Payment System: The last advance funds request must be submitted to the Department no later than sixty (60) days prior to the Expenditure Deadline as defined in Exhibit A of this Agreement.

D. Return of Unexpended Funds: All funds received by the Grantee, but not expended by the Expenditure Deadline, must be accounted for and returned to the Department within thirty (30) days after the Expenditure Deadline. Funds shall be returned in accordance with the current State procedural guidance for Grantees. All returned funds will be disencumbered.

E. All Funds Not Previously Requested: If the final funds disbursement request for costs expended during the term of this Agreement has not been received by the Department within 60 days following the Expenditure Deadline as defined in Exhibit A of this Agreement, the Department may disencumber any funds remaining and grant funds will no longer be available for the Grantee.

City of Crescent City
24-CDBG-10004

EXHIBIT B
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025

5. Budget Amendments
Budget adjustments may be made in accordance with the following:

A. Budget Amendments: Adjustments to the budget that result in an increase or a reduction of the total award budget as shown in the STD 213 shall require a Contract Amendment. Contract Amendments must be fully executed by both the Grantee and the Department prior to implementation. Adjustments may not be implemented prior to execution unless the Department has provided written notice authorizing the Grantee to proceed.

6. Grant Closing Requirements
A. Expenditure Deadline: All costs to be reimbursed with Program funds must be incurred no later than 33 months (two (2) years and nine (9) months) from the final Department execution date of this Agreement as identified on the STD 213. 1) The final Financial Report for the activity must be submitted within sixty (60) days following the Expenditure Deadline as defined in Exhibit A. Financial Reports submitted after this date will not be eligible for reimbursement.

B. Closeout Procedure: The Grantee must follow closeout procedures outlined in the published Closeout chapter of the Grants Management Manual, which may be amended from time-to-time, at the time of closeout.

C. Extended Reporting Period: If the Grantee identified an extended reporting period will be required to meet the National Objective for the activity in the Application, the above closeout requirements shall be submitted upon the completion of the activity, or within twenty-four (24) months after the Contract Expiration Date, whichever comes first. If no extended reporting period is required, the above closeout requirements shall be submitted upon the completion of the activity or no later than the Contract Expiration Date. Upon receipt of the above documentation, the Department will close out this Agreement and finalize the activity in IDIS for final reporting to HUD.

D. Ongoing Reporting: Grants that have been closed may, as applicable, have continued reporting requirements, including Program Income reporting, performance reporting, beneficiary reporting, asset reporting, and other federally required reports as identified in Exhibit D.

City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025

CDBG PROGRAM TERMS AND CONDITIONS
Federal Grant Identification
CFDA Number: 14.228

1. Definitions
A. "Activity" means one or more of the following HUD eligible activities as per 42 U.S.C. 5305, and as outlined in Exhibit E.
1) Acquisition (5305 (a)(1))
2) Public Improvements (5305 (a)(2))
3) Public Facilities (5305 (a)(2) and (5))
4) Code Enforcement (5305 (a)(3))
5) Housing Rehabilitation (5305 (a)(4))
6) Public Services (5305 (a)(8))
7) Planning and Technical Assistance (Section 105 (a)(12), (14) and (19)) 8) Business Financial Assistance (5305 (a)(17))
9) Microenterprise Assistance (5305 (a)(22))
10)Homeownership (5305 (a)(24))
B. "Activity Delivery" (AD) means any reasonable and necessary costs that are not directly related to labor and/or direct construction and/or direct activity implementation costs. These costs must be cost reasonable and directly tie to the completion of the activity to meet a National Objective.

C. “Activity Reports” are the activity reports that must be submitted at least quarterly that describe program or project progress and/or beneficiaries served during a given reporting period.

D. “Department” means the California Department of Housing and Community Development.

E. "Funds Request" is also identified as a Financial Report and refers to the forms and processes required to request the drawdown of CDBG funds. Grantees shall submit Financial Reports no less than quarterly. If no funds have been expended, the Grantee shall provide a detailed description of work completed during the reporting City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
period, an explanation of why no funds have been expended, and anticipated date when funds will next be requested.

F. "General Administration" refers to eligible administrative expenses as provided in 42 U.S.C. 5305(a)(13).

G. “Grantee” means the jurisdiction that applied for CDBG funding and has legal authority to sign this Agreement and commit to compliance with all federal requirements regarding the administration of federal funds, as identified in 2 CFR 200.

H. “Pre-Agreement Costs” are pre-award costs as defined at 2 CFR 200.458 and 24 CFR 570.489(p) and are costs that are eligible per 2 CFR 200.400, et.seq. that have been detailed in the Application and as referenced in Exhibit B.

I. "Program" means an eligible activity that provides direct assistance to eligible participants within a defined service area. Programs include public services, housing assistance to households, and instances where an eligible person, household, or area is directly assisted with a unit of service.

J. “Program Guidelines” means the CDBG Program Guidelines adopted in October 2019 that replaced the California state regulations regarding the operation of the State CDBG program, as per Health and Safety Code 50826.1(a) that states that the regulations are repealed upon adoption of guidelines.

K. “Program Income”, as defined in 24 CFR 570.489(e), means gross income received by the Grantee that is directly generated from the use of CDBG funds. When such income is generated by an activity that is only partially assisted with CDBG funds, the income shall be prorated to reflect the percentage of CDBG funds used.

L. "Project" means eligible capital improvements to public facilities, infrastructure, assets, and right-of-way. Projects may also include eligible capital improvements to privately owned facilities, infrastructure, and assets that serve the public or that provide a public good including shelters, community-based facilities, and utilities.

2. Eligible Activities
Grantee will only use funds under this Agreement for the activity identified in Exhibit E. All activities must be eligible CDBG activities as authorized under 42 U.S.C. 5305 and 24 CFR 570.482.

3. National Objectives
City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
Grantee will only use funds in support of the National Objective identified in Exhibit E. All CDBG funded grant activities must meet a National Objective as defined in 42 U.S.C. 5304(b)(3), as amended, and 24 CFR 570.483.

4. Termination and Remedies for Noncompliance
Awards as secured by this Agreement may be terminated by the Department in whole or in part as per federal regulation at 2 CFR 200.339. All terminations shall include written notification setting forth the reason(s) for such termination, the effective date, and the portion to be terminated in the case of partial terminations and will follow termination notification requirements identified in 2 CFR 200.340.

A. Termination without Cause: Agreements may be terminated without cause in whole or in part by the Department only with the consent of the Grantee. In the case of a whole agreement termination, the two parties shall agree upon termination conditions, including the effective date. In the case of partial termination, the two parties shall agree upon termination conditions, including the portion to be terminated and the effective date.

B. Noncompliance and Termination with Cause: The Department may terminate this Agreement for Grantee’s failure to comply with the terms and conditions of this Agreement. Terminations for material failure to comply with the Agreement terms and conditions must be reported by the Department to the appropriate federal program integrity and performance system accessible through the System for Award Management (SAM) as per 2 CFR 200.339.
1) The Department may initiate remedies for noncompliance as identified in 2 CFR 200.339 at any time it has been determined that the Grantee, its agencies or instrumentalities, Subrecipients, and contractors is no longer meeting the terms and conditions of this Agreement. Remedies for noncompliance may be required in addition to, in lieu of, or prior to termination.
2) Prior to terminating this Agreement for cause or noncompliance, the Department shall submit written notice specifying noncompliance and/or specifying the event or events that if not cured would constitute an event of default. The Department’s written notice shall identify remedies for cure.

Grantee shall have thirty (30) calendar days from receipt of notice to fully cure. This period may be extended at the Department’s discretion for a reasonable period of time if the Grantee is acting in good faith to cure the City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
noncompliance or cause. Any extension of the cure period must be communicated in writing by the Department.
3) The Department’s remedies for noncompliance by the Grantee, its agencies or instrumentalities, Subrecipients, and/or contractors with a federal statute or regulation; a state statute, regulation, or guideline; the terms or requirements of any Notice of Funding Availability, Award Letter, or other program-related requirements may include, as appropriate:
a) Temporarily withhold cash payments pending correction of the deficiency by the Grantee.
b) Disallow (that is, deny use of funds) all or part of the cost of the activity or action not in compliance.
c) Wholly or partly suspend or terminate the current award for the Grantee’s program or project, as applicable.
d) Withhold further and/or future awards of CDBG funds. e) Request that HUD initiate federal suspension debarment proceedings. f) Take other remedies that may be legally available, including, but not limited to:
i) In the case of costs incurred without meeting a National Objective, require repayment of all funds reimbursed, including General Administration, Activity Delivery, and any and all Program Income, as appropriate.
4) In taking an action to remedy noncompliance, the Department will provide the Grantee an opportunity for such hearing, appeal, or other administrative proceeding to which the Grantee is entitled under any statute or regulation applicable to the action involved as per 2 CFR 200.341 and 2 CFR 200.342.

C. Effects of Suspension and Termination: Grantee costs resulting from obligations incurred by the Grantee during a suspension or after termination of an Agreement are not allowable unless otherwise authorized by the Department in a written notice or as allowable under 2 CFR 200.342. Termination and remedies for noncompliance identified in this section do not preclude a Grantee from being subject to nonprocurement debarment and suspension requirements at 2 CFR 2424. CDBG funds may not be provided to excluded or disqualified persons pursuant to 24 CFR 570.489(l).

City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
D. Remedies: All remedies of the Department hereunder are cumulative and not exclusive and shall comply with 2 CFR 570.492(b) and 2 CFR 200.342.

E. Appeals: Any request to appeal HCD’s decision shall be reviewed for compliance with the Guidelines and the NOFA. All decisions rendered shall be final, binding, and conclusive, and shall constitute the final action of HCD.

5. Severability
A. If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of the Department, shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are, and shall be, deemed severable.

B. The Grantee shall notify the Department immediately of any claim or action undertaken by or against it which affects or may affect this Agreement or the Department and shall take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of the Department.

6. Waivers
No waiver or any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of the Department to enforce, at any time, the provisions of this Agreement or to require, at any time, performance by the Grantee of these provisions shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of the Department to enforce these provisions.

7. Uniform Administrative Requirements
A. The Grantee, its agencies or instrumentalities, and Subgrantees shall comply with the policies, guidelines and Administrative Requirements of 2 CFR 200 et seq., as applicable, as they relate to the cost principles, audit requirements, acceptance and use of federal funds.

B. Single Audit Compliance: Funds will not be disbursed to any Grantee identified by the State Controller's Office (SCO) as non-compliant with the Federal Single Audit Act, as described in the Uniform Administrative Requirements, Cost Principles, And Audit Requirements for Federal Awards at 2 CFR 200, Subpart F. No funds may be disbursed until compliance with the Uniform Administrative Requirements is demonstrated to the satisfaction of the Department.

City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
C. Accounting Standards: Grantee agrees to comply with, and administer the activity in conformance with, 2 CFR 200.300 et seq, and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.

D. Suspension and Debarment: By executing this Agreement, Grantee verifies and affirms that it has not been suspended or debarred from participating in or receiving federal government contracts, subcontracts, loans, grants, or other assistance programs.

8. Compliance with State and Federal Laws and Regulations A. Grantee, its agencies or instrumentalities, its Subrecipients, and its contractors shall comply with all local, state, and federal laws, statutes, and regulations, as well as policies and guidelines established by the Department for the administration of the CDBG program.

B. Grantee, shall comply with, and Grantee shall cause its Subrecipients to comply with, the requirements of 24 CFR 570.480 et seq., the Housing and Urban Development (HUD) regulations concerning State administered Community Development Block Grants, 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Final Guidance, as adopted by HUD at 2 CFR 2400, Title II of the Cranston-Gonzales National Affordable Housing Act (42 U.S.C. 12701 et seq.), and all federal regulations and policies issued pursuant to these regulations. The Grantee further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available.

9. Violence Against Women Act Reauthorization Act (VAWA) Grantee shall comply with the requirements in the Violence Against Women Act Reauthorization Act of 2022 including any reporting requirements.

10.Affirmatively Furthering Fair Housing
Grantee shall affirmatively further fair housing, in accordance with the Civil Rights Act of 1964 (42 U.S.C 2000 (a), et seq.), and the Fair Housing Act (42 U.S.C. § 3601, et seq.), U.S.C. § 5306, et seq. and California Health and Safety Code statute (Gov. Code section 65583, et seq.). Grantee shall comply with the Fair Housing Amendment Act of 1988 (Public Law 100-430).

11.Equal Opportunity Requirements and Responsibilities
City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
A. Grantee agrees that it undertakes hereby the same obligations to the Department that the Department has undertaken to HUD pursuant to the Department’s CDBG certifications. The obligations undertaken by Grantee include, but are not limited to, the obligation to comply with all applicable federal laws and regulations described in 24 CFR 570, Subpart K, and specifically with each of the following:

B. The Housing and Community Development Act of 1974 (Public Law 93-383) that authorized the CDBG program, as amended; and legislative changes contained in the Housing and Urban-Rural Recovery Act of 1983 that authorized the state administered CDBG program for non-entitlement communities; and the Architectural Barriers Act of 1968 (42 U.S.C. § 4151) that requires publicly funded facilities be accessible to the public;
C. Title VI of the Civil Rights Act of 1964 (Public Law 88-352) prohibiting discrimination based on protected class, as amended; Title VIII of the Civil Rights Act of 1968 (Public Law 90-284) prohibiting discrimination in housing, as amended; the Civil Rights Restoration Act of 1987 (Public Law 100-259) requiring expanded compliance with civil rights laws for jurisdictions receiving federal funding; Section 104(d) regarding relocation and displacement; and Section 109 of Title I of the Housing and Community Development Act of 1974 prohibiting discrimination in CDBG-funded programs, as amended; Section 504 of the Rehabilitation Act of 1973 prohibiting recipients of federal funds from discrimination against persons with disability; the Americans with Disabilities Act of 1990 prohibiting all public discrimination against persons with disabilities; the Age Discrimination Act of 1975 prohibiting age-based discrimination in federally funded activities; federal Executive Order 11063 prohibiting discrimination in disposition of properties owned or financed with federal funds, as amended by Executive Order 12259; and Executive Order 11246 regarding fair employment, as amended by Executive Orders 11375, 11478 and 12086; and HUD regulations heretofore issued or to be issued to implement these authorities relating to civil rights;
D. The Equal Employment Opportunity Act of 1972 that created the Equal Employment Opportunity Commission, Equal Employment Opportunity and Affirmative Action requirement (EEO/AA); Grantee shall, in all solicitations or advertisements for employees placed by or on behalf of the Grantee, state that it is an Equal Opportunity or Affirmative Action employer.

E. Affirmative Outreach
City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
1) Grantee must make known that the use of the facilities, assistance, and services are available to all on a nondiscriminatory basis. If it is unlikely that the procedures the Grantee, its agencies or instrumentalities, Subrecipients, and contractors intend to use to make known the availability of its facilities, assistance, and services will reach persons of any particular race, color, religion, sex, age, national origin, familial status, or disability, who may qualify for those facilities and services, the Grantee must establish additional procedures that ensure that those persons are made aware of the facilities, assistance, and services.
2) Grantee must take appropriate steps to ensure effective communication with persons with disabilities including, but not limited to, adopting procedures that will make available to interested persons information concerning the location of assistance, services, and facilities that are accessible to persons with disabilities. Consistent with Title VI and Executive Order 13166, Grantee is also required to take reasonable steps to ensure meaningful access to programs and activities for Limited English Proficiency (LEP) persons.

F. Equal Access for Disabilities
1) Grantee must provide a language access plan that makes appropriate accommodations for LEP interpretive services and services that support the visually impaired as required by Section 504 of the Rehabilitation Act of 1973, as amended; 29 U.S.C. 794; in conjunction with section 508 of the Rehabilitation Act of 1973, as amended; 29 U.S.C. 794(d); Section 255, of the Communications Act of 1934, as amended; 24 CFR Part 8, including sections

8.3 and 8.4; and 36 CFR Part 1194, 36 CFR 194.1, 36 CFR 1194.2, and Appendices B and C to Part 1194;
2) The California State Department of Rehabilitation maintains an Assistive Technology website with resources for services to achieve compliance with recognized standards for non-discriminatory accessibility.

G. Americans with Disabilities Act and Physical Accessibility Requirements 1) The Grantee shall ensure compliance with all applicable state and federal building codes and accessibility laws and standards. All developments shall adhere to the accessibility requirements set forth in: (i) California Building Code Chapters 11A and 11B; (ii) the federal Fair Housing Act (42 U.S.C. § 3601 et seq.) and its regulations at 24 CFR part 100 (particularly 24 CFR 100.205), and its design and construction requirements, including ANSI City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
A117.1-1986, and the Fair Housing Accessibility Guidelines, March 6, 1991, in conjunction with the Supplement to Notice of Fair Housing Accessibility Guidelines: Questions and Answers About the Guidelines, June 28, 1994; and (iii) the Americans with Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.) and its Title II and Title III regulations at 28 CFR parts 35 and 36; and Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794) and the implementing HUD regulations at 24 CFR Part 8.

H. Construction Standards/Requirements
1) All residential construction Projects, where applicable, must comply with the housing construction codes of the State of California. All units must meet these codes as well as any locally-adopted codes and ordinances. Housing construction codes for building in California follow federal and state laws, regulations, and adaptions for construction of single family and multifamily units. The State Housing Law Program within HCD continuously refines the building standards to ensure they comply with new or changing laws and regulations and develops statewide building standards for new construction of all building types and accessories. The State Housing Law Program also develops the building standards necessary to provide accessibility in the design and construction of all housing other than publicly funded housing.

The building standards are published as the California Building Standards Code under the California Code of Regulations, Title 24, and construction standards in the Standard Agreement must meet or exceed all applicable requirements for housing or building construction. Tribal Entities with Projects on Native American Lands are required to follow their own tribal building codes or the International Building Code.

12.Relocation, Displacement, and Acquisition
Grantee shall comply with the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, in 24 CFR 42, 49 CFR 24, and 42 U.S.C. 5304(d) as they apply to the performance of this Agreement. Grantee agree to comply with 24 CFR 570.606 relating to the acquisition and disposition of all real property utilizing grant funds and to the displacement of persons, businesses, non-profit organizations, and farms occurring as a direct result of any acquisition of real property utilizing grant funds.

13.Environmental Compliance
City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
A. Grantee shall comply with the Federal Water Pollution Control Act, as amended, 33 U.S.C.1251, et seq., as amended, and 33 U.S.C. 1318 relating to inspection, monitoring, entry, reports, and information, and all regulations and guidelines issued thereunder.

B. Grantee shall comply with the requirements of the Clean Air Act, as amended, 42 U.S.C. 7401, et seq.

C. Grantee shall comply with Environmental Protection Agency (EPA) regulations pursuant to 40 CFR 50 regarding air quality protections, as amended.

D. Grantee shall comply with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001). Grantee shall assure that for activities located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, that 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).

E. Grantee shall comply with the requirements of the Residential Lead-Based Paint Hazard Reduction Act of 1992 and Section 401(b) of the Lead-Based Paint Poisoning Prevention Act of 1971. Grantee 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 570.608, and 24 CFR 35, Subpart B. Such regulations pertain to all CDBG-assisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified 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 lead 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 required.

F. Grantee shall comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (54 U.S.C. 300101); the Archaeological and Historical Preservation Act of 1974 (Public Law 93-291); and the procedures set forth in 36 CFR 800; Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this agreement. Grantee shall also comply with federal Executive Order 11593 on the protection and enhancement of the cultural environment. In general, this requires concurrence from the State Historic Preservation Officer for all City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
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.

G. Grantee shall comply with all National Environmental Policy Act (NEPA) requirements as applicable to the performance of this Agreement as found in 24 CFR 50, 24 CFR 58, as applicable, and 40 CFR 1500 – 1508. However, Grantee shall not execute this Agreement nor receive reimbursement for pre-agreement eligible activity costs until they have successfully documented compliance with the applicable NEPA requirements, including public noticing and publishing.

H. This Agreement does not constitute a commitment of funds or site approval, and the commitment of funds or approval may occur only upon satisfactory completion of environmental review and receipt by the Grantee of an approval of the Request for Release Of Funds (RROF) and certification from the Department under 24 CFR 50, 24 CFR 58, and 40 CFR 1500 – 1508. The provision of any funds to the project is conditioned on the Grantee’s determination to proceed with, modify or cancel the project based on the results of the environmental review. The Grantee will not receive appropriate notice to proceed until they have successfully documented compliance with the applicable NEPA requirements, including public noticing and publishing.

14.Build America, Buy America (BABA)
Grantee should include the following Build America, Buy America (BABA) language in all contracts and agreements with Subrecipients, contractors, developers and subgrantees, and in any procurement bid/contract documents and ensure BABA compliance by subgrantees, developers and/or contractors.

A. The parties to this contract must comply with the requirements of the Build America, Buy America (BABA) Act, 41 U.S.C. 8301 note, and all applicable rules and notices, as may be amended, if applicable to the Grantee’s infrastructure project.* Pursuant to HUD’s Notice, “Public Interest Phased Implementation Waiver for FY 2022 and 2023 of Build America, Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance” (88 Financial Report 17001), any funds obligated by HUD on or after the applicable listed effective dates, are subject to BABA requirements, unless excepted by a waiver.
*The term “infrastructure project,” in this context, is defined in 2 CFR 184.3 and means any activity related to the construction, alteration, maintenance, or repair of infrastructure in the United States regardless of whether infrastructure is the primary purpose of the project.

City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025

15.Procurement
The Grantee shall comply with the procurement provisions in the CDBG Grants Management Manual and 2 CFR 200.317 – 200.327, Procurement Standards, as well as all other Administrative Requirements for Grants and Cooperative Agreements that are applicable to state, local, and federally-recognized Indian tribal governments as set forth in 2 CFR 200, et seq.

16.Procurement of Recovered Materials
A. Grantee shall comply with, and shall cause all Subrecipients and their respective contractors and subcontractors to comply with, Section 6002 of the Solid Waste Disposal Act of 1965, as amended by the Resource Conservation and Recovery Act.

Grantee shall cause all Subrecipients and their respective contractors and subcontractors to procure items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, unless the Grantee determines that such items:
1) are not reasonably available in a reasonable period of time; 2) fail to meet reasonable performance standards, which shall be determined on the basis of the guidelines of the National Institute of Standards and Technology, if applicable to the item; or
3) are only available at an unreasonable price.

B. This clause shall apply to items purchased under this Agreement or subsequent contract where:
1) the Grantee and the Grantee’s contractors purchases in excess of $10,000.00 of the item under this Agreement; or
2) during the preceding federal fiscal year, the Grantee and the Grantee’s contractors:
a) purchased any amount of the items for use under a contract that was funded with federal appropriations and was with a federal agency or a state agency or agency of a political subdivision of a state; and b) purchased a total of in excess of $10,000.00 of the item both under and outside that contract.

17.Contracting and Labor Standards
City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
A. Grantee shall comply with the Davis-Bacon Act (40 U.S.C. 3141-3148) and 29 CFR Subtitle A, Part 1 – 5, as applicable, to construction, alteration, and repair contracts over $2,000.00.

B. Grantee shall ensure that all contracts comply with the Anti-Kickback Act of 1986 (41 U.S.C. 51-58) that prohibits attempted as well as completed "kickbacks," which include any money, fees, commission, credit, gift, gratuity, thing of value, or compensation of any kind.

C. Grantee shall ensure all contracts comply with the Contract Work Hours and Safety Standards Act of 1962 (40 U.S.C. § 3702) which requires that workers receive overtime compensation at a rate of one and one-half (1-1/2) times their regular hourly wage after they have worked forty (40) hours in one week.

D. Grantee shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the Department for review upon request.

18.Prevailing Wages
A. Where funds provided through this Agreement are used for construction work, or in support of construction work, the Grantee shall ensure that the requirements of California Labor Code, Chapter 1, commencing with Section 1720, Part 7 [California Labor Code Sections 1720-1743] are met.

B. Where funds provided through this Agreement are used for construction work or in support of construction work, the Grantee shall also ensure that the federal requirements of the Davis Bacon Act codified at 40 U.S.C. 3141, et seq., as amended, pertaining to federal labor standards and compliance, are met and documented. Grantee recognizes that multiple labor standards (both state prevailing wage and federal Davis-Bacon Act) may apply to the project and both standards must be satisfied.

C. For the purposes of this requirement "construction work" includes, but is not limited to, rehabilitation, alteration, demolition, installation or repair done under contract and paid for, in whole or in part, through this Agreement. All construction work shall be done through the use of a written contract with a properly licensed building contractor incorporating these requirements (the "construction contract"). Where the construction contract will be between the Grantee and a licensed building contractor, the Grantee shall serve as the "awarding body" as that term is defined in the California Labor Code. Where the Grantee will provide funds to a third party that will enter into the construction contract with a licensed building contractor, the third party City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
shall serve as the "awarding body." Prior to any disbursement of funds, including but not limited to release of any final retention payment, the Department may require a certification from the awarding body that prevailing wages have been or will be paid.

D. The applicable wage rate determination on construction work will be the more restrictive of the rate prescribed in the California Labor Code Sections 1770-1784, or the Davis-Bacon Wage Determination.

19.The Training, Employment, and Contracting Opportunities for Business and Lower Income Persons (Section 3):

The Grantee shall comply with Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and implementing regulation at 24 CFR 75. The responsibilities outlined in 24 CFR75.19 include:

A. Implementing procedures designed to notify:
1) Section 3 workers about training and employment opportunities generated by Section 3 covered assistance and;
2) Section 3 business concerns about contracting opportunities generated by Section 3 covered assistance.

B. Notifying potential contractors for Section 3 covered projects of the requirements of 24 CFR 75, Subpart C and incorporating the Section 3 clause set forth below in all solicitations and contracts pursuant to 24 CFR 75.27.

Section 3 Clause
This is a HUD Section 3 construction contract. Contractors and subcontractors must address the Section 3 employment work hours benchmarks for Section 3 Workers and Targeted Section 3 Workers as established by the U.S. Department of Housing and Urban Development at 24 CFR Part 75:
a. This is a Section 3 covered project. Section 3 projects mean housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds $200,000. The project is the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and financing.

City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
b. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by the U.S. Department of Housing and Urban Development (HUD) assistance or HUD assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.
c. The parties to this contract will comply with HUD's regulations as set forth in 24 CFR Part 75, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 75 regulations.
d. The Contractor agrees or representative of workers with which the Contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the Contractor's commitments under this Section 3 clause and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.
e. The Section 3 requirements apply to all contractors and subcontractors performing work in connection with a Section 3 covered project. Contractor means any entity entering into a contract with (a) a recipient to perform work in connection with work in connection with a Section 3 project; or (b) a subrecipient for work in connection with a Section 3 project. Subcontractor means any entity that has a contract with a Contractor to undertake a portion of the contractor's obligation to perform work in connection with a Section 3 project.
f. The contractor agrees to include this Section 3 Clause in every subcontract subject to compliance with regulations in 24 CFR Part 75, City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 Clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR Part

75. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of regulations under 24 CFR Part 75. g. The Contractor acknowledges that subrecipients, contractors, and subcontractors are required to meet the employment, training, and contraction requirements of 24 CFR 75.19, regardless of whether Section 3 language is included in recipient or subrecipient agreements, program regulatory agreements, or contracts. h. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected, but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR Part 75 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR Part 75.
i. Noncompliance with HUD's regulations in 24 CFR Part 75 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts.
j. The Contractor agrees to submit, and shall require its Subcontractors to submit to them, annual reports detailing the total number of labor hours worked on the Section 3 Project, the total number of labor hours worked by Section 3 Workers, and the total number of hours worked by Targeted Section 3 Workers, and any affirmative efforts made during the quarter to direct hiring efforts to low- and very low-income persons, particularly persons who are Section 3 workers and Targeted Section 3 workers.

C. Facilitating the training and employment of Section 3 workers and the award of contracts to Section 3 business concerns by undertaking activities such as described in 24 CFR Part 75.25(b), as appropriate, to reach the goals set forth in 24 CFR Part

75.23 and in Federal Register Vol. 85, No. 189, page 60909, until superseded by HUD in a subsequent publication. As of September 29, 2020, the minimum Section 3 benchmark is twenty-five (25) percent or more of the total number of labor hours worked by all workers on a Section 3 project are Section 3 workers; and five (5) percent or more of the total number of labor hours worked by all workers on a City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
Section 3 project are Targeted Section 3 workers.

Documenting actions taken to comply with the foregoing requirements, the results of those actions taken and impediments, if any.

20.Contractors and Subrecipients
A. Grantee shall comply with 24 CFR 24 and shall not enter into any agreement, written or oral, with any contractor or Subrecipient without the prior determination that the contractor or Subrecipient is eligible to receive CDBG funds and is not listed on the Federal Consolidated List of Debarred, Suspended, and Ineligible Contractors.

B. Any agreement between the Grantee and any contractor or Subrecipient shall include the terms and conditions in Appendix II of 2 CFR 200.

C. Grantee shall ensure that any contract or subrecipient agreement includes clauses requiring the maintenance of workers’ compensation insurance, as applicable, as well as general liability insurance. Contract or subrecipient agreements must require that the Grantee is notified in the event that any required insurance is canceled, expired, or otherwise invalidated during the performance period of the contract or subrecipient agreement.

D. Grantee shall require that contractors and Subrecipients comply with the Drug-Free Workplace Act of 1988.

21.Requirements for Economic Development Activities
A. Public Benefit Standards for Economic Development Activities: Per 24 CFR 570.482 (e), (f), (g) and 570.483(b)(4), the Grantee must comply with federal underwriting standards and must meet the public benefit standards for all CDBG Economic Development activities under 42 U.S. 5305(a)(17). The use of public benefit standards is mandatory.

B. Anti-Job Pirating Certification: Pursuant to 24 CFR 570.482(h) CDBG funds may not be used to directly assist a business, including a business expansion, in the relocation of a plant, facility, or operation from one labor market area to another labor market area if the relocation is likely to result in a significant loss of jobs in the labor market area from which the relocation occurs. Job loss of more than 500 employees is always considered significant. Job loss of 25 or fewer positions is never considered significant.

22.Rights to Inventions Made Under a Contract or Agreement City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
Grantee shall comply with and require the following in contracts and subrecipient agreements:

A. If a Federal award meets the definition of “funding agreement” under 37 CFR 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of recipient or subrecipient must comply with requirements of 37 CFR 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulation issued by the awarding agency.

23.Prohibition Against Payments of Bonus or Commission
The assistance provided under this Agreement shall not be used in the payment of any bonus or commission for the purpose of:

A. Obtaining the Department's approval of the Application for such assistance or additional assistance; or,
B. Securing any other approval or concurrence of the Department required under this Agreement, Title I of the Housing and Community Development Act of 1974, or the State regulations or Program Guidelines with respect thereto; provided, however, that reasonable fees for bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not hereby prohibited if otherwise eligible as program costs.

24.Reporting Requirements
A. Requirements: During the term of this Agreement, the Grantee must timely submit all CDBG program reports required by the Department, including quarterly activity, financial, and Program Income reports; semi-annual labor and compliance reports; and other reports required by the Department or HUD. The Department reserves the right to request additional detail and support for any report made. Reports must be made according to the dates identified, unless otherwise specified at the discretion of the Department. The Grantee’s performance under this Agreement will be evaluated in part on whether it has submitted the reports and responded to Department inquires on a timely basis.

B. Reporting Period: Grantee shall submit reports quarterly, and as required for semiannual and annual reports, and shall continue to submit reports until such time that the activity is complete, a National Objective has been met, and beneficiaries have City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
been identified. The reporting period for this activity may extend beyond the Contract Expiration Date as defined in Exhibit A.

C. Final Activity and Financial Reporting Deadline: Grantee shall complete by deadlines shown in Exhibit B “Grant Closing Requirements.” D. Asset Reporting: Grantee shall report annually on the status of all assets (real and personal property, equipment, and vehicles) purchased in whole or in part with CDBG funds for no less than five years from the completion of the activity that generated the asset. Reporting shall continue until the property is disposed, fully depreciated, or, in the event of real property, the five-year commitment to a National Objective has been completed.

25. Fiscal Controls
Grantee shall be responsible for the internal control and monitoring of fiscal and programmatic/operational goals and procedures. The Grantee shall establish and maintain such fiscal controls and fund accounting procedures as required by federal regulations, or as may be deemed necessary by the Department to ensure the proper disbursal of, and accounting for, funds paid to the Grantee under this Agreement.

A. Deposit of Funds: Grantee shall maintain separate accounts within established bookkeeping systems for the deposit of CDBG funds. All cash advances must be deposited in an interest-bearing account; any interest earned in excess of $100.00 per year (which may be retained for related administrative expenses) must be returned at least quarterly to HUD via the Department. Deposits in minority banks are encouraged.

B. Fund Management: Grantee shall deposit funds in an account requiring two signatures for disbursement.

C. Fiscal Liability: Grantee shall be liable for all amounts which are determined to be due by the Department including, but not limited to, disallowed costs which are the result of Grantee’s, its agencies or instrumentalities, Subrecipient’s, and contractor’s conduct under this Agreement. Grantee shall be notified in writing and shall be permitted to respond regarding any controversy or proceeding between the Department and HUD arising from this Agreement.

D. Fiscal Records: All financial transactions must be supported by complete and verifiable source documents. Records shall provide a clear audit trail and shall be maintained as specified in this Agreement.

City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
E. Program Income: Any and all Program Income received by Grantee during the administration of this Agreement must be receipted and deposited into a separate Program Income account. Program Income funds may not be comingled with CDBG grant funds in a single account.

26.Reversion of Assets
A. Upon expiration of this Agreement, Grantee shall disencumber any CDBG funds, excluding Program Income, remaining in the contract at the time of expiration.

Further, any real property under Grantee’s control that was acquired and/or improved in whole or in part with CDBG funds (including CDBG funds provided to the Grantee in the form of a loan and Program Income) in excess of $25,000.00 shall be either:
1) Used to meet one of the National Objectives in 24 CFR 570 until five (5) years after expiration or closure of this Agreement, the length of time to be further prescribed by mutual agreement of the parties.
2) Disposed of in such manner that Grantee is reimbursed in the amount of the fair market value of the property at the time of disposition of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition and/or improvement of such property. The proceeds from such disposition is Program Income.

B. Real Property acquired in whole or in part with CDBG funds must be used to meet the same National Objective for which it was purchased for no less than five years from the expiration or closure of this Agreement. The Department may require a Use Restriction Agreement be recorded against real property acquired or improved in whole or in part with CDBG funds.

C. If the Grantee provides funds for the purchase or improvement of real property to a Subrecipient that is a private non-profit organization, that Subrecipient must further agree to a voluntary lien and/or restriction on above-referenced real property as to any CDBG funds received and that such lien and/or restriction will be notarized and recorded in the Office of the County Recorder where the real property is located, by no later than the Reporting Deadline, as defined in Exhibit A. The Grantee shall be responsible for ensuring that such lien and/or restriction is timely recorded against the real property.

27.Monitoring Requirements
City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
A. The Department shall perform a program and/or fiscal monitoring of the CDBG grant no less than once during the thirty-six (36) month expenditure period of this Agreement. The Grantee shall be required to resolve any monitoring findings to the Department’s satisfaction by the deadlines set by the Department to maintain program eligibility.

B. Grantees and applicable Subrecipients shall retain all books, records, accounts, documentation, and all other materials relevant to this Agreement for a minimum period of three (3) years after the Department notifies the Grantee the Department has closed out all applicable program years with HUD in accordance with the record retention requirements at 24 CFR 570.490(b) and (d).

C. Grantees and applicable Subrecipients shall permit the State, federal government, the state Bureau of State Audits, the Department, and/or their representatives, upon reasonable notice, unrestricted access to any or all books, records, accounts, documentation, and all other materials relevant to this Agreement for the purpose of monitoring, auditing, or otherwise examining said materials.

28.Inspections of Grant Activity
A. The Department reserves the right to inspect any grant activity(ies) performed hereunder to verify that the grant activity(ies) is being and/or has been performed in accordance with the applicable federal, state and/or local requirements and this Agreement.

B. The Grantee shall inspect any grant activity performed by contractors and Subrecipients hereunder to ensure that the grant activity(ies) is being and has been performed in accordance with the applicable federal, state and/or local requirements and this Agreement.

C. The Grantee agrees to require that all grant activity(ies) found by such inspections not to conform to the applicable requirements be corrected, and to withhold payment to its contractor or subcontractor, respectively, until it is so corrected.

29.Signs
If the Grantee places signs stating that the activity is funded with private or public dollars and the Department is also providing financing, it shall indicate in a typeface and size commensurate with the Department’s funding portion of the project that the Department is a source of financing through the CDBG Program.

30.Insurance
City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
A. The Grantee shall have and maintain in full force and effect prior to the start of work, and at all times during the term of this Agreement, all insurances that are specified in the Department’s Grants Management Manual for the specific components of the grant activity(ies) described in Exhibit E. Prior to the commencement of any work, Grantee shall provide to the Department acceptable proof(s) of insurance confirming the required insurance coverages are in effect and naming the Department as an additional insured, where applicable. No insurance policy may be cancellable on less than thirty (30) calendar days prior notice to the insured and the Department.

Grantees are responsible for requiring sufficient insurance, including but not limited to liability and workers compensation insurance and any applicable requirements under the Grants Management Manual, from all contractors and Subrecipients.

Grantees are recommended to be listed as an additional insured on policies held by contractors or Subrecipients for the implementation of this award. Where a Grantee insurance policy is required to be purchased specifically for the execution or implementation of the activity funded through this award, the Department must be listed as an additional insured on the declarations page of the policy.

B. Additional Coverages: In the event that Grantee, its agencies or instrumentalities, Subrecipients, and contractors will be engaging in any Hazardous Activity as part of the work contemplated by this Agreement, then the Grantee shall provide to the Department, prior to commencement of any such activity(ies), such insurance coverages in such forms and in such amounts as the Department may require in its sole discretion. Such coverages are in addition to all other insurance coverages required by this Agreement and shall be imposed on any subrecipient and/or contractor pursuant to the subrecipient agreement or contract. For purposes of the provision, the term "Hazardous Activity" includes the following: (a) the removal, storage, and/or transportation of any "hazardous material", as such term is defined under federal, state, or local law, ordinance, regulation, or guideline, (b) the removal, storage, or transportation of lead-based paint, (c) blasting, (d) any activity which by its nature is abnormally dangerous, and (d) any "ultrahazardous activity" as defined in California case law. In addition to providing proof of such required coverages, the party(ies) engaging in the Hazardous Activity(ies) shall procure, at its expense prior to the commencement of any work, all required permits, licenses, consents, and approvals that are required for the lawful conduct of such activities and shall provide adequate written proof thereof to the Department. No Hazardous Activity work may be commenced, or contracted for, prior to the provision of the required insurance coverages and licensure proof to the Department.

City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025

31.Anti-Lobbying Certification
Grantee shall comply with and require that the language of this certification be included in all contracts or subcontracts entered into in connection with this grant activity(ies) and that all Subrecipients shall certify and disclose accordingly. 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 31 U.S.C. 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000.00 and no more than $100,000.00 for such failure.

A. No federally appropriated funds have been paid 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 cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.

B. 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.

32.Conflict of Interest
Pursuant to 24 CFR 570.489(h), no member, officer, or employee of the Grantee, or its designees or agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercise or have exercised any functions or responsibilities with respect to CDBG activities assisted under this part, or who are in a position to participate in a decision making process or gain inside information with regard to such activities, including members and delegates to the Congress of the Unites States may obtain a financial interest or benefit from a CDBG assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to a CDBG assisted activity or its proceeds, either for themselves or those with whom they have business or immediate family ties, during their tenure, or for one (1) year thereafter. The Grantee shall incorporate, or cause to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of this section.

City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025

33.Obligations of Grantee with Respect to Certain Third-Party Relationships Grantee shall remain fully and primarily obligated under all of the provisions of this Agreement notwithstanding its designation of any third party or parties for the undertaking of all or any part of the Program with respect to which assistance is being provided under this Agreement to the Grantee. The Grantee shall comply with all lawful requirements of the Department necessary to ensure that the Program, with respect to which assistance is being provided under this Agreement to the Grantee, is carried out in accordance with the Department's Assurance and Certifications, including those with respect to the assumption of environmental responsibilities of the Department under Section 104(g) of the Housing and Community Development Act of 1974 [42 U.S.C. 5304(g)].

34.Energy Policy and Conservation Act
This Agreement is subject to mandatory standards and policies relating to energy efficiency which are contained in the California Energy Conservation Plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 89 Stat. 871).

35.State Contracting Manual Requirements (Section 3.11, Federally Funded Contracts (Rev. 06/23):

A. All contracts, except for State construction projects that are funded in whole or in part by the Federal government, must contain a thirty (30)-day cancellation clause and the following provisions:
1) It is mutually understood between the parties that this contract may have been written for the mutual benefit of both parties before ascertaining the availability of congressional appropriation of funds to avoid program and fiscal delays that would occur if the contract were executed after that determination was made.
2) This contract is valid and enforceable only if sufficient funds are made available to the State by the United States Government for the relevant program year for the purpose of this Program. In addition, this contract is subject to any additional restrictions, limitations, or conditions enacted by the Congress or to any statute enacted by the Congress that may affect the provisions, terms, or funding of this contract in any manner. 3) The parties mutually agree that if the Congress does not appropriate sufficient funds for the program, this contract shall be amended to reflect any reduction in funds.

City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
4) The Department has the option to invalidate the contract under the thirty (30) day cancellation clause or to amend the contract to reflect any reduction in funds.

B. Exemptions from provisions A.1 through A.4 above may be granted by the Department of Finance provided that the director of the State agency can certify in writing that Federal funds are available for the term of the contract.

C. California Government Code 8546.4(e) provides that State agencies receiving Federal funds shall be primarily responsible for arranging for Federally required financial and compliance audits, and shall immediately notify the Director of Finance, the State Auditor, and the State Controller when they are required to obtain Federally required financial and compliance audits.

D. Agencies that may be eligible for Federal Emergency Management Agency (FEMA) funding and/or reimbursements should consult the Governor’s Office of Emergency Services (Cal OES) on contract provisions required by Title 2 of the Code of Federal Regulations, Part 200.

36.False, Fictitious or Fraudulent Claims:

Warning: Any person who knowingly makes a false claim or statement to HUD or the Department may be subject to civil or criminal penalties under 18 U.S.C. 287, 1001 and 31 U.S.C. 3729.

A. Detecting, Preventing, and Reporting FRAUD
1) Fraud is a white-collar crime that has a devastating effect on the CDBG program because the CDBG program beneficiaries are victims of this crime when the CDBG program is abused.
2) HCD wants to stop any criminal assault on the CDBG program it administers, and in doing so all CDBG funds go to people it was designed to help and improve their living conditions.

B. Combatting Fraud
1) The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) is committed to protecting HUD’s programs, operations, and beneficiaries from dishonest individuals and organizations. 2) HUD cannot combat fraud alone.
3) HUD relies on HCD and CDBG NOFA applicants to combat CDBG program fraud. HUD also relies on applicants for, and people receiving, HUD benefits, City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
such as tenants receiving rental assistance, borrowers with HUD insured loans, or citizens having their communities restored using HUD grants. 4) The HUD OIG Hotline number is 1-800-347-3735, this is the primary means to submit allegations of fraud, waste, abuse, mismanagement or Whistleblower related matters for the CDBG program to the Office of Inspector General.
5) HUD OIG accepts reports of fraud, waste, abuse, or mismanagement in the CDBG program from HUD employees, anyone administering the CDBG program, anyone working in the CDBG program, contractors, and the public. 6) You can report mismanagement or violations of law, rules, or regulations by HUD employees or program participants.

C. Fraud, Waste and Abuse in the CDBG program and its operation may be reported in one of the following four (4) ways:
1) E-mail to: [email protected]
2) By Phone: Call toll free: 1-800-347-3735
3) By Fax: 202-708-4829
4) By Mail:

Department of Housing & Urban Development.

HUD OIG, Office of Investigation, Room 1200
Field Office
One Sansome Street|
San Francisco, CA 94104
(213) 534-2518
HUD OIG, Office of Investigation, Suite 4070
Regional Office
300 North Los Angeles Street
Los Angeles, CA 90012
(213) 534-2518

37.The California Whistleblower Protection Act (Title 2, Division 1, Chapter 6.5, Article

3.5, Gov. Code §§ 8548-8548.5)
City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
A. The California Whistleblower Protection Act authorizes the California State Auditor to receive complaints from state employees and members of the public who wish to report an improper governmental activity. An "improper governmental activity" is any action by a state agency or any action by a state employee directly related to state government that:
1) Violates any state or federal law or regulation, (e.g., Government Code 65302(c)&(g)-(h); Public Resources Code Section 71150 et seq.; 71350 et seq.),
2) Violates an Executive Order of the Governor (e.g., Executive Order N-8-23, N-06-19), a California Rule of Court, or any policy or procedure required by the State Administrative Manual or State Contracting Manual, or 3) Is economically wasteful or involves gross misconduct, incompetency, or inefficiency. Complaints received by the State Auditor are confidential, and the identity of the complainant may not be revealed without the complainant's permission, aside from to an appropriate law enforcement agency conducting a criminal investigation.

B. There are many ways to file a complaint:
1) By Telephone
You may call the Whistleblower Hotline at (800) 952-5665 to file a complaint by talking to one of the State Auditor's employees. The hotline generally is staffed Monday through Friday from 8:00 a.m. to 5:00 p.m. If you call when the hotline is not being staffed, or staff is occupied with other calls, you may leave a voicemail message requesting a return call.
2) By Mail or Facsimile
You may file a complaint in the form of a letter to the State Auditor addressed as follows:

Investigations
California State Auditor
P.O. Box 1019
Sacramento, CA 95812
Or you may fax the letter to the State Auditor at (916) 322-2603. 3) As an alternative, you may complete the electronic version of the complaint form (which is available on the State Auditor website at auditor.ca.gov), print it out, and return it by mail or facsimile as stated above.

City of Crescent City
24-CDBG-10004

EXHIBIT D
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
4) Online
Although the State Auditor does not accept complaints by e-mail, you may file a complaint online at https://www.auditor.ca.gov/contactus/complaint.

C. The State Auditor will not undertake an investigation unless there is a basis for believing that your complaint has sufficient merit to warrant spending resources on an investigation. Your complaint should therefore include:
1) A clear and concise statement of what you are alleging to be improper activity and why you believe it is improper.
2) The name or other information that clearly identifies the person you are alleging has acted improperly and the department where that person works. 3) The names and contact information for any witnesses who can confirm the truth of what you are saying.
4) Copies of any documents that will support what you are saying. (You should not submit original documents, as they cannot be returned.).

38.Indemnification
Grantee agrees to defend, indemnify, release and hold harmless the Department, its agents, officers, attorneys, employees, committees, successors and assignees from any and all claims, liabilities, judgments, damages, losses, attorney fees, expenses, costs, actions, or proceedings threatened, asserted, or brought against any of the foregoing individuals or entities related to or arising from the Grantee’s obligations and activities under this Agreement.

This indemnification shall include, but not be limited to, all damages, liabilities, judgments, claims, costs, expenses, attorney fees or expert witness fees that may be asserted by any person or entity, including the Grantee, except loss or liability suffered by the Department caused solely by the Department’s sole negligence or willful misconduct. If, for any reason any portion of the Agreement is held to be void or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect. The obligations of the Grantee shall be absolute and unconditional and shall survive the Grantee’s expenditure of Department funding.

Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
Award-Specific Terms and Conditions
Jurisdiction’s Name: City of Crescent City
Award Title: 2024 City of Crescent City
Total Award Budget: $1,800,000.00
x Total Grant Budget: $1,800,000.00
x Total Program Income Budget: (Cash-On-Hand and Future Anticipated): N/A o Cash-On-Hand PI: N/A
o Future Anticipated PI: N/A
Award Number: 24-CDBG-10004
Contract Administrator:
x Name: Eric Wier
x Title: City Manager
x Email Address: [email protected]
Program/Project 1
Sub Award Title 1: 2024 Crescent City Business Assistance Loan Program Scope of Work 1: The City of Crescent City will use CDBG funds for financial assistance to private for-profit businesses to (for example) acquire property, clear structures, build, expand or rehabilitate a building, purchase equipment, and/or provide operating capital.

Program/Project Matrix Code 1: 18A - ED Assistance to For-Profits Program/Project’s National Objective 1: LMJ - Low/Mod Job Sub Award Number: 24-CDBG-ED-10004-A1
Milestones:
x Milestone 1: Activity Initiation. Must be completed no later than 60 days from contract execution
x Milestone 2: Program Marketing to begin no later than 120 days from the effective date of the Standard Agreement. The City would like to ensure that the program is launched at a time of year that is conducive to small business availability with consideration given to
City of Crescent City
24-CDBG-10004

EXHIBIT E
Program Name: Community Development Block Grant (CDBG)
NOFA Date: 08/30/2024
Approved Date: 11/22/2024
Prep. Date: 5/5/2025
x Milestone 3: First round of loans to be fully executed by one year from the effective date of the Standard Agreement.
x Milestone 4: 100% of grant funds expended by the expenditure deadline, presumably 33 months from Standard Agreement execution.
x Milestone 5: Activity closeout (must be completed no later than 90 days after the Expenditure Deadline)
Program/Project 2
Sub Award Title 2: Pacific Pantry & Mobile Market 2024
Scope of Work 2: The City of Crescent City will use CDBG funds for costs associated with the operation of food banks, community kitchens, and/or food pantries, such as staff costs, supplies, utilities, maintenance, and insurance.

Program/Project Matrix Code 2: 05W - Food Banks
Program/Project’s National Objective 2: LMC - Low/Mod Clientele Sub Award Number: 24-CDBG-NH-10004-A2
Milestones:
x Milestone 1: Activity Initiation. Must be completed no later than 60 days from contract execution
x Milestone 2: First reporting and financial request 90 days after contract execution. x Milestone 3: Spend 50% of award by midpoint.
x Milestone 4: 100% of grant funds expended by the expenditure deadline, presumably 33 months from Standard Agreement execution.
x Milestone 5: Activity closeout (must be completed no later than 90 days after the Expenditure Deadline)
City of Crescent City
24-CDBG-10004

EXHIBIT E
Passthrough Agency: Report Date: 05/05/2025
Program: Requested By: Bridget Lacey
Project Name/Title: [email protected]
Org Name: City of Crescent City
Stage: Pre-Award
Budget Items
Category Title Description Units Unit Cost Extended Cost Direct Cost Indirect Cost GL Account Cost Share Type Activity 2024 Crescent City
Business Assistance Loan Program
0 $0.00 $0.00 $1,470,000.00 $0.00 $0.00 Direct Cost
Activity Delivery Activity Delivery 0 $0.00 $0.00 $0.00 $0.00 $0.00 Direct Cost Program Income - Cash on Hand (COH)
Program Income - Cash on Hand (COH)
0 $0.00 $0.00 $0.00 $0.00 $0.00 Direct Cost
Activity Pacific Pantry & Mobile
Market 2024
0 $0.00 $0.00 $290,000.00 $0.00 $0.00 Direct Cost
0 $0.00 $0.00 $1,760,000.00 $0.00 $0.00
General Administration General Administration 0 $0.00 $0.00 $40,000.00 $0.00 $0.00 Direct Cost General Administration GA from Program
Income - Cash on Hand (COH) ONLY
0 $0.00 $0.00 $0.00 $0.00 $0.00 Direct Cost
0 $0.00 $0.00 $40,000.00 $0.00 $0.00
Other
Category Title Description Units Unit Cost Extended Cost Direct Cost Indirect Cost GL Account Cost Share Type DO NOT USE DO NOT USE 0 $0.00 $0.00 $0.00 $0.00 $0.00 Direct Cost 0 $0.00 $0.00 $0.00 $0.00 $0.00
0 $0.00 $0.00 $1,800,000.00 $0.00 $0.00
Budget Report, Created by Bridget Lacey, [email protected], 05/05/2025Source: eCivis™ Portalhttp://www.ecivis.com/Other TotalGrant TotalActivityActivity TotalGeneral AdministrationGeneral Administration TotalOther Budget Report
California Department of Housing and Community Development2024 CDBG Main2024 City of Crescent City City of Crescent City
24-CDBG-10004

EXHIBIT E

CITY COUNCIL AGENDA REPORT
TO: MAYOR ALTMAN AND MEMBERS OF THE CITY COUNCIL
FROM: ERIC WIER, CITY MANAGER
BY: KELLY FEOLA, RECREATION AND EVENTS COORDINATOR
DATE: AUGUST 18, 2025
SUBJECT: SISTER CITY WORLD EXPO CITY REPRESENTATIVE
______________________________________________________________________ RECOMMENDATION:
• Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Authorize former Council Member / Mayor, Blake Inscore to represent the City of Crescent City, September 8-21, 2025, at the US-Japan Sister Cities World Expo in Osaka, Japan and all associated activities.

BACKGROUND:

Sister Cities International was created at President Eisenhower’s 1956 White House summit on citizen diplomacy, where he envisioned a network that would serve as a champion for peace and prosperity by fostering bonds between people from different communities around the world. Sister Cities International works to facilitate lifelong connections that help promote peace and prosperity through person-to-person “citizen diplomacy.”
In May of 2011, a 9.1 magnitude earthquake and the following 30-foot-high tsunami effected much of Rikuzentakta, Japan’s low-lying coastal areas and resulted in the devastating loss of life. This event also affected Crescent City which resulted in millions of dollars of damage to our Harbor and fishing fleet as well as the tragic loss of one life in Klamath. The City of Crescent City and Rikuzentakata, Japan formed a Sister City relationship April 16, 2018.

Since then, NBC has created a documentary about this unique relationship that was featured during the Olympics, shared business opportunities, multiple student cultural exchanges, a growth in US Japan relationships, and more importantly, improved our emergency preparedness, including the annual Kamome Festival.

Blake Inscore, was Mayor and part of the City Council that approved the Sister City relationship in 2018 with the City of Rikuzentakata, Japan. Through the years with his role of Mayor, Mayor Pro Tem, Council Member, and a founding member of the Kamome Foundation, he has been involved with this incredible Sister City journey from the beginning and has formed strategic and true friendships with our friends and colleagues in Japan.

This has and will continue to affect economic development, emergency preparedness, and tourism for our city and county for years to come.

ITEM ANALYSIS
An amazing opportunity to share this amazing story with the world is before us again as in September of this year, our Sister City story will be featured at the World’s Expo in Osaka, Japan. The attendance at the World’s Expo is expected to surpass 28 million people. From the United States, 90 cities will be represented, and California will have approximately 317 attendees. The USA Pavillion is in part being staffed by youth from Sister Cities International (SCI) where they have the opportunity to share and learn from each other while embracing the pavilion’s theme, “Imagine what we can create together.” In coordination with the Kamome Foundation a delegation of 29 people from Del Norte County will travel to Osaka to attend this event and to Rikuzentakata, Japan to celebrate our relationship.

On this worldwide stage, Blake Inscore will be a guest speaker telling our story of the Kamome boat and its impact on relationships between the US and Japan, its effect on our students’ cultural experiences and our efforts to learn from each other in times of disaster.

Mr. Inscore with his past experience and as a speaker is willing to officially represent the City of Crescent City during this trip if authorized by the Council.

FISCAL IMPACT
There will be no fiscal impact to the City of Crescent City.

STRATEGIC PLAN ASSESSMENT
• GOAL 1: SUPPORT QUALITY SERVICES, COMMUNITY SAFETY, AND HEALTH TO

ENHANCE THE QUALITY OF LIFE AND EXPERIENCE OF OUR RESIDENTS AND

VISITORS
o E: Target economic development improvements that provide additional benefit by enhancing the quality of life for residents
• GOAL 2: PROMOTE A THRIVING LOCAL ECONOMY
o D: Collaborate with other jurisdictions and non-profits to maximize regional effectiveness and amplify funding opportunities
o E: Create an environment that is conducive to attracting and retaining strong, sustainable businesses that reflect community needs and culture