16498.00100\41176150.1
1 CITY OF FONTANA
PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of June 14, 2023 by and between the City of Fontana, a public agency organized and operating under the laws of the State of California with its principal place of business at 8353 Sierra Avenue, Fontana, California 92335 (“ City”), and Social Work Action Group, a Corporation with its principal place of business at 301 N. Sp ring Street, Lake Elsinore, California 92530 (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as a “Party” and collectively as the “Parties” in this Agreement.
RECITALS
A. Cit
y is a public agency of the State of California and is in need of professional services for the following project:
P
rovide Street Outreach and Case Management Services to the Homeless Population of the City of Fontana (hereinafter referred to as “the Project”).
B. C
ity participates in the Emergency Solutions Grant program administered by the United States Department of Housing and Urban Development (“HUD”) under Subtitle B of Title IV of the McKinney -Vento Homeless Assistance Act (42 U.S.C. § 11371- 11378 et seq. ) as amended from time to time, Catalog of Federal Domestic Assistance Number 14.231, and the regulations promulgated thereunder (24 C.F.R. § 576 et seq .). Pursuant to the Emergency Solutions Grant program, City receives funds from HUD (“ESG Funds”) to be used to address the needs of homeless persons and persons at-risk of becoming homeless. Additionally, t he United
States Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the President signed it on March 27, 2020, authorizing $2.2 trillion in a variety of stimulus measures to prevent, prepare for, and respond to the COVID -19 pandemic. The law includes $2 billion for Emergency Solutions Grants (referred to as “ESG-CV”) entitlement communities.
C. City may enter into agreements with subrecipients to support the operation and use of the regional Homeless Management Information System (“HMIS”), and ESG and ESG-CV Funds may be used for Emergency Solutions Grant activities including street outreach, emergency shelter, homelessness prevention, and rapid re-housing assistance.
D. Consultant is duly licensed and has the necessary qualifications to provide such services, as required under this Agreement . City desires to hire Consultant to implement the Project using ESG and ESG -CV Funds for services that are eligible expenses under the Emergency Solutions Grant.
E. City’s hiring Consultant pursuant to this Agreement, and the fulfillment of the terms and conditions set forth herein, are in the vital and best interests of the City and the welfare of its residents, and in accordance with the purpose and provisions of the Emergency Solutions Grant program
F. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.
DRAFT
16498.00100\41176150.1
2 AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. S ervices .
Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.”
2. C ompensation.
a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B.” b. I n no event shall the total amount paid for services rendered by Consultant under this Agreement , inclusive of any extended term as allowed under Section 5, exceed the sum of Three Hundred Fifty -Seven Thousand, Six Hundred Ninety-Five Dollars and Zero Cents ($357,695.00). This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed; provided, however, that the City shall not be required to make any payments hereunder as reasonably necessary to ensure compliance with the ESG -CV Requirements, as set forth in Section 7(d). Payments to Consultant for work performed will be made on a monthly billing basis.
3. A dditional Work .
If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.
4. M
aintenance of Records .
Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City.
5. Ter m .
The term of this Agreement shall be from July 1, 2023 to June 30, 2024, unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement to renew this Agreement annually for no more than four (4) additional one- year terms should funding to continue the Project be available. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the City to proceed.
6. D
elays in Performance.
DRAFT
16498.00100\41176150.1
3 a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non - performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint.
b. Should such circumstances occur, the non- performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement.
7. C
ompliance with Law and ESG and ESG-CV Requirements.
a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.
d. C onsultant shall comply with the requirements of Subtitle B of Title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. § 11371-11378) as amended from time to time, the regulations promulgated thereunder (24 C.F.R. § 576 et seq. ), and the legal requirements set forth and referred to in Exhibit “ C” attached to this Agreement (“ESG Requirements”). The ESG and ESG-CV Funds shall only be used for expenses for the Scope of Services and allowable for ESG and ESG-CV Funds in accordance with the ESG Requirements.
8. Standard of Care
Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions.
In addition, Participant shall operate the Program and perform the services required for the Project in compliance with the ESG-CV Requirements.
9. A
ssignment and Subconsultant
Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.
10. I
ndependent Contractor
DRAFT
16498.00100\41176150.1
4 Consultant is retained as an independent contractor and is not an employee of City . No employee or agent of Consultant shall become an employee of City . The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided.
11. I nsurance . Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:
(1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX) exclusion deleted
(7) Contractual Liability with respect to this Agreement (8) Property Damage
(9) Independent Contractors Coverage
(iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
(v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City , and provided that such deductibles shall not apply to the City as an additional insured. b. A utomobile Liability
DRAFT
16498.00100\41176150.1
5 (i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City.
(ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
(iii) The policy shall give City , its officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City , the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention.
c. W orkers’ Compensation/Employer’s Liability
(i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self -insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.
(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section.
d. M
inimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:
Combined Single Limit
Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property
damage
Automobile Liability $1,000,000 combined single limit Employer’s Liability $1,000,000 per accident or disease (ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of DRAFT
16498.00100\41176150.1
6 any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. e. E vidence Required
Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25 -S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance.
f. P
olicy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration.
(ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss.
(iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims -made policy with a retroactive date subsequent to the effective date of this Agreement.
(iv) A ll required insurance coverages , shall contain or be endorsed to provide a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability.
Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
DRAFT
16498.00100\41176150.1
7 h. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
i. A dditional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
j. S
ubconsultant Insurance Requirements . Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section.
Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.
12. Indem
nification.
a. To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees DRAFT
16498.00100\41176150.1
8 and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.
b. If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance of “design professional” services (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.
13. C
alifornia Labor Code Requirements.
a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws . It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices ( Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1) . The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4. b. I f the services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor.
DRAFT
16498.00100\41176150.1
9 14. Verification of Employment Eligibility.
By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same.
15. R eserved.
16. Laws and Venue.
This Agreement shall be interpreted in accordance with the laws of the State of California.
If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California. 17 Ter mination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant.
18 Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City.
19. Organization
Consultant shall assign a Project Manager approved by the City. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City.
20. Li mitation of Agreement .
This Agreement is limited to and includes only the work included in the Project described above.
DRAFT
16498.00100\41176150.1
10 21. Notice
Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to:
CITY:
City of Fontana
8353 Sierra Avenue
Fontana, California 92335
Attn: Valerie Gonzales, Housing
Development Manager
CONSULTANT:
Social Work Action Group
301 N Spring Street
Lake Elsinore, California 92530
Attn: Monica Sapien
and shall be effective upon receipt thereof.
22. Thi rd Party Rights
Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.
23. E qual Opportunity Employment.
Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.
24. E
ntire Agreement
This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement.
25. S
everability
The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the remaining provisions unenforceable, invalid or illegal.
26. Successors and Assigns
This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, DRAFT
16498.00100\41176150.1
11 burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.
27. No n -Waiver
None of the provisions of this Agreement shall be considered waived by either P arty, unless such waiver is specifically specified in writing.
28. Ti me of Essence
Time is of the essence for each and every provision of this Agreement.
29. Cit y ’s Right to Employ Other Consultants
City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.
30. P rohibited Interests
Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of City , during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
[SIGNATURES ON FOLLOWING PAGE]
DRAFT
16498.00100\41176150.1
12 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT
CITY OF FONTANA
By:
Mathew C. Ballantyne
City Manager
SOCIAL WORK ACTION GROUP
By:
Monica Sapien
E xecutive Director
Attest:
By:
Germaine McClellan Key
City Clerk
Approved as to form:
Best Best & Krieger LLP
City Attorney
By: _____________________________
Phillip Burum
Deputy City Manager
IN COMPLIANCE WITH CONTRACT INSURANCE REQUIREMENTS
By: ______________________________
Rakesha Thomas
Human Resources & Risk Management Director
IN COMPLIANCE WITH PURCHASING AND CONTRACT ADMINISTRATION POLICIES/PROCEDURES
___________________________________
Chief Financial Officer
Purchasing Office
DRAFT
16498.00100\41176150.1
13 EXHIBIT A
Scope of Services
DRAFT
Social Work Action Group
Addressing the Homeless in the City of Fontana
FY 2023-2024 Strategic Plan
To
address the increase of unsheltered homeless individuals in the City of Fontana, Social Work Action Group (SWAG) has prepared a Strategic Plan of Action. The Strategic Plan specifically targets unsheltered individuals, families, and encampments to reduce the number of visible homeless residing in the City of Fontana. With the assistance of Fontana Police Department, SWAG will identify individuals and geographical areas of concern to prioritize our efforts. SWAG will provide consistent outreach and case management services to those most in need with the ultimate goal of permanent housing. SWAG will build upon our efforts from the last year in Fontana and continue to reduce the homeless population both visibly and documented through the annual Point-in-Time Count. Simultaneously, SWAG will engage, educate, and encourage the community of Fontana to collaborate efforts and spread the message of Responsible Compassion.
1. Census of unsheltered homeless
In every community, it is vital to conduct a thorough and comprehensive census of the unsheltered homeless population. City staff, Fontana Police Department, and SWAG will work together to accurately locate, identify, survey and track, through the creation of a by-name list. A comprehensive assessment will provide an in-depth look at the individual, the circumstances and incidents that led to homelessness, such as severe trauma(s). We will also detail one’s connections and support systems in the city to leverage those individuals and incorporate those resources. This information will be used to develop an individualized action plan. This will be done on an ongoing basis as new individuals enter the city.
2. Outreach to the unsheltered homeless
Street outreach must be intensive, consistent, and strategic and needs the partnership of law enforcement and successful utilization and navigation of systems of care; behavioral health, and substance abuse treatment. Our team is comprised of individuals with specialized backgrounds in behavioral health, substance abuse, and social work who have a fundamental understanding of human development and behaviors. When we develop an action plan, we follow a flow chart that directs our activities and interactions with the individual to achieve specific outcomes, both short and long term.
3. Trip Home/ Family Reunification
When an individual is found living on the streets of Fontana and wants to reconnect with family or a positive support system, we will initiate the Trip Home/ Family Reunification process. First, SWAG will contact the family/ support system to ensure they are willing to accept and house the individual. Next, the Family Reunification/ Trip Home request will be submitted to the SWAG Project Coordinator for approval. The SWAG Outreach Team will purchase a Greyhound bus ticket and ensure the individual boards the bus. SWAG team will contact the family or support system to confirm the individual made it to the destination. Finally, SWAG will submit a request for reimbursement for the cost of Greyhound bus ticket along with all applicable documentation.
DRAFT
Scope of Services
Social Work Action Group (SWAG) will work in conjunction with the City of Fontana to facilitate and lead the overall scope of homeless services for the City of Fontana. Full-time, 40 hours per week, Homeless Outreach team members will serve the project. The SWAG homeless services team will follow a Monday- Friday, 7:30am-4:30pm schedule. The term of services will be July 1, 2023-June 30, 2024. SWAG will provide the following activities and services:
Assist with the organization and facilitation of the Point-in-Time Count for January 2024. Respond to homeless service requests made by city staff, and law enforcement in a timely manner. Provide immediate crisis stabilization to those experiencing behavioral health, physical crisis and emergencies and connection to behavioral health and substance abuse treatment services. Case manage individuals that are in treatment and temporary living situations to help ensure they do not return to the streets.
All individuals encountered will be included in the by-name census for the City of Fontana. Facilitate trips home/family reunification utilizing bus trips for individuals wanting to reunite with an identified support system that is out of the Fontana area. Individuals found living on the streets will be assisted with obtaining admittance and transportation to emergency shelter, transitional and permanent housing options. Conduct San Bernardino County housing assessments (including VI-SPDAT when applicable) to unsheltered homeless individuals and families and provide navigation services. Facilitate community asset mapping for strategic coordination and alignment of community resources that serve at-risk/homeless population.
Connect homeless population to appropriate housing solutions throughout San Bernardino County. Provide support to the City of Fontana through trainings, presentations and sharing updates related to trends in regional homeless efforts.
Attend and participate in City Council meetings, as requested.
2023-2024 City of Fontana
Service Agreement
EXPENSE CATEGORY
FTE
Budget
Outreach & Case Management Services
Two (2) Outreach Specialist - 40 hrs. per week 2.0 $218,988 One (1) Case Manager - 40 hrs. per week 1.0 $109,494
Transportation Costs $12,000
Administration Costs (5%) $17,213
TOTAL BUDGET $357,695
DRAFT
16498.00100\41176150.1
14 EXHIBIT B
Schedule of Charges/Payments
Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Progress report will be located in the form included in this Exhibit B.
Consultant will inform City regarding any out-of-scope work being performed by Consultant. This is a time-and-materials contract.
DRAFT
Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 TOTAL Number of Persons assisted by Rapid Rehousing 0
Number of Persons assisted by Rental Assistance 0
Number of Persons assisted by Supportive/Case Management 0 Total Number of Unduplicated Persons assisted by project 0 Number of Individuals to Exit to Homelessness 0
Number of Individuals to Occupy Newly Constructed or Rehabilitated Permanent Housing 0 Number of Individuals to Occupy Newly Constructed or Rehabilitated Transitional Housing 0 Number of Seniors Assisted (65 and older) 0
Number of Veterans Assisted 0
Number of Disabled Persons Assisted 0
Number of Families with Minor Children Assisted 0
Number of Transition-Aged Youth (18-24) Assisted 0
NAVIGATION CENTERS
ACCOMPLISHMENTS
FY 2023-2024
DRAFT
16498.00100\41176150.1
15 EXHIBIT C
SUMMARY OF LEGAL REQUIREMENTS
In addition to the requirements set forth in other provisions of the Agreement, Consultant shall comply, and shall cause all Consultant Personnel to comply, with the following regulations and requirements insofar as they are applicable to the performance of the Agreement.1
1. Equal Opportunity and Nondiscrimination.
a. The requirements in 24 C.F.R. Part 5, Subpart A are applicable, including the nondiscrimination and equal opportunity requirements at 24 C.F.R. 5.105(a) and the housing counseling requirements at 24 C.F.R. 5.111. Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. 1701u, and implementing regulations at 24 CFR part 135 apply, except that homeless individuals have priority over other Section 3 residents in accordance with §576.405(c).
b. Affirmative outreach. Consultant shall make known that use of the facilities, assistance, and services are available to all on a nondiscriminatory basis. If it is unlikely that the procedures that the recipient or subrecipient intends to use to make known the availability of the facilities, assistance, and services will to 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 recipient or subrecipient must establish additional procedures that ensure that those persons are made aware of the facilities, assistance, and services. The recipient and its subrecipients 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, recipients and subrecipients are also required to take reasonable steps to ensure meaningful access to programs and activities for limited English proficiency (LEP) persons. c. Title VI of the Civil Rights Act of 1964, as amended, including Public Law 88-352 implemented in 24 C.F.R. Part 1. This law provides in part that no person shall, on the grounds of race, color, or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. In regard to the sale or lease of the Site, Consultant shall cause or require a covenant running with the land to be inserted in the deed and leases prohibiting discrimination under this Title, and providing that City and the United States are beneficiaries of and entitled to enforce such covenants. Consultant shall enforce such covenant and shall not itself so discriminate.
d. Fair Housing Act, Title VIII of the Civil Rights Act of 1968, as amended, including Public Law 90- 234. The Fair Housing Act provides in part that there shall be no discrimination in housing practices on the basis of race, color, religion, sex, and national origin.
The Fair Housing Act was amended in 1988 to provide protections from discrimination in any
1 This exhibit is a list and summary of some of the applicable legal requirements and is not a complete list of all Participant requirements. The description set forth next to a statute or regulation is a summary of certain provisions in the statute or regulation and is in no way intended to be a complete description or summary of the statute or regulation. In the event of any conflict between this summary and the requirements imposed by applicable laws, regulations, and requirements, the applicable laws, regulations, and requirements shall apply.
DRAFT
16498.00100\41176150.1
16 aspect of the sale or rental of housing for families with children and persons with disabilities. The Fair Housing Act also establishes requirements for the design and construction of new rental or for-sale multi -family housing to ensure a minimum level of accessibility for persons with disabilities.
e. Section 109 of Title I of the Housing and Community Development Act of 1974, as amended, including 42 U.S.C. 5301 et. seq. , 42 U.S.C. 6101 et. seq ., and 29 U.S.C. 794. This law provides in part that no person on the grounds of race, color, national origin, sex, or religion shall be excluded from participation in, be denied the benefits of, or otherwise be subject to discrimination under any activity funded in whole or part with funds under this Title. f. Section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, including 42 U.S.C. 5301 et. seq. This law provides in part that any grant under Section 106 shall be made only if the grantee certifies to the satisfaction of the Secretary of HUD that the grantee will, among other things, affirmatively further fair housing. g. Executive Order 11246, as amended. This order includes a requirement that grantees and subrecipients and their contractors and subcontractors not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. h. Executive Order 11063, as amended, including 24 C.F.R. Part 107.
This order and its implementing regulations include requirements that all actions necessary be taken to prevent discrimination because of race, color, religion, sex, or national origin in the use, occupancy, sale, leasing, rental, or other disposition of property assisted with Federal loans, advances, grants, or contributions.
i. Section 504 of the Rehabilitation Act of 1973, as amended. This Act specifies in part that no otherwise qualified individual shall solely by reason of his or her disability or handicap be excluded from participation (including employment), denied program benefits, or subjected to discrimination under any program or activity receiving Federal assistance. Consultant must ensure that its programs are accessible to and usable by persons with disabilities. j. The Americans with Disabilities Act (ADA) of 1990, as amended. This Act prohibits discrimination on the basis of disability in employment by state and local governments and in places of public accommodation and commercial facilities. The ADA also requires that facilities that are newly constructed or altered, by, on behalf of, or for use of a public entity, be designed and constructed in a manner that makes the facility readily accessible to and usable by persons with disabilities. The Act defines the range of conditions that qualify as disabilities and the reasonable accommodations that must be made to assure equality of opportunity, full participation, independent living, and economic self -sufficiency for persons with disabilities.
k. The Age Discrimination Act of 1975, as amended. This law provides in part that no person shall be excluded from participation in, be denied program benefits, or subjected to discrimination on the basis of age under any program or activity receiving federal assistance.
l. EEO/AA Statement. Consultant shall, in all solicitations or advertisements for employees placed by or on behalf of Consultant, state that it is an Equal Opportunity or Affirmative Action employer.
DRAFT
16498.00100\41176150.1
17 m. Minority/Women Business Enterprise. Consultant will use its best efforts to afford small businesses and minority and women -owned business enterprises the maximum practicable opportunity to participate in the performance of the Agreement. As used in the Agreement, the term “small business” means a business that meets the criteria set forth in Section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and “minority and women- owned business enterprise” means a business at least fifty -one percent (51%) owned and controlled by minority group members or women. For the purpose of this definition, “minority group members” are Afro -Americans, Spanish -speaking, Spanish- surnamed or Spanish- heritage Americans, Asian -Americans, and American Indians. Consultant may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation.
2. Environmental.
a. ESG activities are subject to environmental review by HUD under 24 C.F.R.
Part 50. The Consultant and City shall supply all available, relevant information necessary for HUD to perform for each property any environmental review required by 24 CFR Part 50. The Consultant shall also carry out mitigating measures required by HUD or select alternate eligible property. HUD may eliminate from consideration any application that would require an Environmental Impact Statement (EIS).
b. Consultant, its subrecipients, or any contractors of the Consultant or subrecipients, may not acquire, rehabilitate, convert, lease, repair, dispose of, demolish, or construct property for a project under this part, or commit or expend HUD or local funds for eligible activities under this part, until HUD has performed an environmental review under 24 C.F.R. Part 50 and the recipient has received HUD approval of the property. c. Air and Water. Consultant shall comply with the following regulations insofar as they apply to the performance of the Agreement: Clean Air Act, 42 U.S.C. 7401, et seq.; Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder; and the U.S. Environmental Protection City regulations pursuant to 40 C.F.R.
Part 50, as amended.
d. Flood Disaster Protection Act of 1973. Consultant shall assure that for activities located in an area identified by FEMA as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained. e. Lead-Based Paint. Consultant shall comply with the Lead-Based Paint Regulations referenced in 24 C.F.R. § 576.403, including 24 C.F.R. Part 35, et. al. f. Historic Preservation. Consultant shall comply with the historic preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 C.F.R. Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties and related laws and Executive Orders, insofar as they apply to the performance of the Agreement. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a federal, state, or local historic property list.
DRAFT
16498.00100\41176150.1
18 g. Limitation on Activities Pending Clearance. In accordance with 24 C.F.R. § 58.22 entitled “Limitations on activities pending clearance, “neither a recipient nor any Consultant in the development process, including public or private nonprofit or for -profit entities, or any of their contractors, may commit HUD assistance under a program listed in 24 C.F.R. § 58.1(b) on an activity or project until HUD or the state has approved the recipient’s Request for Release of Funds (RROF) and the related certifications have been approved. Neither a recipient nor any Consultant in the development process may commit non -HUD funds or undertake an activity or project that would have an adverse environmental impact or limit the choice of reasonable alternatives. Upon completion of environmental review or receipt of environmental clearance, City shall notify Consultant. HUD funds shall not be utilized before this requirement is satisfied. The environmental review or violation of the provisions may result in approval, modification of cancellation of the City Grant. If a project or activity is exempt under 24 C.F.R. §
58.34, or is categorically excluded (except in extraordinary circumstances) under 24 C.F.R. § 58.35(b), no RROF is required and the recipient may undertake the activity immediately after the City has documented its determination that each activity or project is exempt and meets the conditions specified for such exemption under this section by issuing a Notice to Proceed.
3. Uniform Administrative Requirements . The uniform administrative requirements described in 2 C.F.R. Part 200 apply to Consultant; and:
a. Program income may be used as matching contributions, subject to the requirements in §576.201; and
b. The disposition of real property for which ESG funds are used for major rehabilitation, conversion, or other renovation under §576.102 is governed by the minimum period of use requirements under §576.102(c).
4. Program Requirements. Consultant shall carry out each activity under the Agreement in accordance with all applicable federal laws and regulations described in Subpart E of 24 C.F.R. § 576 except for City’s environmental responsibilities under 24 C.F.R. § 576.407(d) and City’s responsibility for initiating the review process under the provisions of 24 C.F.R. Part 5.
5. Reversion of Assets. Upon the expiration of the Funding Period or sooner termination of the Agreement, Consultant shall transfer to City (a) any and all CDBG Funds, (b) any accounts receivable attributable to the use of CDBG Funds. In all cases in which equipment acquired, in whole or in part, with funds under the Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to that funds received under the Agreement were used to acquire the equipment). Equipment not needed by Consultant for activities under the Agreement shall at the election of City either be (a) transferred to City for the CDBG program, or (b) retained by Consultant after compensating City an amount equal to the current fair market value of the equipment less the percentage of non-CDBG Funds used to acquire the equipment.
6. Relocation. City shall not be responsible for relocating any occupants from the Site in connection with the Program or Project. If required, Consultant shall have the sole and exclusive responsibility for providing relocation assistance and paying all relocation costs required to comply with all applicable federal and state laws, rules, and regulations, including the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. § 4601 et seq., as amended, and implementing regulations, and HUD Handbook 1378. Consultant shall indemnify, defend, and hold City harmless from and against any claims, liabilities, damages, or losses made against it by tenants or occupants of the Site, including without limitation claims for relocation assistance, inverse condemnation, and claims otherwise arising from any act or omission of Consultant pursuant to the provision of relocation assistance.
DRAFT
16498.00100\41176150.1
19 7. Allowable Costs and Audits . Consultant shall comply with and administer the Project and Program in accordance with the requirements of The Office of Management and Budget (OMB) “Super Circular” 2 CFR Part 200, which includes the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for federal awards, as applicable.
8. Records and Reports. Consultant shall provide to City and shall cause each of its contractors, subcontractors and subrecipients to provide to City all records and reports relating to the Project and Program that may be reasonably requested by City in order to enable it to perform its record keeping and reporting obligations pursuant to the CDBG Requirements, including but not limited to those described in the Agreement and 24 C.F.R. § 576.500.
9. Religious Organizations. If Consultant is a religious organization as defined by the ESG Requirements, Consultant shall comply with all conditions prescribed by HUD for the use of ESG Funds by religious organizations, including the First Amendment of the United States Constitution regarding church/state principles and the applicable constitutional prohibitions set forth in 24 C.F.R. § 576.406.
10. Conflict of Interest. Consultant will comply with 24 C.F.R. § 576.404 regarding the avoidance of conflict of interest, which provisions include (but are not limited to) the following:
i. Consultant shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds. ii. No e mployee, officer or agent of the Consultant shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. iii. No covered persons who exercise or have exercised any functions or responsibilities with respect to ESG -assisted activities, or who are in a position to participate in a decision- making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the ESG -assisted activity, or with respect to the proceeds from the ESG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a “covered person” includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the Grantee, the Consultant, or any designated public agency.
11. Anti-Lobbying Certification. By its execution of the Agreement, Consultant hereby certifies that:
i. No Federal 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 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. ii. 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 DRAFT
16498.00100\41176150.1
20 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. iii. It will 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.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. This certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S.C. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. At the request of City, Consultant shall execute a separate document that contains the certifications set forth above.
12. Drug-Free Workplace Requirements. Consultant shall comply with and be subject to the requirements of the federal drug -free workplace requirements, which include the following actions be taken:
i. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee’s workplace and specifying the actions that will be taken against employees for violation of such prohibition.
ii. Establishing an ongoing drug -free awareness program to inform employees about: (a) the dangers of drug abuse in the work place; (b) the grantee’s policy of maintaining a drug-free workplace; (c) any available drug counseling, rehabilitation, and employee assistance programs; and (d) the penalti es that may be imposed upon employees for drug abuse violations occurring in the workplace. iii. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (i). iv. Notifying the employee in the statement required by paragraph (i) that, as a condition of employment under the grant, the employee will: (a) abide by the terms of the statement; and (b) notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction.
v. Notifying the agency in writing, within ten (10) calendar days after receiving notice under sub-paragraph (iv)(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant.
vi. Taking one of the following actions, within thirty (30) calendar days of receiving notice under subparagraph (iv)(b), with respect to any employee who is so convicted: (a) taking appropriate personnel action against such an employee, up to and DRAFT
16498.00100\41176150.1
21 including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b) requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State or local health, law enforcement, or other appropriate agency. vii. Making a good faith effort to continue to maintain a drug -free workplace through implementation of paragraphs (i), (ii), (iii), (iv), (v), and (vi).
13. Procurement. Consultant will comply with the procurement standards under 2 C.F.R. §§ 200.317-200.326. Consultant shall comply with all existing and future City polici es concerning the purchase of equipment.
14. FY23 Domestic Preferences for Procurements. If the project that is the subject of the Agreement receives more than $250,000 of federal financial assistance, Consultant shall, to the greatest extent practicable under this Agreement, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including iron and steel). If applicable, this requirement shall be included in all subawards including all contracts and purchase orders for work or products paid for in whole or in part with CDBG funds. For the purposes of this requirement, “Produced in the United States” means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.
15. Labor Provisions.
a. Section 3 of the Housing and Community Development Act of 1968. If the Agreement provides more than $200,000 of CDBG funds for housing rehabilitation, housing construction, or other public construction, Consultant shall comply with and cause its contractors and subcontractors to comply with the requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. § 1701u), the HUD regulations issued pursuant thereto at 24 C.F.R, Part 75, and any applicable rules and orders of HUD issued thereunder. 24 C.F.R, Part 75 specifies that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State and local laws and regulations, be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons. The following benchmarks for the proportion of work hours by Section 3 workers and Targeted Section 3 workers, as defined at 24 C.F.R. Part 75.21:
i. 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 ii. Five (5) percent or more of the total number of labor hours worked by all workers on a Section 3 project are Targeted Section 3 workers.
It is the responsibility of contractors and subcontractors to implement efforts to achieve Section 3 compliance. Any contractor that does not meet the Section 3 benchmarks shall demonstrate in writing why meeting the benchmarks were not feasible. b. Labor Standards. Pursuant to 24 C.F.R. § 576.408, the provisions of the Davis-Bacon Act (40 U.S.C. 276a to 276a-5) do not apply to the ESG program.
DRAFT