Paradise City Council
March 12, 2024

EXHIBIT B
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
this Agreement and/or Approved Project Performance Milestones in the NTP are on track. Subrecipient may expend up to the indicated Activity Delivery amount as identified in the final, executed NTP, a sample of which is attached as Exhibit F hereto.
5) To receive reimbursement for Approved Project activities, the Subrecipient shall timely submit all required Department forms via Grants Network.

Financial Reports must include the level of documentation specified by the Department in the Department’s Grant Administration Manual located on the Department’s website, in order to be reviewed and processed.

B. Final Financial Reports
1) The final Financial Report for the Subrecipient Allocation must be submitted to the Department before the expiration of this Agreement as set forth in Section 2 of the STD 213.
2) If the final Financial Report for costs expended during the term of this Agreement has not been received by the Department before the agreement expiration date set forth in Section 2 of the STD 213, the Department may recapture any funds remaining in which case such Grant Funds will no longer be available to the Subrecipient.

4. Recapture of Funds
A Subrecipient may be required to repay all or a portion of the funds received from the Department, including Activity Delivery, pursuant to this Agreement. The reasons for a recapture of funds by the Department include, but are not limited to, the following:

A. The Subrecipient does not comply with the terms of this Agreement or any agreement executed by the Subrecipient and the Department in connection herewith or any Program rules, guidelines, policies, or procedures.

B. The Subrecipient withdraws voluntarily from the Program prior to completion of the Approved Project(s).

C. The Subrecipient fails to meet a National Objective for any Approved Project.

D. The taking of any action, or the failure to take any required action, by Subrecipient which results in HUD requiring the Department to repay, directly or indirectly, all or any portion of any Grant Funds provided to Subrecipient under this Agreement, regardless of when such action or failure to act occurred or

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
599
Town of Paradise
18-DRINFRA-18006

EXHIBIT B
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
when HUD demands repayment from the Department.

The potential recapture of funds pursuant to this provision is in addition to, and not in lieu of, any other rights and remedies of the Department under this Agreement, and Subrecipient’s obligations under this provision shall survive the completion and closeout of the Approved Project(s) and/or the expiration of this Agreement.

5. Project Budget Revisions and Amendments
Budget line item adjustments may be made in accordance with the following:

A. Project Budget Revisions: Adjustments to the Approved Project budget that do not require an increase or reduction of the total Approved Project budget, a change in National Objective, a change in project service location if the Approved Project service location is in a MID area, a change in Program Priority Level below its current Priority Level, a change in the NTP, or a change in the type and/or count of estimated beneficiaries assisted, may be completed as a Project budget revision. Project budget revisions shall include but not be limited to:
1) Adjustments that reallocate funds between budget line items, but that otherwise do not change the total allocation amount, the Project Work, the National Objective, the project service location to a non-MID area, the Program Priority Level and type and count of estimated beneficiaries.

2) Adjustments that increase or decrease the detail included in the submitted budget, including adding and removing budget line items, without increasing or decreasing the Project Work and without changing the total allocation amount.

Project budget revisions must be submitted through Grants Network and subsequently approved by the Department prior to implementation. Approval shall be provided through Grants Network.

B. Agreement Budget Revisions: Adjustments to the Subrecipient Allocation that result in an increased or a reduced total allocation amount shall require an Agreement amendment. Agreement amendments must be fully executed by both the Subrecipient and the Department in Grants Network prior to implementation.

6. Project Closeout Procedures
The Subrecipient must submit the following to the Department within 90 days of the completion of each Approved Project.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
600
Town of Paradise
18-DRINFRA-18006

EXHIBIT B
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
A. A Final Activity Report (Project Completion Report) that includes all required reporting data for the Approved Project, including but not limited to, eligible activities, costs, beneficiaries, and National Objective compliance.

B. A recorded Notice of Completion.

C. Relocation Report: A relocation report is required for those Approved Projects where relocation activities were undertaken pursuant to a Residential Anti-displacement and Relocation Assistance Plan (RARAP) (Section 2.3.21 of the DR-Infrastructure Policies and Procedures).

D. Final Labor Standards Report as described in Exhibit D(23)(A)(3) herein.

E. Evidence, satisfactory to the Department, of Subrecipient’s compliance with any other special conditions of this Agreement; and, F. A resolution from the governing body acknowledging the accomplishments of the Approved Project and confirming that the Approved Project is complete and that all Financial Reports have been timely processed and reimbursed.

Upon receipt of the above documentation, the Department will close the NTP and finalize the activity in Disaster Recovery Grant Reporting (DRGR) system for final reporting to HUD.

7. Document Retention Policy
Subrecipient shall retain all books, records, accounts, documentation, and all other materials relevant to this Agreement for a minimum period of five (5) years after the Department notifies the Subrecipient that the grant agreement between HUD and the State of California has been closed.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
601
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022

CDBG-DR TERMS AND CONDITIONS

1. Definitions
Activity Funds – means any eligible, reasonable, and necessary costs that are directly related to labor and/or direct construction and/or direct Project implementation costs which will meet a national objective as defined in 42 U.S.C. 5304(b)(3), as amended and 24 CFR 570.483.

Activity Delivery Funds - means any eligible, reasonable, and necessary costs for the implementation, management or oversight of a Project.

Activity Reports – Reports submitted by the Subrecipient that describe Approved Project progress and/or beneficiaries served during a given reporting period.

Approved Project – A Project that has been submitted to the Department and reviewed and approved with a Notice to Proceed to fund with the Subrecipient Allocation by the Department.

Area Median Income (AMI) - means the median family income for specific geographic areas, adjusted for household size, as calculated by HUD, and published annually by the Department at https://www.hcd.ca.gov/grants-and-funding/income-limits.

California Environmental Quality Act (CEQA) - The California statute that requires state and local agencies to identify the significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible.

Contractor - a properly licensed person or company who is procured competitively that Subrecipients hire to undertake a contract to provide materials or labor to perform a service or do a job for a Project.

Department – means the California Department of Housing and Community Development.

Disaster Recovery Grant Reporting System (DRGR) – The electronic system primarily used by the Department to access Grant Funds from HUD and report performance accomplishments for grant-funded activities to HUD. The DRGR system is used by HUD to review grant-funded activities, prepare reports to Congress and other interested parties, and monitor program compliance.

Duplication of Benefits (DOB) - Financial assistance received from another source that

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
602
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
is provided for the same purpose as the CDBG-DR funds, in accordance with Federal Register Notice 85 4681.

Eligible Expenses – Those necessary and reasonable costs under 2 CFR 200.400 through 475, and applicable notices and waivers, and as identified in the 2018 DRInfrastructure Policies and Procedures Manual, and as approved by the Department via a Notice to Proceed. Eligible Expenses do not include any costs which are disallowed or otherwise deemed ineligible by the State of California and/or HUD.

Financial Reports (Funds Requests) - the forms and processes required for a Subrecipient to request the drawdown of Grant Funds.

Grant Funds – The CDBG-DR funds allocated to the Subrecipient for the implementation of the DR-Infrastructure programs and eligible, Approved Projects.

Grant Funds include Activity Funds and Activity Delivery Funds.

Household - One or more persons occupying a housing unit.

HUD – The United States Department of Housing and Urban Development.

Indirect Costs - means those costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. To facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of indirect costs. Indirect cost pools must be distributed to benefitted cost objectives on bases that will produce an equitable result in consideration of relative benefits derived.

Indirect Cost Rate Proposal - means the documentation prepared by a governmental unit or subdivision thereof to substantiate its request for the establishment of an indirect cost rate as further defined in 2 CFR 200.56 and 2 CFR 200.57.

Infrastructure – means an infrastructure repair which is an eligible activity according to 42 USC 5305(a)(2), which authorizes the acquisition, construction, reconstruction, or installation (including design features and improvements with respect to such construction, reconstruction, or installation that promote energy efficiency) of public works, facilities (except for buildings for the general conduct of government), and site or other improvements.

Low- and Moderate- Income (LMI) – Low- and moderate-income people are those having incomes not more than the “moderate-income” level (80% Area Median Family Income) set by the federal government for the HUD-assisted housing programs. This

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
603
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
income standard changes from year to year and varies by household size, county and the metropolitan statistical area.

Master Standard Agreement (“Agreement”) – The contractual arrangement between the Department and the Subrecipient which sets forth the terms and conditions by which CDBG-DR funds must be utilized with regards to Approved Projects.

National Environmental Policy Act (NEPA) – The federal law and associated regulations which establishes a broad national framework for protecting the environment. NEPA's basic policy is to assure that all branches of government consider environmental and related social and economic effect prior to undertaking any proposed action. All HUDassisted projects are required to undergo an environmental review.

Notice to Proceed (NTP) – The NTP is a binding document, approved as to form as a component of the Agreement, that amends the allocation agreement between the Subrecipient and the Department by committing funds to a specific Project. A fully executed NTP is required for each Approved Project, and no work may be commenced, costs or expenses incurred, nor choice-limiting action(s) taken by Subrecipient prior to the execution of the NTP. The NTP includes, among other things, various Project details, including but not limited to the following: a description of the Approved Project and the permitted uses of program funds; the Approved Project budget and sources and uses of funds and financing; the approved schedule of the Project; the deadlines for the commencement and completion of construction or rehabilitation work; Performance milestones; Performance penalties; and any special conditions applicable to the Approved Project.

Project – Per 49 CFR 24.2(a)(22), project means any activity or series of activities undertaken by a Federal Agency or with Federal financial assistance received or anticipated in any phase of an undertaking in accordance with the Federal funding Agency guidelines. See DR-Infrastructure Policies and Procedures Section 1.2.

Subrecipient – A unit of local government receiving a direct allocation of Grant Funds from the Department for the purpose of funding Approved Projects to be carried out by the Subrecipient.

Subrecipient Allocation – The amount of Grant Funds allocated to the Subrecipient for Project Work.

Subrecipient Work – the scope of work required of the Subrecipient as set forth in section 3 of Exhibit A, and the scope of work required of an Approved Project(s) as set forth in its Notice(s) to Proceed.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
604
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
Urgent Need - The Urgent Need national objective requires that the project is designed to meet community development needs having a particular urgency. In the absence of substantial evidence to the contrary, a project is considered to address this National Objective if the design of the project is certified to alleviate existing conditions which pose a serious and immediate threat to the health or welfare of the community which are of recent origin or which recently became urgent, that the Subrecipient is unable to finance the activity on its own, and that other sources of funding are not available. A condition is generally considered to be of recent origin if it developed or became critical within 18 months preceding the certification by the Subrecipient.

Urgent Need Mitigation – [Reserved]

2. National Objectives
All DR-Infrastructure Projects approved under this Agreement must be eligible and as a CDBG-DR funded activity must meet a national objective as required under 24 CFR 570.200(a)(2). Under section 101(c) of the authorizing Act (42 U.S.C. 5301) the CDBG program must ensure that the funded activity meets one of the named national objectives. The two qualifying national objectives are:

A. Benefiting low- and moderate-income persons (LMI); and B. Meeting an Urgent Need.

Upon completion of the Approved Project(s) funded under this Agreement and prior to the funding expenditure deadline of this Agreement, the Subrecipient must document that the Approved Project(s) met either the LMI national objective or the Urgent Need national objective. The Department shall review the actual national objective achievements of the Subrecipient.

3. Duplication of Benefits
A Duplication of Benefits (DOB) occurs when a program beneficiary receives assistance from multiple sources for a cumulative amount that exceeds the total need for a particular recovery purpose. The amount of the duplication is the amount of assistance provided in excess of the need. It is the Department’s responsibility to ensure that DRInfrastructure provides assistance only to the extent that the disaster recovery need has not been fully met by funds that have already been paid, or will be paid, from another source.

The Subrecipient must report all funds obtained for the activity from any source from the date of the disaster until the Project is completed.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
605
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
Additionally, the Department, in coordination with the Subrecipient, will perform a check for DOB prior to issuing a Notice to Proceed to ensure that duplicative assistance is not provided for the Project. The Department also reserves the right to require that the Subrecipient perform additional DOB checks throughout the course of the Approved Project’s period/performance, up to and through the closeout of each Approved Project, to ensure there is no duplicative assistance throughout the course of the Approved Project. Any person who knowingly makes a false claim or statement to HUD may be subject to civil or criminal penalties under 18 U.S.C. Sections 287, 1001, and 31 U.S.C.

Section 3729.

The Subrecipient agrees to repay to the Department any assistance later received for the same purpose as the CDBG–DR funds and that exceeds the total need for the particular recovery purpose. The obligations of Subrecipient to repay the Department for any Duplication of Benefit shall survive the completion of the Approved Project(s) and the expiration or earlier termination of this Agreement.

4. Remedies and Termination for Noncompliance; Appeals
A. Remedies for Noncompliance: In addition to any other rights and remedies the Department may have under this Agreement, at law, or in equity, the Department may initiate remedies for noncompliance as identified in 2 CFR 200.338-.339 at any time it has been determined that the Subrecipient 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. Such remedies for noncompliance with a federal statute or regulation, a state statute or regulation, an assurance, in a state plan or application, an NTP, or elsewhere may include, as appropriate:
1) Temporarily withhold cash payments pending correction of the deficiency by the Subrecipient.
2) Disallow all or part of the cost of the action not in compliance. 3) Wholly or partly suspend or terminate the Subrecipient’s allocation of Grant Funds.
4) Withhold further and/or future awards for CDBG-DR funds and/or any other funds administered by the Department.
5) Request that the federal awarding agency initiate suspension or debarment proceedings.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
606
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
6) Take other remedies that may be legally available, such as:
a) In the case of costs incurred without meeting a national objective, require repayment of all funds reimbursed and/or paid to the Subrecipient, including Activity Delivery Funds, as appropriate. b) In the case of Duplication of Benefits, require repayment of all CDBG-DR funds reimbursed and/or paid to the Subrecipient where other financial assistance was received for the same purpose or in excess of the need.

In taking an action to remedy noncompliance, the Department will provide the Subrecipient an opportunity for such hearing, appeal, or other administrative proceeding to which the Subrecipient is entitled under any statute or regulation applicable to the action involved as per 2 CFR 200.341. Such appeal shall be governed by, and conducted in accordance with, the appeal processes and procedures set forth in section 4 of this Exhibit.
7) Effects of Suspension and Termination. Subrecipient costs resulting from obligations incurred by the Subrecipient or any of the Subrecipient’s Contractors during a suspension or after termination of an Agreement are not allowable unless otherwise authorized by the Department in written notice or as allowable in 2 CFR 200.342. The enforcement remedies identified in this Section do not preclude a Subrecipient or any of the Subrecipient’s Contractors from being subject to 2 CFR Part 2424. CDBGDR funds may not be provided to excluded or disqualified persons pursuant to 24 CFR 570.489(l) and 2 CFR 200.338-200.339. 8) The remedies available to the Department under this Agreement are cumulative and not exclusive.

B. Termination for Noncompliance: Grant Funds provided by this Agreement may be terminated in whole or in part as per federal regulation at 2 CFR 200.339 by HUD or by the Department if Subrecipient fails to comply with the terms and conditions of both this Agreement and of the federal award. 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. 1) Termination Without Cause: This Agreement may be terminated by the Department in whole or in part at any time without cause only with the consent of the Subrecipient. In the case of a termination of the whole agreement, the parties shall agree upon termination conditions, including

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
607
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
the effective date. In the case of a partial termination, the parties shall agree upon termination conditions, including the portion to be terminated and the effective date.
2) Termination with Cause: This Agreement may be terminated by the Department in whole or in part at any time for cause by giving at least 14 days’ prior written notice to the Subrecipient. Termination with cause includes termination prior to the end of the period of performance for failure to comply with the terms and conditions of this Agreement, and pursuant to 2 CFR 200.339(b), such termination shall be reported to the appropriate federal program integrity and performance system accessible through the System for Award Management. Termination with cause also includes, without limitation, a failure by Subrecipient to comply with the Approved Project Schedule, Approved Project Performance Milestones, Reporting Requirements, and/or Special Conditions of any Notice to Proceed issued for an Approved Project to use CDBG-DR funds.

C.

Appeals Process for Finding of Noncompliance: In taking an action to address noncompliance, the Department will provide the Subrecipient an opportunity for a such hearing, appeal, or other administrative proceeding to which the Subrecipient is entitled under any statute or regulation applicable to the action involved as per 2 CFR 200.341 and/or the Department’s monitoring plan and associated exhibit/exhibits. Contact the monitoring representative for an updated appeal exhibit version. https://www.hcd.ca.gov/community-development/disasterrecovery-programs/cdbg-dr/cdbg-dr2017/docs/DR_MAC_Monitoring_Plan_Final.pdf

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 Subrecipient 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

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
608
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
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 Subrecipient 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.

All waivers by the Department must be in writing in order to be valid.

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

A. Single Audit Compliance: Funds will not be disbursed to any Subrecipient 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 Sub-Part F. No funds may be disbursed until compliance with the Uniform Guidance is demonstrated to the satisfaction of the Department.

B. Accounting Standards: The Subrecipient agrees to comply with, and administer the activity in conformance with, 2 CFR Part 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.

C. Suspension and Debarment: By executing this Agreement, Subrecipient 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. Subrecipient further agrees to verify that its Contractors have not been suspended or debarred from participating or receiving federal government contracts, subcontracts, loans, grants, or other assistance programs.

8. Compliance with State and Federal Laws and Regulations A. The Subrecipient, its agencies or instrumentalities, and Contractors shall comply with all local, state, and federal laws, statutes, and regulations, as well as policies and procedures established by the Department for the administration of the DRInfrastructure programs, as the same may be amended from time to time.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
609
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
B. The Subrecipient shall comply with the requirements of 24 CFR 570, the HUD regulations concerning Community Development Block Grants, 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Final Guidance, adopted by HUD at 2 CFR 2400, and any and all federal regulations, guidelines, rules, and policies issued pursuant to the foregoing. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available.

C. The Subrecipient must maintain compliance with the Housing Element requirements detailed in Health and Safety Code (HSC) sections 50829 and 50830 for the duration of this Agreement, if applicable.

9. Authority to Impose Additional Special Conditions
In accordance with 2 CFR 200.207, Department reserves the right and authority to impose additional specific conditions within any NTP issued under this Agreement under any of the following circumstances:

A. When, in the Department’s sole discretion, the Department finds that Subrecipient has a history of failure to comply with the general or specific terms and conditions applicable to the CDBG-DR funds allocated under this Agreement or to other awards of federally-funded grant or loan assistance passed through the Department.

B. When Subrecipient fails to meet expected performance goals under this Agreement.

C. When Subrecipient poses an increased risk for noncompliance based on factors including, but not limited to, financial stability, quality of management systems, history of performance under federal awards, history of timeliness under federal awards, history of conformance with terms and conditions of previous federal awards, and reports and findings from audits.

D. When, in the Department’s sole discretion, such conditions are necessary to ensure timely and compliant performance under the Department’s Federal award from HUD.

Such specific conditions, or special conditions, may include but are not limited to, withholding of authority to proceed to the next phase of an otherwise eligible Project, requiring additional detailed financial reports, requiring additional project monitoring, requiring the Subrecipient to obtain technical or management assistance, establishing additional prior approvals, or any other condition the Department deems reasonable and

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
610
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
necessary to safeguard federal funds or the Department’s interests.

If approved, such additional specific award conditions, or special conditions, shall be included in the NTP for Approved Projects and shall include the nature of the additional requirements, the reason why the additional requirements are being imposed, the nature of the action needed to remove the additional requirement (if applicable), the time allowed for completion of the actions (if applicable), and the method for requesting reconsideration of the additional requirements imposed.

10. Equal Opportunity Requirements and Responsibilities The obligations undertaken by Subrecipient include, but are not limited to, the obligation to comply with all federal laws and regulations described in Subpart K of 24 CFR Part 570 and specifically with each of the following, among other things, as the same may be amended from time to time:

A. Title VI of the Civil Rights Act of 1964: This act provides that no person shall be excluded from participation, denied program benefits, or subject to discrimination based on race, color, and/or national origin under any program or activity receiving federal financial assistance.

B. Title VII of the Civil Rights Act of 1968 (The Fair Housing Act): This act prohibits discrimination in housing on the basis of race, color, religion, sex and/or national origin. This law also requires actions which affirmatively promote fair housing.

C. Restoration Act of 1987: This act restores the broad scope of coverage and clarifies the application of the Civil Rights Act of 1964. It also specifies that an institution which receives federal financial assistance is prohibited from discriminating on the basis of race, color, national origin, religion, sex, disability or age in a program or activity which does not directly benefit from such assistance.

D. Section 109 of Title 1 of the Housing and Community Development Act of 1974 [42 U.S.C. 5309]: This section of Title 1 provides that no person shall be excluded from participation (including employment), denied program benefits, or subject to discrimination on the basis of race, color, national origin, or sex under any program or activity funded in whole or in part under Title 1 of the Act.

E. The Fair Housing Amendment Act of 1988: This act amended the original Fair Housing Act to provide for the protection of families with children and people

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
611
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
with disabilities, strengthen punishment for acts of housing discrimination, expand the Justice Department jurisdiction to bring suit on behalf of victims in federal district courts, and create an exemption to the provisions barring discrimination on the basis of familial status for those housing developments that qualify as housing for persons age 55 or older.

F. The Age Discrimination Act of 1975: This act provides that no person shall be excluded from participation, denied program benefits, or subject to discrimination on the basis of age under any program or activity receiving federal funding assistance. Effective January 1987, the age cap of 70 was deleted from the laws. Federal law preempts any State law currently in effect on the same topic.

G. Section 504 of the Rehabilitation Act of 1973: It is unlawful to discriminate based on disability in federally assisted programs. This Section provides that no otherwise qualified individual shall, solely by reason of his or her disability, be excluded from participation (including employment), denied program benefits, or subjected to discrimination under any program or activity receiving federal funding assistance. Section 504 also contains design and construction accessibility provisions for multi-family dwellings developed or substantially rehabilitated for first occupancy on or after March 13, 1991.

H. The Americans with Disabilities Act of 1990 (ADA): This act modifies and expands the Rehabilitation Act of 1973 to prohibit discrimination against "a qualified individual with a disability" in employment and public accommodations.

The ADA requires that an individual with a physical or mental impairment who is otherwise qualified to perform the essential functions of a job, with or without reasonable accommodation, be afforded equal employment opportunity in all phases of employment.

I. Executive Order 11063: This executive order provides that no person shall be discriminated against on the basis of race, color, religion, sex, or national origin in housing and related facilities provided with federal assistance and lending practices with respect to residential property when such practices are connected with loans insured or guaranteed by the federal government.

J. Executive Order 12259: This executive order provides that the administration of all federal programs and activities relating to housing and urban development be carried out in a manner to further housing opportunities throughout the United States.

K. The Equal Employment Opportunity Act: This act empowers the Equal

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
612
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
Employment Opportunity Commission (EEOC) to bring civil action in federal court against private sector employers after the EEOC has investigated the charge, found "probable cause" of discrimination, and failed to obtain a conciliation agreement acceptable to the EEOC. It also brings federal, state, and local governments under the Civil Rights Act of 1964.

L. The Uniform Guidelines on Employee Selection Procedures adopted by the Equal Employment Opportunity Commission in 1978: This manual applies to employee selection procedures in the areas of hiring, retention, promotion, transfer, demotion, dismissal and referral. It is designed to assist employers, labor organizations, employment agencies, licensing and certification boards in complying with the requirements of federal laws prohibiting discriminatory employment.

M. The Vietnam Era Veterans' Readjustment Act of 1974 (revised Jobs for Veterans Act of 2002): This act was passed to ensure equal employment opportunity for qualified disabled veterans and veterans of the Vietnam War.

Affirmative action is required in the hiring and promotion of veterans.

N. Executive Order 11246: This executive order applies to all federally assisted construction contracts and subcontracts. It provides that no person shall be discriminated against on the basis of race.

11. Relocation, Displacement, and Acquisition
The Subrecipient shall comply with the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and regulations adopted to implement the Act in 24 CFR Part 42, 49 CFR Part 24, and Section 104(d) of the Housing and Community Development Act of 1974 as they apply to the performance of this Agreement.

12. The Training, Employment, and Contracting Opportunities for Business and Lower Income Persons Assurance of Compliance (Section 3):

The Subrecipient and the Subrecipient’s Contractors 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, Part 75. The responsibilities outlined in 24 CFR Part 75.19 include:

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

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
613
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
opportunities generated by Section 3 covered assistance.

B. Notifying potential Contractors for Section 3 covered projects of the requirements of Part 75, Subpart C and incorporating the Section 3 clause set forth below in all solicitations and contracts in excess of $100,000 as required at 24 CFR 75.27.

Section 3 Clause
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 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.

The parties to this contract agree to comply with HUD's regulations 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.

The contractor agrees to send to each labor organization 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.

The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR Part 75 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

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
614
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 75.

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.

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.

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.

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.

Contractor agrees to facilitate 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 Section 75.25(b), as appropriate, to reach the goals set forth in Section 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 Section 3 project are Targeted Section 3 workers.

Contractor agrees to document actions taken to comply with the foregoing

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
615
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
requirements, the results of those actions taken and impediments, if any.

13. Environmental Compliance
A. The Subrecipient shall comply with the California Environmental Quality Act (CEQA) requirements as applicable to all Projects.

B. The Subrecipient shall comply with the 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.

C. The Subrecipient shall comply with the requirements of the Clean Air Act, 42 U.S.C. 1857, et seq., as amended.

D. The Subrecipient shall comply with Environmental Protection Agency (EPA) regulation pursuant to 40 CFR Part 50, as amended.

E. The Subrecipient shall comply with HUD regulation pursuant to 24 CFR Part 58.

F. The Subrecipient shall comply with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001). The Subrecipient 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).

G. If applicable, the Subrecipient 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. The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 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 leadTOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
616
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
based paint is found on the property, abatement measures may be required.

H. The Subrecipient shall comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470), the Archaeological and Historical Preservation Act of 1974 (Public Law 93- 291), and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this agreement. The Subrecipient shall also comply with 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 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.

I. 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 Subrecipient of an approval of the request for release of funds and certification from the Department under 24 CFR Part 50, 24 CFR Part 58, and 40 CFR 1500 - 1508. The provision of any funds to the project is conditioned on the Subrecipient’s determination to proceed with, modify or cancel the project based on the results of the environmental review. The Subrecipient will not receive an NTP until they have successfully documented compliance with the applicable NEPA requirements, including public noticing and publishing.

14. Procurement
The Subrecipient shall comply with the procurement provisions in 2 CFR Part 200.318 – 200.326, Procurement Standards as well as all other Administrative Requirements for Subrecipient and Cooperative Agreements to State, local and federally recognized Indian tribal governments as set forth in 2 CFR 200, et seq., as applicable. All procurements must be conducted in a fair, open, and competitive manner in compliance with both the spirit and the letter of applicable federal and state procurement laws and the DR-Infrastructure and Mitigation Policies and Procedures.

15. Procurement of Recovered Materials
In accordance with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, the Contractor shall procure items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition. The Contractor shall procure items

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
617
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
designated in the EPA guidelines that contain the highest percentage of recovered materials practicable unless the Contractor 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.

Pursuant to 30 CFR 247.2, this clause shall apply to items purchased under this Agreement where: (1) the Contractor purchases in excess of $10,000 of the item under this contract; or (2) during the preceding Federal fiscal year, the Contractor: (i) 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 (ii) purchased a total of in excess of $10,000 of the item both under and outside that contract.

16. Construction Standards
The Subrecipient shall ensure that all Approved Projects comply with the following requirements:

The Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157) The Architectural Barriers Act (ABA) stands as the first measure by Congress to ensure access to the built environment for people with disabilities. The law requires that buildings or facilities that were designed, built, or altered with federal dollars or leased by federal agencies after August 12, 1968, be accessible.

California Green Buildings Standards Code (CALGreen) (Title 24, Part 11 of the California Code of Regulations)
All new construction of residential buildings or reconstruction of substantially damaged buildings must incorporate California Green Buildings Standards Code (CALGreen).

Sustainability Requirements
All rehabilitation, reconstruction, and new construction must be designed to incorporate principles of sustainability, including water and energy efficiency, resilience, and mitigating the impact of future disasters. Wherever feasible, the Subrecipient, Subrecipient’s and Contractors must follow best practices, such as those provided by the U.S. Department of Energy.

National Floodplain Elevation Standards

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
618
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
Subrecipients and Contractors must comply with the national floodplain elevation standards for new construction, repair of substantially damaged structures, or substantial improvements to public facilities in flood hazard areas. All structures designed for public facilities use within a special flood hazard area (SFHA), or one percent annual chance, floodplain will be elevated with the lowest floor at least two feet above the base flood elevation level and comply with the requirements of 83 FR 5850 and 83 FR 5861.

Wildland-Urban Interface Building Codes (WUI Codes)
All Approved Projects under this program that are located in a CAL FIRE high fire zone must comply with applicable WUI codes, found in Title 24, Chapter 7a of the California Building Code, which offer specific material, design and construction standards to maximize ignition resistance.

17. Federal Labor Standards Provisions
The Subrecipient and the Developer shall at all times comply, and cause all Project contractors to comply, with applicable federal labor standards, including without limitation, the following:

A. Davis-Bacon Act (40 U.S.C. §§ 31413148), which requires that workers receive no less than the prevailing wages being paid for similar work in their locality.

Prevailing wages are computed by the Federal Department of Labor and are issued in the form of federal wage decisions for each classification of work. The law applies to most construction, alteration, or repair contracts over $2,000.

B. "Anti-Kickback Act of 1986" (41 U.S.C. §§ 51-58), which prohibits attempted as well as completed "kickbacks," which include any money, fees, commission, credit, gift, gratuity, thing of value, or compensation of any kind. The act also provides that the inclusion of kickback amounts in contract prices is prohibited conduct in itself. This act requires that the purpose of the kickback was for improperly obtaining or rewarding favorable treatment. It is intended to embrace the full range of government contracting.

C. Contract Work Hours and Safety Standards Act - CWHSSA (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. Title 29, Code of Federal Regulations CFR, Subtitle A, Parts 1, 3 and 5, which

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
619
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
are the regulations and procedures issued by the Secretary of Labor for the administration and enforcement of the Davis-Bacon Act, as amended.

The Subrecipient 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. Subrecipient shall be responsible for monitoring all Contractors, and subcontractors, as applicable, for compliance with these provisions.

18. State Prevailing Wages
A. The Subrecipient shall ensure that the requirements of California Labor Code (LC), Chapter 1, commencing with Section 1720, Part 7 [LC Section 1720-1743] pertaining to the payment of prevailing wages and administered by the California Department of Industrial Relations are met.

B. 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 Subrecipient and a licensed building contractor, the Subrecipient shall serve as the "awarding body" as that term is defined in the LC. Where the Subrecipient will provide funds to a third party that will enter into the Construction Contract with a licensed building contractor, the third party 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.

C. The applicable wage rate determination on construction work will be the more restrictive of the rate prescribed in LC Section 1770-1784 or the Davis-Bacon Wage Determination.

19. Agreements with Contractors
A. The Subrecipient shall not enter into any agreement, written or oral, with any Contractor or other party without the prior determination that the Contractor or other party is eligible to receive federal funds and is not listed on the Federal Consolidated List of Debarred, Suspended, and Ineligible Contractors or similar Federal or state listing of debarred or ineligible parties.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
620
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
The terms “other party” is defined as public or private nonprofit agencies or organizations and certain (limited) private for-profit entities who receive Grant Funds from a Subrecipient to undertake Approved Projects.

B. An agreement between the Subrecipient and any Contractor or other party shall require:
1) Compliance with all State and federal requirements described in this Agreement including without limitation those that pertain to labor standards, nondiscrimination, Americans with Disabilities Act, Equal Employment Opportunity and Drug Free Workplace, and prevailing wages.

In addition to these requirements, all contractors and subcontractors shall comply with the applicable provisions of the California Labor Code. 2) Maintenance of at least the minimum State required Workers' Compensation Insurance for those employees who will perform the Approved Project activities.
3) Maintenance, as required by law, of unemployment insurance, disability insurance and liability insurance, which is reasonable to compensate any person, firm, or corporation, who may be injured or damaged by the contractor, or any subcontractor in performing the Approved Project activities.
4) Compliance with the applicable Equal Opportunity Requirements described in Exhibit D, Section 10 of this Agreement.

C. Contractors shall:
1) Perform the Approved Project activities in accordance with federal, state, and local regulations, as are applicable.
2) Provide security to assure completion of the Approved Project(s) by furnishing the borrower and construction lenders with proof of sufficient insurance and performance and payment bonds, or other security approved in advance in writing by the Department, as determined by the particulars of each individual Project will be required.

D. Contractors and Subcontractors: Drug-Free Workplace Act of 1988 1) Publish and give a policy statement to all covered employees informing them that the unlawful manufacture, distribution, dispensation, possession

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
621
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
or use of a controlled substance is prohibited in the covered workplace and specifying the actions that will be taken against employees who violate the policy.
2) Establish a drug-free awareness program to make employees aware of a) the dangers of drug abuse in the workplace; b) the policy of maintaining a drug-free workplace; c) any available drug counseling, rehabilitation, and employee assistance programs; and d) the penalties that may be imposed upon employees for drug abuse violations.
3) Notify employees that as a condition of employment on a federal contract or grant, the employee must a) abide by the terms of the policy statement; and b) notify the employer, within 5 calendar days, if he or she is convicted of a criminal drug violation in the workplace.
4) Notify the contracting or granting agency within 10 days after receiving notice that a covered employee has been convicted of a criminal drug violation in the workplace.
5) Impose a penalty on or require satisfactory participation in a drug abuse assistance or rehabilitation program by any employee who is convicted of a reportable workplace drug conviction.
6) Make an ongoing, good faith effort to maintain a drug-free workplace by meeting the requirements of the act.

20. Rights to Inventions Made Under a Contract or Agreement 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 Part 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.

21. Special Conditions Pertaining to Hazards, Safety Standards and Accident Prevention
A. Use of Explosives: When the use of explosives is necessary for the prosecution of the work, the Contractor shall observe all local, state and federal laws in purchasing and handling explosives and comply with all insurance requirements

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
622
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
set forth in section 29.B.4 below. The Contractor shall take all necessary precaution to protect completed work, neighboring property, water lines, or other underground structures. Where there is danger to structures or property from blasting, the charges shall be reduced, and the material shall be covered with suitable timber, steel or rope mats.

The Contractor shall notify all owners of public utility property of intention to use explosives at least 8 hours before blasting is done close to such property. Any supervision or direction of use of explosives by the engineer does not in any way reduce the responsibility of the Contractor or his Surety for damages that may be caused by such use.

B. Danger Signals and Safety Devices: The Contractor shall make all necessary precautions to guard against damages to property and injury to persons. The Contractor shall put up and maintain in good condition, sufficient red or warning lights at night, suitable barricades and other devices necessary to protect the public.

C. Protection of Lives and Health: The Contractor shall exercise proper precaution at all times for the protection of persons and property and shall be responsible for all damages to persons or property, either on or off the worksite, which occur as a result of prosecution of the work. The safety provisions of applicable laws and building and construction codes, in addition to specific safety and health regulations described by Chapter XIII, Bureau of Labor Standards, Department of Labor, Part 1518, Safety and Health Regulations for Construction, as outlined in the Federal Register, Volume 36, No. 75, Saturday, April 17, 1971, Title 29 - LABOR, shall be observed and the Contractor shall take or cause to be taken, such additional safety and health measures as reasonably necessary.

22. 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, B. 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 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.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
623
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022

23. Reporting Requirements
A. Subrecipient must timely submit the reports prescribed below. The Department reserves the right to request additional detail and support for any report made.

Reports must be made according to the dates identified, in the formats provided by the Department, and via the Department’s Grants Network unless otherwise specified at the discretion of the Department. The Subrecipient’s performance under this Agreement will be assessed based in part on whether it has submitted the reports on a timely basis.
1) Monthly Activity Report: Subrecipient must submit a Monthly Activity Report that addresses the following, at a minimum: (1) a description of the current status of the Subrecipient Work and Project Work, (2) a description of activities to be undertaken in the next reporting period; (3) a description of problems or delays encountered in Subrecipient Work and Project Work and course of action taken to address them; (4) a description of actions taken to achieve Subrecipient Work and Project Work expenditure deadlines; (5) a summary of Subrecipient Work and Project Work fiscal status, including award amount, funds drawn, and remaining balance; and (6) data on activity accomplishments and beneficiaries served, as requested by the Department. Unless otherwise waived in writing by the Department, Monthly Activity Reports must begin on the 10th calendar day of the second month following execution of this Agreement and must continue through the receipt and approval by the Department of the Project Completion Report, detailed below.
2) Monthly Program Income Report: Program Income, if identified as a funding source for any Approved Project, must be included in the Project budget and must be expended prior to drawing Grant Funds. During the term of this Agreement, if Program Income is generated, the Subrecipient must submit a Monthly Program Income Report certifying the amount of Program Income generated, retained and expended. Program Income remaining at the end of each quarter and at the expiration of this Agreement must be remitted to the Department.
3) Semi-Annual Labor Standards Report and Section 3 Requirements:

During the term of construction for each Approved Project, each April 1st and October 1st, and at the completion of the Project, the Subrecipient must submit the Labor Standards Cover Memo, the HUD Form 4710 and the Davis Bacon Labor Standards Report 5.7 (if applicable). These forms are located on the Department’s website and are also available upon

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
624
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
request. Additionally, the Department may request additional documentation to meet Section 3 requirements.
4) Project Completion Report: Per Exhibit B, Section 6 Project Closeout Procedures, after the completion of construction and once an Approved Project is placed in service, the Subrecipient must submit a Project Completion Report that includes that the project is completed and performing as designed. The report must also include documentation of compliance with Section 3 requirements.

24. Fiscal Controls
The Subrecipient shall be responsible for the internal control and monitoring of fiscal and programmatic/operational goals and procedures. The Subrecipient 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 disbursement of, and accounting for, funds paid to the Subrecipient under this Agreement.

A. Deposit of Funds: Subrecipient shall maintain separate accounts within established bookkeeping systems for the deposit of CDBG-DR funds and Program Income. Deposits in minority banks are encouraged.

B. Fiscal Liability: Subrecipients shall be liable for all amounts which are determined to be due by the Department, including but not limited to, disallowed or ineligible costs which are the result of Subrecipient’s or its Contractor’s conduct under this Agreement. Subrecipients shall also be liable for the repayment of any and all amounts it has received under this Agreement and which HUD is seeking reimbursement for from the Department. Subrecipient’s obligation to repay the foregoing amounts to the Department shall survive indefinitely the expiration or earlier termination of this Agreement. Subrecipient 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.

C. 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 Exhibit D, Section 27 of this Agreement.

D. Program Income: Any and all Program Income received during the administration of this Agreement must be receipted and maintained in a separate Program Income account. Program Income funds may not be comingled with CDBG-DR grant funds in a single account.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
625
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022

25. Monitoring Requirements
The Department monitors its Subrecipients based upon an assessment of risk posed by the Subrecipient and according to specific monitoring criteria per 2 CFR 200.331.

During the term of this Agreement, the Department shall perform program and/or fiscal monitoring of the Subrecipient and Approved Projects to ensure compliance with federal and state requirements and timely project completion. The Subrecipient shall be required to resolve any monitoring findings to the Department's satisfaction by the deadlines set by the Department. In the event Subrecipient disagrees with a finding and/or any accompanying corrective actions or sanction(s) that are associated with such finding, Subrecipient shall follow an appeals process provided by the Department and consistent with Section 4 of Exhibit D of this Agreement.

Subrecipient shall ensure their Contractors and Approved Projects are in compliance with CDBG-DR requirements, the 2018 DR-Infrastructure Policies and Procedures, and the terms and conditions of this Agreement, and in connection therewith, shall perform regular, ongoing monitoring of the Contractors and Approved Project(s) for the term of this Agreement. Subrecipient shall ensure their Contractors resolve any monitoring findings to the Subrecipient's satisfaction by the deadlines set by the Subrecipient.

Subrecipient shall report any monitoring findings to the Department, as well as the status of those findings until they are resolved by the Contractors.

26. Inspections of Project Activities
The Department reserves the right to inspect any Approved Project activities performed hereunder to verify that the Approved Project activities are being and/or have been performed in accordance with the applicable federal, state and/or local requirements and this Agreement.

A. The Subrecipient shall inspect any Approved Project activity performed by contractors and subcontractors hereunder to ensure that the Approved Project activities are being and have been performed in accordance with the applicable federal, State and/or local requirements and this Agreement.

B. The Subrecipient shall require that all Approved Project activities found by such inspections that do not conform to the applicable requirements be promptly corrected, and shall withhold payment to its Contractor or subcontractor, respectively, until it is so corrected.

C. Access by the Subrecipient, the federal grantor agency, the State, the Comptroller General of the United States, or any of their duly authorized

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
626
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
representatives to any books, documents, papers, and records of the Subrecipient, Contractor, or subcontractor which are directly pertinent to that specific contract for the purpose of monitoring, making audit, examination, excerpts, and transcriptions pursuant to 24 CFR 85.36(i)(10) shall be permitted.

Subrecipient shall include in its agreements with Contractors, as applicable, provisions requiring such parties to provide access to its records for the purposes specified above.

27. Audit/Retention and Inspection of Records
A. The Subrecipient must have intact, auditable fiscal and program records at all times. If the Subrecipient is found to have missing audit reports from the California State Controller's Office (SCO) during the term of this Agreement, the Subrecipient will be required to submit a plan to the State for submitting the audit to the SCO. If the deadlines are not met, the Department may initiate remedies for noncompliance in accordance with Section 4 herein. The Subrecipient's audit completion plan is subject to prior review and approval by the Department.

B. The Subrecipient agrees that the Department or its designee will have the right to review, obtain, and copy all records pertaining to performance of this Agreement.

The Subrecipient agrees to provide the Department or its designee with any relevant information requested and shall permit the Department or its designee access to its premises, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with California Public Contract Code (PCC) Section 10115 et seq., Government Code (GC) Section 8546.7 and 2 CCR 1896.60 et seq., and other requirements of this Agreement. The Subrecipient further agrees to maintain such records for a minimum period of five (5) years after the Department notifies Subrecipient that the HUD/the Department contract has been closed according to the record retention requirements at 2 CFR 200.333. The Subrecipient shall comply with the caveats and be aware of the penalties for violations of fraud and for obstruction of investigation as set forth in Public Contract Code section 10115.10.

C. An expenditure which is not authorized by this Agreement, or which cannot be adequately documented shall be disallowed and must be reimbursed to the Department or its designee by the Subrecipient.

D. Absent fraud or material error on the part of the Department, the determination by the Department of the allowability or validity of any expenditure shall be final and conclusive.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
627
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
E. For the purposes of annual audits, Subrecipient shall comply with 2 CFR Part 200 Subpart F for the State CDBG Program. Pursuant to 2 CFR Part 200 Subpart F, the Subrecipient shall perform an annual audit at the close of each fiscal year in which this Agreement is in effect. The costs of the CDBG-DR related portion of the audit may be charged to the program in accordance with Public Law 98502, 2 CFR Part 200 Subpart F, and Title 25 CCR Section 7122.
1) The audit shall be performed by a qualified State, department, local or independent auditor. The agreement/contract for audit shall include a clause which permits access by the Department to the independent auditor's working papers.
2) If there are audit findings, the Subrecipient must submit a detailed response to the Department for each audit finding. The Department will review the response and, if it agrees with the response, the audit process ends, and the Department will notify the Subrecipient in writing. If the Department is not in agreement, the Subrecipient will be contacted in writing and informed what corrective actions must be taken. This action may include the repayment of disallowed costs or other remediation. 3) The Department shall not approve reimbursement for any expenditures for the audit, prior to receiving an acceptable audit report. 4) If so, directed by the Department upon termination of this Agreement, the Subrecipient shall cause all records, accounts, documentation and all other materials relevant to the grant activity(ies) to be delivered to the Department as depository.

F. Notwithstanding the foregoing, the Department will not reimburse the Subrecipient for any audit cost incurred after the expenditure deadline of this Agreement.

28. Signs
If the Subrecipient places signs stating that the Approved Project 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 Approved Project that the Department is a source of financing through the CDBG-DR Program.

29. Insurance

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
628
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
Subrecipient, its Contractors shall comply with all requirements outlined in the (A) General Provisions section and (B) Project Insurance Requirements outlined in this section. These requirements are in addition to, and not in lieu of, any other insurance coverages required elsewhere in this Agreement. No payments will be made under this Agreement for Subrecipient Work and Project Work until the Subrecipient fully complies with all requirements. No payments will be made under the terms of any Approved Project until the Subrecipient confirms to the Department that all Contractors on the specified Approved Project fully comply with all requirements. The Department reserves the right to waive or adjust required insurance coverages from time to time in its sole discretion.

A. General Provisions Applying to All Policies
1) Coverage Term – Subrecipient’s coverage needs to be in force for the complete term of the Agreement. The Contractor’s coverage needs to be in force for the complete affordability period of each Approved Project. The Contractor’s coverage needs to be in force until a certificate of occupancy is issued for each Approved Project, if applicable. No work may be performed by Subrecipient or a Contractor until and unless all insurances required by this Agreement are in full force and effect. If insurance expires during the term of the Agreement, as applicable, a new certificate must be received by the Department at least 30 days prior to the expiration of said insurance. Any new insurance must comply with the original terms of this Agreement.
2) Policy Cancellation or Termination & Notice of Non-Renewal – Subrecipient is responsible to notify the Department within 15 business days prior to any actual or proposed cancellation, non-renewal or material change that affects required coverage. No policy may be cancelled upon less than 30 days’ prior written notice from the insurer to the insured and the Department. New certificates of insurance are subject to the approval of the Department and the Subrecipient agrees no Subrecipient Work and Project Work or services will be commenced or performed prior to obtaining such approval. In the event Subrecipient and Contractor fails to keep in effect at all times the specified insurance coverage, the Department may, in addition to any other remedies it may have, terminate this Agreement and/or Approved Project upon the occurrence of such event, subject to the provisions of this Agreement.
3) Premiums, Assessments and Deductibles – Subrecipient and Contractors for each Approved Project are responsible for the payment of all

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
629
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
premiums, policy assessments, deductibles or self-insured retentions associated with their respective insurance programs.
4) Primary Clause – Any required insurance contained in this Agreement shall be primary, and not excess or contributory, to any other insurance carried by the Department.
5) Insurance Carrier Required Rating – All insurance companies must carry an AM Best rating of at least “A–” with a financial category rating of no lower than VII. If the Subrecipient and/or Contractor is self-insured for a portion or all of its insurance, review of financial information including a letter of credit may be required. Acceptance of self-insurance is within the sole discretion of the Department, and the Department reserves the right to require insurance from third-party commercial insurers. 6) Endorsements – Any required endorsements requested by the Department must be physically attached to all requested certificates of insurance and not substituted by referring to such coverage on the certificate of insurance.
7) Inadequate Insurance – Inadequate or lack of insurance does not negate the Subrecipient’s or Contractor’s obligations under this Agreement or the terms specific to the relevant Approved Project, nor does the availability or limits of any insurance policies required herein in any way limit the liability of Subrecipient or any Contractor, to the Department hereunder, nor does it in any way limit the liability of such parties to the Department in regards to any indemnification obligations of such parties herein. 8) Available Coverages/Limits – All coverage and limits available to the Subrecipient or Contractor shall also be available and applicable to the Department.
9) Satisfying an SIR - All insurance required by this Agreement and any required by the terms specific to the relevant Approved Project must allow the Department to pay and/or act as the Subrecipient’s or Contractor’s agent in satisfying any self-insured retention (SIR). The choice to pay and/or act as the Subrecipient’s, or Contractor’s agent in satisfying any SIR is at the Department’s discretion.
10) Use of Subcontractors - In the case of Contractor’s utilization of subcontractors to complete the contracted scope of work for the relevant Approved Project, Contractor shall include all subcontractors as insureds

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
630
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
under Contractor’s insurance or supply evidence of subcontractor’s insurance to the Department equal to policies, coverages, and limits required of Contractor.

B. Project Insurance Requirements
Subrecipient and/or Contractor shall display evidence, as applicable for the relevant Approved Project, of the following on a certificate of insurance evidencing the following coverages:
1) Commercial General Liability – Contractor on an Approved Project shall maintain commercial general liability insurance on an occurrence form with limits not less than $1,000,000 per occurrence for bodily injury and property damage liability combined with a $2,000,000 annual policy aggregate or such higher amount as the Department made deem appropriate under the circumstances for each Approved Project. The Department shall identify any higher insurance limits in the NTP for the Approved Project subject to them. The policy shall include coverage for liabilities arising out of premises, operations, independent contractors, products, completed operations, personal & advertising injury, and liability assumed under an insured contract. This insurance shall apply separately to each insured against whom claim is made or suit is brought subject to the Contractor’s limit of liability.

The policy must name The State of California, its officers, agents, and employees as additional insureds.
2) Automobile Liability – Contractor shall maintain, as applicable, business automobile liability insurance for limits not less than $1,000,000 combined single limit. Such insurance shall cover liability arising out of a motor vehicle including owned, hired and non-owned motor vehicles. Should the scope of the relevant Approved Project involve transportation of hazardous materials, evidence of an MCS-90 endorsement is required.

The policy must name The State of California, its officers, agents, and employees as additional insured.

Workers Compensation and Employer’s Liability – Contractor shall maintain statutory worker’s compensation and employer’s liability coverage for all its employees who will be engaged in the performance of this Agreement and the relevant Approved Project. In addition, employer’s liability limits of $1,000,000 are required. By signing this Agreement,

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
631
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
Subrecipient acknowledges compliance with these regulations. A Waiver of Subrogation or Right to Recover endorsement in favor of the State of California must be attached to certificate.
3) Flood Insurance – Subrecipient shall procure and maintain flood insurance if required under Section 13.E. of this Agreement.
4) Additional Coverages – In the event that Subrecipient, Developer, and/or any of its Contractors will be engaging in any Hazardous Activity as part of the Collective Work contemplated by this Agreement, then the party(ies) engaging in any Hazard Activity(ies) 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 the Developer pursuant to the Development Agreement. For purposes of the provision, the term "Hazardous Activity" includes but is not limited to 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 or asbestos, (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."

30. Indemnification
Subrecipient, at its sole cost and expense, shall indemnify, defend, and hold the Department and its employees, representatives, attorneys, agents, and their respective successors, heirs, and assigns harmless from and against any and all claims, demands, actions, costs, losses, damages, and liabilities, whether direct or indirect, and regardless of their nature or source, which in any way relate to or arise from the actions or inactions of Subrecipient and/or its contractors, subcontractors, employees, owners, agents, and representatives in connection with this Agreement and any agreement or instruments executed in connection herewith. The obligations of Subrecipient under this Section 30 shall survive indefinitely the closeout of Approved Projects and the expiration or earlier termination of this Agreement.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
632
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022

31. Anti-Lobbying Certification
The Subrecipient shall require that the language of this certification be included in all contracts or subcontracts entered into in connection with the Approved Project(s) and 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 and no more than $100,000 for such failure.

A. 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 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 Subrecipient, 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-DR 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 United States, may obtain a financial interest or benefit from a CDBG-DR assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to a CDBG-DR assisted activity or its proceeds, either for themselves or those with whom they have business or immediate family ties, during their tenure, or for 1 year thereafter. The Subrecipient 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.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
633
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022

33. Obligations of Subrecipient with Respect to Certain Third-Party Relationships The Subrecipient shall remain fully obligated under the provisions of this Agreement notwithstanding its designation of any third party or parties for the undertaking of all or any part of the Subrecipient Work and/or Project Work with respect to which assistance is being provided under this Agreement to the Subrecipient. The Subrecipient shall comply with all lawful requirements of the Department necessary to ensure that the Subrecipient Work and/or Project Work, with respect to which assistance is being provided under this Agreement to the Subrecipient, 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 State Energy Conservation Plan issued in compliance with the federal Energy Policy and Conservation Act (Pub. L. 94-163, 89 Stat. 871).

35. State Contract Manual Requirements (Section 3.11, Federally Funded Contracts (Rev. 3/03):

A. All contracts, except for State construction projects that are funded in whole or in part by the Federal government, must contain a 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 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

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
634
Town of Paradise
18-DRINFRA-18006

EXHIBIT D
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/18/2022
sufficient funds for the program, this contract shall be amended to reflect any reduction in funds.
4) The Department has the option to invalidate the contract under the 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. Gov. 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.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
635
Town of Paradise
18-DRINFRA-18006

EXHIBIT E
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/17/2022

SPECIAL TERMS AND CONDITIONS

1. Due Diligence Review
Subrecipient has provided the Department with information about the Subrecipient’s experience, processes, policies, and procedures related to the development of DRInfrastructure projects and the management of federal funding in the Subrecipient’s jurisdiction. These submissions, in addition to discussions with the Subrecipient, have been used to inform this Agreement and are being materially relied upon by the Department in agreeing to enter into this Agreement.

Should there be substantive changes to the organization, key personnel, methods, policies, or processes of the Subrecipient that impact the implementation of this Agreement, the Subrecipient shall promptly notify the Department of said changes.

Subrecipient agrees to provide documents and information to facilitate the Department’s Subrecipient due diligence as required in Federal Register Notice 85 FR 4681. Subrecipient further agrees to comply with the requirements, requests, and results of the Department’s due diligence and maintain the capacity to carry out disaster recovery activities in a timely manner at all times during the term hereof.

2. Risk Assessment
During the term of this Agreement, Subrecipient agrees to provide documents and information to facilitate the Department’s Subrecipient monitoring risk assessment process. Subrecipient further agrees to comply with the requirements, requests, and results of the Department’s risk assessment, including participation in Subrecipient monitoring events.

3. Special Conditions
Pursuant to the Due Diligence and Risk Assessment, Subrecipient agrees to adhere to the following special conditions:

A. The Department's issuance of one or more project-specific Notice to Proceed is expressly conditioned on the Department’s determination that Subrecipient has satisfied all special conditions, contained herein and relevant to Subrecipient's project(s), individually and collectively, as well as all other terms and conditions of this Agreement.

B. Any and all conditions set forth in a Notice to Proceed issued by the Department with respect to Approved Projects.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
636
Town of Paradise
18-DRINFRA-18006

EXHIBIT E
18-DRINFRA-18006
NOI Date: 02/01/2022
Approved Date: 10/04/2022
Prep Date: 10/17/2022
C. Subrecipient will develop and implement procurement policies and procedures that demonstrate conformity with 2 CFR part 200.318-327 and applicable Federal Register Notices. Technical assistance by the department will be provided upon the subrecipient’s request. The Subrecipient will submit the procurement policies and procedures to the Department in advance of the Department’s release of a Notice to Proceed.

D. Subrecipient will develop and implement labor compliance and monitoring policies and procedures. The Subrecipient must show how they will comply with federal labor standards and overall construction monitoring, including but not limited to the Davis-Bacon and Related Acts and HUD’s Section 3 provision of the Housing and Urban Development Act of 1968 as outlined in the MSA Per Exhibit D, Section 12 The Training, Employment, and Contracting Opportunities for Business and Lower Income Persons Assurance of Compliance (Section 3) and Section 17 Federal Labor Standards Provisions. The Subrecipient will submit the labor compliance and monitoring policies and procedures in advance of the Department’s release of a Notice to Proceed.

E. Subrecipient will develop and implement policies and procedure for timekeeping and financial management which must include how the jurisdiction submits, reviews, and tracks staff time consistent with Subrecipient requirements outlined in the MSA Per Exhibit D, Section 7 Uniform Administrative Requirements and Section 24 Fiscal Controls between the Subrecipient and the Department. The Subrecipient will submit the timekeeping and financial management policies and procedures to the Department in advance of the Department’s release of a Notice to Proceed.

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT A
637
EXHIBIT “B” Resolution Approved by Council
638

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT B
639

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT B
640

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT B
641
EXHIBIT “C” 18DR INF POLICIES AND PROCEDURES V3.0
642
State of California
Department of Housing and Community Development
2018 Community Development Block Grant - Disaster Recovery Infrastructure Program
Policies and Procedures Manual
Version 3.0
July 2023

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EXHIBIT C
643
2018 CDBG-DR Infrastructure Program Policies and Procedures ii
Version Policy
Version history is tracked in the table below with notes regarding version changes. The dates of each publication are also tracked in the table.

Substantive changes within this document that reflect a policy change results in the issuance of a new version. For example, the change to a rolling application process is a substantial change to the procedures provided in Version 1.0. Future policy changes will result in additional revisions and the issuance of a new primary number version.

Non-substantial changes, such as minor wording and editing or clarification of existing policy that do not affect the interpretation or applicability of the policy, are included in minor version updates denoted by a sequential number increase behind the primary version number. Such changes would result in a version number such as 2.1, 2.2, etc.

Version History
Version
Number
Date
Revised Description of Revisions
v1.0 June 2021 Initial Draft: Policies and Procedures are subject to change at the sole discretion of the DR-Infrastructure Program v2.0 December
2021
Section 2.2.1 Tie-Back to the Disaster: Addition of
requirements for use of population shift as a result of the disaster as an indirect disaster tie-back.

2.2.3 Eligible Applicants: Update of requirements for
Eligible Applicants working on behalf of another jurisdiction or special district.

2.2.4 Disaster Recovery Infrastructure and Disaster
Recovery Multifamily Housing Program Coordination:

Clarify coordination of DR-Infrastructure and DR-Multifamily Housing Program for infrastructure projects and establish how project responsibility determines potential program eligibility.

2.3.10 Section 3 of the HUD Act of 1968: Update regarding the Section 3 Final Rule.

2.6.1 Eligible Uses of Funds: Clarification of the nonfederal share of U.S. Army Corps of Engineers projects maximum limit.

3.1.1 NOI Process: Clarification of NOI Rounds and timing.

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644
2018 CDBG-DR Infrastructure Program Policies and Procedures iii

3.1.5 Allocations from NOI: Update Allocation methodology for Priority Level percentages.

3.1.6 Application Process: Update of the Application
Process including timing, Due Diligence, and Authorizing Resolution requirements.

3.1.7: Application Requirements: Updates on
requirements for the Application including the Due Diligence and Authorizing Resolution.

3.1.8 Application Review: Update of approval entity for potential projects submitted under the Application.

3.1.9 Application Award Methodology: Update of Award
Methodology to clarify Application to Agreement timing.

3.1.11 Notice to Proceed: Clarification of Notice to Proceed procedure with update of Application to Agreement timing.

Appendix 1: Addition of the 2018 Mitigation Resilient
Infrastructure Program (MIT-RIP) Policies and Procedures.

Unless otherwise noted in the MIT-RIP Addendum MIT-RIP
follows the 2018 DR-Infrastructure Policies and Procedures. v3.0 January
2023
Full Document: General updates related to grammar,
capitalization, punctuation, and overall formatting.

Full Document: General updates related to grammar,
capitalization, punctuation, and overall formatting.

Clarification of uses of Standard Agreements (SAs) and
Master Standard Agreements (MSAs) throughout grant life cycle.

1.2 Terms and Definitions: Clarification of definition and allowable uses for Activity Delivery Costs.

1.2 Terms and Definitions: Additional clarification of process triggered by issuance of a Notice to Proceed.

2.2.1 Tie-back to Disasters: Additional clarification regarding documentation required for FEMA PA Match projects.

2.2.1 Tie-back to Disasters: Clarification of tie-back
documentation requirements for road repair projects.

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645
2018 CDBG-DR Infrastructure Program Policies and Procedures iv

2.2.1 Tie-back to Disasters: Clarification of location
documentation requirements for tie-back documents and
images.

2.2.3. Meeting a National Objective: Clarification of Urgent Need national objective.

2.2.4 Eligible Applicants: Update of requirements for
Eligible Applicants and secondary subrecipients.

2.2.5 Infrastructure and Multifamily Housing Program
Coordination: Clarification of allowable use of DR-MHP
and DR-Infrastructure funds for infrastructure activities on approved DR-MHP projects by qualified developers /
contractors. DR-MHP funds can be used but DRInfrastructure may not be used for activities that are the responsibility of the developer/contractor.

2.3.17 Procurement Policy: Clarification regarding HCD
review of subrecipient’s procured contracts. HCD will not review each contract but will confirm compliance through monitoring.

2.3.20 Environmental Review Procedures: Clarification of requirements for subrecipients to use activity delivery funds for the environmental review process.

2.7 Determining the Non-Federal Share Amount: Section
was moved from original location in 2.3 CDBG-DR and
Cross-Cutting Federal Requirements to Section 2.7.

2.8.2 Ineligible Uses of Funds: Added private
infrastructure as an ineligible use of program funds.

3.1.1 NOI Process: Clarification of purpose of NOI and NOI Review.

3.1.1 NOI Process: Update to NOI process and policy
regarding consideration of eligible projects. Only eligible Projects submitted during the NOI process will be
considered for an award during the application phase.

Projects not submitted as part of the NOI/unmet need
assessment and determined to be eligible by HCD during
the application phase will not be considered for an award.

3.1.2 NOI Requirements: Clarification of tieback
documentation required for NOI applications.

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646
2018 CDBG-DR Infrastructure Program Policies and Procedures v

3.1.3 NOI Review: Clarification of NOI review criteria.

Priority Level 1 is LMI; Priority Level 2 is Urgent Need.

3.1.4 NOI Approval: Clarification of HCD staff roles and order of review for NOI approval.

3.1.7 Project Application Process: Clarification of the timing of the Application deadline based on the execution of an MSA. The application due date for Subrecipients is now 90 days from execution from the MSA.

3.1.7 Project Application Process: Clarification of
authorizing resolution, MSA, and application processes and requirements. An MSA must be executed by a Subrecipient prior to submitting an application to HCD.

3.1.9 Application Review: Clarification on criteria and process for application denial, and clarification of HCD’s application review and NTP issuance process.

3.1.11 Notice to Proceed: Clarification of steps,
submissions, and approvals required before HCD may issue an NTP. Clarification that NTP enables subrecipient to
formally proceed with projects and expect to be reimbursed for eligible activity costs incurred after NTP execution date.

Clarification that FEMA match projects that commenced
construction prior to the NOI are excluded from restrictions on incurring pre-NTP activity costs.

3.4 Activity Delivery Costs: Clarification of when ADCs can be incurred by a Subrecipient prior to an MSA.

4. Program Operations: Changed section title from
Program Operations and Implementation.

Appendix 1: Removed the 2018 Mitigation Resilient
Infrastructure Program (MIT-RIP) Policies and Procedures section. The 2018 MIT-RIP Policies and Procedures will be produced as its own stand-alone document.

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647
2018 CDBG-DR Infrastructure Program Policies and Procedures vi
Table of Contents
Table of Contents .........................................................................................................................................vi General ......................................................................................................................................................... 1

1.1. Purpose and Scope .......................................................................................................................... 1

1.2. Terms and Definitions....................................................................................................................... 2 Program Requirements................................................................................................................................. 7

1.3. Infrastructure Program Activities....................................................................................................... 7

2.1.1 FEMA PA Match ....................................................................................................................... 7

2.1.2 FEMA HMGP Match ................................................................................................................. 8

2.1.3 Other Non-Federal Match ......................................................................................................... 8

2.1.4 Stand-Alone Infrastructure........................................................................................................ 8

2.2 Infrastructure Program Requirements .............................................................................................. 8

2.2.1 Tie-back to the Disasters .......................................................................................................... 8

2.2.2 Overall Housing Recovery ...................................................................................................... 10

2.2.3 Meeting a National Objective .................................................................................................. 10

2.2.4 Eligible Applicants................................................................................................................... 11

2.2.5 Infrastructure and Multifamily Housing Program Coordination............................................... 13

2.2.6 Duplication of Benefits ............................................................................................................ 13

2.2.7 Recapture of Funds ................................................................................................................ 14

2.3 CDBG-DR and Cross-Cutting Federal Requirements .................................................................... 14

2.3.1 Americans with Disabilities Act............................................................................................... 15

2.3.2 Copeland Act’s Anti-Kickback Provision................................................................................. 15

2.3.3 Contract Work Hours and Safety Standards Act .................................................................... 15

2.3.4 Force Account Labor .............................................................................................................. 15

2.3.5 Equal Employment Opportunity Act........................................................................................ 16

2.3.6 Minority- and/or Women-Owned Business Enterprises.......................................................... 16

2.3.7 Fair Labor Standards Act of 1983, As Amended .................................................................... 17

2.3.8 Davis-Bacon Labor Standards................................................................................................ 18

2.3.9 Limited English Proficiency..................................................................................................... 19

2.3.10 Section 3 of the HUD Act of 1968........................................................................................... 19

2.3.11 Fair Housing............................................................................................................................ 21

2.3.12 Residential Anti-Displacement................................................................................................ 22

2.3.13 Uniform Relocation Act and Real Property Acquisition .......................................................... 22

2.3.14 Financial Management ........................................................................................................... 22

2.3.15 Insurance and Property Management .................................................................................... 23

2.3.16 Recordkeeping, Retention, and File Management ................................................................. 23

2.3.17 Procurement Policy................................................................................................................. 25

2.3.18 Audit Trail................................................................................................................................ 25

2.3.19 Conflicts of Interest and Confidentiality .................................................................................. 26

2.3.20 Environmental Review ............................................................................................................ 26

2.4 FEMA PA Match ............................................................................................................................. 29

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2.4.1 FEMA PA Categories.............................................................................................................. 29

2.4.2 Eligible Activities ..................................................................................................................... 29

2.4.3 Eligible Projects ...................................................................................................................... 29

2.4.4 Eligible Use of Funds.............................................................................................................. 30

2.4.5 Ineligible Uses of Funds ......................................................................................................... 30

2.4.6 Labor Compliance................................................................................................................... 30

2.5 FEMA HMGP Match ....................................................................................................................... 30

2.5.1 Eligible Uses of Funds ............................................................................................................ 30

2.5.2 Ineligible Uses of Funds ......................................................................................................... 31

2.6 Other Non-Federal Share Match .................................................................................................... 31

2.6.1 Eligible Uses of Funds ............................................................................................................ 31

2.6.2 Ineligible Uses of Funds ......................................................................................................... 31

2.7 Determining the Non-Federal Share Amount ................................................................................. 32

2.8 Stand-Alone Infrastructure.............................................................................................................. 32

2.8.1 Eligible Uses of Funds ............................................................................................................ 32

2.8.2 Ineligible Uses of Funds ......................................................................................................... 33 3 Implementation Policies ..................................................................................................................... 33

3.1 Project Selection............................................................................................................................. 33

3.1.1 NOI Process............................................................................................................................ 33

3.1.2 NOI Requirements .................................................................................................................. 34

3.1.3 NOI Review............................................................................................................................. 36

3.1.4 NOI Approval .......................................................................................................................... 37

3.1.5 Allocations from NOI............................................................................................................... 38

3.1.6 Authorizing Resolution & MSA................................................................................................ 38

3.1.7 Project Application Process .................................................................................................... 39

3.1.8 Application Requirements....................................................................................................... 39

3.1.9 Application Review.................................................................................................................. 40

3.1.10 Application Award Methodology ............................................................................................. 40

3.1.11 Notice to Proceed ................................................................................................................... 41

3.1.12 Appeals Process ..................................................................................................................... 41

3.2 Subrecipient Due Diligence ............................................................................................................ 41

3.3 Technical Assistance to Subrecipients ........................................................................................... 41

3.4 Activity Delivery Costs .................................................................................................................... 42

3.4.1 Allowable Costs After MSA and Before NTP.......................................................................... 42

3.4.2 Authorization to Incur Costs Before an Executed MSA.......................................................... 42

3.4.3 Subrecipient ADCs with Incomplete Projects ......................................................................... 43 4 Program Operations........................................................................................................................... 43

4.1 Subrecipient Agreements ............................................................................................................... 43

4.2 Agreements with Contractors or Other Parties............................................................................... 44

4.3 Document Retrieval Process .......................................................................................................... 44

4.4 Disbursement of Funds................................................................................................................... 45

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4.5 Reporting Requirements................................................................................................................. 45

4.6 Monitoring and Compliance............................................................................................................ 45 HCD’s Monitoring of Subrecipients .................................................................................................... 46 Subrecipient Monitoring Responsibilities ........................................................................................... 47

4.7 Record Keeping .............................................................................................................................. 48

4.8 Grant Closeout................................................................................................................................ 49 Closeout of an Individual Activity ....................................................................................................... 49 Closeout of an Agreement ................................................................................................................. 50

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2018 CDBG-DR Infrastructure Program Policies and Procedures 1 Community Development Block Grant - Disaster Recovery 2018 Infrastructure Program
Policies and Procedures Manual
General

1.1.Purpose and Scope
This document is designed to address program policies and provide general guidance for the use of Community Development Block Grant – Disaster Recovery (CDBG-DR) supplemental funds appropriated under Public Laws 115-254 and 116-20, Catalog of Federal Domestic Assistance Numbers 14.228 for State CDBG grantees and 14.218 for Entitlement CDBG Grantees.

On January 27, 2020, United States Department of Housing and Urban Development (HUD) published Federal Register Notice 85 FR 4681 allocating $1,017,399,000 in CDBG-DR funding, related to the Federal Emergency Management Agency (FEMA) Major Disaster Declarations DR-4382 from July to September 2018 and DR-4407 in November 2018. The California Department of Housing and Community Development (HCD) is the grantee responsible for administering the CDBG-DR funds allocated to the State of California. CDBG-DR supports the State of California’s unmet recovery needs related to the Federal Emergency Management Agency (FEMA) Major Disaster Declarations DR4382 from July to September 2018 and DR-4407 in November 2018.

Recognizing unmet infrastructure recovery needs, related to DR-4382 from July to September 2018 and DR-4407 in November 2018, HCD allocated $317,428,488 of the CDBG-DR funding to the Disaster Recovery Infrastructure Program (DR-Infrastructure).

DR-Infrastructure projects are funded to assist with meeting the unmet infrastructure needs of local communities. This program provides funding for FEMA Public Assistance (PA) match projects, FEMA Hazard Mitigation Grant Program (HMGP) match projects, other non-FEMA match projects, and stand-alone projects identified by local communities impacted by DR-4382 or DR-4407. HUD requires that 70% of the total grant-wide funds are spent on activities that meet the low- and moderate-income (LMI) national objective and 80% of grant funds are expended in the HUD-identified most impacted and distressed (MID) areas. The MID areas for the 2018 DR-Infrastructure Program include the entire counties of Butte, Shasta, Los Angeles and Lake.

Additionally, for CDBG-DR funds to be used as the non-federal cost share local match, the project must be a HUD eligible activity and must meet a HUD national objective, per CDBG-DR rules and regulations. Similarly, the project must fully comply with all applicable federal rules and regulations, to include Davis Bacon and related acts, Section 3, Section 504, procurement, environmental review and all other CDBG-DR, cross-cutting, state and local applicable statutes, rules and regulations.

This document describes program policy and provides guidance for the DR-Infrastructure Program. Subrecipients should review all applicable Federal regulations, disaster specific

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2018 CDBG-DR Infrastructure Program Policies and Procedures 2 Federal Register Notices and HCD’s CDBG-DR Action Plan and Grant Administration Manual for detailed discussions of CDBG-DR procedures and requirements.

1.2.Terms and Definitions
Agreement: HCD utilizes multiple agreement templates as contracts with Subrecipients, including, but not limited to, Standard Agreements and Master Standard Agreements. The type of Subrecipient agreement used depends on the type and number of projects, among other factors. HCD determines the type(s) of Agreement used on a case-by-case basis in the reasonable exercise of HCD’s discretion. “Agreement” is used throughout this manual as a general term when either a Standard Agreement or Master Standard Agreement, or any other agreement template, may be appropriate given the context of the section.

Activity Delivery Costs (ADC): ADCs are allowable costs incurred for implementing and carrying out eligible CDBG activities. ADCs cover the costs of staff directly carrying out the activity in addition to engineering, design, architecture, and environmental services that are necessary for successful completion of the activity. ADCs must be allocable to a CDBG-assisted activity, meet a national objective, and meet all other CDBG program requirements.

Application: A formal document used to assess viability of an individual project and includes final construction design plans, identify and document all funding sources, and provide additional documentation to show compliance with state and federal regulations.

Area Median Income (AMI): means the median family income for specific geographic areas, adjusted for household size, as calculated by HUD, and published annually by HCD for the CDBG program at https://www.hcd.ca.gov/grants-and-funding/income-limits Authorization to Use Grant Funds (AUGF): is the written notification from HCD to the subrecipient, indicating that a specific project has met HCD’s prerequisites and authorizing the subrecipient to expend CDBG-DR funds on that specific project.

Authorizing Resolution: is a formal resolution of the subrecipient’s highest authority, usually the city council or county board of supervisors, authorizing the subrecipient to accept CDBG-DR funding and the responsibilities that attach, thereto, in general and authorizing people performing specific roles to act on its behalf, including, but not limited to, signing the Agreement with HCD.

CALGreen: is California’s first green building code and first in the nation state mandated green building code. It is formally known as the California Green Building Standards Code, Title 24, Part 11, of the California Code of Regulations. For more information, visit https://www.dgs.ca.gov/BSC/Codes

California Environmental Quality Act (CEQA): is a statute that requires state and local agencies to identify the significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 3 Code of Federal Regulations (CFR): is the acronym used for the Code of Federal Regulations.

Contractor: a properly licensed person or company that Subrecipients or developers hire to undertake a contract to provide materials or labor to perform a service or do a job.

Community Development Block Grant Program - Disaster Recovery (CDBG-DR):

Assistance from the U.S. Department of Housing and Urban Development (HUD) to help the state recover from presidentially declared disasters, especially in low-income areas, subject to availability of supplemental appropriations.

Cross-Cutting Requirements: Regulations outside of CDBG-DR that apply to CDBG-DR programs. These requirements pertain to financial management, procurement, environmental, labor, acquisition, relocation, fair housing, and non-discrimination.

Davis-Bacon Wage Requirements: The Davis Bacon and Related Acts (DBRA) requires all contractors and subcontractors performing work on federal or District of Columbia contracts or federally assisted contracts in excess of $2,000 for construction, alteration, or repair (including painting and decorating) to pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits for corresponding classes of laborers and mechanics employed on similar projects in the area. The prevailing wage rates and fringe benefits are determined by the Secretary of Labor for inclusion in covered contracts. Contractors and subcontractors on Davis-Bacon Act prime contracts in excess of $150,000, or related Act contracts in excess of $100,000, are also required, pursuant to the Contract Work Hours and Safety Standards Act, to pay laborers and mechanics one and one-half times their basic rates of pay for all hours over 40 worked on a covered contract in a workweek.

Eligible Applicant: means any city or county governments that applies for funds pursuant to applicant eligibility section. (See Also: Subrecipient)

Duplication of Benefits (DOB): Financial assistance received from another source that is provided for the same purpose as the CDBG-DR funds. The Robert T. Stafford Disaster Assistance and Emergency Relief Act (Stafford Act) prohibits any person, business concern or other entity from receiving financial assistance from CDBG Disaster Recovery funding with respect to any part of the loss resulting from a major disaster as to which he/she has already received financial assistance under any other program or from insurance or any other sources. It is an amount determined by the program that may result in the reduction of an award value.

Environmental Review Record (ERR): A permanent set of files containing all documentation pertaining to the environmental review compliance procedures conducted and environmental clearance documents as required by CEQA and NEPA regulations. (See California Environmental Quality Act and National Environmental Policy Act).

Federal Emergency Management Agency (FEMA): An agency of the United States Department of Homeland Security. The agency's primary purpose is to coordinate the

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2018 CDBG-DR Infrastructure Program Policies and Procedures 4 response to a disaster that has occurred in the United States and that overwhelms the resources of local and state authorities.

FEMA Hazard Mitigation Grant Program (HMGP): FEMA HMGP projects are those that result in protection to public or private property, have a beneficial impact upon the designated disaster area, whether or not located in the designated area, and meet the minimum project criteria in 44 CFR Section 206.434(b).

FEMA Public Assistance (FEMA PA): Provides grants to state, tribal, territorial, and local governments, and certain types of private non-profit organizations so that communities can quickly respond to and recover from major disasters or emergencies.

Through the program, FEMA provides supplemental federal disaster grant assistance for debris removal, life-saving emergency protective measures, and the repair, replacement, or restoration of disaster-damaged publicly owned facilities, and the facilities of certain private non-profit organizations.

Grantee: The term ‘‘grantee’’ refers to HCD.

Grants Network: The Department’s electronic grant management system and application portal.

HUD Public Facilities Activity and Match Activity:

• HCDA Section 105(a)(2) – Public Facilities and Improvements: the acquisition, construction, reconstruction, or installation (including design features and improvements with respect to such construction, reconstruction, or installation that promote energy efficiency) of public works, facilities (except for buildings for the general conduct of government), and site or other improvements.
• HCDA Section 105(a)(9) – Payment of Non-Federal Share: payment of the non-Federal share required in connection with a Federal grant-in-aid program undertaken as part of activities assisted under this title.

Low- and Moderate-Income (LMI): Low- and moderate-income people are those having incomes not more than the “moderate-income” level (80% Area Median Family Income) set by the federal government for the HUD-assisted Housing Programs. This income standard changes from year to year and varies by household size, county and the metropolitan statistical area.

Master Standard Agreement (MSA): The contractual arrangement between HCD and the Subrecipient which sets forth the terms and conditions by which CDBG-DR funds are utilized. The MSA allows for multiple projects to be completed under one agreement.

Minority- and/or Women-Owned Business Enterprise (M/WBE): A business that is owned and controlled (minimum of 51% ownership) by a member of a minority group, or women.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 5 Most Impacted and Distressed (MID): An area that meets the definition of Most Impacted and Distressed set by HUD in the Federal Register Notice. For purposes of the unmet needs allocation, HUD has defined Most Impacted and Distressed as an area (county or zip code) that meets the following criteria:

Individual Assistance/Individual and Households Program (IHP) designation. HUD has limited allocations to those disasters where FEMA had determined the damage was sufficient to declare the disaster as eligible to receive IHP funding.

Concentrated damage. HUD has limited its estimate of serious unmet housing need to counties and zip codes with high levels of damage, collectively referred to as ‘‘most impacted areas’’. For this allocation, HUD is defining most impacted areas as either most impacted counties—counties exceeding $10 million in serious unmet housing needs—and most impacted zip codes—zip codes with $2 million or more of serious unmet housing needs. The calculation of serious unmet housing needs is described below.

Disasters meeting the most impacted threshold. Only 2018 disasters within the threshold are funded: a. One or more most impacted county, and/or b. An aggregate of most impacted zip codes of $10 million or greater than was declared by the President to be a major disaster area under the Stafford Act for a disaster event occurring in 2018.

National Environmental Policy Act (NEPA): Establishes a broad national framework for protecting the environment. NEPA's basic policy is to assure that all branches of government consider the environment prior to undertaking any major federal action that could significantly affect the environment.

National Flood Insurance Program (NFIP): Created by Congress in 1968 to reduce future flood damage through floodplain management and to provide people with flood insurance through individual agents and insurance companies. FEMA manages the NFIP.

Notice of Intent (NOI): Process by which Eligible Applicants submit their eligible DRInfrastructure Program projects and project Priority Level through Grants Network for Program eligibility and funding allocation.

Notice to Proceed (NTP): The NTP is a binding document, approved as to form a component of the Agreement between the Subrecipient and HCD by committing funds to a specific project and gives official notice to the subrecipient that they can begin work on the project.

Permanent work: FEMA’s Public Assistance program designation for “recovery work” which restores or rebuilds a damaged asset and is comprised of five categories: roads and bridges (Category C), water control facilities (Category D), buildings and equipment (Category E), utilities (Category F), and parks, recreation facilities, and other facilities (Category G).

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2018 CDBG-DR Infrastructure Program Policies and Procedures 6 Program Portal: A web-based portal via Grants Network to the DR-Infrastructure overview and program-specific documents, NOI, and Project Application.

Project: Per 49 CFR 24.2 a (22), project means any activity or series of activities undertaken by a Federal Agency or with Federal financial assistance received or anticipated in any phase of an undertaking in accordance with the Federal funding Agency guidelines.

Project Worksheet (PW): FEMA form used to document the scope of work and cost estimate for a FEMA Public Assistance project. This form supplies FEMA with the information necessary to approve the scope of work and itemized cost estimate prior to funding. The PW may include mitigation measures up to 100% of the eligible PW value.

Request for Proposal (RFP): A procurement document designed to solicit proposals for services where cost is considered as a factor.

Request for Release of Funds (RROF): An environmental review term for a process used by Responsible Entities (the state) when requesting the release of funds and the authority to use such funds for HUD programs identified by statutes that provide for the assumption of the environmental review responsibility by units of local government and states. The approval of the RROF is required before environmental clearance may be provided to a recipient of CDBG-DR funds.

Responsible Entity (RE): Under the ERR requirements at 24 CFR Part 58, the term “responsible entity” (RE) means the agency receiving CDBG assistance. The responsible entity must complete the environmental review process. The RE is responsible for ensuring compliance with NEPA and the Federal laws and authorities, for issuing the public notification, for submitting the request for release of funds and certification, when required, and for ensuring the Environmental Review Record (ERR) is complete.

Section 3: is a provision of the Housing and Urban Development (HUD) Act of 1968 that helps foster local economic development, neighborhood economic improvement, and individual self-sufficiency. The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent feasible, provide job training, employment, and contracting opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods.

Stand-Alone Project: Non-match, stand-alone projects are those eligible infrastructure projects critical to address identified unmet disaster recovery needs and increase the resilience of cities and counties and are not funded by other federal recovery programs.

Standard Agreement: The contractual arrangement between HCD and the Subrecipient which sets forth the terms and conditions by which CDBG-DR funds are utilized. The Standard Agreement allows for one project to be completed under the agreement.

Subrecipient: The term ‘‘Subrecipient’’ refers to a unit of local government receiving a direct award from HCD and providing grant awards to developers. Public or private

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2018 CDBG-DR Infrastructure Program Policies and Procedures 7 nonprofit agency, authority or organization, or community-based development organization receiving CDBG-DR funds from the recipient or another subrecipient to undertake CDBG-DR eligible activities (see 24 CFR 570.500(c)).

A non-Federal entity that receives a subaward from a pass-through entity to carry out part of a Federal program (see 2 CFR 200.93). A subrecipient is a grantee’s partner in disaster recovery.

Uniform Relocation Act (URA): A federal law that establishes minimum standards for federally funded programs and projects that require the acquisition of real property (real estate) or the displacement of persons from their homes, businesses, or farms.

Urgent Need Resolution: A formal resolution of the subrecipient’s highest authority, usually the city council or county board of supervisors, establishing and asserting as true and sufficient justification the reasons stated in the resolution for undertaking one or more of subrecipient’s projects under the Urgent Need National Objective.

U.S. Department of Housing and Urban Development (HUD): Federal department through which the CDBG-DR funds are provided to HCD.

Program Requirements

1.3.Infrastructure Program Activities
The DR-Infrastructure Program utilizes CDBG-DR funds to address two needs of Eligible Applicants: 1.) providing support to disaster-impacted units of local government and other eligible entities with payment of their non-federal local cost share (FEMA PA Match, FEMA HMGP Match, and other federal grants) requirement so that they can access other disaster recovery resources without incurring an unexpected financial burden to address recovery needs; and 2.) providing funds to units of local government to develop “StandAlone” infrastructure projects, which can be funded with up to 100% CDBG-DR funding, that are necessary to address unmet disaster recovery needs from impacts tied to DR4382 or DR-4407. To address the needs of Eligible Applicants described in this paragraph, the DR-Infrastructure Program funds are used for the following project types:
• The non-federal local cost share match on disaster-related federal grants (FEMA and other federal grants); and
• Non-match, Stand-Alone Infrastructure projects that address identified unmet 2018 disaster recovery needs and increase the resilience of cities and counties.

2.1.1 FEMA PA Match
The FEMA Public Assistance (PA) Grant Program supports communities’ recovery from major disasters by providing them with grant assistance for debris removal, life-saving emergency protective measures, and restoring public infrastructure. FEMA provides grants to the State and its sub-applicants (cities, counties, school districts, etc.) to address the long-term rebuilding, recovery, and resilience needs of the communities. Projects that are approved for FEMA PA Match in FEMA Categories C through G are eligible for nonTOP-PID SUBRECIPIENT AGREEMENT

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2018 CDBG-DR Infrastructure Program Policies and Procedures 8 federal share, local match funding under the DR-Infrastructure Program. See Section 2.4 for a full description of eligible FEMA PA Match projects, activities, and compliance.

2.1.2 FEMA HMGP Match
FEMA Hazard Mitigation Grant Program (HMGP) activities are designed to help communities implement hazard mitigation measures following a Presidential Major Disaster Declaration in the areas of the state, tribe, or territory requested by the Governor or Tribal Executive. The key purpose of HMGP is to enact mitigation measures that reduce the risk of loss of life and property from future disasters. Projects that are approved for FEMA HMGP Match are eligible for non-federal, local match funding under DR-Infrastructure. See Section 2.5 for a full description of eligible FEMA HMGP Match projects, activities, and compliance.

2.1.3 Other Non-Federal Match
HCD may fund the local portion of the non-federal share for other federally grantfunded infrastructure projects with a tie-back to the DR-4382 or DR-4407 disaster events. Grants include, but are not limited to, projects funded by the Federal Highway Administration (FHWA) and the United States Department of Agriculture (USDA).

2.1.4 Stand-Alone Infrastructure
Non-match, Stand-Alone CDBG-DR eligible infrastructure projects with a tie-back to the 2018 disasters that can be funded with up to 100 percent of CDBG-DR funding are eligible for the DR-Infrastructure Program. These non-match, Stand-Alone Infrastructure projects are critical to address identified unmet disaster recovery needs and increase the resilience of cities and counties that are not funded by other federal recovery programs.

Stand-Alone Infrastructure projects can include FEMA PA or FEMA HMGP projects that were determined ineligible by FEMA, but all projects are subject to review for a tie-back to the 2018 disasters to confirm that they support or expand community resilience and that they are consistent with CDBG-DR requirements and HCD’s policies and procedures. All Stand-Alone Infrastructure projects require an environmental review be completed by the Subrecipient. See Section 2.6 for a full description of eligible Stand-Alone Infrastructure projects, activities, and compliance.

2.2 Infrastructure Program Requirements

2.2.1 Tie-back to the Disasters
All projects funded through the DR Infrastructure Program must in some way respond to a direct impact from the following federally declared disasters:
• DR-4382 California Wildfires and High Winds (July 23, 2018 – September 19, 2018)
• DR-4407 California Wildfires (November 08, 2018 – November 25, 2018) The FEMA PA program requires clear documentation showing a direct disaster-related impact as a prerequisite for entry into the program. Only after an impact threshold has been met does FEMA consider making disaster funds available to applicants. It is

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2018 CDBG-DR Infrastructure Program Policies and Procedures 9 assumed that if the potential applicant received funding through the FEMA PA program for the same project for which a DR-application is submitted, that same project has a tie to one of the declared disasters. For FEMA PA Match projects, the tie to the 2018 disasters is documented by FEMA’s approval of the Project Worksheet and need not be separately established for purposes of establishing eligibility for CDBG-DR funding.

For Stand-Alone projects, HMGP Match projects, and other Federal match projects, the tie-back to the 2018 disasters is documented as part of the NOI and application processes and stored in the program file of Grants Network. Documentation that shows a tie to the disaster can include, but is not limited to, a damage estimate prepared by city/county staff or contractor, reconstruction estimates for physical losses by engineers or other similar professionals, insurance claims, or photographic evidence of the physical impact of the disaster, or disaster-related activities, on the project with clear dates and timeline.

Tie-Back - Road Repair Project
For DR-Infrastructure to fund road repair projects, showing a tie-back to the disasters justified by the damage or a decreased lifespan of a road, is required. For example, if road repair is due to damage from disaster related debris removal, the applicant must demonstrate a tie-back to the disaster(s) by submitting both of the following:

1. Documentation of location: Shows that the debris removal occurred on the roads being submitted for funding to repair/rehabilitate/replace, such as:
• A debris removal plan showing the respective road as the primary debris removal route and/or,
• Confirmation from city or county officials, independent inspectors, U.S. Army Corps, Cal OES, FEMA, CalRecycle, or other governmental entity that the respective road was used as a debris removal route.

2. Documentation of damage: Shows the impact of the damage on the road lifespan.

At least one of the following shall be provided to document damage:
• Before and after photos of the impacted roads, including a date stamp on each photo,
• A dated inspection report following the disaster/debris removal identifying damage to the roads,
• A dated inspection report providing evidence that the lifespan of the road has been decreased due to debris removal operations and the replacement or repair of the road is now necessary for the safety and security of drivers of the road,
• Dated inspection reports that describes the damage from during or after the disaster event,
• History of Pavement Condition Index (PCI), or other road condition index, for the roads being submitted, and/or
• Other documentation supporting the project’s tie-back to the disasters as permitted by the Department.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 10 Indirect Tie-Back – Population Shifts
Eligible Applicants may submit indirect tie backs to the disaster that are a result of population shifts due to DR-4382 and DR-4407. For such indirect tie backs, Eligible Applicants are required to use one of two options as outlined below:

1. Option one: Use publicly available data from a government entity or research center acceptable to HCD to determine whether the jurisdiction experienced a sustained population increase, of at least 24 months, reasonably attributable to an influx of 2018 disaster survivors.

2. Option two: Eligible Applicants provide alternative data documenting a sustained population increase, of at least 24 months, reasonably attributable to an influx of 2018 disaster survivors, using a survey methodology acceptable to HCD (i.e., reasonably designed to produce an accurate estimate).

2.2.2 Overall Housing Recovery
For all projects, HCD reviews how each project supports the overall housing recovery from DR-4382 or DR-4407. Projects that support overall housing recovery are infrastructure projects that enable the recovery of residential areas by meeting transportation needs, restoring essential utilities, and addressing other public infrastructure and facility needs. Examples of infrastructure projects that support overall housing recovery include, but are not limited to public roads, school facilities, stormwater drainage improvements, potable water, sanitary sewer, electric and gas utilities, wastewater treatment facilities, parks, and other public facilities that are important publicly owned assets.

2.2.3 Meeting a National Objective
In accordance with 24 CFR 570.208, all CDBG-DR funded activities must meet a national objective as required under 24 CFR 570.200(a)(2). Under section 101(c) of the authorizing Act (42 U.S.C. 5301) the CDBG program must ensure that the funded activity meets one of the named national objectives. The two qualifying national objectives are:
• Benefiting low- and moderate-income persons; and
• Meeting a need having a particular urgency (referred to as Urgent Need).

National
Objective
Category
Subcategory Required Documentation
LMI Benefit LMI Area
Benefit
1) Boundaries of service area of activity/project
2) Census data including the persons and
percentage LMI
3) Evidence area is primarily residential
4) Survey documentation (if applicable)
LMI Benefit LMI Limited
Clientele
Documentation that the beneficiaries are or are
presumed to be LMI by category (e.g. senior
housing, homeless shelters, etc.).

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2018 CDBG-DR Infrastructure Program Policies and Procedures 11 LMI Benefit LMI Housing If applicable, income documented for all household members 18 years of age and older.

Urgent Need Urgent Need
Resolution from Subrecipient’s city council, county
board, or similar governing body stating that no
other funds are available for the proposed project.

The DR-Infrastructure Program must demonstrate that funded activities meet one of the two National Objectives. The types of records to be maintained for each CDBG-DR funded project depends on the National Objective category for which it qualifies. For all DR-Infrastructure Program projects, the final determination of the National Objective is completed during the application process based on HUD guidance. Eligible Applicants also need to provide preliminary National Objective documentation as part of the NOI process to support the Priority Level of the project.

Determining the service area of an activity involves consideration of the nature, location, and accessibility of each activity, and the information contained within the project’s description and scope of work (contained in the Project Worksheet for FEMA PA projects).

Service areas are based on the beneficiaries of recovery activities and/or types of facilities (e.g., work on roads and bridges, repair/replacement of public utilities, etc.); geographic features (e.g., locations of highway, rivers, hillsides, etc.); and local population characteristics (e.g., population size and density). Wherever possible, HCD leverages predefined service areas mapped by a government agency or utility service providers.

HCD anticipates that projects that qualify under the Low- and Moderate-Income (LMI) National Objective are primarily using the Low- and Moderate-Income Area Benefit (LMA) category. Once a project’s service area is identified, HUD Low- and Moderate-Income Summary Data is used to determine if at least 51 percent of the residents are low- and moderate-income persons.

The Urgent Need National Objective requires that the project is designed to meet community development needs having a particular urgency. In the absence of substantial evidence to the contrary, a project is considered to address this National Objective if the design of the project is certified to alleviate existing conditions which pose a serious and immediate threat to the health or welfare of the community which are of recent origin or which recently became urgent, that the Subrecipient is unable to finance the activity on its own, and that other sources of funding are not available. A condition is generally considered to be of recent origin if it developed or became critical within 18 months preceding the certification by the Subrecipient.

2.2.4 Eligible Applicants
The eligible applicants for 2018 Infrastructure Recovery Program funds are municipal and county governments that received FEMA Public Assistance funds for permanent infrastructure projects (Categories C through G) related to the DR-4382 or DR-4407 disaster events and/or are listed below and as a subrecipient

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jurisdiction under the 2018 CDBG Disaster Recovery Multifamily Housing Program.1
Eligible Applicants

1. Butte County

2. Lake County

3. Los Angeles County

4. Shasta County

5. Ventura County

6. City of Agoura Hills

7. City of Anderson

8. City of Calabasas

9. City of Chico

10.City of Gridley

11.City of Lakeport

12.City of Los Angeles

13.City of Malibu

14.City of Oroville

15.City of Redding

16.City of Shasta Lake

17.City of Thousand Oaks

18.City of Westlake Village

19.Town of Paradise
Following the NOI process and allocations being announced, Eligible Applicants that receive an allocation sign an Agreement with HCD to become Subrecipients. HCD will solicit project applications from Subrecipients in accordance with the application requirements outlined in Section 3.1.8. Only Subrecipients are eligible to submit project applications to HCD.

Subrecipients of HCD may submit applications with a local government, special district, or other similar entity as a secondary subrecipient for a project that meets the eligibility criteria outlined for FEMA PA Match projects (see Section 2.4), FEMA HMGP Match projects (see Section 2.5), Other Federal Non-Federal Share Match projects (See Section

2.6), and Stand-Alone Infrastructure projects (see Section 2.8). HCD in its full discretion will determine whether a proposed entity is an eligible secondary subrecipient. If the application is approved by HCD, the Subrecipient may enter into an agreement with the secondary subrecipient for implementing the project.

Subrecipients of HCD cannot receive an NTP for a project with a secondary subrecipient unless the Subrecipient meets the following two (2) conditions:

1. The Subrecipient provides a written monitoring plan of the secondary subrecipient for the proposed project(s). The monitoring plan must demonstrate 1 Multifamily Housing Program subrecipient list can be found on pages 133 and 134 of the State of California 2018 CDBG-DR Action Plan: https://hcd.ca.gov/community-development/disaster-recovery-programs/cdbg-dr/cdbg-dr2018/docs/hcd-cdbg-dr-2018_ap-final-ada-english.pdf 2018 CDBG-DR Infrastructure Program Policies and Procedures 12 TOP-PID SUBRECIPIENT AGREEMENT

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2018 CDBG-DR Infrastructure Program Policies and Procedures 13 that the Subrecipient has sufficient understanding of the program requirements, the applicable federal and state regulations, and the capacity to monitor the work of its subrecipients.

2. Subrecipient provides the written agreement between the Subrecipient and the secondary subrecipient. If a Subrecipient is a CDBG entitlement community and has a subrecipient agreement in place, they may use the agreement as a template or amend an existing agreement to include CDBG-DR funds.

If the preceding two (2) conditions are met, the Subrecipient can make the units of local government, special districts, or other similar entities a secondary subrecipient and can use funds from the Subrecipient’s DR-Infrastructure allocation for individual projects approved by HCD during the project application process and for which HCD issues a Notice to Proceed. For all cases in accordance with 83 FR 5844 Section 51(k), HCD must also assess the Subrecipient’s capacity to execute and monitor the proposed project(s) as a factor in the project review.

2.2.5 Infrastructure and Multifamily Housing Program Coordination DR-Infrastructure funds are provided to units of local government for:
1) The non-federal local cost share match on disaster-related federal grants (FEMA and other federal grants); and
2) Non-match, Stand-Alone infrastructure projects that address identified unmet 2018 disaster recovery needs and increase the resilience of cities and counties.

DR-MHP funds are provided to assist with meeting the unmet rental housing need, including the needs of individuals displaced from rental homes and individuals who became homeless as the result of the disasters.

For infrastructure activities on approved DR-MHP projects, the subrecipient (i.e., the unit of local government that is the eligible applicant allocated and/or awarded funds) determines the responsibility of the infrastructure activity implementation as part of the DR-MHP project’s scope of work. For infrastructure activities that are the responsibility of the unit of local government, DR-Infrastructure funds can be used if the project meets the DR-Infrastructure program eligibility requirements and criteria. For infrastructure activities that are the responsibility of the qualified developer and contractor as part of the approved DR-MHP project scope of work, DR-MHP funds can be used but DR-Infrastructure may not be used for activities that are the responsibility of the developer/contractor.

2.2.6 Duplication of Benefits
In accordance with the Stafford Act requirements, all activities funded with CDBG-DR must undergo a Duplication of Benefits (DOB) review and a calculation must be completed prior to funding awards and again prior to close out. DOB occurs when a program beneficiary receives assistance from multiple sources for a cumulative amount that exceeds the total need for a particular recovery purpose. This includes all benefits available to a person or entity, including cash and other resources such as insurance proceeds, grants, FEMA, other local, state, or Federal programs, and private or nonprofit charity organizations (see Federal Register notice published November 16, 2011 (76 FR

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71066) and Federal Register notice published June 20, 2019 (84 FR 28848)) to be identified and considered to prevent a duplication of benefit. The amount of the duplication is the amount of assistance provided in excess of the need. It is HCD’s responsibility to ensure that the DR-Infrastructure Program provides assistance only to the extent that the disaster recovery need has not been fully met by funds that have already been paid, or will be paid, from another source.

The application must document all funds obtained for the same purpose as the DRInfrastructure Program project from the date of the disaster until the date of the application. Additionally, HCD, in coordination with the Eligible Applicant, performs a DOB review prior to issuing funding and again prior to project closeout to ensure that duplicative assistance is not provided for the DR-Infrastructure project in subsequent phases. HCD also reserves the right to require that the Subrecipient perform additional DOB checks throughout the course of the project’s period/performance to ensure there is no duplicative assistance during the course of the project. To address any potential duplication, the agreement includes provisions requiring repayment equal to any assistance later received for the same purpose as the CDBG–DR funds.

2.2.7 Recapture of Funds
A Subrecipient may be required to repay all or a portion of the funds received. The reasons for recapture include, but are not limited to, the following:
• Subrecipient does not comply with the terms of the Agreement; • A Subrecipient withdraws from the Program prior to completion of the project and/or fails to meet a National Objective;
• A project does not meet the requirements specified in this section, Section 2 Program Requirements;
• A Subrecipient is found to have used program funds for an ineligible activity or cost;
• A Subrecipient receives assistance for the same purpose as the funded DRInfrastructure Program project including but not limited to insurance settlement funds, FEMA assistance, nonprofit assistance (a DOB); and • Funds are remaining after the project is completed, the expenditure deadline has passed, or the agreement has expired.

The method of recapturing funds and the timeframe for doing so are determined on an individual project basis. However, the recapture method and timeframe are consistent with 2 CFR part 200 and other applicable cost principles. Complete recapture provisions are included in the Agreement with the Subrecipient and must also be included in any agreements between the Subrecipient and other parties.

2.3 CDBG-DR and Cross-Cutting Federal Requirements
HCD and its Subrecipients must comply with all applicable federal regulations and laws, including but not limited to the identified cross-cutting federal requirements below. Further, all DR-Infrastructure Program projects must comply with any and all applicable State of California, and locally adopted codes, regulations, and ordinances. This section provides 2018 CDBG-DR Infrastructure Program Policies and Procedures 14 TOP-PID SUBRECIPIENT AGREEMENT

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2018 CDBG-DR Infrastructure Program Policies and Procedures 15 a summary of the significant and applicable cross-cutting federal requirements for all DRInfrastructure Program activities.

2.3.1 Americans with Disabilities Act
The Americans with Disabilities Act of 1990 (ADA) modifies and expands the Rehabilitation Act of 1973 to prohibit discrimination against "a qualified individual with a Disability" in employment and public accommodations. The ADA requires that an individual with a physical or mental impairment who is otherwise qualified to perform the essential functions of a job, with or without reasonable accommodation, be afforded equal employment opportunity in all phases of employment. HCD ensures that reasonable modifications or changes to policies and procedures are made in order to guarantee people with disabilities equal access to services and programs. Additionally, all activities are accessible, both structurally and administratively, to persons with disabilities. The requirement of ADA applies to all HCD, the Subrecipients, and vendors.

2.3.2 Copeland Act’s Anti-Kickback Provision
The “Anti-Kickback” provision of the Copeland Act (40 USC, Chapter 3, Section 276c and 18 USC, Part 1, Chapter 41, Section 874; and 29 CFR Part 3) requires that workers be paid weekly, that deductions from workers’ pay be permissible, and that contractors maintain and submit weekly payrolls.

The U.S. Department of Labor describes the Copeland Act’s Anti-Kickback as prohibiting contractors and subcontractors performing work on covered contracts from in any way inducing an employee to give up any part of the compensation to which he or she is entitled. The Copeland Act and implementing regulations also require contractors and subcontractors performing on covered contracts to pay their employees on a weekly basis and in cash or a negotiable instrument payable on demand and to submit weekly payroll reports of the wages paid to their laborers and mechanics during the preceding payroll period. Additionally, the Act’s regulations at 29 CFR §§ 3.5 and 3.6 list payroll deductions that are permissible without the approval of DOL and those deductions that require consent of DOL and prohibit all other payroll deductions.2

2.3.3 Contract Work Hours and Safety Standards Act
The Contract Work Hours and Safety Standards Act (40 USC, Chapter 5, Sections 326- 332; and 29 CFR Part 4, 5, 6 and 8; 29 CFR Part 70 to 240) applies to contracts over $100,000 and requires that workers receive overtime compensation (time and one-half pay) for hours they have worked in excess of 40 hours in one week. Violations under this Act carry a liquidated damages penalty ($10 per day per violation).

2.3.4 Force Account Labor
Force account labor occurs when a unit of local government is a CDBG-DR subrecipient or PA Match applicant uses their own workforce to complete construction of an infrastructure project. For DR-Infrastructure Program projects, the use of force account labor requires advance review and approval by HCD. This may be documented by 2 https://webapps.dol.gov/elaws/elg/kickback.htm

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2018 CDBG-DR Infrastructure Program Policies and Procedures 16 approval of a project budget that includes force account labor as a line item.

Subrecipients that proceed without prior approval risk disallowance of all incurred costs.

The force account labor approval process is used for all DR-Infrastructure Program activities.

2.3.5 Equal Employment Opportunity Act
Executive Order 11246, Equal Employment Opportunity, as amended, prohibits federal contractors and federally assisted 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 identity or national origin. The Executive Order also requires government contractors to take affirmative action to ensure that equal opportunity is provided in all aspects of their employment.3

2.3.6 Minority- and/or Women-Owned Business Enterprises Minority owned businesses (Section 8(a)) must be at least 51 percent unconditionally and directly owned by one or more socially and economically disadvantaged individuals who are citizens of the United States (CFR Title 13 Part 124). Women-owned businesses must be at least 51 percent owned and controlled by women who are U.S. citizens (CFR Title 13 Part 127 Subpart B).

The Minimum Acceptable Outreach Standards Section 281 of the National Affordable Housing Act requires each participating jurisdiction (i.e., Subrecipient) to prescribe procedures acceptable to the HUD Secretary to establish and oversee a minority outreach program. The program shall include minority and woman-owned businesses in all contracting activities entered into by the Subrecipient. Therefore, minimum HUD standards require that each Subrecipient’s outreach effort to minority and women-owned businesses be:
• A good faith, comprehensive and continuing endeavor;
• Supported by a statement of public policy and commitment published in the print media of widest local circulation;
• Supported by an office and/or a key, ranking staff person with oversight responsibilities and access to the chief elected official; and • Designed to utilize all available and appropriate public and private sector local resources.

Under the minimum HUD standards cited above, the following guidelines are provided for use by Subrecipients implementing outreach programs to ensure the inclusion, to the maximum extent possible, of entities owned by minorities and women. Each Subrecipients should:
• Develop a systematic method for identifying and maintaining an inventory of certified minority and women's business enterprises (MBEs and WBEs), their capabilities, services, supplies and/or products;
3 41 CFR Part 60

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2018 CDBG-DR Infrastructure Program Policies and Procedures 17 • Utilize the local media, electronic and print, to market and promote contract and business opportunities for MBEs and WBEs;
• Develop informational and documentary materials (fact sheets, program guides, procurement forecasts, etc.) on contract/subcontract opportunities for MBEs and WBEs;
• Develop procurement procedures that facilitate opportunities for MBEs and WBEs to participate as vendors and supplies of goods and services; • Sponsor business opportunity-related meetings, conferences, seminars, etc., with minority and women business organizations; and
• Maintain centralized records with statistical data on the utilization and participation of MBEs and WBEs as contractors/subcontractors in all HUD-assisted program contracting activities.

Each Subrecipient, utilizing the standards and guidelines listed above, shall prescribe procedures and actions it undertakes in implementing a minority and women's business enterprise outreach program. The above items represent basic outreach-related activities and are not all-inclusive actions a Subrecipient may undertake.

2.3.7 Fair Labor Standards Act of 1983, As Amended
The Fair Labor Standards Act of 1938, as amended (FLSA), establishes the basic minimum wage levels for all work and requires the payment of overtime at the rate of at least one and one-half times the basic hourly rate of pay for hours worked in excess of 40 per week. These labor standards are applicable to the entire construction contract whether or not CDBG-DR funds finance only a portion of the project. Excluding the exceptions listed below, all workers employed by contractors or subcontractors in the performance of construction work financed in whole or in part with assistance received under HCD’s DR-Infrastructure Program must be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended.

In some cases, the State of California prevailing wage rate and the Davis-Bacon prevailing wage rates both apply. In such instances, the higher of the two wage rates prevails. Exceptions to the FLSA include:
• Construction contracts of $2,000;
• Real property acquisition;
• Architectural and engineering fees;
• Other services (such a legal, accounting, construction management); • Other non-construction items (such a furniture, business licenses, real estate taxes);
• Rehabilitation of residential property designed for fewer than eight families; and • Debris removal demolition, and/or clearance activities, unless related to construction (demolition and clearance as independent functions are not considered construction).

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2018 CDBG-DR Infrastructure Program Policies and Procedures 18 2.3.8 Davis-Bacon Labor Standards
The Davis Bacon and Related Acts (DBRA) requires all contractors and subcontractors performing work on federal contracts or federally assisted contracts in excess of $2,000 for construction, alteration, or repair (including painting and decorating) to pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits for corresponding classes of laborers and mechanics employed on similar projects in the area. The prevailing wage rates and fringe benefits are determined by the Secretary of Labor for inclusion in covered contracts. Prime contractors and subcontractors on DavisBacon Act contracts in excess of $150,000, or related Act contracts in excess of $100,000, are also required, pursuant to the Contract Work Hours and Safety Standards Act, to pay laborers and mechanics one and one-half times their basic rates of pay for all hours over 40 worked on a covered contract in a workweek.

Subrecipients are responsible for ensuring that applicable projects and services are in compliance with DBRA through the submission of certified payroll records and interviews of prime and subcontractor laborers. Supporting compliance documentation shall be uploaded to Grants Network. HCD ensures compliance through the review of DBRA documentation uploaded to Grants Network by the Subrecipients.

On September 15, 2015, HUD’s Office of Community Planning and Development (CPD) issued Notice CPD-15-074 on September 15, 2015 that provides guidance on preapplication costs and clarifies how cross-cutting requirements apply to CDBG-DR activities. Notice CPD-15-07 includes clarification on the applicability of DBRA and states:
“the Davis-Bacon wage rates will not apply when:
• The grantee was not a party to the construction contract; and • The construction work is fully complete before the owner applies for CDBG-DR assistance.

If construction work is ongoing when an application for reimbursement or financing of construction costs is submitted, then Davis-Bacon prevailing wage rates are applicable.

Under regulations of the Department of Labor (DOL) at 29 CFR 1.6(g), where Federal assistance is not approved prior to contract award (or the beginning of construction if there is no contractor award), Davis-Bacon wage rates apply retroactively to the beginning of construction and must be incorporated retroactively in the contract specifications (pg. 7).”
Subrecipients shall follow HUD’s guidance for all FEMA PA Match and HMGP Match projects. For construction projects that were completed prior to December 1, 2020, the date HCD and HUD executed its grant agreement, Davis-Bacon prevailing wage rates are not applicable. For all projects with construction that is on-going or completed after December 1, 2020, Davis-Bacon prevailing wage rates apply retroactively to the beginning of construction and the Subrecipient must collect documentation to ensure that the prevailing wage rate has been provided to laborers since the beginning of the project. 4 https://www.hud.gov/sites/documents/15-07CPDN.PDF

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2018 CDBG-DR Infrastructure Program Policies and Procedures 19 2.3.9 Limited English Proficiency
HCD follows the Safe Harbor rule, contained in HUD’s final guidance5, to determine when to provide translation of vital documents. The Safe Harbor rule for written translation of vital documents is based on the number and percentages of the market area-eligible population or current beneficiaries and applicants that are Limited English Proficiency (LEP). HCD ensures that all citizens have equal access to information about the programs, including persons with disabilities (vision and hearing impairments) and Limited English Proficiency persons.

2.3.10 Section 3 of the HUD Act of 1968
Section 3 of the Housing and Urban Development Act of 1968 (Section 3), as amended, requires that economic opportunities generated by CDBG-DR funds be targeted toward Section 3 residents. Section 3 eligible residents are low- and very low-income persons, particularly those who live or reside in public or government assisted housing.

In accordance with Section 3, recipients using CDBG-DR funding for housing or other public construction are required, to the greatest extent feasible, to provide training and employment opportunities to lower income residents and contract opportunities to businesses in the project area.

Projects assisted with DR-Infrastructure funds in excess of $200,000 trigger Section 3 requirements. When triggered, best efforts must be made to extend Section 3 opportunities to verified Section 3 residents and business concerns to meet these minimum numeric goals: (1) Twenty-five percent (25%) of the total hours worked on a Section 3 project must be worked by Section 3 workers; and (2) Five percent (5%) of the total hours worked on a Section 3 project must be worked by Targeted Section 3 workers.

The Subrecipient and Subrecipient’s Contractors shall comply with Section 3 and implementing regulation at 24 CFR Part 75. The responsibilities outlined in 24 CFR Part

75.19 include:

Implementing procedures designed to notify Section 3 workers about training and employment opportunities generated by Section 3 covered assistance and Section 3 business concerns about contracting opportunities generated by Section 3 covered assistance.

Notifying potential Contractors for Section 3 covered projects of the requirement of Part 75, Subpart C and incorporating the Section 3 Clause set forth below in all solicitations and contracts.

Section 3 Clause
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 5 https://portal.hud.gov/hudportal/documents/huddoc?id=finallep2007.pdf

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2018 CDBG-DR Infrastructure Program Policies and Procedures 20 and other economic opportunities generated by 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.

The parties to this contract agree to comply with HUD's regulations 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.

The contractor agrees to send to each labor organization 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.

The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR Part 75 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 the regulations in 24 CFR Part 75.

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.

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.

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.

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,

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2018 CDBG-DR Infrastructure Program Policies and Procedures 21 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.

The Project Completion Report shall also include a Section 3 Summary Report of the total number of labor hours worked by all contractors and subcontractors, the total number of labor hours worked by Section 3 workers, and the total number of labor hours worked by Targeted Section 3 workers, as required pursuant to 24 CFR 75.25(a). In the event that the number of Section 3 worker labor hours divided by the total labor hours worked by all workers on a Section 3 project does not meet or exceed HUD’s Twenty-five percent (25%) standard, and/or that the number of Section 3 targeted worker labor hours divided by the total labor hours worked by all workers on a Section 3 project does not meet or exceed HUD’s Five percent (5%) standard, Subrecipient shall provide additional reporting on the qualitative nature of its activities and those its contractors and subcontractors pursued, as defined at 24 CFR 75.25(b). The standards for hours worked by Section 3 Workers and Targeted Section 3 Workers are subject to change by HUD as published in the Federal Register.

DR-Infrastructure Program projects are required to meet Section 3 requirements as shown above. Section 3 goals and objectives are set depending on the date of completion of each project and project bid dates. HCD staff ensures that Section 3 objectives are addressed through direct technical assistance with subrecipients and file reviews of projects.

HCD requires the following actions of all Subrecipients to ensure compliance with Section 3:
• Prepare and utilize a Section 3 Plan;
• Designate a Section 3 Coordinator;
• Take affirmative steps to follow the Section 3 Plan and document those efforts; and • Include the Section 3 Clause and the Contractor Certification of Efforts to Fully Comply with Employment and Training Provision of Section 3 in any bid packets for contracts on DR projects. Notify all bidders that adherence to the Recipient’s Section 3 Plan is required for contracts and sub-contracts in excess of $200,000.

2.3.11 Fair Housing
The Fair Housing Act requirements are adhered to when applicable, the Fair Housing Act requires all Grantees, Subrecipients, and/or Developers funded in whole or part with HUD financial assistance for housing related activities to certify that no person was excluded from participation in, denied the benefit of, or subjected to discrimination in any housing program or activity because of their age, race, color, creed, religion, familial status, national origin, sexual orientation, military status, sex, disability or marital status. HCD enforces the Fair Housing Act by ensuring that all grantees, subrecipients, and/or developers meet the applicable Fair Housing and Affirmative Marketing requirements, provide a marketing plan, and report on compliance in accordance with the Fair Housing

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Act and the associated forms on HCD’s website, where applicable6. The Affirmative Marketing Plan must be in compliance with applicable Fair Housing Laws and demonstrate how the Applicant affirmatively furthers fair housing throughout applicable HCD disaster recovery programs.

2.3.12 Residential Anti-Displacement
When applicable, HCD and its Subrecipients shall make every effort to minimize displacement of families from their homes and/or neighborhood, according to the State of California’s Residential Anti-displacement and Relocation Assistance Plan.7

2.3.13 Uniform Relocation Act and Real Property Acquisition When applicable, HCD and its subrecipients must comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended by the Uniform Relocation Act Amendments of 1987 (URA or Uniform Act). The URA contains requirements for carrying out real property acquisition or the displacement of a person, regardless of income status, for a project or program in which HUD financial assistance is provided. The implementing regulations, 49 CFR Part 24, include steps which must be taken with tenant occupants, including those who are not impacted by the HUD assisted activity. URA was amended by Public Law 105-117.

Real Property
If DR-Infrastructure Program funds are used to acquire real property, HCD ensures that the property is acquired voluntarily and continues to be used for its intended (and approved) purpose, proper records are maintained to keep track of it, steps are taken to protect and maintain it, and that if the property is sold, HCD is reimbursed for the CDBGDR share of the property’s value.

This approach to the ownership, use, management, and disposition of property is complicated by two facts. First, the rules about property management and disposition differ slightly depending on whether a grantee is a public-sector grantee (the rules are generally more explicit for governmental grantees). Second, the rules depend on the nature of the property. Real property (e.g., land, buildings) is treated differently than personal property (e.g., equipment, supplies, intangible property like copyrights) (Property Management and Disposition Regulations 24 CFR 570.503; all subrecipients (subs) 24 CFR 85.32; 85.34, govt. subs 24 CFR 84.32; 84.34, nonprofit subs) (as amended by 2 CFR 200 as needed).

2.3.14 Financial Management
HCD ensures that its grant management as well as those administering DR-Infrastructure Program funds demonstrate conformity with financial management requirements shown in 2 CFR 200 and applicable Federal Registers. These requirements include, but are not 6 https://www.hcd.ca.gov/planning-and-community-development/affirmatively-furthering-fair-housing 7 https://www.hcd.ca.gov/policy-research/plans-reports/docs/Appendix_D-Relocation_and_Anti-Displacement_Plan.docx 2018 CDBG-DR Infrastructure Program Policies and Procedures 22 TOP-PID SUBRECIPIENT AGREEMENT

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2018 CDBG-DR Infrastructure Program Policies and Procedures 23 limited to, areas covering Financial Management; Advances; Internal Controls; Accuracy of Report Information; Program Income; Salaries and Wages; Indirect Costs; Lump Sum Drawdowns; and Single Audit provisions pursuant to 2 CFR 200 Subpart F. HCD’s financial management system is consistent with and in compliance with 24 CFR Parts 84, 85, and 570 (as applicable), which ensures that DR-Infrastructure Program funds are managed with high levels of accountability and transparency.

HCD’s Monitoring and Compliance team ensures that Subrecipient’s financial management practices adhere to the following:
• Internal controls are in place and adequate;
• Documentation is available to support accounting record entries; • Financial reports and statements are complete, current and reviewed periodically; and
• Audits are conducted in a timely manner and in accordance with applicable standards.

2.3.15 Insurance and Property Management
For all projects in the DR-Infrastructure Program, all Subrecipients, with the exception of those in the PA Match Program, must procure and maintain insurance for the duration of the subrecipient agreement to protect all contract assets from loss due to any cause, such as theft, fraud and physical damage. If CDBG-DR funds are used to acquire real property or personal property, the Subrecipient is responsible for ensuring that:

The property continues to be used for its intended (and approved) purpose; The Subrecipient keeps track of, and takes care of, the property; and If the Subrecipient sells or disposes of the property within 5 years after the expiration of the subrecipient agreement or a longer period as HCD deems appropriate, the Subrecipient reimburses HCD for the share of the property’s value according to the Agreement.

2.3.16 Recordkeeping, Retention, and File Management
Record retention is a requirement of the DR-Infrastructure Program. Records are maintained to document compliance with Program requirements and Federal, State, and local regulations and to facilitate a review or monitored by HUD.

HCD adheres to State of California record retention requirements, which require all records to be maintained for a period of five years after the CDBG-DR grant closeout with HUD. This requirement is in line with 24 CFR part 570.490, or as required by applicable laws and regulations under 24 CFR parts 570.487, 570.488 and 570.502(a)(7).

Exemptions to the five-year period are provided in the applicable laws and regulations under 24 CFR parts 570.487, 570.488 and 570.502(a)(7). Exceptions include, but are not limited to:

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2018 CDBG-DR Infrastructure Program Policies and Procedures 24 • If any litigation, claim, or audit, is started before the expiration of the five-year period, records must be retained until all litigation, claims, or audit findings involving the records have been resolved and final action taken; • When HCD is notified by HUD, or another federal agency, that the record retention period requirement has been extended;
• Records for real property and equipment acquired with CDBG-DR funds must be retained for three years after disposition; or
• When records are transferred or maintained by HUD, the retention requirements no longer apply to HCD.

HCD Subrecipients shall retain all records, such as financial records, supporting documents, statistical records, and all other records pertinent to the MSA for a period of not less than five years after the fiscal year of their grant in accordance with CDBG-DR record retention requirements. HCD notifies Subrecipients when the HUD grant has been closed. Notwithstanding the above, if there is litigation, claims, audits, negotiations, or other actions that involve any of the records cited and that have started before the retention period, then all such records must be retained until completion of the actions and solution of all issues, or the retention period, whichever occurs later.

Every Subrecipient is required to establish and maintain at least three major categories of records: Administrative, Financial Management, and Project Files.

Administrative Records
These are files and records that apply to the overall administrative of the Subrecipient’s CDBG-DR activities. They include the following:
• Personnel files;
• Property management files;
• General program files: files relating to the Subrecipient’s or contractor’s project information, grant agreement(s), program policies and procedures, and correspondence with grantees, and reports; and
• Legal files: articles of incorporation, bylaws of the organization, tax status, board or council minutes, contractors, and other agreements.

Financial Records
These include records such as the chart of accounts, cash receipts and disbursement journal, payroll journal, general ledger, and any applicable accounting policies and procedures. Source documentation (purchase order/change, paid invoices, payroll records, timesheets and attendance records, canceled checks, etc.), procurement files, bank account records, audit files, and/or another mechanism approved by HCD in writing for the specific grant, etc.

Project Files
These files document the activities undertaken with respect to specific individual beneficiaries, property owners, and/or properties.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 25 2.3.17 Procurement Policy
Subrecipients must follow Federal, State, and local procurement rules when purchasing services, supplies, materials, and/or equipment. Subrecipients are required to adopt procurement procedures in 2 CFR 200.318 - 326. All procurement transactions funded in whole or in part with CDBG-DR funds, regardless of dollar amount, must be conducted to provide “maximum open and free competition.” 2 CFR 200.318(i) requires that Subrecipients maintain records sufficient to detail the significant history of each procurement.

Subrecipient procurement transactions shall also follow best practices of cost reasonableness and must meet the critical tests below. The costs must be:
• Necessary: The expenditures fill a necessary gap to address an unmet need that cannot be filled by another funding source, as demonstrated by completed DOB analysis for each project/activity.
• Reasonable: This term is generally defined as what a prudent business would pay in a competitive marketplace. A cost can be allowable and allocable, and still not be what a prudent businessperson would pay.
• Allowable: The costs must be allowable under the eligibility requirements of CDGBDR funds. • Allocable: The costs are logically related to or required in the performance of the project contract. Many costs may be allowable but not related to the work required under the contract.

The Subrecipient is responsible for procuring contractors and ensuring compliance with local, state and federal regulations. For active previously procured contract that the subrecipient would like to apply towards a DR-Infrastructure project, the Subrecipient must provide the procurement file to HCD for review. HCD program staff are responsible for identifying any concerns regarding conforming to the minimum procurement requirements found at 2 CFR 200.318 – 326. Compliance with all applicable local, state, and federal regulations will be certified by subrecipients when financial reports are submitted to HCD and reviewed by HCD during subrecipient monitoring visits.

2.3.18 Audit Trail
All records defined by the organization as important are captured in HCD’s three record management systems: HUD’s Disaster Recovery Grant Reporting System (DRGR), the State’s Financial Information System for California (FI$Cal), and the system of record, Grants Network. Together, these three systems are used to account for DR-Infrastructure Program funds, with Grants Network serving as the primary system of records. Grants Network contains both Subrecipient and project level files including, but not limited to, NOI documentation, Application and project documentation, Subrecipient expenditure tracking, applicable procurement documentation, available funding, Subrecipient agreements and other agreements, financial management, labor compliance (Section 3 and Davis-Bacon), and citizen participation data. Grants Network ensures data security and oversight creating a clear audit trail of the DR-Infrastructure Program.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 26 All Subrecipient and project data is secured in HCD’s System of Record, Grants Network, in accordance with the State of California’s CDBG-DR Grant Administration Manual’s retention policy.

Recordkeeping, including scanning and uploading to Grants Network, and filing of pertinent DR-Infrastructure Program documentation retention policies are to provide both a physical and an electronic record of activities so that documentation is available for audit purposes.

To protect personally identifiable information (PII), data security measures are in place.

HCD, its Subrecipients, and contractors take the following steps to protect PII:
• Limit collection of PII;
• Maintain hard copies of PII records in locked cabinets; and • Password protect access to electronic files containing PII.

Filing cabinet keys and electronic passwords are shared with program staff only. HCD releases records containing PII upon request, after verification, by federal and state auditor and other federal or state agencies for duplication of benefits (DOB) analyses.

2.3.19 Conflicts of Interest and Confidentiality
Conflicts of interest between covered persons (e.g., Eligible Applicants, recipients, program administrator, contractors, or program staff) and other parties are strictly prohibited by Federal law. A “covered person” is an employee, agent, consultant, officer, or elected official or appointed official of the State, or of a unit of general local government, or any designated public agencies, or recipients that are receiving CDBG-DR funds. Generally, no person who is a covered person, and who exercises or has exercised any functions or responsibilities with respect to CDBG-DR activities and 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 or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter.

The conflict of interest regulations contained in the contract between the recipient and HCD prohibit locally elected officials, State staff, recipient employees, and consultants who exercise functions with respect to CDBG-DR activities or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, from receiving any benefit from the activity either for themselves or for those with who they have family or business ties, during their tenure or for one year thereafter.

2.3.20 Environmental Review
An environmental review must be performed on the project prior to federal funds being committed or disbursed by HCD and Subrecipients. The environmental review shall document compliance with 24 CFR Part 58, NEPA, and all related laws, authorities, and executive orders. For DR-Infrastructure, each Subrecipient receiving DR-Infrastructure

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2018 CDBG-DR Infrastructure Program Policies and Procedures 27 funds becomes the Responsible Entity for completing environmental reviews of all projects and must submit complete Environmental Review Records and a Request for Release of Funds to HCD to grant the authority to use grant funds. Pursuant to 83 FRN 40314, HCD may accept another federal agency’s environmental review. Subrecipients are also responsible for ensuring compliance with CEQA, including the submission or designation of applicable waivers to the CEQA Clearinghouse with a copy to HCD. No work may start on a proposed project, or proposed site acquisition, if applicable, before both the federal and state environmental review processes are completed, even if that work/acquisition is being done using non-federal funds. The DR-Infrastructure Program does not reimburse projects that have been determined to have a Finding of Significant Impact (FOSI).

Subsequent to submission of an application by a Subrecipient for the use of DRInfrastructure funds, there can be no choice-limiting actions on the part of the Subrecipient until environmental clearance is received in the form of an Authority to Use Grant Funds (ATUGF) or environmental clearance letter issued by the Department. The concept of prohibiting choice-limiting actions is to prevent the Subrecipient from investing in a project before all necessary environmental clearances are obtained. Market studies, environmental studies, plan development, engineering or design costs, inspections and tests are not considered “choice-limiting” actions. Choice-limiting actions are defined as any activity that would have an adverse environmental impact or limit the choice of reasonable alternatives, such as acquisition by the Subrecipient, construction, demolition of buildings or infrastructure, or rehabilitation or reconstruction of buildings or infrastructure. Per 24 CFR Part 58.22, failure to comply with the prohibition against committing funds or taking physical action (using either HUD funds or non-HUD funds) before the completion of the environmental review process could result in loss of HUD assistance, cancellation of the project, reimbursement by Subrecipient to HCD for the amount expended, or suspension of the disbursement of funds for the affected activity.

Environmental Review Procedures
An environmental review that complies with the National Environmental Policy Act (NEPA) must be completed before CDBG-DR funds are expended. However, HUD grantees are permitted to adopt FEMA’s environmental review if that Federal agency has previously performed an environmental review for assistance under the Robert T. Stafford Disaster Relief and Emergency Assistant Act. In those cases, the work performed by FEMA and HUD must be exactly the same work.

For FEMA PA Match, HMGP Match, and other federally funded match projects, eligible projects are able to adopt FEMA’s completed environmental review. If a project’s scope changes beyond what was approved in the project worksheet, an additional HUD environmental review must be completed. When adopting FEMA’s environmental review, the Subrecipient must obtain a completed copy of FEMA’s environmental review record and keep the copy in its project file. If the environmental review documentation is not available, verification from FEMA or the California Governor’s Office of Emergency Services (Cal OES) is necessary.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 28 For Stand-Alone projects, each Subrecipient is required to perform a NEPA environmental review on the Project prior to any choice-limiting actions. The Subrecipient is allowed to use DR-Infrastructure Program Activity Delivery funds to complete environmental reviews.

Activity Delivery expenses for environmental compliance work for intended Project Applications may be incurred prior to the execution of the NTP provided that such expenses are eligible and are supported by documentation satisfactory to the Department. The environmental review shall document compliance with 24 CFR Part 58, NEPA, and all related laws, authorities, and executive orders. To process the environmental review for each Stand-Alone project, use the steps below as a guide:
1) Once a Subrecipient enters into an Agreement with HCD and is ready to submit an Application, the Subrecipient must submit all Environmental Review Records (ERRs) and request for release of funds (RROF), if applicable, to HCD for review. If the Subrecipient is using DR-Infrastructure Program activity delivery funds to complete the environmental review prior to issuance of the related NTP, the Subrecipient must notify HCD of their intentions in writing prior to expending any funds. If activity delivery funds will not be expended until after the NTP is issued, a written request is not necessary.
2) Upon receipt, review, and approval of a completed ERR, HCD provides Subrecipient with an Authority to Use Grant Funds (ATUGF), if applicable, or environmental clearance letter.
3) Upon receipt of the ATUGF or environmental clearance letter and Notice to Proceed, Subrecipient may incur Project costs and draw down funds.

For all projects, Subrecipients are responsible for ensuring that DR-Infrastructure Program projects are in compliance with the California Environmental Quality Act (CEQA) and obtain all necessary local and state permits.

Flood Insurance and Floodplain Elevation Requirements
The Subrecipient shall comply with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001). The Subrecipient shall assure that for activities located in an area identified by 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).

Subrecipients must comply with the national floodplain elevation standards for new construction, repair of substantially damaged structures, or substantial improvements to public facilities in flood hazard areas. All structures designed for public facilities use within a special flood hazard area (SFHA), or one percent annual chance, floodplain will be elevated with the lowest floor at least two feet above the base flood elevation level and comply with the requirements of 83 FR 5850 and 83 FR 5861.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 29 2.4 FEMA PA Match

2.4.1 FEMA PA Categories
The FEMA Public Assistance (PA) program is designed to provide assistance to the impacted jurisdictions for emergency work (under FEMA Sections 403 and 407) and permanent work (Sections 406 and 428) on infrastructure and community facilities.

Emergency work takes place immediately after an event and permanent work restores or rebuilds a damaged asset or facility.

FEMA PA projects fall under the following categories:

Emergency Protective Work
Category A – Debris Removal
Category B – Emergency Protective Measures
Permanent Work
Category C – Roads and Bridges
Category D – Water Control Facilities
Category E – Public Buildings and Equipment
Category F – Public Utilities
Category G – Parks, Recreational, and Other Facilities

2.4.2 Eligible Activities
HUD allows Grantees to use CDBG-DR funds to address the non-federal cost share, as noted in the authorizing Federal Register Notice, but requires that the funded project meet at least one additional HUD eligible activity and a National Objective. Infrastructure repair is an eligible activity according to 42 USC 5305(a)(2), which authorizes the acquisition, construction, reconstruction, or installation (including design features and improvements with respect to such construction, reconstruction, or installation that promote energy efficiency) of public works, facilities (except for buildings for the general conduct of government), and site or other improvements.

2.4.3 Eligible Projects
Proposed projects are assessed by HCD. Eligibility criteria include:
• The proposed project must be located in a city or county impacted by DR-4382 or DR-4407;
• The proposed project must be approved for FEMA PA funds under Categories C through G only;
• All sources of funding required to complete the project must be identified and secured or readily accessible; and
• The proposed project must relate to infrastructure and tie back to the 2018 disaster.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 30 2.4.4 Eligible Use of Funds
FEMA PA projects eligible for PA Match funding under the DR-Infrastructure Program fall under Title I of the Housing and Community Development Act of 1974 or those activities specified by waiver in 83 FR 5844 published February 9, 2018; 83 FR 40314 published August 14,2018; 84 FR 97 published January 9, 2019; and 84 FR 6813 published February 28, 2019.

CDBG-DR funds may fund required FEMA PA local non-federal share (match) funding for approved projects under the following FEMA PA permanent work categories:
• Category C (Road and bridges);
• Category D (Water control facilities);
• Category E (Public buildings and equipment);
• Category F (Public utilities); and
• Category G (Parks, recreational, and other facilities).

All projects must meet a National Objective as detailed in Section 2.2.2.

2.4.5 Ineligible Uses of Funds
Ineligible FEMA PA Match costs include required FEMA PA Match funding for approved projects under Categories A (Debris Removal) and Category B (Emergency Protective Measures). Any increase in scope or modification of a FEMA PA project is also ineligible for funding. Further ineligible costs include those costs that are covered by another party as detailed in Section 2.2.4. in order to preclude Duplication of Benefits.

2.4.6 Labor Compliance
FEMA PA Match projects completed prior to December 1, 2020, that were not Davis Bacon or Section 3 compliant are eligible for non-federal match funding under the DRInfrastructure Program. Eligibility of FEMA PA Match projects that were completed after December 1, 2020 or are in progress at the time of the application requires that the Eligible Applicant must show project compliance with federal regulations and federal labor regulations (i.e., Davis-Bacon Compliance and Section 3).

2.5 FEMA HMGP Match

2.5.1 Eligible Uses of Funds
Eligible FEMA HMGP costs are those activities eligible under Title I of the Housing and Community Development Act of 1974 or those activities specified by waiver in 83 FR 5844 published February 9, 2018; 83 FR 40314 published August 14,2018; 84 FR 97 published January 9, 2019; and 84 FR 6813 published February 28, 2019. As such, CDBG-DR funds may fund required FEMA HMGP local non-federal share (match) for approved projects that meet the CDBG-DR requirements, including a tie-back to the DR-4382 or DR-4407 disaster events. All projects must meet a National Objective as detailed in Section 2.2.2. To be eligible for FEMA HMGP Match, the project must be a project obligated by FEMA have a service location in an area impacted by DR-4382 or DR-4407, and tie to disasters DR-4382 or DR-4407.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 31 Examples of eligible HMGP Match project types include:
• Acquisition
• Defensible Space
• Flood Control (wildfire soil stabilization, debris catchment, etc.) • Generators (fixed in place, clear disaster tie-back, and usage is CDBG-eligible) • Planning (wildfire mitigation plans, hazard mitigation plan updates) FEMA HMGP infrastructure projects that are approved by Cal OES are eligible for funding under the DR-Infrastructure Program. Eligible projects must tie back to the DR-4382 or DR-4407 disasters. Eligible Applicants are responsible for providing documentation on the tie-back to the DR-4382 or DR-4407 disaster events. Projects that are complete or in progress at the time of application must show compliance with federal regulations and federal labor regulations (i.e., Davis Bacon and Section 3) to be eligible.

2.5.2 Ineligible Uses of Funds
FEMA HMGP projects that are not related to infrastructure and/or without a tie-back to the 2018 disaster events are ineligible for funding. FEMA HMGP costs covered by another funding source and are a Duplication of Benefits as detailed in Section 2.2.4. are ineligible for funding. Ineligible projects include:
• Seismic-related projects
• Portable generators

2.6 Other Non-Federal Share Match

2.6.1 Eligible Uses of Funds
HCD may fund the local portion of the non-federal share for other federally grant-funded infrastructure projects with a tie-back to the DR-4382 or DR-4407 disaster events.

From the unmet needs analysis conducted during the 2018 Action Plan Amendment 1 process, Eligible Applicants indicated that there was an unmet need for the local share on Federal Highway Administration (FHWA) and United States Department of Agriculture (USDA) grants for disaster-related projects. If Subrecipients submit applications for nonfederal share match for other federal programs that otherwise meet HCD’s eligibility requirement, HCD will evaluate the eligibility of match on a case-by-case basis. HCD may provide a non-federal share up to 25% of the total cost of the project.

If the non-federal share of U.S. Army Corps of Engineers projects is being funded, Eligible Applicants cannot exceed $250,000 for the non-federal share of the project.

2.6.2 Ineligible Uses of Funds
Projects that have a local share requirement that are not federally funded, are not related to infrastructure, and do not have a tie-back to the 2018 disaster events are ineligible for funding.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 32 2.7 Determining the Non-Federal Share Amount
The non-federal share match is that portion of the project funding that is not covered by the federal government. FEMA administers its grants according to Federal cost sharing requirements as outlined in Title 2 of the Code of Federal Regulations, Sections 200.29, 200.306, and 200.434 and consistent with Title 44 of the CFR, the Robert T. Stafford Disaster Relied and Emergency Assistance Act, as amended, and the National Flood Insurance Act, as amended. In general, FEMA funds may be used to pay up to 75 percent of eligible activity costs.

The non-federal share for FEMA PA Match and HMGP Match project totals 25% of the overall project cost. For FEMA PA projects, of the 25% non-federal share, the State of California’s National Disaster Assistance Act (NDAA)8 funds 75% of the remaining nonfederal share (18.75% of the total). The DR-Infrastructure Program provides the remaining 25% of a project’s non-federal local share (i.e., 6.25% of the total).

For HMGP Match projects, the DR-Infrastructure Program is available for up to 25% of the overall project cost. There is no State cost share for HMGP projects.

Federal
Agency
Federal
Programs
Federal
Cost Share
NonFederal,
State Cost
Share
NonFederal,
Local, Share
Disasters
FEMA Public
Assistance (PA)
75% 18.75% 6.25% DR-4382,
DR-4407
FEMA Hazard
Mitigation Grant
Program
(HMGP)
75% None 25% DR-4382,
DR-4407

2.8 Stand-Alone Infrastructure

2.8.1 Eligible Uses of Funds
Eligibility of Stand-Alone Infrastructure Projects requires that the projects are non-match, stand-alone infrastructure projects that have a tie-back to the DR-4382 or DR-4407 disaster events and address identified unmet disaster recovery needs. Further, StandAlone Infrastructure Projects must be those activities eligible under Title I of the Housing and Community Development Act of 1974 or those activities specified by waiver in 83 FR 5844 published February 9, 2018; 83 FR 40314 published August 14,2018; 84 FR 97 published January 9, 2019; and 84 FR 6813 published February 28, 2019. All projects must meet a National Objective as detailed in Section 2.2.2. Examples of Stand-Alone Infrastructure Project activities that potentially tie back to the 2018 disasters include, but are not limited to:
8 https://www.caloes.ca.gov/cal-oes-divisions/recovery/public-assistance/california-disaster-assistance-act

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2018 CDBG-DR Infrastructure Program Policies and Procedures 33 • Soil stabilization in impacted areas following the fires; • Generators that are affixed to the structure (i.e., not mobile) with a specific disaster tie-back;
• Undergrounding power lines that were damaged by the disaster event; • Acquisition of land for fire mitigation and/or to make the community more resilient; and
• Hillside or streambank stabilization due to mud/rockslides related to the disaster event.

2.8.2 Ineligible Uses of Funds
Projects not related to infrastructure, increased code compliance, direct support of housing recovery, or DR-4382 or DR-4407 disaster events are ineligible for funding.

Further, any costs for non-match, stand-alone projects that are funded by another source as detailed in Section 2.2.4. are ineligible for funding.

Private infrastructure activities are ineligible for program funding. Private infrastructure activities include but are not limited to funding the construction, repair, or replacement of private roads, bridges, and private utilities.
3 Implementation Policies

3.1 Project Selection

3.1.1 NOI Process
The purpose of the NOI is to facilitate the completion of an unmet need assessment that HCD uses to allocate funds based on the NOI review (Section 3.1.3) and NOI allocation methodology (Section 3.1.5) described below. Eligible Applicants submit eligible DRInfrastructure Program Projects identifying an unmet need through a Notice of Intent (NOI) via Grants Network. Only eligible Projects submitted during the NOI process will be considered for an award during the application phase (see Section 3.1.7). Even if the Project is otherwise eligible, if it is not submitted as part of the NOI/unmet need assessment and determined to be eligible by HCD during the application phase, it will not be considered for an award.

For the 2018 DR-Infrastructure Program, there are two rounds of NOIs that align with HCD’s unmet needs Priority Levels. The Priority Levels are as follows:
• Priority 1: Projects addressing an unmet need that meet the LMI national objective • Priority 2: Projects addressing an unmet need that do not meet the LMI national objective
Round 1 of the NOI accepts Priority 1 projects only and Round 2 accepts both Priority 1 and Priority 2 projects. The LMI national objective does not need to be verified at the NOI stage, but the expectation is that the Eligible Applicant can provide service area or area benefit data to support the project Priority Level.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 34 Following the release of each NOI round, Eligible Applicants must complete and submit the NOI fields in the Grants Network Program Portal detailing eligible DR-Infrastructure Program projects within four (4) weeks for Round 1 and eight (8) weeks for Round 2. If HCD has questions or feedback regarding potential project unmet needs, Eligible Applicants are allowed to provide clarifications. HCD determines program allocations following a final review and evaluation of all submitted NOIs.

If LMI and most impacted and distressed (MID) funding targets, see Section 3.1.10, are not able to be met by the potential projects submitted through the NOI process, HCD reserves the right to pause the NOI process and reevaluate the DR-Infrastructure Program as a whole. HCD could reopen the NOI release period for as long as it deems necessary to meet LMI and MID funding targets.

3.1.2 NOI Requirements
Eligible Applicants are required to submit the information below for projects during the NOI phase, unless otherwise noted as optional. Failure to submit the required information may disqualify the project from being included in the allocation calculation. The submission of optional information does not impact the eligibility of projects, nor the Eligible Applicant’s allocation. The required information is as follows:
• Declaration of project type (Stand-Alone, FEMA PA Match, FEMA HMGP Match, or Other Non-Federal Share Match)
• Project Details:
• Identify which of the 2018 declared disasters the submitted project is related to. • Identity of the Eligible Applicant.
• Indication if the project is on behalf of another government entity or special district other than the Eligible Applicant
o If yes, name of other government entity or special district • Project Title
• Project Description / Scope of Work
• A description or scope of work for infrastructure projects is required. • Project Location Description, including address, as applicable • Project City
• Project Zip Code
• Does the Project service area benefit LMI population or area? o If yes, describe how the project service area benefits and LMI population or area
o What is the percentage of LMI persons that benefit from this project? o Upload documentation that supports the LMI service area (optional) • Does the Project service area benefit the MID area?
o Include MID service area Map (optional)
• Provide a map of the service area showing MID and LMI benefit (optional) • FEMA PA Project Number – PA Match Only
• FEMA PW Number – PA Match Only
• FEMA PA Category – PA Match Only
o Category C: Roads and Bridges

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2018 CDBG-DR Infrastructure Program Policies and Procedures 35 o Category D: Water Control Facilities
o Category E: Public Buildings and Equipment
o Category F: Public Utilities
o Category G: Parks, Recreational, and Other Facilities • OES Number – HMGP Match Only
• FEMA HMGP Status
• Other Federal Match Project Number
• Affirmation and documentation of project compliance from the start of construction with Davis-Bacon Act and Section 3 if in-progress or completed after December 1, 2020
o If project is complete, date of the completion
• Provide the current status of the project
• Total Project Cost ($ amount), The Total Project Cost ($ amount) is the total amount of the cost of the project. This includes any matching funds, the unmet need, Activity Delivery Costs and/or administrative costs, and the amount being requested from the 2018 CDBG-DR Infrastructure program) • Federal Funding Identified/Committed ($ amount)
• Federal share of the total project cost
• State Matching Funds ($ amount)
• Local Match ($ amount) Anticipated CDBG-DR funding request ($ amount) • (This is the total amount of unmet need funding being requested from HCD for the DR-Infrastructure Program allocation. This includes hard project costs and Activity Delivery Costs).
• Is there a gap between total project unmet need and CDBG-DR funding request? o If yes, please explain how the gap is anticipated to be funded and provide estimated dollar amounts.
• Have you applied for other sources of funds for this project? o If yes, please explain the source, how much and the status of application or award
• Provide cost estimate documentation from a qualified professional (Optional) (If provided, the documentation should clearly demonstrate the reasoning of the cost estimate and support the description of the cost estimate and/or unmet need) • Was the project denied by FEMA for PA or HMGP funds?
o If yes, provide a descriptive reason why the project was denied by FEMA.

Additional documentation may be requested.
• What eligible CDBG activity does this fall under?
• Has a NEPA Environmental Review been started?
• Has a NEPA Environmental Review been completed?
o If yes, upload completed NEPA Environmental Review (Optional) • Has a CEQA Environmental Review been started?
• Has a CEQA Environmental Review been completed?
o If yes, upload completed CEQA Environmental Review (Optional) • Explain how the proposed project ties back to DR-4382 or DR-4407 and how it will address an unmet need.
• Explain how the proposed project supports housing recovery

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2018 CDBG-DR Infrastructure Program Policies and Procedures 36 Optional Uploads (Note: these are required fields for the application) • Tieback Documentation: The documentation should demonstrate a clear tie back to the 2018 disasters. See Section 3.2.1 on types of documentation • Documentation demonstrating the project supports housing recovery • Project Timeline

3.1.3 NOI Review
To ensure that the unmet need of each Eligible Applicant is calculated correctly, HCD reviews projects submitted in NOIs based on the following criteria:
• Project Eligibility
• National Objective
• Total Unmet Need
• Overall Housing Recovery
• Priority Level 1 (LMI) or 2 (Urgent Need)
Project Eligibility
HCD reviews projects to determine evidence of eligible disaster tie-back to DR-4382 or DR-4407. Disaster tie-back for FEMA PA Match are assumed to have a tie-back due to the eligibility requirements of the FEMA PA program. All FEMA HMGP Match, StandAlone, and other Non-Federal Share Match projects shall include a description in the NOI describing how the project ties to DR-4382 or DR-4407. If the NOI submission does not provide sufficient explanation or evidence of disaster tie-back, HCD may inform the Eligible Applicant of the need to clarify tie-back. If HCD asks for clarifications, the Eligible Applicant is given two weeks to provide clarification of the disaster tie-back. If the tie-back explanation is insufficient to establish tie-back, the project is not considered an unmet need and not included in the allocation determination.

FEMA HMGP Match, Stand-Alone, and Non-Federal Share Match infrastructure projects must be an eligible CDBG activity and eligible use of the funds (see Sections 2.4.4, 2.5.1,

2.6.1, and 2.7.1). If HCD staff identifies a project that does not meet these requirements, HCD allows one (1) week for the Eligible Applicant to provide sufficient documentation showing that it is an CDBG activity and eligible use of the funds. If the Eligible Applicant is unable to provide sufficient evidence for the project to qualify as an eligible CDBG activity and is an eligible use of the funds, the project is not considered an unmet need and is not included in the allocation determination.

National Objective
HCD staff evaluates all projects for meeting a national objective (see Section 3.2.2).

Projects must either benefiting Low- and Moderate-Income (LMI) persons or meet a need with a particular urgency (urgent need). The information provided by the Eligible Applicant will be used to determine the project’s national objective and its placement as a Priority Level, 1 or 2.

Total Unmet Need
For all projects, HCD reviews the current unmet need presented by the Eligible Applicants related to total project cost and other sources of funding. No formal budget analysis is

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2018 CDBG-DR Infrastructure Program Policies and Procedures 37 completed at the NOI stage, but further clarification may be asked of the Eligible Applicant if unmet need calculations are incorrect or if total project costs appear to be unreasonable.

Overall Housing Recovery
As stated previously in Section 3.2.1, for all projects, HCD reviews how each project supports the overall housing recovery from DR-4382 or DR-4407. Projects that support overall housing recovery are infrastructure projects that enable the recovery of residential areas by meeting transportation needs, restoring essential utilities, and addressing other public infrastructure and facility needs. Examples of infrastructure projects that support overall housing recovery include, but are not limited to: public roads, school facilities, stormwater drainage improvements, potable water, sanitary sewer, electric and gas utilities, fire protection measures, wastewater treatment facilities, parks, and other public facilities that are important publicly owned assets.

Priority Level
There are two rounds of NOIs that align with HCD’s unmet needs Priority Levels. The Priority Levels are as follows:
• Priority 1: Projects addressing an unmet need that meet the LMI national objective • Priority 2: Projects addressing an unmet need that do not meet the LMI national objective
Round 1 of the NOI accepts Priority 1 projects only and Round 2 accepts both Priority 1 and Priority 2 projects. The LMI national objective does not need to be verified at the NOI stage, but the expectation is that the Eligible Applicant can provide service area or area benefit data to support the project’s Priority Level.

3.1.4 NOI Approval
The DR-Infrastructure Program Review Board evaluates Infrastructure Program allocations and provides concurrence of the allocations calculated by HCD staff. The Review Board consists of three to five HCD staff members and is assisted by additional staff or subject matter experts, as needed. The DR-Infrastructure Program Manager chairs the Review Board. If the DR-Infrastructure Program Manager position is vacant, the Acting DR-Infrastructure Program Manager shall serve as the Review Board chair.

Review Board decisions are unanimous. If consensus cannot be reached in favor or against allocations, an Issue(s) Memo is developed by the dissenting Board Members and submitted to the CDBG-DR Section Chief for consideration and further discussion until consensus is achieved. Once consensus is achieved, the allocation amount for Eligible Applicants based on their submitted projects is submitted to the CDBG-DR Section Chief, Branch Chief, and Deputy Director for final approval. Upon approval, the decision shall be documented in a letter to the Subrecipient and HCD’s Internal Loan Committee (ILC) will be notified.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 38 3.1.5 Allocations from NOI
Allocations are provided to Eligible Applicants based on the unmet infrastructure need established during the two NOI rounds. Of the total project funds available for DRInfrastructure, 55% ($174,585,668) of the program budget is reserved for Priority 1, LMI project unmet needs, and 45% ($142,842,820) is reserved for Priority 2, non-LMI project unmet needs.

To ensure that the DR-Infrastructure meets the HUD requirement that 80% of the grantwide funds spent in MID areas, the total dollars allocated to non-MID areas shall not exceed $63,485,698, or 20% of the overall Infrastructure Program budget, whichever is less.

Allocations are calculated based on the total dollar amount for unmet infrastructure needs, with 55% of the total funds reserved for eligible Priority 1 unmet infrastructure needs and 45% reserved for eligible Priority 2 unmet infrastructure needs. If the requested amount from Eligible Applicants is less than the total funding for each Priority ($174,585,668 for Priority 1 and $142,842,820 for Priority 2) and all project unmet needs are determined to be eligible and assigned the correct Priority Levels, Eligible Applicants are allocated 100% of their requested unmet needs. If at any point the total project unmet needs exceed the funds available for each Priority, the funds are proportionally reduced by each Priority round so the percent requested equals the percent allocated.

HCD reserves the right to provide partial funding to Eligible Applicants, increase select Eligible Applicant allocations to ensure project feasibility, open another NOI round, and/or reprogram Infrastructure Program funds. Allocations cannot exceed the unmet need amount submitted under the NOI.

3.1.6 Authorizing Resolution & MSA
The Authorizing Resolution is necessary for completion of an executed MSA.

Subrecipients must submit an executed authorizing resolution on the template provided by HCD. Jurisdictions that already have a resolution template are requested to embed the HCD template language inside of the jurisdiction’s approved template. Any deviation from the HCD authorizing resolution template language may delay implementation of the Eligible Applicant’s project(s). The authorizing resolution documents each applicant’s authority to submit applications and enter into an agreement between the Eligible Applicant and HCD for the DR-Infrastructure Program. No agreement between HCD and a jurisdiction will be valid until the respective jurisdiction’s authorizing resolution is submitted and accepted by HCD. If allowed by local policies, HCD can accept a resolution from the governing board authorizing specific Eligible Applicant staff to enter into an agreement and submit a project application on the Eligible Applicant’s behalf.

The MSA is the contractual arrangement between the Department and the Subrecipient which sets forth the terms and conditions by which CDBG-DR funds must be utilized with regards to Approved Projects. Following an allocation to the Eligible Applicant by HCD and an executed authorizing resolution, HCD routes the Subrecipient’s MSA for approval, and when ready, will be delivered to the Subrecipient for execution via Grants Network.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 39 3.1.7 Project Application Process
HCD opens the Grants Network Portal to Subrecipients to complete project applications for a period of 90 days following the execution of an MSA. If the Subrecipient cannot meet the application deadline, an extension request must be made by the Subrecipient prior to the deadline and are made on a case-by-case basis. The HCD DR-Infrastructure Manager or Section Chief can approve the extension request. Eligible Applicants must use the Grants Network Portal to submit project applications.

Eligible Applicants are limited to submitting project applications that align with the projects submitted in Round 1 or Round 2 of the NOI process and projects must meet the HCD Priority Level LMI/Urgent Need breakdown of the allocation. HCD reviews application submissions and provides a follow-up response to subrecipients including, but not limited to, request for Due Diligence items, if not already requested, feedback, questions, and comments within 60 calendar days of receiving a completed application. The HCD review process ensures compliance with regulatory requirements and confirms the project is consistent with broader recovery goals.

3.1.8 Application Requirements
The purpose of the application is to establish the final eligibility and budget of submitted projects, demonstrate that the project adheres to program policies and grant conditions, submit final construction design plans, identify and document all funding sources, and provide additional documentation to show compliance with state and federal regulations.

The required information is as follows:
• Authorizing Resolution
o HCD provides a template that must be used
o Due Diligence (See Section 3.2)
• Overall Project Description/Scope of Work
o The overall project description and scope of work provides a complete summary of the project with supporting documentation that ties the project to the 2018 disasters and demonstrates support of housing recovery. The project description includes the ownership of the project and who benefits from the project. The scope of work includes a full description of construction activities.
• National Objective/MID Documentation
o Ensure that the final proposed project service area hasn’t changed from the NOI. If the project benefits MID areas, the service area must show the MID area benefit.
o For LMI projects, the Subrecipient must complete a beneficiary form detailing demographic calculations and supporting maps/figures. o Urgent Need documentation – resolution from the city council or county board stating that no other funding is available for this project. • Complete Cost Estimate/Budget
o Complete list of all project funds and sources of funds (CDBG, local, private, other state funds, federal funds, other).
o Final budget (eligible activity costs and project delivery costs)

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2018 CDBG-DR Infrastructure Program Policies and Procedures 40 o Design and construction cost estimates with description of materials needed, quantities, unit prices, and an itemized amount (if possible). o Provide justification of any additional testing, investigations, or other engineering fees (soil boring tests, environmental site assessments, etc.). • Duplication of Benefits
o Complete list and supporting documentation of potentially duplicative funds for the same purpose (insurance, utility settlements, state and local grants, etc.).
o Final duplication of benefits is calculated by the Subrecipient. • Project Maps
Detailed maps of the existing infrastructure and proposed infrastructure improvements (can be combined, if needed).

Service area of the project.

Census track/block groups related to the service area of the project. • Project Timeline
o List of project milestones (design, preconstruction, phases of construction, and completion).

3.1.9 Application Review
The DR-Infrastructure Review Board reviews all aspects of the project application, including scope, budget, eligibility, environmental review, legal/policy issues, procurement, and compliance. Concerns noted from the NOI review are also reviewed prior to voting on the project. Projects that receive approval must be unanimous by the Review Board. Applications that need clarification or further information may be amended and resubmitted to the Review Board in accordance with the Review Board’s requests and deadline for response. If all options have been explored and the project cannot meet the program requirements, a notice of denial is issued. The notice of denial includes guidance on actions the Eligible Applicant can take for application reconsideration.

Once consensus is achieved among the Review Board members for projects that meet all eligibility requirements, the projects are submitted to HCD’s Disaster Recovery Branch Chief for final approval. Once an application has been approved, applicants are notified of the decision via email and an acceptance letter is uploaded to Grants Network.

Following the application approval, HCD will work with the Subrecipient to issue an NTP.

The NTP will outline the details regarding the use of funds (see Section 4.1.10).

3.1.10 Application Award Methodology
HCD evaluates projects based on the eligibility requirements as outlined in Section 3 and the required project information detailed in Section 4.1.2.

For eligible project applications, HCD reviews special conditions in the Agreement, if applicable and requests any outstanding items to satisfy the special conditions. HCD completes a review of the Eligible Applicant’s allocation and determines whether each Eligible Applicant’s application amount across its projects fall within its allocation amount.

HCD notifies jurisdictions if they have exceeded the allocation amount and request

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2018 CDBG-DR Infrastructure Program Policies and Procedures 41 application resubmission. Eligible Applicants with submitted applications at or below the allocation amount proceed to award recommendation.

If an evaluation of submitted applications by HCD determines that the proposed projects do not result in HCD meeting its grant-wide 70% LMI requirement and program-specific 80% MID requirement funding levels, HCD reserves the right to reevaluate the program and weigh options for ensuring that DR-Infrastructure Program meets HUD requirements.

3.1.11 Notice to Proceed
Once the Project’s award recommendation is approved, the Project may not proceed to construction, with the exception of FEMA match projects that have already started construction prior to the NOI release, until HCD provides a Notice to Proceed (NTP) for the project. The NTP specifies the award amount, project milestones, LMI and MID targets, and other related details. To receive an NTP, the Subrecipient must have a complete and approved Environmental Review, all special conditions in the Agreement must be cleared via a letter of clearance issued by HCD. The NTP enables the Subrecipient to proceed to the project’s construction and expect to be reimbursed for eligible costs incurred after the NTP exaction date.

3.1.12 Appeals Process
Subrecipients have the right to appeal the DR-Infrastructure Program Review Board’s determination regarding the issuance of an NTP.

The Subrecipient must submit their appeal in written form, within 60 days from the date the award decision was issued via Grants Network.

An authorized person of HCD Leadership shall review the appeal and then discuss the merits of the appeal with the CDBG-DR Section Chief and the DR-Infrastructure Program Review Board before rendering an independent decision concerning the appeal. The decision of the authorized person of HCD Leadership shall be final.

3.2 Subrecipient Due Diligence
For HCD’s Subrecipient capacity assessment, as required in Federal Register Notice 83 FR 5867, Eligible Applicants are required to provide documents and information as part of the Due Diligence process. As Subrecipients, Eligible Applicants are required to comply with the requirements, requests, and results of HCD’s capacity assessment and maintain the capacity to carry out disaster recovery activities in a timely manner. The Due Diligence process may result in special conditions in the Agreement to ensure the capacity to carry out disaster recovery activities in a timely manner. As such, the completion of the Due Diligence is a necessary prerequisite to entering into an NTP.

3.3 Technical Assistance to Subrecipients
HCD provides various types of technical assistance (TA) to Subrecipients and vendors throughout the program from the release of the NOI to agreement closeout. The objectives of technical assistance are to initially aid the Subrecipient and vendors to

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2018 CDBG-DR Infrastructure Program Policies and Procedures 42 clearly understand the program requirements and appropriately submit the project application. Also, HCD, through the provision of TA, supports Subrecipients to maintain their day-to-day compliance with federal and state regulations and program requirements.

In addition, HCD performs a risk assessment to determine a Subrecipient’s capacity and to identify deficiencies in complying with applicable grant and program requirements.

According to the risk assessment results, HCD provides technical assistance and guidance to Subrecipients to improve their performance, develop or increase capacity, and augment management and technical skills. Some examples of technical assistance include:
• Verbal or written advice
• Formal training and workshops
• Documentation and guidance

3.4 Activity Delivery Costs

3.4.1 Allowable Costs After MSA and Before NTP
Subrecipient may begin to perform project related activities and to incur Activity Delivery Costs (ADCs) once its MSA is executed, and prior to a Notice to Proceed, so long as such activities would not be considered a choice-limiting action (see 2.3.20 for more details on choice-limiting actions). ADCs incurred do not have to be tied to a specific project.

ADCs are allowable costs incurred for implementing and carrying out eligible CDBG activities. ADCs cover the costs of staff directly carrying out the activity in addition to engineering, design, architecture, and environmental services that are necessary for successful completion of the activity. ADCs must be allocable to a CDBG-assisted activity or an activity that is CDBG-eligible, meet a national objective, and meet all other CDBG program requirements. There is no maximum cap on ADCs, but Subrecipients must show that ADCs are reasonable for the CDBG-eligible activity being carried out, as authorized under 24 CFR 570.201-570.204. If the proposed ADCs exceed 20% of the total project cost, additional justification and documentation are required to justify the need for ADCs that exceed 20% of the total project cost.

3.4.2 Authorization to Incur Costs Before an Executed MSA There are two circumstances when ADCs may be incurred prior to the execution of an MSA. First, with Program Manager or Section Chief written approval, ADC expenses for environmental compliance work for intended Project Applications may be incurred prior to execution of an MSA between the Subrecipient and HCD provided that such expenses are eligible and are supported by documentation satisfactory to the Department. Second, with Program Manager or Section Chief written approval, other costs may also be incurred prior to the execution of an MSA, such as the cost of procuring consultants and architectural, engineering, and other professional services required to prepare plans, drawings, specification, or work write-ups not more than 24 months prior to the Approved Project being set up in DRGR, provided the Subrecipient procured contracts are conducted in a manner consistent with 2 CFR 200,317 – 200.326, “Procurement

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2018 CDBG-DR Infrastructure Program Policies and Procedures 43 Standards.” In no event shall the Subrecipient’s activities authorized under these two exceptions be considered choice-limiting actions.

3.4.3 Subrecipient ADCs with Incomplete Projects
If the initial project(s) are unable to be completed, a review of the causes of the project failure is performed. The Subrecipient needs to provide documentation demonstrating the cause of the project’s failure for HCD to review. Depending on the specifics of the situation, HCD may require more evidence of the causes of failure during the review process. If, after the review, the evidence demonstrates that the project was put forth and preceded in good faith on the part of the Subrecipient, then HCD would consider a new eligible project from the subrecipient , as long as the initial ADCs can be shown to have contributed to the new project. Prior to any funding of the new project, a new capacity assessment, project evaluation, and amended agreement with stricter grant conditions is required.

If it is shown that the project failed due to egregious behavior or actions, including but not limited to conflicts of interest, fraud, waste, abuse, and similar types of issues or actions, on the part of the Subrecipient, then any funding payments made toward the project are required to be repaid and the Subrecipient is allowed to put forth a new project submission. If the review shows that the Subrecipient acted in a reasonable manner, then the Subrecipient is allowed to put forth a project proposal. If the project put forth by the Subrecipient does not meet the eligibility requirements, Priority Level requirements for a new project, or does not sufficiently demonstrate that the initial project’s ADCs have contributed to the new project, HCD shall open the outstanding funding for other Eligible Applicants in order to meet the Eligibility and Priority Level requirements of the DRInfrastructure Program. 4 Program Operations

4.1 Subrecipient Agreements
A. HCD shall enter into one or more funding Agreement with Subrecipients, which will specify the terms and requirements of Subrecipients’ receipt of funding. HCD utilizes multiple agreement templates, including, but not limited to, standard agreements and master standard agreements. The type of Subrecipient agreement used depends on the type and number of projects, among other factors. HCD determines the type(s) of agreement used on a case-by-case basis in the reasonable exercise of HCD’s discretion.

B. Upon HCD approval of individual projects and clearance of any special conditions (if applicable), HCD issues a Notice to Proceed (NTP), if applicable, to the Subrecipient. The NTP is a binding document, approved as to form a component of the Agreement between the Subrecipient and HCD by committing funds to a specific project and gives official notice to the subrecipient that they can begin work on the project. The NTP includes project details, including but not limited to:
• A description of the approved project and the permitted uses of program funds;

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2018 CDBG-DR Infrastructure Program Policies and Procedures 44 • The approved project development budget and sources and uses of funds and financing;
• The approved schedule of the project, including design, if any, commencement and completion of construction work;
• Performance milestones; and
• Performance penalties.

4.2 Agreements with Contractors or Other Parties
Per 2 CFR 200.213, Subrecipient shall not enter into any agreement, written or oral, with any contractor, vendor, or other party without the prior determination that the contractor, vendor, or other party is eligible to receive federal funds and is not listed on the Federal Consolidated List of Debarred, Suspended, and Ineligible Contractors.

The term “other party” is defined as public or private non-profit agencies or organizations and certain (limited) private for-profit entities who receive Grant Funds from a Subrecipient to undertake eligible projects.

Requirements of an agreement between the Subrecipient and any Contractor, or other party shall contain, but not be limited to the following:
• Compliance with all State and federal requirements including those that pertain to labor standards, nondiscrimination, Americans with Disabilities Act, Equal Employment Opportunity, and Drug-Free Workplace Act
• Maintenance of at least the minimum State-required Workers’ Compensation Insurance
• Maintenance of unemployment insurance, disability insurance and liability insurance which is reasonable to compensate any person, firm or corporation who may be injured or damaged during the performance of project activities • Contractors shall:
o Comply with the applicable provisions of the California Labor Code; o Perform the project activities in accordance with federal, state and local housing and building codes, as applicable; and
o Provide security to assure completion of the project(s) by furnishing the borrower and construction lenders with proof of sufficient insurance and performance and payment bonds, or other security approved in advance in writing by the Department, as determined by the particulars of each individual project are required.

4.3 Document Retrieval Process
All documentation at each step of the process of the project’s life, from NOI to grant closeout, must be submitted through the Grants Network Program Portal. This ensures that all the required documents are available for review and retrieval in one location. To submit or retrieve a document, the Subrecipient needs to enter their project Workspace through the Grants Network Program Portal and upload the document into the proper location.

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2018 CDBG-DR Infrastructure Program Policies and Procedures 45 4.4 Disbursement of Funds
Payments are made directly to Subrecipients as reimbursements based on the documented completion of agreed upon project milestones, as outlined in the agreement.

Reimbursement-based means that Activity Delivery and project costs must be incurred by the Subrecipient and documented as required by the terms of the agreement for payment of invoices. HCD retains a total of 5% of the overall project cost until the project is fully closed out and all federal and state requirements are met. Please see the state’s CDBGDR Grant Administration Manual, Section V for additional financial management procedures and requirements.

4.5 Reporting Requirements
Subrecipients are required to submit reports at times indicated in the agreement, in accordance with HCD and HUD reporting requirements, and via Grants Network. At a minimum, during the term of the agreement, on a monthly basis the Subrecipient shall submit to HCD a progress report which addresses the following topics:
• A description of the current status of the project activity; • A description of activities to be undertaken in the next reporting period; • A description of problems or delays encountered in project implementation and course of action taken to address them;
• Any questions that have arisen during implementation or a request for technical assistance;
• A description of actions taken to achieve project expenditure deadlines; and • A summary of project fiscal status, including:
o Award amount;
o Funds drawn; and
o Remaining balance.

At any time during the term of the agreement, HCD may perform or cause to be performed an independent financial audit of any and all phases of the Subrecipient’s project(s). At HCD’s request, the Subrecipient shall provide, at its own expense, a financial audit prepared by a certified public accountant. As stated in the State of California’s CDBG-DR Grant Administration Manual, Section VJ1 on internal audits, all non-federal entities that expend $750,000 or more in federal awards in a fiscal year are required to have a single audit for that year in accordance with the Single Audit Act of 1984, Single Audit Act Amendments of 1996, and 2 CFR §200 Subpart F-Audit Requirements.

4.6 Monitoring and Compliance
HUD describes monitoring as an integral management control standard and requires any entity receiving HUD funding to monitor and evaluate program performance and compliance, see CDBG Regulation 24 CFR 570.501(b). HCD staff monitors all CDBG-DR programs and activities. HCD is required to ensure that its Subrecipients comply with:
• The requirements of the DR program;
• FRN requirements applicable to the DR program and any applicable waivers;

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2018 CDBG-DR Infrastructure Program Policies and Procedures 46 • Other federal regulatory guidance, such as Uniform Administrative Requirements, cost principles, and audit requirements outlined in 2 CFR 200; • Specific conditions as stated in 2 CFR 200.205 and 200.207 respectively to mitigate the risk of the grant;
• The Agreement with HCD, including amendments if applicable; and • The annual monitoring assessment and strategy.

Monitoring provides information about program participants, assesses quality of performance over time and is critical for making informed judgements about program effectiveness and management efficiency. It also identifies instances of fraud, waste, and abuse.

HCD’s Monitoring of Subrecipients
HCD monitors its subrecipients and contractors/vendors, when applicable, based upon an assessment of risk posed by the jurisdiction or contractor/vendor and according to specific monitoring criteria per 2 CFR 200.331. HCD conducts a Risk Assessment on all subrecipients and contractors/vendors on an annual basis. In accordance with 2 CFR 200.221, 24 CFR 570.492 and 42.U.S.C Section 5304(e)(2), the risk assessment seeks to gauge subrecipients capacity to implement program or project, its compliance with the Agreement, performance objective and assess operational risk. The goal of this process is to determine the highest risk areas across all CDBG-DR activities and inform HCD with the programs, subrecipients, and/or contractors/vendors who require the greatest administrative oversight. The results of the risk assessment advise HCD of those high risk subrecipients, contractors/vendors for technical assistance, capacity training, scheduling frequency, and type of monitoring activities.

The Monitoring Plan provides HCD's responsibilities and procedures for monitoring its subrecipients, as well as the Annual Monitoring Strategy. Two types of monitoring will be employed by HCD: desk monitoring and onsite monitoring. Both desk monitoring and onsite monitoring follow the same process as follows:
• HCD sends notification letter the subrecipient;
• Document collection and pre-monitoring work begins for the next 30 days after issuance of the notification letter;
• Entrance Conference via teleconference for desk monitoring and in person for onsite monitoring;
• Review of documents, interview of subrecipients, and requests for additional documents;
• Exit conference via teleconference for desk monitoring and in person for on-site monitoring. Review of findings and concerns including next step discussion; and • Monitoring is concluded with a Monitoring Report which is issued to the subrecipient within 30 days of the Exit conference.

Desk Monitoring
Desk monitoring is conducted at the HCD office regardless of the location of the subrecipient's office. It commences 30 days after the subrecipient is notified via the

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2018 CDBG-DR Infrastructure Program Policies and Procedures 47 notification letter. During the 30-day notification period, the subrecipient will provide HCD with any documentation requested in the notification letter. A desk monitoring can either be area specific (e.g., Procurement and Contract, Environmental, Section 3, Financial Management) or a comprehensive review of the project. Typically, desk monitoring is only conducted for low risk to medium risk subrecipients and on some cases may trigger an onsite monitoring based on the findings of the HCD monitor. The outcome of the desk monitoring is communicated to the subrecipient via an Exit conference and in writing via a Monitoring Report.

Onsite Monitoring
During the onsite visit, HCD representative reviews files for compliance with applicable federal and program requirements. This review is similar to the desk monitoring process.

To prepare for onsite visits, the HCD monitor uses information contained within Grants Network, the Agreement, and Program Application. These may include items such as employee timecards, financial statements, project file documents, draw requests, and policies and procedures provided by the Subrecipient. Typically, on-site monitoring is reserved for medium-high to high risk subrecipients. This group of subrecipients present the greatest risk to HCD's compliance with HUD's grant requirements. On-site monitoring is intended to be a more comprehensive assessment of the subrecipients' management of the DR program in compliance with applicable Federal, state and local regulations and requirements. This level of monitoring is performed at the subrecipient’s location and is more formal than a desk monitoring.

Generally, HCD does not monitor a Subrecipient’s construction contractor. Rather, HCD monitors the Subrecipient’s monitoring of the contractor since monitoring the contractors is the responsibility of the Subrecipient. However, if HCD determines that a Subrecipient has not performed adequate monitoring of its Subrecipients or contractors, HCD may directly monitor the Subrecipient or contractor to confirm that applicable regulatory compliance is being provided. When necessary, the HCD representative arranges onsite project inspections with the Subrecipient and its contractors to confirm eligible CDBG-DR activities are being conducted, eligible costs are being charged and that the required national objective is being met.

Subrecipient Monitoring Responsibilities
HCD requires the Subrecipients to develop their own monitoring plan for their projects and contractors that complete construction on DR-Infrastructure funded projects. Therefore, Subrecipients are responsible for carrying out their projects to meet these compliance requirements. HCD monitoring plan is available for guidance to the subrecipient to develop their own monitoring plan.

For construction projects, it is the responsibility of the Subrecipient to monitor projects to ensure compliance with terms of the Agreement and applicable regulations. Subrecipient monitoring should include:
• Ensuring project scopes of work are consistent with the scope of work described in the Project Applications;

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2018 CDBG-DR Infrastructure Program Policies and Procedures 48 • Physical inspection should include the inspection of all construction projects to ensure the project;
• Monitoring construction contractors for equal opportunity, federal and state labor standards and Section 3 requirements;
• Following procurement processes in accordance with 2 CFR §200 or local standards if higher;
• Project milestones are being met;
• Environmental reviews are completed and documented properly; • Complying with the terms and conditions of the Agreement with HCD, especially anti-fraud and abuse;
• Monitoring contractors/vendors for federal compliance standards; • Financial Management: internal controls, accounting , program income and record keeping are in compliance with 2 CFR 200 and CDBG-DR costs are eligible, allowable, reasonable, and allocable; and
• Documenting national objective compliance for all activities.

Please see the State of California’s CDBG-DR Grant Administration Manual, Section XVI for additional monitoring and compliance procedures and requirements.

4.7 Record Keeping
HCD’s Agreement with the Subrecipient is the contractual document that details the financial and recordkeeping requirements and standards for Subrecipients allocated funds to carry out specific eligible DR-Infrastructure activities. Such reports and recordkeeping requirements, defining the specific reports and the reporting dates, along with the particular record and the timeline for maintaining them are to assist HCD in meeting HUD’s recordkeeping and reporting requirements per Section 104(e); (a)(2)(D) and (a)(3)(b), §570.506 (records to be maintained), and §570.508 (public access to records).

Further record keeping requirements as detailed in 85 FR 4681 and per HCD’s agreement with HUD include, but are not limited to:
• Executed agreement(s)
• Description, geographic location and budget of each activity • Eligibility and national objective determinations for each activity • Evidence of having met a national objective
• Evidence of having met the MID criteria
• Evidence of having met the LMI criteria
• Subrecipient agreement
• Any bids or contracts
• Characteristics and location of the beneficiaries
• Compliance with special program requirements
• Personnel files
• HUD monitoring correspondence
• Citizen participation compliance documentation
• Fair Housing and Equal Opportunity records
• Environmental review records

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2018 CDBG-DR Infrastructure Program Policies and Procedures 49 • Documentation of compliance with crosscutting requirements (e.g., Davis-Bacon, Uniform Relocation Act, and Lead-Based Paint, etc.)
• Budget and expenditure information
• Chart of accounts
• Accounting procedures
• Accounting journals and ledgers
• Source documentation (purchase orders, invoices, canceled checks) • Procurement files (including bids, contracts, etc.)
• Real property inventory
• Draw down requests
• Payroll records and reports
• Financial reports
• Audit files
• Relevant financial correspondence
• The status of the project and/or activity
Further, Subrecipients are required to maintain financial records and submit the financial reports sufficient to ensure compliance with all recordkeeping and reporting requirements.

Per the Standards for Financial Management Systems, accounting records must be supported by source documentation such as canceled checks, invoices and demands, payrolls, time and attendance records, contract and sub-grant award documents, etc.

4.8 Grant Closeout
The closeout of a grant is a process through which HUD determines that all applicable administrative and program requirements of the grant were completed. In general, a grant is ready for closeout when the following conditions are met:
• All individual activities were completed, met a national objective, and closed out in DRGR;
• All contracts have completed closeout;
• All grant funds were expended in full or all remaining funds are planned to be returned to HUD;
• All reporting requirements were completed and submitted (except for the final report that is submitted during the closeout process, if applicable); • Any special conditions of the grant were met; and
• All audit and monitoring issues affecting the grant were resolved.

Closeout of an Individual Activity
Individual elements of the CDBG-DR grant may be closed out as a course of grant closeout. Closeout of individual activities are coordinated between HCD and the Subrecipients. Upon completion of the activity, DRGR must be updated with the project status.

As individual activities of the grant are preparing to closeout, HCD reviews and updates the following in DRGR:
• The total amount of funds drawn down for the activity

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2018 CDBG-DR Infrastructure Program Policies and Procedures 50 • A final check for DOB
• The activity type
• The national objective
• The grant activity accomplishments
Individual activity completion should also be reflected in the QPR.

Closeout of an Agreement
CDBG-DR Subrecipients are required to submit the following to HCD for each contract to complete closeout:
• The final request for funds;
• Evidence of a public hearing reporting the grant accomplishments and expenditures of each project to the residents of the jurisdiction; and • If applicable, the final projects of the grant funding (planning studies, environmental review records, etc.).

HCD reviews the documentation and processes the final funds requests if all provided documentation and the circumstances of the project warrant contract closeout. HCD disencumbers any remaining funds, if applicable, and enters all needed information in DRGR to show the activities and projects are “completed.” Once all documentation has been processed and DRGR has been updated, HCD sends a Closeout Letter to the Subrecipient, outlining all closeout requirements. Subrecipients are required to retain CDBG-DR records for a period of not less than five years after the fiscal year of their grant in accordance with CDBG-DR record retention requirements. HCD notifies Subrecipients when the HUD grant has been closed.

Once these items have been completed, HCD completes the Subrecipient Closeout Certification Form (HUD Form 40175) along with the Grant Closeout Checklist (HUD Form 40183) and submits these forms to HUD.

Within 90 days of the execution date of the Closeout Certification, HCD submits to HUD a copy of the final performance and evaluation report described in 24 CFR part 91 as well as Federal Financial Report SF-425 or a financial report that meets the criteria in 24 CFR part 570.489(d). These requirements must:
• Be sufficiently specific to ensure that funds received under this subpart are used in compliance with all applicable statutory and regulatory provisions and the terms and conditions of the award;
• Ensure that funds received under this subpart are only spent for reasonable and necessary costs of operating programs under this subpart; and • Ensure that funds received under this subpart are not used for general expenses required to carry out other responsibilities of state and local governments.

HCD may satisfy this requirement by:
• Using fiscal and administrative requirements applicable to the use of its own funds; • Adopting new fiscal and administrative requirements; and/or

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2018 CDBG-DR Infrastructure Program Policies and Procedures 51 • Applying the provisions in 2 CFR part 200.

If opting to satisfy this requirement for fiscal controls and administrative procedures by applying the provisions of 2 CFR part 200, HCD must comply with all requirements therein. Additionally, HCD must ensure that recipients of the state's CDBG-DR funds comply with 2 CFR part 200.

Concurrent with the financial report is a final QPR as well as an update of all transactional data in DRGR. If an acceptable report is not submitted, an audit of the grant activities may be conducted by HUD.

Once a review has been completed by HUD, the HUD field office prepares a closeout agreement. The grant is considered closed on the date that the appropriate HUD official executes the closeout agreement. Any unused grant funds are recaptured by HUD as a course of the closeout process.

Note that grants cannot be closed out if there are open monitoring reports associated with the contract; all monitoring findings, concerns and requirements must be received and approved by HCD, and HCD must also receive a Clearance Letter stating the monitoring has been complete.

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EXHIBIT “D” – SCOPE OF WORK
Water treatment Plant Solar project $ 500,000.00
PID Main Office and Corporation Yard Solar Panel Project $ 1,118,100.00 PID storage Tank Upgrades and Relining Project $ 1,000,000.00 PID Storage Tank Cathodic Protection System Evaluation
Project $ 300,000.00
Paradise Lake Level Monitor and Ball Valve Replacement
Project $ 300,000.00
PID Water Treatment Plant Gabion Wall Project $ 300,000.00 Total $ 3,518,100.00
702
Project Name:

Water Treatment Plant Solar Panel Project
Project Scope:

The Water Treatment Plant Solar Panel Project will provide supplemental power to the current usage.

Project Description:

The proposed project will provide and install solar panels to supplement the current power usage of the Water Treatment Plant and increase resiliency to frequent outage conditions. In an effort to upgrade building energy efficiency, reduce the significant utility cost burden and conserve energy using alternative methods of power supply. Also this will provide shaded parking for employees and fleet vehicles.

Funding:

Total Cost: $500,000(est.)
Pre-Construction Cost: $50,000
Construction Cost: $450,000
Existing Funding Resource: None
Unmet Need Pre-Construction: $50,000
Unmet Need Construction: $450,000
Long Term Recovery Plan
Tier and Project:
1 – PID Water System

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT D
703
Project Name:

Paradise Irrigation District Main Office and Corporation Yard Solar Panel Project Project Scope:

The Main Office and Corporation Yard Solar Panel Project will provide supplemental power to the current usage.

Project Description:

The proposed project will provide and install solar panels to supplement the current power usage of the Paradise Irrigation District Main Office and Corporation Yard and increase resiliency to frequent outage conditions. In an effort to upgrade building energy efficiency, reduce the significant utility cost burden, and conserve energy using alternative methods of power supply. Also, this will provide shaded parking for employees, fleet vehicles and customers.

Funding:

Total Cost: $1,000,000(est.)
Pre-Construction Cost: $100,000
Construction Cost: $900,000
Existing Funding Resource: None
Unmet Need Pre-Construction: $100,000
Unmet Need Construction: $900,000
Long Term Recovery Plan
Tier and Project:
1 – PID Water System

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT D
704
Project Name:

Paradise Irrigation District Storage Tank Upgrades and Relining Project Project Scope:

The Storage Tank Upgrades and Relining Project will reline the storage tank interior and paint the exterior.

Project Description:

The proposed project will provide a full inspection of Storage Tanks C, D and E to repair and recoat the interior lining and repaint the exterior surfaces. There is possible smoke and ember damage to the exterior coatings, to be determined at the time of the inspection. These tanks have the original coatings installed during installation and will ensure clean and safe drinking water storage.

Funding:

Total Cost: $1,000,000(est.)
Pre-Construction Cost: $50,000
Construction Cost: $950,000
Existing Funding Resource: None
Unmet Need Pre-Construction: $50,000
Unmet Need Construction: $950,000
Long Term Recovery Plan
Tier and Project:
1 – PID Water System

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT D
705
Project Name:

Paradise Irrigation District Storage Tank Cathodic Protection System Evaluation Project Project Scope:

The Storage Tank Cathodic Protection System Evaluation Project will evaluate the current cathodic protection system for status and vulnerabilities.

Project Description:

The proposed project will provide full inspection of Storage Tanks C, D and E Cathodic Protection System. Inspect and test sacrificial anode CP system and verifying they meet the criteria. The continuity test must show the protected structure is isolated from the other protected and non-protected structures.

Funding:

Total Cost: $300,000(est.)
Pre-Construction Cost: $15,000
Construction Cost: $285,000
Existing Funding Resource: None
Unmet Need Pre-Construction: $15,000
Unmet Need Construction: $285,000
Long Term Recovery Plan
Tier and Project:
1 – PID Water System

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT D
706
Project Name:

Paradise Lake Level Monitor and Ball Valve Replacement Project Project Scope:

The Paradise Lake Level Monitor and Ball Valve Replacement Project will enable Paradise Irrigation District to remotely monitor lake levels and replace a leaking ball valve.

Project Description:

The proposed project will replace the damaged leaking ball valve that controls outflow into the creek and installation of a new lake level monitor in Paradise Lake. This will allow Paradise Irrigation District to monitor and report water supply conditions to the level of accuracy needed during increasingly common drought conditions and in conformance with changing state regulations.

Funding:

Total Cost: $300,000(est.)
Pre-Construction Cost: $25,000
Construction Cost: $275,000
Existing Funding Resource: None
Unmet Need Pre-Construction: $25,000
Unmet Need Construction: $275,000
Long Term Recovery Plan
Tier and Project:
1 – PID Water System

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT D
707
Project Name:

Paradise Irrigation District Water Treatment Plant Gabion Wall Project Project Scope:

The Water Treatment Plant Solar Gabion Wall Project will provide reinforcement to the current side wall of the Magalia Dam spillway.

Project Description:

The proposed project is in response to the Division of Safety of Dams required Spillway Risk Assessment performed by Paradise Irrigation District. The determination of this risk assessment identified the need to reinforce the spillway wall. A gabion basket wall structure was identified by the District's consultant as the most cost effective solution.

Funding:

Total Cost: $200,000(est.)
Pre-Construction Cost: $20,000
Construction Cost: $180,000
Existing Funding Resource: None
Unmet Need Pre-Construction: $20,000
Unmet Need Construction: $180,000
Long Term Recovery Plan
Tier and Project:
1 – PID Water System

TOP-PID SUBRECIPIENT AGREEMENT

EXHIBIT D
708
EXHIBIT “E”
The following are links to information about the Infrastructure Program. The S u b r e c i p i e n t is responsible for referencing and adhering to the most recent version of each document:

HCD CDBG-DR (CDBG-DR) 2018 Disasters Website
https://www.hcd.ca.gov/grants-and-funding/programs-archived/communitydevelopment-block-grant-program-disaster-recovery State of California 2018 CDBG-DR Action Plan for Disaster Recovery https://www.hcd.ca.gov/community-development/disaster-recovery- programs/cdbgdr/cdbg-dr-2018/docs/hcd-cdbg-dr-2018_ap-final-ada-english.pdf CDBG-DR Grant Administration Manual for 2017 and 2018 Disasters https://www.hcd.ca.gov/sites/default/files/docs/grants-and-funding/dr/cdbg-dr-grantadministration-v9-march-2022-update.pdf CDBG-Mitigation Addendum to the CDBG-DR Grant Administration Manual for 2017 and 2018 Disasters
https://www.hcd.ca.gov/community-development/disaster-recovery-programs/cdbgdr/cdbg-mit-2017/docs/MIT-AddendumV2-to-DR%20GAM_ADA.pdf CDBG-DR Monitoring Plan
https://www.hcd.ca.gov/community-development/disaster-recovery-programs/cdbgdr/cdbg-dr-2017/docs/DR_MAC_Monitoring_Plan_Final.pdf 2018 CDBG DR-Infrastructure and MIT-RIP Policies and Procedures Manual V2.0 https://www.hcd.ca.gov/community-development/disaster-recovery-programs/cdbgdr/cdbg-dr-2018/docs/18DRINF18MITRIPPoliciesandProceduresv2.pdf 2018 DR-INFRA NOI Preparation July 2021
https://www.hcd.ca.gov/community-development/disaster-recovery-programs/cdbgdr/cdbg-dr-2018/docs/18DR-INFRA-NOI-Preparation.pdf 2018 DR-INFRA Round 2 NOI Preparation January 2022
https://www.hcd.ca.gov/community-development/disaster-recovery-programs/cdbgdr/cdbg-dr-2018/docs/18DR-Infra-101-Round-2.pdf 2018 CDBG-DR Infrastructure Program Notice of Intent Allocations Summary https://www.hcd.ca.gov/sites/default/files/docs/grants-and-funding/18-DRInfrastructure-Allocations.pdf 709
Intergovernmental SUBRECIPIENT Agreement SC-OR
EXHIBIT “F” – COMPLIANCE REQUIREMENTS

ALL CONTRACTS AND SUBCONTRACTS

1. NONDISCRIMINATION CLAUSE:
a. During the performance of this Agreement, SUBRECIPIENT and its subcontractors shall not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, disability (including HIV and AIDS), medical condition (cancer), age, marital status, denial of family and medical care leave and denial of pregnancy disability leave.

SUBRECIPIENT and its subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. SUBRECIPIENT and its subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this Agreement by reference and made a part hereof as if set forth in full.

SUBRECIPIENT and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
b. SUBRECIPIENT shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the agreement.

2. EQUAL OPPORTUNITY:
a. The Civil Rights, Housing and Community Development, and Age Discrimination Acts Assurances: During the performance of this Agreement, SUBRECIPIENT assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, national origin, sex, age, handicap, religion, familial status, or religious preference, under any grant activity funded by this Agreement, as required by Title VI of the Civil Rights Act of 1964, Title I of the Housing and Community Development Act of 1974, as amended, the Age Discrimination Act of 1975, the Fair Housing Amendment Act of 1988, and all implementing regulations.
b. The Training, Employment and Contracting Opportunities for Business and Lower Income Persons Assurance of Compliance:
i. The work to be performed under this Agreement is on a project assisted under a program providing direct federal financial assistance from the Department of Housing and Urban Development and 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 requires that to the greatest extent 710
Intergovernmental SUBRECIPIENT Agreement SC-OR
feasible, opportunities for training and employment be given lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the area of the project. The order of priority provided by Section 3 is defined in 24 CFR 135.34(a)(2). ii. The parties to this Agreement will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this contract. The parties to this contract certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements.
iii. SUBRECIPIENT will send to each labor organization or representative of workers with which he has a collective bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization or worker's representative of his commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training.
iv. SUBRECIPIENT will include these Section 3 clauses in every contract and subcontract for work in connection with the project and will, at the direction of the State, take appropriate action pursuant to the contract upon a finding that SUBRECIPIENT or any contractor or subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR Part 135 and, will not let any contract unless SUBRECIPIENT or contractor or subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.
v. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of the Agreement shall be a condition of the federal financial assistance provided to the project, binding upon SUBRECIPIENT, its successors and assigns. Failure to fulfill these requirements shall subject SUBRECIPIENT, its contractors and subcontractors, its successors and assigns to those sanctions specified by the grant or contract through which federal assistance is provided, and to such sanctions as are specified by 24 CFR Part 135. c. Americans with Disabilities Act (ADA) of 1990: By signing this Agreement, SUBRECIPIENT assures GRANTEE that it complies with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C. 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issues pursuant to the ADA.
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Intergovernmental SUBRECIPIENT Agreement SC-OR

3. ANTI-LOBBYING CERTIFICATION:
a. The undersigned certifies, to the best of his or her knowledge or belief, 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 SUBRECIPIENT, 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 any SUBRECIPIENT, 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.
b. SUBRECIPIENT shall require that the language of this certification be included in all contracts or subcontracts entered into in connection with this grant activity and that all subrecipients shall certify and disclose accordingly. c. 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 Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and no more than $100,000 for such failure.

4. CONFLICT OF INTEREST OF MEMBERS, OFFICERS, OR EMPLOYEES OF SUBRECIPIENT, MEMBERS OF LOCAL GOVERNING BODY, OR OTHER PUBLIC OFFICIALS: No member, officer, or employee of SUBRECIPIENT, or its designees or agents, no member of the governing body of the locality in which the programs are situated, and no other public official of such locality or localities who exercise any functions or responsibilities with respect to the programs during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for grant activities to be performed in connection with the programs assisted under this Agreement. SUBRECIPIENT 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.
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Intergovernmental SUBRECIPIENT Agreement SC-OR

5. CONFLICT OF INTEREST OF CERTAIN FEDERAL OFFICIALS: No member of or delegate to the Congress of the United States, and no resident commissioner, shall be admitted to any share or part of this Agreement or to any benefit to arise from the same.

6. SUBRECIPIENT AND SUBCONTRACTS:
a. SUBRECIPIENT shall not enter into any agreement, written or oral, with any contractor without the prior determination by the State of the contractor’s eligibility. A contractor or subcontractor is not eligible to receive grant funds if the contractor is not licensed in a good standing in California, or is listed on the Federal Consolidated List of Debarred, Suspended, and Ineligible Contractors.
b. This Agreement between GRANTEE and SUBRECIPIENT shall require SUBRECIPIENT and its subcontractors, if any, to:
i. Comply with the applicable State and Federal requirements described in Exhibit E which pertain to, among other things, labor standards, nondiscrimination, Americans with Disabilities Act, Equal Employment Opportunity, and Drug-Free Workplace.
ii. Maintain at least the minimum State-required Worker’s Compensation Insurance for those employees who will perform the grant activity or any part of it.
iii. Maintain, if so required by law, unemployment insurance, disability insurance and liability insurance in an amount to be determined by the State which is reasonable to compensate any person, firm, or corporation who may be injured or damaged by SUBRECIPIENT or any subcontractor in performing the grant activity or any part of it.
iv. Retain all books, records, accounts, documentation, and all other materials relevant to this Agreement for a period of five (5) years from the date of termination of this Agreement, or five (5) years from the conclusion or resolution of any and all audits or litigation relevant to this Agreement or the STANDARD AGREEMENT and any amendments, whichever is later. v. Permit the State, Federal government, the Bureau of State Audits, the Department of Housing and Community Development 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.
713
Intergovernmental SUBRECIPIENT Agreement SC-OR

7. COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS: Where required, SUBRECIPIENT shall comply with, and require contractors and subcontractors to comply with, each of the following:
a. Federal, State and local regulations that pertain to construction, health and safety, labor, fair employment practices, equal opportunity, or any other matters applicable to this Agreement.
b. Sections 103 and 107 of the contract Work Hours and Safety Standards Act (40 U.S.C. 327-220) as supplemented by DOL Regulations (29 C.F.R., Part 5); c. Executive Order 11246 and all implementing regulations of the DOL; d. Rehabilitation Act of 1973, (24C.F.R., Part 8);
e. Drug-Free Workplace Act of 1990, (Calif. Govt. Code Sec. 8350 et seq.). f. Mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 89 Stat. 871)

8. UNIFORM ADMINISTRATIVE REQUIREMENTS: SUBRECIPIENT shall comply with all applicable uniform administrative requirements in accordance with 24 CFR Part 85, “Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments,” as modified by 24 CFR 570.502(a).

SUBRECIPIENT is also required to adhere to all requirements of OMB Circular A-87, “Cost Principles for State and Local Governments”, and OMB Circular A-133, “Audits of State and Local Governments and non-Profit Organizations.”

9. PROCUREMENT: SUBRECIPIENT shall comply with CalHome Program policy concerning the purchase of equipment and shall maintain inventory records of all non-expandable personal property as defined by such policy as may be procured with CalHome funds provided herein.

10. REVERSION OF ASSETS: Upon expiration of the STANDARD AGREEMENT, if SUBRECIPIENT has any CalHome funds on hand as well as any accounts receivables attributable to CalHome funds, must be transferred to GRANTEE. Any real property acquired with CalHome funds must be transferred to GRANTEE upon expiration of this Agreement.

11. GRANTOR RECOGNITION: SUBRECIPIENT shall ensure recognition of the role of the State CalHome Program in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to the funding source.

In addition, SUBRECIPIENT will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. 714
Intergovernmental SUBRECIPIENT Agreement SC-OR

12. CLIENT DATA: SUBRECIPIENT shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to GRANTEE monitors or their designees for review upon request.

13. DISCLOSURE: SUBRECIPIENT understands that client information collected under this Agreement is private and the use or disclosure of such information, when not directly connected with the administration of GRANTEE’S or SUBRECIPIENT’S responsibilities, with respect to services provided under this Agreement is prohibited unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian
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Intergovernmental SUBRECIPIENT Agreement SC-OR
EXHIBIT “G” – INSURANCE REQUIREMENTS
SUBRECIPIENT shall provide and maintain insurance for the duration of this Agreement against claims for injuries to persons and damage to property, which may arise from, or in connection with, performance under the Agreement by SUBRECIPIENT, its agents, representatives, employees or subcontractors, if applicable.

A. Minimum Scope & Limits of Insurance

1. Coverage at least as broad as Commercial General Liability Insurance of $1,000,000 combined single limit per occurrence. If the annual aggregate applies it must be no less then $2,000,000.

2. Comprehensive Automobile Liability Insurance (if applicable) of $1,000,000 per occurrence.
3 Workers' Compensation and Employer's Liability Insurance as required by the State of California with Statutory Limits and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury and disease.

B. Specific Provisions of the Certificate

1. The Certificate of Insurance for General Liability and Comprehensive Automobile Liability Insurance must meet the following requirements:
a. Name the GRANTEE, its officers, agents, employees and volunteers, individually and collectively, as additional insureds.
b. State that such Insurance for additional insureds shall apply as primary insurance and any other insurance maintained by GRANTEE shall be excess.
c. Provide that coverage shall not be suspended, voided, canceled, reduced in coverage, or otherwise materially changed except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to GRANTEE.

2. The Certificate of Insurance for Workers’ Compensation must include the following waiver of subrogation:
a. Waiver of Subrogation. SUBRECIPIENT waives all rights against GRANTEE and its agents, officers, and employees for recovery of damages to the extent these damages are covered by the workers compensation and employers liability.

C. Deductibles and Self-Insured Retentions
The GRANTEE Risk Manager must approve any deductible or self-insured retention that exceeds $100,000.
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Intergovernmental SUBRECIPIENT Agreement SC-OR
D. Acceptability of Insurance
Insurance must be placed with insurers with a current rating given by A.M. Best and Company of no less than A (-) from a company admitted to do business in California.

Any waiver of these standards is subject to approval by GRANTEE Risk Manager or GRANTEE Risk Manager’s designee.

E. Verification of Coverage
Prior to approval of this Agreement by GRANTEE, SUBRECIPIENT shall file with the submitting department, certificates of insurance with original endorsements effecting coverage in a form acceptable to GRANTEE. GRANTEE reserves the right to require certified copies of all required insurance policies at any time. 717
Association of California Water Agencies Joint Powers Insurance Authority P.O. Box 619082, Roseville, CA 95661-9082

CERTIFICATE OF COVERAGE

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN THE COVERAGE DOCUMENT. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE COVERAGE DOCUMENTS LISTED HEREIN.

MEMBER
Paradise Irrigation District
6332 Clark Road
Paradise, CA 95969

COVERAGE INFORMATION
This is to certify that coverage documents listed herein have been issued to the Member Agency herein for the Coverage period indicated. Notwithstanding any requirement, term or condition of any contract or other document with respect to which the certificate may be issued or may pertain, the coverage afforded by the coverage documents listed herein is subject to all the terms, conditions and exclusions of such coverage documents.

Type of Coverage Form # Effective
Date
Expiration
Date Limits
General Liability
Commercial General Liability
Contractual Liability
Products/Completed Operations
Occurrence
MOLC-100123 10/01/2023 10/01/2024 Per Occurrence $1,000,000 Aggregate $2,000,000
Auto Liability
Owned Autos
Hired Autos
Non-Owned Autos
MOLC-100123 10/01/2023 10/01/2024 Per Occurrence $1,000,000 Property
Buildings, Fixed Equipment
Personal Property
Auto Physical Damage
Mobile Equipment
Crime
Workers' Compensation
Part 1 - Workers' Compensation
Part 2 - Employer's Liability
MOWC&EL-070123 07/01/2023 07/01/2024 Part 1 Statutory Limits Part 2
Each Accident $2,000,000
Disease - each employee $2,000,000
Disease - coverage limit $2,000,000
Other

DESCRIPTION
Regarding: Intergovernmental Subrecipient Agreement Between The Town Of Paradise And The Paradise Irrigation District For Grant Administration And Project Set-Up Services
Additional Covered Party(ies), as required by written contract or permit: Town of Paradise, its officers, agents, employees and volunteers, per attached Addendum.

Request ID: 0000017516

CERTIFICATE HOLDER
Town of Paradise
Colin Nelson Capital Projects Manager Public Works,
Engineering Department
5555 Skyway
Paradise, CA 95969

CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED COVERAGES BE

CANCELLED BEFORE THE EXPIRATION DATE THEREOF,

NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE
TERMS OF THE MEMORANDUMS OF COVERAGE.

AUTHORIZED REPRESENTATIVE DATE
1/11/2024
718

ADDENDUM
to the
Memorandum of Liability Coverage
for the
Association of California Water Agencies
Joint Powers Insurance Authority
FORM NUMBER: MOLC-100123
MEMBER: Paradise Irrigation District
COVERAGE PERIOD: 10/01/2023 - 10/01/2024
ADDENDUM DATE: 10/01/2023
REQUEST ID: 0000017516
Change in the following Sections
Section IV. WHO IS COVERED is amended to include the following entity(ies) as an Additional Covered Party(ies):

Town of Paradise, its officers, agents, employees and volunteers, as required by written contract or permit. Additional Covered Party(ies) is(are) covered only if the liability is caused in whole or in part by the acts or omissions of the Member Agency and excludes coverage for the sole negligence of the Additional Covered Party(ies), and subject to a $1,000,000 per occurrence and $2,000,000 annual aggregate limit of liability.

Regarding: Intergovernmental Subrecipient Agreement Between The Town Of Paradise And The Paradise Irrigation District For Grant Administration And Project Set-Up Services
Signed By: Date: 1/11/2024
(Authorized Representative)
719

ADDENDUM
to the
Memorandum of Workers' Compensation &
Employer's Liability Coverage
for the
Association of California Water Agencies
Joint Powers Insurance Authority
FORM NUMBER: MOWC&EL-070123
MEMBER: Paradise Irrigation District
COVERAGE PERIOD: 07/01/2023 - 07/01/2024
ADDENDUM DATE: 07/01/2023
REQUEST ID: 0000017516
The following are added to Part Six-CONDITIONS:

Regarding: Intergovernmental Subrecipient Agreement Between The Town Of Paradise And The Paradise Irrigation District For Grant Administration And Project Set-Up Services
Signed By: Date: 1/11/2024
(Authorized Representative)
720

Town of Paradise
Council Agenda Summary
Date: March 12, 2024
Agenda Item: 6(d)
ORIGINATED BY: Marc Mattox, Public Works Director
REVIEWED BY: Jim Goodwin, Town Manager
Scott E. Huber, Town Attorney
SUBJECT: Introduce Ordinance Amending Town Code, Chapter 2, Article V, Section 2.45.105 Concerning Informal Bid
Procedures on Public Works Projects

LONG TERM
RECOVERY PLAN:

Yes, Tiers 1-3, Numerous
COUNCIL ACTION REQUESTED:

1. Consider adopting Resolution No. 2024-____, “A Resolution of the Town Council of the Town of Paradise Adopting the California Uniform Public Construction Cost Accounting Act Policy and Procedure” and,

2. Consider waiving the first reading of the Town of Paradise Ordinance No. 634 and read by title only; and,

3. Introduce Town Ordinance No. 634 “An Ordinance Adding Section 2.45.105 to the Paradise Municipal Code Relating to an Informal Bid Process for Public Works Projects of $200,000 or Less.”
Background:

The Town of Paradise is currently subject to the provisions of Sections 20160-20175 of the Public Contract Code which governs how and when contracts for a public project by a local agency are to be advertised, bid and awarded. The Town of Paradise can elect to have more restrictive provisions, but not any less restrictive than what is in the state law. One of the restrictions in the State Code under which the Town of Paradise must currently operate is the requirement that all public projects with a value of $5,000 or more must be publicly bid. This restriction has the effect, on certain projects, of keeping the Town of Paradise from utilizing its contractor’s forces, or less expensive temporary hires, to optimum efficiency as well as necessitating the use of procedures for smaller projects that are out of proportion to the value of the work being contracted.

The Public Contract Code provides a method to both raise the ceiling on the value of work that the Town of Paradise can perform with its own forces to $60,000 as well as simplifying the procedures for bidding contracts of $200,000 or less in value. In order to be able to use this method, the Town of Paradise is required to adopt an accounting procedure that would be applicable to all public projects. This procedure is called the UCCAP and the corresponding resolution for adoption is attached.

An Ordinance that outlines the agency’s informal bidding procedure needs to be adopted before the agency can informally bid any work that has a value of no more than $200,000. Attached is a draft Ordinance as recommended by the California Uniform Public Construction Cost Accounting Commission. After the informal bidding procedure Ordinance is adopted, the Town would establish its own list of qualified contractors and contractor clearinghouses that would receive notices of informal bid solicitations.
721
Analysis:

By voluntarily subjecting the Town of Paradise to the provisions of the Uniform Construction Cost Accounting Act would open up options relative to either performing, bidding or negotiating public project work that would ultimately lead to more cost-effective use of public funds. The staff, therefore, recommends that the Town of Paradise adopt a Resolution of intention to become subject to the provisions of the Act and introduce the Ordinance to implement the policies and procedures.

Financial Impact:

No direct fiscal impact from approving this ordinance and resolution. 722

TOWN OF PARADISE
RESOLUTION NO. 2024-____

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE ADOPTING THE

CALIFORNIA UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT POLICY AND

PROCEDURES
WHEREAS, the Town of Paradise is currently governed by Sections 20160 – 20162 of the Public Contract Code, which require all Public Projects with expenditures over $5,000 be subject to formal bid procedures; and
WHEREAS, Public Contract Code Sections 22000 et seq., the Uniform Public Construction Cost Accounting Act (“UCCAP”), establishes a uniform cost accounting standard that permits cities to use its own personnel by force account, negotiated contracts or purchase orders for public projects of $60,000 or less, and to use less formal bidding procedures for public projects costing $200,000 or less; and
WHEREAS, more than 180 cities throughout California have adopted the UCCAP; and WHEREAS, the California Uniform Construction Cost Accounting Commission, established under the UCCAP, has developed uniform public construction cost accounting procedures for implementation by local public agencies in the performance of or in the contracting for construction of public projects; and
WHEREAS, adoption of the UCCAP would benefit the Town of Paradise by raising the force account limit, using informal bidding procedures at higher limits if the Town so desires, giving Public Works staff more leeway in the execution of public works projects, speeding up the process of award and completing projects, and simplifying administration of projects.

NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of Paradise hereby elects under Public Contract Code Section 22030 to become subject to the uniform public construction cost accounting procedures set forth in the Act and to the Commission’s policies and procedures manual and cost accounting review procedures, as they may each from time to time be amended, and directs that the Town Clerk notify the State Controller forthwith of this election PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 12th day of March 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ronald Lassonde, Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________
Dina Volenski, CMC, Town Clerk Scott E. Huber, Town Attorney 723

TOWN OF PARADISE
ORDINANCE NO. 634
AN ORDINANCE ADDING SECTION 2.45.105 TO THE PARADISE MUNICIPAL

RELATING TO AN INFORMAL BID PROCESS FOR PUBLIC WORKS PROJECTS OF $200,000 OR LESS
Chapter 2.45.105

2.45.105.010 Purpose.

This section is enacted under the authority of the California Public Contract Code Section 22034 which requires a Town which elects to become subject to the uniform construction cost accounting procedures as set forth in Public Contract Code Sections 22000 through 22044 to enact an ordinance governing informal bidding procedures for the selection of contractors to perform public works projects.

2.45.105.020 Definitions.

In this section, unless the context otherwise requires:

A. “Commission” means the California Uniform Construction Cost Accounting Commission under Public Contract Code Section 22010, et seq.

B. “Public project” means a project defined in Section 20161 of the Public Contract Code which reads as follows:

1. A project for the erection, improvement, painting or repair of public buildings and works.

2. Work in or about streams, bays, waterfronts, embankments, or other work for protection against overflow.

3. Street or sewer work except maintenance or repair.

4. Furnishing supplies or materials for any such project, including maintenance or repair of streets or sewers.

2.45.105.030 Informal bidding procedures.

A public project of $175,000 or less may be let to contract by the informal procedure as set forth in Section 22032 et seq. of the Public Contract Code.

2.45.105.040 Contractors list.

The Town Manager or designee(s) shall develop and maintain a list of qualified contractors identified according to categories which comply with Section 22034 of the Public Contract Code and criteria adopted by the Commission. During November of each year the Town manager or his/her designee(s) shall develop the contractors list by mailing a written notice to construction trade journals designated by the Commission under Section 22036 of the Public Contract Code inviting all licensed contractors to submit the name of their firm to the Town for inclusion on the contractors list of qualified bidders for the following calendar year.

2.45.105.050 Size of project – Methods for bidding.

A. Where a public project of $60,000 or less is to be performed, the Town may perform the project by Town employees, by force account, by negotiated contract or by purchase order, or the Town may elect to follow the informal bidding procedure prescribed in subsection (B) of this section and as amended in Cal. Pub. Cont. Code §§ 22032 and 22034.

B. Where a public project of $200,000 or less is to be performed, not less than 10 days before the bids are due, the Town manager or his/her designee shall mail a written notice inviting informal bids to (1) all contractors for the category of work to be bid as shown on the contractors list developed in accordance with PMC 2.86.040 and/or (2) all construction trade journals 724
designated by the Commission under Cal. Pub. Cont. Code § 22036. Additional contractors and construction trade journals may be notified at the discretion of the Town manager or designee.

C. If there is no list of qualified contractors for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the commission. No notice inviting informal bids is required to be sent to a contractor that does not provide the necessary product or service, such as a proprietary product.

2.45.105.060 Award of contracts.

A. The Town Manager or his/her designee(s) is authorized to award informal contracts under this chapter in accordance with Town council policy.

B. If all bids received on a public project under this procedure set forth in this section are in excess of $200,000, the Town council may award the contract at $212,500 or less to the lowest responsible bidder if the council determines by adopting a resolution by at least four-fifths vote that the Town’s original cost estimate was reasonable.

2.45.105.070 Alternate bidding procedure.

The procedure set forth in this chapter is an alternate to the procedure set forth in Public Contract Code Sections 20160 through 20174.

PASSED AND ADOPTED by the Town Council for the Town of Paradise, of Butte County, State of California on this 12th day of March, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Ronald Lassonde, Mayor
ATTEST:
__________________________
Dina Volenski, CMC, Town Clerk
APPROVED AS TO FORM:
__________________________
Scott E. Huber, Town Attorney
725
726
727
1 TOWN OF PARADISE
RESOLUTION NO. 2024-___

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
PARADISE AWARDING CONSTRUCTION CONTRACT NO. 9435 FIRE
STATION 82 RE-ROOFING PROJECT TO FOUR SEASONS ROOFING

OF CHICO IN THE AMOUNT OF THEIR BASE BID PLUS ADDITIVE
BID NUMBER ONE.

WHEREAS, Fire Station 82 roof was assessed and determined to be in need of a new roof; and,
WHEREAS, the Town of Paradise Fiscal Year 23/24 Budget included $45,000 for the replacement of the roof.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Paradise as follows:

Section 1. The Town Manager is authorized to award and execute the construction contract to Four Seasons Roofing in the amount of their base bid plus additive bid number one for the Station 82 Roof Replacement and approve continency expenditures not exceeding 10% of the total amount.

PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 12th day of March 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By:

Ron Lassonde, Mayor
ATTEST:

Dina Volenski, CMC, Town Clerk
APPROVED AS TO FORM:

Scott E. Huber, Town Attorney
728
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AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement is made and entered into on ______________ by and between the Town of Paradise, a municipal corporation (“Town”) and Four Seasons Roofing (“Contractor”).

RECITALS
A. Contractor is specially trained, experienced and competent to procure and complete a building re-roofing which will be required by this Agreement; and B. Contractor possesses the skill, experience, ability, background, certification, and knowledge to provide the services described in this Agreement on the terms and conditions described herein.

C. Town desires to retain Contractor to render services as set forth in this Agreement.

AGREEMENT
1 SCOPE OF SERVICES.

Except as specified in this Agreement, Contractor shall furnish all technical and professional services, including labor, material, equipment, transportation, supervision and expertise (collectively referred to as “Services”) to satisfactorily complete the work required by Town at his/her own risk and expense. Services to be provided to Town are more fully described in Exhibit A entitled “SCOPE OF SERVICES.” All of the exhibits referenced in this Agreement are attached and are incorporated by this reference.

1.1 Town Obligations
All data applicable to the project and in possession of the Town are to be made available to the Contractor.
2 TIME OF PERFORMANCE.

The services of Contractor shall commence immediately, and shall terminate upon full 729
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project completion.
3 COMPENSATION.

Contractor’s compensation for all services under this Agreement shall not exceed $37,088.00 ($28,241.00 Base Bid and $8,847.00 Additive Bid) and shall be in accordance with the charges set forth in Exhibit “B”. In no event shall Contractor’s compensation exceed Costs and Fees set forth in Exhibit “B” without the prior approval of the Town Manager.
4 METHOD OF PAYMENT.

Contractor shall submit monthly billings, or progress invoices to Town describing the work performed during the preceding month. Contractor’s bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures and segregated by test methods or by specific tasks. Town shall pay Contractor progress payments no later than 30 days after approval of the monthly invoice by Town staff. Approval of the monthly invoice requires the submittal of certified payrolls when prevailing wages rates are in effect for work done during applicable month. Certified payrolls are to be submitted on a weekly basis and within ten days after the week in question.

4.1 Retention of Payment
When payments made by Town equal 95% of the maximum fee provided for in this Agreement, no further payments shall be made until the final work under this Agreement, or for each individual project relating to the Contractor’s services has been accepted by the Town.

4.2 Cost Principles
The Contractor agrees that the Contract Cost Principles and Procedures, 48 CFR, Federal 730
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Acquisition Regulations System, Chapter 1, Part 31 et seq., shall be used to determine the allowability of individual items of cost.

The Contractor also agrees to comply with Federal procedures in accordance with 49 CFR, part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments.

Any costs for which payment has been made to Contractor that are determined by subsequent audit to be unallowable under 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31 et seq., OR 49 CFR, Part 18, Uniform Administrative requirements for Grants and Cooperative Agreements to State and Local Governments, are subject to repayment by the Contractor to State.

Any subcontract in excess of $25,000, entered into as a result of this Agreement, shall contain all the provisions of this Section.

4.3 Contingent Fee
The Contractor warrants, by execution of this Agreement, that no person or selling agency has been employed or retained to solicit or secure this Agreement upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty, the State has the right to annul this Agreement without liability, pay on the value of the work actually performed, or in its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee.
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4.4 Retention Of Records/Audit

4.4.a For the purpose of determining compliance with Public Contract Code Section 10115, et seq. And Title 21, California Code of Regulations, Chapter 21, Section 2500 et. seq., when applicable, and other matters connected with the performance of the Agreement pursuant to Government Code Section 8546.7, the Contractor, subContractors, and the State shall maintain all books, documents, papers, accounting records, and other evidence pertaining to the performance of the Agreement, including but not limited to, the costs of administering the agreement.

All parties shall make such materials available at their respective offices at all reasonable times during the Agreement period and for three years from the date of final payment under the Agreement. The State, the State Auditor, FHWA, or any duly authorized representative of the Federal government having jurisdiction under Federal laws or regulations (including the basis of Federal funding in whole or in part) shall have access to any books, records, and documents of the Contractor that are pertinent to the Agreement from audits, examinations, excerpts, and transactions, and copies thereof shall be furnished if requested.

Any subcontract in excess of $25,000, entered into as a result of this Agreement, shall contain all the provisions of this Section.
5 LABOR COMPLIANCE
The Contractor shall agree through the contract to comply with the provisions of the California Labor Code. For the purpose of this project, eight hours shall constitute a legal day's work.

The Contractor's attention is directed to section 1815 of the labor code regarding overtime 732
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pay and the requirement that a $25 penalty will be levied for each workman for each calendar day during which the overtime pay provision is not met. The Contractor's attention is also directed to the requirements for travel and subsistence payments to all workers needed to execute the Contract.

Subject to the limitations stated in said section, the Contractor shall comply with the apprenticeship provisions of Section 1777.5 of the Labor Code, including the training and hiring of apprentices.

Attention is directed to Section 7-1.02K(2), "Wages" of the Standard Specifications.

Pursuant to Labor Code Section 1770 et seq, the general prevailing wage rates in the county in which the project work is to be done have been determined by the Director of the California Department of Industrial Relations. These wages are set forth in the General Prevailing Wage Rates for this project, available at Town of Paradise and available from the California Department of Industrial Relations’ Internet web site at http://www.dir.ca.gov/DLSR/PWD. Future effective general prevailing wage rates, which have been predetermined and are on file with the California Department of Industrial Relations are referenced but not printed in the general prevailing wage rates. 6 EXTRA WORK.

At any time during the term of this Agreement, Town may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by Town to be necessary for the proper completion of Contractor’s services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Contractor shall not perform, nor be compensated for, Extra Work without prior written authorization from Town.
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7 TERMINATION.

This Agreement may be terminated by the Town immediately for cause or by either party without cause upon fifteen (15) days written notice of termination. Upon termination, Contractor shall be entitled to compensation for services properly performed up to the effective date of termination.
8 OWNERSHIP OF DOCUMENTS.

All reports, plans, studies, documents, and other writings prepared by and for Contractor, in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the Town upon payment to Contractor for such work, and the Town shall have the sole right to use such materials in its discretion without further compensation to Contractor or to any other party. Contractor shall, at Contractor’s expense, provide such reports, plans, studies, documents, and other writings to Town within three (3) days after written request. Contractor shall not be responsible for liabilities, losses, or claims resulting from unauthorized modifications, or reuse other than original intended purpose.
9 LICENSING OF INTELLECTUAL PROPERTY.

This Agreement creates a nonexclusive and perpetual license for Town to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in documents or works of authorship fixed in any tangible medium of expression, including, but not limited to, data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Contractor under this Agreement (“Documents and Data”). Contractor represents and warrants that Contractor has the legal right to license any and all Documents and Data. Contractor makes no such representation and warranty in regard to Documents and Data which may be provided to Contractor by 734
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Town. Town shall not be limited in any way in its use of the Documents and Data at any time.

9.1 Confidentiality.

All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor. Such materials shall not, without the prior written consent of Town, be used by Contractor for any purposes other than the performance of the services under this Agreement. Nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Nothing furnished to Contractor, which is otherwise known to Contractor or is generally known, or has become known, to the related industry shall be deemed confidential. Contractor shall not use Town’s name, seal, or photographs relating to project for which Contractor’s services are rendered, or participate in any publicity pertaining to the Contractor’s services under this Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of Town.

9.2 Contractor’s Books and Records.

9.2.a Contractor shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, expenditures and disbursements charged to Town for a minimum period of two (2) years, or for any longer period required by law, from the date of final payment to Contractor to this Agreement.

Contractor shall maintain all documents and records which demonstrate performance under this 735
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Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement.

Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the Town Manager, Town Attorney, Town Finance Director, or a designated representative of these officers. Copies of such documents shall be provided to the Town for inspection at Town Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Contractor’s address indicated for receipt of notices in this Agreement.

Where Town has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Contractor’s business, Town may, by written request by any of the above named officers, require that custody of the records be given to the Town and that the records and documents be maintained by Town Hall. 10 INDEPENDENT CONTRACTOR.

It is understood that Contractor, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and shall not act as an agent or employee of the Town. Contractor shall obtain no rights to retirement benefits or other benefits which accrue to Town’s employees, and Contractor hereby expressly waives any claim it may have to any such rights.
11 INTEREST OF CONTRACTOR.

Contractor (including principals, associates, and professional employees and subcontractors) covenants and represents that it does not now have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source of income, interest in real property or 736
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investment which would be affected in any manner or degree by the performance of Contractor’s services hereunder. Contractor further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.

Contractor is not a designated employee within the meaning of the Political Reform Act because
Contractor:
a. will conduct research and arrive at conclusions with respect to its rendition of information, advice, recommendation, or counsel independent of the control and direction of the Town or any Town official, other than normal agreement monitoring; and
b. possesses no authority with respect to any Town decision beyond rendition of information, advice, recommendation or counsel. (FPPC Reg. 18700(a)(2).) 12 PROFESSIONAL ABILITY OF CONTRACTOR.

Town has relied upon the professional training and ability of Contractor to perform the services hereunder as a material inducement to enter into this Agreement. Contractor shall have Skip Whaley manage and approve the work of all persons performing professional services under this Agreement. All work performed by Contractor under this Agreement shall be in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in Contractor’s field of expertise.
13 COMPLIANCE WITH LAWS.

Contractor shall use the standard of care in its profession to comply with all applicable federal, state and local laws, codes, ordinances and regulations. 737
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14 LICENSES.

Contractor represents and warrants to Town that it has all licenses, permits, qualifications, insurance, and approvals of whatsoever nature, which are legally required of Contractor to practice its profession. Contractor represents and warrants to Town that Contractor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, certifications, insurance and approvals which are required by the Town for its business.
15 INDEMNITY.

Contractor agrees to defend, indemnify and hold harmless the Town, its officers, officials, employees and volunteers from and against any and all claims, demands, actions, losses, damages, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therein), arising from its negligent performance, misconduct or omissions relating to the services under this Agreement or its failure to comply with any of its obligations contained in this Agreement, except for any such claim arising from the sole negligence or willful misconduct of the Town, its officers, agents, employees or volunteers. 16 INSURANCE REQUIREMENTS.

Contractor, at Town’s own cost and expense, shall procure and maintain, for the duration of the Agreement, the insurance coverage and policies as set forth in Exhibit “C” attached hereto.
17 NOTICES.

Any notice required to be given under this Agreement shall be in writing and will either be served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other party at the address set forth below. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section. 738
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If to Town: Marc Mattox
Public Works Director
Town of Paradise
5555 Skyway
Paradise, CA 95969
If to Contractor: Four Seasons Roofing
11 Commerce Ct. Suite #1
Chico, CA 95928
18 ENTIRE AGREEMENT.

This Agreement constitutes the complete and exclusive statement of Agreement between the Town and Contractor. All prior written and oral communications, including correspondence, drafts, memoranda, and representations are superseded in total by this Agreement.
19 AMENDMENTS.

This Agreement may be modified or amended only by a written document executed by both Contractor and Town and approved as to form by the Town Attorney. 20 ASSIGNMENT AND SUBCONTRACTING.

The parties recognize that a substantial inducement to Town for entering into this Agreement is the professional reputation, experience, and competence of Contractor.

Assignments of any or all rights, duties, or obligations of the Contractor under this Agreement will be permitted only with the express prior written consent of the Town. No subcontractors (other than those listed on Exhibit “A”) shall work under this Agreement without the prior written authorization of the Town. If Town consents to such subcontract, Contractor shall be fully responsible to Town for all acts or omissions of the subcontractor.

Nothing in this Agreement shall create any contractual relationship between Town and a subcontractor of the Contractor nor shall it create any obligation on the part of the Town 739
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to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. Subcontracts shall physically contain the provisions contained in Federal Form 1273.
21 WAIVER.

Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement. 22 SEVERABILITY.

If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.
23 CONTROLLING LAW VENUE.

This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in a state court in the County of Butte.
24 LITIGATION EXPENSES AND ATTORNEY’S FEES.

If either party to this Agreement commences any legal action against the other part arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and attorneys’ fees.
25 MEDIATION.

The parties agree to make a good faith attempt to resolve any disputes arising out of this Agreement through mediation prior to commencing litigation. The parties shall mutually agree upon the mediator and shall divide the costs of mediation equally. If the parties are unable to agree upon a mediator, the dispute shall be submitted to American Arbitration 740
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Association (AAA) or its successor in interest. AAA shall provide the parties with the names of five qualified
26 MEDIATORS.

The Town and Contractor shall meet to select a mediator by each striking the names of two different proposed mediators and thereafter the mediator remaining shall hear the dispute.

If the dispute remains unresolved after mediation, either party may commence litigation. 27 EXECUTION.

This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart. 28 AUTHORITY TO ENTER AGREEMENT.

Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.
29 PROHIBITED INTERESTS.

Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor 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 Contractor, 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, Town shall have the right to rescind this Agreement without liability. For the 741
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term of this Agreement, no member, officer or employee of Town, during the term of his or her service with Town, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising there from. 30 EQUAL OPPORTUNITY EMPLOYMENT.

Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, disability, ancestry, sex or age. 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. IN WITNESS WHEREOF the parties have cause this Agreement to be executed on the date first written above.
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TOWN OF PARADISE “CONTRACTOR”
By: _____________________________ By: ________________________________ Jim Goodwin, Town Manager Title: _______________________________ APPROVED AS TO FORM: ATTEST:

By: ______________________________ By: ________________________________ Scott Huber, Town Attorney Dina Volenski, Town Clerk
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744

Town of Paradise
Council Agenda Summary
Date: March 12, 2024
Agenda Item: 6(f)
ORIGINATED BY: Marc Mattox, Public Works Director
Eric Reinbold, Police Chief
REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: Red Light Cameras

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Hear an update on the potential applicability of Red-Light Enforcement Cameras in Paradise.

Background:

In California, red-light enforcement cameras have become a significant tool in traffic management and law enforcement strategies. These cameras are installed at intersections to capture images and videos of vehicles that run red lights, with the aim of deterring dangerous driving behavior and improving road safety.

Implementation of Red Light Cameras is generally best suited for intersections which chronic traffic violations in addition to certain types of collision data, mainly broadside collisions.

Benefits of utilizing Red Light Cameras include:
 Increased Compliance: The presence of red-light cameras encourages drivers to adhere to traffic signals, thereby reducing the likelihood of accidents caused by red light running.  24/7 Monitoring: Red light cameras operate continuously, providing round-the-clock monitoring of intersections and enforcement of traffic laws, even when law enforcement personnel are not present.
 Evidence for Prosecution: The photographic and video evidence captured by red light cameras can serve as valuable evidence in prosecuting traffic violations, facilitating legal proceedings.
 Objective Enforcement: Red light cameras enforce traffic laws impartially, without bias or human error, ensuring consistent application of regulations.  Public Awareness: The visibility of red-light cameras raises awareness about traffic safety and encourages safer driving behaviors among motorists. 745
Some potential drawbacks of Red-Light Cameras include:
 Privacy Concerns: Critics argue that red light cameras infringe upon privacy rights by capturing images and videos of individuals without their consent, raising concerns about surveillance and civil liberties.
 Questionable Effectiveness: Some studies suggest that the effectiveness of red light cameras in reducing accidents is debatable, with concerns raised about their impact on overall road safety.
 Potential for Inaccuracies: Red light cameras may occasionally produce false positives or inaccurately capture violations, leading to unjust fines and disputes over ticket validity.

Analysis:

On January 9, 2024, Paradise Town Council requested staff provide an analysis of the potential use of Red-Light Cameras Enforcement in Paradise. The Town of Paradise owns and operates fifteen signalized intersections, primarily along the Clark Road and Skyway corridors. It should be noted that the intersection of Clark Road and Pearson Road is owned and operated by the California Department of Transportation as State Route 191.

Red light cameras are highly regulated by the State of California through the Vehicle Code. (Vehicle Code sections 21455.5 trough 21455.7). For example, annual reports are required to be filed with the State of California to disclose particular data, such as

1. The number of alleged violations captured by the red light system;

2. The number of citations issued by a law enforcement agency based on information collected from the automated traffic enforcement system;

3. The number of violations that involved traveling straight through the intersection, turning right, and turning left;

4. The number and percentage of citations that are dismissed by the court; and

5. The number of traffic collisions at each intersection that occurred prior to, and after the installation of, the automated traffic enforcement system.

Further, the legislature has by statute placed significant restrictions on who can operate red light cameras and which portions of the work may be performed pursuant to a written agreement with a third party. In addition, red light cameras were the subject of litigation before the California Supreme Court. In 2014, a driver challenged the evidentiary value of the photographs taken by red light cameras because the peace officer reviewing the photos was not present at the time of the incident and the peace officer did not witness the alleged violation. The California Supreme Court upheld the photos as evidence despite the fact that the peace officer was not immediately present to witness the incident. The legislature has modified the statutes regulating red light cameras to comply with the mandates of the California Supreme Court.

Between January 2020 and December 2022, the Town of Paradise had only four total broadside injury collisions at signalized intersections, listed below:
- Skyway at Pearson Road
- Skyway at Elliott Road
- Clark Road at Wagstaff Road
- Clark Road at Pearson Road (Caltrans)
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Varying research relating to Red-Light Cameras for reducing broadside collisions has also indicated that an increase in rear-end collisions can be expected, reducing the net benefit of the program.

In review of available collision data, costs and benefits, staff recommends Council consider enhanced enforcement activities at specific intersections, partnered with public outreach campaigns to increase motorist compliance.

Financial Impact:

The cost for red-light camera enforcement, typically installed and maintained by private vendors, ranges between $25,000 and $35,000 annually per camera installed on specific intersection approaches. There are no recommended actions/financial impacts at this time. 747

Town of Paradise
Council Agenda Summary
Date: March 12, 2024
Agenda Item: 6(g)
ORIGINATED BY: Eric Reinbold, Police Chief
REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: E-Citation and Collision Reporting Software - Sole-Source

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Discuss and consider adopting Resolution No. 2024-__, a Resolution of The Town Council of The Town of Paradise Making Findings Concerning Sole Vendor For The Purchase of E-Citation and Collision reporting software, by Crossroads Software Inc.

Pursuant To Paradise Municipal Code Sections 2.45.070B, 245.070C, and 245.070G; and,

2. Authorize the Town Manager to enter into an agreement to purchase the Crossroads software and to pay Sun Ridge Systems (RIMS) for the integration of the software into the Police Department’s CAD system. ROLL CALL VOTE
Background:

The Paradise Police Department is committed to providing timely and efficient service to our citizens and guests to our community. This includes the issuance and submission of traffic citations, as well as investigating and writing reports for traffic collisions. The current process for citations involves an officer identifying a violation (generally a Vehicle Code infraction), initiating a traffic stop, obtaining the required documentation from the driver, drafting a paper citation, obtaining a signature from the driver, and submitting the citation for submission to the courthouse.

There are several delays which could be eliminated through the use of electronic citations. The average time for an officer to complete the drafting of a paper citation, depending on the experience of the officer, is between 5-10 minutes. The processing of the citation by the Paradise Police Department Records division takes up to 15 minutes depending on if/how many errors are located on the citation. Inputting information into the Paradise Police Department's records system currently takes approximately 7 minutes. The citation is then sent to the courthouse. If the courthouse locates any errors on the citation, it is returned to the Paradise Police Department, processed as a return, and provided to the officer for amendment. Once the amendment is completed, the processing though the Records Department and to the courthouse is re-initiated.

For traffic collision reports we do not currently have the ability to electronically transfer collision data directly to the Statewide Integrated Traffic Records System (SWITRS). Our current process is to print off all traffic collision reports and mail a hard copy with the sketch to SWITRS. An 748
electronic traffic collision reporting system will save valuable time for both sworn and professional staff at the Paradise Police Department. Having the electronic traffic collision reporting system will also allow for much more accurate data.

Paradise Municipal Code Chapter 2.45 Purchasing System requires the Town to undertake certain purchasing procedures. Paradise Municipal Code Section 2.45.070 allows for exemptions to the Town’s formal bidding process under the following three applicable provisions:

B. When the commodity can be obtained from only one vendor. A commodity shall be considered obtainable only from one vendor when only one vendor offers it for sale, lease or rental, or when only one vendor is able to do so within the time frame and/or under the terms and conditions which reasonably meet the needs of the town, or when there is a sole distributer or manufacturer of a product or service such that there is no acceptable substitute within a specific geographical area C. When the professional services are unique and not appropriate for competitive bidding
G. When computer software is required for a specific town service or activity and its selection is evaluated and determined by the purchasing officer based on the software being the most effective solution for the service or activity.

Analysis:

Staff proposes to use a sole-source justification to purchase and deploy the Crossroads E-Citation and Collision Reporting Software. The E-Citation and Collision Reporting market offers varying degrees of solutions addressing the circumstances we face. Over the past 12 months, your police department contacted, evaluated, and considered several vendors. This included on site demonstrations and hands on testing and evaluations.

When considering the best solution for the Paradise Police Department, and the community it serves, we analyzed the following components:
 Costs – In attempts to compare apples to apples, we received initial quotes ranging from $37,000 - $49,300.
o Crossroads Software provided the most comprehensive proposal.  Error Reduction – Creating fewer chances for mistakes leads to more accurate reporting throughout the system. Possible errors in handwritten paper tickets include illegible writing, incomplete information, misplacing tickets, and vehicle code violations not being written down correctly. A full 10% to 15% of handwritten tickets are dismissed due to illegibility. In contrast, a mere 1% to 2% of e-citations suffer from errors, which translates to an impressive 98% citation accuracy for e-citation.
o Crossroads Software provides better technology to achieve this.  Increases Efficiency – It takes an officer 10 to 15 minutes to manually issue a citation. In contrast, e-citations take two to three minutes and eliminate up to 200 keystrokes. Officers 749
can spend less time on paperwork and more time out on patrol. On the administrative side of e-citation, ticket processing time is significantly reduced. In the past, it could take 12 days for the information from the carbon copy of a handwritten ticket to get to the courts and be officially entered into the system. Now, that information collected by the officer on the scene of a traffic stop travels electronically into the system in just seconds. This also means that once the information is entered it can be used to provide more complete information about traffic violations and accident data. o Crossroads Software provided a combined package to improve both citation reporting and collision data reporting.
 Makes Ticketing Safer – According to the National Law Enforcement Officers Memorial Fund, traffic-related fatalities accounted for over 36% of officer deaths in the first half of 2018. Of those traffic-related fatalities, over 25% were due to roadside deaths. Since ecitation systems can reduce ticketing time by more than 50%, their use makes officers inherently safer.
o Crossroads Software utilizes GPS and GIS technologies to provide data that is automatically applied to the citation or collision report.  Requires Certain Technology – One of the barriers to implementing e-citation is the necessary technology. To access software or other information from the cloud and to transmit the data collected when issuing a citation on a traffic stop, officers need reliable wireless connectivity out in the field. And all of the hardware and software being used must work together. The specifics will be different for every department based on what technology they already have in use and their individual needs. o Crossroads Software works with already used hardware that officers are familiar with.

Based on Paradise Municipal Code Section 2.45.070 B, C and G, staff proposes to proceed with a direct purchase from this vendor without competitive bids. After researching available products and services, staff is completely satisfied there are no other vendors who could provide such a robust system at this price. Secondly, this purchase is wholly necessitated by an inefficient reporting process which is directly related to protect public health, safety, and welfare.

Financial Impact:

The total cost for implementing this project is $65,600.  The purchase price for the Crossroads Software system is $49,300. o Funds for this project will be drawn from an Office of Traffic Safety (OTS) Grant acquired specifically for this program.
 The Records Management System integration costs of $7,300. o Funded by the Department’s Traffic Safety Fund account.  The purchase of mobile printers, at the approximate costs of $9,000. o Funded partially by the Paradise Rotary Club donation of $5,000 and the Department’s Traffic Safety Account.
 Annual service costs of $5,900 will be accounted for in future department budget needs. 750

TOWN OF PARADISE
RESOLUTION NO. 2024-__

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE MAKING

FINDINGS CONCERNING SOLE VENDOR FOR THE PURCHASE OF

CROSSROADS TRAFFIC CITATION AND COLLISION REPORTING SOFTWARE AND SERVICES FROM CROSSROADS SOFTWARE.

WHEREAS, the Town of Paradise recognizes that Crossroads Software is offering a unique solution that qualifies under Paradise Municipal Code Chapter 2.45.070 (B), (C), and (G) for sole source vendor purchase.

WHEREAS, the Town of Paradise to enter into contract with Crossroads Software and services.

NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF PARADISE AS FOLLOWS:

Section 1. The Town Manager of the Town of Paradise, or their designee, is hereby authorized to enter into contract with Crossroads Software for the software and services outlined in Exhibit “A”.

PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 12th day of March, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By: ________________________________
Ronald Lassonde, Mayor
ATTEST:

Dina Volenski, CMC, Town Clerk
APPROVED AS TO FORM:

Scott E. Huber, Town Attorney
751

TOWN OF PARADISE
RESOLUTION 24-__

RESOLUTION TO ADOPT THE SOLE-SOURCED PROPOSAL TO IMPLIMENT THE

CROSSROADS SOFTWARE AND SERVICES
EXHIBIT "A"
Services Pricing Proposal:

The total cost for implementing this project is $65,600.  The purchase price for the Crossroads Software system is $49,300. o Funds for this project will be drawn from an Office of Traffic Safety (OTS) Grant acquired specifically for this program.
 The Records Management System integration costs of $7,300. o Funded by the Department’s Traffic Safety account.
 The purchase of mobile printers, at the approximate costs of $9,000. o Funded partially by the Paradise Rotary Club donation of $5,000 and the Department’s Traffic Safety Account.
 Annual service costs of $5,900 will be accounted for in future department budget needs. 752
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Town of Paradise
Council Agenda Summary
Date: March 12, 2024
Agenda Item: 6(i)
ORIGINATED BY: Marc Mattox, Public Works Director/Town Engineer REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: CDBG-DR Mitigation and Planning Authorizing Resolutions

LONG TERM
RECOVERY PLAN:

Yes
COUNCIL ACTION REQUESTED:

1. Discuss and consider adopting the following:

2. Adopt Resolution No. 2024-__ , “A Resolution of the Town Council of the Town of Paradise Approving an application for funding and the execution of a grant agreement and any amendments thereto from the 2023-2024 funding year of the State CDBG Mitigation Resilience Infrastructure (MIT-RIP) program.” and,

3. Adopt Resolution No. 2024-__ , “A Resolution of the Town Council of the Town of Paradise Approving an application for funding and the execution of a grant agreement and any amendments thereto from the 2023-2024 funding year of the State CDBG Resilient Planning and Public Services (MIT-PPS) Program.” (ROLL CALL VOTE) Background:

The California Department of Housing and Community Development (HCD) announced the release of its Notice of Funding Availability (NOFA) in the total amount of approximately $60 million which includes:
• $40,131,868 in 2018 CDBG-MIT funding for the Resilient Infrastructure Program (MITRIP).
• $10,010,917 in 2018 CDBG-MIT funding for MIT-PPS; and For the CDBG MIT-RIP program allocation, the Town of Paradise is eligible for a direct allocation of $10.2M pursuant to the Program guidelines, shown below:
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Eligible projects under CDBG MIT-RIP are defined as “activities that increase resilience to disasters and reduce or eliminate the long-term risk of loss of life, injury, damage to and loss of property, and suffering and hardship by lessening the impact of future disasters.” CDBG MIT-PPS funds are competitively awarded amongst eligible applicants for projects which meet the following criteria:

Activities necessary to develop a comprehensive community development plan, and develop a policy planning-management capacity so that the recipient of assistance under this title may more rationally and effectively:
(i) determine its needs,
(ii) set long-term goals and short-term objectives,
(iii) devise programs and activities to meet these goals and objectives, (iv) evaluate the progress of such programs in accomplishing these goals and objectives, and
(v) carry out management, coordination, and monitoring of activities necessary for effective planning implementation.

Applications for both the MIT-RIP and MIT-PPS programs are due March 29, 2024.

Analysis:

As a component of the application process for both MIT-RIP and MIT-PPS programs, an authorizing resolution designating authority to submit applications and sign agreements is required, similar to the Town’s efforts through CDBG-DR Infrastructure programs in 2022.

Engineering staff has been preparing applications for three projects under the MIT-RIP program, including:

1. Evacuation Route Permanent Changeable Message Signs – This project would install roadside message signs (smaller scale versions of State highway signs) which could be activated in the event of an emergency. A primary objective would be the installation of two signs per evacuation route (Skyway, Neal, Clark and Pentz). These signs could read “ONE-WAY EVACUATION ACTIVE, USE ALL LANES” for outgoing traffic, while at the same time reading “ROAD CLOSED AHEAD, EVACATION TRAFFIC ONLY” for the ending control point along the same routes.
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2. Private Road Identification Safety Project – This project would inventory and standardize private road street name signs which intersect public roads. The intent would be to increase uniformity for daily emergency first responders.

3. Storm Drain Resiliency Project – This grouping of projects includes the implementation of recommendations from the Town’s 2022 Storm Drain Master Plan. Projects include new storm drain systems and upsizing of existing storm drain infrastructure to meet the new demands and increased flows observed
At the time of the consideration of this Agenda item, cost estimates will be presented in relation to the Town’s $10.2M allocation under the MIT-RIP program.

Scoping work for the MIT-PPS Program is still underway. Some example project types that can be funded in the program include:

Evacuation plans
Community Wildlife Protection Plan
Fire-Hazard Abatement Plan
General Plan Safety Element Integration of the Multi Hazard Plan Hazard Mitigation Plan Update
Disaster Recovery Plan
Community Resilience Centers Needs Assessment
High Visibly Striping and Pull-out Study
At the time of the consideration of this Agenda item, recommendations for projects and costs will be presented.

For both CDBG MIT-RIP and PPS programs, an authorizing resolution is required to be adopted by Paradise Town Council. These resolutions are attached to this Agenda Summary for considerations. Final modifications to the resolutions will be made pursuant to Council direction.

Financial Impact:

There are no new financial impacts associated with this action item. These grant programs fund projects at 100% including project development costs.
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1 TOWN OF PARADISE
RESOLUTION NO.2024-_____

A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE

EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE 2023-2024 FUNDING YEAR OF THE STATE CDBG MITIGATION

RESILIENCE INFRASTRUCTURE (MIT-RIP) PROGRAM
WHEREAS, The Town of Paradise has significant infrastructure capital projects that need attention and funding; and
WHEREAS, The Town of Paradise would like to apply for various grants to obtain funding for some of those infrastructure projects.

NOW THEREFORE BE IT RESOLVED by the Town Council of the Town of Paradise as follows:

SECTION 1:

The Town Council has reviewed and hereby approves the submission to the State of California of one or more application(s) in the aggregate amount, not to exceed, of $10,273,223.87 for the following CDBG-MIT activities, pursuant to the 2017/2018 CDBG MITPPS, and MIT-RIP NOFA:

Activity (Infrastructure Project) Dollar Amount Being Requested for the Activity
$
$
$
SECTION 2:

The Town Council acknowledges compliance with all state and federal public participation requirements in the development of its application(s).
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2 SECTION 3:

The Town Council hereby authorizes and directs the Town Manager or designee Public Works Director/Town Engineer, to execute and deliver all applications and act on its behalf in all matters pertaining to all such applications.

SECTION 4:

If an application is approved, Town Manager or designee Public Works Director/Town Engineer, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement) and any and all subsequent amendments thereto with the State of California for the purposes of the grant.

SECTION 5:

If an application is approved, Town Manager or designee Public Works Director/Town Engineer, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with the grant.

PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Paradise held on March 12, 2024 by the following vote:

AYES:

NOES:

ABSENT:

NOT VOTING:
__________________________
Ronald Lassonde, Mayor
ATTEST:
____________________________
Dina Volenski, CMC, Town Clerk
APPROVED AS TO FORM:
____________________________
Scott E. Huber, Town Attorney
760

3 STATE OF CALIFORNIA
Town of Paradise
I, Dina Volenski, Town Clerk of the Town of Paradise, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted at a duly noticed and convened meeting of said Town Council on March 12, 2024, and that such resolution has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof. __________________________________________
Dina Volenski, Town Clerk of the Town of Paradise,
State of California

By: _____________________________________
Name and Title*
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1 TOWN OF PARADISE
RESOLUTION NO.2024-_____

A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE 2023- 2024 FUNDING YEAR OF THE STATE CDBG MITIGATION RESILIENT PLANNING AND

PUBLIC SERVICES (MIT-PPS) PROGRAM
WHEREAS, The Town of Paradise has significant infrastructure capital projects that need attention and funding; and
WHEREAS, The Town of Paradise would like to apply for various grants to obtain funding for some of those infrastructure projects.

NOW THEREFORE BE IT RESOLVED by the Town Council of the Town of Paradise as follows:

SECTION 1:

The Town Council has reviewed and hereby approves the submission to the State of California of one or more application(s) in the aggregate amount, not to exceed, of $__________________ for the following CDBG-MIT activities, pursuant to the 2017/2018 CDBG MIT-PPS, and MIT-RIP NOFA:

Activity (Infrastructure Project) Dollar Amount Being Requested for the Activity
$
$
$
SECTION 2:

The Town Council acknowledges compliance with all state and federal public participation requirements in the development of its application(s). 762

2 SECTION 3:

The Town Council hereby authorizes and directs the Town Manager or designee Public Works Director/Town Engineer, to execute and deliver all applications and act on its behalf in all matters pertaining to all such applications.

SECTION 4:

If an application is approved, Town Manager or designee Public Works Director/Town Engineer, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement) and any and all subsequent amendments thereto with the State of California for the purposes of the grant.

SECTION 5:

If an application is approved, Town Manager or designee Public Works Director/Town Engineer, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with the grant.

PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Paradise held on March 12, 2024 by the following vote:

AYES:

NOES:

ABSENT:

NOT VOTING:
__________________________
Ronald Lassonde, Mayor
ATTEST:
____________________________
Dina Volenski, CMC, Town Clerk
APPROVED AS TO FORM:
____________________________
Scott E. Huber, Town Attorney
763

3 STATE OF CALIFORNIA
Town of Paradise
I, Dina Volenski, Town Clerk of the Town of Paradise, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted at a duly noticed and convened meeting of said Town Council on March 12, 2024, and that such resolution has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof. __________________________________________
Dina Volenski, Town Clerk of the Town of Paradise,
State of California

By: _____________________________________
Name and Title*
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