Sacramento City Council
November 1, 2022

City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00162 11/1/2022 Consent Item 16.

Acceptance of California Natural Resources Agency Grant for Sacramento LGBT Community Center and Approval of Sacramento LGBT Community Center Subrecipient Agreement with Sacramento Pride Properties, Inc. and Sacramento LGBT Community Center File ID: 2022-00162
Location: District 4
Recommendation: 1) Adopt a Resolution as required by the California Natural Resources Agency:
a) accepting $1 million in state grant funding provided through the California Natural Resources Agency for the Sacramento LGBT Community Center (“LGBT Center”); b) making required certifications; and c) appointing the City Manager or the City Manager’s designee as agent to conduct all negotiations and execute and submit all documents required to complete the LGBT Center project; and 2) pass a Motion authorizing the City Manager or the City Manager’s designee to execute the Sacramento LGBT Community Center Subrecipient Agreement with Sacramento Pride Properties, Inc. and Sacramento LGBT Community Center in an amount not to exceed $1 million for mortgage assistance for the property at 1015 20th Street.

Contact: Consuelo Hernandez, Director of Government Affairs, (916) 808-7395, [email protected], Office of the City Manager; Leslie Fritzsche, Economic Investment Manager, Office of Innovation and Economic Development, (916) 808-5450, [email protected]; Amanda Wallace, Project Manager, (916) 808-5453, [email protected], Office of Innovation and Economic Development Presenter: None
Attachments:
1-Description/Analysis
2-Resolution for California Department of Natural Resources 3-Exhibit A: Project Information Form
4-Exhibit B: California Department of Natural Resources Procedural Guide for Projects 5-Exhibit C: Project Information Package
6- Sacramento LGBT Community Center Subrecipient Agreement with Sacramento Pride Properties, Inc. and Sacramento LGBT Community Center

File ID: 2022-00162 11/1/2022 Consent Item 16.

Description/Analysis
Issue Detail: The State of California has awarded $35,298,984 to the City of Sacramento in grant funds for various City and community projects through Senate Bill (SB) 170, Chapter 240, which makes appropriations for the support of local government programs. The funding includes allocations for projects to be implemented by the City as well as allocations that will be provided to non-profit organizations for their use. On October 12, 2021, the City Council adopted Resolution 2021-0301, which authorized the City Manager or his designee to accept the $35,298,984 for the projects and to take the necessary budget actions to account for the funds.

Included among the projects in Resolution 2021-0301 is the LGBT Center. The $1 million in grant funding that the state approved for the LGBT Center is being administered by the California Natural Resources Agency (Agency). As a condition of receiving the grant funds, the Agency requires the City Council to adopt a resolution, using the Agency’s template, that does the following: accepts the grant funding; makes required certifications; and appoints the City Manager or the City Manager’s designee as agent to conduct all negotiations and execute and submit all documents required to complete the LGBT Center project.

The Agency requires that the funds to be awarded to the City as the grantee who, in turn, will provide the grant funds to Sacramento Pride Properties, Inc. and the Sacramento LGBT Community Center as subrecipients. Sacramento Pride Properties, Inc. owns the property at 1015 20th Street, and the Sacramento LGBT Community Center is the tenant and operates the LGBT community center. Staff is recommending approval of the Sacramento LGBT Community Center Subrecipient Agreement with those entities to provide the mechanism for the City to provide the state awarded funds to Sacramento Pride Properties, Inc. and Sacramento LGBT Community Center. Sacramento Pride Properties, Inc. and the Sacramento LGBT Community Center will be jointly and severally obligated to perform the terms of the Sacramento LGBT Community Center Subrecipient Agreement. The funds will be used to lessen the Sacramento Pride Properties, Inc.’s mortgage burden on its property at 1015 20th Street. This will result in reducing the operational burden of the Sacramento LGBT Community Center freeing up resources to put into additional programming and resources for the LGBT community in Sacramento.

Policy Considerations: SB 170 enumerates funding for several programs for the City, either as a city managed project, or to be passed through to specific local non-profit organizations. This funding will enable the City to implement new projects or improve existing City facilities, enhancing community livability, improving public health and safety, and responding to the needs and interests of residents. The LGBT Center is one of those projects and is consistent with the City’s General Plan Goals in the area of Economic Development.

File ID: 2022-00162 11/1/2022 Consent Item 16.

Economic Impacts: None
Environmental Considerations: Acceptance of the grant funds and entering into the Sacramento LGBT Community Center Subrecipient Agreement is not a project that is subject to CEQA because it is an administrative activity and relates to government fiscal activities, which do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. (CEQA Guidelines §15378(b)(2) and (b)(4)).

Sustainability: Not applicable
Commission/Committee Action: None
Rationale for Recommendation: Providing funding to the LGBT Center will ensure that Sacramento’s LGBTQ+ community will always have a place to call home in the region. The funding will allow the Sacramento LGBT Community Center to focus future philanthropic support on increasing service capacity and meeting access and functional needs of Sacramento’s LGBTQ+ community.

Financial Considerations: The Legislature has allocated specific funding for City and community projects (SB 170). Some of the projects will be managed by the City and some of the projects will be a pass-through to non-profit agencies. The LGBT Center is a project that has been identified to receive funding. The state has designated the Agency as the lead state agency that will distribute the $1 million in funding. As part of the requirements for the funding, the City is required to adopt the Agency’s standard resolution accepting the funds (attachment 2), including the Project Information Form attached as Exhibit A to the resolution (attachment 3).

The City will be required to follow the Agency’s Procedural Guide for General Fund Specified Planning Grant Projects, included as Exhibit B to the resolution (attachment 4), which requires the City to submit a Project Information Package in a form substantially similar to the package included as attachment 5 to this staff report. Staff will be required to maintain all financial records, provide periodic progress reports and invoicing to the Natural Resources Agency.

Local Business Enterprise (LBE): None
Background: The Sacramento LGBT Community Center works to create a region where LGBTQ+ people thrive. In 2019, the City of Sacramento provided a $750,000 grant to assist the Center in securing a commercial mortgage to purchase a new property. In 2020, the Sacramento LGBT Community Center transferred fee title to the property at 1015 20th Street to Sacramento Pride Properties, Inc. which is a title holding company whose sole purpose is to hold real estate on behalf of the LGBT Center in accordance with Section 501(c)(2) of the Internal Revenue Code. In

File ID: 2022-00162 11/1/2022 Consent Item 16.
anticipation of that transfer of title, the Sacramento LGBT Community Center and Sacramento Pride Properties, Inc., entered into a lease agreement under which Sacramento Pride Properties, Inc., leases the property to the Sacramento LGBT Community Center. The Sacramento LGBT Community Center continues to use the property to fulfill its mission. In connection with the transfer of title, Sacramento Pride Properties, Inc., assumed the Sacramento LGBT Community Center’s obligation under the mortgage loan for the property.

The Sacramento LGBT Community Center is currently in the middle of a capital campaign with the goal of paying off the commercial mortgage and renovating the facility to increase service capacity and meet access and functional needs of Sacramento’s LGBTQ+ community. Paying off the mortgage will ensure that the LGBTQ+ community will always have a place to call home in the region and future philanthropic support can be primarily focused on advancing the mission and serving more people. $1 million in the 2021-22 State budget was allocated to the City of Sacramento for the Sacramento LGBT Community Center’s capital project and associated costs. 100% of this funding will be dedicated to pay down the mortgage to fulfill this purpose. It is anticipated that these funds could become available by the end of 2022.

RESOLUTION NO.

Adopted by the Sacramento City Council

APPROVING THE ACCEPTANCE OF $1,000,000 IN STATE OF CALIFORNIA GENERAL

FUND GRANT FUNDS FOR THE SACRAMENTO LGBT COMMUNITY CENTER

BACKGROUND

A. The Legislature and Governor of the State of California have approved a grant for the project shown above; and
B. The California Natural Resources Agency has been delegated the responsibility for the administration of the grant project, setting up necessary procedures; and C. Said procedures established by the California Natural Resources Agency require the Grantee to certify by resolution the approval of the Project Information Package before submission of said package to the State; and
D. The Grantee will enter into an agreement with the State of California for subject project.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. The City Council approves the acceptance of general fund allocation for local assistance for the above project(s); and
Section 2. The City Council certifies that said agency understands the assurances and certification in the Project Information Form, which is included as Exhibit A and is a part of this resolution; and
Section 3. The City Council certifies that said agency will have sufficient funds to develop/complete the planning project(s) or will secure the resources to do so; and
Section 4. The City Council certifies that said agency will comply with the provisions of Section 1771.5 of the California Labor Code.

Section 5. If applicable, the City Council certifies that the project will comply with any laws and regulation including, but not limited to, the California Environmental Quality Act (CEQA), legal requirements for building codes, health and safety codes, disabled access laws, environmental laws and, that prior to commencement of construction, all applicable licenses and permits will have been obtained.

Section 6. The City Council certifies that said agency has reviewed and understands the General Provisions contained in the Project Agreement shown in the Procedural Guide, which is included as Exhibit B and is part of this resolution; and Section 7. The City Council appoints the City Manager or the City Manager’s designee as agent to conduct all negotiations, execute and submit all documents including, but not limited to Project Information Form, agreements, payment requests and so on, which may be necessary for the completion of the aforementioned project(s).

Table of Contents:

Exhibit A – Project Information Form
Exhibit B – California Department of Natural Resources Procedural Guide for Projects Exhibit C – Project Information Package

9 F. PROJECT INFORMATION FORM
Project Name Estimated Date of Completion: 12/31/2022
The Sacramento LGBTQ Community Center Grant Amount: $1,000,000 Estimated Total Project Cost: $4,300,000
(State grant, other funds, and in -kind)
Grantee Name (with mailing address) County Nearest City/Town City of Sacramento Check one: Sacramento Sacramento
915 I Street, 5th Floor ☐ Nonprofit Project Address (or nearest cross street) Sacramento, CA 95814 ☒ Local Agency 1015 20th Street
☐ State Agency Sacramento, CA 95811
Senate Dist. Assembly Dist. US Congressional Dist.
6 7 6
Grantee’s Representative Authorized in Resolution (Signature required at bottom of this page) Name: Michael Jasso Title: Assistant City Manager
Phone: 916-808-1380 Email: mjasso @cityofsacramento.org Project Manager – Person with day -to-day responsibility for project (if different from authorized representative) Name: Amanda Wallace Title: Development Project Manager Phone: 916-808-5453 Email: [email protected] Brief Description of Project Latitude Longitude
(Summarize major activities to be funded by this Grant) 30°34’34.37”N 121°28’47.46”W Pay down balance of existing loan to American River
Bank/Bank of Marin (lender) CEQA/Environmental Requirements ☐ Exempt per CEQA Guidelines § Enter section
Attach filed Notice of Exemption.
☐ CEQA co mp leted
Attach fled Notice of Determination, Negative
Declaration, or Mitigated Negative Declaration
☐ CE QA is not complete
Site Control/Land Tenure (check the box that applies) Attach draft Initial Study with checklists. ☐ Grantee owns the property. ☒ CEQA not triggered Ministerial ☐ Grantee leases the property – Term End: Enter date
☐ Grantee owns an easement on the property.
☐ Grantee has an MOU with the property owner.
☒ Grantee will record deed of trust requiring the property be used for grant purposes
I certify that the information in this Project Information Form, including all attachments, is complete and accurate.

Signed: Enter date
Grantee’s Authorized Representative as shown in Resolution Date Enter name Enter title Designee? ☐ Yes ☐ No
Print Name Title (If yes, attach letter of designation
from authorized representative.)

EXHIBIT A

PROCEDURAL GUIDE

FOR GENERAL FUND SPECIFIED

PLANNING GRANT PROJECTS

Bonds & Grants Office
715 P Street, 20th Floor
Sacramento, CA 95814
(916) 653-2812
www.resources.ca.gov/grants

TABLE OF CONTENTS
Page
A. INTRODUCTION 1
B. GENERAL GRANT INFORMATION, TERMS AND REQUIREMENTS 2
C. PROJECT ADMINISTRATION 3
D. PROJECT INFORMATION PACKAGE CHECKLIST 4
E. PROJECT INFORMATION PACKAGE - WHAT TO SUBMIT 5
F. PROJECT INFORMATION FORM 6
G. PROJECT SUMMARY 7
H. AUTHORIZING RESOLUTION TEMPLATE 8
I. SAMPLE COST ESTIMATE FORM 9
J. SAMPLE PROJECT TIMELINE 10
K. ENVIRONMENTAL COMPLIANCE 11
L. PAYEE DATA FORM 12
M. PAYMENT REQUEST INSTRUCTIONS 14
N. AUDIT AND ACCOUNTING REQUIREMENTS 16
O. SAMPLE GRANT AGREEMENT 18
1 A. INTRODUCTION
This guide governs the administration of appropriations made to the California Natural Resources Agency (Agency) for specified projects. Enclosed are items that make up a P roject Information Package, a Grant Agreement template, and a resolution template, payment instructions and resources. The completed Project Information Package provides a means to define projects for grant funding as well as to specify its authorized representative delegated to sign all documents to be submitted to the California Natural Resources Agency.

Project Information Package documents should be completed, signed, and emailed to the Bonds and Grants Unit Grant Administrator.

2 B. GENERAL GRANT INFORMATION, TERMS AND REQUIREMENTS
Grant Agreement - Funds will not be disbursed until there is a fully executed A greement between the California Natural Resources Agency (Agency) and the grantee. Expenditures made prior to the effective date of the appropriation will not be reimbursed.

Grant Period - Agreements for funds approved by the Legislature must be executed within the period of availability provided in the state budget. Funds must be expended, and all invoices received by March 1, 2026, unless otherwise specified in the FY 21/22 Budget Act.

California E nvironmental Quality Act (CEQA) Compliance - As applicable, grantees must identify their CEQA compliance status. Grantees must receive CEQA approval for the proposed project prior to construction or be exempt from CEQA. Proper documentation of CEQA compliance will be required as part of the information package.

Required Approvals - The grantee must certify that all approvals (including, but not limited to, local permitting requirements, and/or rules from local agencies) required for the project, will be obtained.

Reporting Requirements - Grantees may be r equired to sub mit quarterly progress reports detailing progress on the project to date.

Financial Management and Grant Administration Requirements - It is the responsibility of all grantees to ensure appropriate stewardship of S tate grant funds. Each grantee must maintain financial management systems that provide accurate, current, and complete disclosure of the financial activities of the grant-funded project. To meet this requirement, grantees must maintain adequate accounting practices and procedures, internal controls, and audit trails.

Grant Agreement and Invoicing – In general, t his is a reimbursement -based grant and expenses are incurred and paid for prior to the submission of invoices to Agency. Upon request however, advances are allowed to assist in cash flow. The amount of the advances will be determined based on need. Once an advance is reconciled, Grantee may seek another. Once an executed Grant Agreement is in place, grantees may invoice for expenses on a regular basis, but not more frequently than once a month. Generally, grantees will receive reimbursement within 6-8 weeks of submitting a properly completed invoice. Grantees are advised to maintain adequate funds to cover project costs prior to reimbursement . Ten percent of each payment request is retained until project completion.

3 C. PROJECT ADMINSTRATION
Process after Designation of Grant Award by Legislature

1. Grantee completes and submits Project Information Package (Package) to Agency.

2. Agency reviews Package and, if the proposed project scope meets th e legislative intent, develops a Grant Agreement with the Grantee. Agency sends a Grant Agreement to Grantee for signature.

3. Grantee returns signed Grant Agreement to Agency.

4. Agency returns a fully executed Grant Agreement to Grantee.

5. Grantee submits periodic progress reports and periodic reimbursement requests for eligible expenses, subject to retention. (See Section M Payment Request Instructions.)

6. Grantee completes project and submits Project Completion Package.

7. The state may perform audits, as frequently as annually during the course of the project, and for 4 years after the project is completed.

Project Withdrawal
If a grantee fails to submit a Project Information Package for its allocated amount or otherwise elects not to use its allocation, the allocation will be lost to that grantee. In the event an approved project cannot be completed, and if grant funds were advanced, those funds plus any accrued interest must be returned to the State within 30 days.

Changes to Approved Project
A Grantee wishing to change an approved project shall submit the proposed change in writing to Agency for approval. Any change must be consistent with the authorizing legislation.

Time Extensions
A request for a time extension and its justification must be submitted to the State for approval.

4 D. PROJECT INFORMATION PACKAGE CHECKLIST
Grantee sends the completed Project Information Package to Agency. Grantee should keep a complete copy of the Project Information Package for future use and reference.

Provide the package in the order shown in the following checklist.

Required Documentation Page
☐ Project Information Package Checklist (this page) 4
☐ Project Information Form 6
☐ Project Summary 7
☐ Authorizing Resolution 8
☐ Cost Estimate 9
☐ Project Timeline 10
☐ Environmental Compliance Documents (if applicable) 11 ☐ Payee Data Form (Std. 204) 12

5 E. PROJECT INFORMATION PACKAGE - WHAT TO SUBMIT

1. Project Information Form - Fill out as follows:
a. Grantee: The grantee is the organization that takes formal responsibility and as sumes liability for the project. All correspondence regarding the administrative process will be sent to the day-to-day contact person listed for the grantee. b. Project: Provide the title of your project.
c. District Information: List the district numbers for the Congressional, State Senate, and State Assembly districts in which the project is located. d. CEQA Status: Indicate the environmental compliance status of your project by checking the applicable box in this section.
e. Site Control/Land Tenure: Indicate how the Grantee will satisfy site control by checking the applicable box.
f. Individual authorized in the Resolution must sign the certification at the bottom of the page.

2. Project Summary - Provide a one-page overview of the project.

3. Authorizing Resolution - Provide a signed resolution from the governing bo ard, providing authorization to accept the general fund allocation for local assistance. Follow the template included in this guide.

4. Cost Estimate – Provide a cost estimate reflecting all costs associated with the project.

Projects using in-house services must also detail the labor, materials , and equipment costs as separate line items. (See Section I for a sample format.)

5. Project Timeline - Provide the timeline for key milestones and estimated date ranges of accomplishments. (See Section J for a sample format.)

6. CEQA Compliance - Grantees must demonstrate CEQ A compliance, as applicable. If completed, provide with package. (See Section K Environmental Compliance.)

7. Payee Data Record - Fill in sections 1-5. (See Section L Payee Data Record Form.)

6 F. PROJECT INFORMATION FORM
Project Name Estimated Date of Completion: Enter date
Enter project name Grant Amount: $Enter amount
Estimated Total Project Cost: $Enter amount
(State grant, other funds, and in-kind)
Grantee Name (with mailing address) County Nearest City/Town Enter name Check one: Enter county Enter city/town
Enter address ☐ Nonprofit Project Address (or nearest cross street) Enter address ☐ Local Agency Enter address
☐ State Agency Enter address
Senate Dist. Assembly Dist. US Congressional Dist.

Enter number Enter number Enter number
Grantee’s Representative Authorized in Resolution (Signature required at bottom of this page) Name: Enter name Title: Enter title
Phone: Enter telephone number Email: Enter email
Project Manager – Person with day to day responsibility for project (if different from authorized representative) Name: Enter name Title: Enter title
Phone: Enter telephone number Email: Enter email

Brief Description of Project Latitude Longitude
(Summarize major activities to be funded by this Grant) Enter data Enter data Enter brief project description
CEQA/Environmental Requirements
☐ Exempt per CEQA Guidelines § Enter section
Attach filed Notice of Exemption.
☐ CEQA completed.

Attach fled Notice of Determination, Negative
Declaration, or Mitigated Negative Declaration
☐ CEQA is not complete.

Site Control/Land Tenure (check the box that applies) Attach draft Initial Study with checklists. ☐ Grantee owns the property. ☐ CEQA does not apply under Code § Enter section ☐ Grantee leases the property – Term End: Enter date
☐ Grantee owns an easement on the property.
☐ Grantee has an MOU with the property owner.

I certify that the information in this Project Information Form, including all attachments, is complete and accurate.

Signed: Enter date
Grantee’s Authorized Representative as shown in Resolution Date Enter name Enter title Designee? ☐ Yes ☐ No

Print Name

Title

(If yes, attach letter of designation
from authorized representative.)

7 G. PROJECT SUMMARY
With your Project Information Package, submit a one-page summary that provides a description of the proposed project.

Grantees must comply with all current laws and regulations which apply to the Planning Project, including, but not limited to, environmental laws, health and safety codes, and disabled access laws. Grantee certifies that, prior to commencement of project , all applicable permits, and licenses (e.g., state contractor’s license) will have been obtained.

8 H. AUTHORIZING RESOLUTION TEMPLATE
Resolution No.______________________
RESOLUTION OF (Governing Body))

APPROVING THE ACCEPTANCE OF GENERAL FUND GRANT FUNDS FOR ______________________________ (Title of Project)
WHEREAS, the Legislature and Governor of the State of California have approved a grant for the project shown above; and
WHEREAS, the California Natural Resources Agency has been delegated the responsibility for the administration of the grant project, setting up necessary procedures; and WHEREAS, said procedures established by the California Natural Resources Agency require the Grantee to certify by resolution the approval of the Project Information Package before submission of said package to the State; and
WHEREAS, the Grantee will enter into an agreement with the State of California for subject project(s):

NOW, THEREFORE, BE IT RESOLVED that the _____________________ (Governing Body)

1. Approves the acceptance of general fund allocation for local assistance for the above project(s); and

2. Certifies that said agency understands the assurances and certification in the Project Information Form; and

3. Certifies that said agency will have sufficient funds to develop/complete the planning project(s) or will secure the resources to do so; and

4. Certifies that said agency will comply with the provisions of Section 1771.5 of the California Labor Code.

5. If applicable, certifies that the project will comply with any laws and regulation including, but not limited to, the California Environmental Quality Act (CEQA), legal requirements for building codes, health and safety codes, disabled access laws, environmental laws and, that prior to commencement of construction, all applicable licenses and permits will have been obtained.

6. Certifies that said agency has reviewed and understands the General Provisions contained in the Project Agreement shown in the Procedural Guide; and

7. Appoints the ______________ (designated position, not person occupying position) as agent to conduct all negotiations, execute and submit all documents including, but not limited to Project Information Form, agreements, payment requests and so on, which may be necessary for the completion of the aforementioned project(s).

Approved and adopted the ___ day of _______20_. I, the undersigned, hereby certify that the forgoing Resolution Number _____ was duly adopted by the ________________ (Governing Body).

Following Roll Call Vote: Ayes: _____
Nos: _____

Absent: _____ ________________________________
Clerk/Secretary for the Governing Board

9 I. SAMPLE COST ESTIMATE - PLANNING PROJECTS
# PROJECT ELEMENTS Estimated
Costs
General
Fund
Grant
Funding
Source
(specify)
Funding
Source
(specify)
Planning, Coordination, Outreach
Deliverables

Total
Assessments and Data Collection
Deliverables

Total
Project Management

Total
Grand Total

Only direct project management costs are eligible, no overhead/indirect costs are reimbursable. In- service payroll may not include a “billable rate” or administrative cost allocation. Reimbursements based on completion of Deliverables which may be phases to reimburse upon completion of specific agreed upon tasks. Project management costs can be reimbursed incrementally in conjunction with payment requests for completed Deliverables. Tasks must be directly related to the planning project and supported by detailed time documents for in- house services. All invoices and receipts for all project expenditures from all funding sources will be retained and made available in the event of any future State Audits

10 J. SAMPLE PROJECT TIMELINE
Activity Description Timeline
Planning, Coordination, Outreach Month 20XX- Month 20XX Assessments and Data Collection Month 20XX
Submit final site design/plans/specifications Month 20XX - Month 20XX Development of Draft and Final Documents Month 20XX
Submit Project Closeout package with final
Payment Request to State
Month 20XX

11 K. ENVIRONMENTAL COMPLIANCE
Prior to approval and distribution of grant funds for construction/implementation, every proposed project shall comply with the California Environmental Quality Act, Division 13 (commencing with Section 21000; 14 California Code of Regulations section 15000 et seq. [“CEQA”]).

The State of California, acting through its administering agencies and departments, will typically act as a responsible agency for the purposes of CEQA. Therefore, prior to the State approving funding for a proposed project, one of the following must be submitted:
a. The Notice of Exemption filed with the County Clerk and State Clearinghouse (as applicable) if the proposed project is categorically or statutorily exempt, with the appropriate Public Resources Code section citation to the exemption(s) being relied upon by the lead agency. b. The Negative Declaration or Mitigated Negative Declaration adopted by the lead agency and Initial Study, including a copy of the Environmental Checklist Form located in Appendix G of the CEQA Guidelines and the Notice of Determination filed with the County and with the State Clearinghouse. If the lead agency has adopted a Mitigated Negative Declaration, the grantee must also provide the adopted mitigation monitoring and reporting program*. c. The Final Environmental Impact Report certified and adopted by the l ead agency with Initial Study, including a copy of the Environmental Checklist Form located in Appendix G of the CEQA Guidelines, the adopted mitigation monitoring and reporting program, and the Notice of Determination filed with the County and State Clear inghouse. Please include any State Clearinghouse Responses received by the grantee.
* For b and c, include documentation the State of California Department of Fish and Wildlife CEQA fee was paid or is not applicable.
d. Projects that tier from a Programmatic , Master, or other Environmental Impact Report shall include a copy of any subsequent Initial Study for the proposed project together with a copy of any supplementary environmental documentation adopted by the lead agency, including, if applicable, any required findings pursuant to Public Resources Code section 21157.1, subdivision (c), and the Notice of Determination, filed with the County Clerk and with the State Clearinghouse, as applicable.

Pursuant to Section 75102 of the Public Resources Code 75102, before the adoption of a Negative Declaration or Environmental Impact Report, the lead Agency shall notify the proposed action to a California Native American tribe, which is on the contact list maintained by the Native Heritage Commission, if that tribe has traditional lands located within the area of the proposed project.

12 L. PAYEE DATA RECORD
Fillable form available online at: https://resources.ca.gov/grants/Grant-Program-Resources

13 14
M. PAYMENT REQUEST INSTRUCTIONS
Before Submitting
 Check the Grant Agreement to confirm that any funding requirements outlined in the special provisions section have been fulfilled.
 Check that all costs are allowable.
a. Costs must be incurred within the project performance period outlined on the G rant Agreement cover page and/or subsequent amendments and must align with the cost estimate.
b. All costs must directly relate to the grant funded project (i.e. no overhead costs such as rent or utilities).

What to Include
 Payment Request Form filled out with original signature of authorized agent.  Payment Tracking Sheet filled in with amounts for the current request.  Project Expenditure Form , Grantee Labor Cost Form, and Equipment Cost Form (as applicable). Descriptions should clearly tie to the line items on the payment tracking sheet, as well as the backup documentation.
 Proof of time worked/services rendered for each item listed on the above forms a. For contracted labor or materials, include copies of invoices or receipts. • If an invoice is to be only partially reimbursed with grant funds, the portion allocated to the grant should be clearly marked.
b. For mileage include a log kept by employees documenting date, hours and destinations related to the grant project. Provide documentation of policy to support rate used. c. For equipment, include the schedule showing the rate as well as a log showing the days and hours the equipment was used for this project and by whom. d. For in house labor, include documentation of hours worked on the project and hourly rate. • Send timesheets detailing the days and number of hours each employee who worked on the project.
• Fill out the Employee Compensation Chart to demonstrate the rate being charged. • With first request or when rates change, submit copies of pay stubs that show the employee’s pay rate or salary (may redact personal information). • Only salary plus benefits are eligible. No indirect rates or overhead costs may be folded into the hourly rate. No billable rates may be used.
 Proof of payment showing that payment was made for each cost. Examples include:
a. Copy of both sides of a cancelled check (and breakdown if check is for multiple invoices) b. Copy of bank statement with cleared checks and/or E lectronic Fund Transfer’s (EFT) highlighted
c. Invoice stamped “Paid” by the vendor/contractor
d. Pre-paid card Statement showing credit remaining after particular project charge e.g., pre- paid photo copier card
e. Credit card Statement showing payment made accompanied with original credit card receipt listing specific charges. Must also include proof that the credit card was paid off. f. For grantee personnel services one of the following:
• Chief Financial Officer’s signature on the certification on the Grantee Labor Cost Form • Payroll stubs or payroll service printout for each pay period 15 • Signed acknowledgement from employees regarding receipt of paychecks for a specific time period
 Certification Form and Deliverables for applicable benchmarks for Planning Grants only

Advances - Advances are allowed to assist with cash flow for outside consultants, contractors, materials, etc. In-house labor costs are not eligible for advances. The amount of the advance is determined based on need. Once an advance is reconciled, Grantee may seek another. Contact the project grants administrator to request an advance and protocol for administering.

Final Payments - Final retention will not be released until all closeout documents (in addition to regular payment request documents if applicable) have been received. This includes:
a. Summary of Expenditures from all Project Funding Sources b. Certification of Completion Form
c. Notice of Completion (if applicable)

Helpful Hints
 Organize documentation in an easy to follow format (i.e. chronologically) with related information together and relevant information marked. Include any necessary explanations or notes to clarify certain documentation.
 Bill for the full amount and Agency will take out the retention of 10% for reimbursements .

Retention will be released at closeout.
 Ensure numbers match (e.g. check numbers, amounts on forms and back up documentation, etc.) and that they are accurately calculated. Everything must add up to the penny.

All payment forms and these instructions can be found on our website here:
http://resources.ca.gov/grants/project-administration-forms/

Contact your Grant Administrator for further clarification or questions.

16 N. STATE AUDIT AND ACCOUNTING REQUIREMENTS
Contact your assigned Grant Administrator for questions about the following requirements:

Accounting Requirements
Grantees must use accounting practices that:
• Provide accounting data that clearly records costs incurred on the project and accurately reflects fiscal transactions, with the necessary controls and safeguards.

• Provides a good audit trail, including original source documents such as purchase orders, receipts, progress payments, invoices, employee paystubs and time cards, evidence of payment, etc.

• Provides accounting data so the total cost of each individual project can be readily determined.

Accounting Rules for Employee Services (force account labor) Grantees must follow these accounting practices for employee services:
• Maintain time and attendance records as charges are incurred, identifying the employee through a name or other tracking system, and that employee’s actual time spent on the project. • Time estimates for work performed on the project are not acceptable. • Time sheets that do not identify the specific employee’s time spent on the project are not acceptable. • Costs of the salaries and wages must be calculated according to the grantee’s wage and salary scales and may include employer paid benefit costs such as “workers’ compensation.” • Overtime costs may be allowed under the grantee’s established policy, provided that the regular work time was devoted to the same project.

State Audit
• All projects are subject to an audit by the State of California, Department of Finance within three (3) years following the final payment of grant funds. If the project is selected for an audit, the grantee will be contacted in advance. The audit shall include all books, papers, accounts, documents, c anceled checks or other records of the grantee, as they relate to the project for which the funds were granted. • The grantee must retain the project records for a period of three (3) years and one (1) year following an audit. All documents must be readily available, and an employee with knowledge of the project must be available to assist the auditor. The Grantee must provide a copy of any document, paper, record, or the like, requested by the auditor.

17 Documents Required for the Department of Finance Audit Please have the following documents, files, records, and other resources available for the Department of Finance during their audit of the grant.

Internal Controls:

1. Grantee's organization charts.

2. Written internal procedures and flowcharts for the following procedures:
a. Grantee's receipts and deposits
b. Grantee's disbursements
c. Grantee's invoice preparation

3. Audit reports covering the Grantee's internal control structure and/or expenditures within the last two years.

Contracts:

1. Original contract between the Grantee and the State, including any amendments.

2. All contract documents between the Grantee and any subcontractors.

3. Listing of all active or completed contracts funded by Proposition 12, 13, 40, and 50.

Budgets:

1. Budget modification documents.

Invoices:

1. Invoices from the Grantee to the State for payments made under the grant.

2. Invoices from the subcontractors to the Grantee for payments made under the grant.

3. All supporting documentation associated with the above invoices.

Cash Documents:

1. Receipts showing payments received from the State.

2. Deposit slips showing deposit of the payments received from the State.

3. Canceled checks or disbursement documents showing payments made to vendors for contract disbursements.

4. Bank statements showing the deposit of the receipts and interest earned on any monies held by the Grantee.

Accounting Records:

1. Ledgers showing entries for cash receipts and cash disbursements.

Travel/Per Diem:

1. Grantee travel policies.

2. Travel claims for travel costs charged to the contract organized by the Grantee Invoice on which the travel was charged.

3. Mileage logs if mileage for grantee employees claimed and paid with Grant funds.

Project Files:

1. All supporting documentation maintained in the project files. 18 O. SAMPLE GRANT AGREEMENT

STATE OF CALIFORNIA NATURAL RESOURCES AGENCY

GRANT AGREEMENT
Grantee Name: Insert Here

Project Title: Insert Here

Agreement Number: XXXXXX-0

Authority: Budget Act of 2021 (Chapters 21, 69, and 240, Statutes of 2021)

Program: General Fund Specified Grant Projects

PROJECT DESCRIPTION

Brief Project Description

A detailed project scope and activities, project schedule and project budget are described and attached hereto as Exhibit A.

Grant Funds are to be for planning projects in accordance with the provisions contained in the Procedural Guide for General Fund Specified Planning Projects and this Agreement.

TERMS AND CONDITIONS OF GRANT

Special Provisions

1. If the Grantee is a nonprofit: If the Grantee is a nonprofit organization and ceases to exist, all of its rights, title and interest in the real property shall vest in the State of California. The State may, at its discretion, identify an appropriate public or private entity to accept the right, title, and interest in the real property in lieu of the State.

2. If Grantee is a federally recognized Indian Tribe replace Section F below with the following: Grantee’s Limited Waiver of Sovereign Immunity and Hold Harmless

1. The Parties acknowledge that Grantee is a federally recognized Indian tribe and, as such, possesses sovereign immunity from suit. Nothing in this Grant Agreement is or shall be deemed to be a waiver of Grantee’s sovereign immunity from suit, which immunity is expressly asserted, except for the limited waiver set forth in this section.

2. Limited Waiver of Sovereign Immunity and hold harmless. Notwithstanding any other provision in this Agreement (including, without limitation, any provision of any Exhibit incorporated in this Agreement by reference) to the contrary, nothing in this Agreement shall be deemed to be a general waiver of Grantee’s sovereign immunity from suit, which immunity is expressly asserted. Provided, however, that Grantee hereby expressly, unequivocally, and irrevocably provides a limited waiver of sovereign immunity from suit to allow the Natural Resources Agency to exercise all of its rights under the terms of this Agreement, and Grantee consents to suit in any court of the State of California for any claim to interpret or to enforce this Agreement. This shall include the right to contribution for loss of damage to persons or property arising from, growing out of or in any way connected with or incident to this Agreement, except claims arising from the gross negligence of State, its officers, agents, and employees.

3. Grantee shall indemnify, hold harmless State, its officers, agents and employees in perpetuity against any and all claims, demands, damages, costs, expenses or liability costs aris ing out of the Project, which claims, demands or causes of action arise under Government Code Section 895.2 or otherwise, including but not limited to items to which the Grantee has certified, except for liability arising out of the gross negligence of State, its officers, agents or employees. Grantee acknowledges that it is solely responsible for compliance with 19 items to which it has certified. Under this indemnification provision, Grantee shall not be responsible for defending State in court but shall reimburse for actual invoiced costs associated with the defense.

Grantee and State agree that in the event of judgment entered against the State and Grantee because of the gross negligence of the State and Grantee, their officers, agents or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment.

3. Other special provisions, if applicable

General Provisions

A. Definitions

1. The term "Act" means Budget Act of 2021 (Chapters 21, 69, and 240, Statutes of 2021).

2. The term “Agreement” means this Grant Agreement.

3. The term “Application” means the Project Information Package and any applicable materials supplied by grantee to the State pursuant to the Application Guidelines.

4. The term “Application Guidelines” means the Procedural Guide for General Fund Specified Planning Grant Projects.

5. The term “Grant” or “Grant Funds” means the money provided by the State to the Grantee in this Agreement.

6. The term “Grant Agreement” means a contractual arrangement between the State and Grantee specifying the payment of funds by the State for the perfor mance of specific project objectives within a specific project performance period by the Grantee.

7. The term "Grantee" means an entity who has a signed agreement for grant funds.

8. The term “Other Sources of Funds” means cash or in-kind contributions that are required or used to complete the project beyond the grant funds provided by this Agreement.

9. The term “Payment Request Form” means Form RA212.

10. The term "Project" means the planning activity described in the Application as modified by Exhibit A to be accomplished with grant funds.

11. The term “Project Budget” means the State approved cost estimate included as Exhibit A to this Agreement.

12. The term “Project Scope” means the description or activity for work to be accomplished by the project.

13. The term “Public Agency” means any State of California department or agency, a county, city, public district, or public agency formed under California law.

14. The term "State" means the Secretary for California Natural Resources or his/her representatives, or other political subdivision of the State.

B. Project Execution

1. Subject to the availability of funds in the Act, the State hereby grants to the Grantee a sum of money (Grant Funds) not to exceed the amount stated on the signature page in consideration of and on condition that the sum be expended in carrying out the purposes as set forth in the description of project in this Agreement and its attachments and under the Terms and Conditions set forth in this Agreement.

20 2. Grantee shall furnish any and all additional funds that may be necessary to complete the project.

3. Grantee shall complete the project in accordance with the Project Performance Period set forth on the signature page unless an extension has been formally granted by the State and under the Terms and Conditions of this Agreement. Extensions may be requested in advance and will be considered by State, at its sole discretion, in the event of circumstances beyond the control of the Grantee, but in no event beyond March 1, 2026.

4. Grantee certifies that the scope of work does and will continue to comply with all current laws and regulations which apply to the planning project identified in Exhibit A, including but not limited to, environmental laws, including but not limited, CEQA, health and safety codes, and disabled access laws

5. Projects must comply with any applicable laws pertaining to prevailing wage and labor compliance.

6. Prior to the commencement of any work, Grantee agrees to submit in writing to the State for prior approval any deviation from the original Project Scope per Exhibit A and the Application. Changes in Project Scope must continue to meet the need cited in the original application or they will not be approved. Any modification or alteration in the Project as set forth in the Application on file with the State must be submitted to the State for approval. Any modification or alteration in the Project must also comply with all current laws and regulations, including but not limited to CEQA.

C. Project Costs

1. Unless otherwise agreed upon, Grant Funds provided to Grantee under this Agreement will be disbursed for eligible costs, on a reimbursement basis, as follows, but shall not exceed in any event the amount set forth on the signature page of this Agreement:

a. Approved costs attributed to the planning project. Up to ten percent (10%) of the reimbursement amount will be held back and issued as a final payment upon completion of the Project.

b. Remaining Grant Funds shall be paid up to the total amount of the Grant Funds or the actual Project cost, whichever is less, upon completion of the Project, receipt of a detailed summary of Project costs from the Grantee found to be satisfactory by the State, and the satisfactory completion of a site inspection by the State.

c. Advance payments may be made at the discretion of the State.

d. Grantee agrees to use any Grant Funds advanced by the State under the terms of this Agreement solely for the Project herein described.

2. Payment Documentation:

a. All payment requests must be submitted using a completed Payment Request Form. This form must be accompanied by an itemized list of all expenditures that clearly documents the check numbers, dates, recipients, line-item description as described in the project budget approved by the State and amounts.

Each payment request must also include proof of pa yment such as receipts, paid invoices, canceled checks or other forms of documentation demonstrating payment has been made.

b. Any payment request that is submitted without the required itemization and documentation will not be authorized. If the payment request package is incomplete, inadequate, or inaccurate, the State will inform the Grantee and hold the payment request until all required information is received or corrected. Any penalties imposed on the Grantee by a contractor, or other consequence, because of delays in payment will be paid by the Grantee and is not reimbursable under this Agreement.

3. Grant funds in this award have a limited period in which they must be expended. Grantee expenditures funded by the State must occur within the time frame of the Project Performance Period as indicated in this Agreement.

4. Except as otherwise provided herein, the Grantee shall expend grant funds in the manner described in the Exhibit A approved by the State. The total dollars of a category in the project budget may be increased by up 21 to ten percent (10%) through a reallocation of funds from another category, without approval by the State.

However, the Grantee shall notify the State in writing when any such reallocation is made and shall identify both the item(s) being increased and those being decreased. Any cumulative increase or decrease of more than ten percent (10%) from the original budget in the amount of a category must be approved by the State. In any event, the total amount of the grant funds may not be increased, nor may any adjustments exceed the limits for management costs as described in the Application Guidelines.

D. Project Administration

1. Grantee shall promptly provide project reports upon request by the State. In any event Grantee shall provide the State a report showing total final project expenditures with the final payment request and required closing documents.

2. Grantee shall make property and facilities acquired or developed pursuant to this Agreement available for inspection upon request by the State.

3. If Grant Funds are advanced, the Grantee shall place these Funds in a separate interest -bearing account, setting up and identifying such account prior to the advance. Interest earned on Grant Funds shall be used on the Project, as approved by the State. Any overpayment of Grant Funds in excess of final project costs shall be returned to the State within sixty (60) days of completion of the Project or the end of the Project performance period as shown on the signature page, whichever is earlier.

4. Grantee shall submit all documentation for project completion, including a notice of completion as applicable and final reimbursement within ninety (90) days of project completion, but in no event any later than March 1, 2026.

5. Final payment is contingent upon State verification that project is consistent with project scope as described in Exhibit A, together with any State approved amendments.

6. This Agreement may be amended by mutual agreement in writing between Grantee and State. Any request by the Grantee for amendments must be in writing stating the amendment request and reason for the request.

The Grantee shall make requests in a timely manner and in no event less than sixty (60) days before the effective date of the proposed amendment.

7. Grantee must report to the State all sources of other funds for the project.

E. Project Termination

1. Prior to the completion of Project either party may terminate this Agreement by providing the other party with thirty (30) days’ written notice of such termination. The State may also terminate this Grant Agreement for any reason at any time if it learns of or otherwise discovers that there is a violation of any state or federal law or policy by Grantee which affects performance of this or any other grant agreement or contract entered into with the State.

2. If the State terminates without cause the Agreement prior to the end of the Project Performance Period, the Grantee shall take all reasonable measures to prevent further costs to the State under this Agreement. The State shall be responsible for any reasonable and non- cancelable obligations incurred by t he Grantee in the performance of the Agreement prior to the date of the notice to terminate, but only up to the undisbursed balance of funding authorized in this Agreement.

3. If the Grantee fails to complete the project in accordance with this Agreement, or fails to fulfill any other obligations of this Agreement prior to the termination date, the Grantee shall be liable for immediate repayment to the State of all amounts disbursed by the State under this Agreement, plus accrued interest and any further costs related to the project. The State may, at its sole discretion, consider extenuating circumstances and not require repayment for work partially completed provided that the State determines it is in the State’s best interest to do so. This paragraph shall not be deemed to limit any other remedies available to the State for breach of this Agreement.

22 4. Failure by the Grantee to comply with the terms of this Agreement or any other agreement under the Act may be cause for suspension of all obligations of the State hereunder.

5. Failure of the Grantee to comply with the terms of this Agreement shall not be cause for suspending all obligations of the State hereunder if, in the judgment of the St ate, such failure was due to no fault of the Grantee. At the discretion of the State, any amount required to settle at minimum cost any irrevocable obligations properly incurred shall be eligible for reimbursement under this Agreement.

6. Because the benefit to be derived by the State, from the full compliance by the Grantee with the terms of this Agreement, is the for the purposes as stated in the Application for the people of the State of California, and because such benefit exceeds to an immeasurable and unascertainable extent the amount of money furnished by the State by way of grant funds under the provisions of this Agreement, the Grantee agrees that payment by the Grantee to the State of an amount equal to the amount of the grant funds disbursed under this Agreement by the State would be inadequate compensation to the State for any breach by the Grantee of this Agreement. The Grantee further agrees therefore, that the appropriate remedy in the event of a breach by the Grantee of this Agreement shall be the specific performance of this Agreement, unless otherwise agreed to by the State.

F. Hold Harmless

1. Grantee shall waive all claims and recourses against the State, including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this Agreement, except claims arising from the gross negligence of State, its officers, agents and employees.

2. Grantee shall indemnify, hold harmless and defend State, its officers, agents and employees in perpetuity against any and all claims, demands, damages, costs, expenses or liability costs arising out of the project, including development, construction, operation or maintenance of the property described in the project description which claims, demands or causes of action arise under Government Code Section 895.2 or otherwise, including but not limited to items to which the Grantee has certified, except for liability arising out of the gross negligence of State, its officers, agents or employees. Grantee acknowledges that it is solely responsible for compliance with items to which it has certified.

3. Grantee and State agree that in the event of judgment entered against the State and Grantee because of the gross negligence of the State and Grantee, their officers, agents or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment.

G. Financial Records

1. Grantee shall maintain satisfactory financial accounts, documents, and records for the project and to make them available to the State for auditing at reasonable times. Grantee shall also retain such financial accounts, documents, and records for three (3) years after final payment and one (1) year following an audit.

2. Grantee agrees that during regular office hours, the State and its duly authorized representatives shall have the right to inspect and make copies of any books, records or reports of the Grantee pertaining to this Agreement or matters related thereto. Grantee shall maintain and make available for inspection by the State accurate records of all of its costs, disbursements, and receipts with respect to its activities under this Agreement.

3. Grantee shall use applicable Generally Accepted Accounting Principles, unless otherwise agreed to by the State.

H. Materials/Plans

1. The Grantee agrees that all data, plans, drawings, specifications, surveys, studies, and other written or graphic work produced in the performance of this Agreement, herein referred to as “materials” are subject to the rights of the State as set forth in t his section. The State shall have the right to reproduce, publish, and use all such work, or any part thereof, in any manner and for any purposes whatsoever and to authorize others to do so.
23 2. Grantee agrees that the grantee shall use the materials developed with grant funds under this agreement only for the purpose for which the grant funds were requested and no other use of the materials shall be permitted except by written permission.

3. Grantee must certify the materials developed with grant funds under this agreement shall remain available for public review. This Agreement shall not prevent the transfer of the materials from the Grantee to a Public Agency, if the successor Public Agency assumes the obligations imposed by this Agreement.

4. If the use of the materials is changed to a use that is not permitted by the Agreement, or if the materials are sold or otherwise disposed of, at the State’s sole discretion, an amount equal to (1) the amount of the Grant, or (2) the proceeds from the sale or other disposition, whichever is greater, may be reimbursed to the State.

I. Nondiscrimination

1. During the performance of this grant, grantee and its subcontractors shall not unlawfully discriminate, harass or allow harassment, against any person because of sex, sexual orientation, race, color, religious creed, marital status, denial of family and medical care leave, ancestry, national origin, medical condition (cancer/genetic characteristics), age (40 and above), disability (mental and physical) including HI V and AIDS, denial of pregnancy disability leave or reasonable accommodation. Grantee and subcontractors shall ensure that the evaluation and treatment of all persons, and particularly their employees and applicants for employment are free from such discrimination and harassment. Grantee and its subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, §12900 et seq.) and the applicable regulations promulgated thereunder (Cal. Code Regs, tit. 2, §7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, §12990 (a)–(f), are incorporated into this grant by reference and made a part hereof as if set forth in full (Cal. Code Regs, tit. 2, §7285.0 et seq.).

Grantee shall include this non-discrimination and compliance provisions of this clause in all subcontracts to perform work under the grant.

2. The Grantee shall not discriminate against any person on the basis of residence except to the extent that reasonable difference in admission or other fees may be maintained on the basis of residence and pursuant to law.

3. The completed Project shall be available to members of the public generally.

J. Application Incorporation

The Grant Guidelines and the Application and any subsequent changes or additions to the Application approved in writing by the State are hereby incorporated by reference into this Agreement as though set forth in full in this Agreement.

K. Severability

If any provision of this Agreement or the Application thereof is held invalid, that invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provision or application, and to this end the provisions of this Agreement are severable.

L. Waiver

No term or provision hereof will be considered waived by either party, and no breach excused by either party, unless such waiver or consent is in writing and signed on behalf of the party against whom the waiver is asserted. No consent by either party to, or waiver of, a breach by either party, whether expressed or implied, will constitute consent to, waiver of or excuse of any other, different, or subsequent breach by either party.

M. Assignment

Except as expressly provided otherwise, this Agreement is not assignable by the Grantee either in whole or in part.

24 N. Disputes

If the Grantee believes that there is a dispute or grievance between Grantee and the State arising out of or relating to this Agreement, the Grantee shall first discuss and attempt to resolve the issue informally with the Agency Grants Administrator. If the issue cannot be resolved at this level, the Grantee shall follow the following procedures:

1. If the issue cannot be resolved informally with the Agency Grants Administrator, the Grantee shall submit, in writing, a grievance report together with any evidence to the Deputy Assistant Secretary for Bonds and Grants for the California Natural Resources Agency. The grievance report must state the issues in the dispute, the legal authori ty, or other basis for the Grantee’s position and the remedy sought. Within ten (10) working days of receipt of the written grievance report from the Grantee, the Deputy Assistant Secretary shall make a determination on the issue(s) and shall respond in writing to the Grantee indicating the decision and reasons, therefore. Should the Grantee disagree with the Deputy Assistant Secretary’s decision, the Grantee may appeal to the Assistant Secretary for Administration and Finance for the Natural Resources Agency.

2. The Grantee must submit a letter of appeal to the Assistant Secretary explaining why the Deputy Assistant Secretary’s decision is unacceptable. The letter must include, as an attachment, copies of the Grantee’s original grievance report, evidence originally submitted, and response from the Deputy Assistant Secretary.

The Grantee’s letter of appeal must be submitted within ten (10) working days of the receipt of the Deputy Assistant Secretary’s written decision. The Assistant Secretary or designee shall, within twenty (20) working days of receipt of Grantee’s letter of appeal, review the issues raised and shall render a written decision to the Grantee. The decision of the Assistant Secretary or designee shall be final.

O. Audit Requirements

Grant projects are subject to audit by the State annually and for three (3) years following the final payment of grant funds. The audit shall include all books, papers, accounts, documents, or other records of the Grantee, as they relate to the project for which the grant funds were granted.

PRO

CEDURAL GUIDE

FOR GENERAL FUND SPECIFIED

DEVELOPMENT AND ACQUISITION

GRANT PROJECTS
C
alifornia Natural Resources Agency
Bonds & Grants Office
715 P Street, 20th Floor
Sacramento, CA 95814
(916) 653
-2812
www.resources.ca.gov/grants
Exhibit C

TABLE OF CONTENTS
Page
A. INTRODUCTION 1
B. GENERAL GRANT INFORMATION, TERMS AND REQUIREMENTS 2 C. PROJECT ADMINISTRATION 4
D. PROJECT INFORMATION PACKAGE CHECKLIST 6
E. PROJECT INFORMATION PACKAGE – WHAT TO SUBMIT 7
F. PROJECT INFORMATION FORM 9
G. PROJECT SUMMARY 10
H. AUTHORIZING RESOLUTION TEMPLATE 11
I. SAMPLE COST ESTIMATE FORM DEVELOPMENT PROJECTS 12
J. SAMPLE COST ESTIMATE FORM ACQUISITION PROJECTS 13
K. SAMPLE PROJECT TIMELINE 14
L. PROPERTY DATA SHEET 15
M. LAND TENURE/SITE CONTROL 16
N. ENVIRONMENTAL COMPLIANCE 17
O. PERMIT APPROVAL STATUS 18
P. PAYEE DATA FORM/GOVERNMENT AGENCY TAXPAYER ID FORM 19 Q. WILLING SELLER LETTER (ACQUISITONS ONLY) 20
R. PAYMENT REQUEST INSTRUCTIONS 21
S. AUDIT AND ACCOUNTING REQUIREMENTS 24
T. DOCUMENTS REQUIRED FOR DEPARTMENT OF FINANCE AUDIT 25 Q. SAMPLE GRANT AGREEMENT 26

1 A. INTRODUCTION
This guide governs the administration of general fund appropriations made to the California Natural Resources Agency (Agency) for local assistance grants for specified projects. Enclosed are information and forms to complete a Project Information Package which must be submitted to Agency before a Grant Agreement can be developed and funds distributed. A Sample Grant Agreement template is also provided.

2 B. GENERAL GRANT INFORMATION, TERMS AND REQUIREMENTS
Grant Agreement – Funds will not be disbursed until there is a fully executed Grant Agreement between the California Natural Resources Agency (Agency) and the Grantee.

Expenditures made by the Grantee prior to the effecti ve date of the appropriation and outside of the project performance period will not be reimbursed by grant funds.

Funding Availability – General fund appropriations are available for use by Grantee for the limited time period described in the state budget. For this appropriation, f unds must be fully expended and all invoices for reimbursement be submitted to Agency by March 1, 2026, unless otherwise specified in the FY 21/22 Budget Act.

Grant Performance Period – The Grant Agreement will specify a specific time frame for performance of the project, called the Project Performance Period. All project costs to be covered by grant funds must be incurred within the Project Performance Period.

California Environmental Quality Act (CEQA) Compliance – As applicable, Grantee must identify its CEQA compliance status. Grantee must receive CEQA approval for the proposed project prior to construction or be exempt from CEQA. Proper documentation of CEQA compliance will be required as part of the Project Information Package described in Section D.

Required Approvals – Grantee must certify that all approvals (including, but not limited to, local perm itting requirements and/or rules from local agencies ) required for the project, will be obtained.

Grantee is responsible for ensuring the project complies with all applicable local, state, and federal laws and regulations, including, but not limited to, CEQA/NEPA, legal requirements for construction, building codes, health and safety codes, state contractor and other licenses, and disabled access laws. By submitting a Package, Grantee certifies that, prior to commencement of construction, all applicable permits and licenses (e.g., state contractor’s license) will have been obtained.

Reporting Requirements – Grantee may be required to submit periodic progress reports to Agency detailing progress on the project to date.

Financial Management and Grant Administration Requirements – It is Grantee’s responsibility to ensure appropriate stewardship of State grant funds. Grantee must maintain a financial management system that provide accurate, current, and complete disclosure of the financial activities of the grant-funded project. To meet this requirement, Grantee must maintain adequate accounting practices and procedures, internal controls, and audit trails.

Payment Requests – This is generally a reimbursement grant, where expenses are incurred and paid for prior to the submission of a payment request for reimbursement.

Once an executed Grant Agreement is in place, Grantee may submit payment requests on a regular basis, but not more frequently than once a month. Generally, grantee will receive reimbursement within 6-8 weeks of submitting a properly completed payment request. Grantee is advised to maintain adequate funds to cover project costs prior to 3 reimbursement. Ten percent of the amount requested in each payment request is retained until project completion.

Although primarily a reimbursement grant, advances may be requested to assist in cash flow. The amount of advances will be determined based on need. Grantee may not seek a second advance until the first is fully reconciled. No more than 90 percent of grant funds can be advanced.

For acquisition projects, Grantee may request an advance of funds into escrow (subject to retention).

4 C. PROJECT ADMINSTRATION
Process after Designation of Grant Award by Legislature

1. Grantee completes and submits Project Information Package (Package) to Agency.

2. Agency reviews Package and, if the proposed project scope meets th e l egislative intent of the appropriation, develops a Grant Agreement with Grantee.

3. Grantee and Agency execute the Grant Agreement via DocuSign.

4. Grantee submits periodic progress reports throughout the project performance period.

For Acquisitions

5. G rantee submits an appraisal for Department of General Services (DGS) review.

6. G rantee requests an advance of funds into escrow (subject to retention).

7. As applicable, Grantee records Deed Restrictions.

8. After close of escrow, Grantee submits close out documents to Agency.

9. Agency releases retained funds to Grantee.

10. The State may perform audits as frequently as annually during the course of the project and for four years after project completion.

For Development Projects

5. Grantee submits land tenure/site control documents to Agency.

6. Grantee commences preliminary work (planning, design, permitting, CEQA, etc.).

7. Grantee submits payment requests for reimbursement of project expenditures. (see Section Q Payment Request Instructions).

8. Prior to commencing construction, grantee submits final design plans for the State’s review, as well as evidence of environmental compliance.

9. Grantee commences project construction work.

10. Grantee completes project and submits final payment request.

11. Agency performs final project inspection and approves final payment.

12. Grantee submits close out documents.

13. The State may perform audits as frequently as annually during the course of the project and for four years after project completion.

Project Withdrawal

If Grantee fails to submit a Project Information Package to Agency or otherwise elects not to use its general fund appropriation, the appropriation will be lost to that Grantee. If 5 grant funds were advanced and Grantee cannot complete an approved project, Grantee must return the advanced funds plus any accrued interest to the State within 30 days.

Changes to Approved Project

A Grantee wishing to change an approved project shall submit the proposed change in writing to Agency for approval. Any change must be consistent with the authorizing legislation.

Time Extensions

A request for a time extension to complete a project and the justification for the request must be submitted to Agency for approval.

6 D. PROJECT INFORMATION PACKAGE CHECKLIST
Before a Grant Agreement can be developed, Grantee must send a completed Project Information Package (“Package”) to Agency. Grantee should keep a complete copy of the Package for future use and reference.

All applicable documents must be submitted to Agency along with the checklist below.

Grantee should check the appropriate box indicating a document is included in the Package or is not applicable to the project.

Required Documentation Page
Included N/A
☐ ☐ Project Information Package Checklist (this page) 6 ☐ ☐ Project Information Form 9
☐ ☐ Project Summary 10
☐ ☐ Authorizing Resolution 11
☐ ☐ Cost Estimates 12, 13
☐ ☐ Project Timeline 14
☐ ☐ Property Data Sheet 15
☐ ☐ Land Tenure/Site Control Documents 7, 16
☐ ☐ Photos of the Project Site 8
☐ ☐ Site Plan 8
☐ ☐ Environmental Compliance Documents 17
☐ ☐ Permit Approval Status 18
☐ ☐ Payee Data Form (Std. 204 for nonprofits; Gov.TIN form for government entities) 19
Additional Documents if Acquisition Project
☐ ☐
If Conservation Easement, provide description of
restrictions, reservations, and funding mechanism for
long term stewardship
8 ☐ ☐ Willing Seller Letter(s) 8
☐ ☐ Appraisal, Preliminary Title Report, if available 8 7 E. PROJECT INFORMATION PACKAGE - WHAT TO SUBMIT

1. Project Information Form - Fill out as follows:

a. Grantee: The Grantee is the organization that takes formal responsibility and assumes liability for the project. All correspondence regarding the administrative process will be sent to the listed day-to-day contact person. b. Project: Provide the project title.
c. District Information: List the district numbers for the Congressional, State Senate, and State Assembly districts in which the project is located. d. CEQA Status: Indicate the environmental compliance status of the project by checking the applicable box.
e. Land Tenure/Site Control : Indicate how the Grantee will satisfy site control by checking the applicable box.
f. Signature: The i ndividual authorized to execute documents on behalf of the Grantee in the Resolution must sign the certification at the bottom of the Project Information Form.

2. Project Summary - Provide a one-page overview of the project.

3. Authorizing Resolution - Provide a signed resolution from the Grantee’s governing board. See Section H for the required Resolution format and content. Resolutions must include all of the assurances indicated in the template. The Resolution should specify the position, not a specific individual, authorized to execute documents.

4. Cost Estimate – Provide a cost estimate reflecting all costs associated with the project. Projects using in-house services must also detail the labor, materials, and equipment costs as separate line items. See Section I for a sample format for development projects and Section J for a sample format for acquisition projects.

5. Project Timeline - Provide the timeline for key milestones and estimated date ranges of accomplishments. See Section K for a sample project timeline.

6. Property Data Sheet - Complete the Property Data Sheet for all property/ parcels to be developed. See Section L for the Property Data Sheet form.

7. Land Tenure/Site Control Documents - Provide copies of documents identifying current ownership information associated with each property/parcel on which the project will take place. Documents may include recorded deeds, tax records, and owner data sheets from county records, title reports or other documents that verify ownership. All documents verifying ownership must have the parcel numbers clearly indicated on the document (handwritten acceptable).

If the project site is owned by a party other than the G rantee: provide a copy of the land tenure agreement (lease, easement, Memorandum of Understanding, etc.) which gives the Grantee legal access to and permission to construct and maintain the project and permit public access to the project , if applicable, for the required number of years. See Section M.
8 If a signed agreement is not fully executed at the time of Package submittal, provide a letter from each landowner identifying the property/parcel(s), and indicating that the owner is willing to enter into a long-term agreement with Grantee to allow long-term access for construction, maintenance, and public use of project, if applicable, on the affected parcel(s). No grant funds can be released until all landowner agreements have been fully executed and submitted to Agency.

8. Photos - Provide a maximum of five (5) labeled color photographs of the project site.

9. Site Plan -Plans should contain details of the property to be developed and show the location of each feature and amenity listed in the project summary and cost estimate.

10. CEQA Compliance - Grantees must demonstrate CEQA compliance, as applicable.

Completed CEQA documents should be provided with the Package. See Section N for information on Environmental Compliance.

11. Permit Approval Status - Indicate the types of permits necessary to complete the project. See Section O for the Permit Approval Status form.

12. Payee Data Record – Nonprofit organizations should complete sections 1-5 of the Std 204 form . Government entities should complete the Government Agency Taxpayer ID Form. See Section P for links to the Std 204 and the Government Agency Taxpayer ID forms.

For Acquisition Projects

13. Conservation Easement – If acquiring a conservation easement, describe the proposed restrictions and reservations and the funding mechanism to support long- term stewardship.

14. Evidence of Willing Seller - Provide a letter from each landowner indicating they are a willing participant in the proposed real property transaction. The letter should clearly identify the parcels owned by each seller and state if grant funds are awarded, the seller is willing to enter into an agreement or negotiation for an agreement for the sale of the real property at a purchase price not to exceed fair market value. If available, include a copy of the fully executed purchase option agreement as well. See Section Q for Willing Seller Letter template.

15. Appraisal – If available.

16. Preliminary Title Report – If available.

9 F. PROJECT INFORMATION FORM
Project Name Estimated Date of Completion: 12/31/2022
The Sacramento LGBTQ Community Center Grant Amount: $1,000,000 Estimated Total Project Cost: $4,300,000
(State grant, other funds, and in -kind)
Grantee Name (with mailing address) County Nearest City/Town City of Sacramento Check one: Sacramento Sacramento
915 I Street, 5th Floor ☐ Nonprofit Project Address (or nearest cross street) Sacramento, CA 95814 ☒ Local Agency 1015 20th Street
☐ State Agency Sacramento, CA 95811
Senate Dist. Assembly Dist. US Congressional Dist.
6 7 6
Grantee’s Representative Authorized in Resolution (Signature required at bottom of this page) Name: Michael Jasso Title: Assistant City Manager
Phone: 916-808-1380 Email: mjasso @cityofsacramento.org Project Manager – Person with day -to-day responsibility for project (if different from authorized representative) Name: Amanda Wallace Title: Development Project Manager Phone: 916-808-5453 Email: [email protected]

Brief Description of Project Latitude Longitude
(Summarize major activities to be funded by this Grant) 30°34’34.37”N 121°28’47.46”W Pay down balance of existing loan to American River
Bank/Bank of Marin (lender)

CEQA/Environmental Requirements
☐ Exempt per CEQA Guidelines § Enter section
Attach filed Notice of Exemption.
☐ CEQA completed
Attach fled Notice of Determination, Negative
Declaration, or Mitigated Negative Declaration
☐ CEQA is not complete
Site Control/Land Tenure (check the box that applies) Attach draft Initial Study with checklists. ☐ Grantee owns the property. ☒ CEQA not triggered Ministerial ☐ Grantee leases the property – Term End: Enter date
☐ Grantee owns an easement on the property.
☐ Grantee has an MOU with the property owner.
☒ Grantee will record deed of trust requiring the property be used for grant purposes
I certify that the information in this Project Information Form, including all attachments, is complete and accurate.

Signed: Enter date
Grantee’s Authorized Representative as shown in Resolution Date Enter name Enter title Designee? ☐ Yes ☐ No

Print Name

Title

(If yes, attach letter of designation
from authorized representative.)
10 11

12 13

14 15

16 17

18 19
. PROJECT SUMMARY
With the Package, submit a one-page summary that provides a descr iption of the proposed project.

The Sacramento LGBT Community Center works to create a region where LGBTQ+ people thrive. In 2019, the City of Sacramento provided a $750,000 grant to assist the Center in securing a commercial mortgage to purchase a new property. The Center purchased the property at 1015 20th Street and embarked on a capital campaign with the goal of paying off its commercial mortgage and renovating the facility to increase service capacity and meet access and functional needs of Sacramento’s LGBTQ+ community. Paying off the mortgage will ensure that the LGBTQ+ community will always have a place to call home in the region and future philanthropic support can be primarily focused on advancing the mission and serving more people. $1 million in the 2021-22 State budget was allocated to the City of Sacramento for the Sacramento LGBT Community Center’s capital project and associated costs. 100% of this funding will be dedicated to pay down the mortgage to fulfill this purpose.

20 H. AUTHORIZING RESOLUTION TEMPLATE
Resolution No.______________________
RESOLUTION OF (Governing Body))

APPROVING THE ACCEPTANCE OF GENERAL FUND GRANT FUNDS FOR ______________________________ (Title of Project)
WHEREAS, the Legislature and Governor of the State of California have approved a grant for the project shown above; and
WHEREAS, the California Natural Resources Agency has been delegated the responsibility for the administration of the grant project, setting up necessary procedures; and WHEREAS, said procedures established by the California Natural Resources Agency require the Grantee to certify by resolution the approval of a Project Information Package before submission of said package to the State; and
WHEREAS, the Grantee will enter into an agreement with the State of California for the above project:

NOW, THEREFORE, BE IT RESOLVED that the _____________________ (Governing Body)

1. Approves the acceptance of a general fund allocation for local assistance for the above project(s); and

2. Certifies that said agency understands the assurances and certification in the Project Information Form; and

3. Certifies that said agency will have sufficient funds to develop, operate and maintain the project consistent with the land tenure requirements of the Grant Agreement ; or will secure the resources to do so; and

4. Certifies that said agency will comply with th e provisions of Section 1771.5 of the California Labor Code.

5. If applicable, certifies that the project will comply with any laws and regulation including, but not limited to, the California Environmental Quality Act (CEQA), legal requirements for building codes, health and safety codes, disabled access laws, environmental laws and, that prior to commencement of construction, all applicable licenses and permits will have been obtained.

6. Certifies that said agency has reviewed and understands the General Provisions contained in the sample Grant Agreement contained in the Procedural Guide; and

7. Appoints the ______________ (designated position, not person occupying position) as agent to conduct all negotiations, execute and submit all documents including, but not limited to the Project Information Form, agreements, payment requests and so on, which may be necessa ry for the completion of the aforementioned project(s).

Approved and adopted the ___ day of _______20_. I, the undersigned, hereby certify that the forgoin g Resolution Number _____ was duly adopted by the ________________ (Governing Body).

Following Roll Call Vote: Ayes: _____
Nos: _____

Absent: _____ ________________________________
Clerk/Secretary for the Governing Board
21 I. SAMPLE COST ESTIMATE FORM FOR DEVELOPMENT PROJECTS All cost elements included should be consistent with the scope, site plan and CEQA documents.

Add and delete project elements as applicable to your project.

Category listing should be detailed and customized to fit the project. Each Funding source, whether In- Kind or cash should have its own column. Specify In- Kind or cash in each column heading. The General Fund Grant and Other Funding Sources shou ld sum to the Total Project Costs column. The cost of project elements funded by the General Fund Grant should not be split between the grant and other funding sources. * All projec t expenditure documentation should be available for audit whether paid with grant funds or other funds. ** Overhead costs are allowable and generally limited to 15% of total direct costs of the grant.

In -service payroll may not include a “billable rate” or adminis trative cost allocation.

Project Elements (EXAMPLES ONLY)
Total
Project
Costs
General
Fund
Grant
Other
Funding
(if applicable)
Other
Funding
(if applicable)

NON-CONSTRUCTION COSTS
Direct Project Management Administration
Staff Time (direct costs only)
Incidental Charges Ineligible
Consultants
Subtotal – Direct Management
Planning, Design & Permitting
Staff Time (direct costs only)
Consultants
Permit Costs
Subtotal Planning, Design & Permitting
CEQA Compliance (if applicable)
Staff Time (direct costs only)
Consultants
Subtotal – CEQA
SUB-TOTAL Non-Construction Costs

CONSTRUCTION COSTS
Component X (Specify)
Component Y (Specify)
Component Z (Specify)
SUBTOTAL Construction Costs
Contingency

PROJECT GRAND TOTAL
22 J. COST ESTIMATE FORM FOR ACQUISITON PROJECTS
(Complete one form for each separate escrow)
Project Title:

Assessor’s Parcel Number(s) Acreage
Indicate
Fee or
Easement
Willing Seller Name and
Address

ACQUISITION COST ESTIMATE

Total Cost*
General
Fund
Program
Grant
Other
Funding
Source
(Name)
Other
Funding
Source
(Name)
Estimated Fair Market Value
Relocation Costs
Preliminary Title Reports, Appraisal
Escrow Fees, Title Insurance, Closing Costs
Surveying (limited to boundary line adjustments)
Direct Costs -Staff and Consultants (limited to
$10,000 per grant)**

State approval of appraisal, transaction
review, etc. (recommend budgeting $10,000)
$10,000
Contingency (not to exceed 10% of grant)
Other (specify)
Grand Total
*All invoices and receipts for project expenditures from all funding sources will be retained and made available for state audit. **Overhead costs are allowable and generally limited to 15% of total direct costs of the grant. In -service payroll may not include a “billable rate” or administrative cost allocation.

Acquisition Schedule* Completion Date
Complete Appraisal
Submit appraisal, purchase docs and title report to State Open escrow & request advance into escrow
Submit instruments of conveyance
Close escrow and submit final closing documents to State Install funding acknowledgement sign
Close-out
*Grantee should submit evidence of progress on the acquisition within 6 months of grant execution.

23 COST ESTIMATE FORM FOR SACRAMENTO LGBTQ COMMUNITY CENTER

Project Title: Sacramento LGBTQ Community Center
Assessor’s Parcel Number Acreage
007-0085-001-00000 0.29

Project Element Total Project Cost Specified Grant
Pay down balance of existing
loan to American River
Bank/Bank of Marin (lender)
$1,000,000 $1,000,000
Grant Total $1,000,000 $1,000,000
24 K. SAMPLE PROJECT TIMELINE
Activity Description Timeline
Preliminary work on the project May 1, 2022
Transmittal of check for mortgage payment
Submit final site design/plans/specifications
Construction period
Submit Project Closeout package with final Payment
Request to State
January 2023

PROJECT TIMELINE FOR LGBTQ COMMUNITY CENTER

Project Schedule* Completion Date
City submits grant packet to CNRA November 2022
City executes grant agreement with CNRA November 2022
City executes grant agreement wit h Sacramento Pride and LGBT Center
November 2022
Sacramento Pride records deed of trust November 2022
City requests $900,000 advance from CNRA December 2022
City transfers $900,000 to Bank of Marin Bancorp February 2023 City reconciles $900,000 advance with CNRA March 2023
Sacramento Pride requests reimbursement for remaining $100,000 March 2023-June 2023 City requests reimbursement from CNRA for remaining $100,000 March 2023-June 2023

25 L. PROPERTY DATA SHEET
Complete the Property Data Sheet listing each parcel included in the proposed project, as well as the owner(s) of each parcel. Indicate and attach all required documents* including any clarifying comments below. Attach additional sheets if necessary.

No Owner Name
Assessor Parcel
Number(s) Acreage
Indicate type of
ownership. For
acquisitions,
indicate type of
purchase.

For all parcels, indicate
*document used to
d emo nstrate o wnership
and attach a copy of
each document -clearly
labeled with the APN-to
this document
If parcel(s) not owned by Grantee (s)
indicate *document verifying long-term
Permission to Develop and maintain
and attach
Entity to
perform O&M
# of years O&M to be performed
Fee Simple
Easement
Other
(describe)
Proof of Ownership (tax
bill, grant deed, etc.)
O&M
Agreement
Lease
JPA
Letter from
Owner
Other
(describe)
1 Sacramento Pride
Properties Inc.
007-0085-001-
00000 0.29 X Grant Deed
Grantee will
record deed
of trust
requiring the
property
owner to use
the property
for grant
purposes.”
Sacramento
Pride
Properties
Inc.
10 2
3 4
Comments:

Total Number of Parcels: 1 Total Number of Acres: 0.29 26 27

28 M. LAND TENURE/SITE CONTROL REQUIREMENTS
The State recognizes that specific activities on the project property may change over time; however, all uses on the property must remain consistent with the authorizing legislation and in accordance with the following requirements:

Acquisition Projects

The Grantee or the Grantee’s successor in interest shall hold, in perpetuity, the real property only for the purpose for which the grant was made and make no other use or sale or other disposition of the property without the written permission of the State.

Development Projects

Grantee shall maintain and operate the project developed pursuant to this grant for a period of:

• At least 10 years for Grants up to $100,000
• At least 20 years for Grants up to $1 million
• At least 25 years for Grants over $1 million

• Grantee shall not use or allow the use of any portion of the real property for mitigation (i.e., to compensate for adverse changes to the environment elsewhere).

• Grantee shall not use or allow the use of any portion of the real property as security for any debt.

• With the approval of the State, Grantee or Grantee’s successor in interest in the property may enter into an agreement with another party to maintain and operate the property in accordance with this grant program. At a minimum, the agreement must do the following:
o Clearly spell out the roles of each party in detail.
o Be signed by both parties signifying their acceptance. o Not terminate prior to the length of land tenure/ site control required by the grant agreement (only agreements that allow early termination for cause or by mutual consent will be acceptable).
o Include language that Grantee will resume responsibility for ongoing operation and maintenance in the event of cancellation.

• Grantee may be excused from its obligations for operation and maintenance of the project site only upon the written approval of the State for good cause. Good cause includes, but is not limited to, natural disasters that destroy the project improvements and render the project obsolete or impracticable to rebuild.

29 SITE PHOTOS

Front of building Conference Room

Lounge Staircase and elevator

30 N. ENVIRONMENTAL COMPLIANCE
Prior to approval and distribution of grant funds for construction/implementation, every proposed project shall comply with the California Environmental Quality Act, Division 13 (commencing with Section 21000; 14 California Code of Regulations section 15000 et seq. [“CEQA”]).

The State of California, acting through its administering agencies and departments, will typically act as a responsible agency for the purposes of CEQA. Therefore, prior to the State approving funding for a proposed project, one of the following must be submitted:
a. The Notice of Exemption filed with the County Clerk and State Clearinghouse (as applicable) if the proposed project is categorically or statutorily exempt, with the appropriate Public Resources Code section citation to the exemption(s) being relied upon by the lead agency.
b. The Negative Declaration or Mitigated Negative Declaration adopted by the lead agency and Initial Study, including a copy of the Environmental Checklist Form located in Appendix G of the CEQA Guidelines and the Notice of Determination filed with the County and with the State Clearinghouse. If the lead agency has adopted a Mitigated Negative Declaration, the grantee must also provide the adopted mitigation monitoring and reporting program*. c. The Final Environmental Impact Report certified and adopted by the lead agency with Initial Study, including a copy of the Environmental Checklist Form located in Appendix G of the CEQA Guidelines, the adopted mitigation monitoring and reporting program, and the Notice of Determination filed with the County and State Clearinghouse. Please include any State Clearinghouse Responses received by the grantee.
* For b and c, include documentation the State of California Department of Fish and Wildlife CEQA fee was paid or is not applicable.
d. Projects that tier from a Programmatic, Master, or other Environmental Impact Report shall include a copy of any subsequent Initial Study for the proposed project together with a copy of any supplementary environmental documentation adopted by the lead agency, including, if applicable, any required findings pursuant to Public Resources Code section 21157.1, subdivision (c), and the Notice of Determination, filed with the County Clerk and with the State Clearinghouse, as applicable.

Pursuant to Section 75102 of the Public Resources Code 75102, before the adoption of a Negative Declaration or Environmental Impact Report, the lead Agency shall notify the proposed action to a California Native American tribe, which is on the contact list maintained by the Native Heritage Commission, if that tribe has traditional lands located within the area of the proposed project.

31 O. PROJECT PERMIT/APPROVAL STATUS
Indicate the status of all federal, state, and local permits required for the project. Describe any potential delays due to permitting (indicate specific permits). If acquiring a long- term encroachment permit, submit evidence the entity with jurisdiction is aware of the project and is willing to work with Grantee to issue the permit.

This l ist is not all inclusive. It is Grantee’s responsibility to identify and obtain applicable permits.

Permitting Agency Type of Requirement
Required
Applied
Acquired
Date
Expected
State Agencies:

California Department of Fish
and Wildlife Lake or Streambed Alteration Agreement (Section 1600) California Department of Fish
and Wildlife
Incidental Take Permit or Consistency Determination (CESA) (California Endangered Species Act)
Department of Transportation Encroachment Permit
Coastal Commission Coastal Development Permit
Coastal Commission Letter of Consistency
Regional Water Quality Control
Board 401 Water Quality Certification or Waste Discharge Requirement State Water Resources Control
Board Water Rights Permit
State Water Resources Control
Board General Industrial Storm Water Permit
State Lands Commission Permit (if using State owned property ) State Office of Historic
Preservation
Section 106 Consultation with State Historic Preservation Officer (National Historic Preservation Act of 1986)
Federal Agencies
U.S. Fish and Wildlife Service
(USFWS)
Section 7 Consultation, Biological Opinion or Section 10 Permit (Endangered Species Act)

U.S. Army Corps of Enginee r s
(ACOE) Section 404 Permit (Clean Water Act)
U.S. Army Corps of Engineers Section 10 Permit (Rivers & Harbors Act of 1899) U.S. Coast Guard / U.S. Army
Corps of Engineers Section 9 Permit (Rivers & Harbors Act of 1899) U.S. National Resources
Conservation Service
Section 106 Consultation (National Historic Preservation Act of 1986)

National Marine Fisheries
Service (NMFS)
Section 7 consultation if federal nexus see ACOE, or Section 10 Permit
Local and Regional Planning Agencies
City/County Grading Permit
City/County Environmental Health Department
City/County Model Water Efficient Landscape Ordinance – Landscape Documentation Package
Central Valley Flood Protection
Board
Permission to Encroach on Waterways within Designat e d Floodways
San Francisco Bay Conserva t ion
and Development Commissio n

Any relevant permit
Tahoe Regional Planning
Agency Any relevant permit
Local Resource Conservation
District Consultation
Flood Control Districts Floodway & Hydrological Analysis Others (e.g.,CalRecycle, State
Contractors Board, etc.):

None No permits are
applicable
32 P. PAYEE DATA RECORD/GOVERNMENT AGENCY TAXPAYER ID FORM Non-profit Grantees must provide a completed and signed STD 204 Payee Data Record form.

The Payee Data Record is required when receiving payment from the State of California. A fillable form STD 204 can be found at https://resources.ca.gov/-/media/CNRA- Website/Files/grants/AdminForms/std204.pdf.

Grantees that are government entities must complete the Government Agency Taxpayer ID Form. A fillable Government Agency Taxpayer ID Form can be found at https://resources.ca.gov/-/media/CNRA-Website/Files/grants/AdminForms/Govt_TIN_Form.pdf .

33 34

35 Q. WILLING SELLER LETTER (ACQUISITIONS ONLY) N/A
All acquisition projects must provide a willing seller letter from each person on the title of project parcels. The letter must include the following information and be signed and dated by the legal owner(s) of each parcel to be acquired.

(Template -- Willing Seller Letter)
Date:

To: California Natural Resources Agency

From: Name(s) of Legal Owner (Trust, etc.)
Address of Legal Owner(s)

Re: Parcel number(s):

County:

Property Address:

To Whom It May Concern:

This letter is provided to confirm that ( name of owner(s), trust, etc .), owner of the above referenced property, is a willing participant in the proposed real property transaction and willing to enter into negotiations for the sale of the real property for a purchase price not to exceed fair market value.

Acknowledged:

_____________________________ _______________________
Signature of landowner (trustee, etc.) Date signed

_____________________________ _______________________
Signature of landowner (trustee, etc.) Date signed

_____________________________ _______________________
Signature of landowner (trustee, etc.) Date signed

36 R. PAYMENT REQUEST INSTRUCTIONS
Before Submitting
 Check the Grant Agreement to confirm that any funding requirements outlined in the special provisions section have been fulfilled (e.g. agreements, CEQA compliance, signage, DGS review, etc.)
 Check that all costs are allowable.
a. Costs must be incurred within the project performance period outlined on the Grant Agreement cover page and/or subsequent amendments and must align with the cost estimate.
b. Direct project-related expenses and indirect expenses that can be directly tied to the grant funded project are eligible for reimbursement.
c. Overhead expenses are the non-project specific expenses of doing business that are not directly related to the implementation of the project to be funded (for example, rent, computers, telephones, office supplies, internet access, copy machines, electricity).

Certain types of overhead are not allowed including, food and beverage, fundraising, lobbying and entertainment. Any expense that is billed as a direct expense may NOT be included in overhead.

Grantees that wish to charge overhead must be able to document the appropriateness of the charges. One typical method for documentation is to have a Cost Allocation Plan.

Other methods may also be adequate, but it is the grantees responsibility to determine this based on Generally Accepted Accounting Principles. It is recommended that grantees develop an appropriate method for calculating their overhead rate and determine what overhead expenses may be allocated to the grant, subject to the Agency’s approval and the 15% limit. It is the responsibility of the grantee to maintain appropriate records for all overhead expenses and to be able to provide those records in the event of an audit.

Overhead should be included as a line item in the approved project budget and generally limited to a maximum of 15% of total direct expenses of a grant.

What to Include
 Payment Request Form filled out with original signature of authorized agent.  Project Expenditure Form , Grantee Labor Cost Form, and Equipment C ost Form (as applicable). Descriptions should clearly tie to the line items on the cost estimate, as well as the backup documentation.
 Proof of time worked/services rendered for each item listed on the above forms a. For contracted labor or materials, include copies of invoices or receipts. • If an invoice is to be only partially reimbursed with grant funds, the portion allocated to the grant should be clearly marked.
b. For mileage include a log kept by employees documenting date, hours and destinations related to the grant project. Provide documentation of policy to support rate used. c. For equipment, include the schedule showing the rate as well as a log showing the days and hours the equipment was used for this project and by whom. d. For in house labor, include documentation of hours worked on the project and hourly rate. 37 • Send timesheets detailing the days and number of hours each employee who worked on the project.
• Fill out the Employee Compensation Chart to demonstrate the rate being charged. • With fi rst request or when rates change, submit copies of pay stubs that show the employee’s pay rate or salary (may redact personal information). • Only salary plus benefits are eligible. No indirect rates or overhead costs may be folded into the hourly rate. No billable rates may be used.
 Proof of payment showing that payment was made for each cost. Examples include:
a. Copy of both sides of a cancelled check (and breakdown if check is for multiple invoices) b. Copy of bank statement with cleared checks and/or E lectronic Fund Transfer’s (EFT) highlighted
c. Invoice stamped “Paid” by the vendor/contractor
d. Pre-paid card Statement showing credit remaining after particular project charge e.g., pre- paid photo copier card
e. Credit card Statement showing payment made accompanied with original credit card receipt listing specific charges. Must also include proof that the credit card was paid off. f. For purchase of real property: copy of Final Buyer’s Closing Statement g. For grantee personnel services one of the following:
• Chief Financial Officer’s signature on the certification on the Grantee Labor Cost Form • Payroll stubs or payroll service printout for each pay period • Signed acknowledgement from employees regarding receipt of paychecks for a specific time period

Advances – Upon request, advances are allow ed to assist with cash flow . The amount of the advance is determined based on need. Once an advance is reconciled, Grantee may seek another. Contact the project grants administrator to request an advance and protocol for administering.

FOR ADVANCE TO ESCROW FOR ACQUISITION PROJECTS
To request money to be advanced to escrow, submit the following:
 Payment Request Form for the amount of the grant budgeted to Fair Market Value of the property
 Evidence of Willing Seller
 Letter requesting funds be deposited to escrow on Grantee’s letterhead containing the following:
a. Name and address of Grantee
b. Number of Grant Agreement
c. Dollar amount of disbursement requested
d. Name, address, and telephone number of the title company or escrow holder, and the escrow account number to which the grant funds will be disbursed e. A statement by the Grantee that all funds needed for completion of acquisition of the real property (or conservation easement) have been secured and have been or will be deposited into escrow at or about the same date as the requested grant funds f. Anticipated close of escrow date
 Payee Data Record for the escrow company

38 Final Payments - Final retention will not be released until all closeout documents (in addition to regular payment request documents if applicable) have been received. This includes:
a. Summary of Expenditures from all Project Funding Sources b. Certification of Completion Form
c. Notice of Completion (if applicable)
d. Recorded MOUGA/Deed Restriction (if applicable)

Helpful Hints
 Organize documentation in an easy to follow format (i.e. chronologically) with related information together and relevant information marked. Include any necessary explanations or notes to clarify certain documentation.
 Bill for the full amount and Agency will take out the retention of 10% for reim bursements.

Retention will be released at closeout.
 Ensure numbers match (e.g. check numbers, amounts on forms and back up documentation, etc.) and that they are accurately calculated. Everything must add up to the penny.

All payment forms and these instructions can be found on our website here:
https://resources.ca.gov/grants/Grant-Program-Resources

Contact your Grant Administrator for further clarification or questions.

39 S. STATE AUDIT AND ACCOUNTING REQUIREMENTS

Contact your assigned Grant Administrator for questions a bout the following requirements:

Accounting Requirements
Grantees must use accounting practices that:
• Provide accounting data that clearly records costs incurred on the project and accurately reflects fiscal transactions, with the necessary controls and safeguards.

• Provides a good audit trail, including original source documents such as purchase orders, receipts, progress payments, invoices, employee paystubs and timecards , evidence of payment, etc.

• Provides accounting data so the total cost of each individual project can be readily determined.

Accounting Rules for Employee Services (force account labor) Grantees must follow these accounting practices for employee services:
• Maintain time and attendance records as charges are incurred, identifying the employee through a name or other tracking system, and that employee’s actual time spent on the project.
• Time estimates for work performed on the project are not acceptable. • Time sheets that do not identify the specific employee’s time spent on the project are not acceptable.
• Costs of the salaries and wages must be calculated according to the grantee’s wage and salary scales, and may include employer paid benefit costs such as “workers’ compensation.” • Overtime costs may be allowed under the grantee’s established policy, provided that the regular work time was devoted to the same project.

State Audit
• All projects are subject to an audit by the State of California, Department of Finance within three (3) years following the final payment of grant funds. If the project is selected for an audit, the grantee will be contacted in advance. The audit shall include all books, papers, accounts, documents, canceled checks or other records of the grantee, as they relate to the project for which the funds were granted.
• The Grantee must retain the project records for a period of three (3) years and one (1) year following an audit. All documents must be readily available, and an employee with knowledge of the project must be available to assist the auditor. The Grantee must provide a copy of any document, paper, record, or the like, requested by the auditor.

40 T. DOCUMENTS REQUIRED FOR THE DEPARTMENT OF FINANCE AUDIT

Please have the following doc uments, files, records, and other resources available for the Department of Finance during their audit of the grant.

Internal Controls:

1. Grantee's organization charts.

2. Written internal procedures and flowcharts for the following procedures:
a. Grantee's receipts and deposits
b. Grantee's disbursements
c. Grantee's invoice preparation

3. Audit reports covering the Grantee's internal control structure and/or expenditures within the last two years.

Contracts:

1. Original contract between the Grantee and the State, including any amendments.

2. All contract documents between the Grantee and any subcontractors.

3. Listing of all active or completed contracts funded by Proposition 12, 13, 40, and 50.

Budgets:

1. Budget modification documents.

Invoices:

1. Invoices from the Grantee to the State for payments made under the grant.

2. Invoices from the subcontractors to the Grantee for payments made under the grant.

3. All supporting documentation associated with the above invoices.

Cash Documents:

1. Receipts showing payments received from the State.

2. Deposit slips showing deposit of the payments received from the State.

3. Canceled checks or disbursement documents showing payments made to vendors for contract disbursements.

4. Bank statements showing the deposit of the receipts and interest earned on any monies held by the Grantee.

Accounting Records:

1. Ledgers showing entries for cash receipts and cash disbursements.

Travel/Per Diem:

1. Grantee travel policies.

2. Travel claims for travel costs charged to the contract organized by the Grantee Invoice on which the travel was charged.

3. Mileage logs, if mileage for grantee employees claimed and paid with Grant funds.

Project Files:

1. All supporting documentation maintained in the project files.

41 Q. SAMPLE GRANT AGREEMENT

STATE OF CALIFORNIA NATURAL RESOURCES AGENCY

GRANT AGREEMENT
Grantee Name: Insert Here

Project Title: Insert Here

Agreement Number: XXXXXX-0

Authority: Budget Act of 2021 (Chapters 21, 69, and 240, Statutes of 2021)

Program: General Fund Specified Grant Projects

PROJECT DESCRIPTION

Brief Project Description

A detailed project scope and activities, project schedule and project budget are described and attached hereto as Exhibit A.

Grant Funds are to be used to support capital asset projects in accordance with the provisions contained in the Procedural Guide for General Fund Specified Grant Projects and this Agreement.

TERMS AND CONDITIONS OF GRANT

Special Provisions

Special Provisions, if applicable. EXAMPLES ONLY: (see other Sample Special Provisions in B&G/Procedures– Various/Preparation of Grant Agreement)

1. The Grantee may be required to record Deed Restrictions, incorporating by reference this Grant Agreement and giving public notice that the Grantee received funds under this Agreement in order to assist Grantee in acquiring or developing the real property and that, in consideration for the receipt of the Grant Funds, the Grantee has agreed to the terms of this Agreement.

2. As a condition precedent to the State’s obligation to deposit funds into escrow or to provide reimbursement related to the Acquisition, the Grantee shall have obtained approval of the language contained in the grant deed by the Natural Resources Agency. Said deed shall include the State’s required protections, restrictions of use and subsequent transfer requirements.

3. The State Department of General Services (DGS) may review and approve in writing all documents pertaining to the Grantee’s Acquisition of real property, including any preliminary title reports, agreements for purchase and sale, escrow instructions and the instruments of conveyance prior to the release of any Grant Funds. Such review and approval by the State shall be timely and shall not be unreasonably withheld.

4. DGS shall review and approve in writing the appraisal of the real property.

5. The Grantee agrees to pay DGS directly the amount invoiced by DGS for services rendered for its review of the appraisal, transaction review, or other related activities as described above. Should the Grantee fail to pay DGS, the State is authorized to pay DGS by directly transferring from the Grant Funds the amount invoiced by DGS. The State will notify the Grantee at the time of the transfer and provide a copy of the appraisal review letter and invoice upon receipt.

42 6. Insert if more than one escrow is anticipated: The Grantee agrees that all parcels to be acquired by this project will have concurrent escrows.

7. Insert if the Grantee is a nonprofit: If the Grantee is a nonprofit organization and ceases to exist, all of its rights, title and interest in the real property shall vest in the State of California. The State may, at its discretion, identify an appropriate public or private entity to accept the right, title and interest in the real property in lieu of the State.

8. I f Grantee is a federally recognized Indian Tribe replace Section F below with the following: Grantee’s Limited Waiver of Sovereign Immunity and Hold Harmless

a. The Parties acknowledge that Grantee is a federally recognized Indian tribe and, as such, possesses sovereign immunity from suit. Nothing in this Grant Agreement is or shall be deemed to be a waiver of Grantee’s sovereign immunity from suit, which immunity is expressly asserted, except for the limited waiver set forth in this section.

b. Limited Waiver of Sovereign Immunity and hold harmless. Notwithstanding any other provision in this Agreement (including, without limitation, any provision of any Exhibit incorporated in this Agreement by reference) to the contrary, nothing in this Agreement shall be deemed to be a general waiver of Grantee’s sovereign immunity from suit, which immunity is expressly asserted. Provided, however, that Grantee hereby expressly, unequivocally, and irrevocably provides a limited waiver of sovereign immunity from suit to allow the Natural Resources Agency to exercise all of its rights under the terms of this Agreement, and Grantee consents to suit in any court of the State of California for any claim to interpret or to enforce this Agreement. This shall include the right to contribution for loss of damage to persons or property arising from, growing out of or in any way connected with or incident to this Agreement, except claims arising from the gross negligence of State, its officers, agents and employees.

c. Grantee shall indemnify, hold harmless State, its officers, agents and employees in perpetuity against any and all claims, demands, damages, costs, expenses or liability costs arising out of the Project, which claims, demands or causes of action arise under Government Code Section 895.2 or otherwise, including but not limited to items to which the Grantee has certified, except for liability arising out of the gross negligence of State, its officers, agents or employees. Grantee acknowledges that it is solely responsible for compliance with items to which it has certified. Under this indemnification provision, Grantee shall not be responsible for defending State in court but shall reimburse for actual invoiced costs associated with the defense.

Grantee and State agree that in the event of judgment entered against the State and Grantee because of the gross negligence of the State and Grantee, their officers, agents or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment.

9. If Planned transfer of property: The State is aware of and approves a subsequent conveyance of the property to the Long-Term Landowner Name. Such approval is contingent, however, upon the Long-Term Landowner Name’s written commitment to:

a. Accept title to the property, and

b. Provide for the long-term operations and maintenance of the property for the uses intended by this grant program as specified in the grant agreement.

10. As conditions precedent to the State’s obligation to make any construction or acquisition funding available pursuant to this Agreement, Grantee shall first provide evidence of compliance with CEQA by XX/XX/20XX.

11. Insert if nonprofit: If the Grantee is a nonprofit organization and ceases to exist, all of its rights, title and interest in the real property shall vest in the State of California. The State may, at its discretion, identify an appropriate public or private entity to accept the right, title, and interest in the real property in lieu of the State.

12. Insert if grantee has not yet obtained land tenure/site control: As conditions precedent to the State’s obligation to make any funding available pursuant to this Agreement, Grantee shall first provide evidence of adequate land tenure and evidence that the project will be operated and maintained for a minimum of __ years s atisfactory to the State for all land to be improved under this Agreement. 43 General Provisions

A. Definitions

1. The term "Act" means Budget Act of 2021 (Chapters 21, 69, and 240, Statutes of 2021).

2. The term “Acquisition” means obtaining a fee interest or any other interest, including easements, leases, and development rights.

3. The term “Agreement” means this Grant Agreement.

4. The term “Application” means the Project Information Package and any applicable materials supplied by grantee to the State pursuant to the Application Guidelines.

5. The term “Application Guidelines” means the Procedural Guide for General Fund Specified Grant Projects.

6. The term “Development” means improvement, rehabilitation, restoration, enhancement, preservation, protection and interpretation or other similar activities.

7. The term “Fair Market Value” means the value placed upon the property as supported by an appraisal that has been reviewed and approved by the California Department of General Services (DGS).

8. The term “Grant” or “Grant Funds” means the money provided by the State to the Grantee in this Agreement.

9. The term “Grant Agreement” means a contractual arrangement between the State and Grantee specifying the payment of funds by the State for the performance of specific project objectives within a specific project performance period by the Grantee.

10. The term "Grantee" means an entity who has a signed agreement for grant funds.

11. The term “Interpretation” means visitor-serving amenities that communicate the significance and value of natural, historical, and cultural resources in a manner that increases the understanding and enjoyment of these resources, or other similar activities.

12. The term “Other Sources of Funds” means cash or in-kind contributions that are required or used to complete the project beyond the grant funds provided by this Agreement.

13. The term “Payment Request Form” means Form RA212.

14. The term "Project" means the acquisition or development activity described in the Application as modified by Exhibit A to be accomplished with grant funds.

15. The term “Project Budget” means the State approved cost estimate included as Exhibit A to this Agreement.

16. The term “Project Scope” means the description or activity for work to be accomplished by the project.

17. The term “Public Agency” means any State of California department or agency, a county, city, public district, or public agency formed under California law.

18. The term "State" means the Secretary for California Natural Resources or his/her representatives, or other political subdivision of the State.

B. Project Execution

1. Subject to the availability of funds in the Act, the State hereby grants to the Grantee a sum of money (Grant Funds) not to exceed the amount stated on the signature page in consideration of and on condition that the 44 sum be expended in carrying out the purposes as set forth in the description of project in this Agreement and its attachments and under the Terms and Conditions set forth in this Agreement.

2. Grantee shall furnish any and all additional funds that may be necessary to complete the project.

3. Grantee shall complete the project in accordance with the Project Performance Period set forth on the signature page, unless an extension has been formally granted by the State and under the Terms and Conditions of this Agreement. Extensions may be requested in advance and will be considered by State, at its sole discretion, in the event of circumstances beyond the control of the Grantee, but in no event beyond March 1, 2026.

4. Grantee shall at all times ensure that project complies with the California Environmental Quality Act (CEQA) (Public Resources Code, Division 13, commencing with section 21000, et. seq., Cal Code Regs tit. 14, section 15000 et. seq.) and all other environmental laws, including but not limited to obtaining all necessary permits. Grant funds will not be disbursed before the close of the period for legal challenge under CEQA.

Grant funds for planning and document preparation may be available sooner if included in the grant project scope (Exhibit A) and approved by the State. CEQA compliance shall be completed within one (1) year from the Grant Agreement start date, unless an extension is granted by the State.

Changes to the scope resulting from CEQA compliance are permitted provided the State determines that the project continues to meet all objectives of the General Fund Specified Grant Project and is consistent with the intent cited in the original Application.

If a grantee's project is disapproved on grounds related to the California Natural Resource Agency's CEQA determination, the grantee shall have the option of either: (1) reimbursing the Natural Resources Agency for all state- reimbursed preliminary costs (e.g., planning, design, etc.), or (2) relinquishing any planning/design documents, including all copies, reproductions, and variations resulting from said funding, without a license to use or otherwise retain in any form.

5. Projects must comply with any applicable laws pertaining to prevailing wage and labor compliance.

6. Grantee certifies that the project does and will continue to comply with all current laws and regulations which apply to the project, including, but not limited to, legal requirements for construction contracts, building codes, environmental laws, health and safety codes, and disabled access laws. Grantee certifies that, prior to commencement of construction; all applicable permits and licenses (e.g., state contractor’s license) will have been obtained.

7. Grantee shall provide access by the State upon 24-hours’ notice to determine if project work is in accordance with the approved project scope, including a final inspection upon project completion.

8. Grantee agrees to comply with all applicable state and local laws or ordinances that apply to relocation and real property acquisition by Public Agencies .

9. Lands acquired with Grant Funds from this Agreement shall be acquired from a willing seller of the land at a price not to exceed Fair Market Value. Any acquisition of Project lands by Grantee following award shall not involve eminent domain proceedings or threat of eminent domain proceedings.

10. Prior to the commencement of any work, Grantee agrees to submit in writing to the State for prior approval any deviation from the original project scope per Exhibit A and the Application. Changes in project scope must continue to meet the need cited in the original Application or they will not be approved. Any modification or alteration in the project as set forth in the Application on file with the State must be submitted to the State for approval. Any modification or alteration in the project must also comply with all current laws and regulations, including but not limited to CEQA.

11. Grantee shall provide for public access and/or educational features where feasible.

12. Grantee must have (1) fee title, (2) leasehold, or (3) other interest to project lands and demonstrate to the satisfaction of the State that the proposed project will provide public benefits that are commensurate with the type and duration of the interest in land.
45 13. Grantee shall promptly provide photographs of the site during and after implementation of project at the request of the State.

C. Project Costs

1. Any Grant Funds provided to Grantee under this Agreement for Acquisition of real property will be disbursed for eligible costs as follows, but shall not exceed in any event the amount set forth on the signature page of this Agreement:

a. The State approved purchase price, together with the State approved costs of Acquisition, within sixty (60) days of close of escrow. All disbursements are subject to up to ten percent (10%) withhold pending Project completion, the final close-out site visit by the State, completion of the conditions described in Sections 3, D.6 and D.7 below and all Special Conditions set forth in this Agreement.

b. Costs of obtaining approval of the purchase price and transaction review from the DGS. The amount disbursed by the State in any event shall not exceed the amount set forth on the signature page of this Agreement. The remainder of the Grant Funds, if any, shall be available on a reimbursable basis.

2. Requests for advance payment of Grant Funds into escrow must be submitted via a completed Payment Request Form and be accompanied by a letter requesting funds be deposited to escrow on the Grantee’s letterhead, containing all of the following:

a. Name and address of Grantee.

b. Number of Agreement.

c. Dollar amount of disbursement requested.

d. Name, address and telephone number of the title company or escrow holder, and the escrow account number to which the Grant Funds will be disbursed.

e. A statement by Grantee that all funds (exclusive of the Grant Funds to be provided under this Agreement) needed for completion of Acquisition of the real property have been secured and have been or will be deposited to escrow at or about the same date as the requested Grant Funds. In making this statement, Grantee shall be entitled to reasonably rely on the representations of the transferor of the real property.

f. Anticipated close of escrow date.

The letter shall be accompanied by a Payee Data Record (Form 204) completed for and by the escrow company.

3. Requests for payment of Grant Funds on a reimbursable basis for Acquisitions shall include all of the following:

a. Complete Payment Request Form.

b. Buyer’s closing statement.

c. Copies of recorded Memoranda of Unrecorded Grant Agreement/Deed Restrictions.

d. Policy of title insurance.

e. Project Certification Form (if the Project is complete and payment in full is requested).

f. Evidence of compliance with signage requirement.

g. Summary report of final total Project expenditures.

46 4. Grant funds provided to Grantee under this Agreement for Development will be disbursed for eligible costs, on a reimbursement basis, as follows, but shall not exceed in any event the amount set forth on the signature page of this Agreement:

a. Approved direct management costs or construction and development costs. Up to ten percent (10%) of the reimbursement amount will be held back and issued as a final payment upon completion of the project.

b. Remaining Grant Funds shall be paid up to the total amount of the Grant Funds or the actual Project cost, whichever is less, upon completion of the Project, receipt of a detailed summary of Project costs from the Grantee found to be satisfactory by the State, and the satisfactory completion of a site inspection by the State.

c. Advance payments may be made at the discretion of the State.

d. Grantee agrees to use any Grant Funds advanced by the State under the terms of this Agreement solely for the Project herein described.

e. Overhead costs are generally limited to a maximum of 15% of total direct costs.

5. Payment Documentation:

a. All payment requests must be submitted using a completed Payment Request Form. This form must be accompanied by an itemized list of all expenditures that clearly documents the check numbers, dates, recipients, line-item description as described in the project budget approved by the State and amounts.

Each payment request must also include proof of payment such as receipts, paid invoices, canceled checks or other forms of documentation demonstrating payment has been made.

b. Any payment request that is submitted without the required itemization and documentation will not be authorized. If the payment request package is incomplete, inadequate or inaccurate, the State will inform the Grantee and hold the payment request until all required information is received or corrected. Any penalties imposed on the Grantee by a contractor, or other consequence, because of delays in payment will be paid by the Grantee and is not reimbursable under this Agreement.

6. Grant funds in this award have a limited period in which they must be expended. Grantee expenditures funded by the State must occur within the time frame of the Project Performance Period as indicated in this Agreement.

7. The State reserves the right to request reimbursement of any funds spent on the project, even funds deemed eligible costs, if the project is not completed in accordance with the Grant Agreement and the guidelines.

8. Except as otherwise provided herein, the Grantee shall expend grant funds in the manner described in the Exhibit A approved by the State. The total dollars of a category in the project budget may be increased by up to ten percent (10%) through a reallocation of funds from another category, without approval by the State.

However, the Grantee shall notify the State in writing when any such reallocation is made and shall identify both the item(s) being increased and those being decreased. Any cumulative increase or decrease of more than ten percent (10%) from the original budget in the amount of a category must be approved by the State. In any event, the total amount of the grant funds may not be increased, nor may any adjustments exceed the limits for management costs as described in the Application Guidelines.

D. Project Administration

1. Grantee shall promptly provide project reports and/or photographs upon request by the State. In any event Grantee shall provide the State a report showing total final project expenditures with the final payment request and required closing documents.

2. Grantee shall make property and facilities acquired or developed pursuant to this Agreement available for inspection upon request by the State.

3. Grantee shall use any income earned by the Grantee from use of the project to further project purposes, or, if approved by the State, for related purposes within the jurisdiction. 47 4. If Grant Funds are advanced, the Grantee shall place these Funds in a separate interest-bearing account, setting up and identifying such account prior to the advance. Interest earned on Grant Funds shall be used on the Project, as approved by the State. Any overpayment of Grant Funds in excess of final project costs shall be returned to the State within sixty (60) days of completion of the Project or the end of the Project performance period as shown on the signature page, whichever is earlier.

5. Grantee shall submit all documentation for project completion, including a notice of completion as applicable and final reimbursement within ninety (90) days of project completion, but in no event any later than March 1, 2026.

6. Final payment is contingent upon State verification that project is consistent with project scope as described in Exhibit A, together with any State approved amendments.

7. This Agreement may be amended by mutual agreement in writing between Grantee and State. Any request by the Grantee for amendments must be in writing stating the amendment request and reason for the request.

The Grantee shall make requests in a timely manner and in no event less than sixty (60) days before the effective date of the proposed amendment.

8. Grantee must report to the State all sources of other funds for the project.

E. Project Termination

1. The State reserves the right to terminate a Grant Agreement for any reason at any time. There are no vested rights or entitlements to funding that a Grantee can or should rely upon, and once a notice of termination is provided to the Grantee, only authorized and eligible work prior to that notification of termination will be paid by the State.

2. Prior to the completion of project construction, either party may terminate this Agreement by providing the other party with thirty (30) days’ written notice of such termination. The State may also terminate this Grant Agreement for any reason at any time if it learns of or otherwise discovers that there is a violation of any state or federal law or policy by Grantee which affects performance of this or any other grant agreement or contract entered into with the State.

3. If the State terminates without cause the Agreement prior to the end of the Project Performance Period, the Grantee shall take all reasonable measures to prevent further costs to the State under this Agreement. The State shall be responsible for any reasonable and non-cancelable obligations incurred by the Grantee in the performance of the Agreement prior to the date of the notice to terminate, but only up to the undisbursed balance of funding authorized in this Agreement.

4. If the Grantee fails to complete the project in accordance with this Agreement, or fails to fulfill any other obligations of this Agreement prior to the termination date, the Grantee shall be liable for immediate rep ayment to the State of all amounts disbursed by the State under this Agreement, plus accrued interest and any further costs related to the project. The State may, at its sole discretion, consider extenuating circumstances and not require repayment for work partially completed provided that the State determines it is in the State’s best interest to do so. This paragraph shall not be deemed to limit any other remedies available to the State for breach of this Agreement.

5. Failure by the Grantee to comply with the terms of this Agreement or any other agreement under the Act may be cause for suspension of all obligations of the State hereunder.

6. Failure of the Grantee to comply with the terms of this Agreement shall not be cause for suspending all obligations of the State hereunder if, in the judgment of the State, such failure was due to no fault of the Grantee. At the discretion of the State, any amount required to settle at minimum cost any irrevocable obligations properly incurred shall be eligible for reimbursement under this Agreement.

7. Because the benefit to be derived by the State, from the full compliance by the Grantee with the terms of this Agreement, is the for the purposes as stated in the Application for the people of the State of California, and because such benefit exceeds to an immeasurable and unascertainable extent the amount of money 48 furnished by the State by way of grant funds under the provisions of this Agreement, the Grantee agrees that payment by the Grantee to the State of an amount equal to the amount of the grant funds disbursed under this Agreement by the State would be inadequate compensation to the State for any breach by the Grantee of this Agreement. The Grantee further agrees therefore, that the appropriate remedy in the event of a breach by the Grantee of this Agreement shall be the specific performance of this Agreement, unless otherwise agreed to by the State.

F. Hold Harmless

1. Grantee shall waive all claims and recourses against the State, including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this Agreement, except claims arising from the gross negligence of State, its officers, agents and employees.

2. Grantee shall indemnify, hold harmless and defend State, its officers, agents and employees in perpetuity against any and all claims, demands, damages, costs, expenses or liability costs arising out of the project, including development, construction, operation or maintenance of the property described in the project description which claims, demands or causes of action arise under Government Code Section 895.2 or otherwise, including but not limited to items to which the Grantee has certified, except for liability arising out of the gross negligence of State, its officers, agents or employees. Grantee acknowledges that it is solely responsible for compliance with items to which it has certified.

3. Grantee and State agree that in the event of judgment entered against the State and Grantee because of the gross negligence of the State and Grantee, their officers, agents or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment.

G. Financial Records

1. Grantee shall maintain satisfactory financial accounts, documents and records for the project and to make them available to the State for auditing at reasonable times. Grantee shall also retain such financial accounts, d o c uments, and records for three (3) years after final payment and one (1) year following an audit.

2. G rantee agrees that during regular office hours, the State and its duly authorized representatives shall have the right to inspect and make copies of any books, records or reports of the Grantee pertaining to this Agreement or matters related thereto. Grantee shall maintain and make available for inspection by the State accurate records of all of its costs, disbursements, and receipts with respect to its activities under this Agreement.

3. Grantee shall use applicable Generally Accepted Accounting Principles, unless otherwise agreed to by the State.

H. Use of Facilities

1. The real property (including any portion of it or any interest in it) may not be sold or transferred without the written approval of the State of California, acting through the Natural Resources Agency, or its successor, provided that such approval shall not be unreasonably withheld as long as the purposes for which the grant was awarded are maintained.

2. Grantee shall maintain, operate, and use the project in fulfillment of the purpose funded pursuant to this grant for a minimum of XXXXXXX (XX) YEARS, consistent with the Land Tenure/Site Control requirements included in the Application Guidelines. The Grantee, or the Grantee’s successor in interest in the property, may assign without novation the responsibility to maintain and operate the property in accordance with this requirement only with the written approval of the State. Grantee may be excused from its obligations for operation and maintenance of the project site only upon the written approval of the State for good cause. “Good cause” includes, but is not limited to, natural disasters that destroy the project improvements and render the project obsolete or impracticable to rebuild.

49 3. Grantee shall use the property for the purposes for which the grant was made and shall make no other use or sale or other disposition of the property. This Agreement shall not prevent the transfer of the property from the Grantee to a Public Agency, if the successor public agency assumes the obligations imposed by this Agreement.

4. If the use of the property is changed to a use that is not permitted by the Agreement, or if the property is sold or otherwise disposed of, at the State’s sole discretion, an amount equal to (1) the amount of the Grant (2) the Fair Market Value of the real property, or (3) the proceeds from the sale or other disposition, whichever is greater, may be reimbursed to the State. If the property sold or otherwise disposed of is less than the entire interest in the property funded in the Grant, an amount equal to either the proceeds from the sale or other disposition of the interest or the Fair Market Value of the interest sold or otherwise disposed of, whichever is greater, shall be reimbursed to the State.

5. The Grantee shall not use or allow the use of any portion of the real property for mitigation without the written permission of the State.

6. The Grantee shall not use or allow the use of any portion of the real property as security for any debt.

I. Nondiscrimination

1. During the performance of this grant, grantee and its subcontractors shall not unlawfully discriminate, harass or allow harassment, against any person because of sex, sexual orientation, race, color, religious creed, marital status, denial of family and medical care leave, ancestry, national origin, medical condition (cancer/genetic characteristics), age (40 and above), disability (mental and physical) including HIV and AIDS, denial of pregnancy disability leave or reasonable accommodation. Grantee and subcontractors shall ensure that the evaluation and treatment of all persons, and particularly their employees and applicants for employment are free from such discrimination and harassment. Grantee and its subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, §12900 et seq.) and the applicable regulations promulgated thereunder (Cal. Code Regs, tit. 2, §7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, §12990 (a)–(f), are incorporated into this grant by reference and made a part hereof as if set forth in full (Cal. Code Regs, tit. 2, §7285.0 et seq.).

Grantee shall include this non-discrimination and compliance provisions of this clause in all subcontracts to perform work under the grant.

2. The Grantee shall not discriminate against any person on the basis of residence except to the extent that reasonable difference in admission or other fees may be maintained on the basis of residence and pursuant to law.

3. The completed project and all related facilities shall be open to members of the public generally, except as noted under the special provisions of this Agreement or under provisions of the Act.

J. Application Incorporation

The Grant Guidelines and the Application and any subsequent changes or additions to the Application approved in writing by the State are hereby incorporated by reference into this Agreement as though set forth in full in this Agreement.

K. Severability

If any provision of this Agreement or the Application thereof is held invalid, that invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provision or application, and to this end the provisions of this Agreement are severable.

L. Waiver

No term or provision hereof will be considered waived by either party, and no breach excused by either party, unless such waiver or consent is in writing and signed on behalf of the party against whom the waiver is asserted. No consent by either party to, or waiver of, a breach by either party, whether expressed or implied, will constitute consent to, waiver of or excuse of any other, different, or subsequent breach by either party. 50 M. As s ignment

Except as expressly provided otherwise, this Agreement is not assignable by the Grantee either in whole or in part.

N. Disputes

If the Grantee believes that there is a dispute or grievance between Grantee and the State arising out of or relating to this Agreement, the Grantee shall first discuss and attempt to resolve the issue informally with the Agency Grants Administrator. If the issue cannot be resolved at this level, the Grantee shall follow the following procedures:

1. If the issue cannot be resolved informally with the Agency Grants Administrator, the Grantee shall submit, in writing, a grievance report together with any evidence to the Deputy Assistant Secretary for Bonds and Grants for the California Natural Resources Agency. The grievance report must state the issues in the dispute, the legal authority, or other basis for the Grantee’s position and the remedy sought. Within ten (10) working days of receipt of the written grievance report from the Grantee, the Deputy Assistant Secretary shall make a determination on the issue(s) and shall respond in writing to the Grantee indicating the decision and reasons therefore. Should the Grantee disagree with the Deputy Assistant Secretary’s decision, the Grantee may appeal to the Assistant Secretary for Administration and Finance for the Natural Resources Agency.

2. The Grantee must submit a letter of appeal to the Assistant Secretary explaining why the Deputy Assistant Secretary’s decision is unacceptable. The letter must include, as an attachment, copies of the Grantee’s original grievance report, evidence originally submitted, and response from the Deputy Assistant Secretary.

The Grantee’s letter of appeal must be submitted within ten (10) working days of the receipt of the Deputy Assistant Secretary’s written decision. The Assistant Secretary or designee shall, within twenty (20) working days of receipt of Grantee’s letter of appeal, review the issues raised and shall render a written decision to the Grantee. The decision of the Assistant Secretary or designee shall be final.

O. Audit Requirements

Grant projects are subject to audit by the State annually and for three (3) years following the final payment of grant funds. The audit shall include all books, papers, accounts, documents, or other records of the Grantee, as they relate to the project for which the grant funds were granted.