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HomeMy WebLinkAboutORANGE COUNTY TRANSPORTATION AUTHORITY (OCTA) (C-3-3087)A-2024-168 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Return FULLY EXECUTED Copy to City Clerk, M-30 COOPERATIVE AGREEMENT NO. C-3-3087 BETWEEN ORANGE COUNTY TRANSPORTATION AUTHORITY NOV 0 4 2024 AND 0. pw1;� CITY OF SANTA ANA uSAr 2al*iqucz(V-0 FOR MCFADDEN AVENUE TRANSIT SIGNAL PRIORITY PILOT THIS COOPERATIVE AGREEMENT (Agreement) is effective this _day of 2024 ("Effective Date"), by and between the Orange County Transportation Authority, 550 South Main Street, P.O. Box 14184, Orange California 92863-1584, a public corporation of the State of California (herein referred to as "AUTHORITY") and the City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 92702, a municipal corporation duly organized and existing under the constitution and laws of the State of California (herein referred to as "CITY"), each individually known as `PARTY", and collectively referred to as 'PARTIES". RECITALS: WHEREAS, AUTHORITY and CITY desire to enter into a Cooperative Agreement to define the roles and responsibilities related to funding between AUTHORITY and CITY for final design and construction of the McFadden Avenue Transit Signal Priority Pilot Project as defined in the scope of work provided in Exhibit A, herein incorporated by reference; (hereinafter referred to as 'PROJECT'); and WHEREAS, the PROJECT is funded with Regional Early Action Planning Grant Program of 2021 (hereinafter referred to as 'REAP 2.0") funds; and WHEREAS, REAP 2.0 is a program that seeks to accelerate progress towards state housing goals and climate commitments through a strengthened partnership between the state, its regions, and local entities. REAP 2.0 seeks to accelerate infill housing development, reduce Vehicle Miles Traveled, increase housing supply at all affordability levels, affirmatively further fair housing, and facilitate the implementation of adopted regional and local plans to achieve these goals; and Page 1 of 12 Distributed 12/4/2024 Accounting CAM M FPA PM A Yang, J Trujillo Vendor ✓ CAMM M Bornman 1 COOPERATIVE AGREEMENT NO. C-3-3087 2 BETWEEN 3 ORANGE COUNTY TRANSPORTATION AUTHORITY 4 AND 5 CITY OF SANTA ANA 6 FOR 7 MCFADDEN AVENUE TRANSIT SIGNAL PRIORITY PILOT 8 THIS COOPERATIVE AGREEMENT (Agreement) is effective this 12th day of November 2024 9 ("Effective Date"), by and between the Orange County Transportation Authority, 550 South Main Street, 10 P.O. Box 14184, Orange California 92863-1584, a public corporation of the State of California (herein 11 referred to as "AUTHORITY') and the City of Santa Ana, 20 Civic Center Plaza, Santa Ana, California 12 92702, a municipal corporation duly organized and existing under the constitution and laws of the State 13 of California (herein referred to as "CITY'), each individually known as "PARTY', and collectively referred 14 to as "PARTIES". RECITALS: 15 16 WHEREAS, AUTHORITY and CITY desire to enter into a Cooperative Agreement to define the 17 roles and responsibilities related to funding between AUTHORITY and CITY for final design and 18 construction of the McFadden Avenue Transit Signal Priority Pilot Project as defined in the scope of work 19 provided in Exhibit A, herein incorporated by reference; (hereinafter referred to as "PROJECT'); and 20 WHEREAS, the PROJECT is funded with Regional Early Action Planning Grant Program of 2021 21 (hereinafter referred to as "REAP 2.0") funds; and 22 WHEREAS, REAP 2.0 is a program that seeks to accelerate progress towards state housing 23 goals and climate commitments through a strengthened partnership between the state, its regions, and 24 local entities. REAP 2.0 seeks to accelerate infill housing development, reduce Vehicle Miles Traveled, 25 increase housing supply at all affordability levels, affirmatively further fair housing, and facilitate the 26 implementation of adopted regional and local plans to achieve these goals; and Page 1 of 12 COOPERATIVE AGREEMENT NO. C-3-3087 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 WHEREAS, the California Department of Housing and Community Development (HCD) administers REAP 2.0 in accordance with Health and Safety Code sections 50515.06 to 50515.10 ("Statues") and REAP 2.0 guidelines for Metropolitan Planning Organizations (MPO) applicants released by HCD pursuant to the Statutes (herein referred to as "REAP 2.0 Guidelines"); and WHEREAS, the Southern California Association of Governments (herein referred to as "SCAG") is the federally designated MPO for Southern California; and WHEREAS, on April 12, 2023, SCAG released a Call for Applications for REAP 2.0; and WHEREAS, the AUTHORITY submitted on behalf of the CITY and was awarded REAP 2.0 funding through SCAG for the PROJECT; and WHEREAS, the AUTHORITY's Board of Directors, at its July 24, 2023, meeting, approved AUTHORITY's financial commitment to the PROJECT of up to Three Million Six Hundred and Ninety Thousand Dollars ($3,690,000); and WHEREAS, AUTHORITY will provide Three Million Six Hundred and Ninety Thousand Dollars ($3,690,000) in REAP 2.0 funds to the CITY; and WHEREAS, CITY agrees to act as the lead agency for preliminary engineering, right-of-way, construction and construction management of PROJECT; and WHEREAS, this Agreement defines the specific terms and conditions and funding responsibilities between the PARTIES for completion of PROJECT; and WHEREAS, AUTHORITY and SCAG have entered into a Memorandum of Understanding (MOU) regarding the administration and delivery of projects awarded REAP 2.0 funds. The MOU requires certain flow -down provisions to be included in all agreements entered for this PROJECT. These provisions are contained in Exhibit B to this Agreement; and WHEREAS, the AUTHORITY's Board of Directors authorized this Agreement on September 9, 2024; and WHEREAS, CITY's City Council approved this Agreement on 15th day of October 2024. Page 2 of 12 COOPERATIVE AGREEMENT NO. C-3-3087 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NOW, THEREFORE, it is mutually understood and agreed by AUTHORITY and CITY as follows: ARTICLE 1. COMPLETE AGREEMENT A. This Agreement, including any attachments incorporated herein and made applicable by reference, constitutes the complete and exclusive statement of the term(s) and condition(s) of this Agreement between AUTHORITY and CITY concerning the PROJECT and it supersedes all prior representations, understandings, and communications. The invalidity in whole or in part of any term or condition of this Agreement shall not affect the validity of other term(s) or conditions(s) of this Cooperative Agreement. The above -referenced Recitals are true and correct and are incorporated by reference herein. B. AUTHORITY's failure to insist on any instance(s) of CITY's performance of any term(s) or condition(s) of this Agreement shall not be construed as a waiver or relinquishment of AUTHORITY's right to such performance or to future performance of such term(s) or condition(s), and CITY's obligation in respect thereto shall continue in full force and effect. Changes to any portion of this Agreement shall not be binding upon AUTHORITY except when specifically confirmed in writing by an authorized representative of AUTHORITY by way of a written amendment to this Agreement and issued in accordance with the provisions of this Agreement. C. CITY's failure to insist on any instance(s) of AUTHORITY's performance of any term(s) or condition(s) of this Agreement shall not be construed as a waiver or relinquishment of CITY's right to such performance or to future performance of such term(s) or condition(s), and AUTHORITY's obligation in respect thereto shall continue in full force and effect. Changes to any portion of this Agreement shall not be binding upon CITY except when specifically confirmed in writing by an authorized representative of CITY by way of a written amendment to this Agreement and issued in accordance with the provisions of this Agreement. ARTICLE 2. SCOPE OF AGREEMENT This Agreement specifies the terms and conditions, roles and responsibilities of the PARTIES as they pertain to the subjects and PROJECT addressed herein. Both PARTIES agree that each will Page 3 of 12 COOPERATIVE AGREEMENT NO. C-3-3087 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 100� 23 24 25 26 cooperate and coordinate with the other in all activities covered by this Agreement and any other supplemental agreements that may be required to facilitate purposes thereof. ARTICLE 3. RESPONSIBILITIES OF AUTHORITY AUTHORITY agrees to the following responsibilities for the PROJECT: A. AUTHORITY shall provide assistance to CITY in securing the REAP funds. B. AUTHORITY shall not be authorized to program any amount beyond what has been identified in this Agreement as REAP and what is ultimately approved for PROJECT by SCAG. C. AUTHORITY shall review and approve CITY's request for obligation of REAP funds prior to submittal to SCAG. D. AUTHORITY shall allocate the CITY's share of the PROJECT in the amount not -to - exceed Three Million Six Hundred and Ninety Thousand Dollars ($3,690,000) for the PROJECT using REAP funds. E. AUTHORITY shall process all required documents from the CITY and invoice SCAG on behalf of the CITY for the REAP funds. F. AUTHORITY shall submit all status reports as required by SCAG to maintain eligibility for REAP funds. G. AUTHORITY shall inform CITY in writing of any requested changes or delays to the reimbursement of the PROJECT. ARTICLE 4. RESPONSIBILITIES OF CITY CITY agrees to the following responsibilities for the PROJECT: A. CITY shall possess the legal authority to deliver this project and to finance, acquire, and construct the PROJECT consistent with REAP 2.0 Goals and Objectives. B. CITY shall act as the lead agency for the preliminary engineering, right-of-way, construction and construction management of PROJECT. C. CITY is responsible for completing PROJECT in accordance with the funding plan (Exhibit A), and to abide by all SCAG programming guidelines, flow -down provisions (Exhibit B), and any and all Page 4 of 12 COOPERATIVE AGREEMENT NO. C-3-3087 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 other State (California Department of Transportation) requirements. D. CITY shall comply with all local and State project delivery requirements including, but not limited to, Disadvantaged Business Enterprise, American with Disabilities Act, and Buy America provisions. E. CITY shall submit applicable National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA) environmental documentation to AUTHORITY. F. CITY shall procure in compliance with all applicable federal, state, and local laws and regulations. G. CITY shall coordinate with AUTHORITY to provide information to the SCAG Project Manager regarding any existing solicitation for the PROJECT. Information shall be provided and a written approval by the SCAG Project Manager shall be obtained. CITY will not advertise or award a contract before SCAG authorization to proceed. H. CITY shall invoice AUTHORITY and provide expenditure reports to AUTHORITY reflecting funds expended for PROJECT and consistent with flow -down provisions, as identified in Exhibit In I. CITY shall prepare and submit a quarterly report per Exhibit B requirements to AUTHORITY within seven (7) days of the month following the end of each quarter (April, July, October, and January). J. CITY shall prepare and submit invoices and all required reports to AUTHORITY in a timely manner in order to avoid any penalties that could reduce funding to PROJECT. K. CITY agrees that any cost overruns shall be the responsibility of CITY. L. If CITY receives local, state, or federal funds from a non -AUTHORITY source, CITY will not invoice AUTHORITY for the amount received from the other non -AUTHORITY source(s). M. CITY will notify AUTHORITY regarding any non -AUTHORITY revenues received for the PROJECT and AUTHORITY funds may not pay for expenses already supported through these non -AUTHORITY revenues. Page 5 of 12 COOPERATIVE AGREEMENT NO. C-3-3087 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 N. CITY will notify AUTHORITY if REAP 2.0 funds are used for other than the intended purposes as defined by federal or state guidelines. O. CITY agrees that AUTHORITY reserves the right to change the fund source programmed to the PROJECT and AUTHORITY would notify CITY of such a change. A. CITY shall maintain and operate the property acquired, developed, rehabilitated, or restored for the life of the resultant facility(ies) or activity. B. Failure of CITY to abide by conditions above may result in modification of funding, termination of this Agreement, and repayment of the REAP 2.0 funds. ARTICLE 5. REQUEST FOR REIMBURSEMENT In order for CITY to be reimbursed for incurred costs relative to PROJECT, CITY agrees: A. To comply with all flow -down provisions contained in Exhibit B to this Agreement, which are required by the MOU between AUTHORITY and SCAG, and specifically those related to invoicing. B. If CITY uses CITY labor to accomplish PROJECT or services under PROJECT, CITY may utilize its current approved CITY fiscal year budget overhead rate when seeking reimbursement. C. To prepare and submit to AUTHORITY an invoice with supporting documentation within 15 days of paying CITY's consultant(s). CITY's invoice shall include allowable PROJECT costs incurred and paid for by CITY. The invoice submitted by CITY shall be signed by an authorized agent who can duly certify the accuracy of the included information. D. The invoice shall be submitted on CITY's letterhead. E. The invoice shall be submitted by CITY, and in duplicate, to AUTHORITY's Accounts Payable Office. Each invoice shall include the following information: 1. Agreement Number C-3-3087 2. SCAG Project Number OWP No. 305-4926.01 3. The total of PROJECT expenditures shall specify the percent and amount of funds to be reimbursed, and include support documentation for all expenses invoiced. 4. Progress report with adequate detail describing all work completed. Page 6 of 12 COOPERATIVE AGREEMENT NO. C-3-3087 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 5. The time period covered by the invoice; 6. Labor (staff name, hours charged, hourly billing rate, current charges, and cumulative charges) performed during the billing period; 7. Such other information as requested by AUTHORITY and SCAG as part of Exhibit B, or to reasonably substantiate the validity of an invoice. F. To consult with AUTHORITY's Project Managerfor questions regarding non -reimbursable expenses. G. That total payments shall not exceed the maximum obligation specified in Article 6. Maximum Obligation. ARTICLE 6. MAXIMUM OBLIGATION Notwithstanding any provisions of this Agreement to the contrary, AUTHORITY and CITY mutually agree that AUTHORITY's maximum cumulative payment obligation hereunder shall be Three Million Six Hundred and Ninety Thousand Dollars ($3,690,000), unless agreed to and amended by both PARTIES. ARTICLE 7. DELEGATED AUTHORITY Any actions required to be taken by CITY in the implementation of this Agreement, including execution of amendments, are delegated to its Director of Public Works, or designee, and any actions required to be taken by AUTHORITY in the implementation of this Agreement, including execution of amendments, are delegated to AUTHORITY's Chief Executive Officer, or designee. ARTICLE 8. AUDIT AND INSPECTION AUTHORITY and CITY shall maintain a complete set of records in accordance with generally accepted accounting principles. The original records shall be maintained within the CITY limits. Upon reasonable notice, CITY shall permit the authorized representatives of AUTHORITY to inspect and audit all work, materials, payroll, books, accounts and other data and records of CITY for a period of not less than four (4) years after final payment, or until any on -going audit is completed whichever is longer. For purposes of audit, the date of completion of this Agreement shall be the later date of AUTHORITY's Page 7 of 12 COOPERATIVE AGREEMENT NO. C-3-3087 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 payment of CITY's final billing (so noted on the invoice) or SCAG's final payment of all REAP funds to AUTHORITY under this Agreement. AUTHORITY shall have the right to reproduce any such books, records, and accounts. The above provision with respect to audits shall extend to and/or be included in construction contracts with CITY's contractor. ARTICLE 9. INDEMNIFICATION A. CITY shall indemnify, defend and hold harmless AUTHORITY, its officers, directors, employees and agents from and against any and all claims (including attorney's fees and reasonable expenses for litigation or settlement) for any loss or damages, bodily injuries, including death, worker's compensation subrogation claims, damage to or loss of use of property alleged to be caused by the negligent acts, omissions or willful misconduct by CITY, its officers, directors, employees or agents in connection with or arising out of the performance of this Agreement. B. AUTHORITY shall indemnify, defend and hold harmless CITY, its officers, directors, employees and agents from and against any and all claims (including attorney's fees and reasonable expenses for litigation or settlement) for any loss or damages, bodily injuries, including death, worker's compensation subrogation claims, damage to or loss of use of property alleged to be caused by the negligent acts, omissions or willful misconduct by AUTHORITY, its officers, directors, employees or agents in connection with or arising out of the performance of this Agreement. C. The indemnification and defense obligations of this Agreement shall survive its expiration or termination. ARTICLE 10. ADDITIONAL PROVISIONS The AUTHORITY and CITY agree to the following mutual responsibilities: A. Term of Agreement: This Agreement shall continue in full force and effect until December 31, 2026, or until all REAP funds have been expended, whichever is later. This Agreement may only be extended upon written mutual consent by both PARTIES. 5 5 Page 8 of 12 COOPERATIVE AGREEMENT NO. C-3-3087 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 B. Amendment: This Agreement may be amended in writing at any time by the mutual consent of both PARTIES. No amendment shall have any force or effect unless executed in writing by both PARTIES. C. Termination: In the event either PARTY defaults in the performance of any of their obligations under this Agreement or breaches any of the provisions of this Agreement, the non -defaulting Party shall have the option to terminate this Agreement upon thirty (30) days' prior written notice to the other Party. D. Termination for Convenience: Either PARTY may terminate this Agreement for convenience by providing thirty (30) calendar days prior written notice of its intent to terminate for convenience to the other PARTY. E. Compliance with All Laws: AUTHORITY and CITY shall comply with all applicable federal, state, and local laws, statues, ordinances and regulations of any governmental authority having jurisdiction over the PROJECT. F. Legal Authority: AUTHORITY and CITY hereto consent that they are authorized to execute this Agreement on behalf of said PARTIES and that, by so executing this agreement, the PARTIES hereto are formally bound to the provisions of this Agreement. G. Severability: If any term, provision, covenant or condition of this Agreement is held to be invalid, void or otherwise unenforceable, to any extent, by any court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby, and each term, provision, covenant or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law. H. Counterparts of Agreement: This Agreement may be executed and delivered in any number of counterparts, each of which, when executed and delivered shall be deemed an original and all of which together shall constitute the same agreement. Electronic signatures will be permitted. I. Assignment: Neither this Agreement, nor any of the PARTIES rights, obligations, duties, or authority hereunder may be assigned in whole or in part by either PARTY without the prior written consent of the other PARTY in its sole and absolute discretion. Any such attempt of assignment shall be Page 9 of 12 COOPERATIVE AGREEMENT NO. C-3-3087 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 deemed void and of no force and effect. Consent to one assignment shall not be deemed consent to any subsequent assignment, nor the waiver of any right to consent to such subsequent assignment. J. Obligations To Comply with Law: Nothing herein shall be deemed nor construed to authorize or require any PARTY to issue bonds, notes or other evidence of indebtedness under the terms, in amounts, or for purposes other than as authorized by local, state or federal law. K. Governing Law: The laws of the State of California and applicable local and federal laws, regulations and guidelines shall govern this Agreement. L. Litigation fees: Should litigation arise out of this Agreement for the performance thereof, the court shall award costs and expenses, including attorney's fees, to the prevailing PARTY. M. Notices: Any notices, requests, or demands made between the PARTIES pursuant to this Agreement are to be directed as follows: To CITY: To AUTHORITY: City of Santa Ana Orange County Transportation Authority Traffic Engineering Section/M-43 550 South Main Street 20 Civic Center Plaza P.O. Box 14184 Santa Ana, CA 92701 Orange, CA 92863-1584 Attention: Nabil Saba Attention: Megan Bornman Executive Director, Public Works Agency Senior Contract Administrator Phone: (714) 647-5654 Phone: (714) 560-5064 Email: nsaba(@santa-ana.org E-mail: mborn mangocta.net CC: Alicia Yang OCTA Project Manager Phone: (714) 560-5362 E-mail: avang(o)octa.net I Page 10 of 12 COOPERATIVE AGREEMENT NO. C-3-3087 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 KIRA 23 24 25 26 N. Successors and Assigns: The provisions of this Agreement shall bind and inure to the benefit of each of the PARTIES hereto, and all successors or assigns of the PARTIES hereto. O. Time is of the Essence: Time is of the essence for the work identified in Exhibit A. All work must be completed no later than December 31, 2025. P. Force Maieure: Either PARTY shall be excused from performing its obligations under this Agreement during the time and to the extent that it is prevented from performing by an unforeseeable cause beyond its control, including but not limited to; any incidence of fire, flood; acts of God; commandeering of material, products, plants or facilities by the federal, state or local government; national fuel shortage; or a material act or omission by the other PARTY; when satisfactory evidence of such cause is presented to the other PARTY, and provided further that such nonperformance is unforeseeable, beyond the control and is not due to the fault or negligence of the PARTY not performing. Page 11 of 12 COOPERATIVE AGREEMENT NO. C-3-3087 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 -- 25 26 IN WITNESS WHEREOF, the PARTIES hereto have caused this Agreement No. C-3-3087 to be executed as of the date of the last signature below. CITY OF SANTA ANA '• By: Alvaro Nunez City Manager Dated: ATTEST: Jenn WL. Hall Dated: \(� APPROVED AS TO FORM: By: Jonathan T. Martinez Assistant City Attorney RECOMMENDED FOR APPROVAL: N a b i l Saba Digitally signed by :04:0 Sala Date: 2024.04.30 17:04:09 -0T00' By: Nabil Saba„ P.E. Executive Director, Public Works Agency Dated: ORANGE COUNTY TRANSPORTATION AUTHORITY L)arYBII E. JOlhnsOh By: Darrell E. Johnson (Nov 12, 2024 13:08 PST) Darrell E. Johnson Chief Executive Officer APPROVED AS TO FORM: lGt.LYLB-k no"-" By: James Donich (Nov 12, 2024 06:41 CS James M. Donich General Counsel APPROVED: y Kia Mortazavi Executive Director, Planning VAN Page 12 of 12 Exhibit A - Scope of Work and Schedule Cooperative Agreement No. C-3-3087 Southern California Association of Governments (SLAG) Regional Early Action Planning (REAP) 2.0 Program CTC Partnership Program SCOPE DESCRIPTION, APPROACH AND DELIVERABLES Project Name: McFadden Avenue Transit Signal Priority Pilot Agency Name: Orange County Transportation Authority (OCTA) Project Manager Name: Alicia Yang Project Manager Contact Info: ayang@octa.net or 714-560-5362 Describe each principle task identified in the Budget & Timeline, provide scope, approach, and list deliverable(s). Add or delete rows as needed. Task# Task Title Scope Description and Approach Deliverable(s) 1 PROJECT MANAGEMENT 1.1 Administration and Project Managing project budget and schedule, including Invoices and progress reports Monthly Invoices and progress reports Management 1.2 Project Development Team Monthly meetings between City Staff, OCTA, and consultant team Kick-off meeting and subsequent PDT Meetings meetings. Meeting agendas and minutes. Ongoing coordination with project stakeholders including OCTA (Engineers and Bus Operations), City 1.3 Agency Project Oversight � � J g PWA-CIP Engineering Civil Improvements), Ci PWA-Maintenance Services Bus Shelters), Ci -PWA g g ( Ty ( ) Ty Follow-up meetings, as needed. Meeting Traffic Engineering (Traffic Signal and Lighting) and other City Services. agendas and minutes. 1.4 REAP Reporting The Consultant Team will report outcomes for the project and will work with the City of Santa Ana Methodology and report outcomes and OCTA staffto develop a methodology to report how the project works towards REAP goals. 2 CONCEPTUAL PLANNING UPDATE The City of Santa Ana in coordination with OCTA has developed a Cooperative Transit Study with recommended transit solutions to augment bicycle improvements planned on the McFadden corridor. This task will develop an Implementation Plan, by City of Santa Ana staff in-house or through contract Concept of Operation? Before Study Memo, 2.1 Implementation Plan consultant, that pulls from the City/OCTA Cooperative Transit Study recommendations, City's current Draft Implementation Plan, Final status on the McFadden Bicycle Boulevard construction project, current corridor conditions, and Implementation Plan stakeholder input. Evaluate and develop existing condition measures of effectiveness. 2.2 Risk Register Enumerate risks and assign probability. Develop potential contingency plans to keep project Master Project Risk Register construction on schedule. 2.3 Project Maintenance Requirements Develop a strategy to maintain the project including TSP, detection, and other ITS improvements. Maintenance Plan Memorandum 3 DESIGN SERVICES City of Santa Ana (in-house) or contract consultant to design necessary plans for transit solutions that will fill in the gaps to City's existing McFadden Bicycle Boulevard construction project. These 3.1 Detailed Design improvement will be based on update in Task 2, which can include bus stop relocation, bus shelters, 30%, 60%, 90%and 100% Final Design Plans bus stop lighting, bus pads, wayfinding signs, and central system upgrades for transit signal priority operations. City of Santa Ana to prepare necessary bid packages to implement solutions detailed in design. This 3.2 Bid Packages may include coordinating with OCTA directly for improvements on buses that will be best procured by 90%and Final Bid Packages OCTA directly throu h on -call or vendor approved lists. 4 CONSTRUCTION 4.1 Bid for Construction City of Santa Ana to bid construction and be prepared to answer to questions during the bid as it Bid for Construction relates to this project scope. City of Santa Ana or contract consultant to provide construction management support throughout the Construction Management support and 4.2 Construction Management construction of the project including outreach to impacted communities via social media, city website documentation and neighborhood meetin s. Constructiew all improvements as detailed in design plans in Task 3 including material procurement 4.3 Field Construction and contractor construction activities. Equipment on the buses will be coordinated with OCTAto Construction activity in the field ensure schedule compliance. 4.4 Central System TSP Integration Construction and perform all integration activities with the City of Santa Ana's Bicycle Boulevard Construction and integration activity in City's project to ensure working system, including configuration and documentation of TSP implementation. central system 4.5 Project Deployment Re ort A summa of all the Project De to ment Tasks Project De to ment Report 5 CONTINUITY TESTING Evaluate and assess the technology solutions implemented, provide summary of observations, Technology Evaluation and Assessment 5.1 Project Evaluation and Assessment evaluate measure of effectiveness compared to before conditions, and summarize in a memo the Technical Memorandum of the TSP solution on the McFadden corridor. 6 CONTINGENCY r1.erformance % Project Management contingency for miscellaneous issues N/A NOTE: This project will be lead by the City of Santa Ana through a cooperative agreement with OCTA. Page 1 of 2 `c d Y � O Z U N u1 N O N � � ANNE MEN ■■ NME ■■ ■■ v N O N ■■ME I ■■ mME ■■■■MEN ME ■■■■ ME MEN ■■■ of r 1 a N M ME O N O I M N N � N P -T F1 0 u H y 0 v o wn E s w m E - s H + -4 LLL E Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 As a recipient of funds from the California Department of Housing and Community Development (HCD), the Southern California Council of Governments (SCAG) through the Regional Early Action Planning Grant Program of 2021 (REAP 2.0) has awarded funding to projects meeting the goals and objectives of the program. The Orange County Transportation Authority (OCTA) has successfully secured funding from REAP 2.0 to deliver the awarded projects and seek reimbursement for qualifying work. Any implementing agency expected to receive funds from OCTA for projects awarded REAP 2.0 funds shall deliver the projects in compliance with the following flow -down provisions from the SCAG and OCTA Memorandum of Understanding (MOU) No. M-009-24: Section 3.c. (Scope of Work and Sub -Recipient's Responsibilities — nexus to REAP 2.0) Section 3.e. — 3.g. (Scope of Work and Sub -Recipient's Responsibilities — procurements) Section 31. (Scope of Work and Sub -Recipient's Responsibilities — penalty of perjury) Section 5.e. (Funding — repayment of ineligible costs) Section 6 (Invoices) Section 7 (Reporting) Section 8 (Accounting) Section 9 (Allowable Uses of Grant Funds) Section 10 (Work Products) Section 13 (Insurance) Section 14 (Indemnification) Section 18 (Records Retention) Section 19 (Monitoring and Audits) Section 21 (Compliance with Laws, Rules, and Regulations) Section 22 (Public Works and Construction) Section 23 (Conflict of Interest) Section 24 (Independent Contractor) Section 25 (Assignment) Section 26 (Release of Information) The terms as it is presented in the MOU for each of the provisions above are included in the next section. Please note the following: • Sub -Recipient refers to the implementing agency (e.g. City of Santa Ana). • OCTA will be responsible for submitting all invoices and reports to SCAG; therefore, the sub -recipient (City of Santa Ana) will be required to provide the necessary invoices and reports in the format indicated to OCTA prior to the deadlines indicated in the provisions but will not need to submit invoices or reports to SCAG directly. • The period of performance, per the MOU, is from April 12, 2023, to November 30, 2025. • It is the responsibility of the sub -recipient to flow -down the appropriate provisions if consultants or similar are used to assist in delivering the project. 1 I Page Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 3. Scope of Work and Sub -Recipient's Responsibilities c. Sub -Recipient must demonstrate a clear and significant nexus to all the REAP 2.0 Goals and Objectives, as described in Section 9 of this MOU, and must carry out the Projects to meet the REAP 2.0 Goals and Objectives. Any lack of action or action inconsistent with REAP 2.0 Goals and Objectives may result in review and could be subject to modification of funding, termination of this MOU, and repayment of the Grant Funds. e. As a recipient of federal and state funds, SCAG has the responsibility for ensuring that its procurement process complies with all applicable federal, state and funding requirements. For all agreements entered into containing funds provided under this MOU or to perform work under this MOU, Sub -Recipient shall procure in compliance with all applicable federal, state, and local laws and regulations. f. The term "Consultant(s)" shall hereinafter refer to all entities that Sub -Recipient procures, manages, or otherwise enters into contracts or agreements with, in furtherance of the Projects or this MOU regardless of the timing, nature of service/work provided or type of organization, including but not limited to government entities, political subdivisions, subrecipients, consultants, contractors, service providers, suppliers, independent contractors, professionals, managers, architects, engineers, and subcontractors. g. Upon request, Sub -Recipient shall provide information to the SCAG Project Manager regarding any existing solicitation including but not limited to Requests for Proposals, Invitation for Bids, Request for Qualifications, and Requests for Quotation (collectively "RFP"). For new RFPs developed or finalized after the Effective Date of this MOU, Sub - Recipient shall provide information to the SCAG Project Manager and obtain SCAG Project Manager's written approval on any final RFP prior to its issuance. SCAG may require documentation of RFPs and Notices to Proceed before approval of invoice reimbursement. k. Any and all notices, reports, or other communications required by this MOU, including but not limited to invoices, accounting reports, supporting documentation, and monitoring reports, shall be submitted under the penalty of perjury. 5. Funding e. Any costs for which Sub -Recipient receives reimbursement or credit that is determined by a subsequent audit or other review by either SCAG, HCD, other State authorities or federal cognizant agency to be ineligible or otherwise unallowable, are to be repaid by Sub -Recipient within thirty (30) calendar days of Sub -Recipient receiving notice or a written demand for reimbursement from SCAG. Such repayment may include interest, penalties or related fees, as determined by HCD or other State authorities. Should Sub -Recipient fail to reimburse unallowable costs due to SCAG within thirty (30) calendar days of demand, or within such other period as may be agreed between both parties hereto, SCAG is authorized to withhold and/or off -set future payments to Sub -Recipient. 2 1 Page Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 6. Invoices a. This MOU is a Cost Reimbursement agreement. Amounts claimed must reflect the actual incurred and paid cost of completed work. The actual incurred and paid costs may not exceed the Project's budget set forth in the most current fully executed SOW Approval Form. All invoices submitted to SCAG for payment shall be e-mailed to accountspayable@scag.ca.gov (file cannot exceed TOMB). All invoices submitted to SCAG for the Projects shall reference the OWP Project Number (OWP No. 305-4926.01). A separate invoice must be submitted for each individual Project. b. By the twenty-first following the start of a new quarter (i.e., January 21, April 21, July 21, October 21), Sub -Recipient shall submit an invoice for each Project to SCAG using the "Invoice Report" attached as Exhibit C. The Invoice Report must be submitted in both PDF format and the Excel file provided by SCAG. The Invoice Report shall also include, in narrative form, a progress report section with a description of services performed by Sub - Recipient's staff and Consultant(s) as well as progress toward completion of tasks related to the Project for the prior quarter, a reporting of all costs incurred for that period, and progress achieved toward the REAP 2.0 Goals and Objectives. SCAG shall review the Invoice Report for compliance with this MOU. If SCAG determines that the Invoice Report is compliant with this MOU, SCAG shall approve the Invoice Report and issue payment to the Sub -Recipient. c. Incomplete or inaccurate invoices may be returned to Sub -Recipient for correction without payment until corrected and approved. SCAG may, at its discretion, disallow any unsupported costs and process the invoice. If Sub -Recipient corrects the error, the disallowed items can be included in the next set of invoices. d. Travel expenses and per diem rates are not to exceed the rate specified by the State of California Department of Human Resources for similar employees (i.e. non -represented employees) unless written verification is supplied that government hotel rates were not then commercially available to Sub -Recipient, and its Consultant(s) at the time and location required as specified in the California Department of Transportation's Travel Guide Exception Process, which can be found at the following link: http://www.dot.ca. og v/hq/asc/travel/ap_b/bul.htm. Also see the link for a summary of travel reimbursement rules. e. The Parties acknowledge that SCAG's fiscal year is from July 1 to June 30. Sub -Recipient agrees to submit all invoices to SCAG for eligible expenses incurred through June 30th, no later than July 21st during the Term of this MOU. SCAG shall not be obligated to pay Sub - Recipient for any invoice received after such date. f. Sub -Recipient shall submit its final invoice to SCAG within thirty (30) days of the completion of each individual Project, but no later than December 31, 2025, whichever is first. SCAG shall not be obligated to pay -Sub Recipient for any invoice received after such date. g. Sub -Recipient will require that its Consultant(s) pay any contractors and subcontractors for satisfactorily completed work no later than ten (10) days of receipt of each payment from Sub- 3 1 Page Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 Recipient. The ten (10) calendar days period is applicable unless a shorter period is required by applicable law. 7. Reporting a. At any time during the term of this MOU, SCAG may request additional information, as needed, to demonstrate satisfaction of all requirements identified in the MOU. b. By February 10 of each year following receipt of funding pursuant to this MOU, Sub -Recipient shall submit an Annual Report using the "Sub -Recipient Report Template," attached as Exhibit D ("Report Template"). Sub -Recipient shall submit a separate Annual Report for each Project. The Annual Report shall include, in narrative form, a description of services performed by Sub -Recipient's staff and Consultant(s) as well as progress toward completion of tasks related to the Project for the prior year, a reporting of all costs incurred for that period, and progress achieved toward the REAP 2.0 Goals and Objectives. c. When a Project is finalized, and no later than December 31, 2025, Sub -Recipient shall submit a Close -Out Report for the Project. At the time of the execution of this MOU, HCD has not provided the requirements for the Close -Out Report due to HCD by all grantees at the conclusion of the grant performance period. Therefore, the Close -Out Report format required by SCAG of Sub -Recipient is not available at this time, but will be provided when it becomes available. d. All reports submitted to SCAG shall reference the OWP Project Number (OWP No. 305- 4926.01). 8. Accounting a. Sub -Recipient shall establish and maintain an accounting system and reports that properly accumulate incurred Project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles ("GAAP"), enable the determination of incurred costs as interim points of completion, and provide support for payment vouchers and invoices. b. Sub -Recipient shall establish a separate ledger account for receipts and expenditures of Project Funds and Grant Funds and maintain expenditure details in accordance with the Scopes of Work, as outlined in the most current fully executed SOW Approval Form, for each Project. c. Sub -Recipient shall maintain documentation of its completed procurements (including the use of sole source purchasing), and financial records of expenditures incurred during the course of the Projects in accordance with GAAP. 9. Allowable Uses of Grant Funds a. SCAG shall not award or disburse funds unless it determines that the Project Funds and Grant Funds shall be expended in compliance with the REAP 2.0 Goals and Objectives. Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 REAP 2.0 Goals ("Goals") are to invest in housing, planning, and infill housing -supportive infrastructure across the entire state in a manner that reduces Vehicle Miles Traveled ("VMT"), increases housing affordability, and advances equity. More detailed information on the Goals can be found in Section 201 of the REAP 2.0 Notice of Funding Availability ("NOFA") and Final Guidelines for MPO Applicants and are made a part of the provisions of this MOU as if set forth in full. ii. REAP 2.0 Objectives ("Objectives") include: (1) accelerating infill development that facilitates housing supply, choice, and affordability; (2) affirmatively furthering fair housing; (3) reducing vehicle miles traveled. More detailed information on the Objectives can be found in Section 202 of the REAP 2.0 NOFA and Final Guidelines for MPO Applicants and are made a part of the provisions of this MOU as if set forth in full. b. Project Funds and Grant Funds shall only be used by Sub -Recipient for activities approved by SCAG and included in the Scopes of Work, as outlined in the most current fully executed SOW Approval Form. c. Project Funds and Grant Funds may not be used for administrative costs of persons employed by Sub -Recipient for activities not directly related to eligible activities. d. Sub -Recipient shall use no more than five percent (5%) of the Project Funds for administrative costs related to a Project, or a maximum of Six Hundred Sixty -Four Thousand, Five Hundred Dollars ($664,500), whichever is lower. For purposes of this MOU, administrative costs are the costs incurred in direct support of grant administration that are not included in the organization's indirect cost pool. Additional funds may be used from other sources solely contributed by Sub -Recipient to support Sub -Recipient's administration of the Projects. i. Sub -Recipient must clearly indicate if funds will be used towards administrative costs on or before the Effective Date of this MOU. ii. If Sub -Recipient is seeking reimbursement for indirect costs and/or fringe benefits costs, they must annually submit an Indirect Cost Allocation Plan ("ICAP") or an Indirect Cost Rate Proposal ("ICRP") to its cognizant agency for indirect costs and/or fringe benefits costs in accordance with Title 2 Code of Federal Regulations Part 200 (2 CFR 200) Uniform Administrative Requirements, Cost Principles, And Audit Requirements For Federal Awards. The cognizant agency for indirect costs and/or fringe benefits costs means the federal agency responsible for reviewing, negotiating, and approving ICAPs or ICRPs. Sub -Recipient must provide their approved indirect cost rate and/or fringe benefit rate and provide a copy to SCAG Project Manager of the approved negotiated indirect cost rate agreement ("NICRA") for the current fiscal year and subsequent years throughout the performance period. Indirect costs and/or fringe benefits costs may be sought for reimbursement only if Sub -Recipient has an approved NICRA from its cognizant agency on or before the Effective Date of this MOU. iii. If Sub -Recipient is seeking reimbursement for fringe benefits costs with absence of the approved NICRA and proposes to use a rate to allocate the fringe benefits costs on the basis 5 Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 of entity -wide salaries and wages of the employees receiving the benefits, they must annually prepare the fringe benefits cost allocation plan in accordance with Title 2 Code of Federal Regulations Part 200 (2 CFR 200) Uniform Administrative Requirements, Cost Principles, And Audit Requirements For Federal Awards and provide a letter from the Sub - Recipient's independent auditor confirming the compliance for the current fiscal year and subsequent years throughout the performance period. iv. If Sub -Recipient elects a de minimis indirect cost rate of 10%, they must annually complete a certification form provided by SCAG Project Manager to confirm the eligibility and compliance with Title 2 Code of Federal Regulations Part 200 (2 CFR 200) Uniform Administrative Requirements, Cost Principles, And Audit Requirements For Federal Awards and submit the signed form to SCAG Project Manager for the current fiscal year and subsequent years throughout the performance period. The de minimis rate of 10% is to be applied to modified total direct costs (MTDC) as defined by 2 CFR Part 200.1. e. There must be a strong implementation component for the funded activity through REAP 2.0, including, where appropriate, agreement by Sub -Recipient to submit the completed planning document to the applicable board, council, or other entity for adoption. If Sub -Recipient does not formally request adoption of the funded activity, it may be subject to repayment of the Grant Funds. 10. Work Products a. For purposes of this MOU, "Work Products" shall mean all deliverables created or produced under this MOU including, but not limited to, all deliverables conceived or made either solely or jointly with others during the term of this MOU and during a period of six months after the termination thereof, which relates to the Projects. Work Products shall not include real property or capital improvements. Work Products includes all deliverables, inventions, innovations, improvements, or other works of authorship Sub -Recipient or Consultant(s) may conceive of or develop in the course of this MOU, whether or not they are eligible for patent, copyright, trademark, trade secret or other legal protection. b. Sub -Recipient shall submit one (1) electronic copy of all Work Products associated with the Projects to the assigned SCAG Project Manager. c. SCAG shall own all Work Products. SCAG grants to Sub -Recipient a perpetual royalty -free, non -assignable, non-exclusive and irrevocable license to reproduce, publish or otherwise use Work Products related to the Projects and developed as part of this MOU; provided, however, that any reproduction, publishing, or reuse of the Work Products will be at Sub -Recipient's sole risk and without liability or legal exposure to SCAG. d. Subject to any provisions of law, including but not limited to the California Public Records Act, all deliverables and related materials related to the Projects shall be held confidential by Sub -Recipient. Nothing furnished to SCAG which is otherwise known or is generally known, or has become known, to the related industry shall be deemed confidential. Sub -Recipient shall safeguard such confidential materials from unauthorized disclosure, using the same standard 6 1 Page Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 of care to avoid disclosure as Sub -Recipient treats its confidential information, but in no case less than reasonable care. 13. Insurance a. Sub -Recipient, at their own expense, shall procure and maintain policies of insurance, or provide evidence of self-insurance, of the types and amounts below, for the duration of the MOU. The policies shall state they afford primary coverage. Insurance Type Requirements General Liability Commercial General Liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01. Limits Not less than $5,000,000 per occurrence, $10,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO "insured contract" language will not be accepted. Automobile Automobile insurance at least as Covering bodily injury and property damage Liability broad as Insurance Services for all activities of the Sub -Recipient arising Office form CA 00 01. out of or in connection with work to be performed under this MOU, including coverage for any owned, hired, non -owned, or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. Workers' Compensation/ Employer's Liability Professional Workers' Compensation Including Occupational Diseases in insurance as required by the accordance with California Law and State of California and Employer's Liability Insurance. Not required for sole proprietors or Sub -Recipients with no employees. Professional Liability (Errors Liability and Omissions) insurance Insurance appropriate to the Sub - Recipient's profession. Builders Risk Upon commencement of construction and with approval of SCAG, Sub -Recipient shall obtain and maintain builder's risk (course of construction) for the entire duration of the Project. Not required for Projects without construction. Employers' Liability Insurance with a limit of not less than $1,000,000 each accident. With limits of not less than $3,000,000 per occurrence. In addition, it shall be required that the professional liability insurance policy remain in effect for three (3) years after the Completion Date of this MOU. Sub -Recipient shall purchase and maintain property insurance written on a builder's risk "Special Form Cause of Loss" or equivalent policy form in an amount not to exceed amount of the Contract, plus the cost of materials supplied or installed by others on a full replacement cost basis. The Builder's Risk policy shall include a soft cost endorsement that covers soft costs equal to 7 1 Page Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 Insurance Type Requirements Limits twenty percent (20%) of the Contract's full value. Soft costs are defined as certain expenses, in addition to labor and materials, required to complete the Project that has been delayed due to unexpected physical damage and include, but are not limited to, the following: legal/accounting fees, design or other professional fees, financing costs, taxes, general administration, lease expenses, permit fees and insurance premiums. This insurance shall include the interests of the Additional Insureds as named below, Sub - Recipient and the subcontractors of every tier on the Project as insureds. The insurance shall cover without limitation, loss or damage to the Work arising from the perils covered under "Special Form Cause of Loss" form coverage including, without duplication of coverage for theft, fire, lightning, explosion, or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, malicious mischief, collapse, earthquake, flood, windstorm, false -work, testing and delay of startup, temporary buildings, property in transit and while stored at a temporary location, debris removal including demolition occasioned by enforcement of any applicable legal requirements, and shall cover reasonable compensation for Sub -Recipient's services and expenses required as a result of such loss. During the Project construction period, Sub -Recipient and its subcontractors shall mutually waive all rights of recovery against each other and against the Additional Insureds identified below for damages caused by fire or other perils covered by the Builders Risk "Special Form Cause of Loss" insurance. All applicable policies of insurance covering the Work or the property of the Sub -Recipient or subcontractor shall be endorsed to provide a waiver of subrogation in favor of the Additional Insureds identified below, Sub -Recipient and all subcontractors of every tier. Further, Sub -Recipient hereby releases, and shall cause its subcontractors to 8 1 Page Insurance Type Requirements Pollution Coverage shall provide for Liability liability arising out of sudden, accidental, and gradual pollution, and remediation. Not required for Projects without construction. Products/ Coverage shall extend a Completed minimum of three (3) years after Operations project completion. Not required Coverage for Projects without construction. Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 Limits release, the Indemnitees identified in section 14 from any and all claims, losses and damages caused by fire or other perils covered by the Builders Risk "Special Form Cause of Loss" insurance. There shall be no deductible or self -insured retention exceeding $10,000.00 per loss, other than earthquake or flood which may have deductible or self - insured retentions not exceeding $50,000.00. The policy may have sublimits not less than the following: Earthquake $5,000,000.00 Flood $1,000,000.00 The policy limit shall be no less than $1,000,000 per claim and in the aggregate. All activities contemplated in this MOU shall be specifically scheduled on the policy as "covered operations." The policy shall provide coverage for remediation of the site in the event of an environmental contamination event arising out of the materials, supplies, products, work, operations, or workmanship. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed "by or on behalf' of the insured. Policy shall contain no language that would invalidate or remove the insurer's duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. SCAG, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage. b. Higher Limits: no representation is made that the minimum insurance requirements of this agreement are sufficient to cover the indemnity or other obligations of the sub -recipient under this agreement. c. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 9 1 Page Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 SCAG, its officials, employees, and volunteers are to be covered as additional insureds, as respects to liability arising out of the activities performed by or on behalf of Sub -Recipient; products and completed operations of Sub -Recipient; premises owned, occupied or used by Sub -Recipient; or automobiles owned leased, hired or borrowed by Sub -Recipient. The coverage shall contain no special limitations on the scope of protection afforded to SCAG, its officials and employees. ii. For any claims related to this Project, Sub -Recipient's insurance coverage shall be primary insurance as respects SCAG, its officials and employees. Any insurance or self-insurance maintained by SCAG shall be excess of Sub -Recipient's insurance and shall not contribute with it. iii. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to SCAG, its officials and employees. iv. Sub -Recipient's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. d. The Workers' Compensation and Employer's Liability policies shall include a waiver of subrogation endorsement in favor of SCAG, its, officials, employees, and volunteers. e. Any deductibles or self -insured retentions in amounts over $10,000 must be declared to and approved by SCAG. f. Insurance is to be placed with California admitted insurers with a current A.M. Best's rating of no less than A and be admitted, unless otherwise approved by SCAG. g. Sub -Recipient shall furnish SCAG with original endorsements and certificates of insurance evidencing coverage required by this clause. All documents are to be signed by a person authorized by that insurer to bind coverage on its behalf. All documents are to be received and approved by SCAG before work commences. Upon request of SCAG at any time, Sub - Recipient shall provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications. h. Sub -Recipient agrees to ensure that its Consultant(s) provide the same minimum insurance coverage and endorsements required of Sub -recipient. Sub -Recipient agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. However, in the event Sub - Recipient's Consultant(s) cannot comply with this requirement, which proof must be submitted to SCAG, Sub -Recipient shall be required to ensure that its Consultant(s) provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with Consultant(s) scope of work and services, with limits less than required of the Sub -Recipient, but in all other terms consistent with the Sub -Recipient's requirements under this MOU. This provision does not relieve Sub -Recipient of its contractual obligations under the MOU and/or limit its liability to the amount of insurance coverage provided by its Consultant(s). This provision is intended solely to provide Sub -Recipient with the ability to utilize Consultant(s) 10 1 Page Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of Sub -Recipient under this MOU given the limited scope of work or services provided by the Consultant(s). Sub -Recipient agrees that upon request, all agreements with Consultant(s) will be submitted to SCAG for review. 14. Indemnification Sub -Recipient shall fully defend, indemnify and hold harmless SCAG, its members, officers, employees, and agents from any and all claims, losses, liabilities, damages, expenses, suits or actions including attorneys' fees, brought forth or arising under any theories or assertions of liability, occurring by or resulting from or otherwise related to the Projects or this MOU. Such obligations shall not, however, extend to any claims, losses, liabilities, damages, expenses, suits or actions that arise from SCAG's willful misconduct. 18. Records Retention a. Sub -Recipient and its Consultant(s) shall maintain all source documents, books and records connected with the Projects, all procurements related to the Projects, all work performed under this MOU, and evidence demonstrating the funding was used for the appropriate purposes for a minimum of five (5) years after December 31, 2026. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats. b. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period, all records shall be retained by Sub -Recipient and its Consultant(s) for five (5) years after: (a) the conclusion or resolution of the matter; (b) the date an audit resolution is achieved for each annual SCAG OWP; or (c) December 31, 2026, whichever is later. 19. Monitoring and Audits a. SCAG may monitor expenditures and activities of Sub -Recipient and its Consultant(s) as SCAG deems necessary to ensure compliance with the MOU, the Statutes, the REAP 2.0 Guidelines and the Program Guidelines. b. At any time during the term of this MOU, SCAG, HCD, the California Department of General Services, the California Bureau of State Audits, or their designated representatives may perform or cause to be performed a financial audit of any and all phases of the Projects. At their request, Sub -Recipient shall provide, at its own expense, a financial audit prepared by an independent certified public accountant. c. Sub -Recipient agrees that SCAG, HCD, the California Department of General Services, the California Bureau of State Audits, or their designated representatives shall have the right to review, obtain, and copy all records and supporting documentation related to the performance of this MOU. Sub -Recipient agrees to provide any relevant information requested. Copies shall be made and furnished to SCAG upon request at no cost to SCAG. 111 Page Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 d. Sub -Recipient agrees to permit SCAG, HCD, the California Department of General Services, the California Bureau of State Audits, or their designated representatives access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this MOU, the Statutes, the REAP 2.0 Guidelines, or applicable state and federal laws, rules, and regulations. e. If there are audit findings from SCAG or HCD's audit, Sub -Recipient must submit a detailed response acceptable to SCAG or HCD for each audit finding within ninety (90) days of the audit finding report. 21. Compliance with Laws, Rules, and Regulations a. Sub -Recipient agrees to comply with all federal, state and local laws, rules and regulations applicable to this MOU. b. Non-Discrimination/Equal Employment Opportunity During the performance of this MOU, Sub -Recipient assures that no person shall be denied the MOD's benefits, be excluded from participation or employment, be denied Project benefits, or be subjected to discrimination based on race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, under the Projects or any program or activity funded by this MOU, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 U.S.C. §§ 3601-20) and all implementing regulations, the Americans with Disabilities Act ("ADA") of 1990 (42 U.S.C. §§ 12101 et seq.) and all applicable regulations and guidelines issued pursuant to the ADA, and the Age Discrimination Act of 1975 and all implementing regulations. Sub -Recipient shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. ii. Sub -Recipient shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code § 12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs. tit. 2, § 11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§ 11135-11139.5), and the regulations or standards adopted by HCD to implement such article. iii. Sub -Recipient shall permit access by representatives of the Department of Fair Employment and Housing, SCAG, and HCD upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours' notice, to such of its books, records, accounts, and all other sources of information and its facilities as the Department of Fair Employment and Housing, SCAG, or HCD shall require to ascertain compliance with this Section. 12 1 Page Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 iv. Sub -Recipient shall give written notice of its obligations under this Section to labor organizations with which they have a collective bargaining or other agreement. v. Sub -Recipient shall adopt and implement affirmative processes and procedures that provide information, outreach and promotion of opportunities in the Projects to encourage participation of all persons regardless of race, color, national origin, sex, religion, familial status, or disability. This includes, but is not limited to, a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, as required by 24 C.F.R. § 92.351. c. Recycling Certification. Sub -Recipient shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post -consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to SCAG regardless of whether the product meets the requirements of Public Contract Code Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (Pub. Contract Code § 12205). d. Anti -Trust Claims. Sub -Recipient, by signing this MOU, hereby certifies that if these services or goods are obtained by means of a competitive bid, the Sub -Recipient shall comply with Title 1, Division 5, Chapter 11 of the California Government Code (Gov. Code §§ 4550-4554). e. Child Support Compliance Act. If the Grant Funds provided under this MOU are in excess of $100,000, Sub -Recipient acknowledges in accordance with Public Contract Code 7110, that: Sub -Recipient recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9 of the Family Code; and ii. Sub -Recipient, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. f. Priority Hiring Considerations. If this MOU includes services in excess of $200,000, the Sub - Recipient shall give priority consideration in filling vacancies in positions funded by the MOU to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub. Contract Code §10353. g. Loss Leader. If this MOU involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a "loss leader" as defined in Section 17030 of the Business and Professions Code. (PCC § 10344(e).) 13 1 Page Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 22. Public Works and Construction Without limiting the generality of Section 21.a., Sub -Recipient agrees to ensure compliance with all applicable legal authority regarding construction standards and requirements, including but not limited to the following: a. Labor Code Requirements Sub -Recipient is hereby put on notice that the one or more of the Projects under the MOU may qualify as a public works project and Sub -Recipient will therefore be required to determine whether the Project falls under a classification that would require payment of prevailing wages. Services constituting public works are described in California Labor Code Sections 1720-1861, as may be amended or recodified by legislative action from time -to -time. ii. If a Project qualifies as a public works project, Sub -Recipient shall be the Awarding Body for the public works project and required to comply with all requirements applicable to the Awarding Body. iii. If Sub -Recipient or its Consultant(s) will perform services that require payment of prevailing wages, they are required to register with the California Department of Industrial Relations (DIR) in order to be compliant with the law. Neither Sub -Recipient nor its Consultant(s) may work on a public works project without a current and active DIR registration. iv. In the event that Sub -Recipient or its Consultant(s) engages in the performance of a public work under this MOU as defined by Labor Code Section 1770 et seq., Sub -Recipient and its Consultant(s) shall be required to cause such employees who are entitled to prevailing wages, to be paid the required wage amounts pursuant to applicable state law. Sub - Recipient and its Consultant(s) shall ensure compliance with the State of California's General Prevailing Wage Rate requirements in accordance with California Labor Code, Section 1770, and all Federal, State, and local laws and ordinances applicable to the work. v. Sub -Recipient further acknowledges that any work that qualifies as a public work within the meaning of California Labor Code Section 1720 shall require Sub -Recipient and its Consultant(s) to comply with the provisions of California Labor Code Sections 1775 et seq. Sub -Recipient agrees to ensure compliance with Labor Code Section 1776 regarding retention and inspection of payroll records and noncompliance penalties, Labor Code Section 1777.5 regarding employment of registered apprentices, and Labor Code Section 1813 regarding forfeiture for violations of the maximum hours per day and per week provisions contained in the same chapter. b. Sub -Recipient shall comply with all applicable federal, state, and local procurement requirements for public works and construction projects and shall advertise, open bids, award, and approve all construction contracts in accordance with the California Public Contract Code and the California Labor Code. 14 1 Page Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 c. All construction contracts for the Projects shall be administered and managed by Sub - Recipient. Sub -Recipient shall prepare or have prepared a detailed schedule of performance for the Projects, ensuring that all construction is completed within the timeline allowed by the MOU. Sub -Recipient shall be responsible for requiring the construction contractor to furnish any applicable labor and material bonds and payments and performance bonds naming the Sub - Recipient as obligee, and SCAG as additional obligee, or an insurance policy in lieu of such bonds. d. Sub -Recipient agrees to procure any and all permits, licenses and approvals necessary to complete the Projects, including those necessary to perform design, construction, operation and maintenance, and to comply with all California Environmental Quality Act requirements applicable to the Projects. Sub -Recipient shall pay all charges and fees and give all notices necessary or incidental to the Projects. e. Sub -Recipient shall prepare, or have prepared, all plans, specifications and estimates for the Projects and ensure that the Projects comply with all applicable federal and state accessibility requirements, including but not limited to the Americans with Disabilities Act, including its implementing regulations at 24 CFR Part 8 and any amendments, and California Government Code Section 4450, and applicable requirements and guidance provided in Title 24 of the California Code of Regulations, for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability. f. Sub -Recipient shall conduct all necessary due diligence for the Projects, including but not limited to performing necessary environmental assessments/review of environmental hazard reports, conducting engineer/geotechnical review, commissioning title reports to identify and evaluate the condition of title and encumbrances on the subject property, determining the entity(ies) with site control, including whether any third parties have ownership or site control rights, and determining the suitability for the Project. g. Sub -Recipient shall ensure any contractors or subcontractors are paid in accordance with applicable laws and regulations. h. Sub -Recipient shall comply with the procedure set forth in Public Contracts Code Section 9204 for processing contractor claims, paying undisputed amounts, and requiring mediation of disputed amounts. Sub -Recipient shall be responsible for ensuring ongoing maintenance of the Projects after completion. SCAG shall not be responsible for ongoing maintenance of the Projects after completion. 23. Conflict of Interest The Parties shall comply with all applicable federal and state conflict of interest laws, regulations, and policies. 15 1 Exhibit B — Flow -Down Provisions Cooperative Agreement No. C-3-3087 24. Independent Contractor Sub -Recipient and its Consultant(s) shall be independent contractors in the performance of this MOU, and not officers, employees, or agents of SCAG. 25. Assignment Neither Party shall assign any rights or interests in this MOU, or any part thereof, without the written consent of each Party to this MOU, which consent may be granted, withheld or conditioned in the consenting Party's sole and absolute discretion. Any assignment without such written consent shall be void and unenforceable. The covenants and agreement of this MOU shall inure to the benefit of and shall be binding upon each of the Parties and their respective successors and assignees. 26. Release of Information Sub -Recipient shall not release any information or Work Products to a third party or otherwise publish or utilize any information or Work Products obtained or produced by it as a result of or in connection with the performance of services under this MOU without the prior written authorization of SCAG, except as provided under this MOU or as required by law (including, without limitation, pursuant to the California Public Records Act). All public -facing communications materials relating to this MOU or its subject matter shall acknowledge SCAG. Communications materials include, but are not limited to, site signage, printed information materials, print and online publications, websites, advertisements, video, public service announcements, social media postings, events, media advisories, news releases, and all other related materials. To ensure consistency of public information about SCAG programs and funded work products, Sub -Recipient is required to notify and coordinate with SCAG's Manager of Media & Public Affairs or a specified designee on any media inquiries or plans for proactively providing information to media outlets. All communication materials must be provided to SCAG prior to completion so that inclusion of this element can be confirmed. SCAG will reply within three business days; if no reply is received, the Sub -Recipient can proceed without comments. SCAG Communication Contact: Alisha James james@scag.ca.gov (213) 236-1884 16 1 Page