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HomeMy WebLinkAbout55A - RESO - ABC FUNDSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 7, 2015 TITLE: RESOLUTION AND APPROPRIATION ADJUSTMENT ACCEPTING DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL FUNDS {STRATEGIC PLAN NO. 1, 313} 1 CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: F.W112004f ❑ As Recommended ❑ As Amended ❑ Ordinance on 1't Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Approve an appropriation adjustment recognizing $99,500 in Department of Alcoholic Beverage Control Grant funds in the grant revenue account and appropriate same to the grant expenditure account. 2. Adopt a resolution authorizing the City Manager to enter into a one -year agreement with the Department of Alcoholic Beverage Control (ABC), and execute any assurances and /or documents required for said agreement for the purpose of financing the ABC Grant Assistance Program (GAP). 3. Authorize the City Manager and Clerk of the Council to execute the attached one -year agreement with the Department of Alcoholic Beverage Control (ABC) to fund the ABC Grant program, for the period of July 1, 2015 through June 30, 2016, for an amount not exceed $99,500, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION The Santa Ana Police Department was successful in obtaining a FY 2015 -16 Department of Alcoholic Beverage Control (ABC) Grant Assistance Program (GAP) grant to mitigate alcohol related crime and provide a safer environment in the areas around licensed establishments. The City of Santa Ana has 397 active retail licenses issued by the Department of Alcoholic Beverage Control (ABC). The funds provided by the grant will allow the Santa Ana PD to accomplish the following goals: 1. Reduce the number of alcohol related crimes within the City 2. Identify and successfully prosecute ABC licensed establishments that violate the law 3. Provide a safer environment in the areas around licensed establishments for residents and visitors 4. Reduce the demand on limited resources caused by alcohol related incidents throughout the City 55A -1 Department of Alcoholic Beverage Control Grant July 7, 2015 Page 2 These goals will be attained by working in conjunction with our local ABC office and conducting programs that have proved successful in cities throughout California in deterring alcohol related offenses. These programs will encompass working with ABC licensed establishments to educate them on how to reduce alcohol related crimes at their place of business. The grant will also provide funds for SAPD problem oriented policing officers to hold meetings with neighborhood community groups in order to uncover possible problems related to ABC licensed establishments and discuss enforcement strategies. The services funded by this grant will be completed primarily by the SAPD Special Enforcement Team and will not affect normal patrol functions. The one -year agreement will commence on July 1, 2015 and end June 30, 2016. The $99,500 will be used for officer overtime ($92,500), training ($2,000), and operating materials and supplies ($5,000). STRATEGIC PLAN ALIGNMENT Approval of these items assists the City in meeting Goal #1 Community Safety, Objective #3 (promote fiscal accountability to ensure financial responsibility at all levels of the organization), Strategy B (promote ongoing efforts to obtain grant funding for activities that will assist in preventing, enforcing and reducing criminal activity and traffic collisions). FISCAL IMPACT The appropriation adjustment will recognize $99,500 in Department of Alcoholic Beverage Control Grant funds in revenue account (no. 12814002 52025), and appropriating same to expenditure account (no. 12814415 - various), for the FY 2015 -16 fiscal year. Exhibit 1: Resolution 2: Agreement APPROVED AS TO FUNDS AND ACCOUNT: Executive Director Finance and Management Services Agency 55A -2 LR 7/8/15 RESOLUTION NO. 2015 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE CITY MANAGER, AND THE CHIEF OF POLICE OR HIS DESIGNEE TO OBTAIN CALIFORNIA DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL GRANT FUNDS IN THE AMOUNT OF $99,500 AND TO EXECUTE AN AGREEMENT WITH THE DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL FOR USE OF THOSE FUNDS AND EXECUTE ANY DOCUMENTS OR ASSURANCES NECESSARY FOR OBTAINING THE GRANT FUNDS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The State of California Department of Alcoholic Beverage Control ( "ABC') has a Grant Assistance Program ( "GAP ") for 2015 -2016. As part of the GAP, local law enforcement agencies can submit enforcement plans and request funding allocations under the GAP to assist with enforcement in priority considerations, including but not limited to, service areas where there is a high crime rate and /or an identifiable alcohol- related problems associated with ABC licensed establishments and for agencies interested in obtaining training on ABC education, prevention and enforcement measures which can be carried out after the grant cycle has been completed. B. The Santa Ana Police Department submitted a grant application for funding to reduce the number of alcohol related crimes within the City of Santa Ana, identify and successfully prosecute ABC licensed establishments that violate the law, provide a safer environment in the areas around licensed establishments for residents and visitors, and reduce the drain on limited resources caused by alcohol related incidents throughout the City. C. The City of Santa Ana has been allocated $99,500 in funds under the ABC Grant Assistance Program for 2015 -2016. Exhibit 1 Resolution No. 2015 -XXX 55A -3 Page 1 of 3 Section 2. The City Council of the City of Santa Ana hereby authorizes the City Manager and Chief of Police or his designee, on terms acceptable to the City Attorney, to execute an Agreement with the ABC for use of the 2015 -2016 GAP funds in an amount not to exceed $99,500 and execute any other documents or assurances that are necessary for obtaining the grant funds. Section 3. The City Council of the City of Santa Ana hereby authorizes and directs the City Manager and /or the Chief of Police or his designee, to prepare invoices to ABC to recoup costs pursuant to the guidelines set forth in the Agreement, grant conditions and terms. Section 4. The City Council of the City of Santa Ana hereby approves an Appropriation Adjustment recognizing the 2015 -2016 Alcoholic Beverage Control Department Grant Assistance Program funds in the amount of $99,500 and appropriates the same in the Alcoholic Beverage Control Department Grant Assistance Program expenditure accounts. Section 5. The City Council of the City of Santa Ana hereby agrees that any liability arising out of the performance of the Agreement for ABC 2015 -2016 GAP funds shall be the responsibility of the grant recipient and the authorizing agency. The City Council recognizes that the State of California and ABC disclaim responsibility for such liability. Section 6. The City Council of the City of Santa Ana hereby agrees that the grant funds under this Agreement shall not be used to supplant expenditures controlled by this body. Section 7. This Resolution shall take effect immediately upon its adoption by the City Council and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 7th day of July, 2015. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Cx U t4 �(9t l i Laura A. Rossini Senior Assistant City Attorney Miguel A. Pulido Mayor 55A -4 Resolution No. 2015 -XXX Page 2 of 3 AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2015 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana 55A -5 Resolution No, 2015 -XXX Page 3 of 3 'P�PM =LM= ALEQ C(]NCWIMEFlSFRVICES Ado HtlIISMAU[gIf^.-`(.,, Ftlm adtl (3 9�owA ,fl' 4'Ayy=tpp( DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROLS 3927 Lennane Drive, Suite 100 Sacramento, CA 95834 (916) 419 -2500 FAX (9 16) 419 -2599 .- June 9, 2015 Chief Carlos Rojas Santa Ana Police Department 60 Civic Center Plaza Santa Ana, CA 92702 Subject: Grant Contract 15G -LA38 Dear Chief Rojas: Enclosed are three (3) copies of the Standard Agreement STD 213 contract to be entered into between the Department of Alcoholic Beverage Control and the Santa Ana Police Department for the total amount of $99,500. To help expedite processing, please ensure below items are completed before returning documents, 1. Sign and return all three (3) copies to my attention. Each contract must have an original signature. 2, A copy of your Governing Body's Resolution in acceptance of this funding, 3. Include your Federal Taxpayer's Identification Number here and return this document with the signed STD213's. After we receive the. above information from your agency, we will process the contract package for approval. Upon approval, we will execute a fully signed contract for your records. If you have any questions, please feel free to me contact at (916) 419 - 2572, Sincerely, Suzanne Pascual Grant Coordinator Enclosures Cc: Commander Ruben Ibarra, Project Director (enclosure not included) Exhibit 2 55A -7 STATE OF CALIFORNIA ! STAODAF�D AGREEMENT SID 213 (Rev 06(05) AGREEMENT NUMS'u-R 18G•LA38 _ REGISTRATION NUMSER 1. This Agreement Is entered into between the State Agency and the Contractor named below: ............. -- - -- _ STATE ACENCY'S NAME DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL. CONrNACTOR'SNAME �- I City of Santa Ana through the Santa Ana Police Department 2, The term of this July 1, 2015 through June 30, 2016 Agreement Is: 3. The maximum amount $ 99,500 of this Agreement is: 4. The parties agreel to comply with the terms and conditions of the following exhibits which are by this reference made a part of the Agreement, Exhibit A — Scope of Work _ 4 page(a) Exhibit B — Budget Detail and Payment Provisions 3 page(s) Exhibit C* — General Terms and Conditions GTC 610 Check mark one item below as Exhibit D: Exhibit - D Special Terms and Conditions (Attached hereto as part of this agreement) 1 page($) Exhibit - D* Special Terms and Conditions Exhibit E — Additional Provisions page(s) Items shown with an Asterisk O, are hereby incorporated by reference and made part of this agreement as if attached hereto. These documents can be viewed at tyrywdgs . ggvl ofs7Resources ISLgtidardContracthanauaaoas IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. CONTRACTOR CONTRACTOR'S NAME (Ifother than an individual, state, . whether a corporation, partnership, atr,.) Citv of Santa Ana throuah the Santa Ana Police Department BY(Authariz aBn treJ '.�, a,ury /yejulun uqi y)wv PRINTED NAME AND TITLE OF PERSON SIGNING Carlos Rojas, Chief ADDRESS 60 Civic Center Plaza Santa Ana, CA 92702 STATE OF CALIFORNIA AGENCY NAME Department of Alcoholic Beverage Control BY (AUthariZed Signature) DATE SIGNED(no nor Hype) PRINT ED NAME AND TITLE OF PERSON SIGNING Ed Jimenez, Assistant Director, Administration ADDRESS 3927 U 4'm A � vt � Laura A, Rossini Senior Assistant City Attorney to CA 95834 y • California Department of General Services Use Only ® Exempt per: SCM 4.04.(A)(3) SCOPE OF WORK Summary: Exhibit A The Santa Ana Police Department (SAPD) serves the City of Santa Ana which has a population of approximately 334,000. The Department serves a densely populated community with a median age of 29,1 years old according to the 2010 Census. This is the youngest median age of any city over 250,000 people in the state. Currently, our agency consists of 299 sworn officers, led by the Chief of Police, Carlos Rojas, and three Deputy Chiefs, nine Commanders, 41 Sergeants, and 245 officers. We also operate our own 512 bed jail, staffed by 93 non -sworn correctional officers, The Department has four bureaus (Administration, Investigations, Field Operations, and, Jail) and the Office of the Chief of Police, The City is divided in four geographical districts (Northeast, Southeast, Southcoast, and Westend). We have a Special Enforcement Team (SET) comprised of 18 officers that focuses on duality of life issues which includes dealing with alcohol related crimes as well as narcotics, gang, and vice offenses. The City of Santa Ana is 27.27 square miles located in an urban setting. According to the 2013 census, our population of 334,000 is approximately 78% Hispanic, 9.2 %o White, 1.5 % Black, 1% American Indian, and 10.5% Asian; approximately 30.7% of our population is under l8 years of age and approximately 53.6% of the population is between 18 and 65 years of age. Santa Ana is the County seat and second most populous city in Orange County. The core of the city is the downtown area, which contains retail stores, restaurants, bars and housing. This is also home to the Santa Ana Civic Center, which is a dense campus of administrative buildings for the city, county of Orange, state, and federal agencies. There are a total of 397 active retail licenses issued in Santa Ana by the California Department of Alcoholic Beverage and Control (ABC). There are 168 off -sale licenses and 229 on -sale licenses issued to establishments in our city by ABC. In order to accomplish our goals and objectives, we are requesting $99,500 in grant funding. The funds provided by the grant will allow the Santa Ana Police Department to accomplish the following goals: 1) Reduce the number of alcohol related crimes within the City of Santa Ana. 2) Identify and successfully prosecute ABC licensed establishments who violate the law. 3) Provide a safer environment in the areas around licensed establishments for residents and visitors. 4) Reduce the drain on limited resources caused by alcohol related incidents throughout the city, These goads will be attained by completing the following objectives: • Conduct at least 20 discretionary undercover enforcement operations at identified ABC licensed establishments to enforce ABC violations and underage drinking. • Conduct at least 5 MINOR DECOY programs at ABC licensed establishments. • Conduct at least 3 roll call trainings to our patrol officers regarding ABC laws and how to enforce them. • Coordinate and conduct 5 IMPACT (Informed Merchants Preventing Alcohol Related Crime Tendencies) operations to educate 'licensees on how to reduce alcohol related crimes in their establishments, s Organize at least five (5) community meetings; hold an ask/answer session regarding possible problems related to ABC licensed establishments. This will be done in conjunction with our regular neighborhood meetings attended by problem oriented policing officers. 55A -9 Exhibit A • Coordinate and conduct 10 "Trap Door" operations. • Conduct 10 "Shoulder Tap" operations at ABC establishments identified as problematic. • Schedule snd coordinate 2 LEADgrograrns throughout the city, • Work alongside ABC agents to enforce alcohol related violations and successfidly prosecute those ABC licensed establishments who operate outside the legal parameters. Problem Statement: Funding of this project will allow the Santa. Ana Police Department to address alcohol related concerns throughout our city. There are 3 97 active retail licenses issued in Santa Ana by the California Department of Alcoholic Beverage and Control (ABC). There are 168 off -sale licenses and 229 on -sale licenses issued to establishments in oiu city by ABC. Several of these locations have become problem establishments and generate multiple calls for service or have been alleged to sell alcohol to minors, We have assisted ABC agents in our city as they enforce the law at several problematic bars. These problem establishments identified by ABC agents, along with any other locations that are discovered to be in violation, will continue to be the focus in the fight to reduce alcohol- related incidents, SAPD Special Enforcement Team (SET) recently participated in the ABC state -wide "Shoulder Tap" operation in cooperation with our local ABC agents. The Santa Ana Police Department regularly receives complaints from concerned citizens, business owners, and others of alcohol related problems such as loitering, public intoxication, assaults, property crimes, driving Linder the influence and alcohol related traffic collisions. Our intent is to use the ABC funding to fight these types of alcohol related crimes which drain our resources and adversely affect our residents. The number of calls for service in which the consumption of alcohol is often a contributing factor is significant. The fellowhig are some calls for service statistics for January 201.4 through December 2014 that demonstrates the problem the City of Santa Ana is facing; • Driving under the influence 1,650 e Drunk in public 1,774 Battery 1,404 • Assault 557 • Domestic Violence 4,905 • Subjects causing a disturbance 6,457 • Loud music 4,956 + Family disturbance 1,873 • Loud party 1,864 Most ABC licensed establishments in our city are responsible and adhere to the law; however, there are some which strain our limited resources clue to excessive calls for service. There are 6 ABC on -sale licensed establishments that generated 237 calls for service daring 2014, which equates to approximately one call for service every 1.5 days, The beginning of 2015 has not shown a decrease in activity as there was a homicide at one of the identified locations. There are also noticeable problems occurring at out ABC off -sale establishments that affect quality of life issues of our residents, There have been and continue to be numerous complaints of minors both buying and getting adults to buy them alcoholic beverages from many of our liquor stores. Due to staffing shortages and limited overtime funds, we are unable to give this problem the attention it deserves. The Grant will be used to enforce laws at ABC licensed establishments and combat alcohol related public violations in an effort to peep our youth safe. 55A -10 Prefect Description: Eyhibit A If successful in obtaining the ABC grant, SAPD would implement the following plan.: Conduct at least S MINOR DECOY programs at ABC licensed establishments, Funding will also be utilized to conduct minor decoy operations at off-sale establishments within our city, These establishments will be identified by SET officers who routinely have contact with community members and can gather intelligence regarding illegal sales of alcohol to minors. The minor decoy operations will be conducted with the assistance of ABC agents and within SAPD policy and procedure as well as ABC guidelines pursuant to the California Code of Regulations, Tittle 4, Division 1, Section 141 (Minor Decoy Requirements). 2. Conduct roll call training to our patrol officers regarding ABC laws and how to enforce their. SET officers, accompanied by ABC agents will present information to SAPD patrol officers during various roll call sessions, The information will instruct officers regarding pertinent ABC laws, and effective report writing to establish and prosecute ABC violations. 3. 9 establishments. After receiving pertinent training, contact and inform ABC licensed establishments of their responsibilities regarding the sale of alcohol. This will build a working relationship with these establishments to better serve the public. related to ABC licensed establishments. This will be done in conjunction with our regular neighborhood meetings attended by problem oriented policing officers. SET officers commonly attend neighborhood meetings throughout the city pertaining to neighborhood watch, gang issues, and school functions. Officers will take the opportunity to speak with residents regarding problematic ABC licensed establishments, accessibility of alcohol to minors, drinking in public and other alcohol related issues. S. Coordinate and conduct 10 "Trap Door" operations. There are various ABC on -sale licensed establislunents in our city. A few of these establishments attract minors who enter the club or bar illegally with false ID's and consume alcohol. SET officers will work directly with employees of these establishments and cite the person trying to use the false ID. b. Conduct 10 "Shoulder Tan" o nations at ABC establishments identified das problematic. In copjruiction with local ABC agents, SAPD SET officers will coordinate undercover operations in an attempt to have a minor solicit adults to buy alcohol beverages for them at ABC licensed establishments. The undercover operation will be within the policy and procedures of SAPD as well as ABC guidelines pursuant to the California Code of Regulations, Title 4, Division 1, Section 141 (Minor Decoy Requirements), 7. Schedule and coordinate 2 LEAD programs throtigheut the city. SET officers will organize and with the assistance of local ABC agents, provide a preventive and educational program pertaining to alcohol responsibility and the law. Our state of the art police facility building has a community room which could hold the attendees of the LEAD program we host. 0 55A -11 SET officers will work hand in hand Exhibit A with ABC to deter alcohol related offenses by conducting operations using proven strategies in order to identify violations and prosecute cases against ABC licensed establishments which continually violate alcohol related laws. During the project period, SAPD will evaluate our progress on a continuous basis and ask for local ABC input so that we attain the desired results. SET officers will maintain all reports and data related to the ABC grant and will share the information with ABC on a continuous basis. Protect Personnel: The services funded by this grant will be completed primarily by the SAPD Special Enforcement Team (SET). SET is a unit staffed by sworn officers who concentrate their efforts an solving community quality of life issues, SET is not subject to radio calls, which allows them to direct efforts toward specific complaints from the community, Officers from this detail regularly attend community meetings and address the public's concerns. SET officers enforce laws pertaining to vice, narcotics, and gangs through a close working relationship with the community. Each officer on the detail has been chosen to be a member of SET based on their expertise, work ethic, and demonstrated high level of professionalism, Many of our officers have experience working in an Lndercover capacity as well as coordinating and supervising enforcement operations. The Santa Ana Police Department recently reorganized adding capability to SET units to handle all vice complaints, including violations involving ABC licensed, businesses. The Santa Ana Police Department has long enjoyed an excellent working relationship with ABC agents. Through our established pwtnership we will accomplish our goals as set forth in this grant. I am certain our combined. efforts will have a positive and long- lasting effect in our city. For each operation under this grant, we will utilize 3- 8 officers primarily from SET and we will be working in uniform as well as in an undercover capacity in 4 -8 hour increments. Utilizing undercover personnel will give us the advantage and we will be able to gather evidence on possible ABC, narcotic, and vice violations. The Santa Ana Police Department wilt work collaboratively with ABC agents to assist in our operations, The following members of the SAPD Special Enforcement Team will be involved with this project: Cm n under Ruben Ibaixa #2174 Police Officer Jorge Arroyo #3038 Police Officer David Garcia #3231 Police Officer Joe Castellanos 93080 Police Officer Nicole Quijas 92958 Police Officer Greg Beaumarchais #3265 Police Officer Gabe Gutierrez #3252 Police Officer Judith Valdez 93243 Police Officer Brandon Sontag #3078 Corporal Gonzalo Garcia #2222 Corporal Jose Mendoza #2934 Corporal Michael Kuplast #1839 Police Officer Chris Shynn #3238 Police Officer Sonia Rojo 43241 Police Officer Sal Lopez #3230 Police Officer Ryan Sbifflett 43264 Police Officer Damian Moreno #3196 Police Officer Duran Greaver #3057 55A -12 BUDGET DETAIL Exhibit B BUDGET CATEGORY AND LINE-ITEM DETAIL COST (Round budget amounts to nearest dollar) A. Personnel Services (Straight Time Salaries, Overtime, and Benefits) - I-- ---- ------- - ---- - - -- - -----------­­- AA Straight Time N/A A.2 Overtime Corporal: Overtime Rate $80 X 500 hours $40,000 Officer: Overtime Rate $75 X 700 hours $52,500 A.3 Benefits all personnel combined N/A ----------------- TOTAL PERSONNEL SERVICES $92,500 B. Operating_Kjp.enses m _(maxirnu $2,500) . . . . ...... ..... . ...... $2,500 Money for undercover purchases of alcohol and narcotics -------- ----------- - ------ ....... TOTAL OPERATING EXPENSES ------- $2,500 C. $2,500) - .1 (,Kiiach receipts for aifcq'u-.'ip"'mcnt purchases to monthly billing invoice) $2,500 Body Wire with receiver. .... ....... .... TOTAL EQUIPMENT .......... ­­__ .. ... .... $2,500 D. Travel Expense/Registration Fees (maximum $2,000) (Registration fee for July 2015 GAP Conference attendee is $225 each) $450 Travel, per diem, and lodging for the July 2015 ABC GAP confitewe $1,550 ..... . . ... _­­ ..... TOTAL TRAVEL EXPENSE .... $2000 TOTAL BUDGET DETAIL COST, ALL CATEGORIES $99,500 55A -13 PAYMENT PROVISION Page t of 2 Exhibit B INVOICING AND PAYMENT: Payments of approved reimbursable costs (per Budget Detail attached) shall be in arrears and made via the State Controller's Office. Invoices shall be submitted in duplicate on a monthly basis in a format specified by the State. Failure to submit invoices and reports in the required format shall relieve the State from obligation of payment. Payments will be in arrears, within 30 days of Department acceptance of Contractor performance, pursuant to this agreement or receipt of an undisputed invoice, whichever occurs last. Nothing contained herein shalt prohibit advance payments as authorized by Item 2100- 101 -3036, Budget Act, Statutes of 2015, 2. Revisions to the "Scope of Workc' and the "Budget Detail" maybe requested by a change request letter submitted by the Contractor. If approved by the State, the revised Grant Assistance Scope of Work and/or Budget Detail supersede and replace the previous documents bearing those names. No revision cannot exceed allotted amount as shown on Budget Detail. The total amount of the contract must remaln unchanged. 3. Contractor agrees to refund to the State any amounts claimed for reimbursement and paid to Contractor which are later disallowed by the State after audit or inspection of records maintained by the Contractor. 4. Only the costs displayed in the "Budget Detail" are authorized for reimbursement by the State to Contractor under this agreement. Any other costs incurred by Contractor in the performance of this agreement are the sole responsibility of Contractor. 5. Title shall be reserved to the State for any State - furnished or State - financed property authorized by the State which is not fully consumed in the performance of this agreement. Contractor is responsible for the care, maintenance; repair, and protection of any such property, Inventory records shall be maintained by Contractor and submitted to the State upon request. All such property shall be returned to the State upon the expiration of this contract unless the State otherwise directs. 6. Irtravel is a reimbursable item, the reimbursement for necessary traveling expenses and per diem shall be at rates set in accordance with Department of Personnel Administration rates set for comparable classes of State employees. No travel outside of the State of California shall be authorized. No travel shall be authorized outside of the legal jurisdiction of Contractor without prior authorization by the State. 55A -14 PAYMENT PROVISION Page 2 of 2 Exhibit B Prior authorization by the State in writing is required before Contractor will be reimbursed for any purchase order or subcontract exceeding $2,500 for any articles, supplies, equipment, or services to be purchased by Contractor and claimed for reimbursement, Contractor must justify the necessity for the purchase and the reasonableness of the price or cost by submitting three competitive quotations or justifying the absence of bidding. 8, Prior approval by the State in writing is required for the location, costs, dates, agenda, instructors, instructional materials, and attendees at any reimbursable training seminar, workshop or conference, and over any reimbursable publicity or educational materials to be made available for distribution. Contractor is required to acknowledge the support of the State whenever publicizing the work under the contract in any media. 9. It is understood between the parties that this contract may have been written before ascertaining the availability of appropriation of funds, for the mutual benefit of both parties, in order to avoid program and fiscal delays that would occur if the contracts were executed after that determination was made. 10. BUDGET CONTINGENCY CLAUSE - It is mutually agreed that if the Budget Act of the current year and /or any subsequent years covered tinder this Agreement does not appropriate sufficient hinds for the program, this Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to Contractor or to furnish any other considerations finder this Agreement and Contractor shall not be obligated to perform any provisions of this Agreement. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an agreement amendment to Contractor to reflect the reduced amount. Updated 1/28/15 55A -15 Exhibit D Special'Ferms and Conditions 1.. Dis utes: Any dispute concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Director, Department of Alcoholic Beverage Control, or designee, who shall reduce his decision to writing and mail or otherwise furnish a copy thereof to the Contractor, The decision of the Department shall be final and conclusive unless, within 30 days from the date of receipt, of such copy, the Contractor mails or otherwise furnishes to the State a written appeal addressed to the Director, Department of Alcoholic Beverage Control. The decision of the Director of Alcoholic Beverage Control or his duly authorized representative for the determination of such appeals shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, capricious, arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence, In connection with any appeal proceeding under this clause, the contractor shall be afforded an opportunity to be heard and to offer evidence in support of its appeal, Pending final decision of a dispute hereunder, Contractor shall proceed diligently with the performance of the contract and in accordance with the decision of the State. 2, Termination Without Cause: Either party may terminate this agreement at any time for any reason upon ten (10) days written notice. No penalty shall accrue to either party because of contract termination, Contract Validity: This contract is valid and enforceable only if adequate funds are appropriated in Item 2100 -101 -3036, Budget Act of 2015, for the purposes of this program. G. Contractor Certifications: By signing this agreement, Contractor certifies compliance with the provisions of CCC 307, Standard Contractor Certification Clauses. This document may be viewed at htW-:ZZ ww,dgs,ca.gov/ols/Resources/StandardContractLaaguagg�.aspx . If the State determines that the grant project is not achieving its goals and objectives on schedule, funding may be reduced by the State to reflect this lower level of project activity Updated 1/29115 55A -16