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HomeMy WebLinkAboutCO 2025-205 - City Manager's OfficeCONTRACT NUN!SER I 2025 - 2Q5 1 CITY OF RANCHO CUCAMONGA COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM MEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING ("Contract") is made and entered into this 1st day of July 2025, by and between the City of Rancho Cucamonga, hereinafter called "City" and the City of Rancho Cucamonga City Manager's Office hereinafter called the "Participant." The City and Participant are sometimes hereinafter referred to individually as "Party" and collectively as the "Parties." RECITALS WHEREAS, the City has entered into a contract with the United States of America, through its Department of Housing and Urban Development (HUD), to execute the City's Community Development Block Grant ("CDBG") Program, under Title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seci.), as amended (hereinafter called the "Act"); and WHEREAS, Participant is an organizational unit of City and has been selected by the City Manager to provide certain eligible services through one or more community development activities, as specified in 24 CFR 570.200 ("CDBG Program"); and WHEREAS, the City desires to memorialize and transmit the CDBG Program requirements to Participant through execution of this Contract as a means to facilitate compliance with the Act; and WHEREAS, the City has approved the provision of CDBG Program funds to be used by the Participant to provide certain services (the "Project Services") as more particularly described in the Project Description and Project Budget attached hereto as Exhibit A and incorporated herein; and WHEREAS, the Participant represents and warrants to the City that the Participant is qualified to provide the Project Services by reason of experience, preparation, organization, staffing and facilities and that it shall provide the Project Services as set forth in Exhibit A; and WHEREAS, the Participant represents and warrants to the City that it shall provide the Project Services in accordance with the Project Budget as set forth in Exhibit A. NOW, THEREFORE, in consideration of the mutual covenants herein set forth and the mutual benefits to be derived there from, the parties agree as follows: TERMS 1. CONTRACT. This Contract consists of this document and the attached Exhibit A. 2. CONTRACT ADMINISTRATION. The City Manager of the City of Rancho Cucamonga, hereinafter called the "City Manager", or the Management Analyst, hereinafter referred to as "their Designee," shall have full authority to act for City in the administration of this Contract consistent with the provisions contained herein. 3. SCOPE OF SERVICES. The Participant is to perform all the Project Services set forth in the Project Description in Exhibit A. The Participant shall perform all Project Services in accordance with this Contract, including the Recitals and Exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. It is further noted that Participant will not utilize funds under this program for Research & Development (R&D). 4. TIME OF PERFORMANCE. The Project Services shall commence on July 1, 2025 and shall be completed no later than June 30, 2026. COMPENSATION AND METHOD OF PAYMENT. For such performance of the Project Services, City shall reimburse Participant an amount not to exceed the amounts indicated in the Project Budget listed in Exhibit A ("Reimbursement Amount"), which shall constitute full and complete compensation hereunder for the Project Services. The Reimbursement Amount will only be paid if reimbursable from the federal government under the Act for the amounts indicated in the Project Budget listed in Exhibit A, or from CDBG Program Income, as described in 24 CFR 570.500(a), and accumulated as a result of this Contract. The Reimbursement Amount shall constitute reimbursement only for allowable costs incurred as a result of the Project Services. The Parties understand and agree that such reimbursement, if any, shall be conditioned upon the City's receipt of CDBG Program funds from the federal government or accumulation of CDBG Program Income, as set forth in Section 38 and as a result of this Contract, and shall not be a charge on any other funds of the City. All requests for reimbursement shall be submitted Quarterly, on a form acceptable to the City, for costs incurred under this Contract, along with one (1) set of verifiable written supporting documentation of the expenditures by the Participant for the Project Services ("Supporting Statements"), which shall be submitted to the City in such form acceptable to the City in its sole and absolute discretion. Such Supporting Statement shall be submitted prior to any payment, in whole or in part, by the City of the Reimbursement Amount. 6. BUDGET SECTION. The Participant may not exceed the amounts designated to be spent for the Project Services as outlined in the Project Budget in Exhibit A without prior written approval of the City which shall be given or withheld in the City's sole and absolute discretion. 7. COMPLIANCE WITH LAWS. Both Parties shall be bound by applicable Federal, State, and local laws, ordinances, regulations and directives as they pertain to the performance of this Contract. This Contract is subject to and incorporates the terms of the Act; 24 CFR, Part 570; 2 CFR Part 200 as applicable pursuant to 24 CFR 570.502; and the City's Municipal Code. The Participant shall comply with applicable uniform administrative requirements, as described in 24 CFR Part 570.502. The Participant shall carry out each activity in compliance with all Federal laws and regulations described in Subpart K of the CDBG regulations, 24 CFR 570.600 et seq., except that: (i) The Participant does not assume the City's environmental responsibilities described at 24 CFR Part 570.604; and (ii) The Participant does not assume the City's responsibility for initiating the review process under 24 CFR Part 52. 8. PROGRAM EVALUATION AND REVIEW. During the term of this Contract, and for a period of four (4) years thereafter, Participant shall make available for inspection by authorized City personnel, the Participant's performance, financial and all other records, including but not limited to procurement, income documentation, and consultant contracts, pertaining to performance of this Contract, and shall allow authorized City personnel to inspect and monitor the Participant's facilities and program operations. Such monitoring may include interviewing Participant staff and CDBG Program participants (beneficiaries), as required by the City. Participant shall submit all data necessary for the City to complete the Consolidated Annual Performance and Evaluation Report ("CAPER"), on a form acceptable to the City, for submission to HUD. The CAPER is part of the Five - Year Consolidated Plan ("Con Plan") which is submitted to HUD annually reporting on the progress the City has made towards meeting the goals identified in the Con Plan and One -Year Annual Action Plan. Participant also agrees to monitor program accountability and progress in accordance with HUD requirements, in the format and at the time designated by the City Manager, or their Designee. 9. NON -EXPENDABLE PERSONAL PROPERTY. The Participant shall maintain a record for each item of non -expendable property acquired with CDBG Funds in connection with the Project Services. This record shall be made available to the City upon the City's reasonable notice and request. Nonexpendable personal property means leased and purchased tangible personal property having a useful life of more than one (1) year and an acquisition cost of $10,000 or more per unit. Nonexpendable property includes tangible personal property, including, but not limited to, office equipment, as well as any funds derived from the sale or disposition of nonexpendable property. Any utilization of funds derived from the sale or disposition of nonexpendable property must have prior written approval of the City and otherwise comply with all applicable federal, state and local laws and regulations. Should this Contract be terminated or expire, the City reserves the right to determine the final disposition of nonexpendable property acquired in connection with the Project Services with CDBG funds, including funds derived therefrom. Said disposition may include taking possession of the nonexpendable property. 10. REVERSION OF ASSETS. Upon the expiration of this Contract, the Participant shall transfer to the City any remaining CDBG Program funds on hand at the time of expiration or termination and any accounts receivable attributable to the use of CDBG Program funds. Any real property under the Participant's control that was acquired or improved in whole or in part with CDBG funds in excess of $25,000 shall be either: (i) Used to meet one of the national objectives in 24 CFR 570.208 until five (5) years after termination or expiration of this Contract, or such longer period of time as is specified in Exhibit A; or (ii) Not used in accordance with paragraph 10(i) above, in which event the Participant shall reimburse the CDBG Program Fund 431 an amount of the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. Such reimbursement is not required after the period of time and under the conditions specified in subparagraph 10 (i) of the Contract. 11. PURCHASE OR LEASE OF NONEXPENDABLE PERSONAL PROPERTY. Participant shall obtain three (3) documented bids prior to purchasing or leasing any nonexpendable personal property costing over Ten Thousand Dollars ($10,000.00) per unit as approved in the Project Budget. The Participant shall purchase or lease from the lowest responsive and responsible bidder. All nonexpendable property purchased or leased pursuant to the Contract shall be properly identified and inventoried and shall be charged at its actual price, deducting all cash discounts, rebates and allowances received by Participant. This inventory shall be provided or made available to the City upon request. 12. ACCOUNTING. All CDBG Program Funds received by the Participant from the City pursuant to this Contract shall be maintained separate and apart from any other funds of the Participant or of any principal or member of the Participant in an account in a federally insured banking or savings and loan institution. The Participant must establish and maintain on a current basis an adequate accrual accounting system in accordance with generally accepted accounting principles and standards . Additionally, Participant shall comply with 2 CFR Part 200 Subpart D and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. Participant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Contract. All such records shall be clearly identifiable. Participant shall allow a representative of the City during normal business hours to examine, audit and make transcripts or copies of such records and any other documents created pursuant to this Contract. 13. AFFIRMATIVE ACTION. In addition to Section 55 below, the Participant shall make every effort to ensure that all projects funded wholly or in part by CDBG Program funds shall provide equal employment and career advancement opportunities for minorities and women. In addition, the Participant shall make every effort to employ lower income residents of the City and shall keep a record of the positions that have been created directly as a result of this project. 14. CHANGES. The City may, from time to time, request changes in the Project Services to be performed hereunder by the Participant. Such changes, including any increase or decrease in the amount of the Participant's Reimbursement Amount, must be agreed upon by and between the City and the Participant in writing by amending Exhibit A, and shall be incorporated into this Contract. 15. CHANGES IN GRANT ALLOCATION. The City reserves the right to reduce the allocation of CDBG Program funds to the Participant when the City's fiscal monitoring indicates that the Participant's rate of expenditure will result in unspent funds at the end of the program year. Changes in the grant allocation will be made after consultation with the Participant. Such changes shall be incorporated into this Contract by written amendments to Exhibit A. 16. CITIZEN PARTICIPATION. All program data as determined by the City in its sole and absolute discretion to be necessary to provide reports to citizens of the City will be made available by the Participant at the City's request. Discussions between the City and the Participant will be held often enough so that the Participant will be adequately apprised of citizen recommendations during the course of the program. Participant representatives shall be available to respond to questions and receive recommendations at local meetings when so requested by the City Manager, or their Designee. 17. REVENUE DISCLOSURE REQUIREMENT. Upon the City's request, Participant shall file with the City a written statement listing all revenue received, or expected to be received, by Participant from Federal, State, or City sources, or other governmental agencies, and applied, or expected to be applied, to offset, in whole or in part, any of the costs incurred by Participant in conducting current or prospective projects or business activities, including, but not necessarily limited to, the Project or business activity which is the subject of this Contract. Such statement shall reflect the name and a description of such business activity, the dollar amount of funding provided, or to be provided, by each and every governmental agency for each such project or business activity, and the full name and address of each governmental agency. Participant shall make available for inspection and audit to City's representatives, upon request, at any time during the duration of this Contract, and during a period of three (3) years thereafter, all of its books and records relating to the operation by it of each project or business activity which is funded in whole or in part with governmental monies, including the project(s) funded under this Contract, whether or not such monies are received through the City. All such books and records shall be maintained by Participant at a location in San Bernardino County. 18. JOINT FUNDING. In addition to the requirements of Section 17 herein, for projects in which there are sources of funds in addition to CDBG Program funds, Participant may be required to provide proof of such funding. The City shall not reimburse the Participant for any costs incurred by Participant which are paid with other funds. 19. ASSURANCES. The Participant hereby assures and certifies that it has complied with the Act, applicable regulations, policies, guidelines and requirements, and that it will comply with all applicable Federal, State and local laws and regulations as they relate to acceptance and use of Federal funds for this Federally -assisted program. Also, the Participant represents and warrants with respect to the Project Services specified in Exhibit A, that it will comply with all of the provisions of 24 CFR Part 570, as applicable. Participant further represents and warrants that it will comply with any further amendments or changes to said required assurances and certifications that during the term of this Contract it will maintain current copies of said assurances and certifications at the address specified below. 20. NOTICES. All notices shall be served in writing and delivered via mail or other electronic means. The notices to the Participant shall be sent to the following: City of Rancho Cucamonga City Manager's Office Attn: John Gillison, City Manager 10500 Civic Center Drive Rancho Cucamonga, CA 91730 john.gillison@cityofrc.us Notices, reports and statements to the City shall be delivered or sent to the Management Analyst, or their Designee at: City of Rancho Cucamonga, Planning Department Attn: Flavio Nunez, Management Analyst II 10500 Civic Center Drive Rancho Cucamonga, CA 91730 flavio.nunez@cityofrc.us Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first-class postage pre -paid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. Each party shall promptly notify the other of any change in its mailing address. 21. ASSIGNMENT. The Participant shall not assign or transfer any interest in this Contract, whether by assignment, delegation or novation, without the prior express written consent of the City. Any assignment, delegation or novation of the terms of this Contract without the prior written consent of the City shall be null and void and shall constitute a material breach of this Contract. 22. TERMINATION/SUSPENSION. This Contract may be terminated for convenience at any time by either Party upon giving thirty (30) days' notice in writing to the other Party. City Manager, or their Designee, is hereby empowered to give said notice subject to ratification by the City Council of the City of Rancho Cucamonga. The City may immediately suspend or terminate this Contract if Participant materially fails to comply with any term of this Contract, or the award which is the subject of this Contract whether stated in a federal statute or regulation, an assurance, in a State Plan or obligation, a Notice of Award, or elsewhere. Further, City may immediately terminate this Contract upon the termination, suspension, discontinuation or substantial reduction in CDBG funding for the Contract activity or if for any reason the timely completion of the work under this Contract is rendered improbable, infeasible or impossible. In such event, Participant shall be compensated for all services rendered and all necessarily incurred costs performed in good faith, in accordance with the terms of this Contract, that have not been previously reimbursed, to the date of said termination, to the extent CDBG funds are available. 23. FISCAL LIMITATIONS. Both Parties acknowledge that the United States of America, through HUD, may, in the future, place programmatic or fiscal limitation(s) on CDBG funds not presently anticipated. Accordingly, the City reserves the right to revise this Contract in order to take into account actions affecting CDBG Program funding. Notwithstanding the provisions of Section 22 herein, in the event of a CDBG funding reduction, the City may: 1) reduce the budget of this Contract, as a whole or as to a cost category; 2) limit the right of the Participant's authority to commit and spend funds; or 3) restrict the Participant's use of both its uncommitted and its unspent funds. Where HUD has directed or requested the City to implement a reduction in funding, in whole or as to a cost category, with respect to funding for this Contract, the City Manager, or their Designee, may act for the City in implementing and effecting such a reduction and in revising the Contract for such purpose. Where the City Manager has reasonable grounds to question that the Participant has materially complied with the terms of this Contract, City Manager, or their Designee, may act for the City in suspending the operation of this Contract for up to sixty (60) days, upon three (3) days' notice to Participant of their intention to so act, pending an audit or other resolution of such questions. In no event, however, shall any revisions made by the City affect expenditures and legally binding commitments made by the Participant before it received notice of such revision, provided that such amounts have been committed in good faith and are otherwise allowable, that such commitments are consistent with HUD cash withdrawal guidelines, and that the Participant is in compliance with the terms of this Contract. 24. USE OF FUNDS FOR ENTERTAINMENT, MEALS OR GIFTS. Participant represents and warrants that it will not use funds provided through this Contract to pay for entertainment, meals or gifts. 25. INDEMNIFICATION. Participant shall defend, indemnify and hold the City and its directors, officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or in equity, to property or persons, including wrongful death, in any manner arising out of or incident to any actual, alleged or negligent acts, omissions or willful misconduct of Participant, its officials, officers, employees, agents, consultants and contractors arising out of the performance of the Project Services, for this Contract, including without limitation the payment of all consequential damages and attorney's fees and other related costs and expenses. Participant shall defend, at Participant's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City and its directors, officials, officers, employees, volunteers or agents, in any such aforesaid suit, action or other legal proceeding. Participant shall reimburse the City and its directors, officials, officers, employees, volunteers and/or agents, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Participant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City and its directors, officials, officers, employees, volunteers or agents. 26. CONFLICT OF INTEREST. The Participant, its agents and employees shall comply with all applicable Federal, State, County and City laws and regulations governing conflict of interest including, but not limited to, 24 CFR Part 570.611. Participant covenants that in the performance of this Contract no person having such a financial interest shall be employed or retained by the Participant hereunder. The Participant will make available to its agents and employees copies of all applicable Federal, State, County and City laws and regulations governing conflict of interest with thirty (30) days from the Effective Date of this Contract. 27. DISCRIMINATION. (i) Participant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age, handicap, or any other classification protected by federal or state law. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. In addition to the Participant's obligations under Sections 13 and 55, the Participant shall also comply with all relevant provisions of City's minority business enterprise program, affirmative action plan or other related programs or guidelines currently in effect or hereinafter enacted. (ii) The Participant shall not discriminate on the ground of race, color, national origin or sex, exclude any person from participation in, deny any person the benefits of, or subject any person to discrimination under any program or activity related to the Project Services, or otherwise, whether in whole or in part with the CDBG Funds. 28. BUDGET MODIFICATIONS. The City Manager or their Designee, may grant budget modifications to this Contract for the movement of funds between the budget categories identified in Exhibit A, provided the modifications do not exceed the total amount of compensation under this Contract. 29. TIME OF PERFORMANCE MODIFICATIONS. The City Manager or their Designee, may within his or her sole and absolute discretion grant time of performance modifications to this Contract when such modifications: (a) Are specifically requested by Participant; (b) Will not change the project goals or Project Services (Exhibit A); (c) Are in the best interests of the City and Participant in performing the Project Services under this Contract; and (d) Do not alter the amount of compensation under this Contract. 30. AUDIT EXCEPTIONS BY STATE AND FEDERAL AGENCIES. Participant agrees that in the event the program established hereunder is subject to audit exceptions by appropriate State and Federal agencies, it shall be responsible for complying with such exceptions and reimbursing the City the full amount of City's liability to such appropriate State and Federal agency resulting from such audit exceptions. 31. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this Contract will be acting in an independent capacity and not as agents, employees, partners, joint ventures or associates of one another. The employees or agents of one party shall not be deemed or construed to be the agents or employees of the other party for any purpose whatsoever, including workers' compensation liability. Participant shall bear the sole responsibility and liability for: 1) all wages, salaries, and other amounts due such personnel in connection with their performance of this Contract; 2) all reports and obligations respecting such personnel including, but not limited to, social security taxes, income tax, withholding, unemployment insurance, and workers' compensation insurance; and 3) furnishing workers' compensation benefits to any person for injuries arising from or connected with services performed on behalf of the Participant pursuant to this Contract. 32. AMENDMENTS/VARIATIONS. This Contract, with Recitals, Exhibits and attachments, embodies the whole of the agreement of the Parties hereto and supersedes all prior negotiations, understandings or agreements. There are no oral agreements not contained herein. Except as herein provided, any addition to or variation of the terms of this Contract shall not be valid unless made in the form of a written amendment of this Contract formally approved and executed by both Parties. 33. ACQUISITION OF SUPPLIES AND EQUIPMENT. The Participant may purchase necessary supplies and equipment from a related agency/organization only if: (a) prior authorization is obtained in writing from the City; (b) no more than maximum prices or charges are made and no more than minimum specifications are met, as provided in writing by the City; (c) a community related benefit is derived from such Participant related acquisition; and (d) no conflict of interest for private gain accrues to the Participant or its employees, agents or officers. 34. MONITORING AND EVALUATION. The City will monitor, evaluate and provide guidance to the Participant in the performance of this Contract. Authorized representatives of the City and HUD shall have the right of access to all activities and facilities operated by the Participant under this Contract. Facilities include all files, records, and other documents related to the performance of this Contract. Activities include attendance at staff, board of directors, advisory committee and advisory board meetings, and observation of on -going program functions. The Participant will ensure the cooperation of its staff and board members in such efforts. The City Manager or their designee may conduct program progress reviews. These reviews will focus on the extent to which planned program has been implemented and measurable goals achieved, effectiveness of program management, and impact of the program. 35. AUDIT. The Participant's program will be audited in accordance with the City's policy and funding source guidelines. The Participant acknowledges that audits may also be conducted by Federal, State or local funding source agencies and shall comply with the audit requirements of such agencies, including but not limited to 2 CFR Part 200 Subpart F. The City or its authorized representatives shall, at all times during the term of this Contract and for a period of four (4) years thereafter, have access, for the purpose of audit or inspection, to any and all books, documents, papers, records, property, and premises of the Participant. The Participant's staff will cooperate fully with authorized auditors when they conduct audits and examinations of the Participant's program. A financial audit of the Participant's performance under this Contract shall be conducted at City's discretion. If indications of misappropriation or misapplication of the funds of this Contract cause the City to require a special audit, the cost of the audit will be encumbered and deducted from this Contract's Project Budget. Should the special audit confirm misappropriation or misapplication of funds, the Participant shall reimburse the City within thirty (30) days. In the event the City uses the judicial system to recover the funds, the Participant shall reimburse the City its legal fees and court costs in addition to awards. 36. THIS PARAGRAPH INTENTIONALLY OMITTED. 37. THIS PARAGRAPH INTENTIONALLY OMITTED. 38. PROGRAM INCOME. The City reserves the right to determine the disposition of any Program Income, as described in 24 CFR Part 570.504 (c), accumulated under the Project Services set forth in Exhibit A. Participant shall be entitled to utilize, during the Contract duration, any Program Income generated from the Project Services, as set forth in Exhibit A, specifically and exclusively for the CDBG eligible Project Services and no other expense of the Participant. Participant shall only use the program income generated under the following conditions: (1) all of the terms and conditions of this Contract shall continue in full force and effect for all Program Income generated; (2) the request for grant funds by the Participant under this Contract shall be adjusted according to 24 CFR Section 570.504 (b)(2)(i) and (ii); (3) all Program Income shall be used by the Participant for immediate cash needs for Project Services and shall be reported to the City on a monthly basis; (4) any Program Income on hand with the Participant when this Contract terminates, or received after the Contract's termination, shall be returned to the City; and (5) all Program Income received and expended shall be recorded in the Participant's accounting records and included in each audit. 39. FINANCIAL CLOSEOUT PERIOD. The Participant agrees to complete all necessary financial closeout procedures required by the City Manager or their designee, within a period of not more than fifteen (15) calendar days from the expiration date of this Contract. This time period will be referred to as the Financial Closeout period. Activities during this period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, Program Income balances and accounts receivable to the City), and determining the custodianship of records. The City is not liable to provide reimbursement for any expenses or costs associated with this Contract after the expiration of the Financial Closeout period. After the expiration of the Financial Closeout period, those funds not paid to the Participant under this Contract, if any, may be immediately reprogrammed by City into other eligible activities in the City. The City Manager, or their designee, may request a final financial audit for activities performed under this Contract at the expiration of the Financial Closeout period. 40. NEPOTISM. Participant shall not hire nor permit the hiring of any person to fill a position funded through this Contract if a member of that person's immediate family is employed in an administrative capacity by Participant. For the purpose of this section, the term "immediate family" means spouse, child, mother, father, brother, sister, brother-in-law, sister-in-law, father-in-law, mother-in-law, son- in-law, daughter-in-law, aunt, uncle, niece, nephew, stepparent and stepchild. The term "administrative capacity" means having selection, hiring, supervisory or management responsibilities, including serving on the governing body of Participant. 41. RELIGIOUS AND POLITICAL ACTIVITIES. Participant agrees that funds granted by the City under this Contract will be used exclusively for performance of the Project Services required under this Contract, and that no funds made available under this Contract shall be used to promote religious or political activities. Further, Participant agrees that it will not perform, nor permit to be performed, any religious or political activities in connection with the performance of this Contract, as required under 24 CFR Section 570.200(j). Furthermore, the Participant agrees that no funds provided, nor personnel employed under this contract, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V United States Code. 42. STAFF TRAVEL. Participant shall not incur any expenditure for travel outside of San Bernardino County unless specifically provided for and itemized in Exhibit A, without prior written approval of City. 43. USE OF FUNDS. All funds approved and allocated to Participant under this Contract shall be used solely for costs approved in the Project Budget in Exhibit A. Contract funds shall not be used as cash advancement between contracts, as security to guarantee payments for any nonprogram obligations, or as loans for nonprogram activities. Separate financial records shall be kept for each funding source. 44. REPORTS AND RECORDS. Participant agrees to maintain, prepare and submit financial, program progress, monitoring, evaluation and other reports as required by City and Federal regulations, including but not limited to 24 CFR 570.506. Program progress reports shall be submitted on a quarterly basis, in the form specified by the City Manager or their designee. Participant shall maintain, and permit on -site inspections of such property, personnel, financial and other records and accounts as are considered necessary by City to assure proper accounting for all Contract CDBG funds during the term of this Contract and for a period of five (5) years thereafter. Participant will ensure that its employees and board members furnish such information which, in the judgment of City representatives, may be relevant to a question of compliance with contractual conditions with City or granting agency directives, or with the effectiveness, legality and achievements of the program. 45. EXPENDITURES. Expenditures made by Participant in the operation of this Contract shall be in strict compliance and conformity with the Project Budget set forth in Exhibit A, unless prior written approval for an exception is obtained from City Manager or their designee. 46. FEDERAL LOBBYIST REQUIREMENTS. The Participant is prohibited by the Department of Interior and Related Agencies Appropriations Act, known as the Byrd Amendments, and 2 CFR Part 200, from using federally appropriated funds for the purpose of influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, loan or cooperative agreement, and any extension, continuation, renewal, amendment or modification of said documents. The Participant must certify in writing that they are familiar with the Federal Lobbyist Requirements and that all persons and/or subcontractors acting on behalf of the Participant will comply with the Lobbyist Requirements. Failure on the part of the Participant or persons/subcontractors acting on behalf of the Participant to fully comply with the Federal Lobbyist Requirements shall be subject to civil penalties. 47. LOBBYING CERTIFICATION. The following is applicable to projects utilizing funds received from the 2025-2026 allocations. The undersigned certify, to the best of their knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, or any employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all sub -awards at all tiers (including subcontracts, sub -grants, and contracts under grants, loans, and cooperative agreements) and that all Participants shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. 48. CERTIFICATION PROHIBITING USE OF EXCESSIVE FORCE. In accordance with Section 519 of Public Law 101-144, the Participant certifies, to the best of his or her knowledge and belief, that it has adopted and is enforcing: (1) A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and (2) A policy of enforcing applicable State and local laws against individuals physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction; 49. DRUG -FREE WORKPLACE. Participant agrees to provide a drug -free workplace by: (1) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the Participant's workplace and specifying the actions that will be taken against employees for violation of such prohibition; (2) Establishing an ongoing drug -free awareness program to inform employees about - a. The dangers of drug abuse in the workplace; b. The Participant's policy of maintaining a drug -free workplace; c. Any available drug counseling, rehabilitation, and employee assistance programs; and d. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; (3) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1 of this Section; (4) Notifying the employee in the statement required by paragraph 1 of this Section that, as a condition of employment under the grant, the employee will - a. Abide by the terms of the statement; and b. Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction; (5) Notifying the City in writing, within ten (10) calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; (6) Taking one of the following actions, within thirty (30) calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted - a. Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or b. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; (7) Making a good faith effort to continue to maintain a drug -free workplace through implementation of paragraphs 1, 2, 3, 4, 5, and 6. 50 PROJECT LOCATION(S). The site(s) for the Performance of Work in connection with the specific grant is/are; 10500 Civic Center Drive Rancho Cucamonga, CA 91730 51 RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE PLAN. The City acknowledges that Section 104(d) of the Housing and Community Development Act of 1974, also known as the Barney Frank Amendment, requires relocation assistance for displaced low-income families and requires one -for -one replacement of low/moderate income dwelling units that are demolished or converted to other use. When CDBG Program funds are used in a project, including financing for rehabilitation, or project delivery costs, Section 104(d) is triggered. CDBG Regulations further describe the requirements under 24 CFR Section 570.606 Displacement, Relocation, Acquisition, and Replacement of Housing. Participant must adopt and make public a Residential Anti -displacement and Relocation Assistance Plan as part of its administrative requirements to HUD. Before Participant enters into a contract committing it to provide funds for any activity that will directly result in the demolition, or conversion to another use, of low/moderate-income dwelling units, it must make public and submit to HUD the information as described in Section 24 CFR 570.606, et seq. Participant agrees to comply with the (a) Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR Part 24 and 24 CFR 570.606(b); the requirements of 24 CFR 570.606(c) governing the Residential Anti -displacement and Relocation Assistance Plan under section 104(d) of the HCD Act; and (c) the requirements in 24 CFR 570.606(d) governing optional relocation policies. The Participant shall provide relocation assistance to displaced persons as defined by 24 CFR 570.606(b)(2) that are displaced as a result of acquisition, rehabilitation, demolition or conversion for a CDBG-assisted project. The Participant shall comply with applicable City ordinances, resolutions and policies concerning the displacement of persons from their residences. 52. THIS PARAGRAPH INTENTIONALLY OMITTED. 53. SECTION 3. In accordance with the Housing and Urban Development Act of 1968, the Participant and, where applicable, its contractor(s) and subcontractor(s) shall comply with Section 3 regulations as described in 24 CFR Part 75. 54. AMERICANS WITH DISABILITIES ACT. The Americans with Disabilities Act (42 U.S.C. 12131; 47 U.S.C. 155.201, 218 and 225) (ADA) provides comprehensive civil rights to individuals with disabilities in the areas of employment, public accommodations, State and local government services, and telecommunications. It further provides that discrimination includes a failure to design and construct facilities for first occupancy after January 26, 1993 that is readily accessible to and usable by individuals with disabilities. Further, the ADA requires the removal of architectural barriers and communication barriers that are structural in nature in existing facilities, where such removal is readily achievable- -that is, easily accomplishable and able to be carried out without much difficulty or expense. The Participant shall comply with the ADA. 55. CIVIL RIGHTS. A. Civil Rights Compliance Participant agrees to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063 and Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination Participant will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or status with regard to public assistance. Participant will take affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. Participant agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause. Land Covenants This contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and 24 CFR 570.601 and 602. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this contract, the Participant shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the City and the United States are beneficiaries of and entitled to enforce such covenants. The Participant, in undertaking its obligation to carry out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate. 4. Section 504 The Participant agrees to comply with any Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which prohibits discrimination against the handicapped in any Federally assisted program. The City shall provide the Participant with any guidelines necessary for compliance with that portion of the regulations in force during the term of this contract. B. Affirmative Action Approved Plan Participant agrees that it shall be committed to carry out pursuant to the City's specifications an Affirmative Action Program in keeping with the principles as provided in President's Executive Order 11246 of September 24, 1965 and subsequently amended. The City shall provide Affirmative Action guidelines to the Participant to assist in the formulation of such program. The Participant shall submit a plan for an Affirmative Action Program for approval prior to the award of funds. 2. Women and Minority Owned Businesses (WIMBE) Participant will use its best efforts to afford minority- and women -owned business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this contract, the term "minority and female business enterprise" means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish- speaking, Spanish surnamed or Spanish -heritage Americans, Asian -Americans, and American Indians. Participant may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. Access to Records Participant shall furnish and cause each of its own subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the City, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. 4. Notifications Participant will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or worker's representative of the Participant's commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. Equal Employment Opportunity and Affirmative Action Participant will, in all solicitations or advertisements for employees placed by or on behalf of the Participant, state that it is an Equal Opportunity or Affirmative Action employer. Subcontract Provisions Participant will include these provisions in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own Participants or subcontractors. C. Labor Standards Participant agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis -Bacon Act as amended, the provisions of Contract Work Hours, the Safety Standards Act, the Copeland "Anti -Kickback" Act (40 U.S.C. 276, 327-333) and all other applicable federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Contract. Participant shall maintain documentation which demonstrates compliance with hour and wages requirements of this part. Such documentation shall be made available to City for review upon request. Participant agrees that, except with respect to the rehabilitation of residential property designed for residential use for less than eight (8) households, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair of any building or work financed in whole or in part with assistance provided under this Contract, shall comply with federal requirements adopted by City pertaining to such contract, and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR, Parts 3, 1, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve Participant of its obligation, if any, to require payment of the higher wage. Participant shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph, for such contracts in excess of $10,000.00. 56. ENVIRONMENTAL CONDITIONS A. Air and Water Participant agrees to comply with the following requirements insofar as they apply to the performance of this contract: -Clean Air Act, 42 U.S.C., 7401, et seq. -Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 1251 and Section 1318, and all regulations and guidelines issued thereunder. -Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 50, as amended. -National Environmental Policy Act of 1969. -HUD Environmental Review Procedures (24 CFR, Part 58). -California Environmental quality Act of 1974. B. Flood Disaster Protection In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001), Participant shall assure that for activities located in an area identified by FEMA as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes (including rehabilitation). C. Lead -Based Paint Participant agrees that any construction or rehabilitation of residential structures with assistance provided under this contract shall be subject to HUD Lead -Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35. Such regulations pertain to all HUD -assisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may include lead -based paint. Such notification shall point out the hazards of lead -based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead -based paint poisoning and the advisability and availability of blood lead level screening for children under seven. The notice should also point out that if lead -based paint is found on the property, abatement measures may be undertaken. D. Historic Preservation Participant agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR, Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this contract. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, state, or local historic property list. 57. CONFIDENTIALITY OF REPORTS. Participant shall keep confidential all reports, information and data received, prepared or assembled pursuant to the performance of the Contract. Such materials shall not be made available to any person, firm, corporation or entity without the prior written consent of the City. Such materials shall not, without prior written consent of the City, be used by the Participant for any purposes other than the performance of the Project Services. 58. SAFETY STANDARDS AND ACCIDENT PREVENTION. The Participant shall comply with all applicable federal, state local laws, rules and regulations governing safety, health and sanitation. The Participant shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. The Participant shall provide all safeguard, safety devices and protective equipment and take any other needed actions, as its own responsibility, reasonably necessary to protect the life and health of employees on the job and the safety of the public and to protect property in connection with the performance of this Contract. 59. SEVERABILITY. In the event that any provision contained in this Contract is held to be invalid, void, or illegal by any court of competent jurisdiction, the same shall be deemed severable from the remainder of this Contract and shall in no way affect, impair or invalidate any other provision contained herein. If any such provision shall be deemed invalid due to its scope of breadth, such provision shall be deemed valid to the extent of the scope of breadth permitted by law. 60. INTERPRETATION. No provision of this Contract is to be interpreted for or against either Party because that Party or that Party's legal representative drafted such provision, but this Contract is to be construed as if it were drafted by both Parties hereto. 61. WAIVER. No breach of any provision hereof can be waived unless in writing. Waiver of any one breach of any provision shall not be deemed to be a waiver of any breach of the same or any other provision hereof. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise. 62. TERMINATION FOR IMPROPER CONSIDERATION. In addition to the provisions of Section 22, the City may, by written notice to the Participant, immediately terminate the right of the Participant to proceed under this Contract if it is found that improper consideration, in any form, was offered or given by the Participant, either directly or through an intermediary, to any City officer, employee or agent with the intent of securing the Contract or securing favorable treatment with respect to the award, amendment or extension of the Contract or the making of any determinations with respect to the Participant's performance pursuant to the Contract. In the event of such termination, the City shall be entitled to pursue the same remedies against Participant as it could pursue in the event of default by the Participant. 63. ENTIRE CONTRACT/INCORPORATION. This Contract constitutes the entire understanding and agreement of the Parties. The Recitals, the Exhibits, and other attachments constitute a material part of this Contract and are hereby incorporated herein by reference as though fully set forth herein. 64. ATTORNEYS' FEES. In the event of the bringing of an arbitration, action or suit by a Party hereto against another Party by reason of any breach of any of the terms or any intentional inaccuracies in any of the representations and warranties on the part of the other Party arising out of this Contract, the prevailing Party in such action or dispute, whether by final judgment or arbitration award, shall be entitled to have and recover all costs and expenses of suit or claim, including attorneys' fees. 65. BENEFIT. The terms of this Contract shall be binding upon and inure to the benefit of the Parties hereto and their successors and assigns. 66. COUNTERPARTS. This Contract may be executed in counterparts. When executed, each counterpart shall be deemed an original, irrespective of date of execution. Said counterparts shall together constitute one and the same Contract. 67. This Agreement may be executed electronically. Any signature (including any electronic symbol or process attached to, or associated with, a contract, agreement or other record and adopted by a Person with the intent to sign, authenticate or accept such contract, agreement or record) hereto or to any other certificate, contract, agreement or document related to this transaction, and any contract formation or record -keeping through electronic means shall have the same legal validity and enforceability as a manually executed signature or use of a paper -based recordkeeping system to the fullest extent permitted by applicable law, and the parties hereby waive any objections to the contrary. 68. LAWS GOVERNING THIS CONTRACT. This Contract shall be governed by and construed in accordance with the laws of the State of California, all applicable federal statutes and regulations as amended, and all applicable local laws. 69. NO THIRD PARTY BENEFICIARIES. The performance of the City's and the Participant's respective obligations under this Contract are not intended to benefit any Party other than the City and Participant, except as expressly provided otherwise herein. 70. USE OF RECYCLED -CONTENT PAPER PRODUCTS. To the extent practicable, Participant is encouraged to reduce the amount of solid waste deposited at the County landfills, the Participant agrees to use recycled -content paper to the maximum extent possible on the Project. IN WITNESS WHEREOF, the City Council of the City of Rancho Cucamonga has caused this Contract to be subscribed by the City Manager or their designee and subscribed by the Participant, the day, month and year first above written. CITY OF RANCHO CUCAMONGA: By: Flavio Nunez Management Analyst II Date: J u (16, 2025 PARTICIPANT: City Manager's Office By: John Gillison City Manager Date: Jul 16, 2025 RECIPIENT INFORMATION FEDERAL AWARD INFORMATION Agency Name: Federal Awarding Agency Name: City of Rancho Cucamonga U.S. Department of Housing and Urban Development Contact Information: Assistance Listing Title: Flavio Nunez, Community Development Block Grants / Entitlement Grants Management Analyst II flavio.nunez@cityofrc.us Assistance Listing Number: (909) 774-4313 14.218 Federal Award Identification Number (FAIN): B -25 -MC -06-0556 PARTICIPANT INFORMATION SUBAWARD INFORMATION Department Name: Version: Fiscal Year: City Manager's Office Original 2025-2026 Agency Type: Start Date: End Date: Public 7/1/2025 6/30/2026 Unique Entity Identifier (UEI): Indirect Cost Rate: EMSUMALW41M5 Declined indirect cost rate (0%) Tax ID Number (TIN): Funding Amount: 95-3213002 Amount Previously Approved $0 Contact Person: Emiliano Riza, Amount Approved by this Action $17,000.00 Community Program Coordinator emiliano.rizo@cityofrc.us Total Amount Approved $17,000.00 909-774-2043 Authorized Official: John Gillison, City Manager john.gillison@cityofrc.us 909-774-2000 23 ACTIVITY INFORMATION PERFORMANCE MEASUREMENT PLAN Activity Name: Start Date: End Date: Bringing Health Home 7/1/2025 6/30/2026 Eligibility Citation: Activity Description: 05Z Other Public Services Not Listed in The City of Rancho Cucamonga's Bringing Health Home (BHH) program 05A -05Y, 03T -570.201(e) exemplifies the City Council's commitment to "providing and nurturing a high quality of life for all." It aligns with the Healthy RC initiative's priority of fostering National Objective Citation: healthy eating and active living, improving the well-being of the City's most LMA Area benefit activities (less than vulnerable residents by providing access to fresh, nutritious foods such as fruits, 51%) - 570.208(a)(1)(ii) vegetables, eggs, and honey. By addressing food insecurity, the program promotes positive health outcomes for the community. Objective: Creating suitable living environments Food insecurity is a pressing challenge in Rancho Cucamonga, particularly in the southwestern region. The 2023 Quality of Life Survey revealed that food Outcome: insecurity is a top concern in this area. Half of the residents reported that Availability / Accessibility healthy food is too expensive, while a third cited a lack of skills to plan, shop for, and prepare healthy meals. The disparity is evident in the region's health statistics: residents in Southwest Rancho Cucamonga experience higher rates of R&D: diabetes (12% compared to the City average of 8%) and obesity (41% compared No to 34% citywide). These findings underscore the critical need for programs like BHH to bridge gaps in access to healthy food and improve overall community health. The BHH program directly addresses these challenges by ensuring residents have access to fresh, seasonal produce in their own neighborhoods. By alleviating the financial burden of purchasing healthy food, the program fosters long-term healthy eating habits. Data from past participants highlights its success: daily fruit and vegetable consumption increased by 25%, and 96% of participants reported significant health improvements, including increased energy and better weight management. Furthermore, 97% of participants began preparing healthy meals at home instead of eating out, demonstrating the program's role in encouraging sustainable lifestyle changes. The program's impact extends beyond dietary changes. Participants have reported reductions in high blood pressure, high cholesterol, and depression rates. By addressing both the physical and mental health challenges associated with food insecurity, BHH takes a holistic approach to enhancing community well-being. Eligible participants enroll through City Hall, ensuring that those most in need benefit from the program. This partnership eliminates cost barriers and promotes greater consumption of healthy food, contributing to improved health outcomes for participants and their families. 24 The program's implementation is carefully designed to maximize impact throughout the fiscal year. Grant funds are used to cover essential materials, including marketing materials, office supplies, and nutritious items like fruits, vegetables, eggs, and honey. The City Manager's Office administers the program as part of the City's in -kind contribution, reflecting Rancho Cucamonga's commitment to addressing food insecurity and supporting community health. Food insecurity is a complex issue that affects physical, mental, and emotional well-being. By providing access to nutritious food and empowering residents with the tools to make healthier choices, the BHH program addresses root causes and fosters long-term positive change. Its emphasis on education and behavior change equips participants with the knowledge and skills to maintain healthy habits beyond the program's duration. BHH also embodies Rancho Cucamonga's dedication to equity and inclusion. By targeting resources to areas and populations with the greatest need, the program ensures that all residents have the opportunity to lead healthier, more fulfilling lives. Performance Goal: Performance Indicator: 80 People Accomplishments % Target Date 20 25% 9/30 40 50% 12/31 60 75% 3/31 80 100% 6/30 Disbursement of grant funds shall be proportional to the Participant's progress in meeting the activity -specific performance measures outlined in the Performance Measurement Plan. The City shall not disburse funds at a rate that exceeds the Participant's demonstrated progress toward these performance targets. This requirement shall no longer apply once the Participant has achieved as least eighty percent (80%) of the specified performance measurements. 25 ACTIVITY BUDGET Item Id Category Funding Amount Disbursed Remaining 42 Supplies 25-26 CDBG $17,000.00 $0.00 $17,000.00 Totals $17,000.00 $0.00 $17,000.00 No expenses maybe incurred under this Agreement until it has been fully executed. Final reimbursement requests must be received by no later than 5:00 p.m. on July 10, 2026. Requests submitted after this deadline will not be paid. To ensure compliance with federal timeliness requirements, the Participant must submit sufficient documentation to justify reimbursement of at least seventy-five percent (75%) of the total grant funds by April 10, 2026, for expenses incurred through March 31, 2026 (the "Timeliness Test Date"). If the City is unable to reimburse at least 75% of the grant by this date, the City reserves the right to deobligate the shortfall. Any deobligated funds will be removed from this Agreement and shall not be available for reimbursement. 26 ACTIVITY REQUIREMENTS Low- and Moderate -Income Area The activity must be made available to, and have the ability to benefit all the residents in a particular area where at least 43.7 percent of the residents are low- and moderate -income persons based on current Census data. The activity must benefit all residents, including minors and adults residing in the area. Such an area need not be coterminous with census tracts or other officially recognized boundaries but must be the entire area served by the activity. The Area must be primarily residential in character. The Participant shall maintain records of the designated service area including Census Data and a Service Area Map. Additionally, records of each activity undertaken within the service area shall include a log with addresses, corresponding Census Tract Block Group numbers, date(s) of service, and a description of the activity undertaken. On a quarterly basis the Participant shall provide a report to CDBG staff indicating the activity's performance with respect to the accomplishment goals established herein. Payroll and Attendance Records The Participant shall maintain payroll and time attendance records signed by the employee and approved by the supervisor. Time and attendance records (timecards) must reflect total work time on a daily basis separated by program and/or funding source, as applicable, with hours worked on this grant shown separately from all other hours worked. Submittal of Invoices Invoices (requests for reimbursement of grant funds for costs incurred in accordance with this Agreement and the CDBG regulations) may be submitted to the City on a monthly or quarterly basis within 10 calendar days of the end of the month/quarter. Invoices must be accompanied by appropriate supporting documentation to substantiate the reimbursement. For non -personnel costs, supporting documentation shall include, at a minimum, a written description of the cost such as an invoice or receipt, proof of payment, evidence that an appropriate procurement was conducted, and that an appropriate contract was executed (as applicable). Submittal of Quarterly Performance Reports The Participant shall submit Quarterly Performance Reports on a form acceptable to the City by the 10th day of the month following each quarter. For the purpose of this Agreement, the first quarter shall be July 1 -September 30, the second quarter shall be October 1 -December 31, the third quarter shall be January 1 -March 31, and the fourth quarter shall be April 1 -June 30. Failure to submit Quarterly Performance Reports by the 10th day of the month following a quarter is considered a Delinquency. The first Delinquency will result in the issuance of a letter from the City to the Participant indicating that the submittal is delinquent. A second Delinquency will result in a written finding of non-compliance with this Agreement issued from the City to the Participant. A third Delinquency will result in the issuance of a notification to the City's governing body indicating Participant's non- compliance with the Agreement. Such notification to the City's governing body may also include a recommendation to suspend or terminate the Agreement. Such a recommendation may also result in the disallowance of funds previously paid to Participant and/or a loss of the remaining grant funds. 27 Retention of Financial Records The Participant shall maintain during the term of this Agreement and for a period of four (4) years after the expiration of the Agreement, complete and adequate financial records and accounts as considered necessary by the City to assure proper accounting for all program funds and to support all program expenditures. These records and accounts shall include, but not be limited to, the following: 1) A double -entry General Ledger that supports the costs charged to the CDBG Program; 2) Records documenting procurement of goods and services; 3) Contracts for goods or services; 4) Lease or Rental Agreements; 5) Invoices; 6) Billing Statements; 7) Cancelled Checks; 8) Timecards signed by employees and supervisors; 9) Personnel Authorization Records; 10) Payroll Registers; 11) Payroll Tax Records; 12) Bank Statements; 13) Bank Reconciliations; and 14) Documentation to support the allocation of costs. Procurement (Supplies and Equipment) Supplies and/or equipment purchased with grant funds shall be procured in accordance with the methods prescribed by the Uniform Administrative Requirements found at 2 CFR Part 200. All contracts/purchases shall be made from the supplier/vendor that provides the lowest price. Sole source procurement is not permitted without prior written authorization from the City. A small/informal bid solicitation by phone or in writing may be conducted to document compliance for purchases that do not exceed the lesser of 1) the Participant's small purchase threshold, 2) the City's small purchase threshold, or 3) the Federal Simplified Acquisition threshold (currently $250,000). The procurement file shall include a written summary of not less than three (3) price/rate quotations received from vendors/suppliers. For purchases exceeding the small purchase threshold, a formal bid solicitation shall be published in a media of general circulation and other places as appropriate to facilitate and promote competition. Micro -purchase procedures may be used when the aggregate amount of the purchase does not exceed $10,000. To the maximum extent practicable, the Participant should distribute micro -purchases equitably among qualified suppliers. Micro -purchases may be awarded without soliciting competitive price or rate quotations if the Participant considers the price to be reasonable based on research, experience, purchase history or other information and documents it files accordingly. Procurement (Professional Services) Professional services such as consultants, accountants, or other independent contractors must be procured in accordance with the methods prescribed by the Uniform Administrative Requirements found at 2 CFR Part 200. Sole source procurement is not permitted without prior written authorization from the City. A small/informal bid solicitation by phone or in writing may be conducted to document compliance for contracts that will not exceed the lesser of 1) the Participant's small purchase threshold, 2) the City's small purchase threshold, or 3) the Federal Simplified Acquisition threshold (currently $250,000). The procurement file shall include a written summary of not less than three (3) price/rate quotations received from professional service providers. For contracts that exceed the Simplified Acquisition Threshold, the competitive proposals method shall be used whereby more than one source submits an offer, and either a fixed -price or cost -reimbursement type contract is awarded. Requests for proposals will: 1) Be published in a media of general circulation and identify all evaluation factors and their relative importance, 2) Proposals will be solicited from an adequate number of qualified sources to promote competition to the greatest extent feasible, 3) The Participant must include a method for conducting technical evaluations of the proposals received in the RFP and must disclose the method to be used to select successful bidder; 4) The contract award must be made to the responsible firm whose proposal is most advantageous to the program with price and other factors considered. 28 Equipment Pursuant to 2 CFR 200, property records must be maintained that include a description of the property, a serial number or other identification number, the source of property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the cost of the property, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft shall be investigated. Adequate maintenance procedures must be developed to keep the property in good condition. If the City or Participant is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return. Pursuant to 2 CFR 200, when original or replacement equipment acquired under a grant is no longer needed for the original project or program or for other activities currently or previously supported by a Federal agency, disposition of the equipment will be made as follows: (1) Items of equipment with a current per -unit fair market value of less than $10,000 may be retained, sold or otherwise disposed of with no further obligation to the awarding agency. (2) Items of equipment with a current per unit fair market value in excess of $10,000 may be retained or sold and the awarding agency shall have a right to an amount calculated by multiplying the current market value or proceeds from sale by the awarding agency's share of the equipment. (3) In cases where the City or Participant fails to take appropriate disposition actions, the awarding agency may direct the City or Participant to take excess and disposition actions. 29 AGMT-02 Memorandum of Understanding (MOU)-CMO-BHH Final Audit Report Created: 2025-07-16 By: Daniel Perez (dperez@mdg-Idm.com) Status: Signed Transaction ID: CBJCHBCAABAAmJ4VASgW7QjWeBZgdrZdR-2UTnP-NSUA 2025-07-16 "AGMT-02 Memorandum of Understanding (MOU)-CMO-BHH" History Document created by Daniel Perez (dperez@mdg-Idm.com) 2025-07-16 - 6:24:00 PM GMT- IP address: 172.116.250.233 C'-. Document emailed to John Gillison (john.gillison@cityofrc.us) for signature 2025-07-16 - 6:25:02 PM GMT Email viewed by John Gillison (john.gillison@cityofrc.us) 2025-07-16 - 6:36:03 PM GMT- IP address: 199.201.174.250 L © Document e -signed by John Gillison (john.gillison@cityofrc.us) Signature Date: 2025-07-16 - 6:36:53 PM GMT - Time Source: server- IP address: 199.201.174.250 Cy Document emailed to Flavio Nunez (flavio.nunez@cityofrc.us) for signature 2025-07-16 - 6:36:54 PM GMT Email viewed by Flavio Nunez (flavio.nunez@cityofrc.us) 2025-07-16 - 8:04:04 PM GMT- IP address: 104.47.65.254 L © Document e -signed by Flavio Nunez (flavio.nunez@cityofrc.us) Signature Date: 2025-07-16 - 8:04:57 PM GMT - Time Source: server- IP address: 199.201.174.250 O Agreement completed. 2025-07-16 - 8:04:57 PM GMT O Adobe Acrobat Sign