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HomeMy WebLinkAboutCS Child Care Resource Program Grantctry OF n,1,1�alt 1 Agenda Item No: Meeting Date: March 16, 2009 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Community Services Prepared by: Bill Scharf, Assistant Director. City Manager Approval: SUBJECT: School -Age Child Care Resource Program Grant (CSCC-8169) in the amount of $2019.00. RECOMMENDATION: Staff recommends that City Council approves the contract and adopt the resolution authorizing the City Manager to sign designated contract documents. BACKGROUND: The City of San Rafael, Child Care Division is eligible for "one-time only' funds from the State Department of Education in the amount of $2019.00 to be used for quality improvements in the school-age child care program. These funds will be used to purchase additional classroom materials and for staff training. ANALYSIS: These contract funds will provide additional resources for classroom materials and staff training that will lead to quality improvements in the school-age child care program. FISCAL IMPACT: Contract funds will provide an additional $2019.00 in revenue for the Child Care Division in the 2008-2009 fiscal year. ACTION REQUIRED: Approve the School -Age Child Care Resource Program Grant (CSCC-8169) in the amount of $2019.00 and authorize the City Manager to sign designated contract documents with the Department of Education. Ends. School -Age Child Care Resource Program Grant (CSCC-8169) FOR CITY CLERK ONLY File No.: Council Meeting: Disposition: RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING ENTERING INTO A CONTRACT (CSCC-8169) WITH THE DEPARTMENT OF EDUCATION FOR THE SCHOOL-AGE CHILD CARE RESOURCE PROGRAM AND AUTHORIZING THE CITY MANAGER TO SIGN CONTRACT DOCUMENTS IN THE AMOUNT OF $2019.00 WHEREAS, the City of San Rafael has been awarded a contract (CSCC-8169) by the California Department of Education for a grant under the School -Age Child Care Resource Program in the amount of $2,019.00 for improvements in City Child Care Division's school-age child care program; and WHEREAS, the City's Child Care Division desires to accept the grant funding in order to purchase additional classroom materials and to provide additional staff training; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael approves the contract with the California Department of Education (CSCC-$169) for a grant in the amount of $2,019.00 under the School -Age Child Care Resource Program, and authorizes the City Manager to execute the contract, a copy of which is attached hereto as Exhibit «A„ I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 16th day of March, 2009 by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ESTHER C. BEIRNE, City Clerk CALIFORNM DEPAR TMENT OF ED UCA TION 1430 NStreet F. Y 08 - 09 Sacramento, CA 95814-5901 or cnusO DATE: July 01, 2008 CONTRACT NUMBER: CSCC-8169 LOCAL AGREEMENT FOR CHILD DEVELOPMENT SERVICES PROGRAM TYPE: CCDF SCHOOL AGE RESOURCE PROJECT NUMBER: 21-2193-00-8 CONTRACTOR'S NAME: CITY OF SAN RAFAEL By signing this contract and returning it to the State, you are agreeing to use the funds identified below for the benefit of Child Care and Development Programs, serving school-age children ages five through twelve years in accordance with Exhibit B, "PROGRAM REQUIREMENTS FOR SCHOOL-AGE CHILD CARE RESOURCE PROGRAM" (available online at http://www.cde.ca.gov/fg/aa/cd), which are attached hereto and by this reference incorporated herein. The contractor's signature also certifies compliance with "Standard Provisions for State Contracts" (Exhibit A), which are attached hereto and by this reference incorporated herein. These funds shall not be used for any purpose considered nonreimburseable pursuant to the 2008/09 Program Requirements for School -Age Child Care Resource Program, the current Child Care and Development Fund Funding Terms and Conditions (FT&Cs) and Title 5, California Code of Regulations. Funding of this contract is contingent upon appropriation and availability of funds. This contract may be terminated immediately by the State if funds are not appropriated or available in amounts sufficient to fund the State's obligations under this contract. This contract is effective from July 01, 2008 through June 30, 2009. The total amount payable pursuant to this agreement shall not exceed $2,019.00. Expenditure of these funds shall be reported quarterly to the Child Development Fiscal Services (CDFS) on form CDFS-9529 with fiscal quarters ending September 30, December 31, March 31 and June 30. Quarterly reports must be submitted for reimbursement of expenditures. For non -local educational agencies, expenditures made for the period July 1, 2008 through June 30, 2009 shall be included in their 2008/09 audit due by the 15th day of the fifth month following the end of the contractor's fiscal year or earlier if specified by CDE. The audits for School Districts and County Offices shall be submitted in accordance with Education Code Section 41020. Any provision of this contract found to be in violation of federal or state statute or regulation shall be invalid but such a finding shall not affect the remaining provisions of this contract. Exhibit A, Standard Provisions for State Coritracts attached. STATE OF CALIFORNIA CONTRACTOR BY (AUTHORIZED SIGNATURE) _ BY (AUTHORIZED SIGNATURE) PRINTED NAME OF PERSON SIGNING PRINTED NAME AND TITLE OF PERSON SIGNING _ Margie Burke, Manager TITLE ADDRESS Contracts, Purchasing & Conf Svcs AMOUNT ENCUMBERED BY THIS PROGRAM/CATEGORY (CODE AND TITLE) FUND TITLE Department of General Services DOCUMENT Child Development Programs Federal use only $ 2,019 (OPTIONAL USE) 0656 FC# 93.575 PC# 000173 PRIOR AMOUNT ENCUMBERED FOR 13941-2193 THIS CONTRACT ITE1430.10.020.901 CHAPTER STATUTE FISCAL YEAR $ 0 6100-196-0890 1 268 2008 2008-2009 TOTAL AMOUNT ENCUMBERED TO OBJECT OF EXPENDITURE (CODE AND TITLE) DATE $ 2,019 702 SACS: Res -5080 Rev -8290 ATTACHMENT "q„ I hereby certify upon my own personal kn ledge t at budgeted funds are available far The period and T.B.A. NO. - B.R. NO. purpose of the expenditure stated above. SIGNATURE OF ACCOUNTING OFFICER DATE (Rev. 5/08) Exhibit A STANDARD PROVISIONS FOR STATE CONTRACTS 1. The Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Contractor in the performance of this Agreement. 2. Contractor, and the agents and employees of Contractor, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the State. 3. The State may terminate this Agreement and be relieved of any payments should the Contractor fail to perform the requirements of this Agreement at the time and in the manner herein provided. In the event of such termination the State may proceed with the work in any manner deemed proper by the State. All costs to the State shall be deducted from any sum due the Contractor under this Agreement and the balance, if any, shall be paid to the Contractor upon demand. 4. This Agreement is not assignable by the Contractor, either in whole or in part, without the consent of . the State in the form of a formal written amendment. 5. Time is of the essence in this Agreement. 6. No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or Agreement not incorporated in the Agreement is binding on any of the parties. 7. The consideration to be paid Contractor, as provided herein, shall be in compensation for all of Contractor's expenses incurred in the performance hereof, including travel, per diem, and taxes, unless otherwise expressly so provided. 8. Contractors entering into a contract funded wholly or in part with funds from the United States Government agree to amendments in funding to reflect any reductions in funds if the Congress does not appropriate sufficient funds. In addition, the contract is subject to any restrictions, limitations or enactments of congress which affect the provisions, terms or funding of this agreement in any manner. The State shall have the option to terminate the contract without cost to the State in the event that Congress does not appropriate funds or a United States agency withholds or fails to allocate funds, Contractor Certification Clauses The authorized signer of this Contract CERTIFIES UNDER PENALTY OF PERJURY that he/she are duly, authorized to legally bind the Contractor to the clauses(s) listed below. This certification is made under the laws of the State of California. 1. NON-DISCRIMINATION CLAUSE: During the performance of this Agreement, Contractor and its subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition -(cancer), age (over 40), marital status, and denial of family care leave. Contractor and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act. (Government Code Section 12990 (a -f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.).'The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a -f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement. Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement. (Not applicable to public entities.) 2. DRUG-FREE WORKPLACE CERTIFICATION: By signing this contract, the contractor will comply with the requirements of the Drug -Free Workplace Act of 1990.and will provide a drug-free workplace by taking the following actions: a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations. b. Establish a Drug -Free Awareness Program to inform employees about: 1) the dangers of drug abuse in the workplace; 2) the person's or organization's policy of maintaining a drug-free workplace; 3) any available counseling, rehabilitation and employee assistance programs; and, 4) penalties that may be imposed upon employees for drug abuse violations. c. Every employee who works on the proposed contract will: 1) receive a copy of the company's drug-free workplace policy statement; and, 2) agree to abide by the terms of the company's statement as a condition of employment on the contract: Failure to comply with these requirements may result in suspension of payments under this agreement or termination of this agreement or both and Contractor may be ineligible for award of any future State agreements if the department determines that any of the following has occurred: (1) the Contractor has made false certification, or (2) violated the certification by failing to carry out the requirements as noted above. (Government Code 8350 et seq.) 3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Contractor certifies that no more than one (1) final unappealable finding of contempt of court by a Federal court has been issued against Contractor within the immediately preceding two-year period because of Contractor's failure to comply with an order of a Federal court, which orders Contractor to comply with an order of the National Labor Relations Board. (Public Contract Code 10296) (Not applicable to public entities.) 4. EXPATRIATE. CORPORATIONS: Contractor hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of Public Contract Code Section 10286 and 10286.1, and is eligible to contract with the State of California. 5. SWEATFREE CODE OF CONDUCT: a. All Contractors contracting for the procurement or laundering of apparel, garments or corresponding accessories, or the. procurement of equipment, materials, or supplies, other than procurement related to a public works contract, declare under penalty of perjury that no apparel, garments or corresponding accessories, equipment, materials, or supplies furnished to the state pursuant to the contract have been laundered or produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured tabor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor. The contractor further declares under penalty of perjury that they adhere to the Sweatfree Code of Conduct as set forth on the California Department of Industrial Relations website located at www.dir.ca.gov, and Public Contract Code Section 6108. b. The contractor agrees to cooperate fully in providing reasonable access to the contractor's records, documents, agents or employees, or premises if reasonably required by authorized officials of the contracting agency, the Department of Industrial Relations, or the Department of Justice to determine the contractor's compliance with the requirements under paragraph (a). 6. DOMESTIC PARTNERS: For contracts over $100,000 executed or amended after January 1, 2007, the contractor certifies that contractor is in compliance with Public Contract Code Section 10295.3. 7. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all contractors that are not another state agency or other governmental entity. PROGRAM REQUIREMENTS FOR SCHOOL-AGE CHILD CARE RESOURCE PROGRAM cscc July 1, 2008 through June 30, 2009 Exhibit B 5 PROGRAM REQUIREMENTS FOR SCHOOL-AGE CHILD CARE RESOURCE PROGRAM cscc July 1, 2008 through June 30, 2009 Exhibit B SCHOOL-AGE CHILD CARE RESOURCE PROGRAM REQUIREMENTS July 1, 2008 through June 30, 2009 The intent of this resource contract award is to improve the quality and availability of child care and to allow the contractor flexibility in the expenditure of the funds for one- time only items that primarily benefit the school-age child care services program. The following program requirements are provided to assist the designated legal entity in meeting the legislative intent. Each. contractor is required, as a condition of its contract with the California Department of Education (CDE), Child Development Division (CDD), to adhere to these requirements and Title 5 regulations pertaining to Child Development Programs, in addition to all other applicable laws and regulations. Any variance from these requirements, the applicable Title 5 regulations, laws and regulations could be considered a noncompliance issue and subject the contractor to possible termination of the contract. .This contract is funded through a grant from the federal Department of Health.and Human Services and subject to Code of Federal Regulations (CFR), Title 45, Parts 98 and 99; the Child Care and Development Block Grant Act of 1990, as amended; Public Law 104-193; the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996; and 42 United States Code (USC), Section 9858. If the Catalogue of Federal Domestic Assistance (CFDA) number is 93.596 (shown as FC# in the funding block), the fund title is Child Care Mandatory and Matching Funds of the Child Care and Development Fund. If the CFDA number is 93.575, the fund title is Child Care and Development Block Grant subject to the Child Care and Development Block. Grant Act of 1990; the Omnibus Budget Reconciliation Act of 1990, Section 5082; Public Law 101-508, as amended, Sections 658J and 658S; and Public Law 102-586. 1. GENERAL PROVISIONS A. Notification of Address Change Contractors shall notify the CDD in writing of any change in mailing address for communication regarding the contract (administrative address) within ten (10) calendar days of the address change. For non-public agencies, the notification must be accompanied by: 1. Board minutes verifying the change in address; 2. A copy of the notification to the Internal Revenue Service of the address change. Contractors shall notify the CDD in writing of any proposed change in operating facility address(es) at least thirty (30) calendar days in advance of the change unless such change is required by an emergency such as fire, flood or earthquake. For proposed site changes for Prekindergarten and Family Literacy Part and Full -Day programs, a request must be submitted to the CDD and shall include: 1. The name and address of the current program location; 2. The name and address of the current proposed program location; 3. Verification that the proposed program location is within the attendance area of an elementary school with a decile ranking of 1 to 3, inclusive, based on the 2005 base Academic Performance Index; and; 4. The site license for the proposed program location. Approval shall be granted upon receipt of documentation confirming that the proposed program location meets the statutory requirements as specified in Education Code Section 8238.4(a)(2). The CDD shall approve or deny the request within thirty (30) calendar days of receipt of the request. B. Notification of E-mail Contact Changes Contractors shall assure that at all times the e-mail address on file at the CDD is accurate for contacting the following individuals: 1. Executive Officer 2. Program Director Contractors shall utilize procedures provided by the CDD to electronically add new addresses or delete old addresses, as needed. C. Open Board Meetings Any private tax-exempt or private non -tax exempt agency receiving public funds under these regulations must, to the extent of the publicly funded program, comply with the Ralph M. Brown Open Meetings Act ("Brown Act"), Government Code sections 54950-54963. Board meetings shall be open to the public except for meetings with its designated representatives prior to and during consultations and discussions with representatives of employee organizations regarding salaries, salary schedules or compensation paid in the form of fringe benefits to employees or to consider the appointment, employment, evaluation of performance or dismissal of an employee or to hear complaints or charges brought against an employee unless such employee requests an open meeting. Minutes of these open meetings shall be available to the public. 2 D. Issuance and Use of Checks Except for external payroll services, private contractors shall not use any pre -signed, pre -authorized, or pre -stamped checks without the prior written approval of the CDD. Private contractors shall require two (2) authorized signatures on all checks unless: 1. The contractor has a policy approved by its governing board requiring dual signatures only on checks above a specified dollar amount; and 2. The annual audit verifies that appropriate internal controls are maintained. E. Prohibition Against Loans and Advances Contractors shall not loan contract funds to individuals, corporations, organizations, public agencies or private agencies. Contractors shall not advance unearned salary to employees. Contractors shall not make advance payments to subcontractors and shall compensate subcontractors after services are rendered or goods are received except for: 1. Subcontractors providing direct child care and development services; 2. Subcontractors with subcontracts exempt from the provisions of Section N.A. of the center -based funding terms and conditions. F. Materials Developed with Contract Funds If the contractor receives income from materials developed with contract funds, the use of the income shall be restricted to the child development program. If the materials were developed in part with contract funds, the income from the sale of the materials that shall be used in the child development program shall be computed in direct proportion to the share of contract funds used in development of the materials. Materials developed with contract funds shall contain an acknowledgement of the use of state (general) or federal funds in the development of materials and a disclaimer that the contents do not necessarily reflect the, position or policy of the CDE. 3 G. Prohibition Against Religious Instruction or Worship The contractor shall not provide nor be reimbursed for child care and development services that include religious instruction or worship if child care and development services are provided by a center -based contractor or a family child care home education network. H. Contractor's Termination for Convenience 1. General Termination for Convenience A contractor may terminate the contract for any reason during the contract term. The contractor shall notify the CDD of its intent to terminate the contract at least ninety (90) calendar days prior to the date the contractor intends to terminate the contract. Within fifteen (15) days from the date the contractor notifies the CDD of its intent to terminate the contract, the contractor shall submit a current inventory of equipment purchased in whole or in part with contract funds. Upon receipt of a notice of intent to terminate, the CDD will transfer the program to another,agency as soon as practicable. The state shall only be obligated to compensate the contractor for net reimbursable program costs in accordance with this contract through the date of termination. There shall be no other compensation to the contractor. The state shall offset any monies the contractor owes the state against any monies the state owes under this contract. 2. Changes in Laws or Regulations The CDD shall notify contractors in writing of changes in laws or regulations prior to the effective date or soon as possible after enactment. If any laws or regulations are changed substantially during the contract period, the contractor shall have the option to discontinue performance and be relieved of all obligations for further performance. The contractor has thirty (30) calendar days from receipt of notification of pending changes to notify the CDD in writing of the contractor's intent to terminate if the required changes are unacceptable to the contractor. The contract shall be deemed terminated sixty (60) calendar days after receipt of the notification of the intent to terminate. 4 I. Eligibility for Funding A contractor is not eligible for additional funds, as defined in Section I. of the center -based funding terms and conditions, if the contractor has received final notification,' as specified in Section VIII.A. of the center - based funding terms and conditions, that its contract has been terminated. A contract is not eligible for additional funds if the contractor has demonstrated fiscal and/or programmatic noncompliance and has received final notification as specified in Section IX.A. of the center -based funding terms and conditions, that: 1. Its contract will be placed on conditional status; or 2. It will not be offered continued funding. J. Applicability of Corporations Code Except for partnerships and sole proprietorships, private contractors shall be subject to all applicable sections of the Corporations Code including standards of conduct and management of the organization. K. Conflicts of Interest For any transaction to which the contractor is a party and the other party is: 1. An officer or employee of the contractor or of an organization having financial interest in the contractor; or 2. A partner or controlling stockholder or an organization having a financial interest in the contractor;or 3. A family member of a person having a financial interest in the contractor, the transaction(s) shall be fair and reasonable and conducted at arm's length. Based on corporate law (Corporations Code, sections 310, 5233-5234, 7233 and 9243 as applicable) the general rules that would be followed to ensure that transactions are conducted "at arm's length" include:. 1. Prior to consummating the transaction, the governing body should authorize or approve the transaction in good faith and the board should require the interested party, or parties, to make full disclosure to the board both in writing and during the board meeting where the transaction is being discussed; and 2. All parties having a financial interest in the transaction should refrain from voting on the transaction and it should be so noted in theboard minutes. If the transaction involves the renting of property, either land or buildings, owned by affiliated organizations, officers or other key personnel or the contractor or their families, the board of directors shall request the interested party to obtain a "fair market rental estimate" from an independent appraiser, licensed by the California Office of Real Estate Appraisers. If the contractor has no board or is a sole proprietor, the requirement for a "fair market rental estimate" shall also apply. The contractor has the burden of supporting the reasonableness of rental costs. If the property is owned by the contractor, rental costs are not reimbursable and costs may be claimed only as depreciation or use allowance. Any transaction described in this paragraph shall be disclosed by the auditor in the notes to the financial statement in the annual audit (OMB A-110, Subpart D). Rental costs for equipment owned by affiliated organizations, officers, or other key personnel of the contractor or their families are allowable only as use or depreciation allowance. L. Americans with Disabilities Act By signing this contract, the contractor assures the CDE that it shall comply with the Americans with Disabilities Act (ADA) of 1990, - (42 U.S.C. 12101 et seq.) which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. M. Air or Water Pollution Violations (Govemment Code, Section 4477) By signing this agreement, the contractor swears under penalty of perjury that the contractor is not: 1. In violation of any order or resolution not. subject to review promulgated by the state Air Resources Board or an air pollution control district; 2. Subject to a cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or 3. Finally determined to be in violation of provisions of federal law relating to air or water pollution. C' N. Recycled Paper Certification (Public Contract Code, Section 12205) The contractor agrees to certify in writing to the CDE, under penalty of perjury, the minimum, if not exact, percentage of post -consumer material as defined in Public Contract Code, sections 12161 and 12200, in materials, goods or supplies offered or products sold to the state regardless of whether the product meets the required recycled product percentage as defined in Public Contract Code sections 12161 and 12200. Contractor may certify that the product contains zero recycled content. O. Child Support Compliance (Public Contract Code, Section 7110) For any agreements in excess of $100,000, the contractor acknowledges in accordance with Public Contract Code 7110 that: 1. The contractor recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement including, but not limited to, disclosure of information and compliance with earnings assignment orders as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9. of the Family Code; and 2. The contractor, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry - maintained by the California Employment Development Department. P. Unlawful Denial of Services (Government Code, Section 11135) 1. No person in the State of California shall, on the basis of race, national origin, ethnic group identification, religion, age, sex, sexual orientation, gender, ancestry, color, or mental or physical disability, be unlawfully denied full and equal access to the benefits of, or be unlawfully subjected to discrimination under, any program or activity that is conducted, operated or administered by any state agency, is funded directly by the state or receives any financial assistance from the state. 2. With respect to discrimination on the basis of disability, programs and activities subject to subdivision (a) shall meet the protections and prohibitions contained in Section 202 of the Americans with Disabilities Act (ADA) of 1990 (42 USC, Section 12132), and the federal rules and regulations adopted in implementation thereof, except that if the laws of this state prescribe stronger protections and prohibitions, the programs and activities subject to subdivision (a) shall be subject to the stronger protections and prohibitions. As used in this section, "disability" means any mental or physical disability as defined in Government Code Section 12926. Q. Computer Software Copyright Compliance By signing this agreement, the contractor certifies that it has appropriate systems and controls in place to ensure that state (General) funds or federal funds will not be used in the performance of this contract for the acquisition, operation or maintenance of computer software in violation of copyright laws. R. Priority Hiring Consideration (Public Contract Code 10353) If the contract includes services in excess of $200,000, the contractor shall give priority consideration in filling vacancies in positions funded by the contract to qualified recipients of'aid under the Welfare and Institutions Code Section 11200. S. Labor Code/Workers' Compensation (Labor Code Section 3700) The contractor needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions and the contractor affirms to comply with such provisions before commencing the performance of the work of this agreement T. Corporate Qualifications to do Business in California 1. When agreements are to be performed in the state by corporations, the contracting agencies will be verifying that the contractor is currently qualified to do business California in order to ensure that all obligations due to the state are fulfilled. 2. "Doing business" is defined in Revenue and Taxation Code (RT&C) Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. Although there are some statutory exceptions to taxation, rarely will a corporate contractor performing within the state not be subject to the franchise tax. 3. Both domestic and foreign corporations (those incorporated outside of California) must be in good standing in order to be qualified to do business in California. Agencies will determine whether a corporation is in good standing by calling the.Office of the Secretary of State. U. Equipment Bidding and Approval Requirements All equipment purchases in excess of seven thousand five hundred dollars ($7;500) per item (including tax) shall be approved in writing in advance by the CDD. In determining if an equipment purchase exceeds the threshold, all expenses associated with a purchase that are necessary for it to perform the intended purpose should be included in calculating the purchase cost. (Example: A computer system could include, but is not limited to, individual items such as a central processing unit (CPU), computer monitor, computer stand, modems, disk drives, software, printer, etc. or hardware and software to install a local area netwo(k (LAN) system. Private agencies: All equipment purchases exceeding five thousand dollars ($5,000 including tax) will not be approved unless at least three (3) bids or estimates have been obtained. 2. Public agencies: Public agencies shall comply with the applicable sections of the Public Contract Code. if bids are required, the contractor shall purchase the goods and services from the lowest responsible bidder, If three (3) bids or estimates cannot be obtained, the contractor shalt provide adequate documentation of the reason(s) why three (3) bids or estimates could not be obtained (e.g., emergency situations). Bids, if applicable, shall be attached to the Request for Approval of Equipment (CD -2703) when submitted to the CDD for approval. One copy of the request shall be retained by the CDD and one copy returned to the. contractor approved or disapproved within thirty (30) calendar days of receipt. If the request for approval of an equipment purchase is disapproved, the contractor may appeal the decision in accordance with instructions specified in the center -based funding terms and conditions. V. Equipment inventory Property records must be maintained that include a description of the equipment, serial number or other identification number, the source of the equipment, the acquisition date, the cost of the equipment, the location, use and condition of the equipment and any ultimate disposition date including date of disposal and sale price if applicable. A physical inventory of equipment must be taken at least every two (2) years and reconciled with property records. A control system must be developed to monitor to ensure adequate safeguards to prevent loss, damage or theft (any loss, damage or theft must be investigated) and adequate maintenance procedures must be developed to keep the equipment in good condition. W. Title, Use, Disposition and Retention of Equipment 1. Title - When equipment is purchased with state funds, title shall vest with the contractor for such a period of time as the contractor has a contract with the CDE. 2. Retention of Equipment - The CDD may provide written authorization for the contractor to retain the equipment for the contractor's own use if a fair compensation is paid to the state for the state's share of the cost of the equipment. Fair compensation shall be determined by the state using the state's share of the original acquisition cost, less depreciation, computed on a straight- line method over the estimated useful life expectance of the equipment. 3. Use - When equipment is purchased in whole or in part with state funds, the contractor shall use the equipment exclusively in the program(s) from which funds were used to purchase the equipment. If the contractor wishes to share the use of the equipment between/among two (2) or more programs, the cost of such equipment shall be prorated between/among the programs. 4. Disposition - The contractor may dispose of obsolete equipment and remove the asset at its recorded value. If the sale of equipment originally purchased with state funds occurs, the proceeds from the sale of the equipment must be returned to the program. If the contractor no longer has a contract with the CDE, the contractor shall dispose of the equipment in accordance with written directions from the CDE/CDD. X. Renovation and Repair Improvement of sites and adjacent grounds to meet or continue to meet the California Code of Regulations, Title 22, Community Care Licensing Standards is reimbursable if the improvements are reasonable and necessary costs (as defined in Section I. above) of a facility and the contractor has obtained prior CDD approval for proposed work for ten thousand dollars ($10,000 including tax) or more. For private agencies, such proposed work in excess of five thousand dollars ($5,000 including tax), unless performed by contractor's staff, shall have at least three (3) bids or estimates and shall be awarded to the 10 lowest responsible bidder. Bids, if applicable, shall be submitted by the contractor when requesting CDD approval. If three (3) bids or estimates cannot be obtained, the contractor shall maintain adequate documentation of the reason(s) why three (3) bids or estimates could not be obtained as well as the reasonableness of cost in the absence of competition. Public agencies shall comply with applicable sections of the Public Contract Code. Proposed work for ten thousand dollars ($10,000, including tax) or more shall be submitted for prior written approval to the CDD. If three (3) bids were not obtained, the contractor shall submit written justification to the CDD at the time approval is requested. The CDD shall approve or disapprove the request within thirty (30) calendar days. If the request is disapproved, the contractor may appeal the decision in accordance with instructions specified in the center -based funding terms and conditions. If the work is to be performed through a subcontract, the subcontract requirements listed below also apply. When private agencies submit proposed subcontracts for renovation and repair for approval, evidence shall be included that the proposed subcontractor has obtained a payment bond in. an amount not less than one-half (1/2) the amount of the proposed contract. Y. Bids for Subcontracts Private contractors shall obtain at least three (3) bids or estimates for subcontracts that exceed five thousand dollars ($5,000). The subcontract shall be awarded to the lowest responsible bidder. If three (3) bids or estimates cannot be obtained, the private contractor shall: 1. Maintain documents in its records that establish the reasons why three (3) bids or estimates could not be obtained; and 2. The reasonableness of the proposed expenditure without three (3) bids or estimates. Subcontracts subject to the approval of the CDD shall be rebid at least once every three (3) years or more often if specified by theCDD in its annual approval of the subcontract. Public agencies shall award subcontracts in accordance with the Public Contract Code. The contractor shall not split subcontracts to avoid competitive bid requirements. Subcontracts for direct child development services between a public agency contractor and a private subcontractor are exempt from bidding but not from advance approval by the CDD if they are for ten thousand dollars ($10,000) or more. 11 Subcontracts for auditing and/or bookkeeping services shall be rebid and changed every five (5) years unless retention of the same auditor is approved by the A&I. Z. Required Subcontract Provisions. Every subcontract shall specify: 1. The dates within which the subcontractor is to perform the contract. 2. The time for subcontractor performance shall not begin prior to, nor shall the time extend beyond, the time period of the contract between the contractor and the state. 3. The dollar amount of the subcontract or specify an amount not to exceed a maximum dollar amount. 4. The service(s) to be provided under the subcontract. 5. That the subcontractor, and the agents and employees of the subcontractor, in the performance of the subcontract, are acting in an independent capacity and not as officers or employees or agents of the State of California. 6. That modifications of the subcontract shall be in writing, and that for subcontracts in excess of the amount stated in the annual child development contract, prior written CDD approval is required unless the subcontract is otherwise exempt from prior CDD approval. 7. That the subcontract is the complete and exclusive statement of the mutual understanding of the parties and that the subcontract supersedes and cancels all previously written and oral agreements and communications relating to the subject matter of the subcontract. 8. Remedies, in case of a breach of contract, for subcontracts in excess of ten thousand dollars ($10,000). 9. That the State of California retains title to any equipment or supplies purchased with state funds and that the equipment shall be returned to the contractor upon termination of the subcontract. The subcontract shall also specify that the subcontractor shall obtain prior written approval from the contractor and the CDD for any unit of equipment that costs in excess of seven thousand five hundred dollars ($7,500). 10. That the subcontractor shall be reimbursed for travel and per diem expenses only at rates that do not exceed the rates paid to the CDE's hon -represented employees computed in accordance with State Department of Personnel Administration regulations, Title 2, California Code of Regulations, Subchapter 1. 11. That the subcontractor agrees to indemnify and hold harmless the State of California, its officers, agents and employees from any and all claims and losses occurring or resulting to any and all 12 contractors, subcontractors, materialmen, laborers and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of the subcontract, and from any and all claims and losses occurring or resulting to any person, firm or corporation that may be injured or damaged by the subcontractor in the performance of the subcontract. 12. That for management and/or direct service subcontractors, the subcontractor shall maintain records for program review, evaluation, audit and/or other purposes and make the records available to agents of the state for a period of five (5) years. 13. The provisions in the "Nondiscrimination Clause" included in the prime contract as specified in Title 2, California Code of Regulations, Chapter 5, Section 8107. Subcontracts for management and/or direct services shall be audited in accordance with CDE Audit Guidelines. The cost of the audit shall be reimbursable and shall be borne by the contractor either directly or as an allowance in the subcontract. The audit of the subcontract shall be submitted to the A&I along with the contractor's audit as specified in the center -based funding terms and conditions. AA. Recommended Subcontract Provisions The following items are suggested for inclusion in subcontracts to protect the interests of the contractor: 1. Funding of the subcontract should be made subject to the appropriation and availability of funds from the state. 2. All subcontracts should contain a provision that the subcontractor is liable for any audit exception caused by, or as a result of, the subcontractor's lack of performance as required by the subcontract. 3. The subcontract should provide that the subcontractor, its agents and employees, in the performance of the subcontract, are acting in an independent capacity and not as agents or employees of the contractor. 4. Unless exempted from CDD approval, subcontracts for ten thousand dollars ($10,000) or more cannot become effective and binding on either the prime contractor or the subcontractor until approved in writing by the CDD, and any work performed by the subcontractor prior to the date of such approval shall not be used as a claim against the state. 5. The consideration paid to the subcontractor, as provided in the subcontract, should be stated to be the full compensation for all the subcontractor's expenses incurred in the performance of the subcontract. 13 II. AGENCY RESPONSIBILITIES A. Use of Funds These school-age resource contract funds must be used for the benefit of school-age children ages five (5) through twelve (12) years. Agencies operating or sponsoring multiple school-age child care service locations must expend the resource contract funds to provide benefit to all service locations proportionate with the numbers of subsidized school-age children served at each location. 1. The contract funds may be used to: a. Purchase equipment and materials for the school-age program; b. Expand recruitment and outreach efforts to enroll additional school-age children; C. Train staff to work with school-age children ages five (5) through twelve (12) years; d. Make minor renovations and repair to the school-age service area; . e. Pay for indirect and administration costs as specified in the funding terms and conditions (FTCs) for the contract type under which school-age services are provided. 2. The contract funds may not be used to pay for: a. The direct provision of child care services; b. Construction of a facility to meet basic licensing requirements; C. Purchase or improvement of land; d. Lease or rent payments; e. Salaries or benefits. B. Reporting Requirements These are one -time -only funds that must be expended between July 1, 2008 and June 30, 2009 and expenditure of these funds shall be reported quarterly to the Child Development Fiscal Services (CDFS) on Form CDFS 9529. Quarterly reporting must be submitted for reimbursement of expenditures. The Expenditure Reports are due quarterly with the first report due no later than October 20, 2008 for the period ending September 30, 2008 and quarterly thereafter (December 31, March 31 and June 30). The expenditure form CDFS 9529 is available on-line at: 14 www.cde.ca.goy/tq/aa/cd/documents/cdfs952908.doc Please complete and submit this form directly to your assigned fiscal analyst at: California Department of Education Child Development Fiscal Services 1430 N Street, Suite 2213 Sacramento, CA 95814 Private agencies (including proprietary entities) that receive $500,000 or more in total Federal funds are required to have an Organization -Wide Audit (OWA) performed in accordance with OMB Circular A-133 and the "Guide for Auditing Child Development, Nutrition and Adult Education Programs," (Audit Guide); prepared by CDE's Audits and Investigations Division (AID). Governmental and other public agencies (excluding school districts, county office of education and community college districts) must comply with the requirements of OMB Circular A-128 and CDE's "Audit Guide." All other agencies (excluding school districts, county offices or education and community colleges) must submit a contractor audit performed in accordance with the CDE's "Audit Guide. C. Reimbursement Costs Reimbursable costs must be incurred during the contract period., Contractors shall not use current year contract funds to pay prior or future year obligations. Contracts and subcontracts shall be reimbursed for travel and per diem expenses at rates not exceeding those amounts paid to the CDE's non - represented employees computed in accordance with Department of Personnel Administration (DPA) regulation, Title Z California Code of Regulation, Subchapter 1. Nonreimbursable costs will be determined in accordance with the current resource and referral funding terms and conditions, Section V.F., "Nonreimbursable Costs." If you have any questions regarding the appropriateness of a proposed expenditure, please contact Gail Brodie, Child Development Consultant, Child Development Division at (916) 322-4861 or by e-mail at gbrodie(@cde.ca.gov. 15