HomeMy WebLinkAboutM-035-25 REAP 2.0 RUSH Palm Desert MOU Executed
MEMORANDUM OF UNDERSTANDING
No. M-035-25
SCAG Overall Work Program (OWP) No: 305-4925.01
Federal/State Awarding Agency: State of California, Department of Housing and Community
Development
Funding Source: Regional Early Action Planning Grants Program of 2021 (REAP 2.0)
Sub-Recipient Name: City of Palm Desert
Sub-Recipient’s UEI No: XLREHY4MDGW4
Total Amount of Federal Funds Obligated to Sub-Recipient: $0
Total Amount of Non-Federal Funds Obligated to Sub-Recipient: $8,000,000
Total Amount of the Sub-Award: $8,000,000
Subaward Period of Performance Start Date: See Section 37
Subaward Period of Performance End Date: June 30, 2026
Type of Contract: Project Specific
Method of Payment: See Section 6 of this MOU
Project R&D: N/A
Indirect Cost Rate for the Award: N/A
Fringe Benefits Cost Rate for the Award: N/A
Subaward Project Title: City of Palm Desert REAP 2.0 Regional Utilities Supporting Housing Program
Grant – Capital Projects
Subaward Project Description: City of Palm Desert will utilize REAP 2.0 funding for a project that
provides investments in utility infrastructure planning and capital improvements that will support
jurisdictions in meeting the housing production goals defined in the 6th cycle RHNA, housing elements
and REAP 2.0 Program objectives.
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MEMORANDUM OF UNDERSTANDING
No. M-035-25
BETWEEN THE
SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS
AND CITY OF PALM DESERT
FOR REAP 2.0 REGIONAL UTILITIES SUPPORTING HOUSING PROGRAM GRANT
(SCAG Project/OWP No. 305-4925.01)
This Memorandum of Understanding (“MOU”) is entered into by and between the Southern California
Association of Governments (“SCAG”) and City of Palm Desert (“Sub-Recipient”), for a Regional
Utilities Supporting Housing (“RUSH”) Program Grant. SCAG and Sub-Recipient may be individually
referred to as “Party” and collectively as “Parties.”
RECITALS
WHEREAS, the Regional Early Action Planning Grants Program of 2021 (“REAP 2.0”) was established
with a principal goal to make funding available to Metropolitan Planning Organizations (“MPO”) and
other regional entities for transformative planning and implementation activities that meet housing and
equity goals, reduce Vehicle Miles Traveled per capita, and advance implementation of the region’s
Sustainable Communities Strategy or Alternative Planning Strategy, as applicable;
WHEREAS, the California Department of Housing and Community Development (“HCD”) administers
REAP 2.0 in accordance with Health and Safety Code sections 50515.06 to 50515.10 (“Statutes”) and
REAP 2.0 guidelines for MPO applicants released by HCD pursuant to the Statutes (“REAP 2.0
Guidelines”);
WHEREAS, SCAG is the federally designated MPO for Southern California, primarily responsible for
the development of a Regional Transportation Plan/Sustainable Communities Strategy (“RTP/SCS” also
known as “Connect SoCal”) for the counties of Imperial, Los Angeles, Orange, San Bernardino, Riverside,
and Ventura;
WHEREAS, HCD awarded funds to SCAG under REAP 2.0;
WHEREAS, SCAG’s Regional Council authorized funding for the RUSH Program and approved the
guidelines for the RUSH Program (“Program Guidelines”);
WHEREAS, SCAG released a competitive Call for Applications for the RUSH Program;
WHEREAS, Sub-Recipient, eligible for funds under the RUSH Program, developed and submitted a
proposed project for the RUSH Program (“Project”);
WHEREAS, SCAG reviewed the Project and determined the Project to be consistent with the REAP 2.0
Guidelines and Program Guidelines, and approved the Project to receive funding; and
WHEREAS, the purpose of this MOU is to describe the responsibilities of the Parties.
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NOW THEREFORE, IT IS MUTUALLY AGREED THAT:
1. Recitals and Exhibits
The Recitals and all exhibits referred to in this MOU are incorporated herein by this reference and
made a part of the provisions of this MOU.
2. Term
The Term of this MOU shall begin on the Effective Date and continue until June 30, 2026,
(“Completion Date”), unless terminated earlier as provided herein. Time is of the essence in the
performance of services under this MOU.
3. Scope of Work and Sub-Recipient’s Responsibilities
a. Sub-Recipient shall be responsible for implementing the Project in accordance with the “Scope of
Work,” attached as Exhibit A.
b. Interim deliverables and tasks, including budgets and schedules, required to implement the Scope
of Work shall be documented using the “Scope of Work Approval Form,” attached as Exhibit B
(“SOW Approval Form”). The SOW Approval Form must be signed by SCAG Project Manager,
SCAG Department Manager, SCAG Deputy Director or their designee, and Sub-Recipient prior
to the performance of the work outlined in the SOW Approval Form. The SOW Approval Form
may be signed by way of a manual or authorized digital signature, or a signature stamp. The SOW
Approval Form may be used to document interim deliverables and interim deliverable budgets and
schedules but may not be used to modify the deliverables and budget noted in this MOU. The
SOW Approval Form may be amended subject to approval by SCAG. No amendment to the SOW
Approval Form shall be valid unless made in writing and signed by the Parties. If there is a conflict
between the SOW Approval Form and this MOU, this MOU shall prevail.
c. Sub-Recipient must demonstrate a clear and significant nexus to all the REAP 2.0 Goals and
Objectives, as described in Section 9 of this MOU, and must carry out the Project to meet the
REAP 2.0 Goals and Objectives. Any lack of action or action inconsistent with REAP 2.0 Goals
and Objectives may result in review and could be subject to modification of funding, termination
of this MOU, and repayment of the Grant Funds.
d. In compliance with Section 3.e., Sub-Recipient may procure and manage one or more Consultants
to ensure the Scope of Work, as outlined in the most current fully executed SOW Approval Form,
is fully performed and the Project is completed in compliance with this MOU and all applicable
laws and regulations.
e. As a recipient of federal and state funds, SCAG has the responsibility for ensuring that its
procurement process complies with all applicable federal, state and funding requirements. For all
agreements entered into containing funds provided under this MOU or to perform work under this
MOU, Sub-Recipient shall procure in compliance with all applicable federal, state, and local laws
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and regulations. All REAP 2.0 funded procurements must be conducted using a fair and
competitive procurement process and sole source procurements are expressly prohibited. [
f. The term “Consultant(s)” shall hereinafter refer to all entities that Sub-Recipient procures,
manages, or otherwise enters into contracts or agreements with, in furtherance of the Project or
this MOU regardless of the timing, nature of service/work provided or type of organization,
including but not limited to government entities, political subdivisions, subrecipients, consultants,
contractors, service providers, suppliers, independent contractors, professionals, managers,
architects, engineers, and subcontractors.
g. Upon request, Sub-Recipient shall provide information to the SCAG Project Manager regarding
any existing solicitation including but not limited to Requests for Proposals, Invitation for Bids,
Request for Qualifications, and Requests for Quotation (collectively “RFP”). For new RFPs
developed or finalized after the Effective Date of this MOU, Sub-Recipient shall provide
information to the SCAG Project Manager and obtain SCAG Project Manager’s written approval
on any final RFP prior to its issuance. SCAG may require documentation of RFPs and Notices to
Proceed before approval of invoice reimbursement.
h. When requested, Sub-Recipient shall provide other related documentation of compliance, as
determined by SCAG, with applicable procurement requirements and terms and conditions of this
MOU within ten (10) days of the request.
i. Sub-Recipient shall be responsible for conducting a complete detailed review of Consultant(s)’
invoices prior to payment. The review shall include, but not be limited to, ensuring: (1) the work
included in the invoice is correctly invoiced and supported; (2) hours worked equal hours invoiced;
(3) charged rates are equal to the contracted rates; (4) materials and services were received; and
(5) that the work performed is consistent with the Scope of Work. Upon review, Sub-Recipient
shall pay Consultant(s)’ invoices prior to submitting invoices to SCAG for reimbursement.
j. Sub-Recipient shall be accountable to SCAG and HCD to ensure Consultant(s)’ performance. Sub-
Recipient’s Project Manager shall be responsible for final approval of Consultant(s)’ deliverables
consistent with the Scope of Work, as outlined in the most current fully executed SOW Approval
Form; provided, however, that prior to approving a deliverable from the Consultant(s), Sub-
Recipient’s Project Manager shall consult with SCAG’s Project Manager.
k. Any and all notices, reports, or other communications required by this MOU, including but not
limited to invoices, accounting reports, supporting documentation, and monitoring reports, shall
be submitted under the penalty of perjury.
l. Sub-Recipient shall be responsible for ensuring compliance with all applicable California
Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA)
requirements, and, as applicable, shall serve as the implementing agency for environmental
approval(s).
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4. Project Management
a. All work under this MOU shall be coordinated with SCAG and Sub-Recipient through the Project
Managers.
b. For purposes of this MOU, SCAG designates the following individual as its Project Manager:
Jessica Reyes Juarez
Associate Regional Planner
(213) 236-1802
juarez@scag.ca.gov
SCAG reserves the right to change this designation.
c. For purposes of this MOU, Sub-Recipient designates the following individual(s) as its Project
Manager:
Ryan Gayler
Capital Projects Manager
(760) 776-6393
rgayler@palmdesert.gov
Sub-Recipient reserves the right to change this designation upon written notice to SCAG.
5. Funding
Grant Funds: $8,000,000
Match Contribution: $6,500,000
a. SCAG’s contribution to the Project is funded wholly with REAP 2.0 funds, in an amount not to
exceed $8,000,000 (“Grant Funds”).
b. Sub-Recipient shall provide a minimum of $6,500,000 of match in support of the Project
("Match Contribution"). Match Contribution must be identified in writing and if applicable the
associated commitments obtained, before the Sub-Recipient can incur any costs for which the
Sub-Recipient will request reimbursement. Match Contribution must adhere to the terms and
conditions of this MOU. Nothing shall prohibit the Sub-Recipient from providing additional
Match Contribution to the Project, but the Grant Funds contributed by SCAG shall not exceed
the Grant Funds, regardless of any increased Match Contribution. Match Contribution may be
Cash or In-Kind.
i. Match Contribution may be Cash or In-Kind.
1. For the purposes of this MOU, Cash Match Contribution is an actual cash
contribution. Cash Match Contribution shall be substantiated by identifying
its source, including a contact name, address and telephone number and the
task(s) to which the Cash Match Contribution will be applied.
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2. For the purposes of this MOU, In-Kind Match Contribution is the value of
any real property, equipment, goods, or services contributed to the Project
that would have been allowable costs if the Sub-Recipient was required to
pay for such costs with Grant Funds. In-Kind Match Contribution may
consist of personnel time, contributions provided by third parties, including
labor, vouchers, equipment or other tangible or allowable real property. In-
Kind Match Contribution shall be substantiated by providing the amount, a
description, documented market or book value, and its source or owner,
including a contact name, address and telephone number and the task(s) to
which the In-Kind Match Contribution will be applied.
c. SCAG shall not be obligated to make payments for any costs that exceed the Grant Funds. SCAG
shall not be obligated to pay for any increase in costs which exceeds the budget included in this
MOU and the most current fully executed SOW Approval Form. SCAG shall not be obligated to
make payments from any source other than funds provided by HCD to SCAG pursuant to REAP
2.0. In the event HCD terminates its agreement to provide funds or reduces the funds provided,
SCAG shall have the right to terminate this MOU, in accordance with Section 17, or to amend this
MOU to reflect the changes in funding.
d. SCAG shall make payments to Sub-Recipient only for work performed as part of the Scope of
Work, as outlined in the most current fully executed SOW Approval Form, and consistent with
REAP 2.0 Goals and Objectives, REAP 2.0 Guidelines, and Program Guidelines.
e. SCAG reserves the right, in its sole discretion, to discontinue funding the Project and/or terminate
this MOU as described in Section 17.
f. Any costs for which Sub-Recipient receives reimbursement or credit that is determined by a
subsequent audit or other review by either SCAG, HCD, other State authorities or federal
cognizant agency to be ineligible or otherwise unallowable, shall be repaid by Sub-Recipient
within thirty (30) calendar days of Sub-Recipient receiving notice or a written demand for
reimbursement from SCAG. Such repayment may include interest, penalties, or related fees, as
determined by HCD or other State authorities. Should Sub-Recipient fail to reimburse unallowable
costs due to SCAG within thirty (30) calendar days of demand, or within such other period as may
be agreed between both parties hereto, SCAG is authorized to withhold and/or off-set future
payments to Sub-Recipient.
6. Invoices
a. This MOU is a Cost Reimbursement agreement. Amounts claimed must reflect the actual incurred
and paid cost of completed work. The actual incurred and paid costs may not exceed the Project’s
budget set forth in this MOU and the most current fully executed SOW Approval Form. All
invoices submitted to SCAG for payment shall be e-mailed to accountspayable@scag.ca.gov (file
cannot exceed 10MB) and copy the SCAG Project Manager. All invoices submitted to SCAG for
the Project shall reference the OWP Project Number (OWP No. 305-4925.01).
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b. By the twenty-first day following the start of a new month (i.e., January 21, February 21, March
21), Sub-Recipient shall submit an invoice to SCAG using the electronic “Invoice Template” in
accordance with the invoice submittal instructions and requirements noted in Exhibit C. Invoices
must be submitted in both PDF format and Excel file format. Invoices shall contain a progress
report portion which serves to confirm that the services have been performed and can be paid. All
invoiced costs must be substantiated, by providing documented support for the expense incurred,
such as copies of payroll reports, paid invoices, and proof of payment. The invoice progress report
shall serve as the formal progress report for the Project and shall be signed by the Sub-Recipient.
The progress report shall include, in narrative form, a description of services performed by Sub-
Recipient’s staff and Consultant(s) as well as progress toward completion of tasks related to the
Project for the invoiced period and progress achieved toward the REAP 2.0 Goals and Objectives.
SCAG shall review invoices for compliance with this MOU. If SCAG determines that an invoice
is compliant with this MOU, SCAG shall approve the invoice and issue payment to the Sub-
Recipient. If SCAG determines that an invoice is not compliant with this MOU or the most current
fully executed SOW Approval Form, SCAG may withhold and/or off-set future payment(s) to the
Sub-Recipient.
c. SCAG shall reimburse Sub-Recipient as promptly as SCAG’s fiscal procedures permit, using
Electronic Fund Transfer, available at: ACH Vendor Payment Authorization Form, upon receipt
of itemized invoices submitted in accordance with this MOU. Sub-Recipient shall complete the
ACH Vendor Payment Authorization Form and email it to ACHpayment@scag.ca.gov, prior to
executing this MOU.
d. Incomplete or inaccurate invoices may be returned to Sub-Recipient for correction without
payment until corrected and approved. SCAG may, at its discretion, disallow any unsupported
costs and process the invoice. If Sub-Recipient corrects the error, the disallowed items can be
included in the next set of invoices.
e. Travel expenses and per diem rates are not to exceed the rates and policies specified by the State
of California Department of Human Resources, which can be found at:
https://www.calhr.ca.gov/employees/pages/travel-reimbursements.aspx.
The Parties acknowledge that SCAG’s fiscal year is from July 1 to June 30. Sub-Recipient agrees
to submit all invoices to SCAG for services rendered through June 30th, no later than July 21st
during the Term of this MOU. SCAG shall not be obligated to pay Sub-Recipient for any invoice
received after such date.
f. Sub-Recipient shall submit its final invoice to SCAG within thirty (30) days of the completion of
the Project, but no later than within thirty (30) days after all Grant Funds have been expended.
SCAG shall not be obligated to pay-Sub Recipient for any invoice received after such date.
g. Sub-Recipient will require that its Consultant(s) pay any contractors and subcontractors for
satisfactorily completed work no later than ten (10) days of receipt of each payment from Sub-
Recipient. The ten (10) calendar days period is applicable unless a shorter period is required by
applicable law.
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7. Reporting
a. At any time during the term of this MOU, SCAG may request additional information, as needed,
to demonstrate satisfaction of all requirements identified in the MOU and the most current fully
executed SOW Approval Form.
b. By February 10 of each year following receipt of funding pursuant to this MOU, Sub-Recipient
shall submit an Annual Report using the “Report Template,” attached as Exhibit D. The Annual
Report shall include, in narrative form, a description of services performed by Sub-Recipient’s
staff and Consultant(s) as well as progress toward completion of tasks related to the Project for the
prior year, a reporting of all costs incurred for that period, and progress achieved toward the REAP
2.0 Goals and Objectives.
c. When a Project is finalized, and no later than the Completion Date, Sub-Recipient shall submit a
Close-Out Report for the Project. At the time of the execution of this MOU, HCD has not provided
the requirements for the Close-Out Report due to HCD by all grantees at the conclusion of the
grant performance period. Therefore, the Close-Out Report format required by SCAG of Sub-
Recipient is not available at this time, but will be provided when it becomes available.
d. All reports submitted to SCAG shall reference the OWP Project Number (OWP No. 305-4925.01).
8. Accounting
a. Sub-Recipient shall establish and maintain an accounting system and reports that properly
accumulate incurred Project costs by line. The accounting system shall conform to Generally
Accepted Accounting Principles (“GAAP”), enable the determination of incurred costs as interim
points of completion, and provide support for payment vouchers and invoices.
b. Sub-Recipient shall establish a separate ledger account for receipts and expenditures of Grant
Funds and maintain expenditure details in accordance with the Scope of Work, as outlined in the
most current fully executed SOW Approval Form.
c. Sub-Recipient shall maintain documentation of its normal procurement policy and competitive
procurement bid process and completed procurements, and financial records of expenditures incurred
during the course of the Project in accordance with GAAP.
9. Allowable Uses of Grant Funds
a. Grant Funds shall be expended in compliance with the REAP 2.0 Goals and Objectives.
i. REAP 2.0 Goals (“Goals”) are to invest in housing, planning, and infill housing-supportive
infrastructure across the entire state in a manner that reduces Vehicle Miles Traveled (“VMT”),
increases housing affordability, and advances equity. More detailed information on the Goals
can be found in Section 201 of the REAP 2.0 Notice of Funding Availability (“NOFA”) and
Final Guidelines for MPO Applicants and are made a part of the provisions of this MOU as if
set forth in full.
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ii. REAP 2.0 Objectives (“Objectives”) include: (1) accelerating infill development that facilitates
housing supply, choice, and affordability; (2) affirmatively furthering fair housing; (3)
reducing vehicle miles traveled. More detailed information on the Objectives can be found in
Section 202 of the REAP 2.0 NOFA and Final Guidelines for MPO Applicants and are made
a part of the provisions of this MOU as if set forth in full.
b. Grant Funds shall only be used by Sub-Recipient for activities approved by SCAG and included
in the Scope of Work, as outlined in the most current fully executed SOW Approval Form.
c. Grant Funds may not be used for administrative costs of persons employed by Sub-Recipient for
activities not directly related to eligible activities.
d. There must be a strong implementation component for the funded activity through REAP 2.0,
including, where appropriate, agreement by Sub-Recipient to submit the completed planning
document or effort to the applicable board, council, or other entity for adoption or approval. If
Sub-Recipient does not formally request adoption or approval of the funded activity, it may be
subject to repayment of the Grant Funds.
10. Work Products
a. For purposes of this MOU, “Work Products” shall mean all deliverables created or produced under
this MOU including, but not limited to, all deliverables conceived or made either solely or jointly
with others during the term of this MOU and during a period of six months after the termination
thereof, which relates to the Project. Work Products shall not include real property or capital
improvements. Work Products includes all deliverables, inventions, innovations, improvements,
or other works of authorship Sub-Recipient or Consultant(s) may conceive of or develop in the
course of this MOU, whether or not they are eligible for patent, copyright, trademark, trade secret
or other legal protection.
b. Sub-Recipient shall submit one (1) electronic copy of all Work Products associated with the
Project to the assigned SCAG Project Manager.
c. SCAG shall own all Work Products and may, at its sole discretion, grant to Sub-Recipient a
perpetual royalty-free, non-assignable, non-exclusive and irrevocable license to reproduce, publish
or otherwise use Work Products related to the Project and developed as part of this MOU;
provided, however, that any reproduction, publishing, or reuse of the Work Products will be at
Sub-Recipient’s sole risk and without liability or legal exposure to SCAG.
11. Amendments
No amendment or variation of the terms of this MOU shall be valid unless made in writing and signed
by the Parties. If an amendment is to become effective before the date of full execution by the Parties,
the effective date of such amendment shall be no earlier than the date that SCAG received the request.
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12. Notices
Any notice or notices required or permitted to be given pursuant to this MOU may be personally served
on the other Party by the Party giving such notice, or may be served by certified mail, return receipt
requested, to the following addresses:
To SCAG: Cindy Giraldo
Chief Financial Officer
Southern California Association of Governments
900 Wilshire Blvd., Suite 1700
Los Angeles, CA 90017
(213) 630-1413
giraldo@scag.ca.gov
SCAG reserves the right to change this designation.
To Sub-Recipient: L. Todd Hileman
City Manager
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
760-776-6488
thileman@palmdesert.gov
13. Insurance
a. Sub-Recipient, at their own expense, shall procure and maintain policies of insurance, or provide
evidence of self-insurance, of the types and amounts below, for the duration of the MOU. The policies
shall state they afford primary coverage.
Insurance Type Requirements Limits
General Liability Commercial General
Liability insurance with
coverage at least as broad as
Insurance Services Office
form CG 00 01.
Not less than $5,000,000 per occurrence,
$10,000,000 general aggregate, for bodily injury,
personal injury, and property damage. The policy
must include contractual liability that has not
been amended. Any endorsement restricting
standard ISO “insured contract” language will
not be accepted.
Automobile
Liability
Automobile insurance at
least as broad as Insurance
Services Office form CA 00
01.
Covering bodily injury and property damage for
all activities of the Sub-Recipient arising out of or
in connection with work to be performed under
this MOU, including coverage for any owned,
hired, non-owned, or rented vehicles, in an
amount not less than $5,000,000 combined single
limit for each accident.
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Workers’
Compensation/
Employer’s Liability
Workers’ Compensation
insurance as required by the
State of California and
Employer’s Liability
Insurance. Not required for
sole proprietors or Sub-
Recipient with no
employees.
Including Occupational Diseases in accordance
with California Law and Employers’ Liability
Insurance with a limit of not less than $1,000,000
each accident.
Professional
Liability Insurance
Professional Liability (Errors
and Omissions) insurance
appropriate to the Sub-
Recipient’s profession.
With limits of not less than $1,000,000 per
occurrence. In addition, it shall be required that the
professional liability insurance policy remain in
effect for three (3) years after the Completion Date
of this MOU.
Builders Risk Upon commencement of
construction and with
approval of SCAG, Sub-
Recipient shall obtain and
maintain builder’s risk
(course of construction) for
the entire duration of the
Project. Not required for
Projects without
construction.
Sub-Recipient shall purchase and maintain
property insurance written on a builder’s risk
“Special Form Cause of Loss” or equivalent
policy form in an amount not to exceed amount
of the Contract, plus the cost of materials supplied
or installed by others on a full replacement cost
basis. The Builder’s Risk policy shall include a
soft cost endorsement that covers soft costs equal
to twenty percent (20%) of the Contract’s full
value. Soft costs are defined as certain expenses,
in addition to labor and materials, required to
complete the Project that has been delayed due to
unexpected physical damage and include, but are
not limited to, the following: legal/accounting
fees, design or other professional fees, financing
costs, taxes, general administration, lease
expenses, permit fees and insurance premiums.
This insurance shall include the interests of the
Additional Insureds as named below, Sub-
Recipient and the subcontractors of every tier on
the Project as insureds. The insurance shall cover
without limitation, loss or damage to the Work
arising from the perils covered under “Special
Form Cause of Loss” form coverage including,
without duplication of coverage for theft, fire,
lightning, explosion, or hail, smoke, aircraft or
vehicles, riot or civil commotion, vandalism,
malicious mischief, collapse, earthquake, flood,
windstorm, false-work, testing and delay of
startup, temporary buildings, property in transit
and while stored at a temporary location, debris
removal including demolition occasioned by
enforcement of any applicable legal
requirements, and shall cover reasonable
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compensation for Sub-Recipient’s services and
expenses required as a result of such loss. During
the Project construction period, Sub-Recipient
and its subcontractors shall mutually waive all
rights of recovery against each other and against
the Additional Insureds identified below for
damages caused by fire or other perils covered by
the Builders Risk “Special Form Cause of Loss”
insurance. All applicable policies of insurance
covering the Work or the property of the Sub-
Recipient or subcontractor shall be endorsed to
provide a waiver of subrogation in favor of the
Additional Insureds identified below, Sub-
Recipient and all subcontractors of every tier.
Further, Sub-Recipient hereby releases, and shall
cause its subcontractors to release, the
Indemnitees identified in section 14 from any and
all claims, losses and damages caused by fire or
other perils covered by the Builders Risk “Special
Form Cause of Loss” insurance. There shall be no
deductible or self-insured retention exceeding
$10,000.00 per loss, other than earthquake or
flood which may have deductible or self-insured
retentions not exceeding $50,000.00. The policy
may have sublimits not less than the following:
Earthquake $5,000,000.00 Flood $1,000,000.00
Pollution Liability Coverage shall provide for
liability arising out of
sudden, accidental, and
gradual pollution, and
remediation. Not required
for Projects without
construction.
The policy limit shall be no less than $1,000,000
per claim and in the aggregate. All activities
contemplated in this MOU shall be specifically
scheduled on the policy as “covered operations.”
The policy shall provide coverage for remediation
of the site in the event of an environmental
contamination event arising out of the materials,
supplies, products, work, operations, or
workmanship.
Products/Completed
Operations
Coverage
Coverage shall extend a
minimum of three (3) years
after project completion. Not
required for Projects without
construction.
Coverage shall be included on behalf of the
insured for covered claims arising out of the
actions of independent contractors. If the insured
is using subcontractors, the Policy must include
work performed “by or on behalf” of the insured.
Policy shall contain no language that would
invalidate or remove the insurer’s duty to defend
or indemnify for claims or suits expressly
excluded from coverage. Policy shall specifically
provide for a duty to defend on the part of the
insurer. SCAG, its officials, officers, agents, and
employees, shall be included as additional
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insureds under the Products and Completed
Operations coverage.
b. Higher Limits: no representation is made that the minimum insurance requirements of this MOU
are sufficient to cover the indemnity or other obligations of Sub-Recipient under this MOU.
c. The general liability and automobile liability policies are to contain, or be endorsed to contain, the
following provisions:
i. SCAG, its officials, employees, and volunteers are to be covered as additional insureds, as
respects to liability arising out of the activities performed by or on behalf of Sub-Recipient;
products and completed operations of Sub-Recipient; premises owned, occupied or used by Sub-
Recipient; or automobiles owned leased, hired or borrowed by Sub-Recipient. The coverage shall
contain no special limitations on the scope of protection afforded to SCAG, its officials, and
employees.
ii. For any claims related to this Project, Sub-Recipient’s insurance coverage shall be primary
insurance as respects SCAG, its officials, and employees. Any insurance or self-insurance
maintained by SCAG shall be excess of Sub-Recipient’s insurance and shall not contribute with
it.
iii. Any failure to comply with reporting or other provisions of the policies including breaches of
warranties shall not affect coverage provided to SCAG, its officials, and employees.
iv. Sub-Recipient’s insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer’s liability.
d. The Workers’ Compensation and Employer’s Liability policies shall include a waiver of subrogation
endorsement in favor of SCAG, its, officials, employees, and volunteers.
e. Any deductibles or self-insured retentions in amounts over $10,000 must be declared to and approved
by SCAG.
f. Insurance is to be placed with California admitted insurers with a current A.M. Best’s rating of no
less than A and be admitted, unless otherwise approved by SCAG.
g. Sub-Recipient shall furnish SCAG with original endorsements and certificates of insurance
evidencing coverage required by this clause. All documents are to be signed by a person authorized
by that insurer to bind coverage on its behalf. All documents are to be received and approved by
SCAG before work commences. Upon request of SCAG at any time, Sub-Recipient shall provide
complete, certified copies of all required insurance policies, including endorsements affecting the
coverage required by these specifications.
h. Sub-Recipient agrees to ensure that its Consultant(s) provide the same minimum insurance
coverage and endorsements required of Sub-Recipient. Sub-Recipient agrees to monitor and
review all such coverage and assumes all responsibility for ensuring that such coverage is provided
in conformity with the requirements of this Section. However, in the event Sub-Recipient’s
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Consultant(s) cannot comply with this requirement, which proof must be submitted to SCAG, Sub-
Recipient shall be required to ensure that its Consultant(s) provide and maintain insurance
coverage and endorsements sufficient to the specific risk of exposure involved with Consultant(s)
scope of work and services, with limits less than required of the Sub-Recipient, but in all other
terms consistent with the Sub-Recipient’s requirements under this MOU. This provision does not
relieve Sub-Recipient of its contractual obligations under the MOU and/or limit its liability to the
amount of insurance coverage provided by its Consultant(s). This provision is intended solely to
provide Sub-Recipient with the ability to utilize Consultant(s) who may be otherwise qualified to
perform the work or services but may not carry the same insurance limits as required of Sub-
Recipient under this MOU given the limited scope of work or services provided by the
Consultant(s). Sub-Recipient agrees that upon request, all agreements with Consultant(s) will be
submitted to SCAG for review.
14. Indemnification
Sub-Recipient shall fully defend, indemnify and hold harmless SCAG, its members, officers,
employees, and agents from any and all claims, losses, liabilities, damages, expenses, suits or actions
including attorneys’ fees, brought forth or arising under any theories or assertions of liability, occurring
by or resulting from or otherwise related to the Project or this MOU. Such obligations shall not,
however, extend to any claims, losses, liabilities, damages, expenses, suits, or actions that arise from
SCAG’s gross negligence or willful misconduct.
15. Disputes
Except as otherwise provided in this MOU, any dispute arising under this MOU which is not resolved
by mutual agreement shall be decided through binding arbitration by a three (3) member panel in
accordance with the rules of the American Arbitration Association and as provided in this provision.
If this provision differs from the rules of the American Arbitration Association, then this provision
shall control. Sub-Recipient shall continue with the responsibilities under this MOU during any
dispute until the dispute is resolved. A judgment upon the award rendered by arbitration may be
entered into any court having jurisdiction thereof. The arbitration panel shall have the authority to
grant any remedy or relief that would have been available to the Parties had the matter been heard in
a court of law. Following arbitration, the arbitration panel shall prepare a written decision containing
the essential findings and conclusions on which the award is based so as to ensure meaningful judicial
review of the decision. All expenses and fees for the arbitrator and expenses for hearing facilities and
other expenses of arbitration shall be borne equally by both Parties unless they agree otherwise or
unless the arbitrator in the award assesses such expenses against one of the parties or allocates such
expenses other than equally between the Parties. Either Party may bring an action in court to compel
arbitration under this MOU and to enforce an arbitration award.
16. Noncompliance
a. In the event of nonperformance or noncompliance with any requirement of this MOU, including
but not limited to Project eligibility, schedule, deliverables, or milestone timelines, as outlined in
the most current fully executed SOW Approval Form, SCAG may:
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i. Issue a written notice to stop work. If such notice is provided, Sub-Recipient and its
Consultant(s) shall immediately cease all work under the MOU. SCAG has the sole discretion
to determine that Sub-Recipient is in compliance with the terms and conditions after a stop
work order, and to deliver a written notice to Sub-Recipient to resume work under this MOU.
ii. Require repayment of the Grant Funds.
iii. Terminate this MOU pursuant to Section 17.
b. Notwithstanding the provisions set forth above, or any other provision contained in this MOU, no
remedy conferred by any of the specific provisions of this MOU or the SOW Approval Form, is
intended to be exclusive of any other remedy, and each and every remedy shall be cumulative and
shall be in addition to every other remedy existing at law or in equity or by statute or otherwise.
17. Termination of MOU
a. Termination for Cancellation or Reduction in REAP 2.0 Funding. In the event HCD terminates or
cancels funding to SCAG, this MOU is deemed to be terminated and SCAG shall be relieved of
any and all obligations under this MOU as of the effective date of HCD’s termination. In the event
HCD reduces funding to SCAG, SCAG shall have the unilateral right to stop work, proportionally
reduce funding to Sub-Recipient or terminate this MOU.
b. Termination for Convenience. Either Party may terminate this MOU at any time by giving written
notice to the other party of such termination at least thirty (30) calendar days before the effective
date of such termination. Should SCAG terminate the MOU for convenience, upon receipt of the
notice of termination, Sub-Recipient shall immediately take action to avoid incurring any
additional obligation costs or expenses except as may be necessary to terminate its activities or the
activities of its Consultant(s). SCAG shall pay Sub-Recipient its reasonable and allowable costs
through the effective date of termination and is not liable for any expenses after termination,
including any costs associated with Consultant(s). In such event, all finished or unfinished Work
Products shall be provided to SCAG.
c. Termination for Cause. If through any cause, either Party shall fail to timely and adequately fulfill
its obligations under this MOU, or if either Party violates any of the covenants, terms, or
stipulations of this MOU, the non-breaching Party shall thereupon have the right to terminate the
MOU by giving not less than ten (10) calendar days written notice to the breaching Party of the
intent to terminate and specifying the effective date thereof. The non-breaching Party shall provide
a reasonable opportunity for the breaching Party to cure prior to termination. In no event shall such
opportunity to cure extend beyond the term of the MOU. In the event that SCAG invokes this
termination for cause provision, Sub-Recipient shall reimburse SCAG for all funds provided for
the Project and all finished or unfinished Work Products shall be provided to SCAG at its option.
18. Records Retention
a. Sub-Recipient and its Consultant(s) shall maintain and make available, in accordance with Section
19 of this MOU, all source documents, books and records connected with the Project,
documentation of its normal procurement policy and competitive procurement bid process and
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completed procurements related to the Project, all work performed under this MOU, all evidence
of environmental clearance, and evidence demonstrating the funding was used for the appropriate
purposes for a minimum of five (5) years after December 31, 2026. Wherever practicable, such
records should be collected, transmitted, and stored in open and machine-readable formats.
b. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started
before the expiration of the required record retention period, all records shall be retained and made
available by Sub-Recipient and its Consultant(s) for five (5) years after: (a) the conclusion or
resolution of the matter; (b) the date an audit resolution is achieved for each annual SCAG OWP;
or (c) December 31, 2026, whichever is later.
19. Monitoring and Audits
a. SCAG may monitor expenditures and activities of Sub-Recipient and its Consultant(s) as SCAG
deems necessary to ensure compliance with the MOU, the Statutes, the REAP 2.0 Guidelines and
the Program Guidelines.
b. At any time during the term of this MOU, SCAG, HCD, the California Department of General
Services, the California Bureau of State Audits, or their designated representatives may perform
or cause to be performed a financial audit of any and all phases of the Project. At their request,
Sub-Recipient shall provide, at its own expense, a financial audit prepared by an independent
certified public accountant.
c. Sub-Recipient agrees that SCAG, HCD, the California Department of General Services, the
California Bureau of State Audits, or their designated representatives shall have the right to review,
obtain, and copy all records and supporting documentation related to the performance of this
MOU. Sub-Recipient agrees to provide any relevant information requested. Copies shall be made
and furnished to SCAG upon request at no cost to SCAG.
d. Sub-Recipient agrees to permit SCAG, HCD, the California Department of General Services, the
California Bureau of State Audits, or their designated representatives access to its premises, upon
reasonable notice, during normal business hours for the purpose of interviewing employees who
might reasonably have information related to such records and inspecting and copying such books,
records, accounts, and other material that may be relevant to a matter under investigation for the
purpose of determining compliance with this MOU, the Statutes, the REAP 2.0 Guidelines, or
applicable state and federal laws, rules, and regulations.
e. If there are audit findings from SCAG or HCD’s audit, Sub-Recipient must submit a detailed
response acceptable to SCAG or HCD for each audit finding within ninety (90) days of the audit
finding report.
20. Small Business and Disabled Veteran Business Enterprise Participation
a. If for this MOU Sub-Recipient made a commitment to achieve small business participation, then
Sub-Recipient must within 60 days of receiving final payment under this MOU (or within such
other time period as may be specified elsewhere in this MOU) report to SCAG the actual
percentage of small business participation that was achieved. (Gov. Code § 14841.)
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b. If for this MOU Sub-Recipient made a commitment to achieve disabled veteran business enterprise
(“DVBE”) participation, then Sub-Recipient must within 60 days of receiving final payment under
this MOU (or within such other time period as may be specified elsewhere in this MOU) certify in
a report to SCAG: (1) the total amount the Sub-Recipient received under the MOU; (2) the name
and address of the DVBE(s) that participated in the performance of the MOU; (3) the amount each
DVBE received from the Sub-Recipient; (4) that all payments under the MOU have been made to
the DVBE; and (5) the actual percentage of DVBE participation that was achieved. A person or
entity that knowingly provides false information shall be subject to a civil penalty for each
violation. (M&V Code § 999.5(d); Gov. Code § 14841.)
21. Compliance with Laws, Rules, and Regulations
a. Sub-Recipient agrees to comply with all federal, state, and local laws, rules, and regulations
applicable to this MOU.
b. Non-Discrimination/Equal Employment Opportunity
i. During the performance of this MOU, Sub-Recipient assures that no person shall be denied
the MOU’s benefits, be excluded from participation or employment, be denied Project
benefits, or be subjected to discrimination based on race, religious creed, color, national
origin, ancestry, physical disability, mental disability, medical condition, genetic information,
marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or
military and veteran status, under the Project or any program or activity funded by this MOU,
as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 U.S.C. §§
3601-20) and all implementing regulations, the Americans with Disabilities Act (“ADA”) of
1990 (42 U.S.C. §§ 12101 et seq.) and all applicable regulations and guidelines issued
pursuant to the ADA, and the Age Discrimination Act of 1975 and all implementing
regulations. Sub-Recipient shall ensure that the evaluation and treatment of employees and
applicants for employment are free of such discrimination.
ii. Sub-Recipient shall comply with the provisions of the Fair Employment and Housing Act
(Gov. Code § 12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs. tit. 2,
§ 11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the
Government Code (Gov. Code §§ 11135-11139.5), and the regulations or standards adopted
by HCD to implement such article.
iii. Sub-Recipient shall permit access by representatives of the Department of Fair Employment
and Housing, SCAG, and HCD upon reasonable notice at any time during the normal business
hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and
all other sources of information and its facilities as the Department of Fair Employment and
Housing, SCAG, or HCD shall require to ascertain compliance with this Section.
iv. Sub-Recipient shall give written notice of its obligations under this Section to labor
organizations with which they have a collective bargaining or other agreement.
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v. Sub-Recipient shall adopt and implement affirmative processes and procedures that provide
information, outreach, and promotion of opportunities in the Project to encourage
participation of all persons regardless of race, color, national origin, sex, religion, familial
status, or disability. This includes, but is not limited to, a minority outreach program to ensure
the inclusion, to the maximum extent possible, of minorities and women, and entities owned
by minorities and women, as required by 24 C.F.R. § 92.351.
c. Recycling Certification. Sub-Recipient shall certify in writing under penalty of perjury, the
minimum, if not exact, percentage of post-consumer material as defined in the Public Contract
Code Section 12200, in products, materials, goods, or supplies offered or sold to SCAG regardless
of whether the product meets the requirements of Public Contract Code Section 12209. With
respect to printer or duplication cartridges that comply with the requirements of Section 12156(e),
the certification required by this subdivision shall specify that the cartridges so comply (Pub.
Contract Code § 12205).
d. Anti-Trust Claims. Sub-Recipient, by signing this MOU, hereby certifies that if these services or
goods are obtained by means of a competitive bid, the Sub-Recipient shall comply with Title 1,
Division 5, Chapter 11 of the California Government Code (Gov. Code §§ 4550-4554).
e. Child Support Compliance Act. If the Grant Funds provided under this MOU are in excess of
$100,000, Sub-Recipient acknowledges in accordance with Public Contract Code 7110, that:
i. Sub-Recipient recognizes the importance of child and family support obligations and shall
fully comply with all applicable state and federal laws relating to child and family support
enforcement, including, but not limited to, disclosure of information and compliance with
earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part
5 of Division 9 of the Family Code; and
ii. Sub-Recipient, to the best of its knowledge is fully complying with the earnings assignment
orders of all employees and is providing the names of all new employees to the New Hire
Registry maintained by the California Employment Development Department.
f. Priority Hiring Considerations. If this MOU includes services in excess of $200,000, the Sub-
Recipient shall give priority consideration in filling vacancies in positions funded by the MOU to
qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with
Pub. Contract Code §10353.
g. Loss Leader. If this MOU involves the furnishing of equipment, materials, or supplies then the
following statement is incorporated: It is unlawful for any person engaged in business within this
state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the
Business and Professions Code. (PCC § 10344(e).)
22. Public Works and Construction
Without limiting the generality of Section 21.a., Sub-Recipient agrees to ensure compliance with all
applicable legal authority regarding construction standards and requirements, including but not limited
to the following:
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a. Labor Code Requirements
i. Sub-Recipient is hereby put on notice that the Project under the MOU may qualify as a public
works project and Sub-Recipient will therefore be required to determine whether the Project falls
under a classification that would require payment of prevailing wages. Services constituting
public works are described in California Labor Code Sections 1720-1861, as may be amended or
recodified by legislative action from time-to-time.
ii. If a Project qualifies as a public works project, Sub-Recipient shall be the Awarding Body for the
public works project and required to comply with all requirements applicable to the Awarding
Body.
iii. If Sub-Recipient or its Consultant(s) will perform services that require payment of prevailing
wages, they are required to register with the California Department of Industrial Relations (DIR)
in order to be compliant with the law. Neither Sub-Recipient nor its Consultant(s) may work on
a public works project without a current and active DIR registration.
iv. In the event that Sub-Recipient or its Consultant(s) engages in the performance of a public work
under this MOU as defined by Labor Code Section 1770 et seq., Sub-Recipient and its
Consultant(s) shall be required to cause such employees who are entitled to prevailing wages, to
be paid the required wage amounts pursuant to applicable state law. Sub-Recipient and its
Consultant(s) shall ensure compliance with the State of California’s General Prevailing Wage
Rate requirements in accordance with California Labor Code, Section 1770, and all Federal, State,
and local laws and ordinances applicable to the work.
v. Sub-Recipient further acknowledges that any work that qualifies as a public work within the
meaning of California Labor Code Section 1720 shall require Sub-Recipient and its Consultant(s)
to comply with the provisions of California Labor Code Sections 1775 et seq. Sub-Recipient
agrees to ensure compliance with Labor Code Section 1776 regarding retention and inspection of
payroll records and noncompliance penalties, Labor Code Section 1777.5 regarding employment
of registered apprentices, and Labor Code Section 1813 regarding forfeiture for violations of the
maximum hours per day and per week provisions contained in the same chapter.
b. Sub-Recipient shall comply with all applicable federal, state, and local procurement requirements
for public works and construction projects and shall advertise, open bids, award, and approve all
construction contracts in accordance with the California Public Contract Code and the California
Labor Code.
c. All construction contracts for the Project shall be administered and managed by Sub-Recipient.
Sub-Recipient shall prepare or have prepared a detailed schedule of performance for the Project,
ensuring that all construction is completed within the timeline allowed by the MOU. Sub-Recipient
shall be responsible for requiring the construction contractor to furnish any applicable labor and
material bonds and payments and performance bonds naming the Sub-Recipient as obligee, and
SCAG as additional obligee, or an insurance policy in lieu of such bonds.
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d. Sub-Recipient agrees to procure any and all permits, licenses and approvals necessary to complete
the Project, including those necessary to perform design, construction, operation and maintenance,
and to comply with all California Environmental Quality Act (CEQA) and National Environmental
Policy Act (NEPA) requirements applicable to the Project. Sub-Recipient shall pay all charges and
fees and give all notices necessary or incidental to the Project.
e. Sub-Recipient shall prepare, or have prepared, all plans, specifications and estimates for the Project
and ensure that the Project complies with all applicable federal and state accessibility requirements,
including but not limited to the Americans with Disabilities Act, including its implementing
regulations at 24 CFR Part 8 and any amendments, and California Government Code Section 4450,
and applicable requirements and guidance provided in Title 24 of the California Code of Regulations,
for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility
and usability.
f. Sub-Recipient shall conduct all necessary due diligence for the Project, including but not limited to
performing necessary environmental assessments/review of environmental hazard reports,
conducting engineer/geotechnical review, commissioning title reports to identify and evaluate the
condition of title and encumbrances on the subject property, including but not limited to any
covenants conditions and restrictions, determining the entity(ies) with site control, including whether
any third parties have ownership or site control rights, and determining the suitability for the Project.
g. Sub-Recipient shall ensure any contractors or subcontractors are paid in accordance with applicable
laws and regulations.
h. Sub-Recipient shall comply with the procedure set forth in Public Contracts Code Section 9204 for
processing contractor claims, paying undisputed amounts, and requiring mediation of disputed
amounts.
i. Sub-Recipient shall be responsible for ensuring ongoing maintenance of the Project after completion.
SCAG shall not be responsible for ongoing maintenance of the Project after completion.
23. Conflict of Interest
The Parties shall comply with all applicable Federal and State conflict of interest laws, regulations,
and policies.
24. Independent Contractor
Sub-Recipient and its Consultant(s) shall be independent contractors in the performance of this MOU,
and not officers, employees, or agents of SCAG.
25. Assignment
Neither Party shall assign any rights or interests in this MOU, or any part thereof, without the written
consent of each Party to this MOU, which consent may be granted, withheld, or conditioned in the
consenting Party’s sole and absolute discretion. Any assignment without such written consent shall be
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void and unenforceable. The covenants and agreement of this MOU shall inure to the benefit of and
shall be binding upon each of the Parties and their respective successors and assignees.
26. Release of Information
a. Subject to any provisions of law, including but not limited to the California Public Records Act,
any Work Product or materials deemed confidential by either Party shall be held confidential by
the receiving Party who shall safeguard such confidential materials from unauthorized disclosure,
using the same standard of care to avoid disclosure as the receiving Party treats its confidential
information, but in no case less than reasonable care. Nothing furnished to either Party which is
otherwise known or is generally known, or has become known, to the related industry shall be
deemed confidential.
b. Sub-Recipient shall not release any information or Work Products to a third party or otherwise
publish or utilize any information or Work Products obtained or produced by it as a result of or in
connection with the performance of services under this MOU without the prior written
authorization of SCAG, except as provided under this MOU or as required by law (including,
without limitation, pursuant to the California Public Records Act).
c. All public-facing communications materials relating to this MOU, or its subject matter, shall
acknowledge SCAG. Communications materials include, but are not limited to, site signage,
printed information materials, print and online publications, websites, advertisements, video,
public service announcements, social media postings, events, media advisories, news releases, and
all other related materials.
d. To ensure consistency of public information about SCAG programs and funded work products,
Sub-Recipient is required to notify and coordinate with SCAG Project Manager who will
coordinate with SCAG’s Manager of Media & Public Affairs or a specified designee on any media
inquiries or plans for proactively providing information to media outlets.
e. All communication materials must be provided to SCAG Project Manager prior to completion so
that inclusion of this element can be confirmed.
27. Non-Exclusivity
Nothing herein is intended nor shall be construed as creating an exclusive arrangement between SCAG
and Sub-Recipient. This MOU shall not restrict SCAG from acquiring similar, equal or like services
from other entities or sources.
28. Severability
If any provision of this MOU is held to be illegal, invalid, or unenforceable, in whole or in part, such
provision shall be modified to the minimum extent necessary to make it legal, valid, and enforceable,
and the legality, validity, and enforceability of the remaining provisions shall not be affected thereby.
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29. Survival
The following sections survive expiration or termination of this MOU:
Section 5 (Funding)
Section 10 (Work Products)
Section 12 (Notices)
Section 13 (Insurance)
Section 14 (Indemnification)
Section 15 (Disputes)
Section 18 (Records Retention)
Section 19 (Monitoring and Audits)
Section 21 (Compliance with Laws, Rules, and Regulations)
Section 22 (Public Works and Construction)
Section 23 (Conflict of Interest)
Section 26 (Release of Information)
Section 31 (Jurisdiction and Venue)
Section 32 (Waiver)
30. Flow-Down Provisions
Sub-Recipient shall include the following provisions in all agreements entered into containing funds
provided under this MOU, require the provisions below that survive expiration or termination of this
MOU to survive, and shall include a requirement in all agreements that each of them in turn include
the requirements in all contracts and subcontracts they enter into to perform work under the Project.
SCAG does not have a contractual relationship with Sub-Recipient’s Consultant(s), and Sub-Recipient
shall be fully responsible for monitoring and ensuring compliance with these provisions.
Section 3.c. (Scope of Work and Sub-Recipient’s Responsibilities – nexus to REAP 2.0)
Section 3.e. – 3.g. (Scope of Work and Sub-Recipient’s Responsibilities – procurements)
Section 3.k. (Scope of Work and Sub-Recipient’s Responsibilities – penalty of perjury)
Section 5.e. (Funding – repayment of ineligible costs)
Section 6 (Invoices)
Section 7 (Reporting)
Section 8 (Accounting)
Section 9 (Allowable Uses of Grant Funds)
Section 10 (Work Products)
Section 13 (Insurance)
Section 14 (Indemnification)
Section 18 (Records Retention)
Section 19 (Monitoring and Audits)
Section 20 (Small Business and Disabled Veteran Business Enterprise Participation)
Section 21 (Compliance with Laws, Rules, and Regulations)
Section 22 (Public Works and Construction)
Section 23 (Conflict of Interest)
Section 24 (Independent Contractor)
Section 25 (Assignment)
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Section 26 (Release of Information)
Upon SCAG’s request, Sub-Recipient shall provide SCAG a copy of any such agreement.
31. Jurisdiction and Venue
This MOU shall be deemed an agreement under the laws of the State of California and for all purposes
shall be interpreted in accordance with such laws. Subject to the provisions in Section 15, the Parties
hereby agree and consent to the exclusive jurisdiction of the courts of the State of California and that
the venue of any action brought thereunder shall be Los Angeles County, California.
32. Waiver
No delay or failure by either Party to exercise or enforce at any time any right or provision of this
MOU shall be considered a waiver thereof of such Party’s right thereafter to exercise or enforce each
and every right and provision of this MOU. A Waiver to be valid shall be in writing but need not be
supported by consideration. No single waiver shall constitute a continuing or subsequent waiver.
33. Standard of Care
Sub-Recipient and its Consultant(s) shall perform the work required for the Project under this MOU
in accordance with generally accepted industry standards, practices, and principles applicable to such
work.
34. Force Majeure
Neither Party shall be liable or deemed to be in default for any delay or failure in performance under this
MOU or interruption of services resulting, directly or indirectly, from acts of nature, civil or military
authority, acts of public enemy, war, strikes, labor disputes, pandemics, or any other similar cause beyond
the reasonable control of the Parties, provided that the Party seeking to delay or excuse its performance
as a result of such event shall notify the other Party in writing of such circumstances within not more than
ten (10) days following the first occurrence of the event forming the basis of the delay or excuse of
performance. In the event that the Party seeking to delay or excuse its performance fails to timely deliver
the notice described in the previous sentence, then such event shall not relieve the Party from its timely
performance.
35. Entire MOU
This MOU, comprised of these terms and conditions, the attached exhibits, and any properly executed
amendments, represents and contains the entire agreement of the Parties with respect to the matters
set forth herein. This MOU supersedes any and all prior negotiations, discussions and, if any, previous
agreements between the Parties with respect to the matters set forth herein.
36. Execution
This MOU, or any amendments related thereto, may be executed in multiple counterparts, each of
which shall be deemed to be an original, but all of which shall constitute one and the same agreement.
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42
MOU No. : M-035-25
SCAG Project/OWP No.: 305-4925.01
Page 24
The signature page of this MOU or any amendments may be executed by way of a manual or
authorized digital signature. Delivery of an executed counterpart of a signature page to this MOU or
an amendment by electronic transmission scanned pages shall be deemed effective as a delivery of a
manually or digitally executed counterpart to this MOU or any amendment.
37. Effective Date
This MOU shall be effective as of the last date on which the document is executed by all Parties.
38. Authority
Sub-Recipient warrants and certifies that it possesses the legal authority to execute this MOU and to
undertake the Project, and, if applicable, that a resolution, motion, or similar action has been fully
adopted or passed, as an official act of Sub-Recipient's governing body, authorizing receipt of the
Grant Funds, and directing and designating the authorized representative(s) of Sub-Recipient to act in
connection with the Project and to provide such additional information as may be required by SCAG.
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SIGNATURE PAGE TO
MEMORANDUM OF UNDERSTANDING
No. M-035-25
IN WITNESS WHEREOF, the Parties have caused this Memorandum of Understanding to be executed
by their duly authorized representatives as of the dates indicated below:
SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (“SCAG”)
By: _______________________________________________ _________________
Cindy Giraldo Date
Chief Financial Officer
APPROVED AS TO FORM:
By: _______________________________________________ _________________
Richard Lam Date
Senior Deputy Legal Counsel
CITY OF PALM DESERT (“Sub-Recipient”)
By: _______________________________________________ _________________
L. Todd Hileman Date
City Manager
APPROVED AS TO FORM:
By: _______________________________________________ _________________
Isra Shah Date
City Attorney
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42
3/17/2025
3/17/2025
3/18/2025
3/18/2025
Exhibit A – Scope of Work
Project Name: Flood Control Infrastructure for Housing Need
Project Description:
The project will expand the City’s utility capacity to mitigate future severe flooding that could damage
ongoing developments and existing affordable housing infrastructure along the I‐10 corridor and the
project site, which covers approximately 6.5 linear miles along Interstate 10. The project includes a
match of $6.5 million to fully acquire all the proposed lots which will house the proposed flood control
measures. Planned improvements include design and construction of the following elements:
stormwater conveyance systems, flood control barriers, retention and detention basins, and stormwater
parks.
Final Deliverable:
Site Acquisition Executed Agreements
100% Design Plans, Specifications, and Cost Estimates
Final Environmental Clearance
Project Construction Monthly Reports
Survey and written summary of visual inspection
Notice of Completion
Project Budget: $8,000,000
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42
Exhibit B – Scope of Work Approval Form
Regional Early Action Planning Grants of 2021 (REAP 2.0)
[Full name of program]
Scope of Work Approval Form - Project Summary
1
Subrecipient: [Grantee Name]
Project #1: [Project Name]
☒ Original Scope of Work Approval
☐ Revision Requested to Add, Remove, or Change Project Manager
☐ Revision Requested to Project Tasks (Please check all that apply)
☐ Revise/Delete a Previously Approved Task ☐ Revise Task Budget
☐ Change Project/Task Date ☐ Change in Deliverable (Interim)
☐Other (Please describe)
SCAG Approval Date: ___________________________
Revision No. NUMBER
Revision Effective Date: _________________________
Original Approved Summary of Projects Tasks (approved on DATE)
Project/Activity Tasks Outline
Task and sub-
tasks
Staff
Costs
Consultant
Costs
Total
Costs
Begin
Date
End
Date
Deliverables
1.0 Project
Administration
2.0 Project
Management
3.0 [task name]
Total Project
Cost
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42
Exhibit B – Scope of Work Approval Form
Regional Early Action Planning Grants of 2021 (REAP 2.0)
[Full name of program]
Scope of Work Approval Form - Project Summary
2
Requested Revisions to Project Tasks
If a revision is requested, please also update the project/activity task outline(s) below and highlight the
changes.
Revised Project/Activity Tasks Outline
Task and sub-
tasks
Staff
Costs
Consultan
t Costs
Total
Costs
Begin
Date
End
Date
Deliverables
Total Project
Cost
Route all budget changes to Accounting and B&G.
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42
Exhibit B – Scope of Work Approval Form
Regional Early Action Planning Grants of 2021 (REAP 2.0)
[Full name of program]
Scope of Work Approval Form - Project Summary
3
Signatures below to approve revisions also indicate approval of any modifications to subsequent pages.
Revision Approval Requested By: Revision Approved By:
Project Manager SCAG Department Manager
Name / Title Name / Title
_____________________________________ ______________________________________
Signature Date Signature Date
Revision Approved By:
SCAG Deputy Director or Authorized Designee
Name / Title
________________________________________
Signature Date
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42
Exhibit B – Scope of Work Approval Form
Regional Early Action Planning Grants of 2021 (REAP 2.0)
[Full name of program]
Scope of Work Approval Form - Project Summary
4
Project Metrics
Each REAP 2.0 project requires metrics to quantitatively measure the project’s outcome. Project metrics
selected on this form will be included in the REAP 2.0 SRP2 quarterly progress reporting form. Please select
all metrics that will apply to your approved projects:
1. Sample
☐ Sample
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42
Exhibit B – Scope of Work Approval Form
Regional Early Action Planning Grants of 2021 (REAP 2.0)
[Full name of program]
Scope of Work Approval Form - Project Summary
5
1 [name of grantee: project name]
_____ (Insert Number of) Procurements Expected for this Project
Brief Description of Project: (Pulled from project application)
Revision Summary:
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42
Exhibit B – Scope of Work Approval Form
Regional Early Action Planning Grants of 2021 (REAP 2.0)
[Full name of program]
Scope of Work Approval Form - Project Summary
6
Signatures on this page indicate approval of the initial Scope of Work Approval Form in its
entirety. Revisions do not require new signatures in this section.
Initial SAF Approved By: Initial SAF Approved By: SRP2
Project Manager SCAG Department Manager
Name / Title Name / Title
_____________________________________ ______________________________________
Signature Date Signature Date
Initial SAF Approved By:
SCAG Deputy Director or Authorized Designee
Name / Title
________________________________________
Signature Date
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42
Exhibit C
Invoice Submittal Requirements
SCAG will provide the Sub-Recipient an Invoice Template in Excel file format. The Invoice
Template must be used to request reimbursement from SCAG. Detailed submittal instructions for
filling out and submitting are provided in the Invoice Template. The Invoice Template may be
amended from time to time and does not guarantee that any invoices will be approved or that the
Sub-Recipient will receive payment. The Invoice Template will require information and supporting
documentation such as, but not limited to:
a. SCAG’s “Bill To” information as stated in the above paragraph “b.” of this section;
b. Invoice number specified by the Sub-Recipient. The invoice number must be unique for
each invoice submitted;
c. Invoice date;
d. Billing period specified with beginning and ending dates. The beginning date must not
be sooner than the MOU Effective Date of the Agreement, or within any previous billing
dates;
e. Total amount due for the billing period;
f. MOU Number, SCAG Project/OWP Number, and the MOU Term Date;
g. Project Title;
h. Agency Name, Agency Project Manager Name, and Project Manager Email Address; and
i. SCAG Project Manager Name.
j. Progress report
k. Cost by task and/or cost category
l. Detailed description of Other Direct Charges
m. Proof of payment
n. Timesheets
o. Payroll report/Payroll registers
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42
Exhibit D – Sub-Recipient Report Template
PENDING GUIDANCE FROM HCD
Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42