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2008/07/22 City Council Resolution 2008-119RESOLUTION NO. 2008-119 RESOLUTION OF THE COUNCIL OF THE CITY OF ROHNERT PARK AUTHORIZING AND ACCEPTING A GRANT FROM THE DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL FOR GRANT ASSISTANCE PROGRAM FUNDS WHEREAS, the City Council of the City of Rohnert Park desires to undertake a certain project designated as the Rohnert Park Department of Public Safety, Cotati Police Department, and Sonoma State University Joint ABC Grant to be funded from funds made available through the Grant Assistance Program (GAP) administered by the State of California Department of Alcoholic Beverage Control (hereafter referred to as ABC); NOW, THEREFORE, BE IT RESOLVED that Sergeant Mike Bates of the City of Rohnert Park Department of Public Safety is authorized, on its behalf to submit the attached proposal to ABC and Public Safety Director Thomas Bullard is authorized to execute on behalf of the City Council of the City of Rohnert Park the attached contract, including any extensions or amendments thereof and any subsequent contract with the State in relation thereto. IT IS AGREED that any liability arising out of the performance of this contract, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency. The State of California and ABC disclaim responsibility for any such liability. BE IT FURTHER RESOLVED that grant funds received hereunder shall not be used to supplant expenditures controlled by this body. IT IS ALSO AGREED that this award is not subject to local hiring freezes. DULY AND REGULARLY ADOPTED by the City Council of the City of Rohnert Park this 22nd day of July, 2008. AYES: FIVE (5) Council Members. Breeze, Smith, Stafford, Vidak- Martinez and NOES: NONE (o) Mayor Mackenzie ABSENT: NONE (0) ABSTAIN: NONE (o) CITY OF ROHNERT PARK e-% STATE OF CALIFORNIA STANDARD AGREEMENT STD 213 (Rev 06/03) AGREEMENT NUMBER 08G -LA42 REGISTRATION NUMBER This Agreement is entered into between the State Agency and the Contractornamed below:,.,-..--- STATE AGENCY S NAME Department of Alcoholic Beverage Control - - -'- CONTRACTOR'S NAME - - - - - — Rohnert Park Department of Public Safety __.. ___ —_.� -- - - - - -- - - -- - -- — _ - -- - .... — - -- -- - - -- - - -- - ------------ _ --- ....... ..... 2, The term of this Agreement is: July 1, 2008, through June 30, 2009 3. The maximum amount $ 57,020.00 ---- -____— -------------------------_-- of this Agreement is: 4. The parties agree to comply with the terms and conditions of the following exhibits which are by this reference mac a part of the Agreement: Exhibit A - Scope of Work/Project Narrative 4 pages Exhibit B - Budget Estimate 1 page Exhibit C - General Terms and Conditions GTC 307* Exhibit D - Payment Provisions 2 pages Exhibit E - Special Terms and Conditions 1 page Items shown with an Asterisk ( *) are hereby incorporated by reference and made part of this agreement as if attached hereto. These documents can be viewed at www. documen1s .dgs.ca.gov 1 ots /GTG307doc IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. CONTRACTOR ---- - - - - -- -_.�._ CONTRACTOR'S NAME (Ifotherthan an individual, state ahethera corporation, partnership, etc.) Rohnert Park Department of Public Safety BX �pitorized Signature) DATE SIGNED (Do not type) PRINTED NAME AN ITLE ERSON SIGNING Thomas R. B llar irector of Public ADDRESS 500 City Center Drive Rohnert Park, CA 94928 STATE OF CALIFORNIA 4GENCY NAME Department of Alcoholic Beverage Control 3Y (Authorized Signature) 'RINTED NAME AND TITLE OF PERSON SIGNING Ed Jimenez, Assistant Director, Administration ADDRESS 3927 Lennane Drive, Suite 100 Sacramento, CA 95834 DATE SIGNED (Do not type) California Department of General Services Use Only ® Exempt per PROTECT NARRATIVE - ABC (GAP) GRANT - Fiscal Year 2008/2009 "A cooperative effort" Summary: Exhibit A The Cities of Rohnert Park and Cotati and Sonoma State University are in the San Francisco Bay Area. All share common borders. The populations within the two cities and university have grown 10 -15% since the last census (2000) and are projected . to grow by 10 % -15% in the next five years. The City of Rohnert Park has a total area of approximately 6.43 miles. As of the census of 2000, there were 42,236 people, 15,503 households, and 9,797 families residing in the City of Rohnert Park. The population density was 6,564.5 people per square mile (2,534.6/km2). The racial makeup of the city was 80.28% White, 1.97 %Q African American, 0.78 % Native American, 5.58% Asian, 0.42% Pacific Islander, 5.72% from other races, and 5.25% fro_ m two or more races. Hispanic or Latino of any race was 13.57% of the population. The City of Cotati has a total area of approximately 1.89 miles. As of the census of 2000, there were 6,471 people, 2,532 households, and 1,607 families residing in the City of Cotati. The population density was 3,444/sq mi (1,329/km2). There were 2,585 housing units at an average density of 1,376/sq mi (531/km2). The racial makeup of the city was 83.56% White, 2.33% African American, 0.90% Native American, 3.601/o Asian, 0.23 % Pacific Islander, 4.40% from other races; and 4.98% from two or more races. Hispanic or-Latino of any race was 12.52% of the population. As of the fall 2007 semester, Sonoma State University had a total student population of 7,606. The racial make -up of the student population is as follows: 5,096 are White,.853 are Hispanic, 177 African Americans, 62 Native Americans, 398 are of Asian or Pacific Islander decent, and 1,020 from other races. The Rohnert Park Department of Public Safety is the largest agency with 81 sworn officers. The City of Cotati has 13 sworn members. The sworn staffing at Sonoma State University Police is 16. All sworn personnel have been trained in or currently serve as general law enforcement, traffic enforcement, criminal investigations, community oriented policing, crime prevention, school resource officer, gang enforcement, narcotics, canine officer, and street crimes. Rohnert Park Officers also perform fire related services as firefighters. All Rohnert Park Officers are . cross trained in fire suppression, basic life support medical care, and fire prevention; 14 officers are assigned full- time, on a rotational basis, to the fire division. This diversity holy makes Rohnert Parr Officers unique amongst other officers in the State of California. The City of Rohnert Park currently has 69 (24 Off -Sale and 45 On -Sale) businesses licensed to sell alcoholic beverages as opposed to Cotati with 54 (11 Off -Sale and 43 On -Sale) and 1 on -sale licensee at Sonoma State University. An alarming 28% (34) of these businesses have, within the past 20 months, received violations for selling alcohol to minors. Exhibit A Problem Statement: Even though the legal drinking age in California is 21, access to alcohol is fairly easy for youth in Sonoma County. Under the 2006 -2007 GAP Grant, nineteen Shoulder Tap and fifteen Minor Decoy Operations were conducted over a twelve month.period within the Cities of Rohnert Park and Cotati. As a result of those operations 36 Shoulder Tap and 19 Minor Decoy arrests were made. 18% of the licensed establishments sold alcohol to our decoys. 90% of the establishments that sold to our, 16 -19 year old, decoys didn't ask to see identification bearing the decoy's age. The remaining 10% asked for identification and still sold alcohol to the minor even though their legal California Driver's License clearly indicated they are underage. To help measure the effectiveness of the 2006 -2007 GAP Grant campaign, the City of Rohnert Park funded a five team Task Force Operation in December of 2007; exactly six months after the expiration of the GAP Grant. In only a five hour period, 24 arrests were made. 13 of 5.1 licensees visited sold alcohol to our decoys. Additionally, eight Shoulder Tap arrests, two Driving Under the Influence and one other alcohol related.arrests were also made. This enforcement operation clearly indicated that despite our efforts, during the 2006 -2007 ABC GAP Grant campaign, youth access to alcohol still exists. A 2005 report released by the California Healthy Kids Survey, sponsored by the California Department of Education, indicated that 50% of all Sonoma County 11a, grade students stated they could "very easily" obtain alcohol. Informal surveys of high school age students of Rohnert Park showed they obtain alcohol by asking someone who has a fake ID or is at least 21 years of age to buy for them. Many of the students said, it was common knowledge, that some minors focused their attention on obtaining alcohol in Downtown. Petaluma and/ or through transients in the Petaluma area while Rohnert Park increased monthly sting operations the past two years; however, minors have returned to Rohnert Park as Petaluma Police have stepped up their enforcement through a 2007 -2008 ABC GAP Grant. During recent Responsible Beverage Service (RBS) trainings, merchants identified concerns over the use of fake identifications and their inability to clearly identify fraudulent driver licenses and identification cards. As a preventive measure, officers will take a proactive approach to reducing the use of fraudulent identifications through training during IMPACT inspections and enforcement operations and by conducting Trapdoor and Cops in $hops Operations. Downtown Cotati contains a high concentration of on and off -sale licensees (total of 17) within a two block area. This area is frequented by Sonoma State University Students as there is a high concentration of bars and nightclubs within a two block area. It's long been known as the " Cotati Crawl," because patrons can bar -hop very easily and are able to consume large amounts of alcohol as it is harder for bartenders to track consumption. Many of the students are under age and toting false identification. Other merchants in the downtown area complain about property damage and rowdy crowds that occur Thursday through Saturday night as a result of the large crowds Downtown Cotati attracts. Rohnert Park has similar problems as a result of three bars/ nightclubs that host large gatherings (hip hop night, etc,) from Thursday through Saturday night. Other alcohol related problems that exist in Rohnert Park and within the Cotati Downtown Corridor include, but are not limited to, public intoxication, driving under the influence, minors in possession of alcohol, serving obviously intoxicated patrons, disturbing the peace, vandalism,. littering, loitering, assault and battery, and sexual assaults. The 2006 -2007 Joint Agency GAP Grant proved to be an invaluable tool for enforcement of the above listed alcohol related crimes. Nineteen 7 -hour operations were sporadically placed throughout the twelve month Grant period. As a result of the cooperative effort over 95 alcohol related arrests were made (5 arrests each 7 hour operation). The statistics identified that minors, through persistence, can gain access to alcohol in the Cities of Rohnert Park and Cotati. Although obtaining alcohol through the "Shoulder Tap" method showed a slight decrease, Minor Decoy Operations showed an alarming 23.5% increase. This increase followed extensive media coverage of ABC Decoy enforcement that was in effect. A problem still exists with minors gaining access to alcohol in both cities and fiuther enforcement action will be vital to control future availability. Unfortunately, law enforcement agencies throughout the State of California are understaffed, therefore currently, rely heavily on Grant subsidized programs that allot overtime hours for special enforcement activities. When implemented correctly these programs have proven to be effective. Project Descriptions Project Goals: 1. To reduce the number of alcohol - related calls for service in the Cities of Rohnert Park and Cotati. 2. Increase the number of minor in possession of alcohol arrests. 3. Reduce youth access to alcohol through preventive measures by keeping merchants informed and enforcement. Project Objectives: 1. To purchase Digital Recorder Devices by July 31, 2008. 2. To produce and distribute educational materials, as a reference guide for merchants, related to identified alcohol- related issues and checking validity of identification by September 30, 2008. 3. To conduct a press conference or complete press release by July 31, 2008 to "kick off' and publicize the project. 4. Identify and target problematic ABC licensed establishments by July 31, 2008. 5. Develop and implement a multi - agency task force concept involving ABC, Rohnert Park Department of Public Safety, Cotati Police Department, and Sonoma State University by July. 31, 2008. . 6. Develop and implement an ongoing procedure for training new and existing officers on ABC enforcement and an enforcement plan by July' 31, 2008. 7. Provide briefing training on alcohol - related issues for all sworn personnel once a quarter, by September 30, 2008, December 31, 2008, March 31, t. , Exhibit. A 2009 and June 30, 2009. 8. Evaluate the existing system of processing incident reports involving licensees to the local ABC office and implement an improved system of forwarding incident reports, in a timely manner, to ABC by July 31, 2008. 9. To conduct a total of 18 Minor Decoy and Shoulder Tap Operations by June 30, 2009.. 10. To conduct 8 Cops in Shops and TrapDoor Operations by June 30, 2009. 11. To conduct 2 Task Force Operations targeting ABC licensed premises. . 12. To conduct Teenage Party Enforcement (Party Patrol) Operations, as needed, during above listed operations by June 30, 2009. 13. Coordinate and conduct 3 IMPACT (Informed Merchants Preventing Alcohol- Related Crime Tendencies) Operations by June 30, 2009. This will supplement current inspections being conducted as a result of a new ordinance which regulates compliance in the City of Rohnert Park. 14. Continue Responsible Beverage Service (RBS) training, as mandated by a new city ordinance, for all licensed merchants and their employees in the Cities of Rohnert Park and Cotati. 15. Issue periodic press releases regarding grant activity or enforcement operations. FAX or e-mail copies of press releases to ABC Project Coordinator. 16. Invite media sources to ride with officers during enforcement activities. Project Personnel: Under past grants, the Rohnert Park Department of Public Safety has successfully assembled a team of interested officers to conduct ABC Operations on an overtime basis. This team consists of motivated officers whose main focus is to reduce alcohol related crime. Only 15% of all sworn personnel serve on this team as there is an expectation to produce results during enforcement operations. Each operation is rein by one of seven officers (5 sergeants/ 2 officers) who have attended past ABC GAP Grant tramings and have extensive experience in conducting ABC related operations. This supervision ensures operations are conducted according to ABC guidelines. The supervising officer will be joined by two additional officers to makeup a three person team. IMPACT Inspections will be conducted by one officer. Task Force Operations will consist of four, three officer, teams. The three agencies worked well together under a generous 2006 -2007 ABC GAP Grant. A strong working relationship was also established with investigators from the Santa Rosa ABC Office. Due to the effectiveness of such a partnership we chose to seek another joint grant for 2008 -2009 to help combat a major alcohol related problem that still exists in our communities. As a representative of the three agency cooperative effort, I (Sgt. Mike Bates) will oversee and participate in the operational aspect of the ABC GAP Grant. I look forward to continuing a . proven and invaluable relationship with The Dent of Alcoholic Beverage Control to combat underage and irresponsible drinking and public nuisance issues related to alcohol consumption. Exhibit l BUDGET ESTIMATE BUDGET CATEGORY AND LINE4TEM DETAIL COST (Round budget amounts A. Personnel Services (salaries, overtime, and benefits) to nearest dollar) s each agency pays officers at different rates an average overtime rate was used to mpute the listed figure. For the purposes of this grant an average rate of $65.00 as used. The following budget projection is based on 31 operations: Eighteen, 8 our, shoulder tap and minor decoy operations consisting of one sergeant and two Lffc ers ($28,080). Eight, 8 hour, Cops in Shops and TrapDoor Operations, isting of two officers ($8,320). Two, 8 hour, Task Force Operations, consisting ur sergeants, eight officers, and two dispatchers ($14,560). Three, 8 hour, ACT inspection operations consisting of one officer ($1,560). TOTAL PERSONNEL SERVICES $52,520.00 B. Operating Expenses (maximum $2,500) Buy money, if needed, for above stated operations: $800.00 TOTAL OPERATING EXPENSES $800.00 C. Equipment (maximum $2,500) Two digital recorders for decoys to carry on their person during stated operations: $200.00 Recorders will be used to capture incriminating dialogue between decoy and suspect. TOTAL EQUIPMENT $200,.00 D. Travel Expense/Registration Fees (maximum $3,500) Registration for July 2008 GAP Conference: 3 Attendees at $200 each Registration for January 2009 Conference:. 3 Attendees at $200 each ne representative from each agency for each Conference ($1200), plus travel penses. Due to variables in travel related costs an exact amount is unknown at this me; therefore, the maximum amount is requested to cover potential travel related osts. Actual expenses will be requested for reimbursement up to allotted amount. TOTAL TRAVEL EXPENSE $3500.00 TOTAL BUDGET ESTIMATE, ALL CATEGORIES $57,020.00 GTC 307 EXHIBIT C GENERAL TERMS AND CONDITIONS 1. APPROVAL: This Agreement is of no force or effect until signed by both parties and approved by the Department of General Services, if required. Contractor may not commence performance until such approval has been obtained. 2. AMENDMENT: 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. 3. ASSIGNMENT: 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. 4. AUDIT: Contractor agrees that the awarding department, the Department of General Services, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. Contractor agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated. Contractor agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, Contractor agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub. Contract Code § 10115 et seq., CCR Title 2, Section. 1896). 5. INDEMNIFICATION: 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. 6. DISPUTES: Contractor shall continue with the responsibilities under this Agreement during any dispute. 7. TERMINATION FOR CAUSE: 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. 8. INDEPENDENT CONTRACTOR: 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. 9. RECYCLING CERTIFICATION: The Contractor 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 the State 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). 10. 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 (Gov. Code § 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. 11. CERTIFICATION CLAUSES: The CONTRACTOR CERTIFICATION CLAUSES contained in the document CCC 307 are hereby incorporated by reference and made a part of this Agreement by this reference as if attached hereto. 12. TIMELINESS: Time is of the essence in this Agreement. 13. COMPENSATION: 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. 14. GOVERNING LAW: This contract is governed by and shall be interpreted in accordance with the laws of the State of California. 15. ANTITRUST CLAIMS: The Contractor by signing this agreement hereby certifies that if these services or goods are obtained by means of a competitive bid, the Contractor shall comply with the requirements of the Government Codes Sections set out below. a. The Government Code Chapter on Antitrust claims contains the following definitions: 1). "Public purchase" means a purchase by means of competitive bids of goods, services, or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code. 2). "Public purchasing body" means the State or the subdivision or agency making a public purchase. Government Code Section 4550. b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. Government Code Section 4552. c. If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code Section 4553. d. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and (a) the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action. See Government Code Section 4554. 16. CHILD SUPPORT COMPLIANCE ACT: "For any Agreement in excess of $100,000, the contractor acknowledges in accordance with Public Contract Code 7110, that: a). 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 b) 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." 17. UNENFORCEABLE PROVISION: In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby. 18. PRIORITY HIRING CONSIDERATIONS: If this 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 Welfare and Institutions Code Section 11200 in accordance with Pub. Contract Code § 10353. SAADMIN\ OMEPAGE \GTC- 307.doc Exhibit D Payment Provisions 1. INVOICING AND PAYMENT: Payments of approved reimbursable costs (per Budget Estimate attached) shall be in arrears and made via the State Controller's Office. Invoices shall be submitted in duplicate on a monthly basis in a format specified by the State. Failure to submit invoices and reports in the required format shall relieve the State from obligation of payment. Payments will be in arrears, within 30 days of Department acceptance of Contractor performance, pursuant to this agreement or receipt of an undisputed invoice, whichever occurs last. Nothing contained herein shall prohibit advance payments as authorized by Item 2100 -101- 3036, Budget Act Statutes of 2008. 2. Revisions to the "Project Narrative" and the "Budget Estimate" may be requested by a change request letter submitted by the Contractor. If approved by the State, the revised Grant Assistance Program Narrative and /or Budget Estimate supersede and replace the previous documents bearing those names. A contract amendment will be required to implement any such changes with the exception that changes in a budget line item of expense not to exceed five percent (5 %) of the line item may be authorized without requiring a contract amendment if the total amount of the contract remains unchanged. 3. Contractor agrees to refund to the State any amounts claimed for reimbursement and paid to Contractor which are later disallowed by the State after audit or inspection of records maintained by the Contractor. 4. Only the costs displayed in the "Budget Estimate" are authorized for reimbursement by the State to Contractor under this agreement. Any other costs incurred by Contractor in the performance of this agreement are the sole responsibility of Contractor. 5. Title shall be reserved to the State for any State - furnished or State - financed property authorized by the State which is not fully consumed in the performance of this agreement. Contractor is responsible for the care, maintenance, repair, and protection of any such property. Inventory records shall be maintained by Contractor and submitted to the State upon request. All such property shall be returned to the State upon the expiration of this contract unless the State otherwise directs. 6. If travel is a reimbursable item, the reimbursement for necessary traveling expenses and per diem shall be at rates set in accordance with Department of Personnel Administration rates set for comparable classes of State employees. No travel outside of the State of California shall be authorized. No travel shall be authorized outside of the legal jurisdiction of Contractor without prior authorization by the State. Exhibit D 7. Prior authorization by the State in writing is required before Contractor will be reimbursed for any purchase order or subcontract exceeding $2,500 for any articles, supplies, equipment, or services to be purchased by Contractor and claimed for reimbursement. Contractor must justify the necessity for the purchase and the reasonableness of the price or cost by submitting three competitive quotations or justifying the absence of bidding. 8. Prior approval by the State in writing is required for the location, costs, dates, agenda, instructors, instructional materials, and attendees at any reimbursable training seminar, workshop or conference, and over any reimbursable publicity or educational materials to be made available for distribution. Contractor is required to acknowledge the support of the State whenever publicizing the work under the contract in any media. 9. It is understood between the parties that this contract may have been written before ascertaining the availability of appropriation of funds, for the mutual benefit of both parties, in order to avoid program and fiscal delays that would occur if the contracts were executed after that determination was made. 10. BUDGET CONTINGENCY CLAUSE - It is mutually agreed that if the Budget Act of the current year and /or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to Contractor or to furnish any other considerations under this Agreement and Contractor shall not be obligated to perform any provisions of this Agreement. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an agreement amendment to Contractor to reflect the reduced amount. Exhibit E Special Terms and Conditions 1. Disputes: Any dispute concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Director, Department of Alcoholic Beverage Control, or designee, who shall reduce his decision to writing and mail or otherwise furnish a copy thereof to the Contractor. The decision of the Department shall be final and conclusive unless, within 30 days from the date of receipt of such copy, the Contractor mails or otherwise furnishes to the State a written appeal addressed to the Director, Department of Alcoholic Beverage Control. The decision of the Director of Alcoholic Beverage Control or his duly authorized representative for the determination of such appeals shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, capricious, arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this clause, the contractor shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, Contractor shall proceed diligently with the performance of the contract and in accordance with the decision of the State. 2. 'Termination Without Cause: Either party may terminate this agreement at any time for any reason upon ten (10) days written notice. No penalty shall accrue to either party because of contract termination. 3. Contract Validity: This contract is valid and enforceable only if approved by the Office of Legal Services, State Department of General Services, if required, and if adequate funds are appropriated in Item 2100- 101 -3036, Budget Act of 2008, for the purposes of this program. 4. Contractor Certifications: By signing this agreement, Contractor certifies compliance with the provisions of CCC 307, Standard Contractor Certification Clauses. This document may be viewed at: www.dgs.ca.gov /contracts. 5. If the State determines that the grant project is not achieving its goals and objectives on schedule, funding may be reduced by the State to reflect this lower level of project activity.