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HomeMy WebLinkAboutPD05-360 - Original - WA Dept. of Social & Health Services - Community Partnership to Reduce Underage Drinking - 07/01/2005 %eZcords MIjeem e 4 KENT Document c WASHIMGTC■ CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to City Clerks Office. All portions are to be completed,if you have questions, please contact City Clerks Office. WA Department os social & Health Services Vendor Name' Division of Alcohol & Substance Abugendor Number. 61087 JD Edwards Number Contract Number DASA Contract # 8974-0 ��( 3(0 0 This is assigned by Deputy City Clerk Description: Community Partnershin to reduce underage drinking in Kent. Detail: Two year grant @ $60,000. LCS-Kent received an additional $15,000 for liquor enforcement in Kent. Project Name: RUaD - Reduce Underaae Drinkina Contract Effective Date: 7/l/05 Termination Date: 5/31/07 Contract Renewal Notice (Days): 30 calendar days' written notice Number of days required notice for termination or renewal or amendment Contract Manager: Nancy Mathews Department: Police Y Abstract: Education, awareness and compliance strategies to reduce underage drinking in Kent, to include: 10 compliance checks, 'explore ordinances to strengthen U-21 alcohol laws, youth conference, 10 vouth-led activities, UAD training for youth and police officers, maintain a youth board, attend required State and National conferences. S:Pubic%RecordsManaganmAFcros%ContractCover\ADCL7832 07/02 o � m D � Oy 't 1889� STATE OF WASHINGTON DEPARTMENT OF SOCIAL AND HEALTH SERVICES Division of Alcohol and Substance Abuse PO Box 45330,Olympia WA 98504 (360) 725-3700 July 7, 2005 Chief Ed Crawford City of Kent 220 4"'Avenue South Kent, Washington 98032-5895 DASA Contract#8974-0 Dear Contractor: Enclosed is a fully executed copy of the Interlocal Agreement between you and the Division of Alcohol and Substance Abuse. If you have questions, please call your Contract Manager. Sincerely, gml� Eric Crawford, Contracts Program Manager Division of Alcohol and Substance Abuse Contracts Section Post Office Box 45330 Olympia, Washington 98504-5330 (360) 725-3717 EC:bmh Enclosure '°�" 10 RECEIVED INTERLOCAL AGREEMENT DSHS AGREEMEJUN 2 9 2005 Reducing Undo"O -Drinking (RUaD)Services 0561-76466 DASA/OFS "is Agreement is by and between the State of Washington Department of Program-Agreement Number Social and Health Services DSHS and the Contractor identified below, and is issued pursuant to the Interlocal Cooperation Act, chapter 39.34 8974-0 p i� p Contractor-Agreement Number RCW. CONTRACTOR NAME CONTRACTOR DBA City of Kent Kent Drinking Driver Task Force CONTRACTOR ADDRESS CONTRACTOR UNIFORM BUSINESS CONTRACTOR DSHS INDEX IDENTIFIER(UBI)NUMBER NUMBER 220 4th Ave South 22475 Kent, WA 98032-5895 CONTRACTOR CONTACT CONTRACTOR CONTACT CONTRACTOR FAX CONTRACTOR E-MAIL ADDRESS TELEPHONE Chief Ed Crawford 253 856-5882 Ext: 253 856-6802 nmathews ci kent.wa.us DSHS ADMINISTRATION DSHS D MISION DSHS CONTRACT CODE Health and Rehabilitative Division of Alcohol and Substance Abuse 4000LC Services Administration DSHS CONTACT NAME AND TITLE DSHS CONTACT ADDRESS Michael Langer PO Box 45330 Supervisor, Prevention/Tx Services Olympia, WA 98504-5330 DSHS CONTACT TELEPHONE DSHS CONTACT FAX DSHS CONTACT E-MAIL ADDRESS 360 725-3740 (360)438.8057 langeme@dshs wa.gov is THE CONTRACTOR A SUBRE T FOR PURPOSES OF THIS AGREEMENT? CFDA NUMBERS Yes 16.727 AGREEMENT START DATE A6REENIENTEND DATE MAXIMUM AGREEMENT AMOUNT 07,/01/2005 0513ILM 1 $60,000.00 EXHIBITS. The following Exhibits are attach6d and incorporated into this Agreement by reference: Exhibit(s)(specify): Statement of Work, Exhibit A; Budget, Exhibit B; Standards for Reimbursable Costs, Exhibit C No Exhibits . The terms and conditions of this Agreement are an integration and representation of the final,entire and exclusive understanding between the parties superseding and merging all previous agreements,writings, and communications,oral or otherwise regarding the subject utter of this Agreement, between the parties. The parties signing below represent they have read and understand this Agreement,and have the authority to execute this Agreement. This Agreement shall be binding,,on DSHS only ture by DSHS. CONTRACTC,ASI%4ATURE PRINTED NAME AND TITLE DATE SIGNED 1.44 - '0X— D SSM-NATUR9 PRINTED NAME AND TITLE NED DAX Sheryl Turner, Contracts Administrator 4qIQ5 Division of Alcohol and Substance Abuse DSHS Central Contract Services Pagel #W15LF Interlocal Agreement(01-1045) r ,a - a 4. SPECIAL T-,ERMS AND CONDITIONS 1. Definitions a. "Agreement" means this Intedocat Agreement, including ail Exhibits and other documents attached or incorporated by reference. b. "Contracts Administrator" means the manager, or successor, of Central Contract Services or successor section or office. c. "Contractor" means the entity performing services pursuant to this Interlocal Agreement and includes the Contractor's officers, directors, trustees, employees and/or agents. For purposes of any permitted Subcontract, "Contractor" includes any Subcontractor and its owners, members, officers, directors, partners, employees, and/or agents. For purposes of this Interlocal Agreement, the Contractor shall not be considered an employee or agent of DSHS. d. "Debarment" means an action taken by a Federal official to exclude a person or business entity from participating in transactions involving certain federal funds. e. "DSHS"or"the Department" means the state of Washington Department of Social and Health Services and its employees and authorized agents. f. "Personal Information" means information identifiable to any person, including, but not limited to, information that relates to a person's name, health, finances, education, business, use or receipt of govemmsntal services or other activities, addresses, telephone numbers, social security numbers, driver license numbers,other identifying numbers, and any financial Identifiers. g. "RCW" means the Revised Code of Washington. All references in this Agreement to RCW chapters or sections shall include any successor, amended, or replacement statute. Pertinent RCW chapters can be accessed at http//slc.lpg.wa.gov/. h. "Regulation" means any federal, state, or local regulation, rule, or ordinance. i. "Subcontract" means any separate agreement or contract between the Contractor and an individual or entity ("Subcontractor")to perform all or a portion of the duties and obligations that the Contractor is obligated to perform pursuant to this Agreement. j. "Subrecipienr means a non-federal entity that expends federal awards received from a pass- through entity to carry out a federal program, but does not include an individual that is a beneficiary of such a program. A subrecipient may also be a recipient of other federal awards directly from a federal awarding agency. k. "WAC" means the Washington Administrative Code. All references in this Agreement to WAC chapters or sections shall include any successor, amended, or replacement regulation. Pertinent WAC chapters or sections can be accessed at htto://sic.leg.wa.aov/. 2. Statement of Work. The Contractor shall provide the services and staff, and otherwise do all things necessary for or incidental to the performance of work, as set forth in the attached Statement of Work, Exhibit A. DSHS Central Contract Services Page 2 #W15t.F dnterlocal Agreement(Q1.4fl•D5) AW 3. Billing and Payment. DSHS shall pay the Contractor an amount not to exceed the maximum consideration specified on page 1 of this Agreement for the satisfactory performance of all worts set forth in the Statement of Work. ,,.. The Contractor shall bill for services under this contract on an invoice voucher in the manner prescribed r yy by DSHS. DSHS shall provide a pre-coded voucher for use by the Contractor after the date of execution of this contract. DSHS shall pay to the Contractor all reimbursable costs insofar as those reimbursable costs do not exceed that amount appropriated or otherwise available for such purposes, in accordance with the budget, attached hereto and incorporated herein as Exhibit "B". Standards for Reimbursable Costs are defined in Exhibit"C". The total maximum consideration for this contract is $60,000. The source of funds is the Federal Office of Juvenile Justice and Delinquency Prevention (OJJDP) Discretionary Grant #2005-AH-FX-0029. The Catalog of Federal Domestic Assistance (CFDA) number is 16.727. DSHS shall pay the Contractor upon acceptance by DSHS of properly completed invoices or vouchers and approval by the DASA contract manager. Changes not to exceed a cumulative 10 percent may be made by the contractor in each expenditure line item of the contract budget without a contract amendment, provided that the Contractor shall notify DSHS Division of Alcohol and Substance Abuse (DASA) of the changes by letter within 10 days. All other changes irk excess of a cumulative 10 percent in each expenditure line item must receive prior DSHS/DASA approvat by amendment to the contract budget. Indirect costs cannot be modified without a bilateral amend. Claims for payment submitted by the Contractor to DSHS for costs due and payable under this agreement that were incurred prior to the expiration date shall be paid by DSHS if received by DSHS within 120 days after the expiration date. If this Interlocal Agreement is terminated, DSHS shall only pay for performance rendered or costs incurred in accordance with the terms of this Interlocal Agreement prior to the effective date of termination. 4. Background Checks. In accordance with RCW 43.20A.710, RCW 43.43.832, RCW 74.34, and RCW 71A.10.020, all Contractor staff, subcontractors or volunteers who have unsupervised access to children or vulnerable adults are required to have a background check, and all persons convicted of crimes listed in RCW 43.43.830 and RCW 43.43.842 are prohibited from having access to clients. 5. Insurance. For purposes of this Agreement: a. DSHS certifies that it is self-insured under the State's self-insurance liability program, as provided by RCW 4.92.130,and shall pay for losses for which it is found liable. b. The Contractor certifies, by checking the appropriate box below, initialing to the left of the box s ed, and signing this Agreement, that: B The Contractor is self-insured or insured through a risk pool and shall pay for losses for which it is found liable; or DSHS Central Contract Servioea Page 3 #60t6LF Interlocal Agreement(01.10.06) [ The Contractor trains the types and amounts of insurance identified below and shall, prior to the execution of this Agreement by DSHS, provide certificates of insurance to that effect to the DSHS contact on page one of this Agreement. ■ Commercial General Li�i (rn tc� CGL)—to inckde coverage for bodily injury, property damage, and contractuat tiahiiity,with the following minimum limits: Each Occurrence - $1,000,000; General Aggregate-$2,000,000. The policy shall include liability arising out of premises, operations, independent contractors, products-completed operations, personal injury, advertising injury, and liability assumed under an insured contract. The State of Washington, DSHS, its elected and appointed officials, agents, and employees shall be named as additional insureds. DSHS Central Contract Services Page 4 #180MF Interlocal Agreement(01-10-0) GENERAL TERMS AND CONDITIONS 1. Amendment. This Agreement may only be modified by a written amendment signed by both parties. Only personnel authorized to bktd-4acl�of the parties may sign an amendment. 2. Assignment. The Contractor shall not assign this Agreement, its rights or obligations hereunder, without obtaining the prior written consent of DSHS. DSHS shall not recognize any assignment without such prior written consent. In the event that consent is given and this Agreement is assigned, all terms and conditions of this Agreement shall be binding upon the Contractor's successors and assigns 3. Compliance with Applicable Law. At all times during the term of this Agreement, the Contractor shall comply with all applicable federal, state, and local laws and regulations, including but not limited to, nondiscrimination laws and regulations. d. Confidentiality. The Contractor may use Personal Information and other information gained by reason of this Agreement only for the purpose of this Agreement. The Contractor shall not disclose, transfer, or sell any such information to any party, except as provided by law or, in the case of Personal Information, without the prior written consent of the person to whom the Personal Information pertains. The Contractor shall maintain the confidentiality of all Personal Information and other information gained by reason of this Agreement, and shall return or certify the destruction of such information If requested in writing by DSHS. 5. Debarment Certification. The Contractor, by signature to this contract certifies that the Contractor is not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in this Agreement or any Program Agreement by any Federal department or agency. The Contractor also agrees to include the above requirement into any subcontracts entered into, resulting directly from the Contractor's duty to provide services under this Contract. 6. Disputes. Disputes shall be determined by a Dispute Board. Each party to this Agreement shall appoint one member to the Dispute Board. The members so appointed shall jointly appoint an additional member to the Dispute Board. The Dispute Board shall review the facts, Agreement terms, and applicable statutes and rules and make a determination of the dispute. As an alternative to this process, either party may request intervention by the Governor, as provided by RCW 43.17.330, in which event the Governor's process shall control. Participation in either dispute process shall precede any judicial or quasiqudicial action and shall be the final administrative remedy available to the parties. 7. Governing Law and Venue. The laws of the state of Washington shall govern this Agreement. In the event of any action brought hereunder, venue shall be proper only in Thurston County, Washington. 8. Hold Harmless. a. The Contractor shall be responsible for and shall hold DSHS harmless from all claims, loss, liability, damages, or fines arising out of or relating to the Contractor's, or any Subcontractor's, performance or failure to perform this Agreement, or the acts or omissions of the Contractor or any Subcontractor. DSHS shall be responsible for and shall hold the Contractor harmless from all claims, loss, liability, damages, or fines arising out of or relating to DSHS' performance or failure to perform this Agreement. b. The Contractor waives its immunity under Title 51 RCW to the extent it is required to indemnify, defend, and hold harmless the State and its agencies, officials, employees.agents, or 9 9 9. Maintenance of Records. During the term of this Agreement and for six (6)years following DSHS Central Contract Services Page 5 #W15LF Interlocal Agreement(01-10.06) _ h termination or expiration of this Agreement, the Contractor shall maintain, and provide DSHS with reasonable access to, its records sufficient to: a. Document performance of all acts required by law, regulation, or this Agreement; b. Substantiate the Contractor's statement of its organization's structure, tax status, capabilities, and performance; and c. Demonstrate accounting procedures, practices, and records which sufficiently and properly document the Contractor's invoices to DSHS and all expenditures made by the Contractor to perform as required by this Agreement. It. Order of Precedence. In the event of an inconsistency in this Agreement, the inconsistency shall be resolved by giving precedence in the following order: a. Applicable federal and state of Washington statutes and regulations; b. Special Terms and Conditions contained in this Agreement; c. General Terms and Conditions contained in this Agreement; d. Exhibits or other documents incorporated by reference. 11. Ownership of Material. Material created by the Contractor and paid for by DSHS as a part of this Interlocal Agreement shall be owned by DSHS and shall be "works for hire" as defined by the U.S. Copyright Act of 1976. This material includes, but is not limited to: books; computer programs; documents; films; pamphlets; reports; sound reproductions; studies; surveys; tapes; and/or training materials. Material which the Contractor uses to perform this Interlocal Agreement but which is not created for or paid for by DSHS is owned by the Contractor; however, DSHS shall have a perpetual license to use this material for DSHS internal purposes at no charge to DSHS. 12. Severability. If any term or condition of this Agreement is held invalid by any court, such invalidity shall not affect the validity of the otherterms or conditions of this Agreement. 13. Subcontracting. Except as otherwise provided in this Agreement, the Contractor shall not subcontract any of the contracted services without the prior approval of DSHS as specified in a written amendment to this Agreement. Contractor is responsible to ensure that all terms, conditions, assurances and certifications set forth in this Agreement are included in any and all Subcontracts. Any failure of Contractor or its Subcontractors to perform the obligations of this Agreement shall not discharge the Contractor from its obligations hereunder or diminish DSHS' rights or remedies available under this Agreement. 14. Subreciplents. a. General. If the Contractor is a subrecipient of federal awards as defined by Office of Management and Budget(OMB) Circular A-133 and this Agreement, the Contractor shall: (1) Maintain records that Identify, in its accounts, all federal awards received and expended and the federal programs under which they were received, by Catalog of Federal Domestic Assistance (CFDA)title and number, award number and year, name of the federal agency, and name of the pass-through entity; (2) Maintain internal controls that provide reasonable assurance that the Contractor is managing federal awards in compliance with laws, regulations, and provisions of contracts or grant agreements that could have a material effect on each of its federal programs; DSHS Central Contract Serviose Page 6 #6015LF Interlocal Agreement(01-10.06) (3) Prepare appropriate financial s ements, including a schedule of expenditures of federal awards; (4) Incorporate OMB Circular I#-133 audit requirements Wo all agreements between the Contractor and its Subcontractors who-.sae subrecipients; (5) Comply with any future amendments to OMB Circular A-133 and any successor or replacement Circular or regulation; (6) Comply with the applicable requirements of OMB Circular A-87 and any future amendments to OMB Circular A-87, and any successor or replacement Circular or regulation; and (7) Comply with the Omnibus Crime Control and Safe streets Act of 1968, Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Title II of the Americans with Disabilities Act of 1990, Title IX of the Education Amendments of 1972, The Age Discrimination Act of 1975, and The Department of Justice Non-Discrimination Regulations, 28 C.F.R. Part 42, Subparts C.D.E. and G, and 28 C.F.R. Part 35 and 39. (Go to www.ojp.usdoo/gov/ocr for additional information and access to the aforementioned Federal laws and regulations.) b. Single Audit Act Compliance. If the Contractor is a subrecipient and expends $500,000 or more in federal awards from any and/or all sources in any fiscal year,the Contractor shall procure and pay for a single audit or a program-specific audit for that fiscal year. Upon completion of each audit, the Contractor shall: (1) Submit to the DSHS contact person the data collection form and reporting package specified in OMB Circular A-133, reports required by the program-specific audit guide (if applicable), and a copy of any management letters issued by the auditor; (2) Follow-up and develop corrective action for all audit findings; in accordance with OMB Circular A-133, prepare a "Summary Schedule of Prior Audit Findings." c. Overpayments. If it is determined by DSHS, or during the course of a required audit, that the Contractor has been paid unallowSbie costs under this or any Program Agreement, DSHS may require the Contractor to reimburse DSHS in accordance with OMB Circular A-87. 15. Termination. a. Change in Funding. If the funds DSHS relied upon to establish this Interocal Agreement are withdrawn, reduced or limited, or if additional or modified conditions are placed on such funding, DSHS may immediately terminate this Interlocal Agreement by providing written notice to the Contractor. The termination shall be effective on the date specified in the notice of termination. b. Default. If for any cause, either party fails to fulfill its obligations under this Agreement in a timely and proper manner, or if either party violates any of the terms and conditions contained in this Agreement, then the aggrieved party will give the other party written notice of such failure or violation. The responsible party will be given 15 working days to correct the violation or failure. If the failure or violation is not corrected, this Agreement may be terminated immediately by written notice from the aggrieved party to the other party. c. Convenience. Either party may terminate this lnterlocal Agreement for any other reason by providing 30 calendar days' written notice to the other party. d. Payment for Performance. If this Interlocal Agreement is terminated for any reason, DSHS shall only pay for performance rendered or costs incurred in accordance with the terms of this Agreement and prior to the effective date of termination. 16. Treatment of Client Property, unless otherwise provided, the Contractor shall ensure that any adult DSHS Central Contract Services Page 7 #6015LF Interlocai Agreement(01-10-06) • client receiving services from the Contractor has unrestricted access to the client's personal property. The Contractor shall not interfere with any adult client's ownership, possession, or use of the client's property. The Contractor shall proWde clients under age atghteert (18)with reasonable access to their personal property that is appropriate to the client's age, development, and needs. Upon termination of the Contract,the Contractor shall immediately release to the client and/or the client's guardian or custodian all of the client's personal property. 17. Waiver. Waiver of any breach or default on any occasion shall not be deemed to be a waiver of any subsequent breach or default. Any waiver shall not be construed to be a modification of the terms and conditions of this Agreement unless amended as set forth in Section 1, Amendment, of the General Terms and Conditions. Only the Contracts Administrator or designee has the authority to waive any term or condition of this Agreement on behalf of DSHS. APPROVED AS TO FORM BY THE OFFICE OF THE ATTORNEY GENERAL DSHS Central Contract Service Page g #0015LF interlocal Agreement(01-1"5) t r Exhibit A inent of Work I City of Kent Police Department Reducing Underage Drinking (RUaD) 7M/05—5/31/07 The Contractor shall: a. Conduct a minimum of ten, 8-hourslcohol compliance check activities. b. Ensure that 100% of liquor law violators found during compliance check activities are issued a Liquor Control-Board citation. c. Notify all liquor licensees,within the City of Kent, of the schedule for merchant alcohol training offered through the Liquor Control Board. d. Explore changes to strengthen city ordinances related to the sale of alcohol to minors. e. Educate a minimum of 200 youth on alcohol prevention,and local advocacy. f. Provide a minimum of ten local school-based, youth-led RUaD activities. g. Provide, at least, one Underage Drinking Prevention training to each shift of the Kent Police Department per year. h. Provide training on the Washington State graduated licensing program to 14-18 year olds. i. Maintain a youth board of at least 15 members. j. Provide, at least,one Youth Leadership training to youth board members per year. k. Provide representation from, at least, two people at the Washington State Prevention Summit in October 2005 and October 2006. I. Provide representation from, at least,two people at the Office of Juvenile Justice and Delinquency Prevention, annual National Leadership Conference. Reporting: a. Progress Reports Progress reports are to be completed and submitted to the Statewide Coordinator, using a form to be provided upon execution of this contract, and in accordance with the following schedule. Quarto Reporting Period Report Due Date r 1 7/1/05- 12/31/05 1/15/06 2 1/1/06-6/30/06 7/15106 3 7/1 M§- 12131/06 1/15/07 4 1/1/07-5131/07 6115/07 b. Compliance Check Reporting A RUaD Comp//ance Check Act/vity Report Form must be completed for each business visited during scheduled RUaD compliance check activities. Completed forms are to be mailed to the Statewide Coordinator within 2 weeks of the compliance check operation. Reimbursement for compliance check activities will not be processed until forms are received for that operation. DSHS Central Contract Services Page 9 X6015LF Interlocal Agreement(0140 05) Exhibit B Budget City of Kent Police Department Reducing Underage Drinking (RUaD) 7/1/05—5/31/07 Statement of Work $60,000 Sub-contracts $0 Administration $0 Total $60 000 Note 1:There is no match requirement for thK Contract. Note 2: DASA will contract with the Washington State Liquor Control Board (LCB) in the amount of $15,000 to be spent on RUaD activities by the LCB. Expenditure of those funds will be at the direction of the City of Kent PD. DSHS Central Contract Services Page 10 MOI5LF Interlocal Agreement(01.40o e Exhibit"C" STANDARQSFOR REIMBURSABLE COSTS The following Standards for Reimbursable Costs represents a compilation of definitions and principles from the State of Washington Offer of Financial Management's State Administrative and Accounting Manual (SAAM), the federal Office of Management and Budget's Circular A-122 Cost Principles for Non-Profit Organizations, and Circular A-87 Cost Principles for State, Local, and Indian Tribal Governments. DEFINITIONS The following terms and phrases shall have the meanings indicated when used in this exhibit, except where the context clearly requires otherwise. (1) "Acquisition cost" shall mean the net cost of equipment, including the costs for modifications, attachments, accessories, or auxiliary apparatus necessary to make the equipment useable for the purpose for which it was acquired. (2) "Arm's length transaction" shall mean a transaction resulting from good faith bargaining between a 4 buyer and a seller,where the parties have adverse positions in the marketplace. (3) "Contractor or subcontractor property"shall mean property used in performance of a contract which is not departmental property. (4) "Cost" shall mean the historical amount of money involved in a transaction which decreases an asset or increases a liability,whether recognized on a cash or accrual basis. Cost shall not include repayments of borrowing, expenditures to acquire assets, distributions to owners, and corrections to prior periods. Corrections to prior periods are included as costs in that prior period. (5) "Cost related or cost reimbursement" shall mean a contract or subcontract where the amount of payment being made is related to the actual costs of the subcontractor or a class of subcontractors to perform the contract, subject to ceilings, allowances, limitations and conditions adopted by the Department,but without regard to the method of payment. (6) "Cost related subeontractot"shall mean a subcontractor that has a cost related subcontract. (7) "Customary charge" shall mean the average charge for a similar service, activity or procedure for non-departmental clients or purchasers by providers whose training and experience is similar to the contractor or subcontractor and are located in the same area. The area considered in determining customary charge shall be as large as necessary to provide a reasonable measure of the market for such services, activities or procedures. (8) "Department"shall mean the Department of Social and Health Services. (9) "Departmental clients"shall mean individuals who receive or benefit from services or activities for which the contractor was reimbursed in part or entirely by the Department. (10) "Departmental funds" shall mean any funds paid by the Department to a contractor, including funds passed through to subcontractors without regards to the source of those funds. Departmental funds include federal funds which pass through the Department. (11) "Departmental property" shall mean property owned by the Department, and property for which title Is vested in the Department. DSHS Central Contract semoes Page 11 #6015LF Interlocal Agreement(01.10-06) f f F . r b (12) "Equipment" means an article of nontw pendable tangy personal property having a useful life of more than one year and a acaquisition cost of $5,000 or more per unit. Items not meeting this definition shall not be VAuNdled as equipment. Purchase of equipment must be approved in advance by the contractmarvaW. (13) "Fee for Service" shall mean a contract or subcontract where the amount of reimbursement is a negotiated fixed rate of pay based on performance of defined unit of service such as per treatment, per hour or per session. (14) "Personal property" shall mean property of any kind except real property, either tangible or intangible. (15) "Price related " shall mean a contract or subcontract where the amount of reimbursement is related to market prices for services, and without consideration of the contractor's or subcontractor's actual or anticipated costs. (16) "Real property" shall mean land, land improvements, structures, and appurtenances thereto, but excluding movable machinery and equipment. (17) "Subcontract" shall mean any agreement for compensation between the contractor and a subcontractor, or between a subcontractor and another subcontractor, to provide property, services or constnrction needed in performance of the contract. (18) "Subcontractor" shall mean any person, partnership, corporation, association or organization, not in the employment of the contractor,who has a subcontract agreement directly with the contractor or a subsequent tier subcontract agreement with an intermediate subcontractor. (19) "Supplies"shall mean tangible personal property other than equipment. (20) "Third party"Shall mean an individual or organization other than the Department,the contractor,any subcontractor or any departmental client. (21) "Usual charge" shall mean the charge which the contractor or subcontractor most frequently charges ruin-departmental clients or purchasers for a similar service, activity or procedure. (22) "Working capital" shall mean a fund balance accumulated and maintained for a period of more than twelve months,or remaining at the termination or expiration of a contract,which is not segregated in a reserve account and is used primarily to maintain the entity's cash flow. REIMBURSABLE COSTS (1) Reimbursable costs shall include costs which are necessary for the proper and efficient performance of the contract,are reasonable and allocable to the contract and are allowable under the provisions of this exhibit. (2) Reimbursable costs include costs incurred in paying subcontractors for fulfilling or assisting the contractor to fulfill the contractor's obligations to the Department. (a) if the subcontract is price related, the reimbursable cost of the subcontract shall be the share of payments to the subcontractor which equals the usual charge or the customary charge, whichever is less. If the subcontractor has only departmental clients, the reimbursable cost shall be the share of payments to the subcontractor which equal the customary charge. DSHS Central Contract services Page 12 r)W15LF Interlocal Agreement(01-10.05) (b) if the subcontract is cost tad, the reimbursable cost of the subcontract shall be the share of payments to the subcorr for subcontractor costs which are necessary for the proper and efficient performance of the contract, are reasonable and allocable to the subcontract and are allowable under the provisions of this exhibit. If the cost-related subcontractor is a for-profit entity, reimbursable cow-may also include payments for ordinary profit, provided such profit is computed on a basis other than a percentage of contract costs. Costs used to determine subcontract payments may be either actual costs during the contract period or estimated costs for the contract period based on actual costs in a prior period, and may be either costs of the subcontractor or costs of a class or subclass of facilities providing similar services, activities or procedures. (c) if the subcontract is fee for service, the reimbursable cost of the subcontract shall be the share of the payments based on an established rate structure set by laws, regulation or policy, or may be based on cost information provided by the contractor during a competitive solicitation or contract negotiations. REASONABLENESS (1) A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent and reasonable person under circumstances prevailing at the time the decision was made to incur the cost. (2) In determining the reasonableness of a given cost, the following shall be given careful consideration: (a) Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the contractor or the performance of the contract. (b) Whether the cost was incurred after the contractor complied with sound business practices, including arm's length bargaining. (c) Whether the contractor acted with prudence in the circumstances considering its responsibilities to the organization, its members, employees, clients, the public at large, and the Department. (d) Whether the contractor deviated from established practices of the contractor, which may unjustifiably increase the cosL ALLOCABLE COST,$ (1) A cost is allocable to the contract if all of the following conditions are met: (a) It is assignable or chargeable to the contract in accordance with the relative benefit received because either: (i) It was incurred specifically and solely for the performance of the contract; or (ii) It benefits both contract and non-contract objectives and can be distributed between them in reasonable proportion to the benefits received; or (iii) It is necessary for the overall operation of the contractor even if a direct relationship to the contract cannot be shown. (b) It is riot allocable to or included as a cost of any other contract, grant, agreement or program DSHS Central Contract Services Page 13 #6015LF Interlocal Agreement(01-10-051 f � in either the presenfor any prior period,or used as cost-sharing or matching for another contract or grerO, except when the contract specifically authorizes such duplicate allocation. (c) It is accorded conslstent treatment with costs of a similar nature. (2) Contract-Specific Direct Costs: If a cost is allocable to the contract pursuant to subsection (1)(a)(i) of this section, the entire amount may be charged to the contract. pursuant to subsection I a ii of this (3) Shared Direct Costs: If a cost is allocable to the contract O( )( ) section, the charge shall be considered to be in reasonable proportion to the benefits received if the charge is based on time distribution records, random moment time samples, equivalent work units, or space utilization. Other equitable methods may be used with the prior approval of the Department. Allocation of charges based on revenue distribution is not an acceptable method. (4) Indirect Costs: If a cost is allocable to the contract pursuant to subsection (1)(a)(iii)of this section, the charge shall be considered to be in proportion to benefits received if it is based on the total distribution of costs allocated pursuant to subsections(2)and (3)of this section, or if it is based on staff time directly spent in contract and non-contract activities. Other equitable methods may be used with the prior,written approval of the Department. (5) Contractors and cost-related subcontractors shall maintain a current cost allocation plan describing how costs are allocated. (6) Department approvals required in subsections (3) and (4) of this section shall be obtained by submitting a cost allocation plan to the contract manager. The cost allocation plan shall identify the period of time covered by the plan, the cost items to be allocated, the allocation method, the program areas to which costs are allocated, and the resulting allocations using budgeted costs. Copies of indirect cost allocation plans submitted for federal grant purposes may be used to apply for Department approval under subsection(4)of this section. ALLOWABLE COSTS A cost is allowable if: (1) It is authorized or not prohibited by federal,state, or local laws and regulations. (2) It conforms to any limitations or exclusions set forth in the contract terms and approved budget, or in applicable state or federal law or regulation. (3) It is approved in advance and in writing by the Department, if it is a cost requiring approval. (4) It is not an unallowable cost. (5) It is consistent with poticles,regulations,directives,and procedures of the contractor. (6) It is accorded consistent treatment through application of generally accepted accounting principles. (7) It is adequately documented in source records such as payroll registers and invoices. (8) It is the net of all applicable credits,such as purchase discounts, rebates, and allowances. DSHS Central Contract Services Page 14 #W15LF Interlocal Agreement(01.10.05) COSTS ALLOWABLE WITH PRIQ3jt%a .QY& Costs described in this section. 4aFowable only if they are approved in advance by the Department. Approval shall be deemed givees If,the cost is specifically identified in the contract budget or other clause or attachment to the contract. Approval of costs not specifically identified in the contract shall be made by letter or other document which sets forth the nature and amount of the approved cost and the contract for which it is allowed. (1) Client cash payments: Any direct cash payments to departmental clients are allowable only with prior written approval of the Department. (2) Capital expenditures: Cost of acquiring by purchase or capitalized lease land, buildings, or equipment and cost of repair, remodeling, renovation, or improvements which would materially increase the value or useful life of buildings are allowable only with the prior written approval of the Department. (3) Training and education: Cost of training which requires staff to be relieved of regular duties for more than tees working days per training event is allowable only upon prior written approval of the Department. (4) Purchase of equipment must be approved in advance by the contract manager. Title to equipment Shall vest in the Department of Social and Health Services unless otherwise determined by the contract manager at the time of purchase. INTEREST EXPENSE (1) Interest on borrowed funds is boated differently depending on the source of funds reimbursing the cost. (a) Cow incurred for interest on borrowed capital or temporary use of endowment funds, however represented,arg unalkwvable as reimbursable costs against a federal grant. (b) Interest on borrowed funds is allowable against state funding if the interest expense meets the applicable requirements of this section. (2) Interest on borrowed funds used to purchase equipment or real property is allowable against state funding with the prior written approval of the Department. (3) Interest on borrowed funds used to create, replenish, or maintain working capital is allowable against state funding, if the following conditions are met: (a) Working capital is deplete due to unusual cash flow, such as abnormally high costs or delays in reimbursement', or working capital has been insufficient for an extended period of time, because the contractor or subcontractor has insufficient eligible income in excess of expenses to accumulate adequate working capital. (b) The borrowed funds are not used to supplant funds which otherwise would be available to finance working capital. Borrowed funds shall be considered to supplant contractor working f capital if a decision to deplete working capital is evident, whether the working capital is depleted before or after the arrangements to borrow funds are made. (c) The working capital in aggregate does not exceed ninety days cash flow. DSHS Central Contract Services Page 15 #6015LP Interbcal Agreement(01-10-05) r . e (d) The interest expense is approved in advance&W in writing by the Department. (4) Approval shall be deemed givers N the interest cost is specifically identified in the contract budget or other clause or attad rn6rft to the contract. Approvat of interest cost not specifically identified in the contract shall be rraade by Getter or other document which sets forth the nature and amount of the approved cost and the oot&pd under which it is allowed. UNALLOWABLE COSTS The following costs are unallowable, whether incurred directly by the contractor or any cost related subcontractor: (1) Bad debts: Any losses arising from uncollectible accounts and other claims and related costs are unallowable. In double entry accounting systems, write-offs of client fees deemed uncollectible shaft be treated as adjustments to revenue. (2) Chief executive: The salaries and expenses of the chief executive of a political subdivision are unallowable. (3) Contingencies: Contributions,to a contingency reserve or any similar provision for unforeseen events. (4) Contributions and donations: Costs of a contractor or subcontractor in the form of contributions and donations to other organizations, including costs of donated services and property, are unallowable. (5) Depreciation of state financed property: Costs of depreciation of departmental property are unallowable. (6) Entertainment: Costs of amusements, social activities, and incidental costs relating thereto such as meals, beverages, lodgtirg, rentals, transportation, and gratuities are unallowable, except for costs of entertainment, Ny for departmental clients and necessary expenses of staff who supervise departmental olkwAs can contractor or subcontractor sponsored activities. (7) Fines and penalties: Costs rek4fing from violations of or failure to comply with federal, state, and local laws and regulations are unallowable. (8) First class air accommodations: The difference in cost between first class air accommodations and less-than-first class air accommodations is unallowable, except when less-than-first class air accommodations are not reasonably available. (9) Fund raising: Costs of organized fund raising are unallowable. (10) Legal fees to bring suit against federal or state government: The cost of legal expenses for the prosecution or defense of claims by or against the federal or state government is unallowable. (11) Legislative expenses: The salaries and other expenses of county councilmen or councilwomen, supervisors, commissioners,etc.,whether incurred for the purposes of the legislation or executive direction, are unallowable. (12) Lobbying expenses: The cost of attempting to influence legislation pending before any federal or state legislative body is unallowable except as provided for in RCW 42.17.190. DSMS Central Contract Services Page 16 #6015LF Interlocal Agreement(01.16-96) i y • r • (13) Losses: Costs of actual lasses which could have been covered either by insurance or by contributions to a self4risuprice reserve are unallowable,except for losses not covered under nominal deductible insuranee coverage and minor losses not covered by insurance which occur in the ordinary course of op �,such as spoilage and breakage. (14) Memberships: Costs of memberships for individuals in civic, business, technical or professional organizations are unallowable. Costs of contractor or subcontractor memberships in any organization whose predominate activity is influencing legislation are unallowable. (15) Under-recovery of costs in other contract agreements: Any costs incurred in excess of the federal and state contribution under any other contract agreement is unallowable. UNALLOWABLE C05TS• FEDERAL ALCOHOL DRUG ABUSE AND MENTAL HEALTH SERVICES BLOCK GRANT (1) Unless an explicit and specific federal waiver is obtained, the following costs are unallowable under any contract which includes federal alcohol, drug abuse and mental health services block grant funds: (a) Costs of hospital inpatient services; (b) Cash payments to departmental clients; (c) Cost of purchase or permanent improvement of land or facilities, other than minor remodeling; (d) Cost of purchase of major medical equipment,with an acquisition cost in excess of$5,000; (a) Costs used as cost-sharing or matching for other federal funds requiring nonfederal matching funds; (f) Costs of financial assistance to any entity which is not either public or nonprofit; or (g) Costs that in effect supplant or otherwise reduce the amount of state or local funds that would have been used for alcoholism, drug abuse or mental health programs in the absence of federal block grant funding. For the purposes of this section, supplantation shall be deemed to occur if the amount of state or local funds used is less than the amount expended during federal fiscal year ending September 30, 1981. (h) Carry out any program of distributing sterile needles for the hypodermic injection of any illegal drug or distributing bleach for the purpose of cleansing needles for such hypodermic injection. (i) Carry out any testing for the etiologic agent for acquired immune deficiency syndrome (AIDS), unless such testing is accompanied by appropriate pre-test counseling and appropriate post-test counseling. (j) EXCESS SALARY: The salary of an individual at a rate in excess of $120,000 per year pursuant to Section 213 of P.L. 101.517. (k) Youth tobacco enforcement. DSHS Central Contract services Page 17 #6015LF Interlocal Agreement(01-1D-05) r (2) The use of federal funds b.fokmcce or attempt to ttknince the award of, or amendment to, any federal contract,grant,loan,or cooperative agreement is prohibited. (a) The use of funds other than federal funds for such purposes shall require the contractor to submit all required federal and state forms disclosing such lobbying activity. (b) The contractor must include this language in any contracts resulting from this agreement and that all subrecipients understand and agree to these terms. (3) Costs that are unallowable under subsection (1) of this section are allowable using state funds if all of the following conditions are met: (a) The contract includes state funds at least equal to the total amount of all items of cost under consideration; (b) If the costs are incurred by a subcontractor,the subcontract document clearly indicates only state funds are included in the subcontract;and (c) The cost is otherwise allowed. DSHS Central Contract Services Page 18 { #8015LF Intedocal Agreement(01-1045) 1