County of Los Angeles
CHIEF EXECUTIVE OFFICE
Kenneth Hahn Hall of Administration
500 West Temple Street, Room 713, Los Angeles, California 90012
(213) 974-1101
http://ceo.lacounty.gov

WILLIAM T FUJIOKA

Board of Supervisors
GLORIA MOLINA
First District

Chief Executive Officer

MARK RIDLEY-THOMAS
Second District

ZEV YAROSLAVSKY

August 14,2012

Third District
DON KNABE
Fourth District

The Honorable Board of Supervisors
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, CA 90012

MICHAEL D. ANTONOVICH
Fifth District

Dear Supervisors:
SHERIFF'S DEPARTMENT:
JAIL WORK PLAN
APPROVE COMMUNITY CORRECTIONAL FACILITY SERVICES AGREEMENT
WITH CITY OF TAFT
(ALL DISTRICTS) (3 VOTES)
SUBJECT

Approval of this action will authorize a Community Correctional Facility Services
Agreement with the City of Taft to house County inmates within the Taft Community
Correctional Facility, which is a component of the Jail Work Plan that offers housing
relief for County jail facilities.
JOINT RECOMMENDATION WITH THE SHERIFF THAT THE BOARD:

1. Approve and delegate authority to the Chief Executive Officer to execute the
Community Correctional Facility Services Agreement with the City of Taft,
commencing upon execution by both parties and terminating on July 31,2017, to
house a minimum of 512 County inmates with long-term sentences within the
Taft Community Correctional Facility managed and operated by the City of Taft,
with a Maximum Contract Sum for the entire term of the Agreement not to
exceed $75,000,000.

'To Enrich Lives Through Effective And Caring Service"
Please Conserve Paper - This Document and Copies are Two-Sided
Intra-County Correspondence Sent Electronically Only

The Honorable Board of Supervisors
August 14, 2012
Page 2

2. Delegate authority to the Sheriff to execute amendments to the Community
Correctional Facility Services Agreement to: 1) modify business processes,
operational requirements, or other services, which do not increase the facility
per-diem rate and/or the Maximum Annual Contract Sum; and 2) decrease the
facility per-diem rate for which the same services are provided.
PURPOSE AND JUSTIFICATION OF RECOMMENDED ACTION

Approval of the recommended action will authorize a Community Correctional Facility
Services Agreement (Agreement) with the City of Taft (Taft) to house County inmates
within the Taft Community Correctional Facility, which is a component of the Jail Work
Plan that offers housing relief for County jail facilities.
Background
Effective October 1, 2011, the Public Safety Realignment Act of 2011 (AB 109)
transferred responsibility for the custody, parole supervision, treatment/support
services, and revocation of individuals whose last conviction was a non-serious,
non-violent, and non-sex offense (N3) from the State to the counties.
On June 6, 2012, the Chief Executive Officer and the Sheriff presented a Jail Work Plan
to review and evaluate inmate management programs and to ensure future capital
plans for the County's jail facilities to appropriately accommodate projected inmate
classifications, including the addition of inmates sentenced under AB 109. Currently,
the Sheriff's custody system has an operating capacity of approximately 21,000 jail
beds, which are occupied by a population mix of pre-trial, post-conviction/pre-sentence,
and, to a very limited degree, short-term (less than 12 months) sentenced inmates.
With the passage of AB 109, inmates convicted of a N3 will now serve their sentences
within the County's jail system instead of being transferred to State prisons. Based on
projections using monthly inmate intake and release data, approximately 7,000 N3
inmates will be housed in our jails by Spring 2014. This will represent a significant
population shift toward sentenced N3 inmates whose jail term is determined by the
courts and without a maximum cap. N3 sentences have ranged from an average
24 months to as lengthy as 42 years. Without custody alternatives, our jail system will
soon exceed its capacity.
The Jail Work Plan included exploring various alternative custody models that could
potentially offer housing relief for County jail facilities. Upon the conclusion of initial
research, it was determined the use of Community Correctional Facilities (CCFs) was a
viable option to provide housing for the N3 inmates with the longest sentences. The

The Honorable Board of Supervisors
August 14, 2012
Page 3

Sheriff's Department has since entered into discussions with several cities that operate
CCFs.
The Sheriff's Department has completed negotiations with Taft to transfer County N3
inmates to their CCF. The Board's approval of the recommended agreement with Taft
will provide housing relief for 512 jail beds at a cost that IS significantly less than
housing within the County's system.
Taft Community Correctional Facility

.

Taft is located in Kern County, just southwest of Bakersfield. It is approximately
80 miles from the Pitchess Detention Center in Castaic. The Taft facility is a CCF
created pursuant to California Penal Code Section 6250 et seq., which originally housed
inmates committed to the California Department of Corrections and Rehabilitation
(CDCR). The Taft CCF was officially closed in 2011 due to CDCR's termination of its
lease for inmate housing.
The Taft CCF is a Type III Adult Detention Facility (operated specifically for convicted
and sentenced adults) that provides dormitory style housing for approximately 512male
inmates. Each dorm consists of approximately 64 beds, showers/restrooms, and large
open day rooms.
The Taft CCF has agreed to adopt the Sheriff's philosophy on Education Based
Incarceration (EBI) and will ensure all programs fit this model. Taft will provide General
Education Degree (GED) classes, vocational programs, religious services, and life-skills
classes pursuant to the Agreement.
Agreement Terms and Conditions
The term of this Agreement commences upon execution by both parties and expires on
July 31, 2017. The Agreement may be terminated by either party with a 90 days
advance written notice.
Under this Agreement, the Sheriff's Department shall transport N3 inmates who have
been convicted and sentenced to long-terms under AB 109 Guidelines to the CCF. Taft
will then assume custody and control of the N3 inmates for the full term of their
sentence until they are transferred back to the County system. Taft will provide
housing, sustenance, education, inmate programs, and other services such as routine
medical and dental care. Taft CCF will only house County inmates during the term of
the Agreement. Additionally, Taft CCF has agreed to notify the Sheriff's Department of
any inmate's increase in medical care needs, including emergent care. Inmates will be

The Honorable Board of Supervisors
August 14, 2012
Page 4

transferred back to the County prior to release.
from the Taft CCF.

No inmates will be released directly

IMPLEMENTATION OF STRATEGIC PLAN GOALS
This action meets the County's Strategic Plan Goals of Operational Effectiveness
(Goal 1) and Fiscal Sustainability (Goal 2) by creating more available beds to house the
additional N3 inmate population outside of the County's jail system.

FISCAL IMPACT I FINANCING
During Fiscal Year 2012-2013, the State will be providing counties with funding to
support AB 109 programs for the custody, supervision, and rehabilitation of the
realigned populations. The Sheriff's Department will utilize its local allocation of the
AB 109 funds to support the Agreement with Taft. Should State funding be reduced, the
Sheriff will re-evaluate all AB 109 programs, including this Agreement with Taft. The
following factors, among others, will be considered before terminating this Agreement:
•
•

The total jail population and bed space needed at the time of reduction.
Whether the reduction occurs prior to or after fully funding the Unemployment
Insurance Reserve, described below.

The following table provides a jail bed cost comparison between the CCF and County
for 512 inmates:

Start-up daily bed rate
Daily bed rate
Daily operating cost
Annual operating cost
Five-year operating cost
Maximum Contract amount

Taft CCF
$61.00 (260 beds)
$60.55 (512 beds)
$31,000
$11,315,000
$56,575,000
$75,000,000

County Jail
NA
$112.84 (512 beds)
$57,800
$21,097,000
$105,485,000

Start-up Cost & Period
The County will pay Taft a one-time payment for startup costs in the amount of
$475,800 upon execution of the Agreement. During the first two months of the
Agreement or until a mutually agreed upon point in time, Taft will provide an initial 260
beds in exchange for a flat facility per-diem rate of $15,860 per day (calculated at
$61.00 per inmate).
.

The Honorable Board of Supervisors
August 14, 2012
Page 5

Full-Capacity Operating Cost
Once the CCF is fully operational, the cost will be adjusted and the County will be
charged a flat facility per-diem rate of $31,000 per day (calculated at $60.55 per inmate)
for all 512 jail beds. Comparatively, the County's Auditor-Controller has set the cost of
a County inmate to be housed within the County's jail system at $112.84 per day.
Should the CCF's operational capacity fall below 512 beds, due to maintenance,
emergency or other reason, the County will continue to be charged the daily bed rate of
$60.55 for each remaining inmate in the CCF.
In the event of an inmate requiring immediate non-routine, specialized, or emergent
medical care, Taft will transport the inmate to the emergency room/hospital and provide
security at an hourly rate of $49.13. The actual costs of the inmate's emergency
room/hospital medical services will be billed directly to the Sheriff's Department, as is
current protocol with local hospitals, and is a cost separate and apart from this
Agreement. These emergency room/hospital costs are anticipated to be comparable to
those of inmates requiring hospitalization within the County's system.
The CCF's operating cost and any transportation and security cost provided during a
medical emergency/hospitalization, shall not exceed the Maximum Annual Contract
Sum of $15,000,000 and the Maximum Contract Sum shall not exceed $75,000,000.
Built-in Costs: Unemployment Reserve and State Debt Service Payments
The daily facility per-diem rate of $31,000 contains two built-in costs that, upon
fulfillment, will provide the County with the opportunity to reduce ongoing costs. These
built-in costs pertain to unemployment insurance and State debt service payments.
Unemployment Reserve

A portion of the County's cost includes a monthly contribution that will be deposited into
an Unemployment Insurance Reserve (UI Reserve) for Taft CCF employees. The
purpose of this reserve is to fund unemployment insurance payments to CCF
employees in the unlikely event the County terminates the Agreement (as occurred
unexpectedly with the State last year). The County's contribution to the UI Reserve
shall cease after the first 36 months; whereupon, it will be considered fully funded at
$1,002,000 and the facility per-diem rate shall be reduced downward accordingly. Taft
shall provide an annual accounting of each year-end balance of the UI Reserve.

The Honorable Board of Supervisors
August 14, 2012
Page 6

Taft may only access the UI Reserve unless the Agreement is terminated and for the
sole purpose of making unemployment insurance payments to terminated CCF
employees. In the event the County terminates the Agreement:
•

Within the first 36 months of the Agreement, then County has an obligation to
fully fund the UI reserve.

•

After the initial 36 months and Taft enters into a separate agreement with a
successor agency for use of the CCF within 24 months following the County's
termination; Taft shall refund the County for any unexpended amounts on deposit
in .the UI Reserve at the time such successor agreement is executed.

In the event Taft is responsible for terminating the Agreement for convenience, then the
County will be refunded all contributions within the UI Reserve.
State Debt Service Payments
The State of California issued lease revenue bonds in 1997 for the Taft Community
Correctional Facility Acquisition Project (CCF Bonds). Under the conditions set forth in
the bond issue, Taft is liable for debt service payments. The CCF Bonds will be paid in
full in 2017. These debt service payments were built into the inmate housing lease with
COCR. Since COCR's lease termination in 2011, this payment obligation has been met
by the State; however, should the State cease payment, the debt service obligation will
fall solely on Taft.
Taft shall make a "good-faith" effort, and take all reasonable actions, to pursue
reimbursement from the State of California for damages and liabilities incurred by Taft
due to the State's termination of its lease of the Taft CCF.
The facility per-diem rate includes an amount equal to the annual debt service payment
due on the CCF Bonds. At the point in time that the CCF Bonds are paid in full or
otherwise no longer the responsibility of Taft, then the facility per-diem rate shall be
reduced downward accordingly.
FACTS AND PROVISIONS/LEGAL REQUIREMENTS

California Penal Code Section 4115.55 authorizes the Board of Supervisors to enter into
a contract with other public agencies to provide housing for inmates sentenced to
County jail in CCFs created pursuant the California Penal Code section 6250 et seq. As
originally chaptered, California Penal Code Section 4115.55 had a sunset date and was

The Honorable Board of Supervisors
August 14, 2012
Page 7

to remain in effect only until January 1, 2015; however, on June 27, 2012, California
Penal Code Section 4115.55 was amended, which removed the sunset date.
The Agreement contains the County standard provisions. However, it does contain the
following exceptions:
1. Since Taft is located in Kern County, the Safely Surrendered Baby Law provision
has been omitted;
2. Taft will comply with its own jury service program;
3. The Agreement provides for mutual indemnification by the parties; and
4. Taft is self-insured and will meet its insurance obligations under the Agreement
through its membership in the Central San Joaquin Valley Risk Management
Authority, a Joint Powers Authority.
The attached Agreement has been reviewed by Chief Executive Office, Office of Risk
Management and approved as to form by County Counsel.
IMPACT ON CURRENT SERVICES (OR PROJECTS)

The CCF will expand the County's jail system to accommodate the population increase
attributable to sentenced N3s. There will be no negative impact on current County
services as a result of this Agreement.

The Honorable Board of Supervisors
August 14, 2012
Page 8

CONCLUSION
Please return one adopted copy of this Board letter to the Chief Executive Office, Public
Safety Budget and Capital Projects/Debt Management; and the Sheriff's Department,
Administrative Services Division.
Sincerely,

\}~1LWILLIAM T FUJIOKA
Chief Executive Officer
Attachment
WTF:LDB:RLR
DJT:DKM:TJ:cvb
c: Executive Office, Board of Supervisors
County Counsel

U:\BOARD LETTERS 2012\BCapital Projets, Propty Dvlp, Asset Ping, Disability RghtsIJaii Work Plan Taft CCF Agreement 081412.docx

AGREEMENT
BY AND BETWEEN
COUNTY OF LOS ANGELES
AND
CITY OF TAFT
FOR
COMMUNITY CORRECTIONAL FACILITY SERVICES

TABLE OF CONTENTS

PARAGRAPH

TITLE

PAGE

RECITALS ..................................................................................................................... 1
1.0
APPLICABLE DOCUMENTS ............................................................................... 1

2.0

DEFINITIONS ....................................................................................................... 2

3.0

WORK ................................................................................................................ 5

4.0

TERM OF AGREEMENT ...................................................................................... 5

5.0

CONTRACT SUM AND RATES ........................................................................... 6

6.0

ADMINISTRATION OF CONTRACT- COUNTY ................................................ 13

7.0

ADMINISTRATION OF CONTRACT - CONTRACTOR ..................................... 14

8.0

STANDARD TERMS AND CONDITIONS .......................................................... 15

8.1

AMENDMENTS ....................................................................................... 15

8.2

ASSIGNMENT AND DELEGATION ......................................................... 15

8.3

AUTHORIZATION WARRANTY .............................................................. 16

8.4

BACKGROUND AND SECURITY INVESTIGATIONS .......... .......... ......... 16

8.5

BUDGET REDUCTIONS ......................................................................... 17

8.6

COMPLAINTS ......................................................................................... 18

8.7

COMPLIANCE WITH APPLICABLE LAW .................................. ............. 18

8.8

COMPLIANCE WITH CIVIL RIGHTS LAWS ........................................... 19

8.9

COMPLIANCE WITH THE COUNTY'S JURY SERVICE PROGRAM ..... 19

8.10

CONFIDENTIALITy ................................................................................. 19

8.11

CONFLICT OF INTEREST ...................................................................... 20

8.12

CONTRACTOR RESPONSIBILITY AND DEBARMENT ......................... 21

8.13

CONTRACTOR'S WARRANTY OF ADHERENCE TO COUNTY'S
CHILD SUPPORT COMPLIANCE PROGRAM ............................ ...... ...... 23

8.14

COUNTY'S QUALITY ASSURANCE PLAN ............................................. 24

8.15

EMPLOYMENT ELIGIBILITY VERIFICATION ......................................... 24

8.16

FACSIMILE REPRESENTATIONS .......................................................... 24

8.17

FAIR LABOR STANDARDS .................................................................... 25

8.18

FORCE MAJEURE .................................................................................. 25

8.19

GOVERNING LAW, JURISDICTION, AND VENUE ................................ 26

8.20

INDEPENDENT CONTRACTOR STATUS ....................... :...................... 26

8.21

INDEMNIFICATION ................................................................................. 26

8.22

GENERAL PROVISIONS FOR ALL INSURANCE COVERAGE ............. 27

TABLE OF CONTENTS
PARAGRAPH

TITLE

PAGE

8.23

INSURANCE COVERAGE ...................................................................... 31

8.24

LIQUIDATED DAMAGES .............. ..... ................. .. .............. .... ................ 33

8.25

NONDISCRIMINATION AND AFFIRMATIVE ACTION .. ... ...... ................. 34

8.26

NON EXCLUSiViTy ............................................... ................. ................. 35

8.27

NOTICE OF DELAYS ........................................................... ... ................ 35

8.28

NOTICE OF DiSPUTES .. ................. ................... ................. ................... 35

8.29

NOTICE TO EMPLOYEES REGARDING THE FEDERAL EARNED
INCOME CREDIT ....... ... .. ........................................................................ 36

8.30

NOTICES ... ................ .... ................. .................. ... ................... ................. 36

8.31

PROHIBITION AGAINST INDUCEMENT OR PERSUASION ........ .. .. .... . 36

8.32

PUBLIC RECORDS ACT ......................................................................... 36

8.33

RECORD RETENTION AND INSPECTION/AUDIT SETTLEMENT ........ 37

8.34

RECYCLED BOND PAPER. .. ........... ........... ........ .. ................. ............. .. .. 38

8.35

SUBCONTRACTING ........................ ................. ... ............ .... .... ............... 38

8.36

TERMINATION FOR BREACH OF WARRANTY TO MAINTAIN
COMPLIANCE WITH COUNTY'S CHILD SUPPORT
COMPLIANCE PROGRAM ..... ........ ... .. ... .. .... ....... .... .... .. ........ .. ........ .. ...... 39

8.37

TERMINATION FOR CONVENIENCE ................ .................................... 39

8.38

TERMINATION FOR DEFAULT .............................................................. 40

8.39

TERMINATION FOR IMPROPER CONSIDERATION ............ .. .. ............. 41

8.40

TERMINATION FOR INSOLVENCy ... .................. .. ............... ... ... ............ 41

8.41

TERMINATION FOR NON-ADHERENCE OF COUNTY LOBBYIST
ORDINANCE ............. ... .................. ....................................... .. ................ 42

8.42

VALIDITy ... .. ....... ................ ............ ....... .... ................. ... .. ............ ...... .. .... 42

8.43

WAiVER ..................... ..................... ........................................ ................ . 42

8.44

WARRANTY AGAINST CONTINGENT FEES ..... ... ............. ... ................. 42

8.45

WARRANTY OF COMPLIANCE WITH COUNTY'S DEFAULTED
PROPERTY TAX REDUCTION PROGRAM .... ... ..... ...... ...... .............. .... . 43

8.46

TERMINATION FOR BREACH OF WARRANTY TO MAINTAIN
COMPLIANCE WITH COUNTY'S DEFAULTED PROPERTY TAX
REDUCTION PROGRAM .................................................... .... ...... .......... 43

8.47

CONTRACTOR'S OBLIGATIONS AS A "BUSINESS ASSOCIATE"
UNDER THE HEALTH INSURANCE PORTABILITY AND
ACCOUNTABILITY ACT of 1996 AND THE HEALTH INFORMATION
TECHNOLOGY FOR ECONOMIC AND CLINICAL HEALTH ACT ......... 43

TABLE OF CONTENTS

PARAGRAPH
8.48

TITLE

PAGE

PATENT, COPYRIGHT, AND TRADE SECRET INDEMNIFiCATION ..... 44

SIGNATURES ............................................. .................................. ... ... ......................... 45

EXHIBITS

A

STATEMENT OF WORK

B

PRICE SCHEDULE

C

MINIMUM STAFFING PLAN

D

CONTRACTOR'S OBLIGATIONS AS A "BUSINESS ASSOCIATE" UNDER THE
HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT OF 1996
(HIPAA) AND THE HEALTH INFORMATION TECHNOLOGY FOR ECONOMIC
AND CLINICAL HEALTH ACT (HITECH)

AGREEMENT
FOR
COMMUNITY CORRECTIONAL FACILITY SERVICES
This Agreement for Community Correctional Facility Services ("Agreement") is made and
entered into this
day of
, 2012, by and between the County of
Los Angeles ("County") and the City of Taft ("Contractor"), effective upon execution by
both parties.
RECITALS

WHEREAS, as a result of the Public Safety Realignment of 2011, the County seeks
housing, sustenance, supervision, education, inmate programs, and other services and
accommodations for certain inmates sentenced to County jail in community correctional
facilities created pursuant to California Penal Code section 6250 et seq.; and
WHEREAS, Contractor is a public agency which operates a community correctional
facility and provides related services to inmates; and
WHEREAS, the Taft Community Correctional Facility ("CCF") is located at 330
Commerce Way, Taft, California; and
WHEREAS, Contractor previously provided the CCF and related services to selected
inmates under the jurisdiction of the Director of the California Department of Corrections;
and
WHEREAS, this Agreement is authorized pursuant to California Penal Code section
4115.55.
NOW THEREFORE, in consideration of the mutual covenants contained herein, and for
good and valuable consideration, the parties hereby agree as follows:

1.0

APPLICABLE DOCUMENTS
1.1

AGREEMENT

This base document, along with Exhibits A through 0, attached hereto, and
any fully executed Amendment from time to time hereto or thereto
collectively constitute and throughout and hereinafter are referred to as the
"Agreement." This Agreement shall constitute the complete and exclusive
statement of understanding between County and Contractor and
supersedes any and all prior or contemporaneous agreements, written or
oral, and all communications between the parties relating to the subject
matter of this Agreement.
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County of Los Angeles
Sheriffs Department

CCF Services Agreement

1.2

INTERPRETATION
In the event of any conflict or inconsistency in the definition or interpretation
of any word, responsibility, schedule, or the contents or description of any
task, subtask, deliverable, goods, service, or other Work, or otherwise, such
conflict or inconsistency shall be resolved by giving precedence first to this
base document, and then to the Exhibits, according to the following priority:
1.2.1 EXHIBIT A - Statement of Work
1.2.2 EXHIBIT B - Price Schedule
1.2.3 EXHIBIT C - Minimum Staffing Plan
1.2.4 EXHIBIT D - Contractor's Obligations as a "Business Associate"
Under the Health Insurance Portability AND
Accountability Act of 1996 (HIPAA) and the Health
Information Technology for Economic and Clinical
Health Act (HITECH)

1.3

CONSTRUCTION
The words "herein", "hereof', and "hereunder" and words of similar import
used in this Agreement refer to this Agreement, including all annexes,
attachments, Exhibits, and schedules as the context may require.
Wherever from the context it appears appropriate, each term stated in either
the singular or plural shall include the singular and the plural. Whenever
examples are used in this Agreement with the words "including", "for
example", "e.g.", "such as", "etc.", or any derivation of such words, such
examples are intended to be illustrative and not limiting. Captions and
Paragraph headings used in the Agreement are for reference and
convenience only and are not a part of the Agreement and shall not be
used in construing the Agreement. References in this Agreement to
Federal, State and/or other governmental statutes, codes, rules,
regulations, ordinances, guidelines, directives and/or policies, including
those copies of which are attached to this Agreement, shall mean and shall
be to such statutes, codes, rules, regulations, ordinances, guidelines,
directives and/or policies as amended from time to time.

2.0

DEFINITIONS
The following capitalized words and terms as used herein shall be construed to
have the following meaning, unless otherwise apparent from the context in which
they are used.
2.1

"Amendment" has the meaning set forth in Paragraph 8.1, Amendments,
of this Agreement.

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County of Los Angeles
Sheriffs Department

CCF Services Agreement

2.2

"Board" means the Los Angeles County Board of Supervisors.

2.3

"Business Day" means Monday through
observed holidays.

2.4

"CCF" means the Taft Community Correctional Facility, which is located at
330 Commerce Way, Taft, California 93268.

2.5

"Contractor Project Director" has the meaning set forth in Paragraph 4.1,
Contractor Project Director, of this Agreement.

2.6

"Contractor Project Manager" has the meaning set forth in Paragraph 4.2,
Contractor Project Manager, of this Agreement.

2.7

"Contractor" has the meaning set forth in the preamble.

2.8

"Correctional Officer" means any individual employed by Contractor
pursuant to California Penal Code section 830.55 and who was hired and
has received training in accordance with California Penal Code section
832 and/or 6035, as applicable.

2.9

"County" has the meaning set forth in the preamble.

2.10

"County Project Director" has the meaning set forth in Paragraph 3.1,
County Project Director, of this Agreement.

2.11

"County Project Manager" has the meaning set forth in Paragraph 3.2,
County Project Manager, of this Agreement.

2.12

"CSA" means the Corrections Standards Authority of the State of
California.

2.13

"Department" means the Los Angeles County Sheriffs Department.

2.14

"Fiscal Year" means the twelve (12) month period beginning July 1 and
ending the following June 30.

2.15

"Maximum Annual Contract Sum" means the maximum amount payable
by the County to the Contractor in any contract year for providing the
required Work under this Agreement, inclusive of all applicable salaries,
benefits, administrative costs, overhead, and taxes, and more specifically
means the not-to-exceed amount set forth in Paragraph 5.0, Contract Sum
and Rates, of this Agreement. Notwithstanding, the Maximum Annual
Contract Sum does not include Non-Routine Medical Care Costs which
are payable by County directly to the medical or dental provider.

Friday, excluding County

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County of Los Angeles
Sheriffs Department

CCF Services Agreement

2.16

"Maximum Contract Sum" means the maximum amount payable by the
County to the Contractor for providing the required Work during the term
of this Agreement, inclusive of all applicable salaries, benefits,
administrative costs, overhead, and taxes, and more specifically means
the not-to-exceed amount set forth in Paragraph 5.0, Contract Sum and
Rates, of this Agreement. Notwithstanding, the Maximum Annual Contract
Sum does not include Non-Routine Medical Care Costs, which are
payable by County directly to the medical or dental provider.

2.17

"Non-Routine Medical Care" means treatment for any medical or dental
condition which requires hospitalization, emergency response, or
specialization that cannot be performed or provided by the CCF physician
or licensed nurses on-site and which is not otherwise provided by
Contractor's off-site medical and dental providers pursuant to the medical
and dental plan agreements between Contractor and its contracted
medical and dental provider(s). Examples of Non-Routine Medical Care
include surgery, neurological care, trauma, cardiac care, burns,
rape/sodomy cases, cancer treatment, "active" HIV/AIDS, and any care
that requires emergency or ambulance services.

2.18

"Non-Routine Medical Care Costs" means actual expenses incurred in the
provision of Non-Routine Medical Care provided to inmates by medical
and dental providers located within the vicinity of CCF, as well as
emergency transportation by ambulance to such medical and dental
providers. Such costs will be paid directly by the County to the local
medical and dental providers in accordance with Paragraph 5.4, Payments
for Non-Routine Medical Care, of this Agreement.

2.19

"Non-Routine Medical Custodial Costs" means expenses incurred by
Contractor in the provision of security and transportation of inmates
approved by County for Non-Routine Medical Care, including salaries and
overtime salaries/benefits for Contractor custodial staff when an inmate is
hospitalized, as further set forth in Paragraph 5.4, Payments for NonRoutine Medical Care, of this Agreement.

2.20

"Routine Medical Care" means treatment for any medical and dental
condition which is provided to inmates by contracted physicians, dentists,
and nurses to inmates either on-site at the CCF or off-site pursuant to the
medical and dental plan agreements between Contractor and its
contracted medical and dental provider(s). Routine Medical Care includes
treatment at the local "Urgent Care" facility operated by Contractor's
contracted medical provider, as well as transportation and custodial staff
salaries/overtime salaries and benefits associated with treatment at the
"Urgent Care" facility.

2.21

"Sheriff" means the Sheriff of the County of Los Angeles .

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County of Los Angeles
Sheriffs Department

CCF Services Agreement

3.0

4.0

2.22

"Special Custodial Costs" means expenses incurred by Contractor in the
provision of transportation of inmates and salaries and overtime salaries
and benefits incurred by Contractor when an inmate is transported by
Contractor to a destination previously approved by the County.

2.23

"Statement of Work" or "SOW" means the Statement of Work, attached as
Exhibit A, Statement of Work, to this Agreement, as the same may be
amended by any fully executed Amendment.

2.24

"STC" means the State of California, Corrections Standards Authority,
Standards and Training for Corrections Program.

2.25

"Title 15" means Title 15 of the California Code of Regulations.

2.26

"Title 24" means Title 24 of the California Code of Regulations.

2.27

"Type III Adult Detention Facility" means a local detention facility used for
the detention of convicted and sentenced adults.

2.28

"Work" means any and all tasks, subtasks, deliverables, goods, and other
services performed by or on behalf of Contractor including the work
required pursuant to this Agreement, including Exhibit A, Statement of
Work, and all other Exhibits to this Agreement, and any and all fully
executed Amendments hereto.

WORK
3.1

Pursuant to the provisions of this Agreement, the Contractor shall fully
perform, complete, and deliver on time, all tasks, deliverables, services and
other work as set forth herein, including Exhibit A, Statement of Work, of
this Agreement.

3.2

If the Contractor provides any tasks, deliverables, goods, services, or other
work, other than as specified in this Agreement, the same shall be deemed
to be a gratuitous effort on the part of the Contractor, and the Contractor
shall have no claim whatsoever against the County.

TERM OF AGREEMENT
4.1

The term of this Agreement shall commence upon execution by both
parties and shall terminate July 31, 2017, unless sooner terminated or
extended, in whole or in part, as provided in this Agreement.

4.2

The term of this Agreement may be extended upon the mutual consent of
the parties. All such extensions shall be in the form of a written
Amendment, executed by the County Board of Supervisors and
Contractor, in accordance with Paragraph 8.1.1 of this Agreement.
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5.0

4.3

The parties shall meet and confer at least one hundred and eighty (180)
calendar days prior to the expiration of this Agreement to discuss the
possible renewal or extension of this Agreement. Absent the mutual
consent of the parties and a written Amendment extending the term of this
Agreement in accordance with Paragraph 4.2 above, this Agreement shall
expire at the conclusion of the then-existing term.

4.4

This Agreement shall terminate immediately if this Agreement is deemed
to be unlawful or in the event that the authority for this Agreement
pursuant to California Penal Code section 4115.55 is revoked by
legislative action.

4.5

The County maintains databases that track/monitor contractor
performance history. Information entered into such databases may be
used for a variety of purposes, including determining whether the County
will exercise a contract term extension option.

4.6

In the event of termination by either party or upon expiration of this
Agreement, the Contractor and the County shall fully cooperate in the
transition and relocation of inmates to a new correctional facility.

CONTRACT SUM AND RATES
5.1

Maximum Annual Contract Sum and Maximum Contract Sum

5.1.1 The Maximum Annual Contract Sum, exclusive of Non-Routine
Medical Care Costs, shall not exceed $15,000,000.
5.1.2 The Maximum Contract Sum, exclusive of Non-Routine Medical
Care Costs, for the term of this Agreement shall not exceed
$75,000,000.
5.2

Facility Per-Diem Rate

5.2.1 The Contractor shall be paid for all services performed based upon
the facility per-diem rate set forth in Exhibit S, Price Schedule, of
this Agreement. The facility per-diem rate shall cover all inmate
housing, sustenance, supervision, education, programs, Routine
Medical Care, and other services and accommodations as required
by this Agreement and otherwise by law. In exchange for the
facility per-diem rate, the Contractor shall provide a minimum of
512 inmate beds per day. The facility per-diem rate does not
include Non-Routine Medical Care Costs, Non-Routine Medical
Custodial Costs, or Special Custodial Costs.
5.2.1.1

If, due to maintenance, emergency repairs, or any
other occurrence, the bed space made available by

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Contractor falls below the minimum 512 beds, then an
inmate per-diem rate shall be calculated as follows:
$31,000 daily facility per diem rate / 512 beds =
$60.55 per day per available bed.
5.2.2 The County shall begin to incur daily facility per-diem charges
pursuant to this Paragraph 5.2, Facility Per-Diem Rate, upon the
delivery of the first inmate to the CCF. If this Agreement is
executed and effective prior to the County's transportation and
delivery of inmates to the CCF, the County shall incur no charges
during that time period and prior to the inmate's arrival at the CCF.
5.2.3 The facility per-diem rate set forth on Exhibit B, Price Schedule, of
this Agreement shall be firm and fixed for the first two (2) years of
the Agreement. Thereafter, the County and the Contractor agree to
discuss a possible rate increase or decrease in the facility per-diem
rate. Any modification which increases the facility per-diem rate
shall be in the form of a written Amendment, executed by the
County Board of Supervisors and the Contractor, in accordance
with Paragraph 8.1.1 of this Agreement.
5.2.4 Notwithstanding other provisions in Paragraph 5.2, Facility PerDiem Rate, of this Agreement, during the first two months of the
Agreement or until a mutually agreed upon point in time, the
Contractor shall be paid a facility per-diem rate of $15,860 in
exchange for 260 inmate beds per day. This operation of the CCF
at partial capacity allows the parties a reasonable period of time to
establish workable policies, procedures, and practices for the
effective administration of the CCF. At the agreed upon point in
time when the facility is fully operational with full CCF staffing and
the ability to provide 512 inmate beds, then such facility per diem
shall increase to the regular facility per-diem rate contemplated in
. Paragraph 5.2.1 above and set forth on Exhibit B, Price Schedule,
of this Agreement.
5.3

Unemployment Insurance Reserve

5.3.1 The facility per diem rate and the inmate per diem rate referenced
in Paragraph 5.2, Facility Per Diem Rate, above include
contributions to an Unemployment Insurance Reserve ("UI
Reserve") for the Contractor's employees working at the CCF. The
UI Reserve is established for the sole and exclusive purpose of the
Contractor making unemployment insurance payments to CCF
employees who are terminated as the direct result of termination of
this Agreement.

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5.3.2 The County shall make contributions to the UI Reserve only for the
first thirty-six (36) months of this Agreement. The UI Reserve
contributions equal $334,000 per year or $1,002,000 for the first
thirty (36) months of this Agreement. Total contributions to the UI
Reserve shall not exceed $1,002,000, whereupon it shall be
considered fully funded.
5.3.3 After thirty-six (36) months of UI Reserve contributions have been
made by the County, then the County shall no longer be liable to
the Contractor for any UI Reserve contribution and the facility per
diem rate and inmate per diem rate shall be reduced accordingly by
way of written Amendment to this Agreement in accordance with
Paragraph 8.1.4 below.
5.3.4 If the County should terminate this Agreement pursuant to
Paragraph 8.37, Termination for Convenience, of this Agreement,
within the first thirty-six (36) months of the term of this Agreement,
then the County shall be required to fully fund the UI Reserve within
ninety (90) calendar days after the notice of termination is sent or
upon the date of actual termination of this Agreement, whichever is
later. The Contractor shall only then be authorized to access funds
from the UI Reserve to make unemployment insurance payments to
affected CCFemployees.
5.3.5 If the Contractor should terminate this Agreement pursuant to
Paragraph 8.37, Termination for Convenience, of this Agreement,
then the County shall not pay, and the Contractor shall not be
entitled to, any contributions to the UI Reserve. All contributions
shall be refunded to the County within thirty (30) calendar days of
the last date that the Contractor provided service to the County.
5.3.6 If this Agreement terminates early pursuant to Paragraph 4.4 of this
Agreement, then the County shall not pay, and the Contractor shall
not be entitled to, any contributions to the UI Reserve. All
contributions made to the UI Reserve shall be refunded to the
County within thirty (30) calendar days of the last date the
Contractor provided service to the County.
5.3.7 If the County terminates this Agreement pursuant to Paragraph
8.36, Termination for Breach of Warranty to Maintain Compliance
with County's Child Support Compliance Program, Paragraph 8.38,
Termination for Default, Paragraph 8.39, Termination for Improper
Consideration, Paragraph 8.40, Termination for Insolvency,
Paragraph 8.41, Termination for Non-Adherence of County
Lobbyist Ordinance, or Paragraph 8.46, Termination for Breach of
Warranty to Maintain Compliance with County's Defaulted Property
Tax Reduction Program, of this Agreement, then the County shall

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not pay, and the Contractor shall not be entitled to, any
contributions to the UI Reserve. All contributions made to the UI
Reserve shall be refunded to the County within thirty (30) calendar
days of the last date the Contractor provided service to the County.
5.3.8 The Contractor shall provide the County with a written accounting
of the contributions made to the UI Reserve and the amount on
deposit in the UI Reserve as of June 30 of each year within ninety
(90) calendar days following the end of each fiscal year.
5.3.9 In the event that the County exercises its option to terminate this
Agreement after the first thirty-six (36) months of the Agreement
and the Contractor enters into a separate contract with a successor
agency for use of the CCF within twenty-four (24) months following
the County's termination of this Agreement, then the Contractor
shall refund the County for any unexpended amounts on deposit in
the UI Reserve at the time such successor contract is executed.
Should no successor contract be executed after twenty-four (24)
months, then the County shall release all interest in the remaining
UI Reserve balance.
5.4

State Debt Service Payments

5.4.1 The facility per diem rate and the inmate per bed rate referenced in
Paragraph 5.2, Facility Per Diem Rate, above includes full
contribution for the annual debt service payment due on the 1997
Taft Community Correctional Facility Acquisition Project bond issue
("CCF Bonds").
5.4.2 The Contractor shall make a "good-faith" effort, and take all
reasonable actions, to pursue reimbursement from the State of
California for damages and liabilities incurred by the Contractor due
to the State's termination of its lease of the CCF. Such liabilities
include debt service payments due on the CCF Bonds.
5.4.3 In the event that the State makes the debt service payments due on
the CCF Bonds, the Contractor shall credit the County for said
payments made to the Contractor for such debt service payments,
dollar for dollar, in the subsequent monthly invoice(s) to the County.
5.4.4 At the point in time that the CCF Bonds are paid in full or it is
determined that such debt service payment liability belongs to the
State, the County shall no longer be liable to the Contractor for any
debt service payment contribution, and the facility per diem rate
and inmate per diem rate shall be reduced accordingly by way of
written Amendment to this Agreement in accordance with
Paragraph 8.1.4 below.

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5.5

One-Time Payment of Start-Up Costs

Upon execution of this Agreement by both parties, the County shall pay to
the Contractor a one-time payment for Contractor start-up costs in a sum
of $475,800. Contractor shall prepare and submit an invoice to the
County Project Manager prior to payment by the County.
5.6

Payments for Non-Routine Medical Care

5.6.1 The costs associated with Non-Routine Medical Care shall be the
responsibility of the County as set forth herein.
5.6.2 The County shall pay the Non-Routine Medical Care Costs, which
include the actual medical expenses incurred in the provision of
Non-Routine Medical Care to inmates by medical and dental
providers located within the vicinity of CCF, as well as emergency
transportation by ambulance to such medical and dental providers.
Such costs shall be paid directly by the County to the local medical
and dental providers. The Contractor shall assist, as necessary, in
the facilitation of billing and payments between the County and the
local medical and dental providers.
5.6.3 The County shall reimburse the Contractor for Non-Routine Medical
Custodial Costs, which include transportation and salaries/overtime
salaries and benefits for Contractor custodial staff when an inmate
requires hospitalization or other off-site Non-Routine Medical Care.
The Contractor shall be reimbursed a flat hourly rate, inclusive of
transportation and custodial staff salary/benefits, not to exceed the
amount set forth on Exhibit B, Price Schedule, of this Agreement.
5.6.4 Prior to the Contractor seeking non-emergency, non-life-threatening
Non-Routine Medical Care for an inmate, the Contractor must seek
pre-approval for such Non-Routine Medical Care from the Sheriff's
Department Medical Services Bureau Command Post at
213-893-5544 or such expenses shall not be reimbursable or paid
by the County; otherwise, the County shall not reimburse the
Contractor for any Non-Routine Medical Custodial Costs and the
Contractor shall be solely responsible for any billings resulting from
the Non-Routine Medical Care provided to the inmate.
5.6.5 In emergency, life-threatening situations, Non-Routine Medical
Care shall hereby be deemed pre-approved by the County.
However, the Contractor shall provide notice to County as soon as
reasonably practicable, but not later than four (4) hours after the
occurrence of the inmate's condition which gave rise to the need for
hospitalization or emergency care.
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5.7

Special Custodial Costs

5.7.1 The County shall reimburse the Contractor for Special Custodial
Costs, which include transportation and salaries/overtime salaries
and benefits for Contractor custodial staff when the Contractor
transports an inmate to a destination previously approved by the
County. The Contractor shall be reimbursed a flat hourly rate,
inclusive of transportation and custodial staff salary/benefits, not to
exceed the amount set forth on Exhibit 8, Price Schedule, of this
Agreement.
5.7.2 The costs of inmate tram~portation payable under this Paragraph
5.7 must be pre-approved by the County or such expenses shall
not be reimbursable by the County.

5.8

The Contractor shall not be entitled to payment or reimbursement for any
tasks or services performed, nor for any incidental or administrative
expenses whatsoever incurred in or incidental to performance hereunder,
except as specified herein. Assumption or takeover of any of the
Contractor's duties, responsibilities, or obligations, or performance of
same by any entity other than the Contractor, whether through
assignment, subcontract, delegation, merger, buyout, or any other
mechanism, with or without consideration for any reason whatsoever, shall
occur only with the County's express prior written approval.

5.9

The Contractor shall maintain a system of record keeping that will allow
the Contractor to determine when it has incurred seventy-five percent
(75%) of the Maximum Contract Sum under this Agreement. Upon
occurrence of this event, the Contractor shall send written notification to
the County Project Director and County Project Director at the addresses
set forth in Paragraph 6.0, Administration of Agreement-County, of this
Agreement.

5.10

The Contractor shall have no claim against the County for payment of any
money or reimbursement, of any kind whatsoever, for any service
provided by the Contractor after the expiration or other termination of this
Agreement. Should the Contractor receive any such payment it shall
immediately notify County and shall immediately repay all such funds to
the County.
Payment by the County for services rendered after
expiration/termination of this Agreement shall not constitute a waiver of
County's right to recover such payment from the Contractor. This
provision shall survive the expiration or other termination of this
Agreement.

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5.11

Invoices and Payments

5.11.1 All Work performed under this Agreement shall be payable in
arrears on a monthly basis in accordance with the terms and
conditions of this Agreement, including this Paragraph 5.0, Contract
Sum and Rates.
5.11.2 The Contractor shall prepare and submit invoices to the County for
Work provided under this Agreement. The Contractor's invoices
shall be priced at the inmate per-diem rate set forth in Paragraph 5.2,
Facility Per-Diem Rate, of this Agreement and shall set forth the total
amount claimed. All invoices shall include a roster of inmates, which
sets forth the inmate's name, booking number, the number of days
for which payment is sought, and the facility per diem rate or inmate
per diem rate, as applicable.
5.11.3 Monthly invoices shall also include separate sections for
reimbursement claims for Non-Routine Medical Custodial Costs and
Special Custodial Costs, if any. The claim shall reflect the hourly
rate set forth on Exhibit B, Price Schedule, of this Agreement and the
number of custodial staff and hours for service. The Contractor shall
attach documentation sufficient to justify reimbursement of such
costs. The documentation required shall be mutually agreed upon
by the County and the Contractor.
5.11.4 The Contractor shall submit the monthly invoices to the County by
the 15th calendar day of the month following the month of service.
5.11.5 All invoices under this Agreement shall be submitted in two (2)
copies to the following address:
Los Angeles County Sheriffs Department
Fiscal Administration
Attn: Accounts Payable-3 rd Floor
4700 Ramona Boulevard
Monterey Park, California 91754
5.11.6 All invoices submitted by the Contractor for payment must have the
written approval of the County's Project Manager prior to any
payment thereof. In no event shall the County be liable or
responsible for any payment prior to such written approval.
Approval for payment will not be unreasonably withheld

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6.0

ADMINISTRATION OF AGREEMENT - COUNTY
6.1

COUNTY PROJECT DIRECTOR

6.1.1

The County Project Director shall be the following person:
Chief Alexander Vim
450 Bauchet Street
Los Angeles, California 90012
Phone: 213-893-5017
Fax: 323-415-3983
Email: ARYim@lasd.org

6.1.2 The County Project Director shall be responsible for ensuring that
the objectives of this Agreement are met and providing direction to
the Contractor in the areas relating to County policy, information
requirements, and procedural requirements.
6.1.3 The County Project Director is not authorized to make any changes
in any of the terms and conditions of this Agreement and is not
authorized to further obligate County in any respect whatsoever.
6.1.4 The County shall notify the Contractor in writing of any change in
the name or address of the County Project Director listed above.
6.2

COUNTY PROJECT MANAGER

6.2.1

The County Project Manager shall be the following person:
Commander David Fender
450 Bauchet Street
Los Angeles, California 90012
Phone: 213-893-5888
Fax: 323-415-3311
Email: DLFender@lasd.org

6.2.2 The County Project Manager shall be responsible for meeting with
the Contractor Project Manager on a regular basis and inspecting
any and all tasks, deliverables, goods, services, or other work
provided by or on behalf of the Contractor.
6.2.3 The County Project Manager is not authorized to make any
changes in any of the terms and conditions of this Agreement and
is not authorized to further obligate County in any respect
whatsoever.

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6.2.4 The County shall notify the Contractor in writing of any change in
the name or address of the County Project Manager listed above.
6.2.5 The County Project Manager, at his discretion, may designate in
writing a person or person(s) which shall serve as the daily direct
County contact for various issues relating to this Agreement.

7.0

ADMINISTRATION OF AGREEMENT - CONTRACTOR
7.1

CONTRACTOR PROJECT DIRECTOR

7.1.1 The Contractor Project Director shall be the following person:
Ed Whiting
320 Commerce Way
Taft, California 93268
Phone: 661-763-3101
Fax: 661-763-4726
Email: whitingtpd@bak.rr.com
7.1.2 The Contractor Project Director shall be responsible for
Contractor's performance of all of Work and ensuring Contractor's
compliance with this Agreement.
7.1.3 During the term of this Agreement, the Contractor Project Director
shall be available to meet and confer with the County Project
Director at least weekly, in person or by phone, to review project
progress and discuss project coordination.
7.1.4 The Contractor shall notify the County in writing of any change in the
name or address of the Contractor Project Director listed above.
7.2

CONTRACTOR PROJECT MANAGER

7.2.1 The Contractor Project Manager shall be the following person:
Laura Dillingham
320 Commerce Way
Taft, California 93268
Phone: 661-763-3101
Fax: 661-763-4726
Email: Dillingham-ccf@bak.rr.com
7.2.2 The Contractor Project Manager shall be responsible
Contractor's day-to-day activities as related to this Agreement.

for

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7.2.3 During the term of the Agreement, the Contractor Project Manager
shall be available to confer with County by telephone, as
necessary.
7.2.4 The Contractor shall notify the County in writing of any change in
the name or address of Contractor Project Manager listed above.
7.2.5 The Contractor Project Manager shall provide the County Project
Manager with emergency contact information in the event of an
emergency.

8.0

STANDARD TERMS AND CONDITIONS
8.1

AMENDMENTS
8.1.1

For any change which materially affects the scope of Work, term,
Price Schedule, Maximum Contract Sum, payments, or any term or
condition included under this Agreement, an Amendment to the
Agreement shall be executed by the Contractor and the Board.

8.1.2 For any change which does not materially affect the scope of Work,
period of performance, amount of payments, or any other term or
condition included under this Agreement, an Amendment to the
Agreement shall be executed by the Contractor and the Sheriff.
8.1.3 The County's Board or Chief Executive Officer or designee may
require the addition and/or change of certain terms and conditions in
the Agreement during the term of this Agreement. The County
reserves the right to add and/or change such provisions as required
by the County's Board or Chief Executive Officer. To implement
such changes, an Amendment to the Agreement shall be executed
by the Contractor and the Sheriff.
8.1.4 Notwithstanding Paragraph 8.1.1 of the Agreement, for (1) any
change to the business processes, operational requirements, or
other services set forth in Exhibit A, Statement of Work, or elsewhere
in this Agreement, which do not increase the facility per-diem rate
and/or the Maximum Annual Contract Sum, and (2) any decrease in
the facility per-diem rate for which the same services are provided,
an Amendment shall be executed by the Contractor and the Sheriff.

8.2

ASSIGNMENT AND DELEGATION
8.2.1

The Contractor shall not assign its rights or delegate its duties
under this Agreement, or both, whether in whole or in part, without
the prior written consent of County, in its discretion, and any
attempted assignment or delegation without such consent shall be
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null and void. For purposes of this sub-paragraph, County consent
shall require a written amendment to the Agreement, which is
formally approved and executed by the parties. Any payments by
the County to any approved delegate or assignee on any claim
under this Agreement shall be deductible, at County's sole
discretion, against the claims, which the Contractor may have
against the County.
8.2.2

8.3

Any assumption, assignment, delegation, or takeover of any of the
Contractor's duties, responsibilities, obligations, or performance of
same by any entity other than the Contractor, whether through
assignment, subcontract, delegation, merger, buyout, or any other
mechanism, with or without consideration for any reason
whatsoever without County's express prior written approval, shall
be a material breach of the Agreement which may result in the
termination of this Agreement. In the event of such termination,
County shall be entitled to pursue the same remedies against
Contractor as it could pursue in the event of default by Contractor.

AUTHORIZATION WARRANTY

The Contractor represents and warrants that the person executing this
Agreement for the Contractor is an authorized agent who has actual
authority to bind the Contractor to each and every term, condition, and
obligation of this Agreement and that all requirements of the Contractor
have been fulfilled to provide such actual authority.

8.4

BACKGROUND AND SECURITY INVESTIGATIONS

8.4.1

Each of Contractor's staff performing services under this
Agreement, unless currently employed by Contractor in a sworn
peace officer status, shall undergo and pass a background
investigation to the satisfaction of the County as a condition of
beginning and continuing to perform services under this
Agreement. Such background investigation may include, but shall
not be limited to, criminal conviction information obtained through
fingerprints submitted to the California Department of Justice. The
fees associated with the background investigation shall be at the
sole expense of the Contractor, regardless if the member of the
Contractor's staff passes or fails the background investigation.

8.4.2 If a member of the Contractor's proposed staff does not pass the
background investigation, the proposed staff member may not be
hired by Contractor to perform services under this Agreement. If
the County becomes aware of any derogatory information about
any Contractor staff member, the derogatory information will be
passed on to the Contractor's Internal Affairs officer for an

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investigation. The results of the investigation shall be made
available to the County at the conclusion of the investigation.
8.4.3 Disqualification of any member of the Contractor's staff pursuant to
this Paragraph 8.4 shall not relieve the Contractor of its obligation
to complete all Work in accordance with the terms and conditions of
this Agreement.
8.4.4 The Contractor shall provide the County with written notice
regarding any subcontractor or volunteer who will be working in the
CCF or having contact with inmates.
Contractor shall be
responsible for conducting background investigations, as provided
in this Paragraph 8.4, Background and Security Investigations, of
this Agreement, for each subcontractor, their employees, and each
volunteer who will be working in the CCF or having contact with
inmates as a condition for beginning and continuing to perform
services within the CCF or in contact with inmates.

8.5

BUDGET REDUCTIONS
8.5.1

In the event that the County's Board of Supervisors adopts, in any
fiscal year, a County Budget which provides for reductions in the
salaries and benefits paid to the majority of County employees and
imposes similar reductions with respect to County contracts, the
County reserves the right to reduce its payment obligation under
this Agreement correspondingly for that fiscal year and any
subsequent fiscal year during the term of this Agreement (including
any extensions), and the services to be provided by the Contractor
under this Agreement shall also be reduced correspondingly. The
County's notice to the Contractor regarding said reduction in
payment obligation shall be provided within thirty (30) calendar
days of the Board's approval of such actions. Except as set forth in
the preceding sentence, the Contractor shall continue to provide all
of the services set forth in this Agreement.

8.5.2 If in the sole discretion of the Contractor, it is determined that the
services provided pursuant to this Agreement cannot be continued
effectively within the reduced compensation, the Contractor shall
have the right to terminate this Agreement with ninety (90) calendar
days advance written notice to the County.
8.5.2.1

If the Contractor terminates this Agreement pursuant
to Paragraph 8.5.2 above, Contractor shall be
authorized to access funds from the UI Reserve to
make unemployment insurance payments to affected
CCF employees. Upon the notice of termination by
the Contractor, the County shall be immediately
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released from its obligation to make any remaining
contributions to the UI Reserve or to otherwise fully
fund the UI Reserve.

B.6

COMPLAINTS

The Contractor shall develop, maintain and operate procedures for
receiving, investigating, and responding to inmate complaints.
8.6.1 Within ten (10) Business Days after the effective date of this
Agreement, the Contractor shall provide the County with the
Contractor's policy for receiving, investigating and responding to
inmate complaints.
8.6.2 The County will review the Contractor's policy and provide the
Contractor with approval of said plan or with requested changes.
8.6.3 If the County requests changes in the Contractor's policy, the
Contractor shall make such changes and resubmit the plan within
ten (10) Business Days for County approval.
8.6.4 If, at any time, the Contractor wishes to change the Contractor's
policy, the Contractor shall submit proposed changes to the County
for approval before implementation.
8.6.5 The Contractor shall preliminarily investigate all complaints and
notify the County's Project Manager of the status of the investigation
within thirty (30) Business Days of receiving the complaint.
8.6.6 When complaints cannot be resolved informally, a system of followthrough shall be instituted which adheres to formal plans for specific
actions and strict time deadlines.
8.6.7 Copies of all written responses shall be sent to the County Project
Manager within thirty (30) Business Days of delivery to the
complainant.

B.7

COMPLIANCE WITH APPLICABLE LAW

8.7.1

In the performance of this Agreement, Contractor shall comply with
all applicable Federal, State and local laws, rules, regulations,
ordinances, directives, guidelines, policies and procedures, and all
provisions required thereby to be included in this Agreement are
hereby incorporated herein by reference.

8.7.2 Contractor shall indemnify, defend, and hold harmless County, its
officers, employees, and agents, from and against any and all
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claims, demands, damages, liabilities, losses, costs, and expenses,
including, without limitation, defense costs and legal, accounting
and other expert, consulting or professional fees, arising from,
connected with, or related to any failure by Contractor, its officers,
employees, agents, or subcontractors, to comply with any such
laws, rules, regulations, ordinances, directives, guidelines, policies,
or procedures, as determined by County in its sole judgment. Any
legal defense pursuant to Contractor's indemnification obligations
under this Paragraph 8.7 of the Agreement shall be conducted by
Contractor and performed by counsel selected by Contractor and
approved by County. Notwithstanding the preceding sentence,
County shall have the right to participate in any such defense at its
sole cost and expense, except that in the event Contractor fails to
provide County with a full and adequate defense, as determined by
County in its sole judgment, County shall be entitled to retain its
own counsel, including, without limitation, County Counsel, and
reimbursement from Contractor for all such costs and expenses
incurred by County in dOing so. Contractor shall not have the right
to enter into any settlement, agree to any injunction or other
equitable relief, or make any admission, in each case, on behalf of
County without County's prior written approval.

8.8

COMPLIANCE WITH CIVIL RIGHTS LAWS

The Contractor hereby assures that it will comply with Subchapter VI of
the Civil Rights Act of 1964, 42 USC Sections 2000 (e) (1) through
2000 (e) (17), to the end that no person shall, on the grounds of race,
creed, color, sex, religion, ancestry, age, condition of physical handicap,
marital status, political affiliation, or national origin, be excluded from
participation in, be denied the benefits of, or be otherwise subjected to
discrimination under this Agreement or under any project, program, or
activity supported by this Agreement.

8.9

COMPLIANCE WITH THE CONTRACTOR'S JURY SERVICE PROGRAM

Contractor shall comply with the Contractor's own written policies
regarding employee jury service, including the City of Taft Human
Resources Policies and Procedures Manual, Section 308, Employee
Benefits, as such section may be amended from time to time. Compliance
with the Kern County and City of Taft jury service policies shall be deemed
to be compliance with the Los Angeles County Jury Service Program.
8.10

CONFIDENTIALITY

8.10 .1 Contractor shall maintain the confidentiality of all records and
information in accordance with all applicable Federal, State and
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local laws, rules, regulations, ordinances, directives, guidelines,
policies and procedures relating to confidentiality, including, without
limitation, County policies concerning information technology
security and the protection of confidential records and information.
8.10.2 Contractor shall indemnify, defend, and hold harmless County, its
officers, employees, and agents, from and against any and all
claims, demands, damages, liabilities, losses, costs and expenses,
including, without limitation, defense costs and legal, accounting
and other expert, consulting, or professional fees, arising from,
connected with, or related to any failure by Contractor, its officers,
employees, agents, or subcontractors, to comply with this
Paragraph 8.10, as determined by County in its sole judgment. Any
legal defense pursuant to Contractor's indemnification obligations
under this Paragraph 8.10 shall be conducted by Contractor and
performed by counsel selected by Contractor and approved by
County. Notwithstanding the preceding sentence, County shall
have the right to participate in any such defense at its sole cost and
expense, except that in the event Contractor fails to provide County
with a full and adequate defense, as determined by County in its
sole judgment, County shall be entitled to retain its own counsel,
including, without limitation, County Counsel, and reimbursement
from Contractor for all such costs and expenses incurred by County
in doing so. Contractor shall not have the right to enter into any
settlement, agree to any injunction, or make any admission, in each
case, on behalf of County without County's prior written approval.

8.11

CONFLICT OF INTEREST
8.11.1

No County employee whose position with the County enables such
employee to influence the award of this Agreement or any
competing Agreement, and no spouse or economic dependent of
such employee, shall be employed in any capacity by the
Contractor or have any other direct or indirect financial interest in
this Agreement. No officer or employee of the Contractor who may
financially benefit from the performance of work hereunder shall in
any way participate in the County's approval, or ongoing
evaluation, of such work, or in any way attempt to unlawfully
influence the County's approval or ongoing evaluation of
such work.

8.11.2

The Contractor shall comply with all conflict of interest laws,
ordinances, and regulations now in effect or hereafter to be
enacted during the term of this Contract. The Contractor warrants
that it is not now aware of any facts that create a conflict of
interest. If the Contractor hereafter becomes aware of any facts
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that might reasonably be expected to create a conflict of interest,
it shall immediately make full written disclosure of such facts to
the County. Full written disclosure shall include, but is not limited
to, identification of all persons implicated and a complete
description of all relevant circumstances. Failure to comply with
the provisions of this Paragraph shall be a material breach of this
Agreement.
8.12

CONTRACTOR RESPONSIBILITY AND DEBARMENT
8.12.1

Responsible Contractor
A responsible Contractor is a Contractor who has demonstrated
the attribute of trustworthiness, as well as quality, fitness, capacity
and experience to satisfactorily perform the contract. It is the
County's policy to conduct business only with responsible
Contractors.

8.12.2

Chapter 2.202 of the County Code
The Contractor is hereby notified that, in accordance with Chapter
2.202 of the County Code, if the County acquires information
concerning the performance of the Contractor on this or other
contracts which indicates that the Contractor is not responsible,
the County may, in addition to other remedies provided in the
Agreement, debar the Contractor from bidding or proposing on, or
being awarded, and/or performing work on County contracts for a
specified period of time, which generally will not exceed five (5)
years but may exceed five (5) years or be permanent if warranted
by the circumstances, and terminate any or all existing contracts
the Contractor may have with the County.

8.12.3

Non-responsible Contractor
The County may debar a Contractor if the Board of Supervisors
finds, in its discretion, that the Contractor has done any of the
following: (1) violated a term of a contract with the County or a
nonprofit corporation created by the County, (2) committed an act
or omission which negatively reflects on the Contractor's quality,
fitness or capacity to perform a contract with the County, any
other public entity, or a nonprofit corporation created by the
County, or engaged in a pattern or practice which negatively
reflects on same, (3) committed an act or offense which indicates
a lack of business integrity or business honesty, or (4) made or
submitted a false claim against the County or any other public
entity.
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8.12.4

County of Los Angeles
Sheriff's Department

Contractor Hearing Board
1.

If there is evidence that the Contractor may be subject to
debarment, the Department will notify the Contractor in
writing of the evidence which is the basis for the proposed
debarment and will advise the Contractor of the scheduled
date for a debarment hearing before the Contractor Hearing
Board.

2.

The Contractor Hearing Board will conduct a hearing where
evidence on the proposed debarment is presented. The
Contractor and/or the Contractor's representative shall be
given an opportunity to submit evidence at that hearing.
After the hearing, the Contractor Hearing Board shall
prepare a tentative proposed decision, which shall contain a
recommendation regarding whether the Contractor should
be debarred, and, if so, the appropriate length of time of the
debarment. The Contractor and the Department shall be
provided an opportunity to object to the tentative proposed
decision prior to its presentation to the Board of Supervisors.

3.

After consideration of any objections, or if no objections are
submitted, a record of the hearing, the proposed decision,
and any other recommendation of the Contractor Hearing
Board shall be presented to the Board of Supervisors. The
Board of Supervisors shall have the right to modify, deny, or
adopt the proposed decision and recommendation of the
Contractor Hearing Board.

4.

If a Contractor has been debarred for a period longer than
five (5) years, that Contractor may after the debarment has
been in effect for at least five (5) years, submit a written
request for review of the debarment determination to reduce
the period of debarment or terminate the debarment. The
County may, in its discretion, reduce the period of
debarment or terminate the debarment if it finds that the
Contractor has adequately demonstrated one or more of the
following: (1) elimination of the grounds for which the
debarment was imposed; (2) a bona fide change in
ownership or management; (3) material evidence discovered
after debarment was imposed; or (4) any other reason that is
in the best interests of the County.

5.

The Contractor Hearing Board will consider a request for
review of a debarment determination only where (1) the
Contractor has been debarred for a period longer than five
(5) years; (2) the debarment has been in effect for at least
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five (5) years; and (3) the request is in writing, states one or
more of the grounds for reduction of the debarment period or
termination of the debarment, and includes supporting
documentation. Upon receiving an appropriate request, the
Contractor Hearing Board will provide notice of the hearing
on the request. At the hearing, the Contractor Hearing
Board shall conduct a hearing where evidence on the
proposed reduction of debarment period or termination of
debarment is presented. This hearing shall be conducted
and the request for review decided by the Contractor
Hearing Board pursuant to the same procedures as for a
debarment hearing.
6.

8.12.5

The Contractor Hearing Board's proposed decision shall
contain a recommendation on the request to reduce the
period of debarment or terminate the debarment. The
Contractor Hearing Board shall present its proposed
decision and recommendation to the Board of Supervisors.
The Board of Supervisors shall have the right to modify,
deny, or adopt the proposed decision and recommendation
of the Contractor Hearing Board.

Subcontractors of Contractor

These terms shall also apply to subcontractors of County
Contractors.
8.13

CONTRACTOR'S WARRANTY OF ADHERENCE TO COUNTY'S CHILD
SUPPORT COMPLIANCE PROGRAM

8.13.1 The Contractor acknowledges that the County has established a
goal of ensuring that all individuals who benefit financially from the
County through contract are in compliance with their court-ordered
child, family and spousal support obligations in order to mitigate the
economic burden otherwise imposed upon the County and its
taxpayers.
8.13.2 As required by the County's Child Support Compliance Program
(County Code Chapter 2.200) and without limiting the Contractor's
duty under this Contract to comply with all applicable provisions of
law, the Contractor warrants that it is now in compliance and shall
during the term of this Agreement maintain in compliance with
employment and wage reporting requirements as required by the
Federal Social Security Act (42 USC Section 653a) and California
Unemployment Insurance Code Section 1088.5, and shall implement
all lawfully served Wage and Earnings Withholding Orders or Child
Support Services Department Notices of Wage and Earnings
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Assignment for Child, Family or Spousal Support, pursuant to Code
of Civil Procedure Section 706.031 and Family Code Section
5246(b).

8.14

COUNTY'S QUALITY ASSURANCE PLAN
8.14.1 The County or its agent will evaluate the Contractor's performance
under this Agreement on not less than an annual basis. Such
evaluation will include assessing the Contractor's compliance with all
Agreement terms and conditions and performance standards.
Contractor deficiencies which the County determines are severe or
continuing and that may place performance of the Agreement in
jeopardy if not corrected will be reported to the Board of Supervisors.
8.14.2 The report will include improvement/corrective action measures
taken by the County and the Contractor. If improvement does not
occur consistent with the corrective action measures, the County
may terminate this Agreement or impose other penalties as specified
in this Agreement.

8.15

EMPLOYMENT ELIGIBILITY VERIFICATION
8.15.1 The Contractor warrants that it fully complies with all Federal and
State statutes and regulations regarding the employment of aliens
and others and that all its employees performing work under this
Agreement meet the citizenship or alien status requirements set
in
Federal and State statutes and regulations.
The
forth
Contractor shall obtain, from all employees performing work
hereunder, all verification and other documentation of employment
eligibility status required by Federal and State statutes and
regulations including, but not limited to, the Immigration Reform and
Control Act of 1986 (P.L. 99-603), or as they currently exist and as
they may be hereafter amended. The Contractor shall retain all
such documentation for all covered employees for the period
prescribed by law.
8.15.2 The Contractor shall indemnify, defend, and hold harmless, the
County, its agents, officers, and employees from employer
sanctions and any other liability which may be assessed against the
Contractor or the County or both in connection with any alleged
violation of any Federal or State statutes or regulations pertaining
to the eligibility for employment of any persons performing work
under this Agreement.

8.16

FACSIMILE REPRESENTATIONS
The County and the Contractor hereby agree to regard facsimile
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representations of original signatures of authorized officers of each party,
when appearing in appropriate places on the Amendments prepared
pursuant to Paragraph 8.1, Amendments, of this Agreement and received
via communications facilities, as legally sufficient evidence that such
original signatures have been affixed to Amendments to this Agreement,
such that the parties need not follow up facsimile transmissions of such
documents with subsequent (non-facsimile) transmission of "original"
versions of such documents.
8.17

FAIR LABOR STANDARDS

The Contractor shall comply with all applicable provisions of the Federal
Fair Labor Standards Act and shall indemnify, defend, and hold harmless
the County and its agents, officers, and employees from any and all liability,
including, but not limited to, wages, overtime pay, liquidated damages,
penalties, court costs, and attorneys' fees arising under any wage and hour
law, including, but not limited to, the Federal Fair Labor Standards Act, for
work performed by the Contractor's employees for which the County may
be found jOintly or solely liable.
8.18

FORCE MAJEURE

8.18.1 Neither party shall be liable for such party's failure to perform its
obligations under and in accordance with this Agreement, if such
failure arises out of fires, floods, epidemics, quarantine restrictions,
other natural occurrences, strikes, lockouts (other than a lockout by
such party or any of such party's subcontractors), freight
embargoes, or other similar events to those described above, but in
every such case the failure to perform must be totally beyond the
control and without any fault or negligence of such party (such
events are referred to in this sub-paragraph as "force majeure
events").
8.18.2 Notwithstanding the foregoing, a default by a subcontractor of
Contractor shall not constitute a force majeure event, unless such
default arises out of causes beyond the control of both Contractor
and such subcontractor, and without any fault or negligence of
either of them. In such case, Contractor shall not be liable for
failure to perform, unless the goods or services to be furnished by
the subcontractor were obtainable from other sources in sufficient
time to permit Contractor to meet the required performance
schedule. As used in this sub-paragraph, the term "subcontractor"
and "subcontractors" mean subcontractors at any tier.
8.18.3 In the event Contractor's failure to perform arises out of a force
majeure event, Contractor agrees to use commercially reasonable
best efforts to obtain goods or services from other sources, if

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applicable, and to otherwise mitigate the damages and reduce the
delay caused by such force majeure event.

8.19

GOVERNING LAW, JURISDICTION, AND VENUE
This Agreement shall be governed by, and construed in accordance with,
the laws of the State of California. The Contractor agrees and consents to
the exclusive jurisdiction of the courts of the State of California for all
purposes regarding this Agreement and further agrees and consents that
venue of any action brought hereunder shall be exclusively in the County of
Los Angeles.

8.20

INDEPENDENT CONTRACTOR STATUS
8.20.1 This Agreement is by and between the County and the Contractor
and is not intended, and shall not be construed, to create the
relationship of agent, servant, employee, partnership, joint venture,
or association, as between the County and the Contractor. The
employees and agents of one party shall not be, or be construed to
be, the employees or agents of the other party for any purpose
whatsoever.
8.20.2 The Contractor shall be solely liable and responsible for providing to,
or on behalf of, all persons performing work pursuant to this
Agreement all compensation and benefits. The County shall have no
liability or responsibility for the payment of any salaries, wages,
unemployment benefits, disability benefits, Federal, State, or local
taxes, or other compensation, benefits, or taxes for any personnel
provided by or on behalf of the Contractor.
8.20.3 The Contractor understands and agrees that all persons performing
work pursuant to this Agreement are, for purposes of Workers'
Compensation liability, solely employees of the Contractor and not
employees of the County. The Contractor shall be solely liable and
responsible for furnishing any and all Workers' Compensation
benefits to any person as a result of any injuries arising from or
connected with any work performed by or on behalf of the Contractor
pursuant to this Agreement.
8.20.4 The Contractor shall adhere to the provisions stated in Paragraph
8.10, Confidentiality, of this Agreement.

8.21

INDEMNIFICATION
8.21.1 The Contractor shall indemnify, defend and hold harmless the
County, its Special Districts, elected and appointed officers,
employees, and agents from and against any and all liability,

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including but not limited to demands, claims, actions, fees, costs,
and expenses (including attorney and expert witness fees), arising
from or connected with the Contractor's acts and/or omissions
arising from and/or relating to this Agreement.
8.21.2 The County shall indemnify, defend and hold harmless the
Contractor, its elected and appointed officers, employees, and
agents from and against any and all liability, including but not
limited to demands, claims, actions, fees, costs, and expenses
(including attorney and expert witness fees), arising from or
connected with the County's acts and/or omissions arising from
and/or relating to this Agreement.
8.22

GENERAL PROVISIONS FOR ALL INSURANCE COVERAGE

Without limiting Contractor's indemnification of County, and in the
performance of this Agreement and until all of its obligations pursuant to
this Agreement have been met, Contractor shall provide and maintain at
its own expense insurance coverage satisfying the requirements specified
in Paragraphs 8.22 and 8.23 of this Agreement.
These minimum
insurance coverage terms, types and limits (the "Required Insurance")
also are in addition to and separate from any other contractual obligation
imposed upon Contractor pursuant to this Agreement. The County in no
way warrants that the Required Insurance is sufficient to protect the
Contractor for liabilities which may arise from or relate to this Agreement.
8.22.1

Evidence of Coverage and Notice to County

•

Certificate(s) of insurance coverage (Certificate) satisfactory to
County, and a copy of an Additional Insured endorsement
confirming County and its Agents (defined below) has been
given Insured status under the Contractor's General Liability
policy, shall be delivered to County at the address shown
below and provided prior to commencing services under this
Agreement.

•

Renewal Certificates shall be provided to County not less than
ten (10) calendar days prior to Contractor's policy expiration
dates. The County reserves the right to obtain complete,
certified copies of any required Contractor and/or SubContractor insurance policies at any time.

•

Certificates shall identify all Required Insurance coverage
types and limits specified herein, reference this Agreement by
name or number, and be signed by an authorized
representative of the insurer(s). The Insured party named on
the Certificate shall match the name of the Contractor

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identified as the contracting party in this Agreement.
Certificates shall provide the full name of each insurer
providing coverage, its NAIC (National Association of
Insurance Commissioners) identification number, its financial
rating, the amounts of any policy deductibles or self-insured
retentions exceeding fifty thousand ($50,000.00) dollars, and
list any County required endorsement forms.
•

Neither the County's failure to obtain, nor the County's receipt
of, or failure to object to a non-complying insurance certificate
or endorsement, or any other insurance documentation or
information provided by the Contractor, its insurance broker(s)
and/or insurer(s), shall be construed as a waiver of any of the
Required Insurance provisions.

•

Certificates and copies of any required endorsements shall be
sent to:
Los Angeles County Sheriff's Department
Attn: Commander David Fender
450 Bauchet Street
Los Angeles, California 90012

•

8.22.2

Contractor also shall promptly report to County any injury or
property damage accident or incident, including any injury to a
Contractor employee occurring on County property, and any
loss, disappearance, destruction, misuse, or theft of County
property, monies or securities entrusted to Contractor.
Contractor also shall promptly notify County of any third party
claim or suit filed against Contractor or any of its SubContractors which arises from or relates to this Agreement,
and could result in the filing of a claim or lawsuit against
Contractor and/or County.

Additional Insured Status and Scope of Coverage

The County of Los Angeles, its Special Districts, Elected Officials,
Officers, Agents, Employees and Volunteers (collectively County
and its Agents) shall be provided additional insured status under
Contractor's General Liability policy with respect to liability arising
out of Contractor's ongoing and completed operations performed
on behalf of the County. County and its Agents additional insured
status shall apply with respect to liability and defense of suits
arising out of the Contractor's acts or omissions, whether such
liability is attributable to the Contractor or to the County. The full
policy limits and scope of protection also shall apply to the County
and its Agents as an additional insured, even if they exceed the
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County's minimum Required Insurance specifications herein. Use
of an automatic additional insured endorsement form is
acceptable providing it satisfies the Required Insurance
provisions herein.
8.22.3

Cancellation of or Changes in Insurance

Contractor shall provide County with, or Contractor's insurance
policies shall contain a provision that County shall receive, written
notice of cancellation or any change in Required Insurance,
including insurer, limits of coverage, term of coverage or policy
period. The written notice shall be provided to County at least ten
(10) calendar days in advance of cancellation for non-payment of
premium and thirty (30) calendar days in advance for any other
cancellation or policy change. Failure to provide written notice of
cancellation or any change in Required Insurance may constitute
a material breach of the Agreement, in the sole discretion of the
County, upon which the County may suspend or terminate this
Agreement.
8.22.4

Failure to Maintain Insurance

Contractor's failure to maintain or to provide acceptable evidence
that it maintains the Required Insurance shall constitute a material
breach of the Agreement, upon which County immediately may
withhold payments due to Contractor, and/or suspend or
terminate this Agreement. County, at its sole discretion, may
obtain damages from Contractor resulting from said breach.
Alternatively, the County may purchase the Required Insurance,
and without further notice to Contractor, deduct the premium cost
from sums due to Contractor or pursue Contractor
reimbursement.
8.22.5

Insurer Financial Ratings

Coverage shall be placed with insurers acceptable to the County
with A.M. Best ratings of not less than A:VII unless otherwise
approved by County.
8.22.6

Contractor's Insurance Shall Be Primary

Contractor's insurance policies, with respect to any claims related
to this Agreement, shall be primary with respect to all other
Any County
sources of coverage available to Contractor.
maintained insurance or self-insurance coverage shall be in
excess of and not contribute to any Contractor coverage.

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8.22.7

Waivers of Subrogation
To the fullest extent permitted by law, the Contractor hereby
waives its rights and its insurer(s)' rights of recovery against
County under all the Required Insurance for any loss arising from
or relating to this Agreement. The Contractor shall require its
insurers to execute any waiver of subrogation endorsements
which may be necessary to effect such waiver.

8.22.8 Sub-Contractor Insurance Coverage Requirements
Contractor shall include all subcontractors as insureds under
Contractor's own policies, or shall provide County with each
subcontractor's separate evidence of insurance coverage.
Contractor shall be responsible for verifying each subcontractor
complies with the Required Insurance provisions herein, and shall
require that each subcontractor name the County and Contractor
as additional insureds on the subcontractor's General Liability
policy. Contractor shall obtain County's prior review and approval
of any subcontractor request for modification of the Required
Insurance.
8.22.9

Deductibles and Self-Insured Retentions (SIRs)
Contractor's policies shall not obligate the County to pay any
portion of any Contractor deductible or SIR. The County retains
the right to require Contractor to reduce or eliminate policy
deductibles and SIRs as respects the County, or to provide a
bond guaranteeing Contractor's payment of all deductibles and
SIRs, including all related claims investigation , administration and
defense expenses. Such bond shall be executed by a corporate
surety licensed to transact business in the State of California.

8.22.10 Claims Made Coverage
If any part of the Required Insurance is written on a claims made
basis, any policy retroactive date shall precede the effective date
of this Agreement. Contractor understands and agrees it shall
maintain such coverage for a period of not less than three (3)
years following Agreement expiration, termination or cancellation.
8.22.11 Application of Excess Liability Coverage
Contractors may use a combination of primary, and excess
insurance policies which provide coverage as broad as the
underlying primary policies, to satisfy the Required Insurance
provisions.

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8.22.12 Separation of Insureds
All liability policies shall provide cross-liability coverage as would
be afforded by the standard ISO (Insurance Services Office, Inc.)
separation of insureds provision with no insured versus insured
exclusions or limitations.
8.22.13 Alternative Risk Financing Programs
The County reserves the right to review, and then approve,
Contractor use of self-insurance, risk. retention groups, risk
purchasing groups, pooling arrangements and captive insurance
to satisfy the Required Insurance provisions. The County and its
Agents shall be designated as an Additional Covered Party under
any approved program.
The County acknowledges that
Contractor is a public entity member of a liability risk sharing pool
called the Central San Joaquin Valley Risk Management Authority
(RMA), a Joint Powers Authority formed pursuant to California
Government Code Section 6500 et seq. The County agrees that
self-insurance with the RMA satisfies all insurance requirements
within this Agreement.
8.22.14 County Review and Approval of Insurance Requirements
The County reserves the right to review and adjust the Required
Insurance provisions, conditioned upon County's determination of
changes in risk exposures.
8.23

INSURANCE COVERAGE
8.23.1 Commercial General Liability insurance (providing scope of
coverage equivalent to ISO policy form CG 00 01), naming County
and its Agents as an additional insured, with limits of not less than:
General Aggregate:

$10 million

Products/Completed Operations Aggregate:

$5 million

Personal and Advertising Injury:

$5 million

Each Occurrence:

$5 million

8.23.2 Automobile Liability insurance (providing scope of coverage
equivalent to ISO policy form CA 00 01) with limits of not less than
$1 million for bodily injury and property damage, in combined or
equivalent split limits, for each single accident. Insurance shall
cover liability arising out of Contractor's use of autos pursuant to
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this Agreement, including owned, leased, hired, and/or non-owned
autos, as each may be applicable.
8.23.3 Workers Compensation and Employers' Liability insurance or
qualified self-insurance satisfying statutory requirements, which
includes Employers' Liability coverage with limits of not less than $1
million per accident. If Contractor will provide leased employees,
or, is an employee leasing or temporary staffing firm or a
professional employer organization (PEO), coverage also shall
include an Alternate Employer Endorsement (providing scope of
coverage equivalent to ISO policy form WC 00 03 01 A) naming the
County as the Alternate Employer, and the endorsement form shall
be modified to provide that County will receive not less than thirty
(30) calendar days advance written notice of cancellation of this
coverage provIsion.
If applicable to Contractor's operations,
coverage also shall be arranged to satisfy the requirements of any
federal workers or workmen's compensation law or any federal
occupational disease law.
8.23.4 Sexual Misconduct Liability insurance covering actual or alleged
claims for sexual misconduct and/or molestation with limits of not
less than $2 million per claim and $5 million aggregate, and claims
for negligent employment, investigation, supervision, training or
retention of, or failure to report to proper authorities, a person(s)
who committed any act of abuse, molestation, harassment,
mistreatment or maltreatment of a sexual nature.
8.23.5 Law Enforcement Professional Liability insurance covering
Contractor's liability arising from or related to this Agreement, with
limits of not less than $2 million per claim and $5 million aggregate.
Further, Contractor understands and agrees it shall maintain such
coverage for a period of not less than three (3) years following this
Agreement's expiration, termination or cancellation.
8.23.6 Professional Liability/Errors and Omissions insurance covering
Contractor's liability arising from or related to this Agreement, with
limits of not less than $2 million per claim and $5 million aggregate.
Further, Contractor understands and agrees it shall maintain such
coverage for a period of not less than three (3) years following this
Agreement's expiration, termination or cancellation.
8.23.7 Employment Practices Liability insurance covering Contractor's
liability arising from or related to this Agreement, with limits of not
less than $2 million per claim and $5 million aggregate. Further,
Contractor understands and agrees it shall maintain such coverage
for a period of not less than three (3) years following this
Agreement's expiration, termination or cancellation.
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8.24

LIQUIDATED DAMAGES

8.24.1 If, in the judgment of the Department, the Contractor is deemed to
be non-compliant with the terms and obligations assumed hereby,
the Department, at his/her option, in addition to, or in lieu of, other
remedies provided herein, may withhold the entire monthly
payment or deduct pro rata from the Contractor's invoice for work
not performed. A description of the work not performed and the
amount to be withheld or deducted from payments to the Contractor
from the County, will be forwarded to the Contractor by the
Department, in a written notice describing the reasons for said
action. However, prior to the initiation of any action intended to
withhold funds pursuant to this Paragraph, the County Project
Manager and the Contractor Project Manager shall meet and confer
regarding any non-compliance issues. Only upon the determination
by the County that the non-compliance cannot or will not be
corrected may the provisions of this Paragraph be invoked.
8.24.2 If the Department determines that there are deficiencies in the
performance of this Agreement that the Department deems are
correctable by the Contractor over a certain time span, the
Department will provide a written notice to the Contractor to correct
the deficiency within specified time frames. Should the Contractor
fail to correct deficiencies within said time frame, the Department
may: (a) Deduct from the Contractor's payment, pro rata, those
applicable portions; and/or (b) Deduct liquidated damages. The
parties agree that it will be impracticable or extremely difficult to fix
the extent of actual damages resulting from the failure of the
Contractor to correct a deficiency within the specified time frame.
The parties hereby agree that under the current circumstances a
reasonable estimate of such damages is One Hundred Dollars
($100) per day per infraction, and that the Contractor shall be liable
to the County for liquidated damages in said amount. Said amount
shall be deducted from the County's payment to the Contractor;
and/or (c) Upon giving five (5) Business Days notice to the
Contractor for failure to correct the deficiencies, the County may
correct any and all deficiencies and the total costs incurred by the
County for completion of the work by an alternate source, whether it
be County forces or separate private contractor, will be deducted
and forfeited from the payment to the Contractor from the County,
as determined by the County.
8.24.3 The action noted in Paragraph 8.24.2 shall not be construed as a
penalty, but as adjustment of payment to the Contractor to recover
the County cost due to the failure of the Contractor to complete or
comply with the provisions of this Agreement.
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8.24.4 This Paragraph shall not, in any manner, restrict or limit the
County's right to damages for any breach of this Agreement
provided by law or as specified in Paragraph 8.24.2, and shall not,
in any manner, restrict or limit the County's right to terminate this
Agreement as agreed to herein.
8.25

NONDISCRIMINATION AND AFFIRMATIVE ACTION

8.25.1

The Contractor certifies and agrees that all persons employed by it,
its affiliates, subsidiaries, or holding companies are and shall be
treated equally without regard to or because of race, color, religion,
ancestry, national origin, sex, age, physical or mental disability,
marital status, or political affiliation, in compliance with all
applicable Federal and State anti-discrimination laws and
regulations.

8.25.2

The Contractor shall take affirmative action to ensure that
applicants are employed, and that employees are treated during
employment, without regard to race, color, religion, ancestry,
national origin, sex, age, physical or mental disability, marital
status, or political affiliation, in compliance with all applicable
Federal and State anti-discrimination laws and regulations. Such
action shall include, but is not limited to: employment, upgrading,
demotion, transfer, recruitment or recruitment advertising, layoff or
termination, rates of payor other forms of compensation, and
selection for training, including apprenticeship.

8.25.3

The Contractor certifies and agrees that it will deal with its
subcontractors, bidders, or vendors without regard to or because of
race, color, religion, ancestry, national origin, sex, age, physical or
mental disability, marital status, or political affiliation.

8.25.4

The Contractor certifies and agrees that it, its affiliates,
subsidiaries, or holding companies shall comply with all applicable
Federal and State laws and regulations to the end that no person
shall, on the grounds of race, color, religion, ancestry, national
origin, sex, age, physical or mental disability, marital status, or
political affiliation, be excluded from participation in, be denied the
benefits of, or be otherwise subjected to discrimination under this
Agreement or under any project, program, or activity supported by
this Agreement.

8.25.5

The Contractor shall allow County representatives access to the
Contractor's employment records during regular business hours to
verify compliance with the provisions of this Paragraph 8.25 when
so requested by the County.
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8.26

8.25.6

If the County finds that any provisions of this Paragraph 8.25 have
been violated, such violation shall constitute a material breach of
this Agreement upon which the County may terminate or suspend
this Agreement. While the County reserves the right to determine
independently that the anti-discrimination provisions of this
Agreement have been violated, in addition, a determination by the
California Fair Employment and Housing Commission or the
Federal Equal Employment Opportunity Commission that the
Contractor has violated Federal or State anti-discrimination laws
or regulations shall constitute a finding by the County that the
Contractor has violated the anti-discrimination provisions of this
Agreement.

8.25.7

The parties agree that in the event the Contractor violates any of
the anti-discrimination provisions of this Agreement, the County
shall, at its sole option, be entitled to the sum of Five Hundred
Dollars ($500) for each such violation pursuant to California Civil
Code Section 1671 as liquidated damages in lieu of terminating or
suspending this Agreement.

NON EXCLUSIVITY
Nothing herein is intended nor shall be construed as creating any exclusive
arrangement with the Contractor for the County's purchase of community
correctional facility services. This Agreement shall not restrict the County or
the Department from acquiring similar, equal, and/or like services from other
entities or sources.

8.27

NOTICE OF DELAYS
Except as otherwise provided under this Agreement, when either party has
knowledge that any actual or potential situation is delaying or threatens to
delay the timely performance of this Agreement, that party shall, within one
(1) Business Day, give notice thereof, including all relevant information with
respect thereto, to the other party.

8.28

NOTICE OF DISPUTES
The Contractor shall bring to the attention of the County Project Manager
and/or County Project Director any dispute between the County and the
Contractor regarding the performance of services as stated in this
Agreement. If the County Project Manager or County Project Director is not
able to resolve the dispute, the Sheriff and the Taft City Manager shall
resolve it.

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8.29

NOTICE TO EMPLOYEES REGARDING THE FEDERAL EARNED
INCOME CREDIT
The Contractor shall notify its employees, and shall require each
subcontractor to notify its employees, that they may be eligible for the
Federal Earned Income Credit under the federal income tax laws. Such
notice shall be provided in accordance with the requirements set forth in
Internal Revenue Service Notice No.1 015.

8.30

NOTICES
All notices or demands required or permitted to be given or made under this
Agreement shall be in writing and shall be hand delivered with signed
receipt or mailed by first-class registered or certified mail, postage prepaid,
addressed to the County Project Director or Contractor Project Director, as
the case may be, at the addresses set forth in Paragraph 6.0,
Administration of Agreement - County, and Paragraph 7.0, Administration
of Agreement - Contractor. Addresses may be changed by either party
giving ten (10) calendar days prior written notice thereof to the other party.
The County Project Director shall have the authority to issue all notices or
demands required or permitted by the County under this Agreement.

8.31

PROHIBITION AGAINST INDUCEMENT OR PERSUASION
Notwithstanding the above, the Contractor and the County agree that,
during the term of this Agreement and for a period of one year thereafter,
neither party shall in any way intentionally induce or persuade any
employee of one party to become an employee or agent of the other party.
No bar exists against any hiring action initiated through a public
announcement.

8.32

PUBLIC RECORDS ACT
8.32.1

Any documents submitted by the Contractor; all information
obtained in connection with the County's right to audit and inspect
the Contractor's documents, books, and accounting records
and
pursuant
to
Paragraph
8.33,
Record
Retention
Inspection/Audit Settlement, of this Agreement become the
exclusive property of the County. All such documents become a
matter of public record and shall be regarded as public records.
Exceptions will be those elements in the California Government
Code Section 6250 et seq. (Public Records Act) and which are
marked "trade secret", "confidential", or "proprietary". The County
shall not in any way be liable or responsible for the disclosure of
any such records including, without limitation, those so marked, if
disclosure is required by law, or by an order issued by a court of
competent jurisdiction.
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8.32.2

8.33

In the event the County is required to defend an action on a Public
Records Act request for any of the aforementioned documents,
information, books, records, and/or contents of a proposal marked
"trade secret", "confidential", or "proprietary", the Contractor agrees
to defend and indemnify the County from all costs and expenses,
including reasonable attorney's fees, in action or liability arising
under the Public Records Act.

RECORD RETENTION AND INSPECTION/AUDIT SETTLEMENT

The Contractor shall maintain accurate and complete financial records of its
activities and operations relating to this Agreement in accordance with
generally accepted accounting principles. The Contractor shall also
maintain accurate and complete employment and other records relating to
its performance of this Agreement. The Contractor agrees that the County,
or its authorized representatives, shall have access to and the right to
examine, audit, excerpt, copy, or transcribe any pertinent transaction,
activity, or record relating to this Agreement. All such material, including,
but not limited to, all financial records, bank statements, cancelled checks
or other proof of payment, timecards, sign-in/sign-out sheets and other time
and employment records, and proprietary data and information, shall be
kept and maintained by the Contractor and shall be made available to the
County during the term of this Agreement and for a period of five (5) years
thereafter unless the County's written permission is given to dispose of any
such material prior to such time.
8.33.1

In the event that an audit of the Contractor is conducted specifically
regarding this Agreement by any Federal or State auditor, or by
any auditor or accountant employed by the Contractor or
otherwise, then the Contractor shall file a copy of such audit report
with the County's Auditor-Controller within thirty (30) calendar days
of the Contractor's receipt thereof, unless otherwise provided by
applicable Federal or State law or under this Agreement. Subject
to applicable law, the County shall make a reasonable effort to
maintain the confidentiality of such audit report(s).

8.33.2

Failure on the part of the Contractor to comply with any of the
provisions of this Paragraph 8.33 shall constitute a material breach
of this Agreement upon which the County may terminate or
suspend this Agreement.

8.33.3

If, at any time during the term of this Agreement or within five (5)
years after the expiration or termination of this Agreement,
representatives of the County conduct an audit of the Contractor
regarding the work performed under this Agreement, and if such
audit finds that the County's dollar liability for any such work is less
than payments made by the County to the Contractor, then the

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difference shall be either: a) repaid by the Contractor to the County
by cash payment upon demand or b) at the sole option of the
County's Auditor-Controller, deducted from any amounts due to the
Contractor from the County, whether under this Agreement or
otherwise. If such audit finds that the County's dollar liability for
such work is more than the payments made by the County to the
Contractor, then the difference shall be paid to the Contractor by
the County by cash payment, provided that in no event shall the
County's maximum obligation for this Agreement exceed the funds
appropriated by the County for the purpose of this Agreement.

8.34

RECYCLED BOND PAPER
Consistent with the County Board of Supervisor's policy to reduce the
amount of solid waste deposited at the County landfills, the Contractor
agrees to use recycled-content paper to the maximum extent possible on
this Agreement.

8.35

SUBCONTRACTING
8.35.1

The requirements of this Agreement may not be subcontracted by
the Contractor without the advance approval of the County. Any
attempt by the Contractor to subcontract without the prior consent
of the County may be deemed a material breach of this
Agreement.

8.35.2

If the Contractor desires to subcontract, the Contractor shall provide
the following information promptly at the County's request:
•

A description of the work to be performed by the subcontractor;

•

A draft copy of the proposed subcontract; and

•

Other pertinent information and/or certifications requested by
the County.

8.35.3

The Contractor shall indemnify and hold the County harmless with
respect to the activities of each and every subcontractor in the
same manner and to the same degree as if such subcontractor(s)
were the Contractor employees.

8.35.4

The Contractor shall remain fully responsible for all performances
required of it under this Agreement, including those that the
Contractor has determined to subcontract, notwithstanding the
County's approval of the Contractor's proposed subcontract.

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8.36

8.35.5

The County's consent to subcontract shall not waive the County's
right to prior and continuing approval of any and all personnel,
including subcontractor employees, providing services under this
Agreement.
The Contractor is responsible to notify its
subcontractors of this County right.

8.35.6

The County Project Director is authorized to act for and on behalf
of the County with respect to approval of any subcontract and
subcontractor employees. After approval of the subcontract by the
County, Contractor shall forward a fully executed subcontract to the
County for their files.

8.35.7

The Contractor shall be solely liable and responsible for all
payments or other compensation to all subcontractors and their
officers, employees, agents, and successors in interest arising
through services performed hereunder, notwithstanding the
County's consent to subcontract.

8.35.8

The Contractor shall obtain certificates of insurance, which
establish that the subcontractor maintains all the programs of
insurance required by the County from each approved
subcontractor. The Contractor shall ensure delivery of all such
documents to the County Project Director before any subcontractor
employee may perform any work hereunder.

TERMINATION FOR BREACH OF WARRANTY TO MAINTAIN
COMPLIANCE WITH COUNTY'S CHILD SUPPORT COMPLIANCE
PROGRAM
Failure of the Contractor to maintain compliance with the requirements set
forth in Paragraph 8.13, Contractor's Warranty of Adherence to County's
Child Support Compliance Program, of this Agreement shall constitute
default under this Agreement. Without limiting the rights and remedies
available to the County under any other provision of this Agreement, failure
of the Contractor to cure such default within ninety (90) calendar days of
written notice shall be grounds upon which the County may terminate this
Agreement pursuant to Paragraph 8.38, Termination for Default, of this
Agreement and pursue debarment of the Contractor, pursuant to County
Code Chapter 2.202.

8.37

TERMINATION FOR CONVENIENCE
8.37.1

This Agreement may be terminated, in whole or in part, by either
the County or the Contractor, from time to time, when such
termination is deemed to be in the best interest of the terminating
party. Termination of this Agreement shall be effected by notice of
termination to the other party specifying the extent to which

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performance of work is terminated and the date upon which such
termination becomes effective.
The date upon which such
termination becomes effective shall be no less than ninety (90)
calendar days after the notice of termination is sent.
8.37.2

8.37.3

8.38

After receipt of a notice of termination and except as otherwise
directed by the County, the Contractor shall:
•

Stop work under this Agreement on the date and to the extent
specified in such notice, and

•

Complete performance of such part of the work as shall not
have been terminated by such notice.

All material including books, records, documents, or other evidence
bearing on the costs and expenses of the Contractor under this
Agreement shall be maintained by the Contractor in accordance
with Paragraph 8.33, Record Retention and Inspection/Audit
Settlement, of this Agreement.

TERMINATION FOR DEFAULT

8.38.1

8.38.2

The County may, by written notice to the Contractor, terminate the
whole or any part of this Agreement, if, in the judgment of County's
Project Director:
•

Contractor has materially breached this Agreement; or

•

Contractor fails to timely provide and/or satisfactorily perform
any task, deliverable, service, or other work required either
under this Agreement; or

•

Contractor fails to demonstrate a high probability of timely
fulfillment of performance requirements under this Agreement,
or of any obligations of this Agreement and in either case, fails
to demonstrate convincing progress toward a cure within five
(5) Business Days (or such longer period as the County may
authorize in writing) after receipt of written notice from the
County specifying such failure.

If, after the County has given notice of termination under the
provisions of this Paragraph 8.38, it is determined by the County
that the Contractor was not in default under the provisions of this
Paragraph 8.38, or that the default was excusable, the rights and
obligations of the parties shall be the same as if the notice of
termination had been issued pursuant to Paragraph 8.37,
Termination for Convenience, of this Agreement.

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8.38.3

8.39

8.40

The rights and remedies of the County provided in this Paragraph
8.38 shall not be exclusive and are in addition to any other rights
and remedies provided by law or under this Agreement.

TERMINATION FOR IMPROPER CONSIDERATION

8.39.1

The County may, by written notice to the Contractor, immediately
terminate the right of the Contractor to proceed under this
Agreement if it is found that consideration, in any form, was offered
or given by the Contractor, either directly or through an
intermediary, to any County officer, employee, or agent with the
intent of securing this Agreement or securing favorable treatment
with respect to the award, amendment, or extension of this
Agreement or the making of any determinations with respect to the
Contractor's performance pursuant to this Agreement. In the event
of such termination, the County shall be entitled to pursue the
same remedies against the Contractor as it could pursue in the
event of default by the Contractor.

8.39.2

The Contractor shall immediately report any attempt by a County
officer or employee to solicit· such improper consideration. The
report shall be made either to the County manager charged with
the supervision of the employee or to the County AuditorController's Employee Fraud Hotline at (800) 544-6861.

8.39.3

Among other items, such improper consideration may take the
form of cash, discounts, service, the provision of travel or
entertainment, or tangible gifts.

TERMINATION FOR INSOLVENCY

8.40.1

The County may terminate this Agreement forthwith in the event of
the occurrence of any of the following:
•

Insolvency of the Contractor. The Contractor shall be deemed
to be insolvent if it has ceased to pay its debts for at least sixty
(60) calendar days in the ordinary course of business or cannot
pay its debts as they become due, whether or not a petition has
been filed under the Federal Bankruptcy Code and whether or
not the Contractor is insolvent within the meaning of the
Federal Bankruptcy Code;

•

The filing of a voluntary or involuntary petition regarding the
Contractor under the Federal Bankruptcy Code;

•

The appointment of a Receiver or Trustee for the Contractor; or
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•
8.40.2

8.41

The execution by the Contractor of a general assignment for
the benefit of creditors.

The rights and remedies of the County provided in this Paragraph
8.40 shall not be exclusive and are in addition to any other rights
and remedies provided by law or under this Agreement.

TERMINATION
ORDINANCE

FOR

NON·ADHERENCE OF COUNTY LOBBYIST

The Contractor, and each County Lobbyist or County Lobbying firm as
defined in County Code Section 2.160.010 retained by the Contractor, shall
fully comply with the County's Lobbyist Ordinance, County Code Chapter
2.160. Failure on the part of the Contractor or any County Lobbyist or
County Lobbying firm retained by the Contractor to fully comply with the
County's Lobbyist Ordinance shall constitute a material breach of this
Agreement, upon which the County may in its sole discretion, immediately
terminate or suspend this Agreement.

8.42

VALIDITY
If any provision of this Agreement or the application thereof to any person or
circumstance is held invalid, the remainder of this Agreement and the
application of such provision to other persons or circumstances shall not be
affected thereby.

8.43

WAIVER
No waiver by the County of any breach of any provision of this Agreement
shall constitute a waiver of any other breach or of such provision. Failure of
the County to enforce at any time, or from time to time, any provision of this
Agreement shall not be construed as a waiver thereof. The rights and
remedies set forth in this Paragraph 8.43 shall not be exclusive and are in
addition to any other rights and remedies provided by law or under this
Agreement.

8.44

WARRANTY AGAINST CONTINGENT FEES
8.44.1

The Contractor warrants that no person or selling agency has been
employed or retained to solicit or secure this Agreement upon any
Agreement or understanding for a commission, percentage,
brokerage, or contingent fee, excepting bona fide employees or
bona fide established commercial or selling agencies maintained
by the Contractor for the purpose of securing business.

8.44.2

For breach of this warranty, the County shall have the right to
terminate this Agreement and, at its sole discretion, deduct from
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the Agreement price or consideration, or otherwise recover, the full
amount of such commission, percentage, brokerage, or contingent
fee.
8.45

WARRANTY OF COMPLIANCE WITH
PROPERTY TAX REDUCTION PROGRAM

COUNTY'S

DEFAULTED

8.45.1 Contractor acknowledges that County has established a goal of
ensuring that all individuals and businesses that benefit financially
from County through contract are current in paying their property
tax obligations (secured and unsecured roll) in order to mitigate the
economic burden otherwise imposed upon County and its
taxpayers.
8.45.2 Unless Contractor qualifies for an exemption or exclusion,
Contractor warrants and certifies that to the best of its knowledge it
is now in compliance, and during the term of this Agreement will
maintain compliance, with Los Angeles County Code Chapter
2.206.
8.46

TERMINATION FOR BREACH OF WARRANTY TO MAINTAIN
COMPLIANCE WITH COUNTY'S DEFAULTED PROPERTY TAX
REDUCTION PROGRAM
Failure of Contractor to maintain compliance with the requirements set
forth in Paragraph 8.45, Warranty of Compliance with County's Defaulted
Property Tax Reduction Program, of this Agreement shall constitute
default under this Agreement. Without limiting the rights and remedies
available to County under any other provision of this Agreement, failure of
Contractor to cure such default within ten (10) calendar days of notice
shall be grounds upon which County may terminate this Agreement and/or
pursue debarment of Contractor, pursuant to County Code Chapter 2.206.

8.47

CONTRACTOR'S OBLIGATIONS AS A "BUSINESS ASSOCIATE"
UNDER HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY
ACT OF 1996 (HIPAA) AND THE HEALTH INFORMATION
TECHNOLOGY FOR ECONOMIC AND CLINICAL HEALTH ACT
(HITECH)
The County is subject to the Administrative Simplification requirements of
the Health Insurance Portability and Accountability Act of 1996 (HIPAA).
Under Vlis Agreement, the Contractor provides services to the County and
the Contractor receives, has access to, and/or creates Protected Health
Information as defined in Exhibit D in order to provide those services. The
County and the Contractor therefore agree to the terms of Exhibit D,
Contractor's Obligations As a "Business Associate" Under Health
Insurance Portability and Accountability Act of 1996 (HIPAA) and the

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Health Information Technology for Economic and Clinical Health Act
(HITECH), of this Agreement.

8.48

PATENT, COPYRIGHT, AND TRADE SECRET INDEMNIFICATION
8.48.1 The Contractor shall indemnify, hold harmless and defend County
from and against any and all liability, damages, costs, and
expenses, including, but not limited to, defense costs and attorneys'
fees, for or by reason of any actual or alleged infringement of any
third party's patent or copyright, or any actual or alleged
unauthorized trade secret disclosure, arising from or related to the
operation and utilization of the Contracto(s work under this
Agreement.
County shall inform the Contractor as soon as
practicable of any claim or action alleging such infringement or
unauthorized disclosure, and shall support the Contractor's defense
and settlement thereof.
8.48.2In the event any equipment, part thereof, or software product
becomes the subject of any complaint, claim, or proceeding
alleging infringement or unauthorized disclosure, such that
County's continued use of such item is formally restrained,
enjoined, or subjected to a risk of damages, the Contractor, at its
sole expense, and providing that County's continued use of the
system is not materially impeded, shall either:
•

Procure for County all rights to continued use of the
questioned equipment, part, or software product; or

•

Replace the questioned equipment, part, or software product
with a non-questioned item; or

•

Modify the questioned equipment, part, or software so that it is
free of claims.

8.48.3 The Contractor shall have no liability if the alleged infringement or
unauthorized disclosure is based upon a use of the questioned
product, either alone or in combination with other items not supplied
by the Contractor, in a manner for which the questioned product
was not designed nor intended.

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AGREEMENT
FOR
COMMUNITY CORRECTIONAL FACILITY SERVICES
IN WITNESS WHEREOF, Contractor has caused this Agreement to be executed
by its duly authorized representative, and the County of Los Angeles, by order of its
Board of Supervisors, has caused this Agreement to be executed on its behalf by the
Chief Executive Officer, on the dates written below.
CITY OF TAFT
By ____________________________
Randy Miller, Mayor
Date: _ _ _ _ _ _ _ _ _ _ _ __

COUNTY OF LOS ANGELES
By ____________________________
William T Fujioka
Chief Executive Officer

Date:

----------------------------

APPROVED AS TO FORM:
JOHN F. KRATTLI
County Counsel

APPROVED AS TO FORM:
DAVID A. PRENTICE
City Attorney

By _______~--Deputy County Counsel

By _______________________

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EXHIBIT A

STATEMENT OF WORK
Unless otherwise defined herein, all capitalized words and terms used herein shall have
the meaning set forth in Paragraph 2.0, Definitions, of the Agreement, unless otherwise
apparent from the context in which they are used.

A.

GENERAL SCOPE OF SERVICES

1.

Contractor shall provide housing, sustenance, supervision, education, inmate
programs, and other services and accommodations to inmates provided by
County at the Taft Community Correctional Facility ("CCF"), located at 330
Commerce Way, Taft, California 92368.

2.

CCF shall operate as a Type III Adult Detention Facility to house an inmate
population not to exceed 560 inmates.

3.

Contractor shall provide and maintain adequate staffing to provide all required
services to inmates when such inmates are under the custody and control of
Contractor.

4.

Once the County transfers custody of an inmate, such inmate shall be the sole
responsibility of Contractor and shall be under the custody and control of
Contractor.

5.

Contractor shall ensure the secure custody, care, and safekeeping of all inmates.
Contractor shall be solely responsible for developing and implementing CCF
policies, procedures, rules, and regulations related to the secure custody, care,
and safekeeping of inmates.

6.

Contractor shall provide all services under this Agreement in accordance with all
federal, State, and local law, rules, regulations, policies, procedures, and
correctional standards, including but not limited to Title 15, Title 24, and all CCF
policies, procedures, rules, and regulations. County shall have no liability for
Contractor's failure to comply with such federal, State, and local rules,
regulations, policies, procedures, and correctional standards. County shall have
no liability resulting from any CCF policies, procedures, rules, and regulations
which are or may be later deemed to be non-compliant or in violation of any
federal, State, and local rules, regulations, policies, procedures, and correctional
standards. Contractor shall provide to County all CCF policies, procedures,
rules, and regulations immediately upon request by County. Contractor shall
immediately notify County in the event of any allegation, investigation, or finding
related to Contractor's non-compliance or violation of any federal, State, and
local rules, regulations, policies, procedures, and correctional standards.

7.

Contractor shall, at all times, remain in full compliance with the most recent
standards for the prevention, detection, response and monitoring of sexual abuse
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Statement of Work

EXHIBIT A
in adult prisons and jails (Prison Rape Elimination Act or "PREA"), as required by
the United States Department of Justice.
8.

Contractor shall provide housing, sustenance, supervision, education, inmate
programs, and other services and accommodations at the CCF solely to inmates
from the County during the term of this Agreement. Contractor shall not house
inmates or offenders from any other law enforcement agency or public or private
entity, nor utilize the CCF in any way for inmates or offenders from any other law
enforcement agency or public or private entity

9.

County shall have the right to audit, inspect, review, and examine the CCF facility
and its operations and programs, including all documents related thereto. Such
rights include but are not limited to site inspections, review of investigative
materials related to inmate incidents, and examination of documents related to
the care and treatment of inmates. At County's sole discretion, such audits,
inspections, reviews, and examinations may be conducted by County and/or its
agents at anytime with or without advance notice to Contractor.

B.

ORGANIZATION OF CCF

1.

A full-time Police Chief, reporting to the City Manager, shall serve as the Facility
Administrator and shall have overall responsibility for the administration, security,
and safety of the facility, staff, and inmates.

2.

CCF staff shall be deployed in accordance with the Minimum Staffing Plan,
attached as Exhibit C of this Agreement, to assist in administration and operation
of CCF.

3.

A Corrections Captain shall serve as the Facility Manager, who shall oversee the
overall administrative side of the CCF and report to the Chief of Police.

4.

A Corrections Captain shall serve as the Security Captain, who shall oversee all
aspects of security and the well-being of the inmates and report to the Facility
Manager.

5.

Corrections Lieutenants shall serve as Watch Commanders, with Corrections
Sergeants shall serve as Watch Commanders/Security and Escort (S/E) Officers.
The Corrections Lieutenants and Sergeants shall be responsible for the
management of all security functions, which includes the supervision of security
staff in maintaining a secure and safe facility for both staff and inmates.

C.

SECURITY AND CLASSIFICATION OF INMATES

1.

The security and classification level of inmates eligible for CCF participation are
limited to the following adult inmates sentenced to County jail:
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a.
b.
c.

Long-term offenders with no known pending court appearances
No serious medical or mental health needs
Low to medium security classification

D.

PROGRAM SERVICES

1.

The Sheriff of Los Angeles County has adopted a philosophy within the jails
known as Education Based Incarceration. It focuses on deterring and mitigating
crime by investing in inmates through education and rehabilitation and providing
dignity in the jails.

2.

Contractor shall provide and maintain inmate programs for inmates in keeping
with the spirit of Education Based Incarceration. Inmate programming shall be
sufficient to meet the minimum standards required by Title 15 and aimed at
reducing recidivism, increasing employability, and reunifying families.

3.

Inmate programs may include, but are not limited to, academic programs, life
skills programs, vocational and technical training programs, behavior modification
programs, religious and volunteer programs, recreation programs, and visitation
and family reunification programs.

4.

Contractor may provide credentialed instructors to provide classroom instruction
in General Educational Development ("GED") test preparation, basic education,
job-seeking skills, pre-release, and other areas related to employment.

5.

Work and vocational programs available to inmates may consist of
employmentlon-the-job training in food preparation, housekeeping, laundry
services, groundskeeper, and building maintenance. These opportunities will
include job assignments within the facility, as well as the off-site work crews.

6.

Religious services and counseling may be provided by local volunteer groups
and organizations.

7.

Recreation opportunities may include indoor and outdoor programs. The day
rooms in the living units are sized to provide adequate room for indoor
recreational activities. The proposed facility configuration also allows for outdoor
activities, such as volleyball, basketball, horseshoes, and resistance training in
accordance with Title 15 policies and procedures.

8.

Visiting privileges shall be granted to inmates in accordance with Title 15
requirements. A regular visitation schedule shall be established, with contact
visiting in a large indoor visitation area.

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E.

PROGRAM OPERATIONS

1.

Program operations shall be directed by the Police Chief, in compliance with all
applicable laws, rules, regulations, policies, procedures, and correctional
standards, as well as all CCF policies, procedures, rules, and regulations.

2.

Contractor shall develop a policy and procedure manual which describes local
regulations on procedures for intake, shakedown, head-count, inmate cell
housing, visiting, recreation, food services, medical services, disciplinary, inmate
appeal, inmate release, facility armory, emergency operations, and security
related operations. Particular attention shall be paid to procedures for searching
inmates returning from off-site work details.

3.

Contractor shall provide to County all CCF policies, procedures, rules, and
regulations related to program operations immediately upon request by County.

F.

STAFFING

1.

Contractor, through the Chief of Police, shall be solely responsible for the
recruitment, hiring, and training of the CCF staff.

2.

CCF staff shall meet CCF and CA POST staffing requirements and background
clearances.

3.

All persons providing security/custody at CCF shall be Correctional Officers, who
have completed the minimum standards for training of local correctional officers
established by CSA pursuant to California Penal Code section 6035.

4.

CCF staff shall have specific duties relating to the security of the facility and the
safety of the community, staff, and inmates.

5.

CCF staff shall supervise inmates at all times during inmate programming and
inmate activities and shall have direct visual observation of inmates at specified
times throughout their designated work day at the CCF.

6.

CCF staff, or persons trained pursuant to State of California, Corrections
Standards Authority ("CSA"), Standards and Training for Corrections ("STC")
program standards and guidelines, shall supervise, at all times, all inmates
assigned to Off Reservation Work Details ("ORWD") pursuant to Section P,
Inmate Work/Off Reservation Work Detail, of this Statement of Work.

7.

CCF staff recruitment shall follow the guidelines and standards for personnel
selection established by the CSA, as part of its STC program. Preferential
consideration shall be given to those individuals knowledgeable in the operation
of detention facilities or who have had training in specific aspects of jail
operations and management, custody procedures, and inmate supervision.

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8.

The City of Taft shall not discriminate on the basis of race, sex, age, religion or
otherwise unlawful characteristics, in its recruiting and hiring practices. Other
than prior experience, education and training in this field of work, specific
individual qualities on which employment will rely include: emotional maturity and
stability; satisfactory record as a law-abiding citizen; understanding of persons
under restraint; sound judgment; alertness; willingness to work assigned shifts;
normal or corrected vision and hearing; and sound medical physical condition.

G.

COMMUNICATION OPERATIONS

1.

The basic function of the communications system is to satisfy the immediate
information needs of the law enforcement agency in the course of its normal daily
activities and during emergencies. Emergencies place the greatest demands
upon the communications system and tests the capability of the system to fulfill
its functions. Measures and standards of performance are necessary to assess
the effectiveness with which any department, large or small, uses available
information technology in fulfillment of its missions. Operations are more efficient
and officer safety is enhanced when control booth officers, supervisors, and
fellow officers know the status of officers, their locations and the nature of cases.

2.

Contractor shall at all times maintain radio and other communication operations
in the CCF which are adequate and appropriate for the administration, security,
and safety of the facility, staff, and inmates.

3.

CCF radio operations shall be conducted in accordance with
Communications Commission procedures and guidelines.

H.

STAFF TRAINING

1.

Contractor shall develop and implement a training program for all custody staff
hired for the facility. The training program shall be in accordance with training
standards and guidelines developed by CSA and promulgated through the STC
program.

2.

Custody staff training shall be provided by various training facilities and/or
institutions. These programs shall certified by the CSA. In addition, basic first
aid training and CPR training shall be included as part of the training program.
Custody staff training shall focus on, but shall not be limited to:
•
•
•
•
•
•

Federal

Inmate supervision and disciplinary procedures
Security and emergency procedures
Inmate correctional programs
Movement and transportation of inmates
Inmate appeal
Inmate/staff relations
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•
•
•
•
•
•
•
•
•
•
•

Report writing
Inmate investigations
Legal responsibilities and liabilities
Defensive tactics
Fire and life safety
Collection, identification and preservation of evidence
Judicial prodders
Courtroom demeanor and testifying
PREA
Sexual harassment
Firearms

3.

The training program shall provide for separate levels of training corresponding
to the level of responsibility and authority of the staff positions. In addition,
continuing custody training programs and in-service programs will be provided to
update custodial managers and staff on recent legal developments, new
philosophy and procedures, and special issues.

I.

MEDICAL SERVICES

1.

Contractor shall provide all necessary medical care, both Routine Medical Care
and Non-Routine Medical Care.

2.

All medical care shall be provided in compliance with Title 15 requirements and
as other required by law.

3.

Contractor shall develop and implement CCF policies and procedures for the
provision of all medical care, including medical procedures for the dispensing of
medication.

4.

Contractor shall provide all Routine Medical Care for inmates either on-site at
CCF, or off-site as necessary. CCF shall contain an examination room, Nurse's
office, and secure storage for pharmaceutical and medical instruments.

5.

Routine Medical Care may be provided via contracted medical and dental
providers, provided that such Routine Medical Care is provided in accordance
with the minimum requirements set forth herein and the requirements of medical
and dental plans provided pursuant to agreements between Contractor and
contracted medical and dental provider{s).

6.

Contractor's Routine Medical Care shall include but shall not be limited to:
a.
b.
c.

Sick Call - 5 days per week
Emergency Sick Call/Triage - weekends
Inmate annual health history and physical examinations

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d.
e.
f.
g.
h.

Medication administration - generally twice per day, with medications
requiring more frequent administration provided as required
Licensed physician on-site a minimum of 12-16 hours per week, with
physician available on call 24 hours per day, seven days per week.
Registered Nurse on-site Monday through Friday for eight hours on a day
shift. All other shifts staffed with Licensed Vocational Nurses.
Dentist and dental assistant by appointment for the provision of routine
dental care, following medical consultation by the medical staff.
Temporary Housing Units shall be provided as separate facilities for viraltype illnesses requiring short-term isolation.

7.

Non-Routine Medical Care may be provided off-site by County approved medical
and dental providers located within the vicinity of the CCF. CCF procedures,
including transportation and custody of inmates, shall be developed and
implemented for handling Non-Routine Medical Care for inmates. All procedures
shall be made available to County immediately upon request.

8.

Contractor shall provide transportation to and from the medical or dental provider
facility for all inmates requiring Non-Routine Medical Care. In emergency, lifethreatening situations, transportation may be provided by ambulance. The
Contractor shall also provide supervision of the inmate while at the medical or
dental provider facility for treatment. The Contractor shall provide supervision
until such time as the inmate is transported back to the CCF or the County
assumes supervision of the inmate.

9.

If, either upon arrival from County or during incarceration, Contractor's medical
staff determines that an inmate (1) is not in a sufficient medical condition to be, or
remain to be, housed at CCF, or (2) has serious medical or mental health needs
which cannot be accommodated at CCF, then said inmate shall be returned to
County.

10.

The medical services required herein are based upon Title 15 standards. If the
standards change as a result of realignment, or through statute, then such
changes shall be discussed by County and Contractor. Any such modifications
to the requirements hereunder shall be in the form of a written Amendment in
accordance with Paragraph 8.1, Amendments, of the Agreement.

J.

FOOD SERVICES

1.

Contractor shall provide sustenance and food services to inmates at CCF, which
meet the minimum dietary requirements dictated by Title 15.

2.

Food shall be prepared, at CCF, under the direction of a Cook Supervisor, by
medically screened inmate food services workers.

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3.

Contractor shall arrange for the purchase of all necessary foods to comply with
the minimum dietary requirements dictated by Title 15.

4.

Inmate meals shall be prepared and served three (3) times within each 24 hour
period.

5.

Contractor shall provide meal planning, kitchen superviSion,
preparation, which may be provided by the Cook Supervisor.

6.

Necessary food storage and refrigeration space shall be provided, as well as an
adequately sized kitchen with required appliances.

7.

All food shall be prepared and stored in accordance with all State and local
codes.

K.

HOUSING AND HOUSEKEEPING SERVICES

1.

Contractor will provide dormitory style housing units for inmates.

2.

Dormitory areas shall contain both day rooms and sleeping space and shall meet
the requirements of Title 15 and Title 24.

3.

Contractor shall develop and implement a maintenance and housekeeping plan
to ensure the proper upkeep of the dormitories.

4.

All inmates shall be required to comply with procedures for maintaining their
living space.

5.

Contractor shall provide all bed linens and towels for use by inmates. A schedule
for the regular issuance of linens and towels shall be developed and maintained.

6.

Contractor shall develop, and provide to each inmate, an orientation manual to
educate new inmates on CCF policies and procedures. The manual shall
address housekeeping procedures, sick call/pill call procedures, and policies
regarding behavior and discipline, as well as daily routines and practices.

L.

INMATE CLOTHING

1.

Contractor shall provide all inmate clothing.

2.

Inmate clothing shall be similar to the type to that is provided by County.

3.

Inmate clothing shall be suitable to the climate and to specific work assignments,
as required.

and

meal

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4.

Contractor shall develop a plan, procedures, and a schedule for the exchange of
clean inmate clothing.

5.

Laundry services, including the repair of clothing, shall be provided at CCF by
resident work crews, which are supervised by a Corrections Officer.

M.

FINANCIAL MANAGEMENT OF FUNDS AND INTERNAL CONTROL

1.

Contractor shall establish and maintain sufficient accounting, internal control,
financial reporting, and administrative capacity to effectively administer the
services required under this Agreement.

2.

The Contractor's Fiscal Officer shall be responsible for accounting of all program
and facility costs, maintaining all financial records including inmate funds, and
serving as Contractor's liaison to County fiscal authorities. The Contractor's
Fiscal Officer shall be assisted by the Chief of Police.

3.

The Contractor's Fiscal Officer shall ensure that accounting and financial records
management practices meet generally accepted standards.

4.

In accordance with Paragraph 8.33, Record Retention and Inspection/Audit
Settlement, of the Agreement, County may conduct periodic audits of any and all
records relating to this Agreement. Such audits may be conducted by any State
or federal auditor or an outside accountant employed by County.

5.

When an inmate is transferred to Contractor from County, the balance of such
inmate's trust account shall also be transferred to Contractor. If the inmate is
transferred back to County or to another facility, the balance of the inmate's trust
account shall also be transferred. Such money transfers may be done by check
and accounted for by the Contractor's Fiscal Officer.

N.

FACILITY OPERATIONS

1.

Contractor shall provide and maintain a community correctional facility in
accordance with California Penal Code section 6250 et seq.

2.

Contractor shall provide and maintain CCF in accordance with all federal, State,
and local rules, regulations, policies, procedures, and correctional standards,
including but not limited to Title 15 and Title 24, and all CCF policies, procedures,
rules, and regulations.

3.

Contractor shall comply with and maintain all local permit requirements, all fire
clearances, and all other governmental approvals required to operate CCF.

4.

In the event Contractor fails to maintain at all times all required local and/or
governmental approvals or modifies or otherwise changes the locally required

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conditional use permit or any other discretionary or ministerial land use approval
regulating the size or manner in which CCF is used in a manner inconsistent with
the purpose of this Agreement or which otherwise substantially interferes with
Contractor's obligations to County, Contractor shall immediately provide notice to
the County Project Director. County may then, at its sole discretion, (1)
immediately terminate this Agreement pursuant to Paragraph 8.38, Termination
for Default, effective with the change or loss in conditional use permit or any
other discretionary or ministerial land use approval regulating the size or manner
in which CCF is used, (2) modify the terms and conditions of this Agreement in a
manner reasonably related to the change, and/or (3) require reasonable costs
incurred in the relocation of inmates housed at CCF to another correctional
facility.
5.

Prior to performing services under this Agreement, Contractor shall deliver to
County evidence of a full inspection of CCF by CSA and the corresponding
notice of compliance, which evidences the rated bed capacity of the CCF.

6.

Contractor shall perform ongoing inspections and tests of the CCF building
systems, including, but not limited to, all security, fire, and life-safety systems.

7.

Contractor shall maintain an emergency operations manual that identifies a plan
of action in the event of an emergency, such as labor strike, natural disaster, or
inmate unrest. The emergency operations procedures shall include mutual aide
agreements with surrounding law enforcement agencies.

8.

Contractor shall maintain compliance, in conjunction with the Kern County Fire
Department, State Fire Marshall, and Taft CCF policies and procedures, for
providing access to the facility for emergency vehicles.

O.

INMATE WORK/OFF RESERVATION WORK DETAIL·

1.

Inmates may be assigned to work assignments within and on the outside of the
security perimeter to assist the facility in its daily operations, educational
programs, and/or vocational programs. Inmates will be assigned through the unit
classification process. Inmate custody levels and inmate program needs shall be
used to determine inmate assignments at the facility.

2.

All work assignments shall be assigned and performed in accordance with Title
15 requirements or as otherwise required by law.

3.

Inmates may also be assigned to the Off Reservation Work Details ("ORWD"),
including but not limited to Taft Cemetery, Garage, City Hall, and Public Works
crews. Inmates assigned to ORWD shall be supervised in accordance with
Section F(6) above. Contractor shall be solely responsible for injuries sustained
and any and all workers compensation liability, if any, resulting from an inmate's
assignment to ORWD or other outside work detail.

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4.

Contractor shall be solely responsible for any inmate compensation associated
with any work assignment, including ORWD.

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EXHIBIT B

PRICE SCHEDULE

1.

Facility Per-Diem Rate
The facility per-diem rate shall be an all-inclusive daily flat rate for all housing,
sustenance, supervision, education, inmate programs, Routine Medical Care,
and other services and accommodations as required by this Agreement and
otherwise by law. Notwithstanding, the facility per-diem rate does not include
Non-Routine Medical Care Costs or Non-Routine Medical Custodial Costs.
MINIMUM INMATE BED SPACE

DAILY PER-DIEM RATE

512

$31,000*

*The above facility per-diem rate is based upon a capacity of 512 available
inmate beds per day. If, due to maintenance, emergency repairs, or any other
occurrence, the bed space made available by Contractor falls below the
minimum 512 beds, then the daily rate shall be calculated on the basis of an
inmate per-diem at $60.55 per available bed.

2.

Non-Routine Medical Custodial Costs
The flat hourly rate for transportation and custody supervision during NonRoutine Medical Care shall not exceed $49.13 per hour per custody staff
member performing services.

3.

Special Custodial Costs
The flat hourly rate for transportation and custody supervision of an inmate to any
destination previously approved by the County shall not exceed $49.13 per hour
per custody staff member performing services.

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MINIMUM STAFFING PLAN
512 Beds
1 Watch (2200-0600)
1 - Watch Commander (Lieutenant)
1 - Search & Escort Officer (Sgt.)
1 - Control "A" Officer
1 - Control liB" Officer
2 - A Deck Officers
2 - B Deck Officers
1 -LVN
2 Watch (0600 - 1400)
1 - Watch Commander (Lieutenant)
1 - Search & Escort Officer (Sgt.)
1 - Control "A" Officer
1 - Control liB" Officer
2 - A Deck Officers
2 - B Deck Officers
1 - RN or LVN, plus Physician Monday - Friday
2 - Teachers
1 - Facility Manager
1 - Security Captain
1 - Program Manager
1 - Laundry Officer
1 - Receiving and Releasing Officer
2 - Recreation Yard Officers
1 - Visiting Officer (Weekends)
3 Watch (1400-2200)
1 - Watch Commander (Lieutenant)
1 - Search & Escort Officer (Sgt)
1 - Control "A" Officer
1 - Control liB" Officer
2 - A Deck Officers
2 - B Deck Officers
1-LVN
1 - Laundry Officer
1 - Receiving and Releasing Officer
2 - Recreation Yard Officers

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260 Beds
1 Watch (2200-0600)
1 - Watch Commander (Lieutenant)
1 - Search & Escort Officer (Sgt.)
1 - Control "A" Officer
2 - A Deck Officers
1- LVN
2 Watch (0600 - 1400)
1 - Watch Commander (Lieutenant)
1 - Search & Escort Officer (Sgt)
1 - Control "A" Officer
2 - A Deck Officers
1 - RN or LVN, plus Physician Monday - Friday
2 - Teachers
1 - Facility Manager
1 - Security Captain
1 - Program Manager
1 - Laundry Officer
1 - Receiving and Releasing Officer
2 - Recreation Yard Officers
1 - Visiting Officer (Weekends)
3 Watch (1400-2200)
1 - Watch Commander (Lieutenant)
1 - Search & Escort Officer (Sgt)
1 - Control "A" Officer
2 - A Deck Officers
1- LVN
1 - Laundry Officer
1 - Receiving and Releasing Officer
2 - Recreation Yard Officers

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EXHIBIT D
AGREEMENT
CONTRACTOR'S OBLIGATIONS AS A
"BUSINESS ASSOCIATE" UNDER THE HEALTH INSURANCE
PORTABILITY AND ACCOUNTABILITY ACT OF 1996
AND THE HEALTH CARE INFORMATION TECHNOLOGY
FOR ECONOMIC AND CLINICAL HEALTH ACT
(BUSINESS ASSOCIATE AGREEMENT)

Under this Agreement, Contractor ("Business Associate") provides services ("Services")
to County ("Covered Entity") and Business Associate receives, has access to or creates
Protected Health Information in order to provide those Services.
Covered Entity is subject to the Administrative Simplification requirements of the Health
Insurance Portability and Accountability Act of 1996, Public Law 104-191 ("HIPAA"), and
regulations promulgated thereunder, including the Standards for Privacy of Individually
Identifiable Health Information ("Privacy Regulations") and the Health Insurance
Reform: Security Standards ("the Security Regulations") at 45 Code of Federal
Regulations (C.F.R.) Parts 160 and 164 (together, the "Privacy and Security
Regulations"). The Privacy and Security Regulations require Covered Entity to enter
into a contract with Business Associate ("Business Associate Agreement") in order to
mandate certain protections for the privacy and security of Protected Health Information,
and those Regulations prohibit the disclosure to or use of Protected Health Information
by Business Associate if such a contract is not in place.
Further, pursuant to the Health Information Technology for Economic and Clinical
Health Act, Public Law 111-005, title XIII and title IV of Division B, ("H ITECH Act"),
effective February 17, 2010, certain provisions of the HIPAA Privacy and Security
Regulations apply to Business Associates in the same manner as they apply to Covered
Entity and such provisions must be incorporated
into the Business Associate
Agreement.
This Business Associate Agreement and the following provisions are intended to protect
the privacy and provide for the security of Protected Health Information disclosed to or
used by Business Associate in compliance with HIPAA's Privacy and Security
Regulations and the HITECH Act, as they now exist or may hereafter be amended.
Therefore, the parties agree as follows:
DEFINITIONS

1.1

"Breach" has the same meaning as the term "breach" in 45 C.F.R. § 164.402.

1.2

"Disclose" and "Disclosure" mean, with respect to Protected Health Information,
the release, transfer, provision of access to, or divulging in any other manner of
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Protected Health Information outside Business Associate's internal operations or
to other than its employees.
1.3

"Electronic Health Record" has the same meaning as the term "electronic health
record" in the HITECH Act, 42 U.S.C. section 17921. Electronic Health Record
means an electronic record of health-related information on an individual that is
created, gathered, managed, and consulted by authorized health care clinicians
and staff.

1.4

"Electronic Media" has the same meaning as the term "electronic media" in 45
C.F.R. § 160.103. Electronic Media means (1) Electronic storage media
including memory devices in computers (hard drives) and any
removable/transportable digital memory medium, such as magnetic tape or disk,
optical disk, or digital memory card; or (2) Transmission media used to exchange
information already in electronic storage media. Transmission media include, for
example, the internet (wide-open), extranet (using internet technology to link a
business with information accessible only to collaborating parties), leased lines,
dial-up lines,
private networks, and the physical
movement of
removable/transportable electronic storage media.
Certain transmissions,
including of paper, via facsimile, and of voice, via telephone, are not considered
to be transmissions via electronic media, because the information being
exchanged did not exist in electronic form before the transmission. The term
"Electronic Media" draws no distinction between internal and external data, at
rest (that is, in storage) as well as during transmission.

1.5

"Electronic Protected Health Information" has the same meaning as the term
"electronic protected health information" in 45 C.F.R. § 160.103. Electronic
Protected Health Information means Protected Health Information that is (i)
transmitted by electronic media; (ii) maintained in electronic media.

1.6

"Individual" means the person who is the subject of Protected Health Information
and shall include a person who qualifies as a personal representative in
accordance with 45 C.F.R. § 164.502(g).

1.7

"Minimum Necessary" refers to the minimum necessary standard in 45 C.F.R. §
162.502 (b) as in effect or as amended.

1.8

"Privacy Rule" means the Standards for Privacy of Individually Identifiable Health
Information at 45 Code of Federal Regulations (C.F.R.) Parts 160 and 164, also
referred to as the Privacy Regulations.

1.9

"Protected Health Information" has the same meaning as the term "protected
health information" in 45 C.F.R. § 160.103, limited to the information created or
received by Business Associate from or on behalf of Covered Entity. Protected
Health Information includes information that (i) relates to the past, present or
future physical or mental health or condition of an Individual; the provision of

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EXHIBIT D

health care to an Individual, or the past, present or future payment for the
provision of health care to an Individual; (ii) identifies the Individual (or for which
there is a reasonable basis for believing that the information can be used to
identify the Individual); and (iii) is received by Business Associate from or on
behalf of Covered Entity, or is created by Business Associate, or is made
accessible to Business Associate by Covered Entity.
"Protected Health
Information" includes Electronic Health Information.
1.10

"Required By Law" means a mandate contained in law that compels an entity to
make a Use or Disclosure of Protected Health Information and that is enforceable
in a court of law. Required by law includes, but is not limited to, court orders and
court-ordered warrants; subpoenas or summons issued by a court, grand jury, a
governmental or tribal inspector general, or any administrative body authorized to
require the production of information; a civil or an authorized investigative
demand; Medicare conditions of partiCipation with respect to health care
providers participating in the program; and statutes or regulations that require the
production of information, including statutes or regulations that require such
information if payment is sought under a government program providing benefits.

1.11

"Security Incident" means the attempted or successful unauthorized access, Use,
Disclosure, modification, or destruction of information in, or interference with
system operations of, an Information System which contains Electronic Protected
Health Information. However, Security Incident does not include attempts to
access an Information System when those attempts are not reasonably
considered by Business Associate to constitute an actual threat to the
Information System.

1.12

"Security Rule" means the Security Standards for the Protection of Electronic
Health Information also referred to as the Security Regulations at 45 Code of
Federal Regulations (C.F.R.) Part 160 and 164.

1.13

"Services" has the same meaning as in the body of this Agreement.

1.14

"Unsecured Protected Health Information" has the same meaning as the term
"unsecured protected health information" in 45 C.F.R. § 164.402.

1.15

"Use" or "Uses" mean, with respect to Protected Health Information, the sharing,
employment, application, utilization, examination or analysis of such Information
within Business Associate's internal operations.

1.16

Terms used, but not otherwise defined in this Business Associate Agreement
shall have the same meaning as those terms in the HIPAA Regulations and
HITECH Act.

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OBLIGATIONS OF BUSINESS ASSOCIATE

2.1

Permitted Uses and Disclosures of Protected Health Information.
Associate:

Business

(a) shall Use and Disclose Protected Health Information only as necessary to
perform the Services, and as provided in Sections 2.4, 2.5, 2.6, 2.7, 2.8, 2.9,
2.10, 4.3 and 5.2 of this Agreement;
(b) shall Disclose Protected Health Information to Covered Entity upon request;
(c) may, as necessary for the proper management and administration of its
business or to carry out its legal responsibilities:
(i) Use Protected Health Information; and
(ii) Disclose Protected Health Information if the Disclosure is Required by
Law.
Business Associate shall not Use or Disclose Protected Health Information for
any other purpose or in any manner that would constitute a violation of the
Privacy Regulations or the HITECH Act if so Used or Disclosed by Covered
Entity.
2.2

Prohibited Uses and Disclosures of Protected Health Information.
Associate:

Business

(a) shall not Use or Disclose Protected Health Information for fundraising or
marketing purposes.
(b) shall not disclose Protected Health Information to a health plan for payment
relates.

or health c

(c) shall not directly or indirectly receive payment in exchange for Protected
Health Information, except with the prior written consent of Covered Entity
and as permitted by the HITECH Act. This prohibition shall not affect
payment by Covered Entity to Business Associate. Covered Entity shall not
provide such written consent except upon express approval of the
departmental privacy officer and only to the extent permitted by law, including
HIPAA and the HITECH Act.
2.3

Adequate Safeguards for Protected Health Information. Business Associate:
(a) shall implement and maintain appropriate safeguards to prevent the Use or
Disclosure of Protected Health Information in any manner other than as
permitted by this Business Associate Agreement. Business Associate agrees

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to limit the Use and Disclosure of Protected Health Information to the
Minimum Necessary in accordance with the Privacy Regulation's minimum
necessary standard as in effect or as amended.
(b) as to Electronic Protected Health Information, shall implement and maintain
administrative, physical, and technical safeguards that reasonably and
appropriately protect the confidentiality, integrity, and availability of Electronic
Protected Health Information; effective February 17, 2010, said safeguards
shall be in accordance with 45 C.F.R. Sections 164.308, 164.310, and
164.312, and shall comply with the Security Rule's policies and procedure
and documentation requirements.
2.4

Reporting Non-Permitted Use or Disclosure and Security Incidents and Breaches
of Unsecured Protected Health Information. Business Associate
(a) shall report to Covered Entity each Use or Disclosure of Protected Health
Information that is made by Business Associate, its employees,
representatives, Agents, subcontractors, or other parties under Business
Associate's control with access to Protected Health Information but which is
not specifically permitted by this Business Associate Agreement or otherwise
required by law.
(b) shall report to Covered Entity each Security Incident of which Business
Associate becomes aware.
(c) shall notify Covered Entity of each Breach by Business Associate, its
employees, representatives, agents or subcontractors of Unsecured
Protected Health Information that is known to Business Associate or, by
exercising reasonable diligence, would have been known to Business
Associate. Business Associate shall be deemed to have knowledge of a
Breach of Unsecured Protected Health Information if the Breach is known, or
by exercising reasonable diligence would have been known, to any person,
other than the person committing the Breach, who is an employee, officer, or
other agent of the Business Associate as determined in accordance with the
federal common law of agency.
2.4.1

Immediate Telephonic Report. Except as provided in Section 2.4.3,
notification shall be made immediately upon discovery of the nonpermitted Use or Disclosure of Protected Health Information, Security
Incident or Breach of Unsecured Protected Health Information by
telephone call to (562) 940-3335.

2.4.2

Written Report. Except as provided in Section 2.4.3, the initial
telephonic notification shall be followed by written notification made
without unreasonable delay and in no event later than three (3)
Business Days from the date of discovery of the non-permitted Use
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or Disclosure of Protected Health Information, Security Incident, or
Breach by the Business Associate to the Chief Privacy Officer at:
Chief Privacy Officer
Kenneth Hahn Hall of Administration
500 West Temple Street
Suite 525
Los Angeles, California 90012
HIPAA@auditor.lacounty.gov
(213) 974-2166
(a)

The notification required by section 2.4 shall include, to the
extent possible, the identification of each Individual whose
Unsecured Protected Health Information has been, or is
reasonably believed by the Business Associate to have been,
accessed, acquired, Used, or Disclosed; and

(b)

The notification required by section 2.4 shall include, to the
extent possible, all information required to provide notification to
the Individual under 45 C.F.R. 164.404(c), including:

(i) A brief description of what happened, including the date of
the Breach and the date of the discovery of the Breach, if
known;
(ii)
A description of the types of Unsecured Protected
Health Information that were involved in the Breach (such as
whether full name, social security number, date of birth,
home address, account number, diagnOSis, disability code,
or other types of information were involved);
(iii)
Any other details necessary to conduct an
assessment of whether there is a risk of harm to the
Individual;
(iv)
Any steps Business Associate believes that the
Individual could take to protect him or herself from potential
harm resulting from the breach;
(v)
A brief description of what Business Associate is
doing to investigate the Breach, to mitigate harm to the
Individual, and to protect against any further Breaches; and
(vi)
The name and contact information for the person
most knowledge regarding the facts and circumstances of
the Breach.

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If Business Associate is not able to provide the information specified in section 2.3.2
(a) or (b) at the time of the notification required by section 2.4.2, Business Associate
shall provide such information promptly thereafter as such information becomes
available.
2.4.3 Request for Delav bv Law Enforcement. Business Associate may delay
the notification required by section 2.4 if a law enforcement official states
to Business Associate that notification would impede a criminal investigation
or cause damage to national security. If the law enforcement official's
in writing and specifies the time for which a delay is required,
statement is
shall delay notification, notice, or posting for the time
Business Associate
period specified by the official; if the statement is made orally, Business
Associate shall document the statement, including the identity of the official
making the statement, and delay notification, notice, or posting temporarily
and no longer than thirty (30) calendar days from the date of the oral
statement, unless a written statement as described in paragraph (a) of this
section is submitted during that time.
2.5

Mitigation of Harmful Effect. Business Associate agrees to mitigate, to the extent
practicable, any harmful effect that is known to Business Associate of a Use or
Disclosure of Protected Health Information by Business Associate in violation of
the requirements of this Business Associate Agreement.

2.6

Breach Notification. Business Associate shall, to the extent Covered Entity
determines that there has been a Breach of Unsecured Protected Health
Information, provide Breach notification for each and every Breach of Unsecured
Protected Health Information by Business Associate, its employees,
representatives, agents or subcontractors, in a manner that permits Covered
Entity to comply with its obligations under Subpart D, Notification in the Case of
Breach of Unsecured PHI, of the Privacy and Security Regulations, including:
(a) Notifying each Individual whose Unsecured Protected Health Information has
been, or is reasonably believed to have been, accessed, acquired, Used, or
Disclosed as a result of such Breach;
(b) The notification required by paragraph (a) of this Section 2.6 shall include, to
the extent possible:
(i) A brief description of what happened, including the date of the Breach and
the date of the discovery of the Breach, if known;
(ii) A description of the types of Unsecured Protected Health Information that
were involved in the Breach (such as whether full name, social security
number, date of birth, home address, account number, diagnosis,
disability code, or other types of information were involved);

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(iii) Any steps the Individual should take to protect him or herself from
potential harm resulting from the Breach;
(iv) A brief description of what Business Associate is doing to investigate the
Breach, to mitigate harm to individuals, and to protect against any further
Breaches; and
(v) Contact procedures for Individual(s) to ask questions or learn additional
information, which shall include a toll-free telephone number, an e-mail
address, Web site, or postal address.
(vi) The notification required by paragraph (a) of this section shall be
written in plain language.
Covered Entity, in its sole discretion, may elect to provide the notification
required by this Section 2.6, and Business Associate shall reimburse Covered
Entity any and all costs incurred by Covered Entity, including costs of notification,
internet posting, or media publication, as a result of Business Associate's Breach
of Unsecured Protected Health Information.
2.7

Availability of Internal Practices, Books and Records to Government Agencies.
Business Associate agrees to make its internal practices, books and records
relating to the Use and Disclosure of Protected Health Information available to
the Secretary of the federal Department of Health and Human Services for
purposes of determining Covered Entity's compliance with the Privacy and
Security Regulations. Business Associate shall immediately notify Covered
Entity of any requests made by the Secretary and provide Covered Entity with
copies of any documents produced in response to such request.

2.8

Access to Protected Health Information. Business Associate shall, to the extent
Covered Entity determines that any Protected Health Information constitutes a
"deSignated record set" as defined by 45 C.F.R. § 164.501, make the Protected
Health Information specified by Covered Entity available to the Individual(s)
identified by Covered Entity as being entitled to access and copy that Protected
Health Information. Business Associate shall provide such access for inspection
of that Protected Health Information within two (2) Business Days after receipt of
request from Covered Entity. Business Associate shall provide copies of that
Protected Health Information within five (5) Business Days after receipt of
request from Covered Entity. If Business Associate maintains an Electronic
Health Record, Business Associate shall provide such information in electronic
format to enable Covered Entity to fulfill its obligations under the HITECH Act.

2.9

Amendment of Protected Health Information. Business Associate shall, to the
extent Covered Entity determines that any Protected Health Information
constitutes a "designated record set" as defined by 45 C.F.R. § 164.501, make

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any amendments to Protected Health Information that are requested by Covered
Entity. Business Associate shall make such amendment within ten (10) Business
Days after receipt of request from Covered Entity in order for Covered Entity to
meet the requirements under 45 C.F.R. § 164.526.
2.10

Accounting of Disclosures. Upon Covered Entity's request, Business Associate
shall provide to Covered Entity an accounting of each Disclosure of Protected
Health Information made by Business Associate or its employees, agents,
representatives or subcontractors, in order to permit Covered Entity to respond to
a request by an Individual for an accounting of disclosures of Protected Health
Information in accordance with 45 C.F.R. § 164.528 and/or the HITECH Act
which requires an Accounting of Disclosures of Protected Health Information
maintained in an Electronic Health Record for treatment, payment, and health
care operations. However, Business Associate is not required to provide an
Accounting of Disclosures that are necessary to perform the Services because
such Disclosures are for either payment or health care operations purposes, or
both.
Any accounting provided by Business Associate under this Section 2.10 shall
include: (a) the date of the Disclosure; (b) the name, and address if known, of
the entity or person who received the Protected Health Information; (c) a brief
description of the Protected Health Information disclosed; and (d) a brief
statement of the purpose of the Disclosure. For each Disclosure that could
require an accounting under this Section 2.10, Business Associate shall
document the information specified in (a) through (d), above, and shall securely
maintain the information for six (6) years from the date of the Disclosure.
Business Associate shall provide to Covered Entity, within ten (10) Business
Days after receipt of request from Covered Entity, information collected in
accordance with this Section 2.10 to permit Covered Entity to respond to a
request by an Individual for an accounting of disclosures of Protected Health
Information in accordance with 45 C.F.R. § 164.528. If Business Associate
maintains an Electronic Health Record, Business Associate shall provide such
information in electronic format to enable Covered Entity to fulfill its obligations
under the HITECH Act.

2.11

Indemnification. Business Associate shall indemnify, defend, and hold harmless
Covered Entity, including its elected and appointed officers, employees, and
agents, from and against any and all liability, including but not limited to
demands, claims, actions, fees, costs, penalties and fines (including regulatory
penalties and/or fines), and expenses (including attorney and expert witness
fees), arising from or connected with Business Associate's acts and/or omissions
arising from and/or relating to this Business Associate Agreement; Business
Associate's obligations under this provision extend to compliance and/or
enforcement actions and/or activities, whether formal or informal, of Secretary of
the federal Department of Health and Human Services and/or Office for Civil
Rights.
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3.0

OBLIGATION OF COVERED ENTITY

3.1

Obligation of Covered Entity. Covered Entity shall notify Business Associate of
any current or future restrictions or limitations on the use of Protected Health
Information that would affect Business Associate's performance of the Services,
and Business Associate shall thereafter restrict or limit its own uses and
disclosures accordingly.

4.0

TERM AND TERMINATION

4.1

Term. The term of this Business Associate Agreement shall be the same as the
term of this Agreement. Business Associate's obligations under Sections 2.1 (as
modified by Section 4.2), 2.4, 2.5, 2.6, 2.7, 2.8, 2.9, 2.10, 4.3 and 5.2 shall
survive the termination or expiration of this Agreement.

4.2

Termination for Cause. In addition to and notwithstanding the termination
provisions set forth in this Agreement, upon either party's knowledge of a
material breach by the other party, the party with knowledge of the other party's
breach shall:
(a) Provide an opportunity for the breaching party to cure the breach or end the
violation and terminate this Agreement if the breaching party does not cure
the breach or end the violation within the time specified by the non-breaching
party;
(b) Immediately terminate this Agreement if a party has breached a material term
of this Agreement and cure is not possible; or
(c) If neither termination nor cure is feasible, report the violation to the Secretary
of the federal Department of Health and Human Services.

4.3

Disposition of Protected Health Information Upon Termination or Expiration.
(a) Except as provided in paragraph (b) of this section, upon termination for any
reason or expiration of this Agreement, Business Associate shall return or
destroy all Protected Health Information received from Covered Entity, or
created or received by Business Associate on behalf of Covered Entity. This
provision shall apply to Protected Health Information that is in the possession
of subcontractors or agents of Business Associate. Business Associate shall
retain no copies of the Protected Health Information.
(b) In the event that Business Associate determines that returning or destroying
the Protected Health Information is infeasible, Business Associate shall
provide to Covered Entity notification of the conditions that make infeasible. If
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return or destruction is infeasible, Business Associate shall extend the
protections of this Business Associate Agreement to such Protected Health
Information and limit further Uses and Disclosures of such Protected Health
Information to those purposes that make the return or destruction infeasible,
for so long as Business Associate maintains such Protected Health
Information.

5.0

MISCELLANEOUS

5.1

No Third Party Beneficiaries. Nothing in this Business Associate Agreement
shall confer upon any person other than the parties and their respective
successors or assigns, any rights, remedies, obligations, or liabilities whatsoever.

5.2

Use of Subcontractors and Agents. Business Associate shall require each of its
agents and subcontractors that receive Protected Health Information from
Business Associate, or create Protected Health Information for Business
Associate, on behalf of Covered Entity, to execute a written agreement obligating
the agent or subcontractor to comply with all the terms of this Business Associate
Agreement.

5.3

Relationship to Services Agreement Provisions. In the event that a provision of
this Business Associate Agreement is contrary to another provision of this
Agreement, the provision of this Business Associate Agreement shall control.
Otherwise, this Business Associate Agreement shall be construed under, and in
accordance with, the terms of this Agreement.

5.4

Regulatory References. A reference in this Business Associate Agreement to a
section in the Privacy or Security Regulations means the section as in effect or
as amended.

5.5

Interpretation. Any ambiguity in this Business Associate Agreement shall be
resolved in favor of a meaning that permits Covered Entity to comply with the
Privacy and Security Regulations.

5.6

Amendment. The parties agree to take such action as is necessary to amend
this Business Associate Agreement from time to time as is necessary for
Covered Entity to comply with the requirements of the Privacy and Security
Regulations and other privacy laws governing Protected Health Information

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