Loading...
HomeMy WebLinkAboutResolution No. 18-7826-Approving the Master Agreement Administering Agency-State Agreement for State-Funded Projects (Agmt No. 00525S)VI -11 :4 L611MV-1 M IM all 0 1 WHEREAS, the State Legislature has enacted legislation by which certain state funds may be made available for use on local transportation -related projects with certain entities qualified to act as recipients of these funds in accordance with the intent of state law, and WHEREAS, the administering agency must enter into an agreement with the State of California before state funds can be made available for a specific project in order to establish terms and conditions applicable to the administering agency when receiving state funds for a designated project and to the subsequent operation and maintenance of the completed improvement(s), and WHEREAS, said agreement consists of a master agreement between the State of California and the administering agency establishing underlying terms and conditions which apply to all projects for which the administering agency receives state funds and is supplemented by sub -agreements specific to each project referred to as Program Supplement Agreements, and WHEREAS, the approval of the State Master Agreement No. 00525S, attached as Exhibit "A", will be necessary for all new state -funded projects, and WHEREAS, all new Program Supplement Agreements associated with said agreement for state -funded projects will require execution by the city, and WHEREAS, in the interest of expediting project delivery, it is desirable to authorize the City Manager to execute all Program Supplement Agreements associated with the new Master Agreement No. 00525S and, furthermore, the Director of Public Works and Deputy Director of Public Works are authorized to execute all other related documents for local transportation projects funded by state funds. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DO EY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Downey hereby approves State Master Agreement Administering Agency -State Agreement for State -Funded Projects (Agreement No. 00525S) attached as Exhibit "A". SECTION 2. The Mayor is hereby authorized to execute the said Agreement No. 00525S with the State Department of Transportation in a form acceptable by the City Attorney. SECTION 3. The City Manager is hereby authorized to execute all Program Supplement Agreements associated with the attached agreement and the Director of Public Works and Deputy Director of Public Works are authorized to execute all other related documents with the state on behalf of the city. I-.1g.101111gle 0 19 -Vej SECTION 4. The City Clerk shall certify to the adoption of this resolution. APPROVED AND ADOPTED this 10th day of July, 2018. 9EA"SHTON, Mayor F-11 i9 .3 AR A �ALICIAUARTE,�t�MC City Clerk I AEREBT CERTIFY that the foregoing Resolution was adopted by the City Council oi the City of Downey at a regular meeting held on the 1 oth day of July, 2018 by the following vote, to wit: AYES: Council Members: Pacheco, Vasquez, Rodriguez, Mayor Ashton NOES: Council Member: None. ABSENT: Council Member: Saab ABSTAIN: Council Member: None. MARA ALICIA DUARTE, CMC City Clerk M 07 City of Downey District Administering Agency 00 _10112"'Wel 10 F.11 -AM HOW. so*. a 6 1-43 RECITALS: I . 1. WHEREAS, the Legislature of the State of California has enacted legislation'by'which certain State funds are made aVallablefor use on local transportation related Orojects*of public entities qualified to act as recipients of these state funds; and 2. WHEREAS, ADMINISTERING AGENCY has applied to the California Transportation Commission (CTC) and/or STATE for funding from either the State Trans drtation Im ` P I provement Program (STIP), or other State -funded -programs (herein referred to as STATE FUNDS), as defined in the Local Assistance Program Guidelines (LAPG), for use on local 6Uthorized transportation related projects as a local administ6eed project(s), hereinafter referred to as "PROJECT"; and 11%0� 3. WHEREAS, said PROJECT will not receive any federal funds; and newma. 1:1 -.4 mule] :4 = linuml I 10. ADMINISTERING AGENCY°s eligible costs for construction engineering includes actual inspection and supervision of PROJECT construction work; construction staking; laboratory and field testing; and the preparation and processing of field reports, records, estimates, final reports, and allowable expenses of employees/consultants engaged in such activities. 11. Unless the PARTIES agree otherwise in writing, ADMINISTERING AGENCY°s employees or its sub -contractor engineering consultant shall be responsible for all PROJECT engineering work. 12. ADMINISTERING AGENCY shall not proceed with final design of PROJECT until final environmental approval of PROJECT. Final design entails the design work necessary to complete the PS&E and other work necessary for a construction contract but not required earlier for environmental clearance of that PROJECT. PROJECT13. If .' on STATE-ownedright-of-way,PROJECT be constructed in accordance . • - of • Assistance Procedures statewideminimum statewide design standards for local agency streets and roads. The design standards for projects off the National Highway System (NHS) allow STATE to accept either the STATE's minimum design standardsor approved •-•metric 'design standardsof ADMINISTERING AGENCY. Additionally, • projects off the NHS, STATE- p) LocalADMINISTERING AGENCY -approved standard specifications, standard plans, materials sampling and testing quality assuriince programs that meet the conditions described in the ther current Procedures 14. If PROJECT involves work within or partially within STATE -owned right-of-way, • PROJECTs be subject to compliance with the policies,procedures an• standards of ' STATE Project Development • -t and Highway Design Manual and - - appropriate, an executed cooperative agreement between • ADMINISTERING AGENCY that outlines the PROJECT responsibilities and respective obligations of - .l contractors shall each obtain an encroachment permh through STATE •:•. to commencing any work within STATE rightsof way or •... which affects STATE facilities. 15. When. PROJECT is not on the State Highway System (SHS) but includes work to be performed by a railroad, the contract for such work shall be prepared by ADMINISTERING AGENCY or by STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING AGENCY shall enter into an agreement with the railroad providing for future maintenance of protective devices or other facilities installed under the contract. 16. The Department of General Services, Division of the State Architect, or its designee, shall review the contract PS&E for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability, ADMINISTERING AGENCY shall not award a PROJECT construction contract for these types of improvements until the State Architect has issued written approval stating that the PROJECT plans and specifications comply with the provisions of sections 4450 and 4454 of the California Government Code, if applicable. Further requirements and guidance are provided in Title 24 of the California Code of Regulations. 17. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection of each PROJECT. While consultants may perform supervision and inspection work for PROJECT with a fully qualified and licensed engineer, ADMINISTERING AGENCY shall provide a full-time employee to be in responsible charge of each PROJECT. Page 3 of 16 18. Unless otherwise provided in the PROGRAM SUPPLEMENT, ADMINISTERING AGENCY shall advertise, award, and administer the PROJECT construction contract or contracts. 19. The cost of maintenance, security, or protection performed by ADMINISTERING AGENCY or contractor forces during any temporary suspension of PROJECT or at any other time may not be charged to the PROJECT. 20. ADMINISTERING AGENCY shall submit PROJECT -specific award information, using Exhib 23-A of the LAPG, to STATE's District Local Assistance Engineer, within sixty (60) days a ft contract award. A copy of Exhibit 23-A shall also be Included with the submittal of the first invoi for a construction contract by ADMINISTERING AGENCY to: Department of Transportatio Division of Accounting Local Programs Accounting Branch, MS #33, PO Box 94287 Sacramento, California 94274-0001. 21. ADMINISTERING AGENCY shall submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure by ADMINISTERING AGENCY to submit a "Report of Expenditures" within 180 days of project completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance Chapters 17 and 19 of the Local Assistance Procedures Manual. E2. ADMINISTERING AGENCY shall comply with the Americans with Disabilities Act (ADA) of 1990 that prohibits d 'iscrimination on the basis of disability.and all applicable regulations and guidelines issued pursuant to the ADA. 24. ADMINISTERING AGENCY shall Include in all subcontracts awarded when applicable, a clause that requires each subconiractor to comply with California Labor Code requirements that all workers employed on public works aspects of any project (as defined in California Labor Code sections 1720-1815) be paid not less than the general prevailing wage rates predetermined by the Department of Industrial Relations as effective at the date of contract award by the ADMINISTERING AGENCY. Page 4 of 16 1. No contract for the construction of a STATE FUNDED PROJECT shall be awarded until all necessary rights of way have been secured. Prior i to the advertising for construction of PROJECT, ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evidence that all necessary rights-of-way are available for construction purposes or will be available by the time •:: award of the construction contract. I it :• a - 1 • 1 - - I I I Ilia ffil I 11IT-111 MUZIOM LIArITWINJUN 4:-IiTA 1:40 IN 41 tain IGNP-1611 RA nu FT (b) The cost of furnishing of right-of-way as provided for herein includes, in addition to real property' required for the PROJECT, title free and clear of obstructions and encumbrances • PROJECT and the payment, as required by applicable • of damages to owners of remainder real property not actually taken but injuriously affected by PROJECT. (c) The cost of relocation payments and services provided to owners and occupants pursuant to Government Code sections 7260-7277 when PROJECT displaces an individual, family, business, farm operation • nonprofit organization. • The cost • demolition and/or the sale •, all improvements on the right-of-way after • is recorded for sale proceeds used to offset PROJECT costs. 3. • AGENCY agrees to indemnify and hold STATE harmless from any liability that may result in the event the right-of-way for a `• including, • not limited • being clear as • • if said right-of-way is found to • hazardous materials requiring treatment or removal to remediate in accordance with Federal and State laws. ADMINISTERING AGENCY shall pay, from its own non-matching funds, any costs which arise out •.'. delays to the construction of PROJECT because utility facilities have not been timely removed or relocated, or because rights-of-way were not available to ADMINISTERING AGENCY for the orderly prosecution of PROJECT work. Page 5 of 16 1. ADMINISTERING AGENCY will maintain and operate the property acquired, developed, constructed, rehabilitated, or restored by PROJECT for its intended public use until such time as the parties might amend this AGREEMENT to otherwise provide. With the approval of STATE, ADMINISTERING AGENCY or its successors in interest in the PROJECT property may transfer this obligation and responsibility to maintain and operate PROJECT property for that intended public purpose to another public entity. 2. Upon ADMINISTERING AGENCY's acceptance of the completed construction contract or upon contractor being relieved of the responsibility for maintaining and protecting PROJECT, ADMINISTERING AGENCY will be responsible for the maintenance, ownership, liability, and the expense thereof, for PROJECT in a manner satisfactory to the authorized representatives of STATE r if PROJECT jurisdictionalof • Agency or • e, duty of AGENCY to facilitate a separatemaintenance agreement(s)between itself r the other jurisdictionalAgency or Agencies providing • _ operation, ownership* and liability of PROJECT. Until those agreements are executed, ADMINISTERING AGENCY will be responsible for all PROJECT.operations, maintenance, ownership and liabilityin a manner satisfactory to the authorized representatives of STATE. If, within ninety (90) days after receipt of notice from STATE that a PROJECT, or any pbrtion thereof, Is not being properly operated - • maintained and ADMINISTERING AGENCY has not• -a -■ the conditions complained of, the approval of future STATE FUNDED PROJECTS of ADMINISTERING AGENCY will be withheld until the PROJECT shall have been put in a condition of operation and maintenance satisfactory to STATE. The provisions of this section shall not apply to a PROJECT that has been vacated through due process of law with STATE's concurrence. 3. PROJECT and its facilities shall be maintained by an adequate and well-trained staff of engineers and/or such other professionals and technicians as PROJECT reasonably requires. Said operations and maintenance staff may be employees of ADMINISTERING AGENCY, another unit of government, or a contractor under agreement with ADMINISTERING AGENCY. All maintenance will be performed at regular intervals or as required for efficient operation of the complete PROJECT improvements. Page 6 of 16 M 1. All contractual obligations of STATE are subject to the appropriation of resources by the Legislature and the allocation of resources by the CTC. 2. STATE'S financial commitment of STATE FUNDS will occur only upon the execution of this AGREEMENT; the execution of each project -specific PROGRAM SUPPLEMENT and/or STATE's approved finance letter. • i • c • -• • r a • • - 6. Invoices must have at least one copy of supporting backup documentation for allowable costs incurred and claimed for reimbursement by ADMINISTERING AGENCY. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or computerized summary of PROJECT costs. 8. An indirect cost allocation plan and related documentation are to be provided to STATE (Caltrans Audits & Investigations) annually for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of indirect cost incurred within each fiscal year being claimed for reimbursement. The indirect cost allocation plan must be prepared 'in accordance with the requirements set forth in Office of Management and Budget Circular A-87 and Chapter 4 of the Local Assistance Procedures Manual. 9. STATE will withhold - greater of • per6ent of a of submitsencumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY Repo:' of Expenditures for• • - -• PROGRAM SU PROJECT. 10. The estimated total cost of PROJECT, the amount of STATE FUNDS obligated, and the required matching funds may be adjusted by mutual consent of the PARTIES with an allocation letter and finance letter. STATE FUNDING may be increased to cover PROJECT cost increases only if such additional funds are available and the CTC and/or STATE concurs with that increase in the form of an allocation and finance letter. Page 7 of 16 forth in 23 CFR Parts 140, 645 and 646 when contracting with railroad and utility companies. 19. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under OMB Circular A-87, 48 CFR, Chapter 1, Part 31, 23 CFR Parts 140, 645 and 646 or 49 CFR, Part 18, are subject to repayment by ADMINISTERING AGENCY to STATE. 20. Upon written demand by STATE, any overpayment to ADMINISTERING AGENCY of amounts invoiced to STATE shall be returned to STATE. 21. Should ADMINISTERING AGENCY fail to refund any moneys due STATE as provided herein or should ADMINISTERING AGENCY breach this AGREEMENT by failing to complete PROJECT without adequate justification and approval by STATE, then, within thirty (30) days of demand, or within such other period as may be agreed to in writing between the PARTIES hereto, STATE, acting through the State Controller, the State Treasurer, the CTC or any other public entity or agency, may intercept, withhold and demand the transfer of an amount equal to the amount paid by or owed to STATE for each PROJECT, from future apportionments, or any other funds due ADMINISTERING AGENCY from the Highway Users Tax Fund or any other sources of funds, and/or may also withhold approval of future STATE FUNDED projects proposed by ADMINISTERING AGENCY. 22.• Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT or otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a joint powers authority,'special district, or any other public entity not directly receiving funds through the State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding are available, including the withholding or transfer of funds, pursuant to Article IV - 21, from those constituent entities comprising a joint powers authority or by bringing of an action against ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by STATE hereunder. 23. ADMINISTERING AGENCY acknowledges that the signatory party represents the ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict or otherwise limit STATE's ability to recover STATE FUNDS improperly spent by ADMINISTERING AGENCY in contravention of the terms of this AGREEMENT. Page 9 of 16 M_ 7. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain all of the provisions of Article IV, FISCAL PROVISIONS, and this ARTICLE V, AUDITS, THIRD -PARTY CONTRACTING, RECORDS RETENTION AND REPORTS and shall mandate that travel and per diem reimbursements and third -party contract reimbursements to subcontractors will be allowable as PROJECT costs only after those costs are incurred and paid for by the subcontractors. 8. To be eligible for local match credit, ADMINISTERING AGENCY must ensure that local match funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in the same manner that is required of all other PROJECT expenditures. Page 11 of 16 1. ADMINISTERING AGENCY agrees to use all PROJECT funds reimbursed hereunder only for transportation purposes that are in conformance with Article XIX of the California State Constitution and other California laws. 2. ADMINISTERING AGENCY shall conform to all applicable State and Federal statutes ar,"" , 0 regulations, and the Local Assistance Program Guidelines and Local Assistance Procedur I, Manual as published by STATE and incorporated herein, including all subsequent approv revisions thereto applicable to PROJECT unless otherwise designated in the project-specifi executed PROJECT SUPPLEMENT. 3. This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute enacted by,the State Legislature or adopted by the CTC that may affect the provisions, terms, or funding of this AGREEMENT in any manner. 4. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENCY, when engaged in the performance of this AGREEMENT, shall act in an independent capacity and not as officers, employees or agents of STATE. Each project -specific PROGRAM SUPPLEMENT shall separately establish the terms and funding limits for each described PROJECT ' funded under this AGREEMENT and that PROGRAM SUPPLEMENT. No STATE FUNDS are obligated against this AGREEMENT. 6. ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its principals are suspended or debarred at the time of the execution of this AGREEMENT, and ADMINISTERING AGENCY agrees that it will notify STATE immediately in the event a suspension or a debarment occurs after the execution of this AGREEMENT. 7. ADMINISTERING AGENCY warrants, by execution of this AGREEMENT, that.no person or selling agency has been employed or retained to solicit or secure this AGREEMENT upon an 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 ADMINISTERING AGENCY for the purpose of securing business. For breach or violation of this warranty, STATE has the right to annul this AGREEMENT without liability, pay only for the value of the PROJECT work actually performed, or In STATE's discretion, to deduct from the price of PROGRAM SUPPLEMENT consideration, or otherwise recover, the full amow of such commission, percentage, brokerage, or contingent fee. 8. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY hereby certifies under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against ADMINISTERING AGENCY within the immediate preceding two (2) year period because of ADMINISTERING AGENCY's failure to comply with an order of a federal court that orders ADMINISTERING AGENCY to comply with an order of the National Labor Relations Board. 9. ADMINISTERING AGENCY shall disclose any financial, business, or other relationship with STATE that may have an impact upon the outcome of this AGREEMENT or any individual PROJECT encompassed within a PROGRAM SUPPLEMENT. ADMINISTERING AGENCY shall also list current contractors who may have a financial interest in the outcome of a PROJECT undertaken pursuant to this AGREEMENT. Page 12 of 16 0 10. ADMINISTERING AGENCY hereby certifies that it does not now have nor shall it acquire any financial or business interest that would conflict with the performance of any PROJECT initiated under this AGREEMENT. 11. ADMINISTERING AGENCY warrants that this AGREEMENT was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any STATE employee. For breach or violation of this warranty, STATE shall have the right, in its sole discretion, to terminate this AGREEMENT without liability, to pay only for PROJECT work actually performed, or to deduct from a PROGRAM SUPPLEMENT price or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration. • • - r . - . s • r - .r •• -• ot by agreement snall •- •- r -r • ' . •dU or verbal evidence submitted by ADMINISTERING AGENCY. The decision of the Contract Officer, issued in writing, shall be conclusive and binding on the PARTIES on all questions of fact considered . -- - Officer. 13. Neither the pending of a dispute nor its consideration by the Contract Officer will excuse the ADMINISTERING AGENCY from full and timely performance in accordance with the terms of this AGREEMENT and each PROGRAM SUPPLEMENT. arisingunde� or in connection with any work, authority or jurisdiction of ADMINISTERING AGENC under this AGREEMENT. It is understood and agreed shall fully defend, indemnify and save harmless STATE and all of Its officers and employees fr• liabilityall claims and suits or actions of every name, kind and description brought forth under, includin but not limited to, tortuous, contractual, inverse condemnation or other theories or assertions occurring by - s of a done or omitted to be done by under 15. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by, under or In connection with any work, authority or jurisdiction arising under this AGREEMENT. It is understood and agreed that STATE shall fully defend, indemnify and save harmless the ADMINISTERING AGENCY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including but not limited to, tortuous, contractual, Inverse condemnation and other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this AGREEMENT. 16. In the event of (a) ADMINISTERING AGENCY failing to timely proceed with effective PROJECT work in accordance with the project -specific PROGRAM SUPPLEMENT; (b) failing to maintain any applicable bonding requirements; and (c) otherwise materially violating the terms and conditions of this AGREEMENT and/or any PROGRAM SUPPLEMENT, STATE reserves the right to terminate funding for that PROJECT upon thirty (30) days'written notice to ADMINISTERING AGENCY. 17. No termination notice shall become effective if, within thirty (30) days after receipt of a Notice of Termination, ADMINISTERING AGENCY either cures the default involved or, if the default is not reasonably susceptible of cure within said thirty (30) day period the ADMINISTERING Page 13 of 16 AGENCY proceeds thereafter to complete that cure in, a manner and time line acceptable to STATE. • • it • - •- • - - - • •* IN 19. In the case of inconsistency or conflicts with the terms of this AGREEMENT and that of a project -specific PROGRAM SUPPLEMENT and/or Cooperative Agreement, the terms stated in that PROGRAM SUPPLEMENT and/or Cooperative Agreement shall prevail over those in this AGREEMENT. 20. Without the written consent of STATE, this AGREEMENT is not assignable by ADMINISTERING AGENCY either in whole or in part. 21. No alteration or variationof - terms of be valid unin writilng. and signed by the PARTIES, and -no oral understanding or agreement not incorporated herein shall be binding on any of the PARTIES. less made IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly authorized officer. Chief, Office of Project Implementation Division of Local Assistance Dates r r,c foregoing instrument is a full, true and correct copy of the original on file in this office City Clerk of the City of Downey City of Dow y " X a ✓, ,� z y;.,� « , Manager City of Downey Representative Name & Title (Authorized Governing Body Representative) Date Lajaij2.Li s Page 14 of 16 APP-'0VE:D A O R CITY ATTORNEY eel to their race, sex, sexual orientation, color, religion, ancestry, or national origin, physical disability, medical condition, marital status, political affiliation, family and medical care leave, pregnancy leave, or disability leave. Such action shall include, but not be limited to, the following: .• • demotion or or - advertising; laor termination;of pay • other forms ofcompensation;:dselectionfor : •including apprenticeship. ADMINISTERING AGENCY shall post in conspicuous places, available to employees for employment, notices to be provided by STATE setting forth the provisions of this Fair Employment section. 2. ADMINISTERING AGENCY, Its contractor(s) and all subcontractors shall comply with the 140� provisions of the Fair Employment and Housing Act (Gov. Code, 1290-0 et seq.), and the applicable regulations promulgated thereunder (Cal. Code Regs.,Title 2, 7285.0, et seq.). The applicable regulations of the Fair Employment and Housing Commission Implementing Government Code section 12900(a -f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this AGREEMENT by reference and made a part hereofas if setforthof ADMINISTERING AGENCY'Scontractors• all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements, as appropriate. 4. ADITrilAISTERING AGENCT permit accessto the records,of employment, employment advertisements, application forms, and other pertinent data and records by STATE, the State Fair Employment and Housing Commission, or any other agency of the State of California designated by STATE, for the purposes of investigation to ascertain compliance with the Fair Employment section of this Agreement. (a) STATE may determine a willful violation of the Fair Employment provision to have occurred upon receipt of a final judgment to that effect from a court in an action to which ADMINISTERING AGENCY was a party, or upon receipt of a written notice from the Fair Employment and Housing Commission that it has investigated and determined that ADMINISTERING AGENCY has violated the Fair Employment Practices Act and had issued an order under Labor Code section 1426 which has become final or has obtained an injunction under Labor Code section 1429. (b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate this Agreement either in whole or in part, and any loss or damage sustained by STATE in securing the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY and by the surety under the performance bond, if any, and STATE may deduct from any moneys due Page 15 of 16 M FWA or thereafter may become due to ADMINISTERING AGENCY, the difference between the price named In the Agreement and the actual cost th_ - ADMINISTERING AGENCY's breach of this .-