HomeMy WebLinkAbout2022-10-25 - AGENDA REPORTS - LACO AGMT TRANSIT SERVICESO
Agenda Item: 6
1. CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: A,1
DATE: October 25, 2022
SUBJECT: AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND
THE COUNTY OF LOS ANGELES FOR THE OPERATION OF
TRANSIT SERVICES IN THE UNINCORPORATED SANTA
CLARITA VALLEY FOR FISCAL YEAR 2022-23 THROUGH
FISCAL YEAR 2025-26
DEPARTMENT: Economic Development
PRESENTER: Adrian Aguilar
RECOMMENDED ACTION
City Council approve an agreement with the County of Los Angeles for the City of Santa Clarita
to provide public transportation services in unincorporated areas, and authorize the City Manager
or designee to execute the Agreement, or modify the award in the event that issues of
impossibility of performance arise, subject to City Attorney approval.
BACKGROUND
Since 1991, the City of Santa Clarita (City) has assumed responsibility from the County of Los
Angeles Department of Public Works (County) for public transportation services in the Santa
Clarita Valley (Valley). In return, the County reimburses the City for the transportation services
operated in the unincorporated areas. Based on the current level of public transportation service
provided in the unincorporated versus incorporated area, the County reimburses the City as
follows:
• 14.78 percent of local bus service costs
• 22.97 percent of commuter express bus service costs
• 11.95 percent of paratransit (Dial -a -Ride) service costs
• Bus procurements shared by the County using above allocations
• 15 percent administrative overhead fee
These percentages have remained consistent over the years, and are being proposed in the next
agreement that will cover Fiscal Year 2022-23 to Fiscal Year 2025-26. City staff works closely
with the County to ensure that the level of public transportation services meets the needs of
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County residents, and that the City is properly compensated for the services provided in the
unincorporated areas of the Valley.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The Los Angeles County maximum contribution is $3,771,000 for Fiscal Year 2022-23. The
expenditure and revenue have been incorporated into the Fiscal Year 2022-23 budget.
ATTACHMENTS
County Contract FY 22 - FY 26 (available in the City Clerk's Reading File)
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AGREEMENT
BY AND BETWEEN
THE COUNTY OF LOS ANGELES
DEPARTMENT OF PUBLIC WORKS
AND
SANTA CLARITA TRANSIT
FOR
SANTA CLARITA VALLEY TRANSIT SERVICES
FISCAL YEARS 2022-23, 2023-241 2024-25, 2025-26
AGREEMENT
THIS cooperative AGREEMENT (hereinafter referred to as AGREEMENT), made
and entered into by and between the City of Santa Clarita, a municipal corporation in the
County of Los Angeles (hereinafter referred to as CITY), and the County of
Los Angeles, a political subdivision of the State of California (hereinafter referred to as
COUNTY):
WITNESSETH
WHEREAS, CITY and COUNTY agree that it is in the public's interest to provide
various forms and modes of public transportation services, including a system of local bus
passenger service, commuter bus service, and paratransit service to the eligible elderly
sixty (60) years and older, persons with disabilities, and the general public (hereinafter
referred to as SERVICES), to serve the public in the Santa Clarita Valley; and
WHEREAS, CITY and COUNTY desire to operate SERVICES during Fiscal
Years 2022-23, 2023-24, 2024-25, 2025-26; and
WHEREAS, CITY is willing to administer the contract for SERVICES for Fiscal
Years 2022-23, 2023-24, 2024-25, 2025-26; and
WHEREAS, CITY and COUNTY propose to finance their respective jurisdictional
shares of the total actual cost of SERVICES, including operational costs (contract and
vehicle acquisition/lease costs) and administration; and
WHEREAS, because of CITY/COUNTY joint programs set forth herein, CITY shall
apply for and CITY may be granted incentive, bonus, or other funds, including but not
limited to, the Los Angeles County Metropolitan Transportation Authority (LACMTA)
Subregional Paratransit Grant Program funds, Federal Transit Administration funds,
Congestion Mitigation and Air Quality funds, Proposition A Discretionary funds, State
Transit Assistance funds, Proposition C Discretionary funds, or Proposition A Incentive
funds (all hereinafter referred to as BONUS), which shall be applied to the total actual cost
of service as described in Exhibit A.
NOW, THEREFORE, in consideration of the mutual benefits to be derived by CITY
and COUNTY and of the promises herein contained, it is hereby agreed as follows:
FIRST: CITY, for the consideration hereafter set forth and the acceptance by the
County of Los Angeles Board of Supervisors (hereinafter referred to as BOARD) of said
COUNTY, hereby agrees to provide SERVICES as described in the attached Exhibit A,
Scope of Work.
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IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to
be executed by their respective officers, duly authorized by the CITY OF SANTA CLARITA
on 2022, and by the DIRECTOR OF PUBLIC WORKS
on 2022, pursuant to the delegated authority by the COUNTY OF
LOS ANGELES Board of Supervisors, , 2022, Item
COUNTY OF LOS ANGELES
APPROVED AS TO FORM:
DAWYN R. HARRISON
Acting County Counsel
is
Deputy
CITY OF SANTA CLARITA
M
ATTEST:
0
City Manager
City Clerk
City Attorney
Director of Public Works
P:\TPUB\TRNST\(REGNLOPRT)\SC\AGMT 18-22\AGRMNT FY22-26
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H. CITY shall maintain operating and fiscal records as necessary to comply with
LACMTA Proposition A Local Return requirements and procedures and to
maintain all records on file for a minimum of five (5) years following the terms
of this AGREEMENT.
All vehicles used in SERVICES shall be maintained at a minimum to
meet standards in accordance with vehicle manufacturer's recommended
preventive maintenance program. All vehicles required to be utilized in this
AGREEMENT will be safe for operation on public roads and streets. All
vehicles shall be free of graffiti and any obvious damage to the interior and
exterior and shall be thoroughly cleaned prior to operation of SERVICES.
All vehicles, vehicle equipment, and other equipment and facilities
required by this AGREEMENT and maintained by CITY contractor(s) and/or
subcontractor(s) during the term hereof, shall be in good order and repair and
in condition satisfactory to DIRECTOR.
J. CITY shall be responsible for collection of National Transit Database (NTD)
data as required by the Federal Transit Administration (FTA) on behalf of
COUNTY. CITY shall prepare and submit quarterly and annual NTD reports,
including data for the unincorporated COUNTY communities served, in
accordance with the FTA's NTD Guidelines to LACMTA with a copy
forwarded to the DIRECTOR. CITY shall be responsible for complying with
all current NTD and FTA requirements.
2. COUNTY'S RESPONSIBILITIES
A. COUNTY shall review and approve, as appropriate, invoices submitted by
the CITY to the DIRECTOR for the COUNTY'S jurisdictional share of the total
cost of SERVICES, less BONUS and fares, and to pay CITY within
thirty (30) calendar days of approval of invoices.
B. COUNTY shall pay for its jurisdictional share for the purchase of the local
service and commuter buses less BONUS. Payment is to be made within
thirty (30) calendar days of approval of invoice.
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emergency, CITY shall cooperate with and deploy vehicles, within the limits
of available resources, in a manner described by the County of Los Angeles
Sheriffs and Fire Departments, or local police. CITY may invoice COUNTY
for such emergency service(s) provided within the unincorporated COUNTY
communities at the same rates described in paragraph H. If regular
SERVICES are disrupted during an emergency, charges for SERVICES shall
be suspended for the duration of such emergency.
H. CITY and COUNTY'S jurisdictional shares of the total actual costs of
SERVICES shall be determined as follows:
1. Local Bus Service
CITY'S jurisdictional share shall be equal to the ratio of service
revenue hours traveled in CITY to the total system revenue hours
traveled. COUNTY'S jurisdictional share shall be equal to the ratio of
service revenue hours traveled in COUNTY to the total system service
revenue hours traveled as shown in the CITY Local Service Timetable
effective January 8, 2012. CITY'S jurisdictional share of the local
bus service is 85.22 percent and COUNTY'S jurisdictional share is
14.78 percent.
2. Commuter Bus Service
CITY'S jurisdictional share shall be equal to the percentage of the total
ridership who are CITY residents. COUNTY'S jurisdictional share
shall be equal to the percentage of the total ridership, who are
residents of the unincorporated COUNTY communities. The current
share is based on a CITY survey of commuters completed in the
spring of 2010. CITY'S jurisdictional share is 77.03 percent and
COUNTY'S jurisdictional share is 22.97 percent.
3. Paratransit Services
CITY'S jurisdictional share shall be equal to the percentage of the total
ridership who are CITY residents. COUNTY'S jurisdictional share
shall be equal to the percentage of the total ridership who are
residents of the unincorporated COUNTY communities. The
jurisdictional shares shall be based on the ridership information from
Fiscal Year 2009-10. CITY'S jurisdictional share of paratransit
services is 88.05 percent and COUNTY'S jurisdictional share is
11.95 percent.
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EXHIBIT B — GENERAL REQUIREMENTS
1. Interpretation of AGREEMENT
A. Ambiguities or Discrepancies
Both parties have either consulted or had the opportunity to consult with legal
counsel regarding the terms of this AGREEMENT and are fully cognizant of
all terms and conditions herein. Should there be any uncertainty, ambiguity,
or discrepancy in the terms or provisions hereof, or should any
misunderstanding arise as to the interpretation to be placed upon any
position hereof or the applicability of the provisions hereunder, neither
party shall be deemed as the drafter of this AGREEMENT and the
uncertainty, ambiguity, or discrepancy shall not be construed against either
party.
B. Definitions
Whenever in the AGREEMENT, Scope of Work, Terms, Requirements,
and/or Conditions the following terms are used, the intent and meaning shall
be interpreted as follows:
AGREEMENT — The written agreement covering the performance of the
SERVICES and the furnishing of labor, materials, supervision, and
equipment in the performance of the SERVICES.
BOARD — The County of Los Angeles Board of Supervisors.
City — City of Santa Clarita, a municipal corporation in the County of
Los Angeles.
Contractor — The person or persons, sole proprietor, partnership, joint
venture, corporation or other entity who has entered into AGREEMENT with
the CITY to perform or execute the SERVICES covered herein.
County — The County of Los Angeles or County of Los Angeles
Department of Public Works.
Countv's Chief Executive Officer— The Chief Executive Officerforthe County
of Los Angeles appointed by the BOARD.
Day — The calendar day(s) unless otherwise specified.
Director — The County of Los Angeles Director of Public Works or his
designee.
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3. COUNTY may, at its sole discretion, authorize extensions of time to this
AGREEMENT'S term. CITY agrees that such extensions of time shall
not change any other term or condition of this AGREEMENT during the
period of such extensions. To implement an extension of time, an
amendment to this AGREEMENT shall be prepared and executed by
CITY and BOARD, or if delegated by BOARD, DIRECTOR and CITY.
To the extent that extensions of time for CITY performance do not
impact either scope or cost of this AGREEMENT, DIRECTOR may, at
her sole discretion, grant CITY extensions of time provided, however,
the aggregate of all such extensions during the life of this AGREEMENT
shall not exceed sixty (60) days.
B. Budget Reduction
In the event that the BOARD adopts, in any fiscal year, a COUNTY budget,
which provides for reduction in the salaries and benefits paid to the majority
of COUNTY employees or imposes similar reductions with respect to
COUNTY contracts, 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 CITY under this
AGREEMENT shall also be reduced correspondingly. COUNTY'S notice to
CITY regarding said reduction in payment obligation shall be provided within
thirty (30) days of the BOARD'S approval of such actions. Except as set forth
in the preceding sentences, CITY shall continue to provide all of the services
set forth in this AGREEMENT.
C. Compliance with Applicable Laws
CITY, or its contractor, shall comply with all applicable Federal, State,
and local laws, rules, regulations, ordinances, or directives, and all
provisions required thereby to be included in this AGREEMENT herein
are hereby incorporated by reference. This AGREEMENT shall be
governed by and construed in accordance with the laws of the State of
California. To the maximum extent permitted by applicable law, CITY
and COUNTY agree and consent to the exclusive jurisdiction of the
courts of the State of California for all purposes concerning this
AGREEMENT and further agree and consent that venue of any action
brought in connection with or arising out of this AGREEMENT, shall
be exclusively in the COUNTY.
2. CITY, or its contractor, shall defend, indemnify, and hold COUNTY
harmless from and against any and all liability, damages, costs,
expenses including, but not limited to, defense costs, and attorney's
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CITY'S duty under this AGREEMENT to comply with all applicable
provisions of law, CITY warrants that it is now in compliance and shall
during the term of this AGREEMENT maintain compliance with the
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
Assignment for Child, Family, or Spousal Support, pursuant to Code
of Civil Procedure Section 706.031 and Family Code Section 5246(b).
F. Employment Eligibility Verification
1. CITY warrants that it fully complies with all Federal and State
statutes and regulations regarding the employment of aliens and
others and that all of its employees performing work under this
AGREEMENT meet the citizenship or alien status requirements set
forth in Federal and State statutes and regulations. CITY shall
obtain from all covered employees performing services 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. CITY shall retain all such documentation for all covered
employees for the period prescribed by law.
2. CITY shall indemnify, defend, and hold harmless, COUNTY, its
BOARD, agents, officers, and employees from employer sanctions
and any other liability, which may be assessed against CITY or
COUNTY or both in connection with any alleged violation of Federal or
State statutes or regulations pertaining to the eligibility for employment
of persons performing services under this AGREEMENT.
G. No Pavment for Services Following Expiration/Suspension/Termination of
AGREEMENT
CITY shall have no claim against COUNTY for payment of any money or
reimbursement, of any kind whatsoever, for any service provided by CITY
after the expiration, suspension, or termination of this AGREEMENT.
Should CITY receive any such payment, it shall immediately notify COUNTY
and shall immediately repay all such funds to COUNTY. Payment by
COUNTY for services rendered after expiration/suspension/termination of
this AGREEMENT shall not constitute a waiver of COUNTY'S right to
recover such payment from CITY. This provision shall survive the
expiration/suspension/termination of this AGREEMENT.
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4. Indemnification and Insurance Requirements
Insurance requirements stated below apply to all CITY contractor(s) as well as
CITY, provided, however, that DIRECTOR will accept evidence from CITY of
self-insurance program, which meets the requirements stated below.
A. The parties agree the Assumption of Liability Agreement 59595 approved by
the County of Los Angeles Board of Supervisors on June 21, 1988, and/or a
Joint Indemnity Agreement approved by the County of Los Angeles Board of
Supervisors on October 8, 1991, shall not apply in relation to the SERVICES.
B. In addition to all other indemnities in favor of COUNTY in this AGREEMENT,
CITY shall indemnify, defend, and hold harmless COUNTY, BOARD, its
officers, agents, employees, and its special districts (hereafter collectively
referred to as COUNTY indemnitees), from and against any and all liability,
expense, including defense costs and legal fees, and claims for damages of
any nature whatsoever including, but not limited to, bodily injury, death, or
property damage arising from or connected with any alleged act or omission
of CITY, or its contractor(s) in connection with the SERVICES, including but
not limited to, maintenance of equipment, or operation of SERVICES,
including any workers' compensation suits, liability, or expense, and
excepting any such loss or damage arising from the sole negligence orwillful
misconduct of COUNTY indemnitees. CITY expressly waives application of
Government Code Section 895.2, which provides for joint and several
liabilities of public entities entering into agreements absent inclusion of an
indemnity provision to the contrary. The provisions of Section 2778 of the
California Civil Code are made a part hereof.
In addition, without limiting the CITY'S foregoing indemnity in favor of
COUNTY indemnitees, if CITY provides SERVICES through a contractor,
CITY shall use its best effort to include in its contract with any contractor(s)
providing SERVICES under this AGREEMENT a provision with the above
terms whereby the contractor(s) agree(s) to indemnify, defend, and hold
harmless COUNTY indemnitees as third -party beneficiaries, on the same
basis the CITY indemnifies, defends, and holds harmless the COUNTY
indemnitees under this AGREEMENT.
C. Without limiting CITY'S and CITY contractor's indemnification of COUNTY,
during the term of this AGREEMENT, CITY shall provide and maintain, or if
CITY'S contractor provides SERVICES, CITY shall ensure that its
contractor(s) provide and maintain, the program(s) of insurance covering its
operations hereunder as specified in Section 4.E.
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A certificate evidencing such insurance coverage and an endorsement
naming COUNTY as additional insured thereunder shall be filed with
DIRECTOR prior to CITY providing SERVICES hereunder.
3. Workers' Compensation and Employers' Liability insurance or
qualified self-insurance program of workers' compensation insurance
in an amount and form to meet all applicable requirements of the
Labor Code of the State of California, including employer's liability with
a $1,000,000 limit, covering all persons CITY is legally required to
cover.
A certificate evidencing such insurance coverage shall be filed with
DIRECTOR prior to CITY providing SERVICES hereunder.
4. Sexual Misconduct Liability insurance covering actual or alleged
claims for sexual misconduct and/or molestation with limits of not less
than $2,000,000 per claim and $2,000,000 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.
5. Failure on the part of CITY or CITY'S contractor(s) to procure or
maintain required insurance shall constitute a material breach of this
AGREEMENT upon which COUNTY may, at its sole and absolute
discretion, immediately suspend or terminate this AGREEMENT.
5. Compliance with COUNTY'S Jury Service Program
A. Jury Service Program
This AGREEMENT is subject to the provisions of COUNTY'S ordinance entitled
Contractor Employee Jury Service (Jury Service Program) as codified in
Sections 2.203.010 through 2.203.090 of the Los Angeles County Code.
Exhibits D and E include the Jury Service Ordinance and Jury Service
Certification form.
B. Written Emplovee Jury Service Policy
1. CITY is a contractor subject to compliance with the COUNTY'S Jury
Service Program unless CITY has demonstrated to COUNTY'S
satisfaction either that CITY is not a contractor as defined in Jury
Service Program (Section 2.203.020 of Los Angeles County Code) or
that CITY qualifies for an exception to the Jury Service Program under
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in its sole discretion, terminate or suspend the AGREEMENT as
provided in Exhibit B, Section 3.A., Termination/Suspension of
AGREEMENT.
6. Safely Surrendered Baby Law Program
A. Contractor's Acknowledgement of COUNTY'S Commitment to the Safely
Surrendered Babv Law
CITY acknowledges that COUNTY places a high priority on the
implementation of the Safely Surrendered Baby Law. CITY understands that
it is COUNTY'S policy to encourage all COUNTY contractors to voluntarily
post COUNTY'S Safely Surrendered Baby Law poster in a prominent position
at the contractor's place of business. CITY will also encourage its
contractors, if any, to post this poster in a prominent position in the
contractor's place of business. COUNTY'S Department of Children and
Family Services will supply CITY with the poster to be used. Information on
how to receive the poster can be found on the Internet at
www.babvsafela.orq.
B. Notice to Em0ovees Regarding the Safely Surrendered Baby Law
CITY shall notify and provide to its employees, and shall require each
contractor, to notify and provide to its employees, a fact sheet regarding the
Safely Surrendered Baby Law, its implementation in COUNTY, and where
and how to safely surrender a baby. The fact sheet is set forth in Exhibit F of
AGREEMENT and is also available on the Internet at www.babysafela.org
for printing purposes.
7. Time Off for Votin
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The CITY shall notify its employees and shall require each contractor to notify and
provide to its employees, information regarding the time off for voting law (Elections
Code, Section 14000). Not less than ten (10) days before every Statewide election,
every CITY and its contractor, shall keep posted conspicuously at the place of work,
if practicable, or elsewhere where it can be seen as employees come or go to their
place of work, a notice setting forth the provisions of Section 14000.
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EXHIBIT C — EVIDENCE OF INSURANCE PROGRAMS (CONTINUED)
3. The following information for each of the insured vehicle(s):
a. Vehicle make
b. Vehicle model
C. Vehicle year
d. Vehicle license number
e. Vehicle identification number
f. Vehicle seating capacity
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3. A purchase made through a State or Federal contract; or
4. A monopoly purchase that is exclusive and proprietary to a specific
manufacturer, distributor, or reseller, and must match and intermember with
existing supplies, equipment, or systems maintained by the County pursuant
to the Los Angeles County Purchasing Policy and Procedures Manual,
Section P-3700 or a successor provision; or
5. A revolving fund (petty cash) purchase pursuant to the Los Angeles County
Fiscal Manual, Section 4.4.0 or a successor provision; or
6. A purchase card purchased pursuant to the Los Angeles County Purchasing
Policy and Procedures Manual, Section P-2810 or a successor provision; or
7. A nonagreement purchase with a value of less than Five Thousand and
00/100 Dollars ($5,000.00) pursuant to the Los Angeles County Purchasing
Policy and Procedures Manual, Section A-0300 or a successor provision; or
8. A bona fide emergency purchase pursuant to the Los Angeles County
Purchasing Policy and Procedures Manual, Section PP-1100 or a successor
provision.
D. "Full-time" means 40 hours or more worked per week, or a lesser number of hours if:
The lesser number is a recognized industry standard, as determined by the
Chief Executive Officer, or
2. The contractor has a long-standing practice that defines a full-time schedule
as less than 40 hours per week.
E. "County" means the County of Los Angeles or any public entity for which the Board
of Supervisors is the governing body.
2.203.030 Applicability. This chapter shall apply to contractors who enter into contracts
that commence after July 11, 2002. This chapter shall also apply to contractors with
existing contracts, which are extended into option years that commence after
July 11, 2002. Contracts that commence after May 28, 2002, but before July 11, 2002,
shall be subject to the provisions of this chapter only if the solicitations for such contracts
stated that the chapter would be applicable.
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3. Is not an affiliate or subsidiary of a business dominant in its field of operation.
"Dominant in its field of operation" means having more than ten (10) employees and
annual gross revenues in the preceding twelve (12) months, that, if added to the
annual amount of the contract awarded, exceed Five Hundred Thousand and
00/100 Dollars ($500,000.00).
Affiliate or subsidiary of a business dominant in its field of operation means a
business which is at least twenty percent (20 percent) owned by a business
dominant in its field of operation, or by partners, officers, directors, majority
stockholders, or their equivalent of a business dominant in that field of operation.
2.203.090 Severability. If any provision of this chapter is found invalid by a court of
competent jurisdiction, the remaining provisions shall remain in full force and effect.
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Safel
Surrendered
Baby Law
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Babies can be safely surrendered to staff at any bospital orfire station in Los Angeles County
No shame. No blame. No names.
1n Los Argue County. I-M-BABY SAFE • 14177-222-W23
wwwJwMrj*WW&arg 9t
L 91 de Entrega de Bebes
Sin Peligro
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Los reciin nacidos pueden ser entregados enr forma Segura al persottaf
de cualquwr hospital o cuartel de bomberos del Condado de Los Ar igeles
Sin pens. Sin culpa. Sin nombres.
En el Candado de Los Angebw 14 7 -OM SAFE • 14877-272-9723
www babysaf9W.orq dl
EXHIBIT G — INTERNAL REVENUE SERVICE NOTICE 1016
Department of the Treasury
rAl Internal Revenue Service
Notice 1016
(Rev. December 2013)
Have You Told Your Employees About the
Earned Income Credit (EIC)?
What Is the EIC?
The EIC is a refundable tax credit for certain workers.
Which Employees Must I Notify About the EIC?
You must notify each employee who worked for you at any time during the
year and from whom you did not withhold income tax. However, you do
not have to notify any employee who claimed exemption from withholding
on Form W-4, Employee's Withholding Allowance Certificate.
Note: You are encouraged to notify each employee whose wages for
2013 are less than $51,567 that he or she may be eligible for the EIC.
How and When Must I Notify My Employees?
You must give the employee one of the following:
• The IRS Form W-2, Wage and Tax Statement, which has the
required information about the EIC on the back of Copy B.
• A substitute Form W-2 with the same EIC information on the back of
the employee's copy that is on Copy B of the IRS Form W-2.
• Notice 797, Possible Federal Tax Refund Due to the Earned Income
Credit (EIC).
• Your written statement with the same wording as
Notice 797.
If you are required to give Form W-2 and do so on time, no further
notice is necessary if the Form W-2 has the required information
about the EIC on the back of the employee's copy.
If a substitute Form W-2 is given on time but does not have the
required information, you must notify the employee within 1 week
of the date the substitute Form W-2 is given. If Form W-2 is
required but is not given on time, you must give the employee
Notice 797 or your written statement by the date Form W-2 is
required to be given. If Form W-2 is not required, you must notify
the employee by February 7, 2018.
You must hand the notice directly to the employee or send it by
First -Class Mail to the employee's last known address. You will
not meet the notification requirements by posting Notice 797 on an
employee bulletin board or sending it through office mail.
However, you may want to post the notice to help inform all
employees of the EIC. You can download copies of the notice at
www.irs.gov/formr)ubs. Or you can go to www.irs.gov/orderforms
to order it.
How Will My Employees Know If They
Can Claim the EIC?
The basic requirements are covered in Notice 797. For more
detailed information, the employee needs to see Pub. 596, Earned
Income Credit (EIC), or the instructions for Form 1040, 1040A, or
1040EZ.
How Do My Employees Claim the EIC?
Eligible employees claim the EIC on their 2013 tax return. Even
employees who have no tax withheld from their pay or owe no
tax can claim the EIC and get a refund, but they must file a tax
return to do so. For example, if an employee has no tax withheld
in 2013 and owes no tax but is eligible for a credit of $800, he or
she must file a 2013 tax return to get the $800 refund.
Notice 1016 (Rev. 12-2013)
Cat. No. 205991
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