(a) The Grant Agreement shall specify performance requirements and deliverables for the Grantee, the manner and timing of payments by the Granting Agency, eligible and prohibited reimbursements, and the Granting Agency’s remedies for default by the Grantee.
(b) Insurance. All Grant Agreements shall require the Grantee to maintain insurance for the City’s benefit, as determined by the Risk Manager. The Risk Manager shall develop insurance requirements for Grants. The Risk Manager shall review and update such insurance requirements as necessary to protect the City’s interests.
(c) Infringement Indemnity. Each Grant Agreement shall require any Grantee that provides intellectual property to the City to indemnify the City for any violation of copyright, trademark, patent, or other intellectual property rights resulting from the City’s use of that intellectual property.
(d) Assignment. Each Grant Agreement shall prohibit assignments by the Grantee, except by written instrument approved by the Granting Agency. Before granting any such approval, the Granting Agency shall determine whether the assignee is capable of performing the work set forth in the Grant Agreement, and whether the assignee satisfies all other requirements of the Grant Agreement. The Granting Agency shall notify the Controller quarterly by January 1, April 1, July 1, and October 1 of each year, commencing on April 1, 2022, of such assignments.
(e) Audit Of Grantee’s Records. Each Grant Agreement shall require the Grantee to maintain records documenting the work performed and the payments received under the Grant Agreement, and allow the City, at reasonable places and times, to audit such records. The Grant Agreement shall require the Grantee to maintain such records for five years from the date of final payment under the Grant, unless the Granting Agency authorizes a shorter period in writing. But the Grant Agreement shall also require that the Grantee shall maintain records for such period as required by federal or state funding agencies, if longer than the period required in accordance with the preceding sentence.
(f) Submitting False Claims; Monetary Penalties.
(1) Covenant of Good Faith and Fair Dealing. Each Grant Agreement shall include a covenant of good faith and fair dealing requiring Grantees at all times to act in good faith with the City and to submit claims, requests for equitable adjustments, requests for Grant modifications, or requests of any kind seeking increased compensation under a Grant, only upon a good-faith, honest evaluation of the underlying circumstances and a good-faith, honest calculation of the amount sought.
(2) Prohibition of False Claims. A Grantee shall not submit a False Claim to the City related in any manner to the Grant. Payment or reliance by the City is not required for an act to be considered a False Claim. For purposes of this subsection 21G.7(f):
(A) Submitting a “False Claim” means to:
(i) Knowingly present or cause to be presented to an officer or employee of the City a claim or request for payment or approval that is false or fraudulent;
(ii) Knowingly make, use, or cause to be made or used a false record or statement to get a claim paid or approved by the City;
(iii) Conspire to defraud the City by getting a claim allowed or paid by the City that is false or fraudulent;
(iv) Knowingly make, use, or cause to be made or used a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the City;
(v) Knowingly receive the benefit of a false claim made to the City, or receiving the benefit without knowledge of the falsity of the claim but subsequently discovering its falsity and failing to disclose the false claim to the City within a reasonable time after discovering it.
(B) A “claim” means any request or demand for money, property, or services made to any employee, officer, or agent of the City in connection with a Grant.
(C) “Known” or “knowingly” means (1) having actual knowledge of information, (2) acting in deliberate ignorance of the truth or falsity of information, or (3) acting in reckless disregard of the truth or falsity of information. “Known” or “knowingly” does not require proof of specific intent.
(3) Damages for False Claims. Any Grantee who makes a False Claim shall be liable to the City for three times the higher of (A) the amount of damages that the City sustains due to the False Claim, or (B) the amount of the False Claim. Any such Grantee shall also be liable to the City for all costs, including attorneys’ fees, of a civil action brought to recover any penalties or damages, and may be liable to the City for a civil penalty of up to $10,000 for each False Claim.
(4) Liability under this Section 21G.7(f) shall be joint and several for any False Claim made by two or more persons.
(Former Sec. 21G.7 added by Ord. 15-03, File No. 021791, App. 2/7/2003; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)