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RESOLUTION NO. 2001-354
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL
APPROVING AND AUTHORIZING EXECUTION OF THE
AMENDMENT NO, 1 TO THE OCTOBER 18, 1999 COMMUNITY
DEVELOPMENT BLOCK GRANT ("CDBG") AGREEMENT BETWEEN
THE CITY OF SAN BERNARDINO AND COMMUNITY INVESTMENT
CORPORATION (CIC)
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WHEREAS, the Mayor and Common Council on October 18, 1999, approved
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Community Development Block Grant ("CDBG") Agreement by and between the City of Sa
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Bernardino (the "City") and Community Investment Corporation ("CIC") (the "Agreement") fo
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the purpose of developing a loan program entailing counseling, mentoring and coaching by CIC
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with the objective of promoting business expansion, new job opportunities and business retentio
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for City of San Bernardino small businesses (the "Program"); and
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Whereas, the Mayor and Common Council have delegated the implementation an
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administration responsibilities of the CDBG Program to the Redevelopment Agency of the Cit
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of San Bernardino (the "Agency") jncluding overseeing the administration of the CDBG
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Contract between the City and CIC.
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WHEREAS, pursuant to the Agreement and the Program Budget, the Mayor an
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Common Council allocated $250,000 for the Program as follows: $62,500 for mentoring
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coaching, counseling and administration (the "Administration Line Item") and $187,500 t
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provide small business loans (the "Loan Line Item") and the parties desire to amend (th
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"Amendment No. I") the Agreement to transfer funds from the Loan Line Item to th
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Administration Line Item in exchange for CIC providing working capital for the City Program.
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NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY 0
SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
FOLLOWS:
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2001-354
SECTION I. The Mayor and Common Council hereby approve the transferring 0
2 $102,500 from the Loan Line Item to the Administration Line Item as stated in the Amendmen
3 NO.1 attached hereto and incorporated herein by reference.
4 SECTION 2. The Executive Director of the Agency, or his or her designee (the "Agency
5 Director") is directed to insure execution of the Amendment No. I and is hereby authorized and
6 charged with the administration and implementation of the Agreement and the Amendment No. I
7 on behalf of the City.
8 SECTION 3. The Agency Director is hereby authorized to make changes, clarifications,
9 interpretations to the Agreement, provided said changes are agreed to by Agency Counsel and
10 are not substantive in nature and do not increase the financial contribution of the City pursuant to
11 the Agreement and Amendment No. I.
SECTION 4. This Resolution shall become effective immediately upon its adoption.
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2001-354
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL APPROVING AND
AUTHORIZING EXECUTION OF THE AMENDMENT NO, 1 TO THE OCTOBER 18,
1999 COMMUNITY DEVELOPMENT BLOCK GRANT ("CDBG") AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO AND COMMUNITY INVESTMENT
CORPORATION (CIC)
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an
5 Common Council of the City of San Bernardino at a j oint regular meeting thereof, he!
on the 19th day of November, 2001, by the following vote to wit:
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Council Members: Ayes Nays Abstain Absent
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ESTRADA X
8 LIEN X
9 MCGINNIS X
10 SCHNETZ -X---
SUAREZ ~
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ANDERSON X
12 MC CAMMACK
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1{ MklJf GlrvJ.;
Rachel G. Clark, City Clerk
0' JJOK1~~QJI /D1Juttj_:
The foregoing resolution is hereby approved this 21 day of November ,2001.
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Approved as to form and Legal Content:
Frank Schnetz, Mayor Pro Tern
City of San Bernardino
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21 aity Attorney
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2001-354
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AMENDMENT NO.1 TO THE COMMUNITY DEVELOPMNT BLOCK GRANT
(CDBG) AGREEMENT DATED OCTOBER 18,1999 BETWEEN THE CITY OF SAN
BERNARDINO AND COMMUNITY INVESTMENT CORPORATION (CIC)-
MICROBUSINESS LOAN PROGRAM
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THIS AMENDMENT NO. I ("Amendment No. I") dated as of this 19TH day of
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November 2001, to the Agreement, dated October 18,1999, (the "Agreement"), by and between
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the City of San Bernardino, a Municipal Corporation ("City"), and Community Investment
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Corporation, a California non-profit corporation, ("CIC") in view of the facts set forth in the
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following Recitals;
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RECITALS
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WHEREAS, the City and CIC have previously entered into the Agreement for the
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purpose of developing and implementing a loan program entailing counseling, mentoring and
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coaching by CIC with the objective of promoting business expansion, new job opportunities and
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business retention for City of San Bernardino small businesses (the "Micro Business Loan
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Program") as more specifically described in the Agreement; and;
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WHEREAS, the Mayor and Common Council have delegated the implementation and
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administration responsibilities of the CDBG Program to the Redevelopment Agency of the City
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of San Bernardino (the "Agency") including overseeing the administration of the CDBG
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Contract between the City and CIC; and
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WHEREAS, the City and crc desire to amend Sections 1,4,5 and 12 of the Agreement
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in order to transfer funds from the Loan Line Item in the remaining amount of $101,349 to the
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Administration Line Item in exchange for crc contributing not less than $200,000 from their
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own resources to make loans to San Bernardino small businesses pursuant to the Agreement and
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pursuant to Section 3 of this Amendment No.1. All other provisions of the Agreement shall
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remain unchanged and in full force and effect.
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2001-354
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
2 HEREIN SET FORTH AND THE MUTUAL BENEFITS TO BE DERIVED THEREFROM,
3 THE PARTIES HERETO AGREE AS FOLLOWS:
4 Section 1. The meaning of the words and phrases as used in this Amendment No. 1
5 shall be the same as set forth in the Agreement.
6 Section 2. CIC and the City mutually acknowledge and agree that as of the date of
7 approval of this Amendment No. I, no default exists under the Agreement, nor is either party
8 aware of any fact, with the giving of notice and the passage of time, would constitute a default
9 under the Agreement.
10 Section 3, Amendment No. 1 shall modify Section 1 (Award of Funds) of the
11 Agreement as follows: 1- Award of City Funds/CIC Business Loan
12 Commitment/Repavment of Business Loans:
13 The original 1999 Award of Funds in the amount of $250,000 shall be used to operate City's
14 Micro Business Loan Program, principally as follows:
15 $163,849 ($62,500 of this $163,849 has already been expended pursuant to the
16 Agreement) shall be used for mentoring, coaching, counseling to small businesses or borrowers,
17 administration and loan portfolio servicing and management (the "Administration Line
18 Item"). The City shall use the Administration Line Item to pay CIC monthly for their services
19 performed under the Agreement and Amendment NO.1 commencing on October 18, 1999 to
20 October 30, 2002.
21 $86,151 has been used for loans to small businesses (the "1st Revolving Loan Line
22 Item") in accordance with Exhibit 1 of the Agreement.
23 CIC agrees to contribute not less than $200,000 (the "2nd Revolving Loan Line Item")
24 of their own resources to loan to San Bernardino small businesses in accordance with Exhibit 1
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2001-354
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of the Agreement in return for the City increasing the amount of funds in the Administration
Line Item.
In totality, CIC will use both the I st Revolving Loan Line Item and the 2nd Revolving
Loan Line Item amounts of not less than $286,151 to make Business Loans during the Term of
this Agreement (the "Business Loan"). As CIC collects the Business Loan repayments of not
less than $286,151, CIC shall continue to loan said funds to qualifying San Bernardino
businesses pursuant to the Agreement. A complete full cycle of the Business Loans shall occur
when the 151 Revolving Loan Line Item and 2nd Revolving Loan Line Item of not less than
$286,151 has been fully loaned and fully repaid.
Section 5, Term of Agreement, Section 4, of the Agreement shall be modified as
follows: The Term of the Al!reement shall begin upon the date of execution of the original
Agreement, or commencing October 18, 1999 and continue thereafter for one full cycle of the
Business Loan fund of not less than $286,151, or for a period of seven (7) years, whichever
occurs first.
Section 6. Section 5, Payment of Funds, paragraph I and items a-c shall be removed
in its entirety and modified as follows: Payment of CDBG funds to CIC for operations and
loans pursuant to the Agreement and Amendment No. I will be carried out as a budgeted
expense not to exceed the amount of $250,000 awarded by the City pursuant to this Agreement.
Payments will be made by City as follows: (1) $86,151 has been disbursed by City to CIC for
Micro Business Loans; and (2) $101,349 out of$163,849 ($62,500 has been disbursed) will be
used by the City to pay CIC for mentoring, coaching assistance to inquirers, applicants and
borrowers, administration services, loan servicing and loan collection and management in
accordance with Exhibit I, Scope of Services. Section d through g of Section 5, shall become
Section a thru d. Section d (iv) shall be modified as follows: "CIC shall establish a Special and
Separate Bank Account and shall deposit all funds received by CIC from City in that account,
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2001-354
including the 2nd Revolving Loan Line Item amount being provided by CIC pursuant to Section
2 3 of this Amendment No.1. Section d (v) shall be modified as follows: CIC shall maintain said
3 Special and Separate Bank Account in such a manner as to permit the tracing of all funds
4 received by CIC from City and the 2nd Revolving Loan Line Item to their final disbursement or
5 expenditure and to permit the submittal of such reports as may be required by City concerning
6 such funds. Records shall be maintained to show the distribution of all funds referenced in
7 Section 3 of this Amendment No.1. Section d (vi) shall remain unchanged.
8 Section 7. Section 12, Amendments or Variations, of the Agreement shall be modified
9 to read as follows: No part of the Agreement or Amendment No. I shall be modified, altered,
10 amended, waived or changed without the express written consent of all parties.
11 Notwithstanding, the Executive Director of the Agency, shall be authorized to make non-
12 substantive changes, clarifications, corrections to the Agreement and this Amendment No. I,
13 including budget line item adjustments, provided such actions or changes do not increase the
14 City's Award of Funds pursuant to Section I of this Amendment No.1.
15 Section 8, This Amendment No. I shall take effect following its approval by the Mayor
16 and Common Council.
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2001-354
IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to the
2 Agreement to be executed as of the day and year first written above.
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ATTEST:
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LEGAL CONTENT:
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P:\Fomls\Housing Fonns\Housing Misc\CIC Amend Ldoc
CITY OF SAN BERNARDINO,
A Municipal Corporation
By:
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J,Htlit Valles, Mayor
('~!ty f San Bernardino
COMMUNITY INVESTMENT CORPORATION
(CIC), A CALIFORNIA NON-PROFIT
CORPORATIO~, "
By: ~*
Pat Watson, Executive Director
Sub-Recepient
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