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CITY OF SAN BER'" .RDINO nEQUEST ~ JR COUNCIL ACTION
From:
.-:., ,- I:. . :-. '.' l" ,.,.....-
Kenneth J. Herrlerson, D:ired:or' ;,.: .;, SUbject:
...._n... .__ .
. . '-
"'r-,
APPRJVAL OF SM1\LL BUSINESS
umN ~ BETWEEN CITY
AND C.X. ~
Dept:
Canummity Develcpnent
, . '
t.. _ ~ ~,_ _' ~,
...F '_'::'"
Date: December 22, 1989
Synopsis of Previous Council action:
None.
Recommended motion:
AJX)PI' RESOIIJI'ION
LtHA ~t.~:1
Contact person: Ken HerdersonjNestor Nazario
Phone:
5065
Supporting data attached:
staff Report
Ward:
1
FUNDING REQUIREMENTS:
Amount: $25,000
Source: (Acct. No.) To be Created
(Acct. DescriPtion) EDP IDAN FUND
Finance:
Council Notes:
Aoenda Item No. 35
CITY OF SAN BERtt....tRDINO - REQUEST ~ JR COUNCIL ACTION
STAFF REPORT
oescriDtion of CatlDanv
C.K. Manufacturin;J is a sole proprietorship owned am operated by
Mr. Ran:3all Corey. '!he CaIpany has been in existence for four (4)
years ani is currently located at 248 S. Sierra Way, suite "E", San
Bemardino. '!he product am senrice offered by the CaIpany is
cabinets, doors, win::lows am mJldi.n;Js for buildin;J contractors am
its main contractor, circuit city, am installation of salle.
Mr. Corey has approxilnately seventeen (17) years of experience as a
cabinet maker. He has received trainin;J at IDs Angeles Trade Tech-
nical College am worked as an apprentice at Boyer I s custom Cabinet
am Furniture Center. Prior to startin;J his company, he worked as a
cabinet maker ani then as a foreman, both at cabinet making
companies. '!he CaIpany works primarily in the San Bemardino area
ani currently receives numerous contracts with in::lepen:lent buildin;J
contractors .
lWaunt and PurDose of Loan
'!he Calpany is requestin;J a loan in the annmt of $25,000 for the
follCMin;J purposes:
1. Notes Payable (Equipnent Catpany) :
2. Taxes:
3. Workirq Capital:
Total :
$ 5,000
$10,000
$10.000
$25.000
Rate and '1'enn
'!he loan of $25,000 will be for a pericxi of eight (8) years at a
interest rate of six percent (6%).
Collateral
'!he CaIpany is offerin;J personal property (real estate) worth
approxilnately $69,000 ($49,000 real estate mJrtgage): $35,000
worth of furniture am fixtures, am: business equipnent worth
approxilnately $23,000.
Job Creation
within the last two (2) mJnths, the Calpany has hired two (2) new
errployees to a current level of six (6) errployees. '!he Can'pany
anticipates hirin;J another five (5) errployees within the next five
(5) years.
12/21/89
75-0264
C.R. ~
Staff Report COntinued...
Paqe -2-
Reccmnendation
'!he Ecx:mc:.mic Developnent Program Ccmnittee (EDPC) has reviewed am
evaluated this reques for financial assistance. '!he initial
~1U.erdation by the EDPC was for the client to provide addi-
tional collateral, reduce debt service am reduce the total finan-
cial assistance requested fran $35,000 to $25,000. SUbsequently,
staff has verified that all conlitions set forth by the EDPC are
in place am action reccmnerrli.rg approval of this small business
loan application in the ancunt of $25,000 is bei.n:J recommended to
the Mayor am Camlon Council.
I recommend adoption of the resolution.
~f4At:l_
KnJ/NN/lab/3598
attachments
12/22/89
1
RESOLUTION NUMBER
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND
DIRECTING THE EXECUTION OF A SMALL BUSINESS LOAN AGREEMENT
3 BETWEEN THE CITY OF SAN BERNARDINO AND C.K. MANUFACTURING.
4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
5
6
7
section 1.
The Mayor of the City of San Bernardino is hereby authorized
to execute, on behalf of the City of San Bernardino, a loan
8
agreement with C.K. Manufacturing, which loan agreement is
9
attached hereto as Exhibit "1" and is incorporated herein by
10
reference as though fully set forth at length. The agreement
11
provides for the loaning of funds from the small business loan
12
program in the amount of $25,000.00.
13
14
15
16
17
18
Section 2.
The authorizations to execute the above referenced agreement
is rescinded if the parties to the agreement fail to execute same
within sixty (60) days of the passage of this resolution.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
meeting thereof, held on the
, 1990, by the following vote to
IIII
.1
RESOLUTION O. fHE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF A SMALL BUSINESS LOAN AGREEMENT WITH
C.K. MANUFACTURING.
1
2
3
4
5
6
7
8
9
10
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14
15
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AYES:
councilpersons
NAYES:
ABSENT:
CITY CLERK
The foregoing resolution is hereby approved this
day
of
, 1990.
W.R. HOLCOMB, MAYOR
City of San Bernardino
Approved as to form and
legal content:
JAMES F. PENMAN,
City Attorney
(' I
,.#If :::J /,
BY: ~~~ /'iI~~
/.
(/'
KJH/lab/3599
2-21-89
.2
"
CITY OF SAN BERNARDINO
COMMUNITY DEVELOPMENT DEPARTMENT
"Economic Development Program"
(IDB-Financed)
BORROWER:
RANDALL A. AND WENDY L. COREY, dba: C.K. MANUFACTURING
PROJECT TITLE: BUSINESS EXPANSION
PROJECT ADDRESS: 248 SOUTH SIERRA WAY. SUITE "E"
SAN BERNARDINO, CA 92408
LOAN IS NUMBER 89-10
DEPARTMENT CONTRACTS.
OF COMMUNITY DEVELOPMENT
KJH/lab/0256
EXHIBIT "I"
section
Number
SECTION I
S101.
S102.
S103.
S104.
S105.
SECTION II
S201.
S202.
S203.
S204.
r
TABLE OF
QQl!~~l!~Jl
(IDB-Financed)
Title
PARTIES, TERMS, CONDITIONS PRECEDENT
AND INDEPENDENT STATUS
Parties to the Agreement
Representatives of the Parties and
Service of Notices
Term of this Agreement
Conditions Precedent
Independent Contractor Status of
the Borrower
PURPOSE OF AGREEMENT AND LOAN, LOAN
TERMS, AND PROMISSORY NOTE
Purpose of the Agreement
Purpose of the Loan
Terms of the Loan
Promissory Note
SECTION III REPRESENTATIONS AND COVENANTS OF
BORROWER, AND DEFAULT
S301.
S302.
S303.
SECTION IV
S401.
S402.
S403.
S404.
Representations of the Borrower
Covenants of the Borrower
Default
REPORTS, RECORDS AND AUDITS
Reporting Requirements
Maintenance of Records
Audits and Inspections
Validity of Financial Documentation
Submissions
i
Paqe
2
2
3
3
3
4
4
4
5
6
7
9
10
11
11
12
section
Number
5405.
5406.
SECTION V
5501.
5502.
5503.
5504.
5505.
5506.
5507.
5508.
5509.
5510.
5511.
5512.
5513.
5514.
5515.
5516.
5517.
TABLE OF CONTENTS (Cont...)
(lOB-Financed Agreement)
Title
Paqe
Release of Funds from Escrow
12
Reconveyance Fee
12
GENERAL TERMS AND CONDITIONS
Indemnification and Insurance
Requirements
12
14
14
14
14
15
16
16
17
17
17
17
Plan
Prohibition Against Assignment
Limitation of Corporate Acts
Amendments and Waivers
Compliance with 5tatutes and
Regulations
Conflict of Interest
Political Activity Prohibited
Lobbying Prohibited
Installation of Financial Assistance
5ign
Press Releases
Discrimination Prohibited
Nondiscrimination, Equal Employment
Practices, and Affirmative Action
Employment Opportunities for Business 17
and Lower Income Persons
Participation of Minorities, Women and 19
5mall Businesses
Captions 19
Effect of Legal Judgment 19
Choice of Law Governing this Agreement 19
ii
Section
Number
5518.
5519.
SECTION VI
5601.
5602.
KJH/lab/0257
TAb~E OF CONTENTS (Continued...)
(IDB-Financed Agreement)
Title
Prohibition of Legal Proceedings
Rights and Remedies
ENTIRE AGREEMENT
Complete Agreement
Number of Pages and Attachments
Execution (Signature) Page
ATTACHMENTS
Attachment I -- Employment Action Plan
Attachment II -- Insurance Requirements
iii
Paqe
19
19
19
20
21
AGREEMENT NUMBER 89-10
(lOB-Financed)
BETWEEN THE CITY OF SAN BERNARDINO AND 'DIU RANDALL A. AND WENDY L.
COREY, dba: C. K. MANUFACTURING
(RELATING TO) THE
PROJECT
WORKING CAPITAL FOR CUSTOM CABINETS AND FURNITURE
------------------------------------------------------------------
THIS
City of San
"City", and
hereinafter
AGREEMENT is made and entered into by and between the
Bernardino, a municipal corporation, hereinafter call
RANDALL A. AND WENDY L. COREY, dba: C.K. MANUFACTURING
called the "Borrower".
!:I~~~~~~~H
WHEREAS, the City has entered into a Grant Agreement with
the United States Department of Housing and Urban Development,
hereinafter called the Grantor, pursuant to Title I of the Housing
and Community Development Act of 1974, as amended, hereinafter
referred to as HCDA, to address the community development needs of
the City; and
WHEREAS, the Community Development Department, hereinafter
called the "CDD" , has been designated by the City to provide for
proper planning, coordination and administration of the City's pro-
grams as described in the City's Grant Agreement with the Grantor,
and of certain projects funded by the City; and
WHEREAS, the CDD cooperates with private individuals and
organizations, other agencies of the City and agencies of other
governmental jurisdictions in carrying out certain functions and
programs which are its responsibility; and
WHEREAS, the Small Business Revolving Loan Fund program has
been established by the City as part of a City of San Bernardino
Economic Development Program ("EDP"), and has been approved by the
San Bernardino Mayor and Common Council; and
WHEREAS, the project which is the subject of this agreement
meets the requirements of the above described program; and
WHEREAS, Borrower has applied to the City for a loan to help
finance the project; and
WHEREAS, the City is willing to lend monies to the Borrower
on the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of and in reliance upon the
foregoing and upon the covenants, agreements, representations and
warranties herein contained, the City and the Borrower agree as
follows:
SMALL BUSINESS LOAN ~REEMENT
lOB-Financed
Page -2-
SECTION I.
PARTIES. TERM. CONDITIONS PRECEDENT. AND INDEPENDENT STATUS
S101. Parties to the Aqreement.
The parties to this Agreement are:
1) The City of San Bernardino, a municipal corporation,
having its principal office at 300 North "0" Street, San
Bernardino, California 92418.
2) The Borrower, RANDAIJ.. A. AND WENDY L. COREY, dba: C.K. MANUFA<;TURING'
having its principal address at 248 SOUTH SIERRA WAY
SUITE "E", SAN BERNARDINO, CA 92408
The Borrower is (a) SOLE PROPRIETORSHIl>
(fictitious name enterprise, individual, California
Corporation/general partnership/limited partnership.)
S102. Representatives of the Parties and Service of Notices.
The representatives of the respective parties who are
authorized to administer this Agreement and to whom formal
notices, demands and communications shall be given are as
follows:
1) The representative of the City shall be, unless other-
wise stated in the Agreement:
Hr. Kenneth J. Henderson, Director
community Development Department
300 North "0" street, Fifth Floor
San Bernardino, CA 92418-0001
2) The representative of the Borrower shall be:
HR. RANDAIJ.. A. COREY IHRS. WENDY L. COREY
dba: C.K. MANUFACTURING
248 SOURTH SIERRA WAY, SUITE "E"
SAN BERNARDINO, CA 92408
3) Formal notices, demands and communications to be given
hereunder by either party shall be made in writing and
may be effected by personal delivery or by registered or
certified mail, postage prepaid, return receipt reques-
ted and shall be deemed communicated as of the date of
mailing.
4) If the name of the person designated to receive the
notices, demands or communications or the address of
such person is changed, written notice shall be given,
in accord with this section, within five (5) working
days of said change.
SMALL BUSINESS LOAN ,REEMENT
lOB-Financed
Page -3-
S103. Term of this Aqreement.
This Agreement shall remain in full force and effect from
the date of execution by Borrower of the Promissory Note,
until such time as said Promissory Note is paid according to
its terms, subject to the provisions of S303 herein.
S104. Conditions Precedent.
A. Prior to the execution of this Agreement, the Borrower shall
submit to the City for approval in writing an Affirmative
Action Program Plan in accordance with Section 512 herein.
B. In the event that Borrower is a corporation, then prior to
the execution of this Agreement, the Borrower shall provide
the City with copies of the following documents:
1) Borrower's Articles of Incorporation, and all amendments
thereto, as filed with the Secretary of State.
2) Borrower's By-Laws, and all amendments thereto, as adop-
ted by the Borrower and properly attested.
3) Resolutions or other corporate actions of the Borrower's
Board of Directors, properly attested or certified,
which specify the.name(s) of the person(s) authorized to
obligate the Borrower and execute contractual documents.
4) Certificate of Good Standing from California Secretary
of State.
C. In the event that Borrower is a partnership, then prior to
the execution of this Agreement, the Borrower shall provide
the City with copies of the Borrower's Partnership Agree-
ment, and evidence of filing thereof with appropriate filing
official.
D. In the event the Borrower is an individual doing business
under fictitious name, a copy of the Fictitious Name state-
ment and evidence of the proper filing thereof.
8105. Independent Contractor status of the Borrower.
The parties agree that the Borrower is an independent con-
tractor and that no employees of the Borrower have been,
are, or shall be employees of the City by virtue of this
Agreement, and the Borrower shall so inform each employee
organization and each employee who is hired or retained by
it.
SMALL BUSINESS LOAN
lOB-Financed
Page -4-
,REEMENT
SECTION II.
PURPOSE OF AGREEMENT AND LOAN. LOAN TERMS. AND PROMISSORY NOTE
S201. PurDose of the Aareement.
The purpose of this Agreement is to provide TWENTY-FIVE
THOUSAND AND 00/100--------------------------------------------00LlJURS
($ 25.000.00 ) of EDP funds to be loaned by the City to the
Borrower, hereinafter called the "Loan", for the purpose and
under the terms and conditions set forth herein.
S202. PurDose of the Loan.
The purpose of the Loan is to provide financial assistance
to enable the Borrower to:
OBTAIN WORKING CAPITAL:
ELIMINATE TAX LIABILITIES:
REDUCE NOTES PAYABLE- (of $7.500):,
$10.000.00
$10.000.00
$ 5.000.00
$25.000.00
S203. Terms of the Loan.
A. The City agrees to lend the Borrower, and the Borrower
agrees to borrow from the City, an amount not to exceed
TWENTY-FIVE THOUSAND AND 00/100--------------00LlJURS, ($ 25.000.00 ),
such transaction hereinafter referred to as the "Loan". The
Loan is to be evidenced by, and made against delivery of a
Promissory Note executed by the Borrower, hereinafter called
the "Note" and by this reference incorporated herein.
B. The Note shall (i) be dated as of the closing, (ii) bear
interest on the unpaid principal at the rate of SIX PERCENT
( 6'Z. ) per annum, (iii) be for a term of EIGHT
(8 ) years, and (d) provide for payment of the principal
amount thereof and the interest thereon in NINTY-SIX ---------
RMALL BUSINESS LOAN
lOB-Financed
Page -5-
REEMENT
(96 ) equal monthly installments of THREE-HUNDRED. TWENTY-EIGHT
AND 00/100--------------------------------___________________ DOLLARS
($ 328.54 ), each including principal and interest, and
continuing until said principal and interest are paid in
full.
C. Each monthly installment shall be applied first to the
payment of interest then accrued to the date the payment is
received, and the balance, if any, to the reduction of the
principal.
8204. Promissory Note.
A. The obligation of the City to make the Loan is subject to
receipt by the City of the Note and, at the City's sole
discretion, to the following additional conditions prece-
dent:
1) The representations and warranties made herein by the
Borrower shall be true and correct at the time of
consideration by the Mayor and Common Council of the
City of San Bernardino with the same effect as though
made at the closing.
2) Receipt by the City from the Borrower of all executed
documents in connection with this Agreement; satisfac-
tory in form and substance to the city.
3) If matching funds constitute a part of this Agreement,
then Borrower shall obtain matching funds in an amount
equal to the amount of this loan and, as required by the
City, deposit said matching funds into an account with
N/ A Escrow Agency.
4) The City and the Borrower have mutually agreed to the
terms and conditions as set forth in the Employment
Action Plan, which is attached hereto as Attachment I
and by this reference is incorporated herein.
B. The Note is to be secured as follows:
1. REAL ESTATE (RESIDENTIAL) ESTIMATED "EQUITY" MARKET VALUE $20,000.
2. COMMERCIAL EQUIPMENT ESTIMATED VALUE $23,000.
3. PERSONAL GUARANTEE
4. FURNITURE AND FIXTURES (IF REQUIRED/REQUESTED) PLUS ADDITIONAL
EQUIPMENT VALUED AT $35,000.00.
C. Borrower shall have the right, without penalty, to prepay
the Note together with the accrued interest thereon as of
the date of such prepayment.
SMALL BUSINESS LOAN ,REEHENT
lOB-Financed
Page -6-
D. The Borrower acknowledges and agrees that the amount being
provided under this loan shall be for a total of TWENTY-FIVE
THOUSAND AND 00/100-----------------------------------------DOLLARS,
($ 25,000.00), and that no additional funds to cover addi-
tional projects costs, anticipated or unanticipated, incur-
red as a result of cost overruns or expenses in financing
this project, are available under this Agreement.
SECTION III.
REPRESENTATIONS AND COVENANTS OF BORROWER. AND DEFAULT
S301. Representations of the Borrower.
To induce City to enter into this Agreement, Borrower cove-
nants and represents to City that:
1) The execution, delivery and performance of the Note and
this Agreement by Borrower have been duly authorized by
Borrower. This Agreement constitutes a legal, valid and
binding obligation of Borrower, enforceable in accord-
ance with its terms. The execution and delivery of this
Agreement and the note, and consummation of the transac-
tions herein contemplated, will not conflict with, or
result in a breach of, any of the terms, provisions or
conditions of any. indenture, contract, instrument or
agreement, including any partnership agreement, to which
Borrower or any of its officers is a party. No appro-
val, consent or authorization of any governmental
authority is necessary for the execution, delivery or
performance by the Borrower of this Agreement or of any
of the terms and conditions.
2) Borrower has good and marketable title to the real pro-
perty identified in S204B of this Agreement, located at
248 SOUTH SIERRA WAY, SUITE E , San
Bernardino, California, and it is free and clear from
all liens except as set forth herein:
23841 BOWL ROAD
CRESTLIRE, CALIFORNIA 92325
3) Borrower is in compliance with all applicable statutes,
laws, regulations, and executive orders of the United
states of America and all states, foreign countries,
other governmental bodies and agencies having jurisdic-
tion over its business or properties, including (without
limitation) all tax laws and Borrower has not received
notice of any violation of such statutes, laws, regula-
tions or orders which have not been remedied prior to
the date of this Agreement. Borrower possesses all
licenses, tradenames, trademarks, and permits as are
required for conduct of its business without conflict
with the rights of others.
SMALL BUSINESS LOAN AGREEMENT
IDB-Financed
Page -7-
D. There is not pending or threatened against Borrower, or any
of its officers, any actions, suits, proceedings or investi-
gations at law or in equity or before or by any federal,
state, municipal or governmental department, commission,
board, bureau, agency or instrumentality which, if deter-
mined adversely, would be likely to have a materially ad-
verse effect on the business or properties of Borrower.
E. Each and every financial statement, document and record
delivered by Borrower to the City in connection with this
Agreement and the proposed transaction hereunder is a true
and complete copy of said financial statement, document or
record, and fairly and accurately reflects the information
it purports to portray. There has been no change in the
condition, financial or otherwise, of Borrower as shown in
the financial statements dated SEPTEMBER 30. 1989 ,
except changes in the ordinary course of business, none of
which, individually or in the aggregate, has been materially
adverse.
8302. Additional Covenants of the Borrower.
Borrower covenants and agrees that, from the date hereof,
until payment in full on the Note and the interest thereon,
that it will:
1) Pay the principal and interest on the Note according to
its terms.
2) Pay any other amounts that may be due or become due and
owing to the City under or pursuant to the terms of this
Agreement or the Note.
3) Execute and deliver all instruments, and perform such
acts, as the City may reasonably deem necessary or de-
sireable to confirm and secure to the City all rights
and remedies conferred upon the City by the terms of
this Agreement and Note.
4) In the event that Borrower shall grant the City a se-
curity interest in Real Property as collateral under
S204(B) herein, then Borrower agrees to maintain at
Borrower's sole expense a policy of title insurance
coverage equal to the amount of the loan.
5) Give notice to the City of any event that constitutes an
Event of Default as set forth in Section 303 of this
Agreement or that would, with notice, or lapse of time
or both, constitute an Event of Default under this
Agreement. Notice shall specify the nature of such
Event of Default.
SMALL BUSINESS LOAN .REEMENT
IDB-Financed
Page -8-
6) Not enter into any agreement or other commitment the
performance of which would constitute a breach of any of
the covenants contained in this Agreement.
7) Use the Loan proceeds only for the purposes stated in
this Agreement and for no other purpose or purposes.
8) Observe all applicable federal, state and local statutes
and regulations as well as City of San Bernardino Ordi-
nances as further defined and set forth in Section 505
of this Agreement.
9) In the event that Borrower is a corporation, then Bor-
rower shall do or cause to be done all things necessary
to preserve and keep in full force and effect its corpo-
rate existence, rights and franchises.
10) Not violate any laws, ordinances, governmental rules or
regulations to which it is subject and not fail to ob-
tain any licenses, permits, franchises or other govern-
mental authorization necessary to conduct its business,
which violation or failure to obtain might have a mate-
rial adverse effect on the business, prospects, profits
or condition (financial or otherwise) of Borrower.
11) Submit an Annual Employment Report on or before the fif-
teenth (15th) day of June for the year(s) 1990-2000
. The Annual Employment Report shall de-
tail Borrower's compliance with the Employment Action
Plan, Attachment I attached hereto and by this reference
incorporated herein, for the preceding twelve (12) month
period.
12) Maintain adequate insurance with respect to the col-
lateral and the (proprietorship, partnership or cor-
porate) business which is the subject of this Agreement,
with reputable insurance companies. The Borrower shall
maintain insurance in such amounts and against such
risks as is customary with companies in the same or
similar business; in addition, said insurance cover-
ages(s) shall be in accordance with the general insur-
ance provisions of this Agreement as specified in
S501(B) (5), including fire, hazard and general compre-
hensive liability insurance, worker's compensation, con-
struction/rehabilitation liability, to protect such bus
iness and all property securing the City's loan. Said
insurance shall be maintained throughout the term of
this loan. The City shall be named as an additional
insured, and the policy or policies shall not be subject
to cancellation, reduction or nonrenewal without thirty
(30) days prior written notification to the City Attor-
ney by certified mail.
SMALL BUSINESS LOAN ~REEMENT
lOB-Financed
Page -9-
13) Pay all indebteness and obligations promptly in accord-
ance with normal terms and promptly pay and discharge or
cause to paid and discharged all taxes, assessments and
governmental charges or levies imposed upon it or upon
its income and profits or upon any of its property,
real, personal or mixed, or upon any part thereof, re-
spectively, before the same shall become in default.
S303. Default.
A. The entire unpaid principal of the Note, and interest then
accrued thereon, shall become and be forthwith due and pay-
able upon written demand by the city or the City's assigns,
without any other notice or demand of any kind or any pre-
sentment or protest, if anyone of the following events
(herein called an "Event of Default") shall occur and be
continuing at the time of such demand, whether voluntarily
or involuntarily, or, without limitation, occurring or
brought about by operation of law or pursuant to or in
compliance with any judgment, decree or order of any court
of any order, rule or regulation or any governmental body,
provided however that such sum shall not be payable if
Borrower's payments have been expressly extended by the City
or the City's assigns. "Events of Default" shall include:
1) Payment of any installment of principal or interest on
the Note is not paid when due and such payment remains
unpaid for thirty (30) days.
2) Borrower fails to pay when due, or declared due, the
obligations secured under this Agreement.
3) Borrower fails to perform or comply with any terms,
conditions, or covenants as provided in this Agreement
or in any instruments securing or related to this Agree-
ment.
4) If any representation or warranty made by the Borrower
in this Agreement shall prove to be untrue in any mate-
rial respect, or if any report, financial statement or
financial schedule or other instrument delivered under
or pursuant to this Agreement or the transactions con-
templated herein, to the City or to any other holder of
the Note shall prove to be untrue in any material re-
spect as of the date as of which made.
5) A court enters a decree or order for relief in respect
of the Borrower in an involuntary case under any appli-
cable bankruptcy, insolvency or other similar law now or
hereafter in effect, or appoints a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar
official) of the Borrower or for any substantial part of
~ .
SMALL BUSINESS LOAN
ZDB-Financed
Page -10-
~EEMENT
its property, or orders the winding up or liquidation of
its affairs and such decree or order remains unstayed
and in effect for a period of sixty (60) consecutive
days.
6) The occurrence (i) of Borrower's becoming insolvent or
bankrupt, or ceasing, being unable, or admitting in
writing its inability to pay its debts as they mature,
or making a general assignment for the benefit of, or
entering into any composition or arrangement with credi-
tors: (ii) of proceedings for the appointment of a re-
ceiver, trustee or liquidator of Debtor, or of a sub-
stantial part of its assets, being authorized or insti-
tuted by or against it: or (iii) of proceedings under
any bankruptcy, reorganization, readjustment of debt,
insolvency, dissolution, liquidation or other similar
law of any jurisdiction being authorized or instituted
by or against the Borrower.
7) A cessation or substantial reduction of operations in
the business which is the subject of this Agreement
under circumstances indicative to the City of a lack of
intention or ability to provide continuing employment
and economic benefits for the area in which the business
is located.
8) Failure to submit the Annual Employment Report referred
to in 5302(12) within ninty (90) days of the scheduled
due date for said Report.
9. The loss, theft, substantial damage, destruction, aban-
donment, sale or encumbrance to or of any of the colla-
teral securing payment of the Note, in any manner not
fully covered by insurance, or the making of any levy,
seizure or attachment thereof or thereon.
B. If Borrower shall at any time default in making any payment
of principal or interest on the Note, Borrower shall to the
full extent permitted by law, pay to the City or other
holder of the Note, in addition to any other amounts that
may be due from Borrower to such holder, an amount equal to
the reasonable costs and expenses incurred by such holder,
in its efforts to protect its collateral, secure payment,
or otherwise defend its interests hereunder in any judicial
or administrative proceeding.
SECTION IV.
REPORTS. RECORDS AND AUDITS
8401. Reoortina Reauirements.
A. At such times and in such forms as the City may require,
there shall be furnished to the City such statements,
I
SHALL BUSINESS LOAN iREEMENT
IDB-Financed
Page -11-
records, reports, data and information as the City may
request pertaining to matters covered by this Agreement.
B. Borrower will provide its financial and accounting state-
ments to the City for the period ending DECEMBER 31. 1989
and annually thereafter during term of this Agreement, but
not later than three (3) months following the expiration of
any such period, and at each other time and in such form as
the City may prescribe.
S402. Maintenance of Records.
A. Records, in their original form, shall be maintained in
accordance with the requirements prescribed by the Grantor
and the City with respect to all matters covered by this
Agreement. Such records shall be retained for a period of
six (6) years after termination of this Agreement and after
all other pending matters are closed. "Pending Matters" in-
clude, but are not limited to, an audit, litigation, or
other actions involving records. The City may, at its dis-
cretion, take possession of and retain said records.
B. Records in their original form pertaining to. matters covered
by this Agreement shall at all times be retained within the
City of San Bernardino, or some other location specifically
authorizing in writing by the Director of Community Develop-
ment, unless authorization to remove them is granted in
writing by the City.
S403. AUdits and Inspections.
A. At any time during normal business hours and as often as the
Grantor, the u.S. Comptroller General, Auditor General of
the State of California or the City may deem necessary, the
Borrower shall make available to the City for examination,
all of its records with respect to all matters covered by
this Agreement. The City, Auditor General of the state of
California, Grantor, and the U.S. Comptroller General shall
have the authority to audit, examine and make excerpts or
transcripts from records, including all contracts, invoices,
materials, payrolls, records of personnel, conditions of
employment and other data relating to all matters covered by
this Agreement.
B. The City shall have the authority to make physical inspec-
tions and to require such physical safeguarding devices as
locks, alarms, safes, fire extinguishers, sprinkler system,
etc., to safeguard property and/or equipment funded or secu-
red by this Agreement. Notwithstanding such inspection
authority, Borrower is soley responsible for the provision
of security and for the safe guarding of the business and
its property.
SMALL BUSINESS LOAN ~REEMENT
lOB-Financed
Page -12-
S404. Validity of Financial Documentation SUbmissions.
Financial reports required to be prepared and submitted by
the Borrower to the City shall be accurate and correct in
all respects.
S405. Release of Funds from Escrow.
A. All loan proceeds shall be deposited into an escrow account
with an escrow company designated by the city. Disbursement
of funds shall be jointly authorized by the Borrower and the
city. Each disbursement shall be in accordance with 5202
"Purpose of the Loan" and shall be properly supported by
invoices, vouchers, executed payrolls, time records or other
documentation evidencing an expenditure and/or encumbrance
of funds.
B. The costs associated with the loan such as escrow fees,
credit reports (TRW) , title reports, or other similar costs
shall be delineated in the escrow instructions and disbursed
from the loan proceeds upon opening of the escrow account.
S406. Reconvevance Fee
In the event that real property is used to secure this Loan,
then Borrower agrees to pay any costs incident to title re-
conveyance, including, if applicable, trustee's fees, attor-
ney fees, document preparation fees, recording fees or any
other related expenses.
SECTION V.
GENERAL TERMS AND CONDITIONS
8501. Indemnification and Insurance Reauirements.
A. Indemnification:
The Borrower undertakes and agrees to defend, indemnify and
hold harmless the City and any and all of the City's offi-
cers, agents, employees, assigns, and successors in interest
from and against all suits and causes of action, claims,
cost of litigation, damage or liability of any nature what-
soever, for death or injury to any person, including Bor-
rower's employees and agents, or damage or destruction to
any property of either party hereto or third persons in any
manner arising by reason of or incident to the performance
of this Agreement on the part of the Borrower or subborrower
any tier whether or not contributed to by any act or ommis-
sion, active or passive, negligent or otherwise, except for
the sole negligence of the City, or the sole negligence of
any of the City's officers, agents or employees. City ap-
SMALL BUSINESS LOAN ~REEMENT
lOB-Financed
Page -13-
proval of the Borrower's performance, or failure to object,
shall be no defense to Borrower concerning its undertaking
herein to defend and indemnify City and others.
B. Insurance:
1) The Borrower shall provide and maintain at its own ex-
pense throughout the term of this Agreement the insur-
ance requirements specified herein. Evidence of insur-
ance shall be submitted for approval by the City. The
City special endorsement forms, referenced hereto and
incorporated by reference, are the preferred form of
evidence of insurance. Alternatively, Borrower may
submit two (2) certified copies of the full policy con-
taining the appropriate cancellation notice language and
additional insured/loss payee language as specified.
2) No release of funds from the Escrow Account shall be
made to the Borrower until such time as the Borrower has
complied with all insurance and bonding requirements
under this Agreement. The City's Additional Insured
Endorsement form, or a form approved by the City, stat-
ing that the Borrower is so insured, must accompany any
demand for funds unless said form has been previously
submitted and approved by the City. (Certification of
insurance shall be procured, filed and approved in
strict compliance with City rules and regulations.)
3) With respect to the interests of the City, such insur-
ance shall not be cancelled, reduced in coverage or
limited or non-renewed, except after thirty (30) days
written notice by receipted delivery has been given to
the Office of the City Attorney, City Hall, 300 North
"0" street, San Bernardino, CA 92418-0001. Policies of
insurance and fidelity bonds, except for policies cover-
ing Worker's Compensation and Employees' and Volunteer's
Owned and/or Leased Vehicles, shall name the City as an
Additional Insured and said endorsements or other evi-
dence of insurance shall so indicate. Fidelity bonds
shall name the City as loss payee or additional insured.
In the event of any cancellation, non-renewal, reduction
or limitation of coverage, or notice that such will be
effected, City may, but is not required to, obtain insu-
rance to protect its interests, in which event the cost
thereof shall be reimbursed by Borrower forthwith. Any
failure to forthwith reimburse such expense shall con-
stitute an Event of Default.
4) The City reserves the right at any time during the term
of this Agreement to change the amounts and types of
insurance required hereunder by giving Borrower ninty
(90) days written notice.
~
SMALL BUSINESS LOAl .~REEMENT
lOB-Financed
Page -14-
5. The Borrower shall maintain minimum insurance coverages
prescribed in Attachment II of this Agreement, which by
this reference is incorporated herein.
S502. Prohibition Aqainst Assiqnment.
A. The Borrower shall not assign this Agreement, nor assign or
transfer any interest or obligation in this Agreement (whe-
ther by assignment or novation) without prior written con-
sent of the city. No part of the property securing this
Agreement shall be assigned or transferred (except sales of
inventory in the ordinary course of business), nor shall
such property be pledged, without the prior written consent
of city.
B. The Borrower shall not enter into any agreement with any
other party under which such other party shall become the
recipient of claims due or to become due to the Borrower
from the City without prior written consent of the city.
S503. Limitation of CorDorate Acts.
In the event that Borrower is a corporation then the Bor-
rower shall not amend its Articles of Incorporation or By-
Laws, move to dissolve, transfer any assets derived from
funds provided under this Agreement, or take any other steps
which may materially affect its operations within the per-
formance of this Agreement without first notifying the City
in writing. The Borrower shall notify the City immediately
in writing of any change in the Borrower's corporate name.
8504. Amendments and Waivers.
This Agreement may not be changed or amended orally, and no
waiver hereunder may be oral, but any change or amendment
hereto or any waiver hereunder must be in writing and signed
by the party or parties against whom such change, amendment,
or waiver is sought to be enforced.
S505. ComDliance with statutes and Requlations.
A. The Borrower warrants and certifies that in the performance
of this Agreement, it shall comply with all applicable staa-
tutes, rules, regulations and orders of the United states,
the state of California, the County and City of San Bernar-
dino, including laws and regulations pertaining to labor,
wages, hours and other conditions of employment and the
City'S anti-discrimination provisions and Affirmative Action
Plan which by this reference is incorporated herein. Bor-
rower further warrants and certifies that it shall comply
with new, amended, or revised laws, regulations, and/or
procedures that apply to the performance of this Agreement,
upon being provided notice thereof.
SMALL BUSINESS LOAN ~REEMENT
lOB-Financed
Page -15-
Borrower covenants that the Davis-Bacon Act as amended, the
Contract Work Hours and Safety Standards Act, and the Cope-
land "Anti-Kickback Act" shall be a part of all construction
contracts awarded by the Borrower pursuant to this Agreement
and all subcontracts thereto.
8506. Conflict of Interest.
A. The Borrower covenants that none of its directors, officers,
employees, or agents shall participate in selecting subcon-
tractors, or administering subcontracts supported (in whole
or in part) by federal funds where such person is a direc-
tor, officer, employee or agent of the subcontractor, or
where such person knows or should have known that:
1) A member of such person's immediate family, or partner,
or organization has a financial interest in the subcon-
tract~
2) The subcontractor is someone with whom such person has
negotiated or is negotiating any prospective employment,
or~
3) The participation of such persons would be prohibited by
the California Political Reform Act, California Govern-
ment Code Section 87100 et seg., if such person were a
public officer, because such person would have a "finan-
cial or other interest" in the subcontract.
B. Definitions:
1) The term "immediate family" includes, but is not limited
to, those persons related by blood or marriage, such as
husband, wife, father, mother, brother, sister, son,
daughter, father-in-law, motherin-Iaw, brother-in-law,
son-in-law and daughter-in-law.
2) The term "financial or other interest" includes, but is
not limited to:
(a) Any direct or indirect financial interest in the
specific contract, including a commission or fee, a
share of the proceeds, prospect of a promotion or
future employment, a profit, or any other form of
financial reward.
(b) Any of the following interests in the subcontracting
entity: partnership interest or other beneficial
interest of five percent (5%) or more of the stock~
employment in a managerial capacity~ or membership
on the board of directors or governing body. This
provision shall not apply to serving on the board or
governing body of a non-profit corporation for which
no salary is paid or other compensation.
. SMALL BUSINESS LOAN .REEMENT
IDB-Financed
Page -16-
C. The Borrower further covenants that no officer, director,
employee or agent shall solicit or accept gratuities, fa-
vors, or anything of monetary value, from an actual or po-
tential subcontractor, supplier, a party to a subagreement,
(or persons who are otherwise in a position to benefit from
the actions of any officer, employee or agent).
D. The Borrower shall not subcontract with a former director,
officer, or employee within a one (1) year period following
the termination of the relationship between said person and
the Borrower.
E. Prior to obtaining the City's approval of any subcontract,
the Borrower shall disclose to the City any relationship,
financial or otherwise, direct or indirect, of the Borrower
or any of its officers, directors or employees of their im-
mediate family with the proposed subcontractor and its offi-
cers, directors or employees.
F. For further clarification of the meaning of any of the terms
used herein, the parties agree that references shall be made
to the guidelines, rules and laws of the City of San Bernar-
dino, state of California, and federal regulations regarding
conflict of interest.
G. The Borrower warrants that it has not paid or given and will
not payor give to any third person any money or other con-
sideration for obtaining this Agreement.
H. The Borrower covenants that no member, officer, employee of
Borrower shall have any interest, direct or indirect, in any
contract or subcontract of the proceeds thereof for work to
be performed in connection with this project during hiS/her
tenure as such employee, member or officer or for one (1)
year thereafter.
I. The Borrower shall incorporate the foregoing subsections of
this section into every agreement that it enters into in
connection with this project and shall substitute the term
"Subcontractor" for the term "Borrower" and "Sub-contractorll
for "Subcontractorll.
S507. Political Activitv Prohibited.
None of the funds, materials, property or services provided
directly or indirectly under this Agreement shall be used
for any partisan political activity, or to further the elec-
tion or defeat of any candidate for public office.
8508. LObbvinq Prohibited.
None of the funds provided under this Agreement shall be
used for any purpose designed to support or defeat any pend-
ing legislation or administrative regulation.
SMALL BUSlNES8 LO~' ~REEMENT
lOB-Financed
Page -17-
8509. Installation of Financial Assistance Plan.
The Borrower shall install, or cause to be installed, for
public display upon the project premises a sign, with design
approved by City, identifying the Borrower as receiving
financial assistance from the city, if such a sign is re-
quested by the Director of Community Development Department.
8510. Press Releases.
In all communications with the press, television, radio or
any other means of communicating with the general community,
the Borrower shall make specific reference to the City of
San Bernardino Community Development Department as the spon-
soring agency of the project.
S511. Discrimination Prohibited.
No person shall on the grounds of race, religion, ancestry,
color, national origin, sex, age, or physical handicap, be
excluded from participation in, be denied the benefit of, or
be subjected to discrimination under this program/project.
For purposes of this Section, Title 24, Code of Federal Re-
gulations Section 570.601(b) defines specific discriminatory
actions which are prohibited and correction action which
shall be taken in situations as defined therein.
S512. Nondiscrimination. Eaual Emplovment Practices and Affirma-
tive Action Proqram.
The Borrower shall comply with the nondiscrimination and
affirmative action provisions of the laws of the united
States of America, the State of California, and the City. In
performing this Agreement, the Borrower shall not discri-
minate in its employment practices against any employee, or
applicant for employment because of person's race, religion,
ancestry, color, national origin, sex, age or physical
handicap. Any subcontract entered into by the Borrower re-
lating to this Agreement, to the extent allowed hereunder,
shall be subject to the provisions of this paragraph.
S513. EmploYment Opportunities for Business and Lower Income
Persons.
Any project/program funded in part or in whole with Com-
munity Development funds shall comply with the following
provisions (referred to as a section 3 clause:)
1) The work to be performed under this contract (Agreement)
is on a project assisted under a program providing di-
rect Federal financing assistance from the Department of
Housing and Urban Development and is subject to the re-
quirements of Section 3 of the Housing and Urban Deve-
SMALL BUSINESS LOAN AGREEMENT
- SHALL BUSINESS LOAN JREEMENT
lOB-Financed
Page -18-
lopment Act of 1968, as amended, 12 USC 1701u. Section
3 requires that, to the greatest extent feasible, oppor-
tunities for training and employment be given to lower
income residents of the project area and contracts
(agreements) for work in connection with the project be
awarded to business concerns which are located in, or
owned in substantial part by persons residing in the
area of the project.
2) The parties to this contract (Agreement) will comply
with the provisions of said Section 3 and the regula-
tions issued pursuant thereto by the Secretary of Hous-
ing and Urban Development set forth in Title 24 CFR,
Part 135, and all applicable rules and orders of the
Department issued thereunder prior to the execution of
this contract (Agreement) certify and agree that they
are under no contractual or other disability which would
prevent them from complying with these requirements.
3) The Borrower will send to each labor organization or
representative of workers with which he/she has a
collective bargaining agreement or other contract or
understanding, if any, a notice advising the said labor
organization or worker's representative of its
commitments under this Section 3 clause and shall post
copies of the notice in conspicuous places available to
employees and applicants for employment and training.
4) The Borrower will include this Section 3 clause in every
subcontract for work in connection with the project and
will, at the direction of the applicant for or recipient
of Federal financial assistance, take appropriate action
pursuant to the subcontract upon a finding that the sub-
contractor is in violation of regulations issued by the
Secretary of Housing and Urban Development, 24 CFR, Part
135. The Borrower will not subcontract with any subcon-
tractor where it has notice of knowledge that the latter
has been found in violation of regulations under Title
24, CFR 135 and will not let any subcontract unless the
subcontractor has first provided it with a preliminary
statement of ability to comply with the requirements of
these regulations.
5) Compliance with the prov~s1ons of Section 3, the regula-
tions set forth in Title 24 CFR, Part 135, and all ap-
plicable rules and order of the Department issued there-
under prior to the execution of the contract (Agreement)
shall be a condition of the federal financial assistance
provided to the project, binding upon the applicant or
recipient for such assistance, its successors, and as-
signs. Failure to fulfill these requirements shall
subject the applicant or recipient, its contractors and
subcontractors, its successors and assigns to those
SMALL BUSINESS LOA}' ~REEMENT
lOB-Financed
Page -19-
sanctions specified by the grant or loan agreement or
contract through which federal assistance is provided,
and to such sanctions as are specified by Title 24 CFR,
Part 135.
S514. ParticiDation of Minorities. Women and Small Businesses.
To the fullest extent possible in the administration of this
Agreement, Borrower agrees to provide opportunities for
minorities, women and small businesses to participate in
procurements under this Agreement.
8515. CaDtions.
The section headings appearing herein shall not be deemed to
govern, limit, modify or in any way affect the scope, mean-
ing or intent of these conditions.
8516. Effect of Leqal Judament.
Should any covenant, condition or provision herein contained
be held to be invalid by final judgment in any court of com-
petent jurisdiction, the invalidity of such covenant, condi-
tion or provision shall not in any way affect any other co-
venant, condition or provision herein contained.
8517. Choice of Law Governinq this Aqreement.
This Agreement shall be governed by and construed in accord-
ance with the laws of the State of California.
8518. Prohibition of Leqal Proceedinqs.
The Borrower is prohibited from using Grant funds received
under this Agreement, or funds realized as a result of this
Agreement, for the purpose of instituting legal proceedings
against the City or its official representatives.
8519. Riqhts and Remedies.
In the event any party fails to perform, in whole or in
part, any promise, covenant, or agreement herein, or should
any representation made by it be untrue, any aggrieved party
may avail itself to all rights and remedies, at law or
equity, in the courts of law. Said rights and remedies are
in addition to those provided for herein.
8ECTION VI.
ENTIRE AGREEMENT.
8601. ComDlete Aqreement.
This Agreement contains the full and complete Agreement bet-
. SMALL BUSINESS LOAN .2REEMENT
lOB-Financed
Page -20-
ween the two parties. No verbal agreement or conversation
with any officer or employee of either party shall effect
or modify any of the terms and conditions of this
Agreement.
S602. Number of Paqes and Attachments.
This Agreement is executed in three (3) duplicate originals,
each of which is deemed to be an original. This Agreement
includes, TWENTY (~) pages and
TWO ( 2 ) attachments which
constitute the entire understanding and agreement of the
parties.
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SMALL BUSINESS LOAN ~REEMENT
lOB-Financed
Page -21-
IN WITNESS WHEREOF, the City of
Borrower have caused this Agreement to
authorized representatives on this
,19_
San Bernardino
be executed by
day of
and thee
their duly
ATTEST:
CITY OF SAN BERNARDINO
city Clerk
W.R. HOLCOMB, MAYOR
City of San Bernardino
(CORPORATION)
BY
Corporate President
ATTEST:
BY
Corporate Secretary
Approved as to form
and legal content:
(Witness)
JAMES F. PENMAN
City Attorney
BY~ lf~
KJH/lab/0683
ATTACHMENT I
"EMPLOYMENT ACTION PLAN"
Economic Development Program
Employment Action Plan
statement of Borrower
Borrower does hereby state that the funds resulting from
the Loan Agreement entered into on behalf of the City of San
Bernardino (hereinafter "city") and Borrower shall be used
solely for furthering the purpose of the Economic Development
Program (EDP).
The purpose of EDP assistance is to benefit the low and
moderate income residents of the City of San Bernardino
through the creation and/or retention of jobs to said per-
sons. Pursuant to the purpose of the EDP the Borrower agrees
to comply with the following Employment Action Plan:
Borrower understands and agrees that in order to deter-
mine that said program purpose is being met, an Annual
Employment Report shall be filed with the city. Borrower
understands that failure to meet the objectives set forth in
this Employment Action Plan or failure to comply with the
requirements of filing the Annual Employment Report may
result in the entire outstanding balance of the loan plus
interest, being due upon written demand by the City, pursuant
to Section 302 of the Loan Agreement and this Statement.
KJH/lab/0254
Economic Development Program
ATTACHMENT 1:1:
1:NSURANCE REQU1:REMENTS
(Instructions for completing, executing and submitting Evidence of
Insurance to the City of San Bernardino.)
Insured: RANDALL A. ARD WENDY L. COREY, DBA: C.lt. HANUFACTORIHG
(Contractor, Lessee, Permittee, Borrower, Etc.)
Agreement/Reference No.
89-10
Date:
A. 1:NSURED
1. To expedite completion of the insurance requirements, please
give your insurance agent or broker a copy of the Insurance
Requirements Sheet along with these instructions and en-
dorsement forms.
2. If your agreement requires Workers' Compensation coverage
and you have been authorized by the State of California to
Self-insure Workers' Compensation, then a copy of the
certificate from the State consenting to self-insurance will
meet the evidence requirements.
3. All questions relating to insurance should be directed to
the person or office ~esponsible for your contract, lease,
permit, or other agreement. (See items 9 and 10 below.)
B. 1:NSURANCE AGENT OR BROKER
1. Acceptable Evidence -- The appropriate City Special Endorse-
ments are the preferred form of evidence. No modifications
to the form are permitted. Alternatively, certified copies
of the full policy containing additional insured and thirty
(30) day cancellation notice language will be accepted
subject to review by the City Attorney. Certificates,
Verifications, Memoranda of Insurance and other non-binding
documents submitted along are not acceptable as evidence of
insurance. Binders are acceptable as interim evidence until
policies are available.
2. Multiple Policies -- More than one (1) insurance policy may
be required to comply with the insurance requirements.
Endorsement forms appropriate to your insured's agreement,
contract, lease or permit have been provided.
3. Signature -- Please have an authorized representative of the
insurance company manually sign completed endorsement forms.
Signatures must be originals as the City Attorney will not
accept facsimile (rubber stamp, photocopy, etc.) or ini-
tialed signatures.
1
INSURANCE REQUIREME:
Attachment II continued...
Page -2-
4. Underwriter -- The name and address of the insurance company
underwriting the coverage must be noted on the endorsement
form. In the case of syndicates or Subscription policies,
indicate lead underwriters or managing agent and attach a
schedule of subscribers, including their percent participa-
tion.
5. Document Reference -- Include reference to either the
specific City agreement (bid, contract, lease, etc.) or
indicate that all such agreements are covered.
C. INSURANCE REQUIREMENTS
1. Coverage and Limits -- The coverages and limits for each
type of insurance are specified on the insurance requirement
sheet. When coverage is on a scheduled basis, a separate
sheet may be attached to the endorsement listing such
scheduled locations, vehicles, etc., so covered.
2. Excess Insurance -- Endorsements to excess policies will be
required when primary insurance is insufficient to comply
with the requirements.
3. Additional Pages -- If there is insufficient space on the
reverse side of the form to note pertinent information, such
as inclusions, exclusions or specific provisions, etc.,
attach separate sheet$ and note this on the endorsement
form.
4. Person to Contact -- Completed endorsements, correspondence
and questions relating to the required insurance are to be
directed to the following representatives:
5. Technical Assistance -- Improperly completed endorsements
will be returned to your insured for correction.
6. Delay in sUbmitting properly completed endorsement forms may
delay your insured's intended occupancy or operation.
7. Renewals -- For extensions or renewals of insurance policies
which have the City's endorsement formes) attached, we will
accept a renewal endorsement or a certificate (with an
original signature) as evidence of continued coverage if it
includes the statement that the insurance protection
afforded the City of San Bernardino has been renewed under
the same terms and conditions as previously approved.
2
INSURANCE REQUlREME
Attachment II Contin~ed...
Page -3-
NAME RANDALL A. AND WENDY L. COREY, dba: C.K. HAHUFAC~B
AGREEMENT/REFERENCE NUMBER
The following coverages noted with an "X" are required with the
Combined Single Limits (CSL) as noted on the right. Unless written
exception is allowed by Risk Managment. All coverages must add the
City as additional insured.
Limits
Worker's Compensation
Employers Liability
( )
statutory
$ 100.000
Commercial
General Liability
( ) Broad Form Property Damage
( ) Personal Injury
( ) Broad Form Liability Endorsement
( ) Fire Legal Liability
( ) Garagekeepers Legal Liability
( ) Owned Automobiles
( ) Nonowned Automobiles
( ) Hired Automobiles
( )
$1.000.000
Automobile Liability (if auto is used for
this contract.)
Professional Liability (if applicable)
$
$1.000.000
Property Insurance
90% value of
buildina
(Contents at
100% of
value)
( ) Extended Coverage
( ) Vandalism and Malicious Mischief
( ) Business Interruption (90 days minimun)
$
(All fixed
costs plus
payroll)
( ) Crime (inside and outside)
( ) Sprinkler Leakage
( ) Other
$
3
- ~
INSURANCE REQUIREKE: ,
Attachment II Contil..Jed...
Page -4-
Inland Marine: $
(total cost of goods in transit at anyone time)
Comments:
flab
0255
4