HomeMy WebLinkAbout13-Economic Development Agency
/ ~ITY' OF SAN BERt&RbINO - REQUEST -'dR COUNCIL ACTION
From:
Kenneth J. HerK:Iersal, Director
I"rInoft 11'1i.ty DevelU}oWl"ld..
Marcil 2, 1989
Subject:
APPR:WAL OF SMAIL HlSINESS IJ:Wl
'10 ~ ANN'S ARl', FRAMIN:;
AND GIFr GMZERY m '!HE A!DlNI'
OF $50,000.00
~~
Oept:
Date:
Synopsis of Previous Council action:
on August 1, 1988, the Mayor ani 0....."'11'\ Clc:IIJ1xli1 adcpt:ed Resolutia1 NuId:ler 88-293
~ ani authorizin] executi.cn of a small bJsiness loan ~~d.. with
Miu'garet Arm's Art, Frami.n;J ani Gift Galle:ty.
Recommended motion:
1ldcpt Resoluticn
Supporting data attached:
Ken Hemersan/Val Mahabir
staff Report
Phone:
5065
Contact person:
Ward:
7
FUNDING REQUIREMENTS:
Amount:
$50,000.00
Source: (Acct. No.) 121-542-57649
(Acct. Descriotion)
Small Business Loan FIm:i (aBi)
Finance: ~ 111"'-
Council Notes:
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CITY'OF SAN _R~DINO - REQUEST .Q. COUNCIL ACTION
STAFF REPORT
On August 1, 1988, the Mayor an:} 0 .....11'\ 0Jun::il took acticn appravin3 :Resoluticn
NImi:ler 88-293 "WL'^'in3 an:} authorizin3 execution of a small b.lsiness loan ~_It
between City an:} Margaret Arm's Art, Fl:'aJnin;J an:} Gift Gallery in the aDD.IIIt of
$50,000 far the te%m an:} ocnll.tials set forth in Exhibit "A". said loan aDD.IIIt to
be fumed with am funds.
SUbsequent to the above acticn, it was deteImined that the Davis Baoan Act
(prevailin3 wage requirement) woold be awlicable to the project sime as; furI:Js
were bein3 utilized. Accardin;Jly, the approved loan _..........It was -oed to
inc11.de within its general terms an:} ocnll.tia'lS (page 12) the follc:lWinj:
"krj constructicn CXX1tracts award usin3 funds provided umer this ~...........t in
exoess of $2,000 shall inc11.de a provisicn far OCIIplianoe with the Davis-Baoan
Act..." It is, therefore, ~ft'l'i' to the Mayor an:} 0.....'1 0Jun::il to adept anew
resolution appravin3 the attad1ed _..........d.. an:} repealin3 Resolutial NImi:ler 88-293.
I reo ....-.n adqIticn of the attached resoluticn.
~jL
JmVlab/1069
March 2, 1989
..OF SAN BERNODINO - REQUEST pQ. COUNCIL ACTION
STAFF REPORT
I
em June 16, 1988, the Ec:cnanic Devel~1t P.l.""'....... Calmittee (Em'C) met
am ret' ....-'1ded to the Mayor am 0....... O::lI.D'lcU GWJ.wal. of the following
loan request for the tem am date stated:
caxpany:
owners:
I.ocatiat:
Ioan Amo.Int:
'l'em:
Rate:
Miugaret Ann's Art, Framin;J and Gift Gallery
Limen and Mazgaret. Ann Riddle
1996 Del Rcsa
$50,000.00
Fifteen (15) Years
Eight Pel:celtt (8%)
~""'ion of n-orr...nv
'!his tusiness provides art cl"~-'!S (44% of total sales), aJStaDized
r........... for art (36%), gifts, art, and BlJR)lies (20%). 'lhe principals and
sole owners of this tusiness are Margaret and Linden Riddle (wife and
husbaIxi) .
Margaret Riddle has been a professialal artist and teadler for the put
fifteen (15) years, am holds a Ryan Designated SUbject 'l'elIct1inJ
Credential fraD~. She has taught adult educatiat at San Bemaxdino
valley Q)llege am ~ for variCUI len;Jths of. t1D8 totalin:.J seven (7)
. years.
Limen Riddle is n:JW the branch manager for A.M. Lewis in PaIala and has
been with that """'t"'''IY for twenty-two (22) years. His Cl.u......tt 8lIminls
fraD A.M. Lewis are ~tely $30,000 per year. Mr. Riddle
contrib1tes manaqeuent sJdlls am the abUity to make aJStaII l:L......... to
the cxmpany.
ll.mnnnt- and 1:>".,.,.,.,.,.. of T nAn
'lbe Riddles are reqJeStin;J a loan of $50,000 fraD the thmII"lity
Devel~tt Department. 'lbe rums will be used for the additiat of a
bathrocm to OCIIply with the City 1:W.l~ codes, erectiat of a stmet
sign, a frame 1c::hqpin:.J" machine, paxkin;J lot l~, ~acin:.J of.
parldrq lot, inventory and qlerlltin:.J rums.
Q)llat-........ 1
'lhe """'t"'ny lists the following at their awJ.icatiat:
~
Orlainal ~
P1. sent
Market
value
P.l. smtt
!mt:gage
RA 1 ance
.
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7/18/88
$219,892
$350,00 $214,383
EXHIlHT "A"
f
Inventory
Total
0 0
P1. : nnt ~T:llt
Market Itn'tgage
oriainal ~ YAlI>> ~lancB
$ 65,678 $ 57,782 $ -<>-
$31. 561 $31.561 $ -<>-
$317,131 $439,343 $214,383
j
ImI
PUmiture, Fixtures
Al.Jt.c:m:'ibile
Job crea~i....
1988 - 0
1989 = 1 (Ml time art inst:ruct:or.)
1990 - 2 (part time (1/2) store help.)
Affect on t'hnnoonv
.
A loan from the th...lItrdty 0evel..".....,.1t Department will hpact Margaret
Ann's Art, F'l:aminJ and Gift Gallery in the follcwi.rYJ ways:
a) With the aalltien of a bathroc:m, City codes will be met, lobic:h will
allow her to CXI'NSW two (2) dU1dren's art classes CXlrISistinJ of
thirteen (13) p.lpils each. 'l\1iticn will be $45.00 per mcnth per
p.lpil, and does not include supplies. She pi: Ell"!litly has a waithq
list of al8 huI.d1...d, three (103) d1i1dren whose parents wish to
enroll them in the art c1M7es.
.
b) By erec:tin;J an Oltdoor street sign, the b.lsiness will be able to
attract a potential clientele fran the 22, ()()()fo oort:h and saJth
CXIIIII.Itirg vehicles en an average day. Specific III:tletaIy am::AJnt
woold be hard to calaJlate, h1t 1npact shcW.d be significant.
c) By acquir~ a "frame d1q:p~" machine, they will be able to do
"in ha.1se" c:ustaa framin;J, rather than "jci:b~ alt" l<<It'k as is
currently the i^L' <'eo"''''', In house ability shcW.d ;........nj..tely
increase gross sales by $13,257 per year and double the gross
margin en these partiallar item. 'Dle fraJnin;J portien of the
b.lsiness currently CCI1tril:lutes thlrty-four percent (34%) of the
b.lsiness, and twelve percent (12%) of the total gross profit, with
the new~tty and the ability to use c::t-oIp<>t' raw materials, the
"c:ustcm f'rlIInint' will then CCI'IStitute an estimated fifty-four
~~tt (54%) of the bisiness and thirty-seven point eight pe1;oeIlt
(37.8%) of the gross profit.
d) 'Dle installatien of adequate parldD;J lot lighthq will provide a
sense of security for these who atten:i }U-Vi.vsed night class-es.
Specific hpact is $45.00 per student per mcnth, with the capacity
of ~ able to add four (4) night classes of thirteen (13) peqlle
per class.
e) Resurfacin;J of parJdn;J lot to prevent Mrf further problems of
parldD;J facility denigratien.
7/18/88
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f) In::rease inventory by $15,000, ld1id1 will increase aIStaIler's
"H"-'Lbmity for pu:dlase. '
q) IncrelISe cash reserve SO they are able to readily meet daily
luIiness activities, or act upcn aw.."I'Llate decisicl\.
'!be net OII8nIll iDpct of the loan will be in the prc:wisicl\ of the
capital to finish the L-'. ...1!n;, capital im_t-..t, and inventory
increase ld1id1 the owners believe will ccntriJ::ut:e to the mavillli zaticl\
of their sales potential and profit.
COll..t-......'
'lhis loan will be collateralized by Deed of Trust with Ass~......nt of
Rents an:l Fixtures an:l owners guarantee. owners personal fi.nllncia1
statement reflects sufficient assets to be able to guarantee loan.
Ileal Estate: $377,000
other: $ 25,000
1'ersa1al. Glarantee: $ 50,000
~A .. ...uctdation
I reo ....-'1d adcptial of the attached resolutiat.
Kenneth J.
Director of /'nma"lity IleY'el<.pllt'l.t
KIlf/lab/l069
7/18/88
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RESOLUTION NUMBER
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND
1 DIRECTING THE EXECUTION OF A SMALL BUSINESS LOAN AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO AND MARGARET ANN'S ART,
2 FRAMING AND GIFT GALLERY, IN THE AMOUNT OF $50,000.00 AND
REPEALING RESOLUTION NUMBER 88-293.
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNlUIDINO AS FOLLOWS:
Section 1.
The Mayor of the city of San Bernardino is
hereby authorized to execute, on behalf of the city of San
Bernardino, a small business loan agreement with Margaret Ann's
Art, Framing and Gift Gallery, a copy of which loan agreement is
annexed hereto as Exhibit "1" and is incorporated herein by
reference as though fully set forth at length.
The agreement
provides for the loaning of funds from the small business loan
program in the amount of $50,000.00.
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Section 2. Resolution Number 88-293 adopted in connection
with this small business loan fund transaction is hereby repealed
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in its entirety.
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I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
meeting thereof, held on the
, 1989, by the following vote
day of
to wit:
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AYES:
Councilpersons
NAYES:
ABSENT:
City Clerk
KJHjlabj0680
March 2, 1989
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1 The foregoing resolution is hereby approved this
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RESOLUTION BE~ CITY AND MARGARET ANN'S ART,r-\AMING AND
GIFT GALLERY A~ORIZING SMALL BUSINESS WAN AGll!fMENT.
day of
, 1989.
Mayor, City of San Bernardino
Approved,as to form and
legal content:
KJH/lab/0680
March 2, 1989
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CITY OF SAN BERNARDINO
COMMUNITY DEVELOPMENT DEPARTMENT
"Economic Development Program"
(CDBG-Financed)
MARGARET ANN AND LINDEN RIDDLE dha:
BORROWER: MARGARET ANN'R ART, FRAMING AND GIFT GALLERY
PROJECT TITLE: REHABILITATION
PROJECT ADDRESS:
1996 DEL RORA AVENUE
RAN BERNARDINO, CA 92404
LOAN IS NUMBER
CONTRACTS.
118-002
OF COMMUNITY DEVELOPMENT
I<JH/lab/0256
Section
Number
SECTION I
S101.
S102.
S103.
S104.
S105.
SECTION II
S201.
S202.
S203.
S204.
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TABLE OF
~Q~!!~!~
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
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Page.
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Section
Number
S405.
S406.
SECTION V
S500.
S500.1
S500.2
S500.3
S501.
S502.
S503.
S504.
S505.
S506.
S507.
S508.
S509.
S510.
S511.
S512.
S513.
S514.
(C)
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TABLE OF CONTENTS (Cont...)
Title
Paqe
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Release of Funds from Escrow
Reconveyance Fee
GENERAL TERMS AND CONDITIONS
Prevailinq Waqe Requirement
Accomplishment of Work
Ineliqible Contractors
Inspection of Work
Indemnification and Insurance
Requirements
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Plan
Prohibition Aqainst Assiqnment
Limitation of Corporate Acts
Amendments and Waivers
Compliance with Statutes and
Requlations
Conflict of Interest
Political Activity Prohibited
Lobbyinq Prohibited
Installation of Financial Assistance
Siqn
Press Releases
Discrimination Prohibited
Nondiscrimination, Equal Employment
Practices, and Affirmative Action
Employment Opportunities for Business
and Lower Income Persons
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Participation of Minorities, Women and
Small Businesses
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ii
8ection
Number
8515.
8516.
8517.
8518.
8519.
SECTION VI
S601.
8602.
KJH/lab/0257
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TABLE OP CONTENTS (Cont...)
Title
Captions
Effect of Leqal Judgment
Choice of Law Governinq this Aqreement
Prohibition of Leqal Proceedinqs
Riqhts and Remedies
ENTIRE AGREEMENT
Complete Aqreement
Number of paqes and Attachments
Execution (Siqnature) paqe
ATTACHMENTS
Attachment I -- Employment Action Plan
Attachment II -- Insurance Requirements
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Paqe
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AGREEMENT NUMBER Rfl-001CR
(COBG-Financed)
BE'I'WEEN THE CITY OF SAN BERNARDINO AND THE
MARGARl!T AlOI'S AIlT.
FRAMIRG AIm GIFT GALLERY
(RELATING TO) THE
CONMERICAL REHABILITATIOR (Leasehold I...,roveaents)
PROJECT
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THIS AGREEMENT is made and entered into by and between the
City of San Bernardino, a municipal corporation, hereinafter call
"City", and MAllGARET AlOI AIm URDU RIDDLE
hereinafter called the "Borrower".
,
!!!T!!!~S!!!!
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 HCOBG, to address the community development needs of
the City; and
WHEREAS, the Community Development Department, hereinafter
called the "COD", has been designated by the City to provide for
proper planning, coordination and administration of the City's
programs as described in the City'S Grant Agreement with the
Grantor, and of certain projects funded by the City; and
WHEREAS, the COD 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 project which is the subject of this agreement
meets the requirements of the above described program; and
WHEREAS, Borrower has applied to the City of 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:
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~~R!!!!E!!!
SECTION I.
PARTIES, TERM, CONDITIONS PRECEDENT, AND INDEPENDENT STATUS
S101.
S102.
Parties to the Agreement.
The parties to this Aqreement are:
1. The City of San Bernardino, a municipal corporation,
havinq its principal office at 300 North "D" Street,
Bernardino, California 92418.
2. The Borrower, HARGAllET ARB AND LIlmEN RIDDLE
havinq its principal address at 1996 DEL ROSA AVElmE
SAN BERNARDINO. CA 92407
The Borrower is ( a) SOLE PROPRIETORSHIP
(fictitious name enterprise, individual, California
Corporation/qeneral partnership/limited partnerShip.)
Representatives of the Parties and Service of Notices.
The representatives of the respective parties who are
authorized to administer this Aqreement and to whom formal
notices, demands and communications shall be qiven are as
follows:
San
,
1. The representative of the City shall be, unless other-
wise stated in the Aqreement:
Kenneth J. Henderson, Director
Community Development Department
300 North "D" Street, Fifth Floor
San Bernardino, CA 92418
2. The representative of the Borrower shall be:
HARCAllET ARB AND LIlmEN RIDDJ..E
5628 ACACIA
SAN BERJlARDINO. CA 92407
3. Formal notices, demands and communications to be qiven
hereunder by either party shall be made in writinq and
may be effected by personal delivery or by reqistered or
certified mail, postaqe prepaid, return receipt re-
quested and shall be deemed communicated as of the date
of mailinq.
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8103.
8104.
A.
B.
C.
S105.
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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.
Term of this Agreement.
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.
Conditions Precedent.
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
adopted by the Borrower and properly attested.
3. Resolutions of other corporate actions of the Borrower's
Board of Directors, properly attested or certified,
which specify the name Cs) of the personCs) authorized
to obligate the Borrower and execute contractual docu-
ments.
4. Certificate of Good Standing from California Secretary
of State.
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.
In the event that Borrower is an individual doing business.
under fictitious name, a copy of the Fictitious Name State-
ment and evidence of proper filing thereof.
Independent Contractor Status of the Borrower.
The parties agree that the Borrower is an independent
contractor 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.
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SECTION II.
PURPOSE OF AGREEMENT AND LOAN, LOAN TERMS, AND PROMISSORY NOTE
S201.
S202.
S203.
A.
Purpose of the Aqreement.
The purpose of this Agreement is to provide PInY THOUSAND
ARB 00/100--------------------------------------------------- Dollars
($50,000.00 ) of EDP funds to be loaned by the city to the
Borrower, hereinafter called the "Loan", for the purpose
and under the terms and conditions set forth herein.
Purpose of the Loan.
The purpose of the Loan is to provide financial assistance
to enable the Borrower to:
Rehabilitate property located at 1996 Del Rosa Avenue, San Bernardino
California, 92404, in accordance with the scope of work signed and
dated May 10, 1988.
Terms of the Loan.
The city agrees to lend the Borrower, and the Borrower
agrees to borrow from the city,' an amount not to exceed
PInY THOUSASMD ARB 00/100----------------- DOLLARS, ($ 50,000.00 ),
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 (a) be dated as of the closing, (b) bear
interest on the unpaid principal at the rate of eight percent
( 81. ) per annum, (c) be for a term of fifteen years (15)
years, and (d) provide for payment of the principal amount
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thereof and the interest thereon in one-hundred. eiJl;hty
( 180) equal monthly installments of POUK IlUllDRED. EIGRTY-
SEYER ARB 80/l00----------------------------------------------DO~
($ 487.80 ), 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.
S204.
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
precedent:
1. The representations and warranties made herein by the
Borrower shall be true and correct at the time of
consideration by the COlDIDunity Development Department
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
Escrow Agency.
B. The Note is to be secured as follows:
Personal Guarantee.
Deed of Trust with Assign.ent of Rents.
Security Agreement for Pixtures.
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.
D. The Borrower aCknowledges and agrees that the amount being
provided under this loan shall be for a total of PIFTY
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TBOUSAIID ARD OO/lOO-------------------------DOLLARS, ($ 50.000.00 ),
and additional funds to cover additional projects costs,
anticipated or unanticipated, incurred 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
covenants 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
accordance with its terms. The execution and delivery
of this Agreement and the note, and consummation of the
transactions 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 approval, 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
property identified in S204(B) of this Agreement,
located at 1996 Del Rosa Avenue
, San
Bernardino, California, and it is free and clear from
all liens except as set forth
herein: Johu Collins aud Htiua CouUs. husband aud wife. as
co..unity property $215.000 (estimated value of property is
$350.000).
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
jurisdiction over its business or properties, including
(without limitation) all tax laws and Borrower has not
received notice of any violation of such statutes, laws,
regulations 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
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with the riqhts of others.
D. There is not pendinq or threatened aqainst Borrower, or any
of its officers, any actions, suits, proceedinqs or
investiqations at law or in equity or before or by any
Federal, state, municipal or qovernmental department,
commission, board, bureau, aqency or instrumentality which,
if determined adversely, would be likely to have a
materially adverse 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
Aqreement 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 chanqe in the
condition, financial or otherwise, of Borrower as shown in
the financial statements dated Dec:.ber. 1987 ,
except chanqes in the ordinary course of business, none of
which, individually or in the aqqreqate, has been
materially adverse.
S302. Additional Covenants of the Borrower.
Borrower covenants and aqrees 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 accordinq to
its terms.
2. Pay any other amounts that may be due or become due and
owinq to the city under or pursuant to the terms of this
Aqreement or the Note.
3. Execute and deliver all instruments, and perform such
acts, as the City may reasonably deem necessary or
desireable to confirm and secure to the city all riqhts
and remedies conferred upon the City by the terms of
this Aqreement and Note. .
4. In the event that Borrower shall qrant the City a se-
curity interest in Real Property as collateral under
S204(B) herein, then Borrower aqrees to maintain at
Borrower's sole expense a policy of title insurance
coveraqe 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
Aqreement or that would, with notice, or lapse of time
or both, constitute an Event of Default under this
7
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Agreement. Notice shall specify the nature of such
Event of Default.
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 Ag~eement 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
ordinances as further defined and set forth in Section
505 of this Agreement.
9. In the event that Borrower is a corporation, then
Borrower shall do or cause to be done all things neces-
sary to preserve and keep in full force and effect its
corporate existence, rights and franchises.
10. Not violate any laws, ordinances, governmental rules or
regulations to which it is subject and not fail to
obtain any licenses, permits, franchises or other
governmental authorization necessary to conduct its
business, which violation or failure to obtain might
have a material adverse effect on the business, pro-
spects, profits or condition (financial or otherwise) of
Borrower.
11. 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
coverage(s) shall be in accordance with the general
insurance provisions of this Agreement as specified in
5501(8).5, including " fire, hazard and general compre-
hensiveliability insurance, worker's compensation,
construction/rehabilitation. liability, to protect such
business 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 individual
insured, and the policy or pOlicies shall not be subject
to cancellation, reduction or non-renewal without thirty
(30) days prior written notification to the City "
Attorney and the Director of Community Developent by
certified mail. !
12. Pay all indebtedness and obligations pro~ptly in accor-
dance with normal terms and promptly pay and discharge
8
8303.
A.
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or cause to be paid and discharged all taxes, assess-
ments 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, respectively, before the same shall become in
default.
Defaul.t.
The entire unpaid principal of the Note, and interest then
accrued thereon, shall become and be forthwith due and .
payable upon written demand by the City or the City's
assigns, without any other notice or demand of any kind or
any presentment 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 installmlJnt of principal ,or interest on
the Note that is not paid when due and such payment
remains unpaid for ~irty (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
orin any instruments securing or related to this
Agreement.
4. If any representation or warranty made by the Borrower
in this Agreement shall prove to be untrue in any
material respect, or if any report, financial statement
or financial schedule or other instrument delivered
under or pursuant to this Agreement or the transactions
contemplated herein, to the City or to any other holder
of the Note shall prove to be untrue in any material
respect 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 si.ilar 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
9
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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 assig~ent for the benefit of, or
entering into any composition or arrangement with
creditors; (ii) of proceedings for the "appointment of a
receiver, trustee Or liquidator of Debtor, or of a
substantial part o~ its assets, being authorized or
instituted 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. The loss, theft, substantial damage, destruction,
abandonment, sale of encumbrance to or of any of the
collateral 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
S401. Reporting Requirements.
A. At such times and in such forms as the City may require,
there shall be furnished to the City such statements,
records, reports, data and information as the city may
request pertaining to matters covered by this Agreement.
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B. Borrower will provide its financial and accounting
statements to the city for the period ending
December 1988 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
discretion, 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
authorized in writing by the Director of Community
Development, 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
secured 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.
S404. Validity of Financial Documentation Submissions.
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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 S202
"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. Reconveyance Fee.
In the event that real property is used to secure this Loan,
then Borrower agrees to pay any costs incident to title
reconveyance, including, if applicable, trustee's fees,
attorney fees, document preparation fees, recording fees or
any other related expenses.
SECTION V.
GENERAL TERMS AND CONDITIONS
Prevailing Wage Requirement.
Any construction contracts awarded using funds provided
under this agreement in excess of $2,000 shall include a
provision for compliance with the Davis-Bacon Act
(40.U.S.C. 276(a) to 276(a) 7) and as supplemented by
Department of Labor Regulations (29 CFR). Under this
Action, contractors shall be required to pay wages to
laborers and mechanics at a rate not less than once a week.
Community Development Department shall place a copy of the
current prevailing wage determination issued by the Depart-
ment of Labor in each solicitation made pursuant to this
Agreement and the award of a contract shall be conditioned
upon the acceptance of the wage determination. Borrower
shall report all suspected or reported violations to COD.
5500.1 Accomplishment of Work.
5500.
The Borrower agrees to carry out all rehabilitation work
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specified in the application and its supporting documenta-
tion with all practicable dispatch in a sound, economical
and efficient manner, either personally or through written
contract let by him/her with the prior concurrence of the
City or its designee. In accomplishing such
rehabilitation, the Borrower will comply with the
applicable Property Rehabilitation Standards (PRS)and, to
the extent that these are not controlling, with the work
write-up submitted with the loan application.
S500.2 Ineligible Contractors.
The Borrower agrees not to award any contract or purchase
order for rehabilitation work, other services, materials,
equipment, or supplies, to be paid for, in whole or in .
part, with the proceeds of the loan, to any contractor or
subcontractor whom the Borrower has been advised is unac-
ceptable for City assisted contracts by the City of San
Bernardino, or its designee, or delegate.
S500.3 Inspection of Work.
.The city or its designee shall have the right to inspect
all rehabilitation work financed, in whole or in part, with
the proceeds of the loan and will inform the Borrower of
any non-compliances with respect to the contract for the
rehabilitation work. The Borrower will take all steps
necessary to assure that the City or its designee is
permitted to examine and inspect the rehabilitation work
and all contracts, materials, equipment, payrolls and
conditions of employment pertaining to the work, including
all relevant data and records.
S501. Indemnification and Insurance Requirements.
A. Indemnification:
The Borrower undertakes and agrees to defend, indemnify and
hold harmless the city and any and all of the City's
officers, 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 whatsoever, for death or injury to any person,
including Borrower'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 sub borrower of any tier whether or not
contributed to by any act or omission, 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 approval of the
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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
expense throughout the term of this agreement the
insurance requirements specified herein. Evidence of
insurance 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
containing 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, -
stating that the Borrower is so insured, must accompany
any demand for funds unless said form has been pre-
viously submitted and approved by the city. (Certifi-
cation 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 in-
surance shall not be cancelled, reduced iri coverage or
limited or non-renewed, except after thirty (30) days
written notice by receipted delivery has been given to
the Director of the Community Development Department,
300 North "0" street, fifth floor, San Bernardino,
California 92418 and Office of the City Attorney, City
Hall, 300 North "0" street, sixth floor, San Bernardino,
California 92418. Policies of insurance and fidelity
bonds, except for policies covering 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 evidence 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
insurance to protect its interests, in which event the
cost thereof shall be reimbursed by Borrower forthwith.
Any failure to forthwith reimburse such expense shall
constitute an Event of Default.
14
8502.
A.
B.
8503.
8504.
8505.
A.
ro
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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 ninety
(90) days written notice.
5. The Borrower shall maintain minimum insurance coverages
prescribed in Attachment II of this Agreement, which by
this reference is incorporated herein.
Prohibition Against Assignment.
The Borrower shall not assign this Agreement, nor assign or
transfer any interest or obligation in this Agreement
(whether by assignment or novation) without prior written
consent 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.
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.
Limitation of Corporate Acts.
In the event that Borrower is a corporation then the
Borrower shall not amend its Articles of Incorporation or
Bylaws, 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
performance 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.
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.
Compliance with statutes and Regulations.
The Borrower warrants and certifies that in the performance
of this Agreement, it shall comply with all applicable
statutes, rules, regulations and orders of the United
states, the 8tate of California, the County and City of San
Bernardino including laws and regulations pertaining to
15
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5506.
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.
Borrower 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.
Borrower covenants that the Davis-Bacon Act as amended, the
Contract Work Hours and Safety Standards Act, and the
Copeland "Anti-Kickback Act" shall be a part of all con-
struction contracts awarded by the Borrower pursuant to
this Agreement and all sub contracts thereto.
Conflict of Interest.
A.
The Borrower covenants that none of its directors,
officers, employees, or agents shall participate in
selecting sub contractors, or administering subcontracts
supported (in whole or in part) by Federal funds where such
person is a director, 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 sub
contract:
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
Government Code Section 87100 et seq., if such person
were a public officer, because such person would have a
"financial 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-law, 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
16
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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.
C. The Borrower further covenants that no officer, director,
employee or agent shall solicit or accept gratuities,
favors, or anything of monetary value, from an actual or
potential subcontractor, supplier, a party to a sub
agreement, (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
immediate family with the proposed subcontractor and its
officers, 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 Bernardino, State of California, and Federal regulation
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
consideration 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
17
5507.
5508.
5509.
5510.
5511.
5512.
-
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lb
-
'\'-:-,,~""
(
o
"subcontractor" for the term "Borrower" and "Sub
contractor" for "Subcontractor".
Political Activity 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
election or defeat of any candidate fOr public office.
Lobbying Prohibited.
None of the funds provided under this Agreement shall be
used for any purpose designed to support or defeat any
pending legislation or administrative regulation.
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 requested by the Director of Community Development
Department.
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 sponsoring agency of the project.
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/pro-
ject. For purposes of this Section, Title 24, Code of
Federal Regulations Section 570.601(b) defines specific
discriminatory actions which are prohibited and correction
action which shall be taken in situations as defined
therein.
Nondiscrimination, Equal Employment Practices and Affirma-
tive Action Program.
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 dis-
18
S51.3.
FO
c
criminate 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 relating to this Agreement, to the extent allowed
hereunder, shall be subject to the provisions of this
paragraph.
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
direct Federal financing assistance from the Department
of Housing and Urban Development and is subject to the
requirements of Section 3 of the Housing and Urban
Development Act of 1968, as amended, 12 USC 1701u.
Section 3 requires that to the greatest extent feasible
opportunities 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
Housing 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 und~r 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
19
5514.
5515.
5516.
5517.
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pursuant to the subcontract upon a finding that the
subcontractor 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
subcontractor where it has notice of knowledge that the
latter has been found in violation of regulations under
Title 24, CFR Part 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 provisions of Section 3, the regu-
lations set forth in Title 24 CFR, Part 135, and all
applicable rules and order of the Department issued
thereunder prior to the execution of the contract
(Agreement), shall be a condition of the Federal finan-
cial assistance provided to the project, binding upon
the applicant or recipient for such assistance, its
successors, and assigns. Failure to fulfill these
requirements shall subject the applicant or recipient,
its Contractors and subcontractors, its successors and
assigns to those s~nctions specified by the grant or
loan agreement or contract through which Federal assis-
tance is provided, and to such sanctions as are spec-
ified by Title 24 CFR, Part 135.
Participation 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.
Captions.
The section headings appearing herein shall not be deemed
to govern, limit, modify or in any way affect the scope,
meaning or intent of these conditions.
Effect of Legal Judgment.
Should any covenant, condition or provision herein
contained be held to be invalid by final judgment in any
court of competent jurisdiction, the invalidity of such
covenant, condition or provision shall not in any way
affect any other covenant, condition or provision herein
contained.
Choice of Law Governing this Agreement.
This Agreement shall be governed by and construed and in
accordance with the laws of the State of California.
20
SS18.
SSi9.
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Prohibition of Legal Proceedings.
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 representative.
Rights 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.
SECTION VI.
ENTIRE AGREEMENT
S601.
S602.
IIII
Complete Agreement.
This Agreement contains the full and complete Agreement
between the two parties. No verbal agreement or conversa-
tion with any officer or employee of either party shall
effect or modify any of the terms and conditions of this
Agreement.
Number of Pages and Attachments.
This Agreement is executed in three (3) duplicate
originals, each of which is deemed to be an original. This
Agreement includes, twenty-two (~) pages and
two ( 2 ) attachments which
constitute the entire understanding and agreement of the
parties.
IIII
21
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f. '.
IN WITNESS WHEREOF, the city
Borrower have caused this Agreement
authorized representatives on this
, 19_.
ATTEST:
City Clerk
Approved as to form
and legal content:
~)
flab
0986
of San Bernardino
to be executed by
day of
and thee
their duly
CITY OF SAN BERNARDINO
Mayor, City of San Bernardino
(CORPORATION)
BY
(President)
BY
(Corporate Secretary)
WITNESS:
BY
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ATTACHMENT I
"EMPLOYMENT ACTION PLAN"
Economic Development Program
Employment Action Plan
statement of Borrower
Borrower does hereby state that the funds ~esulting 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 (EOP).
The purpose of EOP 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 EOP 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.
XJH/lab/0254
Economic Development Program
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ATTACHMENT II
INSURANCE REQUIREMENTS
(Instructions for completing, executing and submitting Evidence of
Insurance to the City of San Bernardino.)
Insured:
(Contractor, Lessee, Permittee, Borrower, Etc.)
Agreement/Reference No.
.'
Date:
A. INSURED
1. To expedite completion of the insurance requirements, plea.e
give your insurance agent or broker a copy of the Insurance
Requirements Sheet along with these instructions and
endorsement 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 responsible for your contract, lease,
permit, or other agreement. (See items 9 and 10 below.)
B. INSURANCE 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 Xnsurance 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.
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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.
Insurance Requirements:
6. 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.
7. Excess Insurance -- Endorsements to excess policies will be
required when primary insurance is insufficient to comply
with the requirements.
8. 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 sheets and note this on the endorsement
form.
9. Person to Contact -- Completed endorsements, correspondence
and questions relating to the required insurance are to be
directed to the following representatives:
10. Technical Assistance -- Improperly completed endorsements
will be returned to your insured for correction.
11. Delay in submitting properly completed endorsement forms may
delay your insured's intended occupancy or operation.
12. Renewals -- For extensions or renewals of insurance policies
which have the City'S endorsement form(s) 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.
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INSURANCE REQUIREMENTS
(Attachment II)
NAME
AGREEMENT/REFERENCE NUMBER
DATE
The following coverages noted with an "X" are required with the
Combined Single Limits (CSL) as noted on the right.
Limits
Worker's Compensation
Employers Liability
( ) Broad Form All States Endorsement
( ) Voluntary Compensation Endorsement
( ) Longshoremen's and Harbor Workers'
Compensation Act Endorsement
( )
Statutory
$ 100.000
General Liability
( ) Premises and Operations
( ) Contractual Liability
( ) Independent Contractors
( ) Products/Completed Operations
( ) Broad Form Property Damage
( ) Personal Injury
( ) Broad Form Liability Endorsement
( ) Fire Legal Liability
( ) Watercraft Liability
( ) Incidental Medical Malpractice
(if applicable)
( ) Explosion Hazard
( ) Collapse Hazard
( ) Underground Hazard
( ) Garagekeepers Legal Liability
( ) Hangar Reeps Legal Liability
( ) owned Automobiles
( ) Nonowned Automobiles
( ) Hired Automobiles
( )
Sl. 000. '000
Automobile Liability (if auto is used for
this contract.)
Professional Liability (if applicable)
$1.000.000
$ 500.000
Property Insurance
90% value of
buildina
( ) Extended coverage
( ) Vandalims and Malicious Mischief
( ) Flood
( ) Earthquake $
3
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( ) Debris Removal
( ) sprinkler Leakaqe
( ) Windstorm
( ) Other
Aircraft Liability (bodily injury and
property damaqe.)
( ) passenqer Liability (per seat) $
Ocean Marine
Ocean Marine Liability
( ) Protection and Indemnity
( ) Runninq Down Clause
( ) Pollution
( ) Jones Act
( ) Wharfinqers Liability
( ) Carqo
( ) Inchmaree Clause
( ) Charter's Leqal Liability
( )
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Fire Leqal Liability
Fidelity Bond
KJH/lab/0255
4
$
$
$
90t of cost
of renlace-
Dlent..
$ 25.000
minimum