HomeMy WebLinkAboutS04-Community Development
(.a.V Of -SAN aa;HNAtu)lNO - REQUE5T fOR COUNCIL ACTiON
'rom: Itenneth J. Henderson, Director
>.pt: COlIJDuni ty Developllent
)ate: February 2, 198t
Sub) . nrT.
~: _ ~~ '.\'PpROV~ or SHALL BUSINESS
f.~cl). ~,"li>ESIGN BY HONG. I.
":illl> -_. - or ."....... ~
;ynopsll of Previous Council action:
Hone.
~ecommended motion:
Adopt Resolution
Contact pellon:
~upporllnll dati Illached:
Ken Henderson
Phona:
5065
staff Report
Ward:
1
FUNDING REQUIREMENTS:
Amount:
$35,000
Source: (ACCT. NO.)
(ACCT. DESCRIPTION)
121-547-57963
Small Business Loan Fund
Finance:" /) JJ...~~/
~ouncll Noles:
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Agenda Item No.
5-'/
,CiTY OF SAN BERNODINO - REQUEST Fa COUNCIL ACTION
STAFF REPORT
Companv
DESIGN BY MONGE
Description of Companv
Design by Monge has been in business for a period of twenty
(20) years (established on June 1, 1968). The company is a
sole proprietership owned and operated by Gloria Aguirre.
Located on the west side of San Bernardino, the company has
been specializing in catering to the ethnic community. The
company sells bridal outfits which are usually ordered
several months in advance of sales. These items are spe-
cially designed to meet the specific needs of the bride-to-
be.
Ms. Gloria Aguirre has been trained by the original owner of
the store (her mother) for a period of six (6) years. For
the next fourteen (14) years of the store's existence, Ms.
Aguirre worked with the various manufacturers, thereby
forging a close working relationship from which her customers
would benefit.
Amount and Purpose of Loans
The company is requesting a loan of $35,000 to retire its
accounts payable. Though the company has experienced a
steady income stream with moderate increases throughout the
last three (3) year period examined, performance was over-
estimate based on a simultaneous receipt of goods and
initiation of advertising campaign. The over estimate on
performance was based on the expected results of the
advertising campaign. A backlog of orders was created due to
the under performance. The backlog was never corrected.
Since the market is for specialty products, the backlog could
not be adequately rectified. The purpose of this loan is to
retire the debt created with the manufacturer of the
backlogged product.
Collateral
The loan will be collateralized by deeds of trust on the
business owner's residential property located at 2963 Orange
Street, Highland, California, and the business property
located at 1258 West 5th Street, San Bernardino, whichever is
most advantageous to the City. The loan-to-value ratio will
not exceed eighty percent (80%) of the value of the col-
lateral including existing encumbrances.
Job Creation
The company intends to create one (1) full time position and
one (1) part time position.
February 2, 1989
75-0264
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Affect on Companv
This loan will result in the company being able to continue
receiving goods on a credit basis. Currently, the company
needs to re-establish a good working relationship with the
manufacturers of bridal outfits. Once this debt has been
satisfied, the company can become more creative in the types
of outfits it purchases.
A more vigorous campaign of advertising the products of other
manufacturers may be engaged in, once the debt to current
manufacturer is satisfied.
Additional Stipulations
The Economic Development Program Committee (EDPC) stipulated
as a condition of the loan that the cost of appraisals of the
properties be borne by Designs by Monge. Also, the dis-
bursements of the loan proceeds to the creditors to be
controlled by the Community Development Department. Such
payments will be made directly to the suppliers/vendors by
the Department.
The reason this item was placed on the supplemental aqenda is
that the loan applicant requires a decision bv the Mavor and
Common Council bv no later than Februarv 20. 1989. Althouqh
this item was submitted in time for the reqular aqenda. the
internal review process was not completed prior to the
reqular aqenda qoinq to print.
Recommendation
I recommend adoption of the resolution.
Development
KJH/lab/3030
February 2, 1989
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DIRECTING .'nre ~)cllC&rI(Jftt~.1. 'SM.II 'AI eU$ N?S'LOAN AGREEMEN'l'
BETWEEN Till: qT(Of'S!Jl~~B!~~AAq,TJ!~,j\}f~~;b~~~GN BY MONGE,' 1.N. THE
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, ,'" BE, ~'l:' ,RESO~VEO BX Tij.~~i'OR),ND....COMMON COUNCIL or THE CITY
,OF ~,AH ,B.~~~l:lI~t,).S F()!<Ifl~fil~""<';:;;:;" "
..:....;:~,.);Eci~H ".;'.;: '~~. ')i.it~Y~~f~.~~Cit.Y:;o.~ 'san: ~ard.lno -~.. '
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hereby authorized ~o execut.; on'beha1f'of th.elty'of~&6' ,
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Bernardino, ~ smail business, loan agreement'with Design by
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Monge, a copy of which 1Qa~agree~erit is annexed bereto ~.
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Exhibit n'i.. and i~ incorporated her,ein ,by reference as ,though
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fully set forth at 1ength'.- Th$' ag'reement provides for the
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loaning of fUl)ds from theslllall ~usiness10an pr09ra~lnthe
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amount o'f $35,000.00.
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I HEREBY CERTIFY that.the foregoing resolution was duly
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adp~ted b,y' the 'Mayor and C?DOri co~n9il of the . city of san,
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Berna:.rdino"~~;~', "~",,,:,~;."~j:>~":' H'. JiieetiheJ 'thereof. 'h,eldon the
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fat.:~f '" :~' .-J, f ", . .'.; " ':~~~.~! );>y.tf.e followinq vote
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ABSENT:
City Clerk
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~H/lab/3032 .,: _ :.,:" f:"::.',;.:;,;~:. .'
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The foregoing re.olutlon i. hereby approved thi.
day of
, 1988.
Mayor, City of San Bernardino
Approved as to form and
legal contents
City Attorney
l<JH/lab/3032
February 2, 1989
2
BORROWER:
PROJECT TITLE:
PROJECT ADDRESS:
LOAN IS NUMBER
CONTRACTS.
KJR/lab/0256
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CITY or SAM BUHARDINO
COMMUNITY DEVELOPMENT DEPARTMEJf'f
-Economic Develop.ent Progr..-
(IDB Fee-Financed)
DESIGN BY MONGE
,
J.IOUIDATE ACCOUNTS PAYABLE DEBT
125ft WERT 5TH STREET
SAN BERNARDINO. CA 92411
1989-001
OF COMMUNITY DEVELOPMENT
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EXHIBIT "1"
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TABLa or
O~gll%I.%1
Section
NUWlher
Titl.
SBCTION I
PARTIES, TERM, CONDITIONS PRECEDEJIT
AND INDEPENDENT STATUS
S101.
S102.
Partie. to the Agr....nt
Representative. 'of the Partie. and
Service of Notic..
S103.
S104.
Ten of this Agreement
Conditions Precedent
S105.
Independent Contractor status of
the Borrower
8ECTION II PURPOSE OF AGREEMENT AND LOAN, LOAN
TERMS, AND PROMISSORY NOTE
8201.
Purpose of the Agreement
Purpose of the Loan
Tens of the Loan
8202.
S203.
8204.
Promissory Note
SECTION III REPRESIQfTATIONS AND COVENANTS OF
BORROWER, AND DEFAULT
8301.
8302.
Representations of the Borrower
Covenants of the Borrower
8303.
Default
8ECTION IV REPORTS, RECORDS AND AUDITS
8401.
Reporting Requirements
Maintenance of Records
8402.
8403.
Audits and Inspections
Validity of Financial Documentation
Submissions
8404.
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7
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11
Section
ll'umber
S405.
S406.
SECl'ION V
S501.
8502.
8503.
8504.
8505.
8506.
8507.
8508.
8509.
8510.
8511.
8512.
8513.
8514.
5515.
5516.
5517.
5518.
5519.
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TABLI OCONTIH'1'8 (Cont...)
Titlt
Releas. of Funds froa Escrow
Reconveyanc. 'e.
GENERAL TERMS AND CONDITIONS
Indemnification and Insuranc.
Requirements
Prohibition Against Assignment
Limitation of Corporate Acts
Amendments and Waivers
Compliance with statutes and
Regulations
Conflict of Interest
Political Activity Prohibited
Lobbying Prohibited
Installation of Financial Assistance
sign
Press Releases
Discrimination Prohibited
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12
12
13
13
14
14
14
16
16
16
16
16
Nondiscrimination, Equal Employment 17
Practices, and Affirmative Action Plan
Employment Opportunities for Business 17
and Lower Income Persons
Participation of Minorities, Women and 18
Small Businesses
Captions 18
Effect of Legal Judgment 18
Choice of Law Governing this Agreement 19
Prohibition of Legal Proceedings 19
Rights and Remedies 19
u
Seotion
WUmb.r
TABWOr CON'l'lHTl (Cont. eo)
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Tith
SBCl'IOH VI ENTID AGREEMENT
5601.
5602.
~/lab/0257
Complete Aqreement
Number of paqes and Attachments
Execution (Siqnatur.) paq.
ATTACHMENTS
Attachment I
Employment Action Plan
Attachment II -- Insurance Requirements
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AGruCmrr NUMBIR
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1989-001 ~
BE'lWEEN THE CITY OF SAN BERNARDINO AND THE
IlESIGJ BY MONGE
<..... Monge'. Bridal)
(RELATING TO) THE.
PROJBCl
LIQUIDATION OF ACCOUNTS PAYABLE
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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 DEllICK. BY MONGE
hereinafter called the "Borrower".
,
lf17HliilIB
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 ~mmunity Development Act of 1974, as amended, hereinafter
referred to as HCDBG, to address the community development needs of
the CitYI 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
pr~ams 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
gove~ental jurisdictions in carryinq out certain functions and
pr~ams 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 ("EOP"), 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:
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81C'l':ION J.
PARTIES. TERM. CONDITIONS PRECEDENT. AND INDEPENDENT STATUS
8101. Parties to the Aareement.
The partie. to this Agreement arel
1. The City of San Bernardino, a municipal corporation,
having it. principal office at 300 North aD- Street, San
Bernardino, California 92418.
2 . The Borrower, Des i gn by Monjte
having its principal address at 125 Welt 5th Street
san Bernardino, CA 92411
,
.
The Borrower is ( a) sole fro~ietorship
(fictitious name enterprise, ndividual, california
Corporation/general partnership/limited partnership.)
S102. ReDresentatives 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:
Xenneth J. Henderson, Director
Community Development Department
300 North -D- Street, Fifth Floor
San Bernardino, CA 92418
2. The representative of the Borrower shall be:
Gloria Alwirre
1258 We&~ 5~h Street
San Bernardfnn. CA 92411
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 re-
quested 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
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days of niUbange.
8103. Term of this Agreement.
This Agreement shall remain in tull torce and ettect tro.
the date ot execution by Borrower ot the PrOlli..ory Note,
until such time as .aid Promissory Note is paid according to
its terms, subject to the provisions ot S303 herein.
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Conditions Precedent.
Prior to the execution ot this Agreement, the Borrower shall
submit to 'the City tor approval in writing an Attiraative
Action Program Plan in accordance with section 512 herein.
In the event that Borrower i. a corporation, then prior to
the execution of this Agreement, the Borrower shall provide
the city with copies ot the tOllowing docuaents:
1. Borrower's Articles ot Incorporation, and all amendments
thereto, as filed with the Secretary of state.
8104.
B.
2. Borrower's By-Laws, and all amendments thereto, as
adopted 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 nameCs) of the personCs) 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.
S105. Indeoendent 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.
SECTION II.
PURPOSE OF AGREEMENT AND LOAN, LOAN TERMS, AND PROKISSORY NOTE
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8201.
PurDose of
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the Agreement.
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The purpose of th18 Agreement 18 to provide THIRTY-1IVlI
ND 00 0 ----------------------------------.-------- ~llars
(35,000.00 ) of IDP fun. to oaned by . C ty to the
Borrower, hereinafter called the "Loan", for the purpose and
under the terms and condition. set forth herein.
8202. PurDOse of the Loan.
The purpose of the Loan i. to provide financial assistance
to enable the Borr~er to:
1. LiquidRte Accounts psyahle debt.
5203. 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
THIRTY-FIVE THOUSAND AND OO/lOO-----un--- DOLLARS, ($35,000.00 ),
such transaction hereinafter referred to as the "Loan". The
Loan is to be evidenced by, and made against delivery of a
Promissory Note executed by the Borrower, hereinafter called
the "Note" and by this reference incorporated herein.
B. The Note shall (a) be dated as of the closing, (b) bear
interest on the unpaid principal at the rate of eight percent
( 8t) per annum, (c) be for a term of ten ( 10 )
years, and (d) provide for payment of the principal amount
thereof and the interest thereon in One-hundred, twenty
( 120) equal monthly installments of FOUR HUNDRED, TWENTY-FOUR
AND 65 100----------------------------_______________________DOLIJURS
($ 424.65 ), each includ ng principal and nterest, and
continuing until said principal and interest are paid in
full.
C. Each monthly installment shall be applied first to the
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payment of interQ then accrued to the da~e PAyment 1a
received, and the balance, if any, to the reduotion of the
principal.
S204. Promissory Note.
A. The obligation of the city to aake the Loan b subject to
receipt by the City of the Note and, at the City's sole
discretion, to the followinq additional conditions
precedent:
1. Th. representations and warranties aad. herein by the
Borrower shall be true and correct at tJae ti.e of
consideration by the Mayor and COlDlDon council of the
City of San Bernardino with the sue effect a. though
made at the Closinq.
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. Deed of Trust
a) Residential Property
b) Business Property
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
THIRTY-FlVE THOUSAND AND 00/100 DOLLARS, ($35,000.00 ), and
that no 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.
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8ZC'1'ION III.
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REPRESENTATIONS AND COVENANTS OF BORROWER. AND DEPAUL'l'
S301. Representations of the Borrower.
To induce City to enter into this Agreement, Borrower
covenants and represents to City thatz
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, vaUd and
binding obligation of Borrower, enforceable in
accordance with it. tenq. The execution and deUvery
of this Agreement and the note, and consUlllllation of the
transaction. herein contemplated, will not conflict
with, or result in a breach of, any of the teras,
provisions or conditions of any indenture, contract,
instrument or agreement, including any partnership
agreement, to which Borrower or any of it. 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 S2048 of this Agreement, located
at 2963 Oran e Street Hi !lland (Residential ). 1258 West 5th 'BUSiness)
San Bernard no, Cal forn a, and t s free and clear
from all liens except as set forth
herein: Ameristar Financial Cornoration
.
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
with the rights of others.
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
adverse effect on the business or properties of Borrower.
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Zach and every Oancial .tata.ant dOCUII.wan4 record
delivered by Borrowar to tha City In connection with this
Agreement and tha proposad transaction hereundar i. a true
and complete copy of said financial state..nt, docuaent or
record, and fairly and accurataly reflects the inforaation
it purport. to portray. Thera ha. been no charl9a in the
condition, financial or otherwi.., of Borrower a. shown in
the financial statement. dated Novemher. 19118 ,
except changes in the ordinary cour.e of busine.., none of
which, individually or in the aggregate, has been aaterially
adverse.
8302.
Additional Covenant. of"th. Borrower.
Borrower covenant. and agree. that, from the data 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
desireable 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
S204B herein, then Borrower agrees to ..intain 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.
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
ordinances as further defined and set forth in Section
505 of this Agreement.
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t. In the event that Borrower i. a corporation, then
Borrower shall do or cau.e to be done all thincJ. nece.-
sary to preserve and keep in tull torce and ettect its
corporate existence, right. and tranchise..
10. Not violate any law., ordinances, governaental rules or
regulations to which it i. subject and not tail to
obtain any license., permit., tranchises or other
governmental authorization necessary to conduct it.
business, which violation or tailure to obtain .ight
have a uterial adver.e ettect on the busine.s, pro-
spects, protits or condition (tinancial or otherwise) ot
Borrower;
11. Submit an Annual Employment Report on or betore the
fifteenth (15th) day ot June for the year(.)
198'1 (continu{n,,:> . The Annual Employment Report shall
detail 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
coverage(s) shall be in accordance with the general
insurance provisions of this Agreement as specified in
S50lB.5, including fire, hazard and general
comprehensive liability insurance, worker'.
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 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 Attorney by certified mail.
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,
respectively, before the same shall become in default.
8303. Default.
A. The entire unpaid principal of the Note, and interest then
accrued thereon, shall become and be forthwith due and
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payable upon vrOen demand by the City or Oe 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 continuinq at the time of such demand, whether volun-
tarily 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 requlation or any governmental body,
provided however that such sua shall not be payable if
Borrower's payments have been expressly extended bY the City
or the City's assigns. -Events of Default- shall.Includel
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
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.i1ar 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
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
creditors; (ii) of proceedings for the appointment of a
receiver, trustee or liquidator of Debtor, or of a
substantial part of its assets, being authorized or
instituted by or against it; or (iii) of proceedings
under any bankruptcy, reorganization, readjustment of
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debt, insol~cy, di.solution, liquidat~ or other
si.ilar law of any jurisdiotion being authorized or
instituted by or against the Borrower.
7. A cessation or .ubstantial reduction of operations in
the business which is the subject of this Aqreellent
under circumstances indicative to the City of . lack of
intention or ability to provide continuing e.ployment
and economic benefits for the area in which the busine.s
is located.
8. Failure to sub.it the Annual bployment leport referred
to in 8302 (12) within ninety (90) ~ays of the scheduled
due date for said Report.
9. The loss, theft, substantial damage, destruction,
abandonment, sale or encumbrance to or of any of the
collateral securing payment of the Note, in any manner
not fully covered by insurance, or the aaking 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
5401. ReDorting Requirements.
A. At such times and in such forms as the City aay require,
there shall be furnished to the city such statements,
records, reports, data and information as the City .ay
request pertaining to matters covered by this Agreement.
B. Borrower will provide its financial and accounting
statements to the City for the period ending
December, 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.
5402. 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
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six (6) years .(:)er ter.ination of this A~nt and after
all other pending matters are closed. -Pendinv Matters- in-
clude, but are not limited to, an audit, litigation, or
other actions involving records. The City ..y, at it.
discretion, take possession of and retain said record..
B. Records in their original for. pertaining to utter. covered
by this Agreement .ha1l at all times be retained within the
City of San Bernardino, or .ome other location specifically
authorizing in writing by the Director of Coaunity
Development, unle.. authorhation to remove th.. is granted
in writing by the City.
S403. Audits and InsD8ctions.
A. At any time during normal busine.s hours and as often as the -
Grantor, the u.s. Comptroller Cenera1, Auditor Cenera1 of
the state of Califor~ia 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 Ceneral shall
have the authority to audit, examine and make excerpts or
transcripts from records, including all contracts, invoices,
materials, payroll., 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 safequardinq devices as
locks, alarms, safes, fire extinquishers, sprinkler system,
etc., to safequard 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 quarding of the business and
its property.
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.
S4 05. 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,
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credit reports ~), Titl. Report., or oth~i.il.r eost.
sball be delineated in the escrow instruction. and disbur.ed
from tbe loan proceed. upon opening of the .scrow account.
8406. Reconvevance Fee
In tbe event that real property i. used to s.cure thi. Loan,
then Borrower agree. to pay any cost. incident to tit1.
reconveyance, including, if app1icab1., trust..'. f...,
attorney tees, document preparation fee., recording fe.. or
any otber related expense..
8EC'l'ION V.
GENERAL TERMS AND CONDITIONS
8501. Indemnification and Insurance Reauirements.
A. Indemnification:
The Borrower undertakes and agrees to defend, indemnify and
bold barmless the city and any and all of the City'.
officers, agents, employees, assigns, and successor. 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'.
officers, agents or employees. City approval 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
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
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under this ~eement. The City'. Addi~al J~ured
Endorse.ent fOrll, or a fora approved by the City,
stating that the Borrower i. .0 insured, mu.t accompany
any demand for fund. unle.. .aid form bas been pre
viously subllitted and approved by the City. (Certifica
tion of insurance shall be procured, filed and approved
in strict compliance with City rules and regulation..)
With respect to the interesta of the citI' .uch in
surance shall not be cancelled, reduced n coverage or
limited or non-renewed, except after thirty (30) day.
written notice by receipted dslivery bas been given to
the Office of the City Attorney, City Ball, 300 Horth
-D- Street, San Bernardino, CA 92418. Policie. of
insurance and fidelity bond., except for policie.
covering Worker's Compensation and Employee.' 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.
The City reserves the right at any time during the tel'1ll
of this Agreement to change the amounts and types of
insurance required hereunder by giving Borrower ninety
(90) days written notice.
The Borrower shall maintain minimum insurance coverages
prescribed in Attachment II of this Agreement, which by
this reference is incorporated herein.
5502. Prohibition Aqainst Assiqnment.
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3.
4.
5.
A. 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.
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.
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In the event thDBorrower 1. a corporatioaQ... the
Borrower ahall not a..nd it. Articl.. ot Incorporation or
Bylawa, lIove to db.olv., tranater any a.aeta d.rived tro.
tunda provided und.r this Agr....nt, or take any oth.r .tep.
which may lIaterially attect it. operation. within the
pertormance of this Agree.ent without tint notityiftIJ the
City in writing. Th. Borrow.r .hall notify the city
immediat.ly in writing ot any Chang. in the Borrow.r'.
corporat. nalle.
8504. Amendment. and Waivers.
This Agreement .ay not b. chang.d or a.ended orally, and no
wal vel' hereunder lIay be oral, but any change or amendment
hereto or any waiver hereunder must be in writing and .igned
by the party or parties against whom such change, amendment,
or waiver i. sought to be ~ntorced.
8505. CO.Dliance with statutes and Requlations.
A. 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 state of California, the County and City of San
Bernardino including laws and regulations pertaining to
labor, wages, hours and other conditions ot 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.
S506. 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
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3. The participation of such penons would be prohibited by
the California Poli~ical _efora Ac~, california
Government Code Section .7100 e~ seq., if such person
were a publio officer, because such person would have a
"financial or other interes~. In the subcontract.
B. Definitions:
1. The tera "immediate family" includes, but is not limited
to, those persons related by blood or aarriage, such as
husband, wife, father, mother, brother, sister, son,
dau.ghter, father-In-law, .otherln-law, brother-in-law,
son-in-law and daughter-In-law.
2. The tera "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.
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 foner director,
officer, or employee within a one (1) year period following
the tenination 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 Bernar
15
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dino, state of d:Jifornia,
conflict of intere.t.
G. The Borrower warrant. that it has not paid or given and will
not payor give to any third penon any money or other
consideration for obtaining this Agreement.
@\
and rederal regu~ion regarding
H. Th. Borrower covenant. that no member, officer, e.ployee of
Borrower shall have any intere.t, direct or indirect, in any.
contract or .ubcontract of the proceed. thereof for work to
be performed in connection with this project during hi./her
tenure as such employe., meJDber or officer or for one (1)
year thereafter.
r. The Borrower shall incorporate the foregoing subsections of
this section into every agreement that it enter. into in
connection with this project and shall substitute the term
"subcontractor" for the term "Borrower" and "Sub-contractor"
for "Subcontractor".
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
election or defeat of any candidate for public office.
S508. Lobbvina 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.
S509. 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 Depart
mente
S510. 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.
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
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be lubjecteel to Q.ertaination under thb ~r.. /project.
ror purposel ot thi. Section, title 24, Code ot reeleral
Regulation. section 570.601(b) detine. .pecitio
dilcriminatory actien. which are prohibiteel and correction
action which shall be taken in .ituation. a. detined
therein.
8512. Nondiscrimination. Eaual ~plovment Practice. and Atfirma
tive Action Proaraa.
The Borrower Ihall eomply with the nondiscrimination and
affirmative action provision. of the law. ot the Uniteel .
states of America, the State ot California, and the City. In
pertorminq this Agreement, the Borrower shall not 411
criminate in its employment practices against any e.ployee,
or applicant for employment because of person'. raca,
religion, ancestry, eolor, 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.
S513. Emolovment 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-et~'f968, 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 preject 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 has a collective
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bargaining a~...nt or other contract ~understanding,
it any, a notice advising the said labor organization or
worker's repr...ntative of it. coaaitaenta under thi.
section 3 claus. and shall post copi.. of the notice in
conspicuous places available to .mploy... and applicant.
for employment and training.
4. The Borrower will include thla Section , clau.e 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, tate appropriate action
pursuant to the subcontract upon a finding. tbat the .
subcontractor i. in violation of regulation. issued by.
the Secretary of Housing and Orban Develop.ent, 24 Cdi
Part 135. The Borrower will not subcontraot with any
subcontractor 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 provisions of section 3, the regu
lations set forth in Title 24 CFR, Part 135, and all
applicable rules and order of the Depart.ent 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 assiqns. Failure to tulfill these
requirements shall subject the applicant or recipient,
its Contractors and subcontractors, its successors and
assigns to those sanctions specified by the qrant 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.
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.
S515. CaDtions.
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.
S516. Effect of Leoal JudQ11lent.
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,
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condition or pr~.ion shall not in any WaY~fect any other
covenant, condition or provision herein contained.
S517. Choice of Law Governing this Aareement.
Thb Agreement shall be governed by ancS construed in accor
dance with the law. of the state of California.
sue. Prohibi tion of Lagal Proceeding..
The Borrower ia prohibited fro. u.i1\9 Grant funeS. received
under thia Agreement, or funeSs real.ized a. a r~.ult of thb
Agreement, for the purpose of insUtuUD9 lega~' proceediD98
against the City or its official representative.
851'. Rights and Remedies.
In the event any party fail. to perform, in Whole or in
part, any promise, covenant, or agreement beren, 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.
ENTIJU! AGREEMENT.
8601. Complete Aareement.
This Agreement contains the full and complets 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.
S602. Number of Paaes and Attachments.
This Agreement is executed in three (3) duplicate originals,
each of which is deemed to be an original. This Agreement
includes, ""enty ( 20) pages and
two ( 2) attach:&ents which
constitute the entire understanding and agreement of the
parties.
IIII
IIII
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IN WITNESS IrHERO" the City of San 8ernardlio anet thee
IorlNOwer have-caused this Agreement to be executed by their duly
authorized representative. on this day of
, 1'_0
.
ATTEsT:
CITY or SAI BERNARDINO
City Clerk
Jlayor
(CORPORATION)
BY
Corporate President
A'1"1'EST:
BY
Corporate Secretary
Approved as to tOl'll
and legal content:
BY
City Attorney
ltJR/lab/0683
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ATTACHMEH'l' I
"EMPWYHENT ACTION PIAN"
Economic Development prograa
laployment Action Plan
Statement ot Borrower
Borrower does hereby .ta~e that the funds re.ultil\9 troa
the Loan Agreement entered into on behalf of the City ot San
Bernardino (hereinatter "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-
alne 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
'<J
{?)
,.-
'-" ATTACHKBM'l' II
INSU1WICE REQUIREMENTS
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(Instructions for completing, executing and .ubaitting Evidence of
Insurance to the City of San Bernardino.)
Insured:
(Contractor, Lessee, Permittee, Borrower, Etc.)
Agreement/lteference N~.
Date:
."
A. INSURED
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
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 fora 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. Certificate.,
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
4.
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Underwriter -- rhrC na.. and aeSdre.. of the iir.uranoe oo.pany
underwriting the coverage .u.t be not.d on the .ndor....nt
fora. In the caee of syndicates or subscription polioi.s,
indicat. lead underwriten or aanagift9 Agent and attach a
schedule of sub.criber., includift9 their percent pArticipa-
tion.
(c:l)
.
5.
Document Reference -- Includ. reference to .ither the
specific City agree.ent (bieS, contrAct, lea.., .tc.) or
indicate that all such agreements Are coverecS.
Insuran~e Requirementsl
S. Coverage and Liait. Th. coverages And luits for each
type of insurance are specified on the insuranc. requirement
sheet. When coverage is on a scheduled basi., 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.
a. 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 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.
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INSURANCB REQUIREMENTS
(Attachllent II)
--
-
NAME
AGREEMENT/REFERENCI NUMBER
DATE
Tbe following coverag.. noted with an .X. are required with the
Coabined Single Liait. (CSL) a. noted on the right.
Worker'. Compensation
Employers Liability
( ) Broad Fora All States Endorsement
e ) Voluntary Compensation Endorsement
e ) Longshoremen's and Harbor Workers'
Compensation Act Endorsement
e )
Lillits
statutory
S 100.000
Ceneral Liability
e ) Premises and Operations
e ) Contractual Liability
e ) Independent Contractors
e ) Products/Completed Operations
e ) Broad Fora Property Damage
e ) Personal Injury
e ) Broad Fora Liability Endorsement
e ) Fire Legal Liability
e ) Watercraft Liability
e ) Incidental Medical Malpractice
(if applicable)
e ) Explosion Hazard
e ) Collapse Hazard
e ) Underground Hazard
e ) Garagekeepers Legal Liability
( ) Hangar Keeps Legal Liability
e ) 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
$ 500.000
90\ value of
buildincr
( ) Extended Coverage
( ) Vandalims and Malicious Mischief
( ) Flood
( ) Earthquake $
3
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( ) Debri. RelDoo.O
( ) Sprinkler Leakag.
( ) 1find.ton
( ) Other
Aircraft Liability (bodily injury and
property damage.)
( ) Passenger Liability (per seat) $
Ocean Marine
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Ocean Marine Liability
( ) Protection and Indemnity
( ) Running Down Claus8
( ) Pollution
( ) Jones Act
( ) Wharfingers Liability
( ) Cargo
( ) Inchmaree Clause
( ) Charter's Legal Liability
( )
Fire Legal Liability
Fidelity Bond
JOH/lab/0255
..
'-
s
s
.
90t of cos1<
of reDlace-
ment.
S 25.000
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