HomeMy WebLinkAbout1988-038
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1 RESOLUTION NO. 88-38
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH VAL MAHABIR TO PROVIDE SMALL
3 BUSINESS LOAN ASSISTANCE AND LOAN OFFICER SERVICES FOR THE
COMMUNITY DEVELOPMENT DEPARTMENT.
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
5 OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Mayor is hereby authorized and directed to
execute on behalf of said City an Agreement with Val Mahabir to
provide small business loan assistance and loan officer services,
a copy of which is attached hereto, marked Exhibit nAn, and
incorporated herein by reference as fully as though set forth at
length.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
re9Ular
meeting thereof, held on
the 15th day of
February
, 1987, by the following
vote, to wit:
Council Members
AYES:
Estrada. Reilly. Flores.
Maudslev. Minor. Pope-Ludlam. Miller
NAY S :
None
ABSENT: None
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..I,.' .Agreement With Val Mahabir-SBA
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1 The foregoing resolution is hereby approved this /,7/A- day
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Fpnrllrlry
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of San Be~ ardino
5 Approved as to form
and legal content:
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c~ Attorne
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AGREEMENT
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THIS AGREEMENT is made and entered into this
day of
~!-J~liVti'l /,'t-~ c.L-, 1988, by and between the CITY OF SAN
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BERNARDINO, a munl.cl.pal corporatl.on, 300 North "D" Street, San
Bernardino, California, referred to as "City" and VAL MAHABIR, an
individual, referred to as "consultant".
City and consultant agree as follows:
1. General Description of Work to be Done. City hereby
9 retains consultant to perform the job of Loan Officer, Small
10 Business Loan Program and engage in certain economic development
11 and marketing activities, in accordance with guidelines as
12 established by the Mayor and Common Council and the Director of
13 Community Development, a copy of which is attached hereto as
14 Exhibit "1". Such services shall include but are not necessarily
15 limited to the following:
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(a) Consultant shall review, analyze and make written
17 recommendations to the Loan Review Committee with respect to
18 individual applications for financial assistance.
19 (b) Consultant, under general direction, shall market
20 the Community Development Department Economic Development Small
21 Business Loan Program through meetings with local lending
22 institutions, design of appropriate brochures and close
23 coordination with Small Business Administration and the Minority
24 Business Development Agency.
25 (c) Provide technical assistance to eligible small
26 businesses including, but not limited to, financial management,
27 inventory control and marketing.
28 (d) Participate in the development and submission of
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1 Urban Development Action Grants (UDAG), Economic Development
2 Administration (EDA) grants for use by City in locally approved
3 community development, economic development and redevelopment
4 projects.
5 (e) Consultant shall engage in other compatible
6 activities in accordance with guidelines as established by the
7 Mayor and Common Council and the Director of Community
8 Development.
9 2. Termination of Aqreement. Either party may terminate
10 without cause and for any reason this agreement by giving fifteen
11 (15) days advance written notice of termination to the other
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13 3. Term. The term of this agreement is for a maximum of
14 six (6) months, commencing on or about February 1, 1988, and
15 continuing for one-hundred, eighty (180) consecutive days
16 concluding on or about June 30, 1988.
17 4. provision for PaYment. Payment to consultant for
18 services provided under this agreement shall be at the rate of
19 $20.98 per hour and in no event shall exceed $839.00 per week. In
20 addition, consultant shall be reimbursed for the use of his
21 personal automobile at the rate of $0.25 per mile for necessary
22 and appropriate activities. Consultant shall maintain
23 appropriate insurance on his automobile for use as business
24 related transportation and shall provide evidence of same to the
25 Director of Community Development, (hereinafter "Director").
26 Consultant shall maintain and file with the Director a record of
27 hours expended on assigned duties and the Director of Community
28 Development shall submit a claim or request for payment to the
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1 Finance Department every two (2) weeks. Consultant shall provide
2 services for at least one-hundred, sixty (160) hours per month.
3 Notwithstanding the foregoing, consultant shall devote all hours
4 necessary to implementing the Community Development Department
5 Economic Development Small Business Loan Program and other
6 activities as described hereinabove. Consultant shall assume and
7 pay all out-of-pocket expenses and costs of performing services
8 under this agreement and City shall not be liable for such costs
9 and expenses without the advance written notice of the Director.
10 5. Amendments. This agreement may be amended or modified
11 only by written agreement executed by both parties.
12 6. Assignment. Consultant's rights under this agreement
13 shall not be assigned by consultant to any other person, firm, or
14 corporation without the prior written consent of the City.
15 7. Relationship of Parties. Consultant is acting as an
16 independent contractor, and not as an employee of the City. In
17 the performance of personal services pursuant to the provisions
18 of this agreement, consultant shall not be supervised, or under
19 the control or authority of any City officer or employee. Any
20 direction by any City employee shall be limited to broad
21 objectives or goals of the project or program to be accomplished
22 and not to the details and procedures to accomplish such
23 objectives or goals. Changes or modifications of said objectives
24 and goals may be made by written recommendations of either party
25, subject to the concurrence of the other party in writing.
26 8. Hold Harmless. Consultant hereby agrees to, and shall
27 hold City, its elective and appointive boards, commissions,
28' officers, agents and employees, harmless from any liability for
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1 damage or claim for damage for personal injury including death as
well as from consultant's operations under this agreement.
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3 Consultant agrees to, and shall defend City and its agents and
4 employees from any suit or actions at law or in equity for
5 damages caused or alleged to have been caused by reason of
6 consultant's performance hereunder, including any claims that may
7 arise against city by reason of consultant's legal relationship
8 with City being categorized as other than that of an independent
contractor.
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11 instruments attached hereto or referred to herein integrate all
12 terms and conditions mentioned herein or incidental hereto, and
13 supersede all negotiations and prior writing in respect to the
14 subject matter hereof. In the event of conflict between the
15 terms, conditions or provisions of this Agreement, and any such
16 document or instrument, the terms and conditions of this
17 Agreement shall prevail.
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Entire Agreement.
This Agreement and any documents or
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1 IN WITNESS WHEREOF, the parties have executed this
2 agreement on the day and year first above written.
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CITY fr SAN BERN~RDINO
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By (/I/Aj~/ ~f--"/L/, t l/u.V
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3 ATTEST:
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CONSULTANT
By
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Val Mahabir
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Approved as to form
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Ci torne
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THE CITY OF SAN BERNARDINO
COMMUNITY DEVELOPMENT DEPARTMENT
ECONOMIC DEVELOPMENT PROGRAM
"GUIDELINES"
FOR SMALL BUSINESS REVOLVING LOAN FUND
The Economic Development Program (EDP) is established to enhance
economic activity, encourage the growth of small business and to
promote the physical revitalization of City of San Bernardino as a
whole, with particular emphasis in economically depressed areas.
The major goal of this program is to improve the overall economic
growth and availability of jobs, goods and services to all city
residents.
General Program Features
1. The maximum amount of EDP participation in a single project is
$50,000, the minimum loan is $10,000. Loans for amounts less
than $10,000 will be considered on a case by case basis for
equipment purchases only.
2. The EDP will fund a loan for no more than thirty-five percent
(35%) of the total project.
3. The minimum matching requirement of private financing to EDP
injection is one dollar ($1.00) private financing for each one
dollar ($1.00) of EDP financing.
4. The business concern (loan applicant) must have been in
business for at least three (3) years, unless there is strong
evidence of recent experience in the same or an allied
business.
5. Loans for business start-ups will be considered on an exception
basis, and only in conjunction with Small Business Administra-
tion assistance for same. Economic Development Program assis-
tance in most instances will be used to assist the client in
meeting Small Business Administration Loan Equity requirements.
6. The interest rate is negotiable, but shall not be less than
five-percent (5%).
7. The maximum loan term and repayment conditions shall be deter-
mined on a case by case method, based upon the financial status
of the borrower, i.e., cash flow analysis. In addition, the
loan terms and conditions of a participating financial institu-
tion may also be a basis for determining loan term and
repayment conditions.
8. Matching funds must be placed in an escrow account with the EDP
loan proceeds for disbursement. However, in cases where the
matching funds are provided by a private lending institution
(e.g., Bank), the matching funds may be disbursed by that
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EXHIBIT "1"
institution.
9. Matching funds may consist of a bank loan, or any other funds
from a non subsidized source.
10. Economic Development Program resources shall not be allocated,
divided or set aside for individual properties prior to loan
submittals. Funding is on a first-come first served basis.
11. Applicants will be charged a loan processing fee equal to one
percent (1%) of the amount of financial assistance requested.
Who Mav Applv
Applications will be accepted from small, minority and female-owned
businesses to physically improve commercial property and commerce
within the City limits. In certain rare cases, funding may be
considered for economically viable businesses. These businesses
may be sole Proprietorships, Partnerships or Corporations.
Selection criteria
Loan proceeds are to be used for commercial rehabilitation, pre-
servation and economic development activities which further the
City's overall economic development strategy.
Loan consideration shall be based on the following criteria:
1. Creation of jobs (low/moderate income).
2. Retention of jobs (low/moderate income).
3. provision of increased goods and services in the City.
4. Retention of goods and services in the City.
5. provision of physical improvements to eliminate blight.
The desired ration of increased jobs to loan proceeds is one (1)
job for each $10,000 in loan proceeds. Each project will be
reviewed on a case by case method.
Eliqible Activities
Eligible activities as defined under section 570.202(a) and (b) and
570.203 of the CDBG Regulations dated October 31, 1984, and as they
may be amended by HUD include, but are not limited to, the follow-
ing:
1. Interior and/or exterior rehabilitation, restoration or altera-
tion of commercial properties.
a) Leasehold Improvements
b) Seismic Improvements
c) Other Improvements
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2. Purchase of equipment.
3. Purchase of commercial property for expansion of an ongoing
business.
4. Working capital, if secured by physical assets, e.g., real
property or equipment.
5. Business expansion activities.
6. Refinancing of existing debt (non-construction).*
*The Community Development Department must first determine that
such activities are necessary or appropriate to carry out an
economic development project under Section 570.203 Activities. The
Community Development Department must first find that such financ-
ing is necessary and appropriate to achieve the recipient's
community development objectives.
Collateral
The collateral shall be identical to that required by the partici-
pating lending institution, where said collateral is adequate to
cover both loans, with the City willing to subordinate its rights
to the lending institution when necessary. Additional collateral
shall be required in cases where that held by the lending institu-
tion is not adequate to cover the City's interest. Such collateral
may be, but is not limited to, Trust Deeds, Equipment Liens, and
personal guarantees provided by the principals of the business. In
cases where a private lender is not participating in the project,
collateral must be adequate to cover the EDP loan.
Construction
1. All construction work must be performed under the guidelines of
the Davis-Bacon Act, which requires that all construction
employees are paid at least the prevailing wage for his/her job
classification.
2. The City shall not be responsible for the quality of
workmanship on construction activities or equipment purchases
utilizing the proceeds of the EDP. The borrower is responsible
for the selection of all contractors and vendors. However, the
City will make periodic inspections to ensure that the
contracted work has been performed and/or equipment has been
delivered as specified.
The Loan Committee
The EDP Loan Fund Advisory Board reviews all loan proposals which
have been recommended for funding by CDD staff. The committee is
comprised of eight (8) members, as follows:
1. Director (or his/her designee)
Community Development Department
(non-voting)
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2. Manager (or his/her designee)
Wells Fargo Bank of San Bernardino
3. Manager (or his/her designee)
Bank of America, San Bernardino Branch
4. Manager (or his/her designee)
Home Savings Bank of San Bernardino
5. Manager (or his/her designee)
Fist Interstate Bank of San Bernardino
6. Manager (or his/her designee)
Price Waterhouse of San Bernardino
certified Public Accountant
7. District Manager
Golden State Insurance Company
San Bernardino Office
8. Director, Institute
for Training and Development
San Bernardino Community College
All loan applications must be approved by a majority vote of the
committee in order to proceed to final processing.
The loan committee shall meet a minimum of one (1) time per month.
Dates to be determined by the Committee.
The actions of the Loan Committee are recommendatory only. Final
approval of the loan application, if granted, will be made by the
Mayor and Common Council of the City of San Bernardino.
KJH/lab/0250
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