HomeMy WebLinkAbout1987-254
RESOLUTION NO. 87-254
1 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH VAL MAHABIR TO PROVIDE SMALL
2 BUSINESS LOAN ASSISTANCE AND LOAN OFFICER SERVICES FOR THE
COMMUNITY DEVELOPMENT DEPARTMENT.
3
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
4 OF SAN BERNARDINO AS FOLLOWS:
5 SECTION 1. The Mayor and Common Council of the City of San
6 Bernardino is hereby authorized and directed to execute of
7 behalf of said City an agreement with Val Mahabir to provide
8 small business loan assistance- and loan officer services, a
9 copy of which is attached hereto as Exhibit "A" and
10 incorporated herein by reference as though fully set forth at
11 length.
12 I HEREBY CERTIFY that the foregoing resolution was duly
13 adopted by the Mayor and Common Council of the City of San
14
15
Bernardino at a
rt-'.gl~lrlr
meeting thereof, held on
20th
day of
July
, 1987, by the following vote,
16 to wit:
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AYES: Council Members Estrada. Reilly.
Flores, Maudsle~, Minor. Pope-Ludlnn,
HilJer
NAYES: None
ABSENT:
None
~~~M/
,,/ City Clerk
The foregoing resolution is hereby approved this <--"':;7/. (:..r-
24 day of
25
26
,Julv
-'-
, 1987.
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Approved as to form and
legaJ content:1
.?~,,-1- l,L
//"/ city Attorney
~JH/lab/0393
7/15/87
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AGREEMENT
THIS AGREEMENT is made and entered into this 02/ day of
~'AJ~ ' 1987, by and between the CITY OF SAN
BERNARDINO, a municipal corporation, 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
retains consultant to perform the job of Loan Officer, Small
Business Loan Program, in accordance with guidelines as
established by the Mayor and Common Council and the Director of
Community Development, a copy of which is attached hereto as
Exhibit "B". Such services shall include but are not necessarily
limited to the following:
(a) Consultant shall review, analyze and make written
recommendations to the Loan Review Committee with respect to
individual applications for financial assistance. The Mayor and
Common Council shall have ultimate authority~ for approval of all
loans.
(b) Consultant, under general direction, shall market
the Community Development Department Economic Development Small
Business Loan Program through meetings with local lending
institutions, design of appropriate brochures and close
coordination with Small Business Administration and the Minority
Business Development Agency.
(c) Provide technical assistance to eligible small
businesses including, but not limited to, financial management,
inventory control and marketing.
2. Termination of Agreement. Either party may terminate
EXHIBIT II A" 7 /15/87
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without cause and for any reason this agreement by giving five
(5) days advance written notice of termination to the other
party.
3. Term. The term of this agreement is for a maximum of
six (6) months, commencing on or about July 21, 1987, for one-
hundred, eighty (180) consecutive days concluding on or about
January 31, 1988.
4. provision for PaYment. Payment to consultant for
services provided under this agreement shall be at the rate of
$20.98 per hour and in no event shall exceed $839.00 per week. In
addition, consultant shall be reimbursed for the use of his
personal automobile at the rate of $0.25 per mile for necessary
and appropriate activities. Consultant shall maintain and file
with the Director of Community Development a record of hours
expended on assigned duties and the Director of Community
Development shall submit a claim or request ~ror payment to the
Finance Department every two (2) weeks. Consultant shall provide
services for at least one-hundred, sixty (160) hours per month.
Notwithstanding the foregoing, consultant shall devote all hours
necessary to implementing the Community Development Department
Economic Development Small Business Loan Program. Consultant
shall assume and pay all out-of-pocket expenses and costs of
performing services under this agreement and City shall not be
liable for such costs and expenses without the advance approval
of the Director of Community Development.
5. Amendments. This agreement may be amended or modified
only by written agreement executed by both parties.
6. Assignment. Consultant's rights under this agreement
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1 shall not be assigned by consultant to any other person, firm, or
2 corporation without the prior written consent of the city.
3 7. Relationship of Parties. Consultant is acting as an
4 independent contractor, and not as an employee of the city. In
5 the performance of personal services pursuant to the provisions
6 of this agreement, consultant shall not be supervised, directed,
7 or under the control or authority of any City officer or employee
8 except and to the extent as may be expressly or implicitly
9 required by the terms and provisions of this agreement. Any
10 direction or control so required under this agreement shall be
11 limited to broad objectives or goals of the project or program to
12 be accomplished and not to the details and procedures to
13 accomplish such objectives or goals. Consultant shall not be
14 obligated to conform to the supervision or direction of City
15 officers or employees which are authorized herein. Changes or
16 modifications of said objectives and goals m~1 be made by written
17 recommendations of either party subject to the concurrence of the
18 other party in writing.
19 8. Hold Harmless. Consultant hereby agrees to, and shall
20 hold City, its elective and appointive boards, commissions,
21 officers, agents and employees, harmless from any liability for
22 damage or claim for damage for personal injury including death as
23 well as from consultant's operations under this agreement.
24 Consultant agrees to, and shall defend City and its agents and
25 employees from any suit or actions at law or in equity for
26 damages caused or alleged to have been caused by reason of
27 consultant's performance hereunder, including any claims that may
28 arise against City by reason of consultant's legal relationship
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with City being categorized as other than that of an independent
contractor.
IN WITNESS WHEREOF, the parties have executed this agreement
on the day and year first above written.
CITZ4 BERN... ARD~~O.. .,
BY;_ ~ZUJ~
Mayor
CONSULTANT
BY:
//jj.// ,
VA i/V~
Val Mahabir
ATTEST:
~
~!'//// ~
./' City C erk
Approved as to form and
legal content:
(~ALA 14.-
o City Attorney
KJH/lab/0394
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7/15/87
Th_ 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
loan proceeds for disbursement.
matching funds are provided by a
(e.g., Bank), the matching funds
institution.
an escrow account with the EDP
However, in cases where the
private lending institution
may be disbursed by that
9. Matching funds may consist of a bank loan, or any other funds
from a non subsidized source.
EXHIBIT "B"
7/15/87
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 May Apply
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 c~ill 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
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.
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5. Business expansiora dctivities.
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)
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
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. . 6'. Man~ger (or his/h~_ 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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