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HomeMy WebLinkAboutR05-Economic Development Agency o a DEVBfAPMS1Q DEPAB'1l1811i OF TBB CIT4 OF SAA BEBHARDIi(0 QROUSST FOB COMMISSIOA/GOIHfGIL• ACTIOA From: IQ3AI~TH J. HBADEBSOA Sub3ect: APPROVAL OF A SMALL BUSIlO~SS Szecntive Director LOAA A6REiflffiIT FOY CYPRESS MOBILB 80M8 PAS Date: July 30, 1991 Synopsis of Previous Cosissioa/Couacil/Casrittee Aetion: On July 25, 1991, The 8conomic Development Program Committee took an action recommending approval to the Mayor and Cosmon Council of the small business loan request submitted by Cypress Mobile Home Park. Becommeaded !lotion: (Mawr and Caa~oa Council) RBSOLDTIOA OF THS MAYOR AAD COMMOA COUACIL OF THS CITY OF SAP B$BAABDIAO AUTHOBI2IA6 THS ERECOTIOA OF A SMALL BUSIABSS L04F A6BESMEAT - Q BETFlEBA THE CITY OF SAA BBBAABDIAO AAD CYPRESS MOBILE HOME PARR. stratos 103AI~TH J. RSOA, 8zecntive Dire for Contact Person(s): 1D Aenderaon/Doric Daniels Phone: 5081 Project Area(s): Aorthvest Nard(s): Six (6) Supporting Data Attached: ar.ss n.,~rr~ Beaoletion• Agreement FUADIAG BEQUIREMEATS: Amount: X50.000.00 Source: EDP Loan F:md Budget Authority: Co®issian/Commcil Aotes: RJH:AA:tnt:0088F COMMISSIOA AGSADA ® Meeting Date:08/05/91 Agenda Item Ao: " , ,,~., " DEVELOPMDT DEPh.uu.a.l STAFF IlEPORT "'- ------------- CvDress Mobile Home Park Comnanv Deacri>>tion Cypress Inn Mobile Home Park is a licensed seventy-two (72) space mobile home park providing low/moderate income housing. The business is a sole proprietorship of Mr. Bill Farmer. Mr. Farmer had previously owned and operated the park at a profit for six (6) years from 1979 to 1985, and currently owns twelve (12) other rental properties. Mr. Farmer had recently reacquired the title to the park property on October 10, 1990 as the result of a foreclosure and trustee sale. The last five years prior to October 1990 have seen the condition of the park deteriorate substantially and the occupancy rate drop to its ,lowest level of thirty percent (30%). - To reverse these trends and return the park to a viable businesss and a pleasant living environment, Mr. Farmer has initiated an aggressive rehabilitation project and placed an employee on the property to oversee the day-to-day managerial responsibilities. The project is estimated at a final cost of one-hundred, forty thousand ($140,000). To date, forty thousand dollars ($40,000) has been invested into the project, and there have been significant gains in correcting,the most pressing concerns. Mr. Farmer is now ready to proceed with the next phase of the project to include, but not be limited to, street resurfacing, installation of new lights and breaker systems, building repairs, installation of perimeter fencing and landscaping. "'- Amount .nd Punose of Loan Cypress Inn Mobile Home Park is requesting a loan in the amount of $50,000.00 to provide funds for the completion of rehabilitation activities related to this project. Rate and Term of Loan The loan in the amount of $50,000.00 will be amortized over a period of eight (8) years at an interest rate of nine percent (9%). Annual payments of $8,790.12 include interest and principal amounts. Collateral The loan will be collateralized by the business's real estate property currently valued at $1,075,000, less mortgage liens of $115,803.40 leaving an owner's equity of $955,196.60. ------------------ "'- KJH:NN:tnt:0088F COMMISSION AGERDA Meeting Date: 08/05/91 DBUSLOPMBPT DSPABTMBIf! ~"'1(iFF BSPOET CYPHBSS MOBILB HOME P July 30, 1991 Page -2- O -_---- ---°------------------ Job Creatim To facilitate a aucesaful completion of the rehabilitation project, four <4) full-time positions were created sad are depmdaat upon the project's ongoing and successful end results. Some of the more specialized work is subcontracted out to local contractors, thereby indirectly providing for construction-related Sobs. RBcommmdatioa The &conomic Development Program Committee (EDPC) has reviewed sad evaluated this request for financial assistance. The Committee has takm an action recommmding approval of this loan application to We Mayor and Common Council. Staff recommends adoption of the attached Resolution. W ~ NTH J. Oif, $ecntive Director Developmmt Departmmt ® KJH:HH:tnt:0088F COMMISSION A66IIDA Meeting Date: 08/05/91 © 4 1 YssOL0TI0a BOIBBY 2 YESOLOTIOH OF TBB MAYOY AMD CO!!!OH CODIICII. OF TBB CITY OF SAM g BBYMAYDIMO AOTflOYIZIIF6 AMD DI~CTIMG TBB B7[BCOTIOlf OF A SMALL BDSIi1BSS LOAM A6Yffi~11T BETWSSM T~ CITY OF SAIf BBffiAYDI1f0 APD CYPY888 MOBILBHOMB PAIIR. 4 BB I2 YBSOLVSD BY T88 MAYOY ABD COMMON COO1fCIL OF TBB CTlY OF SAF 5 BBYAAIIDIAO AS FOLLOWS: 6 sgcrloM 1. 7 The Mayor of the City of San Beraardiao 1s hereby authorized to 8 execute, on behalf of the City of Saa Bernardino, a loan agreement with 9 CYPBSSS MOBILSHOlf6 PARR, which loan agreement is attached hereto as Ezhibit 10 "1" and is incorporated herein by reference as though fully set forth at 11 length. The Agreement provides for the loaaiag of fvads from the Small 12 Business Loaa program is the amount of 550.000.00. 1~ SBCTIOA 2. O 14 The authorizations to execute the above referenced Agreement are 15 rescinded if the parties to the agreement fail to execute same within sixty 16 (60) days of the passage of this 8eaolutioa. 17 //// 18 //// 19 //// ~ //// 21 //// ~ //// ~ //// 24 //// ~ //// 26 //// 27 lab:00638 ~ 08/OS/I991 BESOLDTIOF AU?H IFG MAYOB TO ERBCOTE A SMALL ~RBSS LOAF AGBEBMeR! WITH BESS MOBILffiOMB PABK. .Z I HHBEBY CEBTIFY that the foregoing resolution was duly adopted by ® 1 ~ the Mayor aad Common Council of the City of San Bernardiao at a eaular 4 meeting thereof, held on the fifth day of Axgy~, 1991, by the following vote 5 to wit: 6 ,~ COUFCIL MO~IDEBS HAY$$ ~aSIQIII d 8 ESTBADA - 9 BEILLY - 10 HEBFAFDE2 - - - - 11 MAtmsLEY - - - - 12 MIFOB - - - - 1~ POPE-LIIDLAM - 14 MILLEB - - - - 15 16 City Clerk 17 The foregoing Beaolutioa is hereby approved this day of August, 18 1991. 19 20 W.B. HOLCOMB, Mayor City of Ssn Beraardlao 21 Approved as to form and legal content: ~ JAMES F. PEAMAF, ,~ City Attorney f; `ls 27 lab:0063E ~ 08/05/1991 © EZHIBIS ^1^ O ' ~ CITY OF SAN SERNARDINO COIU+lIINITY DEVELOPMENT DEPARTMENT ~~Eaonomia Dsv~lopmsnt Program^ (iDE-8inana~a) gORRO~R; Cypress Inn Mobile Nome Park PROJECT TSTLE: Partial Funding of Refurbishment Park Area PROJECT ADDRESS: 2057 North Mount Vernon San Bernardino, California 92411 ® IRAN IS NUMBER OF COMMUNITY DEVEIAPMENT . DEPARTMENT CONTRACTS. ItJH/lab/0256 ©-- -- ® -- TABLE of ~QgT?~ffiT~ (iD8-Finanoed) Section Titl• pace BECTION I FARTISB, TERMB, COIQDZTIOEB PRECEDENT AND IDIDEPEEDEIIT STATQB 5101. Partiss to the Agreement 2 5102. Representatives of the Parties and 2 service of Notices 5103. Term of this Agreement 3 5104. Conditions Precedent 3 5105. Independent Contractor Status o! 3 the Borrower sscTiox II rnsFOas of AaEaaMSET AED LoAx, LOAN - ® TEEMS, AND PRO1[IBSORY )TOTE i 5201. Purpose of the Agreement 4 M 5202. Purpose o! the Loan 4 5203. Terms of the Loan 4 5204. Promissory Note 5 88CTION III REPRSSENTATIONB AND COVEIi7111T8 O! SORRO11sR, AND DEFAIILT 5301. Representations of the Borrower 6 5302. Covenants of the Borrower 7 5303. Default 9 SECTION 3:V REPORTS, EECORDB AND AIIDITS 5401. Reporting Requirements 10 5402. Maintenance of Records 11 5403. Audits and Inspections 11 5404. Validity of Financial Documentation 12 Submissions i ..., TABLB OF CONTENTS (Coat...) (IDB-Finessed Agreement) eeation ~IS)m~lE Titl• S405. Release of Funds from Escrow 12 5406. Reconveyance Fee 12 SECTION O GENERAL TEENS AND CONDITIONS 5501. Indemnification and Insurnnce 12 Requirements 5502. Prohibition Against Assignment 14 5503. Limitation of Corporate Acts 14 8504. Amendments and Waivers 14 5505. Compliance with Statutes and 14 Regulations 5506. Conllict of Interest 15 ~ ~ 8507. Political Activity Prohibited 16 5506. Lobbying Prohibited 16 SS09. Installation of Financial Assistance 17 Sign 5510. Press Releases 17 5511. Discrimination Prohibited 17 5512. Nondiscrimination, Equal Employment 17 Practices, and Affirmative Action Plan 5513. Employment Opportunities for Business 17 and Lower Income Persons s514. Participation of Minorities, Women and 19 Small Businesses 5515. Captions 19 S516. Effect of Legal Judgment 19 5517. Choice of Law Governing this Agreement 19 ii © O TAELE of CONTENTS (Coatinued...) ® (iDH-Financed Agreement) Section HIiID~lA ! Paoe 5518. Prohibition of Legal Proceedings 19 8519. Rights and Remedies i9 BECTI0~i VI EIiTIRE AGREE1dN'P 5601. Complete Agreement 19 5602. Number of Pagss and Attachments 20 Execution (signature) Page 21 IITTACffi~ETB Attachment I -- Employment Action Plan Attachment II -- Insurance Requirements RJH/lab/0257 I iii AGREEMENT NUl[BBR (iaB-ainanaa~- BETWEEN THE CITY OF SAN BERNARDINO AND THE Cypress inn Mobile Home Park (RELATING TO) THE Partial funding for refurbishment of park area --- --- N N N-- THIS AGREEMENT is made and entered into by and between the City of San Bernardino, a municipal corporation, harainafter call "City", and Cypress Inn Mobile Home Park hereinafter ca a the "Borrower". ~ EiTffiHHHHTH WHEREAS, the City has entered into a Grant Agraemant with the United States Department of Housing and Urban Development, ~hlreinalter called the Grantor, pursuant to Title I o! the Housing and Community Development Act of 1974, as amended, hsr~inafter referred to as HCDA, to address the community davelopmant needs of the City; and WF~REAS, the Community Davslopmam Department, hereinafter called the "CDD", has bean designated by the City to provide for proper planning, coordination and administration of the City~s pro- grams as described in the City~s Grant Agreement with the Grantor, and of certain projects tended by the City= and WHEREAS, the CDD cooperates with private individuals and organizations, other agencies o! the City and agencies of other governmental jurisdictions in carrying out certain functions and programs which era its rasponsibilityt and WFIEREAS, the 8ma11 Business Revolving Loan Fund program has been established by the City as part of a City of San Bernardino Economic Development Program ("EDP"), and has been approved by the San Bernardino Mayor and Common Council; and WHEREAS, the project which is the subject of this agreement meets the requirements o! the above described program; and WHEREAS, Borrower has applied to the City for a loan to help finance the project; and WHEREAS, the Cfty 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: 81QALL BIIBINE88 LOAN a.+REENEBiT IDB-Fiaanaed QPage 2 SECTION I. n~emrea_ nn!ev_ r.n~antTrexe DAIE@EDEMT. ~1~ INDEPENDENT BTl\TQS 8101. Parties to the Agreement. The parties to this Agreement are: 1) The City of San Bernardino, a municipal corporation, having its principal o!lica at 300 North "D" Street, San Bernardino, California 92418. 2) Th6 BOrrowar, C resa Inn Mobile Home Park , having its princ pa address at ort ount ernoa San Bernardino. California 92411 The Borrower is ( A ) Sole Pro rietor (fictitious name enterpr ss, n v ual, Ca forn a Corporation/general partnership/limited partnership.) B102. Representatives of the Paztias and eervige of Notioes. The representatives of the respective parties who are ® authorized to administer this Agreement and to whom formal notices, damanda and communications shall be given are as follows: 1) The representative of the City shall be, unless other- wise stated in the Agreement: ltr. ltsaaeth J. Seadersoa, Direotor Commuaitp Developmeat Departmeat 300 North „D~~ etreet, fifth Bioor Ban Sernardiao, CA !2418-0001 2) The representative of the Borrower shall be: Mr. William Farmer, Owner 3) Formal notices, demands and communications to be given hereunder by either party shall bs made in writing and may bs effected by personal delivery or by registered or certified mail, postage prepaid, return receipt r~ques- ted an8 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 bs given, in accord with this section, within five (5) working days of said change. ,._...~ © -- 0 ' BxALL BosxNase LOAN L..REENEIIT iDB-linaaaed Page -3- 8103. Term e! this Aarsemsnt. This Agreement shall remain in full force and affect 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 5303 herein. 610. Conditions Precedent. A. Prior to the execution of this Agreement, the Borrower shall submit to the City !or approval in writing an Affirmative Action Program Plan in accordance with section 512 herein. B. In the event that Borrower is a corporation, then prior to the execution of this Agreement, the Borrower shall provide . the City with copies of the following documents: i) Borrower's Articles of Incorporation, and all amendments thereto, as Tiled with the Secretary of State. 2) Borrower's By-Laws, and all amendments thereto, as adop- ted by the Borrower and properly attested. O ~ 3) Resolutions or other corporate actions of the Borrower's Board of Directors, properly attested or certified, which specify the name(s) of the parson(s) authorized to obligate the Borrower and execute contractual documents. 4) Certificate of Good Standing from California Secretary of State. C. Zn the event that Borrower is a partnership, than 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 tiling thereof with appropriate filing official. D. In the event the Borrower is an individual doing business under fictitious name, a copy of the Fictitious Name State- ment and evidence of the proper filing thereof. 8105. Indenendsnt Contraoter states o! the Borrower. The parties agree that the Borrower is an independent con- tractor and that no employees of the Borrower have been, are, or shall be employees of the City by virtue of this Agreement, and the Borrower shall co inform each employee organization and each employee who is hired or retained by ® it. u 81aALL EoslxESS LOAN LvREEMENT IDH-Finaaaad QPaga -4- SECTION II. PIIRPOBE O1r h6RElL1Ra1aT B_uD L~Am L~A!s TSR_V~ h~ PROM?BSORY 210TE 8201. Puroesa of the Aeraamant. Tha purpose o! this Agreement is to provide - - -- -------- DOLLARS ( 50,000.00 ) of EDP ands to be oana by the C ty to the Borrower, hareinaltar called ttsa "Loan", for the purpose and under the terms and conditions set forth herein. 8202. Puroosa of the Loan. The purpose of tlse Loan is to provide financial assistance . to enable the Borrower to: 1. Refurbish the area by street resurfacing; installation of new lights and breaker systems; building rehab; installation of perimeter fencing; and landscaping. 8203. Terms of the Loan. A. The City agrees to land the Borrower, and the Borrower agrees to borrow lrom the City, an amount not to exceed Fift Thousand and 00/100 --------°---"° DOLLARS, ($ 50,000.00 )r such transact on are na tar referre to as the "Loan". The Loan is to be evidenced by, and made against delivery of a Promissory Note executed by the Borrower, hareinatter called the "Note" and by this reference incorporated herein. B. The Note shall (i) be dated as of the closing, (fi~ bear interest on the unpaid principal at the rate o! N ne Percent Q ( 9Z ) per annum, (iii) be for a term Of Eight ( 8 ) years, and (d).provida !or payment of a pr nc pal amount thereof and the interest thereon in Ninety Sia . _ __-. --._.. . C SMALL BIISI2TE88 1A71N I?.~REEMENT IDB-8iaaaaad ~aqa -s- ( 96) aqua], monthly installID~nts of Seven Hundred Thirty Two and 51/100 ------ -- DOLLARS ( ), each nc u ng pr nc pa an terest, and continuing until said principal and interest are paid in full. C. Each monthly instalment shall bs applied first to the payment o! interest than accrued to the data the payment is received, and the balance, i! any, to the reduction of the principal. 8204. 4romiasorv 11ota. A. The obligation of the City to make the Loan is subject to receipt by the City of ttsa Note and, at the City's sole discretion, to the following additional conditions prace- dent: 1) Tha representations and warranties made herein by the Borrower shall ba true and correct at the time of consideration by the Mayor and Common Council of the City of San Bernardino with the same a!lact 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 loan and substance to the City. 3) If matching funds constitute a part of this Agreement, than Borrower shall obtain matching lands in an amount equal to the amount o! this loan and, as required by the City, deposit said matching funds into an account with Nin ~ 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 relerenca is incorporated herein. B. The Note is to be secured as follows: Real estate property currently valued at One Million Seventy Five Thousand ($1,075,000) Dollars. C. Borrower shall hays the right, without penalty, to prepay the Note together with the accrued interest thereon as of the date of such prepayment. © 0 BNALL BU8IN88B LOAN LoR88lDSNT IDB-Finaaoed ®Page -6- D. The Borrower acknowledges and agrees that the amount being provided under this loan shall be for a total of - - ----------------- DOLLARS, ( 50 000.00). an at no add t oval lands to cover addi- tional projects costs, anticipated or unanticipated, incur- red as a result o! cost overruns or expenses in financing this project, era available under this Agreement. sacTloN III. e*PR?8lliTATI0N8 ]~mD C0VENAlITB O! BORR01fER. f119D DE!'AQLT 6301. Reerasaatations e! the Borrower. To induce City to enter into this Agreement, Borrower cove- . Hants and represents to City that: 1) The execution, delivery and performance or the Note and this Agreement by Borrower have bean duly authorized by Borrower. This Agreement constitutes a legal, valid and bindlnq obligation o! Borrower, enforceable in accord- ance with its terms. The execution and delivery o! this- Agresnant and the note, and consummation of the transac- tions herein contemplated, will not conflict with, or r®ault in a broach ot, any o! the terms, provisions or conditions of any indenture, contract, instrument or agreement, including any partnership agreement, to which Borrower or any o! its officers is a party. No appro- val, consent or authorization o! any governmental authority is necessary for the execution, delivery or performance by the Borrower of this Agreement or o! any o! the terms and conditions. 2) Borrower has good and marketable title to the real pro- perty identified in 82048 0! this Agreement, located at 2057 North Mount Vernon, San Bernardino cA 92411 , San Berner no, Ca forn a, and t s free an c ear from all liens except as set forth herein: One Hundred Fifteen Thousand Bight Hundred Three an ($115,803.40 in com fined mortgages a ec ng proper y 3) Borrower is in compliance with all applicable statutes, laws, regulations, and executive orders o! the United States of America and all states, foreign countries, other governmental bodies and agencies having jurisdic- tion over its business or properties, including (without limitation) all tax laws and Borrower has not received notice of any violation of such statutes, laws, regula- tions or orders which have not been remedied prior to the date of this Agreement. Borrower possesses all licenses, tradenames, trademarks, and permits as are required for conduct of its business without conflict with the rights of others. BMALL SIIBINE86 LOAN AAREEKENT iDB-1'iaaaoad ©Pags -7- .D. There is not pending or threatened against Borrower, or any of its officers, any actions, suits, proceedings or investi- gations at law or in equity or balore or by any federal, state, municipal or grnrarnmantal department, commission, board, bureau, agency or instrumentality which, if deter- mined adversely, would bs likely to have a materially ad- verse effect on the business or properties of Borrower. E. Each and every financial statement, document and record delivered by Borrower to the City in connection with this Agreement and the proposed transaction hereunder is a true and complete copy of said financial statement, document or record, and fairly and accurately reflects the information it purports to portray. There has bean no change in the condition, financial or otherwise, of Borrower as shown in the linancial statements dated December 27 1990 , except changes in the ordinary course o us Hess, none of which, individually or in the aggregate, has been materially adverse. 8102. 7ldditional Covaaante of the Sorrowar. Q Borrower covenants and egress 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 o! this Agreement or the Nots. 3) Execute and deliver all instruments, and perform such acts, as the City may reasonably deem necessary or de- sireable to confirm and secure to the City all rights and remedies conferred upon the City by the terms of this Agreement and Nots. 4) In the event that Borrower shall grant the City a se- curity interest in Real Property as collateral under 5204 (B) herein, then Borrower agrees to maintain at Borrower's Bola expanse a policy of title insurance coverage equal to the amount of the loan. 5) Give notice to the City of any avant that constitutes an Event of Default as set forth in Section 303 of this p Agreement or that would, with notice, or lapse of time or both, constitute an Event of Default under this Agreement. Notice shall specify the nature of such Event of Default. SMALL BUSINESS LOAN ~wZtESl~liT IDB-Finanaad Page -8- 6) Not enter into any agreement or other commitment the performance of which would constitute a braaah o! 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) Obasrva all applicable federal, state and local statutes and regulations as well as City o! San Bernardino Ordi- nances as further defined and sat forth in Section 505 of this Agreement. 9) In the avant that Borrower is a corporation, than Bor- rower shall do or cause to be done all things necessary to preserve and keep in full force and effect its corpo- rate existence, rights and franchises. 10) Not violate any laws, ordinances, governmental rulaa or regulations to which it is subject and not fail to ob- tain any licenses, permits, franchises or other govern- mental authorization necessary to conduct its businssa, which vioiation or failure to obtain might have a mate- _ rial adverse e!lact on the business, prospects, profits or condition (financial or othsraisa) of Borrower. + 11) Submit an Annual Employment Report on or before the fif- teenth (15th) day of Juna !or the year(s) The Annual Employment Report shal de- tail Bo~rows~s complisncs with the 8lsploymant Action Plan, Attachment I attached hereto and by this ralarence incorporated herein, !or 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 businesst in addition, said insurance cover- ages(a) shall be in accordance with the general insur- ance provisions of this Agreement as specified in 5501(8)(5), including fire, hazard and general compre- hensive liability insurance, worker's compensation, con- struction/rehabilitation liability, to protect such bus mess 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 nonrenawal without thirty (30) days prior written notification to the City Attor- ney by certified mail. ' BMALI. BII8iN888 LOAN i..~aaMaaT iDB-Fiaanaed Page -9- 13) Pay all indebtsnass and obligations promptly in accord- ance with noraal terms and promptly pay and discharge or cause to paid and discharged all taxes, assassmarts and govarnmantal charges or levies imposed upon it or upon its income and profits or upon any of its property, real, personal or mixed, or upon any part thereof, re- spectivaly, before the same shall become in detault. 8303. Default. A. The entire unpaid principal of the Note, and interest then accrued thereon, shall become and be forthwith dus and pay- able upon written demand by the City or the City's assigns, _ without any other notice or demand of any kind or an]? pre- sentment or protest, i! any one of the following events (herein called an "Event of Default") shall occur and be continuing at the timo o! 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 o! any court of any order, rule or regulation or any governmental body, provided however that such sum shall not ba payable i! _ ® Borrower's payments hays barn expressly extended by the City or the City's assigns. "Events of Default" shall include: 1) Payment of any installment o! principal or intazeat on the Note is not paid wham due and such payment remains unpaid for thirty (30) days. 2) Borrower !ails to pay when due, or declared dus, the obligations secured under this Agreement. 3) Borrower fails to perform or comply with any terms, conditions, or covenants as provided in this Agreement or in any instruments securing or related to this Agree- ment. 4) If any representation or warranty made by the Borrower in this Agreement shall prove to be untrue in any mate- riai respect, or if any report, financial statement or financial schedule or other instrument delivered under or pursuant to this Agreement or the transactions con- templated herein, to the City or to any other holder of the Note shall prove to bs untrue in any material re- spect as of the data as of which made. 5) A court enters a decree or order for relief in respect of the Borrower in an involuntary case under any appli- ® cable bankruptcy, insolvency or other similar law now or hereafter in effect, or appoints a receiver, liquidator, assignee, custodian, trustee, ssquestrator (or similar official) of the Borrower or for any substantial part of SMALL BUSINE88 LOAN ~._1~EMENT IDS-Fiaaaaed Page -10- ® its property, or orders the winding up or liquidation of its alfaira and such decree or order remains unstaysd and in elfect !or a period o! 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 aature, or making a general assignment !or the benelit oP, or entering into any composition.or arrangement with credi- torsf (ii) o! procesdinga for the appointment of a re- ceiver, trustee or liquidator o! Debtor, or o! a sub- stantial part oP its asaeta, being authorized or insti- tuted by or against its or (iii) of proceedings under any bankruptcy, reorganization, readjustment of debt, inaolvsncy, dissolution, liquidation or other similar law of any jurisdiction being authorized or instituted _ by or against the Borrower. 7) A cessation or substantiai reduction o! operations in the business which is the subject of this Agreement under circumstances indicative to the City o! a lack of intention or ability to provide continuing employment and economic hematite !or the area in which the business ® is located. + S) Failure to submit the Annual Employment Report referred to in 5302(12) within minty (90) days of the scheduled due date for said Report. 9. The loss, theft, substantial damage, destruction, aban- donment, sale or encumbrance to or o! any of the colla- teral securing payment of the Note, in any manner not Tully covered by insurance, or the making of any levy, seizure or attachment thereof or thereon. B. I! 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 oP 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 sxpansea incurred by such holder, in its eftorts to protect its collateral, secure payment, or otherwise defend its interests hereunder in any judicial or administrative proceeding. 88CTI0N IV. REP0RT8. RECORDS ]11QD l1DDIT8 /~~~01. Renortina Reauiremants. ~i A. At such times and fn such forms as the City may require, there shall be furnished to the City such statements, ,: r.~r~i BMALL BIIBIlIL"BB LOAM ~wdREEMENT . - ZDB-Fiaanaed ®Page -li- records, reports, data and information as the City may request pertaining to matters covered by this Agreement. B. Borrower will provide its financial and accounting state- ments to the City for the period ending December 31, 1991 and annually thereafter during tern o! th s Agreement, but not later than three (3) months following the expiration of any such period, and at each other time and in such torn as the City may prescribe. 6402. Maintenance of Reoerds. A. Records, in their original form, shall be maintained in accordance with the requirements prescribed by the Grantor and the City with respacE to all matters covered by this Agreement. Such records shall be retained !or a period of six (6) years alter termination of this Agreement and attar = all other pending matters are closed. "Pending Matters" in- clude, but are not limited to, an audit, litigation, or other actions involving records. The City may, at its dis- cretion, take possession of and retain said records. B. Records in their original form pertaining to matters covered- ® by this Agreement shall at all times be retained within the city of San Bernardino, or some other location specifically authorising in writing by the Director of Community Develop- ment, unless authorization to remove them is granted in writing by the City. 603. 7?udits and insceatiens. A. At any time during normal business hours and as often as the Grantor, the U.B. Comptroller General, Auditor General o! the State o! 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 Gansral 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 sxtinguish4rs, sprinkler system, etc., to safeguard property and/or equipment funded or aecu- red by this Agreement. Notwithstanding such inspection Q authority, Borrower is coley responsible-for the provision of security and for the safe quarding~ot the business and its property. W ' © O SNALL SIIBINE88 LOAN awREEMENT IDB-liaanaad ® lags -12- 8404. vas{d+tv et linanoiai Dooumsntatien submissions. Financial reports required to bs prepared and submitted by the Borrower to the City shall be accurate and correct in all raapects. 8405. 4~~aasa of loads from Zsarow. A. All loan proceeds shall bs deposited into an escrow account with an escrow company designated by the City. Disbursement of lands shall be jointly authorized by the Borrower and the City. Each disbursement shall be in accordance with 5202 "Purpose of the Loan" and shall be properly supported by invoices, vouchers, executed payrolls, time records or other documentation evidencing an expenditure and/or encumbrance of lands. B. The costa 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. ® 8406. Rsaoatravanaa lss ' In the event that real property is used to secure this Loan, then Borrower egress to pay any costs incident to title re- convayance, including, i! applicable, trustee's tees, attor- ney fees, document preparation lees, recording fees or any other related expanses. sacT=oN v. GENERAL TER1[8 AND CONDITIONs 8501. *adsmnifiaat+on and *_aseranos Rsauirsmsats. A. Indemnification: The Borrower undertakes and agrees to dalend, indamnily and hold harmless the City and any and all o! the City's offi- cers, agents, employees, assigns, and successors in interest from and against all suits and causes o! action, claims, cost of litigation, 8amage or liability of any nature what- soever, for death or injury to any person, including Bor- rower's employees and agents, or damage or destruction to any property of either party hereto or third persons in any manner arising by reason of or incident to the performance of this Agreement on the part of the Borrower or subborrower © any tier whether or not contributed to by any act or ommis- sion, active or passive, negligent or otherwise, except for the sole negligence of the City, or the sole negligence of any of the City's officers, agents or employees. City ap- -- - © O SHALL BIISZNEBB LOAN ~~.,,aEE~NT -' IDB-aiaanosd Page -1l- proval of the Borrower's performance, or failure to object, shall be no defense to Borrower concerning its undertaking herein to defend and indemnify City and others. B. insurance: 1) The Borrower shall provide and maintain at its own ex- pense throughout the term of this Agreement the insur- ance requirements specified herein. Evidence o! insur- ance shall be submitted for approval by the City. The City special endorsement forms, referenced hereto and incorporated by reference, are the preferred form of evidence of insurance. Alternatively, Borrower may submit two (2) certified copies of the full policy con- taining the appropriate cancellation notice language and additional insured/loss payee language as specified. 2) No release o! funds from the Escrow Account shall bs 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, atat- ing that the Borrower is so insured, must accompany any demand for lands unless said form has been previously submitted and approved by the City. (Certification of insurance shall ba procured, filed and approved in strict compliance with City rules and regulations.) 3) With respect to the interests o! the City, such insur- ance shall not be cancelled, reduced in coverage or limited or non-ransw~d, except alter thirty (30) days written notice by r~csipted delivery has been given to the Office of the City Attorney, City Aall, 300 North "D" Street, San Bernardino, CA 92418-0001. Policies of insurance and fidelity bonds, except for policies cover- ing Worker's Compensation and Employees' and volunteer's Owned and/or Leased Vehicles, shall name the City as an Additional Insured and said endorsements or other evi- dence of insurance shall so indicate. Fidelity bonds shall name the City as loss payee or additional insured. In the event o! any cancellation, non-renewal, reduction or limitation of coverage, or notice that such will be effected, City may, but is not reguirad to, obtain insu- rance to protect its interests, in which event the cost thereof shall be reimbursed by Borrower forthwith. Any failure to forthwith reimburse such expense shall con- stitute an Event of Default. ® 4) The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required hereunder by giving Borrower minty (90) days written notice. ' SMALL BIISIl1888 L011D1 w..R8EM8NT - iDB-liaanaed ®Page -14- 5. The Borrower shall maintain minimum insurance coverages prescribed in Attachment II of this Agreement, which by this reference is incorporated herein. 8502. Prohibitiea Acainst Assignment. A. The Borrower shall not assign this Agreement, nor assign or transfer any interest or obligation in this Agreement (whe- ther by assignment or novation) without prior written con- sent of the City. No part of the property securing this Agreement shall be assigned or transferred (except sales of inventory in the ordinary course o! business), nor shall such property be pledged, without the prior written consent o! City. B. The Borrower shall not enter into any agreement with any other party under which such other party shall became the recipient of claims due or to become due to the Borrower from the City without prior written consent of the City. 8503. Limitation et Coroorate Aata. ® in the event that Borrower is a corporation than the Hor- rower shall not amend its Articles of incorporation or By- Laws, move to dissoive, transfer any assets derived from funds provided under this Agreement, or take any other steps which may materially affect its operations within the per- lormance o! this Agreement without first notifying the City in writing. The Borrower shall notify the City immediately in writing of any change in the Borrower's corporate name. 8504. ~endmenta and waivers. This Agreement may not be changed or amended orally, and no waiver hereunder nay 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. 8505. COmDiianee with statutes and Rewiations. A. The Borrower warrants and certifies that in the performance of this Agreement, it shall comply with all applicable staa- tutes, rules, regulations and orders of the United States, the State o! California, the County and City of San Sarnar- dino, including laws and regulations pertaining to labor, wages, hours and other conditions of employment and the City~a anti-discrimination provisions and Affirmative Action ~'+,, Plan which by this reference fs incorporated herein. Bor- ~y,,,/ rower further warrants and certifies that it shall comply with new, amended, or revised laws, regulations, and/or procedures that apply to the performance of this Agreement, upon being provided notice thereof. ' SMALL BII8IN888 LOAN I © EI~SliT iDB-Fiaanaed Page -15- Borrower covenants that the Davis-Bacon Act as amended, the Contract Work Hours and Safety Standards Act, and the Cope- land "Anti-Kickback Act" shall be a part of all construction contracts awarded by the Borrower pursuant to this Agreement and all subcontracts thereto. BS06. Conflict of interest.. A. The Borrower covenants that none oL.its directors, o!licers, employees, or agents shall participate in selecting subcon- tractors, or administering subcontracts supported (in whose or in part) by federal funds where such person is a direc- tor, officer, employee or agent o! the subcontractor, or where such person knows•or should have known that: 1) A member o! such person's immediate family, or partner, or organisation has a financial interest in the subcon- tracts 2) The subcontractor is someone with whom such person has negotiated or is negotiating any prospective employment, or; ® 3) The participation o! such persons would be prohibited by the ~'!~ ~ *ornia Political Reform Act, California Govern- ' mart Code Section 87100 et seq., i! such person were a public officer, because such person would have a "finan- cial or other interest" in the subcontract. B. Definitions: 1) The term "immediate family" includes, but is not limited to, those persons related by blood or marriage, such as husband, wife, father, mother, brother, sister, son, daughter, lather-in-law, motherin-law, brother-in-law, son-in-law and daughter-in-saw. 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 fas, a share o! the proceeds, prospect of a promotion or future employment, a profit, or any other form of financial reward. (b) Any of the following intsrists in the subcontracting entity: partnership interest or other beneficial interest of live percent (5t) or more of the stock; ® employment in a managerial capacity; or membership on the board of directors or governing body. This provicion shall not apply to serving on the board or governing body o! a non-profit corporation for which no salary is paid or other compensation. ~ Q sNALL BIIS2NaB8 LOAN ....aa~NT ZDB-Financed ®Fage -16- C. The Borrower further covenants that no officer, director, employee or agent shall solicit or accept gratuities, !a- vors, or anything o! monetary value, from an actual or po- tential subcontractor, suppllar, a party to a subagrasment, (or parsons who are otherwise in a position to benefit from the actions of any officer, employee or agent). D. The Borrarar shall not subcontract with a lormar director, officer, or employee within a one (1) year period following . the termination of the relationship between said parson 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 o! its officers, directors or employees o! their im- mediate family with the proposed subcontractor and its olfi- -~ cers, directors or employees. F. For further clarification oP the meaning of any o! the terms used herein, the parties agree that references shall ba made to the guidelines, rules and laws of the City of San Harnar- dino, State of Calitornia, and federal regulations regarding- , ~ conflict of interest. G. The Borrower warrants that it has not paid or given and will not pay or give to any third person any money or other con- sideration for obtaining this Agreement. H. The Bo ow ov is o o ea o! rr arc enan that no member, lficer, ampl y 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 !or one (1) year thereafter. I. The Borrower shall incorporate the foregoing subsections o! this section into every agreement that it enters into in connection with this project and shall substitute the term "Subcontractor" for the term "Borrower" and "Sub-contractor" for "Subcontractor". 8507. Political 1?otivity Prohibited. None of the funds, materials, property or services provided directly or indirectly under this Agreement shall ba used For any partisan political activity, or to further the elec- tion or defeat of any candidate for public office. ~?BSOB. Lobbvina Prohibited. (i?1 None of the lands provided under this Agreement shall be used for any purpose designed to support or defeat any pend- ing legislation or administrative regulation. Q BMALL SIIBINE88 LOAN a..rRE!![8NT ' IDB-Finaaaed ®Paga -17- 8509. *asta~~atiba of Finaaaiai 7?ssistana~ Pion. 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 lrom the City,•if such a sign is ra- quasted by the Director o! Community D~relo~mant Department. BSi0. Fres¦ Releases. In all communications with the p=sea, television, radio or any other means of communicating with the general community, the Borrower shall make specilic reference to~tha City o! San Bernardino Community Development Department as the spon- soring agency of the project. ' BS11. Disariminalien Prohibited. No parson shall on the grounds of race, religion, ancestry, color, national origin, sex, age, or physical handicap, be excluded from participation in, be denied the benefit of, or be subjected to discrimination under this program/project. - ® For purposes of this Section, Titl• 24, Coda of Federal Re- gulations Section 570.601 (b) defines specific discriminatory actions which are prohibited and correction action which shall be taken in situations as defined therein. BS12. Nondiscrimination. EaLal Emoiovment Praatiaes and 7?flirma- tiva l?ation Prearam. The Borrower shall comply with the nondiscrimination and aflirmative action provisions o! the laws of the United States of America, the State o! California, and the City. In performing this Agreement, the Borrower shall not discri- minate in Its employment practices against any employee, oz applicant for employment because o! parson's race, religion, ancestry, color, national origin,~sex, age or physical handicap. Any subcontract entered into by the Borrower re- lating to this Agreement, to ttsa extant allowed hereunder, shall be subject to the provisions of this paragraph. SS13. Emolovment oooortunities for Business and Lower inoome Parsons. 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:) Q 1) The work to be performed under this contract (Agreement) is on a project assisted under a program providing di- rect Federal financing assistance from the Department of Housing and Urban Development and is subject to the re- quirements of Section 3 of the Housing and Urban Deve- BNALL BOSINE88 LOAN AGREENEIIT ' ~ ~ SMALL BDBIN888 IRAN ~.-.Zt8EM8tiT IDS-Biaanaad Page -16- ® lopment Act of 1968, as amended, 12 USC 1701u. Section 3 requires that, to the greatest extent feasible, oppor- tunities for training and employment be given to lower income residents of the project area and contracts (agreements) for work in connection with the project be awarded to busine:s concerns which are located in, or owned in substantial part by persons residing in the area of the project. 2) The parties to this contract (Agreement) will comply with the provisions of said Section 3 and the regula- tions issued pursuant thereto by the Secretary of Hous- ing and Urban Development set lorth in Title 24 CFR, Part 135, and all applicable rules and orders o! 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 rapreaentativs o! workers with which he/she has a collective bargaining agreement or other contract or understanding, it any, a notiaa advising the said labor organization or worker's representative of its Q commitments under this Section 3 clause and shall post copies o! the notice in conspicuous places available to employees and applicants Por 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 !or or recipient o! Federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the sub- contractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR, Part 135. The Borrower will not subcontract with any subcon- tractor where it has notice of knowledge that the latter has been found in violation of regulations under Title 24, CFR 135 and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. 5) Compliance with the provisions of Section 3, the regula- tions set forth in Title 24 CFR, Part 135, and all ap- plicable rules and order of the Department issued there- under prior to the execution of the contract (Agreement) shall be a condition of the tederal financial assistance provided to the project, binding upon the applicant or ® recipient for such assistance,. its successors, and as- signs. Failure to fulfill theca requirements shall subject the applicant or recipient, its contractors and subcontractors, its successors and assigns to those • M eMALL BIIBIDiE88 LO71lT w..R$ElSED1T -' IDB-Finanoed ®Pags -19- sanctions specilied by the grant or loan agreement or contract through which fed*ral.assfstance is provided, and to such sanctions as are specified by Title 24 CFR, Part 135. - BSia. Partiaination ei 141aorities. women and email Snsinesses. To the fullest extent possible in the administration of this Agreement, Borrower agrees to provide opportunities !or minorities, woman and small busit?sases to participate in procurements undsr,thia Agreement. BS15. eantiens. - The section headings appearing herein shall not be deemed to govern, limit, modily or in any way affect the scope, mean- ing or intent o! these conditions. 8516. Elfsat o! Legal Judgment. Should any covenant, condition or provision herein contained be held to be invalid by final judgment in any court o! com- petent jurisdiction, the invalidity o! such covenant, aondi- tion or provision shall not in any way affect any other co- venant, condition or provision herein contained. 8517. Choies o! Law Governing this ]?grsement. This Agreement shall be governed by and construed in accord- ance with the laws o! the State o! California. 8518. Prohibition of Legal Proosedings. The Borrower is prohibited lrom using Grant funds received under this Agreement, or lands realized as a result of this Agreement, for the purpose o! instituting legal proceedings against the City or its o!liciai representatives. 8519. Rights and Remedies. In the avant any party fails to perform, in whole or in part, any promise, covenant, or agreement herein, or should any representation made by it bs untrue, any aggrieved party may avail itsel! to all rights and remedies, at law or equity, in the courts of law. Bald rights and remedies are in addition to those provided !or herein. SECTION i/I. ,~ ~ 8601. ComDiats Agreement. This Agreement contains the full and complete Agreement bet- © O ' ~ ~ ear susiN$as LOAN '~...aas~samT ~' iD8-Fiaanaad ®Paga -20- wean the two parties. No verbal agreement or conversation with any olficar or employee o! either party shall effect or modify any o! the terms and conditions o! this Agreement. 860Y. w+~er e! pease a*_d 1?ttaahmaata. ' This Agreement is executed in three (3) duplicate originals, each of xhich is deemed to ba an original. This Agreement includes, Twenty-one 41 ~ pages grid wo ) attachments which const tote the ant re unders~andinq and agreement of the parties. //// //// //// //// //// //// //// //// //// //// - //// ~ ® %9/% //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ,.. Q O BIf71LL Bvszasee LOAw ~w.tRLBNSNT IDB-liataaad page -21- IN WITNESS WHEREOF, the City of San Bernardino and thee Borrower have caused this Agreement to be executed by their duly authorized representatives on this _ day of 19_ ATTEBTi CITY O! SAw BBR~?SDIlTO C ty Clerk w.A. D07,Cp~, ~aypg City of sea Saraardino (C03tPOR11TI01i) 8Y Corporate eras deat - ATTEBTi BY Corporate 8earetary Approved u to loss and lagai aontaatt (w taass) ~A1~E8 YE10fB1T city Atto/~rn~.ey ~~,+ BYs /~,~~' (,//~ RJH/lab/0683 , 4 Q ATTACB1~11'P s "ixrLOx~rr ACT=ox ~zAi~~ ioonomia Development Progsam Empiopmeat cation plan statement of Bosrow~r Borrower doss hereby stets that the lands resulting from the Loan Agreement entered into on behalf of the City o! San Bernardino (hereinafter "City") and Borrower shall be used solely for furthering the purpose of the Economic Development Program (EDP). The purpose of EDP assistance is to banetit the low and moderate income residents of the City of San Bernardino ® through the creation and/or retention o! jobs to said per- sons. Pursuant to the purpose of the EDP the Borrower agrees to comply with the following Employment Action Plan: Borrower understands and agrees that in order to deter- mine that said program purpose is being met, an Annual Employment Report shall be filed with the City. Borrower understands that failure to mast 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 o! the loan plus interest, being due upon written demand by the City, pursuant to Section 302 0! the Loan Agreement and this Statement. RJH/lab/0254 Economic Development Program ~ O Q A'P'1'ACBMEfA'P INBIIRA~TCE 1tEQIIIRE~B (Instructions !or completing, executing and submitting Evidence of insurance to the City of san Bernardino.) Insured: (Contra r, Leases, Perm ttse, Borrower, Etc. Agrsament/Rstsrsncs No. Date: A. IlTSIIRED 1. To expedite completion of the insurance rsquirsmsnts, please give your insurance agent or broker a copy o! the Insurance Requirements Shsst along with these instructions and en- dorsemsnt forms. 2. I! your agrssaent requires Workers' Compensation coverage and you have bean authorized by the Scats o! California to Self-insure Workers' Compensation, than a copy o! the csrtilicats tram the Stets consenting to sal!-insurance will_ mast the evidence raquiremsnts. 3. Ali questions relating to insurance should be directed to the parson or olfica responsible !or your contract, lease, permit, or other agreement. (Sss items 9 and 10 below.) B. Il18D~1~iCE AOE~IY' OA 83~O~ 1. Acceptable Evidence -- The appropriate City Spacial 8ndorse- ments era the prslarrsd form of svidsnas. Mo modifications to the torn are permitted. Alternatively, certified copies of the full policy containing additional insured and thirty (30) day cancellation notice lanquaga will be accepted subject to review by the City Attorney. Cartilicatss, 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 -- Mors than one (1) insurance policy may be required to comply with the insurance requirsmants. Endorsement forms appropriate to your inaursd's agreement, contract, lease or permit have bean 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. i INBIIRIWCB REQIIIRZ "!1. ® -O Attaahmaat II Continued... Page -II- 4. Underwriter -- The name and address o! the insurance company underwriting the coverage must be noted on the endorsement tore. In the case of syndicates or subscription policies, indicate lead underwriters or aanaging agent and attach a schaflule o! subscribers, including their percent participa- tion. 5. Document Reference -- Include ratarsnos to either the specific City agreement (bid, contract, lease, etc.) or indicate that all such agreements era covered. C. I~iBDR#1ACE R1lQIIIRE~'1'B 1. Coverage and Limits -- The coverages and limits !or 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 andoraament listing such scheduled locations, vehicles, etc., so covered. 2. Excess Insurance -- Endorsesants to exaass policies will bs required when primary insurance is insufficient to comply with the requirements. 3. Additional Pages -- I! there is insufficient space on the - ® reverse side of the tors to Hots pertinent inforsation, such as inclusions, exclusions or specific provisions, etc., attach separate sheets and note this on the endorsement loan. 4. Parson to Contact -- Completed andorsaaents, corraspondencs and questions relating to the required insurance era to be directed to the following zeprasantatives: 5. Technical Assistance -- Improperly c~platad endorsements will be returned to your insured !or correction. 6. Delay in submitting properly completed endorsement loans may delay your insurad's intended occupancy or operation. 7. Renawais -- For extensions or renewals of insurance policies which have the City's endorsement form(s) attached, wa will accept a renewal endorsement or a certificate (with an original signature) as evidence of continued coverage i! it includes the statement that the insurance protection afforded the City of San Bernardino has been renewed under the same terms and conditions as previously approved. 2 ' ~ INBII1t11NCE RZQIIIltE![E!1_© Attaahmeat Ii Contiaued... Page -3- E~ DATE AOREEffiEliT/REPERBECE MOlf88R Ths following coverages noted with an "%" are required with the Combined Single Limits {CSL) as noted on the right. IInless written exception is allowed by Risk Managment. All coverages east add the City as additional insured. Workar~a Compensation statutory Employers Liability S ioo.ooo ( ) Commercial General Liability Si.ooo.ooo ( ) Broad Form Property Damage ( ) Personal Injury ( ) Broad Form Liability Endorsement ( ) Firs Legal Liability ( ) Garagekaspsrs Legal Liability ( ) Owned Automobiles © ( ) Nonownsd Autamobiles ( )Hired Automobiles ( ) Automobile Liability (i! auto is used for ¢ this contract.) Prolsssional Liability (if applicable) Si.ooo.ooo Property Insurance got value of (Contents at loot or value) ( ) Extended Coverage ( ) vandalism and Malicious Mischief ( ) Business Interruption (90 days minimum) ¢ 11~$ costs plus payroll) ( )Crime (inside and outside) ¢ ( ) Sprinkler Leakage ( ) other 3 •INBOR7INCE REQOI1tE![E2i. l?ttaalfinent Ii Continnid... Page -4- inlan8 Marine: $ (total cost o! goods in transit at any one time) Comments: /lab 0255 4