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HomeMy WebLinkAboutR-2016-063 Microenterprise Businesses Assistance Agreement with Rural Community Development ResourcesA RESOLUTION RESOLUTION NO. R-2016-063 authorizing the City manager to execute an agreement with Rural Community Development Resources (RCDR) in the amount of Fifty Thousand Dollars ($50,000) in Community Development Block Grant funds to provide technical assistance to microenterprise businesses within the City of Yakima. WHEREAS, Rural Community Development Resources (RCDR) is a private, non- profit provider of technical assistance, training and financial assistance for small business, and WHEREAS, RCDR has requested Fifty Thousand dollars ($50,000) in Community Development Block Grant funding to provide technical assistance services to microenterprise businesses in the City of Yakima, and WHEREAS, the City is a recipient and is responsible for the administration of its annual allocation of Community development Block Grant (CDBG) funds made available through the United States Department of Housing and Urban Development (HUD) and authorized by Title I of the Housing and Community development Act of 1974, as amended, and WHEREAS, federal regulation governing the use of CDBG funds for economic development activities allow the City to use such funds to provide grants to assist private, for-profit businesses; and WHEREAS, the provision of technical assistance to businesses will provide substantial appropriate public benefits to the City, particularly by creating new businesses and jobs, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute a grant agreement with Rural Community Development Resources (RCDR), in the amount of Fifty Thousand dollars ($50,000) in Community Development Block Grant funds to provide technical assistance to microenterprise businesses within the City of Yakima A copy of the grant agreement is attached hereto. ADOPTED BY THE CITY COUNCIL this 3rd day May, 2016 ATTEST: '/viva G i rez, Mayo Sonya Cvar Tee, City Cle AGREEMENT BETWEEN THE CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES AND RURAL COMMUNITY DEVELOPMENT RESOURCES 1. Contracting Organization: Rural Community Development Resources (hereinafter "Contractor") 2. Address: 24 South 3rd Avenue, Yakima WA. 98902 3. Phone: (509) 453-5133 4. Contact Person: Luz Bazan Gutierrez, 5 Title of Service or Program being funded: Micro-enterprise/Small Business Technical Assistance) 6. Amount of Contract Award: $50,000 (CDBG) CFDA Contract # 14.218 7. The term of this Contract shall commence upon the execution date of Contractors' receipt of "Letter to Proceed" from City of Yakima Office of Neighborhood Development Services and terminate on December 31, 2016 at midnight, unless sooner terminated by either party in accordance with Section XXII of Exhibit "A", attached hereto and incorporated herein by this reference 8. This contract award and the rights and obligations of both parties hereto shall be subject to and governed by the following: 1) "Terms and conditions" attached hereto as Exhibit "A" and incorporated herein by this reference; and 2) Operating budget including the funding sources and uses statement and the work plan, attached hereto as Exhibit "B" and incorporated herein by this reference. 3) City of Yakima Resolution No. R-2016-- , A copy of which is attached hereto as Exhibit "C" and incorporated herein by this reference. 9. Final Contract payment shall be subject to satisfactory completion of the project described in Exhibit "B", and satisfaction of all contract terms and conditions as stated in Exhibit "A", Exhibit "B" and Exhibit "C" This written document, together with all of the incorporated exhibits hereto, constitutes the entire Contract and terms of agreement between the parties hereto. City of Yakima Page 1 of 22 IN WITNESS THEREOF the parties have executed this Contract as of the day and year stated below anager Date IG velopment Director Date Contractor Date Title: ---� t101 �1 ATTEST: /OM('' V�•�,9t ` ( +• \Oity Clerk , ,( City Contract No e20 - q7 Resolution No.: %2- 0/ 6- 0 (o 3 City of Yakima Page 2 of 22 EXHIBIT "A" TERMS AND CONDITIONS DESIGNATION The City of Yakima, as recipient of a housing and community development grant from the U.S. Department of Housing and Urban Development, hereby designates Contractor to undertake, and the Contractor hereby agrees to undertake that certain community development or housing assistance project described in Exhibit "B", Scope of Work (hereinafter "the project") II SUB -GRANT A. NOTICE TO PROCEED No work on the project shall occur prior to or without written approval from the City of Yakima Office of Neighborhood Development Services (ONDS) ONDS shall furnish the Contractor with written notice to proceed upon release of funds from HUD related to the project pursuant to 24 CFR Part 58 B. AMOUNT OF GRANT The City hereby sub -grants to the Contractor $50,000.00 for said project. III GENERAL BUDGET PROVISIONS The City reserves the right to hold payment until adequate documentation has been provided by the Contractor and reviewed by the City. The Contractor agrees to the following provisions in satisfying the terms and conditions of this contract: A. PAYMENT AND DISBURSEMENTS Disbursements by the City of Yakima from this contract/grant award shall be on a reimbursement basis covering actual expenditures by the Contractor or obligations of the Contractor currently due and owing, but not paid Disbursements shall be limited to allowable costs and so shall be made upon the occurrence of all the following, in addition to any other conditions contained herein or in the special conditions 1. Receipt by the City of Yakima ONDS of a written reimbursement request on forms provided by the City of Yakima ONDS supported by copies of vouchers, invoices, salary and wage summaries, or other acceptable documentation, and 2. Determination by the City of Yakima ONDS that the expenditures or obligations for which reimbursement is sought constitute allowable costs under the principles set forth in Federal Management Circular 74-4 "eligible costs under the CDBG Program" and that also fall within the applicable Project Budget. City of Yakima Page 3 of 22 B. No payment shall be made for any service rendered by the Contractor except for services within the scope of a category set forth in the budget in Exhibit "B" of this Contract, and all funds received must be used for service as identified in Exhibit "B" of this Contract. C. 1 The Contractor shall submit to the City of Yakima ONDS a written request for approval of budget revision when a proposed revision would result in an increase or decrease of ten percent (10%) or more per home, from what has been set forth in the approved budget subject category. The City's written budget revision approval must be received by the Contractor prior to the Contractor incurring any expenditures against the revised budget subject categories 2 When the revision of the Contractor budget does not exceed ten percent (10%) of an approved budget subject category, the Contractor must submit a revised budget to the City of Yakima ONDS prior to the submittal of claims against the budget. IV COMMENCEMENT OF WORK The City of Yakima ONDS shall furnish the Contractor with written notice to proceed upon release of funds from HUD related to the project. No work on the project shall occur prior to the notice to proceed without written approval from the City of Yakima ONDS in accord with Sec.11, "Sub -Grant "A" (above). V BILLING PROCEDURES The Contractor shall submit monthly written claims for reimbursement of services performed under this contract in the manner prescribed in paragraph III above, and as prescribed by the City of Yakima ONDS. VI LOCAL FINANCIAL SUPPORT The sub -grant shall not be utilized to substantially reduce the amount of local financial support for community development activities below the level of such support prior to the availability of such assistance. VII BUDGET SURPLUS The Contractor agrees that funds determined by the City of Yakima ONDS to be surplus budget funds at the end of the project shall be subject to cancellation by the City of Yakima ONDS and may be negotiated if they are to be included in future Contracts Assets purchased with CDBG funds shall continue to be used in accordance with its original purpose as provided in 24CFR 570.503 (b)(8). City of Yakima Page 4 of 22 VIII COMPLIANCE WITH LAWS A. GENERAL The Contractor, in performance of this Contract, agrees to comply with all applicable Federal, State and Local Laws and ordinances, and the rules and regulations promulgated by the U.S. Department of Housing and Urban Development, including, but not limited to, Federal HOME Regulations and other policies and guidelines established by the City of Yakima ONDS. B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT REQUIREMENTS The following federal provisions may apply, among others, to this Contract: 1. CERTIFICATION REGARDING DEBARMENT, SUSPENSION OR INELIGIBILITY AND VOLUNTARY EXCLUSION—PRIMARY AND LOWER TIER COVERED TRANSACTIONS A. Contractor, defined as the primary participant and it principals, certifies by signing these General Terms and Conditions that to the best of its knowledge and belief that they: B. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency. C. Have not within a three-year period preceding this Agreement, been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public or private agreement or transaction, violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction of justice; D. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this section; and 1 Have not within a three-year period preceding the signing of this Agreement had one or more public transactions (Federal, State, or local) terminated for cause of default. 2. Where the Contractor is unable to certify to any of the statements in this Agreement, the Contractor shall attach an explanation to this Agreement. 3 The Contractor agrees by signing this Agreement that it shall not knowingly enter into any lower tier covered transaction with a person who City of Yakima Page 5 of 22 is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction. 4. The Contractor further agrees by signing this Agreement that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -Lower Tier Covered Transaction," as follows, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions: LOWER TIER COVERED TRANSACTIONS i) The lower tier contractor certifies, by signing this Agreement that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. ii) Where the lower tier contractor is unable to certify to any of the statements in this Agreement, such contractor shall attach an explanation to this Agreement. 2 Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and 24 CFR 570.601 (Discrimination prohibited) 3. The Lead Based Paint Poisoning Prevention Act, 42 USC Section 4831 et seq , and HUD regulations implementing the Act, 24 CFR Part 35, where, residential structures are involved. The Contractor shall provide whatever assistance is necessary to enable the City of Yakima's Building Official to carry out its inspection and certification responsibility under those regulations. 4. Historic and Archaeological Preservation requirements as set forth in 24 CFR Section 570.604.36 CFR Part 800, RCW 27 44.010 (Native American Burial Law), RCW 27.53 010- 090 (Protection of Archaeological Resources), and RCW 43 51.750- 820 (Preservation of Historic Properties). 5. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et seq., implementing regulations, and Chapter 70.92 RCW. 6. Accessibility Standard as set forth in 92.251(a)(3). 7. Clean Air Act as amended, 42 USC Section 1857 et weq; Water Pollution Control Act, as amended, 33 USC Section 1251 et seq ; and Environmental Protection Agency regulations, 40 CFR Part 15. 8. Section 3 of the Housing and Urban Development Act of 1968 (12 USC Section 1701u) and 24 CFR Part 135 (Employment opportunities for project area businesses and low income persons). City of Yakima Page 6 of 22 9 Contract Work Hours and Safety Standards Act, 40 USC Sections 327-333, (Overtime Compensation). 10. Davis -Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and RCW Chapter 3 — 12 (Prevailing Wage Rates). 11. Attachment 0 of the Office of management and Budget Circular, A-102 (Procurement Standards) and Federal Management Circular, FMC 74-4. 12. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42 and 570. 13. Title VI of the Civil Rights Act of 1964 (P.L. 88-352) as amended, and HUD regulations with respect thereto including the regulations under 24 CFR Part 1. In the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, and Contractor shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination upon the basis of race, color, religion, sex, or national origin, in the sale, lease or rental, or in the use or occupancy of such land or any improvements erected or to be erected thereon, and providing that the Contractor, the County, and the United States are beneficiaries of and entitled to enforce such covenant. The Contractor, in undertaking its obligation in carrying out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate. 14. Age Discrimination Act of 1975 (24 CFR 146). 15 Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1). 16 Washington State/Local Building Codes/Housing Quality Standards (24 CFR 882.109). 17. WBE/MBE (24 CFR 85.36 (e)). 21. ENVIRONMENTAL REVIEW A. NEPA The City of Yakima ONDS retains environmental review responsibility for purposes of fulfilling requirements of the National Environmental Policy Act, under which the City of Yakima ONDS may require the Contractor to furnish data, information and assistance for the City's review and assessment in determining whether the City must prepare an Environmental Impact Statement. B SEPA The Contractor retains responsibility for fulfilling the requirements of the State Environmental Policy Act and regulations and ordinance adopted thereunder. C. COMPLIANCE AS PRE -CONDITION City of Yakima Page 7 of 22 Performance by either the City of Yakima ONDS or the Contractor under this Agreement shall be contingent upon satisfaction of all applicable requirements of the National and State Environmental Policy Acts. IX NON-DISCRIMINATION IN EMPLOYMENT A. The City of Yakima is an Equal Opportunity Employer. B. During the performance of this Agreement, Contractor shall not discriminate in violation of any applicable federal, state and/or local law or regulation on the basis of race, color, sex, religion, national origin, creed, age, marital status, disability, honorably discharged veteran or military status, pregnancy, sexual orientation, political affiliation, or the presence of any sensory, mental or physical handicap, and any other classification protected under federal, state, or local law. This provision shall include but not be limited to the following employment, upgrading, demotion, transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, selection for training, and the provision of services under this Agreement. The Contractor specifically agrees to abide by the Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and HUD Anti Discrimination Requirements, 24 CFR 570.601. X NON-DISCRIMINATION IN CLIENT SERVICES A. The Contractor agrees to make all services available through this contract (24 CFR 92.352), and shall not, on the grounds of race, color, sex, religion, national origin, creed, marital status, or age: 1 Deny a qualified individual any facilities, financial aid, services or other benefits provided under this Contract; 2 Provide any service(s) or other benefits to a qualified individual which are different, or are provided in a different manner, from those provided to others under this Contract; separate treatment in any manner related to his receipt of any service(s) or other benefits provided under this Contract; 3. Deny any qualified individual an opportunity to participate in any program provided by this Contract through the provision of service(s) or otherwise, or will afford him an opportunity to do so which is different from that afforded others under this Contract. B. The Contractor shall abide by all provisions of Section 504 of the HEW Rehabilitation Act of 1973 prohibiting discrimination against handicapped individuals either through purpose or intent. City of Yakima Page 8 of 22 C. If assignment and/or subcontracting has been authorized, said assignment or subcontract shall include appropriate safeguards against discrimination in client services binding upon each Contractor or Subcontractor The Contractor shall take such action as may be required to ensure full compliance with the provisions of this clause, including sanctions for noncompliance XI LICENSING AND PROGRAM STANDARDS The Contractor agrees to comply with all applicable Federal, State, City and Municipal standards for licensing, certification and operation of facilities and programs, and accreditation and licensing of individuals, and any other standards or criteria as described in the Contract to assure quality of services. XII MONITORING AND ACCESS TO RECORDS A. Contractor agrees that City may carry out monitoring and evaluation activities so as to ensure compliance by Contractor with this Contractor agreement, with the CDBG and/or HOME Compliance Documents, and with all other laws, regulations, and ordinances related to the performance hereof. Contractor agrees to provide City with any data determined by City to be necessary for its effective fulfillment of its monitoring and evaluation responsibilities. B. At any reasonable time and as often as City may deem necessary, Contractor shall make all of its records available to City, HUD, the Comptroller General of the United States, or any of their authorized representatives, and shall permit City, HUD, the Comptroller General of the United States, or any of their authorized representatives to audit, examine, and make excerpts and/or copies of same. Contractor records shall include, but shall not be limited to, the following: payroll, personnel and employment records, procurement bidding documents, contracts; sales closing statements, and invoices. C The City shall have the right to review and audit all records of the Contractor pertaining to any payment by the City Said records shall be maintained for a period of seven years after the completion of the project. D The Contractor shall be required to make reasonable changes in the services as completed or to be completed if said services fall below the standards and specifications set forth in the Special Terms and Conditions, Project Description, or Statement of Work. XIII SAFEGUARDING OF CLIENT INFORMATION The use or disclosure by any party of any confidential information concerning a recipient or client for any purpose not directly connected with the City's or the Contractor's responsibilities with respect to services provided under this Contract is prohibited except on written consent of the recipient or client, his/her attorney or his/her responsible parent or guardian or as otherwise provided by law City of Yakima Page 9 of 22 XIV ASSIGNMENT AND/OR SUBCONTRACTING The Contractor shall not assign or subcontract any portion of the services provided within the terms of this Contract without obtaining prior written approval from the City All terms and conditions of this Contract shall apply to any approved subcontract or assignment related to the Contract. XV STANDARDS FOR FISCAL ACCOUNTABILITY A. The Contractor agrees to provide project line item draw requests, annual verification of rents, annual audited financial statement to compare income and expenses, records, documents and accounting procedures which accurately reflect all direct and indirect costs related to the performance of this Contract. Such fiscal books, records, documents, reports and other data shall be retained in a manner consistent with the "Budgeting, Accounting, Reporting System for Counties and Cities, and Other Local Governments", hereinafter referred to as "BARS", as issued by the Office of State Auditor, State of Washington The Contractor further agrees that the City of Yakima ONDS shall have the right to monitor and audit the fiscal components of the organization to insure that actual expenditures remain consistent with the terms of this Contract. The Contractor shall retain all books, records, documents and other material relevant to the Contract for seven (7) years after settlement of this Contract. The Contractor agrees that the City of Yakima, the U.S Department of Housing and urban Development, the Washington State Auditor, or their designees, shall have full access to and a right to examine any of said materials at all reasonable times during said period. B. The Contractor agrees that any contributions or payments made for services furnished under this Contract shall be used for the sole benefit of this program C The Contractor agrees to have an audit performed when spending $500,000 or more in federal awards during a fiscal year. A copy of such audit will be presented upon request to ONDS for monitoring purposes. XVI PROGRAM PROPERTY Any personal property having a useful life of more than one year and purchased wholly or in part with sub -grant funds at a cost of three hundred dollars ($300) or more per item, shall upon its purchase or receipt become the property of the City of Yakima and/or federal government. Final ownership and disposition of such property shall be determined under the provisions of Attachment N of OMB, A-102. The Contractor shall be responsible for all such property, including its care and maintenance, and shall comply with the following procedural requirements: 1 Property records shall be maintained accurately and provide for: A description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of HOME funds used City of Yakima Page 10 of 22 in the purchase of property; location, use, and condition of the property. 2. A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years to verify the existence, current utilization, and continued need for the property. 3 A control system shall be in effect to insure adequate safeguards to prevent lose, damage, or theft to the property. Any loss, damage, or theft of the property shall be investigated and fully documented. 4. Adequate maintenance procedures shall be implemented to keep the property in good condition. 5. If the Contractor elects to capitalize and depreciate such nonexpendable personal property in lieu of claiming the acquisition cost as a direct item of cost, title to such property shall remain with the Contractor. An election to capitalize and depreciate or claim acquisition cost as a direct item of cost shall be irrevocable. 6. Nonexpendable personal property purchased by the Contractor under the terms of this Contract, in which title is vested in the City of Yakima or Federal Government shall not be rented, loaned, or otherwise passed to any person, partnership, corporation, association or organization without the prior express approval of the City of Yakima ONDS. 7 Any nonexpendable personal property furnished to, or purchased by, the Contractor, title to which is vested in the City of Yakima ONDS or federal government shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of activities defined in this Contract. 8. As a condition prerequisite to reimbursement for the purchase of nonexpendable personal property, title to which shall vest in the City of Yakima ONDS or federal government, the Contractor agrees to execute such security agreements and other documents as shall be necessary for the City of Yakima ONDS or federal government to perfect its interest in such property in accordance with the "Uniform Commercial Code -Secured Transactions" as codified in Article 9A of RCW Chapter 62A. 9. The Contractor shall be responsible for any loss or damage to the property of the City of Yakima ONDS or federal government (including expenses entered thereunto) which results from negligence, willful misconduct, or lack of good faith on the part of the Contractor to maintain and administer in accordance with sound management practices that property, to ensure that the property will be returned to the City of Yakima ONDS or federal government in like condition to that in which condition the property was acquired by purchase, fair wear and tear accepted. XVII RELATIONSHIP OF THE PARTIES The parties intend that an independent contractor/city relationship shall be created by this Contract. The City of Yakima ONDS is interested only in the results to be achieved, the implementation of services will lie solely with the Contractor. No agent, employee, or representatives of the Contractor shall be deemed to be an employee, agent, servant or representative of the City of Yakima for any purpose, and the employees of the Contractor are not entitled to any of the benefits the City of Yakima provides for City Employees. The Contractor shall be solely and entirely responsible for its acts and for the acts of its agents, employees, servants, Subcontractors, or otherwise during the performance of this Contract. City of Yakima Page 11 of 22 XVIII TAXES AND ASSESSMENTS Contractor shall be solely responsible for and shall pay all taxes, deductions, and assessments, including but not limited to, sales tax, federal income tax, FICA, social security tax, assessments for unemployment and industrial injury insurance, and other deductions from income which may be required by law or assessed against either party as a result of this Contract. In the event the City is assessed a tax or assessment as a result of this Contract, Contractor shall pay the same before it becomes due XIX QUARTERLY REPORT The Contractor agrees to submit written quarterly reports outlining the progress towards completion of activities included in Exhibit B, to the City of Yakima ONDS XX INSURANCE A. NO INSURANCE It is understood that the City does not maintain liability insurance for the Contractor and/or its employees, agents, officers, and subcontractors. B. COMMERCIAL LIABILITY INSURANCE On or before the effective date of this Contract, the Contractor shall provide the City with a certificate of insurance as proof of liability insurance in the amount of One Million Dollars ($1,000,000.00) that clearly states who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to the effect of "this certificate is issued as a matter of information only and confers no right upon the certificate holder" shall be deleted). Said policy shall be in effect for the duration of this Contract. The policy shall name the City, its elected officials, officers, agents and employees as additional insured, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initiated by the insurance agent) The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington. C. COMMERCIAL AUTOMOBILE LIABILITY INSURANCE On or before the date this Contract is fully executed by the parties, Contractor shall provide the City with a certificate of insurance as proof of commercial automobile liability insurance with minimum liability limit of One Million Dollars ($1,000,000.00) combined single limit bodily injury and property damage. Automobile liability will apply to "Any Auto" and be shown on the certificate. The certificate shall clearly state who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to City of Yakima Page 12 of 22 the effect of "this certificate is issued as a matter of information only and confers no right upon the certificate holder" shall be deleted). Said policy shall be in effect for the duration of this Contract. The policy shall name the City, its elected officials, officers, agents, and employees as additional insured/s, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initialed by the insurance agent). The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington. D WORKERS' COMPENSATION The Contractor agrees to pay all premiums provided for by the Workman's Compensation Act of the State of Washington. Evidence of the contractor's workers' compensation coverage will be furnished to the City The contractor holds the City harmless for any injury or death to the contractor's employees while performing this Contract. E. INSURANCE PROVIDED BY SUBCONTRACTORS The Contractor shall ensure that all subcontractors it utilizes for work/services rendered under this Contract shall comply with all of the above insurance requirements. XXI INDEMNIFICATION AND HOLD HARMLESS All services that are rendered or performed under this Contract shall be performed or rendered entirely to the Contractor's own risk and the Contractor expressly agrees to defend, indemnify and hold harmless the City of Yakima and all of its officers, agents, employees and elected officials from any and all liability, loss, fines, penalties or damage, including reasonable cost of defense, they may suffer as a result of claims, demands, actions, or damages to any and all persons or property, costs or judgments against the City of Yakima which result from, arise out of, or are in any way connected with the services to be preformed by the Contractor under this Contract. Nothing in this section of the Contract shall be construed to create a liability or a right of indemnification in any third party XXII CONTRACT, TERMINATION AND CLOSE OUT If the Contractor fails to comply with the terms and conditions of this Contract, the City of Yakima ONDS may pursue such remedies as are legally available including but not limited to, the termination of this Contract in the manner specified herein. City of Yakima Page 13 of 22 A. TERMINATION FOR CAUSE If the Contractor fails to comply with the terms and conditions of this Contract and any of the following conditions exist: 1 The lack of compliance with the provisions of this Contract are of such scope and nature that the City of Yakima ONDS deems continuation of this Contract to be substantially non -beneficial to the public interest; 2. The Contractor has failed to take satisfactory corrective action as directed by the City of Yakima ONDS or its authorized representative within the time specified by same; 3. The Contractor has failed within the time specified by the City of Yakima ONDS or its authorized representative to satisfactorily substantiate its compliance with the terms and conditions of this Contract, then: The City of Yakima ONDS may terminate this Contract in whole or in part, and thereupon shall notify the Contractor of the termination, the reasons therefore and the effective date provided such effective date shall not be prior to notification to the Contractor. After this effective date, no charges incurred under any terminated portions are allowable. B. TERMINATIONS ON OTHER GROUNDS This Contract may also be terminated in whole or in part by mutual agreement of the parties C. TERMINATION FOR WITHDRAWAL, REDUCTION OR LIMITATION OF FUNDING In the event that funding from the Federal government is withdrawn, reduced or limited in any way after the effective date of this Contract, and prior to its normal completion, the City of Yakima ONDS may summarily terminate this Contract as to the funds reduced or limited, notwithstanding any other termination provision of this Contract. If the level of funding so reduced or limited is so great that the City of Yakima ONDS deems that the continuation of the program covered by this Contract is no longer in the best interest of the public, the City of Yakima ONDS may summarily terminate this Contract in whole notwithstanding any other termination provisions of this Contract. Termination under this Section shall be effective upon receipt of written notice by the Contractor or its representative. The City of Yakima ONDS agrees to promptly notify the Contractor of any proposed reduction in funding by Federal or other officials The Contractor agrees that upon receipt of such notice it shall take appropriate and reasonable action to reduce its spending in the affected funding area so that expenditures do not exceed the funding level which would result if said proposed reduction became effective. City of Yakima Page 14 of 22 This Contract may further be terminated by the City of Yakima upon written demand by the City of Yakima ONDS for assurances that the terms of the Project Description are being timely complied with, if such assurances are not made to the City's satisfaction within thirty (30) days of the date of such written demand D. CLOSEOUT In the event that this Contract is terminated in whole or in part for any reason, the following provisions shall apply: 1. Upon written request by the Contractor, the City of Yakima shall make or arrange for payment to the Contractor of allowable reimbursable costs not covered by previous payments. 2 The Contractor shall submit within fifteen (15) days after the date of expiration of this Contract, all financial, performance and other reports required by this Contract, and in addition, will cooperate in a program audit by the City of Yakima or its designee. 3. In the event a financial audit has not been performed prior to closeout of this Contract, the City of Yakima ONDS retains the right to withhold a just and reasonable sum from the final payment to the Contractor after fully considering the recommendation on disallowed costs resulting from the final audit. XXIII COVENANT AGAINST CONTINGENT FEES The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees or bona fide established commercial or selling agency maintained by the Contractor for the purpose of securing business. The City of Yakima ONDS shall have the right, in the event of breach of this clause by the Contractor, to annul this Contract without liability or, in its discretion, to deduct from the Contract price or consideration or otherwise recover the full amount of such commission, percentage, brokerage or contingent fee. XXIV CONFLICT OF INTEREST The City may, by written notice to the Contractor: A. Terminate this Contract if it is found, after due notice and hearing, by the City that gratuities in the form of entertainment, gifts, or otherwise offered or given by the Contractor, or agent or representative of the Contractor, to any officer or employee of the City of Yakima, with a view towards securing this Contract or securing favorable treatment with respect to the awarding or amending or the making of any determinations with respect to this contract. B In the event this Contract is terminated as provided in (A) above, the City of Yakima shall be entitled to pursue the same remedies against the Contractor as it could City of Yakima Page 15 of 22 pursue in the event of a breach of the Contract by the Contractor. The rights and remedies of the City of Yakima provided for in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law. C The Contractor warrants and covenants that it presently has no interest and shall not acquire any interest, directly or indirectly, which could conflict in any manner or degree with the performance of its services hereunder. The Contractor further warrants and covenants that in the performance of this contract, no person having such interest shall be employed. XXV RIGHTS IN DATA The City of Yakima ONDS may duplicate, use and disclose in any manner and for any purposes whatsoever, and have others so do, all data delivered under this agreement. The Contractor hereby grants to the City of Yakima, a royalty -free, non-exclusive, and irrevocable license to publish, translate, reproduce, deliver, perform, dispose of, and to authorize others to do so, all data now or hereinafter covered by copyright: Provided, that with respect to data not originated in the performance of this Contract such license shall be only to the extent that the Contractor has the right to grant such license without becoming liable to pay compensation to others because of such grant. The Contractor shall exert all reasonable effort to advise the City of Yakima ONDS, at the time of delivery of data furnished under this agreement, of all invasions of the right of privacy contained therein and of all portions of such data copied from work not composed or produced in the performance of this agreement and not licensed under this clause The Contractor shall report to the City of Yakima ONDS, promptly and in written detail, each notice or claim of copyright infringement received by the Contractor with respect to all data delivered under this agreement. The Contractor shall not affix any restrictive markings upon any data, and if such markings are affixed, the City of Yakima ONDS shall have the right at any time to modify, remove, obliterate, or ignore such markings. XXVI RULE OF CONSTRUCTION In the event of an inconsistency in this contract/grant award unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: 1. Appropriate provisions of state and federal statutes and regulations including HUD CDBG Regulations. 2. General Terms and Conditions (Exhibit A). 3. Those attachments incorporated by reference herein, including the statement of work/project description, approved HUD grant budget, in the order in which attached, (Exhibit B), 4 City of Yakima Resolution No. R-2016- (Exhibit C), and 5. Any other provisions whether incorporated by reference herein or otherwise City of Yakima Page 16 of 22 provided that nothing herein shall be construed as giving preference to provisions of this contract/grant award over any provisions of law XXVII GOVERNING LAW This Contract has been and shall be construed as having been entered into and delivered within the State of Washington, and it is mutually understood and agreed by each party hereto that this Contract shall be governed by laws of the State of Washington, both as to interpretation and performance XXVIII VENUE The venue for any action to enforce or interpret this Contract shall lie in the Superior Court of Washington for Yakima County, Washington. XXIX MODIFICATION Either party may request changes in this Contract, however, no change or addition to this Contract shall be valid or binding upon either party unless such change or addition be in writing, and executed by both parties, except budget adjustments as specified in Section IV of this Contract. XXX SEVERABILITY It is understood and agreed by the parties hereto that if any part, term, or provision of this Contract is held by the courts to be illegal, the validity of the remaining provisions shall not be affected; and the rights and obligations of the parties shall be construed and enforced as if the Contract did not contain the particular provision held to be invalid. If it should appear that any provision hereof is in conflict with any statutory provision of the United States or the State of Washington, said provision which may conflict, therewith, and shall be deemed modified to conform to such statutory provision. XXXI PROGRAM INCOME Any program income shall be accounted for by the Contractor, over the contract time period, and shall be reported to the City Income is to be used to continue or benefit the program, as determined by the intent and purpose of the project. XXXII RETURN OF FUNDS The Contractor shall return to the City all monies provided hereunder by the City to the Contractor if any of the following occur: 1. The Contractor materially changes the primary purpose and scope of the Project as described on Exhibit "B" to the City of Yakima Page 17 of 22 2. Contract. The Contractor is unable to continue and/or provide services as described in Exhibit "B". XXXIII RECORDS, INSPECTION OF RECORDS, AND RECORD RETENTION 1. All records relating to this Agreement, including records obtained in providing the services outlined herein, shall, at all times, be subject to inspection by and with the approval of the City, but the making of (or failure or delay in making) such inspection or approval shall not relieve the Contractor of responsibility for performance of the services outlined in this Agreement, notwithstanding the City's knowledge of defective or non -complying performance, its substantiality or the ease of its discovery. Contractor shall provide the City sufficient, safe, and proper facilities, and/or send copies of the requested documents to the City. Contractor's records relating to this Agreement and the services provided herein, will be provided to the City upon the City's request. 2. Contractor shall promptly furnish the City with such information and records which are related to the Agreement and services contemplated herein as may be requested by the City. Until the expiration of six (6) years after final payment of the compensation payable under this Agreement or the final date of services provided pursuant to this Agreement, whichever is later, or for a longer period if required by law or by the Washington State Secretary of State's record retention schedule, Contractor shall retain and provide the City access to (and the City shall have the right to examine, audit and copy) all of Contractor's books, documents, papers and records which are related to the Services performed by Contractor under this Contract. 3 All records related to Contractor's services under this Contract must be made available to the City, and the records relating to the Agreement and services provided pursuant to the Agreement are City of Yakima records. They must be produced to third parties, if required pursuant to the Washington State Public Records Act, Chapter 42.56 RCW, or by law. All records relating to Contractor's services under this Agreement must be retained by Contractor for the minimum period of time required pursuant to the Washington State Secretary of State's records retention schedule. 4. The terms of this section shall survive any expiration or termination of this Agreement. City of Yakima Page 18 of 22 Exhibit B RURAL COMMUNITY DEVELOPMENT RESOURCES 2016 MICRO -ENTERPRISE TECHNICAL ASSISTANCE GRANT A.) PROPOSAL SUMMARY/PROJECT ABSTRACT Rural Community Development Resources will provide technical assistance to micro - enterprise and small businesses within the Yakima Renewal Community in accordance with the provisions of 24 CFR §570 201(0) and applicable regulations. The designated CDBG National Objective Eligible Activity pursuant to 24 CFR §570.200(a)(2) and §570 208 is: B.) ASSESSMENT OF NEED/PROBLEM STATEMENT RCDR will leverage the grant with other loan funds available such as Small Business Administration Microloan Fund and the City of Yakima Revolving federal Renewal Community. The small businesses that are being served are those with five or fewer employees, which is consistent with HUD CDBG regulations regarding the provision of microenterprise technical assistance. C.) PROGRAM GOAL AND OBJECTIVES Goal Create and sustain micro -enterprise businesses in the City of Yakima. Objectives 1. Provide technical assistance to qualified micro -enterprise businesses in Yakima in the areas of business planning, taxes and reporting, labor issues and accounting 2. Provide hands-on technical assistance, coaching, and educational training to approximately 25 entrepreneurs. 3 Eight (8) loan packages and business plans will be developed 4 Two (2) business tax seminars for 16 attendees and 2 personal financial literacy seminars for 18 attendees. 5 Four (4) loans will be closed and funded 6 The program goals and objectives shall be consistent with the Eligible Activity set forth in Subsection A above and as further set forth in the attached flow chart directives D.) METHODOLOGY From the contract execution date to continue until the termination date at which it will expire at midnight, RCDR will seek reimbursement for time spent assisting Yakima businesses, to include; Intake, eligibility determination, interviews, training, and loan processing City of Yakima Page 19 of 22 Reimbursement is subject to and conditioned upon RCDR's submission to City of the reports substantially conforming to the forms set forth below. E.) OUTCOMES & EVALUATION As a condition of reimbursement, RCDR will report on its outcomes for each reimbursement period as follows. 1. Inquiries/intakes of Yakima businesses: Target 75 potential clients 2 Technical assistance, coaching, and educational trainings to: Target 25 entrepreneurs 3. Loan applications processed for Yakima businesses: Target 8 loan packages 4. Loans approved/made to Yakima businesses. Target: 4 loans 5. Save or create approximately 4 jobs. RCDR will provide reports on forms substantially conforming to the forms set forth below F.) BUDGET RCDR will be reimbursed up to $50,000 between the contract execution date and terminate on December 31, 2016 at midnight, for eligible activities. [FLOW CHARTS AND FORMS FOLLOW] City of Yakima Page 20 of 22 (THIS PAGE LEFT BLANK INTENTIONALLY FOR "EXHIBIT C RESOLUTION") City of Yakima Page 21 of 22 A.) B) Exhibit "D" SERVICES PROVIDED • Rural Community Development Resources will provide technical assistance to micro - enterprise and small businesses within the Yakima Renewal Community. • Provide technical assistance to qualified micro -enterprise businesses in Yakima in the areas of business planning, taxes and reporting, labor issues and accounting. • Provide hands-on technical assistance and educational training to approximately 50 entrepreneurs. • Develop approximately 8 loan packages of which approximately 8 loans will be funded C.) As a condition of reimbursement, RCDR will report on its outcomes for each reimbursement period as follows: • Inquiries/intakes of Yakima businesses. Target. 50 • Technical assistance provided to Yakima businesses. Target: 50 • Loan applications processed for Yakima businesses Target:8 loan packages • Loans approved/made to Yakima businesses. Target:8 loans with a minimum of two jobs created or retained. City of Yakima Page 22 of 22 ITEM TITLE: SUBMITTED BY: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 5.M. For Meeting of: May 3, 2016 Resolution authorizing a contract with Rural Community Development Resources (RCDR) in the amount of $50,000 in Community Development Block Grant (CDBG) funds to provide technical assistance to microenterprise businesses Joan Davenport, AICP Community Development Director Archie M. Matthews, ONDS Manager 575-6101 SUMMARY EXPLANATION: Rural Community Development Resources (RCDR) is a private, non-profit provider of technical assistance, training and financing for small businesses in the Yakima Valley. RCDR has requested Fifty Thousand Dollars ($50,000) in Community Development Block Grant funding to provide technical assistance to microenterprise businesses in the Yakima Renewal Community. Federal regulations governing the use of CDBG funds for economic development activities allow the City to use such funds to provide assistance to private, for-profit businesses. RCDR's proposal and a standard contract are attached. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL: edif-V— Interim City Manager STAFF RECOMMENDATION: Adopt resolution. BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type ❑ Resolution rcdr 4/20/2016 Resolution ❑ Contract _rcdr 4/11/2016 Contract ❑ RCDR Letter Request CDBG Funds 4/11/2016 Backup Material er r l y, r 1? ?fJrt December 9, 2015 L4.4,44/.11 Ip To: Joan Davenport City of Yakima From: Maria DJ Rodriguez, VP Operations Re: 2016 CDBG Funding Request - Microenterprise Technical Assistance $50,000 Rural Community Development Resources (RCDR) Center for Business Development is requesting $50,000 from the City of Yakima's 2016 CDBG allocation for economic development. These funds will be utilized to provide technical assistance for hard to serve low income individuals that need assistance in setting up a microenterprise (less than 5 employees) as a form of job creation within the City of Yakima. RCDR has a very successful 24 -year track record in assisting microenterprises with relevant and culturally sensitive business counseling, business plan development and educational workshops. In addition, it has been administering a revolving loan fund for over 19 years. We are one of the few successful alternative lenders within Washington State. The default rate is less than 5%. RCDR is also a certified Community Development Financial Institution (CDFI) by the Department of the Treasury and is a certified SBA Intermediary Lender. These designations are hard to obtain and maintaining that certification is based on outcome based performance and adequate and timely reporting requirements. The City of Yakima's continued support to assist microenterprises to create jobs and assets for low income individuals has played a key role in the success of this program. With the CDBG dollars awarded, low income individuals can set up microenterprises. To date, RCDR has leveraged loan outputs of over $1.2 million within the City of Yakima. ear tR t Loan, To}a. $105,000 Jobs 8 �o :. 11 "Jo L [ 2008 7 57% 2009 8 $111,668 9 11 50% 2010 7 $171,612 6 10 71% 2011 5 $ 67,101 3 3 80% 2012^ 5 $234,346 6 5 60% 2013 3 $ 90,000 3 5 66% 2014 3 $121,286 1 5 67% 2015/ 8 $397,480 3 11 50% !NW 46 111J1_ _ 61 Averaae. * Borrowers can obtain more than one loan ^ No CDBG TA grant funds received # Results are current as of 11-30-15 2016 City of Yakima CDBG Grant Funds Request Page 1 of 2 Of the total inquiries in 2015, 46% were from within the City of Yakima, and of those 85% were considered low income individuals. Inquiries vI Yakima Upper Val j Lower Val Tri -Cities o Others HUD Income Verification 80% LMI Job Create/Retain It takes many hours of hands on technical assistance for each entrepreneur. Many times the smaller loans take more time than the bigger loans. The numerous hours spent is needed for long term success of the entrepreneur. Educational workshops on business financial management and business tax reporting are required and important. Learning about asset building as part of the training will create growth and long term sustainability. RCDR has established strong partnerships with local banks. Representatives from banks serve on the Loan Credit Committee (LCC) to review and make recommendations on loan packages requiring funding. These partnerships have enhanced the ability to access loan capitalization funds. The 2016 TA request will serve microenterprises that have five or fewer employees, which is consistent with HUD regulations. The services will include individual business assistance/ coaching, educational workshops, business plan development, and loan packaging. Loans will be made available from other sources such as federal, state and or private banks for those microenterprises that qualify and reside within the City of Yakima. The objectives for 2016 are as follows: • 24 startups and expanding microenterprises will receive TA • 10 loan packages and business plans will be developed • 2 business tax seminars for 16 attendees • 2 personal financial literacy seminars for 18 attendees • 8 loans will be closed and funded 4 eC&V D C/7Z" ft" v: Pi. A 3.1°A.I.IG. Local support is greatly needed to continue providing the needed TA for microenterprises to be successful, grow and create jobs for the local economy. 2016 City of Yakima CDBG Grant Funds Request Page 2 of 2