HomeMy WebLinkAbout09/05/2017 06N Community Development Block Grant Agreement with Rural Community Development ResourcesITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.N.
For Meeting of: September 5, 2017
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 (509) 575-6101
SUMMARY EXPLANATION:
This is a contract agreement with Rural Community Development Resources (RCDR),
previously approved in the 2017 adopted budget, for economic development purposes. Due to
the delay in the Federal allocation of HOME and CDBG funding the City is now executing this
2017 contract.
Rural Community Development Resources (RCD R) 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:
City Manager
STAFF RECOMMENDATION:
Adopt resolution.
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date
D racoluD-i a31,2017
D RCDR Contract EV1012017
• RCDR FOriungl Loiter Fit9,2017
2
Type
COVer Me110
Cciitraci
9[7..k Lip Material
A RESOLUTION
RESOLUTION NO. R -2017 -
authorizing 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.
3
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 5th day of September 2017.
ATTEST: Kathy Coffey, Mayor
Sonya Clear Tee, City Clerk
4
AGREEMENT BETWEEN THE CITY OF YAKIMA
OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES
AND AWARDEE — Rural Community Development Resources
1. AWARDEE.• Rural Community Develr.)pment Resources (hereinafter "Contractor")
2, Address: 24 South 3rd Avenue. Yakima, WA, 98902
3. Phone: (509) 453-5133
4. Contact Person: Maria DJ Rodriquez
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 or Neighborhood Development Services and
terminate on December 31, 2017 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:
(a) "Terms and Conditions" attached hereto as Exhibit "A" and incorporated herein by this
reference; and
(b) The work plan, attached hereto as Exhibit "B" and incorporated herein by this reference.
(c) City of Yakima Resolution No. R- , 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, including, but not limited to,
the submission of the final report and billing invoice information within thirty (30) days of the
contract closing date, and 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.
IN WITNESS THEREOF the parties have executed this Contract as of the day and year stated
below.
CITY OF YAKIMA RURAL COMMUNITY DEV ES URCES
Cliff Moore, City Manager
Date:
By:
Title:
Date:
un y Development Director
ATTEST
Sonya Claar Tee, City Clerk
City Contract No.:
Page 2of22
5
6
EXHIBIT "A"
TERMS AND CONDITIONS
WITNESSETH
WHEREAS, the CITY is the recipient of Community Development Block Grant Funds from the
U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, Rural Community Development Resources (hereinafter referred to as "AWARDEE"
or "Contractor") and has submitted a proposal for use of CDBG funds for an eligible activity under
CDBG regulations;
NOW, THEREFORE in consideration of the mutual covenants and obligations herein contained,
including the Attachments, and subject to the terms and conditions hereinafter stated, the parties
hereto understand and agree as follows:
Section I — Definitions
A. AGENCY — is hereby defined as the Office of Neighborhood Development Services, the CDBG
Program administering agency of the City of Yakima. For the purpose of this Agreement and all
administration of CDBG funds, the AGENCY shall act on behalf of the CITY in the execution and
fiscal and programmatic control of this agreement. The term "Approval by the CITY" or like term
used in this Agreement shall in no way relieve the AWARDEE from any duties or responsibilities
under the terms of this Agreement, or obligation State or local law or regulation.
B. FEE — is hereby defined as the amount of money the CITY agrees to pay and the AWARDEE
agrees to accept as payment in full for all the professional, technical and construction services
rendered pursuant to this Agreement to complete the WORK as further defined in Section III -
SCOPE OF WORK, hereof.
C. WORK — is hereby defined as all the professional, technical and construction services to be
rendered or provided by the AWARDEE as described here.
D. PROJECT — is defined in Section IV below.
E. HOME — is hereby defined as the HOME Investment Partnerships Program as described in 24
CFR Part 92, under the authority of 42 U.S.C. 3535 (d) and 12701 - 12839.
Section II — Term
The AWARDEE expressly agrees to complete all work required by this agreement in accordance
with the timetable set forth.
Milestone Deadline
Project Start Date: : Date of signature.
Interim Milestones/Deadlines (list below):
Project Completion Date: : December 31, 2017
Timely completion of the work specified in this agreement is an integral and essential part of
Page 3 of 22
7
performance. The expenditure of CDBG funds is subject to Federal deadlines and could result in
the loss of the Federal funds. By the acceptance and execution of this agreement, it is understood
and agreed by the AWARDEE that the PROJECT will be completed as expeditiously as possible
and that the AWARDEE will make every effort to ensure that the project will proceed and will not
be delayed. Failure to meet these deadlines can result in cancellation of this contract and the
revocation of CDBG funds. Since it is mutually agreed that time is of the essence as regards this
agreement, the AWARDEE shall cause appropriate provisions to be inserted in all contracts or
subcontracts relative to the work tasks required by this agreement, in order to ensure that the
PROJECT will be completed according to the timetable set forth. It is intended that such provisions
inserted in any subcontracts be, to the fullest extent permitted by law and equity, binding for the
benefit of the CITY and enforceable by the CITY against the AWARDEE and its successors and
assigns to the project or any part thereof or any interest therein.
In the event the AWARDEE is unable to meet the above schedule or complete the above services
because of delays resulting from Acts of God, untimely review and approval by the CITY and
other governmental authorities having jurisdiction over the PROJECT, or other delays that are not
caused by the AWARDEE, the CITY shall grant a reasonable extension of time for completion of
the WORK. It shall be the responsibility of the AWARDEE to notify the CITY promptly in writing
whenever a delay is anticipated or experienced, and to inform the CITY of all facts and details
related to the delay.
Section 111 — Scope of Work
The AWARDEE, in close coordination with the CITY, shall perform all professional services (the
"WORK") necessary to complete the development and occupancy of the following project in full
compliance with the terms of this Agreement, including, but not limited to, Exhibit "B".
It is understood that the AWARDEE will provide a specific working budget and realistic timetable
as relates to: soft costs, development fees and other allowable costs/activities prior to any fund
usage. Said budget shall identify all sources and uses of funds, and allocate CDBG funds to
activities or line items. The aforementioned Work tasks will be performed in essentially the manner
proposed in the AWARDEE's proposal as received by the AGENCY on October 27, 2016: The
aforementioned document will be considered to be a part and portion of this agreement fully
incorporated herein.
Section IV — Reimbursement of Expenses & Developer Fees
A. GENERAL.
Project expenses (excluding developer fee) shall be paid based on vouchers for actual
expenses incurred or paid. Requests for payment must be submitted by the AWARDEE
on forms specified by the CITY, with adequate and proper documentation of eligible costs
incurred in compliance with 92.206 and necessary for HUD IDIS disbursement
requirements. All such expenses shall be in conformance to the approved project budget.
Budget revision and approval shall be required prior to payment of any expenses not
conforming to the approved project budget.
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
Page 4 of 22
8
following provisions in satisfying the terms and conditions of this contract.
B. 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:
Receipt by the City of Yakima ONDS of a written reimbursement request
on forms approved 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.
The Contractor shall submit monthly written claims for reimbursement of services
performed under this Agreement.
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.
D. 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.
E. CITY reserves the right to inspect records and project sites to determine that
reimbursement and compensation requests are reasonable. The CITY also reserves the
right to hold payment until adequate documentation has been provided and reviewed.
F. Within thirty (30) days of the contract closing date, AWARDEE shall submit a final invoice
that includes all unpaid invoices and a final report. Final payment shall be made only after
the CITY has determined that all services have been rendered, files and documentation
delivered (including the final invoices and final report), and units have been placed in
service in full compliance with CDBG regulations, including submission of a completion
report and documentation of eligible activities. If the final invoices and report are not
Page 5 of 22
9
received within thirty (30) days of the contract closing date, AWARDEE understands and
agrees that it will not receive any payment for any final pending unpaid invoices.
G, CITY shall have the right to review and audit all records of the AWARDEE pertaining to
any payment by the CITY. Said records shall be maintained for a period of six years after
completion.
Section V — Project Requirements
The AWARDEE agrees to comply with all requirements of the CDBG Program as stated in 24
CFR Part 92, including but not limited to the following.
A. No project funds will be advanced, and no costs can be incurred, until the City has conducted
an environmental review of the proposed project site as required under 24 CFR Part 58. The
environmental review may result in- a decision to proceed with, modify or cancel the project.
Notwithstanding any provision of this Agreement, the parties hereto agree and acknowledge that
this Agreement does not constitute a commitment of funds or site approval, and that such
commitment of funds or approval may occur only upon satisfactory completion of environmental
review and receipt by the CITY of a release of funds from the U.S. Department of Housing and
Urban Development [or the State of Washington] under 24 CFR Part §58. Further, the AWARDEE
will not undertake or commit any funds to physical or choice -limiting actions, including property
acquisition, demolition, movement, rehabilitation, conversion, repair or construction prior to the
environmental clearance, and must indicate that the violation of this provision may result in the
denial of any funds under the agreement.
B. Any HOME funds advanced to the PROJECT will be secured by a note and mortgage, and in
the case of a rental project, a deed covenant as required by 24 CFR Part 92.
C. The AWARDEE will ensure that any expenditure of CDBG funds will be in compliance with the
requirements at 92.206, and acknowledges that CDBG funds will only be provided as
reimbursement for eligible costs incurred, including actual expenditures or invoices for work
completed.
D. If the project is to be owner -occupied, the AWARDEE will ensure that all HOME assisted units
will be in compliance with 24 CFR 92.254, including documenting that the property is eligible
under 92.254(a)(1) — (2), and will maintain compliance during the minimum compliance period. (If
the property also contains a rental unit assisted with HOME funds, the AWARDEE will ensure that
occupancy complies with the requirements of 92.254(a)(6).) If the project is to be a rental, the
AWARDEE will ensure that that project is eligible under 92.214, and that it will meet the applicable
standards of 24 CFR 92.252 253 at occupancy and for the minimum compliance period.
E. The designated HOME -assisted units of this PROJECT will meet the affordability requirements
as found in 24 CFR 92.252 (rental) or 92.254 (owner -occupied) as applicable. The AWARDEE
shall collect and maintain Project beneficiary information pertaining to household size, income
levels, racial characteristics, and the presence of Female Headed Households in order to
determine low and moderate -income benefit in a cumulative and individual manner. Income
documentation shall be in a form consistent with HOME requirements as stated in the HUD
Technical Guide for Determining Income and Allowances Under the HOME Program.
Page 6 of 22
10
F. In the selection of occupants for PROJECT units, the AWARDEE shall comply with all
nondiscrimination requirements of 24 CFR 92.350. If the project consists of 5 or more units, the
AWARDEE will implement affirmative marketing procedures as required by 24 CFR 92.351. Such
procedures are subject to approval of the AGENCY.
G. If the PROJECT is occupied at the time of this commitment, the AWARDEE will comply with
the relocation requirements of 24 CFR 92.353.
H. AWARDEE shall assure compliance with 24 CFR 92.251 as relates to Property Standards and
Housing Quality Standards (HQS), Accessibility Standards under 24 CFR 92.251(a)(3) as
applicable, and Lead Based Paint Requirements as found in 24 CFR 92.355 and 24 CFR Part 35.
I. If the PROJECT is to be owner -occupied, the AWARDEE shall assure that any NOTES and
MORTGAGES recorded for homebuyers shall be in compliance with 24 CFR 92.254 and that the
AWARDEE will monitor each unit for principal residency (under 92.254(a)(3)) and
resale/recapture (under 92.254 (a)(4) — (5)).
J. AWARDEE will provide any documentation required by the AGENCY regarding match as may
be required to document match for purposes of the HOME program.
K. If any project under this agreement involves the construction or rehabilitation of 12 or more
HOME -assisted units, the AWARDEE shall comply with the provisions of the Davis -Bacon Act (40
U.S.C. 276 a to a - 7) as supplemented by AGENCY of Labor regulations (29 CFR, Part 5), as
amended.
L. If the property is sold through a lease -purchase agreement, the AWARDEE will ensure
compliance with 92.254(a)(7), as modified by the 1999 Appropriations Act, Section 599B.
M. AWARDEE will be monitored by the AGENCY for compliance with the regulations of 24 CFR
92 for the compliance period specified above. The AWARDEE will provide reports and access to
project files as requested by the AGENCY during the PROJECT and for Six (6) years after
completion and closeout of the AGREEMENT.
Section VI — Repayment of Loan
A. All HOME funds are subject to repayment in the event the PROJECT does not meet the Project
Requirements as outlined above.
B. It is understood that upon the completion of the PROJECT, any HOME funds reserved but not
expended under this agreement will revert to the CITY.
C. If the PROJECT is for owner -occupancy, the AWARDEE shall lend the HOME funds to the
individual buyers in an amount sufficient to make the purchase affordable. Any HOME funds that
reduce the price of the property below the fair market value of the property shall be secured by a
HOME note and mortgage as required in 92.254(a)(5)(ii), using the note and mortgage prescribed
or approved by the AGENCY (and consistent with the method of recapture identified in the CITY's
"Consolidated Plan"). All net sales proceeds from the sale of units are considered to be CDHO
proceeds that may be retained by the AWARDEE and used in conformance with 24 CFR
92.300(a)(2), to be retained by the CDHO and used to further affordable housing for qualified first
time home buyers within the City of Yakima.
Page 7 of 22
11
Section VII — CHDO Provisions
It is understood that the AWARDEE has certified that it is and will maintain CHDO (Community
Housing Development Organization) status for the term of the PROJECT/AGREEMENT in
accordance with 24 CFR 92. The AWARDEE agrees to provide information as may be requested
by the AGENCY to document its continued compliance, including but not limited to an annual
board roster and certification of continued compliance. Any funds advanced as CHDO pre -
development funds must be in compliance with 92.301, and are forgivable only under the terms
in 92.301.
Any funds advanced to the CHDO as CHDO Operating Expenses must be expended in
compliance with 24 CFR 92.208. Any funds that the CHDO is permitted to retain as CHDO
proceeds from this project shall be used in compliance with 24 CFR 92.300(a)(2) or as specified
in this Agreement. If the project is rental, the AWARDEE will create and follow a tenant
participation plan as required in 24 CFR 92.303.
Section VIII — Procurement Standards
The AWARDEE shall establish procurement procedures to ensure that materials and services are
obtained in a cost-effective manner. When procuring for services to be provided under this
agreement, the AWARDEE shall comply at a minimum with the nonprofit procurement standards
at 24 CFR 84.40 - .48.
In addition, the following requirements are imposed on any procurement under this PROJECT:
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:
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
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 loss,
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
Page 8 of 22
12
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.
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.
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.
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 excepted.
In addition, it is understood that any AWARDEE that can be considered to be a religious
organization shall abide by all portions of 24 CFR 92.257.
Section IX — Conflict of Interest Provisions
The AWARDEE 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 AWARDEE further warrants and covenants that in the
performance of this contract, no person having such interest shall be employed. HOME conflict
of interest provisions, as stated in 92.356, apply to the award of any contracts under the
agreement and the selection of tenant households to occupy HOME -assisted units. No employee,
agent, consultant, elected official, or appointed official of the AWARDEE may obtain a financial
interest or unit benefits from a HOME -assisted activity, either for themselves or those with whom
they have family or business ties, during their tenure or for one year thereafter. This prohibition
includes the following:
Page 9 of 22
13
Any interest in any contract, subcontract or agreement with respect to a HOME -assisted
project or program administered by the AWARDEE, or the proceeds thereunder; or
Any unit benefits or financial assistance associated with HOME projects or programs
administered by the AWARDEE, including:
Occupancy of a rental housing unit in a HOME -assisted rental project;
Receipt of HOME tenant -based rental assistance;
Purchase or occupancy of a homebuyer unit in a HOME -assisted project;
Receipt of HOME homebuyer acquisition assistance; or
Receipt of HOME owner -occupied rehabilitation assistance.
This prohibition does not apply to an employee or agent of the AWARDEE who occupies a HOME
assisted unit as the on-site project manager or maintenance worker. In addition, no member of
Congress of the United States, official or employee of HUD, or official or employee of the
Participating Jurisdiction shall be permitted to receive or share any financial or unit benefits arising
from the HOME -assisted project or program. Prior to the implementation of the HOME -assisted
activity, exceptions to these provisions may be requested by the AWARDEE in writing to the
Participating Jurisdiction. The AWARDEE must demonstrate and certify that the policies and
procedures adopted for the activity will ensure fair treatment of all parties, and that the covered
persons referenced in this policy will have no inside information or undue influence regarding the
award of contracts or benefits of the HOME assistance. The Jurisdiction may grant exceptions or
forward the requests to HUD as permitted by 24 CFR 92.356, 85.36 and 84.42, as they apply.
Section X — City Responsibilities
CITY shall furnish the AWARDEE with the following services and information from existing CITY
records and CITY files:
A. CITY shall provide to the AWARDEE information regarding its requirements for the PROJECT;,
B. CITY will provide the AWARDEE with any changes in CDBG regulations or program limits that
affect the project, including but not limited to income limits, property value limits and rent limits.
C. CITY will conduct progress inspections of work completed to protect its interests as lender and
regulatory authority for the project, and will provide information to the AWARDEE regarding any
progress inspections or monitoring to assist it in ensuring compliance. CITY's review and approval
of the WORK will relate only to overall compliance with the general requirements of this
Agreement and CDBG regulations, and all CITY regulations and ordinances. Nothing contained
herein shall relieve the AWARDEE of any responsibility as provided under this Agreement.
Section XI — Equal Employment Opportunity
During the performance of this contract, the AWARDEE agrees as follows:
Page 10 of 22
14
A. AWARDEE will not discriminate against any employee or applicant for employment because
of race, color, religion, sex, or national origin(s). The AWARDEE will take affirmative action to
ensure the applicants are employed, and that employees are treated during employment, without
regard to their race, color, religion, sex or national origin(s). Such action shall include, but not be
limited to, the following: employment, upgrading, demotion, or transfer, recruitment or recruitment
advertising; layoff or termination; rates of pay or other forms of compensation; and selection for
training, including apprenticeship. The AWARDEE agrees to post in conspicuous places,
available to employees and applicants for employment, notices to be provided by the contracting
officer of the CITY setting forth the provisions of this nondiscrimination clause.
B. AWARDEE will, in all solicitations or advertisements for employees placed by or on behalf of
the AWARDEE, state that all qualified applicants will receive consideration for employment
without regard to race, color, religion, sex, or national origin.
C. AWARDEE will send to each labor union or representative of workers with which he has a
collective bargaining agreement or other contract or understanding, a notice to be provided by
the CITY's contracting officer, advising the labor union or worker's representative of the
AWARDEE's commitments under Section 202 of Executive Order No. 11246 of September 24,
1965, and shall post copies of the notice in conspicuous places available to employees and
applicants for employment.
D. AWARDEE will comply with all provisions of Executive Order 11246 of September 24, 1965,
and of the rules, regulations, and relevant orders of the Secretary of Labor.
E. AWARDEE will furnish all information and reports required by Executive Order 11246 of
September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or
pursuant thereto, and will permit access to its books, records, and accounts by the AGENCY and
the Secretary of Labor for purposes of investigation to ascertain compliance with such rules,
regulations, and order.
F. In the event the AWARDEE is found to be in noncompliance with the nondiscrimination clauses
of this contract or with any of such rules, regulations or orders, this contract may be canceled,
terminated or suspended in whole or in part and the AWARDEE may be declared ineligible for
further Government contracts in accordance with procedures authorized in Executive Order
11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked
as provided in Executive Order 11246 of September 24, 1965 or by rule, regulations, or order of
the Secretary of Labor or as otherwise provided by law.
G. AWARDEE will include the provisions of paragraphs (a) through (g) of this agreement in every
subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary
of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that
such provisions will be binding upon each subcontractor or vendor. The AWARDEE will take such
action with respect to any subcontract or purchase order as the AGENCY may direct as a means
of enforcing such provisions, including sanctions for noncompliance; provided, however, that in
the event the AWARDEE becomes involved in, or is threatened with litigation with a subcontractor
or vendor as a result of such direction by the AGENCY, the AWARDEE may request the United
States to enter into such litigation to protect the interest of the United States.
Section XII — Labor, Training & Business Opportunity
Page 11 of 22
15
AWARDEE agrees to comply with the federal regulations governing training, employment and
business opportunities as follows:
A. It is agreed that the WORK to be performed under this agreement is on a project assisted under
a program providing direct Federal financial assistance from the US Department of Housing and
Urban Development and is subject to the requirements of Section 3 of the Housing and Urban
Development Act of 1968, as amended, 12 U.S.C. 1701 u, as well as any and all applicable
amendments thereto. Section 3 requires that, to the greatest extent feasible, opportunities for
training and employment be given low and moderate income residents of the project area, and
that contracts for work in connection with the project be awarded to business concerns which are
located in, or owned in substantial part by persons residing in the project area.
B. AWARDEE shall comply with the provisions of said Section 3 and the regulations issued
pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 Code of
Federal Regulations and all applicable rules and orders of the AGENCY of Housing and Urban
Development issued thereunder as well as any and all applicable amendments thereto prior to
the execution of this contract as well as during the term of this contract. The AWARDEE certifies
and agrees that it is under no contractual or other disability, which would prevent it from complying
with these requirements as well as any and all applicable amendments thereto.
C. AWARDEE will include this Section 3 clause in every subcontract for work in connection with
the project and will, at the direction of the CITY, take appropriate action pursuant to the
subcontractor upon a finding that the subcontractor is in violation of regulations issued by the
Secretary of Housing and Urban Development, in 24 Code of Federal Regulations. The
AWARDEE will not subcontract with any subcontractor where it has notice or knowledge that the
latter has been found in violation of regulations under 24 code of Federal Regulations and will not
let any subcontract unless the subcontractor has first provided it with a preliminary statement of
ability to comply with these requirements as well as with any and all applicable amendments
thereto.
D. Compliance with the provisions of Section 3, the regulations set forth in 24 Code of Federal
Regulations and all applicable rules and orders of the AGENCY of Housing and Urban
Development issued thereunder prior to the execution of the contract shall be a condition
precedent to federal financial assistance being provided to the PROJECT as well as a continuing
condition, binding upon the applicant or recipient for such assistance, its successors, and assigns.
Failure to fulfill these requirements shall subject the AWARDEE or recipient, its contractors and
subcontractors, its successors, and assigns to those sanctions specified by 24 Code of Federal
Regulations as well as with any and all applicable amendments thereto.
Section XIII — Compliance with Federal, State & Local Laws
A. GENERAL. The AWARDEE covenants and warrants that it will comply with all
applicable laws, ordinances, codes, rules and regulations of the state local and federal
governments, and all amendments thereto, including, but not limited to; Title 8 of the Civil Rights
Act of 1968 PL.90-284; Executive Order 11063 on Equal Opportunity and Housing Section 3 of
the Housing and Urban Development Act of 1968; Housing and Community Development Act of
1974, as well as all requirements set forth in 24 CFR 92 of the HOME INVESTMENT
PARTNERSHIP PROGRAM. The AWARDEE covenants and warrants that it will indemnify and
hold the City forever free and harmless with respect to any and all damages whether directly or
indirectly arising out of the provisions and maintenance of this contract. AWARDEE agrees to
Page 12 of 22
16
comply with all applicable standards, orders, or requirements issued under section 306 of the
Clean Air Act (42 U.S.C. 1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive
Order 11738, and Environmental Protection Agency regulations (40 CFR part 15). AWARDEE
further warrants and agrees to include or cause to be included the criteria and requirements of
this section in every non-exempt subcontract in excess of $100,000. AWARDEE also agrees to
take such action as the federal, state or local government may direct to enforce aforesaid
provisions.
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) AWARDEE, 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
(i) 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.
(ii) Where the AWARDEE is unable to certify to any of the statements in
this Agreement, the AWARDEE shall attach an explanation to this
Agreement.
(iii) The AWARDEE agrees by signing this Agreement that it shall not
knowingly enter into any lower tier covered transaction with a person who
is debarred, suspended, declared ineligible, or voluntarily excluded from
participation in this covered transaction.
Page 13 of 22
17
(iv) The AWARDEE 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:
(e) LOWER TIER COVERED TRANSACTIONS
(i) Each 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 seq; 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).
9. Contract Work Hours and Safety Standards Act, 40 USC Sections 327-333,
(Overtime Compensation).
Page 14 of 22
18
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, 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, the City, 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)).
Section XIV — Suspension & Termination
In accordance with 24 CFR 85.43, suspension or termination may occur if the AWARDEE
materially fails to comply with any term of the award, and that the award may be terminated for
convenience in accordance with 24 CFR 85.44.
If, through any cause, the AWARDEE shall fail to fulfill in timely and proper manner its obligations
under this contract, or if the AWARDEE shall violate any of the covenants, agreements, or
stipulations of this contract, the CITY shall thereupon have the right to terminate this contract by
giving written notice to the AWARDEE of such termination and specifying the effective date
thereof, at least five (5) days before the effective date of such termination. In such event, the
AWARDEE may be entitled to receive just and equitable compensation for any work satisfactorily
completed hereunder to the date of said termination if all necessary documentation is provided to
the CITY. Notwithstanding the above, the AWARDEE shall not be relieved of liability to the CITY
for damages sustained by the CITY by virtue of any breach of the contract by the AWARDEE and
the CITY may withhold any payments to the AWARDEE for the purpose of setoff until such time
as the exact amount of damages due the CITY from the AWARDEE is determined whether by
court of competent jurisdiction or otherwise.
Page 15 of 22
19
Section XV — Termination for Convenience of the CITY
The CITY may terminate for its convenience this contract at any time by giving at least thirty (30)
days notice in writing to the AWARDEE. If the contract is terminated by the CITY, as provided
herein, the City will reimburse for any actual and approved expenses incurred, including those
costs involved in terminating the contracts and shutting down the work as of the date of notice,
and the AWARDEE will be paid as a FEE an amount which bears the same ratio to the total
compensation as the services actually performed bear to the total service of the AWARDEE
covered by this contract, less payments of compensation previously made. Claims and disputes
between the parties will be submitted to the American Arbitration Association for resolution. Award
or judgment may be entered in any court having jurisdiction thereof.
Section XVI — Default -Loss of Grant Funds
If the AWARDEE fails in any manner to fully perform and carry out any of the terms, covenants,
and conditions of the agreement, and more particularly if the AWARDEE refuses or fails to
proceed with the work with such diligence as will insure its completion within the time fixed by the
schedule set forth in Exhibit B of this agreement, the AWARDEE shall be in default and notice in
writing shall be given to the AWARDEE of such default by the AGENCY or an agent of the
AGENCY. If the AWARDEE fails to cure such default within such time as may be required by such
notice, the CITY, acting by and through the AGENCY, may at its option terminate and cancel the
contract. In the event of such termination, all grant funds awarded to the AWARDEE pursuant to
this agreement shall be immediately revoked and any approvals related to the PROJECT shall
immediately be deemed revoked and canceled. In such event, the AWARDEE will no longer be
entitled to receive any compensation for work undertaken after the date of the termination of this
agreement, as the grant funds will no longer be available for this project. Such termination shall
not affect or terminate any of the rights of the CITY as against the AWARDEE then existing, or
which may thereafter accrue because of such default, and the foregoing provision shall be in
addition to all other rights and remedies available to the CITY under the law and the note and
mortgage (if in effect), including but not limited to compelling the AWARDEE to complete the
project in accordance with the terms of this agreement, in a court of equity. The waiver of a breach
of any term, covenant or condition hereof shall not operate as a waiver of any subsequent breach
of the same or any other term, covenant, or condition hereof.
Section XVII — Reporting Responsibilities
AWARDEE agrees to submit any and all quarterly reports required by HUD or the CITY to the
AGENCY on the following due dates: October 1, January 1, April 1, and July 1, next following the
date of this agreement. The AGENCY will send the AWARDEE one reminder notice if the quarterly
report has not been received fourteen (14) days after the due date. If the AWARDEE has not
submitted a report fourteen (14) days after the date on the reminder notice, the CITY will have
the option to terminate the contract as described in this agreement. In addition, the AWARDEE
agrees to provide the AGENCY information as required to determine program eligibility, in
meeting national objectives, and financial records pertinent to the project. Additional reporting
requirements are included in Exhibit B.
Section XVIII — Inspection, Monitoring & Access to Records
CITY reserves the right to inspect, monitor, and observe work and services performed by the
AWARDEE at any and all reasonable times. CITY reserves the right to audit the records of the
AWARDEE any time during the performance of this Agreement and for a period of six (6) years
after final payment is made under this Agreement. If required, the AWARDEE will provide the
AGENCY with a certified audit of the AWARDEE's records representing the Fiscal Year during
Page 16 of 22
20
which the PROJECT becomes complete whenever the amount listed in SECTION VII is at or
exceeds $300,000, pursuant to the requirements of OMB Circular A-133. Access shall be
immediately granted to the CITY, HUD, the Comptroller General of the United States, or any of
their duly authorized representatives to any books, documents, papers, and records of the
AWARDEE or its contractors which are directly pertinent to that specific contract for the purpose
of making audit, examination, excerpts, and transcriptions.
Section XIX — General Conditions
A. All notices or other communication which shall or may be given pursuant to this Agreement
shall be in writing and shall be delivered by personal service, or by certified and regular mail
addressed to the other party at the address indicated herein or as the same may be changed from
time to time. Such notice shall be deemed given on the day on which personally served; or, if by
mail, on the third day (not including Sundays or holidays) after being posted or the date of actual
receipt, whichever is earlier.
City address:
Awardee address:
City Manager
Yakima City Hall
129 North 2nd Street
Yakima, Washington 98901:
Rural Community Development Resources
24 South 3rd Avenue
Yakima, Washington 98902:
B. Title and paragraph headings are for convenient reference and are not a part of this Agreement.
C. In the event of conflict between the terms of this Agreement and any terms or conditions
contained in any attached documents, the terms in this Agreement shall rule.
D. No waiver or breach of any provision of this Agreement shall constitute a waiver of a
subsequent breach of the same or any other provision hereof, and no waiver shall be effective
unless made in writing.
E. The parties hereto agree that this Agreement shall be construed and enforced according to the
laws of the State of Washington.
F. Should any provisions, paragraphs, sentences, words or phrases contained in this Agreement
be determined by a court of competent jurisdiction to be invalid, illegal or otherwise unenforceable
under the laws of the State of Washington or the City of Yakima, such provisions, paragraphs,
sentences, words or phrases shall be deemed modified to the extent necessary in order to
conform with such laws, or if not modifiable to conform with such laws, then same shall be deemed
severable, and in either event, the remaining terms and provisions of this Agreement shall remain
unmodified and in full force and effect.
G. AWARDEE shall comply with the provisions of the Copeland Anti -Kick -Back Act (18 U.S.C.
874) as supplemented in the AGENCY of Labor Regulations (29 CFR Part 3), as amended.
H. AWARDEE shall comply with the provisions of sections 103 and 107 of the Contract Work
Page 17 of 22
21
Hours and Safety Standard Act (40 U.S.C. 327-330) as supplemented by AGENCY of Labor
regulations (29 CFR, Part 5), as amended.
I. AWARDEE further warrants and agrees to include or cause to be included the criteria and
requirements of paragraphs (G) through (H) of this section in every nonexempt subcontract. The
AWARDEE also agrees to take such action as the federal, state or local government may direct
to enforce aforesaid provisions.
J. The obligations undertaken by AWARDEE pursuant to this Agreement shall not be delegated
or assigned to any other person or agency unless CITY shall first consent to the performance or
assignment of such service or any part thereof by another person or agency.
K. This Agreement shall be binding upon the parties hereto, their heirs, executors, legal
representative, successors and assigns.
L. AWARDEE shall indemnify and save CITY harmless from and against any negligent claims,
liabilities, losses and causes of action which may arise out of AWARDEE's activities under this
Agreement, including all other acts or omissions to act on the part of AWARDEE, including any
person acting for or on its behalf, and, from and against any orders, judgments, or decrees which
may be entered, and from and against all costs, attorney's fees, expenses and liabilities incurred
in the defense of any such claims, or in the investigation thereof.
M. AWARDEE and its employees and agents shall be deemed to be independent contractors,
and not agents or employees of the CITY, and shall not attain any rights or benefits under the civil
service or pension ordinances of the CITY, or any rights generally afforded classified or
unclassified employee; further they shall not be deemed entitled to state Compensation benefits
as an employee of the CITY.
N. Funding for this Agreement is contingent on the availability of funds and continued
authorization for program activities and is subject to amendment or termination due to lack of
funds, or authorization, reduction of funds, and/or change in regulations.
Page 18 of 22
October 27, 2016
To: Joan Davenport
City of Yakima
From: Maria DJ Rodriguez, Executive Director
Re: 2017 CDBG Funding Request - Microenterprise Technical Assistance $50,000
22
Rural Community Development Resources Center for Business Development (Center) is
requesting $50,000 from the City of Yakima's 2017 CDBG allocation for economic development
within the city of Yakima. These funds will be utilized to provide technical assistance for hard to
serve low income individuals that seek technical or financial assistance to start or expand a
microenterprise as a form of job creation or retention within the City of Yakima.
The Center has an outstanding 25 -year track record in assisting microenterprises with relevant and
culturally sensitive business counseling & coaching, business plan development, educational
workshops and access to financing. Additionally, the Center has been administering a revolving
loan fund for over 20 -years with a less than 3% default rate and 64% business retention making
the Center one of the few successful altemative lenders within Washington State. The Center 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 Yaldma'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, employ low income individuals,
create assets and increase wealth. This in tum, gets invested back into the local economy. To date,
the Center has leveraged loan outputs of over $1.4 million within the City of Yakima.
YearDirect
Loan s*
Total
invests
Jobe
Created
Jobs
Retained
ur
�'/ l<,l�ii if
008
7
$105,000
8
11
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
9
$405.993
3
12
50%
2016#
6
$190,000
12
8
33%
TOTAL
53
$1,497,006
51
70
S
Average
* Borrowers can obtain more than one loan
^ No CDBG TA grant funds received
Results are current as of 9-30-16
2017 City of Yakima CDBG Grant Funds Request Page 1 of 2
23
Of the total inquiries in as of September 30, 2016, 47% were from within the City of Yakima, and
of those 68% were considered low income individuals.
Inquiries
■ City of Yak
at Tri -city
Lower Valley Upper Valley
Other
HUD Income Verification
80% IMI 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 capital funds.
The 2017 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 2017 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 fmancial literacy seminars for 18 attendees
• 8 loans will be closed and funded
Local support is greatly needed to continue providing the needed TA for microenterprises to be
successful, grow and create jobs for the local economy.
2017 City of Yakima CDBG Grant Funds Request Page 2 of 2
24
Exhibit "B"
Rural Community Development Resources
A.) PROPOSAL SUMMARY/PROJECT ABSTRACT
RCDR is providing technical assistance for hard to serve low income individuals that seek
technical or financial assistance to start or expand a microenterprise as a form of job
creation or retention within the City of Yakima.
B.) ASSESSMENT OF NEED/PROBLEM STATEMENT
RCDR will serve microenterprises that have five or fewer employees. The service 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.
C.) PROGRAM GOAL AND OBJECTIVES
• 24 startups and expanding microenterprises will receive TA
• 10 loan packages and business plans will be developed
• 2 business tax seminars for 16 attendees
• 8 loans will be closed and funded
•
D.) METHODOLOGY
Providing services to microenterprises that have five or fewer employees. To 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.
E.) OUTCOMES & EVALUATION
As a condition of reimbursement, RCDR will,
1. 24 startups and expanding microenterprises will receive TA
2. 10 loan packages and business plans will be developed
3. 2 business tax seminars for 16 attendees
4. 8 loans will be closed and funded
F.) BUDGET
RCDR will be reimbursed up to $50,000 between the contract execution date and terminate
on December 31, 2017 at midnight, for eligible activities, subject to the terms and conditions
of the Contract.
G) QUARTERLY REPORTS
RCDR shall provide quarterly reports, starting three months after entering into this
Contract, that describe what outcomes have been met (including names of businesses
started or expanded or benefitted by this Contract, the dates of tax seminars and the
number of loan packages and loans funded, all as of the date of the quarterly report), and
any other information that further exhibits actions taken to attain the outcomes listed
herein.
Page 21 of 22
25
EXHIBIT "C" RESOLUTION
Page 22 of 22
26
October 27, 2016
To: Joan Davenport
City of Yakima
From: Maria DJ Rodriguez, Executive Director
Re: 2017 CDBG Funding Request - Microenterprise Technical Assistance $50,000
Rural Community Development Resources Center for Business Development (Center) is
requesting $50,000 from the City of Yakima's 2017 CDBG allocation for economic development
within the city of Yakima. These funds will be utilized to provide technical assistance for hard to
serve low income individuals that seek technical or financial assistance to start or expand a
microenterprise as a form of job creation or retention within the City of Yakima.
The Center has an outstanding 25 -year track record in assisting microenterprises with relevant and
culturally sensitive business counseling & coaching, business plan development, educational
workshops and access to financing. Additionally, the Center has been administering a revolving
loan fund for over 20 -years with a less than 3% default rate and 64% business retention making
the Center one of the few successful alternative lenders within Washington State. The Center 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, employ low income individuals,
create assets and increase wealth. This in tum, gets invested back into the local economy. To date,
the Center has leveraged loan outputs of over $1.4 million within the City of Yakima.
Year
Direct
Loans'
Total
Invested
Jobs
Created
Jobs
Retained
°
/o LMI
2008
7
$105,000
8
11
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
9
$405,993
3
12
50%
2016#
6
$190,000
12
8
33%
TOTAL
53
81,497,006
51
70
59%
Average
* Borrowers can obtain more than one loan
^ No CDBG TA grant funds received
# Results are current as of 9-30-16
2017 City of Yakima CDBG Grant Funds Request Page 1 of 2
27
Of the total inquiries in as of September 30, 2016, 47% were from within the City of Yakima, and
of those 68% were considered low income individuals.
Inquiries
■ City of Yak M Lower Valley a Upper Valley
Y Tri -city ri Other
HUD Income Verification
rt 80% WI Job Create/Retaln
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 capital funds.
The 2017 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 2017 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
Local support is greatly needed to continue providing the needed TA for microenterprises to be
successful, grow and create jobs for the local economy.
2017 City of Yakima CDBG Grant Funds Request Page 2 of 2