HomeMy WebLinkAbout07/01/2008 19 Microenterprise Business Assistance Agreement with RCDR Using CDBG Funding BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
0 AGENDA STATEMENT
Item No. j 9
For Meeting of July 1, 2008
A RESOLUTION: Authorizing the City Manager to execute an agreement with, Rural
Community Development Resources (RCDR) for twenty -five thousand
dollars ($25,000) in Community Development Block Grant funds to provide
technical assistance to microenterprise businesses within the Yakima
Renewal Community. ,
SUBMITTED BY: William Cook, Director of Community and Economic Development
575 -6113
CONTACT: Michael Morales, Deputy Director CED 575 -3533
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 Twenty -Five Thousand Dollars ($25,000) in 2008
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 is attached.
0 RCDR presented their request to the City Council Neighborhood Development Committee on
June 11, 2008; and the committee voted unanimously to forward the proposal to the city council
with a recommendation to approve.
Approval of the attached Resolution authorizes and directs staff to finalize the attached draft
agreement, subject to City Attorney approval.
Resolution X Ordinance Contract Other (Specify)
Funding Source 2008 CDBG Economic Development funds
APPROVED FOR SUBMITTAL: - -- 7- • '
Ci Manager
STAFF RECOMMENDATION: . Staff recommends approval
BOARD /COMMISSION RECOMMENDATION: Neighborhood Development Committee
recommends approval.
COUNCIL ACTION:
4110 ,
RESOLUTION NO. R -2008-
0 A RESOLUTION Authorizing the City Manager to execute an agreement with Rural
Community Development Resources (RCDR) in the amount of Twenty -Five
Thousand Dollars ($25,000) in Community Development Block Grant funds
to provide technical assistance to microenterprise businesses within the
Yakima Renewal Community.
WHEREAS, Rural Community Development Resources (RCDR) is a private, non - profit
provider of technical assistance, training and financial assistance for small businesses; and
WHEREAS, RCDR has requested Twenty -Five Thousand Dollars ($25,000) in 2008
Community Development Block Grant funding to provide technical assistance services to
microenterprise businesses in the City of Yakima federal Renewal Community; 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 regulations 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
iii WHEREAS, the City has determined that CDBG assistance is necessary and appropriate
f or RCDR to provide technical assistance services to businesses within the City of Yakima federal
Renewal Community; and
WHEREAS, the provision of CDBG assistance to RCDR for this purpose will fulfill the
economic growth promotion requirements of the City's Renewal Community; and
WHEREAS, the provision of technical assistance to businesses would 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 an agreement with Rural Community
Development Resources (RCDR) in the amount of Twenty -Five Thousand dollars ($25,000) in
Community Development Block Grant funds to provide technical assistance to microenterprise
businesses within the Yakima Renewal Community.
ADOPTED BY THE CITY COUNCIL this 1st day of July 2008
David Edler, Mayor
ATTEST:
• Ci ty Clerk
„.,,,A4Viiti44-1-t;,;47gr 4v,
RURAL COMMUNITY DEVELOPMENT RESOURCES
June 5, 2008
To: Council Neighborhood Development Committee
City of Yakima
From: Luz Bazan Gutierrez
President & CEO
Re: - Microenterprise Funding for Entrepreneurs
The Rural Community Development Resources (RCDR) Small Business Lending is
requesting $25,000 grant from the City of Yakima's CDBG funding allocation. The funds
will be used to provide microenterprise technical assistance, business workshops and for
processing of microloans for low /moderate income entrepreneurs in the Renewal
Community.
Based in downtown Yakima, RCDR has a 16 year successful track record of providing
entrepreneur educational workshops and managing a revolving loan fund for new and
emerging businesses in South Central Washington, and has partnered with the City of
• Yakima on several projects.
Within the City of Yakima, the revolving loan fund has provided 71 direct loans to 43
borrowers, totaling $1,388,648, with an average loan of $19,500. The reason some
borrowers have obtained more than one loan is we believe it is important to start with a
small loan and provide technical assistance in order to maintain a healthy growth
level. This will better prepare a new business for the challenges and financial
responsibilities that come with that growth. This also makes the business more
"bankable” in the future for conventional lending.
The demographic profile of RCDR's portfolio is very diverse, as evidenced by the
following data:
65% were male 35% were female
75% service industry 25% retail, including restaurant
8o% Latino /Hispanic 16% white 2% African American 2% Asian.
There were 153+ jobs created which averages about 2.5 jobs per loan. While 10 of our
businesses have gone defunct, only 3 of those businesses defaulted on their loan, with
other 7 continuing to pay the debt from their own resources. This is reflective of the
close relationship that we develop with our borrowers.
RCDR Small Business Lending Center for Latino Farmarsl (CLF)
P.O. Box 9492 • Yakima, WA 98909 24 South 3rd Avenue • Yakima, WA 98902
(509) 453 -5133 • (509) 453 -5165 Fax (509) 453 -3157 • (509) 453 -3565 Fax
e -mail: rcdr @charter.net e- mail: latinofarmers @charter.net
Page 2, Council Neighborhood Dev Com Mtg 6 -11 -08
The demand for our services is clearly evident in the number of inquiries by potential
borrowers. In 2007, a total of 192 entrepreneurs requested assistance or loans in our
service region, of which 84 were from within the City of Yakima. Of the 84, 10 followed
up for assistance and received an average of 15 hours of technical assistance with their
business plans. Six of them completed loan packages and 3 were approved and obtained
a loan.
As evidenced by this analysis, the amount of staff time and resources needed to assist a
microenterprise is often disproportionate to the amount of financing they actually need;
however, the time and effort spent at this level, pays significant dividends to the
economic community over the long term as businesses are forced to prioritize their
financial needs, are not allowed to overextend their debt, and are prepared to fulfill their
regulatory obligations as a business in this community through compliance with local,
state and federal regulations, including acquiring appropriate licenses, fees to be paid
and the reporting of business taxes.
The entrepreneurs that are served are those with five or fewer employees, which is
consistent with HUD CDBG regulations regarding the provision of microenterprise
technical assistance. City of Yakima entrepreneurs are a microcosm of where small
business is headed nationally. Yakima entrepreneurs, as per the nation, are
increasingly women or minorities. Significant percentages in the city have limited
English skills, so typically need a broader array of services delivered for a longer period
of time than those who are fluent in English or fully acclimated to their community.
Many are first generation immigrants without formal business training and limited
experience with American business practices and regulations. When there is an
economic slump, self employment is seen as an option. Even so, the rate of new
business formation is relatively high and is heavily weighted into the services and
construction sectors. The City of Yakima, therefore, is distinct from communities like
Seattle or Olympia on the west side of the state, or from Richland, when it comes to how
to serve its entrepreneurial community.
RCDR has strong, active partnerships with six banks in the region. Bank representatives
serve on the Loan Review Committee that review and make recommendations to the
board of directors on all loan packages. These partnerships, and the leadership and
credibility of the organization within the banking community, has also produced
significant loan fund capitalization from Banner Bank ($250,000 in 2004), and Bank of
America ($250,000 in 2008). These partnerships enhance the efforts of the program
and broaden the outreach of these institutions to the emerging markets in our region.
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• Page 3, Council Neighborhood Dev Com Mtg 6 -n -o8
However, the costs of providing these services, and the volume of businesses requesting
and receiving this assistance continues to increase. In addition, there is a substantially
higher cost in providing continual monitoring of these higher risk loans to the low
income and minority population. While the service is invaluable and has had a positive
impact for Yakima, RCDR cannot afford to serve this target population without
significant financial resources for putting out loans and the required follow up and
support needed for this target population.
The $25,000 grant will have a significant impact toward improving our level of service
and the number of businesses that are ultimately financed in 2008. The primary
financing and leveraging goal of the grant will be to steer Yakima Renewal Community
businesses toward the $250,000 loan capital from Bank of America, in addition to other
sources of financing within the RCDR network for the remainder of 2008.
Based on our experience with CDBG fund support, RCDR expects to receive
approximately 70 inquiries, provide hands -on technical assistance and educational
training to 25 entrepreneurs, 10 will develop loan packages of which 5 loans will be
funded at an average of $25,000 per loan. The five businesses funded will save or create
approximately 13 jobs.
We respectfully request your consideration of this first time request for 2008, and we
look forward to working on a year round program for 2009.
We ask for your positive consideration of this economic development request.
•
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Wage
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AGREEMENT BETWEEN THE CITY OF YAKIMA
OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES
1. Contracting Organization: - Rural Community Development Resources jhereinafter
"Contractor")
2. Address: 24 South 3 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: $25.000 (CDBG)
7. The term of this Contract shall commence upon execution hereof and shall terminate at
midnight, December 31. 2008 . 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 induding 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- 2008-49, A copy of which is attached hereto as I •
Exhibit °C" and incorporated herein by this reference.
9. Final Contract payment shall be subject to satisfactory completion of the projed 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.
IN WITNESS THEREOF the parties have executed this Contract as of the day and year stated below.
William Cook, CED Director Date
R.A. Zais, Jr., City Manager Date
Contractor Date
Title:
ATTEST:
City Clerk
City Contract No.:
• 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 $25.000.00 for said proiect.
111 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.
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.
S 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
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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 fumish 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.
V BILLING PROCEDURES
A. 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).
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. 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).
2. 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 cany
out its inspection and certification responsibility under those regulations.
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3. 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).
4. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et seq.,
implementing regulations, and Chapter 70.92 RCW.
5. 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.
6. 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).
7. Contract Work Hours and Safety Standards Act, 40 USC Sections 327 -333,
(Overtime Compensation).
8. Davis -Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and RCW
Chapter 3 —12 (Prevailing Wage Rates).
9. Attachment 0 of the Office of management and Budget Circular, A -102
(Procurement Standards) and Federal Management Circular, FMC 74 -4.
10. The Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970, as amended, and regulations contained in 24 CFR Parts 42 and 570.
• 11. 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.
12. Age Discrimination Act of 1975 (24 CFR 146).
13. ' Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1).
14. Housing Quality Standards (24 CFR 882.109).
15. WBE/MBE (24 CFR 85.36 (e)).
16. 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
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an Environmental Impact Statement. O
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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
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. The Contractor agrees that it shall not discriminate against any employee or applicant
on the grounds of race, creed, color, religion, national origin, sex, marital status, age,
or the presence of any sensory, mental or physical handicap. Such action shall
include, but not , be limited to: employment, upgrading, demotion or transfer,
recruitment or recruitment advertising, layoff or termination; rates of pay or other forms
of compensation; and programs for training including apprenticeships.
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.
•
C. If assignment and/or subcontracting has been authorized, said assignment or
subcontract shall indude appropriate safeguards against discrimination in dient
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
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clause, including sanctions for noncompliance. Off
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XI LICENSING AND PROGRAM STANDARDS
The Contractor agrees to comply with all applicable Federal, State, County 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 five 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.
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,
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documents, reports and other data shall be retained in a manner consistent with tl o ,-
"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.
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 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 govemment shall, unless
otherwise provided herein or approved by the Contracting Officer, be used only for the
performance of activities defined in this Contract.
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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
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govemment, the Contractor agrees to execute such security agreements and other
documents as shall be necessary for the City of Yakima ONDS or federal government 4
to perfect its interest in such property in accordance with the "Uniform Commercial G
Code - Secured Transactions" as codified in Article 9A of RCW Chapter 62A. `
9. ' The Contractor shall be responsible for any Toss or damage to the property of the City
of Yakima ONDS or federal govemment (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 retumed 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.
XVIII TAXES AND ASSESSMENTS
Contractor shall be solely responsible for and shall pay all taxes, deductions, and
IP 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.
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 dause 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.
8 of 13 8/30/05
• 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 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 to rendered or performed under this Contract will 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, inducing 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 tenors 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.
A. TERMINATION FOR CAUSE
•
If the Contractor fails to comply with the terms and conditions of this Contract and any
9 of 13 • 8/30/05
of the following conditions exist: iJ 0
•. 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.
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 thirty (30) days after the date of expiration
10 of 13 8/30/05
40
of this Contract, all financial, performance and other reports required by
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 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 fumished 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
11 of 13 8/30/05
upon any data, and if such markings are affixed, the City of Yakima ONDS shall have CAI'.
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- 2008 -49 (Exhibit C), and
5. Any other provisions whether incorporated by reference herein or otherwise 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 govemed 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
12 of 13 8/30/05
The Contractor shall retum to the City all monies provided hereunder by the City to t ,
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 Contrail. .
2. The Contractor is unable to continue and /or provide services as described in Exhibit
•
7
13 of 13 8/30/05
00
Exhibit "B"
RURAL COMMUNITY DEVELOPMENT RESOURCES 2008 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.
B.) ASSESSMENT OF NEED/PROBLEM STATEMENT
Small businesses and micro - enterprise are the fastest growing segment of the
economy, especially among the first generation Hispanic immigrant population.
RCDR was established to provide technical assistance and financing to this
industry, and has established a successful track record of leveraging private, state
and federal dollars for these activities.
This $25,000 grant will have a significant impact toward improving the level of
service and the number of businesses that are ultimately financed in 2008. The
primary financing and leveraging goal of the grant will be to steer Yakima Renewal
Community businesses toward the $250,000 loan capital from Bank of America, in
addition to other sources of financing within the RCDR network for the reminder of
2008.
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 and educational training to approximately
25 entrepreneurs.
3. Develop approximately 10 loan packages of which approximately 5 loans will be
funded at an average of $25,000 per loan.
D.) METHODOLOGY
From the contract date through December 31, 2008, RCDR will seek
reimbursement for time spent assisting Yakima businesses, to include; Intake,
eligibility determination, interviews, training, and loan processing.
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: 11 per month
2. Technical assistance P rovided to Yakima businesses. Target: 4 per month e 94/410
3. Loan applications processed for Yakima businesses. Target:2 per month
4. Loans approved/made to Yakima businesses. Target:1 per month
F.) BUDGET
RCDR will be reimbursed up to $25,000 between the contract acceptance date and
December 31, 2008 for eligible activities.
•
.(„
EXHIBIT C
• 4fr p (Resolution)
•