HomeMy WebLinkAbout04/19/2016 05G Microenterprise Technical Assistance Agreement with RCDRITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDASTATEMENT
Item No. 5.G.
For Meeting of: April 19, 2016
Resolution authorizing a contract with Rural Community
Development Resources (RCDR) in the amount of $50,000 in
Community Development Block Grant (CDBG) funds to provide
technical assistance to microenterprise businesses
Joan Davenport, AICP Community Development Director
Archie M. Matthews, ONDS Manager 575-6101
SUMMARY EXPLANATION:
Rural Community Development Resources (RCDR) is a private, non-profit provider of technical
assistance, training and financing for small businesses in the Yakima Valley. RCDR has
requested Fifty Thousand Dollars ($50,000) in Community Development Block Grant funding to
provide technical assistance to microenterprise businesses in the Yakima Renewal Community.
Federal regulations governing the use of CDBG funds for economic development activities allow
the City to use such funds to provide assistance to private, for-profit businesses. RCDR's
proposal and a standard contract are attached.
ITEM BUDGETED:
Yes
STRATEGIC PRIORITY: Economic Development
APPROVED FOR SUBMITTAL -fr' Interim City Manager
STAFF RECOMMENDATION:
Adopt resolution.
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
O resdution 4/142016 Coyer Memo
O RCDR Letter Request CDBG Funds 4/11/2016 Backup Material
O Contract rcdr 4/11/2016 Contract
A RESOLUTION
RESOLUTION NO. R -2016 -
authorizing the City manager to execute an agreement with Rural
Community Development Resources (RCDR) in the amount of Fifty
Thousand Dollars ($50,000) in Community Development Block
Grant funds to provide technical assistance to microenterprise
businesses within the City of Yakima.
WHEREAS, Rural Community Development Resources (RCDR) is a private, non-
profit provider of technical assistance, training and financial assistance for small business;
and
WHEREAS, RCDR has requested Fifty Thousand dollars ($50,000) in Community
Development Block Grant funding to provide technical assistance services to
microenterprise businesses in the City of Yakima; and
WHEREAS, the City is a recipient and is responsible for the administration of its
annual allocation of Community development Block Grant (CDBG) funds made available
through the United States Department of Housing and Urban Development (HUD) and
authorized by Title I of the Housing and Community development Act of 1974, as
amended; and
WHEREAS, federal regulation governing the use of CDBG funds for economic
development activities allow the City to use such funds to provide grants to assist private,
for-profit businesses; and
WHEREAS, the provision of technical assistance to businesses will provide
substantial appropriate public benefits to the City, particularly by creating new businesses
and jobs; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to execute a grant agreement with Rural
Community Development Resources (RCDR), in the amount of Fifty Thousand dollars
($50,000) in Community Development Block Grant funds to provide technical assistance
to microenterprise businesses within the City of Yakima. A copy of the grant agreement is
attached hereto.
ADOPTED BY THE CITY COUNCIL this 19th day of April, 2016.
ATTEST: Holly Cousens, Mayor Pro Tem
Sonya Claar Tee, City Clerk
er
r
l y, r 1? ?fJrt
December 9, 2015 L4.4,44/.11 Ip
To: Joan Davenport
City of Yakima
From: Maria DJ Rodriguez, VP Operations
Re: 2016 CDBG Funding Request - Microenterprise Technical Assistance $50,000
Rural Community Development Resources (RCDR) Center for Business Development is
requesting $50,000 from the City of Yakima's 2016 CDBG allocation for economic development.
These funds will be utilized to provide technical assistance for hard to serve low income
individuals that need assistance in setting up a microenterprise (less than 5 employees) as a form
of job creation within the City of Yakima.
RCDR has a very successful 24 -year track record in assisting microenterprises with relevant and
culturally sensitive business counseling, business plan development and educational workshops.
In addition, it has been administering a revolving loan fund for over 19 years. We are one of the
few successful alternative lenders within Washington State. The default rate is less than 5%.
RCDR is also a certified Community Development Financial Institution (CDFI) by the Department
of the Treasury and is a certified SBA Intermediary Lender. These designations are hard to obtain
and maintaining that certification is based on outcome based performance and adequate and timely
reporting requirements.
The City of Yakima's continued support to assist microenterprises to create jobs and assets for low
income individuals has played a key role in the success of this program. With the CDBG dollars
awarded, low income individuals can set up microenterprises.
To date, RCDR has leveraged loan outputs of over $1.2 million within the City of Yakima.
ear
tR t
Loan,
To}a.
$105,000
Jobs
8
�o :.
11
"Jo L [
2008
7
57%
2009
8
$111,668
9
11
50%
2010
7
$171,612
6
10
71%
2011
5
$ 67,101
3
3
80%
2012^
5
$234,346
6
5
60%
2013
3
$ 90,000
3
5
66%
2014
3
$121,286
1
5
67%
2015/
8
$397,480
3
11
50%
!NW
46
111J1_
_
61
Averaae.
* Borrowers can obtain more than one loan
^ No CDBG TA grant funds received
# Results are current as of 11-30-15
2016 City of Yakima CDBG Grant Funds Request Page 1 of 2
Of the total inquiries in 2015, 46% were from within the City of Yakima, and of those 85% were
considered low income individuals.
Inquiries
vI Yakima
Upper Val j Lower Val
Tri -Cities o Others
HUD Income Verification
80% LMI Job Create/Retain
It takes many hours of hands on technical assistance for each entrepreneur. Many times the smaller
loans take more time than the bigger loans. The numerous hours spent is needed for long term
success of the entrepreneur. Educational workshops on business financial management and
business tax reporting are required and important. Learning about asset building as part of the
training will create growth and long term sustainability.
RCDR has established strong partnerships with local banks. Representatives from banks serve on
the Loan Credit Committee (LCC) to review and make recommendations on loan packages
requiring funding. These partnerships have enhanced the ability to access loan capitalization
funds.
The 2016 TA request will serve microenterprises that have five or fewer employees, which is
consistent with HUD regulations. The services will include individual business assistance/
coaching, educational workshops, business plan development, and loan packaging. Loans will be
made available from other sources such as federal, state and or private banks for those
microenterprises that qualify and reside within the City of Yakima.
The objectives for 2016 are as follows:
• 24 startups and expanding microenterprises will receive TA
• 10 loan packages and business plans will be developed
• 2 business tax seminars for 16 attendees
• 2 personal financial literacy seminars for 18 attendees
• 8 loans will be closed and funded
4 eC&V D
C/7Z" ft" v:
Pi. A 3.1°A.I.IG.
Local support is greatly needed to continue providing the needed TA for microenterprises to be
successful, grow and create jobs for the local economy.
2016 City of Yakima CDBG Grant Funds Request Page 2 of 2
AGREEMENT BETWEEN THE CITY OF YAKIMA
OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES
AND RURAL COMMUNITY DEVELOPMENT RESOURCES
1 Contracting Organization: Rural Community Development Resources (hereinafter
"Contractor")
2. Address: 24 South 3rd Avenue, Yakima, WA. 98902
3. Phone: (509) 453-5133
4. Contact Person: Luz Bazan Gutierrez,
5. Title of Service or Program being funded: Micro-enterprise/Small Business Technical
Assistance)
6. Amount of Contract Award: $50,000 (CDBG) CFDA Contract # 14.218
7 The term of this Contract shall commence upon the execution date of Contractors'
receipt of "Letter to Proceed" from City of Yakima Office of Neighborhood Development
Services and terminate on December 31, 2016 at midnight, unless sooner terminated by
either party in accordance with Section XXII of Exhibit "A", attached hereto and
incorporated herein by this reference.
8. This contract award and the rights and obligations of both parties hereto shall be subject
to and governed by the following:
1) "Terms and conditions" attached hereto as Exhibit "A" and incorporated herein by
this reference; and
2) Operating budget including the funding sources and uses statement and the work
plan, attached hereto as Exhibit "B" and incorporated herein by this reference.
3) City of Yakima Resolution No. R-2016-- , A copy of which is attached
hereto as Exhibit "C" and incorporated herein by this reference.
9. Final Contract payment shall be subject to satisfactory completion of the project
described in Exhibit "B", and satisfaction of all contract terms and conditions as stated in
Exhibit "A", Exhibit "B" and Exhibit "C".
This written document, together with all of the incorporated exhibits hereto, constitutes the entire
Contract and terms of agreement between the parties hereto.
City of Yakima Page 1 of 22
IN WITNESS THEREOF the parties have executed this Contract as of the day and year stated
below.
Jeff Cutter, Interim City Manager Date
Joan Davenport, Community Development Director Date
Contractor
Title:
ATTEST:
City Clerk
City Contract No.:
Resolution No.:
Date
City of Yakima Page 2 of 22
EXHIBIT "A"
TERMS AND CONDITIONS
DESIGNATION
The City of Yakima, as recipient of a housing and community development grant from the
U.S. Department of Housing and Urban Development, hereby designates Contractor to
undertake, and the Contractor hereby agrees to undertake that certain community
development or housing assistance project described in Exhibit "B", Scope of Work
(hereinafter "the project").
II SUB -GRANT
A. NOTICE TO PROCEED
No work on the project shall occur prior to or without written approval from the
City of Yakima Office of Neighborhood Development Services (ONDS). ONDS
shall furnish the Contractor with written notice to proceed upon release of funds
from HUD related to the project pursuant to 24 CFR Part 58.
B. AMOUNT OF GRANT
The City hereby sub -grants to the Contractor $50,000.00 for said project.
III GENERAL BUDGET PROVISIONS
The City reserves the right to hold payment until adequate documentation has been
provided by the Contractor and reviewed by the City. The Contractor agrees to the following
provisions in satisfying the terms and conditions of this contract:
A. PAYMENT AND DISBURSEMENTS
Disbursements by the City of Yakima from this contract/grant award shall be on a
reimbursement basis covering actual expenditures by the Contractor or
obligations of the Contractor currently due and owing, but not paid.
Disbursements shall be limited to allowable costs and so shall be made upon the
occurrence of all the following, in addition to any other conditions contained
herein or in the special conditions:
1. Receipt by the City of Yakima ONDS of a written reimbursement request
on forms provided by the City of Yakima ONDS supported by copies of
vouchers, invoices, salary and wage summaries, or other acceptable
documentation; and
2. Determination by the City of Yakima ONDS that the expenditures or
obligations for which reimbursement is sought constitute allowable costs
under the principles set forth in Federal Management Circular 74-4
"eligible costs under the CDBG Program" and that also fall within the
applicable Project Budget.
City of Yakima Page 3 of 22
B. No payment shall be made for any service rendered by the Contractor except for
services within the scope of a category set forth in the budget in Exhibit "B" of
this Contract, and all funds received must be used for service as identified in
Exhibit "B" of this Contract.
C. 1 The Contractor shall submit to the City of Yakima ONDS a written request
for approval of budget revision when a proposed revision would result in
an increase or decrease of ten percent (10%) or more per home, from
what has been set forth in the approved budget subject category. The
City's written budget revision approval must be received by the Contractor
prior to the Contractor incurring any expenditures against the revised
budget subject categories.
2. When the revision of the Contractor budget does not exceed ten percent
(10%) of an approved budget subject category, the Contractor must
submit a revised budget to the City of Yakima ONDS prior to the submittal
of claims against the budget.
IV COMMENCEMENT OF WORK
The City of Yakima ONDS shall furnish the Contractor with written notice to proceed upon
release of funds from HUD related to the project. No work on the project shall occur prior to
the notice to proceed without written approval from the City of Yakima ONDS in accord with
Sec.11, "Sub -Grant "A" (above).
V BILLING PROCEDURES
The Contractor shall submit monthly written claims for reimbursement of services
performed under this contract in the manner prescribed in paragraph III above, and as
prescribed by the City of Yakima ONDS.
VI LOCAL FINANCIAL SUPPORT
The sub -grant shall not be utilized to substantially reduce the amount of local financial
support for community development activities below the level of such support prior to the
availability of such assistance.
VII BUDGET SURPLUS
The Contractor agrees that funds determined by the City of Yakima ONDS to be surplus
budget funds at the end of the project shall be subject to cancellation by the City of Yakima
ONDS and may be negotiated if they are to be included in future Contracts. Assets
purchased with CDBG funds shall continue to be used in accordance with its original
purpose as provided in 24CFR 570.503 (b)(8).
City of Yakima Page 4 of 22
VIII COMPLIANCE WITH LAWS
A. GENERAL
The Contractor, in performance of this Contract, agrees to comply with all
applicable Federal, State and Local Laws and ordinances, and the rules and
regulations promulgated by the U.S. Department of Housing and Urban
Development, including, but not limited to, Federal HOME Regulations and other
policies and guidelines established by the City of Yakima ONDS.
B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT
REQUIREMENTS
The following federal provisions may apply, among others, to this Contract:
1. CERTIFICATION REGARDING DEBARMENT, SUSPENSION OR
INELIGIBILITY AND VOLUNTARY EXCLUSION—PRIMARY AND
LOWER TIER COVERED TRANSACTIONS
A. Contractor, defined as the primary participant and it principals, certifies
by signing these General Terms and Conditions that to the best of its
knowledge and belief that they:
B. Are not presently debarred, suspended, proposed for debarment,
declared ineligible, or voluntarily excluded from covered transactions by
any Federal department or agency.
C. Have not within a three-year period preceding this Agreement, been
convicted of or had a civil judgment rendered against them for
commission of fraud or a criminal offense in connection with obtaining,
attempting to obtain, or performing a public or private agreement or
transaction, violation of Federal or State antitrust statutes or commission
of embezzlement, theft, forgery, bribery, falsification or destruction of
records, making false statements, tax evasion, receiving stolen property,
making false claims, or obstruction of justice;
D. Are not presently indicted for or otherwise criminally or civilly charged
by a governmental entity (Federal, State, or local) with commission of
any of the offenses enumerated in paragraph (1)(b) of this section; and
1. Have not within a three-year period preceding the signing of this
Agreement had one or more public transactions (Federal, State, or local)
terminated for cause of default.
2. Where the Contractor is unable to certify to any of the statements
in this Agreement, the Contractor shall attach an explanation to this
Agreement.
3. The Contractor agrees by signing this Agreement that it shall
not knowingly enter into any lower tier covered transaction with a person
City of Yakima Page 5 of 22
who is debarred, suspended, declared ineligible, or voluntarily excluded
from participation in this covered transaction.
4. The Contractor further agrees by signing this Agreement that it
will include the clause titled "Certification Regarding Debarment,
Suspension, Ineligibility and Voluntary Exclusion -Lower Tier Covered
Transaction," as follows, without modification, in all lower tier covered
transactions and in all solicitations for lower tier covered transactions:
LOWER TIER COVERED TRANSACTIONS
i) The lower tier contractor certifies, by signing this
Agreement that neither it nor its principals is presently debarred,
suspended, proposed for debarment, declared ineligible, or voluntarily
excluded from participation in this transaction by any Federal department
or agency.
ii) Where the lower tier contractor is unable to certify to any
of the statements in this Agreement, such contractor shall attach an
explanation to this Agreement.
2. Office of Federal Contract Compliance Programs regulations, 41 CFR Part
60, Executive Order 11246 as amended by Executive Order 12086, and
24 CFR 570.601 (Discrimination prohibited).
3. The Lead Based Paint Poisoning Prevention Act, 42 USC Section 4831
et seq., and HUD regulations implementing the Act, 24 CFR Part 35,
where, residential structures are involved. The Contractor shall provide
whatever assistance is necessary to enable the City of Yakima's Building
Official to carry out its inspection and certification responsibility under
those regulations.
4. Historic and Archaeological Preservation requirements as set forth in 24
CFR Section 570.604.36 CFR Part 800, RCW 27.44.010 (Native
American Burial Law), RCW 27.53.010-.090 (Protection of
Archaeological Resources), and RCW 43.51.750-.820 (Preservation of
Historic Properties).
5. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et
seq., implementing regulations, and Chapter 70.92 RCW.
6. Accessibility Standard as set forth in 92.251(a)(3).
7. Clean Air Act as amended, 42 USC Section 1857 et weq; Water Pollution
Control Act, as amended, 33 USC Section 1251 et seq.; and
Environmental Protection Agency regulations, 40 CFR Part 15.
8. Section 3 of the Housing and Urban Development Act of 1968 (12 USC
Section 1701u) and 24 CFR Part 135 (Employment opportunities for
project area businesses and low income persons).
City of Yakima Page 6 of 22
9. Contract Work Hours and Safety Standards Act, 40 USC Sections 327-333,
(Overtime Compensation).
10. Davis -Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and
RCW Chapter 3 — 12 (Prevailing Wage Rates).
11. Attachment 0 of the Office of management and Budget Circular, A-102
(Procurement Standards) and Federal Management Circular, FMC 74-4.
12. The Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970, as amended, and regulations contained in 24 CFR
Parts 42 and 570.
13. Title VI of the Civil Rights Act of 1964 (P.L. 88-352) as amended, and
HUD regulations with respect thereto including the regulations under 24
CFR Part 1. In the sale, lease or other transfer of land acquired, cleared
or improved with assistance provided under this Agreement, and
Contractor shall cause or require a covenant running with the land to be
inserted in the deed or lease for such transfer, prohibiting discrimination
upon the basis of race, color, religion, sex, or national origin, in the sale,
lease or rental, or in the use or occupancy of such land or any
improvements erected or to be erected thereon, and providing that the
Contractor, the County, and the United States are beneficiaries of and
entitled to enforce such covenant. The Contractor, in undertaking its
obligation in carrying out the program assisted hereunder, agrees to take
such measures as are necessary to enforce such covenant and will not
itself so discriminate.
14. Age Discrimination Act of 1975 (24 CFR 146).
15. Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1).
16. Washington State/Local Building Codes/Housing Quality Standards (24
CFR 882.109).
17. WBE/MBE (24 CFR 85.36 (e)).
21. ENVIRONMENTAL REVIEW
A. NEPA
The City of Yakima ONDS retains environmental review
responsibility for purposes of fulfilling requirements of the National
Environmental Policy Act, under which the City of Yakima ONDS
may require the Contractor to furnish data, information and
assistance for the City's review and assessment in determining
whether the City must prepare an Environmental Impact
Statement.
B. SEPA
The Contractor retains responsibility for fulfilling the requirements
of the State Environmental Policy Act and regulations and
ordinance adopted thereunder.
City of Yakima Page 7 of 22
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. During the performance of this Agreement, Contractor shall not discriminate in
violation of any applicable federal, state and/or local law or regulation on the
basis of race, color, sex, religion, national origin, creed, age, marital status,
disability, honorably discharged veteran or military status, pregnancy, sexual
orientation, political affiliation, or the presence of any sensory, mental or physical
handicap, and any other classification protected under federal, state, or local law.
This provision shall include but not be limited to the following: employment,
upgrading, demotion, transfer, recruitment, advertising, layoff or termination,
rates of pay or other forms of compensation, selection for training, and the
provision of services under this Agreement.
The Contractor specifically agrees to abide by the Office of Federal Contract
Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as
amended by Executive Order 12086, and HUD Anti Discrimination
Requirements, 24 CFR 570.601.
X NON-DISCRIMINATION IN CLIENT SERVICES
A. The Contractor agrees to make all services available through this contract (24
CFR 92.352), and shall not, on the grounds of race, color, sex, religion, national
origin, creed, marital status, or age:
1. Deny a qualified individual any facilities, financial aid, services or other
benefits provided under this Contract;
2. Provide any service(s) or other benefits to a qualified individual which are
different, or are provided in a different manner, from those provided to
others under this Contract; separate treatment in any manner related to
his receipt of any service(s) or other benefits provided under this
Contract;
3. Deny any qualified individual an opportunity to participate in any program
provided by this Contract through the provision of service(s) or otherwise,
or will afford him an opportunity to do so which is different from that
afforded others under this Contract.
B. The Contractor shall abide by all provisions of Section 504 of the HEW
Rehabilitation Act of 1973 prohibiting discrimination against handicapped
individuals either through purpose or intent.
City of Yakima Page 8 of 22
C. If assignment and/or subcontracting has been authorized, said assignment or
subcontract shall include appropriate safeguards against discrimination in client
services binding upon each Contractor or Subcontractor. The Contractor shall
take such action as may be required to ensure full compliance with the provisions
of this clause, including sanctions for noncompliance.
XI LICENSING AND PROGRAM STANDARDS
The Contractor agrees to comply with all applicable Federal, State, City and Municipal
standards for licensing, certification and operation of facilities and programs, and
accreditation and licensing of individuals, and any other standards or criteria as described in
the Contract to assure quality of services.
XII MONITORING AND ACCESS TO RECORDS
A. Contractor agrees that City may carry out monitoring and evaluation activities so
as to ensure compliance by Contractor with this Contractor agreement, with the
CDBG and/or HOME Compliance Documents, and with all other laws,
regulations, and ordinances related to the performance hereof.
Contractor agrees to provide City with any data determined by City to be
necessary for its effective fulfillment of its monitoring and evaluation
responsibilities.
B. At any reasonable time and as often as City may deem necessary, Contractor
shall make all of its records available to City, HUD, the Comptroller General of
the United States, or any of their authorized representatives, and shall permit
City, HUD, the Comptroller General of the United States, or any of their
authorized representatives to audit, examine, and make excerpts and/or copies
of same. Contractor records shall include, but shall not be limited to, the
following: payroll, personnel and employment records; procurement bidding
documents; contracts; sales closing statements; and invoices.
C. The City shall have the right to review and audit all records of the Contractor
pertaining to any payment by the City. Said records shall be maintained for a
period of seven years after the completion of the project.
D. The Contractor shall be required to make reasonable changes in the services as
completed or to be completed if said services fall below the standards and
specifications set forth in the Special Terms and Conditions, Project Description,
or Statement of Work.
XIII SAFEGUARDING OF CLIENT INFORMATION
The use or disclosure by any party of any confidential information concerning a recipient or
client for any purpose not directly connected with the City's or the Contractor's
City of Yakima Page 9 of 22
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, documents, reports and other data shall be retained
in a manner consistent with the "Budgeting, Accounting, Reporting System for
Counties and Cities, and Other Local Governments", hereinafter referred to as
"BARS", as issued by the Office of State Auditor, State of Washington. The
Contractor further agrees that the City of Yakima ONDS shall have the right to
monitor and audit the fiscal components of the organization to insure that actual
expenditures remain consistent with the terms of this Contract. The Contractor
shall retain all books, records, documents and other material relevant to the
Contract for seven (7) years after settlement of this Contract. The Contractor
agrees that the City of Yakima, the U.S. Department of Housing and urban
Development, the Washington State Auditor, or their designees, shall have full
access to and a right to examine any of said materials at all reasonable times
during said period.
B. The Contractor agrees that any contributions or payments made for services
furnished under this Contract shall be used for the sole benefit of this program.
C. The Contractor agrees to have an audit performed when spending $500,000 or
more in federal awards during a fiscal year. A copy of such audit will be
presented upon request to ONDS for monitoring purposes.
XVI PROGRAM PROPERTY
Any personal property having a useful life of more than one year and purchased wholly or in
part with sub -grant funds at a cost of three hundred dollars ($300) or more per item, shall
upon its purchase or receipt become the property of the City of Yakima and/or federal
government. Final ownership and disposition of such property shall be determined under
the provisions of Attachment N of OMB, A-102. The Contractor shall be responsible for all
such property, including its care and maintenance, and shall comply with the following
procedural requirements:
City of Yakima Page 10 of 22
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
government shall, unless otherwise provided herein or approved by the
Contracting Officer, be used only for the performance of activities defined in this
Contract.
8. As a condition prerequisite to reimbursement for the purchase of nonexpendable
personal property, title to which shall vest in the City of Yakima ONDS or federal
government, the Contractor agrees to execute such security agreements and
other documents as shall be necessary for the City of Yakima ONDS or federal
government to perfect its interest in such property in accordance with the
"Uniform Commercial Code -Secured Transactions" as codified in Article 9A of
RCW Chapter 62A.
9. The Contractor shall be responsible for any loss or damage to the property of the
City of Yakima ONDS or federal government (including expenses entered
thereunto) which results from negligence, willful misconduct, or lack of good faith
on the part of the Contractor to maintain and administer in accordance with
sound management practices that property, to ensure that the property will be
returned to the City of Yakima ONDS or federal government in like condition to
that in which condition the property was acquired by purchase, fair wear and tear
accepted.
XVII RELATIONSHIP OF THE PARTIES
The parties intend that an independent contractor/city relationship shall be created by this
Contract. The City of Yakima ONDS is interested only in the results to be achieved, the
implementation of services will lie solely with the Contractor. No agent, employee, or
representatives of the Contractor shall be deemed to be an employee, agent, servant or
representative of the City of Yakima for any purpose, and the employees of the Contractor
City of Yakima Page 11 of 22
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
assessments, including but not limited to, sales tax, federal income tax, FICA, social security
tax, assessments for unemployment and industrial injury insurance, and other deductions
from income which may be required by law or assessed against either party as a result of
this Contract. In the event the City is assessed a tax or assessment as a result of this
Contract, Contractor shall pay the same before it becomes due.
XIX QUARTERLY REPORT
The Contractor agrees to submit written quarterly reports outlining the progress towards
completion of activities included in Exhibit B, to the City of Yakima ONDS.
XX INSURANCE
A. NO INSURANCE
It is understood that the City does not maintain liability insurance for the
Contractor and/or its employees, agents, officers, and subcontractors.
B. COMMERCIAL LIABILITY INSURANCE
On or before the effective date of this Contract, the Contractor shall provide the
City with a certificate of insurance as proof of liability insurance in the amount of
One Million Dollars ($1,000,000.00) that clearly states who the provider is, the
amount of coverage, the policy number, and when the policy and provisions
provided are in effect (any statement in the certificate to the effect of "this
certificate is issued as a matter of information only and confers no right upon the
certificate holder" shall be deleted). Said policy shall be in effect for the duration
of this Contract. The policy shall name the City, its elected officials, officers,
agents and employees as additional insured, and shall contain a clause that the
insurer will not cancel or change the insurance without first giving the City thirty
(30) calendar days prior written notice (any language in the clause to the effect of
"but failure to mail such notice shall impose no obligation or liability of any kind
upon the company" shall be crossed out and initiated by the insurance agent).
The insurance shall be with an insurance company or companies rated A -VII or
higher in Best's Guide and admitted in the State of Washington.
C. COMMERCIAL AUTOMOBILE LIABILITY INSURANCE
On or before the date this Contract is fully executed by the parties, Contractor
shall provide the City with a certificate of insurance as proof of commercial
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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 that are rendered or performed under this Contract shall be performed or
rendered entirely to the Contractor's own risk and the Contractor expressly agrees to
defend, indemnify and hold harmless the City of Yakima and all of its officers, agents,
employees and elected officials from any and all liability, loss, fines, penalties or damage,
including reasonable cost of defense, they may suffer as a result of claims, demands,
actions, or damages to any and all persons or property, costs or judgments against the City
of Yakima which result from, arise out of, or are in any way connected with the services to
be preformed by the Contractor under this Contract.
Nothing in this section of the Contract shall be construed to create a liability or a right of
indemnification in any third party.
XXII CONTRACT, TERMINATION AND CLOSE OUT
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If the Contractor fails to comply with the terms and conditions of this Contract, the City of
Yakima ONDS may pursue such remedies as are legally available including but not limited
to, the termination of this Contract in the manner specified herein.
A. TERMINATION FOR CAUSE
If the Contractor fails to comply with the terms and conditions of this Contract and
any of the following conditions exist:
1. The lack of compliance with the provisions of this Contract are of such
scope and nature that the City of Yakima ONDS deems continuation of
this Contract to be substantially non -beneficial to the public interest;
2. The Contractor has failed to take satisfactory corrective action as directed
by the City of Yakima ONDS or its authorized representative within the
time specified by same;
3. The Contractor has failed within the time specified by the City of Yakima
ONDS or its authorized representative to satisfactorily substantiate its
compliance with the terms and conditions of this Contract, then:
The City of Yakima ONDS may terminate this Contract in whole or in part, and
thereupon shall notify the Contractor of the termination, the reasons therefore
and the effective date provided such effective date shall not be prior to
notification to the Contractor. After this effective date, no charges incurred under
any terminated portions are allowable.
B. TERMINATIONS ON OTHER GROUNDS
This Contract may also be terminated in whole or in part by mutual agreement of
the parties.
C. TERMINATION FOR WITHDRAWAL, REDUCTION OR LIMITATION OF
FUNDING
In the event that funding from the Federal government is withdrawn, reduced or
limited in any way after the effective date of this Contract, and prior to its normal
completion, the City of Yakima ONDS may summarily terminate this Contract as
to the funds reduced or limited, notwithstanding any other termination provision
of this Contract. If the level of funding so reduced or limited is so great that the
City of Yakima ONDS deems that the continuation of the program covered by this
Contract is no longer in the best interest of the public, the City of Yakima ONDS
may summarily terminate this Contract in whole notwithstanding any other
termination provisions of this Contract. Termination under this Section shall be
effective upon receipt of written notice by the Contractor or its representative.
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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 fifteen (15) days after the date of
expiration of this Contract, all financial, performance and other reports
required by this Contract, and in addition, will cooperate in a program
audit by the City of Yakima or its designee.
3. In the event a financial audit has not been performed prior to closeout of
this Contract, the City of Yakima ONDS retains the right to withhold a just
and reasonable sum from the final payment to the Contractor after fully
considering the recommendation on disallowed costs resulting from the
final audit.
XXIII COVENANT AGAINST CONTINGENT FEES
The Contractor warrants that no person or selling agency has been employed or retained to
solicit or secure this contract upon an agreement or understanding for a commission,
percentage, brokerage or contingent fee, excepting bona fide employees or bona fide
established commercial or selling agency maintained by the Contractor for the purpose of
securing business. The City of Yakima ONDS shall have the right, in the event of breach of
this clause by the Contractor, to annul this Contract without liability or, in its discretion, to
deduct from the Contract price or consideration or otherwise recover the full amount of such
commission, percentage, brokerage or contingent fee.
XXIV CONFLICT OF INTEREST
The City may, by written notice to the Contractor:
A. Terminate this Contract if it is found, after due notice and hearing, by the City that
gratuities in the form of entertainment, gifts, or otherwise offered or given by the
Contractor, or agent or representative of the Contractor, to any officer or
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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
furnished under this agreement, of all invasions of the right of privacy contained therein and
of all portions of such data copied from work not composed or produced in the performance
of this agreement and not licensed under this clause. The Contractor shall report to the City
of Yakima ONDS, promptly and in written detail, each notice or claim of copyright
infringement received by the Contractor with respect to all data delivered under this
agreement. The Contractor shall not affix any restrictive markings upon any data, and if
such markings are affixed, the City of Yakima ONDS shall have the right at any time to
modify, remove, obliterate, or ignore such markings.
XXVI RULE OF CONSTRUCTION
In the event of an inconsistency in this contract/grant award unless otherwise provided
herein, the inconsistency shall be resolved by giving precedence in the following order:
1. Appropriate provisions of state and federal statutes and regulations including
HUD CDBG Regulations.
2. General Terms and Conditions (Exhibit A).
3. Those attachments incorporated by reference herein, including the statement of
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work/project description, approved HUD grant budget, in the order in which
attached, (Exhibit B),
4. City of Yakima Resolution No. R-2016- (Exhibit C), and
5. Any other provisions whether incorporated by reference herein or otherwise
provided that nothing herein shall be construed as giving preference to provisions
of this contract/grant award over any provisions of law.
)(XVII GOVERNING LAW
This Contract has been and shall be construed as having been entered into and delivered
within the State of Washington, and it is mutually understood and agreed by each party
hereto that this Contract shall be governed by laws of the State of Washington, both as to
interpretation and performance.
)(XVIII 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
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The Contractor shall return to the City all monies provided hereunder by the City to the
Contractor if any of the following occur:
1. The Contractor materially changes the primary purpose and scope of the Project as
described on Exhibit "B" to the
2. Contract. The Contractor is unable to continue and/or provide services as described in
Exhibit "B".
XXXIII RECORDS, INSPECTION OF RECORDS, AND RECORD RETENTION
1. All records relating to this Agreement, including records obtained in providing the services
outlined herein, shall, at all times, be subject to inspection by and with the approval of the
City, but the making of (or failure or delay in making) such inspection or approval shall not
relieve the Contractor of responsibility for performance of the services outlined in this
Agreement, notwithstanding the City's knowledge of defective or non -complying
performance, its substantiality or the ease of its discovery. Contractor shall provide the
City sufficient, safe, and proper facilities, and/or send copies of the requested documents
to the City. Contractor's records relating to this Agreement and the services provided
herein, will be provided to the City upon the City's request.
2. Contractor shall promptly furnish the City with such information and records which are
related to the Agreement and services contemplated herein as may be requested by the
City. Until the expiration of six (6) years after final payment of the compensation payable
under this Agreement or the final date of services provided pursuant to this Agreement,
whichever is later, or for a longer period if required by law or by the Washington State
Secretary of State's record retention schedule, Contractor shall retain and provide the
City access to (and the City shall have the right to examine, audit and copy) all of
Contractor's books, documents, papers and records which are related to the Services
performed by Contractor under this Contract.
3. All records related to Contractor's services under this Contract must be made available to
the City, and the records relating to the Agreement and services provided pursuant to the
Agreement are City of Yakima records. They must be produced to third parties, if
required pursuant to the Washington State Public Records Act, Chapter 42.56 RCW, or
by law. All records relating to Contractor's services under this Agreement must be
retained by Contractor for the minimum period of time required pursuant to the
Washington State Secretary of State's records retention schedule.
4. The terms of this section shall survive any expiration or termination of this Agreement.
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Exhibit B
RURAL COMMUNITY DEVELOPMENT RESOURCES 2016 MICRO -ENTERPRISE
TECHNICAL ASSISTANCE GRANT
A.) PROPOSAL SUMMARY/PROJECT ABSTRACT
Rural Community Development Resources will provide technical assistance to micro -
enterprise and small businesses within the Yakima Renewal Community in accordance
with the provisions of 24 CFR §570.201(o) and applicable regulations. The designated
CDBG National Objective Eligible Activity pursuant to 24 CFR §570.200(a)(2) and
§570.208 is:
B.) ASSESSMENT OF NEED/PROBLEM STATEMENT
RCDR will leverage the grant with other loan funds available such as Small Business
Administration Microloan Fund and the City of Yakima Revolving federal Renewal
Community.
The small businesses that are being served are those with five or fewer employees, which
is consistent with HUD CDBG regulations regarding the provision of microenterprise
technical assistance.
C.) PROGRAM GOAL AND OBJECTIVES
Goal
Create and sustain micro -enterprise businesses in the City of Yakima.
Obiectives
1. Provide technical assistance to qualified micro -enterprise businesses in Yakima in the
areas of business planning, taxes and reporting, labor issues and accounting.
2. Provide hands-on technical assistance, coaching, and educational training to
approximately 25 entrepreneurs.
3. Eight (8) loan packages and business plans will be developed.
4. Two (2) business tax seminars for 16 attendees and 2 personal financial literacy seminars
for 18 attendees.
5. Four (4) loans will be closed and funded.
6. The program goals and objectives shall be consistent with the Eligible Activity set forth in
Subsection A above and as further set forth in the attached flow chart directives.
D.) METHODOLOGY
From the contract execution date to continue until the termination date at which it will
expire at midnight, RCDR will seek reimbursement for time spent assisting Yakima
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businesses, to include; Intake, eligibility determination, interviews, training, and loan
processing. Reimbursement is subject to and conditioned upon RCDR's submission to
City of the reports substantially conforming to the forms set forth below.
E.) OUTCOMES & EVALUATION
As a condition of reimbursement, RCDR will report on its outcomes for each
reimbursement period as follows:
1. Inquiries/intakes of Yakima businesses: Target 75 potential clients
2. Technical assistance, coaching, and educational trainings to: Target 25 entrepreneurs
3. Loan applications processed for Yakima businesses: Target 8 loan packages
4. Loans approved/made to Yakima businesses. Target: 4 loans
5. Save or create approximately 4 jobs.
RCDR will provide reports on forms substantially conforming to the forms set forth below.
F.) BUDGET
RCDR will be reimbursed up to $50,000 between the contract execution date and
terminate on December 31, 2016 at midnight, for eligible activities.
[FLOW CHARTS AND FORMS FOLLOW]
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(THIS PAGE LEFT BLANK INTENTIONALLY FOR "EXHIBIT C RESOLUTION")
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A.)
B.)
Exhibit "D"
SERVICES PROVIDED
• Rural Community Development Resources will provide technical assistance to micro -
enterprise and small businesses within the Yakima Renewal Community.
• Provide technical assistance to qualified micro -enterprise businesses in Yakima in the
areas of business planning, taxes and reporting, labor issues and accounting.
• Provide hands-on technical assistance and educational training to approximately 50
entrepreneurs.
• Develop approximately 8 loan packages of which approximately 8 loans will be funded .
C.) As a condition of reimbursement, RCDR will report on its outcomes for each
reimbursement period as follows:
• Inquiries/intakes of Yakima businesses. Target: 50
• Technical assistance provided to Yakima businesses. Target: 50
• Loan applications processed for Yakima businesses. Target:8 loan packages
• Loans approved/made to Yakima businesses. Target:8 loans with a minimum of two
jobs created or retained.
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