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HomeMy WebLinkAbout1997-008 EVC Revolving Loan Fund Agreement for Servicesuioo-ye MM/w//:dW4 4|S|A 'uoyemjoiU!ejoiu JOJ \10AJ0s XBJ j0>jEiuxvd IdO PSAIBOBJ SBAA XB^SIL)J_CONTRACT NO,97008 AGREEMENT FOR REVOVLXNG LOAN FUND SERVICES THIS AGREEMENT is made and entered into in Atascadero,San Luis Gtuspo County, CA,by and between the City of Atascadero (City)and The Economic Vitality Corporation of San Luis Obispo (Contractor),as follows: 1.RECITALS: A.City is an eligible jurisdiction which has applied for and received approval of a Housing and Community Development Block Grant from San Luis Obispo County in the amount of S35,000.00,hereinafter referred ro as Block Grant,for the purpose of providing business loans,Reference is hereby made to the Subrecepient Contract dated October 3.1996. attached hereto and incorporated herein by reference).City desires to have Contractor administer the Revolving Loan Fund of the Block Grant,provide all loan management services,and administer die Reuse Program,Contractor is a California non-profit public benefit corporation. GRANT ADMINISTRATION SERVICES TO BE PERFORMED BY THF CONTRACTOR:2. A,Contractor shall administer the City's Revolving Loan Fund Block Grant.Contractor shall be responsible for the completion,administration and supervision of all tasks relating to the administration of the Block Grant,including personnel,subcontractors,and subconsultants. Contractor shall provide all $uch administration as may be necessary or appropriate to achieve theBlock Grant's stated objectives and terms and conditions,as specifically set forth in the Subrecepient Agreement,dated Octobers,1996.and attached hereto and incorporated herein by reference,as well as all representations contained in the City's application for said Block Grant,Services to be performed may be modified with the mutual written consent of the parties hereto. B.The Contractor shall monitor employment of targeted income groups,submit financial and performance reports>and manage grant activities according to 24-C.F.R.,Sections 570.201 through 570.203 U,S.Department of Housing and Urban Development. C,Contractor will maintain Block Grant records on behalf of the City during the term of this Agreement in accordance with the requirements of the U-S.Department of Housing and Urban Development.The City and any City-authorized agents will be provided such records immediately upon written request to Contractor.Contractor will deliver to the City all original records maintained by Contractor as part of this Agreement,within fifteen (15)days if requested by City. D.Contractor will maintain grant-related fiscal records in accordance with Title 24 Chapter V CF.R.U.S,Department of Housing and Urban Development and,OMB circular No.A-L22 Contractor will submit to City,quarterly performance reports,to include: 1.An assessment of compliance with the objective established by the Subrecepient Agreement,dated October 3.1996,attached hereto and incorporated herein,by reference.Further,in the event results of activities can be quantified,unit costs will be reported. 2.Recommendations for actions to be taken by City to resolve identified problems. 1 Atascadcroagmr. .._i lAld 90:629 /003/2L/U :s}BQ £-J93/1.:06Ed 9090 l-9fr 908 LUOJd woo ip7\AMM//:auil :;ISIA UOjJBUJJO^U!0JOUJ JOJ J0AJ0S XBJ J0>JBWXVd IdO p0A(0O0J SBAA XBjS|l|J_ 3.Recommendations for revising budget estimates if necessary;the grant administration services shall commence upon execution of this Agreement and shall conclude on the Community Development Block Grant closure dare. E.Contractorshall retain all books and records relevant to this contract for a minimum of three years after the expiration of the contract and any and all amendments hereto or for three years after the conclusion or resolution of any and all audits or litigation relevant to this contract, whichever is later. REUSE PROGRAM SERVICES TO BE PERFORMED BY THE CONTRACTOR3. A.Contractor shall be responsible for the implementation and administration of a Reuse program.Said program will utilize the proceeds from,the repayment of loans made under the grant to make additional loans.Said program shall comply will all applicable requirements of the U.S.Department of Housing and Urban Development E,Upon the grant conditions being fulfilled and completion of its obligations pursuant to part 2 above,Contractor shall continue the administration of those loans made underCityfs Block Grant program and shall continue to be responsible for the administration of the Reuse Program. ; i 4 LOAN MANAGEMENT SERVICES TO BE PERFORMED BY CONTRACTOR4. A.Loan Management Services will include marketing,screening,and packaging of loans;credit and gap financing analysis;and servicing-related functions such as appropriate filings associated with disbursement of loan fundsT and collections.In all cases.Contractor shall comply with all requirements of the U.S.Department of Housing and Urban Development. The services as shall commence upon execution of this Agreement and shall conclude on the CDBG closure date,or upon all grant conditions being fulfilled,whichever is sooner. B.Contractor shall have the sole authority and responsibility for making loans,obtaining adequate security,collecting payments and,when determined necessary,foreclosing on defaulted obligations.For purposes of monitoring the loan activity and loan portfolio performance.Contractor shall,upon request of City,provide loan information on loans made, including the type of business,the purpose of the loan,and the classification of eligible projects and activities. < J: i COMPENSATION5.i i>A.Grant Administration.Loan Management and Reuse Program Services.Contractor shall be compensated by City at the hourly billable rate approved by City,forservices rendered to City for Loan Administration and Reuse program services of this Agreement.In no event shall City's liability to Contractor for such administrativeservices exceed twenty (20) percent of the total interest,fees and principal payments received during a twelve month period.Billing rates are set forth in Attachment A attached hereto and incorporated herein reference for general administration,UNLESS modified in accordance with Section 12. Payment to the Contractor will be contingent upon receipt of funds designated for that purpose. B.Compensation for loan administration and Reuse program due under this Agreement $hal!be payable by City within 30 days after Contractor submits an invoice for services. 1J l i \2> ’i AUscadcTOil^mt, —i lAld I&SZ'YIOOZKWU :S;EQ SZIZ -'96ed r _j909019VSOB:woj-| W ,pMMM//:aWM 4.S.A UOjJBLUJOp!3J0W JOd J0AJ0S XBJ JG^BUJXVd IdO Aq P0AI0O0J SBM XBJ.siqi TERMINATION-6, This x\greement may be terminated by either party'upon thirty (30)days prior written notice. Upon termination,Contractor shall be compensated for all sendees rendered in conformance with this agreement up to the date of termination. INDEPENDENT CONTACTOR:7. A.No relationship of employer and employee is created by this agreement,it being understood that Contractor will act hereunder as an independent contractor and that the officers, employees,and agents of the Contractor shall not have any claim under this Agreement against City for vacation pay,sick leave,retirement benefits,social security,workers compensation,disability,unemployment insurance benefits,or employee benefits of any kind;the parties acknowledge and understand that Contractor is a separate entity from City and that the officers,employees,and agents of Contractor in the performance of this agreement shall act in a independent capacity and not as officers,employees,or agents of City. B.Contractor shall be responsible to pay ail required taxes and obligations and benefits of every' kind including social security and withholding taxes and unemployment insurance in connection with all services rendered pursuant to this Agreement.Contractor shall indemnify and hold City harmless of any and all liability which City may incur to the federal or state governments as a consequence of this Agreement C.Contractor,by virtue of this Agreement,has no authority to bind or incur any obligation on. behalf of City. INDEMNIFICATION:8. Contractor shall indemnify,defend,and hold harmless City and its officers,employees,and agents against all liabilities,claims,demands,damages,and costs (including attorney's fees and litigation costs)that arise in any way from Contractor’s acts or omissions while performing under this agreement.Contractor's obligations under this section cover but are not limited to liabilities, claims,demands,and costs arising from injury to or death of any persons (including City’s officers,employees,and agents)and from damage to or destruction of any property (including City’s real and personal property). WORKERS'COMPENSATION:9. Contactor shall provide worker’s compensation insurance coverage,m legally required amount, forall Contractor employees utilized m providing work and services pursuant to this Agreement. Contractor acknowledges its obligations and responsibilities to its employees under the California Labor Code and warrants that Contractor will comply during the time of this Agreement with all provisions of the California LaborCode with regard to its employees.Contractor,at the time of execution of this Agreement,will provide City with evidence of the required Worker's Compensation insurance coverage. 10.GOVERNING LAW: This Agreement shall be governed by the laws of the State of California, 3 Awscaderoagmt. _._i /—\lAJd 10-6Z-5 Z003/S1714 ^eQ £SZIZ -9Bej -J909019V909:WOJ-I W00'!JDMMM//:d^L|:}\S\A U0j)BlUJ0J.Uj 0JOUJ JOj J0AJ0S xe^J0>|BLUXVd IdO P©A|0O0J SBM XBJ.siqi NOTICE;II. Whenever notice to a party is required by this Contract,it shall be deemed given when deposited with proper addressand postage in the U.S.Mail or when personally delivered as follows: Contractor: Economic Vitality Corporation of San Luis Obispo P.O,Box 5257 San Luis Obispo,CA 93401 City: City of Atascadero 6500 Palma Avenue Atascadero,CA 93422-4299 COMPLETE AGREEMENT:AMENDMENT:12. This Agreement together with exhibits attached thereto,expresses the understandings of the parties concerning all matters covered and supersedes all prior negotiations,representations,or Agreements,either written or oral.No additions to,or alterations of the terms of this contract, whether by written or verbal understanding of lire parties,their officers,agents or employees,shall 'be Valid u'nicss'mtide'in-dic-lbrii'rof a wn-tten amendment-c-f this-contract and formally approved by the parties. Any and all existing statements or agreements,whether oral or written,or renewals thereof, between the parties hereto,covering the same subject matter,are hereby canceled and superseded by tliis Agreement and such prior agreements shall have no further force or effect. mIPLICATE ORIGINALS:13, This agreement may be executed in one or more duplicate originals bearing the original signature of both parties and when so executed any such duplicate original shall be admissible as proof of the existence and terms of the Agreement of the parties. TERM OF CONTRACT:14, The effective date of this Contract shall Contract shall terminateFc-Lma.<Y f£I^ft Contract will be automatically renewed on an annual basis for one (1)year periods unless cither parry gives notice of tenniitarforr&s-delineated-In Section 5 of this Agreement. on IN WITNESS WHEREOF.CITY AND CONTRACTOR have executed this Agreement on the day and year written below. THE ECONOMIC VITALITY CORPORATION OF SAN LUIS OBISPO COUNTY SJXL /I\f -c 1residcnt/CEO DateGregg06od CITY OF ATASCADERO Andrew Takaia*City Manager Date 4 Atusciicteroagmt. /\JT -IlAJdZ0;63:S Z003/C U/U U :^BQ 93/17*5*6 9090 U9t7 908 :WOJJ