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HomeMy WebLinkAboutReso 1981-10483 /.. ,. RESOLUTION NO. 10483 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH THE SAN DIEGO LOCAL DEVELOPMENT CORPORATION FOR THE PROVISION OF ECONOMIC DEVELOPMENT SERVICES The City Council of the City of Chula vista does hereby authorize as follows: WHEREAS, the City Council is interested in promoting economic development programs which assist local businesses and businesses wishing to locate in Chula Vista; and, WHEREAS, the San Diego Local Development Corporation was incorporated in 1979 for the purpose of providing economic devel- opment services and assistance to businesses in San Diego County; and, WHEREAS, the San Diego Local Development Corporation is certified by the Small Business Administration to underwrite SBA Section 7A, 502 and 503 loans and loan guarantees for small businesses; and, WHEREAS, the services of the San Diego Local Development Corporation may be made available to businesses located in or wishing to locate in Chula Vista by request of the City Council; and, WHEREAS, fees for services of the San Diego Local Development Corporation will be paid by businesses receiving services, with the City reserving the option to subsidize fees if considered necessary. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves an agreement with the San Diego Local Development Corporation for the provision of economic development services in the City, excluding the Town Centre I redevelopment area, and authorizes the Mayor to sign said agreement attached hereto as thouqh fully set forth herein. Presented by ,..."...""'" C1.ty Attorney George (ol{~3 ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHlJ..A VISTA, CALIFORNIA, this 19'K 1 , by the following vote, t01t: 2nd day of June AYES: CCUlCilmen Scott, Hyde, Cox, McCandliss NAYES: Councilmen None ABSTAIN: CoI.rlcilmen None ABSENT: Councilmen Gillow 0~ --rIM Mayor of the City of ChuIa Visto ATTEST ~;,,/ 4.zo?!~~ ~ City Clerk STATE OF CALFORNlA ) COUNTY OF SAN DIEGO ) 55. CITY OF CHUlA VISTA ) I, JENNE M. FULASZ, Cft4C, CITY CLERK of the City of Chulo Visto, California, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 10483 ,and that the same has not been amended or repealed. DATED City Clerk ( seal) CC-660 /oJ.. ~ 3 A G R E E MEN T THIS AGREEMENT is made between the CITY OF CHULA VISTA, a municipal corporation, herein called "City," and SAN DIEGO COUNTY LOCAL DEVELOPMENT CORPORATION, herein called "Contractor." R E C I TAL S A. The Contractor is engaged in the rendering of certain economic development services to small businesses in San Diego County including the processing of Small Business Administration loans. B. City desires to engage Contractor to render these economic development services within the boundaries of the City of Chula Vista. NOW, THEREFORE, in consideration of the recitals and the mutual obliga- tions of the parties as herein expressed, City and Contractor agree as follows: Section 1. Definitions As used in this agreement: A. "City" means the Council of the City of Chul a Vi sta acti ng through its chief administrative officer, the City Manager or his/her designee. B. "Contract Administrator" means the Director of the Community Development Department or designee. C. "Contractor" means the San Diego County Local Development Corporation. D. "Community Development" means the Community Development Department of the City of Chula Vista. E. .Subcontractor" means any entity, other than City, that furnishes supplies or services to contractor relevant to this agreement (other than standard commercial supplies, office space or printing services). tf- 10 t/r3 Section 2. Scope of Services Contractor agrees to promot~ encourage, develop financing packages including Small Business Administration (SBA) loans for businesses located in or wishing to locate in the City. SBA loans programs to be utilized include, but are not limited to, the 7A and 503 programs. Contractor hereby agrees to perform said services according to all the terms and conditions of this Agreement. Eligibility of businesses and eligible uses of loans shall be governed by the Local Development Corporation regulations in effect at the time. Changes in eligibility due to changing LDC regulations may be approved administratively by the Community Development Department upon written request of the Contractor. Section 3. Geographical Scope of Service Services provided by Contractor under this Agreement shall apply to the entire City of Chula Vista except that area described as the Town Centre I Redevelopment Area and shown on Exhibit A. Section 4. Monitoring and Evaluations The City, in cooperation with the Contractor, shall evaluate products, services, and performance of the Contractor. Information pertinent to City evaluation shall be made accessible to the Community Development Depart~nt staff as required by this Agreement. Contractor agrees to allow authorized City employees or consultants hired by City to enter premises and inspect its books, client files, payroll records, accounting documents and all other pertinent records during business hours for monitoring and evaluation purposes. Section 5. Reporting Requirements Contractor shall maintain accurate books and records of all services, operations and expendituresrelated to this Agreement and submit periodic performance reports as required by the City. -2~ {O~~3 Section 6. Compensation For each SBA 503 loan, Contractor shall be compensated on a time and materials basis, with a maximum of I~% of the amount of the loan, and a minimum amount of $500. The minimum shall be assessed if the loan is not funded, and is payable upon the initiation of work by Contractor on the loan. For each SBA 7A loan, Contractor shall be compensated on a time and materials basis, with a maximum of 1.5% and a minimum of $ 500.00 . The minimum shall be assessed if the loan is not funded; and is payable upon the initiation of work by Contractor on the loan. For all SBA loans, the above compensation shall be collected from the loan applicants. However, the City may, at its option, elect to pay such compensation for any class of loans, upon notification to the Contractor. Section 7. Independent Contractor Contractor is, for all purposes arising out of this Agreement, an independent contractor, and no employee of Contractor is, for any purpose arising out of this Agreement, an employee of City. All subcontractors and clients of Contractor shall be notified of Contractor's relationship to City. Section B. Contract Modifications and Amendments Subject to applicable Federal and State law, City may amend or otherwise modify this Agreement to the extent that the terms and requirements conform to those approved by the Council and remain within the intent of the Community Development Block Grant regulations. Such modifications, to include changes in Agency physical location, reduction or increase in contract service standards, and elimination or addition of types of service, may be made upon the written approval of the Director, Community Development Department. -3- [OLf Z 3 No addition to or alteration of the terms of this Agreement, nor any verbal understanding of the parties shall be valid until made in the form of a written amendment to this Agreement with approval as specified above. Section 9. Subcontracts Contractor shall not execute or amend any subcontract concerning carrying out any of the provisions of this Agreement prior to written notification to theEi rector, Community Development Department. Contractor shall furni sh --Contract Administrator with copies of all subcontracts entered into by Contractor pursuant to this Agreement. Section 10. Product Endorsement Prohibited Contractor'shall adopt and follow a policy prohibiting endorsement of cOlTlTlercial products or a service. Implied or direct endorsement of commercial products for the purpose of advertising is prohibited. Section 11. Conflict of Interest and Nepotism A. Contractor shall not permit any of its employees or agents to engage in private referral or consulting services with respect to any clients of project, and Contractor shall not permit project employees or agents to refer project clients or persons seeking project assistance to any company, association or partnership in which an employee or agent of any person employed under project has a financial interest. B. No person shall hold a job while he/she or a member of his/her immediate family serves on a board or committee if that board or committee has authority to order personnel actions affecting his/her job. No person shall hold a job over which a member of his immediate family exercises super- visory authority. A member of an immediate family shall include an of the following persons: either spouse and their children, mother, father, sister, brother and in-laws of any of those persons listed. -4- r 04'63 Section 12. Retention of Records Contractor shall retain all records and supporting documentation applicable to the contract wi th the City for a period of three (3) years after the audit of the program by the City. All such records and supporting documentation shall be made readily available, upon request, for inspection or audit by representatives of the City. In the event an Operating Agency goes out of existence, it must turn over its records relating to the program to the City to be retained for the required period. Section 13. Audits and Inspections The City Auditor and Comptroller's staff or an independent public accountant retained by the City may make periodic audits of the Contractor. Contractor shall agree to make available all records in respect to this Agree- ment to the City, or its representatives, as necessary. In addition, repre- sentatives of the City shall be permitted to audit, examine, and make excerpts or transcripts from such materials, payrolls, personnel records, and other such records related to operations under this Agreement. Section 14. Disclosure of Confidential Information The City and Contractor agree to maintain the confidentiality of any information regarding applicants, project participants, or their immediate families which may be obtained through application forms, interviews, tests, reports from public agencies or counselors, or any other source. Contractor and City further agree that such information shall be divulged as necessary for purposes related to the performance or evaluation of the Agreement and then only to persons assigned such responsibilities. Section 15. When Rights and Remedies Not Waived In no event shall any payment by the City hereunder constitute or be construed to be a waiver by the City of any breach of conditions or any I bl../g3 default which may then exist on the part of the Contractor. -5- Section 16. Severability of Provisions If any provisions of this Agreement are held invalid, the remainder of this Agreement shall not be affected thereby if such remainder would then continue to conform to the terms and requirements of applicable law. Section 17. Assignment Contractor shall not assign this Agrefment or any monies due or to become due hereunder except as specified in the terms of this Agreement, without having first obtained the written consent of the Contract Atiministrator. Section 18. City Not Obligated to Third Parties The City will not be obligated or liable hereunder to any party other than Contractor. Section 19. Political Activlty Prohibited None of the funds, materials, property or services provided directly or indirectly under this Agreement shall be used in the performance of this Agree- ment for any partisan political activity or to further the election or defeat of any candidate for public office, nor may any of the funds provided under this Agreement be used for publicity or propaganda purposes designed to support or defeat legislation pending before the Congress, State Legislature or the City Counci 1 . Section 20. Hold Harmless Dtf~3 Contractor agrees to indemnify and save City and its agents and employees harmless from any and all liability claims, damages, or injuries to any person including injury to project employees, and all expenses of investigating and defending against same: (a) arising from or connected with performance of or failure to perform the work or other obligations of this Agreement; (b) caused or claimed to be caused by the independent acts of Contractor, his/her agents or employees, or the concurrent acts of project, City or their agents or emp 1 oyees. -6- Section 21. Termination of Contract Either City or Contractor may terminate this Agreement upon thirty (30) days written notice of the other party; however, City may terminate this Agreement at any time if Contractor fails to meet or fulfill its obligations as set forth in this Agreement. In the event of termination by either party, City's liability hereunder shall be limited to compensation for work or services performed prior to the effective date of termination. Section 22. Period of Performance The services of Contractor as set forth herein shall commence on May 15, 1981 and shall terminate on written notification unless otherwise terminated as provided herein, and except as to' the final report. IN WITNESS WHEREOF, this Agreement is executed by the City of Chula Vista pursuant to Resolution No. 10483 , authorizing such execution, and by Contractor. Dated this 15th day of May , 1981. THE CITY OF CHULA VISTA By GJ~<~ SAN DIEGO COUNTY LOCAL DEVELOPMENT -7- 104<(; 3>