HomeMy Public PortalAboutA 1987-08-18 LLDCLYNWOOD LOCAL DEVELOPMENT COMPANY
II
SPECIAL MEETING
AUGUST 18, 198
3:00 P.M.
A G E N D A
WILLIAM KOLITZ
CHAIRMAN
JIM MORTON
VICE - CHAIRMAN
HARRY PRINS
MEMBER
CITY STAFF
DIRECTOR OF
COMMUNITY DEVELOPMENT
VICENTE L. MAS
OPENING CEREMONIES:
A. CALL TO ORDER
B. FLAG SALUTE
C. ROLL CALL
D. CERTIFICATION OF AGENDA POSTING
E. APPROVAL OF MINUTES: None
F. ITEMS FOR DISCUSSION
1. 1987 -88 CDBG Grant Award
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CITY OF LYN'.aOOO I
CITY CLER L: C" P
AUG 14 1987
AM PM
7�BAIN11021112Oil 50
IZ
BEIINARD H. LAKE
SECRETARY- TREASURER
DR. BERNARD STEUBER
MEMBER
HOUSING AND COMMUNITY
DEVELOPMENT COORDINATOR
ARTHUR N. WALLER
Comments:
On July 7, 1987, the Lynwood City Council approved the
award of Community Development Block Grant (CDBG) funds in
the amount of $100,000 to the Lynwood Local Development
Company. The attached agreement must be executed by the
Chairman of the Board of Directors.
•
LLDC Agenda
Page #2
0
2. Establishment of Operating Budget for Fiscal Year 1987 -88.
Comments:
The City of Lynwood has absorbed operating costs of the
Local Development Company for several years (i.e. postage,
supplies, staff salaries, etc.) Funds generated from
interest on the deposit of grant funds could be used to
establish an operating budget for fiscal year 1987 -88.
3. Request for Business Development Assistance Loan -
Clyde Smith dba Ornamental Plaster and Molding
- Presentation by Mr. Clyde Smith
(Adjourn to Closed Session)
G. ITEMS FOR CONSIDERATION
1. A RESOLUTION OF THE LYNWOOD LOCAL DEVELOPMENT COMPANY
APPROVING A AGREEMENT WITH H
CORPORATION OF LOSANGELESCOUNTYFORETWENTYC DEVELOPMENT
FIVE THOUSAND
- DOLLARS.
H. STAFF REPORTS
I. BOARD ORALS
J. PUBLIC ORALS
K. ADJOURNMENT
0 9
LYNWOOD LOCAL DEVELOPMENT COMPANY
CONTRACT WITH
CITY OF LYNWOOD
This Contract is made and entered into this
day of July
1987, by and between the City of Lynwood, hereinafnon- palled
"City" and the Lynwood Local Development Company, fit
California corporation, hereinafter called "LLDC ".
1. SCOPE OF SERVICE. The program idescribed e hereto Exhibit
and
"Project Description , which
incorporated herein by reference, shall be implemented.
2. TIME OF PERFORMANCE. Services are to commence as of the
date first indicated above through June 30, 1988.
3. COMPENSATION AND METHOD OF PAYMENT. The City shall grant
1987- 88DCOman advance el the am ck Grant 100 DBG) funds, the
4. CONTRACT ADMINISTRATION. The Housing and Community
Development Coordinator, hereinafter called the Project
Director, or his /her designee, shall have full authority to
act for City in the administration of this Contract
consistent with the provisions contained herein.
5. PROGRAM EVALUATION AND REVIEW. All data necessary for the
City's review and monitoring process shall This wade
accessible to their designated personnel.
include a review of performance from records and interviews
with program participants as required by the City.
6. COMPLIANCE WITH LAWS. All parties agree to be bound by
applicable Federal, State and local laws, ordinances,
regulations and directives as they pertain to the
performance of this Contract.
7. REVENUE DISCLOSURE REQUIREMENT. LLDC shall make available
for inspection and audit to City's representatives, upon
request, at any time during the duration of this Contract
and during the period of five (5) years thereafter, all of
its books and records relating to the operation by it of
each project or business activity, including the project(s)
under this Contract, which is funded in whole or in part
with Federal or State grant monies, whether or not such
monies are received through City. All such books and
records shall be maintained by LLDC at a location in Los
Angeles County or other location that may be approved by
City specifically cited in the "Project Description "
Exhibit A, to this Contract.
8. INDEMNIFICATION. LLDC shall indemnify, defend, and hold
harmless City, their officers, agents and employees from
and against any loss, liability, or expense, including
defense costs and legal fees, and b claims for d bodily
nature whatsoever, including,
injury, death, personal injury or property damage that
arise or result from the wrongful or negligent
acts or
or employees
omissions of the allegedly or or
agents,
omissions of LLDC its officers,
including any worker's Compensation suits, liability, or
ted with services performed
expense arising from or connec
0 9
by LLDC or on behalf of LLDC by any other person pursuant
to the Contract. The City and any businesses p rticipatind
in the LLDC program shall indemnify, defend
harmless LLDC, their officers, agents and employees from
and against any loss, liability, or expense, including
defense whatsoever, including, but not limited to bodily
injury, death, personal injury or property damage that
arise or result from wrongful or negligent acts or
omissions of LLDC, its officers, agents or employees,
including any Workers Compensation suits, liability, or
expense arising from or connected with services performed
by LLDC or on behalf of LLDC by any other person pursuant
to this Contract.
9. INSURANCE. Without limiting LLDC's indemnification of the
City, LLDC shall provide and maintain at its own expense
during the term of this Contract a program of insurance to
include professional liability insurance coverage in the
amount of one - hundred thousand dollars ($100,000).
10. TIME OF PERFORMANCE MODIFICATIONS. The City Project
Director or his /her designee, may grant time of performance
modifications to this Contract when such modifications:
a. In aggregate do not exceed twelve (12) calendar months;
b. Are specifically requested by LLDC;
C. Will not change the project goals or scope of services;
d. Are in the best interest of the City and LLDC in
performing the scope of services under this Contract;
and
e. Do not alter the amount of compensation under this
Contract.
11. CHANGES. The City or the LLDC may, from time to time,
request changes in the scope of services to be performed.
Such changes, as may be agreed upon, shall be incorporated
in written amendments to this Contract.
12. TERMINATION. This Contract may be terminated by either
party by giving written notice at least five (5) days prior
to the effective termimation date stated in the written
notice:
The City, without cause, may terminate the Contract upon thirty
(30) days written notice. Any undisbursed funds will be
returned to the City.
i
13. NOTICES. All notices shall be served in writing. The
notices to the LLDC shall be sent to the following address:
11330 Bullis Road, Lynwood, CA 90262
Notices, reports and statements to the City Hall shall be
delivered or sent to:
11330 Bullis Road, Lynwood, CA 90262
14. JOINT FUNDING. The City shall not pay for any services
provided by the LLDC which are funded by other sources. All
restrictions and /or requirements provided for in this
Contract relative to accounting, budgeting and reporting
apply to the to total program regardless of funding
sources.
15. ASSIGNMENT. This Contract is not assignable by LLDC
without the express written consent of the City. work on
specific client projects can be sub- contracted to private
sector consultants approved by the LLDC as a part of its
resource network. The LLDC will be solely responsible for
the work performed by such sub - contractor.
16. CONFLICT OF INTEREST. The LLDC, its agents and employees
shall comply with all applicable Federal, State and County
laws and regulations governing conflict of interest. To
this end, the LLDC will make available to its agen and
employees copies of all applicable Federal,
County laws and regulations governing conflict of
interest. LLDC shall furnish to the City, prior to
execution of this Contract, a written list of all current
or proposed subgrantees /subcontractors, venors or personal
service providers, which will receive $10,000 or more
during the term of this Contract. Such a list shall
include the names, addresses, telephone numbers and
identification of principal party(ies) and a description of
services to be provided.
17. DISCRIMINATION. No person shall, on the grounds of race,
sex, creed, color, religion, or national origin
excluded from participation in, be refused the benefits
any
of, or otherwise be subjected to dcrimina by this
activities, programs or employment PP
Contract
18. AMENDMENTS: VARIATIONS. This writing with attachments,
embodies the whole of the Contract of the parties hereto.
There are no oral agreements not contained herein. Except
as herein provided, any addition or variation of the terms
of this Contract shall not be valid unless made in the form
of a written amendment of this Contract formally approved
and executed by both parties.
0
E
IN WITNESS WHEREOF, the Governing bodies of the parties
hereto have authorized this Contract and have caused said Contract
to be executed by their respective chief executives officers and
attested by the executive officers and clerk thereof as of the
day, month and year first above written.
CITY OF LYNWOOD
BY:
Company
11330 Bullis Road
Lynwood, Ca. 90262
OPERATING AGENCY
Lynwood Local Development
BY:
TITLE
DATE:
APPROVED AS TO FORM:
BY:
City Attorney
TITLE:
DATE:
DATE:
C'
EXHIBIT A
SCOPE OF WORK
BUSINESS DEVELOPMENT ASSISTANCE PROGRAM
GENERAL GUIDELINES
z
The Business Development Assistance Program (BDA) is a financial
assistance program administered by the Lynwood Local Development
Company (LLDC).
PROGRAM BACKGROUND
The Business Development Assistance Program has been adopted by
the LLDC to provide financial assistance to businesses wishing to
expand in or relocate to the City of Lynwood.
Primary funding for the BDA Program is from the City of Lynwood's
Community Development Block Grant (CDBG) Program. Although the
LLDC anticipates continuing support from CDBG funds, it shall
seek to expand its financial resources.
ELIGIBILITY REQUIREMENTS
Program assistance will be provided to those businesses -which
provide evidence of need. Preferential treatment will be given
to businesses which will provide additional jobs to the
community.
DESCRIPTION OF ASSISTANCE
The BDA Program can make available to qualified applicants below
market interest loans and grants, as described below:
LOANS:
The BDA Program provides three percent (3%) loans with
amortization not to exceed sever. (7) years. All loan requests
must be submitted to the LLDC which will be submitted to an
approved lender.
1. Maximum Loan Amount
The maximum loan amount shall be limited to $10,000,
including the amount necessary to cover the cost of
equipment, trade fixtures and inventory or trade stock.
Page Two
2. Terms
Amortization of the loan shall not exceed seven (7)
years.
3. Loan Costs
The bank may charge to the loan the cost of loan
origination fees.
GRANTS
The grant component is designed to provide assistance to local
businesses to cover the cost of equipment, trade fixtures and
inventory or trade stock. These funds shall be used only in
those cases where the loan proceeds are not sufficient to cover
the cost of the request for assistance. As such, the grant
should be considered as "gap financing" only.
1. Maximum Grant Amount
The maximum grant amount per participant shall be
$2,500.
2. Documentation
To qualify for this grant, a participant must provide
appropriate documentation of planned expenditures (such
as purchase orders or invoices), showing the use of
funds, estimate of costs, and name and address of vendor
or supplier.
ELIGIBLE EXPENDITURES
All costs directly attributable to the costs of equipment, trade
fixtures and inventory or trade stock are eligible, including
loan origination fees and any other costs associated with the
preparation of loan documents.
PROCESSING OF RE91EST5 FOR ASSISTANCE
Step 1: Application Submittal
Applicants must complete and submit a BDA Program
application form, a business development plan, a balance
sheet, profit and loss statements for the preceeding two
years, and an itemized list of needed equipment,
furniture, trade fixtures or trade stock to the LLDC
with approximate costs.
Page Three
7
Step 2: Staff Review and Determination of Eligibility
After submittal of the application, staff will review
the financial information to determine the applicant's
level of need and the estimates for reasonableness of
costs.
Step 3: Securing the Financing
After the application has been approved by staff, it
will be submitted to the LLDC for evaluation. The LLDC
will approve or deny the loan or grant request based on
its evaluation. The LLDC may also approve an amount
which is less than the amount requested.
Step 4: Obtaining Bid and vendor /Supplier Selection
Upon approval by the LLDC, staff will assist
participants in obtaining at least three (3) bids from
vendors /suppliers. Staff will then review bids for
costs and the participant will choose the lowest
reasonable bid.
Step 5: Participation Agreement
After the selection of a vendor /supplier, the
participant will execute an agreement with the LLDC and
the applicable loan documents.
Step 6: Disbursement of Loan and /or Grant Proceeds
Payments will be made directly to the selected and
approved vendor /supplier, not to the participant.* This
payment will occur upon verification of expenses
incurred, as evidenced by the participant's submission
of purchase orders, invoices, etc. ( *Amended August 27,
1986, to allow pre- approved loan proceeds to go to an
applicant as reimbursement of a pre- approved purchase.)
GENERAL PARTICIPATION RESPONSIBILITIES
All applicants who participate in the Business Development
Assistance (BDA) Program must abide by all Program rules and
regulations , which include those listed below:
o Applicant(s) must keep all appointments.
o Applicant(s) must allow at least three (3)
vendors /suppliers to submit bids.
0 Applicant(s) must select the lowest reasonable bid.
Page Four
o Applicant(s) must sign a LLDC Participation
Agreement prior to signing loan documents.
o Applicant(s) must present vendor /supplier
purchase orders, invoices, etc.
CONTRACT WITH ECONOMIC DEVELOPMENT CORP. (EDC)
PUN POSE
To provide goal It business counsel loll and flnanc I al
a sst at arses services to existing buslnessr.s through
public and private sector resources.
PIIOGRAM COMPONENTS
•there are two components available to Iota
Jurisdictions wirir.h call be utilized separately or
together. Those are:
111 'ranvr. Area Counsel in)_ (TAC): direr Led nl
g ang rap5 nrens wirlc lr li.e a hi9r ecou oho r c
priority (i.e., red evelopmeot, commercial ,I..j 1d ies`
: I
areas.) Services Include business plans t sUi r
analysis, accounting, marketing, operation
computer implementation and financial assistance
programs.
(2) CiUwide Financial Oft ions (C Ft 9 on a
citywide Tail to haolllry or ezp nnJ59 businesses with
capital scuds. Proy rams luclude SBA 504 and
loans, tax- exempt and taxable bond programs, p
control loans and others.
1.
PROGRAM IMPLEMENTATION
Thcre
impler
These
(1)
(2)
(3)
ill
are three basic actly it ies inv rents.
renting bath the TAC and CFO program
are:
marketing the program,
conducting client assessments and
prov id hill In -depth counseling or 10,141
packaging assistance.
COSTS /GOAI.S
All services are
provided at $50 /Lou[.
Cities can Is ur(:hasc
an amount of hours from
local
tire EDC and allocate
them according to
a
priorities. A typical
arrangement entails
City purrhnsing 500
hours for $25,000. The
breakdown of hours and
goals would bet
Activity I10UIS
$ Goals
I, Marketing
loans approval.
AC 40
$2,000 Program promotion
.'r
.CFO 40
$2,000 Program promotion
ll. Client Assessmen L /nasic
Counseling
120
$6 , 000 15 businesses
.TAC
.CFO 60
$7,000 10 businesses
ill. In -depth Counsel log /Loan Packaging
BENEFITS
The City lev stay es Its resources with State, County and
private sector resources In the Program to prov F,le
econmic Thls can become I r
known as [theeClty'rs , l omic Oevelupment
Program ".
R
240
$12,000
0 businesses
.TAC
.CFO
0
0 •
7 business::
Total
500
$25,000
25 businesses
• Fees
come from
Individual
loans approval.
BENEFITS
The City lev stay es Its resources with State, County and
private sector resources In the Program to prov F,le
econmic Thls can become I r
known as [theeClty'rs , l omic Oevelupment
Program ".
R
A RESOLUTION OF THE LYNWOOD LOCAL DEVELOPMENT
COMPANY AUTHORIZING AN AGREEMENT WITH THE
ECONOMIC DEVELOPMENT CORPORATION OF LOS ANGELES
COUNTY
WHEREAS, the Lynwood Local Development Company quality
desires to implement a program to provide affordable, q y
business counseling services and financial assistance to existing
businesses in the City of Lynwood, and
WHEREAS, 'the LLDC requires the assistance of a
qualified consultant to provide these services, and
Los
WHEREAS, the Economic Development Corporation of
ovide
Angeles County (EDC) represents that it is qualified to p
these services.
NOW, THEREFORE, the LLDC Board of Directors does
hereby resolve as follows:
SECTION 1. The LLDC shall enter into an agreement
with the EDC for an amount not to exceed $25,000.
SECTION 2. The Chairman of the Board of Directors and
Secretary- Treasurer are authorized to execute 3 copies of the
agreement.
PASSED, APPROVED, and ADOPTED this
day of
, 1987.
WILLIAM KOLITZ, CHAIRMAN
LYNWOOD LOCAL DEVELOPMENT CO.
ATTEST:
BERNARD LAKE, SECRETARY- TREASURER