HomeMy WebLinkAboutMINUTES - 07222008 - C.66 F..L Contra
Costa
TO: BOARD OF SUPERVISORS = County
FROM: Dennis M. Barry, AICP, Interim Director c.ouN
Department of Conservation and Development
DATE: July 22, 2008 .
SUBJECT: CONSULTANT SERVICES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT
SMALL BUSINESS / MICRO-ENTERPRISE REVOLVING LOAN PROGRAM
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION
APPROVE and AUTHORIZE the Deputy Director-Redevelopment, or designee, to execute a
contract amendment with Urban-Financial Services Group, LLC., effective July 1, 2008 to
extend the term from July 1, 2008 through June 30, 2009 and increase the payment limit by
$40,000 to a new payment limit of $135,500 to continue to provide consulting services for
managing and. administering the Community Development Block Grant (CDBG) Small
Business / Microenterprise Revolving Loan program.
FISCAL IMPACT
None, 100% U.S. Department of Housing and Urban Development funds.
CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA NUMBER
Community Development Block Grant (CDBG) Program — 14.218
BACKGROUND /REASONS FOR RECOMMENDATIONS
In December 2005, the Community Development Department issued a Request for Proposals
(RFP) to provide consultant services for the CDBG Small Business/Micro-enterprise Loan
Program (Program) for a period from January 1, 2006 through June 30, 2007 (18 months).
Urban Financial Services Group (UFSG) was the successful bidder and has been providing
CONTINUED ON ATTACHMENT: _X_YES SIGNATURE:
_X—RECOMMENDATION OF COUNTY ADMINISTRAT REC MENDATION O BOARD
COMMITTEE APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPR6VED AS RECOMWENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
--f UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Source: Bob Calkins, CDBG Program Manager
(925) 335-7220
ATTESTED � 'z2
Orig. Dept. Community Development (CDBG) JOHN CULLEN, ClLtOK OF
cc: County Administrator THE BOARD OF SUPERVISORS
County Counsel AND COUNTY ADMINISTRATOR
Auditor-Controller
BY
DEPUTY
consultant services including program marketing, technical assistance to prospective
applicants, loan application analysis and processing, and compliance monitoring. In June
2007, the contract with UFSG was extended to June 30, 2008 and the contract amount
increased by $43,500. If approved, this will be the second extension of the contract.
The Program is directed primarily to very low- and low-income micro-enterprises, or small
businesses for the purposes of job creation, retention, and/or attraction. The Program has
been in existence since July 2000, and has provided loans to 20 businesses. As a result of
these loans, a total of 50 new jobs have been created or retained.
It is recommended that the County extend the current contract with Urban Financial
Services Group for an additional year. The contract will run through June 30, 2009 and be
paid for with CDBG funds.
Contra Costa County CONTRACT AMENDMENT/ Number 47028 Copy
Standard Form L-9 EXTENSION AGREEMENT Fund/Org# 1595
Revised 2002 (Purchase of Services- Long Form) Account# 2310
Other#
1. Identification of Contract to be Amended.
Number: 47028
Effective Date: January l; 2006
Department: Community Development Department
Subject: Manage Contra Costa County Community Development Block Grant Small
Business/Microenterprise Loan Program
2. Parties. The County of Contra Costa,California(County),for its Department named above,and the following
named Contractor mutually agree and promise as follows:
Contractor: Urban Financial Services Group
Capacity: LLC
Address: PO Box 23527 Pleasant Hill, California 94523
3. Amendment Date. The effective date of this Amendment/Extension Agreement is June 30, 2008.
4. Amendment Specifications. The Contract identified above is hereby amended as set forth in the"Amendment
Specifications" attached hereto which are incorporated herein by reference..
5. Extension of Term. The term'of the above described Contract between the parties hereto is hereby extended
from June 30, 2008 to June 30, 201)9, unless sooner terminated as provided in said contract.
6. Payment Limit Increase. The payment limit of the above described Contract between the parties hereto is
hereby increased by$40,000.00, from $95,500.00 to a new total Contract Payment Limit of$135,500.00.
7. Signatures. These signatures attest the parties' agreement hereto:
COUN'T'Y'OF CONTRA COSTA CALIFORNIA
BOARD OF SUPERVISORS ATTEST: Clerk of the Board of Supervisors
BY y
B C—'— VLk–t
Cha' man/Designee Deputy
CONTRACTOR
Name of business entity Name of business entity
By By
(Signature of individual or officer) (Signature of individual or officer)
(Print name and title A, if applicable) (Print name and title B; if applicable)
Note to Contractor
;For Corporations(profit or nonprofit),the contract must be signed by two officers. Signature A must be that of the president or vice-
president and Signature B must be that of the secretary or assistant secretary(Civil Code Section 1190 and Corporations Code Section 313).All signatures
must be acknowledged as set forth on Form L-z.
L-9
Cuntra Costa County APPROVALS/ACKNOWLEDGMENT Number
Standard Form L-2 (Purchase of Services -Long Form)
Revised 2002
APPROVALS
RECOMMENDED BY DEPARTMENT FORM APPROVED
COUNTY COUNSEL
BY:
By: a \
Designee Deputy
APPROVED: COUNTY ADMINISTRATOR
By:
Designee
ACKNOWLEDGMENT
STATE OF CALIFORNIA )
ss.
COUNTY OF CONTRA COSTA )
On ; before me,.
insert name and title of the officer), personally appeared
personally known to me (or.proved to me on the basis
of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.
WITNESS MY HAND .AND OFFICIAL SEAL.
(Seal)
Signature
ACKNOWLEDGMENT(by Corporation,Partnership,or Individual)
(Civil Code§1189)
L-2 ( Page 1 of 1)
SERVICEPLAN
July 1, 2008 —June 30, 2009
URBAN FINANCIAL SERVICES GROUP
AMENDMENT SPECIFICATIONS
MANAGE CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT
BLOCK GRANT SMALL. BUSINESS/MICROENTERPRISE LOAN PROGRAM
The Service Plan attached to the Contract Amendment/Extension Agreement effective on
April 1, 2007, is hereby amended to include the following Service Plan for services and
payments during the period of July 1, 2008 through June 30, 2009:
The Contractor will continue to provide ' consulting services for managing and
administering the Program consistent with Federal regulation (24 CFR 570 et. seq.) and
County policy under the direction of the CDBG Program Manager. Eligibility for the
program is limited to the Urban County which includes all cities and unincorporated
areas, except the Cities of Antioch, Concord, Pittsburg, Richmond and Walnut Creek.
DUTIES:
Contractor will be responsible for:
• Providing of technical assistance or referrals to potential applicants
• Preparing loan evaluations for review by the Program Loan Review Committee
• Monitoring loan performance
• Marketing of the Program to small businesses and microenterprises
• Preparing and submitting monthly reports to the CDBG Program Manager
Technical Assistance — Contractor shall provide technical assistance to 10-15 qualified
applicants in order to assist them in qualifying for.a loan through the Program or from a
conventional lender. Technical assistance is limited to screening of potential applicants
for suitability in terms of the potential to meet low/mod income requirements, or job
creation or retention criteria, evaluation of loan readiness, and referral to. other programs
or banks for additional assistance.
Loan Processing — Contractor shall submit a minimum of 10 loan applications to.the
Loan Review . Committee for consideration. Contractor shall review and analyze
applicant financial data, evaluate the applicant's potential to meet financial requirements
of the Program including HUD/County underwriting and evaluation criteria, determine
the applicant's ability to meet requirements of CDBG program, ensure the proposal is
compliant with City or County land use ordinances and business licensing requirement,
and submit analysis and recommendations for,funding to the Loan Committee for review
and approval. If approved, the Contractor shall prepare loan documents, complete loan
package, and close the loan.
Loan Servicing/Compliance Monitoring — Contractor shall provide on-going technical
assistance/advisory services to all loan recipients. Contractor shall implement appropriate
monitoring procedures, including site visits, periodic phone calls, etc., to ensure
compliance with loan conditions and to help business owners hone skills and pursue
business strategies that both increase their profitability and.create new jobs.
Marketing — The Program. shall be marketed primarily to low-and moderate-income
microenterprises and/or small businesses for the purpose of job creation, retention, and/or
attraction. In addition, the Contractor will develop and sustain working relationships
with conventional lender(s) on behalf of the County -in order to foster referrals to the
Program and to develop financial leveraging strategies. Beginning in October, 2008,
Contractor will prepare a quarterly marketing plan and submit it to the CDBG Program
Manager for approval.
Reporting Requirements — Beginning in October, 2008, Contractor shall provide
written quarterly reports to the CDBG Program Manager. These reports should contain
information on the number of businesses provided technical assistance and/or referrals,
type of assistance provided to applicants for traditional bank loans and outcome of the
loan request, the status. of loans of all current loans including compliance with loan
conditions such as low- and moderate- income hiring, etc., and any other information that
describes the successes the Program-in general or individual loan recipients.
Miscellaneous — Contractor shall explore the possibility of partnering with the Small
Business Development Center (SBDC) to help expand SBDC's New Venture Training
Program to include additional financial technical assistance.sessions to participants as a
way to increase the number of New Venture Training graduates that are ready to apply
for a loan through the County's Small Business/Microenterprise Loan Program. Any
proposal to provide this additional assistance shall be approved by the CDBG Program
Manager.
PAYMENT:
Submission of Demands for Reimbursement — Contractor shall submit Demands for
reimbursement on a monthly basis (by the 25th of the month) with appropriate
documentation. Format for reporting shall be prescribed by the County.
Compensation — The payment limit on this contract is increased by $40,000 to a new
total payment limit of$135,500, including $2,000 for reimbursable costs. The additional
sum of up to $40,000 is payable solely for services provided during the period of July 1,
2008 through June 30, 2009. The Contractor shall be compensated at the following rates:
Senior Principal _ $90/hour
Principal - $75/hour
Associates - $60/hour
Clerical - $35/hour