HomeMy WebLinkAboutContracts & Agreements_202-2013_CCv0001.pdf MICROENTERPRISE ASSISTANCE PROGRAM (MAP) GRANT AGREEMENT
BY AND BETWEEN THE CITY OF REDLANDS AND
CITROGRAPH, LLC
,This Microenterprise Assistance Program("MAP")Grant Agreement("Agreement")is made
and entered into on this 1st day of October, 2013 ("Effective Date"), by and between the City of
Redlands, a California municipal corporation("City")and Citrograph,LLC(-Participant"). City and
Participant are sometimes individually referred to herein as a"Party"and,together,as the"Parties."
City and Participant enter into this Agreement with reference to the following facts ("Recitals").
RECITALS
A. Participant has applied for and has been awarded a Community Development Block
("CDBG")funded MAP grant("Grant")as set forth in this Agreement pursuant to 42 U.S.C. Section
5301 et seq. and federal CDBG regulations set forth at 24 CFR Part 570. Subsection 17 of Section
5305 of Title 42 of the United States Code expressly allows CDBG funds to be utilized to assist
private, for-profit entities to carry out economic development. City has detetinined that Participant
meets the qualifications of the CDBG regulations and Participant has agreed to comply therewith.
B. The Grant will be made by City in accordance with federal laws and regulations
governing the CDBG Program.
C. The purpose of this Agreement is to enable the start of a new or expansion of an
existing quality business in the City and to create employment opportunities at Citrograph Printing
Company, a printing and promotional product distribution business located at 113 E. State St.,
Redlands, CA 92373 (the "Project"), by providing MAP Grant assistance for the uses described in
Attachment "A" of this Agreement.
D. As a condition of the Grant, Participant commits to meeting the CDBG National
Objective of Benefiting Low- and Moderate-Income Persons through the creation of new jobs that
will primarily benefit low- to moderate-income persons.
E. Pursuant to Section 15301 (a) of the State's Guidelines implementing the California
Environmental Quality Act ("CEQA") set forth at Title 14 California Code of Regulations Section
15000 et seq., the Project is exempt from the requirements of CEQA (Section 21000 et seq. of the
Public Resources Code).
F. City completed its environmental review pursuant to the National Environmental
Policy Act (24 U.S.C. Section 4321 et seq.) and its implementing regulations ("NEPA"), and
determined that the Project is categorically exempt pursuant to 24 CFR 58.35(a)(3)(iii). City has
relied on such exemption for its compliance with NEPA.
NOW,THEREFORE,in consideration of the mutual covenants hereinafter set forth, and for
such other good and valuable consideration, the receipt of which is hereby acknowledged,the City of
Redlands and Citrograph, LLC, agree as follows:
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ARTICLE I
SUBJECT OF AGREEMENT
Section 1.01. Purpose of the Agreement. The purpose of this Agreement is to enable the
start of a new or expansion of an existing quality business in the City of Redlands which will create
new employment opportunities at the Citrograph Printing Company, located at 113 E. State St.,
Redlands, CA 92373 (the "Site"), by providing financial assistance for the uses described in
Attachment"A"of this Agreement. Employment obligations required under this Agreement are as
detailed within Attachment"B"— Employment Requirements, for new positions as detailed within
Exhibit 2—Job Generation Foi in, with low- and moderate-income outreach activities performed in
conformance with Exhibit 3 —Actions to Ensure First Consideration to Low and Moderate Income
Persons, and compliance with the provisions of Exhibit 4 - Roles to Ensure Low-to-Moderate
Income Benefit.
Section 1.02. The Site. The Site is that portion of the real property at 113 E. State St.,
Redlands, CA 92373, in which Participant is located and operates its business.
Section 1.03. Prohibition Against Change in Ownership Management and Control of
Participant. The qualifications and identity of Participant and Participant's business are of particular
concern to City. It is because of those qualifications and identity that City has entered into this
Agreement with Participant. No voluntary or involuntary successor in interest of Participant shall
acquire any rights or powers under this Agreement except as expressly set forth herein. Any change
in ownership, management and control shall be subject to the approval of City, but such approval
shall not be unreasonably withheld. Participant shall not assign all or any part of this Agreement
without the prior written approval of City, which written approval shall not be unreasonably
withheld.
ARTICLE II
GRANT TERMS
Section 2.01. The Grant. City agrees to grant to Participant Twenty Five Thousand Dollars
($25,000.00) of CDBG funds, subject to the conditions and terms of this Agreement.
Section 2.02. Term of Agreement. The term of this Agreement shall commence upon its
Effective Date and remain in full force and effect through and including the date which is nine (9)
months following the Effective Date,or the full repayment of the Grant and meeting all jobs creation
requirements and other conditions of this Agreement, whichever occurs later, unless terminated
earlier pursuant to the terms of this Agreement. No expenditures may be incurred until this
Agreement has been fully executed. The Quarterly Performance Report submission obligations
detailed within Attachment "B" shall remain in place until all employment requirements under this
Agreement have been met by Participant, approved by City, and the minimum nine (9) month
retention period completed and approved by City.
Section 2.03. Conditions of Funding.
The obligation of City to disburse Grant proceeds under this Agreement is subject to the
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following conditions:
A. The Grant funds shall only be used for the reimbursement of eligible costs incurred to
purchase the items described in Attachment"A"of this Agreement. Participant shall maintain such
records as are necessary and convenient for City to verify that the use of the Grant is in accordance
with this section.
B. City, as a participant in the CDBG program funded by the United States Department
of Housing and Urban Development ("HUD"), requires that Participant comply with all standard
CDBG regulations. Participant shall employ new employees in accordance with the CDBG program
requirements as outlined in Attachment "B" and shall comply with the provisions of City's MAP
Guidelines which are included as Attachment "G" to this Agreement. In addition, Participant shall
provide copies of the DE9 and DE9C forms,the State of California Quarterly Wage and Withholding
Report, to City on a quarterly basis.
C. Participant shall obtain and provide to City a valid DUNS(Data Universal Numbering
System) number from Dun and Bradstreet, as required by the United States Office of Management
and Budget prior to entry into this Agreement.
D. Participant shall attend a minimum of three(3) City of Redlands/SCORE sponsored
small business educational workshops, or other City pre-approved business training workshops
sponsored by another organization, within nine(9)months of the Effective Date of this Agreement.
Section 2.04. Security. The performance of this Agreement shall be secured by a (1)
Uniform Commercial Code(UCC-1) security filing with the California Secretary of State under the
California Commercial Code executed by City, which secures the property identified in Attachment
"F" Grant of Security and (2) the Personal Guaranty of Participant's owner(s), included as
Attachment "C"to this Agreement.
Section 2.05. Default. The following circumstances are "Events of Default."
A. If representations, conditions or warranties made by Participant prove to be incorrect
in any material respect when made, or change such that the statements become incorrect, whether
voluntarily or involuntarily.
B. Participant fails to perform or observe any other term or condition contained in this
Agreement and any such failure remains unremedied for thirty (30) calendar days after receipt of
written notice from City.
C. Execution is levied against Citrograph, LLC or any suit is brought by lien creditors to
enforce a judgment against Citrograph, LLC or the site and shall continue unstayed for more than
thirty (30) consecutive calendar days.
D. Participant sells, transfers, leases or conveys Citrograph, LLC, or any part thereof,
without the express written consent of City, whether voluntarily or involuntarily.
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E. Participant ceases to operate the business at the Site.
F. The filing of a petition in bankruptcy by or against Participant or appointment of the
receiver or trustee for Participant,or an assignment by Participant for the benefit of creditors, or any
adjudication that Participant is insolvent by a court, and failure of Participant to cause such petition,
appointment or assignment to be removed or discharged within sixty(60)days from the date of such
adjudication.
G. Participant fails to create at least the minimum number of jobs required, as detailed
within Attachment "B" Exhibit "2," within a period of sixty days from the Effective Date of this
Agreement,and maintain the created jobs for a minimum period of nine(9)months from the date of
their respective creation.
H. Participant fails to attend the minimum required City of Redlands/SCORE sponsored
small business educational workshops, or other City pre-approved business training workshops
sponsored by another organization, within one year of the Effective Date of this Agreement.
Section 2.08. Cure. In the event of any Default under the terms of this Agreement,the non-
defaulting Party shall give written notice to the defaulting Party. The defaulting Party shall
commence and diligently thereafter pursue the curing of the Default within thirty (30) days after
receipt of notice of such Default; provided, however, if such a cure cannot reasonably be completed
within such thirty(30)day period, such failure shall not be a Default so long as such Party promptly
commences a cure within the thirty(30) day period and thereafter diligently prosecutes such cure to
completion.
Section 2.09. Remedies. Failure to cure, as specified above, shall be a Default hereunder.
Failure of Participant to cure, as specified above, any Event of Default specified in Section 2.05
herein shall require that full repayment of the Grant amount received by Participant be repaid to City
within thirty (30) days of notification by City. Failure of Participant to repay the Grant amount
within the thirty(30)day repayment period will result in the imposition of an interest charge which
will begin to accrue as of the date of default and continuing until such time as the Grant funds are
repaid in full, at the default rate of the lesser of ten percent (10%), compounded annually, or the
highest rate permitted by law. Nothing herein is intended to limit or restrict whatever specific
performance or other equitable remedies either Party may have in accordance with applicable law;
provided,however,that notwithstanding any other provision of this Agreement,City shall not have
the remedy of specific performance to Default of this Agreement, or any portion hereof.
Section 2.10. Rights and Remedies are Cumulative. Except as otherwise expressly stated in
this Agreement,the rights and remedies of the Parties under this Agreement are cumulative and the
exercise by any Party of one or more of such rights or remedies shall not preclude the exercise by
such Party at the same or different times, of any other rights or remedies for the same default or any
other default by another Party.
Section 2.11 Suspension or Termination. In accordance with 24 CFR 85.44, either Party
may terminate this Agreement at any time by giving written notice to the other Party of such
termination and specifying the effective date thereof at least thirty(30)days before the effective date
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of such termination. Partial terminations may only be undertaken with the prior approval of City. In
the event of any termination for convenience, all low- and moderate-income jobs created and
maintained by Participant for the minimum required periods under this Agreement shall be entitled
to receive just and equitable compensation.
In accordance with 24 CFR 85.43, City may also suspend or terminate this Agreement, in
whole or in part, if Participant materially fails to comply with any term of this Agreement, or with
any of the rules, regulations or provisions referred to herein; and City may declare Participant
ineligible for any further participation in City contracts, in addition to other remedies as provided by
law.
ARTICLE III
INDEMNITY AND INSURANCE
Section 3.01. Indemnity.
A. Participant shall defend, (with counsel reasonably satisfactory to City)indemnify and
hold harmless City,its elected officials, officers, employees and agents from and against(i)any and
all third party claims, losses, proceedings, damages, causes of action, liability, costs and expenses
(including reasonable attorneys' fees) arising from or in connection with or caused by any act,
omission or negligence of Participant and its contractors, agents and employees in connection with
Participant (other than to the extent arising as a result of City's sole negligence or willful
misconduct); (ii) any action or proceeding brought by any third party challenging the validity of any
provision of, or the entirety of, this Agreement; and (iii) any action commenced by a third party
challenging Participant on the grounds that any permit,license or grant of entitlement for Citrograph,
LLC should not have been issued or was issued without proper authority or adequate findings. City
shall fully cooperate in the defense of any such actions and shall provide to Participant such
documents and records as are relevant to such actions.
B. If a third party files an action regarding City's approval of this Agreement or the
pursuit of the activities contemplated by this Agreement, City may terminate this Agreement on
thirty(30)days written notice to Participant of City's intent to terminate this Agreement,referring to
this Section 3.01, without any further obligation to perform the terms of this Agreement and without
any liability to Participant resulting from such termination,unless Participant unconditionally agrees
to defend and indemnify City against such third-party legal action as provided in this Section 3.01.
Section 3.02. Insurance.
A. Worker's Compensation. Participant shall comply with, and shall cause its
contractors to comply with, all of the provisions of the Workers' Compensation Insurance and Safety
Acts of the State of California,the applicable provisions of the California Government Code and all
amendments thereto; and all similar state of federal acts or laws which are applicable; and shall
indemnify, defend and hold harmless City and its respective agents, representatives, officers and
employees from and against all claims, demands, payments, suits, actions, proceedings and
judgments of every nature and description, including attorneys' fees and costs presented,brought or
recovered against City and their respective agents, officers,representations and/or employees, for or
on account of any liability under any of said acts which may be incurred by reason of any work to be
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performed by Participant under this Agreement.
B. Liability Insurance. Participant shall furnish to City and maintain in force during the
term of this Agreement a policy of comprehensive general liability insurance in which City and its
respective officers, employees, agents and representatives are named as additional insureds. The
policy shall indemnify City and its respective officers, representatives, agents and employees,while
acting within the scope of their duties, against any and all claims arising out of or in connection with
the Site, the items described in Attachment "A," and Participant's performance of this Agreement.
The policy shall provide coverage for combined single limit bodily injury and/or property damage in
an amount not less than One Million Dollars (S1,000,000) per occurrence and not less than Two
Million Dollars($2,000,000)aggregate. Such policy of insurance shall specifically provide that: (i)
any other insurance coverage which may be applicable to the loss shall be deemed excess coverage
and the Participant's insurance shall be primary; (ii) City and their respective officers, agents and
employees, shall be additional insureds; and (iii) coverage may not be terminated or modified
excepting upon thirty(30) days prior written notice to City.
C. Property Damage Insurance. Participant shall furnish to City and maintain throughout
the term of this Agreement property damage insurance in amounts reasonably required by City from
time to time, with City named as loss payee(if such coverage is available) and in no event less than
One Million Dollars ($1,000,000).
All insurance as made available pursuant to this Section 3.02 shall provide that it may not be
canceled or materially modified without thirty(30)days prior written notice to City. City shall be an
additional insured in policies required under subsections (B) and (C). No such insurance shall
include deductible amounts to which City has not previously consented in writing. Certificates of
insurance for the above policies (and/or original policies, if required by City) shall be delivered to
City from time to time within ten (10) days after demand therefor.
ARTICLE IV
ADMINISTRATIVE AND COMPLIANCE REQUIREMENTS
Section 4.01. Accounts and Records.
A. Accounts. Participant will maintain books, records, documents, and other evidence
pertaining to all costs and expenses incurred and revenues acquired under this Agreement to the
extent and in such detail as will properly reflect all costs, direct and indirect, of labor, materials,
equipment, supplies, services and other costs and expenses.
B. Audit and Inspection. At any time during normal business hours and as frequently
deemed necessary, Participant shall make available to City and the HUD, or their agents, for their
examination, all of its records pertaining to all matters covered by this Agreement and permit these
agencies to audit, examine, make excerpts, or transcripts from such records, contract, invoices,
payrolls, personnel records, conditions of employment, and all other matters covered by this
Agreement.
C. Retention of Records. All records in the possession of Participant pertaining to this
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Agreement shall be retained by Participant for a period of five(5)years beginning with the date upon
which the final payment under this Agreement is issued. All records shall be retained beyond the
five (5) year period if audit findings have not been resolved within that period or if other disputes
have not been resolved. Records for nonexpendable property acquired under this Agreement shall be
retained for a five(5) year period after the final disposition of property..
D. Close-Outs. Participant's obligation to City shall not end until all close-out
requirements are completed within thirty (30) days after expiration of this Agreement. Activities
during this close-out period shall include, making final payments, disposing of program assets
(including the return of all unused materials, equipment, unspent cash advances, program income
balances, and receivable accounts to Participant, and determining the custodianship of records.
Section 4.02. Benefit to City. The underlying purpose of the Grant is to provide specific
benefits to City. To that end, Participant further agrees to the new job creation and hiring
requirements as described in Attachment "B" of this Agreement.
Section 4.03. Employment Provisions.
A. Prohibited Activity. Participant is prohibited from using funds provided herein or
personnel employed in the administration of the program for political activities; sectarian, or
religious activities; lobbying, political patronage, and nepotism activities.
B. OHSA. When employees are engaged in activities not covered under the
Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be
trained, or receive services in buildings or surroundings or under working conditions which are
unsanitary, hazardous or dangerous to the participants' health or safety.
C. Right to Know. Participants employed or trained for inherently dangerous
occupations,e.g.,fire or police jobs, shall be assigned to work in accordance with reasonable safety
practices.
D. Discrimination in Employment. Participant shall not discriminate against any
qualified employee or applicant for employment because of race,color,religion,sex,national origin,
age, or physical or mental disability. Participant should take affirmative action to ensure that
applicants are employed and employees are treated without regard to national origin, age, or
disability. Such action shall include but may not be limited to the following: employment,
upgrading,demotion or transfers;recruitment or recruitment advertising; lay-off or termination;rates
of pay or other forms of compensation; and selection for training, including an apprenticeship.
Participant agrees to post notices setting forth the provision of the nondiscrimination clause in
conspicuous places so as to be available to all employees.
E. Consideration for Employment. Participant shall, in all solicitations or
advertisements for employees placed by or on behalf of City, shall state that all qualified applicants
will receive consideration for employment without regard to race, color, religion, sex, national
origin, age, or disability.
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F. Civil Rights Compliance in Employment. Participant shall comply with all relevant
provisions of the Fair Labor Standards Act (29 USC Section 201 et. seq.), Section 504 of the
Vocational Rehabilitation Act of 1973 (29 USC Section 794), the Age Discrimination in
Employment Act of 1967 (42 USC Section 6101 et. seq.). Participant will furnish all infoi illation
and reports requested by City or required by or pursuant to the rules and regulations thereof and will
permit access to payroll and employment records by City to investigate compliance with these rules
and regulations.
G. Labor Standards. Participant agrees to comply with the requirements of the Secretary
of Labor in accordance with the Davis-Bacon Act as amended, the provisions of Contract Work
House, the Safety Standards Act, the Copeland "Anti-Kickback" Act (40 USC 276c, 327-333) and
all other applicable federal, state,and local laws and regulations pertaining to labor standards insofar
as those Acts apply to the performance of this Agreement. Participant shall maintain documentation
which demonstrates compliance with hour and wage requirements of this part. Such documentation
shall be made available to City for review upon request.
H. Section 504. Participant agrees to comply with any federal regulations issued
pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (929 USC 706), which
prohibits discrimination against the handicapped in any federally assisted program.City shall provide
Participant with any guidelines necessary for compliance with that portion of the regulations in force
during the term of this Agreement.
I. Labor Laws and Minimum Wage. Participant shall comply with all provisions of the
federal Fair Labor Standards Act (FLSA) and all applicable California Labor Code statutes. The
minimum wage paid to all employees shall at all times comply with the higher of: the effective
employee wage payment provisions of federal law as established under the FLSA or California Labor
Code Section 1182.12 as effectuated by the California Minimum Wage Order as published by the
California Department of Industrial Relations under the authority of Labor Code Section 1182.13 and
any applicable industry wage order as published by the California Industrial Welfare Commission
issued pursuant to AB 1835, Chapter 230, Statutes of 2006.
Section 4.04. Affirmative Action.
A. Executive Order 11246. Executive Order 11246 requires that during the performance
of this Agreement, Participant agrees not to discriminate against any employee or applicant for
employment because of race, color, religion,creed, ancestry, disability or other handicap,sex,color,
age, marital/familial status or national origin. Participant will take affirmative action to ensure that
all employment practices are free from such discrimination. Such action shall include, but not
limited to, the following: employment upgrading, demotion or transfer; recruitment or recruitment
advertising; layoff or teiiiiination; rates of pay or other forms of compensation; and selection for
training, including apprenticeship. Participant agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided by City setting forth the provisions
of this nondiscrimination clause.
B. Women-Owned/Minority-Owned Business Enterprises. Participant will use its best
efforts to afford minority and women-owned business enterprises the maximum practicable
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opportunity to participate in the performance of this Agreement. As used in this Agreement,the term
"minority and female business enterprise"means a business at least fifty-one(51)percent owned and
controlled by minority group members or women. For the purpose of this definition, "minority
group members"are African Americans, Spanish-speaking, Spanish surnamed or Spanish-heritage
Americans,Asian-Americans, and American Indians. Participant may rely on written representation
by participants regarding their status as minority and female business enterprises in lieu of
independent investigation.
C. Civil Rights Act of 1964. Participant agrees to comply with Title VI of the Civil
Rights Act of 1964 which provides that no person shall, on the grounds of race, color, or national
origin,be excluded from participation in,be denied the benefits of,or be subjected to discrimination
under any program or activity receiving Federal financial assistance.
D. Housing and Community Development Act of 1974. Participant shall comply with
Section 109,Title I of the Housing and Community Development Act of 1974,which provides that
no person shall discriminate against any person or deny benefits on the basis of race, color,national
origin, or sex under any program or activity funded in whole or in part with funds made available
under this Title.
E. Notifications. Participant shall send to each labor union or representative of workers
with which it has a collective bargaining agreement or other contract or understanding,a notice to be
provided by the agency contracting officer, advising the labor union or worker's representative of
Participant's commitments hereunder, and shall post copies of the notice in conspicuous places
available to employees and applicants for employment.
F. EEO/AA Statement. Participant will, in all solicitations or advertisements for
employees placed by or on behalf of Participant, state that it is an Equal Opportunity or Affirmative
Action Employer.
G. Subcontract Provisions. The requirements of Executive Order 11246 and the Civil
Rights provisions of this Section 4.04 shall be included by Participant in every contract,sub-contract,
or purchase order so that the provisions are binding on every contractor, sub-contractor, or vendor
paid for in whole or in part with CDBG funds.
H. Section 3 of the Housing and Urban Development Act of 1968. To the greatest extent
possible.Participant shall employ lower income residents of the area. Participant shall comply with
all applicable provisions of Section 3 of the Housing and Urban Development Act of 1968, as
amended, 12 U.S.C. 1701, et seq.
Section 4.05. Wage and Labor Requirements. Participant warrants that it will hire
contractors with the expertise, experience, and appropriate licensing and insurance to properly install
the equipment as described in Attachment "A."
A. Compliance with the Davis Bacon Act(Payment of Prevailing Wages). Participant is
aware of the requirements of California Labor Code Section 1720, et seq., and 1770,et seq., as well
as Title 8,California Code of Regulations, Section 16000 et seq., and the Federal Davis-Bacon Act,
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as amended (40-U.S.C. 276a-276a-5) [40 USCS §§ 3141-3144, 3146, 3147], ("Prevailing Wage
Laws"), which require the payment of prevailing wage rates and the performance of other
requirements on"public works"and"maintenance"projects. If the work is being performed as part
of an applicable"public works"and"maintenance"project, as defined by the Prevailing Wage Rate,
and if the total compensation is $1,000 or more, or$2,000 or more, respectively, Participant agrees
to fully comply with such Prevailing Wage Laws. City shall provide Participant with a copy of the
prevailing rates of per diem wages in effect on the Effective Date of this Agreement—Attachment
"D"; such wage rates are subject to change and it shall be the Participant's responsibility to obtain
any revised wage rates in effect at the time of the performance of any applicable labor on the Project.
Participant shall make copies of the prevailing rates of per diem wages for each craft, classification
or type of worker needed to execute the work available to interested parties upon request, and shall
post copies at Participant's Site. Participant shall defend, indemnify and hold City, and its elected
officials, officers, employers and agents free and harmless from any claim or liability arising out of
any failure to alleged failure to comply with the Prevailing Wage Laws.
Section 4.06. Procurement.
A. Compliance. Participant shall comply with current federal policy concerning the
purchase of equipment and other items with federal funds and shall maintain an inventory of all non-
expendable personal property as defined by such policy as may be procured with funds provided
herein (Attachment "E").
B. OMB Standards. Participant shall procure materials in accordance with the
requirements of OMB Circular A-110, Sections 215.40 through 215.48-Procurement Standards, and
shall subsequently follow Sections 215.30 through 215.37 - Property Management Standards,
governing the management and disposition of property acquired with federal funds.
C. Relocation, Acquisition and Displacement. Participant shall comply with 24 CFR
570.606 relating to the acquisition and disposition of all real property utilizing CDBG funds, and to
the displacement of persons,businesses,nonprofit organization and farms occurring as a direct result
of any acquisition of real property utilizing CDBG funds. Participant agrees to comply with all
applicable City ordinances, resolutions and policies concerning displacement of individuals from
their residences.
D. Copyright. If this Agreement results in any copyrightable material, the Federal
Government reserves a royalty-free, nonexclusive, and irrevocable license to reproduce,publish,or
otherwise use and to authorize others to use, for Federal Government purposes: (1)the copyright to
any work developed with CDBG funds, and (2) any rights of copyright which a subrecipient or a
contractor purchases with CDBG support.
Section 4.07. Conduct.
A. Assignability. Participant shall not assign or transfer any interest in this Agreement
without the prior written consent of City thereto; provided, however,that claims for money due or to
become due to Participant from City under this Agreement may be assigned to a bank, trust
company, or other financial institution without such approval. Notice of any such assignment or
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transfer shall be furnished promptly to City.
B. Hatch Act. Participant agrees that no funds provided, nor personnel employed under
this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in
violation of Chapter 15 of Title V United States Code.
C. Conflict of Interest. Participant shall to abide by the provisions of 24 CFR Part 570,
Section 611 with respect to conflicts of interests, and covenants that it presently has no financial
interest and shall not acquire any financial interest, direct or indirect, which would conflict in any
manner or degree with the performance of services required under this Agreement. Participant
further covenants that in the performance of this Agreement, no person having such a financial
interest shall be employed or retained by Participant hereunder. These conflict of interest provisions
apply to any person who is an employee, agent consultant, officer, or elected official or appointed
official of City,or of any designated public agencies or Participant that are receiving funds under the
CDBG Entitlement program.
Section 4.08. Environmental Requirements.
A. Air and Water. Participant shall comply with the following regulations insofar as they
apply to the perfoiniance of this Agreement:
1. Clean Air Act, 42 USC, 1857, et seq.
2. The Clean Water Act, as amended, 33 USC, Section 1251, et seq. (1972), as
amended, and Section 1318 relating to inspection,monitoring,entry,reports
and information, as well as other requirements and regulations and
guidelines issued thereunder.
3. Environmental Protection Agency(EPA)regulations pursuant to 40 CFR,Part
50, as amended.
4. National Environmental Policy Act of 1969.
5. HUD Environmental Review Procedures (24 CFR, Part 58).
6. California Environmental Quality Act of 1974.
B. Flood Disaster Protection. Participant shall comply with the requirements of the
Flood Disaster Protection Act of 1973 (P.L.-2234)in regard to the sale,lease or other transfer of land
acquired,cleared or improved under the terms of this Agreement,as it may apply to the provisions of
this Agreement.
C. Historic Preservation. Participant shall comply with the historic preservation
requirements set forth in the National Historic Preservation Act of 1966,as amended(16 U.S.C. 470)
and the procedures set forth in 36 CFR, part 800, Advisory Council on Historic Preservation
Procedures for Protection of Historic Properties, insofar as they apply to the performance of this
Agreement. In general, this obligation requires concurrence from the State Historic Preservation
Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or
that are included on a Federal, State, or local historic property list.
Section 4.09. City and Other Governmental Permits. Before commencement of construction
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or development of any building, structures or other work of improvement upon the Site,Participant
shall secure or cause to be secured any and all permits which may be required by City or any other
governmental agency affect by such construction, development or work. City shall provide all
proper assistance to Participant in securing these permits, including but not limited to, coordination
with all on—site and off-site building plans submitted to any public entity or public utility by
Participant.
ARTICLE V
MISCELLANEOUS PROVISIONS
Section 5.01. Maintenance of Site. During Citrograph Printing Company's operation,
Participant shall keep and maintain the Site, and all the improvements thereon and all facilities
appurtenant thereto, in a clean, sanitary and orderly condition free from debris, graffiti and waste
materials and in good order, repair and safe condition consistent with comparable printing and
promotional product distribution businesses located in California.
Section 5.02. Designation of City as Point of Sale. To the extent permitted by law,
Participant shall designate City as the"point of sale"in all reports to the State Board of Equalization
for all Participant operations and other business conducted upon the Site.
Section 5.03. City and Other Governmental City Permits. Before commencement of
construction or other work of improvement on the Site, Participant shall secure or cause to be
secured any and all permits which may be required by City or any other governmental agency
affected by such construction , development or work. City shall provide all proper assistance to
Participant in securing these permits, including but not limited to coordination with all on-site and
off-site building plans submitted to any public entity or public utility by Participant.
Section 5.04. Political Activity/Lobbying Certification. No member,official or employee
of City shall have any personal interest, direct or indirect, in this Agreement nor shall any such
member,official or employee participate in any decision relating to this Agreement which affects his
personal interests of the interests of any corporation,partnership or association in which it is,directly
or indirectly, interested. Participant warrants that is has not paid or give, and will not pay or give,
any third party any money or other consideration for obtaining this Agreement except for payments
of Participant's attorneys' and consultants' fees as Participant may incur in preparation of this
Agreement. Participant may not conduct any activity, including any payment to any person, officer,
or employer of any agency or member of Congress in connection with the awarding of any federal
contract or grant, intended to influence legislation, administrative rule-making or the election of
candidates for public office during time compensated for under the contract of under representation
that such activity is being performed as a part of the contract responsibility. Participant shall comply
will all applicable federal, state, and county laws and regulations governing conflicts of interest.
Section 5.05. Compliance With Governmental Requirements. Participant shall carry out the
purchase of the equipment in conformity with all applicable laws, ordinances,statutes,codes,rules,
regulations, orders and decrees of the United States, the State of California, the County of San
Bernardino,the City and any other political subdivision in which the Site is located,and of any other
political subdivision, agency or instrumentality exercising jurisdiction over the City, Participant or
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the Site, including all applicable federal, state and local occupation, safety and health laws, rules,
regulations and standards, applicable state and labor standards, applicable prevailing wage
requirements, development standards (as they apply to the purchase of the items described in
Attachment "A" of this Agreement); building, plumbing, mechanical and electrical codes, as they
apply to the purchase of the items described in Attachment "A" of this Agreement, and all other
provisions of City(as they apply to Participant), and all applicable disabled and handicapped access
requirements, including, without the limitation, the Americans With Disabilities Act (42 U.S.C.
12101 et seq.), and the Unruh Civil Rights Act, Civil Code Section 51 et seq. ("Governmental
Requirements"). Nothing in this Section 5.05 shall be construed to require Participant to comply
with any laws, regulations or standards which would not be applicable in the absence of this
Agreement.
Section 5.06. Notices. All notices under this Agreement shall be given in writing by
personal delivery,by certified mail or registered United States Mail,return receipt requested,postage
prepaid, and shall be deemed communicated when received if given by personal delivery or upon
receipt or rejection if mailed as provided above Mailed notices shall be addressed as set forth
below, but either Party may change its address by giving written notice thereof to the other in
accordance with the provisions of this Section 5.06.
CITY: PARTICIPANT:
Development Services Director Citrograph, LLC, dba Citrograph Printing Co.
City of Redlands Alfredo Hernandez
P.O. Box 3005 C. Ryan Bailey
Redlands, CA 92373 113 E. State St.
Redlands, CA 92373
Section 5.07. Entire Agreement/Amendment. This Agreement constitutes the entire
agreement between City and Participant concerning the subject matter hereof, and supersedes any
and all prior agreements and understandings, whether written or verbal, between the Parties
regarding the same. This Agreement may not be modified or amended except in a writing signed by
the Parties.
Section 5.08. Attorneys' Fees. In the event of the bringing of an arbitration,action or suit by
a Party to this Agreement against the other Party to this Agreement by reason of any breach of any of
the covenants or agreements or any intentional inaccuracies in any of the representations and
warranties on the part of the Party arising out of this Agreement or any other dispute between the
Parties concerning this Agreement,then, in that event, the prevailing party in such action or dispute,
whether by final judgment or arbitration award, shall be entitled to have and recover of and from the
other Party all costs and expenses of suit or claim, including reasonable attorneys' fees. Any
judgment, order or award entered in any final judgment or award shall contain a specific provision
providing for the recovery of all costs and expenses of suit or claim, including reasonable attorneys'
fees (collectively, the "Costs") incurred in enforcing, perfecting and executing such judgment or
award. For the purposes of this Section 5.08, Costs shall include, without implied limitation,
reasonable attorneys' and experts' fees, costs and expenses incurred in the following: (i) post
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judgment motions and appeals, (ii) contempt proceedings, (iii) garnishment, levy and debtor and
third party examination; (iv)discovery;and(v)bankruptcy litigation. This Section 5.08 shall survive
any termination of this Agreement.
Section 5.09. Police Power. Nothing contained in this Agreement shall be deemed to limit,
restrict, amend or modify, or to constitute a waiver or release of, any ordinances, notices, orders,
rules,regulations or requirements(now or hereafter enacted or adopted andlor as amended from time
to time) of City or its departments, commissions, agencies and boards and the officers of City,
including without limitation, any general plan or zoning ordinances, or any of City's duties,
obligations, rights or remedies thereunder or pursuant thereto or the general policy powers, rights,
privileges and discretion of City in the furtherance of the public health, welfare and safety of the
inhabitants of City; provided, however, that City agrees not to take any action to frustrate or hinder
the intent or effect of this Agreement.
Section 5.10. No Effect on City's Legislative Authority. Nothing in this Agreement shall
limit or restrict the authority of City to take any other actions with respect to the equipment and/or
Citrograph, LLC without notice to or consent from Participant,except as may otherwise be expressly
provided by applicable law.
Section 5.11. Force Majeure. Time for performance hereunder shall be extended by any
period of delay caused by circumstances beyond the reasonable control of the Party claiming the
delay despite the Party's diligent efforts,other than financial ability,provided the Party claiming the
delay provides written notice to the other Party within a reasonable period following commencement
of any such circumstances which circumstances shall include,without limitation,fire/casualty losses;
strikes; litigation;unusually severe weather; inability to secure necessary labor, materials, or tools;
environmental remediation, including governmental review and processing of environmental
remediation;delays of any contractor, subcontractor or supplier;delay caused by the other Party; and
acts of God (collectively, "Force Majeure").
Section 5.12. Time of the Essence. Time is of the essence of this Agreement and the Parties'
obligations under this Agreement.
Section 5.13. Authority to Execute. The person executing this Agreement on behalf of
Participant warrants and represents that such person has the authority to execute this Agreement on
behalf of its corporation,partnership or business entity and warrants and represents that such person
has the authority to bind Participant to the performance of its obligations hereunder.
Section 5.14. Release of City Officials. No elected official, officer, employee or agent of
City shall be personally liable to Participant,or any successors-in-interest of Participant,in the event
of any default or breach by City or for any amount which may become due to Participant or its
successors, or on any obligations under the terms of this Agreement. Participant hereby waives and
releases any claim it may have against the elected officials, officers, employees and agents of City
with respect to any default or breach by City or for any amount which may be come due to
Participant or its successors, or on any obligations under the terms of this Agreement. Participant
makes such release with full knowledge of California Civil Code section 1542, and hereby waives
any and all rights thereunder to the extent of this release, if such Civil Code section 1542 is
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applicable. California Civil Code section 1542 provides as follows:
"A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with the
debtor."
Section 5.15. Headings. The headings to the sections of this Agreement have been inserted
for convenience only and shall not, to any extent, have the effect of modifying, amending or
changing the expressed tern's and provisions of this Agreement.
Section 5.16. Actions. In addition to any other rights or remedies, either Party may institute
legal or equitable action to cure, correct or remedy any default,to recover damages for any default,or
to obtain any other remedy authorized by law or equity consistent with the purpose of this Agreement
and the Exhibits hereto. Any legal action of proceeding concerning this Agreement shall be filed and
prosecuted in the Superior Court of the County of San Bernardino, State of California.
Section 5.17. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California, without regard to its conflicts of law principles.
Section 5.18. Successors and Assigns. The provisions of this Agreement shall be binding
upon, and inure to the benefit of, City and Participant and their respective successors and assigns.
Section 5.19. No Joint Venture. Nothing contained in this Agreement shall be construed to
render City in any way,or for any purpose, a partner,joint venturer,or associated in any relationship
with Participant,nor shall this Agreement be construed to authorize any Party to act as an agent for
the other.
Section 5.20. No Third Party Beneficiaries. No provision, tem' or condition of this
Agreement is intended to, nor shall be construed as conferring any benefit to,any third party,person
or entity.
Section 5.21. Waiver. The waiver by City or Participant of any breach by the other Party of
any term, covenant or condition contained in this Agreement shall not be deemed to be a waiver of
such tei in, covenant or condition or any subsequent breach of the same or any other term, covenant
or condition herein contained. Any Partys acceptance of any performance by the other Party after
the due date of such performance shall not be deemed to be a waiver by any Party or any preceding
breach by the other Party of any term, covenant or condition of this Agreement, regardless of such
Partys knowledge of such preceding breach at the time of acceptance of such performance.
Section 5.22. Severability. If any term, provision, condition, or covenant of this
Agreement or its application to any Party or circumstances shall be held, to any extent, invalid or
unenforceable,the remainder of this Agreement,or the application of the term,provision,condition
or covenant to persons or circumstances other than those as to whom or which it is held invalid or
unenforceable shall not be affected, and shall be valid and enforceable to the fullest extent permitted
by law.
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Section 5.23. Interpretation. No inference in favor of or against any Party shall be drawn
from the fact that such Party has drafted any part of this Agreement. The Parties have both
participated substantially in the negotiation, drafting, and revision of this Agreement, with advice
from legal and other counsel and advisers of their own selection. In any action or proceeding to
interpret or enforce this Agreement,the finder of fact may refer to any or enforce extrinsic evidence
not in direct conflict with any specific provision of this Agreement to determine and give effect to
the intention of the Parties.
Section 5.24. Notice of Litigation. Participant shall promptly notify City in writing of any
litigation materially affecting Participant or any property purchased with the proceeds of this Grant
and of any claims or disputes that involve a material risk of such litigation.
ARTICLE VI
SPECIAL PROVISIONS
Section 6.01. Requirements of Title 24 Code of Federal Regulations. Participant agrees to
comply with the requirements of Title 24 Code of Federal Regulations, Part 570 of the U.S.
Department of Housing and Urban Development regulations CDBG, and all federal regulations and
policies issued pursuant to these regulations. Participant further agrees to utilize funds available
under this Agreement to supplement rather than supplant funds otherwise available.
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IN WITNESS WHEREOF,the parties have executed this Agreement as of the date and year
first written above.
CITY OF REDLANDS CITROGRAPH, LLC
/ i
Pete Aguilar, Mayor Alfredo/D. Hernandez, Partn-
Li ,...0401111111V
45111111", 11 ", "7-
yan ..
/ . ..a - ...i.«
...-
DUNS Number: 079110688
ATTEST:
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Sam Irwin, City cNierk
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ATTACHMENTS AND EXHIBITS
Attachment"A" Description of items to be purchased with CDBG Grant Proceeds
Exhibit 1 Technical Specifications/Quotes
Attachment "B" Employment Requirements
Exhibit 1 Prospective Employee Questionnaire (with 2013 income guidelines)
Exhibit 2 Job Generation Form
Exhibit 3 Actions to Ensure First Consideration of Low-To Moderate-Income Persons
Exhibit 4 Roles to Ensure Low-To Moderate-Income Benefit
Exhibit 5 Quarterly Report Form
Attachment "C" Personal Guaranty
Attachment "D" Wage Determination
Attachment"E" Federal Procurement Requirements
Exhibit 1 Small/Informal Bid From
Attachment"F" Grant of Security
Attachment "G" Microenterprise Assistance Program(MAP)for Small Businesses Guidelines
ATTACHMENT "A"
DESCRIPTION OF ITEMS TO BE PURCHASED WITH CDBG GRANT PROCEEDS
DESCRIPTION OF EQUIPMENT
CDBG funds in an amount not to exceed $11,282.00 are to be utilized solely for acquisition of the
following specifically listed items at the indicated costs, and for no other purpose:
1. Ricoh GX7000 Sublimation Printer $500.00
2. Geo Knight Digital Combo Press $600.00
3. Geo Knight Press Attachments/Accessories $260.00
4. Mug Express 300 $100.00
5. Sublimation Blanks/Ink/Inventory $2,322.00
6. Digital images of 1,500 Fruit Crate Labels and 90 Historic Postcards $7,500.00
of Redlands
MAP funds may not to be utilized for any installation or connection activities of the above listed
equipment. Specifications for the above are provided in Exhibit 1 to this Attachment.
The City may issue an advance CDBG payment directly to the Participant for the above listed
equipment acquisitions. However, if advance payment is issued,within ten(10)calendar days of any
advance payment, the City must receive documentation from Participant which demonstrates that
funds were appropriately expended for the above items, or the CDBG funds must be returned to the
City.
WORKING CAPITAL
CBDG funds in an amount not to exceed $13,718.00 are to be utilized as working capital by
Citrograph, LLC for the following approved expenditures, and for no other purpose:
1. The payment of employee salaries and federal and state withholding, state disability, and
Federal Insurance Contributions Act (FICA) payments which are directly related to the
eligible salaries being paid in an amount not to exceed$12,018.00. Eligible salary payments
are limited to those employee wages incurred subsequent to the date of this Agreement.
Back taxes, delinquent payments, or any payments not directly attributable to current
employee salary payments, as well as wage or draw payments to the owners of Citrograph
LLC are not eligible for CDBG payment consideration.
2. iMac 2.9 GHz Core Intel Computer for a purchase price not to exceed $1,700.00.
Working Capital Reimbursements
Upon the submission of suitable supporting documentation to the City, demonstrating to the City's
satisfaction that payment of eligible expenditures by the Participant have been made, a request for
reimbursement payment will be processed in accordance with the City's standard warrant register
procedures. All of the above listed equipment and working capital expenditures must be fully
expended within nine (9) months of the date of this Agreement.
EXHIBIT "1" to ATTACHMENT "A"
Equipment Technical Specifications
Ricoh GX7000 Printer:
Configuration Desktop
Technology Up to 10,000 prints per month
Resolution True: 1200x1200dpi Max: 3600x1200dpi equ.
Maximum Print 29ppm B/W & Color
Speed
First Print Speed B/W: 6.5 seconds or less Color: 9 seconds or less
Paper Handling Up to 600 sheets
Acceptable Paper 8.5"x11", 8.5"x14", 11"x17", A4, A5, B5
Sizes
Acceptable Paper 16 - 421b. Paper Tray
Weights
Technology On Demand Piezo Inkjet System
Output Capacity 100 Sheets Face Up
Dimensions (W x 21.46" x 21.97" x 10.43"
D x H)
Power 35W or less
Consumption
Geo Knight Digital Combo Press:
• Fully digital temperature control (32°-600°F range)
• Automatic digital timer & dual pre-press timer
• Digital pressure bar graph
• Interchangeable Heat Platens & Tables (sold separately)
• Solid steel framework
• SuperCoil-MicrowindingTM heater technology
• Accommodates items up to 2" thick
• Temperature readout accuracy of±2°F -- Can show °C or °F
• 70 Programmable presets
• Records number of pressing cycles done
• Non-stick-coated 3/4" thick heat platen
• Lifetime warranty on heat platen
• Shirt & Tile attachments included
• Weight: 135 lbs
• Electrical: 1500W/ 12A / 110V
• Dimensions: 22"L x 22"W x 22"H
Mug Express 300:
• Digital electronic controls
• Maximum heating area 8" x 4.5"
• Adjustable pressure settings
• Temperature: up to 428° Fahrenheit
• Adjustable timer with automatic alarm
• Power 110v, 60Hz, 350W
Apple iMac, 2.9 GHz quad-core Intel Core i5 processor:
• 2.69 GHz quad-core Intel Core i5 processor
• 27-inch LED-backlit display with IPS technology
• NVDIA GeForce GTX 660M graphic processor with 512MB of GDDR5 memory
ATTACHMENT "B"
EMPLOYMENT REQUIREMENTS
Community Development Block Grant(CDBG)Microenterprise Assistance Program for Small
Businesses (MAP) funds are based on job creation primarily for low- and moderate-income
persons. At least one full-time equivalent(FTE)job is to be created per$25,000 of CDBG funds
granted. Participant will provide training for any of those jobs requiring special skills or
education, as indicated on the attached"Job Generation"form(Exhibit 2). For purposes of being
considered a created job, a job must be a new position (full or part-time).
At least 51 percent of created jobs (computed on a full-time equivalent basis) must be made
available to or held by Low or Moderate Income (LMI) persons. Created jobs are only
considered to be available to LMI persons when:
1. Special skills that can only be acquired with substantial training or work experience or
education beyond high school are not a prerequisite to fill such jobs, or the Participant agrees to
hire unqualified persons and provide training; and
2. Participant takes actions to ensure that LMI persons receive first consideration for filling
such jobs.
Jobs required to be created under these requirements must be provided within a period of sixty
(60) days from the date of this Agreement, and the created jobs must be maintained for a
minimum period of nine (9) months from the date of their respective creation.
In determining whether a job is made available to or held by a LMI person, Participants may
presume that a person is LMI, if he or she resides in a Census Tract with at least 70 percent LMI
persons, and provides acceptable verification documentation.
In counting jobs, the following policies apply:
1. Part-time jobs must be converted to full-time equivalents.
2. Only peimanent jobs count— temporary jobs may not be included.
3. Seasonal jobs may be counted only if the season is long enough for the job to be considered
as the employee's principal occupation.
4. All permanent jobs created by the activity must be counted even if the activity has
multiple sources of funding.
5. Jobs indirectly created by an assisted activity(i.e., trickle-down jobs) may not be counted.
To qualify,the person hired must be from a low-to moderate-income household. To qualify as
low- to moderate-income, information must be obtained on family size and income so it is
evident that family income does not exceed the low- to moderate-income limit.
Prospective employees interviewed must complete a Prospective Employee Questionnaire
(Exhibit 1) and must sign the form. The Prospective Employee Questionnaire serves as the
self-certification form for household income qualification.This information must be available for
monitoring by City and HUD staff.
Participant shall provide a quarterly performance report to City, no later than fifteen (15) days
after the completion of each quarter during the term of this Agreement. The quarterly report
shall include: photocopies of all employment outreach efforts completed during the quarter,
copies of all prospective employee questionnaires received, copies of the DE9 and DE9C forms
(the State of California Quarterly Wage and Withholding Report) for the completed quarter,and
the completed Quarterly Report Form (Exhibit 5).
Documentation to be attached to this Agreement is as follows:
A. A listing by job title of the peillianent jobs to be created by Participant,identifying which are
part-time, if any, and which jobs require special skills or education—"Job Generation"form
(Exhibit 2).
B. A description of the actions to be taken by Participant to ensure that low- and moderate-
income persons receive first consideration for those jobs — "Actions to Ensure First
Consideration of Low-to Moderate-Income Persons" form (Exhibit 3).
C. A description of the roles of City and Participant to ensure that the jobs required to be created
in the Agreement will benefit low-to moderate-income persons—"Roles to Ensure Low-to
Moderate-Income Persons Benefit" form (Exhibit 4).
EXHIBIT°l"TO ATTACHMENT "B"
PROSPECTIVE EMPLOYEE QUESTIONNAIRE - 2013
Our company has received jobs creation funds from the City of Redlands Community Development Block
Grant (CDBG) pnognam, and we are required to obtain the following information for all applicants. Your
cooperation is appreciated.
Name:
Address:
Job Title:
1. Head of Household: EjyWa|e 0 Female
2. Number in Household:
3. Please list all income for the past 12 months for each household member. Include the following:
Source of Income(If income is from
wages orsalary list employer name
Household Members Social
Annual and address).
(Names-Including Age Security
Income /fapplicant was unemployed prior to
Applicant) Number
acceptance of this job, please
indicate.
4. Please circle your household size and indicate your household annual income level. (First, determine
your household size; then follow the row across to the income range that includes your household
income.)
Household Household Income Household Income Household Income Household Income
Size (<]0%AMI) (31%'50%AMI) (51%'80%AMD (> 80%AMI)
) $13,400 or less $13,401 to$22,300 $22,301 to $35,700 Above$35,700
2
$15,300 or less $15.301to$25,500 $I5,501 to $40,800 Above$40,800
3 $17,200 or less $17,201 to $28,700 $28,701 to $45,900 Above$45,900
4 $l0.|00nrless $19,101 /n $31,850 S31,051to550,950 Above$50,950
5 $20,650 or less $20,651 to $34,400 $34,401 to $55,050 Above $55,050
6 $22,200 or less $22.201 to $36,950 $36,951 to $59,150 Above $59,150
7 S23.700o,less $23.701to $39.500 $30,501to $63,200 Above$63,200
8 $25,250or|cox �25I5\ �o $42,051 �oAbove�673UO
� . $42,050 $67,300 ,
2013 income limits-Median Family Income for San Bernardino
County is$62,600
5. Please respond to both of the following:
Ethnic Categories:
0 Hispanic or Latino
0 Not-Hispanic or Latino
Racial Categories: (This question must be asked of jj individuals)
LI American Indian or Alaska Native
O Asian
O Black or African American
O Native Hawaiian or Other Pacific Islander
O White
1:3 American Indian/Alaskan Native & White
U Black/African American & White
Ll Asian and White
U American Indian/Alaskan Native & Black/African American
CI Other multi-racial
I certify under penalty of perjury that the above information is true and accurate. I understand this
information is subject to verification by authorized officials.
(Signature of Applicant) (Date)
QUESTIONS BELOW TO BE ANSWERED BY EMPLOYER OR INTERVIEWER:
Eligibility Summary:
O Extremely Low income (<30% AMI)
O Low income (31% AMI to 50% AMI)
O Moderate income (51% AMI to 80% AMI)
0
Not Eligible(>80% AMI)
The person signing the certification was interviewed for employment and not hired because:
The person signing the certification was hired for the following position:
The employment start date for this applicant is:
He/She works hours per week. Permanent part-time jobs should be reported in
equivalent full-time positions.
He/She will receive Employer Sponsored Health Care Benefits: Yes [] No U
Signature of Interviewer: Date:
EXHIBIT "2" to ATTACHMENT "B"
JOB GENERATION FORM
QuantityAre Employer
Hours Available to
Job Title Job Category to be Wage Healthcare
Scheduled Low/Mod
Employed Benefits Provided?
Customer
Operatives One (1)
Service/Retail $8.00/hour 40 Yes No
(semi-skilled) FTE
Products
Note I: Positions will be filled from the above list of possible job titles.
Note 2: FTE=Full-Time Equivalent based on a 40-hour week. FTE positions noted above may be
filled with Part-Time workers, provided that the FTE requirement is met.
Note 3. Wage Payments are subject to the higher of federal and state minimum wage payment
requirements.
NEW FULL TIME EQUIVALENT (FTE) JOB CREATION AND
HIRING REQUIREMENTS
Number of New FTE
Number of New FTE Positions Required to
Hire Date Positions Required to Be Made Available to
be Created Low-Moderate Income
Persons
Within sixty days of the date of the Agreement, and
position retained for a minimum period of 9 months One (1) One (1)
after initial hire.
TOTAL NEW POSITIONS One (1) One (1)
Hiring goals are defined by the federal Department of Housing and Urban Development (HUD).
Regulations regarding Special Economic Development Activities are described in 24CFR570.203(b),
and national objectives are specified in §570.208(a)(4)(I)(ii)(iii)(iv)(v)(vi).
By signing below, Participant acknowledges receipt of a copy of the job creation and hiring
requirements, rules and regulations.
Citrograph, LLC
Dated: /0 — 13 By:
Alfre,.a D. Hernandez, Nader
• /
e--
C. Ryan Bailey-,Partner
Job Category Definitions
1. Officials and Managers — Occupants requiring administrative personnel who set broad
policies, exercise overall responsibility of execution of these policies, and individual departments or
special phases of a firm's operations. This includes: Officials. Executives, middle management,
plant managers and superintendents, salaried supervisors who are members of management,
purchasing agents and buyers, and kindred workers.
2. Professional—Occupants requiring either college graduation or experience of such kind and
amount as to provide a comparable background includes: accountants and auditors, airplane pilots
and navigators, architects, artists, chemists, designers, dietitians, editors, engineers, lawyers,
librarians,mathematicians, natural scientists, registered professional nurses,professional and labor
relations workers, physical scientists, physicians, social scientists, teachers and kindred workers.
3. Technicians—Occupants requiring a combination of basic scientific knowledge and manual
skill which can be obtained through about two years of post-high school education such as is offered
in many technical institutions and junior colleges, or through equivalent on the job training. This
includes: computer programmers and operators, drafters, engineering aides, junior engineers,
mathematic aides,licensed practical or vocational nurses,photographers,radio operators,scientific
assistants,surveyors,technical illustrators,technicians(medical,dental,electronic,physical science)
and kindred workers.
4. Sales—Occupants engaging wholly or primarily in direct selling. This includes: advertising
agenda and sales workers, real estate agents and brokers, sales workers, demonstrators and retail
sales workers, sales clerks, grocery clerks and cashiers, and kindred workers.
5. Office and Clerical—Includes all clerical-type work regardless of level of difficulty,where
the activities are predominantly non-manual though some manual work not directly involved with
altering or transporting the products is included. This includes: bookkeepers, cashiers, collectors
(bills and accounts),messengers and office helpers,office machine operators,shipping and receiving
clerks, stenographers, typists, secretaries, telegraph and telephone operators, and kindred workers.
6. Craft Worker (skilled) — Manual workers of relatively high level having a thorough and
comprehensive knowledge of the processes involved in their work. Exercise considerable
independent judgment and usually receive an extensive period of training. This includes: the
building trades,hourly paid supervisors and lead operators (who are not members of management),
mechanic and repairers, skilled machining occupations, compositors and typesetters, electricians,
engravers,job setters (metal), motion picture projectionists, pattern and model makers, stationary
engineers, tailors, and kindred workers.
7. Operatives(semi-skilled)—Workers who operate machines or other equipment or perform
other factory-type duties of intermediate skill level which can be mastered in a few weeks and
require only limited training. This includes: apprentices (auto mechanics, plumbers, electricians,
machinists, mechanics, building trades, metal working trades, printing trades, etc.), operatives,
attendants(auto service and parking),blasters,chauffeurs,delivery workers,dress makers and sewers
(except factory),laundry and dry cleaning,milliners,mine operatives and laborers,motor operators,
oilers and greasers (except auto), painters (except construction and maintenance), photographic
process workers,boiler tenders,truck and tractor drivers,weavers(textile),welders and flame metal
workers, and kindred workers.
8. Laborers (unskilled)—Workers in manual occupations which generally require no special
training perform elementary duties that may be learned in a few days and require the application of
little or no independent judgment. This includes: garage laborers, car washers and greasers,
gardeners(except farm) and ground keepers, stevedores,wood choppers,laborers performing lifting,
digging, mixing, loading, and pulling operations, and kindred workers.
9. Service Workers—Workers in both protective and non-protective service occupations. This
includes attendants (hospital and other institutions, professional and personal service, including
nurses aides and orderlies), barbers, chairworkers and cleaners, cooks (except household), counter
and fountain workers, elevator operators, firefighters and fire protection guards, door keepers,
stewards, janitors, police officers and detectives, porters, waiters and waitresses, and kindred
workers.
EXHIBIT "3" TO ATTACHMENT "B"
ACTIONS TO ENSURE FIRST CONSIDERATION TO
LOW- TO MODERATE-INCOME PERSONS
CITROGRAPH, LLC
Participant will implement the following comprehensive plan designed to ensure first consideration
of low- and moderate-income persons for jobs created by the Microenterprise Assistance Program for
Small Businesses(MAP)assisted activity. The plan will consist of the following actions which will
insure early exposure of employment opportunities to low- and moderate-income area residents:
• A comprehensive program to adequately advertise the job opportunities in local publications,
such as the Redlands Daily Facts.
• A particular focus shall be made to advertise in publications serving low- to moderate-
income households whenever feasible.
• In addition, flyers and notices of available positions will be posted on notice boards at Family
Services of Redlands.
EXHIBIT "4" to ATTACHMENT "B"
ROLES TO ENSURE LOW-TO-MODERATE INCOME BENEFIT
CITROGRAPH, LLC
The City of Redlands Microenterprise Assistance Program for Small Businesses(MAP)is a federally
funded Economic Development project. As such, the Department of Housing and Urban
Development (HUD) requires that each party to the Agreement agree to undertake certain roles to
ensure that the jobs created/retained will benefit low-to-moderate income (LMI) persons.
Actions required by each party are:
City of Redlands:
• Shall provide a summary of HUD Federal Requirements for CDBG Economic Development
activities for informational purposes and as a reference document.
• Shall be available to provide guidance and answer questions to ensure clarity and
understanding of HUD's requirements.
• Will specify exactly what needs to be reported quarterly by the Borrower.
• Will receive the Quarterly Performance Report package from the Borrower, review the
documentation, and provide written feedback within 30 days of receipt. City's written response
may contain suggestions or list adjustments if necessary to meet the requirements as provided in
the Agreement.
• Will identify LMI census tracts(census tracts where 70%of residents are low income)where
the Borrower may target or market their employee search. City will provide map.
• Will provide an updated annual income table each year to be used by the Borrower in
determining if an individual seeking employment qualifies as low-to-moderate income.
Participant:
• Shall accept the HUD Federal Requirements for CDBG Economic Development activities
and retain a copy for information and reference purposes.
• Shall seek guidance from City and ask questions as needed in order to ensure clarity and
understanding of HUD's requirements.
• Will submit a completed"Quarterly Performance Report"package each quarter as required.
• Will implement suggestions and adjustments as recommended by the City via letter within 60
days of receipt of City response letter.
• Refer to map of LMI census tracts when identifying where to conduct marketing of
employment opportunities.
• Perform outreach and marketing activities that provide jobs targeting for low-and moderate-
income applicants.
• Provide the City with copies of marketing materials, advertisements,want ads,etc. including
publication dates,name of publisher to document job marketing efforts in areas pre-determined
to be low-to-moderate income.
• If an applicant falls into the "presumed LMI" category, this must be documented by
referencing the census block number of where the applicant resides directly on the application
and again within the required reports to City.
EXHIBIT ^^5" TO ATTACHMENT "B"
QUARTERLY REPORT FORM
yNicnoenterprieeAaeiatanom Program (MAP)
The following Quarterly Report Form is required to be submitted to the City by the Participant within fifteen
days of the end of each quarter(Quarterly Periods ending March 31, June 30, September 30,and December
31). The initial submission shall address the quarter in which the effective date of the Agreement occurs,and
for each of the successive three (3) quarters (four (4) Quarterly Report Form submissions in total). Each
report is due within 15 days after the end of the quarter.
QUARTER: EiJan. Mar. 0 Apr.—June. 0 Jul. -Sep. Oct.—Dec.
Business Name:
Business Address:
EXPENDITURE OF CDBG FUNDS:
Briefly describe any expenses that were incurred during the quarter,which were reimbursedor are targeted for reimbursement with CDBG funds
Provide a narrative description of how these expenditures assisted your business:
ACCOMPLISHMENTS NARRATIVE
Briefly describe any changes in your business activities as a result of the Microenterprise Assistance Program funding
Describe any progress made toward attending the required City of Redlands/SCORE sponsored small business workshops:
Prepared by Date
Signature
ATTACHMENT "C"
PERSONAL GUARANTY OF PERFORMANCE
1.0 RECITALS
1.1 The City of Redlands, hereinafter referred to as "City" and Citrograph, LLC,
hereinafter referred to as "Participant," have executed a document entitled Microenterprise
Assistance Program (MAP) Grant Agreement (the -Agreement-) between City and Participant,
dated October 1, 2013, which provides for a grant in the amount of$25,000.00 (the"Grant").
1.2 Alfredo D. Hernandez hereinafter referred to as"Guarantor"has a financial interest in
Participant; and
1.3 City would not make the Grant to Participant if Guarantor did not execute and deliver
to City this Guaranty.
2.0 GUARANTEE
2.1 For and in consideration of the Grant by City,and as a material inducement to City to
make such Grant, Participant hereby, severally, unconditionally and irrevocably guarantees the
prompt payment by Participant of all sums payable by Participant under the Grant in the event of a
default of the Agreement and the faithfully and prompt performance by Participant of each and every
one of the terms, conditions and covenants of said Agreement to be performed by Participant.
2.2 The terms of the Agreement may be altered,affected,modified or changed by written
agreement between City and Participant, or by a course of conduct, without consent or notice to
Guarantor and this Guaranty shall thereupon and thereafter guarantee the performance of the
Agreement as so changed,modified, altered or assigned.
2.3 This Guaranty shall not be released, modified or affected by failure or delay on the
part of City to enforce any of the rights or remedies of City under the Agreement,whether pursuant
to the terms thereof or at law or in equity.
2.4 No notice of default need to be given to Guarantor, it being specifically agreed and
understood that the guarantee of the undersigned is a continuing guarantee under which City may
proceed forthwith and immediately against Participant following any breach or default by Participant
or for the enforcement of any rights which City may have as against Participant pursuant to or under
the terms of the Agreement or at law or in equity.
2.5 City shall have the right to proceed against Guarantor hereunder following any breach
or default by Participant without first proceeding against Participant and without previous notice or
to demand upon neither Participant or Guarantor.
2.6 Guarantor hereby waives (a) notice of acceptance of this Guaranty, (b) demand of
payment,presentation and protest, (c) all right to assert or plead any statue of limitations as to or
relating to the Guaranty and the Agreement, (d) any right to require the City to proceed against the
Participant or any other Guarantor or any other person or entity liable to City,(e)any right to require
City to apply to any default security deposit or other security it may hold under the Agreement,(f)
any right to require City to proceed under any other remedy City may have before proceeding
against Guarantor, (g) any right or subrogation.
2.7 Guarantor does hereby subrogate all existing or future indebtedness of Participant to
Guarantor to the obligations owed to City under the Agreement and this Guaranty.
2.8 Any married person who signs this Guaranty expressly agrees that recourse may be
held against his or her separate property for all of his or her obligations hereunder.
2.9 The obligations of Participant under the Agreement to execute and deliver estoppel
statements and financial statements, as therein provided, shall be deemed to also require the
Guarantor hereunder to do and provide the same relative to Guarantor.
2.10 The terms "City" whenever herinabove used refers to and means the City in the
foregoing Agreement specifically named and also any assignee of said City, whether by outright
assignment or by assignment for security,and also any successor to the interest of said City or of any
assignee in the Agreement or any part thereof, whether by assignment or otherwise.
2.11 The term "Participant" whenever hereinabove used refers to and means the
Participant and any successor to the interests of Participant, whether by assignment, sale, or
otherwise.
2.12 In the event any action is brought by City against Guarantor hereunder to enforce the
obligations hereinunder, the unsuccessful party in such action shall pay to the prevailing party
therein a reasonable attorney's fee which shall be fixed by the court.
Executed this 1st day of October, 2013 at REDLANDS, California.
"GUARANTOR"
. Rya < - ner
"CITY"
City of Redlands
Pete Aguilar,Mayor
"PARTICIPANT"
Citrograph,LLC a limited liability corporation
Alfredo D. Hernandez,P. er
r.
arrB-a� Iey Aartner
ATTACHM ENT "C"
PERSONAL GUARANTY OF PERFORMANCE
1.0 RECITALS
1.1 The City of Redlands, hereinafter referred to as "City" and Citrograph, LLC,
hereinafter referred to as "Participant," have executed a document entitled Microenterprise
Assistance Program (MAP) Grant Agreement (the "Agreement") between City and Participant,
dated October 1, 2013, which provides fora grant in the amount of 525,000.00 (the "Grant").
1.2 Alfredo D. Hernandez hereinafter referred to as"Guarantor"has a financial interest in
Participant; and
1.3 City would not make the Grant to Participant if Guarantor did not execute and deliver
to City this Guaranty.
2.0 GUARANTEE
2.1 For and in consideration of the Grant by City,and as a material inducement to City to
make such Grant, Participant hereby, severally, unconditionally and irrevocably guarantees the
prompt payment by Participant of all sums payable by Participant under the Grant in the event of a
default of the Agreement and the faithfully and prompt performance by Participant of each and every
one of the terms, conditions and covenants of said Agreement to be performed by Participant.
2.2 The terms of the Agreement may be altered,affected,modified or changed by written
agreement between City and Participant, or by a course of conduct, without consent or notice to
Guarantor and this Guaranty shall thereupon and thereafter guarantee the performance of the
Agreement as so changed, modified, altered or assigned.
2.3 This Guaranty shall not be released, modified or affected by failure or delay on the
part of City to enforce any of the rights or remedies of City under the Agreement,whether pursuant
to the terms thereof or at law or in equity.
2.4 No notice of default need to be given to Guarantor, it being specifically agreed and
understood that the guarantee of the undersigned is a continuing guarantee under which City may
proceed forthwith and immediately against Participant following any breach or default by Participant
or for the enforcement of any rights which City may have as against Participant pursuant to or under
the terms of the Agreement or at law or in equity.
2.5 City shall have the right to proceed against Guarantor hereunder following any breach
or default by Participant without first proceeding against Participant and without previous notice or
to demand upon neither Participant or Guarantor.
2.6 Guarantor hereby waives (a) notice of acceptance of this Guaranty, (b) demand of
payment, presentation and protest, (c) all right to assert or plead any statue of limitations as to or
relating to the Guaranty and the Agreement, (d) any right to require the City to proceed against the
Participant or any other Guarantor or any other person or entity liable to City,(e)any right to require
City to apply to any default security deposit or other security it may hold under the Agreement, (f)
any right to require City to proceed under any other remedy City may have before pro
against Guarantor, (g) any right or subrogation.
2.7 Guarantor does hereby subrogate all existing or future indebtedness of Participant to
Guarantor to the obligations owed to City under the Agreement and this Guaranty.
2.8 Any married person who signs this Guaranty expressly agrees that recourse may be
held against his or her separate property for all of his or her obligations hereunder.
2.9 The obligations of Participant under the Agreement to execute and deliver estoppel
statements and financial uiuteonentx, as therein provided, shall be deemed to also require the
Guarantor hereunder to do and provide the same relative to Guarantor.
2.10 The terms "City" whenever herinabove used refers to and means the City in the
foregoing Agreement specifically named and also any assignee of said City, whether by outright
assignment or by assignment for security,and also any successor to the interest of said City or o f any
assignee in the Agreement or any part thereof, whether by assignment or otherwise.
2.11 The term "Participant" whenever hereinabove used refers to and means the
Participant and any successor to the interests of Participant, whether by assignment, sale, or
otherwise.
2.12 In the event any action is brought by City against Guarantor hereunder to enforce the
obligations hereinunder, the unsuccessful party in such action shall pay to the prevailing party
therein a reasonable attorney's fee which shall be fixed by the court.
Executed this 1st day of October, 2013 at REDLANDS, California.
"GUARANTOR" /
Alfredo D. Hernandez
"CITY"
City of Redlands
„it1,
Pete Aguilar, Mayor
"PARTICIPANT"
Citrograph,LLC a]jnited liability corporation
Alfredo D. Hernandez, Partnet
t Ryantflai ey; ' rtner
ATTACHMENT "D"
Based on the approved description of items to be purchased,and other approved uses of CDBG grant
proceeds, as described herein within Attachment"A",the provisions of the Davis Bacon Act do not
apply.
In the event that there is a change in the use of CDBG funds, from those specified in Attachment
"A," the City reserves the right to review the applicability of the provisions of the Davis Bacon and
related acts, and impose additional Agreement requirements, as mandated under CDBG statutory
requirements.
ATTACHMENT "E"
FEDERAL PROCUREMENT REQUIREMENTS
Procurement requirements are in accordance with 24 Code Federal Regulations (CFR) Part 84
"Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher
Education, Hospitals and Other Non-Profit Organizations"— Revised OMB Circular A-110.
Small Purchase Procedures: $0.01 to $24,999.99
• Are those informal procurement methods where you must secure at least three(3) informal
bids, oral or written.
• You must document the following information: Company name and address,name of person
contracted, telephone number and minority status.
• A no bid is considered a bid. You must continue the process until three fixed dollar bids are
received.
• Use the Small/Informal Bid Form for documentation (Exhibit 1)
• Not allowed for soliciting construction services.
Small Purchase Procedures: $25,000 to $99,999.99
• Are those informal procurement methods where you must secure at least three(3) informal
bids.
• All price or rate quotations must be in writing.
• You must document the following information: Company name and address,name of person
contacted, telephone number and minority status.
• Use the Small/Informal Bid Form,with actual written quotations as collateral documentation.
• Not allowed for soliciting construction services.
Formal Bidding Procedures: $100,000 or above
• Are competitive sealed bids, secured through formal advertising.
• All bids will be publicly opened and a fixed price contract will be awarded to the lowest
responsive and responsible bidder.
Competitive Proposals:
• A Request for Proposal (RFP) or Request for Qualifications (RFQ) shall always be
advertised.
• The RFP should contain: bid specifications, sample contract, terms and conditions, and
mechanism for proposal most advantageous to the program, with price and other factors
considered.
Contracting with minority and Women Business Enterprise:
• Outreach program is extremely important.
• Contact at least on MWBE firm for your small purchase process.
• Require prime contractor to also comply with above.
EXHIBIT "1" TO ATTACHMENT "E"
SMALL/INFORMAL BID FORM
Project Name: Project Number:
Three Quotes Required For The Following Item(s):
Specifications:
Quantity: Size:
1. Company Name: Phone No:
Address: Contact:
MWBE Status:
Unit Cost: Total:
2. Company Name: Phone No:
Address: Contact:
MWBE Status:
Unit Cost: Total:
3. Company Name: Phone No:
Address: Contact:
MWBE Status:
Unit Cost: Total:
Bids Obtained By: Date:
ATTACHMENT "F"
GRANT OF SECURITY
For good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
Citrograph, LLC ("Participant") hereby irrevocably grants, transfers and assigns to City, in trust,
with power of sale,and right of entry and possession, for the benefit and security of City,all rights,
titles, interests,estates,powers and privileges that Participant now has or may hereafter acquire in or
to the following property and interests therein (collectively, the "Property"):
1. 1995 Shinohara 6611 Two Color Perfector Press
By my signature below, Participant accepts and approves securing performance under the
Microenterprise Assistance Program(MAP)Grant Agreement by and Between the City of Redlands
and Citrograph,LLC with the above listed property,and consents to the filing of a UCC-1 financing
statement by the City with the State of California, evidencing the securitization.
CITROGRAPH, LLC
t 2- -
Dated By
D. Hernandez, Partner\
B
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C. R • : .
CITY O REDLANDS
Microenterprise Assistance Program (MAP Grant)
for Small Businesses
A Community Development Block Grant Funded Program
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December 18, 2012
City of Redlands Page 1
Microenterprise Assistance Program (MAP Grant) Guidelines
1 .0 INTRODUCTION
1 .0.1 The objective of the Microenterprise Assistance Program (MAP) Grant is
to fulfill a need in the community; create opportunity for the establishment
and expansion of microenterprise businesses within the City of Redlands; to
create quality jobs, principally benefitting employees in the low-to-moderate
income levels; and to preserve and expand the City's tax base.
1 .0.2 Program procedures, manuals, forms, documents and agreements
shall be administered by the City's Development Services Director, or his
designees, in accordance with these program guidelines.
1 .0.3 The total amount of CDBG funds available to award in MAP Grants
each year is limited. Applications are accepted on a continuous, open
cycle until all funds are exhausted.
1 .0.4 The MAP Grant provides grants in amounts ranging from $5,000 to
$25,000 to eligible businesses that want to establish a business or expand an
existing business located within the City of Redlands. This is a grant, and does
not have to be repaid as long as all program terms are met.
1 .0.5 The MAP Grant was made possible through a Community Development
Block Grant (CDBG) from the U.S. Department of Housing and Urban
Development (HUD). CDBG funds are Federal funds and as such have a
number of Federal requirements that must be met as further described in this
document. MAP Grants are not from the City's general fund.
1 .1 ELIGIBILITY AND MINIMUM REQUIREMENTS
1 .1 .1 Microenterprise business applicants include private for-profit business
concerns including corporations, limited liability corporations, partnerships
(general and limited), or sole proprietorships that have legal standing as a
business and are licensed by the City of Redlands.
1 .1 .2 Non-profit organizations are not considered microenterprises for the
purposes of this program.
1 .1 .3 Applicants can also be individual persons/partnerships who wish to
start a business but have not completed all the steps to open their business.
A condition of funding for these applicants will be to have the business
development process completed, such that they can be recognized by the
City as a legal business. This can be documented by providing copies of a
City of Redlands Business License, fictitious business name or trade name, etc.
City of Redlands Page 2
Microenterprise Assistance Program (MAP Grant) Guidelines
1 .1 .4 To be eligible for the MAP Grant, the following minimum requirements
must be met:
a. Business must be located within the Redlands city limits.
b. Business must have five (5) or fewer employees, one (1) or more of
which must be the principal(s) who owns the business at the time of
application. All employees, part-time and full-time, on the business
payroll at the time of grant application will be counted. The term
"employee" includes all owners of the business on the payroll, even if
the owner's "salary draws" are not done on a regular basis.
c. The proposed project must meet a National Objective and be an
eligible activity under the Community Development Block Grant
(CDBG) Act. In general, the project must either:
1 . Be a business whose owner is certified as being low- to
moderate-income; or
2. Create/retain jobs.
d. The CDBG program requires that at least 51% of the jobs, computed on
a fulltime equivalent basis, created or retained must be held by or
made available to low- and moderate-income persons. The grant
applicant must acknowledge that if it fails to create and/or retain the
jobs identified in the agreement by the end of the project period and
maintain them for a period of time (usually 18 months from the date of
the award); it may be required to reimburse the City some or all of the
grant funds awarded as a result of the new employment shortfall.
e. In counting the jobs to be used in the calculation for determining the
percentage that benefit low-moderate income persons, the following
criteria apply:
• Part-time jobs must be converted to full-time equivalents (FTE).
• Only permanent jobs count; temporary jobs may not be
included.
• Jobs indirectly created by an assisted activity (spin-off jobs) or
jobs located outside of the City may not be counted.
1 .1 .5 The City will not provide grant assistance in situations where it is
determined that any representation, warranty or statement made in
connection with the MAP Grant application is incorrect, false, misleading or
erroneous in any material respect. In the event assistance has already been
provided prior to the discovery of incorrect, false, or misleading
representation, the City may initiate legal action to recover the funds.
1 .1 .6 Adult entertainment establishments, as defined in the Redlands
Municipal Code, are ineligible for a CDBG funded MAP Grant.
City of Redlands Page 3
Microenterprise Assistance Program (MAP Grant) Guidelines
1 .2 AMOUNT OF MAP GRANT REQUEST
1 .2.1 A MAP Grant can range from $5,000 to $25,000. The City will review the
level of grant assistance requested and will consider the appropriateness of
the project's scope, the level of demonstrated need and the financial
resources of the applicant. If the City determines that a lesser amount is
appropriate than the amount requested by the applicant, it may be
necessary to revise the application before it is submitted in final form. The
maximum award is not intended to serve as a target figure for requests for
grant assistance.
1 .3 USE OF PROGRAM FUNDS
1 .3.1 MAP Grant funds must be justified and be used directly by the
applicant to purchase capital goods; including machinery; fixtures;
equipment; and/or to provide working capital to support operations.
1 .3.2 MAP Grant funds may not be used to purchase portable equipment,
such as personal computers, adding machines, desks, desk chairs, etc.; real
estate; repay existing debt; undertake building facade or building interior
renovations; refinance loans made by other lenders; subsidize interest
payments on existing loans; lobbying any governmental entity; political or
religious activities; or make any investments or payments that are outside the
scope of the business.
1 .3.3 MAP Grant funds may not be used for job pirating. This is the use of
Federal funds to lure or attract businesses and its jobs away from one labor
market to another.
1 .3.4 All MAP Grant funding will be provided on a reimbursement basis.
1 .4 PRE-APPLICATION REVIEW
1 .4.1 A pre-application is required to be submitted to the City by all MAP
Grant applicants. A review of this pre-application by the City will determine if
the basic CDBG eligibility requirements exist in order to move forward in the
application review process.
1 .5 NON-REFUNDABLE APPLICATION FEE
1 .5.1 The City will review the pre-application and provide authorization to
continue. The application, along with all supporting documentation
(business plan, financial pro-forma, financial statements, tax returns,
information release authorization, budget, employment chart, etc., and a
City of Redlands Page 4
Microenterprise Assistance Program (MAP Grant) Guidelines
non-refundable S100 application fee (to cover the costs of obtaining a
current credit report and other hard costs necessary for the application
review and qualification process) will be required in order to move the
application forward in the review process.
1 .6 ENVIRONMENTAL REVIEW
1 .6.1 National Environmental Policy ACT (NEPA) regulations require an
Environmental Review Record (ERR) to be submitted for each
project/business funded with CDBG monies prior to award or approval of
funds. The ERR level of review is based on the type of project proposed.
1 .6.2 The environmental review must identify and address the physical,
social and economic impacts of the entire proposed activity. The
environmental review process must consider the impacts of the entire
proposed activity.
1 .6.3 Compliance with any other federal, state, county, or local
environmental regulations, such as California Environmental Quality Act
(CEQA), may also be required and will be based upon a review of the entire
proposed activity.
1 .7 PROCUREMENT
1 .7.1 Federal procurement standards must be utilized by grantees when
procuring services, supplies, or equipment that maximize free and open
competition and the efficient, economical use of the CDBG funds.
1 .8 APPLICATION REVIEW
1 .8.1 MAP Grant applications shall be reviewed and evaluated based upon
the following guidelines from the U.S. Department of Housing and Urban
Development (HUD), Office of Community Planning and Development and
by the Small Business Administration (SBA):
a. Ability to repay the MAP Grant in case of default or termination
of business based upon the following criteria:
1. Balance Sheet Analysis
2. Historical Earnings and Cash Flow Records
3. Collateral
4. Commitment
5. Management Experience
6. Direct Experience
City of Redlands Page 5
Microenterprise Assistance Program (MAP Grant) Guidelines
7. Business Plan
All of the above criteria are important, and the absence of any one of the
above criteria may be sufficient to deny a grant request.
b. The following conditions are considered undesirable without
mitigating circumstances:
1. Requests for a grant to repay existing creditors;
2. Funds used to repay debt to applicant owner(s), partners,
stockholders;
3. Lack of profitable operations;
4. Grants to businesses with restricted membership or
discriminatory groups/organizations;
5. Lack of sufficient equity/highly leveraged situations;
6. Personal or business bankruptcy, or prior business failure
without sufficient, documented information to mitigate;
7. Poor personal or business credit as evidenced by many
derogatory items including public record items, tax liens,
judgments, or excessive existing credit;
8. Undocumented aliens;
9. Felony convictions, dishonorable discharge or "Bad
Conduct" discharge from military service (each situation
will be independently evaluated); and
10. Business active in any unlawful activity.
1 .9 CONFLICT OF INTEREST
1 .9.1 In accordance with Title 24, Section 570.611 of the Federal Regulations,
no member of the governing body and no official, employee or agent of the
local government, nor any other person who exercises policy or decision-
making responsibilities in connection with the planning and implementation
of the CDBG program shall directly or indirectly be eligible for this program.
1 .10 RELOCATION
1 .10.1 Any MAP Grant request that would result in displacement of a person
or a business, as defined by Federal or state relocation laws, is not eligible for
a MAP Grant.
City of Redlands Page 6
Microenterprise Assistance Program (MAP Grant) Guidelines
1 .11 NON-DISCRIMINATION
1 .11 .1 Discrimination by the City against any applicant because of race,
color, sex or sexual orientation, religion, age, national origin, disability or
veteran's status is prohibited by law. The City actively supports this legislation.
1 .12 APPLICANT CONFIDENTIALTIY
1 .12.1 Employees of the City will not disclose any of the grantee's personal
confidential information as part of the grant approval process. Financial
information supplied by the applicant, including but not limited to business
operating statements, tax information, personal and business financial
information, and similar data are considered to be confidential. All
confidential information of businesses will only be disclosed to persons
required to view the information as part of grant review and approval. All
personal and business confidential information of grant applicants will be
kept in a locked, secured storage facility and unavailable to persons outside
of the program. If the City receives a request for public records related to a
grant application, only non-confidential information, as verified by the City
Attorney, will be provided.
1 .13 DEFAULT
1 .13.1 The following circumstances will be determined to be "Events of
Default" which could trigger either full or partial repayment of the MAP
Grant:
a. If representations, conditions or warranties made by the MAP
Grant recipient prove to be incorrect in any material respect
when made or changed so that the statement becomes
incorrect, whether voluntarily or involuntarily.
b. Grant recipient fails to complete Entrepreneurial Training as
defined in article 1 .16.1 .
c. Grant recipient fails to create or retain at least 80% of the job
requirements specified in the agreement.
d. Grant recipient fails to meet the minimum of 51% of new jobs
being made available to low- and moderate-income persons.
1 .14 DATA UNIVERSAL NUMBERING SYSTEM (DUNS)
1 .14.1 A DUNS number is required for all businesses who wish to receive a
Federally funded MAP grant. The DUNS number is free and can be obtained
online at: http://fedgov,dnbcorn/webform.
City of Redlands Page 7
Microenterprise Assistance Program (MAP Grant) Guidelines
1 .15 INCOME AND DEMOGRAPHIC DATA COLLECTION
1 .15.1 Annual income level, household size, and demographic data, such as
racial and ethnic background, must be collected by the grantee and
provided to the City for any new hires resulting from the investment of CDBG
funds in accordance with HUD requirements during the term identified in the
funding agreement.
1 .16 REQUIREMENT TO ATTEND ENTREPRENEURIAL TRAINING
WORKSHOPS
1 .16.1 To help alleviate risk and assure success, all MAP Grant recipients,
independent of existing skills and experiences, must attend a minimum of
three (3) City of Redlands sponsored small business educational workshops
(or other pre-approved business training workshop sponsored by another
organization) of their choosing within a one year period.
1 .17 SITE AVAILABILITY
1 .17.1 The grantee agrees to make the property/business available during
reasonable hours to the City for monitoring and inspection purposes
throughout the term defined in the agreement.
1 .18 ADDITIONAL INFORMATION
1 .18.1 Upon review of a submitted application, the City reserves the right to
request additional information in order to assist the City with its evaluation of
an application.
1 .19 PROGRAM ELIGIBILITY
1 .19.1 CDBG funded MAP Grants are limited to one per business. However, a
MAP Grant recipient may also qualify to receive a CDBG funded Economic
Development Loan.