HomeMy WebLinkAboutContract 17591 CITY SECRETARY
WNTRACT N
AMENDMENT TO CITY SECRETARY NO. 17242
WHEREAS, the City of Fort Worth ("City") and the Fort Worth
Economic Development Corp. ("Contractor") have entered into City
Secretary Contract No. 17242 , under the terms of which Contractor
provides business loans to qualified businesses in Fort Worth;
and
WHEREAS, the parties desire to amend the contract so that in
addition to Community Development Block Grant funds provided by
City to fund Contractor's services, Contractor may use program
fees to fund its activities;
W I T N E S E T H:
That the City of Fort Worth acting by and through Ramon
Guajardo, its duly authorized Assistant City Manager and the Fort
Worth Economic Development Corp . , acting by and through Leroy
Sullivan, its duly authorized President , hereby covenant and
agree as follows :
1 .
City Secretary Contract No. 17242 , on file in the office of
the City Secretary of the City of Fort Worth is hereby amended by
adding to Section 2 thereof the following terms :
"In addition to other CDBG funds to be used by
Contractor for program administrative expenses ,
Contractor may use an amount not to exceed $2 , 200 .00 of
funds generated from fees charged to program
participants. Collection and expenditure of these fees
1
must be included in monthly reports submitted by
Contractor to City under the terms of this Contract . "
2 .
All other terms and conditions contained in City Secretary
Contract No. 17242 not expressly amended shall remain in full
force and effect .
IN WITNESS WHEREOF, the parties hereto have executed four
copies of this contract in Fort Worth, Tarrant County, Texas ,
this �?"ay of
ATTEST CITY OF FORT WORTH
B y
Ramon Guajardo
Assistant City Manager
APPROVED AS TO FORM AND LEGALITY: --' C �'i
A t�antrac Authoriz on
ity At rney Date
Date:
ATT T. FORT WORTH ECONOMIC
471/ DEVELOPMENT CORPORATION
Leroy Sullivan
2
3tER FILE•1 or WL: L
>9COUNTING-2 City ®f Fort Worth TLLWY
TRANSPORTATIONIPU BLIC WOR Ljj�
l�I
.ATER ADMINISTRAT Ma lLJ/®'U ' and Council Communication
m IViVnication
HOUSINC A HUMAN SERVICS0
DATE REFERENCE SUBJECT: CITY SECRETARY CONTRACT AMEND- PAGE
NUMBER MENTS - FORT WORTH ECONOMIC DEVELOP- 3
10-10-89 **C-11918 MENT CORP. AND HISPANIC CHAMBER OF °f
COMMERCE
RECOMMENDATION:
It is. recommended that the City Council authorize the City Manager to:
1. Execute an amendment to City Secretary Contract No. 17242 with the Fort
Worth Economic Development Corporation (FWEDC) to allow the FWEDC to
collect and use for program administration up to $2,200 in program fees
to be earned by the Revolving Loan Fund Program; 1--j
2. Execute an amendment to City Secretary Contract Noe. 17168 with the Fort
Worth Economic Development Corporation (FWEDC) to allow the FWEDC to
collect and use for program administration up to $1,875 in program fees
to be earned by the Business Assistance Program; and
3. Execute an amendment to City Secretary Contract No. 17132 with the
Hispanic Chamber of Commerce (HCC) to allow the HCC to collect and use
for program administration up to $4,000 in program fees to be earned by
the Minority Procurement Program (MPP) .
DISCUSSION:
Fort Worth Economic Development Corporation (FWEDC) - Revolving Loan Fund
i Administration
FWEDC provides administrative services for the Revolving Loan Program which
is designed to provide fixed-rate, long-term, flexible financing at a reason-
able price to small and minority businesses located within the four CNR areas
or to those businesses interested in locating within the CNR areas , Near
North, Riverside, Near Southeast, and Mid-South.
FWEDC' s use of $113,082 in program income (interest payments from loans) for
administration of the Commercial Development Revolving Loan Program from
June 1 , 1989 to May 31 , 1990 was approved by M&C C-11608 on April 25, 1989.,
"The FWEDC is charging fees for loan packaging services provided to clients at
a rate of $100 per loan package. It is anticipated that the program will
earn $2,200 in fees which it proposes to use to supplement the $113,082 . The
fee income will be used for dues, subscriptions and publications, rent, legal
and accounting services, advertising, conferences and out-of-town auto
allowance.
Fort Worth Economic Development Corporation (FWEDC) Business Assistance
This program is designed to provide management advice and technical assis-
tance to 160 minority businesses city-wide and small non-minority businesses
located in the target areas.
t j
DATE REFERENCE SUBJECT: CITY SECRETARY CONTRACT AMEND . °a• PAGE,,,
NUMBER MENTS - FORT WORTH ECONOMIC DEVELOP 2 3
10-10-89 **C-11918 MENT CORP. AND HISPANIC CHAMBER OF
COMMERCE r
Use of $70 ,852 in Year' XV funds was approved by M&C C-11609 on April 25,
1989, for the FWEDC' s Business Assistance Program from June 1 , 1989 to
May 31 , 1990. The Business Assistance program is charging fees for services
to clients such as technical and marketing assistance, at $10 per hour and
the sale of educational business publications to clients at $5 each.' It is
anticipated that the program will earn $1,875 which it proposes spending for
operating supplies , dues, subscriptions and 'publications , printing ,
advertising and conferences and seminars.
Fort Worth Hispanic Chamber of Commerce - Minority Procurement Program
This program is designed to provide services to expand business opportunities
for approximately 75 minority businesses located within the city limits of
Fort Worth.
Use of $70,852 in Year XV CDBG grant fund's was approved by M&C C-11609 on
April 25, 1989, for the Hispanic Chamber of Cominerce' s Minority Procurement
Program from June 1 , 1989 to May 31, 1990. The Minority Procurement Program
is charging fees for technical and marketing services provided to clients .
These fees and services include: a $40 fee for business identification/
membership fee; a $20 'fee for marketing strategy and development; a_$10 fee
for introductory letters; a $20 fee for consultation in financing; a $20 fee
for consultation on business start-up; and a $10 per hour fee for preparation
of bids . It is anticipated that the program will earn $4,000 in fees which
it proposes spending for health insurance, office supplies , postage, tele-
phone services, printing, and seminars and conferences to supplement its pre-
viously approved budget.
Since FWEDC ' s Business Assistance Program and the Hispanic Chamber of
Commerce' s Minority Procurement Program both provide technical assistance to
for-profit businesses , they are now being required by the Department of
Housing and Urban Development (HUD) to maintain documentation not required in
past years showing that the assistance provided to businesses is both neces-
sary and appropriate. This documentation is intended to allow HUD to deter-
mine that the grantee is reasonably ensuring that the amount of assistance
provided to a for-profit business for an economic development activity will
not be excessive, taking into account both the actual needs of the business
in making the project financially feasible and the extent of public bene-
fit to be derived from the project . The' grantee is required to conduct a
"necessary or appropriate" analysis and to document the creation 'and retention o'f jobs , or other public benef it, provided as a result of th'e
technical assistance..
The Community Development Council approved the use of fees and interest
income as described 'and in the amounts estimated at 'their regularly scheduled
meeting on September 11, 1989.
DATE REFERENCE SUBJECT: CITY 'SECRETARY CONTRACT AMEND- PAGE
NUMBER
10-10-89 **C-11918 MENTS - FORT WORTH .ECONOMIC DEVELOP- 3 f- 3
MENT CORP. AND HISPANIC CHAMBER OF
COMMERCE
FINANCING:
The additional funding for the above projects is contingent on the actual
collection of fees and interest income earned. No additional CDBG funds are
involved.
RG:j
APPROVED BY
CITY COUNCIL
OCT 10 i9eq
U
City Secretary of the
City of Fort Worth,Texaq
SUBMITTED FOR THE
CITY MANAGER'S DISPOSITION BY COUNCIL: PROCESSED BY
I
OFFICE BY: Ramon Guajardo ❑ APPROVED
ORIGINATING ❑ OTHER (DESCRIBE)
DEPARTMENT HEAD: Sandra Gonzales CITY SECRETARY
FOR ADDITIONAL INFORMATION
CONTACT: • J. Pistole .7336 DATE