APPROVED AS TO FORM AND LEGALITY
________________________
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
RESOLUTION NO. _______________ C.M.S.
RESOLUTION:
(1) ACCEPTING AND APPROPRIATING FIVE-HUNDRED AND
FIFTY THOUSAND DOLLARS ($550,000) AWARDED TO THE
CITY OF OAKLAND BY THE U.S. DEPARTMENT OF
COMMERCE’S ECONOMIC DEVELOPMENT
ADMINISTRATION (EDA) FOR THE PURPOSE OF FUNDING
THE CITY’S SMALL BUSINESS REVOLVING LOAN FUND FOR
ZERO PERCENT (0%) INTEREST LOANS MADE BY JUNE 30,
2022 IN AN AMOUNT NOT TO EXCEED ONE HUNDRED
THOUSAND DOLLARS ($100,000) EACH; AND
(2) AUTHORIZING THE CITY ADMIN ISTRATOR TO NEGOTIATE
AND AWARD A PROFESSIONAL SERVICES AGREEMENT
WITH PACIFIC COMMUNITY VENTURES IN AN AMOUNT NOT
TO EXCEED EIGHTY THOUSAND DOLLARS ($80,000) FOR A
ONE YEAR TERM TO ADMINISTER THE CITY’S SMALL
BUSINESS REVOLVING LOAN FUND PURSUANT TO A
COMPETITIVE PROCESS
WHEREAS, in 1988, the City of Oakland developed a revolving loan fund (RLF) utilizing a grant from the U.S. Department of Commerce’s Economic Development Administration (EDA) and Community Development Block Grant (CDBG) funding; and
WHEREAS, the City’s RLF has remained dormant over the past several year s given funding availability and staffing support, and there is an existing RLF fund balance of $200,0000; and
WHEREAS, in response to the COVID-19 pandemic, the Federal government through the Coronavirus Aid, Relief, and Economic Security (CARES) Act disb ursement to the U.S.
Department of Commerce’s Economic Development Administration, m ade available a $550,000 non-competitive revolving loan fund recapitalization grant to t he City’s existing EDA RLF program; and
WHEREAS, Oakland Municipal Code (OMC) section 2.07.020 requires City Co uncil approval of all grant awards made from money or funds donated, given or granted to the City from any public or private source regardless of the amount of grant award; and 2 WHEREAS, OMC section 2.04.051.A. requires that the City conduct a compe titive Request for Qualifications/Propos als (RFQ/P) selection process for the award of professional contracts that exceed Fifty Thousand Dollars ($50,000) and are exempt from bidding under OMC section 2.04.050.1.1; and
WHEREAS, on August 20, 2021, the City issued a competitive RFP for a contract with a community development financial institution (CDFI) to provide loan packaging, business financial support, and technical assistance for small business lending; and
WHEREAS, Pacific Community Ventures (PCV), an Oakland based 501(c)(3) no nprofit social enterprise and CDFI, was selected based on the comprehen siveness of their services, their competitive administrative fees, and active lending in Oakland with a focus on small businesses lending and financial services since 2002; and
WHEREAS, the current RLF program provides for a minimum 4% interest rate , and the EDA RLF program administrator h as temporarily approved the City ’s request for a 0% interest rate for loans that are made by June 30, 2022; now, therefore, be it
RESOLVED: That the City accept and appropr iate Five-Hundred and Fifty T housand Dollars ($550,000) awarded to the City of Oakland by the U.S. D epartment of Commerce’s Economic Development Administration for the purpose of funding the City’s small business revolving loan fund for a total RLF fund balance of Seven Hundr ed and Fifty Thousand Dollars ($750,000) for Zero Percent (0%) interest loans made by June 30, 2022 in an amount not to exceed One Hundred Thousand Dollars ($100,000) each, and any remaining loans made after June 30, 2022 shall be subject to the current RLF program’s minimum 4% interest rate; and be it
FURTHER RESOLVED: That the City Administrator i s authorized to negotiate and award a professional services a greement with PCV in an amount n ot to exceed Eighty Thousand Dollars ($80,000) to administer th e City’s small business revol ving loan fund pursuant to a competitive process for a one year term with one two-year optio n to renew depending upon performance and renewed funding; and be it
FURTHER RESOLVED: That the EDA grant funds will be deposited in the Department of Commerce Fund (2104), Economic Development (85411), Project (TBD), Federal Grant:
Miscellaneous (46129); and be it
FURTHER RESOLVED: That prior to execution, all contracts and grant agreements shall be reviewed and approved as to form and legality by the City Attorney, and executed copies shall be filed with the City Clerk; and be it
3 FURTHER RESOLVED: That this Resolution shall ta ke effect immediately upon its passage.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES - FIFE, GALLO, KALB, KAPLAN, REID, TAYLOR, THAO AND
PRESIDENT FORTUNATO BAS
NOES –
ABSENT –
ABSTENTION –
ATTEST:
ASHA REED
City Clerk and Clerk of the Council of the
City of Oakland, California