RES 1999-1120 - Contract with New Community Development Corporation for micro enterprise program d
t -
—
O �tAAHA,Ne� Planning Department
��c •4; RECEIVE Omaha/Douglas Civic Center
Otfrr i►,�.� 5d. 1819 Farnam Street,Suite 1100
v®A,r� {i F 99 APR 22 PH 1: 46 Omaha,Nebraska )68183-011083-- 0
p F. you. ..ry
�i (402)444-5150
O4TEp CITY Y CLERK Telefax(402)444-6140
City of Omaha U M . HA. NENEBRASKA Robert C.Peters
Hal Daub,Mayor April 27, 1999 •
Acting Director
Honorable President
and Members of the City Council,
The attached proposed Resolution recommends the approval of an agreement between the New
Community Development Corporation (NCDC) and the City of Omaha for the continuation of the
Microbusiness Program. The Agreement provides $81,644.26, consisting of$21,644.26 from the
1998 carryover and$60,000.00 from the 1999 allocations. The appropriation is for administration
and participant training on starting a business/business plan development. The program will receive
an additional $100,000.00 for loans from other sources. •
The New Community Development Corporation has been very successful in implementing the
Microbusiness Program. For the calendar year ending December 31, 1998, they were successful in
creating seven (7)jobs; provided seven 8-week and two 6-week training sessions that generated
approximately 49 self-employment opportunities;completed 24 business plans; 10 loans were made
for$17,974.78 which leveraged an additional$7,423.00; and ninety(90)participants graduated from
the training program.
The Microbusiness Program is an innovative approach to assist in providing training and creating
new employment opportunities for home-based small businesses.
The contractor has on file a current Annual Contract Compliance Report Form(CC-1). As is City
policy, the Human Relations Director will review the contractor to ensure compliance with the
Contract Compliance Ordinance.
Your favorable consideration of this Resolution will be appreciated.
Sincerely, Referred City Cou, it for Consideration:
y/77, 7
Robert C. Peters /(€ Date Mayor'sOffice/Title Date
Acting Planning Director
.proved: Ar ved:
itt 4/6/71
Louis A. D'Ercole �'� Date/ eorgel . vis, Jr. Date
Finance Director Human L elations Director
P:\PLN3\7030.MAF
r`.
AGREEMENT
THIS AGREEMENT is entered into by and between the City of Omaha, a Municipal
Corporation, in Douglas County, Nebraska, also referred to as "CITY" and the New Community
Development Corporation, 3147 Ames Avenue, Omaha, Nebraska, a Nebraska non-profit
corporation, sometimes hereinafter called "CONTRACTOR".
RECITALS: •
WHEREAS,the primary objective of the Housing and Community Development Act of 1974,
as amended, is the development of viable urban communities, by providing decent housing, a
suitable living environment, and creating and expanding economic opportunities, principally for
persons of low and moderate income; and,
WHEREAS, the City annually receives Community Development Block Grant funds under
Title I of the Housing and Community Development Act of 1974, as amended, for the purpose of
benefiting low and moderate income residents, eliminating slum and blight and for other urgent
community and economic development needs; and,
WHEREAS, the City of Omaha, pursuant to Title I of the above-referenced Act, undertakes
and encourages housing and community development activities in a coordinated and mutually
supportive manner with comprehensive local and area-wide development planning; and,
WHEREAS,the Nebraska Legislature has declared that the redevelopment and rehabilitation
of commercial,industrial and residential areas of the City,which are older and have deteriorated, are
a matter of public concern and constitute a public use and public purpose for which public monies
may be expended; and,
WHEREAS,the U.S. Department of Housing and Urban Development has authorized the use
of CDBG funds for the establishment of a Micro Enterprise Program; and,
WHEREAS, a major objective of the Community Development Block Grant Program of the
City of Omaha is the economic development of distressed areas; and,
WHEREAS, a determination has been made that the program of the New Community
Development Corporation will benefit low and moderate income persons based on the creation of
new businesses with employment made available to low and moderate income persons; and,
WHEREAS,the New Community Development Corporation is organized to aid in generating
new jobs in distressed areas by providing technical assistance and by creating a Micro Enterprise
Program; and,
WHEREAS, the New Community Development Corporation is capable of and desirous of
administering a Micro Enterprise Program as outlined in this Agreement; and,
WHEREAS, the fundamental goals of the New Community Development Corporation in
administering this program are to:
1. Create and support a new classification of entrepreneurs by helping disadvantaged
persons become self-sufficient and start small home-based businesses.
2. Enable owners of small businesses to become self-sufficient through self-
employment.
3. Create self-employment opportunities and increase the employability of
participants during the program period.
WHEREAS, it is in the best interest of the citizens of Omaha to develop new economic
development and job creation programs; and,
WHEREAS,it is necessary for the City to enter into an Agreement with the New Community
Development Corporation to help achieve these goals.
- 2 -
IN CONSIDERATION OF THESE MUTUAL COVENANTS, the New Community
Development Corporation and the City of Omaha agree as follows:
SECTION 1. Definitions - Abbreviations
The following definitions and abbreviations shall be applicable to this Agreement:
1.1 "NCDC" shall mean the New Community Development Corporation, 3147 Ames
Avenue, Omaha, Nebraska 68111-2760.
1.2 "City" shall mean the City of Omaha, a Nebraska Municipal Corporation.
1.3 "Contractor" shall mean the New Community Development Corporation.
1.4 "Micro Enterprise Program" shall mean the Micro Enterprise Program capitalized with
allocated CDBG program funds. The funding for the New Community Development
Corporation Micro Enterprise Program is predicated on receipt of funding from the U.S.
Department of Housing and Urban Development(H.U.D.). We will fund the budgeted
amount reflected in our 1999 Consolidated Plan for the New Community Development
Corporation of$60,000.00 and authorize the $21,644.26 in 1998 carryover funding.
1.5 "CDBG" shall mean the Community Development Block Grant Program of the City of
Omaha.
1.6 "Socially or economically disadvantaged" shall mean all who are hampered in achieving
full citizenship in our economic system by virtue of their social or economic
disadvantages. Congress has not fully defined the words "socially or economically
disadvantaged" and this lack of precise legislative definition suggests that a precise
definition is inappropriate, and that flexibility is warranted (see Section 7).
1.7 "Recipient" shall mean the City of Omaha.
1.8 "Program Income" shall mean gross income received by the Recipient or a Subrecipient
directly generated from the use of CDBG funds. When such income is generated by an
activity that is only partially assisted with CDBG funds, the income shall be prorated
to reflect the percentage of CDBG funds used(Exhibit "B").
1.9 "Subrecipient" shall mean a public or private nonprofit agency,authority or organization
receiving CDBG funds to undertake eligible activities. In this Agreement the
Subrecipient is the New Community Development Corporation.
- 3 -
SECTION 2. Duties of the City
The City shall:
2.1 Review and monitor the quarterly reports that identify the progress/accomplishments of
the NCDC on the activities included in this Agreement and on contracts entered into
with third parties pursuant hereto.
2.2 Grant a total of$81,644.26 to NCDC for administrative expenses and training support
for the Micro Enterprise Program. $100,000.00 will be provided from private resources
to fund loan activities described herein for the period January 1, 1999, through
December 31, 1999. The CDBG Program funds may be drawn down to meet actual
approved costs incurred by New Community Development Corporation, Inc., as
required. Disbursements will be based on the submission of Quarterly Reports and
Requests for Payment.
2.3 Cooperate with NCDC and coordinate activities associated with the implementation of
the scope of work.
2.4 Prepare quarterly payment vouchers for the NCDC based upon Quarterly Progress
Reports and Requests for Payment.
2.5 Require NCDC, Inc. to remit all principal and interest from loan repayments funded
with CDBG Program dollars to the City quarterly.
SECTION 3. Duties of the Contractor
The Contractor shall:
3.1 Provide services for clients under the Micro Enterprise Program as required in the Scope
of Work Summary as attached hereto and made a part hereof as though recited herein
(Exhibit "A").
3.2 Control the expenditure of dollars to ensure funds are allocated on a performance based
contract to ensure desired results.
3.3 Maintain fiscal integrity of the programs, which include all financial and narrative
reports required by the City of Omaha, and the U.S. Department of Housing and Urban
Development.
3.4 Assume responsibility for preparing or assisting in the collection of all reports and other
information required.
3.5 Assume responsibility for follow-up actions required for all clients receiving assistance
under this program.
- 4 -
3.6 Acquire bonding in the amount of $100,000.00 for NCDC Board of Directors and
employees entrusted with the handling of funds pursuant to this Agreement.
3.7 Submit a quarterly progress report to the City of Omaha, Director of Planning. The
progress report will delineate activities for the previous 90-day period.
3.8 Submit a quarterly program financial report(income statement) delineating the revenue
and line item expenditures for the NCDC. In addition, a monthly check register is to be
submitted reflecting payee, date, amount, and check number.
3.9 Comply with all provisions and regulations of the Community Development Block
Grant Program and have an annual audit completed in compliance with OMB Circular
A-128 and A-133 as appropriate. A copy of this audit shall be provided to the Director.
The audit must be completed within 120 days after the annual year end.
3.10 Maintain such records and accounts,including property,personnel and financial records,
as are deemed necessary by the City to assure a proper accounting for all contract
expenses. The Comptroller General of the United States,or any of their duly authorized
representatives,or any duly authorized representative of the City of Omaha,as approved
by the Planning Director, shall have access to any books,documents,papers and records
of the Contractor or Subcontractor which are directly pertinent to this project for the
purpose of making audit, examination, excerpts and transcriptions. Such records and
accounts shall be retained for five years from the contract period completion. Any
contract entered into by the Contractor with any Subcontractor shall include this Section
to ensure said access.
3.11 NCDC specifically hereby states, agrees and certifies that it is familiar with the limited
purpose set forth in the Federal laws,rules and regulations, and in the laws of the State
of Nebraska for which personal information requested may be used, and that the
information received will be used solely for those limited purposes and not to harass,
degrade or humiliate any person. The information released shall be used for the limited
purpose stated, and NCDC further agrees to indemnify and hold harmless the City of
Omaha for any liability arising out of the improper use of the information provided.
3.12 The staff of NCDC will ensure that the services will only be provided to individuals
and/or businesses meeting program guidelines.
3.13 Require loan applicants to sign a written agreement that the loan application and all
financial data and projections supporting the application and the financial viability of
the applicant, may be reviewed by a subcommittee of the City Council at the NCDC
location. NCDC will retain appropriate records concerning each loan approved or
disapproved.
3.14 The staff of NCDC must document method used to identify and select the participants
and the specific strategy used to help participants achieve specific goals.
- 5 -
3.15 NCDC must ensure that the following information is provided on a quarterly basis:
a. Number of business plans prepared.
b. Number,type, and dollar value of loan applications prepared and funded and
the amount of funds available to loan.
c. Number of loans denied and reasons for denial.
d. Analysis and recommendations to improve performance based on prior
quarters' accomplishments/failures.
e. Number of participants and type of training provided.
f. Number of jobs and self-employment opportunities created as a result of
each outstanding loan.
SECTION 4. Consideration
4.1 In consideration of the program services herein provided, the City agrees to pay the
NCDC, Inc. the sum of $81,644.26 for training, business plan development and
administrative services ($100,000.00 will be provided from other sources for loan fund
capitalization)from the Community Development Block Grant,Fund 193,Organization
Number 8328, Economic Development. The funding for the New Community
Development Corporation Micro Enterprise Program is predicated on receipt of funding
from the U.S. Department of Housing and Urban Development(H.U.D.). We will fund
the budgeted amount reflected in our 1999 Consolidated Plan for the New Community
Development Corporation of $60,000.00 and authorize the carryover amount of
$21,644.26.
4.2 Reimbursement for administration and training costs shall be made quarterly based on
the submission of quarterly reports and requests for payment. Reimbursements shall be
for actual expenditures. Loan funds will be disbursed based on the submission of
documentation supporting the loan approvals.
4.3 Quarterly billing shall be submitted by NCDC with the Quarterly Progress Report. The
quarterly billing and Progress Report is due no later than fifteen (15) days following
each quarterly reporting period.
SECTION 5. Term
This Agreement shall be in full force and effect from January 1, 1999, through December 31,
1999.
- 6 -
• r
SECTION 6. Provisions of the Contract
6.1 Equal Employment Opportunity/Affirmative Action Plan. Referenced herein as Exhibit
"E" and Exhibit "F" and made a part hereof by reference are the equal employment
provisions of this Agreement. •
6.2 Non-discrimination. The Contractor shall not in the performance of this contract,
discriminate or permit discrimination in violation of federal or state laws or local
ordinances because of race,color, sex, age, political or religious opinions, affiliations,
or national origin.
6.3 Captions. Captions used in this contract are for convenience and are not used in the
construction of this contract.
6.4 Applicable Law. Parties to this contract shall conform with all existing and applicable
city ordinances, resolutions, state laws, federal laws, and all existing and applicable
rules and regulations. Nebraska law will govern the terms and the performance under
this contract.
6.5 Interest of the City. Pursuant to Section 8.05 of the Home Rule Charter, no elected
official or any officer or employee of the City shall have a financial interest, direct or
indirect, in any City contract. A violation of this section with the knowledge of the
person or corporation contracting with the City shall render the contract voidable by the
Mayor or Council.
6.6 Modification. This contract contains the entire agreement of the parties. No
representations were made or relied upon by either party other than those that are
expressly set forth herein. No agent, employee or other representative of either party is
empowered to alter any of the terms herein unless done in writing and signed by an
authorized officer of the respective parties.
6.7 Assignment. The Contractor may not assign its rights or obligations under this contract
without the express prior written consent of the City.
6.8 Strict Compliance. All provisions of this contract and each and every document that
shall be attached shall be strictly complied with as written,and no substitution or change
shall be made except upon written direction from authorized officers of the parties.
6.9 Termination. This Agreement may be terminated by either party upon thirty (30) days
written notice to the other party. Said notice shall be given when received by certified
mail at the other party's usual place of business. Upon teimination of this Agreement,
all funds and interest in any account hereunder become the property of the City and shall
be returned to the City of Omaha. This Agreement may also be suspended or terminated
in accordance with 24 CFR 85.43, Enforcement or 24 CFR 85.44, Termination for
Convenience (Exhibit "G").
- 7 -
6.10 Subrecipients. Shall comply with the requirements and standards of OMB Circular No.
A-122. "Cost principles for the Non-profit Organizations" (Exhibit "H").
6.11 Other Program Requirements. The Subrecipient shall be required to carry out each
activity of this Agreement in compliance with all Federal laws and regulations described
in Subpart K of the CDBG Program Entitlement Grant Regulations Handbook 6500
(Exhibit "I").
6.12 Reversion of Assets. Upon the expiration of this Agreement, the Subrecipient shall
transfer to the City of Omaha any CDBG funds on hand at the time of expiration and
any accounts receivable attributable to the use of CDBG funds. Additionally, any real
property under the Subrecipient's control that was acquired or improved in whole or in
part with CDBG funds in excess of$25,000.00 is either:
(i) Used to meet one of the national objectives in 24 CFR 570.208 until five
years after expiration of the Agreement, or such longer period of time as
determined appropriate by the Recipient; or,
(ii) Is disposed of in a manner which results in the Recipient being reimbursed
in the amount of the current fair market value of the property less any portion
thereof attributable to expenditures of non-CDBG funds for acquisition of,
or improvement to, the property. Such reimbursement is not required after
the period of time specified in accordance with(i) above.
6.13 NCDC shall indemnify and hold the City harmless from and against: (1) any and all
claims arising from contracts between NCDC, Inc. and third parties made to effectuate
the purposes of this Agreement; and, (2) any and all claims, liabilities or damages
arising from the preparation or presentation of any of the work covered by this
Agreement.
6.14 If through any cause NCDC shall fail to fulfill in a timely and proper manner any
obligations under this Agreement, or violate any of the covenants, representations or
agreements hereof,the City may upon written notice terminate this Agreement or such
parts thereof as to which there has been a default, subject to the provisions of this
Agreement, and may hold NCDC, Inc. liable for any damages caused to the City by
reason of such default and termination.
6.15 Any provisions of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction,be ineffective to the extent of such prohibition
of enforceability without invalidating the remaining provisions hereof or affecting the
validity or enforcement of such provision in any other jurisdiction.
6.16 This Agreement shall be a contract made under and governed by the laws of the State
of Nebraska.
6.17 The Corporation certifies, to the best of its knowledge and belief, that:
- 8 -
6.17.1 No Federal appropriated funds have been paid or will be paid,by or on behalf
of NCDC, Inc., to any person for influencing or attempting to influence an
officer or employee of Congress, or an employee of a Member of Congress
in connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into of any
cooperative agreement,and the extension,continuation,renewal, amendment
or modification of any Federal contract, grant, loan, or cooperative
agreement.
6.17.2 If any funds other than Federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of
Congress, or any employee of a Member of Congress in connection with this
Federal contract,grant, loan, or cooperative agreement,the undersigned shall
complete and submit Standard Form-LLL, "Disclosure Form to Report
Lobbying", in accordance with its instructions.
6.17.3 The language of this certification be included in the award documents for all
subawards at all tiers (including subcontracts, subgrants,and contracts under
grants, loans, and cooperative agreements) and that all subrecipients shall
certify and disclose accordingly.
SECTION 7. Procedures Relating to Eligibility Determinations of Disadvantaged Business/
Individuals
In determining whether small business concerns or individuals are socially or economically
disadvantaged,reliance should not be placed upon a single factor,but on a composite of such factors
as the social or economic background of the principal owners,controlling individuals and managers
of the concern, along with the general pattern of their life, opportunities and education which have
prevented them from obtaining financial or other assistance available to the average entrepreneur in
the economic mainstream. Such persons may often include, but are not limited to, Blacks, Indians,
Eskimos,Aleuts, and persons of Mexican, Puerto Rican,Cuban,Filipino, or Oriental extraction. In
determining whether the owners of small business concerns are "disadvantaged",consideration may
be given to the following factors:
a. Low income.
b. Unfavorable location such as urban ghettos or depressed rural areas and areas of high
unemployment or underemployment.
- 9 -
} a
c. Limited education.
d. Physical or other special hardships.
e. Inability to compete effectively in the marketplace because of prevailing or past
restrictive practices.
7.1 The administrative finding by NCDC should disclose that the individual falls within the
eligibility category of social or economically disadvantaged. The fact behind this
finding can include such matters as depicted in the following examples which, alone or
together, might justify the finding; there are other situations which undoubtedly would
also apply:
7.1.1 Because of his social background, the individual has been unable to obtain
technical assistance,business assistance or financing of a quality or quantity
similar to that available to the average entrepreneur in the economic
mainstream.
7.1.2 Because of past practices of discrimination, the individual has been impeded
from normal entry into the economic mainstream (this example should be
based upon specific facts applying to the individual involved and should not
be based upon a generality applicable to a group, e.g., although many
individual Blacks are "disadvantaged" and therefore eligible, it is insufficient
to state that all Blacks are eligible simply because they are Black).
7.1.3 Previous failures to compete effectively for government contracts could be
traced in significant part, to tendencies of regular financing and commercial
agents to restrict their services to established businesses (specific instances
of contract or financing "turn downs" would be helpful).
7.1.4 The individual is a long time resident of urban areas with high concentrations
of unemployment or low income persons.
7.1.5 The individual has been frequently unemployed or marginally employed due
to his residency in depressed areas or due to past practices of discrimination.
7.1.6 The individual has chronically been in a low income status.
7.1.7 In making the administrative finding, care should be exercised to preclude
any implication that eligibility is based principally upon the race, creed or
ethnic background of the individual.
7.1.8 Documentation shall include, in all cases, all information that is required to
support the connection between the applicant's social or economic
disadvantage and his inability to compete successfully in the economic
mainstream.
- 1GI
0 -
7.1.9 The administrative finding shall be summarized in writing and a copy, along
with supporting documents, where necessary, shall be placed in the
applicant's file.
7.2 If a determination of eligibility cannot be made readily and clearly under the provisions
above, the following additional factors will be considered in order to determine the
applicant's eligibility:
7.2.1 Service in the Armed Forces of the United States,resulting in "veteran status"
as it may affect social or economic disadvantages.
7.2.2 Social background.
7.2.3 Inability to obtain technical assistance,business assistance or financing.
7.2.4 Impediments and obstacles encountered in entering into the economic
mainstream resulting from discrimination or other circumstance.
7.2.5 Inability to compete effectively in the marketplace because of restrictive
practices on the part of financing or commercial agents.
7.2.6 Frequency of unemployment or marginal employment due to residence in
depressed areas or past practices of discrimination based on background or
other circumstance.
7.2.7 History of income status of applicant company and principal owner of
property.
SECTION 8. Rules and Regulations Governing Access to Personal Records
Contractor specifically hereby states, and agrees and certifies that it is familiar with the limited
purpose set forth in the Federal laws, rules and regulations, and in the laws of the State of Nebraska
for which personal information requested may be used, and that the information received will be
used solely for those limited purposes and not to harass, degrade, or humiliate any person. The
information released shall be used for the limited purpose stated that the requesting Contractor or
person further agrees to indemnify and hold harmless the City of Omaha for any liability arising out
of the improper use of the information provided.
- 11 -
SECTION 9. Authorized Representative
In further consideration of the mutual covenants herein contained, the parties hereto expressly
agree that for the purpose of notice, including legal service of process, during the term of this
contract and for a period of any applicable statute of limitations thereafter, the following named
individuals shall be authorized representatives of the parties:
(1) City of Omaha:
Planning Director
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha, Nebraska 68183
(2) New Community Development Corporation
Michael B. Maroney, President & CEO
3147 Ames Avenue
Omaha, Nebraska 68152
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written:
ATTEST: CITY OF OMAHA,A Municipal Corporation
in Douglas County, Nebraska
MINA /
C CLERK OF THE CITY OF OMAHA AYOR OF THE CITY OF OM A
ATTEST: / NEW COMMUNITY
art D VELOPMENT CORPORATION
;I--ta a d"i
MICHAEL B. MARONEY l,.
PRESIDENT & CEO
APPROVED AS TO FORM:
(27a1414 V- 6-
ASSISTANT CITY ATTORNEY DATE
P:\PLN3\7032.MAF
- 12 -
SCHEDULE OF BENEFITS
Exhibit Location Description
A 3.1 Scope of Work&Funding Proposal
B 1.14 Definition - Program Income
C 3.09 OMB Circular No. A-128
D 3.09 OMB Circular No. A-133
E 6.1 Equal Employment Opportunity Clause
F 6.1 Affirmative Action Plan
G 6.9 Termination- CFR 85.43 and CFR 85.44
H 6.10 OMB Circular No. A-122
I 6.11 Other Program Requirements - Handbook
6500 Subpart K
NOTE: All documents listed, referenced or cited herein are included as part of the Agreement as
though attached hereto and are conditions of the Agreement. All documents are available
in the City of Omaha Planning Department.
P:\PLN3\7032.MAF
NEW COMMUNITY
DEVELOPMENT CORPORATION
March 11, 1999
Mr. Ken Johnson, Sr.
Manager, Economic Development Division
Omaha/Douglas Civic Center
1819 Famam Street
Omaha,NE 68183
Dear Ken,
This letter is New Community Development Corporation's (NCDC) request for an agreement
with the City for $60,000 in 1999 Community Development Block Grant (CDBG) funds.
NCDC will continue to subcontract with Catholic Charities (CC) for$20,000 to provide training
in South Omaha. NCDC will use the balance of$40,000 to provide training, technical
assistance, micro loans and loan portfolio management. (See attached budget.)
Enclosed are copies of NCDC's accomplishments in 1998, what we propose to accomplish in
1999 and a letter from Catholic Charities indicating their willingness to continue subcontracting
with NCDC to provide Microbusiness services in South Omaha.
If you have any questions or need further information, please give me a call.
Thank you for your assistance in this matter.
in ely, . F r
ichael B. Maroney
President/ CEO
Enclosures
American National Bank Building • 3147 Ames Avenue • Omaha,Nebraska 68111-2760 • (402)451-293' [..mi AX 02,) •4-2595
ncdc@radiks.net • http://www.radiks.net/ncdc " -s.;•
NEW COMMUNITY
DEVELOPMENT CORPORATION
March 11, 1999
Mr. Ken Johnson, Sr.
Manager, Economic Development Division
Omaha/Douglas Civic Center
1819 Famam Street
Omaha,NE 68183
Dear Ken,
New Community Development Corporation (NCDC) will continue to provide Microbusiness
training, micro loans and technical assistance in north Omaha this year. NCDC will again
subcontract with Catholic Charities' Juan Diego Center in 1999 to provide Microbusiness
services in South Omaha.
Using 1999 Community Development Block Grant funds, NCDC will accomplish the following
goals:
--9 eight-week microbusiness training sessions will be held--
(including two in Spanish);
--1 Women Mean Business training will be held;
--40 self-employment opportunities will be created and/or retained;
--10 additional jobs will be created;
--8 loans will be disbursed;
--20 business plans will be completed;
--4 quarterly workshops providing technical assistance will be held; and
--4 newsletters will be published.
NCDC and CC-JDC have expanded our program to increase the number of our graduates
connected to banks. NCDC has been able to help one of our graduates establish a line of credit
instead of taking a loan. We will continue to explore various programs and small business
products with banks.
Please contact me if you need further information.
Thank you for your assistance in this matter.
Sine ely Wr".
L.
Michael B. Maroney
President/CEO
American National Bank Building • 3147 Ames Avenue • Omaha,Nebraska 68111-2760 • (402)451-2939 • +2) 51- .95
ncdc@radiks.net • http://www.radiks.netincdc
lieDaniel E.Sheehan Center
3300 North 60th Street Omaha,Nebraska 68104
Telephone(402)554-0520*Fax(402)551-8797
•
Working with individuals and families to build just and compassionate community
BOARD OF March 3, 1999 •
DIRECTORS
Archbishop Elden F.Curtiss Michael Maroney
Chairman -
Thomas J.Purcell,Ph.D. New Community Development Corporation
President
MaryBeth Rossiter 3147 Ames Avenue
no yJ.Re .Omaha,NE 68111
Timothy J.Regan
Treasurer
Scot L.Adams,Ph.D.
Secretary . Dear Michael,
DIRECTORS = '
•
George B.Achola Esq. Catholic Charities continues to support the New Community
Jerry M.Bartee
John M.Blazek Development Corporation (NCDC) contracting with the City of Omaha for
Paul A.Conley
William A.Cutter ongoing development of microbusiness training and loan opportunities. As in
- Joseph M.Danko the past, Catholic Charities wishes to contract with NCDC to provide services
Susan E.DiFonzo
Michael T.Dobel under the auspices of our South Omaha Juan Diego Center. This letter
FrankJ.Duffy Frank P.Ervin proposes the specifics of Catholic Charities' responsibilities to the project in a
E.W.Fitzgerald,C.P.A. contract with NCDC for the year 1999.
John C.Foley
David G.Folks,M.D.
Juan R.Garcia,Ph.D. As before, if we can be helpful in your provision of services in North
Joyce V.Glenn -
Susanne Grogan Omaha, through St. Martin de Porres Center, we encourage exploration of
Judy Harvey these possibilities.
Joanie Hautzinger
Rev.Willam Kelligar .
Mary C.Ldpez •
Lor Rev.Frank Catholic Charities' Juan Diego Center will continue responsibility for:
W. demann�Joan E.Manning
Rita Melgares
Robert J.Murray 1) recruiting and assessing participants for microbusiness training and •
Joan Neuhaus support services within the guidelines mutually established by our two
Kate Pieper
Lonzale Ramsey programs;
Mary
A.Res
Karen J.Rozmarin 2) providing a training program of personal and business skills development;
Karen
Scott A.Schmidt 3) assisting microbusiness clients in developing loan application packages
Thomas J.Skutt,Jr.
Linda Stryker and serving on the staff loan review committee for microloan requests;
Thomas A.Wunz 4) providing Spanish language translation/interpretation services for
participants and, when needed, Spanish language classes;
5) providing meeting space for South Omaha activities;
6) building a South Omaha support network which includes an advisory
committee;
7) participation in organizing and planning for microbusiness at the local and
state level;
8) Reporting on project progress to NCDC on a regular basis.
A United Way Agency e Member—Catholic Charities.USA
Accredited—Council On Accreditation Of Services For Families 6-Children
-Catholic
harities
_c
Page 2 of New Community Development Corporation, March 3, 1999
Catholic Charities' measurement objectives for 1999 are as follows:
a) To conduct five training series and, in cooperation with NCDC,
sponsor quarterly seminars for graduates;
b) To recruit and assess sixty-five individuals for the Project,at least
half of whom will meet low income,minority or distressed area
guidelines;
c) To make three microloans throughithe NCDC loan pool; and
d) To demonstrate by the end of 1999 twelve microbusinesses which
are providing new self-employment income for their owners.
Catholic Charities will continue to depend on NCDC for development
and management of the loan funds as well as the loan delivery and monitoring
process. We wish to continue to be involved in developing and updating
policies and procedures,planning and coordination between our two
programs. _
In order to finance these responsibilities we propose a contract of
$20,000.00 for the grant year,paid in quarterly increments. A budget is
enclosed describing the planned use of these funds.
We hope you will find these terms appropriate and agreeable. If you
find them so,please sign both copies and return one copy to me..
Thank you for your leadership in the development of this initiative to
increase the economic health of individuals of North and South Omaha and,
indeed our whole community.
Very y y Accepted by:
Scot .Adams,Ph.D. 11;,i/ az,,,,/te`
Executive Director ael Maroney,Executive Director
Catholic Charities Community Development Corporati
Cc: Mary Ann Beckman
, w
Microbusiness Loan Enterprise
Budget Report
Jan. 1,1999 - Dec. 31, 1999
REVENUE
N.C.D.C. Other
Budget Funding Sources
New Community Dev. Corp. 20,000.00 20,000.00 0.00
United Way - Venture Grant 0.00 0.00 0.00
Microenterprise Fund • 22,000.00 0.00 22,000.00
•
-TOTAL 42,000.00 20,000.00 22,000.00
EXPENSES
•
Salary 48,000.00 23,040.00 24,960.00
Fringe 7;850.00 3,768.00 4,082.00
Rent 8,300.00 3,984.00 4,316.00
• Contracted Services 1,850.00 888.00 962.00
Supplies 1,050.00 504.00 • 546.00
Communication 3,850.00 1,848.00 2,002.00
Professional Dev. 1,600.00 768.00 832.00
Travel 750.00 . 360.00 390.00
Administrative Services 8,057.50 3,867.60 4,189.90
Miscellaneous 0.00 0.00 0.00
•
TOTAL 81,307.50 39,027.60 42,279.90
Surplus(Deficit) (39,307.50) (19,027.60) (20,279.90)
Salaries: •
Director(.05FTE) 2,350 •
Prog Coord(.1FTE) 4,550
Micro Coord(.75FTE) 18,950
Micro Asst(1FTE) 22,150
Total 48,000
NEW COMMUNITY DEVELOPMENT CORPORATION
MICRO BUSINESS OPERATING BUDGET
JANUARY 1, 1999 TO DECEMBER 31, 1999
PROGRAM
Program Coordinator $16,500
(Salary @ 50%)
Fringe Benefits 3,100
Business Instructor 10,000
Travel 2,600
Rent 4,800
Program Materials 2,000
Copies and Postage 1,000
TOTAL $40,000 •
CONTRACTUAL $20,000
TOTAL PROGRAM COST/ $60,000
BUDGETED FOR CDBG
NCDC MATCHING FUNDS FOR ADMINISTRATION COST & LOAN POOL
Supervision $4,000
Accounting 1,500
Audit Fee 564
Clerical Support 1,936
Loan Pool $50,000
TOTAL $57,000
c-asA CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr �P.�;�, .. .7 19.....99..
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: •
WHEREAS,the City annually receives Community Development Block Grant funds
under Title I of the Housing and Community Development Act of 1974, as amended,for the purpose
of benefiting low and moderate income residents,eliminating slums and blight, and for other urgent
community development needs; and,
WHEREAS, the City Council of the City of Omaha has previously approved the
allocation of Community Development Block Grant Funds for the establishment of the programs of
the New Community Development Corporation; and,
WHEREAS, the establishment of a Micro Enterprise Program for North and South
Omaha is a part of the Overall Economic Development Program of the City of Omaha; and,
WHEREAS, a determination has been made that the New Community Development
Corporation Program will benefit low and moderate income persons based upon job creation and low
to moderate area benefits; and,
WHEREAS, the Mayor recommended various projects in the 1999 Statement of
Objectives and Proposed Use of Funds, including the funding of a Micro Enterprise Program; and,
WHEREAS, the City Council, by Resolution No. 3267, on December 1, 1998,
approved the Consolidated Plan which incorporated the Statement of Objectives and Proposed Use
of Funds for the 1999 program year, and authorized the Micro Enterprise Program; and,
WHEREAS, the New Community Development Corporation is requesting funding
for the Micro Enterprise Program and is willing to accept the terms and conditions as stated in the
attached Agreement; and,
By
Councilmember
Adopted
City Clerk
Approved * °
Mayor
.C-25A
CITY OF OMAHA
LEGISLATIVE CHAMBER
PAGE 2 Omaha,Nebr April 27 19...9....
WHEREAS,the City of Omaha,through the Planning Department,is recommending
that the New Community Development Corporation receive a contract to continue the Micro
Enterprise Program; and, -
WHEREAS, the Mayor has recommended the contract with the New Community
Development Corporation for the administration and loan fund capitalization of the Micro Enterprise
Program for the period January 1, 1999, through December 31, 1999.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
THAT, the proposed Contract in the amount of$81,644.26 which will be spent for
participant training, and administration for the period January 1, 1999, through December 31, 1999,
between the City of Omaha and the New Community Development Corporation, 3147 Ames
Avenue, Omaha, Nebraska 68111-2760, is approved. Funds are provided from a 1998 carry-over
of $21,644.26 and $60,000.00 from 1999 allocations. $100,000.00 from other sources will be
utilized to provide loans. The funding for the New Community Development Corporation Micro
Enterprise Program is predicated on receipt of funding from the U.S. Department of Housing and
Urban Development(H.U.D.).. These funds will be paid from the Community Development Block
Grant Fund No. 193, Agency 200, Organization Number 8330, Economic Development.
APPROVED AS TO FORM:
ASSISTANT CITY ATTORNEY DATE
P:\PLN3\7031.MAF
By
Counci ember
Adopted IR 2 7 1999 �"O
City Clerk
Approved... ��
ACTING Mait7 •*.1"
�. CD CD O O 01. O
Cp o, . 00 0
CD
0
7:7a nCD �.
.pcoao o
. o � p P J ro VD AD •
' xpO so = 0 a
� ki
O . , Q. N A
cp I �. CO `O n d c� �] O O a' O
h-' p 0 Op O UR Cep �C O O P p A' cp 5.
es V . 2.O E O'r1 :ID p ''dt-P d �*, O 'l' oho P� n ,-
Q I CD OQ C0D Q-' ¢ P O cl 2 0 0 0 O ¢' N p .a Cep
A) td C N O * o
p ,-, ,_, La•
Z
N •