MONTEREY COUNTY BOARD OF SUPERVISORS - DOC 7

							                    MONTEREY COUNTY BOARD OF SUPERVISORS

MEETING:              December 15, 2009             AGENDA NO.:
SUBJECT:              a. Approve Amendment No. 2 to Agreement A-10763 with the
                         California Coastal Rural Development Corporation to continue
                         to administer all aspects of the County’s Revolving Loan Fund
                         programs, and
                      b. Extend the term of the Agreement from December 31, 2009 to
                         June 30, 2010, and increase the amount from $450,000 to an
                         amount not to exceed $525,000,
                      c. Authorize the Contracts/Purchasing Officer to execute
                         Amendment No. 2.
DEPARTMENT:           County Administrative Office – Intergovernmental Affairs

RECOMMENDATIONS:

It is recommended the Board of Supervisors:

a.   Approve Amendment No. 2 to Agreement A-10763 with the California Coastal Rural
     Development Corporation to continue to administer all aspects of the County’s Revolving
     Loan Fund programs, and

b.   Extend the term of the Agreement from December 31, 2009 to June 30, 2010, and increase
     the amount from $450,000 to an amount not to exceed $525,000.

c.   Authorize the Contracts Purchasing Officer to execute Amendment No. 2.

SUMMARY/DISCUSSION:

Approval of this Amendment will extend the current agreement with California Coastal Rural
Development Corporation (Cal Coastal), to provide additional services for an additional amount
of $75,000, and extend the termination date from December 31, 2009 to June 30, 2010, to
continue management of the County’s Small Business Revolving Loan Fund (RLF) Program.
Cal Coastal’s payment for management of the RLF Program is derived from interest and fees
generated by the program.

The Amendment will allow sufficient time to complete the RFP process for a Program
Administrator to manage the County’s Small Business Revolving Loan Fund (RLF) Program.
Once the RFP process is complete, County staff will return to your Board with a
recommendation to approve an Agreement to administer the County’s Revolving Loan Fund
Program.

The State Trade and Commerce Agency chartered Cal Coastal in 1981 to provide direct loans
and loan guarantees to businesses on the Central Coast. To implement these programs, Cal
Coastal has developed a staff of loan officers, loan documentation specialists and accounting
staff. In addition to their infrastructure, Cal Coastal has also been able to leverage the County’s
RLF program with funds from the other programs they administer.

Since 1989, the County has received five grants from the State and Federal governments to
capitalize three Small Business Revolving Loan Funds (RLF). The RLFs were established to
support job creation and retention efforts by providing gap financing to companies that do not
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                                                                         Cal Coastal Amendment #2
                                                                                December 15, 2009

qualify for conventional financing. Since the first RLF Program was established in 1989, these
programs have provided more than $7.4 Million in loans to 73 businesses, and created or
retained 817 jobs. The current RLF Loan portfolio has 27 active loans for a total of $2,425,000
in loans.

OTHER AGENCY INVOLVEMENT:

County Counsel has reviewed and approved the Amendment as to form.

FINANCING:

There is no impact to the General Fund with this recommendation. Sufficient funding for the
Administrative expenses of the Revolving Loan Fund Program is budgeted in Fund 11, Budget
Unit 8044.

Prepared by:                                         Approved by:



__________________________                           ______________________________
Debby L. Bradshaw                                    Nicholas E. Chiulos, Intergovernmental
Management Analyst III                               and Intergovernmental Affairs Director


__________________________                           ______________________________
Date                                                 Date

NEC:dlb

Attachment: Amendment No. 2 (on file with the Clerk to the Board)

c:   Herb Aarons, President California Coastal Rural Development Corporation
     Overall Economic Development Commission Members