Explanation
BACKGROUND: This legislation authorizes the Director of Development to modify a contract with the Community Capital Development Corporation (CCDC) for loan servicing in an amount up to $37,000.00 and to extend the completion date to March 31, 2021.
CCDC has been a long time partner with the Department of Development in administering the city’s Revolving Loan Fund program. The Revolving Loan Fund program provided micro and small businesses startup capital and other assistance to begin a new business or grow an existing business.
This contract modification will allow CCDC to continue servicing the loans they originated for another year. Because of the complexity of changing loan servicers mid-stream and because the department will be posting an RFP for department-wide loan servicing services in mid-2020 for a new contract in 2021, the department requests this contract modification. Depending upon the outcome of the upcoming RFP effort, the department may continue to have CCDC service the remaining loans and if so, will request Council approval to modify this loan servicing contract.
Original Contract $46,850.00 PO191585 Ord. 1787-2019
Modification one $37,000.00
Total Contract Amount $83,850.00
Emergency action is request in order to maintain uninterrupted services.
FISCAL IMPACT: Funding is available in the Division of Economic Development’s general fund budget.
CONTRACT COMPLIANCE: CCDC’s vendor number is 004605 and expires on 9/25/20.
Title
To authorize the Director of Development to modify a contract with the Community Capital Development Corporation (CCDC) for loan servicing in an amount up to $37,000.00 and to extend the contract completion date; to authorize the expenditure of up to $37,000.00 from the general fund; and to declare an emergency. ($37,000.00)
Body
WHEREAS, Community Capital Development Corporation (CCDC) has been a long time partner with the Department of Development in administering the city’s Revolving Loan Fund program; and
WHEREAS the department desires that CCDC continue servicing the loans they initiated because it is impractical at this time to change loan servicers; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to modify the contract with CCDC and the expenditure of said funds in order to maintain uninterrupted services, in order to preserve the public peace, health, safety, and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Development Department is authorized to modify a contract with Community Capital Development Corporation in an amount up to $37,000.00 and to extend the contract completion date.
SECTION 2. That for the purposes stated in Section 1, the expenditure of $37,000.00 or so much thereof as may be needed, is hereby authorized in Fund 1000 (General Fund), Dept-Division 44-02 (Economic Development), in Object Class 03 (Contractual Services) per the accounting codes in the attachment to this ordinance.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5. That in the reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.