HomeMy WebLinkAboutCORRESPONDENCE - RFP - 8740 FINANCIAL SERVICES FOR CITY LOAN PROGRAMSOfficial Purchasing Document
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SERVICES AGREEMENT
THIS AGREEMENT made and entered into the day and year set forth below by and
between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter
referred to as the "City" and FUNDING PARTNERS FOR HOUSING SOLUTIONS DBA
FUNDING PARTNERS, hereinafter referred to as "Service Provider".
WITNESSETH:
In consideration of the mutual covenants and obligations herein expressed, it is agreed by
and between the parties hereto as follows:
1. Scope of Services. The Service Provider agrees to provide services in accordance with the
scope of services attached hereto as Exhibit A, consisting of seven (7) pages and
incorporated herein by this reference. Irrespective of references in Exhibit A to certain
named third parties, Service Provider shall be solely responsible for performance of all
duties hereunder.
2. Contract Period. This Agreement shall commence July 2, 2018, and shall continue in full
force and effect until July 1, 2019, unless sooner terminated as herein provided. In addition,
at the option of the City, the Agreement may be extended for additional one year periods
not to exceed four (4) additional one year periods. Renewals and pricing changes shall be
negotiated by and agreed to by both parties. Written notice of renewal shall be provided to
the Service Provider and mailed no later than thirty (30) days prior to contract end.
3. Delay. If either party is prevented in whole or in part from performing its obligations by
unforeseeable causes beyond its reasonable control and without its fault or negligence, then
the party so prevented shall be excused from whatever performance is prevented by such
cause. To the extent that the performance is actually prevented, the Service Provider must
provide written notice to the City of such condition within fifteen (15) days from the onset of
such condition.
4. Early Termination by City/Notice. Notwithstanding the time periods contained herein, the
City may terminate this Agreement at any time without cause by providing written notice of
termination to the Service Provider. Such notice shall be delivered at least fifteen (15) days
prior to the termination date contained in said notice unless otherwise agreed in writing by
the parties. All notices provided under this Agreement shall be effective when mailed,
postage prepaid and sent to the following addresses:
Service Provider: City: Copy to:
Funding Partners for Housing
Solutions (dba Funding
Partners)
Attn: Megan Ferguson
330 S. College Avenue Suite
400
Fort Collins, CO 80524
City of Fort Collins
Attn: Kim DeVoe
PO Box 580
Fort Collins, CO 80522
City of Fort Collins
Attn: Purchasing Dept.
PO Box 580
Fort Collins, CO 80522
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In the event of early termination by the City, the Service Provider shall be paid for services
rendered to the date of termination, subject only to the satisfactory performance of the
Service Provider's obligations under this Agreement. Such payment shall be the Service
Provider's sole right and remedy for such termination.
5. Contract Sum. The City shall pay the Service Provider for the performance of this Contract,
subject to additions and deletions provided herein, per the attached Exhibit B, consisting of
one (1) page, and incorporated herein by this reference.
6. City Representative. The City will designate, prior to commencement of the work, its
representative who shall make, within the scope of his or her authority, all necessary and
proper decisions with reference to the services provided under this agreement. All requests
concerning this agreement shall be directed to the City Representative.
7. Independent Service Provider. The services to be performed by Service Provider are those
of an independent service provider and not of an employee of the City of Fort Collins. The
City shall not be responsible for withholding any portion of Service Provider's compensation
hereunder for the payment of FICA, Workmen's Compensation or other taxes or benefits or
for any other purpose.
8. Subcontractors. Service Provider may not subcontract any of the Work set forth in the
Exhibit A, Statement of Work without the prior written consent of the city, which shall not be
unreasonably withheld. If any of the Work is subcontracted hereunder (with the consent of
the City), then the following provisions shall apply: (a) the subcontractor must be a reputable,
qualified firm with an established record of successful performance in its respective trade
performing identical or substantially similar work, (b) the subcontractor will be required to
comply with all applicable terms of this Agreement, (c) the subcontract will not create any
contractual relationship between any such subcontractor and the City, nor will it obligate the
City to pay or see to the payment of any subcontractor, and (d) the work of the subcontractor
will be subject to inspection by the City to the same extent as the work of the Service
Provider.
9. Personal Services. It is understood that the City enters into the Agreement based on the
special abilities of the Service Provider and that this Agreement shall be considered as an
agreement for personal services. Accordingly, the Service Provider shall neither assign any
responsibilities nor delegate any duties arising under the Agreement without the prior written
consent of the City.
10. Acceptance Not Waiver. The City's approval or acceptance of, or payment for any of the
services shall not be construed to operate as a waiver of any rights or benefits provided to
the City under this Agreement or cause of action arising out of performance of this
Agreement.
11. Warranty.
a. Service Provider warrants that all work performed hereunder shall be performed with the
highest degree of competence and care in accordance with accepted standards for work
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of a similar nature.
b. Unless otherwise provided in the Agreement, all materials and equipment incorporated
into any work shall be new and, where not specified, of the most suitable grade of their
respective kinds for their intended use, and all workmanship shall be acceptable to City.
c. Service Provider warrants all equipment, materials, labor and other work, provided under
this Agreement, except City-furnished materials, equipment and labor, against defects
and nonconformances in design, materials and workmanship/workwomanship for a
period beginning with the start of the work and ending twelve (12) months from and after
final acceptance under the Agreement, regardless whether the same were furnished or
performed by Service Provider or by any of its subcontractors of any tier. Upon receipt
of written notice from City of any such defect or nonconformances, the affected item or
part thereof shall be redesigned, repaired or replaced by Service Provider in a manner
and at a time acceptable to City.
12. Default. Each and every term and condition hereof shall be deemed to be a material element
of this Agreement. In the event either party should fail or refuse to perform according to the
terms of this agreement, such party may be declared in default thereof.
13. Remedies. In the event a party has been declared in default, such defaulting party shall be
allowed a period of ten (10) days within which to cure said default. In the event the default
remains uncorrected, the party declaring default may elect to (a) terminate the Agreement
and seek damages; (b) treat the Agreement as continuing and require specific performance;
or (c) avail himself of any other remedy at law or equity. If the non-defaulting party
commences legal or equitable actions against the defaulting party, the defaulting party shall
be liable to the non-defaulting party for the non-defaulting party's reasonable attorney fees
and costs incurred because of the default.
14. Binding Effect. This writing, together with the exhibits hereto, constitutes the entire
agreement between the parties and shall be binding upon said parties, their officers,
employees, agents and assigns and shall inure to the benefit of the respective survivors,
heirs, personal representatives, successors and assigns of said parties.
15. Indemnity/Insurance.
a. The Service Provider agrees to indemnify and save harmless the City, its officers, agents
and employees against and from any and all actions, suits, claims, demands or liability
of any character whatsoever brought or asserted for injuries to or death of any person
or persons, or damages to property arising out of, result from or occurring in connection
with the performance of any service hereunder.
b. The Service Provider shall take all necessary precautions in performing the work
hereunder to prevent injury to persons and property.
c. Without limiting any of the Service Provider's obligations hereunder, the Service Provider
shall provide and maintain insurance coverage naming the City as an additional insured
under this Agreement of the type and with the limits specified within Exhibit D, consisting
of one (1) page, attached hereto and incorporated herein by this reference. The Service
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Provider before commencing services hereunder, shall deliver to the City's Purchasing
Director, P. O. Box 580, Fort Collins, Colorado 80522 one copy of a certificate
evidencing the insurance coverage required from an insurance company acceptable to
the City.
16. Entire Agreement. This Agreement, along with all Exhibits and other documents
incorporated herein, shall constitute the entire Agreement of the parties. Covenants or
representations not contained in this Agreement shall not be binding on the parties.
17. Law/Severability. The laws of the State of Colorado shall govern the construction
interpretation, execution and enforcement of this Agreement. In the event any provision of
this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction,
such holding shall not invalidate or render unenforceable any other provision of this
Agreement.
18. Prohibition Against Employing Illegal Aliens. Pursuant to Section 8-17.5-101, C.R.S., et.
seq., Service Provider represents and agrees that:
a. As of the date of this Agreement:
1. Service Provider does not knowingly employ or contract with an illegal alien who will
perform work under this Agreement; and
2. Service Provider will participate in either the e-Verify program created in Public Law
208, 104th Congress, as amended, and expanded in Public Law 156, 108th
Congress, as amended, administered by the United States Department of Homeland
Security (the “e-Verify Program”) or the Department Program (the “Department
Program”), an employment verification program established pursuant to Section 8-
17.5-102(5)(c) C.R.S. in order to confirm the employment eligibility of all newly hired
employees to perform work under this Agreement.
b. Service Provider shall not knowingly employ or contract with an illegal alien to perform
work under this Agreement or knowingly enter into a contract with a subcontractor that
knowingly employs or contracts with an illegal alien to perform work under this
Agreement.
c. Service Provider is prohibited from using the e-Verify Program or Department Program
procedures to undertake pre-employment screening of job applicants while this
Agreement is being performed.
d. If Service Provider obtains actual knowledge that a subcontractor performing work
under this Agreement knowingly employs or contracts with an illegal alien, Service
Provider shall:
1. Notify such subcontractor and the City within three days that Service Provider has
actual knowledge that the subcontractor is employing or contracting with an illegal
alien; and
2. Terminate the subcontract with the subcontractor if within three days of receiving the
notice required pursuant to this section the subcontractor does not cease employing
or contracting with the illegal alien; except that Service Provider shall not terminate
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the contract with the subcontractor if during such three days the subcontractor
provides information to establish that the subcontractor has not knowingly employed
or contracted with an illegal alien.
e. Service Provider shall comply with any reasonable request by the Colorado Department
of Labor and Employment (the “Department”) made in the course of an investigation that
the Department undertakes or is undertaking pursuant to the authority established in
Subsection 8-17.5-102 (5), C.R.S.
f. If Service Provider violates any provision of this Agreement pertaining to the duties
imposed by Subsection 8-17.5-102, C.R.S. the City may terminate this Agreement. If
this Agreement is so terminated, Service Provider shall be liable for actual and
consequential damages to the City arising out of Service Provider’s violation of
Subsection 8-17.5-102, C.R.S.
g. The City will notify the Office of the Secretary of State if Service Provider violates this
provision of this Agreement and the City terminates the Agreement for such breach.
19. Special Provisions. Special provisions or conditions relating to the services to be performed
pursuant to this Agreement are set forth in Exhibit C - OBF2.0 Processes, Procedures,
Rules and Regulations, consisting of seven (7) pages and Exhibit E - Confidentiality,
consisting of three (3) pages, both attached hereto and incorporated herein by this
reference.
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THE CITY OF FORT COLLINS, COLORADO
By:
Gerry Paul
Purchasing Director
DATE:
ATTEST:
APPROVED AS TO FORM:
FUNDING PARTNERS FOR HOUSING
SOLUTIONS (DBA FUNDING PARTNERS)
By:
Printed:
Title:
CORPORATE PRESIDENT OR VICE PRESIDENT
Date:
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Executive Director
Sean Doherty
7/9/2018
Assistant City Attorney ll
7/23/2018
City Clerk
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EXHIBIT A
SCOPE OF SERVICES
Service Provider shall provide financial services in support of three loan programs: The On-Bill
Financing 2.0 Home Efficiency Loan Program; the Landmark Rehabilitation Loan Program and;
the Air Quality Improvement Loan Program. Each program has different guidelines, processes
and procedures. A detailed description of each program’s requirements is outlined below.
For all the loan programs, at the time of loan origination, Service Provider must verify and
document that the loan applicant is a United States citizen, per Colorado Statute C.R.S. 24-76.5-
103(4)(b), and verify that the subject premise receiving a loan is within the boundary of the City
of Fort Collins.
Specific to On-Bill Finance Version 2 (OBF2.0) energy loans that qualify under the EW-Homes
program, Service Provider must also verify that the loan applicant is a Fort Collins Utilities electric
customer.
Specific to OBF2.0 water service line replacement loans, Service Provider must also verify that
applicant is a Fort Collins Utilities water customer.
A. ON-BILL FINANCING VERSION 2 PROGRAM
Program Requirements
The Service Provider shall provide licensed mortgage loan originator services in compliance with
the Colorado Revised Statute C.R.S. § 12-61-901 et seq., requiring mortgage companies to be
registered by the Colorado Division of Real Estate, for OBF2.0.
A program guide containing OBF2.0 Processes, Procedures, Rules and Regulations is attached
in Exhibit C. Service Provider should ensure they have the most recent version from City
Representative.
The form of all notifications, applications, loan documents, and other documentation used by the
Service Provider in providing the services hereunder shall be satisfactory to the City and approved
in advance of use by Service Provider by City Representative.
Service Provider shall retain all original documents and permanent loan files, record all
appropriate documents as necessary and as the City may reasonably require, and issue release
of collateral obligations upon final satisfaction of the promissory note. The City will service all
outstanding loans and payments will be collected through the utility billing system.
Service Provider is entitled to collect compensation to maintain the scope of services in the
OBF2.0, and shall impose no other fees, charges or surcharges on the City, borrower or any other
person in connection with the performance of services hereunder. Fees are outlined in Exhibit B.
• For the release of recordings with Larimer County upon the completion of loans, Service
Provider shall bill the City for each loan which is completed and released.
• A fee shall be paid to the City by the customer for the recording and release of the Uniform
Commercial Code (UCC) lien.
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• A fee shall be paid by the borrower to the Service Provider, for the fulfillment of subordination
requests from existing loan homeowners, including un-recording and then re-recording UCC
filings pre- and post-refinancing of a first and second mortgage.
Loan Originating and Servicing Task List
Service Provider shall perform the following tasks:
• Quarterly Production Reports to the City including:
o Summary of cumulative program production, broken out per year.
▪ Borrower name, loan number, loan amount, approval & closing dates,
improvements made, loan term, interest rate, FICO, and percent of area
median income (AMI)
o OBF2.0 Closed Loans including:
▪ Borrower name, loan number, loan amount, approval and closing dates,
loan term, improvements made, contractors used, annual income, FICO,
and percent of AMI
o OBF2.0 Pending Applications including:
▪ Borrower name, loan number, application date, loan amount requested,
annual income, FICO, and contractors proposing work scopes.
o OBF2.0 Loans Withdrawn including:
▪ Borrowers name, loan application number, application date, withdrawn
date, loan amount requested, annual income, FICO, and reason for
withdrawal.
o OBF2.0 Loans Denied including:
▪ Borrowers name, loan number, application date, denied date, loan
amount requested, FICO, reason for denial.
• Record UCC Lien filing with Larimer County after loan closing
• Intake for subordination requests
o Subordination review, including appraisal, and letter of explanation for the
subordination request, and a Subordination Authorization form, will be sent to
City Program Manager for review and approval.
o Subordination Authorization
o Prepare Subordination Agreement, sign & notarize
o Release original UCC Lien filing prior to refinance
o Track refinance loan status, then re-record UCC lien filing with Larimer County
after refinance loan closes.
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• Processing of OBF2.0 HELP Loan Payoffs is handled by the City.
• The City shall notify Service Provider of HELP Loan payoffs.
o Service Provider shall then release UCC lien with Larimer County
o Service Provider shall provide lender of verification of release of UCC lien
B. LANDMARK REHABILITATION LOAN PROGRAM
Program Requirements
The Service Provider shall provide licensed mortgage loan originator services in compliance
with Colorado Revised Statute C.R.S. § 12-61-901 et seq., requiring mortgage companies to be
registered by the Colorado Division of Real Estate, for the City’s Landmark Rehabilitation Loan
Program (LRLP).
The City will email LRLP applications to the Service Provider along with the following
documentation:
• Total LRLP funding available for projects;
• Work items and costs eligible for LRLP funding for each application;
• Design review ranking of each application work item.
A City Representative will be designated for the LRLP. Within two weeks of receiving such
information from the City, the Service Provider shall review the materials, approve conditional
funding for each application, and notify the City Representative of its funding decisions. If the
City approves the funding decisions, the Service Provider shall send written notification to each
applicant of the funding decision and loan terms and conditions. The maximum loan amount
that can be approved by the Service Provider is $7,500. The City will pay the approved loan
amount directly to the applicant.
Once a project approved for funding through the LRLP has been completed and inspected by
the City, the Service Provider shall prepare a promissory note and deed of trust in accordance
with the Municipal Code. The form of the promissory note and deed of trust shall be approved
by the City of Fort Collins Attorney’s Office. Service Provider will provide and coordinate
presentation of all loan documents to borrower at the time of loan settlement to collect original
signatures. Service Provider shall retain all original documents and permanent loan file, record
all appropriate documents as necessary and as the City may reasonably require, and issue
release of collateral obligations for loan repayment upon final satisfaction of the promissory
note. Copies of all executed loan documents will be provided to the City as supplement to the
itemized transaction invoice. Public recording and other third-party fees shall be assessed and
collected outside of closing from the City, as detailed within a closing disclosure prepared by
Service Provider.
Service Provider is entitled to collect the following compensation to implement the described
program, but shall impose no other fees, charges or surcharges from the City, borrower or any
other person in connection with the performance of services hereunder. Fees are outlined in
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Exhibit B.
• A one-time loan servicing transfer fee, shall be assessed per file. Payable at the time of
servicing transfer from the City to Service Provider.
• A loan origination fee shall be payable by the City at time of loan closing.
• Public recording fees at origination shall be payable by the City, collected at the time of
related service. Deed release fees at payoff will remain the responsibility of the borrower.
• An annual servicing fee for outstanding loans held in portfolio may be payable by the City in
January of each calendar year based on the City’s outstanding portfolio as of prior 12/31.
First annual servicing fee to be assessed January 2019.
Loan Originating and Servicing Task List
Service Provider shall perform the following tasks:
• Data entry to servicing software
• Verify payment method with borrower (check mail in, Automated Clearing House (ACH)
automatic withdrawal)
• Monthly statement to borrower (USPS mail or e‐statement)
• Entry of monthly payments upon receipt
• Check payable to the City for payments/payoffs received in previous month
• Quarterly Production Reports to the City including:
o Summary of cumulative program production, broken out per year.
o Borrower name, loan amount, approval & closing dates, loan term, credit score,
etc.
• Prepare payoff statements/balance inquiry upon request
• Intake for subordination requests
o Subordination review, including appraisal, and letter of explanation for the
subordination request, and a Subordination Authorization form, will be sent to
City Representative for review and approval.
o Subordination Authorization
o Prepare Subordination Agreement, sign & notarize
o Release original UCC Lien filing prior to refinance
o Track refinance loan status, then re-record UCC lien filing with Larimer County
after refinance loan closes.
• Process Payoff Payments
o Final payment clears, applied to loan file
o Cancel ACH (as applicable)
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o Prepare release of UCC lien
o Obtain original Promissory Note
o Record release of lien with Larimer County
o Original Promissory Note returned to borrower as evidence of release and
payment in full.
C. AIR QUALITY IMPROVEMENT LOAN PROGRAM
Program Requirements
Service Provider shall provide licensed mortgage loan originator services in compliance with
Colorado Revised Statute C.R.S. § 12-61-901 et seq., requiring mortgage companies to be
registered by the Colorado Division of Real Estate, for the City’s Air Quality Improvement Loan
Program (AQILP).
The City will refer AQILP applicants to the Service Provider to complete credit application forms
including the following:
• Completed online or paper application.
• Signed Authorization to Release Information.
• A Credit Report fee paid online by the applicant or directly to Service Provider by check.
• Proposed Scope of Work (subject to the approval of the City).
A City Representative will be designated for the AQILP. Within 24 business hours of receiving all
required information from the applicant, the Service Provider shall review the application and
credit and provide written notification to the City, the applicant and their Project Contractor of the
credit decision, loan terms and conditions. The maximum loan amount that can be approved by
the Service Provider is $3,000 for radon mitigation, $3,000 for wood fireplace replacements, and
$10,000 for mold mitigation. The City will send payment of the approved loan amounts to the
Service Provider weekly by City check or ACH.
The form of all notifications, applications, loan documents, and other documentation used by the
Service Provider in providing the Services hereunder shall be reasonably satisfactory to the City
and approved in advance of use by Service Provider. Service Provider will prepare loan closing
documents that shall include a lien waiver and completion of work affidavit wherein the borrower
and Project Contractor must acknowledge the amount paid to the Project Contractor upon loan
settlement. The Project Contractor shall acknowledge that all work is or will be completed
according to local standards in a good and workmanlike fashion, and in compliance with any
applicable local, state and federal regulations, within the agreed upon timeframe and shall verify
that all suppliers and/or subcontractors for the project are paid in full with no further recourse to
the borrower, and furnish lien waivers to that effect.
Application, public recording and other third-party fees shall be assessed and collected at time of
settlement, as detailed within a settlement statement prepared by Service Provider.
Service Provider will present all loan documents to borrower at the time of loan settlement. Each
borrower must acknowledge receipt of a standard Colorado notice of rescission, allowing
cancellation of the loan within 3 business days of settlement. The loan documents must be signed
in the presence of a notary public, which will be arranged between Service Provider and the
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borrower. Upon receipt and acceptance of completed and signed lien waiver and completion of
work affidavit from the Project Contractor and, if applicable, subcontractors, Service Provider shall
release loan proceeds, less its own fees, directly to Project Contractor upon confirmation that all
work is complete. Disbursement of funds is prohibited prior to expiration of the rescission period.
Service Provider shall retain all original documents and permanent loan file, record loan
documents and UCC filings as appropriate and as reasonably required by the City, shall process
and issue subsequent project draw requests, and issue release of collateral obligations upon final
satisfaction of the promissory note. Copies of all executed loan documents will be provided to
the City after closing. Service Provider will service all outstanding loans and payments will be
collected via ACH payment draft from borrower’s bank account through a participating depository
institution.
Service Provider is entitled to collect the following compensation to implement the described
program, but shall impose no other fees, charges or surcharges from the City, borrower or any
other person in connection with the performance of services hereunder. Fees are outlined in
Exhibit B.
▪ A loan origination fee of $400.00 per loan shall be payable by the City at time of loan
closing.
▪ Public recording and release fees shall be payable by the City, collected at the time of
related service.
▪ An annual servicing fee, not to exceed 30 loan files, for outstanding loans held in
portfolio, shall be payable by the City in each calendar year.
Service Provider shall remit AQILP payments, portfolio status reports, and other applicable
documents to the City by the 15th day of each month.
Service Provider must review and approve any commercial communication, marketing or
advertising collateral related to mortgage financing to ensure compliance with state and federal
regulations under The Mortgage Acts and Practices – Advertising Rule. Commercial
Communication defined as: any written or oral statement, illustration, or depiction, whether in
English or any other language, that is designed to effect a sale or create interest in purchasing
goods, or services, whether it appears on or in a label, package, package insert, radio, television,
cable television, brochure, newspaper, magazine, pamphlet, leaflet, circular, mailer, book insert,
free standing insert, letter, catalogue, poster, chart, billboard, public transit card, point of purchase
display, film, slide, audio program transmitted over a telephone system, telemarketing script, on‐
hold script, upsell script, training materials provided to telemarketing firms, infomercial, the
Internet, cellular network, or any other medium.
Loan Originating and Servicing Task List
Service Provider shall perform the following tasks:
• Data entry to servicing software
• Verify payment method with borrower (check mail in, ACH automatic withdrawal)
• Monthly statement to borrower (USPS mail or e‐statement)
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• Entry of monthly payments upon receipt
• Check payable to the City for payments/payoffs received in previous month
• Quarterly Production Reports to the City including:
o Summary of cumulative program production, broken out per year.
o Borrower name, loan amount, approval & closing dates, loan term, credit score,
etc.
• Prepare payoff statements/balance inquiry upon request
• Intake for subordination requests
o Subordination review, including appraisal, and letter of explanation for the
subordination request, and a Subordination Authorization form, will be sent to
City Representative for review and approval.
o Subordination Authorization
o Prepare Subordination Agreement, sign & notarize
o Release original UCC Lien filing prior to refinance
o Track refinance loan status, then re-record UCC lien filing with Larimer County
after refinance loan closes.
• Process Payoff Payments
o Final payment clears, applied to loan file
o Cancel ACH (as applicable)
o Prepare release of UCC lien
o Obtain original Promissory Note
o Record release of lien with Larimer County
o Original Promissory Note returned to borrower as evidence of release and
payment in full.
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EXHIBIT B
FEE SCHEDULE
The following schedule reflects the one-time administration fee assessed for the underwriting
and closing of third party loans. Fees are due and payable at time of loan settlement and may
be paid by the borrower, program sponsor, or other party.
Equity Share (non-amortizing) $350.00
Amortizing Loans $400.00
Primary Mortgage $500.00
Primary Mortgage w/Escrow Servicing $750.00
Chattel w/Escrow Servicing Greater of 1.0% or $500.00
Non-Owner Occupied/Commercial Use1 Greater of 1.0% or $500.00
Piggyback Loans2 $50.00
Subordinations & Modifications $150.00
Recording Fee $23.00
Client Paid Fees
Accounts Receivable (31+ days past due) 4.50% APR
Wire Convenience3 $25.00
Loan Servicing Transfer Fee4 $100.00 per file
Loan Servicing Transfer Fee with Escrow4 $150.00 per file
New Program Implementation $2,500.00
Annual Portfolio Servicing Fee:
The annual servicing fee for outstanding loans held in portfolio shall be payable by the City in
January of each calendar year based on the City’s outstanding portfolio as of prior December
31. First annual servicing fee to be assessed January 2019.
Number of Loan Files: 1-10
11-30 31-75 76-150
Over 150
Non-Escrow $1,500
$2,500 $3,500 $4,500 Call for
Pricing
With Escrow $2,500
$3,500 $4,500 $5,500 Call for
Pricing
1 Fee will be the greater of 1.0% of the original loan amount or $500.
2 In the event borrower is extended multiple loan products for a single transaction, the higher scheduled fee will apply.
Companion loan products will be assessed a nominal ‘Piggyback’ fee.
3 Clients that elect to be invoiced for loan proceeds post-closing will be assessed a convenience fee.
4 For client portfolio transfer to Funding Partners for servicing.
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EXHIBIT C
OBF2.0 PROCESSES, PROCEDURES, RULES AND REGULATIONS
Service Provider should ensure they have the most recent version from the Project Manager.
Executive Summary
The proposed procedures for On-Bill Finance Version 2 (OBF2.0) closely adhere to the legal
parameters and guidance objectives establish in the Financial Officer’s Rules and Regulations
and Fort Collins Municipal Code Section 26-720. These processes and procedures are based
on the proven approaches previously established and tested under the original OBF pilot
program, developed in collaboration with Funding Partners dba Energy Smart Partners.
Note: Category titles in the flowchart in some cases are slightly different from the titles of the
paragraphs, see parenthetical references, below.
Loan Application and Pre- Approval (Flow Chart Category: IBID)
A. Program parameters are those approved by City Council and incorporated into the
Financial Officer’s Rules and Regulations.
B. Application Format to be used is that approved by Utilities Program Manager (UPM).
C. The processing of applications may be contracted with a Loan Administrator.
D. The Loan Administrator collects and retains application fee set by Program Policy ($
TBD).
E. The Loan Administrator determines whether the application qualifies under Program
Policy by considering whether:
1. The application includes all required supporting documentation; and
2. The project is within the scope of the Program; and
3. The applicant’s credit score and other related criteria meet Program standards;
and
4. The applicant is a natural person and not a legal entity; and
F. Loan Administrator notifies customer and Utility Program Manager if application does not
qualify and the reasons the application did not qualify.
G. If application qualifies, Loan Administrator notifies Utility Billing to verify customer Utility
bill payment history meets program standards:
1. Utilities Billing notifies Loan Administrator that the customer is qualified, or not.
H. Loan administrator notifies customer if they are pre-approved or not
I. Applications to be filed and maintained by Loan Administrator for 2 years if application is
denied, or 7 years after the loan has been repaid including:
1. The preliminary loan terms: interest rate, total loan amount, duration, estimated
payment amount, and anticipated loan processing fee.
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Initial Loan Approval (Flow Chart Category: IBID)
J. If customer is pre-approved for a loan, Loan Administrator collects contractor(s) project
proposal(s) from the customer
K. Loan administrator completes Loan Project Approval Form and sends to Utility Loan
Program Manager for initial loan approval
L. The Loan Project Approval Form will have sign-off sections for Initial and Final Loan
approval, and the following:
1. Loan Application # and Pre-approval information
2. Applicant information
3. Type of project(s): Energy Efficiency, Water Conservation, Solar, and Radon
4. Project contractor(s) contact information
M. Loan Program Manager distributes Loan Approval Form to designated Utility Loan
program reviewers for initial project qualification. Reviewers will be designated for:
1. Energy conservation, Rooftop Solar, Water Service Line, and Radon System
loans
N. If project is approved, reviewers sign-off on initial loan approval and return Loan
Approval form to Loan Program Manager
O. If project is not approved, reviewer must contact contractor for further project clarification
of measure removal from proposal, and once approved, signs-off on Initial Approval and
returns to Loan Program Manager
P. If project cannot be modified to qualify, reviewer notifies Loam Program Manager and
Loan Administrator. Loan administrator notifies contractor and customer of loan denial.
Q. Loan Initial Approvals are authorized by the signature of the Loan Administrator and
Loan Program Reviewers.
R. Loan Approval Forms with Initial Approval to be filed and maintained by Loan
Administrator. Copies will be provided to the Utility Program Manager.
Loan Finalization Process (Flow Chart Category: Loan Approval, Closing & Payment Process)
A. Applicants who receive loans under the Program are referred to hereafter as “Borrower.”
B. Loan Administrator will utilize that Final Project Application format approved by Utility
Program Manager:
1. Loan will not be closed until Final Project Application is approved by the Utility
Program Reviewers and Manager, validating that the Project is completed and meets
Program standards; and
2. The Contractor completes the Lien Waiver & Completion of Work Affidavit and
submits to the Loan Administrator that the project is complete and the borrower
acknowledges the amount that will be paid to the contractor which qualifies for a
loan.
C. Loan Administrator will utilize Loan document forms approved by City Attorney’s Office.
D. Original signed loan agreements will be maintained by Loan Administrator. Copies provided
to Utility Program Manager.
E. The Loan Administrator notifies City Billing and Borrower the date of loan closing.
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F. The Loan Administrator drafts Loan documents, and will calculate and draft loan terms, plus
fees.
G. The Loan Administrator will utilize loan documents approved by Utility Program Manager.
H. The Loan Administrator will prepare a summary of loan closing documents and distribute
copies of the loan agreement to Borrower and Utility Program Manager
I. Utility Program Manager will verify the following steps have been completed:
1. Loan Approval Letter was signed by Loan Administrator; and
2. Loan Agreement was signed by Loan Administrator and Borrower; and
3. Final Project Application was approved by City; and
4. Credit check was completed and application meets standards; and
5. Borrower Application Form was approved by the Loan Administrator.
J. Utility Billing Department will enter loan information into the Utility billing system, including
Uniform Commercial Code (UCC) filing fee
K. Utility Billing Department will prepare Payment Authorization to provide to the Finance
Department and include the following:
1. Copy of Summary Closing Documents; and
2. A checklist signed by Utility Program Manager; and
3. Loan schedule produced by Utility billing system; and
4. UCC filing fee
L. Utility Billing Department must utilize a check list approved by Finance Department.
M. An Accountant in Finance will review and sign Payment Authorization for payment to Loan
Administrator. Payments will be made by Automated Clearing House (ACH) on City’s
regular payment cycle.
N. The Loan Administrator will make payment(s) to contractor(s).
O. Loan Administrator will file UCC lien on property with County and invoice the Utility Program
Manager for the appropriate fee.
Loan Processing and Close Out (Flow Chart Category: Loan Approval, Closing & Payment
Process)
A. Utility Billing will generate payment schedule using loan program within utility billing
software, detailing principal, interest, and total payment by month.
B. Utility Billing will track and update loans monthly on a summary spreadsheet, separately
listing pending active, closed, denied, and withdrawn loans; and send to Utility Program
Manager.
C. Borrower will be billed monthly as a separate line item on their Utility bill according to the
payment schedule, with the following rules:
a. Payments made before due date will not have loan interest reduced.
b. Payments made after due date will not have loan interest increased.
However, if the Utility account of the Borrower becomes past due, interest will
be billed to Borrower per normal Utility billing practices.
c. Credit balances on an account of a Borrower will not be automatically applied
to outstanding loan balance.
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d. Borrowers wishing to pay off the remaining balance on the loan early must
contact Utility Billing and make this arrangement.
e. Accelerated additional loan payments will not reduce interest owed.
D. Utility Billing will follow regular collections process for amounts past due, including
service disconnection.
E. Once a month Utility Billing will review list of loans that should be completed, validate
their status, and if paid off, notify Utility Program Administration that loan is settled.
F. Utility Program Administration will update their records and forward close-out notice to
Loan Administrator.
G. The Loan Administrator will update their records and send a release of UCC lien to
County.
Record Keeping & Program Oversight (Flow Chart Category: N/A)
A. At the end of each calendar year the Utility Billing department will prepare a list of
amounts outstanding by Borrowers. This list must tie to amounts in general ledger
a. Utilities Billing will also and complete and send a 1098 form to the customer
B. Once a month the Utility Program Manager will review the total amount outstanding per
the general ledger. UPM is responsible to make sure the total outstanding does not
exceed the amount authorized City Council.
C. Utility Billing will gather data needed to prepare 1098 INT statements for customers that
paid more than $600 in interest in the calendar year, at least 30 days before due date.
D. Utilities Billing will prepare and distribute annual 1098 statements and send them to
Borrowers and IRS per applicable federal regulations.
Sample Accounting Transactions – To be revised per direction from Finance
Action Type Debit Credit
1 Payment Authorization to EPS-
Principal $XXX
Customer Loans
Receivable
501.162030
Pooled Cash
501.111010
2 Payment Authorization to EPS-
Rebate $XXX
Rebates Expense
501.543XXX
Pooled Cash
501.111010
No Receivable set up in utility billing
system for initial loan
3 CIS utility billing of Principal
(interface to JDE GL)
A/R Customers
501.123030
Customer Loans
Receivable
501.162030
4 CIS utility billing of Interest
(interface to JDE GL)
A/R Customers
501.123030
Interest from Loans
501.469010
5 Customer monthly payment Pooled Cash
501.111010
A/R Customers
501.123030
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Loan Program Parameters (Flow Chart Category: N/A)
A. Interest Rates - The interest rate is established for the Loan as not less than 2.5% nor
more than 10% per annum, with the interest rate for each loan to be set in accordance
with the administrative rules and regulations of the Financial Officer pursuant to § 26-720.
B. Annual Interest Rate Adjustment- On an annual basis, the City’s Chief Financial Officer will
review this interest rate range and determine whether it should be modified.
C. Loan Term- Loan amounts shall be not less than $1,000, and not to exceed $25,000, and
are limited to the service life of the improvement. Borrower may choose a shorter term if
they so choose. The interest rate shall be the same for any loan, regardless of the loan
term the borrower chooses.
D. Program Loan Limit- The total amount of loans outstanding will be determined by the
available capital and as authorized by the City Council.
E. Property Type - Eligible properties are residential single-family dwellings or townhomes.
Residential rental properties are eligible with loan application from the owner, a natural
person. A loan secured by a UCC lien on a rental property will be billed directly to the
owner who obtained the loan.
F. Collateral - Loans will be secured by a UCC lien recorded with Larimer County. Electric
service may be discontinued for nonpayment of past-due accounts directly or indirectly
related to the provision of electric service, in which event written notice shall be given in
accordance with Section 26-713 of the Fort Collins Municipal Code and any Council-
approved service rules and regulations.
G. Repayment - Monthly payment of principal and interest will be collected by the City of Fort
Collins Utility Billing Office as a line item on the Borrower’s City of Fort Collins monthly
utility bill. Escrow for hazard insurance and property taxes are not collected or provided for
by any Loan Administrator the City may retain and remain the sole responsibility of the
home owner.
H. Loan Fees - A one-time non-refundable application fee in the amount of $(TBD) shall be
due and payable upon submittal of all City of Fort Collins Utilities On-Bill Financing
Program loan applications. An additional origination fee in the amount of $(TBD) is due to
the Loan Administrator at time of loan settlement. Borrower may choose to pay the
origination fee at closing or add the amount to the loan principle (not to exceed loan
maximum). Public recording and any other third-party service fees are the responsibility of
the Borrower and assessed at the time of loan settlement.
I. Credit Criteria – Applicants must meet minimum credit scores established by the Program
Qualification Standards. To obtain a loan from Loan Administrator under the Program, a
borrower must meet the following requirements:
J. Qualified use of Funds - Permitted capital improvement projects must, in order to qualify,
enhance the health, safety, and energy or water efficiency of the home, including
installation of renewable energy systems as allowed by the Utilities Program Manager. A
list of qualifying energy improvements and the rebates available can be found by
accessing the Efficiency Works Homes Program (EWH) home page on fcgov.com. A list of
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qualifying renewable energy projects and the rebates available can be found by accessing
the links on the Solar Rebates web page on fcgov.com. Water service line repairs qualify
as described on the service line repair web page on fcgov.com. Radon loan requirements
can be found on the Air Quality Loan Program web page on fcgov.com.
K. Loan Origination – Loan origination procedures are established by Loan Administrator and
are available on fcgov.com.
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Loan Application and Pre-Approval
Customer Loan
Applications
LA
•
Utility bill history &
min. FICO score ---.
verified
LA&UB
Customer
Pre-approved
3rd Party Loan Administrator (LA)
Utilities Staff (UB)
Utilities Program Staff (RV)
- Finance Department
Initial Loan Approval
Project(s)
proposals
collected &
distributed to
reviewer(n
!
Project Review, and
Modification, if
Necessary
RV
Initial Loan
Approval
_J RV
Loan Approval, Closing & Payment Process
Lien waiver and
project completion
...----- documents signed
by contractor &
owner LA
t
Final Project
Invoices Collated
and Sent to
Reviewer LA
Final Project and
lnvoice(s) Reviewed
and Sent to LA
RV
Loan Closing
Docs & Contractor
lnvoice(s)
Distributed to
Utility • Billing LA
UB sets up Payment
Schedule and Notifies
Finance Department
RV
!
Finance Department
Reimburses LA for
Contractor Payment
...
Contractors
paid by LA via
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EXHIBIT D
INSURANCE REQUIREMENTS
1. The Service Provider will provide, from insurance companies acceptable to the City, the
insurance coverage designated hereinafter and pay all costs. Before commencing work
under this bid, the Service Provider shall furnish the City with certificates of insurance
showing the type, amount, class of operations covered, effective dates and date of
expiration of policies, and containing substantially the following statement:
“The insurance evidenced by this Certificate will not reduce coverage or limits and
will not be cancelled, except after thirty (30) days written notice has been received
by the City of Fort Collins.”
In case of the breach of any provision of the Insurance Requirements, the City, at its
option, may take out and maintain, at the expense of the Service Provider, such
insurance as the City may deem proper and may deduct the cost of such insurance from
any monies which may be due or become due the Service Provider under this
Agreement. The City, its officers, agents and employees shall be named as additional
insureds on the Service Provider 's general liability and automobile liability insurance
policies for any claims arising out of work performed under this Agreement.
2. Insurance coverages shall be as follows:
A. Workers' Compensation & Employer's Liability. The Service Provider shall
maintain during the life of this Agreement for all of the Service Provider's
employees engaged in work performed under this agreement:
1. Workers' Compensation insurance with statutory limits as required by
Colorado law.
2. Employer's Liability insurance with limits of $100,000 per accident,
$500,000 disease aggregate, and $100,000 disease each employee.
B. Commercial General & Vehicle Liability. The Service Provider shall maintain
during the life of this Agreement such commercial general liability and automobile
liability insurance as will provide coverage for damage claims of personal injury,
including accidental death, as well as for claims for property damage, which may
arise directly or indirectly from the performance of work under this Agreement.
Coverage for property damage shall be on a "broad form" basis. The amount of
insurance for each coverage, Commercial General and Vehicle, shall not be less
than $1,000,000 combined single limits for bodily injury and property damage.
In the event any work is performed by a subcontractor, the Service Provider shall
be responsible for any liability directly or indirectly arising out of the work
performed under this Agreement by a subcontractor, which liability is not covered
by the subcontractor's insurance.
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EXHIBIT E
CONFIDENTIALITY
IN CONNECTION WITH THE SERVICES to be provided by Professional under this
Agreement, the parties agree to comply with reasonable policies and procedures with regard to
the exchange and handling of confidential information and other sensitive materials between the
parties, as set forth below.
1. Definitions.
For purposes of this Agreement, the party who owns the confidential information and is
disclosing same shall be referenced as the “Disclosing Party.” The party receiving the
Disclosing Party’s confidential information shall be referenced as the “Receiving Party.”
2. Confidential Information.
Confidential Information controlled by this Agreement refers to information which is not
public and/or is proprietary and includes by way of example, but without limitation, City
customer information, utility data, service billing records, customer equipment information,
location information, network security system, business plans, formulae, processes,
intellectual property, trade secrets, designs, photographs, plans, drawings, schematics,
methods, specifications, samples, reports, mechanical and electronic design drawings,
customer lists, financial information, studies, findings, inventions, and ideas.
To the extent practical, Confidential Information shall be marked “Confidential” or
“Proprietary.” Nevertheless, Professional shall treat as Confidential Information all customer
identifiable information in any form, whether or not bearing a mark of confidentiality or
otherwise requested by the City, including but not limited to account, address, billing,
consumption, contact and other customer data. In the case of disclosure in non-
documentary form of non-customer identifiable information, made orally or by visual
inspection, the Disclosing Party shall have the right, or, if requested by the Receiving Party,
the obligation to confirm in writing the fact and general nature of each disclosure within a
reasonable time after it is made in order that it is treated as Confidential Information. Any
information disclosed to the other party prior to the execution of this Agreement and related
to the services for which Professional has been engaged shall be considered in the same
manner and be subject to the same treatment as the information disclosed after the
execution of this Agreement with regard to protecting it as Confidential Information.
3. Use of Confidential Information.
Receiving Party hereby agrees that it shall use the Confidential Information solely for the
purpose of performing its obligations under this Agreement and not in any way detrimental
to Disclosing Party. Receiving Party agrees to use the same degree of care Receiving Party
uses with respect to its own proprietary or confidential information, which in any event shall
result in a reasonable standard of care to prevent unauthorized use or disclosure of the
Confidential Information. Except as otherwise provided herein, Receiving Party shall keep
confidential and not disclose the Confidential Information. The City and Professional shall
cause each of their directors, officers, employees, agents, representatives, and
subcontractors to become familiar with, and abide by, the terms of this section, which shall
survive this Agreement as an on-going obligation of the Parties.
Professional shall not use such information to obtain any economic or other benefit for itself,
or any third party, other than in the performance of obligations under this Agreement.
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4. Exclusions from Definition.
The term “Confidential Information” as used herein does not include any data or information
which is already known to the Receiving Party or which before being divulged by the
Disclosing Party (1) was generally known to the public through no wrongful act of the
Receiving Party; (2) has been rightfully received by the Receiving Party from a third party
without restriction on disclosure and without, to the knowledge of the Receiving Party, a
breach of an obligation of confidentiality; (3) has been approved for release by a written
authorization by the other party hereto; or (4) has been disclosed pursuant to a requirement
of a governmental agency or by operation of law.
5. Required Disclosure.
If the Receiving Party is required (by interrogatories, requests for information or documents,
subpoena, civil investigative demand or similar process, or by federal, state, or local law,
including without limitation, the Colorado Open Records Act) to disclose any Confidential
Information, the Parties agree the Receiving Party will provide the Disclosing Party with
prompt notice of such request, so the Disclosing Party may seek an appropriate protective
order or waive the Receiving Party’s compliance with this Agreement.
The Receiving Party shall furnish a copy of this Agreement with any disclosure.
6. Notwithstanding paragraph 5, Professional shall not disclose Confidential Information to any
person, directly or indirectly, nor use it in any way, except as required or authorized in
writing by the City.
7. Red Flags Rules.
Professional must implement reasonable policies and procedures to detect, prevent and
mitigate the risk of identity theft in compliance with the Identity Theft Red Flags Rules found
at 16 Code of Federal Regulations part 681. Further, Professional must take appropriate
steps to mitigate identity theft if it occurs with one or more of the City’s covered accounts
and must as expeditiously as possible notify the City in writing of significant breeches of
security or Red Flags to the City.
8. Data Protection and Data Security.
In addition to the requirements of paragraph 7, Professional shall have in place information
security safeguards designed to conform to or exceed industry best practices regarding the
protection of the confidentiality, integrity and availability of utility and customer information
and shall have written agreements requiring any subcontractor to meet those standards.
These information security safeguards (the “Information Security Program”) shall be
materially consistent with, or more stringent than, the safeguards described in this Exhibit.
a) Professional’s information security safeguards shall address the following elements:
• Data Storage, Backups and Disposal
• Logical Access Control (e.g., Role-Based)
• Information Classification and Handling
• Secure Data Transfer (SFTP and Data Transfer Specification)
• Secure Web Communications
• Network and Security Monitoring
• Application Development Security
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• Application Security Controls and Procedures (User Authentication, Security
Controls, and Security Procedures, Policies and Logging)
• Incident Response
• Vulnerability Assessments
• Hosted Services
• Personnel Security
b) Subcontractors. Professional may use subcontractors, though such activity shall not
release or absolve Professional from the obligation to satisfy all conditions of this
Agreement, including the data security measures described in this Exhibit, and to require
a substantially similar level of data security, appropriate to the types of services provided
and Customer Data received, for any subcontractor Professional may use. Accordingly,
any release of data, confidential information, or failure to protect information under this
Agreement by a subcontractor or affiliated party shall be attributed to Professional and
may be considered to be a material breach of this Agreement.
9. Confidential Information is not to be stored on any local workstation, laptop, or media such
as CD/DVD, USB drives, external hard drives or other similar portable devices unless the
Professional can ensure security for the Confidential Information so stored. Work stations or
laptops to be used in the Work will be required to have personal firewalls on each, as well as
have current, active anti-virus definitions.
10. The Agreement not to disclose Confidential Information as set forth in this Exhibit shall apply
during the term of the Work and at any time thereafter unless specifically authorized by the
City in writing.
11. If Professional breaches this Agreement, in the City’s sole discretion, the City may
immediately terminate this Agreement and withdraw Professional’s right to access
Confidential Information.
12. Notwithstanding any other provision of this Agreement, all material, i.e., various physical
forms of media in which Confidential Information is contained, including but not limited to
writings, drawings, tapes, diskettes, prototypes or products, shall remain the sole property of
the Disclosing Party and, upon request, shall be promptly returned, together with all copies
thereof to the Disclosing Party. Upon such return of physical records, all digital and
electronic data shall also be deleted in a non-restorable way by which it is no longer
available to the Receiving Party. Written verification of the deletion (including date of
deletion) is to be provided to the Disclosing Party within ten (10) days after completion of
engagement, whether it be via termination, completion or otherwise.
13. Professional acknowledges that the City may, based upon the representations made in this
Agreement, disclose security information that is critical to the continued success of the City’s
business. Accordingly, Professional agrees that the City does not have an adequate remedy
at law for breach of this Agreement and therefore, the City shall be entitled, as a non-
exclusive remedy, and in addition to an action for damages, to seek and obtain an injunction
or decree of specific performance or any other remedy, from a court of competent
jurisdiction to enjoin or remedy any violation of this Agreement.
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EFT&UCC
Filed with
County • LA
City Finance
Invoiced for
Contractor
Payments
_J LA
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