LRAC PKT 04-18-2013 CITY OF
Federal Way
CDBG Loan Review Advisory Committee
April 18, 2013
5:30— 7:30 pm
Hylebos Room
A�enda
1. Call to Order Chair Evans
2. Roll Call Catalano
3. Committee Member Reports Chair Evans
4. New Business Chair Evans
5. Old Business
a) Resubmitted Universal Cartridge application Dunn/Bartlett
6. StafF Reports
7. Adjournment
Next regularly scheduled meeting:
July 17, 2013
5:30—7:30 pm
Hylebos Conference Room
CITY OF FEDERAL WAY
LOAN REVIEW ADVISORY COMMITTEE
SPECIAL MEETING SUMMARY
JAN UARY 16, 2013
COMMITTEE MEMBERS PRESENT: Graham Evans; Donald Bartlett; Keven Dunn;
Frank Spicer; Lori DeVore.
COMMISSION MEMBERS ABSENT: Mark Hutson.
STAFF PRESENT: Jay Bennett, Community Services Manager; Dee Dee Catalano,
CDBG/Human Services Coordinator.
GUESTS: None.
CALL TO ORDER
The meeting was called to order at 5:30 pm.
ROLL CALL
Dee Dee Catalano took the roll.
APPROVAL OF November 14, 2012 MINUTES
Keven Dunn moved approval of the November 14, 2012 minutes. Frank Spicer
seconded the motion, which carried 5— 0.
COMMITTEE MEMBER REPORTS
None.
NEW BUSINESS
a) Universal Cartridge Application
The lead review team (Team #1), Donald Bartlett and Keven Dunn, reviewed the
strengths and weaknesses of the Universal Cartridge loan application, as well as
suggestion on how the application could be improved. The Committee discussed the
application.
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Donald Bartlett moved to not forward the Universal Cartridge application to
underwriting. Keven Hutson seconded the motion, which carried 5 —0.
Jay Bennett will draft a letter to Universal Cartridge informing them of the Committee's
recommendation and outlining how the application may be improved for their
resubmittal.
Jay Bennett said the Committee will next review an application from Geeks @ Site. Lori
DeVore disclosed that she has used their services in the past and did not feel that she
should serve on the lead review team. Mark Hutson will take her place on the lead
review team along with Frank Spicer.
b) Loan Performance Reports
None at this time.
OLD BUSINESS
a) Change Regular LRAC Meeting Date
Jay Bennett said that the original regular meeting dated selected by the Committee
conflicts with the quarterly Diversity Commission meeting. The Committee agreed to
change the regular meeting date to the third Wednesday of the month following the end
of the quarter. The remaining dates in 2013 are April 17, July 17, and October 16.
STAFF REPORTS
a) Current Loan Fund Balances
Jay Bennett reported that all loan fund balances are at 100%. Some changes will be
made to loan maximum amounts in the loan policies and procedures.
b) Loan Servicing Agreement
Jay Bennett reported that negotiations have ended with Community Capital without
coming to an agreement about loan underwriting services. The Washington State
Microenterprise Association has submitted a proposal to perForm the underwriting
services. Jay will be reviewing the proposal.
c) Mock Audit of CDBG Program
Jay Bennett informed the Committee that a consultant was hired to do a mock audit of
the City's CDBG program as a way to prepare for a future audit by HUD. The consultant
was very positive about the CDBG program, including economic development.
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d) Pending Applications
Jay Bennett said he received an application from Geeks @ Site on January 8, 2013.
ADJOURNMENT
The meeting adjourned at 6:25 pm.
NEXT MEETING
Regular Meeting
April 17, 2013
5:30 —7:30 pm
Hylebos Room
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CITY OF FEDERAL WAY
LOAN REVIEW ADVISORY COMMITTEE
SPECIAL MEETING SUMMARY
FEBRUARY 11, 2013
COMMITTEE MEMBERS PRESENT: Graham Evans; Donald Bartlett; Keven Dunn.
COMMISSION MEMBERS ABSENT: Frank Spicer; Lori DeVore; Mark Hutson.
STAFF PRESENT: Jay Bennett, Community Services Manager; Dee Dee Catalano,
CDBG/Human Services Coordinator; Amy Jo Pearsall, City Attomey.
GUESTS: Rich Shockley, Highline Community College; Phon Sivongxay, Highline
Community College.
CALL TO ORDER
The meeting was called to order at 12:02 pm.
ROLL CALL
Dee Dee Catalano took the roll.
COMMITTEE MEMBER REPORTS
Graham Evans and Lori DeVore disclosed potential conflicts of interest.
NEW BUSINESS
a) Geeks@Site Application
Jay Bennett summarized the Geeks@Site application in lieu of Lead Review Team #2
(Frank Spicer and Mark Hutson) who could not be in attendance, and reviewed the
strengths and weaknesses of the application. He said that Lead Review Team #2
recommended that the application not be submitted to underwriting. They suggested
that the applicant receive more technical assistance from Highline Community College
StartZone.
Keven Dunn moved to not refer the Geeks@Site application to underwriting
based on the recommendation of Lead Review Team #2. Donald Bartlett
seconded the motion, which carried 3—0.
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OLD BUSINESS
a) Resubmitted Universal Cartridge Application
Jay Bennett said that at the January 16, 2013 meeting the LRAC voted not to forward
the Universal Cartridge application to underwriting. Following the meeting, the applicant
submitted a revised business plan and letters of interest for Universal Cartridge for the
Committee's re-consideration. Loan Review Team #1, Donald Bartlett and Keven Dunn,
reviewed the submitted documentation.
Donald Bartlett and Keven Dunn summarized their review of the re-submitted
documents. Charles Gathu, owner of Universal Cartridge, spoke to the Committee and
responded to some of their questions and concems.
Rich Shockley and Phon Sivongxay of Highline Community College (HCC) said they
would like to continue to work with Charles Gathu to address the Committee's concems
and work on revising the resubmitted application further.
The Committee asked Charles Gathu to respond in writing to additional concerns before
the next LRAC meeting on April 17. Lead Review Team #1 will review the material and
' make a report to the full Committee at the April 17 meeting.
STAFF REPORTS
None.
ADJOURNMENT
The meeting adjoumed at 12:54 pm.
NEXT MEETING
Regular Meeting
April 17, 2013
5:30 -7:30 pm
Hylebos Room
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