Request for City Council Action Date: October 14, 2014 Agenda Section: Consent Agenda

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1 Request for City Council Action Date: October 14, 2014 Agenda Section: Consent Agenda No. 5 Item: An ordinance amending Title 1 of the Carbondale Revised Code as it relates to duties of the Community Development Loan and Grant Review Board Originating Department: Office of the City Manager Approved: No Background and Summary: An important component to the City s economic development activities is the revolving loan fund (RLF). The RLF provides capital to small businesses interested in starting or expanding a business in Carbondale. RLF loans can be used to purchase property and equipment and can also be used for working capital. These loans must be used in conjunction with a traditional bank loan and often provide the gap funds needed to help small businesses start or expand a business. RLF applications are reviewed and processed by City staff. An additional requirement of RLF applications is that they be reviewed by a Community Development Loan and Grant Review Board. This board consists of local residents that have expertise in banking, finance, or related financial matters. Although the board s role is advisory only, the RLF application process requires that the board chairperson provide written signature indicating the board s recommendation to approve or disapprove the application. Since board members are part of Carbondale s financial community, conflicts of interest sometimes arise because applicants often have established relationships with the financial institutions that board members work for. These conflicts preclude board members from reviewing or finalizing the review process which creates problems for staff in completing applications. Section 1-14B of the Carbondale Revised Code establishes the Community Development Loan and Grant Review Board. Excluded from this section is the establishment of a seniority policy that authorizes board members, other than the chairperson, to provide signature so staff can finalize the application process on RLF loans. Adding a seniority plan to section 1-14B can mitigate future conflicts of interest by providing authority to board members to act on behalf of the chairperson when conflicts do arise. Recommended Action: It is recommended that the City Council approve an ordinance to amend Section 1-14B of the Carbondale Revised Code to establish a seniority policy for the Community Loan and Grant Review Board. Engineering Finance Legal Manager's Council Action: Motion by 2nd by to

2 CITY OF CARBONDALE, ILLINOIS ORDINANCE NO AN ORDINANCE AMENDING TITLE ONE OF THE CARBONDALE REVISED CODE AS IT RELATES TO DUTIES OF THE COMMUNITY DEVELOPMENT LOAN AND GRANT REVIEW BOARD ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARBONDALE, ILLINOIS THE 14 TH DAY OF OCTOBER, 2014 Published in pamphlet form by authority of the City Council of the City of Carbondale, Jackson County, Illinois, this 15 th day of October, CERTIFICATE OF PUBLICATION I, Jennifer R. Sorrell, the duly qualified City Clerk of the City of Carbondale, Illinois, and the official custodian of the records of said City, do hereby certify that this Ordinance was published in pamphlet form by authority of the City Council on the 15 th day of October, Jennifer R. Sorrell, City Clerk

3 ORDINANCE NO AN ORDINANCE AMENDING TITLE SIXTEEN OF THE CARBONDALE REVISED CODE AS IT RELATES TO DUTIES OF THE COMMUNITY DEVELOPMENT LOAN AND GRANT REVIEW BOARD WHEREAS, the City of Carbondale, Illinois is a home rule unit of local government under the Illinois Constitution, 1970, Article VII, Section 6; and WHEREAS, pursuant to Article VII, Section 6(a), of the Illinois Constitution, 1970, the City of Carbondale may exercise any power and perform any function pertaining to its government and affairs including, but not limited to, the power to regulate for the protection of the public health, safety, morals and welfare; and WHEREAS, the City Code of the City of Carbondale, Illinois, under Title 1, Chapter 14, Article B-3 outlines the duties of the Community Development Loan and Grant Review Board; and WHEREAS, the City Council of the City of Carbondale finds that it is in the best interest of the City of Carbondale to amend Title 1, Chapter 14, Article B-3 of the Carbondale Revised Code. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CARBONDALE, ILLINOIS, AS FOLLOWS: SECTION 1. That Section 1-14B-3 of the Revised Code of the City of Carbondale is hereby amended as follows: 1-14B-3 DUTIES: A. Meetings: The board shall meet at least once annually in person and at such times as is directed by the chairperson or at the request of three (3) members. The chairperson shall be appointed by the mayor. All requests for grants or loans proposed to be made by the city or any division thereof, or by any entity contracting with the city from funds enumerated as provided in this article shall be forwarded to the board after review by appropriate city staff. The board shall

4 review said request, and make recommendation to the city manager within thirty (30) days from the receipt of said request. The board shall advise the city manager of its recommendation, which recommendation shall be advisory only. B. Seniority: The board shall be required to submit its recommendation of approval or disapproval of loan applications to the City Manager with the written signature of the board chairperson. In the event that a conflict of interest, absence, or other event arises which renders the chairperson unavailable to fulfill their duties, the remaining board members shall assume the approval authority of the chairperson based on seniority. Seniority shall be established by date of appointment to the board with the earliest appointment being most senior. B.C. C.D. Seek Additional Information: The board shall have the authority to request additional information concerning any loan or grant request which the board feels is relevant, and shall have the authority with the consent of the city manager to prescribe the form upon which said request shall be made. Observe Confidentiality: Members of the board shall comply with the requirements of the city concerning ethics disclosure, and shall complete the ethics disclosure form required by subsection 1-5-7D of this title. No member shall make any recommendation concerning any loan or grant, or discuss any loan or grant request which involves a relative within the second degree of kinship of any said member, or any request which will directly or indirectly financially benefit the member. (Ord ) SECTION 2. All of the remaining sections of Title 1 of the Carbondale Revised Code shall remain in full force and effect. SECTION 2. That all ordinances and parts thereof in conflict herewith are expressly repealed and are of no other force and effect. SECTION 3. The repeal of any ordinance by this Ordinance shall not affect any rights accrued or liability incurred under said repealed ordinance to the effective date hereof. The provisions of this Ordinance, insofar as they are the same or substantially the same as those of any prior ordinance, shall be construed as a continuation of said prior ordinance.

5 SECTION 4. That it is the intention of the City Council of the City of Carbondale that this Ordinance and every provision thereof shall be considered separable, and the invalidity of any section, clause, or provision of this Ordinance shall not affect the validity of any other portion of this Ordinance. SECTION 5. That the City Council of the City of Carbondale finds that the subject matter of this ordinance pertains to the government and affairs of the City of Carbondale and is passed pursuant to the provisions of Article VII, Section 6(a) of the 1970 Illinois Constitution. SECTION 6. That this Ordinance shall take effect upon its passage, approval, recording, and publication in pamphlet form in accordance with law. APPROVED: Donald D. Monty, Acting Mayor ATTEST: Jennifer R. Sorrell, City Clerk APPROVED AS TO LEGALITY AND FORM: P. Michael Kimmel, City Attorney

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