AGR-6980.04 - VHT ENTERPRISES LLC DBA ORANGE HAND CAR WASH - SMALL BUSINESS ASSISTANCE GRANT; COVID-19 PANDEMICF,GR-b oa-
CITY OF ORANGE
SMALL BUSINESS
ASSISTANCE PROGRAM GRANT AGREEMENT
This SMALL BUSINESS ASSISTANCE PROGRAM G tANT AGREEMENT
Grant Agreement")is made and entered into as of the day of C9 a e,r,2020 ("Effective
Date") by and between the CITY OF ORANGE, a municipal corporation ("City"), and VHT
ENTERPRISES, LLC, ("Recipient"), doing business as ORANGE HAND CAR WASH, a
California limited liability company with reference to the following:
RECITALS
WHEREAS, the novel coronavirus (COVID-19) has become a world-wide pandemic, in '
which the federal, state, county and city governments, including the City of Orange, have all
declared a state of emergency; and
WHEREAS, the efforts to minimize the spread of COVID-19 have, among other things,
created for many Orange businesses the loss of income as a result of a significant reduction of
hours and operations,hindering the ability to keep up with payrolls, rents,mortgages, utility bills,
business operations and other related expenses; and.
WHEREAS, the City has determined that encouraging and promoting stability among
commercial businesses and their employees is conducive to the public health and welfare of the
City; and
WHEREAS, the Community Development Block Grant program has made available to
the City,funds to be used for certain specific purposes related to small businesses and the retention
of their low-and moderate-income employees; and
WHEREAS, the City wishes to grant to Recipient, and Recipient wishes to receive said
grantfunds.
NOW, THEREFORE, both the City and Recipient, in consideration of the mutual
promises, covenants and conditions.contained herein and the substantial public benefits to be
derived therefrom, do hereby agree as follows:
AGREEMENT
1. Purnose of Grant. This Small Business Assistance Program Grant ("GranY') is
awarded by the City to Recipient for the sole purpose of retaining low- and moderate-income
employees, defined as employees earning < 80% of the HLTD Area Median Income during the
economic erriergency caused by the COVID-19 pandemic.
2. Total Amount of Grant. The Grant awarded to Recipient shall be in the amount
of TWENTY THOUSAND DOLLARS and 00/100 ($20,000.00), payable in one lump sum, and
subject to the terms and conditions contained herein.
3. Recipient Obli ations.
A. Recipient acknowledges the certifications and promises contained in the
Small Business Assistance Program Participant Certification, attached as Exhibit "A" and
incorporated herein, including acknowledgement of the federal prohibition on the receipt of
benefits, including insurance payments, totaling more than the documented losses for the
applicable period of time and the promise to repay any such excess assistance, and agrees to abide
by them during the term of this Grant Agreement.
B. Recipient shall retain those employees designated in the Grant Application
approval as low- and moderate-income for a period not less than ninety (90) days after receipt of
the Grant at the same or better rate of pay and with the same or better benefits as those existing as
of the date of this Grant Agreement.
C. Recipient shall maintain payroll records showing the date, designated
employee's name, rate of pay, and benefits during the term of this Grant Agreement. At the
expiration of ninety (90) days after receipt of the Grant, Recipient shall submit to the City the
Certification of Compliance letter that is attached hereto as Exhibit"B" and provide the required
payroll records and any additional documentation requested by the City. City shall review said
records for compliance with the terms and conditions of this Grant Agreement.
4. Review of Payroll Records by Citv. After review of the Certification of
Compliance letter, the payroll records and any other documentation submitted by Recipient, City
will either:
A. Approve said records,in which case Recipient will not incur any obligation
to repay the Grant and this Grant Agreement will terminate; or
B. Disapprove said records, in which case Recipient will be obligated to repay
to City those amounts determined by City to have been not used for the intended purpose of this
Grant Agreement.
5. Repavment of Grant. If Recipient is required to repay all or part of the Grant,
said repayment to City shall be made according to a schedule as determined by the City.
6. Governin Law and Venue. This Grant Agreement shall be construed in
accordance with and governed by the laws of the State of California and Recipient agrees to submit
to the jurisdiction of California courts. Venue for any dispute arising under this Grant Agreement
shall be in Orange County, California.
7. Inte ration. This Grant Agreement constitutes the entire agreement of the parties.
No other agreement, oral or written, pertaining to the duties and obligations of each party under
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this Grant Agreement shall be of any force or effect unless it is in writing and signed by both
parties.
8. Notice. Except as otherwise provided herein, all notices required under this Grant
Agreement shall be in writing and delivered personally, by e-mail, or by first class U.S. mail,
postage prepaid, to each party at the address listed below. Either party may change the notice
address by notifying the other party in writing. Notices shall be deemed received upon receipt of
same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e-
mail shall be deemed received on the date of the e-mail transmission.
RECIPIENT" CITY"
VHT Enterprises, LLC City of Orange
4301 E. Chapman Avenue 300 E. Chapman Avenue
Orange, CA 92869 Orange, CA 92866-1591
Attn.: Victor Torrico Attn.: Aaron Schulze
Telephone: 310-489-0014 Telephone: 714-744-2202
E-Mail: Vic@orangehandwash.com E-Mail: aschulze@cityoforange.org
9. Counterparts. This Grant Agreement may be executed in one :or...,more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Signatures transmitted via facsimile and electronic mail shall have
the same effect as original signatures.
IN WITNESS of this Grant Agreement,the parties have entered into this Grant Agreement
as of the year and day first above written.
RECIPIENT" CITY"
VHT ENTERPRISES, LLC, CITY OF ORANGE, a municipal corporation
a California limited liability company
By. By;
Printed Name: Victor Torrico Rick tto, City Manager
Title: Owner
B : APPROVED AS TO FORM:
Printe o orrico
Title: Co-Owner
Mary E. Bin ng
Senior Assistant City Attorne
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EXHIBIT "A"
CITY OF ORANGE
SMALL BUSINE55 ASSISTANCE PROGRAM
PARTICIPANT CERTIFICATION
Beneath this sheet]
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Ci y of
City of Orange
Small Business
Assistance Program
APPLICATI N PACKET
Applications accepted beginning May 26, 2020
The purpose of this g rant program is to assist small business owners in Orange that have been adversely
affected-by COVID-19 to retain jobs that are held by their low and moderate-income workers. Funds will
be provided to assist with payroll costs for qualified small businesses that pledge to keep their low and
moderate-income employees employed far three months after receiving the grant.
Who can qualify?
1. The business is physically located in Orange, has been in the City for a minimum of one year and
is not a franchise or part of a chain of more than three locations,
2. The business is a for profit business with at least 2, but not more than 50 employees.
3. The business has gross annual revenues of at least $100,OOd, but no more than $5 million.
4. The business has experienced at least a 25% reduction in revenue due to COVID-19 and is
able to provide documentation showing the loss in revenue.
5. 50% of employees of the business meet low- and moderate-income requirement of <_80% of the
HUD Area Median Income.
6. .The business continues to operate legally during the COVID-19 crisis and the designated
employees are actively working at the business.
7. The business has not received full coverage of employee payroll from an insurance provider or
any other entity.
8. The business has had no major code violations in the last twelve months.
9. Adult businesses, massage parlors,and largely cash-based businesses are not eligible.
10. Individuals that own or have interest in more than one business may be limited to one grant total
i.e., if a person has ownership interest in three businesses, only one of those businesses may
receive a grant under this program).
How much is the grant?
The grant is to be used for payroll costs for your low- and moderate-income employees for three months
up to a maximum of$20,000.
How do I appl
Complete the Grant Application online at www.citvoforanpe.ora and attach all the required information
on the Document Checklist. You will receive an email advising you that your application has been
received. An incomplete application will delay the review of your application. Listed documentation is a
minimum requirement and staff may request additional documentation to determine eligibility.
If you have any questions, please email Aaron Schulze, Senior Administrative Analyst at
aschulzeCa citvoforanae.orp, or call (714) 744-2202. Funding is limited and will be disbursed on a first
come, first served basis.
Small Business Assistance Program Application
BUSINESS INFORMATION ,.< k
Name of Business
Orange Hand Car Wash
7ype of Business(e.g.,LLC,corporation,sole proprietorship)
VHT Enterprises, LLC.
Address of Business
4301 E Chapman Ave
Business Employer ldentification Number(EIN) Years in Business
of Employees of Employees Meeting Low/Mod Incane City Business License Number
15
Requirement
14 172527
s--,-
y.owNER'
INFORMA710N '
OWNER CO-OWNER
Name Name
ictor Torrico ugo Torrico
Soclal Security Number 3CqnTaci Phc n(area code) S i urity Number pt 1 e(area code)
i u4tSyUU u
Present Address(street,city,state,zip)Present Address(street,city,state,zip)
3225 Greenvale Cir, Corona CA 92882 8301 Kingsdale Dr Huntington Beach CA 92646
Email Address Email Address
Vic@orangehandwash.com Prerunner2@aol.com
INCOME .
REQUIREMENTS
e Income Verification Form for c tails on income requirements for eligible employees. ~
BUSINESS INCOME INFORMATION
2019 INCOME 2020 INCOME(USE THE SAME MONTHS AS 2019)
Month#1 Gross Sales 94695 Month#1 Gross Sales 27608
Month of MARCH Month ofAPRL
Month#2 Gross Sales 117609 Month#2 Gross Sales 29627
Month of APRIL Month of MAY
Please provide a brief explanation of the adverse economic effects COVID-19 has had on your business:
We had to shut our business down for a period of time due to COVID and state requirements. During that time we
suffered financial losses, which made,it difficult for the business to survive after opening.
REQUIRED DOCUMENTS—SEE DOCUMENT CHECKLIST FOR DOCUMENTS ACCEPTED FOR VERIFlCATION
1. Revenue statements for 2 months in 2020 verifying 25% less revenue than the same months in 2019
2. Revenue statements for the same two months in 2019
2. Annual revenue statement for 2019
3. Payroll records for each qualifying employee
4. Documentation for any other CARES Act funds that you have received (PPP, EIDL...etc.)
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Small Business Assistance Program Application
ACKNt WLEDGMENT AND CERTIFICA770N
Acknowiedgement: IMIe understand that this grant is being provided by the City of Orange based solely upon
the information that I/we have provided in this application. I/We also cert'rfy that there are no outstanding tax
liens or legal judgements against the business.
Certification: I/We certify that the information provided in this application is true and complete to the best of
my/our knowledge as of the date set forth opposite my/our signature(s) in this application and acknowledge
my/our understanding that any intentional or negligent misrepresentation(s) of the information contained in this
application may result in civil liability and/or criminal penalties.
By signing below, I/we certify that the above statements are true and correct to the best of my/our knowledge.
I/We understand that a false statement may disqualify me/us from benefits.
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Ka.:a3 e«,o,aa<3 a,s a,aAe aneoaea„a aae,e a,,,p5a,......_. 9/15/2020
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City of 4range
Small Business Assistance Program
Owner Participant Certification
Business Name Orange Hand Car VUash
Business Address 4301 E. chapman Ave
In order to participate in the City of Orange Small Business Assistance Program ("Program")
and receive a grant, the City of Orange ("City") requires that you ("Recipient") and your staff,
if applicable, certify the following:
You own a small business that employs between 2 and 50 employees.
Your business is operating during the COVID-19 crisis and your qualified employees are
working at the business.
50% of your employees who are holding the jobs retained, make less than the low- and
moderate-income requirement of <_80% of the H U D Area Median Income (see Income
Verificatian Form for details).
Your business has been in operation in Orange for at least one year.
Your business has experienced a revenue decrease of at least 25% compared to 2019,
because of the impact of COVID-19.
Your business is not a franchise and is not a chain of four or more locations.
You commit to continue operating and keep your low and moderate-income
employees employed at your business for a minimum of three months after receipt
of the grant funds.
Notwithstanding any other rights of the City under other Sections af this Certification or applicable
law, if the Recipient violates any of the terms, covenants or provisions of the Certification, or if
any representation or warranty made by the Recipient in this Certification or in any document
or application submitted in connection with this Certification or the Program shall prove false or
misleading, or if, in the sole judgment of the City, the conduct of the Recipient is such that the
interests of the City have been or are likely to be impaired or prejudiced, the City shall thereupon
have the right to terminate any grant or withhold payments due under the Program and/or demand
and obtain the return of payments already made which are equal to the damages the City may
have already suffered due to a breach by the Recipient. Any such action by the City shall not give
rise to any cause of action for damages against the City.
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CERTIFICATIONS
1) I certify that my business has been in operation for at least one year in the City of
Orange.
2) I certify that I currently employ a total of 15 employees.
3) I certify that at least 50% of my current employees make less than the low- and
moderate-income requirement of s80% of the HUD Area Median Income.
4) I certify that as a result of COVID-19, my business experienced at least a 25%
decrease in revenue for two consecutive months after January 1 st, 2020, compared
to the average revenue for the same two-month period in calendar year 2019 (or
average monthly revenue based on total 2019 sales).
5) I certify that my business did not receive full coverage of employee payroll from an
insurance provider or any other entity.
6) I certify that the total CARES Act assistance (PPP, EIDL...etc.) that my business has
r'eCeived iS $,,F nnn nn
7) I certify that my business is continuing to operate during the COVID-19 crisis.
8) I certify that my business will retain and pay the listed employees their salary
for a three-month period commencing on the date of receiving their
reimbur.sement and the employee is working at the business.
9) I certify that my business will comply with all laws and rules applicable to the
program, including City, state and federal laws.
10) I certify that I have not misrepresented the eligibility of my business for the Program.
By signing below, I certify that the above statements are true and correct to the best of
my knowledge and belief. I understand that willful or fraudulent submission of a materially
false statement in connection with this certification may disqualify my business from
eligibility for the Program benefits and may subject my business or myself to criminal
charges.
This certification shall be deemed executed in the City of Orange and State of California
and shall be governed and construed in accordance with the laws of the State of
California and the laws of the United States.
o„ee,.==.m,00Loo a.em . ........
GY''09/15/2020
Business Owner Signature) Date)
as,a,,=„m,..n,.am____ .
I 09/15/2020
Business Owner Signature) Date)
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City of Orange
Small Business Assistance Program—Document Checklist
Document Why we need this Documents accepted
Signed particlpation Verification that the business employs between 2 and
certification 50 empioyees,has experienced a loss of revenue,has
a commitment to retain employees by participating in
this program, employees meet income qualifications
and has not already been fully reimbursed by
insurance for wages.
Revenue statements for pocumentation of revenue following COVID-19 impact One or more of the following for the entire impacted period:point-of-
two consecutive months in sales reports, sales reports{demonstrating fees collected or earned
2020 income), bank statements, quarterly sales tax filings, or CPA-
certified profit&loss statements for two consecutive months in 2020
Revenue statements for Comparison of lypical operating revenue to verify One or more of the foifowing for the same two months in 2019:
the same two consecutive loss of revenue as a result of COVID-19 point-of-sales reports,sales reports(demonstrating fees collected
months in 2019 or earned income),bank statements,quarterly sales tax filings,r
CPA-certified profit&loss statements for two consecutive months
in 2019
Annual revenue statements Comparison of typical operating revenue to verify One or more of the following for total 2019 sales:point-of-sales
for 2019 loss of revenue as a result of COVID-19 reports,sales reports {demonstrating fees collected or earned
income), bank statements,quarterly sales tax filings, 2019 tax
returns, CPA-certified profit & loss statements, 2019 Tax
Returns{alt pages),or Federal 990
Income Verification forms To determine if your employees meet the income
filled out and signed by each requirements for the program C lick Here for Income Verification Form
employee}
Payroll records for each To verify employment Payroll records or cancelled checks to each employee
employee
Proof of Orange location To verifythat the business is located in the City City of Orange business license number on application,signed
federal tax forms,signed copy of lease agreement,or 3 months
of operational bills
If you do nof have a Clty buslness Ilcense you wlll be requlred to obtaln
one prlor to fund dlstr/butlon
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EXHIBIT "B"
CERTIFICATION OF COMPLIANCE
Beneath this sheet]
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Date:
Lisa Tamburelli
Community Services Department
City ofi Orange
300 East Chapman Avenue
Orange, California 92866
Re: Certification of Compliance Pursuant to City of Orange Small Business
Assistance Program Grant Agreement
Dear Ms. Tamburelli:
This Certification is submitted to the City of Orange in accordance with the Small
Business Assistance Program Grant Agreement ("Agreement"), and constitutes the Final
Compliance Report. The undersigned authorized. representative(s) of VHT
ENTERPRISES, LLC, doing business as ORANGE HAND CAR WASH hereby certifies(y)
each of the following statements:
1.The 90-day compliance period for this Agreement began on October 13, 2020,
and ended on January 13, 2021:
2. During the compliance period, the business continued to operate legally.
3. During the co npliance period, the business continued to employ all of its Low- and
Moderate-Income (LMI) employees.
4. Both prior to and during the compliance period, the business did not receive
federal, state or local assistance or insurance payments totaling more than the
documented losses for the applicable period of time.
5. The enclosed payroll documentation is accurate and reflects the continued
employment of the LMI employees.
Dated:
Signature:
By: Victor Torrico / Huqo Torrico
Title: Owner / Co-Owner