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HomeMy WebLinkAbout04-05-2021 Agenda Packet Contract for Services for the Open To Business Program THIS AGREEMENT is dated March 2, 2021 and is between the Dakota County Community Development Agency and Metropolitan Consortium of Community Developers, a Minnesota nonprofit corporation MCCD WHEREAS, the CDA, on behalf of itself and the eleven political subdivisions of the State of Minnesota listed on Exhibit A hereto (the ), which each have powers with respect to a city with a population over 10,000 (collectively Municipalities), wishes to engage MCCD to render Open To Businessan initiative providing small business technical assistance services to existing businesses and residents and other parties interested in opening a business within Dakota County (the County Initiative; and WHEREAS, MCCD has successfully provided the services required to administer and carry out the Initiative in Dakota County from 2013 - 2020; and WHEREAS, pursuant to CDA Resolution No. 21-6387, adopted on February 16, 2021 (the Resolution, the CDA is authorized to enter into this agreement with MCCD for the Initiative; and WHEREAS, pursuant to the Resolution and certain joint powers agreements to be entered into between the CDA and the Local Government Entities Joint Powers Agreements, the CDA will act as fiscal agent for the Local Government Entities in connection with this Agreement; and WHEREAS, the CDA will pay from its own funds 50% of the fee charged by MCCD for the Initiative in the Municipalities and 100% of the fee charged by MCCD for the Initiative in the small cities and townships within the County with populations of less than 10,000 people as further described herein and in Exhibit A; and WHEREAS, pursuant to the Joint Powers Agreements, the Local Government Entities will be required to pay a Participation Fee to the CDA in accordance with the schedule in Exhibit A, representing the remaining 50% of the fee charged by MCCD for the Initiative in the Municipalities. Now therefore, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows: TIME OF PERFORMANCE The term of this Agreement and the period during which MCCD will provide services hereunder will commence on January 1, 2021 and will end on December 31, 2021, 1 subject to earlier termination as provided herein. MCCD will perform services necessary to carry out the Initiative as promptly as possible, and with the fullest due diligence. COMPENSATION Subject to reduction as provided below, the CDA will compensate MCCD for its services hereunder an amount equal to One Hundred Twenty-Five Thousand Dollars ($125,000) (Contract Amount). The CDA will pay such amount in two equal installments, the first no earlier than March 1, 2021 and the second no earlier than September 30, 2021, upon receipt of invoices from MCCD. Subject to the limits above, payments will be due within 15 days of receipt of the respective invoices. The portion of the Contract Amount payable from Participation Fees will be payable by the CDA only from and to the extent such Participation Fees are paid by the respective Local Government Entities. In the event a Local Government Entity does not pay to the CDA its Participation Fee in amounts and by the deadline described in Exhibit A, the CDA will notify MCCD, and MCCD will immediately cease the Initiative in that Municipality. Upon such termination, the Contract Amount will be reduced by an amount equal to the Participation Fee which such Local Government Entity did not pay and the amount the CDA would have paid as a matching payment. SCOPE OF SERVICES MCCD will provide technical assistance to existing businesses, residents and those parties interested in starting a business in any of the Municipalities and Small Cities and Townships as further described on Exhibit B and Exhibit C attached hereto, which sets forth the Dakota Open to Business Program Scope of Services. REPORTING MCCD will submit quarterly reports to the CDA in form and substance acceptable to the CDA. Reports will provide information in the aggregate for the County and will include a sub-report for each Municipality and each of the Small Cities and Townships. Reports will include the following information: Number of inquiries Hours of technical assistance provided Hours of dedicated program HRS (city initiatives, program outreach, public events, city meetings, research, client follow-up, data/admin, general inquires) Type of business Annual sales revenue Number of businesses opened Number of business expanded/stabilized 2 Number and amounts of financing packages Demographic information on entrepreneurs Business city or resident city The required reporting schedule is as follows: stth 1 quarter January March, report due April 30 ndst 2 quarter April June, report due July 31 rdst 3 quarter July September, report due October 31 th 4 quarter October December, report due January 31, 2022 In addition to the foregoing, MCCD will provide additional reports as reasonably requested by the CDA or funding partners (Municipalities). PERSONNEL MCCD represents that it has, or will employ or contract for, at its own expense, all personnel required to perform the services necessary to carry out the Initiative. Such personnel will not be employees of, or have any contractual relationship with, the County, the CDA or any of the Local Government Entities. No tenure or any other rights sick leave, vacation pay, severance pay, or any other benefits available to the CDA or any of the Local Government Entities employees shall accrue to MCCD or employees of MCCD performing services under this agreement. The MCCD is an independent contractor. All of the services required to carry out the Initiative will be performed by MCCD and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under State and local law to perform such work. Natalie Mouilso shall be the dedicated MCCD Initiative advisor for Dakota County, CDA, and Local Government Entities for the duration of this contract. If there are immediately. USE OF CDA OFFICE SPACE The CDA will make available a cubicle space for MCCD personnel at the CDA office building for use by MCCD in carrying out the Initiative. MCCD personnel will have access to meeting rooms, wireless internet service, copy machines and printers. MCCD personnel shall comply with all CDA office rules and policies regarding the use of CDA office space, equipment and internet access. If the CDA, in its sole discretion, determines that MCCD Personnel have failed to comply with CDA office rules and policies, MCCD Personnel will be required to vacate the CDA office and the CDA will cease to provide MCCD office space to carry out the Initiative. 3 Even though the CDA office is not open to the public, due to the COVID-19 pandemic, MCCD personnel may utilize office space, as needed, but shall not meet any external parties in the CDA office. INTEREST OF MEMBERS OF THE CDA AND OTHERS No officer, member, or employee of the CDA and no member of its governing body, and no other public official or governing body of any locality in which the Initiative is situated or being carried out, who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of the Initiative, will participate in the decision relating to this Agreement which affects his/her personal interest or the interest of any corporation, partnership, or association in which he/she is, directly or indirectly, interested or has any personal or pecuniary interest, direct or indirect, in this Agreement. ASSIGNABILTY MCCD will not assign any interest in this Agreement, and will not transfer any interest in the same without the prior written approval of the CDA. COMPLIANCE WITH LOCAL LAWS MCCD agrees to comply with all federal laws, statutes and applicable regulations of the State of Minnesota and the ordinances of the Local Government Entities. INSURANCE MCCD agrees at all times during the term of this Agreement, and beyond such term when so required, to have and keep in force the following insurance coverages: Limits 1. Commercial General Liability on an occurrence basis with contractual liability coverage: General Aggregate $2,000,000 ProductsCompleted Operations Aggregate 2,000,000 Personal and Advertising Injury 1,500,000 Each OccurrenceCombined Bodily Injury and Property Damage 1,500,000 2. Workers Compensation and Employers Liability: Workers Compensation Statutory In the event that MCCD should hire employees or subcontract this work, MCCD shall obtain the required insurance. Employers Liability. Bodily injury by: 4 AccidentEach Accident 500,000 DiseasePolicy Limit 500,000 DiseaseEach Employee 500,000 INDEMNIFICATION MCCD agrees to defend, indemnify, and hold harmless the County, the CDA, the Local Government Entities, and each of their respective officials, officers, agents, volunteers and employees from any liability, claims, causes of action, judgments, damages, losses, costs, or expenses, including reasonable attorneys fees, resulting directly or indirectly from any act or omission of MCCD, its subcontractors, anyone directly or indirectly employed by MCCD or any of its subcontractors, and/or anyone for whose acts and/or omissions MCCD may be liable in the performance of the services required by this Agreement, and against all loss by reason of the failure of MCCD to perform any obligation under this Agreement. NOTICES A notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by mail, postage prepaid, return receipt requested, or delivered personally; and (a) In the case of MCCD, is addressed or delivered personally to: Metropolitan Consortium of Community Developers 3137 Chicago Avenue South Minneapolis, MN 55407 (b) In the case of the CDA is addressed or delivered personally to: Lisa Alfson, Director of Community and Economic Development Dakota County Community Development Agency 1228 Town Centre Dr. Eagan, MN 55123 or at such other address with respect to any party as that party may designate in writing and forward to the other as provide in the Section. MODIFICATION This Agreement may not be modified, changed, or amended in any manner whatsoever without the prior written approval of all the parties hereto. NON-DISCRIMINATION In connection with its activities under this Agreement, MCCD will not violate any Federal or State laws against discrimination. 5 DEFAULT AND CANCELLATION Failure of the MCCD to perform any of its obligations under this Agreement to the satisfaction of the CDA will constitute a default hereunder. s default is cured within 15 days following notice by the CDA, the CDA may (i) cancel this Agreement in its entirety by 5 additional MCCD, or (ii) withhold payment from MCCD as long as such default continues. MINNESOTA LAWS GOVERN The Laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. The appropriate venue and jurisdiction for any litigation will be those courts located within the County. Litigation, however, in the federal courts involving the parties will be in the appropriate federal court within the State of Minnesota. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions will not be affected. 6 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY By:_______________________________ Tony Schertler, Executive Director Date: _____________________________ MCCD By: Printed Name: Elena Gaarder Printed Title: Chief Executive Officer Date: 7 Exhibit A 2021 Local Government Entity Participation Fee Schedule Municipality Local Government Total CDA Local Government Entity Fee Share of Entity Participation Fee Fee Eagan Economic Development Eagan Authority $15,000 $7,500 $7,500 City of Burnsville Burnsville $15,000 $7,500 $7,500 City of Lakeville Lakeville $15,000 $7,500 $7,500 Apple Valley Economic Apple Valley Development Authority $13,000 $6,500 $6,500 Inver Grove Heights Economic Inver Grove Development Authority $11,000 $5,500 $5,500 Heights Hastings Economic Hastings Development and $9,000 $4,500 $4,500 Redevelopment Authority Rosemount Port Authority $9,000 $4,500 $4,500 Rosemount Farmington Economic $9,000 $4,500 $4,500 Farmington Development Authority South St. Paul Economic $9,000 $4,500 $4,500 South St. Paul Development Authority West St. Paul Economic $9,000 $4,500 $4,500 West St. Paul Development Authority Mendota City of Mendota Heights $5,000 $2,500 $2,500 Heights Small Cities n/a $6,000 $6,000 $0 and Townships $125,000 $65,500 $59,500 Total 8 Exhibit B Dakota Open To Business Program Scope of Services Open To Business Technical Assistance Services MCCD will provide intensive one-on-one technical assistance to Municipalities and Small Cities and Townships businesses, residents and aspiring entrepreneurs intending to establish, purchase, or improve a business in Municipalities and Small Cities and Townships within Dakota County County. MCCD will dedicate one full time staff person based in the County to provide the Technical Assistance Services . In addition, MCCD will make available the expertise of all MCCD technical and support staff in the delivery of services to Dakota Open to Business Program. Technical assistance includes, but is not limited to, the following: Business plan development Feasibility analysis Marketing Cash flow and other financial projection development Operational analysis City and State licensing and regulatory assistance Loan packaging, and other assistance in obtaining financing Help in obtaining competent legal advice MCCD Dakota OTB Staff will be available to meet clients at the CDA office building, various ss. During the COVID-19 pandemic, MCCD Dakota OTB staff will only meeting clients in-person if the MCCD Dakota OTB staff are comfortable; otherwise, client meetings will be held virtually and/or on the phone. Open To Business Access to Capital Access to capital will be provided to qualifying businesses ng Small Business Loan Program (see Exhibit C Small Business Loan Program Guidelines below). MCCD also provides financing in partnership with other community lenders, banks or Local Government Entities interested in making capital available to residents and/or businesses in their community. 9 EXHIBIT C Small Business Loan Program Guidelines Loan Amounts: Up to $25,000 for start-up businesses Larger financing packages for established businesses Designed to leverage other financing programs as well as private financing provided by the commercial banking community. Eligible Projects: - Business must be complimentary to existing business community. Borrowers must have equity injection as determined by fund management. Allowable Use of Proceeds: Loan proceeds can be used for working capital, inventory, building and equipment and general business operations. Interest Rates: Loan interest rate is dependent on use, term and other factors, not to exceed 10%. Loan Term Length: Loan repayment terms will generally range from three to five years, but may be substantially longer for major asset financing such as commercial property. Fees and Charges: Borrowers are responsible for paying all customary legal and other loan closing costs. 10