ATTACHMENT A
FUNDING AGREEMENT
CARAVANSERAI PROJECT
This FUNDING AGREEMENT (“Agreement”) is made and entered into on October 1, 2026 (“Effective Date”), by and between the City of Palm Springs, a California charter city and municipal corporation (“CITY”), and Caravanserai Project, Inc., a Washington, D.C. non- profit corporation, having its principal place of business at 400 S El Cielo Road, Suite E, Palm Springs, CA 92262 (“RECIPIENT”).
RECITALS
A. CITY and RECIPIENT are mutually in terested in funding of programs and services to the Palm Springs community.
B. RECIPIENT has agreed to provide such services to the Palm Springs community pursuant to the terms of this Agreement.
C. Based on its experience and reputation, RECIPIENT is qualified to provide the services and desires to provide such services.
D. CITY desires to support t he services of RECIPIENT.
NOW, THEREFORE, in cons ideration of t he promises and mutual agreements contained herein, the parties hereto agree as follows:
AGREEMENT
1. SERVICES OF RECIPIENT
1.1 Scope of Services . In compliance with all te rms and conditions of this Agreement, RECIPIENT agrees to provide servic es as generally described in Exhibit “A” attached hereto and incorporated herein by this reference (collectively, “the Services”).
1.2 Compliance with Law . All services rendered under this Agreement shall be provided in accordance with a ll applicable federal, state, and local laws, statutes and ordinances and all lawful orders, rules, and regulations.
1.3 Licenses and Permits . RECIPIENT shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the services required by this Agreement.
1.4 Promotional Literature . In the event RECIPIEN T distributes promotional literature advertising the Services, CITY shall be acknowledged as a sponsor of the Services.
1.5 Volunteer Coordination . To the extent reasonable , if requested by CITY, RECIPIENT agrees to notify its employees, members, or vol unteers of opportunities to volunteer at CITY events.
1.6 No Additional Funding. The Agreement represents the full understanding and agreement of the Parties with re spect to the compensation to RECIPIENT, and any further compensation or sponsorship by CITY to RECIPIENT shall be made, if at all, pursuant to a separate, written agreement executed by both Parties.
2. TIME FOR COMPLETION
The time for completion of the services to be performed by RECIPIENT is an essential condition of this Agreement. RECIPIENT shall prosecute regularly and diligently the work of this Agreement according to the agreed upon sc hedule of performance set forth in Exhibit “A.” RECIPIENT shall not be accountable for delays in the progress of its work caused by any condition beyond its control and without the fault or negligence of RECIPIENT. Delays shall not entitle RECIPIENT to any additional compensatio n regardless of the party responsible for the delay.
3. PAYMENT
3.1 Amount of Payment . CITY agrees to provide RECIPIENT with funding in an amount not to exceed One Million Dollars ($1,000,000) to be used for providing the Services, paid as set forth below.
3.2 Method of Payment .
Based on the City Manager’s determination, payment will be made by CITY of a minimum of four (4) payments annually, distributed at last three (3) months apart. The first such payment shall be made on the following date: October 1, 2026. Subsequent payments shall be made as follows: in quarterly disbur sements of $50,000 in accordance with Exhibit “A” Section IV. Subsequent payments shall not be made unless RECI PIENT provides an invoice and a written progre ss report showing the work per formed in pursuit of the SERVICES. Submission of such progress report shall be provid ed at least quarterly, with the first such report being due within three (3 ) months following the Effective Date, and subsequent reports being due three (3) months thereafter.
3.3 Emergency Payments. Notwithstanding the pay ment schedule provided above, in the event RECIPIENT requires emergency funding, RECIPIENT shall make written request therefor, which request shall be revi ewed and considered by the City Manager, Finance Director and City Attorney. In no event shall any request for an emergency payment cause the maximum amount of payment, set forth in section 3.1 above, to be exceeded.
3.4. Changes . In the event any change or changes to the Services is requested by CITY, the parties hereto shall execute a wri tten amendment to this Agreement setting forth with particularity all terms of such amendment including, but not limited to, any additional funding.
4. PERFORMANCE SCHEDULE
4.1 Time of Essence . Time is of the essence in the performance of this Agreement.
4.2 Schedule of Performance . RECIPIENT shall complete the Services no later than at the end of the Term. Any remaining unused funds after such date shall be returned to the CITY.
4.3 Force Majeure . The time for performance of any obligation to be rendered under this Agreement may be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of a party, if that party notifies the other party within ten (10) days follo wing the commencement of such condition. Unforeseeable causes include, but are not lim ited to, acts of God or of a public enemy, acts of the government, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, and unusually severe weather.
4.4 Term . Unless earlier terminated in accor dance with Section 4.5 of this Agreement, this Agreement shall continue in full force and effect from October 1, 2026, and lasting until September 30, 2031, unless extended by mutual , written agreement of the parties.
4.5 Termination Prior to Expiration of Term . CITY reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days written notice to RECIPIENT. Where te rmination is due to the fault of RECIPIENT and constitutes an immediate danger to health, safety, and general welfare, the period of notice shall be such shorter time as may be determined by the CITY. Upon receipt of the notice of termination, RECIPIENT shall immediately c ease all services except such as may be specifically approved by CITY Representativ e. RECIPIENT shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the CITY Representative after such not ice. RECIPIENT may terminate this agreement, with or without cause, upon thirty (30) days written notice to CITY.
5. COORDINATION OF WORK
5.1 Representative of Recipient . The following principa ls of RECIPIENT are designated as being the principals and representatives of RECIPIENT authorized to act and make all decisions on its behalf with respect to the specified services and work: Franzene Minott, Co-Chief Executive Officer and Bradley Chargualaf, Co-Chief Executive Officer.
5.2 Representative of City . The following principal of CITY is designated as being the principal and representative of CITY (“CITY Representative”) authorized to act and make all decisions on its behalf with respect to this Agreement: City Manager or their designee.
5.3 Prohibition Against S ubcontracting or Assignment. RECIPIENT shall not contract with any other indivi dual or entity to perform any services required under this Agreement without the CITY's express written approval. In addition, neither this Agreement nor any interest may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of CITY.
5.4 Independent Contractor . Neither CITY nor any of its employees shall have any control over the manner, mode, or means by which RECIPIENT, its agents or employees, perform the services required, except as ot herwise specified. RECIPIENT shall perform all
required services as an independent contractor of CITY and shall not be an employee of CITY and shall remain at all times as to CITY a wholly independent contractor with only such obligations as are consistent with that role; however, CITY s hall have the right to review RECIPIENT’s work product, result, and advice. RECIPIENT shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of CITY.
5.5 Designated Oversight and Staff Responsibility . A designated point person from CITY staff shall be assigned to oversee compliance, monitor reports, and audit program expenses as needed. This individual will act as the liaison between CITY and RECIPIENT and ensure adherence to all contractual obligations.
5.6 Material Changes Affecting RECIPIENT . In the event of material internal changes with RECIPIENT’s organization, RECIPIENT shall notify the CITY Representative, in writing, within ten ( 10) calendar days of such change. For purposes of this Section, a material change includes any change in RECIPI ENT’s board of directors, executive management, managing or member partners (including thei r ownership shares), RECIPIENT’s policies or procedures, or any written allegation, investigation into, or finding of any violation of federal, state, or local law or regul ation. In addition, any other event or occurrence that materially a ffects RECIPIENT’s operations shall be reported to the CITY Representative, in writing, within ten (10) calendar days.
6. INSURANCE
RECIPIENT shall procure and maintain, at its sole cost and expense, policies of insurance as required by the City Attorney, as specified in Exhibit “B.”
7. INDEMNIFICATION .
7.1 Indemnification. To the fullest extent permitted by law, RECIPIENT shall defend (at RECIPIENT’s sole cost and expens e), indemnify, protect, and hold harmless CITY, its elected officials, officers, empl oyees, agents, and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgment s, arbitration awards, se ttlements, damages, demands, orders, penalties, and expenses including l egal costs and attorney fees (collectively “Claims”), including but not limited to Claims ar ising from injuries to or death of persons (RECIPIENT’s employees included), for damage to property, including property owned by CITY, from any violation of any federal, state, or local law or ordinance, and from errors and omissions committed by RECIPI ENT, its officers, employees , representatives, and agents, that arise out of or relate to RECIPIENT’s performance under this Agreement. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the CITY, its elected officials, office rs, employees, agents, and volunteers. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit RECIPIENT’s indemnification obligation or other li ability under this Agreement. RECIPIENT’s indemnification obligation shall survive the expiration or earlier termination of this Agreement until all actions against the Indemnified Parties for such matters indemnified are fully and finally barred by the applicable statute of limitations or, if an action is timely filed, until such action is final. This provision is intended for the benefit of third party Indemnified Parties not otherwise a party to this Agreement.
8. RECORDS AND REPORTS
8.1 Reports . RECIPIENT shall prepare and submit to the CITY Representative a report concerning the performance of the Services required by this Agreement within 30 days of completion of the Services or upon expiration of this Agreement, wh ichever occurs first.
The report shall include all promotional mate rials developed for the Programming and additional media and related items pertaining to the programming.
8.2 Records . RECIPIENT shall keep such books and records as shall be necessary to properly perform the services required by this Agreement and enable the CITY Representative to evaluate the performance of such services. The CITY Representative shall have full and free access to such books and re cords at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.
8.3 Cost Records . RECIPIENT shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred while performing under this Agreement. RECIPIENT shall make such materials available at its offices at all reasonable ti mes during the term of this Ag reement and for three (3) years from the date of final payment for inspection by CITY and copies shall be promptly furnished to CITY upon request.
8.4 Financial Records . RECIPIENT shall provide to CITY an Annual Financial Report, including a balance sheet, income statement, and a description of the RECIPIENT’s operations prepared in compliance with generally accepted auditing principles (GAAP) and certified by a licensed Certified Public Accountant no later than eight (8) months following the close of RECIPIENT’s fiscal y ear end on September 30, of eac h year, in addition to the Internal Revenue Form 990 (to be filed within the same time) concerning the performance of the Services required by this Agreemen t, and again within thirty (30) days following completion of the Services or upon expiration of this Agreement, whichever occurs first.
8.5 Progress Reports . RECIPIENT must submit regular progress reports detailing the status of the services and any use of funds.
8.6 Invoices . All reimbursement requests mu st be accompanied by detailed invoices and corresponding progress reports.
8.7 Annual Audit . In addition to the information required above, if the amount set forth in Section 3.1 is over Seventy Fi ve Thousand Dollars ($75,000), RECIPIENT shall provide an independent audit at least annually during the term of this Agreement.
RECIPIENT may request, and the Finance Directo r shall have the authority to approve or disapprove, that RECIPIENT meet the above-referenced audit requirement by conducting and providing to CITY an audit that is focused on RECIPIENT’s internal controls.
9. ENFORCEMENT OF AGREEMENT
9.1 California Law . This Agreement shall be construed and interpreted both as to validity and to performance of t he parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation
to this Agreement shall be inst ituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and RECIPIENT covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.
9.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties.
The terms of this Agreement are contractual and the result of nego tiation between the Parties. Accordingly, any rule of constructi on of contracts (includi ng, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be employed in the interpretati on of this Agreement. The caption headings of the various sections and paragraphs of this Agreemen t are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.
9.3 Waiver . No delay or omission in the exercise of any right or remedy of a non- defaulting party on any default shall impair such right or remedy or be construed as a waiver.
No consent or approval of CI TY shall be deemed to waive or render unnecessary CITY’s consent to or approval of any subsequent act of RECIPIENT. Any waiver by either party of any default must be in writing. No such wa iver shall be a waiver of any other default concerning the same or any other provision of this Agreement.
9.4 Rights and Remedies are Cumulative . Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative. The exercise by eit her party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.
9.5 Legal Action . In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, co rrect, or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, a declaratory judgment, or any other remedy consistent with the purposes of this Agreement.
11. CITY OFFICERS AND EMPL OYEES; NON-DISCRIMINATION
11.1 Non-Liability of City Officers and Employees . No officer or employee of CITY shall be personally liable to the RECIPIENT, or any successor-in-interest, in the event of any default or breach by CITY or fo r any amount which may become due to the RECIPIENT or its successor, or for breach of any obligation of the terms of this Agreement.
11.2 Conflict of Interest. RECIPIENT acknowledges that no officer or employee of the CITY has or shall have any direct or indirect financial interest in this Agreement, nor shall RECIPIENT enter into any agreem ent of any kind with any such officer or employee during the term of this Agreement and for one year thereafter. RECIPIENT warrants that RECIPIENT has not paid or given, and will not pay or give, any third party any money or other consideration in exchange for obtaining this Agreement.
11.3 Covenant Against Discrimination . In connection with its performance under this Agreement, RECIPIENT shall not discri minate against any employee or applicant for
employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”). RECIPIENT shall ensure that applicants are employed, and that employees are treat ed during their employment, without regard to any prohibited basis. As a condition precedent to CITY’s lawful capacity to enter this Agreement, and in executing this Agreement, RECIPIENT certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any RECIPIENT activity , including but not limit ed to the following:
employment, upgrading, demotion or transfer; recruitment or recr uitment advertising; layoff or termination; rates of pay or other forms of compensation; and se lection for training, including apprenticeship; and further, that RECIPIENT is in full compliance with the provisions of Palm Springs Municipal Code Section 7.05.02, including without limitation the provision of benefits, relating to non-discrimination in city contracting.
12. MISCELLANEOUS PROVISIONS
12.1 Notice . Any notice, demand, request, c onsent, approval, or communication that either party desires, or is required to give to the other party or any other person shall be in writing and either served personally or sent by pre-paid, first-class mail to the address set forth below. Notice shall be deemed communicated seventy-two (72) hours from the time of mailing if mailed as provided in this Section. Either party may change its address by notifying the other party of the change of address in writing.
To City: CITY OF PALM SPRINGS
CITY MANAGER/CITY CLERK
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
(760) 322-8362
To RECIPIENT: CARAVANSERAI PROJECT
Attn: Franzene Minott and Bradley Chargualaf,
Co-Chief Executive Officers
[email protected]
[email protected]
2150 E Tahquitz Canyon Way #3
Palm Springs, CA 92263
(760) 537-6442
12.2 Integrated Agreement . This Agreement contains all of the agreements of the parties and supersedes all other written agreements.
12.3 Amendment . No amendments or other modifica tions of this Agreement shall be binding unless through written agreement by all Parties.
12.4 Severability . Whenever possible, each provisio n of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. In the event
that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs , or sections of th is Agreement, which shall be interpreted to carry out the intent of the parties.
12.5 Successors in Interest. This Agreement shall be bi nding upon and inure to the benefit of the Parties’ successors and assignees.
12.6 Third Party Beneficiary. Except as may be expressly provided for in this Agreement, nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third-party beneficiary or otherwise, upon any entity or person not a party to this Agreement.
12.7 Recitals. The above-referenced Recitals ar e hereby incorporated into the Agreement as though fully set forth in this Agreement and each Pa rty acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same.
12.8 Authority . The persons executing this Ag reement on behalf of the Parties warrant that they are duly authorized to execute this Agreement on behalf of Parties and that by so executing this Agreement the Parties are form ally bound to the provisions of this Agreement.
IN WITNESS WHEREOF, the Parties have exec uted this Agreement as of the dates stated below.
“CITY”
City of Palm Springs
Date:__________________________ By: ____________ ___________________ Scott C. Stiles
City Manager
APPROVED AS TO FORM: ATTEST
By: ___________________________ By: _______________________________ Jeffrey S. Ballinger Brenda Pree
City Attorney City Clerk
“RECIPIENT”
CARAVANSARAI PROJECT, INC.
Date: __________________________ By : ______________________________ Franzene Minott
______________________________
Co-Chief Executive Officer
Date: __________________________ ______________________________ Bradley Chargualaf
__________________ ____________
Co-Chief Executive Officer
EXHIBIT “A”
SCOPE OF SERVICES/WORK
BIZUP: PALM SPRINGS
Palm Springs Business Training and Access to Capital Program Overview
I. Program Summary
In 2024, the City of Palm Springs co mmitted $1,000,000 over five years to economic development as part of its restorative justice commitment following the Section 14 settlement, naming Caravanserai - Alliance for Entrepreneurs as the delivery partner.
This overview describes how RECIPIENT will deliver t hat commitment: a five-year business training and access to capital pr ogram focused on Section 14 survivors and descendants and the broader Palm Springs small business community.
The program builds directly on two comp leted program years funded by the City in 2024 and 2025. Those two years serv ed 70 entrepreneurs, funded 35 businesses, created 21 new jobs, and generated $1.18 millio n in revenue growth, contracts, and investments captured by participants. This 5-year initiative applies the same model at full scale.
Each program year, RECIPIENT sha ll train 40-50 entrepreneurs across two cohorts, award up to 40 micro-grants of $3,750, and provide unlimited one-on-one business consulting through Caravan SBDC, RECIPIENT's small business development center within the larger Orange County Inland Empire SB DC Network. Through the center and its network, entrepreneurs have access to more than 150 business consultants across finance, marketing, sales, operations, and compliance, at no cost to them or to the City. Over five years, the program will train 200-250 entrepreneurs and deploy $750,000 in direct micro-grant capital into Palm Springs businesses.
II. Program Design
The program runs two cohorts per year of 20-25 participants each. Every cohort receives ten business group workshops and ten one-on-one coaching sessions, delivered in a hybrid format (in-person and online) and fu lly bilingual in English and Spanish. The curriculum covers busine ss vision and planning, financial management, customer discovery and competitive analysis, marketing and sales, banking and financial systems, and technology and operations, tailored to the needs of each cohort.
Selection is competitive, based on the strength of each applicant's business.
Priority outreach will be given to Section 14 survivors and descendants, and the program remains open to all Palm Springs entrepreneurs.
After graduation, participants keep access to ongoing consulting through Caravan SBDC at no cost, for as many sessions as appropriate.
III. Micro-Grant Eligibility
Graduates who complete the training pr ogram, the required coaching sessions through Caravan SBDC, and a business plan qua lify for a $3,750 micr o-grant. Up to 40 grants are awarded each year, 200 over the life of the pr ogram. Before funds are disbursed, each recipient must provide:
• Government-issued photo identification
• Business formation and registration record s (fictitious business name statement, articles of organization or incorporation, EIN confirmation, as applicable) • An active City of Palm Springs business license, along with any other licenses or permits the business requires to be in compliance
• Business bank account verification (voi ded check, bank verification letter, or recent statement)
• Evidence of active business operations (s ales records, contracts, leases, payroll records, or comparable documentation)
• Most recent business tax return, where applicable
Grant funds may be used for business lic enses and incorporation, equipment, marketing, rent, inventory, and payroll (with restrictions). Funds may not be used for taxes, bonuses, severance, personal expenses, legal settlements, expenses reimbursed by insurance, or investment purposes, including but not limited to cryptocurrency, stocks, or other speculative financial instruments. Recipients submit invoices and progress reports on the use of funds.
IV. Outreach Plan
RECIPIENT shall promote t he program through email newsletters, text message campaigns, in-person info sessions, social media, and its established relationships across the regional small
business community, including community organizations, financial institutions, and chambers of commerce. All outreach materials are bilingual in English and Spanish.
Outreach for each cohort follows a phased timeline that puts the Section 14 community first. The first recruitment period opens with a 90-day priority outreach window spanning the full first program quarter, allowi ng multiple rounds of information sessions and sustained relationship-building with Secti on 14 representatives before any citywide promotion begins. Each recruitment period after the first opens with a standard 30-day priority window. During each priority window, all outreach activity is dedicated to Section 14 survivors and descendants. Applications remain open to all Palm Springs entrepreneurs throughout, and selection remains competitive. After each priority window closes, outreach expands citywide. This cycl e repeats before each cohort, twice per program year, consistent with the quarterly implementation timeline below.
Outreach Phase (each
recruitment period)
Activities
Section 14 priority
outreach: first 90 days
of the first recruitment
period, first 30 days of
each recruitment period
thereafter
All outreach (newsletters, text campaigns, etc.) is dedicated to Section 14 survivors and descendants. Community information sessions at trusted neighborhood locations, including Ajalon Missionary Baptist Church and the James O. Jessie Desert Highland Unity Center, with Section 14 representatives invited to co-host. Application walkthrough sessions and technical support webinars for Section 14 applicants. In-person application and technical assistance at the Unity Center and the
RECIPIENT office.
General recruitment:
following each priority
window
Outreach expands citywide through newsletters, text campaigns, social media, and partner organizations. Continued application walkthroughs, technical support webinars, and in-person assistance at accessible community locations and the
RECIPIENT
office through the close of applications.
Ongoing Continued engagement with Section 14 representatives between cohorts to share program updates, report outcomes, and gather community feedback. Year-round outreach partnerships with community organizations and financial institutions.
RECIPIENT shall engage Sect ion 14 representatives th roughout the program, inviting them to raise awareness among survivors and descendants, co-host information sessions, and help keep the community informed between recruitment cycles.
RECIPIENT staff shall walk applicant s through the application and required documentation step by step, in person and online, in English and Spanish.
V. Implementation Timeline
The timeline is organized around progr am quarters with Quarter 1 beginning when the first quarterly disbursement is receiv ed from the City. In Year 1, the full first quarter is dedicated to Section 14 priority outreach before citywide recruitment begins.
Years 2-5 follow the same four-quarter cycle each year, aligned to the City's disbursement schedule.
Program Quarter Milestones
Quarter 1 (begins
upon first City
disbursement)
Program launch. Applications open. The full quarter (90 days) is dedicated to Section 14 priority outreach, beginning with Section 14 representatives and community partners.
Quarter 2 Citywide general recruitment opens and closes. Cohort 1 selected and training begins.
Quarter 3 Cohort 1 completes training and micro-grants are awarded to eligible graduates (up to 20). Cohort 2 recruitment begins with a 30-day Section 14 priority outreach window.
Quarter 4 Cohort 2 trains and completes. Micro-grants awarded (up to 20).
Cohort 1 grant reporting and follow-up consulting. Year 1 evaluation and annual report to the City.
Years 2-5 From Year 2 onward, each program year follows the standard four- quarter cycle: two cohorts, each recruited with a 30-day Section 14 priority outreach window, up to 40 micro-grants, and annual reporting. Outcome tracking continues for 12 months after each cohort.
VI. Budget
The City's total investment is $1,000,000 ov er five years, or $200,000 per year, received in quarterly disbursements of $50,000 consistent with the City's disbursement framework. Each year, 75 per cent of funds ( $150,000) go directly to entrepreneurs as micro-grants and 25 percent ($50,000) covers program delivery. Any micro-grant funds not awarded in a given program year roll forward into the following year's micro-grant pool; they are never redirected to program operations.
Category Annual 5-Year Total
Micro-grants to entrepreneurs (75%) $150 ,000 $750,000
Program delivery (25%) $50,000 $250,000
Total City investment $200,000 $1,000,000
Caravan SBDC consulting (no cost to the City) $40,000 $200,000 Total program value $240,000 $1,200,000
Program Delivery Line Item (Annual) Amount
Program administration and personnel: operations, fiscal management, participant coordination, micro-grant distribution, and reporting to the City $30,000
Consultants, trainers, and mentors $6,800
Outreach and marketing $2,750
Program supplies and participant support $2,250
55575.18100\42987944.1
16 Evaluation, monitoring, and compliance $3,650
Administration and indirect costs (10%) $4,550
Total program delivery $50,000
Caravan SBDC added val ue: one-on-one consulting is provided through Caravan SBDC at no cost to participants or the City, drawing on the more than 150 business consultants available through t he center and the Or ange County Inland Empire SBDC Network. Participants may ta ke as many sessions as appropriate, during the program and after it ends. The estimated value of this service is $40,000 per year, bringing the total program value to $240,000 per year and $1,200,000 over five years.
VII. Anticipated Outcomes and Reporting
Over five years, the program will train 200-250 Pa lm Springs entrepreneurs across ten cohorts and deploy $750,000 in micr o-grant capital through 200 grants of $3,750. RECIPIENT tracks outcomes from the application stage through 12 months after each cohort, measuring businesses funded, businesses started, jobs created and retained, revenue growth, and additional capital secured along with other metrics.
RECIPIENT shall provide q uarterly financial and program reporting with an annual impact report, and shall align the reporting schedule and format with the City's requirements. RECIPIENT is independently audited each year and holds a GuideStar Platinum transparency rating, placing it in the top 1 percent of nonprofits nationally.
55575.18100\42987944.1
17 EXHIBIT “B”
INSURANCE PROVISIONS
Including
Verification of Coverage,
Sufficiency of Insurers,
Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
55575.18100\42987944.1
18 INSURANCE
1. Procurement and Maintenance of Insurance. RECIPIENT shall procure and maintain public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from RECIPIENT’s performance under this Agreement. RECIPIEN T shall procure and maintain all insurance at its sole cost and expense, in a form and content satisfactory to the City, and submit concurrently with its execution of this Agreement. RECIPIENT shall also carry workers’ compensation insurance in accordance with California work ers’ compensation laws. Such insurance shall be kept in full force and effect during the term of this Agreement, including any extensions. Such insurance shall not be c ancelable without thirty (30) days advance written notice to City of any proposed cancellati on. Certificates of insurance evidencing the foregoing and designating the Cit y, its elected officials, officers, employees, agents, and volunteers as additional named insureds by original endorsement shall be delivered to and approved by City prior to commencement of services. The procuring of such insurance and the delivery of policies, cert ificates, and endorsements evidencing the same shall not be construed as a limitation of RECIPIENT’s obligation to indemnify City, its elected officials, officers, agents, employees, and volunteers.
2. Minimum Scope of Insurance . The minimum amount of insurance required under this Agreement shall be as follows:
(i) Comprehensive general liability and personal injury with limits of at least one million dollars ($1, 000,000.00) combined single limit coverage per occurrence and two million dollars ($2,000,000) general aggregate; (ii) Automobile liability insurance wit h limits of at least one million dollars ($1,000,000.00) per occurrence;
(iii) Professional liability (errors and omissions) insur ance with limits of at least one million dollars ($1,000,000.00) per occurr ence and two million dollars ($2,000,000) annual aggregate is:
_________ required
_________ is not required;
(iv) Workers’ Compensation insura nce in the stat utory amount as required by the State of California and Employer’s Liability Insurance with limits of at least one million dollars $1 million per occurrence. If RECIPIENT has no employees, RECIPIENT shall complete t he City’s Request for Waiver of Workers’ Compensation Insurance Requirement form.
3. Primary Insurance. For any claims related to this Agreement, RECIPIENT’s insurance cove rage shall be primary with re spect to the City and its respective elected officials, officers, employees, agents, and volunteers. Any insurance or self-insurance maintained by City and it s respective elected officials, officers, employees, agents, and volunteers shall be in excess of RECIPIENT’s insurance and shall not contribute with it. For Workers’ Compensation and Employer’s Liability 55575.18100\42987944.1
19 Insurance only, the insurer shall waive all rights of subrogation an d contribution it may have against City, its elected officials, officers, employees, agents, and volunteers.
4. Errors and Omissions Coverage . If Errors & Omissions Insurance is required, and if RECIPIENT provides claims made professional lia bility insurance, RECIPIENT shall also agree in writing either (1) to purchase tail insurance in the amount required by this Agreement to cover claims made within three years of the completion of RECIPIENT’s services under this Agreement, or (2) to maintain professional liability insurance coverage with the same carrier in the amount required by this Agreement for at least three years after completion of RE CIPIENT’s services under this Agreement.
RECIPIENT shall also be required to provi de evidence to City of the purchase of the required tail insurance or continuation of the professional liability policy.
5. Sufficiency of Insurers . Insurance required in this Agreement shall be provided by authorized insurers in good standing wi th the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best’s Key Rating of B++, Class VII, or better, unless otherwise acceptable to the City.
6. Verification of Coverage . RECIPIENT shall furnish City with both certificates of insurance and endorsements, including additi onal insured endorsements, effecting all of the coverages required by this Agreement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the right to require RECIPIENT’s insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements are not required for Errors and Omissions and Workers’ Compensation policies.
Verification of Insurance coverage may be provided by: (1) an approved General and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Insurance Co verage with an approved Additional Insured Endorsement with the following endorsements stated on the certificate:
1. "The City of Palm Springs, its official s, employees, and agents are named as an additional insured…” ("as respects City of Palm Springs Contract No.___" or "for any and all work performed with the City" may be included in this statement).
2. " This insurance is primary and non-contributory over any insurance or self- insurance the City may have ..." ("as respects City of Palm Springs Contract No.___ " or "for any and all work performed with the City" may be included in this statement).
3. " Should any of the above-described po licies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the Certificate Holder named." Language such as, “endeavor to” mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out.
55575.18100\42987944.1
20 4. Both the Workers’ Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, it s elected officials, officers, employees, agents, and volunteers.
In addition to the endorsements listed above, th e City of Palm Spri ngs shall be named the certificate holder on the policies.
All certificates of insurance and endorseme nts are to be received and approved by the City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter. Failure to obtain the required documents prior to the commencement of work shall not waive the RECIPIENT’s obligation to provide them.
7. Deductibles and Self-Insured Retentions . Any deductibles or self- insured retentions must be declared to and approved by the City prior to commencing any work or services under this Agreement. At t he option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, its elected officials, officers, employees, agents, and volunteers; or (2) RECIPIENT shall procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expe nses. Certificates of Insur ance must include evidence of the amount of any deductibl e or self-insured retention under the policy. RECIPIENT guarantees payment of all deductibles and self-insured retentions.
8. Severability of Interests (Separation of Insureds) . This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer’s liability.