Agenda Item No. 6
YUCAIPA CITY COUNCIL
AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: V*-"R'aymond A. Casey, City Manager
FOR: City Council Meeting of April 25, 2022
SUBJECT: Renewal of the Memorandum of Understanding (MOU) with University Enterprises Corporation (UEC) at California State University, San Bernardino (CSUSB) for itself and on behalf of the Inland Empire Small Business Development Center (IEBSDC) for Small Business Support, Resources, and Consulting Services RECOMMENDATION:
That the City Council:
1. Approve and authorize the City Manager to renew a Memorandum of Understanding (MOU) University Enterprises Corporation (UEC) at California State University, San Bernardino (CSUSB) for itself and on behalf of the Inland Empire Small Business Development Center (IEBSDC) for Small Business Support, Resources, and Consulting Services; and
2. Direct staff to include the amount of $17,000 in the draft FY 2022/2023 General Fund, Economic Development, Professional Services budget for this program.
BACKGROUND:
On November 9, 2020, the City Council approved a Memorandum of Understanding (MOU) with the University Enterprises Corporation (UEC) at California State University, San Bernardino (CSUSB) for itself and on behalf of the Inland Empire Small Business Development Center (SBDC) to provide small-business consulting and support services for the City's Incubator Program. Specifically, the SBDC assisted Incubator program participants with completing program obligations, including but not limited to, developing a business plan, setting strategic goals, and creating budget projections. In addition, over the past two years, the SBDC has held workshops at the Incubator for participants and the community at large, as well as served on the City's Incubator Committee to provide status updates on each of the program participants.
The current MOU with the SBDC ended on November 30, 2021. However, there was a continuation of services, and in an effort to align a future agreement with the City's fiscal year, the SBDC agreed to continue to provide services past November 30, 2021. The continuation of services is made possible by the SBDC utilizing grant funding to cover the period from November 30, 2021 to June 30, 2022.
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City Council Meeting of April 25, 2022
Renewal of the Memorandum of Understanding (MOU) with University Enterprises Corporation (UEC) at California State University, San Bernardino (CSUSB) for itself and on behalf of the Inland Empire Small Business Development Center (IEBSDC) for Small Business Support, Resources, and Consulting Services
DISCUSSION:
The proposed MOU includes the saine provisions as the previous MOU, including the assistance the SBDC will provide to Incubator participants and the community, as well as the cost of services to the City.
For the Incubator participants, the SBDC will assist with completing the following contractual obligations as part of the Incubator program:
A. Developing a business plan within three months of entering the YBIC Program and keeping it current; and
B. Setting 3-6 strategic goals each year, and review and rate YBIC program performance relative to goals each year; and
C. Creating annual budget projections by month; tracking and reporting budget vs. actuals monthly; assistance with Profit & Loss statements with balance sheet preparation, reviewing at least once annually.
In addition, the IESBDC will:
A. Conduct at least 9 workshops per year that increase business skills, and track that participant attend at least 4 of the 9 workshops (YBIC program obligation); and B. Conduct monthly meetings with participants to discuss goals, challenges, and accomplishments; and
C. Serve on the Incubator Committee, assist with business overviews and provide a status report annually to the Committee and the City Council; and D. Maintain a minimum of a one -day a week schedule for IESBDC staff to be on -site, plus unlimited virtual access to the IESBDC team.
As mentioned, in addition to the assistance provided to the Incubator participants, the SBDC will also provide workshops and consulting services to the business community.
Staff recommends a renewed MOU with the SBDC to continue business consulting services at the Incubator and for the community at large.
FISCAL IMPACT
The total cost of the IESBDC's services for business support and consulting services at the YBIC for twelve calendar months, beginning July 1, 2022, is $34,000. However, as part of their efforts -129-
City Council Meeting of April 25, 2022
Renewal of the Memorandum of Understanding (MOU) with University Enterprises Corporation (UEC) at California State University, San Bernardino (CSUSB) for itself and on behalf of the Inland Empire Small Business Development Center (IEBSDC) for Small Business Support, Resources, and Consulting Services
to support small business technical assistance and training programs and made possible with Federal and State funding sources, the IESBDC will provide matching funding for one-half the cost of the service ($17,000). The City's share of the cost of the service is $17,000.
Staff recommends that funding in the amount of $17,000 for the MOU with the SBDC to provide small business support, resources, and consulting services be included in the draft FY 2022/2023 General Fund, Economic Development Budget, Professional Services budget.
Attachments: Memorandum of Understanding
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AGREEMENT BETWEEN
THE CITY OF YUCAIPA
UNIVERSITY ENTERPRISES CORPORATION AT CSUSB (UEC) for itself and on behalf of INLAND EMPIRE SMALL BUSINESS DEVELOPMENT CENTER (IESBDC) 2022/2023
SERVICES
The IESBDC will provide business and business -related technical assistance to residents and businesses within the City of Yucaipa's Business Incubator Center at 34272 Yucaipa Blvd, Yucaipa, CA 92399 for a one-year period from July 1, 2022 through June 30 2023.
The IESBDC's team of consultants will offer hands-on technical assistance in the following areas: business planning, loan proposals, environmental assessment, finance, bookkeeping, taxes and licenses, marketing, management, human resources, and government procurement procedures.
This assistance will be provided at minimum one -day a week at a site within the Incubator or an alternative site arranged by the City of Yucaipa. In addition to on -site access there will be unlimited off -site virtual access to the IESBDC's team of consultants by both residents and businesses participating in the City of Yucaipa's Business Incubator program.
Specific Services provided to those within the Incubator:
• Assist participants with developing a business plan within three months of entering the Program and with keeping it current.
• Conduct monthly meetings with participants to discuss goals, challenges, and accomplishments.
• Assist participants with setting 3-6 strategic goals each year, and review and rate performance relative to goals each year
• Assist participants in the creation of annual budget projections by month, and track and report budget vs. actuals monthly. Includes assistance with Profit & Loss statement with balance sheet preparation and review at least once annually. • Serve on the Incubator Committee and assist with business overviews and status report annually to the Board of Directors.
• Organize and conduct at least 9 workshops per year that increase business skills, and track that participants attend at least 4 of the 9 workshops
SEMINARS AND WORKSHOPS
The IESBDC will offer 9 seminars at the Incubator during the term of this agreement on business -related topics. The topics for these seminars are to be determined in consultation with the City of Yucaipa.
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MARKETING
IESBDC will be responsible for marketing the consulting services, seminars, and workshops to the business community by means of fliers, press releases and presentations to business groups (such as service clubs and industrial councils). The IESBDC will identify the City of Yucaipa as a co-sponsor of the program through literature and community presentations. The City of Yucaipa will actively assist IESBDC in the marketing and promotion of the program.
ACTIVITY REPORTS
IESBDC will provide quarterly reports of activities, including:
1. Number of consultations
2. Incubator business progress
3. Type of assistance provided
4. Types of businesses (i.e. start-up, home occupation, retail, service or manufacturing).
The quarterly reports shall be submitted to Ray Casey, within 30 days after the end of each quarter.
COMPENSATION
The City of Yucaipa will provide IESBDC with $17,000 in cash match to support a $34,000 small business technical assistance and training program for the FY July 1, 2022, to June 30, 2023.
Of that amount, seventeen thousand dollars ($17,000) will be from City of Yucaipa and seventeen thousand dollars ($17,000) will come from Federal and State funding sources identified and secured by IESBDC.
The City of Yucaipa will pay the IESBDC in two payments for the cash match amount Invoice July 29th 2022 - $8500 and January 31st 2023 - $8500 $17,000 IESBDC sponsorship to be broken down as such:
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Yucaipa Business Center Budqet
DESCRIPTION
IE SBDC
Citv
ofYucaipa
Total
BUDGETNARRA11VE I
A.
Personnel (Salaries)
Project Director
S 1,000
S
1,000
S 2.000
Program Set-up, Coordination, and Review (54y)
Program Specialist
S 9.850
$
9.850
S 19,700
390 hours - Deliver Instruction and Training (64°M) 1
Total Salaries and Wages
$ 10.850
s 10.860
S 21,700
B.
Fringe Benefits
S -
Project Director
S 440
S
440
S 880
44%fringe rate
Program S ecia[st
S 4,334
S
4,334
S 8.668
------ Total Fringe .Benefits _ _
S 47 44
$ 4.774
S 9548
E.
Equipment and Supplies
S -
I
Traininq Materials
S 496
S
496
S 992
Workbooks, supplemental materials, and training supplies Total Su lies
$ 496
$ 496
$ 992
G.
Consultants/Contractual & Services
Instructo,.Facilitaior
S 880.00
S
880
S 1.760
Specialty training (SEO, Sexual Harassement, Shopify, Amazon ) Total Consultants/Contracts & Services
I S 880 $ 880
$ 1 760
1. Total Direct Charges
$ 17.000
$
17,000
S 34.000
1 Total Budget
$ 17,000
$
17,000
S 34.000
In addition, City of Yucaipa will receive:
• City logo and information on all training materials in the City of Yucaipa • City logo on Sponsors page of IESBDC webinars
IESBDC participation in City's outreach to local small businesses.
HOLD HARMLESS AND INDEMNIFICATION.
UEC shall hold harmless, defend and indemnify City of Yucaipa, its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorney fees which arise out of the performance of the work described herein, caused in whole or in part by any negligent act or omission of UEC, anyone directly or indirectly employed by UEC or anyone for whose acts UEC may be liable, except where such claims, damages, losses and expenses, including attorney's fees resulting from or caused by the active negligence, sole negligence, or willful misconduct of City of Yucaipa, its officers, officials, employees and volunteers.
INSURANCE
See Exhibit A
ASSIGNMENT
No assignment of this Agreement or of any part or obligation of performance hereunder shall be made, either whole or in part, by IESBDC without the prior written consent of City of Yucaipa.
NDEPENDENT CONTRACTOR
The parties hereto agree that UEC and its employees, officers, and agents are independent contractors under this Agreement and shall not be construed for any purpose to be employees of the City of Yucaipa.
ENTIRE AGREEMENT
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It is expressly agreed that this Agreement embodies the entire Agreement of the parties in relation to the subject matter hereof, and that no other Agreement or understanding, verbal or otherwise, relative to this subject matter, exists between the parties at the time of execution.
AGREED
City of Yucaipa
For University Enterprises Corporation at CSUSB
Diane Trujillo, MPA
Director — Sponsored Programs Administration
Academic Research/AR-111 E
Date
Date
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Insurance Requirements for Professional Services
Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non -owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers' Compensation insurance as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
(Not required if consultant provides written verification it has no employees)
4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant's profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase "extended reporting" coverage for a minimum of five (5) years after completion of contract work. A copy of the claims reporting requirements must be submitted to the Entity for review.
If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the Entity requires and shall be entitled to the broader coverage and/or higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Entity.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
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The Entity, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant's insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).
Primary Coverage
For any claims related to this contract, the Consultant's insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the Consultant's insurance and shall not contribute with it.
Notice of Cancellation
Consultant shall provide immediate written notice if (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; (3) or the deductible or self -insured retention is increased. In the event of any cancellation or reduction in coverage or limits of any insurance, Consultant shall forthwith obtain and submit proof of substitute insurance.
Waiver of Subrogation
Consultant hereby grants to Entity a waiver of any right to subrogation which any insurer of said Consultant may acquire against the Entity by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Entity has received a waiver of subrogation endorsement from the insurer. However, the Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of the Entity for all work performed by the Contractor, its employees, agents and subcontractors.
Self -insured Retentions
Self -insured retentions must be declared to and approved by the Entity. The Entity may require the Consultant to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or Entity.
Acceptability of Insurers
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Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best's rating of no less than ANII, unless otherwise acceptable to the Entity.
Verification of Coverage
Consultant shall furnish the Entity with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to Entity before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant's obligation to provide them. The Entity reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that Entity is an additional insured on insurance required from subcontractors.
Special Risks or Circumstances
Entity reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. -137-