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HomeMy WebLinkAbout07-25-17 Correspondence - Montana Department of Commerce to Taylor - BSTFG to Wisetail Project Monitoring Results BULLCK DIRE TORBY-COTE M O N TA N A STEVEG VERONOR DEPARTMENT OF COMMERCE July 25, 2017 • Mayor Carson Taylor City of Bozeman P O Box 1230 Bozeman, MT 59771-1230 RE: Project Monitoring Results — Montana Department of Commerce, Big Sky Economic Development Program Contract# MT-BSTF-1-16-21, Bigart Ecosystems, LLC dba Wisetail Dear Mayor Taylor: On February 23, 2017, Annmarie Robinson and I visited your offices to review the progress of the City of Bozeman's BSTF contract for job creation assistance to Bigart Ecosystems, LLC dba Wisetail. I want to thank Brit Fontenot and Brian LaMeres for their time and effort during the visit. I appreciated and enjoyed the onsite visit to the Bigart Ecosystems, LLC dba Wisetail facility. The purpose of the visit was to evaluate the City of Bozeman's compliance with state requirements of the BSTF program and to assess progress towards completion of the grant. One of three levels of determination (listed below) is assigned to a particular issue if the City of Bozeman or Bigart Ecosystems, LLC dba Wisetail performance is considered less than satisfactory. Concern An issue that does not involve a statutory or regulatory requirement but may involve recommending management or program improvement is considered a concern. A modification of an administrative procedure or policy would be suggested. No formal written response is required from the grantee. Question of Performance If the review raises a question regarding whether a violation of a statutory or regulatory requirement has occurred, the BSTF liaison will first informally discuss the review results with the company to determine if a violation has occurred. If a determination cannot be made before the end of the monitoring visit, the BSTF liaison may conclude that there is a question of performance and request additional information to be provided within 30 days. That period allows the Montana Department of Commerce the time to determine if a violation has occurred. A final determination will be made within 30 days. Findin p When a monitoring review reveals a specific, identifiable violation of a statutory requirement, the BSTF liaison will make a "finding."A written response regarding the company's proposed actions to correct the situation is required within 30 days of the date of the BSTF liaison's monitoring letter. COMMERCE.MT.GOV 301 S.PARK AVE. I PO BOX 2005331 HELENA, MT 59620-0533 1 P:406.841.28701 F:406.841.2871 1 TDD:406.841.2702 Corrective actions should: 1. Prevent a continuance of the violation; 2. Mitigate any adverse effects or consequences of the violation to the extent possible under the circumstances; and 3. Prevent a recurrence of the same or similar violation. The following is a summary of the compliance areas monitored during our visit: Prospera Business Network CRDC FILE AND FINANCIAL MANAGEMENT ✓ A copy of the workers compensation notice has been posted in a visible location for easy review. No concerns were noted. City of Bozeman LOCAL GOVERNMENT FILE MANAGEMENT ✓ All original documents associated with the contract were on file. ✓ Activities completed matched the contract agreement. ✓ No complains relative to the project have been received. ✓ A copy of the worker's compensation notice has been posted in a visible location for easy review. No concerns were noted. City of Bozeman LOCAL GOVERNMENT FINANCIAL MANAGEMENT ✓ Local Government adopted a budget resolution for expenditures. ✓ Budget resolution is on file. ✓ Grant project appears in the local government financial records. ✓ There is a separation of duties. ✓ Public employees handling the project are bonded. ✓ There are no ineligible expenditures charged against the project. ✓ All expenditures had adequate documentation and authorization. No concerns were noted. Bigart Ecosystems, LLC dba Wisetail ASSISTED BUSINESS FILE AND FINANCIAL MANAGEMENT ✓ Hiring records were complete; business is behind on their hiring goals which matches the most recent progress report. ✓ Reviewed payroll records and verified wages match the job creation report. ✓ Equipment purchased is the same as proposed and available for inspection. ✓ Business is active. ✓ Business feels the project has been managed effectively. Due to unforeseen staff turnover, Bigart Ecosystems, LLC dba Wisetail is behind in their net new job creation. They feel that they would be able to make up the job creation within the next 6 months. During the visit, we discussed the contract would be expiring in a couple of months. Bigart Ecosystems, LLC dba Wisetail and the City of Bozeman requested a 1 year contract extension which the Department awarded on March 17, 2017. Please note that all project records must be kept on file for three (3) years after you have received the final BSTF project closeout letter from the Department. Additionally, to assist the Department with program performance reporting, the BSTF award recipient may be required to provide annual project updates for 3 years after the close of the contract. If you need additional information or have questions, you can contact me at (406) 841-2792 or by email at ddavidson2@mt.gov. Sincerely, Debi Davidson Program Specialist Big Sky Economic Development Trust Fund Montana Department of Commerce cc: Cristy Peterson, Bigart Ecosystems, LLC dba Wisetail Paul Reichert, Executive Director, Prospera Business Network Brit Fontenot, City of Bozeman, Director Economic Development and Community Development