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HomeMy WebLinkAbout10-21-19 City Commission Packet Materials - C3. Amendment to the MDC Contract for the MeatEater, Inc. BSTF Grant Award Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Director of Economic Development SUBJECT: Authorize Mayor Andrus to sign Montana Department of Commerce Contract Amendment # BSTF-1-19-12A for the MeatEater, Inc, BSTF Grant Award MEETING DATE: October 21, 2019 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize Mayor Andrus to sign Montana Department of Commerce Contract Amendment # BSTF-1-19-12A for the MeatEater, Inc, BSTF Grant Award BACKGROUND: On September 16, 2019 the Bozeman City Commission voted to authorize Mayor Andrus to sign Montana Department of Commerce, Big Sky Economic Development Trust Fund Program Grant Amendments to the Business Assistance Agreement and Management Plan to the MeatEater, Inc, Contract # MT-BSTF-1-19-12. (Attachment 1) At the time of this approval, no reference was made to the amendments required in the primary Montana Department of Commerce contract with the City. This staff oversight requires that the Commission also authorize Mayor Andrus to sign the amended Montana Department of Commerce Contract # BSTF-1-19-12A. (Attachment 2) Contract amendments include; 1) increasing the total award amount from $50,000 to $100,000, 2) increasing the number of eligible net new jobs from 10 to 20 and adding one additional year (January 16, 2021) to the contract to complete the hiring. 11 MeatEater, Inc has grown at a faster pace than originally anticipated. As a result of the rapid expansion of their employee base in Bozeman, MeatEater is requesting to amend the Business Assistance agreement and Management Plan to reflect the need to hire more employees and provide more time to recruit employees. UNRESOLVED ISSUES: None ALTERNATIVES: As proposed by the City Commission FISCAL EFFECTS: The proposed contract amendments do not impact the fiscal effects. EXHIBITS: 1) September 16, 2019 packet material; and 2) Montana Department of Commerce Contract Amendment # BSTF-1-19-12A. Report compiled on: 10-10-19 12 For the best experience, open this PDF portfolio in Acrobat X or Adobe Reader X, or later. Get Adobe Reader Now! 13 1 of 4 Big Sky Economic Development Trust Fund Contract Amendment # MT-BSTF-1-19-12A Montana Department of Commerce City of Bozeman COMMERCE CONTRACT #MT-BSTF-1-19-12 MONTANA DEPARTMENT OF COMMERCE CONTRACT AMENDMENT # MT-BSTF-1-19-12A This Contract Amendment is entered into by and between City of Bozeman, (“Contractor”) and the Montana Department of Commerce (“Department”). Program funds have been awarded to assist the Contractor and MeatEater, Inc. The Contractor and the Department mutually agree to amend Contract #MT-BSTF-1-19-12 (“Contract”), executed by them on May 3, 2019 as follows: 1. Section 1 of the Agreement is amended to read: PURPOSE The purpose of this Contract is to provide funding for Big Sky Economic Development Trust Fund (BSTF) Program (the Program) Economic Development Job Creation Project activities approved by the Department which the Contractor has applied for project funds pursuant to Sections 90-1-201 et seq., Montana Code Annotated (MCA). Program funds have been awarded to assist the Contractor and MeatEater, Inc., 1203 Rouse Suite 3B, Bozeman, Montana 59715, (the “Assisted Business”) with purchase of equipment, furniture, fixtures and wage reimbursement and the creation of jobs in Montana. The Assisted Business has agreed to create 20 eligible net new jobs at the project site located at Bozeman, Montana (the “Project Site”) in the Contractor’s jurisdictional area within the Contract time period. An eligible net new job is defined as one that is new to the company and has not been filled before January 16, 2019. Eligible new job criteria is a full-time job, meaning a predominantly year-round position requiring an average of 35 hours of work each week, and pays wages that meet or exceed $19.58 per hour, before the value of benefits is added. In addition, the Contractor and the Assisted Business have agreed to a total new investment at the Project Site, which is equal to or greater than $1 for every $1 of BSTF financial assistance received, within this Contract time period. 2. Section 6 of the Contract is amended to read: EFFECTIVE DATE AND TIME OF PERFORMANCE (a) This Contract shall take effect on January 16, 2019 and will terminate upon completion of the final closeout by the Department, or by January 16, 2021, whichever comes first, unless otherwise terminated in accordance with the terms of this Contract. DocuSign Envelope ID: 78EFA5CD-B4F8-4CB5-8B5B-2503939910BE 14 2 of 4 Big Sky Economic Development Trust Fund Contract Amendment # MT-BSTF-1-19-12A Montana Department of Commerce City of Bozeman (b) All Program award monies must be expended by the Contractor within the timeline specified in the Contractor’s application, which by reference is made a part of this Contract. The Contractor may modify the implementation schedule set forth in the Contractor’s application only upon obtaining prior approval of the Department. (c) Each party, after termination of this Contract, remains subject to and obligated to comply with all legal and continuing contractual obligations arising in relation to its duties and responsibilities that may arise under the contract including, but not limited to, record retention, audits, and indemnification. d) The Department reserves the right to extend this Contract based on but not limited to the Contractor’s performance of the contracted activities, the Contractor’s compliance with program requirements and the availability of program funding. 3. Section 7 of the Contract is amended to read: BUDGET (a) The total amount to be awarded to the Contractor under this Contract will not exceed $100,000.00 to be used as follows: • Up to $92,000.00 to assist the Assisted Business with the purchase of equipment, furniture, fixtures and wage reimbursement; and • Up to $8,000.00 for eligible administrative expenses. (b) The Project budget is set forth in the application, as submitted by the Contractor and approved by the Department, and as specifically incorporated by this reference. The Department must approve budget adjustments to the Project in advance. To obtain approval of a budget adjustment, the Contractor shall describe the rationale for a budget adjustment in writing to the Department. (c) Any Project expenses the Contractor fails to incur on or before January 16, 2021 will revert to the Big Sky Economic Development Trust Fund. 4. Section 8 of the Contract is amended to read: CONDITIONS ON METHOD OF REIMBURSEMENT (a) The total amount to be awarded to the Contractor under the Contract shall be up to $5,000.00 per eligible net new job created by the Assisted Business for documented costs with reimbursement not to exceed a total of $100,000.00 for the entire Contract. The Department will not reimburse the Contractor for any costs incurred prior to January 16, 2019, nor for any expenses not included in the approved budget or not clearly and accurately supported by the Contractor’s records. DocuSign Envelope ID: 78EFA5CD-B4F8-4CB5-8B5B-2503939910BE 15 3 of 4 Big Sky Economic Development Trust Fund Contract Amendment # MT-BSTF-1-19-12A Montana Department of Commerce City of Bozeman (b) The Contractor and the Assisted Business shall satisfy the matching funds requirements consistent with the purposes expressed in the application during the period of the Contract and shall meet or exceed the 1:1 required match ratio. (c) Unless otherwise authorized by the Department, the Contractor may receive award funds periodically over the Contract period only upon documenting the expenditure of the required matching funds and the creation of the eligible net new jobs by the Assisted Business, and after incurring eligible expenses. (d) The Department will use funds appropriated for the Program to fund awards to those entities that have received a Notice of Award letter. The Contractor acknowledges that its access to Program funds is subject to their availability. (e) The Department agrees that, if and when the funds described in paragraph (a) of this Section are available, the Department will authorize the Contractor to request payment from Program funding awarded for the Contractor’s Project. In requesting reimbursement, the Contractor will follow the instructions supplied by the Department. (f) The Contractor shall satisfy the matching funds requirements consistent with the purposes expressed in the Contractor’s application during the period of the Contract. (g) The Department will only release funds to reimburse eligible and documented costs. Funds can be requested by sending a Request for Payment, in the format prescribed by the Department, signed by duly authorized representatives of the Contractor. (h) As further set forth in Section 5 ACCEPTANCE OF PROGRAM REQUIREMENTS, and Section 24 TERMINATION OF CONTRACT, if the Contractor fails to or is unable to comply with any of the terms and conditions of this Contract, any costs incurred will be the Contractor’s sole responsibility and the Contractor agrees to repay to the Department any funds advanced under the Contract. (i) The Project funds may not be used to cover any costs incurred by the Contractor prior to January 16, 2019, for any expenses not included in the Contractor’s application or an approved adjustment thereto, or for any expenses not clearly and adequately supported by the Contractor’s records. (j) Once the Department has determined a Request for Payment to be complete, the Department is allowed thirty (30) working days to process a Request for Payment. The Contractor shall provide signatory and banking information at the time of Contract execution in order to facilitate electronic funds transfer payments. The Department may withhold payments to the Contractor if the Contractor has breached the terms of this Contract. (k) If actual Project expenses are less than projected in the budget, the Department, at its discretion, may reduce the amount of BSTF funds to be provided to the Contractor accordingly. DocuSign Envelope ID: 78EFA5CD-B4F8-4CB5-8B5B-2503939910BE 16 4 of 4 Big Sky Economic Development Trust Fund Contract Amendment # MT-BSTF-1-19-12A Montana Department of Commerce City of Bozeman (l) If the Department determines that the Contractor has failed to satisfactorily carry out its responsibilities under this Contract, the Department may withhold payment to the Contractor until such time as the parties agree on a plan to remedy the deficiency. (m) The Department reserves the right to withdraw a commitment of any Program funds for projects not ready to proceed within three (3) months after the date of tentative award. (n) If the Assisted Business creates an eligible new job but fails to sustain that job for the requisite duration, then the Contractor shall reimburse the Department all funds received for that job. If the Assisted Business fails to create the required number of jobs, then the Contractor shall reimburse the Department the difference between the total amount advanced and the amount attributable to actual jobs created. If the Assisted Business ceases operation at the Project Site, then the Contractor shall reimburse the Department all funds received under this Contract. (o) At the request of the Department, Requests for Payment for contracted or subcontracted services must attach appropriate documentation demonstrating compliance with contract requirements. (p) The Contractor may not use monies provided through this Contract as payment for Project costs that are reimbursed from other sources. (q) The Department will withhold ten percent (10%) of the total amount awarded to the Contractor until the Department approves the complete project and all tasks outlined in Section 2 SCOPE OF WORK are completed by the Contractor and approved by the Department. 5. All other provisions of the Contract remain in full force and effect. Cyndy Andrus, Mayor Date City of Bozeman ATTEST: ________________________________________________________________ Robin Crough, Clerk Date City of Bozeman Tara Rice, Director Date Montana Department of Commerce DocuSign Envelope ID: 78EFA5CD-B4F8-4CB5-8B5B-2503939910BE 17 Contract Information Sheet Division staff are required to complete the items in blue print. Amendment A Contract Number:MT-BSTF-1-19-12A Division: MOTBD Contractor's Name:City of Bozeman Contractor (Signee) Name:Cyndy Andrus Contractor's Email:candrus@bozeman.net Contractor's Address:P O Box 1230 Vendor Number: Contractor's Address 2:Bozeman, MT 59771-1230 23437 Contractor (Signee) Clerk:Robin Crough Contractor's Clerk Email:rcrough@bozeman.net Contractor Liaison:Brit Fontenot Contractor's Liaison Email:bfontenot@bozeman.net Begin Date: 1/16/2019 Duns Number: (Federal Funds Required)End Date: Amount:100,000.00 1/16/2021 Organization Number:535301 RFP Number (if applicable): Program Number:51 Liaison:Alyssa Townsend Program Manager:Annmarie Robinson Liaison Email:ath@mt.gov Bureau Chief:Jenny Pelej Liaison Phone:841-2748 Additional Email:arobinson3@mt.gov Signatures:Carbon Copies: Division Adminstrator Liaison: Fiscal Review Director (> $200K): Legal Counsel Deputy Director (<$25K): Filenet Secretary of State: BIA: Clerk of Court: DocuSign Envelope ID: 78EFA5CD-B4F8-4CB5-8B5B-2503939910BE 8/26/2019 8/26/2019 8/27/2019 18 Certificate Of Completion Envelope Id: 78EFA5CDB4F84CB58B5B2503939910BE Status: Sent Subject: Montana Department of Commerce Contract #MT-BSTF-1-19-12A for Signature Source Envelope: Document Pages: 5 Signatures: 3 Envelope Originator: Certificate Pages: 6 Initials: 0 Contracts Admin AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-07:00) Mountain Time (US & Canada) PO Box 200501 301 S. Park Ave Helena, MT 596200501 doccontracts@esign.mt.gov IP Address: 161.7.59.22 Record Tracking Status: Original 8/21/2019 3:03:53 PM Holder: Contracts Admin doccontracts@esign.mt.gov Location: DocuSign Signer Events Signature Timestamp Jennifer Pelej jpelej@mt.gov Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 161.7.59.23 Sent: 8/21/2019 3:08:28 PM Viewed: 8/26/2019 4:15:00 PM Signed: 8/26/2019 4:15:05 PM Electronic Record and Signature Disclosure: Accepted: 9/24/2019 8:45:28 AM ID: 84c42602-c041-48d2-bbae-3c3d08846a10 Teri Juneau tjuneau@esign.mt.gov Fiscal Manager MT Dept of Commerce Security Level: Email, Account Authentication (None) Signature Adoption: Drawn on Device Using IP Address: 174.45.41.193 Signed using mobile Sent: 8/26/2019 4:15:07 PM Viewed: 8/26/2019 7:45:00 PM Signed: 8/26/2019 7:45:10 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Garrett Norcott gnorcott@mt.gov Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 161.7.59.19 Sent: 8/26/2019 7:45:12 PM Viewed: 8/27/2019 8:22:45 AM Signed: 8/27/2019 8:22:53 AM Electronic Record and Signature Disclosure: Accepted: 8/27/2019 8:22:45 AM ID: ba6f9ffa-5c5f-48d8-af27-3bb9e8174bf5 Cyndy Andrus candrus@bozeman.net Security Level: Email, Account Authentication (None) Sent: 8/27/2019 8:22:54 AM Resent: 9/4/2019 2:38:31 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign 19 Signer Events Signature Timestamp Robin Crough rcrough@bozeman.net Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 8/28/2018 8:59:46 AM ID: 13c98e73-833d-4990-aff9-05c6e176613b Tara Rice tara.rice@mt.gov Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Annmarie Robinson arobinson3@mt.gov Security Level: Email, Account Authentication (None) Sent: 8/21/2019 3:08:29 PM Viewed: 9/27/2019 10:51:06 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Alyssa Townsend ath@mt.gov Security Level: Email, Account Authentication (None) Sent: 8/21/2019 3:08:28 PM Viewed: 9/24/2019 3:07:29 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Brit Fontenot bfontenot@bozeman.net Security Level: Email, Account Authentication (None) Sent: 9/5/2019 2:35:23 PM Viewed: 9/9/2019 8:46:59 AM Electronic Record and Signature Disclosure: Accepted: 6/16/2015 8:35:10 AM ID: 79fd0248-abf5-4575-a049-509ecf212ba1 Marty Tuttle matuttle@mt.gov Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Cyndi Davis CDavis3@mt.gov Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: 20 Carbon Copy Events Status Timestamp Accepted: 8/16/2019 2:16:22 PM ID: 47b5152b-e4c9-44c6-9836-08530deb4883 Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 9/5/2019 2:35:23 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure 21 ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, MT Dept of Commerce (we, us or Company) may be required by law to provide to you certain written notices or disclosures. 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