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HomeMy WebLinkAbout12-08-08_Authorize City Manager to sign Montana Department of Commerce/Big Sky Economic Development Trust Fund Assistance AgreementPage | 1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Consent: Assistance Agreement Amendment between CDI Business Solutions – Aerospace (“CDI”), and the City of Bozeman. MEETING DATE: December 8, 2008 RECOMMENDATION: Approve the amended Assistance Agreement. BACKGROUND: City of Bozeman has been awarded a grant by the Montana Department of Commerce (the Department) under the Big Sky Economic Development Trust Fund (BSEDTF) for job training for local CDI-Aerospace employees. This grant is administered by Prospera Business Network under an agreement with the city, and the city acts as a pass-through government sponsor. Prospera receives a fee for their services, paid by the grantor. Through amendments with the Department of Commerce, CDI-Aerospace has been successful in getting the terms of the grant changed to better meet their training needs and current business model. This includes changes in the number of employees trained and an extension of the grant period. In order to finalize these changes, the city needs to formally approve the amendments. 40 Page | 2 FISCAL EFFECTS: No material effects for the city. The pass-through amounts to CDI- Aerospace and Prospera Business Network change according to the terms of this agreement. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, Anna Rosenberry, Finance Director Chris Kukulski, City Manager Report compiled on: December 3, 2008 41 MONTANA DEPARTMENT OF COMMERCE BIG SKY ECONOMIC DEVELOPMENT TRUST FUND ASSISTANCE AGREEMENT AMENDMENT This Assistance Agreement Amendment is made and entered into this 9th day of November, 2008, by and between CDI Business Solutions – Aerospace (“CDI”), and the City of Bozeman. RECITALS WHEREAS the City of Bozeman, has been awarded a grant by the Montana Department of Commerce (the Department) under the Big Sky Economic Development Trust Fund (BSEDTF) and the grant termination date has been extended to November 9, 2009; WHEREAS the City of Bozeman and CDI, entered into an Assistance Agreement (attached) on November 9, 2006 to allow CDI to receive BSEDTF funds from the City of Bozeman to expand a business enterprise within the City of Bozeman jurisdictional area; and WHEREAS the City of Bozeman and CDI, have agreed to extend the term of the attached Assistance Agreement until November 9, 2009; and the parties agree to amend the attached Assistance Agreement as follows: 1. CDI has agreed to create and train 30 eligible net new full-time equivalent (FTE) positions to be employed at the building located at 201 Evergreen Drive, Bozeman, Montana 59715. 2. The City of Bozeman agrees to reimburse CDI for eligible documented training costs of $4,750 per eligible net new position, not to exceed a total of $142,500 dollars for the entire Agreement Term. 3. Upon reasonable request, CDI Business Solutions-Aerospace shall provide substantiation of its investment in capital in excess of the required $150,000 new investment at the project site. All other provisions of the Contract remain in full force and effect. This Agreement is made and entered into on the 9th day of November 2008. Al Moreno, CDI Division Manager Date CDI Business Solutions - Aerospace Chris Kukulski, City Manager Date City of Bozeman 42