HomeMy WebLinkAboutC7. Elixiter Grant Award1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Director of Economic Development
SUBJECT: Montana Department of Commerce, Big Sky Economic Development
Trust Fund Program Grant Award to Elixiter
MEETING DATE: January 25, 2016
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Authorize Mayor Taylor to sign the Montana Department of
Commerce Big Sky Economic Development Trust Fund program contract, business assistance
agreement and management plan and authorize the City Manager, or their designee, to execute additional grant documents required to facilitate and manage the grant award to Elixiter.
BACKGROUND:
On August 3, 2015 the City Commission approved Resolution 4630 authorizing the
submittal and administration of the Big Sky Economic Development Trust Fund (“BSTF”) grant
application by the Prospera Business Network (“Prospera”) on behalf of Elixiter. (Exhibit 1)
On November 12, 2015, the Office of the Governor notified the City of Bozeman that the
City’s application, facilitated by Prospera, was approved and Elixiter was awarded up to $150,000
in BSTF Category I, Job Creation funding by the Montana Department of Commerce (DoC).
(Exhibit 2) Elixiter agrees to create up to 20 net new full time jobs that meet or exceed the BSTF
wage rate of $17.55 per hour, including employee benefits.
As part of the administration of the BSTF grant, the DOC and Prospera require the
sponsoring entity, the City of Bozeman (the “City”) to enter into several agreements with the DoC,
Prospera and Elixiter. (Exhibits 3 – 7)
ELIXITER:
Elixiter, founded in 2011, is a digital marketing agency serving business-to-business
clients with strategic, implementation and professional services on the Marketo and Salesforce
platforms. Their staff is 100% Marketo certified and provide proven revenue generation and
marketing attribution managed services. Elixiter delivers quick and effective business solutions, individually tailored for its 65 clients in 10 countries.
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Recent news about the growth and success of Elixiter includes the following articles and
reports linked below:
1. http://www.nbcmontana.com/news/hightech-industry-grows-in-bozeman/37303300 2. http://mthightech.org/elixiters-innovative-business-model-results-in-fast-growth-for-
bozeman-firm/
3. http://www.bozemandailychronicle.com/news/city/cannery-project-aims-to-anchor-
new-economic-hub-in-north/article_71f5a99b-5eb2-53bd-bd41-ed60159505b3.html
4. http://reviews.greatplacetowork.com/elixiter-inc 5. http://businessresources.mt.gov/News/ArtMID/20310/ArticleID/652/Elixiter-in-
Bozeman-Receives-Grant-Funding-to-Hire-and-Train-New-Employees
6. http://billingsgazette.com/special-section/montana-economy/startups-needed-to-
create-jobs-bozeman-s-elixiter-in-on/article_aaef1f4f-ca26-5214-9ed1-
568370e78815.html
During the term of the contract, Elixiter will endeavor to create up to 20 eligible net new
jobs in their existing Bozeman facility. The total amount to be reimbursed to the assisted business
under the Contract shall be up to $7,500.00 per eligible net new job created by the assisted business
for documented costs with reimbursement not to exceed a total of $150,000.00, minus grant administration dollars for the entire Contract.
A net new job must pay the average weekly wage that meets or exceeds the lesser of 170%
of Montana's current minimum wage *AND/OR* the current average weekly wage of the county
in which the employees are to be principally employed. The value of employee benefits can be included in this wage. The current average annual, weekly and hourly wage thresholds may be
obtained through the BSTF program web site at www.bstf.mt.gov or may be requested from the
Department. These figures are based upon the average weekly wage data produced by the Montana
Department of Labor and Industry for the most current year available.
An eligible net new job is defined as the following:
1. A new job to the company was created or filled on or after September 9, 2015;
2. Have at a minimum, a full-time job, meaning a predominantly year-round position
requiring an average of 35 hours of work each week; and 3. The job pays wages that meet or exceed $17.55 per hour, including employee benefits.
THE PROSPERA BUSINESS NETWORK: The City and Prospera work collaboratively on numerous economic development projects
including past BSTF grants (Apttus Corporation and Montana Instruments, 2013-2015). As they
have in the past, Prospera will provide grant administration, contract management and reporting
under the BSTF requirements. Additionally, Prospera currently manages the City’s Revolving Loan Fund.
Once the grant is funded, Prospera will administer the BSTF grant, contracts and satisfy
reporting elements of the BSTF award. Through the Economic Development Department, the City
will maintain oversight of the Prospera management of the BSTF grant award as the recipient entity for the grant funds, as required by the DOC.
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GRANT AGREEMENTS:
The following agreements must be entered into by the City to complete the grant and provide the award to Elixiter:
1. Montana Department of Commerce Big Sky Economic Development Trust Fund
Program Document (Contract # MT-BSTF-1-16-06) (this agreement provides the
Category 1 funding to the City); 2. Sub-recipient Agreement with Prospera (this agreement will authorize Prospera to
manage the grant program on behalf of the City);
3. Management Plan (covers the grant management requirements of the City,
Prospera, and Elixiter); and
4. Business Assistance Agreement (this agreement between the City and Elixiter details the conditions Elixiter must adhere to in order to obtain the grant funds
including the number of jobs, the salaries for the jobs, the use of the funds,
reporting, and other issues).
There may be additional documents wherein the DoC will require City approval. Authorization of this Consent item also authorizes the City Manager, or their designee, to execute
all additional documents to facilitate the grant award.
UNRESOLVED ISSUES: None
ALTERNATIVES: As proposed by the City Commission
FISCAL EFFECTS: As part of the contract, Prospera will earn administrative fees based upon the number of net new jobs Elixiter creates over the next two years. Additionally, minimal City
staff time is required to provide the appropriate review of documents and approvals.
Exhibits:
1) Resolution 4630;
2) Governor’s Office Letter of Award; 3) Montana Department of Commerce, Big Sky Economic Development Trust Fund Program
Contract # MT-BSTF-1-16-06;
4) # MT-BSTF-1-16-06 Management Plan;
5) # MT-BSTF-1-16-06 Business Assistance Agreement;
6) # MT-BSTF-1-16-06 Signature Certification; and 7) Completed City of Bozeman Budget Amendment Form.
Report compiled on: 01-14-16
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Page 1 of 15 Big Sky Economic Development Trust Fund Program Contract #MT-BSTF-1-16-06 Montana Department of Commerce Updated 10-16-15 City of Bozeman
MONTANA DEPARTMENT OF COMMERCE BIG SKY ECONOMIC DEVELOPMENT TRUST FUND PROGRAM
CONTRACT # MT-BSTF-1-16-06
This Contract is entered into by the City of Bozeman, P O Box 1230, Bozeman, Montana 59771-1230 (the “Contractor”), and the Montana Department of Commerce, Helena, Montana (the “Department”).
The Contractor and the Department hereby agree to the following terms:
Section 1. 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 Elixiter, Inc., 113 East
Oak Street, Bozeman, MT 59715-2939 (the “Assisted Business”) with the purchase
of equipment, lease rate reduction 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 113 East Oak Street, Bozeman, MT 59715-2939 (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 September 9, 2015. Eligible new job criteria’s 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 $17.55 per hour, including employee benefits that meet the requirements
of the Employee Retirement Income Security Act of 1974, 29 U.S.C. 1001, et seq.
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 $2 of BSTF financial assistance received, within this Contract time period.
Section 2. SCOPE OF WORK The Contractor hereby agrees to engage in Project activities as set forth in the Contractor’s application, including any written modifications resulting from the review of the application by the Department for Project assistance, all of which, by this reference
are made a part hereof.
The major components of the Project include the purchase of equipment and lease
rate reduction, and documentation that the matching requirement has been met and
documentation of eligible job creation in Bozeman, Montana, and the administration of
this Contract.
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Section 3. AUTHORITY
This Contract is issued under authority of Title 90, Chapter 1, Part 2, Montana Code
Annotated, and the Administrative Rules of Montana, Title 8, Chapter 99.
Section 4. APPLICATION INCORPORATED BY REFERENCE
The Contractor’s application for Program assistance and all appendices thereto,
including any written modifications resulting from the review of the application by the Department (collectively, the “Project”), is incorporated into this Contract by this reference and the representations made therein are binding on the Contractor.
Section 5. ACCEPTANCE OF PROGRAM REQUIREMENTS
(a) The Contractor shall comply with all applicable local, state, tribal, and federal laws, regulations, ordinances, and resolutions, and all administrative directives
and procedures established by the Department, including all the provisions,
guidelines and requirements set forth on the Program’s website:
http://bstf.mt.gov. (b) The Contractor expressly agrees to repay to the Department any funds advanced
under this Contract that the Contractor, or its contractors, subcontractors, or sub
recipient entities, or any public or private agent or agency to which it delegates
authority to carry out portions of this Contract, expends in violation of the terms of this Contract, the statutes and regulations governing the Program, or any applicable local, state, tribal, or federal requirements.
Section 6. EFFECTIVE DATE AND TIME OF PERFORMANCE
(a) This Contract shall take effect on September 9, 2015 and will terminate upon completion of the final closeout by the Department, or by September 9, 2016,
whichever comes first, unless otherwise terminated in accordance with the terms
of this Contract.
(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
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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, and the Contractor’s compliance with program requirements.
Section 7. BUDGET
(a) The total amount to be awarded to the Contractor under this Contract will not exceed $150,000.00 to be used as follows:
Up to $142,500.00 to assist the Assisted Business with the purchase of equipment and lease rate reduction; and
Up to $7,500.00 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 September 9,
2016 will revert to the Big Sky Economic Development Trust Fund.
Section 8. CONDITIONS ON METHOD OF REIMBURSEMENT (a) The total amount to be awarded to the Contractor under the Contract shall be up
to $7,500.00 per eligible net new job created by the Assisted Business for
documented costs with reimbursement not to exceed a total of $150,000.00 for
the entire Contract. The Department will not reimburse the Contractor for any
costs incurred prior to September 9, 2015, nor for any expenses not included in the approved budget or not clearly and accurately supported by the Contractor’s
records.
(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 1:2 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.
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(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 September 9, 2015, 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.
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(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 purchase of
equipment and lease rate reduction and all tasks outlined in Section 2 SCOPE OF WORK are completed by the Contractor and approved by the Department.
Section 9. REPORTING REQUIREMENTS
(a) Quarterly Project Progress Reports. Unless otherwise specified by the Department, the Contractor will also submit Project Progress Reports quarterly to the Department until the Contractor receives Contract closeout approval from the
Department. The Project Progress Report must be provided on or before April
30th to cover the January 1-March 31 reporting period, July 31st to cover the
April 1-June 30 reporting period, October 31st to cover the July 1-September 30 reporting period, and January 31st to cover the October 1-December 31 reporting period, for each year of the Contract period and at closeout of the
Contract. These reports will describe the status of the activities set forth in
Section 2 SCOPE OF WORK, including, at a minimum:
Certified employment documentation from the Assisted Business that includes the breakdown of jobs created, using the Job Status Spreadsheet
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and accompanying Job Certification Form; Written Progress Report that should include the following items:
o detailing progress towards achieving the hiring objectives and
project goals that were described in the application;
o projected completion date;
o any difficulties encountered in working towards these goals;
o any changes within the assisted business structure, business name
or changes to its registration with the Montana Secretary of State’s
office;
o any other pertinent information (b) The employment level of Elixiter, Inc. one day prior to the contract effective date
of September 9, 2015 is 27 permanent, full-time employees onsite, per the
certified baseline job report.
(c) The report must also describe any significant problems encountered in carrying
out the Project and the scope of any necessary modifications the Contractor is
requesting in the SCOPE OF WORK, BUDGET, or Project implementation
schedule. The State, at its discretion, may decline to honor the final ten percent (10%) Request for Payment if any required project progress reports have not
been submitted.
(d) Request for Payment with Report. Request for Payment with reports must
include all items listed in Section 9(a), plus the following:
The Request for Payment Form signed by two authorized representatives,
Project Progress Report detailing progress towards achieving the hiring
objectives and project goals that were described in the application as well as describing any difficulties encountered in working towards these goals,
Approved documentation verifying eligible costs were incurred,
Documentation of matching funds expended to date.
(e) Project Closeout. Upon completion of the final Project, the Contractor will submit
a signed final Project Completion Report. The Project Completion report should
include all items in Section 9(a) and (c), with a request for payment for the final
10% of the award.
Once the Department accepts the final Project Completion Report and the
final payment is processed, the Contractor will complete a Closeout
Certification Form.
Once the Department approves the Closeout Certification Form from the
Contractor, the Department will officially closeout the project and send a letter
of closeout to the Contractor.
The Department may request additional documentation, when in the exercise of its
judgment such documentation is needed to confirm performance.
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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.
Section 10. LIAISONS
The contact persons for this Contract are:
For the Department: Annmarie Robinson (or successor) Section Manager, Big Sky Economic Development Trust Fund Program, MDOC
P.O. Box 200505
Helena, MT 59620-0505
406-841-2250
For the Contractor:
Brit Fontenot (or successor)
Director of Economic Development
City of Bozeman
P O Box 1230 Bozeman, MT 59771-1230
406-582-2258
Section 11. PROJECT MEETINGS (a) Progress Meetings. During the term of the Contract, the Department may plan
and schedule progress meetings with the Contractor to discuss the progress
made by the Contractor and the Department in the performance of their
respective obligations. These progress meetings may include the parties’
liaisons and any other additional personnel involved in the performance of the contract as required. At each such meeting, the Contractor may be requested to
provide the Department with a written status report that identifies any problem or
circumstance encountered by the Contractor, or of which the Contractor gained
knowledge during the period since the last such status report, which may prevent
the Contractor from completing any of its obligations or may generate charges in excess of those previously agreed to by the parties. Contractor may be
requested to identify the amount of excess charges, if any, and the cause of any
identified problem or circumstance and the steps taken to remedy the same.
(b) Technical or Contractual Problems. The Contractor is required to meet with the Department’s liaison to resolve technical or contractual problems that may occur
during the term of the Contract, at no additional cost to the Department.
Meetings will occur as problems arise and will be coordinated by the Department.
Failure to participate in problem resolution meetings or failure to make a good
faith effort to resolve problems may result in termination of the Contract.
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Section 12. ACCESS TO AND RETENTION OF RECORDS
The Contractor shall create and maintain records of the services covered by this
Contract, including but not limited to financial records, supporting documents, and such
other records as are required by law or other authority, and to provide the Department, Montana Legislative Auditor, or their authorized agent’s access to any records necessary to determine contract compliance. (Mont. Code Ann. § 18-1-118.) The
Contractor agrees to create and retain records supporting the services rendered or
supplies delivered for a period of three (3) years after either the completion date of the
Contract or the conclusion of any claim, litigation, or exception relating to the Contract taken by the State of Montana or third party, whichever is later. These records will be kept in the Contractor’s offices in Bozeman, Montana.
Section 13. PROJECT MONITORING
(a) The Department or any of its authorized agents may monitor and inspect all phases and aspects of the Contractor’s performance to determine compliance
with the SCOPE OF WORK, the proper use of Program funds, and other
technical and administrative requirements of this Contract, including the
adequacy of the Contractor’s records and accounts. The Department will advise
the Contractor of any specific areas of concern and provide the Contractor opportunity to propose corrective actions acceptable to the Department.
(b) Failure by the Contractor to proceed with reasonable promptness to take
necessary corrective actions shall be a default. If the Contractor’s corrective
actions remain unacceptable, the Department may terminate this Contract in whole or in part, or reduce the contract price or award to reflect the reduced
value of services received.
Section 14. COMPLIANCE WITH APPLICABLE LAWS The Contractor must, in performance of work under the Contract, fully comply with all
applicable federal, state, or local laws, rules and regulations, including the Montana
Human Rights Act, the Civil Rights Act of 1964, the Age Discrimination Act of 1975, the
Americans with Disabilities Act of 1990, and Section 504 of the Rehabilitation Act of
1973 and the Patient Protection and Affordable Care Act (“Affordable Care Act”). Any subletting or subcontracting by the Contractor subjects subcontractors to the same
provisions. In accordance with Mont. Code Ann. § 49-3-207, the Contractor agrees that
the hiring of persons to perform the Contract will be made on the basis of merit and
qualifications and there will be no discrimination based upon race, color, religion, creed,
political ideas, sex, age, marital status, physical or mental disability, or national origin by the persons performing the Contract.
The Affordable Care Act requires a Contractor, if Contractor is an applicable large
employer under the ACA, to provide healthcare coverage for its employees, who
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provide services for the State and work for 30 or more hours per week. This coverage must also cover the eligible employee’s dependents under the age of 26.
The coverage must (a) meet the minimum essential coverage, minimum value, and
affordability requirements of the employer responsibility provisions under Section 4980H
of the Code (ACA), and (b) otherwise satisfy the requirements of the Code § 4980 H (ACA) if provided by the State.
Section 15. AVOIDANCE OF CONFLICT OF INTEREST
The Contractor will comply with all applicable laws regarding the avoidance of conflict of interest. In addition, the Contractor agrees that none of its officers, employees, or agents will solicit or accept gratuities, favors, or anything of monetary value from
contractors, subcontractors, or potential contractors and subcontractors, who provide or
propose to provide services relating to the project funded under this Contract.
Section 16. ACCOUNTING, COST PRINCIPLES, AND AUDITING
(a) The Contractor, in accordance with Section 18-4-311, MCA; 5 U.S.C. App. 3 §§ 1
et seq.; OMB Circular A-133; and other authorities, must maintain for the
purposes of this Contract an accounting system of procedures and practices that
conforms to Generally Accepted Accounting Principles (GAAP).
(b) The Department, Montana Legislative Auditor, Inspector General of the U.S.
Department of Commerce, or any other legally authorized governmental entity or
their authorized agents may, at any time during or after the term of this Contract,
conduct, in accordance with Sections 5-13-204 and 18-1-118, MCA; 5 U.S.C. App. 3 §§ 1 et seq.; OMB Circular A-133; and other authorities, audits for the
purposes of ensuring the appropriate administration and expenditure of the
monies provided through this Contract and to ensure the appropriate
administration and delivery of services provided through this Contract.
(c) The Contractor, for purposes of audit and other administrative activities, in
accordance with 18-1-118, MCA; 5 U.S.C. App. 3 §§ 1 et seq.; OMB Circular A-
133; and other authorities, must provide the Department, Montana Legislative
Auditor, Inspector General of the U.S. Department of Commerce, or any other
legally authorized governmental entity or their authorized agents access at any time to all of their respective records, materials and information, including any
and all audit reports with supporting materials and work documents, pertinent to
the services provided under this Contract until the expiration of three (3) years
from the completion date of this Contract. The Department and any other legally
authorized governmental entity or their authorized agents may record any information and make copies of any materials necessary for the conduct of an
audit or other necessary administrative activity.
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Section 17. OWNERSHIP AND PUBLICATION OF MATERIALS
All reports, information, data, and other materials prepared by the Contractor, or any of
its contractors or subcontractors, in furtherance of this Contract are the property of the
Contractor and the Department, which both have the royalty-free, nonexclusive, and irrevocable right to reproduce, publish or otherwise use, and to authorize others to use, in whole or part, such property and any information relating thereto. No material
produced in whole or part under this Contract may be copyrighted or patented in the
United States or in any other country without the prior written approval of the
Department and the Contractor. Section 18. ASSIGNMENT, TRANSFER, AND SUBCONTRACTING
(a) The Contractor may not assign, transfer, delegate, or subcontract, in whole or
part, this Contract or any right or duty arising under this Contract, unless the
Department in writing approves the assignment, transfer, delegation, or subcontract.
(b) Any assignment, transfer, delegation, or subcontract entered into by the
Contractor must be in writing, must be subject to the terms and conditions of this
Contract, and must contain any further conditions as may be required by the Department.
(c) The Department’s approval of any assignment, transfer, delegation, or
subcontract neither makes the Department a party to that contract nor creates
any right, claim, or interest in favor of any party to that contract against the Department.
(d) The Contractor must immediately notify the Department of any litigation
concerning any assignment, transfer, delegation, or subcontract. Section 19. HOLD HARMLESS AND INDEMNIFICATION
The Contractor agrees to protect, defend, and save the Department, its elected and
appointed officials, agents, and employees, while acting within the scope of their duties
as such, harmless from and against all claims, demands, causes of action of any kind or character, including the cost of defense thereof, to the extent arising in favor of the
Contractor’s employees or third parties on account of bodily or personal injuries, death,
or damage to property arising out of Contractor’s negligence in connection with services
performed or omissions of services or in any way resulting from the negligent acts or
omissions of the Contractor and/or its agents, employees, representatives, assigns, contractors, subcontractors, except the negligence of the Department under this
agreement.
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Section 20. INSURANCE
(a) General Requirements. Contractor shall maintain and shall assure that its
representatives, assigns, and subcontractors maintain for the duration of the
Contract, at their own cost and expense, liability insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the duties and obligations in the Contract by
Contractor, its agents, employees, representatives, assigns, or subcontractors.
This insurance shall cover such claims as may be caused by any negligent act or
omission. The Department, its officers, officials, and employees are to be covered as additional insured's for all claims arising out of the use of award proceeds provided by the State of Montana.
(b) General Liability Insurance. At its sole cost and expense, the Contractor shall
purchase occurrence coverage with minimum combined single limits of $1 million
per occurrence and $2 million aggregate per year, or as established by statutory Tort limits of $750,000 per claim and $1,500,000 per occurrence as provided by
a self-insurance pool insuring counties, cities, or towns, as authorized under
Section 2-9-211, MCA.
(c) Professional Liability Insurance. Contractor shall assure that any representatives, assigns, and subcontractors performing professional services
under this Contract purchase occurrence coverage with combined single limits
for each wrongful act of $1,000,000 per occurrence and $2,000,000 aggregate
per year. Note: if "occurrence" coverage is unavailable or cost prohibitive, the
Contractor may provide "claims made" coverage provided the following conditions are met: (I) the commencement date of the contract must not fall
outside the effective date of insurance coverage and it will be the retroactive date
for insurance coverage in future years; and (2) the claims made policy must have
a three (3) year tail for claims that are made (filed) after the cancellation or
expiration date of the policy.
(d) Property Insurance. At its sole cost and expense, the Contractor shall maintain
property and hazard insurance, including course of construction coverage, and
earthquake insurance in areas where there is a shaking level above 10g (see
map at http://www.rmtd.mt.gov/content/aboutus/publications/files/NEHRP.pdf) for loss or damage for any building and all related improvements and contents
therein on the premises on a replacement cost basis throughout the term of the
contract.
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(e) General Provisions. All insurance coverage shall be placed with a carrier licensed to do business in the State of Montana or by a domiciliary state and with
a Best's rating of at least A-, or by a public entity self-insured program either
individually or on a pool basis as provided by Title 2, MCA. All certificates and
endorsements are to be received by the Department prior to beginning any activity provided for under the Contract. Contractor shall notify the Department immediately of any material change in insurance coverage, such as changes in
limits, coverage, change in status of policy, etc. The Department reserves the
right to request complete copies of Contractor's insurance policy including
endorsements at any time.
Section 21. INDEPENDENT CONTRACTOR
The Contractor and its employees or agents performing under this Contract are not
employees or agents of the Department. The Contractor will not claim to be an officer
or employee of the Department by reason of this Contract, nor will it make any claim of right, privilege or benefit which would accrue to a civil service employee of the State of Montana.
Section 22. DEBARMENT
The Contractor certifies and agrees to ensure during the term of this Contract that neither it nor its principals, contractors, or subcontractors are debarred, suspended,
proposed for debarment, declared ineligible, or voluntarily excluded from participation in
this Contract by any governmental department or agency. If the Contractor cannot
certify this statement, it has attached a written explanation for review by the Department.
Section 23. CONTRACT AMENDMENT
Except as otherwise set forth herein, this Contract may not be enlarged, modified, or altered except upon written agreement by all parties to the Contract.
Section 24. TERMINATION OF CONTRACT
This Contract may only be terminated in whole or in part as follows: (a) Termination Due to Loss or Reduction of Funding. The Department, at its sole
discretion, may terminate or reduce the scope of this Contract if available funding
sources are eliminated or reduced for any reason. If a termination or
modification is so required, the Department may, if sufficient program funds are
available, compensate the Contractor for eligible services rendered and actual, necessary, and eligible expenses incurred as of the revised termination date.
The Department will notify the Contractor of the effective date of the termination
or modification of this Contract and, if a reduction in funding is required, will
provide the Contractor with a modified Project budget.
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(b) Termination for Cause with Notice to Cure Requirement. The Department may
terminate this Contract for failure of the Contractor, its contractors, or subcontractors to perform or comply with any of the services, duties, terms or conditions contained in this Contract after giving the Contractor written notice of
the stated failure. The written notice will demand performance of the stated
failure within a specified period of time of not less than thirty (30) days. If the
demanded performance is not completed within the specified period, the termination is effective at the end of the specified period.
(c) Effect of Termination. In the event of termination due to the Contractor's, its
contractors', or subcontractors' failure to perform or comply with any of the
services, duties, terms, or conditions of this Contract, the Contractor shall return
all funds received under this Contract. Any costs incurred will be the
responsibility of the Contractor. However, at its sole discretion, the Department
may approve requests by the Contractor for reimbursement of expenses
incurred. The Department’s decision to authorize payment of any costs incurred
or to recover expended Program funds will be based on a consideration of the
extent to which the expenditure of those funds represented a good faith effort of
the Contractor to comply with the any of those services, duties, terms, or
conditions of this Contract, and on whether the failure to comply with any of those
services, duties, terms, or conditions resulted from circumstances beyond the
Contractor's control.
Section 25. DEFAULT
Failure on the part of either party to perform the provisions of the Contract constitutes
default. Default may result in the pursuit of remedies for breach of contract as set forth
herein or as otherwise legally available, including but not limited to damages and specific performance.
Section 26. NO WAIVER OF BREACH
No failure by the Department to enforce any provisions hereof after any event of breach shall be deemed a waiver of its rights with regard to that event, or any subsequent
event. No express failure of any event of breach shall be deemed a waiver of any
provision hereof. No such failure or waiver shall be deemed a waiver of the right of the
Department to enforce each and all of the provisions hereof upon any further or other
breach on the part of the Contractor.
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Section 27. COMPLIANCE WITH WORKERS’ COMPENSATION ACT
The Contractor accepts responsibility for supplying, and requiring all subcontractors to
supply, the Department with proof of compliance with the Montana Workers’
Compensation Act while performing work for the State of Montana. (Mont. Code Ann.
§§ 39-71-401, 39-71-405, and 39-71-417.) Neither the Contractor nor its employees are
employees of the State. The proof of insurance/exemption must be in the form of
workers’ compensation insurance, an independent contractor exemption, or
documentation of corporate officer status and must be received by the Department
within 10 working days of the execution of this Contract, and must be kept current for
the entire term of the contract.
CONTRACTS WILL BE TERMINATED PURSUANT TO THE PROVISIONS OF
SECTION 24 TERMINATION OF CONTRACT IF THE CONTRACTOR FAILS TO
PROVIDE THE REQUIRED DOCUMENTATION WITHIN THE ALLOTTED TIME
FRAME.
Coverage may be provided through a private carrier or through the State Compensation
Insurance Fund (406) 444-6500. An exemption can be requested through the
Department of Labor and Industry, Employment Relations Division (406) 444-1446.
Corporate officers must provide documentation of their exempt status.
Section 28. FORCE MAJEURE Neither party shall be responsible for failure to fulfill its obligations due to causes
beyond its reasonable control, including without limitation, acts or omissions of
government or military authority, acts of God, materials shortages, transportation
delays, fires, floods, labor disturbances, riots, wars, terrorist acts, or any other causes,
directly or indirectly beyond the reasonable control of the non-performing party, so long as such party is using its best efforts to remedy such failure or delays.
Section 29. SEPARABILITY
A declaration by any court, or any other binding legal forum, that any provision of the Contract is illegal and void shall not affect the legality and enforceability of any other
provision of the Contract, unless the provisions are mutually dependent.
Section 30. NOTICE All notices required under the provisions of the Contract must be in writing and delivered
to the parties’ liaisons identified herein either by first class mail or personal service.
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Section 31. NO ARBITRATION
Unless otherwise agreed to in writing or provided for by law, arbitration is not available
to the parties as a method of resolving disputes that would arise under the Contract.
Section 32. REFERENCE TO CONTRACT
The Contract number must appear on all invoices, reports, and correspondence
pertaining to the Contract.
Section 33. JURISDICTION AND VENUE
This Contract is governed by the laws of Montana. The parties agree that any litigation
concerning this Contract must be brought in the First Judicial District in and for the
County of Lewis and Clark, State of Montana, and each party shall pay its own costs
and attorney fees. (Section 18-1-401, MCA).
Section 34. FUNDING ACKNOWLEDGEMENT
All materials developed wholly or in part by the funding provided under the Contract
shall state that “The funding for the (insert name of project) was funded (in part, if applicable) by an award from the Montana Department of Commerce.” Any variations
from this language must be approved by the Department prior to use. The Department
of Commerce logo is also available for use upon request.
Section 35. INTEGRATION
This contract contains the entire agreement between the parties, and no statements,
promises, or inducements of any kind made by either party, or the agents of either
party, not contained herein or in a properly executed amendment hereto are valid or
binding. Amendments to this contract must be signed by both parties.
IN WITNESS OF THE TERMS SET OUT ABOVE, the parties hereto have
caused this Contract to be executed on the dates set out below.
By: ________________________________________________________________ Jeff Kraus Date
Mayor, City of Bozeman
By: ________________________________________________________________
Meg O’Leary Date
Director, Montana Department of Commerce
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Big Sky Economic Development Trust Fund Program Montana Department of Commerce Category I – Economic Development Effective Date July 1, 2013
SIGNATURE CERTIFICATION FORM
Nancy Faroni, Section Manager
Business Resources Division
Montana Department of Commerce
301 S. Park - P.O. Box 200523
Helena, Montana 59620-0523
This is to certify that the following officials1 are authorized to sign requests for payment of Montana Big Sky Economic Development Trust funds for the (name of grantee: City, Town, or County of) FY 20__ BSTF grant:
1. __________________________________ __________________________
Signature Title
__________________________________ __________________________
Typed Name
2. __________________________________ __________________________ Signature Title
__________________________________ __________________________
Typed Name
3. __________________________________ __________________________
Signature Title
__________________________________ __________________________
Typed Name
It is understood that any two of the above signatories must sign each request for payment submitted.
1
Suggested signatories include the chief elected official (Mayor or Chairperson of County Commission), city or county clerk or treasurer and the BSTF project
manager. At least three officials should sign; and it is acceptable to have more to assure that at least two signatories will be available to sign requests for BSTF
funds.
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2
Big Sky Economic Development Trust Fund Program Montana Department of Commerce Category I – Economic Development Effective Date July 1, 2013
2 I hereby certify that I have witnessed the signing of the above named signatures.
___________________________________ Date: _______________________ Signature of Witness
___________________________________
Typed Name and Title of Witness
State of Montana
County of __________________ This instrument was signed before me on __________________
by________________________________________________________________.
Print name of signer(s)
Affix seal/stamp as close to
signature as possible.
________________________________________
Notary Signature
[Montana notaries must complete the following,
if not part of stamp.]
_________________________________________
Printed Name
Notary Public for the state of _________________
Residing at________________________________
My Commission expires:___________, 20_______
2
Suggested witness is an elected official other than one of the three signatories.
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