Title
Health and Human Services Agency, Community Services Division, recommending the Board authorize the Chair to sign Agreement for Services No. 574-S1211 with Los Rios Community College District, Northeastern California Small Business Development Center (SBDC), for the provision of services to individuals and businesses under the County Business/ Microenterprise Assistance Program, Microenterprise Technical Assistance Program, funded by the California State Department of Housing and Community Development (HCD) Community Development Block Grant (CDBG) Economic Development Allocation, 09-EDEF-6547, in the not-to-exceed amount of $84,370, for a term to become effective upon final execution by both parties hereto and shall expire March 13, 2013.
FUNDING: Federal Community Development Block Grant.
Body
Fiscal Impact/Change to Net County Cost
There is no additional County cost associated with this Agreement for Services. The required County match of $2,000 under the grant agreement has been budgeted towards County general administrative costs.
Compensation: Compensation is based on services provided by the vendor as detailed within the Agreement for Services and reimbursed to the County from the State.
Termination: Agreement includes the County's standard Fiscal Considerations termination language as well as a provision for the County to terminate the Agreement without cause in seven (7) calendar days upon written notice.
Background
The Microenterprise Assistance and the Business Assistance Loan Programs were established by the County and funded through an award from the California State Department of Housing and Community Development (HCD) Community Development Block Grant (CDBG) Economic Development Allocation. The Microenterprise Assistance Program furthers the County's goal of supporting local business by providing technical assistance services and loans ranging between $1,000 and $25,000 for applicants seeking business start-up or current business owners who meet HCD grant requirements. The business must employ or plan to employee five (5) or fewer employees, including the owner(s). The applicant must earn 80 percent or below of the area median income based on household size. The business must operate in the unincorporated areas of El Dorado County. Loan funds can be used for working capital, purchase of supplies and equipment, property acquisition and leasehold improvements.
On August 25, 2009, the Board adopted Resolution No. 197-2009 authorizing submittal of an application to HCD for an Economic Development Block Grant (EDBG) to continue to provide the activities of the Microenterprise Assistance and Business Loans. A $300,000 grant was awarded on May 19, 2010, and the grant agreement was executed on September 28, 2010.
At the request of the Health and Human Services Agency, Community Services Division, the Procurement and Contracts Division issued Request for Proposal (RFP) #12-918-023 for the purpose of hiring a firm to provide services to qualified applicants under the grant. Two consulting firms submitted proposals. Health and Human Services and Development Services personnel evaluated the proposal responses on the basis of technical qualifications, ability to meet time schedules, education and background, references, fee schedule, and proposal content. The RFP did not result in the selection of a consultant to provide the full range of services available under the grant.
Los Rios Community College District, Northeastern California Small Business Development Center (SBDC), was identified as a subconsultant by one respondent to the RFP who subsequently withdrew their proposal. As SBDC's activities were under the amount required for an RFP and SBDC remained interested in providing services for the Microenterprise Program, HHSA seeks to enter into an Agreement for Services with SBDC for provision of the technical assistance activities to eligible individuals or businesses.
SBDC has provided business services to other jurisdictions in our region. Activities to be performed by SBDC include assisting qualified business owners and potential business owners by developing and delivering a business training program for microenterprises; providing one-on-one technical assistance and mentoring; assisting with the development a business plan; and assisting in the preparation of a loan application. Total award under this agreement is not to exceed $84,370 with this Agreement expiring concurrent with the expiration of the grant agreement between the County and HCD.
Reason for Recommendation
HHSA staff is unable to absorb the additional workload to adequately fulfill the obligations under the grant agreement. Further, some tasks to be performed under the grant agreement, such as business technical assistance, coaching and mentoring, require specific private enterprise experience not currently available within HHSA. As these duties are required only for a limited duration, until March 31, 2013, hiring of permanent staff is not warranted. Consequently, the HHSA has determined that contracting to an outside consultant is the most efficient and cost-effective method for delivering these services. (Refer 12/16/08, Item 49)
Action(s) to be taken following Board approval
1) Board Chair to sign three original Agreements;
2) Clerk of the Board's Office to return two signed Agreements to HHSA at Briw Road; and
3) HHSA to distribute as appropriate.
Contact
Daniel Nielson, M.P.A., Director
Concurrences
County Counsel