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HomeMy WebLinkAboutAgenda - 01-23-2007-5jORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 23, 2007 Action Agenda Item No. ?- SUBJECT: 2006-2007 Small Business and Technology Development Center (SBTDC) Contract Renewal DEPARTMENT: Economic Development PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: A. SBTDC Contract Dianne Reid, 245-2326 B. Orange County Success Stories PURPOSE: The purpose of this contract renewal is to continue support of small business development services for Orange County citizens, as stated in the Economic Development Strategic Plan adopted May 14, 1996, and reaffirmed by the Economic Development Commission in its new strategic plan, Investing in Innovation: 2005-2010. BACKGROUND: A primary goal of the Economic Development Commission since its inception has been providing assistance to small businesses to enable them to grow and prosper in Orange County. The Small Business and Technology Development Center (SBTDC) provides significant services to local businesses and has operated under contract with Orange County since 1990. The contract provides for $10,000 to be paid in two installments of $5,000 each. The first is to be paid on or about January 31, 2007, and the second on or about June 30, 2007. During calendar year 2006, the SBTDC served 217 Orange County clients for a total of 2,992 hours of counseling time with an additional 94 hours of travel time. Nearly 34 percent of clients were non-white and nearly 45 percent were women-owned businesses. Businesses were evenly split between existing businesses and those just forming their enterprises; 25 were home-based businesses (up from 17 the previous year). Additionally, the SBTDC helped 11 Orange County businesses secure $6.7 million in capital (the majority of this from Small Business Administration technology grants to small businesses doing innovative research). Attachment B describes local business success stories for last year. Annual economic impact assessments undertaken at the state level (performed by an independent assessment. firm) show that SBTDC clients significantly outperform the average for all North Carolina small businesses in both sales and employment growth. FINANCIAL IMPACT: The annual budget for the Economic Development Commission approved for Fiscal Year 2006-07 includes $10,000 for professional contract services for the renewal of this contract with the SBTDC. RECOMMENDATION(S): The Manager recommends that the Board approve the contract renewal and authorize the Manager and the Clerk to the Board to execute the contract. Attachment A NORTH CAROLINA ORANGE COUNTY THIS AGREEMENT, made and entered into the day of , by and between Orange County, North Carolina, 200 S. Cameron Street, Hillsborough, North Carolina, hereinafter referred to as "County" and North Carolina State University for and on behalf of its Small Business and Technology Development Center, 5 West Hargett Street, Suite 600, Raleigh, North Carolina 27601-1348, hereinafter referred to as the "SBTDC". WITNESSETH: WHEREAS, the on-going work of the Orange County SBTDC is consistent with the Orange County Economic Development Strategic Plan; and WHEREAS, the work of the Orange County SBTDC, the development of more comprehensive small business information, and a public awareness and educational program on the services available to small business, is an integral part of meeting the objectives specified in the Orange County Economic Development Strategic Plan; and WHEREAS, the Orange County Economic Development Commission, hereinafter referred to as the EDC, has endorsed the Orange County SBTDC concept, and has encouraged the County's support, financial and otherwise; and WHEREAS, the EDC is an agency of the County; and WHEREAS, economic development is an important public purpose which can be aided by contributions of Orange County funds; and WHEREAS, Orange County supports the Economic Development Strategic Plan, and public-private initiatives to implement the Plan. Now, therefore, in consideration of the above and the mutual covenants and considerations hereinafter set forth, the County and the SBTDC agree as follows: First, in consideration of the EDCs on-going support, the SBTDC will maintain a regional office in Orange County. This will consist, at minimum, of the presence of three professional staff members in the County. Second, the SBTDC will make its general business consulting services and more specialized services and counseling in the areas of international trade, technology development, and government procurement (including Pro-Bid) available to small firms and would-be entrepreneurs throughout the County. Where appropriate SBTDC will work with specific clients referred by the EDC. Third, one or more resources libraries will be maintained in the County and handout materials will be available. The SBTDC also will provide access to specialized Software such as RMACompare2, a loan package evaluation and spreadsheet program, and other business start-up and assistance resources at no charge to the businesses. 4 Fourth, the SBTDC will continue to develop and offer with the EDC and other sponsors a variety of training programs both for small business firms and for those who serve small businesses (such as bankers). These will be scheduled bi-annually throughout the term of this agreement. A specific focus during the term of this contract shall be assistance to female and minority owned businesses. Fifth, the SBTDC will work actively to increase public awareness of and access to its services throughout the County. A visitation effort will be conducted to acquaint Orange County's employers with services that can assist them with expansion. Efforts will be made to fully involve other agencies and resources such as Chambers of Commerce, SCORE, the local community college, Goodwork, Self Help, and local professional and civic groups. Sixth, the SBTDC will provide technical assistance, business plan and loan package preparation assistance to businesses and individuals preparing to apply for financing from the Orange County Small Business Loan Pool. Seventh, the SBTDC will provide the EDC with a written report within 30 days of the close of each quarter. This will detail the program and service activities of the SBTDC in Orange County for the quarter. The SBTDC also will provide a report of client evaluations of services each quarter. Eighth, the SBTDC will make its best good faith effort to continue and/or expand the level of service in Orange County proposed under this agreement beyond the terms of this agreement. Ni nth, in return for the foregoing, the County will pay the SBTDC $10,000 in two $5,000 installments. The first such installment shall be paid on or about January 31, 2007, and the final payment will be paid on or about June 30, 2007. Tenth, the EDC will actively support and promote the programs and services of the SBTDC within Orange County. Eleventh, the Director of the EDC will remain a member of the SBTDC Regional Advisory Board as long as this agreement is in effect. Twelfth, the term of this agreement will be 1 year beginning July 1, 2006 and ending June 30, 2007. Thirteenth, this agreement may be terminated at any time upon the mutual consent of the parties or upon 90 days advance written notice by either party. Fourteenth, the SBTDC authorizes inspection by the Orange County Finance Director or his designee of so much of the books and records of the SBTDC, which document receipt and expenditure of County funds. The books and records of the SBTDC shall be made available to the County Finance Director or his designee upon reasonable notice. Fifteenth, in the event that the SBTDC ceases to function or ceases to provide the services described herein without a County approved written assignment or release by County of its responsibilities, this agreement will terminate and- the SBTDC will return any moneys paid the SBTDC pursuant to this agreement. IN WITNESS WHEREOF, Orange County has caused this Agreement to be signed in its name by its County Manager, attested by the clerk to the Board of Commissioners and -North Carolina State University acting for and on behalf of its Small Business and Technology Development Center has caused this Agreement to be signed in its name by its Associate Vice Chancellor, Research Administration, and all authority duly given, the day and year first above written. ORANGE COUNTY Bv: Laura Blackmon County Manager ATTEST: Clerk to the Orange County Board of Commissioners NORTH CAROLINA STATE UNIVERSITY By: Robert P. Lowman, . Director Office of Research Services NORTH CAROLINA ORANGE COUNTY I, , Notary Public for said County and State, certify that Donna Baker personally came before me this day and acknowledged that she is Clerk to the Board of Commissioners of Orange County, and that by authority duly given and as the act of Orange County, the foregoing instrument was signed in its name by John M. Link, Jr., Orange County Manager, sealed with its official seal, and attested by herself as its Clerk. Witness my hand and official seal, this the day of , 2006. Notary Public My commission expires: NORTH CAROLINA WAKE COUNTY I, , a Notary Public for said County and State, do hereby certify that personally appeared before me this day and acknowledged that he is . North Carolina State University, and that by authority duly given and as the act for of North Carolina State University, the foregoing instrument was signed in its name by him. Witness my hand and official seal, this the . day of , 2006. Notary . Public My commission expires: Attachment B Orange County Success Stories #1 An occupational therapy business from another county was assisted in establishing a second location in Chapel Hill. The SBTDC conducted a strategic needs assessment (SNA) with all staff of the facility, a financial benchmarking assessment (RMA - Risk Management Associates- Compare II analysis), and a small business legal audit utilizing local 3rd year law students, all at no cost to the company. Company owners, managers, and staff were debriefed as to findings. As a result, the business entity was changed to an S-corporation, with considerable, legitimate tax savings; three new employees were hired, and sales have increased considerably (36% compared to 3 yrs ago although final 2006 figures are not yet in). #2 A local Day Spa business in southern Orange County slightly less than two years requested help with the financing of their business, and to help improve operations / profits. The company was losing money. After a financial analysis of the company' operations, company owners were assisted in successfully raising $50,000 in additional working capital. Operations were streamlined. Two new employees were hired, and the company is now profitable. #3 An upscale pet food and supplies company in Carrboro was assisted in many ways with its current performance and wish to expand operations. The SBTDC secured the help of a local MBA team to do in-depth work with the company's owner. This work focused on daily operations, inventory control, and personnel decisions / management. A financial analysis (RMA Compare II) was conducted on the company's business. A third year law student from UNC School of Law was brought in to conduct a legal audit, and to do legal research regarding intellectual property, business entity, and legal matters related to expansion / replication / franchising of the business. The company plans to add at least one new job, is now searching for additional warehouse space in western Orange County, has eclipsed the one million dollar per year mark in sales, and expects to be debt-free (including repayment of its Carrboro revolving loan fund loan) by the end of the year.