HomeMy WebLinkAboutAgenda - 12-14-2004-5mORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 14, 2004
Action Agenda
Item No. 5-,.ya
SUBJECT: 2004-2005 Small Business and Technology Development Center (SBTDC)
Contract Renewal
DEPARTMENT: Economic Development PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
A. SBTDC Contract
B. Orange County Success Stories
INFORMATION CONTACT:
Dianne Reid, ext 2326
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To consider renewal of a contract to continue support of small business
development services far Orange County residents, as stated in the Economic Development
Strategic Plan adopted May 14, 1996, and reaffirmed by the Economic Development
Commission in its strategic planning session in August 2000.
BACKGROUND: A primary gcal 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 an ar about January 15, 2005 and the second on or about Aprill5, 2005.
During fiscal year 2003-2004 (July 2003 - .tune 2004), the SBTDC staff (which included one bi-
lingual counselor) served 185 Orange County clients for a total of 2,425..5 hours of counseling
time:
• 101 clients were considered Emerging Businesses (pre-venture clients - in the process
of starting their business -and start-up companies). These businesses received 645.5
hours of counseling and represented 26.6% of all cases in the County.
• 56 were Traditional Businesses (more than 3 years in business and less than $1 million
in revenues). These firms received 1,020,25 hours of counseling and represented 42.1%
of cases in the County.
• 17 were Small-Medium Size Enterprises (mare than 3 years in business and more than
$1 million in annual revenue).. These firms received 467.25 hours of counseling and
represented 19.3% of all cases in the County.
• 5 companies were Venture Track companies and received 127 hours of counseling.
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• SBTDC also assisted 6 "other" clients, primarily non-profits with 165,5,hours of service,
which represented 6,8% of cases and received 122 phone calls from Orange County zip
codes requesting information for a total of 31,65 hours of service.
• SBTDC also conducted 10 two-hour Pre-venture Orientation sessions totaling 132 client
counseling hours and serving 66 clients,
During the 2003-2004 fiscal year, the SBTDC helped seven Orange County businesses secure
$42,732,313 in capital (including debt financing, equity investment, and one refinancing), This
was disproportionately represented by three companies in the life science/technology cluster,
which received approximately forty million dollars in venture capital/federal funding. The
remaining clients received from $100,000 to $748,000 each, Attachment B describes several
local business success stories for last year.
Annual economic impact assessments undertaken at the state level (pertormed 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 2004-2005 includes $10,000 for professional contract services for this
contract with the SBTDC.
RECOMMENDATION(S): The Manager recommends that the Board approve the contract and
authorize the Manager and the Clerk to the Board to execute the contract subject to final review
by staff and the County Attorney,
NORTFI 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 the University of North Carolina at
Chapel Hill for and on behalf of its Small Business and Technology Development Center,
5 West Hargett Street, Suite 600, Raleigh, North Carolina 27601-1.348, 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 tluee
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 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 and other business start-up and assistance resources at no charge to the
businesses..
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 baiilcers). These will be scheduled bi-annually throughout
the teen 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, Goodworlc, 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 Linder this agreement beyond the terms of
this agreement.
Ninth, 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 15, 2004,
and the final payment will be paid on or about April 15, 2005.
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, 2004 and
ending .Tune 30, 2005.
Thirteenth, this agreement maybe tern~inated 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 tern~inate 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 the
University of North Carolina at Chapel Hill 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 Director, Office of Research Services, and all authority duly given, the day and yeaz
first above written,.
ORANGE COUNTY
By:
.John M. Link
County Manager
ATTEST:
Cleric to the Orange County
Board of Commissioners
i7NIVERSITY OF NORTH CAROLINA AT CHAPEL HILL
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 , 2004.
Notary Public
My commission expires:
North Carolina
Orange County
I, , a Notary Public for said County
and State, do hereby certify that Robert P. Lowman personally appeared before me this day
and acknowledged that he is the Director of the Office of Research Services, University of
North Carolina at Chapel Hill, and that by authority duly given and as the act of the
University of North Carolina at Chapel Hill, the foregoing instrument was signed in its
name by him.
Witness my hand and official seal, this the day of , 2004.
Notary Public
My conunission expires:
7
Attachment B
ORANGE COUNTY SUCCESS STORIES
• SBTDC staff conducted two "NxLeveL for Entrepreneurs" (six week) programs during fall
03 and spring 04, at ICenan-Flagler School of Business (KFSB). These programs were co-
sponsored by the SBTDC, KFSB, and Elon University's Love School of Business, with
discounts to our local chamber of commerce members, Approximately twenty local small
business owners participated, representing both for-profit and several longstanding non-profit
institutions. The primary goal of these business classes was for clients to write /rewrite
comprehensive business plans for their organizations,
• Family Recreation /Sports Arena -Business was assisted by means of an SBTDC supervised
/ NCCU Law School supervised second year law student who conducted a small business
legal audit. In addition, company was provided strategic needs assessment and strategic
mazketing assessment tools to assist in future planning and a ramped up marketing campaign.
Continued work with this enterprise is expected.
• Start-up Restaurant Business -Client was assisted with a variety of "preventure" planning
and tasks ranging fiom menu selection to writing a comprehensive business plan to
determine feasibility of business, location, and likelihood of funding.
• Pharmaceutical company #1 - A robust small pharmaceutical business experiencing rapid
growth with a particular chemical compound /drug development was helped to expand its
markets, and to develop specific tazget drugs, Much of the assistance provided was in the
azea of market research and marketing. In paztnership with the North Carolina
Biotechnology Center and venture capitalists, the SBTDC provided technical assistance to
review and help win both Phase I and Phase II SBIR (Small Business Innovation Research)
federal grants.
• Pharmaceutical company #2 - A second emerging pharmaceutical/drug development
company was assisted to win both Phase I and Phase II SBIR grants, The SBTDC
collaborated with a local university to help secure this grant money, to position the company
for more growth, and to assist in the creation of additional high-wage ,jobs for our
community.
• Life Training /Stress & Anger Management Company -This entrepreneurial company
owned by eminent university faculty was provided an MBA team to focus on marketing
strategies, e-commerce marketing, azid profits as part of the SBTDC's 17th annual MBA case
competition. The company also won significant SBIR grant funding during this timeframe,