HomeMy WebLinkAboutReso 64-2021 (21-214)City of South San Francisco P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
City Council
Resolution: RES 64-2021
File Number: 21-214 Enactment Number: RES 64-2021
RESOLUTION APPROVING A MEMORANDUM OF
UNDERSTANDING WITH THE COUNTY OF SAN
MATEO DEFINING A PARTNERSHIP AND
FINANCIAL RELATIONSHIP FOR A BUSINESS AND
ENTREPRENEURSHIP CENTER IN SOUTH SAN
FRANCISCO.
WHEREAS, beginning on March 16, 2020, Shelter in Place health orders began to widely
affect all businesses in San Mateo County, as well as throughout the country, lasting for much of 2020
and into 2021; and
WHEREAS, the effects of the Pandemic have created drastic economic outcomes to many
businesses, but especially the most vulnerable small businesses such as non-English speaking business
owners and those separated by the digital divide; and
WHEREAS, small businesses in San Mateo County have been challenged by a reduction in
workforce, a lack of working capital, a difficulty in obtaining COVID relief programs, and an overall
need to revamp their business model to survive in a post-COVID economy; and
WHEREAS, at its February 23, 2021 South San Francisco City Council Special Meeting, a
study session was held to discuss the implementation of an economic mobility initiative to create a
Business Resource and Entrepreneurship Center within the City of South San Francisco to enhance
business assistance services and centralize them into both a virtual and brick -and -mortar location near
the City's downtown; and
WHEREAS, at its March 9, 2021 County of San Mateo Board of Supervisors Meeting, an
appropriation of $200,000 was approved for the implementation of a business assistance center to serve
the northern part of San Mateo County; and
WHEREAS, the funding contribution from San Mateo County would support the City of San
Francisco's effort to create the Business Resource and Entrepreneurship Center through a Memorandum
of Understanding ("MOU") for the initial phases of the project; and
WHEREAS, the components of the MOU include a one year term, a fifty-fifty split of all hard
costs associated with the Center, the City entering into a contract with Renaissance Entrepreneurship
Center
City of South San Francisco Page 1
File Number. 21-214
Enactment Number. RES 64-2021
("Renaissance") as the preferred partner to offer initial small business assistance services, with the
County funding the first phase of the contract with Renaissance expected to be in the range of $75,000.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San
Francisco hereby approves the MOU in substantially the form attached, allowing the City and County to
partner in regional and local efforts to help small businesses.
BE IT FURTHER RESOLVED that the City Manager, or his designee, is authorized to execute
the MOU, and to make any revisions, amendments, or modifications, deemed necessary to carry out the
intent of this resolution which do not materially alter or increase the City's obligations thereunder,
subject to approval as to form by the City Attorney.
Exhibit A - draft MOU with San Mateo County
At a meeting of the City Council on 3/24/2021, a motion was made by Vice Mayor Nagales, seconded by
Councilmember Coleman, that this Resolution be approved. The motion passed.
Yes: 5 Mayor Addiego, Vice Mayor Nagales, Councilmember Nicolas, Councilmember
Coleman, and Councilmember Flores
Attest by A4 #ZAI W4
iosa Govea Acosta, City Clerk
City of South San Francisco Page 2
1
MEMORANDUM OF UNDERSTANDING
between
CITY OF SOUTH SAN FRANCISCO
and
SAN MATEO COUNTY
(SMALL BUSINESS AND ENTREPRENEURSHIP RESOURCE
CENTER)
This Memorandum of Understanding (“MOU”), is entered into this ____ day of
, 2021 (the “Effective Date”) by and between the City of South San Francisco (the “City”),
a municipal corporation of the State of California, and the County of San Mateo (the “County”), a
political subdivision of the State of California (collectively, the “Parties”), and it sets forth the
Parties’ understanding and expectations related to the pilot program that includes the establishment
and operation of a North County Small Business and Entrepreneurship (“SBE”) Resource Center,
to assist small business owners and entrepreneurs with support in the areas of legal matters, human
resources-related matters, business planning, financial matters, technology, group purchasing and
other needs.
RECITALS
A. WHEREAS, prior to the COVID-19 pandemic, the City and cities in northern San Mateo
County, including the Cities of Colma, Daly City, Millbrae, Pacifica, San Bruno and Brisbane
(collectively with the City and unincorporated areas in the vicinity of these cities, “North
County”) were facing challenges along multiple fronts, including housing cost and supply,
income inequality, transportation and environmental sustainability; and
B. WHEREAS, the effects of the COVID-19 pandemic have exacerbated these challenges, with
many small businesses, including restaurants, hotels and motels, personal services operations,
and “mom and pop” stores in the North County struggling to remain open or shutting down
altogether; and
C. WHEREAS, the Renaissance Entrepreneurship Center in East Palo Alto has demonstrated the
benefits of having a small business incubator and business training and support program
embedded in the community during the COVID-19 pandemic; and
D. WHEREAS, to make small business training and support readily available to small business
owners and budding entrepreneurs in North County, the City issued a Request for
Qualifications for an SBE Resource Center (“RFQ”) on February 3, 2021 seeking to identify
service providers with proven experience assisting small businesses and entrepreneurs with
targeted technical assistance, accessing capital and overall support with post-COVID-19
business recovery and long-term sustainability; and
E. WHEREAS, the City received full submittals in response to its RFQ on or before March 3,
2021 and has since selected the Renaissance Center as the service provider to be awarded the
2
contract for the establishment and operation of the SBE Resource Center (“Service Provider”),
subject to approval from City Council; and
F. WHEREAS, the Parties agree that, working together, they can deliver more readily available,
effective and robust training and support to small business owners and budding entrepreneurs
in North County and, therefore, the County has agreed to contribute funds in a total amount
not to exceed TWO HUNDRED THOUSAND DOLLARS ($200,000) for use towards the
establishment and operation of a SBE Resource Center, including real property rental
expenses, on a pilot basis for one year (“Pilot Period”), as set forth in Section 2 below; and
G. WHEREAS, while the Center is envisioned to serve all of North County, the Center will
endeavor to serve all South San Francisco-based small businesses that come forward for
assistance, as quickly and to the fullest extent that the Center’s staffing and resources can
allow;
H. WHEREAS, the Parties acknowledge the truth of the Recitals set forth above which are hereby
incorporated into this MOU.
NOW THEREFORE, the Parties agree to be bound by the following terms in the MOU:
TERMS AND CONDITIONS
1. Term; Termination; Dispute Resolution.
A. This MOU will expire one (1) year from the Effective Date, unless earlier
terminated by either Party as set forth herein, or extended by the Parties in
accordance with Section 9.A., “Authorizations.”
B. This MOU may be terminated, without cause, by either Party upon 30 days
written notice to the other Party. Notwithstanding the immediately preceding
sentence, the Parties acknowledge and agree that this MOU anticipates that the
City will enter into an agreement with the Service Provider and a lease for
space for the SBE Resource Center in reliance upon the County contribution
of funds described in Section 2 of this Agreement. The Service Provider has
stated that it must hire additional staff to perform the desired services and will
do so only with at least a one-year commitment of funding. Additionally, the
City anticipates that the lease for the SBE Resource Center space will be for a
term of at least one year. In light of those facts, the County agrees that if it
terminates this MOU prior to the end of the initial term, it will maintain its
contribution of funds described in Section 2 of this Agreement.
C. In the event that either Party has a concern about the performance of the other
Party or the Service Provider, or the Parties have a disagreement regarding the
interpretation or implementation of this MOU, the Parties agree that a
3
representative of each shall meet and confer informally to resolve the matter.
If the Parties agree that an amendment of the MOU is necessary or desirable
to address the issue, they shall do so pursuant to Section 9.A. If the issue cannot
be resolved through the informal meet and confer process, the Parties may
terminate this MOU after reaching agreement about their respective funding
obligations relative to the contractual obligations of the City with respect to
the Service Provider and the SBE Resource Center lease.
2. Contribution of Funds. The County will contribute a total of TWO HUNDRED
THOUSAND DOLLARS ($200,000) toward the operation and establishment of the SBE Resource
Center, including real property rental expenses, during the Pilot Period. The City will contribute
a total amount at least equal to the County’s contribution toward the operation and establishment
of the SBE Resource Center, including real property rental expenses, during the Pilot Period.
3. Contracting Agency. The City will serve as the contracting agency for the Service
Provider selected through the RFQ process. The City will manage the contract with the
Service Provider, handling official communications regarding the establishment and operation of
the SBE Resource Center and will pay the Service Provider for work performed. The City will
confer with the County regarding any material issues related to contract administration or with
respect to any material concerns related to Service Provider performance. The City will also serve
as the contracting agency for the lease of commercial property related to operation and
establishment of the SBE Resource Center.
4. Target Businesses. The Parties agree that the SBE Resource Center will be
established and operate for the benefit of community-based small businesses (collectively, “Target
Businesses”), which are defined as businesses:
• With the equivalent of 50 or fewer full-time employees or less than $5 million in annual
revenues, with the amount of County funding reserved to serve small businesses with the
equivalent of 10 or fewer full-time employees or less than $2.5 million in annual revenues.
The Parties will meet and confer regarding how to establish that a business qualifies
as a Target Business.
• That have a primary office, storefront, or business space located in North County or
are owned by a resident of North County.
The Parties agree that to the extent that businesses that have a current business license from a local
jurisdiction within San Mateo County, or that are owned by a resident of San Mateo County seek to
participate in SBE Resource Center programs, but they do not fall within the definition of Target
Business, they will be referred to other programs in the County that may be able to provide similar
assistance and support.
The Parties may agree to expand this definition relative to the number of full-time employees or
annual revenue if SBE Resource Center programs are undersubscribed. The Parties may also agree to
expand this definition to include all businesses that have a current business license from a local
4
jurisdiction within San Mateo County, or that are owned by a resident of San Mateo County if SBE
Resource Center programs are undersubscribed.
The Parties further agree that in addition to operating the SBE Resource Center for the benefit of
Target Businesses, the Service Provider will design, offer, and promote programs attractive to “hard
to reach” businesses, which include without limitation:
• Target Businesses owned by or offering products or services to people whose
primary language is not English; and
• Target Businesses owned by people with limited access to technology and who are
unlikely to be reached through standard online marketing.
Target Businesses located in or owned by a resident of the City shall be given an opportunity to
pre-enroll for events, trainings, and/or resources provided at the SBE Resource Center. In the
event that SBE Resource Center programs are oversubscribed, the Parties will meet and confer
informally to determine how to ensure that Target Businesses located in or owned by a resident
of the City are able to access programs.
5. Multi-Phased Development of SBE Resource Center. The Parties acknowledge
that the intent is that the SBE Resource Center be developed in the following three phases:
Phase 1: In Phase 1, the Service Provider, in addition to assisting with marketing and
outreach to Target Businesses, will provide “rapid response” relief efforts to existing Target
Businesses. This will include, at a minimum, assistance with identifying and applying for
economic relief and recovery financing programs at the federal, state, regional and local
levels; understanding, fluctuating real estate costs, and taking advantage of real estate
opportunities; receiving targeted technical assistance to updates to business plans; and
maintaining or expanding an online presence, and expanding to ecommerce. These Phase I
services may be provided virtually or offsite, although when possible, the Service Provider
shall utilize community spaces in the City for in-person support.
Phase 2: Concurrent with delivery of services in Phase 1, the Service Provider will work
with City and County staff, over a period of three to nine months, to design a long-term
program to facilitate economic sustainability for Target Businesses and which will include
the maintenance of a central flex space to be used for offices, classes, walk-ins, and one-
on-one counseling.
Phase 3: Phase 3 consists of the implementation of the long-term program designed in
Phase 2 and will include pursuing financing identified in Phase 2. The initial
implementation period may utilize the Service Provider from Phases 1 and 2, or a different
Service Provider, depending on program needs.
6. Monthly Reports. The City will include in its agreement with the Service Provider
appropriate provisions requiring the Service Provider to provide the City and the County with
5
monthly reports in a format reasonably designated by the City and the County, setting forth
information regarding clients served, the jurisdictions where clients reside and/or where clients’
businesses are located and other information reasonably requested by the City or County.
7. Monthly Meetings. The City shall include in its agreement with the Service Provider
provisions requiring the Service Provider to meet at least monthly with the City and the County to
discuss the status of the Program and results achieved. The City or, at the City’s direction, the
Service Provider, will be responsible for calendaring, hosting and facilitating monthly meetings
among the Service Provider, the City and the County to review the status of the establishment and
operation of the SBE Center during the Pilot Period and to discuss matters of concern to any party.
8. Recordkeeping & Audit. As the monetary contributions to the SBE Resource Center
under this MOU may consist of federal funds, the City agrees to include in any contract(s) between
the City and Service Provider(s) the provisions of the County’s Emergency Agreement
Requirements (Attachment E), a copy of which is attached to this MOU.
9. General Provisions
A. Authorizations. The County Manager and the City Manager, or their
respective designees, are authorized to amend the MOU and its terms,
resolve conflicts, and/or otherwise grant approvals on behalf of their
respective agencies, provided such approvals are not otherwise vested in
the authority of the agency’s governing board. All such requests and
approvals shall be in writing and signed by both Parties.
B. Mutual Indemnification; Insurance. Pursuant to Government Code
Section 895.4, each Party shall fully indemnify, defend, and hold the
other Party (including its appointed and elected officials, officers,
employees, and agents) harmless and free from any damage or liability
imposed for injury (as defined by Government Code Section 810.8)
occurring by reason of the negligent acts or omissions or willful
misconduct of the indemnifying Party, its appointed or elected officials,
officers, employees, or agents, under or in connection with any
responsibility, authority, or jurisdiction delegated to such Party under this
MOU. Neither Party, nor any appointed or elected official, officer,
employee, or agent thereof, shall be responsible for any damage or liability
occurring by reason of the negligent acts or omissions or willful
misconduct of the other Party, its appointed or elected officials, officers,
employees, or agents, under or in connection, with any authority,
responsibility, or jurisdiction delegated to such other Party under this
MOU. The City shall ensure that where the Service Provider is
contractually required to maintain insurance and to name the City as an
additional insured, the County is also named as an additional insured on
all such insurance policies.
6
C. Choice of Law; Venue. The formation, interpretation and performance
of this MOU shall be governed by the laws of the State of California.
Venue for all litigation relative to the formation, interpretation and
performance of this MOU shall be in San Mateo County Superior Court.
D. Notices. Any notice to be given to the Parties shall be in writing and shall
be served, either personally or by mail, to the following:
In case of the County, to:
Name/Title: Michael Callagy, County Manager
Address: 400 County Center, 1st Floor, Redwood City, CA 94063
In the case of the City, to:
Name/Title: Mike Futrell, City Manager
Address: 400 Grand Avenue, South San Francisco, CA 94080
Such notices shall be served by depositing them addressed as set out above,
postage prepaid, in the U.S. mail, reliable overnight courier, or by personal
delivery. The date of mailing, or in the event of personal delivery, the date of
delivery shall constitute the date of service.
E. Construction. All section headings are for reference only and shall not
be considered in construing this MOU.
F. Severability. If any provision of this MOU shall be held to be invalid,
void, or unenforceable, the validity, legality, or enforceability of the
remaining portions hereof shall not in any way be affected or impaired
thereby.
G. Entirety of Agreement. This MOU represents the entire and
complete MOU between the Parties and supersedes any prior
negotiations, representations and agreements, whether written or
oral. This MOU may be modified only as provided in Section 9.A.
“Authorizations.”
H. Cooperative Drafting. This MOU has been drafted through a
cooperative effort of all the Parties, and all the Parties have had an
opportunity to have the MOU reviewed and revised by legal
counsel. No Party shall be considered the drafter of this
Agreement, and no presumption or rule that an ambiguity shall be
construed against the Party drafting the clause shall apply to the
interpretation or enforcement of this MOU.
I. Representation re Authority of Parties/Signatories. Each person
7
signing this MOU represents and warrants that he or she is duly
authorized and has legal capacity to execute and deliver this MOU.
Each Party represents and warrants to the other that the execution and
delivery of the MOU and the performance of such Party’s obligations
hereunder have been duly authorized and that the MOU is a valid and
legal agreement binding on such Party and enforceable in accordance
with its terms.
J. No Third Party Beneficiaries. Except as expressly set forth herein,
nothing contained in this MOU is intended to or shall be deemed to
confer upon any person, other than the Parties, any rights or remedies
hereunder.
K. Debt Limitation. The Parties are subject to laws or policies which
limit their ability to incur debt in future years. Nothing in this MOU
shall constitute an obligation of future legislative bodies of the County
or City to appropriate funds for the purpose of this MOU.
L. Conflict of Interest. Each of the Parties shall avoid all conflicts of interest
in the performance of this MOU and shall immediately notify the other
Parties should a conflict of interest arise that would prohibit or impair its
ability to perform under this MOU.
M. Disputes. The City and County agree that, regarding all disputes or
disagreements arising under this MOU that are not resolved informally at
the staff level after a good faith attempt by the Parties, the Parties may, at
their sole and mutual discretion, agree to engage in mediation. The costs of
the mediation shall be divided equally between the Parties, unless otherwise
agreed.
N. Non-Discrimination. Neither the City nor County will discriminate, in any
way, against any person on the basis of sex, pregnancy, childbirth or related
medical conditions, race, veteran status, religion, color, national origin or
ancestry, physical or mental disability, medical condition, marital status,
age, gender (including gender identity and gender perception), sexual
orientation, use of family medical leave, genetic testing, or any other basis
protected by federal or state law in connection with or related to the
performance of the MOU.
O. Counterparts. This MOU may be executed in counterparts, each of which
will be deemed an original and all of which together will constitute a
complete agreement. Moreover, this MOU may be signed by electronic
signature and copies of original signatures shall be treated the same as the
originals.
8
[SIGNATURES ON FOLLOWING PAGE]
9
IN WITNESS WHEREOF, the PARTIES hereto, by their duly authorized representatives, have
executed this Memorandum of Agreement.
“City”
City of South San Francisco, a municipal
corporation of the State of California
By:
Name: Mike Futrell Date
Title: City Manager
“County”
County of San Mateo, a political
subdivision of the State of California
By:
Name: Michael Callagy
Title: County Manager Date
3718110.1