HomeMy WebLinkAboutResolution - 2527 - Lease Agreement - BOCD, & TTU - Small Business Development Center - 02/12/1987Resol. #2527
February 12, 1987
Agenda Item #23
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BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby approves the
attached Letter Agreement between the Board of City Development and Texas
Tech University, as amended, with regard to the development of a Small
Business Development Center by Texas Tech University.
Passed by the City Council this 12th day of — February , 1987.
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B. C. McMINN, MAYOR
ATTEST:
Ranett6—Boyd, City—Secret&ry
APPROVED AS TO CONTENT:
614 1 4:f
Bob Cass, Deputy City Manager
APPROVED AS TO FORM:
DoWald G. Vandiver, First Assistant
City Attorney
I
1 4
Resolution #2527
MEMORANDUM
January 30, 1987
MEMO TO: Larry Cunningham
City Manager
City of Lubbock
FROM: Richard Greenberg, President
Board of City Development v /
SUBJECT: Letter of Agreement: BCD/TTU Re: Small Business
Development Center
The Letter of Agreement between the BCD and Texas Tech has been
returned to us with two additions. The additions are more
particularly described as follows:
1. At the end or Paragraph 1 of the Letter of Agreement,
the clause "...insofar as the Constitution and laws of the State
of Texas permit." has been added, clarifying the fact that the
indemnity given by Texas Tech in that paragraph is valid only to
the extent that Texas Tech is otherwise legally empowered to make
such an indemnity.
2. On the third line of Paragraph 6 of the Letter of
Agreement, the words "or TTU" have been added. As so amended, the
paragraph authorizes either BCD or Texas Tech to terminate the
agreement on thirty days' written notice.
There are no other changes to the Letter of Agreement as previ-
ously approved by the City Council.
We have reviewed these two changes with BCD legal counsel, and we
all concur that the changes are not objectionable. The first
change merely states what would be the applicable law anyway, and
the second change, while altering the agreement in a minor
respect, is not objectionable since it does not alter Texas
Tech's responsibilities upon termination of the agreement. Be-
cause these changes were made after the City Council had consid-
ered and approved the contract, however, we believe it is neces-
sary that the revised Letter of Agreement be resubmitted to the
City Council for reapproval. We do recommend reapproval of the
Letter of Agreement, as revised.
Please schedule this item for consideration by the City Council
at its earliest convenience. If you should have any questions
regarding this matter, please give me a call.
Resolution #2527
Contract No. MU230
LETTER OF AGREEMENT
Lubbock Board of City Development
and
Texas Tech University
WHEREAS, the LUBBOCK BOARD OF CITY DEVELOPMENT ("BCD") has
been given responsibility for overall economic development
efforts for the City of Lubbock, Texas, and, in carrying out
those responsibilities, finds that it is desirable to contract
with certain other persons, associations, corporations and/or
governmental entities for personal and professional services to
assist it in the performance of its duties and discharge of
designated tasks; and
WHEREAS, TEXAS TECH UNIVERSITY ("TTU") has received a U.S.
Small Business Administration ("SBA") Notice of Award to
establish the "Northwest Texas Small Business Development
Center," said Award requiring that TTU provide matching funds
from non-federal sources;
WHEREAS, the BCD, at a regular meeting held on May 30,
1986, agreed to provide to TTU the sum of $25,000.00 cash and
office facilities as a portion of the matching funds required to
be furnished by TTU under the terms of the above-described
Notice of Award;
NOW, THEREFORE, BCD and TTU agree as follows:
1. TTU agrees to establish the Northwest Texas Small
Business Development Center in accordance with the agreement
between TTU and SBA. In establishing such center and conducting
its work, TTU shall be an independent contractor and not an
agent or employee of BCD for any purpose, and TTU agrees to
indemnify and hold harmless BCD and the City of Lubbock from and
against any and all claims, liabilities, causes of action and
expense of any kind whatsoever, including reasonable attorney's
fees, relating to and/or arising out of the performance by TTU
of the work described herein, insofar as the Constitution and
laws of the State of Texas permit.
2. In consideration of the work to be performed by TTU,
BCD has this day paid to TTU the sum of $25,000.00 for use as a
share of the matching funds to be provided under the SBA grant,
TTU agrees that such contribution will be used only in the City
of Lubbock, Texas. Additionally, BCD agrees to provide to TTU
office space for the Northwest Texas Small Business Development
Center. The amount and location of such office space shall be
mutually agreed upon by the BCD and TTU.
Letter of Agreement
Page 2
3. TTU agrees to expend the funds provided by BCD only in
connection with the establishment of the Northwest Texas Small
Business Development Center.
4. TTU agrees to maintain close coordination with BCD in
the estalishment of the Northwest Texas Small Business Develop-
ment Center. Wherever possible, the resources of the BCD shall
be used to extend the effectiveness of TTU's efforts. Further,
TTU agrees to consult and coordinate with the Chariman of the
BCD and its Director of Economic Development in the selection of
the Director of the Northwest Texas Small Business Development
Center. The Board of the Lubbock Sub -Center of the Northwest
Texas Small Business Development Center shall include represen-
tatives of the BCD, such representatives to be appointed by the
BCD pursuant to its rules and bylaws.
5. At the end of each three-month period throughout the
term hereof, TTU shall provide to BCD a regular report, which
report shall include, in addition to such other matters as may
be required by the BCD:
A. A narrative description of work undertaken and
accomplishments in regard to the work items covered in this
agreement; and
B. A financial report itemizing the expenditures
incurred in each work item category.
6. This agreement shall be for a term of one (1) year
from and after the date hereof, which shall be the effective
date of this agreement; provided, however, that BCD or TTU may
terminate this agreement at any time by thirty (30) days'
written notice. Following termination of this agreement for any
reason, TTU shall refund to BCD any unexpended or uncommitted
portions of the funds provided hereunder.
7. Attached hereto as Exhibit "A" and made a part hereof
for all purposes is a letter dated May 27, 1986, from Carl H.
Stem, Dean of the College of Business Administration at TTU.
Said letter sets forth a further description of the work to be
performed hereunder, and contains additional covenants and
agreements between BCD and TTU, all of which are incorporated in
this letter of agreement the same as if set forth verbatim at
this point.
8. BCD agrees to provide TTU access to BCD's technical
assistance and support services in order to assist TTU, to the
maximum extent possible, in carrying out its work described
herein.
Letter of Agreement
Page 3
9. This agreement may not be amended or otherwise modified
without the written consent of both BCD and TTU.
January 87
EXECUTED AND EFFECTIVE this 8th day of 6ecemtrer , 1986-.
APPROVED AS TO FORM:
BAKER, FIELD, CLIFFORD,
KRIE/R'/& WEBB INC.
BY W ;04i�
Wm. Mark Thompson
Attorneys for BCD
PP
AbVk 1NS\TO CONTENT
Rjcffard Greenber , Di ector
of Econo is DeveQopKent, BCD
Date: g
BOARD OF CITY OF DEVELOPMENT
By:_
Its
TEXAS TECH UNIN,EUITY
auro F. c4rzos, -rn.u.
resid nt
Date:
REVIEWED FOR FI$XAL YMPLICATIONS
Ghiet Fiscal U
Date: i
REVIEWED FOR FO -AND CONTENT
General Counsel
Date:
EXHIBIT "A"
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Texas Tech University
College of Business Administration/ Office of the Dean
Box 4320/Lubbock, Texas 79409-4320/(006) 742-3106
May 27, 1986
Mr. John Wilkerson, President
Lubbock Board of City Development
P.O. Box 5948
Lubbock, Texas 79417
Dear John:
By participating in the U.S. Small Business Administration's (SBA)
Small Business Development Center (SBDC) program, the College of Business
Administration at Texas Tech University and the Lubbock Board of City
Development will have the opportunity to multiply substantially their own
resources used in support of small business development in the city of
Lubbock. The U.S. SBA's SBDC program has been in operation for more than
ten years and currently operates successfully in more than forty states.
Texas has been allocated four SBDC charters, and Lubbock now has the oppor-
tunity to participate as a major service subcenter in the Texas Tech -
sponsored Northwest Texas Small Business Development Center network.
While Texas Tech University will be the contracting party with the
U.S. SBA, let me assure you and your BCD colleagues that the College of
Business Administration will work to see that the Lubbock subcenter opera-
tes as an integral part of the BCD's small business support and development
activities for the city of Lubbock. The integration of the SBDC with the
BCD's small business support program will occur in at least the following
ways:
1, the selection of the director of the Lubbock SBDC subcenter will
be closely coordinated by the College of Business Administration
with the executive director and president of the BCD;
2. the BCD will have direct representation on the board of the
Lubbock SBDC subcenter;
3. the SBDC's program of activities in support of small business will
be closely coordinated on a continuous basis with the small busi-
ness support and development activities of the BCD, and
"An Equal Opfwrdunify/Affirmafive Acdiun fnsdifudioti
-Mr. John Wilkerson
May 27, 1986
Page Two
4, the monies and in-kind support contributed by the BCD to the
budget of the Lubbock SBDC service subcenter will be used exclusi-
vely to support small business development within the city of
Lubbock.
It is the intent of the College of Business Administration to work as
closely and in as coordinated a way as possible in this matter with the BCD
to support the growth of small business in Lubbock and hence the economic
growth and development of our city. We look forward to working together
with you in advancing the economic future of our fine city!
Sincerely yours,
Carl H. Stem
Dean
CHS/cg
cc: President Lauro F. Cavazos
Dr. Donald R. Haragan,
Vice President for Academic Affairs and Research
9_C
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Northwest Texas Small Business Development Center System {NWTS60C}
AN OVERVIEW
According to a 1981 report from the U.S. Small Business Administration,
small businesses comprise 91% of all domestic firms and are an integral part
OF the economic processes. Also, small business failures continue to be
alarmingly high due to a critical lack of managerial skills. It is only
throu(J),management training and counseling that this failure rate can be
addressed. Through the joint efforts of the U.S. Small Business Administra-
tion and the University System an effective and efficient organization can be
built which combines the skills of each organization to develop and encourage
management expertise in small business owners/managers. The SBDC concept is a
particularly appropriate vehicle for disseminating knowledge about managerial
techniques.
Tile College of Business Administration, Texas Tech University, Lubbock,
Texas, will request matching funds of approximately $180,000.00 from the Small
Business Administration to organize and operate a Small Business Development
Center System in a ninety-six (96) county area of Northwest Texas which will
integrate the resources of educational institutions, the private, and public
sectors into a service delivery system to support the successful start-up and
growth of small businesses within the geographic limits of the system. All
service delivery subcenters will be encouraged to develop programs for special
emphasis groups, i.e., women, veterans and minorities.
The College of Business Administration, Texas Tech University (C08A/TTU)
has two primary objectives for the first year of a funded Northwest Texas
Small Business Development Center (NWTSBOC) system operation.
First: To recruit active.participation, funded or non -funded, of all
educational institutions in Northwest Texas that could serve as
S.fIOC subcenter service delivery units for small businesses in their
communities. Additionally, develop the administrative, opera-
tional, and budgetary procedures to initiate and sustain a service
delivery network of educational, private, and public resources
throughout NWTSBOC system.
Second: Organize a service delivery subcenter on, or adjacent to, the
Texas -Tech University campus which will provide direct service to
the small business community in the form of management assistance,
counseling, training, information transfer, and special programs as
needed.
The Small Business Development Center Program (SBDC)_
Small Business Development Centers, SROCs as they are called, work
through local university systems. They offer small business owners the chance
to hone their management skills by means of counseling and training programs.
-The program, under the general management of the Small Business
Administration, is a cooperative effort by universitites, the federal
government, state and local government, and the private sector to provide
general and specialized management and technical assistance to the small
business community.
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Started on a pilot basis at one university in December 1976, the program
now has 43 statewide operation SBDCs. T1 ie SBDCs are a major management
assistance delivery program of the SBA, with the program designed to establish
statewide networks for the delivery of up to date counseling, training and
technical assiaaisemucchthe
morelocal
sophisticatedbusiness
comprehensiveserved
thanbthehSmall
The SBDC program
Business Institute (SBI) program.
Services provided include:
Counseling
Training
Technology Innovation and Information Transfer.
Research and Publications
s data Special Projects -'ch a
ofuinformation bnecessary ase otoethe nt asurvival nd eofnce
small business.
Services are provided from:
SBOC Staff and SBOC Network
Faculty Members throughout the University System
Service Corps of Retired Executives (SCORE) and
Active Corps of Executives (ACE)
Technology Experts
Business Practitioners
Doctoral Candidates
People are actively seeking the kind of experience and. expertise that is
made available through the SBDC. It can provide a happy blend of working
between SCORE, for example, and the SBOC; or older volunteers and the SBOC.
For a balance, you get the fresh, young ideas, and expertise in research and
the older person who has the maturity and judgment that comes from long years
of experience in operating his or her own business, or working with a
corporation.
SBOCs will try to provide "hands-on" training so clients can actually do,
in a workshop, what they will have to do later on.
----Can the client(s) understand
apply ndthbusiness
t
concept/system areal
nd go
beyond that and practically theseconcept
situation?----
SBOC service delivery units are off -campus locations convenient to
business owners and potential business owners. The hours of operation will be
compatible with the local business community. Services are free or at a
nominal charge.
Until December 1983, SBOCs were statewide networks with one lead
institution in each state. However, due to the vast size of Texas, its
3
economic and business diversity, the state was divided into four major regions
for establishing and administering the program. ,
The four regions are:
NortFieast Texas Region
Northwest Texas Region
Gulf Coast Region
Southwest Texas Region
The Small Business Administration invited the College of Business
Administration, Texas Tech University to serve as the lead institution for
establishing a traditional (business related) SBDC program network for the
Northwest Texas region. Additionally, TTU would simultaneously establish a
Small Business service delivery subcenter adjacent to the campus.
The Northwest Texas SBDC network region includes: (Figure 1)
-- 96 Counties
-- 89,714 Square miles
-- 5 Metropolitan Statistical Areas (MSA)
-- Population 1,754,708
-- 7 Congressional Districts represented
Initially, institutions which participated in the Small Business
Institute (SBI) program during 1984-85 are being invited to participate in the
NWTSBDC. Participation by these units would accelerate the establishment of a
core of service delivery subcenters in each of the Metropolitan Statistical
Areas (MSA) within the NWTSBOC region and provide an excellent base for
expansion. All potential service delivery resources including Junior and
Community College systems, will be encouraged to participate in the program so
that every small business in the NWTSBDC region would have ready access to the
services of a.local center. (Figure 2)
Currently, four institutions have submitted proposals for participation
in the NWTSBDC system and operating a SBDC service delivery subcenter.
Lead Institution and Service Delivery SubCenter
Texas Tech University, Lubbock
Service Delivery SubCenter
West Texas State University, Canyon
University of Texas - Permian Basin, Odessa
Abilene Christian University, Abilene
4
The Small Business Administration provides a grant sponsorship for the
SBOC program. SBA 50% cash and participants 50% (25% cash - 25% in-kind).
Current status of the Northwest Texas SBOC system proposal --- submitted
to the Small Business Administration on June 14, 1985. A reply, dated
December 1985, from the SBA central office, Washington, D.C. requested that
TTU resubmit the proposal.to include an enrichment of the programs portion in
the "Statement of Work". The general reply was very encouraging and suggested
that the revised proposal should be processed to anticipate a September 30,
1986 funded start-up date.
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Summar
Texas Tech University
Service Delivery Subcenter-Lubbock
NWTSBDC
The Northwest Texas SBDC Program Control Center will plan, coordinate and
administer the total NWTSBDC program, and the Texas Tech University Service
Delivery Subcenterwill provide direct services to the Small Business
Community in Lubbock and fIEteen adjacent counties corresponding to the South
Plains Association of Governments' (SPAG) area of responsibility. These two
the same resource base: personnel, facilities,
major SBDC activities will use t
equipment and supplies. it is estimated that the resources common to both
acttvities would be allocated on an equal basis during the start-up phase and
Into the second year of operation. Therefore, these activities are combined
for developing and managing the budget.
Budget
The Small Business Administration provides a grant sponsorship for the SBDC
program. SRA 50% case and participants 50% (25% cash - 25% in kind).
Estimated first-year budget requirements for the TTU/Lubbock Service Delivery
Subcenter are:
TTU/Lubbock Match (50X)
Object Class SBA
Categories Funds (50X) Cash (25X) In-kind (257:)
Personnel $ 36,000 $ 20,000 --
Fringe Benefits 9,048 5,000
Travel 1,600 -
Equipment -- -- $ 9,826
-- ,750
Supplies -- 1 1,851
Other (Facilities) --
TOTAL $ 46,048 $ 25,000 $ 15,427
Note: This schedule is extracted from the consolidated NWTSBDC budget and
does not include the contractual budget for other participating
subcenters. Also, in-kind matching requirements may be met by TTU
waiving indirect costs charged to the SBA. In this case $6,221 waived
indirect costs would increase the $15,427 to $21,648 and complete the
TTU 50% matching share.
These funding requirements are an estimated minimum needed to initiate the
NWTSBDC program and are based on the assumption that in-kind match elements or
equivalent amounts in cash will be available.
Services
The TTU/Lubbock Service Delivery Subcenter will provide direct services to the
designated small business community in the form of management assistance, one-
to-one counseling, training (seminars and workshops), information transfer and
special programs as needed. These, and additional activities, will be made
available, from an off -campus location during normal working hours, to both
existing and potential small businesses to enhance enterprise development and
growth. Outreach programs will be developed to support small businesses in
adjacent counties.
4-86