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2 ORDINANCE NO. 17.396 147
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6 AN ORDINANCE AUTHORIZING A SOLE SOURCE
7 CONTRACT BETWEEN THE CITY OF LITTLE
8 ROCK AND PHILANDER SMITH COLLEGE CDC
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10 TO CREATE A SMALL BUSINESS INCUBATOR
11 FOR WOMEN /MINORITY BUSINESS
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13 ENTERPRISES (W /MBE).
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15 WHEREAS, the support for the small business incubator is derived from the
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17 FUTURE- Little Rock Economic Development Task Force; and
18 WHEREAS, Philander Smith College CDC will develop a location (vacant or
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29 under utilized building) so that it becomes a place to provide management, business and
21 technical support programs to developing businesses; and
22 WHEREAS, the incubator will be initially located within the portion of Central
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24 Little Rock that is bounded on the South by Roosevelt Road, on the North by Interstate
25 630, on the East by hnterstate 30, and on the West by Pine Street; and
26 WHEREAS, Philander Smith College, founded in 1877, is a small privately
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28 supported, historically black, four -year liberal arts college, related to Ministry of the
29 United Methodist Church. Philander is the first UNCF college to be fully accredited;
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31 and
32 WHEREAS, Philander Smith College's mission is to access higher education
33 to individuals who are, or have the potential to be, academically talented regardless of
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35 their social, economic, and educational background.
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NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF
DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS:
SECTION 1. The City Manager is authorized to enter into a sole source 148
contract between the City of Little Rock and Philander Smith College CDC to create
a Small Business Incubator for Women/Minority Business Enterprises (W/MBE).
SECTION 2. Funding for this project, which will be in two phases, is available
from the FUTURE- Little Rock Special Project.
PASSED
ATTEST:
February 4, 1997
ROBBIE HANCOCK
CITY CLERK
APPROVED AS TO FORM:
THOMAS M. CARPENTER
CITY ATTORNEY
APPROVED:
k
JI AILEY
MAYOR
Little Rock
Contract No.
Philander Smith Community Development
Corporation Contract for Services
M M M M
1.49
The City of Little Rock, Arkansas ( "City ") a municipal corporation organized under the
laws of the state of Arkansas, and Philander Smith College Community Development Corporation
( "Contractor ") enter into this contract this 4th day of February , 1997.
WITNESSETH:
WHEREAS, the City desires to contract with contractor to implement the development
of the City's Small Business Incubator Program. Whereas; this contract will occur in two phases.
At the end of Phase I and II, the parties will negotiate the terms and conditions of Phase III,
which will include identifying the businesses that will participate in the program. Phase III will
also include Management and Operations, among other things, of the facilities and other related
activities.
NOW, THEREFORE, BE IT AGREED BY THE PARTIES AS FOLLOWS:
ARTICLE 1. CONTRACT DOCUMENTS.
The Contract Documents consist of this contract and Exhibit A. The provisions of Exhibit
A are incorporated herein by reference.
ARTICLE 2. CONTRACT TERM.
The term of this contract is from March 1. 1997 to August 29. 1997 <See Section I of
the Exhibit >. The contract term may be extended by mutual agreement of the parties.
ARTICLE 3. SERVICES PROVIDED.
As consideration for the City funds provided, the Contractor will plan with intent to
implement an incubator program that is both a process and an environment to support companies that
meet incubator entry participation.
ARTICLE 4. CONTRACT AMOUNT.
The City will pay the contractor an amount not to exceed forty-five thousand dollars
($45,000) for the Contract Term for the services provided. in Exhibit A, Sections I -VIII.
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ARTICLE 9. INDEPENDENT CONTRACTOR.
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Contractor is not acting herein as agent or employee of the City, but shall, at all times, and
in all respects, have the rights and liabilities of an independent contractor.
ARTICLE 10. INDEMNITY.
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Contractor agrees that it shall indemnify and save harmless the City, their officers, agents and
employees from:
1) any claims or losses for services rendered by any subcontractor, person or firm performing
or supplying services, materials or supplies in connection with the performance of the
contract;
2) any claims or losses resulting to any person or firm injured or damaged by the erroneous
or negligent acts, including disregard of federal and state statutes or regulations, by the
Contractor, its officers, employees or subcontractors in the performance of the contract.
ARTICLE 11. WAIVER OF INTELLECTUAL PROPERTY RIGHTS.
Contractor consents to the City's reproduction and use of Contractor's work in any form or
medium, including photographic images, and to the City's exploitation of said reproductions in any
manner it sees fit.
ARTICLE 12. CONTACT PERSONS.
Section 12.01. Contact Person for the City.
Lottie Keaton
Minority Economic Development Administrator
City Hall, Rm 203
500 West Markham
Little Rock, Arkansas 72201
(501) 371 -4510
Section 12.02. Contact Persons for the Contractor
Dr. Myer Titus
President, Philander Smith College
812 West 13th Street
Little Rock, AR 72202
(501) 370 -5275
ARTICLE 13. MODIFICATION.
Any modifications to this contract agreement, including modifications to the services
described in the attached referenced proposal, must be in writing, signed by both parties.
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ARTICLE 5. PAYMENT METHOD
Payments to Philander Smith CDC will be made seven (7) days after the submission of a
progress report. The progress report shall be submitted to the City by the second Tuesday of each
month before 12:00 p.m., for approval, in order for payment to be made promptly. Payments of two
thousand dollars ($2,000) are to be paid in monthly installments for five (5) months, beginning thirty
(30) days after the commencement of this Agreement. The remaining Agreement balance of thirty-
five thousand dollars ($35,000) will be paid up to thirty (30) days after the completion of the services
to be rendered under this Agreement. Invoices shall be submitted to:
Cy Carney 151
Assistant City Manager
City Hall, Rm. 203
500 W. Markham
Little Rock, AR 72201
ARTICLE 6. FINANCIAL REPORTING REQUIREMENTS.
Contractor agrees to supply financial reports to the City and to maintain adequate
bookkeeping and documentation to substantiate those reports. Contractor will obtain a receipt for
every expenditure and keep such receipts on file for three (3) years. Contractor shall submit quarterly
reports of all expenditures beginning with the quarter in which monies are received and continuing
until all monies are expended or returned to the City. The type or style of bookkeeping shall be
adequate to track the receipt and expenditure of City monies separately from other monies in a form
acceptable to the City Finance Director. Contractor grants the City a right of entry to its business
premises during regular business hours for the purpose of inspecting said financial reports, books, and
related documentation. The City agrees to provide Contractor twelve (12) hour's notice of the
intended visit.
ARTICLE 7. NON - DISCRIMINATION.
Contractor agrees to comply with all applicable federal and state laws regarding non-
discrimination, and specifically agrees not to unlawfully discriminate against any participant because
of race, creed, religion, disability, sex or national origin. —
ARTICLE S. USE OF FUNDS FOR POLITICAL AND SECTARIAN ACTIVITIES
PROHIBITED.
Contractor agrees that it shall not use any of the funds provided under this Contract for
political or sectarian purposes.
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ARTICLE 14. DUTY TO REPORT PROBLEMS IN ADMINISTRATION AND REMEDY
Section 14.01. Duty to Report Problems in Administration. Contractor shall report to
contact person fisted in Article 12 any difficulties in administration which affect a material provision
of this contract. Material means "an important or essential term of the agreement." A material
change would be one that requires the Contractor to provide greater or fewer services than called for
in the original agreement.
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Section 14.02. Remedy. Upon notification by the Contractor of a problem in administration,
the City and the Contractor will work together to develop a reasonable solution to the problem. If
contract modifications are required, they will be made as provided in Article 13 above.
ARTICLE 15. TERMINATION.
Section 15.01. Termination. This agreement may be terminated, at any time, by either party
by giving thirty days written notice to the contact person listed in Article 12.
Section 15.02. Damages. Upon notification by the City to the Contractor of a breach and
termination of contract, the Contractor shall return monies held by it but unexpended to the City. The
City will reimburse the Contractor for actual expenses incurred or accrued up to the date of
termination. Violation of Article 7 or 8 shall require repayment of any funds expended under the
Contract.
ARTICLE 16. CITY PROPERTY.
Capitol purchases (equipment and fixtures such as, but not limited to, computers, printers,
desks, file cabinets) purchased with City funds are the property of the City. The City must be
informed immediately when a capital purchase is received by the Contractor so that property control
tags may be affixed and the assets entered into the fixed asset control system. Contact Ms. Linda
Baer at 371 -6833 to report capital equipment purchases.
Capital equipment purchased with City funds shall be returned to the City at the end of the
contract term if the contract is not renewed. Contractor agrees to peaceably surrender said items
upon request by the City at the location designated by the City.
ARTICLE 17. MISCELLANEOUS.
Section 17.01. This Agreement is governed by the laws of the State of Arkansas.
Section 17.02. The Contractor agrees to comply with the requirements of the Americans with
Disabilities Act and applicable employment laws and to require such compliance in contractual
agreements with subcontractors.
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Section 17.03. The officials who executed this Agreement hereby represent and warrant that
they have full and complete authority to act on behalf of the City and the Contractor and that by their
signatures below, the terms and provisions hereof constitute valid and enforceable obligations of each.
Section 17.04. This Agreement shall be executed in the original, and any number of executed
copies. Any copy of this Agreement so executed shall be deemed an original and shall be deemed
authentic for any other use.
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WHEREFORE, the parties have hereunto affixed their hands and seals this day of
February , 1997.
CITY OF LITTLE ROCK ARKANSAS PHILANDER
COMMUNITY
CORPORATION
Charles Nickerson Dr. Myer Titus
City Manager President
ATTEST:
Robbie Hancock
City Clerk
APPROVED:
Thomas M. Carpenter
City Attorney
SMITH COLLEGE
DEVELOPMENT
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EXHIBIT A
154
This correspondence is to inform you that the City of Little Rock, Arkansas (the "City ")
agrees to hire Philander Smith College Community Development Corporation ("Philander Smith
CDC ") to implement the two (2) phases of the development of the City's Small Business Incubator
Program. It is the City's understanding that Philander Smith CDC will provide the Developmental
and Organizational design conducted in two phases to identify the specific kinds of businesses which
will be involved in the project. Phase I and Phase II of this process will include the following:
Section I. Term. The term of this Agreement is from March 1, 1997 to August 29, 1997.
Three (3) months shall be allocated to Phase I of this project and three (3) months shall be allocated
to Phase II of the project.
Section H. Consideration. For and in consideration of the covenants set forth below, the
City agrees to pay Philander Smith CDC an amount not to exceed forty-five thousand dollars
($45,000) to outline the development and operation of the Small Business Incubator Program for the
City of Little Rock. This Agreement consists of Phase I and Phase II of this project.
Section M. Location. The Small Business Incubator project will be located within the
portion of Central Little Rock that is bounded on the South of Roosevelt Road, on the North by
Interstate 630, on the East by Interstate 30, and on the West by Pine Street. This area is the same
as the target area chosen for the Philander Smith Community Development Corporation.
Section IV.
PHASE I
The Philander Smith CDC will agree to perform the Development Phase < Phase I> that will include:
Commitment -- The Philander Smith CDC will identify sponsors who will set the
measures by which the project will be judged. The sponsors understand the investment
(money, land, and other resources) is needed in the early stages and needed over time,
and their respective magnitudes.
' Resources — The Philander Smith CDC will determine if adequate cash flow analyses
have been performed and financing have been secured to construct an incubator
program. A building can be secured which lends itself to the needs of early -stage
companies, i.e., which can be modularized; can accommodate a variety of uses; has
core utilities and infrastructure for the first year operation of the incubator.
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* Expertise — The Philander Smith CDC will serve as manager of the small businesses
in the Incubator. Philander Smith CDC Management should select a Project Manager
who understands the role of the Small Business Incubator ( "SBP') within the context
of other local and regional economic development projects. A team experienced with 15 S
SBI development will lead or coach the formulation of the Business Plan for the
businesses.
* General Budget for Incubator. The Philander Smith CDC will develop a general
operational budget and submit to the City for review and support. The budget should
include the following:
- Financial statements: balance sheets, income statements, and cash
flow and sources and uses of funds statements.
- Specialized software for preparing financial statements and budgets.
* Marketing Surveys. The Philander Smith CDC will develop a survey for determining
the size (geographic and by population) of the market area for incubation including:
I . Prospective customers in the market area.
2. Seasonal fluctuations or other variables to determine the level of sales
or services for small businesses in the target area.
* Technology. The Philander Smith CDC will provide computer training on:
I. Personal computers
2. Xerography
3. Computerized information systems to control inventory, sales, billing, and
other activities
4. Selection of hardware and software
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Section V.
PHASE II
The Philander Smith CDC will serve as the Facilitator for Operational and Managerial Phase
< Phase II> of activities that will include:
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* Mana eg ment. The Philander Smith CDC will serve as manager of small businesses in
the Incubator. Such management will involve planning, organizing, leading, and
controlling the work of the small businesses in order to achieve stated goals.
Management Trainees. The Philander Smith CDC will provide students with career -
related skills to assist in operating the small businesses.
1. Internships
2. CO -OP Program
3. Part- time/Full -time Employees
The Philander Smith CDC work will involve the use of technical skills, conceptual skills, and
interpersonal skills.
Technical Skills -- The Philander Smith CDC will provide procedures, techniques,
and knowledge, i.e., accounting, computer skills, budgeting, market surveys, and
inventory planning and controlling for small businesses.
Conceptual Skills -- The Philander Smith CDC will help to coordinate and integrate
the small businesses' interests and activities, such as viewing the business as a whole,
understanding how its parts depend on one another, and anticipate how a change in
any of its parts will affect the whole.
Interpersonal Skills -- The Philander Smith CDC will use its expertise to work with,
understand, and motivate other people, as individuals, or in groups for small
businesses.
Section VI. Small Business Development Seminars. The following sessions will be
introduced in Phases I and II and conducted in Phase III. The sessions will pertain to small business
start up, operation, and survival:
1. Selecting the Right Business
2. Writing a Business Plan
3. Public Relations
4. Accounting/Payroll
5. Forecasting Sales and Budgets
6. Avoiding the Pitfalls of Business
7. Self Improvement
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8.
Money Management
9.
Financing alternatives
10.
Advertising
11.
Managing People
12.
Business Policies
13.
Locating Sources of Supplies
14.
Insurance requirements
15.
Self Evaluation
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Section VII. Other Duties as Directed. The Philander Smith CDC is willing to work with
the City of Little Rock in making this project a success. Therefore, The Philander Smith CDC
welcomes other ideas from the City on how to implement the Small Business Incubator Program.
Section VIII. At the end of the contract period, Philander Smith CDC will provide the City
with a report containing the following information:
1. How many small businesses participated in the Small Business Incubator
Program and the names of such businesses.
2. The work that each small business conducted as a part of the project.
3. The success of each small business in relocating in the community.
4. Suggestions regarding the development of the Small Business Incubator
Program.
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