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Report regarding adopting a resolution to approve a Memorandum of Understanding with the County of San Mateo for a Small Business and Entrepreneurship Center in South San Francisco. (Ernesto Lucero, Economic Development Coordinator, and Nell Selander, Deputy Director, Economic and Community Development Department)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution approving a Memorandum of Understanding with the County of San Mateo defining a partnership and financial relationship for a Small Business and Entrepreneurship Center in South San Francisco.
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BACKGROUND
On February 23, 2021, the City Council held a study session to explore and discuss two Economic Mobility initiatives: a Partnership for Workforce Development and a Small Business and Entrepreneurship Center in South San Francisco. Council directed staff to proceed with continuing to implement both programs.
As the City continues to establish the scope of these two programs, San Mateo County staff were preparing for a similar presentation to the County Board of Supervisors. City and County staff discussed the possibility of collaborating on specifically the Small Business and Entrepreneurship Center in South San Francisco. On March 9, 2021, the San Mateo County Board of Supervisors approved $200,000 for a North County Small Business and Entrepreneurship Resource Center. At the Board’s meeting, County staff proposed this Center be located in South San Francisco and be coordinated with the efforts of the City.
DISCUSSION
Staff issued a Request for Qualifications (RFQ) on February 3, 2021 for a new partnership to develop and implement a Small Business and Entrepreneurship Center in South San Francisco. The RFQ solicited key partners for enhancing small business support and entrepreneurship resources to South San Francisco community members in a post-COVID economy. Specifically, the Center would be focused on partnering with firms, organizations, and business service providers that have proven experience in assisting small businesses and entrepreneurs with targeted technical assistance, accessing capital, and overall support with post-COVID business recovery and long term sustainability.
Recommended Small Business & Entrepreneurship Center Partner
Submittals were reviewed and scored by Economic & Community Development staff (i.e., the Director and Economic Development Coordinator), the County’s Deputy County Manager, and a representative of the San Mateo County Economic Development Association (SAMCEDA). Renaissance Entrepreneurship Center (Renaissance) was determined to be the most qualified partner for this program. Staff from both the City and County continue to meet on refining a scope and budget with Renaissance to present to Council during a future budget appropriation, likely in early April.
Memorandum of Understanding with the County of San Mateo
City and County have negotiated a Memorandum of Understanding (MOU) to formalize a partnership for the Small Business and Entrepreneurship Center in South San Francisco. As previously discussed, the County Board of Supervisors approved $200,000 for such a center, providing resources to small businesses and entrepreneurs in north San Mateo County.
The draft MOU for Council consideration, included as Exhibit A to the Resolution associated with this staff report, provides for:
• A one-year term;
• A fifty-fifty split of all hard costs associated with the Center;
• The City entering into a contract with the selected partner, likely Renaissance;
• The County funding the first phase of that contract to provide rapid response services to small businesses and entrepreneurs, expected to be in the range of $75,000;
• The City funding the second phase of that contract to design a sustainable long-term program and financing strategy, expected to be in the range of $50,000;
• With services made available to businesses with a business license from or an entrepreneur who lives in a north County jurisdiction, with a preference for those from South San Francisco; and
• With an agreement that County and City staff will meet monthly to assess program success and make adjustments, both to funding and programming, to best implement Council and Board of Supervisor direction.
As scoping of the Center continues, every effort will be made to ensure South San Francisco dollars will go to South San Francisco community members. Priority for services to South San Francisco small businesses and residents is identified in the MOU. Staff will also ensure this priority is identified in contract negotiations with Renaissance when developing the scope of work. As both the City and County will want metrics of community members using the services, the City will be able ensure this priority with data as the Center begins to be implemented.
FISCAL IMPACT
At the Council’s study session on February 23, 2021, the City Council approved in concept the two Economic Mobility initiatives, including a conceptual budget of approximately $1 million for both components (i.e., workforce development and small business & entrepreneurial support). The $1 million budget includes program design, program implementation (including partner contracts), and funding to cover the first two years of office and/or classroom space rentals, furnishings, and equipment - and it will provide seed funding to leverage potential Federal, State, corporate, and other grant funding.
Specifically for the Small Business and Entrepreneurship as discussed in this report, staff are working with the recommended partner, Renaissance, to fully scope a contract and negotiate their fees. In April 2021, staff will return to Council for budget appropriations and any necessary contract approvals.
CONCLUSION
This report seeks Council consideration on a resolution approving an MOU with the County for the Small Business and Entrepreneurship Center. In April 2021, staff will return to Council for budget appropriations and any necessary contract approvals to begin formal implementation of the program.
Attachments:
1. PowerPoint Presentation