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Agenda 09/08/2015 Item #16F7Proposed Agenda Changes Board of County Commissioners Meeting September 8, 2015 Withdraw Item IIC: Recommendation to approve the award of RFP 15 -6424, Management Services Contract for the Collier Area Transit (CAT) Fixed Route and Paratransit Programs, to Medical Transportation Management, Inc. dba Southeast MTM, Inc. (MTM) for Scheduling and Dispatch Services and to MV Transportation, Inc. for Transit Operation Services in the aggregate amount of $6,439,091 for FY16. (Staffs request/Intent to Protest) Move Item 16E13 to Item 11G: Recommendation to ratify administratively approved work order modifications and /or contract change orders /Amendments that do not exceed ten percent (10 %) of the current Board approved aggregate amount or twenty percent (20 %) of the current Board approved schedule (number of days); approve modifications to the current Board approved performance schedules; and approve surplus disposal and revenue disbursement and other items as determined by the County Manager or designee. (Commissioner Henning's request) Move Item 16F5 to Item I IH: Recommendation to approve the FY 2016 Agreement between the Partnership for Collier's Future Economy, Inc. ( "PCFE ") and the Board of County Commissioners in continued support of the established public - private partnership designed to advance our community's business and economic development efforts. (Commissioner Taylor's request) Move Item 16F6 to Item 11I: Recommendation to approve the Third Amendment to the Agreement between Economic Incubators, Inc., the Administrative Entity for the Business Accelerator Project, and the Board of County Commissioners. (Commissioner Taylor's request) Move Item 16F7 to Item I U: Recommendation to approve a successor Agreement between Economic Incubators, Inc. , the Administrative Entity for the Business Accelerator Project, and the Board of County Commissioners for Fiscal Year 2016 and approve necessary budget amendments. (Commissioner Taylor's request) Move Item 16F8 to Item IIK: Recommendation to approve the Fiscal Year 2016 Agreement between the Southwest Florida Economic Development Alliance, Inc. and the Board of County Commissioners. (Commissioner Taylor's request) Move Item 16E10 to Item 11L: Recommendation to award ITB 15 -6474, "Medical Director (Part A) for Collier County and Employment Physicals & Drug Testing (Part B)" to Advance Medical Center, LLC. (Commissioner Henning's request) Move Item 16J4 to Item 13A: To record in the minutes of the Board of County Commissioners, the check number (or other payment method), amount, payee, and purpose for which the reference disbursements were drawn for the periods between July 1 and August 26, 2015 pursuant to Florida Statute 136.06. (Commissioner Fiala's request) 9/8/2015 16.F.7. EXECUTIVE SUMMARY Recommendation to approve a successor Agreement between Economic Incubators, Inc., the Administrative Entity for the Business Accelerator Project, and the Board of County Commissioners for Fiscal Year 2016 and approve necessary budget amendments. OBJECTIVE: That the Board of County Commissioners (Board) approves an Agreement between Collier County, Florida and Economic Incubators, Inc. ( "EII" or "Administrative Entity") for Fiscal Year 2016 aligned with BCC direction provided on July 7, 2015, Agenda Iteml 1. E., as the County's continued commitment to the Soft Landing Business Accelerator Project. CONSIDERATIONS: On November 18, 2014, Agenda Item 11 C, the Board of County Commissioners approved an agreement between the County and EII (the "Agreement ") designating EII as the Administrative Entity for the Accelerator Project which was funded by a State DEO Grant. The First Amendment to the EII Agreement was approved on March 10, 2015, Agenda Item 11.17, and a Second Amendment was approved on June 23, 2015, Agenda Item 11. J. Both amendments adjusted the budget and deliverables to reflect the actual implementation schedules and progress of the Project, including establishing a Revenue Reuse Plan. A Third Amendment to the Fiscal Year 2015 Agreement between the County and EII appears as a separate item on this meeting agenda. This proposed Third Amendment redefines the Agreement's deliverable schedules and metrics as a result of the unanticipated scale back of the program resulting from the Governor's veto of the Legislature's authorized continuation funding. In response to the veto, the Board approved a staff proposed modification to the business accelerator project funding plan that maintains the operation of the Western Accelerator at a scaled back level, retaining essential functionality with downsized operational and equipment costs. The successor agreement with Ell for administrative services and operational oversight reflects the down sized scope of services and corresponding schedule of project deliverables. This new agreement marks the planned transition of the management of EII from the Southwest Florida Work Force Development Board to an independent Florida, not for profit corporation, pending 501 (C) (3) designation, lead by a newly elected EII Board of Directors. The newly elected Board of Directors includes the following individuals: Dolph Von Arx, Chair; Fred Pezeshkan, Vice - Chair; Richard Grant, Secretary; Dudley Goodlette, Treasurer; J. P. Gamier; Joe Patemo; Steve Wheeler; Carolyn Rambosk; Louis Traina; George Ahern. As a matter of disclosure, Mr. Pezeshkan is a member of Kraft Office Center LLC which is the Landlord of the Accelerator and Mr. Grant is counsel for Kraft Office Center LLC. The 5 year lease was approved by the BCC on March 10, 2015, Item I IE. Exhibit J, of this Agreement, Project Purchasing Standards, contains a Code of Conduct which requires disclosure and completion of Conflict of Interest forms, and non - participation in votes if a conflict of interest is involved. FISCAL IMPACT: Consistent with prior Board authorization, this Agreement provides county funding in an amount not to exceed Five Hundred Eighty Nine Thousand Five Hundred Dollars ($589,500.00) for reimbursement/payment of Accelerator project expenditures in the absence of DEO funding beginning September 15, 2015 through the balance of FYI 6. Of that amount, the EII reimbursement under the proposed contract is $484,000 and the direct payment by the County for rent, property and liability insurance is $105,500. Existing funding within Accelerator Grant/Project 33388 in Economic Development Fund (007) and County Manager Grant Match Fund (714) is $430,000. Planned incremental program funding of Packet Page -2610- 9/8/2015 16.F.7. $100,000 is presently included in the Tentative FY 16 Economic Development Fund (007) budget. An additional $59,500 from Economic Development Fund (007) reserves will also be required. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan. LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote. — JAB RECOMMENDATION: That the Board of County Commissioners approves the Agreement between Collier County and Economic Incubators, Inc. for Fiscal Year 2016 and approves any necessary budget amendments. Prepared by: Bruce Register, Office of Business & Economic Development Attachments: Agreement between Collier County, Florida and Economic Incubators, Inc. for Fiscal Year 2016 Agenda Item 11 E, July 7, 2015 BCC Meeting Agenda Item 11 A, May 13, 2014 BCC Meeting Soft Landing Accelerator Business Plan Packet Page -2611- 9/8/2015 16. F.7. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.F.16.F.7. Item Summary: Recommendation to approve a successor Agreement between Economic Incubators, Inc. , the Administrative Entity for the Business Accelerator Project, and the Board of County Commissioners for Fiscal Year 2016 and approve necessary budget amendments. Meeting Date: 9/8/2015 Prepared By Name: JenniferLeslie Title: Administrative Assistant, Office of Business & Economic Development 8/31/2015 1:23:44 PM Submitted by Title: Division Director - Business & Econ Dev, Office of Business & Economic Development Name: RegisterBruce 8/31/2015 1:23:45 PM Approved By Name: BelpedioJennifer Title: Assistant County Attorney, CAO General Services Date: 8/31/2015 1:49:03 PM Name: Joshua Thomas Title: Grants Support Specialist, Grants Management Office Date: 8/31/2015 1:55:27 PM Name: KlatzkowJeff Title: County Attorney, Date: 9/1/2015 10:32:02 AM Name: StanleyTherese Title: Manager - Grants Compliance, Grants Management Office Date: 9/2/2015 2:' )6:44 PM Packet Page -2612- Name: FinnEd 9/8/2015 16. F. 7. Title: Management/Budget Analyst, Senior, Office of Management & Budget Date: 9/2/2015 4:59:33 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 9/2/2015 5:21:47 PM Packet Page -2613- 9/8/2015 16.F.7. AGREEMENT BETWEEN COLLIER COUNTY, FLORIDA AND ECONOMIC INCUBATORS, INC. This AGREEMENT is made and entered into this 8`h day of S e p t e m b e r, 2015, by and between Collier County, a political subdivision of the State of Florida (the "COUNTY" or "Fiscal Entity ") and Economic Incubators, Inc. ( "EII" or "Administrative Entity "), a Florida not - for -profit corporation. WITNESSETH WHEREAS, on November 18, 2014, Agenda Item 1I.C, the Board of County Commissioners ( "BCC ") approved an agreement between the County and EII (the "Agreement ") designating EII as the Administrative Entity for the Collier County Soft Landing Accelerator/Incubator Development Strategy ( "Accelerator Project "), effective October 1, 2014 through September 16, 2015; WHEREAS, on March 10, 2015, Agenda Item I LF the Board of County Commissioners approved the First Amendment to the Agreement between the County and EII, effective March 10, 2015; WHEREAS, on April 28, 2015, Agenda Item I LC (formerly 16.F.3), the Board of County Commissioners amended the Department of Economic Opportunity (the "DEO ") Agreement funding the Accelerator Project ( "Amended DEO Agreement "); WHEREAS, on June 23, 2015, Agenda Item 113 (formerly 16.17.12), the Board of County Commissioners approved the Second Amendment to the Agreement between the County and EII; WHEREAS, on June 23, 2015, the Governor vetoed the extension of Grant funding for the Accelerator Project which materially impacted the Project and ended DEO funding; WHEREAS, the COUNTY has determined that it is in the best interests of Collier County to continue to support the Accelerator Project efforts which support further the goals and objectives identified in the County's Business and Economic Development Business Plan; and WHEREAS, the parties wish to enter into this Agreement to accommodate the loss of State funding and to continue the COUNTY's continued support and funding of the Accelerator Project beginning September 16, 2015 thru FY 2016. NOW, THEREFORE, in consideration of the mutual covenants, promises and representations contained herein, and other good and valuable consideration, the COUNTY and EII agree as follows. ARTICLE I SCOPE OF SERVICES EIl shall administer the Accelerator Project by performing the Roles and Responsibilities described in Exhibit "G" and providing the services and activities described in Exhibit "A ", Scope of Services, both Exhibits A and G are attached hereto and by reference made a part hereof. ARTICLE II TERM OF AGREEMENT This Agreement shall be effective upon execution by both parties and shall cover services provided Packet Page -2614 - C',q 9/8/2015 16. F.7. from September 16, 2015, until September 30, 2016, unless otherwise terminated in accordance with this Agreement or extended by mutual written Agreement of the parties. ARTICLE III CONSIDERATION AND LIMITATION For its performance under this Agreement, EII will receive funds from the COUNTY in an amount not to exceed Four hundred Eighty -Four Thousand Dollars ($484,000.00). It is intended that the services performed by EII shall be on a cost reimbursement methodology for actual eligible expenditures categorized in the attached Exhibit `B 1 ". Actual expenditures eligible as a basis for reimbursement can and shall include salaries and employee benefits, costs for EII personnel performing services described in Exhibit "A ", as well as EII costs of operating as a Soft Landing Accelerator. EII shall be entitled to compensation upon BCC approval of the Agreement, distributed as requests for reimbursement are submitted for reimbursement of eligible expenses approved by the County and Clerk of Court, beginning September 16, 2015. All invoices shall be submitted in accordance with COUNTY procedures and in a form acceptable to the COUNTY and EII as generally outlined in Exhibit 'B ", Method of Payment and Budget Detail for Services and Exhibit "C ", Program Performance Report, attached hereto and by reference made a part hereof. ARTICLE IV PAYMENT AND REPORTING REQUIREMENTS For its performance under this Agreement, County shall reimburse to EII actual eligible expenditures categorized in the attached Exhibit B 1 upon submittal of monthly reports and completion of. the deliverables referenced in Exhibit A, Scope of Services. All payment requests by Ell to the COUNTY shall be submitted with a completed Program Performance Report and Exhibit "D" Payment Record Chart in a form acceptable to the COUNTY and EH, as generally outlined and set forth in Exhibit "C" attached hereto and by reference made a part hereof. Payments to EII will be made as soon as possible but, in all circumstances within Forty Five (45) days of requests, in compliance with the Florida Prompt Payment Act, therefore, in accordance with the procedures specified by Exhibit "B" Method of Payment and Budget Detail for Services. If the COUNTY determines, through its inspection or review that EH has performed, or is performing less than the total agreed upon services, then the COUNTY shall notify EII in writing specifying those services which it alleges have not been performed or fully performed and Ell shall have thirty (30) days from receipt thereof to submit a then current Program Performance Report which shall address such allegations in detail and/or shall meet with the appropriate representatives of the COUNTY to discuss resolution thereof and cure or remedy any services not fully performed, and upon failure thereof, the COUNTY shall be entitled to reduce payment otherwise due for such services not fully performed on a pro- rata basis. Performance will be measured by the defined Scope of Services set out in Exhibit "A" or a percentage of defined service goals completed and by such other standards as the parties may agree upon in writing. E I I shall submit its first payment request, a n d Program Performance Report on or before October 15, 2015, and its second request on or before November 15, 2015. EH shall submit its subsequent Program Performance Reports monthly on or before the 15`h day of the in on t h and year -end analysis, and any other required reports shall be submitted within forty five (45) days of the expiration of the tern of this Agreement, or earlier termination of this Agreement. If EII fails to comply with the requirements of this Article, the COUNTY may refuse to honor or be liable for payment of any late request for payment. ARTICLE V 2 Packet Page -2615 - 6 9/8/2015 16.F.7. MAINTENANCE OF RECORDS EII shall maintain such financial records and accounts, including invoices, purchase orders and backup materials or documents as are deemed necessary to assure a proper accounting for all COUNTY funds for which the COUNTY is obligated to reimburse EII under the terms of this Agreement. The aforesaid records and accounts shall be made available for inspection purposes at reasonable times and upon reasonable notice during normal business hours and as often as the COUNTY may deem necessary to verify reimbursements and any other financial records or matters covered by this Agreement. Notwithstanding the aforementioned, financial records and accounts related to Business Income and Private Contributions are not considered a part of the records that must to be provided as delineated above. At the COUNTY's request a COUNTY representative may review the Business Income and Private Contributions records. EII shall also provide timely and reasonable access to EII's Executive Director at times convenient for the COUNTY for the purpose of questions or explanations related to such records and accounts. EII shall retain for such inspection all of its records and supporting documentation applicable to this Agreement for a period of five (5) State of Florida fiscal years from the date COUNTY'S Grant Agreement SL007, with the Florida Department of Economic Opportunity ( "DEO "), audit report is issued or five (5) State of Florida fiscal years after all reporting requirements are satisfied between COUNTY and the DEO and final payments have been received, whichever is longer. In addition if any litigation, claim, negotiation, audit, or other action involving the records has been started prior to expiration of the controlling records retention period as identified above, the records shall be retained until completion of the action and resolution of all issues which arise from it, or until the end of the controlling period as identified above, whichever is longer. In addition, EII shall: (a) Keep and maintain public records that ordinarily and necessarily would be required by a public agency in order to perform the service. (b) Provide the public with access to public records on the same terms and conditions that a public agency would provide the records and at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law. (c) Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law. (d) Meet all requirements for retaining public records and transfer, at no cost, to the COUNTY all public records in possession of EII upon termination of the Agreement and destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the COUNTY in a format that is compatible with the information technology systems of the COUNTY. ARTICLE VI INDEMNIFICATION To the extent allowed by Florida law, EII shall indemnify, defend, and hold COUNTY harmless from all claims, suits, judgments, or damages to the extent the same arise from the negligence of intentional misconduct of EII in its activity as the Administrative Entity of the Project pursuant to this Agreement. EII's undertaking pursuant to this Article does not constitute consent waiver of sovereign immunity nor consent to be sued by third parties. To the extent allowed by Florida law, COUNTY shall indemnify, defend, and hold EII harmless from all claims, suits, judgments, or damages to the extent the same arise from the negligence of intentional misconduct of COUNTY in the performance as the Fiscal Agent of the Project pursuant to this Agreement. COUNTY's undertaking pursuant to this Article does not constitute waiver of sovereign immunity nor consent to be sued by third parties. Packet Page -2616- C 9/8/2015 16. F.7. ARTICLE VII TERMINATION Termination at Will: This Agreement may be terminated at will by either party by giving a minimum of thirty (30) days' prior written notice of such intent specifying the effective date thereof to the other party. Termination for Default: Each of the parties hereto shall give the other party written notice of default hereunder and shall allow the defaulting party not less than five (5) days from the date of receipt of such default notice to cure said default. In the event the non - defaulting party fails to timely cure the default, the non - defaulting party may terminate this Agreement by written notice to the defaulting party. Upon termination all nonexpendable property, purchased under this Agreement using Project Funds, shall be returned to COUNTY. The aforesaid termination notices, as well as all other notices required herein, shall be considered received by EII and the COUNTY if sent by certified mail, return receipt requested, or by overnight personal delivery service requiring a signature for delivery, and addressed as provided for in Article XXVIII of this Agreement. ARTICLE VIII EQUAL OPPORTUNITY CLAUSE EII agrees to abide by the provisions contained in Collier County CMA # 5 3 8 3 , as amended, which is incorporated herein by reference to Exhibit F. ARTICLE IX STATEMENT OF ASSURANCE During the performance of this Agreement, Ell assures the COUNTY that Ell is in compliance with Title VII of the 1964 Civil Rights Act, as amended, the Florida Civil Rights Act of 1992, as amended, and the Collier County Human Rights Ordinance (Ordinance No. 00 -37), in that Ell does not on the grounds of race, color, national origin, religion, sex, age, handicap or marital status, discriminate in any form or manner against Ell' s employees or applicants for employment. Further, Ell assures able UN de of Ells compliance with the Americans with Disabilities Act of 1990, as amended, as app i and agrees that this Agreement is conditioned upon the veracity of such statements of assurance. Furthermore, EII assures the COUNTY that it will comply with Title VI of the Civil Rights Act of 1964 when federal grant(s) is/are involved. Other applicable Federal and State laws, Executive Orders, and regulations prohibiting discrimination as hereinabove referenced are included by this reference thereto. This statement of assurance shall be interpreted to include Vietnam -Era Veterans and Disabled Veterans within its protective range of applicability. ARTICLE X INSURANCE EIl shall, pursuant to the requirements of Exhibit "E", Insurance Requirements, attached hereto and by reference made a part hereof, procure and maintain throughout the period of this Agreement on behalf of itself and COUNTY, the insurance provided for in Exhibit "E ". All insurance shall be obtained from responsible companies duly authorized to do business in the State of 4 Packet Page -2617- 9/8/2015 16.F.7. Florida. All liability policies shall provide that COUNTY is an additional insured party as to the action of Ell, its employees, agents, assigns, and subcontractors, performing or providing materials and/or services to Ell during the Term of this Agreement and also shall contain a Severability of Interest provision. Every insurance policy must provide for up to thirty (30) days prior written notice to COUNTY of any cancellation, intent not to renew, or reduction in the policy coverage. Ell shall provide COUNTY a Certificate of Insurance documenting such coverage within thirty (30) days of execution of the Agreement by COUNTY. ARTICLE XI CONFLICT OF INTEREST EII represents that it presently has no interest, and shall acquire no such interest: financial or otherwise, direct or indirect, nor engage in any business transaction or professional activity; or incur any obligation of any nature which would conflict in any manner with the performance of service required hereunder. ARTICLE XII DRUG FREE WORKPLACE Ell shall administer, in good faith, a policy designed to ensure that EII's employees, agents and subcontractors are free from the illegal use, possession, or distribution of drugs or alcohol. ARTICLE XIII GOVERNING LAW: VENUE This Agreement shall be governed by the laws, rules, and regulations of the State of Florida, or the laws, rules, and regulations of the United States if EII is providing services funded by the United States Government. Venue shall be in Collier County, Florida. ARTICLE XIV COMPLIANCE EII shall comply with the requirements of all federal, state, and local laws, rules, codes, ordinances and regulations pertaining to this Agreement. ARTICLE XV ASSIGNMENT Neither party may assign or transfer its rights or obligations under this Agreement without the prior written consent of the other party. ARTICLE XVI HEADINGS Article headings have been included in this Agreement solely for the purpose of convenience and shall not affect the interpretation of any of the terms of this Agreement. ARTICLE XVII WAIVER A waiver of any performance or default by either party shall not be construed to be a continuing 5 Packet Page -2618 - 9/8/2015 16.F.7. waiver of other defaults or non - performance of the same provision or operate as a waiver of any subsequent default or non - performance of any of the same terms, covenants, and conditions of this Agreement. The payment or acceptance of funds for any period after a default shall not be deemed a waiver of any right or acceptance of defective performance. ARTICLE XVIII ADDITIONAL R I G H T S AND REMEDIES Nothing contained herein shall be construed as a limitation on such other rights and remedies available to the parties at law, or in equity, which may now or in the future be applicable.. ARTICLE XIX ORDER OF PRECEDENCE In the event of any conflict between the provisions of the Articles of this Agreement and the exhibits hereto, the contents of the Articles of this Agreement shall control over the contents of the exhibits. ARTICLE XX SEVERABILITY In the event any section, sentence, clause, or provision of this Agreement is held to be invalid or illegal, the remainder of the Agreement shall not be affected by such invalidity or illegality and shall remain in full force and effect. ARTICLE XXI PROJECT PUBLICITY Any news release pertaining to the services performed by EH pursuant to this Agreement must recognize the contribution of the BCC as a funding source. EH being a not - for -profit corporation receiving public funding or non - monetary contributions through the COUNTY shall recognize the COUN'T'Y for its contribution in all promotional materials and at any event or workshop for which COUN'T'Y funds are allocated. In written materials, the reference to the COUNTY must appear in the same size letters and font type as the name of any other funding sources. In addition, any development project announcement, ceremonial business opening, or publicity event resulting from efforts of EII, and particularly those projects induced with COUNTY funded financial incentives or other contributions, will be planned in cooperation with the COUNTY's Economic Development and Communications Departments for purposes of coordinating COUNTY's official COUNTY protocol and public recognition. Prior notification to the two Departments for such events will be no less than 15 working days whenever possible or practicable, and potential prospects will be made aware of the COUNTY's publicity protocol before final inducement with any incentive packages or contributions. ARTICLE XXII SURVIVABILITY Any term, condition, covenant or obligation which requires performance by either party subsequent to termination of this Agreement shall remain enforceable against such party subsequent to such tenmination. 2.1 Packet Page -2619- . �� 9/8/2015 16.F.7. ARTICLE XXIII THIRD PARTY BENEFICIARIES This Agreement is for the benefit of the COUNTY and EII. No third party is an intended beneficiary so as to entitle that person to sue for an alleged breach of this Agreement. ARTICLE XXIV POLITICAL ACTION EIl shall not engage, participate or intervene in any form of political campaign on behalf of, or in opposition to, any candidate for political office. ARTICLE XXV MERGER: MODIFICATIONS This writing embodies the entire agreement and understanding between the parties hereto and there are no other agreements and/or understandings, oral or written, with respect to the subject matter hereof, that are not merged herein and superseded hereby. This Agreement may not be modified, amended, extended, or canceled, verbally or by conduct of the parties, but only by a written instrument executed by the COUNTY and EII. Similarly, no contract which purports to affect the terms of this Agreement shall be valid as it affects this Agreement, unless in writing and executed by the COUNTY and E II. ARTICLE XXVI NOTICES All notices required or permitted to be given by a party under this Agreement shall be in writing and sent to the other party by certified mail, return receipt requested, or by overnight personal delivery service requiring a signature for delivery, and shall be addressed as follows: If to the COUNTY: Collier County Leo Ochs, County Manager Collier County 3299 Tamiami Trail East, Ste. 201 Naples, FL 34104 If to EII: Marshall Goodman, Executive Director 3 510 Kraft Road Naples, FL 34105 ARTICLE XXVII BUSINESS INCOME The Accelerator Project is expected to generate Business Income, which includes but, is not limited to income from service fees, rental fees, usage fees and other miscellaneous revenue generated from the Program's operations. Private contributions (in -kind, cash, services, etc.) will be excluded from Business Income. Private contributions revenue may be expended by EII for purposes determined by EII without Board of County Commissioner approval. Private contributions and matching expenses must be maintained separate from the Business Income records and may be reviewed by the County Manager or his designee upon request. This information is considered confidential and will not become a part of the public records documentation or County funded records. Business income will be managed, collected, recorded, reported, and retained by EII within the Accelerator Project. Business income is considered unrestricted funds and will be used for program cash flow or allowable program costs. The use of Business income will require Packet Page - 2620 - ( Y 9/8/2015 16. F.7. the submission of a revenue reuse plan approved by the County which is attached hereto as Exhibit I. At the termination of this Agreement, any unspent Business Income and Private contributions will be returned to the County or the successor of EII. The establishment of self - sustaining organization is paramount to the relationship created in this Agreement. During the term of this Agreement it is the intent of the parties that County funding be used primarily for all expenditures reimbursable under the County's reimbursement policies, whereas Business Income may be used or held in reserve until such time it is required or carried forward to the Project's next fiscal year. EII's establishment of a Reserve Fund to meet its future cash flow and capital requirements is authorized. ARTICLE XXVIII SUBCONTRACTS EII shall be responsible for all work performed and all expenses incurred for the Project subject to reimbursement. (a) EII may, as appropriate and in compliance with applicable laws, subcontract the delivery of the services for the Program, provided however, that EII will be solely liable to the subcontractor for all expenses and liabilities incurred during the contract subject to appropriate reimbursement pursuant to this Agreement. (b) Any and all subcontracts EII executes for the Program shall include provisions whereby EII and the subcontractor agree to abide by all local, state and federal laws and indemnify and hold harmless COUNTY. ARTICLE XXIX BUDGET MODIFICATION Modifications to the "Budget and Scope" may only be made if approved in advance. For purposes of EII's operations as Administrative Entity, budgeted funds shifts by EII between budget category may be up to 20% and shall not signify or be construed as a change in scope if advance approval is obtained in writing by the County Manager or his designee. Individual Budget Category cumulative changes exceeding 20% will require an Agreement amendment approved by the Board of County Commissioners. EII shall provide monthly reports on Business Income and private contributions or in -kind private contribution to the County Manager or his designee. The monthly report on Business Income and private contributions or in -kind private contribution shall detail EII's progress toward the budgeted amount of $165,200. In the event seventy percent (70 %), $28,910, of Business Income and private contributions or in- kind private contribution off setting a budget expenditure, has not accrued per quarter, the Fiscal Agent is authorized to seek BCC approval of an adjusted budget, revenue and expense, in response to revenue shortfalls. Packet Page -2621 - (q 1 9/8/2015 16.F.7. IN WITNESS WHEREOF, this Agreement was dated on the day and year first written above. ATTEST: DWIGHT E. BROCK, CLERK , DEPUTY CLERK ATTEST: Approved as to form and legality Jennifer A. Belpedio, Assistant County Attorney BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA 0 TIM NANCE, CHAIRMAN ECONOMIC INCUBATORS, INC. 0 Packet Page -2622- G 9/8/2015 16.F.7. EXHIBIT A SCOPE OF SERVICE ORGANIZATION: EII, Inc. PROGRAM: Accelerator Project I. Objective : Human Resources and Payroll Performance Criteria EII shall provide statements to include evidence and invoices substantiating the following activities/accomplishments for reimbursement: Deliverable 1: Maintaining a minimum Accelerator Project staff of 2 FTEs with up to a 90 day grace period in the event of a separation occurrence. Deliverable 2: Ensure accounting is completed and completion of biweekly payroll for Accelerator Project staff which may be delegated to a contractor or third party as evidenced by records. II. Objective: Utilize Accelerator Project Facilities Performance Criteria EII shall provide statements to include evidence and invoices substantiating the following activities for reimbursement: Deliverable 3: Maintain physical environment for Accelerator participants with supporting documentation provided on a quarterly basis and executed copies of the Participant Use Agreement. III. Objective: Operations Performance Criteria. EII shall provide statements to include evidence and invoices substantiating the following activities for reimbursement: Deliverable 4: An Annual Accomplishment Report is due to Collier County on an annual basis within 30 days of the end of the term of this Agreement. A presentation to the BCC may be required to present this report, as needed. Deliverable 5: Outreach and fundraising activities evidenced by hosting two (2) networking or promotional activities per month evidenced by photographs and/or supporting documentation. Deliverable 6: Technical assistance to Accelerator participants evidenced by monthly summaries of needs analysis of the Accelerator participants. Al Packet Page -2623 - EXHIBIT B METHOD OF PAYMENT ORGANIZATION: E I I PROGRAM: Accelerator Project 9/8/2015 16. F.7. RELEASE OF FUNDS SHALL BE IN ACCORDANCE WITH THE APPROVED BUDGET AND WILL BE MADE UPON RECEIPT OF THE COMPLETED M O N T H L Y REQUEST FOR PAYMENT FORM. NO MODIFICATIONS WITHIN BUDGET CATEGORIES SHALL BE FUNDED UNLESS PRIOR WRITTEN APPROVAL HAS BEEN GRANTED BY THE COUNTY MANAGER, OR DESIGNEE, WHICH APPROVAL SHALL BE CONSISTENT WITH THE TERMS OF THE COUNTY/EII BUDGET AND AGREEMENT AND NOT UNREASONABLY WITHHELD. THE COUNTY'S FISCAL YEAR COMMENCES ON OCTOBER 1st AND ENDS ON SEPTEMBER 30th OF THE FOLLOWING CALENDAR YEAR. INVOICES FOR SERVICES DELIVERED BETWEEN OCTOBER Ist AND SEPTEMBER 30th MUST BE RECEIVED NO LATER THAN 0 C T 0 B E R 10 OF EACH YEAR TO ALLOW CLOSEOUT OF THE COUNTY'S FISCAL YEAR. The requests for payment shall include the report on progress on the strategies and tasks identified in the agreed Scope of Services. Packet Page -2624 - a BUDGET DETAIL FOR SERVICES ORGANIZZA TION: Ell PROGRAM: Accelerator Project VVLiTDTT R 1 Budget Category Uses I Personnel Costs Facility Operating Costs Reimbursable General Operating Costs Necessary expenditures not funded by the County's Reimbursement Policy Total General Operating Costs Facility Improvements Notes Executive Director, Administrative Manager & FT Intern Rent, IT system, etc Insurance, professional services, business services, auditing, legal, networking and marketing, etc. Services, food, beverage, and other miscellaneous expenses Site Improvements, furniture & fixtures, shipping, design, and installation for data, electrical, HVAC & lighting requirements 9/8/2015 16.F.7. September 15, 2015 thru FY 16 Western Accelerator operations and facility development with a downsized staff and facility improvement model 316,600 127,500 122,200 20,0001 142,200 1 168,4001 Budget Category Sources Business Income 115,200 Private Contributions 50,000 County Direct Pay Rent & Prop and Liability Ins. 105,500 County -EII Contract Funding 484,000 NOTE: The facility operating costs category includes rent, property and liability insurance totaling $105,500 that will be paid directly by the County. NOTE: When completing payment requests complete the appropriate forms and attach detailed documentation identifying obligations or expenses in the above budget categories only. v Packet Page -2625- B2 v ORGANIZATION: PROGRAM: REPORT PERIOD PERCENTAGE COMPLETED EXHIBIT C PROGRAM PERFORMANCEREPORT EII Accelerator Project THROUGH 9/8/2015 16. F.7. OR SCOPE OR SERVICES OR COMPONENTS OF CONTRACT I. ACCOMPLISHMENTS: Packet Page -2626- y I: Human Resources II: Utilize Accelerator Project III: Operations Report No. and Payroll Facilities 1. • Maintaining a • Maintain physical • Host two (2) Submit minimum Accelerator environment for accelerator networking or On or staff of 2 FTEs. participants. promotional activities before, . Complete accounting per month. October 15, & biweekly payroll • Provide technical 2015. for Accelerator assistance to the Project staff. Accelerator participants. 2. • Maintaining a • Maintain physical • Host two (2) Submit On minimum Accelerator environment for accelerator networking or or before, staff of 2 FTEs. participants. promotional activities November . Complete accounting per month. 15, 2015. & biweekly payroll • Provide technical for Accelerator assistance to the Project staff. Accelerator participants. 3. • Maintaining a • Maintain physical • Host two (2) Submit On minimum Accelerator environment for accelerator networking or or before, staff of 2 FTEs. participants. promotional activities December . Complete accounting per month. 15, 2015. & biweekly payroll • Provide technical for Accelerator assistance to the Project staff. Accelerator participants. 4. • Maintaining a • Maintain physical • Host two (2) Submit On minimum Accelerator environment for accelerator networking or or before, staff of 2 FTEs. participants. promotional activities January 15, • Complete accounting per month. 2016. & biweekly payroll • Provide technical for Accelerator assistance to the Project staff. Accelerator participants. Packet Page -2626- y 9/8/2015 16. F.7. 5. • Maintaining a • Maintain physical • Host two (2) Submit On minimum Accelerator environment for accelerator networking or or before, staff of 2 FTEs. participants. promotional activities February . Complete accounting per month. 15, 2016. & biweekly payroll • Provide technical for Accelerator assistance to the Project staff. Accelerator participants. 6. • Maintaining a Maintain physical • Host two (2) Submit On minimum Accelerator environment for accelerator networking or or before, staff of 2 FTEs. participants. promotional activities March 15, . Complete accounting per month. 2016. & biweekly payroll • Provide technical for Accelerator assistance to the Project staff. Accelerator participants. 7. • Maintaining a • Maintain physical • Host two (2) Submit On minimum Accelerator environment for accelerator networking or or before, staff of 2 FTEs. participants. promotional activities April 15, . Complete accounting per month. 2016. & biweekly payroll • Provide technical for Accelerator assistance to the Project staff. Accelerator participants. 8. • Maintaining a • Maintain physical • Host two (2) Submit On minimum Accelerator environment for accelerator networking or or before, staff of 2 FTEs. participants. promotional activities May 15, . Complete accounting per month. 2016. & biweekly payroll • Provide technical for Accelerator assistance to the Project staff. Accelerator participants. 9. • Maintaining a • Maintain physical • Host two (2) Submit On minimum Accelerator environment for accelerator networking or or before, staff of 2 FTEs. participants. promotional activities June 15, . Complete accounting per month. 2016. & biweekly payroll • Provide technical for Accelerator assistance to the Project staff. Accelerator participants. 10. • Maintaining a • Maintain physical • Host two (2) Submit On minimum Accelerator environment for accelerator networking or or before, staff of 2 FTEs. participants. promotional activities July 15, . Complete accounting per month. 2016. & biweekly payroll • Provide technical for Accelerator assistance to the Project staff. Accelerator participants. 11. • Maintaining a • Maintain physical • Host two (2) Submit On minimum Accelerator environment for accelerator networking or or before, staff of 2 FTEs. participants. promotional activities August 15, . Complete accounting per month. 2016. & biweekly payroll Packet Page -2627- • Provide technical for Accelerator assistance to the 9/8/2015 16.F.7. 1T. PROBLEMS: Packet Page -2628- Project staff. Accelerator participants. 12. • Maintaining a • Maintain physical • Host two (2) Submit On minimum Accelerator environment for accelerator networking or or before, staff of 2 FTEs. participants, promotional activities September • Complete accounting per month. 15, 2016. & biweekly payroll • Provide technical for Accelerator assistance to the Project staff. Accelerator participants. 13. • Maintaining a • Maintain physical • Submit Annual Submit minimum Accelerator environment for accelerator Accomplishment Within 45 staff of 2 FTEs. participants. Report. days of . Complete accounting • Host two (2) expiration & biweekly payroll networking or or for Accelerator promotional activities termination. Project staff. per month. • Provide technical assistance to the Accelerator participants. 1T. PROBLEMS: Packet Page -2628- 9/8/2015 16. F.7. III. STATUS REPORT ON PROVISION OF SERVICES: (include report period and year- to- date) SCOPE OF ANNUAL REPORT YEAR TO % OF GOAL SERVICE PROGRAM PERIOD DATE COMPLETED PROVIDED GOAL (See attached scope of work for detailed deliverables, benchmarks a n d performance measures.) IV. OTHER COMMENTS: SUPPORTING ATTACHMENTS: Along with the above status report, provide Project details for the deliverables delineated in Exhibit A. For specific activities and accomplishments submit supporting documentation listed below or other documents which support accomplishment of deliverable. For example timesheets, payroll reports, expense reports, invoices, statements, canceled checks, mandatory data and information required of participants (submitted quarterly), copies of executed Participant Use Agreements, Annual Accomplishment Report, invoices and cancelled checks, or copies of press releases, media placement and other ads, or event budgets, or invitations or invoices for reserving event locations, and summaries of need analysis. Packet Page -2629- ��, 9/8/2015 16. F.7. INSTRUCTIONS FOR PROGRAM PERFORMANCE REPORT THE PURPOSE OF THIS REPORT IS TO PRESENT A CONCISE REVIEW SUMMARIZING EIrS ACTIVITIES FOR THE COUNTY FUNDED PROGRAM. USE ADDITIONAL PAGES ONLY IF NECESSARY/REQUIRED. EII: Provide name of Ell as it appears on your Agreement. Program: Provide title of the program or general service area as contracted. It is defined in the Agreement between the COUNTY and EII for economic development. Report Period: Identify dates covered by this narrative report After the first report, begin with ending date of the previous report. I. Accomplishments Highlight significant or major accomplishments in the COUNTY funded program during the report period. II. Problems Provide a description of the problems that were encountered during this report period which would have a negative impact on the program. Also, provide a plan for a corrective action, to include time of implementation, effect on the program, and indicate if there is a need to modify the program, goals, Agreement or funding. III. Status Report on Provision of Services Goals and Obiectives (Report period and quarterly-to- date) Report statistically on program goal achievements for report period and quarterly -to -date total. IV. Other Comments Use this section for general remarks regarding EII, etc. General information to assist in understanding the program's operation and purpose may be included. Provide anyRequired Attachment. Packet Page -2630 - y E- z w W O w A� �v wO UW a H z w d a Packet Page -2631- 9/8/2015 16.F.7. x oa �o �o 9�DO cam, E N c � a� a U c� b o � a. -d ¢ cc U oA CQ Packet Page -2631- 9/8/2015 16.F.7. 9/8/2015 16.F.7. EXHIBIT E INSURANCE REQUIREMENTS EII's Liability Insurance: EII shall procure and maintain in force such insurance as will protect it from claims under Workers' Compensation laws, disability benefit laws, or other similar employee benefit laws from claims for damages because of bodily injury, occupational sickness or disease, or death of its employees including claims insured by usual personal injury liability coverage; from claims for damages because of bodily injury, sickness or disease, or death of any person other than its employees including claims insured by usual personal injury liability coverage; and from claims for injury to or destruction of tangible property including loss of use resulting there from, any or all of which may arise out of or result from EII's operations under the Agreement, whether such operations be by EII or by any subcontractor or anyone directly or indirectly employed by any of them or for whose acts any of them may be legally liable. This insurance shall be written for not less than any limits of liability specified in the Agreement or required by law, whichever is greater, and shall include contractual liability insurance. EII will file with COUNTY a certificate of such insurance, acceptable to COUNTY. These certificates shall contain a provision for cancellation as found in paragraph 5 of Section B immediately below. Insurance Required: A. General EII shall procure and maintain insurance of the types and to the limits specified in paragraphs B(1) through (4) below. All policies of insurance under this Agreement shall include as additional insured COUNTY and its officers and employees. EII's coverage shall be primary to the County's policy. All policies shall provide for separation of insured's interests such that the insurance afforded applies separately to each insured against whom a claim is made or a suit is brought. B. Coverage EII shall procure and maintain in force during the life of this Agreement the following types of insurance coverages written on standard forms and placed with insurance carriers approved by the Insurance Department of the State of Florida. The amounts and type of insurance shall conform to the following requirements: 1. Workers' Compensation - EII shall procure and shall maintain during the life of this Agreement, the appropriate types of Workers' Compensation Insurance for all of its employees to be engaged in work under this Agreement in accordance with Section 440, Florida Statutes. In case any class of employee engaged in hazardous work under this Agreement is not protected under the Workers' Compensation statute, EII shall provide employer's liability insurance for all said employees. Packet Page -2632- ',. xr� 9/8/2015 16.F.7. EXHIBIT F (CONTINUED) Employer's Liability Limit each accident Not Applicable (N /A) Limit disease aggregate N/A Limit disease each employee N/A 2. Commercial General Liability - Coverage must be afforded on a form no more restrictive than the latest edition of the Commercial General Liability Policy filed by the Insurance Service office with limits of not less than those listed below and must include: General Aggregate/Bodily Injury/Property Damage $1,000,000 Products & completed operations N/A Personal & advertising injury N/A Each occurrence 1,000,000 Fire damage (any one fire) N/A 3. Business Automobile Liability - Coverage must be afforded on a form no more restrictive than the latest edition of the Business Automobile Liability Policy filed by the Insurance Service office with limits not less than those listed below and must include: Business Auto, Hired and non -owned vehicles $500,000. 4. Professional Liability: $ N/A per claim 5. Certificate of Insurance and Copies of Policies - Certificates of Insurance will be furnished by EII evidencing the insurance coverage specified in the previous paragraphs B(1) through (4) inclusive, and on request of COUNTY certified copies of the policies required shall be filed with the Insurance Claims and Management Department of COUNTY. The required Certificates of Insurance not only shall list additional insured described above, for the operations of EII under this Agreement (excluding the workers' compensation and professional liability policies) but shall name the types of policies provided and shall refer specifically to this Agreement. If the initial insurance expires prior to the expiration of this Agreement, renewal Certificates of Insurance shall be furnished thirty (30) days prior to the date of their expiration. Cancellation - Should any of the above described policies be canceled or non- renewed before the stated expiration date thereof, insurer will not cancel same until up to thirty (30) days prior written notice has been given to the below named certificate holder. This prior notice provision is a part of each of the above described policies. Packet Page -2633 - 9/8/2015 16.F.7. EXHIBIT F COLLIER COUNTY CMA #5383 EQUAL EMPLOYMENT OPPORTUNITY (EEO) [Effective Date: March 17, 1999 (Revised: October 1, 2001; Revised: October 1, 2003; Revised: May 1, 2009)] § 5383 -1. Purpose. The purpose of this Instruction is to provide for the implementation of an equal employment opportunity (EEO) procedure authorized by the County Manager. § 5383 -2. Concept. It is the practice of the County to ensure that all Human Resources procedures are in compliance with state and federal law. The County prohibits discrimination as defined by state and federal law. A. All Human Resources practices, including compensation, benefits, discipline, safety, as well as social and recreational activities will be administered and conducted in compliance with state and federal law. B. Recruitment, selection, placement, promotion, transfer, training, reduction in force and layoff decisions will be based on factors including the candidate's/employee's job- related qualifications and abilities. Seniority may be considered as a factor given other factors are equal. C. An outreach program may be utilized to recruit, hire and ensure advancement of qualified minority group members, women, disabled individuals and veterans. D. Collier County government will take necessary steps to ensure that the work environment is free of unlawful discrimination or harassment. E. The County will continue to review its Human Resources procedures to ensure that its supervisors and managers adhere to its commitment to equal employment opportunity (EEO) principles. F. Employees who have EEO - related questions, comments or complaints are encouraged to discuss them with their Supervisor. If they are unable to resolve the situation through their Supervisor, they may discuss it with their Department Director, Division Administrator or a representative from the Human Resources Department. The employee may also utilize the Commitment to Fair Treatment Procedure. § 5383 -3. Currency. The Human Resources Department is responsible for maintaining the currency of this Instruction. § 5383 -4. Reference. Collier County Personnel Ordinance, Ordinance No. 2001 -50: Equal Employment Opportunity: It is the policy of Collier County to en!--,-- +1­ -" "1.-- ----- Resources policies and practices are administered without regard to race, co Packet Page -2634 - -ge, national origin, physical or mental handicap, or marital status. 9/8/2015 16.F.7. EXHIBIT G ROLE AND RESPONSIBILITIES OF ADMINISTRATIVE ENTITY EII shall achieve and maintain tax- exempt status as a Florida not - for - profit and IRS 501(c)(3). EII will maintain good standing with the Florida Secretary of State and corporate formalities under Florida law. EII will strive to achieve the core objectives and to support the goals and objectives identified in the BCC adopted Business Plan for Collier County Innovation Accelerators. The Board of Directors of EII (serving as the Administrative Entity) shall exercise executive oversight over the Project Executive Director. EII, as the Administrative Entity, would provide all required administrative support and management functions collaboratively with the Executive Director, who would generally be responsible for managing operations, implementation of the Business Plan and providing accelerator services. Public resources for executing the Project would flow through COUNTY, as the Fiscal Agent, to the Administrative Entity. Administrative Entity Functions include, but are not limited to, the following: 1) Maintain Accelerator Project staff and all associated human resource functions including payroll, benefits, and insurance. 2) Management of subleases and related real estate issues, including insurance and leasehold improvement. 3) Procurement of equipment, supplies, goods and services required consistent with Exhibit "T' Project Purchasing Procedures. 4) Disbursement of resources and collection of rents and fees for service. 5) Administer accounting controls and fiscal management (including submitting Exhibit "I ") for all assets and finances from Private contributions and Business Income. 6) Provide monthly Project Activity Reports as delineated in Exhibit "D" to COUNTY for Project oversight discussion and/or program refinement. 7) Administer audit requirements. 8) The Administrative Entity shall provide budgetary advice based on the Executive Director's proposed budget and the budget is to be approved by COUNTY. 9) Work as a team and cooperate to achieve Accelerator Project success. 10) Provide all documents pertaining to the Accelerator Project as requested by the COUNTY whether in EII's possession or the possession of contractors or vendors. Packet Page -2635 - 9/8/2015 16.F.7. EXHIBIT H ROLE AND RESPONSIBILITIES OF THE FISCAL AGENT COUNTY, as a public entity, has responsibilities for funds received from the State and for funds dedicated by COUNTY for economic development. The Fiscal Agent shall provide the oversight and policy direction for the Project. The Fiscal Agent shall have final oversight and approval of the Project budget wherein budgetary advice was provided by Administrative Entity based on the Executive Director's proposed budget. In the event that Administrative Entity commits resources or enters into a contract and Administrative Entity's proposed budget or the approved budget has that line item removed or reduced then Fiscal Agent shall give at least thirty (30) days written notice of said action to prevent a negative fiscal event for the Administrative Entity. Should a negative fiscal event be created by a line item removal or reduction in the budget the Fiscal Agent agrees to be responsible for the negative fiscal impact or reimburse Administrative Agent for the negative fiscal event. The Fiscal Agent shall propound the audit requirements for the Agreement. Packet Page - 2636 - Q. 9/8/2015 165 . 7. EX MIT I RE v'ENLTE REUSE PLANT Revenue Reuse Plan Quarterly Report Packet Page -2637 - 9/8/2015 16.F.7. REVENUE REUSE PLAN ADMINISTRATIVE ENTITY: Economic Incubators, Inc. PROJECT: Accelerator Project 1. The implementation of this Revenue Reuse Plan is predicated on principles of fiscal control and sound policy which, protects the parties and their constituents within a project with multiple funding sources namely COUNTY funding, Business Income, and Private Contributions. By design the Accelerator Project is to be largely self - sustaining in future years once established and generating revenue at capacity. Consistent with the Accelerator Project Budget this Revenue Reuse Plan will govern the use of Business Income as provided for and defined by Article XXVII of this Agreement and is intended to establish and authorize the following: A. Business Income is authorized to be expended within Project budget categories, at the discretion of the Executive Director of EII, notwithstanding the $20,000 which can be expended on non reimbursable items, see B below. Furthermore, to address the needs of the organization's cash flow demand and to promote future self sustainability, a reserve fund that allows Business Income and Private Contributions to be carried forward into future years is authorized; B. Up to $20,000 of Business Income may be expended on expenses, which are not reimbursable by the COUNTY; and 2. The Administrative Entity will report Business Income monthly and expenditures through quarterly submission, to the Fiscal Agent, of the Revenue Reuse Plan Quarterly Report, the form is herein below. At the expiration of the term of this Agreement, EII will be required to update the Revenue Reuse Plan and obtain approval prior to implementation. 3. Revenue Reuse Estimated Budget. Business Income Revenue Estimate $115,000. Packet Page -2638- 9/8/2015 16. F.7. Revenue Reuse Plan Quarterly Renort Date Business Income Report submitted: Reporting Period From to Description of activities that generated the Business Income (BI): (add listing if required) Description of activities funded by Business Income (BI): (add listing if required) Budget Category N1J71rr Budget •: ".�f'$'y:',:, Current Budget Balance "' >.a : -, r e�, BI Expended this Reporting Period '�' ' Remaining Balance Organizational expenses $0.00 $0.00 $0.00 Operational Expenses $0.00 $0.00 $0.00 Other Expenses $0.00 $0.00 $0.00 Fund Balance $0.00 $0.00 $0.00 Total $0.00 $0.00 $0.00 Certi�icatiori:of� To the best of my knowledge, the data on this form is correct and all disbursements were made in accordance with grant regulations. I certify that all Business income is maintained in a separate fund/account. Name and Signature of Preparers I Name and Signature of Authorizing Official: Name Print Name Packet Page -2639- 9/8/2015 16. F.7. EXHIBIT J PROJECT PURCHASING STANDARDS Packet Page -2640- Economic Incubators, Inc. Procurement Policy Policy M FI -002 9/8/2015 16. F.7. Policy Statement /Construction: Economic Incubators, Inc. ("Ell") hereby adopts the policies and procedures outlined herein for purposes of Ell's procurement. Further, to the extent any action herein is required or stated to be taken by an officer, employee, or committee, this policy shall be construed or interpreted such that said action shall be the responsibility of the appropriate officer, employee, or committee designated or appointed by Ell. Any questions regarding the interpretation of this policy will be made and decided by the Board of Directors of Ell Of Interest to: Economic Incubators, Inc. Board members and staff involved in financial and procurement activities Effective Date: September 16, 2015 Purpose: To establish policy for the procurement of goods and services to ensure the purchase is conducted in an open manner resulting in competitive pricing, proper management and oversight, accountability and efficiency, and for the prevention of waste, fraud and abuse. Background: The Economic Incubators, Inc. and its employees are accountable for the use of funds. General Policy: The procurement of goods and services may be initiated by staff when /where the services are needed for the day -to -day items. A Quotes /Procurement Authorization Form or Purchase Order Request will be initiated when the procurement is for non- recurring items, expenditures unique to a particular funding source or outside an annual contract for services or items. This may also include procurement for office supplies, repairs, equipment, advertising, printing, airline tickets, registration fees, subscriptions, publications, and any participant supplies. For re -order items, the Executive Director or his designee will secure new bids at least once per year. The Quotes /Procurement Authorization Form will include the following information: • For each of the three vendor quotes — vendor name, address, total dollar amount (documentation attached) and details /description of supplies or services requested, if required • Business purpose /use of supplies and /or services and comments ■ Signature, date, printed name and title for: o employee requesting the goods or services; o Signature, printed name and title of approving Executive Director; Executive Director For all procurements for personal services in excess of $5,000, a Conflict of Interest Statement /Certification will be signed by the Vendor. This completed form will be used to maintain compliance with CFR � packet Page - 2641- )(3)(i -iv) and should accompany the Quotes /Procurement Authorization Form. 7, 9/8/2015 16.F.7. Completed Quotes /Procurement Authorization Forms will be submitted to the Executive Director for budget authorization and funding allocation. Office supplies, and other items which are approved with a blanket purchase order, will be ordered by the Executive Director or the Executive Director. Once approved, the purchase order will be distributed to the vendor or the employee (if requested). Invoices received for purchases with no prior authorization are subject to rejection without payment. Invoices submitted for payment without receiving proper documentation (receipts, packing slips, etc.) will be rejected for payment. No employee shall participate in the selection or award of a contract or vendor if the employee, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of these parties has a financial or other interest in the vendor or firm selected for an award. Procurement Thresholds — All reasonable requisitions submitted for items will require the Executive Director's approval. The Executive Director may approve procurements up to $5,000 without prior approval of the Board of Directors. Above that amount will require the prior approval of the Board of Directors. The Quotes /Procurement /Sole Source /E -Mails or Authorization Forms will indicate the reason for the expenditure, a comparison for reasonableness indicating proof of competitive procurement, signature of the requestor and approval by the Executive Director. The following parameters for procurement of goods and services shall be followed: (1) up to $500 — comparison or price analysis; (2) $500 and up to $5,000 - three quotes or demonstrated comparisons; (3) $5,000 and up to $100,000 - three written bids, (4) $100,000 or more - advertisement for competitive proposals for contract and /or provider services. (Request for Proposals required.) Sole source procurement Sole Source /Emergency Procurement Authorization Form shall be used to justify the reason for the request and to obtain all of the approvals. All of the cost principles as outlined in the Cost Principles for Non - Profit Organizations (A -122), need to be followed at all times. These regulations and guidelines provide for cost principles reflecting allowability and restrictions of cost items. These guidelines are intended to ensure that: • Appropriate procurement documentation is completed • Proper documentation and /or approval is completed • Costs were allocated correctly or allocations were substantiated • Justification and /or business purpose /use for items purchased was provided and adequate Documentation - Procurement must be accompanied by invoices, receipts, copies of the check used in the purchase and copies of the I Packet Page - 2642 - ►CH proof of transfer. 9/8/2015 16.F.7. Cost Price Analysis 1. A cost or price analysis must be performed in connection with every procurement. Cost and price analyses will help ensure that: a) Public funds are spent economically and the cost is reasonable. b) The funds expended are appropriate in relation to the need for the service. c) Vendors provided the best services at the most favorable prices. 2 An annual price analysis to document reasonableness may be conducted for goods and services ordered on an ongoing basis. In lieu of a price comparison for each purchase, an annual price analysis will be prepared for goods and services purchased on a regular basis to operate the organization. An annual estimate will be made of the value of the items to be ordered, and the proper procurement in accordance with established thresholds will be completed based upon the aggregate amount estimated to be necessary. 3. Where appropriate, an analysis is made of lease and purchase alternatives to determine which would be the most economical and practical procurement. Procurement Procedures A. Records Maintenance. Records will be maintained for a seven year period to trace each service provider procurement process. These records shall include documentation to explain the rationale for the method of procurement, contractor selection or rejection, justification for lack of competition when competitive bids or offers are not obtained, cost /price analysis, and the basis for the contract price. Rationale for Procurement Method. For competitive procurement, the Request for Proposals, which describes the procurement process, will be kept on file for each procurement. Rationale for all non - competitive procurement will be documented according to regulations. Contractor Rejection or Selection. The evaluation criteria will be kept on file for each procurement, including the individual evaluation forms completed for each proposal submitted. Also kept on file will be copies of any correspondence sent to service providers regarding the procurement. Basis for Contract Price. The service provider proposal and contract will serve as the basis for documentation of the contract price. Any miscellaneous correspondence regarding proposed costs will also be maintained in the appropriate file. A cost /price analysis will be conducted on each proposal recommended for funding by the Board. B. Contract Signature Authority. Packet Page -2643 - The Executive Director of Ell is the only official authorized to sign and execute contractual �) 9/8/2015 16.F.7. agreements and modifications. The Executive Director is also the only official authorized to terminate any contractual agreement. C. Code of Conduct. No employee or authorized agent, board member or officer, shall participate in or cast a vote in the selection of or in the award of a contract if a conflict of interest real or apparent is involved. Such a conflict would arise when the individual (employee, agent, board member or officer), any member of the individual's immediate family, the individual's partner, or an organization which employs or is about to employ any of the above, has a financial or other interest in the firm or organization selected for award. No employee or authorized agent, board member or officer, shall solicit or accept gratuities, favors or anything of monetary value from contractors, potential contractors or parties to any subagreement. Control for conflict of interest is exercised through the Board's funding process. Proposals are evaluated by staff based on evaluation criteria published in each Request for Proposals. Final funding decisions are made by the Executive Director in consultation with the Board of Directors. No one single staff or board member controls the selection or administration process. Regardless of the type of procurement, if Ell desires to enter into a contract with an organization or individual represented on the Board of Directors, the contract must be approved by a two - thirds vote of the directors present, a quorum having been established, and the Board of Directors who could benefit financially from the transaction must declare their conflict and abstain from voting on the contract. Board members must disclose any such conflicts in accordance with the requirements of the Florida Statutes and complete appropriate Conflict of Interest forms. D. Procedures and Monetary Thresholds for Small Purchases. The following monetary thresholds have been established by the Board of Directors in accordance with Florida Statutes for procurement of goods and services: (1) unit price up to $500 - comparison or price analysis; (2) unit price $500 and up to $5,000 - three quotes or demonstrated comparisons; (3) unit price $5,000 and up to $100,000- three written bids; and (4) unit price of $100,000 or more - advertisement for competitive proposals or bids. Sole source procurement will only be used under the following circumstances: (1) emergency situations where time constraints do not allow a competitive solicitation; (2) when only one supplier has the unique capacity to provide the goods or services required; or (3) when solicitation results in inadequate competition. These situations will be justified in writing and approved by the Executive Director. E. Method of Procurement. To the extent practicable, service p Packet Page -2644- acted competitively. Non - competitive, or sole source procurement shall be minimized, but may be authorized if justified and 9/8/2015 16.F.7. documented. When procuring services by a competitive solicitation over $49,999, the Executive Director will use a Request for Proposal (RFP) process. Public notice of the RFP will be provided through Ell's website or other appropriate website or methodology as determined by the Executive Director. Contracts for all programs will generally be Performance -based Cost Reimbursement, with supporting documentation required for each cost element. Profit may be proposed by private "for profit" service providers; but in no event may profit exceed 10 %. Any excess of revenue over costs incurred for services provided by Ell must be included in program income. The type of agreement entered into by Ell may be a fixed price or cost reimbursement, depending on the method of procurement and goods or services being procured. The cost plus a percentage of cost or percentage of construction costs methods of contracting shall not be used. Where possible, the Board may utilize state approved contracts for the purchase of equipment, goods, and services. F. Bids and Formal Requests for Proposals Purchases of $50,000.00 and above shall be publicly advertised and a formal request for bids, proposals, or quotations shall be issued. Previous proposers, as well as entities which have asked to be included on the proposer /bid list for various types of goods and services, shall be notified that the Board is seeking service providers. Legal notices will be posted on the Board's website and shall be advertised throughout the five county area. Solicitations for goods and services will provide for all of the following: • Clear and accurate descriptions of the goods or services being procured. The description must not contain features that restrict competition. • All requirements that must be fulfilled and all other factors used in evaluating bids or proposals. • Technical requirements described in terms of functions to be performed or performance required, including a range of acceptable or minimum acceptable standards. • Specific features of brand name or equal descriptions, if included in the solicitation. • If procuring goods or certain types of services, the acceptability of metric measurements. • Preference for ecologically sound and energy - efficient products. In accordance with Federal regulations, the Board of Directors will take all necessary affirmative steps to assure that minority firms, women's business enterprises and faith -based organizations are used when possible; including dividing total requirements of the procurement action, when economically feasible, into smaller tasks or quantities to permit maximum participation, and establi Packet Page - 2645- dules, where the requirements permit, which encourage participation by small and minority business and women's business %) 9/8/2015 16. F.7. enterprises. Special consideration shall be given to proposals submitted by faith -based and community based organizations; however, this consideration shall in no way prevent the Board from choosing alternative organizations to provide services. The primary consideration in the selection of service providers shall be the effectiveness of the agency or organization in delivering comparable or related services based on demonstrated performance, in terms of the likelihood of meeting performance goals, cost, quality of training, and characteristics of participants. In addition, consideration shall be given to demonstrated performance in making available appropriate supportive services including child care. Total proposed cost shall also be an important consideration in the selection of service providers. The Executive Director shall establish a Review Panel. The Review Panel shall upon receipt of proposals by the published deadline, shall review and consider the proposals. Cost analysis information is to be prepared by the Executive Director or his designee during the review process. A Bidders' Conference may be provided to ensure potential proposers have the information necessary to write a competitive proposal. A Review Panel meeting will be held to discuss proposals and develop recommendations. At this meeting, the Review Panel may invite prospective providers to explain their proposals as needed. The Review Panel completes the review sheets and determines final recommendations for providers(s). Review sheet totals do not necessarily determine the outcome but serve as a tool for reviewers to formulate ideas for discussion. The Review Panel forwards its recommendations to the Board of Directors for final award and funding level approval. Due to the bi- monthly Board meeting schedule, the Review Panel may receive authority by the Board to approve providers in order for contract negotiations to commence, contingent upon final approval by the Board of Directors required at the next scheduled meeting. Requirements and other factors used in the proposal evaluation process for submitting a bid will be outlined in each Request for Proposal. Ell reserves the right to waive minor irregularities in proposals submitted. Factors used in the proposal evaluation process will include, but not be limited to: • Demonstrated ability to deliver high quality related or comparable goods or services, including consideration as to whether the organization has adequate financial resources or the ability to obtain them. A satisfactory record of integrity, business ethics and fiscal accountability. Necessary organizational experience, accounting, and operational controls. The quality of the programmatic design. Reasonableness of proposed cost and ability to meet specifications of the program and applicable performance goals. • Ability to Perform. A determination will be made by board staff and the Review Panel of whether a potential service provider has the means and resources to operate the proposed program. This determination is based on the number of staff in the project and their abilities and experience to operate programs. Review Panel members and board staff will review information proviriari rnnrarnina the program operations statement, qualifications of personnel, exper?acket Page - 2646_,(s), facilities and equipment needed, management and administration ability and experience. 9/8/2015 16.F.7. • Record of Performance. Requests for Proposals include a questionnaire, which must be completed with each proposal, on the agency background and administrative ability. In the evaluation of proposals, consideration is given based on previous experience and success in operating the same or similar employment and training activities. • Technical and Financial Resources. Board staff and Review Panel members will analyze service provider technical and financial resources. • Additional Control Concerning Contract Price. The senior official of the service provider shall certify that to the best of his /her knowledge and belief, the cost data are accurate, complete and current at the time of agreement on price and must agree to a negative price adjustment if the certification is subsequently found to be inaccurate (i.e. defective pricing). • Controls for Avoiding Unnecessary Services. Requests for Proposals will contain detailed specifications for program activities to be funded. Staff and the Board of Directors will evaluate service provider proposals based on criteria which include the feasibility, value, and appropriateness of proposed activities to customers. A contract will be executed with each service provider approved by the Board of Directors and Executive Director for funding and who have successfully completed contract negotiations. Each contract will include a statement of work detailing services to be provided under the contract. • Control on Award Prohibition. No subcontractor will enter into any contract or subcontract at any tier to any party which is disbarred, suspended, or ineligible for participation in State or Federal programs. G. Sub - recipient /vendor Determination Ell staff will evaluate the substance of each relationship to determine whether the features represent a vendor or sub - recipient in accordance with OMB circulars. H. Procurement Files. All documentation detailing the historical process of a specific procurement action will be maintained in a procurement file, and maintained for a minimum of five years. A procurement file will contain, at a minimum, the following documentation: • Copy of public notice announcing solicitation /request for proposals • List of bidders mailed copies of public notice • Request for proposals • Copies of proposals received • Record of proposal evaluations /rai Packet Page -2647- 9/8/2015 16.F.7. • Record of formal approval /disapproval of proposals • Cost estimate and cost /price analysis of accepted proposals • Record of all written communications between proposers and staff during the procurement process. Note: Records of negotiations /basis for final agreement price will be maintained by the Executive Director. I. Appeal and Protest Procedures. Within 72 hours after receipt of the notice of Ell's decision, the unsuccessful bidder must submit, in writing, a notice of protest to the Executive Director of Ell. Within 10 days after filing the notice of protest, the unsuccessful bidder shall file a formal written protest detailing the reason for the protest. J. Contract Management. The Executive Director will act as the liaison to each executed contract and will provide ongoing oversight, technical assistance, and quality assurance. Each contractual agreement requires the contractor to submit monthly contract participant reports and monthly requests for payment, with supporting documentation. Executive Director or his designee will review these reports, to determine if the contractor is performing in accordance with the contractual agreement, and to identify any necessary corrective measures. Contract Program Status Report. Each monthly contract program status report will provide a narrative /summary describing all contract activities and expenditures during the reporting period. The Executive Director will compare program performance against contract goals and will also initiate any required corrective action. Monthly Request for Payment. Each monthly request for payment will include a summary of line item costs expended during the reporting period. The report, at a minimum, will include an accounting ledger, and may include supporting documentation to justify expenditures, such as copies of payroll registers reflecting allocation of staff time, salary, and benefit payments; copies of paid invoices, receipts for equipment, supply and service purchases; and other justifications supporting cost allocations within the line item budget. Each contractor is required to maintain all supporting documentation on file for easy access by the Executive Director, monitor, or other authorized parties. K. Contract Files. A separate contract file will be maintained by the Executive Director for each individual awarded contract, and will contain documentation of all actions relating to the administration of the contract. Each contract file will contain, at a minimum, the following documentation: • Original signed and executed col Packet Page -2648- al agreement, to include statement of work and all attachments. 9/8/2015 16.F.7. Original signed and executed copy of all approved contract modifications. • Copy of initial proposal submitted by the awarded contractor. Copies of monthly requests for payments, program status reports and records of staff review /actions. Records of all written communications between contractor and staff during the life of the contract. • Contract close out report, upon completion of the contract. Contract files will be archived /maintained on -site for a minimum of seven years after the close out of the contract. Contracts will then be disposed of by shredding by staff or a contracted service. L. Contract Close Out Report. Each contractual agreement requires contractors to provide Ell with a contract close out report and program income report, if applicable, within 90 days after expiration of contract. The close out report will summarize all contract expenditures during the contract, as well as provide an inventory of all property purchased under the contract which is valued at $5,000 or more. The report will be reviewed by the Executive before final payment is issued to contractor. Packet Page -2649- 9/8/2015 16. F.7. EXECUTIVE SUMMARY Recommendation to continue operation of a modified Soft Landing Business Accelerator Project in view of the eminent termination of the Grant Agreement with the State of Florida Department of Economic Opportunity and veto of the Legislature's request to extend funding for the Agreement into the State fiscal year 2016. OBJECTIVE: To obtain Board authorization to continue operation of a modified Soft Landing Business Accelerator Project in view of the eminent termination of the Grant Agreement with the State of Florida Department of Economic Opportunity, and veto of funding extension of the Agreement into the State's next fiscal year. CONSIDERATION'S: Staff recommends that the Board approve a modification to the Collier Soft Landing Business Accelerator Project funding plan that maintains the operation of the Western Accelerator at a scaled back level, retaining essential functionality with downsized equipment and operational costs. Staff assessment is that a full continuity of the original plan for the County's Soft Landing Business Accelerator Project including the Western Accelerator and Eastern facilities is not financially feasible without significant additional financial resources. Although the Immokalee project would be suspended for the time being, staff believes with collective efforts among our legislative delegation, County Commission, university and agribusiness partners, alternative funding strategies for this effort will emerge over the summer and fall. Background Since a September 10, 2013, Economic Development Business Plan was adopted, the BCC has established goals to include international business development and incubator /accelerator programs to foster a stronger economy. Policy direction from the November 26, 2013 and December 10, 2013 BCC meetings culminated in the May 13, 2014 approval of the Collier County Innovation Accelerator Business Plan including authorizing its implementation. Subsequently the County was awarded a $2,500,000 State of Florida Collier County Soft Landing Accelerator Grant (Grant) to develop a soft landing accelerator network focused on entrepreneurship and growing technology based companies that create quality jobs. Agreements with the State of Florida and Ell the Project's administrative entity were approved by the BCC on November 18, 2014, due to delays caused by implementing new state grant policy requirements. The delays prompted the County to seek an extension of the legislative funding appropriations into the State Fiscal Year 2016. That funding appropriation was approved at the legislative level, but was vetoed by the executive branch. Despite the aforementioned delays the Project launched in August, and has had encouraging results to date; over 13 fee paying technology based businesses including 6 of international origin, are participating in the Accelerator Program. Among those businesses participating, 7 are in residence (occupying offices) and 6 are non- resident and receiving assistance and other benefits of the Soft Landing .Accelerator services virtually. The ,Accelerator continues to receive 2 -4 inquiries per week, in addition to those produced by Global relationships produced from emerging French and German relationships. The Accelerator Project brings value to the local economy through the creation of jobs and the recruitment and mentoring of innovation companies. They will help to bring high value employment opportunities for citizens, attract new foreign direct investment, improve export opportunities for Florida companies, extend and expand the brand recognition the region currently enjoys, build new future for our young citizens who seek to stay in the region and build their own businesses. FISCAL IMPACT:. The financial plan for the Accelerator program was anchored by a $2.5m DEO grant and supported by operational income, private contributions and a funding commitment from Collier County. The grant provided approximately $1.8m toward developing the Accelerator facilities and approximately .7M to support Accelerator operating costs. The veto of the grant re- appropriation forces a reevaluation of the .Accelerator financial plan. Packet Page -2650- 9/8/2015 16.F.7. The recommended approach is to proceed with a downsized Western Accelerator facility as outlined in the foiiowing table. County funding already included in the current and FY16 proposed budget is approximately $500,000. Based on the downsized plan approximately $89,500 in new funding would need to be appropriated from Economic Development Fund (007) reserves or other sources deemed appropriate. This constitutes a rational approach with realistic assumptions that will allow the Project to continue with minimally increased County funding levels. Future funding sources will be sought to reintroduce the Eastern Culinary Kitchen Accelerator component. Description Notes FY 16 Continue Western Accelerator operations and facility development with a downsized staffing and facility improvement model Personnel Costs Director, Administrathoe Manager & FT Intern 295,000 Facility Operating Costs Rent, IT system, etc. 126,500 General Operating Costs Insurance, professional services, business seances, auditing, legal, etc. 123,200 Facility Improvements Site Improvements - Donated furniture & fixtures, shipping, installation and $50,000 furniture allowance along with design and installation for data, electrical, HVAC and lighting requirements 200,000 Total Expenditures 744,700 Business Income & Private Contributions 155.200 Less Grant Funding in FY15 Assumes all grant proceeds are applied to grant eligible costs incurred in FY15 - County Funding 1 589,500 Total Sources 1 1 744,700 GROWTH MANAGEMENT IMPACT: This request is consistent with Objective 3 of the Economic Element of the Collier County Growth Management Plan which states: "Collier County will support programs which are designed to promote and encourage the recruitment of new industry as well as the expansion and retention of existing industries in order to diversify the County's economic base." LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote for Board approval. — JAB RECOMMENDATION: Recommendation to continue operation of a modified Soft Landing Business Accelerator Project in view of the eminent termination of the Grant Agreement with the State of Florida Department of Economic Opportunity and veto of the Legislature's request to extend funding for the Agreement into the State fiscal year 2016. Prepared by: Bruce Register, Director, Office of Business and Economic Development Packet Page -2651- 9/8/2015 16.F.7. EXECUTIVE SUMMARY Recommendation to approve the proposed Collier County Innovation Accelerators Business Plan and authorize the County Manager to execute the Plan. OBJECTIVE: To obtain Board approval of the proposed Collier County Innovation Accelerators Business Plan included in the backup materials in this executive summary. CONSIDERATIONS: On September 10, 2013, (agenda item 11.C.), the Board approved the Office of Business and Economic Development's FY 2014 Business Plan. One of the work program objectives identified in the plan articulated the need to evaluate the potential for developing a local business incubator /accelerator as a tool to foster growth and development of emerging businesses in our community. Business accelerators are seen as having a positive economic impact on the community through the creation of jobs and the recruitment and mentoring of innovation companies. They will help to bring high value employment opportunities for citizens, attract new foreign direct investment, improve export opportunities for Florida companies, extend and expand the brand recognition the region currently enjoys, build new future opportunities for our young citizens who seek to stay in the region and build their own businesses, and create a synergy with the region's educational institutions. This project will be the first of its kind in the Southwest Florida region and will include community partners such as Florida Gulf Coast University, the Chamber of Commerce, venture capitalists and local business leaders. In pursuit of this objective, the County's state lobbyist firin, Fowler, White, & Boggs, was commissioned to provide a feasibility analysis and in turn subcontracted with Dr. Marshall Goodman on behalf of the County to assess the feasibility of creating a business incubator in Collier County. On December 10, 2013, (agenda item l O.C.) Dr. Goodman presented his Collier County Business Accelerator Feasibility Report to the County Commission. The Board voted unanimously to accept the report and further authorized staff to work with Dr. Goodman to develop a detailed Business Plan for the development of the business accelerators, as well as assist with efforts to secure an appropriation from the State Legislature to help advance the project. The proposed Innovation Accelerators Business Plan calls for the development of two business accelerators with distinctively different missions. One to be located in the western area of the county will focus on becoming one of 13 certified soft - landing Accelerators in the U.S. and will focus on recruiting companies primarily in the smart health, information technology and other knowledge -based industries. The second accelerator will be targeted towards the eastern part of the County centered around the community of Immokalee and will focus on culinary innovation and emerging food technologies within the agribusiness sector. The proposed business plan contains a 10 year projected pro -fonna that outlines revenue and costs analyses for the project. The pro -forma has been developed with the assumption that after a two year phased start-up and infrastructure building period, the Collier Accelerators will be largely self sustaining. A key revenue assumption in the start-up phase of the project is the Packet Page -2652- 9/8/2015 16.F.7. receipt of a $2.5 million budget appropriation from the State of Florida to provide seed capital for initial expenses such as leasehold improvements, equipment, initial lease payments and staff support. On May 2, 2014, the Florida Legislature passed the 2014 State Budget that contains $2.5 million for this venture. The budget is awaiting signature by the Governor. This State funding must be matched with local investments by the public and private /not for profit sectors. Specifically the business plan calls for an initial investment by the Board of County Commissioners of $250,000 a year in FY 2014 and FY 2015, and a sustaining pledge based on performance of $100,000 per year through 2023. Matching contributions from the private and /or non - profit sectors in the same amounts and duration will also be required. Contributions may include cash and in -kind contributions, such as subsidized space, equipment, supplies, and professional services. Fund - raising has informally commenced with very good progress towards achieving that goal. This approach insures that County investment along with private sector match will be effectively leveraged with state economic development funds, with future federal and private philanthropic grant opportunities aggressively pursued. The proposed Business Plan further recommends that CareerSource Southwest Florida (also known as the Southwest Florida Workforce Development Board) be contracted to serve as the administrative agent of the Accelerator project per county guidelines. This organization brings many advantages to this project from their expertise in employment and training, to the management of multiple facilities spread across the five county southwest Florida region, to their 501(c)(3) status that allows them to accept private sector contributions. CareerSource would have the responsibility to oversee and manage the facilities and administrative support functions associated with the Innovation Accelerators. The County Commission would serve as the policy board and fiscal agent for the project. The proposed Business Plan also recommends that the Commission appoint an Accelerator Advisory Committee composed of approximately I l public and private representatives to provide guidance, support, and expertise to the Accelerator project and provide a semi - annual report to the County Commission regarding Accelerator performance. FISCAL IMPACT: Funding in an amount not to exceed $250,000 in FY 2014 is budgeted in a dedicated economic development fund (007) for this project. Source of funding is the County's annual share of gaming receipts derived from the State's Gaining Compact with the Seminole Indian Tribe. The current fund balance before this proposed expenditure is $1,022,267. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. -JAK GROWTH MANAGEMENT IMPACT: The recommended action supports the goals and objectives of the Economic Element of the adopted Collier County Growth Management Plan. RECOMMENDATION: That the Board of County Commissioners: 1. Approve the proposed Collier County Innovation Accelerators Business Plan 2. Authorize the County Manager to spend up to $250,000 in FY 2014 to begin operations as outlined in the Plan. Packet Page -2653- 9/8/2015 16.F.7. 3. Authorize the Countv Manager to develop a contract proposal with CareerSource Southwest Florida for Board consideration to serve as the administrative agent for the accelerator project. 4. Authorize the County Manager to bring back recommendations for appointments to the Business Accelerator Advisory Committee composed of 11 public and private sector representatives to provide guidance, support, and expertise to the Accelerator project, per County guidelines. 5. Approve necessary budget amendments. Prepared by: Bruce Register, Director, Office of Business & Economic Development Attachments: A Business Plan for Collier County Innovation Accelerators Packet Page -2654- 71 !!!111 11111111liq 11,11ill Ill Prepared by: Marshall R. Goodman, Ph.D 1N3 Consultants March 31, 2014 Collier County Accelerator Business Plan Packet Page -2655- 9/8/2015 16.F.7. 9/8/2015 16.F.7. A Business Plan for Collier County Innovation Accelerators Introduction Collier County has a unique opportunity to develop in partnership with the private sector and the state of Florida, two focused and distinctive business accelerators targeted at entrepreneurs looking to expand their high growth companies through the development of new markets, new joint venture partners, investment resources, and synergistic spaces that allow them to efficiently and cost effectively grow their companies. In a previous "Accelerator Feasibility White Paper" prepared for Collier County, and in a study conducted by the Regional Economic Research Institute at Florida Gulf Coast University, it was found that more than sufficient demand exists for the establishment of incubators/ accelerators, and that they would bring forth a number of positives such as a stronger competitive region, increased access to expertise, resources, entrepreneurial education, greater foreign direct investment, increased attractiveness to venture capital, and the expansion of economic development efforts. Indeed, Collier County is very well suited to emerge as an established state staging portal for attracting entrepreneurs and international business development, as evidenced by the strong relationships the region has been building over the past year with the French government Collier County Accelerator Business Plan 2 Packet Page -2656- 9/8/2015 16. F.7. and French innovation firms interested in business development in Florida. In addition, Collier County offers a strong overall environment in terms of resources, expertise, and a high quality trained workforce for the establishment of the Accelerators: * Naples is currently ranked as the third wealthiest city in the U.S., and has emerged as one of the primary wealth management centers in North America. * The greater Naples community has a very high concentration of investment, legal, and international finance professionals. * Naples is home to the state of Florida's only Angel Investment Fund (Tamiami) which has demonstrated great success. * Collier County is home to the highest concentration of current and former Fortune 500 executives in the nation - one of whom is currently serving as Governor of the state. * Collier County is home to key industries such as hospital health care management, medical manufacturing, informational technology and enterprise software, and major agribusiness commercial operations. * Collier County and SW Florida have established themselves as a premier tourist, restaurant and entertainment destination, with a thriving hospitality marketplace. * The region is exceptionally well served with distinguished accredited institutions of Higher Education with multiple campuses, tens of thousands of enrolled students, professional and graduate degree Collier County Accelerator Business Plan 3 Packet Page -2657- 9/8/2015 16.F.7. programs, and specialized medical and healthcare programs such as University of Miami's Bascom Palmer Eye Institute, and the University of Florida NCEF Pediatric Dental Center. * Collier County also enjoys being a leader in the agribusiness research field and is home to the the University of Florida's Southwest Florida Research and Education Center, as well as a branch of their Institute of Food and Agricultural Sciences. Collier County Accelerator Business Plan 4 Packet Page -2658- 9/8/2015 16. F.7. f ;rtalc nnri Fimt Sterns: Creating an innovation EcoSystem In a succession of milestone decisions in 2013, the Collier County Commission passed by unanimous vote a series of new powerful and innovative economic development initiatives and strategies that would enable the county to launch a number of economic programs. Theses efforts are all aimed at greatly enhancing the employment opportunities and careers for Collier citizens. A recent Commission decision to support the conclusions of the "Collier County Accelerator Feasibility White Paper ", led the County to endorsed three recommendations: (1) to aggressively pursue a wide variety of sources of funding to build the long -term innovative infrastructure necessary to support start-up and soft - landing companies in the county and region; (2) work to develop a plan that would provide initial funding to begin operations; and (3) strategically pursue international linkage opportunities and partnerships in identified focal sector where Collier County has a clear and substantive comparative advantage. Following from the White Paper analysis, this business plan was commissioned to articulate a plan for the development of two distinctively different business accelerators in the County. One Accelerator to be located in Naples Florida, so that it could close to the heart of the business district. This Accelerator would be highly unique in that is would seek to be designated by the National Business Incubator Association as one of only 13 certified soft- landing Accelerators in the nation. This would require having a core mission that focused on the delivery of services to international companies seeking to enter the Florida and U.S. marketplace. Additionally, this Accelerator would seek to develop core competencies in key industry verticals where Collier County already has strength in terms of numbers Collier County Accelerator Business Plan 5 Packet Page -2659- 9/8/2015 16.F.7. of companies, entrepreneurs, and expertise. Two such areas would be in health technology and tourism and hospitality. The second accelerator would be targeted towards the eastern part of the County centered around the city of Immokalee, and built upon the world -class agribusiness that surrounds that area. This Accelerator would focus on culinary innovation and emerging food technologies within the agribusiness sector, devoted to the development of innovative and new food and beverage products, packaging and delivery. Having a positive economic impact on the communities being served is the primary goal of both Accelerators. Economic development and the creation of jobs must be their core mission through the recruitment and mentoring of innovation companies. In the end, the mission should be to create an innovation ecosystem for high growth companies so that they can develop relationships, partnerships, find venture capital, and take root in Collier County and Florida. The Accelerators would have a number of exceptionally positive outcomes and impacts on the local economy and the region in general including: • recruiting companies into Florida that create high value employment opportunities for its citizens • attracting foreign direct investment • improving export opportunities for Florida companies • extending and expanding the superb brand recognition the region currently enjoys • building new futures for young citizens who desire to stay in the region and build their own business Collier County Accelerator Business Plan 6 Packet Page -2660- 9/8/2015 16.F.7. * creating a synergy with the region's educational institutions; and serving as an important feeder into Florida Gulf Coast University's Innovation -Hub Research Park Collier County Accelerator Business Plan Packet Page -2661- 9/8/2015 16. F.7. Getting Started - First Steps Important first steps for the Accelerators would be to establish the following: 1. Strategic Plan A strategic plan that contains quantifiable objectives to achieve the program mission and measures the projected impacts and outcomes that include the following: A. A mission for each accelerator that defines the accelerators role in the community and that contains quantifiable objectives to achieve the program mission. B. Recruitment of Accelerator staff capable of achieving the mission of the accelerator and expertise in helping companies grow, with specific knowledge in soft - landing specialty services. C. Build an effective board of directors committed to the accelerators mission and to maximizing management's role in developing successful companies. D. Prioritize management time to place the greatest emphasis on client assistance, including proactive advising and guidance that results in company success and wealth creation. E. Develop accelerator facility, resources, methods and tools that contribute to the effective delivery of business assistance to client firms and that address the developmental needs of each company. Collier County Accelerator Business Plan 8 Packet Page -2662- 9/8/2015 16.F.7. F. Seek to integrate the accelerator program and activities into the fabric of the community and its broader economic development goals and strategies. G. Develop stakeholder support, including a resource network, that helps the accelerators program's client companies and supports the incubator's mission and operations. H. Maintain a management information system and collect statistics and other information necessary for ongoing program evaluation, thus improving the Accelerators effectiveness and allowing it to evolve with the needs of the clients. 2. Governance It is recommended that Collier County serve as the fiscal agent for the Accelerator project. All state, federal, and grant funds received for this project should be received by the Collier Board of County Commission and processed by the County Clerk's office. It is further recommended that a contract be negotiated for execution with CareerSource Southwest Florida to serve as the administrative agent for this project, with a proposed administrative fee not to exceed 5% of the proposed annual budget for the project. CareerSource Southwest Florida brings many advantages to this project from their expertise in employment and training, to the management of multiple facilities spread throughout the five county Southwest Florida area, to their 501(c)(3) status that allows them to accept private sector contributions. As administrative agent, CareerSource would have the Collier County Accelerator Business Plan 9 Packet Page -2663- 9/8/2015 16.F.7. responsibility to oversee and manage the day to day operations of the Accelerators, including but not limited to: the hiring and oversight of the Accelerator management and staff and all associated human resource functions, management of leases and related real estate issues, as well as oversight for all leasehold improvements and installations, the purchase of equipment and supplies, and the disbursement of resources and collection of rents and fees for service. It is recommended that the County Commission appoints an Ad Hoc Accelerator Advisory Committee composed of public and private representative to provide guidance, support, and expertise to the Accelerator project, and provide a semi - annual report to the Commission regarding Accelerator performance. It is recommended that 6 representatives of the public sector and 5 from the private sector and or non - profit sector make up this 11 person Committee. Suggested public sector representatives may include: County Commission Economic Development Chair Director of CareerSource Southwest Florida or designee University System Representative Collier County Public School System Representative Municipal Representative Regional Business Alliance Representative Suggested citizen representatives should include: An individual from the banking venture capital industry An individual from the development community An attorney familiar with international business law and /or trade A business representative from the greater Naples area A business representative from the Immokalee area Collier County Accelerator Business Plan 10 Packet Page -2664- 9/8/2015 16.F.7. 3. Services & Locational Needs of the Accelerators A. Naples Soft - landing Accelerator The Naples Accelerator should be built on one core philosophy: to provide an innovation ecosystem of professional support that helps businesses surpass their goals by providing a "soft- landing" of coordinated services and referrals. As noted previously, there are presently only 13 certified designated soft - landing accelerators in the nation, none of which are in Florida, so the Naples Accelerator can play not only a major role for the County, but for the State of Florida as well, serving as a "port of entry" for companies that can be later referred to the portion of the state that best suites their particular business model and needs. To achieve soft - landing certification by the National Business Incubator Association - which can be a two -year process with documented proof of provision of soft - landing expertise and services - it is imperative that the Accelerator has a well trained and experienced staff that maintains a global outlook and offers a wide -range of resources to its clientele. Services that may be provided would include, enterprise and business plan evaluation and diagnosis, commercialization feasibility studies, market channel analysis, pricing policies, integration of supply chains, cost analysis, and other business services that a global high growth clientele will need. As an accelerator geared towards high growth companies, the accelerator needs to be within a synergistic location, with premium information technology support services provided through a network of Collier County Accelerator Business Plan 11 Packet Page -2665- 9/8/2015 165.7. vendors that ensures that companies information technology needs are met. Rents need to reflect a full service model, that provides companies access not simply to space in which to operate, but to a range of services that makes it is easy for them to quickly and efficiently set -up operations and build their businesses. Rental agreements should range from 3 month contracts to a maximum of two years. No companies should be allowed to be incubated beyond the 2 year period without approval of the Accelerator Board, since the overall goal is for companies to use the Accelerator as a place to take root, not to become rooted, so that space can be freed up for the next company that needs support. A -1: Basic services to be provided should include: * Core office and standard office equipment, including furnishing. * A common reception area and message forwarding system. * A common conference room with state of the art conferencing capability that is at a Cisco telepresence level with robot or mobility capability. * A shared kitchen and full service break area with stocked refreshments and snacks, so as to invite 24/7 usage. * Professional support staff, including in -house web developer informational technology professional, and a soft - landing expert. Given the focus on high growth companies, world -class technology in the Accelerator is not just a desire, it needs to be a must have. The following type of informational technology services need to be supported: Collier County Accelerator Business Plan 12 Packet Page -2666- 9/8/2015 16.F.7. * Access to cloud services. * Access to a data center network. • Access to 3 -D Printing • Business continuity and disaster recovery • Access to 24/7 Information Technology Help Desk • Access to an Ecommerce website, shopping cart, and hosting services included as part of an Accelerator service bundle Perhaps most importantly, given its soft - landing designation the Accelerator needs to be able to provide either directly or indirectly (through referral at additional cost to the company) a host of soft - landing services including the following: • Translation services • Language training • Domestic market research and entry assistance • Introductions to financial capital and potential funders • Intellectual property protection assistance • Government regulation information and assistance • Import /Export laws and regulation assistance • Patent legal assistance • Facilitation is obtaining business and driver's licenses • Cultural training • Immigration and visa assistance • Housing assistance • Assistance with employment by assisting with the placement of trailing spouses or partners • Assistance with school selection and enrollment schedules A -2: Suggested Locational Needs for Naples Soft - Landing Accelerator Collier County Accelerator Business Plan 13 Packet Page -2667- 9/8/2015 16.1=.7. The suggested location and space needs for the Naples Soft- landing Accelerator include the following: 1. The location should have excellent access via major roadways and be close to the major business hubs within the region. 2. The location should have a "high tech" modern feel that will attract companies and have an overall "Silicon Valley" campus feel. 3. The location should be close to amenities such as restaurants, hotels, apartments, and shopping centers. 4. The location should have excellent access to high speed internet and cable networks. 5. The location and space must meet all ADA requirements. 6. The location must have an excellent security system and plan installed. 7. The space should be at least 3000 square feet expandable to 6000 square feet as demand requires. 8. The building and space must be accessible 24/7 to users. 9. The space should be in move -in ready condition, so that the Accelerator can get started as quickly as possible once funding has been approved and a staff hired. It is recommended that during any interim period, that the Accelerator staff be allowed to use space within the County's Economic Development offices. Collier County Accelerator Business Plan 14 Packet Page -2668- 9/8/2015 16.F.7. ►0. The space should be prewired for high speed data connections among a wide variety of users, and data closets. 11. The space should have from 6 -8 hard wall offices, space for kiosks that have the capability of accommodating multiple users, a conference room suitable for high tech presentations and a small reception area. 12. The space should meet a price -point for at least the first 2 years of operation of no more than $10.00 per square foot. 13. The building or location should be able to provide additional attractive amenities such as recreation facilities. B -1: Immokalee Culinary Accelerator Services & Locational Needs The Immokalee Accelerator needs to provide production and assembly space for culinary related businesses and provide shared office space in an FDA approved and state licensed facility. The Accelerator space should consist of a commercial kitchen with state -of -the art equipment divided into different work stations with adjoining flexible office space that allows for shared and co- working environments. The goal of the culinary kitchen is to meet the needs of: * Start -up food businesses in need of a licensed first facility * Home -based businesses that wish to legalize and grow their operation * Established businesses needing specialized kitchen equipment * Established businesses looking to grow or reach a new market Collier County Accelerator Business Plan 15 Packet Page -2669- 9/8/2015 16.F.7. * Food - Preneurs looking to experiment with new food products processes and test items * Food - Preneurs looking for a synergistic gathering place to meet other like minded individuals The Culinary Kitchen would utilize a large shared -use processing area that enables a wide range of food products to be produced such as vegetables, fruits, jams, jellies, soups, sauces, beverages, pies, cakes, breads, seasoning blends, entrees side dishes, and candies. The shared use area should be divided into 5 areas: The "cold- process" area which would be designated for the preparation and processing of produce in its raw state. Typical activities in this area would include post harvest preparation, cleaning, peeling, size reduction, and packaging all in a temperature controlled environment. The "hot process" area that would provide a range of process capabilities including blanching, steaming, cooking, roasting, and baking. The "dry process" area that would be devoted to equipment used for producing items such as fruit pies, breads, cookies and other baked goods, as well as seasoning blends, dehydrated fruits, vegetables, and herbs. A "cold assembly" area that would allow for limited packaging of refrigerated, frozen or ambient products, with sealing, labeling and shank wrapping equipment. Collier County Accelerator Business Plan 16 Packet Page -2670- 9/8/2015 16.F.7. A "Kosher" section that would be certified for certain types of food preparation that meet strict dietary requirements. Florida has the third largest jewish population in the nation, with the vast majority of that population living within a radius of 125 miles of the Immokalee facility, yet there are a very limited number of facilities catering to this populations culinary needs. As a result, this could become an important niche market for Accelerator producers. B -2: Locational Needs of Immokalee Culinary Accelerator 1. A warehouse style facility suitable and adaptable for the development of a culinary kitchen and capable of housing large pieces of equipment in at least 5,000 sq. ft expandable over -time to 8,000 sq. feet. A minimum of 1,000 sq. ft. should be shared office space. It is estimated that a warehouse space that meets basic requirements on power, sewer, and HVAC systems, would require an investment of $1,300,000 to make necessary improvements, purchase and install equipment, and receive licensing approvals. 2. A facility in close proximity to major roadways, airports and convenient access to urban areas, that is strategically situated to serve businesses throughout the SW Florida region. 3. A loading dock or level access doors and the ability for small and medium vans and trucks to enter and exit the facility with ease. 4. A facility that has excellent security. 5. A facility where state -of- the -art fire safety equipment and systems can easily be installed. Collier County Accelerator Business Plan 17 Packet Page -2671- 9/8/2015 16.F.7. 6. A facility that is ADA accessible. Collier County Accelerator Business Plan 18 Packet Page -2672- 9/8/2015 16.F.7. i,CCeier ator Revenue and Cost Analysis In Attachment A is a 10 year Pro Forma that articulates a revenue and cost analysis for the Accelerator Project. Typically business accelerators require start-up funds and time - time to recruit member companies, develop services, and establish critical feeder linkages and relationships. This period can typically take anywhere from 18 -24 months before incubators /accelerators achieve a form of sustainability, although most incubators /accelerators even after this period require some form of public and private support. Indeed, more than 90% of the nation's current incubators according to the National Business Incubator Association receive some form of ongoing local government/community financial support. The Accelerator Project Pro Forma has been developed with the assumption that after a two year phased start-up and infrastructure building period, the Collier Accelerator's must be largely self - sustaining, with positive cash flow, and positive end of the year fund balances. These balances can serve both as reserves and for future matching funds for additional public and private grant programs that likely will present themselves in the future. The Pro Forma has been built based on the following assumptions: 1. That Collier County would make an initial investment of $250,000 a year in Fiscal Year 2014 and Fiscal Year 2015, and a sustaining pledge based on performance of $100,000 per year for FY 2016 -2023, with the understanding that the current Commission cannot authorize funds beyond the current fiscal year. 2. That Collier County and regional SW Florida private and non- profit sectors would be asked to match the County's contribution Collier County Accelerator Business Plan 19 Packet Page -2673- 9/8/2015 16.F.7. 0-1'$250,000 in cash or in -kind contribution for the first two years, $150,000 in FY 2016, and a sustaining contribution of $100,000 per year for FY 2016 -FY 2023. 3. There is a clear expectation that the Accelerator staff would participate and help to lead fund - raising efforts and write and annually submit competitive grant applications for additional financial resources and support. Over a ten year period it is expected that fund - raising through grants, sponsorships, and endorsements would contribute $1,600,000 to the operation of the Accelerators. 4. That the State of Florida would match the contributions of Collier County and the private and non - profit sectors with a $2.5 million grant in FY 2014. These funds would be allocated wlth $2,000,000 going towards leasehold improvements, equipment, initial lease payments, and costs associated with meeting all applicable federal, state and local standards and licenses. The remain ing$500,000 will be used as seed funds for recruiting and hiring a professional Accelerator staff in the first two years of operation. Hired staff would need to recognize that after the 2 year period of seed money is utilized that their employment tenure is dependent on the Accelerators meeting their financial milestones. It is expected that of the $2,000,000, the Immokalee Accelerator would be allocated $1,300,000 for construction and equipment, and the Naples Accelerator would be allocated $700,000 for equipment and furnishings. Collier County Accelerator Business Plan 20 Packet Page -2674- 9/8/2015 16. F.7. 5. That the Naples IT Accelerator would seek to begin operation as soon as June 2014, and therefore would have 6 months of lease income in FY 2014. It is recommended that the Collier County Commission and County Manager release 50% of the requested $250,000 allocation immediately so that a contract with CareerSource acting as the Administrative unit can be negotiated and the process of hiring staff, securing a lease, and marketing the incubator can begin in earnest. 6. It is estimated that the Immokalee Accelerator would require an estimated 6 months of remodeling and equipment installation and that it would not be operational until January 2015 at the earliest, and therefore would contribute no income towards operations in FY 2014. 7. That the staff for the Accelerator project would be phased in over a two -year period, and would reach a compliment of 8 full -time staff members assisted by various part-time and student intern employees. These individuals would serve both Accelerator facilities and be available to regional partners. Several staff would have their permanent offices at one or the other facilities, and would move freely between both facilities as the work dictated. It is recommended that the first hires be the Executive Director, the Director of Soft - Landing Services, a Web Developer, and a Information Technology Support Specialist who would primarily be based out of the Naples Accelerator. Given industry standards and the competitive nature of several of these positions, it is expected that these position will be funded with a mixture of public, private, and income generated dollars. Collier County Accelerator Business Plan 21 Packet Page -2675- 9/8/2015 16.F.7. A second phase of hiring commencing in early FY 2015 would seek to fill 3 position at the Immokalee Accelerator: Manager Immokalee Accelerator, Director of Facilities & Compliance, and Maintenance Specialist. The final hire in FY 2015 will be a Regional Global Soft Landing expert with strong international experience in market areas important to the region and the state. 8. All personnel salaries in the pro forma were matched with current Collier County classification rates of pay, and benefits were calculated to align themselves with best practice. All salaries in the pro forma are adjusted for inflation over the 10 year period. 9. All operating costs are based on normal industry standards, and factor in subcontracting out on a competitive base the cost of providing 24/7 information technology backup, security, help desk and maintenance for member companies. All operating costs in the pro forma are adjusted for inflation over the 10 year period. 10. Rental rates are subject to meeting requirements where the Naples Accelerator lease costs do not exceed a projected $10 sq. foot in FY14 -15, and in Immokalee do not exceed $2 sq. foot in FY 15 -16. 11. Member rates for space at the Naples Accelerator are dependent on the cost of the lease and maintenance. Lease rates include use of space and all services of the accelerator, except for virtual members who will only be charged for use of services. It is expected that a range of membership plans will be proffered to companies based on their desire for a single office, shared office kiosk, or shared kiosk. Rates for use of space and Collier County Accelerator Business Plan 22 Packet Page -2676- 9/8/2015 16.F.7. equipment at the lmmokalee Accelerator will be based on an hourly charge of use set annually. Individuals may select among several pay plans or purchase blocks of time at a reduced rate. It is recommended that market competitive rates be used which currently are between $15 -$20 per hour dependent on the type of equipment being utilized. For purposes of this Pro Forma, an average rate of $10 per hour was used in the calculation. 12. An assumed interest rate on end fund balances was used that ranged from .5 % -2% over the 10 year period and an inflation rate on all personnel and operating costs ranged from 2 % -3% over the 10 year period. 13. Lease income for the Accelerators increases steadily over the years as the Accelerators fill -up with clients and attract more users and take on additional space with corresponding increases in operating costs. In its fifth year of full operation it is projected that the Accelerators will apply for and receive a Federal award of $3,000,000 to move into a permanent Accelerator building as part of a larger innovation project within the County. The Accelerator would use $1,000,000 from its fund balance as a match to complete this $4 million project, that greatly increases the number and variety of companies it can serve. Analysis The pro forma revenue and cost analysis shows that with the help of the seed funding from the County, the State, and the private and non - profit sectors, that after the second year of operation, the Accelerators will be generating a net positive cash flow. The Accelerators starts out with a positive end fund balance (FY14: $767,886) and sustains and increases Collier County Accelerator Business Plan 23 Packet Page -2677- 9/8/2015 16.F.7. these strop g levels with the only dip in FY19 ($207,267) due to a $1,000,000 contribution towards the construction of a new facility, but quickly recoups those strong balances in subsequent years. Over the 10 year period, personnel costs will average $793,033 per year with operating costs averaging $458,151 per year for a total of $1,251,184 in combined expense. Projected income from leases over this period averages $953,237, with an additional average of $161,500 being generated from fees for services that the Accelerator would earn from additional services provided to area companies for an average annual revenue total of $1,114,737. This would mean an annual deficit of $136,447 that would need to be raised, which underscores the continuing importance of public, private, and non - profit fund - raising to the Accelerator. This type of sustained investment by the community offers a superb Return on Investment (ROI) based on an econometric analysis performed by the Southwest Florida Regional Planning Council (SWFRPC) utilizing a standard Regional Economic Analysis Program known as a REMI analysis. SWFRPC was asked by Collier County's Business and Economic Development Office to analyze sets of projected employment, equipment purchases, and construction data over a 10 year period for both the Naples Soft - Landing Accelerator and the Immokalee Culinary Incubator. The REMI results are shown in Appendix Number B and C. The Culinary Incubator would generate 63 new direct jobs, would create 48 indirect jobs and induced jobs for a total of 174 new jobs in Collier County. The soft - landing Accelerator would create 149 new direct jobs, plus an addition 54 indirect and induced jobs for a total of 203 new jobs. Together, the two Accelerators create 377 total jobs. These jobs Collier County Accelerator Business Plan 24 Packet Page -2678- 9/8/2015 16. F.7. generate a total of $22.97 million in new personal income during this 10 year period. In addition, the REMI analysis shows that the Culinary Incubator would generate after a 10 year period $17.7 million to the Gross County Product (GCP) which is a measure analogous to the national Gross Domestic Product. The Soft - landing Accelerator would contribute an additional $18.37 million during this period for a total of $36.07 million generated in Gross County Product. Given these REMI numbers one can calculate an ROI based on a total county investment of $1,300,000 over the 10 year period of $27.74 to $1 dollar invested in terms of GCP, and $17.66 to $1 dollar invested in personal income. As for the state investment of $2,500,000, the Accelerators ROI in terms of GCP is $14.42 to every $1 dollar of state investment and is $9.1 for every $1 invested in terms of personal income. These rates of return on Incubator /Accelerator investments are highly consistent with national standards. Marketinq and Linkage Plan A number of strategies should be utilized to market the Accelerator, locally, state -wide and internationally and link it a number of regional organizations. 1. Develop national and international linkages and networks between incubators and accelerators that create a "conveyer belt" of prospective companies into the Accelerators. Work in that regard, has already begun with great success by connecting the region to the French Innovation Network (RETIS), and Collier County Accelerator Business Plan 25 Packet Page -2679- 9/8/2015 16. F.7. development of a joint marketing and programming with a mirror region (ex: South of France). Future countries should include Florida's major trading partners (Canada, United Kingdom, Germany Brazil) as well as strategic partners of the future such as India and China. 2. Hire an in -house Web Developer whose responsibilities include the development of web pages, and the development of a social media strategy and implementation. Both the Accelerator and its member companies would be aggressively marketed through these avenues. Local high school and college interns would also be employed in this regard. 3. Participate in the national and state organizations dedicated to the promotion and linking of incubators and accelerators with one another. Organizations such as the National Business Incubator Association, the Florida Business Incubation Association, and Enterprise Florida. In addition, participation in key trade meetings such as the annual Consumer Electronics Show are wonderful opportunities to highlight the Accelerators and their member companies. 4. Management staff of the incubator would be expected to routinely speak before local and regional groups and organizations, and become active in state -wide incubator /accelerator associations. Additionally, some of the best marketing can occur through linking the Accelerator with other organizations that have similar interests and goals. The following strategies should be utilized: Collier County Accelerator Business Plan 26 Packet Page -2680- 9/8/2015 16. F.7. 1. Through coordination with the Collier County Economic Development Office, the Accelerator staff should be in contact with all of the Economic Development directors and their staff throughout the region, and semi - annually give a presentation to these directors regarding progress made and important updates. 2. Designation of educational institutions within the region as a Strategic Partner. As a strategic partner, higher education institutions to the degree possible, would assist member companies with their research questions and needs, link companies with faculty, staff, and students, support the promotion and marketing of the accelerator, and participate in joint grant project opportunities. 3. The Accelerators should work in close contact with organizations such as the Greater Naples Chamber of Commerce, the Southwest Regional Planning Council, and the emerging regional partnership organizations to coordinate their activities and market their services Collier County Accelerator Business Plan 27 Packet Page -2681- 9/8/2015 16. F.7. Suggested Milestone Tii i"`ieiii �e A suggested milestone timeline for the development and start -up of the two Accelerators is presented below. 5/2014 Collier County Votes on FY2014 Accelerator Business Plan and Funding Request 6/2014 Collier County Receives Notification of State Funding 6/2014 Collier County Approves Accelerator Administrative Contract 6/2014 Administrative Agent Hires Accelerator Executive Director 6/2014 Private and Non - Profit Sector Fund - Raising Campaign Commenced 7/2014 Collier County Creates Accelerator Advisory Board Committee and Make Initial Appointments 7/2014 Acquisition of Naples and Immokalee Leased Space Commenced 8/2014 Lease Contracts For Naples and Immokalee Space Finalized 8/2014 Naples Accelerator Soft Opening 8/2014 Phase 1 Accelerator Staff Hired 9/2014 Immokalee Engineering Construction Plan Completed 10/2014 Naples Accelerator Grand Opening 12/2014 Phase 2 Accelerator Staff Hired 1/2015 Immokalee Accelerator Soft - Opening 4/2015 Immokalee Grand Opening Collier County Accelerator Business Plan Packet Page -2682- 28