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2020-12-23 MMSBG Fresh Face Aesthetics, LLC Item#12. E IDIAN:-�- IDAHO C� MEMO TO CITY COUNCIL Request to Include Topic on the City Council Agenda From: Tori Cleary, Community Development Meeting Date: December 22, 2020 Presenter: Tori Cleary Estimated Time: 0.0 Topic: Approval of Grantee Agreements for the Meridian Small Business Grant Program Recommended Council Action: Approve 20 Grantee Agreements for the Meridian Small Business Grant Program. The following Grantees have been approved through the Municipal Small Business Grant Program made possible through Coronavirus Aid, Relief, and Economic Security Act (CARES) Act funding. The Grantees, grant amounts, and grant purposes are listed below: Case Name AmountPPE Testing Invent. Equip. Rent Utilities tither Approved Alma Sports $6,770.20 X X Remote 24/7 Entry Dreamland Learning Center $10,000.00 X Fresh Face Aesthetics LLC $2,750,00 X Idaho TV 22 LLC $3,034.08 X X Memorable Moments R Us $1,641.95 X Touchless Photo App Salon G $10,000.00 X X Small Hands LLC $3,171.00 X UV,Fi€tration The Learning Garden Children's Center $3,006.81 X K&L Affairs LLC dba F45 Meridian West (Amendment) $5,000.o0 X Larson Enterprises LLC (Amendment) $5,000.00 X McTime,Inc.(Amendment) $5,000.00 X MS Administrative Services,Inc. (Amendment) $5,000.00 X Phoenix Fire Games (Amendment) $5,000.00 X Primetime Child&Family Education Center(Amendment) $5,748.63 X RS Physical Therapy (Amendment) $5,000.00 X Silverstone Properties LLC(Amendment) $5,000.00 X SLID LLC(Amendment) $4,856.95 X Sports Fan Corp dba Pro Image Sports(Amendment) $5,000.00 X Treasure Valley Strength&Conditioning LLC(Amendment) $5,000.00 X TV Meridian Pita LLC(Amendment) $5,000.00 X Background: This is the fourth group of Agreements for approval under the Meridian Small Business Grant Program, created through the City Council designation of$1 million of the City's CARES Act funding allocation. Following staff review of applications and confirmation of business/organization eligibility and documentation of qualifying business expenses,grant applications are sent to a Review Committee comprised of the Chief of Staff, Finance Director, and a representative from the Chamber of Commerce Economic Development Committee. Page 340 Item#12. While the State Controller's Office approved the City's program parameters and eligibility criteria, the City has chosen to secure State approvals and funding for each application prior to releasing funds to grantees. Previously,Agreements have been submitted for Council approval following State approval. In an effort to expedite the lengthy approval process, staff is recommending these Agreements for approval prior to receiving State approval and funding. The Agreement stipulates that the City's obligation is provisional and funding is subject to State approval and release of CARES Act funds to the City. This provision allows the Council to approve these Agreements and avoid additional delays in disbursing funds to businesses. Upon State approval and funding and City execution, draw requests will be submitted to the Finance Department for grant disbursements. This is also the first group of approvals that includes Amendments to original Agreements. The City Council increased the maximum grant amount to $15,000 on November 24, allowing previously-approved applicants to apply for additional funding for qualifying expenses that had not been reimbursed previously.All provisions of the master Grant Agreement remain in effect, including the provisional approval mentioned above. Page 341 Item#12. AGREEMENT BETWEEN CITY OF MERIDIAN AND FRESH FACE AESTHETICS LLC FOR IDAHO REBOUNDS—MUNICIPAL SMALL BUSINESS GRANT FUNDS This Agreement is entered into this 22nd day of December, 2020 by and between the City of Meridian, a municipal corporation organized under the laws of the state of Idaho ("City") and Fresh Face Aesthetics LLC, a limited liability company organized under the laws of the State of Idaho ("Grantee"). WHEREAS,having received federal financial assistance, as such term is defined in 2 CFR § 200.40, from the Coronavirus Relief Fund, designated within Title V, section 5001 of the Coronavirus Aid, Relief, and Economic Security Act, P.L. 116-136, 42 U.S.C. § 601 et seq. (the "CARES Act"), the State of Idaho ("State") created the Idaho Rebounds—Municipal Small Business Grant("MSBG") program to help local businesses and organizations affected by COVID-19 pandemic, enabling cities and counties to provide aid within their community, including by the provision of economic support to those suffering from employment or business interruptions due to COVID-19-related business closures or limitations; and WHEREAS,pursuant to the State's approval of Meridian's MSBG program on September 11, 2020, City seeks to disburse MSBG funds to Meridian small businesses for the reimbursement of expenses incurred due to the COVID-19 pandemic, as set forth in Title V, section 5001 of the CARES Act; Idaho Governor's Executive Order Nos. 2020-07, 2020-08, and 2020-08A; U.S. Treasury's Coronavirus Relief Fund Guidance for State, Territorial, Local, and Tribal Governments (Dated June 30, 2020); Idaho Rebounds—Municipal Small Business Grant Program Description and Guidance; and the City's MSBG program guidelines (collectively, "MSBG Rules"); and WHEREAS, Grantee submitted to City a complete application for MSBG funds, including all related materials; and City and Grantee wish to enter into a cooperative agreement for the investment of MSBG funds for the purposes described therein; and WHEREAS, it is acknowledged by the Parties that although the State has approved the Meridian MSBG program and has generally committed the funds as set forth in this Agreement for such purpose, availability of these funds to City, and thus to Grantee, is subject to the State's approval of Grantee's application and release of such funds to City, and that City's obligation to provide funding to Grantee under this Agreement is provisional,pending the approval and release of such funds to City; NOW, THEREFORE, in consideration of the mutual covenants of the parties, the Parties agree as follows: I. STATEMENT OF WORK A. Activities. Grantee shall use City's MSBG funds in an amount not to exceed Two Thousand, Seven Hundred, Fifty Dollars ($2,750.00), for the approved expenses, as set forth in Exhibit A. Grantee shall utilize MSBG funds granted hereunder in a manner consistent with this Agreement, the MSBG Rules. B. Current eligibility. Grantee certifies that Grantee is eligible to receive MSBG funds, and that MSBG GRANTEE AGREEMENT PAGE 1 page 352 Item#12. Grantee meets each of the following criteria: 1. Grantee has 500 or fewer employees. 2. Grantee is a business operating in the City of Meridian, Idaho city limits. 3. Grantee has an official EIN. 4. Grantee is an Idaho-domiciled business. 5. Grantee incurred and paid the expenses for which the MSBG funds are awarded. 6. Grantee has incurred expense caused by COVID-19 related incidents, decisions, or qualified business interruption (e.g., local closure orders, need for personal protective equipment, social distancing requirements, increased costs, disrupted supply network, etc.). 7. The expenses for which the MSBG funds are awarded were incurred between June 20, 2020 and December 30, 2020. 8. Grantee has not received funds for the expenses for which the MSBG funds are awarded from other COVID-19 grant programs. 9. Grantee does not exist for the purpose of advancing partisan political activities or the business does not directly lobby federal or state officials, defined as having had a registered lobbyist at any point during 2020. 10. Grantee is compliant in all respects with all COVID-19 related orders, laws, ordinances, and regulations. C. Ongoing eligibility; duplication of benefits. Grantee shall notify City immediately if, for any reason, Grantee no longer qualifies for MSBG funds due to a change in compliance with one or more of the enumerated eligibility criteria. If Grantee receives or applies for other funding sources for the expenses described in this Agreement, Grantee shall immediately notify the City's Economic Development Administrator. D. Reimbursement Procedures. City shall provide to Grantee the MSBG funds awarded for the approved expenses, as set forth in Exhibit A, up to ten thousand dollars ($10,000.00),within thirty (30) days of receipt of the specified funds by City. E. Disclosure and retention of records. Grantee acknowledges and understands that records submitted for the purposes of applying for MSBG funds; compliance with the terms of this Agreement or law; and/or audit by City, State, or federal agency shall be public records subject to disclosure by City and/or State pursuant to such agencies' respective obligations to comply with the Idaho Public Records Act("IPRA"), and may be posted online by the State of Idaho. Insofar as such records are exempt from disclosure under IPRA or other provision of law, City shall make reasonable efforts to avoid and/or prevent their disclosure. Grantee shall retain all records pertinent to the expenditures incurred under this Agreement for a period of five (5) years after completion of all activities funded under this Agreement. The name of the business and the amount of grant funds received will be identified on the transparent.idaho.gov website and on the City of Meridian's Economic Development webpage, and may be disclosed upon request in accordance with the Idaho Public Records Act. II. GENERAL CONDITIONS A. Contingent on funding. It is acknowledged by the Parties that although the State has approved the Meridian MSBG program and the State has generally committed the funds as set forth in this Agreement for such purpose, availability of MSBG funds to City, and thus to Grantee, is subject to the State's approval of Grantee's application and release of such funds to City. Unless and until MSBG GRANTEE AGREEMENT PAGE 2 page 353 Item#12. the State approves Grantee's application and releases the funds to City, City shall have no contractual, legal, or equitable obligation to Grantee, whether under this Agreement or by any other legal or equitable claim. In the event that MSBG funds for the purposes set forth in this Agreement are not made available to City, this Agreement shall be void, and City shall have no obligation to Grantee, whether under this Agreement or under any legal or equitable claim. B. Notices. All notices required to be given by either of the parties hereto shall be in writing and be deemed communicated when personally served, or mailed in the United States mail, addressed as follows: If to City: If to Grantee: City of Meridian Fresh Face Aesthetics LLC Attn: Economic Development Administrator Attn: Ashley Johnson, Governor/Registered Agent 33 E. Broadway Avenue 82 S. Baltic Avenue Meridian, Idaho 83642 Meridian, ID 83642 Either party may change its authorized representative and/or address for the purpose of this paragraph by giving written notice of such change to the other party in the manner herein provided. C. Indemnity. Grantee, and each and all of its employees, agents, contractors, officials, officers, servants, guests, and/or invitees shall hold harmless, defend and indemnify City from and for all losses, claims, actions, liabilities, and/or judgments for: damages or injury to persons or property and/or losses and expenses caused or incurred by Grantee and/or its employees, agents, contractors, officials, officers, servants, guests, and/or invitees; and other costs, including litigation costs and attorneys' fees, arising out of, resulting from, or in connection with the performance of this Agreement and not caused by or arising out of the tortious conduct of City or any employee, contractor, or agent thereof. Grantee acknowledges that participation in this program carries risks, some of which may be unknown, and does agree to assume all such known or unknown risks. D. Uniform compliance requirements. Grantee shall comply with applicable uniform administrative requirements, cost principles, and audit requirements for federal awards, as described in 2 CFR §§ 200 et. seq. E. Nondiscrimination. Grantee will not discriminate against any employee or applicant for employment or services because of race, color, creed, religion, ancestry,national origin, sex, disability or other handicap, age, marital status or status with regard to public assistance. F. Termination. Either Party may terminate this Agreement for cause by providing written notice to the other of the basis of termination. The defaulting Party shall have five (5) days to cure the deficiency or non-compliance. If the deficiency or non-compliance is not cured within this time period, the other Party shall terminate this Agreement for cause. In addition to termination of this Agreement and/or any other remedies as provided by law, City may declare Grantee ineligible for any further participation in City grant programming. 1. Termination for convenience. City may terminate this Agreement by, at least thirty(30) days before the effective date of such termination, giving written notice to Grantee of such termination and specifying the effective date thereof. 2. Termination for cause. Termination of this Agreement, in whole or in part, may occur for cause, which shall include, but shall not be limited to, the following: a. Failure to comply with any provision of this Agreement, the MSBG Rules, or any rule, MSBG GRANTEE AGREEMENT PAGE 3 page 354 lation,statute,executive order,or U.S.Treasury,State,or City guideline,policy or Item#1JJ,tivebecome applicable at any time; re to fulfill in a timely and proper manner its obligations under this Agreement; c. per use of funds provided under this Agreement;or d. Submission of receipts,reports,or documents that arc incorrect or incomplete in any material respect. 3. Void if funds not available. In the event that MSBG funds for the purposes set forth in this Agreement are not made available to City,this Agreement shall be void,and City shall have no obligation to Grantee,whether under this Agreement or under any legal or equitable claim. G. Repayment. In the event of termination for cause attributable to Grantee's acts or omissions, Grantee shall,within fourteen(14)days of City's demand,reimburse City for all MSBG funds disbursed. H. Assignment. Grantee shall not assign or transfer any interest in this agreement without prior written consent of City. I. Non-waiver. Failure of either party to promptly enforce the strict performance of any term of this Agreement shall not constitute a waiver or relinquishment of any party's right to thereafter enforce such term,and any right or remedy hereunder may be asserted at any time,notwithstanding delay in enforcement. J. Compliance with law. Throughout the course of this Agreement,Grantee shall comply with any and all applicable federal,state,and local laws. YL Exhibits. All exhibits to this Agreement are incorporated by reference and made a part of hereof as if the exhibits were set forth in their entirety herein. L. Entire Agreement. This Agreement contains the entire agreement of the parties and supersedes any and all other agreements or understandings,oral or written,whether previous to the execution hereof or contemporaneous herewith.The parties hereto may amend this Agreement at any time provided that such amendments are executed in writing,approved by City's governing body,and signed by a duly authorized representative of each party. IN WITNESS WHEREOF,the parties shall cause this Agreement to be executed by their duly authorized officers to be effective as of the day and year first above written. GRANTEE: Fresh Face thetics LLC Asliky-j'oh6so4 dov&nor egistered Agent CITY: City of Meridian Attest: By.Robert E.Simison,Mayor Chris Johnson,City Clerk MSBG GRANTEE AGREEMENT PAGE 4 Page 355 Scanned with CamScanner Item#12. EXHIBIT A: APPROVED EXPENSES Elig;ble Expense Amount July Rent 550.00 August Rent 550.00 September Rent 550.D0 October Rent 550_00 November Rent 550_DO Total Eligible Expenses 2.750.00 GRANT AWARD 5 ,750.00 MSBG GRANTEE AGREEMENT PAGE 5 Page 356