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Home My WebLink AboutContract 44763-A1 ` _1ECEIEb CITY SECRETAIW o n Jit -g 2G15 y CONTRACT NO. LW-1 F�TT AMENDMENT NO. 1 TO C' IRR RYA AGREEMENT BETWEEN THE CITY OF FORT WORTH AND `9 THE BAC EDUCATION FOUNDATION FOR LEASE OF GUINN ELEMENTARY SCHOOL BUILDING AND OPERATION OF BUSINESS INCUBATOR This AMENDMENT NO. 1 TO AGREEMENT FOR LEASE OF GUINN ELEMENTARY SCHOOL BUILDING AND OPERATION OF BUSINESS INCUBATOR ("Amendment") is entered into by and between the CITY OF FORT WORTH (the "City"), a home rule municipal corporation organized under the laws of the State of Texas, and the BAC EDUCATION FOUNDATION, INC. (the "Foundation"), a Texas non-profit corporation. WHEREAS, the City and the Foundation previously entered into that certain Agreement for Lease of Guinn Elementary School Building and Operation of Business Incubator, a public document on file in the City Secretary's Office as City Secretary Contract No. 44763 (the "Agreement"), which Agreement refers to the Foundation in places as the "Fort Worth Business Assistance Center Education Foundation, Inc."; and WHEREAS, under the Agreement, the Foundation manages and operates a business incubator in the former Guinn Elementary School Building located at 600 East Rosedale Street in order to benefit the City in economic development,job creation and the stimulation of technology commercialization activities; and WHEREAS, under the Agreement, the City also provides the Foundation with annual funding in the amount of $100,000.00 from its agreement or agreements with the University of North Texas Health Science Center (UNTHSC) for use of certain grant funds from the State of Texas appropriated for the purpose of funding the City's economic development,job creation and technology commercialization programs; and WHEREAS, under Section 7.2 of the Agreement, the City's funding is to be paid in four quarterly installments of $25,000.00 each, based on the City's fiscal year, which is October 1 through September 30; and WHEREAS, because the State of Texas's fiscal year runs from September 1 through August 31 and all grant funds under the UNTHSC contracts must be incurred by the end of the State fiscal year in which they are received, the City wishes to amend the Agreement to revise the time frame in which the City will pay the Foundation such funds and in which the Foundation will report its activities and expenditures with respect to such funds; NOW, THEREFORE, in consideration of the mutual covenants, obligations and responsibilities set forth in the Agreement, the City and the Foundation hereby agree as follows: Page 1 KOFFICIAL RECORD Amendment No. 1 to Agreement for Lease of Guinn Elementary School Building and CRETARYOperation of Business Incubator(City Secretary Contract No.44763) RTH, TX 1. The second paragraph of Section 7.2.1 of the Agreement (UNTHSC Grant) is hereby amended to read as follows: Each year thereafter for so long as this Agreement is in effect, and conditioned on receipt of sufficient funds from UNTHSC pursuant to the Grant Agreement, the City will transfer $100,000.00 to the Foundation, to be disbursed in 2 installments of $50,000.00 each, payable by the City to the Foundation as of January 1 and June 1 of each year,commensurate with the State fiscal year in which such funds were received. The funds paid by the City to the Foundation under this Section 7.2.1 will collectively be referred to herein as the "Grant Funds." 2. The second paragraph of Section 7.2.2 of the Agreement (Reports) is hereby amended to read as follows: On or before January 31 and June 30 of each year, the Foundation must also provide the City with a detailed report, in a form reasonably acceptable to the City, that outlines the expenditure of Grant Funds made by the Foundation from (i)June 1 through December 31 (for the January 31 report) and (ii) January 1 through May 31(for the June 30 report). Each report must also include supporting documentation and records reasonably required by the City to verify such expenditures. 3. All terms and conditions of the Agreement that are not expressly amended by this Amendment will remain in full force and effect. 4. This Amendment constitutes the entire agreement of the City and the Foundation as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Amendment. EXECUTED as of the last date indicated below: CITY OF FORT WORTH: BAC EDUCATION FOUNDATION, INC., a Texas non-profit corporation: i By: By: David C , :e Lucas A. Sawyer City Manager Title:,-"' OFFICIAL RECORD CITY SECRETARY Date: 7 Z�l� Date: a zoiS FT. WORTH TX rC PVvKr �i01f c L� A j I C� A byo Q aRM AND LEGALITY: ar J. Ka r, City ,po —Page T A' r,-2371f 6-z�� oo� oo Amend'nt No'N And eA oRRt oi>Guinn Elementary School Building and „C, A� Operation of Business Incubator(City Secretary Contract No.44763) ori a~Tact Author i natio RAS':. X X City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 6/2/2015 DATE: Tuesday, June 02, 2015 REFERENCE NO.: **C-27314 LOG NAME: 17ED BACEFOPERATfNGAMENDI SUBJECT: Authorize Execution of Amendment No. 1 to the Lease and Operating Agreement with the BAC Education Foundation, Inc., to Manage and Operate the Former Guinn Elementary School Building Located at 600 East Rosedale as a Business Incubator (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council authorize the execution of Amendment No. 1 to the Lease and Operating Agreement with the BAC Education Foundation, Inc., to manage and operate the former Guinn Elementary School Building located at 600 East Rosedale as a business incubator to amend the payment schedule. DISCUSSION: On June 4, 2013, the City Council authorized the execution of a Lease and Operating Agreement (M&C L-15561, City Secretary Contract No. 44763) with The BAC Education Foundation, Inc. (Foundation), for the purpose of managing and operating a business incubator in the former Guinn Elementary School Building located at 600 East Rosedale. The City Council also authorized a transfer to the Foundation in the amount of$100,000.00 in grant funds available through the City's Agreement with the University of North Texas Health Science Center (UNTHSC) for the purpose of economic development,job creation and technology commercialization activities (M&C C-25800) and specifically for start-up capital for the business incubator. The terms of the Operating Agreement between the Foundation and the City allowed for the transfer to the Foundation of a lump sum in the amount of$100,000.00 in UNTHSC grant funds as incubator start-up capital and $100,000.00 in UNTHSC grant funds each subsequent year, contingent upon grant fund availability. The annual transfer of UNTHSC grant funds were to be dispersed in four quarterly installments in the amount of$25,000.00 beginning each January to help subsidize incubator operations. Due to the timing of the State's Fiscal Year ending on August 31 st, the final two payments due under the Operating Agreement would not be paid to the Foundation until after the end of the State's Fiscal Year. In order to reconcile the timing of the grant and ensure that State funds are expended during the grant biennium, Staff recommends amending the Operating Agreement to provide two annual payments of$50,000.00 each to be disbursed in January and June for a total of$100,000.00 in UNTHSC grant funds each subsequent year of the Agreement and contingent on grant fund availability. All other terms of the Lease and Operating Agreement would remain the same. The incubator, which is housed within the former Guinn Elementary School at 600 East Rosedale, is located in COUNCIL DISTRICT 8, but will serve Fort Worth residents in ALL COUNCIL DISTRICTS. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will not increase the total appropriation of City funds. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office by: David Cooke (6116) Originating Department Head: Jay Chapa (5804) Additional Information Contact: Robert Sterns (212-2663) ATTACHMENTS 1. BAC Location Map.pd (Public)