Community Development Block Grant (CDBG) Microenterprise Funds: Grant Administration Agreement for the Low- and Moderate-Income (LMI) Business Assistance Grant ProgramCity of Dubuque
City Council Meeting
Consent Items # 09.
Copyrighted
August 15, 2022
ITEM TITLE: Community Development Block Grant (CDBG) Microenterprise Funds:
Grant Administration Agreement for the Low- and Moderate -I ncome
(LMI) Business Assistance Grant Program
SUMMARY: City Manager recommending City Council approval of the resolution
approving the Grant Administration Agreement with The Fountain of
Youth Program for the administration of the LMI Business Assistance
Grant Program funded by previously -allocated federal Community
Development Block Grant microenterprise funds.
RESOLUTION Grant Administration Agreement with the Fountain of
Youth Program to administer the Low- and Moderated ncome Small
Business Assistance Grant Program
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
Fountain of Youth - Small Business Grant City Manager Memo
Administration Agreement-MVM Memo
Staff Memo
Resolution of Approval
Agreement
Curriculum
Event Photo
Staff Memo
Resolutions
Supporting Documentation
Supporting Documentation
Supporting Documentation
THE C
Dubuque
DUjIBQTE
WAWca 914
Masterpiece on the Mississippi
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: CDBG Microenterprise Funds: Grant Administration Agreement for the
Low- and Moderate -Income (LMI) Business Assistance Grant Program
DATE: August 10, 2022
Economic Development Director Jill Connors is recommending City Council approval of
the resolution approving the Grant Administration Agreement with The Fountain of
Youth Program for the administration of the LMI Business Assistance Grant Program
funded by previously -allocated federal Community Development Block Grant
microenterprise funds.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
CC' Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Caprice Jones, Executive Director & Founder, Fountain of Youth
Dubuque Economic Development
Department
THE CITY OF 50 West 13th Street
Ali -America City Dubuque, Iowa 52001-4864
rn,axn,� �nM_atsKa� Office (563) 589-4393
DUB �-y TTY (563) 690-6678
L 11111
®' http://www.cityofdubuque.org
2007*2012*2013
Masterpiece on the Mississippi 2017*2019
TO: Community Development Advisory Commission
FROM: Jill M. Connors, Economic Development Director
SUBJECT: CDBG Microenterprise Funds: Grant Administration Agreement for the
Low- and Moderate -Income (LMI) Business Assistance Grant Program
DATE: August 9, 2022
INTRODUCTION
This memorandum presents for City Council review and approval a resolution approving
a Grant Administration Agreement with The Fountain of Youth Program to administer a
grant program using CDBG Microenterprise funding for the benefit of existing
businesses operated by low- and moderate -income (LMI) individuals in the city of
Dubuque.
BACKGROUND
In December 2017, the Community Development Advisory Commission approved the
allocation of $150,000 to the Economic Development Department to provide microloans
to entrepreneurs and budding businesses. The focus of the program was the Central
Avenue Corridor.
Three microloans of $35,000 each were provided to income -eligible entrepreneurs to
start up their businesses. This left a balance of $45,000 in the allocated fund.
Due to a lack of any wrap around services for the existing program's recipients, staff
proposed, and the Commission approved at its September 2019 meeting, a pilot of a
$1,500 Business Assistance Stipend for income -eligible individuals who were working
toward starting a business. The stipend was used to pay for eligible expenses, based
on each individual's particular needs in developing a business.
At its December 2019 meeting, the Commission approved an amendment to the level of
stipend from $1,500 to $3,000 to better assist the businesses.
The COVID-19 pandemic caused this program to completely stall because the training
available was put on hold. There was enough funding at the time to provide 10
stipends. However, the creation of 10 business startups between March 2020 and June
30, 2021 (date by which funds needed to be expended) seemed unlikely. Only 3
individuals had taken advantage of the program in 2019 and none in 2020. This led to
consideration of how to best use these funds to support small business for LMI
individuals.
DISCUSSION
Because the objective of these funds is to provide an economic development benefit to
LMI individuals, staff revamped the program to assist existing small businesses that are
operated by LMI individuals. Funds were provided in the form of a grant, to be
disbursed in two installments, in exchange for the individual's participation in both
personal and professional development activities. This serves two purposes: 1) it
provides short-term assistance to keep the business afloat; and 2) it positions the
business owner to improve the business over the long term due to the personal and
professional development activities required to remain eligible for the funds. (Studies
show that small business owners who receive three or more hours of mentoring report
higher revenues and increased growth.)
Covered expenses are only those allowed under CDBG regulations. All covered
expenses and grant disbursements are kept on file for auditing purposes, as well as
documentation of the required personal and professional development activities.
Staff proposed that the City partner with The Fountain of Youth Program to administer
the program, provide personal development programming, and hold the individual
accountable for progress. The Fountain of Youth Program's curriculum for the grant
program is attached. In addition to those sessions, the Fountain of Youth assists the
participants in connecting with a business mentor for one-on-one professional
development sessions.
Due to the success of this program last year (10 businesses took advantage of the
program in FY2022, of which 9 were minority -owned and 8 were woman -owned), and
the availability of additional CDBG funds in FY2023, I am proposing to continue the
program as it was administered last year — by the Fountain of Youth Program.
This year's cohort of 6 participants is comprised of 4 minority -owned and 3 woman -
owned businesses, namely:
• ProlifiC Creations
• Rumble Tumble Bounce House Rentals, LLC
• Exclusive Cutz and Styles
• City Girl Farming
• 1989 BAMMF
• Super Clean Dubuque LLC
New this year was a Kickoff Event which was held August 3rd at the Northeast Iowa
Community College's Town Clock Center, in partnership with NICC and the Chamber of
Commerce. In attendance were this year's participants, Mayor Cavanagh, several
Councilmembers, the City Manager, Economic Development staff, representatives of
the Fountain of Youth Program, Chamber of Commerce, SBDC/NICC, Dubuque
County, the Innovation Lab, Green State Credit Union, and several of last year's
participants. The event was an opportunity for this year's participants to learn about the
various resources available to them in the community, to hear from last year's
participants about the benefits of the grant program, and to share their hopes and
expectations of the program for their own businesses.
During the event, connections were already being made among the attendees which
could create new opportunities for the participants' success, such as one of last year's
participants realizing she could partner with one of this year's participants to increase
business for both of them.
RECOMMENDATION/ ACTION STEP
I respectfully request City Council approval of the attached resolution approving the
Grant Administration Agreement with The Fountain of Youth Program for the
administration of the LMI Business Assistance Grant Program funded by previously
allocated federal Community Development Block Grant microenterprise funds.
Prepared by: Jill Connors, Economic Development, 50 W. 1311 Street, Dubuque IA 52001, 563 589-4393
Return to: Jill Connors, Economic Development, 50 W. 131" Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 271-22
APPROVING A GRANT ADMINISTRATION AGREEMENT WITH THE FOUNTAIN OF
YOUTH PROGRAM TO ADMINISTER THE LOW- AND MODERATE -INCOME SMALL
BUSINESS ASSISTANCE GRANT PROGRAM
WHEREAS, Community Development Block Grant funds (the Funds) have been
allocated for the purpose of supporting microenterprises within the city of Dubuque which
are owned by low- to moderate -income individuals; and
WHEREAS, the Community Development Advisory Commission (the
Commission) has purview over the use of the Funds; and
WHEREAS, the Commission has reviewed and approved the use of the Funds in
the City of Dubuque Small Business Assistance Grant Program (the Grant); and
WHEREAS, The Fountain of Youth Program has the infrastructure necessary to
administer the Grant: and
WHEREAS, the City Council finds that it is in the interests of the City of Dubuque
to approve the Grant Administration Agreement with The Fountain of Youth Program to
administer the Grant.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the Grant Administration Agreement between the City of
Dubuque, Iowa, and The Fountain of Youth Program, a copy of which is attached hereto,
is hereby approved.
Section 2. That the Mayor is hereby authorized and directed to execute the
Grant Administration Agreement on behalf of the City of Dubuque and the City Clerk is
authorized and directed to attest to his signature.
Section 3. That the City Manager is authorized to take such actions as are
necessary to comply with the terms of the Grant Administration Agreement.
Passed, approved and adopted this 1511 day of August, 2022.
Brad Cay...rtMayor
AttA4est:
Adrienne N. Breitfelder, City Clerk
GRANT ADMINISTRATION AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
THE FOUNTAIN OF YOUTH PROGRAM
THIS AGREEMENT, dated for reference purposes the 16' day of Au qus
202q by and between the City of Dubuque, Iowa (City) and The Fountain of Youth
Program, an Iowa non-profit corporation (Agency).
WHEREAS, the City Council of the City of Dubuque has previously identified as a
goal 'Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity';
and
WHEREAS, on January 20, 2021, the City of Dubuque Community Development
Advisory Commission approved a program, known as the LMI-Owned Business
Assistance Grant Program (the Program), using Community Development Block Grant
microenterprise funds for business grant support to small businesses operated by low -
and moderate -income individuals; and
WHEREAS, City staff have determined it is necessary to partner with an
organization for the administration of the Program; and
WHEREAS, Agency serves low-income individuals with their personal
development and financial goals; and
WHEREAS, City staff have identified Agency as an appropriate organization to
facilitate the administration of the Program.
NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
SECTION 1. SCOPE OF SERVICE.
1.1 Agency shall make its personal development services available as described in
Attachment A to City of Dubuque residents interested in the Program (Candidates).
1.2 Upon approval of Candidates to participate in the Program, City shall disburse
CDBG microenterprise funds (the Funds) to Agency upon receipt of an invoice in an
amount not to exceed three thousand dollars ($3,000) per Candidate to cover eligible
expenses as provided in Section 1.5.
1.3 Agency shall work with Candidates for not fewer than two (2) months (Eight 45-
60-minute sessions), providing 1-on-1 support, mentoring, and advocacy to help
Candidates learn new personal development skills and tailor goals to align with the
successful operation of a business.
07292022bal
1.4 Agency shall ensure Candidate compliance with additional Qualifying
Requirements as described in Attachment B.
1.5 Agency shall disburse the Funds to Candidates on a prescribed schedule at City's
sole discretion for eligible expenses of a Candidate's business as described in
Attachment C.
1.6 Agency shall keep records of all Candidate applications, Qualifying Requirements,
and eligible expenses paid from the Funds.
1.7 Agency shall provide all records of receipt of and payment of the Fund and deliver
such records to City once the Funds have been fully expended, and/or upon written
request from City.
1.8 Agency shall return to City the unused balance of the Funds by each Candidate
on or before June 30, 2023.
SECTION 2. CITY RESPONSIBILITIES. City designates the Economic Development
Director to act as its representative with respect to the services to be performed under
this Agreement, and such person shall have authority to transmit instructions, receive
information, interpret and define City's policies and provide decisions in a timely manner
pertinent to the services covered by this Agreement until Agency has been advised in
writing by City that such authority has been revoked.
SECTION 3. TIME OF PERFORMANCE. This Agreement shall take effect upon
execution by both parties (the Effective Date). The Term of this Agreement shall be from
the Effective Date through June 30, 2023.
SECTION 4. COMPENSATION
4.1 City shall pay Agency an amount not to exceed Six Hundred Dollars ($600) as
compensation for the services provided by Agency as listed in Section 1, for each
Candidate, which payment shall constitute full and complete compensation for such
services.
4.2 Compensation will be made in two payments of Three Hundred Dollars ($300)
each. The compensation shall be paid by City to Agency upon receipt of an invoice listing
participant name and confirmation of a Candidate's completion of half of required
obligations within ten (10) days of receipt by City of the invoice.
SECTION 5. AUDIT AND EVALUATION. Inasmuch as the funds to be provided to
Agency by City are public funds, Agency agrees that it will maintain books of account in
accordance with Generally Accepted Accounting Standards together with necessary
documentation to support all expenditures. The records of Agency, including payroll
2
accounts and other records of disbursements and receipts, and other records relating to
the performance of the activities herein specified, shall be made available for inspection
by City or any Certified Public Accountant acting on its behalf, in order to ascertain
performance of Agency under this Agreement. Agency agrees to retain such records for
not less than three (3) years.
SECTION 6. REPORTING AND MONITORING.
6.1 Agency shall provide to the Economic Development Director a quarterly report
detailing its activities related to the use of the Funds. Such report shall include a
performance report on the program(s) supported by the Funds and a financial report on
the use of the Funds, which shall be rendered no later than October 15th, 2022, January
15th, 2023, April 15th, 2023, and July 15th, 2023. A written annual equity report shall be
submitted within sixty (60) days of the end of the Term. The performance report shall
include services relevant to the objective, output, and outcome that furthers identified City
Council goals.
https://www.cityofdubugue.org/FormCenter/Economic-Development-10/Small-Business-
Grant-Administration-Repo-639
6.2 If Agency has an annual audit performed, Agency shall provide City with a copy of
the annual audit report within ninety (90) days of the end of Agency's fiscal year.
SECTION 7. DISCRIMINATION.
7.1 In carrying the services under this Agreement, Agency shall not discriminate
against any applicant because of age, color, familial status, gender identity, marital status,
mental/physical disability, national origin, race, religion/creed, sex, or sexual orientation.
Agency assures that all qualified applicants will receive consideration for the Program
without regard to age, color, familial status, gender identity, marital status,
mental/physical disability, national origin, race, religion/creed, sex, or sexual orientation.
7.2 Agency agrees and will undertake whatever affirmative measures are necessary
so that no person shall be excluded from participation in, be denied the benefits of, or be
subjected to discrimination under any program or activities funded in whole or in part with
any of the funds made available to Agency under the terms of this Agreement because
of age, color, familial status, gender identity, marital status, mental/physical disability,
national origin, race, religion/creed, sex, or sexual orientation..
SECTION 8. TERMINATION OF AGREEMENT.
8.1 If, through any cause, Agency shall fail to fulfill in a timely and proper manner its
obligations under this Agreement, or if the Agency shall violate any of the covenants,
agreements or stipulations of this Agreement, City shall thereupon have the right to
terminate this Agreement by giving written notice to Agency of such termination and
specifying the effective date thereof which shall be not less than thirty (30) days before
3
the effective date of such termination. If Agency shall fail to cure its default to the
satisfaction of City in City's sole discretion within such thirty -day period, this Agreement
shall be deemed terminated at the end of such thirty -day period without further action of
either party.
8.2 Upon termination of this Agreement, Agency shall return to City all unexpended
Funds andfor any Funds utilized for purposes other than stated in this Agreement.
SECTION 9. ASSIGNABILITY. Agency shall not assign any interest in this Agreement
without the prior written approval of City in City's sole discretion.
SECTION 10. INSURANCE. At the time of execution of this Agreement by Agency,
Agency shall provide the City copies of Agency's insurance certificates showing general
liability, automobile liability, and workers compensation insurance coverage to the
satisfaction of City for the Term of this Agreement..
CITY OF DUBUQUE, IOWA
Attest:
aA, // &" -
Adrienne N. Breitfelder, City Clerk
THE FOUNTAIN OF YOUTH
PROGRAM
By:''—�I
Cap'riceJonds, Executive Director
ATTACHMENT A
Career and Professional Development: Entrepreneur Tract
Week 1: Personal Domlopment
■ Communication_ verbal, non-verbal,written, visual
+ Interpersonal skits
■ organizationalskills
■ Problemsohing
■ self€onfiden€e
+ Adaptability
■ Integrity
■ work ethic
+ Leadership
Week 2: Goal Setting
■ short term vs long term
■ Personal goals: advancing your interest
■ Professional goals
• sm&RT goals used
Make goal as clear & detaied as possible
4 Haw wi I you measure success?
4 Are they achievable?
Ls it relevant?
4 seta begin ning & ending date
Week 3: Marketing (4 Fs)
■ Product:
• Price
■ Promotion
• place
4 identify products and services
--> identify your oustamers
4 Iskquestions
Define your maricetirg mix
4 Test your work
4 Review regularly
Week* Budgeting
■ calculating income
■ calculating expenses
■ Set goals
■ Choose a budget strategy [envelope system]
■ Adjust you rhabits
■ Automated banking;QuicBooksj
■ Trade your progress
■ Developing sample budget
0
Week5: CLwWFnerSeraic4
■
Communication skills continues
■
Patience
■
AsiCrve listening
■
Conflietresolution
■
[decision Making
■
Dependability
■
Knowledge ofprodurtandservioes
■
open mindedness
+
Responsiveness
■
Timeliness
Week 6: Human Resaurres
■ Recruitment
■ onboarding
■ Employee benefits
■ Art as an intermediary
• Training and development
• Legal compliance
Week 7: Networking
+ onlinegroups
■ Professionalassociations
■ Casual contacts
■ Community service clubs
4 Choose whatworksbest foryou
4 Make genuine connections
4 How can you contribute tothe relationship?
� 5tay€on5stent
4 continue to build your network
Woek 8: Seg Care & Persona I Growdn
• worVrfe balance
• Assess your persona I needs
• Achieve a balance that works for you
• rind something you love
4 control anger
4 Overcome urger to procrastinate
� Take time to be there for you
4 Break habit of laziness
� Learn to be considerate
4 Learn to be responsible
4 Develop skills and always learn
� Positive attitude
ATTACHMENT B
THE C-Fry OF
DUB
Masterpiece on [tie Mississippi
Dubuque
t isEk prnent
Department
Department
sa war i3" Street
WAIst7 Lq
•myaa-�:.-
Dubuque. Iowa 52U01-"6d
Offim{569� 589 4213
TTP (563) 690-6678
http:�fw .otyaidubuque.ag
2007.2012.2012
2D17*2019
LMI — OWNED BUSINESS AS SIBTAN CE GRANT
PROGRAM PURPOSE, ELIGIBILITY, AND REQurREMEPLT
Purpose
The City of Dubuque is a recipient of federal Community Development Block Grant
(CDBG) funds from the Department of Housing and Urban Development (HUD), which
must be used to support a national objective, one of which is to provide economic
development benefit to lour and moderate income (LMI) individuals and areas.
A business may qualify fora grant up to $3,000 if all eligibility and qualifying requirements
are m . There is no auarantee that a business wil I be funded_ The intent of the program
is to serve as many businesses as possible.
The purpose of this grant is to help businesses succeed over the long term- Part of
succeeding is not just covering current expenses with a grant, buL also to develop
strategies for continued success- The qualifying requirements are meant to provide
ongoing support to the business owner in the -owner's efforts to improve business
practices and increase income-
Eligibility■ The business owner lives inside the city limits of the City of Dubuque-
■ The business has fewer than five (5) employees-
■ The business has been operational for at least (six) 5 months before application.
■ The business owner is an individual from an LMI household.
Application Process
Applicatiansare to be submitted online at
httpsl ww-citvofdul)uaue.ara±1ntfEconomic-Development
The following documentation is needed to process an application_
■ Appl ication —sign ed1dated
0
ATTACHMENT C
THE C-Fry OF
DUB
Masterpiece can [tie miswissippi
Dubuque
t isEk prnent
Department
Department
sa war i3" Street
AFAIst7Lq
•myaa-�:.-
Dubuque. Iowa52U01-"64
Offim{569� 589 4213
TTP (563) 690-6678
http:�fw .otyaidubuque.ag
2007.2012.2012
2017*2019
ATTACHMENT D
EXAMPLES OF ELIGIBLE AND INELG[BLE EXPENSES
Federal regulations demand that this funding be used only for eligible expenses. If you
are unsure if an expense will be eligible for the Grant you mus( first oantact Jill Connors
for verification. You may ernaillilconno[ cityafdubugue_argorcall 563-564-5686. Failure
to confirm whether an expense is eligible may result in non overage of that expense by
the Grant -
Proof of these expenses is reguire-dto be reimbursed by the grant such as a paid
invoice, bill, or receipt that clearly shows the itemiservioe purchased -
Same examples of eligible and non -eligible expenses-
Elioible
■ Rentlutilities of commercial space (home office not eligible)
■ Salaries for employees not owner)
■ Supplies (think= paperclips, scissors, hangers, plates, etc-)
■ Marketing f ads
■ Permanent equipment
■ Permanent signage
■ Qu ick600ks
■ Training1technical assistance
NOT Eligible
■ Temporary signs
■ Furniture
■ Inventory (quantities of the product you sell)
■ Laptopftechnology)poimof sale equipment
1
10
Career and Professional Development: Entrepreneur Track
Week 1: Personal Development
• Communication: verbal, non-verbal, written, visual
• Interpersonal skills
• Organizational skills
• Problem solving
• Self confidence
• Adaptability
• Integrity
• Work ethic
• Leadership
Week 2: Goal Setting
• Short term vs long term
• Personal goals: advancing your interest
• Professional goals
• SMART goals used
4 Make goal as clear & detailed as possible
4 How will you measure success?
4 Are they achievable?
4 Is it relevant?
4 Set a beginning & ending date
Week 3: Marketing (4 P's)
• Product
• Price
• Promotion
• Place
4 Identify products and services
4 Identify your customers
4 Ask questions
4 Define your marketing mix
4 Test your work
4 Review regularly
Week 4: Budgeting
• Calculating income
• Calculating expenses
• Set goals
• Choose a budget strategy (envelope system)
• Adjust your habits
• Automated banking (QuickBooks)
• Track your progress
• Developing sample budget
Week 5: Customer Service
• Communication skills continues
• Patience
• Active listening
• Conflict resolution
• Decision Making
• Dependability
• Knowledge of product and services
• Open mindedness
• Responsiveness
• Timeliness
Week 6: Human Resources
• Recruitment
• Onboarding
• Employee benefits
• Act as an intermediary
• Training and development
• Legal compliance
Week 7: Networking
• Online groups
• Professional associations
• Casual contacts
• Community service clubs
4 Choose what works best for you
4 Make genuine connections
4 How can you contribute to the relationship?
4 Stay consistent
4 Continue to build your network
Week 8: Self Care & Personal Growth
• Work/life balance
• Assess your personal needs
• Achieve a balance that works for you
• Find something you love
4 Control anger
4 Overcome urger to procrastinate
4 Take time to be there for you
4 Break habit of laziness
4 Learn to be considerate
4 Learn to be responsible
4 Develop skills and always learn
4 Positive attitude
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