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HomeMy WebLinkAboutAmendment to PSA - MPinsky dba Four Five Advisors - Implement CDFI Friendly City Model in SB1316 COUNTY -CITY BUILDING 227 W.JEFFERSON BOULEVARD SOI )TH BEND. INDIANA 46601-1930 CITY OF BEND PETE BUTTIGIEG, MAYOR BOARD PUBLIC WORKS June 25, 2019 Mark Pinsky MPinsky LLC dba Five/Four Advisors 40 East Evergreen Avenue Philadelphia, PA 19118 RE: Amendment to Professional Services Agreement Dear Mr. Pinsky: PHONE 574/235-9251 FAX 574/235-9171 The Board of Public Works, at its meeting held on June 25, 2019, approved the above referenced amendment to explore the capacity and ability to implement CDFI friendly city model in South Bend in the amount of $100,000. Enclosed please find the original of the amendment for your signature. Please sign and return the original agreement to our office and retain a copy for your records. If you have any further questions regarding this matter, please call this office at (574) 235- 9251. Sincerely, Linda M. Martin, Clerk Enclosure GARY A. G[LOT GENEVIEVE E. MILLER ELIZABETH A. MARADIK LAURA L. O'SULLIVAN THEP-ESE J. DORAU FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT This First Amendment to Professional Services Agreement (this "First Amendment") is made effective on June 25, 2019 (the "Effective Date"), by and between the City of South Bend, Indiana, an Indiana municipal corporation, acting by and through its Board of Public Works (the "City"), and MPinsky, LLC d/b/a Five/Four Advisors (the "Contractor") (each a "Party" and collectively the "Parties"). RECITALS A. The City and the Contractor entered into a Professional Services Agreement dated November 13, 2018 (the "Services Agreement"), for the provision of Services to the City (as more specifically defined in the Services Agreement). B. The City and the Contractor wish to amend the Services Agreement to include additional Services. NOW, THEREFORE, in consideration of the mutual promises and obligations in this First Amendment and the Services Agreement, the adequacy of which consideration is hereby acknowledged, the Parties agree as follows: 1. Section 1 of the Services Agreement shall be deleted in its entirety and replaced with the following: Duties of the Contractor. The Contractor will provide to the City the professional services (the "Services"), set forth in the Contractor's proposal attached hereto as lihibits A and A-1 (together, the "Scope of Work"). In the event of any conflict between the terms of this Agreement and the terms of the Scope of Work, the terms of this Agreement, as amended, will prevail. The Contractor will execute its obligations under this Agreement in accordance with the prevailing professional standard of care for projects of similar design and complexity. 2. Section 2 of the Services Agreement shall be deleted in its entirety and replaced with the following: Consideration. The Contractor will be paid within thirty (30) days of its submission of an undisputed invoice. The total consideration under this Agreement shall not exceed the sum of One Hundred Thousand Dollars ($100,000). Any payment that the City may deny or withhold or delay shall not be subject to penalty or interest under Indiana Code § 5-17-5. 3. Section 3 of the Services Agreement shall be deleted in its entirety and replaced with the following: Term. This Agreement shall be effective for a period of 12 months commencing on January 1, 2019 ("Effective Date") and shall end no later than December 31, 2019 ("Expiration Date"). 4. The attached Exhibit A-1 shall be incorporated into the Services Agreement after Exhibit A. 5. Unless expressly modified by this First Amendment, the terms and provisions of the Services Agreement remain in full force and effect. 6. Capitalized terms used in this First Amendment will have the meanings set forth in the Services Agreement unless otherwise stated herein. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Professional Services Agreement to be effective as of the Effective Date stated above. MPINSKY LLC DBA FIVE/FOUR ADVISORS in Printed: Title: CITY OF SOUTH BEND, INDIANA BOARD OF PUBLIC WORKS - .................... Gary Gilot, President Genevieve Miller, Member Laura O'Sullivan, Member ATTEST': C, nda Martin, Cler 2 EXHIBIT A-1 Additional Scope of Services �/Dl FIVE/FOUR A D V I S O R S Proposed Scope of Work: Phase II CDFI Friendly South Bend Background Over the past nine (9) months, the City of South Bend with assistance from private and civic partners has explored the possibility of making South Bend a CDFI Friendly Community on terms and in ways that reflect the community's strengths, opportunities, and challenges. That worked culminated in a public convening on June 4, 2019, with broad agreement to proceed to the next, second phase. On Friday, June 21, 2019, the broad CDFI Working Group advising the effort endorsed the plan to proceed. Proposed Scope of Work As detailed initially in September 2018, the next phase of work would comprise business planning to fully articulate how the concept of CDFI Friendly South Bend would be implemented, including but not limited to a deeper understanding of the level of market demand for various uses, identification of the local, regional, and national CDFI partners likely to participate, sources and uses of capital, structure and responsibilities of the enterprise, and strategies and tactics over a three-year period. That planning would require rigorous research, planning and organizing with community -based organizations, financial institutions working in or near the market, the City, local philanthropic partners, business owners and operators, developers and entrepreneurs, and others. Five/Four Advisors uses business planning both to formulate and to test the viability of the business model at the heart of what would become CDFI Friendly South Bend. By detailing the what, how, why, when, and who of the start-up effort, the business plan will give sufficient clarity and granularity so that all prospective participants can make decisions that are likely to stand going forward. For instance, the structure and governance of the CDFI Friendly entity needs to represent an array of local interests or key players will shy away from the table. Prospective investors and funders would should know the planned terms and conditions. And South Bend residents need to be able to see clearly what is being done and how it will benefit them. To those ends, Five/Four Advisors expects to commit 36-48 days of work from July 1, 2019- December 31, 2019 to developing the business plan in a hands-on process through meetings with stakeholders in South Bend, discussions with investors and funders in South Bend and elsewhere, research, financial planning and modeling, writing, and presenting the business plan. The end product will be a written implementable business plan for this startup organization. The product of that work will be an effort, probably a nonprofit entity (likely a nonprofit, 501.c.3 under the U.S. tax code), that will be branded as CDFI Friendly South Bend. The business plan will be ready for operationalization by December 31, 2019, so that the community can create the legal entity, seat a founding Board of Directors, hire a key executive staff person, implement a financial management and reporting system, and start doing business in January 2020. That business will increase the flow of flexible and affordable financing from CDFIs and others in South Bend —and, perhaps, in a broader region —to benefit low-income, low -wealth, and other economically underserved people and communities. The effort will be organized with the guidance and active engagement of the full array of South Bend stakeholders —private and public, business and housing, local and regional, elected and voluntary, financial and non -financial. As with most successful community -engaged activities, this planning work will build on relationships developed since October 2018, as well as legacy community development work that has been underway in South Bend for many decades. The Five/Four Advisors Team Five/Four Advisors will do this work through its CDFI Friendly America team. That team will be led by Mark A. Pinsky, President of Five/Four Advisors, and by Adina Abramowitz, President of Consulting for Change. Both have decades of experience and expertise working with and around CDFIs and they will be the primary advisors to CDFI Friendly South Bend. Five/Four Advisors may support Pinsky and Abramowitz with other subject experts, as needed. Expenses Necessary expenses for this work, including travel, lodging, and reasonable incidental expenditures, will be billed for reimbursement in addition to per diem (or hourly) fees. BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date June 17.2019 Department Innovation & Name SoniamKarnovsky Technology BPW Date June 25, 2019 Phone Extension 9098 Reg uiaed Prior to Submittal to Board BPW Attorney ❑ Attorney Name Dept. Attorney ® Attorney Name Purchasing Check the ADorooriate Item 'Tvne — LJ Professional Services Agreement LJ Contract Sandra Kennedy 0 Open Market Contract ® Amendment/Addendum ❑ Bid Opening ❑ Bid Award ❑ Quote Opening E] Quote Award ❑ Proposal Opening ❑ C/O & PCA No. ❑ Chg. Order, No. ❑ Traffic Control F1 Other: Company or Vendor Name New Vendor MBE/WBE Contractor Project Name Project Number Funding Source Account No. Amount Terms of Contract Purpose/Description Information d or All Submissions ❑ Proposal ❑ Special Purchase, QPA n Req. to Advertise ❑ Title Sheet E Reject Bids/Quotes ❑ PCA ❑ Resolution ❑ Ease./Encroach Five/ Four Advisors __.._ Yes If Yes, Approved b Pu ........ ..... ........._.... ..............w. ❑ ❑ ................PP Y rchasing El No MBE Completed E-Verify Form Attached El Yes WBE ❑ No CDFI Friendly City ..................... . .......... 19JO03 _...__.... .. .............. ..._.. Redevelopment General Fund 433.1050.460.39.30 $100,000 1/l/2011 ................ 9 — 2/31 /2019 Update to CDFI Friendly Contract with Phase Two Scope of Work to explore capacity and ability to implement CDFI Friendly City Model in South Bend For Change Orders Ohl Amount of ❑ Increase $ ❑ Decrease ($ )—......... WW Previous Amount $ _.................... ........ Increase % Current Percent of Change: Decrease ( % New Amount $ ....M Increase % Total Percent of Change: Decrease Time Extension Amount: w% New Completion Date: