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ndzW-l63 <br /> mhnartmincgi' li <br /> ' :management consulting <br /> ■ <br /> Ms. Bonnie B. Hammersley, County Manager <br /> Orange County <br /> 200 South Cameron Street <br /> Hillsborough, NC 27278 <br /> December 8, 2016 <br /> RE: Morinaga CDBG-ED Grant Administration Contract Amendment and Change Order Request <br /> This request is to amend the existing contract and services agreement between Orange County, North <br /> Carolina and Martin-McGill, Inc.The original contract was adopted October 26,2013 The contract is to <br /> provide professional services(grant administration)to Orange County in relation to the CDBG Economic <br /> Development project to benefit Morinaga America Foods, Inc.totaling$33,000($8,850 for grant <br /> application services and$24,150 for grant administrative services). <br /> Background <br /> The CDBG-ED was awarded to Orange County in 2013 totaling$750,000 from the State of North Carolina <br /> for infrastructure improvements related to the construction of the Morinaga America Foods, Inc.facility <br /> in Orange County.As a result of receiving this grant, Morinaga is required by the State of North Carolina <br /> to complete several steps and documentation in order to meet requirements and obligations of the <br /> grant. One of these obligations requires Morinaga America Foods, Inc.to create 90 jobs.The Legally <br /> Binding Commitment states that Morinaga America Foods, Inc.committed to creating 90 jobs, hiring at <br /> least 60%low and moderate income.The original goal was to have all 90 hires completed by March 31, <br /> 2016,or by the summer at the very latest.As a result of a delayed hiring process,the grant process was <br /> previously extended to January 7, 2017 by the Orange County Manager on February 23,2016. Morinaga <br /> America Foods, Inc. planned to meet the required 90 jobs threshold by the end of November 2016. <br /> However, Morinaga America Foods, Inc.did not meet this threshold.As of December 1, 2016, Morinaga <br /> America Foods, Inc. has hired 72 fulltime employees.As a result,the CDBG-ED will need to be extended <br /> to January 7,2018 requiring a change order request for administrative services with Martin-McGill, Inc. <br /> The grant process was extended to January 7,2018 by the Orange County Manager on November 29, <br /> 2016. <br /> Scope of Services <br /> Funds from the requested change order will include the following services: <br /> -30%Completion of the required 2017 Annual Performance Report <br /> -30%Continued job tracking of Morinaga America Foods, Inc. <br /> -30%Completion of the grant closeout once the 90 jobs are created <br /> - 10%General administrative services <br /> Martin-McGill,Inc. • 55 Broad Street • Asheville,North Carolina 28801 ■ 828.255.0313 • Fax 828.252.2518 <br />