Loading...
HomeMy WebLinkAboutItem 5a. Review the Banchan Foods DEI SLO Business Grant Year-End Report Item 5a Human Relations Commission Agenda Report For Agenda of: 3/5/2025 Item Number: 5a FROM: Samantha Vethavanam, DEI Administrative Specialist Phone Number: (805) 781-7064 E-mail: svethava@slocity.org SUBJECT: REVIEW OF THE BANCHAN FOODS DEI SLO BUSINESS GRANT YEAR- END REPORT RECOMMENDATION Receive and file the Banchan Foods’ DEI SLO Business Grant year-end report. BACKGROUND The 2023-24 DEI SLO Business Grant funding recommendations were approved by City Council on June 20, 2023. On January 10, 2024, the Human Relations Commission (HRC) assigned liaison roles for each grant recipient. In January 2024, the grant recipients provided to the Office of Diversity, Equity, and Inclusion (DEI) their mid-year reports, which were reviewed by the HRC on February 7, 2024. In August 2024, grant recipients submitted their year-end reports, which were reviewed by the HRC on September 12, 2024. As required in the contract signed by the grant recipients, a mid -year and a year-end report is required to be submitted to the Office of DEI detailing information on project/program implementation during the life of the grant. Reports will include a statistical section highlighting demographic data, a detailed financial section explaining the use of the funds, and performance outcome measures related to the scope of services. Commissioners review and provide feedback to staff on their review of the reports. Although the 2023-24 DEI SLO Business Grant funds were to be expended by June 30, 2024, and a year-end report due in July 2024, grant recipient Banchan Foods had run into some setbacks related to obtaining the necessary permits to operate their business . This in turn delayed the launch of the business, and therefore their ability to spend the funds, by several months. Banchan Foods informed the Office of DEI about these setbacks in a memo dated July 26, 2024, requesting an extension of six months. The extension was provided on August 9, 2024, allowing Banchan Foods to have until December 31, 2024, to expend the funds and until January 20, 2025, to submit their year- end report. Banchan Foods submitted their year-end report to the Office of DEI on December 22, 2024. Page 21 of 82 Item 5a As liaison to Banchan Foods, Commissioner Smith will provide a summary of the year- end report and inform the HRC if Banchan Foods is in compliance with the expected implementation of their proposed project and ask staff to follow up with recipient if questions arise. ATTACHMENTS A – Banchan Foods Amended Contract B – Banchan Foods Year-End Report Page 22 of 82 AMENDMENT No. 1 TO DEI SLO BUSINESS GRANT AGREEMENT THIS AMENDMENT, dated ___________________ for the convenience of the parties hereto, is between the City of San Luis Obispo, a chartered municipal corporation (referred to herein as CITY), and Banchan Foods (referred to herein as GRANTEE). WITNESSETH: WHEREAS, on June 29, 2023, GRANTEE and CITY entered into an Agreement for Diversity Equity Inclusion SLO Business Grant (the “Agreement”), in which GRANTEE agreed to provide and increase culinary diversity and promote Korean culture in San Luis Obispo as further described in GRANTEE’s application submitted to the CITY on March 28, 2023 (the “Services”); and WHEREAS, GRANTEE was unable to complete the Services by June 30, 2024 because of delays in processing by the State for the Processed Foods Registration permit, and, after being forced to move business locations, GRANTEE was required to amend their State and County operating permits; and WHEREAS, GRANTEE is now able to complete the services further described in Exhibit 1 because they have successfully obtained the required State and County permits for operation, and the remaining unused funds will be used to amend their permits to reflect their new business location; and WHEREAS, the CITY reaffirms its finding that GRANTEE’s services will provide a benefit to the community by enhancing a sense of belonging for all people and contributing to a community that is welcoming, inclusive, equitable, and safe, and the goals of GRANTEE’S services will be properly met if GRANTEE is allowed a reasonable extension of time to perform the services. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1)AMENDMENTS. The parties agree to amend the Agreement as follows: a)Paragraph 1 is deleted and replaced as follows: The Parties acknowledge that GRANTEE made some of its Services, as described in its application (the “Application”), incorporated by reference and attached to the Agreement as Exhibit A, available to CITY residents in 2023 and 2024. GRANTEE further agrees to complete the services described in Exhibit 1 of this Amendment by December 31, 2024. b) Paragraph 2 is deleted and replaced as follows: The Parties acknowledge that GRANTEE provided CITY with a mid-year report on January 10, 2024. GRANTEE shall provide a final program report, summarizing administrative, statistical, financial, and client Service activities in the form of Exhibit 2 of this Amendment, by January 20, 2025. Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 August 9, 2024 Page 23 of 82 2) FAILURE TO PERFORM. Should GRANTEE fail to perform the services described in Exhibit 1 on or before December 31, 2024, GRANTEE shall return to the CITY a prorated sum calculated by the CITY which represents the funds granted to GRANTEE but unused by December 31, 2024. Additionally, should GRANTEE complete the services described in Exhibit 1 at a cost lower than the funding amount granted by the CITY, GRANTEE shall return to the CITY the excess funds. Either or both reimbursement(s) shall be made no later than January 20, 2025. Should GRANTEE fail to provide a final program report by January 20, 2024, GRANTEE may be deemed ineligible for future grants or other financial aid offered by the CITY. 3) FORCE AND EFFECT. Except as set forth in this Amendment, all terms and conditions of the Agreement shall remain in full force and effect. 4) PRIORITY ORDER. In the event of a conflict between the Agreement and this Amendment, the terms of this Amendment shall take precedence. 5) AUTHORITY TO EXECUTE. Each Party represents and warrants that it has full power and authority to execute this Amendment and to undertake each and all of its respective obligations hereunder, and that each person executing this Amendment on its behalf is duly and validly authorized to do so. 6) COUNTERPARTS. This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which shall be taken together and deemed to be one instrument. The parties further agree that a signature transmitted via facsimile or e-signature shall be deemed original for all purposes hereunder. GRANTEE By: _______________________________________ Trina Lee, Owner CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION By: _______________________________________ Greg Hermann, Deputy City Manager APPROVED AS TO FORM: By: ________________________________________ Sadie Symens, Deputy City Attorney Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 24 of 82 MEMO TO: City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 Attn: Nestor Veloz-Passalacqua Diversity, Equity, & Inclusion Manager FROM: Trina Lee Banchan Foods DEI SLO Business Grant FY 2022-2023 SUBJECT: REQUEST FOR EXTENSION OF AGREEMENT Thank you for considering this request for extension of the DIVERSITY EQUITY INCLUSION SLO BUSINESS GRANT 22-23 Agreement between Trina Lee/Banchan Foods and the City of SLO. Due to setbacks in securing the necessary permits to operate, the grant funds have not been exhausted before the end of the Agreement period. Therefore, I am requesting a 6-month extension to the Agreement. I experienced setbacks in the process of securing the necessary permits to operate, which delayed the launch of my business by several months. The most significant setback was the processing of my California Processed Foods Registration application by the California Department of Public Health’s Food and Drug Branch. Permit Application Processing Delays Commercial kimchi production requires several permits. One of these permits is a Processed Foods Registration from the California Department of Public Health (CDPH). Navigating the permitting process was extremely challenging, but after numerous meetings and phone calls with local and State Health Department representatives, as well as outside resources, I completed my application for Processed Foods Registration in September 2023. Unfortunately, the State had a backlog of applications, and processing took 5 months. I received final approval on February 6, 2024. Subsequently, I applied for the Dependent Food Service Operator Permit from the SLO County Environmental Health Services Division, which was approved on March 25, 2024. After that, I applied for the Temporary Food Facility Multiple Events Permit, which was approved on May 9, 2024. I made my first legal sale the following day on May 10, 2024. Unfortunately, the period of time during which I was able to legally sell kimchi was very brief. Ownership of the Commercial Kitchen space I rented changed, and the new landlord refused to honor the terms of my lease. I was forced to move. On May 22, 2024, I moved to a new commercial kitchen location within Exhibit A Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 25 of 82 the City of SLO. Since all of my permits are attached to the old kitchen address, I will have to obtain new permits before I can return to legally selling my kimchi. Financial Report Balance: $23,656.00 spent $1,344.00 remaining Equipment - $4,663.17 Supplies - $4,223.83 Rent - $9,350.00 Permits & Licensing - $2,236.08 Insurance - $289.00 Food Costs - $662.32 Services - $194.80 Mileage - $2,036.80 Planned Business Activities Changing kitchens requires amending my permits to reflect the new kitchen location. This will cost $1,344 in permit application fees. August Apply for Processed Foods Registration from the California Department of Public Health. September Apply for updated Dependent Food Service Operator Permit and Temporary Food Facility Multiple Events Permit from SLO County Environmental Health Department. Submit an updated Year-End Report reflecting the utilization of remaining grant funds. Planned Utilization of Remaining Funds Upcoming expenditures: Application fees to amend all permits to reflect new kitchen location: $556 - Processed Foods Registration+Health Safety Fee $488 - Dependent Food Service Operator Permit-Moderate Prep $300 - Temporary Foods Facility Multiple Events Permit Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 26 of 82 Thank you for your consideration of my request for extension. I look forward to completing the necessary steps to get this business fully launched in the coming months. Trina Lee Banchan Foods 805-704-5004 banchanfoods@gmail.com Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 27 of 82 DIVERSITY EQUITY INCLUSION SLO BUSINESS GRANT 22-23 THIS AGREEMENT, dated ___________________ for the convenience of the parties hereto, is between the City of San Luis Obispo, a chartered municipal corporation (referred to herein as CITY), and Banchan Foods (referred to herein as GRANTEE). WITNESSETH: WHEREAS, GRANTEE has requested CITY to contribute to Kimchi Business as submitted in its application to the CITY on March 31, 2023. WHEREAS, the Services will be available to residents of the City, thereby serving both a public and municipal purpose. NOW, THEREFORE, CITY and GRANTEE for and in consideration of the mutual benefits, promises, and agreements set forth herein, do agree as follows: 1. GRANTEE will make its Services, as described in its application (the “Application”), incorporated by reference and attached as Exhibit A, available to City residents from July 1, 2023 to June 30, 2024. 2. GRANTEE will provide CITY with a mid-year report, due January 10, 2024, and final program report, due July 10, 2024, summarizing administrative, financial, and client Service activities. Said reports shall be in the form of “Exhibit B,” attached hereto. 3. GRANTEE and all its agents, representatives, or participants in any manner in the performance of its obligations and duties hereunder shall be employees or volunteers of GRANTEE. They shall not, for any purpose, be considered employees or agents of the CITY. 4. GRANTEE agrees to hold CITY harmless and to defend CITY against, from, and in any claim, action, proceeding, or hearing wherein there is an allegation charging liability of the part of the CITY as a result of any act or omission, negligent, or otherwise, by GRANTEE. 5. CITY agrees to pay the GRANTEE a one-time only grant, in the sum of $25,000, to be used for the Services as described in the Application. The grant will be paid in one installment when a signed contract is received. 6. The Department Head- Administration may terminate this agreement at his sole discretion, after a public hearing and upon ten (10) days written notice to GRANTEE. Said termination shall be effective thirty (30) after CITY mails notice of termination of agreement to GRANTEE. Any funds not paid pursuant to paragraph 5 above shall revert to CITY upon said termination. 7. GRANTEE shall complete the five-hour Small Business Development Center (SBDC) course within 30 business days of fund disbursement. Proof of completion shall be provided to DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1 6/29/2023 | 10:37 AM PDT Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 28 of 82 CITY. If GRANTEE fails to provide timely proof of completion, CITY reserves the right to pursue return of the awarded funds in civil action. 8. GRANTEE hereby certifies and agrees that it will comply with the Human Relations Commission “Bylaws,” which creates an environment within the City in which all persons can enjoy equal rights and opportunities regardless of race, religion, sex, national origin, sexual orientation, age, physical, mental, or economic status. 9. For purposes of notice under this agreement, all notices shall be considered effective upon being sent by certified mail to the following addresses: CITY: City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 Attn: Greg Hermann, Assistant City Manager GRANTEE: Banchan Foods 97 Ash Ave #183 Cayucos, CA 93430 Attn: Trina Lee caltrinalee@gmail.com IN WITNESS WHEREOF, the parties have executed this agreement by their proper officers duly authorized: GRANTEE By: _______________________________________ Trina Lee, Owner CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION By: _______________________________________ Greg Hermann, Assistant City Manager APPROVED AS TOFORM: By: ________________________________________ Christine Dietrick, City Attorney DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 29 of 82 HUMAN RELATIONS COMMISSION Diversity, Equity, & Inclusion SLO Business Grant: 2023-24 DEI SLO Business Grant Application The funding and grant application will support initiatives to diversify the local economy and shall be accessible to anyone. All proposals must be inclusive of all individuals and communities. BUSINESS NAME PROJECT/PROGRAM NAME DATE BUSINESS ESTABLISHED BUSINESS LICENSE NUMBER WEBSITE Address *If you are not currently a business, you must be willing to participate in 5 hours of one-on-one coaching with the Small Business Development Center and secure a business license. (This person will receive notifications regarding grant decisions, contract execution, and reporting requirements) BUSINESS CONTACT * PHONE E-MAIL ADDRESS * WHO PREPARED THIS APPLICATION (if different than above) BUSINESS INFORMATION Banchan Foods Kimchi Business 3/31/2023 NA NA City State / Province / Region Postal / Zip Code Country Street Address Address Line 2 Yes No CONTACT INFORMATION Trina Lee 8057045004 calltrinalee@gmail.com Exhibit ADocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 30 of 82 PHONE 1) Which of the below best describes your business proposal reflected in this application * 2) Provide an executive summary of the proposal (Max 200 words)* 3) Is this proposal for:* 4) Requested Amount * GRANT REQUEST INFORMATION Service Product Experience Promotion Other Banchan Foods is a new kimchi business that seeks to increase culinary diversity and promote Korean culture in San Luis Obispo. With a grant request amount of $25,000 and a total project budget of $55,000 (with the other $30,000 self-funded), Banchan Foods will produce and sell kimchi directly to consumers through its website and at local farmers' markets. The company will also wholesale the product to SLO Oriental Market, SLO Co-Op and other brick and mortar outlets. To ensure sustainability, Banchan Foods will prioritize using locally sourced ingredients, eco-friendly packaging, and a zero-waste production process. To make Korean culture more accessible and inclusive, Banchan Foods will offer a range of kimchi options to cater to different dietary needs and preferences, including spicy, vegan, and traditional options. In addition to selling kimchi, Banchan Foods will use its social media platforms to promote Korean culture through instructional and informative videos about the significance of kimchi to Korean culture. The business owner intends to collaborate with the local Korean American community, including the CalPoly Korean American Student Association, to increase community involvement and foster appreciation for Korean culture. Through this venture, Banchan Foods aims to create a sustainable business model that benefits underserved communities in San Luis Obispo while promoting the importance of cultural diversity and inclusion. A new program Continuation of an existing program 25,000 DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 31 of 82 5) Itemized breakdown of requested amount (e.g., products or services purchased, hours subsidized, etc.): 6) What percentage of the funding needed will this grant cover?* EQUIPMENT $4,570 Robo Coupe $2,200 Mandoline x 3 $105 Commercial Vitamix $530 Knives $200 20-qt Stock Pot x 2 $120 Cambros x 6 $300 Booth Supplies $400 Smart Lav+ Mic $80 Ring Light $35 Tripod + Mount $200 MILEAGE $1,800 2800 miles/year $1,800 FOOD COSTS $9,100 Food $175 /100 jars $9,100 MATERIALS $6,890 Jars + Lids $4,530 Labels $1,510 Merchandise $600 Office Supplies $250 RENT $10,040 kitchen $25/hrx40hs/mo $1,000 Cold Storage $200/mo $200 Farmer's $170/wk $8,840 INSURANCE $1,200 Product liability $1,200 LICENSING $1,085 CA Processed Food Registration $456 SLO Health Dept Temp Food Facility $294 SLO Business License $95 Food Manager Certification $150 County Farmers Market Certified Producer Permit $90 SERVICES $8,436 Webhosting $40/mo $480 Bookkeeping $300/mo $3,600 Website Design $3,000 Legal and Tax Services $1,200 Canva $13/mo $156 TAXES $12,289 Income Tax $12,289 TOTAL $55,010 Approximately 45% DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 32 of 82 7) How will this proposal benefit underrepresented and/or underserved communities in the City of SLO?* 8) Briefly describe 1-3 methods of evaluation with indicators of success for your proposal.* I certify that the information contained in this application is, to the best of my knowledge, true and accurate; that my business subscribes to the Human Relations Commission’s “Statement of Purpose and Bylaws” which creates an environment within the City in which all persons can enjoy equal rights and opportunities regardless of race, religion, sex, national origin, sexual orientation, age, physical, mental or economic status; and that this application is submitted with the full knowledge and endorsement of the business and that I am authorized submit the application on behalf of the business. Signature * Date * Please include the following attachments. If these are not included, it will be considered as incomplete application and will not be reviewed.    1. The Business Proposal/Plan (max 3 pages)* 2. Summary of P&L/Financials (max 1 page)* It will provide a new and unique culinary experience to the community, which will increase the diversity of food options available in the city. This will not only benefit those who are already familiar with Korean cuisine, but also those who may not have been exposed to it before, thereby promoting cultural exchange and appreciation. Secondly, as a Korean American-owned business that specializes in producing a traditional Korean dish, Banchan Foods will bring visibility to the underrepresented Korean American community in SLO. By sharing my cultural heritage and story through food, I hope to foster understanding and appreciation for Korean culture among the wider community. In doing so, Banchan Foods will also serve as a unifying force for the local Korean American community, who will see their culture represented and celebrated through this business. Finally, Banchan Foods will utilize its social media platform to promote Korean culture and increase understanding and appreciation for Korean food and traditions. Through instructional videos and educational content, Banchan Foods will provide a window into the rich history and cultural significance of kimchi and other traditional Korean dishes. Furthermore, Banchan Foods plans to collaborate with the local Korean American community to promote and celebrate Korean culture in SLO. One avenue for collaboration is through engagement with the Korean American Student Association at CalPoly. By partnering with the club, Banchan Foods can engage with the community and foster a deeper appreciation for Korean food and traditions. Through these efforts, Banchan Foods will increase the visibility of Korean culture and provide a unique and valuable contribution to the culinary diversity of SLO. By promoting inclusivity and understanding of diverse cultures, Banchan Foods will also foster a more connected and supportive community for all. Indicators of Success: - average of at least 100 units sold per week - available in at least 5 brick and mortar locations within the first year - average of at least 20 instances of social media engagement (likes, comments, shares) per week Signature 3/28/2023 Attachments Banchan Foods - Business Plan.pdf 50.16KB Banchan Foods - Profit and Loss Report.pdf 65.93KB DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 33 of 82 3. Diversity, Equity, & Inclusion Statement (1-3 paragraphs)* Banchan Foods - DEI Statement.pdf 24.29KB DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 34 of 82 Business Plan Banchan Foods Banchan Foods is a new business that specializes in producing and selling authentic Korean Kimchi.Our product will be sold at local farmers'markets and health food stores in San Luis Obispo County at a competitive price of $12 per jar.Our mission is to provide customers with a unique,healthy,and flavorful product that will keep them coming back for more.We are committed to providing top-notch customer service,and we aim to expand our product offerings in the future.Our startup budget of $55,000 will be used for the purchase of necessary equipment,website development,branding,packaging,and marketing. Market Analysis: The market for fermented food products like Kimchi has been on the rise due to the increasing awareness of the importance of gut health.Furthermore,Korean food has gained popularity in recent years,and the demand for authentic Kimchi has increased in the US.Our target market is health-conscious individuals who are looking for natural and organic food products that taste great.Our customers will be those who are looking for unique and flavorful condiments to add to their meals. Marketing and Sales: Our marketing strategy will be to leverage the power of social media platforms such as Instagram,Facebook,and TikTok to reach our target audience.We will also partner with local health food stores and farmers'markets to promote our product.To increase brand awareness, we will attend food festivals and events,and we will offer samples to customers.Our sales strategy will include offering a discount for customers who buy in bulk. Product Line: Our initial product line will include three flavors of Kimchi:traditional,vegan,and spicy.We will use high-quality ingredients to ensure the best taste and flavor in each jar.Our Kimchi will be made in small batches to ensure freshness,and we will use glass jars that are recyclable and environmentally friendly. Operations: To start,I will be the only employee.I will handle production,sales,and delivery.I will be responsible for making Kimchi,packaging,labeling,and delivering the product to the farmers' market and health food stores.We will rent a space in a commercial kitchen in the City of SLO where we will make our Kimchi. Financial Projections: Our total startup budget is $55,000,which includes equipment,website development,branding, packaging,and marketing.We project our revenue in the first year to be $79,000 with a net profit of $32,000.By the end of the third year,we expect to reach a revenue of $133,000 with a DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 35 of 82 net profit of approximately $54,000.We will reinvest our profits into expanding our product line and increasing production capabilities. Conclusion: Banchan Foods aims to provide customers with a unique and flavorful product that is healthy and affordable.We are confident that our focus on quality,customer service,and marketing will enable us to grow and establish ourselves as a reputable brand in the fermented food industry. DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 36 of 82 Banchan Foods is a proposed kimchi business that aims to increase the culinary diversity of SLO by sharing a beloved and essential aspect of Korean culture.Kimchi is not only a staple in Korean cuisine but an essential part of Korean identity.By starting this business,I hope to share my culture and unite the local Korean American community while also fostering understanding and appreciation for Korean culture among the broader community. The lack of representation of underrepresented cultures in the local food industry is a significant issue.My mission is to increase the culinary diversity of the City of SLO by introducing traditional Korean kimchi to the local food scene and to use my business as a vehicle for promoting diversity,equity,and inclusion. Overall,Banchan Foods seeks to contribute to a more diverse and inclusive community in SLO by sharing the cultural significance and deliciousness of kimchi with everyone.The grant will provide an opportunity to turn this vision into a reality and make a meaningful impact in the community. DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 37 of 82 Banchan Foods Profit and Loss Report Profit and Loss Report Revenue Year 1 Year 2 Year 3 Sales $79,200.00 $110,880.00 $133,056.00 Less: Discounts and Allowances $1,000.00 $1,400.00 $1,680.00 Net Sales $78,200.00 $109,480.00 $131,376.00 Cost of Goods Sold Materials $15,740.00 $22,036.00 $26,443.20 Overhead $4,655.00 $6,517.00 $7,820.40 Total Cost of Goods Sold $20,395.00 $28,553.00 $34,263.60 Gross Profit $57,805.00 $80,927.00 $97,112.40 Operating Expenses Advertising $500.00 $700.00 $840.00 Rent $10,040.00 $14,056.00 $16,867.20 Insurance $1,200.00 $1,680.00 $2,016.00 Mileage $1,800.00 $2,520.00 $3,024.00 Depreciation $600.00 $840.00 $1,008.00 Other Expenses $500.00 $700.00 $840.00 Total Operating Expenses $14,640.00 $20,496.00 $24,595.20 Operating Profit (Loss)$43,165.00 $60,431.00 $72,517.20 Add: Other Income Other Income $1,200.00 $1,680.00 $2,016.00 Profit (Loss) Before Taxes $44,365.00 $62,111.00 $74,533.20 Less: Tax Expense $12,289.11 $17,204.75 $20,645.70 Net Profit (Loss)$32,075.90 $44,906.25 $53,887.50 DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 38 of 82 DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 39 of 82 DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 40 of 82 DocuSign Envelope ID: E0705B28-51CC-49D3-AA24-43CA8D5DB2B1Docusign Envelope ID: 96C332CC-0F4B-4A60-A00F-37D40370B529 Page 41 of 82 Certificate Of Completion Envelope Id: 96C332CC0F4B4A60A00F37D40370B529 Status: Completed Subject: Complete with Docusign: Amendment No.1 to 2023-24 DEI SLO Business Grant Contract - Banchan Foo... Department: Supplier: Source Envelope: Document Pages: 19 Signatures: 3 Envelope Originator: Certificate Pages: 5 Initials: 0 Lindsay Christiansen AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 990 Palm Street San Luis Obispo, CA 93422 lchristi@slocity.org IP Address: 104.129.202.91 Record Tracking Status: Original 7/31/2024 10:42:56 AM Holder: Lindsay Christiansen lchristi@slocity.org Location: DocuSign Signer Events Signature Timestamp Trina Lee calltrinalee@gmail.com Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 174.87.152.90 Sent: 7/31/2024 10:45:29 AM Viewed: 8/8/2024 9:56:15 PM Signed: 8/8/2024 10:01:30 PM Electronic Record and Signature Disclosure: Accepted: 8/8/2024 9:56:15 PM ID: 6a092792-f019-4a1a-a21c-a5a3d52012e0 Greg Hermann ghermann@slocity.org Deputy City Manager Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 170.85.55.115 Sent: 8/8/2024 10:01:32 PM Viewed: 8/9/2024 8:25:02 AM Signed: 8/9/2024 8:25:46 AM Electronic Record and Signature Disclosure: Accepted: 8/9/2024 8:25:02 AM ID: 5c5cc0f3-acfd-4b21-9558-acf2c0bc59ec Sadie Symens ssymens@slocity.org Deputy City Attorney City of San Luis Obispo Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 104.129.202.82 Sent: 8/9/2024 8:25:48 AM Viewed: 8/9/2024 8:32:07 AM Signed: 8/9/2024 8:32:25 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Page 42 of 82 Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Daniel Clancy dclancy@slocity.org Purchasing Analyst City of San Luis Obispo Security Level: Email, Account Authentication (None) Sent: 8/9/2024 8:32:27 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Katie Done kdone@slocity.org Security Level: Email, Account Authentication (None) Sent: 8/9/2024 8:32:28 AM Electronic Record and Signature Disclosure: Accepted: 6/17/2024 8:16:46 AM ID: 76e78e69-6dd9-4ea6-b7b4-c4074ae30dbd Nestor Veloz-Passalacqua nveloz@slocity.org Security Level: Email, Account Authentication (None) Sent: 8/9/2024 8:32:29 AM Electronic Record and Signature Disclosure: Accepted: 6/25/2024 8:22:54 AM ID: 35ad4004-7a68-4520-bd67-7f48cc6e1507 Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 7/31/2024 10:45:29 AM Certified Delivered Security Checked 8/9/2024 8:32:07 AM Signing Complete Security Checked 8/9/2024 8:32:25 AM Completed Security Checked 8/9/2024 8:32:30 AM Payment Events Status Timestamps Electronic Record and Signature Disclosure Page 43 of 82 ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, Carahsoft OBO City of San Luis Obispo (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through your DocuSign, Inc. (DocuSign) Express user account. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to these terms and conditions, please confirm your agreement by clicking the 'I agree' button at the bottom of this document. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. For such copies, as long as you are an authorized user of the DocuSign system you will have the ability to download and print any documents we send to you through your DocuSign user account for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. To indicate to us that you are changing your mind, you must withdraw your consent using the DocuSign 'Withdraw Consent' form on the signing page of your DocuSign account. This will indicate to us that you have withdrawn your consent to receive required notices and disclosures electronically from us and you will no longer be able to use your DocuSign Express user account to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through your DocuSign user account all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us. Electronic Record and Signature Disclosure created on: 5/10/2017 10:25:58 AM Parties agreed to: Trina Lee, Greg Hermann, Katie Done, Nestor Veloz-Passalacqua Page 44 of 82 How to contact Carahsoft OBO City of San Luis Obispo: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: keriksso@slocity.org To advise Carahsoft OBO City of San Luis Obispo of your new e-mail address To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at keriksso@slocity.org and in the body of such request you must state: your previous e-mail address, your new e-mail address. We do not require any other information from you to change your email address.. In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected in your DocuSign account by following the process for changing e-mail in DocuSign. To request paper copies from Carahsoft OBO City of San Luis Obispo To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an e-mail to keriksso@slocity.org and in the body of such request you must state your e-mail address, full name, US Postal address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with Carahsoft OBO City of San Luis Obispo To inform us that you no longer want to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your DocuSign account, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an e-mail to keriksso@slocity.org and in the body of such request you must state your e-mail, full name, IS Postal Address, telephone number, and account number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software Operating Systems: Windows2000? or WindowsXP? Browsers (for SENDERS): Internet Explorer 6.0? or above Browsers (for SIGNERS): Internet Explorer 6.0?, Mozilla FireFox 1.0, NetScape 7.2 (or above) Email: Access to a valid email account Screen Resolution: 800 x 600 minimum Enabled Security Settings: •Allow per session cookies •Users accessing the internet behind a Proxy Server must enable HTTP 1.1 settings via proxy connection ** These minimum requirements are subject to change. If these requirements change, we will provide you with an email message at the email address we have on file for you at that time providing you with the revised hardware and software requirements, at which time you will have the right to withdraw your consent. Page 45 of 82 Acknowledging your access and consent to receive materials electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please verify that you were able to read this electronic disclosure and that you also were able to print on paper or electronically save this page for your future reference and access or that you were able to e-mail this disclosure and consent to an address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format on the terms and conditions described above, please let us know by clicking the 'I agree' button below. By checking the 'I Agree' box, I confirm that: • I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF ELECTRONIC RECORD AND SIGNATURE DISCLOSURES document; and • I can print on paper the disclosure or save or send the disclosure to a place where I can print it, for future reference and access; and • Until or unless I notify Carahsoft OBO City of San Luis Obispo as described above, I consent to receive from exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to me by Carahsoft OBO City of San Luis Obispo during the course of my relationship with you. Page 46 of 82 Exhibit B City of San Luis Obispo Grant Recipient Report Template Midyear Report Due:January 20,(YEAR)-Year-End Report Due:July 20,(YEAR) Grant Name:DEI SLO Business Grant Grant Year:FY 2022-2023 Type of Report:Midyear Report (check box)End-year Report (check box)✓ Organization:Banchan Foods Project Name:Kimchi Business Administrator ’s Report:(A brief synopsis of the activities of the reporting period,including a statement of the activities,service or programs provided as described in Exhibit A (your grant application)and any changes that have occurred during the reporting period.If operations or service provision have changed,please disclose,and explain the reasoning and response to changes in this section.) ●Received long-awaited California Processed Foods Registration! ●Received SLO County Dependent Service Operator Permit. ●Received SLO County Temporary Food Facility Multiple Events Permit. ●Completed Food Handlers Manager Certification. ●Began conducting in-person sales from my commercial kitchen space in SLO. ●Established an account with Harvestly,have sold 36 jars of kimchi through this platform. ●Purchased remaining equipment and supplies needed for Farmer ’s Market sales. ●Applied for booth space at the following Farmer ’s Markets: San Luis Obispo Saturdays San Luis Obispo Thursdays Morro Bay Thursdays &Saturdays Templeton Saturdays ●Secured Morro Bay Business License. ●Started selling at the Saturday Morro Bay and Thursday SLO Farmers Markets,have sold 82 jars at these markets. ●Participated in AAPI’s Asian American Festival on May 11th,donated 30 jars of kimchi for festival-goers to enjoy. ●Approached several brick-n-mortar markets—two are currently carrying my kimchi: Sunshine Health Foods in Morro Bay and Soto’s Market in Cambria.I’m also in conversation with SLO Veg,SLO COOP,and Gather Natural Market in Atascadero. Page 47 of 82 ●Ownership of my commercial kitchen space changed and I had to move to a new kitchen space in the City of SLO.Unfortunately,this required reapplying for all of my permits with the new kitchen address. ●Updated and renewed my CA Processed Foods Registration,SLO Dependent Food Service Operator Permit,and SLO Temporary Foods Facility Multiple Events Permit. ●Participated in the Pickle Festival fundraiser for Meals That Connect,served Gyeran-Jangjorim to 500 attendees. ●Collaborating with the CalPoly Korean American Student Association to plan an activity for National Kimchi Day. ●Collaborating with Sichuan Kitchen on some upcoming community-centered events. ●Collaborating with local business podcast,The Artistic Abode,to do an interview. ●Creating educational videos on kimchi-making,which will be shared on social media as well as used as part of a presentation for Kimchi Day. Statistical Report:(This section must include 1)the metrics reported as described in Exhibit A (your grant application)and 2)the demographic data collected through the surveys. ●Because of significant delays with permit application processing,I’m really only just getting started selling my kimchi.So far I’ve sold 174 jars (36 jars through Harvestly,82 jars at Farmers Market,24 jars wholesale to local grocery stores,26 in person from my commercial kitchen,and 6 at events). ●I donated 30 jars of kimchi to AAPI SLO’s Asian American Festival on May 11th. ●I served 500 attendees at the SLO Pickle Festival on October 5th. ●I’ve made 74 social media posts across TikTok,Instagram,and Facebook,which have garnered 278 engagements. Financial Report:(A financial statement detailing how the City’s grant funding has been or planned to be allocated.) Balance: $25,000.00 spent $0 remaining Equipment -$4,663.17 Supplies -$4,223.83 Rent -$9,350.00 Permits &Licensing -$3,724.78 Insurance -$578.00 Food Costs -$2,265.42 Services -$194.80 Page 48 of 82 Grant Metrics &Performance Outcomes Template (must be reported by all grant recipients) Metrics/Performance Outcomes Results 1.Number of individuals served. Served refers to individuals specifically receiving any of the following: •Services directly provided by the grantee; •Program/project applications,instructions,trainings,products, or concepts; •Information (orally or in printed,in-person,virtually or over the phone); •Any materials (flyers,brochures,etc.); 1,221 individuals served 278 social media engagements 239 students at KASA presentations 30 jars donated 174 jars sold 500 event attendees served 2.Number of service hours provided. Service hours refer to any amount of time that is directly linked or performed as part of the work defined within the scope of the agreement signed by the grantee. 810 service hours provided 1,356 hours making kimchi 96 hours outreach/events 3.Number of activities. Activities can be defined as gatherings either the grantee organizes or attends.In either case,grantee must specify if it attended or organized the activity.This can be events,workshops,panel discussions,roundtable discussions,presentations,etc. •Activities refer to any gathering designed to promote programs, services,or concepts related to the components within the scope of the agreement signed by the grantee. •Activities also refer to any gathering designed to create awareness of the programs,services,or concepts related to the components as defined within the agreement signed by the grantee. •Activities also refer to any gathering designed to outreach, engage,consult,and collaborate with the community as defined within the agreement signed by the grantee 5 activities Asian American Festival KASA Presentation Podcast Interview Kimchi How-To Videos Pickle Festival 5.Report perception of services provided and/or engaged activities. Survey individuals to measure the impact of the services provided and/or engaged activities as described within the scope of the agreement signed by the grantee.Report in percent and total number of individuals served. Technical assistance can be provided to grantee in development of questions. 905 individuals served 239 KASA students Approx 600 Asian American Festival Goers 204 Kimchi purchases+donations 500 Pickle Festival Goers Page 49 of 82 6.Demographic Questions Demographic questions are highly encouraged to be completed by ndividuals that fall within the grantee’s scope of services.A current demographic survey is available and is highly encouraged for grantee to reach out for the demographic survey template. Name:Trina Lee Title:Grantee Phone:805-704-5004 Signature:Date:Dec 22th,2024 E-mail:banchanfoods@gmail.com Page 50 of 82