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HomeMy WebLinkAbout00-64 • r ' Resolution No. 00-64 RESOLUTION AUTHORIZING EXECUTION OF A SERVICE AGREEMENT WITH THE ELGIN AREA CHAMBER OF COMMERCE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Ed Schock, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an agreement on behalf of the City of Elgin with the Elgin Area Chamber of Commerce for economic development activity, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: March 8 , 2000 Adopted: March 8 , 2000 Omnibus Vote : Yeas 7 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk SERVICE AGREEMENT THIS AGREEMENT is made and entered into on this / '7 / day of /h ,-ie c , 1999, by and between the ELGIN AREA CHAMBER OF COMMERCE, a not-for-profit organization, (hereinafter referred to as the "Chamber") and the CITY OF ELGIN, Illinois, a municipal corporation, (hereinafter referred to as the "CITY") WHEREAS, The City of Elgin, Illinois has determined it to serve a beneficial public purpose to foster economic growth within the community through the expansion and redevelopment of existing business and industry; and WHEREAS, The City of Elgin has further determined it to serve a beneficial public purpose to foster economic growth through the atttraction of new business and industry; and WHEREAS, The Chamber has developed an economic development program to be implemented by the Economic Development Council (hereafter referred to as the "EDC") ; and NOW, THEREFORE, in consideration of the mutual promises and convenants contained herein, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows : 1 . The City shall pay to Chamber the sum of $172, 000 to be made in four equal payments . The first payment will be made following the execution of this agreement . The second payment shall be made by April 1, 2000 . The third payment shall be made by July 1, 2000 . The fourth payment shall be made by October 1, 2000 . 2 . Chamber shall address all inquiries and requests made pursuant to this agreement to City' s Director of Economic Development and Business Services . 3 . Chamber' shall apply the $172, 000 contribution to operating expenses such as staff salary and benefits, rent, meeting expenses, and expenses associated with sponsorship of community events . See Attachment A for a line-item budget and program measurements . 4 . The Chamber will follow its Years 2000-2004 prioritized five-year strategy focusing on: a) Specific businesses and industries where retention effort will likely be most productive, including the establishment of a Business Retention Committee . b) Workforce development initiatives, including labor market analysis, wage and benefit survey, and the establishment of a Workforce Development Committee to oversee and coordinate program efforts with other workforce development agencies, such as U-46, Elgin Community College, The Illinois Department of Employment Security, Kane County and Judson College . • c) Creation of an Image Enhancement and Awareness Committee, whose purpose is to educate regional businesses, regional realtors, various other agencies and the general public about the positive growth climate and quality of life of Elgin. d) Establishment of a formal Government Relations Committee, thus allowing the Chamber to design and implement a pro-active legislative policy initiatives at both the state and federal level, complementing present efforts by the City. e) Continuation of work with prospective new businesses that are interested in relocating to Elgin. The Chamber will be the lead agency in promoting and marketing Elgin in the development community. 5 . As business locations within Elgin turnover, the Chamber will work with property owners and the City to develop options for re-use or redevelopment of the site . 6 . The Chamber will update the directory of area manufactures and distributors, including industrial classification, e-mail address and other useful information. 7 . The Chamber will maintain a current inventory of development and redevelopment sites . The inventory will include information about the site size, zoning, and other pertinent site characteristics . 8 . As part of the Chamber' s Business Recruitment program, attend two regional trade shows, one commercial and one industrial during 2000 . 9 . The Chamber will organize two or more site selector activities for Chicago-area developers, sites consultants and brokers to familiarize them with Elgin development areas, general contractors, banks/lending institutions, and other community resources . 10 . The Chamber will continue the development of electronic marketing material that promotes Elgin to targeted site selectors and developers, specifically the updating of its web site . This material will include available buildings and sites and their characteristics, an in- depth community profile, workforce information, permitting, available incentives and other information now required by national site selectors . 11 . Representatives of the Chamber shall continue the quarterly meetings with representatives of the New Century Partnership for Elgin and the Downtown Neighborhood Association of Elgin. The Chamber will serve as the coordinator of these meetings . f . 12 . The Chamber will continue its staff support to the City Central Business District and other community development programs . 13 . The Chamber will continue working with the other downtown organizations and downtown business owners, providing assistance to downtown business owners . 14 . The Chamber will continue to work in conjunction with the Suburban Minority Business Council (SMBC) , and the various business assistance programs at Elgin Community College, for the purpose of encouraging the growth of Elgin' s minority businesses and small businesses in general . 15 . The Chamber shall facilitate the activities and meetings of the EDC. The EDC shall function consistent with the description provided attached as Attachment A. 16 . The Chamber shall provide a written report detailing the disbursement of $172, 000 . This report shall be provided to the City Council by January 1, 2001 and shall provide a summary of program activity. 17 . Quarterly activity reports summarizing services provided shall be provided to the City Council before each draw of the contract, with mid-year and year-end presentations to the Mayor and City Council . 18 . The City shall have the right to review all accounting records related to the use of the $172, 000, given 72 hours notice, and at a time agreed upon by both parties. 19 . The Chamber shall to the fullest extent permitted by law indemnify, defend and hold harmless the City, its officers, employees, agents, boards and commissions from and against any and all claims, suits, judgements, costs, attorney' s fees, damages or other relief arising out of or in any way connected with the existence of or the performance of this agreement including but not limited to as a result of any negligent or unlawful actions by the Chamber, its officers, employees or agents in the performance of this agreement . Nothing herein affects the Chamber' s duty to defend the City. In the event of any action against the City, its officers, employees, agents, boards or commissions covered by the foregoing duty to indemnify, defend and hold harmless such action shall be defended by legal counsel of the City' s choosing. 20 . In the agreement event this a ment is terminated or in the event the program for which City funds provided hereunder to be operations is disconti nued or the Chamber ceases prior to December 31, 2000 , the Chamber shall refund to the City on a prorated basis funds paid hereunder for the portion of the year remaining after any such termination or for the portion of the year such programs or the Chamber operations were not conducted. 21 . This agreem ent shall not be construed so as to create a partnership, joint venture, employment or other agency relationship between the parties hereto . 22 . This agreement shall be in full force and in effect from the date of its execution through December 31, 2000 . IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date and year written above . CITY OF ELGIN, A municipal corporation BY Ed Schock Mayor Attest : City Clerk ELGIN AREA HAMBER OF COMMERCE A not-for profit corporation W,/ ob BY Robert H. Car i President ATTACHMENT "A" CITY OF ELGIN FY 2000 Service Agreement with the Elgin Area Chamber of Commerce PROGRAM CATEGORIES: Percent of Programs Workforce Development $ 37,044 24% Business Retention & Expansion $ 51,177 33% Image Enhancement&Awareness $ 29,895 19% Government Relations $ 6,349 4% Business Recruitment $ 30,335 20% Total Program Budget: $ 154,800 100% Program Costs/Percentage of City Contract: $ 154,800 90% Indirect Administrative Cost Allocation: 17,200 10% GRAND TOTAL: $ 172,000 100% Page I WORKFORCE DEVELOPMENT Expenditures In cooperation with existing regional workforce development agencies, including Elgin Community College, KDK and others, provide a comprehensive and cooperative workforce initiative. (Subject to funding.) Goal#1: Establish new Workforce Development Coordinating Committee to increase training incentive funding by 25 percent to ECC. Develop strategic plan. ED support staff time (500 staff hours x$28.49 per hour) $14,248 Total Workforce Development Coordinating Committee: $14,248 Goal#2: Increase the number of participants in skill set training by 5 percent per year. Includes ESL and other minority training programs. ED support staff time (400 staff hours x$28.49 per hour) $11,398 Total Minority Training Programs: $11,398 Baseline study of workforce profile, media campaign to encourage residents to work locally. Goal: increase local workforce by 5 percent. ED support staff time (300 staff hours x$28.49 per hour) $8,549 Total Workforce Campaign: $8,549 Website Development: Develop an up-to-date Economic Development Website, which will include links to local employers and listings of local job availability. ED support staff time (100 staff hours x$28.49 per hour) $2,849 Total Website Development: $2,849 Action Steps and Performance Measures: Action Step#1: Coordinate effort with existing workforce development agencies. Utilize the Chamber's Human Resource Council private sector members and other similar agencies. Page 2 Action Step#2: Conduct labor availability survey of market area, in conjunction with Kane County Economic Development Department and other partnering agencies. Utilize established survey instrument through third party. Action Step#3: Conduct annual wage and benefit survey. This survey should be conducted in partnership with other Kane County economic development agencies. Action Step#4: Develop an up-to-date Economic Development Website, which will include links to local employers and listings of local job availability. Measurement#1: Establishment of the Workforce Development Committee. Measurement#2: Increase annual funding by $25,000, or$157,500 over five years. Measurement#3: Increase the number of skill training participants by 250 students. Measurement#4: Complete the annual wage and benefit survey by year-end in cooperation with the Kane County Economic Development Department. TOTAL WORKFORCE DEVELOPMENT: $37,044 Page 3 BUSINESS RETENTION AND EXPANSION Expenditures Retention and expansion of our existing industry base must be vigorously pursued to eliminate any possible employment and capital investment erosion, as well as to support possible expansion opportunities. Formal Site Visits: Goal#1: Conduct 50 on-site visitations per year of local industry to identify issues that inhibit, and the opportunities that promote growth of our current economic base. Make quarterly retention visits to key corporate headquarter offices outside the region. Volunteer committee members and local officials will assist in these efforts. Site visitations staff time (1,000 hours x$28.49 per hour) $ 28,495 Related materials $5,000 $ 5,000 Postage $ 500 Quarterly visits, including airfare, hotel and related travel for two participants, each of four trips Total Site Visitations: $33,995 Research and Support: Goal#2: Expand tax incentives, downtown redevelopment and small/minority business services, and access to loan and investment sources, all in support of local partners and business. Specific projects will include the Downtown Elgin Technology Project. Related staff time (200 hours x$28.49 per hour) $5,699 Use of outside consultants, Home Page development, and other resources $2,500 Goal#3: Conduct formal baseline studies to identify strengths, weaknesses, opportunities, and threats, and respond accordingly to findings. (June) Related staff time (100 hours x$28.49 per hour) $2,849 Goal #4: Conduct related wage and salary survey annually, business directory, and other related research demanded by existing businesses. Outsource modeling, (E.g., Pathfinders)fee $3,000 Related staff time (110 hours x$28.49 per hour) $3,134 Total Research Activities: $17,183 Page 4 Action Steps and Performance Measures: Action Step#1 - Formal Site Visits: (1st qtr.) Conduct 75 on-site visitations per year of local industry to identify issues that inhibit, and the opportunities that promote growth of our current economic base. Program will utilize Synchronist Business Information System, or similar survey instrument and reporting system. Volunteer committee members and local officials will assist in these efforts. Action Step#2: Research and Support: (1st Qtr.) Using information from retention visits, begin updating master employer database, tracking new and failing businesses. Action Step#3: Regarding the Technology Action Team, provide staff support and leadership to develop the area's Information Technology infrastructure. Assist with media and public education efforts. Action Step#4: Coordinate information for the wage and salary survey, business directory, and other related research demanded by existing businesses. Action Step#5: Expand tax incentives, downtown redevelopment and small/minority business services, and access to loan and investment sources, all in support of local partners and business. Specific projects will include projects for the Downtown Elgin Technology Project. Measurement#1: Establish the Business Retention & Expansion Committee. Measurement#2: Complete at least 50 on-site visits in the balance of 2000. Measurement#3: Document the recruitment of at least two new Downtown technology/information companies. Measurement#4: Complete the update of the master employer database for the Greater Elgin Area. The database will measure the turnover rate of businesses, identify the number of businesses by the 8 SIC categories and the number of employees in each of those categories. TOTAL BUSINESS RETENTION AND EXPANSION: $51,177 • Page 5 IMAGE ENHANCEMENT AND AWARENESS Expenditures Goal: Develop a regional public relations program. Action Steps and Performance Measures: Action Step#1: Conduct an annual media advertising campaign aimed at local residents, who commute to other locations for work. Contract staff and materials $3,000 Related ED support staff time (300 hours x$28.49 per hour) $8,548 Total Commuter Campaign: $11,548 Action Step#2: Conduct an annual media advertising campaign aimed at "High Tech"and"Research and Development"industries. Contract staff and materials $4,000 Related ED support staff time (100 hours x$28.49 per hour) $2,849 Total High Tech Campaign: $6,849 Develop a quarterly information mailer to "High Tech"and "Research and Development"industries. Contract staff and materials $2,949 Related ED support staff time (300 hours x$28.49 per hour) $8,548 Total High Tech Mailer Campaign: $11,497 Total Image Enhancement and Awareness: $29,895 Measurement: Successful completion of activities. Page 6 GOVERNMENT RELATIONS Expenditures Provide funding for Government Relations Committee members to make two annual visits to legislators in Springfield, Illinois and two annual visits to legislators in Washington, D.C. Contract staff and materials $3,500 Related ED support staff time (100 hours x$28.49 per hour) $2,849 Total Government Relations: $6,349 Action Steps and Performance Measures: Action Step#1: Organized lobby effort sponsored by Illinois Development Council, Illinois State Chamber or similar organized effort. Action Step#2: Other related local lobbying effort determined by Committee in Springfield or Washington. Measurement: Completion of tasks. Page 7 BUSINESS RECRUITMENT Expenditures Goal #1: Make information about the Elgin Area easily accessible to site selectors and brokers of our target industries. Goal#2: Develop the information requested by our target industries and present it to them in the format they expect. Internet Marketing: Action Step#1: Purchase of services from American Community Network Electronic marketing of Elgin Area (Internet marketing). $1,190 Action Step#2: Submission of articles to Site Selection, Area Development(Qtrly) or comparable national or regional publications. Partnering Activities: Action Step#4: Continued participation with World Business Chicago $500 Action Step#5: Participation in IDCCA/IDC Marketing Committee trade show activities at 1DRC, NACORE and other targeted industries $1,000 Action Step#6: Participate in Kane County trade show efforts in Chicago area. $1,000 Misc. recruitment travel $500 Trade show materials $500 Related Staff Time: Related ED support staff time (900 hours x$28.49 per hour) $25,645 Total: $30,335 Measurement: Completion of tasks. Page 8 YEAR 2000 PROGRAM PLAN FOR "CHALLENGE 21" FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER PROGRAM Jan Feb March Apr May Jun Jul Aug Sep Oct Nov Dec Establish committees(completed) `"-Chamber Website Development . a f Fr el „Workforce Development Coordinate w/existin• a•encies Conduct labor survey w/partners tAikr&si.4.-41:41ALIK.8 Conduct annual wage/benefit survey Programs for 2001-2004 terR • Business Retention&Expansion Develop/adopt survey instrument X .° Conduct 50-75 formal site visits Slte visit fe ortS tf P c'` cS vAVM, Update regional employer database Recommendations/report Programs for 2001-2004 Image Enhancement/Awareness Develo media cam al n blue lint Residential target component Target industries component Select initial local project ittagfattiratikattati/ Develop coordination/materials Programs for 2001-2004 =`fit=..... . Government Relations Organize issues Coordinate lobbying efforts ` ,',. - tatla fea.>: Programs for 2001-2004 Business Recruitment Coordinate efforts w/Retention Review/update databases Develop Internet strategy Develop print media strategy :•. ,_ : .. �: s Partnership activities(WBC,IDC, Kane) Programs for 2001-2004 Page 9 YEARS 2001-2004 PROGRAM PLAN FOR "CHALLENGE 21" I I I I I I 1 I I YEAR 2001 YEAR 2002 YEAR 2003 YEAR 2004 GOALS!MEASURES 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. General Goals Raise average annual salary by • - 1796/five s/1999 base of$31,400 ' �'`" .S3 sir` C' z t a.ry +, z � 2 yf I .kah e>I xr3a 3 a a sir S xtl3 �z a Fla tetb>i$.I ada xzv3 roi f¢�saa� I111 ? `�z t,: $il .r it r' t c* Y 's '41r 1410141 urn- t 6 .�• _ •Increase tax base by$50 mm I-t � � w�+„ �,,..�` ��ca'���ur.�r +.�rt �.��b�'',..�s�, �it-,x �. ��+' ,���;. • Increase capital investments by$200 mm ,.n,: u _. . ' °•M. ,< .agog,... ti , rai :. Z. r,.. :*. Mati..=. :_; • Workforce Development Increase annual workforce funding by y.�-,' *wit yM s�f : • $157,000 or 25%to ECC-review � r�° `.rn ` g `4-o-'.rtx c�t r t ` � � el r —Increase skill training participants at ECC and other encies 250 z `" sr �I` * z x5 * ' r` a9 by Nr• ���} .�.+: ..�.�c,,fi."� ka'� �r��'. a�:':�-a�' w..ti'."�'sit.. <. Com•ete annual sury- —� - Business Retention&Expansion Recruit at least two Technology businesses to Downtown annually Y Recruit em.to ees/trainin•for area businesses-meet demand Have SEED Downtown,r ms in'lace t4 ,f. . ' *'° Com.lete 50-75 annual site visits — Annual update of master databases Increase overall retention by 10% image Enhancement/Awareness Put local media campaign in place Local image improvement plan to attract high tech firms Local image campaign to businesses Produce related media campaigns Government Relations Semi-annual lobbying efforts on local issues tal3..s i m iti tilirtiatZeit .iGalytam i a'at_. z...A: ice: Business Recruitment A ressive Internet information cam i n-national standards Participation in trade shows xy with•.rtners %�n c*-,. r�` ,,, t :, e; NA Weed media articles Recruit at least 10%of prospects >g t l ;":'r; Page 10 04c, Ei.„7 • "P' • �`� °'" "' 41, f � City of Elgin Agenda Item No. February 23 , 2000 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Elgin Area Chamber of Commerce Purchase of Service Agreement PURPOSE The purpose of this memorandum is to provide information for the Mayor and members of the City Council to consider a Purchase of Service Agreement with the Elgin Area Chamber of Commerce for economic development activity. BACKGROUND The 2000 Budget includes a total of $172, 000 for support of the Elgin Area Chamber of Commerce related to economic development activity. The Elgin Area Chamber of Commerce was chartered in 1908 as the Elgin Commercial Club. Since that time, the Chamber has served the community with the mission to be "the collective voice of commerce" as it " maintains and improves the economic environment, and provides leadership for improving the quality of life in the Elgin area" . The Chamber has a professional staff of 5 full-time and 3 part-time employees . Currently, there are approximately 684 members of the Chamber, including approximately 80 new members added in 1999 . The City provides direct financial support for economic development activities of the Chamber. The economic development budget for the current year is attached. The Chamber continues to be a vital partner in local economic growth through efforts to retain and expand existing businesses and attract new businesses to the area. During the 1999 fiscal year, a total of 305 businesses located or expanded in the Elgin area, resulting in addition or retention of 1269 jobs. The Elgin economy continues its strong performance with an unemployment rate of 5 .4%, up slightly from 5 . 3% a year ago. As part of the 2000 Budget process, the Elgin Area Chamber of Commerce was granted $172, 000 from the City to serve as the community' s lead economic development agency. • Elgin Area Chamber of Commerce PSA February 23 , 2000 Page 2 The Chamber of Commerce, working with the City staff, proposes that this funding be utilized to support the following programs : 1 . Business Retention and Expansion Efforts. The Chamber will develop a Business Retention Committee and prioritize a strategy focusing on specific businesses and industries where retention efforts will likely be most productive . 2 . Workforce Development Initiative. Workforce development initiatives, including labor market analysis, wage and benefit survey, and the establishment of a Workforce Development Committee to oversee and coordinate program efforts with other workforce development agencies, such as U-46 , Elgin Community college, The Illinois Department of Employment Security, Kane County and Judson College . 3 . Image Enhancement. Create an Image Enhancement and Awareness Committee, whose purpose is to educate regional businesses, regional realtors, various other agencies and the general public about the positive growth climate and quality of life of Elgin. 4 . Government Relations. Establishment of a formal Government Relations Committee, thus allowing the Chamber to design and implement a pro- active legislative policy initiatives at both the state and federal level, complementing present efforts by the City. 5 . New Business Relocation. Continuation of work with prospective new businesses that are interested in relocation to Elgin. The Chamber will be the lead agency in promoting and marketing Elgin in the development community. As business locations within Elgin turnover, the Chamber will work with property owners and the City to develop options for re-use or redevelopment of the site . 6 . Business Directory. The Chamber will update the directory of area manufactures and distributors, including industrial classification, e-mail address and other useful information. 7 . Site Inventory. The Chamber will maintain a current inventory of development and redevelopment sites . Elgin Area Chamber of Commerce PSA February 23 , 2000 Page 3 The inventory will include information about the site size, zoning, and other pertinent site characteristics . 8 . Trade Shows. As part of the Chamber' s Business Recruitment program, attend two regional trade shows, one commercial and one industrial during 2000 . 9 . Broker Tours . The Chamber will organize two or more site selector activities for Chicago-area developers, site consultants and brokers to familiarize them with Elgin development areas, general contractors, banks/lending institutions, and other community resources . 10 . Electronic Marketing Material . The Chamber will continue the development of electronic marketing material that promotes Elgin to targeted site selectors and developers, specifically the updating of its web site . This material will include available buildings and sites and their characteristics, an in- depth community profile, workforce information, permitting, available incentives and other information now required by national site selectors . 11 . Center City Coordination and Cooperation. Representatives of the Chamber shall coordinate quarterly meetings with representatives of the New Century Partnership for Elgin and the Downtown Neighborhood Association of Elgin. The Chamber will continue its staff support to the City Central Business District and other community development programs . The Chamber will continue working with the other downtown organizations and downtown business owners, providing assistance to downtown business owners . 12 . Minority Business Issues . The Chamber will continue to work in conjunction with the Suburban Minority Business Council (SMBC) , and the various business assistance programs at Elgin Community College, for the purpose of encouraging the growth of Elgin' s minority businesses and small businesses in general . Elgin Area Chamber of Commerce PSA February 23 , 2000 Page 4 13 . Economic Development Council . The Chamber shall facilitate the activities and meetings of the EDC. The EDC function shall be consistent with the description provided attached as Attachment A. 14 . Reporting Requirements . The Chamber shall provide a written report detailing the disbursement of $172 , 000 . This report shall be provided to the City Council by January 1, 2001 and shall provide a summary of program activity. Quarterly activity reports summarizing services provided shall be provided to the City Council before each draw of the contract, with mid-year and year-end presentations to the Mayor and City Council . A purchase of Service Agreement has been drafted by the Elgin Area Chamber of Commerce President and City staff for City Council consideration. The agreement is designed to establish the public purpose for City support and provides a mechanism for accountability of the Chamber and the Economic Development Council for the use of public funds . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED The proposed agreement was drafted in conjunction with the Elgin Area Chamber of Commerce . lij\-' FINANCIAL IMPACT Annual support funding of $101, 000 is allocated in the 2000 General Fund budget account number (010-0902-709 . 80-02) . Funding for additional support of $71, 000 is budgeted in the 2000 Riverboat Fund account number (275-0000-791 . 80-02) . Sufficient monies exist to fund the Purchase of Services Agreement . LEGAL IMPACT None . ALTERNATIVES The City Council could approve the agreement as drafted, edit the agreement or decline to provide support to the Elgin Area Chamber of Commerce . Elgin Area Chamber of Commerce PSA February 23 , 2000 Page 5 RECOMMENDATION It is recommended that the City Council approve the Purchase of Service Agreement in the amount of $172 , 000 with the Elgin Area Chamber of Commerce to provide economic development services . Respectfully submitted, Q . J ce . Parker City Manager SLP Attachment