HomeMy WebLinkAbout01-37 Resolution No . 01-37
RESOLUTION
AUTHORIZING EXECUTION OF A SERVICE AGREEMENT WITH
THE DOWNTOWN NEIGHBORHOOD ASSOCIATION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum,
City Clerk, be and are hereby authorized and directed to execute
a service agreement on behalf of the City of Elgin with the
Downtown Neighborhood Association to provide support for the
development and enhancement of the center city, a copy of which
is attached hereto and made a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: February 14, 2001
Adopted: February 14, 2001
Vote: Yeas : 7 Nays : 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
PURCHASE OF SERVICE AGREEMENT
Ap,�°�e�11'� THIS AGREEMENT is made and entered into on the t day of
,gyp , 2001, by and between the DOWNTOWN NEIGHBORHOOD ASSOCIATION, an
Illinois not-for-profit organization, (hereinafter referred to as the
" DNA" ) and the CITY OF ELGIN, Illinois, a municipal corporation,
(hereinafter referred to as the "CITY" ) .
WHEREAS, the City has determined it to serve a beneficial public
purpose to provide support for the development and enhancement of the
center city; and
WHEREAS, the DNA is a membership-based organization formed to
create, support, and sustain revitalization efforts in downtown Elgin.
WHEREAS, the revitalization of Downtown Elgin will result in
increased property values and increased job opportunities; and
WHEREAS, the City is a home rule unit which may exercise any power
and perform any function pertaining to its government and affairs; and
WHEREAS, the revitalization of Downtown Elgin including increased
property values and job opportunities therein pertains to the government
and affairs of the City.
NOW, THEREFORE, in consideration of the mutual promises and
covenants contained herein, the sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:
1. The City shall pay to DNA the total sum of Sixty Thousand
Dollars and no/100ths ($60, 000) to be made in three equal
payments of Twenty Thousand Dollars and no/100ths ($20, 000) .
The first payment will be made following the execution of this
agreement. The second payment shall be made by May 1, 2001 .
The third payment shall be made by August 1, 2001 .
2. DNA shall conduct all of its activities funded pursuant to
this agreement, including but not limited to, the providing of
support for the development and enhancement of the center
city, in accordance and in compliance with all requirements of
law.
3. DNA shall address all inquiries and requests made pursuant to
this agreement to the City' s Director of Economic Development
and Business Services.
4 . DNA shall apply the $60, 000 contribution to operating expenses
such as staff salary and benefits, rent, meeting expenses, and
expenses associated with sponsorship of community events .
5. DNA shall host a series of Downtown Issue Forums.
6. DNA shall implement and/or assist in multiple community events
to be held in the Center City such as the 4th of July Parade,
Harvest Market, Fiesta Salsa and Window Wonderland.
7. Representatives of DNA shall meet not less than quarterly with
representatives of the Elgin Area Chamber of Commerce.
8 . DNA shall create a detailed property map for downtown,
determine the needs of downtown property owners, market the
downtown directory and provide information about business
development and recruitment.
9. DNA shall provide two written reports detailing the
disbursement of $60, 000. These reports shall be provided to
the City Council by May 31, 2001, and December 31, 2001, and
shall include all program activity. These reports shall be
submitted to the City Manager' s Office, City Hall, 150 Dexter
Court, Elgin, IL, 60120.
10. DNA shall provide City with financial statements relative to
the organization' s total operations . These statements shall
be provided on or before July 32 , 2001 and December 31, 2001 .
11. The City shall have the right to review all accounting records
related to the use to the $60, 000, given 72 hour notice, and
at a time agreed upon by both parties.
12. DNA agrees to and it shall 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 resulting from or through or alleged to
arise out of any negligent acts or omissions of DNA or its
officers, employees or agents in the performance of this
agreement. Nothing herein affects DNA' s duty to defend the
City. In the event of any action against the City, its
officers, employees, agents, boards and commissions covered by
the foregoing duty to indemnify, and defend and hold harmless,
such action shall be defended by legal counsel of the City' s
choosing.
14 . Failure to perform the above services to the satisfaction of
the City Council shall result in a termination of this
agreement and the refund of the $60, 000 consideration (plus
reasonable costs and attorney' s fees, in the event City is
required to litigate to retrieve said funds) as and for
liquidated damages.
15. In the event this agreement is terminated or in the event the
programs for which the City funds provided herein are to be
applied are discontinued or DNA ceases its operations prior to
December 31, 2001, DNA shall refund to the City on a prorata
basis the funds paid hereunder for the portion of the year
remaining after any such termination or for the portion of the
•
year such programs of DNA operations were not conducted.
16. This agreement shall not be construed so as to create a
partnership, joint venture, employment or other agency
relationship between the parties hereto.
17 . This agreement shall be subject to and governed by the laws of
the State of Illinois. Venue for the resolution of any
disputes or the enforcement of any rights pursuant to this
agreement shall be in the Circuit Court of Kane County,
Illinois.
18 . This agreement shall be in full force and in effect from the
date of its execution through December 31, 2001 .
IN WITNESS WHEREOF, the parties hereto have executed this agreement
on the date and year written above.
CITY OF ELGIN
a municipal corporation
p
Attest:
1414-41.,
City Clerk
Downtown Neighborhood
Association of Elgin, a not-for-
pro corpor_ ion
By /1
Joh St: f
Pre 'de t
•
vw ti
A
'( ', ; City of Elgin Agenda Item No.
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s"4TED'E'' C !"'Ii
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February 14, 2001 I � 4'� _‘ '
M ri
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TO: Mayor and Member of the City Council ALIVE DOWNTOWN
FROM: Joyce A. Parker, City Manager
SUBJECT: Downtown Neighborhood Association Purchase of Service
Agreement
PURPOSE
The purpose of the memorandum is to provide information to the
Mayor and members of City Council to consider a Purchase of Service
Agreement with the Downtown Neighborhood Association (DNA) for
2001 .
BACKGROUND
The Downtown Neighborhood Association is a grass-roots, membership-
based organization formed to create, support and sustain
revitalization efforts in downtown Elgin. Members include downtown
businesses, civic and social service organizations, property
owners, residents, surrounding neighborhood and others interested
in revitalization. Currently, the DNA has over 100 members .
DNA' s first meeting was held December 1997 and the group was
formally recognized as an Illinois 501c (3) not-for-profit
organization in April 1998 . In DNA' s brief existence, it has
become very active in reaching out to the community and bring
together many downtown interests . The Downtown Neighborhood
Association is modeled after the Main Street Program, a
revitalization strategy employed in many Illinois communities and
cities nationwide.
As part of the 2001 budget process, the Downtown Neighborhood
Association (DNA) requested and was granted $60, 000 from the City
for PP
ram ro support . DNA had proposed that this funding be
program
utilized to support the following programs :
• Market Downtown Businesses and Properties-The DNA will create
a detailed property map for downtown, determine the needs of
downtown property owners, market the downtown directory, and
provide information about business development and
recruitment .
•
DNA Purchase of Service Agreement
February 14 , 2001
Page 2
• Host a Series of Downtown Forums-Previous forums have included
Design Guidelines, Safety and Lighting, and the Family
Recreation Center.
• Continue to design and promote DNA and partner grant programs-
The DNA will increase the Restaurant Assistant Program, Facade
Improvement Program, E-Elgin Technology Grant .
• Coordinate efforts with other relevant organizations-The DNA
will be active with the Chamber of Commerce, the
Riverfront/Downtown Project Management Team, the E-Elgin
Technology Action Team, Neighborhood Council, City of Elgin
staff, and others .
• Downtown event sponsorship-The DNA will implement and/or
assist in multiple community events to be held in the center
city such as the 4th of July Parade, Harvest Market, Fiesta
Salsa, and Window Wonderland.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
The proposed agreement was drafted in conjunction with the DNA
Executive Director Kevin Nelson.
FINANCIAL IMPACT
Funding of $60, 000 is included in the 2001 budget account number
010-0902-709 . 80-14 .
LEGAL IMPACT
None .
ALTERNATIVES
The City Council could approve the agreement as drafted, edit the
agreement or decline to provide support to the Downtown
Neighborhood Association.
DNA Purchase of Service Agreement
February 14, 2001
Page 3
RECOMMENDATION
It is recommended that the City Council approve the Purchase of
Service Agreement with the Downtown Neighborhood Association.
Res ectfully submitted,
L... Q • ---
o ce . Parker
DKN/od City Manager
Attachments
Feb 02 01 03: 58p DNA of Elgin (847) 488-1449 p. 2
DNA of Elgin 2000-01 Budget 2/1/01
TOTAL 2000 2000 2001 2001 Percentage 2002 2003
Budget Actual Budget Revised Increase Budget Budget
REVENUE
Annual Fund $6,100.00 $0.00 $17.000.00 $24,340 54 #DIV/01 $19,955.00 $22,482.00
Corporate Sponsorships S10,000.00 $2,450.00 $11,000.00 $10,100.00 349% $9,200.00 $9,500.00
Fees $8,000.00 $120.00 $1,000.00 $3,000.00 733% $1,200.00 $1,500.00
Foundation&Grants $5.000.00 $41.099.33 $28,000 00 $104,800 00 -32% $15,500.00 $15,500.00
Purchase of Service Agreement $60,000.00 $60,000.00 550,000.00 $60,000.00 0% $60,000.00 $60,000.00
In-Kind Support $13,500.00 $12,800.00 $11,000.00 $13,050.00 -14% $13,900.00 $13,900.00
Advertising $2,000.00 $4,500.00 $3,000.00 $6,250.00 -33% $4,000.00 $3,500.00
General $3,600.00 $3,500.00 $2,500.00 $2,000.00 -29% $3,000.00 $3,000.00
Insurance $700.00 $0.00 $700.00 $0.00 #0W/0! $0.00 $0.00
Office 57.200 00 $4,800.00 $4,800 00 $4,800.00 0% $5,200.00 $5,200.00
Investment Income $400.00 $135.34 $400.00 $400.00 196% 5400.00 $400.00
Memberships $6,000.00 $4,998.00 $14,000.00 $10,000.00 180% $13.500.00 $17000.00
Misc.Revenue $0.00 $0.00 $0.00 S10,000.00 #DIV/01 $0.00 $0.00
Previous Balance ($6,210.18) ($6,210.18) $0.00 S0 00
Total Revenue $109,000.00 $121,602.67 $136,189.82 $229,480.36 12% $133,655.00 $140,282.00
OPERATING EXPENSES
Salaries-Full Time $54,600.00 $65,064.96 $70,500.00 $67,500.00 8% $76,140.00 $82,231.20
Employment Taxes $1,400.00 $2,572.78 $2,205.36 $2,205.36 -14% $2,403.00 $2,601.92
Insurance-Health $8,000.00 $12,435.04 $9,700.00 $11,000.00 -22% $10,476.00 $11,314.08
Contract Work $2,000.00 $5,202.00 $5,000.00 $5,000.00 -4% $0.00 $0.00
Advertising $1,000.00 $2,585.33 S8,350.00 $7,900.00 223% $4,000.00 $4,000.00
In-Kind Advertising 52,000.00 $4,500.00 $3,000.00 $6,250.00 -33% $4,000.00 $3,600.00
Annual Meeting $1,750 00 51,201.43 $1,750.00 $1,750.00 46% $1,890 00 $2,041.20
Bank Charges $0.00 $50.00 $0.00 $0.00 -100% 50 00 $0.00
Banners $0.00 $4,400.00 $0.00 $8,850.00 -100% $0.00 $0.00
General Meetings $500.00 $778.48 $750.00 $750.00 -4% $540.00 $553.20
In-kind General $3,600.00 $3,500.00 $2,500.00 $2,000.00 -29% $3,000.00 $3,000.00
Governor's Award $0.00 $226.90 $0.00 $0.00 -100% $0.00 $0.00
Graphics $0.00 $D.00 S0 00 $5,000.00 #DIV/01 $0.00 $0.00
Incorporation $100.00 $96.00 $50.00 $50.00 -48% $0.00 $0.00
In-Kind Insurance $700.00 $0.00 S700.00 $700.00 #DN/0! $700.00 $700.00
Insurance $0.00 $860.00 $0.00 $860.00 -100% $900.00 $972.00
Membership Fees $600.00 $425.00 $425.00 $425.00 0% $425.00 $450.00
In-Kind Office Space $7,200.00 $4,800.00 $4,500.00 $4,800.00 0% $5,200.00 $5,200.00
Office Supplies $1,250.00 $4,058.96 $1,350.00 $1,350.00 -67% $1,430.00 $1,516.40
Other Gen Expenses $21,400.00 $6.994.55 $20,500.00 $91,300 D0 193% $15.400.00 $15,400.00
Postage 8 Mailing $1,000.00 $400.00 $725.00 $1,050.00 81% $575.60 $600.00
Printing $2,225.00 $2,140.14 $3,300.00 $3,200.00 54% $1,250.00 $1,250.00
Seminars $2,275.00 $2,063.00 $2,000.00 $2,000.00 -3% $2,000.00 $2,160.00
Subscriptions $300.00 $424.00 $325.00 $325.00 -23% $325.00 $300.00
Telephone $1,500.00 $2,857.76 $2,975.00 $2,975.00 4% $2,761.00 $2,222.00
Water $200.00 $176.52 S240.00 $240.00 36% $240.00 $240.00
Total Operating Expenses S114,000.00 $127,812.85 $141,145.36 $229,480.36 10% $133,655.00 $140,282.00
Excess of Revenue(Expense)
from Operations ($5,000.00) ($6,210.18) ($4,955,54) $0.00 -20% 50.00 $0.00
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