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HomeMy WebLinkAbout01-65 , i. Resolution No. 01-65 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 a Service Agreement on behalf of the City of Elgin with the Elgin Area Chamber of Commerce for the promotion of 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 14 , 2001 Adopted: March 14 , 2001 Omnibus Vote : Yeas : 6 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk .•0, .4. REVISED DRAFT 02/06/01 SERVICE AGREEMENT THIS AGREEMENT is made and entered into on this 14th day of March, 2001, 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 attraction 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 covenants 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, 2001 . The third payment shall be made by July 1, 2001 . The fourth payment shall be made by October 1, 2001 . 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 . 4 . The Chamber shall follow its Years 2000-2004 prioritized five-year strategy focusing on: a) Visit a minimum of 30 specific businesses and industries where retention effort will likely be most productive . 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) Continued development of the Image Enhancement 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) Formalize the Government Relations Committee, thus allowing the Chamber to design and implement 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 relocation 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 shall work with property owners and the City to develop options for re-use or redevelopment of these sites . During the term of this agreement, specific attention shall be directed to the following redevelopment areas : Fox River Plaza, Town & Country Shopping Center and the Safety-Kleen Office Site . 6 . The Chamber shall update the directory of area manufacturers and distributors, including industrial classification, e-mail address and other useful information. 7 . The Chamber shall 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, the National Restaurant Association and the National Manufacturing Week Show during 2001 . 9 . The Chamber shall organize two 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 . The Chamber shall continue the use of electronic marketing material that promotes Elgin to targeted site selectors and developers, specifically through its web site . This material includes available buildings and sites and their characteristics, an in-depth community profile, workforce information, available incentives and other information now required by national site selectors . 11 . Representatives of the Chamber shall continue regular meetings with representatives of the Downtown Neighborhood Association of Elgin, and other development- related agencies, as recommended by the City. The Chamber shall serve as the coordinator of these meetings . 12 . The Chamber shall continue its staff support to the City Central Business District and other community development programs . 13 . The Chamber shall continue working with the other downtown organizations and downtown business owners, providing assistance to downtown business owners . 14 . The Chamber shall 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 two written reports detailing the disbursement of $172, 000 . These reports shall be provided to the City Council by July 31, 2001 and January 31, 2002 , and shall be submitted to the City Manager' s Office, City Hall, 150 Dexter Court, Elgin, IL, 60120 . 17 . Quarterly activity reports summarizing services provided shall be presented to the City Council, with a mid-year update and a year-end presentation by no later that February 28, 2002 . . • 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 . 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 $172 , 000 consideration as and for liquidated damages . 20 . 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. 21 . In the event this agreement is terminated or in the event the program for which City funds provided hereunder to be applied is discontinued or the Chamber ceases operations prior to December 31, 2001, 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. 22 . This agreement shall not be construed so as to create a partnership, joint venture, employment or other agency relationship between the parties hereto . 23 . 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 BY ‘42fp'e°,4444016 Ed Schock Mayor Attest: _IN4A-t/41 PVCCA.A.4-- City Clerk ELGIN AREA CHAMBER OF COMMERCE A not-for-profit corporation BY "\k/i/jkj Leo Nelson President City of Elgin Agenda Item No. (.1.0 *4TED 1,V6 7 a E r n 1 b;;_-- February 14 , 2001 G rt t: - ', N , I w TO: Mayor and Members of the City Council ; -�.-^.p FROM: Joyce A. Parker, City Manager ECONOMIC GROWTH 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 2001 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 8 full-time employees . Currently, there are approximately 700 members of the Chamber, including approximately 100 new members added in 2000 . 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 2000 fiscal year, a total of 963 businesses located or expanded in the Elgin area, resulting in addition or retention of 2, 483 jobs . The Elgin economy continues its strong performance with an average unemployment rate of 5 . 5%, up slightly from 5 . 4% a year ago. As part of the 2001 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 14, 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 retain the Business Retention Committee, continue the strategy of 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 maintaining the 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. Continued development of the 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 . Formalize the 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. Elgin Area Chamber of Commerce PSA February 14, 2000 Page 3 7 . Site Inventory. 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 . Trade Shows . As part of the Chamber' s Business Recruitment program, attend two regional trade shows, the National Restaurant Association and the National Manufacturing Week Show during 2001 . 9 . Broker Tours . The Chamber will organize two 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 use 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 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 . 1 , 1 Elgin Area Chamber of Commerce PSA February 14 , 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 two written reports detailing the disbursement of $172, 000 . These reports shall be provided to the City Council by May 31, 2001 and December 31, 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. FINANCIAL IMPACT Annual support funding of $101, 000 is allocated in the 2001 General Fund budget account number (010-0902-709 . 80-02) . Funding for additional support of $71, 000 is budgeted in the 2001 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 14 , 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, J ce A. Parker City Manager RHM: sp Attachment