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HomeMy WebLinkAbout02-38 Resolution No. 02-38 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 economic development activity, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: February 13, 2002 Adopted: February 13 , 2002 Omnibus Vote : Yeas : 7 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk Ili Draft 1/15/02 SERVICE AGREEMENT THIS AGREEMENT is made and entered into on this Otte. day of eenua'ry., 2002 , by and between the ELGIN AREA CHAMBER OF COMMERCE, an Illinois 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 staff (hereafter referred to as the "ED" ) ; 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, 2002 . The third payment shall be made by July 1, 2002 . The fourth payment shall be made by October 1, 2002 . 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 six priorities : Workforce Development, Business Retention & Expansion, Enhancing the Elgin Area, Government Relations, Business Recruitment and merging the Technology Action Team with the Chamber Technology Council . 5 . Workforce Development Initiatives proposed for Year 2002 . The Chamber shall : a) Continue collecting labor market information; wage, benefit and salary data; and performing analysis as required. b) Continue as a active participant of the River Valley Investment Development Board (hereinafter referred to as the "Workforce Investment Board (WIB) " ) , the primary workforce oversight agency of the State of Illinois . c) In coordination with the WIB Marketing Committee, further enhance the marketing of Elgin Area workforce and training partners for the purpose of creating a true "One-Stop" partnership; providing coordinated services to employers . d) Use the Workforce Development Committee, established in 2000 , to assist in letters a) through c) . e) Coordinate on Elgin' s behalf with other county, state and federal workforce agencies . f) Continue to facilitate the workforce and training requests made by new and existing Elgin employers . 6 . Business Retention & Expansion Initiatives proposed for Year 2002 . The Chamber shall : a) Visit a minimum of 30 specific businesses and industries where retention effort will likely be most productive . b) Conduct no less than four SIC sector round tables, to be coordinated with the City. E .g. , sectors can be manufacturing, minority-owned businesses, professional, and other categories . c) Prepare an annual joint report to City of Elgin in the first quarter of 2002 . d) Continue to provide marketing assistance for the Safety- Kleen site and the Fox River Plaza site . e) Coordinate Community Asset Fairs for major corporations relocating to Elgin. 7 . Enhancing the Elgin Area Initiatives proposed for Year 2002 . The Chamber shall : a) Complete the 2001 marketing plan, currently contracted to Demi & Cooper. b) Upon completion of the marketing plan, implement said plan, provided the committee raises sufficient revenues to match the City' s contribution. c) Provide additional staff support, as necessary, to implement the plan. 8 . The Government Relations Committee was formalized in 2001, per agreement . For 2002 , the Chamber shall : a) Plan and conduct an "Elgin Day" during the spring legislative session in Springfield at an approximate cost of $50 , 000 . b) Continue to monitor legislation affecting the City and community, coordinating efforts and information with City staff . 9 . Business Recruitment Initiatives proposed for Year 2002 . The Chamber shall : a) Conduct two developer-broker tours : one in the spring and one in the fall . b) Attend the following trade shows in partnership with Kane County Economic Development and the Illinois Department of Commerce & Community Affairs (hereinafter referred to as DCCA) : National Manufacturing Show (NAM) , Association of Industrial Real Estate Brokers (AIREB) , National Plastics Show, and at least one other show designated by the partners . c) Participate as a sponsor at IDRC, and possibly one other national real estate show attended by DCCA. d) Continue the economic development marketing efforts with the U. S . -China Chamber of Commerce, including the feasibility of a trade mission in 2002 . e) Continue to write and distribute quarterly press releases highlighting Elgin. f) Continue a pro-active industrial recruiting program to targeted markets . 10 . The Technology Council Initiatives proposed for Year 2002 . The Chamber shall : a) Complete the merger with the Technology Action Team, providing a high technology strategy in telecommunications for Elgin. b) Continue the technology infrastructure evaluation begun in 2001 by the Technology Infrastructure Subcommittee . c) Provide technical expertise regarding the technology needs of Elgin to the other committees . 11 . In order to complete items five through ten, Chamber volunteers will contribute more than 2 , 400 hours of time, based upon actual hours logged in the years 2000 and 2001 . 12 . Other Economic Development (ED) activities and reports not specified under the above mentioned committees . The Chamber shall : a) ED staff will continue to respond to prospective and existing business inquiries on a daily basis, providing data, information and technical advice regarding business growth and development . Typically, the ED staff responds to 360 such inquiries annually with many requiring follow up. Based on 2001 logs, staff will provide 582 hours of assistance . b) Continue the maintenance of an Elgin employer database. This database provides the information to produce industrial reports, including a manufacturing list, on any of the eight SIC/NAIC sectors . c) Continue the maintenance of the building and sites databases . d) Maintain customized data of the Elgin market not provided in b) and c) to meet the requirements of a) , committee and City requests . Information is maintained on demographics, wage, salary and benefit information, labor information and other data gathering as required. Average time allowance : 150 hours annually. e) Provide technical support to DNA. As required. f) Provide support to City staff, including attendance at Development Review Team meetings . g) Continue to provide monthly and quarterly ED reports to City representatives and semi-annual reports to the City Council . h) To continue to serve small and minority business by maintaining membership on the Fox River Micro Loan Program Board and the Fox River Micro Loan Review Committee. (Monthly commitment of four hours, or 48 hours annually) . i) To maintain an international marketing presence by continuing participation with World Business Chicago. (Quarterly meetings, about 20 hours annually, excluding prospect activity) . j ) Maintain formal relationship with the Kane County Economic Development Advisory Commission and staff . (Formal meetings are quarterly, about 20 hours annually) . This relationship enhances all local economic development efforts . k) Maintain formal relationship with the WIB and seat on the Executive Committee. (Monthly meetings and related committee work fulfills many of the workforce committee requirements) . About 50 hours annually. 1) Maintain formal relationship with the Elgin Employers Council of the Illinois Employment Training Center. (Key workforce and training network) . m) Represent the City at required DCCA functions . (In 2001, these activities ranged from participation on the Five Year Economic Development Strategic Plan to attending prospecting meetings) . n) Provide City quarterly economic data, including new business expansions and building inventory, to DCCA, Kane County and WBC o) Prepare and conduct the annual economic development session of the Elgin Leadership Academy. p) Other duties as circumstances require . 13 . The Chamber shall facilitate the activities and meetings of the Economic Development Council (EDC) . The ED staff shall function consistent with the budget provided attached as Attachment A. 14 . 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, 2002 and January 31 , 2003 , and shall be submitted to the City Manager' s Office, City Hall , 150 Dexter Court, Elgin, IL 60120 . 15 . 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 . 16 . Failure to perform the above services to the satisfaction of the City Council shall result in a termination of this agreement . 17 . 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. 18 . 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, 2002 , 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. 19 . This agreement shall not be construed so as to create a partnership, joint venture, employment or other agency relationship between the parties hereto . 20 . This agreement shall be in full force and in effect from the date of its execution through December 31, 2002 . IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date and year written above . CITY OF ELGIN A municipal corporation BY � )4�.� ' Ed Schock Attest : City Clerk ELGIN AREA CHAMBER CIF COMMERCE A not-for-profit c rporation By Le Nelson President ATTACHMENT A City of Elgin Expenses: Manheim @ 60% $ 63 , 905 Tindle @ 35% 13 , 524 Gajewski @ 10% 5 , 934 Nelson @ 25% 31 , 050 DuCharme @ 5% 1 , 587 Business Recruitment 6, 870 Professional Fees @ 33% 7, 376 Dues related to Economic Development 2 , 728 Office Supplies @ 40% 5, 200 Telephone Expense @ 400 4 , 800 Postage & shipping @ 33% 3 , 795 Rent @ 33% 9, 663 Equipment Lease @ 40% 1, 560 Maintenance (copier, etc . ) @ 50% 2 , 725 Promotional @ 25% 3 , 125 Utilities @ 33% 1, 258 Travel Expense @ 100% (ED staff only) 3 , 900 Meetings and Training @ 50% 3 , 000 GRAND TOTAL: $ 172 , 000 ` �=�. � Agenda Item No. City of Elgin 1"4TEDFO E 'Aft ca. L jila January 18 , 2002 .. ilk �`� TO: Mayor and Members of the City Council ECONOMIC GROWTH 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 2002 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 7 full-time employees . Currently, there are approximately 685 members of the Chamber, including approximately 93 new members added in 2001 . 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 2001 fiscal year, a total of 371 businesses located or expanded in the Elgin area, resulting in addition or retention of 3 , 212 jobs . The Elgin economy continues its strong performance with an average unemployment rate of 6 . 8%, up slightly from 5 . 0% a year ago. As part of the 2002 Budget process, the Elgin Area Chamber of Commerce was granted $172 , 000 from the City to serve as a partner with the City in addressing the community economic development needs . Elgin Area Chamber of Commerce PSA January 18, 2002 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. Continue the efforts of 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 . Business Recruitment. 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 . Technology. The Chamber will complete the merger of the Technology Action Team with the Technology Council and continue the technology infrastructure evaluation indicated in 2001 . Elgin Area Chamber of Commerce PSA January 18 , 2002 Page 3 7 . Other Economic Development Activities . a. Respond to daily information requests . b. Maintain employer data base . c . Maintain building and site data base . d. Technical support for Downtown Neighborhood Association. e . Regularly meet with City of Elgin staff . f . Provide monthly and quarterly reports to City Council . g. Interact with various minority oriented business forums . h. Interact with the Kane County Economic Development Advisory Commissions, World Business Chicago and other economic development groups and agencies . i . Coordinate the activities of the Economic Development Staff . 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. ((/)(111A—PIIIANCIAL IMPACT Annual support funding of $172 , 000 is budgeted in the 2002 Riverboat Fund account number (275-0000-791 . 80-02) . Sufficient monies exist to fund the Purchase of Services Agreement . )JEGAL IMPACT Lone . 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 January 18 , 2002 Page 4 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, J1::) .% ► • �a. Lik•4" Joyce\A. Parker City Manager RHM: sp Attachment