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HomeMy WebLinkAbout04-46 • . r Resolution No. 04-46 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE OF 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 Purchase of 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 25, 2004 Adopted: February 25, 2004 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk SERVICE AGREEMENT THIS AGREEMENT is made and entered into this 5<< of 9 2004, 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 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 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" ) . 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$130,720 to be made in four equal payments. The first payment will be made within Thirty(30) days of the execution of this agreement. The second payment shall be made by April 1,2004. The third payment shall be made by July 1, 2004. The fourth payment shall be made by October 1, 2004. 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$130,720 contribution to operating expenses such as staff salary and benefits, rent, meeting expenses, and expenses associated with sponsorship of community events. A line item budget is attached hereto and incorporated herein as Attachment A. 4. The City of Elgin will commit $76,000 in additional funding for the Enhancing Elgin Marketing Program, matching $38,000 in Chamber and private contributions. 5. The Chamber shall follow its Years 2000-2004 prioritized five-year strategy focusing on five priorities: Workforce Development,Business Retention&Expansion,Enhancing the Elgin Area, Business Recruitment and Transportation &Development. - 1 - • 6. Workforce Development Initiatives proposed for Year 2004. The Chamber shall: a) Continue as an active participant of the River Valley Investment Development Board (hereinafter referred to as the "Workforce Investment Board (WIB)"), the primary workforce agency oversight of the State of Illinois. g b) Continue collecting labor market information;wage,benefit and salary data;and other pertinent data from existing sources. • c) Coordinate Workforce Development Issues on Elgin's behalf with county, state and federal workforce agencies. d) In coordination with the WIB Marketing Committee,further enhance the marketing of the Elgin Area workforce and training partners for the purpose of creating a true"One- Stop"partnership; providing coordinated services to employers. e) Continue to facilitate the workforce and training requests made by new and existing Elgin employers. f) Use the Workforce Development Committee,established in 2000,to assist in items a) through e). 7. Business Retention&Expansion Initiatives proposed for Year 2004. The Chamber shall: a) Visit a minimum of 30 specific businesses and industries where retention efforts will likely be most productive. b) Conduct no less than three round tables with Elgin employers,to be coordinated with the City. c) Prepare an annual report for 2003 to the City of Elgin in the first quarter of 2004. 8. Enhancing Elgin Initiatives proposed for Year 2004. The Chamber shall: a) Raise $38,000, matching the City's commitment of$76,000. (See Item 4 above.) b) Provide additional staff support, as necessary, to steer the process. c) Complete the third year of the Enhancing Elgin Campaign. A proposed Project Schedule for the Enhancing Elgin Campaign is attached hereto as Exhibit B. The tasks for the third year of the Enhancing Elgin Campaign shall consist of those tasks in Exhibit B listed in the Months of January 2004 through December 2004. The Chamber shall provide the City a written report regarding the completion of the Enhancing Elgin Campaign on or before January 31, 2005. The Chamber shall also make a presentation to the City Council regarding the Enhancing Elgin Campaign at a time as requested by the City.For the services related to third year of the Enhancing Elgin Campaign the Cityshallpayto the Chamber the lumpsum of$76,000 for all g p gn - 2 - fees, costs and expenses related thereto. Such payment shall be made by the City to the Chamber within thirty(30) days of the execution of this agreement. 9. For the Year 2004, The Transportation&Development Committee of the Chamber shall: a) Budget$1,500 for the committee. b) Develop, in conjunction with City staff, a program of work for 2004. 10. Business Recruitment Initiatives proposed for Year 2004. The Chamber shall: a) Attend two trade shows in partnership with Kane County Economic Development: International Council of Shopping Centers (ICSC), Association of Industrial Real Estate Brokers (AIRE). b) Continue to write and distribute quarterly press releases highlighting Elgin. c) With the Business Recruitment Committee,identify available retail,commercial and industrial properties not currently on the market. d) The Business Recruitment Committee, coordinating through the city manager, develop a retail attraction program to complement the existing commercial/industrial attraction efforts. 11. In order to complete items six through ten, Chamber volunteers will contribute more than 2,000 hours of time, based upon actual hours logged in the years 2002 and 2003. 12. Other Economic Development (ED) activities and reports not specified under the above mentioned committees. The Chamber shall: a) Continue to collaborate with the City to develop a strategy for attracting desirable retail businesses to the Randall Road Corridor. This includes, but not limited to, reviewing current marketing data,actively marketing the Randall Corridor to various corporate retail representatives. b) 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,300 such inquiries are made annually with many requiring follow up. c) 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. d) Maintain the building and sites databases for Chamber members and Challenge 21 investors. Continue distributing building and site information for other Elgin properties through a license agreement with Loopnet.com. e) Maintain customized data of the Elgin market not provided above to address prospect requests. Information is maintained on demographics, wage, salary and benefit - 3 - information, labor information and other data gathering as required. f) Provide technical support to DNA, as requested by Ray Moller, City Economic Development Director. g) Provide additional support to the City staff, including attendance at Development Review Team meetings. h) Continue to provide monthly and quarterly ED reports to City representatives and an annual report to the City Council. i) Maintain formal relationship with the Kane County Economic Development Advisory Commission and staff. j) 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). k) Represent the City at required DCEO functions. (In 2003, these activities ranged from participating in The Governor's Regional Economic Development Planning Meeting to attending prospecting meetings). 1) Prepare and conduct the annual economic development session of the Elgin Leadership Academy. m) Other duties as circumstances require. 13 The Chamber shall facilitate the activities and meetings of the Economic Development Council (EDC) and the Economic Development Advisory Council (EDAC). 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$206,720. These reports shall be provided to the City Council by July 31, 2004 and January 31, 2004, 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 $206,720, 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,judgments,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. The provision of this paragraph shall survive any expiration and or termination of this agreement - 4 - • 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, 2004, 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. The terms of this agreement shall be severable.In the event any of the terms or provisions of this agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect. 21. 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 arising out of or in connection with this agreement shall be in the Circuit Court of Kane County, Illinois. 22. This agreement represents the entirety of the agreement between the parties hereto.There are no other oral or implied agreements between the parties hereto. No amendments to this agreement shall be effective unless made in writing between the parties hereto. 23. This agreement shall be in full force and in effect from the date of its execution through December 31, 2004. 24. The City Shall be recognized as a sponsor of Chamber and shall receive the benefits of sponsorship consistent with the level of support provided. At a minimum,the City's support shall be acknowledged in the Chamber's Annual Report and Web page information. Samples of this acknowledgement shall be provided to the City for its prior approval. • - 5 - • 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 S chock � Attest: Pit' At_a_.% City Clerk Zil 4,,,,,tttrAirek, Cip.u.t6- 0.6exi. LGIN ARE ER OF COMMERCE A no forprofit corporation V B Leo Nelson President 6 - ATTACHMENT A - 7 - '1/23/2004 3:45 PM Elgin Area Chamber of Commerce Page 1 2004 Economic Development Budget co 4 012 1 Economic Development Ordinary Income Economic Development Income City of Elgin 131,000 Challenge 21 Supplement 73,000 Other Contract Services 10,000 Total ED Ordinary income 214,000 Economic Deva(Qamsnt Ordlnagt..Eict%.nstt .. � ^.i Administrative Services 250,810 Professional Fees 1,980 Dues/Subscriptions/Memberships 3,063 Office Supplies 3,600 Telephone Expense 2,850 `'ED Marketing 2,000 Postage&Shipping 3,000 Rent 6,000 Equipment Lease AKA Equipment Rental 605 Maintenance 1,500 Promotional 1,500 Travel Expense 6,360 Meetings and Training 1,750 Banking Fees 600 Total Economic Development Expense 285,618 Net ED Ordinary Income (71,618) Economic Development Challenge income 2004 Pledges 140,000 Interest Income 1,600 Ehancing Elgin City of Elgin 76,000 Chamber 5,000 Private 22,500 Total ED Ordinary Income 245,100 Economic Development Challenge 21 Expenses;_ Administrative Expense 96,800 Committee Support 109,500 Interest on Note 3,700 Marketing 4,000 Professional Development 3,030 Website Development 3,000 • Total Challenge 21 Expense 220,030 Net Challenge21 Income 25,070 Net Economic Development and Challenge 21 (46,548) _ i ATTACHMENT B Enhancing Elgin Campaign Media Plan for 2004 - 8 - • PSA/Elgin Area Chamber of Commerce February 6, 2003 Page 2 Elgin Marketing Project. An additional $38,000 will be secured for the Image Enhancement project from both Chamber and private resources. The Chamber of Commerce, working with 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. Enhancing Elgin Continue implementation of the Enhancing Elgin Marketing Program. Its 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. Transportation and Development Examine new development areas within the eastern and western boundaries of the city. The role of the committee is to work with both the city and county to project commercial and industrial growth areas so that transportation and other infrastructure issues can be addressed. 5. Business Recruitment Continue working 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 turn over, the Chamber will work with property owners and the City to develop options for re-use or redevelopment of the site. 6. 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. PSA/Elgin Area Chamber of Commerce February 6, 2003 Page 3 E. Regularly meet with City of Elgin staff. F. Provide monthly and quarterly reports to City Council. G. Interact with the Kane County Economic Development Advisory Commissions, World Business Chicago, and other economic development groups and agencies. H. 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 proves 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. 91kFINANCIAL IMPACT The cost of the agreement with the Chamber will total $206,720. There are sufficient funds budgeted and available ($206,720) in the Riverboat Fund, Contributions, account number 275-0000-791.80-02 to fund this agreement. giaLreiL IMPACT None. ALTERNATIVES 1. The City Council can approve the agreement as drafted. 2. The City Council can decline to provide support to the Elgin Area Chamber of Commerce. Respectfully submitted for Council consideration RHM/dr Attachment OFF( \^^ Agenda Item No. \ City of Elgin o*i TE D 03 L A • G _ . February 6, 2004 `� ) TO: Mayor and Members of the City Council ECONOMIC GROWTH FROM: David M. Dorgan, City Manager Raymond H. Moller, Director of Economic Development SUBJECT: Purchase of Service Agreement with Elgin Area Chamber of Commerce PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider a Purchase of Service Agreement with the Elgin Area Chamber of Commerce for economic development activity. RECOMMENDATION It is recommended that the City Council approve the Purchase of Service Agreement in the amount of $206,720 with the Elgin Area Chamber of Commerce to provide economic development services. BACKGROUND 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 678 members of the Chamber including approximately 2 new members added in 2003. The adopted 2004 budget for the Elgin Area Chamber of Commerce is $906,200. 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 vital partner in local economic growth through efforts to retain and expand existing businesses and attract new businesses to the area. During the 2003 fiscal year, a total of 398 businesses located or expanded in the Elgin area, resulting in the addition or retention of 1,834 jobs. The average unemployment rate for Elgin in 2003 was 9.2%, up from 8.6% a year ago. Within the 2004 budget, $130,720 was earmarked for the Elgin Area Chamber of Commerce to serve as a partner with the City in addressing Elgin's economic development needs. In addition to funding projects for economic development, $76,000 is budgeted in 2004 for the Enhancing E g 0 r,,=, ii 0 G ` '''''"—g,, February 6, 2004 - itsr N TO: Mayor and Members of the City Council ECONOMIC GROWTH FROM: David M. Dorgan, City Manager Raymond H. Moller, Director of Economic Development SUBJECT: Purchase of Service Agreement with Elgin Area Chamber of Commerce PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider a Purchase of Service Agreement with the Elgin Area Chamber of Commerce for economic development activity. RECOMMENDATION It is recommended that the City Council approve the Purchase of Service Agreement in the amount of $206,720 with the Elgin Area Chamber of Commerce to provide economic development services. BACKGROUND 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 678 members of the Chamber including approximately 2 new members added in 2003. The adopted 2004 budget for the Elgin Area Chamber of Commerce is $906,200. 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 vital partner in local economic growth through efforts to retain and expand existing businesses and attract new businesses to the area. During the 2003 fiscal year, a total of 398 businesses located or expanded in the Elgin area, resulting in the addition or retention of 1,834 jobs. The average unemployment rate for Elgin in 2003 was 9.2%, up from 8.6% a year ago. Within the 2004 budget, $130,720 was earmarked for the Elgin Area Chamber of Commerce to serve as a partner with the City in addressing Elgin's economic development needs. In addition to funding projects for economic development, $76,000 is budgeted in 2004 for the Enhancing PSA/Elgin Area Chamber of Commerce February 6, 2003 Page 2 Elgin Marketing Project. An additional $38,000 will be secured for the Image Enhancement project from both Chamber and private resources. The Chamber of Commerce, working with 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. Enhancing Elgin Continue implementation of the Enhancing Elgin Marketing Program. Its 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. Transportation and Development Examine new development areas within the eastern and western boundaries of the city. The role of the committee is to work with both the city and county to project commercial and industrial growth areas so that transportation and other infrastructure issues can be addressed. 5. Business Recruitment Continue working 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 turn over, the Chamber will work with property owners and the City to develop options for re-use or redevelopment of the site. 6. 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. PSA/Elgin Area Chamber of Commerce February 6, 2003 Page 3 E. Regularly meet with City of Elgin staff. F. Provide monthly and quarterly reports to City Council. G. Interact with the Kane County Economic Development Advisory Commissions, World Business Chicago, and other economic development groups and agencies. H. 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 proves 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 The cost of the agreement with the Chamber will total $206,720. There are sufficient funds budgeted and available ($206,720) in the Riverboat Fund, Contributions, account number 275-0000-791.80-02 to fund this agreement. LEGAL IMPACT None. ALTERNATIVES 1. The City Council can approve the agreement as drafted. 2. The City Council can decline to provide support to the Elgin Area Chamber of Commerce. Respectfully submitted for Council consideration RHM/dr Attachment