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HomeMy WebLinkAbout05-87 Resolution No. 05-87 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH THE DOWNTOWN NEIGHBORHOOD ASSOCIATION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Dolonna Mecum,City Clerk,be and are hereby authorized and directed to execute a Purchase of Service Agreement on behalf of the Cityof Elgin with the �' g Downtown Neighborhood Association for downtown revitalization, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: March 23, 2005 Adopted: March 23, 2005 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk PURCHASE OF SERVICE AGREEMENT THIS AGREEMENT is made and entered into this 2$R p day of , 2005, 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 its center city; and WHEREAS, the DNA is formed to create, support, and sustain revitalization efforts in downtown Elgin; and 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 Forty Five Thousand and Six Hundred Dollars ($45 , 600) to be made in two equal payments of Twenty Two Thousand Eight Hundred Dollars ($22 , 800) . The first aforementioned payment shall be made within thirty (30) days of the date of this Agreement . The second payment shall be made July 30, 2005 . However, that the second payment shall not be made prior to eight (8) days after the DNA' s submission of all required reports and financial statements which are due July 15, 2005, as provided for in this agreement . 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 downtown (hereafter referred to as "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 $45, 600 provided for herein soley to operating expenses such as staff salary and benefits, rent , meeting expenses, and expenses associated with the fulfillment of duties related to this contract . 5 . DNA shall develop strategic planning that enhances the appearance and promotes the preservation of downtown through the following means : A. Forums B. Design Assistance and Facade Programs C. Strategic Planning 6 . DNA shall implement and/or assist in multiple community events to be held in the Center City including but not limited to the 4th of July Parade, Harvest Market, Fiesta Salsa, Window Wonderland, downtown carnivals and or any downtown bicycle race approved by the City. 7 . The City shall be recognized as a sponsor of the DNA and shall receive the benefits of sponsorship consistent with the level of support provided. At minimum, the City' s support shall be acknowledged in print materials promoting the organization or event, radio advertising, Web page information and event program (s) . Three samples of this acknowledgement shall be provided to the City. A logo provided by the City shall be used for this purpose . 8 . Representatives of DNA shall meet not less than quarterly with representatives of the Elgin Area Chamber of Commerce and City of Elgin and include the City of Elgin in committees and subcommittees related to economic development . 9 . DNA shall assist with the implementation of a strategy designed to strengthen existing downtown businesses, recruit new businesses and develop strategies designed to sustain the economic vitality of the downtown. 10 . The DNA office shall also serve as a Discovery Studio for the implementation of the City of Elgin Riverfront Center City Master Plan, dedicating space for the display of plans and drawings, printed hand-outs and other related materials . 11 . DNA will administer the local Main Street Program, representing Elgin before both the Illinois and National Main Street agencies . • 12 . DNA shall provide a budget which shall reflect the projected distribution of funds received from the City during the term of this Agreement . The budget shall be submitted within 30 days of execution of the Agreement . 13 . DNA shall provide the City two written reports detailing the disbursement of the aforementioned $45, 600 . These reports shall be provided to the City on or before July 15 , 2005, and January 15 , 2006, and shall include a report of all programs funded by the city. These reports shall be submitted to the City Manager' s Office, City Hall, 150 Dexter Court, Elgin, IL, 60120 . 14 . DNA shall have audits performed on its financial statements for the years ended December 31, 2004 and December 31 , 2005 . The audit must be performed by an independent Certified Public Accountant recognized in good standing by the American Institute of Certified Public Accountants and licensed in the State of Illinois . DNA shall provide the City with said audited financial statements relative to the organization' s total operations on or before July 15 , 2005 for the 12/31/2004 audit and July 15 , 2006 for the 12/31/2005 audit . These statements 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 to the $45, 600 , given 72 hour notice, and at a time agreed upon by both parties . 16 . 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, judgments, 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. The provisions of this paragraph shall survive any termination and/or expiration of this Agreement . 17 . 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 $45, 600 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 . DNA acknowledges and agrees that such liquidated damages are reasonably related to City ' s actual damages in the event of such breach, and shall not be construed as being punitive in nature . 18 . 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 , 2005 , DNA shall refund to the City on a prorated per deim 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. 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 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 . 21 . 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 . 22 . This Agreement shall be in full force and in effect from the date of its execution through December 31 , 2005 . IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year written above . CITY OF ELGIN a municipal corporation By: 411116 Attest : tar` .u�.--- Loni Mecum City M.. ager City Clerk Downtown Neighborhood Association of Elgin, a not-for-profit corporation By: ,47— Steve Munson President 1° • L 4-- -'' Agenda Item No. City of Elgin if 1 v1 b�'TE D 10' E of r i ii L G t R t X :jll March 4, 2005 i 5,°1#° ;; N tom , TO: Mayor and Members of the City Council ALIVE DOWNTOWN FROM: Olufemi Folarin, City Manager Cherie Murphy,Economic Dev opment Coordinator SUBJECT: Downtown Neighborhood Association Purchase of Service Agreement for 2005 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 2005. RECOMMENDATION It is recommended that the City Council approve the Purchase of Service Agreement with the Downtown Neighborhood Association in the amount of$45,600. BACKGROUND The DNA is a grass-roots, membership-based organization formed to create, support, and sustain p revitalization efforts in downtown Elgin. Members include downtown businesses, civic and social service organizations, property owners, residents, surrounding neighborhoods, 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)profit organizationnot-for- in April, 1998. DNA has been instrumental in promoting the revitalization of Downtown Elgin and worked to make Elgin the first Large-Cities Main Street Community in Illinois,as well as receiving National Main Street status in 2004. As part of the 2005 budget process, the DNA requested and was granted $45,600 from the City. Funds are to be used for operating expenses such as staff salary and benefits, rent, meeting expenses, and expenses associated with sponsorship of community events. DNA proposed that this funding be utilized to support the following programs: • Main Street Program- DNA shall coordinate and administer the Main Street Illinois and Main Street USA program for the downtown area for the City of Elgin. DNA Purchase of Service Agreement February 6, 2005 Page 2 • Downtown appearance and preservation - DNA shall develop strategic planning that enhances the appearance and promotes the preservation of downtown through forums, design assistance and facade programs, and other strategic planning. • Downtown business retention and expansion - DNA shall assist with implementation of a strategy designed to strengthen downtown businesses, recruit new businesses, and develop strategies to sustain the economic vitality of the downtown. • 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, Four Bridges of Elgin International Bike Race Welcome Dinner (or any comparable bicycle race event approved by the City), Fiesta Salsa, and Window Wonderland. • • Support implementation of Riverfront Center City Master Plan - DNA shall serve as a Discovery Studio for implementation of the City of Elgin Riverfront Center City Master Plan. • Coordinate efforts with other relevant organizations - The DNA will be active with the Chamber of Commerce, the E-Elgin Technology Action Team, Neighborhood Council, City of Elgin staff, and others. Minor changes have been made to the Purchase of Service Agreement from previous years. The most important change will be to the financial reporting requirements. Past agreements have required financial statements be provided to the City. This year's agreement will require audited financial statements. DNA is aware of this change and is making arrangement to hire an auditing firm. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. FINANCIAL IMPACT The cost of the agreement with the DNA will total $45,600. There are sufficient funds, $59,280, budgeted and available in the 2005 Riverboat Fund Budget, Contributions, Downtown Neighborhood Association, account number 275-0000-791.80-36, to provide the requested support to the Downtown Neighborhood Association. The remaining dollars ($13,680) are budgeted for specific July 4th expenses. r DNA Purchase of Service Agreement February 6, 2005 Page 3 L GAL 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. Respectfully submitted for Council consideration. /RHM Attachments