HomeMy WebLinkAbout97-48 Resolution No. 97-48
RESOLUTION
AUTHORIZING EXECUTION OF A SERVICE AGREEMENT WITH THE
ELGIN AREA CHAMBER OF COMMERCE FOR FUNDING OF
MARKETING INITIATIVES
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Kevin Kelly, 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 funding in the amount of
$40, 000 for marketing initiatives, a copy of which is attached
hereto and made a part hereof by reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: February 26, 1997
Adopted: February 26 , 1997
Omnibus Vote : Yeas 6 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
SERVICE AGREEMENT
THIS AGREEMENT is made and entered into on this ay of ee , ,
1997, 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, Illinois 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 marketing initiative to promote Elgin as a
desirable location for businesses to build and expand; and
NOW, THEREFORE, in consideration of the mutual promises and covenants contained
herein, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree to
fund the following marketing initiative in total amount not to exceed $40,000:
1. Development of a business recruitment video. Payment for this project shall be made in
amount of$5,000 upon execution of this agreement with the remainder due upon project
completion.
2. Update of the "Building Your Business" demographic profile and related marketing
material. Payment shall be made upon completion of the project unless otherwise mutually
agreed upon by the parties.
3. Development of an interne site and geographical information system designed to
provide businesses with digitally formatted information regarding development sites, maps and
community demographics. Payment shall be made upon completion of the project unless
otherwise mutually agreed upon by the parties.
IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date
and year written above.
CITY OF ELGIN,
a municipal corporation
By
Kevin Kelly
Mayor
ti
Attest:
City Clerk
ELGIN AREA CHAMBER OF COMMERCE,
a not-for-profit corporation
BY 6Lfith 7
Don Rinehart
President
•
`0 OF E�Ci
City of Elgin Agenda Item No.
-kAT L U 0'6
February 5, 1997
TO: Mayor and Members of City Council
FROM: Robert O. Malm, Interim City Manager
SUBJECT: Elgin Area Chamber of Commerce Support
and Purchase of Service Agreements
PURPOSE
The purpose of this memorandum is to provide information to
the Mayor and members of City Council to consider two
Purchase of Service Agreements with the Elgin Area Chamber of
Commerce for economic development activity.
BACKGROUND
The 1997 Budget includes $92 , 185 for support of the Elgin
Area Chamber of Commerce related to economic development
activity. During budget discussions, City Council approved a
one-time grant request of $40, 000 for specific economic
development related projects . Funding for these projects is
available through the Economic Development Initiatives
budgeted in the Riverboat Lease Fund.
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 seven full time and two part time
employees . Currently, there are 745 members including 200
new members added in 1996 .
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 Chambers 1995-96 Fiscal Year, direct Chamber assistance
was provided to 38 firms that located or expanded in the
Elgin area, resulting in 2 ,418 jobs . The Elgin economy
continues its strong performance with an unemployment rate of
4 . 9%, down from 5 . 3% a year ago.
PSA with Elgin Area Chamber of Commerce
February 5 , 1997
Page 2
In addition to the annual support provided for economic
ent the Chamber requested uested $40, 000 of one-time q
funding for three marketing initiatives : production of a
business recruitment video; update of the Building Your
Business demographic profile; and development of an internet
site/geographical information system to provide digitally
formatted information to businesses seeking site information,
maps and demographics . A request from Chamber President Don
Rinehart regarding these projects is attached. Funding for
these three marketing initiatives were included in the 1997
Budget as part of the Economic Development Initiatives in the
Riverboat Lease Fund.
Purchase of Service agreements have been drafted by the Elgin
Area Chamber of Commerce President and City staff for City
Council consideration. The agreements are designed to
establish thepublic purpose for City support and provides a
P P
mechanism for accountability of the Chamber and the Economic
Development Council for the use of public funds .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
The proposed agreements were drafted in conjunction with the
Elgin Area Chamber of Commerce President Don Rinehart .
FINANCIAL IMPACT
Annual support funding of $92 , 185 is allocated in the 1997
General Fund budget (Account Number 010-1902-709 . 80-02 ) .
Funding for the three marketing initiatives in an amount not
to exceed $40, 000 is budgeted in the Riverboat Lease Fund
(Account Number 276-0000-791 . 80-27 - Economic Development
Initiatives ) . Sufficient monies exist to fund these Purchase
of Services Agreements
LEGAL IMPACT
None.
ALTERNATIVES
•
The City Council could approve the agreements as drafted,
edit the agreements or decline to provide support to the
Elgin Area Chamber of Commerce.
PSA with Elgin Area Chamber of Commerce
February 5 , 1997
Page 3
RECOMMENDATION
It is recommended that the City Council approve the Purchase
of Service Agreements with the Elgin Area Chamber of Commerce.
Respectfully submitted,
Eric S . Stuckey
Budget Director/Public
Information Officer
Ro ert 0. Malm
Interim City Manager
Attachments
Elmi
AREA
CHAMBER OF 32 South Grove Avenue, P.O. Box 648
COMMERCE Elgin, Illinois 60121-Area Code (847) 741-5660 Fax (847) 741-5677
February 5, 1997
Robert Maim
Interim City Manager
City of Elgin
150 Dexter Court
Elgin, IL 60120
Dear Mr. Mahn:
Per our recent meeting regarding disbursement of the $40,000 economic development grant to the
Chamber, we would propose to submit expense requests as we incur them for the three projects
covered by the grant funds: Marketing Brochure, Industrial Recruitment Video, and G.I.S. Computer
System. The cost breakout(not to exceed $40,000)for these projects is estimated to be: Brochure
$10,000, Video - $10,000 and Computer System- $20,000.
However, due to the nature of the video industry,we are required to pay approximately one-half the
cost of the video project up front, with the balance due upon delivery of the finished product (see
copy of contract enclosed). We estimate the time frame for completion of the video project to be
sometime in June of 1997.
We expect the completion of the marketing brochure by June or July as well,with the purchase and
installation of the G.I.S. System to occur this summer. We have not, as of yet, entered into contract
with a particular vendor for the G.I.S. System.
Our request, at this time, is for the $5000 required per the enclosed video contract. We will,
subsequently (per our discussion), submit expense requests as we incur them, with proper
documentation, and not to exceed two requests per project, for the balance of the other projects.
We are pleased to be able to expand and strengthen our partnership with the City of Elgin through
these efforts and look forward to a prosperous year in economic development.
Please call me at 741-5942 if you have any questions regarding this request.
Sincerely,
Don Rinehart
President
DR:bc
Enclosure
Elgin Area Chamber of Commerce
Draft
Economic Development 1997 Budget
INCOME 1997 1996
Membership Dues 96,052 93,254
Economic Development 140,080 136,000
INCOME $236,132 $229,254
EXPENSE
Dues/Subscriptions 2,149 2,086
Insurance/Retirement 22,619 21,960
Meetings 4,561 4,428
Office Equipment 5,191 5,040
Office Supplies 6,489 , 6,300
Postage 4,790 4,650
Professional Fees 2,040 1,980
Program Activities 3,512 3,410
Rent 10,043 9,750
Salaries 150,975 146,580
Telephone 4,532 4,400
Travel 6,098 5,920
Utilities 1,288 1,250
Payroll Taxes 11,845 11,500
EXPENSE $236,132 $229,254