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HomeMy WebLinkAbout98-46 Resolution No. 98-46 RESOLUTION AUTHORIZING EXECUTION OF A SERVICE AGREEMENT WITH THE ELGIN AREA CHAMBER OF COMMERCE FOR ECONOMIC DEVELOPMENT 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 economic development activity for the year 1998, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: February 25, 1998 Adopted: February 25, 1998 Omnibus Vote: Yeas 7 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk SERVICE AGREEMENT THIS AGREEMENT is made and entered into on this day of fir ` , 1998, 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 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 hereby agree as follows: Section 1: EDC Membership The EDC shall consist of 16 members, five of whom are ex-officio. Ex-Officio shall not have the right to vote. Members serve on a calendar year basis. The membership shall be appointed as follows: A. Regular Members: The EDC shall have 11 voting members consisting of: 1) Two members of the City Council as appointed by the Mayor. 2) Two members from non-City Council persons as appointed by the Mayor with the advice and consent of the City Council. 3) Seven members from the business community appointed by the Chamber Board of Directors. B. Ex-Officio Members: The EDC shall have six ex-officio members consisting of: 1) City of Elgin City Manager 2) Chamber President 3) Fox River Water Reclamation District Executive Director 4) Elgin Community College President 5) U-46 School District Superintendent 6) A representative from the healthcare industry The seven voting members appointed by the Chamber will be selected on a broad basis in order to represent a cross representation from the Elgin business community. No one business classification will represent a majority of the business sector members. II C. Membership Term Each term will be for two years with overlapping appointments in voting member classification. The maximum number of terms that can be served by voting members is three consecutive terms, provided, however, that if a member is elected Chair of the EDC that member is eligible to an additional three terms as Chair. D. Staff Representation Ex-officio members may designate a staff person to represent them when they are unable to attend. E. Vacancies Vacancies will be filled by the appointing body who appointed the member creating the vacancy. F. Meeting Attendance Any member not attending at least two-thirds of the regularly scheduled meetings will not be eligible for reappointment. Any member missing three consecutive meetings will be considered to have resigned. Meeting attendance shall not be applied to ex-officio members. Section 2: Frequency of Meetings The EDC shall meet monthly and meet more often if necessary. Section 3; EDC Chair The Chair of the EDC shall be selected annually by the Executive Board of the Chamber from among the voting membership of the EDC. The EDC Chair shall also serve on the Executive Board of the Chamber during his/her tenure. Section 4: EDC Financial Support An annual budget shall be prepared by the EDC and submitted to the City and the Chamber for approval. A budget request for next year shall be submitted to the City and the Chamber no later than September 30 of the current year. Upon approval by both the City and the Chamber, the City shall fund approximately 40 percent of the EDC budget or $95,000 annually. The Chamber and private sector shall fund the remainder of the EDC budget. The ratio may be changed by mutual consent of both parties. The payment of the Citys monetary support will be on a quarterly basis. The EDC and Chamber, on a quarterly basis, will submit a financial report to the City. The financial report will show the income and expenses of the EDC on a line item basis. Section 5: Responsibilities of the EDC The function of the EDC is advisory to the City and the Chamber. A program of work necessary to achieve the purposes of this agreement will be prepared and submitted annually to the City by the EDC and the Chamber. The EDC will monitor the approved plan on a regular basis through its operations. The Chamber will be responsible for the coordination and management of the approved program. On a monthly basis, the Chair of the EDC shall report to the Chamber Board of Directors. On a quarterly basis, the EDC will report to the City. These reports will outline efforts implemented through the program of work and the subsequent results. Section 6: Termination of this Agreement Either the City or the Chamber may terminate this agreement, subject to the implementation adopted by both parties, in writing ninety days prior to the expiration of the current agreement. Section 7: Indemnity The Chamber shall indemnify and hold the City harmless from and against any and all claims for damages, suits, causes of action or any and all liability which may arise out of or in connection with performance of this agreement or other operations as result of any negligent actions by the Chamber. 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 Attest: City Clerk ELGIN AREA CHAMBER OF 0ii I RCE, a not-fo -prorporation BY .04— Larry Narum Chairman of the Board .4 OF Et.Ci 4„1� City of Elgin Agenda Item No. February 5, 1998 TO: Mayor and Members of City Council FROM: Joyce A. Parker, 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 1998 Budget includes $95, 000 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 $15, 000 for completion of a Geographic Information Mapping Computer System (GIS) . Funding for the GIS project 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 800 members, including 150 new members added in 1997 . 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 1996-97 Fiscal Year, direct Chamber assistance was provided to 62 firms that located or expanded in the Elgin area, resulting in 2, 750 jobs . The Elgin economy continues its strong performance with an unemployment rate of 4 . 2 percent, down from 4 . 9 percent a year ago. • Elgin Area Chamber of Commerce PSAs February 5, 1998 Page 2 In addition to the annual support provided for economic development, the Chamber has requested a $15, 000 grant to assist in the completion of the Chamber' s $40, 000 computer system upgrade and GIS system development . The GIS system will enhance the Chamber ' s marketing efforts . The City' s contribution to this project will allow for networking of the system, delivery of economic development information via the Internet and acquisition of equipment allowing for the in-house development of geographic information-based marketing material . Funding for the GIS initiative is included in the 1998 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 the public purpose for City support and provide 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 agreements were drafted in conjunction with the Elgin Area Chamber of Commerce President Don Rinehart . The Chambers 1998 funding request is also attached. /, FINANCIAL IMPACT Annual support funding of $95, 000 is allocated in the 1997 General Fund budget (Account Number 010-1902-709 . 80-02) . Funding for the GIS initiative in an amount not to exceed $15, 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 /, `";.7A) 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 . Elgin Area Chamber of Commerce PSAs February 5, 1998 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 J ce . Parker City Manager Attachments established 1908 Tl in Area eammerce September 11, 1997 The Honorable Kevin Kelly Mayor- City of Elgin 150 Dexter Court Elgin, IL 60120 Dear Mayor Kelly: I am writing you and the members of the Elgin City Council today to request continued funding of the Economic Development Program for 1998. Our Annual Report on Economic Development Activity for FY 1996-97 will be submitted for your review by October 10, 1997. This letter of request is being submitted at this time to comply with early input budget considerations for council and city staff. We are requesting the City-of Elgin invest$94,950 for 1998, a 3% increase over 1997 as budgeted in the City's five year plan. As you know, the balance of our economic development program is funded by a percentage of Chamber dues and additional dollars provided by our members. In addition to this annual request, the Chamber would also ask the Council to consider funding a one-time amount of $15,000 in 1998. As you are aware, the Chamber is in the process of developing and implementing a new Geographic Information Mapping Computer System (G.I.S.)) to enhance our economic development marketing efforts. The additional $15,000 we are requesting will allow us the ability to network this system throughout the chamber office, develop and • deliver economic development information over the internet, and purchase additional printing and graphics equipment for in-house development and delivery of economic development marketing materials. 32 S. Grove Avenue • P.O. Box 648 • Elgin, Illinois 60120 • Phone: (847) 741-5660 • Fax: (847) 741-5677 The Honorable Kevin Kelly September 11, 1997 Page 2 Once this entire system is in place and operating, Elgin's economic development service delivery will be at one of the highest levels available in the state. These services are and will continue to be accessible to the general public and are not limited to Chamber membership. Business prospects worldwide will have Internet access to Elgin's economic development information, including available buildings and sites, and specific demographics. Our site will also be linked to the State Department of Economic Development (D.C.C.A.) internet site, gaining additional marketing visibility for Elgin through their network. 1998 will mark the 12th anniversary of the economic development partnership between the City and Chamber. As you are well aware, your continued leadership and support of these efforts continues to foster the business renaissance in Elgin. Together, we continue to make a difference in generating increased property, sales, and income tax revenues from new and expanding firms. On behalf of the Chamber's Board of Directors, I thank you for your consideration and look forward to our continued partnership. Please contact me if you have any questions or concerns. Sincerely, Don Rinehart President DR/bc cc: Robert Maim Eric Stuckey