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HomeMy WebLinkAbout99-94 • Resolution No. 99-94 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 Kevin Kelly, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an agreement on behalf of the City of Elgin with the Elgin Area Chamber of Commerce for economic development activities, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: March 24 , 1999 Adopted: March 24 , 1999 Omnibus Vote: Yeas 5 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk • • SERVICE AGREEMENT THIS AGREEMENT is made and entered into on this / ,';day of 4 /9/<.', t'L , 1999, 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: 1. The City shall pay to Chamber the sum of$172,000 to be made in three equal payments. The first payment will be made following the execution of this agreement. The second payment shall be made by June 1, 1999. The third payment shall be made by September 1, 1999. 2. Chamber shall address all inquiries and requests made pursuant to this agreement to City's Business Services Director. 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. 4. The Chamber will develop a prioritized strategy focusing on specific businesses and industries where retention efforts will likely be most productive. 5. The Chamber will continue to work with prospective new businesses that are interested in relocating to Elgin. The Chamber will be the lead agency in promoting and marketing Elgin in the development community. 6. As business locations within Elgin turnover, the Chamber will work with the property owner and the City to develop alternatives for redevelopment of the site. • 7. The Chamber will conduct an analysis of labor pools in order to target industry segments for active recruitment. As a market identification document, this analysis will help target economic development marketing efforts. 8. An updated directory of area manufactures and distributors will be prepared by the Chamber including industrial classification, e-mail address and other useful information. 9. The Chamber will maintain a current inventory of development and redevelopment sites on the computer-based geographical information system (GIS). 10. The Chamber will update the current booth and attend at least one commercial and one industrial trade show during 1999. 11. The Chamber will organize at least two tours during 1999 to familiarize brokers with Elgin development areas, general contractors, banks/lending institutions, and other community resources. 12. The Chamber will develop various marketing material that promotes Elgin to developers. 13. Representatives of the Chamber shall meet not less than quarterly with representatives of the New Century Partnership for Elgin and the Downtown Neighborhood Association of Elgin. A format for these meetings shall be established by March 31, 1999 with quarterly meetings beginning thereafter. The Chamber will serve as the facilitator of these meetings. 14. The Chamber will assist the Downtown Neighborhood Association in conducting a market analysis of the Central Business District identifying business development opportunities within the area. From this analysis, recruitment efforts will be directed towards businesses that match the opportunities identified in downtown. 15. Working with the other downtown organizations and downtown business owners, the Chamber will work to provide assistance to downtown business owners. 16. The Chamber will work in conjunction with the Suburban Minority Business Council (SMBC) to develop specialized assistance to Elgin's minority business owners. 17. The Chamber shall facilitate the activities and meetings of the EDC. The EDC shall function consistent with the description provided attached as Exhibit A. 18. The Chamber shall provide a written report detailing the disbursement of $170,000. This report shall be provided to the City Council by January 1, 2000 and shall include program activity. 19. Quarterly activity reports summarizing services provided shall be provided to the City Council. • 20. The City shall have the right to review all accounting records related to the use of the $170,000, given 72 hour notice, and at a time agreed upon by both parties. 21. The Chamber shall indemnify and hold City harmless from and against any and all claims for damages, suits, causes of action or any and all other liability which may arise out of or in connection with the performance of this agreement or other operations as result of any negligent actions by the Chamber. 22. This agreement shall not be construed so as to create a partnership,joint venture, employment or other agency relationship between the parties hereto. 23. This Agreement shall be in full force and in effect from the date of its execution through December 31, 1999. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date and year written above. CITY OF ELGIN, a municipal corporation B y Kevin Kelly Mayor Attest: 1!--.141-421".4%.< City Clerk ELGIN AREA CHAMBER OF COMMERCE, a not-for-pr9.fit corporation (1.' BY j` Z Robert H. Carlile President (- '/ rj • Exhibit A - EDC Structure 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 five 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 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. 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: 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. . . . .(OF EE• 4 Ci .4 Agenda Item No. , City of Elgin g II\ o�n?ATEl)%'' March 1, 1999 TO: Mayor and Members of the City Council 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 1999 Budget includes a total of $172, 000 for support of the Elgin Area Chamber of Commerce related to economic devel- opment activity. This support includes a base of $98, 000 for funding of economic development initiatives plus an additional $74 , 000 of support requested and granted as a part of the 1999 Budget . 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 . Cur- rently, there are approximately 770 members of the Chamber, including approximately 150 new members added in 1998 . The City provides direct financial support for economic development activities of the Chamber. The economic develop- ment 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 1998 fiscal year, a total of 98 businesses located or expanded in the Elgin area, resulting in addition or retention of 2, 534 jobs . Direct Chamber assistance was to 62 of the new or expanding firms . The Elgin economy continues its strong performance with an unemployment rate of 3 . 7%, down from 4 . 2% a year ago. Elgin Area Chamber of Commerce PSA March 1, 1999 Page 2 As part of the 1999 Budget process, the Elgin Area Chamber of Commerce was granted $172, 000 from the City to serve as the community' s lead economic development agency. The Chamber of Commerce, working with the City staff, proposes that this funding be utilized to support the following programs : - Continued business retention and expansion efforts . The Chamber will develop a prioritized strategy focusing on specific businesses and industries where retention efforts will likely be most productive . - Continued efforts to attract new businesses to the area. The Chamber will continue to work with prospective new businesses that are interested in relocating to Elgin. The Chamber will be the lead agency in promoting and marketing Elgin in the development community. - Assist with redevelopment opportunities . As business locations within Elgin turn over, the Chamber will work with the property owner and the City to develop alterna- tives for redevelopment of the site . - Research Report/Industrial Analysis . The Chamber will conduct an analysis of labor pools in order to target industry segments for active recruitment . As a market identification document, this analysis will help target economic development marketing efforts. - Business Manufacturers and Distributors Directory. An updated directory of area manufacturers and distributors will be prepared, including industrial classification, e-mail address and other useful information. - Update GIS information. The Chamber will maintain a current inventory of development and redevelopment sites on the computer-based geographical information system (GIS) . - Trade show presence. The Chamber will update the current booth and attend at least one commercial and one indus- trial trade show during 1999 . - Conduct Broker tours . The Chamber will organize at least two tours during 1999 to familiarize brokers with Elgin development areas, general contractors, banks/lending institutions and other community resources . - Develop and update marketing material . The Chamber will develop various marketing material that promotes Elgin to developers . Elgin Area Chamber of Commerce PSA March 1, 1999 Page 3 - Coordinating efforts with other downtown organizations . The Chamber of Commerce will meet at least quarterly with the New Century Partnership and Downtown Neighborhood Association representatives to foster communication and coordination of efforts . Due to their staff and facili- ties, the Chamber will serve as the facilitator of these coordinating efforts. - Downtown market analysis . The Chamber will conduct a market analysis of the Central Business District identi- fying business development opportunities within the area. From this analysis, recruitment efforts will be directed towards businesses that match the opportunities identi- fied in downtown. - Downtown business assistance. Working with the other downtown groups and downtown business owners, the Chamber will work to provide assistance to downtown business owners . - Minority business owner assistance. The Chamber will work in conjunction with the Suburban Minority Business Council (SMBC) to develop specialized assistance to Elgin' s minority business owners . 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 . �A_FINANCIAL IMPACT ! , Annual support funding of $98, 000 is allocated in the 1999 General Fund budget (account number 010-0902-709 . 80-02) . Funding for additional support in 1999 of $74 , 000 is budgeted in the Riverboat Fund (account number 275-0000-791 . 80-02) . Sufficient monies exist to fund the Purchase of Services Agreement . U ✓ LEGAL IMPACT None . J • r ' Elgin Area Chamber of Commerce PSA March 1, 1999 Page 4 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 . RECOMMENDATION It is recommended that the City Council approve the Purchase of Service Agreement with the Elgin Area Chamber of Commerce to provide economic development services . Re ectfully submit d, Ja ce A. Parker City Manager ES