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HomeMy WebLinkAboutReso 93-225 - Approve funding agreement between the COR & the Economic Dev Corp for Industrial Promotion in the Redding area during FY 1993-94RESOLUTION q.3 —225 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE FUNDING AGREEMENT BETWEEN THE CITY OF REDDING AND THE ECONOMIC DEVELOPMENT CORPORATION FOR INDUSTRIAL PROMOTION IN THE REDDING AREA DURING FISCAL YEAR 1993-94, AND AUTHORIZING THE MAYOR TO SIGN SAME IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows: 1. The City Council of the City of Redding hereby approves the Funding Agreement between the City of Redding and the Economic Development Corporation for industrial promotion in the Redding area during fiscal year 1993-94, a true copy of which is attached hereto and incorporated herein. 2. That the Mayor of the City of Redding is hereby authorized and directed to sign said Agreement on behalf of the City of Redding, following approval by the Economic Development Corporation Board of Directors, and the City Clerk is hereby authorized and directed to attest the signature of the Mayor and to impress the official seal of the City of Redding. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 15th day of June , 1993, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Anderson, Dahl, Kehoe, MosA and Arness NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None l ABSTAIN: COUNCIL MEMBERS: None CARL ARNESS, Mayor City of Redding ATTEST: FORM APPROVED: Ct5KNIE STIZO-AgAYER,lerk RANDALL . HAYS, City Attorney U 9 FUNDING AGREEMENT 0 THIS AGREEMENT, made and entered into this day of 11 1993, by and between the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "City," and the ECONOMIC DEVELOPMENT CORPORATION, a non-profit corporation duly organized and existing under and by virtue of the laws of the State of California, hereinafter referred to as "EDC": W I T N E S S E T H: WHEREAS, the City Council of the City of Redding is empowered by the State of California to appropriate and expend money from City funds for industrial promotion in the Redding area; and WHEREAS, City has no organized means of its own for conducting the systematic expenditure of such funds so that City may receive the utmost benefit therefrom; and WHEREAS, the EDC is particularly well equipped to administer a program for industrial promotion of the City, including administration and marketing activities associated with the Shasta Metro Enterprise Zone; and WHEREAS, the proposed Marketing Program by the EDC is an extension of the EDC's business recruitment project which began in 1980, together with effectuation of the Enterprise Zone, and will be a continuation and re -emphasis of the commitment by the City of Redding and Shasta County to promote the area for new business growth; and WHEREAS, this cooperative effort of the EDC and the City of Redding will provide a productive and coordinated program for job creation, business development, and Enterprise Zone administration; NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED by and between the parties hereto as follows: 1. The EDC does hereby agree during the term hereof to perform the task of industrial promotion and Enterprise Zone administration as outlined in the scope of services attached hereto and incorporated herein by reference. 2. To partially offset the EDC's costs incurred in providing and maintaining said industrial promotion and Enterprise Zone administration, the City agrees to pay the EDC for said services, as 1 outlined in the Scope of Services and Budget Summary attached hereto, and during the fiscal year 1993-94 the sum of Eighty Thousand Dollars ($80,000.00) total reimbursement upon submission of invoices to the City's Director of Finance. 3. The EDC covenants and agrees to submit a summary statement of its income and expenditures in the performance of its contractual responsibilities herein to the City's Director of Finance at monthly intervals during the fiscal year 1993-94, and at the end of each fiscal year; and further agrees to keep a full and complete account of its use of all funds received from City and agrees to make such account available to City at any and all reasonable times, upon request. 4. The EDC does hereby agree to hold the City of Redding, its officers, agents, and employees, harmless from any and all actions, causes of action, claims, demands, damages, costs, loss of services, expenses, and compensation, on account of or in any way arising out of City's expenditure of said funds to the EDC for industrial promotion outlined above. 5. The term of this Agreement shall be for a period of one (1) year commencing on July 1, 1993, and terminating June 30, 1994. 6. No member of the City Council or of any Board, and no officer or employee of City shall be or become, directly or indirectly, financially interested in this Agreement or in the work or business to be performed by the EDC as provided herein. 7. In providing its services, EDC will act as an independent contractor, and no officer or employee of EDC will be deemed an officer or employee of City for any purpose. 8. This Agreement is granted upon the express condition that City shall be free from any and all liability and claims for damages for personal injury, death, or property damage in any way connected with EDC's services to be performed hereunder, including claims of EDC, its officers, agents, employees, and members. EDC shall indemnify and save harmless City, its officers, agents, and employees, from any and all liability, loss, cost, or obligation on account of or arising out of any such injury, death, or loss caused by the negligence or other legal fault of EDC or its officers, agents, employees and members. 2 9. It is understood and agreed as a condition of this Agreement that EDC shall, at its own expense and at all times during the term of this Agreement, obtain from a company authorized to do business in the State of California and keep in full force and effect public liability insurance in the minimum amounts of $300,000 for injury or death to any person and $500,000 for injury or death of more than one person in the same accident, and public liability insurance for property damage in the minimum amount of $50,000.00; OR, in the alternative, a combined single -limits policy in an amount of not less than $500,000.00. Said policy shall name City, its officers, agents, and employees, as additional insured, and shall further contain a provision obligating the insurance carrier to notify City in writing at least ten (10) days prior to any cancellation or reduction of such insurance. A Certification of Insurance evidencing such coverage and notice requirement shall be approved by the Risk Manager of City and filed with him prior to the commencement of this Agreement. 10. It is further understood and agreed as a condition of this Agreement that EDC will provide workers' compensation insurance on its employees, and furnish the Risk Manager of City with a Certificate evidencing such insurance, to be approved by him, prior to the commencement of this Agreement. Said Certificate shall contain a provision obligating the insurance carrier to notify City in writing at least ten (10) days prior to any cancellation or reduction of such insurance. To obtain an exemption from this requirement should EDC have no employees, EDC shall provide the Risk Manager of City with a letter stating that it is not employing any person or persons in any manner so as to become subject to the workers' compensation laws of California provided, however, that should EDC later become subject to the workers' compensation provision of the Labor Code, it will forthwith comply with the insurance requirements set forth above. 11. In the event EDC violates the provisions of this Agreement for any reason other than the occurrence of circumstances over which it can exercise no effective control, and such violation shall not be cured or remedied within sixty (60) days after notice thereof by City, in addition to any other remedies provided for in the Agreement, City 3 shall have the right to terminate this Agreement by written notice duly served upon EDC. 12. It has been determined that this matter is not subject to the provisions of the California Environmental Quality Act. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. ATTEST: CONNIE STROHMAYER, City Clerk FORM APPROVED: RANDALL A. HAYS, City Attorney 4 CITY OF REDDING BY: CARL ARNESS, Mayor ECONOMIC DEVELOPMENT CORPORATION BY: • SCOPE OF SERVICES The 1993-94 industrial promotion agreement between the City of Redding and the EDC will help fund portions of both the local business development and manufacturing recruitment componants. The following activities are highlights of the program elements, as well as goals and objectives for the upcoming year. I. ENTERPRISE ZONE ADMINISTRATION • EDC's responsibility for the administration of the Shasta Metro Enterprise Zone will include a number of activities, including coordinating with the Department of Commerce and the Franchise Tax Board for technical assistance when needed. • The EDC will be responsible for any reporting requirements required by Department of Commerce, including the annual report. • The Zone Coordinator will also oversee the Business Retention Program as documented in the final application. The EDC will sponsor seminars for local businesses relating to Enterprise Zone benefit. • The Zone Coordinator will report to the Shasta Metro Enterprise Zone Advisory Board on Zone activities. • The Shasta Metro Enterprise Zone Marketing Plan will be administered by EDC and the Zone Coordinator. • The Zone Coordinator will administer any Enterprise Zone expansion process in conjunction with the Enterprise Zone Advisory Board. • EDC staff will continue to market Zone benefits to local business through service club presentations, advertising, and coordinated job development activities with the PIC, EDD, GAIN and chambers of commerce. II. TRADE SHOWS/CONFERENCES As part of the Enterprise Zone Marketing plan the EDC will participate in the Medical Design and Manufacturing trade show in January 1994 either as part of the regional NorCAI IDEA activity or Team California. Participation in this trade show is consistent with EDC's focus on medical device manufacturing as one of the prime target industries. • Scope of Services Page 2 III. AIRPORT AREA MARKETING • The EDC will continue its airport industrial area marketing of both public and private lands utilizing a direct mail campaign. The EDC will also produce marketing collateral designed to highlight advantages of the city's airport industrial and business park. IV. INDUSTRIAL DEVELOPMENT RESEARCH COUNCIL The City of Redding will support EDC's membership activities in IDRC, the professional association for corporate real estate executives, facility managers and site location specialists. Activities may include conferences, chapter meetings and site visits to Shasta County. V. SHASTA COUNTRY BROCHURE The primary marketing collateral utilized by the EDC is the Shasta Country brochure with its demographic inserts. This year a reprint will be made of the brochure as well as a complete update of the inserts and area information. Costs for this project will be split between the City of Redding and the County of Shasta. VI. ECONOMIC DEVELOPMENT VIDEO Due to the numerous changes that have occurred in the development of Shasta County, the economic development video produced as part of the video package for the City of Redding requires updating. To the extent possible, footage utilized in the original production will be reused. This project will be co -funded by the City of Redding, the County and the Shasta Dam Area Public Utilities District. VII. GENERAL MARKETING EDC will continue to aggressively market for new manufacturing and will coordinate relocation and expansion projects through various leads and referrals including but not limited to Department of Commerce and private sector consultants. The City of Redding will help fund a major portion of the EDC marketing and follow-up component including coordination of site visits, gathering of information and providing personal assistance to potential clients. VIII. PRINT ADVERTISING EDC will coordinate its print advertising/direct mail campaign through NorCal IDEA again using the Coopers & Lybrand FIT Analyses as a focus for direct mail activities. • Scope of Services Page 3 E EDC will coordinate site visits with industrial relocation prospects throughout the year. These visits will include site location information, meetings with appropriate City staff, and other mootings as required for labor force, construction, education, etc. Following are the quantitative goals and objectives which faiMl performance of this Scope of Services is intended to achieve: 1. EDC's involvement in the NorCal IDEA regional print advertising/direct mail campaign will produce 300 leads. (beads are unqualified responses to ads that require follow-up.) 2. EDC staff will provide information as requested through telephone, walk-ins, or referrals. City of Redding promotional materials will be made available to 200 general informational requests. 3. EDC will conduct an airport area direct mail campaign that will produce 100 leads. 4. EDC's involvement in trade shows is also expected to produce 100 leads. S. EDC will coordinate 30 new a&ve relocation or expansion projects that will initiate during the fiscal year. (Active projects are bona fide companies coordinated through site location consultants, 'Tirade and Commerce Agency or direct company contacts.) 6. WC will coordinate ten site visits with qualified prospects in the upcoming year and will promote the City of Redding as part of those visits. 7. It is expectod that the EDC will coordinate the relocation of two new businesses to the City of Redding. 8. 71c EDC General Manager is the liaison to the business community and will make six presentations to local service clubs and business organizations on economic development activities. 9. The EDC will sponsor three Enterprise Zone seminars. 6 C� Proposed Costs/ General Enterprise Airport Marketing $ I,000.00 Site visits 1,000.00 Brochure Inserts 4,680.00 Video 1,500.00 Support of IDRC Activities 5,000.00 Trade Show $ 2,000.00 Promo/Materials/Seminm 834.00 Sub Total $ 13,180.00 $ 2,834.00 SalarWftnefits .: X WMA TOTALS$509000.00 $30,000.00