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HomeMy WebLinkAboutReso 91-328 - Approve funding agreement between the COR & the economic Dev Corp for Industrial Promotion in the REdding Area during FY 1991-92 RESOLUTION gl-.3.ZS 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 1991-92 , AND AUTHORIZING THE CITY MANAGER 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 1991-92, a true copy of which is attached hereto and incorporated herein. 2 . That the City Manager 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 City Manager 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 6th day of August 1991, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS:Arness, Buffum, Fulton & Moss NOES: COUNCIL MEMBERS:None ABSENT: COUNCIL MEMBERS:Dahl ABSTAIN: COUNCIL MEMBERS:None Charlie r4oss, Vice Mayor City of Redding ATTEST: FORM APPROVED: ETHEL A. NICHOLS, City Clerk RA14DALL A. HAY5, C' y Attorney i a FUNDING AGREEMENT THIS AGREEMENT made and entered into this day of , 1991, 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 executive summary 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 1 administration, the City agrees to pay the EDC for said services, as outlined in the Scope of Services and Budget Summary attached hereto, and during the fiscal year 1991-92 the sum of Eighty Thousand Three Hundred Fifty Dollars ( $80,350 . 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 1991-92, 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, 1991, and terminating June 30, 1992. 6 . No member of the City Council or of any Board, and no officer or employee of City shall be or become, directly or indirect- ly, 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 negli- 2 gence or other legal fault of EDC or its officers, agents, employees and members. 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. 00 for injury or death to any person and $500, 000 .00 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 Certificate 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 Califor- nia provided, however, that should EDC later become subject to the workers ' compensation provisions 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 3 cured or remedied within sixty ( 60 ) days after notice thereof by City, in addition to any other remedies provided for in the Agreement, City 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 f 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. CITY OF REDDING BY: ROBERT M. CHRISTOFFERSON City Manager i ECONOMIC DEVELOPMENT CORPORATION BY: BY: ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVAL: RANDALL A HAYS, City Attorney 4 EXECUTIVE SUMMARY i Scope of Services The 1991-92 marketing effort for the EDC/City of Redding contract will involve traditional activities relating to business recruitment. The direction for EDC marketing is derived from the SRI International Study, an analysis of the Redding area' s attributes and constraints, and the EDC Marketing Plan developed in 1986 as a response to the Shasta County Economic Development Task Force. The following are the primary Marketing activities to be performed in Fiscal Year 1991-92 : I . ENTERPRISE ZONE ADMINISTRATION o EDC' s responsibility for the administration of the Shasta Metro Enterprise Zone will include a number of activities. The EDC General Manager, as the Zone Coordinator, will coordinate Zone activities with the Department of Commerce and will arrange for technical assistance when needed. o The EDC will be responsible for any reporting require- ments required by Department of Commerce. o The Zone Coordinator will also oversee the Business Retention Program as documented in the final applica- tion. The main emphasis in the first year will be education regarding Zone benefits. The EDC will sponsor three ( 3) seminars for local businesses relating to Enterprise Zone benefit. o The Zone Coordinator will oversee the required changes to marketing materials to properly reflect the Shasta Metro Enterprise Zone benefits. o The Zone Coordinator will communicate with the Shasta Metro Enterprise Zone advisory Board on Zone activi- ties. o The Shasta Metro Enterprise Zone Marketing Plan will be administered by EDC and the Zone Coordinator. o The Business Retention Program coordinated by the EDC Information Specialist will be a prime benefit to City of Redding businesses located in the Zone. The retention effort will be directed at informing local businesses personally about, Zone benefits, as well as cataloging local business needs. Executive Summary Scope of Services Page 2 II . TRADE SHOWS Trade shows will continue to be a resource in EDC' s Market- ing Strategy and where possible EDC will participate in cooperative sponsorships through the Department of Commerce, Nor-Cal IDEA, or the Enterprise Zone Program. This year' s City of Redding contract will fund the following trade shows: 1. Medical Design - Anaheim, January 2. Data Processing Seminar III . BROCHURES The following promotional materials will be updated: 1 . Airport Flyer 2 . Enterprise Zone Street Map/Boundary Map 3 . City of Redding Profile IV. AIRPORT FLYER EDC will coordinate the development of an Airport Area Marketing Flyer. This flyer will depict the Airport Road Development Area, public and private land, centered around the virtues of the Municipal Airport. EDC will attempt to develop this resource as a private/public partnership. V. MARKETING EDC will continue to aggressively market for new manufactur- ing 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 informa- tion and providing personal assistance to potential clients. VI . TARGET INDUSTRY MISSION This year EDC will utilize its Final Industry Target Analyses to focus on Bay Area or Southern California industry clusters. Representatives will conduct a 2-3 day mission with the intention of talking directly with company Executive Summary Scope of Services Page 3 representatives. Research in advance will target companies that may be expanding. Advanced preparation will include pre-set appointments. VII . PRINT ADVERTISING EDC will coordinate its print advertising/direct mail campaign through NorCal IDEA and the Rural Economic Develop- ment Competitive Grant. This year, EDC will use the Coopers & Lybrand FIT Analyses as a focus for direct mail activities. VIII . SITE VISITS 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 meetings as required for labor force, construction, education, etc. IX. REVOLVING LOAN FUND The RLF will continue to be administered by the EDC. As part of this function, EDC will notify the City of Redding of any new loans and will provide semi-annual status. reports. EDC will carry out its RLF activities as per prescribed guidelines either by staff function or by contract with an outside consultant. Following are the quantitative goals and objectives which faithful performance of this Scope of Services in intended to achieve. 1 . EDC will coordinate 20 industrial relocation or expansion projects with the City of Redding. These projects will be conducted through site location consultants, the Department of Commerce, referrals to the EDC office or at the request of the City of Redding. 2 . EDC' s print advertising/direct mail campaign will produce 300 leads that will be aggressively tracked by EDC staff. 3 . EDC' s involvement in trade shows is also expected to produce 200 leads. 4. EDC staff will provide information as requested through telephone, walk-ins, or referrals. City of Redding promo- tional materials will be made available to 150 general informational requests. Executive Summary Scope of Services Page 4 5 . The EDC General Manager is the liaison to the business community and will make ten ( 10) presentations to local service clubs and business organizations on economic development activities. 6 . It is expected that the EDC staff will consult with fifty ( 50) City of Redding businesses seeking help for retention or expansion purposes. 7 . It is expected that the EDC will coordinate the relocation of two ( 2) new businesses to the City of Redding. 8 . EDC will coordinate ten ( 10) site visits in the upcoming year and will promote the City of Redding as part of those visits by qualified business prospects. 9 . EDC will implement the Computerized Industrial Information System which will include data input on industrial proper- ties in the City of Redding. 10. The EDC will fund three ( 3 ) City of Redding RLF projects for local businesses. BUDGET SUMMARY - FISCAL YEAR 1991-92 Proposed Costs/ General Enterprise Contract Services Marketing Zone RLF Contracts $ 1, 000. 00 Site Visits 1,000 .00 Trade Show 2,000. 00 Trade Mission 2,000. 00 Airport Flyer/Redding Profile 2,000. 00 Prt. Adv. /Direct Mail 1, 500. 00 $ 1,000.00 EZ Boundary Map 1,000.00 Seminar/Data Processing 1, 500. 00 Redding EZ Seminar 750.00 Subtotal 11 ,000. 00 2,750.00 Salaries/Benefits 28,300. 00 20,000.00 Indirect Overhead 10,700. 00 7,600.00 TOTALS $50, 000. 00 $30,350.00