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HomeMy WebLinkAboutReso. 1990-403 - Approving the funding agreement between the city of redding and the economic devlopment corp Ill 411 RESOLUTION V12; 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 1990-91, 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 1990-91, 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 Corpora- tion 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 21st day of August , 1990, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Arness, Dahl , Fulton & Buffum NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Moss ABSTAIN: COUNCIL MEMBERS: None 2 / NANCY /BUFFUM, IM005r City of' Redding ATTEST: FORM APPROVED: r..6e-i 077-6(-1-6 'dezege4,',1 ETHEL A. NICHOLS, City Clerk R' 0DALL A. HA S, Yity Attorney I • FUNDING AGREEMENT THIS AGREEMENT made and entered into this day of !I' 1990, 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" : WITNESSETH: 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 j. 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 City;III, and WHEREAS, the proposed Marketing Program by the EDC is an extension of the EDC' s business recruitment project which began in 1980, and will be a continuation 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, the City of Redding, and Shasta County will provide a productive and coordinated program for job creation and business development; NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED by and between the parties hereto as follows : -1- 411 I ` 1 . The EDC does hereby agree during the term hereof to perform the task of industrial promotion as outlined in the execu- tive summary attached hereto and incorporated here in by reference. iI 2. To partially offset the EDC' s costs incurred in providng and maintaining said industrial promotion, 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 1990-91 the sum of Fifty Thousand Dollars ( $50,000. 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 1990-91, and at the end of each 1 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, 1990, and terminating June 30, 1991 . i -2- 411 6 . No member of the City Council or of any Board, and no officer or employee of City shall be or become, directly ory or i11 ndi- 11 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 of employee of City for any purpose. 8 . This agreement is granted upon the express condition that II 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 i , indemnify and save harmless City, its officers, agents, and employ- ees, 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. 9 . It is understood and agreed as a condition of this Agree- 1 ment 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 ri effect public liability insurance in the minimum amounts of , 1,1 $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 -3- I iI 1 • 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 Cer- r tificate of Insurance evidencing such coverage and notice require- ment 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 g provide workers ' compensation insurance on its employees, and furnish the Risk Manager of City with a Certifi- I' cate evidencing such insurance, to be approved by him, prior to the L jl 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 'L 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 li so as to become subject to the workers' compensation laws of Cali- 11 1 , fornia 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 I! -4- j • j be cured or remedied within sixty ( 60) days after notice thereof by City, in addition to any other remedies provided for in the Agree- ment, 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 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 ECONOMIC DEVELOPMENT CORPORATION BY: BY: d. ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVAL: �Ihli ' ' RANDALL A. HAYS, City Attorney 1, -5- �iJ l • • II, EXECUTIVE SUMMARY Scope of Services �;' The 1990-91 marketing effort for the EDC/City of Redding contract li will involve traditional activities relating to business recruit- ment. The direction for EDC marketing is derived from the SRI H 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 FY 1990-91 . I . TRADE SHOWS Trade shows will continue to be a resource in EDC' s Marketing 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 fol- lowing trade shows: 1 . Medical Design - Anaheim, January 2. Undesignated - requires approval of both parties i II . BROCHURES The following promotional materials will be updated: 1 . Redding Metro Report 2 . Other promotional materials as agreed III . VIDEO The final editing of the Economic Development video has been completed and this year' s contract will provide for final production costs. it IV. PRINT ADVERTISING EDC will coordinate a $12, 000 print advertising budget funded through a Rural Economic Development competitive grant. EDC staff time will coordinate, implement and follow up leads generated through this effort. V. MARKETING II EDC will continue to aggressively market for new manufac- ;1 turing and will coordinate relocation and expansion projects through various leads and referrals including but ii 11, 411 !II Executive Summary Scope of Services Page 2 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 :1 including coordination of site visits, gathering of information and providng personal assistance to potential clients. VI . ENTERPRISE ZONE A major component of this year' s EDC Program 1990-91 is the coordinator of the multi-jurisdictional Enterprise Zone application with the City of Redding, the City of ,IAnderson, and the County of Shasta. EDC will provide 1 . staff support for the pre-application, and if successful, the final application. VII . 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 fl, 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 jl contract with an outside consultant. ! Following are the quantitative goals and objectives which faithful performance of this Scope of Services is 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 Depart- ment of Commerce, referrals to the EDC office or at the request of the City of Redding. 2 . EDC' s print advertising campaign will produce 200 leads that will be aggressively tracked by EDC staff. 3 . EDC' s involvement in trade shows is also expected to li produce 200 leads to be tracked. Ip 4 . EDC staff will provide information as requested through telephone, walk-ins, or referrals. City of Redding promotional materials will be made available to 150 general informational requests. 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. la 1 411 Executive Summary Scope of Services Page 3 6 . It is expected that the EDC staff will consult with ten ( 10) 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 eight ( 8 ) 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 included data input on industrial properties in the City of Redding. P• . • BUDGET SUMMARY FY 1990-91 Project Costs/Contract Services: l i Trade Shows $ 2, 000 . 00 Brochures 2 , 500 . 00 Video 1 , 500 . 00 Enterprise Zone 1,000 . 00 Subtotal 7,000 . 00 I; Salaries and Fringe Benefits: General Manager and Secretary/Bookkeeper 29, 861 . 00 ( 1) Indirect Overhead 13, 139 . 00( 2 ) Total Budget $ 50,000 . 00 ,i, 11 (1) Salaries and fringe benefits will include, but not limited to, business { recruitment, coordination site location, general marketing, visitation, walk-ins, telephone and other industrial promotion activities work from 111' which the City and its citizens are benefitted. (2) Indirect overhead shall be computed annually as a percentage of direct labor cost and will include, but not limited to, office overhead expenses for maintenance, repairs, rent, utilities, telephone, supplies, dues, subscrip- ' tions, accounting, legal, insurance, and promotion expenses from which the City and its citizens are benefitted. agree. edc/lt I' i