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HomeMy WebLinkAboutReso. 1989-414 - Approving the funding agreement between the city of redding and the economic development corporation for industrial promo I. t ,i r RESOLUTION NO. U y/q 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 1989-90 , AND AUTHORIZING THE MAYOR TO SIGN SAME. IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows : 1 . That 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 1989-90 , 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, 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 21st day of November , 1989 , and was duly adopted at said meeting by the following vote: AYES : COUNCIL MEMBERS: Dahl , Fulton , Johannessen & Carter NOES: COUNCIL MEMBERS : None ABSENT: COUNCIL MEMBERS: Buffum ABSTAIN: COUNCIL MEMBERS : None 411i i C%QRZ SCOTT CARTER, Mayor City of Redding ATTEST: ORM aPROVED: &e . .21-e.-44" / ,A '( ETHEL A. NICHOLS , City Clerk RAh,DALL A. HAYS , C ty Attorney I !� 4 4 • FUNDING AGREEMENT THIS AGREEMENT made and entered into this day of 1989 , by and between the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "City, " and the � 1 � 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 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; 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 I. program for job creation and business development; I j I � • • 4 • 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 as outlined in the execu- tive summary attached hereto and incorporated herein by reference. 2 . To partially offset the EDC' s costs incurred in providing and maintaining said industrial promotion, City agrees to pay the ' t EDC for said services, as outlined in the Scope of Services and Budget Summary attached hereto, and during the fiscal year 1989-90 the sum of Fifty Thousand Dollars ( $50,000. 00) total reimbursement upon submission of invoices to the City' s Director of Finance. I i 3 . The EDC covenants and agrees to submit a summary statement II 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 1989-90, 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. I j -2- 5. The term of this Agreement shall be for a period of one ( 1) year commencing on July 1, 1989, and terminating June 30, 1990. 6 . No member of the City Council or of any Board, and no officer or employee of City shall be or become, directly or indi- rectly, financially interested in this Agreement or in the workor 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 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- 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 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 -3- 110 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 Cer- 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 provide workers' compensation insurance on its employees, and furnish the Risk Manager of City with a Certifi- cate 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 Cali- 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 -4- • • be cured or remedied within sixty ( 60 ) days after notice thereof by 1 City, in addition to any other remedies provided for in this 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: SCOTT CARTER 1 Mayor ECONOMIC DEVELOPMENT CORPORATION BY: BY: A'1 T EST: I I ETHEL A. NICHOLS, City Clerk FORM APPROVAL: RANDALL A. HAYS, City Attorney -5- 1 EXECUTIVE SUMMARY Scope of Services The 1989-90 marketing effort for the EDC/City of Redding contract will involve traditional activities relating to business recruit- ment. 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 FY 1989-90. I . TRADE SHOWS Trade Shows are an excellent source for personal contact with potential relocation leads. EDC' s trade show activityfor FY 1989-90 will be directed to more cost efficient cooperative sponsorships through the Department of Commerce and Nor Cal Idea, an organization of Northern California Economic Develop- ment agencies. The following trade shows are currently planned: 1 . Woodworking Machinery and Furniture Supply —Anaheim, August 2 . Wescon - San Francisco, November 3 . Medical Design - Anaheim, January 4 . Undesignated Trade Show - requires approval of both parties II . BROCHURES The following promotional materials will be updated coopera- tively with other EDC funding sources. 1. Redding Metro Report 2 . Shasta County Manufacturing Directory 3 . Presentation folders and materials III . VIDEO Final editing and production of the Economic Development video produced by DLA, Inc. , will be completed. IV. PRINT ADVERTISING EDC will participate in the Nor Cal Idea Marketing campaign, a cooperative effort funded by Northern California EDC's, Pacific Gas and Electric and the Department of Commerce. Additional, • . Executive Summary Scope of Services Page 2 if cost effective, direct advertising in a targeted trade journal will take place. V. COMPUTERIZED INFORMATION SYSTEM This industrial site .location tool will be completed and a plan developed for its implementation. VI . AIRPORT MARKETING PLAN The draft Airport Marketing Plan submitted as part of the FY 1988-89 contract will be completed after review and recom- mendations by City staff. 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 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 con- sultant. � • r . • • • .• �I II BUDGET SUMMARY FY 1989-90 Project Costs/Contract Services: Trade Shows $ 2 , 500. 00 Brochures 4,000 . 00 Video 2 , 600. 00 Advertising 1,400 . 00 Subtotal 10,500. 00 Salaries and Fringe Benefits: General Manager and Secretary/Bookkeeper 28, 135.00(1) Indirect Overhead 11, 365. 00( 2) Total Budget $ 50,000. 00 (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 which the City and its citizens are benefited. (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, subscriptions, accounting, legal, insurance, and promotion expenses from which the City and its citizens are benefited.