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Home My WebLink About2004-307SAOur Documents\Ordinances\04\Chamber-2004-2005.doc ORDINANCE NO. — Q AN ORDINANCE APPROVING AN AMENDMENT TO AN ECONOMIC DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND DENTON CHAMBER OF COMMERCE, INCLUDING THE FUNDING OF AN IMAGE AND MARKETING PROJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, by Resolution No. 2004-030, adopted by the City Council on June 1, 2004, the Council agreed to provide $84,000 toward the funding in the 2004-2005 City Budget; and WHEREAS, the Council deems that the funding of the Image and Marketing Project, and the changes to the contract to recognize the role of the Economic Development Board and other changes are in the public interest and should be included in the Economic Development Agreement with the Chamber; NOW, THEREFORE; THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. City Council finds that the amendment to the Economic Development Agreement serves a municipal and public purpose and is in the public interest. SECTION 2. The Second Amendment to that Certain Consolidation Amendment of Economic Development Program Agreement between the City of Denton and the Denton Chamber of Commerce attached hereto and made a part hereof by reference (the "Amendment') is hereby approved. The Mayor, or in her absence the Mayor Pro Tern is hereby authorized to execute the Amendment on behalf of the City of Denton. The City Manager, or his designee is hereby authorized to carry out the City's rights and duties under the Amendment including authorization for the expenditure of funds provided for in the Amendment. The City Council finds that the Amendment services valid municipal and public purposes and is in the public interest. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the �day ofya&t�l, 2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: LXwA o j . I,l /Q m( ) APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Page 2 SECOND AMENDMENT TO THAT CERTAIN CONSOLIDATION AMENDMENT OF ECONOMIC DEVELOPMENT PROGRAM AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON CHAMBER OF This Second Amendment to the Consolidation Amendment of the Economic Develop- ment Program Agreement Between the City of Denton and the Denton Chamber of Commerce, originally entered into on October 7, 1997, made between the City of Denton, Texas, a Texas municipal corporation ("City"), and the Denton Chamber of Commerce ("Chamber"), for the purpose of providing for a program under chapter 380 of the Texas Local Government Code to promote economic development through the joint effort of the parties hereto, hereinafter referred to as the "Consolidation Amendment", all in accordance with the Denton Chamber of Commerce Operations — Contracted Services 2005 request as shown on and incorporated in the Operations — Contracted Services for 2004-2005 which is attached to and made a part of this Agreement for all purposes. WHEREAS, on August 15, 1989, the City and the Chamber entered into an Agreement for an economic development program ("Base Agreement"); and WHEREAS, the Base Agreement has been amended five times, on August 2, 1994, Au- gust 15, 1995, July 24, 1996, and October 7, 1997, when the City, the Chamber, and the then Economic Development Corporation of Denton, Inc., ("EDC") entered into an agreement to have the EDC perform all the economic development functions assigned to the Chamber by the Base Agreement, and September 7, 1999 when the Consolidation Amendment was amended to assign all of the obligations of the Consolidation Agreement to the Chamber of Commerce due to the dissolution of the Economic Development Corporation of Denton; and WHEREAS, the above -mentioned ordinances and the original Base Agreement and all amendments thereto and the Consolidation Amendment with the Chamber constitute an economic development program under Tex. Loc. Gov't Code §380.001, whereby the City contracts with the Chamber — a non-profit organization — to provide economic development services; and WHEREAS, the parties now wish to enter into a Second Amendment to the Consolidation Amendment to amend support services and establish funding for the fiscal year ending September 30, 2005; NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS AND CONDITIONS SET FORTH HEREIN: SECTION 1. Section 4 "Support Services and Funding" of the Consolidation Amendment is hereby amended to read as follows: 4. Support Services and Funding. The Chamber shall provide the office space, equipment and support staff necessary to the operations of the Office. The Chamber shall solicit and contribute private sector funds in the amount of $82,500. The City shall provide funding in the amount of $177,000; $90,000 from the Utilities Fund and $87,000 from the General Fund. Thereafter, the City and Chamber shall renegotiate funding shares for subsequent years. City funding will be distributed on an annual basis on October 1, 2004. In addition to the above amounts, the City agrees to provide the Chamber with funding in the amount of $84,000.00 to be used for Phase I for the Image and Marketing Project under the Chamber's agreement with Applied Behavorial Science. Any funds provided by the City pursuant to this Agreement shall be retained in an account separate and segregated from the Chamber's general operating fund and shall only be used for the purposes provided for in this Agreement. The Chamber and the Office shall keep current and accurate records of all funds received and expended, which shall be subject to inspection and audit by the City at all reasonable times. A monthly financial statement showing all current revenues, expenditures, and unexpended funds of the Office shall be provided to the City. All such financial records shall be subject to the Texas Public Information Act, Tex. Gov't Code Ch. 552. Economic Development Partnership Board (EDPB) Created. In order to promote a program for economic development, the City Council adopted Ordinance 2003-258, creating the Economic Development Partnership Board on August 19, 2003. The EDPB members were appointed by City Council on September 16, 2003. The EDPB was charged with: • Implementing the TIP Strategies Economic Development Action Plan adopted by City Council on May 20, 2003. • Designing economic development incentive policies and recommending those policies to City Council for adoption. • Acting as the recommending body to the City Council for specific project economic development incentives. • Reviewing and recommending Annual Work Plans and Budgets for the Denton Chamber of Economic Development and City Economic Development Department. Duties of Office. Each year, the Annual Work Plan and Budget for the Denton Chamber of Commerce will define responsibilities and appropriate uses for funding as provided by this contract. SECTION 2. That Section 6 "Tenn: Termination" of the Consolidation Amendment is hereby amended to read as follows: 6. Tenn: Termination. This Agreement shall be effective for a term of one year from the execution hereof, and shall be automatically renewable for successive periods of one year without the necessity of any action on the parties hereto, unless during any successive term, the City shall, after the initial funding provided for herein, fail to appropriate funding for any successive year, in which case this Agreement shall terminate. In any case, however, either party may terminate this Agreement by giving written notice to the other 30 days advance notice, in which case any unexpended funds provided by the City shall be returned to the City. SECTION 3. Save and except as amended hereby, all the original sections, subsections, paragraphs, phrases, and clauses of the Consolidation Amendment of October 7, 1997 and the Page 2 First Amendment of the Consolidation Amendment of September 7, 1999 shall remain in full force and effect. IN WITNESS HEREOF, the City has caused this Agreement to be executed by its duly authorized Mayor and the Chamber has caused this Agreemeilt to be exec tec by its duly authorized President as authorized by its Board of Directors on this 5Ub day of 2004. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY F�hvcddWq GUOw Oowmrn Tonhazts\99kham arendnrntdoc CITY OF DENTON, ActTEXAS L%l'(,Q/BY: (f(,, EULINE BROCY, MAYOR BY: eL �" /,- PRESIDENT Page 3 DENTON CHAMBER OF COMMERCE OFFICE OF ECONOMIC DEVELOPMENT ED Operations - Contracted Services 2004-2005 Item 2003 BUDGET 2004 BUDGET 2005 PROPOSED Change Income: City of Denton 86,969 86,969 171,000 84,031 Denton Municipal Utilities 89,968 89,968 90,000 32 Total Income 176,937 176,937 261,000 84,063 Disbursements: General Administration: Salaries 93,500 93,500 95,000 1,500 Consultant/Temp Services 1,200 1,500 1,500 Accounting 1,800 1,800 2,000 200 Auto Allowance 4,200 4,200 5,400 1200 Retirement 2,000 4,500 5,000 500 Payroll Taxes 8,000 8,000 8,000 Auto Mileage 1,800 1,800 1,800 Medical & Dental Insurance 4,500 5,500 11,000 5,500 Workers Comp Insurance 800 800 900 100 Audit 1,200 1,200 1,200 Telephone/DSL 7,200 7,200 7,200 Postage 2,000 2,000 2,000 Office Supplies 1,500 1,500 1,500 Training 3,500 2,500 2,000 -500 Rent/Utilities/Phone Eqmt./Parking 0 - - Programs: Prospect Generation: Target Marketing 4,000 1,000 4,000 3000 Client Site Visits 2,300 1,500 2,000 500 Direct Mail 4,000 - 1,500 1500 Allies Development 3,000 1,500 3,000 1500 Business Expansion and Retention: Small Business Development Center 8,937 8,937 11,000 2063 Image Enhancement: Brand Image 13,000 20,000 84,000 64,000 Marketing Materials Upgrade Publications & Printing 8,500 8,000 10,000 2000 ED Partnership Board Meetings 1,000 1000 Total Disbursements 176,937 176,937 261,000 84,063 DENTON CHAMBER OF COMMERCE OFFICE OF ECONOMIC DEVELOPMENT Private Sector Account 2004-2005 2003 BUDGET 2004 BUDGET 2005 PROPOSED Change Income: Private Sector Investment 70,000 50,000 82,500 32,500 Sponsorships 2,500 2,500 2,500 Misc. Income 2,500 - - Private In -kind for Rent/Utilities 14,724 14,724 14,724 Revenue drawn down from reserves 25,000 25,000 0 -25,000- Total Income 114,724 92,224 99,724 7,500 Expenditures: Image Enhancement Brand Image Campaign 8,000 25,000 25,000 Advertising Placement 28,500 7,500 7,500 Agency Costs 3,000 1,000 1,000 Allies Development: Memberships 3,500 3,500 3,500 Membership Meetings 5,000 5,000 5,000 DFW Marketing Team 2,000 - 3,000 3,000 Sponsorships 2,500 2,500 2,500 Miscellaneous Meetings 2,000 2,000 2,000 Allies Development 7,500 7,500 7,500 LoopNet Internet Real Estate Link 2,000 2,000 2,000 Business Retention: Major Employers Appreciation - 5,000 5,000 Promotions: Promotional items 5,000 5,000 5,000 Travel - Key Volunteers 2,500 2,500 Z500 Investor Relations: Investor Relations 2,500 10,000 12,000 2,000 Civic Membershps 1,000 1,500 1,5 00 Overhead Expenses Rent/Utilities for 1,014 sf @ 14.55/ft 14,724 14,724 14,724 ED Strategic Implementation Plan ` 25,000 Total 114,724 92,224 99,724 7,500 money for ED Consulting earmarked from reserve account Denton Economic Development Partnership Marketing Work Plan By Operating Budget 2004 - 2005 PROSPECT GENERATION ED Operations (Public) Target Marketing and Direct Mail: $5,500 Participation in National Business Aviation Association (NBAA) w/ North Texas Commission, International Council of Shopping Centers Annual Conference (ICSC) and direct mail campaigns. Client Site Visits: $2,000 Associated expenses to service clients as needed who have placed Denton on their list for relocation or expansion. Brand Image: $84,000 City's portion of funding for image assessment project conducted by consultant ABS Marketing. Allies Development $3,000 Promote Denton to Allies consisting of brokers, developers, site consultants, and utility partners through regional DFW Marketing Team. BUSINESS EXPANSION AND RETENTION Small Business Development Services: Fund matching grant to North Central Texas College supporting staff and minimal overhead to provide initial free consulting to those starting new business ventures. lu/\; ,4 092MI"_7.UUM Publications/Printing/Presentations: Update economic profile, demographic reports, site industrial Brochures, folders and aerial maps. ED PARTNERSHIP BOARD Meetings: Host Partnership Board meetings and member's attendance at other functions. $11,000 $10,000 $1,000 Total Marketing program investment ED Operations (Public): $32,500 ED Private IMAGE ENHANCEMENT Brand Image Campaign $25,000 Advertising Placement $ 8,500 Dallas Business Journal Book of Lists and special ED section Fort Worth Business Press Book of Lists ALLIES DEVELOPMENT Memberships and associated meetings: $10,500 Hold memberships and participate in key local, regional and national economic development organization meetings for prospect development and networking. (TEDC, IEDC, DAEDA, GFWAEDA, NTCAR, CORENet Global, etc.) Allies Development and Sponsorships: $13,000 Promote Denton to Allies consisting of area brokers, developers, site consultants, and utility partners, and through the regional DFW Marketing Team. Internet Real Estate Link: Provide Internet real estate link (LoopNet) to Denton Chamber ED website $2,000 to allow better accessibility of available land and buildings. BUSINESS RETENTION Major Employers Appreciation Event: Host event to express appreciation for their presence in the community. $5,000 PROMOTIONS Promotions: $5,000 Promote Denton to corporate decision -makers and Allies by providing mementos such as promotional pens, leather jotters, polo shirts, etc. TRAVEL Key Volunteers: $2,500 Provide basic travel expense for Washington Fly -In, etc. INVESTOR RELATIONS Investor/Community Relations: $13,500 Provide opportunities for Investor interaction, communication and networking. Also maintain membership in Rotary. Total Marketing program investment for ED Private Budget: $85,000