2004-307S:\Our Doeuments\Ordinances\04\Chamber-2004-2005.doc
O INANCE No. MFP.4/'- 47
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 fimding 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 thisthe ~--'~ day of /~~_~ ,2004.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
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 COMMERCE
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 Demon 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 fi:om 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 fi:om 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 tunes. 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
Commeme will define responsibilities and appropriate uses for fimding as provided by this contract.
SECTION 2. That Section 6 "Term: Termination" of the Consolidation Amendment is
hereby amended to read as follows:
6. Term: Termination. This Agreement shall be effective for a term of one year fi:om
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, atter 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
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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 Agreem_ .er)t to be exec14ter] by its duly authorized
President as authorized by its Board of Directors on this ~ day of /~-f~/l , 2004.
CITY OF DENTON, TEXAS
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
CHAMBER OF COMMERCE
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 6,600
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 2, 500
Investor Relations:
Investor Relations 2,500 10,000 12,000 2,000
. .C. iv. i5..M..e.m..b..e.r.s.h. ~ .s ...................... 1,000 1,500 1,500
Overhead Expenses
Rent/Utilities for 1,014 sf @ 14.55/ff 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 I
Denton Economic Development Partnership
Marketing Work Plan
By Operating Budget
2004 - 2005
ED Operations (Public)
PROSPECT GENERATION
Target Marketing and Direct Mail:
Participation in National Business Aviation Association (NBAA)
w/North Texas Cormmssion, International Council of Shopping
Centers Annual Conference (ICSC) and direct mail campaigns.
$5,500
Client Site Visits:
Associated expenses to service clients as needed who have placed Denton
on their list for relocation or expansion.
$2,000
Brand Image:
City's portion of funding for image assessment project conducted
by consultant ABS Marketing.
$84,000
Allies Development
Promote Denton to Allies consisting of brokers, developers,
site consultants, and utility partners through regional DFW Marketing Team.
$3,000
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.
$11,000
MARKETING MATERIALS
Publications/Printing/Presentations:
Update economic profile, demographic reports, site industrial
Brochures, folders and aerial maps.
$10,000
ED PARTNERSHIP BOARD
Meetings:
Host Partnership Board meetings and member's attendance
at other functions.
Total Marketing program investment ED Operations (Public):
$1,000
$32,500
IMAGE ENHANCEMENT
Brand Image Campaign
Advertising Placement
Dallas Business Journal Book of Lists and special ED section
Fort Worth Business Press Book of Lists
ALLIES DEVELOPMENT
Memberships and associated meetings:
Hold memberships and participate in key local, regional and
national economic development organization meetings for
prospect development and networking. (TEDC, 1EDC, DAED.4,
GFWAED.4, NTC~4R, CORENet Global, etc.)
Allies Development and Sponsorships:
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
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.
PROMOTIONS
Promotions:
Promote Denton to corporate decision-makers and Allies by providing
mementos such as promotional pens, Ieathcr jotters, polo shirts, etc.
TRAVEL
Key Volunteers:
Provide basic travel expense for Washington Fly-In, etc.
ED Private
$25,000
$ 8,5OO
$10,500
$13,000
$2,000
$5,000
$5,000
$2,500
INVESTOR RELATIONS
Investor/Community Relations:
Provide opportunities for Investor interaction, communication and
networking. Also maintain membership in Rotary.
Total Marketing program investment for ED Private Budget:
$13,500
$85,000