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6.3 Economic Development Agreement AmendmentCITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 10/15/12 4:00 P.M. ORIGINATING DEPARTMENT: FISCAL APPROVAL: AGENDA SECTION NO: 6 BY: CITY MANAGER’S OFFICE FINAL APPROVAL: ITEM NO: Page 1 3 BY: Jason A. Gage, City Manager BY: ITEM: Resolution No. 12-6938 An action authorizing the Mayor to sign the First Amendment to the 2012 Economic Development Services Agreement between the City of Salina and the Salina Area Chamber of Commerce. BACKGROUND: In December of 2011, the City Commission approved a one-year agreement with the Salina Area Chamber of Commerce (“Chamber”) that allows them to provide economic development services on our behalf. This Agreement included a new approach that addressed: Standard of Excellence, Standard of Representation and a split fee that addresses both the provision of basic services (base - $85,000) and five specific performance objectives (up to $90,100). One of the specific performance objectives requires the Chamber to hire an International Economic Development Council (IEDC) certified economic developer (CEcD) by March 31st of this year. An alternative approach is to have the services typically provided by an in-house CEcD employee to be offered contractually, presuming an equal level of competency and expertise. This performance objective is valued at $20,100. The Chamber has made a diligent effort to hire this position. They found that few economic developers have attained this certification, making it very difficult to recruit individuals at this qualification level. As a result, the Chamber has used both contractual services and assistance from the Airport Authority to temporarily address some of the required tasks. Due to the difficulty in recruiting a CEcD certified economic developer, the Chamber has requested a revision to this section of the Agreement. The request is to: 1) allow the Chamber to hire an economic development professional with significant progress toward either obtaining the CEcD certification or completing the University of Oklahoma Economic Development Institute (EDI) program; and 2) amend the hiring deadline to December 31, 2012. The Agreement revisions are attached for your review. The public entity support staff members (city manager, county administrator and airport authority director) have considered this request and agree that it will meet our needs. As mentioned earlier, the 2012 Agreement with the Chamber is only for one year. As a result, staff will work with Chamber officials to present to you a 2013 economic development services agreement for consideration in the upcoming weeks. FISCAL NOTE: Not applicable CONFORMANCE WITH STRATEGIC PLAN GOAL #3: The City will provide the highest quality of services, consistent with governing body direction, available resources and staff commitment to quality. Staff believes this First Amendment to the Economic Development Services Agreement will still provide a framework to enhance the overall level of economic development services for our community and meet the expectations of this goal. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 10/15/12 4:00 P.M. ORIGINATING DEPARTMENT: FISCAL APPROVAL: AGENDA SECTION NO: 6 BY: CITY MANAGER’S OFFICE FINAL APPROVAL: ITEM NO: Page 2 3 BY: Jason A. Gage, City Manager BY: ALTERNATIVES and RECOMMENDED ACTION: Alternative #1: Approve Resolution No. 12-6938, authorizing the Mayor to sign the First Amendment to the 2012 Economic Development Services Agreement wit the Salina Area Chamber of Commerce. Alternative #2: Do not approve Resolution 12-6938 at this time. Staff recommends Alternative #1. Enclosure: Proposed First Amendment to the 2012 Economic Development Services Agreement Resolution No. 12-6938 FIRST AMENDMENT OF ECONOMIC DEVELOPMENT SERVICES AGREEMENT between the CITY OF SALINA, KANSAS and the SALINA AREA CHAMBER OF COMMERCE Introduction: This First Amendment to the Economic Development Services Agreement (“First Amendment”) made and entered into this _____ day of October, 2012, by and between the City of Salina, a municipal corporation (hereinafter called "City") and the Salina Area Chamber of Commerce (hereinafter called "Chamber"), by which the parties amend the specified subsections of the Economic Development Services Agreement between the parties dated December 29, 2011. 6. Performance Objectives. The Chamber shall make every reasonable effort to complete to the full satisfaction of the City the following performance objectives. a. Professional Economic Developer. The Chamber shall have on its economic development staff on or before December 31, 2012 (unless extended at the request of the Chamber and with the approval of the City) and shall make every reasonable effort to retain throughout the duration of this Agreement a professional economic developer that has made significant progress towards either obtaining the International Economic Development Council’s (IEDC) Certified Economic Developer (CEcD) designation or completion of the University of Oklahoma’s Economic Development Institute (OU/EDI) program. As an acceptable alternative, the Chamber may contract for those services otherwise provided for in this means with an individual or organization that possesses an equivalent level of competency and expertise. These services may include, but not be limited to: marketing of community and specific development sites, contacting site selection agents and prospective business prospects, development of prospective development incentive packages, preparation of benefit/cost analysis and coordination of business prospect site visits. 1 Incorporation and Ratification: The amendment set forth above is made pursuant to Section 13 of the Agreement and is incorporated and made a part of the Agreement. The Agreement is ratified as amended by this First Amendment. Binding Effect: This First Amendment shall be binding on the City and the Chamber as well as their successors in interest. EXECUTED by the duly authorized representatives of the parties on the day and year first stated above. City of Salina, Kansas By: _______________________________ Norman M. Jennings, Mayor ATTEST: By: _____________________________________ Lieu Ann Elsey, CMC, City Clerk Salina Area Chamber of Commerce By: _______________________________ Dennis Lauver, President 2 6. Performance Objectives. The Chamber shall make every reasonable effort to complete to the full satisfaction of the City the following performance objectives. a. IEDC Certified Professional Economic Developer. The Chamber shall have on its economic development staff on or before December March 31, 2012 (unless extended at the request of the Chamber and with the approval of the City) and shall make every reasonable effort to retain throughout the duration of this Agreement a professional economic developer an employee that has made significant progress towards either obtaining holds the International Economic Development Council’s (IEDC) Certified Economic Developer (CEcD) designation or completion of the University of Oklahoma’s Economic Development Institute (OU/EDI) program. As an acceptable alternative, the Chamber may contract for those services otherwise provided for in this means by an in- house IEDC certified economic developer with an individual or organization that possesses an equivalent level of competency and expertise. These services may include, but not be limited to: marketing of community and specific development sites, contacting site selection agents and prospective business prospects, development of prospective development incentive packages, preparation of benefit/cost analysis and coordination of business prospect site visits. 1 RESOLUTION NUMBER 12-6938 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A FIRST AMENDMENT TO THE 2012 ECONOMIC DEVELOPMENT SERVICES AGREEMENT N AGREEMENT WITH SALINA AREA CHAMBER OF COMMERCE. BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the Mayor is hereby authorized to execute a First Amendment to the 2012 Economic Development Services Agreement with Salina Area Chamber of Commerce, subject to the terms and conditions of the agreement. Section 2. That the City Clerk is hereby directed to file the original agreement and retain according to the City of Salina Records Management Policy. Section 3. That this resolution shall be in full force and effect from and after its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 15th day of October, 2012. Norman M. Jennings, Mayor (SEAL) ATTEST: Lieu Ann Elsey, CMC, City Clerk