HomeMy WebLinkAbout32-00 RESOLUTIONRESOLUTION NO. 32-00
M ICROPJLMED
A RESOLUTION OF THE CITY OF FAYETTEVILLE
CERTIFYING LOCAL GOVERNMENT ENDORSEMENT OF
COMPUTER MANAGEMENT INFORMATION SYSTEMS, INC.
TO PARTICIPATE IN THE ADVANTAGE ARKANSAS
PROGRAM (a/k/a THE ARKANSAS ENTERPRISE ZONE
PROGRAM- ACT 947 OF 1993).
WHEREAS, the local government must endorse a business to participate in the Advantage
Arkansas Program and benefit from the refunds/tax credits as provided in the Arkansas Enterprise
Zone Program Regulations of 1993; and
WHEREAS, the said endorsement must be made on specific form available from Arkansas
Department of Economic Development; and
WHEREAS, Computer Management Information Systems, Inc. located at 2927 N. Point
Circle, Suite 1, Fayetteville, Arkansas has sought to participate in the program and more specifically
has requested benefits accruing from construction of the specific facility; and
WHEREAS, Computer Management Information Systems, Inc. has agreed to furnish the
local government all necessary information for compliance.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FAYETTEVILLE, ARKANSAS:
Section 1. Computer Management Information Systems, Inc. is hereby endorsed by the
City of Fayetteville, Arkansas, for benefits from the refunds/tax credits as provided in the Arkansas
Enterprise Zone Program Regulations of 1993.
Section 2. The Department of Finance and Administration is hereby authorized to refund
local sales and use taxes to Computer Management Information Systems, Inc.
Section 3. This resolution shall take effect immediately.
PASSED AND APPROVED this 21' day of March , 2000.
APPROVED•
ed
ATTEST:
By:
4
eather Woodruff, City Clek7E'
By:
F Hanna, Mayor
NAME OF FILE:
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CROSS REFERENCE:
Date
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STAFF REVIEW FORM
Agenda Request
FOR THE FAYETTEVILLE CITY COUNCIL MEETING OF March 21, 2000
FROM:
Alett Little
Economic Development Department
ACTION REQUESTED: Approval of a resolution certifying local government endorsement of Computer
Management Information Systems located at 2927 N. Point Cir, Ste 1, Fayetteville, Arkansas to participate
in the Advantage Arkansas Program (Act 947 of 1993).
COST TO CITY:
$0
Cost of this request
Category/Project Budget
Category/Project Name
Account Number
Funds Used to Date
Program Name
Project Number
Remaining Balance
Fund
BUDGET REVIEW:
Budgeted Item
Budget Adjustment Attached
Budget Coordinator
Administrative Services Director
CONTRACT/GRANT/LEASE/REVIEW.
GRANTING AGENCY:
Acc
er
Date
ADA Coordinator
Date
City Att
y
Date
Internal Auditor
Date
Purchasing Officer
Date
STAFF RECOMMENDATION: Approval of the resolution which will allow Computer Management
Information Systems located at 2927 N. Point Cir, Ste 1, Fayetteville, Arkansas to receive the benefits from
refunds/tax credits as provided in the Advantage Arkansas Program, Act 947 of 1993.
Cant
hal,.
A 3.
Cross Reference:
New Item:
E anomic Develop meet Director
A. ' n ative S
Mayor
4
11
ces Director
Date
/h ,\
v/
Date
Dae
0
Previous Ord/Res#:
Orig Contract Date: .
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•
RESOLUTION No.
•
RESOLUTION OF THE CITY OF FAYETTEVILLE CERTIFYING LOCAL
GOVERNMENT ENDORSEMENT OF BUSINESS TO PARTICIPATE IN THE
ADVANTAGE ARKANSAS PROGRAM (ALSO KNOWN AS THE ARKANSAS
ENTERPRISE ZONE PROGRAM - ACT 947 OF 1993).
WHEREAS, the local government must endorse a business to participate in the Advantage
Arkansas Program and benefit from the refunds/tax credits as provided in the Arkansas Enterprise
Zone Program Regulations of 1993; and
WHEREAS, said endorsement must be made on specific form available from Arkansas
Department of Economic Development, and
WHEREAS, Computer Management Information Systems located at 2927 N. Point Cir, Ste 1,
Fayetteville, AR has sought to participate in the program and more specifically has requested
benefits accruing from construction of the specific facility; and
WHEREAS, Computer Management Information Systems has agreed to furnish the local
government all necessary information for compliance.
NOW THEREFORE BE IT RESOLVED BY THE CITY OF FAYETTEVILLE, ARKANSAS,
THAT:
1. Computer Management Information Systems be endorsed by the City of Fayetteville,
Arkansas, for benefits from the refunds/tax credits as provided in the Arkansas Enterprise
Zone Program Regulations of 1993.
2.
3. The Department of Finance and Administration be authorized to refund local sales and use
taxes to Computer Management Information Systems.
4. This resolution shall take effect immediately.
Date Passed:
Attest:
City Clerk
Fred B. Hanna, Mayor
• •
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
FRED B. HANNA, MAYOR
4500 S. School Ave., Ste. A
Fayetteville, AR 72701
Telephone: 501-575-8301
Fax: 501-575-8304
Economic Development Department
Alett S. Little, Director
TO: Fayetteville City Council
FROM: Alett Little, Economic Development Director
DATE: February 25, 2000
SUBJECT: Explanation of the Advantage Arkansas (Enterprise Zone) Program
The Advantage Arkansas Program provides income tax credits and sales and use tax refunds
to qualifying businesses that create new jobs as a result of location, expansion, or facility
modernization projects anywhere in Arkansas. Once the endorsement resolution is passed, the
application must be filed with the Arkansas Department of Economic Development within 60
days to use the endorsement resolution as the starting date for counting new employees and
project costs. If the application is received after the 60 day period, only those employees hired
after the date the application is approved and only those project costs incurred from the date
the endorsement resolution is received will be eligible for benefits.
To qualify for Advantage Arkansas, a business' operations must fit one of the following
descriptions throughout the project term:
• A manufacturer in Standard Industrial Classification (SIC) codes 20 - 39 including
semiconductor and microelectronic manufacturer creating one (1) or more net new full-
time permanent jobs.
• Computer businesses primarily engaged in providing computer programming services; the
design and development of prepackaged software; businesses engaged in digital content
production and preservation; computer processing and data preparation services;
information retrieval services; computer and data processing consultants and
developers. All businesses in this group must employ twenty-five (25) or more net new
full-time permanent employees, derive at least sixty percent (60%) of their revenue out
of state sales and have no retail sales to the general public;
•
• Businesses primarily engaged in commercial physical and biological research as
classified by SIC code 8731, which will employ one (1) or more net new full-time permanent
employees;
• Businesses primarily engaged in motion picture production which will employ twenty-five
(25) or more net new full-time permanent employees. All businesses in this group must
derive at least sixty percent (60%) of their revenue from out of state sales and have no
retail sales to the general public;
• An office sector business, which will employ twenty-five (25) or more net new employees
and have no retail sales to the general public;
• A national, corporate or regional headquarters which will employ twenty-five (25) or
more net new employees and have no retail sales to the general public; or
• A distribution center, with not retail sales to the public, creating twenty-five (25) or
more net new full-time permanent jobs.
• A trucking/distribution terminal (SIC 4231), with no retail sales to the public, creating
twenty-five (25) or more net new full-time permanent jobs.
• •
CMTS, INC PROJECT DESCRIPTION
CITY OF FAYETTEVILLE HIGH TECHNOLOGY CENTER
CMIS, Inc. is currently negotiating with the City of Fayetteville, Arkansas to build
a new 8,000 sq. ft. building on a site located in the City's new High Technology
Office Park. As one of the state's premier High Technology Companies, the city
is highly interested in locating CMIS as an anchor tenant.
The new facility is needed to meet the company's immediate and short-term
requirements for space for it's expanding operations. CMIS has experienced a
dramatic increase in sales due to the release of our new Voter Registration and
Election Management technology. While the building is desperately needed for
•operations, as one of the park's first tenants, we anticipate considerable
appreciation in the land and building's value as the park grows.
The project budget is as follows:
BUILDING, LAND & SITE IMPROVEMENTS $1,315,000
FURNISHING AND FIXTURES $ 60,000
TOTAL: $1,375,000
After four years of research and development CMIS, Inc. has completed the
development phase and has begun deployment of our new Windows NT Voter
Registration and Election Management system. Our 1999 Revenues of
$1,375,321 is a considerable improvement over 1998 revenues of $536,316. As
the pace of deployment quickens our 2000 revenues are expected to exceed
$2,300,000
At the current time our ability to provide a high level of support to our customers
is extremely limited by our limited by our small and crowded rented facility. The
lack of floor space, work stations, phone and computer systems, severely limits
our ability to recruit and hire staff required. Our ability to increase our marketing
and sales effort is also limited, by our lack of capacity.
•
BUSINESS DESCRIPTION
COMPANY HISTORY
a. History of the company and number of years in operation
CMIS was established in 1982 as a grant funded outreach project of the
Bureau of Business and Economic Research at the University of
Arkansas, Fayetteville. Its charter was to supply standardized software
and technology-based solutions to Arkansas county government and to
provide a low-cost, efficient solution to meet the requirements of Arkansas
Act 122, which mandated specific coding standards for county financial
accounting. The project was then expanded to include property tax
management, voter registration, jury selection, payroll management, etc.
Among other accolades, the program was nationally recognized in 1991
by the National Association of State Information Resource Executives
(NASIRE) as a technological innovator in the area of administrative
applications for government service In 1992, the project moved into the
private sector and became CMIS, Inc The goal of the new company was
to establish a new generation of Windows-based software for county and
state government. Application development began in 1992 on the
Windows-based Voter Registration system, and that system was first
installed in a mid-sized county in April of 1993.
In July of 1995, CMIS was awarded a contract to implement Arkansas' first
statewide voter registration system. The installation involved 83 county
sites, a centralized database, and a communications infrastructure. Work
on the contract began on July 21, 1995, and installation was completed on
time and within budget on December 22, 1995. The successful
completion, system structure, and communications infrastructure design of
the CMIS Voter Registration System has prompted Microsoft to compile a
case study on the Secretary of State project as an example of innovative,
forward-looking solutions for government
The successful six-month completion of the challenging statewide Voter
Registration System design, development, and implementation project
completed in December 1995, not only helped bnng Arkansas into
compliance with the National Voter Registration Act of 1993 (Motor Voter),
but also provided local election authorities with an unprecedented level of
beneficial functionality with which to better serve their constituents
CMIS developed the Arkansas Voter Registration and Election
Management System using the most technologically advanced software
1 •
and hardware tools available in 1995. As a result Arkansas has had the
benefit of what was truly a state-of-the-art solution as its technological
foundation. CMIS has continued to enhance and improve the base
Arkansas solution. Additionally during 1996 CMIS began developing a
new Voter Registration and Election Management System designed to be
even more responsive to the needs of Arkansas and a more diverse and
expanding customer base.
CMIS' primary focus on developing the best Voter Registration and
Election Management System available is reflected in our 1996-1998
Financial Summary. As a small Arkansas -based business, CMIS spent
most of its time and resources on the development of the best
technological solution and on the development of the best long-term
marketing partnership with which to market the solution. Fortunately
CMIS was able to accomplish our primary goals and demonstrate a
modest operating profit In 1998
In late 1998, CMIS and Global Election Systems, a national distributor of
election technology, entered into a 5 -Year Marketing Agreement under
which Global will exclusively market the CMIS Voter Registration and
Election Management System. Global Election Systems conducted a very
thorough and lengthy evaluation process that compared CMIS Voter
Registration and Election Management System to all other major domestic
voter registration solutions. Based on the positive results of this thorough
technical, legal, and business evaluation Global and CMIS have now
begun marketing together. It is important to note that due in part to the
marketing relationship with Global that CMIS has exceeded its entire 1998
contract revenue production dunng the 1st month of 1999.
•
BUSINESS PROSPECTS
a. Annual Revenue for the past three years.
The following is a summary of actual revenues for the past three
years:
1997
1998
1999
2000 Budget
Total Sales $365,253
b. Current Contracts:
$536,316
$1,375,320
$2,365,500
• •
During the past twelve months we have contracted to supply Voter
Registration and Election Management Technology and other services to
the Following State and Local Governments:
Support
ARKANSAS
Arkansas Secretary of State
COLORADO
Adams County Board of Elections
Douglas County Board of Elections
Initial Sale
$638,793
$216,155
$134,680
Annual
$210,000
$ 22,020
$ 13,400
IOWA
Linn County Board of Elections $125,000 $ 9,890
KANSAS
Johnson County Board of Elections $292,710 $ 0
Wyandotte County Board of Elections $ 92,255 $ 12,132
OHIO
Franklin County Board of Elections
Lucas County Board of Elections
Summit County Board of Elections
FLORDIA
St. Lucie County Board of Elections
Volusia County Board of Elections
$711,700 $ 102,069
$249,500 $ 19,960
$347,500 $ 25,109
$173,500 $ 15,000
$185,000 $ 16,475
NEW YORK
State Education Department - Board of Education Services
State Education Department — State Aid
TENNESSEE
Shelby County Board of Elections
Sullivan County Board of Elections (1998)
Wilson County Board of Elections (1998)
$690,000 $ 52,220
$ 10,700
$ 9,500
TEXAS
El Paso County Election Office $342,200 $ 21,500
WASHINGTON
King County Board of Elections $ 25,000
• •
Total 1999 Contracts $4,223,993 $ 539,975
c. Future potential of CMIS, Inc.
Since signing the marketing agreement with Global Election we
have exceed all our marketing projections for 1999. We have won
all but one system for which we have competed and have quickly
established a dominant position in the Voter Registration and
Election Management Technology Industry.
We are currently marketing to the following accounts:
State Governments
State of Alaska
State of Minnesota
State of New Mexico
State of Oregon
State of South Carolina
State of Virginia
Medium to Large Counties and Cities
Clark County Nevada
Kansas City Missouri
Platte County Missouri
St. Louis City Missouri
St Charles County Missouri
Erie County Pennsylvania
Marion County Florida
Stark County Ohio
Dona Anna County New Mexico
Jefferson County Alabama
Sedgwick County Kansas
Shawnee County Kansas
Huron County Ohio
Oregon County Oregon
McHenry County Illinois
Brevard County Florida
Lawrence County Ohio
Hamiliton County Tennessee
Harris County Texas
Cameron County Texas
Apache County Anzona
Larimer County Colorado
Arapahoe County Colorado
• •
International Opportunities
Mississauga Canada
County of Panama
Many county and state governments have limited their investment
in technology during the past several years to ensunng Y2K
compliance. Many industry analysis expect that state and local
governments will tum to the Windows NT, three-tier client -server
technology, developed by CMIS, once the Y2K crisis has been
avoided. The following conditions will also drive the demand to
upgrade Voter Registration and Election Management Technology:
• Redistricting and Reapportiment required after the release of
the 2000 Census Results in April 2001.
• Changing State and Local Laws to Encourage Voting such as:
• Early Voting
• Convenience Voting (Shopping Centers, etc.)
• Internet Voting
With the completion of a new facility CMIS, Inc. will be perfectly
poised to provide software, technology and services to a large
percentage of the 50 states, 3,300 domestic counties, and to
further explore international opportunities.
We conservatively project that revenues from our Voter
Registration and Elections Management Technology will remain in
the $3,000,000 to $6,000,000 range for the next three to five
years. In early 2001 we expect to begin development of other
Window NT, three-tier client -serve based technology to serve
state and local government. The revenue forecast does not
include revenues from non-voter based technology.
FAYETTEVA.LE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
•
To: Alett Little, Economic Development Director
From: Heather Woodruff, City Clerk
Date: March 27, 2000
Attached is a copy of the resolution endorsing Computer Management System for the Arkansas
Advantage Program for your records. The original will be microfilmed and filed with the City
Clerk.
2
•
• •
RESOLUTION NO. 32-00
A RESOLUTION OF THE CITY OF FAYETTEVILLE
CERTIFYING LOCAL GOVERNMENT ENDORSEMENT OF
COMPUTER MANAGEMENT INFORMATION SYSTEMS, INC.
TO PARTICIPATE IN THE ADVANTAGE ARKANSAS
PROGRAM (a/k/a THE ARKANSAS ENTERPRISE ZONE
PROGRAM- ACT 947 OF 1993).
WHEREAS, the local government must endorse a business to participate in the Advantage
Arkansas Program and benefit from the refunds/tax credits as provided in the Arkansas Enterprise
Zone Program Regulations of 1993; and
WHEREAS, the said endorsement must be made on specific form available from Arkansas
Department of Economic Development; and
WHEREAS, Computer Management Information Systems, Inc. located at 2927 N. Point
Circle, Suite 1, Fayetteville, Arkansas has sought to participate in the program and more specifically
has requested benefits accruing from construction of the specific facility; and
WHEREAS, Computer Management Information Systems, Inc. has agreed to furnish the
local government all necessary information for compliance.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FAYETTEVILLE, ARKANSAS*
Section 1. Computer Management Information Systems, Inc. is hereby endorsed by the
City of Fayetteville, Arkansas, for benefits from the refunds/tax credits as provided in the Arkansas
Enterprise Zone Program Regulations of 1993.
Section 2. The Department of Finance and Administration is hereby authorized to refund
local sales and use taxes to Computer Management Information Systems, Inc.
Section 3. This resolution shall take effect immediately.
PASSED AND APPROVED this 21° day of March , 2000.
APPROVED.
By: //GfC 441/14.9°'#°.
ATTEST:
By:
)atya t
eather Woodruff, City CI
Ffed Hanna, Mayor