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HomeMy WebLinkAbout270-18 RESOLUTIONc:' sArtrr F. Gll�q�x� a� SRA A114�'� 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 270-18 File Number: 2018-0665 FAYETTEVILLE CHAMBER OF COMMERCE: A RESOLUTION TO APPROVE THE FIRST TWO (2) YEAR RENEWAL CONTRACT WITH THE FAYETTEVILLE CHAMBER OF COMMERCE TO PROVIDE ECONOMIC DEVELOPMENT CONSULTING SERVICES IN THE AREAS OF BUSINESS RECRUITMENT, RETENTION, AND EXPANSION IN THE TOTAL AMOUNT OF $360,000.00 WHEREAS, the Fayetteville Chamber of Commerce was competitively selected by a City selection committee to provide economic development consulting services to the City of Fayetteville in the areas of business recruitment, retention, and expansion and an initial two-year contract was approved by the City Council by Resolution 185-16 on October 4, 2016, in the amount of $45,000.00 per quarter; and WHEREAS, since the inception of the contract, the Chamber of Commerce has conducted site location work and responded to requests for information and coordinated site visits with national and international businesses, and has served as the point of contact for the Arkansas Economic Development Commission; and WHEREAS, the Chamber's work over the past two years has led to dozens of new employers, a growth of the City's economic base to over 3,850 active businesses, and more than 2,000 new full-time jobs; and WHEREAS, the Chamber of Commerce and the City desire to extend the contract for an additional two years with significant changes to align the Chamber's services towards the Department of Economic Vitality's four key focuses - Business Retention/Attraction, Retail and Mixed -Use Recruitment, Workforce Development, and Growth Concept Oriented Development. Page 1 Printed on 12119118 Resolution 270-I8 File Number: 2018-0665 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign the attached First Renewal of Contract for Economic Development Consulting Services with the Fayetteville Chamber of Commerce to provide economic development consulting services to the City of Fayetteville in the areas of business recruitment, retention, and expansion in the total amount of $360,000.00. PASSED and APPROVED on 12/18/2018 Attest: f Sondra E. Smith, City Clerk Treasurer zca• ,•`-r f=AYETTEVILLE: ter, �� • • ... • '.'�� ,�� rr�Ulr ON Page 2 Printed on 12119118 City of Fayetteville, Arkansas Text File -- File Number: 2018-0665 Agenda Date: 12/18/2018 Version: 1 In Control: City Council Meeting Agenda Number: A. 21 FAYETTEVILLE CHAMBER OF COMMERCE: 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Status: Passed File Type: Resolution A RESOLUTION TO APPROVE THE FIRST TWO (2) YEAR RENEWAL CONTRACT WITH THE FAYETTEVILLE CHAMBER OF COMMERCE TO PROVIDE ECONOMIC DEVELOPMENT CONSULTING SERVICES IN THE AREAS OF BUSINESS RECRUITMENT, RETENTION, AND EXPANSION IN THE TOTAL AMOUNT OF $360,000.00 WHEREAS, the Fayetteville Chamber of Commerce was competitively selected by a City selection committee to provide economic development consulting services to the City of Fayetteville in the areas of business recruitment, retention, and expansion and an initial two-year contract was approved by the City Council by Resolution 185-16 on October 4, 2016, in the amount of $45,000.00 per quarter; and WHEREAS, since the inception of the contract, the Chamber of Commerce has conducted site location work and responded to requests for information and coordinated site visits with national and international businesses, and has served as the point of contact for the Arkansas Economic Development Commission; and WHEREAS, the Chamber's work over the past two years has led to dozens of new employers, a growth of the City's economic base to over 3,850 active businesses, and more than 2,000 new full-time jobs; and WHEREAS, the Chamber of Commerce and the City desire to extend the contract for an additional two years with significant changes to align the Chamber's services towards the Department of Economic Vitality's four key focuses - Business Retention/Attraction, Retail and Mixed -Use Recruitment, Workforce Development, and Growth Concept Oriented Development. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign the attached First Renewal of Contract for Economic Development Consulting Services with the Fayetteville Chamber of Commerce to provide economic development consulting services to the City of Fayetteville in the areas of business recruitment, retention, and expansion in the total amount of $360,000.00. City of Fayetteville, Arkansas Page 1 Printed on 1211912018 Devin Howland Submitted By City of Fayetteville Staff Review Form 2018-0665 Legistar File ID 12/18/2018 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 11/20/2018 ECONOMIC DEVELOPMENT (050) Submitted Date Division / Department Action Recommendation: ._......... A RESOLUTION TO APPROVE A CONTRACT RENEWAL WITH THE FAYETTEVILLE CHAMBER OF COMMERCE FOR ECONOMIC DEVELOPMENT CONSULTING SERVICES -BUSINESS RETENTION AND EXPANSION Budget Impact: 1010.050.0500-5315.00 General Fund Account Number N/A Project Number Budgeted Item? Yes Fund N/A Project Title Current Budget $ 256,500.00 Funds Obligated $ - Comments: Current Balance $ 256.snn nn Does item have a cost? Yes Item Cost $ 360,000.00 Budget Adjustment Attached? No Budget Adjustment Remaining Budget 3,500.00) V20180321 Purchase Order Number: 2016-0679 Previous Ordinance or Resolution # 185-16 Change Order Number: 2 Approval Date: Original Contract Number: 2016-0011 Comments: CITY OF FAYETTEVILLE x ARKANSAS MEETING OF DECEMBER 18 2018 TO: Mayor and City Council THRU: Don Marr, Chief of Staff FROM: Devin Howland, Director of Economic Vitality DATE: November 20, 2018 CITY COUNCIL MEMO SUBJECT: A RESOLUTION TO APPROVE A CONTRACT RENEWAL WITH THE FAYETTEVILLE CHAMBER OF COMMERCE FOR ECONOMIC DEVELOPMENT CONSULTING SERVICES -BUSINESS RETENTION AND EXPANSION RECOMMENDATION: Staff recommends the renewal of a two-year contract renewal with the Fayetteville Chamber of Commerce to provide economic development consulting services related to Business Retention and Expansion. BACKGROUND: The City issued RFP -16-05 on July 6, 2016 and received proposals on July 29th. The selection committee (including Council Member Adella Gray) recommended entering negotiations with the Fayetteville Chamber of Commerce to provide the requested services. On October 4, 2016 Resolution 185-16 was passed, authorizing a two-year contract with the Fayetteville Chamber of Commerce. Since the original contract began, two amendments have been added. The first amendment altered Exhibit A, calling for additional meetings with the Department of Economic Vitality and was signed on December 21, 2017. The second amendment extended the contract with Fayetteville Chamber of Commerce for three months, placing the new end date on December 31, 2018. The decision to extend the contracts places them on a calendar year cycle, allowing for more cohesive data collection. The original contract allows for three (3) additional two (2) year terms with approval of both parties, this is the first renewal option. DISCUSSION: The Fayetteville First Strategic Plan, passed unanimously by the Fayetteville City Council in May of 2016, identified business retention and expansion as a major component of the City's economic development efforts. Existing employers continue to expand in the City of Fayetteville, hundreds of millions of dollars have been invested over the past two years, hundreds of jobs have been created through expansion projects, and many have been saved through retention efforts on behalf of the Fayetteville Chamber of Commerce. Over the past two years, the Fayetteville Chamber of Commerce has served the City of Fayetteville's economic development contractor for business retention and expansion as well as the point of contact for the Arkansas Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Economic Development Commission. Their work over the past two years has led to dozens of new employers, our economic base growing to over 3,850 active businesses, and over 2,000 new full-time jobs. Since the inception of the contract the Chamber has conducted site location work and RFI response for numerous prospects and coordinated site visits with both national and international businesses. The companies they have assisted range in size and industry sector, and include Supply Pike (30M and 100 FTE), Our Pharma (31 M and 100FTE), two Pinnacle Foods Expansions, three Washington Regional expansions, Biotech Pharmacal expansion, numerous direct consultations, a major Tyson expansion, recruitment of Kimbel Mechanical Systems, recruitment assistance for HBO's True Detective (and implementation assistance), Rock Hill Studios, Keytronic's retention and Givingtons Retention. Pursuant to their contract requirement, the Fayetteville Chamber of Commerce attended ICSC's RECON with the City of Fayetteville, serving as a valuable resource as Fayetteville made its inaugural debut at the trade show. The contract has been revised significantly to align services towards the Department of Economic Vitality's four key focuses; Business Retention/Attraction, Retail and Mixed -Use Recruitment, Workforce Development, and Growth Concept Oriented Development. Notable changes include focusing the Business Retention and Expansion program to allow for the focus on specific industry sectors each quarter, requires the top 25 employers in Fayetteville be visited annually and ensures BRE site visits are conducted at a consistent tempo throughout the year. A new section calls for expanded attraction efforts and requires priority recruitment efforts towards our growth nodes annotated in the growth concept map. Workforce Development has been altered to obtain assistance with enhanced workforce development efforts such as enhanced student internships, teacher externships, on-the-job training, and promotion of apprenticeship programs. Performance metrics remain the same as the current contract and were updated through the first amendment of current contract. BUDGET/STAFF IMPACT: The proposed contract for a two-year period, with an option to renew (with City Council approval) for two additional two-year periods. The terns of the contract are included, and the amount of the contract is $180,000 per year. Attachments: Proposed Contract and Attachments Resolution 185-16 FIRST RENEWAL OF CONTRACT FOR ECONOMIC DEVELOPMENT CONSULTING SERVICES BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND THE FAYETTEVILLE CHAMBER OF COMMERCE WHEREAS, the City of Fayetteville, Arkansas wishes to contract for Economic Development Consulting Services, and; WHEREAS, the Fayetteville, Arkansas Chamber of Commerce wishes to provide certain Economic Development Consulting Services to the City of Fayetteville, Arkansas, and; WHEREAS, the Fayetteville, Arkansas Chamber of Commerce has been selected to perform Economic Development Consulting Services for the City of Fayetteville utilizing the competitive Request for Proposal selection process (via RFP 16-05, Economic Development Consulting Services — Business Retention and Expansion), and; WHEREAS, the City Council of Fayetteville, Arkansas and the Fayetteville, Arkansas Chamber of Commerce wish to extend the contract for Economic Development Consulting Services an additional two years as provided in RFP 16-05 and the original contract approved by Resolution No. 185-16. NOW THEREFORE: In consideration of the mutual promises contained in this Agreement and other good and valuable consideration, 1. This Agreement is made this day of ._, 2018 by and between the City of Fayetteville, Arkansas located at 113 W. Mountain, Fayetteville, Arkansas 72701 and the Fayetteville, Arkansas Chamber of Commerce located at 21 West Mountain Street, Suite 300, Fayetteville, Arkansas 72701. The terms and conditions set forth in this Agreement supersede and replace the terms and conditions of any prior contract or amendment for economic development consulting services between the parties Term: This Agreement, governing the first of three potential two-year extensions, shall commence on January 1, 2019, and shall end December 31, 2020. This contract may be canceled by either party with thirty days written notice. 3. Renewals: This agreement may only be renewed by approval of the City Council and with mutual agreement of the Chamber of Commerce. The City may exercise an option to renew the contract for two (2) additional two (2) year terms with approval of both parties. Economic Development Consulting Services Contract Page 1 of 11 4. Attachments: The Contract documents which comprise the contract between the City of Fayetteville and the Fayetteville Chamber of Commerce consist of this Contract and the following documents attached hereto, and made a part hereof: a.) Exhibit A - Revised Schedule of Deliverables and Performance Measures * The City of Fayetteville shall coordinate with the Fayetteville Chamber of Commerce for modifications to this schedule. Any modifications to Exhibit A shall not reduce the quality or quantity of the services to be provided pursuant to this contract, as determined by the Mayor or his/her Chief of Staff or his/her Director of Economic Vitality. Any modifications shall be agreed upon by both the City and Fayetteville Chamber of Commerce; however, any changes affecting price shall have prior approval by the Fayetteville City Council. In the event Exhibit A is revised and price is not modified, such revised document shall be provided to the City Council at the next regularly scheduled update. 4. Services to be Provided: During the terms of this Agreement, the Fayetteville Chamber of Commerce shall: Serve as the first point of contact as the City's contractor for Business Retention and Expansion services for economic development as defined in the Fayetteville First Economic Development Strategic Plan and maintain good relations with the Arkansas Economic Development Commission and other economic development partners locally, nationally and internationally Maintain clear and open communication with the City on all economic development services and activities provided under the scope of this contract; and the Chamber shall clearly articulate when communicating on behalf of the Chamber of Commerce versus City -contracted initiatives to create clear accountability and separation of City -contracted initiatives and Chamber of Commerce initiatives; Provide all deliverables and performance measures outlined in the attached Exhibit A 5. Fees and Expenses: The City of Fayetteville agrees the consulting fee shall be paid upon invoice as follows: Consultation Services shall be invoiced for each quarter in the amount of $45,000 per quarter. Total fees for consultation services shall not exceed $360,000, from the date of contract. The Fayetteville Chamber of Commerce shall track, log and report hours and expenses directly related to this Agreement along with invoice for payment for each month. Invoices shall be itemized. Payment of the above-described fees shall be contingent upon annual budget approval by the Fayetteville City Council. If funds are not appropriated for any year this Agreement shall be terminated at the end of the then current term. If funds appropriated are less than the full amount contemplated by this Agreement then the parties shall agree upon an amended Revised Schedule of Deliverables and Performance Measures (Exhibit A). In Economic Development Consulting Services Contract Page 2 of 11 the event the parties are unable to reach an agreement on an amended schedule, then the Agreement shall be terminated at the end of current month. 6. Notices: Any notice required to be given under this Agreement to either party to the other shall be sufficient if addressed and mailed, certified mail, postage paid, delivery, fax (receipt confirmed), or overnight courier. 7. Applicable taw: This Agreement shall be governed by and construed in accord with the laws of the State of Arkansas. 8. Entire Agreement: This Agreement sets forth the entire agreement and understanding between the parties on the subject matter of this Agreement. Neither party shall be bound by any conditions, definitions, representations or warranties with respect to the subject matter of this Agreement other than those as expressly provided herein. 9. Amendments and Waivers: Changes, modifications, or amendments in cost or fees to this contract shall not be allowed without a prior formal contract amendment approved by the Mayor and the City Council in advance of the change in cost or fees. No modification of this Agreement shall be binding unless made in writing and executed by both parties. No waiver by either party or any breach or obligation of the other party under this Agreement shall constitute a waiver of any other prior or subsequent breach or obligation. 10. Performance Measures: The Fayetteville Chamber of Commerce shall provide the deliverables as outlined in the attached Exhibit A, which serves to implement the adopted Fayetteville First Economic Development Strategic Plan. Performance measures are included for the services and will be used to evaluate the work performed throughout the entire term of the contract. 11. Contract Administration: The Mayor or his/her Chief of Staff or his/her Director of Economic Vitality shall be the Contract Administrator for this contract. The Fayetteville Chamber of Commerce President and CEO or his/her Designated Representative shall be the primary contact for all matters pertaining to this contract. While it is understood that many facts pertaining to projects must be held in the strictest confidence, the Fayetteville Chamber of Commerce President and CEO will insure that the Mayor and the Director of Economic Vitality are kept abreast of details and progress made pertaining to Economic Development prospects considering development in Fayetteville to the greatest extent possible. 12. Freedom of information Act: City contracts and documents prepared while performing work pursuant to this contract may be subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City of Fayetteville or to the Chamber of Commerce the parties shall do everything possible, in a prompt and timely manner, to determine whether the requested records must be disclosed as required by the Arkansas Freedom of Information Act (A.C.A. §25-19-101 et. seq.), or Economic Development Consulting Services Contract Page 3 of 11 whether the records are exempt pursuant to A.C.A. § 25-19-105(b), A.C.A. § 14-176- 105(b)(1) or other applicable state or federal law. Records required to be disclosed shall be made available for inspection and copying. Only legally authorized photocopying costs pursuant to the Freedom of Information Act may be assessed for this compliance.. Economic Development Consulting Services Contract Page 4 of 11 IN WITNESS WHEREOF, the parties have executed this Agreement. Fayetteville Cj*rrpoer of Commerce *4M By: Date: 4 1Stven Clar , President and CEO Witness: Date: The City of ayetteville, Arkansas I neld Jordan: Mavdr Attest: Date: /,z ".�z l —If �L �p�, f-L� Date: Sondra E. Smith, City Clerk/Treasurer 1������RK•1 7�E� ��r�i _U• i AYE:TTE:VILLE: JI Economic Development Consulting Services Contract Page 5 of 11 Exhibit "A" Contract for Economic Development Services - Business Retention and Expansion REVISED Schedule of Deliverables and Performance Measures As outlined herein, the Chamber of Commerce shall provide the following services, more generally referred to as Business Retention and Expansion or BR&E services: One. Implement a robust business retention and expansion (BR&E) program; Two. Foster new business growth in Fayetteville's targeted industry sectors; Three. Assess and manage property availability, data and building needs for targeted business sectors; Four. Support the City's Retail, Restaurant, and Mixed -Use Recruitment and Development Efforts; Five. Support Workforce Development efforts to ensure workforce and training needs can be met through local and regional collaboration; Six. Support targeted, focused, block level growth -concept oriented development that leads to an outstanding quality of life throughout Fayetteville Seven. Collaborate with the City for communication with the public Eight. Report Outcomes One: Implement a robust business retention and Vansion (BR&Elprflo - in 1. At a minimum the following deliverables shall be included for each of the action items identified in the BR&E program: a. Goals for the number of Fayetteville businesses to be visited each year within the identified targeted business sectors, including small businesses, coordinating closely with the Northwest Arkansas Council so as to not duplicate regional economic development services and business visits related to employer retention and expansion, workforce development and education efforts. i. The city expects at least 100 Fayetteville for businesses to be visited annually through the contract period; ii. Every year, Fayetteville's top 25 employers shall be visited; iii. 25 BR&E site visits shall be conducted each quarter of the calendar year; iv. The Department of Economic Vitality may ask for focuses on specific industry sectors during each quarter. b. The use of a surveyor questionnaire consistent with the Northwest Arkansas Council, to be used during interviews with existing Fayetteville businesses with results tabulated in a regularly updated and shared reporting document with the Department of Economic Vitality; Economic Development Consulting Services Contract Page 6 of 11 c. Business needs or challenges (red flags) that are identified during the visit and or survey shall be reported to the Director of Economic Vitality immediately; d. A spreadsheet shared with the Department of Economic Vitality, for timely tracking of visits, employer input, business challenges or needs, and other data identified as needed for tracking purposes shall be utilized; e. A summary report of the accomplishments of the calendar year, including the information above, as well as the number of new expansion projects, jobs created or saved, average wages (when disclosed) and investment related to the program(s); f. Demonstrate efforts to acquire and track the following: L An increased number of net new businesses established in the city over time; ii. An increase in annual sales from businesses located in the city over time; iii. An increase in the percentage of residents employed overtime; iv. An increase in the number of net new jobs overtime; v. A decrease in the unemployment rate of residents over time; vi. Various business sector employee wages, and how they increase or decrease as jobs are gained/lost. vii. An increase in the number of inquiries from prospective companies over time; and viii. An increase in net new retail (NAICS 44-45) and accommodation (NAICS 72) establishments overtime. 2. Legacy Industry: Maintain an up-to-date directory of legacy industries (including but not limited to manufacturers) within the City and share it with the Department of Economic Vitality. Within the BR&E program ensure questions and data is collected designed to meet this business sector's needs, exploring questions related to facility retention and expansion, new equipment investment, workforce attraction and training, and physical infrastructure needs such as rail, broadband, transportation or utilities. 3. Regional Headquarters: Maintain an up-to-date directory of businesses headquartered in Fayetteville, whether they maintain a home office or a regional headquarters within the City and share it with the Department of Economic Vitality. Two: Foster new lousiness growth in Fayetteville's targeted industry sectors 1. Represent the City of Fayetteville as the primary point of contact for the Arkansas Economic Development Commission (AEDC) coordinating with state officials to promote Fayetteville as an outstanding City for businesses to locate. Economic Development Consulting Services Contract Page 7 of 11 2. Conduct site location work and request for information response for prospective employers, working with the Department of Economic Vitality, Northwest Arkansas Council, and AEDC to encourage prospective companies to locate in Fayetteville. 3. Maintain a bright line of communication with the Mayor and Director of Economic Vitality concerning projects which stem from the Arkansas Economic Development Commission, while it is understood that many facts pertaining to projects must be held in the strictest confidence, the Fayetteville Chamber of Commerce President and CEO will insure that the Mayor and the Director of Economic Vitality are kept abreast of details and progress made pertaining to Economic Development prospects considering development in Fayetteville to the greatest extent possible. Three: Assess and manage property, building needs of targeted business sectors Fayetteville First identifies five targeted business sectors: Corporate Services, Entrepreneurs and Innovators, Legacy Manufactures, Retail and Specialized Technologies. Each of these target sectors will have varying needs, and some will have similarities. 1. Determine and promote available properties. Manage the City's site selection software and ensure that the AEDC sites'and buildings database is kept updated accordingly. 2. Assess site and building needs of targeted business sectors. Assess the potential site and building needs of each of the targeted sectors, determine the need to identify additional sites and encourage the development of appropriate property in the future. a. Work with the Department of Economic Vitality to identify key sites which could serve as employment centers in conjunction with the City's Growth Concept Map. 3. Identify potential commercial properties. Incoordination with the Department of Economic Vitality, assist the Department of Economic Vitality with site selection for prospective retail, restaurant, and mixed-use developments. Four: Support the CipLs Retail,._Restaurant, and Mixed -Use Recruitment and Develolament Efforts 1. Attend the designated International Council of Shopping Centers (ICSQ national and/or Regional conventions and participate with the City of Fayetteville representatives and regional economic development efforts at the National and Regional ICSC Show. Coordinate with the Department of Economic Vitality to determine who should attend the ICSC convention or an applicable regional event. All marketing and communications around the events shall be coordinated with the Department of Economic Vitality and the City's Marketing and Communications team. Economic Development Consulting Services Contract Page 8 of 11 Five: Support Workforce Development efforts to ensure workforce and training needs can be met through local and regional collaboration Understand existing industry and targeted business sector needs. Review and participate in workforce analysis studies conducted for the region and the City to gain an understanding of the workforce availability related to the occupations required of the targeted business sectors, communicating areas of concern and assisting the City of Fayetteville realize the goals in the Fayetteville Workforce Development Plan. 2. Support, engage and connect regional educational and local industry leadership. Coordinate with the Northwest Arkansas Council and the Department of Economic Vitality to participate in discussions with local and regional institutions of higher education, Fayetteville public school career and technical education program leaders, as well as local industry and targeted sectors, and determine whether the workforce and training needs of the identified target markets can be met: a. Support relationships with educational institutions and employers to expand skilled trade programs and training and determine possible new program development in the future to meet the needs of the targeted business sectors and existing business and industry. b. Work with the Department of Economic Vitality to connect industry and education through innovative strategies such as student internships, on-the-job training opportunities, apprenticeship programs, teacher externships, industry tours for educators, and other strategies outlined in the Fayetteville Workforce Development Plan. c. Advocate and support the expansion of skilled trade programs and apprenticeship programs through local industry and educational partnerships. 3. Provide Innovative workforce training opportunities. Provide training and job skill development opportunities in Fayetteville through the support and utilization of the Fayetteville Chamber of Commerce NWA Fab Lab and the Fayetteville Chamber of Commerce Robotics Training Center located in the Fayetteville Innovation District. Six: Support targeted, focused, block level development that leads to an outstandinEt{uality of life throughout Fayetteville 1. Support and promote targeted redevelopment and development opportunities. To develop great live, work, and play areas throughout the City, assist the Department of Economic Development Consulting Services Contract Page 9 of 11 Economic Vitality identify key parcels and sites prime for development or redevelopment within the tiers of the Fayetteville growth concept map, as well as key areas such as Downtown Fayetteville and the 71/13 Corridor. Work in conjunction with the Department of Economic Development to identify, attract, and secure businesses, and or developments which will promote catalytic change to the areas identified in the Growth Concept Map: a. Promote developments which assist the City with realizing it's land use goals outlined in the City Land Use Plan, Growth Concept Map and the 71B Corridor Plan. b. Work to promote, attract, and secure smart -growth develops such as transit oriented, mixed-use, infill, and trail -oriented development. c. Site work with prospective business will prioritize tier 1,2, and 3 growth nodes of the Growth Concept Map as well as the 71/13 Corridor. Seven: Collaborate with the Cit for Communication with the Public 1. Communications pertaining to the implementation of the Fayetteville First Plan and the implementation, outputs, or outcomes of this contract will be communicated on the City's Economic Development website using the City's branding and marketing. Communication and engagement with the business community as it relates to measures outlined in the contract will be done through the City's website, which is managed by the Department of Economic Vitality. Promotion of the measures outlined in the contract will be conducted through the City's social media channels. All performance measures and reports will be updated on a monthly basis via the City's web site by the Department of Economic Vitality. 2. Communications from the Fayetteville Chamber of Commerce related to economic development initiatives within the scope of this contract, major decisions, announcements, and/or development matters, and public -facing activities should be coordinated with the Mayor's office and the Department of Economic Vitality. This includes statements at City Council meetings, Agenda Sessions, public presentations, press conferences, new business announcements, etc. Eight: Reports and Presentations 1. Reporting results and milestones will be done as deliverables are met in the implementation of the Fayetteville First Economic Development Strategic Plan and will be formatted to fit within the City's Economic Development branding on the city web site. The City's internal Economic Development team will meet regularly with the Chamber of Commerce (at a minimum on a monthly basis) to discuss the status of deliverables. The Mayor and/or City Council may request periodic updates and public engagement for citizens to be kept informed of the city's economic development goals. The Fayetteville Chamber of Commerce will be expected to attend quarterly "collaboration meetings" with the City of Fayetteville and Entrepreneurship and Economic Development Consulting Services Contract Page 10 of 11 Innovation contractor. The Fayetteville Chamber of Commerce will attend weekly conference calls with the Director of Economic Vitality. 2. The Chamber of Commerce shall provide written reports and prepare a brief presentation to the Mayor and City Council on at least a bi-annual basis. Reports and presentations should outline the tasks accomplished, outcomes achieved and include statistics for each performance measure outlined herein. Bi -annual presentations to the Mayor and City Council shall only include items pertaining to the scope of the contract and the delivery of the items outlined in Exhibit A. Bi -annual presentations will be held in June and December of each year. 3. A schedule for completion of outlined performance measures and a monthly status report shall be submitted for each month of the contract and include only items outlined in the scope of the contract and the delivery of the items outlined in Exhibit A, delivered during regular monthly meetings with the City's Director of Economic Vitality. Economic Development Consulting Services Contract Page 11 of 11 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 185-16 File Number: 2016-0405 FAYETTEVILLE CHAMBER OF COMMERCE ECONOMIC DEVELOPMENT CONSULTING SERVICES: A RESOLUTION TO APPROVE A TWO (2) YEAR CONTRACT WITH THE FAYETTEVILLE CHAMBER OF COMMERCE TO PROVIDE ECONOMIC DEVELOPMENT CONSULTING SERVICES IN THE AREAS OF BUSINESS RECRUITMENT, RETENTION, AND EXPANSION IN THE AMOUNT OF $360,000.00, AND TO APPROVE A BUDGET ADJUSTMENT. WHEREAS, the Fayetteville Chamber of Commerce was competitively selected by a City selection committee to provide economic development consulting services to the City of Fayetteville in the areas of business recruitment, retention, and expansion in the amount of $45,000.00 per quarter. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 : That the City Council of the City of Fayetteville, Arkansas hereby approves the attached two (2) year contract with the Fayetteville Chamber of Commerce to provide economic development consulting services to the City of Fayetteville in the areas of business recruitment, retention, and expansion in the amount of $360,000.00. Seetinn_._?.: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. A1111 I, PASSED and APPROVED on 10/4/2016 Approved: Li('i ld J rdaii, Ma f Page 1 i�w•G,�Y Or •'�'�� FVfL11: Attest: r r h •�'�� . I • q� c�P � Z�. Yp•. kAO Sondra E. Smith, City Clerk Treasurer Printed on 1015116 City of Fayetteville, Arkansas 113 West Mmintein Street Fayetteville, AR 72701 _ -.' , (479) 575-8323 Text File File Number: 2016-0405 Agenda Date: 10/4/2016 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: C. 8. FAYETTEVILLE CHAMBER OF COMMERCE ECONOMIC DEVELOPMENT CONSULTING SERVICES: A RESOLUTION TO APPROVE A TWO (2) YEAR CONTRACT WITH THE FAYETTEVILLE CHAMBER OF COMMERCE TO PROVIDE ECONOMIC DEVELOPMENT CONSULTING SERVICES IN THE AREAS OF BUSINESS RECRUITMENT, RETENTION, AND EXPANSION IN THE AMOUNT OF $360,000.00, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the Fayetteville Chamber of Commerce was competitively selected by a City selection committee to provide economic development Consulting services to the City of Fayetteville in the areas of business recruitment, retention, and expansion in the amount of $45,000.00 per quarter. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: ection 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the attached two (2) year contract with the Fayetteville Chamber of Commerce to provide economic development consulting services to the City of Fayetteville in the areas of business recruitment, retention, and expansion in the amount of $360,000.00. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. City of Fayetteville, Arkansas Page i Printed on 101512018 Jeremy Pate Submitted By City of Fayetteville Staff Review Form 2016-0405 legistar File ID 10/4/2016 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 9/12/2016 Development Services / Development Services Department Submitted Date Division / Department Action Recommendation: A resolution to approve a.contract with the Fayetteville Chamber of Commerce for Economic Development Services - Business Recruitment, Retention and Expansion, and approving a budget adjustment Budget Impact: 1010.050.0500-5315.00 Account Number Project Number Budgeted Item? No Current Budget Funds Obligated Does item have a cost? Yes Budget Adjustment Attached? Yes Previous Ordinance or Resolution # Original Contract Number: Comments: Current Balance Item Cost Budget Adjustment Remaining Budget General Fund Fund Contract Services Project Title Approval Date: 360,000.00 360,000.00 CITY OF FayP�T1. A—lc RKANSAS MEETING OF OCTOBER 04, 2016 TO: Mayor Lioneld Jordan Fayetteville City Council THRU: Don Marr, Chief of Staff CITY COUNCIL AGENDA MEMO FROM: Jeremy Pate, Development Services Director DATE: September 12, 2016 SUBJECT: RFP 16-05 Economic Development Contract for Services — Business Recruitment, Retention and Expansion RECOMMENDATION: Staff recommends the selection of and a two-year contract with the Fayetteville Chamber of Commerce to provide economic development consulting services related to Business Recruitment, Retention and Expansion. BACKGROUND: In May of this year, the Council unanimously, adopted Fayetteville First, the City's newly updated Economic Development Strategic Plan. This plan engaged over 1600 citizens and businesses to structure the City's economic future. Fayetteville First gives policy direction for the City to achieve its stated goals, along with an implementation plan as a roadmap. The Implementation Plan is a fluid, dynamic document placing more tangibles timeframes and action items to be accomplished over the next five years. Establishing the economic delivery service model was identified as one of our first steps, and staff is following the adopted strategy of a three -pronged approach: 1) Contract Business Recruitment, Retention and Expansion Services, 2) Contract Entrepreneurship and Innovation Services and 3) Create an internal Economic Development program to provide a city contact and to lead efforts in coordinating all efforts related to recruiting, retaining and supporting business, industry, and startup efforts in the City. The City issued RFP 16-05 on July 06 and received proposals on July 29. After interviewing the selected candidate, the selection committee (including Council Member Adella Gray) recommended entering into negotiations with the Fayetteville Chamber of Commerce to provide the requested services. DISCUSSION: A critical component of Fayetteville's economic development future was confirmed with the Fayetteville First Strategic Plan, that we must have a robust retention and expansion program focused on legacy industry, regional headquarters and startups; that in the retail sector, gaps exists in Fayetteville that need to be inventoried, analyzed and for which a focused strategy developed; that workforce training and education remains a high priority and need for the City and Mailing Address: 113 W. Mountain Street www.fayetteville.-ar.gov Fayetteville, AR 72701 region; and that future development opportunities should create an environment that attracts the new millennial workforce and business owner, given the diversity of the workforce today. Given these tasks, the Chamber of Commerce brings a wealth of experience and relationships in the City and region, having performed the City's economic development services since 2009 and having conducted business in Fayetteville for over 127 years. This new contract continues some of those same functions, while focusing efforts identified in Fayetteville First. The City continues to have a need for a point of contact with AEDC; maintaining a database of property, data and building availability for targeted business sectors; a proven method of using survey instruments and interviews to gauge the needs and hurdles for legacy industries, businesses that are headquartered here, and startup/entrepreneurial companies that have growth, location or other challenges; and a coordinated central point for workforce and training needs for all business sectors. In addition, we have asked the Chamber to focus efforts more into identifying gaps that need attention, supporting programs and initiatives that improve the outstanding lifestyle quality, and fostering development opportunities consistent with the City's adopted goals and policies. BUDGET/STAFF IMPACT: The proposed contract is for a two-year period, with an option to renew (with City Council approval) for three additional two-year periods. The terms of the contract are included, and the amount of the contract is $180,000 per year. Staff proposes a budget adjustment to cover the contract term of two years from the use of Fund Balance. Attachments: Proposed Contract and Attachments Budget Adjustment CONTRACT FOR ECONOMIC DEVELOPMENT CONSULTING SERVICES BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND THE FAYETTEVILLE CHAMBER OF COMMERCE WHEREAS, the City of Fayetteville, Arkansas wishes to contract for Economic Development Consulting Services, and; WHEREAS, the Fayetteville, Arkansas Chamber of Commerce wishes to provide certain Economic Development Consulting Services to the City of Fayetteville, Arkansas, and; WHEREAS, the Fayetteville, Arkansas Chamber of Commerce has been selected to perform Economic Development Consulting Services for the City of Fayetteville utilizing the competitive Request for Proposal selection process (via RFP 16-05, Economic Development Consulting Services — Business Retention and Expansion), and; WHEREAS, the City Council of Fayetteville, Arkansas has approved a contract for Economic Development Consulting Services with the Fayetteville, Arkansas Chamber of Commerce, NOW THEREFORE: In consideration of the mutual promises contained in this Agreement and other good and valuable consideration, I. Agreement is made this—Ailday of , 2016 by and between the City of Fayetteville, Arkansas located at 113 W. Mountain, Fayetteville, Arkansas 72701 and the Fayetteville, Arkansas Chamber of Commerce located at 21 West Mountain Street, Suite 300, Fayetteville, Arkansas 72701. Term: This Agreement shall be for a two year period, for a term ending September 30, 2018. This contract may be canceled by either party with thirty days written notice. 2. Renewals_ This agreement may only be renewed by approval of the City Council and with mutual agreement of the Chamber of Commerce. The City may exercise an option to renew the contract for three (3) additional two (2) year terms with approval of both parties. 3. Attachments: The Contract documents which comprise the contract between the City of Fayetteville and the Fayetteville Chamber of Commerce consist of this Contract and the following documents attached hereto, and made a part hereof: Economic Development Consulting Services Contract Page 1 of 4 a.) Exhibit A - Schedule Detail for Deliverables and Performance Measures * The City of Fayetteville shall coordinate with the Fayetteville Chamber of Commerce for modifications to this schedule. Any modifications to Exhibit A shall not reduce the quality or quantity, of the services to be provided pursuant to this contract, as determined by the Mayor or his/her designee. Any modifications shall be agreed upon by both the City and Fayetteville Chamber of Commerce, however, any changes affecting price shall have prior approval by the Fayetteville City Council. In the event Exhibit A is revised and price is not modified, such revised document shall be provided to the City Council at the next regularly scheduled update. 4. Services to be Provided_ During the terms of this Agreement, the Fayetteville Chamber of Commerce shall: Serve as the first point of contact as the City's contractor for Business Retention and Expansion: services for economic development as defined in the Fayetteville First Economic Development Strategic Plan and maintain good relations with the Arkansas Economic Development Commission and other economic development partners locally, nationally and internationally; ■ Maintain clear and open communication with the City on all economic development services and activities provided under the scope of this contract; and clearly articulate when communicating on behalf of the Chamber of Commerce versus City - contracted initiatives to create clear accountability; a Provide all deliverables and performance measures outlined in the attached Exhibit A 5. Fees and Expenses: The City of Fayetteville agrees the consulting fee shall be paid upon invoice as follows: Consultation Services shall be invoiced for each quarter in the amount of $45,000 per quarter. Total fees for consultation services shall not exceed $360,000, from the date of contract. The Fayetteville Chamber of Commerce shall track, log and report hours and expenses directly related to this Agreement along with invoice for payment for each month. Invoices shall be itemized. 6. Notices: Any notice required to be given under this Agreement to either party to the other shall be sufficient if addressed and mailed, certified mail, postage paid, delivery, fax (receipt confirmed), or overnight courier. 7. Applicable taw: This Agreement shall be governed by and construed in accord with the laws of the State of Arkansas. 8. Entire Agreement: This Agreement sets forth the entire agreement and understanding between the parties on the subject matter of this Agreement. Neither party shall be bound by any conditions, definitions, representations or warranties with Economic Development Consulting Services Contract Page 2 of 4 respect to the subject matter of this Agreement other than those as expressly provided herein. Amendments and_Wavers: Changes, modifications, or amendments in cost or fees to this contract, shall not be allowed without a prior formal contract amendment approved by the Mayor and the City Council in advance of the change in cost or fees. No modification of this Agreement shall be binding unless made in writing and executed by both parties. No waiver by either party or any breach or obligation of the other party under this Agreement shall constitute a waiver of any other prior or subsequent breach or obligation. 10. Performance Measures: The Fayetteville Chamber of Commerce shall provide the deliverables as outlined in the attached Exhibit A, which serves to implement the adopted Fayetteville First Economic Development Strategic Plan. Performance measures are included for each item and will be used to evaluate the work performed throughout the entire term of the contract. 11. Contract Administration: The Mayor or his/her Designated Representative shall be the Contract Administrator for this contract. The Fayetteville Chamber of Commerce President and CEO or his/her Designated Representative shall be the primary contact for all matters pertaining to thi's contract. While it is understood that many facts pertaining to projects must be held in the strictest confidence, the Fayetteville Chamber of Commerce President and CEO will insure that the Mayor is kept abreast of details and progress made pertaining to Economic Development prospects considering development in Fayetteville to the greatest extent possible. 12. Freedom of Information Act: City contracts and documents prepared while performing city contractual work are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is. presented to the City of Fayetteville, the Fayetteville Chamber of Commerce will do everything possible to provide the documents In a prompt and: timely manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. §25-19-101 et, seq.), exempting those records that, "if disclosed would give advantage to competitors or bidders," as described in Section (b)(9)(A) Only legally authorized photocopying costs pursuant to the FOIA may be assessed for this compliance. Economic Development Consulting Services Contract Page 3 of 4 IN WITNESS WHEREOF, the parties have executed this Agreement. Fayetteville Chamber f Commerce By: Date: J. StOeh Clark, Are Ident and CEO Witness: The City of Attest: — L014� C5- zt_y�- /' -_ Sondra E. Smith, City Clerk/Treasurer Economic Development Consulting Services Contract Page 4 of 4 Date: Data: 10 " — " Date: 167-7d 2 a1 : FAYETTEVILLE TON 111111110. Exhibit "A" Contract for Economic Development Services - Business Retention and Expansion Schedule of Deliverables and: Performance Measures As outlined herein, the Chamber of Commerce shall provide the following services, more generally referred to as Business Retention and Expansion or BR&E services: One. Create a robust retention and expansion program for the business community, with a more focused strategy for the target sectors of legacy industry, regional headquarters and startup/entrepreneurial businesses; Two. Determine property availability, data and building needs for targeted business sectors; Three. Develop a focused retail development strategy based on a thorough inventory and analysis of the city's existing retail base and gaps; Four. Coordinate with NWA Council and others to ensure workforce and training needs can be met, with a thorough understanding of existing and future industry and targeted sector needs; coordinate with area educational providers and business sectors to ensure appropriate skilled trade programs and training are available; Five. Support programs and initiatives that improve the outstanding lifestyle quality in Fayetteville. Promote, foster, and seek development opportunities that help create an environment and amenities. that attract the new millennial worker and/or business owners. Six. Collaborate with the City for communication with the public Seven. Report Outcomes Dne: Create a robust business retention and expansion (BR&Ej program 1. At a minimum the following deliverables shall be included for each of the action items identified in the BR&E program: a. Goals for the number of businesses to be visited each year within the identified business sectors, coordinating closely with the Northwest Arkansas Council so as to not duplicate regional economic development services and business visits related to employer retention and expansion, workforce development and education efforts. The city expects at least 100 businesses to be visited through the contract period, based on employment numbers, sales impact, relationship to target sectors, or other criteria. b. The development of a survey or questionnaire to be used during interviews with existing businesses with results tabulated in a regularly updated and shared reporting document c. The development of a process for addressing any business needs or challenges that were identified during the visit and survey; d. Use of a shared spreadsheet for timely tracking of visits, employer input, business challenges or needs, and other data identified as needed for tracking purposes; e. A summary report of the accomplishments of the program that year, including the information above, as well as the number of new expansion projects, jobs created or saved, average wages (when disclosed) and investment related to the program(s); f. Demonstrate efforts to acquire and track the following: I. An increased number of businesses established in the city over time; ii. An increase in annual sales from businesses located in the city over time; W. An increase In the percentage of residents employed over time; iv. A decrease in the unemployment rate of residents over time; and v. Various business sector employee wages, and how they increase or decrease as jobs are gained/lost. 2. Legacy Industry: Develop and maintain an up-to-date directory of legacy industries (including but not limited to manufacturers) within the City. Develop a BR&E program with questions and data designed to meet this business sector's needs, exploring questions related to facility retention and expansion, new equipment investment, workforce attraction and training, and physical infrastructure needs such as rail, broadband, transportation or utilities. 3. Regional Headquarters: Develop and maintain an up-to-date directory of businesses headquartered in Fayetteville, whether they maintain a home office or a regional headquarters within the City. Develop a questionnaire to explore the corporate services sector, including healthcare, to develop good working relationships with local management teams and to Identify and establish relationships with parent headquarters outside of Fayetteville when deemed valuable. 4. Start-up/Entrepreneurial Businesses: Develop a BR&E program for interviewing and gathering data for the start-up/entrepreneurial business sector. Customize questions tc understand how the City can best support the creation and sustaining of start=up companies created in Fayetteville, coordinating closely with other City -initiated entrepreneurial efforts. Support the advertising of appropriate seminars or training for Fayetteville or NWA in coordination with other City -initiated entrepreneurial efforts. Two: Assess and meet-pror2erty, buildin and data needs of tar eted business sectors Fayetteville First identifies five targeted business sectors: Corporate Services, Entrepreneurs and Innovators, Legacy Manufactures, Retail and Specialized Technologies. Each of these target sectors will have varying needs, and some will have similarities. 1. Determine available properties. Create a comprehensive inventory of all sites and buildings that are available for potential development and ensure that the AEDC sites and buildings database are kept updated accordingly. 2. Assess site and building needs of targeted business sectors. Assess the potential site, building, and data needs of each of the targeted sectors, determine the need to identify additional sites and encourage the development of appropriate property in the future. Consideration must be given to match a company's requirements to the types of service available, which shall be assessed using measurable criteria through the BR&E surveys. Three: Develop a focused retail devela meet strate 1. Conduct a thorough inventory and analysis of Fayetteville's existing retail base and gaps. Working with the Northwest Arkansas Council and/or others, identify and inventory the existing retail base and gaps in the city. 2. Examine local and regional demographic and retail trends. Demonstrate a clear understanding of the demographics of the city and region (to include Fort Smith as well as Northwest Arkansas), evaluating typical factors considered by the retail sector in its location decisions, which often include population, population growth, educational attainment and income. A retail infographic deliverable, coordinated with the City's Communications and Marketing team, shall reflect the results of this analysis and be used to market Fayetteville and the region to potential retailers and retail developers, with the goal of filling identified gaps. Identify potential commercial properties. Identify potential commercial properties, large to small, to be mapped and marketed to potential retailers and retail developers, where appropriate as identified through the retail analysis. Potential redevelopment sites that may be appropriate for retail shall also be identified and catalogued, particularly in targeted redevelopment areas identified by the City. 4. Identify potential retail targets. Based on the outcome of the retail base and gap analysis, as well as the commercial property inventory, identify potential specialty retailers to focus marketing efforts. 5. Attend the designated International Council of Shopping Centers (ICSC) national and/or Regional conventions and participate with the City of Fayetteville representatives and regional economic development efforts at the National and Regional ICSC Show. Coordinate with the Mayor's designated staff to determine who should attend the ICSC convention or an applicable regional event, arrange for interviews, and coordinate with the City's Marketing and Communications team to provide marketing or information materials. Four. Ensure Workforce and Trai n ing needs can be met 1. Understand existing industry and targeted business sector needs. Review and participate in workforce analysis studies conducting for the region to gain an understanding of the workforce availability related to the occupations required of the targeted business sectors, potentially partnering with the NWA Council on this initiative. 2. Research and conduct a survey of regional higher educational institutions. Develop an understanding of enrollment, degrees offered and graduates of regional institutions of higher education that may serve Fayetteville. 3. Convene regional educational leadership. Coordinate with the Northwest Arkansas Council to participate in discussions with local institutions of higher education, public school career and technical education program leaders, as well as local industry and targeted sectors, and determine whether the workforce and training needs of the identified target markets can be met. Work with these institutions to expand skilled trade programs and training, and determine possible new program development in the future to meet the needs of the targeted business sectors and existing business and industry. Once established, create and measure performance standards to fill gaps in the workforce and training needed. Five_ Sup op rt initiatives and prgrams that continue to improve the outstanding lifestyle quality_n Fayetteville 1. Explore redevelopment opportunities. During the stakeholder engagement process, many mentioned that they would like to see redevelopment along 71B (College Avenue and South School Avenue). In line with the CityPlan 2030 goals to prioritize infill over sprawl, to accommodate growth, and to bring more people to live, shop and play along Fayetteville's original Main Street, redevelopment of 71B is important for the city and should include improvement in walkability, new retail, residential and business development. Initiate a process to create immediate, short- and long-term priorities to explore and encourage redevelopment opportunities along 7113, as well as other areas of the city that should be identified as priorities for redevelopment. 2. Attract and retain the workforce of today and tomorrow. With the presence of the U of A and the lifestyle quality the city offers, Fayetteville should be a prime location for the millennial population, as well as the future Generatlon Z, and attracting and retaining that population must be a focus related to talent. Maintaining and enhancing an authentic culture for its residents and student population to remain in the city requires coordination in many of the identified focus areas, Walkable neighborhoods with commercial areas, including urban mixed-use developments, diversity, transportation alternatives and amenities like arts, culture and restaurant choices appear in numerous studies identifying where mlllennials want to be. Care for the environment and the desire to live in communities that practice sustainable development are also prevalent. The Chamber of Commerce will collaborate with and support the City and other City -led entrepreneurial efforts in the creation of a millennial advisory panel that can recommend policies, education and development practices that provide the best quality of life amenities and environment for this diverse population, 3. Promote, foster, and seek development opportunities that help create an environment and amenities that attract the new millennial worker and/or business owners. Work with the development community and City to explore initiatives meeting these stated goals. Six: Collaborate_ with the City for; Communication with the Public 1. The City's Economic Development web site will be used to communicate the implementation of the Fayetteville First plan, using the City's branding and marketing. All communication and engagement with the business community via surveys and questionnaires will be done from a link within the City's Economic Development web site pages and will be promoted on the City's social media channels via coordination with the City's Communications and Marketing Team. All performance measures and reports will be updated on a regular basis via the City's web site. The Chamber of Commerce will work with the City's Communications and Marketing Team to ensure that the deliverables from this contract remain up to date on the City's Economic Development web site. Responses to requests for information and updates shall be timely and within reason. 2. Communications from the Chamber of Commerce related to economic development initiatives within the scope of this contract, major decisions and/or development matters, and public -facing activities should be coordinated with the Mayor's office or his assigned staff. This includes statements at City Council meetings, Agenda Sessions, public presentations, press conferences, etc. Seven: Reports and Presentations 1. Reporting results and milestones will be done as deliverables are met in the implementation of the Fayetteville First Economic Development Strategic Plan and will be formatted to fit within the City's Economic Development branding on the city web site. The City's internal Economic Development team will meet regularly with the Chamber of Commerce (ata minimum on a monthly basis) to discuss the status of deliverables. The Mayor and/or City Council may request periodic updates and public engagement for citizens to be kept informed of the city's economic development goals. 2. The Chamber of Commerce shall provide written reports and prepare a brief presentation to the Mayor and City Council on at least a bi-anhual basis. 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O V W Q U. c dl. _ c p L .. a `^ c cn N y O m v a' N N m E u r0 of . u 4+ N' N C '6 }>`+ _ N > C au- p !-' •� E u Z ` C c N :`_- N d> O d vi N 0 O W O C p U N '� N Otf u vi °1 E N •� p E ,0 W d ..^ L p vN :a:+ N p uNi C ° 'N }\ L N N O Cl c N c a' = "' a' °• a` ii `J o E m c C * }T. n ' _ 'c m N p a rNc c o u ° .� u y u N >, ° 3° L p Z3 H N y V1 .> _ at N N `� O O 0 OO V .0 C C N N C vi •y O 'O N y N C> N c N U C !_' p N C O. m V W �J,J w C •� 7 7 C v� c �' E p T N O �' vNi >` C N N E = L }. O O N C N v' Y � E O ° O' u �+ a N `> m m u� c w Cl rn E O }+ W nc u> v o w E a O O. �.r c N > w. OC � V p L r N th � a p 7 0 7 v' V-0 L N N 'D w QY .-• N r p .r a1 U C N N (l P E CO u- Cl fr -0' m v- d N W Ql C C Vl Vn City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number DEVELOPMENT SERVICES (620) /Org2 2016 Requestor: Jeremy Pate BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: $360,000 is requested in the Economic Development Services account. These funds will be used for a 2 -year contract, billed quarterly at a rate of $15,000, with the Fayetteville Chamber of Commerce. The funds are being requested from the Use of Fund Balance. RESOLUTION/ORDINANCE COUNCIL DATE: LEGISTAR FILE ID#: 10/4/2016 2016-0405 $ar2rarw Fea 9/12/2016 4:05 PM Budget Director TYPE: DESCRIPTION: GLDATE: POSTED: Date TOTAL 360,000 360,000 x.20160722 Increase / Decrease) Pyr:, I. Surd? Account Number Expense Revenue Project Sub AT Account Name 1010.050.0500-5315.00 360,000 - EX Contract Services 1010.001.0001-4999.99 - 360,000 RE Use Fund Balance - Current 18 5-1 � FAYETTEVILLE CHAMBER OF COMMERCE City of Fayetteville Staff Review Form 2017-0764 Legistar File ID N/A City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Devin Howland 12/18/2017 ECONOMIC DEVELOPMENT (050) Submitted By Submitted Date Division / Department Action Recommendation: MAYOR JORDAN'S SIGNATURE IS NEED ON THE CONTRACT UPDATE FOR THE FAYETTEVILLE CHAMBER OF COMMERCE. Budget Impact: Account Number. Fund Project Number Project Title Budgeted Item? No Current Budget $ Funds Obligated $ - Current Balance $ Does item have a cost? No Item Cost Budget Adjustment Attached? NA Budget Adjustment Remaining Budget $ Previous Ordinance or Resolution # 185-16 v20140710 Original Contract Number: Approval Date:' {�- Comments: CITY OF FAYETTEVILLE ARKANSAS TO: Lioneld Jordan, Mayor THRU: Don Marr, Chief of Staff FROM: Devin Howland, Director of Economic Vitality DATE: December 18, 2017 SUBJECT: Fayetteville Chamber of Commerce Contract Update STA PP ME M-0 RECOMMENDATION: Mayor Jordan's signature is needed on the amendment to the contract for economic development consulting services between the City of Fayetteville and the Fayetteville Chamber of Commerce. DISCUSSION: The Department of Economic Vitality met with the Fayetteville Chamber of Commerce to discuss several revisions to the contract which would assist in fostering increased collaboration between the City and the Fayetteville Chamber of Commerce. The amendment revises the performance measures of the contract to align with the Department of Economic Vitality's performance measures set forth in the 2018 budget. The amendment also adds weekly conference calls between the City and the Fayetteville Chamber of Commerce, as well as an additional quarterly collaboration meeting between the City and all other economic development consulting partners. Attachments: Amendment No. 1 TO THE CONTRACT FOR ECONOMIC DEVELOPMENT CONSULTING SERVICES BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND THE FAYETTEVILLE CHAMBER OF COMMERCE. Exhibit A: Revised Schedule of Deliverables and Performance Measures Mailing Address: 113 W. Mountain Street www.fayettevIlie-ar.gov Fayetteville, AR 72701 AMENDMENT NO. 1 TO THE CONTRACT FOR ECONOMIC DEVELOPMENT CONSULTING SERVICES BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND THE FAYETTEVILLE CHAMBER OF COMMERCE WHEREAS, on October 4, 2016, the City of Fayetteville, Arkansas ("City") and the Fayetteville Chamber of Commerce ("Chamber") entered into a contract for Economic Development Consulting Services (the "Contract') to be provided through September 30, 2018, and; WHEREAS, the parties desire to amend this agreement as set forth below. NOW, THEREFORE, BE IT KNOWN TO ALL: That the City and the Chamber, on this d day of ❑ 2017, hereby agree: A. That the Schedule of Deliverables and Performance Measures referenced in Section 3(a) and the third bulleted paragraph of Section 4 of the original Contract shall be replaced by the Revised Schedule of Deliverables and Performance Measures attached to this Amendment as "Exhibit A" and incorporated herein. B. The parties agree and understand that this Amendment is supplemental to their Contract for Economic Development Consulting Services dated October 4, 2016, and that it does not alter, amend or abridge any of the rights, obligations, or duties of the parties not expressly addressed herein. IN WITNESS WHEREOF, the parties hereto have caused their signatures to be set by their authorized representative effective the date set forth herein above. FAYETTEVIL LO -2 J. S ER OF COMMERCE President and CEO Date: 1,21 Witness:Date: 3 !�N ATTEST: Y',� & J4,& Sondra E. Smith, CClerk-Treasurer %%111911rr11I,, 1 T R���,rrrfr op r �- '.y frrrry�� G TO !!lrlllhllll Date: %)_ " 2�-,�lJ/7 Date: 1,2 _2111 -.2dl Exhibit "A" Contract for Economic Development Services - Business Retention and Expansion REVISED Schedule of Deliverables and Performance Measures As outlined herein, the Chamber of Commerce shall provide the following services, more generally referred to as Business Retention and Expansion or BR&E services: One. Create a robust retention and expansion program for the business community, with a more focused strategy for the target sectors of legacy industry, regional headquarters and startup/entrepreneurial businesses; Two. Determine property availability, data and building needs for targeted business sectors; Three. Develop a focused retail development strategy based on a thorough inventory and analysis of the city's existing retail base and gaps; Four. Coordinate with NWA Council and others to ensure workforce and training needs can be met, with a thorough understanding of existing and future industry and targeted sector needs; coordinate with area educational providers and business sectors to ensure appropriate skilled trade programs and training are available; Five. Support programs and initiatives that improve the outstanding lifestyle quality in Fayetteville. Promote, foster, and seek development opportunities that help create an environment and amenities that attract the new millennial worker and/or business owners. Six. Collaborate with the City for communication with the public Seven. Report Outcomes One: Create a robust business retention and expansion LBR&Ej program 1. At a minimum the following deliverables shall be included for each of the action items identified in the BR&E program: a. Goals for the number of businesses to be visited each year within the identified business sectors, coordinating closely with the Northwest Arkansas Council so as to not duplicate regional economic development services and business visits related to employer retention and expansion, workforce development and education efforts. The city expects at least 100 businesses to be visited annually through the contract period, based on employment numbers, sales impact, relationship to target sectors, or other criteria. Annually, b. The development of a survey or question naireto be used during interviews with existing businesses with results tabulated in a regularly updated and shared reporting document c. The development of a process for addressing any business needs or challenges that were identified during the visit and survey; d. Use of a shared spreadsheet for timely tracking of visits, employer input, business challenges or needs, and other data identified as needed for tracking purposes; e. A summary report of the accomplishments of the program that year, including the information above, as well as the number of new expansion projects, jobs created or saved, average wages (when disclosed) and investment related to the program(s); f. Demonstrate efforts to acquire and track the following: I. An increased number of net new businesses established in the city over time; ii. An increase in annual sales from businesses located in the city over time; iii. An increase in the percentage of residents employed over time; iv. An increase in the number of net new jobs overtime; v. A decrease in the unemployment rate of residents over time; vi. Various business sector employee wages, and how they increase or decrease as jobs are gained/lost. vii. An increase in the number of inquiries from prospective companies over time; and viii. An increase in net new retail and accommodation establishments over time. 2. Legacy Industry: Develop and maintain an up-to-date directory of legacy industries (including but not limited to manufacturers) within the City. Develop a BR&E program with questions and data designed to meet this business sector's needs, exploring questions related to facility retention and expansion, new equipment investment, workforce attraction and training, and physical infrastructure needs such as rail, broadband, transportation or utilities. 3. Regional Headquarters: Develop and maintain an up-to-date directory of businesses headquartered in Fayetteville, whether they maintain a home office or a regional headquarters within the City. Develop a questionnaire to explore the corporate services sector, including healthcare, to develop good working relationships with local management teams and to identify and establish relationships with parent headquarters outside of Fayetteville when deemed valuable. 4. Start-up/Entrepreneurial Businesses: Work in partnership with the City's Entrepreneurship and Innovation contractor to develop a BR&E program for interviewing and gathering data for the start-up/entrepreneurial business sector. Customize questions to understand how the City can best support the creation and sustaining of start-up companies created in Fayetteville, coordinating closely with other City-iriitiated entrepreneurial efforts. Support the advertising of appropriate seminars or training for Fayetteville or NWA in coordination with other City -initiated entrepreneurial efforts. Two: Assess and meek property, building and data needs of tarizeted business sectors Fayetteville First identifies five targeted business sectors: Corporate Services, Entrepreneurs and Innovators, Legacy Manufactures, Retail and Specialized Technologies. Each of these target sectors will have varying needs, and some will have similarities. 1. Determine available properties. Create a comprehensive inventory of all sites and buildings that are available for potential development and ensure that the AEDC sites and buildings database are kept updated accordingly. 2. Assess site and building needs of targeted business sectors. Assess the potential site, building, and data needs of each of the targeted sectors, determine the need to identify additional sites and encourage the development of appropriate property in the future. Consideration must be given to match a company's requirements to the types of service available, which shall be assessed using measurable criteria through the BR&E surveys. Three: Develop a focused retail development strategy - 1. Conduct a thorough inventory and analysis of Fayetteville's existing retail base and gaps. Working with the Northwest Arkansas Council and/or others, identify and inventory the existing retail base and gaps in the city. 2. Examine local and regional demographic and retail trends. Demonstrate a clear understanding of the demographics of the city and region (to include Fort Smith as well as Northwest Arkansas), evaluating typical factors considered by the retail sector in its location decisions, which often include population, population growth, educational attainment and income. A retail infographic deliverable, coordinated with the City's Communications and Marketing team, shall reflect the results of this analysis and be used to market Fayetteville and the region to potential retailers and retail developers, with the goal of filling identified gaps. 3. Identify potential commercial properties. Identify potential commercial properties, large to small, to be mapped and marketed to potential retailers and retail developers, where appropriate as identified through the retail analysis. Potential redevelopment sites that may be appropriate for retail shall also be identified and catalogued, particularly in targeted redevelopment areas identified by the City. 4. Identify potential retail targets. Based on the outcome of the retail base and gap analysis, as well as the commercial property inventory, identify potential specialty retailers to focus marketing efforts. 5. Attend the designated International Council of Shopping Centers (ICSC) national and/or Regional conventions and participate with the City of Fayetteville representatives and regional economic development efforts at the National and Regional ICSC Show. Coordinate with the Mayor's designated staff to determine who should attend the ICSC convention or an applicable regional event, arrange for interviews, and coordinate with the City's Marketing and Communications team to provide marketing or information materials. Four: Ensure Workforce and Training needs can be met 1. Understand existing industry and targeted business sector needs. Review and participate in workforce analysis studies conducting for the region to gain an understanding of the workforce availability related to the occupations required of the targeted business sectors, potentially partnering with the NWA Council on this initiative. 2. Research and conduct a survey of regional higher educational institutions. Develop an understanding of enrollment, degrees offered and graduates of regional institutions of higher education that may serve Fayetteville. 3. Convene regional educational leadership. Coordinate with the Northwest Arkansas Council to participate in discussions with local institutions of higher education, public school career and technical education program leaders, as well as local industry and targeted sectors, and determine whether the workforce and training needs of the identified target markets can be met. Work with these institutions to expand skilled trade programs and training, and determine possible new program development in the future to meet the needs of the targeted business sectors and existing business and industry. Once established, create and measure performance standards to fill gaps in the workforce and training needed. Five: Support initiatives and programs that continue to improve the outstanding lifestyle quality in_Fa)t_e_tteyille 1. Explore redevelopment opportunities. During the stakeholder engagement process, many mentioned that they would like to see redevelopment along 71B (College Avenue and South School Avenue). In line with the CityPlan 2030 goals to prioritize infill over sprawl, to accommodate growth, and to bring more people to live, shop and play along Fayetteville's original Main Street, redevelopment of 71B is important for the city and should include improvement in walkability, new retail, residential and business development. Initiate a process to create immediate, short- and long-term priorities to explore and encourage redevelopment opportunities along 716, as well as other areas of the city that should be identified as priorities for redevelopment. 2. Attract and retain the workforce of today and tomorrow. With the presence of the U of A and the lifestyle quality the city offers, Fayetteville should be a prime location for the millennial population, as well as the future Generation Z, and attracting and retaining that population must be a focus related to talent. Maintaining and enhancing an authentic culture for its residents and student population to remain in the city requires coordination in many of the identified focus areas. Walkable neighborhoods with commercial areas, including urban mixed-use developments, diversity, transportation alternatives and amenities like arts, culture and restaurant choices appear in numerous studies identifying where millennials want to be. Care for the environment and the desire to live in communities that practice sustainable development are also prevalent. The Chamber of Commerce will collaborate with and support the City and other City -led entrepreneurial efforts in the creation of a millennial advisory panel that can recommend policies, education and development practices that provide the best quality of life amenities and environment for this diverse. population. 3. Promote, foster, and seek development opportunities that help create an environment and amenities that attract the new millennial worker and/or business owners. Work with the development community and City to explore initiatives meeting these stated goals. Six: Collaborate with the City for Communication with the Public 1. The City's Economic Development web site will be used to communicate the implementation of the Fayetteville First plan, using the City's branding and marketing. All communication and engagement with the business community via surveys and questionnaires will be done from a link within the City's Economic Development web site pages and will be promoted on the City's social media channels via coordination with the City's Communications and Marketing Team. All performance measures and reports will be updated on a regular basis via the City's web site. The Chamber of Commerce will work with the City's Communications and Marketing Team to ensure that the deliverables from this contract remain up to date on the City's Economic Development web site. Responses to requests for information and updates shall be timely and within reason. 2. Communications from the Chamber of Commerce related to economic development initiatives within the scope of this contract, major decisions and/or development matters, and public -facing activities should be coordinated with the Mayor's office or his assigned staff. This includes statements at City Council meetings, Agenda Sessions, public presentations, press conferences, etc. Seven: Reports and Presentations 1. Reporting results and milestones will be done as deliverables are met in the implementation of the Fayetteville First Economic Development Strategic Plan and will be formatted to fit within the City's Economic Development branding on the city web site. The City's internal Economic Development team will meet regularly with the Chamber of Commerce (at a minimum on a monthly basis) to discuss the status of deliverables. The Mayor and/or City Council may request periodic updates and public engagement for citizens to be kept informed of the city's economic development goals. The Fayetteville Chamber of Commerce will be expected to attend quarterly "collaboration meetings" with the City of Fayetteville and Entrepreneurship and Innovation contractor. The Fayetteville Chamber of Commerce will attend weekly conference calls with the Director of Economic Vitality. 2. The Chamber of Commerce shall provide written reports and prepare a brief presentation to the Mayor and City Council on at least a bi-annual basis. Reports and presentations should outline the tasks accomplished, outcomes achieved and include statistics for each performance measure outlined herein. 3. A schedule for completion of outlined performance measures and a monthly status report shall be submitted for each month of the contract, delivered during regular monthly meetings with the City's internal team.