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Home My WebLink About81-23 RESOLUTIONcf. paverrg ti 'r ti f� r i �KA[15 FS 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 81-23 File Number: 2023-533 ADDITIONAL FTE POSITION AND BUDGET ADJUSTMENT FOR DEPARTMENT OF ECONOMIC VITALITY: A RESOLUTION TO AUTHORIZE THE ADDITION OF A FULL TIME EQUIVALENT POSITION TO THE ECONOMIC VITALITY DEPARTMENT, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, to meet a series of complex economic needs currently facing Fayetteville, the Department of Economic Vitality has been restructuring the City's economic development efforts in order to increase operational efficiencies and make taxpayer dollars have a greater impact; and WHEREAS, adding an additional position will allow the Department of Economic Vitality to have an employee who focuses on equitable and inclusive economic development efforts that are critically important to Fayetteville residents including childcare, inclusive workforce development for populations who face barriers, and attainable housing. 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 an increase of one full time equivalent position of Economic Equity and Mobility Project Manager within the Department of Economic Vitality. 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. PASSED and APPROVED on April 4, 2023 Page 1 Attest: oti r t t ; r r111/�' `� _L�' • .� �� Y Cyr ';r Kara Paxton, City Cle Treasurer } r • 1 CITY OF FAYETTEVILLE ARKANSAS MEETING OF APRIL 4, 2023 CITY COUNCIL MEMO 2023-533 TO: Mayor Jordan and City Council THRU: Susan Norton, Chief of Staff FROM: Devin Howland, Director of Economic Vitality DATE: SUBJECT: A RESOLUTION AUTHORIZING THE DEPARTMENT OF ECONOMIC VITALITY TO HIRE ONE ADDITIONAL FULL-TIME EMPLOYEE AND TO APPROVE A BUDGET ADJUSTMENT. RECOMMENDATION: Staff is recommending approval of a resolution authorizing one additional full-time employee within the Department of Economic Vitality and approval of a budget adjustment. BACKGROUND: For many years, the City's economic development efforts were conducted exclusively through contracts with external entities. In 2016, following the adoption of the Fayetteville First Economic Development Plan, this trend changed when the Department of Economic Vitality was created to implement the plan and manage the City's two economic development contracts. An early goal of the Department was to bring a proactive approach to the practice of economic development in Fayetteville. Sales tax generating businesses, such as retail trade and restaurants and food services make up 70% of the total sales tax revenue the City receives. For some time, the City missed out on numerous restaurants and retailers that entered the region, not having a targeted approach to securing these types of investments. In 2019, the Department increased its headcount to two, bringing in a Business Development Manager to focus exclusively on securing revenue -generating businesses. The results of this focus can be seen throughout Fayetteville through investments like Walk On's, Long Horn Steak House, Cheuy's, and redevelopment projects such as The Claude apartments south of the Northwest Arkansas Mall are examples of successful projects tied to the work of this position. Additionally, programs such as parklets and the City's numerous Outdoor Refreshment Areas have expanded taxable sales. DISCUSSION: To meet a series of complex economic needs currently facing Fayetteville, the Department of Economic Vitality has been restructuring the City's economic development efforts in order to increase operational efficiencies and make the tax payer dollars which fund its work go further. The intent of these efforts is to provide a significant expansion of services without a budget increase. This can be accomplished with an additional full- time employee using half of the dollars that were dedicated to the Business Retention and Expansion Economic Development consulting contract. The duties formerly executed under the Business Retention and Expansion Economic Development Consulting Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Contract are being managed internally by Chung Tan, who was recently promoted to Director of Industry and Employer relations. Further, in the succeeding years since the Department of Economic Vitality was created, the City went from zero to over thirty years of internal economic development capacity, with its staff members holding the highest professional designations in the industry: • Certified Economic Developer (CEcD) • Economic Development Finance Professional (EDFP) Absorbing these duties internally provides the opportunity to add an additional position that will focus exclusively on equitable and inclusive economic development efforts that are critically important to our residents; childcare facilities, inclusive workforce development for populations who face barriers, and attainable housing. Staff is proposing to hire an Economic Equity and Mobility Project Manager that will provide a full-time focus on the following areas: • Adding childcare facilities throughout Fayetteville; • Targeted recruitment of essential business services to areas with the greatest need; • Expansion of job skill training programs for residents who face barriers to employment, such as Department of Labor Apprenticeship Programs; • Providing technical assistance and support to the Director with workforce and attainable housing efforts. Lastly, a large portion of these funds have been placed in professional services for implementation of the City's next Economic Vitality Master Plan. BUDGET/STAFF IMPACT: Budget adjustment attached. ATTACHMENTS: 2023-533 SRF Econ Dev FTE, 2023-533 BA Econ Dev FTE, Distribution of duties Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 - Legislation Text File #: 2023-533 A RESOLUTION AUTHORIZING THE DEPARTMENT OF ECONOMIC VITALITY TO HIRE ONE ADDITIONAL FULL-TIME EMPLOYEE AND TO APPROVE A BUDGET ADJUSTMENT. A RESOLUTION TO AUTHORIZE THE ADDITION OF A FULL TIME EQUIVALENT POSITION TO THE ECONOMIC VITALITY DEPARTMENT, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, to meet a series of complex economic needs currently facing Fayetteville, the Department of Economic Vitality has been restructuring the City's economic development efforts in order to increase operational efficiencies and make taxpayer dollars have a greater impact; and WHEREAS, adding an additional position will allow the Department of Economic Vitality to have an employee who focuses on equitable and inclusive economic development efforts that are critically important to Fayetteville residents including childcare, inclusive workforce development for populations who face barriers, and attainable housing. 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 an increase of one full time equivalent position of Economic Equity and Mobility Project Manager within the Department of Economic Vitality. 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. Page 1 Devin Howland Submitted By City of Fayetteville Staff Review Form 2023-533 Item ID 4/4/2023 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 3/7/2023 ECONOMIC DEVELOPMENT (050) Submitted Date Division / Department Action Recommendation: Staff is recommending approval of a resolution authorizing one additional full-time employee within the Department of Economic Vitality and approval of a budget adjustment. 1010.050.0500-5XXX.XX Account Number Project Number Budgeted Item? Yes Does item have a direct cost? No Is a Budget Adjustment attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget General Fund Fund Project Title $ 632,695.00 $ 202,507.24 r- 430,187.76 430,187.76 Previous Ordinance or Resolution # Approval Date: V20221130 City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number ECONOMIC DEVELOPMENT (050) /Org2 2023 Requestor: Devin Howland BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: This Budget Adjustment redistributes $180,000 in funding from contract services to a range of other accounts to accommodate the addition of 1 full -time -employee within the Department of Economic Vitality to focus on economic equity and mobility initiatives. Additionally, a large portion of funds ($68,000) are being placed within professional services and will be reserved for implementing the City's next Economic Vitality Master Plan. COUNCIL DATE: 4/4/2023 ITEM ID#: 2023-533 Noll y Black 31712023 2:47 PM Budget Division Date TYPE: D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED: TOTAL - - v.2023223 increase/ (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 1010.050.0500-5315.00 (180,000) - EX Contract Services 1010.050.0500-5100.00 49,461 - EX Salaries/Wages - FT, Regular 1010.050.0500-5105.00 3,067 - EX Payroll Taxes - FICA 1010.050.0500-5105.01 718 - EX Payroll Taxes - Medicare 1010.050.0500-5108.00 8,400 - EX Emp Insurance - Health 1010.050.0500-5108.01 164 - EX Emp Insurance - LTD 1010.050.0500-5108.02 6 - EX Emp Insurance - ADD 1010.050.0500-5108.03 171 - EX Emp Insurance - Life 1010.050.0500-5200.00 1,000 - EX Supplies - Office/Printing 1010.050.0500-5200.01 500 - EX Supplies - Copies/Lease 1010.050.0500-5303.00 1,265 - EX Publications & Dues 1010.050.0500-5210.00 24,500 - EX Minor Equipment 1010.050.0500-5314.00 68,828 - EX Professional Services 1010.050.0500-5309.02 18,000 - EX Lease - Software 1010.050.0500-5342.00 3,920 - EX Promotionals - Activities 1 of 1 Department of Economic Vitality Planned Distribution of Duties Position Director of Director of Industry Economic Vitality Economic Vitality and Employment Project Manager Services Management of the New business Economic equity and Department of attraction and mobility initiatives for Economic Vitality, proactive recruitment; populations who face including contract barriers [formerly services incarcerated, neurodiverse, generational poverty, physical or developmental disability, low level of literacy, dislocated residents, etc]; Growth Concept Business Retention Recruitment and Oriented and Expansion; expansion of Development; supportive services such as childcare, access to healthy Duties foods, targeted goods and services; Large scale special Commerce park Focused support for projects/ municipal land women, minority, and placemaking projects management, Site veteran owned (Example: SLS selection; businesses; Community, Drake Farms, Outdoor Refreshment Areas); Housing recruitment AEDC Point of Expansion of and development: contact, request for workforce Workforce housing information response, development and job and market rate prospective business skill training housing; liaison; programs, such as on-the-job training and registered apprenticeships; Data analytics, Workforce Staffing support for research, and Development. the Department's analysis; housing efforts. Municipal legislative management with Chief of Staff.