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HomeMy WebLinkAbout1995-12-12 - AGENDA REPORTS - ECONOMIC DEVELOPMENT STRAGEGY (2)AGENDA REPORT City Manager Approval Item to be presented by: Mike Haviland CONSENT CALENDAR DATE: December 12, 1995 SUBJECT: ECONOMIC DEVELOPMENT STRATEGY DEPARTMENT: Community Development BACKGROUND The recently completed Economic Development Strategy recommended that the economic development roles and responsibilities of the City and the Santa Clarita Valley Chamber of Commerce be clarified through a contract for services between the two entities. The attached service contract provides that the Chamber of Commerce economic development role should be to implement programs on behalf of the City in the following areas: Film; Tourism; Small Business Assistance; and a Shop Local campaign. The program would be renewable annually for up to four years. The City will provide annual matching funds up to the following limits: Film $30,000 (matching funds are not required for Film); Tourism $30,000; Small Business Assistance $4,000; and, Shop Local campaign $2,000. There will be an annual program evaluation of jointly agreed upon goals through the City's Economic Development Division. Initial funding for the service contract would begin July 1996. RECOMMENDATION It is recommended that the City Council authorize the City Manager to enter into a service contract agreement with the Santa Clarita Valley Chamber of Commerce to provide economic development services for a six month period. MKH:11 econdev\ad21295.1 Agenda Item: l' AGREEMENT FOR APPROPRIATION OF FUNDS THROUGH DIRECTION OF THE CITY COUNCIL TO PRIVATE OR PUBLIC AGENCY This Agreement, dated for purposes of identification only this 12th day of December, 1995, is made and entered into by and between the CITY OF SANTA CLARITA, a municipal corporation, hereinafter referred to as "SANTA CLARITA", and the SANTA CLARITA VALLEY CHAMBER OF COMMERCE, hereinafter referred to as "CONTRACTOR". WITNESSETH WHEREAS, SANTA CLARITA has appropriated certain funds to provide business promotion and marketing services to specific agencies; and WHEREAS, CONTRACTOR represents that it is capableof providing such services. NOW, THEREFORE, for and in consideration of the mutual promises, covenants and conditions herein contained, the parties hereto agree as follows:. 1. SANTA CLARITA agrees to pay to CONTRACTOR and CONTRACTOR agrees to accept from SANTA CLARITA the annual sum of up to Sixty -Six Thousand Dollars ($66,000.00) hereinafter referred to as "FUNDS", for the next four years, until the year 2000.. a. Santa Clarita will provide Thirty Thousand Dollars ($30,000) in annual funding toward services of the Santa Clarita Valley Film Bureau. b. Santa Clarita will provide annual funding amount not to exceed Thirty Thousand Dollars ($30,000) in matching funds on a dollar for dollar basis for the services of the Santa Clarita Valley Tourism Bureau. C. Santa Clarita will provide an annual funding amount not to exceed Four Thousand Dollars ($4,000) in a dollar for dollar matching fund basis, for a Santa Clarita Small Business Assistance Program. d. Santa Clarita will provide an annual funding amount not to exceed Two Thousand Dollars ($2,000) on a dollar for dollar matching basis, for a Santa Clarita "Shop Local" promotion program. 2. CONTRACTOR agrees to expend FUNDS solely and exclusively to provide he following services for SANTA CLARITA: a. Implementation of a Santa Clarita Film Bureau work program to promote the film and entertainment industry within the Santa Clarita Valley (See Exhibit A), to serve as a film liaison to the City of Santa Clarita Economic Development Division. b. Implement a Santa Clarita Valley Tourism Bureau work program to promote the Santa Clarita Valley to visitors and tourists (See Exhibit B), to serve as a tourism liaison to the City of Santa Clarita Economic Development Division. C. Implement a Small Business Assistance Program for businesses establishing and/or existing in the Santa Clarita Valley. d. Implement a "Shop Local" program to befit the Santa Clarita Valley economy. 3. CONTRACTOR shall submit a year end evaluation report to the City of Santa Clarita, due no later than May 30, of each year. The report shall be submitted in a narrative format no less than one page nor more than four pages in length for each of the four service contract area: Film, Tourism, Small Business Assistance, and Shop Local. Each report shall describe in detail the progress toward implementing the respective, mutually agreed upon work programs as described in Exhibits A, B, C, and D. 4. Beginning in July 1996, funds will be disbursed to the CONTRACTOR upon request, on a quarterly basis. 5. CONTRACTOR agrees that SANTA CLARITA may, at any time, audit any and all of CONTRACTOR'S books, documents or records relating to this Agreement. 6. CONTRACTOR agrees to indemnify, defend with Counsel of SANTA CLARITA'S choice, and hold harmless SANTA CLARITA, its officers, agents, employees, representatives, and volunteers from and against any and all claims, demands, defense costs, actions, liability, or consequential damages of any kind or nature arising out of or in connection with CONTRACTOR'S (or CONTRACTOR'S subcontractors, if any) performance or failure to perform, under the terms of the Agreement. Without limiting SANTA CLARITA'S right to indemnification, it is agreed that CONTRACTOR shall secure prior to commencing any activities under this Agreement, and maintain during the term of this Agreement, insurance coverage (if applicable), and consistent with standards in such agencies as follows: a. Workers' Compensation Insurance as required by California statutes. b. Comprehensive General Liability Insurance, or Commercial General Liability Insurance, including coverage for Premises and Operations, Contractual Liability, Personal Injury Liability, Products/Completed Operations Liability, Broad -Form Property Damage (if applicable) and Independent Contractors' Liability (if applicable), in an amount of not less than Five Hundred Thousand Dollars ($500,000.00) per occurrence, combined single limit, written on an occurrence form. C. Comprehensive Automobile Liability coverage, (if applicable), including owned, non -owned and hired autos, in an amount of not less than One Million Dollars ($1,000,000.00) per each occurrence, combined single limit, written on an occurrence form. d. Professional Liability Insurance coverage, (if applicable), in an amount not less than One Million Dollars ($1,000,000.00), and CONTRACTOR shall maintain such coverage for at least one (1) year from the termination of this Agreement. e. SANTA CLARITA'S Risk Manager is hereby authorized to reduce the requirements set forth above in the event he or she determines that such reduction is in SANTA CLARITA'S best interest. Each insurance policy required by this Agreement shall contain the following clauses: "This insurance shall not be canceled, limited in scope or coverage, or non -renewed until after thirty (30) days prior written notice has been given to the City Clerk, City of Santa Clarita, 23920 Valencia Blvd., Suite 300, Santa Clarita, California 91355." "It is agreed that any insurance maintained by the City of Santa Clarita shall apply in excess of and not contribute with insurance provided by this policy." Each insurance policy required by this Agreement, excepting policies for workers' compensation and professional liability, shall contain the following clause: "The City of Santa Clarita, its officers, agents, employees, representatives and volunteers are added as additional insureds as respects operations and activities of, or on behalf of the named insured, performed under contract with the city of Santa Clarita," 7. Prior to commencing any work under this Agreement, CONTRACTOR shall deliver to SANTA CLARITA insurance certificates confirming the existence of the insurance required by this Agreement, and including the applicable clauses referenced above. Also, within thirty (30) days of the execution date of this Agreement, CONTRACTOR shall provide to SANTA CLARITA endorsements to the above -required policies, which add to these policies the applicable clauses referenced above. Said endorsements shall be signed by an authorized representative of the insurance company and shall include the signatory's company affiliation and title. Should it be deemed necessary by SANTA CLARITA, it shall be CONTRACTOR'S responsibility to see that SANTA CLARITA receives documentation acceptable to SANTA CLARITA which sustains that the individual signing said endorsements is indeed ' authorized to do so by the insurance company. Also, SANTA CLARITA has the right to demand, and receive within a reasonable time period, copies of any insurance policies required under this Agreement. 8. In addition to any other remedies SANTA CLARITA may have is CONTRACTOR fails to provide or maintain any issuance policies or policy endorsements to the extent and within the time herein required, SANTA CLARITA may, at its sole option: a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement. b. Order CONTRACTOR to stop work under this Agreement and/or withhold any payment(s) which become due to CONTRACTOR hereunder until CONTRACTOR demonstrates compliance with the requirements hereof. C. Terminate this Agreement. 9. Exercise of any of the above remedies, however, is an alternative to other remedies SANTA CLARITA may have and is not the exclusive remedy for CONTRACTOR'S failure to maintain insurance or secure appropriate endorsements. 10. Nothing herein contained shall be construed as limiting in any way the extent to which CONTRACTOR may be held responsible for payments of damages to persons or property resulting from CONTRACTOR'S or its subcontractor's performance of the work covered under this Agreement. 11. CONTRACTOR agrees to indemnify and hold SANTA CLARITA harmless, including its officers, agents and employees, from any and all claims of the United States of America for reimbursement of FUNDS or any portion of thereof due to the improper use of funds.. 12. Notices and communication concerning this Agreement shall be sent to the following addresses: SANTA CLARITA CONTRACTOR City of Santa Clarita Santa Clarita Valley Chamber of Commerce Attn: City Clerk Attn: Leigh Eagdahl, Executive Vice President 23920 Valencia Blvd., Suite 300 23920 Valencia Blvd., Suite 125 Santa Clarita, CA 91355 Santa Clarita, CA 91355 13. The effective date of this Agreement shall be the latest date of execution hereinafter set forth opposite the names of the signatories hereto. In the event CONTRACTOR fails to set forth a date of execution opposite the name(s) of CONTRACTOR'S signatory(s), CONTRACTOR hereby authorizes SANTA CLARITA, by and through its representative, to insert the date of execution by CONTRACTOR'S signatory(s) as the date said Agreement, as executed by CONTRACTOR, is received by SANTA CLARITA. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the dates hereinafter respectively set forth. CITY OF SANTA CLARITA a municipal corporation By City Manager DATE OF EXECUTION: ATTEST: By City Clerk SANTA CLARITA VALLEY CHAMBER OF COMMERC. DATE OF EXECUTION: By "CONTRACTOR" Printed Name Title "CONTRACTOR" APPROVED AS TO FORM: CARL NEWTON, CITY ATTORNEY Lo ecoddev\chamher.doh EXHIBIT "A" FILM & ENTERTARQMNT WORK PROGRAM PIAN I. GOALS/OBJECTIVES Goals To promote and increase the film and entertainment industry as a means of bringing revenue to the Santa Clarita Valley, promoting local products, services, locations, studios and labor. Obi ectives 1. Continue to act as an avenue of communication between location companies and residents, and facilitate solutions to problems and issues related to "shooting" in the Santa Clarita Valley, 2. Continue to encourage production companies to do business in the Santa Clarita Valley by familiarizing them with products and services offered by local companies. 3. Continue to create a compatible environment for filming in the area. 4. Continue to encourage hiring of local talent and crew from within the Santa Clarita Valley. 5. Report to the City of Santa Clarita Economic Development Division on an annual basis the following: • Information describing the level of film activity in the Santa Clarita Valley including: a. name and number of companies filming b. project/type (i.e. feature, commercials, television) C. site/location used (dates, frequency/number of days) • Information describing fiscal impact of filming activity on the Santa Clarita Valley economy • Information describing examples of positive name exposure for "Santa Clarita" in connection with the film and entertainment industry Information documenting the level of inquires (telephone, trade show, walk-ins, etc.) regarding filming • Further data appropriate to filming activity in the SCV (number of permits; number of companies; ranches; studios; homes) Number of inquires (telephone and walk -&s) H. PROJECUSERVICE SCV Film Bureau and Committee • Produces informational materials to accomplish the goals and objectives of the Marketing Plan • Continue to sponsor an annual "Fain Tour" showcasing appropriate film sites and the unique filming opportunities within the Santa Clarita Valley • Continue to produce the "Clarita Awards" featuring the talents of local junior and senior high school students creating their own film and video projects • Continue publishing "On Call", a data base of local residents who represent a pool of local resources and services to serve the filmand entertainment industry • Continue publishing "SCV Film & Entertainment Guide" • Continue Vendor Opportunity seminars to support business growth in the film industry SCV Film Bureau Staff • Acts as a full service coordination center to address needs of community and the filming industry in the Santa Clarita Valley III. TARGET AUDIENCE • Film, television, still photographers, location managers, producers and other entertainment professionals • Local residents having an interest in film and entertainment • Local businesses having an interest in film and entertainment industry • Guilds[Unions and state and county film promotion organizations and associations • Outside interests seeking information on Santa Clarita Valley film activities IV. COMMUNICATION/MESSAGE • Variety of locations and studios offered; businesses and homes • Availability of vendors, studios, services and resources requested for film production • Lower production costs • Mild climate with little inclement weather • Located within the "30 Mile Zone" • "Film friendly" community • Full Service Santa Clarita Valley Film Bureau V. MEDIA • Printed materials -- Film and Entertainment Guide listing locations, studios, businesses and general film information in the Santa Clarita Valley • Events to promote filming and its advantages to the community and industry (i.e. trade shows; vendor opportunity seminars; Fam Tour) • Displays at local film industry exhibitions (ShowBiz Expo; Locations Expo and Business Expo) • Word of mouth -- Personal contacts Membership/Associations with the Department of Commerce, California Film Commission, FLICS (Film Liaisons in California Statewide), AFC (Association of Film Commissioners) and the City of Santa Clarita Local and out -of -area press (Signal; Daily News; Hollywood Reporter; Daily Variety; Locations; Location Update) VI, ACTION PLAN Goals and Obiectiv Goals and objectives will be accomplished by the Santa Clarita Valley Film Bureau and Committee. Specific details of action plan will be set annually at a goal - setting session and according to the finances available. Marketine/Advertisine • To aggressively market/advertise to the film and entertainment industry, and to businesses in the Santa Clarita Valley who will benefit through their association with the industry. • Produce and distribute a marketing brochure • Produce "On Call" data base featuring local talent and crew • Meet with eight production companies/studios and/or entertainment related businesses • Meet twice each month with businesses located in the Santa Clarita Valley • Attend local/regional film and entertainment related association/organization meetings (as budget allows) • Advertise in four major industry publications (as budget allows) • Distribute Film Guides to local businesses • Purpose: To familiarize the public with SCV film activities by distributing City brochures, Film and Entertainment Guides, and other appropriate film - related material • Responsibility: SCV Film Bureau and Committee • Cost: $6,500 Trade Shows Locations' Expo; ShowBiz Expo; Business Expo (booth materials; registration; meals; parking • Purpose: To promote SCV Filming resources to the industry/public • Responsibility; SCV Film Bureau and Committee in coordination with SC Economic Development Division • Cost: $7,000 Administration of SCV Film Bureau and Committee To handle daily operations of Bureau and Committee Answer 800 film - related phone calls each year (current estimates are 19% of all Chamber calls are film -related) Cover telephone expenses of above (equipment and air time) Mail Film Guides and other related materials to companies requesting location and product/service information on the Santa Clarita Valley (approximately 60 per year) • Mail Film Guides to production companies identified to be in pre -production phases, recommending the Santa Clarita Valley as their "location of choice" (approximately 20 per year) • General Liability Insurance coverage of events (4 a year/seminars and workshops) Copies (i.e. thousands of meeting agendas; meeting minutes; press releases; correspondence; etc.) • Supplies (i.e. binders; paper; pens; files; etc.) • Meeting space for seminars (approximately 2 a year estimated at $100 each) • Fax machine and paper (3 calls/20 sheets of paper per day) • Responsibility: SCV Film Bureau and Committee/SCV Chamber of Commerce • Cost: $14,400 Fam Tour • (Invitations; transportation; location maps; mailings; food; promotional packets) • Purpose: To introduce Location Managers, Directors, Producers and other industry representatives to film resources in the Santa Clarita Valley • Responsibility: SCV Film Bureau and Committee • Cost: $1,500 Special Events/Proiects/Seminars ( i.e. Clarita Awards; Vendor Opportunity Seminars; Speaker's Bureau; Entertainment Industry Development Corporation permit office wall) • Purpose: To further promote filming through these promotional projects • Responsibility:: SCV Film Bureau and Committee • Cost: $6,100 Implement Tracking System • Enhance and update computer software programs (bulletin board programs) used to track permits, location activity, talent pool, and other information pertinent to filming. • Responsibility: SCV Film Bureau and Committee • Cost: $9,500 VII. EVALUATION Projects will be critiqued on an annual basis by the City of Santa Clarita Economic Development Division. Performance measures will be mutually agreed upon by the City and Film Bureau. Performance measures to be reported include: fiscal impact; number of volunteers; attendance at events; media coverage; and analysis of positive/negative aspects of the promotion of film related activities in the Santa Clarita Valley as compared to prior year events. Film Bureau activities will be monitored: phone requests for information; personal contacts; permit activity; studio and ranch activity; analysis of data received as to filming; commercials and TV categories. Committee activity: number of meetings; number of attendees; record- keeping including agendas and minutes. Act as volunteer manpower to carry out Committee functions. econaev\chember. a EXHIBIT "B" TOURISM MARKETING BUDGET AND WORK PROGRAM (Period: July 1, 1995 -June 30, 1996) ADVERTISING & RESEARCH Golden California* (Spring & Summer) California Visitor Guide* (Annual) Destination LA* (Spring, Summer, Fall & Winter) AAA Tour Book** (Annual) $30,000 Shop & Play Local (Holiday & Event Promotions) 5,000 Certified Rack Literature Distribution (Annual) 3,500 Miscellaneous. Opportunities 5.000 Sub -Total: $44,200 OPERATING SUPPLIES 800# Tourism Phone Lines $ 3,000 Correspondence, Postage & Miscellaneous 2.800 Sub -Total: $ 5,800 PUBLIC RELATIONS Press Releases, Co -Op Packages, Media Evaluation, Event Promotions, Research & Coordination 4,000 Sub -Total• $ 4,000 DUES & CONFERENCE FEES LACVB Membership (Annual) & California Travel Industry Association (Annual) 2,000 Sub -Total: $ 2,000 GRAND TOTAL: 56 000* City contribution to tourism program is a maximum of $30,000 based on matching funds of private sector, beginning in July 1996. EVALUATION Program will be critiqued on an annual basis by the City of Santa Claris Economic Development Division. Performance measures will be mutually agreed upon by the City and the Santa Clarita Valley Tourism Bureau. Performance measures to be reported include: Number of "800" Tourism calls; number of coupon redemptions from advertising; event attendance; and hotel occupancy. econaev\chsmber.xb EXBIBIT"C" SMALL BUSINESS ASSISTANCE PROGRAM WORK PROGRAM 1. Provide one-on-one business counseling for small business start-up and expansion of the Senior Corps of Retired Executives (SCORE). SCORE is an organization that volunteers retired executives to assist small businesses. The program will be coordinated by the Santa Clarita Valley Chamber of Commerce. 2. Implement the California Chamber's Small Business Assistance Program. "Business Kits" at $30 each, contain a step by step process for starting a business including all the necessary Federal and State required forms. 3. Information referral on basic demographic data, contacts for City permit processing and requirements, along with other SBA information will be provided by the Chamber. 4. Monthly seminars based on demand as focusing on specific subject areas such as: accounting; legal; business plans; financing; computer management systems; etc.. 5. Develop an annual work program with measurable goals and specific objectives. EVALUATION Program will be critiqued on an annual basis by the City of Santa Claris Economic Development Division. Performance measures will be mutually agreed upon by the City and the Santa Clarita Valley Chamber of Commerce. Performance measures to be reported include: Number of clients served; number of seminar attendees; number of clients counseled or interviewed; demographic and other information provided; number of business kits sold; and specific examples of assistance provided to existing of new business start ups. EXHIBIT "D" SHOP LOCAL WORK PROGRAM Develop a program to encourage Santa Clarita residents to shop locally. The program will create awareness of the availability of goods and services within the Valley, and place emphasis on the convenience of local purchases. Also additional value results from local sales tax being returned to the community through additional public services. 2. The program will create an annual campaign aimed at encouraging local residents to shop locally within the Santa Clarita Valley. 3. Develop an annual work program with measurable goals and specific objectives. EVALUATION Program will be critiqued on an annual basis by the City of Santa Clarita's Economic Development Division. Performance measures will be mutually agreed upon by the City and the Santa Clarita Valley Chamber of Commerce. Performance measures to be reported include: Number of businesses participating in Shop Local campaign; response to coupon offering; validation of successful communication of Shop Local campaign message; measures of the community's awareness of the Shop Local campaign. econdev\chamber.ad