HomeMy WebLinkAbout01/21/1997, 5 - PRESENTATION BY THE ECONOMIC VITALITY CORPORATION (EVC) OF SAN LUIS OBISPO COUNTYcounck N-IwD°°
agenda REpout � -97
C I T Y OF S A N L U I S O B I S P O
FROM: Hen Hampian, Assistant CAO r[�C,
Prepared By: Jane McVey, Economic Development ManagerA `
SUBJECT: PRESENTATION BY THE ECONOMIC VITALITY
CORPORATION(EVC)OF SAN LUIS OBISPO COUNTY
CAO RECOMMENDATIONS
1. Receive an oral presentation by representatives of the EVC of
San Luis Obispo County providing an overview of current operations,
future plans, and proposed City board and financial participation
in the corporation.
2. Refer the requests for annual sponsorship ($25,000) and
revolving loan fund participation ($200,000) to staff for follow -up
reports and recommendations as a part of the development of the
1997 -99 Financial Plan and Budget and the 1997 -98 CDBG Program,
respectively.
3. Direct staff to agendize for future action the appointment of
a Council Member to the EVC Board.
DISCUSSION
The Economic Vitality Corporation of San Luis Obispo County has had
an Executive Director since mid September, whose name is Gregg
Goodwin. The EVC is now seeking private and public sources of
funding and has requested an opportunity to present their program
to each of the cities. At the January 21 Council meeting they will
be presenting their goals and requesting a future resolution of
support, financial commitment of $25,000 per year for a minimum
three year period, CDBG funding of $200,000 a year for three years
to establish a revolving loan fund, and the appointment of a City
Council Member to their Board of Directors (see attached).
While staff believes that it is important for the City to
participate in the EVC and its programs, there are several
questions that need to be answered prior to committing to the
specific level of our participation. These questions are common to
most of the cities in the county and Mr. Goodwin has been invited
to a meeting with with county -wide city managers set for January
24, 1997. Staff is therefore recommending that the Council refer
the various EVC requests to staff for follow -up review and reports.
The timeframe and context for determining our participation should
be within the upcoming Financial Plan and CDBG processes. The
appointment of a Council Member to the Board could happen earlier,
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if so desired by Council.
FISCAL IMPACT
To be discussed in follow -up report.
ALTERNATIVES
To be discussed in follow -up report.
Attachments
Letter from EVC dated December 24, 1996, including:
1. Draft resolution in support of the Economic Vitality
Corporation of San Luis Obispo County.
2. Draft Agreement for Revolving Loan Fund Services.
3. operations and Implementation Element of 1996/1997 Business
Plan.
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December 24, 1996
John Dunn
City Manager
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Dear Mr. Dunn:
I am writing in response to your request for information with regard to the January 21, 1997, San Luis
Obispo City Council Agenda Item for the Economic Vitality Corporation presentation. Please find the
following:
REQUEST: The EVC is asking to present an overview of the EVC operations and ask for City Council
consideration of the following four items at a subsequent council meeting/or meetings.
1) The City of San Luis Obispo appoint a member of the City Council to serve on the Economic
Vitality Corporation Board of Directors. The appointment would be for a one year period of time
with annual reappointment. Proxy representation will be allowed only in the case of an alternate
Council member attending.
2) The City Council consider a Joint Resolution that is being agendized for approval by all seven
incorporated cities and the County of San Luis Obispo County (proposed Resolution attached).
3) The City Council will be asked to consider the allocation of community development block grant
funds for the purposes of setting up a revolving loan fund dedicated for the City of San Luis Obispo.
The EVC proposes to administer the fund on behalf of the City. Similar RLF arrangements are
being requested in all incorporated cities. (proposed contract attached)
4) The City Council consider an annual contract for Regional Economic Development Services that
will serve as sponsorship/financial support for the EVC.
BACKROUND:
1) The Mission of the Economic Vtality Corporation is "To stimulate the economic vitality of San Luis
Obispo County, generate jobs, and increase financial investment within the County by promoting
the retention, expansion and attraction of business and industry to the area."
2) The Economic Vitality Corporations current Board of Directors consists of:
Susan Cotter, Vice President, Cuesta College, Chairman
Missie Hobson, District Manager, Pacific Gas & Electric Co., Vice Chairman
Bill Hockey, President, Pacific West Steel, Inc.
Heather Jensen, Executive Director, Arroyo Grande Chamber of Commerce
C.R. Lara, Financial Consultant, First Allied Securities
Wayne Longcrier, General Managing Partner, Barbich, Longcrier, Hooper & King, CFO
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Dick Nock, Nock Trading Company
None Placak, Manager, Employment Development Department
Donald Hanauer, retired Chamber Executive, City of Atascadero
Paul Hood, Principal Administrative Analyst, County of San Luis Obispo;
Diane Sheeley, Economic Development Manager, City of Paso Robles;
Bob Schiebelhut, Attorney, Sinsheimer, Schiebelhut and Baggett;
Richard Woolslayer, CEO, Arroyo Grande Hospital;
Diana Vavrek, Government & Public Affairs Representative, Chevron Oil Company;
Elizabeth Steinberg, Executive Director, Economic Opportunity Commission
In addition to the current Board of Directors, a number of individuals have been nominated to the
Board of Directors. Nominees include:
Carrol Pruett, President, Mid-State Bank
Stan Cherry, President, Santa Lucia National Bank
Vic Sterling, CEO, Southern California Gas Co.
Bob Griffin, President Griffin Hotels & President SLO Chamber of Commerce
Jack Penrod, CEO, SAES Gas
Lisa Chrzaszcz, General Manager, GTE Mobilnet
Ted Hall, Executive Director, IBEW Local Union #639
John French, Local Developer
One member each from the City Council of the incorporated cities in San Luis Obispo County
and one County Supervisor.
The current Board of Directors allows for twenty -five individuals. A number of the current Board
members will be stepping down when replaced by elected officials from the respective units of local
government.
The Economic Vitality Corporation has three primary missions:
1) Business retention and expansion
2) Business recruitment
3) Planning and technical assistance to the units of local government
The goals of the organization are measured by job retention and the creation of 1,000 new jobs over the
next three years. Local business retention and expansion goals will be met by the capitalization of a
$3,000,000 Revolving Loan Fund in three years. Technical assistance will be served through the
implementation of a Countywide Overall Economic Development Plan (OEPD) for San Luis Obispo
inclusive of the plans now formalized by each of the seven incorporated cities. The organization will also
work with the units of local government to secure grants and loans for public infrastructure projects.
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To date, private sector commitments to the Economic Vitality Corporation are in excess of $60,000
each year over a three year commitment. San Luis Obispo County funded $25,000 in General Fund
support for fiscal year 1996197. Units of local government will be asked to support the NON CDBG
ELIGIBLE activities of the EVC through annual sponsorships in the form of a contract for services.
These are the activities that are not related to lending of CDBG dollars. They include:
1) Support to develop a regional marketing campaign and printing of associated literature for
business recruitment.
2) Support for regional economic development planning and implementation.
3) Support to carry out business expansion goals of creating venture/seed capital investor
networks for newly emerging technology businesses.
4) Support to finance Small Business Assistance Center counseling services contracts with
Cuesta College.
5) Support to conduct private sector fundraising.
6) General administrative activities including the newsletter and annual reports.
7) Prorata share of general overhead for County -wide EVC effort.
(see Business Plan)
In support of the above listed activities, the units of local Government will be asked to consider the
following sponsorships via contract:
1) San Luis Obispo County
$ 25,000
2) San Luis Obispo City
$ 25,000
3) Paso Robles
$ 15,000
4) Atascadero
$ 15,000
5) Arroyo Grande
$ 10,000
6) Grover Beach
$ 5,000
7) Pismo Beach
$ 5,000
8) Morro Bay
$ 5,000
TOTAL: $105,000
It is proposed that the City of San Luis Obispo consider an annual contract for regional economic
development services to the EVC in the amount of $25,000 per year. This is based upon rough parity
in population and overall fiscal ability of the unit of local government.
Corresponding requests have been or will be made to all other incorporated cities and San Luis Obispo
County. San Luis Obispo County has granted a $25,000 general fund contribution to the EVC
organization for fiscal 1996/97. Contracts have been discussed with the Cities of Atascadero and
Grover Beach. Sponsorship with all the units of local government would be prorated over remaining
months in Fiscal 1996/97. If funding is not available this year, the EVC will request consideration of
monetary sponsorship participation for fiscal year 1997/98.
The total EVC budget for FY 1996/97 is $246,00 in revenue and $209,000 in expenditures. Please
refer to the enclosed "Operations and Implementation Element of the 1996 -97 Business Plan" for
specific budget information. The 1997/98 budget will be approximately $300,00 in revenue, with
$270,000 anticipated expenditures. A full -time Loan Officer will be added to staff in order to more
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effectively serve the anticipated expansion of "City" RLF loan financing (estimated at $800,000 for all
participating cities).
RECOMMENDATION:
It is the recommendation of the Economic Vitality Corporation Board of Directors that the City of San
Luis Obispo participate on the Board of Directors of the EVC. San Luis Obispo will be joining six other
incorporated municipalities and the County of San Luis Obispo County with public sector sponsorship.
The EVC's proposing to offer revolving loan fund services and technical resources to the businesses of
San Luis Obispo. This is a benefit not currently available. Loans for business retention and expansion
will add considerable value to the "in house" economic development activities now being provided. In
addition, the EVC will be coordinating County -wide business recruitment and expansion, adding leads
and marketing resources to San Luis Obispos' efforts. If the City of San Luis Obispo is in agreement
with the concept of a regional economic development approach, and as such, feels value will be
garnered, then we urge their participation and financial support.
OPTIONS:
1) City has the option of not participating financially in the regional economic development effort, not
being represented on the Board of Directors and quite possibly being the only City not represented.
2) City has the option of serving on the Board of Directors and not participating financially.
3) City has the option of participating financially and not serving on the Board of Directors.
4) Participate in the regional economic development effort financially and on the Board of Directors for
a period of three years in order to ascertain value and benefit to the City of San Luis Obispo.
I hope this information helps in preparation of your staff report.
Sincerely,
Greg win
President/CEO
Economic Vitality Corporation of San Luis Obispo County
cc: Susan Cotler (without enclosures)
Jane McVey (with enclosures)
Ken Hampian (with enclosures)
Enclosures: Joint Resolution
Agreement for Revolving Loan Fund Services
Agreement for Regional Economic Development Services
EVC Business Plan
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DRAFT #2 (12/5/96)
JOINT RESOLUTION BETWEEN
THE BOARD OF SUPERVISORS OF SAN LUIS OBISPO COUNTY
THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE
THE CITY COUNCIL OF THE CITY OF ATASCADERO
THE CITY COUNCIL OF THE CITY OF GROVER BEACH
THE CITY COUNCIL OF THE CITY OF MORRO BAY
THE CITY COUNCIL OF THE CITY OF PASO ROBLES
THE CITY COUNCIL OF THE CITY OF PISMO BEACH
THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
RES.
ARROYO GRANDE
RES.
) ATASCADERO
IN RE.
GROVER BEACH
RES.
MORRO BAY
RESOLUTION IN SUPPORT OF THE ECONOMIC
) PASO ROBLES
VITALITY CORPORATION OF SAN LUIS OBISPO
) PISMO BEACH
RES.
SAN LUIS OBISPO
COUNTY
)
SAN LUIS OBISPO COUNTY
RES.
NO.
RES.
NO.
RES.
NO.
RES.
NO.
RES.
NO.
RES.
NO.
RES.
NO.
RES.
NO.
WHEREAS, THE SAN LUIS OBISPO COUNTY BOARD OF SUPERVISORS AND THE CITY COUNCILS
OF ARROYO GRANDE, ATASCADERO, GROVER BEACH, MORRO BAY, PASO ROBLES, PISMO BEACH AND
SAN LUIS OBISPO support the Economic Vitality Corporation of San Luis Obispo County,
Inc. in the Central Coast region of California whose boundaries will be encompassed by
San Luis Obispo County;
WHEREAS, San Luis Obispo County and the incorporated municipalities agree to the
support of a broad based institution devoted to advancing the economic development of
the multi - jurisdicational area; and
WHEREAS, San Luis Obispo County and the incorporated municipalities agree to
work cooperatively to expand and diversify the economy in San Luis Obispo County and
to encourage and coordinate public and private investment for the creation of new
wealth and the generation of long term employment; and,
WHEREAS, the San Luis Obispo County Board of Supervisors and incorporated
municipalities have recognized the appropriateness of the county and the incorporated
cities to form a regional Economic Development Corporation and to administer such a
D
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DRAFT #2 (12/5/96)
Corporation in order to provide a basis for improved coordination and continuity of
federal, state and local activities relating to countywide economic development; and,
WHEREAS, San Luis Obispo County has designated the Economic Vitality Corporation
as a U.S. Department of Housing and Urban Development °Subrecepient" charged with
administering a Countywide revolving loan fund with primary lead responsibility to
conduct economic development activities that will benefit low and moderate income
residents of the County of San Luis Obispo; and,
WHEREAS, the Economic Development Administration (EDA) has authorized San Luis
Obispo County and the incorporated cities to pursue United States Department of
Commerce grants and loans eligible through the submission of annual Overall Economic
Development Plan (OEPD); and,
WHEREAS, the Economic Vitality Corporation is charged with the mission °to
stimulate the economic vitality of San Luis Obispo County, generate jobs and increase
financial investment within the County by promoting the retention, expansion and
attraction of business and industry to the area°;
NOW, THEREFORE BE IT RESOLVED, that the San Luis Obispo County Board of
Supervisors and the city councils of Arroyo Grande, Atascadero, Grover Beach, Morro
Bay, Paso Robles, Pismo Beach and San Luis Obispo support the Economic Vitality
Corporation (EVC) composed of the aforementioned government entities and the private
sector;
BE IT FURTHER RESOLVED, that the San Luis Obispo Board of Supervisors and the
city councils of the incorporated cities pledge to support the EVC through:
appointments and participation on the Board of Directors; annual financial
contributions for a period of not less than three years; and, that the San Luis Obispo
County Board of Supervisors shall designate the newly created Economic vitality
Corporation of San Luis Obispo County to serve as the coordinating agent for the San
Luis Obispo County Overall Economic Development Plan.
PASSED AND ADOPTED by the San Luis Obispo Board of Supervisors on this _day of
199_ by the following vote-
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DPW" #2 (12/5/96)
AYES: Supervisors
NOES:
ABSENT:
PASSED AND ADOPTED by the City Council of Arroyo Grande on this _day of
199_ by the following vote:
AYES: Councilpersons:
NOES:
ABSENT:
PASSED AND ADOPTED by the City Council of Atascadero on this _day
of 199_
by the following vote:
AYES: Councilpersons: ,
NOES:
ABSENT:
PASSED AND ADOPTED by the City Council of Grover Beach on this
_day of
199_ by the following vote:
AYES: Councilpersons:
NOES:
ABSENT:
PASSED AND ADOPTED by the City Council of Morro Bay on this _day
of 199_
by the following vote:
AYES: Councilpersons:
NOES:
ABSENT:
PASSED AND ADOPTED by the City Council of Paso Robles on this
_day of
199_ by the following vote:
AYES: Councilpersons: ,
NOES:
ABSENT:
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DRAFT #2 (12/5/96)
PASSED AND ADOPTED by the City Council of Pismo Beach on this _day Of — — -
199— by the following ivbte;
AYES: COuncilpersons: _ _ „_- • __
NOES:
ABSENT:
PASSED: .AND ADOPTED by the City Council of San Luis Obispo on this. ._day of,
399= by the.folloviing vote:
AYES: Councilpersons: - ---
NOES:
- ABSENT: -
COUNTY OF SAN LUIS OBISPO
Chairman
CITY OF ARROYO GRANDE
Mayor
CITY OF GROVER BEACH
Mayor
CITY OF PASO ROBLES
Mayor
CITY OF SAN LOTS OBISPO
Mayor
ATTEST:
Clerk of the San Luis Obispo
Board of Supervisors
Clerk
City Council
Arroyo Grande
Clerk
City Council
Grover Beach
Clerk
City Council
Paso Robles
Clerk
City Council
San Luis Obispo
CITY OF ATASCADERO
Mayor
CITY OF MORRO BAY
Mayor
CITY OF PISMO BEACH
Mayor
Clerk
City Council
Atascadero
Clerk
City Council
Morro Bay
Clerk
City Council
Pismo Beach
DRAFT #2 (12/5/96)
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DRAFT #1 (12/9/96)
AGREEMENT FOR REVOLVING LOAN FUND SERVICES
THIS AGREEMENT is made and entered into in San Luis Obispo, San Luis Obispo
County, CA, by and between the City of San Luis Obispo (City) and The Economic
Vitality Corporation of San Luis Obispo (Contractor), as follows:
RECITALS:
A. City is an eligible jurisdiction which has applied for and received approval of a Housing and
Community Development Block Grant from San Luis Obispo County in the amount of
$ hereinafter referred to as Block Grant, for the purpose of providing business
loans. Reference is hereby made to the Subrecepient Contract dated , attached
hereto and incorporated herein by reference. City desires to have Contractor administer the
Revolving Loan Fund of the Block Grant, provide all loan management services, and
administer the Reuse Program. Contractor is a California non - profit public benefit
corporation.
2. GRANT ADMINISTRATION SERVICES TO BE PERFORMED BY THE CONTRACTOR:
A. Contractor shall administer the City's Revolving Loan Fund Block Grant. Contractor shall be
responsible for the completion, administration and supervision of all tasks relating to the
administration of the Block Grant, including personnel, subcontractors, and subconsultants.
Contractor shall provide all such administration as may be necessary or appropriate to achieve
the Block Grant's stated objectives and terms and conditions, as specifically set forth in the
Subrecepient Agreement, dated and attached hereto and incorporated
herein by reference, as well as all representations contained in the City's application for said
Block Grant. Services to be performed may be modified with the mutual written consent of
the parties hereto.
B. The Contractor shall monitor employment of targeted income groups, submit financial and
performance reports, and manage grant activities according to 24 C.F.R., Sections 570.201
through 570.203 U.S. Department of Housing.
C. Contractor will maintain Block Grant records on behalf of the City during the term of this
Agreement in accordance with the requirements of the U.S. Department of Housing and
Urban Development. The City and any City - authorized agents will be provided such records
immediately upon written request to Contractor. Contractor will deliver to the City all
original records maintained by Contractor as part of this Agreement, within fifteen (15) days
if requested by City.
D. Contractor will maintain grant - related fiscal records in accordance with Title 24 Chapter V
C.F.R. U.S. Department of Housing and Urban Development and, OMB circular No. A -122.
Contractor will submit to City, quarterly performance reports, to include:
1. An assessment of compliance with the objective established by the Subrecepient
Agreement, dated attached hereto and incorporated herein by
reference. Further, in the event results of activities can be quantified, unit costs will
be reported
2. Recommendations for actions to be taken by City to resolve identified problems.
3. Recommendations for revising budget estimates if necessary; the grant
administration services shall commence upon execution of this Agreement and shall
conclude on the Community Development Block Grant closure date.
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DRAFT #1 (12/9196)
E. Contractor shall retain all books and records relevant to this contract for a minimum of three
years after the expiration of the contract and any and all amendments hereto or for three years
after the conclusion or resolution of any and all audits or litigation relevant to this contract,
whichever is later.
3. REUSE PROGRAM SERVICES TO BE PERFORMED BY THE CONTRACTOR
A. Contractor shall be responsible for the implementation and administration of a Reuse
program. Said program will utilize the proceeds from the repayment of loans made under the
grant to make additional loans. Said program shall comply will all applicable requirements of
the U.S. Department of Housing and Urban Development.
B. Upon the grant conditions being fulfilled and completion of its obligations pursuant to part 2
above, Contractor shall continue the administration of those loans made under City's Block
Grant program and shall continue to be responsible for the administration of the Reuse
Program.
4. LOAN MANAGEMENT SERVICES TO BE PERFORMED BY CONTRACTOR
A. Loan Management Services will include marketing, screening, and packaging of loans; credit
and gap financing analysis; and servicing - related functions such as appropriate filings
associated with disbursement of loan funds, and collections. In all cases, Contractor shall
comply with all requirements of the U.S. Department of Housing and Urban Development.
The services shall commence upon execution of this Agreement and shall conclude on the
CDBG closure date, or upon all grant conditions being fulfilled, whichever is sooner.
B. Contractor shall have the sole authority and responsibility for making loans, obtaining
adequate security, collecting payments and, when determined necessary, foreclosing on
defaulted obligations. For purposes of monitoring the loan activity and loan portfolio
performance, Contractor shall, upon request of City, provide loan information on loans made,
including the type of business, the purpose of the loan, and the classification of eligible
projects and activities.
COMPENSATION
A. Grant Administration Loan Management and Reuse Program Services, Contractor shall be
compensated by City at the hourly billable rate approved by City, for services rendered to
City for Loan Administration and Reuse program services of this Agreement. In no event
shall City's liability to Contractor for such administrative services exceed twenty (20)
percent of the total interest, fees and principal payments received during a twelve month
period. Billing rates are set forth in Attachment A attached hereto and incorporated herein
reference for general administration, UNLESS modified in accordance with Section 12.
Payment to the Contractor will be contingent upon receipt of funds designated for that
purpose.
B. Compensation for loan administration and Reuse program due under this Agreement shall be
payable by City within 30 days after Contractor submits an invoice for services.
6. TERMINATION
This Agreement may be terminated by either party upon thirty (30) days prior written notice.
Upon termination, Contractor shall be compensated for all services rendered in conformance with
this agreement up to the date of termination.
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DRAFT #1 (12/9/96)
INDEPENDENT CONTRACTOR:
A. No relationship of employer and employee is created by this agreement, it being understood
that Contractor will act hereunder as an independent contractor and that the officers,
employees, and agents of the Contractor shall not have any claim under this Agreement
against City for vacation pay, sick leave, retirement benefits, social security, workers
compensation, disability, unemployment insurance benefits, or employee benefits of any
kind, the parties acknowledge and understand that Contractor is a separate entity from City
and that the officers, employees, and agents of Contractor in the performance of this
agreement shall act in a independent capacity and not as officers, employees, or agents of
City.
B. Contractor shall be responsible to pay all required taxes and obligations and benefits of every
kind including social security and withholding taxes and unemployment insurance in
connection with all services rendered pursuant to this Agreement. Contractor shall indemnify
and hold City harmless of any and all liability which City may incur to the federal or state
governments as a consequence of this Agreement.
C. Contractor, by virtue of this Agreement, has no authority to bind or incur any obligation on
behalf of City.
8. INDEMNIFICATION:
Contractor shall indemnify, defend, and hold harmless City and its officers, employees, and agents
against all liabilities, claims, demands, damages, and costs (including attorney's fees and litigation
costs) that arise in any way from Contractor's acts or omissions while performing under this
agreement. Contractor's obligations under this section cover but are not limited to liabilities,
claims, demands, and costs arising from injury to or death of any persons (including City's
officers, employees, and agents) and from damage to or destruction of any property (including
City's real and personal property).
WORKERS COMPENSATION:
Contractor shall provide worker's compensation insurance coverage, in legally required amount,
for all Contractor employees utilized in providing work and services pursuant to this Agreement.
Contractor acknowledges its obligations and responsibilities to its employees under the California
Labor Code and warrants that Contractor will comply during the time of this Agreement with all
provisions of the California Labor Code with regard to its employees. Contractor, at the time of
execution of this Agreement, will provide City with evidence of the required Worker's
Compensation insurance coverage.
10. GOVERNING LAW:
This Agreement shall be governed by the laws of the State of California.
11. NOTICE:
Whenever notice to a party is required by this Contract, it shall be deemed given when deposited
with proper address and postage in the U.S. Mail or when personally delivered as follows:
City:
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
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Contractor:
Economic Vitality Corporation of San Luis Obispo
P.O. Box 5257
San Luis Obispo, CA 93401
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DRAFT #1 (12/9/96)
12. COMPLETE AGREEMENT: AMENDMENT:
This Agreement together with exhibits attached thereto, expresses the understandings of the
parties concerning all matters covered and supersedes all prior negotiations, representations, or
Agreements, either written or oral. No additions to, or alterations of the terms of this contract,
whether by written or verbal understanding of the parties, their officers, agents or employees, shall
be valid unless made in the form of a written amendment of this contract and formally approved
by the parties.
Any and all existing statements or agreements, whether oral or written, or renewals thereof,
between the parties hereto, covering the same subject matter, are hereby canceled and superseded
by this Agreement and such prior agreements shall have no further force or effect.
13. DUPLICATE ORIGINALS:
This agreement may be executed in one or more duplicate originals bearing the original signature
of both parties and when so executed any such duplicate original shall be admissible as proof of
the existence and terms of the Agreement of the parties.
14. TERM OF CONTRACT:
The effective date of this Contract shall be The Contract shall terminate
on . Contract will be automatically renewed on an annual basis for one
(1) year periods unless either parry gives notice of termination as delineated in Section 5 of this
Agreement.
IN WITNESS WHEREOF, CITY AND CONTRACTOR have executed this Agreement on the
day and year written below.
THE ECONOMIC VITALITY CORPORATION OF SAN LUIS OBISPO COUNTY
Gregg Goodwin, President/CEO
CITY OF SAN LUIS OBISPO
John Dunn, City Manager
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Date
Date
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DRAFT #1 (12/9/96)
AGREEMENT FOR ECONOMIC DEVELOPMENT SERVICES
THIS AGREEMENT, effective is entered into by and between the City of San Luis
Obispo, a municipal corporation (hereinafter referred to a "City"), and the Economic Vitality Corporation
of San Luis Obispo County, a non - profit corporation (hereinafter referred to as "EVC ").
WITNESSETH
WHEREAS, the incorporated cities of San Luis Obispo County have agreed to participate and support the
establishment of a regional economic development effort.
WHEREAS, the City of San Luis Obispo desires to diversify and expand its industrial, retail, commercial,
recreational and general business services economic base; and
WHEREAS, the Economic Vitality Corporation of San Luis Obispo County is charged with the mission "to
stimulate the economic vitality of San Luis Obispo County, generate jobs and increase financial investment
within the County by promoting the retention, expansion and attraction of business and industry to the
area "; and
WHEREAS, the EVC is organized for such economic development activities on behalf of the City and in a
position to accomplish such goals and purposes of the City in an efficient and economical manner; and
WHEREAS, the Government Code of State of California authorizes the expenditure of public funds by a
municipal corporation for economic development activities as therein provided.
NOW THEREFORE, in consideration of the premises and covenants and promises hereinafter set forth, the
parties hereto hereby agree as follows:
I. That the foregoing recitals are true and correct and constitute statements of fact herein.
2. EVC shall cant' on regional economic development activities as follows:
a. Employ competent personnel to carry on regional economic development activities
herein enumerated.
b. To assist in the development of job, employment, training and business
opportunities for residents of San Luis Obispo and San Luis Obispo County,
especially for targeted low and moderate income residents; through the attraction,
retention and expansion of private sector firms.
c. To assist in the planning and management of economic development implementation
activities, programs and projects which would attract and create new firms, and
retain and expand existing businesses, including but not limited to those owned by
targeted low and moderate income residents of San Luis Obispo and San Luis
Obispo County.
d. To assist in the preparation and annual update of an economic vision or economic
policy for San Luis Obispo and San Luis Obispo County which may include by not
be limited to an Overall Economic Development Program, and Economic Element of
the General Plan, and other comprehensive economic development policies,
strategies, needs assessments, etc.
e. To assist in the establishment and support of forums and other mechanisms for
maximum feasible participation of residents and stakeholders in the formulation of
economic development policy and program recommendations.
f. To assist in the preparation and submittal of applications on behalf of the City of San
Luis Obispo and/or participating agencies to public and private funding sources for
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financing, and/or to state and federal agencies for special designations, in support of
economic, business and employment development activities.
g. To assist in providing research, analysis and recommendations to the Economic
Advisory Committee, to government agencies and private organizations on
economic development.
h. To provide appropriate county -wide business marketing, recruitment, and attraction
activities and to liaison with appropriate local, regional, state and federal agencies
and private parties.
i. To assist in the development and management of coordinated, competitive program
of business incentives to expand, retain and attract desirable firms, including
incubators, business parks to accommodate space needs, loan funds to provide
financing, employee recruitment and training, technical and management assistance.
3. EVC shall furnish semi - annual reports of its activities to City, which shall consist of the
activities scheduled for the next six succeeding months and a review of the activities
accomplished during the proceeding six months. Said reports shall include a detailed
breakdown of all activities.
4. The amount of the contract shall be $ paid annually and approved by the City
Council, and may be amended by Resolution of the Council from time to time. The amount
shall be allocated as follows: one -half shall be paid in advance in January (or immediately
after the City's annual budget is adopted, whichever is later) and the balance due in July of
the same fiscal year.
5. This agreement shall become effective on the date of execution hereof by both parties, and
shall. continue in effect until June 30, 1998; provided, however, that this Agreement shall be
automatically renewed each year hereafter, for periods of one year, commencing July 1
though June 30 of the succeeding year, by action of the City Council budgeting funds as
provided in Paragraph 4 hereof, and EVC's acceptance thereof of said budget allocation.
6. This agreement may be amended or modified only by written agreement signed by both
parties, with the exception of the procedure outlined in Paragraph 4. Failure on the part of
either parry to enforce any provision of this Agreement shall be construed as a waiver of the
right to compel enforcement of such provision or provisions.
7. It is understood that the contractual relationship of EVC to City is that of independent
contractor.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in
duplicate on the date indicated below.
Dated:
ATTEST:
BONNIE GAWF, City Clerk
APPROVED AS TO FORM:
JEFF JORGENSEN, City Attorney
SLOCityagmt
CITY OF SAN LUIS OBISPO
ALAN SETTLE, Mayor
ECONOMIC VITALITY CORPORATION OF
SAN LUIS OBISPO COUNTY
GREGG GOODWIN, President/CEO
S-!(
DRAFT #1 (12/9/96)
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA
AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH
ECONOMIC VITALITY CORPORATION OF SAN LUIS OBISPO COUNTY
TO
PROVIDE ECONOMIC DEVELOPMENT SERVICES
The City Council of the City of San Luis Obispo, California, hereby resolves as follows:
1. The City Manager is hereby authorized to execute an agreement with: the Economic Vitality
Corporation to provide Economic Development Services, and all other agreements or
documents required to effectuate the terms of agreement.
2. The City Manager is hereby authorized to make minor corrections or modifications of a
mathematical or clerical nature.
3. The Finance Director is hereby authorized to: appropriate funds, if necessary, release and
expend funds; and issue warrants to comply with the terms of this agreement.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of San Luis
Obispo held on the
CITY OF SAN LUIS OBISPO
By:
ALAN SETTLE, Mayor
ATTEST:
BONNIE GAWF, City Clerk
SLOCityaunt
'50 or
Economic Vitality Corporation
of San Luis Obispo County
ECONOMIC VITALITY
CORPORATION
Operations And Implementation
Element
Of
1996/1997
Business Plan
October 1996
P.O. Box 5257 • San Luis Obispo • California 93403 ■ Phone: 805.782.9156
5.11
TABLE OF CONTENTS
Introduction / Mission Statement ............ ..............................2
Objectives 1996/ 97 ................................. ..............................3
Highlights of 1996/97 Business Plan ....... ..............................4
Business Retention Plan ......................... ..............................5
Business Recruitment Plan ...................... ..............................7
Regional Planning &Technical Assistance Plan .....................8
The Marketing Program ......................... ..............................9
Advertising................................. ..............................9
Corporate Visitations .................. ..............................9
Publications................................ ..............................9
TradeShows .............................. ..............................9
Events.................................................... .............................10
Board of Directors Meetings
Economic Vitality Sponsor Breakfast
Annual Sponsorship Meeting
Board Retreat
Golf Tournament
Committee Representatives / Responsibilities ..........................11
1
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S,zD
INTRODUCTION
The Economic Vitality Corporation of San Luis Obispo County (EVC) has crafted this 1996/97
Operations and Implementation Element to clarify the 1996 -97 Business Plan. This element
summarizes the activities planned for fiscal year 1996/97 and emphasizes program activities and
events designed to support our Mission:
"To stimulate the economic vitality of San Luis Obispo County, generate
jobs and increase financial investment within the County by promoting
the retention, expansion and attraction of business and industry to the
area ".
The EVC is a non -profit 501 (c)(3) economic development organization working with the eight
area local governments, educational institutions, job training programs and the private business
sector. Contributions or gifts to the EVC are tax deductible as charitable contributions for federal
income tax purposes. In addition, sponsorships may be deductible as ordinary and necessary
business expenses.
2
Plan6.19
OBJECTIVES 1996/97
The Economic Vitality Corporation's Board of Director's developed measurable objectives to be
accomplished within one year. These initial objectives will continue to guide the EVC's efforts
for 1996/97.
Consolidate a community Revolving Loan Fund for existing and new businesses. Secure
one million dollars, from State and Federal Grant Sources.
Establish US Department of Commerce, Economic Development Administration Title IX
Revolving Loan Funds in the amount of $500,000.
• Loan $500,000 to area businesses.
• Create 350 new jobs.
Assist ten area businesses in retention/expansion.
• Support and assist in the establishment of a stand alone Small Business Development
Center at Cuesta College.
Assist in business expansion through financial and technical aid.
• Analyze local business needs through the implementation of a business survey.
• Contract with San Luis Obispo County to develop the Annual Overall Economic
Development Plan for submission to the U.S. Department of Commerce, Economic
Development Administration.
• Offer a consolidated grant writing program to assist local governments.
• Establish marketing programs including advertising to attract businesses to the San Luis
Obispo County area, and to promote the EVC to the community.
Establish Memorandas of Understanding (MOU's) with the Private Industry Council
(PIC); Cuesta College; Cal Poly; units of local governments; Chambers of Commerce;
and, other similar organizations to formally clarify economic responsibilities involving job
training, business development, business finance counseling, high technology business
incubators, marketing etc.
3
PIm6.19
S-,23
HIGHLIGHTS OF OPERATIONS AND IMPLEMENTATION ELEMENT
OF 1996/97 BUSINESS PLAN
Business Retention Plan
• 3 year goal of creation of 1,000 new jobs.
• 3 year goal of establishing a $3,000,000 Revolving Loan Fund.
Business Recruitment/Attraction Plan
• 3 year goal of Business Attraction through Cooperative Marketing Partnerships.
Regional Planning/Technical Assistance
• Grant writing for units of local Government.
• County Wide Economic Development Planning.
Ties to Local Government
• Business leads and inquiry sharing from information furnished by The Department of
Trade & Commerce.
Provide information forums (two per year for each unit of local government).
• Create Regional community marketing partnerships.
• Increased communication and cooperation with units of local government.
Goal of unanimous support of local governing agencies.
Ties to Private Sector
• Goal of 100 private sector sponsors
Marketing
• Promote lending activity (with brochures and community outreach).
Cooperative advertising.
• Computer database of industrial and commercial inventories.
Internet web page.
Events
• Annual meeting featuring assisted companies.
• February Economic Vitality Sponsorship Breakfast.
Plant Tours of area businesses.
• Annual Golf Tournament.
4
Pbn6.19
EVC BUSINESS RETENTION PLAN
The primary activity of the Economic Vitality Corporation is that of business retention in the San
Luis Obispo County region. Business retention is an activity which assists local businesses in
expansion and increased profitability. Existing companies are the primary creators of new jobs for
the San Luis Obispo County region. It is estimated that 80% of all new jobs created will be
created by existing companies that are expanding operations. In this light,the Economic Vitality
Corporation has focused its primary resources on business retention and expansion related
activities.
Business Retention falls into three major categories: (1) Business Lending, (2) Business Support
Services (3) Information & Referral Services
(1) BUSINESS LENDING
Objectives:
• Loan 100% of secured $500,000 Community Development Block Grant (CDBG)
funding in fiscal 1996/97.
• Secure Rural Development Services (RDS) funding in the amount of $1,000,000.
• Secure $500,000 in Economic Development Administration (EDA) funding in year one.
Strategies:
Print new brochures in English, Spanish, and target banks and minority organizations for
distribution.
• Set up loan officer meeting and visitation campaign.
• Finalize universal loan agreement.
• Finalize sub - recipient agreements with units of local government. .
• Advertise loan program through service organizations, press releases, electronic media.
Include Board of Realtors, Chamber of Commerce mailings, and City /County mailings.
(2) BUSINESS SUPPORT SERVICES
Objectives:
Contact area businesses to ascertain job training, business retention and expansion
needs.
Strategies:
• Create and mail business questionnaire.
• Train volunteers for interviews.
• Press releases prior to visitation and survey mailing.
• Face to face business interviews.
• Create new four page brochure "San Luis Obispo County Region/Statistical Profile".
5
Plao6.19
.5-,7�
• Create manufacturers directory on disk.
• Utilize wage survey by Private Industry Council on disk.
• Secure Memoranda of Understanding with Private Industry Council, Cuesta College, Cal
Poly & Employment Development Department.
(3) ESTABLISH AN INFORMATION AND REFERRAL SERVICE
Objectives:
• Create information library.
• Create home page on the Internet.
• Expand newsletter recipient list.
• Create Sponsorship brochure.
Keep local government informed.
Strategies:
• Announce resources in local media.
• Act as a central clearing house for business referrals.
• Use new business retention and survey information.
• Develop marketing program to enhance EVC message through our newsletter and
brochures.
• Make bi- annual presentations to all units of local government.
• Partner with job training organizations and other economic development organizations in
the Central Coast region.
Issue press releases and draft articles on EVC successes.
0
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S -024
EVC BUSINESS RECRUITMENT PLAN
The Economic Vitality Corporation will attempt to generate interest in the region through a
cooperative marketing program. The business recruitment approach will be one that will partner
with California Trade and Commerce, Central Coast Marketing, (a marketing group consisting of
Monterey County, San Luis Obispo County & Northern Santa Barbara County), local job training
organizations, units of local government, and the private sector.
Objectives:
The Economic Vitality Corporation will provide information about the area to potential
clients. A new regional publication will be created to highlight resources currently
available in the San Luis Obispo County region, how they are managed, their costs, and
their accessibility. While the Economic Vitality Corporation will encourage firms to
locate in the region, it should be noted that companies will make their site selection based
upon the firms' particular needs, and not upon recommendations, or direction given by
the EVC. Wherever appropriate, business and public leaders will be called upon to assist
with prospect management and location.
Strategies:
The Economic Vitality Corporation will make every effort to fairly represent the county
and seven city units of local government and to objectively present the region to all
companies. The following activities will be undertaken:
• All inquiries will be answered within 48 hours.
• All customized packages will be completed within 5 working days of inquiry.
• All active prospects will be contacted on a quarterly basis.
The EVC will partner with the job training organizations.
• The EVC will develop a marketing plan in coordination with units of local government
for their respective development projects.
• The EVC will maintain Sponsorship in the Central Coast Marketing Group, and the
Chambers of Commerce, CALED (California Economic Development Association) and
the American Economic Development Councils.
Advertising will be developed through cooperative ad buys with the private sector and
public partnerships.
A new economic profile will be printed highlighting the San Luis Obispo County region.
• All San Luis Obispo area commercial real estate brokers will be added to
the newsletter list.
• The EVC will attend trade shows and business visitation missions in coordination with
Team California, and The Central Coast Marketing Group.
• If grant funding is available, the EVC will strive to develop a computer based industrial
and commercial/retail inventory for the San Luis Obispo County region.
• The EVC will develop a real estate video on the region in cooperation with area real
estate and development interests.
PIan6.19
7
,5-.27
REGIONAL PLANNING AND TECHNICAL ASSISTANCE FOR LOCAL
GOVERNMENT
Objectives:
• Assist with economic development projects for Arroyo Grande, Atascadero, Grover
Beach, Morro Bay, Paso Robles, Pismo Beach and San Luis Obispo.
Support various community marketing needs.
Assist in the establishment of a High Tech business incubator to the region.
• Contract with San Luis Obispo County to develop Annual Overall Economic
Development Plan and Economic Element for General Plan.
Strategies:
• Assist with Strategic Planning and specific requests from requested communities.
• Provide limited cooperative financial assistance to community marketing efforts.
• Support the establishment of a stand -alone Small Business Development Center with
Cuesta College.
• Assist Cal Poly in planning and implementing the development of a `Research Park' and
technology business incubator.
Plan6.19
Eve
THE EVC MARKETING PROGRAM
The Economic Vitality Corporation has worked to establish a comprehensive marketing program
based upon conservative estimates of resource expenditures and maximum impact from the use of
public and private funds. The marketing strategies include the following elements: business
retention; business attraction; information and referral services; community marketing
partnerships; and direct advertising. A summarized marketing program is as follows:
Objective:
Make businesses located outside of the San Luis Obispo County aware of the region.
Strategies:
Develop cooperative advertising vehicles to attract businesses to the region.
ADVERTISING
• Develop Cooperative advertising purchases with Central Coast Marketing Group, Team
California, VCB and Chamber publications, local units of Government for years 2 and 3.
• Develop advertising directed toward Targeted Industry Clusters.
BUSINESS VISITATIONS
• Annual corporate visitations with Central Coast Marketing Group scheduled for Fall of
1996 and Spring of 1997.
• Corporate visitation scheduled for marketing trips to the Bay Area and to Los Angeles.
PUBLICATIONS
• Expansion of newsletter to all 3,000+ area businesses in the San Luis Obispo County
region in addition to commercial real estate brokers.
• Creation of new Sponsorship brochure.
Creation of a Home page for Internet.
• Marketing video for San Luis Obispo region.
• Computer based industrial and commercial inventory listing.
New regional economic profile.
• New statistical survey report.
• Utilization of wage survey on CD ROM from the Private Industry Council.
• Creation of manufacturers directory on disk.
TRADE SHOWS
• Attend International Food Processing trade show, October1997 in conjunction with
Team California.
W,
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,S-A?
EVENTS
August 29, 1996
Board of Directors Meeting
September 1996
Hire new President/CEO
October 30, 1996
Board of Directors Meeting
December 18, 1996
Board of Directors Meeting
February 1997
Sponsorship Breakfast - This annual meeting includes a keynote speaker presentation and
distribution of information on the region's economy, and is an annual get together for local area
business leaders.
February 26, 1997
Board of Directors Meeting
April 23, 1997
Board of Directors Meeting
May 1997
Annual Sponsorship Meeting - an annual reception at an interesting historic place in the
San Luis Obispo County region. This meeting is held to inform the Sponsorship of the
economic growth experienced in the community over the previous year and to keep the
lines of communication open between the Board of Directors and sponsors of the
corporation. As per the bylaws, during this meeting new corporate officers are appointed.
This event held in May of each year provides an opportunity for sponsors and guests to
network and make new contacts.
June 1997
Annual Board of Directors.Retreat and Board meeting - This is the annual planning
retreat of the Economic Vitality Corporation. It is designed to review the previous
year's activities, to set the plan of work and approve the Overall Economic Development
Plan for the upcoming fiscal year.
10
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5-150
EVC COMMITTEE
REPRESENTATIVES /RESPONSIBILITIES
EXECUTIVE COMMITTEE
CHAIR: Dr. Susan Cotler
The purpose of the Executive Committee is to carry out the programs established by the
Board of Directors, to conduct the business of the corporation between regular meetings
of the Board, to coordinate all standing committee efforts to accomplish the EVC
Business Plan, and to provide general direction to the EVC staff when needed.
ECONOMIC VITALITY COMMITTEE
CHAIR: Leslie Ramsey
The purpose of the Economic Vitality Committee is to work closely with the President of
the corporation in identifying business retention, expansion, and attraction or creation
opportunities, giving priority to those economic opportunities that contribute to new job
creation for county residents.
NOMINATING COMMITTEE
CHAIR: Dr. Susan Cotler
The purpose of the Nominating Committee is to nominate candidates to the EVC Board
of Directors, prepare the slate of officers for the Annual Meeting, recommend board
members needed as representatives to other groups, and review policies and procedures
in the EVC Bylaws relative to board member duties and terms of office.
COMMUNITY PREPAREDNESS COMMITTEE
CHAIR: Missie Hobson
The purpose of the Community Preparedness Committee is to advocate, coordinate, and
collaborate with local economic development individuals, organizations and local
government representatives to develop a state of readiness that will allow the community
to immediately respond to a businessrob creation opportunity. This will include an
inventory of identified sites with related infrastructure, a streamlined regulatory system in
place, and process to coordinate efforts to meet the business needs of prospective EVC
clients.
11
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'S-1/
RESOURCE COMMITTEE
CHAIR: Lee Ferrero
The purpose of the Resource Committee is to identify, compile, and maintain information
on community resources which will insure coordination, collaboration, and leveraging of
services for the creation of new jobs which will meet the needs of individuals and groups
in the community. The committee will focus on coordinating programs to assist
individuals in their job pursuits to assist business in creating or retaining jobs.
FINANCE COMMITTEE
CHAIR: Wayne Longcrier
The purpose of the Finance Committee is to oversee proper management of all EVC
financial services, including: (1) EVC Budget and Accounting functions; (2) Investment,
with two sub -parts (a) Sponsorship Development and funding, and (b) Investment
Management; and (3) administration of the EVC Revolving Loan Fund (RLF) in close
coordination with the RLF Committee.
PUBLIC RELATIONS AND PUBLISHING COMMITTEE
CHAIR:
The purpose of the Public Relations and Publishing Committee is to direct and initiate
promotional policy and direction for the EVC and its county -wide economic programs.
Publish a quarterly newsletter and host/manage all special events i.e., Sponsorship
Breakfast, Annual Meeting, and other Special Events.
12
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S -302-
r
�ji
year
Revenue
County Contract
Economic Develop. Element
Activity Delivery, CDBG
Grant application fees
Loan Fund Pass Thru
Loan Packaging Fees
Administrative Expenses
Auto Expense
Accounting
Legal
Postage
Telephone
Professional fees
Travel
Janitorial
Mileage Reimbursement
Office supplies
Rent
Taxes & Insurance
Relocation Expense
Business expenses
Total
Advertising
Dues & Subscriptions
Newsletter Postage
Promo Materials
Marketing services
Annual Event -Golf Toum
Annual Sponsorship mtg
Local Mtgs/PR
Sponsorship Drive
EVC 1996/97 PROPOSED BUDGET
77,000.
4,000.
4,176.00
5,000.00
1,000.00
3,000.00
5,000.00
38,000.00
2,500.00
0.00
1,000.00
7,500.00
4,000.00
8,000.00
7,000.00
1,800.00
1,000.00
88,976.00
0.00
3,000.00
3,000.00
6,000.00
2,000.0(
2,000.0(
16,000.0(
1,000.01
2,000.00
Page 1
1998
Total
S'3 j/
EVC 1996/97 PROPOSED BUDGET
Payroll
Temp Staff
9,000.00
COMP 4038 Contr
-
COMP FICA
6,650.00
Executive Direct
59,375.00
Health & Other
2,850.00
Incentive Loan Officer
Loan Officer
-
Office Manager
17,000.00
Performance Incentive
-
Total Payroll
94 875.00
Total Expense
209, 651.00
Net Revenue From Operations
36 349.00
Other Income
Interest Income
1,000.00
Fees
-
Publications
-
Total Other Income
1,000.00
Operating Reserves
29,500.00
Office Equipment
7,500.00
TOTAL NET REVENUE
349.00
Page 2
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