Agenda Information Sheet
DEPARTMENT: Economic Development
CM/ ACM: Jon Fortune
Date: September 20, 2016
SUBJECT
Title
Consider adoption of an ordinance approving an agreement between the City of Denton, Texas, and the Denton Chamber of Commerce regarding an Economic Development Partnership; and providing an effective date [$238,836.00].
Body
BACKGROUND
The City Council and the Denton Chamber of Commerce first entered into an economic development partnership agreement in 1986. The attached contract represents the 2016-17 annual agreement and funding for the Denton Chamber of Commerce Economic Development program.
The City’s participation consists of General Fund and Utility Fund dollars and provides for the administration and operation budget of the Chamber of Commerce that includes:
• Prospect generation activities
• Marketing activities, i.e. trade shows, publishing/printing, website administration, marketing materials
• Economic Development Partnership Board support
• Small Business Development Center support
In addition to City funds, the Chamber of Commerce solicits $64,000 in private-sector funding to enhance economic development efforts.
In January 2016, the City’s Department of Development Services and the Chamber’s Office of Economic Development commissioned the Novaces Agile Economic Development consulting report, which recommended certain changes to the responsibilities of the City of Denton and the Denton Chamber of Commerce under the Denton Economic Development Partnership. These changes included:
• Shifting the responsibility for request for proposals (RFP) preparation from the Chamber to the City;
• The Chamber instituting the use of a “marketing scorecard” to gauge the effectiveness of its marketing activities;
• The City and Chamber jointly using a customer relationship management program to streamline communications and share prospect information.
The report and its recommendations were presented to the Economic Development Partnership Board on July 13, 2016. After its discussion, the EDP Board directed staff to move forward with implementing the above changes. City and Chamber staff have had several discussions/meetings since then about implementing the changes, including how such changes will be reflected in the FY 2016-17 Economic Development Program Agreement (the annual contract) between the City and the Chamber.
On August 23, 2016, as part of its budget deliberations, the City Council requested a work session regarding the current Economic Development Program Agreement between the City and the Chamber and the changes proposed for the FY 2016-17 Economic Development Program Agreement. After its discussion, the Council directed staff to move forward with changes to the agreement as outlined above.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
August 23, 2016 - City Council work session on FY 2016-17 Economic Development Program Agreement
July 13, 2016 - Economic Development Partnership Board work session on Novaces Agile Economic Development consulting report
May 11, 2016 - Economic Development Partnership Board recommends approval of both the Chamber of Commerce Office of Economic Development Budget and the City’s Division of Economic Development Budget
FISCAL INFORMATION
The funding for this contract is included in FY 2016-17 budget in the Economic Development division of the general Fund in the amount of $62,897 and the remaining $175,939 is budgeted in the City’s Utility Funds.
STRATEGIC PLAN RELATIONSHIP
The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Economic Development
Related Goal: 3.4 Encourage development, redevelopment, recruitment, and retention
EXHIBITS
Exhibit 1 - Ordinance
Exhibit 2 - FY 2016-17 Economic Development Program Agreement
Respectfully submitted:
Caroline Booth
Assistant Director for Economic Development