Broken Arrow Economic Development Authority
Meeting of: 07-15-2024
Title:
title
Consideration, discussion, and possible approval of and authorization to execute a Contract for Economic Development Services between the Broken Arrow Economic Development Authority and the Broken Arrow Economic Development Corporation
End
Background:
The Broken Arrow Economic Development Authority contracts with the Broken Arrow Economic Development Corporation annually to encourage and facilitate economic development within and near the City of Broken Arrow by attracting new industry and commercial businesses to the Broken Arrow area, and to promote the economic health and expansion of existing industry and commercial businesses within the City.
In preparation for a contract renewal, city staff has worked to refine the scope of services with EDC board members: Chair Greg Graham, Vice Chair Brandy Moore, Past Chair Davis Robson, and At-Large Member Ted Cundiff. The members worked with staff to better define scope of services and add clarifying language.
Major changes to the Contract include the deletion of Tourism services, the addition of a cure clause, changes to the dates for the bi-annual presentations and quarterly the BAEDC will provide a detailed report of the items where BAEDA funding has been spent.
Per the Economic Development Agreement, each month BAEDC shall submit a Monthly Activity Report detailing services and activities that accurately state the progress made in implementing the terms, conditions and scope of work required by the Contract.
It is proposed that in the first and second years of the contract respectively, BAEDC will receive $425,000 annually, subject to annual appropriations. This calculates to $35,416.66 per month for the first twenty-four (24) months of the contract.
It is also proposed that at the end of the second year, the City Manager will conduct a performance review. Provided that expectations have been met satisfactorily, an increase in the contract amount will be recommended, in an amount not to exceed 10% of the original contract amount for the remaining year. If an increase is not recommended and approved, the contract amount will remain at $425,000 ($35,416.66 monthly) for the last twelve (12) months of the contract, subject to annual appropriations.
Furthermore, it is understood that the BAEDC currently employs five (5) full-time employees including the CEO. It is proposed that starting August 1, 2024, if the BAEDC employs fewer than five (5) employees continuously for more than forty-five (45) days, a reduction equal to 1/12th of the base salary of each vacant position(s) will be deducted from the payment due. This reduction will commence on the first requested invoice date following the forty-five (45) day vacancy and will continue monthly until the first requested invoice after the position(s) is filled.
Cost: $35,416.66 monthly - July 2024 through June 30, 2025
Funding Source: Broken Arrow Economic Development Authority
Requested By: Jennifer Rush, Economic Development Director
Approved By: City Manager’s Office
Attachments: Proposed Contract between Broken Arrow Economic Development Authority and Broken Arrow Economic Development Corporation
Recommendation:
recommend
Approve and authorize an execution of a Contract for Economic Development Services between the Broken Arrow Economic Development Authority and the Broken Arrow Economic Development Corporation
end