Agenda - Economic Development Authority - 06/14/2012

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Economic Development Authority (EDA) 4. 1. Meeting Date: 06/14/2012 Submitted For: Kurt Ulrich By: Patrick Brama, Administrative Services Title: Review contract for services with ACG Background: As the City continues to use the firm of Advance Consulting Group (ACG) (represented by Mike Mulrooney) for economic development consulting services, staff would like to review the compensation structure of this relationship. The purpose of this case is to review the attached proposal for expanded level of services from ACG. In summary, two options are being presented to the EDA (1) continue a per hour charge for services (2) begin a monthly retainer for up to 28 hours of service --flat fee. Observations: As a result of recent staffing reductions, the duties and responsibilities of the previous Economic Development/Marketing Manager position have been divided between the City Administrator, City Management Analyst and the Advance Consulting Group (ACG). City staff members have taken on day-to-day economic development activities. For example, answering inquiries, completing required reporting, coordinating events and conducting research. ACG has taken on the responsibility of responding to high level/high importance economic development inquires and shepherding leads. For example, when a business would like an assistance proposal or detailed information on economic development tools and programs available ACG is there to respond. The cost of services billed by ACG in April and May were $1,000 and $1,500 respectively. Staff expects the cost of services provided by ACG in the future to be between $1,500-$2,000 per month on average. The estimated costs for ACG services for the remainder of the year is $12,000-$14,000. Funding Source: EDA Miscellaneous Professional Services Account--9230.6315. $44,000 budgeted in 2012 $11,000 YTD in 2012 (expected cost for the remainder of the year: $12,000-14,000). Staff Recommendation: Continue a per hour charge compensation structure for services from ACG until the monthly cost of services regularily approaches the retainer amount ($3,750 per month); at which time staff would bring this item back for EDA consideration. This contract with be ongoing and would be adjusted if the Council authorized additional economic development staffing in the future. Such consideration is under review with the 2013 budget. EDA Action: Continue a per hour charge compensation structure for services from ACG until the monthly cost of services approaches the retainer amount ($3,750 per month); at which time staff shall bring back this item back for EDA consideration . Attachments Advance Consulting Group Proposal for Expanded Level of Service