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HomeMy WebLinkAboutMemoranda of Understanding with various entities for a portion of fees for Site Selector Project1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Director of Economic Development and Community Relations Chris Kukulski, City Manager SUBJECT: Authorize the City Manager to sign Memoranda of Understanding with various agencies and entities including Prospera Business Network, Gallatin County, Park County, the City of Livingston and Gene Cook Realty Gallatin Association of Realtors (GAR) detailing the relationship and obligations for payment of a portion of fees to the City of Bozeman for the Site Selector Project for a two-year period from the date of the execution of a signed contract between the City of Bozeman and GCS Research. MEETING DATE: January 17, 2012 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager to sign Memoranda of Understanding between the City of Bozeman and 1) Prospera Business Network; 2) Gallatin County, MT; 3) Park County, MT 4); City of Livingston, MT; and 5) Tom Starner representing Gene Cook Realty Gallatin Association of Realtors detailing the relationship and obligations for payment of a portion of fees to the City of Bozeman for the Site Selector Project for a two-year period. BACKGROUND: Resulting from City Commission and Economic Development Council (EDC) direction through their respective plans and priorities, i.e., the City’s Economic Development Plan and the EDC’s Priorities and Recommendations, and as early as October, 2010, City staff, along with their local and regional partners began exploring solutions to address what we lack in a single, coordinated, local and national Geographical Information System (GIS) driven by the needs of local entrepreneurs and businesses. The inclusion of local and national GIS data, local commercial realtor listings and local business counseling opportunities into the Site Selector project provides a dynamic and powerful tool to any business person, established or otherwise, seeking knowledge in order to make sound business decisions. A fundamental principle of our Economic Gardening strategy is “Knowledge is Power”. To that end we began exploring web based solutions for delivering cost effective, accurate, timely and perhaps most importantly, local data to the citizens, business owners and entrepreneurs of Bozeman and beyond. During this research and due diligence period, we were made aware of a project conceptualized and funded through the Governor’s Office of Economic Development that intended to harness the power of nationwide demographic data via a private GIS company, ESRI and supplement that information with locally derived GIS data and available commercial real estate for lease or sale, existing facilities or bare ground. 2 In early 2011 the City and Prospera Business Network began recruiting strategic partners to come together to answer four questions 1) Is there a community need for such a platform?; 2) From where should the most relevant local data be harvested?; 3) How can the service be delivered?; and 4) How can a partnership be forged to carry this idea forward to fruition for the benefit of the business and entrepreneurial communities and for the advancement of the economic development efforts by the partnering organizations. The partnership determined that the need for such an information and knowledge sharing platform was present and growing. In the fast-paced business environment, there is no substitute for timely, accurate and local knowledge. We concluded that national, state and local demographic information depicting traffic and spending patterns, age and socio-economic distributions, among other indicators, is an important component to the overall project but dynamic local GIS data from local jurisdictions is critical to understanding and visualizing the shifting development patterns of our community, county and region in order to make informed business decisions about locating, re-locating or expanding a business in this region of southwest Montana. The final pieces of information necessary to create the local mosaic are that of commercial real estate listings. By leveraging the power of private, industry leading technology companies, Microsoft for the underlying mapping software and ESRI for the national, state and local demographic trends, adding the power, accuracy and dynamism of City and County GIS data and finally, enriching and completing the experience with current commercial real estate properties for sale or lease, we have created a stand-alone tool that anyone can use, free of charge, to assist in making sound business decisions about this region of Montana. The service delivery question can be answered in two parts: 1) The web-based service will remain free to the public for their own independent research and analysis. The reporting tool imbedded in the software allows for the generation of numerous reports based on the available data; and 2) the Prospera Business Network, a partner that provides business counseling will provide expert analysis based on unique client circumstances and the available data from Site Selector. The Site Selector partnership, evidenced by the MOUs under consideration, are the result of months of discussions, numerous meetings, demonstrations and conference calls to the partners and the vendor requesting technical solutions to issues identified and tested by the Site Selector team. The Site Selector team spans agencies and organizations including the private sector. Currently, the Site Selector partnership includes: The City of Bozeman, Prospera Business Network, Gallatin County, Park County, the City of Livingston, and local commercial real estate professionals through Gene Cook Realty. The MOUs under consideration will solidify the Site Selector partnership for the calendar years 2012 and 2013, after which we are committed to evaluating the success and utility of the Site Selector tool. Additionally, the Site Selector partnership offers the added benefit that the partners equally share the cost of the service which totals $10,000 for the first year and $5,000 for the second year. By working together, each partner is committed to supporting 1/6 of the cost which amounts to approximately $1,666 per partner in year one and $833 in year two. With the financial commitment comes the organizational commitment to utilize and maximize the value of the Site Selector tool by each partner and an equally important incentive to market the tool to the respective constituents and clients. 23 3 The following links provide access to the Site Selector program. The first link is a demo link for area covering Gallatin and Park counties. The second link is the live link to other Montana communities that use Site Selector. 1) Site Selector demo link for Gallatin and Park Counties: http://geo.gcs-holdings.net/MTSS/BOZEMAN 2) Site Selector live link: http://www.montanasiteselector.com/ UNRESOLVED ISSUES: None at this time. ALTERNATIVES: None suggested at this time. FISCAL EFFECTS: The GCS contract represents a $10,000 commitment for one year. The contract is renewable each year and the Site Selector partnership is committed to a two year program. The contracted amount for year two is $5,000. Currently the Site Selector partnership consists of 6 members. Under the current configuration and with the MOUs under consideration as the instrument by which the City is reimbursed, the City of Bozeman is committed to contributing 1/6 of the total contract cost which amounts to approximately $1,666 in year one and $833 in year two. If approved, and for the sake of simplicity and timeliness, the City of Bozeman will execute and manage the GCS contract and be reimbursed by the partners in amounts equivalent to their proportional share of the total contract cost. Attachments: 1) Memoranda of Understanding between the City of Bozeman and: a. Prospera Business Network; b. Gallatin County, MT; c. Park County, MT; d. City of Livingston, MT; and e. Gene Cook Realty. Report compiled on: December 29, 2011 24 MEMORANDUM OF UNDERSTANDING Prospera Business Network and the City of Bozeman Relationship and obligations for payment of a portion of fees to the City of Bozeman for the Montana Site Selector Project for a two-year period from the date of the execution of a signed contract between the City of Bozeman and GCS Research This Memorandum of Understanding (MOU) is made and entered into on this 14th day of December, 2011, by and between Prospera Business Network, a regional economic development organization and the City of Bozeman, Montana a self-governing charter government and political subdivision of the State of Montana, herein the “City” and jointly the “parties” herein. Whereas, the purpose of this MOU is to memorialize the parties’ intent to cooperate on a basis of mutual advantage by agreeing to share the payment of fees associated with the economic development tool called Montana Site Selector Gold, renewable yearly, for a two year period; and Whereas, in the spirit of, and with the intention of creating jobs and supporting the diversification of local economies the parties have forged a productive relationship and worked closely together and with the vendor, GCS Research, to customize a software solution with advantages and benefits for each party and area communities; and Whereas, the parties agree there are advantages to cooperating to share in the benefits and costs of services; and Whereas, the parties have invested numerous hours meeting, discussing, testing and presenting the benefits of Montana Site Selector to each party and to the community as a whole; and Whereas, the parties agree that the Montana Site Selector software solution provides a powerful tool for economic development by maximizing the power of local, county and regional Geographical Informational Systems (GIS) data layers, expert business counseling and commercial property and facility listings bolstered by an nation-wide database of economic data for the benefit of area communities. BASED ON THE FOREGOING, THE PARTIES AGREE AS FOLLOWS: 1. The City of Bozeman agrees to execute and administer the GCS Consulting and Services Agreement (the “GCS Agreement”) (Attachment 1); 2. Each party agrees to pay the City of Bozeman an equal proportional share (not to exceed $2,500 the first year and $1,250 the second year) of Montana Site Selector annual fee as stated in the GCS Agreement each year for a period of two years, after which and upon mutual agreement of some or all parties, an extension of this MOU will be considered by all parties. The total start-up and maintenance fees for the first year of the Montana Site Selector are not to exceed $10,000 and maintenance fees for the second year are $5,000; and 25 3. The parties agree not to discriminate in the fulfillment of this agreement on the basis of race, color, religion, creed, sex, age, marital status, national origin, or actual or perceived sexual orientation or gender identity or disability. Dated this 14th day of December, 2011. ______________________________ ______________________________ Chris Kukulski Stuart R. Leidner City Manager Executive Director City of Bozeman Prospera Business Network 26 27 28 29 30 31 32