HomeMy WebLinkAbout001120 Original Contract City of Port Angeles
Record # 001120
AGREEMENT BETWEEN
CLALLAM COUNTY ECONOMIC DEVELOPMENT CORPORATION
AND
CITY OF PORT ANGELES
THIS AGREEMENT,made this 15day of , 201_L,by and between the City of Port
Angeles,a Washington municipal corporation(hereinafter referred to as"city"),and the Clallam County
Economic Development Corporation,a non-profit corporation(hereinafter called"Corporation").
WHEREAS,the Corporation is a nonprofit educational and research corporation of the State of
Washington; and
WHEREAS,the city is therefore interested and concerned with the economic utilization of
services; and
WHEREAS,the city has need of research and education in regards to these and other aspects of
its operations; now,therefore,
In consideration of the mutual covenants and agreements herein and per the attached 2014—2018
Strategic Direction with Action Plan the parties agree it as follows:
I. Performance by Corporation
A. The Corporation agrees to carry out the action plan that coincides with the 2014-2018
Strategic Direction. (see exhibit A)
B. The Corporation shall report on a quarterly basis to the City in regard to the progress the
Corporation has made toward the objectives,goals and outcomes that are outlined in the
Scope of Work(see exhibits B and Q.
C. The Corporation shall serve as a countywide contact for development activities,and it
will facilitate the development process with prospective companies and appropriate
governmental entities. Through EDC participation,the City will be kept apprised of the
planning,development,and construction of necessary infrastructure to support various
projects.
D. The Corporation shall maintain records and report to the City as follows:
1. The Corporation shall maintain accounts and records that accurately reflect the
revenues and costs for the Corporation's activities. These financial records, and
all records related to the performance of the contract,shall be available for
inspection at monthly EDC Board meetings.
2. The Corporation shall use its best efforts to economize on overhead expenses to
the maximum extent feasible in providing the services to be performed pursuant
to this Contract.
E. Corporation shall become actively engaged in advocacy for the unique needs of Clallam
County's citizens and agencies.
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II. Performance by the City of Port Angeles
A. For the services rendered by the Corporation,the City will provide,by payment in cash,
the amount of(ten thousand) $10,000 Dollars.
B. Payment by the city shall be made in four installments,payment to be made during the
first month of each quarter.
C. The City shall participate, when applicable as determined by the City,by providing
expertise to accomplish the actions of the Clallam Economic Development Corporation.
III. Term This agreement shall be for a term of one year,commencing on January 1,2016.
IV. Assignment This agreement may not be assigned by either party to this agreement except by
signed amendment.
V. Termination This agreement may be terminated upon thirty(30)days' notice.
IN WITNESS WHEREOF,the parties hereto caused this contract to be executed the day and year
first here in above written.
City of Port Angeles Clallam County Economic Development
Corporation
By:
Dan McKeen Bill Greenwood
City Manager Exufii� "D
By B
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AL-
Jennifer Veneklasen andy Jo s
City Clerk Chairm
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Appro4d as to Form: J
17
William E. Bloor
City Attorney
2
Exhibit A
ff 7 s' ED C
La LIM 1 8
Clallam County Econoanic Development Council
Strategic Direction
2014 - 201-8
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Clallam County Economic Development Council
August 2014
905 West 9th Street, Suites 222/223 * PO Box 1085
Port Angeles, WA 98362
www.clailam.org
Contents
StrategicDirection..................................................................................................................... 1
Countywide Economic Development Fundamentals................................................................. 3
MissionStatement ..................................................................................................................... 3
Purpose of this Strategic Plan .................................................................................................... 4
Economic and Demographic Condition of our County............................................................... 4
Assetsand Advantages............................................................................................................... 5
Challenges and Constraints (or in other words—Opportunities).............................................. 5
StrategicObjectives:................................................................................................................... 6
Desired Clallam County Economic Conditions in 2018 .............................................................. 6
EDC Organization, Roles, and Responsibilities........................................................................... 6
Areasof Focus ............................................................................................................................ 6
Action Strategy for the EDC(2014—2018) ............................................................................... 8
What's Clear............................................................................................................................... 8
PARTONE: Objectives................................................................................................................ 8
PARTTWO: Action..................................................................................................................... 9
PART THREE: EDC Goals & Outcomes (2014—2018) .............................................................. 10
FinalNote ................................................................................................................................. 10
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* Aneducated, trained, and ready workforce
w Atrustworthy primary, and secondary education system
m A Community College which offers four year degrees, and is one of only fifteen
colleges in the State of Washington approved by the Microsoft Corporation as an
authorized academic training program
| * High quality health care
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* Access tocapital financing
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� m Realistic and business friendly regulations
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* High-speed telecommunications
* Ample land zoned for residential, commercial, and industrial activities
* Abundant, reasonably priced, diversely sourced, energy
m A transportation system connecting people with job locations, and goods from
origin to destination
* Available and affordable family housing
The C|oUann County Board of Commissioners has designated OaUann County Economic
Development Council (EDC) as the recipient of State of Washington Associate
Development Organization (AD[)) funding, should the EDC seek to contract for such
funding, (See Revised Code ofWashington, § 43.33O.O80/1Va)]
The EDC baprivate, non-profit organization, governed bvaBoard ofDirectors,operating
in accordance with its By-Laws, and subject to Section 501(c)(6) of the U.S. Internal
Revenue Code.
Mission State-�[Oenf
The OaUann ED['s mission is to "set-the tab|e" for economic growth; to identify,
understand and align the economic drivers throughout the County; and to be the
advocate for C|aUamCounty commerce.
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Purpose of thisStrategic Plan
To describe in quantitative terms the economic condition of Clallam County in
2018, so that we will know and be able to manage our progress toward that future
state;
To enable Clallam County governments and private businesses to cooperate using
strategic intent;
* To provide a basis for mobilizing public and private capital; and
This plan will connect ends with means.
This plan will also include a concise description of our economic environment
accompanied by a concise accounting of our economic assets and liabilities. The overall
idea is to derive the maximum economic return from our assets, and find ways to
overcome or mitigate our liabilities.
Economic and Demographic Condition of our, O
Population: 72,350
Between the ages of 25 and 60: 29,274 (40%of the total population)
Working or looking for work: 27,270 (93%of people ages 25—60)
Median age: —49.8
* Veterans: —12.4%
Four federally recognized tribes
* Unemployment rate: —8.2%
Median household income: $43,482
* Per capita income: $38,545
Non-farm businesses: 2,086
Number of Businesses:
® Total Business Revenue:
Major Infrastructure Projects:
Available Tax Break Incentives:
Businesses benefitted:
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m Trees grow well throughout the County, and forest products are a major export,
w Soils are good throughout the County and the Sequim Dungeness area maintains a
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century-old irrigation network to support both plant-based and animal-based
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agriculture,
w PortAnge|esHarbnrisamaintenancodredging'free, deepvvaterport, |ocatedon
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shipping directly on shipping routes for all Puget Sound and southern British
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Columbia ports,
• Sport fishing and commercial fishing are well established industries,
• Olympic National Park,� as well as other locations throughout the County are a
major tourism draw,
• The climate and rural nature ofC!a||arn County draws a vibrant retirement
population, and provides great place to raise a family,
• A privately owned passenger and vehicle ferry connects downtown Port Angeles to
Victoria, British Columbia /the provincial capital),
Is There are several public and privately owned general and commercial airports
throughout the County,
* C|aUarn County has a strong history ofworking together as a community,
w Schools and health care are both trustworthy and comprehensive; Peninsula
College has a strong academic and workforce training program; and Federal and
State research facilities are located here,
* Telecommunications, including broadband service speed, is very good, and
distribution isgetting even better day byday.
Challenges and Constraints /or in other wAords—O[)[)o'funit'es\
m C|aUanoCounty has nonatural gas pipeline orrail link,
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US Highway 101 is the only road link between east and west sides of the County,
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Substantially all foodstuffs and consumer goods must be imported, and all solid
waste must beexported,
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Broadband telecommunications service to the west side of the County needs to be
strengthened (progress is nearing build-out stage for microwave high speed
service),
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The tax and regulatory environment, both state and federal, make it increasingly
difficult to sustain historic County natural resource-based industries, and create
significant obstacles to expansion, and even survival, of business in general,
Federal and State discretionary budgets are under stress and will be increasingly
unable to sustain their historic level of financial support to local governments and
non-governmental organizations,
We will increasingly need to rely on our own financial resources to support publicly
owned economic infrastructure,
The availability of financing for small business owners and entrepreneurs.
Desired Clallam County Economic Conditions in 2018
Jobs: No net loss of private sector jobs between the 2010 census and 2020 census
Employment (ages of 25 to 60): 95% employable citizens will be either employed or
looking for employment(up from the current 93%)
Median wages: Consumer Price Index plus 4%
Median household income: Consumer Price Index plus 4%
EDC Organization, Roles, and Responsibikies
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Areas of Focus
Four areas of economic activity that can capitalize on our assets and advantages:
Marine Trades
* Natural Resources (Forestry, Fisheries, Agriculture)
Advanced Manufacturing
* Tourism
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Tourism is certainly a necessary area of focus for economic development; however,
state law provides a dedicated source of marketing and operating funds, and for a
governing structure, separate from the EDC. Therefore, EDC activities, while
unmistakably supporting tourism, will "zero in"on the three remaining areas,
The EDC will facilitate discussions, market research, and investment to strengthen and
grow our existing business clusters. It will also aim at recruiting new product lines and
will seek ways to increase market share.
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Action Strategy for the EDC
2014- 2018
The forestry industry, which has been the economic leader of Clallam County for over
100 years, has been in a significant decline for almost two generations. That said,
forestry is our single most important industry and the EDC must fully support the efforts
of its many employers who desire to hire individuals with a high work ethic.
A common perception is that forestry jobs have dropped to 25 percent of their peak and
that they have never been adequately replaced. (Moves can perhaps be made to slow
the continuing drop, or even renew the industry, but economic growth for the County
needs to come significantly from other industries.
PART ONE: Objectless
The Economic Development Council exists to serve the citizens of Clallam County. To
best serve its constituents the EDC is advancing on two primary fronts. We weigh both
equally.
A. First, we must help to keep, build and expand what we have. "BRE" (Business
Retention and Expansion) aims at assisting businesses with specific needs
throughout the County to ensure they survive but also increase their employment
base. There are many tools available like tax breaks that provide support and
incentives. A broad awareness of what's possible requires continuous
communication and advice.
OBJECTIVE: FIRST, we must take care of our own.
This means a high order of"BRE action". The EDC team needs to touch every
possible business and is aiming at doing so every day. The action will be
ongoing, recorded, with plenty of follow-up where needed.
B. Second, the EDC will simultaneously focus on attracting nearly any logical business,
or part of a business, to the County. Ideally, we need providers of a mix of jobs up
and down the wage scale. Hopefully, they come with private health insurance
plans. But we believe in recruiting any type of company that will flourish in our
environment and increase employment.
OBJECTIVE: Recruit new businesses based on "cost leadership,
differentiation, and focus." We are driven by these three strategies outlined
by Michael Porter of Harvard Business School in his 1985 book, "Competitive
Strategy".
The Pacific Northwest is again starting to grow faster than any area in the U.S.
In Seattle, unemployment appears to be heading below 6 percent, home
prices are rising sharply, as are rents, and businesses are outgrowing their
spaces. Significant growth both north and south of Seattle began about 40
years ago and 1-5 and 99 are now choked with traffic. Expansion east, which
began about 35 years ago, is now being slowed by congested traffic corridors
and geography. Forward looking Seattle business leaders have few options
and should be looking west.
In sum, to the west lies Clallam County and we have plenty to sell to
expanding companies:
"Cost Leadership"— lower costs of land, buildings, homes, rents, power,
and labor.
"Differentiation" - in terms of lifestyle, beauty, and a workforce eager to
be trained and hired.
* "Focus"—we need to make it very easy for any desirable business to
locate here and for its employees to want to live here.
PART-PNO: Action
Economic development is a team sport. The EDC needs to understand, assist, partner,
and coordinate with all sectors of our community to promote the healthy growth of our
County.
The EDC requires a small team with high energy and a bias for action. The current EDC
budget plan calls for an ultimate team of no less than four individuals. At least three
members will be equally focused on objectives A and B. The fourth team member will
manage the office and be the master coordinator of all activity, including that with the
Department of Commerce. Routine, dependable and reliable BRE visits will be carried
out. We will do our best to assist any company that faces zoning issues, financing
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issues, and other typical obstacles and challenges. Concurrently our energy will focus on
the face-to-face selling of Clallam County to companies in the Northwest starting,
specifically, in greater Seattle. Over time that selling effort will expand further east in
concentric circles after real results have been delivered. The sale will happen not only
because the effort will be made, but also because the `winds are blowing' in our
direction. We have plenty to offer and Clallam is the logical place to go. A strong and
properly financed EDC team will accelerate our County's drive to the future.
Once properly funded it is our intent to develop a classic incentive plan for the EDC
team that will appeal to individuals who are driven to succeed. Our initial thinking is that
any incentive should go to the team as a whole because the information load is high and
coordination within a small group is a must. Many"tools" need to be created and/or
updated. Presentations about our County need to be first-class.
PART THREE: EDC Goals & Outcomes (2014-2018)
1. Support 15 companies to significantly expand or to locate in Clallam County.
2. Induce $75 to $100 million of investment in new facilities.
3. Create over 500 new direct jobs.
4. Ensure an ever-building pipeline of new projects:
a. Some of which will fit our current business clusters,
b. Some of which may represent new industries,
c. Have a growing list of prospective companies evaluating the area for
expansion or relocation.
Final Note
As the Action Strategy described above is seen to be effective, the EDC team intends to
expand its outlook to include a 10 year perspective.
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Exhibit B.
SCOPE OF WORK
AREAS OF FOCUS
1. Marine Trades
2. Natural Resources(Forestry, Fisheries,Agriculture)
3. Advanced Manufacturing
4. Tourism
Strategic Objectives—Provide an ugdate on each of yourstated objectives(from.Strategic
Direction 2014—20181
1. No net loss of private sector jobs between 2010 and 2020 census
2. Employment(25—60) 93%employable citizens employed/looking (up from 91%)
3. Median wages of Consumer Price Index +4%
4. Median household income of Consumer Price Index +4%
Goals and Outcomes— Provide an ugdate on each of your stated goals/outcomes(from
.Strategic Direction 2014—2018)
1. Support 15 companies to significantly expand or locate in Clallam County
2. Induce$75 to $100 million of investment in new facilities
3. Create over 500 new direct jobs
4. Ensure an ever-building pipeline of new projects
Additional Metrics— Provide an update on the following core metrics for hour two most
important grogram areas When gossible, include trends
1. Business Attraction and Marketing (provide brief descriptions/general details in addition to
numbers)
o Businesses attracted to region
o Number of jobs attracted to region
o Total number and value of new development projects facilitated by EDC
o New investment facilitated by EDC
o "Active"prospects in pipeline
o Incentives awarded
3
o Targeted marketing campaigns undertaken
2. Business Retention and Expansion (provide brief descriptions/general details in addition to
numbers)
o Number of businesses expanded due to EDC assistance
o Number of businesses retained due to EDC assistance
o Number/type of jobs retained due to EDC assistance
o Number of businesses assisted (type, value, etc.)
o Amount of financing provided to existing businesses because of EDC assistance
Additional Reauirements— Provide concrete examples of efforts in each of the followinc�
areas.
1. Coordination with other Clallam County economic development partners
2. Collaboration and cooperation with permitting agencies
3. Regional economic development policy proposals
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Exhibit
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Addendum tmAgreement Between
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ClaUannCounty Economic Development Corporation and Port of Port Angeles
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Dated March 22, 2016
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This Addendum is attached to and incorporated as part of the Agreement between the Clallarn
County Economic Development Corporation (EDC) and the Port of Port Angeles (Port) dated
March 14, 2016.
1. Public Process: Recognizing that public monies are being used tofund activities
pursuant tothis Agreement, the EDC shall maintain transparency with the Port ofPort
Angeles in its decision making process and maintain an,open invitation to attend all
board meetings or portions of meetings that are not confidential. The EDC shall provide
no less than three weeks' lead time to allow for public process and scheduling items on
the Port Commission's meeting agenda. The Port shall be consulted in all future
contracts between the EDC and the Port,
2. Business Leads: The Department of Commerce provides business leads to the EDC. If
Port assets will be utilized by a potential business, the EDC shall work cooperatively with
the Port bycommunicating the business lead and potential activity. Incases where
utmost confidentiality is needed, the EDC may develop a code name for the prospect,
The Port and EDC will jointly meet with the Department of Commerce at least twice per
year and toinclude meetings with Commerce sector leads.
S. Port Property: Where Port property and assets are necessary for business recruitment
or expansion the EDC will collaboratively involve the Port. The Port will transition to be
the lead agency regarding Port assets that are identified as required to fulfill a potential
tenants' requirements. Discussion on forming a welcoming committee or other outreach
efforts in the community will involve Port staff,
4. Port Initiatives: The Port's Strategic Plan involves several key initiatives, The EDC will
work collaboratively with the Port on these initiatives. If the EDC has concerns about
any of the initiatives those concerns will be discussed directly with the Port until a
resolution orjoint statement isdeveloped that is mutually acceptable. Some key
initiatives include:
a. Marine Trades Industrial Park and other maritime commerce
b. Value added wood products (e.g,, cross laminated tirnber) and timber advocacy
efforts
c. Composite Recycling Technology Center
d, Commercial Air Service
e. Environmental cleanup projects and environmental compliance (e.8.,
sto/rnvvater)
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EDC Addendum O3'Z2'1hfinal Page zof3
5. Joint Initiatives: The Port and EDC shall share insights about the challenges and
opportunities in furthering economic development in Clallam County and shall jointly
develop strategic initiatives.
a. The Port and EDC will define joint strategic initiatives by April 30th and an action
plan by May 30th. These will be reported quarterly and revised as necessary. The
following item(s) will be considered:
i. Commercial Air Service Outreach: EDC to help engage existing businesses
to use air service; EDC to explore subsidies (prohibited for the Port by
FAA; includes revenue guarantees, ticket banks, or anything that
influences ticket prices incentives).
ii. Industrial Property Assessment Plan EDC in cooperation with the Port will
plan for and work towards developing an availability property list, a
needs assessment and analysis report for industrial property in Clallam
County. The intent is to complete this project by December 2017.
6. EDC Representation: If the EDC's Executive Director is not available for an important
meeting on one of the Port's initiatives, the EDC's Executive Director will inform Port
management and both parties will agree on a mutually acceptable substitute.
7. Workforce training: The EDC, along with the Port, will work in cooperation with
Peninsula College to identify workforce training needs and constraints in the following
areas:
a. Marine Trades
b. Composites and advanced manufacturing
c. Forestry advanced wood products
S. Section II.B. of the Agreement, titled Performance by the Port of Port Angeles, will be
revised to state "Payment by the Port will be made within 15 days of receipt of invoice
and documentation of services performed for the period. The EDC Corporation's
monthly or quarterly report may serve as documentation of services performed."
EDC Addendum 03-22-16 final i Page 2 of 3