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HomeMy WebLinkAbout5.136C Original ContractWASHINGTON U. S A. CITY MANAGER'S OFFICE February 4, 2004, ORT NGELES Jim Haguewood Executive Director Clallam County Economic"Developinent Council P. O. Box 1085 Port Angeles,' WA 98362 Re: Agreement between the City of Port Angeles and the CIallam,Co'unty Economic Development COuncil _Sincerely yours, Becky J. Upton, CMC City Clerk/Management Assistant Enclosures 321 EAST FIFTH STREET P 0 BOX 1150 PORT ANGELES, WA 98362-0217 PHONE 360-417-4500 FAX 360-417-4509 TTY 360-417-4645 E-MAIL CITYMGR@CI PORT-ANGELES WA US At its meeting of February 3, 2004, the Port Angeles City Council approved the 2004 agreement with the EconomiC Development Council. Enclosed are two (2) copies, of the agreement. Please have both copies signed and return one fully executed copy to my attention. If I can be of any further assistance, please feel free to contact me. I can be reached at 417-4634. A. General Goals. AGREEMENT THIS AGREEMENT is entered into this %ay of 2004, by and between the City of Port Angeles, Washington, a municipal corporation, hereinafter called "City and the Clallam County Economic Development Council, Inc., a non profit corporation, hereinafter called "Contractor WHEREAS, the City is a municipal corporation of the State of Washington authorized to contract for economic development services; and, WHEREAS, it is in the public interest for economic development activities to be performed that will enhance the economy and employment opportunities in the City of Port Angeles; and, WHEREAS, the City has need of research and assistance in regards to these and other aspects of its operations; NOW, THEREFORE, in consideration of the above representations and the mutual covenants and agreements herein, it is agreed by the parties as follows: 1. PERFORMANCE BY THE CONTRACTOR. The Contractor shall use its capabilities to promote and enhance economic development and employment opportunities in the City in accordance with the mission and goals established by the Contractor's Board of Directors as set forth in the attached Exhibit "A The Contractor shall use its resources to jointly market the facilities and capabilities of the City to new and existing businesses with the goals of increasing City revenues and general employment opportunities for City residents. B. Business Retention, Expansion and Recruitment. (1) The Contractor shall work cooperatively with the City and shall serve as a general economic development research and reference service for the City. In this capacity the Contractor shall perform such functions as conducting ongoing basic market research, identification of target markets, provision of business retention, expansion and recruitment services aimed at existing businesses and target markets, participating with the City in the process of responding to inquiries, site selection consultation, and case management, regarding existing or new industries or other commercial ventures which seek information concerning the facilities and resources managed by the City or which may involve properties and/or infrastructure within the Port Angeles Urban Growth Area (UGA). (2) The Contractor shall, upon request, and at reasonable times and in a reasonable manner provide effective industrial marketing guidance to City staff and provide services in the development and execution of programs aimed at better planning, utilization, promotion, and advertisement of community services, facilities, infrastructure, and property. (3) The Contractor shall maintain and enhance working relations with existing businesses to assist them with start-up and expansion needs, technical assistance, access to business counseling and financing resources including aid and assistance to at -risk businesses. (4) The Contractor shall assist the City in preparing replies to inquires received by the City or the Contractor regarding City facilities and resources or which may involve properties and/or infrastructure within the Port Angeles Urban Growth Area (UGA) relative to economic development retention and growth opportunities. (5) The Contractor shall assist the City in applying for and administering economic development related grants, including any potential to support the development of infrastructure. (6) The Contractor shall maintain a community profile specific to the greater Port Angeles area, which highlights demographic and development data customarily of interest to industrial /commercial developers. (7) The Contractor shall work with the City in the maintenance and periodic update of the commercial and industrial property and infrastructure databases for the Port Angeles vicinity. (8) The Contractor shall work with the City to research, identify, and implement the addition of new development incentive programs or packages as may be applicable to Port Angeles economic development efforts. 2 C. Prospect Management The Contractor will be responsible for client services for industrial and business retention, expansion and/or relocation. The Contractor will represent the attributes for appropriate site locations within the City that meet the prospects criteria. In such dealings, the Contractor shall participate in the handling of prospects, in accordance with the following guidelines: (1) Contacts made directly to the Contractor or referred to Contractor by DCTED. (a) The Contractor will provide general information and other data requested by the prospect. Within 24 hours of being contacted regarding a prospect, the Contractor shall notify the City Manager, or his designee, by phone and/or e -mail, regarding details of the contact. (b) If the prospect indicates an interest in specific business locations, the Contractor shall notify other affected parties and property owners as appropriate, make appropriate introductions, and assist in follow -up marketing. (c) If the prospect requests confidentiality, the Contractor will keep the City Manager, or his designee, fully informed without revealing the identity of the prospect. (2) Contacts made directly to the City (a) The City shall rely on the Contractor to supply recruitment information and services as described in 1A and 1B. When the City receives a direct contact or is managing a development prospect and desires support from the Contractor, it need only request such assistance be made within a reasonable time frame, and Contractor will render such assistance. (3) Public Events, and Media Public events such as media conferences, ground breaking ceremonies, and ribbon cuttings will be coordinated with the City Manager or his designee, the siting jurisdiction, and other affected partners. D. The Contractor shall provide to the City and to such persons as the City may direct, free of additional charge, materials prepared by the Contractor. E. The Contractor shall maintain records and report to the City as follows: 5. BREACH. (1) The Contractor shall maintain accounts and records that accurately reflect the revenues and costs for the Contractor's activities under this Contract. These financial records, and all records related to the performance of this Contract, shall be available for City inspection. (2) The Contractor shall provide the City with quarterly reports fully describing what work has been performed pursuant to this Contract, and including a current statement of revenues and costs. (3) The Contractor 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. (4) The Contractor shall provide the City with an annual budget, including current salaries and benefits for all employees and classifications of employees and shall notify the City within 30 days of any increases in salaries or benefits from the previous year. 2. PERFORMANCE BY THE CITY. A. For the "Core" services rendered by the Contractor, the City will provide, by payment in cash, the amount of $35,000 and, in -kind telephone service, in an amount not to exceed $2,500. B. Payment by the City shall be due upon receipt and acceptance by the City Manager of the Contractor's quarterly report as required under Paragraph 1 E of this Contract. The Contractor will invoice the City for all quarterly payments. 3. TERM. This agreement shall be for a term of one year, commencing on January 1, 2004. 4. ASSIGNMENT. This agreement may not be assigned by either party to this agreement except by signed amendment. A. In the event of either party's material breach of the terms or conditions of this Contract, the non breaching party reserves the right to withhold payments or services until corrective action has been taken or completed. However, the party shall not exercise this right until they have given written notice of such material breach to the breaching 4 party and ten days have passed since the receipt of such notice. This option is in addition to and not in lieu of the parties' right to terminate this Contract or any other right which State law offers for breach of contract. B. If either party shall materially breach any of the covenants undertaken herein or any of the duties imposed upon it by this Contract, such material breach shall entitle the other party to terminate this Contract, provided that the party desiring to terminate for such cause shall give the offending party at least twenty days' written notice, specifying the particulars wherein it is claimed that there has been a violation hereof, and if at the end of such time, the party notified has not removed the cause of complaint, or remedied the purported violation, then the termination of this Contract shall be deemed complete. 6. NON DISCRIMINATION. A. The Contractor shall conduct its business in a manner which assures fair, equal and non discriminatory treatment of all persons, without respect to race, creed or national origin, and, in particular: B. The Contractor shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity /affirmative action requirements; and, C. The Contractor shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non- discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran's status, disabled veteran condition, physical or mental handicap, or national origin. 7. DISPUTE RESOLUTION. Any disputes related to this Agreement that are not resolved by agreement of the City Manager and the Contractor's Executive Director shall be referred for determination by the City Council and the Contractor's Board of Directors. Any still unresolved disputes shall be referred to non- binding mediation by a mutually acceptable mediator. Venue of any lawsuit related to this Agreement shall be in Clallam County, Washington. 8. HOLD HARMLESS AND INSURANCE. The Contractor shall protect, defend, save harmless, and indemnify the City, its officers, agents, and employees from and against any and all claims, damages, losses, and expenses, including reasonable attorney's fees, occurring, arising, or resulting from supplying work, services, materials, or supplies in connection with the performance of this Contract. The 5 Contractor shall provide a Certificate of Insurance evidencing occurrence -based Commercial General Liability insurance with limits of no less than $1,000,000 combined single limit per occurrence, with the City shown as a named additional insured. 9. ENTIRE CONTRACT. The parties agree that this Contract is the complete expression of the terms hereto and any oral representation or understanding not incorporated herein is excluded. Further, any modification of this Contract shall be in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereto caused this Contract to be executed the day and year first herein above written. CI .QF PORT ANGELES Mayor Richard Headrick ATTEST: Becky J. Up Cler APPROVED AS TO FO Craig D. Knui on, City Attorney CLALL COUNTY ECONOMIC DEVEL EN OUNCIL President --W Vice Pre ident G \Legal_Backup \AGREEMENTS &CONTRACTS \EDC -2004 wpd Tim Smith EDC Strategic Plan 2003 -2007 FINAL.doc CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL Strategic Plan 2003 -2007 Vision Statement A connected and interdependent community in business, government, education and healthcare to improve economic opportunities and enrich the life of each and every citizen. Mission Statement The mission of the Clallam County Economic Development Council is to catalyze economic growth; to lead the collaborative process and diversification of the economy while applying sound stewardship of the community. This document is a working document, which may be added to and/or altered by the Board of Directors to address issues and opportunities that may arise during the 2003 -2007 period. Adopted by Clallam County EDC Board of Directors on September 18. 2003 36 Page 1 :zo e TLICST" S;T 74 Tim Smith EDC Strategic Plan 2003 -2007 FINAL.doc _............_Page 2j ti CLALLAM COUNTY CONNECTED COMMUNITY PRINCIPLES Education Ensure that the region maintains a qualified workforce by developing a community that embraces change and has access to high quality life -long education. >Jobs Invest community resources in the creation of a diverse set of new job opportunities in sustainable industry sectors; raise the average wage in Clallam County. >Access Make sure one's zip code does not limit one's access to government services, business, healthcare or education opportunities, thus saving time and money and improving service availability and quality. Entrepreneurship Become a community of creative solutions where government, education and business recognize, appreciate and adopt an entrepreneurial spirit. >Community Development Facilitate community projects and practices to promote collaborative behavior, connectivity and changed spending, investing and budgeting. s s s implement a tangible program to communicate the collaborative actions and resource sharing occurring in the community; encouraging citizens to adopt connected ways of thinking and demonstrating the "Connected Economy" as enhancing our shared vision to maintain a desirable community in which to work and live. 37 Tim Smith EDC Strategic Plan 2003-2007 FINAL.doc Page u_ E�T?VEf Fotest IFtngm Maiiuie Sarvices EdwatIon Ttainlng Centers of Excellence. STRATEGIC PLAN ELEMENTS tits (4°ALS rcjr Firkanw Detdolwil etwo integrated 1,0AR Skills center/ I.-- 3,10.6 Strategic Plan Key Indicators Clallam County Average Covered Wage Labor force: Total, Percentage of Population Clallam County Employment Businesses By Sector New Businesses By Sector Medicare/Medicaid Reimbursements at Olympic Medical Center K-12 Enrollments Peninsula College Enrollments Clallam County Retail Sales 38 Tim smith: EDC Strategic Plan 2003 -2007 FINAL.doc Objectives, Strateeies and Actions Strategies and Actions Sustain and support private business participation within the industry cluster teams Promote and increase value in the cluster team collaborative process Recruit broader participation of industry cluster segments Educate community on the use and benefit of an industry cluster strategic approach Promote and coordinate monthly "Industry Connection Events" Coordinate industry cluster opportunities events for public agencies and the community Continue to support a bimonthly "Business Column" Distribute industry cluster documents Celebrate the wins and successes of the cluster strategy Develop objective measures on the impact and development of current and potential clusters Create a visual measurement tool Use key indicators to monitor the economic impact Connect local "resources to the industries via Clallam networks Coordinate mapping of industry clusters Provide access to industry maps Facilitate connection of resources between clusters Provide and develop leadership and support to industry cluster teams Board member co- chairs lead industry cluster teams Increase leadership skills of cluster teams Identify funding for industry cluster teams 39 Page Tim Smith EDC Strategic Plan 2003 2007 F1NAL.doc Promote the retention and expansion (BRE) of our local businesses within the industry clusters Integrate BRE principles into industry cluster strategy Connect CCBI services to the industry cluster teams Advocate for industry competitiveness by addressing legislative issues Improve the competitiveness and promote innovation within the industry clusters Identify and recruit firms to fill gaps in industry cluster supply chain Address the legislative issues impeding local business Facilitate industry research Connect innovation research and resources to industry clusters Provide market research training to industry cluster teams 40 Page 5 j Tim Smith EDC Strategic Plan 2003 2007 FINAL.doc Strategies and Actions Support the Clallam County Business Incubator (CCBI} Connect current business support resources to the organization Market the facility and services Pursue capital and operational funding Provide support during initial development Direct prospects into the "Guided Access Process" Partner with resources to grow and retain existing businesses Continue funding support for SBDC Strengthen relationships with state and national business support services Educate the community on available business resources through the EDC Continue to support a bimonthly "Business Column" Coordinate workshops and seminars Seek out public relations and advertising opportunities Identify business resources to meet the needs of local businesses Participate in state wide association Attend applicable conferences Create a resource library Engage youth in local economic development Partner with High School related classes and organizations Encourage entrepreneurial spirit in youth Create intern opportunities To foster the dynamic relationship between business, workforce, education Coordinate cross cluster activities and connections Identify collaborative opportunities 41 Page 6 l Tim Smith EDC Strategic Plan 2003 2007 FINAL.doc Strategies and Actions Be an advocate for solutions for the removal of barriers that inhibit community growth Identify community-financing alternatives Explore the feasibility of an integrated Capital Finance structure Use the finance cluster team to facilitate innovative finance opportunities Promote current alternative finance resources Moderate between various organizations to foster common thread that mirrors the EDC vision and mission Board members communicate the Councils vision and mission to their respective organizations Identify opportunities to incorporate economic development component element in their plans Ensure that our vision is an integral part of the GMA comprehensive plan Board members communicate the vision and mission to their organizations planning process Propose and coordinate the economic development section of the comprehensive plans of the entire county Review regulations impacting economic development Make recommendations to agencies when appropriate Drive collaboration of strategic planning initiatives within the community Coordinate the review of agencies strategic plans Identify opportunities for collaboration 42 Page 7 Tim Smith EDC Str Plan 2003 -2007 FINAL.doc Strengthen the relationship with the tribes Engage tribal governments in economic development initiatives Conduct out reach visits to tribal communities Promote the interdependency between business, government, education and health care Quantify the value of collaborative actions Utilize Board of Directors to identify interdependency opportunities 43 sidIVARM Page .1 ,Tim Smith EDC Strategic Plan 2003 -2007 FINAL.doc Strategies and Actions Acquire and leverage resources to execute the strategic plan Secure additional funding resources Create a list of people and agencies to assist in implementation of the plan Encourage Board members to advocate for the strategic plan Create and implement a fundraising strategy Create and implement a legislative strategy Identify and secure project management needs Develop a knowledge management system Export marketable components of the strategic plan Develop a Board of Directors whose members are active participants that engage in meeting the Roles and Responsibilities of the EDC Board of Directors Institute an evaluation mechanism to measure the boards effectiveness in achieving the strategic plan Track the Board members participation Develop strategies to increase participation Leverage the capacity of the FDA and other regional initiatives Participate in Olympic Regional economic partnerships Identify and connect opportunities to further the strategic plan actions Increase private sector participation and investment Promote the value of Council membership Build partnerships in strategic planning initiatives Institute a annual membership campaign 44 Page 9 tTim Smith- EDC Strategic Plan 2003-2007:- FINAL.doc Strategies and Actions Identify resources to implement elements of the plan Secure sponsors and funding Utilize cluster expertise Recruit potential businesses from outside the community to relocate Utilize cluster teams to identify targeted prospects Collaborate with tourism marketing campaign Conduct on -site company visitations Participate in identified industry trade shows Lead a countywide effort to create a branding strategy Coordinate focus groups to gather input Locate and utilize existing branding information Identify and secure funding for implementation Use technology as a marketing tool Develop a web portal Develop a community video Provide electronic information Develop a communication strategy Integrate public relation and marketing Establish a communication committee Identify funding and sponsors to support implementation Leveraging the Board members to help implement the communications strategy 45 Page 10,1 P February 20 2003 Sincerely yours, Enclosure ORT ANGEL ES CITY- MAN'AGER'S OFFICE Teri Martin Operations Manager ClalIam County Economic Development Council P. O. Box _1085. Port Angeles,- WA 98362 Re: Agreement between the City of Port Angeles and the Clallam County Economic Development Council Dear Teri, Enclosed for your file is a ,fully executed agreernent between the, City and the Economic Development Council for 2003 economic development :activities. If I can be of any further assistance, please,-feel free, to contact me. I can be reached at 417 =4634. Becky_ J. Upton, CMC City Clerk/Management Assistant 321 EAST FIFTH STREET P O. BOX 1150 PORT ANGELES, WA 98362 -0217 PHONE- 360 -41 7 -4500 FAX 360 -417 -4509 TTY. 360- 417 -4645 E-MAIL CITYMGR @CI PORT ANGELES.WA US 5. /81i nQ AGREEMENT THIS AGREEMENT is entered into this 13 day of F e,bn,tca,ru 2003, by and between the City of Port Angeles, Washington, a municipal corporation, hereinafter called "City and the Clallam County Economic Development Council, Inc., a non profit corporation, hereinafter called "Contractor WHEREAS, the City is a municipal corporation of the State of Washington authorized to contract for economic development services; and, WHEREAS, it is in the public interest for economic development activities to be performed that will enhance the economy and employment opportunities in the City of Port Angeles; and, WHEREAS, the City has need of research and assistance in regards to these and other aspects of its operations; NOW, THEREFORE, in consideration of the above representations and the mutual covenants and agreements herein, it is agreed by the parties as follows: 1. PERFORMANCE BY THE CONTRACTOR. A. General Goals. The Contractor shall use its capabilities to promote and enhance economic development and employment opportunities in the City in accordance with the mission and goals established by the Contractor's Board of Directors as set forth in the attached Exhibit "A The Contractor shall use its resources to jointly market the facilities and capabilities of the City to new and existing businesses with the goals of increasing City revenues and general employment opportunities for City residents. 5.131p B. Business Retention. Expansion and Recruitment. (1) The Contractor shall work cooperatively with the City in the development and implementation of the Port Angeles Works Program and shall serve as a general economic development research and reference service for the City. In this capacity the Contractor shall perform such functions as conducting ongoing basic market research, identification of target markets, provision of business retention, expansion and recruitment services aimed at existing businesses and target markets, participating with the City in the process of responding to inquiries, site selection consultation, and case management, regarding existing or new industries or other commercial ventures which seek information concerning the facilities and resources managed by the City or which may involve properties and/or infrastructure within the Port Angeles Urban Growth Area (UGA). (2) The Contractor shall, upon request, and at reasonable times and in a reasonable manner provide effective industrial marketing guidance to City staff and provide services in the development and execution of programs aimed at better planning, utilization, promotion, and advertisement of community services, facilities, infrastructure, and property. (3) The Contractor shall maintain and enhance working relations with existing businesses to assist them with start-up and expansion needs, technical assistance, access to business counseling and financing resources including aid and assistance to at -risk businesses. (4) The Contractor shall assist the City in preparing replies to inquires received by the City or the Contractor regarding City facilities and resources or which may involve properties and/or infrastructure within the Port Angeles Urban Growth Area (UGA) relative to economic development retention and growth opportunities. (5) The Contractor shall assist the City in applying for and administering economic development related grants, including any potential to support the development of infrastructure or to leverage the Port Angeles Works Program. (6) The Contractor shall maintain a community profile specific to the greater Port Angeles area, which highlights demographic and development data customarily of interest to industrial /commercial developers. (7) The Contractor shall work with the City in the maintenance and periodic update of the commercial and industrial property and infrastructure databases for the Port Angeles vicinity. (8) The Contractor shall work with the City to research, identify, and implement the addition of new development incentive programs or packages as may be applicable to Port Angeles economic development efforts. C. Prospect Management The Contractor will be responsible for client services for industrial and business retention, expansion and/or relocation. The Contractor will represent the attributes for appropriate site locations within the City that meet the prospects criteria. In such dealings, the Contractor shall participate in the handling of prospects, in accordance with the following guidelines: (1) Contacts made directly to the Contractor or referred to Contractor by DCTED. (a) The Contractor will provide general information and other data requested by the prospect. Within 24 hours of being contacted regarding a prospect, the Contractor shall notify the City Manager, or his designee, by phone and/or e-mail, regarding details of the contact. (b) If the prospect indicates an interest in specific business locations, the Contractor shall notify other affected parties and property owners as appropriate, make appropriate introductions, and assist in follow -up marketing. (c) If the prospect requests confidentiality, the Contractor will keep the City Manager, or his designee, fully informed without revealing the identity of the prospect. (2) Contacts made directly to the City (a) The City shall rely on the Contractor to supply recruitment information and services as described in 1A and 1B. When the City receives a direct contact or is managing a development prospect and desires support from the Contractor, it need only request such assistance be made within a reasonable time frame, and Contractor will render such assistance. (3) Public Events, and Media Public events such as media conferences, ground breaking ceremonies, and ribbon cuttings will be coordinated with the City Manager or his designee, the siting jurisdiction, and other affected partners. D. The Contractor shall provide to the City and to such persons as the City may direct, free of additional charge, materials prepared by the Contractor. E. The Contractor shall maintain records and report to the City as follows: (1) The Contractor shall maintain accounts and records that accurately reflect the revenues and costs for the Contractor's activities under this Contract. These financial records, and all records related to the performance of this Contract, shall be available for City inspection. (2) The Contractor shall provide the City with quarterly reports fully describing what work has been performed pursuant to this Contract, and including a current statement of revenues and costs. 3 (3) The Contractor 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. (4) The Contractor shall provide the City with an annual budget, including current salaries and benefits for all employees and classifications of employees and shall notify the City within 30 days of any increases in salaries or benefits from the previous year. 2. PERFORMANCE BY THE CITY. A. For the "Core" services rendered by the Contractor, the City will provide, by payment in cash, the amount of $35,000 and, in -kind telephone service, in an amount not to exceed $2,500. B. Payment by the City shall be due upon receipt and acceptance by the City Manager of the Contractor's quarterly report as required under Paragraph lE of this Contract. The Contractor will invoice the City for all quarterly payments. 3. TERM. This agreement shall be for a term of one year, commencing on January 1, 2003. 4. ASSIGNMENT. This agreement may not be assigned by either party to this agreement except by signed amendment. 5. BREACH. A. In the event of either party's material breach of the terms or conditions of this Contract, the non breaching party reserves the right to withhold payments or services until corrective action has been taken or completed. However, the party shall not exercise this right until they have given written notice of such material breach to the breaching party and ten days have passed since the receipt of such notice. This option is in addition to and not in lieu of the parties' right to terminate this Contract or any other right which State law offers for breach of contract. B. If either party shall materially breach any of the covenants undertaken herein or any of the duties imposed upon it by this Contract, such material breach shall entitle the other party to terminate this Contract, provided that the party desiring to terminate for such cause shall give the offending party at least twenty days' written notice, specifying the particulars wherein it is claimed that there has been a violation hereof, and if at the end of such time, the party notified has not removed the cause of complaint, or remedied the purported violation, then the termination of this Contract shall be deemed complete. 6. NON DISCRIMINATION. A. The Contractor shall conduct its business in a manner which assures fair, equal and non- discriminatory treatment of all persons, without respect to race, creed or national origin, and, in particular: B. The Contractor shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity /affirmative action requirements; and, C. The Contractor shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran's status, disabled veteran condition, physical or mental handicap, or national origin. 7. HOLD HARMLESS AND INSURANCE. The Contractor shall protect, defend, save harmless, and indemnify the City, its officers, agents, and employees from and against any and all claims, damages, losses, and expenses, including reasonable attorney's fees, occurring, arising, or resulting from supplying work, services, materials, or supplies in connection with the performance of this Contract. The Contractor shall provide a Certificate of Insurance evidencing occurrence -based Commercial General Liability insurance with limits of no less than $1,000,000 combined single limit per occurrence, with the City shown as a named additional insured. 8. ENTIRE CONTRACT. The parties agree that this Contract is the complete expression of the terms hereto and any oral representation or understanding not incorporated herein is excluded. Further, any modification of this Contract shall be in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereto caused this Contract to be executed the day and year first herein above written. CITY OF PORT ANGELES Mayor Glenn Wiggins ATTEST: APP EDA Craig D. Kn son, City Attorney CLALLAM CO TY ECONOMIC OP T Pres f e Presiden t G \Legal_ Backup \AGREEMENTS &CONTRACTS \EDC -2003 5 zXVigtr O CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL STRATEGIC WORK PLAN 2001 -2003 Vision Statement Create a connected and interdependent community in business, government, education and healthcare to improve economic opportunities and enrich the life of each and every citizen. Mission Statement The Clallam County Economic Development Council is a private, non-profit organization and a catalyst for economic acceleration that provides leadership to build collaboration, and encourage a diverse economy, while applying sound stewardship. 1 This document is a working document, which may be added to and/or altered by the Board of Directors to address issues that may arise during the 2001 -2003 period "Actions" are created to provide a method to accomplish the mission of the EDC and meet the needs of the community for economic diversity. 2 1 Education Priority Ensure that the region maintains a qualified workforce by developing a community that embraces change and has access to high quality life -long education. Action #1: Develop and deliver comprehensive post secondary career opportunities and make available to employers and workers 24/7. Action #2: Expand current business and education summit through Peninsula College. Action #3: Service Corps of Retired Executives (SCORE) Provide administrative support, market services to the community and facilitate business start -up related workshops. Action #4: Small Business Development Center (SBDC) Provide administrative support, market services to the community and facility business development workshops. Jobs Priority Invest community resources in the creation of a diverse set of new job opportunities in sustainable industry sectors, raising the median household income for Clallam County. Action #1: Implement a Business Incubator with access physically in the east, central and west portions of the County and provide opportunities for business counseling and education remotely. Action #2: Identify four industry segments, which have significant unfilled job opportunities in the region and could be remotely supported from Clallam County. Action #3: Develop and implement a business retention and expansion program for Clallam County that identifies and addresses current and future issues in the community. Immediately engage high power usage companies in Clallam County. Action #4: Participate as a partner of the Washington State trade show consortium to share costs in attending trade shows and generating business leads for recruitment of businesses to Clallam County. Action #5: Facilitate collaborative development of regional marketing materials and advertising campaigns for recruitment of Puget Sound businesses. Action #6: Revise and promote /market County Opportunity Fund policies to create more capital and inter jurisdictional opportunities for community development projects. 4 Marketing Priority Implement a tangible program to communicate the collaborative actions and resource sharing occurring in the community; encouraging citizens to adopt connected ways of thinking and demonstrating the "Connected Economy" as enhancing our shared vision to maintain a desirable community in which to work and live. Action #1: Develop a weekly column in Peninsula Daily News, Sequim Gazette, Forks Forum and Peninsula Business Journal, and make available on BridgeWorks and CCEDC web site. Action #2: Improve interagency communication. Create a clearinghouse for the positive activities of various agencies that will gather, distill and disseminate information back to agencies (1) Port Angeles (2) expanding to countywide. Action #3: Provide interagency communication to the public. Action #4: Marketing of CCEDC services. 5 Access Priority Make sure one's zip code does not limit one's access to government services, business, healthcare or education opportunities, thus saving time and money and improving service availability and quality. Action #1: Create a GIS map of all public /private infrastructures_ Action #2: Maintain demographics and community statistics for Data Book publication and website. Action #3: Maintain industrial database on Washington Development Network website for available Clallam County properties. Action #4: Create access to current available commercial properties and make available 24/7. 6 Entrepreneur Priority Become a community of creative solutions where government, education and business recognize, appreciate and adopt an entrepreneurial spirit. Action #1: Develop an angel /venture capital network. Action #2: Empower an individual within each agency to coordinate services for new development or business development projects, taking a customer service approach. Action #3: Collaborate between public agencies to provide business development services in a timely manner to clients and business inquiries. 7 Community Development Priority Facilitate community projects and practices to promote collaborative behavior, connectivity and changed spending, investing and budgeting. Action #1: Continue Project Management for the following projects: Sappho Gap; Wireless Communication Planning for Clallam PUD. Action #2: Create more opportunities for improved healthcare services and medical insurance coverage, including Medicare recipients. Action #3: Work with North Olympic Visitors Convention Bureau (NOPVCB) to facilitate a golf tournament for fund raising and business networking opportunities. Action #4: CCEDC Membership: Increase membership participation; review dues structure to increase overall annual revenues. Action #5: Research and apply for outside grants, funding and loans for community improvement projects. 8 February 13, 2003 Becky J. Upton City of Port Angeles 321 East Fifth Street P.O. Box 1150 Port Angeles, WA 98362 Dear Becky: Sincerely, Teri Martin Operations Manager /tem Enclosures it CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL RE: Agreement between EDC and City of Port Angeles for the Year 2003 Enclosed are the two copies of the Agreement signed by our President and Vice President between the EDC and the City of Port Angeles. After the Mayor has signed them we understand you will forward one copy of the fully executed agreement back to us. If I can be of any further assistance please let me know. Thank you. P O BOX 1085 102 E FRONT ST PORT ANGELES, WA 98362 -0204 PHONE 360 457 7793 FAX 360 452.9618 WEB www Hallam org E -MAIL info @clallam org 5. /3!0 ti CITY COUNCIL MEETING 1 February 4, 2003 Contract for Commumca- 2 Contract for Communications Console Furniture Modification tons Console Furniture Modification Naomi Wu, Police Department Communications Manager, reviewed the request for Watson Furniture to modify the current custom radio console furniture in order to accommodate the new computer based 9 -1 -1 telephone system. She advised the Council that Watson Furniture was the successful bidder for building the consoles in 1995 for the 9 -1 -1 project, and those rack mounted phones need to be replaced The cost is in excess of $15,000 due to the customization required. CONSENT AGENDA: Mayor Wiggins observed that the funding is coming from the County, which was confirmed by Ms. Wu. Discussion followed concernmg the projected longevity of the furniture and whether the furniture is ergonomically correct. Councilmember Rogers felt the price was exorbitantly high, and Ms. Wu responded this is a standard cost in the industry Councilmember Rogers noted that this was not rebid, and Ms. Wu reviewed the previous bid submitted, the competitiveness of the bid, and the quality of the product provided by Watson Furniture. Lengthy discussion followed, and the possibility of delaying contract approval due to the price was considered. Communications Manager Wu reviewed the time frame for building the furniture, emphasizing that an RFP was issued for the new telephone system with a completion date of May 30. She also explained that this modification requires the consoles be completely pulled out, as there are equipment cabinets containing a great deal of electrical equipment that must be treated with care. Manager Quinn recommended that, in light of the importance of emergency communications, this project should proceed as soon as possible. Councilman Headrick asked if another company could provide installation, but Ms. Wu was uncertain as to whether another company would be willing to do so in view of the warranty associated with the equipment. Councilmember Erickson moved to authorize the Mayor to sign the contract with Watson Furniture Systems in the amount Hof $17,090.19. The motion was seconded by Councilman Headrick. Councilmembers Rogers and Williams urged staff to be cognizant of the need to provide more thorough information to Council when submitting recommendations of this type. A vote was taken on the motion, which carried 6 1, with Councilmember Rogers voting in opposition. In considering the Consent Agenda, Councilman Williams referenced Page 2 of the January 25, 2003, City Council minutes, Ennis Creek Estates, Line 6, where the statement is made, "the recent new subdivision ordinance passed by Council does provide an option of finishing the lots without the requirement of the final plat He suggested that finishing the lots be changed to offering the lots for sale. Economic Development Director Smith was asked to provide an overview of the contracts included in the Consent Agenda. He indicated the contracts with the Economic Development Council, the Chamber of Commerce, and the Port Angeles Downtown Association were largely unchanged from the previous year, with the exception that they have been standardized in terms of language dealing with issues such as civil rights and liability insurance. Mr. Smith indicated that the three agencies have done a banner job in partnering to accomplish many economic development successes. Consideration was given to the contract with the EDC, and Mr Smith indicated the contract amount is unchanged. Mayor Wiggins inquired as to the Entrepreneur Priority containing the development of an angel/venture capital network Jim Haguewood, Executive Director of the Economic Development Council, approached the podium and explained that, as a part of the Clallam Networks contract, there is the element of the finance mfrastructure, which will be going before the EDC Board in March One specific element is the creation of an angel/capital network Through research via the industry clusters, there were a number of interviews conducted to ask if there were individuals who were interested in pooling available assets into a local fund for the -3- CITY COUNCIL MEETING February 4, 2003 CONSENT AGENDA: (Cont'd) Break PUBLIC HEARINGS OTHER: Proposed Revision to Parking Ordinance Ordinance No. 3135 purpose of allowing local investors, through a managed structure, to invest in local companies. This would create a potential access to capital, and the idea was received quite favorably. Further discussion was held on the EDC's future action plans Councilmember Rogers initiated a round of applause for Mr Haguewood for his leadership and skills in moving the EDC forward. She pledged the City's continued support for Clallam Networks, and Councilman Campbell, in echomg Councilmember Rogers' remarks, noted the Economic Development Council has developed into a very effective organization with strong input to companies wishing to do business in Port Angeles. The industry clusters are producing synergies far beyond what was experienced in the past. Mr. Haguewood expressed appreciation, but emphasized all efforts have been collaborative throughout the county. Economic Development Director Smith then directed attention to the Chamber of Commerce contract, where the amount for the Visitors Center remains the same as in past years. Funding for tourism programs in 2002 was $234,000; for 2003, the funding proposed is $217,145. When queried as the reason for the decrease, Russ Veenema, Chamber of Commerce Executive Director, approached the podium and explained that the previous year's funding involved monies from reserve. At that time, it was acknowledged that reserve funds could not be used on a continual basis Mr Smith indicated that, under Mr. Veenema's leadership, there are efficiencies in economies because of the joint marketing efforts, all of which have proven very successful Councilmember Rogers offered kudos to Mr. Veenema for his successes with the Chamber's efforts. Mr. Smith proceeded to a review of the contract with the Port Angeles Downtown Association, noting that the contract provides financial support to allow a continuation of the Main Street Program, as well as parking lot management. Fundmg proposed for 2003 is the same as in 2002. He emphasized that, with all three of the groups, the frequent communications and team efforts have resulted in some very strong partnerships to the benefit of the community Councilmember Rogers commended the Association's commitment to a strong downtown through the establishment of public and private partnerships. Councilman Braun moved to accept the Consent Agenda, to include: 1.) City Council minutes of regular Council Meeting of January 21, 2003, and special meeting of January 25, 2003, as corrected; 2.) Check Register January 29, 2003 $864,261.39; 3.) Electronic Payments January 24, 2003 $174,524 80; 4.) 2003 Contract with Economic Development Council; 5.) 2003 Contract with the Chamber of Commerce; 6) 2003 Contract with Port Angeles Downtown Association; and 7 Accept Completion of Landfill Cell 3 Drainage Project 22 -29 The motion was seconded by Councilman Williams and carried unanimously. Mayor Wiggins recessed the meeting for a break at 6:50 p.m. The meeting reconvened at 7:13 p.m. 1 MCA 01 -02B Proposed Revision to Parking Ordinance Community Development Director Collins explained that the recommendation on parking revisions involves two different versions of the Ordinance. Should the Council opt to delay action on the longer version following the public hearing, it is recommended that the shorter version be adopted in view of the fact there are major projects being undertaken in the City that are currently in the design phase. In order to proceed, the developers will need to know what the design requirements for parking will be. Director Collins indicated there had been a work session on the longer version being presented in the Council packet as Exhibit "A the Planning Commission had differing -4- PORTANGELES W A S H I N G T O N U.S.A. CITY MANAGER'S OFFICE February 5, 2003 Jim Haguewood Executive Director Clallam County Economic Development Council P. O. Box 1085 Port Angeles, WA 98362 Re: Agreement between the City of Port Angeles and the Clallam County Economic Development Council Dear Jim, At its meeting of February 4, 2003, the Port Angeles City Council approved the 2003 agreement with the Clallam County Economic Development Council. Enclosed are two (2) copies of the agreement. Please sign both copies and return them to my attention at your earliest convenience. I will then obtain the Mayor's signature and return one fully executed copy to you for your files. If I can be of any further assistance, please feel free to contact me. I can be reached at 417 -4634. Sincerely yours, Becky J. Upton, CMC City Clerk/Management Assistant Enclosure 321 EAST FIFTH STREET P 0 BOX 1 150 0 PORT ANGELES, WA 98362-0217 PHONE 360- 417 -4500 FAX 360- 417 -4509 TTY 360- 417 -4645 E-MAIL CITYMGR @CI PORT- ANGELES WA US PORTANGELES W A S H I N G T O N U.S.A. CITY MANAGER'S OFFICE February 6, 2002 Jim Haguewood Executive Director Clallam County Economic Development Council P. O. Box 1085 Port Angeles, WA 98362 Re: Agreement between the City of Port Angeles and the Clallam County Economic Development Council Dear Jim, At its meeting of February 5, 2002, the Port Angeles City Council approved the 2002 agreement with the Economic Development Council. Enclosed are two (2) copies of the agreement. Please have both copies signed and return one fully executed copy to my attention. If I can be of any further assistance, please feel free to contact me. I can be reached at 417 -4634. Sincerely yours, Becky J. Upt.n, CMC City Clerk/Management Assistant Enclosure 321 EAST FIFTH STREET P 0 BOX 1 150 PORT ANGELES, WA 98362-0217 PHONE 360- 417 -4500 FAX 360- 417 -4509 TTY 360- 417 -4645 E -MAIL CITYMGR @CI PORT-ANGELES WA US 5. /3(0 A. General Goals. AGREEMENT THIS AGREEMENT is entered into this 5 of 1. PERFORMANCE BY THE CONTRACTOR. 2002, by and between the City of Port Angeles, Washington, a municipal corporation, hereinafter called "City and the Clallam County Economic Development Council, Inc., a non profit corporation, hereinafter called "Contractor WHEREAS, the City is a municipal corporation of the State of Washington authorized to contract for economic development services; and, WHEREAS, it is in the public interest for economic development activities to be performed that will enhance the economy and employment opportunities in the City of Port Angeles; and, WHEREAS, the City has need of research and assistance in regards to these and other aspects of its operations; NOW, THEREFORE, in consideration of the above representations and the mutual covenants and agreements herein, it is agreed by the parties as follows: The Contractor shall use its capabilities to promote and enhance economic development and employment opportunities in the City in accordance with the mission and goals established by the Contractor's Board of Directors as set forth in the attached Exhibit "A The Contractor shall use its resources to jointly market the facilities and capabilities of the City to new and existing businesses with the goals of increasing City revenues and general employment opportunities for City residents. 5. 13&e B. Business Retention. Exnansion and Recruitment. (1) The Contractor shall work cooperatively with the City in the development and implementation of the Port Angeles Works Program and shall serve as a general economic development research and reference service for the City. In this capacity the Contractor shall perform such functions as conducting ongoing basic market research, identification of target markets, provision of business retention, expansion and recruitment services aimed at existing businesses and target markets, participating with the City in the process of responding to inquiries, site selection consultation, and case management, regarding existing or new industries or other commercial ventures which seek information concerning the facilities and resources managed by the City or which may involve properties and/or infrastructure within the Port Angeles Urban Growth Area (UGA). (2) The Contractor shall, upon request, and at reasonable times and in a reasonable manner provide effective industrial marketing guidance to City staff and provide services in the development and execution of programs aimed at better planning, utilization, promotion, and advertisement of community services, facilities, infrastructure, and property. (3) The Contractor shall maintain and enhance working relations with existing businesses to assist them with start-up and expansion needs, technical assistance, access to business counseling and financing resources including aid and assistance to at -risk businesses. (4) The Contractor shall assist the City in preparing replies to inquires received by the City or the Contractor regarding City facilities and resources or which may involve properties and/or infrastructure within the Port Angeles Urban Growth Area (UGA) relative to economic development retention and growth opportunities. (5) The Contractor shall assist the City in applying for and administering economic development related grants, including any potential to support the development of infrastructure or to leverage the Port Angeles Works Program. (6) The Contractor shall maintain a community profile specific to the greater Port Angeles area, which highlights demographic and development data customarily of interest to industrial /commercial developers. (7) The Contractor shall work with the City in the maintenance and periodic update of the Commercial and Industrial Property and Infrastructure Database for the Port Angeles vicinity. (8) The Contractor shall work with the City to research, identify, and implement the addition of new development incentive programs or packages as may be applicable to Port Angeles economic development efforts. C. Prosnect Management The Contractor will be responsible for client services for industrial and business retention, expansion and/or relocation. The Contractor will represent the attributes for appropriate site locations within the City that meet the prospects criteria. In such dealings, the Contractor shall participate in the handling of prospects, in accordance with the following guidelines: (1) Contacts made directly to the Contractor or referred to Contractor by DCTED. (a) The Contractor will provide general information and other data requested by the prospect. Within 24 hours of being contacted regarding a prospect, the Contractor shall notify the City Manager, or his designee, by phone and/or e-mail, regarding details of the contact. (b) If the prospect indicates an interest in specific business locations, the Contractor shall notify other affected parties and property owners as appropriate, make appropriate introductions, and assist in follow -up marketing. (c) If the prospect requests confidentiality, the Contractor will keep the City Manager, or his designee, fully informed without revealing the identity of the prospect. (2) Contacts made directly to the City (a) The City shall rely on the Contractor to supply recruitment information and services as described in 1A and lB. When the City receives a direct contact or is managing a development prospect and desires support from the Contractor, it need only request such assistance be made within a reasonable time frame, and Contractor will render such assistance. (3) Public Events. and Media Public events such as media conferences, ground breaking ceremonies, and ribbon cuttings will be coordinated with the City Manager or his designee, the siting jurisdiction, and other affected partners. D. The Contractor shall provide to the City and to such persons as the City may direct, free of additional charge, materials prepared by the Contractor. E. The Contractor shall maintain records and report to the City as follows: (1) The Contractor shall maintain accounts and records that accurately reflect the revenues and costs for the Contractor's activities under this Contract. These financial records, and all records related to the performance of this Contract, shall be available for City inspection. (2) The Contractor shall provide the City with quarterly reports fully describing what work has been performed pursuant to this Contract, and including a current statement of revenues and costs. 3 (3) The Contractor 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. (4) The Contractor shall provide the City with an annual budget, including current salaries and benefits for all employees and classifications of employees and shall notify the City within 30 days of any increases in salaries or benefits from the previous year. 2. PERFORMANCE BY THE CITY. A. For the "Core" services rendered by the Contractor, the City will provide, by payment in cash, the amount of $35,000 and, in -kind telephone service, in an amount not to exceed $2,500. B. Payment by the City shall be due upon receipt and acceptance by the City Manager of the Contractor's quarterly report as required under Paragraph 1 E of this Contract. The Contractor will invoice the City for all quarterly payments. 3. TERM. This agreement shall be for a term of one year, commencing on January 1, 2002. 4. ASSIGNMENT. This agreement may not be assigned by either party to this agreement except by signed amendment. 5. BREACH. A. In the event of either party's material breach of the terms or conditions of this Contract, the non breaching party reserves the right to withhold payments or services until corrective action has been taken or completed. However, the party shall not exercise this right until they have given written notice of such material breach to the breaching party and ten days have passed since the receipt of such notice. This option is in addition to and not in lieu of the parties' right to terminate this Contract or any other right which State law offers for breach of contract. B. If either party shall materially breach any of the covenants undertaken herein or any of the duties imposed upon it by this Contract, such material breach shall entitle the other party to terminate this Contract, provided that the party desiring to terminate for such cause shall give the offending party at least twenty days' written notice, specifying the particulars wherein it is claimed that there has been a violation hereof, and if at the end of such time, the party notified has not removed the cause of complaint, or remedied the purported violation, then the termination of this Contract shall be deemed complete. 6. NON DISCRIMINATION. A. The Contractor shall conduct its business in a manner which assures fair, equal and non- discriminatory treatment of all persons, without respect to race, creed or national origin, and, in particular: B. The Contractor shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity /affirmative action requirements; and, C. The Contractor shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran's status, disabled veteran condition, physical or mental handicap, or national origin. 7. HOLD HARMLESS AND INDEMNIFICATION. The Contractor shall protect, defend, save harmless, and indemnify the City, its officers, agents, and employees from and against any and all claims, damages, losses, and expenses, including reasonable attorney's fees, occurring, arising, or resulting from supplying work, services, materials, or supplies in connection with the performance of this Contract. 8. ENTIRE CONTRACT. The parties agree that this Contract is the complete expression of the terms hereto and any oral representation or understanding not incorporated herein is excluded. Further, any modification of this Contract shall be in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereto caused this Contract to be executed the day and year first herein above written. CITY OF PORT ANGELES CLALLAM COUNTY ECONOMIC DEVELOPMEN COUN IL ATTEST: By r 'Mayor Glenn Wiggins API) t WED AS TO FORM: Craig D.'riutson, City Attorney Presider2 ce President F• \AGREEMENTS &CONTRACTS \EDC -2002 wpd 5 11, 4 CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL STRATEGIC WORK PLAN 2001 -2003 Vision Statement Mission Statement 1 ex/' 4- Create a connected and interdependent community in business, government, education and healthcare to improve economic opportunities and enrich the life of each and every citizen. The Clallam County Economic Development Council is a private, non-profit organization and a catalyst for economic acceleration that provides leadership to build collaboration, and encourage a diverse economy, while applying sound stewardship. This document is a working document, which may be added to and/or altered by the Board of Directors to address issues that may arise during the 2001 -2003 period. "Actions" are created to provide a method to accomplish the mission of the EDC and meet the needs of the community for economic diversity. 2 Education Priority Ensure that the region maintains a qualified workforce by developing a community that embraces change and has access to high quality life -long education. Action #1: Develop and deliver comprehensive post- secondary career opportunities and make available to employers and workers 24/7. Action #2: Expand current business and education summit through Peninsula College. Action #3: Service Corps of Retired Executives (SCORE) Provide administrative support, market services to the community and facilitate business start-up related workshops. Action #4: Small Business Development Center (SBDC) Provide administrative support, market services to the community and facility business development workshops. 3 Jobs Priority Invest community resources in the creation of a diverse set of new job opportunities in sustainable industry sectors, raising the median household income for Clallam County. Action #1: Implement a Business Incubator with access physically in the east, central and west portions of the County and provide opportunities for business counseling and education remotely. Action #2: Identify four industry segments, which have significant unfilled job opportunities in the region and could be remotely supported from Clallam County. Action #3: Develop and implement a business retention and expansion program for Clallam County that identifies and addresses current and future issues in the community. Immediately engage high power usage companies in Clallam County. Action #4: Participate as a partner of the Washington State trade show consortium to share costs in attending trade shows and generating business leads for recruitment of businesses to Clallam County. Action #5: Facilitate collaborative development of regional marketing materials and advertising campaigns for recruitment of Puget Sound businesses. Action #6: Revise and promote /market County Opportunity Fund policies to create more capital and inter jurisdictional opportunities for community development projects. 4 Marketing Priority Implement a tangible program to communicate the collaborative actions and resource sharing occurring in the community; encouraging citizens to adopt connected ways of thinking and demonstrating the "Connected Economy" as enhancing our shared vision to maintain a desirable community in which to work and live. Action #1: Develop a weekly column in Peninsula Daily News, Sequim Gazette, Forks Forum and Peninsula Business Journal, and make available on BridgeWorks and CCEDC web site. Action #2: Improve interagency communication. Create a clearinghouse for the positive activities of various agencies that will gather, distill and disseminate information back to agencies (I) Port Angeles (2) expanding to countywide. Action #3: Provide interagency communication to the public. Action #4: Marketing of CCEDC services. 5 Access Priority Make sure one's zip code does not limit one's access to government services, business, healthcare or education opportunities, thus saving time and money and improving service availability and quality. Action #1: Create a GIS map of all public /private infrastructures. Action #2: Maintain demographics and community statistics for Data Book publication and website. Action #3: Maintain industrial database on Washington Development Network website for available Clallam County properties. Action #4: Create access to current available commercial properties and make available 24/7. 6 Entrepreneur Priority Become a community of creative solutions where government, education and business recognize, appreciate and adopt an entrepreneurial spirit. Action #1: Develop an angel /venture capital network. Action #2: Empower an individual within each agency to coordinate services for new development or business development projects, taking a customer service approach. Action #3: Collaborate between public agencies to provide business development services in a timely manner to clients and business inquiries. 7 •4 Community Development Priority Facilitate community projects and practices to promote collaborative behavior, connectivity and changed spending, investing and budgeting. Action #1: Continue Project Management for the following projects: Sappho Gap; Wireless Communication Planning for Clallam PUD. Action #2: Create more opportunities for improved healthcare services and medical insurance coverage, including Medicare recipients. Action #3: Work with North Olympic Visitors Convention Bureau (NOPVCB) to facilitate a golf tournament for fund raising and business networking opportunities. Action #4: CCEDC Membership: Increase membership participation; review dues structure to increase overall annual revenues. Action #5: Research and apply for outside grants, funding and loans for community improvement projects. MEMO CITY ATTORNEY Craig Knutson City Attorney [4531] Dennis Dickson Sr. Assistant City Attorney [4532] Candace Kathol Legal Assistant [4576] Diana Lusby Administrative Assistant [4530] Jeanie DeFrang Administrative Assistant [4530] W A S H I N G T O N U.S.A. Date: February 6, 2002 To: Tim Smith, Economic Development Director VBecky Upton, City Clerk From: Craig D. Knutson, City Attorney Subject: EDC and PADA Contracts After the February 5, 2002 City Council meeting, Councilman Williams told me that he had intended to ask why the EDC and PADA contracts for 2002 had inconsistent provisions. Apparently, he forgot to ask his question during the consent agenda portion of the meeting. Specifically, he wondered why the EDC contract contained a non discrimination clause but the PADA contract did not and why the PADA contract required a $1 million insurance policy but the EDC contract did not. I bring this to your attention so that next year you are prepared to address these apparent inconsistencies. /r--deen Craig D. Knn City Attorney CDK:dl C \DMEMOkk -TSm h 5. l3Lv May 1, 2001 Sincerely yours, Enclosure W A S H I N G T O N U.S.A. CITY MANAGER'S OFFICE Rhonda Matlock Operations Manager Clallam County Economic Development Council P. O. Box 1085 Port Angeles, WA 98362 Re: City of Port Angeles and EDC 2001 Agreement Dear Rhonda, Enclosed for your file is a fully executed agreement between the City of Port Angeles and the Clallam County Economic Development Council for 2001. Please let me know if I can be of any further assistance. Becky J. Upt. n, C C City Clerk/Management Assistant 321 EAST FIFTH STREET P 0. BOX 1 150 PORT ANGELES, WA 98362 -0217 PHONE. 360- 417 -4500 FAX. 360- 417-4509 TTY 360- 417 -4645 E-MAIL• CITYMGR@a CI PORT-ANGELES WA US April 26, 2001 Tim Smith City of Port Angeles 321 East Fifth Street PO Box 1150 Port Angeles, WA 98362 Dear Tim: RE: City of Port Angeles and EDC Agreement CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL Enclosed herewith please find two (2) original Agreements between the City of Port Angeles and the Clallam County EDC both copies have been signed by the President and Vice President of the EDC and the 2001 Work Plan has been attached. Kindly return one fully executed copy for our files. If you have any questions, please let me know. Thank you. Rhonda Matlock Operations Manager /rsm Encl. PO BOX 1085 102 E FRONT PORT ANGELES, WA 98362 -0204 PHONE 360 457 7793 FAX 360 452 -9618 WEB www ccedc org E -MAIL ccedc @clallam org AGREEMENT THIS AGREEMENT is entered into this /'j ay of 2001, by and between the City of Port Angeles, Washington, a municipal corporation, hereinafter called "City and the Clallam County Economic Development Council, Inc., a non profit corporation, hereinafter called "Contractor WHEREAS, the City is a municipal corporation of the State of Washington authorized to contract for economic development services; and, WHEREAS, it is in the public interest for economic development activities to be performed that will enhance the economy and employment opportunities in the City of Port Angeles; and, WHEREAS, the City has need of research and assistance in regards to these and other aspects of its operations; NOW, THEREFORE, in consideration of the above representations and the mutual covenants and agreements herein, it is agreed by the parties as follows: 1. PERFORMANCE BY THE CONTRACTOR. A. General Goals. The Contractor shall use its capabilities to promote and enhance economic development and employment opportunities in the City in accordance with the mission and goals established by the Contractor's Board of Directors as set forth in the attached Exhibit "A The Contractor shall use its resources to jointly market the facilities and capabilities of the City to new and existing businesses with the goals of increasing City revenues and general employment opportunities for City residents. 5. 130Q B. Core Business Recruitment and Assistance Program. (1) The Contractor shall work cooperatively with the City in the development and implementation of the Port Angeles Works Program and shall serve as a general economic development research and reference service for the City. In this capacity the Contractor shall perform such functions as conducting ongoing basic market research, identification of target markets, provision of generic regional marketing and recruitment services aimed at target markets, participating with the City in the process of responding to inquiries, site selection consultation, and case management, regarding new industries or other commercial ventures which seek information concerning the facilities and resources managed by the City or which may involve properties and/or infrastructure within the Port Angeles Urban Growth Area (UGA). (2) The Contractor shall, upon request, and at reasonable times and in a reasonable manner provide effective industrial marketing guidance to City staff and provide services in the development and execution of programs aimed at better planning, utilization, promotion, and advertisement of community services, facilities, infrastructure, and property. (3) The Contractor shall maintain and enhance working relations with existing businesses to assist them with start-up and expansion needs, technical assistance, access to business counseling and financing resources including aid and assistance to at -risk businesses. (4) The Contractor shall assist the City in preparing replies to inquires received by the City or the Contractor regarding City facilities and resources or which may involve properties and/or infrastructure within the Port Angeles Urban Growth Area (UGA) relative to economic development retention and growth opportunities. (5) The Contractor shall assist the City in applying for and administering economic development related grants, including any potential to support the development of infrastructure or to leverage the Port Angeles Works Program. (6) The Contractor shall maintain a community profile specific to the greater Port Angeles area, which highlights demographic and development data customarily of interest to industrial /commercial developers. (7) The Contractor shall work with the City in the maintenance and periodic update of the Commercial and Industrial Pronertv and Infrastructure Database for the Port Angeles vicinity. (8) The Contractor shall work with the City to research, identify, and implement the addition of new development incentive programs or packages as may be applicable to Port Angeles economic development efforts. C. Prosnect Management The Contractor will be responsible for client services for industrial and business retention, expansion and/or relocation. The Contractor will represent the attributes for appropriate site locations within the City that meet the prospects criteria. In such dealings, the Contractor shall participate in the handling of prospects, in accordance with the following guidelines: (1) Contacts made directly to the Contractor or referred to Contractor by DCTED. (a) The Contractor will provide general information and other data requested by the prospect. Within 24 hours of being contacted regarding a prospect, the Contractor shall notify the City Manager, or his designee, by phone and/or e-mail, regarding details of the contact. (b) If the prospect indicates an interest in specific business locations, the Contractor shall notify other affected parties and property owners as appropriate, make appropriate introductions, and assist in follow -up marketing. (c) If the prospect requests confidentiality, the Contractor will keep the City Manager, or his designee, fully informed without revealing the identity of the prospect. (2) Contacts made directly to the City (a) The City shall rely on the Contractor to supply recruitment information and services as described in 1A and 1B. When the City receives a direct contact or is managing a development prospect and desires support from the Contractor, it need only request such assistance be made within a reasonable time frame, and Contractor will render such assistance. (3) Public Events, and Media Public events such as media conferences, ground breaking ceremonies, and ribbon cuttings will be coordinated with the City Manager or his designee, the siting jurisdiction, and other affected partners. D. The Contractor shall provide to the City and to such persons as the City may direct, free of additional charge, materials prepared by the Contractor. E. The Contractor shall maintain records and report to the City as follows: (1) The Contractor shall maintain accounts and records that accurately reflect the revenues and costs for the Contractor's activities under this Contract. These financial records, and all records related to the performance of this Contract, shall be available for City inspection. (2) The Contractor shall provide the City with quarterly reports fully describing what work has been performed pursuant to this Contract, and including a current statement of revenues and costs. (3) The Contractor 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. (4) The Contractor shall provide the City with an annual budget, including current salaries and benefits for all employees and classifications of employees and shall notify the City within 30 days of any increases in salaries or benefits from the previous year. 2. PERFORMANCE BY THE CITY. A. For the "Core" services rendered by the Contractor, the City will provide, by payment in cash, the amount of $33,000 and, in -kind telephone service, in an amount not to exceed $2,500. B. Payment by the City shall be due upon receipt and acceptance by the City Manager of the Contractor's quarterly report as required under Paragraph 1 E of this Contract. The Contractor will invoice the City for all quarterly payments. 3. TERM. This agreement shall be for a term of one year, commencing on January 1, 2001. 4. ASSIGNMENT. This agreement may not be assigned by either party to this agreement except by signed amendment. 5. BREACH. A. In the event of either party's material breach of the terms or conditions of this Contract, the non breaching party reserves the right to withhold payments or services until corrective action has been taken or completed. However, the party shall not exercise this right until they have given written notice of such material breach to the breaching party and ten days have passed since the receipt of such notice. This option is in addition to and not in lieu of the parties' right to terminate this Contract or any other right which State law offers for breach of contract. B. If either party shall materially breach any of the covenants undertaken herein or any of the duties imposed upon it by this Contract, such material breach shall entitle the other party to terminate this Contract, provided that the party desiring to terminate for such cause shall give the offending party at least twenty days' written notice, specifying the particulars wherein it is claimed that there has been a violation hereof, and if at the end of such time, the party notified has not removed the cause of complaint, or remedied the purported violation, then the termination of this Contract shall be deemed complete. 6. NON DISCRIMINATION. A. The Contractor shall conduct its business in a manner which assures fair, equal and non- discriminatory treatment of all persons, without respect to race, creed or national origin, and, in particular: B. The Contractor shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity /affirmative action requirements; and, C. The Contractor shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran's status, disabled veteran condition, physical or mental handicap, or national origin. 7. HOLD HARMLESS AND INDEMNIFICATION. ATTEST: The Contractor shall protect, defend, save harmless, and indemnify the City, its officers, agents, and employees from and against any and all claims, damages, losses, and expenses, including reasonable attorney's fees, occurring, arising, or resulting from supplying work, services, materials, or supplies in connection with the performance of this Contract. 8. ENTIRE CONTRACT. The parties agree that this Contract is the complete expression of the terms hereto and any oral representation or understanding not incorporated herein is excluded. Further, any modification of this Contract shall be in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereto caused this Contract to be executed the day and year first herein above written. CITY OF PORT ANGELES Becky J. U APPOVED AS TO FORM: Craig D son, City Attorney CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL F: \AGREEMENTS &CONTRACTS \edc -2001 r'f' AN CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL STRATEGIC WORK PLAN 2001 -2003 Vision Statement Create a connected and interdependent community in business, government, education and healthcare to improve economic opportunities and enrich the life of each and every citizen. Mission Statement The Clallam County Economic Development Council is a private, non-profit organization and a catalyst for economic acceleration that provides leadership to build collaboration, and encourage a diverse economy, while applying sound stewardship. 1 This document is a working document, which may be added to and/or altered by the Board of Directors to address issues that may arise during the 2001 -2003 period. "Actions" are created to provide a method to accomplish the mission of the EDC and meet the needs of the community for economic diversity. 2 Education Priority Ensure that the region maintains a qualified workforce by developing a community that embraces change and has access to high quality life -long education. Action #1: Develop and deliver comprehensive post secondary career opportunities and make available to employers and workers 24/7. Action #2: Expand current business and education summit through Peninsula College. Action #3: Service Corps of Retired Executives (SCORE) Provide administrative support, market services to the community and facilitate business start-up related workshops. Action #4: Small Business Development Center (SBDC) Provide administrative support, market services to the community and facility business development workshops. 3 Jobs Priority Invest community resources in the creation of a diverse set of new job opportunities in sustainable industry sectors, raising the median household income for Clallam County. Action #1: Implement a Business Incubator with access physically in the east, central and west portions of the County and provide opportunities for business counseling and education remotely. Action #2: Identify four industry segments, which have significant unfilled job opportunities in the region and could be remotely supported from Clallam County. Action #3: Develop and implement a business retention and expansion program for Clallam County that identifies and addresses current and future issues in the community. Immediately engage high power usage companies in Clallam County. Action #4: Participate as a partner of the Washington State trade show consortium to share costs in attending trade shows and generating business leads for recruitment of businesses to Clallam County. Action #5: Facilitate collaborative development of regional marketing materials and advertising campaigns for recruitment of Puget Sound businesses. Action #6: Revise and promote /market County Opportunity Fund policies to create more capital and inter jurisdictional opportunities for community development projects. 4 Marketing Priority Implement a tangible program to communicate the collaborative actions and resource sharing occurring in the community; encouraging citizens to adopt connected ways of thinking and demonstrating the "Connected Economy" as enhancing our shared vision to maintain a desirable community in which to work and live. Action #1: Develop a weekly column in Peninsula Daily News, Sequim Gazette, Forks Forum and Peninsula Business Journal, and make available on BridgeWorks and CCEDC web site. Action #2: Improve interagency communication. Create a clearinghouse for the positive activities of various agencies that will gather, distill and disseminate information back to agencies (1) Port Angeles (2) expanding to countywide. Action #3: Provide interagency communication to the public. Action #4: Marketing of CCEDC services. 5 Access Priority Make sure one's zip code does not limit one's access to government services, business, healthcare or education opportunities, thus saving time and money and improving service availability and quality. Action #1: Create a GIS map of all public /private infrastructures. Action #2: Maintain demographics and community statistics for Data Book publication and website. Action #3: Maintain industrial database on Washington Development Network website for available Clallam County properties. Action #4: Create access to current available commercial properties and make available 24/7. 6 Entrepreneur Priority Become a community of creative solutions where government, education and business recognize, appreciate and adopt an entrepreneurial spirit. Action #1: Develop an angel /venture capital network. Action #2: Empower an individual within each agency to coordinate services for new development or business development projects, taking a customer service approach. Action #3: Collaborate between public agencies to provide business development services in a timely manner to clients and business inquiries. 7 Community Development Priority Facilitate community projects and practices to promote collaborative behavior, connectivity and changed spending, investing and budgeting. Action #1: Continue Project Management for the following projects: Sappho Gap; Wireless Communication Planning for Clallam PUD. Action #2: Create more opportunities for improved healthcare services and medical insurance coverage, including Medicare recipients. Action #3: Work with North Olympic Visitors Convention Bureau (NOPVCB) to facilitate a golf tournament for fund raising and business networking opportunities. Action #4: CCEDC Membership: Increase membership participation; review dues structure to increase overall annual revenues. Action #5: Research and apply for outside grants, funding and loans for community improvement projects. 8 PORTANGELES W A S H I N G T O N U.S.A. CITY MANAGER'S OFFICE June 8, 2000 Ms. Rhonda Matlock Operations Manager Clallam County Economic Development Council P. O. Box 1085 Port Angeles, WA 98362 Re: Agreement between the City of Port Angeles and the Clallam County Economic Development Council Dear Rhonda, At its meeting of June 6, 2000, the Port Angeles City Council approved the agreement with the Economic Development Council for the contract year 2000. A fully executed copy of the agreement is enclosed for your files. If I can be of any further assistance, please feel free to contact me. I can be reached at 417 -4634. Sincerely yours, Becky J. Up on, CMC City Clerk/Management Assistant Enclosure Copy: Tim Smith 321 EAST FIFTH STREET P 0 BOX 1 150 0 PORT ANGELES, WA 98362-0217 PHONE 360 -417 -4500 0 FAX 360 -417- 4509 0 TTY 360 -417 -4645 E -MAIL CITYMGR@CI PORT ANGELES WA US S. 151p c THIS AGREEMENT is entered into this -day of 2000, by and between the City of Port Angeles, Washington, a municipal corporation, hereinafter called "City and the Clallam County Economic Development Council, Inc., a non -profit corporation, hereinafter called "Contractor WHEREAS, the City is a municipal corporation of the State of Washington authorized to contract for economic development services; and, WHEREAS, it is in the public interest for economic development activities to be performed that will enhance the economy and employment opportunities in the City of Port Angeles; and, WHEREAS, the City has need of research and assistance in regards to these and other aspects of its operations; NOW, THEREFORE, in consideration ofthe above representations and the mutual covenants and agreements herein, it is agreed by the parties as follows: A. General Goals. AGREEMENT 1. PERFORMANCE BY THE CONTRACTOR. The Contractor shall use its capabilities to promote and enhance economic development and employment opportunities in the City in accordance with the mission and goals established by the Contractor's Board of Directors as set forth in the attached Exhibit "A The Contractor shall use its resources to jointly market the facilities and capabilities of the City to new and existing businesses with the goals of increasing City revenues and general employment opportunities for City residents. 5. 131Pc. B. Core Business Recruitment and Assistance Program. (1) The Contractor shall work cooperatively with the City in the development and implementation of the Port Angeles Works Program and shall serve as a general economic development research and reference service for the City. In this capacity the Contractor shall perform such functions as conducting ongoing basic market research, identification of target markets, provision of generic regional marketing and recruitment services aimed at target markets, participating with the City in the process of responding to inquiries, site selection consultation, and case management, regarding new industries or other commercial ventures which seek information concerning the facilities and resources managed by the City or which may involve properties and/or infrastructure within the Port Angeles Urban Growth Area (UGA). (2) The Contractor shall, upon request, and at reasonable times and in a reasonable manner provide effective industrial marketing guidance to City staff and provide services in the development and execution of programs aimed at better planning, utilization, promotion, and advertisement of community services, facilities, infrastructure, and property. (3) The Contractor shall maintain and enhance working relations with existing businesses to assist them with start-up and expansion needs, technical assistance, access to business counseling and financing resources including aid and assistance to at -risk businesses. (4) The Contractor shall assist the City in preparing replies to inquires received by the City or the Contractor regarding City facilities and resources or which may involve properties and /or infrastructure within the Port Angeles Urban Growth Area (UGA) relative to economic development retention and growth opportunities. (5) The Contractor shall assist the City in applying for and administering economic development related grants, including any potential to support the development of infrastructure or to leverage the Port Angeles Works Program. (6) The Contractor shall maintain a community profile specific to the greater Port Angeles area, which highlights demographic and development data customarily of interest to industrial/commercial developers. (7) The Contractor shall work with the City in the maintenance and periodic update of the Commercial and Industrial Property and Infrastructure Database. (8) The Contractor shall work with the City to research, identify, and implement the addition of new development incentive programs or packages as may be applicable to Port Angeles economic development efforts. C. Prospect Management The Contractor will be responsible for client services for industrial and business retention, expansion and/or relocation. The Contractor will represent the attributes for appropriate site locations within the City that meet the prospects criteria. In such dealings, the Contractor shall participate in the handling of prospects, in accordance with the following guidelines: (1) Contacts made directly to the Contractor or referred to Contractor by DCTED. (a) The Contractor will provide general information and other data requested by the prospect. Within 24 hours of being contacted regarding a prospect, the Contractor shall notify the City Manager, or his designee, by phone and/or e-mail, regarding the contact. (b) If the prospect indicates an interest in specific business locations, the Contractor shall notify other affected parties and property owners as appropriate, make appropriate introductions, and assist in follow -up marketing. (c) If the prospect requests confidentiality, the Contractor will keep the City Manager, or his designee, fully informed without revealing the identity of the prospect. (2) Contacts made directly to the City (a) The City shall rely on the Contractor to supply recruitment information and services as described in 1A and 1B. When the City receives a direct contact or is managing a development prospect and desires support from the Contractor, it need only request such assistance be made within a reasonable time frame, and Contractor will render such assistance:. (3) Public Events. and Media E. The Contractor shall maintain records and report to the City as follows: 3 Public events such as media conferences, ground breaking ceremonies, and ribbon cuttings will be coordinated will the siting jurisdiction and other partners. D. The Contractor shall provide to the City and to such persons as the City may direct, free of additional charge, materials prepared by the Contractor. (1) The Contractor shall maintain accounts and records that accurately reflect the revenues and costs for the Contractor's activities under this Contract. These financial records, and all records related to the performance of this Contract, shall be available for City inspection. (2) The Contractor shall provide the City with quarterly reports fully describing what work has been performed pursuant to this Contract, and including a current statement of revenues and costs. (3) The Contractor 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. (4) The Contractor shall provide the City with an annual budget, including current salaries and benefits for all employees and classifications of employees and shall notify the City within 30 days of any increases in salaries or benefits from the previous year. 2. PERFORMANCE BY THE CITY. A. For the "Core" services rendered by the Contractor, the City will provide, by payment in cash, the amount of $20.000 and, in -kind telephone service, an amount not to exceed $2.500 B. Payment by the City shall be due upon receipt and acceptance by the City Manager of the Contractor's quarterly report as required under Paragraph lE ofthis Contract. The Contractor will invoice the City for all quarterly payments. 3. TERM. This agreement shall be for a term of one year, commencing on January 1, 2000. 4. ASSIGNMENT. This agreement may not be assigned by either party to this agreement except by signed amendment. 5. BREACH. A. In the event of either party's material breach of the terms or conditions of this Contract, the non breaching party reserves the right to withhold payments or services until corrective action has been taken or completed. However, the party shall not exercise this right until they have given written notice of such material breach to the breaching party and ten days have passed since the receipt of such notice. This option is in addition to and not in lieu of the parties' right to terminate this Contract or any other right which State law offers for breach of contract. B. If either party shall materially breach any of the covenants undertaken herein or any of the duties imposed upon it by this Contract, such material breach shall entitle the other party to terminate this Contract, provided that the party desiring to terminate for such cause shall give the offending party at least twenty days' written notice, specifying the particulars wherein it is claimed that there has been a violation hereof, and if at the end of such time, the party notified has not removed the cause of complaint, or remedied the purported violation, then the termination of this Contract shall be deemed complete. 6. NON DISCRIMINATION. A. The Contractor shall conduct its business in a manner which assures fair, equal and non- discriminatory treatment of all persons, without respect to race, creed or national origin, and, in particular: B. The Contractor shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity /affirmative action requirements; and, C. The Contractor shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran's status, disabled veteran condition, physical or mental handicap, or national origin. 7. HOLD HARMLESS AND INDEMNIFICATION. The Contractor shall protect, defend, save harmless, and indemnify the City, its officers, agents, and employees from and against any and all claims, damages, losses, and expenses, including reasonable attorney's fees, occurring, arising, or resulting from supplying work, services, materials, or supplies in connection with the performance of this Contract. 8. ENTIRE CONTRACT. The parties agree that this Contract is the complete expression of the terms hereto and any oral representation or understanding not incorporated herein is excluded. Further, any modification of this Contract shall be in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereto caused this Contract to be executed the day and year first herein above written. CITY OF PORT ANGELES Becky ATTEST: on, ity Cle VED -AS TO FORM: L�cc'L� 'Craig-D. Knutson, City Attorney CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL resident Vice Pr sident 5 C:\ DATA \WP \WP60 \PAWORKS \Edcon2000.wpd „'f5',' k l,rl ,tHl'tlSaG� 2000 Program of Work Consideration by Executive Board as Focus for Planning Session ala+ lRfd,4lma: ,,I Tern'SrY11ri The Council has not undertaken a major strategic planning process for the past six years. While it is true that we have evaluated our strategic direction annually during the work planning process, staff feels it is prudent to undertake a more comprehensive process that includes public and stakeholder involvement. Much has changed in our political, organisational and economic environment. The Council needs to redefine /confirm its niche and programs. Action Undertake and complete strategic planning process that identifies long terms goals objectives and economic development responsibilities for the Council_ 4 i c l d;�ax,q �r” 4'l Exhibit A it i I 4 11 Implement SBDC marketing program targeting mid size businesses. Recruit new SCORE counselor. Create e- commerce assistance team k i #si;7ltl) R e� ,.44A a; f5dtb l "ri F 4ls rlSr. We have a successful program that must be expanded_ The limited counseling resources must be targeted toward larger clients. SBDC resources can be freed up by expanding SCORE resources. It must be said that we will need to recruit new a new Counselor; Chuck Lamb is retiring. Stiff recommends institutionalizing the business retention and expansion pilot project as a program activity_ An important component of retention and expansion will be providing assistance to existing firms with adapting to e- commerce and changing technologies. Members of the STMA and Council have volunteered to assist the Council with developing a high tech counseling capacity. implement a business and job retention program spanning Clallam and Jefferson counties. Exhibit "A" I` ll 1"�I� nl'q}Crpr��Z r{1,p ^ri {opin� I Sr ,'V ;3 1 Ci ;la,iE� FE lit lia, „s Implement 2000 marketing and recruitment plan Conduct Seattle/ Victoria business seminars The external marketing component of the Council is fairly well established_ With the repayment of the FTC loan, business recruitment seminars arc being planned for Seattle and Victoria, The Council will work with APCO Associates to assure that the seminars leverage any activity undertaken by the City of Port Angeles. Under contract, work with the Port to effectively market Port properties as well as general economic development is;1JYI twori4{ 4ti','' r R RIS7;Y, {Yr, Ills, }s ;LBJd A' !il' e ,i'r T s14GP1 r r'�'�I.P 5 f ;'S brPiP VTP. 1 C i i vs si i;{!rr i ;1ir N:-.l S” r i r `il grg �l'r �$r�,�l��l S t J�� ;ICI ;II r; ��i i�r- di li¢ r %'1�;}!llble +,n�s,}i,4{;�r, li� I The Council is managing a number of projects for our governmental partners on a fee for service basis_ We should continue to seek these opportunities that arc consistent with the goals and objectives of the organization. Complete the Clallam Bay Sekiu Community Center Project Complete Comprehensive Timber Inventory Complete Fairchild Infrastructure Project a b i t r YA. 141 Jed #i ,ilfii# iiE#t'6ril iCA There is not a 'bigger' issue than telecommunications. The Council's appropriate role is to convene the public and private players to assure communication and coordination. ,!r, ,u�'nnZr,�{ �sna r sm .1,,r i1 try a i 9 Y ['DER rc F„Mq„, �iJ y x ),I 1 ;p S, "li`Vi,iJ�:,,, #31�Jliw,l :er<Ji, i�.l.�uu.����,,.� t��,����:E ��dT1���W+ -L��iu .uvuuu:u.JA IE�f tl$� #lk P�fi�8,b1,LIr1P� r- s'�., +'ary�rru run rar tlrr�tr r� �I ri� v� r v a I I 1 l r�iSll 14 i ��r�di 0P i #i i !a# i��s� A major challenge facing staff is how the Council addresses the many larger economic development issues facing the Peninsula and its economy. Reconstruction of the Hood Canal Bridge, ESA, and work force development are all issues that re business and economic development input. The Council is currently not engaged in these issues and we need to evaluate whether we need to become involve and if so. how. ORTANGELES W A S H I N G T O N U.S. A. CITY COUNCIL MEMO DATE: MAY 30, 2000 To: MAYOR DOYLE AND CITY COUNCIL it FROM: Timothy J. Smith, Economic Development Dire SUBJECT: City EDC Contract Year 2000 Summary: Consistent with the 2000 City Budget, staff has prepared the attached contract with Clallam County EDC for the provision of services during the year 2000. The contract provides for the City's contribution to typical county -wide economic development services. Recommendation: City Council authorize the Mayor to sign the attached contract with the Clallam County Economic Development Council for 2000. Background Analysis: Consistent with the proposed 2000 City Budget, staff has prepared the attached contract with Clallam County EDC for the provision of economic development services. The agreement outlines terms, conditions, services, products and delivery time frames, and has been developed consistent with the 2000 Work Plan for the City Economic Development Program, Port Angeles Works! The contract for 2000 is similar to previous annual agreements to include typical services found in earlier contracts. Highlights of the agreement include a Core Business Recruitment and Assistance Program, and maintenance of the Industrial Property and Infrastructure Inventory. The contract amount for the year 2000 is $20,000. Although the contract amount in past years has ranged as high as $35,000, the higher valued contract periods reflected a greater level of contacted tasks which were pertinent to Port Angeles- specific economic development tasks, as opposed to those tasks which are applicable to the regional efforts performed by the EDC. May 8, 2000 Becky J. Upton City Clerk P.O. Box 1150 Port Angeles, WA 98362 Re: Agreement: City of Port Angeles and the Clallam County EDC Dear Ms. Upton: Enclosed for your attention is the Agreement between the City of Port Angeles and the Clallam County Economic Development Council. President Jack Waud and Vice President Bill Peach have signed the Agreement on behalf of the EDC. If you have any questions, please do not hesitate to contact me. Thank you. Sincerely, Rhonda Matlock Operations Manager rmatlock @clallam.org /rsm Encl. CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL 1) Et10\11 I MAY I 0 2000 CITY OF PORT ANGELE CITY CLERK P O BOX 1085 102 E FRONT PORT ANGELES, WA 98362 -0204 PHONE 360 457 7793 FAX 360 452 -9618 WEB www.ccedc org E -MAIL ccedc @clallam org v Memorandum To: Governmental Partners CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL CC: Board of Directors; Council Membership From: Bart Phillips, Executive Director Date: Wednesday, October 20, 1999 Re: Third Quarter 1999 Report Results and activities for the quarter ending September 30, 1999. Business Recruitment and Marketing The Council attended the ICCM (Incoming Call Center Management) Trade Show in Chicago in September. Eight leads were developed with follow -up mailing and telephone contact. In addition to attendance at the Trade Show, the Council placed ads in partnership with the Port of Port Angeles and the City of Port Angeles in Call Center Magazine. The ads generated sixteen leads that were treated similar to ICCM leads. The Council generated 16 investment leads through participation at the Anaheim Woodworking and Furniture Supply show in early August. All were sent investment information and received a follow up phone call. Two specifically expressed interest in this area, and of those, one has made further contact with a request for additional information. Case and Proposal Management The Council continues to work with the Port on a number of clients attracted to the Port's multi- tenant industrial building. During the quarter, the Council prepared two proposals for call centers interested in Clallam County as a location. Two other proposals were developed for leads generated by the State of Washington. Council to Lead Trade Show Marketing Consortium The Clallam County EDC will mange participation in six industrial trade shows in 2000 for a group of eight statewide EDCs and Ports. Participants include the EDCs in Skagit, Lewis, Grant, Chelan, Yakima and Spokane counties and the Port of Olympia. This cooperative agreement reduces the Council's hard costs to $3,000 for our participation. The Council will be reimbursed for its management at 15% of costs or approximately, $5,000. The trade shows are focused on value added wood products, plastic, medical equipment and diversified manufacturing. APCO Selected to Market Port Angeles The Council has engaged the firm of APCO Associates of Seattle to prepare the strategic marketing and communications plan for the City of Port Angeles. APCO will evaluate existing target markets and develop a 3 -5 year marketing and strategic plan to attract investment to Port Angeles. To date, APCO CEO Scott Jackson has met with 40 local business leaders and elected officials to form an understanding of local development issues. From these meetings as well as meetings Scott arranged for Bart in the Seattle area, a unique approach is being developed. The draft plan will be available for review by the City in November with implementation in January 2000. Infrastructure Development South Fairchild Industrial Park In August, the Council, as contractor for the Peninsula Development Association, received $40,000 in grant funding from the Economic Development Administration to do the pre- engineering design for infrastructure to serve the Port of Port Angeles' South Fairchild Industrial Park. The design will address water, sewer, power, telecommunication and stormwater facilities for the industrial area south of the airport. This money will be matched by a local investment of $35,000 supplied by the City of Port Angeles and Port of Port Angeles. Clallam Bay /Sekiu The Council was invited to apply for, and was awarded, a $46,000 grant from the US Forest Service to fund the remaining architectural work for the renovation of the Sekiu Community /Conference Center. Clallam County will contribute $11,500 as match to the Forest Service award to fund this $57,500 project. The Council will be the project manager, and will report to the County and the Forest Service. It is expected that this project will conclude in early 2000 with the resulting construction documents to take the project to construction bid. Industrial Site Inventory The Council presented the Port Angeles inventory to the Port Angeles Works Committee in August. The inventory has been upgraded with pictures of the sites as well as site maps. A further update utilizing input from our real estate partners will occur in the last quarter of 1999. Pictures and site maps will be included for sites in Sequim, Forks and Clallam Bay /Sekiu as well as other parts of the County. Business Assistance During the Quarter, Kathleen Purdy, Small Business Development Specialist, provided counseling for over 15 businesses. During the Quarter, SCORE counselors met with approximately 26 clients. In September, the Council, in conjunction with SCORE, held an all -day marketing workshop. SCORE Marketing specialist Fred Parkinson from Jefferson County lead the workshop and was assisted by local experts Rick Hert, Laurel Black and KONP's Kevin Murphy. Fourteen entrepreneurs attended the workshop and expressed interest in future sessions. An Olympic Microloan Fund loan was made to a local business for $8,800. This company provides 2.5 jobs plus employment for the owners. The loan will allow this company to expand their product distribution and provide for potential growth opportunities. Business Retention A finding of the recently completed Business Retention and Expansion Survey was that permit processing was a major issue. Consequently, the Council held a series of focus group meetings with the development community and Clallam County Department of Community Development to identify issues and recommended actions. As a result, the Department is moving forward with reorganization of the Department to increase efficiencies. Most important, Director Bob Martin has committed to establish benchmarks for permit processing. Friday, July 02, 1999 Ms. Becky Upton City of Port Angeles 321 E. 5 St. Port Angeles, WA 98362 Dear Becky: Thank you again for the time you spent interviewing as a part of our Business Expansion and Retention Pilot Project. The enclosed summary document is the result of your work. Both the number of businesses contacted and the quality of information collected exceeded my expectations. You helped identify important issues that the Council will have to address if we are to support expansion of existing firms. Moreover, the survey confirmed that our community is a good place to do business and that our economy is growing. The Board of the Council has committed to repeating this survey in the future. I hope that your experience with the project was positive and that you would consider volunteering your time again. If you have any questions concerning the project or the results, please contact me. Thank you again for your support. Sincerely, Bart Phillips Executive Director CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL 144-1 k- v'o- I"-e. I woti.k i „,6,4(. rf iA 44 I 4 kebi Clallam County Economic Development Council, 102 East Front Street/ PO Box 1085, Port Angeles, Washington 98362 Phone 360.457 7793 Fax 360.452.9618 E -mail ccedc( clailam.ora Web www.clallam.org 5. 13Co CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL A Survey of Clallam County Business Concerning Expansion and Retention of Existing Businesses Clallam County Economic Development Council Randy Johnson, President Bill Ashley, Project Manager Bart Phillips, Executive Director The Council acknowledges the support of Washington State Department of Trade and Economic Development Port Angeles Works; Sequim Development Committee, Forks Economic Development Steering Committee; Forks Chamber of Commerce; and Clallam Bay Sekiu Chamber of Commerce July 1, 1999 P.O. BOX 1085 102 E. FRONT PORT ANGELES, WA 98362 -0204 PHONE: 360.457.7793 FAX: 360 452 -9618 WEB: www.clallam.org E -MAIL: ccedc @clallam org ACKNOWLEDGMENTS The success of this survey effort is directly proportional to the overwhelming commitment made by the citizens of Clallam County. The volunteers who unselfishly gave of their time, energy, and skills to plan, train, execute and evaluate this program deserve the credit for the results achieved. Simply put, without the overwhelming community volunteer support this program received, it couldn't have happened! In addition to the 126 owners and corporate executives who readily volunteered their valuable time and thoughts during the interviews of the 115 Clallam County businesses, the following individuals are recognized for their superior contribution to this program: Fay Alton Phil Arbeiter Ann Ashley Bill Ashley Rita Berson Curtis Beus Marcia Bingham Carol Boardman Barb Brightman Dave Burt Orville Campbell Paul Coover Sheri Crippen Kathy Cunningham Linda deBord Dan DiGuilio Linda Dillard Chuck Faires Ron Farquhar Anita Ferris Rod Fleck Tim Fletcher Dave Flodstrom Gail Frick Kay Godbey Don Grafstrom Jack Gray Annemarie Grey Bob Grey Carol Hagar Jim Haguewood Julie Haguewood Patty Hannah Bill Hannan Marny Hannan Doug Hoist Patty Hulbert Patrick Ibarra Martha Ireland Curt Jacobson Randy Johnson Jim Jones John Jones Kay Klepey Tom Lawell Dan Leinan Pat Mansfield Ed Marion Pat Marrin Mike McAleer Pat McCauley George McCormick Mike McInnes Joe Michalczik Maxine Michalczik Mike Millar Mary Morgan Judith Moms Ed Murphy Jerry Newlin Cindy O'Neill Bert Paul Bill Peach Traci Pederson Bart Phillips Jim Pickett Joyce Poole Nedra Reed Ginger Rich Jan Ridout Julie Triggs John Robben Karen Rogers Wayne Roedell Nick Schaefer Diane Schostak Kathy Schreiner Sondra Smith Tim Smith Jack Tatom Brook Taylor Bill Thomas Tracy Underdahl Becky Upton Esther Veltkamp Jack Waud Terry Weed Kim Zook EXECUTIVE SUMMARY During December of 1998, the Clallam County Economic Development Council (CCEDC) was awarded one of three grants by the State of Washington Department of Community Trade and Economic Development (CTED), to participate in a six -month pilot program. The purpose of the program was to focus on the needs of existing businesses in the county. This program, known as the Business Retention and Expansion (BR &E) program, has been successfully integrated as a significant part of economic development strategies in at least sixteen states. The cornerstone of this program was an in- person survey of private business owners or senior corporate executives. An important goal of this survey was to identify what is perceived to be the community's strengths and weaknesses as a place to do business. Some major objectives included identifying specific issues that were detrimental to the success of a particular enterprise, and developing a greater awareness in the community of the various economic and business assistance resources available. Because of the significant economic diversity found in each region of Clallam County, it was decided to implement this program at the community level. Advantages of this strategy over that of a single program run from the county seat were that it involved more people; allowed the personality /characteristics of each community to surface in the findings; and gave community ownership to this process, as well as established a network of volunteers in each community familiar with the entire program. A large majority of the 115 county businesses that participated in this survey said they felt positive about the economic future of Clallam County. Most classified growth as slight to moderate, but steady. Issues that were identified as playing important roles in future growth were: D The yet to be determined impacts to local business from the Endangered Species Act (ESA) listing of three salmon runs on the Peninsula. D Required improvements to expand fiber optics /state of the art telecommunications availability countywide. D The capacity and condition of the state highway infrastructure that serves the Peninsula. Concerns with local government and their relationship with private industry, in particular, government's ability to promote and support business development. Clallam County Economic Development Council BRE Survey 7/1/99 Page i The increasing economic impact of tourism and retirement promotion, and the declining role of manufacturing, natural resource based industries and agriculture. Heavy past dependence on natural resources, which are now unavailable or limited to the community (either in reality or artificially through governmental restrictions), is having a significant impact both financially and emotionally on the west end communities of the county. On the positive side, the strong pioneer spirit that built those communities is resurfacing in a new community pride. As one business put it, "Our community works together rather than relying on outside help Though wood products manufacturing remains an important component of the local economy, especially as it has traditionally provided a core of family wage jobs, businesses surveyed realize that major expansion of this sector is unlikely to happen. In its place, the businesses see more light industry similar to what has begun in Carlsborg, as a likely and acceptable alternative. Restrictions on private property, as well as the perception that there continues to be a steady decline in the tax base from private property becoming publicly owned, was addressed as a concern that may affect growth potential. Unlike so many other communities outside Clallam County, it is clear that people (businesses) choose to be here because they perceive we have a superb quality of life. Several notable businesses involved in this survey stated that they could relocate off the Peninsula and be financially more successful, but will not do so unless that quality of life deteriorates significantly. The local appeal of small town living is apparent in all the communities involved in this survey. People feel attached but are concerned as traditional sources of livelihood disappear and are replaced by less community identifiable occupations. This transition is recognized as an important but often difficult one; and one that requires understanding and cooperation from everyone, both in the public and private sector. The businesses that participated in this survey appreciated that their opinions were being sought and hope their voices will continue to be heard. The volunteers who participated in the interviews also felt that this effort was important for the businesses and the community. A sense of community cooperation and hope has accompanied this program as it has unfolded. It is hoped by those who participated that this momentum will not be lost. Clallam County Economic Development Council BRE Survey 7/1/99 Page ii Table of Contents Acknowledgments I Executive Summary I Table Of Figures IV Introduction 1 Background Method 2 Clallam County 5 Port Angeles 12 Sequim And Carlsborg 17 Forks 21 Clallam Bay And Sekiu 26 Summary And Recommendations 30 Clallam County Economic Development Council BRE Survey 7/1/99 Page iii Table of Figures Table 1 Public Service Evaluation for All Jurisdictions 11 Table 2 Workforce Evaluation (all Regions) 12 Table 3 Public Services Evaluation (Port Angeles) 16 Table 4 Workforce Evaluation (Port Angeles) 17 Table 5 Public Services Evaluation (Sequim) 20 Table 6 Workforce Evaluation (Sequim) 21 Table 7 Public Services Evaluation (Forks) 25 Table 8 Workforce Evaluation (Forks) 26 Table 9 Public Services Evaluation (Clallam Bay/ Sekiu) 29 Table 10 Workforce Evaluation (Clallam Bay/ Sekiu) 30 Clallam County Economic Development Council BRE Survey 7/1/99 Page iv INTRODUCTION This Clallam County Business Retention and Expansion Survey Report reflects a five month effort and more than a thousand hours of volunteer time by Clallam County businesses owners, corporate executives, community leaders, public sector officials and employees, and concerned citizens. The purpose of this report is to provide a representative countywide sample from private businesses to determine what they consider the strengths and weaknesses of doing business in Clallam County. The cooperation received for this project throughout the county was exceptional. Over one hundred volunteers county -wide contributed a minimum of five hours each, (and in some case up to four times that amount), participating in this effort. Without their commitment and time, this project would not have been possible. Over one hundred and fifteen business owners or senior corporate executives in the county also donated anywhere from two to five hours each, helping us to understand their business and sharing their thoughts on our community as a place to live and work. The intent of this report is to provide information. It is not meant to provide solutions to problems identified, but rather to supply a timely assessment that transcends the business community as to the thoughts and opinions of those who are in business in Clallam County. The information contained in this report is meant to be used by others to improve our business environment. Confidentiality to the businesses participating in this program has been guaranteed. Only with their approval are specific issues or comments shared with others. Because of the desire of some of the businesses to remain anonymous, a listing of participants has not been published. In addition, to provide the level of comfort to the individuals being interviewed and allowing frank discussion to take place, the skip it rule was applied throughout the interview process. This rule required the interviewer to ask all the questions on the survey form, but gave the person(s) being interviewed the right to skip, or not answer, any question or questions of their choosing. Essential to the success of this program, this rule in some cases may produce survey data that is incomplete or possibly misleading. Since the goal of this survey was to identify trends and patterns, individual comments not related to issues presented elsewhere may not appear in this report. Regardless, all input received is considered important and helped to shape a better understanding of our business climate. Individual concerns, only with the prior approval of Clallam County Economic Development Council BRE Survey 7/1/99 Page 1 the person sharing that information, will be forwarded to the appropriate agency or individual for information and /or action. This report contains a county summary and four community summaries. The community, or region, breakdown includes Sequim /Carlsborg (Region 1), Port Angeles (Region 2), Forks (Region 3) and Clallam Bay /Sekiu (Region 4). Data tables are provided for the county and community summaries. Percentage points are rounded to the nearest whole number. In instances where several answers were provided to a single multiple choice question, the lower value was used. In cases where the answer required a description rather than a value and multiple answers were chosen, the one used for computation was the one most closely aligned with other answers given during the interview. Tables are used throughout this report to rate certain aspects of community life. The rating system is 1 to 5, with one being the lowest level of satisfaction. In this report when a rated area is referred to as "below average" it means that the county /community score was less than three. BACKGROUND METHOD During November of last year, the Washington State Department of Community, Trade and Economic Development (CTED), solicited grant applications for a limited pilot program designed to assist communities in economic development through the enhancement of existing businesses. This program, the Business Retention and Expansion (BR &E) Program, has been in existence for over a decade and is an established component for community economic development strategies in more than sixteen states. Limited state funding for this program restricted initial participation to three grants. In December, it was announced that in addition to Clallam, Asotin and Whitman counties had been selected to participate. The cornerstone of the BR &E program is a community volunteer driven interview survey of existing businesses. In- person interviews with business owners or senior corporate executives rather than a mail survey has in the past demonstrated the greatest success. It also presented several significant challenges the recruitment and training of a sufficient number of volunteer interview team members, and the ability to generate willingness by the business community to participate. Clallam County Economic Development Council BRE Survey 7/1/99 Page 2 To maximize this opportunity, the strategy adopted by the Clallam County Economic Development Council was to regionalize this effort within the county. Though less expedient than running a single program out of Port Angeles, the benefits of having more citizens participate in the entire process, plus the advantages of not homogenizing important local community personality /characteristics made this an easy choice. Anticipated bonuses to this preferred method included a greater opportunity for community ownership of this program; as well as the establishment of effective volunteer networks in each community, familiar with the entire program. The desire to see this program grow at the community level, supported by the CCEDC, after the state grant period was a significant factor in the decision to regionalize this effort. It was with this in mind that the CCEDC turned to the local communities and asked for their participation and partnership. It was decided that only private businesses would be included in this phase of the survey and that a broad business cross section participation was desired. During January of this year, community members in Sequim, Port Angeles and Forks got together separately, with support provided by the CCEDC, and reviewed the proposed Business Retention and Expansion Program model, state grant prerequisites and suggested timelines. The CCEDC decision to establish this program in each community, providing the nucleus for a long term community oriented business retention and expansion effort, was validated at these meetings by the enthusiasm of those who participated. The initial tasks of these groups were to identify local companies to be visited and recruit survey volunteers. Businesses selected and approached for participation in this initial effort were chosen for a variety of reasons. Some of the criteria included: economic impact in the community; number of employees; longevity; accessibility; perceived community leadership and growth potential; type of industry and overall significance to the community. In all cases, the number of businesses identified far exceeded the volunteer recruitment expectations, given the program's short timelines, and had to be limited. In Sequim this effort was championed by Esther Veltkemp, Executive Director of the Sequim Dungeness Valley Chamber of Commerce, and Jack Tatom; and resided in the Sequim Dungeness Valley Chamber of Commerce's Sequim Development Committee, chaired by Bob Grey. In Forks, the City of Forks Economic Development Director, Kathy Cunningham, lead the effort with the support and assistance of the City of Forks Economic Development Steering Committee and the Forks Chamber of Commerce, Diane Schostak Executive Director. The Port Angeles effort was lead by Tim Smith, City of Port Angeles Economic Development Director, and Bill Ashley, BRE Project Manager. The Clallam Clallam County Economic Development Council BRE Survey 7/1/99 Page 3 Bay /Sekiu program was supported by CCEDC board member Linda Dillard and community member Pat Marrin. Without the leadership and energy provided by these individuals and the respective groups, this program could not have succeeded. The training of volunteers was conducted in Sequim, Port Angeles and Forks by community members, and Ms. Ginger Rich of the Washington State Department of Community, Trade and Economic Development. Though the original target of the program was to interview 50 private sector businesses, it became apparent early on that the interview pool could be expanded, providing a stronger sampling and involving more people in the process. Countywide, 119 businesses were asked to participate. Of those asked, 115 did participate. Each community felt confident that even more businesses could have been recruited to participate, but time constraints and volunteer commitment concerns forced limiting the number. The interview period, which was originally established for March, extended well into April as more interviews were added. This tremendous willingness to participate by the business community was a plus for both the program and community groups involved. Clallam County Economic Development Council BRE Survey 7/1/99 Page 4 CLALLAM COUNTY The following summary is the combined results of the four survey regions of Clallam County, representing the input of 115 businesses. Comments qualifying for inclusion to this section reflect the expressed opinions of businesses in at least two or more of the surveyed regions. Concerns or responses that represent trends or patterns within a specific survey region will be addressed later in this report under that region's summary. I. PROFILE OF PARTICIPATING BUSINESSES Eight of the business owners /executives interviewed account for twenty (17 of the businesses included in this survey. Five of the multiple business owners /executives are in Port Angeles, two in Clallam Bay /Sekiu and one in Forks. One business owner has five established businesses and another has three. The other six interviewed account for two apiece. Several other multiple businesses owners participated in the survey but only under one business. Two of the businesses included in the survey are out of county operations but their corporate headquarters are located in Clallam County. Ninety -eight (85 of the businesses interviewed are privately owned. Ten (9 are publicly held (stock) companies. Four (3 are foreign owned and three (2 are Not For Profit chartered organizations. Forty (35 of the businesses are classified as retail. Thirty -eight (33 are service sector businesses. Twenty -two (19 are manufacturers. Seven (6 are in construction. Four (3 are agriculture. Three (2 are business sector classified as financial, and one is in wholesale trades. When asked if their business was emerging, growing, maturing or declining, six (5 businesses said emerging; sixty -six (57 said growing; thirty -two (28 said maturing; eight (7 said declining and three (3 did not reply. When asked if merger, acquisition or divestiture activity was increasing, stable or decreasing in their industry, forty -three (37 of the businesses said increasing; thirty -seven (32 said it was stable; two (2 said it was decreasing and two (2 didn't know. Thirty -three (29 businesses said they anticipated investing in expansion, facility upgrades or modernization. The total dollar amount of investment is estimated to be $17,368,000, and potential new jobs to be created are 232. Clallam County Economic Development Council BRE Survey 7/1/99 Page 5 When asked about their employment needs, fifty -two (45 of the surveyed businesses said they were increasing; fifty -nine (52 businesses said theirs' were stable, and four (3 said theirs' were decreasing. II. INFRASTRUCTURE SUPPORT ISSUES COMMENTS Fifty -eight (50 of the businesses reported they expected an increased need for telecommunications support in the near future. Twenty -nine (25 businesses expected an increased demand for electricity. Eighteen (16 businesses expected greater water consumption, and fifteen (13 anticipate more demand for sewer services. Fifty -six (48 businesses reported that new technology in their industry was changing their business. All but one business that commented on technology indicated it was an improvement. A large number of these businesses cited the advantages available to them through use of the Internet. Thirty -four (30 of the businesses interviewed stated they have had past problems with building codes. Twenty -nine (25 of the businesses have had difficulties with wetlands designations. Zoning problems have been experienced by twenty -five (22 of the businesses surveyed. Twenty -two (19 businesses have had problems with fire codes, and twelve (10 have had water rights issues. 1 Businesses from three of the four regions surveyed said barging of raw materials and finished products out of the Port of Port Angeles would benefit their business by reducing their transportation costs. Businesses in two regions discussed the diminishing supply of local sand and gravel available for mining. A suggestion was for the county to identify mineral zones and protect those zones from encroachment and negative public reaction /complaint. Though air transportation rated above average county -wide (Table 1), interviews in all regions showed a dissatisfaction with the cost to fly between Port Angeles and Seattle, as well as the schedule frequency and reliability. Several businesses interviewed need to 'Over 40% of the businesses responding to this question have had past difficulties in more than one category. The data summary reflects multiple category input. Clallam County Economic Development Council BRE Survey 7/1/99 Page 6 have reliable air transportation out of the area to provide customer service to regional /national clients. The need for natural gas on the Peninsula was commented on in all regions surveyed. The advantages of rail transportation was an item discussed by businesses in several of the regions. A railway system would allow cost effective movement of materials and products on and off the Peninsula and increased tourism. The survey questions that addressed public administration were focused on state, county and municipal government. Other public agencies were not specifically identified for the businesses' input during the interviews. Regardless, the Port of Port Angeles was criticized in two of the four regions for not being responsive to the community. Several businesses thought the Port was at times heavy handed, and did not work for the benefit of the community. Comments on the state highway system were received from all the regions surveyed. Maintenance of the highways was an issue addressed many times. Several businesses commented that delays caused by scheduled maintenance were of particular concern. Some respondents proposed that scheduled maintenance take place during other than peak periods, preferably at night. The most frequent comment was the capacity of the highways. Though the Sequim by -pass is seen as providing congestion relief for Region 1, many felt two lanes are insufficient for Highway 101. Similar concerns were raised about Highway 112. The highway system was rated the most harshly by the businesses where transportation of goods and materials was a significant part of their operating costs. Others felt local tourism suffered because of the state highway deficiencies. Manufacturers in two regions discussed the cost to business when power outages occur. One business said that they estimate losing a week of production each year from power outages. The cause of this disruption identified the most often was downed power lines. Businesses in all the regions expressed concern for what they perceived as the disproportional influence of a "no growth" attitude in county government. In particular, Regions 3 and 4 expressed concerns that this influence, which they felt had the strongest public support in the other two regions, was spilling over to their areas to the detriment of community growth and prosperity. Clallam County Economic Development Council BRE Survey 7/1/99 Page 7 All the regions surveyed voiced their concern for what they perceived as a shortage of land available for development. In Region 1, the Carlsborg moratorium was criticized as detrimental to growth. The lack of land available for agriculture was also mentioned. Region 3 businesses reported that the disproportionate amount of public land limited development and economic growth. All regions addressed concerns on the impact of the ESA listings, and increasing environmental restrictions, as the major cause for the shrinkage of land available for development. The improvement in fiber optics telecommunications availability was the most pressing utility need addressed countywide. The desire for greater access, increased reliability and speed of communications was expressed repeatedly in all regions surveyed. The need for improvement in telecommunications capabilities in the county was most often linked to business expansion plans. A related concern expressed was for the reliability of cellular telephone communications. Businesses throughout the survey area felt under appreciated by local government. Some respondents in several of the regions were critical of what they perceived as unequal treatment by public entities favoring new businesses as compared to existing businesses. A revision of the State's B 0 tax law was recommended by several businesses in two regions. They proposed that the tax be tied to performance (net) rather than gross sales. Dissatisfaction with county government was expressed in all the regions participating in this survey. The Department of Community Development was criticized for being unresponsive and uncaring towards business and tended to be challenging rather than cooperative. Politics was also singled out as a determent for progress. Several of the businesses stated the belief that a change to a council- manager type of county government would work better. Retailers in three regions surveyed discussed the unfair pricing practice of pharmaceutical companies that discriminate against independent retailers. The price breaks given to non profit and mail order companies puts local retailers at a disadvantage. Several of these retailers discussed the extraordinary paperwork burden required by governmental agencies for them to provide health care products and services for customers on government insurance plans. The change in the federally established minimum wage, and scheduled future changes, concerned businesses in two regions. Clallam County Economic Development Council BRE Survey 7/1/99 Page 8 Businesses in all regions surveyed talked about the costs of goods, materials and services being higher because of the remoteness of the Peninsula and the distances involved. III. COMMUNITY ISSUES COMMENTS Fifty -nine (51%) businesses expressed concerns on the impact of the ESA threatened listing of three salmon runs, and potentially increased sensitive area /environmental regulations that could accompany the listings. The concerns most expressed in the eastern portion of the county were the affect on water availability on agriculture practices, development and retail spending. The central portion of the county's businesses had concerns on the affect on development, forest management and timber supply, recreational activities, and the local economy (money supply). The western portion of the county expressed concerns on timber harvesting, timber supply, fishing tourism, and use /development of private land. The availability of medical doctors willing to accept new patients was an issue in Regions 1 through 3. Employers saw this shortage as not only a handicap for their employees, but also a serious disadvantage in recruiting skilled position labor from outside the area. The loss of family wage jobs in the county was a concern in all regions. Retailers in particular voiced this opinion. The survey area includes five public school districts and several private schools. Four of the public school districts were addressed during the survey. 2 All regions expressed pride for their schools, but survey satisfaction was highest in Region 1, followed in order by Region 2, Region 3 and Region 4. Businesses in several regions said schools need to do a better job in preparing the students to enter the work force. In particular, respondents said that not enough emphasis was given to vocational trades and customer service skills. The Port Angeles Skills Center was singled out for praise, as was Peninsula College. The perceived poor work ethic among younger employees was discussed in all four regions. 2 The Cresent School District was not mentioned by respondents. Clallam County Economic Development Council BRE Survey 7/1/99 Page 9 A perceived attitude by some businesses in each region is the community's reluctance to accept change. Several businesses said their community was bound by tradition, which may be good in some things but not always progressive. Retailers and service providers in all four regions said customer loyalty to local businesses was community strength. Some did comment that out of town shopping by locals negatively affected their businesses. The most received comment throughout the entire survey was the high level of satisfaction Clallam County residents had for their quality of life. Recreational opportunities were also discussed as a major part of that quality of life, though some respondents in several regions were critical of the lack of non outdoor recreational options, especially for young people. Sixty -nine (60 of the businesses surveyed said they believed business and economic assistance was readily available in Clallam County. Seventeen (15 said they didn't think assistance was available, and twenty -nine (25 said they didn't know. Several of those who said they knew assistance was available were unsure that it really was in the outlying communities and to small emerging businesses. The lack of commercial lending support was criticized by several businesses in two of the county survey regions. Eighty -six (75 of the businesses believed that the economic future of Clallam County was positive. This opinion was strongest in the eastern half of the county. Fifteen (13 businesses said the economy would stay about the same or weaken further. Ten (9 businesses said they didn't know what the future held, and four (3 didn't respond. The majority of those who thought it was positive were cautious in their appraisal; usually commenting that they thought it would be a slow but steady growth. Some ventured to say how that growth would come about mainly through tourism, retirement promotion, and a diversification of light industry. No one predicted heavy industry or a rebound of the traditional local natural based resources as being the dominating influence for our future growth. Clallam County Economic Development Council BRE Survey 7/1/99 Page 10 Table 1 Public Service Evaluation for All Jurisdictions P ubli c ervlces Evaluation for all Junsdlctions Tlow, a i h II 1 II 2 II 3 II 4 II 5 II NA II Ave I i'Olice 2 11 12 39 45 5 4 05 2% 10% 11% 34% 39% 4% hire 1 3 9 36 60 5 4 39 1% 3% 8% 32% 53% 4% rarameaic 6 3 40 61 4 442 5% 3% 35% 54% 4% i ratriC 9 16 27 30 15 17 3 27 8% 14% 24% 26% 13% 15% transportation 8 4 15 39 33 15 3 86 7% 4% 13% 34% 29% 13% Sewage 4 5 10 32 43 20 4.12 4% 4% 9% 28% 38% 18% eater 1 4 10 36 55 8 4 32 1% 4% 9% 32% 48% 7% SCfOOis 3 4 21 41 37 8 3 99 3% 4% 18% 36% 32% 7% tax 16 12 34 28 13 11 3 10 14% 11% 30% 25% 11% 10% Harming 14 27 34 22 7 10 2 82 12% 24% 30% 19% 6% 9% Keguiatory tnrorcement 14 14 37 24 12 13 3 06 12% 12% 32% 21% 11% 11% city services 2 4 17 38 25 28 3 93 2% 4% 15% 33% 22% 25% county services 3 19 30 30 14 18 3.34 3% 17% 26% 26% 12% 16% Healtn care 2 5 20 45 34 2 3 98 2% 4% 18% 39% 30% 2% wino care 1 10 27 30 7 33 3 43 1% 9% 24% 26% 6% 29% Recreational opportunity 6 6 8 20 70 0 4 29 5% 5% 7% 18% 61% 0% wuailty or Lire 0 0 3 21 86 0 4 75 0% 0% 3% 18% 75% 0% How Infrastructure 5 16 45 33 11 1 3 26 4% 14% 39% 29% 10% 1% Highway Infrastructure 12 22 36 30 10 0 3 04 11% 19% 32% 26% 9% 0% Air i ransportation 7 10 26 38 15 15 I 3 46 6% 9% 23% 33% 13% 13% Building Permits/ Regulatory Process 10 21 30 29 12 7 3.12 9% 18% 26% 25% 11% 6% Total number of executives responding: 114 Clallam County Economic Development Council BRE Survey 7/1/99 Page 11 Table 2 Workforce Evaluation (all Regions) Work Force Evaluation (all Regions) pow, a- inn I II 2 II 3 II 4 II 5 II NA Ave I 'Availability 10 18 33 31 19 3 3 28 9% 16% 29% 27% 17% 3% Quality 9 16 36 35 15 3 3 28 8% 14% 32% 31% 13% 3% Stability 5 14 30 40 21 4 353 4% 12% 26% 35% 18% 4% 0 1 21 36 18 38 3 93 Productivity 0% 1% 18% 32% 16% 33% Total number of executives responding: 114 PORT ANGELES I. PROFILE OF PARTICIPATING BUSINESSES A total of 57 businesses were included in this survey. Forty -five (79 are privately owned. Seven (14 are public held (stock) companies. Three companies (5 are foreign owned, and two (4 are Not For Profit organizations. Nineteen (33 of the businesses are classified as service oriented. Sixteen (28 are retail. Thirteen (23 are manufacturers. Five (9 are in construction. Three (5 are classified as financial and one (2 is in wholesale trade. Three (5 of the companies described themselves as emerging. Thirty -nine (68 said their companies were growing. Thirteen (23 identified their companies as maturing, while two (4 said they were declining. When asked about merger, acquisition or divestiture activity in their profession, thirty (53 businesses said it was increasing. Twenty -four (42 businesses reported it to be stable. Twenty -seven (47 of the companies anticipate a need to increase employment. Thirty (53 companies said their employment was stable, and none of the companies surveyed said they anticipated decreasing their employment in the near future. Eighteen (32 of the companies stated they anticipated modernizing or expanding in the future, requiring capital investment and providing possible employment opportunities. The total dollar investment estimated is $12,130,000, and potentially 130 new jobs created. Clallam County Economic Development Council BRE Survey 7/1/99 Page 12 The difficulty of local recruitment of high skilled positions throughout all business sectors surfaced repeatedly. Out of area recruitment for these positions was hampered by a variety of factors, such as perceived remoteness, availability of doctors who were accepting new patients, lack of availability of specialized medical care, low wages and the lack of job opportunities for spouses. The quality of the work force was rated highest of the four county regions participating in this survey. (Table 4) The businesses were asked about the company's investment in employee training. Thirty -eight (67 businesses said that the company's investment was increasing. Fifteen (26 said that company investment in training was stable. One (2 said company investment was decreasing, and five (9 did not respond. II. INFRASTRUCTURE SUPPORT ISSUES COMMENTS Thirty -one (54 of the companies said they anticipated an increased need for telecommunications support. Nine (16 companies felt their use of electricity would be increasing. Eight (14 expected to have a greater demand for sewer services. Seven (12 companies believed water consumption would be increasing. Thirty -two (56 companies indicated recent technology has affected their industry. All but one business said the change was positive or provided additional capabilities /opportunities. Comments on local air transportation showed a concern for the cost of flights between Port Angeles and Seattle. Negative comments were also received about the limited flight schedule and schedule reliability. Building permits/regulatory process was rated the lowest of the four regions surveyed. Comments showed greater satisfaction with the City of Port Angeles as compared to Clallam County in this area. (Table 3) Sixteen (28 companies reported having past problems with building codes and fifteen (26 with fire codes. Thirteen (23 businesses have had problems with zoning, while sixteen (28 have had issues with wetland designations. Seven (12 businesses have experienced issues dealing with water rights. Highway infrastructure was rated below average. (Table 3) Though not specifically identified in the survey form as a question, seven (12 businesses volunteered a negative opinion on the effectiveness of the Port of Port Angeles Clallam County Economic Development Council BRE Survey 7/1/99 Page 13 as a governing body. Two additional businesses mentioned dissatisfaction with the Port of Port Angeles but declined to elaborate for the interviews. Public transportation, traffic control and county services were rated the highest of the four county regions surveyed. (Table 3) Planning and regulatory enforcement were rated below average. (Table 3) Distance from suppliers and markets, combined with limited transport options was a negative cost factor for many of the retailers and manufacturers surveyed. III. COMMUNITY ISSUES COMMENTS Twenty -six (46 companies stated concerns for their business future, because of the ESA threatened listing of three salmon runs, and the environmental /sensitive area restrictions that may accompany those listings. All the construction business sector companies voiced these concerns, as well as a significant proportion of the interviewed retailers. Several of this region's major manufacturers expressed similar concerns. It is estimated that these companies employ more than 60% of the labor force involved in this region's survey. Respondents rated recreational opportunities highest among the four county regions participating in this survey. Quality of life and air transportation were rated the second highest of the four regions surveyed. (Table 3) As was the case in the other county regions surveyed, the businesses reported that the closeness and small size of the community helped professional networking, and established personal relationships which improved private public sector understanding and cooperation. The down side was often cited as being the reduced local market base for both provided and received goods and services. Local support of businesses by the community was cited as a community strength though there was some criticism of out of town shopping by several retailers. Though businesses' comments were supportive of schools in the Port Angeles School District, some questioned if graduating seniors possessed the skills to enter the local work force. The lack of sufficient vocational programs, and emphasis on those programs, concerned some. Retailers in particular talked about new employees not understanding the basics of customer service. The Port Angeles Skills Center and Peninsula College received favorable comments. Clallam County Economic Development Council BRE Survey 7/1/99 Page 14 Thirty -eight (66 businesses said they believed business and economic assistance was readily available in Clallam County. Six (11%) businesses did not believe assistance was available. Seven (12 answered they didn't know, and six (11%) did not answer the question. When asked what they thought the future held for the economy of Clallam County, forty -six (81%) businesses believed the future was positive. Four (7 responded they thought the economy would continue to decline. Four (7 said they didn't know and three (5 failed to respond. Clallam County Economic Development Council BRE Survey 7/1/99 Page 15 Table 3 Public Service Evaluation (Port Angeles) p-low, 5 -high Police Fire Paramedic Traffic Transportation Sewage Water Schools Tax Planning Regulatory Enforcement City Services County Services Health Care Child Care Recreational Opportunity Quality of Life (Road Infrastructure (Highway Infrastructure (Air Transportation (Building Permits/ Regulatory Process Page 16 Public Services Evaluation for Port Angeles II Total number of executives responding: 56 Clallam County Economic Development Council BRE Survey 7/1/99 1 II 2 II 3 II 4 II 5 II NA II Ave I 1 2 24 26 3 4 42 0% 2% 4% 43% 46% 5% 5 19 29 3 4 45 0% 0% 9% 34% 52% 5% 2 21 30 3 4 49 0% 4% 0% 38% 54% 5% 7 17 18 8 6 354 0% 13% 30% 32% 14% 11% 1 1 7 18 19 10 4 15 2% 2% 13% 32% 34% 18% 2 3 6 23 16 6 3 96 4% 5% 11% 41% 29% 11% 2 4 24 21 5 4 25 0% 4% 7% 43% 38% 9% 1 8 26 18 3 4 15 0% 2% 14% 46% 32% 5% 4 8 18 17 4 5 3 18 7% 14% 32% 30% 7% 9% 5 11 19 13 2 6 2 92 9% 20% 34% 23% 4% 11% 8 6 21 11 4 6 294 14% 11% 38% 20% 7% 11% 3 10 23 12 8 392 0% 5% 18% 41% 21% 14% 7 13 18 9 9 3 62 0% 13% 23% 32% 16% 16% 1 2 9 28 12 0 3 92 2% 4% 17% 54% 23% 0% O 3 13 23 2 13 3 59 0% 6% 24% 43% 4% 24% O 4 1 10 39 0 456 0% 7% 2% 19% 72% 0% O 0 1 10 43 0 4 78 0% 0% 2% 19% 80% 0% 4 9 21 17 4 0 3 15 7% 16% 38% 31% 7% 0% 7 10 26 38 15 15 3 46 6% 9% 23% 34% 14% 14% 1 4 11 26 11 2 3 79 2% 7% 20% 47% 20% 4% 8 14 16 10 2 5 2 68 15% 25% 29% 18% 4% 9% Table 4 Workforce Evaluation (Port Angeles) VOIR oorce evaluation for Port Angeles 11 -low, 5 -high 1 p 2 II 3 II 4 II 5 II NA p Ave I ..vauaomry 3 8 20 15 7 3 I 3 28 5% 14% 36% 27% 13% 5% Quality 1 6 19 19 8 3 3 51 2% 11% 34% 34% 14% 5% o*aolhty 3 13 28 9 3 3 81 0% 5% 23% 50% 16% 5% 1 11 25 8 11 I 3 89 Productivity 0% 2% 20% 45% 14% 20% Total number of executives responding: 56 SEQUIM AND CARLSBORG I. PROFILE OF PARTICIPATING BUSINESSES Twenty -two businesses were included in this survey. Eighteen (82 are privately owned, three (14 are public held (stock) companies and 1 (4 is a Not For Profit foundation. All the interviews were conducted with the business owners (private businesses), or the senior corporate executive (publicly held and non profit businesses) assigned to that location. Nine (41%) of the businesses surveyed were classified as retail. Four (18 businesses were in the service sector. Four (18 were agriculture, four (18 were manufacturers, and one was construction. When asked if they felt if their business was "emerging", rowin y "growing", "maturing" or "declining one (4 said emerging; thirteen (59 said growing; and eight (36 said maturing. No businesses were identified as "declining Seven (32 businesses indicated they were considering modernization and /or expansion. The combined dollar investment involved was projected at $2,820,000, and potential new jobs created from this activity were estimated at 69. Seventeen (77 businesses said they anticipated increasing the number of employees in the future. (Four of those businesses may be increasing employment Clallam County Economic Development Council BRE Survey 7/1/99 Page 17 because of seasonal demands rather than expansion.) Five (23 businesses said their employment needs were stable. When asked if merger, acquisition or divestiture activity was increasing, stable or decreasing in their industry, two (9 businesses said it was increasing and five (23 businesses responded it was stable. Eleven (50 of the businesses said their investment in employee training was increasing while ten (46 noted it was stable. Several agriculture sector businesses discussed their perception of an eroding support base for their industry and encroachment by development. Though 'three of these businesses discussed plans for facilities improvements, the increasing cost of land, labor and water availability, and community attitude toward agriculture were all concerns Eleven (50 businesses said they were concerned about the potential impacts from the Endangered Species Act threatened listing of three salmon runs. Concerns about possible restrictions on water use and availability were expressed more often during these interviews than they were in the other three county regions participating in this survey combined. Eight (36 businesses referred to the impact of the growing retirement community on the local economy. Work force availability and stability were rated highest of the four county regions (Sequim /Carlsborg, Port Angeles, Forks, Clallam Bay /Sekiu) participating in this survey. (Table 6) Fifteen (68 businesses indicated that their need for telecommunications support was increasing. Seven (32 said they anticipated a greater need for water. Six (27 thought they may require more electricity in the future and three (14 will have a greater demand for sewer services. Ten (45 businesses indicated that recent technology innovations have had a positive impact on their business. The satisfaction level of traffic control, air transportation, property taxes and governmental planning were rated below average by those polled. (Table 5) Planning dissatisfaction was greater at the County level than at the City of Sequim level. The building moratorium in Carlsborg is an issue with several of those polled. Clallam County Economic Development Council BRE Survey 7/1/99 Page 18 Eight (36 businesses said they have had problems with building codes. Fire codes were cited by 6 (27 of the businesses as having been a problem. Nine (41%) of the businesses have had difficulties with zoning issues. Water rights issues have been a problem for four (18 businesses, as has wetland regulations. Satisfaction with childcare, road infrastructure and quality of life were rated highest of the four county regions participating in this survey. (Table 5) The lack of medical doctors in the area accepting new patients was addressed several times as a negative for community growth. The need for a destination resort and public golf course were discussed as ways to increase local tourism. Eleven (50 businesses said they believed economic and businesses assistance was readily available in the County. Five (23 did not and six (27 either didn't know or didn't respond to the question. Thirteen (59 businesses were optimistic about the future of Clallam County's economy. Seven (32 were not and two (9 did not know. Clallam County Economic Development Council BRE Survey 7/1/99 Page 19 Table 5 Public Services Evaluation (Sequim) eublic services tvaluation Tor sequim t iow, b -filgn 11 1 p 2 p 3 II 4 ll 5 II NA Ave I Police 0 0 3 8 10 1 4 33 0% 0% 14% 36% 45% 5% Fire 1 0 0 9 11 1 4 38 5% 0% 0% 41% 50% 5% Paramedic 0 0 0 7 14 1 4 67 0% 0% 0% 32% 64% 5% i rattic 4 4 5 4 1 4 2 67 1 18% 18% 23% 18% 5% 18% 1 iransportation 2 1 5 9 2 3 3 42 9% 5% 23% 41% 9% 14% Sewage 1 1 1 5 6 8 400 5% 5% 5% 23% 27% 36% mater 1 2 3 5 10 1 400 5% 9% 14% 23% 45% 5% Jcnools 5 7 8 2 415 0% 0% 23% 32% 36% 9% i az 4 3 6 4 2 1 284 20% 15% 30% 20% 10% 5% Planning 2 9 9 1 I 2 55 9% 41% 41% 5% 5% 0% Regulatory tntorcement 3 3 6 4 4 2 3 15 14% 14% 27% 18% 18% 9% vity Services 1 1 5 6 3 2 3 56 6% 6% 28% 33% 17% 11% (county Services 1 2 7 4 3 5 3 35 5% 9% 32% 18% 14% 23% Health Care 0 2 3 8 8 0 4 05 0% 10% 14% 38% 38% 0% l:nua care 0 2 5 4 2 8 3 46 0% 10% 24% 19% 10% 38% Recreational Opportunity 1 0 3 5 12 0 4 29 5% 0% 14% 24% 57% 0% Quality of um 0 0 0 3 18 0 4 86 0% 0% 0% 14% 86% 0% Komi Infrastructure 0 1 11 7 1 1 3 0% 5% 52% 33% 5% 5% Highway Intrastructure 0 4 4 10 3 0 3 57 0% 19% 19% 48% 14% 0% Air l ransportation 2 4 4 5 1 5 2 94 10% 19% 19% 24% 5% 24% 'building Permits, Regulatory Process 2 3 5 6 3 2 3 26 10% 14% 24% 29% 14% 10% Total number of executives responding: 22 Clallam County Economic Development Council BRE Survey 7/1/99 Page 20 Table 6 Workforce Evaluation (Sequim) vvorK rorce tvaivation for sequim 1-low, 5 -hign 1 II 2 II 3 II 4 II 5 II NA I Ave I v vanaowty 1 5 2 10 4 350 5% 23% 9% 45% 18% 0% Quality 1 3 5 9 4 355 5% 14% 23% 41% 18% 0% atabwty 3 6 8 5 3 68 0% 14% 27% 36% 23% 0% rroauctIvIty 3 7 4 8 4 07 0% 0% 14% 32% 18% 36% Total number of executives responding: 22 FORKS I. PROFILE OF PARTICIPATING BUSINESSES Twenty -five businesses were surveyed. Twenty -four of the businesses are privately owned and one is foreign owned. Ten (40%) of the businesses are classified as retail, ten (40 are service sector and five (20%) are manufacturing. In all the businesses surveyed, the owner or the senior corporate executive participated in the interview. When asked if they would classify their business as emerging, growing, maturing or declining, one (4 said emerging; eight (32%) said growing; ten (40%) said maturing and three (12%) said declining. One business chose not to answer this question. Asked if merger, acquisition or divestiture activity is increasing, stable or decreasing in their profession, seven (43%) businesses said increasing, four (21%) said stable and one (4 said decreasing. Seven (28%) businesses reported plans for future facility upgrade or expansion. Total investment by these seven businesses is estimated at $2,358,000, creating up to 30 new jobs. Eight (32%) of the businesses said their projected employment needs were increasing. Sixteen (64 of the businesses said their projected employment was stable, and one (4%) said their needs were decreasing. Clallam County Economic Development Council BRE Survey 7/1/99 Page 21 The productivity of the work force was rated higher than two of the other county regions included in this survey, but the stability of the work force was rated the lowest of the four regions. (Table 8) Twenty -two (88 of the businesses reported they provide training for their employees. Eight (32 businesses reported increasing company training for their employees. Fourteen (56 businesses said their company training was stable. II. INFRASTRUCTURE SUPPORT ISSUES COMMENTS Ten (40 of the businesses said that new technology has affected their industry. Nine (36 of the businesses said they expected their telecommunications needs to increase. Seven (28 said their need for electricity would be increasing. The use of water and sewer services is expected to increase for three (12 businesses as well. Satisfaction with the services provided by the City of Forks was rated the highest of the three incorporated municipalities included in this survey. (Table 7) The discrepancy between satisfaction of city services provided and those of the County was the most significant of the three municipal areas represented in this survey. (Table 7) Several businesses recommended that the County staff a part time West End annex to provide better and timelier service to West End residents. Survey participants rated health care higher than the other three county regions surveyed. (Table 7) Building permits /regulatory process satisfaction was rated the highest of the county regions surveyed. Comments from those surveyed showed a significant approval of this service at the city level, but a less enthusiastic response towards county support. (Table 7) Seven (43 businesses indicated having had problems with building codes. Three (14 said they have had problems with zoning issues. Four (21%) have encountered problems with designated wetlands. One (4 business has had an issue with water rights and another business (4 has had problems with fire codes. Concerns were expressed that the no growth attitude, which is perceived to be strongest in the central and eastern parts of the county, is unfairly influencing county decision making that directly impacts this region. Clallam County Economic Development Council BRE Survey 7/1/99 Page 22 The difficulties in obtaining commercial loans and group health insurance in this area was mentioned several times as significant drawbacks to local businesses and potential growth /expansion. Several businesses stated the need for more traffic lights on Highway 101 (within the city limits), during the high volume summer season. The lack of city sidewalks, especially on Highway 101 and customer friendly parking were addressed. Though overall satisfaction with the highway infrastructure was good, several businesses commented on the lack of highway maintenance in several areas that presented safety issues. High freight costs because of the distance from suppliers, and in some cases customers, makes goods and services more expensive. Limited remaining capacity for waste treatment on the city system may stall city growth. III. COMMUNITY ISSUES CONCERNS Fourteen (56 of the businesses identified anticipated environmental restrictions associated with the ESA listing of three salmon runs as having a negative impact on their business. Four (16 of the business indicated that the disproportionate amount of public land in their area had a negative impact on both community growth and future prosperity. The restricted use of and access to these public lands further hurt local recreational /tourism opportunities that are becoming increasingly more important to the community. Though local schools rated well, several businesses expressed concerns on the preparedness of high school graduates to enter the business- community. Insufficient vocational skills are emphasized, and the lack of basic customer service training requires businesses to offer remedial skills training to new employees. Those interviewed rated quality of life very high, as well as outdoor recreational opportunities. (Table 7) Comments reflect dissatisfaction for local recreational options that are not outdoors oriented especially those for youth. Clallam County Economic Development Council BRE Survey 7/1/99 Page 23 Fourteen (56 of the businesses surveyed said they believe economic and business assistance is available in Clallam County. Two (8 disagreed and nine (36 were not sure or didn't answer the question. Seventeen (68 of those interviewed were optimistic, in varying degrees, about the future of Clallam County's economy. Three (12 were not. Four (16 didn't know and one (4 did not respond to the question. Several of those who voiced optimism did so on the condition that a greater amount of harvestable timber on public land would become available in the future. Clallam County Economic Development Council BRE Survey 7/1/99 Page 24 Table 7 Public Services Evaluation (Forks) p1 -low, 5 -high rouce Fire Paramedic fratuc I ransportation sewage eater Scnoois ax Planning Regulatory tnrorcement City Services county Services Heaitn Care Child Care Recreational Upportunity uuauty or ure Road infrastructure Highway Infrastructure Air Transportation tsuumng rermitsi Regulatory Process Page 25 Puublic �ervlces evaluation for Forks II Total number of executives responding: 25 Clallam County Economic Development Council BRE Survey 7/1/99 1 II 2 II 3 II 4 II 5 II NA p Ave 1 3 5 7 9 I 380 4% 12% 20% 28% 36% 0% 1 3 3 17 1 I 450 0% 4% 12% 12% 68% 4% 3 2 4 16 432 0% 12% 8% 16% 64% 0 3 4 3 5 4 6 I 316 12% 16% 12% 20% 16% 24% 4 2 1 5 11 2 I 3 74 16% 8% 4% 20% 44% 8% 1 1 2 1 15 5 4 40 4% 4% 8% 4% 60% 20% 3 5 15 2 4 52 0% 0% 12% 20% 60% 8% 3 7 2 10 3 373 12% 0% 28% 8% 40% 12% 4 8 5 5 3 3 16% 0% 32% 20% 20% 12% 4 3 2 8 4 4 324 16% 12% 8% 32% 16% 16% 1 3 6 6 4 5 345 4% 12% 24% 24% 16% 20% 1 2 9 10 3 4 23 4% 0% 8% 36% 40% 12% 1 5 8 5 2 4 I 310 4% 20% 32% 20% 8% 16% O 1 3 4 14 2 441 0% 4% 13% 17% 58% 8% O 4 4 3 3 8 336 0% 18% 18% 14% 14% 36% 3 2 4 2 13 0 383 13% 8% 17% 8% 54% 0% O 0 2 5 17 0 4 63 0% 0% 8% 21% 71% 0% O 4 6 8 6 0 367 0% 17% 25% 33% 25% 0% 2 2 7 6 7 0 I 358 8% 8% 29% 25% 29% 0% 4 1 7 5 1 6 I 289 17% 4% 29% 21% 4% 25% O 2 4 11 6 1 391 0% 8% 17% 46% 25% 4% Table 8 Workforce Evaluation (Forks) won( rorce evaluation for corks Tiow, o -aggo 1 II 2 II 3 II 4 II 5 II NA p Ave 1 Availability 3 4 10 3 5 312 12% 16% 40% 12% 20% 0% tluality 3 5 8 6 3 I 3 04 12% 20% 32% 24% 12% 0% Staonity 5 6 8 4 1 1 2 58 20% 24% 32% 16% 4% 4% 6 4 6 9 400 Productivity 0% 0% 24% 16% 24% 36% Total number of executives responding: 25 CLALLAM BAY AND SEKIU I. PROFILE OF PARTICIPATING BUSINESSES Eleven privately owned businesses were included in this survey. The person interviewed in each instance was the business owner. Of the eleven, five (45 are business sector classified as service, five (45 are classified as retail and one (9 is construction. The newest business ownership participating in the interview was three years and the oldest more than 30 years. When asked if they felt if their business was emerging, growing, maturing or declining, one (9 said emerging; six (54 said growing; one (9 said maturing and three (28 said declining. When asked if they thought merger, acquisition, or divestiture activity was increasing, stable, or decreasing in their industry, four (36 businesses said increasing; four (36 said stable; one (9 said decreasing; and two (18%) said they didn't know or it didn't apply. One (9%) company is considering a business expansion. The estimated cost of this expansion is approximately $60k, and may increase employment by three positions. When asked if the projected employment needs of their business was increasing, stable or decreasing, eight (73 said stable and three (27 said decreasing. Local work force quality was rated the lowest of the four county regions participating in this survey. (Table 10). Clallam County Economic Development Council BRE Survey 7/1/99 Page 26 Five of the businesses surveyed provide in -store training of employees. II. INFRASTRUCTURE SUPPORT ISSUES COMMENTS Eight (73 of the businesses interviewed expressed concern that the ESA threatened listing of three salmon stocks and related sensitive area legislation will negatively affect their business and the community. All the businesses acknowledged the increased importance of tourism on their economy. Five (45 of the businesses suggested that incorporation of their community would be beneficial. Four (37 of the businesses said that recent technology advances have had a positive impact on their business. Three businesses (27 said they projected an increase of telecommunications use, and one (9 projected an increase in water and sewer use. Of the businesses surveyed, five (46 stated they have had problems with wetland regulations and three (27 reported problems with building code requirements. Greater promotion of West End activities and businesses is an issue. With the increase of the county's room tax to 4 local businesses that generate that tax want to see more effort in promoting their area, not just the east central part of the county and the Highway 101 loop. Five (46 of the businesses stated their support for the proposed Lake Ozette Loop Road as a way to increase tourism and provide a second entrance /egress route for the community. Health care, childcare, road infrastructure and highway infrastructure were all rated the lowest of the four regions in the county participating in this survey. (Table 9). Health care and childcare rated low because of a lack of availability. Road and highway infrastructure were rated low due to deterioration and a lack of maintenance. The lack of highway signage for tourism and recreational activities in this region, and the failure to enforce highway weight and speed limits were mentioned as problems. Police and fire protection, paramedic support, schools, property taxes, planning, regulatory enforcement and county services were rated the lowest of the four regions in the Clallam County Economic Development Council BRE Survey 7/1/99 Page 27 county participating in this survey (Table 9). Response time was the main issue for police protection. Both fire protection and paramedic support is a community volunteer effort only. Some felt the public school system wasn't hitting the mark in quality of education. Most said that property taxes were too high based on the true market value of the properties. Planning, regulatory enforcement and county services faired poorly because as one person put it, these communities are "at the end of the road Comments about planning ranged from there was none, to county staff displayed a lack of a cooperative and caring attitude toward businesses. III. COMMUNITY ISSUES COMMENTS Water quality was rated highest of the four regions in the county participating in this survey. (Table 9). Both the quality of life and recreational opportunities were rated extremely high by those surveyed. (Table 9). Businesses considered their community's geographic remoteness as a mixed blessing. It provides a quality of life that is appealing to them, but the distance also adds increased transportation costs to goods and services received from out of the area, and limits product selection. Many of the businesses surveyed said the community was like a family they all knew each other and pulled together to get things done. At the same time, the size of the community population meant a smaller local support base. When asked, five (45 businesses said they thought business and economic assistance was readily available in Clallam County. Four (36 said that it was not, and one (9 said they didn't know. Ten of the eleven businesses surveyed had guarded optimism for the future of Clallam County's economy. They believed a slow, steady growth of the economy would continue, with a greater emphasis on tourism and less on the traditional natural resources base. Clallam County Economic Development Council BRE Survey 711199 Page 28 Table 9 Public Services Evaluation (Clallam Bay/ Sekiu) F low, a -nigh Police Fire Parameaic I rattic I ransportation sewage water Jcnoois l ax Planning Keguiatory tntorcement City services County services health Care Child Care Kecreationai Opportunity tawny of Life Koad Infrastructure highway Infrastructure Air Transportation building Permits! Keguiatory Process Total number of executives responding: 11 Clallam County Economic Development Council BRE Survey 7/1/99 Page 29 Pub ilia Services Evaluation for Clallam gay anciTikiu I II 2 II 3 II 4 II 5 II NA II Ave I 1 7 2 1 2 10 9% 64% 18% 0% 0% 9% 2 1 5 3 382 0% 18% 9% 45% 27% 0% 1 1 8 1 3 82 0% 9% 9% 73% 9% 0 2 1 2 3 2 1 320 18% 9% 18% 27% 18% 9% 1 2 7 1 364 9% 0% 18% 64% 9% 0% 1 3 6 1 450 0% 0% 9% 27% 55% 9% 2 9 4 82 0% 0% 0% 18% 82% 0% 3 1 6 1 345 0% 27% 9% 55% 9% 0% 4 1 2 2 2 273 36% 9% 18% 18% 18% 0% 3 4 4 209 27% 36% 36% 0% 0% 0% 2 2 4 3 273 18% 18% 36% 27% 0% 0% 11 NM 0% 0% 0% 0% 0% 100% 1 5 2 3 264 9% 45% 18% 27% 0% 0% 1 0 5 5 0 0 327 9% 0% 45% 45% 0% 0% 1 1 5 0 0 4 257 9% 9% 45% 0% 0% 36% 2 0 0 3 6 0 400 18% 0% 0% 27% 55% 0% O 0 0 3 8 473 0% 0% 0% 27% 73% 0% 1 2 7 1 0 0 273 9% 18% 64% 9% 0% 0% 3 2 4 2 0 0 245 27% 18% 36% 18% 0% 0% O 1 4 2 2 2 356 0% 9% 36% 18% 18% 18% O 2 5 2 2 0 336 0% 18% 45% 18% 18% 0% Table 10 Workforce Evaluation (Clallam Bay/ Sekiu) t1ni -orce evaluation for Clallam Bay/ Sekiu 11 -low, 5 -hlgn 1 ll 2 II 3 II 4 II 5 II NA il Ave i Avauaonny 3 1 1 3 3 0 318 27% 9% 9% 27% 27% 0% Quality 4 2 4 1 0 0 218 36% 18% 36% 9% 0% 0% Statmity 0 2 3 0 6 0 3 91 0% 18% 27% 0% 55% 0% 0 0 1 0 0 10 300 Productivity 0% 0% 9% 0% 0% 91% Total number of executives responding: 11 Summary and Recommendations The BRE Survey was performed for three reasons: first, to identify expansion and, second, retention issues that the Council and its economic development partners need to address. Third, the survey was meant to measure business perceptions concerning public services and the business environment. All three goals were met. Clearly, the public sector can find reasons to feel both self satisfied and concerned with the business communities perceptions concerning the economic outlook and quality of public support services. The business community feels optimistic about the future and the economic outlook. There are concerns about the potential impact of ESA listings. However, our businesses see slow steady growth. In addition, the survey identified significant planned expansions of existing businesses. Moreover, very few firms displaying signs of significant economic distress were identified. Health and safety services are rated highly. However, those services requiring direct customer service, i.e. permitting and planning rate lowest across all jurisdictions (permitting services in Forks were rated as average). The statistical figures should not be dismissed as simply the natural grumbling of the "regulated The individual comments collected during the survey show a clear pattern. Businesses are dissatisfied with the lack of customer service from local government during the permit process. This lack of service is exemplified through unpredictable timeframes, delays and irrational applications of standards. Comments do not support the position that the business community does not want any regulation. It's the service. Clallam County Economic Development Council BRE Survey 7/1/99 Page 30 The business community does not believe that it has a voice that is heard at the local governmental level. Consequently, perceptions are that local government has a no- growth attitude and is not supportive of the business community. Broader issues were identified that require immediate attention. Concern with the existing telecommunications system was almost universal. Telecommunications was also cited as the number one area of recent technology investment. The second most frequently raised concern was with the impacts of salmon ESA listings. While some were directly impacted by new forest harvest regulations, many businesses were concerned with other impacts through water regulation and land use restrictions. The two recommendations coming from this survey are increased communications and customer service. Local government should establish closer and more frequent means of two -way communication with the business community. Mechanisms need to be more intimate and less issue oriented than the typical public hearing or work session. The goal of the communications should be predominantly listening. The information sought should be: how are we doing, how are we improving, and how can we better support the business community. Periodic customer focus groups, not public meetings or attendance at association meetings are the recommended mechanisms. In terms of permitting and regulation, the business community needs to be viewed as the primary customer. Application procedures and approval processes should be simplified, clarified and streamlined. The issue is not one of compliance. The survey indicates there are few issues with existing regulations. The issues are ones of speed, predictability and customer service. Moreover, the only means to identify improvements are increased communications. Finally, local government and regional economic development organizations must focus on improved telecommunications and ESA issues. Public regulated{ utilities should be pressured to upgrade facilities to ensure local businesses have state -of -the art capabilities. Local government should also monitor the implementation of ESA and intervene in the process to assure that impacts to local business and the economy are minimized. In conclusion, the Economic Development Council will continue to communicate with the business community concerning the health of the local economy and the issues they face in operating their businesses. The Council commits that the results of this survey are put to use and communicated to local government in an effort to further improve the Clallam County business environment. Clallam County Economic Development Council BRE Survey 7/1/99 Page 31 THIS AGREEMENT is entered into this /say of awyska 19 qr, by and between the City of Port Angeles, Washington, a municipal corporation, hereinafter called "City and the Clallam County Economic Development Council, Inc., a non profit corporation, hereinafter called "Contractor WHEREAS, the City is a municipal corporation of the State of Washington authorized to contract for economic development services; and, WHEREAS, it is in the public interest for economic development activities to be performed that will enhance the economy and employment opportunities in the City of Port Angeles; and, WHEREAS, the City has need of research and assistance in regards to these and other aspects of its operations; NOW, THEREFORE, in consideration of the above representations and the mutual covenants and agreements herein, it is agreed by the parties as follows: 1. PERFORMANCE BY THE CONTRACTOR A. General Goals. AGREEMENT The Contractor shall use its capabilities to promote and enhance economic development and employment opportunities in the City in accordance with the mission and goals established by the Contractor's Board of Directors as set forth in the attached Exhibit "A The Contractor shall use its resources to jointly market the facilities and capabilities of the City to new and existing businesses with the goals of increasing City revenues and general employment opportunities for City residents. 5: /360c, B. Core Business Recruitment and Assistance Program. (1) The Contractor shall serve as a general economic development research and reference service for the City and in this capacity shall perform such functions as conducting ongoing basic market research, identification of target markets, provision of generic regional marketing and recruitment services aimed at target markets, participating in the process of responding to inquiries, site selection consultation, and case management, regarding new industries or other commercial ventures which seek information concerning the facilities and resources managed by the City or which may involve properties and/or infrastructure within the Port Angeles Urban Growth Area (UGA). (2) The Contractor shall, upon request, consult with and assist the City at reasonable times and in a reasonable manner provide effective industrial marketing guidance to City staff and provide services in the development and execution of programs aimed at better planning, utilization, promotion, and advertisement of community services, facilities, infrastructure, and property. (3) The Contractor shall maintain and enhance working relations with existing businesses to assist them with start-up and expansion needs, technical assistance, access to business counseling and financing resources including aid and assist to at -risk businesses. (4) The Contractor shall assist the City in preparing replies to inquires received by the City or the Contractor regarding City facilities and resources relative to economic development retention and growth opportunities. (5) The Contractor shall assist the City in applying for and administering economic development related grants, including any potential to support the development of infrastructure and to leverage the Port Angeles Works Program. (6) The Contractor shall update and maintain a community profile specific to the greater Port Angeles area, which highlights demographic and development data customarily of interest to industrial/commercial developers. The community profile report shall be delivered to the City by July 31.1999. (7) The Contractor shall maintain and update descriptive listings of available industrial and commercial sites for new or expanded industry which are, or may be, served by the City, including appropriate development information for those industrial sites. An initial report of the available sites as described shall be delivered to the City within 90 days of the signing of this agreement or by March 31. 1999. Updates shall be delivered every 90 days thereafter during the term of the agreement. C. Extended Business Recruitment and Assistance Program. Tier I. (1) The Contractor shall work cooperatively with the City in the development and implementation of the Port Angeles Works Program. (2) In consultation with the City, the Contractor shall develop a strategic, multi -year regional marketing and development plan. The plan shall be coordinated with local jurisdictions, the State of Washington and other appropriate parties. The plan shall update and validate appropriate recruitment target markets, develop a strategic media, public and business relations program, and develop revised and new regional marketing materials as may be appropriate. The Contractor shall work to involve other economic development interests in the development and financial support of the plan. A written report of the plan shall be delivered to the City for review within 240 days of the signing of this agreement or by October 31, 1999. (3) The Contractor shall assist the City in providing information, through articles in the "CityReport" and /or other appropriate presentation mediums to the City Council and Port Angeles citizenry, regarding the impact of transportation, utility infrastructure (including telecommunications), electrical deregulation, and development and preservation of industrially zoned properties which affect Port Angeles's economic development competitiveness, to promote increased understanding and appreciation of the value and importance to the community of maintaining and expanding local industry. (4) The Contractor shall work with the City in the development of a PowerPoint presentation to use in informing the private and public sectors regarding economic development issues and efforts undertaken on behalf of the citizens and businesses of Port Angeles. An initial PowerPoint presentation shall be completed by April 30A999. The presentation shall be updated to include new appropriate information following the completion of C(2) above. (5) The Contractor shall work with the City in the development and maintenance of a documented Industrial Property and Infrastructure Inventory, expanding on the report outlined above under B(7), to include all vacant and operational industrial sites within the Port Angeles UGA along with location, zoning, site dimensions and acreage, existing structure descriptions and or plans as may be appropriate, transportation access, availability of utilities, neighboring land uses, ownership, and contact person. The Inventory shall be completed within 180 days signing of this agreement or by July 31 .1999 (6) The Contractor shall work with the City to study and highlight Inventory attributes and deficiencies relative to meeting the needs of economic and industrial growth and shall assist in the development of a strategy for correcting deficiencies as necessary. Tier H. (1) The Contractor shall analyze the viability for development of existing and new industrial properties, including acquisition costs, infrastructure costs, and resale and/or lease rates, to determine the potential competitiveness of Port Angeles area sites. A report summarizing the analysis and options available shall be delivered to the City within 210 days signing of this agreement or by August 31.1999 (2) The Contractor shall work with the City to research, identify, and implement the addition of new development incentive programs or packages as may be applicable to Port Angeles economic development efforts. D. Handling Prospects and Negotiations. Case by case business expansion and recruitment activities can begin with contacts originated through the WA State Dept. of Community, Trade and Economic Development (DCTED) and referred to the Contractor, directly by the Contractor, or directly by the City. In such dealings, the Contractor shall participate in the handling of prospects, and subsequent negotiations in accordance with the following guidelines: (1) Contacts made directly to the Contractor or referred to Contractor by DCTED. (a) The Contractor will provide general information and other data requested by the prospect. Within 24 hours of being contacted by a prospect, the Contractor shall notify the City Manager, or his designee, by phone and /or e-mail, regarding the expression of interest by the prospect. (b) If the prospect indicates an interest in specific business locations, the Contractor shall notify other affected parties and property owners as appropriate, share information gathered, make appropriate introductions, and assist in follow -up marketing as requested. (c) If the prospect indicates interest in specific sites, but requests confidentiality, the Contractor will keep the City Manager fully informed without revealing the identity of the prospect This information will remain confidential until release is authorized by the prospect (d) When the prospect establishes formal discussions with affected parties and commits to a site within the City's jurisdiction, responsibility for managing the contact may be transferred from the Contractor to the affected party /entity on request. The Contractor will serve as the prospect's community advocate and provide assistance as requested (2) Contacts made directly to the City (a) The City shall rely on the Contractor to supply recruitment information and services as described in 1A and 1B. When the City receives a direct contact or is managing a development prospect and desires support from the Contractor, it need only request such assistance be made within a reasonable time frame, and Contractor will render such assistance in a prompt, professional manner. (b) If the City and another local entity served by the Contractor requests assistance with the same prospect, the Contractor will so advise the affected entities Under this circumstance, subsequent requests for assistance must be mutually agreed to by the affected local entities before the Contractor renders it (3) Negotiations. Public events such as media conferences, ground breaking ceremonies, and ribbon cuttings will be coordinated will the siting jurisdiction and other partners The City and the Contractor will be jointly responsible for working on logistics relating to these events. E. The Contractor shall provide to the City and to such persons as the City may direct, free of additional charge, materials prepared by the Contractor. F. The Contractor shall maintain records and report to the City as follows: (1) The Contractor shall maintain accounts and records that accurately reflect the revenues and costs for the Contractor's activities under this Contract. These financial records, and all records related to the performance of this Contract, shall be available for City inspection. (2) The Contractor shall provide the City with quarterly reports fully describing what work has been performed pursuant to this Contract, and including a current statement of revenues and costs. (3) The Contractor 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. (4) The Contractor shall provide the City with an annual budget, including current salaries and benefits for all employees and classifications of employees and shall notify the City within 30 days of any increases in salaries or benefits from the previous year 2 PERFORMANCE BY THE CITY A. For the "Core" services rendered by the Contractor, the City will provide, by payment in cash, the amount of $25.000 and, in -kind telephone service, an amount not to exceed $2.500 and, for the "Tier r services rendered by the Contractor, the City will provide, by payment in cash, the amount of $5.000. and, for the "Tier II" services rendered by the Contractor, the City will provide, by payment in cash, the amount of $5,000 B. Payment by the City shall be due upon receipt and acceptance by the City Manager of the Contractor's quarterly report as required under Paragraph IF of this Contract. The Contractor will invoice the City for all quarterly payments. 3 TERM. This agreement shall be for a term of one year, commencing on January 1, 1999. 4. ASSIGNMENT. This agreement may not be assigned by either party to this agreement except by signed amendment. 5. BREACH A. In the event of either party's material breach of the terms or conditions of this Contract, the non breaching party reserves the right to withhold payments or services until corrective action has been taken or completed. However, the party shall not exercise this right until they have given written notice of such material breach to the breaching party and ten days have passed since the receipt of such notice. This option is in addition to and not in lieu of the parties' right to terminate this Contract or any other right which State law offers for breach of contract. B. If either party shall materially breach any of the covenants undertaken herein or any of the duties imposed upon it by this Contract, such material breach shall entitle the other party to terminate this Contract, provided that the party desiring to terminate for such cause shall give the offending party at least twenty days' written notice, specifying the particulars wherein it is claimed that there has been a violation hereof, and if at the end of such time, the party notified has not removed the cause of complaint, or remedied the purported violation, then the termination of this Contract shall be deemed complete. 6. NON DISCRIMINATION A. The Contractor shall conduct its business in a manner which assures fair, equal and non- discriminatory treatment of all persons, without respect to race, creed or national origin, and, in particular: B. The Contractor shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity /affirmative action requirements; and, C. The Contractor shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran's status, disabled veteran condition, physical or mental handicap, or national origin. 7 HOLD HARMLESS AND INDEMNIFICATION. The Contractor shall protect, defend, save harmless, and indemnify the City, its officers, agents, and employees from and against any and all claims, damages, losses, and expenses, including reasonable attorney's fees, occurring, arising, or resulting from supplying work, services, materials, or supplies in connection with the performance of this Contract 8. ENTIRE CONTRACT ATTEST: The parties agree that this Contract is the complete expression of the terms hereto and any oral representation or understanding not incorporated herein is excluded. Further, any modification of this Contract shall be in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereto caused this Contract to be executed the day and year first hereinabove written. CITY OF PORT ANGELES By: 0 Ca Mayor Gay Braun Becky J. Up C'='' Clerk Vice President Craig D. Knit tson, City Attorney N: \PROJECTS \PAWORKS \AGMT99.EDC CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL President 1998 Work Program CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL The mission of the Council is to create family wage income jobs and business investment for the benefit of Clatlam County residents. The Council accomplishes this mission through activities that recruit new businesses, expand and retain existing businesses and other actions that promote development and diversification of the local economy. The work program specifies the Council's activities for calendar year 1998. It builds on the Council's on -going programs considering input from the Council's membership, contractors and customers. BUSINESS RECRUITMENT The Council will continue aggressive targeted recruitment focused on manufacturing industries that create family wage income jobs. Targeted sectors include wood products, marine trades, expanding technology industries (e.g., telecommunications and electronics) and other opportunities. The goal of business recruitment is to create an average of 50 new manufacturing jobs each year over a ten -year period. Business recruitment will be conducted in cooperation the Port of Port Angeles, its contract customers and local governments. The Council will prepare and implement a marketing program identifying targeted sectors, marketing methods, respective responsibilities and budgets. The Council's Web site will be continually upgraded to serve as a marketing tool for industrial recruitment. The Council will actively market the Port of Port Angeles's new spec building at the Airport Industrial Park. The Council will prepare and disseminate a monthly marketing report to its customers. Exhibit "A" BUSINESS ASSISTANCE AND BUSINESS RETENTION BUSINESS RETENTION AND EXPANSION The goal is to establish and enhance working relationships with existing businesses to assist them with expansion needs and help maintain businesses and employment. Also, the Council will provide new and existing businesses with access to business counseling and financing resources to expand and maintain operations The objective is to improve the business and demonstrate commitment to existing businesses. The Council will rely on its partnerships with the Washington State Small Business Assistance Center and Service Corp of Retired Executive (SCORE) to provide direct services. The objective is to create over $1.5 million in new investment in land buildings and equipment. Continue 1/2 time administrative support of the Business Development Specialist and SCORE counselors. Complete recruitment of new Port Angeles based SCORE counselor. Continue marketing program for the SBDC and SCORE services. Institute a calling program directed at targeted manufacturing and large service businesses. Y Conduct one -to -one and group meetings meeting to discuss services of the Council, needs of company and possible solutions to problems. Z Market the services of the Council. Provide access to business counseling utilizing the SBDC. Market the availability of financing resources for expansion or retention needs. Study the capitalization of a revolving loan fund using the relending programs of the Rural Development Administration (RDA). The focus of the fund would be major loans to existing businesses that create new employment. Develop a local revolving loan fund for infrastructure investment as authorized by SB 4750. OTHER ACTIVITIES The Council must continue to develop and evolve to meet the changing economic and business environment of the community and the needs of its customers. Two -way communications is imperative. Feedback from its customers must be continual. Marketing of the Council's accomplishments should be on going. The Council should define its achievements in terms of the economic development benefits to the community (jobs; tax base; wages; etc.) Continue to publish the Clallam County Data Book. Conduct on -going Board education on economic development best practices. Continue to invest in office technology to enhance office efficiency and to support advanced marketing research and recruitment. Work with other community based organizations to define the Council's roles and responsibilities for economic development. Support continuing education for Council staff to enhance economic development skills. CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL 1998 Budget Without EDA REVENUES Unrestricted Reserves Available for Operations 111,119 78,238 42% Contracts Total Contracts 160,250 214,250 -25% Earned Income Total Earned Income Program Revenue Total Program Revenue Other Income Total Other Income 2,000 2,000 0% TOTAL AVAILABLE CASH 180,152 472.250 -62% 1998 1997 Variance EXPENSES Adopted Adopted Personnel: Total Personnel 149,808 148,855 1% Communications: Total Communications Office Operation: Total Office Operations Travel/Training /Subscriptions: Total Travel/ Training/ Subscriptions 1998 1997 Variance Adopted Adopted 17,900 14,000 28% 245,000 -100% 16,850 12,950 30% 18,100 21,600 -16% 20,000 14,500 38% Program Expense Total Program Expense 32,000 280,800 -89% Contingency (10% of operations) 8,695 8,485 2% TOTAL DISBURSEMENTS Ending Cash Available for Operations Net Increase (Decrease) in Cash 1998 RESERVE CALCULATION Monthly Average Operating Cost Personnel less Contingency Communications Office Operations less Professional Services Travel Total Monthly Operations Reserves at 6 months Operations Projected Cash on Hand 12/31/97 Less Reserves Unrestricted Reserves Projected Ending Unrestricted Reserves 45,816 63,298 -28% s. ,.�k:3 3a 14,940 337% 245.453 487.190 -50% 1998 1997 Variance Adopted Adopted 11,417 1,196 1,092 1,667 15,372 92,229 203,348 92,229 111,119 A* 11,277 1% 871 37% 1,383 -21% 1,208 38% 14,739 4% 88,434 4% 166,672 22% 88,434 4% 78,238 42% CITY OF December 17, 1998 Re: 1999 Contract Dear Bart: Sincerely yours, Enclosures W A S H I N G T O N U.S.A. CITY MANAGER'S OFFICE Becky J. Upton, CMC City Clerk/Management Assistant Mr. Bart Phillips Executive Director Clallam County Economic Development Council P. O. Box 1085 Port Angeles, WA 98362 As you know, at its meeting of December 15, 1998, the Port Angeles City Council approved the 1999 contract between the City and the Clallam County Economic Development Council. Enclosed are two copies of the contract. Please obtain the signatures of the President and Vice President and return one fully executed copy to my attention. If I can be of any further assistance, please feel free to contact me. I can be reached at 417- 4634. 321 EAST FIFTH STREET P. 0. BOX 1 150 PORT ANGELES, WA 98362-0217 PHONE: 360- 417 -4500 FAX: 360- 417 -4509 TTY: 360- 417 -4645 E -MAIL: CITYMGR@a CI.PORT- ANGELES.WA.US Clallam County EDC P 0 Box 1085 102 E. Front St., Fl. 2 Port Angeles, WA 98362 BILL TO City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 P.O. NO. TERMS PROJECT Upon Receipt DESCRIPTION QTY RATE AMOUNT 4th Quarter Services: Dec 1998 6,250.00 6,250.00 1988 111, "?'D Total 5. /31p C Invoice DATE INVOICE 12/31/98 26 $6,250.00 Clallam County EDC PO Box 1085 102 E. Front St., Fl. 2 Port Angeles, WA 98362 BILL TO City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 DESCRIPTION 3rd Quarter Services: September 1998 For questions regarding this invoice, call Katy Stansifer (360) 457 -7793. EUDGET CODE: i_11.49‘!0 t Make all checks payable to: Clallam County EDC 5. /31o Invoice DATE INVOICE 9/30/98 23 TERMS Upon Receipt AMOUNT 6,250.00 Total $6,250.00 CLALLAM COUNTY To: Patrick Ibarra, City of Port Angeles Tan Iavrell, City of Sequin DanL:einan, CityofFaks Tun Rwnpelbes, Clal lam County Guis Anderson, Port of Port Andes Mike McInnes, Clallam Courty PUD CC: Board of Directors; Council Membership From: Bart Phillips, Executive Director Date: 10/15/98 Re: Third Quarter 1998 Report ECONOMIC DEVELOPMENT COUNCIL 1998 Third Quarter Report The following is a synopsis of activities and results for the quarter ending September 30, 1998. Recruitment and Marketing Client Activity The Council continues to support the relocation of Pacific Bay to the Carlsborg Industrial Park. Construction was completed on the facility September 30. The company opened operations 10/12 with 30 employees. Much of the assistance centered upon employee hiring and assuring telecommunications services were in place at opening. The US West strike complicated matters. However, through our communication to the various levels of US West and the diligence of field staff, disaster was avoided. Crown Pacific is nearing completion of their $20 million high tech stud mill near Port Angeles. Initial testing of the facility is underway and it should be fully operational in the fourth quarter of 1998. Initial hires at announcement were 40, however, it appears this number may be increasing. The Council and Port continue to work with a major client that is evaluating expansion to the County. The Council generated the lead through the State of Washington. Based upon our proposal the company sought further assistance evaluating options at the Port's Port Angeles Industrial Park. A decision can be expected in the fourth quarter. In July, United Wholesale Supply expanded their operations to Port Angeles. The Council was contacted through the EDC's Web Site by the company's representative and provided assistance in site location and demographic information. This company distributes custom cabinets and appliances. Marketing The Council has focused significant efforts on marketing the Port's multi -tenant manufacturing facility. The facility is currently under construction at the Port's Port Angeles Industrial Park. A major direct mail campaign was undertaken. Information and spec sheets were distributed to leads generated at the IBEX marine trade show, the Anaheim wood working show and the ICCM Call Center trade show. In addition, information has been distributed to other leads developed from trade shows, state referrals and other sources. Results from the display advertising program were disappointing. No contacts were generated. However, the direct mailing to EDC members did generate two leads that are being worked. The Council participated in two trade shows during the quarter: the International Woodworking Fair in Atlanta, Georgia (August) and the International Incoming Call Center Management in Denver (September). Ten leads of expanding firms were generated at IWF, one of which specified interest in the Olympic Peninsula. All were long term prospects planning expansions two years out. ICCM was extremely valuable. Not only did we generate several leads of firms looking at establishing new customer service centers, but valuable networking contacts were made with vendors located in the Seattle area. They are now aware that Clallam County is seeking customer service and back office operations. The Council will support the Science Technology and Manufacturing Association at the Tech Expo in Boston in November. The purpose of this show is to expand business opportunities for Clallam County high tech firms. The Port of Port Angeles and Council are providing financial support. The Council has subscribed to a recruitment lead source operated by the National Association of Manufacturers. NAM serves as a clearinghouse for members seeking relocation and expansion sites, will pre qualify leads and sorts for industry type and region. The Council purchased the service in partnership with three other Washington EDCs. Managing partner, Dave McFadden of the Yakima Economic Development Council has been asked to sit on the NAMS committee developing this service. Our participation in NAMS will gain access to leads that are bypassing state contacts and consultants. In reviewing past leads the typical client is a small to moderate sized firm with 50 -200 employees. Clallam County Opportunity Fund The Council has managed the review process for the Clallam County Opportunity fund. The fund will result from sales tax proceeds as authorized under RCW 82.14.370, Sales and Use Tax for Distressed Counties Public Facilities in Rural Counties. Discussions with the Council, the Port of Port Angeles and the cities of Port Angeles, Forks and Sequim have resulted in a recommendation to be made by the Council to the Clallam County Commissioners which will outline investment and operating principles. The intent of the law was to create a local long term financing program for infrastructure which will create jobs. The recommendation to be made to the Commissioners outline the following principals: Sustainability of the program and maximum job and economic impact Promote local initiative and sound planning Support basic job creation and private capital investment Support feasibility or marketing studies for speculative projects In addition, implementation, administrative and evaluation processes are addressed in the recommendation. Business Assistance SCORE James Budd, new SCORE Counselor has brought his banking background to eleven clients during the quarter. Jim spends one day a month at the Seattle Business Information Center and the Council will look to him for advice on improving local resources for small businesses. Chuck Lamb met with twenty -three clients. The increase counseling activity is a result of the heightened marketing of the Council's services. SBDC Kathleen Purdy, Business Development Specialist, provided a program update to the Council at the September Board Meeting. The update outlined the services provided and their prioritization in terms of time spent. Those are as follows: Buying a business Selling a business Financing/sources /fmancial analysis/cost control Business Plans Marketing/Sales Partnerships Hire/Fire employees Analyze the business Inventory control The investment dollars for Clallam County through July 1998 is $3,736,000 with 19 new jobs and 1.5 saved jobs. Olympic Microloan Two loans were made during the quarter. The first was to a start-up retail establishment for $8,000 and the other $5,000 loan was to purchase an existing retail business. The Council hosted the Olympic Microloan Steering Committee meeting in September. ASSETS Current Assets Checking /Savings 1000 Petty Cash 1010 EDC Savings 1020 EDC Checking 1040 CD FFS&L 349 1042 CD FFS&L 108 1043 MRA FFS&L 609 Total Checking/Savings Accounts Receivable 1215 AIR City of Port Angeles 1216 A/R PUD 1217 A/R Port of Port 1225 A/R Forks 1228 A/R Wash State University NxLeveL Total 1228 A/R Wash State University 1250 AIR PDA Planning 1260 Data Books 1270 Memberships 1290 A/R Due (to) from FTC Total Accounts Receivable Other Current Assets Prepaid Assets Total Other Current Assets Total Current Assets Fixed Assets 1350 Equipment 1351 Accumulated Deprec. Total Fixed Assets TOTAL ASSETS LIABILITIES EQUITY Liabilities Current Liabilities Accounts Payable 2000 Accounts Payable Total Accounts Payable Other Current Liabilities Deferred Revenue Payroll Liabilities Sales Tax Payable Total Other Current Liabilities Total Current Liabilities Total Liabilities Equity 3900 Net Assets Opening Bal Equity Retained Earnings Net Income Total Equity TOTAL LIABILITIES EQUITY Clallam County EDC Balance Sheet As of September 30, 1998 Sep 30, '98 162.95 71,223.61 1,323.83 19,656.51 17,590.24 13,725.61 123,682.75 6,250.00 1,750.00 2,500.00 1,125.00 38.00 38.00 2,000.00 53.95 975.00 40,401.10 55,093.05 4,095.89 4,095.89 182,871.69 37,264.44 28,628.86 8,635.58 191,507.27 1,287.50 1,287.50 636.50 4,150.15 12.47 4,799.12 6,086.62 6,086.62 209,148.99 0 42 7,728.61 31,457.37 185,420.65 191,507.27 Page 1 10/09198 Gross Profit Expense 6000 Personnel 6050 Communications 7000 Office Operation 7050 TravlTrain/Subscrp 8000 Program Expense 9100 In -kind Donations Total Expense Net Income Income 4000 Contracts 5000 Earned Income 5050 Program Revenue 5070 Other Income Total Income Clallam )unty EDC P &L Budget Comparison January through September 1998 Jan Sep '98 Budget 3 Over Budget of Budget 110,860.62 160,250.00 49,389.38 69.2% 18,310.88 17,900.00 410.88 102.3% 1,001.23 5,023.29 135,196.02 178,150.00 42,953.98 75.9% 135,196.02 178,150.00 42,953.98 75.9% 105,615.50 149,808.00 44,192.50 70.5% 10,078.70 16,850.00 6,771.30 59.8% 10,437.42 18,100.00 7,662.58 57.7% 12,432.36 20,000.00 7,567.64 62.2% 27,513.53 32,000.00 4,486.47 86.0% 575.88 166,653.39 236,758.00 70,104.61 70.4% 31,457.37 58,608.00 27,150.63 53.7% Page 1 Memorandum To: Local Governmental Partners CC: Board of Directors; Council Membership From: Bart Phillips, Executive Director Date: 07/14/98 Re: Second Quarter 1998 Report The following is a synopsis of activities and results for the quarter ending June 30, 1998. Recruitment and Marketing Recruitment The Council worked with four clients during the quarter and continues the relationship with three of them. The fourth, a Call Center, informed the Council that the company had eliminated Washington State as a possibility due to the financial impact of the B 0 tax on their retail operation. This issue was forwarded to state officials. Of the three remaining, the Council has prepared proposals and provided follow up information regarding labor availability, available skills and workforce training capacity. Total potential employment approaches 180 jobs. In addition, the Council is managing 31 other recruitment leads developed from previous trade shows, state referrals and other sources. Preplanning is underway for participation in three trade shows slated for late summer /fall: International Woodworking Fair in Atlanta, Georgia (August); International Plastics Exposition in Chicago, Illinois (October) and International Incoming Call Center Management in Denver (September). The first two shows are in partnership with a consortium of four other EDC's. The Call Center show is a sole initiative of the Council. Plan and reservations are in place for three shows in 1999. Multi tenant Manufacturing Facility Marketing for the Port of Port Angeles' new multi- tenant manufacturing facility at Fairchild Industrial Park has been underway since May. Display and classified advertising has appeared in the Puget Sound Business Journal and local publications. The phased program will include contacts with the local real estate community for outside leads, direct mail, and direct calls on past relocated businesses to develop referrals. Each of the three current leads has expressed marked interest in the building. The Port has let the bid for the building and it is expected to be finished in the fall of 1998. 5. c Crown Pacific and Pacific Bay Construction is on schedule for the fall opening of the new Crown Pacific Mill. The Company has initiated hiring of the 45+ positions. Permitting assistance was provided in the second quarter for the facilities air quality permit and grading permit. Construction has begun on the building in Carlsborg Industrial Park for Pacific Bay, Inc. Assistance was provided with closing on the property master business licensing. The Company's projected employment is 30. Pacific Bay is pleased with the community and regulatory reception to their investment. They have discussed potential expansion to include manufacturing in the near future. Economic Development Planning The Council hosted a meeting in April of all of the elected officials in the County. The purpose of the meeting was to examine and discuss the economic development plans of the Council, the cities of Port Angeles, Forks and Sequim, the County, the Port of Port Angeles and the PUD. The meeting was an unqualified success if for no other reason than it served as a forum for the officials to meet and discuss issues of mutual concern. The result of the meeting was that the Council prepared a comparison of economic development objectives of these jurisdictions for analysis by the group. Additionally, staff was to prepare a summary of land -use designations for industrial development. A meeting was to be scheduled for July. Community Development Clallam Bay Sekiu Community Center The Council has been supporting the community of Clallam Bay /Sekiu in their revitalization efforts. A key project identified by the community was the renovation of the Sekiu Community Center, a Washington State historic landmark situated in Sekiu. The community wants to renovate the building for the community to use, as well as marketing it as a conference center for tourism related activities. The Council assisted the community in preparation and attendance at the Governor's Timber and Salmon Symposium in Ellensburg in June. A limited number of communities are invited to bring their projects to the Symposium for several days of intensive technical assistance and development. Kathy Shingleton, Gene Laes, Chris Mohr, and Patrick Marrin were the community members on the team. This process was the same one used by the Port of Port Angeles, the City of Port Angeles and the Council to develop funding for the Valley Creek Estuary project. The community now has a strategy including renovation of the building, expansion of community and senior programs and plans for conference and meeting center programs to expand the tourism base of the community. The Council will continue to support this project as it is refined and implemented by the community. Sequim Streetscape The Council met with representatives of the Sequim Streetscape Committee and Dick Larman, Scoping Agent from the Washington Community Economic Revitalization Team for the Sequim Streetscape project. Dick will be providing technical assistance in the form of expertise on transportation, downtown revitalization, safety issues, access to materials and information on funding sources. The Council will continue to support this project. Clallam County Golf Extravaganza The Council held its Fourth Annual Golf Extravaganza in June. Seventy-six golfers participated in a perfect day of sunny skies and fast paced best ball scramble. For the second year in a row, the team led by Council President -elect Randy Johnson from Green Crow won "Low Gross" and tournament Hole -In -One sponsor Dan Wilder, Jr.'s team won "Low Net Many local businesses as well as some corporate partners from off the Peninsula sponsored the event. A special note of thanks is given to Council member Ken Hays of Hays Architects who contributed year -long participation and support. The Tournament netted $1,785. Sponsors and players are already asking to participate in 1999. Business Assistance SCORE The Council introduces James Budd, new SCORE Counselor joining the EDC in June. Jim's background is in banking and he had worked with the SBA and SCORE as a corporate banker for many years. He completed the courses held by SCORE in Seattle and is assisting in the Seattle office once a month along with volunteering his time in Port Angeles. Veteran counselor, Chuck Lamb, visited with twenty -nine entrepreneurs during the quarter, some more than once. The Council is actively marketing the business counseling services available. The early phone contacts indicate an active interest in these services. SBDC Kathleen Purdy, Business Development Specialist, counseled businesses during the quarter resulting in two new business start-ups with 3.5 jobs, creation of one additional job through business expansion and an investment of $212,500. Her counseling also resulted in seven saved jobs. She conducted a workshop on "Starting a Business" which was attended by twelve participants. She is currently working with clients on good projects with a potential of $2,000,000 investment in Clallam County. Bank Meeting The Council will host commercial loan officers from banks around the County at a luncheon on July 29 to present our business assistance programs for increased referrals. In addition, we will have representatives from U S Department of Agriculture Rural Development Assistance, Cascadia Revolving Fund, and Washington State Department of Community Trade and Economic Development. These specialists will present information on loan funds, gap financing and other non traditional funding opportunities for the bankers' use. Clallam County EDC P O Box 1085 102 E. Front St., Fl. 2 Port Angeles, WA 98362 BILL TO City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 1st Quarter Services DESCRIPTION Make all checks payable to: Clallam County EDC For questions regarding this invoice, call Katy Stansifer (360) 457 -7793. BUDGET C h ODDE:: UJ APP Total ie Invoice DATE INVOICE 3/31/98 18 TERMS Upon Receipt AMOUNT 6,250.00 $6,250.00 Memorandum To: Local Governmental Partners CC: Board of Directors; Council Membership From: Bart Phillips, Executive Director Date: 05/14/98 Re: First 1998 Quarter Report The following is a synopsis of results and activities for the quarter ending March 31, 1998. Business Recruitment and Marketing Trade Show Partnership The Council joined with six other Washington economic development agencies to participate in industry specific trade shows. This partnership diffuses the cost and will provide each agency with qualified leads. The group markets the State of Washington with the agreement that each agency will follow up on all of the leads. This approach works well, as companies may not be familiar with our county but are interested in Washington as a whole. This group manned a booth at the International Boatbuilder's Exhibition and will present the state at three additional trade shows in 1998. The targeted industries include plastics, value -added wood products and metal manufacturing. The Council is administering the overall partnership. Marine Trades Leads The Council generated over 15 leads through its participation at the International Professional Boat Builders Exposition. The quality of leads was higher than previous years. Four firms were relocating and have received follow -up information from the Council. Metalworking and Manufacturing Leads The Council generated over 80 leads from attending the WESTEC '98 trade show in Los Angeles. A follow -up mailing was done to introduce Clallam County to those companies. This is North America's largest annual metalworking and manufacturing exposition. Thirty New Jobs Distribution Company Relocates to Clallam County Pacific Bay, Inc., a company which distributes fishing rod components to firms around the nation, Canada, Europe and Asia has signed a lease and is building an 18,000 square foot distribution facility in the Carlsborg Industrial Park west of Sequim. It is estimated that there will be 30 jobs available through this relocation. The Council responded to an inquiry from this California company early in 1998. The company was looking for relocation site information about our county. The Council provided rapid response with potential sites and other information, and subsequently arranged a tour of the sites. The company plans to move early in the summer. The Council continues to assist the 1 company, resolving property, permit and many other issues. Pacific Bay was encouraged to look at the County by a longtime business associate and resident of Sequim. This is the type of relationship marketing that the Council has been encouraging in the community. Environmentalists and Crown Pacific Discuss Air Quality Issues The Council held a meeting with local environmentalists and Crown Pacific to resolve air quality issues. The construction of the mill is on schedule for a fall opening. It is anticipated that this investment will create approximately fifty jobs. May 14, 1998 Council Responds to Requests for Proposals The Council prepared three proposals during the month of March. One was a request from Deloit Touch/Fantus for a retail call center operation. Another was a proposal for a wood products company (employment 150) and a third was a natural resources company (120 jobs). These operations are well suited to our assets. An earlier proposal is still pending for a silicon manufacturer. The Council Assists the Port of Port Angeles to Construct Manufacturing Facility The Port of Port Angeles will construct a 25,000 square foot manufacturing facility at the Port Angeles Industrial Park. The Council and the Port successfully submitted an application to the Community Economic Revitalization Board for a $500,000 loan for construction which will be matched by $400,000 from the Port. This building will assist the Council in recruitment efforts by providing a flexible manufacturing space for potential clients. The Council will focus a portion of its marketing efforts on recruiting tenants for the building. Community Development Clallam Bay/Sekiu The Council is assisting the communities of Clallam Bay and Sekiu with the renovation and development of the Clallam Bay Sekiu Conference and Community Center. Council staff is assisting the County and representatives from the community to prepare and attend the Symposium conducted by Washington State Department of Community Trade and Economic Development in Ellensburg Washington in June, 1998. At the Symposium, the community group will develop plans for implementation of the project and funding options. The Council will assist the community in the execution of the plans. Sequim The Council is assisting the Sequim Dungeness Valley Chamber of Commerce in the development of a business calling program. The program will use the expertise of business persons, government representatives and volunteers to call upon and assist local existing businesses. It is the goal of the Chamber to assist in expansion needs as well as identify and help those businesses which may be in trouble. Business Assistance 4.5 New Jobs and 8 Saved Jobs The Council's Business Development Specialist Kathleen Purdy counseled sixty-nine different businesses during the first quarter in Clallam and Jefferson Counties, thirty-five of which are new clients in 1998. Investment for the quarter totaled $1,308,975 resulting in 4.5 new jobs and 8 saved jobs. One client made a new investment of $123,975 to purchase an existing business saving one job. This investment was made possible by a partnership of the new owner, the existing owner, the commercial bank loan and the Washington State Community Trade and Economic Development's Coastal Loan Fund. 2 SCORE counselor Chuck Lamb met with thirty-six clients during the quarter. Chuck observes that many of his current clients are former Rayonier employees whose benefits may be running out. These clients are using our services to identify their talents and skills to open a business as an alternative to other employment. Many of these people have good ideas and will probably succeed. 1998 Work Plan May 14, 1998 The Council held is Annual Board Retreat in February to evaluate the present goals and objectives of the 1997 -1998 Work Plan and to identify any new issues for 1998. The Board focused on the economic development objectives laid out in the four Comprehensive Plans within the County. The following recommendations were developed as a result of the Retreat, and were incorporated into the 1997 -1998 Work Plan by a vote of the Board of Directors. Staff reviewed input from the 1998 retreat and summarized four findings: First, there is no direction to modify our current work plan as it relates to the core services of business recruitment, business assistance and business retention. Second, there was confirmation that the Council is the organization to implement Port Angeles Works. The work would be advised by a City-named Committee and funded by the City. It was clear that this work would necessitate increased capacity at the Council, which would be dedicated to the project. However, any staffmg would be less than that required by a stand -alone effort by the City and therefore more cost effective. It is possible to implement Port Angeles Works without diminishing services to other clients. Third, it was recommended that the Council support a committee to revise Clallam County 2020. The Committee would be facilitated and utilize resources committed by the community. Fourth, it was recommended that the Council address the management of public resources in Clallam County to increase the benefit to taxing districts and the public. The Executive Board found that the appropriate role for the Council is to provide research, analysis and public education of not only natural resource based industries but also other areas of the local economy. The Executive Board was concerned with taking overtly political roles on resource issues. However, coordination of research, public education and other roles may be appropriate. This expanded role could only be accomplished with additional financial resources. 3 LIABILITIES EQUITY Liabilities Current Liabilities Accounts Payable Credit Cards US Bank Other Current Liabilities Payroll Liabilities Sales Tax Payable Total Other Current Liabilities Equity 3900 Net Assets Clallam County EDC Balance Sheet As of March 31, 1998 Mar 31, '98 ASSETS Current Assets Checking /Savings 1000 Petty Cash 175.33 1010 EDC Savings 114,577.35 1020 EDC Checking 3,625.15 1040 CD FFS&L 349 19,106.40 1042 CD FFS&L 108 17,227.23 1043 MRA FFS&L 609 13,446.83 Total Checking /Savings 168,159.29 Accounts Receivable 1215 A/R City of Port Angeles 6,250.00 1216 A/R PUD 1,750.00 1217 A/R Port of Port Angeles 2,500.00 1225 A/R Forks 1,125.00 1228 A/R Wash State University NxLevel 38.00 1230 USFS 5,063.67 1250 A/R PDA Planning 2,041.67 1260 Data Books 16.19 1270 Memberships 445.00 1275 Trade Shows 1,275.19 1290 A/R Due (to) from FTC 12.000.00 Total Accounts Receivable 32.504.72 Total Current Assets 200,664.01 Fixed Assets 1350 Equipment 37,264.44 1351 Accumulated Deprec. 29.530.20 Total Fixed Assets 7,734.24 TOTAL ASSETS 208,398.25 1,649.26 21.65 181.80 4.76 1,857.47 209,148.99 Opening Balance Equity Retained Earnings Net Income Total Equity TOTAL LIABILITIES AND EQUITY 0.42 13,469.53 16.078.16 206,540.78 208,398.25 4/15198 Gross Profit Expense 6000 Personnel 6050 Communications 7000 Office Operation 7050 Trav/Train/Subscrp 8000 Program Expense Total Expense Net Income Clallam County EDC P L Budget Comparison January through March 1998 Jan Mar'98 Budget S Over Budget 51. of MEW Income 4000 Contracts 30,202.93 160,250.00 130,047.07 18.8% 5000 Earned Income 5,492.15 17,900.00 12,407.85 30.7% 5070 Other Income 3.922.17 Total Income 39.617.25 178.150,44 138.532.75 22.2% 39,617.25 178,150.00 138,532.75 22.2% 35,214.80 149,808.00 114,593.20 3,139.90 16,850.00 13,710.10 4,234.24 18,100.00 13,865.75 5,109.85 20,000.00 14,890.15 7.996.62 32.000.00 24.003.38 55.695.41 236.758.00 181.062.58 23.5% 18.6% 23.4% 25.5% 25.0% 35.6% 16.078.16 58.608.00 42.529.8I 27.4% Clallam County EDC P O Box 1085 102 E. Front St., Fl. 2 Port Angeles, WA 98362 BILL TO City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 2nd Quarter Services 1998 DESCRIPTION Make all checks payable to: Clallam County EDC For questions regarding this invoice, call Katy Stansifer (360) 457 -7793. BUDGET CODE: 1t1.ggQ :dl' i n APP DATE INVOICE 6/30/98 20 Total Invoice TERMS Upon Receipt AMOUNT 6,250.00 I $6,250.00 07/06/98 Net Income Income 4000 Contracts 5000 Earned Income 5050 Program Revenue 5070 Other Income Total Income Gross Profit Expense 6000 Personnel 6050 Communications 7000 Office Operation 7050 Trav/Train /Subscrp 8000 Program Expense 9100 In -kind Donations Total Expense Clallam County EDC P &L Budget Comparison January through June 1998 Jan Jun '98 Budget Over Budget of Budget 69,596.12 160,250.00 90,653.88 43.4% 17,424.77 17,900.00 475.23 97.3% 211.08 4,766.41 91,998.38 178,150.00 86,151.62 51.6% 91,998.38 178,150.00 86,151.62 51.6% 71,112.33 149,808.00 78,695.67 47.5% 6,587.11 16,850.00 10,262.89 39.1% 7,077.32 18,100.00 11,022.68 39.1% 9,130.13 20,000.00 10,869.87 45 7% 16,865.08 32,000.00 15,134.92 52.7% 533.00 111,304.97 236,758.00 125,453.03 47.0% 19,306.59 58,608.00 39,301.41 32.9% Page 1 07/b6198 ASSETS Current Assets Checking/Savings 1000 Petty Cash 1010 EDC Savings 1020 EDC Checking 1040 CD FFS &L 349 1042 CD FFS &L 108 1043 MRA FFS &L 609 Total Checking/Savings Accounts Receivable 1215 A/R City of Port Angeles 1216 A/R PUD 1217 A/R Port of Port 1225 A/R Forks 1228 A/R Wash State University NxLeveL Total 1228 A/R Wash State University 1230 USFS 1250 A/R PDA Planning 1260 Data Books 1270 Memberships 1275 Trade Shows 1280 Miscellaneous 1290 A/R Due (to) from FTC Total Accounts Receivable Other Current Assets Prepaid Assets Total Other Current Assets Total Current Assets Fixed Assets 1350 Equipment 1351 Accumulated Deprec. Total Fixed Assets TOTAL ASSETS LIABILITIES EQUITY Liabilities Current Liabilities Accounts Payable 2000 Accounts Payable Total Accounts Payable Credit Cards U S Bank Total Credit Cards Other Current Liabilities Deferred Revenue Payroll Liabilities Sales Tax Payable Total Other Current Liabilities Total Current Liabilities Total Liabilities Equity 3900 Net Assets Opening Bal Equity Retained Earnings Net Income Total Equity TOTAL LIABILITIES EQUITY Clallam County EDC Balance Sheet As of June 30, 1998 Jun 30, '98 436.32 67,924.40 1,114.19 19,385.94 17,408.75 13,584.74 119,854.34 12,500.00 3,500.00 2,872.00 1,125.00 38.00 38.00 7,073.21 2,041.67 32.38 1,105.00 1,755.20 582.50 40,211.08 72,836.04 4,095.89 4,095.89 196,786.27 37,264.44 28,628.86 8,635.58 205,421.85 1,574.42 1,574 42 1,022.41 1,022.41 636.50 4,544.95 7.14 5,188.59 7,785.42 7,785 42 209,148.99 0.42 7,793.61 19,306.59 197,636.43 205,421.85 From Katy Stansifer To Jack Piths Memorandum Date 5/21/98 lime 6 49 20 PM To: Board of Directors; Membership; Stakeholders From: Bart Phillips 4.- Date: 05/21/98 Re: May, 1998 Management Report Clallam County Economic Development Council Recruitment Activity The Council responded to three company inquiries during the month and closed one active case. Proposals were prepared for a national service business and two manufacturing operations. The clients will all short -list sites over the next month. A call center that had short- listed Clallam County is no longer considering sites in Washington State. The firm, which operates a multi million dollar retail catalog operation, found that the impact of the state's Business and Occupation Tax on retail businesses made operating a call center in Washington financially prohibitive. The upside is that we now have an informational relationship with a national site location consulting firm and it is aware of our call center interest. Issues concerning the B 0 impact have been forwarded to state officials. Building Marketing Underway The Port and Council have agreed on a marketing approach for the new multi- tenant manufacturing facility at Fairchild Industrial Park. Display advertising will appear in the Puget Sound Business Journal and local publications starting May 29. Contact will be made within the local real estate industry to gain access to regional networks. Direct mail will be used for past Council and Port leads. The final component is direct calls on past relocated businesses to develop referrals. The Council is coordinating marketing. The building is planned to be completed in late fall of 1998. Council/ PDA Invited to Submit Funding Proposal The Peninsula Development Association and Council have been invited to submit a $50,000 proposal to the Economic Development Administration for planning capacity support. The grant, through the President's Timber Initiative, would provide staff support for projects such as the community planning projects in Clallam Bay and industrial recruitment. The PDA and Page 1 of 2 5.1 From Katy Stansifer To Jack Pittis Date 5121198 Time 6 49 20 PM Page 2 of 2 Council had previously received this support during 1994 -1997. This year, in its absence, the Council budgeted a significant deficit for 1998. Success of our application will eliminate the deficit and allow us to expand our marketing and recruitment programs. Clallam County Goes to Governor's Timber Symposium Assistant Director Marny Hannan and County Administrator Jim Rumpeltes will be supporting the community of Clallam Bay as they attend the Governor's Timber and Salmon Symposium June 1 -3 in Ellensburg. The team, which includes Chris Mohr, Gene Laes, Kathy Shingleton and Patrick Marin, will be developing their proposal to renovate the Sekiu Community Center. This intensive process is the same used by the Port of Port Angeles, City of Port Angeles and Council to develop funding for the Valley Creek Estuary development. May 21, 1998 Sekiu Community Center Data Book Goes to Press The 1998 edition of the Clallam County Date Book will be available June 1 to the Council's membership and sale to the public. Editor Katy Stansifer has fully updated the demographic profiles and 50 data sets of this acclaimed publication. The profits from the sale of the document allow free distribution to Council members. Governor's Rural Economic Development Summit I have been asked to participate in the second Rural Economic Summit to be held in Moses Lake on June 24. The purpose of the summit is to build on the Port Angeles conference and develop a consensus rural development strategy. The format for this meeting is radically different. Issue papers on subjects raised in Port Angeles are being developed and will be the focus of breakout sessions during the meeting. I will be participating in the group focused on rural business recruitment. The goal of the meeting is to develop a series of initiatives that can be addressed during the upcoming legislative session. Meeting of Elected Officials a Success The Council hosted a meeting of elected officials from throughout Clallam County in May to discus cooperation in economic development. The discussion was lively and the outcomes positive. The most frequent comment was that it was useful for elected officials to gather to be able to discuss issues of mutual concern. The second most frequent comment was that meetings of this type are far too infrequent. The outcomes were two -fold. First, the Council was directed to prepare a comparison of economic development objectives established by the various jurisdictions accompanied by an analysis of land use designations for industrial development. Second, the group established a meeting in July to continue the discussion. 2 March 4, 1998 Ms. Becky Upton City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 Dear Becky: CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL Attached are two original signed contracts between the Council and the City of Port Angeles. Please return one original copy when signed. Feel free to call if you have questions. Sincerely, Katy Stansifer Administrative Assistant Enclosures: 2 102 E FRONT P 0 BOX 1085 PORT ANGELES, WA 98362 -0204 PHONE 360 457 7793 FAX 360 452 9618 INTERNET ccedc @clallam org 5. 134' a AGREEMENT THIS AGREEMENT is entered into this day of ikIALL 1998, by and between the City of Port Angeles, Washington, a municipal corporation, hereinafter called "City and the Clallam County Economic Development Council, Inc., a non profit corpora- tion, hereinafter called "Contractor WHEREAS, the City is a municipal corporation of the State of Washington authorized to contract for economic development services; and WHEREAS, it is in the public interest for economic develop- ment activities to be performed that will enhance the economy and employment opportunities in the City of Port Angeles; 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 above representations and the mutual covenants and agreements herein, it is agreed by the parties as follows: 1. Performance by Contractor. A. The Contractor shall use its capabilities to promote and enhance economic development and employment opportunities in the City of Port Angeles in accordance with the goals established by the Contractor's Board of Directors as set forth in the attached Exhibit "A B. The Contractor shall continue to use its resources to jointly market the facilities and capabilities of the 1 5. /3Cvc City to new and existing businesses with the goals of increasing City revenues and general employment opportunities for City residents. C. The Contractor shall use its capabilities to continue and up- date the ongoing performance of the following specific services as necessary: (1) Maintain and up -date a survey of industrial growth within the actual and potential areas served by the City, and the attributes and deficiencies of those areas for economic and industrial growth. (2) Maintain and up -date listings of available industrial sites for new or expanded industry which are, or may be, served by the City, including appropriate economic information for those industrial sites. D. All of the information developed by the Contractor for the City pursuant to paragraph 1(A) may be incorporated into a "guidebook" or an "overall economic development plan" involving other governmental entities and private businesses, so long as the information pertinent to the City is available and identifiable within those publications, for use by the City. E. The Contractor shall serve as a general research and reference service for officers and employees of the City, and in this capacity shall perform such functions as participating in the process of responding to inquiries from new industries or other commercial ventures which seek information concerning the facilities and resources managed by the City. F. The Contractor shall, upon request, consult with and assist the City at reasonable times and in a reasonable manner, in the development and execution of programs aimed at better planning, utilization, promotion, and advertisement of community services, facilities and, if applicable, utilities. G. The Contractor shall assist the City in applying for and administering economic development and related grants, including downtown low interest loan program. H. The Contractor shall maintain records and report to the City 2 as follows: (1) The Contractor shall maintain accounts and records which accurately reflect the revenues and costs for the Contractor's activities under this Contract. These financial records, and all records related to the performance of this Contract, shall be available for City inspection. (2) The Contractor shall provide the City with quar- terly reports fully describing what work has been performed pursuant to this Contract, and including a current statement of revenues and costs. (3) The Contractor 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. (4) The Contractor shall provide the City with an annual budget, including current salaries and benefits for all employees and classifications of employees and shall notify the City within 30 days of any increases in salaries or benefits from the previous year. 2. Performance by the City. A. For the services rendered by the Contractor, the City will provide, by payment in cash, the amount of Twenty -Five Thousand Dollars ($25,000.00), and, by in kind telephone services, an amount not to exceed Two Thousand Five Hundred Dollars ($2,500.00). B. Payment by the City shall be due upon receipt and acceptance by the City Manager of the Contractor's quarterly report as required under Paragraph 1(H) of this Contract. The Contractor will invoice the City for all quarterly payments. 3. Term. This agreement shall be for a term of one year, commencing on January 1, 1998. 4. Assignment. This agreement may not be assigned by either party to this agreement except by signed amendment. 5. Breach. A. In the event of either party's material breach of the terms or conditions of this Contract, the non breaching party reserves the right to withhold payments or services until corrective action has been taken or completed. However, the party shall not exercise this right until they have given written notice of such material breach to the breaching party and ten days have passed since the receipt of such notice. This option is in addition to and not in lieu of the parties' right to termi- nate this Contract or any other right which State law offers for breach of contract. B. If either party shall materially breach any of the covenants undertaken herein or any of the duties imposed upon it by this Contract, such material breach shall entitle the other party to terminate this Contract, provided that the party desiring to terminate for such cause shall give the offending party at least twenty days' written notice, specifying the particulars wherein it is claimed that there has been a violation hereof, and if at the end of such time, the party notified has not removed the cause of complaint, or remedied the purported violation, then the termination of this Contract shall be deemed complete. 6. Non Discrimination. The Contractor shall conduct its business in a manner which assures fair, equal and non- discriminatory treatment of all persons, without respect to race, creed or national origin, and, in particular: A. The Contractor shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity /affirmative action requirements; and, B. The Contractor shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non- discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran's status, disabled veteran condition, physical or mental handicap, or national origin. 4 protect, defend, save harmless, and indemnify the City, its officers, claims, damages, losses, and expenses, including reasonable attorney's fees, occurring, arising, or resulting from supplying work, services, materials, or supplies in connection with the performance of this Contract. 8. Entire Contract. The parties agree that this Contract is the complete expression of the terms hereto and any oral repre- sentation or understanding not incorporated herein is excluded. Further, any modification of this Contract shall be in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereto caused this Contract to be executed the day and year first hereinabove written. CITY OF PORT ANGELES By: 0 1. Mayo Gary Braun ATTEST: APPRO 7. Hold Harmless and Indemnification. The Contractor shall agents, and employees from and against any and all Up on, C ty Clerk D AS TO FORM: Craig D. Knutson, City Attorney 5 CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL, INC. President Vice Preside AGMT.EDC .02/ TUE 09:52 FAX 360 452 9618 CLALLAM Cu EDC 1998 Work Program BUSINESS RECRUITMENT CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL The mission of the Council is to create family wage income jobs and business investment for the benefit of Clallam County residents. The Council accomplishes this mission through activities that recruit new businesses, expand and retain existing businesses and other actions that promote development and diversification of the local economy. The work program specifies the Council's activities for calendar year 1998. It builds on the Council's on -going programs considering input from the Council's membership, contractors and customers. The Council will continue aggressive targeted recruitment focused on manufacturing industries that create family wage income jobs. Targeted sectors include wood products. marine trades, expanding technology industries (e.g., telecommunications and electronics) and other opportunities. The goal of business recruitment is to create an average of 50 new manufacturing jobs each year over a ten -year period. Business recruitment will be conducted in cooperation the Port of Port Angeles, its contract customers and local governments The Council will prepare and implement a marketing program identifying targeted sectors, marketing methods, respective responsibilities and budgets. The Council's Web site will be continually upgraded to serve as a marketing tool for industrial recruitment. The Council will actively market the Port of Port Angeles's new spec building at the Airport Industrial Park. The Council will prepare and disseminate a monthly marketing report to its customers. Z002 02/24/98 TUE 09:52 FAX 360 352 9618 CLALLAM CO EDC 0 003 BUSINESS ASSISTANCE AND BUSINESS RETENTION BUSINESS RETENTION AND EXPANSION The goal is to establish and enhance working relationships with existing businesses to assist them with expansion needs and help maintain businesses and employment Also, the Council will provide new and existing businesses with access to business counseling and financing resources to expand and maintain operations The objective is to improve the business climate and demonstrate commitment to existing businesses. The Council will rely on its partnerships with the Washington State Small Business Assistance Center and Service Corp of Retired Executive (SCORE) to provide direct services The objective is to create over $1 5 million in new investment in land buildings and equipment. Continue 112 time administrative support of the Business Development Specialist and SCORE counselors. Complete recruitment of new Port Angeles based SCORE counselor. Continue marketing program for the SBDC and SCORE services. Institute a calling program directed at targeted manufacturing and large service businesses. Y Conduct one -to -one and group meetings meeting to discuss services of the Council, needs of company and possible solutions to problems Market the services of the Council. d Provide access to business counseling utilizing the SBDC. Market the availability of financing resources for expansion or retention needs. Study the capitalization of a revolving loan fund using the relending programs of the Rural Development Administration (RDA). The focus of the fund would be major loans to existing businesses that create new employment. Develop a local revolving loan fund for infrastructure investment as authorized by SB 4750. .02/24/08 VD TUE 9: f52 FAX 360 452 9618 1lL OTHER ACTIVITIES CLALLAM CO EDC Z004 The Council must continue to develop and evolve to meet the changing economic and business environment of the community and the needs of its customers. Two -way communications is imperative. Feedback from its customers must be continual Marketing of the Council's accomplishments should be on going. The Council should define its achievements in terms of the economic development benefits to the community (jobs: tax base; wages: etc.) Continue to publish the Clallam County Data Book. Conduct on -going Board education on economic development best practices_ Continue to invest in office technology to enhance office efficiency and to support advanced marketing research and recruitment Work with other community based organizations to define the Council's roles and responsibilities for economic development. Support continuing education for Council staff to enhance economic development skills. .02/24/98 TUE 11:5u FAX 360 452 9613 CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL 1998 Budget Without EDA SUES Unrestricted Reserves Available for Operations 111,119 78,238 42% Contracts Total Contracts 160,250 214,250 25% Earned Income Total Earned income Program Revenue Total Program Revenue Other income Total Other Income TOTAL AVAILABLE CASH EXPENSES Personnel: Total Personnel 149,808 148,855 1% Communications: Total Communications Office Operation: Total Office Operations Travel/Training /Subscriptions: Total Travel/ Training/ Subscriptions CLALLAM CO EDC Z002 1998 1997 Variance I Adopted Adopted 17,900 14,000 28% >c<i;,,rasa 245 000 -100% 2,000 2,000 0% 180,150 472.250 -62% 1998 1997 Variance Adopted Adopted i 16,850 12,950 30% 18,100 21,600 -16% 20,000 14,500 38% Program Expense Total Program Expense 32,000 280,800 «89% 4)2/24/98 TUE 11:51 FAX 360 452 9618 Contingency (10% of operations) TOTAL DISBURSEMENTS Ending Cash Available for Operations Net Increase (Decrease) in Cash 1998 RESERVE CALCULATION Monthly Average Operating Cost Personnel less Contingency Communications Office Operations less Professional Services Travel Total Monthly Operations Reserves at 6 months Operations Projected Cash on Hand 12/31/97 Less Reserves Unrestricted Reserves Projected Ending Unrestricted Reserves CLALLAM CO EDC 245.453 487.100 -50% 45,816 63,298 -28% 5 -14,940 337% 1998 1997 Variance Adopted Adopted 11,417 1,196 1,092 1,667 1 5,372 92,229 203,348 92,229 111 ,119 i nc ,HTM 8,695 8,485 2% 11,277 1% 871 37% 1,383 -21% 1,208 38% 14,739 4% 88,434 4% 166,672 22% 88,434 4% 78,238 42% l003 1998 Work Program 'N BUSINESS RECRUITMENT CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL The mission of the Council is to create family wage income jobs and business investment for the benefit of Clallam County residents. The Council accomplishes this mission through activities that recruit new businesses, expand and retain existing businesses and other actions that promote development and diversification of the local economy. The work program specifies the Council's activities for calendar year 1998. It builds on the Council's on -going programs considering input from the Council's membership, contractors and customers. The Council will continue aggressive targeted recruitment focused on manufacturing industries that create family wage income jobs. Targeted sectors include wood products, marine trades, expanding technology industries (e.g., telecommunications and electronics) and other opportunities. The goal of business recruitment is to create an average of 50 new manufacturing jobs each year over a ten -year period. Business recruitment will be conducted in cooperation the Port of Port Angeles, its contract customers and local governments The Council will prepare and implement a marketing program identifying targeted sectors, marketing methods, respective responsibilities and budgets. The Council's Web site will be continually upgraded to serve as a marketing tool for industrial recruitment The Council will actively market the Port of Port Angeles's new spec building at the Airport Industrial Park The Council will prepare and disseminate a monthly marketing report to its customers. Exhibit "A" BUSINESS ASSISTANCE AND BUSINESS RETENTION BUSINESS RETENTION AND EXPANSION The goal is to establish and enhance working relationships with existing businesses to assist them with expansion needs and help maintain businesses and employment. Also, the Council will provide new and existing businesses with access to business counseling and financing resources to expand and maintain operations The objective is to improve the business climate and demonstrate commitment to existing businesses. The Council will rely on its partnerships with the Washington State Small Business Assistance Center and Service Corp of Retired Executive (SCORE) to provide direct services The objective is to create over $1 5 million in new investment in land buildings and equipment. Continue 1/2 time administrative support of the Business Development Specialist and SCORE counselors. Complete recruitment of new Port Angeles based SCORE counselor. Continue marketing program for the SBDC and SCORE services. Institute a calling program directed at targeted manufacturing and large service businesses. Conduct one -to -one and group meetings meeting to discuss services of the Council, needs of company and possible solutions to problems Market the services of the Council. Provide access to business counseling utilizing the SBDC. Market the availability of financing resources for expansion or retention needs. Study the capitalization of a revolving loan fund using the relending programs of the Rural Development Administration (RDA). The focus of the fund would be major loans to existing businesses that create new employment. Develop a local revolving loan fund for infrastructure investment as authorized by SB 4750. OTHER ACTIVITIES The Council must continue to develop and evolve to meet the changing economic and business environment of the community and the needs of its customers. Two -way communications is imperative. Feedback from its customers must be continual Marketing of the Council's accomplishments should be on going. The Council should define its achievements in terms of the economic development benefits to the community (jobs; tax base; wages; etc.) Continue to publish the Claliam County Data Book. Conduct on -going Board education on economic development best practices. Continue to invest in office technology to enhance office efficiency and to support advanced marketing research and recruitment. fork with other community based organizations to define the Councii's roles and responsibilities for economic development. Support continuing education for Council staff to enhance economic development skills. CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL 1998 Budget Without EDA REVENUES Unrestricted Reserves Available for Operations 111,119 78,238 42% Contracts Total Contracts 160,250 214,250 -25% Earned Income Total Earned Income Program Revenue Total Program Revenue Other Income Total Other Income TOTAL AVAILABLE CASH EXPENSES Personnel: Total Personnel Communications: Total Communications Office Operation! Total Office Operations TraveilTraining Subscriptions: Total Travel/ Training/ Subscriptions i 1998 1997 I Adopted Adopted 17,900 14,000 28% V aria n ce 245,000 -100% 2,000 2,000 0% 180.150 472.250 -62% 1998 1° °7 i Variance i Adopted Adopted j 149,808 148,855 1% 16,850 12,950 30% 18,100 21,600 -16% 20,000 14,500 38% Program Expense Total Program Expense 32,000 280,800 -89% Contingency (10% of operations) 8,695 8,485 2% TOTAL DISBURSEMENTS Ending Cash Available for Operations Net Increase (Decrease) in Cash 1998 RESERVE CALCULATION Monthly Average Operating Cost Personnel less Contingency Communications Office Operations less Professional Services Travel Total Monthly Operations Reserves at 6 months Operations Projected Cash on Hand 12/31/97 Less Reserves Unrestricted Reserves Projected Ending Unrestricted Reserves 245.453 487.190 -50% 45,816 63,298 -28% 14,940 337% 1998 1997 Variance Adopted Adopted 11,417 11,277 1% 1.196 871 37% 1,092 1,383 -21% 1,667 1,208 38% 15,372 14,739 4% 92,229 88,434 4% 203,348 166,672 22% 92,229 88,434 4% 111,119 78,238 42% :#A, Clallam County EDC P OBox 1085 Port Angeles WA 98362 BILL TO City of Port Angeles P.O. Box 1150 1 Port Angeles, WA 98362 4th Quarter Services DESCRIPTION Make all checks payable to: Clallam County EDC For questions regarding this invoice, call Katy Stansifer (360) 457 -7793. t Total Invoice DATE INVOICE 12/31/97 14 TERMS Upon Receipt AMOUNT 5,625.00 $5,625.00 C a am County EDC December Management Report To: Board of Directors, Members, and Stakeholders From: Bart Phillips Date: 01/08/98 Michael Parks Keynotes Annual Meeting Michael Parks, editor of Marples Business Letter will provide the 1998 Economic Forecast at the Council's Annual Meeting, 5:30 PM, Wednesday, January 28` at Haguewoods in Port Angeles. Marples has been an authoritative source of regional business trends, company news and stock analysis for many years. Parks will provide an economic review for 1997 and make his predictions for 1998 including comments on the disparities of rural and urban economies. Mark you calendars now for what should be a thought provoking evening. Council Testifies on Need for Rural Economic Programs I along with four of my counterparts testified before the House Trade and Economic Development Committee concerning the need for new rural business incentives. The testimony coincided with a briefing by the Governor's staff on an upcoming package that will provide new incentives for projects of regional significance. EDC's testimony focused on three areas of need: tax incentives to level the competitive playing field between urban business locations and those in other states; rural business relocation marketing; additional infrastructure financing; and, workforce training and readiness programs. All these elements were addressed at the recent Port Angeles Rural Economic Summit. The Governor's package will be released in mid December. It is the direct response to issues raised at the Summit. The Council will work diligently with the Governor's Office, the Department of Trade and other EDC's to see that meaningful rural economic development programs are passed. The Truth Behind Nike You may have read a recent article in the Peninsula Daily News concerning Clallam County not being considered for the potential expansion of Nike to Washington State. The fact is we were never among the short listed sites, nor could we have been. We simply did not have the site location requirements sought by the company (5,000+ acre fully served campus; 45 minute drive time to Seattle- Tacoma Airport). Without going into detail concerning this particular investment case, I would like to take this opportunity to clarify how we approach a response to an investment lead. First, and maybe most importantly, all investment leads are held in the' strictest of confidence, usually at the behest of the Clallam County Economic,Development Council; 102 East Front Street/ PO Box 1085; Port Angeles, Washington 98362 Phone 360.457.7793 Fax 360.452.9618 E -mail ccedcaclallam orb Web www clallam.org client (in the Nike case, we did not know the company's identity until after the short-list was released). Second, we consider the site location requirements as literally stated. Location requirements are usually essential to a company's success. The right company in a wrong location could doom the investment to failure. January 8, 1998 Finally, the Council looks carefully at its target market list when responding to a potential lead. This list was developed because we believe we need companies that will help diversify the local economy and have certain employment attributes. While we do not deny service to a company, we focus on those firms that have specific characteristics. Please view with skepticism any comments you may hear that tell of the Council "not wanting" a certain business. That is not the case. The opportunity for success is never greater that when we receive an unsolicited lead. Moreover, we never work harder. Such negative comments usually have their source from those uninformed of our efforts or unfamiliar with the process of industrial recruitment. Valley Creek Wins Statewide Economic Development Award The Washington Community Economic Revitalization Team (WACERT) recognized the Valley Creek Estuary/ K -Ply Expansion project as its Project of the Year. Valley Creek was selected from all projects funded in 1997 through the Presidents Forest Initiative in Washington State. The project was singled out due to the unique cooperation of the City of Port Angeles, Port of Port Angeles and Soroptomists International in funding the project, unheard of public support and the project's overall impact on job creation and downtown revitalization. The project demonstrates the power of teamwork between the Port, City, service clubs and economic development interests. The Council played a leadership role in developing the project's concept and developing public awareness of the project. However, if one party was absent in process, the project would have remained a dream. The community should take a bow. Fleener Joins Oregon Economic Development Efforts Forks Economic Development Steering Committee Director and Council Board Member Darrin Fleener has accepted a position with the state of Oregon as a regional economic development coordinator. He will be leaving his position on December 19` for his new post in Salem, Oregon. Darrin started his economic development career at the Council as an intern three years ago and served at FEDSEC for two years. In his capacity, he furthered the development of the Forks Industrial Park including the location of the Forestry Training Center. He served as an able advocate of economic development in timber impacted areas of Washington. We wish him well in his new position. New Projects Submitted to WACERT The Council completed preparation of new business and infrastructure projects for consideration of funding through the President's timber initiative. Assistant Director Marny Hannan worked through a prioritization process with local municipalities, Peninsula College and others to prepare the list of 14 projects. Unique to this year's effort was the inclusion of three projects from Clallam Bay. Clallam County worked with the community to develop the projects that include repair of the Community Center, improvements to Clallam Bay Spit Park and construction of the Neah Bay -Ozette Loop Road. Preparation and submission of the list is the first step for funding, such as was realized for the Forestry Training Center, Valley Creek Estuary and Admiral Marine projects. 2 A January 8, 1998 Recruitment News The Council prepared four detailed proposals for manufacturers investigating potential expansions or locations. The Port Angeles Chamber of Commerce developed two of these leads. Crown Pacific's new Port Angeles mill is well underway. The structural steel for the main building is up and the facility will be dried in by the end of the year. Completion of the facility is slated for mid 1998. The Council will be attending the 1998 IBEX Marine Trades Show in Fort Lauderdale in February. This will be our second year at the show. Cooping with Skagit County and the Port of Olympia has reduced costs for participation. Sequim Community Development Marny Hannan has continued to work with the Sequim Economic Development Committee in the production of a ten -page profile of Sequim and the Sequim- Dungeness Valley. The piece describes economic and quality of life attributes. It will be used for business recruitment and relocation programs by the City of Sequim and Chamber of Commerce. The Committee will be instituting a business retention program aimed at involving Chamber representatives and members of the business community. The goal of the program is to encourage local businesses and industries to remain and to continue to grow to provide jobs and wealth for the community. Marny will be providing support for this project as well as continuing to be involved with the Committee's other activities. Business Assistance Kathleen Purdy, Small Business Development Specialist, counseled nineteen clients during the month of November. Of those, seven were new and twelve were previous clients. Kathleen has been awarded her certification as an Economic Development Finance Professional from the National Development Council. Certification signifies successful completion of four weeks of intensive training in community development, business and real estate finance. Certification includes comprehensive examinations on each subject area including application of finance principles to real world business development cases. 3 Clallam County EDC 01/08/98 P &L Budget Comparison January 1 through December 1, 1997 Income 4000 Contracts 5000 Earned Income 5050 Program Revenue 5070 Other Income Total Income Expense 6000 Personnel 6050 Communications 7000 Office Operation 7050 Trav/Train /Subscrp 8000 Program Expense 9000 Contingency Uncategorized Expenses Total Expense Net Income Jan 1 Dec 1, '97 Budget Over Budget of Budget 181,904 60 21,824 04 411,576 32 7,179 31 622,484 27 123,448 38 12,186 67 26,199 87 15,153 69 449,850 84 0 00 250 00 627,089 45 4,605.18 225,500 00 43,595 40 80 7% 14,000 00 7,824 04 155 9% 245,000 00 166,576 32 168 0% 68,500 00 61,320 69 10 5% 553,000 00 69,484 27 112.6% 148,855 00 25,406 62 82 9% 12,950 00 -763 33 94 1% 30,200 00 -4,000 13 86 8% 14,500 00 653 69 104 5% 355,800 00 94,050 84 126 4% 8,485 00 -8,485 00 0 0% 570,790 00 56,299 45 109 9% 17,790.00 13,184.82 25.9% Page 1 CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL Memorandum To: Dave Hagiwara, Port of Port Angeles Jeff Pomeranz; City of Port Angeles Tom Lawell; City of Sequim Dan Leinan; City of Forks Jim Rumpeltes; Clallam County CC: Board of Directors From: Bart Phillips Date: 10/22/97 Re: October Recruitment Report The Council has assisted a small manufacturer locate to Sequim. A real estate agent called searching for an existing facility for a client. Marny Hannan identified a facility from our database and the deal was done. The company is a small manufacturer of oceanographic research tools and supplier of underwater video services. A subsequent meeting with the client indicates he has an extremely successful entrepreneurial track record. They currently employ four with plans to expand to 10. We are providing continuing support with tax abatement. Crown Pacific has broken ground for their $15 million dimensional mill outside Port Angeles. Construction should be completed and the mill operational 3rd quarter 98. Two leads developed out of our attendance at the Anaheim WoodWorking Exposition Both are furniture manufacturers Both are considering Washington relocation. One firm is motivated to move closer to its suppliers and export location. The attached lead list has been purged of leads that were dosed last month. Additional leads have been cloccd this month where the client has expressed no interest in further contact or where follow -up attempts have failed. 102 E FRONT P 0 BOX 1085 PORT ANGELES, WA 98362 -0204 PHONE 360 457 7793 FAX 360 452 9618 INTERNET. ccedc @olympus net 5./ RECEIVED OCT 2 3 1997 City of Port Angeles 6 Northern Exposure 8 1 Fishing Buddy 4- 91Southcrn Comfort 1-41 Nor#tb Northwest 12 1 Frequent Fliers (60) 131Silicon Solutions 14 Big Bopper 16 Proton 17 Shooting Star 20 Boomer 21 Envy 22 H K 23 3 Devil May Care 4 Chips Ahoy 5 Gusher Foil 25 Log Home 27 Furniture 28 Outdoor Furniture 29 Deep Diver 30 Polycrystalline Silicon marine trades marine trades pumps wood products 1sporting goods 1mannc tradco °r^ 1various electronics wood products electronics wood products manufacturing wood products wood products electronics furniture furniture Silicon Wafers Marny Hannan Super Yacht Dave HagiwaralPort Darren Fleener Bart Phillips Bart Phdttps Bart- P- hrtlrps Bart Phillips Peter McMillin Bart Phillips Bart Phillips Bart Phillips Bart Phillips call Bart Phillips 1Call Bart Phillips call Call WEB Al Angrignon Peter McMillin DCTED manufactured housing Marny Hannan call Scientific Instruments Marny Hannan referral Bart Phillips DCTED Client Report for October 1997 Marketing and Prospect Report Industry Sector Source Status Case Name First Contact Contact. Action Type', Action Hold Dave Hagiwara Call/ Super Yacht Hold Forks 1Rec Advertising Rcc Advcrticing Res-AdveFtising Alaska Advertising DCTED Active Hold Active dosed dosed Active closed Construction Hold Hold Active New Active Active 13art Phillips Anaheim Show Active Bart Phillips Anaheim Show Active Active Page 1 Nov -96 Apr -97 hold hold Nov -96 Jun -97 hold follow -up call Dec -96 Jun -97 undet follow -up call Dec -96 Jan -97 Jan-97 Jan 97 Jan -97 Feb -97 Mar -97 Mar -97 Mar -97 Jan -97 Apr -97 Jul 07 Apr 07 Mar -97 Aug -97 Sep -97 Jul -97 Apr -97 hold drop -by -visit May- 971Client will call J le nail contact Oct 071 mail contact NA (various Oct- 971follow -up call Oct -97 continual follow Oct-97 follow -up mail Dec -97 mail contact Mar -97 Oct -97 Oct -97 meeting Apr -97 Sep -97 Oct- 971support hold May -97 Oct -97 Dec -97 call May -97 Oct -97 Nov -97 follow -up call Jun -97 Aug -97 Aug -97 Aug -97 Oct -97 Oct -97 Oct -97 follow -up call Oct -97 follow -up call Oct -97 follow -up call Sep -97 Oct -97 Oct -97 tax support closed Aug -97 Oct -97 Nov -97 follow -up call difficulty arranging site visit had contact with sales rep, company developing military sales in Puget Sound Port has lead responsibility company still involved with Mason County expansion one prospect developed Clallam County not short listed clearing and grading started, septic sized for 100 employees( sized at 45mmbf client failed to establish second site visit client out of country, no response to fax company reconfirmed interest in relocating, pitched Port Multitenent building company moving slowly with plans prepared full proposal, company still evaluating financing options prepared second proposal, site location being handled by CH2MHdl subsidiary looking to develop existing owned site, put in contact with J and J and Curtley Cole seems to be small firm lifestyle relocation 7 requires cedar dimensional, currently ships from Canada, exports Seattle successful case, 4 employees to start, located building at Carlsborg, assistance with tax rebates, seems to be good potential for growth shortlisted Kitsap and Whatcom counties, DCTED will revisit Clallam location with consultant Clallam County EDC P 0 Box 1085 DATE INVOICE Port Angeles WA 98362 BILL TO City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 3rd Quarter Services 1997 For questions regarding this invoice, call Katy Stansifer (360) 457 -7793. DESCRIPTION Make all checks payable to: Clallam County EDC j22La BUDGET CODE: ll l, 'vt) I J.'! ._l A 9/30/97 11 Invoice TERMS Upon Receipt AMOUNT 5,625.00 Total $5,625 00 CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL Memorandum To: City of Port Angeles CC: Board of Directors; Council Membership From: Bart Phillips, Executive Director Date: 10/16/97 Re: Third Quarter Report C3i,F 2 1997 Cl,Lp 0 wort Angeles The following is a synopsis of results and activities for the quarter ending September 30, 1997. Business Recruitment Anaheim Woodworking Exposition. The Council in partnership with three other economic development organizations and the state of Washington participated in the biennial Anaheim WoodWorking Exposition. The show was targeted at cabinetry and other value added wood products companies. Over 183 qualified leads were generated including 10 that were actively looking at an expansion or relocation to the state of Washington. The Council has followed up on all leads and confirmed continuing interest by two firms. Crown Pacific Mill. The Council continues to provide permit coordination services to Crown Pacific Partners with the development of their $15 million small log mill outside of Port Angeles. Specifically, the Council coordinated pre permit meetings with County building officials and the Dry Creek Water District. Construction will start in October 1997 with the mill operational in the third quarter of 1998. The mill will employ 50. Business Recruitment Breakfasts. The Council held three breakfasts across the County to recruit private support of the Council's business recruitment marketing program. Over 100 people attended meetings in Sequim, Port Angeles and Forks. The meeting met their objectives of informing business leaders of the Council's programs and businesses support with developing recruitment. WEB Site Rebuild. While less than a year old, the Council completed a rebuild of its WEB site. The site is now oriented toward business recruitment. New features include the ability to download site maps and property descriptions as well as thirty data sets included in the Council's data book. The address of the site is www.clallam.org. 102 E FRONT P O BOX 1085 PORT ANGELES, WA 98362 -0204 PHONE 360 457 7793 FAX 360 452 9618 INTERNET ccedc @olympus net The Council has participated in two meeting of the new Clallam Bay/ Sekiu Community Council. The Council is prioritizing projects to be included in the Northwest Economic Development Initiative. Marketing Plan. The Council adopted a marketing plan for 1997 -1998. The plan identifies target markets and specifies marketing activities and marketing partners. A copy of the plan is appended to this report. Community Development. October 16, 1997 City of Forks The Council assisted the City with the development of building cost estimates for two expanding manufactures. Both seek locations in the Forks Industrial Park. The Council has also assisted with presentations before public funding sources and will continue to promote the project The Council is assisting two groups with planning economic development projects. Marny Harman is assisting the Sequim Economic Development Steering Committee with preparation of marketing materials to be included with the Council's recruitment packet Assistance is being provided to the Chamber with the preparation of a marketing and feasibility study for a small business incubator. Both of these projects should be completed during the fourth quarter. Economic Development Summit The Council assisted with the planning of the Governor's Economic Development Summit to be held in Port Angeles on November 5, 1997. Also participating from Clallam County were Port Angeles City Manager Jeff Pomeranz and Port of Port Angeles Executive Director Chris Anderson. Together we succeeded in focusing the summit on rural development and ensuring that local businesses were represented on the discussion panels. Forestry Training Center The Council engaged the services of Baker, Overby and Moore to complete a full audit of Council expenditures for the project over the last three years. This includes private, federal and state funds from the first feasibility study to construction of the FTC Training Center in Forks. The audit will be finalized during the Fourth quarter. The Council is completing transfer of financial and accounting responsibilities to the FTC. This includes contracting for the preparation of a quit claim deed for the building and capital equipment. The quit claim will be executed when the audit is completed. Business Assistance. SCORE Counselor Chuck Lamb met with 23 clients during the quarter providing them guidance with starting a business. SBDC During the Third Quarter, Kathleen Purdy, Small Business Development Specialist, counseled thirty different clients, many more than once. The financial investment in the County for the period was $307,500, $12,500 of which was through the Olympic Microloan Fund. Kathleen spoke to the Entrepreneurial Training Course at Peninsula College as well as attending a workshop on SBIR (Small Business Innovation Research) program and funding available to small business for research. Additionally, Kathleen has completed the fourth course in a 4- course series from the National Development Council leading to certification in economic development finance. 2 Draft For Discussion Purposes Only Last Revised 9/17/97 1 00 PM Clallam County EDC MARKETING /RECRUITMENT PLAN 1997 1998 This marketing plan concentrates on activities for 1997 -1998 It was developed on the results of the past year's marketing activities The Council's goal remains generating an average one recruitment lead per week and a success rate of four percent creating 50 jobs at a cost of less than $1,000 per job created The ten -year goal established in 1996 is to recruit an average of 50 jobs per year for the period (500 jobs) Primary recruitment efforts focus on attracting manufacturing companies with 25 -200 employees with high valued products sold nationally and /or internationally Our targets place high values on access to skilled and available labor at a competitive cost, low costs for land and facilities, rapid development periods and are attracted by the County's unique quality of life Marketing activities will be undertaken throughout the year The Council will manage recruitment efforts from development to execution to client contact Other agencies in the County will be called upon as needed to help answer questions and provide information to potential companies Recruitment will be monitored throughout the year to insure that the dollar investment made is warranted by the successes achieved Each activity will be reviewed and evaluated to determine whether similar future activities should be undertaken or if different paths should be explored to utilize the budgeted dollars more effectively Target Markets ,S::? :••;•iii: �f:% %if/. ':•.;:F %f� fW i Major Sector Food anal .Kindred Products {NO Lumber and WOttd Prti'dnet$ (24) ChenticalS and Allied.P.rodaetg (28) Malt €ttery, except electrical Instruments; and Related PrGduet» (l) Eleetrie and Electronic Equipment (36) 'i t ;,pt#rtatian Egdlpati t (37) Other loslus€rk Su hSt ctorf Chariteteridit specialty agncultural products processing engineered wood, specialty lumber, value added secondary processing high water dependent industry, energy dependent industries wood products and wood working medical equipment manufacturing and assembly telecommunications and electronics assembly, silicon wafer manufactunng, manne trades, aerospace subcontractors call centers Marketing Activities The marketing and recruitment effort to be undertaken by the Council will consist of several elements Draft For Discussion Purposes Only Last Revised 9/17/97 1 00 PM The Council will participate in trade shows to generate awareness of Clallam County as a business location and to generate leads. Trade show participation will be in cooperation with the State of Washington, Port of Port Angeles, FEDSC and other EDCs. Cooperation will reduce overall participation costs as well as strengthening the Council's presentation. In addition, the Cow cil will coordinate trade shows with direct calls on pre quaiified companies with those shows conducted with other EDCs. Pre qualification will be accomplished through a joint telemarketing project funded by the EDCs. The Council will continue to expand its marketing materials to include specific private industrial parcels and buildings. The Council Web site will be revised to increase its value as a marketing tool. Description of available land and industrial buildings will be published. On -going recruitment activities that will continue throughout the year include follow -up on statewide leads and direct inquiries. This activity is essential to the success of the recruitment efforts undertaken because they are pre qualified as looking to expand or relocate and considering the State of Washington. In the fall of 1997 the Council will hold three breakfast presentations (Forks, Port Angeles, and Sequim) for business leaders and retired executives to recruit them as members of a lead generation team for the county. Staff believes that these individuals can serve as a cost effective lead generation tool. There is an added marketing/ public relations benefit for the Council's program. In spring 1998, the Council will direct an effort to reach decision- makers within Northwest value added forest products companies. The goal is to gain an audience to discuss expansion opportunities in Clallam County. Essential to the success of recruitment in Clallam County is the involvement of agencies other than the Council. The Council will be extending this message to various public and private sector entities asking them to participate actively in promoting awareness of the County. Marketing Budget The total cost of the marketing and recruitment plan for 1997 1998 will be approximately $19,000. In order for this amount to be used effectively (i.e. meet the objectives set in the plan), a total of 50 new jobs will need to be brought into the County as a result of marketing and recruitment efforts. ketir enerat [Op ;8irea ecl'ulfijient_ ctiv1 x„R,.Ais -r -i r_f .A ---0 8,000 2,000 3,000 4,000 2,000 $19,000 2 -Cla llam County EDC P O Box 1085 Port Angeles WA 98362 BILL TO City of Port Angeles P O Box 1150 Port Angeles, WA 98362 Services for 2nd Quarter 1997 DESCRIPTION Make all checks payable to: Clallam County EDC For questions regarding this invoice, call Katy Stansifer (360) 457 -7793. Total 5./3 Invoice DATE INVOICE 8/19/97 10 TERMS Upon Receipt AMOUNT 5,625 00 J $5,625.00 08/19/97 Income 4000 Contracts 4010 Clallam County 4015 City of Port Angeles 4020 City of PA In -Kind Contr 4025 City of Forks 4030 City of Sequim 4035 Port of Port Angeles 4040 Clallam County PUD 4045 WA WDN 4046 Marketing CTED 4047 WDN CH2MHill 4048 WDN Other Total 4000 Contracts 5000 Earned Income 5005 Memberships 5010 Data Book Sales Tax Collected 5010 Data Book Other 5015 Promotional Income Golf Tournament 5,862 50 Workshops 210 00 5015 Promotional Income Other 594 50 Total 5015 Promotional Income 5020 Interest Income Total 5000 Earned Income 27 74 473 69 5050 Program Revenue 5055 FTC Tuition 103,116 90 Total 5070 Other Income Uncategorized Income Total Income Jan 1 -Jul 1, '97 Budget Over Budget of Budget 5,724 41 4,702 83 25,876 88 12,000 00 11,250 00 885 67 2,317 50 2,916 67 15,000 00 4,083 34 Total 4045 WA WDN 36,304 12 55,000 00 18,695 88 66 0% 4050 PDA Planning 13,374 96 27,500 00 14,125 04 48 6% 4051 PDA NEAT 4051 PDA NEAT- Other 0 00 47,500 00 47,500 00 0 0% Total 4051 PDA NEAT 0 00 47,500 00 47,500 00 0 0% Total 5010 Data Book 501 43 5011 Business Plan Workbook Sales Tax Collected 1 56 5011 Business Plan Workbook Other 20 00 Total 5011 Business Plan Workbook 21 56 5077 In -kind Newspaper Ads 648 13 5080 Uncategorized Income 642 50 98,132 26 225,500 00 127,367 74 43 5% 7,090 00 7,500 00 -410 00 94 5% 6,667 00 5,000 00 1,667 00 2,434 06 1,500 00 934 06 16,714 05 14,000 00 2,714 05 5055 FTC Other 189,951 91 245,000 00 55,048 09 77 5% Total 5055 FTC 293,068 81 245,000 00 48,068 81 119 6% 5050 Program Revenue Other 11,967 54 Total 5050 Program Revenue 305,036 35 245,000 00 60,036 35 124 5% 5070 Other Income 5071 CH2MHill Study 3,426 48 65,000 00 61,573 52 5 3% 5075 SBDC Reimbursement 94 53 2,000 00 -1,905 47 4 7% 4,811 64 118 22 424,812 52 Clallam County EDC P&L Budget Comparison January 1 through July 1, 1997 25,000 00 10,000 00 20,000 00 24,000 00 22,500 00 2,500 00 4,500 00 5,000 00 30,000 00 7,000 00 -19,275 59 5,29717 5,876 88 12,000 00 11,250 00 -1,614 33 -2,182 50 -2,083 33 15,000 00 -2,916 66 22 9% 47 0% 129 4% 5,000 00 -4,405 50 11 9% 50 0% 50 0% 35 4% 51 5% 58 3% 50 0% 583% 133 3% 162 3% 119 4% 1,500 00 -857 50 42 8% 68,500 00 63,688 36 7 0% 553,000 00 128,187 48 76 8% Expense 6000 Personnel 6005 Empl Taxes 9,474 02 13,959 00 -4,484 98 67 9% Page 1 08/19/97 6010 Employ Health Ins 6015 Employ Salaries 6020 Incentive Bonus 6025 Pers Contingency (w /Tax) Total 6000 Personnel 6050 Communications 6055 Advertising 6060 Photocopies 6065 Postage /Freight 6067 Data Books 6068 Business Plan Books 6070 Telecommunications Basic Service City of PA In -Kind SCAN Basic Service Other Total Basic Service Cellular Computer Service Total 6070 Telecommunications Total 6050 Communications 2,517 39 57,630 32 0 00 2,485 26 Jan 1 -Jul 1,'97 Budget Over Budget of Budget 11 00 1,532 73 2,126 13 0 00 123 95 72,106 99 Clallam County EDC P &L Budget Comparison January 1 through July 1, 1997 885 67 1,250 00 1,143 64 2,000 00 2,029 31 3,250 00 489 74 391 91 2,910 96 6,704 77 600 00 600 00 6,000 00 115,360 00 2,000 00 11,536 00 2,500 00 2,000 00 3,000 00 1,000 00 148,855 00 -11026 -208 09 -3,482 61 57,729 68 -2,000 00 -9,050 74 -2,489 00 -467 27 -873 87 -1,000 00 -76,748 01 -364 33 70 9% -856 36 57 2% -1,220 69 62 4% 81 6% 65 3% 42 0% 50 0% 0 0% 21 5% 0 4% 76 6% 70 9% 0 0% 4,450 00 -1,539 04 65 4% 48 4% 12,950 00 -6,245 23 51 8% 7000 Office Operation 7005 Audit/Tax Prep 0 00 1,000 00 -1,000 00 0 0% 7010 Fees /Payroll Service 808 48 2,000 00 -1,191 52 40 4% 7015 Professional Services 3,626 35 2,500 00 1,126 35 145 1% 7020 Insurance 2,035 00 2,100 00 -65 00 96 9% 7025 Office Equipment 801 36 1,500 00 -698 64 53 4% 7030 Equip Repr Maint 1,807 33 2,500 00 -692 67 72 3% 7035 Office Supplies 3,320 75 10,000 00 -6,679 25 33 2% Total 7000 Office Operation 12,399 27 21,600 00 9,200 73 57 4% 7050 Trav/TramlSubscrp 7055 Conferences/Training 2,163 38 2,000 00 163 38 108 2% 7058 Travel /Business Recruit 4,970 48 10,000 00 -5,029 52 49 7% 7060 Dues /Sbscriptions 841 33 1,000 00 -158 67 84 1% 7065 Members /Comm Outreach 0 00 1,500 00 -1,500 00 0 0% 7070 Travel 7071 SBDC Travel 366 51 7070 Travel Other 1,063 77 Total 7070 Travel 1,430 28 7050 Trav/Train /Subscrp Other 209 93 Total 7050 TravlTrain /Subscrp 9,615 40 14,500 00 -4,884 60 66 3% 8000 Program Expense 8005 FTC 227,739 04 245,000 00 17,260 96 93 0% 8010 Business Recruitment 8015 Graphic /Print 197 10 8020 Travel 1,134 04 8010 Business Recruitment Other 0 00 7,000 00 -7,000 00 0 0% Total 8010 Business Recruitment 1,331 14 7,000 00 -5,668 86 19 0% 8030 Entrepreneurial Training 0 00 3,800 00 -3,800 00 0 0% 8035 Marketing Program 8036 Advertising 5,613 84 8037 Consulting 2,013 34 8038 Exhibit Space 1,419 24 8039 Graphic 1,392 51 8040 Mailing 1,398 82 8041 Phone 10 62 8045 Supplies 297 63 8046 Training 396 88 Page 2 08/1 9/97 8035 Marketing Program Other Total 8035 Marketing Program 8055 Other Projects 8056 CH2MHil1 Study 8055 Other Projects Other Total 8055 Other Projects 8060 Promotional Expenses 8065 Golf Tournament 8060 Promotional Expenses Other Total 8060 Promotional Expenses Total 8000 Program Expense 9000 Contingency 9000 Contingency Other Total 9000 Contingency Total Expense Net Income Clallam County EDC P &L Budget Comparison January 1 through July 1, 1997 Jan 1 -Jul 1,'97 Budget Over Budget of Budget 0 00 15,000 00 15,000 00 0 0% 12,542 88 15,000 00 -2,457 12 83 6% 21,782 20 75,000 00 53,217 80 29 0% 0 00 5,000 00 -5,000 00 0 0% 21,782 20 80,000 00 -58,217 80 27 2% 4,779 04 4,218 02 5,000 00 -781 98 84 4% 8,997 06 5,000 00 3,997 06 179 9% 272,392 32 355,800 00 83,407 68 76 6% 0 00 8,485 00 -8,485 00 0 0% 0 00 8,485 00 -8,485 00 0 0% 373,218 75 562,190 00 188,971 25 66 4% 51,593 77 -9,190 00 60,783 77 -561 4% Page 3 08/19/97 ASSETS Current Assets Checking /Savings 1000 Petty Cash 1010 EDC Savings 1020 EDC Checking 1040 CD FFS &L 349 1042 CD FFS &L 108 1043 MRA FFS &L 609 Clallam County EDC Balance Sheet As of July 1, 1997 Jul 1, '97 315 12 147,324 62 561 68 18,338 97 16,695 15 13,039 96 Total Checking /Savings 196,275 50 Accounts Receivable 1210 AIR Clallam County 2,000 00 1213 A/R Sequim 1,666 67 1215 A/R City of Port Angeles 5,812 81 1216 A/R PUD 2,333 34 1217 A/R Port of Port 2,500 00 1225 A/R Forks 2,317 50 1245 A/R WA WDN 23,231 99 1250 A/R PDA Planning 2,229 16 1260 Data Books 32 38 1270 Memberships 1,485 00 1280 Miscellaneous 163 77 1290 A/R Due (to) from FTC 28,000 00 Total Accounts Receivable 71,772 62 Total Current Assets 268,048 12 Fixed Assets 1350 Equipment 28,523 00 1351 Accumulated Deprec. 25,413 00 Total Fixed Assets 3,110 00 TOTAL ASSETS 271,158.12 LIABILITIES EQUITY Liabilities Current Liabilities Accounts Payable 2000 Accounts Payable 9,224 39 Total Accounts Payable 9,224 39 Credit Cards U S Bank -10 00 Total Credit Cards -10 00 Other Current Liabilities 2031 FICA Withholding Payable 1,441 63 Sales Tax Payable 8 92 Total Other Current Liabilities 1,450 55 Total Current Liabilities 10,664 94 Total Liabilities 10,664 94 Equity 3900 Net Worth 188,753 99 Opening Bal Equity 0 42 Retained Earnings 20,145 00 Net Income 51,593 77 Total Equity 260,493 18 TOTAL LIABILITIES EQUITY 271,158.12 .Page 1 April 22, 1997 Becky Upton, City Clerk City of Port Angeles P 0 Box 1150 Port Angeles, WA 98362 Marny Hannan Assistant Director CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL RE: Report for the Period January 1, 1997 through March 31, 1997 Dear Becky: Enclosed is the report of the Council's activities and the financial report for the above referenced period Please retain for your records. If you have any questions or need additional information, please let me know. Sincerely, 102 E FRONT P 0 BOX 1085 PORT ANGELES, WA 98362 -0204 PHONE 360 457 7793 FAX 360 452 9618 INTERNET ccedc @olympus net M E M O R A N D U M DATE: April 21, 1997 FROM: Bart Phillips, Executive Director RE: First Quarter 1997 CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL The following is a summary of Council activities for the period January 1, 1997 through March 31, 1997. The results discussed in the report are financially supported by the City of Port Angeles, City of Sequim, City of Forks, Clallam County, the Port of Port Angeles, Clallam County Public Utility District #1, Washington State Department of Community, Trade and Economic Development, Economic Development Administration and the Membership of the Council. Industrial Recruitment and Marketing Recruitment Highlights during the first quarter include: three site visits by manufacturing firms to review local site options submission of nine investment proposals to inquiries from state and Council generated investment leads generation of 60+ investment leads from print advertising campaign business recruitment goes on -line with the Council's Internet site www.clallam.org Marketing Over sixty inquiries and one site visit resulted from an ad which was placed in the Alaska Airlines magazine during the quarter. Each inquiry received an investment proposal and profile, and a follow -up mailing is slated for these potential clients in mid April. This ad had as its theme, "Who says work 1 and play don't mix and may be run again in the fall. A similar ad was placed in the North Olympic Visitor and Convention Bureau's Visitor Guide. Also during the quarter, staff implemented a marketing plan targeting recreational equipment manufacturers. The theme "build it in the morning, test it in the afternoon" has resulted in several inquiries and a second mailing is scheduled for mid -April for this project as well. The Council has established a virtual web site (www.clallam.org) to support industrial recruitment. Prospective industrial recruitment clients can review Council services and download information regarding industrial sites, maps showing the Industrial Parks at Forks and Port Angeles, costs and incentives. Industrial recruitment consultants utilize the Web as a tool in their research of possible sites for their relocating clients. In early February, the Council attended the International Boat Builders Exposition (IBEX). This boat builders trade show enabled the Council to market the "Gateway Marine Center, the West Coast's Super Yacht Repair Center". Potential customers expressed interest in service and other opportunities involving marine trades. Twelve leads were developed and are being worked by the Council. The Council and Forks Economic Development Steering Committee attended the Wood Products Showcase in late January. The Council's 1996 -1997 Work Plan calls for targeted marketing in the value -added wood products sector, and this was an opportunity to network and market the County to that industry. The show has been reoriented toward marketing building supplies. While the overall show has become more successful and attendance is up, the Council and City of Forks should reevaluate continued participation. Show attendees are predominantly buyers. Our targets are manufacturers. The majority of exhibitors are distributors. Continued participation would be warranted if we represented area suppliers as the City of Forks accomplished in 1996. Rayonier Mill Closure Response The Council was a key participant of the Mill Alternatives Committee work to identify options for job retention and alternative use of the Rayonier Mill. EDC members Dick Kott, Randy Johnson, Orville Campbell spent considerable time working with consultant CH2MHiII to find solutions. Also on the MAC are local attorney Gary Colley, Dave Hagiwara (Port of Port Angeles), Jim Keogh (state of Washington), and Jim Tussler (Washington State Labor Council). The Council was successful in securing grant financing from the Economic Development Administration ($65,000) and Washington Department of Community, Trade and Economic Development ($10,000) to support consultant work. These funds were matched by commitments from the City of Port Angeles, Port, County and Clallam County Economic Development Council The results of the study indicated the following: a) the mill in its current configuration is not economically viable, b) there is a potential for profitable operation of the mill by modifying the operations; c) there are parties interested in investment of the modified operation; d) there are specific industrial assets 2 which should be retained by the community in support of alternative industrial uses of the site. Despite these findings, it was made clear to the community that Rayonier was not interested in a sale of their assets to a potential competitor. The Full Economic Response Team decided not to pursue further alternative operations of the mill given the Company's position. The mill was closed on February 28, 1997, and dismantling has begun. The community continues to investigate options for use of the site and strategic assets of the company. Forestry Training Center In January, the firm of J J Construction of Sequim broke ground on the Forestry Training Center in Forks and as of today, the building is close to completion. The Center continues to turn out high caliber graduates in hand falling and cut -to- length operations. The next class to graduate will be in April. Director Al Angrignon is enlarging the scope of marketing efforts to attract a diverse group of students. The first FTC Annual Meeting was held January 31, 1997 Sequim Development Projects The Council is working cooperatively with the City of Sequim and the Sequim Development Committee in the implementation of the economic development component of the Sequim Comprehensive Plan. Specifically, the reuse of the vacant commercial facilities in Sequim and development of a business plan for a small business incubator, possibly located in one of these vacant sites. Small Business Assistance Small Business Development Center Washington State University Business Development Specialist Kathleen Purdy served 82 Clallam and Jefferson County clients during the first quarter. Total new investment resulting from counseling activities was over $1,000,000 in the two counties and resulted in five new jobs. Kathleen continues to track the clients served on a six -month check -in basis. SCORE Chuck Lamb provided one -on -one counseling for twenty -four entrepreneurs during the quarter In addition, he presented ideas to high school students at the "Work to School" career fair at Peninsula College and spoke to the Rayonier Entrepreneurial Training Class on business planning. Olympic Microloan Fund During the quarter, a $15,200 loan was made to a company in Forks. The funds were used to refinance debt and repair critical equipment. OMF Project Manager Arlen Veleke made a presentation to the Nor'Wester Rotary Club of 3 Port Angeles and the Sequim Chamber of Commerce in the continuing marketing of the program. Training Kathleen Purdy has received certification as a qualified instructor of the NXLevel Entrepreneurial Training Program. The Council is considering offering this type of training to existing businesses as part of the 1997 -1998 Work Plan. The Council provided a series of seminars in March and April focusing on planning, graphic design and a lenders workshop. Kathleen conducted a workshop as part of the "Small Farming in Western Washington" conference, and a "Visioning, Goal Setting Planning" workshop for the Washington State Weed Coordinators Association. Kathleen also presented at the Peninsula College Career fair and the Rayonier Entrepreneurial Training Classes. Washington Community Economic Revitalization Team (WA -CERT) In December 1996, the Council administered the re- prioritization process for the County's projects to be submitted to the CERT in January. This was accomplished with a list of eighteen projects. In March, the CERT meeting was hosted by the City of Forks giving the communities an opportunity to make presentations on the top five projects. 4 ASSETS Current Assets Checking /Savings 1000 Petty Cash 1010 EDC Savings 1020 EDC Checking 1040 CD FFS &L 349 1042 CD FFS &L 108 1043 MRA FFS &L 609 Clallam County EDC Balance Sheet As of April 1,1997 Apr 1, '97 126 71 86,763 38 6,025 73 18,038 65 16,481 60 12,865 58 Total Checking /Savings 140,301 65 Accounts Receivable 1210 A/R Clallam County 954 35 1213 A/R Sequim 1,250 00 1215 A/R City of Port Angeles 6,342 72 1216 A/R PUD 1,750 00 1217 A/R Port of Port 5,954 35 1225 A/R Forks 1,158 75 1228 A/R Wash State University 425 00 1250 AIR PDA Planning 2,229 16 1255 A/R PDA NEAT 12,270 00 1260 Data Books 56 66 1270 Memberships 5,420 00 Total Accounts Receivable 37,810 99 Total Current Assets 178,112 64 Fixed Assets 1350 Equipment 28,523 00 1351 Accumulated Deprec. 25,413 00 Total Fixed Assets 3,110 00 TOTAL ASSETS 181,222.64 LIABILITIES EQUITY Liabilities Current Liabilities Accounts Payable 2000 Accounts Payable 18,352 04 Total Accounts Payable 18,352 04 Credit Cards U S Bank 1,068 46 Total Credit Cards 1,068 46 Other Current Liabilities Sales Tax Payable 416 Total Other Current Liabilities 416 Total Current Liabilities 19,424 66 Total Liabilities 19,424 66 Equity 3900 Net Worth 213,307 74 Opening Bat Equity 0 43 Net Income 51,510 19 Total Equity 161,797 98 TOTAL LIABILITIES EQUITY 181,222.64 Page 1 Clallam County EDC 04/14/97 P &L Budget Comparison January through March 1997 Jan Mar '97 Budget Over Budget of Budget Income 4000 Contracts 25,842 15 212,500 00 186,657 85 12.2% 5000 Earned Income 7,617.93 14,000 00 -6,382 07 54.4% 6050 Program Revenue 000 245,000 00 245,000 00 0.0% 5070 Other Income 618.03 3,500.00 -2,881 97 17 7% Uncategorized Income 900 Total Income 34,087 11 475,000 00 440,912.89 7.2% Expense 6000 Personnel 30,529 17 148,855.00 118,325 83 20 5% 6050 Communications 3,246.44 12,950 00 9,703.56 25 1% 7000 Office Operation 10,095 02 21,600 00 11,504 98 46 7% 7050 Trav/Train /Subscrp 1,056.52 14,500.00 13,443.48 7.3% 8000 Program Expense 40,670 15 280,80000 240,129.85 14.5% 9000 Contingency 000 8,485.00 8,485 00 0 0% Total Expense 85,597.30 487,19000 401,592.70 17.6% Net Income 51,510.19 12,190.00 39,320.19 422.6% Page 1 \�y OF pORT gHOA. V F 0 F p E P PR January 17, 1997 Memorandum TO: Manager Pomeranz, Mayor Ostrowski, and City Council FROM: Becky J. Upton, City Clerk SUBJECT: 1997 Agreement with Clallam County Economic Development Council Summary/Recommendation: The City enters into an annual agreement with the Clallam County Economic Development Council, which performs various economic development activities that will enhance the economy and employment opportunities in the City. It is recommended that the City Council approve and authorize the Mayor to sign the attached agreement with the EDC for 1997. ISSUE: Should the City Council approve the attached agreement with the Economic Development Council for 1997? BACKGROUND /ANALYSIS: During the 1997 budget review, the City Council authorized funding for the Economic Development Council in the amount of $22,500, plus $2,500 for in- kind telephone services. The EDC performs various economic development activities that will enhance the economy and employment opportunities in the City. An agreement for services must be executed in order for this funding to be provided. The attached agreement is much the same as last year's; however, it should be noted that Section 1.B., under Performance by Contractor, is added to this agreement, as follows: Attachment "The Contractor shall continue to use its resources to jointly market the facilities and capabilities of the City to new and existing businesses with the goals of increasing City revenues and general employment opportunities for City residents." 5, Clallam County EDC P 0 Box 1085 Port Angeles WA 98362 BILL TO City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 Services for 1st Quarter 1997 For questions regarding this invoice, call Katy Stansifer (360) 457 -7793 DESCRIPTION Make all checks payable to: Clallam County EDC _Il <L990 o_.1 ,C q 7 5. 3Lp Invoice DATE INVOICE 3/31/97 4 TERMS Upon Receipt AMOUNT 5,625.00 Total $5,625 00 Frain: Bart Phillips To: Jeff Pameranz April 7, 1997 TO: From: Bart Phillips, Executive Director RE: March Management Report Date: 4!3197 Time: 04:32:17 CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL Board of Directors, Executive Board, EDC Membership, Council Stakeholders The CQntext.for Recruitment. A Presentation on the Techniques and Expectations for industrial Recruitment in the' 1990's April Board of Directors Meeting April 17th, 12 noon Clallam Transit Meeting. Room, Port Angeles Pubic Invited RSVP 360-457-7793 COUNCIL AND PORT DISCUSS RECRUITMENT Executive Board Members Randy Johnson, Mike McAleer, and Glen Wiggins met with Port of Port Angeles Commissioners and staff to discuss the Port's expectations for Council services in 1997 The clear message is that the Port views industrial recruitment as the #1 priority for their $30,000 annual investment in the Council In the Port's opinion, Council efforts should be targeted to recruiting primary manufacturing jobs Development of other sectors of the economy (services and retail trade) should rely on the economic multiplier effect of increased primary economic activity. To facilitate recruitment, the Commissioners discussed potential investment in pre developed industrial buildings. 102 E FRONT PO BOX 1085 PORT ANGELES, WA 98362 -0204 PHONE 360 457 7793 FAX 360 452.9618 E -MAIL CCEDC@?OLYMPUS NET Page 2 of 5 5. 156 C From: Bart Phillips To: Jeff Pomeranz Date: 418197 Time: 04:33:58 Page 3 of 5 COUNCIL ON LINE AT WWW.CLALLAM.ORG Clallam County business recruitment has gone digital with the Council's new virtual domain Prospective clients can puruse or download a variety of information ranging from economic profiles and our regional report to maps of the Forks and Port of Port Angeles Industrial Parks Clients can request a detailed proposal or further information on sites, costs and relocation incentives The World Wide Web is at its best as an information resource Industrial recruitment consultants report its increasing use as companies downsize their real estate and research departments. Detailed site research can be conducted with the click of the mouse Our site was put up with that in mind and is a work in progress as we refine what our clients want and how they want it The payoff is unclear However, we received an information request from a southern California manufacturer one week after the site was up ALASKA AIRLINES CAMPAIGN SHOWING RESULTS Over 60 inquiries and one site visit from an interested business have resulted from our advertisements in Alaska Airlines Magazine Touting that we "Work Hard and Play Hard" the $6,000 project is paying off_ Each inquiry receives an investment proposal and our standard investment profiles Second mailing for initial contacts are slated for mid -April Based upon feedback from those contacts the Council will determine whether to continue the campaign We are pleased with the response to date_ REVITALIZED STATE BUSINESS RECRUITMENT PROVIDING SUPPORT A year ago, the State of Washington's Business recruitment was moribund Buffeted by the shotgun merger of the Department's of Trade and Community Development and legislative budget cuts, recruitment at the state level was almost non existent The Council received a monthly list of leads from magazines Quality of the leads were low. Things have changed remarkably During the last several months the Council has received and responded to a number of well qualified prospects and the state is cooperatively advertising and coordinating trade shows and other activities The state by all gauges is once again in the recruitment game. The change? A commitment from the Department of Community, Trade and Economic Development and assignment of key staff people who are excited about recruitment. Peter McMillin, Ray Issacson and Brian Olson The recent major state investments of Wafertech (Camas) ,BHP (Longview) and Intel (Dupont) have put Washington State in the forebrain of corporate relocation specialists who seem to be the root of most state generated leads The Council's recruitment program will be only as strong as its weakest partner The State seems to be gaining strength The only dark cloud is that the Washington State legislature is once again taking the budget ax to the Department Preliminary budgets again cut recruitment Alas, results do not always generate support in a political environment. From: Bart Phillips To: Jeff Pomeranz Date: 418197 Time: 04 :35:10 Page 4 of 5 FTC BUILDING NEARS COMPLETION The Forestry Training Center Corporate Headquarters at the Forks industrial Park came out of the ground in February and will be complete in April The rapid construction is due to the quality work of our contractor, J and J Construction of Sequin', and two weeks of dry weather in February Director Al Angrignon and his staff continue to turn out quality graduates Based upon hiring results, there is a high demand for trained cut -to- length operators and hand falters The next class graduation in mid April will mark the official opening of the new facility And yes, the Council builds buildings too, ahead of schedule ECONOMIC RESPONSE TEAM COMPLETES RAYONIER ALTERNATIVE ANALYSIS The Council, Mill Alternatives Committee and Economic Response Team completed their analysis of alternative operations of the Rayonier pulp mill in Port Angeles. Despite positive findings, Rayonier remains steadfast in its resolve to demolish the facility and convert the site to alternative uses The Committee was charged to evaluate economically viable alternatives and identify key industrial assets for retention for future industrial use of the site Supported by consultant CH2MHiIl, the committee found 1) the mill in its current configuration is not economically viable, 2) by reconfiguring and modifying operations, there is potential for profitable operation of the mill, 3) there are interested parties that may have invested in a modified operation, and, 4) there are specific industrial assets that should be retained by the public to support alternative industrial uses of the site Despite these finding, the owner, Rayonier, is not interested in further evaluation of the alternatives The Company is not interested in sale of their assets to a potential competitor The company was simultaneously skeptical of the study's findings The full Economic Response Team decided not to pursue further alternative operations of the mill given the Company's position The Mill Alternatives Committee was Chaired by Dick Kott (Economic Development Council) and included members Orville Cambell (Port Angeles City Council), Randy Johnson (Port Angeles Chamber of Commerce), Gary Colley (Economic Response Team), Dave Hagiwara (Port of Port Angeles), Jim Keogh (Washington Department of Community Trade and Economic Development) and Jim Tussler (Washington State Labor Council) The Council thanks each for their wise counsel and innumerable hours on the project The project was financially supported by the Economic Development Administration, State of Washington, Port of Port Angeles, City of Port Angeles, Clailam County and the Council Copies of the final report can be obtained from the Council COUNCIL WORKS ON SEQUIM DEVELOPMENT PROJECTS One of Sequims top prioities is to development of a business incubator for samll businesses. Marny Hannan has been working with the Sequim Chamber of Commerce and the Sequim Development Commmittee to develope a business plan including site selection, market analysis and financing. From: Bast Phillips To: Jeff Pomeranz Date: 4/8/97 Time: 04:36:24 Page 3 of 5 BUSINESS ASSISTANCE Small Busines Development Specialist Kathleen Purdy counseled eighteen clients during March, eight of those being new. One client, a Forks business, received a $15,200 microloan from the Olympic Microloan Fund to refinance current debt and repair critical equipment. SCORE counselor Chuck Lamb advised nine start -up businesses as well as presenting ideas to high school students at the "Work to School" career fair at Peninsula College. Kathleen participated in the fair as well. The Council sponsored one workshop on business marketing and two additional workshops are slated for April. Kathleen conducted a workshop for the Washington State Weed Coordinators Association and made a presentation to the Rayonier Mill Workers' Entrepreneurial Training Class. AGREEMENT THIS AGREEMENT is entered into this J- day 1997, by and between the City of Port Angeles, Washington, municipal corporation, hereinafter called "City and the Clallam County Economic Development Council, Inc., a non profit corpora- tion, hereinafter called "Contractor WHEREAS, the City is a municipal corporation of the State of Washington authorized to contract for economic development services; and WHEREAS, it is in the public interest for economic develop- ment activities to be performed that will enhance the economy and employment opportunities in the City of Port Angeles; 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 above representations and the mutual covenants and agreements herein, it is agreed by the parties as follows: 1. Performance by Contractor. A. The Contractor shall use its capabilities to promote and enhance economic development and employment opportunities in the City of Port Angeles in accordance with the goals established by the Contractor's Board of Directors as set forth in the attached Exhibit "A B. The Contractor shall continue to use its resources to jointly market the facilities and capabilities of the City to new and existing businesses with the goals of increasing City revenues and general employment opportunities for City residents. C. The Contractor shall use its capabilities to continue and up- date the ongoing performance of the following specific services as necessary: (1) Maintain and up -date a survey of industrial growth within the actual and potential areas served by the City, and the attributes and deficiencies of those areas for economic and industrial growth. (2) Maintain and up -date listings of available industrial sites for new or expanded industry which are, or may be, served by the City, including appropriate economic information for those industrial sites. D. All of the information developed by the Contractor for the City pursuant to paragraph 1(A) may be incorporated into a "guidebook" or an "overall economic development plan" involving other governmental entities and private businesses, so long as the information pertinent to the City is available and identifiable within those publications, for use by the City. E. The Contractor shall serve as a general research and reference service for officers and employees of the City, and in this capacity shall perform such functions as participating in the process of responding to inquiries from new industries or other commercial ventures which seek information concerning the facilities and resources managed by the City. F. The Contractor shall, upon request, consult with and assist the City at reasonable times and in a reasonable manner, in the development and execution of programs aimed at better planning, utilization, promotion, and advertisement of community services, facilities and, if applicable, utilities. G. The Contractor shall assist the City in applying for and administering economic development and related grants, including downtown low interest loan program. H. The Contractor shall maintain records and report to the City as follows: (1) The Contractor shall maintain accounts and records which accurately reflect the revenues and costs for the Contractor's activities under this Contract. These financial records, and all records related to the performance of this Contract, shall be available for City inspection. (2) The Contractor shall provide the City with quar- terly reports fully describing what work has been performed pursuant to this Contract, and including a current statement of revenues and costs. (3) The Contractor 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. (4) The Contractor shall provide the City with an annual budget, including current salaries and benefits for all employees and classifications of employees and shall notify 2 the City within 30 days of any increases in salaries or benefits from the previous year. 2. Performance by the City. A. For the services rendered by the Contractor, the City will provide, by payment in cash, the amount of Twenty -Two Thousand Five Hundred Dollars ($22,500.00), and, by in kind telephone services, an amount not to exceed Two Thousand Five Hundred Dollars ($2,500.00). 3. Payment by the City shall be due upon receipt and acceptance by the City Manager of the Contractor's quarterly report as required under Paragraph 1(G) of this Contract. The Contractor will invoice the City for all quarterly payments. 3. Term. This agreement shall be for a term of one year, commencing on January 1, 1997. 4. Assianment. This agreement may not be assigned by either party to this agreement except by signed amendment. 5. Breach. A. In the event of either party's material breach of the terms or conditions of this Contract, the non breaching party reserves the right to withhold payments or services until corrective action has been taken or completed. However, the party shall not exercise this right until they have given written notice of such material breach to the breaching party and ten days have passed since the receipt of such notice. This option is in addition to and not in lieu of the parties' right to termi- nate this Contract or any other right which State law offers for breach of contract. 3. If either party shall materially breach any of the covenants undertaken herein or any of the duties imposed upon it by this Contract, such material breach shall entitle the other party to terminate this Contract, provided that the party desiring to terminate for such cause shall give the offending party at least twenty days' written notice, specifying the particulars wherein it is claimed that there has been a violation hereof, and if at the end of such time, the party notified has not removed the cause of complaint, or remedied the purported violation, then the termination of this Contract shall be deemed complete. 6. Non Discrimination. The Contractor shall conduct its business in a manner which assures fair, equal and non- discr :minatory treatment of all persons, without respect to race, creed or national origin, and, in particular: A. The Contractor shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity /affirmative action requirements; and, B. The Contractor shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non- discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran's status, disabled veteran condition, physical or mental handicap, or national origin. officers, agents, and employees from and against any and all claims, damages, losses, and expenses, including reasonable attorney's fees, occurring, arising, or resulting from supplying work, services, materials, or supplies in connection with the performance of this Contract. B. Entire Contract. The parties agree that this Contract is the complete expression of the terms hereto and any oral repre- sentation or understanding not incorporated herein is excluded. Further, any modification of this Contract shall be in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereto caused this Contract to be executed the day and year first hereinabove written. 7. Hold Harmless and Indemnification. The Contractor shall protect, defend, save harmless, and indemnify the City, its PORT ANGELES PY osper Ostrowski CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL, INC. ATTEST: Becky J Ci y Clerk APPROVED AS TO FORM: Craig D.(nutson, City Attorney Vice Presiden AGMT EDC CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL WORK PROGRAM FOR THE PERIOD JULY 1, 1996 JUNE 30, 1997 Business Assistance and Retention 1. Continue to provide full service business assistance programs through support of: A. the Small Business Development Center B. Service CORP of Retired Executives (SCORE) C. Peninsula College Entrepreneurial Training Program D. CCEDC Small Business Information Center. II. Recruit two additional SCORE volunteers to expand service in Port Angeles/ Sequim and Forks. III. Develop business assistance tracking system. IV. Explore mechanisms to expand research and support capabilities for SBDC; implement cost effect solutions. A. Evaluate work study options. B. Seek expanded support from JCEDC. V. Expand marketing of business assistance services. VI. Market microtoan program; re- capitalize if necessary. VII. Evaluate business mentoring options considering Recruitment Team approach and present options to Board for evaluation. VIII. Continue and expand business training workshops in partnership with Peninsula College. IX. Provide marketing and tuition assistance to Peninsula College Entrepreneurial Training Program. Business Recruitment I. Implement Business Recruitment program to the maximum level possible without impacting busineso assistance service or other programs of the Council. 102 E. FRONT PO BOX 1085. PORT ANGELES, WA 98362 -0204 PHONE: 360.457 7793 FAX• 360 452.9618 E-MAIL CCEDCeOLYMPUS NET Exhibit "A" II. Implement Target Marketing program focused on aerospace, value added wood products, recreational equipment manufacturing, marine trades and agriculture /aquaculture. III. Utilize recruitment team approach in cooperation with other economic development partners. IV. Continue to update Claflam County Data Book. V. Create an average of 50 jobs per year over the next 10 years. Other Initiatives I. Continue to support the start-up of the Forestry Training Center. II. Support the implementation of the Valley Creek Estuary Project. III. Provide support to Elwha Citizens' Advisory Committee. IV. Stage Third Annual Golf Tournament. V. Evaluate means of increasing international commerce. VI. Support Sequim's expansion of the Olympic Discovery Trail. VII. Support Forks' Phase II of the Forks Industrial Park. VIII. Continue to support the sport fishing industry by participation in the Pacific Fisheries Management Council. IX. Grow the Clallam County Economic Development Council's membership to 100. 1997 Draft CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL 1997 Draft Budget prepared November 4, 1996 revised December 9, 1996 1997 1996 1996 Variance' Draft Budget Projected 97/96 REVENUES Unrestricted Reserves Available for Operations 78,238 45,825 45,825 171% Contracts Port of Port Angeles 30,000 30,000 30,000 100% Clallam County 21,000 21,000 21,000 100% City of Port Angeles 22,500 22,500 22,500 100% City of Port Angeles (in kind telecommunications) 1,250 2,500 2,500 50% City of Forks 4,500 4,500 4,500 100% City of Sequim 5,000 5,000 5,000 100% Public Utility District #1 7,000 7,000 7,000 100% Washington Department of Trade 20,000 25,000 23,750 84% Peninsula Development Association 27,500 25,375 24,000 115% PDA Northwest Economic Adjustment Initiative 47,500 60,000 60,000 79% DTED Marketing Contract 25,000 0 15,000 167% Total Contracts 211,250 202,875 215,250 98% Earned Income Memberships 7,500 10,000 7,500 100% Promotional Income 5,000 5,000 5,780 87% Misc. Receipts Checking Acct. Interest 1,500 4,000 2,895 52% Total Earned Income 14,000 19,000 16,175 87% Program Revenue Forestry Training Center 245,000 425,000 180,000 136% Entrepeneurial Training 0 500 0 0% Total Program Revenue 245,000 425,500 180,000 136% Other Income JCEDC Travel Reimburse 2,000 300 2,500 80% Uncatagorized Income 0 10,000 30,000 0% Total Other Income 2,000 10,300 32,500 6% TOTAL AVAILABLE CASH 472,250 657,675 443,925 106% 1997BUD XLS 12/9/96 Page 1 1997 Draft 1997 1996 1996 Variance' EXPENSES Draft Budget Projected 97/96 Personnel: Executive Director 52,500 52,500 52,500 100% Assistant Director 28,500 27,000 27,500 104% Program Manager 25,000 25,000 25,000 100% Administrative Assistant 9,360 10,400 9,360 100% Intern 0 5,460 0 0% Personnel Contingency 11,536 12,036 500 NM Taxes 13,959 14,564 16,353 85% Health Insurance 6,000 4,000 4,221 142% Incentive Bonuses 2,000 2,000 2,000 100% Total Personnel 148,855 152,960 137,434 108% Communications: Postage /Freight 3,000 4,500 2,828 106% Printing Investor's Guides 1,000 NM Telecommunications basic service 2,000 1,956 1,799 111% City of Port Angeles (in kind telecommunications) 1,250 2,500 2,500 50% computer services 600 420 300 200% cellular 600 600 435 138% Photocopies 2,000 1,200 1,692 118% Advertising 2,500 2,500 2,500 100% Total Communications 12,950 13,676 12,054 107% Office Operation: Audit/Tax Preparation Liability /Err. Omiss. Insurance Fees /Payroll Service Professional Services Office Equip Repr. Maint. Office Equipment Office Supplies Total Office Operations Travel /Training /Subscriptions: Conferences/ Training 2,000 3,000 2,000 100% Travel /Business Recruitment 10,000 14,000 8,000 125% Members /Community Outreach 1,500 1,000 1,000 150% Dues /Subscriptions 1,000 1,000 700 143% Total Travel/ Training/ Subscriptions 14,500 19,000 11,700 124% 1997611D XLS 12/9/96 Page 2 1,000 1,000 945 106% 2,100 2,000 2,035 103% 2,000 2,000 2,143 93% 2,500 5,000 2,000 125% 2,500 2,000 2,000 125% 1,500 1,500 1,500 100% 10,000 7,000 9,540 105% 21,600 20,500 20,163 107% Program Expense Forestry Training Center 245,000 425,000 180,000 136% Business Recruitment 7,000 14,000 7,000 100% Infrastructure Planning 4,000 0 NM Other Projects 5,000 12,000 7,500 67% DCTED Marketing 15,000 15,000 100% Entrepeneurial Training 3,800 5,000 1,200 317% Promotional Expense 5,000 4,958 101% Total Program Expense 280,800 460,000 215,658 130% Contingency (10% of operations) Ending Cash Available for Operations Net Increase (Decrease) in Cash 1997 Draft TOTAL DISBURSEMENTS 487.190 674.953 398.008 122% 19978UD XLS 12/9/96 Page 3 8,485 8,818 1,000 NM 63,298 28,547 91,743 69% 14,940 17,278 45,917 1996 RESERVE CALCULATION Monthly Average Operating Cost 1997 Draft Personnel less Contingency 11,277 11,577 Communications 871 931 Office Operations less Professional Services 1,383 1,292 Travel 1,208 1,583 Total Monthly Operations 14,739 15,383 Reserves at 6 months Operations 88,434 92,300 Projected Cash on Hand 12/31/95 166,672 138,125 Less Reserves 88,434 92,300 Unrestricted Reserves 78,238 45,825 1997E3UD XLS 12/9/96 Page 4