HomeMy WebLinkAboutN [9a] EDA Contract
Council Agenda Item 9 8
MEETING DATE:
January 15, 2009
AGENDA ITEM: Contract Renewal -Requested Action: Authorize execution of the
contract for services between the City of St. Joseph and MDG for Economic Development Services as
recommended by the EDA.
SUBMITTED BY:
Cynthia Smith-Strack, St. Joseph EDA
BOARD/COMMISSIONjCOMMITTEE RECOMMENDATION: The St. Joseph Economic Development
Authority reviewed the annual contract for Economic Development Services and unanimously
recommended the Council renew the contract for 2009. The contract can expire upon hiring and
transition of a Community Development Director.
PREVIOUS COUNCIL ACTION: For the past seven years the City Council has reviewed and renewed the
contract for services between the City of St. Joseph and MDG.
BACKGROUND INFORMATION: MDG Inc has provided economic development consulting services to the
City of St. Joseph since August of 2001. As noted at the time of preliminary budget review, MDG, Inc. is
interested in continuing to provide these services and work with the EDA and community to further
commercial and industrial development.
BUDGET/FISCAL IMPACT:
ATTACHMENTS: Memo to eDA
REQUESTED COUNCIL ACTION: Authorize execution of the contract for services between the City of St.
Joseph and MDG for Economic Development services.
MUNICIPAL
DEVELOPMENT GROUP, INC.
December 12, 2008
City Administrator Weyrens
Mayor, City Council and St. Joseph EDA
25 College Avenue, PO Box 668
St. Joseph, MN 56374
Dear Administrator Weyrens, Mayor Rassier, and Council Members:
Over the previous seven and one-half years we have enjoyed working with the business community, City
Council, EDA, City Staff, and citizens on various economic development projects as the City's Economic
Development Consultant. Although we are faced with the challenge of a struggling economy, we continue
to see tremendous potential for continued commercial and industrial growth and redevelopment in St.
Joseph's future. In 2008 we have had the opportunity to work with the City, EDA, citizens, and a number
of business contacts on current plans/projects and those that are being planned for 2009. We feel
consistency in business contact and development is important.
In December 2007, we entered into aone-year contract for economic development consulting services for
calendar year 2008. We are very interested in continuing to assist the EDA and City with economic
development projects. Our current contract rate is $1,925 for 35 hours of service per month (420 hours
per year) or $55.00 per contracted hour. Thus far in 2008 MDG, Inc. has provided 407 of the 420 hours of
contracted service.
The preliminary 2008 EDA budget holds the line in the 'professional services' line item for consulting
services. A total of $28,000 was included in the preliminary budget for EDA staffing services.
We welcome the opportunity to extend the contract into calendar year 2009. We understand the City is
has budgeted for a staff level Community Development Director position to be filled in 2009. We welcome
the opportunity to provide service until the staff member begins his/her tenure! We also welcome an
opportunity to assist the City and the full time staff member through atwo-month transitional period as per
the EDA's suggestion. MDG would certainly welcome an opportunity to assist the City with planning and
economic development activities on an as-needed hourly basis thereafter.
Our 2007 and 2008 contract rate remained steady at $55/hour or $1,925/month. MDG, Inc. proposes a
slight increase in the contract fee for calendar year 2009 which we would pledge to hold through 2010 as
well. To assist with economic development activities for the calendar year of 2009, we propose a contract
rate of $60/hour or a monthly contract rate of $2,200/month for 35 hours of service including a half hour
lunch each week. The contract amount does not reflect reimbursable expenses including mileage (at
federal reimbursement rate), long distance calls/faxes, etc. Please note our 2009 non-contract hourly rate
is $90/hour for principal and $75/hour for associate services.
If you have any questions regarding our current or future services, please do not hesitate to contact me at
888-7MDG-INC (888-763-4462) or at cstrack@municipaldevelopmentgroup.com.
Thank you again for your consideration!
Cynthia Smith-Strack, Principal
Municipal Development Group, Inc.
25562 Willow Lane • New Prague, MN 56071 • (952) 758-7399 • Fax: (952) 758-3711 •
staff@municipaldevelopmentgroup.com • www.municipaldevelopmentgroup.com