HomeMy WebLinkAbout[4d] Contract Renewal
ern' or ST. JO!SICPH:
Council Agenda Item.E..d-
MEETING DATE:
January 3, 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/COMMISSION/COMMITTEE RECOMMENDATION: The St. Joseph Economic Development
Authority reviewed the annual contract for Economic Development Services and unanimously
recommended the Council renew the contract for 2008. The contract can expire upon hiring and
transition of a Community Development Director.
PREVIOUS COUNCIL ACTION: For the past six 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
int~rested in continuing to provide these services and work with the EDA and community to further
commercial and industrial development. As noted in the proposed contract, we are aware the City
intends to hire a staff level Community Development Director during the calendar year 2008. We
applaud the City's foresight and seek to work with staff to provide for an orderly transition.
Enclosed is a letter outlining previous contract arrangements and the proposed contract for 2008 which
will be cancelled upon staff level position becoming effective and a subsequent transition period.
BUDGET/FISCAL IMPACT:
ATTACHMENTS:
Contract Letter
REQUESTED COUNCIL ACTION: Authorize execution of the contract for services between the City of St.
Joseph and MDG for Economic Development services. The contract shall expire upon the hiring and
successful transition of a staff Community Development Director. .
~.
MUNICIPAL
DEVELOPMENT GROUP, INC.
December 19, 2007
City Administrator Weyrens
Mayor, City Council and S1. Joseph EDA
25 College Avenue, PO Box 668
S1. Joseph, MN 56374
Dear Administrator Weyrens, Mayor Rassier, and Council Members:
Over the previous six and one-half years we have. enjoyed working with the business community, City
Council, EDA, City Staff and the Downtown Work Groups on various economic development projects as
the City's Economic Development Consultants. We continue to see tremendous potential for continued
commercial and industrial growth and redevelopment in 2008 and in the future. In 2007 we have had the
opportunity to work with the City, EDA, Downtown Work Groups and a number of business contacts on
current plans/projects and those that are being planned for 2008. We feel consistency in business
contact and development is important.
In December 2006, we entered into a one-year contract for economic development consulting services for
calendar year 2007. 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 2007 MDG, Inc. has provided 409 of the 420 hours
of contracted service.
The preliminary 2008 EDA budget included a nominal increase in the 'professional services' line item
earmarked 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 2008. We understand the City is
has budgeted for a staff level Community Development Director position to be filled in 2008. We welcome
the opportunity to provide service until the full time staff member begins his/her tenure. We also welcome
an opportunity to assist the City and the full time staff member through a two-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.
If the City wishes to retain the services of MDG, Inc. to assist with economic development activities for the
calendar year of 2007, we propose the same contract rate of $55/hour or a monthly contract rate of
$1,925/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 2007 non-contract hourly rate is $80/hour for principal and $70/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 againfor your cO(l'sideration!
(~1' uA~q ~j?{/I~
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