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HomeMy WebLinkAbout[06c] MDG Contract for ServicesMY OF PIT. JOSEPH MEETING DATE: February 17, 2011 AGENDA ITEM: MDG Contract for EDA Services SUBMITTED BY: Cynthia Smith - Strack BOARD /COMMISSION /COMMITTEE RECOMMENDATION: contract. PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: Please see attachment. BUDGET /FISCAL IMPACT: ATTACHMENTS: Proposed Contract. REQUESTED COUNCIL ACTION: Council Agenda Item l C EDA recommends approval of the L414 A MUNICIPAL DEVELOPMENT GROUP, INC. February 9, 2011 City Administrator Weyrens Mayor, City Council and St. Joseph EDA 25 College Avenue, PO Box 668 St. Joseph, MN 56374 Dear Administrator Weyrens, EDA Chair Wick, and EDA Members: Over the previous nine 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 2010 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 2011. We feel consistency in business contact and development is important. In December 2009, we entered into a contract for economic development consulting services for calendar year 2010. We are very interested in continuing to assist the EDA and City with economic development projects. Our current contract rate is $2,200 for 35 hours of service per month (420 hours per year) or $60.00 per contracted hour. Thus far in 2010 MDG, Inc. has provided over 390 of the 420 hours of contracted service. The preliminary 2011 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. As you recall the City Council /EDA discussed staffing level and consulting arrangements in 2009/2010. The proposed EDA budget reflects continued service at current levels. We welcome the opportunity to extend the contract into calendar year 2011. Our 2009 and 2010 contract rate remained steady at $60 /hour or $2,200 /month. MDG, Inc. proposes no changes for the contract fee for calendar year 2011 which we would pledge to hold through 2012 as well. The contract amount does not reflect reimbursable expenses including mileage (at federal reimbursement rate), long distance calls /faxes, etc. Please note our 2011 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 @municipaldeveiopmentgroup.com . www .municipaidevelopmentgroup.com