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HomeMy WebLinkAbout5415 RESOLUTION NO 5415 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO SUBMIT A GRANT FUNDING APPLICATION TO THE PORT OF SEATTLE FOR ECONOMIC DEVELOPMENT PARTNERSHIP PROGRAM FUNDS AND TO ACCEPT AND EXPEND GRANT FUNDS WHEREAS, the Port of Seattle has authorized an Economic Development Partnership Program to support local economic development activities; and WHEREAS, more than $962,000 in matching funds is available to King County cities; and WHEREAS, if its application is approved, the City of Auburn would receive $65,000, for the following eligible activities: business recruitment initiatives designed to attract new companies to a region or city; small business development (including incubator/accelerator projects); industry retention and expansion assistance (ex. Maritime, Aerospace, etc.); tourism development; downtown revitalization; commercial or industrial property development; and other community or economic development projects that support new investment and job creation. Auburn may collaborate with regional partners to enhance impact. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON HEREBY RESOLVES AS FOLLOWS: Section 1. The Auburn City Council authorizes the Mayor to apply to the Port of Seattle for 2019 Economic Development Partnership Program grant Resolution No 5415 April 1, 2019 Page 1 of funds. If the application is approved, the Mayor is authorized to enter into grant agreements, and to expend the grant funds within budgeted amounts Section 2. Implementation. The Mayor is authorized to implement administrative procedures necessary to carry out the directives of this Resolution. Section 3. Effective Date. This Resolution shall take effect and be in full force upon passage and signatures. Dated and Signed this • day ofVic?, , , 2019. CITY OF AUBURN ANCY BA MAYOR ATTEST: APPROV D AS TO FORM: Shawn Campbell, MMC, City Clerk Steven . Gross, City Attorney Resolution No 5415 April 1, 2019 Page 2 of Asomme Port of Seattle' ECONOMIC DEVELOPMENT PARTNERSHIP AGREEMENT BETWEEN THE PORT OF SEATTLE AND CITY OF AUBURN S-00319760 This Economic Development Partnership Agreement (the"Agreement")is made by and between the Port of Seattle (the "Port") and the City of Auburn ("Agency"), both municipal corporations of the State of Washington (each, a "Party" or, collectively, the "Parties"). RECITALS WHEREAS, engaging in the promotion of economic development is a recognized Port purpose authorized under RCW 53.08.245; and WHEREAS, RCW 35.21.703 similarly authorizes cities to engage in economic development programs; and WHEREAS, RCW 53.08.240(2) permits the Port to contract with another municipality to perform such undertakings each is authorized to perform; and WHEREAS, the Port Commission of the Port of Seattle established the Economic Development Partnership Program (the "Program"), to advance the Port' s Century Agenda, promote a dramatic growth agenda, support the creation of middle class jobs and help address the lack of economic development funding for local projects; and WHEREAS, grant funding across the region is very limited for cities that want to pursue economic development projects or initiatives, and Washington State has not had an economic development grant program for over 20 years; and WHEREAS, the Program will provide 38 King County cities per capita funding to advance local economic development throughout the region, and requires a 50% local match by the cities that receive the grants; and WHEREAS, the Program will help the Port advance regional economic vitality through focused partnerships with King County cities; and WHEREAS, the Program will make grants to cities that pursue programs and projects that stimulate business development, job creation and community revitalization, such as small business development, industry retention and expansion, and other economic development projects that support new investment and job Agreement S-00319760 Page 1 of 10 creation; NOW, THEREFORE the parties agree as follows: 1. Purpose. The purpose of this Agreement is to establish a contractual arrangement under which the Port will pay the Agency Program funds in the amount set forth on Section 2 solely for the purpose of carrying out the local initiative described in Exhibit A, attached and incorporated hereto by this reference (the "Project"). This Agreement shall be interpreted in furtherance of this purpose. 2. Responsibilities of tie Pr . The Port shall contribute Sixty-five Thousand and 00/100 Dollars ($65,000.00)(the "Grant Funds") to assist the Agency in funding the Project. The Port shall disburse the Grant Funds to the Agency no later than thirty (30) days after receipt of a complete and correct invoice detailing those Project deliverables completed in accordance with Exhibit A. Subject to the requirements of this Section and of Section 18 (where applicable), the Port shall make the final payment of the Grant Funds to the Agency no later than November 1, 2019, or receipt of the final report, whichever occurs later. 3. Responsibilities of the Aaencv. 3.1 The Agency shall contribute local funds equivalent to at least fifty percent (50%)of the Grant Funds towards the Project. 3.2 The Agency may contract with local non-profits to complete the Project or elements of the Project; provided, that the Port shall not, under any circumstance, disburse the Grant Funds to any of the Agency's contractors or subcontractors. 3.3 The Agency shall complete the Project by November 1, 2019. 4. Term. This Agreement shall be become effective as of the date the Port executes this Agreement and shall terminate on November 1, 2019, unless earlier terminated under another provision of this Agreement. 5. Terminationfoc Convenience, The Port may terminate this Agreement at any time for any reason, by giving the Agency thirty (30) days' written notice. In the event the Agency has completed any portion of the Project by the time it receives the Port's notice of termination, the Port shall pay the Agency the percentage of the Grant Funds attributable to the Agency's completed portion of the Project. 6. Termination for Default. Except in the case of delay or failure resulting from circumstances beyond the control and without the fault or negligence of the Agency, the Port shall be entitled, by written or oral notice to the Agency, to terminate Agreement for breach of any of the terms and to have all other rights against the Agency by reason of the Agency's breach as provided by law. 7. Waiver. Failure at any time of the Port to enforce any provision of this Agreement shall not constitute a waiver of such provision or prejudice the right of the Agreement S-00319760 Page 2 of 10 Port to enforce such provision at any subsequent time. No term or condition of this Agreement shall be held to be waived, modified or deleted except by a written amendment signed by the Parties 8. partial Invalidity. If any provision of this Agreement is or becomes void or unenforceable by force or operation of law, all other provisions hereof shall remain valid and enforceable. 9. Indemnification and Hold Harmless Agreement,The Agency shall defend, indemnify, and hold harmless the Port, its Commissioners,officers, employees, and agents (hereafter, collectively, the "Port")from all liability, claims, damages, losses, and expenses (including, but not limited to attorneys' and consultants'fees and other expenses of litigation or arbitration) arising out of or related to the fulfillment of this Agreement; provided, however, if and to the extent that this Agreement is construed to be relative to the construction, alternation, repair, addition to, subtraction from, improvement to, or maintenance of, any building, highway, road, railroad, excavation, or other structure, project, development, or improvement attached to real estate, including moving or demolition in connection therewith, and therefore subject to Section 4.24.115 of the Revised Code of Washington, it is agreed that where such liability, claim, damage, loss or expense arises from the concurrent negligence of(i) the Port, and (ii) the Agency, its agents, or its employees, it is expressly agreed that the Agency's obligations of indemnity under this paragraph shall be effective only to the extent of the Agency's negligence. Such obligations shall not be construed to negate, abridge, or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any person or entity described in this paragraph. This paragraph shall not be construed so as to require the Agency to defend, indemnify, or hold harmless the Port from such claims, damages, losses or expenses caused by or resulting from the sole negligence of the Port. In any and all claims against the Port, by any employee of the Agency, its agent, anyone directly or indirectly employed by either of them, or anyone for whose acts any of them may be liable, the indemnification obligation of this paragraph shall not be limited in any way by any limitation on the amount or type of damages compensation benefits payable by or for the Agency, or other person under applicable industrial insurance laws (including, but not limited to Title 51 of the Revised Code of Washington), it being clearly agreed and understood by the Parties hereto that the Agency expressly waives any immunity the Agency might have had under such laws. By executing this Agreement, the Agency acknowledges that the foregoing waiver has been mutually negotiated by the parties. The Agency shall pay all attorneys' fees and expenses incurred by the Port in establishing and enforcing the Port's right under this paragraph, whether or not suit was instituted. 10. Comply with All Laws. The Agency shall at all times comply with all federal, state and local laws, ordinances and regulations,including but not limited to all environmental laws, which in any manner apply to the performance of this Agreement S-00319760 Page 3 of 10 Agreement. 11. Integration. This Agreement, together with the attached Exhibit A, constitutes the entire agreement between the Parties and unless modified in writing by an amendment executed by the Parties, shall be implemented only as described herein. 12. Governina Law and Venue. This Agreement shall be governed by the laws of the State of Washington. Any action arising out of this Agreement shall be brought in King County. 13. No Emolovrpent Relationship Created, The Parties agree that nothing in this Agreement shall be construed to create an employment relationship between the Agency and the Port. 14. No Entity Created, The Parties agree that nothing in this Agreement shall be construed to create a joint entity between the Agency and the Port. 15. Notices. Notices to the Port shall be sent to the following address: Port of Seattle Economic Development Division P. O. Box 1209 Seattle, WA 98111 Notices to the Agency shall be sent to the following address: City of Auburn Douglas Lein 25 W Main Auburn, WA 98001 Agreement S-00319760 Page 4 0110 16. Audits and Retention of Records. The Agency in and make all books, records and documents (the "Records") relating to the performance of this Agreement open to inspection or audit by representatives of the Port or Washington State during the term of this Agreement and for a period of not less than six (6)years after termination of the Agreement; provided, that if any litigation, claim or audit arising out of, in connection with or related to this Agreement is initiated, the Agency shall retain such Records until the later of (a) resolution or completion of litigation, claim or audit; or(b) six (6) years after the termination of this Agreement. 17. Amendment. This Agreement may only be amended by written agreement of the Parties. 18. Dispute Resolution. The Parties shall use their best, good faith efforts to cooperatively resolve disputes that arise in connection with this Agreement. IN WITNESS WHEREOF, the Parties hereto have executed this agreement as of the date first set forth above. PORT OF SEATTLE CITY OF AUBURN By: Paul Reed By: Nancy Backus Senior Manager, Purchasing Mayor, City of Auburn A . .. Signaturdi Signet a 1130(Z-0(1 Dated Dated Agreement S-00319760 Page 5 of 10 Port of Seattle. EXHIBIT A- PROJECT 1. Project Description: The City of Auburn, through this round of Port partnership funding, plans to continue to build upon projects from previous years. The majority of the partnership funding will again go to the operations, support and programing of Auburn's Small Business Incubator. The City will again, engage with other Community stakeholders, most notably the Green River College's Small Business Development Center, for instruction and one- on-one counseling services. Marketing of the Incubator promoting the benefits and value proposition of being a member of the Incubator will also continue to be a focus, however, a more targeted approach aimed towards already established in-home businesses will be used. The desired result to this approach will be a greater number of present (both mentally and physically) members, which in-turn will result in faster job creation and revenue generating "graduates" of the incubator program, ultimately producing results promised in round one. The City will also continue to build up the Buy Local Auburn project seeded by previous partnership funding rounds. The City will continue to build upon the user experience of the website in a variety of ways, while also building capabilities into the back-end of the system that will provide robust, yet specific data on the individual businesses. Finally, Auburn plans to utilize a small portion of the partnership funding to secure booth space at industry specific conventions and expos. Targeted industries will be those that help propel not only the Port of Seattle's Century Agenda, but also Auburn's Initiative of creating more family-wage jobs. Recruitment of businesses in the manufacturing and other skilled trades will achieve both the Port and City's initiative and build upon an existing industry cluster fostered by a rich talent base, proximity to a large cluster of customers and an overall business friendly environment. 2. Proiect Scone of Work; Outline project components, goal, desired outcomes and timelines using the table below (attach additional information if necessary): Agreement S-00319760 Page 6 of 10 Project or Project Outcome(s) and Estimated Metrics or component: goal(s): final deliverable(s): Completion: measures of success: Business •Continued •Create and direct a •10/31/2019 •An increase in Incubator programing and digital marketing the total number growth, operation of the campaign of members operations & existing Business specifically targeting (businesses) support. Incubator. existing home- slightly changing •Increase the based businesses the demographic total Incubator highlighting the to more actively member count features and engaged (businesses) to 20 benefits of being a members. memberships by member of Auburn's •Higher utilization focusing in on Small Business and activation of existing, semi- Incubator. the space. established •Create print and •Better synergies businesses in the other marketing and collaboration startup stage who pieces that highlight among all are growth the features and Incubator minded and benefits of members. possess growth belonging to the •Faster incubation potential. Incubator. periods, higher (brochures, posters, volume of tangible etc.) results • Establish (graduates,jobs relationships with created, revenues WeWork and other earned) co-working programs, College entrepreneurship programs and research labs. Modify the Incubator membership agreement requiring incoming businesses/member meet with Green River College SBDC business advisors at minimum on a .uarterl basis. •Business •Cultivate •Build upon and •10/31/2019 •Capital flow retention, business to continue to improve within the City, expansion & business activities upon Auburn's increased number growth in Auburn by ability to capture of goods sold and showcasing and track Auburn increased sales available business data, tax generation. resources, increase awareness •Greater utilization products, and and demonstrate the of the buy-local Agreement S-00319760 Page 7 of 10 services within value proposition of — site from both Auburn.resources, Auburn's buy-local businesses and products, and site to Auburn residents. services within residences and Reduction of Auburn. businesses, capital leakage •Foster buy- local •Further promote the within Auburn's synergy among value of the buy- retail trade area. business owners, local sites ease of 'Clearly and citizens to business license defined and escalate activities renewal, ability to accurate that increase jobs customer target and data on and tax base. its supply chain existing searching businesses and capabilities; while at industry clusters. the same time Movement encouraging (expansion and increased utilization contraction)of of the site from the businesses and public by continuing industry clusters, to promote buy- employment data local. and spatial footprint. Market voids will become more quickly and easily identifiable. 'Business 'Support the Port 'Offer business •10/31/2019 'Strengthened ties Attraction & of assistance between local Support Seattle's workshops, forums businesses and vision of and classes of all the City reducing creating skill levels the number of 100,000 new jobs (beginner, businesses through economic intermediate & relocating out of growth and advanced)to Auburn. 300,000 Port- established local •Partnering related jobs while businesses, start- among existing simultaneously ups and community businesses or supporting the members interested existing City of in entrepreneurship. businesses and Auburn's •Identify market start-ups, initiative to voids within the collaboration, grow family-wage targeted industries mentorship. jobs of aerospace, •Targeted within Auburn by: composites, additive meetings with 1)Increased focus and general companies that on support and manufacturing along would not only retention of with other skilled fulfill Port and City Auburn's existing trades. agendas but also businesses and 'Create a presence voids in the Agreement S-00319760 Page 8 of 10 vitality, diversity, at industry existing supply growth and tradeshows and chain. sustainability of exposes of those the Auburn identified industry economy voids by becoming 2)Business an exhibitor attraction within displaying Auburn's targeted industry value proposition clusters that will (available workforce, take advantage of location to buyers, Auburn's strength knowledge, of workforce, business knowledge and environment, location while at Innovation the same time Partnership zone, fulfilling voids in supply chain the local market. database(Buy Local Auburn))for company relocation, or satellite office. 3. Connection to Port of Seattle Interests: By offering services to promote and support entrepreneurship through the Incubator, support growth of existing businesses through training classes as well as a searchable database and recruitment of new businesses from out of state, provides and encourages the opportunity to create new jobs. The creation 400,000 Port and Port- related jobs in our region is a stated vision of the Port of Seattle. Further, creating living- wage jobs through organic growth or recruitment efforts will bring disposable income and an increased tax base. More disposable income means the purchase of more goods and other services. This will in-turn have a positive effect on the amount of goods coming through the Ports sea and airports. It also means a higher level of recreational activity flowing through the sea and airports, both of which fulfil strategic objectives of the Ports Century Agenda. 4. Project Budget: Identify each project budget category,total funds (including the monetary value of in- kind resources), Port of Seattle funds and City monetary and in-kind matching funds. Include the total funds from each column in the second to last row. Include the percentage contributions to the Port of Seattle's contribution in the last row. Category: Port of City City In-kind Total Funds Seattle Monetary Matching (Including In- Funds: Matching Funds: Kind): Funds: Category 1: $39,200 $19,600 $58,800 Business Incubator O.erations/Su.sort Services Cate!o 2: $8200 $4,100 $12,300 Agreement S-00319760 Page 9 of 10 Business Incubator Marketing Category 3: $16,000 $8,000 $24,000 Buy Local Auburn Maintenance/Support/Marketing Category 4: $1,600 $800 $2,400 Business Attraction Total Funds: $65,000 $32,500 $97,500 Percentage contribution to 100% 50% Port Funds*: *City monetary and in-kind matching funds must add up to at least 50% of the Port of Seattle's total contribution. 5. Collaboration with partners: Auburn will once again partner with the Small Business Development Center to provide one-on-one business consulting and instructional classes. The classes will cover a variety of business topics including: How to Start a Business in Auburn, Writing a Business Plan, Business Marketing, Business Financing and other subjects directed at varied levels of businesses; from start-ups to long established businesses. The Chamber of Commerce will partner with the City for continued promotion of business-to- business networking as well as the instructional classes,forums and workshops. 6. Use of consultants or contractors: Resident Incubator member; Fruition Planning and Management will be contracted to put together some of the non-digital marketing pieces specific to the Incubator as well as developing and producing of a Member Handbook which will outline the Incubator's policies, procedures and support resources. The handbook will be delivered to all existing Incubator members and given to new members as they become part of the Incubator. Local Auburn companies will also be utilized for the Incubator's Janitorial and IT support. Auburn intends to contract with Praece Consulting of Auburn for hosting, integration and further build-out of Auburn's supply chain database: Buy Local Auburn and contracted services will be rendered in conjunction with in-house resources for the creation and implementation of all digital and non-digital marketing strategies and materials. Agreement S-00319760 Page 10 of 10 Port of Seattle Email: jarndt@auburnwa.gov May 1, 2019 City of Auburn Josh Arndt 25 W Main Auburn WA 98001 Dear Mr. Arndt, Re: Agreement S-00319760 - 2019 ED Partnership Enclosed is your copy of the Agreement for 2019 ED Partnership which has been executed on April 30, 2019 on behalf of the Port. Purchase Order S-0000284381 has been issued for internal payment purposes. Please reference the purchase order number when invoicing the Port for payment of the monies awarded. We look forward to working with your organization. If you have any questions or concerns, please do not hesitate to give me a call. Regards, Sherry 14let44- Buyer, Purchasing PO Box 1209 Seattle, WA 98121 Cc: Dave, McFadden, Managing Director Economic and Trade Development