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HomeMy WebLinkAboutSOUTH FORT COLLINS BUSINESS ASSOCIATION INC - CONTRACT - AGREEMENT MISC - SOUTH FORT COLLINS BUSINESS ASSOCIATION INCPage 1 of 7 CITY OF FORT COLLINS GRANT AGREEMENT FOR MIDTOWN BUSINESS IMPROVEMENT DISTRICT THIS AGREEMENT is made and entered into this 6th day of November, 2015, by and between the CITY OF FORT COLLINS, COLORADO, a home rule municipality ("City") and The South Fort Collins Business Association, Inc., a Colorado nonprofit corporation ("SFCBA"). Whereas, the SFCBA has approached the City with interest in exploring the creation of a Business Improvement District (BID) in Midtown Fort Collins in accordance with the provisions of Business Improvement District Act, C.R.S. Section 31-25-1201, et seq. (“Act”); Whereas, in recognition of the public benefits of such a BID, the City is willing to provide financial assistance to the SFCBA to help with the organizational and start-up costs for the BID, with the understanding that such funding will be paid back to the City upon the formation of the BID from its first assessment collection and Whereas, the SFCBA has received a proposal from Centro, Inc. (“Centro”), a company that provides guidance and services for the creation of BIDs, to provide such guidance and services to SFCBA in the creation of a BID for Midtown Fort Collins; and Whereas, Centro has proposed a participatory process, involving property owners, business owners, and other stakeholders to finalize a BID plan for Midtown Fort Collins and will focus primarily on outreach and circulation of petitions for the creation of the BID, support through the approval process,, and the TABOR ballot process. NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises herein contained, the parties agree as follows: 1. SFCBA shall contract with Centro, or other similarly qualified company, to provide guidance and services in the creation of a BID in Midtown Fort Collins pursuant to the attached Scope of Work (“SOW”) attached as Exhibit A and incorporated herein by this reference and in accordance with all applicable requirements of the Act (“the Project”). 2. The City shall provide the SFCBA $30,000 financial assistance for execution of the Project in accordance with the following milestones (the “Project Milestones”): a. $10,000 upon successful completion of SOW Steps 1 and 2 – Finalization of the Midtown BID Operating Plan and petition collection. b. $10,000 following the first reading of the BID ordinance before the Fort Collins City Council. c. $ 7,000 thirty (30) days prior to the TABOR ballot. d. Up to $3,000 additional financial support may be available for additional work under the Project at the City’s sole discretion. 3. Upon successful completion of each Project Milestone, the SFCBA shall provide the City a Project progress report (the “Project Progress Report”) which will include a report-out of accomplishments, costs incurred, schedule, and anticipated future expenditures. DocuSign Envelope ID: 704CEEB5-12E9-43EF-893A-C1A4F4BAF093 Page 2 of 7 4. All payments by the City shall be subject to satisfactory completion of the Project Milestones, at the City’s sole discretion, timely submittal of the Project Progress Report, and submittal of a correct invoice. 5. Upon reasonable request, the City shall be granted financial audit access to review SFCBA – Centro records and accounting as it concerns the formation of the Midtown BID. SFCBA shall maintain, or ensure that it’s consultant Centro maintain such records for at least three (3) years following the term of this Agreement. 6. SFCBA agrees to reimburse the City for all of the financial support provided hereunder upon the formation of the BID and its first assessment collection. The City acknowledges such financial support is provided “at risk” in the event the Midtown BID is not established. 7. The creation of a Midtown BID is expected to take approximately eight (8) months. The Project Milestones and associated deliverables shall be completing in accordance with the following schedule: a. STEP 1: Finalization of BID Operating Plan and Petition 1-2 Months b. STEP 2: Petition Collection 2-3 Months c. STEP 3: Public Hearing and BID Creation 1 Month d. STEP 4: TABOR Ballot 2 Months 8. Any changes or modification to the Project SOW or this Agreement is subject to the parties’ mutual written agreement. 9. The City reserves the right to terminate this Agreement upon fifteen (15) days prior written notice. In the event of early termination by the City, the SFCBA shall be paid for all services specified in the SOW satisfactorily performed by Centro up to the date of termination. Such payment shall be SFCBA’s sole right and remedy for such termination. 10. This Agreement shall not be assigned without the prior written consent of the City, in its sole discretion. Any such assignment without the City’s prior written consent shall be deemed null and void and of no effect. 11. At all times during the performance of this Agreement, the SFCBA shall strictly adhere to all applicable federal, state and local laws, rules and regulations that have been or may hereafter be established. 12. The signatories maintain that to their knowledge, no City employee has a personal or beneficial interest whatsoever in the services described in the SOW. While there may be City employees that work with SFCBA as contemplated under this Agreement, no such employees are parties hereto or will receive payment for their private benefit through the receipt of the funds provided hereunder. 13. The SFCBA shall indemnify, save and hold harmless the City, its officers, employees and agents against any and all claims, damages, liability and court awards, including DocuSign Envelope ID: 704CEEB5-12E9-43EF-893A-C1A4F4BAF093 Page 3 of 7 costs, expenses and attorney fees incurred as a result of any act or omission by the SFCBA, its employees, agents, subcontractors or assignees arising from their performance under this Agreement or arising from the Project. 14. The City is subject to the Colorado Open Records Act (C.R.S. 24-72-101 through 24-72- 112) (CORA). Thus, documents and other materials received by the City and its employees under this Agreement from the SFCBA may be subject to public disclosure unless they fall within an exception under CORA. The City will deny the right of inspection of records which the City believes are considered under CORA to be trade secrets, privileged information, and confidential commercial and financial data, any of which SFCBA must clearly indicate at the time it is provided to the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement. THE CITY OF FORT COLLINS, COLORADO By: Gerry Paul Purchasing Director DATE: ATTEST: City Clerk APPROVED AS TO FORM: Deputy City Attorney THE SOUTH FORT COLLINS BUSINESS ASSOCIATION, INC. By: Printed: Title: CORPORATE PRESIDENT OR VICE PRESIDENT Date: DocuSign Envelope ID: 704CEEB5-12E9-43EF-893A-C1A4F4BAF093 11/12/2015 Luke McFedtridge President 11/12/2015 Page 4 of 7 EXHIBIT A SCOPE OF WORK OBJECTIVE The objective of this proposal, developed by Centro Inc., is to provide guidance and services in completing the creation of a Business Improvement District (BID) in Midtown Fort Collins in accordance with the provisions of Business Improvement District Act, C.R.S. Section 31-25- 1201, et seq. (“Act”), in order to finance district enhancements, services, programs and management. Our process will be a participatory one, involving property owners, business owners, and other stakeholders within the study boundaries. The overarching goal of our work will be to continue the work already underway and finalize a plan for Midtown Fort Collins that will strategically enhance and accomplish the long- term goals of the area by successful creation of a BID under the Act. Because a feasibility study, as well as a draft operating plan, has already been formulated for Midtown Fort Collins, this process will focus primarily on outreach and circulation of petitions for creation, support through City Council, and the TABOR ballot process. ABOUT BUSINESS IMPROVEMENT DISTRICTS The South Fort Collins Business Association (SCFBA) wishes to create a Business Improvement District (BID) to deliver the priorities identified by Midtown stakeholders, as well as achieve the long-term goals of the area. BIDs are a stakeholder-created special assessment district that allows for locally, community-funded improvements by an assessment on commercial property. The following chart sets out the main defining features of a BID: Business Improvement District (BID) What can it fund: Most any type of project that benefits the area, including but not limited to advocacy, marketing, programming, economic development, place making, infrastructure, maintenance and operations Who pays the assessment: Commercial property owners Creation process: ▪ Petition signatures from COMMERCIAL PROPERTY OWNERS representing more than 50% of assessed value and more than 50% of acreage. ▪ Public hearing and City Council vote ▪ TABOR ballot of electors, who are: --‐ Commercial property owners --‐ Lessees of commercial property As we continue to vet the draft operating plan, the specifics of what a BID can fund will be tailored to the needs of Midtown Fort Collins in the final operating plan delivered before the petition process begins. PROCESS AND APPROACH The following process and approach, consisting of four steps, sets out the primary work to be provided by Centro Inc., in coordination with legal counsel, to provide the expertise necessary to guide the ongoing engagement and consultation, finalization of the district plan, and the legal support to develop the district petition and ballot. DocuSign Envelope ID: 704CEEB5-12E9-43EF-893A-C1A4F4BAF093 Page 5 of 7 Step 1: Finalization of District Operating Plan and Petition Following additional engagement with SFCBA and other stakeholders, Centro will work with SFCBA to finalize how the district may operate, what it may fund, and how it may function. This will build off the information collected throughout the initial work with the SFCBA and Midtown Fort Collins stakeholders. After finalization of the plan, it will be vetted and tested with SFCBA and stakeholders, and will undergo initial review by both the City of Fort Collins and legal counsel. 1.1 Final District Operating Plan and Petition Development Once the final draft of the operating plan has been thoroughly vetted by SFCBA, stakeholders, the City of Fort Collins, legal counsel and other relevant agencies, Centro Inc. will develop the final district creation documents. 1.2 Final Plan Meeting and Review with SFCBA Following the plan review meeting(s), a revised and final draft of the district operating plan and petition will be developed and presented to SFCBA for final approval. 1.3 Formal Notification to City The consultant team will file formal notification to the City of Fort Collins regarding intent to move forward with the district petition, election and formal creation. 1.4 Develop Final Committee and Council Schedule Centro will work with City staff to identify a committee and council schedule to move the district creation through the City of Fort Collins’s municipal process. 1.5 Final City Review The City of Fort Collins will be provided with a final draft operating plan and petition for review and approval to ensure it meets appropriate requirements. 1.6 Final Legal Review Legal counsel will undertake a final review of the plan and initiate preparations for the property owner petition drive, including review of the draft petition and petition signature collection procedure. 1.7 Final Operating Plan and Petition Based upon SFCBA, stakeholder, City and legal review of the draft plan, the consultant team will incorporate revisions and prepare a final district operating plan and petition. Step 2: Petition Collection Once the final plan and petition are created and agreed upon, the process moves forward into petitioning. State statute sets out the requirements for petition signatures to be obtained, with over 50% of signatures representing both acreage and assessed value needed for submission. Centro’s role here is to help support SFCBA in successfully reaching out to and engaging with stakeholders to achieve the appropriate thresholds of support. 2.1 Petition Database Centro will be responsible for refining the stakeholder’s database obtained at the early part of the district creation process and refining it to identify impacted owners, individual assessments, and thresholds of support to meet legal requirements. The consultant team will provide this information to SFCBA, identifying a strategy to reach petition thresholds. DocuSign Envelope ID: 704CEEB5-12E9-43EF-893A-C1A4F4BAF093 Page 6 of 7 2.2 Petition Communications & Campaign Strategy Working together with SFCBA, Centro will prepare a communications and campaign strategy for the petition process. This will include, but not be limited to: ▪ Creation of a database that identifies inclinations of support for (and resistance to) the district. This chart will be color-coded by each individual property owner to identify willingness to sign the petition (green); uncertainty/more information needed (yellow); and known opponents to the districts (red). ▪ A packet of information, including an informational piece (see 2.3) will be created for each stakeholder to help clearly outline the benefits of the district and to clearly identify impact to that particular stakeholder. ▪ A petition distribution strategy will be developed and assignments will be made to SFCBA to go out and obtain signatures based upon the inclinations of support chart, and known relationships that SFCBA members have with their peers. ▪ Speaking points, information and engagement training will be provided by Centro to ensure SFCBA has adequate information to obtain signed petitions. A specific and detailed strategy will be developed once there is clarity around district development strategy. 2.3 Informational Piece Centro will work with SFCBA to prepare a summary informational piece that communicates the parameters and benefits of the districts. This piece can be used to summarize the operating plan and can be distributed with petitions. 2.4 Petition Launch Centro will work with SFCBA to officially launch the petition process. How this occurs will be decided as the district development process evolves, but it may include a series of meetings/gatherings designed to obtain signatures from key supporters. 2.5 BID Campaign Assistance Centro will monitor and provide assistance to SFCBA during the petition drive and will conduct regular meetings as well as be available for on-the-ground assistance. Centro will provide weekly reports tracking support towards meeting petition thresholds, will monitor petition assignments for property owners, and will develop strategies for approval of the district based upon feedback coming in during the petitioning process. 2.6 Submission of Completed Petitions to City of Fort Collins Once adequate petition thresholds are met for the district, Centro will work with SFCBA to submit the completed petitions and supporting documentation (e.g. what percentages we’ve achieved, etc.) to the City of Fort Collins for review, and will work with the team to address any invalid petitions that need clarifying. Step 3: Public Hearing and District Creation Throughout this phase of work, the consultant team will provide support to SFCBA as needed to get the districts passed through the Fort Collins City Council, including attending meetings, and providing speaking points and information for the meetings. 3.1 Creation Ordinance Development Centro will work together with legal counsel and the City Attorney to draft the Creation DocuSign Envelope ID: 704CEEB5-12E9-43EF-893A-C1A4F4BAF093 Page 7 of 7 Ordinance. 3.2 Committee Meetings and City Council Hearings Centro will participate in committee and council meetings required for district creation alongside members of SFCBA, and will help prepare presentation materials for these sessions as needed, including both PPT presentations and printed materials. 3.3 Creation Ordinance Upon positive vote of the Fort Collins City Council, the ordinance will be established for the district. Once this occurs, the consultant team will help transition SFCBA to the appointed board and begin preparations for the TABOR ballot. 3.4 Begin District Operations Immediately after the ordinance is passed, Centro will help ensure initial steps are taken to get the district up and running. 3.5 Organizational Meeting Following the formal creation of the district, the consultant team will work with the newly appointed board to hold the first organizational meeting of the district and establish an ongoing meeting schedule. 3.6 Notification of Assessment Centro will send official notification of the new district assessment or levy to the assessor and the City of Fort Collins. Step 4: TABOR Ballot While the district is legally created after the City Council passes the ordinance, it is not funded until a successful TABOR ballot is held. The consulting team will provide the following support to the board towards achieving a successful TABOR Ballot: 4.1 Identification of Voters The election would include voting from a broad group of district stakeholders, including affected property owners, lessees and residents. The consultant team will work with the board to identify – to the best of our knowledge – the voter list for the TABOR ballot. 4.2 Voter Outreach Plan Upon understanding who the voters are, the consultant team will also help develop a voter outreach plan to ensure electors are appropriately qualified and supporters are educated on the ballot process. This may include engagement such as informational meetings to educate voters on the ballot and an email and/or postcard campaign to encourage a positive ballot vote. A detailed voter outreach plan will be developed once there is clarity on the identification of voters. 4.3 Ballot Development and Legal Review The consultant team will develop the ballot materials and questions, qualify electors, monitor mail balloting procedures and ensure the process meets regulations of Colorado election requirements. 4.4 Administer and Complete the Election Process The consultant team will administer and assist in completion of the election process and certify the results. DocuSign Envelope ID: 704CEEB5-12E9-43EF-893A-C1A4F4BAF093