AGENDA #11e
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Resolution Authorizing a Performance Agreement with the Downtown Commission
DATE: June 24, 2002
The attached resolution would authorize a performance agreement with the Chapel Hill Downtown Commission, Inc., for services funded from the Downtown Service District tax. A draft agreement is included as Attachment 1.
In July 1989, the Council established a downtown service district to enhance the downtown area through promotional activities and supplemental services.
The downtown service district includes most properties with Town Center-1 and –2 zoning. The Council has excluded property used only for residential purposes.
State law allows either the Town or an organization under contract with the Town to provide the supplemental municipal services funded from service district taxes. Currently, the non-profit Downtown Commission provides services funded from the Downtown Service District tax through performance agreements with the Town.
On May 13, 2002, the Council adopted a resolution and ordinance authorizing the Manager to amend the performance agreement with the Downtown Commission and allocate $18,000 from the Downtown Service District Tax Fund balance to allow the Commission to pay for a retail marketing study of the downtown.
The Commission has submitted the attached work plan to summarize its activities during the year 2001 (Attachment 2). The Council previously received this document on March 26.
The present Downtown Service District tax rate is 6.2 cents per $100 of property value. The 2001-02 tax levy is $71,400, based on a net tax base of $115,264,000. We predict the same for the 2002-03 fiscal year. The Town normally budgets a 98% collection rate; therefore, we project revenue to be approximately $70,000 for both 2001-02 and 2002-03.
Services for the downtown have included:
The retail marketing study has begun with University Retail Group. Architects met with downtown merchants beginning earlier this month to discuss goals for the downtown. The Downtown Commission reports that the consultant will produce a marketing publication that the downtown can use to recruit tenants. University Retail Group will work with the Downtown Commission for the next two years to recruit targeted businesses and implement the plan.
The Chapel Hill/Orange County Visitors Bureau plans to open a visitor information center later in the 2002-03 fiscal year at 501 West Franklin Street. For this reason, the Downtown Commission will not need to operate a downtown Welcome Center at the Old Post Office/Court Building on Franklin Street.
We recommend that a performance agreement continue services substantially as in the past, with the addition of the provision for the retail marketing study. Under the Council’s plan for using Downtown Service District funds, the Town may provide or supplement any municipal service allowed under State law, plus marketing and promotion activities.
We believe that the Town should contract with the Commission to continue providing services substantially as in previous years. We are not aware of another organization that is prepared to provide the services to the downtown district or that has requested to do so.
That the Council adopt the following resolution, authorizing a performance agreement with the Downtown Commission for 2002-03.
A RESOLUTION AUTHORIZING A PERFORMANCE AGREEMENT WITH THE DOWNTOWN COMMISSION (2002-06-24/R-20)
WHEREAS, in July 1989, the Town Council established a downtown service district to enhance the downtown area through promotional activities and supplemental services; and
WHEREAS, the Chapel Hill Downtown Commission provides services to the district and is funded from the Downtown Service District tax, and operates under performance agreements with the Town; and
WHEREAS, services provided by the Downtown Commission include:
WHEREAS, the Downtown Commission has embarked on a new retail marketing study to recruit new tenants to the downtown area; and
WHEREAS, the Council considers renewal of a performance agreement with the Downtown Commission on an annual basis as part of the budget process;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager to enter into a performance agreement with the Downtown Commission for services in 2002-03, with the funding level to include the estimated revenue to be received from the Downtown Service District tax based on the tax rate adopted by the Council for 2002-03.
This the 24th day of June, 2002.
NORTH CAROLINA PERFORMANCE
ORANGE COUNTY AGREEMENT
This Agreement, made and entered into by and between the Town of Chapel Hill, c/o Chapel Hill Town Manager, 306 N. Columbia Street, Chapel Hill, NC, 27516, hereinafter referred to as “Town,” and the Chapel Hill Downtown Commission Corporation, 179 E. Franklin Street, Chapel Hill, NC, 27516, hereinafter referred to as the “Commission.”
WITNESSETH
WHEREAS, the Commission and the Town are committed to strengthening downtown Chapel Hill as an attractive and active center for economic, service, residential, and social functions;
NOW THEREFORE, in consideration of the above and the mutual covenants and conditions hereinafter set forth, the Town and the Commission agree as follows:
1. Town Support
The Commission will provide the services described in this Agreement. The Town Council proposes to allocate $70,000 from the Downtown Service District for services through this agreement in fiscal year 2002-03.
The Town does not obligate itself to provide any other support to the Commission this fiscal year or in any succeeding fiscal year.
If the Commission relocates its offices to another space, the Town and Commission will discuss amending this agreement to provide up to $10,000 of Downtown Service District fund balance to assist in costs of renovation of new office space.
2. Services of the Commission to the Downtown District
The Commission agrees to provide the services described in the Program of Work, attached hereto as Attachment A and incorporated herein by reference, to properties in the downtown Chapel Hill service district as amended, subject to the following clarifications of the Work Program:
The Commission will lease space at 179 E. Franklin Street, within the Orange County Court Building and Old Post Office. The Commission will use volunteer and/or paid staff from 10 a.m. to 4 p.m. Tuesdays through Saturdays. If the Commission plans to change the location of this space for any reason, including termination of the present lease, the Commission will notify the Town Manager by letter at least 60 days in advance if practical in light of notice given by the property owner. The Town shall have the right to renegotiate this performance agreement if the Manager believes that comparable service would not be provided due to lesser access or visibility of a planned new location.
The Commission shall hold public meetings of its Board of Directors at least once each quarter, and shall give public notice of such meetings in accord with the N.C. Open Meetings Law, including advance written notice to the news media at least 14 calendar days before the scheduled date of a board meeting. The notices shall include the time, date, location, and general purpose of the meetings.
Display of downtown business directories in public sidewalk areas shall be subject to applicable sign and other ordinances and may be subject to Town and/or State requirements for encroachment agreements.
The Commission or its employees or subcontractor will provide 13 hours per week of sidewalk cleaning. A shortage in the number of hours of cleaning in a given week will be made up in a subsequent week.
The Commission will manage and carry out promotional events in accord with the attached Program of Work and will obtain any permits required under the Town’s Noise Ordinance, etc. The Commission will not charge admission to any of these events.
The Commission will conduct a retail marketing study with University Retail Group during 2002-03. The consultant will produce a marketing publication that will be used by the Downtown Commission to recruit tenants. University Retail Group will work with the Downtown Commission for the next two years to recruit targeted businesses and implement the plan
3. Payments for Services
The Commission shall submit invoices with a report on services in a form satisfactory to the Town Manager.
Upon proper provision of services and supporting documentation, the Town will mail payments to the Commission within two weeks from the Commission’s invoice date.
If the Commission enters into an agreement with the Town for any services to be provided to the Commission by the Town, the Town may deduct its costs for such services from the above payments and recalculate the amounts of monthly payments. The Town shall notify the Commission of any revised monthly payment amount.
4. Financial Records and Reports
The Commission agrees to allow the Town to inspect its financial books and records upon reasonable notice, during normal working hours. In accord with N.C.G.S. 160A-536 and G.S. 159-40, the Commission shall arrange an independent audit of the Commission’s use of Town Downtown District monies as of the end of the 2001-02 fiscal year and shall provide a copy of the independent auditor’s report to the Town by January 1, 2003.
The Commission shall also have an independent audit performed for the year ending June 30, 2003, regarding Downtown Service District funds and shall provide a copy of this audit report to the Town.
5. Termination for Cause
In the event that the Commission shall cease to exist as an organization, or shall enter bankruptcy proceedings, or be declared insolvent, or liquidate all or substantially all of its assets, or shall significantly reduce its services during the term of this Agreement, or in the event that the Commission shall fail to render a satisfactory accounting as provided herein, then, and in that event, the Commission shall give written notice thereof to the Town Manager and the Town may terminate this Agreement, and the Commission will return all payments already made to it by the Town for services that have not been provided, or of which no satisfactory accounting has been rendered.
6. Indemnification of the Town
The Commission hereby agrees to hold the Town harmless against any claims or actions from damages, injury, or death relating to or arising out of the Commission’s use of Town funds or due to acts or omissions of the Commission’s officers, employees, contractors, or agents; and shall name the Town as an additional insured on the Commission’s general liability policies; and shall provide, upon the Commission’s execution of this agreement, a certificate of insurance with an insurer and in a certificate form satisfactory to the Town Manager.
The Town Manager may elect that the insurance coverage naming the Town as an additional insured party not be required to include activities off the premises of the Commission’s offices at 179 E. Franklin Street if the cost of such coverage would not be practical in the Manager’s judgment.
7. Non-Discrimination
In matters of employment, provision of services and contracting, the Commission agrees to act without regard to race, color, sex, religion, creed, age, national origin, affectional preference, sexual orientation, or disability.
8. Amendments
This Agreement may be amended by mutual agreement of the Commission and the Town.
9. Entire Agreement
This Agreement constitutes the entire Agreement of the parties hereto and shall be amended only by written modification executed by both parties.
IN WITNESS THEREOF, the parties hereunto cause this Agreement to be executed in their respective names.
This is the ________ day of __________, 2002.
TOWN OF CHAPEL HILL CHAPEL HILL DOWNTOWN
COMMISSION, INC.
____________________________________ _________________________________
Town Manager Chair
____________________________________ _________________________________
Town Clerk Attest
Approved as to form and authorization: ___________________________________________
Town Attorney
This instrument has been pre-audited in accord with the North Carolina Local Government Budget and Fiscal Control Act.
____________________________________
Finance Director