Item 4JM E M O R A N D U M
March 30, 2010
TO: Shana Yelverton, City Manager
FROM: Greg Last, Director of Economic Development
Jill Cherry, Marketing & Tourism Coordinator
Approve a Consulting Agreement with TIP Strategies, Inc. in the
SUBJECT:
amount of $75,000 for preparation of an Economic Development
and Tourism Strategic Plan, an element of the Southlake 2030
Plan
________________________________________________________________
Action Requested:
City Council approval of a Consulting Agreement with TIP
Strategies, Inc. in the amount of $75,000 for preparation of an
Economic Development & Tourism Strategic Plan.
Background
Information:
During preparation of the FY 10 budget, City Council directed
staff to budget for a consultant to prepare an Economic
Development & Tourism Strategic (EDT Plan).
Staff prepared and distributed a Request for Qualifications
(RFQ) for the EDT Plan and received seven submittals. Staff
then narrowed the submittals to a short list of three firms and a
committee composed of Mayor John Terrell; Councilmember
Laura Hill; Councilmember Brandon Bledsoe; Ken Baker,
Director of Planning and Development Services; Greg Last,
Director of Economic Development; and Jill Cherry, Marketing
& Tourism Coordinator, interviewed those firms. After the
interviews and reference checks we unanimously recommend
TIP Strategies, Inc. to perform the work.
TIP Strategies, Inc. is a privately held Austin-based economic
development consulting firm committed to providing quality
solutions for public and private-sector clients.Established in
1995, the firm’s primary focus is strategic economic
development planning. TIP stands for Theory Into Practice.
TIP will be working with Vicky Soderberg of Cygnet Strategies
to guide the tourism aspects of the project.
Attached is proposed Consulting Agreement with TIP
Strategies, Inc. to prepare the EDT Plan.
City Council
March 30, 2010
Page 2 of 3
Major aspects of the Agreement include the following:
Overall Goal: Consultant will create a successful, sustainable
and implementable Economic Development and Tourism
Strategic Plan through the development of goals, objectives
and measurable implementation policies which are consistent
with the City’s overall Comprehensive Plan and City Strategic
Plan.
The Scope of Work (Exhibit A - Page 4) includes components
for economic development as well as tourism.
An Anticipated Project Schedule (Exhibit B – Page 7) is also
included in the agreement and summarizes the anticipated
meetings, public input opportunities, and payments for services.
Financial
Considerations:
$75,000 was budgeted in the FY 2010 Strategic Initiative
Fund for the EDT Plan. The Agreement as proposed
provides the desired services within the budgeted cost of
$75,000. Additional services and/or trips to the City by the
consultants are identified on Page 9 of the Agreement
Strategic Link:
This item supports the following strategies identified in the
City’s Strategy Map.
C-4: Attract and keep top-tier businesses to drive a dynamic
and sustainable economic environment.
B-3: Enhance resident quality of life and business
sustainability through tourism.
Citizen Input/
Board Review:
This plan will be adopted as part of the City’s Comprehensive
Plan (Southlake 2030 Plan). The development of the EDT
Plan will be guided by the Economic Development & Tourism
Committee composed of the following:
Mayor John Terrell
Councilmember Laura Hill
Councilmember Brandon Bledsoe
Planning & Zoning Commission
Southlake Business Council Member – Mike Hutchison
Southlake Business Council Member – Tim Moorehead
City Council
March 30, 2010
Page 3 of 3
Legal Review:
This Consulting Agreement was reviewed and approved by
the City Attorney.
Alternatives:
Alternatives may include:
Approval as presented
Approval with amendments
Denial
Supporting
Documents:
Supporting documents include:
Consulting Agreement
Staff
Recommendation:
City Council approval of a Consulting Agreement with TIP
Strategies, Inc. in the amount of $75,000 for preparation of an
Economic Development & Tourism Strategic Plan.
CONSULTING AGREEMENT
This Consulting Agreement (the “Agreement”) is entered into as of the last date
TIP Strategies, Inc.City of
shown below by and between (“Consultant”), and
Southlake, Texas
(“Client”).
WHEREAS, the Client desires to retain Consultant for an Economic Development
and Tourism Plan.
WHEREAS, the Consultantagrees to provide certain consulting services to the
Client to assist with such endeavors.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, the sufficiency of which are hereby acknowledged, the parties
agree to the following:
1) Consultant agrees to provide the services set forth in the Scope of Work
attached hereto as Exhibit A. The estimated time frame for completion of the
work shall be as tentatively outlined in Exhibit B. The Consultant will subcontract
with Cygnet Strategies, LLC (Cygnet) to conduct all services related to tourism
development.
2) Client agrees to pay the sum of $75,000 for the services as noted above to
include travel and out-of-pocket expenses. Payments shall be by phase as noted
in Exhibit B. Out of the compensation to Consultant, Consultant shall pay the
fees and expenses of Cygnet.
The Consultant is available to provide additional services beyond those outlined
in the scope for additional fees to be negotiated separately.
3) Either party may terminate this Agreement if:
a. the non-terminating party shall be in default under any term, provision or
condition of this Agreement and fails to cure such default within ten (10)
days of receipt of written notice sufficiently describing the default; or
b. either party shall file or have filed against it any proceeding under any
bankruptcy, insolvency or other law affecting the enforceability of creditors’
rights.
4) Client acknowledges that Consultant participates in, advises, and/or manages
entities which may compete and conflict with the Client’s economic development
interests. Notwithstanding such competing interests and potential conflicts, the
Client acknowledges and agrees that such competition and conflicts are inherent
and unavoidable, that the benefits which the Client receives by obtaining the
TIP Strategies, Inc. – City of Southlake Consulting Agreement
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03/23/2010
services from Consultant outweigh the potential for such conflicts and that
Consultant may continue to participate, advise, and/or manage such competing
interests.
5) Consultant is an independent contractor and will be solely responsible for any
claims of its employees or subcontractors for their actions. In the event litigation
becomes necessary with respect to a breach or alleged breach of any of the
agreements contained herein, the party in whose favor final judgment shall be
entered shall be entitled to recover from the other party all costs and expenses of
suit, including reasonable attorneys’ fees.
6) If any term or provision of this Agreement shall, to any extent, be held invalid
or unenforceable, the remainder of this Agreement shall not be affected thereby,
and each provision of this Agreement shall remain valid and enforceable to the
fullest extent permitted by law.
7) All notices and/or payments required by this Agreement must be in writing
and sent by fax, hand delivery, overnight mail service or certified mail, return
receipt requested, to the addresses set forth below or such other address as
either party may designate in writing as the address for such notices.
8) Each party represents to the other party that it has (a) fully read and
understood the terms of this Agreement, (b) had the opportunity to seek the
assistance of its own legal advisor regarding this Agreement and its terms, (c) full
legal authority to enter into this Agreement and has taken all necessary legal
steps to obtain such authority, (d) equally participated in the negotiation and
drafting of this Agreement, and (e) not relied upon any statement, representation
or warranty not contained in this Agreement and/or the exhibits attached hereto.
9) This Agreement, including the attached exhibits listed herein, constitutes the
entire agreement of the parties with respect to the subject matter hereof and may
not be modified, amended or rescinded except by a written agreement signed by
both parties. No oral agreements, representations or warranties have been
made and/or relied upon.
10) Applicable Law and Venue. This agreement shall be interpreted in
accordance with the laws of the State of Texas and the venue of any legal action
relating to this Agreement shall lie in state district court in Tarrant County, Texas.
Remainder of this page blank
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11) This Agreement may be executed in multiple counterparts.
“CONSULTANT”: TIP STRATEGIES, INC.
Signed:____________________________________________
Name:_____________________________________________
Title:______________________________________________
Dated:________________, 2010
ADDRESS FOR NOTICE AND PAYMENT:
th
106 E. 6 Street, Suite 550
Austin, TX 78701
“CLIENT”: CITY OF SOUTHLAKE
Signed:_________________________________
Name:__________________________________
Title:___________________________________
Dated:________________, 2010
ADDRESS FOR NOTICE:
1400 Main Street, Suite 270
Southlake, Texas 76092
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Exhibit A – Scope of Work
Overall Goal
Consultant will create a successful, sustainable and implementable Economic
Development and Tourism Plan through the development of goals, objectives
and measurable implementation policies which are consistent with the City’s
overall Comprehensive Plan and City Strategic Plan.
Economic Development
The development of the Economic Development Plan for the City of Southlake,
Texas by Consultant shall include the following elements:
Determine the strengths, weaknesses, opportunities and threats for the City
of Southlake’s economic development efforts.
Identify the class, type and/or identity of target companies likely to relocate
operations to the City.
Identify the means to market to target companies and measure the success
of these marketing programs.
Develop a clear and understandable incentive policy that accomplishes the
business attraction and retention goals of the city. Inducements will be
based on items such as job creation, return on investment, quality of
business, and overall impact to the community.
Review and provide recommendations on the City’s current Business
Retention & Expansion Strategic Plan.
Tourism
The development of the Marketing Action Plan for Southlake, Texas by Cygnet
shall include the following elements:
1. Marketing Assessment
Cygnet will complete an assessment of the effectiveness of current marketing
efforts. Cygnet’s research team will help determine if Southlake stands out as
unique in your area. Cygnet will assess whether the marketing materials are
good enough to close the sale. If not, is it because there’s a visibility problem? Is
there a lack of activities? What are the impediments?
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2. On-site Assessment
A senior Cygnet staff member will visit Southlake to identify and research the
destination assets and begin identifying product development opportunities.
3. Development of the Action Plan
Cygnet will develop a marketing plan for Southlake by:
Reviewing accumulated research
Identifying primary and secondary markets including visitor characteristics
Identifying market niches
Creating product packaging concepts including ideas for events and
various promotional packages including partnerships with other
communities, hotels and attracts
Testing the feasibility of various marketing approaches to include
considering potential impacts upon occupancy rates and retail and
restaurant revenues
Conducting competitive research
4. Presentation of Final Plan and Workshop
The Southlake Marketing Action Plan developed by Consultant will include the
following elements, which will be in a “to-do list” format:
Introduction and scope of work defined
Destination and current marketing analysis
SWOT (Strengths, Weaknesses, Opportunities and Threats analysis)
Market niche identification
Marketing initiatives feasibility including discussion of the feasibility testing
of various ideas, including those not being recommended – Return on
Investment (ROI) is one of the feasibility tests
Marketing programs and implementations strategies, including, but not
limited to:
Internet and website
o
Public Relations
o
Advertising and collateral media
o
Partnership opportunities
o
Prioritization summary for HOT funds and programs (includes budgetary
information and ideas about measuring ROI)
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STAFF RESPONSIBILITIES
The City will be responsible for providing the following to the Consultant:
Trade data & market analysis information
Economic Development Department’s SWOT Analysis regarding economic
conditions
GIS information and data as needed
Set up meeting times and locations for the committee
Provide printed materials and copies for meetings as needed
Tourism marketing materials
Tourism marketing plans, budgets, HOT historical data
Current draft Wayfinding sign recommendations
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Exhibit B – Anticipated Project Schedule
1. Background / Research
A. Fees: 20% due upon execution of agreement
B. Existing Document Review
C. TRIP 1: Initial visit and kick-off meeting [April 26, 27, 29, or 30]
1. Kick-Off meeting: Mayor, Councilmembers, staff
2. Preliminary Interviews
a. City Council Committee Members
b. Stakeholders
1). Economic Development: TBD
2). Tourism: TBD
3. Conduct first EDT / LU Committee workshop
D. Research and Writing
1. Compile and review relevant data from client and others
2. Review of ED efforts
3. Review of Tourism marketing efforts
4. Development of preliminary market identification and begin
feasibility testing
2. Discovery
A. TRIP 2: [Week of May 24]
1. Initial Interviews
a. Councilmembers on Committee
b. E.D.: TBD
c. Tourism: TBD
2. Focus Groups [Likely just combine groups?]
a. E.D.: TBD
b. Tourism: TBD
3. Review findings to date with Client Team
B. Research and Writing
1. Refine and research targets based on prior findings and
stakeholder input
2. Refine marketing niches and compile ROI projections
C. Fees: 20% due upon completion of this phase
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3. Preliminary Recommendations
A. TRIP 3: [Tentatively June 22 or 23]
1. Additional interviews (if needed)
2. Second EDT / LU Committee Meeting / Workshop
a. Overview of research / background activities
b. Present Preliminary Recommendations
1). ED – TIP
2). Tourism – Cygnet
B. Draft Plan Preparation
1. Draft plan submitted for review and comment by EDT
Committee
2. Refine strategies based on findings and input from Client
Team
C. Public Outreach Presentation?
D.
Fees: 20% due upon completion of this phase
4. Public Outreach
A. SPIN (Southlake Program for the Involvement of Neighborhoods)
[August 10]
1. Public presentation of recommended Plan [Staff]
2. Solicitation of input
B. Southlake Business Council [August 18]
1. Presentation of Plan [Staff]
2. Solicitation of input
C. Incorporate any recommendations deemed appropriate by CC
Committee members
D. Fees: 10% due upon completion of this phase
5. Final Recommendations & Approvals
A. Prepare final plan and update presentation
B. Planning & Zoning Commission (Public Meeting) [Sept 9]
1. Presentation of Plan [Consultants]
2. Public Hearing
3. Recommendation to City Council
C. City Council [Sept 21]
1. Presentation of Plan [Consultants]
2. Plan revisions [If needed]
3. Adoption
4. Fees: 20% due upon completion of this phase
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6. Final Deliverables
A. Ten (10) copies of the bound report (vertically oriented, 8.5” x 11”)
B. Editable “Word” version of report
C. PDF version of report
D. PowerPoint presentation of Final Report
E. Fees: Final 10% due upon completion of this phase
7. Additional Services
A. Additional Consultant trips to City: There would be an additional fee
of $2,500 for each additional trip to the City for trips of 1 to 1 ½
days where two or three meetings could be conducted. In addition,
Client also agrees to reimburse Consultant for direct travel and out-
of-pocket expenses (no handling fees) related to these additional
trips, not to exceed $7,500. Consultant will submit copies of paid
invoices for all fees and expenses.
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