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ciffingwiff iKEPORT
CHIEF ADMINISTRATIVE OFFICE
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: October 17, 2011 Resolution#:6 P11- - 1 By-law#:
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Report#: CAO-009-11 File#:
Subject: CLARINGTON BOARD OF TRADE CONTRACT RENEWAL
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report CAO-009-11 be received;
2. THAT Council approve the renewal of the current contract with the Clarington
board of Trade for the delivery of economic development services for a period of
five years (2012-2016 inclusive) for an annual fee of$225,000 with a 2.5%
annual cost of living adjustment;
3. THAT the Mayor and the Clerk be authorized to execute an agreement with the
Board of Trade;
4. THAT all interested parties listed in Report CAO-009-11 be advised of Council's
decision.
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Submitted by:
Franklin Wu, M.A.O.M
Chief Administrative Officer
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CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO.: CAO-009-11 PAGE 2
1. BACKGROUND
1.1 The Clarington Board of Trade was incorporated in 1998 as a result of following
through with a key recommendation of the Mayor's Task Force on Economic
Development. The key mandate of the Board is to deliver economic
development service on behalf of the Municipality, and specifically, in the area of
business attraction and business retention.
1.2 In exchange for the service rendered, the Municipality entered into a contractual
agreement with the Board to provide an annual fee to offset its operating cost.
The fees were adjusted over the years and shown as follows:
2000 $75,000.
2001 $75,000.
2002 $75,000.
2003 $75,000.
2004 $90,000.
2005 $95,000.
2006 $100,000.
2007 $100,000.
2008 $103,000.
2009 $106,000.
2010 $110,000.
2011 $110,000.
1.3 The current contract expires on December 31, 2011 and would require a decision
of Council to continue the contractual arrangement and to determine the costs to
continue the said services. The Board met with the Chief Administrative Officer,
presented its Business Plan which contains a request for a five (5) year contract
renewal to reflect the following fee structure:
2012 $225,000.
2013 $230,625.
2014 $256,391.
2015 $262,800.
2016 $269,370.
2. COMMENTS
2.1 Since assuming the responsibility of economic development in 1999, the Board
of Trade has gradually evolved into an umbrella organization of all local business
REPORT NO.: CAO-009-11 PAGE 3
groups and associations. Working in concert with those economic development
partners, the Board has taken on many economic development and promotional
activities, spoken on behalf of all businesses in Clarington and worked closely
with municipal staff to facilitate new business development. In addition, the
Board has also established a strong presence within the Greater Toronto Area
economic development community.
2.2 From a performance perspective, the Chief Administrative Officer has the
privilege of working closely with the Board staff and is of the opinion that the
Board has more than lived up to the terms and conditions of the Economic
Development Contract. The Board staff has communicated well with municipal
staff and has reported regularly to Council on its work program and
accomplishment.
2.3 Our current model of economic development service being delivered by the
Board is very cost effective. The Municipality is getting excellent value for the
economic development services for a relatively small amount of fund allocated
for this very important municipal function. Compared to similar size
municipalities, Clarington's contribution to economic development services is
among the lowest, if not the lowest. While the Municipality is getting excellent
value for the work performed by the Board, the current underfunding will hamper
future economic development efforts.
2.4 A lot has changed since the Board of Trade was incorporated thirteen years ago.
Specifically, the Municipality has grown and there are increasing economic
development activities witnessing the several impending major projects such as
OPG Refurbishment, New Build, 407 and all the energy related business
opportunities. All these require the necessary staff resources to ensure that the
Municipality can capture all the potential business opportunities as well as to
REPORT NO.: CAO-009-11 PAGE 4
accelerate our effort. The Board staff has done a very good job in doing
whatever is necessary but it has become quite clear within the last few years that
the current staff resources would not be enough for the Board to carry out its
contractual requirement of attracting new business and retaining existing
business.
2.5 The Municipality's Strategy Plan has identified Economic Development as one of
the six (6) priorities for this term of Council. Supporting the Board's request is
not only consistent with this priority, but is critically important for the Municipality
to work towards the long term goal of reducing our residential tax burden.
3. CONCLUSION
The request from the board is very modest and is well supported by its Business
Plan. Our model of economic development services through the Board of Trade
has not only proven that it works, it is also the most cost effective for the delivery
of this important service and therefore should be preserved and enhanced. In
consideration of all the comments previously stated in this report, the Chief
Administrative Officer would recommend Committee and Council approve the
recommendations contained herein.
CONFORMITY WITH STRATEGIC PLAN
The recommendations contained in this report conform to the general intent of the
following priorities of the Strategic Plan:
X Promoting economic development
Maintaining financial stability
Connecting Clarington
Promoting green initiatives
Investing in infrastructure
Showcasing our community
Not in conformity with Strategic Plan
Staff Contact: Franklin Wu, Chief Administrative Officer
REPORT NO.: CAO-009-11 PAGE 5
List of interested parties to be advised of Council's decision:
Sheila Hall, Executive Director
Economic Development Officer
The Clarington Board of Trade
& Office of Economic Development
181 Liberty Street South, P.O. Box 434
Bowmanville, Ontario
L1C 3Z2