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AGENDA REPORT <br />CITY OF COLTON <br />Office of the City Attorney <br />For City Council Meeting of <br />September 20, 1994 <br />September 14, 1994 <br />TO: HONORABLE MAYOR AND CITY C UNCIL <br />FROM: Julie Hayward Biggs, City Attorney <br />SUBJECT: Agua Mansa Economic Development/Utilities Commission Recommendation <br />Background: <br />At the Utilities Commission meeting held on September 12, 1994, the Commission <br />discussed at some length the proposal submitted by BEETEC regarding promotion of the Agua <br />Mansa Enterprise Zone as a location for a newspaper recycling facility. The Staff reports <br />prepared for the Utility Commission are attached for your review. It was the determination of <br />the Commission that while the City Council may wish to consider retaining a consultant to <br />encourage this kind of development in that location, the Council should comply with the City's <br />policy that requires Requests for Proposals or Request for Qualifications before making any <br />commitment to BEETEC. <br />The Utilities Commission expressed some concern that the role that BEETEC has <br />assumed with regard to recruiting MacMillen Bloedel to Colton may properly be a function that <br />City staff could and should address directly. Nevertheless, in recognition of the effort that <br />BEETEC has made to recruit this company to the City, there was some sense that it might be <br />appropriate to consider retaining the services of that company, or of another company similarly <br />oriented, to promote business development in the City. <br />Accordingly, it was suggested that the City may wish to consider either a standard <br />consulting contract, providing for payment on an hourly or monthly basis to a consultant selected <br />by the City Council, or a contingent fee arrangement that would compensate a finder for delivery <br />of a business enterprise to the City. A non -contingent fee-based consulting agreement would <br />require payment regardless of whether the consultant actually procures a business enterprise for <br />the City. A contingent fee arrangement would be predicated upon actual delivery to the City <br />of a business enterprise and a commitment by that business to locate a facility here. In either <br />case, the City would be expending funds to recruit economic development rather than relying <br />solely on staff. <br />