City of Oak Creek

Common Council Report

Meeting Date:  August 30, 2007

Item No.:  3

Recommendation:  That the Council adopt Resolution No. 10788-083007, authorizing a memorandum of understanding with the City of Franklin pertaining to the payment of the contract price of an agreement for professional services for the South 27th Street Corridor Plan Area Streetscape Design, to include branding, theme, logo and public relations activities and further addressing the funding source for such agreement.

Background:  At a special meeting on May 29th the Common Council heard a presentation by The Zizzo Group regarding the scope of proposed public relations and marketing services for the 27th Street corridor.  After the presentation, the Council authorized a member of the CDA to enter into contract negotiations in conjunction with a member of the Franklin CDA, with The Zizzo Group and HNTB to present a proposal subject to review and approval by the respective Common Councils, with direction that City staff prepare a Memorandum of Understanding (MOU) with respect to that service contract.

The proposal before you this evening is an MOU with the City of Franklin to cover one-half the cost of these marketing and public relations activities.  Please note that the contract itself is between the City of Franklin and HNTB, with The Zizzo Group as its subcontractor.  Like the earlier streetscape design, Oak Creek is committing to pay one-half the total cost of the marketing and public relations, which is currently identified in the MOU as $291,863.  In addition, HNTB will continue in their role as development advisor in implementing the streetscape plan, and administering the marketing and public relations subcontract, bringing the total cost of all services identified in the attached scope to $329,663 (one-half of which would be $164,831.50).  Please note that while many of the branding and creative items are one-time costs, there are ongoing public relations and account management functions that will likely continue past the term of this contract, and may require additional funding.

Fiscal Impact:  Although reimbursable through TIF #7, the initial cost of $164,831.50 must be accounted for in 2007 and 2008.  The City’s prior obligation to fund one-half of the streetscape plan ($110,000) is anticipated to be funded out of Fund 31 (Economic Development) in January of 2008.  Although additional funds have been transferred into Fund 31 to cover the City’s obligation, they will not be sufficient to cover the operational costs (which include our streetscape obligation) in addition to proposed marketing efforts for both the 27th Street corridor and citywide next year.

Additional interim  funding sources will need to be identified until such time as there is sufficient tax increment built up in TIF #7 to reimburse the costs for the streetscape plan and marketing.

Prepared by:                                                              Respectfully Submitted,

Doug Seymour, AICP                                               Patrick DeGrave

Director of Community Development                     City Administrator

Fiscal Review by:

Beverly A. Buretta, CMC

City Clerk