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Recommendation to Approve a Nine Month Agreement in the Amount of $148,085 with Strategic Economics to Prepare an Economic Development Strategic Plan for the City of Alameda, and Reappropriate $50,000 from Unspent Fiscal Year 2015-16 Funds for the Agreement. (Community Development 256)
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To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Approve a Nine Month Agreement in the Amount of $148,085 with Strategic Economics to Prepare an Economic Development Strategic Plan for the City of Alameda, and Reappropriate $50,000 from Unspent Fiscal Year 2015-16 Funds for the Agreement
BACKGROUND
In July 2000, the Alameda City Council approved the Economic Development Strategic Plan (EDSP) as the City’s long-term (10+ years) roadmap to achieving economic growth, while at the same time improving the quality of life of Alameda residents and employees. In 2007, the City conducted a review with the Council, acting as the Community Improvement Commission, adopting an updated EDSP in January 2008. Among other things, the EDSP led to the restoration of the Alameda Theatre, the development of Alameda Landing, and the redevelopment of Bridgeside Shopping Center, now anchored by the Nob Hill supermarket.
Since then, many changes and events have occurred in the local, regional, and national economies and in public policies, which compel preparing a new EDSP that builds on the economic development work already completed or underway in Alameda. In its two-year budget for Fiscal Years (FY) 2015-17, the City Council budgeted funds to prepare a new EDSP, with specific goals and objectives to strengthen Alameda’s business climate and its place in the East Bay economy. The economic development goals contained in the new EDSP will also be incorporated into the General Plan through a General Plan Amendment. The EDSP is expected to be completed by June 2017.
DISCUSSION
The City issued a Request for Proposals (RFP) on March 28, 2016, to solicit proposals from qualified teams consisting of professionals specialized in real estate economics, commercial real estate and marketing, community engagement and consensus-building, and other relevant professional skills to produce the EDSP. The RFP was posted on the City of Alameda’s website and mailed directly to nine consulting firms.
Selection Process
The City received three proposals, which were reviewed by a selection committee that included staff from the Community Development Department. The selection committee recommended interviewing one of the firms, Strategic Economics. This was based on criteria that took into consideration the proposer’s past experience, the quality and experience of the project manager, the team’s understanding and proposed approach to the project, and the ability to deliver the proposed scope of work within the proposed budget and schedule. Strategic Economics was interviewed by staff from the Community Development Department and the Community Development Director for the City of Dublin, who is also an Alameda resident.
The interview panel unanimously agreed to recommend Strategic Economics to prepare the EDSP. Strategic Economics presented a highly qualified team that provided a clearly defined and comprehensive proposal, focused on strategic planning, identifying commercial opportunities, increasing the City’s tax base, place making, building on the City’s existing economic base and developing community consensus. Strategic Economics has extensive experience in preparing economic development strategies as well as conducting employment, retail, and fiscal analyses for local governments seeking to update their plans.
The Strategic Economics team has recent experience with municipal economic development studies, including an EDSP underway in Cupertino, and completed EDSPs for the cities of Pleasanton, Rancho Cucamonga, and San Carlos. Strategic Economics’ background reports and strategic plans present technical information in a way that can be understood by a diverse audience, with a focus on implementation-oriented actions.
For this project, Strategic Economics is teamed with MIG, Inc., which has extensive experience in designing inclusive public engagement strategies and is familiar with the Alameda community. MIG is currently facilitating the workshops and focus group meetings for Alameda’s Citywide Transit and Transportation Demand Management (TDM) Plans.
In order to include community stakeholders, an EDSP Ad Hoc Committee will be established to oversee the project and provide guidance to both staff and the consultant team throughout the project’s timeframe. One of the members of this Ad Hoc Committee will be from the Mayor’s Economic Development Advisory Panel.
Scope of Work
Strategic Economics will perform the tasks summarized below and detailed in the proposed contract, attached as Exhibit 1. Strategic Economics’ work will be performed in six tasks.
Task 1: Review existing documents and hold a kick-off meeting. Strategic Economics will review previous Alameda economic development policies and reports, followed by a project initiation meeting with staff and the Ad Hoc Committee to discuss these documents, current economic development activities, and how they will inform subsequent tasks in the scope of work.
Task 2: Citywide demographic and Economic Analysis. Building off of previous analyses and data, Strategic Economics will fill in any gaps and provide updated information on Alameda’s economic and market position relative to the East Bay region and the greater Bay Area overall. The major components of this task include:
• Analysis of industrial and commercial sectors, commercial real estate markets, and retail sectors;
• Analysis of the role of tourism in Alameda’s overall economy, and its potential role in driving future economic growth in the City;
• Stakeholder focus groups, such as key business representatives, retailers, commercial brokers, developers, hotel operators, community leaders, and City Department Directors and Division Managers;
• A summary of Alameda’s strengths, weaknesses, opportunities, and threats (SWOT analysis), which will identify specific industries and tenants types that might be a good fit for Alameda; and
• A background report that will provide the factual foundation for creating the EDSP. The background report will be designed for a public audience, incorporating graphics, charts, and tables that clearly explain Alameda’s economy. A user-friendly executive summary will highlight the most significant findings and set the stage for public discussion.
Task 3: Community Engagement. The Strategic Economics team will design and facilitate a multi-faceted community engagement program, including social media platforms and two community visioning workshops, to support this project.
Task 4: Prepare draft EDSP and Implementation Plan. Based on comments received during the public engagement process, Strategic Economics will prepare an administrative draft of the EDSP. The plan will describe the economic context, existing conditions, and future changes necessary to maintain Alameda’s competitive advantage in creating, supporting, and attracting businesses, diversifying the local economy and maintaining fiscal health. The Implementation Plan will identify specific actions, a lead organization or department, potential funding sources, supporting agencies and partners, and time frames for completing the actions.
Task 5: Meetings and communication with City. Strategic Economics will participate in regularly scheduled meetings with City staff and the Ad Hoc Committee.
Task 6. Final EDSP and Implementation Plan. The Strategic Economics team will incorporate comments from the City Council, Planning Board, EDSP Ad Hoc Committee, and community members to deliver a final EDSP for Planning Board endorsement and City Council approval.
Next Steps
Staff is recommending approval of the agreement with Strategic Economics to prepare an updated EDSP. The new EDSP will provide City with a five-year strategy for implementing its economic development program. If the contract is approved, the City and the Ad Hoc Committee will then meet with the Strategic Economics team in July to kick-off the project.
FINANCIAL IMPACT
There is no impact on the General Fund. As this contract was previously scheduled to be executed in FY 2015-16 and $50,000 was allocated in the FY 2015-16 budget, a reappropriation of these funds is proposed to ensure full funding for the contract. FY 2016-17 funds from the FISC Fund (256), including the proposed reappropriation, will be available for this project. Strategic Economics’ contract is in the amount of $148,085.
ENVIRONMENTAL REVIEW
Approving an agreement with Strategic Economics to prepare an Economic Development Strategic Plan is not a project under the California Environmental Quality Act because it is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment (CEQA Guidelines, section 15378 (b) (5)) and therefore no environmental review is required.
RECOMMENDATION
Approve a nine month agreement in the amount of $148,085 with Strategic Economics to prepare an Economic Development Strategic Plan for the City of Alameda, and reappropriate $50,000 from unspent fiscal year 2015-16 funds for the agreement.
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Lois Butler, Economic Development Manager
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Contract