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HomeMy WebLinkAbout25A - AGMT - ED PLANREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 3, 2015 TITLE: RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended © As Amended © Ordinance on 16' Reading El Ordinance on 2n° Reading ❑ Implementing Resolution ® Set Public Hearing For CONTINUED TO Authorize the City Manager and Clerk of the Council to execute an agreement with Rosenow Spevacek Group (RSG), subject to non - substantive changes approved by the City Manager and City Attorney, to develop a citywide Economic Development Strategic Plan (EDSP), for a one - year period ending on February 1, 2016, in the amount not to exceed $120,000. On March 18, 2014, the City Council adopted the Santa Ana Strategic Plan, which has established specific goals, objectives and strategies to guide the City's major efforts during the next five years. Goal 3 Economic Development — Strategy 1 states that the City will `Implement a comprehensive Economic Development strategy to ensure that Santa Ana is a City with a vibrant business climate that is accessible, user friendly and welcoming to all residents and visitors." The purpose of developing an economic development strategic plan is to ensure that economic development initiatives are planned and focused appropriately to maximize the impact on the City. The EDSP will provide a road map that will define long -range goals and objectives for business development, growth, and attraction. The EDSP will establish a technical framework for proactive programs to enhance the business climate and an implementation plan to show how city -wide planning and specific priority recommendations meet the needs for higher- paying jobs, job training, and an increased quality of life for all residents and neighborhoods. The EDSP will also build upon the planning efforts that have occurred to date or are currently in process (i.e. General Plan Update and Harbor Specific Plan). On October 1, 2014, the City released a Request for Qualifications (RFQ) to develop a citywide economic development strategic plan. The City received eight statements of qualifications from consultants to develop the EDSP. Utilizing a comparative matrix to evaluate the consultant team's knowledge and experience with developing economic development strategic plans, 25A -1 Economic Development Strategic Plan February 3, 2015 Page 2 knowledge and familiarity of the local community and economic environment, the proposed approach to plan development and experience in community outreach, staff recommended four consultant firms to be interviewed. Acting as the City's steering committee in the development of the EDSP, the City's Economic Development Taskforce, comprised of 11 representatives from the local business community, interviewed the four consulting firms at the December 8, 2014 Taskforce meeting. RSG received the highest average score of 87. A summary of the Taskforce ratings are below: Consultant Applied Development Economics Average • 0® points 67 HR &A 78 Placeworks 79 RSG 87 Attached is a proposal from RSG which includes the scope of work to develop the EDSP. It is anticipated that the EDSP process will take six months to complete with an additional two to three months to prepare the document for the City Council. Staff will provide the Mayor and City Council with periodic updates on the progress of the Plan. Based on the ratings by the City's Economic Development Taskforce, it is recommended that the City enter into an agreement with RSG to develop the new citywide economic development strategic plan. Upon approval of the agreement by City Council, City staff will schedule a kick -off meeting to further define and enhance the Scope of Work for developing the EDSP. During this discussion, a more detailed community outreach schedule will be established. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objective #1, (Implement a comprehensive Economic Development Strategy to ensure that Santa Ana is a City with a vibrant business climate that is accessible, user - friendly, and welcoming to all residents and visitors), Strategy A (complete a comprehensive Economic Development strategy). FISCAL IMPACT Funds are budgeted and available in the Community Activities, Contract Services — Professional Account (01105810- 62300). 25A -2 Economic Development Strategic Plan February 3, 2015 Page 3 Executive Director Community Development Agency KR/MM /sb Exhibit: 1. RSG Proposal 2. Agreement APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez S� Executive Director Finance & Mgmt. Services Agency 25A -3 25A -4 �. 1 9 if ! s w€ ♦ -1 4: O`. Introductory Letter Qualifications........................................................................................................... ............................... 3 RelatedExperience ................................................................................................. ............................... 5 ProjectTeam ........................................................................................................... ............................... 9 Approachand Workplan ........................................................................................ ............................... 17 Schedule and Fee for Service ............................................................................... ............................... 23 L i F? BETTER COMMUNITIES. BOLDER FUTURES. October 31, 2014 ROSENOW SPEVACEK GROUP INC. 809 WEST 4TH STREET SANTA ANA, CALIFORNIA 92701 -4502 Mr. Marc Morley CITY OF SANTA ANA— COMMUNITY DEVELOPMENT AGENCY 20 Civic Center Plaza — M25 Santa Ana, CA 92701 Dear Mr. Morley: T 714 5414585 F 714 5411175 E INFO @WEBRSG.COM WEBRSG.COM In response to your Request for Qualifications (RFQ), enclosed please find Rosenow Spevacek Group's (RSG's) Proposal for Services to prepare an Economic Development Strategic Plan (EDSP) for the City of Santa Ana (City). RSG understand that the City recently went through a comprehensive strategic planning process to identify goals, objectives, and strategies to guide City policies over the next five years. The outcome of this process was the Santa Ana Strategic Plan, which identified the need for an EDSP. RSG is uniquely qualified to assist the City in preparing an EDSP that meets the City's goals of providing: • A technical framework for proactive programs that enhance the business climate; and An implementation plan illustrating how city -wide planning and specific priority recommendations meet the needs for higher - paying jobs, job training, and an increased quality of life for all residents and neighborhoods. RSG is a creatively- charged counterpart to over 90 California public agencies. We work with people responsible for creating vibrant places to accomplish their economic development, fiscal health, and real estate goals. RSG's products and service offerings are built around our five core competencies: • Fiscal Health • Economic Development • Real Estate • Housing • Healthy Communities RSG is located in downtown Santa Ana and is one of the many businesses that help to support the economic base of the City. In a public - private partnership with the former Redevelopment Agency, RSG renovated an historic building and relocated our company headquarters from northern Santa Ana to downtown a decade ago, where we have witnessed the transformation of the area first hand, including the re- emergence of an entrepreneurial community. As a community member, we can apply a high level of insight and native knowledge to the City's efforts to boost the local economy. Our proposal includes a depiction of the qualities we believe make us an outstanding firm to work with, descriptions of selected engagements that have provided us with the experience necessary to provide services, our proposed scope, and fees for service. FISCAL HEALTH ECONOMIC DEVELOPMENT REAL ESTATE, HOUSING AND HEALTHY COMMUNITIES 25A -6 We look forward to discussing our qualifications and proposed work plan in greater detail, and look forward to the chance to work with the City again on this exciting endeavor. In the meantime, if you have any questions, please do not hesitate to contact us at 714.316.2100. Sincerely, ROSENOW SPEVACEK GROUP. INC. *AX Alexa Smittle Principal Tara Matthews Principal CalBRE Corporate Broker License #01930929 25A -7 I. QUALIFICATIONS In 1979, RSG started providing real estate and economic development services to a few clients. More than thirty years later, improving the social and economic wellbeing of communities is not only at the core of our business, it is the driving force behind our passion for the work we do. We like it, and we excel at the mechanics of it: identifying economic drivers, analyzing the real estate marketplace, implementing specific plans, financing projects, and growing and retaining local businesses. Our results are straightforward, functional, and effective. Moreover, we arm our clients with insight and intelligence so that they are empowered to make decisions and transform communities. RSG is the City's best partner for this engagement because: Years of experience and expertise allow us to be efficient, effective, and insightful • We are progressive and forward looking, sharing our experiences and knowledge of the fluid local economy and municipal resource base. From workforce development to affordable housing to infrastructure — we help our clients understand how these forces interact even in the simplest of projects. • Our staff is outstanding. While a core team is assigned to this engagement, it has the full backing of all RSG resources including 18 professionals, a real estate brokerage license, and multiple tools and databases. • Well- respected in the municipal consulting industry, other planning and consulting firms regularly reach out to us to partner on projects — in other words, we not only play well with others, we enjoy We recognize our job is to serve you and the community, and it's a role we treasure. We take pride in advising public and private clients to help make strategic investments and improvements in their communities. Our related work products generally fall into the following categories. Market Analysis RSG's real estate brokerage background provides our clients with sophisticated tools and insight on real estate trends and opportunities. We do our homework, and never rely on theoretical models that overlook local influences and preferences. As an alternative to traditional market studies, RSG is working to pioneer the development of trends analysis; market studies that analyze local economic drivers over a long period of time in order to align strategic planning with land use policies. Economic Development Our economic development work is collaborative, designed to help clients make progress, not just plans. While the process is neither exact nor fully predictable, our objective in any economic development 25A -8 engagement is to ensure that the short -term gains and easier wins help fuel long -term strategies that withstand the test of time. Business Development and Business Retention Starting from a community's core competencies, and expanding to understand the regional marketplace, RSG is able to identify growth and diversification opportunities that create sustainable sources of jobs and municipal revenues. RSG has planned, designed, and implemented marketing and new business solicitation campaigns for our clients. Advisory Committee and Community Outreach Stakeholder support for community development and redevelopment is more essential now than ever before. RSG regularly coordinates and leads community workshops with residents, property owners, and businesses. Project and Program Implementation Many of our clients retain RSG as contract staff to manage the day -to -day activities of economic development and redevelopment programs, including new development projects, rehabilitation projects, business improvement projects, business recruitment, site selection and acquisition, and financing. RSG also assists public clients in implementing programs such as fagade improvement programs, branding and marketing campaigns, infrastructure development programs and business solicitation. If additional resources are needed to implement your project or program, RSG can help identify outside funding sources and write the grant application. Project Feasibility RSG is well respected by cities across the state to conduct market assessments and project feasibility analyses, site selection and evaluation, and pre - entitlement services. Our background working with over 100 communities lends credibility to developers as well as cities. Financing Development RSG is a recognized expert in analyzing the economics of projects such as residential single - family rehabilitation and mixed income apartments, as well as commercial uses including retail stand -alone buildings, outlet centers, lifestyle centers, office towers, industrial condos, gas stations, ground leases, digital billboards, data centers and fulfillment complexes. We specialize in public- financing structures — helping communities know when it's reasonable to provide financial assistance and when a project's profitability meets current market yields. 25A -9 2. RELATED EXPERIENCE RSG's consultant team has extensive experience working on real estate performance, pro forma analysis, development feasibility, demographic trends, retail leakage, and implementation efforts that capitalize on strengths and reduce barriers. Over the past 35 years, RSG has analyzed nearly $50 billion in real estate development projects, developed numerous trend analyses, tracked and projected market demand, and maintained a progressive outlook on local economics, including the shift from sales -tax driven efforts to economic rainforests that are dynamic and interconnected despite municipal boundaries. CONSUMER ANALYTICS AND RETAIL MATCHING STUDY - CITY OF SAN GABRIEL As the oldest settlement in the greater Los Angeles area, San Gabriel has been a city of transformation for 200 years. Currently a true melting pot, the city boasts functioning three -story retail that is home to high -end jewelry stores, dozens of massage parlors, some of the most renowned Chinese restaurants in the state. Other traditional real estate anomalies abound, with land values often far in excess of supported rents, and not a Starbucks in sight. The City engaged RSG to help understand what was happening in the retail real estate marketplace, and strategically move forward with retail attraction and business development that made sense to this unique community. RSG conducted thorough research on the current market conditions in San Gabriel identifying retail spending patterns, leakages by product type, and related demographic trends. This assessment was supported by a series of pro formas identifying the financial implications of changes to properties or buildings as needed. A windshield survey of the existing retail centers and conditions in the city was also performed to identify characteristics such as size, ownership, parking, tenants, quality, zoning, and other pertinent items. Coupled with community outreach and an external marketing strategy, the City is ready to move forward with a progressive new image and development outlook that builds upon its strengths of density and diversity. Contact: Camille Paton, Community Development 626.308.2800 RSG Staff: Alexa Smittle, Jane Carlson, and Dima Galkin ECONOMIC DEVELOPMENT CONSULTING SERVICES - IRWINDALE RSG completed a five -year economic strategic plan for the City of Irwindale in 2011 after a year -long development process involving long- range, comprehensive market research and analysis, and intensive business stakeholder interviews and outreach meetings. Research and data results indicated that "economic gardening" was an appropriate strategy in Irwindale. Economic gardening is a growing trend in local government that prioritizes caring for and feeding existing businesses in the community as well as 25A -10 growing new revenue streams. RSG was hired to provide contract professional staffing and economic development implementation services immediately following the adoption of the economic strategic plan. Contact: John Davidson, City Manager 626.430.2217 RSG Staff: Jim Simon, Tara Matthews, and Suzy Kim VILLAGE AT TOPANGA FEASIBILITY AND FISCAL IMPACT ANALYSIS - CITY OF LOS ANGELES The Office of the Chief Legislative Analyst for the City of Los Angeles contracted with RSG to conduct a Feasibility and Fiscal Impact Assessment for the Village at Topanga Westfield Mall ( "Project ") in 2012. The Project feasibility conclusion, which indicated the developer was facing a significant funding shortfall, was based on an estimate of construction costs and the project valuation using the direct capitalization, discounted cash flow and internal rate of return methodologies. To assist in the development, the City structured a subvention payment not to exceed 50% of the net new site - specific tax revenues generated by the Project over a 25 -year period. Based on RSG's analysis, the City Council approved a subvention of up to $25 million in exchange for expediting the Project into a single phase, and generating about 1,300 new permanent jobs for the West Valley. Contact: Ivania Sobalvarro, Office of the Chief Legislative Analyst 213.473.5745 Oscar Ixco, Office of the Chief Legislative Analyst 213.473.5705 RSG Staff: Jim Simon, Tara Matthews, and Brandon Fender PROPERTY DISPOSITION AND MARKETING PLAN (GENERAL OFFICE AND RETAIL) - CITY OFATASCADERO The former Redevelopment Agency of the City of Atascadero owned a high -value property former utilized as a temporary city hall after an earthquake damaged the historic city hall a number of years ago. The property has been vacant for some time. The City retained RSG to determine the uses that would result in the maximum value or sales price for the property as well as uses that would act as a catalyst for economic development in the community. RSG conducted a market study, identified feasible potential uses for the property, completed pro forma analyses to determine which uses would be financially feasible, and finally presented 3 development options for the property. RSG staff identified the strengths and unique character of the community in concert with the market study. The market analysis determined that uses that reach consumer outside of the city limits (i.e., regional draw) were the most effective option for the property. The final report also contained a marketing plan for the effective disposition of the property. The report was presented to the City Council and a community /council workshop is planned for January 2015. Contact: Jeri Rangel, Director of Administrative Services 1Y01-11EININCERN RSG Staff: Hitta Mosesman and Dima Galkin GRAND AVENUE LOS ANGELES - CITY OF LOS ANGELES RSG was retained by the Office of the Chief Legislative Analyst in February 2014 following the approval bey the Grand Avenue Authority (GAA) of the Related Companies /Gerhy Partners conceptual site plan and 4h amendment to the disposition and development agreement. Due to the GAA's aggressive schedule that compels the developer and City to execute additional agreements conditioned upon financial analysis, RSG had less than 60 days to commence and deliver a draft report on this iconic, $950 million 25A -11 mixed -use project. Preliminary findings were delivered approximately 3 weeks after receipt of information, shared with the developer the following week, and a refined analysis and comprehensive draft report was presented within less than 2 months. The report evaluated the financial feasibility and fiscal and economic benefits of the project for both the City and County of Los Angeles, and lays the groundwork for ongoing negotiations on a revised funding agreement for City participation in the financing. Contact: John Wickham, Office of the Chief Legislative Analyst 213.473.5738 RSG Staff: Jim Simon, Brandon Fender, and Dima Galkin ECONOMIC & REAL ESTATE CONSULTING SERVICES - CITY OF SAN CARLOS During the past eight years, RSG has worked with the City of San Carlos on a variety of economic development, affordable housing, and real estate efforts. Projects have included property acquisitions, market analyses, Opinion of Value Reports, financial pro forma modeling, annexation proceedings, and redevelopment implementation plans. RSG has prepared development programming analyses, conducted developer outreach, performed financial analyses, and reuse valuations to assist in identifying appropriate disposition terms for Agency -owned properties proposed for redevelopment. Over the last several years RSG has played a key role in the progress of one of the City's most important projects, Wheeler Plaza, The TOD project is located in the center of the City's downtown and will redevelop a City -owned surface parking lot and six other retail and residential buildings. It includes 108 condominiums, a 451 -space parking garage, 19,855 square feet of retail and restaurant space, and a 31- unit very -low income senior tax credit equity project. When RSG was retained in 2006, the project was nearly dead. Through RSG's leadership and project management, the necessary parcels were purchased, a developer was selected through an extensive RFP process, and the Agency's investment was reduced (while increasing project benefits). RSG assisted the City with identifying and executing an economic strategy, including the current and ongoing development cost and feasibility analysis, acquisition using layered financing, solicitation and analysis of developer proposals, and expected disposition of property for a proposed hotel development. RSG's involvement also entailed ground lease valuation and buyout negotiations with an adjacent property owner. Contact: Al Savay, Community Development Director 650.802.4209 RSG Staff: Alexa Smittle, Jim Simon, Suzy Kim, and Brandon Fender In addition to the case studies referenced above, the table below presents some of our recent related projects. Lna uate ATKINS / City of Santa Monica Roberts Center Development Agreement 2013 Analysis (Santa Monica) City of San Carlos San Carlos Transit Village Feasibility Study, 2013 Fiscal Impact Analysis and BMR Analysis County of Orange The Ranch Affordable Housing Development 2013 Fiscal Analysis City of Santa Monica Economic Impact/Nexus Analysis for 2013 Affordable Housing Inclusionary Fee City of Westminster Civic Campus Redevelopment Program 2013 Analysis City_of Dana Point _ Towne Center Devel menC Feaslbilit 2013 25A -12 25A -13 Analysis City of Bell Economic Impacts on the City of Bell from the 2013 Interstate -710 Freeway Corridor Project City of Irwindale Panattoni DDA Negotiations and Fiscal Benefit 2013 Analysis ARID Group Multifamily Rental Project Feasibility Study and 2013 Concession Permit Application (Pasadena, CA) City of Dana Point Economic Development General Plan Element 2012 City of Carlsbad Economic Trends Analysis 2012 City of Rancho Mirage Developer Equity Analysis and Due Diligence 2012 Review/ Ritz - Carlton Rancho Mirage City of La Quinta Economic Trends Analysis 2012 Innovation Factory, Inc. EB -5 Economic Impact Analysis for Mixed Use 2012 Tech Accelerator City of West Hollywood Community Outreach Presentation — 2012 Dissolution City of Carlsbad General Plan Update Impact Analysis 2012 City of Camarillo Hotel Fiscal Analysis 2011 Selleck Development Shoppes at Westlake Fiscal Impact Analysis 2011 City of Brea Brea Public Trails Outreach 2011 Town of Yucca Valley Retail Recruitment 2011 City of Irwindale Economic Development Strategic Plan 2011 City of Grand Terrace General Fund Financial Sustainability Model 2011 South Irdell Chamber of Commerce Mooresville Comprehensive Economic 2011 Development Strategy Update City of Hercules Waterfront Development Program Analysis 2011 City of La Quinta Washington Street Apartment Project 2011 Redevelopment Feasibility, Design /Development and Entitlements City of Sparks (Nevada) East Truckee River Canyon Annexation Fiscal 2011 Impact and Development Study City of Hemet Stetson Crossing Retail Center 2010 Oroville Redevelopment Agency Oroville Inn Reuse Studies (Commercial and 2010 Residential) City of Goleta City Hall Condominium Interest Negotiation 2010 Santa Clarita Redevelopment San Fernando Road & Highway 14 2010 Agency Development Analysis City of Dana Point Towne Center Specific Plan Revenue Analysis 2009 Lemoore Redevelopment Agency Site Reuse Study 2009 City of Fountain Valley Infill Development Feasibility and Programming 2008 Analysis City of Carlsbad Strawberry Farms Economic Impact Analysis 2007 of General Plan Initiative Civic Partners The Diamond Market and Fiscal Impact 2007 Analysis City of South Pasadena DECOMA / Downtown Infill Redevelopment 2007 Fiscal Impact Analysis Westminster Redevelopment Springdale Site Analysis 2007 Agency 25A -13 3. PROJECT T RSG has assembled an experienced and efficient Project Team who has worked together on a number of similar assignments. RSG dedicates at least one Principal to each one of our engagements to oversee project deliverables, attend meetings, and manage all facets of the consultation process. Alexa Smittle and Jim Simon will act as the primary Principals -in- Charge and will lead this engagement with assistance from Tara Matthews and Hitta Mosesman, Principals. RSG is very engaged in the community and the collective expertise of each of the Partners will serve to enrich the Economic Development Strategic Plan. Additional staffing assistance will be provided by Brandon Fender, Senior Analyst, Dima Galkin, Analyst, and Michael Dietz, Research Assistant. Their resumes are included in this section, and on our website, www.webrsg.com. Other staff may be assigned as appropriate, particularly as needed for Spanish language outreach. RSGers Rosa Romero and Katherine Kotkin are both fluent in Spanish. 25A -14 ZIMINUMI =I 12 2 MMUZ4 .►• 'G_. VA R45 M Alexa leads clients and communities through policy- making, projects, market trends, and initiatives that support economic development efforts. She uses an honest and creative approach to identify opportunities that best fit her client's vision - from economic growth strategies to fiscal impact modeling. Her work includes sustainability forecasts, new development proposals, real estate analysis, and property tax finance. FOCUS AREAS: Economic Development, Municipal Finance, Fiscal Impacts, Market Trends Forecasts RECENT ENGAGEMENTS: • A demographic and real estate assessment to support retail recruitment including a) real estate educational components, b) community outreach utilizing multiple modalities c) marketing consultant coordination. Provided a foundation for ongoing City priorities and well supported planning initiatives. • A parking analysis for industrial area experiencing a multi -use renaissance including a) pro formas, b) conversion estimates, c) feasibility analysis. The analysis was designed to provide city council a series of options to allow land owners to convert their uses to accommodate more intense parking needs. New requirements for off -site parking would promote property investment. • A General Plan Economic Development Element and Implementation Strategy for a small, coastal community - focused on tourism and quality of place planning. • Leadership of team through annual tax increment allocations on behalf of the san Bernardino County Auditor controller, including collaborative development of a pass through model, allocation of ERAF funding, and audition of pass through agreements. Alexa joined RSG in 2005. She received a BS in Geography and Regional Development from the University of Arizona, and a Masters in Urban and Regional Planning from the University of California, Irvine. She maintains ties with the UCI Planning Program as a guest lecturer and mentor. WHAT I LOVE ABOUT THE WORK: I love seeing people make good decisions, especially when given touch choices. Our local governments, both staff and elected, deeply impact the quality of life we experience as residents. It's rewarding to help facilitate satisfy- action and even happiness. 25A -15 OUT AND ABOUT: "New Trends in Economic Development Finance" OCED /Southern California Economic Development Symposium (Feb'14) "Economic Development Trends" California Property Tax Managers Annual Conference (Feb '14) "Community Development" CALED /Introduction to Economic Development Certificate Program (Oct'13) "Dissolution and the Building Industry" Orange County Building Industry Association (Jul '12) Urban Land Institute (member) California Economic Summit, Workforce Action Team (member) Tara expertly navigates projects with a comprehensive knowledge of community development, affordable housing, and economic development. The complexity of her projects includes property acquisition and relocation services, development impact fee analyses, and the creation and monitoring of affordable housing projects. Tara is skilled at client collaboration, strategic planning, research and analysis, financial projections, report writing, and outreach. Tara also oversees staff management and inside operations. FOCUS AREAS: Municipal Finance, Affordable Housing, Organizational Analysis RECENT ENGAGEMENTS: • Assisted the City of El Cajon with financial impacts of a specific plan that would intensify uses in a downtown region. Provided an analysis of the probability of attracting businesses for the proposed uses. • Assisted the City of El Cajon Housing Authority identify real estate opportunities for affordable housing development by conducting field analysis, preparing preliminary programming analyses, and identifying available funding sources. • Facilitated the selection of a hotel developer to construct a 250 room hotel with over 10,000 square feet of conference space for the City of Camarillo. Assignment included developer negotiations, market trend analysis, pro forma analysis, and RFP preparations. • Assisted in the preparation of pro forma analysis for the City of Camarillo that detailed the affect of Senate Bill 341 expenditure requirements on potential disposition of a former redevelopment agency property. • Conducted an audit of the City of Carson's Mobile Home Park Rent Control Ordinance to determine the overall effectiveness of the program, potential modifications to establish best practices and cost efficiencies of program administration. • Prepared request for proposals and answered buyer inquiries for multiple properties in the City of Firebaugh. Tara joined RSG in 2004. She received a BS in Earth Sciences at the University of California, Santa Cruz, and a Certificate in Urban Planning and Development from the University of California, San Diego. WHAT I LOVE ABOUT THE WORK: I enjoy problem solving, and working with people who make things happen to improve their community. Seeing a project that I worked on come to fruition is very exciting. I can say, "I helped make that happen!" 25A -16 OUT AND ABOUT: San Diego Housing Federation, Member and Annual Conference Speaker California Community Economic Development Association, Member California Property Tax Managers Association, Annual Conference Speaker California State Municipal Finance Officers, Speaker Los Angeles Economic Development Corporation (tAEDC) and Los Angeles City Council District 11 Charrette Participant Inspired to improve the Golden State in his work, Jim delivers intelligence, innovation and passion to projects requiring his unparalleled expertise in fiscal health, real estate and economic development. For nearly 25 years, Jim is proud to have led projects that have resulted in the investment of over $3 billion in private and public capital, transforming cities and communities across California. As President of RSG, Jim is helping to shape the next generation of the firm's legacy - leading RSG's team of inspired, creative and insightful consultants that serve over 100 communities each year. FOCUS AREAS: Real Estate Acquisition, Development and Financial Feasibility, Economic Development RECENT ENGAGEMENTS: • Performed economic impact analysis for development of the catalytic Kaiser Permanents medical office project for the Leimert Park neighborhood in south Los Angeles. • Negotiated and structured terms and conditions of a workforce housing development in Goleta which was recognized by the American Planning Association's Central Coast Chapter as a "Hard Won Victory." • Analyzed and developed deal terms for a disposition and development agreement for a public - private partnership of a $70 million mixed use project in downtown San Carlos. • Analyzed and developed framework for a subvention agreement between the City of Los Angeles and Westfield for development of a $350 million destination lifestyle center in west San Fernando Valley. • Vetted equity investor and developer qualifications for the resurrection of the stalled reopening of the Ritz Carlton Rancho Mirage to be opened in May 2014. • Led the RSG team in an analysis of real estate market conditions and other assumptions employed by the Los Angeles County Assessor's office in their 2012 -13 property value forecast. Jim joined RSG in 1991, and has served as a Principal and shareholder since 2001. He received a BA in Business Administration with a concentration in entrepreneurial management from California State University, Fullerton. In 2014, Jim was selected as an advisory board member of the California Association for Local Economic Development, and is an active member of the International Council of Shopping Centers (ICSC) and the National Association of Office and Industrial Properties (NAOIP). WHAT I LOVE ABOUT THE WORK: I'm driven to help local government capitalize on community development opportunities. The work is not static. I enjoy adapting my style, pace and approach to the specific needs of my clients and their communities. 25A -17 OUT AND ABOUT: "Layered Financing: Funding Projects Today " — CALED /Annual Conference (Apr'14) "Creating an Economic Development Strategy" —OCED /Southern California Economic Development Symposium (Feb'14) "Real Estate Development & Reuse" — CALED /Introduction to Economic Development Certificate Program (Oct '13) Components of an Economic Development Strategy" - CSAC /Econom is Development and Opportunities for Counties (May 13) -"Economic Development Beyond Redevelopment" — CSMFOM/ebinar (Sep '12) "Unincorporated Communities and Infrastructure Financing" — CALAFCO /Annual Conference (Oct '10) HITTA MOSESMAN PRINCIPAL Hitta produces solutions to community problems with her expertise in public financing opportunities and economic development. She forms dynamic collaborations with her clients large and small, ranging from cities to public entities and agencies. Her work includes economic development advisory services, real estate valuation analysis property tax projections, cash flow analyses, successor agency consulting, methodology reviews, audits of assessed value projections, and fiscal impact analyses. FOCUS AREAS: Economic Development, Real Estate, Municipal Finance, Fiscal Health RECENT ENGAGEMENTS: • Prepared a Property Disposition and Marketing Plan for a high -value property located in the commercial core of a California city to 1) identify unique uses acting as economic development catalysts at the site, and 2) recommend the most beneficial disposition procedure. This assignment involved a comprehensive market analysis, research on emerging retail trends and multiple development pro forma analyses. • Calculated multiple cash flow analysis scenarios to determine the maximum amount of loan repayment (and most beneficial repayment structure) to a city to fund a large -scale and regionally- significant recreation area in Orange County. • Prepared complex property disposition plans for former redevelopment agencies for more than 100 properties, including disposition procedures and valuation analyses of each property. • Formulated multi -year property tax projections for a large special district for budgeting purposes. These projections incorporate new development projects, appeals, and annexations, as well as an economic analysis to forecast future growth rates in assessed valuation. Hitta originally joined RSG in 1989 as an intern while completing her BS in Economics with a minor in Business Management from the University of California, Irvine. After working for two boutique municipal consulting firms, Hitta re- joined RSG in 1996. WHAT I LOVE ABOUT THE WORK: I have the chance to discover and build upon the strengths and individual character that are unique in every community. I help communities improve and thrive in the face of challenges to revenues and increased levels of services. 25A -18 OUT AND ABOUT: League of California Cities City Manager's Group, Economic Development Focus Group Member Speaker, San Gabriel Valley City Manager's Association (League of California Cities) on Economic Development California Association for Local Economic Development Certified personal trainer BRANDON FENDER SENIOR ANALYST Brandon supports economic impact, nexus and linkage fee analyses with his specialty in research, fieldwork, and data analysis. He uses Geographic Information Systems software for graphic representation and spatial analysis, as well as IMPLAN modeling. He performs compliance audits and develops models to project future employment. He is experienced in the area of obtaining entitlements to create affordable housing opportunities for seniors and disabled adults. FOCUS AREAS: Fiscal and Economic Impact Analyses, Real Estate, Development Entitlements and Programming, Housing RECENT ENGAGEMENTS: • Assisted the City of Los Angeles Office of the Chief Legislative Analyst with determining the development costs, feasibility, gap, and fiscal and economic impacts associated with the Village at Westfield Topanga in Warner Center and the Grand Avenue project in Downtown Los Angeles. • Working with the City of San Carlos to assemble land and identify a developer to build a hotel with over 200 keys. The land, known as the Landmark Site, has been targeted for hotel development for over 20 years. • Fiscal and economic impact analysis for the City of Los Angeles to estimate jobs, sales, utility and property taxes generated by housing, retail and medical facilities on an economically depressed area. Brandon joined RSG in 2009. He received a BA in Social Ecology from the University of California, Irvine. WHAT I LOVE ABOUT THE WORK: When communities face economic stress and difficulty, I am able to provide innovative and ecological solutions. I have a passion for equitable, sustainable and social urban space. 25A -19 OUT AND ABOUT: ESRI Certified in Geographic Information Systems California Association for Local Economic Development American Homebrewers Association Brewers Association — Brewery Membership Owner, Good Beer Company, DTSA ANALYST Dime contributes a strong interdisciplinary knowledge base to RSG's project teams. He analyzes demographic, socioeconomic and business data along with trends to form recommendations for business attraction, real estate development investment and economic growth for cities. He composes long range property management plans. He creates maps, graphs and other visual elements for different types of projects to communicate research findings to a variety of clients. He also assisted in the research and implementation of a model focused on general fund revenue for economic development analysis. FOCUS AREAS: Economic Development, Fiscal Analysis, Real Estate RECENT ENGAGEMENTS: • Calculated property taxes, pass - thrpugh payments, and excess revenues for multiple clients, including reviews of past receipts and projections of future receipts. • Collaborated with other staff members to estimate development feasibility and impacts of different types of projects in cities throughout California. Analyzed demographic, socioeconomic, and business data, and trends to form recommendations for business attraction, real estate development investment, and economic growth for several cities. Synthesized information from clients, proprietary and other research, and site visits to help write, and assist with implementation of, five Long -Range Property Management Plans, with more than 300 properties total. Dima joined RSG in 2013. He received a BA in Urban Studies and Political Science from Washington University in Saint Louis, and an MPL in Urban Planning from the University of Southern California. WHAT I LOVE ABOUT THE WORK: When a client faces challenges, I am eager to find new paths for success. I look for innovative solutions to help cities improve their budgetary and financial paradigms. I'll take on any task to help cities efficiently provide better services to their residents. 25A -20 OUT AND ABOUT: American Planning Association California Association for Economic Development ESRI Certified Geographic Information Systems Fluent in Russian MICHAEL DIETZ RESEARCH ASSISTANT Michael brings an analytical and adaptable background to RSG's project teams. He researches a wide variety of data and translates it into a reliable source of information. He then helps to analyze this data in an efficient and effective manner. Furthermore, he assists in the drafting of advanced plans, spreadsheets, and reports for clients. His unique blend of knowledge allows him to understand communities and solve problems. He is a flexible and integral piece of the team. FOCUS AREAS: Community Development, Land Use Planning, Urbanization RECENT ENGAGEMENTS: Conducted a feasibility analysis to assess a proposed hotel's impact on residual growth of both the local and regional economy. • Examined and evaluated existing land uses and development standards with regard to their economic potential across multiple communities. • Drafted a report that analyzed existing senior housing availability and projected demand over the next 10 years, including a synthesis of data from comparable cities. Michael joined RSG in 2014. He received a Master's Degree in Urban and Regional Planning from University of California, Irvine and graduated with magna cum laude honors with a BA in Psychology from California State University, Long Beach. WHAT I LOVE ABOUT THE WORK: I am highly committed to the betterment of communities through the adoption of creative and progressive solutions. I enjoy thoroughly analyzing a community to ensure I discover its core character, and then using that knowledge to help people improve their quality of life. 25A -21 OUT AND ABOUT: American Planning Association 4. APPROACH AND WORKPLAN When it comes to data, RSG is a methodical, cautious group that never takes information on face value. We pride ourselves on diving deeper to understand the issues at hand, and deliver it back to our clients in a coherent manner. But here's the thing about data — everyone loves a fun fact or two, and this type of information is great for drawing people in; but it's using the data to move towards a goal that is the real trick. This is where RSG excels. Our true strength as a consulting firm, as demonstrated in our 35 year track record, is not just to gather information, but to integrate with our clients and help them achieve their goals. I_\7 30iffe I Santa Ana is currently undertaking a comprehensive General Plan Amendment update and the EDSP is an integral part of creating the City's Economic Development Element. RSG understands that our work will be instrumental in creating the framework that will guide city -wide economic development activities. As shown below, part of our approach will be to better understand what can be pulled in from the strategic planning efforts the City has completed to date (i.e. Santa Ana Strategic Plan, Economic Development Taskforce, workforce planning activities, etc.), then utilizing our outreach and analysis process, create a refined strategy based on current real estate economics, political and resource capabilities, workforce capacity, jobs and housing balance, infrastructure capacity, and most - importantly, private investment opportunities. 25A -22 Land Use EDSP Roles & Policy Partnerships Leveraged & Strategic Practices & Investment Metric & Programs Options Actions City History and Fiscal DNA City WIB Council and Staff Economic Development Framework Infrastructure Capacity Programs and Resources 25A -23 Community Orgs & Neighborhoods Economic Development Task Force N MIN n Our anticipated process is described below. Please note that while our efforts are grouped by task, we anticipate this will be a dynamic process, with each task supporting and feeding into the other until all tasks have been completed. We look forward to the opportunity to work with staff to refine this approach as needed. Task 1: Jobs /Housing Balance Assessment We expect this to be a very revealing and important part of the EDSP process, and suggest that it will be at the forefront of our research for the City. 1. The first part of this assessment will focus on traffic commute patterns from the US Census to understand the basic shifts in the daytime and nighttime population: where residents go to work, and where employees are living. At a minimum, this will help to better define the daytime population served by the City, but also illustrate where how job centers align with residency patterns. 2. RSG will next evaluate the types of employment offered within the city. Depending on the data and methodology available through business licenses, RSG may be able to look at this information within certain quadrants of Santa Ana through GIS, as well as the city as a whole utilizing State and Federal data. 3. Key industries in the city will be analyzed for trending patterns and clustering to identify where the city may be gaining or losing a competitive edge, and begin to identify where city efforts may work in concert with economic drivers to encourage job growth and retention. 4. Income levels associated with employment industries, both for those that commute out of and into Santa Ana will be used, in part, to frame the types of housing needed to accommodate the population. A limited sample analysis is shown below, utilizing only population demographics and limited research on available housing costs. The table essentially identifies the types of housing affordable to the various income groups living in the city, should they need to relocate today. Santa Ana Housing Product Affordability foal 74,583 100.00% ' E$RI Business Arelyst ' Table reflects affordablllty of products available In October 2014 only, not necessarily pmduct preferences 25A -24 Income Range' #HH 2014' %HH 2014' %Income to Housing Supportable Monthly Housing Costs Current Product Affordable to Income Group' Rent $ - - 15,000 7,151 9.59% 35% $ - - 438 None $ 15,000 - 24,999 8,521 8.74% 35% $ 438 - 729 None $ 25,000 - 34,999 8,795 11.79% 35% $ 729 - 1,021 Some studio and 1 bedroom units Many studio and 1 bedroom options for rental or purchase; some 2 $ 35,000 - 49,999 12,732 17.07 % 35% $ 1,021 - 1,458 bedroom options for rental Many options for up to 2 bedroom rental or purchase; some options $ 50,000 - 74,999 14,917 20.00 % 35% $ 1,458 - 2,187 for up to 3 bedroom purchase (apartments or condos) Almost any option for rental, many options for up to 3 bedroom $ 75000 - 99,999 9,748 13.07% 33% $ 2,083 - 2,750 purchase (all housing types) $ 100,000 - 149,999 10,193 13.67% 33% $ 2,750 - 4,125 Any rental; Many options for ownership $ 150,000 - 199,999 2,472 3.31% 30% $ 3,750 - 5,000 Any rental; Almost any option for purchase Mort a e $200,000 + 2,0541 2.75% 1 30% 1 IS 5,000 + lAny product foal 74,583 100.00% ' E$RI Business Arelyst ' Table reflects affordablllty of products available In October 2014 only, not necessarily pmduct preferences 25A -24 Task 2; Assessment of Conditions (SWOT) With staff recommendations, RSG will engage a series of small stakeholder groups to participate in short, but lively discussion on relevant strengths, weaknesses, opportunities, and threats (SWOT) to the business community in Santa Ana. We would suggest stakeholder groups include the following at a minimum: the Economic Development Task Force, representative staff from planning, economic development, public works, and the police department; local or recent developers; community action and non - profit groups; banks; sampling of local business members; the Chamber of Commerce, and any other local leaders such as neighborhood association representatives. While some of these discussions may need to take place via phone conversations, we recommend setting aside one to two days for short "speed dating" discussions with various cohorts in order to make the most of the participants' time while gathering extensive amounts of information and perspectives. We would further suggest that only one to two City representatives join RSG as discussion leaders to encourage the most open communication possible. 2. RSG will submit written summaries of feedback received, and begin to formulate the SWOT analysis, which will evolve during the EDSP process. Task 3: Evaluation of Existing Programs 1. RSG will facilitate a meeting with City staff, and potentially former city staff with permission, to learn about the business development programs and incentives currently offered, how successfully they have been used, if and how they have been adapted over time, perceived interest levels from the business community, and current outreach efforts to potential end users. 2. During this process, RSG will solicit ideas and thoughts from staff on how modifications to existing programs and implementation efforts, or completely new offerings, would make their departments more successful, as no amount of analysis from RSG will replace the day to day interactions staff has with the business community. 3. Based on staff feedback, business community outreach, and our own research and knowledge base, RSG will recommend programs to keep, modify, delete, or add and work with staff to define a critical path and ease of implementation matrix. 4. After analysis of future job growth and business clustering, RSG will also collaborate with the Santa Ana Workforce Investment Board and potentially local community colleges to determine where alignment may be achieved between anticipated local demand and programmatic services for job training and development. 5. RSG will provide feedback on existing and other future potential workforce investment strategies that may be used to plan strategically for new job needs as the City's workforce evolves. These may include both local efforts as well as recommendations for supporting policy changes at the State level. 6. Finally, after gathering a deeper understanding of industry clusters and anticipated business growth, RSG will help assess options for additional foreign investment and trade opportunities. The US Department of Commerce has recently begun to investigate potential opportunities with cities, and a number of Santa Ana stakeholders likely have insight to provide as well, which can be uncovered during the outreach process. 25A -25 Task 4; Establish Shared Vision of Economic Priorities and Actions Based on the Five Year Strategic Plan Priority Economic Development Issues Task 4a: Review and Modify Land Use Controls that Encourage Business Development, and Address Development Potential 1. RSG will conduct a high -level market assessment of the office, industrial, and retail markets to provide a reasonable range of any additional commercial square footage Santa Ana may be able to obtain, based upon regionally projected job growth, vacancy rates, competitive lease rates, and other related factors. 2. Utilizing cluster data from earlier Task 1, RSG will determine the business sectors most likely to be attracted to Santa Ana in particular, and research the types of infrastructure these businesses require, e.g. access to fiber networks, freeways, airports, educated workforce, etc. 3. RSG will engage City staff in a working group discussion related to existing land use controls that either foster or inhibit the types of growth or change that could occur in the business community with the right encouragement. Infrastructure needs will be included in this discussion. Based on this conversation, RSG will draft land use policy options that will benefit the business community for City consideration as the General Plan update process unfolds. Task 4b: Implement Strong Customer Relations Between the City and the Business Community, Including Business Outreach 1. The great thing about City interactions with the business community is that they are entirely within the City's control to manage and modify as needed. And while good customer relations will always be critical to a successful economic development strategy, we believe a part of this EDSP will be about identifying the target business audiences the City can focus on currently and in the near future in order to be most effective. 2. To achieve insight into customer relationships, RSG recommends convening of a limited number of business owners and developers that have recent interactions with the City to share their experiences. As a result of these two tasks, we can make recommendations on best practices for staff /business interactions that are grounded in job growth and retention priorities. Task 4c: Continued Concentration on DTSA as a Focal Point of Interest for Regional Attractions and Activities, Dining and Nightlife, Urban Living, Jobs, and Connectivity, Including Business Outreach 1. As a ten -year member of the DTSA community, we believe we can garner a number of unique perspectives on doing business in downtown that will help to frame further discussion on the evolution of the area — both as a magnet for entrepreneurs as well as a regional focal point. Our outreach efforts will focus on uncovering why businesses and residents are choosing DTSA, what's working well, and why any suggested improvements would benefit long -term and next - generation investors. 2. Working with City and community partners that put on events such as Cinco de Mayo Festival, the Patchwork Indie Arts and Crafts Festival, and First Saturdays, RSG will drill down into the social and economic successes had by large -scale events, and their impact on City services. 3. As a result, RSG will put forward a series of recommendations focused on continued viability and vigor of the downtown area. 25A -26 Task 5: Draft EDSP, with Background Data and Recommendations This task will be the culmination of RSG's efforts. The background data that has been collected during the due diligence period will be included to provide context to the EDSP, while key findings and recommendations will be brought forward for implementation. We expect this process will involve two rounds of staff comments and edits. We anticipate the EDSP will provide: 1. A streamlined and cohesive vision for Santa Ana's long -term economic viability that can be supported by elected officials, staff, and community members; 2. Actions that encourage job attraction and retention, foster entrepreneurialism, and work with market trends to best leverage city investment; 3. Prioritization of programs or investment solutions to deficiencies, such as customer service or infrastructure, and identification of potential funding mechanisms beyond the general fund where applicable; 4. Land use policy recommendations that will align the General Plan with economic development efforts; and 5. Measurements to track progress and enable course corrections as needed. 25A -27 5. SCHEDULE AND FEE FOR SERVICE Based on City input, we anticipate the EDSP process to take about 6 months to effectively complete, and an additional 2 -3 months to prepare the document for the City Council. Below is a schedule outlining the timing of expected workflow by task. Jobs /Housing Balance Assessment Assessment of Conditions Evaluation of Existing Programs Shared Strategic Vision Draft and Final EDSP Staff Meetings, Presentations 25A -28 Our fee for service is defined below by task. Please note that as discussed earlier, the tasks do overlap in many instances, with each informing another, therefore the depiction below is our best estimate on a task basis. The total fee for the engagement, regardless of task breakdown, is $118,210. The City will only be charge for actual hours billed to this engagement, and actual data costs as applicable. 25A -29 HOURS BY CONSULTANT Principal/ Research Director Associate Sr. Analyst Analyst Asst. ! Subtotal I Subtotal 210 150 125 115 1001 Hours 1 Costs Santa Ana EDSP 248 490 108 262 394 I 8441$ 118,210 JobslHousing Balance Assessment 12 40 48 60 160 1 $ 20,040 Commute Patterns 1 14 Employment Trends 4 16 10 161 Business License Data 2 8 201 Clusters 1 16 16 16 Housing Analysis 4 8 81 Assessment of Conditions 22 46 12 10 90 1 $ 13,900 Stakeholder Outreach 20 30 10 101 Initial SWOT Summary 2 16 2 Evaluation of Existing Programs 38 68 32 68 1 206 j $ 28,660 Meeting with Staff 8 16 161 WIB Coordination 4 8 12 121 Foreign Investment 2 20 30 2011 I Draft Strategies and Recommendations 24 24 20 201 i � Shared Strategic Vision 26 56 16 36 134 $ 19,300 Land Use Controls Review 2 16 16 201 Customer Relationships 8 16 12 I DTSA Focus 16 24 24 16! 1 Draft and Final EDSP 32 40 30 30 30 1i 162 $ 22,920 Staff Meetings, Presentations & Coordination 20 30 10 16 16 i 92 ! $ 13,390 25A -29 Current Hourly Billing Rates & Fee Schedule Principal / Director $ 210 Senior Associate $ 165 Associate $ 150 Senior Analyst $ 125 Analyst $ 115 Research Assistant $ 100 Technician $ 75 Clerical $ 60 Reimbursable Expenses Cost plus 10% RSG does not charge clients for travel or mileage (except direct costs related to field work /surveys), parking, standard telephone /fax expenses, general postage or incidental copies. However, we do charge for messenger services, overnight shipping /express mail costs and teleconferencing services. Any third party data required may also be charged to the client, typical examples include copies of the equalized assessment roll and Costar Market data. We also charge for copies of reports, documents, notices, and support material in excess of five (5) copies. Costs will be charged back at the actual expense plus 10 %. RSG issues monthly invoices payable upon receipt, unless otherwise agreed upon in advance. Invoices identify tasks completed to date, hours expended and the hourly rate. 25A -30 COZ5U UOT AGREEMENT THIS AGREEMENT, made and catered into this —clay of 2015, by and between Rosenow Spevacek Group, Inc., a California corporation (hereinafter "Consultant "), and the City of Santa Ana, a charter city and ruunicipal corporation organized and existing ti ader the Constitution and laws of the State of California (hereinafter "City"). RECITALS A. On March 28, 2014, the Santa Ana City Council adopted the Santa Ana Strategic flan, which established specific goals, objectives, and strategies to gaidc the City's major efforts over the next five years, Goal 3, Eoonomic Development M Strategy 1, states that the City will, "Implement a comprehensive Economic Development strategy to ensure that Santa Ana is a City with a vibrant business climate that is accessible, user friendly and welcoming to all residents and visitors." The purpose of developing an 'Economic Development Strategic Plan is to ensure that economic development initiatives are planned and focused appropriately to maximize the impact on the City. E, Consultant represents that Consultant is able and willing to provide such an Economic Development Strategic Plan, C. A Request for Qualifications to develop a oitywide econoric strategic plan was released on October 1, 2014, Tbo City received eight statements of qualifications from consultants to develop the Economic Development Strategic Platt, A, In undertaking the performance of this Agreement, Consudtaut represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may rcasonably bo expected froth a professional consulting firm in the field, NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Consultant sliall prepare an Economic Development Strategic flan that will: provide a road snap that will define long -range goals and objectives for business development, growth, and, attraction; establish a technical fratnowork for proactive programs to enhance the business climate and an huplenrentation plan to show how city -wide planning and specific priority recommendations moot the needs for highor•paying jobs, job training, and an increased quality of life for all residonts arrd oeigbborboods; and, build upon the planning efforts that have occurred to date or are currently in process, This sball be provided as set forth in the scope of services attached hereto as Exhibit A and incorporated, by this reference to this Agreement, W f. 2. DELIVFRY OY WORK PRODUCT Consultant shall deliver to City all work product which results from the services provided, Said work product shall be submitted in a hard copy and produced in a form compatible with City's computer system, as agreed between the City's Project Manager and Consultant. In regard to :material produced as a deliverable under the Agreement, including, but not limited to, books, reports, plans, photographs, drawings, videotapes, and computer programs, Consultant agrees, for itself and its affected officers, employees, agents, contractors, and volunteer workers, that tho authors of all such material, whether copyrighted or not, award to the City, and to its officers, agents and employees acting within the scope of their official duties, as a condition of payment to the Consultant, a royalty -free, nonexclusive, irrevocable license throughout the world to disolose, publish, translate, reproduce, and use such materials. 3. COMPENSATION ENSATION a. City agrees to pay, and Consultant agrees to accept as total payment for its services, the rates and charges identified in Exhibit A attached hereto and incorporated herein by this reforence. The total surm to be expended under this Agreement shall not exceed $120,000.00 during the Term of this Agreement. b. Payment by City shall be made within thirty (30) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 4. TERM This Agreement shall cornmonee on the date first written above and terrrr.inato one (1) year from said commencement date, or upon the depletion of the maximum contract amount as stated in Section 3 above, unless terminated earlier in accordance with provisions below. The term of this Agreement may be extended upon a writing executed by both parties, including the City Manager and the City Attorney for the City, 5. INDEPENDENT CONTRACTOR Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City, This Agreement is not intended nor shall it be construed to create an employertiemployce relationship, a joint venture relationship, or to allow the City to exercise disoretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulatlons ,governing such services, Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes, 6. INSURANCE Prior to uandortaking performance of work tinder this Agreement, Consultant shall nmotain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: 2 25A -32 a. Commercial General Liability Insurance, Consultant shall maintain cornmercial general liability insurance which shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to Property, resulting front any act or oomirrence arising out of Consultant's operations in the performance of this Agrocizont, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following; single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, and in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self-insurance programs maintained by the City; and (o) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined. single limit of not less than $1,000,000 per occurrence, Such insurance shall include coverage for owned, hired and non -owned automobiles, c. Worker's Compensation Insurance, In accordance with the provisions of Section 3300 of the Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for worker's compensation or to undertalce self-insurance. Prior to commencing the performance of the work under this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. Professional liability (errors and omissions) insurance, with a combined single l nat of not less than $1,000,000 per claim. e. The :following requirements apply to the insurance to be provided by Consultant pursuant to this section; (i) Consultant shall zaintain all insurance required above in full force and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved in form by the City Attorney. (iii) Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to 'the City. f. If Consultant fails or refuses to produce or maintain the insurance required by dais section or fails or refuses to furnish the City witb. required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Consultant's right to be paid for its time and materials orpended prior to notification of tennination. Consultant waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval ofing urance by the City, INDEMNIFICATIONN To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless City, its offtcors, agents and employees (collectively, the "hidenmified parties ") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, 25A -33 judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a claim; collectively, claims), which may arise from or in any manner related (directly or indirectly) to any work porformed or services provided under this Agreement (including, without limitation, defects in workmanship and /or tuaterials) or Consultant's presence or activities conducted performing the work (including the negligent and /or willful acts, errors and /or omissions of Consultant, its principals, officers, agents, employees, vendors, suppliers, contractors, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable for any or all of there), Notwithstanding the foregoing, nothing herein shall 'be construed to require Consultant to indemnify the indemniflod parties fiionx any claim arising from the sole negligence or willful misconduct of the indemnified parties, This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable, The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Consultant. 8. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the sarue degree of care it uses to protect its own infonnation of like importance, but in no event less than reasonable care, "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and /or agent of the other patty is covered by this Agreement, The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through, no fault of the Consultant disclosed in a publicly available source; (C) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (c) is independently developed by the Consultant without reference to information disclosed by the City, 9. CONFLICT OF INTElREST CLAUSE Consultant coveneLats that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 10, NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreoment shall be in writing and shall be doomed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by facsimile or other telegraphic communication in. the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M -30) P.O, Box 1988 Santa Ana, CA 92702 -1988 25A -34 Facsimile: 714- 647 -6956 Copies to: Community Development Agency — Executive Director City Tull — Ross Annex — 6t" Floor 20 Civic Center Plaza Santa Ara, California 92702 Ltd City Attorney City of Santa Ana 20 Civic Center Plaza (M�29) P.O. Box 1988 Santa Ana, California 92702 Facsimile; 714. 647,6515 To Consultant; RSG, Inc, 309 W. Fourth Street Santa Ana, California 92701 Telephone; 714. 316.2100 Facsimile; 714541 -1175 A party may change its address by giving notice in writing to the other party, Thereafter, any comnnunication shall be addressed and transmitted to the now address, If sent by mall, communication shall be effective or doomed to have been given three (3) days a.ftor it has been deposited in the kinitod States mail, duly registered or certified, with postage prepaid, and addressed as set forth above, If sent by facsimile, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. Pot purposes of cateuilating these time ftames, weekends, federal, state, County or City holidays shall be excluded, II, EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant, and supersedes any and all other agreements, oral or written, between the parties. in the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of tliis Agreement shall prevail, This Agreement may not be modified except by written Instrument sighed by the City and 'by an authorizod representative of Consultant. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terns and conditions hereof, shall not bind or obligate Consultant nor the City, Each party to this Agrmnent acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 12. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant may not assign, transfer, dclegtito, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement 25A -35 shall'bo construed to limit the City's ability to have any of the services which, are the subject to this Agreement performed by City personnel or by other consultants .retained by City, 13. TERMINATION' This Agreement may be tenninated by the City upon thirty (30) clays written notice of termination. In suoh event, Consultant shall be entitled to receive and the City shall pay Coimatant compensation for all services performed by Consultant prlor to receipt of such notice of termination, subject to the fallowing conditions: a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all wade product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate, b. Payment need not -be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 14, DISCRIMINATION Consultant shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the momitmont, selection, training, utilization, promotion, termination or other employment related activities, Consultant of liras that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 15. JURISDICTION - VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California, Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement, 16, PROFESSIONAL LICENSES Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions nowasary for the provision of the services hereunder and reglrirod by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exenptions. Said inability shall be cause for termination of this Agreement, 17. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature 'hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City filly, including reasonable costs and attorney's fees, for any irljuxles or damages to City in the event that such authority or power is not, ua ikot, held by the signatory or is withdrawn. b, All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreemont, 25A -36 IN WITNESS WHEREOF, the panties hereto have executed this Agreement the (late kind year first above written. ATTEST: MARIA D. HUIZAR Cleric of the Council APPROVED AS TO FORM: RECOMMENDED FOR APPROVAL: KELLY REENIDERS Executive Director - CDA CITY OF SANTA ANA DAVID CAVAZOS City Manager ROSENOW SPEVACEK GROUP, INC. Alexa Smittle Vice President 25A -37 Our anticipated process is described below. Please note that while our efforts are grouped by task, we anticipate this will be a dynamic process, with each task supporting and feeding into the other until all tasks have been completed. We look forward to the opportunity to work with staff to refine this approach as needed. Task 1: Jobs /Housing Balance Assessment We expect this to be a very revealing and important part of the EDSP process, and suggest that it will be at the forefront of our research for the City. 1, The first part of this assessment will focus on traffic commute patterns from the US Census to understand the basic shifts in the daytime and nighttime population: where residents go to work, and where employees are living. At a minimum, this will help to better define the daytime population served by the City, but also illustrate where how job centers align with residency patterns. 2. RSG will next evaluate the types of employment offered within the city, Depending on the data and methodology available through business licenses, RSG may be able to look at this information within certain quadrants of Santa Ana through GIS, as well as the city as a whole utilizing State and Federal data. 3. Key industries in the city will be analyzed for trending patterns and clustering to identify where the city may be gaining or losing a competitive edge, and begin to identify where city efforts may work in concert with economic drivers to encourage job growth and retention. 4. Income levels associated with employment industries, both for those that commute out of and into Santa Ana will be used, in part, to frame the types of housing needed to accommodate the population. A limited sample analysis is shown below, utilizing only population demographics and limited research on available housing costs. The table essentially identifies the types of housing affordable to the various income groups living in the city, should they need to relocate today. Santa Are Menefee Product Affordability Total 74,583 100.00% ' ESRI auslnuss Analyst F Tnble,ellsnle efra,dabllilynl nn,duala avallabla in Odsbar 2m4 only, not n.cessarily a,.&nt proferancua +., rA Income Range' # HH 2014' %HH 2014' % Income to Housing Supportable Monthly Housing Coats Current Product Affordable to Income Group° Rent $ - - 15,000 7,451 9.59% 35% $ - - 438 None $ 15,000 - 24,999 6,521 8.74% 35% $ 438 - 729 None $ 25,000 - 34,999 8795 11.79% 35% $ 729 - 1,021 Some studio and i bedroom units S 35,000 - 49,999 12,732 17.07% 35% $ 1,021 - 1g58 Many studio and 1 bedroom options for rental or purchase; some 2 bedroom options for rental Many options for up to 2 bedroom rental or purchase; some options $ 60,000 - 74,999 14,917 20,00% 35% $ 1,458 - 2,187 for up to 3 bedroom purchase (apartments or condos) $ 75,000 - 99,999 9,748 13.07% 33% $ 2,063 2,750 Almost any option for rental; many options for up to 3 bedroom purchase (all housing types) $ 100,000 - 149,999 10,193 13.67% 33% $ 2,750 - 4,125 Any rental; Many options for ownership $ 150,000 - 199,999 2,472 3.31% 30% $ 3,750 - 5,000 Any rental; Almost any option for purchase Mortgage e $ 200,000 + 1 2,0541 215% 1 30% 1 $ 5,000 JAny product Total 74,583 100.00% ' ESRI auslnuss Analyst F Tnble,ellsnle efra,dabllilynl nn,duala avallabla in Odsbar 2m4 only, not n.cessarily a,.&nt proferancua +., rA Task 2: Assessment of Conditions (SWOT) With staff recommendations, RSG will engage a series of small stakeholder groups to participate in short, but lively discussion on relevant strengths, weaknesses, opportunities, and threats (SWOT) to the business community in Santa Ana. We would suggest stakeholder groups include the following at a minimum: the Economic Development Task Force, representative staff from planning, economic development, public works, and the police department; local or recent developers; community action and non- profit groups; banks; sampling of local business members; the Chamber of Commerce, and any other local leaders such as neighborhood association representatives. While some of these discussions may need to take place via phone conversations, we recommend setting aside one to two days for short "speed dating" discussions with various cohorts in order to make the most of the participants' time while gathering extensive amounts of information and perspectives, We would further suggest that only one to two City representatives join RSG as discussion leaders to encourage the most open communication possible. 2. RSG will submit written summaries of feedback received, and begin to formulate the SWOT analysis, which will evolve during the EDSP process. Task 3: Evaluation of Existing Programs 1. RSG will facilitate a meeting with City staff, and potentially former city staff with permission, to learn about the business development programs and incentives currently offered, how successfully they have been used, if and how they have been adapted over time, perceived interest levels from the business community, and current outreach efforts to potential end users. 2. During this process, RSG will solicit ideas and thoughts from staff on how modifications to existing programs and implementation efforts, or completely new offerings, would make their departments more successful, as no amount of analysis from RSG will replace the day to day interactions staff has with the business community. 3. Based on staff feedback, business community outreach, and our own research and knowledge base, RSG will recommend programs to keep, modify, delete, or add and work with staff to define a critical path and ease of implementation matrix. 4. After analysis of future job growth and business clustering, RSG will also collaborate with the Santa Ana Workforce Investment Board and potentially local community colleges to determine where alignment may be achieved between anticipated local demand and programmatic services for job training and development. 5. RSG will provide feedback on existing and other future potential workforce investment strategies that may be used to plan strategically for new job needs as the City's workforce evolves. These may include both local efforts as well as recommendations for supporting policy changes at the State level 6. Finally, after gathering a deeper understanding of industry clusters and anticipated business growth, RSG will help assess options for additional foreign investment and trade opportunities. The US Department of Commerce has recently begun to investigate potential opportunities with cities, and a number of Santa Ana stakeholders likely have insight to provide as well, which can be uncovered during the outreach process. 25A -39 Task 4: Establish Shared Vision of Economic Priorities and Actions Based on the Five Year Strategic Plan Priority Economic Development Issues Task 4a; Review and Modify Land Use Controls that Encourage Business Development, and Address Development potential 1. RSG will conduct a high -level market assessment of the office, industrial, and retail markets to provide a reasonable range of any additional commercial square footage Santa Ana may be able to obtain, based upon regionally projected job growth, vacancy rates, competitive lease rates, and other related factors. 2. Utilizing cluster data from earlier Task 1, RSG will determine the business sectors most likely to be attracted to Santa Ana in particular, and research the types of infrastructure these businesses require, e.g. access to fiber networks, freeways, airports, educated workforce, etc. 3. RSG will engage City staff in a working group discussion related to existing land use controls that either foster or inhibit the types of growth or change that could occur in the business community with the right encouragement. Infrastructure needs will be included in this discussion. Based on this conversation, RSG will draft land use policy options that will benefit the business community for City consideration as the General Plan update process unfolds. Task 4b: Implement Strong Customer Relations Between the City and the Business Community Including Business Outreach 1. The great thing about City interactions with the business community is that they are entirely within the City's control to manage and modify as needed. And while good customer relations will always be critical to a successful economic development strategy, we believe a part of this EDSP will be about identifying the target business audiences the City can focus on currently and in the near future in order to be most effective. 2. To achieve insight into customer relationships, RSG recommends convening of a limited number of business owners and developers that have recent interactions with the City to share their experiences. As a result of these two tasks, we can make recommendations on best practices for staff /business interactions that are grounded in job growth and retention priorities. Task 4c; Continued Concentration on DTSA as a Focal point of Interest for Regional Attractions and Activities, Dining and Nightlife, Urban Living, Jobs, and Connectivity, Including Business Outreach 1. As a ten -year member of the DTSA community, we believe we can garner a number of unique perspectives on doing business in downtown that will help to frame further discussion on the evolution of the area — both as a magnet for entrepreneurs as well as a regional focal point. Our outreach efforts will focus on uncovering why businesses and residents are choosing DTSA, what's working well, and why any suggested improvements would benefit long -term and next - generation investors. 2. Working with City and community partners that put on events such as Cinco de Mayo Festival, the Patchwork India Arts and Crafts Festival, and First Saturdays, RSG will drill down into the social and economic successes had by large -scale events, and their impact on City services. 3. As a result, RSG will put forward a series of recommendations focused on continued viability and vigor of the downtown area. 25A -40 Task 5: Draft EDSP, with Background Data and Recommendations This task will be the culmination of RSG's efforts. The background data that has been collected during the due diligence period will be included to provide context to the EDSP, while key findings and recommendations will be brought forward for implementation. We expect this process will involve two rounds of staff comments and edits. We anticipate the EDSP will provide: 1. A streamiined and cohesive vision for Santa Ana's long -term economic viability that can be supported by elected officials, staff, and community members; 2. Actions that encourage job attraction and retention, foster entrepreneurialism, and work with market trends to best leverage city investment; 3. Prioritizatlon of programs or investment solutions to deficiencies, such as customer service or infrastructure, and Identification of potential funding mechanisms beyond the general fund where applicable; 4. Land use policy recommendations that will align the General Plan with economic development efforts; and 5. Measurements to track progress and enable course corrections as needed. 25A -41 S. SCHEDULE AND FEE FOR SERVICE Based on City input, we anticipate the EDSP process to take about 6 months to effectively complete, and an additional 2 -3 months to prepare the document for the City Council. Below is a schedule outlining the timing of expected workflow by task. Jobs /Housing Balance Assessment Evaluation of Existing Programs Shared Strategic Vision Draft and Final EDSP Staff Meetings, Presentations 25A -42 Our fee for service is defined below by task. Please note that as discussed earlier, the tasks do overlap in many instances, with each informing another, therefore the depiction below is our best estimate on a task basis. The total fee for the engagement, regardless of task breakdown, is $118,210. The City will only be charge for actual hours billed to this engagement, and actual data costs as applicable. Santa Ana ED$P Jobs / Housing Balance Assessment Commute Patterns Employment Trends Business License Data Clusters Housing Analysis Assessment of Conditions Stakeholder Outreach Initial SWOT Summary Evaluation of Existing Programs Meeting with Staff Wig Coordination Foreign Investment Draft Strategies and Rocommendattons Shared Strategic Vision Land Use Controls Review Customer Relationships OTSA Focus Draft and Final EDSP Staff Meetings, Presentations & Coordination 25A -43 HOURS BY CONSULTANT Principal! Associate Sr. Analyst Analyst Research Subtotal i Subtotal Director Assl 210 150 125 115 100 Hours I Costs 248 490 106 -282 394 844'x;$ 118,210 12 40 48 601 160 $ 20,040 1 14 4 16 f0 16I 2 8 20 1 16 16 16I 4 8 8 22 46 12 10 90 I $ 13,900 20 30 10 10 2 16 2 38 66 32 68 206 $ 28,660 8 16 16 4 8 12 12 2 20 30 20 24 24 20 20 26 56 16 36 134 $ 19,300 2 16 16 20 8 16 12 16 24 24 16 32 40 30 30 30 i 162 $ 22,920 20 30 10 16 16 92 I $ 13,390 25A -43 Current Hourly Billing Rates & Fee Schedule Principal / Director $ 210 Senior Associate $ 165 Associate $ 150 Senior Analyst $ 125 Analyst $115 Research Assistant $ 100 Technician $ 75 Clerical $ 60 Reimbursable Expenses Cost plus 10% RSG does not charge clients for travel or mileage (except direct costs related to field work /surveys), parking, standard telephone /fax expenses, general postage or incidental copies. However, we do charge for messenger services, overnight shlpping /express mall costs and teleconferencing services. Any third party data required may also be charged to the client, typical examples include copies of the equalized assessment roll and Costar Market data. We also charge for copies of reports, documents, notices, and support material in excess of five (5) copies, Costs will be charged back at the actual expense plus 10 %. RSG issues monthly invoices payable upon receipt, unless otherwise agreed upon In advance. Invoices identify tasks completed to date, hours expended and the hourly rate. 25A -44