The URL can be used to link to this page

Home My WebLink About25A - AGMT - ED STRATEGIC PLANREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 15, 2016 TITLE; AMENDMENT TO ROSENOW SPEVACEK AGREEMENT TO DEVELOP CITYWIDE ECONOMIC DEVELOPMENT STRATEGIC PLAN {STRATEG PLAN 3,11A) CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: - =e+ NI ❑ As Recommended ® As Amended ❑ Ordinance on 1°t Reading ❑ Ordinance on 2 "a Reading ❑ Implementing Resolution ❑ Set Public Hearing For [01+70Yi[01[1140111 ] FILE NUMBER Authorize the City Manager and Clerk of the Council to execute an amendment to the agreement with Rosenow Spevacek Group to extend the term of the agreement through June 30, 2016 and increase the compensation by an additional $35,000, for total contract amount not to exceed $155,000, for the completion of the Economic Development Strategic Plan, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION On March 18, 2015, the City entered into an agreement with Rosenow Spevacek Group (RSG) to develop a citywide Economic Development Strategic Plan (EDSP). After several months of business and community engagement, RSG has provided a list of draft prilimanary strategies (Exhibit 3) that address business and job clusters, development opportunities, educational attainment information, and support for the downtown and the small business community. RSG will be presenting these strategies for discussion with local resident groups, and business stakeholders, with a Town Hall meeting scheduled for mid -April 2016. The City will also post the draft Economic Development Strategic Plan on the City's website and will have a 30 -day review and comment period. During the plan development process, the City hosted three community meetings in November 2015, which were outside of the original scope of work. Ongoing communication and feedback from the community will be a vital part of finalizing the plan. In order to accomplish the additional outreach and strategy development, RSG is requesting additional funds and time to complete these remaining tasks as noted on the revised scope (Exhibit 1 and 2). It is anticipated that this plan will be presented to City Council for approval at the end of May 2016. 25A -1 Amendment to Rosenow Spevacek Agreement to Develop Citywide Economic Development Strategic Plan March 15, 2016 Page 2 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 in the amount of $35,000 are available in the Community Activities, Contract Services — Professional account no. 01105810 -62300 for expenditure in Fiscal Year 2015 -16. I / �� Kelly Reenders --ers Executive Director Community Development Agency KR /MM /sb APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez _re_ .7rf�I,' Executive Director Finance & Management Services Agency Exhibit: 1. RSG Revised Scope 2. Amendment to Agreement 3. Draft Preliminary Strategies for Discussion 25A -2 EXHIBIT 1 BETTER COMMUNITIES. SOLDER FUTURES. To: Kelly Reenders Marc Morley CITY OF SANTA ANA From: Alaxa Smittle Jim Simon ROSENOW SPEVACEK GROUP INC. Date: February 11, 2016 RSG, INC, r 714 5414585 309 WEST 4TH STREET F 714 5411175 SANTA APIA, CALIFORNIA E INFO.WERSG.COM 92701-4502 WEBRSG.COM Via Electronic Mail SUBJECT: REVISED SCOPE, BUDGET, AND TIMELINE FOR THE EDSP Thank you for the opportunity to present this revised scope to complete the Economic Development Strategic Plan. We believe that it presents a realistic approach to completing the document, but more importantly, to aligning the strategies with those that will implement them. As discussed, this budget increase is needed to: (a) provide project funding that was used for public meetings not budgeted for in the original scope, (b) incorporate a final town hall meeting, and (c) minimal additional research based on feedback. We hope to work closely With you to develop a plan that will achieve the varying objectives of stakeholders, elected officials, and staff. A timeline for completion is included, which identifies deliverable dates and a plan for regular interaction between us. We look forward to discussing this with you to ensure your priorities and expectations are met, and ultimately result an excellent product. SCOPE 1. Expand business outreach to outline an approach to the marijuana industry that will attractjobs while allaying fears of stigma. 2. Meeting and coordination with High School Inc., and the Santa Ana Unified School District to outline a path of academy growth in other three non - fundamental high schools. ED staff to participate In meeting with SASUSD. The EDSP will include a basic framework for upscaling the program on a tiered basis. 3. Two additional meetings with staff anticipated as follows: a, (1) meeting H. Haghani for land use and zoning strategy development b. (1) meeting with information technology staff 4. Draft EDSP document, with minimalist and graphic approach to main document and appendices as appropriate. 5. Community meeting to summarize feedback from prior meetings and outreach and present Draft EDSP. Task will include: 25A -3 Ns. Ke|lyReendeo Mr. Marc Morley CITY {lF SANTA ANA February 11.2O1O Page u. Joint preliminary nt$ivahvmSACRoD.LetinnMoakhAocoos. Chamber of Commonm. Downtown |nc, Santa Ana Business Council, others aoneeded |o walk through draft strategy and engage help for public outreach, b, Primary community meeting, with support from key community groups and ambassadors. O. Finalize FDSP10 incorporate information from the community meeting, 7. Present toCvono|. BUDGET Below is a cost estimate for the scope presented above. Modifications to the proposed scope would result in budget changes. L— �� Total | �.��..��.��_��'��.��.,��'��^��....��.��.��..��..,.�� 210 � 1�O $ 115 $ 1O0 Business Outreach 5 2 1.350 Educational Partnership Planning 2 2 720 Staff Meetings ^P|unn|ng/|T 0 4 2.280 EDGPDrpR 20 20 30 10 12.910 [dits/Fioa|zaStmWSy O 10 5 3.755 Present bCouncil 8 V 2,580 Core Interest Groups Meeting 3,270 Public M tin 20 20 8 8,120 Subtotal Outreach $ 11,390 Total �� m� 34,985 25A.5 i % ! »\ | )� k f ! m } y ! ± ( a \i ![ { /ZN of (( /)\ \ \\ \ ( } ( (3Z \ }\ LL 6- § $: / / / ) ) 25A.5 25A -6 FIRST AMENDMENT TO CONSULTANT AGREEMENT WITH ROSENOW SPEVACEK GROUP, INC. THIS FIRST AMENDMENT TO CONSULTANT AGREEMENT, is made and entered into this 15 °' day of March, 2016, by and between Rosenow Spevacek Group, Inc„ a California Corporation (hereinafter "Consultant") and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "City "). RECITALS A. The City entered into a Consultant Agreement ( "said Agreement ") with Consultant dated March 18, 2015 (Agreement #A- 2015 -021) to retain a professional tine having special skill and knowledge in the field of economic development consulting and project management. Consultant was chosen through a Request for Qualifications process to develop an Economic Development Strategic Plan ( "EDSP ") for the City. B. The parties desire to amend said Agreement to increase the Compensation, extend the Term, and modify the Scope of Work. 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. Section I of said Agreement, "Scope of Services ", shall be amended to modify the Scope of Work as set forth in the "Revised Scope, Budget and Timeline for the EDSP" from Consultant dated February 11, 2016, attached' hereto as Exhibit A and incorporated herein by this reference. 2. Section 3 of said Agreement, "Compensation ", shall be amended to include an additional Thirty Five Thousand Dollars ($35,000.00) for a total not to exceed amount of One Hundred Fifty Five Thousand Dollars ($155,000.00). 3. Section 4 of said Agreement, "Term ", shall be amended to June 30, 2016. Such Term may be extended by a writing executed by both parties, including the City Manager and the City Attorney for the City. 4. All other terms and conditions included in said Agreement shall have the sane force and effect and remain unchanged. Mil I IN WITNESS WHEREOF, the parties hereto have executed this First Amendment the date and year fist above written. ATTEST: Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: Lisa Storck Assistant City Attorney RECOMMENDED FOR APPROVAL: Kelly Reenders, Executive Director Community Development Agency CITY OF SANTA ANA: David Cavazos City Manager CONSULTANT: Alexa Smittle Vice President 25A -8 Small Business Community and Downtown DRAFT ......... . ... ... _ _._.__. . . .. . ........ . . .......... ..... -- DATA Low rents and high vacancies in downtown and So. Main _...._..- .,..._..... -. _.._.._.... _._.- ................ Larger parcel sizes in So. Main more conducive to redevelopment, but many absentee landlords Upper floors in many downtown buildings require significant investment to attract users _---_--..-, - .............. .. _........,. City business license data too convoluted to provide good insight INFORMATION SOURCES TAPPED Downtown Inc Santa Ana Business Council Main Place Mall Chamber of Commerce ................. ..... _...... _. OPEN San Antonio Community members WHAT IS WORKING Chamber walks . °- --- ------- Localentrepreneurship - _Business_coaching -at- Main - Place-- - -------------- Coordination between SABC and Downtown Inc liaisons City downtown liaison HEARD, INFERRED, & OBSERVED Business license tax too expensive for small businesses — _. - ...,- -- ------ ------- -- --- I ------- I ............... ._.. Prior small business grant program was hit and miss .. .. ......_._ ............... _...,...................... Downtown business ecosystem far more fragile than it appears Continued challenges to align the Business Improvement District operating agreements with SABC and Downtown Inc. General discord among different special interest groups Continued conflicts between business groups and City Hall, particularly related to large events Too much focus on downtown vs. other commercial areas of town Homelessness issues deeply impacting businesses and desirability, especially in downtown ... --- --.. _----------- ..... ......................- -- -..... _.... Upper floors in many historic buildings need substantive investment to appeal to new business or residential tenants Parking options downtown don't encourage people to stay - - ............ - ° --- ----- - - -- Poor street lighting in some commercial areas gives a bad impression to visitors at night ....................... Train station area is underutilized Deep- running fear of gentrification / bias favoring outside businesses --- - ------ - --- --------,._..,...,. Small firms seeking capital will locate in Irvine - better reputation among investors CITY STRATEGIES New operating agreement between City and downtown BID groups. SABC /DTlnc must put forth collaborative proposals for expenditures, events, etc. City will follow lead _. . Incent local hires and locally -owned businesses through reduced, business. license fees. or other. benefits Create low -cost pop up incubator opportunities in vacant spaces for So. Main to generate interest in filling storefronts or redeveloping sites. When seeking vendors, offer consideration for residents (e.g. points.in.a. point- driven.ranking. scale,)..- ....,__ .., Collaborate with the Chambers,, BID. to create business coaching . /training.opportunities..., .. . Activate train station area through increased events, reconsidered tenant mix, and ultimately increased .,connectivitx with central downtown ......... . ........................ _............................ ..- .._.- °--......._............ Improve streetlights to make commercial_ areas more invitin_gin. the evening._.,._..- .,_..._._.,. ........ _....... Revise business license process for better information gathering to increase business outreach and support MIS Education - DRAFT DATA Low incomes Declining. incomes .... ..... ........... Low graduation rates , ,.. High.service sector employment Young population INFORMATION SOURCES TAPPED Chamber of Commerce ... ............ ........ .... ._. ....... .._....- _........ Orange County Business Council OC Children and Families High School Inc .. ........ C College of California areer Kipp Schools Houston ........................... Workforce Investment Board Community Members HEARD, INFERRED, & OBSERVED Under - employment.-- ---- - -- ____ -------------- Minim um wage earners Parent engagement during early school years needs to be increased Poverty levels alone do not dictate kindergarten readiness Gap between high school and career Lack of personal career counselling Prior Santa Ana 2000 initiative lost steam over 25 years Limited interaction between SAUSD and City now WHAT IS WORKING Improved graduation rates and college interest through High School Inc Academies - ..._..... ° .. .... ...... -------- Increased parent engagement through the Latino Educational Attainment ..Program (OCBC1._._ .............. Higher levels of career counselling in private colleges Alignment of high school and college programming with the job market CITY STRATEGIES Re_ engagement with SAUSD for_------- .- _ - -. - -, (a) Tiered_expansionof_High.School Inc to- non - fundamental -high schools - - - -_, ....... _ ... (b) Introduction of LEA. program, - .- _.- __ - - - - -. -- City -grows role as bridge between. business community and schools . for . talent pipeline .management....... Improve career counselling support through the WIB 25A -10 Development -DRAFT DATA Comparatively weak office and retail lease & vacancy rates ...__..._..- - - -- - - - -- .... - -- Comparatively strong industrial lease rates Extremely high Class A office vacancies -23% Mall vacancies high - 14% 2015 saw negative net commercial absorption overall INFORMATION SOURCES TAPPED Real estate brokers ..Commercial developers Manufacturing businesses Small businesses Community members HEARD. INFERRED. & OBSERVED City not experienced same level of investment as neighbor cities since upturn Significant inventory of dilapidated / _outdated retail Permitting and entitlement process issues - too slow and cumbersome ........ .................... ...... ....° _ -- -- -- -- ._.. - -- City codes overly complex Too much uncertainty generated by high levels of discretionary approvals Poor customer interface at City Hall Need to improve overall City image to attract investment Need some "high profile" wins to market and improve investor interest Not enough new rental housing near downtown to support local businesses New rental housing needs to serve multiple audiences for different income and lifestyles WHAT IS WORKING Location and freeway,access Staff, interaction with developers Housing in walkable areas to support local retail and promote health CITY STRATEGIES Increase_by -right development opportunities to.signifi can tly- reduce discretionaryprocedures Focus density opportunities on major corridors /transit centers and southeast commercial pockets Ensure a range of incomes in new rental housing development focused in walkable nodes through the use of in -lieu and other available housing funds - _._.. -- - ----------- ------ - --- - -- - - - -- - - - -- ---------------- - _- ......_- - -._._ ---- -- ------ ----------------- Develop a marketing and branding strategy, and uphold its promise including training at City Hall at public counters......,._ ............ ..,- - ...__........ ---- -- -- ---- Increase and improve connectivity with local businesses to achieve ED goals; including defining roles for Chamber and City staff 25A -11 Business and Job Clusters -DRAFT DATA OC strongest regional clusters are business services and distribution & e- commerce -- -.- ._._......... .. ...' -------------- ..... .............. ... OC strongest local clusters are health care and service sector --------------------- ... . Largestjob growth anticipated for administrative services and professional services - - .- ._.......-.. °------ --------- ......... SA residents - very high comparative employment in service sector Most residents leave city for jobs in restaurants, hotels, manufacturing, administrative services, and construction ...... --------------- ------ ....,.,. City imports workers for government jobs, legal professionals, consultants, and wholesale trade - ....... .............. ................. _.._. City local employment clusters are greater than County average in only public administration and education In regional employment clusters, city stands out for education, IT & analytical instruments. INFORMATION SOURCES TAPPED Local .. manufacturers -- --- - - - - - . _...------- --- ...... - OCBC - ---._._.. .....- ------- .... .............. Brokers --- - -- --------- ---- - - --- --------------- - Community members HEARD, INFERRED,& OBSERVED Traditional manufacturing jobs continue to move to Mexico - - - -- --------------- -- -- .. .................. ....... Manufacturing is much more technology driven,today than even 5.yearsago -_,,._ ., , CEQA makes manufacturing relocation challenging inmany cases---------- ---- -- --------- State -level CEQA exemptions available around transit hubs ----... _. ... ..--------------- ----------------------- ._..------- Medical /heart- related manufacturing has - -long history in OC_.__.- .- .- ._....._... Manuf. biz stay as own land and no good reason to move, but no particular attachment to SA "Factory floor" jobs below livable wage for .00, - albeit well above minimum Businesses - including IT and e- commerce cluster as well as manuf related - have increasing need for fiber /data availability- - - - - -_ _ , ... WIB services are often unknown .. .............. _. -.... _................_ _............... _. Rapid expansion of marijuana dispensaries in city following local ordinance has mixed reviews by community; however, statewide legalization will be voted on in November. WHAT IS WORKING Long- standing manufacturing base still feeds above minimum wage jobs_ Business wnership of land Building u- p support industries for clusters Increasing technology infrastructure to accommodate users and plan for greater data needs CITY STRATEGIES Plan for and help extend medical - related uses from Orange into No. Main to capture strong cluster jobs, proximity to established users ------- _...... ------------ --- ..... -------- -----_....._ ........ - --------- .- ..._- --- --- -........ --------- - - -- ------ ---- .......... Facilitate connection between local manufacturers and major employers and HS Inc / SAUSD / WIB for job training and placement - ---- --- ------------ -------- . ---------------------- .. ----- _ --------------- --- ------- - -- -- ------- ---- -- _ --------------- _. Opportunities to plan for expanding marijuana industry as it relates to medical technology and support industries _........... ,...... ._ ------------ ------- - - .......... -- - ................._...--- - -..... Develop plan for Smart City future to ensure continued ability to retain businesses, improve data collection and usage, foster creative culture 25A -12