REPORT TO COUNCIL
SUBJECT
Title
Award of Contract to BAE Urban Economics, Inc. for Economic Development Strategic Plan Preparation and Approval of Budget Modification No. 1 in the amount of $12,728 (F19-088)
Report
REPORT IN BRIEF
Approval is requested to award a contract in the amount not to exceed $102,480 ($100,020 for base services and $2,460 for optional services) to BAE Urban Economics, Inc. of Berkeley for Economic Development Strategic Plan preparation. Approval is also requested for a 10% contingency in the amount of $10,248 and finally, approval of Budget Modification No. 1 to appropriate $12,728 for the project.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, contracts for this type of service are awarded pursuant to a Request for Proposals (RFP) best value process, unless otherwise exempt from the competitive bidding process. Additionally, City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
ENVIRONMENTAL REVIEW
The action being consider does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environmental.
BACKGROUND AND DISCUSSION
This project will address evolving trends in the retail, industrial, and office sectors. The rise of e-commerce, increasing demand for ‘creative’ industrial and office space, emergence of co-working and home-based businesses, new auto manufacturer design standards for dealerships, restructuring of medical services delivery, and changing mobility preferences all have big implications for how the City should approach economic development. The strategy will provide recommendations to preserve and enhance the City’s auto dealerships that are major sales-tax generators. The plan will also recognize the role of housing affordability to attract and retain its labor force as well as offer strategies to give low-income and marginalized populations pathways to economic prosperity. The City will need to proactively address these issues to maintain its desirability and competitive position in the regional economy.
The completed plan will be designed as a living document that provides direction for Sunnyvale’s short- and long-term economic development activities and programs. The plan will have a summary report with key data, analysis, and findings derived from a thorough stakeholder engagement plan which integrates pertinent information and goals expressed by stakeholders and decision-makers. The completed plan will also recommend prioritization of the City’s economic development efforts and resources for the next five to ten years as well as measurable annual objectives.
A Request for Proposal (RFP) was posted on the DemandStar public procurement network on January 24, 2019 and 20 firms requested the RFP documents. Five proposals were received on February 26, 2019 from Applied Development Economics, Inc., BAE Urban Economics, Inc., Economic & Planning Systems, Inc., Kosmont Companies, and TIP Strategies, Inc. A team consisting of staff from the Office of the City Manager, Department of Public Works and the Community Development Department evaluated the proposals based on qualifications, project approach, and experience with similar projects. The evaluation team agreed that BAE Urban Economics, Inc. offers the best value to the City, due to their experience with similar local projects, qualified project team, and strong project work plan and approach.
BAE Urban Economics, Inc. initially proposed base pricing in the amount of $120,245 with no optional services. Base pricing was subsequently negotiated to $100,020 by removing unneeded scope and travel and now includes optional services for additional meetings in the amount of $2,460, for a total contract amount not to exceed $102,480.
FISCAL IMPACT
The total cost of the recommendation is $112,728 which consists of the base bid in the amount of $100,020, optional services in the amount of $2,460, and a 10% contingency in the amount of $10,248. Project 832660 - Economic Development strategy has $100,000 available in budget for this project. Budget Modification No. 1 has been prepared to appropriate $12,728 from the General Fund Budget Stabilization Fund to cover the additional funding request.
Budget Modification No. 1
FY 2019/20
|
|
Current |
Increase/ (Decrease) |
Revised |
|
General Fund |
|
|
|
|
Expenditures: |
|
|
|
|
Project 832660 - Economic Development Strategy |
$100,000 |
$12,728 |
$112,728 |
|
|
|
|
|
|
Reserves: |
|
|
|
|
Budget Stabilization Fund |
$40,265,229 |
($12,728) |
$40,252,501 |
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Award a contract in substantially the same form as Attachment 1 to the report in the amount of $102,480 to BAE Urban Economics, Inc.
- Authorize the City Manager to execute the contract when all necessary conditions have been met
- Approve a 10% contingency in the amount of $10,248
- Approve Budget Modification No. 1 to appropriate $12,728 to provide project funding
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Connie Verceles, Assistant to the City Manager
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Consultant Services Agreement