HomeMy WebLinkAbout26 - NB-2 - Economic Development Strategic Plan Sc - 8/3/20211
CITY COUNCIL AGENDA REPORT
MEETING DATE: AUGUST 3, 2021 ITEM NUMBER: NB-2
SUBJECT: ECONOMIC DEVELOPMENT STRATEGIC PLAN SCOPE OF WORK
DATE: July 26, 2021
FROM: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/
ECONOMIC DEVELOPMENT
PRESENTATION
BY:
DANIEL INLOES, ECONOMIC DEVELOPMENT
ADMINISTRATOR
FOR FURTHER INFORMATION
CONTACT:
DANIEL INLOES, AICP 714-754-5088
daniel.inloes@costamesaca.gov
RECOMMENDATION:
Staff recommends the City Council:
1. Approve the Economic Development Strategic Plan Scope of Work and direct
staff to release a Request for Proposals.
2. Authorize the City Manager and City Attorney to negotiate and execute
agreement(s) with selected consultant(s) for work that is in substantial
conformance with the scope of work approved by City Council for an anticipated
cost of $275,000.
BACKGROUND:
As the market has become more competitive and with the dissolution of Redevelopment
Agencies in California, revenue sources for local governments have become more
limited, while unfunded mandates continue to be generated at the state and federal
level. Within this context over the last several years, the City has begun to take a more
proactive and creative approach to supporting local businesses and identifying and
creating additional revenue sources to increase funding for the wide variety of
community services provided by the City.
This focus on economic development as a City function began with a rebranding of the
Development Services Director’s title to Economic and Development Services Director
in April 2012, and included within the job description a task to build up datasets for
tracking and analyzing the Costa Mesa economy. From 2012 until 2015 the Economic
and Development Services Director was tasked with seeking economic datasets,
2
participating in business outreach, and attending a national retail conference to pursue
new retail tenants for City vacancies.
In 2015, the City used the data collected to include economic development –related
Goals, Objectives, and Policies in the 2015-2035 General Plan. In 2016, the City started
building its spatial analysis toolset for economic analysis.
In 2017, the City acquired its Costar license which provides significant real estate data
which improved the City’s ability to assist with site selection for businesses interested in
locating in Costa Mesa, increased the number of economic indicators the City could
monitor, and allowed for the economic brochures the City produces to be updated
annually. That year, the City also made substantial progress in obtaining business
community feedback by conducting regular interviews with business, non-profits, and
educational institutions within the City, and started pushing forward a new Land
Management System proposal, aimed at streamlining the development process by
using a more efficient and transparent technology system.
In 2018, the City created the Economic Development Administrator position to help
support the Director in pursuing economic development related projects which included
developing a more robust digital presence, launching an online tool that allows
businesses to conduct comparative analytics, and creating a direct contact for
businesses within the City.
In 2019, the City Council identified the development and implementation of a strong
economic development plan and program as a key goal (2019 City Council Goals and
Priorities 3(b)(i)). Staff began case studies for a strong economic development plan and
program, drafted an initial structure, and identified the studies that would be necessary
for a comprehensive economic development strategic plan. However, limited staff
resources and other Council priorities and demands on staff time made completing the
studies and drafting the plan within a year impractical.
In 2020, staff resources were re-allocated to responding to the COVID-19 pandemic by:
launching Costa Mesa Business Assistance Collaborative, a partnership with the
Chamber, Travel Costa Mesa, and South Coast Metro Alliance;
outreach to over 2,000 businesses to find out what assistance and resources
they needed to remain open and viable during and after COVID-19;
creating a microsite that showcased businesses that were complying with state
safety regulations;
retaining Buxton to provide an economic impact dashboard to track COVID-19
impacts in real time and provide foundational economic information for the
economic development strategic plan;
launching two separate business grant programs that disbursed nearly $5 Million
dollars to hundreds of Costa Mesa small businesses; and
supporting business outreach and communications through mass emails and
town hall meetings to inform businesses about federal, state and local programs
intended to help them through the COVID-19 pandemic.
3
In 2021, economic development staff continued to maintain these ongoing efforts,
developed a proposal for a Shop Local financial incentive program, continued the
implementation of the new LMS system toward completion in July 2022, and drafted a
comprehensive Economic Development Strategic Plan scope of work. Although the
economic development strategic plan was already an important priority in 2019, the
economic hit the City took due to COVID-19 has made completion of this strategic plan
even more critical as evidenced by its addition to the 2021 City Council Goals and
Objectives, “Achieve long-term fiscal sustainability” and “Develop the scope of work for
the Economic Development planning consulting contract and present to the City
Council”.
The proposed Scope of Work and budget is based on an evaluation of several
economic development planning efforts in other agencies, feedback from local
businesses collected over the last four years, results from the Buxton analysis
conducted last year, and based on current best practices within the public economic
development field.
ANALYSIS:
Economic Development Strategic Plan Benefits
One consensus is clear from most economist who study local government, an erratic
global economy and growing inequality requires a proactive response. “Communities must
obtain more control over their economic directions and destinies. The task may be
difficult, but it is not impossible. Local economic and political decision makers need not
surrender their communities’ fates to chance, the marketplace, or unsupportive federal
policies”, Nancey Green Leigh Planning Local Economic Development. The benefit of an
economic development strategic plan is directly proportionate to how accurately it has
encapsulated the pulse of the economic activity that occurs within the City. For this reason,
there are several studies requested as part of the scope of work. Once an economic
development strategic plan develops goals, objectives and policies, they can help staff
prioritize actions for staff effort and increase the potential for positive outcomes.
Essentially, the plan provides staff with direction to allocate limited resources while
leveraging industry expertise to produce a substantial work effort in a constrained time.
Summary of Scope of Work
The Scope of Work (Attachment 1) includes detailed economic studies, community
outreach, a vision document, and an action plan. The studies are based on the need to
establish a clear base year, establish an objective method for evaluated potential projects
and programs, provide a clear context for the City’s economic state, and understand
apparent strengths and weakness. The community outreach is designed to corroborate
the results from the studies and identify the most salient topics according to our local
businesses. The vision document is meant to provide a foundation, a mission, and the
specific goals and objectives that will help the City identify the actions necessary to
become a prosperous City. The action plan is meant to help the City focus on the
4
immediate actions necessary for success. The Scope of Work includes all analyses
necessary to improve the City’s fiscal sustainability in the short term and prioritize actions
that grow the City’s economic prosperity in the long-term. The proposed Scope of Work is
provided as Attachment 1.
Below is the list of phases for the Economic Development Strategic Plan.
1. Economic Context
A comprehensive analysis of Costa Mesa and economic enclaves
2. A Vibrant Strategic Vision
Draft and final of a strategic vision document
3. Exploration of Key Economic Studies
Evaluation and development of actions or programs
4. Economic Best Practices
Evaluation and development of best practices for Costa Mesa
5. Resource Assessment
Recommendations for resource solutions
6. Implementation and Assessment Tools
Identify tools/indicators that evaluate status of the City and success of actions
7. Comprehensive Action List
Creation of a Costa Mesa-specific action list
8. Prosperity Action Plan
Draft and final action plan
Community Engagement
Engaging our rich and diverse community of businesses, non-profits, and educational
institutions is important in developing this strategic plan. The City has included the
preparation and attendance of nine onsite community engagement meetings as well as
monthly meetings with the business community throughout the process. The scope of
work also clarifies the importance of the consultant in ensuring that community
engagement is structured, organized, and efficient. The business community the City will
be reaching out to is incredibly busy, trying to recoup losses due to the COVID-19
pandemic during the previous 18 months. The consulting team must be sensitive to this
reality and ensure that community engagement is productive and successfully
incorporated into the deliverables.
5
Peer Reviewed Scope and Budget
The proposed Scope of Work was reviewed by two principles of two different economic
consulting firms. Both firms have over 40 years of experience within Orange County. Both
confirmed that the work described is reasonable and comprehensive. The cost estimates
given independently by both firms for an Economic Development Strategic Plan is
approximately $275,000.
Timeline
If the City Council approves the Scope of Work, City staff will release a Request for
Proposals in August, select a consultant in September, and immediately commence work.
The Scope of Work requires the project to be completed within nine months; regular
updates to the City Council and the public through regular meetings, and final
presentations to City Council in summer 2022.
ALTERNATIVES CONSIDERED:
The City Council could modify the scope of work or opt to not develop an economic
development strategic plan. Staff does not recommend this alternative. While this will be
the first time the City has created an economic development strategic plan, it has
become salient and best practice for local governments to develop a clear strategy as to
how the City will navigate international, regional, sub regional, and e-commerce
pressures that will determine the path of the City’s economic future.
FISCAL REVIEW:
The anticipated cost for this Economic Development Strategic Plan and accompanying
studies is not-to-exceed $275,000. Funds are available in the Development Services
Department’s FY 2021-22 budget.
LEGAL REVIEW:
The City Attorney’s Office has approved this report as to form.
CITY COUNCIL GOALS & OBJECTIVES:
Goal: Achieve long-term fiscal sustainability
Objective: Develop the scope of work for the Economic Development planning consulting
contract and present to the City Council.
6
CONCLUSION:
Staff recommends that the City Council Approve the Economic Development Strategic
Plan Scope of Work and direct staff to release a Request for Proposals, and authorize
the City Manager and City Attorney to thereafter negotiate and execute agreement(s)
with selected consultant(s) for work that is in substantial conformance with the Scope of
Work approved by City Council for an anticipated cost of $275,000.
_________________________________ _________________________________
DANIEL INLOES, AICP JENNIFER LE
Economic Development Administrator Economic & Development
Services Director
________________________________ _________________________________
CAROL MOLINA KIMBERLY HALL BARLOW
Finance Director City Attorney
Attachment: 1. Economic Development Strategic Plan Scope of Work