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HomeMy WebLinkAbout11/01/2005, C11 - CONSULTANT SERVICES FOR DOWNTOWN ASSOCIATION STRATEGIC PLAN UPDATE ° councit ;°Ift j ac,Enaa REpont CITY OF SAN LUIS OBISPO FROM: Deborah Cash, Administrator SUBJECT: Consultant Services for Downtown Association Strategic Plan Update CAO RECOMMENDATION Authorize the CAO to enter an agreement with Jeffrey Eichenfield & Associates to update the Strategic Plan for the Downtown Association, subject to the following conditions: 1. The contract work scope fully addresses the issues outlined in the 2005-07 budget request for this update., 2. Compensation from General Fund sources for Phase 1 scoping services will not exceed$5,000; if an approved workscope by the CAO does not emerge from Phase 1 services, the contract will end at this point:. 3. Compensation for all services from General Fund sources will not exceed $25,000; the total contract price can be higher for expanded services if paid from. non-General Fund sources. DISCUSSION In 2005, the Downtown Association at its annual retreat approved adopting the Economic Activity two-year work plan of which a major goal is updating the organization's Strategic Plan. ('The current plan was adopted in 2001 and was developed as a five-year plan.) To support this endeavor, the Downtown Association requested that the City Council (who approved City funding of the initial Strategic Plan) again partner with the Downtown Association and provide $25,000 in funding for the project from the General Fund. The Downtown Association agreed to contribute (up to) $5;000. See attached Strategic Operating Plan for Downtown excerpt from the 2005-07 Financial Plan, Appendix A (Significant Operating Program Changes). The City Council granted this request with the stipulation that the Downtown Association, during the updating process, include in its goals exploring alternative funding mechanisms so that the Downtown Association has adequate resources to accomplish its mission in the future. The Downtown Association wishes to hire Jeffrey Eichenfield and Associates, the consulting firm that developed the current Strategic Plan. In the case of these specialized professional services, the Downtown Association believes that a formal Request for Proposal process is not necessary, as other consultants would likely not be able to efficiently deliver the services desired here. The Association recommends utilizing Jeffrey Eichenfield and Associates for the following reasons: C( (-I 1 Consultant Services for Downtown_Association Strategic Plan Update Page 2 1. Jeffrey Eichenfield and Associates successfully completed the Strategic Plan process and issued the final document during the period 2000-2001. In collaboration with an associate from the National Trust for Historic Preservation's Main Street program, Doug Loescher, who contributed his services at a minimal cost, Eichenfield .and Associates was able to deliver a comprehensive product at below-market rates. Considerable research about our community, our organization and our mission, along with intensive stakeholder, town-hall and focus group meetings comprised the bulk of the team's time. 2.. Because of Mr. Eichenfield's extensive history with the process and our organization, his ability to "come up to speed" on background information will be minimal, keeping costs low: In addition, Mr. Eichenfield will be performing an update rather thanstarting from scratch, using his own knowledge base and assistance from Administrator Deborah Cash, thereby necessitating fewer physical visits to the area, also reducing costs. 3. Mr. Eichenfield has proven himself as capable of working with the Downtown Association Board, staff and members, as well as with the City and the community at large. He has strong credibility in San Luis Obispo, which will be helpful in working through an update of the Strategic Plan. At this time, the scope of work for the Plan is not included in this report as the Board of Directors wishes to perform, upon hiring Jeffrey Eichenfield and Associates, a scoping exercise at its November Board.meeting. Part of the scoping exercise will include addressing operational (funding) methods that. enable the Association to increase economic health. A subsequent report will be issued once this exercise is completed. CONCURRENCES Discussions 'with City staff members, including those in Administration and Economic Development previously involved in the Strategic Planning process, reveal a high level of confidence in hiring the former consultant. FISCAL IMPACT The cost of the Strategic Plan Update has not been finalized as that figure will be determined once the scope of work is complete. Up to $5,000 provided liy the Downtown Association will be utilized for the scoping aspect of the project. It is thought that $25,000 from the City will be sufficient to cover tasks associated with the update of the Strategic Plan. However, researching alternative funding mechanisms could increase the costof the project; until Mr. Eichenfield has direction in that regard, the final cost remains unknown. Costs for assessment district reorganization have been quoted by the professionals in the field as running between $30,000 and $50,000, not including the Strategic Plan Update. However, at this point, we only wish to explore and develop a better understanding of the options. 1 I Consultant Services for Downtown Association Strategic Plan Update -Fagg--! ALTERNATIVES Not performing the Strategic Plan; this would mean the Downtown Association operates with a defunct document as of June, 2006. ATTACHMENTS 1. Economic Activity Committee Two-Year Work Plan 2005-07 2. Minutes of April, 2005, Board Retreat, Board of Directors 3. 2005-07 Budget Request for Strategic Plan Update C < < 3 - ATTACHMENT, :I Economic Activities Committee Two Year.Work Program 2005-2007 E1Vlission Statement To encourage a healthy economic environmen=Dwntown=development, -implementation of updated Strategic Plan Goals: _ 1. Create and disseminate information and awareness of business trends to membership 2. Promote business viability through marketing and business plan support 3. Work on projectsthat have financial impact on Downtown 4. Continue to promote customer service education for business Tasks: 1. Tourism: support City's tourism promotional activities 2. Market Downtown activities and events to other agencies, media and general public for tourism purposes 3. Keep businesses and property owners informed about Downtown issues 4. Pursue additional opportunities for additional Downtown information kiosks, i.e. new County Building, PaWMorro garage, Court St. project 5. Develop customer service poster for businesses with tips for employees using fun graphics 6. Explore Secret Shopper Programs 7. Oversee web site maintenance 8. Update Strategic Plan -( 9. Oversee and work with projects that have financial impact on the Downtown including major construction projects. Budget: $1000.00 ATTACNMENT�j Board of Directors Annual Retreat 22 April 2005 SLO Art Center Minutes Present Kathi Main Brad Bilsten_ Pam Seeley Bob Seeley Tom Swem Ellen Henry Patty Carpenter Doug Shaw Tom Copeland Alex Gough Howard Carroll Deborah Cash, staff Kristin Dennis, staff Callto order 9:10 AA Mission Statement Motion by Shaw to accept as is currently written, 2"d by Bilsten, PAIR Major Goals Aggressively obtain more available and convenient parking in the Downtown. Promote awareness of and participation in alternative access to and within the Downtown. • Strongly advocate for cleaning and beautifying the Downtown. Seek active participation in Association activities through personal contact. Foster public safety awareness within the Downtown district. • Continue a high level of promotional activities. Ex Officio members: will return to this topic. City staff introductions Betsy Kiser Wendy George Shelly Stanwyck -Jonathan Lowell Kiser: Transient Task Force Tunny Ortali is Downtown representative; Chamber is,now also a member ATTACHMENT":a Muni code revisions, tightening up somewhat `"`Aggressive"education campaign for businesses—how to handle transients being aggressive George: stays closely in touch with Association Economic development, natural resources, cultural program involvement Sees her role as a resource more than hands-;on director Is pleased about Downtown goal adopted by Council (one of eight) Stanwyck? economic development ` Business support(providing demographic info, bus location assistance, development review assistance) Business retention and expansion Sales tax: shop SLO keep it local campaign. Tourism, community promotions, increase TOT Seismic retrofit program, Claire Clark; reviewed pages from website George: at May 17 Council meeting, taking results of telephone survey re:: ballot initiative to raise sales tax,TOT Lowell: Brown Act, provides that meetings of legislative bodies have to be held within city limits, agendas for regular meetings needs to be posted at least.72 hours in advance—including website; begin emailing agenda to City Clerk Brief description of each item to discuss Meetings must be open to public Special meetings: post 24 hours in advance Public has to be given an opportunity to speak Quorum must be present to discuss meeting of the body " Only items on agenda can be discussed "serial meetings"prohibited, also email Other business: if intend to take action, need to bring back for another agenda Main presented,outgoing Board member Bob Seeley with'a plaque. Ex officio position Brandon Downing not able to attend on Tuesday mornings; Henry suggested Heather from the Tribune, someone else from KSBY to fill his term Will talk to Brandon see if he can fill commitment or have someone else fill his seat if he cannot. Main will invite Dave Booker to serve another term 03-05. Not for profit: Main will ask someone from United Way Mission College Prep School a possibility Committee Assignments Design Committee—Pam Seeley as chair, vote: Bilsten nominates Pam Seeley, 2' Shaw, PAIF Cll -(� ATTACHMENT :o� Promotions—Ellen Henry will continue as chair Parking—Tom Swem will continue as chair Economic Activity—Howard Carroll vote: Bilsten nominates Carroll as chair, 2°d Henry, PAIF. TNP—Tunny Ortali will continue as chair Committee assignments:. Patty Carpenter. TNP Doug Shaw: TNP Alex Gough: Economic Tom Copeland: Economic Brad Bilsten: Parking Committee Rork Plans Economic Activity Copeland suggested stressing standard or longer hours for customers Shaw said things start to pick up after the dinner hour Copeland said the concept takes a while to become the norm Gough said.that is one of the strengths of the mall, that the stores have uniform hours Swem said if the Marketplace is approved, have about a two-year"ramp up" period before the heavy competition hits; need the synergy of a mall Promotions Weekend and sidewalk sales will be eliminated starting 2006; will do an ad campaign for shopping downtown instead. TNP Carpenter said TNP committee decided to not have Friday market after Thanksgiving Motion to accept committee work programs Shaw,2°d by Carpenter, PAIF. ' Budget The board reviewed the proposed 2,005 -06 and 2006-07 budget. Motion to adopt as submitted by Bilsten, 2°d by Shaw, PAIF. Committee Work Truck To acquire a truck to be used for Association business Shaw, Swem, Copeland will.have info at next board meeting. Administrative Work Program Motion to adopt updated administrative work program by Henry, 2°d by Swem; PAIF. Ambassador Program. Breakfast RSVP coupons to new businesses, old businesses that don't come to breakfast Have board member contact business, give coupons; make sure RSVP Motion into changing program into passes for Quarterly Breakfasts by Shaw, 2°d by Swem; Swem said should look at numbers, PAIF: ATTACHMENT Shaw will spearhead this, Swem will help. Shaw motion to accept, 2'by Gough, PAIR Main reiterated importance of Board supporting Taste of San Luis. Meeting adjourned 3:55 PM. Prepared by D.Cash 22 April 2005 p�'�CHM�t 3 ISTRATEGIC OPERATING PLAN FOR DOWNTOWN IRequest Summary Updating the Strategic Business Plan for Downtown to provide direction for sustaining the downtown's economic viability and maintaining it as a major commercial district in the City will cost$25,000 in 2005-06. fhey Objectives The current Strategic Plan "expires" officially during the next budget term. Many changes (anticipated and I known) in the marketplace have necessitated a newly defined strategy to assure the continued health of Downtown. Key objectives include: 1. Promote the efficient operations of a currently existing BID (Business Improvement District). 2. Identify ways to increase economic health in Downtown. 3. Research funding mechanisms for the'future. 4. Promote Downtown as one of the best areas to shop, socialise, enjoy cultural activities and engage in professional business activities. 5. Maintain status as a viable commercial hub in the City and County. 6. Assist in tourism efforts through collaboration.with the Chamber of Commerce and Visitors and Convention Bureau using promotional activities of the Association. 7. Continue efforts to achieve a level of safety and cleanliness necessary to economic health. 8. Continue efforts to provide Design activities (art, bike racks, street lighting, kiosks, banners) that increase ambiance and overall beauty of the area. 9. Anticipate market trends and develop strategies for a changing economy. Factors Driving the Request for Change Based on the cost of the current plan developed in 2001, updating the Strategic Plan is estimated to cost$30,000, of which the.Downtown Association is asking the General Fund to fund $25,000, with the remainder paid for by the Downtown Association. The Downtown Association will seek to contract in July 2005 with the same consultant hired for the previous study to reduce research costs. In addition, the Downtown Association will fund (or seek a sponsor to fund) a portion of the cost of the study, with a five-year target objective of being an efficiently operating organization that contributes to a viable and healthy City economy. The current Strategic Operating Plan (2001) was designed as a five-year plan for operations. In addition the commercial marketplace has changed beyond what was anticipated just five years ago (on-line competition, experiential shopping as opposed to "shopping for the basics;" a changing demographic). It is necessary to follow local changes (such as "affordable shopping" for those making low wages in the City but living elsewhere) when making decisions about spending BID assessment dollars and expending limited staff energy. Currently, the Downtown Association is reliant on a few funding sources, including income from the assessment district, fundraising and sponsorship/donations. In spite of ever-increasing operating costs, the Downtown Association is attempting to deliver the same high level of service as it has over the past five years with flat revenues (figuring in cost of living, increases in BID income have not kept pace with operation increases). There simply is no extra funding available to complete a new Strategic Business Plan and maintain current service levels. The Strategic Business Plan will serve to guide the work program of the Downtown Association for years to come. The amount sought from the General Fund for this update seems reasonable in terms of value returned. ATTAOM 3 p STRATEGIC OPERATING PLAN FOR DOWNTOWN Alternatives 1. Continue the status quo. The Downtown Association is a professional organization that seeks to operate as efficiently and as fiscally-sound as possible; however, as changes in the business world occur, guidance from revitalization professionals in downtown operations is essential in developing work plans that establish benchmarks and offer recommendations for expending money and energy. Time lost in regrouping on its own may leave the Downtown (and the City) at a disadvantage for moving ahead and maintaining momentum. 2. Defer or re-phase the request: If the plan is not funded or is deferred, the Downtown Association may lose opportunities to implement strategic actions necessary for its own two-year work plan. For eiCarnple, if a. consultant recommends that shifting from a BID to a PBID (Property Based Improvement District) is in the best interest of all parties,deferring this move could waste time,energy and funds spent on worn-out tactics. 3. IMplement it in a different way. The Downtown Association could develop the Strategic Business Plan in- house. In any situation where an objective review is critical to developing new thinking,using in-hoose staff is less effective. Whilethe Association's administrator is qualified to develop a Strategic Plan, it is not viewed as objective by all parties and also is not currently designated as a work plan,activity for her. Implementation - - - Hire consultant -- --- 07-OS Strategic Plan Development 07-05- 11-05' Adoption of Plan 01-06 Implementation of Plan ____ _ _ 2006=2011 Operating Program Downtown Association. Cost Summary For 2005-06 $25,000 will be needed from the General:Fund to complete the project. The Downtown Association seeks to work with the previous consultant to reduce costs substantially and also seeks to obtain a sponsorship fee or fund.at least$5,000 from its own budget. -- ---- - - - - Line Item Descrl tion Account No. 2005-06 2006=07 Contract Services Consultant Services 21014100 30,000 Offsetting Costs Savings or Aevenues __". _ _ [5. ] - --- 25,000 -Net Operating Costs 60 l� ( ——AD