HomeMy WebLinkAbout08/15/2000, 4 - DOWNTOWN ASSOCIATION STRATEGIC OPERATING PLAN PROPOSAL AWARD council s
j agenda Report 4
CITY OF SAN LUIS OBISPO
FROM: 8%Deborah Holley, Administrator
San Luis Obispo Downtown Association
SUBJECT: DOWNTOWN ASSOCIATION STRATEGIC OPERATING PLAN
PROPOSAL AWARD
CAO RECOMMENDATION
Award a contract to prepare a Downtown Strategic Operating Plan to a consultant to be named
on August 8, 2000.
DISCUSSION
After obtaining City Council approval at its 20 June 2000 meeting, the San Luis Obispo
Downtown Association issued a Request for Proposals (RFP)for a consultant to develop and
prepare a Strategic Operating Plan for the Downtown.
Nineteen RFPs were mailed to prospective candidates; three proposals were received by the July
28 deadline. A committee of six people will review the proposals on August 7. The committee
includes:
1. Correne Weaver, SLO Downtown Association Board member and Chair of the Economic
Activity Committee;
2. Dave Kastner,Downtown Association Board member, Economic Activity committee
member,
3. Rob Schultz, Attorney,Downtown Association Economic Activity Committee member;
4. Pierre Rademaker,Graphic Designer, Past President of the Downtown Association;
5. Shelly Stanwyck,Economic Development Manager, City of San Luis Obispo;
6. Deborah Holley,Administrator,Downtown Association.
The committee will base its recommendation on five criteria:
1. Knowledge of Main Street principles
2. Previous experience with Downtown Strategic Planning
3. Adequacy of proposed methods of obtaining input from businesses and other community
members on a wide variety of issues
4. Proposed final report content
5. Cost; specifically the breakdown of expenses, as well as the percentage of travel expenses in
relation to "core"costs
The recommendation of the committee will be submitted to the Downtown Association Board of
Directors on August 8 for approval. Once that approval is obtained,the chosen consultant will
be named in an addendum report for the Council's review prior to the August 15 meeting.
4-1
Council Agenda Report—Downtown Strategic Operating Plan
Page 2
FISCAL IMPACT
All three of the proposals received were over the $25,000 base price approved by Council;
however at the June 20 meeting of the Council, it was acknowledged that for the scope of work
desired, bids might possibly come in at a higher level. In approving the RFP, the Council
indicated that it would consider additional funding if the quality of the selected proposal
warranted it. During the review process on August 7, the review committee will consider
whether or not cost items can be eliminated from the proposal or whether a recommendation will
be made to increase funding for the project.
4-2
MEETIN� is o b AGENDA 4,
MEMORANDUM
DATE_ITEM #
August 10, 2000 t�OUNCIL 2<DD D111 j.
L9'Er.D ❑FCI CM k
E rCAO ❑FIP._CIIISF
TO: City Council p,,,,'�61RI OR "�D;1
LyLI.EFliGORIG [I POLICE CHF
❑I'GSIT TEAM O REC DIR
FROM: Deborah Holley,Administrator ❑UTIL DIR
4V-X00 M P, ❑PERS DIR
VIA: Q John Dunn, CAO
SUBJECT: Downtown Association Strategic Operating Plan Proposal Award
(Supplement)
CAO RECOMMENDATION
1) Award a contract to Jeffrey Eichenfield & Associates as consultants to prepare a Downtown
Strategic Operating Plan for an amount not to exceed $47,600.
2) Authorize the Downtown Association Administrator to sign the contract.
3) Authorize an appropriation of $22,600 from the unencumbered balance of the General Fund
to cover the additional cost of the study above the current$25,000 budget.
DISCUSSION
Background
In July 2000, the Downtown Association issued a Request for Proposals (RFP) to develop a
Strategic Operating Plan, after obtaining funding and approval of the RFP from the City Council.
Nineteen RFPs were issued and three proposals were received.
On August 7, a review committee consisting of Correne Weaver, Pierre Rademaker, Dave
Kastner, Rob Schultz, Shelly Stanwyck and Deborah Holley unanimously selected the proposal
submitted by Jeffrey Eichenfield and Associates in conjunction with The Main Street Center of
the National Trust for Historic Preservation National Main Street Center (Doug Loescher). The
Board of Directors approved the recommendation at its August 8`h meeting.
Based on the criteria described in the original staff report (knowledge of Main Street principles,
previous experience with downtown strategic planning, adequacy of proposed methods of
obtaining input from businesses and other community members on a wide variety of issues,
proposed final report content and cost), the chosen applicant was exemplary in every category.
Committee members agreed that the consultant has strong knowledge of the community, has a
strong understanding of how to develop a wide base of community input and a broad scope of
issues, as well as a strong sense of economic principles and quality of life issues. The proposal
was, of the three, determined to best meet the objectives of the planning process and to offer
valuable, and achievable, goals for the future. The feeling of the committee is that the proposal
does not reinvent the wheel but offers more than "cookie cutter" solutions
develop a plan specialized to our community's needs. RECEIVE
AUG t 12000
SLO CITY CLERK
Downtown Strategic Plan(Supplement)
Page 2
Highlights of the Proposal
The consultant acknowledges that communities are looking for more sustainable economic
development strategies, convenient shopping closer to home, entertainment, a sense of place and
community and that a desired quality of life be preserved. However, the consultant also
understands the difficulty in maintaining a healthy balance of commerce and livability while
dealing with a myriad of "real" issues like pedestrian, bicycle and automobile circulation in
concentrated areas, parking, chains versus independents, etc. To protect and capitalize our
assets, the consultant proposes to develop a plan that:
1) Maintains a healthy balance of commerce and livability while preserving the unique small
town quality of a downtown district
2) Documents the Downtown's competitive position as the regional marketplace
3) Identifies short and long term strategies that will help maintain and strengthen the vitality of
Downtown and the Downtown Association
4) Sets benchmarks for monitoring the ongoing health of the Downtown
References
A reference check with Ken Hiatt of the City of Davis revealed that Davis is highly pleased with
Mr. Eichenfield's performance as a team participant in developing a Downtown Strategic Plan
for that community in.October, 1999. Mr. Eichenfield worked with City staff and California
Main Street staff to develop the plan. Mr. Hiatt stated that he felt Mr. Eichenfield was very
professional, positive and prompt and that the City of Davis was very "happy" and pleased with
the results based on specific tasks that Mr. Eichenfield had recommended. Other references have
been contacted and return calls are anticipated.
CONCURRENCES
City Administrative staff concur with this recommendation.
FISCAL EWPACT
Initially, Council approved a project amount of$25,000. In a subsequent meeting they indicated
they would consider additional funding if the scope of work desired proved more costly than that
amount. Indeed, all three proposals were above the base amount with Jeffrey Eichenfield &
Associates submitting the lowest priced proposal at $35,400. That price, however, does not
include a second town hall meeting as requested by Council and is considered necessary to the
process of obtaining broad-based community input. Nor does it contain any contingency
funding.
The review committee and the Downtown Association Board of Directors concur that the initial
base amount of$25,000 was too low to achieve the goals set forth in the RFP and that to trim the
scope of work to fit the budget would diminish the integrity of the project. The $35,400
quotation submitted seems realistic after reviewing the list of tasks and related expenses.
In considering the cost of the additional town meeting (see Step 8b in the proposed work scope,
Attachment 1), it was felt at first that the additional $7,850 requested for this activity seemed
Downtown Strategic Plan(Supplement)
Page 3
high. However, the preparation for the extra meeting will be intensive and Doug Loescher from
the National Trust for Historic Preservation, presenter at the town hall meeting, must travel from
Washington, D.C. to San Luis Obispo. Therefore staff has concluded that the additional cost is
not excessive.
Staff believes that it is important to hold two community forums, even at an additional cost for
the second. The first forum simply takes input. The second town hall meeting will allow the
community to respond to a draft report and take part in developing priorities for implementing
actions. By doing so, closure will be provided to the process and the community will have a
greater "buy in" of the final report. Therefore, staff recommends spending the additional $7,850
for this task.
Total cost of the project is as follows:
Initial proposal $35,400
Additional meeting 7,900
Contingency at 10% 4.300
Total $479600
Less available budget (25,000)
Additional funding needed $22,600
Funding for this project is not available within existing resources. As such, we recommend
appropriating $22,600 from the unreserved General Fund balance. Based on the 1999-01
Financial Plan Supplement and Council approved changes since then, this will result in an ending
fund balance that is 21.4% of operating expenditures compared with our policy minimum of
20%.
ALTERNATIVES
1) Fund the Strategic Plan at the submitted amount of $35,400 with a ten-percent contingency
for a total of$38,940. Staff does not recommend this option because it does not include the
additional town hall meeting requested by Council, which is considered vital to the overall
process and the final report.
2) Reduce the tasks included in the proposal to the base amount of $25,000. Staff does not
recommend this option because the integrity of the process would be diminished resulting in
an inadequate report.
3) Re-advertise the project. Staff does not recommend this option, as the end result would most
likely be similar to the present response, given the number of RFP's mailed out and the
limited response.
4) Do not proceed with the project. This option is not recommended because it is felt by both
the Downtown Association and the City Council, following a recommendation by Alan
Kotin, PRC Kotin, that the Downtown needs a Strategic Operating Plan in order to position
Downtown Strategic Plan(Supplement)
Page 4
itself for continued health and vitality in the face of future competition from outlying
commercial districts. Staff believes that Council concurred with Kotin's analysis by voting
to approve funding for the plan.
ATTACHMENTS
1) Work scope of proposal
2) Agreement
Statement of Interest (Proposal) for Downtown Strategic Operating Plan submitted by Jeffrey
Eichenfield & Associates and Doug Loescher, National Trust for Historic Preservation National
Main Street Center has been provided to Council Members and is available in the City Clerk's
Office
ATTACHMENT 1
DRAFT SCOPE OF WORK
SLO DOWNTOWN ASSOCIATION AND THE CITY OF SAN LUIS OBISPO
DOWNTOWN STRATEGIC PLAN
overview
The new century is a great time for downtowns. After decades of building sprawling
suburban developments, our busy society is looking for more sustainable economic
development strategies. We want convenient shopping nearer to our homes. We'd prefer to
shop outdoors. We want to be entertained when we shop. We want to live where there is a
sense of place and community, and we want to know that the quality of life in our
communities will be preserved. Study after study tells us that a sense of place and
community will be critical for successful economic development in the decades to come.
But even in this context, it is sometimes difficult to maintain a healthy balance of commerce
and livability while preserving the unique small town quality of a downtown district New
downtown infill projects spur investor confidence and increase pedestrian traffic, but they
are often reminders that national chains and entertainment uses are taking the place of some
independent retailers in today's marketplace. Pedestrian, bicycle and automobile circulation
issues are increasingly important when populations rise in a concentrated area. Parking
demand remains a complex issue that affects, and is affected by, the availability and use of
other modes of transportation. Downtown must have a strong enough market niche to
differentiate itself from other commercial centers.
These trends may produce apprehension or fear in some, but they are good news for
communities like San Luis Obispo that are knowledgeable about their economic potential
and protect and capitalize on their existing, unique and historic downtown assets.
As described in the Strategic Plan RFP, the SLO Downtown Association and the City of San
Luis Obispo want to develop a plan that documents the downtown's competitive position in
the regional marketplace, identifies short and long term strategies that will help maintain and
strengthen the vitality of downtown and the downtown association, and sets benchmarks for
monitoring the ongoing health of the downtown. These strategies should be based on solid
market and economic data, the experience of a consultant team well-versed in downtown
development and the Main Street Approach, and input received from residents and the
downtown community.
Proposed Activities
Working under a contract with the Association, Jeffrey Eichenfield & Associates and the
National Main Street Center will perform the following tasks:
Jeffrey Eichen field&Associates
Task 1: Review Existing Planning Documents. and Background Materials
To clarify the issues facing downtown, the Consultant Team will review any relevant data,
surveys, studies, workplans and marketing materials published by the City and the
Association; the fiscal impact analysis for the Madonna Road project; any market analyses
available from the developer of the Palm Street/Court Street/Chinese Historic District
project; and other materials that may be appropriate. These materials will help the Team to
evaluate the market context, business mix, building stock, development environment, public
planning and programming context, organizational direction, and volunteer capacity. This
review will also help identify individuals and organizations to interview in later phases of the
project. The Team will enlist the Client's assistance in gathering these documents. We
understand that although a retail market analysis for the downtown has not be performed,
adequate data exists in these other materials. No new economic analysis is proposed.
Primarkresponsibility:JEA
Task 2: Downtown Association Member Survey
To assure membership support and participation, the Consultant Team will survey each of
downtown's 550 businesses about their vision for downtown and ideas for how the
Downtown Association can achieve that vision. Survey questions will be developed by the
Consultant Team with input from the Association and the City. It will be the Associations
responsibility to print and mail the surveys to the downtown businesses. To more easily
engage the business community, the Association would also put the survey onto a web page
with the ability for people to email their responses to the Consultant Team. The Consultant
Team will tabulate and summarize the responses. Results could be tabulated based on certain
criteria (years in business, chain vs. independent, retail vs. service, etc.) if appropriate.
Stamped, self-addressed envelopes and an incentive (such as a chance to win a dinner for
four) should be offered to encourage businesses to return their surveys.
Primary responsibility JEA
Task 3: Driving and Walking Tour
With guidance from local leaders, the Consultant Team will complete a one-day driving and
walking tour of downtown and competitive and complimentary shopping areas. The tour
will provide critical "visual data" on several key topics.
• What characteristics help to make the business district a cohesive and recognizable
area? What characteristics detract from that?
• What are the observable characteristics of the district's businesses? (!'hese may
include storefront appearance,window display presentation, signage, store hours,
customer service, marketing and merchandising practices.)
• In terms of business operating practices,which strengths might be profited from and
which weaknesses addressed?
• Which businesses and market niches seem to be thriving and which do not;,
• What anchors does the district include and what are their characteristics?
• What consumer markets do the businesses seem to target?
Jeffrey Eichen field&Associates 2
• What are the conditions and characteristics of the surrounding residential
neighborhoods?
• What types of competing retail centers are in the trade area?What is their business
mix and marketing strategy?
• How might downtowns business mix be improved to capitalize on market potential?
• What are the number, condition, appearance and significance of vacancies?
• Is there Association activities in evidence?
Primary responsibility:JEA and NMSC
Task 4: Stakeholder Interviews
With initial assistance from the Client, the Consultant Team will conduct interviews with
various downtown stakeholders. The purpose of these interviews will be to better
understand current issues impacting downtown vitality. We anticipate that up to 12
informational interviews will be conducted over two consecutive days following the walking
and driving tour. These may be done with individuals or groups. Although the interviews
will be confidential, and specific responses will not be attributed to individual sources, the
general and specific findings that emerge will be summarized and documented in the
Strategic Plan. The Consultant Team will develop a list of interviewees in consultation with
the Association and the City. Association or City staff will schedule the interviews, recruit
interviewees, and perform meeting room arrangements. Groups to interview may include:
• Business owners (from the program area)
• Property owners (from the program area)
• Residents
• City officials and staff
• Association Board Members, committee members, and staff
• Chamber of Commerce; civic, arts, culture and historic preservation organizations
• Major employers, corporations, and institutions.
• Real estate professionals and developers
• University officials and students
• County officials and staff
The Consultant Team will ask participants to discuss their perspectives on a variety of topics:
• Downtown's economic health
• Vision for the future
• Downtowns economic, social, civic, physical and visual strengths and weaknesses
• Development plans, policies, programs and projects
• Roles and responsibilities of stakeholder organizations
• Leadership talents and motivation
• Volunteer talents, motivation and recruitment
• Existing and potential market niches
• Characteristics of area neighborhoods and local trade areas
Jeffrey Eichen field&Associates 3
• Market opportunities and constraints
• Recommendations for priority downtown activities
Primary responsibility:JEA and NMSC
Task 5: Town Hall Meeting #1—A Vision for Downtown
As mentioned in Task 3, gathering input from key stakeholders will be a very important part
of the project. The stakeholder interviews will be useful to get answers to targeted
questions. But the "Town Hall" format, as well as Internet response opportunities, will be
used to more broadly educate, obtain consensus, and present findings.
The first Town Hall meeting will be a downtown visioning session. This will begin with a.
dynamic presentation about downtowns in America today--the role downtowns are playing
in our economy and how we keep them healthy. This will be followed by group breakouts in
which participants will first discuss "what I want our downtown to be." They will then be
asked to identify downtown strengths and weaknesses as compared to competitive shopping
areas, and opportunities and constraints to continued vitality and meeting that vision. (It will
be made clear that physical planning and parking are being handled through a separate
process.) Group results will then be reported back to the assembled audience. This session
will be held the same week as the driving/walking tour and the informational interviews.
Association or City staff would schedule the meeting, promote the event, and make meeting
room arrangements. To engage those who are unable to attend this Town Hall, the
Association would create a web page with key photos and talking points from the day, and
the ability for people to e-mail their opinions to the Consultant Team.
Primary responsibilitP NMSC
Task 6: Identify Downtown's Competitive Position
Using the data collected in the above tasks, the Consultant Team will identify the consensus
vision for downtown, downtown's primary and secondary target markets, and a draft
competitive position statement for downtown for review by the Association and the City.
Primary responsibility JEA and NMSC
Task 7: Strategic Recommendations
Based on the infonnation gathered from the previous tasks, the Consultant Team will
finalize a series of strategic goals, objectives and recommended actions. Such
recommendations may include marketing, tourism, internet presence, business retention,
business recruitment, office and mixed use development, streetscape, art and cleanliness
programs, maintenance and security, historic preservation, association operations, and
membership development and involvement. The Team will also analyze how downtown
business operations and the Association's current activities match the vision and competitive
position statement. Cost estimates and funding options will be provided where possible.
The strategic recommendations will be presented by topic area, and summarized on a 5-Year
Action Plan spreadsheet. General benchmarks to use to measure success will be provided.
Primary responses JEA and NMSC
Jeffrey Eichen field&Associates 4
Task 8: Deliver Draft Report to the City and the Association Board
The Consultant Team will deliver its draft report to the Association staff for distribution and
comment. Comments will be incorporated into the final report
Primary responsibility:JEA
OptionalTask 8a: Present Draft Strategic Recommendations
The Consultant Team could present its draft strategic recommendations at a special meeting
of Association and City representatives. This would be a two-hour weeknight meeting.
Association or City staff would schedule the meeting, send out meeting notices, and perform
meeting room arrangements. (This Task is shown as an option in the budget breakdown.)
Primary responses JEA
OptionalTask 8b: Town Hall Meeting #2-- Prioritizing Key Strategies
The goal of this session would be to engage the community in a further dialogue about some
of the possible key strategies identified by the Consultant Team. The session would begin
with a presentation of the community vision and downtown position statements developed
in prior tasks, and an outline of key recommended strategies. Attendees would be asked to
prioritize these strategies according to importance, and to offer their ideas and solutions. To
engage those who are unable to attend this Town Hall, the Association would create a web
page with key photos and talking points from the day, and the ability for people to e-mail
their opinions to the Consultant Team. The input received would help the Association, the
City, and the Consultant Team to refine and prioritize strategies. Association or City staff
would schedule the meeting, promote the event, and make meeting room arrangements.
(This Task is shown as an option in the budget breakdown.)
Primary respon� NMSC
Task 9: Final Report
The final product will be produced in a simple report format with a few selected
photographs and graphics. Specific elements will include the following.
■ An overview of purpose and methodology.
■ A discussion of current conditions, and outside threats and opportunities that could
impact the economic vitality of the district. This will include trends in the marketplace,
population demographics, competition, etc.
■ A discussion of the community's vision for downtown, primary and secondary target
markets and the district's competitive position statement.
■ Strategic Recommendations.
• A list of next steps for the Association and the City to take, including short, medium and
long term priorities and responsibilities for implementing the strategy.
• Benchmarks.
• Appendices summarizing public input.
Primary responsibift. JEA
Jeffrey Eichen field&Associates 5
Task 10: Present Final Report to the City Council
A Consultant Team member will.attend one City Council meeting where results of the
Strategic Plan are presented for approval.
Primary responsibili T JEA
Budget
$35,400*
A budget detail is attached. Tasks may be added or deleted to suit the Association and City's
needs and budget A final scope and budget will be developed after further refinement from
the Association and the City.
*Does not include Tasks 8a or 8b, or creation of web site pages.
Jeffrey Eicken field&Associates 6
ATTACHMENT 2
AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day
of , by and between the SLO Downtown Association, a municipal
corporation,hereinafter referred to as SLO Downtown Association,and Jeffrey Eichenfield&Associates.
WITNESSETH:
WHEREAS, on June 23,2000, SLO Downtown Association requested proposals for developing a Strategic
Operating Plan per Specification No.90154.
WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by SLO
Downtown Association for said services.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter
contained,the parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered,
as first written above,until acceptance or completion of said services.
2. INCORPORATION BY REFERENCE. SLO Downtown Association's Specification No.
90154 and Contractor's proposal dated ,are hereby incorporated in and made a part of this Agreement.
3. DOWNTOWN ASSOCIATIONS OBLIGATIONS. For providing services as specified in this
Agreement, SLO Downtown Association will pay and Contractor shall receive therefore compensation in a total
sum not to exceed$47,600.
4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements
hereinbefore mentioned to be made and performed by SLO Downtown Association, to do everything required by
this Agreement and the said specification and as indicated in the Statement of Interest dated July 26, 2000. Said
work scope will include optional task 8b of the Statement of Interest.
5. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement
shall be in writing and shall be effective only upon approval by the Board of Directors or Administrator of the SLO
Downtown Association.
6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral
agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of
any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties
hereto.
7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage
prepaid by registered or certified mail addressed as follows:
SLO Downtown Association SLO Downtown Association
1108 Garden St.Suite 209
San Luis Obispo CA 93401
Contractor Jeffrey Eichenfield&Associates]
1563 Solano Avenue#491
Berkeley,CA 94707
8. AUTHORITY TO EXECUTE AGREEMENT. Both SLO Downtown Association and
Contractor do covenant that each individual executing this agreement on behalf of each parry is a person duly
authorized and empowered to execute Agreements for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year
first above written.
ATTEST: SLO Downtown Association
By:
City Clerk Administrator
APPROVED AS TO FORM: CONTRACTOR
By:
N. 110 . - AGENDA
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(POCOUNCIL N7
August 11, 2000 � ''`� ❑
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FROM: John E IL
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SUBJECT: Dow town Strategic Plan—Agenda Item 4 on 8/15/00 Council Meeting
Due to my a./August ce from the August 15`s Council meeting, I wanted to share my thoughts
regarding the owntown strategic plan.
I am supportive of the strategic plan proposal submitted by Jeffrey Eichenfield. It is important as
we face renewed competition on the edge of our city that we support continued economic
development and planning in our downtown core. This proposal reflects main street concerns
and operational issues while involving the community-at-large in our downtown economic,
social,civic,physical and visual strengths.
I would further recommend that Optional Task 83 be included in the funding for this study. It is
important that we not short-change ourselves with an incomplete report that does not include the
broad spectrum of our community in its analysis in the final presentation to the city.
Thank you in advance for your consideration on this matter. See you when I get back.
JE:ss
RECEIVED
AUG 1 1 2000
SLG Ca`' ' CLERK