Loading...
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 mEmo�an�um T�"VV '�� (POCOUNCIL N7 August 11, 2000 � ''`� ❑ p!9_-;'•:UNn!G ❑rouCZ C:;F i TO: Council Col agues ❑:.;c:.Ir TEA.%J ❑REC Dln �lgi,�nt{ti�. ❑UTIL DIR 0-1Ld'h qV ❑PEAS DIR I FROM: John E IL �C VD.. 1 Wie� O� 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