DATE: September 24, 2024
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, County Administrative Officer
SUBJECT: Retroactive FY 2024-25 Agreement with The Economic Development Corporation Serving Fresno County
RECOMMENDED ACTION(S):
TITLE
1. Under Administrative Policy No. 34 for competitive bids or requests for proposals (AP 34) determine that an exception to the competitive bidding requirement under AP 34 is satisfied and a suspension of competition is warranted due to unusual or extraordinary circumstances, and that the best interests of the County would be served by entering into an agreement with The Economic Development Corporation Serving Fresno County (EDC) as EDC is the only vendor suited, equipped, and authorized to promote and market the resources and economy of Fresno County; and
2. Approve and authorize the Chairman to execute a retroactive Agreement with EDC to promote and market the resources and economy of Fresno County, effective July 1, 2024 through June 30, 2025 ($100,000).
REPORT
Approval of the recommended actions will ensure that EDC continues to provide businesses with technical assistance to encourage the location of new industry and the retention and expansion of existing businesses within the cities and unincorporated communities of the County. This item is countywide.
ALTERNATIVE ACTION(S):
Your Board may opt not to approve the recommended action. However, the recommended action is consistent with the Board’s ongoing assignment of the County’s current economic development responsibilities.
RETROACTIVE AGREEMENT:
The recommended agreement is retroactive to July 1, 2024. The recommended agreement has been delayed so that it may include recent updates.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
It is requested that the County find under AP No. 34 that an exception to the competitive bidding requirement is satisfied and a suspension of competition is warranted due to unusual or extraordinary circumstances, as the EDC is the only vendor suited, equipped, and authorized to perform economic development tasks and activity for the County. The recommended action is consistent with the Board’s ongoing assignment of the County’s current economic development responsibilities. The Internal Services Department - Purchasing concurs with the Department’s assessment that this satisfies the exception to the competitive bidding process required by AP 34.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The maximum compensation of $100,000 is funded with Net County Cost, which is included in the FY 2024-25 Adopted Budget in Org 2540 Interest and Miscellaneous Expenditures, Account 7845 - Support of Organizations. Payments will be remitted after each FY 2024-25 quarter. EDC is required to submit quarterly activity reports along with invoices within 30 days after the end of each quarter.
DISCUSSION:
Through the recommended agreement, the EDC agrees to continue providing overall expertise and assistance in achieving the objectives of the County’s Comprehensive Economic Development Strategy (CEDS). These objectives include job creation, diversification of economic base, and preparation of the labor force. The recommended agreement allocates funds ($100,000) to the EDC based on goals designed to target specific economic development tasks and activities.
Business Technical Assistance
In an effort to encourage the location of new industry within the cities and unincorporated communities of the County, and to retain and expand those businesses on a one-to-one basis, business technical assistance will include support for financing, screening for eligible tax incentive programs, employee recruiting and training, utility rate reductions, and referrals to partner agencies for additional services.
Comprehensive Economic Development Strategy (CEDS):
EDC will co-lead the development of the County’s 5-Year CEDS update. EDC provided support to the County of Fresno on applying for, and receiving, a $150,000 U.S. Economic Development Administration grant to bolster this process. EDC will assist with implementation of the grant award in developing the 5-year CEDS update which will conduct extensive outreach to unincorporated areas and 14 cities.
Site Selection and Market Analysis
The EDC will respond on behalf of the County of Fresno with buildings and properties available to prospective clients and projects. EDC staff will provide customized materials, data analysis and documentation required to respond to Requests for Information or site selection requests on behalf of the County of Fresno. EDC will conduct routine market analysis on the availability of properties and buildings and track corresponding vacancy rates for information purposes. To increase inventory, EDC will engage with local property owners, developers, brokers and consultants to determine feasibility and develop projects for properties suitable for commercial and industrial development in the County of Fresno. EDC will conduct outreach required to project stakeholders, water districts and property owners, utilizing various communication methods such as phone calls, emails, letters, and on-site visits.
Employment and Training
The EDC serves as System Lead for the Good Jobs Challenge program, which endeavors to place 2,500 individuals into high-quality, in-demand employment opportunities by 2027. At no cost to the County, departments of the County of Fresno are eligible to participate as employers to prospective trainees participating in various training programs funded by the Good Jobs Challenge. To access Good Jobs Challenge resources to fill the County’s hiring needs, partnership language is included in the FY 2024-25 agreement. While there would be no costs to the County to participate as a potential employer, the recommended agreement allows County departments to work with EDC and grant-funded training providers to address hiring needs. In addition to County participation, EDC will work with existing and prospective client businesses to utilize the Good Jobs Challenge for customized training and hiring.
Lead Generation and Special Projects/Initiatives
To support the above-mentioned activities and objectives, EDC will obtain artificial intelligence (AI) predictive analytics software for lead generation to identify prospective companies prime for location and growth in Fresno County. Licensing a business intelligence platform will allow EDC and County staff to easily identify companies with a high probability of future expansion, along with the key decisionmakers behind them, allowing economic developers to proactively engage with companies with the highest potential for conversion.
EDC will support key strategic initiatives in alignment with the County’s General Plan and Comprehensive Economic Development Strategy.
Copies of the EDC’s FY 2023-24 quarterly activity reports are included for your Board’s review.
It should be noted that Board Member Brandau is on the Board of Directors for the EDC.
REFERENCE MATERIAL:
BAI #36, September 19, 2023
ATTACHMENTS INCLUDED AND/OR ON FILE:
Sole Source Acquisition Request
On file with Clerk - EDC FY 2024 Quarter 1 Activity Report
On file with Clerk - EDC FY 2024 Quarter 2 Activity Report
On file with Clerk - EDC FY 2024 Quarter 3 Activity Report
On file with Clerk - EDC FY 2024 Quarter 4 Activity Report
On file with Clerk - Agreement with EDC
CAO ANALYST:
Ronald Alexander