DATE: June 4, 2024
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Revenue Agreement with the Economic Development Corporation Serving Fresno County and Agreement with TIP Strategies, Inc. for Consultant Services to create a digitally integrated Comprehensive Economic Development Strategy.
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize Chairman to execute a Revenue Agreement with the Economic Development Corporation Serving Fresno County (EDC) to pay for the update of the Comprehensive Economic Development Strategy (CEDS) for the County and fourteen of its incorporated cities (excluding the City of Fresno), effective upon execution, ending upon the completion of the digitally integrated CEDS ($120,000);
2. Adopt Budget Resolution increasing FY 2023-24 appropriations and estimated revenues for the Public Works and Planning Department - Grants Org 5512 in the amount of $120,000 to cover costs associated with the update to the County’s CEDS (4/5 vote); and
3. Approve and authorize Chairman to execute an Agreement with TIP Strategies, Inc. for consultant services to create a digitally integrated CEDS, effective upon execution, not to exceed five consecutive years, which includes a three-year base term and two optional one-year extensions, total not to exceed $247,500.
4. Approve and authorize Director of Public Works and Planning, or his designee, to approve and execute written changes to the line items in the project budget to the Agreement with TIP Strategies, Inc., which when added together during the term of the Agreement, do not exceed ten percent (10%) of the total maximum compensation payable to TIP Strategies, Inc., and which do not result in any change to the maximum compensation amount payable to TIP Strategies, Inc.
REPORT
Approval of the first recommended action will approve and authorize an agreement between the County and EDC to fund the creation of the County’s CEDS using funds the County previously provided to EDC for the development of the CEDS. The second recommended action will allow the Department of Public Works and Planning to increase the FY 2023-24 appropriations and estimated revenues in the amount of $120,000 to fund the County’s CEDS update. The third recommended action authorizes the Chairman to execute an agreement with TIP Strategies Inc. to provide consultant services to create a digitally integrated CEDS for the County and fourteen of its incorporated cites (excluding the City of Fresno). The fourth recommended action will delegate limited signature authority to the Director of Public Works and Planning or designee to consider and approve written requests for budget revisions that do not exceed a maximum 10% of the maximum compensation under the agreement. The base term of the recommended agreement with TIP Strategies is three years, with two optional one-year extensions. The maximum total dollar amount of the Agreement is $247,500. This item is countywide.
ALTERNATIVE ACTION(S):
If your Board does not approve the recommended actions, the County will be unable to complete the update of the CEDS and will continue to be out of compliance with U.S. Department of Commerce Economic Development Administration (EDA), causing significant delays in the delivery of the project. If the CEDS is not updated, the County and 14 of the incorporated cities will not be able to apply for Federal EDA funds to improve the County’s economy. If the CEDS is not developed with the EDA funds, the Department will need to identify alternate funds to be used for the update. Your Board may direct staff not to utilize EDA grant funds that were awarded on June 27, 2023, and find other funds to update the County’s CEDS.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended actions. The maximum compensation that the County will through the recommended reimbursement agreement with EDC is $120,000. EDC shall also provide proof of $30,000 in EDC staff charges required as match to County as reimbursement reports are submitted to the EDA. The maximum amount of the recommended agreement with TIP Strategies, Inc. is $247,500 over the potential five-year term, which includes a 10% contingency. The recommended consultant agreement will be funded by an EDA grant, approved by your Board on March 28, 2023, and executed on June 27, 2023, as well as the funds from EDC. The consultant will be compensated at agreed hourly rates for services performed as set forth in the recommended agreement, plus the fixed fee, which will be partially invoiced at milestone intervals throughout the project’s duration.
DISCUSSION:
The project would update and digitally integrate the CEDS of the County and fourteen of its incorporated cities’ (excluding the City of Fresno). The CEDS is a strategy-driven plan for regional economic development designed to build capacity and guide an area or region’s economic prosperity and resilience. Fresno County General Plan Policy ED-A.4 requires the CEDS to fulfill the Federal requirement set by the U.S. Economic Development Administration for Federal grant fund eligibility.
An updated CEDS will help guide County officials, community stakeholders, private industry, and public investment toward building an inclusive and equitable resilient economy. The CEDS will position the County and its partner cities to draw down Federal and state dollars for key local projects related to urban planning, infrastructure improvements, downtown revitalization, business retention, workforce development, broadband expansion, and economic diversification.
The County contracts with the EDC on a yearly basis to conduct various economic development activities outlined in the Economic Development Element of the General Plan, including updating the County’s CEDS.
On September 7, 2021, the County allocated $100,000, and on September 6, 2022, $50,000 to EDC to initiate preparation of the CEDS update, including creation of a digitally integrated CEDS. The EDA funding will be used in combination with these previously allocated funds to complete the CEDS update.
The recommended agreement with EDC will utilize the funds previously allocated to EDC in 2021 and 2022 to hire a consultant to assist with the CEDS update. EDC will reimburse the County funds not to exceed $120,000 to pay for the consultant.
On March 28, 2023, the Department, in conjunction with the EDC, applied for a grant from the EDA to update a digitally integrated CEDS. The EDA awarded the Department a $150,000 grant.
The Department issued a formal Request for Proposals (RFP) on December 18, 2023, and received proposals from seven consulting firms by the deadline of January 12, 2024. A selection committee comprised of representatives from the Department’s Water and Natural Resources Division, County Administrative Office, Internal Services Department, and EDC reviewed and evaluated the proposals based upon approved criteria included in the RFP. TIP Strategies, Inc. was determined to be the most qualified firm based on the selection criteria.
The recommended agreement with EDC will be effective after your Board’s approval and will end with the completion of the CEDS. The recommended agreement with TIP Strategies, Inc. is for three years with two one-year renewals, to be authorized by the Department’s Director as necessary.
Approval of the recommended third action would retain TIP Strategies, Inc. to assist in the completion of the project on a cost plus fixed-fee basis.
The recommended agreement contains non-standard professional liability insurance ($2,000,000 annual aggregate instead of $3,000,000 annual aggregate), but the Department believes the benefits of entering into the recommended agreement outweigh the risks.
Approval of the fourth recommended action will delegate limited signature authority to the Director of Public Works and Planning or designee to consider and approve written requests for budget revisions that do not exceed a maximum 10% of the maximum compensation under the recommended agreement, which will provide flexibility in the event one budget category requires less funds that anticipated and another requires more funds.
OTHER REVIEWING AGENCIES:
Fresno County Economic Development Corporation
REFERENCE MATERIAL:
BAI #52, March 28, 2023
BAI #61, October 10, 2023
BAI #25, September 06, 2022
BAI #32, September 07, 2021
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Revenue Agreement with EDC
On file with Clerk - Budget Resolution
On file with Clerk - Agreement with TIP Strategies, Inc.
CAO ANALYST:
Salvador Espino