DATE: September 6, 2022
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, County Administrative Officer
SUBJECT: Retroactive FY 2022-23 Agreement with The Economic Development Corporation Serving Fresno County
RECOMMENDED ACTION(S):
TITLE
1. Make a finding that it is in the best interest of the County to waive the competitive bidding process consistent with Administrative Policy No. 34 for unusual or extraordinary circumstances for the solicitation of services to promote and market the resources and economy of Fresno County; and
2. Approve and authorize the Chairman to execute a retroactive sole source Agreement with The Economic Development Corporation Serving Fresno County to promote and market the resources and economy of Fresno County, effective July 1, 2022 through June 30, 2023 ($188,000).
REPORT
Approval of the recommended actions will ensure that Economic Development Corporation serving Fresno County (EDC) provides 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, including the revision of the County’s Comprehensive Economic Development Strategy (CEDS), to the EDC. At the drafting of this Board Item, it is expected your Board will adopt funding as proposed in the FY 2022-23 Recommended Budget.
RETROACTIVE AGREEMENT:
The recommended agreement is retroactive to July 1, 2022. This agreement has been delayed so that it may include recent updates and funding for the preparation of the CEDS.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
It is requested that the County waive the competitive bidding process under Administrative Policy No. 34 under the “unusual or extraordinary circumstances” exception, as the EDC is the only vendor suited, equipped, and authorized to perform economic development tasks and activity for the County, as provided above. The recommended action is consistent with the Board’s ongoing assignment of the County’s current economic development responsibilities, including the revision of the County’s CEDS, to the EDC. The Internal Services Department - Purchasing concurs with the Department’s request to waive the competitive bidding process.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The total compensation of $188,000 includes $38,000 for core services, $50,000 for continued work on the proposed Business and Industrial Campus, and $100,000 to initiate the five-year CEDS update. Sufficient appropriations are included in the FY 2022-23 Recommended Budget in Org 2540 Interest and Miscellaneous Expenditures, Account 7845 - Support of Organizations. Payments will be remitted after each FY 2022-23 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 CEDS. These objectives include job creation, diversification of economic base, and preparation of the labor force. The recommended agreement allocates funds ($188,000) to the EDC based on goals designed to target specific economic development tasks and activities, including:
1. 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, assistance can include location of product packaging, identifying financing options, screening for eligible tax incentive programs, and making referrals to partner agencies for additional services, such as employee recruitment, marketing, business plan development, and energy efficiency assessments.
2. Economic Development Objectives: EDC will maintain, monitor, and draft any required revisions of the County’s CEDS for the County’s approval, and help the County achieve its economic development objectives as set forth in the CEDS. EDC will work with the County to initiate the five-year CEDS update, including but not limited to, developing a grant application to the U.S. Economic Development Administration to request additional funding for the CEDS.
3. Proposed Fresno County Business and Industrial Campus: EDC will finalize a preliminary infrastructure funding and financing plan for the proposed Industrial Campus. EDC shall be available for outreach with property owners and representatives within the proposed Fresno County Business and Industrial Campus area to obtain input and feedback concerning the proposed project.
Copies of the EDC “Business Expansion, Attraction, and Retention Report” covering the four quarters in FY 2021-22 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 #32, September 7, 2021
ATTACHMENTS INCLUDED AND/OR ON FILE:
Sole Source Acquisition Request
On file with Clerk - EDC FY 2022 Quarter 1 Activity Report
On file with Clerk - EDC FY 2022 Quarter 2 Activity Report
On file with Clerk - EDC FY 2022 Quarter 3 Activity Report
On file with Clerk - EDC FY 2022 Quarter 4 Activity Report
On file with Clerk - Agreement with EDC
CAO ANALYST:
Ronald Alexander