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APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH THE SAN JOAQUIN PARTNERSHIP TO ASSIST WITH ECONOMIC DEVELOPMENT ACTIVITIES
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RECOMMENDATION
It is recommended that the City Council approve a motion authorizing the City Manager to:
1. Approve a 12-month professional services agreement in the amount of $76,500 for fiscal year 2016-17 with the San Joaquin Partnership;
2. Approve findings for an exception to the competitive bidding process.
It is further recommended that the City Manager be authorized to take necessary and appropriate actions to carry out the purpose and intent of the motion.
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Summary
Approving this motion will allow the City of Stockton (City) to enter into a 12-month professional services agreement with the San Joaquin Partnership (“SJP”) to assist with economic development activities. SJP leverages public and private resources to position San Joaquin County (County) as a major competitor in attracting targeted industries. SJP will supplement the efforts of the City’s Economic Development Department by continuing its focus on the attraction of new business, focusing on targeted industries such as agriculture and manufacturing, attracting high tech entrepreneurs from the Silicon Valley, and assisting with the implementation of the City’s Economic Development Strategic Plan (February 2015).
DISCUSSION
Background
On April 22, 1991, the Stockton City Council indicated its support, in concept, of the SJP. SJP is a public-private, non-profit organization focused on job creation and economic growth for San Joaquin County. On January 13, 1992, the City Council adopted Resolution No. 92-0029 authorizing an annual agreement for services with SJP and has authorized annual agreements since that time.
Present Situation
One of SJP’s primary objectives is to address key economic development issues within the County, as well as to assist individual municipalities, such as Stockton, in implementing its specific economic development strategies including recruitment and attraction of targeted industries, thereby positioning the County and City as a major competitor in the Central Valley and throughout California. SJP also assists in business retention and expansion efforts and plays a key role in marketing the many benefits of a County location to outside companies. During the past year, SJP assisted the City in attracting several new businesses to Stockton, including Crumb Rubber Manufacturing, SCB International, and Restaurant Technologies. SJP’s annual action plan titled “2016 Objectives” and SJP’s 2015-16 Annual Report, which outlines its funding and accomplishments, are attached hereto as Attachments A and B.
In 2015-16, SJP continued collaboration with the County in linking it to Silicon Valley and attracting tech executives and entrepreneurs to the area. To further this effort, the Partnership, participates at the annual TiEcon Expo in Santa Clara to market the County as a place for business and investment. TiEcon Expo focuses on fostering entrepreneurship and showcasing innovative companies. In July 2016, the Silicon Valley Business Journal published a supplement titled “Gateway to Growth” which featured innovation in San Joaquin County transportation and education. SJP also conducts strategic targeting on specialized industries, geographic target markets, and participate with organizations and in tradeshows that focus on business attraction for the County.
The Professional Service Agreement with SJP, attached hereto as Attachment C, includes the following activities outlined in the Scope of Services:
1. Strategic Planning
a. Assist in implementation of Stockton’s Economic Development Strategic Plan (February 2015).
b. Begin review of SJP’s County-wide Economic Development Strategy.
2. Business Attraction & Expansion
a. Focus on foreign direct investment and promote international trade.
b. Explore new options for generating business leads.
c. Participate in key trade shows, mission trips and site selection forums; include City representatives in these endeavors.
d. Increase emphasis on ag-related business attraction and expansion efforts, as well as additional core industries identified in City’s Economic Development Strategy.
e. Assist in positive messaging for San Joaquin County and Stockton.
f. Update the San Joaquin County Business and Community Profile.
3. Analysis and Research
a. Support the City’s efforts in conducting a cluster mapping process to identify existing firms, infrastructure and institutional assets relevant to the City’s core industries.
b. Coordinate with educational institutions to map K-12 and higher education resources relevant to business development.
SJP’s budget for calendar year 2016 is $918,087. The City’s contribution over the past several years has been $76,500. The City’s contribution represents approximately 8.3% of the entire SJP budget. Contributions from public sources represent 30.9% of the budget, with the remaining 69.1% coming from private investors and miscellaneous income. When SJP was originally established in 1992, the contribution of each jurisdiction was based on population. The contributions have remained fairly consistent over the years. Stockton is the largest contributor among the municipalities, but also gains the most client referrals from SJP when compared to other cities.
Findings
Pursuant to Stockton Municipal Code Section 3.68.070, there is an exception to competitive bidding requirements for sole source vendors in cases where the City Council has approved findings which support and justify exceptions to the competitive bidding process.
Therefore, the Council is asked to approve the following findings:
1. SJP is the only public-private membership entity in San Joaquin County focusing on business and job attraction.
2. All of the incorporated cities within the county, as well as San Joaquin County, are members, along with many of the major businesses in the County.
3. SJP is a unique organization, offering one-of-a-kind services to the residents of the County, including:
a. Conducting regional studies related to job creation.
b. Targeting, inviting, and hosting potential clients.
c. Engaging in educational and recruiting visits to benchmark regions. Producing marketing materials for San Joaquin County as a place of business.
4. The objectives and attributes that SJP offers to the City are in the public interest.
FINANCIAL SUMMARY
Funds for this agreement in the amount of $76,500 are appropriated and available in the Fiscal Year 2016-17 Budget in the Economic Development Department, General Fund Account Number 010-1760-510.
Attachment A - 2016 Objectives
Attachment B - San Joaquin Partnership’s 2015-16 Annual Report
Attachment C - Professional Service Agreement SJP