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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:
1. Authorizing the City Manager to execute a professional services agreement in the amount of $78,000 for fiscal year 2018-19 with the San Joaquin Partnership;
2. Approving findings for an exception to the competitive bidding process.
3. Authorizing the City Manager to take necessary and appropriate action 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 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 Ardex North America (expansion), United Pipe Supply, Donaldson Company and Vibra Healthcare. SJP’s 2018 outreach action plan titled “Marketing San Joaquin USA” and SJP’s 2017-18 Annual Report, which outlines funding and accomplishments for the SJP, and are attached hereto as Attachments A and B.
In 2017-18, SJP continued collaboration with the County and its communities to market into Silicon Valley using the “Greater Silicon Valley” brand. The primary goals are to attract new investment and expand Silicon Valley startups, technology firms, manufacturers, suppliers, and logistics companies into San Joaquin County communities. To further this effort, the Partnership, worked with the County to develop and pass a new attraction incentive known as the San Joaquin County Business Incentives Guide. SJP also conducts strategic targeting on specialized industries, geographic target markets, and participates with organizations and in tradeshows that focus on business attraction for San Joaquin County.
The Professional Service Agreement with SJP, attached hereto as Attachment C, includes the following activities outlined in the Scope of Services:
Baseline Services:
1. Business Attraction & Marketing
• Implement new options to generate business leads.
Participate in key trade shows, regional events, mission trips and provide leads to the City’s Economic Development (ED)Team; include City representatives in these endeavors. Focus on core industries such as ag tech, food processing, manufacturing and logistics
2. Innovation and Entrepreneurship
• Collaborate with iHub San Joaquin, Huddle, Café Coop, Hatch, and others to attract and support events/organizations, such as Makerspaces and Hackathons.
3. International Trade & Foreign Direct Investment
• Collaborate with the Port of Stockton and Northern CA World Trade Center on attracting foreign investment and increasing international trade.
• Host tours with potential foreign investors.
• Collaborate with partners to host workshop(s) for Stockton/San Joaquin County business on international trade.
Additional Services:
1. Social Media and Marketing
• Increase social media presence and update the website to include a visually appealing format to market Stockton and San Joaquin County.
• Updated marketing collateral & business attraction tools to demonstrate distinct competitive advantages of Stockton over competitor markets.
• Well-crafted RFI responses which include modern formatting and images.
SJP’s budget for calendar year 2018 is $961,483. This year, the City’s contribution of $78,000 will represent approximately 8.1% of the entire SJP budget. Contributions from public sources, private investors and miscellaneous income represent other funding sources for the SJP budget. 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 typically 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 $78,000 are appropriated and available for the Fiscal Year 2018-19 Budget in the Economic Development Department, General Fund Account Number 010-1760-510.
Attachment A - Marketing San Joaquin USA
Attachment B - San Joaquin Partnership’s 2016-17 Annual Report
Attachment C - Professional Service Agreement with SJP