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APPROVE CONTRACT WITH DELOITTE & TOUCHE LLP FOR THE DEVELOPMENT OF AN ECONOMIC DEVELOPMENT STRATEGIC ACTION PLAN
recommended action
RECOMMENDATION
It is recommended that the City Council by Motion:
1. Authorize a contract with Deloitte & Touche LLP in the amount of $220,000 for consulting services to prepare an Economic Development Strategic Action Plan.
2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
It is also recommended that the City Council authorize the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of the motion.
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Summary
In February 2021, the City published a Request for Proposals (RFP) seeking a firm to assist in the development of an Economic Development Strategic Action Plan for the City of Stockton. The City received 14 proposals, and after thorough review of the proposals, City staff selected Deloitte & Touche LLP. Staff recommends approval of a contract in the amount of $220,000 with Deloitte & Touche LLP to complete this work.
DISCUSSION
Background
The City of Stockton leadership team developed a one-page strategic plan to accomplish City Council goals. These strategies, plans and metrics guide and measure results and support the vision of making Stockton the best city in America to live, raise a family, and grow a business. The development of a new Economic Development Strategic Action Plan will help fulfill Council’s goals. The completed plan will create a roadmap of actionable items that will enhance the economic base and quality of life for the Stockton community. Areas of focus include:
1. Develop a robust economic development toolkit;
2. Tell Stockton’s unique story;
3. Support small businesses by serving their needs;
4. Continue to build a thriving entrepreneurial ecosystem;
5. Attract and retain high caliber businesses;
6. Make data-driven decisions; and
7. Define the City’s role in workforce development.
Present Situation
In February 2021, City staff prepared a Request for Proposals (RFP) seeking a firm to assist in the preparation of the Economic Development Strategic Action Plan. Fourteen proposals were received in response to the RFP. The Selection Committee, comprised of City Manager’s Office and Economic Development Department staff, evaluated the 14 proposals and four (4) firms were selected to be interviewed. The firms selected for interviews demonstrated the most applicable experience, expertise, and capacity, as well as the best strategic fit with the City’s identified scope and intended goals for the project.
In May 2021, the Selection Committee conducted interviews and selected Deloitte & Touche LLP (Deloitte) as the most qualified respondent. The vendor was selected based on its experience and tailored approach. The criteria used to evaluate the proposals and interviews included:
• Innovative and creative approaches to enhancing Stockton’s economy.
• Experience in economic development strategic planning and successful outcomes from the implementation of such plans.
• Completeness and adherence of the proposal to the scope and specifications outlined in the RFP.
• Feasibility, timeliness, and quality of the proposal.
• Total cost of the proposal and willingness to negotiate a contract acceptable to the City.
After reviewing the proposals and conducting interviews, the Selection Committee determined that Deloitte best understands the strengths and opportunities in Stockton that would help to develop a plan that positions the City to grow quality jobs, generate tax revenues, and increase wealth for its residents and businesses. In addition, Deloitte will incorporate actionable items that will address economic recovery due to the pandemic.
Deloitte’s proposed key personnel for this project bring diverse experiences to support Stockton’s future-oriented journey. Examples of Deloitte’s “Activation Roadmaps” for economic growth include the development of an action plan for the Central Coast to create quality jobs and sustainable opportunities to build a resilient and prosperous economy by focusing on business expansion, infrastructure, education, and housing. Another example includes the development of Washington DC’s Economic Strategy that looked at diversifying the District’s economy by creating jobs, fostering entrepreneurship and innovation, and advancing inclusive growth.
Deloitte’s project team is almost entirely California-based, but also includes national/global expertise and will be run out of the Sacramento/San Francisco offices, including a dedicated project coordinator based in Stockton.
The Selection Committee recommends that Deloitte be awarded a professional services contract (Attachment A - Standard Agreement Deloitte) in the amount of $220,000 for the development of an Economic Development Strategic Action Plan for the City of Stockton. The Strategic Action Plan is expected to be completed by Deloitte in approximately 3 months and will be presented to the City Council.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. The City does not have the internal resources to perform a comprehensive evaluation of the existing market, make predictions for emerging markets, conduct outreach and interviews, and develop an extensive strategic approach.
2. Use of the RFP process is appropriate for this Professional Services Contract because it relies on the evaluation of professional qualifications and performance as the basis for selection of a vendor. Use of the criteria helps ensure selection of a vendor that will provide professional, responsive, and timely service, which is in the public interest.
3. The City negotiated a contract following solicitation of competitive proposals in accordance with SMC section 3.68.070.A.3.
FINANCIAL SUMMARY
The cost for the contract with Deloitte & Touche LLP requires a one-time appropriation of $220,000. In FY 2020-21, Council approved a one-time General Fund appropriation of $65,000 for the development of an Economic Development Strategic Action Plan. The $65,000 General Fund appropriation has been requested to be reappropriated to FY 2021-22 in Economic Development account number 6000-400-630006-100. The remainder of the contract, $155,000, will be funded by the American Rescue Plan federal grant in the City’s Special Grant Fund for a total contract amount of $220,000.
Attachment A - Standard Agreement Deloitte & Touche LLP