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CITY COUNCIL AGENDA ITEM NO. 08



Meeting Date: October 22, 2002

Subject/Title: Authorize the City Manager to execute a professional services agreement not to exceed $41,500 with Sam Driggers to prepare a Brentwood Manufacturing Attraction Strategic Plan.

Submitted by: Howard Sword, Economic Development Director

Approved by: John Stevenson, City Manager

RECOMMENDATION
Authorize the City Manager to execute a professional services agreement not to exceed $41,500 with Sam Driggers to prepare a Brentwood Manufacturing Attraction Strategic Plan.

PREVIOUS ACTION
None.

BACKGROUND
The City of Brentwood’s economic development efforts during the past three and on half years have focused on the following items:

 General Plan update to provide an adequate amount of strategically located land to accommodate the City’s long term economic and fiscal goals.

 Economic Development Strategic Plan to provide research and survey data to support economic development activities.

 Provide staff to the Brentwood Redevelopment Agency to support and identify commercial, retail, and industrial development programs, business assistance programs, public improvements and facilities programs, and the assistance and participation in the expansion and improvement of the supply of very low, low and moderate income housing within the Merged Redevelopment Project Areas.

 Negotiate and process $1,767,000 of PEC / RDA Grants and $940,000 of Fee Deferrals.

 Sub-Regional Demographic reports to support the attraction of national retail projects. Entitlements of approximately 1,000,000 s.f. of retail projects. Construction of a 260,000 s.f. Community Shopping Center.

 Construction of the Brentwood Education and Technology Center.

 Development of the Sunset Industrial Complex to accommodate sub-regional medium industrial demand.

 Entitlements of approximately 400,000 s.f. of office / industrial projects. Current construction of approximately 75,000 of flex-tech / office buildings.

One of the primary challenges facing our economic development is the absorption of the flex –tech / office space under construction. Most of this space is being developed as speculative development and tenants must be attracted to occupy the space. These tenants, as identified in our Strategic Plan, will tend to be smaller companies or divisions of larger companies that will be attracted to Brentwood because of the sub-region’s large trained, educated, and vertically integrated labor base, relatively affordable housing and work space, and the generally high standard of living. A target group of perspective businesses are companies that rely on manufacturing a product in order to justify their real estate costs of doing business and need our available labor base to further their objectives.

The scope of work contained in the recommended contract will accomplish the following objectives.

 Provide a strategic plan to interest, recruit and site manufacturing firms in Brentwood.

 Increase awareness within the Bay Area manufacturing community as to the cost competitiveness and other advantages of a Brentwood location.

 Provide tools for accomplishing this mission.

The contract will will achieve these objective through accomplishing the following tasks.

 Recommend industrial sectors (using SIC codes) and specific companies for an initial attraction campaign and assist with initial contacts of targeted companies.

 Conduct a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis to aid in identifying potential target industries and assist with the crafting of a marketing campaign.

 Assist in the development and implementation of a Bay Area manufacturing survey, targeting firms within selected industrial sectors. This will serve as a barometer for issues and the initial contact for potential relocation clients.

 Identify and package various business incentives available to manufacturers seeking to relocate to Brentwood.

 Identify, recommend and assist in the development of marketing strategies and tools.

 Submit a final report.


FISCAL IMPACT
$25,000 of this contract will be charged to our $100,000 Inter-Regional Partnership Grant for Business Attraction. The remaining $16,500 will be charged to the Economic Development Contractual Services Fund #100-1204-70240.

ATTACHMENT
Scope of Work

Exhibit A

SCOPE OF WORK
Brentwood Manufacturing Attraction Strategic Plan


In an effort to manage growth, mitigate negative impacts, attract businesses and channel future development for the benefit of Brentwood’s citizens, the City’s Economic Development Department (EDD) has requested assistance with crafting a manufacturing attraction strategy for addressing one aspect of such growth – the housing to jobs imbalance.

A proactive decision has been made with the outsourcing of the initial planning for such a campaign to an expert consultant. This scope of work provides a plan of action for identifying and recruiting Bay Area manufacturers and assisting them in relocating their operations in the City of Brentwood. The following proposal is designed to assess, evaluate, and provide an intelligent framework for how best to proceed in identifying and recruiting firms for relocation to Brentwood. 


PURPOSE of CONTRACT

• Provide strategic plan to interest, attract, recruit and site manufacturing firms in Brentwood.
• Increase awareness within the Bay Area manufacturing community as to cost competitiveness and other advantages of a Brentwood location.
• Provide tools for accomplishing this mission.


TASKS and RESPONSIBILITIES

Under the terms and conditions of this Agreement, the Contractor shall complete the following tasks within the timeframes identified in the Milestones section.

1. Recommend industrial sectors (using SIC codes) and specific companies for initial attraction campaign and assist with initial contacts of targeted companies.

• Perform analysis of current manufacturing base in Brentwood.
• Identify emerging industrial clusters.
• Determine most suitable industries for Brentwood emerging manufacturing base.

2. Conduct Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis to aid in identifying potential target industries and assist with crafting of a marketing campaign.

• Provide initial snapshot of Brentwood for manufacturers attraction campaign.
• Positive data-points incorporated into attraction campaign.
• Helps narrow target industrial sectors.

3. Assist in the development and implementation of a Bay Area manufacturing survey, targeting firms within selected industrial sectors. This will serve as a barometer for issues and the initial contact for potential relocation clients.

• Develop survey instrument with EDD and subcontractor (MANEX), submitting final draft for approval.
• Administer initial survey, working with subcontractor.
• Analyze and identify Bay Area manufacturers preferences, issues, concerns and potential for relocation.
• Follow-up on positive responders.
• Final product used for attraction effort, media and city distribution event.
• Revise final analysis of Brentwood SWOT based on survey results.


4. Identify and package various business incentives available to manufacturers seeking to relocate to Brentwood.

• Review federal, state, county and local agencies for financial instruments, job training, tax credits, “fast track permitting,” etc.
• Develop business incentive fact sheet.

5. Identify, recommend, and assist in the development of marketing strategy and tools.

• Develop plan and timeline: recommend 18-month marketing timeline.
• Recommend and assist in development of tools and materials (industry specific attraction fact sheets, tri-fold brochure, mail campaign letters, financial incentives sheet, etc).

6. Submit final report.



MILESTONES

DESCRIPTION AGREEMENT TERM IN MONTHS
1 2 3 4
Task 1 - Recommend industrial sectors (using SIC codes) and specific companies for initial attraction campaign and assist with initial contacts of targeted companies. X X X X

Task 2 - Conduct Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis to aid in identifying potential target industries and assist with crafting of a marketing campaign. X X 

Task 3 - Assist in the development and implementation of a Bay Area manufacturing survey, targeting firms within selected industrial sectors. This will serve as a barometer for issues and the initial contact for potential relocation clients. X X 

Task 4 - Identify and package various business incentives available to manufacturers seeking to relocate to Brentwood. X X 

Task 5 - Identify, recommend, and assist in the development of marketing strategy and tools. X X X

Task 6 – Submit final report. X

BUDGET

Budget Line Item Total
Consultant
(335 hours @ $100.00 per hour) $33,500.00
Subcontractor – Survey $8,000.00 (to be negotiated)
Operating Expenses (Included in consultant fee)
Not to Exceed Total $41,500.00

RESPONSIBILITIES and TERMS

The Contractor will research, examine, and provide specific recommendations and assist the City of Brentwood’s Economic Development Department (EDD) with their ongoing business attraction campaign. This will allow EDD to concentrate on current internal projects while outsourcing the development of a narrow and focused search externally, targeting emerging technology and mature manufacturers seeking to relocate their businesses.

The terms of contract budget, timeline, reporting, and cancellation of contract are as follows:

Contract Budget: $41,500.00 

Timeline: The duration of the contract is to last approximately four months, with specific deliverables and payment set accordingly. Either party is able to withdraw from the contract with 15 days notice and with deliverables and payment due at the point in time of contract termination.

Reporting: The Contractor will meet with the EDD Director at his discretion no less than every two weeks with specific deliverables, as agreed to in advance by both parties, due on said dates.
City Administration
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