Report Prepared by: Stephanie Dietz, Assistant City Manager and Frank Quintero, Director of Economic Development.
Title
SUBJECT: Supplemental Appropriation to the Economic Development Opportunity Fund (074) for Consultant Services Relative to the High Speed Rail Heavy Maintenance Facility
REPORT IN BRIEF
Requesting a supplemental appropriation in the amount of $140,000 from the Economic Development Fund (074) to facilitate consultant services pertaining to the High Speed Rail Heavy Maintenance Facility.
RECOMMENDATION:
City Council - Adopt a Motion:
A. Approving a supplemental appropriation in the amount of $140,000 from the unreserved fund balance in Fund 074 Economic Development Opportunity Fund; and,
B. Approving the Professional Services Agreement with California Strategies and Advocacy, LLC, in the amount of $120,000.00; and,
C. Approving the Professional Services Agreement with Chabin Concepts, Inc. in the amount of $15,000.00; and,
D. Approving a contingency of $5,000.00 for travel, meetings, technical support, etc.; and,
E. Authorizing the City Manager or Assistant City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by Staff; or,
2. Approve, subject to conditions other than recommended by Staff (identify specific findings and/or conditions amended to be in the motion); or
3. Continue to a future meeting (date and time to be specified in the motion); or,
4. Deny.
AUTHORITY
Charter of the City of Merced, Section 200
CITY COUNCIL PRIORITIES
City of Merced FY 17-18 Budget, Section 7 - Economic Development, Objective #6, “Coordinate with High Speed Rail, ACE Train, and other projects that may serve as economic engines in Downtown Merced.”
DISCUSSION
The City of Merced staff desires to enter into Professional Service Agreements with California Strategies and Advocacy, LLC, in the amount of $120,000.00 and Chabin Concepts, Inc., in the amount of $15,000.00 in an effort to attract the High Speed Rail Authority’s Phase 1 Heavy Maintenance Facility to the City (Attachments 1 & 2).
In 2010, the City of Merced, County of Merced, and Greater Merced High Speed Rail Committee submitted two proposals to the California High Speed Rail Authority to site the coveted Heavy Maintenance Facility at either Castle Commerce and Aviation Center or on the southwest side of Mission Avenue and Highway 99. The Authority received 13 proposals from communities stretching from Merced County to Kern County seeking to secure the Heavy Maintenance Facility along with its 1,500 well-paying jobs and supporting industries.
The Authority did not select a final site for the Heavy Maintenance Facility. However, the High Speed Rail Authority Board chose Germany-based DB Engineering & Consulting USA, Inc., as its early operator at its meeting in November 2017. One of the tasks assigned to DB Engineering & Consulting is helping the High Speed Rail Authority evaluate sites for the Heavy Maintenance Facility.
The City Manager’s Office and Economic Development Department believe the timing is right to hire consultants to lobby and advocate for the City to the High Speed Rail Authority for the Heavy Maintenance Facility, and update and rewrite the previously submitted proposal for the Mission Avenue/Highway 99 site.
The Consultants: Staff is recommending the City Council approve a supplemental appropriation in the amount of $135,000.00 from the Economic Development Opportunity Fund (Fund 074) for the lobbying and advocacy and proposal rewriting services, along with a contingency fund of $5,000.00 for incidentals such as travel, meetings, and technical support.
California Strategies and Advocacy: (Phase I) Staff would rely on California Strategies and Advocacy to provide insight on all aspects of the High Speed Rail Authority including its senior staff and management, board members, development of the 2018 Business Plan, and policy and political developments. The consultant would also review past High Speed Rail history and actions leading to decisions influencing the future location of the Heavy Maintenance Facility. Documents and materials prepared for High Speed Rail consideration would be reviewed by California Strategies and Advocacy prior to submittal.
(Phase II) California Strategies and Advocacy would develop a public affairs plan which will consider project messaging, stakeholders, decision makers, timeline, and outreach. The consultant plans working with other interest groups and organizations to support Merced’s project, and introduce key legislators and industry leaders to Merced’s High Speed Rail team.
Chabin Concepts: Along with their partner DSG Associates, Chabin Concepts would be responsible for modifying the previous Heavy Maintenance Facility proposal submitted for the Mission Avenue and Highway 99 site. Besides collecting new information from staff and incorporating the information into a document, Chabin Concepts would approach the project similar to conducting a site selection analysis. The analysis includes comparing what Merced is submitting to the criteria established by the High Speed Rail Authority.
At this time, the Chabin Concepts proposal does not call for travel or the development of special maps, illustrations, or technical support. However, in the event that Chabin Concepts is called upon for technical support or to attend meetings, staff feels it is beneficial to set-a-side $5,000.00 in contingency for Chabin Concepts.
IMPACT ON CITY RESOURCES
Given the employment gain the Heavy Maintenance Facility offers, staff recommends appropriating $140,000 from Fund 074 (Economic Development Opportunity Fund,) unreserved fund balance for consultant services relative the High Speed Rail Heavy Maintenance Facility and contingencies.
ATTACHMENTS
1. Professional Services Agreement - California Strategies and Advocacy, LLC.
2. Professional Services Agreement - Chabin Concepts, Inc.