Report Prepared by: Frank Quintero, Director of Economic Development
Title
SUBJECT: Approval of First Amendment to an Agreement for Professional Services with Chabin Concepts, Inc., to Expand the Scope of Service in an Additional Amount of $30,000 for a Total Contract Amount not to Exceed $80,000.00
REPORT IN BRIEF
Considers approving a first amendment to an agreement for professional services with Chabin Concepts, Inc., for an additional $30,000.00 to the original agreement amount of $50,000.00, with a total not to exceed $80,000.00.
RECOMMENDATION
City Council - Adopt a motion approving a first amendment to an agreement of professional services with Chabin Concepts in an amount not to exceed $80,000.00; and, authorizing the City Manager or the Assistant City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by staff; or
2. Approve, subject to conditions as specified by the City Council; or
3. Deny the request; or,
4. Refer back to staff for reconsideration of specific items as requested by the Council; or
5. Defer action until a specified date.
AUTHORITY
Charter of the City of Merced, Section 200;
CITY COUNCIL PRIORITIES
As provided for in the City of Merced 2019-2020 Adopted Budget
DISCUSSION
At the City Council meeting of April 20, 2020, the City Council engaged in a discussion regarding short-term and long-term considerations for community and economic assistance and recovery given the impacts of the COVID-19 pandemic. Prior to the discussion, Dr. Robert Eyler, Professor of Economics at Sonoma State University, gave a special presentation called “Economics in the Times of COVID-19.” The presentation focused on initial trends and impacts caused the COVID-19 pandemic to the local economy.
Additional funding for $30,000.00 is necessary for services related to responding to the COVID-19 impacts to the local economic base. Services include:
• Launching a website for small businesses to learn of available resources to help sustain their businesses and employees.
• Prepare materials for direct emails to businesses and social media posting on financial resources that may be beneficial to their operations.
• Prepare an application to the Economic Development Administration (EDA) Economic Adjustment funding for preparing a recovery strategy. EDA has funding to support communities with adjustment strategies.
• Arrange meetings and assistance with Dr. Robert Eyler to begin tracking and analyzing the City of Merced’s indicators and paths for recovery.
• Respond to COVID-19 assignments as directed by the City of Merced Office of Economic Development.
Chabin Concepts posted the website www.mercedbusiness-COVID19.com <http://www.mercedbusiness-COVID19.com> coordinating efforts and information with the Greater Merced Chamber of Commerce, Merced County Hispanic Chamber of Commerce, and Central California Small Business Development Center. Subsequently, City staff made over 5,000 calls and sent mailers directing businesses to the website. Advertisements were published in the Merced Sun Star and Merced County Times leading employer and employees to visit the website to learn of the resources available from the CARES Act and other organizations.
The economic development consultant will submit an application to the Economic Development Administration requesting funding to prepare an economic development recovery strategy. Dr. Robert Eyler will supplement and advise the City’s economic development recovery efforts by analyzing data and providing recommended actions.
Federal and State agencies and corporations are providing different forms of assistance to local governments and small businesses with rules and regulations regularly changing. Chabin Concepts is mining and evaluating the programs to determine which are best and applicable to the City of Merced and its business clientele.
Staff, with the assistance of Chabin Concepts, anticipates the COVID-19 economic development recovery efforts to be done in two tiers, short-term and long-term.
IMPACT ON CITY RESOURCES
Sufficient funding is available in Fund 001-2002-572-17-00, Economic Development - Professional Services for the First Amendment. A supplemental appropriation is not necessary.
ATTACHMENTS
1. First Amendment to the Agreement for Professional Services