Loading...
HomeMy WebLinkAboutProfessional Services Agreement for Planning Services with Prospera Business Network for Preparation of an Economic Development Plan Report compiled on July 14, 2008 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Andrew Epple, Planning Director Chris Kukulski, City Manager SUBJECT: Professional Services Agreement with Prospera Business Network MEETING DATE: Tuesday, Sept 2, 2008 RECOMMENDATION: Authorize the City Manager’s signature on the professional services agreement. BACKGROUND: The City Commission recently directed that staff work with Prospera Business Network to develop an economic development plan for the City. The contract for this work has been prepared. Authorization for the City Manager to sign the contract on behalf of the City is needed. UNRESOLVED ISSUES: None. FISCAL EFFECTS: The City Commission previously committed $25,000 to this project. Prospera is matching this amount with $25,000 of their own funds. An economic development plan is expected to have a favorable impact on the City’s financial position. ALTERNATIVES: As suggested by the City Commission. CONTACT: Please feel free to email Chris Saunders at csaunders@bozeman.net if you have questions prior to the public hearing on July 21st. Respectfully submitted, Andrew Epple, Planning Director Chris Kukulski, City Manager Attachments: Professional Services Agreement and scope of work 14 15 16 17 18 g5spJ' 222 I;,ttst NIain Strcct, Suite 102 Ilozonan, NIT 59715 Ph: 406.587.3113 lrx: 406.587.95(r5 Dear Bozeman City Commissioners: Thank you for considering our proposal to develop the City of Bozeman's Economic Development Plan. We remain committed to this project and ate ready to get started with your approval. Given the competing tequests for the City's Development Impacts Fund ("Big Box Fund"), we have reduced the proposed budget for the project and the contdbution requested from the City. o Instead of the original budget of $52,500, (with the City contdbuting $35,000 and Ptospeta conftibuting $17,500), we have reduced the total budget to 950,000. o We are now requesting that the City contribute $25,000 which Prospera will match with $25,000. The revised proposed budget is attached. At theJuly 14 Commission meeting, Prospera was encouraged to gain support for our proposal from the Bozeman Area Chamber of Commerce. We have met with the CEO of the Chamber and tepresentatives from the Chamber's Board of Directors to seek their support and participation rn the process. At this time, the Chamber has not yet responded to our request fot support of our proposal. It is impotant to note that we consider the Chambet to be a key stakeholder rn the development of the City's Economic Developmenr Plan and we plan to fully include them rn the identified process. \x/e look fotward to completing this important project for the city. Sincerely, August 6,2008 B ozeman City Commission P.O. Box 1230 Bozeman, MT 5977I Bob Hietala Chief Executive Officer Prospera Business Network Access the Opportanities Prospero Busi nessNefwork. com 10919 Prospera Proposal for Development of city of Bozeman's ED plan-Budget Staff cEo Program Director Research Assistant Marketing Coordinator TotalStaff Cost Expenses Travel Phone/Communication Room Rental Supplies Printing Contract research Advertisements Contract Facilitation Total Expenses Proiect Gost Staff time Expenses Total Sources of Fundinq Prospera City of Bozeman TotalFunding 6-Month Expense 18,720 7,280 8,320 4,680 39,000 11,000 39,000 11,000 50,000 25,000 25.000 50,000 204 300 750 500 750 7,500 500 500 ll Prosper/l BUsrNEsslrrrwonr 11020 A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN PAGE 0 OF 4 A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN JULY 14, 2008 SUBMITTED BY: BOB HIETALA CHIEF EXECUTIVE OFFICER PROSPERA BUSINESS NETWORK 222 EAST MAIN STREET, SUITE 102 BOZEMAN, MONTANA 59715 406.587.3113 11321 A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN PAGE 1 OF 4 A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN Project Background This project is proposed as part of the City of Bozeman’s planning process for updating the Bozeman 2020 Community Plan. Over the past few months, Prospera staff and the City of Bozeman Planning Department’s leadership have held a number of discussions regarding the need for the creation of a comprehensive, stand-alone Economic Development Plan for the City of Bozeman. The recent analysis of the 2020 Plan conducted by Clarion Associates recommended that the chapter on economic development be expanded to provide more detailed policy guidance. The recommendation went on to add that a separate, more comprehensive economic development plan was indicated in 2001 and is warranted today. The recent softening of the national economy and the potential for a local economic slowdown makes this an opportune time for the City of Bozeman to adopt a comprehensive Economic Development Plan. Project Description Prospera proposes to contract with the City of Bozeman to lead the development of the City of Bozeman’s Economic Development Plan. This would include conducting the economic data collection, facilitating the public, expert and business leader input processes, working with the City Planning Department staff on coordination and integration with other sections of the 2020 Plan and working with the City Commission on the finalization and adoption of the plan. Project Deliverables At the conclusion of the process, Prospera will provide the City with two documents: a comprehensive Economic Development Plan for the City of Bozeman and a corresponding Economic Development Chapter for the updated Bozeman 2020 Community Plan. Prospera’s Qualifications for the Project Prospera Business Network (formerly known as the Gallatin Development Corporation) has an extensive history of conducting economic research, developing economic plans and implementing economic development initiatives in Bozeman over the past 21 years. Some of the organization’s recent research projects and publications include manufacturing company surveys, technology company surveys, quarterly cost of living reports, business relocation resource guides and an annual comprehensive economic profile of the area. The organization has facilitated or participated in the creation of economic development plans in the area for the past 21 years. This proposed project is consistent with Prospera’s economic development mission and goal: to support the continued economic expansion of our area and the overall growth and diversification of the economy. 11422 A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN PAGE 2 OF 4 The organization has a strong relationship with the City of Bozeman in what can be described as a public-private partnership on economic development initiatives. Since its inception, GDC/Prospera has worked closely with the City on a variety of economic development projects, including business relocations. Prospera administers for the City a $200,000 job training grant to an aerospace company and also administers the City of Bozeman’s $1.6 million CDBG Revolving Loan Fund. In addition, Prospera has strong relationships with Bozeman’s business community, as evidenced by the 160 business members that provide financial support and the extensive professional development programs offered. The organization has numerous partners who support our economic development efforts, and with whom we regularly collaborate on programs and initiatives, including: the Bozeman Area Chamber of Commerce, Tech Ranch, the Downtown Bozeman Partnership, Montana State University (including MSU Tech Transfer & MSU Career Services), Montana Manufacturing and Extension Center (MMEC), TechLink, Bozeman Job Service, the Northern Rocky Mountain Resource Conservation and Development Area (RC&D), the Montana Department of Commerce and the U.S. Small Business Administration (SBA) Montana District Office. Project Timeframe The project will commence upon approval of this proposal by the City Commission and the execution of a contract or purchase of services agreement as necessary. The project is expected to take six months to complete. Given a project start date by July 1, 2008, Prospera would complete the project by December 31, 2008. Project Methodology The development of the economic development plan will be an inclusive process that will provide for broad-based community input into the City’s goals and strategies for supporting and creating economic growth and diversity. Our Proposed Process in the Development of the Plan: 1. Establish Advisory Committee for the Project Prospera will create an advisory committee for the project. This group would meet throughout the course of the project and provide input into the process. The advisory committee would be made up of business leaders, City Commissioners, city planning staff and leaders of economic development organizations. 2. Data Collection for the Economic Development Plan Prospera will utilize a combination of techniques to collect input for the economic development plan. These techniques will include a combination of focus group panels and one-on-one interviews with private citizens, business and community leaders, economic development experts, city planning staff, elected officials and other key stakeholders. An electronic and printed survey will be utilized to solicit broad-based input concerning economic development needs and priorities. Prospera 11523 A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN PAGE 3 OF 4 will research and review economic data to provide an in-depth look at the Bozeman economy. Prospera has access to an economic impact calculator tool that will be used to quantify potential economic impacts. Economic planning documents from other comparable cities will also be evaluated. 3. First Draft of Economic Development Plan Based on the information collected, Prospera will develop a first draft of the comprehensive City of Bozeman Economic Development Plan and submit it to the Planning Department for review and comment. 4. First Draft of Economic Development Plan Reviewed by City Planning Department 5. Economic Development Plan Revised Based on City Planning Department’s Input and Recommendations 6. Economic Development Plan Reviewed by City Commission 7. Economic Development Plan Revised Based on City Commission’s Input and Recommendations 8. Economic Development Chapter for Bozeman 2020 Community Plan (to be integrated with other chapters in the 2020 Plan) Written 9. Economic Development Plan and Economic Development Chapter of 2020 Plan Submitted to City Planning Department for Review and Comment 10. Economic Development Plan and the Economic Development Chapter of the 2020 Plan Revised Based on City Planning Department’s Input and Recommendations 11. Economic Development Plan and Economic Development Chapter of 2020 Plan Submitted to City Commission for Review and Comment 12. Economic Development Plan and the Economic Development Chapter of the 2020 Plan Finalized Based on City Commission’s Input and Recommendations 13. Finalized Economic Development Plan and Economic Development Chapter of 2020 Plan Submitted for Adoption by City Commission 11624 A PROPOSAL FOR THE DEVELOPMENT OF THE CITY OF BOZEMAN’S ECONOMIC DEVELOPMENT PLAN PAGE 4 OF 4 Issues which would likely be addressed in the Economic Development Plan The Economic Development Plan will be shaped by the data collected and the input received throughout the process. It is important to involve the many key stakeholders in the process to help create a broad-based consensus on the direction of the City’s economic development activities. The operating premise in the project is that there is a commitment to developing and maintaining a strong, diverse and sustainable economy in Bozeman. This economy will create high paying jobs for the citizens of Bozeman. Some topics that the plan could address include: 1. A Description or Profile of the City’s Economy 2. Coordination of Public-Private Economic Development Efforts 3. Infrastructure Support for Economic Development 4. Land Use Related to Economic Development 5. Downtown’s Importance to Bozeman’s Economic Vitality 6. Focus on Sectors: Technology, Manufacturing, Healthcare, Services, Retail, etc. 7. Economic Incentives and Direct Business Support 8. Business Expansion and Retention 9. Environmental Considerations 10. Workforce Development 11. Development of an Industrial Park 12. Integration of Economic Development policies with other policies in the 2020 Plan Proposed Project Funding The estimated cost for the entire project is $52,500. The City of Bozeman’s contribution would be $35,000 which could be provided through economic development revenues from the Development Impacts (Big Box) Fund. Prospera would match the City’s contribution to the total project cost at 50%, providing $17,500 through Prospera funding and in-kind expenses. 11725