Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute Amendment No. 1 to the Consulting Services Agreement with the Alex Greenwood Group for Economic Development Strategy Implementation and Other Economic Development Consulting for a new total not to exceed $157,000
Staffreport
COUNCIL PRIORITY
• Quality of Life
• Economic Development
SUMMARY
The First Amendment to the Consulting Services Agreement with the Alex Greenwood Group will enable the implementation of the 2024 Economic Development Strategy and the City’s Economic Development Workplan during Fiscal Years 2026 and 2027.
RECOMMENDATIONS
Staff recommends that the City Council approve and authorize the City Manager to execute a first amendment to the professional services agreement with the Alex Greenwood Group for technical assistance and staff augmentation for the ongoing implementation of critical actions/strategies in the Economic Development Strategy for a not-to-exceed amount of $157,000. The proposed amendment will fund the Alex Greenwood Group’s ongoing services through the next two fiscal years ending on June 30, 2027.
BACKGROUND
Economic Development is a top City Council Priority. In 2024, the City Council adopted the San Leandro Economic Development Strategy (“Strategy”), which will guide economic development priorities and activities over the next ten years. The Strategy focuses on initiatives to grow San Leandro’s economy, expand the City’s regional image and identity, inspire new investment and attract high-quality jobs, and improve the quality of life in San Leandro.
The City’s Economic Development Workplan outlines specific projects and programs during Fiscal Years 2026 and 2027 to implement the Economic Development Strategy. Consulting assistance is required to successfully implement the workplan in a high quality and timely manner.
The Strategy is currently in its implementation phase. Four key action steps will play a critical role in the early stages of implementation: the Innovation Action Plan, Retail Action Plan, City Brand Assessment and Marketing Strategy, and Workforce Partnership Strategy. The Innovation Action Plan and Retail Action Plan are nearing completion and will provide City staff with information on how to attract desirable businesses in both emerging industries and retail sectors.
The next steps for implementation during Fiscal Years 2026 and 2027 include development of the Workforce Partnership Strategy, support for the City Brand Assessment and Marketing Strategy, and implementing the recommendations of the Innovation and Retail Action Plans.
This work exceeds the capacity of the City’s team. Staff augmentation is recommended to ensure that deliverables are met and the goals are implemented as specified in the work plan. The Alex Greenwood Group (“Consultant”) has been pivotal in the development of the Strategy, as well as having authored the Innovation Action Strategy. Therefore, Staff recommends continuing to engage the services of the Consultant for effective and timely implementation of the Strategy. The Alex Greenwood Group provides specialized and cost-effective support for implementation of the Economic Development Workplan.
Analysis
The successful implementation of the Strategy is contingent upon the timely implementation of its goals. The scope of work includes the following:
• Task 1: Implementation of Innovation Action Strategy - Outreach and recruitment of specific businesses based on analysis of target industries; negotiations with PG&E, Bay Area Air Quality Management District and other regional organizations with an impact on San Leandro’s industrial sector; support local business retention and attract support, including business visits and support/analysis to resolve retention challenges; Industrial and market analysis, as needed.
• Task 2: Branding and Marketing Activities - Develop an integrated Economic Development Marketing Plan; support City planning efforts for a City Brand Assessment.
• Task 3: Implementation of the Retail Action Plan - Analysis, advising, and staff support on recruitment of specific retail tenants, analysis of auto retail opportunities, continued work with shopping centers, advisory on Downtown improvements, and other related initiatives.
• Task 4: Review of Updates to the City’s Zoning Code, Permit Process and other land use and administrative procedures that impact business attraction
• Task 5: Development and implementation of the Workforce Partnership Strategy
• Task 6: Implementation-related real estate advising, development planning, analysis, technical support, grant applications and/or other support, as requested.
The Consultant will also provide ongoing support for one-on-one assistance for businesses to help on topics of business needs; promote small businesses and encourage residents to shop locally via social media, promotional campaigns, loyalty programs, and events; develop grant opportunities for businesses; propose City service delivery improvements; offer performance metrics technical support and analysis.
Applicable General Plan Policies
• Economic Development Policy ED-1.4: Emerging Industries. Promote and support the growth of new and emerging industries, especially industries requiring work space that is consistent with San Leandro’s building stock and industries with the potential to provide quality jobs at all skill levels and wage levels for San Leandro residents.
• Economic Development Policy ED-1.9: Marketing and Branding. Promote positive media coverage, branding, and marketing campaigns that build civic pride and create a favorable image of San Leandro on a regional, national, and global scale.
• Economic Development Policy ED-2.1: Business-Friendly City. Maintain a collaborative and supportive relationship between the City and the private sector that emphasizes the ease of doing business in San Leandro.
• Economic Development Policy ED-2.4: Business Assistance. Maintain programs that provide a supportive environment for local businesses, including expedited permitting, incentives for renovating and improving buildings, site location assistance, land assembly, loans, and other business development incentives.
• Economic Development Policy ED-4.1: Retail Diversity. Encourage a diverse range of commercial uses, offering goods and services that fully meet the needs of San Leandro residents and businesses.
Legal Analysis
The Consultant has agreed to the terms of the contract.
Financial Impacts
The original Agreement with Alex Greenwood Group was for $67,000 and executed June 26,2024. Sufficient funds are included in the Fiscal Year 2024-2025 General Fund budget for consulting services in the following amount to fund the Amendment No. 1 request:
• Economic Development Consulting, Account 010-41-003-5120: $90,000
The amended Agreement will not impact fund balance because there are funds available in the FY2024-2025 adopted budget.
ATTACHMENTS
A: Resolution to Approve and Authorize the City Manager to Execute Amendment No. 1 to Consulting Services Agreement with the Alex Greenwood Group for Economic Development Strategy Implementation and Other Consulting for a new total not to exceed $157,000
B: Original CSA Scope of Work & Compensation Schedule
C. Amended CSA Scope of Work & Compensation Schedule
PREPARED BY: Lars Halle, Economic Development Specialist