DEPARTMENT: Economic Development Department
DEPARTMENT HEAD: Alejandra Lopez
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
An Ordinance approving professional service agreements with Steve R. Nivin Ph. D, LLC (Dr. Nivin) and TXP, Inc./Momentum Advisory Services, LLC, (TXP) to utilize economic development consultant services.
SUMMARY:
This ordinance authorizes the City Manager or his designee to execute contracts with Steve R. Nivin Ph. D, LLC and TXP, Inc./Momentum Advisory Services, LLC. to conduct on-call economic impact analysis services to inform strategy and policy decisions, and to quantify the impact of economic development projects. The term of the contracts is for three years with two one-year renewal options in an annual amount not to exceed $96,000 for both agreements or $480,000 over the course of the contracts’ terms.
BACKGROUND INFORMATION:
The City of San Antonio periodically requires economic analyses to be performed to determine the potential impact of economic development projects, and to conduct cost-benefit analyses for various initiatives. These analyses inform staff recommendations and City Council policies and are vital in ensuring the most efficient utilization of City resources. The City is also responsible for submitting economic and financial documents to various local, state, and federal agencies. Such documents include, but are not limited to, the City’s Annual Financial Report, the Budget Transmittal Letter, and City Bond documents. These reports often include economic sections that require research and analysis on the state of the economy in San Antonio. Staff has historically utilized internal resources to compile and update pertinent sections.
The City previously requested outside consultants to perform economic impact analyses on a year-to-year or one-time service basis. This requires annual City Council approval and prevents long-term strategic planning with any one consultant.
Additionally, due to the COVID-19 pandemic’s effects on the economy, accurate economic forecasts and models will be important in guiding future recovery plans implemented by the City. Any economic recovery policies and programs will require detailed data that City Council can depend on to remain informed. Entering into multi-year agreements with consultants will provide staff the flexibility to outsource these functions to those with more expertise.
The Finance Department, on behalf of the Economic Development Department, released a Request for Proposals (RFP) on August 6, 2020 to select a consultant to perform on-call economic impact analysis services. The RFP was advertised in the San Antonio Express-News, TVSA channel, the City’s Bidding & Contracting Opportunities website, the San Antonio e-Procurement System (SAEPS) and an email notification was released to a list of potential Respondents. Responses were due on September 23, 2020. A total of three (3) firms responded to the RFP and were deemed eligible for review. On October 15, 2020, the proposals were reviewed by the evaluation committee which included representatives from the Economic Development Department, the Neighborhood and Housing Services Department, and the Office of Management and Budget. Proposals were evaluated and scored on Experience, Background, and Qualifications (35 points); Proposed Plan (30 points); Price (10 points); Small Business Economic Development Advocacy Program (10 points); Local Preference Program (10 points); and, Veteran-Owned Small Business Preference Program (5 points).
ISSUE:
It is the City’s intent to enter into professional consultant agreements with Dr. Nivin and with TXP. These firms have proven and trusted track records of delivering various economic services to firms and to other municipalities in Texas and have different areas of specialty commonly needed by the City. As part of the agreements, services to be performed may include, but are not limited to, the following:
• Evaluate impact of economic development projects;
• Create and review cost-benefit analyses and economic impact analyses as requested by the Economic Development Department and other City departments;
• Evaluate economic sections of the City Annual Financial Report, the Budget Transmittal Letter, and City Bond documents;
• Conduct Tax Increment Reinvestment Zone feasibility studies;
• Evaluate impact of events as requested by the Convention and Visitors Bureau, the Convention and Sports Facilities Department, and other City departments;
• Conduct other similar and related tasks as needed including, but not limited to, data analyses, production of reports, GIS analyses, etc.; and
• Brief City Council, City staff, and other City-sponsored entities on research and analyses completed.
This contract will be awarded in compliance with the SBEDA Program. Dr. Nivin received five (5) evaluation preference points under the SBEDA Prime Contract Program, as the firm is certified by the South Central Texas Regional Certification Agency as Small Business Enterprises and is headquartered within the San Antonio Metropolitan Statistical Area.
The Local Preference Program was applied in the evaluation of responses received for this contract. Two of the firms that applied met the Local Preference Program criteria and were therefore eligible for points.
The Veteran-Owned Small Business Preference Program was applied in the evaluation of responses received for this contract. However, none of the firms that applied were Veteran-Owned Small Businesses.
ALTERNATIVES:
City Council could choose not to approve the ordinance and agreements with both Steve R. Nivin Ph. D, LLC and TXP, Inc./Momentum Advisory Services, LLC. However, this could impede the City’s ability to secure accurate and reliable economic analyses for future economic development projects and fiscal initiatives.
FISCAL IMPACT:
This ordinance authorizes two contracts with Steve R. Nivin Ph. D, LLC and TXP, Inc./Momentum Advisory Services, LLC.to conduct on-call economic impact analysis services to inform strategy and policy decisions, and to quantify the impact of economic development projects. The term of the contracts is for three years with two one-year renewal options in an annual amount not to exceed $96,000 or $480,000 over the course of the contracts’ terms.
Funds for these contracts are available in the FY 2021 Adopted General Fund Budget. All expenditures will be in accordance with the Department’s adopted budget approved by City Council. Funding for the subsequent years of the contract is subject to City Council approval of the annual budget.
RECOMMENDATION:
Staff recommends approval of an Ordinance to execute contracts with both Steve R. Nivin Ph. D, LLC and TXP, Inc./Momentum Advisory Services, LLC to utilize their services as an Economic Development Consultant.
This contract is procured by means of Request for Proposals and the Contracts Disclosure Forms are attached.