DATE: June 21, 2022
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Lisa Flores, Planning & Community Development Administrator By: Diana Loli, Business License Officer
Janessa Kalanjian, Senior Administrative Assistant
SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH AVENU INSIGHTS &
ANALYTICS TO UPDATE THE BUSINESS LICENSE SECTION OF THE
ARCADIA MUNICIPAL CODE ARTICLE VI, BUSINESSES,
PROFESSIONS, AND TRADE AND OCCUPATIONS, IN THE AMOUNT
OF $39,500
Recommendation: Approve
SUMMARY
The Development Services Department is requesting authorization to execute a Professional Services Agreement (“PSA”) with Avenu Insights & Analytics in the amount of $39,500 to u pdate the Business License section of the Arcadia Municipal Code to modernize and improve the City’s business processes. It is recommended that the City Council authorize and direct the City Manager to execute the A greement in the amount of $39,500.
BACKGROUND
Article VI of the Arcadia Municipal Code, entitled “Businesses, Professions, Trades, and Occupations,” (i.e. “The Business License Code”) , is used to regulate business operations and processes, and to levy and collect business license taxes. Over the years, individual sections of the Business License Code have been updated to keep pace with State requirements or related City Code amendments , but there has never been a comprehensive update of the entire Code. As a result, this portion of the Code still contains antiquated language and definitions as well as outdated processes that are no longer applicable. As a continuation of the City’s efforts to be business friendly, it was determined that a comprehensive update was needed.
Update the Business License Code
June 21, 2022
The update to the Business License Code will greatly assist new potential business owners, existing business owners, residents, and the Business License Division in providing efficient and workable processes to maximize revenues and ensure a user - friendly system.
A Request for Proposals (“RFP”) was issued for the project on October 18, 2021. The City received two proposals , from HdL Companies and Avenu Insights & Analytics .
However, the review of the proposals was placed on hold for a period of months due to staff turnover in the Business License Division. Once the original proposals were evaluated, it became clear that neither of the submitted proposals addressed the scope of work outlined in the RFP. Both of the proposals focused primarily on how to modernize the taxes and fees rather than on the regulatio ns within the Code. As a result, the two firms were asked to resubmit revised proposals. Both firms submitted their revised proposals by April 29, 2022.
DISCUSSION
The revised proposals were reviewed by staff from the Development Services Department. Of the two firms, Avenu Insights & Analytics is the most qualified firm to complete the project . Avenu Insights & Analytics provided a more thorough proposal that included a project timeline and detailed cost proposal (not to exceed $39,500) as well as a thoughtful description of how they would go about researching and identifying ways to update the existing Code. After a follow up meeting, it was determined that they have the experience and capabilities necessary to achieve the goal of creating a more up-to-date and business friendly code, and to identify opportunities to streamline current business license administration processes.
Conversely, HdL Companies’ proposal still focused on updating tax rates and other tax - based components of the C ode, rather than a comprehensive update of the code language, which was explicitly addressed as a primary goal o n the RFP. Additionally, HdL Companies did not provide a clear cost proposal to complete the project ; thus, it is challenging to compare their proposal. Instead, they only provided their hourly rates with an estimated timeframe to complete the project.
Avenu Insights & Analytics has provided consultation services and ordinance updates to jurisdictions such as the Cities of Bellflower, San Bruno, and San Francisco. As part of this scope of work, Avenu Insights & Analytics will conduct a thorough review of the entire Code, update relevant language to make it easier to understand and administer, streamline the City’s administrative process for business license review, and make the Code more business friendly and easier to interpret and administer.
Update the Business License Code
June 21, 2022
ENVIRONMENTAL ANALYSIS
Approval of the agreement and work on the Business License Code are administrative actions and would not have an impact on the environment. Therefore, this action is not considered a project per the California Environmental Quality Act (CEQA).
FISCAL IMPACT
A budget of $40,000 was approved in the Fiscal Year 2021-22 Budget for this project.
This funding is adequate to cover the cost of the proposed Agreement at a price not -to- exceed $39.500 and no additional funding is being requested.
RECOMMENDATION
It is recommended that the City Council authorize and direct the City Manager to execute a Professional Services Agreement with Avenu I nsights & A nalytics to update Arcadia Municipal Code A rticle VI, Businesses, Professions, and T rade and Occupations, in the amount of $39,500.
Attachment No. 1: Professional Services Agreement with Avenu Insights & Analytics