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April 15, 2025
ITEM TITLE
Agreements: Approve Agreements with Hinderliter de Llamas & Associates , and HR&A Advisors, Inc. , The Natelson Dale Group, Inc. , and Willdan Financial Services for On -Call Economic Development Consultant Services
Report Number: 25-0089
Location: Citywide
Department: Economic Development
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Approve agreements with Hinderliter de Llamas & Associates; HR&A Advisors, Inc.; The Natelson Dale Group, Inc. and Willdan Financial Services for On-Call Economic Development Consultant Services.
SUMMARY
In August 2024, the City released a competitive solicitation through the Request for Proposals (RFP) process to identify partners to assist the City in developing an Economic Development Strategic Plan, as well as to provide on-call economic development services to support staff in conducting economic development work.
On February 4, 2025, the City Council approved an agreement with HR&A Advisors, Inc. to conduct the economic development strategic plan work.
This item seeks City Council approval for the ad dition of on -call economic development consultants to support specific initiatives, such as Bayfront support work and outdoor dining programs. Staff recommends the approval of agreements with Hinderliter de Llamas & Associates, HR&A Advisors, Inc., The Natelson Dale Group, Inc., and Willdan Financial Services to provide on-call economic development consultant services.
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ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment.
Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
In August 2024, the City released a competitive solicitation through the Request for Proposals (RFP) process to identify partners to assist the City in developing an Economic Development Strategic Plan, as well as to provide on-call economic development services to support staff in conducting economic development work.
As a result of the solicitation, the City received nine (9) proposals, eight (8) of which were to assist the City in creating an Economic Development Strategic Plan and provide on-call services, and one (1) which was to solely support the City with Economic Development on-call services.
On February 4, 2025, the City Council approved an agreement with HR&A Advisors, Inc. to lead the development of the economic development strategic plan. This agenda item seeks City Council approval for the addition of on -call economic development consultants to support specific in itiatives, such as Bayfront support work and outdoor dining programs.
A selection committee, consisting of staff from the City Manager’s Office, the Office of Economic Development, and the Development Services Department, reviewed the proposals for on -call economic development services. The committee was supported by the Finance Department (Purchasing & Contracting). After evaluating the proposals based on specific qualifications for on -call economic development work, the committee ranked the proposals and determined that Hinderliter de Llamas & Associates, HR&A Advisors, Inc., The Natelson Dale Group, Inc., and Willdan Financial Services were the most qualified to provide these services. This conclusion was based on the firms' personnel composition, range of capabilities, and direct relevant experience of each firm.
Staff recommends the approval of agreements with Hinderliter de Llamas & Associates, HR&A Advisors, Inc., The Natelson Dale Group, Inc., and Willdan Financial Services to provide on -call economi c development consultant services.
Additional economic consultant services the City expects to receive from these on-call consultants include the following:
1. Economic, market and financial analysis of real estate transactions.
2. Small business support programs.
3. Targeted business expansion, attraction and retention efforts including leakage analysis.
4. Workforce development and talent attraction initiatives.
5. Development regulation analysis and modification including permit streamlining
6. Outdoor dining programs, including curb and sidewalk cafés.
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7. Hospitality/tourism marketing and support for tourism industry development Each of the agreements with Hinderliter de Llamas & Associates, HR&A Advisors, Inc., The Natelson Dale Group, Inc., and Willdan Financial Services to provide on-call economic development consultant services is proposed for a three-year term with a not-to-exceed amount of $500,000. Each agreement is proposed to allow for two (2) additional one (1) year extension s with a not -to-exceed amount o f $166,000 for each additional one (1) year term with each consultant. Each contract has a not-to-exceed amount of $832,000, assuming all optional extensions are exercised.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Counci l members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property -related financial conflict of interest under Califo rnia Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current-year fiscal impact as a result of approving this item. The funding for On-Call Economic Development Consultant Services is included in the fiscal year 2024-25 budget. Approximately $128,000 has been earmarked for these expenditures. Any remaining f unds not used in the current fiscal year will be carried forward to fiscal year 2025-26.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact associated with this approval. Any costs related to the execution of these agreements will be covered by funds carried forward from the 2024 -25 fiscal year or will be incorporated into the budget process for subsequent years.
ATTACHMENTS
1. Agreement with Hinderliter de Llamas & Associates
2. Agreement with HR&A Advisors, Inc.
3. The Natelson Dale Group, Inc.
4. Agreement with Willdan Financial Services
Staff Contact: Kevin Pointer, Principal Economic Development Specialist Tiffany Allen, Assistant City Manager