REQUEST FOR QUALIFICATIONS (RFQ)

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1 REQUEST FOR QUALIFICATIONS (RFQ) Regional Economic & Fiscal Impact Analyses and Economic Strategic & Implementation Plan for San Luis Obispo County DEADLINE: February 17, 2017 The Economic Vitality Corporation of San Luis Obispo County (EVC), in partnership with the County of San Luis Obispo and the cities of Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo, is issuing a Request for Qualifications (RFQ) to perform one or both of the following: 1. Economic & Fiscal Impact Analyses 2. Regional Economic Strategic & Implementation Plan The above projects will include in scope the incorporated and unincorporated communities of San Luis Obispo County, which are as follows: Incorporated 1. Arroyo Grande 2. Atascadero 3. Grover Beach 4. Morro Bay 5. Paso Robles 6. Pismo Beach 7. San Luis Obispo Unincorporated San Luis Obispo County 1. Nipomo 2. Avila Beach 3. Oceano 4. Los Osos 5. Cambria 6. Templeton 7. San Miguel 8. Santa Margarita Interested parties should submit responses of qualification to either one or both of the two project phases as outlined in the Project Overview section below. Interested parties should also provide any other information they believe would demonstrate their unique qualifications for this project. An evaluation committee will review submissions based on the points identified in the Qualifications Requirements section below. 1 of 6

2 ABOUT THE EVC The contracting entity for this work is the Economic Vitality Corporation (EVC), a nonprofit, economic development organization serving all of San Luis Obispo County and a public/private partnership supported by businesses and local government. As the leading voice of the countywide business community, the EVC has active involvement from senior leadership in every private industry sector and public jurisdiction within the County and benefits from partnerships with surrounding counties. The EVC mission is to stimulate the vitality of the County s economy, help generate jobs, increase investment in the community, and promote the growth of local businesses. ABOUT THE SAN LUIS OBISPO REGION San Luis Obispo County is a special place to live, work, and play; a number of attributes make it so: protected natural resources, a viable tourist and agricultural economy, and diverse and unique communities. Its economy has been historically strong with modest job growth and boasts one of the highest rates of sole proprietors throughout the State. The County is home to approximately 275,000 residents with the largest sector of state employees at California Polytechnic State University, the California Men s Colony, Atascadero State Hospital, the California Department of Transportation, the County, and each of the seven cities. Two of the top industries in the County are tourism and agriculture/viticulture. The region s unique quality of life, environmental amenities, sense of place, and community values enable businesses to attract and retain a talented, innovative, and creative workforce. While the county has these valuable attributes and assets, it also has a high cost of living: San Luis Obispo County is one of the least affordable areas in the nation when comparing median incomes to median home costs. As well, the County experiences limited critical resources and infrastructure, such as water, transportation, and workforce housing. A Coming Shift: Challenges Ahead For the last 30 years the single largest private sector employer in the County has been Pacific Gas and Electric Company (PG&E), which operates the last nuclear power plant on the West Coast the Diablo Canyon Power Plant (DCPP). The DCPP currently retains approximately 1,500 employees with an average income of $157,000 per year. DCPP employees live throughout the County, with over 200 residing in each of the cities of Arroyo Grande, Atascadero, and San Luis Obispo, and over 100 living in the City of Grover Beach, the community of Nipomo, the City of Paso Robles, and the community of San Miguel. The DCPP induces approximately 3,358 local jobs, over half of which are created by the direct and indirect impacts of purchases and payroll expenditures in the region, resulting in approximately a billion dollars in annual economic activity in the region. The DCPP pays approximately $22 million annually in property taxes, which is distributed to the local school districts, the County, the cities, and special districts within the County. In 2011, the DCPP spent approximately $21.8 million on local expenditures, and PG&E makes significant charitable donations each year to local nonprofits. 2 of 6

3 In June of 2016, PG&E announced the permanent closure of the DCPP and its two nuclear reactors in and 2025 followed by a plant decommissioning process that is anticipated to take a decade or more. Even without the impending halt of the DCPP s approximate billion in annual economic impacts to the region, the County is in need of a vision and plan for a broader, more comprehensive economic strategy, one that fosters an economy less reliant on one industry sector. PROJECT OVERVIEW In response to the future closure of the DCPP and the resulting loss of revenue and economic benefits to the County, the EVC is seeking a consulting team that can address one or both phases of the following project: Phase 1 Economic & Fiscal Impact Analyses: Determine the Economic and Fiscal impacts of the DCPP closure in the context of overall trends in the regional economy for the County of San Luis Obispo, with breakout analyses for the following incorporated jurisdictions: 1) Arroyo Grande, 2) Atascadero, 3) Grover Beach, 4) Morro Bay, 5) Paso Robles, 6) Pismo Beach, and 7) San Luis Obispo, as well as for the following unincorporated communities within the County: 1) Nipomo, 2) Avila Beach, 3) Oceano, 4) Los Osos, 5) Cambria, 6) Templeton, 7) San Miguel, and 8) Santa Margarita. Economic Impact Analysis (EIA): The purpose of this portion of the project is to examine the resultant economic impacts of the DCPP closure on the County and each of the seven cities. Consistent with most standard economic studies, direct impacts such as employment numbers and salaries, plant expenditures, power generation sales, and taxes paid will be analyzed and then applied to an input/output model to estimate the indirect and induced effects on the economy. This study will quantify DCPP s economic impacts and how those impacts relate to the overall gross product of the region through detailed quantitative and qualitative analysis. Fiscal Impact Analysis (FIA): Using the EIA, the purpose of this portion of the project is to develop a fiscal forecast for the County, each of the Cities, and the unincorporated communities that includes direct, indirect, and induced impacts to the major revenue and expense categories due to the closure of the DCPP. The FIA will quantify separately the impacts to each of the County s eight jurisdictions in terms of any projected loss of direct, indirect, or induced revenues and/or reduced or increased expenditures as a result of the plant s closure. The FIA also will provide any other relevant items of information, criteria, or recommendations as per the determination of the selected firm in consultation with the EVC. The deliverable of Phase 1 will be a detailed Economic Development Background Report that provides the statistical and factual underpinning for Phase 2 of the project: an Economic Strategic and Implementation Plan. Supplemental materials including an executive summary, PowerPoint presentation, and other visual representations for public discussion at the appropriate time will be required. 3 of 6

4 Phase 2 Economic Strategic and Implementation Plan: Unify the region under a collective vision and guide regional leaders in the development of a coordinated economic strategy that fosters strong local partnerships. The completed strategic plan will provide a road map for economic growth throughout the region, focusing closely on opportunities for partnerships and collaborations and emphasizing specific action items at every jurisdictional level. The plan will outline economic strategies that can be implemented by the County, each of the seven cities, and the unincorporated communities throughout the region. Additionally, the plan will make explicit how to leverage state and federal resources and partnerships in response to the DCPP closure to advance economic goals set forth in the strategic plan. The completed plan will contain specific economic development goals, strategies, and implementation measures for the larger collaborative region as well as for each of the communities throughout the County. It will also include timelines, anticipated costs, and funding sources for all strategic action items. The implementation plan will guide the region s economic development efforts to facilitate long term sustainable economic growth. Qualification Requirements for Phase 1 1. Describe your firm s previous experience engaging in economic and fiscal analysis as well as economic forecasting. Please be specific and provide examples of previously completed projects. 1. Describe and document your firm s success in developing economic analyses for regional economies. 2. Describe and document your firm s experience presenting economic analysis reports in both written and visual formats. Provide examples of previously written content analysis and graphical displays (infographics) that visually present the analysis. 3. List the names, biographies, and qualifications of each of the team members that would be assigned to this project. Qualification Requirements for Phase 2 1. Describe your firm s previous experience engaging in strategic economic development planning. Please be specific and provide examples of previously completed projects. 2. Describe your firm s success in developing economic development strategic plans for regional economies. 3. Describe your success in building coalitions, strengthening partnerships, and unifying local jurisdictions and communities toward a common economic goal. 4 of 6

5 Please describe your methodology in detail to convey effectively your level of experience. 4. Describe your firm s success in developing economic recovery and/or mitigation plans for the loss or closure of a nuclear power plant, military base, or large employer. Please provide specific examples that effectively convey your level of experience with this type of work. 5. List the names, biographies, and qualifications of each of the team members that would be assigned to this project. Qualifications / Other 1. Describe any uniquely qualifying experiences of your firm not covered above. 2. Describe any salient issues or areas the community may have missed in its development of this RFQ that your firm believes should be considering as part of the community s development of Economic & Fiscal Impact Analyses and/or Regional Economic Strategic and Implementation Plans. Submission Requirements Interested parties should provide one electronic copy of their responses to info@sloevc.org no later than February 17, 2017, at 5:00 PM, Pacific Standard Time. Submissions should make clear if they are for Phase 1, Phase 2, or both. The submission must be divided into the following sections: Cover letter Qualification Requirements responses Three or more references from clients with similar projects. Provide contact names, with current telephone numbers and addresses. Upon submission review, an EVC Evaluation Committee will invite selected respondents to interview. Following an interview, selected respondents will receive a formal Request for Proposal (RFP) with the following tentative timeline for proposal submission and selection: 1. Request for Qualifications (RFQ) Issued January 20, Questions regarding RFQ due no later than February 3, RFQ Submittal due February 17, Request for Proposal (RFP) Issued March 27, RFP Submittals due April 17, Intent to Award for Phase 1 and/or Phase 2 May 2017 Note: The deadline on all dates is 5:00 PM, Pacific Standard Time 5 of 6

6 Questions/Additional Information Questions or requests for additional information should be directed to Michael Manchak, President & CEO, Economic Vitality Corporation at Questions/answers and addenda issued in response to queries for additional information will be provided to all solicited parties and posted on the EVC website, no later than February 5, Questions and requests for additional information regarding the RFQ are due in writing no later than February 3, EVC retains the right to withdraw this RFQ or choose not to award a contract. # # # 6 of 6

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