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TO:THROUGH:FROM:

SUBJECT:

. ISSUE:

FOR COUNCIL MEETING OF:_ January 24, 2011AGENDA ITEM I 4.3 (e)

MAYOR AND CITY COUNCILLI A t : \ ~ R R I S , CITY MANAGER

HN H ~ ~ T E R I M DIRECTORBAN DEVELOPMENT DEPARTMENTDOWNTOWN ECONOMIC IMPROVEMENT DISTRICT (EID):ADMINISTRATOR SELECTION PROCESS

Shall the City Council approve the change from a Request For Proposal (RFPprocurement process) to a Special Procurement Process for the selection of an EIDadministrator?RECOMMENDATION:

Staff recommends Council approve changing the Request For Proposal (RFP)procurement process to a Special Procurement Process to select an EID administrator.BACKGROUND:Historically, an Economic Improvement District is created by the City at the request ofproperty and business owners who have determined there is an economic benefit tothem paying a tax for specific services within a per-determined boundary. Theseservices CQuid include business recruitment, marketing and promotion, beautification,security and maintenance.On October 25, 2010, City Council approved an extension of the Salem DowntownEconomic Improvement District and proposed a timeline for the solicitation andselection of an Administrator prior to initiating the public hearing and remonstranceprocess. The report also outlined steps for this process which included theestablishment of a task force, solicitation materials, and process for the public hearingsrelating to the remonstrance period and proposed assessments.In order to provide a cohesive and supportable process for the selection of an EIDAdministrator, staff recommends a Special Procurement Process under the City ofSalem Contracting Rules, PCR 4.3. which allows for an alternative contractingprocedure that will be an alternative to the competitive procurement process.

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FACTS AND FINDINGS:Staff has solicited input from property owners and businesses, in addition to invitingrepresentatives from the Chamber of Commerce, CANDO Neighborhood Association,Travel Salem, Downtown Advisory Board, Salem Downtown Partnership, and GoDowntown Salem to a stakeholder meeting. Based on the information shared at themeeting and subsequent communication with downtown stakeholders, staff believes itwould be very difficult for the City to identify and implement an RFP process that wouldmeet the expectations of a majority of the downtown property owners and businessowners. Therefore, staff recommends that Council approve the change from an RFPprocess to a Special Procurement Process for selecting an EID Administrator once anorganization steps forward and demonstrates they meet the requirements set forth inSRC Chapter 44 (Attachment A), have the support of a majority of the property ownersand business owners within the EID district boundaries, and meet the criteria outlinedfor the Special Procurement Process.If this process is approved by the City Council, staff will prepare a submission guidancedocument providing the specific criteria needed, the process for submitting a proposal,and will provide that document to interested parties. In summary, proposals from anorganization interested in serving as the EID Administrator should provide the Councilwith specific information on their proposed activities, budget, and performancemeasures. They will also need to provide sufficient information demonstrating theircompliance with SRC Chapter 44 which includes:

That EID funds will be spent on services and programs identified in ORS221.112(2) and SRC 44.005, 44.035 (a) and (b) including:(1) Planning or management of development or improvement activities;(2) The conduct of activities in support of business recruitment and development;(3) The marketing and promotion of businesses, public events and other activitiesoccurring in the Salem Downtown Economic Improvement District;(4) The provision of decorations, flowers, trash cans, planters, benches, banners,signage, or other assets that generally benefit the Salem DowntownEconomic Improvement District;(5) Cleaning and maintaining the public spaces within the Salem DowntownEconomic Improvement District;(6) Provision of safety and security in the public spaces within the SalemDowntown Economic Improvement District; and(7) Any other economic improvement activity that specially benefits the Salem

Downtown Economic Improvement District. That the third party Administrator have a board with no less than fifty percent ofthe voting members on the board being real property owners within the SalemDowntown Economic Improvement District.

In addition to providing City Council with sufficient information that provides assurancethat any proposer meets the legal requirements of ORS Chapter 221 and SRC Chapter

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44, staff suggest the Special Procurement Process include the following types ofinformation that would benefit the Council in making a decision regarding the future EIDAdministrator: Written evidence of a majority support from the District's property owners and a

majority of the business owners for their organization to serve as the EIDAdministrator; Majority support from the property owners and a majority of the business ownersfor their proposed scope of services to be provided; Majority support from the property owners and a majority of the business ownersfor their proposed expenditure of funds; A copy of the organizations proposed, detailed budget; Qualifications of the organization to administer EID funds, including qualifications

of staff; and The interest the organization may have in utilizing the ground floor space locatedon Ferry Street, if that space remains available.

To have an EID effective July 1, 2011, an organization would need to submit a requestfor Council consideration no later than April 1, 2011. If for some reason an EIDAdministrator is not selected prior to the April 1, 2011, deadline for funding effective July1, 2011, the City Council would need to consider an ordinance amendment to changethe date of the levy.Staff will make themselves available to answer any questions or provide support to thedowntown stakeholder organizations, property owners, and businesses who areinterested in submitting a proposal to the Council to provide Salem DowntownEconomic Improvement District Administrator/Service Provider services.Next Steps:If a proposer steps forward, staff will prepare the Special Procurement Process criteriaand submission requirements.Attachment A: SRC Chapter 44

Prepared by: Sheri Wahrgren, Downtown Revitalization ManagerG:IURBANDEvv\DMINISTRATIONIFinal Council Staff Reports\2011lJan 241EID StrategylDowntown Economic ImprovementDistrictvers3_7.doc

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