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Home My WebLink About2013-03-12; City Council; 21161; Authorization Proposal Recruitment ConsultantCITY OF CARLSBAD - AGENDA BILL 14 AB# 21,161 AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSAL FOR A HIGHER EDUCATION RECRUITMENT CONSULTANT DEPT. DIRECTOR^%^ MTG. 03-12-13 AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSAL FOR A HIGHER EDUCATION RECRUITMENT CONSULTANT CITY ATTORNEY iJf DEPT. CED AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSAL FOR A HIGHER EDUCATION RECRUITMENT CONSULTANT CITY MANAGER /{fc^ RECOMMENDED ACTION: Direct staff to prepare and issue a Request for Proposal (RFP) for professional services to develop an analysis and implementation plan forthe recruitment ofa higher education institute or research facility to Carisbad. ITEM EXPLANATION: One ofthe Council's strategic goals forthe Fiscal Year 2012-13 was to create worid class educational opportunities in Carisbad. To further that goal, staff from the Community & Economic Development, Finance, Library 8i Cultural Arts, Property and Environmental Management, and Police departments have met and researched the feasibility of attracting a higher education institution to Carisbad. Staff conducted the following work to date: • Researched models of higher education recruitment in Arizona and New York City • Identified the larger Farmers Insurance building as a potential site for the institution via a long term lease agreement • Gathered studies on the community benefits of higher education institutions and higher education gaps in the San Diego region • Reached out to the education community including primary, secondary and higher education institutions throughout the region Approximately two-thirds of respondents to the 2013 Carlsbad Business Survey indicated that their businesses would benefit from a higher education institution in the city. Staff analysis thus far indicates that attracting a higher education institution to Carlsbad is possible and would generally be supported by the community at large. In order to achieve the outcomes Identified bythe Council, more technical and in-depth expertise is necessary. Current city staff does not have the expertise or experience In higher education analysis to complete implementation ofthis goal. The following steps must be completed to successfully bring a world-renowned higher education institution or research facility to Carlsbad. • Develop local & regional academic profiles • Identify local industry needs • Potential partner identification • Strategy development • Implementation plan development DEPARTMENT CONTACT: Kathy Dodson, 760-602-2744, kathv.dodsonPcarisbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED • CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER-SEE MINUTES • AMENDED • Council directed staff to proceed with the RFP See Minutes for details. Page 2 Since this project is a significant endeavor crossing academic and industry needs, a consultant with experience in higher education and economic development is needed to assist the city in reaching Its' goal. As such, staff is recommending the preparation and issuance of a Request for Proposal (RFP) for professional services. The RFP would be prepared and issued within the next 30 days, with proposals due back In the month of April. Staff will evaluate the proposals and return to the City Council with a recommendation on the preferred contractor and the award ofthe contract. FISCAL IMPACT: Based upon discussions with potential consultants, and given the level of research, site review and outreach required to complete the analysis and project design, the total anticipated budget for the RFP would be approximately $100,000. There are few consultants with the expertise necessary to complete a project ofthis complexity and the know-how to recruit an institution that Is globally renowned. Since the project aims to fulfill one ofthe City Council's strategic goals, staff requests that the funding for this project come from the City Council Contingency fund. Economic development staff would manage the RFP process using the City's best value selection process. Staff will return to city council after the RFP process to request contract authority and authorization authority for the funding. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change In the environment, and therefore does not require environmental review. EXHIBITS: 1. Models and Investments for Higher Education Summary 2. Benefits of a Higher Education Institution Summary 9^ EXHIBIT 1 Models & Investments for Higher Education Variety of city sites to be made available through a ground lease of up to 99 years for a nominal fee; for 2 of the 3 sites, an end of term purchase option was also available Capital contribution of up to $100 million funded on a reimbursement basis for approved project expenses out lined in the RFP. Proposals were preferred based on the minimum subsidy required. Off-site improvements related to infrastructure in order to reach full build on the proposed sites Staff resources o Publicity and public relations resources throughout the project process o Staff liaison to assist the institution capitalize on available benefits and incentives o Staff help to outreach to potential private and public donors (though financing was responsibility ofthe Institution's staff) the Lease a site of 20 acres of City land within a 100-acre industrial park at a rate of $l.year for 30 years; 2 additional 10-year rolling options were also made available Reserve an additional 10 acres adjacent to the site for future lease by the institution for expansion needs Promised partnering with the library district to provide a functional and operational library Exploration ofa special improvement district as a possible funding source Staff resources o Staff person as a resource for planning and development with expedited review ofthe project through the city's development process, o Staff to assist with community, stakeholder and business coordination • Space in the city's Center for Higher Education that will house 3 Higher Education Institutions (Albright College, Westminster College); Albright is initially privately leasing space until the city facility is ready • Coordination of marketing and public relations efforts and other support as city resources allow CARLSBAD EXHIBIT 2 c: I T Y or CARLSBAD Why Attract a Higher Education Institution? "But even for these 'global' universities, the economic impact of their activities is skewed toward their local communities."^ A Higher Education Institution (HEI) brings in outside resources to the local community • Human Capital: Highly educated faculty and students represent an influx of knowledge and talent • Financial resources: HEIs bring in money (often out-of-state) in the form of grants, federal aid, and private funding that then gets spent within the local economy. • Business: Companies will choose to locate close to an HEI, especially when the focus of the institution complements their work • Visitors: HEIs attract visitors regularly for events such as graduations and conferences who will invest in the local economy during their stay HEIs become economic generators of demand in the local economy • Demand for housing: Students and faculty will look for housing in the local market • Demand for goods and services: Business is generated to support the needs ofthe institution's population (e.g.- retail, grocery, restaurants, dry cleaners, etc.) • Employment demand: The HEI creates new direct jobs and produces new jobs for the local community (e.g.- construction jobs, maintenance and supply, goods and services) Based on 2006 figures, ofthe approximately $4.5 billion received by Stii:!:"' ?, about $621 million was directly spent in 5 '^ - - , the city of its main campus. Of the money spent in the county almost half (46.5%) was spent in Palo Alto. Connections with the business community create a more robust & prosperous economy • Technology transfer: Innovative outputs (e.g.- licenses and patents) by the institution are sold commercially, usually to businesses in the immediate vicinity of the HEI • HEI-Business connections: Faculty and students will often work as consultants and/or collaborators will local businesses to provide industry skills and expertise. • Public forum: HEIs provide the space to create a continuing dialogue between the research within the institution and its application to business and society. This space often produces the greatest benefit to the local economy.^ ^ Richard K. Lester. "Universities, Innovation, and the Competitiveness of Local Economies." Local Innovation Systems Project. 13 Dec 2005. Massachusetts Institute of Technology. 18 Sep 2012 <http://web.mit.edu/lis/papers/LIS05-010.pdf>. ^ Lester 25. STABILIZER: HEIs are pillars to a local community that help ensure long-term economic prosperity • Adaptation: The knowledge and talent of an HEI can help the local business community stay relevant and adaptive to changing times, helping to contextualize outside ideas to the local market.^ • Retention: Students don't have to move when an HEI is in their community and graduates tend to stay and work locally after completing their studies Stanford at a Glance (based on 2006figures^ Summary of Impact to Palo Alto: Description Amount (in Milliions) Local Spending by Stanford Employees $184 Direct Purchases of Goods and Services $258 Construction & Capital $129 Visitor and Student Spending $87 Property Tax from Stanford Lands $2 Sales Tax Generated $7 Utility Users Tax and Purchases by Stanford $48 Research Park & Stanford Shopping Center Transient Occupancy Tax Paid by Hotels $2 Total $717 Total in County $1,541 Percent of County Total Spent In Palo Alto 46.5% UCSan Diego Highlights (based on FY2006-7f Nearly one-third of UCSD alumni currently reside in San Diego County. The impact of spending by UC San Diego in the City of San Diego was $2,275 billion in total spending, 20,790 jobs, and $1,228 billion in personal income. UC San Diego Extension offers 2,000 continuing education courses to working professionals and other adult residents in the region. UC San Diego faculty and alumni have started hundreds of successful companies in San Diego, California, and around the worid. An estimated $1,710 billion in salaries and wages, goods and services, and construction were spent by UC San Diego in the County of San Diego. The 1.431 million visitors to UC San Diego spent $6,266 million in San Diego County in FY 2006-07. Lester 3. Frederick Biedenweg and Catherine Gardner. "Stanford University: Economic Impact Study 2008." Stanford Universitv Office of Public Affairs. Summer 2008. Stanford University. 18 Sep 2012 <http://www.stanford.edu/dept/govcr/documents/economic-impact-study.pdf>. ^ Amy L. Herman, Courtney Rash and Justin Bain. "A Study ofthe Economic Impact and Benefits of UC San Diego." CBRE Consulting, Inc. 7 Jul 2008. .University of California San Diego. 18 Sep 2012 <http://ucsdnews.ucsd.edu/economicimpact/>. 3 Request for Proposal for Higher Education Consultant Services Kathy Dodson March 12, 2013 1 Higher Education Institution Benefits to the Local Community •Creates world class educational opportunities •Supports hiring, training and research needs of local businesses 2 •Enhances Carlsbad’s reputation as a leader in innovation and discovery Efforts to Date •The goal team on this effort: –Determined the feasibility of the Farmer’s and other sites as potential locations for a higher education or research institution –Investigated benefits of attracting a higher education or research institution –Researched existing models for attracting an institution –Spoke with higher education representatives to determine their needs in deciding to expand to new locations 4 Higher Education Institution The goal team uncovered a need for detailed information regarding the academic profile of the region and a detailed industry needs assessment. Outside technical expertise is required for an adequate analysis. 5 Request for Proposals •Scope of work for a Request for Proposals would include: –Developing a regional academic profile –Determining local industry needs –Identifying potential partners –Developing a recruitment strategy & implementation plan 6 Recommendation •Authorize staff to issue request for proposal for higher education consultant services •Direct staff to return to city council for contract and funding authorization upon selection of a preferred vendor 7 Questions? 8