FOR COUNCIL MEETING OF:_ January 24, 2011

AGENDA ITEM I 4.3 (e)

TO: MAYOR AND CITY COUNCIL

THROUGH: LI A t:\~RRIS, CITY MANAGER

FROM: HN H~~TERIM DIRECTOR

BAN DEVELOPMENT DEPARTMENT

SUBJECT: DOWNTOWN ECONOMIC IMPROVEMENT DISTRICT (EID):

ADMINISTRATOR SELECTION PROCESS

. ISSUE:

Shall the City Council approve the change from a Request For Proposal (RFP
procurement process) to a Special Procurement Process for the selection of an EID
administrator?

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 of

property and business owners who have determined there is an economic benefit to
them paying a tax for specific services within a per-determined boundary. These
services CQuid include business recruitment, marketing and promotion, beautification,
security and maintenance.

On October 25, 2010, City Council approved an extension of the Salem Downtown
Economic Improvement District and proposed a timeline for the solicitation and
selection of an Administrator prior to initiating the public hearing and remonstrance
process. The report also outlined steps for this process which included the
establishment of a task force, solicitation materials, and process for the public hearings
relating to the remonstrance period and proposed assessments.

In order to provide a cohesive and supportable process for the selection of an EID
Administrator, staff recommends a Special Procurement Process under the City of
Salem Contracting Rules, PCR 4.3. which allows for an alternative contracting
procedure that will be an alternative to the competitive procurement process.

Downtown Economic Improvement

District (EID) Page 1 of 3 January 24. 2011
FACTS AND FINDINGS:

Staff has solicited input from property owners and businesses, in addition to inviting
representatives from the Chamber of Commerce, CANDO Neighborhood Association,
Travel Salem, Downtown Advisory Board, Salem Downtown Partnership, and Go
Downtown Salem to a stakeholder meeting. Based on the information shared at the
meeting and subsequent communication with downtown stakeholders, staff believes it
would be very difficult for the City to identify and implement an RFP process that would
meet the expectations of a majority of the downtown property owners and business
owners. Therefore, staff recommends that Council approve the change from an RFP
process to a Special Procurement Process for selecting an EID Administrator once an
organization steps forward and demonstrates they meet the requirements set forth in
SRC Chapter 44 (Attachment A), have the support of a majority of the property owners
and business owners within the EID district boundaries, and meet the criteria outlined
for the Special Procurement Process.

If this process is approved by the City Council, staff will prepare a submission guidance
document providing the specific criteria needed, the process for submitting a proposal,
and will provide that document to interested parties. In summary, proposals from an
organization interested in serving as the EID Administrator should provide the Council
with specific information on their proposed activities, budget, and performance
measures. They will also need to provide sufficient information demonstrating their
compliance with SRC Chapter 44 which includes:

• That EID funds will be spent on services and programs identified in ORS
221.112(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 activities
occurring 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 Downtown
Economic Improvement District;
(5) Cleaning and maintaining the public spaces within the Salem Downtown
Economic Improvement District;
(6) Provision of safety and security in the public spaces within the Salem
Downtown 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 of
the voting members on the board being real property owners within the Salem
Downtown Economic Improvement District.

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

Downtown Economic Improvement

District (EID) Page 2 013 January 24, 2011
44, staff suggest the Special Procurement Process include the following types of
information that would benefit the Council in making a decision regarding the future EID
Administrator:

• 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 EID
Administrator;
• Majority support from the property owners and a majority of the business owners
for their proposed scope of services to be provided;
• Majority support from the property owners and a majority of the business owners
for 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 located
on Ferry Street, if that space remains available.

To have an EID effective July 1, 2011, an organization would need to submit a request
for Council consideration no later than April 1, 2011. If for some reason an EID
Administrator is not selected prior to the April 1, 2011, deadline for funding effective July
1, 2011, the City Council would need to consider an ordinance amendment to change
the date of the levy.

Staff will make themselves available to answer any questions or provide support to the
downtown stakeholder organizations, property owners, and businesses who are
interested in submitting a proposal to the Council to provide Salem Downtown
Economic Improvement District Administrator/Service Provider services.

Next Steps:

If a proposer steps forward, staff will prepare the Special Procurement Process criteria
and submission requirements.

Attachment A: SRC Chapter 44

Prepared by: Sheri Wahrgren, Downtown Revitalization Manager

G:IURBANDEvv\DMINISTRATIONIFinal Council Staff Reports\2011lJan 241EID StrategylDowntown Economic Improvement
Districtvers3_7.doc

Downtown Economic Improvement

District (EID) Page 30f3 . January 24, 2011