SR 06-25-2019 3R
City Council
Report
City Council Meeting: June 25, 2019
Agenda Item: 3.R
1 of 5
To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development, Economic
Development Division
Subject: Award Contract to Guidehouse LLP for Economic Sustainability Strategy
Recommended Action
Staff recommends that City Council:
1. Award RFP #209 to Guidehouse LLP to provide professional services for
developing a long-term economic sustainability strategy for the City;
2. Authorize the Assistant City Manager to negotiate and execute an agreement
with Guidehouse LLP in an amount not to exceed $463,650 (including a 10-
percent contingency) for one year, with one additional one-year renewal option at
no additional cost, for a total amount not to exceed $463,650 over a two -year
period, with future-year funding contingent on Council budget approval.
Summary
In late 2017, Council directed staff to develop a long-term economic sustainability
strategy to anticipate and address inevitable global and local economic changes while
safeguarding the community’s resources and services. After months of research and
dialogue, the City identified several emerging themes related to exponential global
changes in artificial intelligence, user options, and connectivity, including that computers
are getting better at learning and performing complex tasks, more accessible and
affordable options are available to users across a wide variety of sectors, and people
continue to grow more connected to one another, as well as to goods and services,
through improvements in technology, transportation, and infrastructure. With respect to
Santa Monica’s economy, these interrelated, underlying global trends will likely have
significant impacts on work, transportation, and retail.
Previous generations of forward-thinking local leaders built and implemented strategies
to sustain the City’s infrastructure and services, support Santa Monica’s key economic
drivers, and reinforce community values. With similar thoughtfulness and forethought,
2 of 5
Santa Monica now has an opportunity to consider how to adapt to global changes of the
21st century while continuing to support what makes Santa Monica special and unique.
Following a competitive Request for Proposals process, staff recommends entering into
an agreement with Guidehouse LLP to build upon the identified emerging themes and
develop an innovative, proactive strategy to harness disruptive technologies and trends,
fostering a more equitable and resilient economy that will serve the community for
decades to come.
Discussion
To ensure that Santa Monica’s local economy – and the opportunities, services, and
infrastructure it supports – continues to thrive long into the future, the City must
anticipate and plan for the technological and economic changes that are already
beginning to unfold and impact Santa Monica. Pursuant to Council direction, staff issued
a Request for Proposals to identify an interdisciplinary team of experts who will support
the City’s efforts to develop a long-term economic sustainability strategy by:
• Collecting input from community members, businesses, local thought-leaders,
researchers, and institutional partners.
• Taking inventory of external opportunities and threats, as well as internal
strengths and weaknesses.
• Exploring potential market opportunities that would enable Santa Monica's
economy to continue to thrive within the context of the regional, national, and
international economy.
• Identifying best practices for the City to stay ahead of future disruptions and
nimbly manage impacts on the local community.
• Developing governing, legislative, and community implementation approaches.
• Supporting the City’s Framework, values, goals, and priorities.
• Evaluating how to support future investments in planned and desired local
infrastructure and placemaking, which in turn could bolster sustained economic
prosperity.
3 of 5
While staff has completed extensive background research to understand the
transformational trends that will impact the future economy, there is no roadmap to
address the issues. Santa Monica is one of the first cities to look at these looming
changes holistically, considering how they will interact with one another and ultimately
affect the different facets of our community’s economy. Staff was impressed with
Guidehouse LLP’s work with a variety of institutions on issues and projects at the
intersection of innovation, sustainability, technology, and equitable economic
development. Given that there is no roadmap for the Economic Sustainability Strategy,
Guidehouse LLP is enthusiastic about partnering with the City to develop strategies to
support a vibrant, equitable, and sustainable 21st century economy in Santa Monica.
Vendor Selection
RFP Data
RFP Posting
Date RFP Posted On
RFP Advertised In
(City Charter &
Municipal Code)
# of Vendors
Downloaded
# of
Submittals
Received
Date Publicly
Opened
12/18/2018
City's Online
Procurement
Site
Santa Monica Daily
Press 33 15 3/8/2019
RFPs Received Selection Criteria
AerialZeus, LLC Numina
Municipal
Code SMMC 2.24.190
Akido Labs RAND
Corporation
Evaluation
Criteria
Experience and Qualifications, Proposed
Approach, Proposed Partnership
Bioenergy Devco SPLT
cg42 Star Insights
CityBase TFR Transit
Inc.
Gehl Tierra West
Advisors, Inc
Guidehouse LLP WSP USA Inc.
Intelligent Futures
Inc.
4 of 5
Justification to Award
The City received proposals from teams with varied expertise and recommended
strategies to address the City’s needs. Staff interviewed three shortlisted firms. Based on
the criteria in SMMC 2.24.190, staff recommends Guidehouse LLP as the best qualified
organization to provide expertise in developing a long-term economic sustainability
strategy. Guidehouse LLP prepared an innovative and detailed approach and
demonstrated a clear understanding of the Economic Sustainability Strategy, arranging a
tailored pool of talent, tools, and resources.
Guidehouse LLP is a leading provider of strategy, management, and technology
consulting services to the public sector. They have experience in solving tough
challenges through the co-creation of scalable, innovative solutions to prepare for future
demographic, socioeconomic, and technological changes. Headquartered in
Washington, DC, Guidehouse LLP has more than 1,800 professionals in over 20
locations, is a Veritas Capital portfolio company, and is led by seasoned profe ssionals
with proven and diverse expertise in traditional and emerging technologies and markets
and agenda-setting issues driving national and global economies. Primary team
members assigned to the project are based in Guidehouse LLP’s Los Angeles office.
Guidehouse LLP is supplementing its team for the project by partnering with other firms
and non-profit organizations, many of which are based in Southern California and are
well acquainted with Santa Monica and the region. They include Los Angeles Cleantech
Incubator, Siemens, and Estolano LeSar Advisors. Additionally, Guidehouse LLP
proposes to bring in expertise from individuals at organizations including PwC, the
World Business Council for Sustainable Development, and Stanford University.
Development of the strategy, including scoping, development and analysis of impact
pathways, distillation of insights, strategy design, and policy and decision integration, is
anticipated to occur over the course of one year, including community participation.
Past Council Actions
Meeting Date Description
09/26/17
(attachment A)
Council held a study session to initiate direction regarding the scope of a
strategy to address Santa Monica's long-term economic sustainability.
5 of 5
12/05/17
(attachment B)
Council provided direction regarding the process to develop the scope of the
City’s long-term economic sustainability strategy.
09/11/18
(attachment C)
Council authorized staff to issue of a request for proposals (RFP) in order to
identify and select a team of experts to help develop a long-term economic
sustainability strategy for the City.
Financial Impacts and Budget Actions
Staff seeks authority to enter into an agreement with Guidehouse LLP to develop a
long-term economic sustainability strategy for the Santa Monica. Funding is available in
the Housing and Economic Development Department budget as outlined below.
Contract Request
Request Amount FY 2018-19 Budget Department Account # Total Contract Amount
$463,650 01160001.552010 $463,650
Prepared By: Julie Wedig, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. September 26, 2017 Staff Report
B. December 5, 2017 Staff Report
C. September 11, 2018 Staff Report
D. Guidehouse LLP Oaks Initiative Form
CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s
text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It
prohibits a public official from receiving, and a person or entity from conferring, specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), ( 4 ) , o r ( 6 ) , o f t h e
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
Kevin Sanders Contracts Manager
ksanders@guidehouse.com 703-477-0412
Guidehouse Holding Corporation (99% ownership)
1) Scott McIntyre, Chief Executive Officer, 2) Deborah Ricci, Chief Financial Officer, 3)
Charles Beard, Chief Operating Officer, 4) Edward Eich, General Counsel.
N/A
5/16/19
REFERENCE:
Contract No. 10875
(CCS)