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CONSIDERATION OF APPROVING A THREE-YEAR MASTER SERVICES AGREEMENT WITH OPEN COUNTER ENTERPRISES, INC.
RESOLUTION NO. 2017-013 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE FORMAL BID REQUIREMENT, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A THREE-YEAR MASTER SERVICES AGREEMENT WITH OPEN COUNTER ENTERPRISES, INC. AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
OpenCounter develops a custom web based online interface, or portal, that allows citizens, developers and businesses to access key zoning, permitting and fee information related to their proposed project. The platform will function as a virtual pre-development meeting that develops a customized roadmap that can be relied upon, thereby providing certainty around process and cost to the customer.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
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Environmental Determination
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and ahs determined that the activity if not a “project” as defined under Section 15378 of the State CEQA Guidelines because it wil not result ina physical change in the environment; therefire, pursuant to Section15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, No environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
OpenCounter Enterprises, Inc. <https://opencounter.com/> is a San Francisco-based technology company that develops web-based tools to help cities support local economic development activities. OpenCounter has developed a custom web based online interface, or portal, that allows citizens, developers and businesses to access key zoning, permitting and fee information related to their proposed project. The interface is a public-facing interview driven platform that asks the user a series of questions about their project. As the user answers the questions the system will develop a report that provides zoning, a list of required permits and a corresponding list of fees that will be required to be paid. The report provided to the customer will outline the requirements and fees required not only by the city but also by outside agencies. The platform will function as a virtual pre-development meeting that develops a customized roadmap that can be relied upon, thereby providing more predictability around process and cost for the customer.
The City of Chula Vista business license database reports approximately 90% of City businesses as “small business.” Small businesses meaning less than 20 employees, which nationwide account for 89.6% of all businesses in the United States (U.S. Census Bureau). City staff receives, on average, 20 to 30 inquiries per month from existing businesses and start-up businesses on zoning, permitting and fee information in relation to their proposed project. City staff believes that OpenCounter will be a proactive platform that will provide up to date information to assist businesses in making informed and effective decisions.
In addition, the City will receive regular analytics from OpenCounter related to who the users of the system are and whether they proceeded with their project. This data will allow economic development staff to follow-up with prospective businesses and developers. The successful deployment of OpenCounter is expected to provide a greater level of customer service to our clients, reduce the inefficiencies of having to contact staff for questions on cost and process and provide a “lead” contact database for staff to follow up with potential small business entrepreneurs. In addition, the site collects valuable information that will serve to inform economic development strategies be defining which neighborhoods or districts have the most permitting activity, what kinds of businesses considering starting and what is the average cost and time frame for a particular entitlement process. OpenCounter is responsible for creating a unique portal specific to Chula Vista’s rules, regulations and incentives and as the platform continues to advance and add more features, the Chula Vista portal will be upgraded at no additional cost.
Sole Source:
There are no competitors in the market that have products like OpenCounter which provides site specific zoning, permitting and fee data based upon customer inputs. However, system integration firms, such as Accenture, Oracle and SAP have permit process programs but they require custom coding, consulting and policy refinement and are not customer focused. In addition, Intuit has began to do online permitting but so far this service has been limited to single record applications and/or downloads and do not feature permit discovery and has a cumbersome process to amend and update the City’s regulatory environment.
Some of the unique features of OpenCounter:
• Unified application portal to development services tailored to the community’s existing rules and processes. Not tied to record types, end users do not have to fill out redundant information.
• Content triggered dynamically based on user input
• Geo-enabled permitting to display requirements, licenese and permits based on zoning, special districts and other geographic features
• Designed for citizens, easy to navigate, easy to use
• Online property lookup
• Radius based rules
• Site selection. Similar business data overlays
• Content triggered by location, business type of user inputted answers
• Dynamic calculation of fees based on user input
• Powered by OpenCounter but designed to match branding/look/feel of individual communities
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. OpenCouneter supports the Economic Vitality goal by assisting in identifying and recruiting complementary businesses that provide quality employment and expand the goods and services available to the community.
CURRENT YEAR FISCAL IMPACT
The current year costs for this program total $92,750; $40,050 dollars to configure the system and integrate it with the City’s permitting software (Accela Automation), the balance will be used for the first year subscription costs. These costs will be offset by $86,000 in unanticipated revenues received from the City of San Diego for the administration of the Enterprise Zone and the remaining $6,750 will come from the existing Economic Development budget. Staff is requesting an appropriation of $86,000 to the Supplies and Services category of the Economic Development Department’s budget, this appropriation will be offset by unanticipated revenues.
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ONGOING FISCAL IMPACT
The ongoing fiscal impact will be $55,000 per fiscal year, for a total impact over the contract period of $202,750. The appropriation in the current fiscal year will be sufficient to cover the fiscal year 2018 subscription costs. Staff will request funding for the fiscal year 2019 and fiscal year 2020 subscription costs as part of the annual budget process.
ATTACHMENTS
1. Master Services Agreement
Staff Contact: Eric Crockett, Director of Economic Development