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HomeMy WebLinkAbout2018-005 EVC (Economic Vitality Corporation)DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E384E QW MEMORANDUM OF UNDERSTANDING FOR THE ALLOCATION OF COSTS RELATED TO THE FUNDING OF AN ECONOMIC IMPACT ANALYSIS / FINANCIAL IMPACT ANALYSIS AND STRATEGIC PLAN DEVELOPMENT, BY AND BETWEEN THE ECONOMIC VITALITY CORPORATION AND THE CITIES OF ATASCADERO, GROVER BEACH, MORRO BAY, PASO ROBLES, PISMO BEACH AND SAN LUIS OBISPO AND THE COUNTY OF SAN LUIS OBISPO THIS MEMORANDUM OF UNDERSTANDING ( "MOU "), dated for reference as of May 4, 2018, is entered into by and between the Economic Vitality Corporation, a California corporation ( "EVC ") and the Cities of ATASCADERO, GROVER BEACH, MORRO BAY, PASO ROBLES, PISMO BEACH AND SAN LUIS OBISPO (each, a "City," and collectively, the "Cities, ") and the COUNTY OF SAN LUIS OBISPO ( "the County ") (each city and county a "Party" or collectively, the "Parties "). RECITALS A. In 2017, a working group of the Parties, with the Economic Vitality Corporation ( "EVC ") and other community partners and business leaders, sought qualified vendors to perform an economic and financial impact analysis study to help develop a strategic plan to address the identified impacts and provide meaningful guidance for the Parties' jurisdictions, both individually and collectively, in both the public and private sectors, in connection with the upcoming closure of Diablo Canyon (the "Project "). B. On May 4, 2o18, EVC entered into an agreement with Vital Economy, Inc. ( "Vital "), authorized to do business in California to engage Vital's services to perform the Project (the "Agreement "). C. The Parties and EVC understand and agree that while EVC is the contracting party under the Agreement, the Project is ultimately for the benefit of the Parties and their respective constituents. D. The Parties and EVC understand and agree that a portion of the cost of the Agreement is being funded by the Parties, and the Parties are not obligated to expend any funds above those committed as stated in this MOU and shown on Exhibit A. E. The Parties and EVC agree that EVC is leading the fundraising efforts to finance up to $359000 of the Project in accordance with this MOU. F. The Parties and EVC enter into this MOU to memorialize their commitment to their participation in the Project and financial obligations with regard to the Agreement. NOW, THEREFORE, the Parties and EVC agree as follows: Page 1 of 9 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E 1. The above Recitals are true and correct. 2. The Parties accept the Budget, attached hereto as Exhibit A. 3. The Parties accept the statement of work for the Project, attached hereto as Exhibit B. 4. The Parties accept the timeline for the Project, attached hereto as Exhibit C. 5. The Parties and EVC acknowledge that the Budget for the Project does not include potential additional costs for EVC staff and contractors, and that EVC has identified an initial budget for said staff and contractors of $300,000. When combined with the Budget, the total estimated project costs are $1,121,000 ( "Total Budget "). 6. The Parties and EVC acknowledge that the Total Budget exceeds the ability of the Parties to fund the Project. As such, the Parties and EVC agree as follows: a) The Parties agree to certain funding commitments to the Project (`Local Government Funding "), as set forth in Exhibit A, to EVC who has established a consultant payment account established for the Project (the "EVC Diablo Canyon Project Account "). Each Party shall deposit its payment into the EVC Diablo Canyon Project Account no later than July 31, 2018. A list of each Party's pledge with respect to the EVC Diablo Canyon Project Account is attached hereto as Exhibit D. b) The Parties and EVC acknowledge that the funding gap at the outset of the Project is $359000 ( "Funding Gap "). EVC agrees to close the Funding Gap through a fundraising effort that will include direct outreach to local businesses, pursuit of grants, and other funding sources as identified, and other EVC or Project cost savings. c) The Parties and EVC agree that sufficient Local Government Funding is available to pay for Vital's services related to Phase 1 of the Project ( "Economic and Fiscal Impact Analysis "). The Parties and EVC acknowledge that use of Local Government Funding for Phase 2 of the Project ( "Economic Strategy and Implementation Planning ") will be contingent upon EVC closing the Funding Gap in accordance with Section 6(c)(i) below and its performance in managing the Economic and Fiscal Impact Analysis. i. Funds required to close the Funding Gap will be raised by EVC according to the following schedule: 1. A minimum of one -third (1/3) of the Funding Gap, or $120,000, will be raised by August 30, 2o18. 2. A minimum of two- thirds (2/3) of the Funding Gap, or $240,000 will be raised by November 30, 2018. Page 2 of 9 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E 3. The total Funding Gap, or $359000, will be raised by February 28, 2019. ii. As funds are raised according to Section (6)(c)(i) above, EVC shall deposit the funds in the EVC Diablo Canyon Project Account. iii. The time schedule may be extended by consent of the majority of the Parties, which consent shall not be unreasonably withheld or delayed. iv. EVC shall be responsible for managing the Project, which shall include, without limitation, keeping the Project on budget, timely payment of invoices, keeping the Project on time and timely producing and communicating accomplishments of milestones to the Parties. EVC will also be responsible for interacting with Vital, community members, Parties and Project participants, as well as coordinating community engagement efforts. v. Nothing contained herein shall preclude EVC from requesting additional funding from the Parties, which additional funding may be withheld in the discretion of each individual Party. 7. The Parties agree to commit reasonable staff time to assist Vital in development of the Project. Such efforts may include, but shall not be limited to, participation in the Project committees, attendance at meetings and workshops, support compiling and formatting government data, review of relevant deliverables and support with event logistics. The Parties agree to work collaboratively with Vital and EVC in furtherance of the Project and all corresponding activities. a) As part of its commitment to Project success, the County agrees to make office space, conference rooms and other resources available, at no cost, to EVC. The County makes this commitment to promote integration of Project staff with local government resources that will enhance communications and improve Project efficiencies. 8. The Parties and EVC agree that nothing in this MOU will require or prohibit a Party's jurisdiction from voluntarily contributing more funding towards the Project or other support efforts in connection with the Project or the Agreement. 9. Effective Date. Except as set forth above, this Agreement shall be effective for the period from May 4, 2o18 until each Party and EVC has made the last payment required under Section 6, of this MOU. 1o. Entire Agreement. This MOU is the entire agreement among the Parties and EVC with respect to the Project and supersedes any prior written or oral agreements with respect to the Project. Page 3 of 9 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E 11. Assignability. Except as otherwise expressly provided for herein, no Party or EVC shall assign any of its obligations or rights hereunder without the written consent of all Parties. 12. Notices. Any notices required to be given pursuant to this MOU shall be given in writing and shall be mailed to all Parties and EVC to the Agreement, directed to the County Administrative Office and County Counsel, and to the City Manager or City Administrative Officer and City Attorney of each City and to the CEO and Project Manager of the EVC. 13. Counterparts. This MOU may be executed in multiple counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement. Documents executed, scanned and transmitted electronically and electronic signatures shall be deemed original signatures for purposes of this MOU and all matters related thereto, with such scanned and electronic signatures having the same legal effect as original signatures. 14. Audit. The Parties may inspect and /or audit all records and other written materials, including but not limited to the EVC Diablo Canyon Project Account, used by EVC in connection with the Project or the Agreement and any invoices or payment obligations to Vital relative to the Agreement. 15. Good Faith Efforts. The Parties and EVC shall each act in good faith in performing their respective obligations as set forth in this MOU and shall work diligently to maintain their longstanding cooperative relationships. 16. Amendment. This MOU may only be amended in writing, signed by all Parties and EVC. IN WITNESS WHEREOF, by their execution below, the Parties agree to the terms of this Memorandum of Understanding. The Parties further agree and acknowledge that execution of this MOU by the County Administrative Officer and City Managers below is a representation by each Party that it has duly approved this MOU. Fiocu' DSgned by: Dated: 6/5/2018 5:03:02 PM PDT , i+ RMAN, ECONOMIC VITALITY CORP. Dated: 6/5/2018 5:17:14 PM PDT I �a� J' Dated: R, ECONOMIC VITALITY CORP. 6/5/2018 5:13:14 PM PDT I kd)'ad Al u " PRESIDENT /CEO, ECONOMIC VITALITY CORP. DocuSigned by: 6/7/2018 5:44:33 PM PDT 7.1" " '' 711- °�' Dated: B,SFCCxtDFe4A1 _ CITY MANAGER, CITY OF ATASCADERO Page 4 of 9 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F789707E3B4E DocuSigned by: 6/6/2018 8:12:57 AM PDT F tMt " EV In.S6LA, Dated: G41BB49A G9649F... '.SAGER, CITY OF GROVER BEACH Dated: 6/6/2018 10:28:23 AM PDT j� XAGER, CITY OF MORRO BAY 6/11/2018 9:26:23 AM PDT 'vKA Fn4 " Dated: 75.- GER, CITY OF PASO ROBLES Dated: 6/19/2018 6:02:29 PM PDT �' GER, CITY OF PISMO BEACH Dated: 6/6/2018 11:25 :06 AM PDT �bSbin C �(GER, CITY OF SAN LUIS OBISPO Dated: 6/20/2018 9:32:48 AM PDT �a�t (�bVEbtn COUNTY ADMINISTRATIVE OFFICER, COUNTY OF SAN LUIS OBISPO Page 5 of 9 DocuSign Envelope ID: C4078508-171A-418F-813A-F7B9707E3B4E EXHIBIT A Page 6 of 9 i X 3MsS88s�88'� 8R�88S ��. $a898 8898 °8 :'.S 9ag9a 8�88t88�889 86�8F N � r ° o es� � 2-a 9m ° 1'11'1 $588888 °888e a8 &885889. 8ss8 oqo rqo ct}. 8^8 9.88,°.,8889a 8,,,99888 8 3�.e�., 8�b 8�8.�m8a88r8�a.R 8 «88 «8.R &88 �. ��8� N x ° a a c Q 9S m 883 988. �88 9 8a�8888 fi E - - o s 98FSPSSg9sss 9frN� a 9 9s a S# gy � �R 8 u.�9��88 °888°9 g� m $8888$��888� mnmmmmmm s<e -- ° ° °rm °M "" a a aaa ° ° ° °° ° ° "° " a Etaaaaaaa aa ag. ° " " " "aaaaaaa aaaaaa " "aaaaaa ° .° ° ° ° eo °° °off" ° '" Nga:� €aao�e °$N "aNa�aas " �aaaas V - ° ° ° ° ° ° °e °° ° ° ° ° ° °° ° ° - -- -- A a--- aaaasBN��� - - - - - a :.. as a3 SS f4 Y E R s 3 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E EXHIBIT B STATEMENT OF WORK Page 7 of 9 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E SLO Scope of Work (SOW) Description Phase 1: Preparation (May — September 2018) TASK # 1— Prepare a Detailed Project Plan • Prepare and provide EVC with a SOW with detailed description, budget, travel estimation and project schedule. 3- Identification and Acquisition of Regional Reports /Background Materials • Acquisition of community /economic development studies and plans completed in the past five years and preparation of relevant summary. This information builds a platform for the project to build upon. 4- Design of Regional Economic Development Planning Committee • Identification, interviews and selection of individuals to join the projects leadership committee. The committee will consist of a balance of expertise, regional orientation and interests. 5- Formation of city /county economic development strategy group • Identify and invite community and economic development practitioners to participate in the regional group. The purpose of this group is to bring together practitioners to share projects and priorities and communicate strategies back to their constituencies. • The stakeholders who have sufficient access to information and community resources to enable this work. Included should be the major employers, major investors, Government officials, elected officials and CEOs of primary charities and social services agencies operating within the county and cities. This is a working and voting group for purposes of planning. 6- Engagement Planning and Definition of Digital Platforms • Planning meetings with EVC to determine existing communication systems and platforms and determination of new /additional communication systems and plans for the project. 7- Programing and launch of communication platform • Identification and establishment of communication and repository sites for the initiative and open access to regional leaders. The platform may consist of social media, collaboration tools, websites, survey tools, messaging and documents storage. 8- Create contact list of Technical Working Group • A list of local, regional, state and nation -wide contacts to establish a pool of expertise to engage when required during the initiative. Federal, State, Regional or local specialists (Environmental, legal, transportation, water, planning, etc ?) who will remain informed about the Strategic Planning Process and advise (upon request) the various stakeholder groups of this project. This will be a non- voting group in this planning process. Requests to members of this group will be coordinated via the team leader to the project manager to the TAG. 9- Establishment of phased Closure Schedule • Coordination with the UC Berkley SB 968 Research team to define the primary closure scenarios so that Vital can estimate EIA, FIA for future periods based upon the closure scenarios. DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E 10- Inventory of employers, businesses, educational services • A major list of key employers, businesses, education institutions, social services and other key entities for contact, review and analysis and input to EIA, FIA. Phase 1: Assessment (June 2018 — January 2019) 12- Site Visit and Project Launch • Initial consultant team visit to launch the project including first Leadership Committee meeting and confirmation of the project work plan. • Confirmation of EIA /FIA meeting plan, schedule and regional engagement 14- Shared Ownership Plan • Engagement Planning — during this task our priority is to assess the most effective way in which to engage with the county and its communities. Having a clear plan also helps our team determine the best tools necessary to support our engagement efforts. During Phase I, we will conduct a discovery session to determine the most appropriate engagement approach: • Consult - with this approach, our goal is to elicit community opinions, perspectives, ideas, solutions and priorities. The key to obtaining strong community feedback consists of interviews, surveys, focus groups and or roundtable discussion. • Involve — a step beyond consulting is to involve the community stakeholders to the degree appropriate. If this approach is preferred, our tools to support it must genuinely reflect the input from the community. We do this by conducting citizen panels over the course of several days, and /or deliberative polling where community members are invited to gather to discuss and deliberate specific topics lead by a moderator. • Defining Methods of Digital Deliberation - Embracing online methods to communicate and collaborate in accordance with the engagement approach is critical for a successful shared ownership plan. Our team will define the best tools including but not limited to: • Community Website —this site may or may not require formal approval to join. This will depend on the approach for engagement. The most beneficial features of the site will include Community Directory, Content and File Repository, Online Forms, Polls and Surveys, FAQs, Blog, Activity Feed, and Shared Calendar • Digital Communication options should be discussed and determined as well. U @lizing email and the frequency of email communication is a top priority. • Video based teleconferencing is highly encouraged for meetings in particular because the video broadcasts can be recorded and viewed by those unable to attend. o Social media platforms provide an emerging mechanism for engaging a large and dispersed group of participants that may not otherwise have the opportunity to contribute. In addition, social media can generate discussions that are useful for gathering opinions, information, and can be used as a barometer of engagement progress. • Implementing Digital Communication Tools /Platforms — once the engagement plan and digital approach are defined, our team will commence bringing each to life. • Ongoing Digital Management and Maintenance — upon launch and throughout Phase I and Phase II, our team highly recommends allocating @me to manage and maintain each digital platform as well as the distribution of the content. • Transition Plan - to the appropriate team and /or commi2ee members, post Phase II, the digital communication tools and platforms will be transferred including required training. DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E 15- Stakeholder Interviews • VE will acquire Stakeholder input via in- person or phone interviews conducted to clarify understanding or expand on input received during the Phase 1 and Phase 2 planning work. We will adhere to privacy laws and aggregate results to post for the public view. 17/18 - Community Readiness for FIA, EIA The community readiness assessment framework will include the following components. 1. Regional Collaboration: Meaningful & sustainable grass -roots collaboration across public, private, non - profit and traditional political boundaries 2. Leadership Excellence: Empowers proactive leadership to take ownership of their economy; grows leaders with accountability, authority, legitimacy & transparency 3. Change Management: Adopts the eight steps critical to managing change that enables the region to more effectively participate and compete in the global economy 4. Balanced Approach: Integrates economic development, education & workforce development assets with the private sector to build effective knowledge based economic, human capital & quality of place centers of excellence S. Asset Based Approach: Identify, connect and leverage tangible and intangible assets to sustainably grow and transform the regional economy 6. Measurable Outcomes: Employs measurable benchmarks, goals and strategies which transform the region through measurable outcomes 7. Innovation & Entrepreneurship: Builds innovation ecosystems that create a lasting regional climate of entrepreneurship, risk taking and innovation 8. Life Cycle Finance: Provides access to a life cycle of equity and debt financing for regional public, private and non - profit ventures 9. Regional Brand Promise: Defines, creates, communicates and delivers on a clear brand promise that promotes & sustains regional competitive advantages 10. Regional Transformation Mindset: Sustains commitment to CED as a journey that is a marathon not a sprint, transformative not incremental. The readiness assessment is more than a report card. It is a useful tool to provide a baseline of information that informs the strategic planning milestones in Phase 2. 21- Community Roles, Typology • Not every community wishes to grow, be a manufacturing center, be an environmentally sensitive and protected limited growth locale or be a historic /cultural center. Indigenous and man made resources along with cultural sensitivities and heritage play a distinct and meaning role in how a community may change, grow and define itself. • Successful economic development for these communities requires recognition of these differences and a compatible support program for how each of these different types of communities can be served by their own vision for accommodating growth and community needs. The VE research team will develop a series of community types, identify their defining characteristics and present how each type may be supported via an economic development initiative that will support their community vision for it's future. DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E 23— Establishment of Core regional metrics • A regional community economic development metrics framework will be prepared as a tool to provide a quantitative vision of the future. The metrics will consist of three types; region wide existing scorecard; core performance metrics such as population, average wage, jobs, etc.; regional unique performance metrics, that relate to regional challenges, opportunities, strengths and weaknesses. 24- Final EIA /FIA Report • Preparation, delivery and presentation of the results of the EIA /FIA study analysis and conclusions. 25- Stakeholder workshop • The stakeholder workshop will take place towards the end of Phase 1 Assessment and will include all municipalities and other public agencies and non - profits. The workshop will present the findings from the EIA /FIA and assessment of the strengths and weakness of each community structures. 26- Phase 1 final report ® The Phase 1 Final report will provide a summary of all the work completed in Phase 1 with conclusions and recommendations for it use in Phase 2, strategy development. 27/28/29- Leadership Training — Capacity Building • This provides a bridge between the Phase 1 Economic Impact Analysis and the Strategic Planning in Phase 2. The purpose of this milestone training is to establish a solid and clear understanding of the research and information from Phase 1 and building an understanding of the Phase 2 work plan and the roles and responsibilities for all involved. During the training sessions, each of the committees (Leadership, Economic Development, Communications) will determine a meeting schedule, leadership positions and agenda development process that will govern the rest of the strategic planning process. Phase 2 - Strategy Development (April 2019 — August 2020) Foundation Milestone - This milestone establishes the base by which the next three steps and the regional economic development strategy will be created. The following are the key components that will occur during this phase. 31- Foundation Milestone Event: This is a regional workshop event to report on the project progress, describe the work plan for this milestone, engage the a2endees through input exercises to increase knowledge and participation. • Identification of issues of challenge and opportunity: Through facilitated meetings, individual interviews and the conclusions of the community readiness assessment a set of priority issues facing the region's economic future are determined. In addition, the areas of opportunity are identified that may have been pursued and just not realized. The concepts, themes and data collected inform the region's statement of current reality, vision statement, performance metrics and goals framework. 32- Regional Benchmark Report: Benchmarking is done to provide a point in @me analysis of the economy. It uses a number of metrics from reliable and readily available sources. The review of the data includes, at a minimum, a one - decade trend review and comparison to state and national trends. The benchmark report will be an outcome of Phase 1. 4 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E 33- Creation of a Current Reality Statement: This statement defines the motivating factors in the region to begin a transformation process. 39- Creation of a Vision Statement: It describes the desired future state and includes what makes the region special and unique in terms the community understands. 35/36/37/40/41- Economic Goal Setting: Using the economic benchmarking data and the issues of challenge and opportunity regional leaders will prepare a set of 5 and 10 year goals. In addition to the base metrics used in the benchmarking, regionally unique metrics and priorities are benchmarked and goals set. During the goal setting process, it is critically important that review and verification is done to make sure projections are reasonable but still reflect the vision. The final step in the goal setting process is to take the job creation goals and disperse them into high wage, average wage and wage improvement categories. 42- Shared Ownership Plan — Monitoring — Phase Reports — Releases: Provide EVC and the Leadership Committee an initial progress report on the functionality and performance of the communication platforms and shared ownership plan. This report will include samples of the communications and level of audience engagement. 43- Recruitment Plan: The four - milestone framework is designed to be used in the context of a regional community economic development initiative. An initiative is a movement or campaign involving hundreds of community leaders focusing on the improvement of their economy. Recruitment of representation and participation reflecting the community and regional economy is important. 44- Foundation Milestone Report: This milestone recap report provide information for the baseline or starting point for the initiative including a definition of the current state, an economic benchmark, a qualitative and quantitative vision of the future, a plan to expand participation to target audiences and the kickoff of the work group structure to engage leaders to build ownership in the plan. Discovery Milestone This milestone explores what makes the region unique and categorizes tangible and intangible assets that are in their control. The discovery is more than an inventory of regional indigenous resources; it includes the creation of leverage strategies for each asset to achieve the community economic development goals. 45- Discovery Milestone Event: This is a regional workshop event to report on the Foundation Milestone, describe the work plan for this milestone, engage the group through input exercises and increase knowledge and participation. 46/48 - Indigenous Resource Asset Training and Mapping: Asset mapping sessions are conducted in open community sessions to uncover as many assets as possible and generate increased knowledge of what is available in the region. Assets are mapped in nine categories; natural, human /skills, knowledge, cultural /historic, geographic, excellence, infrastructure, government and innovation. 47- Launch of Project Working Groups: If short term opportunities that support the initiative objectives are uncovered a Project Working Group may be established and empowered to complete a defined task(s) surrounding the opportunity. 5 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E 49- Asset Development: Each asset is then developed by using the following questions; What is the regions industry relationship? How can the resource be leveraged? What is the value of the leverage? Who will benefit from the leverage? What resources are missing to fully leverage the asset? 56- Business Opportunity Analysis: The mapping exercise and analysis will identify a number of leading business opportunities that show the greatest promise to address the challenges and achieve the initiative goals. 50- Launch of Project Working Groups (3): Again, if short term opportunities that support the initiative objectives are uncovered a Project Working Group may be established and empowered to complete a defined task(s) surrounding the opportunity. Connect Milestone This milestone examines the information obtained in the Discovery Milestone. Examination includes analysis and prioritization of regional assets and targeting of the highest value niche markets and business opportunities. In addition to immediately identified assets and opportunities, the Connect Milestone consists of further exploration of leverage strategies and connection of resources. 53- Verification of Targeted Industry Clusters: Using the information obtained in the Discovery phase the current priority clusters will be analyzed to identify niche industry sectors (Tourism to Experienced Based Tourism, Agriculture to Local Food Systems). Through an analysis of regional assets, overall marketing attractiveness and potential to help reach the regional goals, a group of high potential targeted industry clusters are determined that will have the highest probability to address the DCPP closure impact. 54- Competitive Comparative Analysis: As we begin to define important business sectors for growth it is imperative to understand the growth potential, sales, employment and payroll potential of the various business sectors. We will coordinate with the planning committee and select a set of comparable and competitive markets to analyze for the top seven business sectors targeted for growth. In this analysis we will compare gross sales, employment wages and capital investment versus projections for SLO at a current and future point of development. This will allow us to set targets for growth over time for each of the targeted business sectors. 55- Prioritization of Assets and Opportunities: Through a disciplined analysis process the highest priority assets are assessed in relationship to the region's industry clusters. 57- Connect Milestone Event: This is a regional workshop event to report on the Discovery Milestone, describe the work plan for this milestone, engage the community "connect the dot" input exercises and increase knowledge and participation. 61- Refinement of the Goals Established in the Foundation Milestone: The completion of the asset mapping and business opportunity analysis will initiate a review and potential adjustment of the initially defined regional metrics and goals. 62- EVC Integration — Shared Ownership Plan, Dashboard, Diablo Canyon Closure: Initial planning and schedule for the transfer of platforms, content production and distribution responsibility to EVC. DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E 63- Support of Project Working Groups (3): Again, if short term opportunities that support the initiative objectives are uncovered a Project Working Group may be established and empowered to complete a defined task(s) surrounding the opportunity. Strategy Milestone This final step in the milestone process correlates all information obtained, priorities determined and actions taken. This also consists of lessons learned and the identification of the next steps in the implementation phase. The Strategy Milestone is not intended to prepare a report to "sit on the shelf', but rather it is a report by the leadership team to the community highlighting the path to prosperity. The community report will include at minimum the following components. 66- Multi- jurisdictional initiatives 67- Community goal and metric setting connected to the regional goals 68- Implementation plan 69- Phasing strategy 70- Budget plan 71- Collaborative funding plan 72- Governance and implementation framework 75- Integration of the EVC Dashboard to the strategic plan, metrics and goals 78- S.M.A.R. T Strategic plan and evaluation plan 77- Strategic Plan Celebration. The final milestone event is a celebration of the work completed and mobilizes broader community support around the implementation phase. The event will also emphasize the short -term wins already realized, resources acquired and how more people can get engaged. This is a very thematic event that reinforces the Shared Ownership Plan priorities and objectives. In Region Schedule /Visits VE Alliance members will be working in the region 22 out of the 24 -month term of the project. The EVC project manager will assist VE Alliance members in coordination meeting, workshops and other gatherings. Preparation of Final Regional Strategic Plan The report will include a set of recommendations, actions, and contingency plans for state and local jurisdictions to consider in order to mitigate the adverse economic impacts of shutdown of Public Event • DCPP. The study will include conclusions and recommendations to state and local administrations and agencies to mitigate any adverse impacts. • The contingency plan will include the following recommendations: • Proposed techniques; • A description of the plans selected and the rationale for their selection; • Activities and sources; • Security protections for confidential data; • Breakdown of individual staff hours and responsibilities; • Project schedule, reporting, and budget overview; 7 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E Santa Maria Scope of Work (SOW) Description Phase 1: Preparation (May — September 2018) TASK # 3SM - Identification and Acquisition of Regional Reports /Background Materials o Acquisition of Santa Maria community /economic development studies and plans completed in the past five years and preparation of relevant summary. This information builds a platform for the project to build upon. 4SM — Design of Regional Economic Development Planning Committee • Identification, interviews and selection of individuals from Santa Maria to join the projects leadership committee. The committee will consist of a balance of expertise, regional orientation and interests. SSM - Formation of city /county economic development strategy group • Identify and invite Santa Maria community and economic development practitioners to participate in the regional group. The purpose of this group is to bring together practitioners to share projects and priorities and communicate strategies back to their constituencies. Santa Maria stakeholders who have sufficient access to information and community resources to enable this work. Included should be the major employers, major investors, Government officials, elected officials and CEOs of primary charities and social services agencies operating within the county and cities. This is a working and voting group for purposes of planning, 6SM - Planning, definition, programing and launch of communication platform • Identification and establishment of communication and repository sites for the initiative and open access to regional leaders. The platform may consist of social media, collaboration tools, websites, survey tools, messaging and documents storage. 8SM — Create contact list of Technical Working Group • A list of local, regional, state and nation -wide contacts to establish a pool of expertise to engage when required during the initiative. Federal, State, Regional or local specialists (Environmental, legal, transportation, water, planning, etc ?) who will remain informed about the Strategic Planning Process and advise (upon request) the various stakeholder groups of this project. This will be a non- voting group in this planning process. Requests to members of this group will be coordinated via the team leader to the project manager to the TAG. 10SM - Inventory of employers, businesses, educational services • A major list of Santa Maria key employers, businesses, education institutions, social services and other key entities for contact, review and analysis and input to EIA, FIA Phase 1: Assessment (June 2018 — January 2019) 12SM — Initial Site Visit The beginning of the Assessment Phase will consist of a initial site visit to meeting with Santa Maria leaders to present the project plan and acquire preliminary thoughts and priorities. 13SM — Confirmation of EIA /FIA Plan and Schedule DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E • Meeting with Santa Maria leaders to establish a plan and schedule for the collection of information and preparation of the EIA /FIA. 15SM - Stakeholder Interviews VE will acquire Santa Maria stakeholder input via in- person or phone interviews conducted to clarify understanding or expand on input received during the Phase 1 and Phase 2 planning work. We will adhere to privacy laws and aggregate results to post for the public view. 17- Community Readiness for FIA, EIA The community readiness assessment framework will include the following components. Santa Maria will be included in the region -wide analysis. 1. Regional Collaboration: Meaningful & sustainable grass -roots collaboration across public, private, non- profit and traditional political boundaries 2. Leadership Excellence: Empowers proactive leadership to take ownership of their economy; grows leaders with accountability, authority, legitimacy & transparency 3. Change Management: Adopts the eight steps critical to managing change that enables the region to more effectively participate and compete in the global economy 4. Balanced Approach: Integrates economic development, education & workforce development assets with the private sector to build effective knowledge based economic, human capital & quality of place centers of excellence 5. Asset Based Approach: Identify, connect and leverage tangible and intangible assets to sustainably grow and transform the regional economy 6. Measurable Outcomes: Employs measurable benchmarks, goals and strategies which transform the region through measurable outcomes 7. Innovation & Entrepreneurship: Builds innovation ecosystems that create a lasting regional climate of entrepreneurship, risk taking and innovation 8. Life Cycle Finance: Provides access to a life cycle of equity and debt financing for regional public, private and non - profit ventures 9. Regional Brand Promise: Defines, creates, communicates and delivers on a clear brand promise that promotes & sustains regional competitive advantages 10. Regional Transformation Mindset: Sustains commitment to CED as a journey that is a marathon not a sprint, transformative not incremental. The readiness assessment is more than a report card. It is a useful tool to provide a baseline of information that informs the strategic planning milestones in Phase 2. 16SM - Economic Impact Analysis (EIA) The Santa Maria FIA will be a competitive economic baseline understanding is a critical analysis for a successful economic development strategy, including: 9 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E a. The business composition, b. Up and downstream suppliers to the nuclear plant, c. Employment, workforce, labor costs, availability and capability, d. Business and transportation infrastructure, e. Tax structure, f. Regional economic sectors, g. County and community competitiveness relative to, L Land costs, development costs, housing cost, labor costs, ii. Business, economic development and land use policies, iii. Market access, iv. Business and transportation infrastructure, v. Economic development organizational capacity, vi. Economic development funding on a local, county, and regional basis. 19SM - Regional Fiscal Impact Analysis (FIA) The Santa Maria FIA fiscal impact analysis will be conducted so that each government entity (including school districts) now benefiting from the tax revenues can plan for the impending changes to their tax revenue streams. All of these estimated impacts would be presented for each geographic area. 21- Community Roles, Typology • Not every community wishes to grow, be a manufacturing center, be an environmentally sensitive and protected limited growth locale or be a historic /cultural center. Indigenous and man -made resources along with cultural sensitivities and heritage play a distinct and meaning role in how a community may change, grow and define itself. • Successful economic development for these communities requires recognition of these differences and a compatible support program for how each of these different types of communities can be served by their own vision for accommodating growth and community needs. The VE research team will develop a series of community types, identify their defining characteristics and present how each type may be supported via an economic development initiative that will support their community vision for it's future. 24SM - Draft EIA /FIA ® Prepare a draft report detailing the results of the economic impact studies as developed. 26SM - Phase 1 Final Report — Santa Maria The Phase 1 Final report will provide a Santa Maria summary of all the work completed in Phase 1 with conclusions and recommendations for it use in Phase 2, strategy development. 27/28/29- Leadership Training — Capacity Building ® This provides a bridge between the Phase 1 Economic Impact Analysis and the Strategic Planning in Phase 2. The purpose of this milestone training is to establish a solid and clear understanding of the research and information from Phase 1 and building an understanding of the Phase 2 work plan and the roles and responsibilities for all involved. During the training sessions, each of the committees (Leadership, Economic Development, Communications) will determine a meeting schedule, leadership positions and agenda development process that will govern the rest of the strategic planning process. 10 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E Phase 2 - Strategy Development (April 2019 — August 2020) Foundation Milestone - This milestone establishes the base by which the next three steps and the regional economic development strategy will be created. The following are the key components that will occur during this phase. 31- Foundation Milestone Event: This is a regional workshop event to report on the project progress, describe the work plan for this milestone, engage the a2endees through input exercises to increase knowledge and participation. Identification of issues of challenge and opportunity: Through facilitated meetings, individual interviews and the conclusions of the community readiness assessment a set of priority issues facing the region's economic future are determined. In addition, the areas of opportunity are identified that may have been pursued and just not realized. The concepts, themes and data collected inform the region's statement of current reality, vision statement, performance metrics and goals framework. 33- Creation of a Current Reality Statement: This statement defines the motivating factors in the region to begin a transformation process. 39- Creation of a Vision Statement: It describes the desired future state and includes what makes the region special and unique in terms the community understands. 32- Regional Benchmark Report: Benchmarking is done to provide a point in @me analysis of the economy. It uses a number of metrics from reliable and readily available sources. The review of the data includes, at a minimum, a one - decade trend review and comparison to state and national trends. The benchmark report will be an outcome of Phase 1. 40- Economic Goal Setting: Using the economic benchmarking data and the issues of challenge and opportunity regional leaders will prepare a set of S and 10 year goals. In addition to the base metrics used in the benchmarking, regionally unique metrics and priorities are benchmarked and goals set. During the goal setting process, it is critically important that review and verification is done to make sure projections are reasonable but still reflect the vision. The final step in the goal setting process is to take the job creation goals and disperse them into high wage, average wage and wage improvement categories. 43- Recruitment Plan: The four - milestone framework is designed to be used in the context of a regional community economic development initiative. An initiative is a movement or campaign involving hundreds of community leaders focusing on the improvement of their economy. Recruitment of representation and participation reflecting the community and regional economy is important. 44- Foundation Milestone Summary Report: This milestone report will provide a baseline or starting point for the initiative including a definition of the current state, an economic benchmark, a qualitative and quantitative vision of the future, a plan to expand participation to target audiences and the kickoff of the work group structure to engage leaders to build ownership in the plan. 11 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E Discovery Milestone This milestone explores what makes the region unique and categorizes tangible and intangible assets that are in their control. The discovery is more than an inventory of regional indigenous resources; it includes the creation of leverage strategies for each asset to achieve the community economic development goals. 45- Discovery Milestone Event: This is a regional workshop event to report on the Foundation Milestone, describe the work plan for this milestone, engage the group through input exercises and increase knowledge and participation. 48SM - Indigenous Resource Asset Mapping: Asset mapping sessions are conducted in open community sessions to uncover as many assets as possible and generate increased knowledge of what is available in the region. Assets are mapped in nine categories; natural, human /skills, knowledge, cultural /historic, geographic, excellence, infrastructure, government and innovation. 49- Asset Development: Each asset is then developed by using the following questions; What is the regions industry relationship? How can the resource be leveraged? What is the value of the leverage? Who will benefit from the leverage? What resources are missing to fully leverage the asset? 50SM- Launch of Project Working Group (1): If short term opportunities that support the initiative objectives are uncovered a Project Working Group may be established and empowered to complete a defined task(s) surrounding the opportunity. Connect Milestone This milestone examines the information obtained in the Discovery Milestone. Examination includes analysis and prioritization of regional assets and targeting of the highest value niche markets and business opportunities. In addition to immediately identified assets and opportunities, the Connect Milestone consists of further exploration of leverage strategies and connection of resources. 53- Verification of Targeted Industry Clusters: Using the information obtained in the Discovery phase the current priority clusters will be analyzed to identify niche industry sectors (Tourism to Experienced Based Tourism, Agriculture to Local Food Systems). Through an analysis of regional assets, overall marketing a2rac @veness and potential to help reach the regional goals, a group of high potential targeted industry clusters are determined that will have the highest probability to address the DCPP closure impact. 55- Prioritization of Assets and Opportunities: Through a disciplined analysis process the highest priority assets are assessed in relationship to the region's industry clusters. 56- Business Opportunity Analysis: The mapping exercise and analysis will identify a number of leading business opportunities that show the greatest promise to address the challenges and achieve the initiative goals. 57- Connect Milestone Event: This is a regional workshop event to report on the Discovery Milestone, describe the work plan for this milestone, engage the community "connect the dot" input exercises and increase knowledge and participation. 12 DocuSign Envelope ID: C4078508-171A-418F-813A-F7B9707E3B4E 61- Refinement of the Goals Established in the Foundation Milestone: The completion of the asset mapping and business opportunity analysis will initiate a review and potential adjustment of the initially defined regional metrics and goals. 63SM - Support of Project Working Group (1): Again, if short term opportunities that support the initiative objectives are uncovered a Project Working Group may be established and empowered to complete a defined task(s) surrounding the opportunity. Strategy Milestone This final step in the milestone process correlates all information obtained, priorities determined and actions taken. This also consists of lessons learned and the identification of the next steps in the implementation phase. The Strategy Milestone is not intended to prepare a report to "sit on the shelf', but rather it is a report by the leadership team to the community highlighting the path to prosperity. The community report will include at minimum the following components. 66- Multi- jurisdictional initiatives 67- Community goal and metric setting connected to the regional goals 68- Implementation plan 69- Phasing strategy 70- Budget plan 71- Collaborative funding plan 72- Governance and implementation framework 75- Integration of the EVC Dashboard to the strategic plan, metrics and goals 78- S.M.A.R. T Strategic plan and evaluation plan 77- Strategic Plan Celebration. The final milestone event is a celebration of the work completed and mobilizes broader community support around the implementation phase. The event will also emphasize the short -term wins already realized, resources acquired and how more people can get engaged. This is a very thematic event that reinforces the Shared Ownership Plan priorities and objectives. In Region Schedule /Visits VE Alliance members will be working in the region 22 out of the 24 -month term of the project. The EVC project manager will assist VE Alliance members in coordination meeting, workshops and other gatherings. Phase 2 Final Report — Santa Maria The Phase 2 Final report will provide Santa Maria a summary of all the work completed in Phase 2 with conclusions and recommendations for it use in Phase 3, implementation. 13 DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E EXHIBIT C TIMELINE Page 8 of 9 mass iii ■iS ■ ei ' ' ■■ C e■ C !'�O�e ■■■ ■ B S� e i ;■iS ■ ' S ' i ■i / ■� .; � ■eim a ■i nHeHee : C C ° C C C; / d; ' SSi■S.■Ni'i S' ■■ C =o / r S i SS ■C ■ � ;S ;�uC;iii S n SE S■ . . a ON ■ . . . on no �i C.■ ... IN S ■■ � ■ ; /ii SS // � C � � ■ Cie' ■ ■ ■e ■ nS U ■� a ■/ / / S■ ■ e ■ iii■ S■ ■.. / S •� ■ ■ii■ SS 9 C � C ,e ' CnC; i ' C i S ;S � S ; ■ n'Si ■ i e nSSC ' ■' ; ; ; ;; noom In I ON 1111111!11 I mills ' ieG ' ■Gen loss i'■u; ■ /e . �; ■n!�n�■ ■ / /e ■ ■.■ u ■. C � ■�■■ ■e■e N N ' Cnn n �C ■; S�� ■S ■ _ / S ;■ ; ■ ■ ueeun ■■ �; ■ ;■S.NmS; ;N■mC N nun r■r r nCCc�C� an goal N ;; ^w N� uCi iiii r n SCCC'CCm ; 1 I /nn ' iSS�n0 ■ Nee 'C • e■•r / ■ n /■n■ p HH;;■ C ./.0 S S. ' ' n e •i•, �, n N .nn I m ui C C C' /r �S� CS N �e■ ■/�S N .S■S�ln� I Noun lolls • .'�SSSSS " n/ e'f C MEN unne ■ n ■.n WOU ■nom CSS.:S ;; ■��,/ i■ MINI U 1S �r iS NSS ■ • n// ■ r/ i n rim �IIN DocuSign Envelope ID: C4078508- 171A- 418F- 813A- F7B9707E3B4E BXHIIBIT D EVC DIABLO CANYON PROJECT ACCOUNT OBLIGATIONS Page 9 of 9