One Gateway Plaza
Los Ange les, CA 90012-2952
213.922.2000 Tel
metro. net
CONSTRUCTION COMMITTEE
EXECUTIVE MANAGEMENT COMMITTEE
January 15, 2015
SUBJECT:
CRENSHAW/LAX PILOT BUSINESS SOLUTION CENTER (BSC} and
METRO'S PILOT BUSINESS INTERRUPTION FUND (BIF} MONTHLY
REPORT
ACTION:
RECEIVE AND FILE STATUS REPORT
RECOMMENDATION
Receive and file monthly status report on the implementation of the Crenshaw/LAX
Transit Project Business Solution Center and Metro's Pilot Business Interruption Fund.
ISSUE
In July 2014, Metro's Board issued Motion 79 (Attachment A), that authorized the CEO
to establish a Pilot Metro Business Solution Center (BSC) along the Crenshaw Corridor
(Corridor). Thereafter, the Board of Directors issued Motion 57 (Attachment B) that
authorized the CEO to establish a pilot program for a special Business Interruption
Fund (BIF) for mom and pop businesses along the Crenshaw Line, Little Tokyo area
along the Regional Connector and Phase I of the Purple Line Extension. The motions
require monthly updates to the Construction Committee.
DISCUSSION
Since the adoption of the aforementioned Board motions, staff has completed a series
of actions leading to the implementation and "soft" launch of the BSC. Also,
procurement activities have been initiated for the execution of a contract with Pacific
Coast Regional Small Development Corporation to serve as the BIF fund administrator.
(1) Pilot Business Solution Center Update
Between November and December, Metro staff worked in collaboration with the BSC
Consultant, Del Richardson and Associates (ORA), to implement and complete a series
of activities and milestones for the operation and "soft" launch of the BSC within 30
days of the NTP. Overall activities included: formulating, reviewing and finalizing the
BSC Operating and Staffing Plan including the Communication and Outreach Plan in
addition to identifying necessary activities for the development and implementation of
the BSC website, print collateral and branding.
In keeping with the schedule of deliverables, the BSC launched and opened Friday,
December 19, 2014 . The opening was "soft" launch that provided the opportunity for the
BSC staff to get the doors of the center open and begin to engage and meet the local
business community. The opening was marked by a focused communications and
outreach strategy that consisted of BSC staff conducting on the ground canvassing and
outreach to the business community between the areas of 48th and 60th Streets; such
focused efforts included:
1. Communications I Media
• The Source
• Metro's CEO Daily Brief
• E-blast to more than 200 businesses and business resource partners
2. Opening Activities
• BSC outreach team comprised of 9 representatives
• Outreach and canvassing between 48th and 60th
• Focus on intake process; taking business owners through the initial intake
process for follow-up and one-on-one assessment appointments within 72
hours (business hrs.)
3. Opening Stats
• Twenty six (26) businesses completed BSC Intake Forms
•
6 walk-ins to the BSC (represented area north of 48th Street)
•
20 visited via canvassing.
Over the course the next 30 days, Metro and the Contractor's team will continue to
advance efforts, including launch the web-enabled services in preparation for the BSC
open house in January 2015.
(2) Pilot Business Interruption Fund Update
In November 2014, Metro Board of Directors approved the approach to outsource fund
administration to an external Community Development Financial Institution (CDFI) and
authorized the CEO to enter into negotiations for a contract with Pacific Coast Regional
Small Business Development Corporation (PCR).
Metro staff immediately entered into negotiations with PCR on the required activities
and milestones, and a Limited Notice to Proceed was issued to PCR on December 4,
2014. As of date, staff continues to work in collaboration with PCR on the draft BIF
Administrative Guidelines, the BIF application process including the overall outreach
and communication strategy.
In addition to advancing efforts with PCR, efforts have been advanced for the retention
of the Business Loss Claims Management firm to provide advisory services in the
development of the final BIF Administrative Guidelines, in particular to ensure the
established program and guidelines do not reduce or waive insurance coverage
afforded to Metro by our Design Build Contractors for insurable business interruption
Crenshaw/LAX Pilot Business Solution Center and Pilot Business Interruption Fund Update
Page 2
losses.
Metro staff will continue to advance efforts with PCR including the identified Business
Loss Claims Management consultant in preparation for the BIF launch in February
2015.
Efforts are also underway to hire a Director of the BIF.
NEXT STEPS
Metro staff will continue to advance efforts in preparation for the Crenshaw/LAX BSC
open house in January 2015. In addition , ongoing procurement activities will be
executed for the BIF with the objective of entering into a formal contract with PCR by
January 4, 2015 including finalizing the BIF Administrative Guidelines by mid- January
2015 and launching the BIF program by February 2015 .
ATTACHMENTS
A.
B.
C.
D.
Motion 79
Motion 57
BSC Status Report
BIF Status Report
Prepared by:
Shalonda Baldwin, Deputy Executive Officer of Project Management
Vendor/Contract Management, (213) 922-4488
Crenshaw/LAX Pilot Business Solution Center and Pilot Business Interruption Fund Update
Page 3
~J)..J
teiJh;Wiggins,~
Executive Director, Vendor/Contract Management
ArthurT. Leahy
Chief Executive Officer
Crenshaw/LAX Pilot Business Solution Center and Pilot Business Interruption Fund Update
Page 4
ATTACHMENT A
Motion by Supervisor Mark Ridley-Thomas, Mayor Eric Garcetti and Director
Jacquelyn Dupont-Walker
Implementation of a Pilot Business Solution Center for the Crenshaw/LAX Line
Relates to Item 79
July 24, 2014
Since construction began on the Crenshaw/LAX Line Project (the Project) earlier
this year, doing business on the Crenshaw Corridor (the Corridor) has become more
challenging for businesses and patrons. Many businesses are already experiencing
significant impacts created by construction activities, specifically at the intersections of
Crenshaw Boulevard and Martin Luther King Jr. Boulevard and Exposition Boulevard
where work is underway to lay the groundwork for future underground stations.
Businesses between 48th Street and 60th Street, where the line will run at-grade, are
also anticipated to face significant challenges when construction begins on that
segment.
Under both Federal and State law, Metro is prevented from providing direct cash
subsidies to businesses unless access to the business is denied due to construction
impacts. While this has not technically been the case on the Corridor, there is a clear
nexus between construction activities and reduced business activity, especially the
walk-in traffic that many of the retail businesses rely on .
In
April
2014,
Metro
retained
a
consultant
to
assess
and
provide
recommendations on how to address the economic impacts of construction activities on
small businesses on the Corridor. The consultant's report encourages the development
of a pilot Business Solution Center that would provide direct sector-specific technical
assistance to businesses along the Corridor to help them through construction activities.
Services that could be provided to businesses include financial planning and advice on
small business operations as well as dealing with municipal permits and regulations,
legal assistance, marketing and grant/loan application management. The consultant
specifically suggests that a pilot effort be established to provide proactive and hands-on
business assistance to support the over 100 businesses at the at-grade portion of the
Project between 48th and 60th Streets, as well as a walk-in location along the Corridor
for which businesses along the entire rail alignment can receive information, resources
and referrals .
The establishment of a Business Solution Center would meaningfully enhance
Metro's construction and external relations protocol. While serving as a relatively
nominal financial investment for Metro, it would go a long way in helping to build the
capacity of small businesses to survive the construction period and ultimately contribute
to a vibrant transit corridor upon completion of the Line. If the Metro Board wants to
pursue future funding measures to fully build out the system , it will be fundamental that
we demonstrate to local small businesses that we are a comm itted partner during
construction periods. This pilot Business Solution Center can serve as a model for such
an effort, and to do so, it is essential that Metro partner with a capable and well
established service provider to roll-out these services as quickly as possible.
Furthermore , it is consistent with Metro's Construction Impact Response Program
(CIRP) which was developed in response to construction on the Gold and Red Lines in
the 1990s. The CIRP program provided various forms of relief for businesses including
economic support and rapid response teams. These resources should also be made
available for the Crenshaw Corridor.
The pilot Business Solution Center would also complement Metro's other
ongoing efforts to address business' needs during construction. For example, Metro
continues to modify construction signage based on the feedback of surrounding
business' to highlight the names of businesses , parking locations and to clarify that
businesses
are
open
during
construction . In
addition , Metro
is finalizing
a
communications strategy to promote an "Eat, Shop and Play Local" campaign during
construction.
WE THEREFORE MOVE THAT THE BOARD OF DIRECTORS:
1. Receive and file the "Recommendations for a Pilot Metro Business Solution Center";
2. Authorize the CEO to immediately solicit proposals to establish a Pilot Metro
Business Services Center along the Crenshaw Corridor that includes a physical
presence with consistent staffing hours for the duration of the construction of the
Crenshaw/LAX Line, as well as a Business Solutions Outreach Strategy for the atgrade portion of the alignment on Crenshaw between 48th and 60th Streets and other
locations that are determined to be significantly impacted by construction activities ,
and authorize the CEO to execute a contract with the most responsive and qualified
bidder, with the objective of beginning operations by October 2014;
3. Direct the CEO to identify up to $250 ,000 and amend the current budget to fund the
initial year activities, with an overall project budget expected to be approximately
$1 ,000 ,000, to be included in future budgets for fiscal year 2016, 2017 and 2018 at
$250,000 per year;
4. Direct the CEO to report back in September on a plan to utilize existing Full-Time
Equivalent position(s) to staff the Business Solutions Center.
5. Direct the CEO to incorporate the following elements into the Pilot Business Solution
Center Program:
a. A single point-of-contact or case management approach for each business;
and
b. A 72 hour quick response plan .
6. Direct the CEO to establish an additional mitigation menu and criteria based on
MTA's previous Construction Impact Response Program that includes:
a. Marketing campaigns for impacted businesses ;
b. Rent and mortgage subsidies to businesses;
c. A low-interest loan fund that is accessible to small and micro-businesses;
d. Report back to the Board in September with funding recommendations;
7. Direct the CEO to report back on a Post-Construction Fac;ade Improvement Program
in conjunction with the approved Design-Build Contract for the Crenshaw/LAX
Transit Line;
8. Direct the CEO to report back on the feasibility of establishing Memorandums of
Understanding with local business and community stakeholder groups, as has been
done in Denver, Colorado, to ensure that we are maximizing community involvement
and engagement as it relates to construction activities;
9. Direct the Diversity and Economic Opportunity Department to manage and oversee
the Business Solution Center Project; and
10. Provide quarterly updates to the Executive Management and Construction
Committees on the Pilot Business Solution Center and the "Eat, Shop and Play
Local" campaign beginning in September 2014.
Amendment to Item 57
ATTACHMENT B
Motion by Directors Molina, Dupont-Walker, Ridley-Thomas and
Garcetti
Business Interruption Fund
September 18, 2014
WE, THEREFORE, MOVE that the Board direct the Chief
Executive Officer to:
1. Establish a pilot program for a special Business Interruption
Fund for mom and pop businesses located along the Crenshaw
Line, within the Little Tokyo area along the Regional Connector,
and Phase I of the Purple Line Extension immediately.
2. Define mom and pop businesses as those meeting the following
criteria:
a. Having 25 employees or fewer,
b. A minimal operational history of two years;
c. Being in good standing with local, state and federal tax
requirements; and
d. Able to produce financial records (i.e. gross receipts.
business license information, pay roll taxes and other
pertinent financial information) demonstrating the- loss
of business revenue directly related to the period of
construction disruption.
3. Conduct a baseline survey of all businesses within the project
areas.
4. Identify and designate $10,000,000 of Metro funds annually to
be used for the implementation of the Business Interruption
Fund. Funds shall be distributed through the projecfs
administration and/or respective Business Solution Center.
5. Each business should be eligible for a maximum of $50,000
annually, not to exceed 60 percent of their annual business
revenue loss.
6. Participation in the program would release MTA and the general
contractor from further liability claims for business loss unrelated to
specific incidents of damage and would be voluntary.
7. Direct the Chief Executive Officer to work with Los Angeles
County and local cities to seek all appropriate legislation that
would temporarily reduce or waive taxes and fees imposed on
impacted
businesses
during
transit-related
construction
activities and work with the Los Angeles Countv Assessor's
Office
to
immediately
initiate
outreach
activities
to
businesses impacted by transit-related construction activities
in order to inform them of the Assessor's Office Proposition
8/Decline-in-Value Review process.
s. Report back to Construction Committee monthly, beginning in
October, with an implementation plan and report back to the
Board of Directors in September 2015 with an evaluation of
the program including utitization levels and recommendations
for program modification.
Los Angeles County
Metropolitan Transportation Authority
One Gateway Plaza
Los Angeles , CA 90012-2952
213 .922 .2000 Tel
metro. net
Metro
ATTACHMENT C
Business Solution Center (BSC) Status Report
As of December 22, 2014
Metro's BSC "soft" launch Friday, December 19, 2014
1.0 CONSULTANT TEAM
Del Richardson & Associates, Inc. (DRA) was awarded a 2 year with 2 one-year options contract
1
in October 2014 to operate the Metro pilot BSC for the Crenshaw/LAX Transit Corridor. The
team includes Vermont Slauson Economic Development Corporation, Los Angeles Urban
League, and Turning Point Communication .
2.0 BSC DESCRIPTION/SCOPE
A team of five Case Management and three Outreach staff will provide hands-on case
management services and business assistance to small businesses along the Crenshaw Corridor
between 48th and 60th Street. Small businesses not immediately within the area of 48th and 60th
Street of the Corridor will also have access to the BSC for business and technical assistance.
Small businesses located between 48th and 60th Street will receive case management services
through the BSC case management staff, while those located beyond 48th and 60th Street will
receive case management services through referral of BSC case management staff to a BSC
Business Development Partner. DRA, has established a network of business development
partners that are committed to providing supplemental business and technical support and
assistance to small businesses referred through Metro's BSC.
BSC Access- Business owners will be able to access the BSC via walk-in locations and web:
•
The BSC main office will be co-located at the LA Urban League at
3450 Mount Vernon Drive, Los Angeles
•
The BSC satellite office will be at 510 South La Brea Avenue, Inglewood
•
Website access will also be available at metro.net/Crenshaw (under development)
3.0 BSC LAUNCH/OPENING ACTIVITIES
A. Opening Activities
•
•
BSC outreach team comprised of 9 representatives
Outreach and canvassing between 48th and 60th
•
Focus on intake process; taking business owners through the initial intake
process for follow-up and one-on-one assessment appointments within 72 hours
B. Opening Stats
•
1
Twenty six (26} businesses have completed BSC Intake Forms
•
6 walk-ins to the BSC
•
20 via canvassing
Contract is a not to exceed amount of $996,144 ($646,462 for the 2 year base period and $349,682 for the 2 one-year options).
4.0 MILESTONES COMPLETED
•
Notice to Proceed Issued- November 5, 2014
•
Project Kick-off Meeting- November 12, 2014
•
BSC Launch/Opening- December 19, 2014
5.0 UPCOMING MILESTONES
•
BSC Soft Opening (walk-in locations only)- December 19, 2014
•
BSC Open House (web access available)- January 2015 (date TBD}
Los Angeles County
Metropolitan Transportation Authority
One Ga teway Plaza
Los Angeles , CA 90012-2952
213 .922 .2000 Tel
metro.net
Metro
ATIACHMENTD
Business Interruption Fund (BIF) Status Report
As of December 22, 2014
Metro's BIF project team continues to work on the start-up activities for the implementation of
the BIF scheduled for February 15, 2015.
1.0 CONSULTANT TEAM
Pacific Coast Regional Small Business Development Corporation (PCR) was awarded a 2 year
with 2 one-year options contract in November 2014 to administer the Metro pilot BIF for the
Crenshaw/LAX Transit Corridor, Little Tokyo section of the Regional Connector, and the Purple
1
Line Extension Phase 1 Projects.
2.0 BIF DESCRIPTION/SCOPE
Metro wants mom and pop small businesses to continue to thrive throughout the construction
period. The establishment of the pilot BIF provides financial assistance to impacted businesses
through grants to cover operating expenses. PCR will provide grant administration in alignment
with Metro's BIF Administrative Guidelines. Serving as the BIF administrator PCR will perform
services such as: process BIF grant applications; determine business eligibility; develop process
and timeline for evaluation, selection and disbursement of grant funds; and provide
performance reports to Metro.
BIF Access- Business owners will be able to access the BIF via walk-in locations and web:
• The BIF main office will be at PCR's location :
3255 Wilshire Blvd, Suite 1051, Los Angeles
• Website access will also be available at pcrcorp.org (under development)
• Satellite support- General information and intake forms will also be readily available at
the designated Business Solutions Centers (i.e. Crenshaw/LAX, Little Tokyo)
3.0 MILESTONES COMPLETED
•
•
•
•
Introductory Meeting- November 17, 2014
Business Loss Claim Management Consultant RFP Issued- December 3, 2014
The consultant is needed to ensure the 8/F administration guidelines do not remove any
contractual liability by the design/build contractors.
Limited Notice to Proceed Issued to PCR- December 4, 2014
Business Loss Claim Consultant RFP Response Date- December 18, 2014
4.0 UPCOMING MILESTONES
•
•
•
•
•
1
Director, BIF (A Metro Position) Announcement Posted- December 29, 2014
Business Loss Claim Consultant Proposal Evaluations- January 2, 2015
PCR Contract Execution (complete formal audit, final negotiations) -January 4, 2015
Finalize BIF Administrative Guidelines -January 15, 2015
BIF Launch- February 15, 2015
Contract is a not to exceed amount of $1 ,800,000 ($900,000 for the 2 yea r base period and $900,000 for the 2 one-year options).