ACTION REQUESTED:
Title
Communication from the City Manager with a Request to Approve a GRANT AGREEMENT with THE BLOOMBERG FAMILY FOUNDATION, INC. Regarding the Creation of an INNOVATION TEAM and to Authorize the City Manager to Execute the Necessary Documents.
Body
BACKGROUND:
In October 2014, the City of Peoria applied to Bloomberg Philanthropies' "Innovation Delivery Grant" opportunity. In early December, the City was notified that it was one of twelve U.S. cities selected. The grant will pay for the creation of an "i-team" who will be charged with working with City administration, elected leaders and community stakeholders to create innovative strategies and solutions to Peoria's most pressing and complex issues.
As part of the application process, Peoria had to identify an initial problem which the team would address. The City's application focused on opportunities to utilize innovative solutions to address the Combined Sewer Overflows (CSOs). The CSO issue is the largest and most costly issue facing Peoria. Moreover, its complexity and breadth impact many of the other difficult issues facing Peoria. While the project is centered on water quality, the real problem is an aging infrastructure that serves as the foundation for the most challenging parts of Peoria. The combined sewer area is also the oldest section of the community and the section that struggles with crime, poverty and disinvestment. The Innovation Delivery approach can use the CSO issue as a platform for addressing other critical issues. An Innovation Team, driven by data and community engagement, can develop successful strategies that address multiple problems. Preventing overflows will cost tens of millions of dollars. That level of spending should improve more than just water quality. The i-team will be charged with working with other professionals and stakeholders to leverage funds dedicated to the CSO problem in a manner that best benefits the community. CSO is only the initial project; the i-team will work to identify and strategize on additional problems concurrently and subsequent to the CSO issue.
The Peoria i-team will consist of three employees: A Chief Innovation Officer and two Program Managers. The Bloomberg grant is for three years at $500,000 per year (for a total of $1,500,000). The funds cover the entire cost of the program: salaries, benefits, travel, training, equipment, materials, consultations, etc. There is a match of 1:3 that will require the City to contribute $500,000 in the third year (half of the match needs to be identified and secured by February 1, 2016). Schedule A of the attached grant agreement provides guidance on this match. Of note is the following: "Matched dollars are typically used for implementation costs associated with initiatives developed by the i-team" (p. 15). Therefore, if the i-team works to develop a solution involving the CSO issue, any funds expended on that solution would count towards the match. Staff has no concerns with meeting this requirement.
With Bloomberg's approval and under their direction, the City has already begun the process of advertising the open positions. It is hoped that the Chief Innovation Officer position will be filled by early March and the remainder of the team by the end of April.
The attached agreement is a draft agreement. Bloomberg Philanthropies continues to refine the legal language of the grant but has assured the City that any further changes will be minor and immaterial to the overall agreement. Staff will provide the Council with a final agreement prior to the Council meeting.
FINANCIAL IMPACT: The Bloomberg Family Foundation will pay the City up to $500,000 per year for three years. The funds will cover the entire cost of the i-team, including salary, benefits, supplies and training, as outlined in the grant agreement. A $500,000 local match will be required in year three.
NEIGHBORHOOD CONCERNS: Not applicable, however the i-team will be charged with working with neighborhoods and other stakeholders to develop solutions to community problems.
IMPACT IF APPROVED: The grant agreement will be approved and the i-team will be formed.
IMPACT IF DENIED: Staff would notify the Bloomberg Family Foundation that the City was refusing the grant.
ALTERNATIVES: None.
EEO CERTIFICATION NUMBER: Not applicable.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Invest in our infrastructure and transportation.
2. Support sustainability.
3. Reinvest in neighborhoods.
DEPARTMENT: City Manager's Office