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| CITY COUNCIL AGENDA ITEM NO. 20
Meeting Date: February 25, 2003
Subject/Title: Authorize the City Manager to execute a professional services agreement not
to exceed $41,500 plus a 10% contingency with Manex to prepare a Brentwood Manufacturing Attraction Strategic Plan.
Submitted by: Howard Sword, Economic Development Director
Approved by: John Stevenson, City Manager
Authorize the City Manager to execute a professional services agreement not to exceed $41,500 plus a 10% contingency with Manex to prepare a Brentwood Manufacturing Attraction Strategic Plan.
City Council approved a contract containing the same scope of work with Sam Driggers, a consultant, on October 22, 2002.
City continued this item to February 11, 2003 to their meeting on February 25, 2003.
The City of Brentwood’s Economic Development Department has focused on research, planning, project development, approval and financial assistance efforts during the past three and on half years.
One of the primary challenges facing our current economic development efforts is the absorption of the flex –tech / office space under construction. Most of this space is being built as speculative development and tenants must be attracted to occupy the space. These tenants, as identified in our Economic Development Strategic Plan adopted by the City Council in July, 1991, will tend to be smaller companies or divisions of larger companies that will be attracted to Brentwood because of the sub-region’s large trained, educated, and vertically integrated labor base, relatively affordable housing and work space, and the generally high standard of living. A target group of perspective businesses are companies that rely on manufacturing a product in order to justify their real estate costs of doing business and need our available labor base to further their objectives.
This effort to interest, recruit and site manufacturing firms is a fundamental task identified in the City’s Economic Development Strategic Plan to begin to move Brentwood into the “Basic Economy”. We are currently fortunate to be absorbing the majority of the sub-regional pent-up demand for retail goods and professional services which probably will absorb in excess of two million square feet of space in the next twenty-four months. These goods and services are very beneficial to our residents because of their convenience, not having to travel long distances on the regional roads and providing a substantial contribution to the City’s General Fund through sales tax revenue. They are also important to “Basic Economy” employers interested in the area because their businesses need access to these commodities. These goods and services, however, are primarily in the “Local Serving” category, do not generally provide a substantial number of high paying jobs and are restricted in growth to demand generated by local consumption. The “Basic Economy”, in contrast, generally provides a broader range of better paying jobs and because it relies on business conducted regionally, nationally and inter-nationally is not restricted in growth by only sub-regional demand.
Brentwood’s ability to recruit and attract “Basic Economy” employers will, without a doubt, be challenging. We are all aware that an inherent weakness in are regional location is transportation access. It is easily predictable, with no particular effort or research, to determine that companies with large scale distribution requirements will not be in the targeted industrial sectors. There are companies, however, that do not have large scale distribution requirements from either a raw material or finished product perspective. There are other companies, however, that will be very interested and attracted in our substantial educated, trained and vertically integrated workforce. We must understand the City’s situation in the all various considerations that manufacturers in different industrial sectors contemplate when site location decisions are made. We will then be much better positioned to efficiently identify and recruit businesses in industrial sectors that can benefit from our strengths and are not adversely affected by our weaknesses.
The scope of work contained in the recommended contract will accomplish the following objectives.
Provide a strategic plan to interest, recruit and site manufacturing firms in Brentwood.
Increase awareness within the Bay Area manufacturing community as to the cost competitiveness and other advantages of a Brentwood location.
Provide tools for accomplishing this mission.
The contract will achieve these objective through accomplishing the following tasks.
Recommend industrial sectors (using SIC codes) and specific companies for an initial attraction campaign and assist with initial contacts of targeted companies.
Conduct a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis to aid in identifying potential target industries and assist with the crafting of a marketing campaign.
Assist in the development and implementation of a Bay Area manufacturing survey, targeting firms within selected industrial sectors. This will serve as a barometer for issues and the initial contact for potential relocation clients.
Identify and package various business incentives available to manufacturers seeking to relocate to Brentwood.
Identify, recommend and assist in the development of marketing strategies and tools.
Submit a final report.
This $41,500 contract will be charged to our $100,000 Inter-Regional Partnership Grant for Business Attraction.
Exhibit A – Inter-Regional Partnership Grant
Exhibit B – Scope of Work
Exhibit C – Acceptance Letter
Exhibit D – Agreement for Professional Consultant Services
AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES
This Agreement, made and entered into this 12th day of February 2003, by and between the CITY OF BRENTWOOD municipal corporation existing under the laws of the State of California, hereinafter referred to as “CITY”, and Manex, with offices at 48001 Fremont Blvd. Fremont, California, hereinafter referred to as “CONSULTANT”.
A. CITY desires certain professional consultant services hereinafter described.
B. CITY desires to engage CONSULTANT to provide these services by reason of its qualifications and experience for performing such services and CONSULTANT has offered to provide the required services on the terms and in the manner set forth herein.
NOW, THEREFORE, IT IS AGREED as follows:
SECTION 1 – SCOPE OF SERVICES
The scope of services to be performed by CONSULTANT under this agreement is as described in Consultant’s proposal, attached hereto as Exhibit A and made a part hereof.
SECTION 2 – DUTIES OF CONSULTANT
CONSULTANT shall be responsible for the professional quality, technical accuracy and coordination of all work furnished by CONSULTANT under this agreement. CONSULTANT shall, without additional compensation, correct or revise any errors or deficiencies in its work.
CONSULTANT represents that it is qualified to furnish the services described under this agreement.
CONSULTANT shall be responsible for employing or engaging all persons necessary to perform the services of CONSULTANT.
It is understood that Jones & Stokes will be the designated representative providing services to the City and this designated representative shall not be replaced without the City’s approval.
SECTION 3 – DUTIES OF CITY
CITY shall provide pertinent information regarding its requirements for the project.
CITY shall examine documents submitted by CONSULTANT and shall render decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of CONSULTANT’S work.
SECTION 4 – TERM
The services to be performed under this agreement shall commence on September 16, 2002 and be completed on September 16, 2002, as set forth in Exhibit A.
SECTION 5 – PAYMENT
Payment shall be made by CITY only for services rendered and upon submission of a payment request and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONSULTANT a fee not to exceed $41,500 which represent the proposed fee and a 10% contingency fee.
SECTION 6 – TERMINATION
Without limitation to such rights or remedies as CITY shall otherwise have by law, CITY shall have the right to terminate this agreement or suspend work on the Project for any reason upon ten (10) days’ written notice to CONSULTANT. CONSULTANT agrees to cease all work under this agreement upon receipt of said written notice.
Upon termination and upon CITY’S payment of the amount required to be paid, documents become the property of CITY, and CONSULTANT shall transfer them to CITY upon request without additional compensation. Upon termination or expiration of this agreement, the obligations of the parties shall cease, save and except from those provided under Sections 7,8,10, 11, 12, 14, 15, and 16.
SECTION 7 – OWNERSHIP OF DOCUMENTS
All documents prepared by CONSULTANT in the performance of this agreement, although instruments of professional service, are and shall be the property of CITY, whether the project for which they are made is executed or not.
SECTION 8 - CONFIDENTIALITY
All reports and documents prepared by CONSULTANT in connection with the performance of this agreement are confidential until released by CITY to the public. CONSULTANT shall not make any such documents or information available to any individual or organization not employed by CONSULTANT or CITY without the written consent of CITY before any such release.
SECTION 9 – INTEREST OF CONSULTANT
CONSULTANT covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services under this agreement.
SECTION 10 – CONSULTANT’S STATUS
It is expressly agreed that in the performance of the professional services required under this agreement, CONSULTANT shall at all times be considered an independent contractor as defined in Labor Code Section 3353, under control of the CITY as to the result of the work but not the means by which the result is accomplished. Nothing herein shall be construed to make CONSULTANT an agent or employee of CITY while providing services under this agreement.
SECTION 11 – INDEMNITY
CONSULTANT agrees to hold harmless and indemnify CITY, its officers and employees from and against any and all claims, loss, liability, damage, and expense arising from the negligent, or claimed negligent, performance of this agreement by CONSULTANT, including claims, loss, liability, damage, and expense caused or claimed to be caused by passive negligence of CITY, its officers or employees. CONSULTANT agrees to defend CITY, its officers or employees against any such claims. This provision does not apply to claims, loss, liability or damage or expense arising from the sole negligence, willful misconduct, or active negligence of CITY.
SECTION 12 – INSURANCE
The CONSULTANT shall provide and maintain:
A. Commercial General Liability Insurance, occurrence form, with a limit of not less than $1,000,000 each occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or be no less than two (2) times the occurrence limit.
B. Automobile Liability Insurance, occurrence form, with a limit of not less than $5000,000.00 each occurrence. Such insurance shall include coverage for owned, hired, and non-owned automobiles.
C. No need for errors and omission for this contract or limit to the value of the contract.
D. Workers Compensation in at least the minimum statutory limits.
E. General Provisions for all insurance. All insurance shall:
1. Include the City of Brentwood, its elected and appointed officers, employees, and volunteers as additional insureds with respect to this Agreement and the performance of services in this Agreement. The coverage shall contain no special limitations on the scope of its protection to the above-designated insureds.
2. Be primary with respect to any insurance or self-insurance programs of City, its officers, employees, and volunteers.
3. Be evidenced, prior to commencement of services, by properly executed policy endorsements in addition to a certificate of insurance.
4. No changes in insurance may be made without the written approval of the City Attorney's Office.
SECTION 13 - NONASSIGNABILITY
Personal Services of Consultant: Both parities hereto recognize that this agreement is for the personal services of CONSULTANT and cannot be transferred, assigned, or subcontracted by CONSULTANT without the prior written consent of CITY.
SECTION 14 - RELIANCE UPON PROFESSIONAL SKILL OF CONSULTANT
It is mutually understood and agreed by and between the parties hereto that CONSULTANT is skilled in the professional calling necessary to perform the work agreed to be done under this agreement and that CITY relies upon the skill of CONSULTANT to do and perform the work in the most skillful manner, and CONSULTANT agrees to thus perform the work. The acceptance of CONSULTANT'S work by CITY does not operate as a release of consultant from said obligation.
SECTION 15 - WAIVERS
The waiver by either party of any breach or violation of any term, covenant, or condition of this agreement or of any provisions of any ordinance or law shall not be deemed to be a waiver of such term, covenant, condition, ordinance or law or of any subsequent breach or violation of same or of any other term, covenant, condition, ordinance or law or of any subsequent breach or violation of the same or of any other term, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money, which may become due hereunder shall not be deeded to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this agreement of any applicable law or ordinance.
SECTION 16 - COSTS AND ATTORNEYS FEES
Attorney fees in an amount not exceeding $85 per hour per attorney, and in total amount not exceeding $5000, shall be recoverable as costs (by the filing of a cost bill) by the prevailing party in any action or actions to enforce the provisions of the agreement. The above $5000 limit is the total of attorneys’ fees recoverable whether in the trial court, appellate court, or otherwise, and regardless of the number of attorneys, trials, appeals, or actions. It is the intent of this agreement that neither party shall have to pay the other more than $5000 for attorneys’ fees arising out of an action, or actions to enforce the provisions of this agreement.
SECTION 17 - NON-DISCRIMINATION
CONSULTANT warrants that is an Equal Opportunity Employer and shall comply with applicable regulations governing equal employment opportunity. Neither CONSULTANT nor any of its subcontractors shall discriminate in the employment of any person because of race, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment and Housing Act.
SECTION 18 - MEDIATION
Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation. The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties; in the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the California State Board of Mediation and Conciliation, or other agreed-upon service. The mediator shall be selected by a "blindfolded" process.
The cost of mediation shall be borne equally by the parties. Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator shall last until agreement is reached by the parties but not more than 60 days, unless the maximum time is extended by the parties.
SECTION 19 - ARBITRATION
After mediation above, and upon agreement of the parties, any dispute or claim arising out of or relating to this agreement may be settled by arbitration in accordance with the Construction Industry Rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The costs of arbitration shall be borne equally by the parties.
SECTION 20 - LITIGATION
CONSULTANT shall testify at CITY'S request if litigation is brought against CITY in connection with CONSULTANT'S services under this agreement. Unless the action is brought by CONSULTANT, or is based upon CONSULTANT'S wrongdoing, CITY shall compensate CONSULTANT for preparation for testimony, testimony, and travel at CONSULTANT'S standard hourly rates at the time of actual testimony.
SECTION 21 - NOTICES
All notices hereunder shall be given in writing and mailed, postage prepaid, addressed as follows:
City of Brentwood
150 City Park Way
Brentwood, CA 94513
To CONSULTANT: Manex
48001 Fremont Blvd.
Fremont, CA 9453
SECTION 22 – AGREEMENT CONTAINS ALL
This document represents the entire and integrated agreement between CITY and CONSULTANT and supersedes all prior negotiations, representations, and agreements, either written or oral.
This document may be amended only by written instrument, signed by both CITY and CONSULTANT
SECTION 23 – GOVERNING LAW
This agreement shall be governed by the laws of the State of California.
IN WITNESS WHEREOF, CITY and CONSULTANT have executed this agreement the day and year first above written.
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
Fax (925) 516-5441