HomeMy WebLinkAboutContracts & Agreements_28-1998_CCv0001.pdf AGREEMENT FOR CONSULTING SERVICES
THIS AGREEMENT is made and entered into this 2nd day of June, 1998 by and between
the City of Redlands hereinafter called "Client," and David id Taussig and Associates,Inc.,hereinafter
called "Consultant." Client and Consultant, in consideration of the mutual promises contained
herein, agree as follows:
ARTICLE I
TERM OF CONTRACT
Section 1.1 This Agreement shall become effective on the date first stated above, and
shall continue in effect until the earlier of(i)that day when the Consulting Services described herein
have been completed or(ii) if terminated, as provided in Article 6 below.
ARTICLE 11
SERVICES TO BE PERFORMED BY CONSULTANT
Section 2.1 Consultant shall perform professional services for Client and produce and
deliver work products to Client as described in the Scope of Work statement attached hereto as
Exhibit "A" and incorporated herein by this reference. Such professional services and work
products, as from time to time modified in accordance with Section 2.3 here-of, are collectively
referred to as the "Consulting Services,"
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Section 2.2 Consultant.shall determine the method, details and means of performing the
Consulting Services. Consultant may, at Consultant's sole expense, employ such assistance as it
deems necessary to perform the Consulting Services required by Client under this Agreement.
Consultant shall conduct research and arrive at conclusions with respect to its rendition of
information, advice,recommendation or counsel independent of the control and direction of Client.
other than normal contract monitoring.
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Section 2_3 Any proposed changes in the Consulting Services and corresponding
compensation to be paid to Consultant hereunder shall be submitted to the other party hereto, and
any such changes agreed to by the parties shall be reflected by -written amendment to Exhibit "A".
Section 2.4 Nothing in this Agreement shall give Consultant authority with respect to any
Client decision beyond the rendition of information, advice, recommendation or counsel.
Section 2.5 All documents,records,drawings,designs,electronic data files and data bases
and other materials prepared by Consultant pursuant to this Agreement shall become the property
of Client and shall be delivered to Client upon completion of the Consulting Services, or at such
earlier time as they may be available upon the request of Client.
ARTICLE III
COMPENSATION
Section 3.1 Client shall pay Consultant for its Consulting Services a professional fee
computed according to the Fee Schedule attached as Exhibit "B" hereto and incorporated herein by
this reference, which shall not exceed the total sum of$ 35,000.
Section 3.2 On or about the end of the second week of each month during which
Consulting Services are rendered hereunder, Consultant shall present to Client an invoice covering
the current Consulting Services performed pursuant to this Agreement and exhibits hereto. Such
invoices shall be paid by Client within forty-five (45) days of the date of each invoice. A 1.2%
charge may be imposed against accounts which are not paid within 45 days of the date of each
invoice.
Section 3.3 Records of Consultant's costs relating to (i) the Consulting Services
performed under this Agreement shall be kept at all times during this Agreement, and for six (6)
months after termination of this Agreement or the completion of the Consulting Services, whichever
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occurs later, and shall be available to Client or to Client's authorized representative at reasonable
intervals during normal business hours.
ARTICLE IV
OTHER OBLIGATIONS OF CONSULTANT
Section 4.1 Consultant shall perform the Consulting Services in accordance with Exhibit
"A." Should any errors caused by Consultant's negligence be found in such services or products,
Consultant shall correct them at no additional charge to Client by revising the services or work
products called for in Exhibit "A" to eliminate such errors.
Section 4.2 Consultant shall supply all tools and instrumentalities required to perform the
Consulting Services under this Agreement.
Section 4.3 Neither this Agreement, nor any duties or obligations described in this
Agreement may be assigned by Consultant without the prior written consent of Client. Any
assignment or attempted assignment without such prior written consent shall,at the option of Client,
result in the immediate termination of this Agreement. However, Consultant may subcontract
portions of the work to be performed hereunder to other persons or concerns provided Consultant
notifies Client of the name and address of said proposed subcontractor and Client either consents or
fails to resppnd to notification with respect to the use of any particular proposed subcontractor.
Section 4.4 In the performance of its Consulting Service hereunder, Consultant is, and
shall be deemed to be for all purposes, an independent contractor (and not an agent, officer,
employee or representative of Client) under any and all laws, whether existing or future.
Consultant is not authorized to make any representation, contract or conunitment in behalf of Client.
Section 4.5 Consultant shall defend,indemnify and hold Client harmless from and against
all obligations,losses,liabilities,damages,claims,attachments,executions,demands,actions and/or
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proceedings and all costs and expenses in connection therewith, including reasonable attorneys, fees,
arising out of or connected with the performance of Consultant's Consulting Services under this
Agreement, except as may arise from Client's willful misconduct or negligence.
ARTICLE V
OTHER OBLIGATIONS OF CLIENT
Section 5.1 Client shall comply with all reasonable requests of Consultant and provide
access to all documents in Client's possession that are reasonably necessary to the performance of
Consultant's duties under this Agreement.
Section 5.2 Client,public agencies,landowners,consultants and other parties dealing with
Client or involved in the subject development project referred to in Exhibit "A" will be famishing
to Consultant various data, reports, studies, computer printouts and other information and
representations as to the facts involved in the project which Client understands Consultant will be
using and relying upon in preparing the reports, studies, computer printouts and other work products
called for by Exhibit "A." Consultant shall not be obligated to establish or verify the accuracy of
the information furnished by or on behalf of Client, nor shall Consultant be responsible for the
impact or effect on its work product of the information furnished by or on behalf of Client, in the
event that such information is in error and therefore introduces error into Consultant's work products.
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Section 53
-,_ Client shall defend, indemnify and hold Consultant harmless from and
against all obligations, losses, liabilities, damages, claims , attachments, executions, demands,
actions and/or proceedings and all costs and expenses in connection therewith,including reasonable
attorneys'fees,arising out of or connected with the performance of Consultant's Consulting Services
under this Agreement, except as may arise from Consultant's willful misconduct or negligence.
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ARTICLE VI
TERMINATION OF AGREEMENT
-Section 6.1 This Agreement may be terminated by Client, without cause, upon ten (10)
days prior written notice to Consultant. Unless terminated as provided herein, this Agreement shall
continue in force until the Consulting Services set forth in Exhibit "A" have been fully and
completely performed and all proper invoices have been rendered and paid.
Section 6.2 Should either party default in the performance of this Agreement or materially
breach any of its provisions, the other party, at its option, may terminate this Agreement by giving
written notification to the defaulting party. Such termination shall be effective upon receipt by the
defaulting party,provided that the defaulting party shall be allowed ten (10)days in which to cure
any default following receipt of notice of same.
ARTICLE VII
GENERAL PROVISIONS
Section 7.1 Any notices to be given hereunder by either party to the other may be effected
either by personal delivery in writing or by mail. Mailed notices shall be addressed to the parties
at the addresses set forth in this Section 7.1. but each party may change the address by written notice
in accordance with the first sentence of this Section. Notices delivered personally will be deemed
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communicated as of actual receipt. Mailed notices will be deemed communicated as of two(2)days
after mailing.
City of Redlands David Taussig and Associates. Inc.
Attention: City Manager Attention: David Taussig, President
P.O. Box 3005 1301 Dove Street, Suite 600
Redlands, CA 92373 Newport Beach, CA 92660
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Section 7.2 This Agreement and the exhibits hereto supersede any and all other
Agreements, either oral or written, between the parties hereto with respect to the rendering of the
Consulting Service by Consultant for Client, and contains all of the covenants and agreements
between the parties with respect to the rendering of such services. Each party to this Agreement
acknowledges that no representations, inducements, promises, or agreements, orally or otherwise,
have been made by any party, or anyone acting on behalf of any party, which are not embodied
herein, and that no other agreement, statement or promise not contained in this Agreement shall be
valid or binding. Any amendment or modification of this Agreement(including any exhibit hereto)
shall be effective only if it is in writing and signed by the parties hereto.
Section 7.3 If any provision in this Agreement is held by a court of competent jurisdiction
to be invalid,void or unenforceable,the remaining provisions of this Agreement shall nevertheless
continue in full force without being impaired or invalidated in any way.
Section 7.4 In the event any action is commenced to enforce or interpret the terms or
conditions of this Agreement the prevailing party shall, in addition to any costs and other relief, be
entitled to the recovery of its reasonable attorneys' fees.
Section 7.5 This Agreement shall be governed by and construed in accordance with the
laws of the State of California.
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IN WITNESS WHEREOF, this Agreement has been executed on the date and year first
above written.
CLIENT: CITY OF REDLANDS Attest:
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B :i Y
yor Cit Clerk
Date: June 2, 1998
CONSULTANT: DAVID TAUSSIG & ASSOCIATES,INC.
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Date:_
David Taussig, Pr silent61
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Exhi it A
SOCIOECONOMIC IMPACT MODEL
Scone of 'Vork
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David Taussig & Associates, Inc. (the "Consultant") shall develop a model to estimate
socioeconomic impacts to the City of Redlands (the "City") of proposed development projects as
required by the text of the City's voter-approved General Plan Amendme"Mt commonly known as
Measure "U." The model shall consist of two components -- an economic impact component and
a social impact component. The economic impact component shall identify the potential impacts
of development projects on the City, and the social impact component shall evaluate the internal
consistency of the methodology recommended by the City's Measure "U" Committee.
This Scope of Work identifies the following tasks required to complete the analyses.
I. Economic Impact Component:
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Task 1. Background Fiscal Research
This task involves identifying selected fiscal parameters relevant to development of the fiscal impact
model, such as the current City budget. In particular this task includes the following:
• Review City budget to identify line item costs and revenues.
•
Compile demographic characteristics by land use type, including population per household
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and employment generation by type of commercial development*.
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Identify the average property tax rate and break dotivn of the average general levy tax
allocation factors for the City from the County Auditor-Controller.
* Sources consulted may include Southern California Association of Governments, State
Department of Finance, Urban Land Use Institute and Urban Decision Systems.
Task 2. Background Pr Ject Research
This task involves collecting selected parameters such as land use data, new public roads, traffic
signals and landscaped areas. In particular this task includes the following:
• Specify proposed land uses b land
Y use type, including gross and net acres, floor-area ratio
and building square footage*.
• Specify projected market prices and project valuation by land use type and planning area,and
projected tenant mix for commercial development sites*.
•
Specify proposed public improvements by tYl?e and planning area, including road lane miles,
parkway and median square footage, park acres (local and regional), landscaped areas,
natural open space and recreational activity areas*.
• Specify projected phasing of land uses and public improvements by type and planning area.*
* To be provided by Client or its consultants with the assistance of the Consultant.
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Task 3 Cost Assumption Analvsis
The Consultant shall employ the Per Unit Multiplier method for calculating relevant City costs rather
than the Case Study Method. This task includes analysis of the City's current operating budget. In
particular this task includes the following:
• Identify departments responsible for providing recurring operation and maintenance (O&M)
services to City projects.
• Quantify existing infrastructure networks (e.g. existing road lane miles)and service program
levels (e.g., number of sworn police officers per 1,000 population or equivalent building
square footage).
Task 4. Revenue Assumption Analysis
The Consultant shall employ the Per Unit Multiplier method for calculating applicable City
revenues, such as sales taxes, property taxes, transient occupancy taxes and franchise fees. Where
applicable,the Consultant shall employ the Per Capita Multiplier Method for calculating other City
revenues, sWh as motor vehicle license fees, gas taxes, fines and forfeitures, state subventions and
other miscellaneous revenue sources. This task shall involve an analysis of the City's current
operating budget for selected revenue categories.
Task S. Fiscal Analvsis Model
Task 5.1 Prosection of osts and Revenues
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Eased on the findings of T1-4,the Consultant t shall developr deet model oriel to analyze and
estimate the fiscal impacts of projects on the City. The model will estimate the recurring fiscal
impacts from provision of public services and operation and maintenance of public facilities at
buildout.
Task 5.2 Y ..Net Fiscal Im act to t e Ci
In addition,the model will include an evaluation of the fiscal balance of development projects. The
model relates the City's recurring revenue and cost assumptions to land use parameters in order to
determine net fiscal impacts. If desired, the fiscal model facilitates testing the impact of variances
in land use assumptions, revenueassumptions, and cost assumptions on a development project's
fiscal outcome.
II. Economic Impact Analvsis
The Consultant shall develop a model to estimate the economic impacts development projects will
have on existing property in the City of Redlands. The following tasks will be involved in
preparation of the economic impact model.
Task 6. E ist g De_, d Analysis
The Consultant shall develop a population based model to quantify the current demand for
comparative retail goods and services in the City. The methodology employed by the model will
be as follows;
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•
Estimate the number of households and average household income in the City based on
information from census and other outside data sources.
• Estimate the percentage of household income currently spent on selected retail sales
categories based on information provided by the U.S. Department of Labor consumer
Expenditure Survey.
• Estimate the total existing purchasing power by multiplying the share of average household
income spent on specified retail sales categories by the number of households.
• Apply estimated City capture rates to estimate targeted demand for each retail sales category.
Task 7. Future Demand Anal, sis
By applying the steps outlined in Task 6 to projected residential units in the trade area, the model
will be able to estimate the future demand for retail sales. Residential unit projections will be
determined based on information extrapolated from the U.S. Census, California State Department
of Finance ("DOP), Southern California Association of Governments ("S.C.A.G."), the City and
other appropriate data sources.
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Task 8. Existing Sup-pl)LAnal,ysis
The economic model shall employ sales tax statistics supplied by the City's sales tax consultant,
Hinderliter. de Llamas and Associates, Inc., to determine the existing supply of comparative retail
sales in the City. The existing supply will be compared to the existing demand to determine whether
the City currently captures retail sales from other areas or experiences a leakage of sales to
surrounding,jurisdictions.
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Task 9. Future Su hr A
The future supply of retail sales that will result from new commercial land uses proposed by
development projects shall be estimated based on standard industry estimates of retail sales per
square foot experienced applied to the projected commercial square footage at buildout. This
estimated future supply will be combined with the existing supply to evaluate whether demand will
be met or exceeded at buildout.
Task 10. OverIV Analysis
In addition to gross supply and demand considerations, it will be important to determine whether
commercial uses anticipated in development projects will be providing the same types of goods and
services as existing retailers in the City. Based on the sales tax data and analysis set forth above,the
model will identify commercial categories for which there is unmet demand in the City, as well as
those categories in which existing merchants can expect to compete with the development projects.
111. Social Impact Component
Task 11. Meetin
This task involves attendance at each of the Measure "U" Committee meetings, up to a maximum
of eight, to assist in the development of the social impact model.
Task 12. Review of Soci I Impact Methodology
This task entails examining the methodology recommended by the Measure "U" Subcommittee for
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review of the social impacts arising from development.
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The Consultant shall coordinate the review with input from both the Measure "U" Subcommittee as
well as the City Attorney. The Consultant shall determine the internal accuracy of the proposed
system as it is applied to hypothetical projects.
Task 13. Dete ination of Wei ht t be a lied to the Fiscal Imp-act. Econ m c lm act and Social
Impact Com � nr rr�„+;,,ual
�ivuut
This task will involve the creation of a "weighting" system that will consolidate the findings of the
three "prongs" of the Socioeconomic Study. The Consultant shall rely on the City to determine the
level of importance of each component and will review the internal accuracy of the proposed
consolidated scoring system. The final scoring system will be flexible -- enabling review of future
residential, commercial, industrial and mixed use projects.
In the alternative,the City may elect to forgo the creation of an explicit weighting system. Instead,
the City may wish to review each project based on the "totality of the circumstances," as evidenced
by the three separate prongs of the study.
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Exhibit B
SOCIOECONOMIC IMPACT MODEL
Bu--diet
The total fee to complete the Scope of Work shall not exceed$35,000. Fees shall be billed on a time
and materials basis, based on the profession fee schedule below.
President $145/Hour
Vice President $135/Hour
Manager $120/Hour
Senior Associate $110/Hour
Associate $80-90/Hour
Analyst $75/Hour
Research Assistant $55/Hour
Payments shall be made by the Client upon presentation of invoices by the Consultant providing
details of services rendered and expenses incurred.
Limitations
This budget covers only those tasks outlined in the Scope of Work. Additional consulting services
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beyond those included in the Scope of Work("Additional Work")may be provided for additional
fees if it causes the budget maximum to be exceeded.
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For example, the following would be considered Additional Work.
• Fiscal impact or other analyses which may be required specifically for the County of San
Bernardino LAFCO, including analysis of impacts on the County.
Review of and
res ondin critiques cif Consultants work
responding to
product(s) from. individuals,...
agencies,or compares other that from the Client.
' Work associated with the analysis of Project alternatives or significant changes in the Project
description during the preparation of the analysis, which may include interviews, analysis,
and negotiations with landowners and City/County staff.
Separate analysis or written presentation of fiscal impacts on the Redevelopment Agency.
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More than eight formal meetings.
• Collection of empirical data to supplement or supplant data from existing studies.
• A consumer sumer s ey to determine retails spending g patterns in the City.
Additional Work will be billed at the hourly rates listed above.
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