HomeMy WebLinkAboutItem 7.3 IKEAFiscalAnalyConsult CITY CLERK
File # 600-30
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: September 3, 2002
SUBJECT: Selection of Consultant for the Fiscal Analysis of the Proposed
IKEA.
Report Prepared by: Andy Byde, Senior Planner
ATTACHMENTS:
1. Resolution approving the selection of Economic and Planning
Systems to conduct Fiscal and Economic Analysis and
authorize the Mayor to execute the contract with Economic and
Planning Systems, Inc., in the amount not to exceed $29,760.
2. Consulting Services Agreement Between the City and
Economic and Planning Systems.
RECOMMENDATION:
/~~1. Adopt Resolution Selecting Economic and Planning Systems,
Inc. for Fiscal Analysis and authorize the Mayor to execute'the
Contract with Economic and Planning Systems, Inc., in the
amount not to exceed $29,760.
FINANCIAL STATEMENT: The cost of the study will be paid by the applicant (IKEA).
DESCRIPTION:
On June 4, 2002, the City Council authorized the a General Plan Amendment Study for the 27.44 acre
property formerly approved for the Commerce One project. Specifically, the General Plan Amendment
Study authorized Staff to evaluate changing the approved land use from Campus Office, to General
Commercial to accommodate a 300,000-340,000 square foot IKEA home furnishings store. As part of
the General Plan Amendment Study, Staff stated that fiscal impacts, including projected revenues and the
costs of providing services, would be evaluated as part of the project.
Staff contacted Economic and Planning Systems (EPS) to request a proposal to evaluate the fiscal impacts
from the proposed IKEA home furnishings store. Economic and Planning Systems has conducted
numerous fiscal impact studies for many jurisdictions within the State and has worked extensively within
the arena of fiscal analysis. In addition, EPS has completed various projects for the City with superior
results.
ANALYSIS:
EPS' proposal includes the traditional fiscal analysis focusing on determining the cost of providing
services and projecting the potential net revenue from the proposed IKEA. In addition to evaluating the
narrow fiscal analysis, EPS will evaluate the following: the opportunity cost of office development in lieu
COPIES TO: IKEA, EPS
7.,.3
G:\PA#~2002\02-034\CC SR SELCECT EPS.doc //,~ ~ ~
of IKEA, the potential traffic impacts on adjacent shopping areas resulting, and the potential impacts of
the proposed IKEA on existing and future shopping patterns.
RECOMMENDATION:
Staff recommends that the City Council adopt resolution approving the selection of Economic and Planning
Systems, Inc. for Fiscal Analysis and authorize the Mayor to execute the contract with Economic and
Planning Systems, Inc., in the amount not to exceed $29,760.
RESOLUTION NO. - 02
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING THE SELECTION OF ECONOMIC AND PLANNING SYSTEMS TO CONDUCT
FISCAL AND ECONOMIC ANALYSIS
WHEREAS, on June 4, 2002 the City Council authorized the IKEA General Plan Amendment
Study for 27.44 acres; and
WHEREAS, the 27.44 acres is located within the Eastern Dublin Specific Plan Area; and
WHEREAS, the goals and policies of the Eastern Dublin Specific Plan require development to be
at minimum revenue neutral; and
WHEREAS, the fiscal and economic evaluation will enable City Sta£fto determine the fiscal
impacts of the proposed IKEA home furnishings store; and
WHEREAS, Economic and Planning Systems has a clear understanding of the project scope and
is able ~o perform the requested task.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby
selects Economic and Planning Systems to conduct fiscal and economic analysis and authorizes the Mayor
to negotiate and execute the contract, not to exceed $29,760.
PASSED, APPROVED AND ADOPTED this 3ra day of' September 2002.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
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Attachment 1
CONSULTING SERVICES AGREEMENT BETWEEN
THE CiTY OF DUBLIN AND
ECONOMIC AND PLANNING SYSTEMS
THIS AGREEMENT for consulting services is made by and between the City of Dublin ("City") and
Economic an d Planning Systems ("Consultant") as of September 3r~, 2002.
Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant
shall provide to City the services described in the Scope of Work attached as Exhibit A at the time and
place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms
of this Agreement and Exhibit A, the Agreement shall prevail.
1.1 Term of Services. The term of this Agreement shall begin on the date first noted above
and shall end on September 3rd, 2004, the date of completion specified in Exhibit A, and
Consultant shall complete the work described in Exhibit A prior to that date, unless the
term of the Agreement is otherwise terminated or extended, as provided for in Section 8.
The time provided to Consultant to complete the services required by this Agreement shall
not affect the City's right to terminate the Agreement, as provided for in Section 8.
1.2 Standard of Performance. Consultant shall perform all services required pursuant to this
Agreement in the manner and according to the standards observed by a competent
practitioner of the profession n which Consultant is engaged in the geographical area in
which Consultant practices its profession. Consultant sha] prepare al work products
required by this Agreement in a substantial, first-class manner and shall conform to the
standards of quality normally observed by a person practicing in Consultant's profession.
1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform
services pursuant to this Agreement. In the event that City, in its sole discretion, at any
time during the term of this Agreement, desires the reassignment of any such persons,
Consultant shall, immediately upon receiving notice from City of such desire of City,
reassign such person or persons
1.4 Time. Consultant shall devote such time to the performance of services pursuant to this
Agreement as may be reasonably necessary to meet the standard of performance
provided in Section 1.1 above and to satisfy Consultant's obligations hereunder.
Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed $29,760
notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be
performed and reimbursable costs ~ncurred under this Agreement. In the event of a conflict betWeen this
Agreement and Consultant's proposal, attached as Exhibit A, regarding the amount of compensation, the
Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the
time and in the manner set forth herein. The payments specified below shall be the only payments from
City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to
City in the manner specified herein. Except as specifically authorized by City, Consultant shall not bill City
for duplicate services performed by more than one person.
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ATI'A
Consultant and City acknowledge and agree that compensation paid by City to Consultant under this
Agreement is based upon Consultant's estimated costs of providing the services required hereunder,
including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties
further agree that compensation hereunder is intended to include the costs of contributions to any pensions
and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City
therefore has no responsibility for such contributions beyond compensation required under this Agreement.
2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the
term of this Agreement, based on the cost for services performed and reimbursable costs
incurred prior to the invoice date. Invoices shall contain the following information:
· Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice,
etc.;
· The beginning and ending dates of the billing period;
· A Task Summary containing the original contract amount, the amount of prior
billings, the total due this period, the balance available under the Agreement, and
the percentage of completion;
· At City's option, for each work item in each task, a copy of the applicable time
entries or time sheets shall be submitted showing the name of the person doing
the work, the hours spent by each person, a brief description of the work, and
each reimbursable expense;
· The total number of hours of work performed under the Agreement by Consultant
and each employee, agent, and subcontractor of Consultant performing services
hereunder, as well as a separate notice when the total number of hours of work by
Consultant and any individual employee, agent, or subcontractor of ~onsultant
reaches or exceeds 800 hours, which shall include an estimate of the time
necessary to complete the work described in Exhibit A;
· The Consultant's signature.
2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for
services satisfactorily performed, and for authorized, reimbursable costs incurred, City
shall have 30 days from the receipt of an invoice that complies with all of the requirements
above to pay Consultant.
2.3 Final Payment. City shall pay the last 10% of the total sum due pursuant to this
Agreement within s.ixty (60) days after completion of the services and submittal to City of a
final invoice, if all services required have been satisfactorily performed.
2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to
this Agreement. City shall not pay any additional sUm for any expense or cost whatsoever
incurred by Consultant in rendering services pursuant to this Agreement. City shall make
no payment for any extra, further, or additional serVice pursuant to this Agreement.
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In no event shall Consultant submit any invoice for an amount in excess of the maximum
amount of corn pensation provided above either for a task or for the entire Agreement,
unless the Agreement is modified prior to the submission of such an invoice by a properly
executed change order or amendment.
2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed
the amounts shown on the following fee schedule:
2.6 Reimbursable Expenses. Reimbursable expenses are specified below, and shall not
exceed twenty nine thousand seven hundred sixty ($29,760). Expenses not listed below
are not chargeable to City. Reimbursable expenses are included in the total amount of
compensation provided under this Agreement that shall not be exceeded.
2.7 Paymedt of Taxes. Consultant is solely responsible for the payment of employment taxes
incurred under this Agreement and any similar federal or state taxes.
2.8 Payment upon Termination. In the event that the City or Consultant termi nates this
Agreement pursuant to Section 8, the City shall compensate the Consultant for all
outstanding costs and reimbursable expenses incurred for work satisfactorily completed as
of the date of written notice of termination. Consultant shall maintain adequate logs and
timesheets in order to verify costs incurred to that date
2.9 Authorization to Perform Services. The Consultant is not authorized to perform any
services or incur any costs whatsoever under the terms of this Agreement until receipt of
authorization from the COntract Administrator.
Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole
cost and expense, provide all facilities and equipment that may be necessary to perform the services
required by this Agreement. City shall, make available to Consultant only the facilities and equipment listed
in this section, and only under the terms and conditions set forth herein.
City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be
reasonably necessary for Consultant's use while consulting with City employees and reviewing records and
the information in possession of the City. The location, quantity, and time of furnishing those facilities shall
be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve
incurring any direct expense, including but not limited to corn puter, long-distance telephone or other
communication charges, vehicles, and reproduction facilities.
Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement,
Consultant, at its own cost and expense, shall procure "occurrence coverage" insurance against claims for
injuries to persons or damages to property that may arise from or in connection with the performance of the
work hereunder by the Consultant and its agents, representatives, employees, and subcontractors,
Consultant shal provide proof satisfactory to City of such insurance that meets the requirements of this
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section and under forms of insurance satisfactory in all respects to the City.. Consultant shall maintain the
insurance policies required by this section throughout the term of this Agreement. The cost of such
insurance shall be included in the Consultant's bid. Consultant shall not allow any subcontractor to
commence work on any subcontract until Consultant has obtained all insurance required herein for the
subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be
submitted and made part of this Agreement prior to execution.
4,1 Workers' Compensation. Consultant shall, at its sole cost and expense, maintain
Statutory Workers' Compensation Insurance and Employer's Liability Insurance for any
and all persons employed directly or indirectly by Consultant. The Statutory Workers'
Compensation Insurance and Employer's Liability Insurance shall be provided with limits of
not less than ONE MILLION DOLLARS ($1,000,000.00) per accident. In the alternative,
Consultant may rely on a self-insurance program to meet those requirements, but only if
the program of self-insurance complies fully with the provisions of the California Labor
Code. Determination of whether a self-insurance program meets the standards of the
Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if
insurance is provided, or the Consultant, if a program of self-insurance is provided, shall
waive all rights of subrogation against the City and its officers, officials, employees, and
volunteers for loss arising from work performed under this Agreement.
An endorsement shall state that coverage shall not be canceled except after thirty (30)
days' prior written notice by certified mail, return receipt requested, has been given to the
City, Consultant shall notify City within 14 days of notification from Consultant's insurer if
such coverage is suspended, voided or reduced in coverage or in limits.
4.2 Commercial General and Automobile Liability Insurance.
4.2.1 General requirements. Consultant, at its own cost and expense, shall maintain
commercial general and automobile liability insurance for the term of this
Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00)
per occurrence, combined single limit coverage for risks associated with the work
contemplated by this Agreement. If a Commercial General Liability Insurance or an
Automobile Liability form or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to the work to be
performed under this Agreement or the general aggregate limit shall be at least
twice the required occurrence limit. Such coverage shall include but shall not be
limited to, Protection against claims arising from bodily and personal injury,
including death resulting therefrom, and damage to property resulting from
activities Contemplated under this Agreement, including the use of owned and non-
owned automobiles.
4.2.2 Minimum scope of coverage, Commercial general coverage shall be at least as
broad as Insurance Services Office Commercial General Liability occurrence form
CG 0001 (ed. 11/88) or Insurance Services Office form number GL 0002 (ed. 1/73)
covering comprehensive General Liability and Insurance Services Office form
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number GL 0404 covering Broad Form Comprehensive General Liability.
Automobile coverage shall be at least as broad as Insurance SerVices Office
Automobile Liability form CA 0001 (ed. 12/90) Code 8 and 9 ("any auto"). No
endorsement shall be attached limiting the coverage.
4.2.3 Additional requirements. Each of the following shall be included in the
insurance coverage or added as an endorsement to the policy:
a. City and its officers, employees, agents, and volunteers shall be covered
as additional inSureds with respect to each of the following: liability arising
out of activities performed by or on behalf of Consultant, including the
insured's general superVision of Consultant; products and corn pleted
operations of Consultant; premises owned, occupied, or used by
Consultant; and automobiles owned, leased, or used by the Consultant.
The coverage shall contain no special limitations on the scope of
protection afforded to City or its officers, employees, agents, or
volunteers.
b. The insurance shall cover on an occurrence or an accident basis, and not
on a claims-made basis
c. An endorsement must state that coverage is primary ~nsurance with
respect to the City and its officers, officials, employees and volunteers,
and that no insurance or self-insurance maintained by the City shall be
called upon to contribute to a loss under the coverage.
d. Any failure of CONSULTANT to corn ply with reporting provisions of the
policy shall not affect coverage provided to CITY and its officers,
employees, agents, and volunteers,
e. An endorsement shall state that coverage shall not be canceled except
after thirty (30) days' prior written notice by certified mail, return receipt
requested, has been given to the City. Consultanl shall notify City within
14 days of notification from Consultant's insurer if such coverage is
suspended, voided or reduced in coverage or ~n limits.
4.3 Professional Liability Insurance. Consultant, at its own cost and expense, shall
maintain for the period covered by this Agreement professional liability ,nsurance for
licensed professionals performing work pursuant to this Agreement in an amount not less
than ONE MILLION DOLLARS ($1,000,000) covenng the licensed professionals' errors
and omissions.
4.3.1 Any deductible or self-insured retention shall not exceed $150,000 per claim.
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4.3.2 An endorsement shall state that coverage shall not be suspended, voided,
canceled by either party, reduced in coverage or in limits, except after thirty (30)
days' prior written notice by certified mail, return receipt requested, has been given
to the City.
4.3.3 The policy must contain a cross liability or severability of interest clause.
4.3.4 The following provisions shal apply if the professional liability coverages are
written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the
date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be
provided for at least five years after corn pletion of the Agreement or the
work, so long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another
claims-made policy form with a retroactive date that precedes the date of
this Agreement, Consultant must provide extended reporting coverage for
a minimum of five years after completion of the Agreement or the work.
The City shall have the right to exercise, at the Consultant's sole cost and
expense, any extended reporting provisions of the policy, if the Consultant
cancels or does not renew the coverage.
d. A copy of the claim reporting requirements must be submitted to the City
prior to the commencement of any work under this Agreement.
4.4 All Policies Requirements.
4.4.1 Acceptability of insurers. All insurance required by this section is to be placed
with insurers with a Bests' rating of no less than A:VII.
4.4.2 Verification of coveraqe. Prior to beginning any work under this Agreement,
Consultant shall furnish City with certificates of insurance and with original
endorsements effecting coverage required herein. The certificates and
endorsements for each insurance policy are to be signed by a person authorized
by .that insurer to bind coverage on its behalf. The City reserves the right to
require complete, certified copies, of all required insurance policies, at any time.
4.4.3 Subcontractors. Consultant shall include all subcontractors as insureds under its
policies or Shall furnish separate certificates and endorsements for each
subcontractor. All coverages for subcontractors shall be subject to all of the
requirements stated herein.
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4.4.4 Variation. The City may approve.a variation in the foregoing insurance
requirementS, upon a determinationthat the coverages, scope, limits, and forms of
such insurance are either not commercially available, or that the City's interests
are otherwise fully protected.
4.4.5 Deductibles and Self-insured Retentions. Consultant shall disclose to and
obtain the approval of City for the self-insured retentions and deductibles before
beginning any of the services or work called for by any term of this Agreement.
During the period covered by this Agreement, only upon the prior express wdtten
authorization of Contract Administrator, Consultant may increase such deductibles
or self-insured retentions with respect to City, its officers, employees, agents, and
volunteers. The Contract Administrator may condition approval of an increase in
deductible or self-insured retention levels with a requirement that Consultant
procure a bond, guaranteeing payment of losses and related investigations, claim
administration, and defense expenses that is satisfactory in all respects to each of
them.
4.4.6 Notice of Reduction in Coverage. In the event that any coverage required by
this section is reduced, limited, or materially affected in any other manner,
Consultant shall provide written notice to City at Consultant's earliest possible
opportunity and in no case later than five days after Consultant is notified of the
change in coverage.
4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide
or maintain any insurance policies or policy endorsements to the extent and within the time
herein required, City may, at its sole option exercise any of the following remedies, which
are alternatives to other remedies City may have and are not the exclusive remedy for
Consultant's breach:
· Obtain such insurance and deduct and retain the amount of the premiums for such
insurance from any sums due under the Agreement;
· Order Consultant to stop work under this Agreement or withhold any payment that
becomes due to Consultant hereunder, or both stop work and withhold any payment,
until Consultant demonstrates compliance with the requirements hereof; and/or
· Terminate this Agreement.
Section $. INDEMNIFICATION AND CONSULTANT'S RESPONSIBILITIES. Consultant shall
indemnify, defend with counsel selected by the City, and hold harmless the City and its officials, officers,
employees, agents, and volunteers from and against any and all losses, liability, claims, suits, actions,
damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to
property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole
or in part, by the willful misconduct or negligent acts or omissions of Consultant or its employees,
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subcontractors, or agents, by acts for which they COuld be held strictly liable, or by the quality or character
of their work. The foregoing obligation of Consultant shall not apply when (1) the injury, loss of life, damage
to property, .or violation of law arises whol y from the negligence or willful misconduct of the City or its
officers, em ployees, agents, or volunteers and (2) the actions of Consultant or its employees,
subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or
violation of law. It is understood that the duty of Consultant to indemnify and hold harmless includes the
duty to defend as set forth in Section .2778 of Ihe California Civil Code. Acceptance by City of insurance
certificates and endorsements required under this Agreement does not relieve Consultant from liability
under this indemnification and hold harmless clause. This indemnification and hold harmless clause shal
apply to any damages or claims for damages whether or not such ~nsurance policies shall have been
determined to apply. By execution of this Agreement, Consultant acknowledges and agrees to the
provisions of this Section and that it is a material element of consideration.
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services
under Ihis Agreement is determined by a court of competent jurisdiction or the California Public Employees
Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall
indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions
for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the
payment of any penalties and interest on such contributions, which would otherwise be the responsibility of
City.
Section 6. STATUS OF CONSULTANT.
6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall
be an independent contractor and shall not be an employee of City. City shall have the
fig ht to control Consultant only insofar as the results of Consultant's services rendered
pursuant to this Agreement and assignment of personnel pursuant to SubparagraPh 1.3;
however, otherwise City shall not have the right to control the means by which Consultant
accomplishes services rendered pursuant to this Agreement. Notwithstanding any other
City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant
and any of its employees, agents, and subcontractors providing services under this
Agreement shall not qualify for or become entitled to, and hereby agree to waive any and
all claims to, any compensation, benefit, or any incident of employment by City, including
but not limited to eligibility to enroll in the California Public Employees Retirement System
(PERS) as an employee of City and entitlement to any contribution to be paid by City for
employer contributions and/or employee contributions for PERS benefits.
6.2 Consultant No Agent. Except as City may spFcify in writing, Consultant shall have no
authority, express or implied, to act on behalf 0~ City in any capacity whatsoever as an
agent. Consultant shall have no authority, express or implied, pursuant to this Agreement
to bind City to any obligation whatsoever.
Section 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
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7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with
all laws applicable to the performance of the work hereunder.
7.3 Other Governmental Ee,qulations. To the extent that this Agreement may be funded by
fiscal assistance from another governmental entity, Consultant and any subcontractors
shall 'comply with all applicable rules and regulations to which City is bound by the terms of
such fiscal assistance program.
7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and
its em ployees, agents, and any subcontractors have all licenses, permits, qualifications,
and approvals of whatsoever nature that are legally required to practice their respective
professions Consultant represents and warrants to City that Consultant and its
employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect
at all times during the term of this Agreement any licenses, permits, and approvals that are
legally required to practice their respective professions. In addition to the foregoing,
Consultant and any subcontractors shall obtain and maintain during the term of this
Agreement valid Business Licenses from City.
7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the
basis of a person's race. religion, color, national origin, age, physical or mental handicap or
disability, medical condition, marital status, sex, or sexual orientation, against any
em ployee, applicant for employment, subcontractor, bidder for a subcontract, or participant
in, recipient of, or applicant for any services or programs provided by Consultant under this
Agreement. Consultant shall comply with all applicable federal, state, and local laws,
policies, rules, and requirements related to equal opportunity and nondiscrimination in
employment, contracting, and the provision of any services that are the subject of this
Agreement, including but not limited to the satisfaction of any positive obligations required
of Consultant thereby.
Consultant shall include the provisions of this Subsection rn any subcontract approved by
the Contract Administrator or this Agreement.
Section 8. -TERMINATION AND MODIFICATION.
8.1 Termination. City may cancel this Agreement at any time and without cause upon written
notification to Consultant.
Consultant may cancel this Agreement upon 30 days' written notice to City and shall
include in such notice the reasons for cancellation.
In the event of termination, Consultant shall be entitled to compensation for services
performed to the effective date of termination; City, however, may condition payment of
such compensation upon Consultant delivering to City any or all documents, photographs,
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computer softWare, video and audio tapes, and other materials provided to Con sultant or
prepared by or for Consultant or the City in connection with this Agreement.
8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this
Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a
written amendment to this Agreement, as provided for herein. Consultant understands and
agrees that, if City grants such an extension, City shall have no obligation to provide
Consultant with compensation beyond the maximum amount provided for in this
Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no
obligation to reimburse Consultant for any otherwise reimbursable expenses-incurred
during the extension period.
8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the
parties.
8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this
Agreement contemplates personal performance by Consultant and is based upon a
determination of Consultant's unique personal competence, experience, and specialized
personal knowledge. Moreover, a substantial inducement to City for entering into this
Agreement was and is the professional reputation and competence of Consultant.
Consultant may not assign this Agreement or any interest therein without the prior written
approval of the Contract Administrator. Consultant shall not subcontract any portion of the
performance contemplated and provided for herein, other than to the subcontractors noted
in the proposal, without prior written approval of the Contract Administrator.
8.5 Survival. All obligations arising prior to the termination of this Agreement and all
provisions of this Agreement allocating liability between City and Consultant shall survive
the termination of this Agreement.
8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms
of this Agreement, City's remedies shall included, but not be limited to, the following:
8.6.1 Immediately terminate the Agreement;
8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any
other work product prepared by Consultant pursuant to this Agreement;
8.6.3 Retain a different consultant to corn plete the work described in Exhibit A not
finished by Consultant; or
8.6.4 Charge Consultant the difference between the cost to complete the work
described in Exhibit A that' is unfinished at the time of breach and the amount that
City would have paid Consultant pursuant to Section 2 if Consultant had
completed the work.
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Section 9. KEEPING AND STATUS OF RECORDS,
9.1 Records Created as Part of Consultant's Performance, All reports, data, maps,
models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications,
records, files, or any other documents or materials, in electronic or any other form, that
Consultant prepares or obtains pursuant to this Agreement and that relate to' the matters
covered hereunder shall be the property of the City. Consultant hereby agrees to deliver
those documents to the City upon termination of the Agreement. It is understood and
agreed that the documents and other materials, including but not limited to those described
above, prepared pursuant to this Agreement are prepared specifically for the City and are
not necessarily suitable for any future or other use. City and ConSultant agree that, until
final approval by City, all data, plans, specifications, reports and other documents are
confidential and will not be released to third parties without prior written consent of both
parties.
9.2 Consultant's Books and Records. Consultant shall maintain any and all ledgers, books
of account, invoices, vouchers, canceled checks, and other records or documents
evidencing or relating to charges for services or expenditures and disbursements charged'
to the City under this Agreement for a minimum of three (3) years, or for any longer period
required by law, from the date of fina payment to the Consultant to this Agreement.
9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this
Agreement requires Consultant to maintain shall be made available for inspection, audit,
and/or copying at any time during regular business hours, upon oral or written request of
the City. Under California Government Code Section 8546.7, if the amount of public funds
expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the
Agreement shall be subject to the examination and audit of the State Auditor, at the
request of City or as part of any audit of the City, for a period of three (3) years after final
payment under the Agreement.
Section 10 MISCELLANEOUS PROVISIONS.
I0.1 Attorneys' Fees. If a party to this Agreement brings any action, including an action for
declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing
party shall be entitled to reasonable attorneys' fees in addition to any other relief to which
that party may be entitled. The court may set such fees in the same action or in a
separate action brought for that purpose.
10.2 Venue. In the event that either party brings any action against the other under this
Agreement, the parties agree that trial of such action shall be vested exclusively in the
state courts of California in the County of Alameda or in the United States District Court for
the Northern District of California,
10.3 Severability. If a court of competent juriSdiction find s or rules that any provision of this
Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so
Consulting Services Agreement between September 3, 2002
City of Dublin and Economic & Planning Systems Page 11 of 13
adjudged shall remain in full force and effect. The invalidity in whole or in part of any
provision of this Agreement shall r~ot void or affect the validity of any other provision of this
Agreement.
10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this
Agreement does not constitute a waiver of any other breach of that term or any other term
of this Agreement.
10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of
and shall apply to and bind the successors and assigns of the parties.
10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written
studies and other printed material on recycled paper to the extent it is available at equal or
less cost than virgin paper.
10.1 Conflict of Interest. Consultant may serve other clients, but none whose activities within
the corporate limits of City or whose business, regardless of location, would place
Consultant in a "conflict of interest," as'that term is defined in the Political Reform Act,
codified at California Government Code Section 81000 et seq.
Consultant shall not employ any City official in the workperformed pursuant to this
Agreement. No officer or employee of City shall have any financial interest in this
Agreement that would violate California Government Code Sections 1090 et seq.
Consultant hereby warrants that it is not now, nor has it been in the previous twelve (12)
months, an employee, agent, appointee, or official of the City. If Consultant was an
employee, agent, appointee, or official of the City in the previous twelve months,
Consultant warrants that it did not participate in any manner in the forming of this
Agreement. Consultant understands that, if this Agreement is made in violation of
Government Code §1090 et. seq., the entire Agreement is void and Consultant will not be
entitled to any compensation 'for services performed pursuant to this Agreement, including
reimbursement of expenses, and Consultant will be required to reimburse the City for any
sums paid to the Consultant. Consultant understands that, in addition to the foregoing, it
may be subject to criminal prosecution for a violation of Government Code § 10@0 and, if
applicable, will be disqualified from holding public office in the State of California.
10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or
interview related to this Agreement, either orally or through any written materials.
10.9 Contract Administration. This Agreement shall be administered by the Community
Development Director ("Contract Administrator"). All correspondence shall be directed to
or through the Contract Administrator or his or her designee.
Consulting Services Agreement between September 3, 2002
City of Dublin and Economic & Planning Systems Page 12 of 13
Walter Kieser
Principal
Economic & Planning Systems
2501 9th Street, Suite 200
Berkeley, CA 94710
Any written notice to City shall be sent to:
Community Development Director
Eddie Peabody Jr.
City of Dublin
100 Civic Plaza
Dublin, CA 94568
10.11 Integration. This Agreement, including the scope of work attached hereto and
incorporated herein as Exhibit A, represents the entire and integrated agreement between
City and Consultant and supersedes all prior negotiations, representations, or agreements,
either written or oral.
..... CITY OF CONSULTANT
Eddie Peabody Jr, Walter Kieser
Community Development Director Prinicipal
Attest: ~ ~o~
Kay Keck, City Clerk ~~: Vice Pzesident
Approved as to Form:
Elizabeth Silver, City Attorney
G:~A#~2002\02-034~contractdoc
Consulting Services Agreement between September 3, 2002
City of Dublin and Economic & Planning Systems Page 13 of 13
EXHIBIT A
SCOPE OF SERVICES
See attached.
G:\PAf~?.002\02-034\contract. doc
Consulting Services Agreement between September 3, 2002
City of Dublin and Economic & Planning Systems Exhibit A Page 1 of 8
Exhibit A
Work Program
July 15, 2002
WORK lVROGRAM:
FISCAL AND ECONOMIC IMPACT ANALYSIS OF DUBT.rN IKEA
PROJECT UNDERSTANDING
As a result of weak demand for office space in the Tri-Valley, plans for a large office
complex to be located on a 27.4 acre site in Eastern Dublin have been placed on
indefinite hold. Recently the IKEA Corporation has proposed to construct a 300,000
square foot retail store on this site. In addition to the IKEA store, the site could
accommodate 100,000 to 200,000 square feet of additional retail uses. The development
of a large-scale and high performing retail complex appears feasible and economically
beneficial at a time when DublJ_n's office market is experiencing high vacancy rates and
declining rents; thus, there is an opportunity for the City to expand its retail shopping
opportunities and to generate substantial sales tax revenue for the City,. However, the
City seeks to understand the full range of potential fiscal and economic effects that could
be induced by the proposed IKEA project before it formally considers the application.
We have divided the fiscal and economic impact analysis into six tasks, as described
below. Within each task description, we have described the work effort and any
products that will be completed. Completion of these tasks will provide the City with a
comprehensive understanding of the fiscal and economic impacts likely to result from
development of the proposed IKEA store. The proposed staffing and budget proposal is
also provided.
TASK 1: PROJECT INITIATION
This task will provide EPS with a thorough understanding of the City's expectations for
the fiscal and economic impact analysis. EPS will meet with City staff tO further discuss
project goals, time frame, technical aspects of the study, and work completed to date by
the staff. At this time, EPS will collect and review pertinent City Budget and planning
documents, as well as other relevant market and background information from the City
of Dublin and the project proponent. A detailed schedule will also be established.
TASK 2: DESCRIPTION OF PROPOSED PROJECT AND
PROJECT ALTERNATIVE
TASK 2.1: PROIECT DESCRIPTION
The fiscal impact of the proposed project will depend largely on the sLze and nature of
the retail development on the site. In order to provide the most accurate analysis and
results, EPS will work with City staff and, as appropriate, representatives of IKEA to
develop a detailed description o£ the proposed development; including assumptions
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Work Program.£or EPS.doc
Work Program
lucy 15, 2002
related to construction timeline, total square feet and acreage, number of parking spaces,
number and type of employees, anticipated service needs, and other information.
IKEA's market strategy, which appears to involve the creation of a number of stores in
the Bay Area, may influence assumptions regarding business potential and relative sales
tax performance.
The project description will also incorporate a series of financial and market
assumptions needed to conduct the fiscal and economic analysis, including construction
costs, taxable retail sales per square foot, and the percent of total sales that are "new" to
the City (i.e. sales that would not have taken place elsewhere in DubLin were the IKEA
store not present). EPS will also generate an alternative project description based on
development of the office complex initially planned for this site. This project alternative
description will be used as a basis for a fiscal and economic comparison with the
proposed IKEA store. At the conclusion of this task, EPS will provide the detailed
project description and alternative description for the City's review, and will make
revisions as appropriate.
TASK 2.2: MARKET REVIEW
A number of the assumptions regarding the proposed IKEA anchored retail center and
the project alternative'will require some reference to real estate and retail business
market trends in the area. Specifically, the City is concerned about the potential quality
of the other retail businesses on the site (i.e. will this retail be similar to, and thus
potentially compete with, existing retail outlets in the East Dublin Area, or could it be
tenanted to enhance existing retail opporttmities in the area?). Another market question
relates to when the project alternative office complex could be developed. Current
market conditions suggest that such a project is infeasible. EPS will estimate when such
a project would be feasible in the future given regional trends for such uses. The market
review will provide information that contributes to the development of the project
description (e.g. the possibility of "high end" retail uses on the IKEA site) and the fiscal
and economic analysis generally.
TASK 3: FISCAL IMPACT ANALYSIS
Like other California municipalities, the City of Dublin is understandably concerned
about the fiscal impacts of new development. Large-scale retail developments such as
the one proposed are typically associated with positive fiscal impacts, and EPS expects
this to hold true for the proposed IKEA store as well. The purpose of this task is to
estimate the amount of any net fiscal impact to the City of both the proposed retail
project and the alternative office development. As shown below, the fiscal analysis is
divided into three sub-tasks, including an estimate of the incremental service costs
induced by the proposed store, an estimate of the public revenues generated by such a
project, and a summary of the net fiscal impacts associated with each land use.
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Work Program for EPS.doc
ExhibitA
Work Program
July 18, 2002
TASK 3.1: COST PROJECTIONS
The first step in Task 3.1 will be to review the budget documents and other information
obtained in Task 1. EPS will also conduct interviews with representatives of City
departments likely to be most effected by the proposed development. In addition to the
staff interviews, EPS will conduct cross-sectional analysis with other cities that have
developed large retail complexes (e.g. Emeryville). Based upon this research, EPS will
identify the most appropriate forecasting technique for each cost category, and will
review its proposed methodology with City staff and make adjustments as appropriate.
Next, EPS will prepare an estimate of public service costs incurred by the proposed
development and the alternative scenario, including police, fire, and other service costs
as well as the cost of maintaining public roads and other infrastructure.
Cost projections will be estimated for each year begilmmg with initial site development
in 2003, and ending in 2010, approximately six years following the store's opening. This
timeframe will permit the analysis to capture any slow-down (or ramp-up) in retail sales
that may occur when shopping patterns settle years after the store has opened.
TASK 3.2: REVENUE PROJECTIONS
EPS will estimate annual revenues associated with the proposed development and the
alternative development scenario. These estimates will include property and sales taxes,
as well as other potential revenue sources caused by the project. Property tax projections
will reflect the price of land acquisition paid to the Alameda County Surplus Authority,
as well as the value of building construction and other improvements. Sales tax
projections will be evaluated in the context of the tax sharing agreement between the
City of Dublin and Alameda County. Estimates will be based on the level of retail sales
anticipated at the proposed IKEA as well any new local expenditures made by project-
generated employment, including short-term construction workers and longer-term
employees and visitors (destination shoppers). EPS will estimate the total revenue
generated by the proposed project in each year, as described above.
TASK 3.3: NET FISCAL IMPACTS ANALYSIS
Based upon the information obtained.in the previous sub-tasks, EPS will estimate the net
fiscal impact expected to result from the proposed IKEA development and the
alternative development scenario on an annual basis. Although EPS expects this
analysis to indicate a considerable net fiscal surplus, EPS will describe appropriate
mitigation measures should the fiscal result be negative, including special taxes,
assessments, and reorganization of service providers.
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Work Program for EPS. doc
Work Program
July 18, 2002
TASK 4: ECONOMIC IMPACT ANALYSIS
The introduction of a large-scale and successful retail performer such as IKEA can be
expected to induce a range of direct and indirecteconomic impacts beyond the fiscal
impacts identified in Task 3. The purpose of the economic impact analysis will be to
determine the degree to which the proposed development may impact other retail
supply in the City, the desirability of Eastern Dublin as a shopping destination, and the
opportunity cost of foregoing office development on the proposed site.
TASK 4.1: EVALUATE IMPACT OF PROPOSED STORE ON TRAFFIC
CONGESTION AND DESIRABILITY OF SHOPPING DESTINATION
The existing IKEA location in Emeryville has contributed to a severely deficient traffic
situation in the area. Anecdotal evidence exists that the high levels of traffic congestion
serve to deter some shoppers not only from the IKEA store, but also from neighboring
retail stores. As proposed, the Dublin IKEA would be larger than the company's
Emeryvflle location. It is possible that levels of service on key roadways could
deteriorate to the point where Eastern Dublin becomes a less desirable shopping
destination that it would be without development of an IKEA store. If such a situation is
predicted by the Traffic Study that is being prepared concurrently with the fiscal and
economic analysis, it could jeopardize the levels of sales tax revenues that the City could
achieve. Using information provided in the Traffic Study as well as case studies of
existing IKEA locations and consumer'behavior, EPS will evaluate and estimate the
economic impacts that may accompany increased traffic associated with the proposed
development.
TASK 4.2: EVALUATE IMPACT OF PROPOSED STORE ON SHOPPING
PATTERNS AND THE OPENING OR CLOSURE OF RETAIL STORES
The opening of an IKEA store in eastern Dublin Could be a catalyst for further retail
development in the area and consequently the opening of additional retail outlets in the
City. Alternately, the high level of retail sales anticipated at IKEA could come at the
expense of existing retailers in the City (particularly businesses in competing retail
categories), which could result in store closures. The propensity for one or the other of
these situations to materialize (or both) depends upon the nature of existing retail in the
City and the expenditure patterns of households in the market area. EPS will make a
determination as to which outcome is likely in the City of Dublin should the proposed
development go forward based on the market review conducted in Task 2 along with
our extensive knowledge of retail market dynamics and a variety of in-house and other
information resources at our disposal.
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Work Program.for EPS. doc
Work Program
July 18, 2002
TASK 4.3: ESTIMATE OPPORTUNITY COST OF FORGOING OFFICE
DEVELOPMENT IN FAVOR OF PROPOSED RETAIL STORE
In order to provide the City with a comprehensiye understanding of the costs and
benefits associated with the proposed IKEA store, EPS will estimate the opportunity cost
of developing retail on the subject site instead of the office park previously planned.
EPS will define the opportunity cost as the difference between the net fiscal and
economic impact of the office park and that of the proposed IKEA store. This evaluation
will be based on the project descriptions developed in Task 2, the fiscal analysis
conducted in Task 3, as well as the economic considerations outlined in the above sub-
tasks.
TASK 5: SUMMARY ANALYSIS
Drawing on conclusions of the tasks described above, EPS will synthesize the results of
the fiscal and economic impact analyses to provide an understanding of how the
proposed development stands to impact the City. Thus, the net fiscal impact estimated
in Task 3 will be adjusted upward or' downward based on the findings of Task 4 to
reflect the total impacts to the City induced by the proposed development.
TASK 6: FINDINGS AND REPORT PREPARATION
Based on the analysis completed in earlier tasks, as well as our research and
understanding of retail developments in similar municipalities, EPS will make specific
findings regarding the proposed development, the optimal size of an IKEA store in this
location, and other actions that may enhance or hin~der the success of the proposed
project. These findings of the fiscal and economic impact analysis will be documented in
a Technical Report and submitted for the City's review. EPS will meet with City staff to
discuss the contents of the Technical Report, and will also be available to present its
findings to the City Council.
BUDGET, STAFFING, AND PROJECT SCHEDULE
BUDGET
The EPS budget for this project by major task and staff person is provided in Table 1.
We estimate that EPS can complete the above Scope of Work for a not-to-exceed budget
amount of $29,760. The budget estimate covers all costs associated with the tasks,
materials, and meetings described in the Scope. Specifically, it includes EPS attendance
at up to three meetings with the client and one presentation to City Council as well as
preparation of a Technical Report. Additional tasks or meetings requested by the client
will be billed on a time-and-materials basis at our standard hourly rates. Charges for
6
Work Program.for EPS.doc
Work Program
July 18, 2002
EPS time are based on the amount of time actually spent. Invoices will be submitted
monthly and are payable upon receipt.
7
Work Program for EPS. doc
EXHIBIT B
COMPENSATION SCHEDULE
BUDGET, STAFFING, AND PROJECT SCHEDULE
BUDGET
The EPS budget for this project by major task and staff person is provided in Table 1. We estimate that
EPS can complete the above Scope of Work for a not-to-exceed budget amount of $29,760. The budget
estimate covers all costs associated with the tasks, materials, and meetings described in the Scope.
Specifically, it includes EPS attendance at up to three meetings with the client and one presentation to City
Council, as well as preparation of a Technical Report. Additional tasks or meetings requested by the client
will be billed on a time-and-materials basis at our standard hourly rates. Charges for EPS time are based
on the amount of time actually spent. Invoices will be submitted monthly and are payable upon receipt.
STAFF
Walter Kieser, Managing Principal at EPS, will serve as the Principal-in-Charge for this project. Mr. Kieser
wil provide overall guidance and will be available for selected public presentations.
Nicole Brown, Associate, will serve as the Project Manager of this effort and will be assisted by Kelly Flynn
and other EPS staff as needed for technical support. As Project Manager, Ms. Brown will be responsible
for the day-to-day research and analytical effort and will be available for selected team meetings.
Kelly FIynn, Research Analyst, will provide ongoing technical support, and will assist with various research
and analytical tasks for this project. Ms. Flynn will also be available for selected team meetings.
PROJECT SCHEDULE
EPS understands that the City would like to have the fiscal and economic analysis completed as soon as
possible. We therefore propose to complete the tasks described above within 10 weeks of receiving
authorization to proceed. As shown in the schedule provided below, EPS will work on complementary
tasks simultaneously in order to expedite completion of its analysis:
Weeks Weeks Since
Task to Complete Start of Project
EPS Receives Authorization to Proceed 0
1. Project Initiation 1 1
2. Project Description/Market Review 3 4
3. Fiscal Impact Analysis 3 7
4. Economic Impact Analysis 3 7
5. Summary Analysis 3 10
6. Findings and Report Preparation 3 10
Consulting Services Agreement between September 2, 2002
City of Dublin and Economic & Planning Systems Exhibit B Page 1 of 1