HomeMy WebLinkAbout2012/11/06 Item 04CITY COUNCIL
AGENDA STATEMENT
~~~ CITY OF
----- CHUTAVISTA
Item No.• ~ _
Meeting Date: 1116/12
ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT WITH CHABIN
CONCEPTS, INC., IN THE AMOUNT OF SEVENTY FIVE
THOUSAND DOLLARS ($75,000) TO CONDUCT AN ANALYSIS
OF THE CITY'S EXISTING AND POTENTIAL BUSINESS
CLUSTERS AND AUTHORIZING THE CITY MANAGER TO
EXECUTE THE AGREEMENT AND RELATED DOCUMENTS
SUBMITTED BY: ECONOMIC DEVELOPMENT DIRECTORC\\~ \!
PRINCIPAL ECONOMIC DEVELOPMENT SPECIALIST
REVIEWED BY: CITY MANAGER
4/STHS VOTE: YES NO X
SUMMARY
The City of Chula Vista has a variety of positive, geographic, infrastructure, workforce and
customer growth attributes that make it an attractive and competitive location for existing
businesses to thrive and new businesses to locate. However, in spite of its abundant qualities, the
City continues to have ajobs/housing imbalance and does not currently have a sufficient number
of high paying jobs to provide for long term economic stability. In order to determine the range
of options to attack this problem and select the best strategy to reverse this imbalance, staff
recommends that the City retain Chabin Concepts to identify the potential businesses and
business clusters for the City to attract, retain and expand businesses that would create the
greatest number of quality jobs within the City. Further, the analysis will determine the City's
current strengths in attracting those businesses and the business needs that must be addressed to
maximize the City's potential to develop, attract and sustain these quality employers.
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ENVIRONMENTAL REVIEW
The Envirorunental Review Coordinator has reviewed the proposed activity for compliance with
the California Environmental Quality Act (CEQA) and has determined that the activity is not a
"Project" as defined under Section 15378 of the State CEQA Guidelines, therefore, pursuant to
Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no
environmental review is necessary.
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
N/A
DISCUSSION
What a Targeted Jobs/Housing Balance Effort Can Accomplish and What Balance Would
Look Like
Chula Vista has approximately 150,000 residents between 16 and 62 years of age that may be
working full or part time, and approximately 40,000 total jobs. The City also has approximately
79,000 residential dwelling units and at 3.21 average occupancy, the 2°d highest household size
in the region. Having an adequate number ofjobs at the right pay scales will:
• Promote full employment
• Provide robust employment options for current and future generations
• Promote residential occupancy rates at or above regional average
• Support property value stability and equity growth
• Drive the variety of retail goods and services offered in the community
• Drive the development of selected industries and the supply chain that create employment
with salaries adequate to support the volume and cost of Ciry housing and retail offering,
• Build a stable retail and property tax revenue base, the top funding sources for providing
the municipal services required to maintain a vibrant city and the quality of life our
residents and businesses desire, and
• Develop a sustainable level of tax revenues that are commensurate with median
household income
Historic and Demograyhic Background
Chula Vista is located at the center of one of the richest cultural, economic and environmentally
diverse zones in the United States. The City has a population of approximately 250,000, and is
the second largest city in San Diego County, the 14th largest city in California and the 76`x'
largest City in the United States. Despite the City's size and future growth (320,000 estimated
build-out population) Chula Vista continues to have ajobs/housing imbalance and does not
currently have sufficient high paying jobs to provide for long term economic stability.
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Chula Vista's more than 50 square miles provide local residents and visitors with a variety of
natural resources and quality infrastructure that is unparalleled in a region known for its
environmental diversity and attractions. Businesses can reach almost 3 million people and
thousands of other businesses from Tijuana to downtown San Diego, deliver their products and
acquire manufacturing feedstock using the freeways that traverse the City and provide
convenient access to our commercial and industrial areas (I-5, I-805 and SR 54 freeways and the
SR 125 toll road). The community is also served by the 10`h Avenue Marine Terminal, truck and
rail connections, two international airports, one cargo airport and two international border
crossings all within ten miles of the heart of Chula Vista.
When incorporated in 1911, the City was primarily an agricultural town. During WWII, Rohr
Aircraft Corporation relocated to Chula Vista, and employed 9,000 workers in the azea at the
height of its wartime production. Today, while there aze several large multi-national corporations
operating in Chula Vista, including United Technologies (Goodrich), Raytheon, Hitachi,
Leviton, DNP and Nypro, the azea is primarily comprised of small businesses.
In recent years, the City has been recognized in the State and internationally as a leader in energy
efficiency, renewable energy and sustainable development implementation and policy
development. The City has won several awazds in this regard, including the ICLEI Five Star
climate award and the California Sustainable Energy Award. As the City moves forward, it will
look to increase economic opportunities that build upon this environmental leadership role.
As the 7`h fastest growing city in the nation, with a population over 225,000 in 2006 Chula Vista
was one of the first cities to feel the severe impacts of the recession. The impacts included a
significant number of foreclosed properties per year during the first few years of the recession,
and significant City budget deficits and staffing reductions. Chula Vista is just beginning to see
new development, increased sales tax and housing sales as the first signs of a recovery. The
recent change in economic reality has provided a framework to re-set priorities, align resources,
and guide day-to-day work citywide. City leadership understands the importance of a robust
economy to successfully meet the municipal demands of existing residents and businesses, future
growth and ensuring economic and environmental sustainability
Past Economic Plans
There have been two major strategic economic development planning efforts in recent years. In
2003, the Chula Vista City Council adopted a comprehensive Economic Development Strategy.
In 2006, the City adopted an Economic Development Element as part of the General Plan
comprehensive update. These two planning documents have been utilized as a basis for the
City's recent business attraction, retention and expansion efforts.
Future Projects and Opportunities
Currently, there are three major long-term development projects in the City's future. The Chula
Vista Baytront Master Plan will facilitate the development of 550 acres of resort hotels, a
convention center, shopping and dining options, and over 200 acres of parks and open space
along San Diego Bay. In the Otay Ranch community, there aze two projects of note. The
Millenia development, a Smart Growth urban center will consist of 3,000 condominiums and
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townhouses, and 3.4 million square feet of commercial space (office, hotel, retail and civic
space). The Otay Ranch will also be home to the University Park and Research Center (UPRC).
The City has negotiated agreements to acquire approximately 375 acres of developable land that
will be the site of higher education and research facilities, and a regional technology park. The
UPRC will serve as a national model of sustainable and efficient land use, infrastructure and
facilities.
The City needs five basic outcomes from the research to be performed by Chabin Concepts in
order to ensure success. This includes:
• Identification of a strategy to expand and recruit employers that provide quality local jobs
that raise Chula Vista's per capita and/or median household income to at least the top
33% in the county;
• The infrastructure, policies and practices needed to identify, attract and retain those
employers;
• The commitment from local residential, commercial, industrial and institutional
consumers to proportionally reinvest in their community through a quality service and
buy-local effort, and the policy incentives to initiate these commitments;
• The lessons learned from other regional business cluster successes and failures that can
guide Chula Vista's successful efforts to increase capacity for expansion and growth; and
• Identify what additional questions, if any, should the City be asking to pinpoint the
answers necessary to ensure the City's economic success.
The City seeks to update the economic strategy and action steps to meet or solve these needs by
determining the following:
A. What are the current businesses, sectors, clusters, and trends in the San Diego/Northern
Baja California Region (Region), the nation and the world? How does Chula Vista fit into
these current trends and how should it affect the plan?
B. How can Chula Vista take advantage of and complement its regional resources in the
short and long-term?
C. What are the businesses/sectors/clusters that aze emerging and locating in the Region
(historical, regional and emerging)? What makes other regional business clusters
successful and which of their experiences and lessons translates to potential Chula Vista
success?
D. What are the underserved areas of quality employment in the Region that can thrive in
Chula Vista given its central location, available land, housing, infrastructure and capacity
to address the business needs referenced above?
E. What types of quality employment-producing businesses/sectors/clusters are the "best,"
fit for Chula Vista?
F. How can complementing thriving regional trends benefit the development of Chula
Vista's strategic economic development and the expansion of quality employment?
G. What are the business and quality employment opportunities that fill in the supply chain
for high-tech/bio-tech, manufacturing and other regional industry and superior
employment trends?
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H. Which are the industries and businesses that can benefit from collaboration with the
available land and development of the University Park and Research Center as well as
other development areas established by the City?
I. Which are the business categories that are the best fit for developing the beginning of one
or more quality job producing business clusters?
J. Identify the next steps and draft a timeline that reflects a sense of importance and the
practical limitations of economic realities in the City.
To undertake this work, the City issued a Request for Proposals. The City contacted local,
national and international companies that might have interest in performing such a study. An
interview panel (Panel) consisting of City staff, and representatives from the Chamber of
Commerce, the South County Economic Development Council and the San Diego Regional
Economic Development Corporation reviewed the five proposals that were submitted and
interviewed the top three candidates. While all three firms were qualified to perform the work,
the Panel and staff recommended Chabin Concepts to perform the work.
Chabin Concepts, an economic development-consulting firm founded by Audrey Taylor in 1989,
specializes in strategic planning, marketing and prospect management. For seventeen years
Chabin Concepts has provided comprehensive economic development services to over 200
communities throughout the United States. Chabin will be joined by sub-consultants Keyser
Marston & Associates (Real Estate Market Development), Austin Consulting (corporate site
selection), Applied Economics (economic modeling) and Research on Investment (lead
generation). The team has combined over 150 years of experience working with governmental
agencies, non-profits, utilities and over 600 corporate facility location assignments. The team
includes four U.S. based companies and a Canadian firm. Chabin, Keyser Marston and Applied
Economics have done extensive work in the San Diego/Baja region, with Keyser Marston
located in San Diego to provide a local presence and perspective on the opportunities as well as
challenges facing the City. Chabin, Applied Economics and ROI have also conducted "border-
related" analysis for local agencies and governments along the border with Mexico.
Next Steros
• Return to City Council with the range of identified options and a recomrended business
cluster/quality Job Development Strategy and a budget to implement that Strategy:
o Identify the budget and resources to provide the tools to existing local business
with the capacity to transform themselves into major quality employment
industries.
o Identify any remaining gaps in the industry sectors that are best suited to develop
quality jobs in Chula Vista, and the resource and budget needed to attract those
businesses and quality jobs to the City
DECISION-MAKER CONFLICTS:
Staff has reviewed the decision contemplated by this action and has determined that it is not site-
specific and consequently, the 500-foot rule found in California Code of Regulations Section
18704.2(a)(1) is not applicable to this decision. Staff is not independently aware, nor has Staff
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been informed by any Ciry Councilmember, of any other fact that may constitute a basis for a
decision-maker conflict of interest in this matter.
CURRENT YEAR FISCAL IMPACT
The contract with Chabin Concepts is in the amount of $75,000. The Fiscal Year 13 Budget
includes funding for this project. It is anticipated that $35,000 of the costs will be reimbursed
through San Diego Partnership Program Budget and the remaining $40,000 funding will come
from the City's General Fund.
ONGOING FISCAL IMPACT
The purpose of this analysis is to identify those potential businesses and business clusters for the
City to attract, retain and expand businesses that would create the greatest number of quality jobs
within the City. The successful implementation of the strategy identified by Chabin will result in
new and expanded businesses, as well as new additional quality jobs. The additional businesses
and jobs will indirectly result in positive financial impact to the City in the form of new revenues
and taxes.
In addition, the "Next Steps" section above states that staff will return to the Council with a
range of options to carry out the recommended business cluster/quality job development strategy.
The resources to carry out the implementation efforts are unlalown at this time.
ATTACHMENTS
Two-Party Agreement
Prepared by.' Craig Ruiz, Principal Economic Development Specialist, Economic Development/Administration
4-6
COUNCIL RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT WITH
CHABIN CONCEPTS, INC., IN THE AMOUNT OF SEVENTY
FIVE THOUSAND DOLLARS ($75,000) TO CONDUCT AN
ANALYSIS OF THE CITY'S EXISTING AND POTENTIAL
BUSINESS CLUSTERS AND AUTHORIZING THE CITY
MANAGER TO EXECUTE THE AGREEMENT AND
RELATED DOCUMENTS
WHEREAS, in 2003 the City adopted an Economic Development Strategy with the goal
of ensuring the long-term vitality of the local economy; and
WHEREAS, the City solidified this goal with the development of goals and policies
contained in the Economic Development Element of the City's General Plan; and
WHEREAS, the effects of the recent global recession have severely reduced the City's
revenues and impacted the City's ability to provide services for its citizens; and
WHEREAS, the majority of the City's workforce is employed outside of the City of
Chula Vista; and
WHEREAS, the City has and continues to pursue long term economic development
opportunities with the ultimate construction of the University Park and Research Center and the
Bayfront Master Plan; and
WHEREAS, the City seeks to retain a consultant to identify the potential businesses and
business clusters for the City to attract, retain and expand that would create the greatest number
of quality jobs within the City; and
WHEREAS, in August of 2012, the City of Chula Vista Economic Development
Department issued a Request for Proposals seeking consultants to develop and conduct a
Business Cluster Analysis for the City; and
WHEREAS, the Request for Proposals Review Panel reviewed the qualifications of the 5
respondents and interviewed the top 3 firms; and
WHEREAS, based upon the review of the qualifications and consultant interviews the
Request for Proposals Review Panel recommends that Chabin Concepts, Inc. be selected to
conduct the Business Cluster Analysis; and
WHEREAS, the City seeks to select Chabin Concepts, Inc., (Consultant) to perform the
work contemplated by the scope of work attached to the subject agreement; and
WHEREAS, Consultant warrants and represents that it is experienced and staffed in a
manner such that it can deliver the services required of Consultant to the City in accordance with
the time frames and the terms and conditions of the subject Agreement.
4-7
Resolution No.
Page 2
NOW, THEREFORE BE IT RESOLVED, the City Council of the City of Chula Vista
does hereby approve the subject agreement with Chabin Concepts, Inc., in the amount of Seventy
Five Thousand Dollars ($75,000) to conduct an analysis of the City's existing and potential
business clusters and authorizes the City Manager to execute the subject agreement and related
documents.
Presented by
Gary Halbert, AICP, PE
Assistant City Manager/Director of
Development Services
Approved as to form by
y Glen o ins _
'~~'~ City Attorney
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Agreement between
City of Chula Vista
and
Chabin Concepts, Inc.,
To Conduct a Business Cluster Analysis
This agreement (Agreement), effective November 1, 2012, is between the City-related entity
whose name and business form is indicated on Exhibit A, Paragraph 2, (City), and the entity
whose name, business form, place of business and telephone numbers are indicated on Exhibit A,
Paragraphs 4 through 6, (Consultant), and is made with reference to the following facts:
RECITALS
WHEREAS, in 2003 the City adopted an Economic Development Strategy with the goal
of ensuring the long-term vitality of the local economy; and
WHEREAS, the City solidified this goal with the development of goals and policies
contained in the Economic Development Element of the City's General Plan; and
WHEREAS, the effects of the recent global recession have severely reduced City's
revenues and impacted the City's ability to provide services for its citizens; and
WHEREAS, the City has and continues to pursue long term economic development
opportunities with the ultimate construction of the University Park and Research Center and the
Bayfront Master Plan; and
WHEREAS, the majority of the City's workforce is employed outside of the City of
Chula Vista; and
WHEREAS, The City seeks to retain a consultant to identify the potential businesses and
business clusters for the City to attract, retain and expand that would create the greatest number
of quality jobs within the City; and
WHEREAS, in August of 2012, the City's Economic Development Department issued a
Request for Proposals seeking consultants, to develop and conduct a Business Cluster Analysis
for the City; and
WHEREAS, a Request for Proposals Review Panel reviewed the qualifications of the 5
respondents and interviewed the top 3 firms; and
WHEREAS, based upon the review of the qualifications and consultant interviews the
Request for Proposals Review Panel recommends that Chabin Concepts, Inc. be selected to
conduct the Business Cluster Analysis; and
WHEREAS, the City seeks to select Chabin Concepts, Inc., (Consultant) to perform the
work contemplated by the scope of work attached hereto; and
Tao Parry Agreeixent Belweeu the Clry of CbaW ~Ista aed Clmbiu Cmmepts bm. jor a Busiuess CWsfer Aua[ysis_
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4-9
WHEREAS, Consultant warrants and represents that it is experienced and staffed in a
manner such that it can deliver the services required of Consultant to the City in accordance with
the time frames and the terms and conditions of this Agreement.
[End of Recitals. Next Page Starts Obligatory Provisions.]
Two Przrry Agreemee¢ Between flee Cit)+ of Gruln L <sta and Chabin Concepts lne. for n Business C[usler Analysis_
Page 2
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~BLiGATORY PROVISIONS PAGES
NOW, THEREFORE, for valuable consideration the City and Consultant do hereby mutually
agree as follows:
All of the Recitals above are incorporated into this Agreement by this reference.
ARTICLE I. CONSULTANT'S OBLIGATIONS
A. General
1. General Duties. Consultant shall perform all of the services described on Exhibit A,
Paragraph 7 (General Duties).
2. Scope of Work and Schedule. In performing and delivering the General Duties,
Consultant shall also perform the services, and deliver to City the "Deliverables"
described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule," according
to, and within the time frames set forth in Exhibit A, Paragraph 8, time being of the
essence of this agreement. The General Duties and the work and Deliverables required in
the Scope of Work and Schedule shall be referred to as the "Defined Services." Failure to
complete the Defined Services by the times indicated does not, except at the option of the
City, terminate this Agreement.
a. Reductions in Scope of Work. City may independently, or upon request from
Consultant, from time to time, reduce the Defined Services to be performed by the
Consultant under this Agreement. Upon doing so, City and Consultant agree to meet
in good faith and confer for the purpose of negotiating a corresponding reduction in
the compensation associated with the reduction.
b. Additional Services. In addition to performing the Defined Services, City may
require Consultant to perform additional consulting services related to the Defined
Services (Additional Services), and upon doing so in writing, if they are within the
scope of services offered by Consultant, Consultant shall perform same on a time and
materials basis at the rates set forth in the "Rate Schedule" in Exhibit A,
Paragraph 10(C), unless a separate fixed fee is otherwise agreed upon. All
compensation for Additional Services shall be paid monthly as billed.
3. Standard of Care. The Consultant expressly warrants that the work to be performed
pursuant to this Agreement, whether Defined Services or Additional Services, shall be
performed in accordance with the standard of care ordinarily exercised by members of
the profession currently practicing under similar conditions and in similar locations.
a. No Waiver of Standard of Care. Where approval by City is required, it is understood
to be conceptual approval only and does not relieve the Consultant of responsibility
for complying with all laws, codes, industry standards, and liability for damages
caused by negligent acts, errors, omissions, noncompliance with industry standards,
or the willful misconduct of the Consultant or its subcontractors.
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Twa Pnrp~ Agreen+ent Between the City of Chuln Vistn and Chabin Concepts G¢e jor n Business Cluster Analysis-
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B. Application of Laws. Should a federal or state law pre-empt a local law, or regulation, the
Consultant must comply with the federal or state law and implementing regulations. No
provision of this Agreement requires the Consultant to observe or enforce compliance with
any provision, perform any other act, or do any other thing in contravention of federal, state,
territorial, or local law, regulation, or ordinance. If compliance with any provision of this
Agreement violates or would require the Consultant to violate any law, the Consultant agrees
to notify City immediately in writing. Should this occur, the City and the Consultant agree
that they will make appropriate arrangements to proceed with or, if necessary, amend or
terminate this Agreement, or portions of it, expeditiously.
1. Subcontractors. Consultant agrees to take appropriate measures necessary to ensure that
all participants utilized by the Consultant to complete its obligations under this
Agreement, such as subcontractors, comply with all applicable laws, regulations,
ordinances, and policies, whether federal, state, or local, affecting Project
implementation. In addition, if a subcontractor is expected to fulfill any responsibilities of
the Consultant under this Agreement, the Consultant shall ensure that the subcontractor
carries out the Consultant's responsibilities as set forth in this Agreement.
C. Insurance
1. General. Consultant must procure and maintain, during the period of performance of this
Agreement, and for twelve months after completion, policies of insurance from insurance
companies to protect against claims for injuries to persons or damages to property that
may azise from or in connection with the performance of the work under this Agreement
and the results of that work by the Consultant, his agents, representatives, employees or
subcontractors, and provide documentation of same prior to commencement of work.
2. Minimum Scone of Insurance. Coverage must be at least as broad as:
a. CGL. Insurance Services Office Commercial General Liability coverage (occurrence
Form CG0001).
h. Auto. Insurance Services Office Form Number CA 0001 covering Automobile
Liability, Code I (any auto).
c. WC. Workers' Compensation insurance as required by the State of California and
Employer's Liability Insurance.
d. E&O. Professional Liability or Errors & Omissions Liability insurance appropriate to
the Consultant's profession. Architects' and Engineers' coverage is to be endorsed to
include contractual liability.
3. Minimum Limits of Insurance. Consultant must maintain limits no less than those
included in the table below:
Two Party Agreement Between the City of Cbula Vista mtd Cbabin Concepts lne. for a Business CWster Analysis,
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4-12
i. General Liability: $1,000,000 per occurrence for bodily injury, personal injury,
(Including (including death), and property damage. If Commercial General
operations, Liability insurance with a general aggregate limit is used, either
products and the general aggregate limit must apply separately to this
completed Project/location or the general aggregate limit must be twice the
operations, as required occurrence limit.
applicable)
ii. Automobile $1,000,000 per accident fox bodily injury, including death, and
Liability: property damage.
iii. Workers' Statutory
Compensation $1,000,000 each accident
Employer's $1,000,000 disease-policy limit
Liability: $1,000,000 disease-each em loyee
iv. Professional $1,000,000 each occurrence
Liability or Errors
& Omissions
Liability:
4. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must
be declared to and approved by the City. At the option of the City, either the insurer will
reduce or eliminate such deductibles or self-insured retentions as they pertain to the City,
its officers, officials, employees and volunteers; or the Consultant will provide a financial
guarantee satisfactory to the City guaranteeing payment of losses and related
investigations, claim administration, and defense expenses.
5. Other Insurance Provisions. The general liability, automobile liability, and where
appropriate, the worker's compensation policies are to contain, or be endorsed to contain,
the following provisions:
a. Additional Insureds. City of Chula Vista, its officers, officials, employees, agents,
and volunteers are to be named as additional insureds with respect to all policies of
insurance, including those with respect to liability arising out of automobiles owned,
leased, hired or borrowed by or on behalf of the Consultant, where applicable, and,
with respect to liability arising out of work or operations performed by or on behalf of
the Consultant, including providing materials, parts or equipment furnished in
connection with such work or operations. The general liability additional insured
coverage must be provided in the form of ail endorsement to the Consultant's
insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement
must not exclude Products/Completed Operations coverage.
b. Primary Insurance. The Consultant's General Liability insurance coverage must be
primary insurance as it pertains to the City, its officers, officials, employees, agents,
and volunteers. Any insurance or self-insurance maintained by the City, its officers,
officials, employees, or volunteers is wholly separate from the insurance of the
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Two Party Agreemrn(Be(ween Nre City of Chuln vista and Chnbin Concepts L:c. for a Business Cluster Analysis
4-13
Consultant and in no way relieves the Consultant from its responsibility to provide
insurance.
c. Cancellation. The insurance policies required by this Agreement shall not be canceled
by either party, except after thirty days' prior written notice to the City by certified
mail, return receipt requested. The words "will endeavor" and "but failure to mail
such notice shall impose no obligation or liability of any kind upon the company, its
agents, or representatives" shall be deleted from all certificates.
d. Active Negligence. Coverage shall not extend to any indemnity coverage for the
active negligence of the additional insureds in any case where an agreement to
indemnify the additional insured would be invalid under Subdivision (b) of Section
2782 of the Civil Code.
e. Waiver of Subrogation. Consultant's insurer will provide a Waiver of Subrogation in
favor of the City for each required policy providing coverage for the term required by
this Agreement.
6. Claims Forms. If General Liability, Pollution and/or Asbestos Pollution Liability and/or
Errors & Omissions coverage are written on a claims-made form:
a. Rehm Date. The "Retro Date" must be shown, and must be before the date of the
Agreement or the beginning of the work required by the Agreement.
b. Maintenance and Evidence. Insurance must be maintained and evidence of insurance
must be provided for at least five years after completion of the work required by the
Agreement.
c. Cancellation. If coverage is canceled or non-renewed, and not replaced with another
claims-made policy form with a "Retro Date" prior to the effective date of the
Agreement, the Consultant must purchase "extended reporting" coverage for a
minimum of five years after completion of the work required by the Agreement.
d. Copies. A copy of the claims reporting requirements must be subn9itted to the City
for review.
7. Acceptability of Insurers. Insurance is to be placed with licensed insurers admitted to
transact business in the State of California with a current A.M. Best's rating of no less
than A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the
State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M.
Best's rating of no less than A X. Exception may be made for the State Compensation
Fund when not specifically rated.
8. Verification of Coverage. Consultant shall furnish the City with original certificates and
amendatory endorsements effecting coverage required by Section LC. of this Agreement.
The endorsements should be on insurance industry forms, provided those endorsements
Two Perry Agreenrent Between the City ojChu[a ism and Gmbin Concepts Inc for n Businus Cluster dnalysis_
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or policies conform to the requirements of this Agreement. All certificates and
endorsements are to be received and approved by the City before work commences. The
City reserves the right to require, at any time, complete, certified copies of all required
insurance policies, including endorsements evidencing the coverage required by these
specifications.
9. Subcontractors. Consultant must include all subconsultants as insureds under its policies
or furnish separate certificates and endorsements for each subconsultant. All coverage for
subconsultants is subject to all of the requirements included in these specifications.
10. Not a Limitation of Other Obligations. Insurance provisions under this Article shall not
be construed to limit the Consultant's obligations under this Agreement, including
Indemnity.
D. Security for Performance
1. Performance Bond. In the event that Exhibit A, at Paragraph 18, indicates the need for
Consultant to provide a Performance Bond (indicated by a check mark in the
parenthetical space immediately preceding the subparagraph entitled "Performance
Bond"), then Consultant shall provide to the City a performance bond, in the amount
indicated at Exhibit A, Paragraph 18, in the form prescribed by the City and by such
sureties which are authorized to transact such business in the State of California, listed as
approved by the United States Department of Treasury Circular 570,
http://www.fms.treas.gov/c570, and whose underwriting limitation is sufficient to issue
bonds in the amount required by the Agreement, and which also satisfy the requirements
stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise
by laws or regulations. All bonds signed by an agent must be accompanied by a certified
copy of such agent's authority to act. Surety companies must be duly licensed or
authorized in the jurisdiction in which the Project is Located to issue bonds for the limits
so required. Form must be satisfactory to the Risk Manager or City.
2. Letter of Credit. In the event that Exhibit A, at Paragraph 18, indicates the need for
Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical
sj~ace immediately preceding the subparagraph entitled "Letter of Credit"), then
Consultant shall provide to the City an irrevocable letter of credit callable by the City at
its unfettered discretion by submitting to the bank a letter, signed by the City Manager,
stating that the Consultant is in breach of the terms of this Agreement. The letter of
credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk
Manager or City Attorney which amount is indicated in the space adjacent to the term,
"Letter of Credit," in Exhibit A, Paragraph 18.
3. Other Security. In the event that Exhibit A, at Paragraph 18, indicates the need for
Consultant to provide security other than a Performance Bond or a Letter of Credit
(indicated by a check mark in the parenthetical space immediately preceding the
subparagraph entitled "Other Security"), then Consultant shall provide to the City such
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other security therein listed in a form and amount satisfactory to the Risk Manager or
City Attorney.
E. Business License. Consultant agrees to obtain a business license from the City and to
otherwise comply with Title 5 of the Chula Vista Municipal Code.
ARTICLE IL CITY OBLIGATIONS
A. Consultation and Cooperation. City shall regularly consult the Consultant for the purpose
of reviewing the progress of the Defined Services and Schedule, and to provide direction and
guidance to achieve the objectives of this Agreement. The City shall allow Consultant access
to its office facilities, files and records, as deemed necessary and appropriate by the City,
throughout the term of this Agreement. In addition, City agrees to provide the materials
identified at Exhibit A, Paragraph 9, with the understanding that delay in the provision of
those materials beyond thirty days after authorization to proceed, shall constitute a basis for
the justifiable delay in the Consultant's performance.
B. Compensation.
Following Receipt of Billing. Upon receipt of a properly prepared bill from Consultant,
submitted to the City as indicated in Exhibit A, Paragraph 17, but in no event more
frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 17,
City shall compensate Consultant for all services rendered by Consultant according to the
terms and conditions set forth in Exhibit A, Paragraph 10, adjacent to the governing
compensation relationship indicated by a "checkmark" next to the appropriate
arrangement, subject to the requirements for retention set forth in Paragraph 18 of
Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in
Exhibit A, Paragraph 11.
2. Supporting Information. Any billing submitted by Consultant shall contain sufficient
information as to the propriety of the billing, including properly executed payrolls, time
records, invoices, contracts, or vouchers describing in detail the nature of the charges to
the Project in order to permit the City to evaluate that the amount due and payable is
proper, and such billing shall specifically contain the City's account number indicated on
Exhibit A, Paragraph 17(C) to be charged upon making such payment.
3. Exclusions. In determining the amount of the compensation City will exclude any cost:
1) incurred prior to the effective date of this Agreement; or 2) arising out of or related to
the errors, omissions, negligence or acts of willful misconduct of the Consultant, its
agents, employees, or subcontractors.
a. Errors and Omissions. In the event that the City Administrator determines that
the Consultant's negligence, errors, or omissions in the performance of work
under this Agreement has resulted in expense to City greater than would have
resulted if there were no such negligence, errors, omissions, Consultant shall
reimburse City for any additional expenses incurred by the City. Nothing in this
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Two Parry Agreement Belweea the City of Chula Vistn and Chabin Concepts lac jor a Business Cluster Ana/ysis_
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paragraph is intended to limit City's rights under other provisions of this
Agreement.
4. Payment Not Final Approval. The Consultant understands and agrees that payment to the
Consultant for any Project cost does not constitute a City final decision about whether
that cost is allowable and eligible for payment under the Project and does not constitute a
waiver of any violation of Consultant of the terms of the Agreement. The Consultant
acknowledges that City will not make a final determination about the eligibility of any
cost until the final payment has been made on the Project or the results of an audit of the
Project requested by the City has been completed, whichever occurs latest. If City
determines that the Consultant is not entitled to receive any portion of the compensation
due or paid, City will notify the Consultant in writing, stating its reasons. The Consultant
agrees that Project closeout will not alter the Consultant's responsibility to return any
funds due City as a result of later refunds, corrections, or other similar transactions; nor
will Project closeout alter the right of City to disallow costs and recover funds provided
for the Project on the basis of a later audit or other review.
a. Consultant's Obligation to Pay. Upon notification to the Consultant that specific
amounts are owed to City, whether for excess payments or disallowed costs, the
Consultant agrees to remit to City promptly the amounts owed, including applicable
interest.
ARTICLE III. ETHICS
A. Financial Interests of Consultant
1. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A,
Paragraph 14, as an "FPPC filer," Consultant is deemed to be a "Consultant" for the
purposes of the Political Reform Act conflict of interest and disclosure provisions, and
shall report economic interests to the City Clerk on the required Statement of Economic
Interests in such reporting categories as are specified in Paragraph 14 of Exhibit A, or if
none are specified, then as determined by the City Attorney.
2. No Participation in Decision. Regardless of whether Consultant is designated as an FPPC
Filer, Consultant shall not make, or participate in making or in any way attempt to use
Consultant's position to influence a govenunental decision in which Consultant knows or
has reason to know Consultant has a financial interest other than the compensation
promised by this Agreement.
3. Search to Determine Economic Interests. Regardless of whether Consultant is designated
as an FPPC Filer, Consultant warrants and represents that Consultant has diligently
conducted a search and inventory of Consultant's economic interests, as the term is used
in the regulations promulgated by the Fair Political Practices Commission, and has
determined that Consultant does not, to the best of Consultant's knowledge, have an
economic interest which would conflict with Consultant's duties under this Agreement.
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4. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is
designated as an FPPC Filer, Consultant further warrants and represents that Consultant
will not acquire, obtain, or assume an economic interest during the term of this
Agreement which would constitute a conflict of interest as prohibited by the Fair Political
Practices Act.
5. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated
as an FPPC Filer, Consultant further warrants and represents that Consultant will
immediately advise the City Attorney if Consultant learns of an economic interest of
Consultant's that may result in a conflict of interest for the purpose of the Fair Political
Practices Act, and regulations promulgated thereunder.
6. ~ecific Warranties Against Economic Interests. Consultant warrants, represents and
agrees that:
a. Neither Consultant, nor Consultant's immediate family members, nor Consultant's
employees or agents (Consultant Associates) presently have any interest, directly or
indirectly, whatsoever in any property which may be the subject matter of the Defined
Services, or in any property within 2 radial miles From the exterior boundaries of any
property which may be the subject matter of the Defined Services, (Prohibited
Interest), other than as listed in Exhibit A, Paragraph 14.
b. No promise of future employment, remuneration, consideration, gratuity or other
reward or gain has been made to Consultant or Consultant Associates in connection
with Consultant's performance of this Agreement. Consultant promises to advise City
of any such promise that may be made during the Term of this Agreement, or for
twelve months thereafter.
c. Consultant Associates shall not acquire any such Prohibited Interest within the Term
of this Agreement, or for twelve months after the expiration of this Agreement,
except with the written permission of City.
d. Consultant may not conduct or solicit any business for any party to this Agreement,
or for any third 'party that may be in conflict with Consultant's responsibilities under
this Agreement, except with the written permission of City.
IV. LIQUIDATED DAMAGES
A. Application of Section. The provisions of this section apply if a Liquidated Damages Rate
is provided in Exhibit A, Paragraph 13.
1. Estimating Damages. It is acknowledged by both parties that time is of the essence in the
completion of this Agreement. It is difficult to estimate the amount of damages resulting
from delay in performance. The parties have used their judgment to arrive at a reasonable
amount to compensate for delay.
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2. Amount of Penalty. Failure to complete the Defined Services within the allotted time
period specified in this Agreement shall result in the following penalty: For each
consecutive calendar day in excess of the time specified for the completion of the
respective work assignment or Deliverable, the Consultant shall pay to the City, or have
withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A,
Paragraph 13 (Liquidated Damages Rate).
3. Request for Extension of Time. If the performance of any act required of Consultant is
directly prevented or delayed by reason of strikes, lockouts, labor disputes, unusual
governmental delays, acts of God, fire, floods, epidemics, freight embargoes, or other
causes beyond the reasonable control of the Consultant, as determined by the City,
Consultant shall be excused from performing that act for the period of time equal to the
period of time of the prevention or delay. In the event Consultant claims the existence of
such a delay, the Consultant shall notify the City's Contract Administrator, or designee, in
writing of that fact within ten calendar days after the beginning of any such claimed
delay. Extensions of time will not be granted for delays to minor portions of work unless
it can be shown that such delays did or will delay the progress of the work.
ARTICLE V. INDEMNIFICATION
A. Defense, Indemnity, and Hold Harmless.
1. General Requirement. Except for liability for Design Professional Services covered
under Article V., Section A.2., Consultant shall defend, indemnify, protect and hold
harmless the City, its elected and appointed officers, agents and employees, from and
against any and all claims, demands, causes of action, costs, expenses, liability, loss,
damage or injury, in law or equity, to property or persons, including wrongful death, in
any manner arising out of or incident to any alleged acts, omissions, negligence, or
willful misconduct of Consultant, its officials, officers, employees, agents, and
contractors, arising out of or in connection with the performance of the Defined Services
or this Agreement. This indemnity provision does not include any claims, damages,
liability, costs and expenses (including without limitations, attorneys fees) arising from
the sole negligence, active negligence or willful misconduct of the City, its officers,
employees. Also covered is liability arising from, connected ~*5ith, caused by or claimed
to be caused by the active or passive negligent acts or omissions of the City, its agents,
officers, or employees which may be in combination with the active or passive negligent
acts or omissions of the Consultant, its employees, agents or officers, or any third party.
2. Design Professional Services. If Consultant provides design professional services, as
defined by California Civil Code section 2782.5, as may be amended from time to time,
Consultant shall defend, indemnify and hold the City, its officials, officers, employees,
volunteers, and agents free and harmless from any and all claims, demands, causes of
action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or
persons, including wrongful death, in any manner arising out of, pertaining to, or relating
to the negligence, recklessness, or willful misconduct of Consultant, its officials, officers,
employees, agents, consultants, and contractors arising out of or in connection with the
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performance of Consultant's services. Consultant's duty to defend, indemnify, and hold
harmless shall not include any claims or liabilities arising from the sole negligence, active
negligence or willful misconduct of the City, its agents, officers or employees. This
section in no way alters, affects or modifies the Consultant's obligations and duties under
this Agreement.
3. Costs of Defense and Award. Included in the obligations in Sections A.1 and A.2, above,
is the Consultant's obligation to defend, at Consultant's own cost, expense and risk, any
and all suits, actions or other legal proceedings, that may be brought or instituted against
the City, its directors, officials, officers, employees, agents and/or volunteers, subject to
the limitations in Sections A.1. and A.2. Consultant shall pay and satisfy any judgment,
award or decree that may be rendered against City or its directors, officials, officers,
employees, agents and/or volunteers, for any and all related legal expenses and costs
incurred by each of them, subject to the limitations in Sections A.1. and A.2.
4. Insurance Proceeds. Consultant's obligation to indemnify shall not be restricted to
insurance proceeds, if any, received by the City, its directors, officials, officers,
employees, agents, and/or volunteers.
5. Declarations. Consultant's obligations under Article V shall not be limited by any prior
or subsequent declaration by the Consultant.
6. Enforcement Costs. Consultant agrees to pay any and all costs City incurs enforcing the
indemnity and defense provisions set forth in Article V.
7. Survival. Consultant's obligations under Article V shall survive the termination of this
Agreement.
ARTICLE VI. TERMINATION OF AGREEMENT
A. Termination for Cause. If, through any cause, Consultant shall fail to fulfill in a timely and
proper manner Consultant's obligations under this Agreement, or if Consultant shall violate
any of the covenants, agreements or stipulations of this Agreement, City shall have the right
' to terminate this Agreement by giving written notice to Consultant of such termination and
specifying the effective date thereof at least five (5) days before the effective date of such
termination. In that event, all finished or unfinished documents, data, studies, surveys,
drawings, maps, reports and other materials prepared by Consultant shall, at the option of the
City, become the property of the City, and Consultant shall be entitled to receive just and
equitable compensation, in an amount not to exceed that payable under this Agreement and
less any damages caused City by Consultant's breach, for any work satisfactorily completed
on such documents and other materials up to the effective date of Notice of Termination.
B. Termination of Agreement for Convenience of City. City may terminate this Agreement
at any time and for any reason, by giving specific written notice to Consultant of such
termination and specifying the effective date thereof, at least thirty (30) days before the
effective date of such termination. In that event, all finished and unfinished documents and
Two Party Agreen~en[ Between the Ciry of Cbu[a Vista and Chabin Concepts lnc. jor a Business Cfuster dnal~iris_
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other materials described hereinabove shall, at the option of the City, become City's sole and
exclusive property. If the Agreement is terminated by City as provided in this paragraph,
Consultant shall be entitled to receive just and equitable compensation, in an amount not to
exceed that payable under this Agreement, for any satisfactory work completed on such
documents and other materials to the effective date of such termination. Consultant hereby
expressly waives any and all claims for damages or compensation arising under this
Agreement except as set forth in this section.
ARTICLE VII. RECORD RETENTION AND ACCESS
A. Record Retention. During the course of the Project and for three (3) years following
completion, the Consultant agrees to maintain, intact and readily accessible, all data,
documents, reports, records, contracts, and supporting materials relating to the Project as City
may require.
B. Access to Records of Consultant and Subcontractors. The Consultant agrees to permit,
and require its subcontractors to permit City or its authorized representatives, upon request,
to inspect all Project work, materials, payrolls, and other data, and to audit the books,
records, and accounts of the Contractor and its subcontractors pertaining to the Project.
C. Project Closeout. The Consultant agrees that Project closeout does not alter the reporting
and record retention requirements of this Agreement.
ARTICLE VIII. PROJECT COMPLETION, AUDIT, AND CLOSEOUT
A. Project Completion. Within ninety (90) calendar days following Project completion or
termination by City, Consultant agrees to submit a final certification of Project expenses and
audit reports, as applicable.
B. Audit of Consultants. Consultant agrees to perform financial and compliance audits the
City may require. The Consultant also agrees to obtain any other audits required by City.
Consultant agrees that Project closeout will not alter Consultant's audit responsibilities. Audit
costs are allowable Project costs.
C. Project Closeout. Project closeout occurs when City notifies the Consultant that City has
closed the Project, and either forwards the final payment or acknowledges that the Consultant
has remitted the proper refund. The Consultant agrees that Project closeout by City does not
invalidate any continuing requirements imposed by the Agreement or any unmet
requirements set forth in a written notification from City
ARTICLE IX. MISCELLANEOUS PROVISIONS
A. Assignability. The services of Consultant are personal to the City, and Consultant shall not
assign any interest in this Agreement, and shall not transfer any interest in the same (whether
by assignment or notation), without prior written consent of City.
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1. Limited Consent. City hereby consents to the assignment of the portions of the Defined
Services identified in Exhibit A, Paragraph 16 to the subconsultants identified as
"Permitted Subconsultants."
B. Ownership, Publication, Reproduction and Use of Material. All reports, studies,
information, data, statistics, forms, designs, plans, procedures, systems and any other
materials or properties produced under this Agreement shall be the sole and exclusive
property of City. No such materials or properties produced in whole or in part under this
Agreement shall be subject to private use, copyrights or patent rights by Consultant in the
United States or in any other country without the express written consent of City. City shall
have unrestricted authority to publish, disclose (except as maybe limited by the provisions of
the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in
part, any such reports, studies, data, statistics, forms or other materials or properties produced
under this Agreement.
C. Independent Contractor. City is interested only in the results obtained and Consultant shall
perform as an independent contractor with sole control of the manner and means of
performing the services required under this Agreement. City maintains the right only to
reject or accept Consultant's work products. Consultant and any of the Consultant's agents,
employees or representatives are, for all purposes under this Agreement, independent
contractors and shall not be deemed to be employees of City, and none of them shall be
entitled to any benefits to which City employees are entitled including but not limited to,
overtime, retirement benefits, worker's compensation benefits, injury leave or other leave
benefits. Therefore, City will not withhold state or federal income tax, social security tax or
any other payroll tax, and Consultant shall be solely responsible for the payment of same and
shall hold the City harmless with regard to them.
1. Actions on Behalf of City. Except as City may specify in writing, Consultant shall have
no authority, express or implied, to act on behalf of City in any capacity whatsoever, as
an agent or otherwise. Consultant shall have no authority, express or implied, to bind
City or its members, agents, or employees, to any obligation whatsoever, unless expressly
provided in this Agreement.
2. No Obligations to Third Parties. In connection with the Project, Consultant agrees and
shall require that its agents, employees, subcontractors agree that City shall not be
responsible for any obligations or liabilities to any third party, including its agents,
employees, subcontractors, or other person or entity that is not a party to this Agreement.
Notwithstanding that City may have concurred in or approved any solicitation,
subagreement, or third party contract at any tier, City shall have no obligation or liability
to any person or entity not a party to this Agreement.
D. Administrative Claims Requirements and Procedures. No suit or arbitration shall be
brought arising out of this Agreement, against City unless a claim has first been presented in
writing and filed with City and acted upon by City in accordance with the procedures set
forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be
amended, the provisions of which are incorporated by this reference as if fully set forth
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Two Party Agreement BeOOeeu flee City ojChu/a Prsta rzad Chubin Concepts Lec. jor a Business Cluster Analysis-
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herein, and such policies and procedures used by City in the implementation of same. Upon
request by City, Consultant shall meet and confer in good faith with City for the purpose of
resolving any dispute over the terms of this Agreement.
E. Administration of Contract. Each party designates the individuals (Contract
Administrators) indicated on Exhibit A, Paragraph 12, as that party's contract administrator
who is authorized by the party to represent it in the routine administration of this Agreement.
F. Term. This Agreement shall terminate when the parties have complied with all executory
provisions hereof.
G. Attorney's Fees. Should a dispute arising out of this Agreement result in litigation, it is
agreed that the prevailing party shall be entitled to a judgment against the other for an
amount equal to reasonable attorneys' fees and court costs incurred. The "prevailing party"
shall be deemed to be the party who is awarded substantially the relief sought.
H. Statement of Costs. In the event that Consultant prepares a report or document, or
participates in the preparation of a report or document in performing the Defined Services,
Consultant shall include, or cause the inclusion of, in the report or document, a statement of
the numbers and cost in dollar amounts of all contracts and subcontracts relating to the
preparation of the report or document.
I. Consultant is Real Estate Broker and/or Salesman. If the box on Exhibit A, Paragraph 15
is marked, the Consultant and/or its principals is/are licensed with the State of California or
some other state as a real estate broker or salesperson. Otherwise, Consultant represents that
neither Consultant, nor its principals are licensed real estate brokers or salespersons.
J. Notices. All notices, demands or requests provided for or permitted to be given pursuant to
this Agreement must be in writing. All notices, demands and requests to be sent to any party
shall be deemed to have been properly given or served if personally served or deposited in
the United States mail, addressed to such party, postage prepaid, registered or certified, with
return receipt requested, at the addresses identified in this Agreement as the places of
business for each of the designated parties.
K. Integration. This Agreement, together with any other written document referred to or
contemplated in it, embody the entire Agreement and understanding between the parties
relating to the subject matter hereof. Neither this Agreement nor any provision of it may be
amended, modified, waived or discharged except by an instrument in writing executed by the
party against which enforcement of such amendment, waiver or discharge is sought.
L. Capacity of Parties. Each signatory and party to this Agreement warrants and represents to
the other party that it has legal authority and capacity and direction from its principal to enter
into this Agreement, and that all necessary resolutions or other actions have been taken so as
to enable it to enter into this Agreement.
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M. Governing Law/Venue. This Agreement shall be governed by and construed in accordance
with the laws of the State of California. Any action arising under or relating to this
Agreement shall be brought only in the federal or state courts located in San Diego County,
State of California, and if applicable, the City of Chula Vista, or as close thereto as possible.
Venue for this Agreement, and performance under it, shall be the City of Chula Vista.
(End of page. Next page is signature page.)
Two Party Agreeneent Behveen the City of Chula Vista and Chnbirz Concepts Inc. jor n Busi~tess Clas(er Analysis.
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Signature Page
to
Agreement between
City of Chula Vista and
Chabin Concepts, Inc.,
To conduct a Business Cluster Analysis
IN WITNESS WHEREOF, City and Consultant have executed this Agreement,
indicating that they have read and understood same, and indicate their full and complete consent
to its terms:
City of Chula Vista
By:
James D. Sandoval
City Manager
Attest:
Donna Norris, City Clerk
Approved as to form;
Glen R. Googins, City Attorney
Chabin Concepts, Inc.
sy: l(-1-1z.
(~ Au~yey Taylor
President and CEO
Exhibit List to Agreement: Exhibit A
1i Atmmcy MiduelSfi\Custer (Business) AnalysislAgreemea6':Qtabin?PartyAgrcententtvl(?)}10.10.1?-FINA4doc
Two PwTy .Agreemenf Behveen 1lre Ciry ofChufa Nsfa vtJ Ckabin Concepts Inc jor a Busines's Cltesler Analysis,
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Exhibit A
to
Agreement between
City of Chula Vista
and
Chabin Concepts, Inc.
1. Bffective Date: The Agreement shall take effect upon full execution of the Agreement, as of
the effective date stated on page 1 of the Agreement.
2. City-Related Entity:
(X) City of Chula Vista, a municipal chartered corporation of the State of California
OThe Chula Vista Public Financing Authority, a
OThe Chula Vista Industrial Development Authority, a
OOther: , a [insert business form]
3. Ptaee of Business for City:
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
4. Consultant:
Chabin Concepts, Inc.
5. Business Form of Consultant:
OSole Proprietorship
( )Partnership
(X) Corporation
6. Place of Business, Telephone and Fax Number of Consultant:
Chabin Concepts, Inc.
2515 Ceanothus Avenue, Suite 100
Chico, CA 95973
Phone: 530-345-0364 x 27 `
Fax:530-345-6417
7. General Duties:
Consultant will identify potential businesses and business clusters for the City to attract,
retain and expand that would create the greatest number of quality jobs within the City.
Further, the analysis will determine the City's current strengths in attracting those
businesses and the business needs that must be addressed to maximize the City's
potential to develop, attract and sustain these quality employers, and utilize existing data
and analysis to understand the City's employment and economic context within the
greater San Diego/Northern Baja Region.
8. Scope of Work and Schedule:
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A. Detailed Scope of Work:
Overall Deliverables:
1. Identify existing businesses with growth opportunities,
2. Understand the dynamics of the existing business clusters within the region and their effect
on Chula Vista's opportunity for economic growth,
3. Identify the `best fit' target sectors for attraction,
4. Leverage the existing assets (development, knowledge, policies) to attract key business
sectors and targeted businesses,
5. Ensure Chula Vista's products, programs and policies are competitive in the market place
and create a value proposition to attract new investment, and
6. Provide a strategic roadmap of next steps to launch aresults-oriented recruitment program
Project Tasks
Phase I -Move from Business Clusters to Key Markets & Tareet Businesses
There are multiple tasks in Phase 1 including research, analysis, and interviews.
The "screening process'' will be similar to working through a funnel from the broad national
level driving to the local niche opportunities tied to assets with a very defined outcome of
identification of target markets and prospect businesses (those who have the highest potential for
locating in Chula Vista).
Chula Vista is fortunate that the San Diego Association of Governments (SANDAG) prepares
quality research on the region's clusters and is currently updating the 2006 Traded Clusters
report which identified 16 clusters. A new report should be published by the start of this project.
The 2012 report will most likely capture new clusters such as renewable energy, clean tech,
digital platforms, cyber security and web applications (or similar names).
1. The screening and analysis process will be developed by Applied Economics and
will begin with the most recent SANDAG Traded Clusters Analysis that defines target industries
for the region. For these traded clusters, the Consultant shall look at countywide trends at the 6
digit NAICS code level in terms of employment growth, income growth, and number of
establishments from 2005 to 2010. This data will allow the Consultant to see which clusters are
well established and which are emerging clusters. In addition, to the extent that there are
additional key supply chain industries that are not included in the Traded Clusters, the
Consultant shall identify these industries as well.
2. Next the Consultant shall supplement the county trend data with national
projections of employment and output growth by industry and manufacturing capacity utilization
rates as an indicator of expansion potential. The Consultant shall identify national growth sectors
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which may not be in the regional market but could have potential for west coast expansion. This
screen will allow the Consultant to determine what types of industries have been most successful
in the region in recent years and which ones are likely to hold the best potential for future
growth.
3. Using Chula Vista's business license data, zip code data from County Business
Patterns and other sources, the Consultant shall identify the presence of these industries in Chula
Vista which will provide a target list of existing businesses -growth potential and/or risk
potential which will be used in Phase II for interviews. This screen will help the Consultant to
understand the extent to which these regional Traded Clusters have developed in Chula Vista and
whether there is potential for more (this information will be captured through interviews in Phase
II). This analysis will yield valuable information about what Chula Vista's niche is within the
region, and how the City differentiates itself from the metro area in terms of economic
development.
4. At this point the screening process narrows the list of industry sectors included in
the regional Traded Clusters, along with related suppliers, to those that have 1) the best potential
for future growth, and 2) industries that represent appropriate targets for recruitment for Chula
Vista. Several guidelines for screening and prioritizing industries will be used. These include:
• Thriving growth industries regionally, and industries that are growing at a faster rate
in the region than in the nation as a whole,
• Industries that have above average projected output and employment growth
nationally over the next 10 to 15 years,
• Within manufacturing, industries that have high capacity utilization rates nationally
and are likely to expand in the near term, and
• Firms that provide quality jobs to local residents with wage levels above the City's
median household income.
5. There are two specific focus areas that merit additional research -renewable
energy and border-related opportunities:
Chula Vista is recognized as a leader in renewable energy, energy efficiency, and sustainable
development. The Consultant shall do additional focused research on clean tech industries that
may represent opportunities for the City. The Consultant understands that the planned
University Park and Research Center will provide a location tailored for clean tech industries.
Chula Vista's unique location, only 7 miles from the Mexico border, may offer additional
border-related opportunities, particularly for manufacturing industries that can take advantage of
assembly capabilities and component manufacturing in Mexico. There may also be opportunities
related to information and communications technology which is currently being targeted in
Tijuana through the Baja Innovation and Technology Center.
6. Screens based on secondary data, while important, are only one part of the
business cluster, and target industry analysis. The final step in the screening process is the most
critical and involves matching these industries with the specific business climate assets in Chula
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Vista to identify those businesses that are the best fit overall. The Competitive Advantage
Assessment (Phase II) will be conducted at the same time as the Business Cluster and Target
Business Identification.
Deliverable Phase I-Best Fit Targets:
• Consultant shall provide a list of Business Clusters & Target Industry Businesses
at 6-digit NAICS Code.
• Consultant shall identify industry intelligence for each industry cluster including a
working definition and how the component industries relate to each other.
• Consultant shall identify site factors and occupations that are most important to
each target industry.
• Consultant shall identify source areas and location patterns of industry clusters
nationally.
• Consultant shall determine occupational location quotients to identify areas in
which the City can provide a competitive advantage in terms of workforce - a key
location decision factor in the City's value proposition.
Note during Phase III -Execute Focused Recruitment, Research on Investment (ROI) will use
this data and the competitive assessment to deliver 3-7 Anchor Opportunity Targets for each
industry target.
Phase ITeam -Applied Economics & Chabin Concepts, Inc.
Phase II -Strengthen Competitive Advantage
Phase II of the project is the competitive assessment to define the strengths and weaknesses of
Chula Vista as they relate to a Corporation Location Assessment with special emphasis on the
most critical location decision factors -labor force and real estate.
Austin Consulting, Keyser Marston (KMA), and Chabin Concepts (the "Consultant Team") will
be conducting different elements of this assessment to provide input back to Chula Vista on how
to strengthen its competitive advantage and value proposition to attract businesses.
These tasks will be scheduled to culminate= at the same time so the Team can have meaningful
work sessions with staff on the findings.
1. The assessment will simulate a Corporate Location Search and will begin with
"desk top" research which will include search for cost and non-cost factors important to the
location selection. The Consultant Team shall use a "target industry project" as the basis. This
will help the Consultant Team to identify key information that Chula Vista may need to have
more readily available for those companies doing their analysis prior to contacting the City.
Factors will include but not be limited to:
• Inbound transportation costs • Site & Buildings
• Outbound transportation costs Electric power costs, stability
75va Parry Agreemean Between (fie Cdry of Guela !/Istn mrd C/rnbirt Ca~ecepts Inc. for ~ Business Cluster Ann/ysls,
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• Market Access • Natural gas costs
• Labor costs • State corporate taxes
• Labor quality Local property taxes
• Education and attainment Air quality and waste water
• Training Programs environmental regulations
• Labor management relations • Availability of water, water quality
• Sustainability Programs • Development incentives geared to
industry
2. The second step of a Corporate Location Search is the on-site field investigation
by Site Location Consultant, Austin Consulting. The intent is to have meetings with local
economic development officials, local employers, utility company representatives, workforce
training, technical school administrators, and others involved in local development activities and
to tour the community, and sites/buildings. The field investigation in a Corporate Location
Search determines the ability of a community to satisfy pioject requirements and
communitywide issues, such as, workforce, infrastructure, quality of life and local site/building
issues, such as, availability, one-time cost issues, transportation, competitive utilities, etc.
A community's sustainability plan, although not on the top 10 site factors, has become a leading
consideration when selecting a community. During this phase Austin Consultant shall look at all
factors that affect a location decision.
3. As noted by almost all national organizations, the availability of a quality and
skilled workforce is the number one critical issue for businesses. The Consultant Team shall put
special emphasis on understanding Chula Vista's existing workforce and access to "commuter"
workforce particularly as it relates to industries. The Consultant Team shall include interviews
with:
• Employment Development Department(s)
• Regional Economic Development Organizations
• Workforce Development Entities
• Manpower Agencies
• Education - ROP, Community Colleges, Tech & Vocational Training,
Universities
• Existing Employers
• Review any surveys conducted
This assessment will also be supported by research from Phase I, Occupational Quotient.
4. Along with specific targeted business, developers and real estate brokers are key
targets. They are most often interested in `development' opportunities which can also drive
business location. To ensure this element is captured in the assessment, KMA will review non-
residential real estate market conditions in the City and their impact on the City's ability to
further its economic development goals. Specifically, how do current land and building supply
characteristics position the City within the region with respect to capturing high quality
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Two Parry Agreement Between tke City ojCkula Vista and Chabin Concepts Gtc. jor a Business Cluster Analysis
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employers? How are locations within the City planned for major employment, such as the
Bayfront, Millenia, and University Park and Research Center, perceived on a regional basis?
KMA will provide an overview of the City's non-residential land/buildings market in terms of:
• Available non-residential land supply, location, zoning, and typical market values,
• Non-residential building inventory, condition, location, and typical market
rents/values, and
• Comparison with countywide market conditions.
KMA shall compile this information from third party data sources such as SANDAG's
Employment Lands Inventory (2009), the City's Available Land Inventory (2012), Costar Group
Inc. property sales transaction data, real estate brokerage reports, LoopNet rental listings, etc.
KMA shall also conduct up to six (6) informal surveys of non-residential developers, property
owners, and/or brokers regarding the principal assets and constraints in marketing the City to
major employers. The surveys will address real estate factors contributing to location decisions
by high-tech/bio-tech, research and development (R&D), and manufacturing businesses.
Potential issues include: land supply, infrastructure conditions, City fees, City financing tools or
other assistance, supporting amenities, etc. Survey participants may also identify potential areas
for improvement in terms of City policies.
5. Chabin Concepts shall also conduct interviews with key partners (if not
interviewed in the Corporate Location task) and existing businesses. Chabin Concepts shall also
conduct interviews with up to 6 national and international site location consultants on their
perceptions of Chula Vista.
Deliverable Phase II -Strengthen Competitive Advantage:
• Consultant shall summarize principal strengths and weaknesses of key location factors
from the perspective of regional competition for high quality employment and needs of a
business seeking a location.
• Consultant shall conduct a work session with staff to review strengths and weaknesses
with recommendations on how to address weaknesses and strengths to define a value
proposition for Chula Vista.
Phase II Team -Austin Consulting, Keyser Marston &Chabin Concepts, Inc.
Phase III -Execute Focused Recruitment
Economic development and business recruitment is highly competitive. Site "elimination" is the
proper term for any business location search.
A community's goal is to avoid giving any reason for the company, prospect, or investor to walk
away (as noted in the location selection chart). Not only does a community have to be ready but
there has to be a strategic organizational structure working with existing and new businesses.
Two Parry A,reement Behaeert the Ctiy of Cltuln ~sln and Giabin Concepts /nc. jor n Business Cluster Analysts
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In the last phase the Consultant Team shall review the current tools and materials available to
conduct focused recruitment involving three basic steps:
1. Chabin Concepts shall review current business retention and marketing tools,
including key message platform, marketing materials (maps, brochures, website), top of mind
marketing tactics (media, advertising, outreach), distribution channels and execution strategies.
2. KMA shall review potential financing programs to assist non-residential
developers with infrastructure requirements, e.g., New Markets Tax Credits, Immigrant Investor
Pilot Program (E-5 Visas), Infrastructure Financing Districts, tax revenue sharing, etc.
3. The key to Phase III is the Anchor Opportunity targets. ROI's experience and
expertise is lead generation. ROI has a proprietary database of over one million companies in
North America and Europe. ROI is consistently cleansing the data in this database and adding to
it by acquiring local industry association and other directories. Through their continual
monitoring and evaluating of business prospects in the database they are able to classify business
prospects into one of four lead generation categories - A, B, C and D Level Leads. Lead
generation initiatives span multiple industry sectors in multiple geographic regions.
The "warehouse" of data is invaluable to identifying Anchor Opportunity prospects in the City's
targeted sectors. ROI will review Phase I & II -key assets, resources, distinct competitive
advantages, list of target sectors, projected growth, capacity, and then provide additional research
as needed for leading companies, geographic centers and recent project location of the target
sector.
Through this process ROI will screen and deliver a list of Anchor Opportunity Target Prospects
(3-7 per targeted sector) for the City to begin its recruitment process.
The Anchor Opportunity list will be comprised of companies that can help change better the
opportunities in a community/region, specifically companies that:
• Are recognized worldwide
• Have a loyal Following of suppliers
• Companies that expand based on their clients expansion initiatives
• Create value added jobs '
• Engage with the local colleges and community
• Are trend setters
(An example of an Anchor Opportunity could include companies such as Intel Corporation. As
part of an initiative for Invest in Finland, ROI specifically targeted Intel Corporation so that the
Invest in Finland team could present and promote Finland's assets and opportunities to Intel's
corporate executives. Not only did this result in a 200 person R&D facility expansion into
Finland but it also resulted in subsequent investments by suppliers, competitors and other Intel
followers. The Intel profile was the result of phase two, Competitive Intelligence, which included
targeting hitel's corporate executive to identify potential expansion initiatives and ascertain
Intel's interest in Finland as an investment location. The information originally provided to
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Two Pnrry Agreement Between the Ciry of Chun rrsm mrUC/rubirr Concepts Grc jor a Business Cluster Anul~+sig
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Invest in Finland was a targeted list of major companies within their targeted sectors including;
revenues, number of employees, products/services, areas of operation, synergies with Finland
and the rationale for targeting each firm based on ROI's Opportunity Assessment analysis.)
Deliverable Phase III - Execute Focused Recruitment:
• Consultant shall recommend tools for attracting and closing deals.
• Consultant shall make recommendations for organizational and marketing execution.
• Consultant shall provide a list of Anchor Opportunity Target Prospects.
Phase III Team - KMA, ROI & Chabin Concepts
B. Date for Commencement of Consultant Services:
(X) Same as Effective Date of Agreement
OOther:
C. Dates or Time Limits for Delivery of Deliverables:
Deliverable No. 1: January 31, 2013
Deliverable No. 2: March 1, 2013
Deliverable No. 3: Mav 1, 2013
D. Date for completion of all Consultant services: Mav 1, 2013_.
9. Materials Required to be Supplied by City to Consultant:
A. City Demographic Information (2010)
B. General Plan Economic Update Analysis ((2005)
C. General Plan Economic Development Element (2006)
D. City Economic Development Strategy (2003)
E. SANDAG Traded Clusters Analysis Report (2012)
F. SANDAG Regional Prosperity Study (2008)
G. Available Land Inventory (2012)
H. Department of Finance Employment Data (2012)
I. City Business License Listing (2012)
10. Compensation:
A. (X) Single Fixed Fee Arrangement.
For performance of all of the Defined Services by Consultant as herein required, City shall
pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set
forth below:
Single Fixed Fee Amount: Seventy Five Thousand Dollars ($75,000) payable as follows:
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Tiva Parry Agreemerzt Bebveen Use City of Ckufa Asia acid Clmbiie Concepts Inc jor a Business Cluster Analysis.
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Milestone or Event or Deliverable Amount or Percent of Fixed Fee
(X)1. Interim Monthly Advances. The City shall make interim monthly advances
against the compensation due for each phase on a percentage of completion basis for
each given phase such that, at the end of each phase only the compensation for that
phase has been paid. Any payments made hereunder shall be considered as interest
free loans that must be returned to the City if the Phase is not satisfactorily
completed. If the Phase is satisfactorily completed, the City shall receive credit
against the compensation due for that phase. The retention amount or percentage set
forth in Pazagraph 18 is to be applied to each interim payment such that, at the end of
the phase, the full retention has been held back from the compensation due for that
phase. Percentage of completion of a phase shall be assessed in the sole and
unfettered discretion by the Contracts Administrator designated herein by the City, or
such other person as the City Manager shall designate, but only upon such proof
demanded by the City that has been provided, but in no event shall such interim
advance payment be made unless the Consultant shall have represented in writing that
said percentage of completion of the phase has been performed by the Consultant.
The practice of making interim monthly advances shall not convert this agreement to
a time and materials basis of payment.
B. OPhased Fixed Fee Arrangement.
For the performance of each phase or portion of the Defined Services by Consultant as are
separately identified below, City shall pay the fixed fee associated with each phase of Services,
in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not
commence Services under any Phase, and shall not be entitled to the compensation for a Phase,
unless City shall have issued a notice to proceed to Consultant as to said Phase.
Phase
1.
2.
3.
Fee for Said Phase
O 1. Interim Monthly Advances. The City shall make interim monthly advances
against the compensation due for each phase on a percentage of completion basis for
each given phase such that, at the end of each phase only the compensation for that
phase has been paid. Any payments made hereunder shall be considered as interest
free loans that must be returned to the City if the Phase is not satisfactorily
completed. If the Phase is satisfactorily completed, the City shall receive credit
against the compensation due for that phase. The retention amount or percentage set
forth in Paragraph 18 is to be applied to each interim payment such that, at the end of
the phase, the full retention has been held back from the compensation due for that
phase. Percentage of completion of a phase shall be assessed in the sole and
unfettered discretion by the Contracts Administrator designated herein by the City, or
Two Pnrty Agreement Benoeen Nre City of Cbu/a Cistn and Chabin Concepts Inc jor n Business CGrster Annlysis_
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such other person as the City Manager shall designate, but only upon such proof
demanded by the City that has been provided, but in no event shall such interim
advance payment be made unless the Consultant shall have represented in writing that
said percentage of completion of the phase has been performed by the Consultant.
The practice of making interim monthly advances shall not convert this agreement to
a time and materials basis of payment.
C. OHourly Rate Arrangement
For performance of the Defined Services by Consultant as herein required, City shall pay
Consultant for the productive hours of time spent by Consultant in the performance of said
Services, at the rates or amounts set forth in the Rate Schedule herein below according to the
following terms and conditions:
(1) ONot-to-Exceed Limitation on Time and Materials Arrangement
Notwithstanding the expenditure by Consultant of time and materials in excess of said
Maximum Compensation amount, Consultant agrees that Consultant will perform all of
the Defined Services herein required of Consultant for $
including all Materials, and other "reimbursables" (Maximum Compensation).
(2) OLimitation without Further Authorization on Time and Materials Arrangement
At such time as Consultant shall have incurred time and materials equal to
$ (Authorization Limit), Consultant shall not be entitled to
any additional compensation without further authorization issued in writing and approved
by the City. Nothing herein shall preclude Consultant from providing additional Services
at Consultant's own cost and expense. See Exhibit B for wage rates.
OHourly rates may increase by 6% for services rendered after [month], 20, if delay
in providing services is caused by City.
11. Materials Reimbursement Arrangement
For the cost of out of pocket expenses ,incurred by Consultant in the performance of services
herein required, City shall pay Consultant at the rates or amounts set forth below:
(None, the compensation includes all costs.
O Reports, not to exceed $
O Copies, not to exceed $
O Travel, not to exceed $
O Printing, not to exceed $
() Postage, not to exceed $
O Delivery, not to exceed $
Cost or Rate
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O Outside Services:
O Other Actual Identifiable Direct Costs:
not to exceed $
not to exceed $
12. Contract Administrators:
City: Craig Ruiz
276 Fourth Avenue
Chula Vista, CA 91910
619-691-5248
Consultant: Audrey Taylor
Chabin Concepts, Inc.
2515 Ceanothus Avenue, Suite 100
Chico, CA 95973
Phone: 530-345-0364 x 27
13
Liquidated Damages Rate:
() $ per day.
()Other:
$
14. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest
Code (Chula Vista Municipal Code chapter 2.02):
(X) Not Applicable. Not an FPPC Filer.
O FPPC Filer
OCategory No. 1. Investments, sources of income and business interests.
OCategory No. 2. Interests in real property.
OCategory No. 3. Investments, business positions, interests in real property, and
sources of income subject to the regulatory, permit or licensing authority of the
department administering this .Agreement.
OCategory No. 4. Investments and business positions in business entities and sources of
income that engage in land development, construction or the acquisition or sale of
real property.
OCategory No. 5. Investments and business positions in business entities and sources
of income that, within the past two years, have contracted with the City of Chula
Vista or the City's Redevelopment Agencyto provide services, supplies, materials,
machinery or equipment.
OCategory No. 6. Investments and business positions in business entities and sources of
income that, within the past two years, have contracted with the department
administering this Agreement to provide services, supplies, materials, machinery or
equipment.
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Two Parry Agreement 8e11veen tGe City of CGu(a Vista anr! Chabin Cmrcepts O:c. jor a Business Cluster Analysis,
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OList Consultant Associates interests in real property within 2 radial miles of Project
Property, if any: N/A
15. OConsultant is Real Estate Broker and/or Salesman
16. Permitted Subconsultants:
Keyser Marston
Austin Consulting
Applied Economics
ROI
17. Bill Processing:
A. Consultant's filling to be submitted for the following period of time:
(X) Monthly
OQuarterly
OOther:
B. Day of the Period for submission of Consultant's Billing:
OFirst of the Month
O 15th Day of each Month
(X) End of the Month
OOther:
C. City's Account Number: 09100-6401
18. Security for Performance
Performance Bond, $
Letter of Credit, $_
)Other Security:
Type:
Amount: $
(X) Retention. If this space is checked, then notwithstanding other provisions to the contrary
requiring the payment of compensation to the Consultant sooner, the City shall be entitled
to retain, at their option, either the following "Retention Percentage" or "Retention
Amount" until the City determines that the Retention Release Event, listed below, has
occurred:
(X) Retention Percentage: 10%
ORetention Amount: $
Retention Release Event:
OCompletion of All Consultant Services
OOther:
Twa Party Agreement Between the Clry ofChuln Vista and Chabirt Conrep[s G~c. jor a Business Clus(er AnR[ysis_
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(X) Other: The Retention Amount may be released on a monthly basis provided that
Consultant has performed said monthly services to the sole satisfaction of the Assistant City
Manager/Director of Development Services or his designee.
T+va Pnrty Agreement Benveen the Gty of Chula ~s7a and Chabin Coieceprs Lec. for a Business Cluster Anrsll+sis_
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a-sa
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Pie 20 of the contract paee 4-28 of the agenda item
5. There are threewe specific focus areas that merit additional research- health science.
renewable energy and border-related opportunities:
Chula Vista host two nationaBv reco>?nized health care providers Scripps and Sharp Health and is also
host to University of California health science facilities and a variety of distinguished support and
educational institutions including South Western College PIMA and others These resources the
community demographics and trends warrant special focus to this area
Chula Vista is recognized as a leader in renewable energy, energy efficiency, and sustainable
development. The Consultant shall do additional focused research on clean tech industries that may
represent opportunities for the City. The Consultant understands that the planned University Park and
Research Center will provide a location tailored for clean tech industries.
Chula Vista's unique location, only 7 miles from the Mexico border, may offer additional border-related
opportunities, particularly for manufacturing industries that can take advantage of assembly capabilities
and component manufacturing in Mexico. There may also be opportunities related to information and
communications technology which is currently being targeted in Tijuana through the Baja Innovation
and Technology Center.
The addition to the work scope is approved by Chabin Concepts
Audrey Taylor
November 6, 2012