HomeMy WebLinkAboutStaff Report 14724
City of Palo Alto (ID # 14724)
City Council Staff Report
Meeting Date: 9/12/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Contract No. C23183740 with StreetSense CA, LLC for
Economic Development Consulting Services for a Term Expiring December 31,
2025 and a Total Amount Not-to-Exceed $261,995; and Approval of a Budget
Amendment in the General Fund
From: City Manager
Lead Department: City Manager
Recommendation
Staff recommends that Council:
(1) Approve and authorize the City Manager or their designee to execute the Contract No.
C23183740 (Attachment A) with StreetSense CA, LLC for a term expiring December 31,
2025 for a not to exceed amount of $261,995 for the development of and work on an
Economic Development Strategy for the City of Palo Alto; and
(2) Amend the FY 2023 Budget Appropriation for the General Fund by (2/3 approval):
a) Increasing the contract services expense appropriation in the City Manager’s Office
by $261,995; and
b) Decreasing the budget stabilization reserve by $261,995.
Executive Summary
The goal of the Economic Development Strategy is adoption of an economic development plan
that includes a roadmap for short-term (within 3 year) and longer-term projects and actions to
sustain the economic vitality of Palo Alto. Implementing prior Council direction, StreetSense CA,
LLC (StreetSense) and HdL, as a subcontractor, will conduct an evaluation of the current
economic landscape in Palo Alto, perform a Strengths, Weakness, Opportunity, and Threat
(SWOT) analysis for economic activity, facilitate conversations with stakeholders invested in the
City’s sustained economic vitality, and provide actionable recommendations to the City of Palo
Alto. This will provide the City with a roadmap of options for supporting economic growth,
continuing meaningful engagement with stakeholders – including residents, members of the
business community, and others, and other actions and programs to inform the City’s path
towards sustained economic vitality. Work is expected to be completed in full within 24
months, however, work products will be continuous during this time to ensure staff are both
planning and executing recommendations throughout the contract period.
Background
City of Palo Alto Page 2
The City of Palo Alto (“City” or “Palo Alto”) has had multiple conversations at City Council
meetings and with community stakeholders about economic development and economic
vitality in Palo Alto in recent years. Through the COVID-19 pandemic the City took numerous
actions and convened a series of business roundtable meetings, and the City Council adopted
Community and Economic Recovery as one of its four 2021 priorities. The workplan for
Community and Economic Recovery included refining the scope and breadth of the City’s
economic development activities as an element. A full timeline of the City’s previous
discussions at City Council regarding economic development can be found in Attachment B to
this report.
In FY 2022, the City contracted with the Good City Company to scope an economic
development strategy. The City Council reviewed the scope of services on June 1, 2021 (CMR
12232) and approved that scope on September 13, 2021 (CMR 13433). The City issued a
Request for Proposals based on that approved scope of work.
Discussion
The City issued a Request for Proposals (RFP) for economic development consulting services on
December 17, 2021 and received two (2) proposals by the deadline of January 18, 2022.
Table 1. Summary of RFP Process:
RFP Name/Number:
Economic Development Consulting Services –
RFP No.183740
Proposed End Date of project: 6/30/2024
Total Days to Respond to RFP: 32
Number of Proposals Received: 2
Initial Proposal Price Range: $181,054 - $236,900
An evaluation committee consisting of staff from the City Manager’s Office, Planning and
Development Services Office and the City’s consultant (Good City Company) reviewed the
proposals. Each of the firms that submitted proposals were invited to participate in oral
interviews on March 21, 2022. Through evaluation of the proposals, StreetSense was selected
for: 1) their experience with similar jurisdictions, 2) their comprehensive knowledge of the
interconnectedness of a local business ecosystem with other elements of the community, and
3) their partnership with HdL Companies to bolster analytical efforts. The final contract cost was
adjusted from the initial proposed level to account for additional on-premise activities
requested, expected additional hours necessary to complete tasks as staff and the service
provider further refined expectations and needs, as well as the inclusion of a small contingency
should additional work be requested or desired from the City.
Staff will work alongside StreetSense and HdL as a subcontractor to develop a comprehensive
economic development strategy that will include both short-term recommendations (those that
can be implemented within three years) as well as longer-term recommendations for sustained
economic vitality in the City of Palo Alto.
City of Palo Alto Page 3
The Economic Development Strategy has the following main components:
• Task 1.0 – Develop Economic Development Goals and deliver summary memo Economic
Development Goal Setting Workshop
• Task 2.0 – Economic Conditions Snapshot; Strengths, Weaknesses, Opportunities, and
Threats (SWOT) Matrix; Presentation Deck for public Distribution
• Task 3.0 – Summary Memo of Global and National Economic Trends
• Task 4.0 – Research and Draft Report of Strategies for Economic Development
• Task 5.0 – Research and Draft Retail Market Analysis Report, Draft Tax Analysis Report,
Revisions, and Final Market Analysis Report and Final Tax Analysis Report
• Task 6.0 – Research and Produce Draft and Final Hospitality Market Analysis Report
• Task 7.0 – Summary Memo and Business Profile of the City based on business registry
Various sub-tasks necessary to fully complete the main components are detailed more
extensively in the contract’s scope of services, seen as Exhibit A in the attached contract. This
scope of work was drafted in alignment with the Council approved scope of work referenced
above and approved in FY 2022.
Timeline
The estimated time for completing the entire scope of services of the contract is 24 months,
though the term of the contract extends beyond this estimate to address any unforeseen
changes in timelines. StreetSense is prepared to begin working immediately after the signature
of the contract and will schedule their first discussions with key stakeholders as early as
September 2022.
Many of these tasks will run concurrently. For example, while StreetSense is preparing for initial
outreach, they will also be researching current trends in retail and local business development
and retention. Parallel work is intended to ensure progress will be made at a steady, consistent
pace, incorporating recurring feedback and inputs from some of the tasks into the overall
economic development strategy.
This work will be iterative with the City Council; the scope of services includes initial data
gathering, analysis, and synthesis by the StreetSense team before a discussion with the City
Council on initial findings and recommendations.
Stakeholder Engagement
City staff has been in ongoing communication with the business community, including
stakeholders of the University Avenue and California Avenue districts as well as the Chamber of
Commerce throughout the process of refining the scope and breadth of the City’s economic
development function. Through the development of Economic Development strategies,
StreetSense will continue this engagement with key stakeholders and stakeholder groups,
incorporating feedback into their final recommendations.
City of Palo Alto Page 4
Resource Impact
Funding for this contract was previously budgeted in the Strategic Initiatives Reserve in the FY
2022 Adopted Operating Budget. Ordinarily, the funds would be reappropriated as part of the
standard process for reappropriations since the contract was not able to be finalized before the
close of FY 2022. The annual reappropriation memorandum is anticipated to be presented to
Council in October 2022.
Given the timeliness and urgency of this contract, the budgetary actions described in the
recommendation section of this report constitute an “early reappropriation”. The actions
described in this report effectively use FY 2022 funding of $261,995 that was appropriated for
City Council approved initiatives, including economic recovery; however, due to the timing of
the contract award in a new fiscal year the funding is currently available as fund balance in the
Budget Stabilization Reserve (BSR). As a result, even though the recommendation draws on
fund balance to encumber funds for this contract, the impacts on the BSR have already been
incorporated into projections and discussion of available fund balance in the General Fund.
Policy Implications
This project is consistent with prior Council direction to further revise and develop the scope of
the City’s economic development activities. As discussed earlier in this report, Attachment B
details prior City Council discussions pertaining to the economic development function and
includes links to the respective CMRS. This project is also consistent with the City’s
comprehensive plan, which includes goals and policies related to a thriving economy,
compatibility and interdependence of businesses, a culture of innovation and business
diversity, efficiency and predictability, and retail centers and business employment districts.
Environmental Review
The development of economic development strategies is not a project that requires California
Environmental Quality Act (CEQA) review, because it is an administrative government activity
which will not directly or indirectly cause physical changes to the environment.
Attachments:
• Attachment A: StreetSense CA, LLC. Contract; C23183740
• Attachment B: Previous Council Discussions of Economic Development
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CITY OF PALO ALTO CONTRACT NO. C23183740 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND STREETSENSE CA, LLC This Agreement for Professional Services (this “Agreement”) is entered into as of the 12 day of September, 2022 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and STREETSENSE CA, LLC, a California limited liability company, with its principal offices located at 641 S Street, NW, Washington, DC 20001 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS
A. CITY intends to award a contract for Economic Development Consulting Services (the “Project”) and desires to engage a consultant to provide support to the City’s economic development strategy in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary
professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 31, 2025, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and
in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances
and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Two Hundred Thirty-Eight Thousand One Hundred Seventy-Eight
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Dollars ($238,178.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-exceed compensation amount of Twenty-Three Thousand Eight Hundred Eighteen Dollars ($23,818.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Two Hundred Sixty-One Thousand Nine Hundred Ninety-Five Dollars ($261,995.00), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a
Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in
Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional
Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an
identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information
in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform
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the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be
furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but
not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project,
CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income
tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment
or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by
which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT
are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties.
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SECTION 12. SUBCONTRACTING. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be
performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are: HdL Companies, which will perform a tax analysis report. CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation
due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Larisa Ortiz, Managing
Director, Public/Nonprofit, address: 641 S Street NW, Washington, DC 20001, telephone: (917) 696-1374, email: lortiz@streetsense.com as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior
written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Steve Guagliardo, Administrative Services Department, 250 Hamilton Ave., Palo Alto, CA, 94301, telephone: (650)329-2450 email: Steven.Guagliardo@cityofpaloalto.org . CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and
execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all
writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation
upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its
subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services. Notwithstanding anything to the contrary set forth herein, CITY hereby acknowledges that prior to entering into this Agreement with the CITY, CONSULTANT has developed certain computer programs, processes, report formats and other intellectual property in connection with Consultant’s ongoing business operations
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("Consultant’s IP") and CITY hereby expressly waives any claim of ownership of or right to any of the Consultant’s IP. CONSULTANT hereby grants CITY a perpetual, royalty-free, non-exclusive and non-transferable right and license to use Consultant’s IP in connection with the work product in order to
complete the Project contemplated herein, and only for the purpose that the work product was created for such Project. SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, upon prior written notice to CONSULTANT at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person,
property damage or any other loss, including all costs and expenses of whatever nature including reasonable attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the
expiration or early termination of this Agreement. SECTION 16.A. LIMITATION OF LIABILITY. Notwithstanding anything to the contrary contained
herein, and except to the extent the claims arise out of a breach by CONSULTANT of its confidentiality obligations herein or are contained in a third party claim that is subject to the indemnity set forth herein, in no event shall either party be liable for special, incidental, or consequential damages resulting from any
breach of this Agreement, even if such party has been notified of the possibility of same. A third party claim shall refer to claims made by any party that is not the CITY or the CONSULTANT. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE.
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18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled
“INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall
provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed
to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement,
in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the
notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City
Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on
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account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The
following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 16.A, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:
To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303
With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it
will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto
Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as
amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition,
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housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet
all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise
entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic
boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
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SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.
26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor
Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes
of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to
CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and
appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need
to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement.
Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information;
or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential
Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior
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to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT.
28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of
law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives
of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by
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the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected
below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: EXHIBIT A: SCOPE OF SERVICES EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER EXHIBIT B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.
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CONTRACT No. C23183740 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement as of the date first above written. CITY OF PALO ALTO ____________________________ City Manager
APPROVED AS TO FORM: __________________________ City Attorney or designee
STREETSENSE CA, LLC Officer 1 By:__________________________________ Name: Kurt Haglund
Title: Chief Operating Officer, Authorized Signatory Officer 2
By:__________________________________ Name: Ira Starr Title: Chief Administrative Officer, Authorized
Signatory
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EXHIBIT A SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. CONSULTANT will produce an Economic Development Workplan for the City of Palo Alto, a roadmap for interventions and strategies that can be implemented in the near-term (within three years) and iterated upon for longer-term success by providing the services outlined below: Task 1.0 – Define Economic Development Goals and deliver a summary memo of the goal setting workshop Task 1.1 – Document Review
• CONSULTANT will review any publicly available data and relevant background data, including
– but not limited to - area and comprehensive plans, business surveys, previous
demographic/market studies, and real estate industry reports (including that of competitive
submarkets) to inform understanding of conditions in Palo Alto.
• CONSULTANT will seek to identify gaps in background information and resolve with the CITY
at kickoff meeting.
Task 1.2 – Site Visit
• CONSULTANT will conduct a site visit to gather field data based on predefined study area
boundaries, including an observational assessment of the public realm public
realm/storefronts/access/visibility.
• CONSULTANT’s site visit will include stakeholder interviews.
Task 1.3 – Kickoff Meeting
• CONSULTANT will facilitate a kickoff meeting with all project stakeholders (as mutually
determined with the CITY) to establish baseline expectations for ongoing work.
• Kickoff meeting will cover topics including: communication channels to ensure timely and high-
quality delivery of project tasks, defining key commercial districts, discussing aspirational
markets for comparison, and aligning project objective s methodology, schedule, deliverables,
and protocols.
• Project managers will be identified for both the CONSULTANT and the CITY.
Task 1.4 – Goal Setting Workshop
• CONSULTANT will facilitate a visioning session with the steering committee of key
stakeholders in the City of Palo Alto to determine a set of measurable economic development
goals (or Key Performance Indicators (KPIs).
• CONSULTANT will work to elicit feedback from stakeholders on KPIs, which typically measure
impact through numbers or ratios, e.g. a 20% increase in overnight stays.
• The workshop will also identify potential tools for measuring those goals and lead partners to
measure the KPIs.
Task 2.0 – Economic Conditions Snapshot; Strengths, Weaknesses, Opportunities, and Threats (SWOT)
Matrix; Presentation Deck for public Distribution
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Task 2.1 – Physical Environment Assessment
• CONSULTANT will gather field data on existing conditions of key commercial districts and
corridors through site visit and stakeholder conversations
• CONSULTANT will assess major economic assets such as office campuses, manufacturing
facilities, lodging facilities, and visitor destinations.
• CONSULTANT will assess the strengths and weaknesses of the public realm, private, realm, and
accessibility/visibility of each economic cluster
o CONSULTANT will evaluate the public realm, including roadways, sidewalks, rails &
trails, and public spaces that support access to, and mobility within and across,
communities
o CONSULTANT’S evaluation of the public realm shall include conditions and
accessibility of existing open spaces that offer people places to gather and participate in
economic activity
o CONSULTANT will evaluate the private realm, including private assets, properties and
buildings, and the balance of the physical environment.
o CONSULTANT’S evaluation of the private realm will consider existing built assets and
the location and site location characteristics (access to customer base, proximity to
existing nodes, the ability to create sufficient concentration of offerings to support a new
node) of underutilized opportunity sites as well as underlying ownership.
Task 2.2. – Business Environment (Economic Activity) Assessment
• CONSULTANT will explore and analyze the “Drivers” of the Palo Alto economy, including the
anchors/destinations, concentrations/clusters of business activity (economic clusters), and local
business mix and employment
• CONSULTANT will assess each cluster and develop asset maps that identify key business
anchors (Across sectors and industries) that drive economic activity and influence tenant mix
within each area.
• CONSULTANT will analyze the sales tax growth/contraction against baselines before COVID
and during COVID and conduct an economic base analysis to estimate general rate of growth of
business activity across sectors
• CONSULTANT will determine if there are any competitive sectors/industries that would benefit
from a focused strategy by the CITY in the future
Task 2.3 – Commercial Real Estate Market Assessment
• CONSULTANT will analyze qualitative and quantitative data to understand the supply and
demand of commercial real estate in the region
• CONSULTANT will identify if, and how much, latent demand exists in the Palo Alto submarket
for new office, retail, and industrial development based on historic real estate performance
• CONSULTANT will factor in submarket vacancy rates, construction rates, product type, price
points, quality of space, and future competition into its analysis of latent demand
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Task 2.4 – Produce Economic Development Brochure
• CONSULTANT will produce a succinct (two (2) to ten (10) page) brochure that can serve as a
marketing tool to help generate interest in Palo Alto as a business location from potential
businesses, investors, funders, and founders.
Task 2.5 – Regulatory/Administrative Capacity Assessment
• CONSULTANT will analyze the organizational capacity of the CITY to execute and implement
economic development programs and initiatives
• CONSULTANT will identify local leaders and partners (including anchor businesses and
institutions such as local non-profit organizations) engaged in economic development
• CONSULTANT will identify additional resources and funding that may be needed to
successfully support implementation of strategies
• CONSULTANT will assess the existing regulatory framework (including, but not limited to,
zoning and permitting/licensing processes) that shape what can be built where
o CONSULTANT will identify aspects of the regulatory framework that may impeded
economic development or encourage market distortion
• CONSULTANT will research and identify other operating challenges to local businesses through
stakeholder conversations and business survey input
Task 2.6 – SWOT Matrix of Assessment Findings
• CONSULTANT will organize key findings from the assessments of the physical environment,
businesses environment, commercial real estate, and administrative capacity into a SWOT matrix
• CONSULTANT will facilitate a discussion of the SWOT matrix with the CITY to focus on
priority areas for improvement
Task 2.7 – City Council Presentations
• CONSULTANT will present Economic Scan to City Council and conduct City Council outreach
through coordination with CITY’s project manager
• CONSULTANT will provide at least three City Council updates throughout the process at City
Council meetings
Task 3.0 - Summary Memo of Global and National Economic Trends
• CONSULTANT will research industry-wide changes in business operations, business travel, and
trends that serve as indicators for how consumer tastes/preferences are evolving
• CONSULTANT’s trend assessment will analyze secondary data from a variety of sources,
including, but not limited to,
o Real Estate Brokerage Experts (via CBRE)
o Real Estate Market Outlook Reports (e.g. JLL, Colliers, Newmark)
o San Francisco Travel Association
o World Travel and Tourism Council
o Destination Analysts
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o Tourism Economics (Annual Economic Impact Reports)
o Destination Palo Alto’s subscription data
o Other publicly available reporting
Task 4.0 – Draft Report of Strategies for Economic Development, Revisions, and Final Report of Strategies for Economic Development Task 4.1 – Research and Draft Report of Strategies for Economic Development
• CONSULTANT will draft an economic development plan and strategy that prioritizes readily
implementable short- and long-term actions and projects.
• CONSULTANT will clearly outline key steps that the CITY and stakeholders can take to
implement any project or recommendation.
• CONSULTANT will include geographic focus areas of investment which may include economic
clusters or specific opportunity parcels or sites.
• CONSULTANT’s draft report recommendations may include, but is not limited to, the following
areas:
o Redevelopment in the public realm: Includes any improvements to existing transportation
networks, public utility extensions, placemaking/tactical improvements, public space
capital projects, and signage and wayfinding.
o Redevelopment in the Private realm: includes programmatic interventions to support
and/or incentivize private sector investments in real property improvements.
o Business retention and attraction: includes programs that support business attraction,
expansions, and relocation (e.g. workforce training, relocation incentives, and other)
o Marketing and Promotion: includes tolls that will increase visits and raise awareness of
the City’s assets and retail/dining offerings, particularly through digital platforms.
o Administrative capacity: includes strategies to address issues of capacity that might
otherwise impede implementation of strategies (including capacity-building programs
and partnerships with anchor businesses) as well as recommendations to address
regulatory or zoning issues that may impede business growth and vitality.
Task 4.2 – Feedback from the City of Palo Alto
• CITY shall provide feedback on the draft report provided by CONSULTANT
• CONSULTANT will facilitate a City Council working session on draft strategies after CITY
feedback has been incorporated
Task 4.3 – Finalize and Present Report of Strategies for Economic Development
• CONSULTANT will incorporate feedback from the working session City Council to create a
Final Report on Strategies for Economic Development
Task 5.0 – Research and Draft Retail Market Analysis Report, Draft Tax Analysis Report, Revisions, and Final Market Analysis Report and Final Tax Analysis Report
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Task 5.1 – Research and Draft Retail Market Analysis Report and Draft Tax Analysis Report
• CONSULTANT will identify additional revenue opportunities through Market Analysis Report
and Draft and Final Tax Analysis Report
• CONSULTANT will analyze market-supported retail demand for the past five years through the
City’s core commercial cores (Downtown, Stanford Shopping Center, California Ave., and
neighborhood shopping centers)
• CONSULTANT will develop a comprehensive analysis of sales tax performance (including a
breakdown by major business categories and across each commercial core)
• CONSULTANT will transmit draft versions of:
o A sales tax gap leakage analysis: includes consumer demand and market supply
assessment to evaluate sales tax performance within Palo Alto and ability to draw
consumers from nearby communities and the greater trade area.
o Assessment of Palo Alto’s major sources of tax revenue (sales tax, property tax, and
transient occupancy tax) for pre-pandemic revenues, current revenues, and a three-year
projection.
o A SWOT analysis for Palo Alto to identify challenges and constraints along with
opportunities to recognize going challenges as well as future threats to the Palo Alto retail
marketplace
o A void analysis to identify market opportunities for Palo Alto to attract new retail and
restaurant possibilities that would be a good fit with the Palo Alto market place and
market analytics make-up
• CONSULTANT shall submit draft reports to the City of Palo Alto
Task 5.2 – Feedback from the City of Palo Alto
• CITY will provide feedback on draft reports to the CONSULTANT
Task 5.3 – Finalize Retail Market Analysis Report and Tax Analysis Report
• CONSULTANT will incorporate CITY feedback into final versions of Retail Market Analysis
Report and Tax Analysis Report
Task 6.0 – Research and Produce Draft and Final Hospitality Market Analysis Report Task 6.1 – Research and Draft Hospitality Market Analysis Report
• CONSULTANT will investigate and determine potential for hotel development in core
commercial districts based on diagnostic assessment of submarket
o Assessment will consider quality and quantity of existing hotel rooms, year-over-year
occupancy rates, price points, and future competitions
• CONSULTANT will determine any viable demand gaps in the market and provide estimates for
RevPAR and occupancy levels
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• CONSULTANT will develop a comprehensive set of recommendations to reinforce the City’s
branding to travelers, increase overnight stays and visitor spending, and bolster existing
community assets and priorities
• CONSULTANT will research questions around changes in corporate travel policies through
iterative conversations and a survey instrument with key companies, institutions, and
stakeholders.
• CONSULTANT will convene a focus group discussion with corporate stakeholders to uncover
potential competitive advantages from the perspective of business travel.
• CONSULTANT will prepare a draft a report synthesizing findings related to the hospitality
market which may include, but is not necessarily limited to:
o Strategies for growing demand from visitors: includes raising awareness of existing
assets through marketing, promotion, and branding, as well as strategies that improve the
accessibility and visibility of the region’s offerings.
o Strategies to improve supply of visitors and hospitality: includes the quality and quantity
of offerings that are unique to Palo Alto, with an emphasis on strategic destination drivers
that reinforce the brand of Palo Alto and further differentiate the City from other regional
destinations. May include capital investments to specific assets and/or public realm
enhancements that improve the visitor experience.
Task 6.2 – Feedback from the City of Palo Alto
• CITY will provide feedback on the draft report to the CONSULTANT
Task 6.3 Finalize Hospitality Market Analysis Report
• CONSULTANT will incorporate CITY feedback into final version of Hospitality Market
Analysis Report
Task 7.0 – Summary Memo and Business Profile of the City based on business registry
Task 7.1 – Assess Business Registry
• CONSULTANT will analyze and identify ‘gaps’ in the retail mix through examining the existing
supply/landscape of businesses
• CONSULTANT will identify gaps in information currently detailed in the business registry for
future revisions
Task 7.2 – Business Profile for the City of Palo Alto
• CONSULTANT will compare information from the business registry and other research to
accurately determine any unmet market demand and potential new retail opportunities/expansions
• CONSULTANT will prepare a summary memo detailing their findings
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EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions
of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________
5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________
I hereby authorize the performance of the
work described in this Task Order. APPROVED: CITY OF PALO ALTO
BY:________________________________
Name ______________________________ Title_______________________________ Date _______________________________
I hereby acknowledge receipt and
acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME:
___________________________________ BY:________________________________
Name ______________________________ Title________________________________ Date _______________________________
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EXHIBIT B SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY. Milestones Completion (Number of Months from NTP); approximate hours if applicable Task 1: Define Economic Development Goals; create and transmit summary
memo of the goal setting workshop
9 months; 96.5 hours
Task 2: Research and Create Economic Conditions Snapshot; Strengths, Weaknesses, Opportunities, and Threats (SWOT) Matrix; Presentation Deck for public Distribution
6 months; 341 hours
Task 3: Summary Memo of Global and National Economic Trends
5 months; 51.5 hours Task 4: Research and Draft Report of Strategies for Economic Development 11 months; 144 hours Task 5: Research and Draft Retail Market Analysis Report, Draft Tax Analysis Report, Revisions, and Final Market Analysis Report and Final Tax
Analysis Report
10 months; 74 hours
Task 6: Research and Produce Draft and Final Hospitality Market Analysis Report
10 months; 206 hours
Task 7: Summary Memo and Business Profile of the City based on business registry
5 months; 30 hours
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional
Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.
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EXHIBIT C COMPENSATION
CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. BUDGET SCHEDULE
Milestones Not to Exceed (NTE) Amount by Task
Task 1: Define Economic Development Goals; create and transmit summary memo of the goal setting workshop $31,032
Task 2: Research and Create Economic Conditions Snapshot; Strengths,
Weaknesses, Opportunities, and Threats (SWOT) Matrix; Presentation Deck for public Distribution
$101,186
Task 3: Summary Memo of Global and National Economic Trends $9,540
Task 4: Research and Draft Report of Strategies for Economic Development $37,990
Task 5: Research and Draft Retail Market Analysis Report, Draft Tax Analysis Report, Revisions, and Final Market Analysis Report and Final Tax Analysis Report $15,780
Task 6: Research and Produce Draft and Final Hospitality Market Analysis Report $37,750
Task 7: Summary Memo and Business Profile of the City based on business registry
$4,900
Sub-Total: $238,178
10% Contingency (Additional Services per Section 4 of this Agreement) $23,818
Reimbursable Expenses $0
Grand Total: $261,995
REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative
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support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses
hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
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EXHIBIT C-1 SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows: Hourly Rates: Where the fee arrangement is to be on an hourly basis, the hourly rates shall be as noted below:
Managing/Technical Director $300
Senior Director $250
Director $225
Senior Manager $200 Manager $180 Senior Consultant $165
Consultant $110-$140
Administrative Support $110
Subcontractor’s hourly rates are:
Principal Managing Director $250 Senior Associate $180
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EXHIBIT D INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH OCCURRENCE AGGREGATE
YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY
BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED.
$1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000
YES
AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED
BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
YES
PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE
ALL DAMAGES $1,000,000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. [INTENTIONALLY REMOVED]. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:
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A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE
NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT
INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE
CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL
PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP
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ATTACHMENT B
Previous City Manager Reports Related to Economic Development
The dates of key previous conversations with the City Council regarding Economic Development, dating
back to November 30, 2020, are included below. These conversations shaped and informed the scope of
services included the Request for Proposals.
Following the date, a brief description, the CMR number, and a link to the pertinent report is included.
• November 30, 2020 – Study Session on Community and Economic Recovery Strategies (CMR 11790)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2020-2/id-11790.pdf
• January 19, 2021 – Feedback and Direction on Economic Recovery Workplan (CMR 11877)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-11877.pdf
• February 2021 – The City Council adopted its calendar year 2021 Priorities, including Community and
Economic Recovery (CMR 11957)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-11957.pdf
• March 22, 2021 – Community and Economic Recovery workplan adopted including item “G: Refine
the scope and breadth of the city’s economic support activities” (CMR 12111)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-12111.pdf
• May 3, 2021 – Update on Community and Economic Recovery (CMR 12206)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-12206.pdf
• June 1, 2021 – Discussion and Direction on the Scope of Economic Development (CMR 12232)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-12232.pdf
• June 21, 2021 – Update #2 Community and Economic Recovery Workplan (CMR 12362)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-12362.pdf
• September 13, 2021 – Discuss and Provide Direction on a Request for Proposals (RFP) for an
Economic Development Strategy Consultant and an Internal Staffing Plan to Support Economic
Development Issues (CMR 13433)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-
council-agendas-minutes/2021/09-september/20210913/20210913pccsm-amended-linked-final-
council-qa.pdf