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HomeMy WebLinkAboutRDA 03 INTERRA STRAT. 02-02-98RDA NO. 3 2-2-98 · DATE' FEBRUARY 2, 1998 Inter-Com TO: FROM: SUBJECT: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR REDEVELOPMENT AGENCY STAFF CONSULTANT SERVICES AGREEMENT WITH INTERRA STRATEGIES, INC. FOR PREPARATION OF A MARKETING AND MEDIA PLAN FOR MCAS-TUSTIN RECOMMENDATION It is recommended that the Redevelopment Agency authorize the Executive Director to execute a Consultant Services Agreement between the Tustin Community Redevelopment Agency and Interra, Inc. to develop a Marketing and Media Plan for the MCAS-Tustin property. · FISCAL IMPACT The cost of the primary scope of services is a not-to-exceed amount of $130,000 which is likely to extend beyond the Fiscal Year 1997-98 through Fiscal Year 1998-99. Funding would come from the following sources: 25,000 Federal grant from the Office of Economic Adjustment (OEA); 30,000 CDBG funds already allocated for the project; 13,645 MCAS-Tustin Redevelopment Agency funds; and 41,355 Reallocation of CDBG MCAS-Tustin funds scheduled for February 2, 1998. 10,000 Since the Consultant's work will extend beyond Fiscal Year 97-98, the Consultant has agreed to defer billing for up to $20,000 of the proposed budget amount until after July 1, 1999. The $20,000 balance of the expenditure will come fi.om a request for Fiscal Year 1998-99 CDBG funds subject to the approval by the City Council. If the $20,000 is not approved as part of the CDBG program funding allocation, a future appropriation of Redevelopment Agency funds will be requested. William A. Huston Interra Strategies, Inc. February 2, 1998 Page 2 The Consultant may provide services in addition to those'specified in the primary scope of services. The terms and compensation of such services will be separately negotiated as needed. IfMCAS-Tustin Redevelopment funds are not available when additional services may be requested, an additional appropriation for such services may be needed at that time. BACKGROUND AND DISCUSSION The City, as the Local Redevelopment Authority for MCAS-Tustin, has prepared and is processing the MCAS-Tustin Reuse Plan/Specific Plan and will shortly initiate negotiations with the Department of the Navy for the conveyance of approximately 1,100 acres of land located on the base through an Economic Development Conveyance (EDC). As part of the effort to maximize the City's opportunity for success in implementing this major redevelopment program, the Agency solicited Request for Proposals (RFP) for development of a Professional Marketing and Media Plan in early September, 1997. It is staff's desire to augment existing staff resources with a professionally prepared, focused, strategic marketing plan. The Agency received six proposals on October 10, 1997 in response to its solicitation. Attachment I is a summary of all initial responses. Firms submitting proposals included the following: · CB Commercial with Amies Communications; · E.Y. Kenneth Leventhal with Gladstone International and Hawkins Advertising; · Grubb & Ellis Company with Cooley Company; · Interra, Inc. with Lee & Associates; · LFC Marketing services, Inc.; and · Stoorza Ziegaus & Metzger with Keyser Marston Associates and Roger Faubel Public Affaks. The proposals were reviewed by an evaluation committee comprised of Agency staff and two representatives of the Economic Development Council - MCAS Marketing Committee. After the Evaluation Committee's thorough screening of the proposals and verification of references, interviews were conducted by the Evaluation Committee with the three best qualified consultant teams the week of November 17, 1997. Interra, Inc. was selected by the Committee to be recommended for the proposed consulting services, based on.a the responsiveness of their proposal to the City's objectives, strength of their local market knowledge, comparable experience, and proposed budget. Attached is the proposed Consultant Services Agreement between the Redevelopment Agency and Interra, Inc. The Agreement provides for the completion of the multiple task work program described below within approximately five months of receipt of a Notice to Proceed. The total compensation under the Agreement provides for the payment by the City to the Consultant for the actual time of William A. Huston Interra Strategies, Inc. February 2, 1998 Page 3 work performed and material costs expended in a not-to-exceed fixed amount of $130,000. The City is intending to fund the Scope of Services in the Agreement through Redevelopment Agency funds and grant funds secured from the federal Department of Housing and Urban Development and the Department .of Defense Office of Economic Adjustment. The Agreement reserves for the Agency the ability, at its sole discretion, to have In~erra provide additional services related to the implementation of the marketing plan. If Agency staff believes such additional services will be necessary, the Executive Director will have the ability to negotiate terms and compensation. In the event funds for consultant services are not available at that time, staff may need to return to the Agency for additional appropriations at that time. The Agreement calls for the Consultant to provide those services specified in the City'.s Request for Proposals (attached as Exhibit "B") and in the Consultant's proposal (attached 'as Exhibit "A") including the following scope of services: Task I Strategic Framework A. Prepare a programming outline to codify the vision, establish enduring principles, clarify the objectives and delineate a framework for the Marketing Plan preparation and implementation. B. Prepare an analysis of the MCAS-Tustin Reuse Plan's strengths, weaknesses, opportunities and threats in the context of developing near-term and long-range marketing goals and objectives, identif~g target audiences and market segments and strategies for achieving the most effective means for outreach to individual markets. " C. ReView of existing marketing efforts and materials and identification of strategic fit Opportunities for dove-tailing existing marketing efforts with the proposed Marketing Plan, as well as identification of distinguishing elements to be addressed in the proposed plan. Task II Market Assessment A. Review and update the KMG (11/96) market demand analysis to assess the current market conditions and to identify emerging market trends and opportunitiesl B. Prepare a catalog of market outreach targets including industry leaders and decision makers, industry trade groups, and qualified commercial, industrial land residential developers/builders. C. Identify potential users for near-term occupancy of existing facilities at MCAS-Tustin. D. Identify and recommend potential economic incentives (including LAMBRA designation) and benefit packages to be offered to users, identify how to maximize the value and exposure of such benefit packages, and develop a process to identify and market the incentives and benefit packages to particular business users, developers, investors and the real estate brokerage community. William A. Huston Interra Strategies, Inc. February 2, 1998 Page 4 Task III Market Vision, Theme and Identity A. Develop a market vision for the project area which conveys the site's overall development concept and leads to the identification of an appropriate market identity. B. Establish a market positioning strategy and theme as a means identifying the unique site attributes and premises in comparison to the 'surrounding competitive market that will serve to create a distinctive place in the market for the planned development. C. Prepare defined tactics and proprietary messages that can be used to market the site, establishing selling propositions, communications themes and strategic messages which will form the foundation for the marketing platform. D. Develop a name for the site which conveys a sense of"place", the quality and scale of the planned community, and the distinctive market position to be developed at MCAS-Tustin, as well as any names for the specific planning areas/uses (i.e. industrial vs. residential) within the project area. E. Prepare a comprehensive, enduring visual image program which include a master graphics design standards document and the design of the planned community logo, logo typeface, colors, and materials, as will as other visual vocabulary elements to represent the site and the planning mb-areas of the site. F. Prepare an umbrella communications and media program including press kit components, web site program, and a comprehensive marketing and media calendar that will guide the execution of the strategic marketing plan in terms of priorities, proposed schedule and cost parameters. Task IV Strategic Marking Plan Prepare a compilation final report which includes the results of Tasks I, II, and III, and more specifically include: A. A Plan for the initial marketing period to include recommendation ' for a communications and media programming mix, schedules and a range of media budgets; and B. A longer range marketing plan which explores altemative development programming and site delivery scenarios in the context of potential changing market conditions. The attached Consultant Services Agreement has been approved by the City attorney's office. James A. 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'~::'"~"' ......... ' .................... ~:::~::'~"'~ o .... : ........ ::: .... :.....::~:::....:.:..:,.(~.::...:: ...... .-.:.::::: ::::::iiiii~li'i'i: iii(~!iF:::i;i,,~::.. .::~,,diil .!ii. :::::::::::::::::::::::::::::::::: ::;:~ ::;.: : :. ~,_,~:~:~.~a~::~:.i::~i:::-aii~=i!i~::.iii!~::,~ ~:: '~.:~ "" .......... ============================== ..................................... :':" ........ =:::":'::: ............. ' ......................................... ..... ...................................... ' :::::::::::::::::::::::::::::: :::::::::::::::::::::::::: ::::::::::::::::::::: ::::::: ::::::::: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: CONSULTANT SERVICES AGREEMENT This Agreement for Contract Services (herein "Agreement"), is made and entered into by and between the CITY OF TUSTIN, a municipal corporation ("City"), and Interra Strategies, Inc.', ("Consultant") . WHEREAS, Consultant is qualified to provide the necessary services and has agreed to provide such services; and WHEREAS, Consultant has submitted to City a proposal, dated October 10, 1997, a copy of which is attached hereto as Exhibit "A", and is by this reference incorporated herein as though set forth in full hereat (the "Proposal"). NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein, City agrees to employ and does hereby employ Consultant and Consultant agrees to provide consulting services as follows: 1.0 SERVICES OF CONSULTANT 1.1 Scope'of Services. In compliance with all terms and conditions of this Agreement, the Consultant shall provide those services specified in the "City's Request for Proposal Scope of Services" attached hereto as Exhibit "B" and incorporated herein by 'this reference, (the "services" or the "work") and in the Consultant's proposal, "Exhibit A." Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with all standards prevalent in the industry. In the event of any inconsistency between the terms of 'such proposals and/or the text' of this Agreement, the text of this Agreement and Exhibits C, D, and E shall govern. 1.2 Compliance with Law. Ail services rendered hereunder shall be provided in accordance with all Federal, State of California laws, and the. ordinances, resolutions, statutes, rules, and regulations of the City of Tustin and the Tustin Community Redevelopmeht Agency. 1.3 Familiarity with Scope of Services. By executing this Contract, Consultant warrants that Consultant (a) has thoroughly investigated and considered the work to be performed, (b) has generally acquainted itself with the site of the work and -1- conditions there existing and (c) has carefully considered the means and methods for performance (d) fully understands the facilities, difficulties, restrictions attending performance of the work under this Agreement. Should the Consultant discover any latent or previously unknown conditions materially differing fYom those inherent in the work or as represented by the City, Consultant shall immediately inform City of such fact and shall not proceed with any work except at Consultant's risk until written instructions are received from the Contract Officer. 1.4 Care of Work. The Consultant shall adopt reasonable methods durihg the life of the Agreement to prevent loss or damage to materials, papers and other components thereof to minimize lOsses of damages and shall be responsible for all such damages until acceptance of work by City, except, such losses or damages as may be caused by City's own negligence. 1.5 Additional Services. In accordance with the terms and conditions of this Agreement, the Consultant shall perform services in addition to those specified in the Scope of Services when directed to do so in writing by the Contract Officer, provided that Consultant shall not be required to perform any additional services without additional, reasonable compensation. Any. additional compensation not exceeding ten percent (10%) of the original contract sum may be approved in writing by the Contract Officer. Any greater increase must .be approved by the City Manager. Other applicable provisions for additional services are found, in SeCtions 2.3 and 2.4. 1.6 Special Requirements. Additional terms and conditions of this Agreement which are made a part hereof are set forth in Exhibit "C", "D" and "E" and are incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit "A" and "B" and any other provision of this Agreement, including Exhibits."A" and "B", the provisions of Exhibit "C", "D" and "E" shall govern. . . 2.0 COMPENSATION 2.1 For the service_s rendered pursuant to this Agreement, the Consultant shall be compensated in accordance with Exhibit C (attached). 2.2 Method of Payment. In any month in which Consultant wishes to receive payment, Consultant shall, no later than the first (lst) working day of such month, submit to the City in a form approved by City, an invoice for services rendered ~prior to the date of the invoice. City will pay Consultant for all -2- expenses stated thereon which are approved by city pursuant to this Agreement no later than the last working day of said month. 2.3 Changes. In the event of any change or changes in the scope of work~ requested by City, the parties hereto shall execute an addendum to this Agreement, setting forth with particularity all terms of the Addendum, including but not limited to any additional compensation to Consultant. 2.4 Payment for Changes. Changes approved pursuant to an Addendum shall be compensated in amounts not in excess of personnel hoUrly rates shown in Consultant's Proposal (Exhibit A). 3.0 PERFORMANCE SCHEDULE 3.1 Time of Essence. .Time is of the essence in the performance of this Agreement. 3.2 SChedule of Performance. Ail services rendered pursuant to this Agreement shall be performed within any time periods prescribed in any Schedule of Performance attached hereto marked Exhibit. "E". The extension of any time period specified in the Exhibit "E" must be approved in writing by the Contract Officer. 3.3 Force Majeure. The time for performance of services to be rendered pursuant to this Agreement may be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant, including, but. not restricted to, acts of 'God or of a public enemy, acts of the government, fires, earthquakes, floods,, epidemiC, quarantine restrictions, riots, strikes, freight embargoes, and unusually'severe weather if the Consultant shall within ten (10) days of the commencement of such condition notify the Contract Officer who shall thereupon ascertain the facts and the extent of any necessary delay, and extend the time for performing the services for the period of the enforced delay when and if in the Contract Officer's judgment such delay is justified, and the Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term. Unless earlier terminated in 'accordance with Section 7.7 of this Agreement, this Agreement shall continue in full force and effect until satisfactory completion of the. services. -3- 4.0 COORDINATION OF WORK 4.1 Representative of Consultant. The following Principals of the Consultant are hereby designated as being the principals and representatives of Consultant authorized to act' in its behalf with respect to the work specified herein and make all decisions in connection therewith: Pike Oliver, Vice Chairman.. It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principal is a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Principal shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The foregoing Principal may not be changed by Consultant without the express written approval of City. 4.2 Contract Officer. The Contract Officer shall be the Assistant City Manager of City unless otherwise designated in writing by the City Manager of City.. It shall be the Consultant's responsibility to keep the Contract Officer fully informed of the progress of the performance of the services and Consultant shall refer any decisions which 'must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. In addition, neither this' Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. 4.4 Independent Consultant. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees perform the services required herein, except as otherwise set forth herein. ConSultant shall perform all services required herein as an independent Consultant of City and shall remain at all times as to City a wholly independent Consultant with only such obligations as are consistent.with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. -4- 5.0 INSURANCE, INDEMNIFICATION AND BONDS 5.1 Insurance. Consultant shall procure and maintain, at its cost, and submit concurrently with its execution of this Agreement, public liability and property damage insurahce against all claims for injuries against persons or damages· to property resulting from Consultant's performance under this Agreement. Consultant shall also carry workers' compensation insurance in accordance with California worker's compensation laws. Such insurance shall be kept in effect during the term. of this Agreement and shall not be cancelable without thirty (30) days written notice to City of any proposed cancellation. The City's certificate evidencing the foregoing and designating City as an additional named insured shall be delivered to and approved by the City prior to commencement of the services hereunder. The procuring of such insurance and the delivery, of policies or certificates evidenCing the same shall not be construed as a limitation of Consultant's obligation to indemnify the City, its Consultants, officers, and employees. The amount of insurance required hereunder shall include comprehensive' general liability, personal injury and automobile liability with limits of at least One Million Dollars ($1,000,000) combined single limit per occurrence. Coverage shall be provided by admitted insurers with an A.M. Best Rating of at least an AVII. 5.2 Indemnification. The Consultant shall defend, indemnify and hold harmless the City, its officers and employees, from and against any and all actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and attorneys' fees, for injury to or death of person or persons, for damage to property, including property owned by City, for errors and omissions committed by Consultant, its officers, employees and agents, arising out of or related to Consultant's performance under this Agreement, except for such loss as may be caused by City's own negligence or that of its officers or employees. 6.0 RECORDS AND REPORTS 6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. 6.2 Records. Consultant shall keep such books and records as shall be necessary to properly perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. The Contract Officer shall have full and free access to such books and records at all -5- reasonable times, including the right to inspect, copy, audit and make records and transcripts from such records. 6.3 ownershiP of DocUments. Ail' drawings, specifications, reports, records, docUments and other materi~ls prepared by Consultant in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights or ownership of the docUments and materials hereunder. Consultant may retain copies of 'such docUments for its own use. Consultant shall have an unrestricted right to use the concepts embodied therein. 6.4 Release of Documents. Ail drawings, specifications, reports, records, documents and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the contract'Officer. 7.0 ENFORCEMENT OF AGREEMENT 7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to 'this Agreement shall be instituted in the Superior Court of the County of Orange, State of California, or any other appropriate court in such county, and Consultaht covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 7.2 Disputes. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party in writing of its contentions by submitting a claim therefor. The injured party shall continue performing, its obligations hereunder so long as the injuring party cures any default within ninety (90) days after service of the notice, or if the cure of the default is commenced within thirty (30) days after service of said notice and is cured within a reasonable time after commencement; provided that if the default is an immediate danger to the health, safety and general welfare, the City may take immediate action under Section 7.6 of this Agreement. Compliance with the provisions of this Section shall be a condition precedent to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured. -6- 7.3 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair such right or remedy, or be construed as a waiver. No consent or approval of City shall be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.4 Rights .and'Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise, by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party, 7.5 Legal Action. In addition to any other rights or remedies, either'party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for.any default, to compel specific performance of this Agreement, to obtain injunctive relief, a declaratory judgment or any other remedy consistent With.the purposes of this Agreement. 7.6 Termination Prior 'to Expiration of Term. The City reserves the right to terminate this Agreement at' any time, with or without cause, upon thirty (30) days written notice to Consultant, except that where termination is due to the fault Of the Consultant and constitutes an immediate danger to health, safety and general welfare, the period of notice shall be such shorter time as may be. appropriate. Upon receipt of the notice of termination, Consultant shall, immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer thereafter. 7.7 Termination fOr Default of Consultant. If termination is due to the failure of the Consultant to fulfill its .obligations under this Agreement, City may take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated, provided that the 'City shall use reasonable efforts to mitigate damages, and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed to City. 7.8 Attorneys Fees. If either party commences an action against the other party arising out of or in connection with this Agreement or it subject matter, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the losing party. 8.0 CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION 8.1 'Non-Liability of City Officers and Employees. No officer or employee of City shall be personally liable to the Consultant, or any successor-in-interest, in the event of any default or breach by ~he City or for any amount which may becom~ due to the Consultant or its successor, or for breach of any obligation'of the terms of this Agreement. 8,2 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no-discrimination or segregation in the performance of or in cOnnection with this Agreement regarding any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry. Consultant -shall take affirmative action to insure that'applicants and employees are treated without regard to their race, color, creed, religion, sex, marital status, national origin, or ancestry. 9.0 MISCELLANEOUS.PROVISIONS 9.1 Notice. Any notice, demand, request, consent, approval, or communication either party desires or is required to give to'the other party or any other person shall be in writing and eithe'~ served personally or sent by pre-paid, 'first-class mail to the address set forth below. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section. To City: CITY OF TUSTiN 300 Centennial Way Tustin, CA 92680 Attention: Christine Shingleton Assistant City Manager (Contract Officer) -8- To Consultant: Pike Oliver Vice Chairman Interra 1601 Dove Street Suite 105 Newport Beach, CA 92660 Pam Engebretson President Interra 2265 Fort Stockton Drive San Diego, CA 92103 9.2 Integrated Agreement. This Agreement contains all of the agreements of the parties-and cannot be amended or modified except by written agreement. 9.3 Amendment. ~his Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 9.4 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement, which shall be interpreted to carry out the intent of the parties hereunder. 9.5 Corporate Authority. The persons executing this .Agreement 'on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Agreement the parties hereto are formally bound to the provisions of this Agreement. -9- IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. Dated: "City" CITY OF TUSTIN, a municipal corporation By: William Huston City Manager APPROVED AS TO FORM: Lois Jeffrey~ ~Y u City Attorney "Consultant" Interra By: Pam Engebretson President, Interra By: Pike Oliver Vice Chairman, Interra CAS: kd\CONSULTS\interra. -10- EXHIBIT "A" Consultant's Proposal EXHIBIT "B" City's Request For Proposal EXHIBIT "C" Special Requirements EXHIBIT "C" Special Requirements · · · · · · · The Contract Officer shall be responsible for certifying payment applications, administering change orders, and shall be the primary liaison with the Consultant. All items listed will require approval by the Contract Officer. Consultant shall not release to the public or the press any information specific to the project required under the Agreement without prior authorization by Contract Officer. All inquiries made of Consultant shall be immediately referred to Contract Officer. A no-fee business license shall be provided by the City to Consultant. Consultant shall present to the City certificates of insurance and endorsement forms verifying that the 'Consultant has the insurance as required by this Agreement. Said forms shall be reviewed and approved by the City Attorney. A certificate of insurance form is attached. If Contract Officer determines that a product deliverable is unacceptable, either before or after a draft or final draft is issued, because it does not conform to the requirements of this Agreement, the Consultant shall submit a revised report or product at Consultant's expense. Consultant shall utilize those professional and sub- contractors to perform services as identified in ConSultant's proposal. No substitution shall be made without the advance written approval of the Contract Officer, after review of the proposed substitute Consultant's experience and qualifications with a written explanation of necessity for the change. No increase in compensation or reimbursable salary rates will be allowed when personnel or firm substitutions are authorized. The Consultant shall review and replace project or sub- Consultant's personnel assigned to project who do not perform assigned duties in a manner satisfactory to Contract Officer. . The Consultant shall be required to meet with Contract Officer and City staff as determined necessary to discuss elements of the scope of work and project's progress. · Monthly progress reports shall be submitted by Consultant with billing requests. At minimum these reports shall specify the period reported, tasks completed, tasks underway, percent of project completed and strategies to solve any timing delays. 10. Field Investigations maybe necessary. The Consultant shall obtain all necessary field data and make site investigations and studies necessary to the property accomplishment of the work required under this contract. 11. City is intending to fund the Scope of Services in the Agreement through Redevelopment Agency funds and grant funds secured from the federal Department of Housing and Urban Development and the Department of Defense Office of Economic Adjustment. Consultant shall comply with all applicable federal, state and local laws and regulations governing the funds provided under this Agreement including but not limited to 32 CFR 278 - "Administrative Requirements for Assistance to State and Local Governments," Office of Management and Budget (OMB) Circulars: A-87 - "Cost Principles for State and Local Governments," A-133 - "Audit Requirements for state and'Local Governments," and "Drug-Free Workplace Requirements.; Notice and Final 'Rule." Records for all billings, payr611, Consultant fees and direct reimbursable expenses pertaining to the project shall be maintained on the basis of 'accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. All records shall be available for inspection by the City or the City's representative at mutually convenient times. 12. Consultant acknowledges that the timetable for project milestones contained on page 2 of Exhibit A (Consultant Proposal) have slipped considerably. 13. To clarify any.inconsistencies between Exhibit A and B, Attachment C-2 is provided as an elaboration of specific tasks and work products that are required to be completed pursuant to this Agreement. C-2 EXHIBIT C Attachment C-1 Certificate of Insurance EXHIBIT C Attachment C-2 STRATEGIC MARKETING PLAN TASKS AND PRODUCT DELIVERABLES TASK I STRATEGIC FRAMEWORK In addition to the program approach statement and ~ask I descriptions on pages 3-4 in Exhibit A: Ae Prepare a programming outline to codify the vision, establish enduring principles, clarify the objectives and delineate a framework for the Marketing Plan preparation and implementation. B, Prepare an analysis of the Reuse Plan's strengths, weaknesses, opportunities and threats (SWOT) in the context of developing near'term and long-range marketing goals and objectives, identifying target audiences and market segments and strategies for achieving the most effective means for outreach to individual markets. C . Review of existing marketing efforts and materials and identification of strategic fit oPportunities for dove-tailing existing marketing efforts with the proposed Marketing Plan, as well as identification of distinguishing elements to be addressed in the proposed plan. WORK PRODUCTS - Provide a memorandum report to City staff to include: · Strategic Marketing Plan Programming Outline · SWOT Analysis Report and a review of existing marketing efforts and opportunities for a coordinated approach · Detailed schedule for completion of all required work products. Five (5) screen copies for review and comment by City, five (5) corrected final copies and one (1) reproducible. Consultant shall provide five (5) project notebooks for use by City staff in organizing and aggregating all memorandum reports. Attachment C-2 Page 2 TASK II MARKET ASSESSMENT In addition to the Task 2 description on page 4 of Exhibit 4: Ae Review and update the KMG (11/96) market demand analysis to assess the current market conditions and to identify emerging market trends and opportunities. The assessment should relate to the Reuse Plan proposed land uses in the context of current market conditions and emerging trends, including the identification of physical and financial constraints, site preparation and delivery issues, highest and best use enhancement alternatives, competitive market positioning, and opportunities for the utilization of existing structures. B · Prepare a catalog of · market outreach targets including industry leaders and decision makers, industry trade groups, and qualified · commercial, industrial and residential developers/builders. C · Identify potential users for near-term occupancy of existing facilities at MCAS Tustin. De Identify and recommend potential economic incentives (including the LAMBRA designation) and benefit packages to be offered to users, identify how to maximize the value and exposure of such benefit packages, and develop a process to identify and market the incentives and benefit packages to particular business users, developers, investors and the real estate brokerage community. WORK PRODUCTS - Provide five (5) screen copies for review and comment by City, five (5) corrected final copies and one (1) reproducible of individual or combined memorandum reports documenting the above studies and' materials which will include: · Market Assessment · Catalog of target markets, potential users, industry trade groups and real estate industry entities to be compiled and delivered in an ACT! format data base. · A summary of recommended economic incentives and interim marketing/commercialization strategy for their dissemination. Attachment C-2 Page'2 TASK III MARKET VISION, THEME & IDENTITY In addition to Task III description on page 5-6 of Exhibit A: a. Develop a market vision for the project area which conveys the site's overall development concept and leads to the identification of an appropriate market identity. Establish a market positioning strategy and theme as a means identifying the unique site attributes and premises in comparison to the surrounding' competitive market -that will · serve to create distinctive place in the market for the planned development. Ce Prepare defined tactics and proprietary messages that can be used to market the site, establishing selling propositions, communications themes.and strategic messages which will form foundation for the marketing platform. De Develop a name for the site which conveys a sense of "place", the quality and scale of the planned community, and the distinctive market position to be developed at MCAS Tustin, as well as any names for the specific planning areas/uses (i.e. industrial vs. residential) within the project area. E · Prepare a comprehensive, enduring visual image program which includes a master graphics design standards document and the design of the planned community logo, logo typeface, colors, and materials, as Qell as other visual vocabulary elements to represent the site and the planning sub-areas of the sit. e. The visual image program components, including report covers, master pages, divider sheets, web page format, initial broad audience brochure copy and layout, site signage program and other format templates including camera ready art, will be prepared and delivered in a desk top publishing system format to be mutually determined by the Consultant and the Agency. F· Prepare an umbrella communications and media program including, press kit components, web site 'program, and a comprehensive marketing and media calendar that will guide the execution of the strategic marketing .plan in terms of priorities, proposed schedule and cost parameters. Attachment C-2 Page 3 WORK PRODUCTS - Provide five (5) screen copies for review ~nd comment by City, five (5) corrected final copies, one (1) reproducible of individual or combined memorandum reports to include the items below. Any sub-task products noted below can include two screen copies for review and comment by City and one camera ready reproducible. Vision Statement Positioning Statement and Theme Project Name · Visual Image & Identity Program and Designs iincluding electronic, desk top publishing and camera ready art) · Graphics Master Plan Document (including specific design concepts to be applied by market type and medium, with associated costs estimate) · Basic Press Kit and .initial media communications for printing and final production plan for press outreach · Program and strategy for MCAS-Tustin Website · Marketing and Media Calendar (including priorities, identified special events, schedule and costs) As a separate sub-task, Consultant shall also be responsible as part of the Scope of Services in: Developing the content, copy and visual imaging, cameral ready art for a broad audience marketing brochure. The Consultant will not be responsible for printing costs on final production. Designing the schematic template for all marketing signage and infrastructure signage Designing the template for a newsletter letterhead format to be implemented for the project. TASK IV STPJ%TEGIC MAR~TING PLAN In addition to description of the Strategic Plan description on page 6-7 of Exhibit A, prepare a compilation final report which includes the results of Tasks I, II and III. The strategic framework for management of the marketing for MCAS-Tustin shall more specifically include: Attachment C-2 Page 4 k. A Plan for the initial marketing period to include recommendations for a communications.and media programming mix, schedules and a range of media budgets Be A longer range marketing plan which explores alternative development programming and site delivery scenarios in the context of potential changing market conditions WORK PRODUCTS - Provide five (5) screen copies for review and comment, 20 final copies and one reproducible of a bound or three hole'punched notebooked final strategic marketing plan. TASK V PIJ~N EXECUTION' Unless otherwise included as a required Scope of Services identified in Tasks I-IV, Task V is considered an Additional Scope of Services and will be separately negotiated. EXHIBIT "C- 1" Certificate of Insurance EXHIBIT "D" Schedule of Compensation EXHIBIT "D" Schedule of Compensation Compensation As compensation for the Consultant's Scope of Services under this Agreement, the City shall pay Consultant for the actual time of work performed and material costs expended in a not- to-exceed fixed amount of $130,000. Expense Reimbursement · The Consultant's not-to-exceed compensation for the Scope of Services under this Agreement may include reimbursement for expenses. The Agency shall reimburse Consultant for direct expenses such as and including postage, telephone charges~ deliveries, and reproduction costs subject to the following restrictions: a · Time travel to and from Tustin City Hall and to and from Consultant offices and Sub-consultant offices shall not be billable. b, Itemized payment statements shall set forth in detail all actual reimbursement expenses during'the preceding month. Compensation of Additional Services 3. In addition to the Scope of Services under this Agreement, City reserves the right to request specific additional services in the future from Consultant and to negotiate the actual compensation structure for these tasks. The type of contemplated additional services may include: Implementation and execution of Marketing Strategies including interim (short-term leasing), development ventures and full disposition of property. Preparation of a Request for Qualifications for interests in Development Agreement negotiations. Act as a point of contact and referral point for screening prospective tenants, developers and commercial brokers. D-1 Recruit tenants both directly and by use of brokerage involvement. In the event the city requires services in addition to the Scope of Services, said services must first be approved in writing by .the Contract Officer. Any compensation for said services shall also .be agreed to in writing by the City and Consultant. Method of Payment · As a condition precedent to any progress payment to Consultant under this Agreement, Consultant shall submit monthly to the City a statement of account which clearly sets forth by dates the designated items of work, as well as reimbursable expenses, for which the billing is submitted. a. Ail payment requests shall identify each task required by the Agreement, percent of completion, amount of actual reimbursable expenses and requested amount to be billed against each task. be The Consultant may bill up to the maximum projected budget for each task completed less 10%. The retention amount for individual tasks will be paid after the contract officer has evaluated the Consultants work products in that specific task and made a determination that requirements of the scope of work have been satisfactorily fulfilled. Co Each invoice shall also indicate the actual hours worked, the billing rate, personnel classification, hourly billable rate and the amount of fees being billed fOr all Consultant personnel. de Ail hours charged to the project shall be supported at Consultant's office by detailed time sheets. e · Ail invoicing shall be based on actual hours worked by an individual times the fixed hourly rate for that individual and their corresponding firms as specified by the Consultants' Proposal. Actual hours shall be hours spent on assigned project tasks. Travel time to and from the City's offices and to and from the' Consultants' offices shall not be billable. D-2 Timing of Payment · The City shall review Consultant's monthly statements and pay Consultant for services rendered and costs incurred hereunder, at the rates and in the amounts provided hereunder,.on a monthly basis in accordance with the approved monthly statements provided, however, that the last $20,000 compensation requested is anticipated to be funded from grant funds not available until July 1, 1998. Consultant agrees to withhold this portion of any payment request until July 1, 1998. D-3 EXHIBIT "E" Schedule of Performance EXHIBIT "E" Schedule of Performance 1. Consultant shall attempt to complete the Scope of Services under this Agreement within five (5) months of receipt of a Notice to Proceed. 2. It is anticipated that a Notice to Proceed will not be issued until late January 1998. Consultant -shall provide a more detailed schedule of all tasks to be accomplished and products produced within 15 days of receipt of a Notice to Proceed for review and acceptance by the Contract Officer. E-1