HomeMy WebLinkAbout06-18-2019 Item 06 - Economic Development Agreements 2019-2021
Department Name: Administration
Cost Center: 1004
For Agenda of: June 18, 2019
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Charlene Rosales, Economic Development Manager
SUBJECT: ECONOMIC DEVELOPMENT AGREEMENTS 2019-2021
RECOMMENDATION
Authorize the City Manager to negotiate and approve the two-year agreements towards economic
development partnerships between the City of San Luis Obispo and the Cal Poly SLO HotHouse,
Downtown SLO and the Economic Vitality Corporation of SLO County.
DISCUSSION
The City’s Economic Development Program is responsible for implementing the policies laid out
in the City’s Economic Development Strategic Plan (EDSP). As part of the City’s ongoing
efforts to maintain and grow a strong local economy, the Economic Development Program
provides services in partnership with the above-mentioned organizations in order to support a
healthy entrepreneurial ecosystem, a vibrant downtown and connectivity with businesses and
industries throughout the region. These organizations leverage the work of the City in addressing
the needs of business owners and the development of the local workforce.
Background
• The City has maintained ongoing two-year agreements towards economic development
initiatives with the following organizations:
Cal Poly SLO HotHouse (Attachment A): Supports students and community members in
starting new, innovative businesses. The Cal Poly SLO HotHouse is home to coworking
space available to students and the community, the Small Business Development Center and
the Business Incubator Program. Companies that have graduated from the Incubator Program
and are growing in San Luis Obispo County include Flume, Whitefox, Bishop Peak
Technology, Reduce Reuse Grow, Ulzi, BoltAbout and several others. The consultant team at
the HotHouse provided assistance to just over 250 companies in 2018 and have been tasked
by the Small Business Administration to support 464 Companies in 2019. The City funded
the HotHouse $25,000 per year in 2017-19.
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Downtown SLO (Attachment B): Fosters an economically vibrant downtown by providing
promotional activities to benefit downtown businesses including Farmers’ Market, Concerts
in the Plaza and seasonal holiday events. The business improvement association runs the
Clean and Safe Ambassador Program which provides litter and graffiti removal, sidewalk
and gutter sweeping and cleaning services beyond the baseline services provided by the City.
Downtown SLO also provides an educational series on a wide range of topics for business
owners, managers and employees. The City collected revenue through the Downtown
Business Improvement District assessments which was passed directly to Downtown SLO.
Economic Vitality Corporation (EVC) of San Luis Obispo County (Attachment C): Stimulates
the economic expansion of the County by generating jobs, increasing investments in local
communities and promoting the start-up, growth and attraction of businesses. Assists
businesses in accessing capital and facilities, partners with the SLO County Office of
Education to address college and career readiness, partners with Cal Poly and Cuesta College
on workforce development programs and convenes industry leaders to identify opportunities
and obstacles to local business growth. The City funded the EVC $12,500 per year in 2017-19.
This report requests authorization for the City Manager to negotiate the final funding and scope of
work for each of these agreements. Substantial and significant discussion needs to occur with the
EVC to identify quantifiable and measurable outcomes associated with this investment and ensure
that the EVC is carefully coordinating its efforts with other regional economic development
entities. Should these details not be secured, staff intends to allocate funding to other partners.
Minor changes within the contract with Downtown SLO have been mutually agreed upon and no
changes are proposed within the scope of work for the SLO HotHouse. The current agreements
with each organization have been provided for reference.
Policy Context
The recommendation for renewing agreements for the years 2019-21 are supported by the City’s
EDSP (Attachment D)1 and the adoption of the 2019-21 Major City Goals of “Downtown
Vitality” and “Fiscal Sustainability and Responsibility”.
Public Engagement
Through forums and surveys, community members expressed a desire for the downtown to
remain a focus as part of the 2019-21 Major City Goals. In addition, through the existing
partnerships, the City’s Economic Development Manager engages frequently with these
organizations’ members and constituents, representing the City on Cal Poly’s Local Economic
Development Committee and the EVC’s Building Design and Construction Cluster, Downtown
SLO’s Economic Activities Committee and as a liaison to Downtown SLO’s Board of Directors.
1 Economic Development Strategic Plan, revised March 17, 2015; Section 4 “Build on Existing Efforts and
Strengthen Regional Partnerships”
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CONCURRENCE
The proposed agreements for the Cal Poly SLO HotHouse and EVC have the concurrence of the
Administration department. The proposed agreement for Downtown SLO has the concurrence of
the Administration, Police, Public Works and Utilities departments.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20, 2020-21
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund2 $108,400 $74,000 $34,400 $0
State
Federal
Fees
Other: (Special
Fee District)3
$260,400 $260,400 $0 $260,400
Total $368,800 $334,400 $34,400 $260,400
ALTERNATIVES
The City Council may choose to not authorize the City Manager to negotiate and approve the two-year
agreements. This is not recommended as ongoing economic development is a high priority for the City
and Downtown Vitality and Fiscal Sustainability and Responsibility are 2019-21 Major City Goals.
The City Council may choose to approve partial funding for any or all partnership agreements.
This is not recommended as the proposed agreements are cost effective tools in advancing the
City’s economic development initiatives and do not reflect any increase in existing costs.
2 Agreements will be funded through the approved 2019-21 Economic Development Program Operating Budget
(June 4 Preliminary Financial Plan, Packet Page 132).
3 Agreement will be funded through the approved 2019-21 Special Revenue Assessment (June 4 Preliminary
Financial Plan, Packet Page 136)
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Attachments:
a - Cal Poly SLO HotHouse 2017-19 Agreement
b - Downtown SLO 2017-19 Agreement
c - Economic Vitality Corporation of SLO County 2017-19 Agreement
d - COUNCIL READING FILE SLOEDSP_StrategicPlan_Revi2015final
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AGREEMENT
THIS AGREEMENT is entered into as of , by and
between the SAN LUIS OBISPO DOWNTOWN ASSOCIATION, a 501(c)(6) non-profit
corporation organized under the laws of the State of California, with a place of business at
1108 Garden Street, San Luis Obispo, California 93401 ("SLODA"), and the CITY OF
SAN LUIS OBISPO, a municipal corporation and charter city ("City").
RECITALS:
A. On October 6, 1975, the City Council adopted, and subsequently amended on
various occasions, Ordinance 649 (1975 Series) (collectively, "the Ordinance")
creating the Downtown Parking and Business Improvement Area ("DPBIA") in the
downtown area of San Luis Obispo, and levying the authorized assessment on all
businesses within the area, and
B. The City and SLODA have benefited from a close working relationship for the
benefit of business and tourism in the downtown area of San Luis Obispo since the
inception of the Downtown Business Improvement Area in 1975 and desire to
continue their relationship for the betterment of tourism and business; and
C. SLODA is uniquely qualified to provide the services contemplated under this
contract due to its intimate knowledge of Downtown, unique connection to
businesses in the Downtown, and its long experience producing and providing
promotional services for the benefit of Association members; and
D. The SLODA has historically added substantial value to the events produced under
contract with the City by utilizing the financial resources of its membership and
dedication of its staff that in total far exceed the DPBIA assessment revenues; and
E. The SLODA brings experienced and competent management of the subcontractors
that it hires for the contracted events; and
F. Both parties acknowledge that the Thursday Night Promotions, Concerts in the
Plaza and Holiday Activities are unique events that bring vibrancy to the
Downtown city streets and public areas;
G. Having determined that promotional activities to benefit business and tourism activities
in the Downtown area of San Luis Obispo are an appropriate use of DPBIA assessment
proceeds, since such activities are expected to maintain and increase revenues derived
by the City from the Downtown area and to preserve and enhance the unique character
of the Downtown for the special benefit of Downtown area businesses, and further,
having determined that SLODA is able to conduct such promotional activities, the City
Council desires to contract with SLODA to conduct promotional activities in the
Downtown area of San Luis Obispo; and
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H. The City is authorized to enter into a contract to provide services to the members of the
DPBIA and to administer the assessment collected for that purpose; the SLODA, a
501(c)(6) organization, wishes to enter into this contract with the City to provide agreed
upon services to the DPBIA members.
NOW THEREFORE, THE PARTIES AGREE as follows:
1. Scope of Services. SLODA will conduct promotional activities to benefit business
and tourism activities in the Downtown area of the City, more specifically set forth in this
Agreement as the Scope of Services, attached hereto as Exhibit A and incorporated as if
fully set forth herein, as limited by State law and the Ordinance, and subject to any
modifications approved in writing by the City Manager.
During the term of the contract, the Scope of Services, Exhibit A may be amended by
mutual consent of the parties. The City Manager is hereby authorized to approve periodic
amendments to Exhibit A without further consent by Council to the extent that any such
amendments do not result in the elimination of required Special Events, as set forth in
Exhibit A.
2. Financial Reporting. SLODA will prepare and file with City, consistent with City
policy, quarterly financial reports within 60 days after the end of the quarter showing
qualifying expenditures made by SLODA and shall, upon request by City, produce
supporting invoices, receipts, vouchers and statements showing how the DPBIA revenues
have been expended consistent with this Agreement. Such financial reports shall include a
line-item schedule that matches expenditures with specific, budgeted amounts and
activities. The reports will be filed with the City Finance Director consistent with the City’s
financial reporting policies and practices, and as reasonably requested by the Finance
Director.
In addition to interim quarterly reports, the SLODA shall contract with an
independent certified public accountant to prepare an annual compilation of the SLODA
financial operations related to qualifying revenues and expenses. Said compilation shall
be completed every year, at the end of the contract period and shall show the purposes to
which the DPBIA funds were put such as the name and date of the event and the allocation
of TPBID funds relative to the costs of the event. The compilation shall be conducted in
accordance with accounting standards generally accepted in the United States. The
objective of a compilation is to assist management in presenting financial information in
the form of financial statements without undertaking to obtain or provide any assurance
that there are no material modifications that should be made to the financial statements.
The SLODA fiscal year shall be July 1 to June 30; and the compilation shall be completed
and submitted to the City’s Finance Director within 180 days of the fiscal year end. The
City reserves the right to request an audit of the SLODA financial statements and the
SLODA agrees to comply with such a request, in intervals no more often than every four
years nor less often than every six years.
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3.Quarterly Activity Reports. At the time the interim quarterly financial reports are
filed, SLODA will also file with the City Manager a report of the activities of SLODA and
its subcontractors and the respective accomplishments of each during the period specified
in the financial report.
4.Term. The term of this Agreement will commence July 1, 2017 ending on June
30, 2019 to match the two year budget cycle of the City. The contract may be renewed
upon approval of the Agreement, including the Scope of Services, by the City Council. The
City or the SLODA may terminate this Agreement and any rights, duties and liabilities
accruing in this Agreement at any time by giving written notice of election to terminate to
the other party at least thirty (30) days prior to the end of the fiscal year.
5.DPBIA Funding Restrictions. The parties acknowledge that DPBIA funds shall
be used exclusively for activities within Exhibit A and that all DPBIA funds allocated by
the City shall be subject to the restrictions imposed on DPBIA monies by the Ordinance
and State law.
6.Limited Use of DPBIA Funds. SLODA will use none of the funds it receives
from this Agreement for any purpose not enumerated in the Ordinance, including but not
limited to, any expense (including administration and overhead) in support of a SLODA
Political Action Committee or any other political entity or activity. The City recognizes
that the SLODA may engage in such activities on behalf of its members, independent of
its contract with the City and does not attempt through this Agreement to limit those
activities, so long as such activities do not utilize DPBIA funds.
7.Accounting for DPBIA Assessments. DPBIA funds may be used to finance fund-
raising activities intended to generate additional revenue for use by the SLODA. However,
the sum of all DPBIA funds used for this purpose shall be accounted for and proceeds from
the fund-raiser equal to that sum shall be used for purposes stated in the Ordinance and
conforming to the purposes of the assessment as defined by State law. Further, such use of
DPBIA funds shall be specifically described in the periodic reports described in paragraph
2 of this Agreement.
8.City Support for SLODA Activities. The City will continue to provide staff
support and services in accordance with the SLODA Scope of Services attached hereto as
Exhibit A. The SLODA shall pay to the City the sum of One Hundred Forty Dollars and
15/100 ($140.15) per market for set up and removal of barricades during the 2017-18 fiscal
year. Said sum shall be adjusted each July 1 by the Consumer Price Index-All Urban Areas
(CPI-U) for February as published annually in March by the Bureau of Labor Statistics, all
cities average for the prior calendar year.
It is also agreed that SLODA will reimburse City for all costs incurred by City in providing
services during the term of this Agreement relating to other SLODA events or promotional
services not addressed in this contract. These costs will be determined and certified in
accordance with City policies applicable to other non-profit organizations and City will
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provide SLODA with invoices for such services, which will be due and payable by SLODA
consistent with standard City policies and practices.
9.Monthly Remittance of DPBIA Funds to the SLODA. The City will cause to be
paid to SLODA the total amount of DPBIA funds collected by the City during each month
within thirty (30) days of the end of the month. The City recognizes that the SLODA relies
on the City to collect the assessment and to enforce the payment of the assessment via its
business license process. To insure compliance with the Business Tax and License rules,
the City and the Downtown Association collaborate to encourage compliance. All business
within the City are subject to the same rules and same enforcement procedures.
10.City Staff Rights to Attend SLODA Board Meetings. SLODA shall continue to
notify the City via the City Manager or his/her appointed representative of all regular
meetings of the Board of Directors and shall have the right to attend all such regular
meetings.
11.Independence of SLODA. Neither the City nor any of its officers or employees
will have any control over the conduct of SLODA or any of its employees, except as
provided above, and SLODA expressly warrants not in any manner or at any time to
represent that its officers, agents, servants or employees are in any manner the officers,
agents, servants or employees of the City, it being distinctly understood that SLODA is
and at all times will remain as to the City, an independent contractor, and the obligations
of SLODA to the City is solely as prescribed by this Agreement.
12.Electricity and Tree Lighting Program. The City and the SLODA have agreed
to work toward accomplishing additional goals set forth in Exhibit B relating to electricity
for Thursday Night Promotions (TNP) and tree lighting. These provisions are separate and
distinct from the Exhibit A Scope of Services for which DPBIA funds are provided.
Furthermore, the provisions of Exhibit B shall survive termination of this contract.
13.Farmer’s Market Encroachment Permit. By no later than June 30, 2018,
SLODA shall obtain from City an encroachment permit for its Farmer’s Market. At all
times thereafter, SLODA shall have an encroachment permit for its Farmer’s Market
activity. The encroachment permit will be valid for one year and may be extended by City
upon SLODA submitting proof of adequate insurance.
14.Dispute Resolution between SLODA and its Subcontractors. SLODA shall
include a dispute resolution clause in all contracts with subcontractors furnishing services
related to contracted events. The dispute resolution clause shall provide a clear and concise
process for resolution of disputes that arise between the SLODA and its subcontractors.
15.Assignment. This Agreement contemplates that SLODA will render special
services that it is uniquely able to provide, and it is recognized by the parties that an
inducement to City for entering into this Agreement was, and is, the ability of SLODA to
render these special services. Neither this Agreement nor any interest in this Agreement
may be assigned by SLODA, except that SLODA may, on written consent of the City
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Manager or designee obtained in advance, assign any moneys due, or to become due, to
SLODA for purposes consistent with this Agreement. SLODA agrees not to subcontract
any portion of the performance contemplated and provided for in this Agreement, except
that SLODA may enter into subcontracts for the sole purpose of carrying out promotional
activities within the scope of the Ordinance with the consent of City. Nothing contained in
this Agreement is intended to or will be construed as preventing SLODA from employing
or hiring as many employees as it may deem necessary for the proper and efficient
execution of this Agreement.
16.Insurance. SLODA shall obtain and maintain insurance as set forth in Exhibit C
hereto, the requirements of which are incorporated herein. Each insurance policy shall be
endorsed to state that coverage shall not be suspended, voided or canceled by either party
except after thirty (30) days' prior written notice to City, and shall be primary and not
contributing to any other insurance or self-insurance maintained by City.
SLODA shall deliver to City certificates of insurance and original endorsements for
approval as to sufficiency and form prior to the start of performance hereunder. The
certificate and endorsements for each insurance policy shall contain the original signature
of a person authorized by that insurer to bind coverage on its behalf. "Claims made"
policies of insurance are not acceptable unless the City Risk Manager determines that
"occurrence" policies are not available in the market for the risk being insured. If a "claims
made" policy is accepted, it must provide for an extended reporting period of not less than
one hundred eighty (180) days. Such insurance as required herein shall not be deemed to
limit SLODA's liability relating to performance under this Agreement. City reserves the
right to require complete certified copies of all said policies at any time. Any modification
or waiver of the insurance requirements herein shall only be made with the approval of the
City Risk Manager. The procuring of insurance shall not be construed as a limitation on
liability or as full performance of the indemnification provisions of this Agreement.
To the extent that SLODA subcontracts certain activities pursuant to paragraph 14 of this
Agreement, SLODA may comply with the requirements of this paragraph 15 by providing
certificates of insurance naming SLODA and the City of San Luis Obispo as separate
“additional insured” under the subcontractor's insurance, providing that the subcontractor's
insurance meets or exceeds the insurance requirements of this paragraph 15, all subject to
the approval of the City Risk Manager.
17.Hold Harmless and Indemnification. SLODA shall protect, defend, indemnify
and hold City, its officials, employees, and agents (collectively in this Section referred to
as "City") harmless from and against any and all claims, demands, causes of action, losses,
damages, and liabilities, whether or not reduced to judgment, which may be asserted
against City arising from or attributable to or caused directly or indirectly by SLODA,
SLODA's employees or agents in the performance of work under this Agreement, or any
alleged negligent or intentional act, omission or misrepresentation by SLODA, SLODA's
employees or agents, which act, omission or misrepresentation is connected in any way
with performance of work under this Agreement. If it is necessary for purposes of resisting,
adjusting, compromising, settling, or defending any claim, demand, cause of action, loss,
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damage, or liability, or of enforcing this provision, for City to incur or to pay any expense
or cost, including attorney's fees or court costs, SLODA agrees to and shall reimburse City
within a reasonable time. SLODA shall give City notice of any claim, demand, cause of
action, loss, damage or liability within ten (10) calendar days.
18.Notice. Any notices to be given under this Agreement, or otherwise, may be given
by enclosing the same in a sealed envelope, addressed to the party intended to receive the
same, at its address and by depositing the same in the U. S. Postal Service as regular mail,
postage prepaid. When so given, notice will be effective from the time of mailing of the
notice. For these purposes, unless otherwise provided in writing, the address of the City
and the proper person to receive any notices on its behalf is the City Manager, 990 Palm
Street, San Luis Obispo and the address of the SLODA is 1108 Garden Street, Suite 210,
San Luis Obispo, California 93401.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
on _____ .
SAN LUIS OBISPO DOWNTOWN ASSOCIATION,
A 501(c)(6) Corporation.
By:
Dominic Joseph Tartaglia, Executive Director,
SLO Downtown Association
CITY OF SAN LUIS OBISPO
By:
Heidi Harmon, Mayor
ATTESTATION:
By:
Carrie Gallagher, City Clerk
APPROVED AS TO FORM:
By:
J. Christine Dietrick, City Attorney
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EXHIBIT A
SCOPE OF SERVICES
I. SPECIAL EVENTS:
The events and/or activities set forth and defined below are Special Events the continuation
of which the City considers integral to the fulfillment of SLODA’s obligations under the
Agreement. As such, the City agrees to continue to provide, at the mutually agreed cost to
the SLODA, the enumerated municipal services that have traditionally been provided to
the SLODA in conjunction with the events/activities as set forth below and the SLODA
shall continue to provide the following Special Events and related services to the
Downtown:
1)Holiday Activities: Holiday Activities include some of the County’s most popular
holiday events including:
a)The Annual Holiday Parade, a free event that features nearly 100 entries and
winds its way through the Downtown streets early in the holiday season;
b)Santa’s House in Mission Plaza, a free service opening the day after Thanksgiving
and operating daily through Christmas Eve. Thousands of children visit the House
from all over the county and beyond;
c)Classic Carousel in Mission Plaza, a contracted activity by the Downtown
Association. Each year, an independent operator brings in a full sized carousel that
is set up adjacent to Santa’s House and operates the same hours as the House.
2)Concerts in the Plaza: Concerts in the Plaza are held in Mission Plaza showcasing
local (tri county area) bands, providing the highest level of quality in all aspects of the
production such as stage and sound, promotional marketing materials, a high level of
staffing and security, dozens of volunteers and quality food and beverage vendors. The
Downtown Association will be given priority in Mission Plaza for the Friday night
concert series beginning the first Friday in June and ending on the thirteenth contiguous
Friday hence, subject to the following:
a)In those instances, where the concert conflicts with Mission College Preparatory
School graduation activities that take place in Mission Plaza, the series will begin
on the second Friday in June allowing Mission College Preparatory School priority
use of the plaza for graduation.
b)In years when the series starts on the second Friday in June, it will still run the full
thirteen contiguous Fridays.
3)Thursday Night Promotions: (TNP): an event that showcases Downtown and
Downtown businesses to visitors, both locals and tourists, and offers opportunities for
Downtown businesses, other eligible non-Downtown businesses, produce vendors,
non-profit organizations and other community groups to sell their products and
services, fundraise, or provide information. TNP is also often generically referred to
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as “Farmers Market,” “the market,” “Thursday night,” or other various combinations
of those names.
City Services in Support of Special Events
City services in support of the above events have traditionally included the following,
which will continue uninterrupted:
1. Public safety support at levels determined appropriate by the City, including
holiday parade escort.
2. Placement and removal of street barricades and coordination of street closures for
holiday activities and TNP
3. Placement and removal of City-owned portable restrooms for TNP.
4. Banner placement and advertising at 50% of standard City fees. (Note: SLODA
shall retain its priority position with regard to the placement of street banners that
promote activities that benefit tourism and business in the district, in addition to the
Special Events above, within the scope of the Agreement, but shall be charged fees
consistent with City policy for the placement of such banners)
5. Special Events Permit processing at 50% of standard City fees
6. Street clean-up following Special Events
7. Holiday tree placement and removal unless and until alternatives for a live tree are
completed and a live tree is installed.
8. Free rental of Mission Plaza for placement of Santa’s House and carousel and for
Concerts in the Plaza.
SLODA Services in Support of Special Events:
SLODA services in support of the above events have traditionally included the following,
which will continue to enhance the success of the events:
1. Booth space at TNP for City departments at no cost subject to space availability
2. Noticing via meter flyers for TNP
3. Marketing and coordination of City-related events at TNP at no cost including but
not limited to:
a. Fire Prevention Night
b. Law Enforcement Night
c. Public Works Night
d. Arbor Day activities
e. City of San Luis Obispo Parks and Recreation activities
f. City of San Luis Obispo Utilities activities
g. San Luis Obispo Transit activities
h. City of San Luis Obispo tourism activities
II. ONGOING SERVICES:
In addition to the Special Events set forth above, SLODA shall provide, as needed, the
following Ongoing Services to the Downtown. The costs of any City services required or
requested in support of these Ongoing Services shall be allocated to the SLODA consistent
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with City policies applicable to other not for profit entities and pursuant to the terms of the
Agreement.
1.Parking/Transportation
a.Distribute employee and customer parking brochures to targeted groups.
b.Work closely with City staff to analyze and make recommendations to the City Council
on ways to address employee parking issues.
c.Work closely with City staff on the development of downtown construction public
information programs.
d.Work closely with City staff on parking management plan and any parking and access
programs that benefit the community.
2.Downtown Maintenance
a.Work closely with City staff to give input on sidewalk scrubbing schedule.
b.Disseminate cleanliness and safety information to members through publications and
presentations.
c.Work with City staff to get trash and recycling receptacles cleaned.
d.Continue Downtown Forester program in assisting with tree maintenance.
3.Economic Development Issues
a.Work closely with City staff to implement the City’s Economic Development Strategic
Plan to maintain Downtown retail health.
b.Work closely with City staff on issues related to undesirable and/or criminal behaviors
in the Downtown, such as aggressive panhandling, graffiti, and drunk-in-public
behaviors.
c.Continue to coordinate with City and Chamber of Commerce to get information to
visitors on Downtown retail/shopping opportunities.
d.Continue collaboration efforts with the Chamber of Commerce and other business and
visitor groups to increase effectiveness of local and regional marketing.
e.Get word out to Downtown retailers and restaurants when conferences/events are in
town and encourage them to do direct marketing/outreach as provided to the SLODA
via the City’s tourism efforts.
4.Organizational Capacity
Keep the City apprised of and included in the process of any update to the SLODA’s long
term strategy for the fiscal sustainability, including strategies to:
a.Maintain economic vitality and independence of the organization
b.Identify options for development of other funding sources to be considered, pursued,
and/or secured to supplement the organization’s activities;
c.Evaluate internal organization, and committee structure, and allocation of resources to
identify changes needed to most effectively implement SLODA’s mission and goals.
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EXHIBIT B
ELECTRICITY AND TREE LIGHTING
Electrical Wiring in Higuera Street for Future Electrical Connections
In 2008 and 2012 the City facilitated the installation of electrical conduit and service
connections in Higuera Street to provide electrical connections for use by Thursday Night
Promotions vendors. A further capital project will be required to facilitate additional
connections. The City and SLODA have agreed to work toward accomplishing the
connections over the term of the Agreement. However, the parties recognize that the
completion of such a project will require additional funding and the parties agree that the
cost allocation relating to the provision of such connections and post-installation
maintenance issues, such as electrical service costs, are subject to further negotiation.
Tree Lighting Program
On January 24, 2012, in return for the City’s issuance of a temporary revocable
encroachment permit, SLODA executed an agreement for encroachment within the public
right-of-way for the SLODA Tree Lighting and Power Project. Furthermore, on June 14,
2012, the City and SLODA amended their contract for services dated July 1, 2011, under
which the SLODA was allowed to conduct a Tree Lighting and Power Project consisting
of installation of string lights in trees, installation of electrical boxes to provide the lights
with electricity per City standards, and installation a commemorative plaque to
acknowledge tree lighting donors.
The Tree Lighting and Power Project shall meet the following requirements:
1.The Tree Lighting and Power Project will be allowed on street trees along Higuera
Street between Morro and Garden Streets (the “Project Area”) All areas outside the
Project Area are reserved for the City’s commemorative tree program as established
per Resolution No. 10151 (2010 Series) until such time as the commemorative tree
program is eliminated or the Project Area modified.
2.Trees in the Project Area that have commemorative plaques granted prior to June
14, 2012, in accordance with the City’s planting and commemorative plaque
program, are excluded from the Tree Lighting and Power Project unless written
approval of the commemorative donor to allow inclusion in the Tree Lighting and
Power Program has been obtained by the SLODA.
3.The SLODA may charge a fee to cover the costs of installing, maintaining,
operating (including electricity) and replacing the lighting and plaques otherwise
administering the Tree Lighting Project.
4.SLODA will be entirely responsible for all costs associated with the Tree Lighting
and Power Project and shall comply with the following conditions:
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a.install, maintain, operate, replace, and remove tree lighting in the Program
Area upon revocation of the encroachment permit issued for the Tree
Lighting and Power Project (unless otherwise agreed in writing by City);
b.purchase, place, maintain, and remove all plaques associated with its
Program upon revocation of the encroachment permit issued for the Tree
Lighting and Power Project (unless otherwise agreed in writing by City);
c.remove any damaged or hazardous plaques when needed or upon request
by the City; and
d.provide lighting of the existing commemorative trees in the Program Area.
e.Plaques shall be no larger than 5” x 6” and shall have wording appropriate
to a public location.
f.All tree lighting shall be placed in accordance with guidance of the City
Arborist to minimize impacts to pruning and other maintenance operations.
g.Any expansion of the Program Area requires the prior written approval of
City before implementation by SLODA.
City will use reasonable caution when completing work in the vicinity of SLODA facilities,
but is not responsible for any damage to SLODA facilities resulting from maintenance
activities or tree pruning. SLODA shall repair any such inadvertent damage to its tree
lighting or plaques or other facilities.
In the event the City must remove any plaque to complete work, the City will return the
plaque to SLODA. SLODA shall reinstall the plaque at SLODA’s expense.
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Exhibit C
INSURANCE REQUIREMENTS: Operation & Maintenance Contracts
The Contractor shall procure and maintain for the duration of the contract insurance against claims for
injuries to persons or damages to property that may arise from or in connection with the performance of the
work hereunder by the Contractor, its agents, representatives, employees or subcontractors.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1.Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2.Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code
1 (any auto).
3.Workers’ Compensation insurance as required by the State of California and Employer’s Liability
Insurance.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
1.General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
2.Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3.Employer’s Liability: $1,000,000 per accident for bodily injury or disease.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to
and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers;
or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions:
1.The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: liability arising out of activities performed by or on behalf of the Contractor; products
and completed operations of the Contractor; premises owned, occupied or used by the Contractor;
or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no
special limitations on the scope of protection afforded to the City, its officers, officials, employees,
agents or volunteers.
2.For any claims related to this project, the Contractor’s insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees, agents and volunteers. Any
insurance or self-insurance maintained by the City, its officers, officials, employees, agents or
volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.
3.The Contractor’s insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer’s liability.
4.Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30)
days’ prior written notice by certified mail, return receipt requested, has been given to the City.
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Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating of no
less than A:VII.
Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing
required coverage. Original endorsements effecting general liability and automobile liability coverage are
also required by this clause. The endorsements are to be signed by a person authorized by that insurer to
bind coverage on its behalf. All endorsements are to be received and approved by the City before work
commences.
Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish
separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be
subject to all of the requirements stated herein.
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ECONOMIC DEVELOPMENT SERVICES AGREEMENT
THIS ECONOMIC DEVELOPMENT SERVICES AGREEMENT (“Agreement”) is made and entered into
on by and between the CITY OF SAN LUIS OBISPO, a municipal corporation and
charter city, hereinafter referred to as “City”, and the ECONOMIC VITALITY CORPORATION (EVC) of San Luis
Obispo County, a California non-profit corporation hereinafter referred to as “Contractor” or “EVC”.
W I T N E S S E T H:
WHEREAS, the City has recently amended its Economic Development Strategic Plan (“EDSP”) which seeks to
advance the economic vitality of the City and encourage job creation, with a concentrated focus on head-of-household
jobs, support for infrastructure development, public-private and public-public partnerships, and business retention and
expansion;
WHEREAS, the mission of the EVC is “to stimulate the economic vitality of San Luis Obispo County, generate jobs
and increase financial investment within the County by promoting the retention, expansion, and attraction of business
and industry to the area;”
WHEREAS, sections 2.1 and 4.2 of the EDSP encourage the City to work with the EVC to promote economic
development.
NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the
parties hereto agree as follows:
1. TERM. The term of this Agreement is the period beginning July 1, 2017 and ending June 30, 2019, unless
sooner terminated as hereinafter provided.
2. COMPENSATION AND BILLING. For providing economic development services as specified in this
Agreement, City will pay to Contractor compensation in the amount of $25,000.00 which shall be paid to Contractor in
biannual installments (December/July) of $6,250.00 within 30 days of City’s receipt of an invoice and City’s approval
of the report specified in Section 3, subparagraph “B”, herein.
3. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements herein
before mentioned to be made and performed by City, Contractor agrees as follows:
A. Contractor shall carry on regional economic development activities as follows:
1. Work with the City to provide support and assistance to prospects considering relocation of a
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business or industry to the City when appropriate to potential new businesses.
2. Continue to help organize and guide County-wide Economic Development efforts.
3. Maintain open communications with the City about the work within the Clusters of Opportunity.
4. Communicate issues of concern about San Luis Obispo-based businesses to the City to facilitate
City response.
5. Continue involvement in business retention, expansion and attraction efforts including, but not
limited to the outreach effort of the business assistance team.
6. Continue to help businesses find access to capital through its network.
7. Otherwise promote the policies and programs set forth in the City’s EDSP.
B. EVC shall furnish to City biannual reports of its activities on behalf of the City. Said reports shall
provide a summary of the activities from the preceding six months and may be made a part of the invoice for the
amount due for the preceding six month period.
.
4. TERMINATION OF AGREEMENT FOR CONVENIENCE OF EITHER PARTY. Either party may
terminate this Agreement at any time by giving to the other party 30 days prior written notice of such termination.
Termination shall have no effect upon the rights and obligations of the parties arising out of any transaction occurring
prior to the effective date of such termination.
5. TERMINATION FOR CAUSE. If Contractor fails to perform its duties to the satisfaction of the City or if
Contractor fails to fulfill in a timely and professional manner Contractor’s obligations under this Agreement or if
Contractor shall violate any of the terms or provisions of this Agreement, then City shall have the right to terminate this
Agreement effective immediately upon City giving written notice thereof to Contractor.
6. INDEMNIFICATION. To the fullest extent permitted by law, Contractor agrees to defend, indemnify,
protect and hold City and its agents, officers, and employees harmless from and against any and all claims asserted or
liability established for damages or injuries to any person or property, including injury to Contractor’s employees,
agents, or officers which arise from or are connected with or are caused or claimed to be caused by the acts or
omissions of Contractor, and its agents, officers, or employees, in performing the work or services herein, and all
expenses of investigating and defending against same; provided, however, that Contractor’s duty to indemnify and hold
harmless shall not include any claims or liability arising from the proven sole negligence or willful misconduct of the
City, its agents, officers, or employees.
7. INSURANCE: The Contractor shall procure and maintain for the duration of the contract insurance that
meets the requirement of Exhibit A. As evidence of this insurance, the Contractor shall provide the City with a
Certificate of Insurance and an Endorsement naming the City as “Additional Insured”.
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8. AMENDMENTS: Any amendment, modification, or variation from the terms of this Agreement shall be in
writing and shall be effective only upon approval by the City of San Luis Obispo Council or the City Manager.
9. COMPLETE AGREEMENT: This written Agreement shall constitute the complete agreement between the
parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated
herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding
upon the parties hereto.
10. EMPLOYMENT STATUS. Nothing in this Agreement is intended not shall be construed to create an
employer-employee relationship between the City and Contractor. Neither Contractor nor any of Contractor’s agents,
employees or contractors are or shall be considered to be agents or employees of the City in connection with the
performance of Contractor’s obligations under this Agreement.
11. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by
registered or certified mail addressed as follows:
City: City Clerk Contractor: Michael Manchak, President and CEO
City of San Luis Obispo Economic Vitality Corp. of San Luis Obispo County
990 Palm Street 735 Tank Farm Road, Suite
San Luis Obispo, CA 93401 San Luis Obispo, CA 93401
12. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual
executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for
such party.
13. COMPLIANCE WITH LAWS AND REGULATIONS. Contractor agrees that is it familiar with and will
comply with all local, State and Federal laws and regulations that pertain to Contractor’s performance under this
Agreement.
14. NON-ASSIGNMENT OF AGREEMENT. Inasmuch as this Agreement is intended to secure the
specialized services of Contractor, Contractor shall not have the right to assign or transfer this Agreement, or any part
hereof, without the prior written consent of City, and any such assignment or transfer without the City’s prior written
consent shall be considered null and void.
15. EFFECT OF WAIVER. City’s waiver of a breach of any one term, covenant or other provision of this
Agreement shall not be a waiver of a subsequent breach of the same term, covenant or provision of this Agreement or
of the breach of any other term, covenant or provision of this Agreement.
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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year
first above written.
CITY OF SAN LUIS OBISPO, CONTRACTOR:
A Municipal Corporation
By: By:
City Manager, Katie Lichtig Its: President and Chief Operating Officer,
Michael E. Manchak
APPROVED AS TO FORM:
City Attorney, Christine Dietrick
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EXHIBIT A
INSURANCE REQUIREMENTS: Consultant Services
The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of the work hereunder by
the Contractor, its agents, representatives, employees, or subcontractors.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If
Commercial General Liability or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general aggregate limit shall be equal to
the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and
approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-
insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a
bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to
contain, the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects:
liability arising out of activities performed by or on behalf of the Contractor; products and completed
operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned,
leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of
protection afforded to the City, its officers, official, employees, agents or volunteers.
2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as
respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance
maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the
Contractor's insurance and shall not contribute with it.
3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall
not affect coverage provided to the City, its officers, officials, employees, agents or volunteers.
4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is
brought, except with respect to the limits of the insurer's liability.
5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended,
voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written
notice by certified mail, return receipt requested, has been given to the City.
6. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any
case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of
Section 2782 of the Civil Code.
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Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than
A:VII or as accepted by the City of San Luis Obispo Risk Manager.
Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the
required insurance coverage. Original endorsements effecting general liability and automobile liability coverage
required by this clause must also be provided. The endorsements are to be signed by a person authorized by that
insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work
commences and approval of the endorsements by the City shall be conclusive proof that Contractor has complied with
applicable insurance requirements.
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