HomeMy WebLinkAbout08/19/1997, C-10 - ECONOMIC VITALITY CORPORATION OF SAN LUIS OBISPO COUNTY CONTRACT FOR SERVICES AGREEMENT council
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CITY OF SAN LUIS OBISPO
FROM: Ken Hampian,Assistant City Administrative Officer WI b`�4�
Prepared By: Diane Sheeley,Economic Development Manager
SUBJECT: ECONOMIC VITALITY CORPORATION OF SAN LUIS
OBISPO COUNTY CONTRACT FOR SERVICES AGREEMENT
CAO RECOMMENDATION
Approve contract with the Economic Vitality Corporation (EVC) of San Luis Obispo County in
the amount of$6200 for economic development services and authorize the Mayor to execute the
contrar.....
DISCUSSION
Overview
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." The three(3)primary missions include:
1. Business retention and expansion
2. Business recruitment
3. Planning and technical assistance to the units of local government
Specifically, the EVC's goal is to create an additional 1,000 jobs over the next three (3) years
countywide.
Background
At the January 21, 1997, Council meeting the Economic Vitality Corporation (EVC) of San Luis
Obispo County asked Council to consider an annual contract for economic development services
that would serve as sponsorship/financial support for the EVC. The cities of San Luis Obispo
County are being asked to annually invest a total of$105,000, with an additional $100,000 raised
from the private sector. In addition, it was proposed that the City of San Luis Obispo consider an
annual contract for operational services to the EVC in the amount of$25,000 per year, based upon
rough parity in population and overall fiscal ability of the unit of local government. Council
referred the request for annual sponsorship ($25,000) to staff for a follow-up report and
recommendation as part of the development of the 1997-99 Financial Plan and Budget.
Council Agenda Report VC Contract
Page 2
During the budget process, the EVC requested $25,000 for operating expenses. Based on the
percentage of population in the incorporated cities, with the County paying a percentage based on
population in the unincorporated areas, the City's share would actually be about $18,600. Since
the City already has its own economic development program and recognizing the "start-up" status
of the EVC,the staff recommended that the City's"proportionate share"of$18,600 be funded over
a three-year period, starting at$6,200 in 1997-98 and increasing to $12,400 in 1998-99, contingent
upon Council consideration of the benefits of the EVC prior to executing future agreements. This
recommendation was approved as part of the 1997-99 Financial Plan.
Contract for services
The EVC provides different services to different cities depending on their need. Specifically, the
City's contract includes providing appropriate business marketing and business expansion activities
and acting as liaison with appropriate local, regional, state, and federal agencies and private parties.
The EVC will actively participate in the Central Coast Marketing Group, including sharing leads
with the City, thus allowing the City to be represented without having to pay additional
membtiship dues to the Group.
The EVC will assist in providing research, analysis, and recommendations to the City upon request.
Other services include the development and management of coordinated, competitive programs of
business incentives to expand,retain, and attract desirable firms, including incubators, and business
parks to accommodate space needs. Technical assistance is also provided for in the contract for
services.
FISCAL EWFACT
$6,200 was appropriated for the 1997-98 EVC agreement in the 1997-99 Financial Plan on page D-
120.
Attachment
Agreement
glsheeley/council agenda mport/co=ciLsta&pt
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AGREEMENT
THIS AGREEb>ENT is made and entered into in the City of San Luis Obispo on this da of
1997,by and between the CTIy OF SAN LUIS OBISPO,a municipalY
as City,and the Economic Vitalicorporation,hereinafter referred to
Vitality Corporation(EVC)of San Luis Obispo County,a non-profit corporation,hereinafter
referred to as Contractor.
WITNESSETH:
WHEREAS, the incorporated cities of San Luis Obispo County have agreed to participate and support the
establishment of a regional economic development effort;and
WHEREAS, the City of San Luis Obispo desires to diversify and expand its industrial, retail, commercial,
recreational,and general business services economic base;and
WHEREAS, the Economic Vitality Corporation (EVC) of San Luis Obispo County is charged with the
mission"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";and
WHEREAS,the EVC is organized for such economic development activities on behalf of the City and is in a
Position to accomplish such goals and purposes of the City in an efficient and economical manner;and
WHEREAS,the Government Code of the State of California authorizes the expenditure of public funds by a
municipal corporation for economic development activities as therein provided.
NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter
contained,the parties hereto agree as follows:
I• TERM. The team of this Agreement shall become effective on the date of execution hereof by both
Parties,and shall continue in effect until June 30, 1998,provided,however,that this Agreement shall be renewed each
Year hereafter, for periods of one year, commencing July 1 through June 30 of the succeeding year, by action of the
City Council and EVC's acceptance of said renewal.
2. CITY'S OBLIGATIONS. For providing economic development services as specified in this
Agreement,City will Pay and Contractor shall receive therefor compensation in a total sur'not to exceed$6,200. The
amount shall be allocated as follows: The full amount shall be paid in July (or immediately after the City Council
approves the Agreement,whichever is later).
3. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements
herein b'fore mentioned.to be made and performed by City, Contractor agrees with City to do everything required by
this Agreement and the said specifications:
A. That the foregoing recitals are true and correct and constitute statements of fact herein.
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B. EVC shall carry on regional economic development activities as follows:
1. Employ competent personnel to carry on regional economic development activities
herein enumerated.
2• To assist in the development of job employment,training and business
opportunities for residents of the City of San Luis Obispo,especially for targeted low and moderate
income residents through the retention and expansion of private sector firms.
3• To assist in the planning and management of economic development
implementation activities,programs and projects which would attract the expansion and creation of
new firms,and retain and expand existing businesses,including but not limited to those owned by
targeted low and moderate income residents of the City of San Luis Obispo.
4. To assist in the establishment and support of forums and other mechanisms for
maximum feasible participation.
5. To assist in the preparation and submittal of applications on behalf of the City of
San Luis Obispo and/or participating agencies to public and private funding sources for financing
and/or to state and federal agencies for special designations in support of economic,business and
employment development activities.
6. To assist in providing research,analysis and recommendations to the City of San
Luis Obispo and private organizations on economic development.
7. To provide appropriate countywide business marketing and business expansion
activities and to liaison with appropriate local,regional,state and federal agencies and private parties,
including actively participating in the Central Coast Marketing Group.
8. To assist in the development and management of coordinated,competitive
Program of business incentives to expand,retain and attract desirable firms,including incubators,
business parks to accommodate space needs,loan funds to provide financing,employee recruitment
and training,technical and management assistance.
C. EVC shall fumish quarterly reports of its activities to City, which shall consist of the
activities scheduled for the next three (3) succeeding months and a review of the activities accomplished
during the proceeding three(3)months. Said reports shall include a detailed breakdown of all activities and
expenses.
D. The amount of the contract shall be$6,200 paid annually and approved by the City Council.
E. This agreement may be amended or modified only by written agreement signed by both
parties. Failure on the part of either party to enforce any provision of this Agreement shall not be construed as
a waiver of the right to compel enforcement of such provision or provisions in the fume.
F. It is understood that the contractual relationship of EVC to City is that of independent
contractor.
4. INDEMNMCATION. The 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
arse 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 established sole negligence or willful misconduct of the City,its agents,officers,
or employees.
5. INSURANCE, The Contractor shall procure and maintain for the duration of the contract insurance
which meets the requirement of Attachment 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".
6. 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 Council or the City Administrative Officer of the
City.
7. COMPLETE AGREEMENT. This written Agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral
agreemclt,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.
8. 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
City of San Luis Obispo
990 Palm Street
San Luis Obispo,CA 93401
Contractor Gregg Goodwin,CEO
Economic Vitality Corp.of San Luis Obispo County
412 Higuera-Suite B
San Luis Obispo,CA 93401
9. 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.
IN WITNESS WHEREOF,the parties hereto have caused this instrument to be executed the day and year first
above k=itten.
ASST' CITY OF SAN LUIS OBISPO,
A Municipal Corporation
Ctty Clerk By:
Mayor
APPROVED AS TO FORM: CONTRACTOR /
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By: �r c
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ATTACHMENT 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 ase 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 Catifomia and Employers Liability Insurance.
4. Errors and Omissions Liability insurance as appropriate to the consultants profession.
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 project4ocation 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 Uabifity: $1,000,000 per accident for bodily injury or disease.
4. Errors and Omissions Liability. $1,000,000 per occurrence.
Deductibles and Seff-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 Contractors 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.
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 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.
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