HomeMy WebLinkAboutItem No. 11 - Urban Futures, Inc.City Council Agenda Report
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 22-249
Agenda Date: 6/28/2022 Status: Approval FinalVersion: 1
File Type: Council Consent
Calendar
In Control: City Council / Successor Agency
Agenda Number: 11)
Professional Services Agreement with Urban Futures, Inc. (UFI) to Provide Economic
Development Services
Approve and authorize the City Manager to execute the Professional Services Agreement with Urban
Futures, Inc. to provide economic development implementation and management services to the City of
Lake Elsinore through FY 2023-2024 in substantially the form attached and in such final form as
approved by the City Attorney .
Page 1 City of Lake Elsinore Printed on 6/23/2022
REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Jason Simpson, City Manager
Date: June 28, 2022
Subject: Professional Services Agreement with Urban Futures, Inc. (UFI) to Provide
Economic Development Services
Recommendation
Approve and authorize the City Manager to execute the Professional Services Agreement with
Urban Futures, Inc. to provide economic development implementation and management services
to the City of Lake Elsinore through FY 2023-2024 in substantially the form attached and in such
final form as approved by the City Attorney.
Background
On October 1, 2014, the City entered into an Agreement with Urban Futures, Inc., to provide
financial advisory and consulting services. Due to recent changes in economic development
services, UFI has assembled a team of finance, economic development, and former
redevelopment specialists to move forward with a robust economic development strategy. The
Team offers a remarkable breadth of experience and expertise to provide professional economic
development services. The City’s residential development has continued briskly, exceeding 400-
500 units per year. The City’s pursuit of development opportunities fits within a phase often used
in economic development circles called “rooftops to retail.” We expect additional options to open
up as the City continues to develop and draws on the expertise of the new Team.
Discussion
Strategically, the next development phase of the City's aggressive capital improvement planning
is a funding plan for circulation and pavement rehabilitation projects. We believe preparation leads
to opportunity, and as we continue forward-thinking, opportunities for retail, commercial and site-
specific industrial development will come to fruition. Currently, the City has 1,299 housing units in
active development and construction efforts, with another approximately 20,000 residential units
entitled. Combine this with the significant investments in our infrastructure at I -15/Railroad
Canyon Road Interchange, Main Street Interchange, and as we plan to bid on I-15/Central Avenue
Interchange improvements, it provides an opportunity for a private development to invest in these
vital corridor areas. As such, transition and a change in the approach to our economic
development efforts are essential and need to be measured and monitored continuously.
Urban Futures, Inc.
June 28, 2022
Page 2 of 3
As such, the plan is to bring a team of experts (an efficient economic development "think tank"
for the City) to focus on the specific needs of the community for the development of strategically
significant vacant land as well as the reuse of vacant or underutilized buildings and properties
throughout the City. In addition, economic development is more than building places for people
to spend money; it includes taking the Lake Elsinore Dream Extreme 2040 Plan and developing
and directing resources and efforts to bring in events, water parks, wave parks, and other
outdoor venues to not only attract people, but increase foot traffic, and bolster tour ism but also
attract investors.
With UFI’s expertise, we are confident they can engage the resources above in areas of expertise
within the existing budget allocation. In doing so, the City will bring more economic development
and strategic planning horsepower. In addition, UFI will continue addressing the following matters:
1. Transition existing City project efforts in the existing pipeline.
2. Take a "team" approach with City staff.
3. Create a robust economic development program that incorporates the Dream Extreme
2040 Plan.
4. Focus on areas other than brick and mortar development that increases tourism.
5. Private development financing opportunities.
6. Coordination with City staff leading to the implementation of the City’s Economic
Development Strategic Plan.
7. As requested, participation in Economic Development Sub-Committee meetings and
presentations.
8. Participation and recruitment for the planned Brokers Breakfast with the Mayor.
9. Assist with the design and Updating of the City's ED page.
10. Add Economic Development Data, Studies, and available sites for development.
11. Review the City’s 5-year CIP projects to evaluate prioritization to foster economic
development and reinvestment.
12. Develop a Business Growth and Retention Plan to hedge against the possibility of a
significant recession. This may take the form of a “Shop Local” program reaching out to
the individuals of the City's top tax producers for a "One-on-one "Lunch with the Mayor"
and CM.
13. Serving as a sub-consultant through UFI, Kallenberger Jones & Co. will prepare a study
of the potential market support for hotel development.
14. Serving as a sub-consultant through UFI, 3-D advisors will provide project ombudsman
services for highly desired projects.
15. Prepare development and retail leads (generated at ICSC and other Economic
Development venues).
16. Work with City staff, the Economic Development Resource Team, and the Lake Elsinore
Chamber of Commerce to provide appropriate professional support to assist them with
franchise recruitment.
17. Direct and manage HdL to provide demographic research for the City of Lake Elsinore
and the surrounding market area.
Urban Futures, Inc.
June 28, 2022
Page 3 of 3
18. Direct and manage Tierra West to provide retail market opportunity analysis for the City
of Lake Elsinore and the surrounding market area.
19. Customized research for growth opportunities for the City of Lake Elsinore targets location,
expansion, and/or relocation.
20. Presentations to business prospects (retail, commercial and industrial) in support of efforts
to attract additional investment into the community.
21. Direct and Manage RSG to prepare economic, employment, and/or fiscal impact analysis
of proposed development projects to provide information to the residents properly,
businesses, council members, and staff within the City of Lake Elsinore.
22. Preparation for and representation of the City of Lake Elsinore at the International Council
of Shopping Centers (ICSC) Las Vegas International and other requested venues.
The proposed Agreement has a two (2) year term. City staff and UFI concur that a long-
term commitment is needed to continue fostering a pipeline of projects.
Fiscal Impact
The two-year proposed Agreement is based on a fixed fee of $20,000 for the Hotel Study and a
monthly retainer based on 30 hours a month at $250 per hour, plus cannabis-related services
billed at the hourly rate of $250 for a total annual contract amount not to exceed $140,000.
Applications reviews funded by applicant deposits will are billed at a fixed fee of $10,000 for the
duration of the Agreement (Fiscal Years 2022-23 to 2023-24).
Both parties shall agree to additional value-added services that are beyond the scope of work via
a written amendment to the contract with a specific scope of work at $250 per hour. These
services may include general plan amendments, entitlement audits, zone changes, site plan
development, and crafting/revising specific plans.
Exhibits
A – Agreement
B – Proposal
@BCL@A816BC04 Page 1
AGREEMENT FOR PROFESSIONAL SERVICES
Urban Futures, Inc.
Economic Development Management Services
This Agreement for Professional Services (the “Agreement”) is made and entered into as
of June 28, 2022, by and between the City of Lake Elsinore, a municipal corporation (‘‘City") and
Urban Futures, Inc., a Corporation ("Consultant").
RECITALS
A. The City has determined that it requires the following professional services:
Economic Development Management Services
B. Consultant has submitted to City a proposal, dated March 10, 2022, attached
hereto as Exhibit A (“Consultant’s Proposal”) and incorporated herein, to provide professional
services to City pursuant to the terms of this Agreement.
C. Consultant possesses the skill, experience, ability, background, certification and
knowledge to perform the services described in this Agreement on the terms and conditions
described herein.
D. City desires to retain Consultant to perform the services as provided herein and
Consultant desires to provide such professional services as set forth in this Agreement.
AGREEMENT
1. Scope of Services. Consultant shall perform the services described in
Consultant’s Proposal (Exhibit A). Consultant shall provide such services at the time, place, and
in the manner specified in Consultant’s Proposal, subject to the direction of the City through its
staff that it may provide from time to time.
2. Time of Performance.
a. Time of Essence. Time is of the essence in the performance of this
Agreement. The time for completion of the professional services to be performed by Consultant
is an essential condition of this Agreement. Consultant shall prosecute regularly and diligently
the professional services contemplated pursuant to this Agreement according to the agreed upon
performance schedule in Consultant’s Proposal (Exhibit A).
b. Performance Schedule. Consultant shall commence the services pursuant
to this Agreement upon receipt of a written notice to proceed and shall perform all services within
the time period(s) established in the Consultant’s Proposal (Exhibit A). When requested by
Consultant, extensions to the time period(s) specified may be approved in writing by the City
Manager.
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c. Term. The term of this Agreement shall commence upon execution of this
Agreement and shall continue until the services and related work are completed in accordance
with the Consultant’s Proposal (Exhibit A).
3. Compensation. Compensation to be paid to Consultant shall be in accordance
with the fees set forth in Consultants’ Proposal (Exhibit A), which is attached hereto and
incorporated herein by reference. In no event shall Consultant’s compensation exceed Forty
Thousand dollars ($40,000.00) without additional written authorization from the City.
Notwithstanding any provision of Consultant’s Proposal to the contrary, out of pocket expenses
set forth in Exhibit A shall be reimbursed at cost without an inflator or administrative charge.
Payment by City under this Agreement shall not be deemed a waiver of defects, even if such
defects were known to the City at the time of payment.
4. Method of Payment. Consultant shall promptly submit billings to the City
describing the services and related work performed during the preceding month to the extent that
such services and related work were performed. Consultant’s bills shall be segregated by project
task, if applicable, such that the City receives a separate accounting for work done on each
individual task for which Consultant provides services. Consultant’s bills shall include a brief
description of the services performed, the date the services were performed, the number of hours
spent and by whom, and a description of any reimbursable expenditures. City shall pay
Consultant no later than forty-five (45) days after receipt of the monthly invoice by City staff.
5. Background Checks. At any time during the term of this Agreement, the City
reserves the right to make an independent investigation into the background of Consultant’s
personnel who perform work required by this Agreement, including but not limited to their
references, character, address history, past employment, education, social security number
validation, and criminal or police records, for the purpose of confirming that such personnel are
lawfully employed, qualified to provide the subject service or pose a risk to the safety of persons
or property in and around the vicinity of where the services will be rendered or City Hall. If the City
makes a reasonable determination that any of Consultant’s prospective or then current personnel
is deemed objectionable, then the City may notify Consultant of the same. Consultant shall not
use that personnel to perform work required by this Agreement, and if necessary, shall replace
him or her with a suitable worker.
6. Suspension or Termination.
a. The City may at any time, for any reason, with or without cause, suspend
or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten
(10) days prior written notice. Upon receipt of such notice, the Consultant shall immediately cease
all work under this Agreement, unless the notice provides otherwise. If the City suspends or
terminates a portion of this Agreement such suspension or termination shall not make void or
invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City
shall pay to Consultant the actual value of the work performed up to the time of termination,
provided that the work performed is of value to the City. Upon termination of the Agreement
pursuant to this Section, the Consultant will submit an invoice to the City, pursuant to Section
entitled “Method of Payment” herein.
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7. Plans, Studies, Documents.
a. Ownership of Documents. All plans, studies, documents and other writings
prepared by and for Consultant, its officers, employees and agents and subcontractors in the
course of implementing this Agreement, except working notepad internal documents, shall
become the property of the City upon payment to Consultant for such work, and the City shall
have the sole right to use such materials in its discretion without further compensation to
Consultant or to any other party. Consultant shall, at Consultant’s expense, provide such reports,
plans, studies, documents and other writings to City upon written request. City shall have sole
determination of the public’s rights to documents under the Public Records Act, and any third-
party requests of Consultant shall be immediately referred to City, without any other actions by
Consultant.
b. Licensing of Intellectual Property. This Agreement creates a nonexclusive
and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights,
designs, and other intellectual property embodied in plans, specifications, studies, drawings,
estimates, and other documents or works of authorship fixed in any tangible medium of
expression, including but not limited to, physical drawings or data magnetically or otherwise
recorded on computer diskettes, which are prepared or caused to be prepared by Consultant
under this Agreement ("Documents & Data"). Consultant shall require that all subcontractors
agree in writing that City is granted a nonexclusive and perpetual license for any Documents &
Data the subcontractor prepares under this Agreement. Consultant represents and warrants that
Consultant has the legal right to license any and all Documents & Data. Consultant makes no
such representation and warranty in regard to Documents & Data which were prepared by design
professionals other than Consultant or provided to Consultant by the City. City shall not be limited
in any way in its use of the Documents & Data at any time, provided that any such use not within
the purposes intended by this Agreement shall be at City’s sole risk.
c. Confidentiality. All ideas, memoranda, specifications, plans, procedures,
drawings, descriptions, computer program data, input record data, written information, and other
Documents & Data either created by or provided to Consultant in connection with the performance
of this Agreement shall be held confidential by Consultant. Such materials shall not, without the
prior written consent of City, be used by Consultant for any purposes other than the performance
of the services under this Agreement. Nor shall such materials be disclosed to any person or
entity not connected with the performance of the services under this Agreement. Nothing
furnished to Consultant which is otherwise known to Consultant or is generally known, or has
become known, to the related industry shall be deemed confidential. Consultant shall not use
City’s name or insignia, photographs relating to project for which Consultant ’s services are
rendered, or any publicity pertaining to the Consultant’s services under this Agreement in any
magazine, trade paper, newspaper, television or radio production or other similar medium without
the prior written consent of City.
8. Consultant’s Books and Records.
a. Consultant shall maintain any and all ledgers, books of account, invoices,
vouchers, canceled checks, and other records or documents evidencing or relating to charges for
services, or expenditures and disbursements charged to City for a minimum period of three (3)
years, or for any longer period required by law, from the date of final payment to Consultant to
this Agreement.
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b. Consultant shall maintain all documents and records which demonstrate
performance under this Agreement for a minimum period of three (3) years, or for any longer
period required by law, from the date of termination or completion of this Agreement.
c. Any records or documents required to be maintained pursuant to this
Agreement shall be made available for inspection or audit, at any time during regular business
hours, upon written request by the City Manager, City Attorney, City Auditor or a designated
representative of these officers. Copies of such documents shall be provided to the City for
inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually
agreed upon, the records shall be available at Consultant’s address indicated for receipt of notices
in this Agreement.
d. Where City has reason to believe that such records or documents may be
lost or discarded due to dissolution, disbandment or termination of Consultant’s business, City
may, by written request by any of the above-named officers, require that custody of the records
be given to the City and that the records and documents be maintained in City Hall. Access to
such records and documents shall be granted to any party authorized by Consultant, Consultant’s
representatives, or Consultant’s successor-in-interest.
9. Independent Contractor.
a. Consultant is and shall at all times remain as to the City a wholly
independent contractor pursuant to California Labor Code Section 3353. The personnel
performing the services under this Agreement on behalf of Consultant shall at all times be under
Consultant’s exclusive direction and control. Neither City nor any of its officers, employees, or
agents shall have control over the conduct of Consultant or any of Consultant’s officers,
employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or
in any manner represent that it or any of its officers, employees, or agents are in any manner
officers, employees, or agents of the City. Consultant shall not incur or have the power to incur
any debt, obligation, or liability whatsoever against City, or bind City in any manner.
b. Notwithstanding any other federal, state and local laws, codes, ordinances
and regulations to the contrary and except for the fees paid to Consultant as provided in the
Agreement, Consultant and any of its employees, agents, and subcontractors providing service
under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any
claims to, any compensation, benefit, or any incident of employment by City, including but not
limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution
to be paid by City for employer contribution and/or employee contributions for PERS benefits.
10. PERS Eligibility Indemnification. In the event that Consultant or any employee,
agent, or subcontractor of Consultant providing services under this Agreement claims or is
determined by a court of competent jurisdiction or the California Public Employees Retirement
System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall
indemnify, defend, and hold harmless City for the payment of any employee and/or employer
contributions for PERS benefits on behalf of Consultant or its employees, agents, or
subcontractors, as well as for the payment of any penalties and interest on such contributions,
which would otherwise be the responsibility of City.
11. Interests of Consultant. Consultant (including principals, associates and
professional employees) covenants and represents that it does not now have any investment or
interest in real property and shall not acquire any interest, direct or indirect, in the area covered
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by this Agreement or any other source of income, interest in real property or investment which
would be affected in any manner or degree by the performance of Consultant’s services
hereunder. Consultant further covenants and represents that in the performance of its duties
hereunder no person having any such interest shall perform any services under this Agreement.
Consultant is not a designated employee within the meaning of the Political Reform Act
because Consultant:
a. will conduct research and arrive at conclusions with respect to his/her
rendition of information, advice, recommendation or counsel independent of the control and
direction of the City or of any City official, other than normal agreement monitoring; and
b. possesses no authority with respect to any City decision beyond rendition
of information, advice, recommendation or counsel. (FPPC Reg. 18700(a)(2).)
12. Professional Ability of Consultant. City has relied upon the professional training
and ability of Consultant to perform the services hereunder as a material inducement to enter into
this Agreement. Consultant shall therefore provide properly skilled professional and technical
personnel to perform all services under this Agreement. All work performed by Consultant under
this Agreement shall be in accordance with applicable legal requirements and shall meet the
standard of quality ordinarily to be expected of competent professionals in Consultant’s field of
expertise.
13. Compliance with Laws.
a. Consultant shall comply with all local, state and federal laws and
regulations applicable to the services required hereunder, including any rule, regulation or bylaw
governing the conduct or performance of Consultant and/or its employees, officers, or board
members.
b. Consultant represents that it has obtained and will maintain at all times
during the term of this Agreement all professional and/or business licenses, certifications and/or
permits necessary for performing the services described in this Agreement, including a City
business license.
14. Licenses. Consultant represents and warrants to City that it has the licenses,
permits, qualifications, insurance and approvals of whatsoever nature which are legally required
of Consultant to practice its profession. Consultant represents and warrants to City that
Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term
of this Agreement, any licenses, permits, insurance and approvals which are legally required of
Consultant to practice its profession. Consultant shall maintain a City of Lake Elsinore business
license.
15. Indemnity. Consultant shall indemnify, defend, and hold harmless the City and its
officials, officers, employees, agents, and volunteers from and against any and all losses, liability,
claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily
injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law
or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts
or omissions of Consultant or its employees, subcontractors, or agents, by acts for which they
could be held strictly liable, or by the quality or character of their work. The foregoing obligation
of Consultant shall not apply when (1) the injury, loss of life, damage to property, or violation of
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law arises from the sole negligence or willful misconduct of the City or its officers, employees,
agents, or volunteers and (2) the actions of Consultant or its employees, subcontractor, or agents
have contributed in no part to the injury, loss of life, damage to property, or violation of law. It is
understood that the duty of Consultant to indemnify and hold harmless includes the duty to defend
as set forth in Section 2778 of the California Civil Code. Acceptance by City o f insurance
certificates and endorsements required under this Agreement does not relieve Consultant from
liability under this indemnification and hold harmless clause. This indemnification and hold
harmless clause shall apply to any damages or claims for damages whether or not such insurance
policies shall have been determined to apply. By execution of this Agreement, Consultant
acknowledges and agrees to the provisions of this Section and that it is a material element of
consideration.
16. Insurance Requirements.
a. Insurance. Consultant, at Consultant’s own cost and expense, shall
procure and maintain, for the duration of the contract, unless modified by the City’s Risk Manager,
the following insurance policies.
i. Workers’ Compensation Coverage. Consultant shall maintain
Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her
employees in accordance with the laws of the State of California. In addition, Consultant
shall require each subcontractor to similarly maintain Workers’ Compensation Insurance
and Employer’s Liability Insurance in accordance with the laws of the State of California
for all of the subcontractor’s employees. Any notice of cancellation or non-renewal of all
Workers’ Compensation policies must be received by the City at least thirty (30) days prior
to such change. The insurer shall agree to waive all rights of subrogation against City, its
officers, agents, employees and volunteers for losses arising from work performed by
Consultant for City. In the event that Consultant is exempt from Worker’s Compensation
Insurance and Employer’s Liability Insurance for his/her employees in accordance with
the laws of the State of California, Consultant shall submit to the City a Certificate of
Exemption from Workers Compensation Insurance in a form approved by the City
Attorney.
ii. General Liability Coverage. Consultant shall maintain commercial
general liability insurance in an amount not less than one million dollars ($1,000,000) per
occurrence for bodily injury, personal injury and property damage. If a commercial general
liability insurance form or other form with a general aggregate limit is used, either the
general aggregate limit shall apply separately to the work to be performed under this
Agreement or the general aggregate limit shall be at least twice the required occurrence
limit. Required commercial general liability coverage shall be at least as broad as
Insurance Services Office Commercial General Liability occurrence form CG 0001 (ed.
11/88) or Insurance Services Office form number GL 0002 (ed. 1/73) covering
comprehensive General Liability and Insurance Services Office form number GL 0404
covering Broad Form Comprehensive General Liability. No endorsement may be attached
limiting the coverage.
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iii. Automobile Liability Coverage. Consultant shall maintain
automobile liability insurance covering bodily injury and property damage for all activities
of the Consultant arising out of or in connection with the work to be performed under this
Agreement, including coverage for owned, hired and non-owned vehicles, in an amount
of not less than one million dollars ($1,000,000) combined single limit for each occurrence.
Automobile liability coverage must be at least as broad as Insurance Services Office
Automobile Liability form CA 0001 (ed. 12/90) Code 1 (“any auto”). No endorsement may
be attached limiting the coverage.
iv. Professional Liability Coverage. Consultant shall maintain
professional errors and omissions liability insurance appropriate for Consultant’s
profession for protection against claims alleging negligent acts, errors or omissions which
may arise from Consultant’s services under this Agreement, whether such services are
provided by the Consultant or by its employees, subcontractors, or sub consultants. The
amount of this insurance shall not be less than one million dollars ($1,000,000) on a
claims-made annual aggregate basis, or a combined single limit per occurrence basis.
b. Endorsements. Each general liability and automobile liability insurance
policy shall be with insurers possessing a Best’s rating of no less than A:VII and shall be endorsed
with the following specific language:
i. Notwithstanding any inconsistent statement in any required
insurance policies or any subsequent endorsements attached thereto, the protection
offered by all policies, except for Workers’ Compensation, shall bear an endorsement
whereby it is provided that, the City and its officers, employees, servants, volunteers and
agents and independent contractors, including without limitation, the City Manager and
City Attorney, are named as additional insureds. Additional insureds shall be entitled to
the full benefit of all insurance policies in the same manner and to the same extent as any
other insureds and there shall be no limitation to the benefits conferred upon them other
than policy limits to coverages.
ii. This policy shall be considered primary insurance as respects the
City, its elected or appointed officers, officials, employees, agents and volunteers.
Any insurance maintained by the City, including any self-insured retention the City may
have, shall be considered excess insurance only and shall not contribute with it.
iii. This insurance shall act for each insured and additional insured as
though a separate policy had been written for each, except with respect to the limits of
liability of the insuring company.
iv. The insurer waives all rights of subrogation against the City, its
elected or appointed officers, officials, employees or agents.
v. Any failure to comply with reporting provisions of the policies shall
not affect coverage provided to the City, its elected or appointed officers, officials,
employees, agents or volunteers.
vi. The insurance provided by this Policy shall not be suspended,
voided, canceled, or reduced in coverage or in limits except after thirty (30) days written
notice has been received by the City.
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c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City. At the City’s option, Consultant shall
demonstrate financial capability for payment of such deductibles or self-insured retentions.
d. Certificates of Insurance. Consultant shall provide certificates of insurance
with original endorsements to City as evidence of the insurance coverage required herein.
Certificates of such insurance shall be filed with the City on or before commencement of
performance of this Agreement. Current certification of insurance shall be kept on file with the
City at all times during the term of this Agreement.
17. Notices. Any notice required to be given under this Agreement shall be in writing
and either served personally or sent prepaid, first class mail. Any such notice shall be addressed
to the other party at the address set forth below. Notice shall be deemed communicated within
48 hours from the time of mailing if mailed as provided in this section.
If to City: City of Lake Elsinore
Attn: City Manager
130 South Main Street
Lake Elsinore, CA 92530
With a copy to: City of Lake Elsinore
Attn: City Clerk
130 South Main Street
Lake Elsinore, CA 92530
If to Consultant: Urban Futures, Inc.
Attn: Michael Busch
17821 17th Street, Suite 245
Tustin, CA 92780
18. Assignment and Subcontracting. The parties recognize that a substantial
inducement to City for entering into this Agreement is the professional reputation, experience and
competence of Consultant and the subcontractors listed in Exhibit B. Consultant shall be fully
responsible to City for all acts or omissions of any subcontractors. Assignments of any or all
rights, duties or obligations of the Consultant under this Agreement will be permitted only with the
express consent of the City. Consultant shall not subcontract any portion of the work to be
performed under this Agreement except as provided in Exhibit B without the written authorization
of the City. If City consents to such subcontract, Consultant shall be fully responsible to City for
all acts or omissions of those subcontractors. Nothing in this Agreement shall create any
contractual relationship between City and any subcontractor nor shall it create any obligation on
the part of the City to pay or to see to the payment of any monies due to any such subcontractor
other than as otherwise is required by law.
19. Waiver. Waiver of a breach or default under this Agreement shall not constitute a
continuing waiver of a subsequent breach of the same or any other provision under this
Agreement.
20. Litigation Expenses and Attorneys’ Fees. If either party to this Agreement
commences any legal action against the other party arising out of this Agreement, the prevailing
party shall be entitled to recover its reasonable litigation expenses, including court costs, expert
witness fees, discovery expenses, and attorneys’ fees.
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21. Mediation. The parties agree to make a good faith attempt to resolve any disputes
arising out of this Agreement through mediation prior to commencing litigation. The parties shall
mutually agree upon the mediator and share the costs of mediation equally. If the parties are
unable to agree upon a mediator, the dispute shall be submitted to JAMS or its successor in
interest. JAMS shall provide the parties with the names of five qualified mediators. Each party
shall have the option to strike two of the five mediators selected by JAMS and thereafter the
mediator remaining shall hear the dispute. If the dispute remains unresolved after mediation,
either party may commence litigation.
22. Prohibited Interests. Consultant maintains and warrants that it has not employed
nor retained any company or person, other than a bona fide employee working solely for
Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid
nor has it agreed to pay any company or person, other than a bona fide employee working solely
for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. For breach or violation
of this warranty, City shall have the right to rescind this Agreement without l iability. For the term
of this Agreement, no member, officer or employee of City, during the term of his or her service
with City, shall have any direct interest in this Agreement, or obtain any present or anticipated
material benefit arising therefrom.
23. Equal Opportunity Employment. Consultant represents that it is an equal
opportunity employer and it shall not discriminate against any subcontractor, employee or
applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex
or age. Such non-discrimination shall include, but not be limited to, all activities related to initial
employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or
termination.
24. Prevailing Wages. Consultant is aware of the requirements of California Labor
Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8,
Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage
rates and the performance of other requirements on "public works" and "maintenance" projects.
Consultant agrees to fully comply with all applicable federal and state labor laws (including,
without limitation, if applicable, the Prevailing Wage Laws). It is agreed by the partie s that, in
connection with the Work or Services provided pursuant to this Agreement, Consultant shall bear
all risks of payment or non-payment of prevailing wages under California law, and Consultant
hereby agrees to defend, indemnify, and hold the City, and its officials, officers, employees,
agents, and volunteers, free and harmless from any claim or liability arising out of any failure or
alleged failure to comply with the Prevailing Wage Laws. The foregoing indemnity shall survive
termination of this Agreement.
25. Severability. If any term or portion of this Agreement is held to be invalid, illegal,
or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this
Agreement shall continue in full force and effect.
26. Controlling Law Venue. This Agreement and all matters relating to it shall be
governed by the laws of the State of California and any action brought relating to this Agreement
shall be held exclusively in a state court in the County of Riverside.
27. Authority to Enter Agreement. Consultant has all requisite power and authority to
conduct its business and to execute, deliver, and perform the Agreement. Each party warrants
that the individuals who have signed this Agreement have the legal power, right, and authority to
Page 10
make this Agreement and to bind each respective party. The City Manager is authorized to enter
into an amendment or otherwise take action on behalf of the City to make the following
modifications to the Agreement: (a) a name change; (b) grant extensions of time; (c) non-
monetary changes in the scope of services; and/or (d) suspend or terminate the Agreement.
28. Counterparts. This Agreement may be executed in several counterparts, each of
which shall constitute one and the same instrument and shall become binding upon the parties
when at least one copy hereof shall have been signed by both parties hereto. In approving this
Agreement, it shall not be necessary to produce or account for more than one such counterpart.
29. Entire Agreement; Incorporation; Conflict. This Agreement contains the entire
understanding between the parties relating to the obligations described herein. All prior or
contemporaneous understandings, agreements, representations and statements, oral or written,
are superseded in total by this Agreement and shall be of no further force or effect. Consultant’s
Proposal is incorporated only for the description of the scope of services and/or the schedule of
performance and no other terms and conditions from such proposal shall apply to this Agreement
unless specifically agreed to in writing. In the event of conflict, this Agreement shall take
precedence over those contained in the Consultant’s Proposal.
30. Amendments. This Agreement may be modified or amended only by a written
document executed by both Consultant and City and approved as to form by the City Attorney.
[Signatures on next page]
Page 11
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the
date first written above.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
Assistant City Manager
“CONSULTANT”
Urban Futures, Inc., a Corporation
By: Michael Busch
Its: Chief Executive Officer
Attachments: Exhibit A – Consultant’s Proposal
Exhibit B – List of Subcontractors
EXHIBIT A
EXHIBIT A
CONSULTANT’S PROPOSAL
[ATTACHED]
EXHIBIT B
EXHIBIT B
LIST OF SUBCONTRACTORS
[ATTACHED]
`
City of Lake Elsinore
STRATEGIC ECONOMIC
DEVELOPMENT
IMPLEMENTATION &
MANAGEMENT SERVICES
June 15, 2022
Prepared by:
17821 E 17th Street, Suite 245 Tustin, CA 92780
Telephone: (714) 283-9334 http://www.urbanfuturesinc.com Fax: (714) 283-9319
June 15, 2022
Jason Simpson
City Manager
City of Lake Elsinore
130 South Main Street
Lake Elsinore, California 92530
Dear Mr. Simpson,
Thank you for the opportunity to provide this proposal to provide strategic economic development
Implementation and management services to the City of Lake Elsinore (the “City”) as part of the City’s
economic development program. The services will involve follow-up from ICSC, continued engagements
with commercial real estate brokers and developers and supporting the City’s economic development
efforts through Ombudsman Services and the evaluation of strategically important public and privately
held properties. The focus of our work will be in support of the identification of development strategies
to meet the City’s economic development goals and objectives through creative leveraging of assets and
by fostering win-win development opportunities on strategically significant real property.
It would be a pleasure to continue assisting the City with these important initiatives. UFI is uniquely
qualified to provide such services and is quite interested in doing so.
ABOUT URBAN FUTURES, INC.
UFI’s Public Land Use Specialist (PLUS) Group specializes in helping local government leaders. Over its 50-
year history, UFI has worked with municipal management and development professionals to implement
economic development projects, provided real estate pro-forma analysis and land economic services,
review resources to ensure effective property asset management, institute performance management
techniques, and perform rigorous property disposition analysis to help bring economic development goals
to fruition. Our firm and its partners are comprised of former city managers, economic development and
public finance experts, and other professionals providing expertise in specialty areas such as economic
development program creation, advanced planning, and implementation. Our team of professionals
assigned to this assignment has provided similar services to several local governments and private
developers throughout California and UFI is confident that our experience will ensure that your
organization receives a high quality and useful work product.
Our assignments demonstrate a well-established history of helping public sector organizations and we are
excited to bring our experience and first-hand knowledge of economic development through leveraging
public and private real property assets and economic development strategy implementation to the City.
UFI is distinguished by the fact that each team member engaged have actual experience in economic
development and advanced planning through public asset management and in working together as a
team. The work we do is not an academic exercise – it is grounded in the real world of customer service
and accomplishment in the public sector. UFI is unique in that regard!
City of Lake Elsinore
Economic Development Management Services
UNDERSTANDING OF THE ENGAGEMENT
Currently, the City is 35% buildout. The future development of the City will require a significant effort to
develop private and City owned real property. Furthermore, given the needs of the City to meet its Dream
Extreme 2040 Plan, the strategic development of real property necessary to meet the City’s short and
long-term economic development goals has become a priority. The City and private individuals hold
significant, and strategically important, real property valued in the 100’s of millions of dollars. Currently,
vacant City owned property is off the tax rolls, which results in zero property tax collected on those
properties. Additionally, with the current constraints in the economy and difficulty in obtaining capital
financing private properties sit idle or underutilized.
UFI is prepared to provide the highest level of services to the City to develop and facilitate economic
development strategies and supporting analysis.
This proposal is created to facilitate the development of economic development strategies leading to the
implementation and management of an Economic Development Resource Team consisting of following
firms and responsibilities:
Tierra West Advisors (ICSC and Implementation Services)
RSG (Fiscal Impact Analysis)
HdL Econ Solutions (Demographics, Analysis, Impact Reports)
Together, UFI and the Economic Development Resource Team will provide the City with a cost-effective
economic development strategy with the necessary economic development horsepower to execute
Dream Extreme 2040 Plan Vision “Lake Elsinore will be the ultimate lake destination where all can live,
work, and play, build futures and fulfill dreams” through the following objectives:
Real property development analysis and strategic planning with the flexibility to implement the
City’s short and long-term economic development goals
To prepare a strategy for the development of strategically important real property assets,
publically and privately owned, consistent with the City’s current economic development
objectives
To facilitate opportunities with local real estate brokers and success-oriented developers for the
sale and development of property assets, while providing independent real estate advisory
services to the City necessary to maintain the highest value of the property
To provide the City with high level independent advisory services as expected by the City Council
Leverage HUBZone Empowerment Contracting Program, Foreign Trade Zones, and potentially
Enhanced Infrastructure Financing Districts Opportunities
Implementation of residential and cannabis industry development into the City overall economic
development plans and
OUR APPROACH
For each client, UFI customizes the methodology needed to meet and exceeds the expectation of its
clients. In our view, a one size approach will not deliver the Dream Extreme 2040 Plan. Therefore, for the
City of Lake Elsinore
Economic Development Management Services
City of Lake Elsinore, we propose an approach that comprises four discrete, but interactive phases as
described below:
Learning. The success of an economic development program is often a result of a well throughout process
requiring a significant amount of preparation. It has long been the UFI motto, “preparation leads to
opportunity”. Our work plan below includes a balanced approach of preparation, study, and
implementation. Our objectives and performance must be measurable to determine success. Through a
continued review of data, written documentation and direction of City Council and the Economic
Development Sub-Committee, UFI will develop a clear understanding of these specific goals and
objectives, and the overall economic development mission of the City. This learning phase (i.e.,
preparation) will allow us to fully understand the operating constraints and impediments to success faced
by the City.
Diagnosis. As our team listens and learns as such, we will focus on current economic development
opportunities as well as the future development goals established by City staff and its elected officials.
UFI professionals concentrate on how economic development opportunities are planned, managed, and
executed. We will also examine and analyze each opportunity to understand how each opportunity meets
the City’s economic development objectives goals and the degree to which performance measures and
performance standards existed and are being utilized.
Opportunity Identification. The City is experiencing a
continued commitment of capital investment in housing,
retail/commercial and public infrastructure. To this fact,
UFI build will assist the City in building a bridge between
current economic development goals necessary to
develop an effective economic development strategy to
the development of strategically important privately held
real property that will most appropriately meet these
goals. To meet this challenge, best practices in the
industry must be explored and implemented to identify
areas of the economic development having the highest
potential for meeting economic development goals
within the City.
Action. UFI has a strong bias for implementation. As
practitioners, we have an orientation to achieve results
and our work moves from sound analysis to concise,
actionable recommendations. Our professionals working with the Economic Development Resource Team
will execute the work plan below consisting of strategies which will serve as a detailed roadmap outlining
how to implement the recommendations that we make to achieve the economic development goals of
the City while meeting the mandates of the Dream Extreme 2040 Plan. It is at this point, preparation
meets opportunity.
WORK PLAN
UFI and the Economic Development Resource Team will work collaboratively with the City’s management
team to conduct this high-level review of active and proposed development opportunities. In doing so,
City of Lake Elsinore
Economic Development Management Services
we will identify all strategically important privately held real property for future development.
Additionally, we will lead a discussion on objectives for leveraging opportunities to create synergy with
the City’s economic development goals. Through the course of our analysis, we expect to learn about
other economic development issues for which our team can and will create recommendations for
improvement.
The overall work plan that we are proposing first calls for the collection of data through a variety of
sources, including interviews, real property inventory, and a review of various City economic development
studies and reports. UFI, working with the Economic Development Resource Team, will then analyze that
data, apply our expertise about best practices to meet assignment objectives. UFI will review preliminary
observations and recommendations with management prior to finalizing our work and will then conclude
this assignment with the preparation of an implementation action plan. Throughout this process, team
members will meet regularly with management to provide updates on our progress.
Based on our extensive economic development and our understanding of the City’s desired outcomes, we
propose the following scope of work.
SCOPE OF WORK
o Coordination with City staff leading to the implementation of the City’s Economic Development
Strategic Plan
o As requested, participation in Economic Development Sub-Committee meetings and
presentations
o Participation and Recruitment for the planned Brokers Breakfast with the Mayor
o Assist with the design and Updating the City's ED page.
o Add Economic Development Data, Studies, and available sites for development
o Review of the City’s 5-year CIP projects to evaluate prioritization to foster economic
development and reinvestment.
o Develop a Business Growth and Retention Plan as a hedge against the possibility of a significant
recession. This may take the form of a “Shop Local” program reaching out to the individuals of
the City's top tax producers for a "One-on-one "Lunch with the Mayor" and CM.
o Serving as a sub-consultant through UFI, Kallenberger Jones & Co. will prepare a study of the
potential market support for hotel development
o Serving as a sub-consultant through UFI, 3-D advisors will provide project ombudsman services
for highly desired projects
o Prepare development and retail leads (generated at ICSC, and other Economic Development
venues)
o Work with City staff, the Economic Development Resource Team, and the Lake Elsinore Chamber
of Commerce to provide appropriate professional support to assist them with franchise
recruitment.
o Direct and manage HdL to provide demographic research for the City of Lake Elsinore and the
surrounding market area.
o Direct and manage Tierra West to provide retail market opportunity analysis for the City of Lake
Elsinore and the surrounding market area Including the following:
o Customized research for growth opportunities the City of Lake Elsinore is targeting for
location, expansion and/or relocation.
o Presentations to business prospects (retail, commercial and industrial) in support of
efforts to attract additional investment into the community.
City of Lake Elsinore
Economic Development Management Services
o Direct and Manage RSG to prepare economic, employment and/or fiscal impact analysis of
proposed development projects to properly provide information to the residents, businesses,
council members and staff within the City of Lake Elsinore.
o Preparation for and represent of City of Lake Elsinore at the International Council of Shopping
Centers (ICSC) Las Vegas International and other requested venues.
PROJECT TEAM
Given the nature of this engagement, UFI proposes to assemble a project team based on the unique
needs of the City and Successor Agency. Michael Busch will provide overall direction, Douglas
Dumhart and Chris Harrison will serve as project managers. Additional support staff from UFI will be
utilized, as necessary.
Michael Busch, President & CEO, joined UFI following a successful career in municipal government. He
has a unique background having served as a Planner, Finance Director, City Treasurer, Deputy City
Manager, and Assistant City Manager. In those roles, Mike has demonstrated experience in capital
improvement plan development, developer negotiations, development agreements, and capital project
implementation. This professional background has given him experience in strategic planning, municipal
finance, economic development / redevelopment, and project implementation, leading to the issuance of
over $200 million in tax‐exempt debt offerings as well as implementation of several redevelopment and
infrastructure projects.
Mike has a bachelor’s degree in urban and regional planning from California State Polytechnic University,
Pomona, and a master’s degree in public administration (with an emphasis in finance and public works)
from California State University, Long Beach. In 2012 and 2013, he served as an adjunct faculty member
at the University of Southern California, Graduate School of Policy, Planning, & Development.
Douglas Dumhart is Managing Member of 3D advisors. Douglas has 3 decades of local government
experience encompassing: City Administration, Building and Safety, Code Enforcement, Community
Development, Economic Development, Housing, Planning and Redevelopment. Douglas left municipal
government in 2017 and founded 3-D Advisors, LLC to assist development interests in managing
government and community relations regarding entitlement processing and permitting. His extensive
municipal experience as to how local government operates is essential knowledge for those considering
development of challenging in-fill projects. During his tenure of public service, he earned the respect of
elected leadership, his peers, and the communities he has served, by being highly competent, responsive,
ethical, and dependable. As an entrepreneurial and strategic thinker, he is proficient in consensus building
and negotiations among diverse community groups. His project management skills are evident through a
successful history of administering complex projects from concept to completion.
Douglas possesses a bachelor’s degree in economics and a master’s degree in Business Administration.
He served for five years as a Board Member on the Oversight Board for the La Palma Successor Agency,
Vice-Chairman on the Orange County Housing Authority’s Cities Advisory Committee (CAC), Secretary to
the San Juan Capistrano Housing Advisory Committee (HAC), and maintained active memberships in the
Planning Directors Association of Orange County (PDAOC), The American Planning Association (APA), the
California Association for Local Economic Development (CALED), and Municipal Management Association
of Southern California (MMASC).
City of Lake Elsinore
Economic Development Management Services
Mark Kallenberger has served as a principal of Arthur Andersen & Co. and West Coast partner in
hospitality consulting firm of Berins & Co. He held various positions with the international CPA firm,
Pannell Kerr Forster in Hawaii, and Southern California.
While he is primarily involved in evaluating existing and proposed hotels, he has considerable “hands-on”
experience in the development of resort and hospitality projects. He managed the development of a 550-
unit resort housing project in Hawaii for a subsidiary of the Swire Group. He also served as a principal in
Pentagram Development Corporation and was responsible for much of the development of a variety of
projects, including site acquisition, entitlement process, arranging of financing, and supervision of
construction. He was also employed as the Director of Hotel Development for the Carver Com panies,
where he was charged with development of hotels on lands owned by the company in Southern California.
He has considerable experience with large resorts and tourism and is the co-author of Integrated Tourist
Resorts: Case Study Evaluations published by the World Tourism Organization. Mark is a member of the
International Society of Hospitality Consultants and is a licensed Certified General Real Estate Appraiser
in California.
Hank Jones has 30 years of experience in hospitality real estate consulting and has worked in over 100
national and international hotel and resort markets.
Prior to the formation of Kallenberger Jones & Co., Hank spent five years in the hospitality industry -
consulting group at Arthur Andersen & Co. While at Arthur Andersen, Hank specialized in consulting for
international hotels and spent several months in Europe and the Caribbean evaluating resort properties.
He has also held consulting positions with Berins & Co. (a hotel consulting firm which was acquired by
Arthur Andersen in 1989) and Laventhol & Horwath. In addition, he has worked in management and staff
positions for Hyatt Hotels and Holiday Inns.
Mr. Jones holds a BA in Economics from UCLA and a Masters in Hotel Administration from Cornell
University. Hank is a visiting lecturer at the School of Hotel and Restaurant Management, Cal Poly Pomona
and has taught courses in Hotel Development and Hospitality Finance and Accounting. Mr. Jones is a
member of the International Society of Hospitality Consultants (ISHC) and has served on the boards of the
ISHC, Raymond Alf Museum of Paleontology, Temple Beth David, and South Pasadena Educational
Foundation.
Chris Harrison has over 20 years of professional experience as a Land Use Planner and Project Manager
working closely with all levels of jurisdiction staff, stakeholder groups, landowners, and community
organizations. His career includes private sector, public sector, and quasi-public sector work with an
emphasis in the northern San Diego region with an emphasis on preparation and processing of all types
of entitlement and construction related permit documents. Chris has experience negotiating for preferred
design solutions in both the pre (at the jurisdiction) and post (in the field) approval process and has
regularly met with City management, department heads, field supervisors and inspectors to resolve
project review and implementation issues. Uniquely, Chris has successfully negotiated short term
agreements with agencies that allow vital projects to move forward while the long-term procedural
guidelines were still in development including the development of design solutions that address multiple
jurisdiction policies while still meeting project goals. Chris has assisted his clients with amendments to
long range planning documents such as the General Plan and Zoning Code that successfully addressed the
issue of “precedent setting” that jurisdictions are cautious of.
City of Lake Elsinore
Economic Development Management Services
Chris holds a Bachelor of Science in Urban & Regional Planning from California State Polytechnic University
at Pomona.
REFERENCES
UFI has completed projects for hundreds of local government jurisdictions since our founding in 1972. We
are proud of our record of satisfied clients. Many of them have contracted with us on more than one
occasion. A complete list of firm references, staff, and capabilities can be found on our website at
http://www.urbanfuturesinc.com/.
HOURS, SCHEDULE, AND COST
UFI is unable to estimate the required hours for each phase of the project. However, we believe a fixed
fee of $20,000 for the Hotel Study and monthly retainer based on 30 hours a month at $250 per hour is
an effective approach to budgeting and work plan execution.
Cannabis related services are billed at the hourly rate of $250. Applications reviews funded by applicant
deposits will are billed at a fixed fee of $10,000.
Additional value-added services that are beyond the scope of work shall be agreed to by both parties via
written amendment to the contract with a specific scope of work at $250 per hour. These additional
services may include general plan amendments, entitlement audits, zone changes, site plan development,
and crafting/revising specific plans.
CONCLUSION
We look forward to working with the City of Lake Elsinore. Please feel free to contact me if you have any
questions.
Best regards,
Michael P. Busch
President & CEO