HomeMy WebLinkAboutDevelopment Management Group PSA Economic Development Consulting Services 07-01-2018 DocuSign Envelope ID:A3E7F2C7-770E-4B73-B034-9A1 D5078C97C
AGREEMENT FOR PROFESSIONAL SERVICES
BEWEEN DEVELOPMENT MANAGEMENT GROUP, INC.
AND THE CITY OF LAKE ELSINORE
ECONOMIC DEVELOPMENT CONSULTING SERVICES
This Agreement for Professional Services (the "Agreement") is made and entered into as
of July 1, 2018, by and between the City of Lake Elsinore, a municipal corporation ("City") and
Development Management Group, Inc... ("Consultant").
RECITALS
A. The City has determined that it requires professional services for the economic
development services as identified in Exhibit A.
B. Consultant has submitted to City a proposal incorporate 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 (Exhibit A), 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. 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. Contractor 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. Contractor'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 Contractor provides services. Contractor'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
Contractor no later than forty-five (45) days after receipt of the monthly invoice by City staff.
5. Reserved.
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 thirty
ten 30 (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.
7. 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
acknowledges that any use of such materials in a manner beyond the intended purpose as set
forth herein shall be at the sole risk of the City. City further agrees to defend, indemnify and
hold harmless Consultant, its officers, officials, agents, employees and volunteers from any
claims, demands, actions, losses, damages, injuries, and liability, direct or indirect (including
any and all costs and expenses in connection therein), arising out of the City's use of such
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materials in a manner beyond the intended purpose as set forth herein. This Section shall not
apply to those documents listed under Copyright Protection in Exhibit A, as Development
Management Group, Inc. desires to protect certain intellectual property (methodology and
presentation).
a. 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.
b. 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.
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
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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. It is understood that Consultant, in the performance of
the work and services agreed to be performed, shall act as and be an independent contractor
and shall not act as an agent or employee of the City.
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.
Notwithstanding any other federal, state and local laws, codes, ordinances and
regulations to the contrary, 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.
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
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
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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. Consultant shall use the standard of care in its profession
to comply with all applicable federal, state and local laws, codes, ordinances and regulations.
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 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 of 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
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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.
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 AM and shall be
endorsed with the following specific language:
i. The City, its elected or appointed officers, officials, employees,
agents and volunteers are to be covered as additional insured with respect to liability
arising out of work performed by or on behalf of the Consultant, including materials,
parts or equipment furnished in connection with such work or operations.
ii. This policy shall be considered primary insurance as respects the
City, its elected or appointed officers, officials, employees, agents and volunteers.
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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.
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
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If to Consultant: Michael Bracken, Managing Partner
Development Management Group, Inc.
The Economic Architects
41-625 Eclectic St., Suite D-2
Palm Desert, CA 92260 (760)
346-8820(office)
(760) 346-8887 (fax)
18. Entire Agreement. This Agreement constitutes the complete and exclusive
statement of Agreement between the City and Consultant. All prior written and oral
communications, including correspondence, drafts, memoranda, and representations, are
superseded in total by this Agreement.
19. 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.
20. 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.
21. 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.
22. 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.
23. 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.
24. 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.
25. 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
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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.
26. Execution. 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.
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
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. 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
liability. 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.
29. 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.
30. 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 parties
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.
31. Execution. 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
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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.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the date first written above.
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Attachments: Exhibit A—Consultant's Proposal
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EXHIBIT A
CONSULTANT'S PROPOSAL
Compensation
DMG, Inc. will provide a professional services timesheet and would reserve the right to bill for
less than the retainer amount should the number of hours worked in a given month not justify
the full retainer amount. The retainer amount shall be
FY 2018-19: $11,000 per month.
FY 2019-20: $11,500 per month.
FY 2020-21: $12,000 per month
Costs within Retainer
All professional services as described above shall be include in our retainer as will travel to
ICSC Las Vegas, ICSC Western Region (San Diego or Los Angeles) and ACRE. Travel to
and from the City of Lake Elsinore, when desired, is also included. DMG, Inc. shall request
travel reimbursement (to be approved in writing prior to incurring expenses) to other
events/venues not shown above.
DMG, Inc. shall be responsible for ancillary costs associated with certain office supply type
materials in preparation for various projects (not inclusive of commercial-type designs or
commercial scale/quality printing).
DMG, Inc. shall have the ability to request reimbursement for extraordinary or unusual
expenses. Such requests shall be made in advance of the expense and shall be within the
established policy, protocol or guidelines of the City of Lake Elsinore.
All payments to Consultant shall be paid by the City of Lake Elsinore within thirty (30) days of
submittal of an invoice and a signed United States Internal Revenue Service W-9.
Certainty of Fee Arrangement and Contract Limit
DMG, Inc. shall commit to the proposed fee arrangement being in place until June 30, 2021
(end of the 2020-21 Fiscal Year) to provide the City of Lake Elsinore a stable professional
services rate.
Term of Agreement:
Development Management Group, Inc. is requesting the City of Lake Elsinore consider a three
(3) year agreement. As you are aware economic development is an ongoing process which
takes a level of planning, marketing, sales,follow-up and follow-through. Economic investment
seeks certainty within the community including elected officials, appointed officials (namely the
Planning Commission), community leadership and staff. A three-year commitment allows us
to market a level of contract stability. Even under this type of arrangement both the City of
Lake Elsinore and Development Management Group, Inc. shall maintain the ability to terminate
with or without cause a professional arrangement with thirty (30) days notice.
Background and Scope
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By way of background, DMG, Inc. first began serving the City of Lake Elsinore on an "On-Call"
basis in April 2014. In July 2015 DMG, Inc. began a "Full Service" contract with your
community under a three (3) year agreement. During this time, we have been active in the
following projects/initiatives:
1. Served as a project ombudsman on the proposed Wal-Mart project. The project is now
fully entitled. The project plans have been submitted for approval and the 31 Street
Flood Control project is at bid. Construction is slated to begin in the 3rd quarter of 2018
with Walmart opening in September 2019.
2. Represented the City at ICSC-Las Vegas and Western Regional ICSC (San Diego and
Los Angeles). We have both hosted various brokers, developers and retailers and
participated in 20+ meetings at each event. This has led to several developer and
retailer relationships that have manifested themselves in new businesses in the City of
Lake Elsinore (or under construction). These include: Peninsula Retail Partners
Central Plaza, Marshall's, ULTA, Skechers, Panera, Starbucks, Pieology, Aldi, Chick-
Fil-A.
3. Participated as an economist in the evaluation of Alberhill Villages Specific Plan. Our
work helped the City successfully negotiate a development that is (at least) revenue
neutral versus the original proposal that would have put significant financial strain on
the City.
4. Generated a Long-Term Economic Development Strategic Plan that addresses retail,
office, industrial and residential.
5. Completed Retail and Hotel Market Analysis that has been used by various developers
and retailers (along with hoteliers) to make investment decisions (some of the users
have included Diamond Indoor Sports, Civic Partners, Lake Elsinore Outlets, La Quinta
Inn & Suites)
6. Created Annual Market Demographics and Retail Market Opportunity that is used by
retailers, brokers and developers (distributed via email, hardcopy and at special
events).
7. Working with City Attorney and Administration, formed new JPA and negotiated
agreements with SMER Research 1, LLC for the City of Lake Elsinore to take
advantage of fixed pricing for electricity purchases (20-year agreement). Project is
currently under construction.
8. Leading negotiations with six (6) landowners and developers in the La Strada area to
reach agreement for a Road and Bridge Benefit District (RBBD) and related
Development Agreements (in process).
9. Leading negotiations with industrial developer to bring new manufacturing operation to
Lake Elsinore on former RDA property (in process).
The balance of this document is designed to review what professional services we propose to
provide under a long-term arrangement between the City of Lake Elsinore and Development
Management Group, Inc.
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Professional Responsibilities of DMG, Inc.
1. DMG, Inc. shall have professional and functional responsibility for the implementation of
the Economic Development Strategic Plan during the period of the contract proposed.
2. During the time that the Plan is being generated, DMG, Inc. shall continue to serve as a
project ombudsman for Wal-Mart, Proposed New Car Dealership, Central Plaza and others
as they are submitted to the City.
3. DMG, Inc. shall continue to follow-up regarding development and retail leads (generated
at ICSC, Retail Live, ACRE and organically within the City/community).
4. DMG, Inc. shall coordinate with the Lake Elsinore Chamber of Commerce to provide
appropriate professional support to assist them with franchise recruitment. Said support
may include general and specialized market studies, providing contacts and assisting with
an understanding of project financing.
5. Demographic research for the City of Lake Elsinore and the surrounding market area.
6. Retail market opportunity analysis for the City of Lake Elsinore and the surrounding market
area.
7. Produce an ongoing electronic marketing campaign (specific to retailers, developers and
industrial/office users)
8. Customized research for companies that the City of Lake Elsinore is targeting for location,
expansion and/or relocation.
9. DMG, Inc. presentations to business prospects (retail, commercial and industrial) in
support of efforts to attract additional investment into the community.
10. 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.
11. Preparation for and represent of City of Lake Elsinore at industry trade-shows including the
International Council of Shopping Centers (ICSC) Las Vegas International and Western
Regional Conference(s).
12. Generate customized market research for a variety of industries (in addition to retail, which
is specified above).
13. Project management and ombudsman services to the City of Lake Elsinore serving as a
go-between and on-going communicator between the City and a developer/development
project.
14. Provide Economic Development Training to City of Lake Elsinore staff, business leaders,
appointed and elected officials.
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15. DMG, Inc. shall serve as a project coordinator, ombudsperson and liaison with funding
sources at the County, State and Federal level as it pertains to helping achieve economic
development objectives in the City of Lake Elsinore.
16. Additional economic development and post-redevelopment related services as needed
(and mutually agreed upon).
Economic Impact Reports
From time to time, the City will desire an Economic Impact Report (brief)that contemplates the
anticipated tax revenue along with employment and wages from a potential project. These
reports (as have been done in the past on such projects as Diamond Indoor Sports,
WakeRider, La Quinta Inn &Suites, Vantage Auctions,Walmart and Central Plaza are included
in our retainer services.
Fiscal Impact Reports
From time to time, the City may desire a full Fiscal Impact Report. These reports generally
contemplate the impact to the City of Lake Elsinore from large scale endeavors such as
residential development, specific plans, annexations and new major industries (such as
cannabis). These are complex in nature and are specialized. These reports are not included
within our retainer but are available upon request. In all cases whereby the City requests such
services, a proposal will be generated for consideration.
Copyright Reservation
DMG, Inc. has proprietary claims on three professional service products. These include a)
Fiscal Impact Analysis, b) Economic/Job Impact Analysis c) EB-5 Economic & Job Creation
Analysis. While DMG, Inc. may be asked to provide these services to the City of Lake Elsinore,
it shall be understood that DMG, Inc. shall reserve the right to copyright work completed.
Further, the City of Lake Elsinore shall be granted unlimited use of said reports in their final
form. Note that the copyright provision is to protect the intellectual property (form, style,
function) of DMG, Inc.'s work rather than to limit the dissemination of the work.
Note: EB-5 Analysis may be generated for projects within the City of Lake Elsinore, but the
contracting entity would be an EB-5 investor, and/or a regional center and a separate contract
would be executed with them for said services. If DMG, Inc. is asked to perform such services,
the City of Lake Elsinore shall be notified in writing and can either authorize or reject said work
prior to execution of a contract.
Insurance
Development Management Group, Inc. shall have a Certificate of Liability Insurance (ACORD)
with the City of Lake Elsinore named as additional insured prior to commencement of any work
under this Agreement. DMG, Inc. respectfully requests that the City of Lake Elsinore accept
the following insurance limits as satisfactory based on the professional services being
provided.
Professional Error& Omission
Issued by: Continental Casualty Insurance Company/ Policy Number: 425311802: $1,000,000
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Commercial General Liability
Issued by: Sentinel Insurance Company, Limited 72 SBA IB8260
Commercial General Liability: $2,000,000
Personal and Advertising Injury: $2,000,000
Medical Expense (any one person): $10,000
Damages to Premises Rented to DMG, Inc.: $1,000,000
Aggregate Limits Products-Completed Operations: $4,000,000
General Aggregate: $4,000,000
Umbrella Liability: $1,000,000 (each occurrence & aggregate) ($10,000 retention)
Automotive and Automobile Liability
Issued by: Farmers Insurance Exchange / Policy number 606290333
Combined Single Limit (each accident): $1,000,000
Hold Harmless
Development Management Group, Inc. shall hold the City of Lake Elsinore harmless regarding
any claims resulting from personal injury or automobile accidents.
Termination
If the Consultant does not perform the work in this Agreement or becomes unable to perform
such work, the City of Lake Elsinore shall have the right to terminate this Agreement with thirty
(30) days written notice. At such time, Consultant shall have the right to submit an invoice for
work performed to date along with the actual work performed to the City of Lake Elsinore. The
City of Lake Elsinore shall have thirty (30) days for which to make payment to Consultant for
all work performed prior to termination. DMG, Inc. shall also reserve the right to terminate the
provision of professional services to the City of Lake Elsinore with a thirty (30) day notice.
In such case as either the City of Lake Elsinore or DMG, Inc. terminates services under this
Agreement (or at the end of the contract), DMG, Inc. shall be responsible for providing a final
"Project Status Report" and an electronic version of all files pertaining to economic
development work in the City of Lake Elsinore
Disclosed Ownership/Directorship in Publicly Traded Company
Michael Bracken as the Managing Partner of Development Management Group, Inc. is
individually involved as a Founder and Director of Community Valley Bank based in El Centro,
CA. His ownership (inclusive of shares held (directly, and in trust) as well as options does not
exceed 5% of the total outstanding ownership of the bank. The company trades under Stock
Symbol CMUV. Under an abundance of caution, Michael Bracken shall not vote on any loans
that may be considered by the bank in the City of Lake Elsinore. It is disclosed that as a
Director, Mr. Bracken does receive compensation but said compensation is NOT based on
referrals nor a percentage of any customer or loan transaction.
Exclusivity
Under this proposed retainer agreement, DMG, Inc. would agree to NOT represent any other
community within the market area of Lake Elsinore. This shall include Corona, Wildomar,
Temecula, Murrieta and Menifee nor any project in that general area within the County of
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Riverside.
Conflict Procedures & Disclosures
DMG, Inc. is a highly experienced economic development consulting firm and does have both
active and inactive clients throughout Southern California. Within the Inland Empire
specifically, we have active contracts with Manheim Investments (their nearest facilities are in
Riverside and Fontana) and Elmore Sports Management (the operators of the Inland Empire
66'ers California League Professional Baseball Franchise) and the City of Colton.
If there is a potential conflict whereby a community DMG, Inc. is working on behalf of and a
specific business client (that is negotiating or comparing multiple communities represented by
DMG, Inc.), DMG, Inc. shall offer to represent the first community that identified that particular
client to DMG, Inc.
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