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HomeMy WebLinkAbout2018 Agreement for Economic Development Strategy - Amendment No. 1FIRST AMENDMENT TO ECONOMIC AND PLANNING SYSTEMS, INC. WHEREAS, the City of Gilroy, a municipal corporation ( "City "), and Economic and Planning Systems, Inc. entered into that certain agreement entitled Economic and Planning Systems, Inc., effective on May 1, 2018, hereinafter referred to as "Original Agreement"; and WHEREAS, City and Economic and Planning Systems, Inc. have determined it is in their mutual interest to amend certain terms of the Original Agreement, consistent with the Summary of Budget Amendment enclosed herewith providing for additional work and services totaling $30,000.00. NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS: 1. ARTICLE 4. COMPENSATION, Section A. Consideration, of the Original Agreement shall be amended to read as follows: In no event however shall the total compensation paid to CONSULTANT exceed $50,000.00. 2. Exhibit "B" — Scope of Services, Task 3 of the Original Agreement shall be deleted and replaced with the following: Task 3: Prepare Corridor Analysis This task is primarily being conducted for the City with involvement from the GEDC. EPS will evaluate the Monterey Street Corridor between 3`a and 10 "' Streets. In addition to reviewing and discussing the economic role and more general strengths and weaknesses of this major corridor, EPS will review the general economic performance, appearance, and strategic importance of key sites that may be candidates for various types of infrastructure and appearance upgrades or more fundamental repositioning. Specific focus will be applied to understanding the economic feasibility of infill development within the Monterey Street Corridor with reference to market conditions, location - related factors, property owner objectives, and City objectives. EPS will meet with key property owners and /or anchor tenants (as warranted and appropriate) to discuss specific aspects of the market, specific development concepts, and factors influencing the feasible utilization of land and building as part of the City's vision for a more dynamic and diverse Monterey Street Corridor. Based on the related findings, EPS will recommend strategic actions, improvements, and incentives the City may provide to spur private investment in up to 3 priority areas. The study will include reference to best practice used successfully by other jurisdictions having similarities to the City of Gilroy. 3. Exhibit `B" — Scope of Services of the Original Agreement shall be amended by adding the following: Task 7: GPAC Meeting Attendance EPS will attend GPAC meetings to relate lessons learned in the evaluation of economic development potentials to the ongoing General Plan Update process. The overall meeting 4830 - 1918 -62890 CCHU104706083 allowance of $10,000 includes the cost of preparation, direct costs, meeting time, and follow - up discussion with the CityEPS charges for its services on a direct -cost (hourly billing rates plus direct expenses), not -to- exceed basis; therefore, you will be billed only for the work completed up to the authorized budget amount. Data or reproduction expenses will be billed at cost, and invoices are submitted monthly and are payable on receipt. If additional work or meetings are required, EPS will request authorization for additional budget with the understanding that terms will be negotiated in good faith. EPS's Hourly Billing Rates are attached as part of this Scope. 4. This Amendment shall be effective on August 21, 2018 5. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in full force and effect. In the case of any inconsistencies between the Original Agreement and this Amendment, the terms of this Amendment shall control. 6. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set forth besides their signatures below. CITY OF GILROY By: [signature] Gabriel A. Gonzalez [employee name] City Administrator [title /department] Date: 9k-jzz. `Sc Approved as to Form 'C City Attorney Economic & Pla terns By: [sign David Zehnder [name] Managing Principal [title] Date: 7 tr 4830 - 1918- 6289v1 _2 _ CCHM04706083 August 21, 2018 Gabriel Gonzales City Administrator City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 Subject: Gilroy Place -Based Economic Development Strategy— Budget Amendment Request; EPS #182099 771c E'ccaComics o/ Lund USC Dear Gabe: Economic & Planning Systems, Inc. (EPS) has appreciated the opportunity to prepare an economic development strategy update (Project), focusing on specific corridors and opportunity sites in the City of Gilroy (City) for place -based analyses to attract new users that can (ell realize new jobs and tax revenue to the City. The Project is being prepared in conjunction with a similar Scope of Work (Scope) with the Gilroy Economic Development Corporation (GEDC). EPS's original Scope with the City is to prepare an evaluation of 2 commercial corridors: 1st Street between Church Street and Santa Teresa Boulevard and 10th Street between US Highway 101 and Monterey Street. Through the course of the Project, the City has indicated this analysis may serve as a critical assessment that may have direct connections to the City's ongoing General Plan Update process and other land use policy decisions. To that effect, the City has requested EPS expand the Scope to include 1 additional City corridor (Monterey Street between 3rd Street and 10th Street) and to participate in City General Plan Advisory Committee (GPAC) meetings. EPS is requesting the City consider authorizing a budget amendment to fund the additional work efforts anticipated as the Project continues. Economic & Planning Systems, Inc. 400 Capitol Mall, 28th Floor Sacramento, CA 95814 916 649 8010 tel 916 649 2070 fax Oakland Sacramento Denver Los Angeles www.epsys.com Gabe Gonzales August 21, 2018 Page 2 Summary of Budget Amendment EPS's initial Scope allocated $20,000 for the City's portion of the Project, as shown in the table below. Table 1 Budget Estimate Staff Analyst Production Cost Direct Grand EDC Share City Share TasklDescrlpllon Zehnder Martin [1] staff Subtotal Costs 12] Total % Amount % Amount Task 1: Initiate Project 2 4 8 0 $2,500 $125 $2,625 70% 1,838 30% 788 Task 2.1: Identify Opportunity Site Short List 8 8 5 0 $4,785 $125 $4,910 100% 4,910 0% 0 Task 2.2: Evaluate Opportunity Site 15 25 32 0 $14,100 $125 $14,225 100% 14,225 0% 0 Task 3: Prepare Corridor Analysis 19 28 40 0 $16,950 $220 $17,170 7.5% 1,288 92.5% 15,882 OPTIONAL Task 4: Review Urban Design 0 0 0 0 $0 $0 $0 70% 0 30% 0 Task 5: Interim Check -In 6 6 0 1 $3,200 $125 $3,325 70% 2,328 30% 998 Task 6: Prepare Report and Presentation 6 14 20 2 $7,620 $125 $7,745 70% 5,422 30% 2,324 Total 56 85 105 3 49,155 845 50,000 60% 30,009 40% 19,991 Billing Rates [3] $290 $230 $125 $80 111 Representative ofgeneral structure of personnel with blended rates: specific personnel and positions subjectto refinement within this overall budget. 121 Direct costs include travel costs, meals, shipping, printing and data acquisition. [3] Subject to change basede on specific perennial, updated annually. Pursuant to the City's request to add the Monterey Street corridor to Task 3: Prepare Corridor Analysis, EPS requests a $20,000 budget extension to Task 3.1 As previously mentioned, the City also requested EPS add a new tasl�: Task 7: GPAC Meeting Attendance. Task 7 will include preparing as- needed technical support materials and attending GPAC meetings. Based on discussions with the City, a budget amount of $10,000 has been established to cover these costs. EPS therefore requests a budget extension of $20,000 for Task 3 to fund future work efforts, and authorization of an additional $10,000 for Task 7, for a total budget extension /amendment of $30,000. EPS's currently anticipated additional work efforts are described in detail below. It is expected that preliminary conclusions from this effort (EPS #182099) will be provided in approximately 4 weeks from receiving written approval to proceed. These conclusions will be included within a draft document reflecting overall conclusions from the larger GEDC /City effort referenced above (including EPS #182020) in approximately 6 weeks from receiving authorization to proceed with this expanded corridor analysis. 1 Because of the strategic importance of this corridor to the City's future and increased complexity related to potential use options, EPS is requesting a somewhat higher amount for this corridor relative to the 1st Street and 10th Street corridors currently being evaluated. Gabe Gonzales August 21, 2018 Page 3 Task 3: Prepare Corridor Analysis This task is primarily being conducted for the City with involvement from the GEDC. EPS will evaluate the Monterey Street Corridor between 3rd and 10th Streets. In addition to reviewing and discussing the economic role and more general strengths and weaknesses of this major corridor, EPS will review the general economic performance, appearance, and strategic importance of key sites that may be candidates for various types of infrastructure and appearance upgrades or more fundamental repositioning. Specific focus will be applied to understanding the economic feasibility of infill development within the Monterey Street Corridor with reference to market conditions, location - related factors, property owner objectives, and City objectives. EPS will meet with key property owners and /or ,anchor tenants (as warranted and appropriate) to discuss specific aspects of the market, specific development concepts, and factors influencing the feasible utilization of land and buildings as part of the City's vision for a more dynamic and diverse Monterey Street Corridor. Based on related findings, EPS will recommend strategic actions, improvements, and incentives the City may provide to spur private investment in up to 3 priority areas. The study will include reference to best practices used successfully by other jurisdictions having similarities to the City of Gilroy. Task 7: GPAC Meeting Attendance EPS will attend GPAC meetings to relate lessons learned in the evaluation of economic development potentials to the ongoing General Plan Update process. The overall meeting allowance of $10,000 includes the cost of preparation, direct costs, meeting time, and follow -up discussion with the City. EPS charges for its services on a direct -cost (hourly billing rates plus direct expenses), not -to- exceed basis; therefore, you will be billed only for the work completed up to the authorized budget amount. Data or reproduction expenses will be billed at cost, and invoices are submitted monthly and are payable on receipt. If additional work or meetings are required, EPS will request authorization for additional budget with the understanding that terms will be negotiated in good faith. EPS's Hourly Billing Rates are attached as part of this Scope. On behalf of EPS, thank you for this opportunity to assist the City with this important and intriguing analysis. Please call me at (916) 649 -8010 with questions or comments regarding this proposed Scope. Sincerely, ECONOMIC & PLANNING SYSTEMS, INC. (EPS) David Zehnder Managing Principal Attachment 2018 HOURLY BILLING RATES Sacramento Office Managing Principal $260 -$290 Senior Principal $300 Principal $230 -$245 Executive /Senior Vice President $230 Vice President $205 Senior Technical Associate $190 Senior Associate $175 Associate $160 Research Analyst II $120 Research Analyst I $90 Production and Administrative Staff $80 Billing rates updated annually.