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Agreement - RSG, Inc. - Contract No. 25CDD0043 - Signed 2025-06-17
City of Gilroy Agreement/Contract Tracking Today’s Date: June 5, 2025 Your Name: Monica Sendejas Contract Type: Services over $5k - Consultant Phone Number: 408-846-0266 Contract Effective Date: (Date contract goes into effect) 7/1/2025 Contract Expiration Date: 6/30/2026 Contractor / Consultant Name: (if an individual’s name, format as last name, first name) RSG, Inc. Contract Subject: (no more than 100 characters) Real Estate and Property Disposition Services for Cherry Blossom Contract Amount: (Total Amount of contract. If no amount, leave blank) $48,455 By submitting this form, I confirm this information is complete: ➢Date of Contract ➢Contractor/Consultant name and complete address ➢Terms of the agreement (start date, completion date or “until project completion”, cap of compensation to be paid) ➢Scope of Services, Terms of Payment, Milestone Schedule and exhibit(s) attached ➢Taxpayer ID or Social Security # and Contractors License # if applicable ➢Contractor/Consultant signer’s name and title ➢City Administrator or Department Head Name, City Clerk (Attest), City Attorney (Approved as to Form) Routing Steps for Electronic Signature Risk Manager City Attorney Approval As to Form City Administrator or Department Head Acting City Clerk Attestation Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -1- 4835-2267-0361v1 LAC\04706083 AGREEMENT FOR SERVICES (For contracts over $5,000 - CONSULTANT) This AGREEMENT made this 5th day of June, 2025, between: CITY: City of Gilroy, having a principal place of business at 7351 Rosanna Street, Gilroy, California and CONSULTANT: RSG, Inc., having a principal place of business at 170 Eucalyptus Avenue, Suite 200, Vista, CA 92084. ARTICLE 1. TERM OF AGREEMENT This Agreement will become effective on 7/1/2025 and will continue in effect through 6/30/2026 unless terminated in accordance with the provisions of Article 7 of this Agreement. Any lapse in insurance coverage as required by Article 5, Section D of this Agreement shall terminate this Agreement regardless of any other provision stated herein. ______ Initial ARTICLE 2. INDEPENDENT CONTRACTOR STATUS It is the express intention of the parties that CONSULTANT is an independent contractor and not an employee, agent, joint venturer or partner of CITY. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CITY and CONSULTANT or any employee or agent of CONSULTANT. Both parties acknowledge that CONSULTANT is not an employee for state or federal tax purposes. CONSULTANT shall not be entitled to any of the rights or benefits afforded to CITY’S employees, including, without limitation, disability or unemployment insurance, workers’ compensation, medical insurance, sick leave, retirement benefits or any other employment benefits. CONSULTANT shall retain the right to perform services for others during the term of this Agreement. ARTICLE 3. SERVICES TO BE PERFORMED BY CONSULTANT A.Specific Services CONSULTANT agrees to: Perform the services as outlined in Exhibit “A” (“Specific Provisions”) and Exhibit “B” (“Scope of Services”), within the time periods described in Exhibit “C” (“Milestone Schedule”). B.Method of Performing Services CONSULTANT shall determine the method, details and means of performing the above-described services. CITY shall have no right to, and shall not, control the manner or determine the method of accomplishing CONSULTANT’S services. Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -2- 4835-2267-0361v1 LAC\04706083 C. Employment of Assistants CONSULTANT may, at the CONSULTANT’S own expense, employ such assistants as CONSULTANT deems necessary to perform the services required of CONSULTANT by this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 below. CITY may not control, direct, or supervise CONSULTANT’S assistants in the performance of those services. CONSULTANT assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholding. D. Place of Work CONSULTANT shall perform the services required by this Agreement at any place or location and at such times as CONSULTANT shall determine is necessary to properly and timely perform CONSULTANT’S services. ARTICLE 4. COMPENSATION A. Consideration In consideration for the services to be performed by CONSULTANT, CITY agrees to pay CONSULTANT the amounts set forth in Exhibit “D” (“Payment Schedule”). In no event however shall the total compensation paid to CONSULTANT exceed $48,455. B. Invoices CONSULTANT shall submit invoices for all services rendered. C. Payment Payment shall be due according to the payment schedule set forth in Exhibit “D”. No payment will be made unless CONSULTANT has first provided City with a written receipt of invoice describing the work performed and any approved direct expenses (as provided for in Exhibit “A”, Section IV) incurred during the preceding period. If CITY objects to all or any portion of any invoice, CITY shall notify CONSULTANT of the objection within thirty (30) days from receipt of the invoice, give reasons for the objection, and pay that portion of the invoice not in dispute. It shall not constitute a default or breach of this Agreement for CITY not to pay any invoiced amounts to which it has objected until the objection has been resolved by mutual agreement of the parties. D. Expenses CONSULTANT shall be responsible for all costs and expenses incident to the performance of services for CITY, including but not limited to, all costs of equipment used or provided by CONSULTANT, all fees, fines, licenses, bonds or taxes required of or impos ed against CONSULTANT and all other of CONSULTANT’S costs of doing business. CITY shall not be responsible for any expenses incurred by CONSULTANT in performing services for CITY, except for those expenses constituting “direct expenses” referenced on Exhibit “A.” Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -3- 4835-2267-0361v1 LAC\04706083 ARTICLE 5. OBLIGATIONS OF CONSULTANT A. Tools and Instrumentalities CONSULTANT shall supply all tools and instrumentalities required to perform the services under this Agreement at its sole cost and expense. CONSULTANT is not required to purchase or rent any tools, equipment or services from CITY. B. Workers’ Compensation CONSULTANT agrees to provide workers’ compensation insurance for CONSULTANT’S employees and agents and agrees to hold harmless, defend with counsel acceptable to CITY and indemnify CITY, its officers, representatives, agents and employees from and against any and all claims, suits, damages, costs, fees, demands, causes of action, losses, liabilities and expenses, including without limitation reasonable attorneys’ fees, arising out of any injury, disability, or death of any of CONSULTANT’S employees. C. Indemnification of Liability, Duty to Defend 1. As to professional liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, to the extent arising or resulting directly or indirectly from any willful or negligent acts, errors or omissions of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property. 2. As to other liability, to the fullest extent permitted by law, CONSULTANT shall defend, through counsel approved by CITY (which approval shall not be unreasonably withheld), indemnify and hold harmless CITY, its officers, representatives, agents and employees against any and all suits, damages, costs, fees, claims, demands, causes of action, losses, liabilities and expenses, including without limitation attorneys’ fees, arising or resulting directly or indirectly from any act or omission of CONSULTANT or CONSULTANT’S assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property. D. Insurance In addition to any other obligations under this Agreement, CONSULTANT shall, at no cost to CITY, obtain and maintain throughout the term of this Agreement: (a) Commercial Liability Insurance on a per occurrence basis, including coverage for owned and non-owned automobiles, with a minimum combined single limit coverage of $1,000,000 per occurrence for all damages due to bodily injury, sickness or disease, or death to any person, and damage to property, including the loss of use thereof; and (b) Professional Liability Insurance (Errors & Omissions) with a minimum coverage of $1,000,000 per occurrence or claim, and $2,000,000 aggregate; provided however, Professional Liability Insurance written on a claims made basis must comply with the requirements Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -4- 4835-2267-0361v1 LAC\04706083 set forth below. Professional Liability Insurance written on a claims made basis (including without limitation the initial policy obtained and all subsequent policies purchased as renewals or replacements) must show the retroactive date, and the retroactive date must be before the earlier of the effective date of the contract or the beginning of the contract work. Claims made Professional Liability Insurance must be maintained, and written evidence of insurance must be provided, for at least five (5) years after the completion of the contract work. If claims made coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the earlier of the effective date of the contract or the beginning of the contract work, CONSULTANT must purchase so called “extended reporting” or “tail” coverage for a minimum of five (5) years after completion of work, which must also show a retroactive date that is before the earlier of the effective date of the contract or the beginning of the contract work. As a condition precedent to CITY’S obligations under this Agreement, CONSULTANT shall furnish written evidence of such coverage (naming CITY, its officers and employees as additional insureds on the Comprehensive Liability insurance policy referred to in (a) immediately above via a specific endorsement) and requiring thirty (30) days written notice of policy lapse or cancellation, or of a material change in policy terms. E. Assignment Notwithstanding any other provision of this Agreement, neither this Agreement nor any duties or obligations of CONSULTANT under this Agreement may be assigned or subcontracted by CONSULTANT without the prior written consent of CITY, which CITY may withhold in its sole and absolute discretion. F. State and Federal Taxes As CONSULTANT is not CITY’S employee, CONSULTANT shall be responsible for paying all required state and federal taxes. Without limiting the foregoing, CONSULTANT acknowledges and agrees that: • CITY will not withhold FICA (Social Security) from CONSULTANT’S payments; • CITY will not make state or federal unemployment insurance contributions on CONSULTANT’S behalf; • CITY will not withhold state or federal income tax from payment to CONSULTANT; • CITY will not make disability insurance contributions on behalf of CONSULTANT; • CITY will not obtain workers’ compensation insurance on behalf of CONSULTANT. Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -5- 4835-2267-0361v1 LAC\04706083 ARTICLE 6. OBLIGATIONS OF CITY A. Cooperation of City CITY agrees to respond to all reasonable requests of CONSULTANT and provide access, at reasonable times following receipt by CITY of reasonable notice, to all documents reasonably necessary to the performance of CONSULTANT’S duties under this Agreement. B. Assignment CITY may assign this Agreement or any duties or obligations thereunder to a successor governmental entity without the consent of CONSULTANT. Such assignment shall not release CONSULTANT from any of CONSULTANT’S duties or obligations under this Agreement. ARTICLE 7. TERMINATION OF AGREEMENT A. Sale of Consultant’s Business/ Death of Consultant. CONSULTANT shall notify CITY of the proposed sale of CONSULTANT’s business no later than thirty (30) days prior to any such sale. CITY shall have the option of terminating this Agreement within thirty (30) days after receiving such notice of sale. Any such CITY termination pursuant to this Article 7.A shall be in writing and sent to the address for notices to CONSULTANT set forth in Exhibit A, Subsection V.H., no later than thirty (30) days after CITY’ receipt of such notice of sale. If CONSULTANT is an individual, this Agreement shall be deemed automatically terminated upon death of CONSULTANT. B. Termination by City for Default of Consultant Should CONSULTANT default in the performance of this Agreement or materially breach any of its provisions, CITY, at CITY’S option, may terminate this Agreement by giving written notification to CONSULTANT. For the purposes of this section, material breach of this Agreement shall include, but not be limited to the following: 1. CONSULTANT’S failure to professionally and/or timely perform any of the services contemplated by this Agreement. 2. CONSULTANT’S breach of any of its representations, warranties or covenants contained in this Agreement. CONSULTANT shall be entitled to payment only for work completed in accordance with the terms of this Agreement through the date of the termination notice, as reasonably determined by CITY, provided that such payment shall not exceed the amounts set forth in this Agreement for the tasks described on Exhibit C” which have been fully, competently and timely rendered by CONSULTANT. Notwithstanding the foregoing, if CITY terminates this Agreement due to CONSULTANT’S default in the performance of this Agreement or material breach by CONSULTANT of any of its provisions, then in addition to any other rights and remedies CITY Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -6- 4835-2267-0361v1 LAC\04706083 may have, CONSULTANT shall reimburse CITY, within ten (10) days after demand, for any and all costs and expenses incurred by CITY in order to complete the tasks constituting the scope of work as described in this Agreement, to the extent such costs and expenses exceed the amounts CITY would have been obligated to pay CONSULTANT for the performance of that task pursuant to this Agreement. C. Termination for Failure to Make Agreed-Upon Payments Should CITY fail to pay CONSULTANT all or any part of the compensation set forth in Article 4 of this Agreement on the date due, then if and only if such nonpayment constitutes a default under this Agreement, CONSULTANT, at the CONSULTANT’S option, may terminate this Agreement if such default is not remedied by CITY within thirty (30) days after demand for such payment is given by CONSULTANT to CITY. D. Transition after Termination Upon termination, CONSULTANT shall immediately stop work, unless cessation could potentially cause any damage or harm to person or property, in which case CONSULTANT shall cease such work as soon as it is safe to do so. CONSULTANT shall incur no further expenses in connection with this Agreement. CONSULTANT shall promptly deliver to CITY all work done toward completion of the services required hereunder, and shall act in such a manner as to facilitate any the assumption of CONSULTANT’s duties by any new consultant hired by the CITY to complete such services. ARTICLE 8. GENERAL PROVISIONS A. Amendment & Modification No amendments, modifications, alterations or changes to the terms of this Agreement shall be effective unless and until made in a writing signed by both parties hereto. B. Americans with Disabilities Act of 1990 Throughout the term of this Agreement, the CONSULTANT shall comply fully with all applicable provisions of the Americans with Disabilities Act of 1990 (“the Act”) in its current form and as it may be amended from time to time. CONSULTANT shall also require such compliance of all subcontractors performing work under this Agreement, subject to the prohibition against assignment and subcontracting contained in Article 5 above. The CONSULTANT shall defend with counsel acceptable to CITY, indemnify and hold harmless the CITY OF GILROY, its officers, employees, agents and representatives from and against all suits, claims, demands, damages, costs, causes of action, losses, liabilities, expenses and fees, including without limitation reasonable attorneys’ fees, that may arise out of any violations of the Act by the CONSULTANT, its subcontractors, or the officers, employees, agents or representatives of either. C. Attorneys’ Fees If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -7- 4835-2267-0361v1 LAC\04706083 attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled. D. Captions The captions and headings of the various sections, paragraphs and subparagraphs of the Agreement are for convenience only and shall not be considered nor referred to for resolving questions of interpretation. E. Compliance with Laws The CONSULTANT shall keep itself informed of all State and National laws and all municipal ordinances and regulations of the CITY which in any manner affect those engaged or employed in the work, or the materials used in the work, or which in any way affect the conduct of the work, and of all such orders and decrees of bodies or tribunals having any jurisdiction or authority over the same. Without limiting the foregoing, CONSULTANT agrees to observe the provisions of the Municipal Code of the CITY OF GILROY, obligating every contractor or subcontractor under a contract or subcontract to the CITY OF GILROY for public works or for goods or services to refrain from discriminatory employment or subcontracting practices on the basis of the race, color, sex, religious creed, national origin, ancestry of any employee, applicant for employment, or any potential subcontractor. F. Conflict of Interest CONSULTANT certifies that to the best of its knowledge, no CITY employee or office of any public agency interested in this Agreement has any pecuniary interest in the business of CONSULTANT and that no person associated with CONSULTANT has any interest that would constitute a conflict of interest in any manner or degree as to the execution or performance of this Agreement. G. Entire Agreement This Agreement supersedes any and all prior agreements, whether oral or written, between the parties hereto with respect to the rendering of services by CONSULTANT for CITY and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding. No other agreements or conversation with any officer, agent or employee of CITY prior to execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. Such other agreements or conversations shall be considered as unofficial information and in no way binding upon CITY. Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -8- 4835-2267-0361v1 LAC\04706083 H. Governing Law and Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions of any jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising hereunder shall be in state and federal courts located in Santa Clara County, California. I. Notices Any notice to be given hereunder by either party to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the parties at the addresses appearing in Exhibit “A”, Section V.H. but each party may change the address by written notice in accordance with this paragraph. Notices delivered personally will be deemed delivered as of actual receipt; mailed notices will be deemed delivered as of three (3) days after mailing. J. Partial Invalidity If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way. K. Time of the Essence All dates and times referred to in this Agreement are of the essence. L. Waiver CONSULTANT agrees that waiver by CITY of any one or more of the conditions of performance under this Agreement shall not be construed as waiver(s) of any other condition of performance under this Agreement. Executed at Gilroy, California, on the date and year first above written. CONSULTANT: CITY: RSG, INC. CITY OF GILROY By: By: Name: Tara Matthews Name: Sharon Goei Title: Principal Title: Community Development Director Social Security or Taxpayer Identification Number 95-3435849 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -9- 4835-2267-0361v1 LAC\04706083 Approved as to Form ATTEST: City Attorney Acting City Clerk Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -1- 4835-2267-0361v1 LAC\04706083 EXHIBIT “A” SPECIFIC PROVISIONS I. PROJECT MANAGER CONSULTANT shall provide the services indicated on the attached Exhibit “B”, Scope of Services (“Services”). (All exhibits referenced are incorporated herein by reference.) To accomplish that end, CONSULTANT agrees to assign Suzi Kim, who will act in the capacity of Project Manager, and who will personally direct such Services. Except as may be specified elsewhere in this Agreement, CONSULTANT shall furnish all technical and professional services including labor, material, equipment, transportation, supervision and expertise to perform all operations necessary and required to complete the Services in accordance with the terms of this Agreement. II. NOTICE TO PROCEED/COMPLETION OF SERVICE A. NOTICE TO PROCEED CONSULTANT shall commence the Services upon delivery to CONSULTANT of a written “Notice to Proceed”, which Notice to Proceed shall be in the form of a written communication from designated City contact person(s). Notice to Proceed may be in the form of e-mail, fax or letter authorizing commencement of the Services. For purposes of this Agreement, Sharon Goei shall be the designated City contact person(s). Notice to Proceed shall be deemed to have been delivered upon actual receipt by CONSULTANT or if otherwise delivered as provided in the Section V.H. (“Notices”) of this Exhibit “A”. B. COMPLETION OF SERVICES When CITY determines that CONSULTANT has completed all of the Services in accordance with the terms of this Agreement, CITY shall give CONSULTANT written Notice of Final Acceptance, and CONSULTANT shall not incur any further costs hereunder. CONSULTANT may request this determination of completion when, in its opinion, it has completed all of the Services as required by the terms of this Agreement and, if so requested, CITY shall make this determination within two (2) weeks of such request, or if CITY determines that CONSULTANT has not completed all of such Services as required by this Agreement, CITY shall so inform CONSULTANT within this two (2) week period. III. PROGRESS SCHEDULE The schedule for performance and completion of the Services will be as set forth in the attached Exhibit “C”. IV. PAYMENT OF FEES AND DIRECT EXPENSES Payments shall be made to CONSULTANT as provided for in Article 4 of this Agreement. Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -2- 4835-2267-0361v1 LAC\04706083 Direct expenses are charges and fees not included in Exhibit “B”. CITY shall be obligated to pay only for those direct expenses which have been previously approved in writing by CITY. CONSULTANT shall obtain written approval from CITY prior to incurring or billing of direct expenses. Copies of pertinent financial records, including invoices, will be included with the submission of billing(s) for all direct expenses. V. OTHER PROVISIONS A. STANDARD OF WORKMANSHIP CONSULTANT represents and warrants that it has the qualifications, skills and licenses necessary to perform the Services, and its duties and obligations, expressed and implied, contained herein, and CITY expressly relies upon CONSULTANT’S representations and warranties regarding its skills, qualifications and licenses. CONSULTANT shall perform such Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Any plans, designs, specifications, estimates, calculations, reports and other documents furnished under this Agreement shall be of a quality acceptable to CITY. The minimum criteria for acceptance shall be a product of neat appearance, well-organized, technically and grammatically correct, checked and having the maker and checker identified. The minimum standard of appearance, organization and content of the drawings shall be that used by CITY for similar purposes. B. RESPONSIBILITY OF CONSULTANT CONSULTANT shall be responsible for the professional quality, technical accuracy, and the coordination of the Services furnished by it under this Agreement. CONSULTANT shall not be responsible for the accuracy of any project or technical information provided by the CITY. The CITY’S review, acceptance or payment for any of the Services shall not be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and CONSULTANT shall be and remain liable to CITY in accordance with applicable law for all damages to CITY caused by CONSULTANT’S negligent performance of any of the services furnished under this Agreement. C. RIGHT OF CITY TO INSPECT RECORDS OF CONSULTANT CITY, through its authorized employees, representatives or agents, shall have the right, at any and all reasonable times, to audit the books and records (including, but not limited to, invoices, vouchers, canceled checks, time cards, etc.) of CONSULTANT for the purpose of verifying any and all charges made by CONSULTANT in connection with this Agreement. CONSULTANT shall maintain for a minimum period of three (3) years (from the date of final payment to CONSULTANT), or for any longer period required by law, sufficient books and records in accordance with standard California accounting practices to establish the correctness of all charges submitted to CITY by CONSULTANT, all of which shall be made available to CITY at the CITY’s offices within five (5) business days after CITY’s request. Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -3- 4835-2267-0361v1 LAC\04706083 D. CONFIDENTIALITY OF MATERIAL All ideas, memoranda, specifications, plans, manufacturing procedures, data (including, but not limited to, computer data and source code), drawings, descriptions, documents, discussions or other information developed or received by or for CONSULTANT and all other written and oral information developed or received by or for CONSULTANT and all other written and oral information submitted to CONSULTANT in connection with the performance of this Agreement shall be held confidential by CONSULTANT and shall not, without the prior written consent of CITY, be used for any purposes other than the performance of the Services, nor be disclosed to an entity not connected with the performance of the such Services. Nothing furnished to CONSULTANT which is otherwise known to CONSULTANT or is or becomes generally known to the related industry (other than that which becomes generally known as the result of CONSULTANT’S disclosure thereof) shall be deemed confidential. CONSULTANT shall not use CITY’S name or insignia, or distribute publicity pertaining to the services rendered under this Agreement in any magazine, trade paper, newspaper or other medium without the express written consent of CITY. E. NO PLEDGING OF CITY’S CREDIT. Under no circumstances shall CONSULTANT have the authority or power to pledge the credit of CITY or incur any obligation in the name of CITY. F. OWNERSHIP OF MATERIAL. All material including, but not limited to, computer information, data and source code, sketches, tracings, drawings, plans, diagrams, quantities, estimates, specifications, proposals, tests, maps, calculations, photographs, reports and other material developed, collected, prepared (or caused to be prepared) under this Agreement shall be the property of CITY, but CONSULTANT may retain and use copies thereof subject to Section V.D of this Exhibit “A”. CITY shall not be limited in any way in its use of said material at any time for any work, whether or not associated with the City project for which the Services are performed. However, CONSULTANT shall not be responsible for, and City shall indemnify CONSULTANT from, damages resulting from the use of said material for work other than PROJECT, including, but not limited to, the release of this material to third parties for work other than on PROJECT. G. NO THIRD PARTY BENEFICIARY. This Agreement shall not be construed or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any claim or right of action hereunder for any cause whatsoever. Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -4- 4835-2267-0361v1 LAC\04706083 H. NOTICES. Notices are to be sent as follows: CITY: Sharon Goei City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 CONSULTANT: Suzy Kim RSG, Inc. 170 Eucalyptus Avenue, Suite 200 Vista, CA 92084 I. FEDERAL FUNDING REQUIREMENTS. If the box to the left of this sentence is checked, this Agreement involves federal funding and the requirements of this Section V.I. apply. If the box to the left of this sentence is checked, this Agreement does not involve federal funding and the requirements of this Section V.I. do not apply. 1. DBE Program CONSULTANT shall comply with the requirements of Title 49, Part 26, Code of Federal Regulations (49 CFR 26) and the City-adopted Disadvantaged Business Enterprise programs. 2. Cost Principles Federal Acquisition Regulations in Title 48, CFR 31, shall be used to determine the allowable cost for individual items. 3. Covenant against Contingent Fees The CONSULTANT warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the CONSULTANT, to solicit or secure this Agreement, and that he/she has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, the Local Agency shall have the right to annul this Agreement without liability or, at its discretion, to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -1- 4835-2267-0361v1 LAC\04706083 EXHIBIT “B” SCOPE OF SERVICES Real Estate and Property Disposition Services for Cherry Blossom, located at 7255, 7257, 7259, and 7261 Monterey Street, Gilroy (APN 799-09-059). The Consultant will market the sale of the property and provide other real estate consulting services related to tenant coordination in preparation for the sale and other as-needed advisory services. The Consultant will all in a non-broker consulting capacity. Task 1: Property Disposition The Consultant will undertake the following process to market the Property: • Hold a kick-off meeting with City staff via videoconference to ensure alignment on goals, scope, and timeline. • Procure from the City environmental, title and other available documents that may be useful to prospective bidders. • Draft an Offering Memorandum (“OM”) that markets the Property and includes development requirements per the Municipal Code and any applicable specific plans and City policies. • Provide digital copy of the OM on third-party CRE listing services (CoStar, RSG website), City website (if desired), and distribute within the Consultant's network of developers. • Post for-sale signage on the property, if desired. Third-party printing and signage posting costs would be paid by the City as a reimbursable expense noted in the fee proposal. • Respond to prospective buyer inquiries for up to 20 hours. Additional hours may require a contract amendment if it leads to exceeding the contract budget. • Hold up to four open houses for interested parties to tour the Property. Additional tours could be provided on a time and materials basis. If additional tours are requested outside of those planned in advance with the City, the Consultant will forward requests to City staff to consider. • Provide client biweekly updates of interest and offers during solicitation process. • Vet proposals for completeness and clarification and prepare summary matrix for the City at the end of the listing period. • Review with the City offers and assist in the selection process. Includes two meetings with City staff via video conference. • Assist negotiations with selected development partner. This could lead to an exclusive negotiating agreement (“ENA”), development agreement, or purchase and sale agreement secured by a deposit from selected partner to cover City costs associated with negotiating the terms and Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -2- 4835-2267-0361v1 LAC\04706083 conditions of sale and development. The Consultant will draft term sheets for the City’s attorney to draft such documents. The Consultant will review and provide input on draft disposition documents to the City’s attorney. The fee proposal includes up to 12 hours of negotiations (verbal and written with buyer and coordination with staff/City Council). • Conduct in-person meetings with City Council as may be necessary during this process – including preparation of materials and presentations as warranted (staff reports, resolutions, PowerPoint, etc.). Two in-person City Council meetings are included in the fee proposal. Additional meetings would be conducted on a time-and-materials basis. The period to which offers are accepted will be reliant on the quality of the asset and its perceived interest from the market. Preliminarily, we recommend a 90-day period to solicit offers on the Property. A sample offering memorandum is enclosed with this proposal. Task 2: As-Needed Real Estate Advisory Services The Consultant will assist with real estate advisory services on an as-needed basis to prepare the Property for sale, such as tenant coordination and strategy meetings with City staff and attorneys. This may include but is not limited to: • Meetings to advise on options to address tenant/landlord issues to prepare the Property for sale based on terms negotiated with prospective buyers. • Negotiating and executing leases with residential and/or commercial tenants, if desired by City staff and/or prospective buyers. Special legal counsel (BBK) has drafted leases in the past; the Consultant would coordinate updates to leases with BBK if needed. • Negotiating and drafting an affordable housing covenant for the Property if the City and prospective buyers decide to operate the Property as deedrestricted affordable housing. • Tenant coordination to address tenant issues as they may arise, including but not limited to if a tenant decides to move out of the Property before a sale is negotiated. • Due diligence and escrow coordination related to the sale. Activities may include: 1. Monitoring milestones and managing timely due diligence. 2. Collecting from the City documents in its possession and providing these to the buyer in accordance with the terms of the purchase and sale agreement. 3. Collecting due diligence documents from the Buyer and providing these to the City in accordance with the terms of the purchase and sale agreement. 4. Accommodating requests for buyer inspections in collaboration with City staff as appropriate. 5. Responding to buyer requests relative to the results of any due diligence and advising the City as appropriate. The Consultant can facilitate coordination with escrow and title, including Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -3- 4835-2267-0361v1 LAC\04706083 outreach to the escrow company to get an escrow number and agent assigned for the transaction, coordination with the City Finance Department and developer on the wiring instructions on a timely basis, and generally oversee and manage due diligence and schedule as required for the City as seller. • General as-needed real estate advisory services including but not limited to pro forma analysis, market studies, document review, relocation obligation advice, and other activities. Services under Task 2 will be provided on a time and materials basis up to the contracted amount. If additional services are necessary, a contract amendment may be negotiated. Note this scope of services does not include implementing permanent relocation. If relocation is necessary, a separate proposal can be provided to the City or prospective buyer upon request. Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 -1- 4835-2267-0361v1 LAC\04706083 EXHIBIT “C” MILESTONE SCHEDULE All services within this agreement will be conducted by June 30, 2026. Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 4835-2267-0361v1 LAC\04706083 EXHIBIT “D” PAYMENT SCHEDULE The Consultant will provide the services outlined in the Scope of Services within a budget of $48,455. For Task 1 (Property Disposition) the estimated cost is $31,755 billed on a time and materials basis and $3,500 for reimbursables including a graphic designer, signage, and third-party listing services. Services under Task 2 (As Needed Real Estate Advisory Services) will be provided on a time and materials basis up to the contracted amount, with an estimated budget of $13,200. An itemized budget follows. Task 1: Property Disposition Kick-Off & Data Collection (1 video conference), 2 hrs Director = $550 OM and Marketing, 5 hrs Director, 10 hrs Analyst, $3,500 Reimb. = $6,325 Respond to Inquiries (20 hours) + Progress Reports, 1 hr Principal, 12 hrs Director, 12 hrs Analyst = $5,335 Open Houses (4 open houses/tours), 24 hrs Director = $6,600 Offer Summary & Review (2 video conferences), 2 hrs Principal, 16 hrs Director, 8 hrs Analyst = $6,150 City Council (2 meetings), 2 hrs Principal, 16 hrs Director = $4,990 Buyer Negotiations/Counters (12 hours), 2 hrs Principal, 10 hrs Director = $3,340 Term Sheet for City Attorney, 2 hrs Director = $550 Agreement Review, 2 hrs Principal, 3 hrs Director = $1,415 Task 1 Subtotal = $35,255 Task 2: As Needed RE Advisory Services, 5 hrs Principal, 40 hrs Director = $13,200 TOTAL (14 hrs Principal, 130 hrs Director, 35 hrs Analyst, $3,500 Reimb.) = $48,455 Due to the unpredictable nature of property negotiations, the Consultant's fee would be charged on a time and materials basis up to the contract amount. Any work completed above the contract amount or beyond the contract term will be done with staff’s advance authorization may require a contract amendment. If offers or sales negotiations do not result in successful disposition and the City decides to relist the Property, it may require a contract amendment. The Consultant's fee would be payable monthly and invoiced based on a time and materials basis using the following hourly billing rates: Principal $295 Director $275 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 4835-2267-0361v1 LAC\04706083 Senior Associate $225 Associate $195 Senior Analyst $160 Analyst $145 Research Assistant $135 Technician $100 Clerical $60 Reimburseable Expenses = Cost plus 10% The Consultant will not charge the City for travel or mileage (except direct costs related to field work/surveys), parking, standard telephone/fax expenses, general postage, or incidental copies. However, the Consultant will charge for messenger services, overnight shipping/express mail costs, and teleconferencing services. The Consultant will also charge for copies of reports, documents, notices, and support material in excess of five copies. The Consultant will bill reimbursable costs at the actual expense plus a 10% surcharge. Invoices will be submitted monthly and are payable upon receipt. Invoices identify tasks completed to date, hours expended, and the hourly rate. Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 12/05/2024 The Empire Company 550 North Park Center Drive Suite 205 Santa Ana CA 92705 Erica Hornaday ehornaday@empire-co.com RSG, Inc. 170 Eucalyptus Avenue Suite 200 Vista CA 92084 Hartford Underwriters Insurance Company 30104 Trumbull Insurance Company 27120 Berkley Assurance Company 39462 25-26 MASTER A 72SBABH1DMT 01/01/2025 01/01/2026 1,000,000 1,000,000 10,000 1,000,000 2,000,000 2,000,000 A 72SBABH1DMT 01/01/2025 01/01/2026 1,000,000 A 10,000 72SBABH1DMT 01/01/2025 01/01/2026 2,000,000 2,000,000 B Y 72WECVK8727 01/01/2025 01/01/2026 1,000,000 1,000,000 1,000,000 C ERRORS & OMISSIONS CLAIMS MADE VUMB0161147 11/13/2024 11/13/2025 AGGREGATE LIMIT 1,000,000 EACH CLAIM 1,000,000 DEDUCTIBLE 10,000 City of Gilroy, its officers, officials and employees are named as Additional Insured under the General Liability where required by written contract, per form (SS 00 08 04 05). City of Gilroy 7351 Rosanna Street Gilroy CA 95020 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354 Docusign Envelope ID: EF711218-3BF3-4E83-92D2-7D223D711354