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R-04-01-08-7E1 - 1/8/2004RESOLUTION NO. R -04-01-08-7E1 WHEREAS, the City of Round Rock desires to retain professional real estate services relating to possible purchase of real property, and WHEREAS, Summit Commercial Industrial Properties, Inc. has submitted a Consulting Agreement for Professional Services to provide said services, and WHEREAS, the City Council desires to enter into said agreement with Summit Commercial Industrial Properties, Inc., Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City a Consulting Agreement for Professional Services for Possible Purchase of Real Property with Summit Commercial Industrial Properties, Inc., a copy of said agreement being attached hereto as Exhibit "A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended RESOLVED this 8th day of January, 209_4. / City o Round Rock, Texas ATTEST: CHRISTINE R. MARTINEZ, City Secretary @PFDesktop\::ODMA/WORLDOX/O:/WDOX/RESOLUTI/R40108E1.WPD/—c CITY OF ROUND ROCK CONSULTING AGREEMENT FOR PROFESSIONAL SERVICES OF SUMMIT COMMERCIAL INDUSTRIAL PROPERTIES, INC. THIS AGREEMENT for professional real estate services ("Agreement") is made by and between the City of Round Rock, a Texas home rule municipal corporation, whose offices are located at 221 East Main Street, Round Rock, Texas 78664-5299, ("City") and Summit Commercial Industrial Properties, Inc. ("Summit" or "Consultant"), whose offices are located at 18 Chisholm Trail Road, Round Rock, Texas 78681. RECITALS: WHEREAS, City desires to contract for professional real estate services relating to possible purchase of real property, and WHEREAS, the parties desire to enter into this Agreement to set forth in writing their respective rights, duties and obligations hereunder; NOW, THEREFORE, WITNESSETH: That for and in consideration of the mutual promises contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, it is mutually agreed between the parties as follows: 1.01 EFFECTIVE DATE, DURATION, AND TERM This Agreement shall be effective on the date this Agreement has been signed by each party hereto, and shall remain in full force and effect unless and until it expires by operation of the term indicated herein, or is terminated or extended as provided herein. The term of this Agreement shall be for twelve (12) months beginning from the effective date hereof. City reserves the right to review the progress of the subject matter of this Agreement at any time, and may elect to terminate with or without cause. 1.02 PAYMENT As consideration for the professional services to be performed by Summit, the parties expressly agree as follows: Financial compensation for real estate services provided by Summit shall be real estate commissions paid by the sellers of the parcels to Summit if, as and when closing and funding occurs. It is expressly understood and agreed by and between the parties that in no event shall commissions be payable by sellers until the transactions are closed and funded in accordance with terms of the respective contracts. In the event that any one or more contemplated transactions @rFD-UV\:oon+ ORWOwoJ.,-aoVcoMpv OOOWII.wrajk 1 EXHIBIT a a "An are not closed for any reason whatsoever, then and in that event any commission will be deemed not to have been earned and shall not be due or payable by sellers. It is expressly understood and agreed by and between the parties that City shall not be obligated to pay any financial compensation to Summit in the form of real estate commissions. 1.03 SERVICES TO BE PERFORMED Summit agrees to provide, by way of inclusion but not limitation, the following services: (1) Meeting with and negotiating with owners/agents ofparcels of real estate identified for potential purchase by City; (2) Working with the City Attorney relative to preparation of contracts; (3) Assisting City with negotiating leases, if necessary; (4) Assisting City with negotiating "lease -back" arrangements for owners or tenants in existing facilities, if necessary; and (5) Any and all other real estate services necessary to effect satisfactory purchase of identified tracts by City. 1.04 REQUIRED REPORTS Summit agrees to provide City with either a written or oral report each month, at City's designation, detailing status of all activities associated with this Agreement. 1.05 TERMINATION This Agreement may be terminated for any of the following conditions: By City for reasons of its own, with or without cause, and not subject to the mutual consent of any other party, such written termination notice to be given to the other party not less than thirty (30) days prior to termination. 2. By mutual agreement and consent of both parties, such agreement to be in writing. 3. By City for failure by the other party to perform the services set forth herein in a satisfactory manner, such termination notice to be given in writing to the other party. 4. By satisfactory completion of all services and obligations described herein. 2 The termination of this Agreement shall extinguish all rights, duties, and obligations of City and the terminated party to fulfill contractual obligations. Termination under this section shall not relieve the terminated party of any obligations or liabilities which occurred prior to cancellation. 1.06 INDEPENDENT CONTRACTOR STATUS Summit is an independent contractor, and is not City's employee. Summit's employees or subcontractors are not City's employees. This Agreement does not create a partnership, employer- employee, or joint venture relationship. No party has authority to enter into contracts as agent for the other party. Summit and City agree to the following rights consistent with an independent contractor relationship: 1. Summit has the right to perform services for others during the term hereof. 2. Summit has the sole right to control and direct the means, manner and method by which services required by this Agreement will be performed. 3. Summit has the right to hire assistants as subcontractors, or to use employees to provide the services required by this Agreement. 4. Summit or its employees or subcontractors shall perform the services required hereunder, and City shall not hire, supervise, or pay any assistants to help Summit. 5. Neither Summit nor its employees or subcontractors shall receive training from City in skills necessary to perform services required by this Agreement. 6. City shall not require Summit or its employees or subcontractors to devote full time to performing the services required by this Agreement. 7. Neither Summit nor its employees or subcontractors are eligible to participate in any employee pension, health, vacation pay, sick pay, or other fringe benefit plan of City. 1.07 CONFIDENTIALITY Any programs, data, or other materials furnished by City for use by the parties in connection with services to be performed under this Agreement shall remain the sole property of City and shall be held in confidence by the parties as set forth hereunder. Both parties agree to hold all confidential information in the strictest confidence and not make any use thereof other than for the performance of this Agreement. Notwithstanding the foregoing, the parties recognize and understand that City is subject to the Texas Public Information Act and its duties run in accord therewith. 1.08 WARRANTIES Summit warrants that all services performed hereunder shall be performed consistent with generally prevailing professional or industry standards, and shall be performed in a professional and workmanlike manner. Summit shall re -perform any work not in compliance with this warranty. 1.09 INDEMNIFICATION Summit agrees to hold harmless, exempt, and indemnify City, its officers, agents, servants and employees, from and against all suits, actions, legal proceedings, demands, costs, expenses, losses, damages, attorneys fees, and claims, and any and all other costs and fees incident to any work done as a result of this Agreement arising as a result of actions by it and its agents and subcontractors during its performance pursuant to this Agreement. 1.10 ASSIGNMENT AND DELEGATION No party may assign any rights or delegate any duties under this Agreement without the other party's prior written approval. 1.11 LOCAL, STATE AND FEDERAL TAXES Summit shall pay all income taxes, and FICA (Social Security and Medicare taxes) incurred while performing services under this Agreement. City will not do the following: 1. Withhold FICA from Summit's payments or make FICA payments on its behalf; 2. Make state and/or federal unemployment compensation contributions on Summit's behalf; or 3. Withhold state or federal income tax from any of Summit's payments. 1.12 NOTICES All notices and other communications in connection with this Agreement shall be in writing and shall be considered given as follows: 1. When delivered personally to the recipient's address as stated in this Agreement; or 2. Three (3) days after being deposited in the United States mail, with postage prepaid to the recipient's address as stated in this Agreement. 4 Notice to Summit: Summit Commercial Industrial Properties, Inc. Attention: Jim Boles 18 Chisholm Trial Road Round Rock, TX 78681 Notice to City: City of Round Rock Attention: Jim Nuse, City Manager 221 East Main Street Round Rock, Texas 78664-5299 AND TO: City Attorney's Office Attention: Stephan L. Sheets, City Attorney 309 East Main Street Round Rock, Texas 78664 Nothing contained in this section shall be construed to restrict the transmission of routine communications between representatives of City and Summit. 1.13 APPLICABLE LAW The laws of the State of Texas shall govern this Agreement. Venue shall lie in Williamson County, Texas. 1.14 EXCLUSIVE AGREEMENT The terms and conditions of this Agreement constitute the entire agreement between the parties and supersede all previous communications, representations, and agreements, either written or oral, with respect to the subject matter hereof. No modifications of this Agreement will be binding on any party unless acknowledged in writing by the duly authorized representative for each party. This Agreement may be executed in multiple counterparts, which taken together shall be considered as one original. 1.15 DISPUTE RESOLUTION If a dispute arises under this Agreement, the parties agree to first try to resolve the dispute with the help of a mutually selected mediator. If the parties cannot agree on a mediator, City shall 5 select one mediator and Summit shall select one mediator and those two mediators shall agree upon a third mediator. Any costs and fees, other than attorney fees, associated with the mediation shall be shared equally by the parties. City and Summit hereby expressly agree that no claims or disputes between the parties arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9 USC Section 1-14) or any applicable state arbitration statute. 1.16 ATTORNEY FEES In the event that any lawsuit is brought by one party against the other party in connection with this. Agreement, the prevailing party shall be entitled to seek to recover its reasonable costs and reasonable attorney fees. 1.17 FORCE MAJEURE Notwithstanding any other provisions of this Agreement to the contrary, no failure, delay or default in performance of any obligation hereunder shall constitute an event of default or a breach of this Agreement, only to the extent that such failure to perform, delay or default arises out of causes beyond control and without the fault or negligence of the party otherwise chargeable with failure, delay or default; including but not limited to acts of God, acts of public enemy, civil war, insurrection, riots, fires, floods, explosion, theft, earthquakes, natural disasters or other casualties, strikes or other labor troubles, which in any way restrict the performance under this Agreement by any one or both of the parties. 1.18 SEVERABILITY The invalidity, illegality, or unenforceability of any provision of this Agreement or the occurrence of any event rendering any portion of provision of this Agreement void shall in no way affect the validity of enforceability of any other portion or provision of this Agreement. Any void provision shall be deemed severed from this Agreement, and the balance of this Agreement shall be construed and enforced as if this Agreement did not contain the particular portion of provision held to be void. The parties further agree to amend this Agreement to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this Article shall not prevent this entire Agreement from being void should a provision which is of the essence of this Agreement be determined void. 1.19 GENERAL AND MISCELLANEOUS The section numbers and headings contained herein are provided for convenience only and shall have no substantive effect on construction of this Agreement. 2 No document that purports to modify or supplement the printed text of this Agreement or any schedule, exhibit or addendum shall add to or vary the terms of this Agreement. All such proposed variations or additions (whether submitted by Summit or City) are objected to and deemed material unless properly agreed to in writing. Except for contractual obligations recited herein, no party shall be liable for any failure due to causes beyond its control. The failure of a party to exercise any right hereunder shall not operate as a waiver of said party's right to exercise such right or any other right in the future. Time is of the essence to this Agreement. City agrees to provide the other party with one fully executed original Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement on the dates indicated. CITY OF ROUND ROCK, TEXAS ATTEST: Nyle Maxwell, Mayor Date Signed: Christine R. Martinez, City Secretary Date Signed: SUMMIT COMMERCIAL INDUSTRIAL PROPERTIES, INC. By: ZLJ Jim Bol s, President Date Signed: / z • /5?. 03 7 DATE: January 2, 2004 SUBJECT: City Council Meeting - January 8, 2004 ITEM: 7.E.1. Consider a resolution authorizing the Mayor to execute a Consulting Agreement for Professional Services of Summit Commercial Industrial Properties for real estate consulting services. Resource: Jim Nuse, City Manager History: Parking continues to be a problem in our business districts. In order to acquire adequate space for parking, we are considering the purchase of suitable property. Funding: None - Financial compensation for real estate services provided by Summit shall be real estate commissions paid by the sellers of the parcels to Summit. Cost: N/A Source of Funds: N/A Outside Resources: N/A Impact/Benefit: This action will help provide long term parking accommodations. Public Comment: N/A Sponsor: N/A EXECUTED DOCUMENT FOLLOWS CITY OF ROUND ROCK CONSULTING AGREEMENT FOR PROFESSIONAL SERVICES OF SUMMIT COMMERCIAL INDUSTRIAL PROPERTIES, INC. THIS AGREEMENT for professional real estate services ("Agreement") is made by and between the City of Round Rock, a Texas home rule municipal corporation, whose offices are located at 221 East Main Street, Round Rock, Texas 78664-5299, ("City") and Summit Commercial Industrial Properties, Inc. ("Summit" or "Consultant"), whose offices are located at 18 Chisholm Trail Road, Round Rock, Texas 78681. RECITALS: WHEREAS, City desires to contract for professional real estate services relating to possible purchase of real property, and WHEREAS, the parties desire to enter into this Agreement to set forth in writing their respective rights, duties and obligations hereunder; NOW, THEREFORE, WITNESSETH: That for and in consideration of the mutual promises contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, it is mutually agreed between the parties as follows: 1.01 EFFECTIVE DATE, DURATION, AND TERM This Agreement shall be effective on the date this Agreement has been signed by each party hereto, and shall remain in full force and effect unless and until it expires by operation of the term indicated herein, or is terminated or extended as provided herein. The term of this Agreement shall be for twelve (12) months beginning from the effective date hereof. City reserves the right to review the progress of the subject matter of this Agreement at any time, and may elect to terminate with or without cause. 1.02 PAYMENT As consideration for the professional services to be performed by Summit, the parties expressly agree as follows: Financial compensation for real estate services provided by Summit shall be real estate commissions paid by the sellers of the parcels to Summit if, as and when closing and funding occurs. It is expressly understood and agreed by and between the parties that in no event shall commissions be payable by sellers until the transactions are closed and funded in accordance with terms of the respective contracts. In the event that any one or more contemplated transactions Map\::ODMA/WORIDOX/O:/wdox/CORR/ I/ t/0006001 I.WPD/jkg Z0y-01-O� yEr are not closed for any reason whatsoever, then and in that event any commission will be deemed not to have been earned and shall not be due or payable by sellers. It is expressly understood and agreed by and between the parties that City shall not be obligated to pay any financial compensation to Summit in the form of real estate commissions. 1.03 SERVICES TO BE PERFORMED Summit agrees to provide, by way of inclusion but not limitation, the following services: (1) Meeting with and negotiating with owners/agents of parcels of real estate identified for potential purchase by City; (2) Working with the City Attorney relative to preparation of contracts; (3) Assisting City with negotiating leases, if necessary; (4) Assisting City with negotiating "lease -back" arrangements for owners or tenants in existing facilities, if necessary; and (5) Any and all other real estate services necessary to effect satisfactory purchase of identified tracts by City. 1.04 REQUIRED REPORTS Summit agrees to provide City with either a written or oral report each month, at City's designation, detailing status of all activities associated with this Agreement. 1.05 TERMINATION This Agreement may be terminated for any of the following conditions: By City for reasons of its own, with or without cause, and not subject to the mutual consent of any other party, such written termination notice to be given to the other party not less than thirty (30) days prior to termination. 2. By mutual agreement and consent of both parties, such agreement to be in writing. 3. By City for failure by the other party to perform the services set forth herein in a satisfactory manner, such termination notice to be given in writing to the other party. 4. By satisfactory completion of all services and obligations described herein. 2 The termination of this Agreement shall extinguish all rights, duties, and obligations of City and the terminated party to fulfill contractual obligations. Termination under this section shall not relieve the terminated party of any obligations or liabilities which occurred prior to cancellation. 1.06 INDEPENDENT CONTRACTOR STATUS Summit is an independent contractor, and is not City's employee. Summit's employees or subcontractors are not City's employees. This Agreement does not create a partnership, employer- employee, or joint venture relationship. No party has authority to enter into contracts as agent for the other party. Summit and City agree to the following rights consistent with an independent contractor relationship: 1. Summit has the right to perform services for others during the term hereof. 2. Summit has the sole right to control and direct the means, manner and method by which services required by this Agreement will be performed. 3. Summit has the right to hire assistants as subcontractors, or to use employees to provide the services required by this Agreement. 4. Summit or its employees or subcontractors shall perform the services required hereunder, and City shall not hire, supervise, or pay any assistants to help Summit. 5. Neither Summit nor its employees or subcontractors shall receive training from City in skills necessary to perform services required by this Agreement. 6. City shall not require Summit or its employees or subcontractors to devote full time to performing the services required by this Agreement. 7. Neither Summit nor its employees or subcontractors are eligible to participate in any employee pension, health, vacation pay, sick pay, or other fringe benefit plan of City. 1.07 CONFIDENTIALITY Any programs, data, or other materials furnished by City for use by the parties in connection with services to be performed under this Agreement shall remain the sole property of City and shall be held in confidence by the parties as set forth hereunder. Both parties agree to hold all confidential information in the strictest confidence and not make any use thereof other than for the performance of this Agreement. Notwithstanding the foregoing, the parties recognize and understand that City is subject to the Texas Public Information Act and its duties run in accord therewith. 3 1.08 WARRANTIES Summit warrants that all services performed hereunder shall be performed consistent with generally prevailing professional or industry standards, and shall be performed in a professional and workmanlike manner. Summit shall re -perform any work not in compliance with this warranty. 1.09 INDEMNIFICATION Summit agrees to hold harmless, exempt, and indemnify City, its officers, agents, servants and employees, from and against all suits, actions, legal proceedings, demands, costs, expenses, losses, damages, attorneys fees, and claims, and any and all other costs and fees incident to any work done as a result of this Agreement arising as a result of actions by it and its agents and subcontractors during its performance pursuant to this Agreement. 1.10 ASSIGNMENT AND DELEGATION No party may assign any rights or delegate any duties under this Agreement without the other party's prior written approval. 1.11 LOCAL, STATE AND FEDERAL TAXES Summit shall pay all income taxes, and FICA (Social Security and Medicare taxes) incurred while performing services under this Agreement. City will not do the following: Withhold FICA from Summit's payments or make FICA payments on its behalf; 2. Make state and/or federal unemployment compensation contributions on Summit's behalf; or 3. Withhold state or federal income tax from any of Summit's payments. 1.12 NOTICES All notices and other communications in connection with this Agreement shall be in writing and shall be considered given as follows: When delivered personally to the recipient's address as stated in this Agreement; or 2. Three (3) days after being deposited in the United States mail, with postage prepaid to the recipient's address as stated in this Agreement. 4 Notice to Summit: Summit Commercial Industrial Properties, Inc. Attention: Jim Boles 18 Chisholm Trial Road Round Rock, TX 78681 Notice to City: City of Round Rock Attention: Jim Nuse, City Manager 221 East Main Street Round Rock, Texas 78664-5299 AND TO: City Attorney's Office Attention: Stephan L. Sheets, City Attorney 309 East Main Street Round Rock, Texas 78664 Nothing contained in this section shall be construed to restrict the transmission of routine communications between representatives of City and Summit. 1.13 APPLICABLE LAW The laws of the State of Texas shall govern this Agreement. Venue shall lie in Williamson County, Texas. 1.14 EXCLUSIVE AGREEMENT The terms and conditions of this Agreement constitute the entire agreement between the parties and supersede all previous communications, representations, and agreements, either written or oral, with respect to the subject matter hereof. No modifications of this Agreement will be binding on any party unless acknowledged in writing by the duly authorized representative for each party. This Agreement may be executed in multiple counterparts, which taken together shall be considered as one original. 1.15 DISPUTE RESOLUTION If a dispute arises under this Agreement, the parties agree to first try to resolve the dispute with the help of a mutually selected mediator. If the parties cannot agree on a mediator, City shall 5 select one mediator and Summit shall select one mediator and those two mediators shall agree upon a third mediator. Any costs and fees, other than attorney fees, associated with the mediation shall be shared equally by the parties. City and Summit hereby expressly agree that no claims or disputes between the parties arising out of or relating to this Agreement or a breach thereof shall be decided by any arbitration proceeding, including without limitation, any proceeding under the Federal Arbitration Act (9 USC Section 1-14) or any applicable state arbitration statute. 1.16 ATTORNEY FEES In the event that any lawsuit is brought by one party against the other party in connection with this Agreement, the prevailing party shall be entitled to seek to recover its reasonable costs and reasonable attorney fees. 1.17 FORCE MAJEURE Notwithstanding any other provisions of this Agreement to the contrary, no failure, delay or default in performance of any obligation hereunder shall constitute an event of default or a breach of this Agreement, only to the extent that such failure to perform, delay or default arises out of causes beyond control and without the fault or negligence of the party otherwise chargeable with failure, delay or default; including but not limited to acts of God, acts of public enemy, civil war, insurrection, riots, fires, floods, explosion, theft, earthquakes, natural disasters or other casualties, strikes or other labor troubles, which in any way restrict the performance under this Agreement by any one or both of the parties. 1.18 SEVERABILITY The invalidity, illegality, or unenforceability of any provision of this Agreement or the occurrence of any event rendering any portion of provision of this Agreement void shall in no way affect the validity of enforceability of any other portion or provision of this Agreement. Any void provision shall be deemed severed from this Agreement, and the balance of this Agreement shall be construed and enforced as if this Agreement did not contain the particular portion of provision held to be void. The parties further agree to amend this Agreement to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this Article shall not prevent this entire Agreement from being void should a provision which is of the essence of this Agreement be determined void. 1.19 GENERAL AND MISCELLANEOUS The section numbers and headings contained herein are provided for convenience only and shall have no substantive effect on construction of this Agreement. IZ No document that purports to modify or supplement the printed text of this Agreement or any schedule, exhibit or addendum shall add to or vary the terms of this Agreement. All such proposed variations or additions (whether submitted by Summit or City) are objected to and deemed material unless properly agreed to in writing. Except for contractual obligations recited herein, no party shall be liable for any failure due to causes beyond its control. The failure of a party to exercise any right hereunder shall not operate as a waiver of said party's right to exercise such right or any other right in the future. CI'. IM Time is of the essence to this Agreement. City agrees to provide the other party with one fully executed original Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement on the dates indicated. ATTEST: Christine R. Martinez, itySec etary Date Signed: % — ` SV SUMMIT COMMERCIAL INDUSTRIAL PROPERTIES, INC. By:� Jim Bolest President Date Signed: f .I>— r c`? 3 7