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R-06-05-25-11C1 - 5/25/2006RESOLUTION NO. R -06-05-25-11C1 WHEREAS, the City of Round Rock desires to retain professional consulting services for an Event Facilities Assessment, and WHEREAS, Economic Research Associates has submitted an Agreement for Professional Consulting Services for Event Facilities Assessment to provide said services, and WHEREAS, the City Council desires to enter into said agreement with Economic Research Associates, 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 an Agreement for Professional Consulting Services for Event Facilities Assessment with Economic Research Associates, a copy of same 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 25th day of May, 2006 AT E T: NY C CHRISTINE R. MARTINEZ, City Secrary @PFDesktop\ ODMA/WORLDOX/O:/WDOX/RESOLUTI/R60525C1.WPD/Sc L, ayor of Round Rock, Texas C1'1'Y OF ROUND ROCK AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES FOR EVENT FACILITIES ASSESSMENT WITH ECONOMICS RESEARCH ASSOCIATES (ERA) THIS AGREEMENT for professional consulting services relating to the City of Round Rock's potential construction and operation of an event facility (the "Agreement") is made by and between the City of Round Rock, a Texas home -rule municipal corporation, with offices located at 221 East Main Street, Round Rock, Texas 78664-5299, (the "City") and Economics Research Associates (ERA) (the "Consultant"), with offices located at 388 Market Street, Suite 1580, San Francisco, California 94111. RECITALS: WHEREAS, City has determined that there is a need for the delineated services; and WHEREAS, City desires to contract for such professional services; 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 until full and satisfactory completion of the work specified herein is achieved, but in no event later than one (1) year from the effective date of this Agreement. City reserves the right to review the Agreement at any time, including at the end of any deliverable or phase or task, and may elect to terminate the Agreement with or without cause or may elect to continue. 1.02 CONTRACT AMOUNT In consideration for the professional consulting services to be performed by Consultant, City agrees to pay Consultant a total sum not to exceed Seventy Thousand and No/100 Dollars ($70,000.00), in payment for Phase I services and the Phase I Scope of Work deliverables as 00099660/jkg EXHIBIT A delineated in Section 1.03. This amount does not include expenses which otherwise are reimbursable under this Agreement as delineated in Section 1.04. 1.03 SCOPE OF WORK ERA shall analyze alternative concepts for a major new facility that could be developed in Round Rock. ERA acknowledges its understanding that a variety of conversations have been taking place in Round Rock regarding various types of new facilities that could be developed to house events, thereby adding to the quality of life and advancing economic development goals of the City. At least five different concepts have been discussed, including: (1) Performing Arts Center - including one or more fixed -seat theaters; (2) Civic Center - housing wedding receptions, banquets, and other local community functions; (3) Convention Center - including significant flat floor exhibition hall space as well as breakout spaces for meetings; (4) Conference Center - focusing more on meetings and less on exhibit space; and (5) Special Events Center - composed primarily of a large flat floor flexible "box" that could be used for consumer shows, small sporting events, and exhibits. ERA acknowledges that one mulii-purpose facility might be able to meet more than one category of needs, and other blends of concepts between the five described categories could be envisioned. ERA shall analyze the tradeoffs between the listed possible facilities, and assist in working through a decision-making process when moving towards development. ERA shall assist the City and its broader community with selecting the most advantageous type of facility. ERA shall divide its consulting work into two phases, those being Phase 1 and proposed Phase II. Phase 1 requires that ERA conduct an overview level of research into all five of the listed concepts. Phase II, if and when contracted for by the City, would require ERA to conduct a more detailed analysis of a preferred concept. Phase I Scope of Work: Comparison of Five Listed Concepts (1) Initial Meetings. During an initial trip, the two senior ERA staff on the project will spend two to three days in Round Rock. ERA will meet with the City staff, as well as meet with other Round Rock community leaders and interest groups, as appropriate. ERA shall also spend sufficient time touring Round Rock and surrounding central Texas areas to gain a solid understanding of the environment. (2) Initial Feedback. During the initial trip, ERA staff shall discuss goals and expectations for facility performance. After return to ERA's offices, ERA shall draft a memorandum documenting ERA's understanding of the goals and objectives. After review by the City, this written statement will help focus and guide later research and analysis tasks. For each of the five concepts, as further refined with input from the City, at least an overview level of research and analysis shall be conducted. More detailed feasibility -level analysis may be conducted on a preferred concept once it has been selected. At the overview -level, the 2 mechanisms through which financial and economic impacts may be felt by the Round Rock community shall be understood, and the typical operating profiles of the different facilities shall be described. Quantification of many factors will likely remain in ranges or "high, medium, and low" characterizations for evaluation purposes. Tasks in this set include: (3) Indicators of Demand. Develop overview of indicators of demand for each facility (e.g., some facility concepts, such as performing arts and consumer shows, depend mostly on local market patronage and future growth, while others, such as conventions and tradeshows, depend on state and national trends in meeting groups). (4) Review of Competitors. Identify the locations and review the characteristics of facilities in the Austin/Round Rock metropolitan area that could create competition for each of the considered concepts. Much of this information shall be gathered in a second trip to the Round Rock area by ERA's research and analysis staff. This trip also affords another opportunity for ERA to meet with the City, and other community leaders who might not have been available during the first trip. Comparable Facilities Review. Identify and review the characteristics of comparable facilities in other areas that are worthy of being emulated. (6) Identify Typical Characteristics. For each facility concept, there are national norms and typical patterns of funding, development, management and operations. ERA shall describe the patterns for each. (5) (7) Describe Typical Financial Profile. Describe typical patterns of financial performance for each facility type, e.g., ability to cover operating costs with operating revenues, ability to contribute to debt service out of earned income. (8) Economic and Fiscal Impacts. Describe mechanisms through which the facility concept can impact the City fiscally and the community at large economically. Quantify these mechanisms at least to the extent that they can be ranked on each measure. Discuss Desirable Site Characteristics. The different facilities have different sources of market support, and thus will have differences in location and site requirements. In general terms, desirable locations and potentially available sites may be discussed. Armed with enough research into alternative facility types, ERA shall then compare all concepts side by side. Tasks leading to selection of an alternative preferred by the City and the Round Rock community include: (9) (10) Decision Matrix. ERA shall develop a decision matrix including criteria such as ability to pay operating costs, ability to contribute to debt service, service to community needs, ability to generate jobs and other positive economic impacts, potential for private partnering in development or operations, ability to attract philanthropic support, and other considerations that emerge from the goals and objectives discussions of the study. (11) Evaluate Concepts Using Goals and Objectives. ERA shall describe pros and cons of each facility concept, and compare and contrast the elements of the decision matrix in a narrative format. 3 (12) Specifically Characterize Financial Issues. Understanding that financial, fiscal, and economic impact criteria are especially important to project feasibility and long-term sustainability, ERA shall specifically highlight cost, funding, and economic impact issues in the evaluation. (13) Meet to Discuss Draft. As directed by the City, key ERA staff shall meet with steering committee, City staff, and/or Council to discuss alternatives. (14) Reporting. A draft report shall be written as the research, analysis, and comparisons are conducted and completed. The draft report shall be derived from all preliminary studies necessary to the performance of the Scope of Work, and shall be delivered to the City to be appropriately considered, clarified, and possibly revised. The draft report, and any final report derived therefrom and from performance of the entire Scope of Work, shall be a concise and thorough evaluation and shall provide the City with the necessary data and analysis to determine the appropriate course of action. The draft report shall be e-mailed to the client group in advance of the meeting delineated in Subsection (13) immediately above. Within two weeks of having received written comments from the client group, ERA shall prepare a final version of the written report per requirements delineated in Section 1.07 herein. (1 S) (Optional) Phase I Presentation. In many cases, a presentation and discussion of the draft report followed up by a final written product is sufficient to conclude this type of project. In others, it is helpful to bring consultants back for one or more presentations to other decision-making bodies or other community groups. At the direction of the City, ERA shall remain available to make one or more presentations of the results of the analysis to community leaders, decision-making bodies, and/or community groups. Phase I Scope of Work: Schedule The Phase I study is estimated by ERA to take six to eight weeks to conduct. Given that elements of this study will likely be conducted during the summer vacation season, adequate time for community involvement and collection of information may take longer. Between the Phase I and, if contracted for by the City, Phase II, there may be a hiatus for ERA as different community groups are presented with the results of the comparative analysis and consider their options. In some cases, consultant assistance with presentations or facilitation of this process can be helpful. Once a preferred concept is identified, ERA estimates that a more detailed feasibility study may take four to six weeks. (Optional) Phase II Anticipated Scope of Work: Analysis of the Preferred Concept The steps to take in preparing a more detailed feasibility study of major public assembly facilities vary significantly by the type of facility. Therefore, it is not possible for ERA to prepare a firm Scope of Work and fee for Phase 11 until the City and the broader Round Rock community has had an opportunity to work through Phase I with consulting assistance. However, ERA is able at this time to provide a delineation of the likely steps that would need to be taken in providing a detailed analysis of the preferred concept, should the City later contract with ERA to do so: 4 (1) Interview or survey a sample of potential end-users of the facility; (2) Interview management of competitive facilities in the Austin/Round Rock metropolitan area; (3) Conduct detailed case studies of comparable facilities in other areas that share one or more significant characteristics with the preferred Round Rock concept; (4) Identify sources of funding that are appropriate for the concept; (5) Explore the potential for partnering with private corporations, non-profit organizations, or other public agencies in developing or operating the facility; (6) Review possible sites in Round Rock, and estimate likely scenarios and costs for acquisition; (7) Recommend a business model for owning, operating, managing and marketing the facility; (8) Estimate the staff requirements to achieve operational goals; (9) Project a financial pro forma of operations, from development through stabilized occupancy; (10) Estimate facility development costs on a basic per -square -foot basis; (11) Project a financial pro forma for development; (12) Estimate the extent to which the facility will serve as a tourism draw, thereby serving as an economic engine for Round Rock; (13) Estimate the direct, indirect, and induced economic impacts in terms of jobs, gross economic output and personal income created by ongoing operations, using an input- output multiplier system such as the U.S. government's RIMS II system; (14) Estimate the net fiscal burden or benefit to the City of Round Rock; (15) Prepare a written report; and (16) Present results of the analysis to community leaders. (Optional) Phase II Scope of Work: Schedule and Fee Key ERA staff shall remain available to make presentations and participate in community meetings after the conclusion of the Phase I work. Once the range of concepts has been narrowed down to one, and building on the work completed in Phase I, a more detailed feasibility study of the type partially described in the Phase II Scope of Work outlined above may be completed and agreed to by both the City and ERA. Such detailed feasibility study is estimated by ERA to take four to six weeks, and may be completed for $20,000.00 to $40,000.00 dependent upon which concept is being analyzed and how deep it is necessary to go into the user survey task. 5 For purposes of this Agreement, Consultant has issued its Scope of Work for the assignments delineated herein, and such Scope of Work is recited herein. This Agreement shall evidence the entire understanding and agreement between the parties and shall supersede any prior proposals, correspondence or discussions. Consultant shall satisfactorily provide all services and deliverables described under the referenced Scope of Work within the contract term specified in Section 1.01. Consultant's undertakings shall be limited to performing services for the City and/or advising the City concerning those matters on which Consultant has been specifically engaged. Consultant shall perform its services in accordance with this Agreement and in accordance with the referenced Scope of Work. Consultant shall perform its services in a professional and workmanlike manner. Consultant shall not undertake work that is beyond the Scope of Work set forth in Section 1.03. However, either party may make written requests for changes to the Scope of Work. To be effective, a change to the Scope of Work must be negotiated and agreed to in all relevant details, and must be embodied in a valid Supplemental Agreement as described in Section 1.05 hereof. 1.04 PAYMENT FOR SERVICES; REEVIBURSABLE EXPENSES Payment for Services: In consideration for the consulting services to be performed by Consultant, the City agrees to pay Consultant the following "Payment for Services:" Fees for the listed deliverables in the total amount of Seventy Thousand and No/100 Dollars ($70,000.00) shall be paid by the City in the following manner: (1) Upon delivery of the memorandum required in Section 1.03 under "Phase I Scope of Work: Comparison of Five Listed Concepts," Subsection (2) entitled "Initial Feedback," the City shall be invoiced by Consultant and the City shall thereupon make an initial payment of twenty-five percent (25%) of the total "Payment for Services;" (2) Upon delivery of the Draft Report, the City shall be invoiced by Consultant and the City shall thereupon make a progress payment of thirty-seven and one-half percent (37-1/2%) of the total "Payment for Services;" (3) Upon delivery of the Final Report, the City shall be invoiced by Consultant and the City shall thereupon make a final payment of the remaining thirty-seven and one-half percent (37-1/2%) of the total "Payment for Services." Payment for Reimbursable Expenses: Reimbursable expenses authorized by the City shall be paid to Consultant at actual cost, upon Consultant properly invoicing for same and 6 providing documentation for same. Such reimbursable expenses for Phase I shall not exceed the total amount of Five Thousand and No/100 Dollars ($5,000.00). Not -to -Exceed Total Payment for Services: Unless subsequently changed by Supplemental Agreement to this Agreement, Consultant's total compensation for consulting services hereunder shall not exceed Seventy Thousand and No/100 Dollars ($70,000.00). This amount represents the absolute limit of the City's liability to Consultant hereunder unless same shall be changed by additional Supplemental Agreement, and the City shall pay, strictly within the confines of the not -to -exceed sum recited herein, Consultant's professional fees for work done on behalf of the City. Deductions: No deductions shall be made for Consultant's compensation on account of penalty, liquidated damages or other sums withheld from payments to Consultant. Additions: No additions shall be made to Consultant's compensation based upon project claims, whether paid by the City or denied. 1.05 SUPPLEMENTAL AGREEMENT The terms of this Agreement may be modified by written Supplemental Agreement hereto, duly authorized by City Council or by the City Manager, if the City determines that there has been a significant change in (1) the scope, complexity, or character of the services to be performed; or (2) the duration of the work. Any such Supplemental Agreement must be executed by both parties within the period specified as the term of this Agreement. Consultant shall not perform any work or incur any additional costs prior to the execution, by both parties, of such Supplemental Agreement. Consultant shall make no claim for extra work done or materials furnished unless and until there is full execution of any Supplemental Agreement, and the City shall not be responsible for actions by Consultant nor for any costs incurred by Consultant relating to additional work not directly authorized by Supplemental Agreement. 1.06 INVOICE REQUIREMENTS; TERMS OF PAYMENT Invoices: To receive payment following delivery of all deliverables, Consultant shall prepare and submit detailed progress invoices to the City, in accordance with the delineation contained herein, for services rendered. Such invoices for professional services shall track the referenced Scope of Work, and shall detail the services performed, along with documentation for each service performed. Payment to Consultant shall be made on the basis of the invoices submitted by Consultant and approved by the City. Such invoices shall conform to the schedule of services and costs in connection therewith. Should additional backup material be deliverables, Consultant shall comply promptly. necessary, Consultant shall make all records and the City for inspection and auditing purposes. 7 requested by the City relative to service In this regard, should the City determine it books relating to this Agreement available to Payment of Invoices: The City reserves the right to correct any error that may be discovered in any invoice that may have been paid to Consultant and to adjust same to meet the requirements of this Agreement. Following approval of an invoice, the City shall endeavor to pay Consultant promptly, but no later than the time period required under the Texas Prompt Payment Act described in Section 1.10 herein. Under no circumstances shall Consultant be entitled to receive interest on payments which are late because of a good faith dispute between Consultant and the City or because of amounts which the City has a right to withhold under this Agreement or state law. The City shall be responsible for any sales, gross receipts or similar taxes applicable to the services, but not for taxes based upon Consultant's net income. 1.07 REQUIRED DRAFT REPORT AND FINAL REPORT Consultant agrees to provide the City with a draft report and a detailed final written report, together with all information gathered and materials developed during the course of the project. Additionally, Consultant agrees to provide the City with any necessary oral presentations of such written reports, at the City's designation and at no additional cost to the City. Consultant agrees to provide the City with ten (10) additional bound copies of the final written report, with one (1) additional unbound copy being delivered which is suitable for the City to make additional copies at the sole election of the City. All copies of the written final report will be on 8-1/2" x 11" or 8-1/2" x 17" paper, will be primarily in black and white, will be spiral bound, and will contain color pages, images, photos, and diagrams as necessary. Consultant shall also deliver two (2) reproducible CDs to the City, all at no additional cost to the City. 1.08 MUTATION TO SCOPE OF WORK Consultant and the City agree that the scope of services to be performed is enumerated in Section 1.03 herein, and may not be changed without the express written agreement of the parties. Notwithstanding anything herein to the contrary, the parties agree that the City retains absolute discretion and authority for all funding decisions, such to be based solely on criteria accepted by the City which may be influenced by but not be dependent on Consultant's work. 1.09 NON -APPROPRIATION AND FISCAL FUNDING This Agreement is a commitment of the City's current revenues only. It is understood and agreed that the City shall have the right to terminate this Agreement at the end of any City fiscal year if the governing body of the City does not appropriate funds sufficient to purchase the services as determined by the City's budget for the fiscal year in question. The City may effect such termination by giving Consultant a written notice of termination at the end of its then current fiscal year. 8 1.10 PROMPT PAYMENT POLICY In accordance with Chapter 2251, V.T.C.A., Texas Government Code, payment to Consultant will be made within thirty (30) days of the day on which the City receives the performance, supplies, materials, equipment, and/or deliverables, or within thirty (30) days of the day on which the performance of services was complete, or within thirty (30) days of the day on which the City receives a correct invoice for the performance and/or deliverables or services, whichever is later. Consultant may charge a late fee of one percent (1%) for payments not made in accordance with this prompt payment policy; however, this policy does not apply to payments made by the City in the event: (1) There is a bona fide dispute between the City and Consultant concerning the supplies, materials, or equipment delivered or the services performed which causes the payment to be late; or (2) The terms of a federal contract, grant, regulation, or statute prevent the City from making a timely payment with federal funds; or (3) There is a bona fide dispute between the parties and subcontractors or between a subcontractor and its suppliers concerning supplies, materials, or equipment delivered or the services performed which causes the payment to be late; or (4) Invoices are not mailed to the City in strict accordance with instructions, if any, on the purchase order or the Agreement or other such contractual agreement. 1.11 TERMINATION; DEFAULT Termination: It is agreed and understood by Consultant that the City may terminate this Agreement for the convenience of the City, upon fifteen (15) days' written notice to Consultant, with the understanding that immediately upon receipt of said notice all work being performed under this Agreement shall cease. Consultant shall invoice the City for work satisfactorily completed and shall be compensated in accordance with the terms hereof for work accomplished prior to the receipt of said notice of termination. Consultant shall not be entitled to any lost or anticipated profits for work terminated under this Agreement. Unless otherwise specified in this Agreement, all data, information, and work product related to this project shall become the property of the City upon termination of this Agreement, and shall be promptly delivered to the City in a reasonably organized form without restriction on future use. Should the City subsequently contract with a new consultant for continuation of service on the project, Consultant shall cooperate in providing information. Termination of this Agreement shall extinguish all rights, duties, and obligations of the 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 termination. 9 Nothing contained in this section shall require the City to pay for any work which is unsatisfactory as determined by the City or which is not submitted in compliance with the terms of this Agreement. Default: The City may terminate this Agreement, in whole or in part, for default if the City provides Consultant with written notice of such default and Consultant fails to cure such default to the satisfaction of the City within ten (10) business days of receipt of such notice (or a greater time if permitted by the City). If Consultant defaults in performance of this Agreement and if the City terminates this Agreement for such default, then the City shall give consideration to the actual costs incurred by Consultant in performing the work to the date of default. The cost of the work that is useable to the City, the cost to the City of employing another firm to complete the useable work, and other factors will affect the value to the City of the work performed at the time of default. Consultant shall not be entitled to any lost or anticipated profits for work terminated for default hereunder. The termination of this Agreement for default shall extinguish all rights, duties, and obligations of the 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 termination. Nothing contained in this section shall require the City to pay for any work with is unsatisfactory as determined by the City, or which is not submitted in compliance with the terms of this Agreement. 1.12 INDEPENDENT CONTRACTOR STATUS Consultant is an independent contractor, and is not the City's employee. Consultant's employees or subcontractors are not the 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. Consultant and the City agree to the following rights consistent with an independent contractor relationship: (1) Consultant has the right to perform services for others during the term hereof. (2) Consultant has the sole right to control and direct the means, manner and method by which services required by this Agreement will be performed. Consultant has the right to hire assistants as subcontractors, or to use employees to provide the services required by this Agreement. (4) Consultant or its employees or subcontractors shall perform services required hereunder, and the City shall not hire, supervise, or pay assistants to help Consultant. (3) 10 (5) Neither Consultant nor its employees or subcontractors shall receive training from the City in skills necessary to perform services required by this Agreement. (6) City shall not require Consultant or its employees or subcontractors to devote full time to performing the services required by this Agreement. Neither Consultant nor its employees or subcontractors are eligible to participate in any employee pension, health, vacation pay, sick pay, or other fringe benefit plan of the City. (7) 1.13 NON -SOLICITATION Except as may be otherwise agreed in writing, during the term of this Agreement and for twelve (12) months thereafter, neither the City nor Consultant shall offer employment to or shall employ any person employed then or within the preceding twelve (12) months by the other or any affiliate of the other if such person was involved, directly or indirectly, in the performance of this Agreement. This provision shall not prohibit the hiring of any person who was solicited solely through a newspaper advertisement or other general solicitation. 1.14 CITY'S RESPONSIBILITES Full information: The City shall provide full information regarding project requirements. The City shall have the responsibility of providing Consultant with such documentation and information as is reasonably required to enable Consultant to provide the services called for. The City shall cause its employees and any third parties who are otherwise assisting, advising or representing the City to cooperate on a timely basis with Consultant in the provision of its services. Consultant may rely upon written information provided by the City and its employees and agents as accurate and complete. Consultant may rely upon any written directives provided by the City or its designated representative concerning provision of services. Required materials: Consultant's performance requires receipt of all requested information reasonably necessary to provision of services. The City shall furnish information which includes but is not limited to access to the property, preliminary information and/or data regarding the site and surrounding property (if applicable), pertinent correspondence with other local municipal and planning officials, previous market analyses or feasibility studies, and other pertinent information. Consultant agrees, within ten (10) days of the effective date of this Agreement, to provide the City with a comprehensive and detailed information request list. 1.15 CONFIDENTIALITY; AND MATERIALS OWNERSHIP Any and all programs, data, or other materials furnished by the City for use by Consultant in connection with services to be performed under this Agreement, and any and all data and information gathered by Consultant, shall be held in confidence by Consultant as set forth hereunder. Each party agrees to take reasonable measures to preserve the confidentiality of any proprietary or confidential information relative to this Agreement, and to not make any use 11 thereof other than for the performance of this Agreement, provided that no claim may be made for any failure to protect information that occurs more than three (3) years after the end of this Agreement. The parties recognize and understand that the City is subject to the Texas Public Information Act and its duties run in accordance therewith. All data relating specifically to the City's business and any other information which reasonably should be understood to be confidential to City is confidential information of City. Consultant's proprietary software, tools, methodologies, techniques, ideas, discoveries, inventions, know-how, and any other information which reasonably should be understood to be confidential to Consultant is confidential information of Consultant. The City's confidential information and Consultant's confidential information is collectively referred to as "Confidential Information." Each party shall use Confidential Information of the other party only in furtherance of the purposes of this Agreement and shall not disclose such Confidential Information to any third party without the other party's prior written consent, which consent shall not be unreasonably withheld. Each party agrees to take reasonable measures to protect the confidentiality of the other party's Confidential Information and to advise their employees of the confidential nature of the Confidential Information and of the prohibitions herein. Notwithstanding anything to the contrary contained herein, neither party shall be obligated to treat as confidential any information disclosed by the other party (the "Disclosing Party") which: (1) is rightfully known to the recipient prior to its disclosure by the Disclosing Party; (2) is released by the Disclosing Party to any other person or entity (including governmental agencies) without restriction; (3) is independently developed by the recipient without any reliance on Confidential Information; or (4) is or later becomes publicly available without violation of this Agreement or may be lawfully obtained by a party from any non-party. Notwithstanding the foregoing, either party will be entitled to disclose Confidential Information of the other to a third party as may be required by law, statute, rule or regulation, including subpoena or other similar form of process, provided that (without breaching any legal or regulatory requirement) the party to whom the request is made provides the other with prompt written notice and allows the other party to seek a restraining order or other appropriate relief. Subject to Consultant's confidentiality obligations under this Agreement, nothing herein shall preclude or limit Consultant from providing similar services for other clients. Neither the City nor Consultant will be liable to the other for inadvertent or accidental disclosure of Confidential Information if the disclosure occurs notwithstanding the party's exercise of the same level of protection and care that such party customarily uses in safeguarding its own proprietary and confidential information. Notwithstanding anything to the contrary in this Agreement, the City will own as its sole property all written materials created, developed, gathered, or originally prepared expressly for the City and delivered to the City under the terms of this Agreement (the "Deliverables"); and Consultant shall own any general skills, know-how, expertise, ideas, concepts, methods, 12 techniques, processes, software, or other similar information which may have been discovered, created, developed or derived by Consultant either prior to or as a result of its provision of services under this Agreement (other than the Deliverables). Consultant's working papers and Consultant's Confidential Information (as described herein) shall belong exclusively to Consultant. The City shall have a non-exclusive, non -transferable license to use Consultant's Confidential Information for the City's own internal use and only for the purposes for which they are delivered to the extent that they form part of the Deliverables. 1.16 WARRANTIES Consultant 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. Consultant shall re -perform any work not in compliance with this warranty. CONSULTANT DISCLAIMS ALL OTHER WARRANTIES EXPRESS OR IMPLIED INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 1.17 LIMITATION OF LIABILITY Should any of Consultant's services not conform to the requirements of this Agreement, then and in that event the City shall give written notification to Consultant; thereafter, (a) Consultant shall either promptly re -perform such services to the City's satisfaction at no additional charge, or (b) if such deficient services cannot be cured within the cure period set forth herein in Section 1.11, then this Agreement may be terminated for default. In no event will Consultant be liable for any loss, damage, cost or expense attributable to negligence, willful misconduct or misrepresentations by the City, its directors, employees or agents. In no event shall Consultant be liable to the City, by reason of any act or omission relating to the services provided under this Agreement (including the negligence of Consultant), whether a claim be in tort, contract or otherwise, (a) for any consequential, indirect, lost profit, punitive, special or similar damages relating to or arising from the services, or (b) in any event, in the aggregate, for any amount in excess of the total professional fees paid by the City to Consultant under this Agreement, except to the extent determined to have resulted from Consultant's gross negligence, willful misconduct or fraudulent acts relating to the service provided hereunder. 1.18 INDEMNIFICATION Consultant and the City each agree to indemnify, defend and hold harmless the other from and against any and all amounts payable under any judgment, verdict, court order or settlement for death or bodily injury or the damage to or loss or destruction of any real or tangible personal property to the extent arising out of the indemnitor's negligence in the performance of this Agreement. 13 Consultant agrees to indemnify, defend and hold harmless the City from and against any and all amounts payable under any judgment, verdict, court order or settlement for Third Party claims of infringement of any trade secrets, copyrights, trademarks or trade names alleged to have occurred and arising from the deliverables provided by Consultant to the City in connection with the performance of this Agreement. Should the City's use of such deliverables be determined to have infringed, Consultant may, at its option: (i) procure for the City the right to continue using such deliverables provided or (ii) replace or modify them to make their use non - infringing while yielding substantially equivalent results. If neither of the above options are or would be available on a basis that is commercially reasonable, then Consultant may terminate this Agreement, the City shall return such deliverables provided, and Consultant will refund to the City the fees paid for the deliverables provided. This infringement indemnity does not cover claims arising from the combination of such deliverables with products or services not provided by Consultant; the modification of such deliverables by any person other than Consultant; deliverables complying with or based upon (1) designs provided by or at the direction of the City or (2) specifications or other information provided by or at the direction of the City; or use of systems, materials or work performed in a manner not permitted hereunder or by another obligation of the City to Consultant. The indemnities in this section are contingent upon: (1) the indemnified party promptly notifying the indemnifying party in writing of any claim which gives rise to a claim for indemnification hereunder; (2) the indemnifying party being allowed to participate in the defense and settlement of such claim; and (3) the indemnified party cooperating with all reasonable requests of the indemnifying party (at the indemnifying party's expense) in defending or settling a claim. The indemnified party shall have the right, at its option and expense, to participate in the defense of any suit or proceeding through counsel of its own choosing. 1.19 ASSIGNMENT AND DELEGATION The parties each hereby bind themselves, their successors, assigns and legal representatives to each other with respect to the terms of this Agreement. Neither party may assign any rights or delegate any duties under this Agreement without the other party's prior written approval, which approval shall not be unreasonably withheld. 1.20 LOCAL, STATE AND FEDERAL TAXES Consultant shall pay all income taxes, and FICA (Social Security and Medicare taxes) incurred while performing services under this Agreement. The City will not do the following: (1) Withhold FICA from Consultant's payments or make FICA payments on its behalf; (2) Make state and/or federal unemployment compensation contributions on Consultant's behalf; or 14 (3) Withhold state or federal income tax from any of Consultant's payments. If requested, the City shall provide Consultant with a certificate from the Texas State Comptroller indicating that the City is a non-profit corporation and not subject to State of Texas Sales and Use Tax. 1.21 INSURANCE Insurance. Consultant, at Consultant's sole cost, shall have and maintain during the term of this Agreement professional liability insurance coverage in the minimum amount of One Million Dollars from a company authorized to do insurance business in Texas and otherwise acceptable to the City. Subconsultant Insurance. Without limiting any of the other obligations or liabilities of Consultant, Consultant shall require each subconsultant performing work under this Agreement to maintain during the term of the Agreement, at the subconsultant's own expense, the same stipulated minimum insurance required in the immediately preceding paragraph, including the required provisions and additional policy conditions as shown below. As an alternative, Consultant may include its subconsultants as additional insureds on its own coverages as prescribed under these requirements. Consultant's certificate of insurance shall note in such event that the subconsultants are included as additional insureds. Consultant shall obtain and monitor the certificates of insurance from each subconsultant in order to assure compliance with the insurance requirements. Consultant must retain the certificates of insurance for the duration of this Agreement, and shall have the responsibility of enforcing these insurance requirements among its subconsultants.,The City shall be entitled, upon request and without expense, to receive copies of these certificates of insurance. Insurance Policy Endorsements. Each insurance policy hereunder shall include the following conditions by endorsement to the policy: (1) Each policy shall require that thirty (30) days prior to the expiration, cancellation, non -renewal or any material change in coverage, a notice thereof shall be given to the City by certified mail to: City Manager, City of Round Rock 221 East Main Street Round Rock, Texas 78664 Consultant shall also notify the City, within twenty-four (24) hours of receipt, of any notices of expiration, cancellation, non -renewal, or material change in coverage it receives from its insurer. (2) Companies issuing the insurance policies shall have no recourse against the City for payment of any premiums or assessments for any deductibles which all are at the sole responsibility and risk of Consultant. 15 (3) Terms "the City" or "the City of Round Rock" shall include all authorities, boards, commissions, departments, and officers of the City and individual members, employees and agents in their official capacities, or while acting on behalf of the City of Round Rock. (4) The policy clause "Other Insurance" shall not apply to any insurance coverage currently held by the City, to any future coverage, or to the City's Self -Insured Retentions of whatever nature. (5) Consultant and the City mutually waive subrogation rights each may have against the other for loss or damage, to the extent same is covered by the proceeds of insurance. Cost of Insurance. The cost of all insurance required herein to be secured and maintained by Consultant shall be borne solely by Consultant, with certificates of insurance evidencing such minimum coverage in force to be filed with the City. 1.22 COMPLIANCE WITH LAWS, CHARTER AND ORDINANCES Consultant, its consultants, agents, employees and subcontractors shall use best efforts to comply with all applicable federal and state laws, the Charter and Ordinances of the City of Round Rock, as amended, and with all applicable rules and regulations promulgated by local, state and national boards, bureaus and agencies. Consultant shall further obtain all permits, licenses, trademarks, or copyrights required in the performance of the services contracted for herein, and same shall belong solely to the City at the expiration of the term of this Agreement. 1.23 FINANCIAL INTEREST PROHIBITED Consultant covenants and represents that Consultant, its officers, employees, agents, consultants and subcontractors will have no financial interest, direct or indirect, in the purchase or sale of any product, materials or equipment that will be recommended or required under this Agreement. 1.24 DESIGNATION OF REPRESENTATIVES The City hereby designates the following representative authorized to act in its behalf with regard to this Agreement: David Kautz Assistant City Manager/CFO City of Round Rock 221 East Main Street Round Rock, Texas 78664 Email: davidk@round-rock.tx.us 16 Consultant hereby designates the following representative authorized to act in its behalf with regard to this Agreement: Steven E. Spickard Senior Vice President Economics Research Associates 388 Market Street, Suite 1580 San Francisco, CA 94111 1.25 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 recipient's address as stated herein; 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. Notice to Consultant: Notice to City: City Manager, City of Round Rock 221 East Main Street Round Rock, TX 78664 AND TO: Stephan L. Sheets, City Attorney 309 East Main Street Round Rock, TX 78664 Nothing contained in this section shall be construed to restrict the transmission of routine communications between representatives of the City and Consultant. 1.26 APPLICABLE LAW; ENFORCEMENT AND VENUE This Agreement shall be enforceable in Round Rock, Texas, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall be governed by and construed in accordance with the laws and court decisions of Texas. 17 1.27 EXCLUSIVE AGREEMENT The terms and conditions of this Agreement, including exhibits, 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. The parties understand and expressly agree that, in the event of any conflict between the terms of this Agreement and any other writing, this Agreement shall prevail. No modifications of this Agreement will be binding on any of the parties unless acknowledged in writing by the duly authorized governing body or representative for each party. 1.28 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, the City shall select one mediator and Consultant 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. The City and Consultant 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. 1.29 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 the parties. Consultant shall not be deemed to be in default of its obligations to the City if its failure to perform or its substantial delay in performance is due to the City's failure to timely provide requested information, data, documentation, or other material necessary for Consultant to perform its obligations hereunder. 1.30 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 or 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 18 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. 1.31 STANDARD OF CARE Consultant represents that it is specially trained, experienced and competent to perform all of the services, responsibilities and duties specified herein and that such services, responsibilities and duties shall be performed, whether by Consultant or designated subconsultants, in a manner according to generally accepted business attraction practices. 1.32 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. No delay or omission by either party in exercising any right or power shall impair such right or power or be construed to be a waiver. A waiver by either party of any of the covenants to be performed by the other or any breach thereof shall not be construed to be a waiver of any succeeding breach or of any other covenant. No waiver of discharge shall be valid unless in writing and signed by an authorized representative of the party against whom such waiver or discharge is sought to be enforced. This Agreement may be executed in multiple counterparts, which taken together shall be considered one original. The City agrees to provide Consultant with one fully executed original. IN WITNESS WHEREOF, the parties have executed this Agreement on the dates hereafter indicated. City of Round Rock, Texas Attest: By: Christine R. Martinez, City Secretary Date Signed: Date Signed: Economics Research Associates By: Title: Date Signed: 19 For City, Approved as to Form: Stephan L. Sheets, City Attorney ECONOMICS RESEARCH ASSOCIATES STANDARD PROPOSAL ADDENDUM It is understood by the client that Economics Research Associates (ERA) can make no guarantees concerning the recommendations which will result from the proposed assignment, since these recommendations must be based upon facts discovered by ERA during the course of the study and those conditions existing as of the date of the report. To protect you and other clients, and to assure that the research results of ERA's work will continue to be accepted as objective and impartial by the business community, it is understood that our fee for the undertaking of this project is in no way dependent upon the specific conclusions reached or the nature of the advice given by us in our report to you. It is agreed by the client that the report is not to be used in conjunction with any public or private offering of debt or equity securities without prior written consent. It is further agreed that the client will indemnify ERA against any losses, claims, damages and liabilities under federal and state securities laws which may arise as a result of statements or omissions in public or private offerings of securities. It is agreed by the client that payment for the services of ERA is due upon receipt of progress invoices; and that full payment is due upon receipt of the completed report. In the event any invoice is not paid within 30 days after rendering of the invoice, then applicable provisions of Sections 1.06 and 1.10 of the Agreement shall govern. It is further agreed by the client that the report will be presented to third parties in its entirety and that no abstracting of the report will be made without first obtaining the permission of ERA, which permission shall not be unreasonably withheld. It is understood by ERA that the findings of this report are the proprietary property of the client and they will not be made available to any other organization or individual without the consent of the client, which consent shall not be unreasonably withheld. 00099691/jkg ROUND ROCK, TEXAS PURPOSE. PASSION. PROSPERITY May 18, 2006 Mr. Charlie Dromgoole, President Round Rock Chamber of Commerce 212 East Main Street Round Rock, Texas 78664 Dear Charlie, As discussed with the Economic Development Program Committee on April 10, 2006, the City proposes to enter into an agreement with Economics Research Associates (ERA) for the purpose of analyzing possible event facilities. We discussed a 50/50 split of the costs for the study with 1/2 being paid by the Round Rock Chamber of Commerce and '/2 paid by the City. The cost of the phase I consulting services including issuance of the final report will not exceed $75,000. A draft of the scope of services has been provided to you and a copy of the agreement will be provided to you upon approval by the City Council. Please acknowledge that the Round Rock Chamber of Commerce will pay to the City '/2 of the total cost of the study by signing below and returning a copy of this letter to me. Thanks for your help and participation in this important project. erely, Mayor Nyle Maxwell Mayor Pro -tem Alan McGraw Council Members Rufus Honeycutt Joe Clifford Carlos T. Salinas Scott Rhode David Kautz Assistant City Manager / CFO City of Round Rock cc: Jim Nuse, City Manager Joe Vining, RR Chamber of Commerce Round Rock Chamber of Commerce will reimburse the City of Round Rock for `/2 Ted Williamson o : total s><Q€-the.ERA event facilities study upon request by the City. City Manager James R. Nuse, P.E. Charlie Dromgoole 'Presi City Attorney Stephan L. Sheets CITY OF ROUND ROCK ADMINisTPATivE DEPT., 22I East Main Street • Round Rock, Texas 78664 Phone: 512.2 8.54oi • Fax: 512.218.7097 • www.ci.round-rock.tx.us Consulting Services for Convention Centers And Meeting Facilities ERA Economics Research Associates h 11 11 11 11 11 #/1 Offering Economic Planning Services for over 40 years ERA advises governments throughout the United States and abroad about urban planning economics and development policy, project feasibility, public-private partnerships, and community economic development. Since its founding, the firm has undertaken more than 15,000 engagements. Our clients include public agencies, private firms, and not-for-profit institutions. ERA understands the public sector's policy objectives, the private sector's economic imperatives, and the inherently political public decision making process. We serve all levels of government and collaborate with government staff, constituents, developers, officials, and other professional services firms. ERA's services to the public sector include: Market and Financial Feasibility Analysis Economic and Fiscal Impact Assessments Development Programming Financing and Implementation Strategies Park, Recreation and Open Space Planning Redevelopment Strategies Specific and General Plans Yerba Buena Center, San Francisco, CA Above Project Packaging and Developer Recruitment Public Facility Planning Valuation and Disposition Strategies Transportation and Joint Development Analysis Economic Development Plans Policy Analysis Tourism Strategies ERA Clients & Projects in the United States Adaptive Use Reuse Potential of Historic Structure Haslett Warehouse, San Francisco Northern Virginia Regional Commission, Virginia Community Revitalization Hollywood Entertainment District BID, City of Los Angeles, California F Street Retail Strategy, Washington DC Chinatown Business Survey & Development Strategy, San Francisco, California Historic & Cultural Facilities Evaluation and Planning for Historic Properties, Alabama Historical Commission Alaska Native Heritage Center ANHC, Inc., Anchorage Rose Center expansion feasibility, American Museum of Natural History, New York, New York Economic & Fiscal Impact Economic Impacts of '94 World Cup on Host Cities, World Cup '94 Organizing Committee Economic Impact of Port of San Diego, San Diego Unified Port District Sears World Headquarters Impact Study IDOT, Sears, & Village of Hoffman Estates, Illinois Atlantic Station TAD, Atlanta EIR/EIS Economic Studies San Francisco Bay Area Navy Base Closure & Reuse Impacts, US Navy Buffalo Inner Harbor Impacts Empire State Dev. Corporation, Buffalo, New York RSR Smelter Superfund Site Land Reuse, City of Dallas Quantification of benefits of smart growth strategies; brownfields, infill and building rehabilitation, US Environmental Protection Agency General Plans & Planning Policy City of Mesa Economic Development Plan, Mesa, Arizona Town of Nantucket Comprehensive Plan, Nantucket, Massachusetts Economic Development Strategy & Element, Chula Vista, California Housing Feasibility Studies Downtown Housing Market Study, Las Vegas Centre City Dev. Corp., Nevada Riverside Drive Housing Study City of Coral Springs, Forida Economic Criteria for Senior Housing, California Housing Finance Agency Military Facility Reuse Glenview Naval Air Station Reuse, Village of Glenview, Illinois Ogden Defense Depot, Ogden, Utah Comprehensive Economic Plan for South Central San Antonio, with Emphasis on the Brooks City Base Project, City of San Antonio Park, Recreation & Open Space Planning Analysis of Concession Lease Potential National Park Service Lake Lanier Islands Privatization Study, Lake Lanier Islands Development Authority, Georgia Mission Bay Park Master Plan, San Diego, California Public Assembly Facilities PGE Park, Portland, Oregon Moscone Convention Center Expansion, San Francisco, California Air Canada Centre, Toronto, Ontario Public Real Estate Advisory Services World Trade Center Site Redevelopment, Port Authority of New York & New Jersey Port of Los Angeles Commercial Futures, Port of Los Angeles, California Transit -Oriented Development Packaging, King County, Washington Hampton Convention Hotel and Crossroads Projects, Hampton, Virginia Regional Economic Development Southern Tier Economic Adjustment Strategy, State of New York San Diego/ Tijuana Border Zone Economic Development Plan, San Diego, California CANAMEX Economic Plan, States of Arizona, Nevada, Utah, Idaho, Montana Specific Plans Third Street Promenade, City of Santa Monica, California Governors Island Redevelopment Strategy, Regional Plan Association, New York, New York Tourism Development Arkansas Tourism Strategy State of Arkansas Statewide Tourism Master Plan, Massachusetts Office of Travel and Tourism "Pearls of LA" Tourism Strategy Los Angeles Community Redevelopment Agency Downtown Planning Downtown Portland Retail Strategy, Portland Development Commission and Association for Portland Progress Downtown Scottsdale Opportunities Study, Scottsdale, Arizona Downtown Comprehensive Economic Development Strategy, Los Angeles, California Transportation Planning Miami Intermodal Center, Florida Department of Transportation Statewide High Speed Rail Economic Impact Study, California Dept. of Transportation Impacts and Joint Development Opportunities, Federal Highway Administration Urban Redevelopment Massachusetts Turnpike Air Rights Analysis, Boston Redevelopment Authority, Massachusetts Yerba Buena Center, San Francisco Redevelopment Agency, California Downtown Oklahoma City Strategic Action Plan Waterfront Planning Inner -Harbor East Urban Renewal Area, Charles Center -Inner Harbor Management, Baltimore, Maryland Element Synergy Analysis and Attendance Projections, Navy Pier, Chicago, Illinois Queensway Bay Master Plan, Long Beach, California Office Locations Los Angeles 10990 Wilshire Boulevard, Suite 1500 Los Angeles, California 90024 310.477.9585 Fax 310.478.1950 San Francisco 388 Market Street, Suite 1580 San Francisco, California 94111 415.956.8152 Fax 415.956.5274 Washington DC 1101 Connecticut Ave, NW, Suite 750 Washington, DC 20036 202.496.8152 Fax 202.496.9877 Chicago 20 East Jackson Boulevard, Suite 1200 Chicago, Illinois 60604 312.427.3855 Fax 312.427.3660 San Diego 600 B Street, Suite 1470 San Diego, California 92101 619.237.1227 Fax 619 237.1221 New York 1180 Avenue of the Americas, Suite 1489 New York, New York 10036 212.899.5593 Fax 212 899.5594 London 25 Hosier Lane London, UK EC1A 9DW 44.(0)20.7651.0222 Fax 44.(0)20.7651.0223 www.econres.com ERA Economics Research Associates Feasibility and Implementation ERA is experienced in providing an array of services to all manner of convention, cultural, and other public assembly facilities. Our assignments range from small-scale community facilities to major urban projects. Each public facility has a special set of needs which must be met, yet each facility must address the basic issues of demand, attendance, sizing, management and operations, financial feasibility, and economic and fiscal impact. ERA has the experience and flexibility to provide innovative solutions to the particular needs of each project, and provide the sound advice essential for the development of a financially viable project Services: Market Support Physical Programming Financial Evaluation Funding Plans Economic and Fiscal Impact Public Presentation and Architect Selection Feasibility Studies Needs Assessments Attendance Forecasting Implementation Services Solicitation and Negotiation Management and Operations Evaluation FRONT: Moscone West, San Francisco, CA - right Palm Springs Convention Center, CA - top left Salt Lake South Town Expo Center, UT - bottom left TOP LEFT. Bayside Exposition and Conference Center, MA - top Polk County Convention Complex, IA - bottom Selected Clients: Convention and Conference Centers: Los Angeles Convention and Visitors Bureau, CA Flagstaff Convention Center Task Force, AZ City of San Francisco, CA Port of Portland, OR City of Park City, UT City of Mobile, AL Salt Lake City Convention and Visitors Bureau, UT Village of Tinley Park, IL The Greater Baltimore Committee, MD Bayside Expo Center, Boston, MA Las Vegas Visitors and Convention Authority, NV California State University, San Bernardino, CA City of Hampton, VA Performing Arts/Cultural Centers: City of Arvada, CO Alaska Native Heritage Commission Riverfront Development Corporation of Delaware Sierra Nevada College, CA City of San Diego, CA Town of Vail, CO Public Assembly: City of Round Rock, TX The Greater Des Moines Convention and Visitors Bureau, IA Ogden Entertainment Alexandria Chamber of Commerce, VA City of Louisville, KY Empire State Development Buffalo, NY Vail Associates. CO Economics Research Associates Office Locations 1.. is A figolv, woqii V01%1)011, ik7,1010,,..• rd. Sul to 1;1 A nFo-los. 41024 :111.477 '1151.15 Fox 110 471.1.14.110 Sai FranCiN,:i) 11.144's AlArk,-,11-111voi 1S*111 1 tirikkel, tit S ti 14111 1.1x 41F 4Nt: V.174 Washington 1 1 1.1Corini-ctortit A,;.1111.;'. NV :7141 WaNhington x2)11,41,16 • 4111111 Fox 2412 4c+.,11.1.77 No,Amrk 11!*4 Avt,niii• or 111.., !-11111...11.1%,1 • York, York 1411124. 2121.IL Lx 212 S'011..;5414 www.acanros.cam Chicago 2'02.0 E.z0,4 f.,4:1•:,4•00 El....901•....-.10G1 7;1.11 4., 12110 Chik,ap 1. 1111 •k 411144 427 11°17,5 F.;x 112 427.3440 Saul Diego 94,4 7.th Avcolic. Solt+. 214 Sar, (,114,1111.11-12,1+.1,1 id" "4-1 1-.70x. ',4-4 14414 ;25 41,:k -q) 1.:111 A 144 (< 7!•50 ph, .17%.• '44 (4. 1) z4 • 71151. <122:: f0 .14,135 Rood. Siii 1 N al;110,; 77.241•1 972 72H ,;1901 FAx 1172 2'.11,411911 ERA DATE: May 18, 2006 SUBJECT: City Council Meeting - May 25, 2006 ITEM: 11.C.1. Consider a resolution authorizing the Mayor to execute an agreement with Economic Research Associates for consulting services related to the feasibility of a City Event Center Facility. Department: Administration Staff Person: David Kautz, Assistant City Manager/CFO Justification: ERA will analyze alternative concepts for the possible development of a major new city facility to house special events. This proposal will include an analysis of possible options that will work towards advancing economic development goals of the community. Funding: Cost: Not to exceed $75,000.00 Source of funds: 'h Hotel Occupancy Tax Fund, 1/2 Round Rock Chamber of Commerce (Momentum Funding) Outside Resources: Economic Research Associates (ERA) Background Information: N/A Public Comment: N/A EXECUTED DOCUMENT FOLLOWS CITY OF ROUND ROCK AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES FOR EVENT FACILITIES ASSESSMENT WITH ECONOMICS RESEARCH ASSOCIATES (ERA) THIS AGREEMENT for professional consulting services relating to the City of Round Rock's potential construction and operation of an event facility (the "Agreement") is made by and between the City of Round Rock, a Texas home -rule municipal corporation, with offices located at 221 East Main Street, Round Rock, Texas 78664-5299, (the "City") and Economics Research Associates (ERA) (the "Consultant"), with offices located at 388 Market Street, Suite 1580, San Francisco, California 94111. RECITALS: WHEREAS, City has determined that there is a need for the delineated services; and WHEREAS, City desires to contract for such professional services; 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 until full and satisfactory completion of the work specified herein is achieved, but in no event later than one (1) year from the effective date of this Agreement. City reserves the right to review the Agreement at any time, including at the end of any deliverable or phase or task, and may elect to terminate the Agreement with or without cause or may elect to continue. 1.02 CONTRACT AMOUNT In consideration for the professional consulting services to be performed by Consultant, City agrees to pay Consultant a total sum not to exceed Seventy Thousand and No/100 Dollars ($70,000.00), in payment for Phase I services and the Phase I Scope of Work deliverables as k0 00-kb5-a5-Ji .j delineated in Section 1.03. This amount does not include expenses which otherwise are reimbursable under this Agreement as delineated in Section 1.04. 1.03 SCOPE OF WORK ERA shall analyze alternative concepts for a major new facility that could be developed in Round Rock. ERA acknowledges its understanding that a variety of conversations have been taking place in Round Rock regarding various types of new facilities that could be developed to house events, thereby adding to the quality of life and advancing economic development goals of the City. At least five different concepts have been discussed, including: Performing Arts Center - including one or more fixed -seat theaters; Civic Center - housing wedding receptions, banquets, and other local community functions; Convention Center - including significant flat floor exhibition hall space as well as breakout spaces for meetings; Conference Center - focusing more on meetings and less on exhibit space; and Special Events Center - composed primarily of a large flat -floor flexible "box" that could be used for consumer shows, small sporting events, and exhibits. ERA acknowledges that one multi purpose facility might be able to meet more than one category of needs, and other blends of concepts between the five described categories could be envisioned. ERA shall analyze the tradeoffs between the listed possible facilities, and assist in working through a decision-making process when moving towards development. ERA shall assist the City and its broader community with selecting the most advantageous type offacility. ERA shall divide its consulting work into two phases, those being Phase I and proposed Phase II. Phase I requires that ERA conduct an overview level of research into all five of the listed concepts. Phase II, if and when contracted for by the City, would require ERA to conduct a more detailed analysis of a preferred concept. Phase I Scope of Work: Comparison of Five Listed Concepts (1) Initial Meetings. During an initial trip, the two senior ERA staff on the project will spend two to three days in Round Rock. ERA will meet with the City staff, as well as meet with other Round Rock community leaders and interest groups, as appropriate. ERA shall also spend sufficient time touring Round Rock and surrounding central Texas areas to gain a solid understanding of the environment. (2) Initial Feedback. During the initial trip, ERA staff shall discuss goals and expectations for facility performance. After return to ERA 's offices, ERA shall draft a memorandum documenting ERA's understanding of the goals and objectives. After review by the City, this written statement will help focus and guide later research and analysis tasks. For each of the five concepts, as further refined with input from the City, at least an overview level of research and analysis shall be conducted. More detailed feasibility -level analysis may be conducted on a preferred concept once it has been selected. At the overview -level, the 2 mechanisms through which financial and economic impacts may be felt by the Round Rock community shall be understood, and the typical operating profiles of the d ferent facilities shall be described. Quantification of many factors will likely remain in ranges or "high, medium, and low" characterizations for evaluation purposes. Tasks in this set include: (3) Indicators of Demand. Develop overview of indicators of demand for each facility (e.g., some facility concepts, such as performing arts and consumer shows, depend mostly on local market patronage and future growth, while others, such as conventions and tradeshows, depend on state and national trends in meeting groups). (4) Review of Competitors. Identify the locations and review the characteristics of facilities in the Austin/Round Rock metropolitan area that could create competition for each of the considered concepts. Much of this information shall be gathered in a second trip to the Round Rock area by ERA 's research and analysis staff. This trip also affords another opportunity for ERA to meet with the City, and other community leaders who might not have been available during the first trip. (5) Comparable Facilities Review. Identify and review the characteristics of comparable facilities in other areas that are worthy of being emulated. (6) Identify Typical Characteristics. For each facility concept, there are national norms and typical patterns of funding, development, management and operations. ERA shall describe the patterns for each. (7) Describe Typical Financial Profile. Describe typical patterns of financial performance for each facility type, e.g., ability to cover operating costs with operating revenues, ability to contribute to debt service out of earned income. (8) Economic and Fiscal Impacts. Describe mechanisms through which the facility concept can impact the City fiscally and the community at large economically. Quantify these mechanisms at least to the extent that they can be ranked on each measure. (9) Discuss Desirable Site Characteristics. The different facilities have different sources of market support, and thus will have differences in location and site requirements. In general terms, desirable locations and potentially available sites may be discussed. Armed with enough research into alternative facility types, ERA shall then compare all concepts side by side. Tasks leading to selection of an alternative preferred by the City and the Round Rock community include: (10) Decision Matrix. ERA shall develop a decision matrix including criteria such as ability to pay operating costs, ability to contribute to debt service, service to community needs, ability to generate jobs and other positive economic impacts, potential for private partnering in development or operations, ability to attract philanthropic support, and other considerations that emerge from the goals and objectives discussions of the study. (11) Evaluate Concepts Using Goals and Objectives. ERA shall describe pros and cons of each facility concept, and compare and contrast the elements of the decision matrix in a narrative format. 3 (12) Specifically Characterize Financial Issues. Understanding that financial, fiscal, and economic impact criteria are especially important to project feasibility and long-term sustainability, ERA shall specifically highlight cost, funding, and economic impact issues in the evaluation. (13) Meet to Discuss Draft. As directed by the City, key ERA staff shall meet with steering committee, City staff and/or Council to discuss alternatives. (14) Reporting. A draft report shall be written as the research, analysis, and comparisons are conducted and completed. The draft report shall be derived from all preliminary studies necessary to the performance of the Scope of Work, and shall be delivered to the City to be appropriately considered, clarified, and possibly revised. The draft report, and any final report derived therefrom and from performance of the entire Scope of Work, shall be a concise and thorough evaluation and shall provide the City with the necessary data and analysis to determine the appropriate course of action. The draft report shall be e-mailed to the client group in advance of the meeting delineated in Subsection (13) immediately above. Within two weeks of having received written comments from the client group, ERA shall prepare a final version of the written report per requirements delineated in Section 1.07 herein. (15) (Optional) Phase I Presentation. In many cases, a presentation and discussion of the draft report followed up by a final written product is sufficient to conclude this type of project. In others, it is helpful to bring consultants back for one or more presentations to other decision-making bodies or other community groups. At the direction of the City, ERA shall remain available to make one or more presentations of the results of the analysis to community leaders, decision-making bodies, and/or community groups. Phase I Scope of Work: Schedule The Phase I study is estimated by ERA to take six to eight weeks to conduct. Given that elements of this study will likely be conducted during the summer vacation season, adequate time for community involvement and collection of information may take longer. Between the Phase I and, if contracted for by the City, Phase II, there may be a hiatus for ERA as different community groups are presented with the results of the comparative analysis and consider their options. In some cases, consultant assistance with presentations or facilitation of this process can be helpful. Once a preferred concept is identified, ERA estimates that a more detailed feasibility study may take four to six weeks. (Optional) Phase II Anticipated Scope of Work: Analysis of the Preferred Concept The steps to take in preparing a more detailed feasibility study of major public assembly facilities vary significantly by the type of facility. Therefore, it is not possible for ERA to prepare a firm Scope of Work and fee for Phase II until the City and the broader Round Rock community has had an opportunity to work through Phase I with consulting assistance. However, ERA is able at this time to provide a delineation of the likely steps that would need to be taken in providing a detailed analysis of the preferred concept, should the City later contract with ERA to do so: 4 (1) Interview or survey a sample of potential end-users of the facility; (2) Interview management of competitive facilities in the Austin/Round Rock metropolitan area; (3) Conduct detailed case studies of comparable facilities in other areas that share one or more significant characteristics with the preferred Round Rock concept; (4) Identify sources of funding that are appropriate for the concept; (5) Explore the potential for partnering with private corporations, non-profit organizations, or other public agencies in developing or operating the facility; (6) Review possible sites in Round Rock, and estimate likely scenarios and costs for acquisition; (7) Recommend a business model for owning, operating, managing and marketing the facility; (8) Estimate the staff requirements to achieve operational goals; (9) Project a financial pro forma of operations, from development through stabilized occupancy; (10) Estimate facility development costs on a basic per -square -foot basis; (11) Project a financial pro forma for development; (12) Estimate the extent to which the facility will serve as a tourism draw, thereby serving as an economic engine for Round Rock; (13) Estimate the direct, indirect, and induced economic impacts in terms of jobs, gross economic output and personal income created by ongoing operations, using an input- output multiplier system such as the U.S. government 's RIMS II system; (14) Estimate the net fiscal burden or benefit to the City of Round Rock; (15) Prepare a written report; and (16) Present results of the analysis to community leaders. (Optional) Phase II Scope of Work: Schedule and Fee Key ERA staff shall remain available to make presentations and participate in community meetings after the conclusion of the Phase I work. Once the range of concepts has been narrowed down to one, and building on the work completed in Phase I, a more detailed feasibility study of the type partially described in the Phase II Scope of Work outlined above may be completed and agreed to by both the City and ERA. Such detailed feasibility study is estimated by ERA to take four to six weeks, and may be completed for $20, 000.00 to $40, 000.00 dependent upon which concept is being analyzed and how deep it is necessary to go into the user survey task. 5 For purposes of this Agreement, Consultant has issued its Scope of Work for the assignments delineated herein, and such Scope of Work is recited herein. This Agreement shall evidence the entire understanding and agreement between the parties and shall supersede any prior proposals, correspondence or discussions. Consultant shall satisfactorily provide all services and deliverables described under the referenced Scope of Work within the contract term specified in Section 1.01. Consultant's undertakings shall be limited to performing services for the City and/or advising the City concerning those matters on which Consultant has been specifically engaged. Consultant shall perform its services in accordance with this Agreement and in accordance with the referenced Scope of Work. Consultant shall perform its services in a professional and workmanlike manner. Consultant shall not undertake work that is beyond the Scope of Work set forth in Section 1.03. However, either party may make written requests for changes to the Scope of Work. To be effective, a change to the Scope of Work must be negotiated and agreed to in all relevant details, and must be embodied in a valid Supplemental Agreement as described in Section 1.05 hereof. 1.04 PAYMENT FOR SERVICES; REIMBURSABLE EXPENSES Payment for Services: In consideration for the consulting services to be performed by Consultant, the City agrees to pay Consultant the following "Payment for Services:" Fees for the listed deliverables in the total amount of Seventy Thousand and No/100 Dollars ($70,000.00) shall be paid by the City in the following manner: (1) Upon delivery of the memorandum required in Section 1.03 under "Phase I Scope of Work: Comparison of Five Listed Concepts," Subsection (2) entitled "Initial Feedback," the City shall be invoiced by Consultant and the City shall thereupon make an initial payment of twenty-five percent (25%) of the total "Payment for Services;" (2) Upon delivery of the Draft Report, the City shall be invoiced by Consultant and the City shall thereupon make a progress payment of thirty-seven and one-half percent (37-1/2%) of the total "Payment for Services;" (3) Upon delivery of the Final Report, the City shall be invoiced by Consultant and the City shall thereupon make a final payment of the remaining thirty-seven and one-half percent (37-1/2%) of the total "Payment for Services." Payment for Reimbursable Expenses: Reimbursable expenses authorized by the City shall be paid to Consultant at actual cost, upon Consultant properly invoicing for same and 6 providing documentation for same. Such reimbursable expenses for Phase I shall not exceed the total amount of Five Thousand and No/100 Dollars ($5,000.00). Not -to -Exceed Total Payment for Services: Unless subsequently changed by Supplemental Agreement to this Agreement, Consultant's total compensation for consulting services hereunder shall not exceed Seventy Thousand and No/100 Dollars ($70,000.00). This amount represents the absolute limit of the City's liability to Consultant hereunder unless same shall be changed by additional Supplemental Agreement, and the City shall pay, strictly within the confines of the not -to -exceed sum recited herein, Consultant's professional fees for work done on behalf of the City. Deductions: No deductions shall be made for Consultant's compensation on account of penalty, liquidated damages or other sums withheld from payments to Consultant. Additions: No additions shall be made to Consultant's compensation based upon project claims, whether paid by the City or denied. 1.05 SUPPLEMENTAL AGREEMENT The terms of this Agreement may be modified by written Supplemental Agreement hereto, duly authorized by City Council or by the City Manager, if the City determines that there has been a significant change in (1) the scope, complexity, or character of the services to be performed; or (2) the duration of the work. Any such Supplemental Agreement must be executed by both parties within the period specified as the term of this Agreement. Consultant shall not perform any work or incur any additional costs prior to the execution, by both parties, of such Supplemental Agreement. Consultant shall make no claim for extra work done or materials furnished unless and until there is full execution of any Supplemental Agreement, and the City shall not be responsible for actions by Consultant nor for any costs incurred by Consultant relating to additional work not directly authorized by Supplemental Agreement. 1.06 INVOICE REQUIREMENTS; TERMS OF PAYMENT Invoices: To receive payment following delivery of all deliverables, Consultant shall prepare and submit detailed progress invoices to the City, in accordance with the delineation contained herein, for services rendered. Such invoices for professional services shall track the referenced Scope of Work, and shall detail the services performed, along with documentation for each service performed. Payment to Consultant shall be made on the basis of the invoices submitted by Consultant and approved by the City. Such invoices shall conform to the schedule of services and costs in connection therewith. Should additional backup material be requested by the City relative to service deliverables, Consultant shall comply promptly. In this regard, should the City determine it necessary, Consultant shall make all records and books relating to this Agreement available to the City for inspection and auditing purposes. 7 Payment of Invoices: The City reserves the right to correct any error that may be discovered in any invoice that may have been paid to Consultant and to adjust same to meet the requirements of this Agreement. Following approval of an invoice, the City shall endeavor to pay Consultant promptly, but no later than the time period required under the Texas Prompt Payment Act described in Section 1.10 herein. Under no circumstances shall Consultant be entitled to receive interest on payments which are late because of a good faith dispute between Consultant and the City or because of amounts which the City has a right to withhold under this Agreement or state law. The City shall be responsible for any sales, gross receipts or similar taxes applicable to the services, but not for taxes based upon Consultant's net income. 1.07 REQUIRED DRAFT REPORT AND FINAL REPORT Consultant agrees to provide the City with a draft report and a detailed final written report, together with all information gathered and materials developed during the course of the project. Additionally, Consultant agrees to provide the City with any necessary oral presentations of such written reports, at the City's designation and at no additional cost to the City. Consultant agrees to provide the City with ten (10) additional bound copies of the final written report, with one (1) additional unbound copy being delivered which is suitable for the City to make additional copies at the sole election of the City. All copies of the written final report will be on 8-1/2" x 11" or 8-1/2" x 17" paper, will be primarily in black and white, will be spiral bound, and will contain color pages, images, photos, and diagrams as necessary. Consultant shall also deliver two (2) reproducible CDs to the City, all at no additional cost to the City. 1.08 LIMITATION TO SCOPE OF WORK Consultant and the City agree that the scope of services to be performed is enumerated in Section 1.03 herein, and may not be changed without the express written agreement of the parties. Notwithstanding anything herein to the contrary, the parties agree that the City retains absolute discretion and authority for all funding decisions, such to be based solely on criteria accepted by the City which may be influenced by but not be dependent on Consultant's work. 1.09 NON -APPROPRIATION AND FISCAL FUNDING This Agreement is a commitment of the City's current revenues only. It is understood and agreed that the City shall have the right to terminate this Agreement at the end of any City fiscal year if the governing body of the City does not appropriate funds sufficient to purchase the services as determined by the City's budget for the fiscal year in question. The City may effect such termination by giving Consultant a written notice of termination at the end of its then current fiscal year. 8 1.10 PROMPT PAYMENT POLICY In accordance with Chapter 2251, V.T.C.A., Texas Government Code, payment to Consultant will be made within thirty (30) days of the day on which the City receives the performance, supplies, materials, equipment, and/or deliverables, or within thirty (30) days of the day on which the performance of services was complete, or within thirty (30) days of the day on which the City receives a correct invoice for the performance and/or deliverables or services, whichever is later. Consultant may charge a late fee of one percent (1 %) for payments not made in accordance with this prompt payment policy; however, this policy does not apply to payments made by the City in the event: (1) There is a bona fide dispute between the City and Consultant concerning the supplies, materials, or equipment delivered or the services performed which causes the payment to be late; or (2) The terms of a federal contract, grant, regulation, or statute prevent the City from making a timely payment with federal funds; or There is a bona fide dispute between the parties and subcontractors or between a subcontractor and its suppliers concerning supplies, materials, or equipment delivered or the services performed which causes the payment to be late; or (4) Invoices are not mailed to the City in strict accordance with instructions, if any, on the purchase order or the Agreement or other such contractual agreement. (3) 1.11 TERMINATION; DEFAULT Termination: It is agreed and understood by Consultant that the City may terminate this Agreement for the convenience of the City, upon fifteen (15) days' written notice to Consultant, with the understanding that immediately upon receipt of said notice all work being performed under this Agreement shall cease. Consultant shall invoice the City for work satisfactorily completed and shall be compensated in accordance with the terms hereof for work accomplished prior to the receipt of said notice of termination. Consultant shall not be entitled to any lost or anticipated profits for work terminated under this Agreement. Unless otherwise specified in this Agreement, all data, information, and work product related to this project shall become the property of the City upon termination of this Agreement, and shall be promptly delivered to the City in a reasonably organized form without restriction on future use. Should the City subsequently contract with a new consultant for continuation of service on the project, Consultant shall cooperate in providing information. Termination of this Agreement shall extinguish all rights, duties, and obligations of the 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 termination. 9 Nothing contained in this section shall require the City to pay for any work which is unsatisfactory as determined by the City or which is not submitted in compliance with the terms of this Agreement. Default: The City may terminate this Agreement, in whole or in part, for default if the City provides Consultant with written notice of such default and Consultant fails to cure such default to the satisfaction of the City within ten (10) business days of receipt of such notice (or a greater time if permitted by the City). If Consultant defaults in performance of this Agreement and if the City terminates this Agreement for such default, then the City shall give consideration to the actual costs incurred by Consultant in performing the work to the date of default. The cost of the work that is useable to the City, the cost to the City of employing another firm to complete the useable work, and other factors will affect the value to the City of the work performed at the time of default. Consultant shall not be entitled to any lost or anticipated profits for work terminated for default hereunder. The termination of this Agreement for default shall extinguish all rights, duties, and obligations of the 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 termination. Nothing contained in this section shall require the City to pay for any work with is unsatisfactory as determined by the City, or which is not submitted in compliance with the terms of this Agreement. 1.12 INDEPENDENT CONTRACTOR STATUS Consultant is an independent contractor, and is not the City's employee. Consultant's employees or subcontractors are not the 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. Consultant and the City agree to the following rights consistent with an independent contractor relationship: (1) Consultant has the right to perform services for others during the term hereof (2) Consultant has the sole right to control and direct the means, manner and method by which services required by this Agreement will be performed. Consultant has the right to hire assistants as subcontractors, or to use employees to provide the services required by this Agreement. (4) Consultant or its employees or subcontractors shall perform services required hereunder, and the City shall not hire, supervise, or pay assistants to help Consultant. (3) 10 (5) Neither Consultant nor its employees or subcontractors shall receive training from the City in skills necessary to perform services required by this Agreement. (6) City shall not require Consultant or its employees or subcontractors to devote full time to performing the services required by this Agreement. Neither Consultant nor its employees or subcontractors are eligible to participate in any employee pension, health, vacation pay, sick pay, or other fringe benefit plan of the City. (7) 1.13 NON -SOLICITATION Except as may be otherwise agreed in writing, during the term of this Agreement and for twelve (12) months thereafter, neither the City nor Consultant shall offer employment to or shall employ any person employed then or within the preceding twelve (12) months by the other or any affiliate of the other if such person was involved, directly or indirectly, in the performance of this Agreement. This provision shall not prohibit the hiring of any person who was solicited solely through a newspaper advertisement or other general solicitation. 1.14 CITY'S RESPONSIBILITIES Full information: The City shall provide full information regarding project requirements. The City shall have the responsibility of providing Consultant with such documentation and information as is reasonably required to enable Consultant to provide the services called for. The City shall cause its employees and any third parties who are otherwise assisting, advising or representing the City to cooperate on a timely basis with Consultant in the provision of its services. Consultant may rely upon written information provided by the City and its employees and agents as accurate and complete. Consultant may rely upon any written directives provided by the City or its designated representative concerning provision of services. Required materials: Consultant's performance requires receipt of all requested information reasonably necessary to provision of services. The City shall furnish information which includes but is not limited to access to the property, preliminary information and/or data regarding the site and surrounding property (if applicable), pertinent correspondence with other local municipal and planning officials, previous market analyses or feasibility studies, and other pertinent information. Consultant agrees, within ten (10) days of the effective date of this Agreement, to provide the City with a comprehensive and detailed information request list. 1.15 CONFIDENTIALITY; AND MATERIALS OWNERSHIP Any and all programs, data, or other materials furnished by the City for use by Consultant in connection with services to be performed under this Agreement, and any and all data and information gathered by Consultant, shall be held in confidence by Consultant as set forth hereunder. Each party agrees to take reasonable measures to preserve the confidentiality of any proprietary or confidential information relative to this Agreement, and to not make any use 11 thereof other than for the performance of this Agreement, provided that no claim may be made for any failure to protect information that occurs more than three (3) years after the end of this Agreement. The parties recognize and understand that the City is subject to the Texas Public Information Act and its duties run in accordance therewith. All data relating specifically to the City's business and any other information which reasonably should be understood to be confidential to City is confidential information of City. Consultant's proprietary software, tools, methodologies, techniques, ideas, discoveries, inventions, know-how, and any other information which reasonably should be understood to be confidential to Consultant is confidential information of Consultant. The City's confidential information and Consultant's confidential information is collectively referred to as "Confidential Information." Each party shall use Confidential Information of the other party only in furtherance of the purposes of this Agreement and shall not disclose such Confidential Information to any third party without the other party's prior written consent, which consent shall not be unreasonably withheld. Each party agrees to take reasonable measures to protect the confidentiality of the other party's Confidential Information and to advise their employees of the confidential nature of the Confidential Information and of the prohibitions herein. Notwithstanding anything to the contrary contained herein, neither party shall be obligated to treat as confidential any information disclosed by the other party (the "Disclosing Party") which: (1) is rightfully known to the recipient prior to its disclosure by the Disclosing Party; (2) is released by the Disclosing Party to any other person or entity (including governmental agencies) without restriction; (3) is independently developed by the recipient without any reliance on Confidential Information; or (4) is or later becomes publicly available without violation of this Agreement or may be lawfully obtained by a party from any non-party. Notwithstanding the foregoing, either party will be entitled to disclose Confidential Information of the other to a third party as may be required by law, statute, rule or regulation, including subpoena or other similar form of process, provided that (without breaching any legal or regulatory requirement) the party to whom the request is made provides the other with prompt written notice and allows the other party to seek a restraining order or other appropriate relief. Subject to Consultant's confidentiality obligations under this Agreement, nothing herein shall preclude or limit Consultant from providing similar services for other clients. Neither the City nor Consultant will be liable to the other for inadvertent or accidental disclosure of Confidential Information if the disclosure occurs notwithstanding the party's exercise of the same level of protection and care that such party customarily uses in safeguarding its own proprietary and confidential information. Notwithstanding anything to the contrary in this Agreement, the City will own as its sole property all written materials created, developed, gathered, or originally prepared expressly for the City and delivered to the City under the terms of this Agreement (the "Deliverables"); and Consultant shall own any general skills, know-how, expertise, ideas, concepts, methods, 12 techniques, processes, software, or other similar information which may have been discovered, created, developed or derived by Consultant either prior to or as a result of its provision of services under this Agreement (other than the Deliverables). Consultant's working papers and Consultant's Confidential Information (as described herein) shall belong exclusively to Consultant. The City shall have a non-exclusive, non -transferable license to use Consultant's Confidential Information for the City's own internal use and only for the purposes for which they are delivered to the extent that they form part of the Deliverables. 1.16 WARRANTIES Consultant 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. Consultant shall re -perform any work not in compliance with this warranty. CONSULTANT DISCLAIMS ALL OTHER WARRANTIES EXPRESS OR IMPLIED INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 1.17 LIMITATION OF LIABILITY Should any of Consultant's services not conform to the requirements of this Agreement, then and in that event the City shall give written notification to Consultant; thereafter, (a) Consultant shall either promptly re -perform such services to the City's satisfaction at no additional charge, or (b) if such deficient services cannot be cured within the cure period set forth herein in Section 1.11, then this Agreement may be terminated for default. In no event will Consultant be liable for any loss, damage, cost or expense attributable to negligence, willful misconduct or misrepresentations by the City, its directors, employees or agents. In no event shall Consultant be liable to the City, by reason of any act or omission relating to the services provided under this Agreement (including the negligence of Consultant), whether a claim be in tort, contract or otherwise, (a) for any consequential, indirect, lost profit, punitive, special or similar damages relating to or arising from the services, or (b) in any event, in the aggregate, for any amount in excess of the total professional fees paid by the City to Consultant under this Agreement, except to the extent determined to have resulted from Consultant's gross negligence, willful misconduct or fraudulent acts relating to the service provided hereunder. 1.18 INDEMNIFICATION Consultant and the City each agree to indemnify, defend and hold harmless the other from and against any and all amounts payable under any judgment, verdict, court order or settlement for death or bodily injury or the damage to or loss or destruction of any real or tangible personal property to the extent arising out of the indemnitor's negligence in the performance of this Agreement. 13 Consultant agrees to indemnify, defend and hold harmless the City from and against any and all amounts payable under any judgment, verdict, court order or settlement for Third Party claims of infringement of any trade secrets, copyrights, trademarks or trade names alleged to have occurred and arising from the deliverables provided by Consultant to the City in connection with the performance of this Agreement. Should the City's use of such deliverables be determined to have infringed, Consultant may, at its option: (i) procure for the City the right to continue using such deliverables provided or (ii) replace or modify them to make their use non - infringing while yielding substantially equivalent results. If neither of the above options are or would be available on a basis that is commercially reasonable, then Consultant may terminate this Agreement, the City shall return such deliverables provided, and Consultant will refund to the City the fees paid for the deliverables provided. This infringement indemnity does not cover claims arising from the combination of such deliverables with products or services not provided by Consultant; the modification of such deliverables by any person other than Consultant; deliverables complying with or based upon (1) designs provided by or at the direction of the City or (2) specifications or other information provided by or at the direction of the City; or use of systems, materials or work performed in a manner not permitted hereunder or by another obligation of the City to Consultant. The indemnities in this section are contingent upon: (1) the indemnified party promptly notifying the indemnifying party in writing of any claim which gives rise to a claim for indemnification hereunder; (2) the indemnifying party being allowed to participate in the defense and settlement of such claim; and (3) the indemnified party cooperating with all reasonable requests of the indemnifying party (at the indemnifying party's expense) in defending or settling a claim. The indemnified party shall have the right, at its option and expense, to participate in the defense of any suit or proceeding through counsel of its own choosing. 1.19 ASSIGNMENT AND DELEGATION The parties each hereby bind themselves, their successors, assigns and legal representatives to each other with respect to the terms of this Agreement. Neither party may assign any rights or delegate any duties under this Agreement without the other party's prior written approval, which approval shall not be unreasonably withheld. 1.20 LOCAL, STATE AND FEDERAL TAXES Consultant shall pay all income taxes, and FICA (Social Security and Medicare taxes) incurred while performing services under this Agreement. The City will not do the following: (1) Withhold FICA from Consultant's payments or make FICA payments on its behalf; (2) Make state and/or federal unemployment compensation contributions on Consultant's behalf; or 14 (3) Withhold state or federal income tax from any of Consultant's payments. If requested, the City shall provide Consultant with a certificate from the Texas State Comptroller indicating that the City is a non-profit corporation and not subject to State of Texas Sales and Use Tax. 1.21 INSURANCE Insurance. Consultant, at Consultant's sole cost, shall have and maintain during the term of this Agreement professional liability insurance coverage in the minimum amount of One Million Dollars from a company authorized to do insurance business in Texas and otherwise acceptable to the City. Subconsultant Insurance. Without limiting any of the other obligations or liabilities of Consultant, Consultant shall require each subconsultant performing work under this Agreement to maintain during the term of the Agreement, at the subconsultant's own expense, the same stipulated minimum insurance required in the immediately preceding paragraph, including the required provisions and additional policy conditions as shown below. As an alternative, Consultant may include its subconsultants as additional insureds on its own coverages as prescribed under these requirements. Consultant's certificate of insurance shall note in such event that the subconsultants are included as additional insureds. Consultant shall obtain and monitor the certificates of insurance from each subconsultant in order to assure compliance with the insurance requirements. Consultant must retain the certificates of insurance for the duration of this Agreement, and shall have the responsibility of enforcing these insurance requirements among its subconsultants. The City shall be entitled, upon request and without expense, to receive copies of these certificates of insurance. Insurance Policy Endorsements. Each insurance policy hereunder shall include the following conditions by endorsement to the policy: (1) Each policy shall require that thirty (30) days prior to the expiration, cancellation, non -renewal or any material change in coverage, a notice thereof shall be given to the City by certified mail to: City Manager, City of Round Rock 221 East Main Street Round Rock, Texas 78664 Consultant shall also notify the City, within twenty-four (24) hours of receipt, of any notices of expiration, cancellation, non -renewal, or material change in coverage it receives from its insurer. (2) Companies issuing the insurance policies shall have no recourse against the City for payment of any premiums or assessments for any deductibles which all are at the sole responsibility and risk of Consultant. 15 (3) Terms "the City" or "the City of Round Rock" shall include all authorities, boards, commissions, departments, and officers of the City and individual members, employees and agents in their official capacities, or while acting on behalf of the City of Round Rock. (4) The policy clause "Other Insurance" shall not apply to any insurance coverage currently held by the City, to any future coverage, or to the City's Self -Insured Retentions of whatever nature. (5) Consultant and the City mutually waive subrogation rights each may have against the other for loss or damage, to the extent same is covered by the proceeds of insurance. Cost of Insurance. The cost of all insurance required herein to be secured and maintained by Consultant shall be borne solely by Consultant, with certificates of insurance evidencing such minimum coverage in force to be filed with the City. 1.22 COMPLIANCE WITH LAWS, CHARTER AND ORDINANCES Consultant, its consultants, agents, employees and subcontractors shall use best efforts to comply with all applicable federal and state laws, the Charter and Ordinances of the City of Round Rock, as amended, and with all applicable rules and regulations promulgated by local, state and national boards, bureaus and agencies. Consultant shall further obtain all permits, licenses, trademarks, or copyrights required in the performance of the services contracted for herein, and same shall belong solely to the City at the expiration of the term of this Agreement. 1.23 FINANCIAL INTEREST PROHIBITED Consultant covenants and represents that Consultant, its officers, employees, agents, consultants and subcontractors will have no financial interest, direct or indirect, in the purchase or sale of any product, materials or equipment that will be recommended or required under this Agreement. 1.24 DESIGNATION OF REPRESENTATIVES The City hereby designates the following representative authorized to act in its behalf with regard to this Agreement: David Kautz Assistant City Manager/CFO City of Round Rock 221 East Main Street Round Rock, Texas 78664 Email: davidk@round-rock.tx.us 16 Consultant hereby designates the following representative authorized to act in its behalf with regard to this Agreement: Steven E. Spickard Senior Vice President Economics Research Associates 388 Market Street, Suite 1580 San Francisco, CA 94111 1.25 NOTICES All notices and other conununications in connection with this Agreement shall be in writing and shall be considered given as follows: (1) When delivered personally to recipient's address as stated herein; 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. Notice to Consultant: Steven E. Spickard, Senior Vice President Economics Research Associates 388 Market St., Suite 1580 San Francisco, CA 94111 Notice to City: City Manager, City of Round Rock 221 East Main Street Round Rock, TX 78664 AND TO: Stephan L. Sheets, City Attorney 309 East Main Street Round Rock, TX 78664 Nothing contained in this section shall be construed to restrict the transmission of routine communications between representatives of the City and Consultant. 1.26 APPLICABLE LAW; ENFORCEMENT AND VENUE This Agreement shall be enforceable in Round Rock, Texas, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for same shall lie in Williamson County, Texas. This Agreement shall be governed by and construed in accordance with the laws and court decisions of Texas. 17 1.27 EXCLUSIVE AGREEMENT The terms and conditions of this Agreement, including exhibits, 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. The parties understand and expressly agree that, in the event of any conflict between the terms of this Agreement and any other writing, this Agreement shall prevail. No modifications of this Agreement will be binding on any of the parties unless acknowledged in writing by the duly authorized governing body or representative for each party. 1.28 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, the City shall select one mediator and Consultant 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. The City and Consultant 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. 1.29 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 the parties. Consultant shall not be deemed to be in default of its obligations to the City if its failure to perform or its substantial delay in performance is due to the City's failure to timely provide requested information, data, documentation, or other material necessary for Consultant to perform its obligations hereunder. 1.30 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 or 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 18 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. 1.31 STANDARD OF CARE Consultant represents that it is specially trained, experienced and competent to perform all of the services, responsibilities and duties specified herein and that such services, responsibilities and duties shall be performed, whether by Consultant or designated subconsultants, in a manner according to generally accepted business attraction practices. 1.32 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. No delay or omission by either party in exercising any right or power shall impair such right or power or be construed to be a waiver. A waiver by either party of any of the covenants to be performed by the other or any breach thereof shall not be construed to be a waiver of any succeeding breach or of any other covenant. No waiver of discharge shall be valid unless in writing and signed by an authorized representative of the party against whom such waiver or discharge is sought to be enforced. This Agreement may be executed in multiple counterparts, which taken together shall be considered one original. The City agrees to provide Consultant with one fully executed original. IN WITNESS WHEREOF, the parties have executed this Agreement on the dates hereafter indicated. City of Ro By: Titl Date Signed: 19 Attest: Christine R. Martinez, City Secretary Date Signed: 5 -(ss-Q(p For 0 ty, Approved as to Form: 1 Steph. L. Sheets, City Attorney ECONOMICS RESEARCH ASSOCIATES STANDARD PROPOSAL ADDENDUM It is understood by the client that Economics Research Associates (ERA) can make no guarantees concerning the recommendations which will result from the proposed assignment, since these recommendations must be based upon facts discovered by ERA during the course of the study and those conditions existing as of the date of the report. To protect you and other clients, and to assure that the research results of ERA's work will continue to be accepted as objective and impartial by the business community, it is understood that our fee for the undertaking of this project is in no way dependent upon the specific conclusions reached or the nature of the advice given by us in our report to you. It is agreed by the client that the report is not to be used in conjunction with any public or private offering of debt or equity securities without prior written consent. It is further agreed that the client will indemnify ERA against any losses, claims, damages and liabilities under federal and state securities laws which may arise as a result of statements or omissions in public or private offerings of securities. It is agreed by the client that payment for the services of ERA is due upon receipt of progress invoices; and that full payment is due upon receipt of the completed report. In the event any invoice is not paid within 30 days after rendering of the invoice, then applicable provisions of Sections 1.06 and 1.10 of the Agreement shall govern. It is further agreed by the client that the report will be presented to third parties in its entirety and that no abstracting of the report will be made without first obtaining the permission of ERA, which permission shall not be unreasonably withheld. It is understood by ERA that the findings of this report are the proprietary property of the client and they will not be made available to any other organization or individual without the consent of the client, which consent shall not be unreasonably withheld. 00099691 /j kg