HomeMy WebLinkAboutAGMT - Strategic Economic Development, LLC (Economic Development Services)� T
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February 10, 2016
Strategic Economic Development, LLC
2892 Bellflower Boulevard, Suite 459
Long Beach, California 90815
Attn: General Counsel
RE: Notice of Economic Development Services Agreement Termination
City of Seal Beach and Strategic Economic Development, LLC
Dear Sir or Madam:
CITY HALL
211 EIGHTH STREET
SEAL BEACH, CA 90740
(562) 431 -2527
www.sealbeachca.gov
This letter shall serve as notice of termination of the agreement dated May 27, 2014 between the City of
Seal Beach and Strategic Economic Development, LLC. Pursuant to Section 7.1 of the above referenced
agreement, the Agreement may be terminated by City, without cause upon giving the other party
written notice thereof not less than 30 days prior to the date of termination. The termination will be
effective March 11, 2016. We note that no work has or will be requested, no expenses have been
approved, and no items have been added to Exhibit A of the Agreement as of the date of this notice. No
funds are due to the contractor.
Per the terms of this agreement, please take the necessary measures to maintain related records for a
period of two years following the termination date.
Thank you for the services provided to the City under other contracts.
Sincerely,
Jill R. Ingram
City Manager
cc: Seal Beach Mayor and City Council
Craig A. Steele, City Attorney
U.S. Postal ServiceT
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2i Strategic Economic Development, LLC
Attn General Counsel
r 2892 Bellflower Boulevard, Suite 459
Long Beach, CA 90815
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Strategic Economic Developme4
Attin General Counsel I
2892 Bellflower Boulevard, Suite
Long Beach, CA 90815
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City Clerk Robin Robert4
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Seal Beach, CA 90740 . LE
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ECONOMIC DEVELOPMENT SERVICES
AGREEMENT
between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
M
Strategic Economic Development, LLC
2892 Bellflower Boulevard, Suite 459
Long Beach, CA 90815
(562) 883 -3001
This Economic Development Services Agreement ( "the Agreement') is made as of
May 27, 2014 (the "Effective Date "), by and between Strategic Economic Development,
LLC ( "Consultant'), a California limited liability corporation, and the City of Seal Beach
( "City "), a California charter city, (collectively, "the Parties ").
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RECITALS
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A. City desires certain economic development services.
B. Consultant represents that it is qualified to provide City with such services.
NOW THEREFORE, in consideration of the Parties' performance of the
promises, covenants, and conditions stated herein, the Parties hereto agree as follows:
AGREEMENT
1.0 Scope of Services
1.1. Consultant shall provide City with economic development services
( "Services ") including, but not limited to: (1) strategy development with City staff;
(2) identification, selection, and incentivization of new businesses to locate in City;
(3) performing due diligence on prospective new businesses; (4) coordination of the
relocation to City of new businesses; (5) development of new business -City
partnerships; and (6) annual contract performance reviews and other reporting as
directed by City.
1.2. Consultant shall perform all Services under this Agreement in accordance
with the standard of care generally exercised by like professionals under similar
circumstances and in a manner reasonably satisfactory to City.
1.3. In performing this Agreement, Consultant shall comply with all applicable
provisions of federal, state, and local law.
2.0 Term
The term of this Agreement shall commence as of the Effective Date and shall
continue until terminated as provided herein. Termination of this Agreement shall not
extinguish or alter in any way the duties and rights of City and Consultant that may have
accrued prior to such termination.
3.0 Consultant's Compensation
3.1. Contingent Quarterly Payments. For each business listed on Exhibit A,
City shall make to Consultant eighty (80) Contingent Quarterly Payments, paid quarterly
on a fiscal year basis and equal to 7% of such Sales Tax Revenue generated by that
business and actually received by City in the preceding quarter, provided that if City
identifies a new business that is added to Exhibit A, the Contingent Quarterly Payment
to Consultant shall be equal to 5% of the Sales Tax Revenue generated by that
business. These payments to Consultant shall be made within 15 days after City
confirms its quarterly receipt of Sales Tax Revenue. City's obligations under this
paragraph shall survive termination of this Agreement.
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3.2. Contingent Success Payment. On or before the first day of the 16th month
after a new business is added to Exhibit A by the mutual written consent of the Parties,
City shall remit to Consultant (on a one -time basis) a Contingent Success Payment that
is equal to 5% of the Sales Tax Revenue generated by that new business during the
first 12 months following its addition to Exhibit A.
3.3. Annual Adjustment. Promptly after each fiscal year of City, City shall
determine with respect to the preceding fiscal year, both the aggregate amount of Sales
Tax Revenue received by City from the businesses listed on Exhibit A and the
aggregate Contingent Quarterly Payments made to Consultant pursuant to Section 3.1.
If for any reason (including but not limited to reporting errors or other adjustments) the
aggregate amount of the Contingent Quarterly Payments made by City pursuant to
Section 3.1 of this Agreement for the preceding fiscal year is less than 7% of Sales Tax
Revenue generated by the businesses listed on Exhibit A (or 5% in the case of
businesses originally identified by City) during that same fiscal year, City shall pay to
Consultant an adjustment payment equal to the amount of the deficiency. If for any
reason (including but not limited to reporting errors or other adjustments) the aggregate
amount of the Contingent Quarterly Payments made by City pursuant to Section 3.1 of
this Agreement for the preceding fiscal year is more than 7% of Sales Tax Revenue
generated by the businesses listed on Exhibit A (or 5% in the case of businesses
originally identified by City) during that same fiscal year, then the amount of the excess
shall be applied towards the next Contingent Quarterly Payment due under Section 3.1;
except that if any unapplied excess remains after the last Contingent Quarterly Payment
has been made, then Consultant shall pay the amount of the unapplied excess to City
upon demand.
3.4. Disputes. In the event of any dispute regarding the amounts payable under
this Agreement, the Parties shall promptly meet and confer in good faith to attempt to
resolve the dispute.
3.5. Approved Expense Payment. City shall reimburse Consultant for expenses
incurred by Consultant that have been previously approved in writing by City.
3.6. Sales Tax Revenue. For purposes of this Agreement, "Sales Tax
Revenue" means the taxes derived from businesses listed on Exhibit A and allocated to
and actually received by City pursuant to the Uniform Local Sales and Use Tax Law,
commencing with California Revenue and Taxation Code Section 7200 et seq., as
amended. "Sales Tax Revenue" shall not include Penalty Assessments, taxes levied
by, collected for or allocated to the State of California, the County of Orange, any district
or other entity, or any funds paid, granted or allocated to City by the State of California,
the County of Orange, any district or other entity, notwithstanding that such funds
received by City are derived or measured by such other entity based upon taxable
sales. "Sales Tax Revenue" shall also not include: (i) any portion of taxes received by
City that City may be required to pay, transfer, assign, or allocate to any other entity or
entities by virtue of any law now or hereafter existing, or by virtue of any agreement
entered into between City and any other governmental entity under California
Government Code Section 53084; (ii) the State Board of Equalization's administrative
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and processing fee attributable to City's portion of such taxes (calculated at the same
percentage of such taxes as applies city- wide); or (iii) any sales tax "over- rides" for
transportation and public safety. Sales and Use Taxes shall not be considered to have
been received by City until City is able to confirm receipt of such taxes from the State
Board of Equalization.
3.7. Gann Limit. Total payments to Consultant in any single budget year shall
be limited to the extent necessary to prevent City from exceeding the Gann limit
(California Const., Art. 13B) for that budget year. In the event that payments to
Consultant are so limited, any unpaid amounts shall be remain due to Consultant, and
City's obligations for such unpaid payments shall survive the Term of this Agreement
until paid by City.
3.8. Taxing Authority. Consultant may not and shall not attempt to compel any
exercise of City's taxing authority to make any payments provided for in this Section 3.0.
4.0 Exhibit A.
4.1. Exhibit A shall not be amended, in whole or in part, except by mutual
written consent of both Parties as provided for on Exhibit A. In the event of termination
by any Party, no new businesses shall be added to Exhibit A.
4.2. For purposes of this Agreement, each new business identified in Exhibit A
shall be composed of itself and each of its subsidiaries and affiliates, each located
within City. No change in name, legal structure, or ownership (whether by acquisition,
merger, reorganization, or any other means) of any business listed on Exhibit A shall be
construed as a new business entitling Consultant to additional compensation. Nor shall
any such change in name, legal structure, or ownership (whether by acquisition,
merger, reorganization, or any other means) alter City's obligations pursuant to this
Agreement.
4.3. Unless otherwise agreed to in writing by City, Consultant warrants that the
new businesses identified in Exhibit A are not "relocating businesses" within the
meaning of Section 53084 of the California Government Code such that City would be
required to share Sales Tax Revenue generated by such businesses with any other
jurisdiction. To the extent that any new businesses indentified in Exhibit A is
determined to be a "relocating businesses," Consultant shall immediately return to City
any Contingent Monthly payment or Contingent Success Payment made to Consultant
related to such business.
5.0 No Loan or Indebtedness
The provisions of this Agreement do not constitute nor shall be construed as
constituting any indebtedness or a loan of credit of either Party within the meaning of
any constitutional or statutory authority.
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6.0 Consultant's Records
Upon 24 -hour notice from City, Consultant shall allow City or City's agents or
representatives to inspect at Consultant's offices during reasonable business hours all
records, invoices, time cards, cost control sheets and other records maintained by
Consultant in connection with this Agreement. City's rights under this Section 6.0 shall
survive for two years following the termination of this Agreement.
7.0 Termination
7.1. This Agreement may be terminated by City, without cause, or by
Consultant based on reasonable cause, upon giving the other party written notice
thereof not less than 30 days prior to the date of termination.
7.2. This Agreement may be terminated by City upon 10 days' notice to
Consultant if Consultant fails to provide satisfactory evidence of renewal or replacement
of comprehensive general liability insurance as required by this Agreement at least 20
days before the expiration date of the previous policy.
7.3. City's obligations under Section 3.1 shall survive termination of this
Agreement.
8.0 Party Representatives
8.1. The City Manager is City's representative for purposes of this Agreement.
8.2. Diane Ripley is Consultant's primary representative for purposes of this
Agreement.
9.0 Notices
9.1. All notices permitted or required under this Agreement shall be deemed
made when personally delivered or when mailed 48 hours after deposit in the United
States Mail, first class postage prepaid and addressed to the party at the following
addresses:
To City: City of Seal Beach
211 - 8th Street
Seal Beach, California 90740
Attn: City Manager
To Consultant: Strategic Economic Development, LLC
2892 Bellflower Boulevard, Suite 459
Long Beach, California 90815
Attn: General Counsel
9.2. Actual notice shall be deemed adequate notice on the date actual notice
occurred, regardless of the method of service.
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10.0 Independent Contractor
10.1. Consultant is an independent contractor and not an employee of City. All
services provided pursuant to this Agreement shall be performed by Consultant or
under its supervision. Consultant will determine the means, methods, and details of
performing the services. Any additional personnel performing services under this
Agreement on behalf of Consultant shall also not be employees of City and shall at all
times be under Consultant's exclusive direction and control. Consultant shall pay all
wages, salaries, and other amounts due such personnel in connection with their
performance of services under this Agreement and as required by law. Consultant shall
be responsible for all reports and obligations respecting such additional personnel,
including, but not limited to: social security taxes, income tax withholding,
unemployment insurance, disability insurance, and Workers' Compensation insurance.
10.2. Consultant shall indemnify and hold harmless City and its elected officials,
officers, employees, servants, designated volunteers, and agents serving as
independent contractors in the role of City officials, from any and all liability, damages,
claims, costs and expenses of any nature to the extent arising from Consultant's
personnel practices. City shall have the right to offset against the amount of any fees
due to Consultant under this Agreement any amount due to City from Consultant as a
result of Consultant's failure to promptly pay to City any reimbursement or
indemnification arising under this Section.
11.0 Subcontractors
No portion of this Agreement shall be subcontracted without the prior written
approval of City. Consultant is fully responsible to City for the performance of any and
all subcontractors.
12.0 Assignment
Consultant shall not assign or transfer any interest in this Agreement whether by
assignment or novation, without the prior written consent of City. Any purported
assignment without such consent shall be void and without effect.
13.0 Insurance
13.1. Consultant shall not commence work under this Agreement until it has
provided evidence satisfactory to City that Consultant has secured all insurance
required under this Section. Consultant shall furnish City with original certificates of
insurance and endorsements effecting coverage required by this Agreement on forms
satisfactory to City. The certificates and endorsements for each insurance policy shall
be signed by a person authorized by that insurer to bind coverage on its behalf, and
shall be on forms provided by City if requested. All certificates and endorsements shall
be received and approved by City before work commences. City reserves the right to
require complete, certified copies of all required insurance policies, at any time.
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13.2. Consultant shall, at its expense, procure and maintain for the duration of
this Agreement, insurance against claims for injuries to persons or damages to property
that may arise from or in connection with the performance of this Agreement. Insurance
is to be placed with insurers with a current A.M. Best's rating no less than A:VIII,
licensed to do business in California, and satisfactory to City. Coverage shall be at
least as broad as the latest version of the following: (1) General Liability: Insurance
Services Office Commercial General Liability coverage (occurrence form CG 0001);
(2) Automobile Liability: Insurance Services Office Business Auto Coverage form
number CA 0001, code 1 (any auto); and, if required by City, (3) Professional Liability.
Consultant shall maintain limits no less than: (1) General Liability: $2,000,000 per
occurrence for bodily injury, personal injury and property damage and if Commercial
General Liability Insurance or other form with a general aggregate limit is used, either
the general aggregate limit shall apply separately to this Agreement the general
aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability:
$1,000,000 per accident for bodily injury and property damage; and (3) Professional
Liability: $1,000,000 per claim /aggregate.
13.3. The insurance policies shall contain the following provisions, or Consultant
shall provide endorsements on forms supplied or approved by City to state:
(1) coverage shall not be suspended, voided, reduced or canceled except after 30 days'
prior written notice by certified mail, return receipt requested, has been given to City;
(2) any failure to comply with reporting or other provisions of the policies, including
breaches of warranties, shall not affect coverage provided to City, its directors, officials,
officers, (3) coverage shall be primary insurance as respects City, its directors, officials,
officers, employees, agents and volunteers, or if excess, shall stand in an unbroken
chain of coverage excess of Consultant's scheduled underlying coverage and that any
insurance or self- insurance maintained by City, its directors, officials, officers,
employees, agents and volunteers shall be excess of the Consultant's insurance and
shall not be called upon to contribute with it; (4) for general liability insurance, that City,
its directors, officials, officers, employees, agents and volunteers shall be covered as
additional insureds with respect to the services or operations performed by or on behalf
of Consultant, including materials, parts or equipment furnished in connection with such
work; and (5) for automobile liability, that City, its directors, officials, officers, employees,
agents and volunteers shall be covered as additional insureds with respect to the
ownership, operation, maintenance, use, loading or unloading of any auto owned,
leased, hired or borrowed by Consultant or for which Consultant is responsible.
13.4. All insurance required by this Section shall contain standard separation of
insureds provisions and shall not contain any special limitations on the scope of
protection afforded to City, its directors, officials, officers, employees, agents, and
volunteers.
13.5. Any deductibles or self- insured retentions shall be declared to and
approved by City. Consultant guarantees that, at the option of City, either: (1) the
insurer shall reduce or eliminate such deductibles or self- insured retentions as respects
City, its directors, officials, officers, employees, agents, and volunteers; or
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(2) Consultant shall procure a bond guaranteeing payment of losses and related
investigation costs, claims and administrative and defense expenses.
14.0 Indemnification, Hold Harmless, and Duty to Defend
14.1. Except for claims made under Section 53084 of the California Government
Code, Consultant shall defend, indemnify, and hold City, its officials, officers,
employees, volunteers and agents serving as independent contractors in the role of City
officials (collectively "City Indemnitees ") free and harmless from any and all claims,
demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or
equity, to property or persons, including wrongful death, in any manner arising out of or
incident to any acts or omissions of Consultant, its employees, or its agents in
connection with the performance of this Agreement, including without limitation, the
payment of all consequential damages and attorneys' fees and other related costs and
expenses, except for such loss or damage arising from the sole negligence or willful
misconduct of City. With respect to any and all such aforesaid suits, actions, or other
legal proceedings of every kind that may be brought or instituted against City
Indemnitees, Consultant shall defend City Indemnitees, at Consultant's own cost,
expense, and risk, and shall pay and satisfy any judgment, award, or decree that may
be rendered against City Indemnitees. Consultant shall reimburse City Indemnitees for
any and all legal expenses and costs incurred by each of them in connection therewith
or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall
not be restricted to insurance proceeds, if any, received by Consultant or any of the
City Indemnitees. All duties of Consultant under this Section shall survive termination of
this Agreement.
14.2. Except for claims made under Section 53084 of the California Government
Code, City shall defend, indemnify, and hold Consultant, its officers, employees, and
agents (collectively "Consultant Indemnitees ") free and harmless from any and all
claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in
law or equity, to property or persons, including wrongful death, in any manner arising
out of or incident to any acts or omissions of City, its employees, or its agents in
connection with the performance of this Agreement, including without limitation, the
payment of all consequential damages and attorneys' fees and other related costs and
expenses, except for such loss or damage arising from the sole negligence or willful
misconduct of Consultant Indemnitees. With respect to any and all such aforesaid suits,
actions, or other legal proceedings of every kind that may be brought or instituted
against Consultant Indemnitees, City shall defend Consultant Indemnitees, at City's own
cost, expense, and risk, and shall pay and satisfy any judgment, award, or decree that
may be rendered against Consultant Indemnitees. City shall reimburse Consultant for
any and all legal expenses and costs incurred in connection therewith or in enforcing
the indemnity herein provided. City's obligation to indemnify shall not be restricted to
insurance proceeds, if any, received by Consultant. All duties of City under this Section
shall survive termination of this Agreement.
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15.0 Breach Provisions
15.1. A Party shall be deemed in breach of this Agreement if it materially
breaches any of its provisions and such material breach is not cured within the time set
forth in a written notice of violation from the other Party, which notice period shall not be
less than 30 days from the date the notice of breach is deemed made, provided that if
the breaching party cannot reasonably cure the breach within the time frame set in the
notice, that Party shall be in breach only if it fails to commence to cure the breach within
such time limit and diligently thereafter pursue such cure to completion.
15.2. Either Party may terminate this Agreement for breach after notice and
failure to cure as set forth in Section 15.0 has occurred. This remedy shall be in
addition to any other remedies afforded to the Parties by law.
16.0 Equal Opportunity
Consultant affirmatively represents that it is an equal opportunity employer.
Consultant shall not discriminate against any subcontractor, employee, or applicant for
employment because of race, religion, color, national origin, handicap, ancestry, sex,
sexual orientation, or age. Such non - discrimination includes, but is not limited to, all
activities related to initial employment, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff, or termination.
17.0 Labor Certification
By its signature hereunder, Consultant certifies that it is aware of the provisions
of Section 3700 of the California Labor Code that require every employer to be insured
against liability for Workers' Compensation or to undertake self- insurance in accordance
with the provisions of that Code, and agrees to comply with such provisions before
commencing the performance of the Services.
18.0 Entire Agreement
This Agreement contains the entire agreement of the Parties with respect to the
subject matter hereof, and supersedes all prior negotiations, understandings, or
agreements. This Agreement may only be modified by a writing signed by both Parties.
19.0 Severability
The invalidity in whole or in part of any provisions of this Agreement shall not
void or affect the validity of the other provisions of this Agreement.
20.0 Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws
of the State of California. Any action, suit, or proceeding related to or arising from this
Agreement shall be filed in an appropriate court having jurisdiction in the County of
Orange, California.
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21.0 No Third Party Rights
No third party shall be deemed to have any rights hereunder against either party
as a result of this Agreement.
22.0 Waiver
No waiver of any default shall constitute a waiver of any other default or breach,
whether of the same or other covenant or condition. No waiver, benefit, privilege,' or
service voluntarily given or performed by a party shall give the other party any
contractual rights by custom, estoppel, or otherwise.
23.0 Prohibited Interests; Conflict of Interest
20.1. Consultant covenants that it presently has no interest and shall not
acquire any interest, direct or indirect, which may be affected by the Services, or which
would conflict in any manner with the performance of the Services. Consultant further
covenants that, in performance of this Agreement, no person having any such interest
shall be employed by it. Furthermore, Consultant shall avoid the appearance of having
any interest, which would conflict in any manner with the performance of the Services.
Consultant shall not accept any employment or representation during the term of this
Agreement which is or may likely make Consultant "financially interested" (as provided
in California Government Code § §1090 and 87100) in any decision made by City on any
matter in connection with which Consultant has been retained.
20.2. Consultant further warrants and maintains that it has not employed or
retained any person or entity, other than a bona fide employee working exclusively for
Consultant, to solicit or obtain this Agreement. Nor has Consultant paid or agreed to
pay any person or entity, other than a bona fide employee working exclusively for
Consultant, any fee, commission, gift, percentage, or any other consideration contingent
upon the execution of this Agreement. Upon any breach or violation of this warranty,
City shall have the right, at its sole and absolute discretion, to terminate this Agreement
without further liability, or to deduct from any sums payable to Consultant hereunder the
full amount or value of any such fee, commission, percentage or gift.
20.3. Consultant warrants and maintains that it has no knowledge that any
officer or employee of City has any interest, whether contractual, noncontractual,
financial, proprietary, or otherwise, in this transaction or in the business of Consultant,
and that if any such interest comes to the knowledge of Consultant at any time during
the term of this Agreement, Consultant shall immediately make a complete, written
disclosure of such interest to City, even if such interest would not be deemed a
prohibited "conflict of interest" under applicable laws as described in this subsection.
24.0 Attorneys' Fees
If either Party commences any legal, administrative, or other action against the
other party arising out of or in connection with this Agreement, the prevailing Party in
such action shall be entitled to recover from the losing Party its attorneys' fees and
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other costs incurred in connection therewith. A court, upon notice and motion by a
party, shall determine who the prevailing is. Any recoverable attorneys' fees and costs
shall be fixed by such court.
25.0 Exhibits
All exhibits referenced in this Agreement are hereby incorporated into the
Agreement as if set forth in full herein. In the event of any material discrepancy
between the terms of any exhibit so incorporated and the terms of this Agreement, the
terms of this Agreement shall control.
26.0 Captions and Headings
The captions and headings of the various sections and subsections of this
Agreement are for the convenience of reference only, and they shall neither constitute a
part of this Agreement for any other purpose nor affect its interpretation.
27.0 Corporate Authority
The person executing this Agreement on behalf of Consultant warrants that he or
she is duly authorized to execute this Agreement on behalf of said Party and that by his
or her execution, Consultant is formally bound to the provisions of this Agreement.
IN WITNESS WHEREOF, the Parties hereto, through their respective authorized
representatives have executed this Agreement as of the date and year first above
written.
CITY OF SEAL BEACH
Attest:
By:
Lida Devine, City Clerk
Approv a to For
By: S vb Gr eWr
�( Quinn Barrow, City Attorney
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