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FIXED PRICE BROWNFIELDS PROPOSAL I I /'Jlotv FIXED PRICE AGREEMENT BETWEEN THE CITY OF CLEARWATER AND THE UNIVERSITY OF SOUTH FLORIDA THIS AGREEMENT IS MADE AND ENTERED INTO on the 151 of January, 1998, BY AND BETWEEN The City of Clearwater, Florida( city) P.O. Box 4748, Clearwater Florida 34618 (hereinafter "Clearwater"), and The University of South Florida, acting for and on behalf of the Board of Regents, a public corporation of the State of Florida (hereinafter "USF"). For and in consideration of the mutual promises, covenants, and obligations contained herein, Clearwater retains USF to undertake certain activities described in Exhibit A to this contract. The said parties do agree as follows: I. SCOPE OF PROJECT. USF agrees to provide consultant services under the terms and conditions described in Exhibit "A". 2. TIME OF PERFORMANCE. To begin January 1,1998 and end September 30,1998 3. REPORTS. USF agrees to provide to the City reports on the Project in the form of an interim report due June 30, 1998 and a fmal report on September 30, 1998. All reports shall comply with City's recycled and recyclable products code requirements, Clearwater Code Section 2.601. 4. COMPENSATION. The City will pay USF a sum not to exceed $24,988, inclusive of all reasonable and necessary direct and indirect expenses as described in the cost estimate attached as Exhibit "B". The City may, from time to time, require changes in the scope of the project of USF to be performed hereunder. Such changes, including any increase or decrease in the amount of USF's compensation and changes in the terms of this Agreement which are mutually agreed upon by the City and USF shall be effective when incorporated in written amendment to this Agreement. 5. METHOD OF PAYMENT. USF shall bill City according to the payment schedule described in Exhibit C. City agrees to pay after approval of the City Project Manager under terms of the Florida Prompt Payment Act F.S. 218.70. 6. CONTRACTS FOR REPONSIBILITY. John Swinton will be designated as Project Director for this project by USF to manage and supervise the performance of this Agreement on behalf of USF. Associated with the Project Director will be staff members whose experience and qualifications are appropriate for this Project. The City will be represented by Miles Ballog, or his designee for all matters relating to this Agreement. 7. TERMINATION OF CONTRACT. The City, at its sole discretion, may terminate this contract by giving USF ten (10) days written notice of its election to do so and by specifying the effective date of such termination. USF shall be paid for its services through the effective date of such termination. Further, if USF shall fail to fulfill any of its obligations hereunder, this contract shall be in default; The City may terminate the contract and USF shall be paid only for work completed. 02 -;/ ;;.. c:') I I 8. NON-DISCRIMINATION. There shall be no discrimination against any employee who is employed in the work covered by Agreement, or against applicants for such employment, because of race, religion, color, sex, or national origin. This provision shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment advertising; rate of payor other forms of compensation; and selection for training, including apprenticeship. 9. INTERESTS OF PARTIES. USF covenants that its officers, employees, and shareholders have no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. 10. INDEMNIFICATION AND INSURANCE. USF and Clearwater are both public corporations existing under and by virtue of laws of the State of Florida. Except to the extent specifically waived by Section 768.28, Florida Statutes, both public entities are entitled to sovereign immunity. To the extent permitted by Florida law, each public entity named herein shall save and hold harmless the other public entity if that public entity is not negligent, its successors and assigns, from any and all claims, actions, and lawsuits asserted against the other public entity that is not negligent, and each public entity to the extent it is negligent, will, at its own cost and expense, and to the extent permitted by Florida law, defend and protect the other public entity that is not negligent against such claims and demands, provided, however, neither public entity shall be liable for the negligence of the other public entity, its servants, agents, employees, successors, or assigns, and provided, further, that the total amount to be indemnified by either public entity in any event, under any circumstances, shall not exceed the statutory limits set for in Section 768.28, Florida Statutes. 11. PROPIETARY MATERIALS. Upon termination of this Agreement, USF shall transfer, assign, and make available to City or its representatives all property and materials in USF's possession belonging to or paid by the City. 12. ATTORNEYS FEES. In the event that either party seeks to enforce this Agreement through attorneys at law, then the parties agree that each party shall bear its own attorney fees and costs, and that jurisdiction for such an action shall be in a court of competent jurisdiction in Pinellas County, Florida. IN WITNESS WHEREOF, the City and USF, have executed this Agreement on the date first above written. CITY OF CLEARWATER By: l Michael Roberto, City Manager Attest: Approved as to form: , '1'~~.- [) ~._ o~ a E. GoudeaiC.City Clerk - ~~ ~ ohn Carassas, Asst. C; Attorney r;:'(-:-'r-.:~~:\/F.'CI AS TO F41M HENRY W l..AVANDERA ATTORNEY USF I I Exhibit A BROWNFIELDS PROPOSAL Principle Investigators: John Swinton William Webb 1. Proposal for Flow-of-Ownership Plan: The Center for Economic Development Research (CEDR), proposes to create a model to estimate and track the economic benefits of the Downtown Environmental Path to Jobs Brownfields Project in Clearwater Florida. The City of Clearwater plans to reclaim previously contaminated property in the Collective Brownfields Area (CBA) for commercial use and to return a former lake region to its previous wetland status. As a part of undertaking environmental remediation, it is important to track the benefits directly and indirectly attributable to the remediation. Under the supervision John Swinton and William Webb, CEDR will work, over a twenty- one month period, to develop and apply a model designed to estimate the economic benefits of the City of Clearwater's plans. The purpose of the model is to allow decision makers to assess the economic justifications for further remediation as well as to determine the benefits of the current remediation plans. The model being proposed is expected to allow for a benefit-cost analysis of the reclamation process. Data permitting, the model will focus on four areas of economic importance: property values, employment, income, and sales receipts in the City of Clearwater. While the four economic indicators may not capture all of the social benefits of brownfield remediation we believe that they will reflect a considerable portion of the economic benefits of remediation. The Center for Economic Development Research will use the facilities of the University of South Florida in order to complete the assigned task. The lead researchers for the study are John Swinton and William Webb. John Swinton is an assistant professor in the Department of Economics at the University of South Florida's College of Business Administration. He earned his Ph.D. in Economics at the University of Wisconsin-Madison in 1996 with an emphasis in natural resource and environmental economics. William Webb is a research associate with the Center for Economic Development Research. His background includes ten years of local and regional economic research with special emphasis in economic development and economic impact analysis. In addition he has spent part of his professional life in commercial real estate research. II. Information Format The information will be produced in spreadsheet, print, and geographic format for use by the researchers and the City of Clearwater. The geographic program to be used will likely be ARCINFOt. However, the most suitable program will be employed based on the information gathered. All information in the measurement categories will be collected in a timely and accurate manner. It is determined that the baseline information will be collected and coded within a six month period beginning at the inception of the contract. It is estimated that after this six month period a report of baseline information will be produced for review by the City of Clearwater. I I III. Literature Review Determination of those changes in the economic indicators that are attributable to environmental quality factors requires econometric modeling. The model relies on the accumulated experience of economic researchers. Consequently, a significant amount of effort must go toward reviewing the relevant literature. There are two areas that need to be investigated. The first area addresses the issue of site remediation. City sponsored site remediation is a relatively new phenomenon. Consequently, there is little information available about the economic benefits of site remediation. Yet, it is important to search for examples where specific business sites have been cleaned for the purpose of returning them to commercial use. The second area addresses the issue of returning the Former Lake Region (FLR) to its original wetland state. The benefits derived from such an action are two-fold. First, local property owners benefit because the wetland can mitigate their obligation to provide ten-to-fifteen percent property set aside for water run off management. Second, property owners may experience improvements in property values that derive from the improvement in the area's aesthetic quality. The first values are direct use values. Property owners can develop more of their land with the relaxation of the set-aside requirements. The second values are indirect values. Isolating the second source of changes in property values requires use of the Hedonic Valuation Method (HVM). The HVM determines what portion of property value changes are attributable to changes in the aesthetic properties of the surrounding environment. The HVM has a lengthy track record but has normally been used to determine the value of marginal changes in environmental quality, not wholesale reintroduction of wetlands. Therefore, a careful literature search will aid in determining the appropriate use of the HVM in enumerating the value of the CBA of returning the FLR to wetland. IV. Model The model will focus on two separate issues: the impact of site remediation to the CBA and the impact of returning the FLR to wetlands to the CBA. The first part of the model will focus on changes in the use of the specific sites that are the focus of remediation and the changes in the use of surrounding sites. The object of the model will be to determine the direct benefit to the value of the site and to determine whether or not site remediation has significant spill-over benefits. The spill-over benefits will include changes in employment at the remediation site and contiguous sites, changes in wages at the remediation site and contiguous sites, and changes in property values at the remediation site and contiguous sites. Remediation will often encourage the use of an otherwise idle site. This use will provide obvious benefits to the CBA. Returning idle sites to use may also improve the desirability of surrounding sites. Careful tracking of the business patterns will reveal such spill-over effects. Furthermore, by tracking the progress of the surrounding City of Clearwater, it will be possible to determine what changes can be attributed to the site reclamation and what changes may be attributed to general trends in the area. The second part of the model will focus on the benefits of returning the FLR to wetland status. Reintroducing the wetland to the CBA will provide the watershed area with central stormwater attenuation and improve water quality in the CBA. The lake will allow surrounding property owners to develop portions of their property which were previously devoted to stormwater runoff attenuation. In the second part of the model we will focus on determining the changes in employment, wages, and property values due to any changes in development of the properties that use the lake for storm water attenuation. I I Other community values that the lake will provide are aesthetic quality and general improvements in water quality. These values are difficult to measure. Property values, however, are likely to capitalize a portion of the community benefits attributable to changes in water quality and aesthetic quality. The model will incorporate the HVM to capture some of the benefits of returning the FLR to wetland. The HVM assumes a property derives its value from its combination of attributes. Attributes may include such aspects as size, zoning restrictions, proximity to markets, and environmental quality. Changes in any of these aspects will cause the value of the property to change. By tracking changes in the use and characteristics of properties in the CBA, it will be possible to separate the impact of changes in environmental quality from the impacts of changes in other factors. Reports to be delivered as follows interim report June 30,1998, final report September 30, 1998. I v. Cost Break-out John Swinton 1/4 time benefits at 33% of salary William Webb $15/hr 130 hours benefits at 33% of salary Students $6/hr 750 hours Travel/phone/copies Data/equipment use Sponsored Programs Overhead 15% of costs Total Exhibit B Salary $10,500 $1 ,950 $4,500 Benefits $3,465 $644 I Total $13,965 $2,594 $ 4,500 $ 120 $ 550 $3,259 $24,988 I I Exhibit C VI. Payment Schedule The City of Clearwater Florida will make a total of three payments. The first payment will be for $8,330 and be made within 30 days of the contract signing. Second payment of $8,330 will be invoiced on June 30, 1998, with the interim report and payment should be made within 30 days of the invoice date. Final payment of $8,328 will be invoiced with the final report on September 30, 1998 and payment made within 30 days of the invoice date.