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PROFESSIONAL SERVICES CONTRACTPROFESSIONAL SERVICES CONTRACT THIS CONTRACT, entered into this 97 14- day of September, 2010, by and between the CITY OF CLEARWATER, a Florida municipal corporation, hereinafter referred to as "City," P.O. Box 4748, Clearwater, Florida 33758 and TIP Strategies, Inc., a Texas corporation, hereinafter referred to as "TIP," 105 E. 6t" Street, Suite 550, Austin, Texas 78701. WHEREAS, the City requested professional services for the development of a citywide economic development strategic plan; and WHEREAS, TIP agrees, pursuant to the scope of work as contained in Exhibit "A" attached hereto, to develop a citywide economic development strategic plan; NOW THEREFORE, in consideration of the promises stated herein, the City and TIP mutually agree as follows: 1. SCOPE OF PROJECT. TIP agrees to provide professional services under the terms and conditions described in attached Exhibit "A." 2. TIME OF PERFORMANCE. This Contract shall commence on September 22, 2010 and terminate on July 31, 2011. 3. COMPENSATION. The City will pay TIP a sum not to exceed $80,000. This will be $75,000 for completion of the work and not to exceed $5,000 for all reasonable and necessary direct expenses. The City may, from time to time, require changes in the scope of the project of TIP to be performed hereunder. Such changes, including any increase or decrease in the amount of TIP's compensation and changes in the terms of this Contract which are mutually agreed upon by and between City and TIP shall be effective when incorporated in written amendment to this Contract. Page 1 of 5 4. METHOD OF PAYMENT. TIP's invoices shall be submitted to the City for approval for payment on a monthly basis, by percentage of work completed according to "Exhibit B". The City agrees to pay after approval under the terms of the Florida Prompt Payment Act F.S. 218.70. The City's performance and obligation to pay under this Contract is contingent upon an annual appropriation of the City's budget. 5. NOTICES AND CHANGES OF ADDRESS. Any notice required or permitted to be given by the provisions of this Contract shall be conclusively deemed to have been received by a party hereto on the date it is hand delivered to such party at the address indicated below (or at such other address as such party shall specify to the other party in writing), or if sent by registered or certified mail (postage prepaid) on the fifth (5th) business day after the day on which such notice is mailed and properly addressed. TIP Strategies, Inc. Jon go /-Y r ?5 Name Pr??t ci pa I ? ?AgpGi?q ?irtC?r' Title IOLP F. (rf"' 5? rt, Sir. 550 Ausbi22 i'f -Iyoi Address 51?.?43.g113 Telephone # 150.343.9 1go Facsimile # 6. TERMINATION OF CONTRACT. City of Clearwater Geraldine Campos Lopez Economic Development & Housing Director P.O. Box 4748 Clearwater, Florida 33758 (727) 562-4220 Telephone # (727) 562-4075 Facsimile # Page 2 of 5 The City at its sole discretion may terminate this Contract by giving TIP a ten (10) day written notice of its election to do so and by specifying the effective date of such termination. TIP shall be paid for its services through the effective date of such termination. Further, if TIP shall fail to fulfill any of its obligations'hereunder, this Contract shall be in default, the City may terminate the Contract, and TIP shall be paid only for work completed. 7. INDEMNIFICATION AND INSURANCE. TIP, at its own expense, shall procure and maintain the following insurance: A. Comprehensive General Liability Insurance on an "occurrence" basis in an amount not less than $1,000,000 combined single-limit Bodily Injury Liability and Property Damage Liability; B. Business Automobile Liability insurance in the amount of at least $1,000,000, providing Bodily Injury Liability and Property Damage Liability; C. Workers' Compensation Insurance applicable to its employees for statutory coverage limits, and Employers' Liability with a $500,000 limit, which meets all applicable state and federal laws; and D. Professional Liability/Malpractice/Errors or Omissions insurance, as appropriate for the type of business engaged in by the Vendor, shall be purchased and maintained by the Vendor with minimum limits of $1,000,000 per occurrence. The parties recognize that TIP is an independent contractor. TIP agrees to indemnify and hold harmless the City of, from, and against all liability and expense, including reasonable attorney's fees, in connection with any and all claims whatsoever for personal injuries or property damage caused by the negligent or deliberate act or omission of TIP, its agents, officers, subcontractors, employees, and independent contractors. 8. PROPRIETARY MATERIALS. Page 3 of 5 Upon termination of this Contract, TIP shall transfer, assign and make available to City or its representatives all property and materials in TIP's possession belonging to or paid for by the City. 9. INTERESTS OF PARTIES. TIP 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 and/or provision of services required under the terms and conditions of this Contract. 10. CONFORMANCE WITH LAWS. TIP agrees to comply with all applicable federal, state and local laws during the life of this Contract. 11. ATTORNEY FEES. In the event that either party seeks to enforce this Contract through attorneys at law, then the parties agree that each party shall bear its own attorney fees and costs. 12. GOVERNING LAW AND VENUE. The laws of the State of Florida shall govern this Contract, and any action brought by either party shall lie in Pinellas County, Florida. Page 4 of 5 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date set forth above. CITY OF CLEARWATER, FLORIDA Countersigned: Frank Hibbard Mayor Approved as to form: lu k 14 - Pam Akin City Attorney By: 1 51. & '- ?- 4,t,?-7 al William B. Horne II City Manager Attest: ate:, C'ac Rosemarie Call City Clerk 01? TIP STRATEGIES, INC. Attest: Print Name: Secretary int Name:o?JR? S Title: ?L) U G ?f\L Page 5 of 5 EXHIBITA Strategic Economic Development Plan Scope of Work for the City of Clearwater, Florida (RFP #17-10) SEPTEMBER 2010 -'n Pstrateqies City of Clearwater, Florida ¦ ¦ ¦ Scope of Work Our team has an established process for conducting economic development strategy work. Our Theory Into Practice (TIP) planning model combines analytical tools with the latest thinking in economic development, workforce training, and community-based principles to create innovative and publicly supported strategies. In our years of leading consulting projects across the country, this three-phase approach - Discovery, Opportunity, and Implementation - has proven flexible enough to address the variety of challenges our clients face. Throughout the course of the project, our team will coordinate with ongoing initiatives, including the Tampa Bay Partnership's Cluster Study and Workforce Analysis and the efforts of other area groups, including the Pinellas County Economic Development Department and Pinellas County Convention and Visitors Bureau. Understanding how Clearwater's economic opportunities fit within those of its regional partners will be a focus of this work. Phase 1: Economic Analysis [Discovery] We begin by documenting our client's position from an economic development Phase 1 perspective. During this phase we review available materials, visit with Summary knowledgeable sources, and conduct a targeted analysis of relevant economic and demographic trends to reach an understanding of the current state of the region. (Where are we now? How do we compare with our peen; and competitors?) This work serves as the basis for economic development strategies in Phase 2. Tasks 1.1 Kick-off meeting 1.1 Kick-off meeting I A strong working relationship between our team and 11. 2 2 Economic assessment . Trends the client project team is essential. The kick-off meeting provides the opportunity 1.4 Benchmarking to discuss objectives, define success factors, identify relevant studies and initiatives, and review the team's overall expectations for the engagement. The Deliverables • Economic assessment findings outcome of the meeting will be a project management plan that will serve as the Benchmark profiles foundation for all the work to follow. Schedule 1.2 Economic assessment I In addition to a tour of the area and a review of October • Trip #1 (Kick-off meeting with existing planning documents, our analysts prepare a targeted analysis of steering committee, community demographic and economic factors that are of greatest concern to economic windshield tour; stakeholder decision makers. This market-based analysis focuses on factors that define the interviews) • Deliverables: project website area's overall competitiveness and highlight Clearwater's unique economic November strengths and weaknesses in the context of the larger economy. Trip #2 (Presentation of initial findings from data analysis; Our standard assessment addresses the elements outlined below, but specific stakeholder interviews and focus groups) aspects can be tailored to meet the needs of the client. Throughout this phase, Deliverables: Economic analysis we work closely with the client project team to avoid duplication of existing document (assessment, trends, research. We have found, however, there is value in coming to a common benchmarks) understanding of the data from an economic development perspective. T Rstrategies7 theory into pra<;t ce [ 2 City of Clearwater, Florida ¦ ¦ ¦ 4 Workforce & education. We begin by analyzing the area's demographics from the perspective of current employers and potential recruits. This assessment considers overall growth in the labor force, participation and unemployment rates, educational attainment and higher education enrollment, commuting patterns, wage rates, and occupational statistics. 4 Economic base. To understand the foundation and overall structure of the regional economy, we will examine local employment growth trends, industrial composition, and major employers in the area. Business climate & infrastructure. The team will assess issues affecting the area's appeal to major employers. This analysis will consider location; transportation, telecommunication, and other utility infrastructure (planned and existing); available sites; and incentives. 4 Entrepreneurial activity. TIP has a proven methodology for assessing entrepreneurial potential. We make a clear distinction between small business start-ups and companies with high growth potential. TIP will include an assessment of the region's entrepreneurial assets in four areas: (1) capital; (2) business services; (3) education & information programs; and (4) talent. 1.3 Trends I For any long-term planning process, an understanding of the underlying forces affecting economic vitality is critical. In concert with the economic analysis phase, the consulting team will facilitate a discussion of long-term trends at the regional, national and global levels and the opportunities they may provide Clearwater for economic growth and sustainability over the next decade. 1.4 Benchmarking I Our planning model includes developing profiles of the economic development efforts of an agreed upon number of benchmark communities or regions. Benchmarking can serve a number of purposes in economic development planning, including gauging progress (Where do I stand relative to my past performance?); understanding your position relative to your peers (Who is like me and how do 1 compare?); and identifying best practices (Who do 1 aspire to be like and what can I learn from them?). TIP will work with the project steering committee in determining which communities or regions would serve as the most appropriate benchmarks. Phase 2: Issue Identification and Prioritization [Opportunity] TIP defines economic development as the application of public resources to stimulate private investment. This definition recognizes that decisions on everything from transportation infrastructure to new workforce development initiatives must be informed by the response they will receive from the private sector. As a result, our approach is rooted in the needs of the client on the one hand, and by an in-depth knowledge of investment choices on the other. 2.1 Guiding principles I At TIP, we believe vision is inextricably linked to opportunity, with each informing the other. A clear vision should provide a framework that both guides the recommended actions and establishes priorities among available alternatives; the range of opportunities should suggest a larger vision. While our analyses serve as the foundation for this process, we pride ourselves on our ability to think creatively and to develop a vision that is supported by the data, but not driven by it. Our approach places a premium on well-informed decision-making, sound planning practices, and long-term commitment to a vision for the future. -fl ?strater;ie5 theory into practice [ 3 ] City of Clearwater, Florida ¦E0 r 2.2 Stakeholder engagement I Gathering input from stakeholders is an integral part of the TIP planning process. We can employ a variety of methods--from organizing "town hall" style meetings to facilitating targeted workshops to conducting web- based surveys-to gather and document the community's goals, objectives and vision for the future. For this work, we propose the following approach to gather input from area stakeholders: i Focus groups & interviews._ Our team has met with thousands of businesses and community leaders nationwide. Our process emphasizes individual interviews and focus groups conducted with regional business representatives, public officials, and economic development experts to gather information about land use patterns, regional economic trends, private sector opportunities and barriers, investment patterns, and other intelligence. 1 Interactive media. To expand participation in the process, we can provide direction in the use interactive media to engage relevant stakeholders. If desired, this could include preparation of a web-based survey to be distributed by the City of Clearwater along with a strategy for using new interactive media tools (e.g., Twitter, Facebook, project blog) to increase participation. We have found this technique effective for engaging stakeholders, gathering anecdotal information about assets and challenges, and increasing "buy-in" among the broader community. 4 Project website. If desired, TIP can create a website designed exclusively for this project. Access to this site can be limited to the project team, providing a tool for communication, or the site can be open to the public, providing a means of keeping the public informed about the study and gathering public comments. 2.3 Target industry & occupational analysis I The TIP team will employ a three-pronged approach to identifying the most suitable targets for Clearwater. Using a review of quantitative, qualitative, and strategic factors, this task will match the area's assets with national and international trends to identify the industries that represent the highest potential for relocation or expansion to the region. During this task, we will look at both existing targets and emerging industries. Data will be provided at the three-digit NAICS level or higher. Phase 2 Summary Tasks 2.1 Guiding principles 2.2 Stakeholder engagement 2.3 Target industry & occupational analysis 2.4 SWOT analysis 2.5 Opportunities analysis & workshop Deliverables • Guiding principals for economic development • Target industry recommendations & profiles • SWOT • Preliminary opportunities Srharh da uecemner • No planned trips • Deliverables: Target industry analysis and SWOT January • Trip #3 (Conduct guiding principles and opportunities workshop with steering committee) • Deliverables: Draft guiding principles and goals Unlike other methodologies which rely heavily on analyses of employment trends by industry, we use a workforce-centered approach that incorporates not only the region's current labor advantages but also its workforce-quality goals. We start by selecting occupations that meet predetermined thresholds with regard to earnings, industry staffing patterns and training/educational requirements. Using a crosswalk of occupations and industries, we identify potential target sectors that utilize these desired occupations. We then select those industries with favorable employment projections and capital -n sstrategle5 theory into practice [ 4 ] City of Clearwater, Florida N ¦ . ¦ investment trends. The end result of this workstep is a matrix of potential target industries and occupations that compare the labor requirements for the target industries with available labor, which allows a community to identify workforce training needs. Our quantitative analysis is supplemented by discussions with local economic development professionals and company executives from relevant industry sectors to gather information about current industry trends, supply chains, critical location factors, and other relevant issues. This qualitative approach will allow us to identify specific targets that may not be revealed in the data analysis and to pose questions for additional research. Finally, strategic considerations affecting the competitiveness of the target sectors will be identified based on 1) a review of relevant cluster initiatives already in progress in the region, 2) an understanding of state, national and global trends, and 3) the experience of the consulting team in evaluating target markets. From the list of potential targets that emerges, we choose those industries that best promote the strategic goals of the client. These target industries may enhance existing clusters or encourage the development of new clusters (aspirational targets). For each target, we create detailed profiles that include industry trends, strategic considerations, and site selection criteria. In addition, we will provide a contact database, in a format suitable for integrating into standard contact management systems, for each target industry identified in the planning process. The consulting team has developed numerous databases used by economic development clients for prospect marketing and development. Our most recent databases have included automotive suppliers and data centers. 2.4 SWOT analysis I The assessment forms the basis for the development of an analysis of the strengths, weaknesses, opportunities, and threats (commonly referred to as a SWOT analysis). This analysis, in turn, drives the subsequent Opportunity phase of the planning process. As part of this task, we will identify physical locations within Clearwater that represent primary opportunities for attraction and expansion. 2.5 Opportunities analysis & workshop I As part of this phase, we will facilitate an opportunities workshop with area leadership. The purpose of this workshop will be to engage in a focused discussion of potential strategies for the region. In identifying effective strategies, our team will consider a broad range of traditional and non-traditional opportunities arising from demographic shifts, changing consumer behaviors, large-scale government policy, changing resource availability, as well as regional assets. The value TIP adds in such strategy sessions is understanding how trends and assets translate into opportunities for our clients. Phase 3: Strategic Plan [Implementation] Based on the findings of the Opportunity phase, TIP will prepare a strategic plan to guide economic development efforts in Clearwater. The result of this phase will be a strategic plan that provides local leaders with the tools needed to strengthen the area's economic base. 3.1 Strategies I Based on the findings of the assessment, stakeholder input obtained during the Discovery phase, and the experience of the consulting team, TIP will assist in identifying effective strategies. We anticipate the resulting strategies will address the following areas: TPstrate0es theory into practice 15 1 City of Clearwater, Florida woo ¦ TALENT. Strategies will address issues related to the development ("growing your own"), retention, and recruitment of talent. Best practices for aligning workforce and education systems with the needs of the region's industry clusters will be emphasized. Engaging educational professionals at all levels will be a key element of success. o INDUSTRY & INNOVATION. The results of prior phases will drive strategies related to business recruitment, retention, and expansion. Emphasis will be placed on identifying creative strategies for addressing barriers and leveraging assets, as well as on the role of incentives. Encouraging innovation among existing companies, fostering entrepreneurship, and capitalizing on emerging technologies in the region will be central to this strategy. PLACE. Quality of place matters to both companies and individuals. Workers need places to live, amenities, and educational opportunities. Quality housing, good restaurants and good schools are not luxuries for an educated workforce-they are Phase 3 necessities. Communities that fail to provide a range of alternatives for Summary their residents will fall behind those that do. Strategies will emphasize the connection between quality of place and economic vitality. The result will be strategies that leverage the area's strengths and I Tasks opportunities to differentiate it from the regional and national competition. 3.1 Strategies 3.2 Marketing 3.2 Marketing strategy I Specific attention will be given to positioning 3.3 Implementation matrix Clearwater with decision makers in each target sector. Elements to be Deliverables considered in this task will include: . Network map • Strategic plan 4 clarifying the target audience(s), • Implementation matrix r developing a marketing theme and message, with an emphasis on the Schedule February relationship to existing brands and graphic identity, No planned trips • Deliverables: Draft marketing 4 identifying the most effective marketing channels (e.g., email, web, strategies social networking tools, traditional media, advertising, trade shows, March . Trip #4 (Discussion of the draft plan inbound marketing events, tours, and special events), with steering committee) + Deliverables: Draft strategic plan, 4 evaluating existing collateral material, including both electronic tools implementation matrix, and (websites, e-newsletters) and printed material (brochures, etc.), and April measures • Trip #5 (Roll out presentation) 4 understanding the role of public relations. Deliverables: Final report The results of this task will identify the most effective strategies for the City of Clearwater to connect with site selectors and decision makers in target industries. 3.3 Implementation matrix I Although it is often overlooked, a strong implementation strategy can be the key to bringing a plan to fruition. We understand that the implementation phase must be considered within the development of the plan itself. TIP will prepare an implementation matrix that addresses the following: -fl strategies theory into practice [ 6 ] City of Clearwater, Florida w ¦ , ¦ Actions. Using the findings prior tasks, we will develop a list of actions to support the strategies. This step typically includes identifying responsible parties and potential partnership opportunities, setting timelines, preparing budget estimates, and identifying potential funding sources. Priority. Identifying opportunities and the steps needed to make them reality is not enough. Setting priorities is perhaps the most important role that a solid implementation strategy should fulfill. Having clearly established priorities is essential for effective use of public resources. Measurement. An important piece of any strategic plan is developing the metrics by which success of the plan will be gauged. We can also advise staff on methodologies for collecting the needed data. FINAL REPORT & PRESENTATION Building public support for a plan is critical to its success. This phase will consist of making revisions to the deliverables, as well as obtaining final approval for the plan. This phase will also include a public "roll-out" of the plan. In our experience, this step has been critical to broader acceptance of the strategies. The outcome of the process will be clear: forward-thinking strategies providing a practical tool to guide economic development in Clearwater. TIP will provide a candid assessment of the economy, a clear picture of the community's greatest opportunities for growth, and a creative action plan for leveraging its competitive advantages. TIP's fee includes the cost of printing 10 bound copies of the final report The City will be responsible for the production expense associated with any additional copies requested. ] -n 5trategies theory into practice C 7 m ? a c ry? ' W i w o 8 ° o z o ? ° ° 0 o o 0 O N 4 E 0 f ?1' a I' fn a ? ? y ? Ln N N W V 0 I N H N Y rN C U a m VI v c v H N C CL) E fN/1 N Q c w eI E d ? ? N N ro a V_ N ? c Q O O 'L CL ul c w bD S c N N bA a+ C N ?a x 4-- E 0 b u c u Y W h co e-f N Ci Nt r-i r-I e I e 1 a--I d N ro a m f_ a a fa O ° ° C3 c Q o Q o o cc 0 0 co c 00 0 0 ° f LM O O n Lnn f Lrr V} V} N iA V c 0 0 O 4 N CC (D 06 co ? c o N v ?. v ? L 7 O N N a ? w N X w + fO w 17- p y _ N C c E v ' 0 E O ( 5 CL 4T 0 ? 2 v '^ n E N m v I N a N N `• `-' fv E i 41 41 ro N to ro Z n w u t4 O _ c ro ? 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