90-022 Lynn Sedway & Associates, Economic Consulting Services to Goals Committee t pGREEMERI'
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41; Q CIty OF CUPERTINO. �rW 4 SEDWAY
\ °oap°r P;.O. Box 580 (t rES
!\ aped Cupertino, CA 95015 & AS$O
-- 252-4505 N923
BY THIS AGREEMENT made and entered into on the 30th day of November 1990
by and between the CITY OF CUPERTINO (Hereinafter referred to as CITY) and
Name (1) Sedway and Associates (2)
Address 4 J mbarcadero Ctr City San Francisco Zip CA Phone
(Hereinafter referred as CONTRACTOR), in consideration of their mutual covenants, the parties hereto agree as follows:
CONTRACTOR Shall provide or furnish the following specified services and/or materials:
Consulting work described in the scope of services dated November
29 , 1990 (Exhibit A) .
EXHIBITS:The following attached exhibits hereby are made part of this Agreement:
Exhibit A - Scope--of Services
Exhibit B - Responsibility of Consultant and Indemnification of City
( replaces Hold Harmless deleted below) .
TERMS The services and/or materials furnished under this Agreement shall commence on November 30 . 1 990
and shall be completed before January 16 , 1991 , unless another date is mutually
agreed upon .
COMPENSATION For the full performance of this Agreement,CITY shall pay CONTRACTOR: an amount not to
exceed $12 ,000 . City will pay Contractor not more than $500 to attend one
GENERAL TERMS AND CONDITIONSmeeting . Additional work must be authorized in
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before commencing any services under this agreement.Said Certificate shall be subject to the approval of City's
Director of Administrative Services.
Non-Discrimination. No discrimination shall be made in the employment of persons under this agreement because of
the race, color, national origin,ancestry, religion or sex of such person.
Interest of Contractor. It is understood and agreed that this agreement is not a contract of employment in the sense
that the relation of master and servant exists between City and undersigned.At all times Contractor shall be deemed to
be an independent contractor and Contractor is not authorized to bind the City to any contracts or other obligations in
executing this agreement.Contractor certifies that no one who has or will have any financial interest under this
agreement is an officer or employee of City.
Changes. This agreement shall not be assigned or transferred without the written consent of the City. No changes or
variations of any kind are authorized without the written consent of the City.
CONTRACT CO.ORDINATOR and representative for CITY shall be:
NAME \?CAM$ " Cff1A4
A /tt\ DEPARTMENT TVIAA V��
�1.4-
This Agreement shall become effective upon its execution by CITY, in witness thereof,the parties have executed this
Agreement the day and year first written above.
CONTR•. TOR: CITY cF r UP RTIC 0:
B /, // ey 41 2'114_
Title d Title 1� L 0.(/ ,t.d
Soc. Sec. - 0
APPROVALS
J Depar ent Head Date City r / / Date
White-City Clerk Copy Green-Finance Canary-Contractor's Coov Pink-Receivina Coov Goldenrod-Department Coov
• 13.rcri-70 11.00 OCOwnt IX n0000 S MI-CO COC
•
EXHIBIT A
(sec.Iway &Associates)
Real Estate F, nunir. Lynn (.Sed way,CRF:
November 29, 1990
Mr. Bob Cowan
Community Development
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014 •
Dear Mr Cowan:
We have enjoyed discussing the City of Cupertino's plans for Stevens Creek Boulevard and the
concern regarding the potential impact from the proposed expansion of Valleo Fashion Plaza.
Per our recent conversations and your memorandum, Sedway & Associates (S&A) is pleased to
submit this revised proposal to provide consulting services analyzing the potential effect of the
expansion of Vallco Shopping Center on existing and prospective retail located along Stevens
Creek Boulevard. The study will analyze whether the Vallco expansion will complement, detract
from, or be a neutral influence on existing and proposed retail activities on the Grand Boulevard.
The City of Cupertino's plan to create a Grand Boulevard on Stevens Creek will greatly enhance
this already strong retail component of the City. Thus, the approximately 535,000 square feet
of proposed expansion space at Vallco Fashion Plaza requires careful analysis due to the potential
( impact on existing and prospective retailers located on Stevens Creek Boulevard. Sedway &
Associates is uniquely qualified to provide the necessary consulting services and we look forward
to the opportunity to assist Cupertino with this important project.
SCOPE OF SERVICES
A summary of our proposed scope of services follows below.
Task One: Site Aualvsis
In this section we will analyze the study area to identify potential opportunities and constraints
to retail potential. In addition, a general analysis of the existing retail in the study area will be
prepared.
•
Task 1.9 Site Analysis: The consultant team will visit the Stevens Creek Boulevard study area
and will review physical features of the area, including visibility, access, traffic circulation
patterns, and other physical features with potential impact on retail possible impact on Stevens
Four Ernhareadero Center Tel (415)781-8900
auhe 790 Fax(4151 781-RI IR
a.ar rr90 11.00, OCDWrIT G n0006I rrr o pOJ
Mr. Bob Cowan
November 29, 1990
Page 2
Creek Boulevard. Sites to be visited on this tour will include existing retail centers along Stevens
Creek Boulevard, Vallco Fashion Plaza, and nearby competitive retail centers and strectfront
concentrations which are outside the City limits that impact the potential of the Grand Boulevard,
including regional malls such as Stanford and Valley Fair. Particularly strong and weak retail
uses in the Cupertino area will be identified on this tour.
Task 1.1 Description of Existing Retail on Stevens Creek Boulevard: Based on the site analysis
as well as an analysis of existing retail on Stevens Creek Boulevard provided by the City, S&A
will provide a brief description of the existing retail uses on Stevens Creek Boulevard. A general
evaluation of strong and weak retail uses by type of store and type of retail center will also be
provided. The issue of current tenants on Stevens Creek Boulevard which may potentially be
attracted to the expanded Vallco Fashion Plaza will be addressed in this task.
Task Two; Summary Demographic Analysis
This section will include a summary profile of the market area's demographic trends and
projections.
Task 2.0 Definition of the Market Area: S&A will examine the geography and market dynamics
to determine likely primary and secondary trade areas for Stevens Creek Boulevard.
Task 2.1 Demand Analysis: S&A will examine 1990 and 1995 demographics in the Stevens
Creek Boulevard trade area, including number of residents and households, incomes, household
sizes, age, and employment, to identify likely sources of retail demand.
Task Three; Retail Market Assessment
In this section we will evaluate the need and potential for additional retail space in the study area
by type of store and type of center, based upon market area demographics and a competitive
supply analysis. In this way we will determine the ability of the market area's residents and
workers to support additional retail space.
Task 3.0 Aggregate Retail Demand Analysis; Included in this section will be an estimate of
current market area retail sales by category of goods. This will be compared with estimates of
spending by local residents and workers to determine net sales leakage from (or attraction to) the
market area.
• 1 • e,- " " " " r • An.1 ' : An assessment of the relative strength of the competition
in the market area relative to the existing retail on Stevens Creek Boulevard, including a brief
11/'Cr70 11•01 .7CDwnr C. 11a..700111T= OO} •
Mr. Bob Cowan
November 29, 1990
Page 3
assessment of each center or area, existing and proposed, will be produced. The competitive
analysis will evaluate the competition's location, size, and quality relative to the existing centers
and potential new retail development along Stevens Creek Boulevard.
Task 3.2 Supportable Retail Space Analysis: Based on a comparison between supply and
demand, conclusions will be developed regarding the potential support for the proposed Stevens
Creek Boulevard expansion, assuming that the proposed Vallee expansion is completed by 1995.
" This summary will identify the retail uses which existing and proposed retail space are most and
least able to satisfy. These estimates will then be translated into supportable square feet, by
general merchandise categories, based on reasonable estimates of market area sales capture. This
L.
analysis will be utilized to assess the relative potential of various types of retail complexes: i.e.,
community, neighborhood, and specialty centers, as well as free-standing stores.
Task Four: Impact Analvsja
In this section, S&A will generally define the potential impact on the existing and proposed retail
along Stevens Creek Boulevard from the proposed expansion of Vallco Fashion Plaza. Since the
tenant mix for the expansion of Vallee is still undefined, several potential scenarios will be
explored based on different types of potential anchor tenants. These scenarios will include hard
goods retailers such as IKEA or Target and soft goods retailers such as Lord &Taylor, Dillard's,
or the May Company. Rather than focussing on specific retailers, the study will use generic
descriptions of store types and categories, citing several examples of store types and categories
that arc discussed.
•
Task 4.0 Merchandise Analysis: Based on the leakage analysis conducted in Task Three, an
analysis of the potential impact on general merchandise categories will be prepared. Included
in this analysis will be a description of specific centers and areas along Stevens Creek Boulevard
which may be particularly impacted by the proposed expansion.
Task 4.1 Store Type Analysis: General types of stores which will likely be attracted to the
expanded Vallee Fashion Plaza will be projected. Included in this analysis will be identification
of existing tenants on Stevens Creek Boulevard which could eventually be attracted to Vallee and
the types of new stores which may potentially be attracted to Stevens Creek Boulevard. The
potential unfavorable and complementary, synergistic impacts on different types of existing stores
on Stevens Creek Boulevard will also be assessed.
TIME FRAME AND PROFESSIONAL PEES
The study findings will be seminauz d in a narrative report. The report will be completed
within four to six weeks from our receipt of your written authorization to proceed, assuming we
4 - ,.a. r. ev r r•ev acvwnr a ncooc a n-r 0 000
Mr. Bob Cowan
November 29, 1990
Page 4
receive the information we have requested from the City and Westfield Development within five
days of contract signing. Information to be furnished by Westfield Development should be
channeled through the City to S&A, since this study is being conducted for the City. (Due to
the holidays, we anticipate that the study will take closer to six weeks to complete.)
Professional fees for the study will be hourly consulting services plus reimbursable expenses up
to $12,000. Professional fees include preparation of the draft and final report. The draft report
will be an opportunity for minor revisions to correct factual or typographical errors. Requests
for changes beyond factual or typographical errors would be charged on an hourly basis at our
standard professional rates, which are attached. The contract includes two copies each of the
draft report and final report. Reimbursable expenses include travel and communications costs,
suck,} as mileage, parking, telephone, facsimile machine use, and delivery service, as well as
customized demographic data which is not available in-house. Attendance at any meetings would
be additional and billed at our hourly rates.
As we discussed, there will be a number of materials which the City will provide in order to
maximize the efficiency of the limited budget and time frame for this project. The following
materials arc requested:
1. Westfield anchor tenant market study, or the draft report and data if the final
report is not complete;
2. Westfield sales per square foot by type of store and in aggregate: 1987, 1988,
1989;
3. City retail sales data by type of store including store name, square feet, total sales,
' sales per square foot: 1987, 1988, 1989;
4. Clarification of Grand Boulevard project scope and timing. This would include
a definition of key project areas and approximate square footage to be added and
an approximate time frame for the project.
To further maximize budgetary efficiency, population and employment projections will be
purchased from Urban Decision Systems,a nationally recognized demographic projection services
company.
For your convenience, you may sign and return the enclosed copy of this letter to serve as a
contract and written authorization to proceed. We will bill on a monthly basis up to the total
contract amount. Services beyond the scope of this contract will be charged at our current
professional rates. Sedway & Associates reserves the right to charge interest on bills not paid
within 15 days at the rate of 18 percent per annum. In the event of a legal dispute, attorneys'
fees will be paid by the non-prevailing party.
2.yrcrG0 31.00 DCDWfIT Oc IIOGOG II1TC0 000
Mr. Bob Cowan
November 29, 1990
Page 5
Our current professional hourly rates are;
Lynn M. Sedway, President $125.00 per hour
Senior Associates $ 90.00 per hour
Associates $ 70.00 per hour
Research Associates $ 60.00 per hour
Research Assistants $ 50.00 per hour
Word Processors $ 30.00 per hour
We look forward to working with you on this important job. Please let us know if you have
suggestions regarding the scope of work and/or any questions.
Sincerely,
Lynn M. Sedway, CRE Matthew H. Field
President Associate
C.e"f'//ytedS
Edward A. Cohen
Associate
LMS/IvfHF:aw
Enclosure
Authorization to Proceed:
Appmved for City of Cupertino Date
a:'propowlkupenin.p03
EXHIBIT B
Responsibility of Consultant and Indemnification of City
The Consultant covenants and agrees to take and assume all responsibility for the services'
rendered in connection with this Agreement. The Consultant shall bear all losses and damages
directly or indirectly resulting to him, the Agency, or the City of Cupertino, on account of any
negligent act and/or omission in the performance or character of the services rendered pursuant
to this Agreement. The Consultant shall indemnify and save harmless the Agency and the City
of Cupertino and its respective members, officers, agents, and employees, from all claims, loss,
damage, injury and liability of every kind, nature and description, directly or indirectly, arising
from the negligent performance of this Agreement, save and except the negligence of the Agency
and the City of Cupertino, and from any and all claims, loss, damage, injury and liability,
howsoever the same may be caused, resulting directly or indirectly from the negligent
performance of the services covered by the Agreement, save and except the negligence of the
Agency and the City of Cupertino.
Accepted by the City of Cupertino: I uP.A.,i4-\
Accepted by Sedway & Associates;,.. L1• ' d�
c:\misc\ed-0b.d26
Extursn B
Responsibility of Consultant and Indemnification of City
The Consultant covenants and agrees to take and assume all responsibility for the services
rendered in connection with this Agreement. The Consultant shall bear all losses and damages
directly or indirectly resulting to him, the Agency, or the City of Cupertino, on account of any
negligent act and/or omission in the performance or character of the services rendered pursuant
to this Agreement. The Consultant shall indemnify and save harmless the Agency and the City
of Cupertino and its respective members, officers, agents, and employees, from all claims, loss,
damage, injury and liability of every kind, nature and description, directly or indirectly, arising
from the negligent performance of this Agreement, save and except the negligence of the Agency
and the City of Cupertino, and from any and all claims, loss, damage, injury and liability,
howsoever the same may be caused, resulting directly or indirectly from the negligent
performance of the services covered by the Agreement, save and except the negligence of the
Agency and the City of Cupertino.
Accepted by the City of Cupertino: U_ G1U/Ui-\
Accepted by Sedway & Associates:
G
c:\misc\ed-4b.d26
•0
AGREEMENT go--c.c-3�(a/ ut�N1
?VI?, gsoa oo 3
AVMCITY OF CUPERTINO 'ora'' �e 7`990
40
21 " P.O.cl �Q�W Box 580 ") , N
Cupertino, CA 95015 �4, ,,,
252-4505 NO. 0 2 2 S It
BY THIS AGREEMENT made an,d entered into on the 7 day of June 19 90
by and between the CITY OF CUPERTINO (Hereinafter referred to as CITY) and
Name (1) Lynn Sedway & Assoc . (2)
Address 4 Embarcarinro City San 7ranci Gen Zip 94111 Phone 41.5- /ii1-8900
(Hereinafter referred as CONTRACTOR), in consideration of their mutual covenants, the parties hereto agree as follows:
CONTRACTOR Shall provide or furnish the following specified services and/or materials:
Economic consulting services for Goals Committee, not to exceed $8 , 500
as described in Exhibit A. Presentor will be Lynn Sedway.
EXHIBITS:The following attached exhibits hereby are made part of this Agreement:
Exhibit A
TERMS The services and/or materials furnished under this Agreement shall commence on Jiinp 7 1 2011
and shall be completed before sar,r.mner 1 1000
COMPENSATION For the full performance of this Agreement,CITY shall pay CONTRACTOR:
GENERAL TERMS AND CONDITIONS
Hold Harmless. Contractor agrees to save and hold harmless the City, its officers,agents and employees from any
all damage and liability of every nature, including all costs of defending any claim,caused by or arising out of the ertt
-
formance of this agreement.City shall not be liable for acts of Contractor in performing services described herein. , ,
Insurance. Should the City require evidence of insurability Contractor shall file with City a Certificate of Insurance ' i1,
before commencing any services under this agreement.Said Certificate shall be subject to the approval of City's ";ice
Director of Administrative Services.
Non-Discrimination. No discrimination shall be made in the employment of persons under this agreement because of
the race,color, national origin,ancestry, religion or sex of such person.
Interest of Contractor. It is understood and agreed that this agreement is not a contract of employment in the sense
that the relation of master and servant exists between City and undersigned.At all times Contractor shall be deemed to
be an independent contractor and Contractor is not authorized to bind the City to any contracts or other obligations in
executing this agreement.Contractor certifies that no one who has or will have any financial interest under this
agreement is an officer or employee of City. •
Changes. This agreement shall not be assigned or transferred without the written consent of the City. No changes or
variations of any kind are authorized without the written consent of the City.
CONTRACT�/ CO-ORDINATOR and representative for CITY shall be: �j
NAME '(j —I�{ DEPARTMENT D2 4,t 9t
This Agreement shall become effective upon its execution by CITY, in witness thereof,the parties have executed this
Agreement the day and year first written above.
CONTR,CTOR: CITY OF CUPERTINO:
y
BY,,--` - -✓4 ' . , , By 2O& (2r C-OwUSW
Title L JP,gijr, .P -/,* Title hi l2 Co INA MV iv(1-7. DruewF Me=N
Soc. Sec.#
APPROVALS
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Depa(t ent ead n Date cap / �/, D / /p®
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EXHIBIT A
(Sedway &Associates)
Re.d Mate Ke(numita -.
city of Cupertino
Economic Conditions Protect
Outline of Proieot Stork Plan
1) Market Overviews
-- For the office and industrial sectors, s&A will examine general
market indicators., including employment, inventory, vacancy and
absorption. levels. ..We.. will use information .provided, by the City,,. ,.,,,,
publications and analyses that are already 'in. our files and a
limited number of interviews with local industry leaders, citizen
representatives and public officials.
-- For the retail sector, S&A will analyze existing retail trade.
To help determine Cupertino's retail potential, current sales in
the City will be compared with sales throughout Santa Clara County.
We will make general recommendations pertaining to the potential
for expansion of the retail sector, addressing opportunities for
various types of centers: regional, promotional, community and
neighborhood. -
-- For the hotel industry, S&A will provide general market
information as it relates to Cupertino.
. 2) _Economic Develccment Potential and constraints
Possible constraints to growth will be analyzed based on City
documents and interviews S&A conducts with local industry leaders,
citizens and public officials. Key issues to be addressed in
interviews are concerns about housing availability, transportation
and traffic and Cupertino's business climate. We will also discuss
industry growth plans. Further, the City's business climate will
be generally analyzed and compared to Santa Clara County. For
example, land availability and prices will be assessed for both
jurisdictions.
hmrfmbarcndcru Genter Tel (415(78]-891n1
Suite 720 Fax(415)7818118
.San Francisco
Calif .rnia 94111
page 2 of 2
3) Fiscal Impact Analyses
Based upon tax rate and expense data provided by the City, S&A will
use financial models to analyze the fiscal impact or alternative
commercial land uses. Included will be an analysis of the
contribution of residents, local employees and industry to sales
tax revenues. (The cost of providing city services for different
types of uses wiil . be.. furnished by the city, per the RFF. )
rr4pentation fletbedolecty
Oral presentations at two citizen meetings supported by summary
visuals, including tables and graphs, and a short_memorandum,
Pr$sentati0n Dates
Wednesday Evening, June 20, 1990
Wednesday Evening, June 27, 1990
file; emc\cup06. 90a