22-041 Applied Development Economics Inc. for Economic Development Strategy Data ConsultantEconomic Development Strategy Data Consultant
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PROFESSIONAL/CONSULTING SERVICES AGREEMENT
1. PARTIES
This Agreement is made by and between the City of Cupertino, a municipal corporation (“City”),
and Applied Development Economics, Inc. (“Contractor”), a Corporation for Economic
Development Strategy Data Consultant, and is effective on the last date signed below (“Effective
Date”).
2. SERVICES
Contractor agrees to provide the services and perform the tasks (“Services”) set forth in detail in
Scope of Services, attached here and incorporated as Exhibit A. Contractor further agrees to carry
out its work in compliance with any applicable local, State, or Federal order regarding COVID-19.
3. TIME OF PERFORMANCE
3.1 This Agreement begins on the Effective Date and ends on June 30, 2022 (“Contract
Time”), unless terminated earlier as provided herein. Contractor’s Services shall begin on the
effective date and shall be completed by June 30, 2022. The City’s appropriate department head
or the City Manager may extend the Contract Time through a written amendment to this
Agreement, provided such extension does not include additional contract funds. Extensions
requiring additional contract funds are subject to the City’s purchasing policy.
3.2 Schedule of Performance. Contractor must deliver the Services in accordance with the
Schedule of Performance, attached and incorporated here Exhibit B.
3.3 Time is of the essence for the performance of all the Services. Contractor must have
sufficient time, resources, and qualified staff to deliver the Services on time.
4. COMPENSATION
4.1 Maximum Compensation. City will pay Contractor for satisfactory performance of the
Services an amount that will based on actual costs but that will be capped so as not to exceed
$30,000.00 (“Contract Price”), based upon the scope of services in Exhibit A and the budget and
rates included in Exhibit C, Compensation attached and incorporated here. The maximum
compensation includes all expenses and reimbursements and will remain in place even if
Contractor’s actual costs exceed the capped amount. No extra work or payment is permitted
without prior written approval of City.
4.2 Invoices and Payments. Monthly invoices must state a description of the deliverable
completed and the amount due for the preceding month. Within thirty (30) days of completion of
Services, Contractor must submit a requisition for final and complete payment of costs and pending
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claims for City approval. Failure to timely submit a complete and accurate payment requisition
relieves City of any further payment or other obligations under the Agreement.
5. INDEPENDENT CONTRACTOR
5.1 Status. Contractor is an independent contractor and not an employee, partner, or joint
venture of City. Contractor is solely responsible for the means and methods of performing the
Services and for the persons hired to work under this Agreement. Contractor is not entitled to
health benefits, worker’s compensation, or other benefits from the City.
5.2 Contractor’s Qualifications. Contractor warrants on behalf of itself and its subcontractors
that they have the qualifications and skills to perform the Services in a competent and professional
manner and according to the highest standards and best practices in the industry.
5.3 Permits and Licenses. Contractor warrants on behalf of itself and its subcontractors that
they are properly licensed, registered, and/or certified to perform the Services as required by law
and have procured a City Business License, if required by the Cupertino Municipal Code.
5.4 Subcontractors. Only Contractor’s employees are authorized to work under this
Agreement. Prior written approval from City is required for any subcontractor, and the terms and
conditions of this Agreement will apply to any approved subcontractor.
5.5 Tools, Materials, and Equipment. Contractor will supply all tools, materials and
equipment required to perform the Services under this Agreement.
5.6 Payment of Benefits and Taxes. Contractor is solely responsible for the payment of
employment taxes incurred under this Agreement and any similar federal or state taxes. Contractor
and any of its employees, agents, and subcontractors shall not have any claim under this Agreement
or otherwise against City for seniority, vacation time, vacation pay, sick leave, personal time off,
overtime, health insurance, medical care, hospital care, insurance benefits, social security,
disability, unemployment, workers compensation or employee benefits of any kind. Contractor
shall be solely liable for and obligated to pay directly all applicable taxes, fees, contributions, or
charges applicable to Contractor’s business including, but not limited to, federal and state income
taxes. City shall have no obligation whatsoever to pay or withhold any taxes or benefits on behalf
of Contractor. Should any court, arbitrator, or administrative authority, including but not limited
to the California Public Employees Retirement System (PERS), the Internal Revenue Service or
the State Employment Development Division, determine that Contractor, or any of its employees,
agents, or subcontractors, is an employee for any purpose, then Contractor agrees to a reduction in
amounts payable under this Agreement, or to promptly remint to City any payments due by the
City as a result of such determination, so that the City’s total expenses under this Agreement are
not greater than they would have been had the determination not been made.
6. PROPRIETARY/CONFIDENTIAL INFORMATION
In performing this Agreement, Contractor may have access to private or confidential information
owned or controlled by the City, which may contain proprietary or confidential details the
disclosure of which to third parties may be damaging to City. Contractor shall hold in confidence
all City information provided by City to Contractor and use it only to perform this Agreement.
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Contractor shall exercise the same standard of care to protect City information as a reasonably
prudent contractor would use to protect its own proprietary data.
7. OWNERSHIP OF MATERIALS
7.1 Property Rights. Any interest (including copyright interests) of Contractor in any product,
memoranda, study, report, map, plan, drawing, specification, data, record, document, or other
information or work, in any medium (collectively, “Work Product”), prepared by Contractor in
connection with this Agreement will be the exclusive property of the City upon completion of the
work to be performed hereunder or upon termination of this Agreement, to the extent requested by
City. In any case, no Work Product shall be shown to any third-party without prior written approval
of City.
7.2 Copyright. To the extent permitted by Title 17 of the U.S. Code, all Work Product arising
out of this Agreement is considered “works for hire” and all copyrights to the Work Product will
be the property of City. Alternatively, Contractor assigns to City all Work Product copyrights.
Contractor may use copies of the Work Product for promotion only with City’s written approval.
7.3 Patents and Licenses. Contractor must pay royalties or license fees required for authorized
use of any third party intellectual property, including but not limited to patented, trademarked, or
copyrighted intellectual property if incorporated into the Services or Work Product of this
Agreement.
7.4 Re-Use of Work Product. Unless prohibited by law and without waiving any rights, City
may use or modify the Work Product of Contractor or its sub-contractors prepared or created under
this Agreement, to execute or implement any of the following:
(a) The original Services for which Contractor was hired;
(b) Completion of the original Services by others;
(c) Subsequent additions to the original Services; and/or
(d) Other City projects.
7.5 Deliverables and Format. Contractor must provide electronic and hard copies of the Work
Product, on recycled paper and copied on both sides, except for one single-sided original.
8. RECORDS
Contractor must maintain complete and accurate accounting records relating to its performance in
accordance with generally accepted accounting principles. The records must include detailed
information of Contractor’s performance, benchmarks and deliverables, which must be available
to City for review and audit. The records and supporting documents must be kept s eparate from
other records and must be maintained for four (4) years from the date of City’s final payment.
Contractor acknowledges that certain documents generated or received by Contractor in
connection with the performance of this Agreement, including but not limited to correspondence
between Contractor and any third party, are public records under the California Public Records
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Act, California Government Code section 6250 et seq. Contractor shall comply with all laws
regarding the retention of public records and shall make such records available to the City upon
request by the City, or in such manner as the City reasonably directs that such records be provided.
9. ASSIGNMENT
Contractor shall not assign, sublease, hypothecate, or transfer this Agreement, or any interest
therein, directly or indirectly, by operation of law or otherwise, without prior written consent of
City. Any attempt to do so will be null and void. Any changes related to the financial control or
business nature of Contractor as a legal entity is considered an assignment of the Agreement and
subject to City approval, which shall not be unreasonably withheld. Control means fifty percent
(50%) or more of the voting power of the business entity.
10. PUBLICITY / SIGNS
Any publicity generated by Contractor for the project under this Agreement, during the term of
this Agreement and for one year thereafter, will reference the City’s contributions in making the
project possible. The words “City of Cupertino” will be displayed in all pieces of public ity,
including flyers, press releases, posters, brochures, public service announcements, interviews and
newspaper articles. No signs may be posted, exhibited or displayed on or about City property,
except signage required by law or this Contract, without prior written approval from the City.
11. INDEMNIFICATION
11.1 To the fullest extent allowed by law, and except for losses caused by the sole and active
negligence or willful misconduct of City personnel, Contractor shall indemnify, defend and hold
harmless City, its City Council, boards and commissions, officers, officials, employees, agents,
servants, volunteers, and consultants (“Indemnitees”), through legal counsel acceptable to City,
from and against any and all liability, damages, claims, actions, causes of action, demands,
charges, losses, costs, and expenses (including attorney fees, legal costs, and expenses related to
litigation and dispute resolution proceedings) of every nature, arising directly or indirectly from
this Agreement or in any manner relating to any of the following:
(a) Breach of contract, obligations, representations, or warranties;
(b) Negligent or willful acts or omissions committed during performance of the Services;
(c) Personal injury, property damage, or economic loss resulting from the work or performance
of Contractor or its subcontractors or sub-subcontractors;
(d) Unauthorized use or disclosure of City’s confidential and proprietary Information;
(e) Claim of infringement or violation of a U.S. patent or copyright, trade secret, trademark,
or service mark or other proprietary or intellectual property rights of any third party.
11.2 Contractor must pay the costs City incurs in enforcing this provision. Contractor must
accept a tender of defense upon receiving notice from City of a third-party claim. At City’s request,
Contractor will assist City in the defense of a claim, dispute, or lawsuit arising out of this
Agreement.
11.3 Contractor’s duties under this section are not limited to the Contract Price, workers’
compensation payments, or the insurance or bond amounts required in the Agreement. Nothing in
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the Agreement shall be construed to give rise to an implied right of indemnity in favor of
Contractor against City or any Indemnitee.
11.4. Contractor’s payments may be deducted or offset to cover any money the City lost due to a
claim or counterclaim arising out of this Agreement, a purchase order, or other transaction.
11.5. Contractor agrees to obtain executed indemnity agreements with provisions identical to
those set forth here in this Section 11 from each and every subcontractor, or any other person or
entity involved by, for, with, or on behalf of Contractor in the performance of this Agreement.
Failure of City to monitor compliance with these requirements imposes no additional obligations
on City and will in no way act as a waiver of any rights hereunder.
11.6. This Section 11 shall survive termination of the Agreement.
12. INSURANCE
Contractor shall comply with the Insurance Requirements, attached and incorporated here as
Exhibit D, and must maintain the insurance for the duration of the Agreement, or longer as
required by City. City will not execute the Agreement until City approves receipt of satisfactory
certificates of insurance and endorsements evidencing the type, amount, class of operations
covered, and the effective and expiration dates of coverage. Failure to comply with this provision
may result in City, at its sole discretion and without notice, purchasing insurance for Contractor
and deducting the costs from Contractor’s compensation or terminating the Agreement.
13. COMPLIANCE WITH LAWS
13.1 General Laws. Contractor shall comply with all local, state, and federal laws and
regulations applicable to this Agreement. Contractor will promptly notify City of changes in the
law or other conditions that may affect the Project or Contractor’s ability to perform. Contractor
is responsible for verifying the employment authorization of employees performing the Services,
as required by the Immigration Reform and Control Act.
13.2 Labor Laws. Contractor shall comply with all labor laws applicable to this Agreement. If
the Scope of Services includes a “public works” component, Contractor is required to comply with
prevailing wage laws under Labor Code Section 1720 and other labor laws.
13.3 Discrimination Laws. Contractor shall not discriminate on the basis of race, religious
creed, color, ancestry, national origin, ethnicity, handicap, disability, marital status, pregnancy,
age, sex, gender, sexual orientation, gender identity, Acquired-Immune Deficiency Syndrome
(AIDS), or any other protected classification. Contractor shall comply with all anti-discrimination
laws, including Government Code Sections 12900 and 11135, and Labor Code Sections 1735,
1777, and 3077.5. Consistent with City policy prohibiting harassment and discrimination,
Contractor understands that harassment and discrimination directed toward a job applicant, an
employee, a City employee, or any other person, by Contractor or its employees or sub-contractors
will not be tolerated. Contractor agrees to provide records and documentation to the City on
request necessary to monitor compliance with this provision.
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13.4 Conflicts of Interest. Contractor shall comply with all conflict of interest laws applicable
to this Agreement and must avoid any conflict of interest. Contractor warrants that no public
official, employee, or member of a City board or commission who might have been involved in
the making of this Agreement, has or will receive a direct or indirect financial interest in this
Agreement, in violation of California Government Code Section 1090 et seq. Contractor may be
required to file a conflict of interest form if Contractor makes certain governmental decisions or
serves in a staff capacity, as defined in Section 18700 of Title 2 of the California Co de of
Regulations. Contractor agrees to abide by the City’s rules governing gifts to public officials and
employees.
13.5 Remedies. Any violation of Section 13 constitutes a material breach and may result in City
suspending payments, requiring reimbursements or terminating this Agreement. City reserves all
other rights and remedies available under the law and this Agreement, including the right to seek
indemnification under Section 11 of this Agreement.
14. PROJECT COORDINATION
City Project Manager. The City assigns Katy Nomura as the City’s representative for all purposes
under this Agreement, with authority to oversee the progress and performance of the Scope of
Services. City reserves the right to substitute another Project manager at any time, and without
prior notice to Contractor.
Contractor Project Manager. Subject to City approval, Contractor assigns Peter Cheng as its
single Representative for all purposes under this Agreement, with authority to oversee the progress
and performance of the Scope of Services. Contractor’s Project manager is responsible for
coordinating and scheduling the Services in accordance with the Scope of Services and the Schedule
of Performance. Contractor must regularly update the City’s Project Manager about the progress
with the work or any delays, as required under the Scope of Services. City written approval is
required prior to substituting a new Representative.
15. ABANDONMENT OF PROJECT
City may abandon or postpone the Project or parts therefor at any time. Contractor will be
compensated for satisfactory Services performed through the date of abandonment, and will be
given reasonable time to assemble the work and close out the Services. With City’s pre-approval
in writing, the time spent in closing out the Services will be compensated up to a maximum of ten
percent (10%) of the total time expended to date in the performance of the Services.
16. TERMINATION
City may terminate this Agreement for cause or without cause at any time. Contractor will be paid
for satisfactory Services rendered through the date of termination, but final payment will not be
made until Contractor closes out the Services and delivers the Work Product.
17. GOVERNING LAW, VENUE, AND DISPUTE RESOLUTION
This Agreement is governed by the laws of the State of California. Any lawsuits filed related to
this Agreement must be filed with the Superior Court for the County of Santa Clara, State of
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California. Contractor must comply with the claims filing requirements under the Government
Code prior to filing a civil action in court. If a dispute arises, Contractor must continue to provide
the Services pending resolution of the dispute. If the Parties elect arbitration, the arbitrator’s award
must be supported by law and substantial evidence and include detailed written findings of law
and fact.
18. ATTORNEY FEES
If City initiates legal action, files a complaint or cross-complaint, or pursues arbitration, appeal, or
other proceedings to enforce its rights or a judgment in connection with this Agreement, the
prevailing party will be entitled to reasonable attorney fees and costs.
19. THIRD PARTY BENEFICIARIES
There are no intended third party beneficiaries of this Agreement.
20. WAIVER
Neither acceptance of the Services nor payment thereof shall constitute a waiver of any contract
provision. City’s waiver of a breach shall not constitute waiver of another provision or breach.
21. ENTIRE AGREEMENT
This Agreement represents the full and complete understanding of every kind or nature between
the Parties, and supersedes any other agreement(s) and understanding(s), either oral or written,
between the Parties. Any modification of this Agreement will be effective only if in writing and
signed by each Party’s authorized representative. No verbal agreement or implied covenant will
be valid to amend or abridge this Agreement. If there is any inconsistency between any term,
clause, or provision of the main Agreement and any term, clause, or provision of the attachments
or exhibits thereto, the terms of the main Agreement shall prevail and be controlling.
22. INSERTED PROVISIONS
Each provision and clause required by law for this Agreement is deemed to be included and will
be inferred herein. Either party may request an amendment to cure mistaken insertions or
omissions of required provisions. The Parties will collaborate to implement this Section, as
appropriate.
23. HEADINGS
The headings in this Agreement are for convenience only, are not a part of the Agreement and in
no way affect, limit, or amplify the terms or provisions of this Agreement.
24. SEVERABILITY/PARTIAL INVALIDITY
If any term or provision of this Agreement, or their application to a particular situation, is found
by the court to be void, invalid, illegal, or unenforceable, such term or provision shall remain in
force and effect to the extent allowed by such ruling. All other terms and provisions of this
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Agreement or their application to specific situations shall remain in full force and effect. The
Parties agree to work in good faith to amend this Agreement to carry out its intent.
25. SURVIVAL
All provisions which by their nature must continue after the Agreement expires or is terminated,
including the Indemnification, Ownership of Materials/Work Product, Records, Governing Law,
and Attorney Fees, shall survive the Agreement and remain in full force and effect.
26. NOTICES
All notices, requests and approvals must be sent in writing to the persons below, which will be
considered effective on the date of personal delivery or the date confirmed by a reputable overnight
delivery service, on the fifth calendar day after deposit in the United States Mail, postage prepaid,
registered or certified, or the next business day following electronic submission:
To City of Cupertino
Office of the City Manager
10300 Torre Ave.
Cupertino, CA 95014
Attention: Katy Nomura
Email: KatyN@cupertino.org
To Contractor:
Applied Development Economics, Inc.
3527 Mt. Diablo Blvd., #248
Lafayette, CA 94549
Attention: Peter Cheng
Email: pcheng@adeusa.com
27. EXECUTION
The person executing this Agreement on behalf of Contractor represents and warrants that
Contractor has full right, power, and authority to enter into and carry out all actions contemplated
by this Agreement and that he or she is authorized to execute this Agreement, which constitutes a
legally binding obligation of Contractor. This Agreement may be executed in counterparts, each
one of which is deemed an original and all of which, taken together, constitute a single binding
instrument.
IN WITNESS WHEREOF, the parties have caused the Agreement to be executed.
CITY OF CUPERTINO CONTRACTOR
A Municipal Corporation
By By
Name Name
Title Title
Date Date
Douglas H. Svensson
President
Douglas H. Svensson
Mar 30, 2022
Jim Throop
City Manager
Jim Throop
Mar 30, 2022
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APPROVED AS TO FORM:
CHRISTOPHER D. JENSEN
Cupertino City Attorney
ATTEST:
KIRSTEN SQUARCIA
City Clerk
Date
Christopher D. Jensen
Mar 30, 2022
Exhibit A
SCOPE OF WORK
Task 1: Kick-off Meeting and Data Overview (March 15 through March 31)
The ADE team will kick off the project by meeting with City staff to review the study objectives
and priorities, and begin the data collection and identification of key stakeholders. In addition to
collecting documents and background studies for the most recent general plan and economic
development strategic plan, ADE will also request access to the City’s confidential sales tax data,
business license data, GIS data, internally produced economic studies, and other policy
documents and information will help inform strategic planning process. ADE will also discuss
whether City policy has any identified opportunity sites, and what uses those policies anticipate
for those sites.
In addition, the project team will request contact information on stakeholders and other interested
parties for the focus groups and other communications. As appropriate, ADE will request email
introductions to initiate outreach.
ADE will review the previously completed general plan and strategic plan, and consult the
subscription-based data application JobsEQ, in order to expand economic background findings to
a greater level of detail. This would include employment and occupational data, wages, market
demand, and projected growth.
Task 2: Economic Data Analysis (March 15 through April 29)
To inform the economic development strategic planning process and support the expected
collaborative work ahead, ADE will produce a series of technical analyses relevant to that
process.
Economic Base Analysis and Projections
As it has throughout its modern history, the Silicon Valley region has rapidly evolved over the
past decade, as business activity and wealth creation have seen tremendous growth during this
period. While technology-based companies have driven the region’s prosperity, the regional
economy has a variety of other business activity that draws from a diverse labor force.
Understanding the nature of these local employers and the dynamics of their relationships with
other businesses, both locally and regionally, is crucial to identifying the path forward for
Cupertino through the strategic plan. This task will help provide the context for the economic
development strategic plan in terms of the business development priorities.
Economic base analysis reveals an economic region’s basic economic drivers—those industries
that, through export, bring wealth into the region. It also identifies which support industries have
trade relationships with these economic drivers through sales of specialized supplies and
services.
The analysis will begin with identifying the local and regional economic drivers, those
businesses that are the primary source of job growth and wealth in the community. Identifying
these economic drivers works on the underlying assumption that the most important sources of
economic opportunity begin with the existing business base and the types of new relationships
and opportunities that can form through expansion of this base. Based on this analysis, ADE will
define export-oriented, related specialized suppliers, and local-serving industries.
ADE will conduct a regional trends analysis based on employment growth, industry
concentration, and income trends. The regional trends analysis will reveal potential directions for
the overall economy, and provide a basis for estimating potential job growth in the City and
region. ADE will examine the regional economy to provide a clear and quantifiable profile of
Cupertino’s role in the context of the Silicon Valley region.
The trends will be distilled down to the city level, and include comparisons between Cupertino
and other comparable cities. The economic trends analysis will identify potential industries that
are well represented elsewhere, but not necessarily in Cupertino. The base analysis will allow
ADE to analyze the market demand for commercial and industrial uses, and estimate the city’s
capacity to capture its share of growth.
ADE will create an economic profile of Cupertino that compares the economic strengths in terms
of industry employment size, concentration and growth, and how these indicators have changed
over time. The analyses for this task are structured to provide the full accounting of local and
regional economic trends, providing key findings necessary to form economic development
policies and strategies.
The economic base analysis findings will include projections of future employment growth in
Cupertino and Silicon Valley region using the five- and ten-year projections from JobsEQ, and at
the county and metropolitan level from California EDD. The future employment trends will
serve as the basis for estimating the anticipated building square footage demand by land use
category. This will be compared with commercial and industrial vacancy trends, as identified in
commercial brokerage reports.
Workforce Characteristics
Using data from the American Community Survey and JobsEQ, ADE will identify the labor
force characteristics and occupational staffing patterns in Cupertino. This task will identify the
extent to which the labor force for the local residents compares to the occupational needs of its
businesses. The findings will include measures such as educational attainment, race/ethnicity,
wage rates and household income. In addition, ADE will project the occupational growth, based
on the five- and ten-year employment projections from JobsEQ. ADE will also review the
existing general plan reports to identify how much residential growth Cupertino is currently
planning over the next decade or more.
Sales Tax Analysis
In order to identify sources of revenue generation for the City, ADE will request access to
Cupertino’s sales tax records. This will allow for a detailed examination of which business
categories account for taxable sales in Cupertino. If available, the data could also allow for more
detailed examination of retail trends at the neighborhood center and district level, in order to
better assess the tradeoffs that would accompany different types of growth for any identified
opportunity areas.
While this type of analysis would normally track with retail store sales, Cupertino also has a
large presence of non-retail businesses that can potentially serve as points-of-sale for taxable
business-to-business transactions. Using the sales tax data, ADE will look at specific categorical
trends to identify how expansion for different types of non-retail businesses might impact taxable
sales.
Business License Review
ADE will request access to the business license data from the City of Cupertino and use the
available information to come up with a distribution of the types of businesses represented within
the city. Depending on the type of data tracked by the business licenses, ADE will use the
information to identify patterns regarding establishment size, industry category, location, and/or
business closures. If available, ADE will review the businesses that have not renewed their
licenses, and use that information to analyze any identifiable patterns for businesses that have
closed or started up since the start of the COVID-19 pandemic.
Retail Market Analysis
ADE will review any previously completed retail market studies to gain an initial understanding
of the local-serving business base. In order to provide greater detail on store types at a more
granular level, ADE will further analyze Cupertino’s retail market so that the store category
detail might be more useful for identifying any underserved retail markets.
To analyze commercial market opportunities, ADE utilizes a proprietary retail demand model
that can identify and quantify household spending in over 30 different retail store categories and
over 50 product groupings. The model can also identify household spending for entertainment,
personal and professional services. ADE’s proprietary retail model is unique in that, in
calculating household consumer spending, ADE tracks spending by household income.
Households in different income brackets exhibit different spending patterns for the same retail
goods, and ADE’s retail modeling captures this differentiation. This approach does not
underestimate spending for lower income households, and does not over project spending by
higher income households.
In addition, ADE will also project how future demand potentially changes with the growth of e-
commerce.
The sales data would come from the City’s sales tax records. Because the industry data analysis
already proposes a detailed analysis of taxable business revenues in Cupertino, the results from
that analysis can readily be used for the more detailed retail analysis. ADE’s retail demand
model also applies a data adjustment that estimates nontaxable sales on items such as groceries
and prescription drugs.
Task 3: Post-Pandemic Trends (March 15 through May 16)
The COVID-19 pandemic created a once-in-a-generation economic disruption that continues to
impact broad swaths of the global economy, and create unevenly distributed impacts on local
communities. In order to understand how these disruptions have impacted Cupertino, ADE will
review the quarterly employment data at the city level to see how the economic recovery has
played out for different sectors.
In addition, ADE will conduct a literature review to see how the pandemic has impacted demand
for building space with the growth of remote work, and the greater demand for interpersonal
distancing. This will also include a review of e-commerce trends to see whether the large uptick
in e-commerce demand at the beginning of the pandemic has begun to reverse itself as brick-and-
mortar retail stores reopened. ADE will also review how broader public policies have evolved in
response to the pandemic, and how individual cities have responded to business needs as the
initial shock of the pandemic waned.
Task 4: Stakeholder Focus Groups (April 25 through May 6)
ADE will conduct three focus groups in venues of the City’s choosing, and ask for the City’s
assistance in identifying and contacting business owners, stakeholders, property owners, and
other interested parties. These focus groups will have a business orientation, and we anticipate
generally organizing the focus groups around the following themes:
Globally-focused businesses: This would include businesses that participate in the broader
Silicon Valley economy, and bring net wealth into Cupertino by serving regional, national, and
global markets. Their needs from the City will focus on how Cupertino can best address their
location and competitive needs.
Local-serving needs: This would include businesses that serve the local consumer base. These
businesses would primarily include retailers, local service providers, and hospitality sectors. The
focus group would address market challenges, opportunities, and economic development
initiatives that would help these businesses better operate in Cupertino. Participants in this focus
group can also include local residents.
Project development and real estate: This focus group would look at the commercial real
estate trends, and how Cupertino can best position itself in light of regional trends. This would
also include discussion on how the site selection needs of business might have changed as an
outcome of the pandemic, and how much of the current trends might be temporary and which
ones might more lasting.
Task 5: Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis (April 25 through
May 20)
Achieving long term economic vitality and prosperity depends on a community’s ability to create
an optimal and sustainable business and economic climate as well as a strong quality of life. This
task utilizes all of the information gained from the technical studies for this task and the
stakeholder outreach in the prior tasks order to identify and rank the significant findings, with an
eye towards how this information will help support the strategic planning process.
The SWOT analysis will have both external and internal factors. The external factors include the
broader industry trends and economic factors. This also includes the needs of businesses and
specific industry sectors. Generally, these factors are not influenced by City actions.
The internal factors look at the assets and liabilities at a more local level, and addresses actions
that the City can take to improve the business climate, capitalize on specific characteristics that
can make the community attractive to a business start-up, and ensuring that potential obstacles
within the City’s control are addressed.
Anticipated Completion Date: contingent on timing of stakeholder focus groups
Task 6: Summary Analysis (May 20 through June 15)
ADE will collect the findings for all of the studies, and provide a background report that can
directly feed into the strategic planning process. The report will include appendix tables, as well
as data sources and the raw data files used to generate the findings.
Exhibit B
SCHEDULE OF PERFORMANCE
Task Timeline/Completion
Date
Task 1: Project Kickoff and Data Overview 3/15/22 – 3/31/22
Task 2: Economic Data Analysis 3/15/22 – 4/29/22
Task 3: Post-Pandemic Trends 3/15/22 – 5/16/22
Task 4: Stakeholder Focus Groups 4/25/22 – 5/6/22
Task 5: SWOT Analysis 4/25/22 – 5/20/22
Task 6: Summary Analysis 5/20/22 – 6/15/22
Exhibit C
COMPENSATION
ADE proposes to complete the proposed Scope of Work for a fee not-to-exceed $30,000. This
includes the subscription cost for a three-month license to use the JobsEQ application. The
budget includes cost for professional staff and project expenses. The table below shows the
staffing and budget by task.
Svensson Cheng Production
Task $200.00 $150.00 $85.00 Expenses Total
Project Administration 4 0 0 $0 $800
Task 1: Project Kickoff and
Data Overview 0 8 0 $3,000 $4,200
Task 2: Economic Data
Analysis 0 96 0 $0 $14,400
Task 3: Post-Pandemic Trends 0 20 0 $0 $3,000
Task 4: Stakeholder Focus
Groups 12 0 0 $0 $2,400
Task 5: SWOT Analysis 4 20 0 $0 $3,800
Task 6: Summary Analysis 0 4 8 $120 $1,400
Total 20 148 8 $3,120 $30,000
Exh. D-Insurance Requirements for Design Professionals & Consultant Contracts
1
Form Updated Jan. 2022
Consultant shall procure prior to commencement of Services and maintain for the duration of the contract,
at its own cost and expense, the following insurance policies and coverage with companies doing business in
California and acceptable to City.
INSURANCE POLICIES AND MINIMUMS REQUIRED
1. Commercial General Liability (CGL) for bodily injury, property damage, personal injury liability for
premises operations, products and completed operations, contractual liability, and personal and
advertising injury with limits no less than $2,000,000 per occurrence (ISO Form CG 00 01). If a
general aggregate limit applies, either the general aggregate limit shall apply separately to this
project/location (ISO Form CG 25 03 or 25 04) or it shall be twice the required occurrence limit.
a. It shall be a requirement that any available insurance proceeds broader than or in excess of the
specified minimum insurance coverage requirements and/or limits shall be made available to the
Additional Insured and shall be (i) the minimum coverage/limits specified in this agreement; or (ii) the
broader coverage and maximum limits of coverage of any insurance policy, whichever is greater.
b. Additional Insured coverage under Consultant's policy shall be "primary and non-contributory,"
will not seek contribution from City’s insurance/self-insurance, and shall be at least as broad as ISO
Form CG 20 10 (04/13).
c. The limits of insurance required may be satisfied by a combination of primary and umbrella or
excess insurance, provided each policy complies with the requirements set forth in this Contract. Any
umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage
shall also apply on a primary basis for the benefit of City before the City’s own insurance or self-
insurance shall be called upon to protect City as a named insured.
2. Automobile Liability: ISO CA 00 01 covering any auto (including owned, hired, and non-owned
autos) with limits no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation: As required by the State of California, with Statutory Limits and
Employer’s Liability Insurance of no less than $1,000,000 per occurrence for bodily injury or disease.
Not required. Consultant has provided written verification of no employees.
4. Professional Liability for professional acts, errors and omissions, as appropriate to Consultant’s
profession, with limits no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. If written
on a claims made form:
a. The Retroactive Date must be shown and must be before the Effective Date of the Contract.
b. Insurance must be maintained for at least five (5) years after completion of the Services.
c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form
with a Retroactive Date prior to the Contract Effective Date, the Consultant must purchase
“extended reporting” coverage for a minimum of five (5) years after completion of the Services.
EXHIBIT D
Insurance Requirements
Design Professionals & Consultants Contracts
Exh. D-Insurance Requirements for Design Professionals & Consultant Contracts
2
Form Updated Jan. 2022
OTHER INSURANCE PROVISIONS
The aforementioned insurance shall be endorsed and have all the following conditions and provisions:
Additional Insured Status
The City of Cupertino, its City Council, officers, officials, employees, agents, servants and volunteers
(“Additional Insureds”) are to be covered as additional insureds on Consultant’s CGL and automobile
liability policies. General Liability coverage can be provided in the form of an endorsement to Consultant’s
insurance (at least as broad as ISO Form CG 20 10 (11/ 85) or both CG 20 10 and CG 20 37 forms, if later
editions are used).
Primary Coverage
Coverage afforded to City/Additional Insureds shall be primary insurance. Any insurance or self-insurance
maintained by City, its officers, officials, employees, or volunteers shall be excess of Consultant’s insurance
and shall not contribute to it.
Notice of Cancellation
Each insurance policy shall state that coverage shall not be canceled or allowed to expire, except with written
notice to City 30 days in advance or 10 days in advance if due to non-payment of premiums.
Waiver of Subrogation
Consultant waives any right to subrogation against City/Additional Insureds for recovery of damages to the
extent said losses are covered by the insurance policies required herein. Specifically, the Workers’
Compensation policy shall be endorsed with a waiver of subrogation in favor of City for all work performed
by Consultant, its employees, agents and subconsultants. This provision applies regardless of whether or not
the City has received a waiver of subrogation endorsement from the insurer.
Deductibles and Self-Insured Retentions
Any deductible or self-insured retention must be declared to and approved by the City. At City’s option, either:
the insurer must reduce or eliminate the deductible or self-insured retentions as respects the City/Additional
Insureds; or Consultant must show proof of ability to pay losses and costs related investigations, claim
administration and defense expenses. The policy shall provide, or be endorsed to provide, that the self-insured
retention may be satisfied by either the insured or the City.
Acceptability of Insurers
Insurers must be licensed to do business in California with an A.M. Best Rating of A-VII, or better.
Verification of Coverage
Consultant must furnish acceptable insurance certificates and mandatory endorsements (or copies of the policies
effecting the coverage required by this Contract), and a copy of the Declarations and Endorsement Page of the
CGL policy listing all policy endorsements prior to commencement of the Contract. City retains the right to
demand verification of compliance at any time during the Contract term.
Subconsultants
Consultant shall require and verify that all subconsultants maintain insurance that meet the requirements of
this Contract, including naming the City as an additional insured on subconsultant’s insurance policies.
Higher Insurance Limits
If Consultant maintains broader coverage and/or higher limits than the minimums shown above, City shall be
entitled to coverage for the higher insurance limits maintained by Consultant.
Adequacy of Coverage
City reserves the right to modify these insurance requirements/coverage based on the nature of the risk, prior
experience, insurer or other special circumstances, with not less than ninety (90) days prior written notice.
Economic Development Strategy Data
Consultant
Final Audit Report 2022-03-30
Created:2022-03-29
By:City of Cupertino (webmaster@cupertino.org)
Status:Signed
Transaction ID:CBJCHBCAABAAeyeNoxPqWPexlFfIjnpWo9T9oGAgVeUk
"Economic Development Strategy Data Consultant" History
Document created by City of Cupertino (webmaster@cupertino.org)
2022-03-29 - 6:35:36 PM GMT- IP address: 35.229.54.2
Document emailed to Araceli Alejandre (aracelia@cupertino.org) for approval
2022-03-29 - 6:38:52 PM GMT
Document approved by Araceli Alejandre (aracelia@cupertino.org)
Approval Date: 2022-03-29 - 6:43:30 PM GMT - Time Source: server- IP address: 73.170.27.253
Document emailed to Christopher D. Jensen (christopherj@cupertino.org) for signature
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Document e-signed by Christopher D. Jensen (christopherj@cupertino.org)
Signature Date: 2022-03-29 - 6:44:38 PM GMT - Time Source: server- IP address: 136.24.42.212
Document emailed to Douglas H. Svensson (dsvensson@adeusa.com) for signature
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Signature Date: 2022-03-30 - 5:39:41 PM GMT - Time Source: server- IP address: 69.181.139.14
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Signature Date: 2022-03-30 - 5:56:16 PM GMT - Time Source: server- IP address: 64.165.34.3
Document emailed to Kirsten Squarcia (kirstens@cupertino.org) for signature
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Agreement completed.
2022-03-30 - 6:00:57 PM GMT