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01-0507_ALFRED GOBAR ASSOCIATES_Personal Services AgreementPERSONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 7th day of May, 2001, by and between the Community Redevelopment Agency (CRA) of San Juan Capistranc (hereinafter referred to as the "Agency") and Alfred GobarAssociates (hereinafter referred to as "Consultant"). RECITALS: WHEREAS, Agency desires to retain the services of Consultant regarding the Agency's proposal to conduct an economic and fiscal impact study of a proposed Home Depot to be located on the Lower Rosan site along the north side of Stonehill Drive west of Camino Capistrano; and WHEREAS, Consultant is qualified by virtue of experience, training, education and expertise to accomplish such services. NOW, THEREFORE, Agency and Consultant mutually agree as follows: Section 1. Scope of Work. The scope of work to be performed by Consultant shall consist of those tasks as set forth in Exhibit "A," attached and incorporated herein by reference. Consultant warrants that all of its services shall be performed in a competent, professional and satisfactory manner and in accordance with the prevalent standards of its profession. Section 2. Term. This Agreement shall commence on the effective date of this Agreement and services required hereunder shall be completed by no later than December 31, 2001. Section 3. Compensation. Total compensation forthe scope of services for this Project shall not exceed thirteen -thousand, five -hundred dollars and no cents ($13,500.00), as set forth in Exhibit "B," attached and incorporated herein by reference. Rz0004hd-gobaracs.wpd page 1 of 7 revised to Jan. 25, 2000 3.2 Rate Schedule. The services shall be billed to the Agency at the hourly rate set forth in Exhibit "C," attached and incorporated herein by reference. Included within the compensation are all the Consultant's ordinary office and overhead expenses incurred by it, its agents and employees, including meetings with the Agency representatives and incidental costs to perform the stipulated services. Submittals shall be in accordance with Consultant's proposal. 3.3 Method of Payment. Consultant shall submit monthly invoices based on total services which have been satisfactorily completed and specifying a percentage of projected completion for approval by the Agency. The Agency will pay monthly progress payments based on approved invoices in accordance with this Section. For extra work not part of this Agreement, a written authorization from Agency is required prior to Consultant undertaking any extra work. 3.4 Records of Expenses. Consultant shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement. These records will be made available at reasonable times to Agency. Section 4. Independent Contractor. It is agreed that Consultant shall act and be an independent contractor and not an agent or employee of Agency, and shall obtain no rights to any benefits which accrue to Agency's employees. Section 5. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for Agency to enter into this Agreement. Consultant shall not contract with any other entity to perform the services required without written approval of the Agency. This Agreement may not be assigned, voluntarily or by operation of law, without the priorwritten approval of the Agency. If Consultant is permitted to subcontract any part of this Agreement by Agency, Consultant shall be responsible to Agency for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and Agency. All persons engaged in the work will be considered employees of Consultant. Agency will deal directly with and will make all payments to Consultant. RZ0004hd-gobaracs.wpd page 2 of 7 revised to Jan. 25, 2000 Section 6. Changes to Scope of Work. In the event of a change in the Scope of Work provided for in the contract documents as requested by the Agency, the Parties hereto shall execute an addendum to this Agreement setting forth with particularity all terms of the new agreement, including but not limited to any additional Consultant's fees. Section 7. Familiarity with Work and Construction Site. By executing this Agreement, Consultant warrants that: (1) it has investigated the work to be performed; (2) it has investigated the proposed construction site, including the location of all utilities, and is aware of all conditions there; and (3) it understands the facilities, difficulties and restrictions of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by Agency, it shall immediately inform Agency of this and shall not proceed with further work under this Agreement until written instructions are received from the Agency. Section 8. Time of Essence. Time is of the essence in the performance of this Agreement. Section 9. Compliance with Law. Consultant shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. Section 10. Conflicts of Interest. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of the services contemplated by this Agreement. No person having such interest shall be employed by or associated with Consultant. Section 11. Copies of Work Product. At the completion of the contract period, Consultant shall have delivered to Agency at least one (1) copy of any final reports and architectural drawings containing Consultant's findings, conclusions, and recommendations with any support documentation. All reports submitted to the Agency shall be in reproducible format. All services to be rendered hereunder shall be subject to the direction and approval of the Agency. Rz0004hd-gobaracs.wpd page 3 of 7 revised to Jan. 25, 2000 Section 12. Ownership of Documents. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential to the extent permitted by law, and Consultant agrees that they shall not be made available to any individual or organization without prior written consent of the Agency. All such reports, information, data, and exhibits shall be the property of the Agency and shall be delivered to the Agency upon demand without additional costs or expense to the Agency. The Agency acknowledges such documents are instruments of Consultant's professional services. Section 13. Indemnity. Consultant agrees to protect, defend and hold harmless Agency, its elected and appointed officials and employees from any and all claims, liabilities, expenses or damages of any nature, including attorneys' fees, for injury or death of any person or damage to property or interference with use of property and for errors and omissions committed by Consultant arising out of or in connection with the work, operation or activities of Consultant, its agents, employees and subcontractors in carrying out its obligations under this Agreement. Section 14. Insurance. Insurance required herein shall be provided by Admitted Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A- Class VII or better. 14.1 Comprehensive General Liability. Throughout the term of this Agreement, Consultantshall maintain in full force and effect Comprehensive General Liability coverage in the following minimum amounts: $500,000 property damage; $500,000 injury to one person/any one occurrence/not limited to contractual period; $1,000,000 injury to more than one person/any one occurrence/not limited to contractual period. Rz0004hd-gobaracs.wpd page 4 of 7 revised to Jan. 25, 2000 14.2 Comprehensive Automobile Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive Automobile Liability coverage, including owned, hired and non - owned vehicles in the following minimum amounts: $500,000 property damage; $500,000 injury to one person/any one occurrence/not limited to contractual period; $1,000,000 injury to more than one person/any one occurrence/not limited to contractual period 14.3 Worker's Compensation. If Consultant intends to employ employees to perform services under this Agreement, Consultant shall obtain and maintain, during the term of this Agreement, Worker's Compensation Employer's Liability Insurance in the statutory amount as required by state law. 14.4 Proof of Insurance Requirements/Endorsement. Prior to beginning any work under this Agreement, Consultant shall submit the insurance certificates, including the deductible or self -retention amount, and an additional insured endorsement to the Consultant's general liability and umbrella liability policies using ISO form CG 20 10 1185 (in no event with an edition date later than 1990) to the Agency's General Counsel for certification that the insurance requirements of this Agreement have been satisfied. 14.5 Errors and Omissions Coverage Throughout the term of this Agreement, Consultant shall not be required to maintain Errors and Omissions Coverage (professional liability coverage). 14.6 Notice of Cancellation/Termination of Insurance. The above policy/policies shall not terminate, nor shall they be canceled, nor the coverages reduced, until after thirty (30) days' written notice is given to Agency, except that ten (10) days' notice shall be given if there is a cancellation due to failure to pay a premium. Rz0004hd-gobaracs.wpd page 5 of 7 revised to Jan. 25, 2000 14.7 Terms of Compensation. Consultant shall not receive any compensation until all insurance provisions have been satisfied. 14.8 Notice to Proceed. Consultant shall not proceed with any work under this Agreement until the Agency has issued a written "Notice to Proceed" verifying that Consultant has complied with all insurance requirements of this Agreement. Section 15. Termination. Agency and Consultant shall have the right to terminate this Agreement without cause by giving thirty (30) days' advance written notice of termination to the other party In addition, this Agreement may be terminated for cause by providing ten (10) days' notice to the other party of a material breach of contract. If the other party does not cure the breach of contract, then the agreement may be terminated subsequent to the ten (10) day cure period. Section 16. Notice. All notices shall be personally delivered or mailed to the below listed addresses, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process: To Agency: Community Redevelopment Agency 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: Director of Administrative Services To Consultant: Alonzo Pedrin Alfred Gobar Associates 721 Kimberly Avenue Placentia, CA 92870-6343 Section 17. Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. RZ0004hd-gobaracs.wpd page 6 of 7 revised to Jan. 25, 2000 Section 18. Dispute Resolution. In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS'). Section 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. IN WITNESS WHEREOF, the parties hereto have executed this Agreement. M CONSULT ATTEST: Agency Clerk AS TO FORM: John R. Sha gency Attorney AGENCY R20004hd-gobaracs.wpd page 7 of 7 revised to Jan. 25, 2000 F MF7 ALFRED GOBAR ASSOCIATES May 7, 2001 Mr. William Ramsey, AICP, Principal Planner CITY OF SAN JUAN CAPISTRANO 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Sent Via Fax & e-mail (949) 493-1053 bramsey@sanjuancapistrano.org Subject: Economic Impact Analysis of Proposed Home Depot Dear Mr. Ramsey: Alfred Gobar Associates appreciates the opportunity to share with you some insights related to the proposed Home Depot and offer a recommended course of investigation to determine the probable competitive and economic affects that can be anticipated with and without approval of the pending development. The concerns stated in your RFP appear reasonable. We understand the most relevant concerns expressed in the RFP to include the following: • The competitive shift in taxable retail expenditures from existing City -based businesses to the new big -box operation. • The net increase (if any) in retail sales tax revenue generated by the City's home improvement and building material sector if the project goes forward. • Associated decline in job opportunities that are not otherwise replaced by the volume - pricing retailer. • The relevant competitive trade area of a Home Depot and other home improvement and building material outlets within San Juan Capistrano and adjoining communities. • The competitive outlook for the home improvement and building material sector of San Juan Capistrano if the Home Depot project does not go forward. The building materials retail sector of the City is a relatively strong performer in light of the limited number of retail operators within this business classification (eight reporting outlets) and the modest resident population within the City limits. Overall, the City's building material sector, including lumber and building material outlets, hardware stores, lawn and garden centers, and glass, paint, and wallpaper outlets, generated $26.2 million in total taxable sales in 1999, the latest available reporting period. This retail sector accounted for approximately 5.2 percent of total taxable sales generated at retail and non -retail outlets combined during 1999. Many of the City's strongest building material outlets generating taxable sales, however, cater heavily to professional contract trades as opposed to the retail consumer. Some of the more notable businesses with a strong contractor merchandising focus include: • White Cap: a pro -contractor supplier with 41 outlets throughout the western United States, including 26 outlets in California and two in Orange County. 721 Kimberly Avenue, Placentia, CA 92870-6343 (714) 524-1000 FAX(714)524-0149 ALFRED GOBAR ASSOCIATES Mr. William Ramsey, AICP, Principal Planner May 7, 2001 • Hydro-Scape: an international supplier of commercial gardening and irrigation products with 17 outlets in California, including two in Orange County. • Capistrano Hardwoods: local lumber supplier specializing in hardwood stock, molding, and related contractors grade tools and supplies. • Hirsch Pipe and Supply: local pipe and fitting supplier for area plumbing and electrical contractors. • Golden West Pipe and Supply: local pipe and fitting supplier for area plumbing and electrical contractors. The City's building materials sector also includes some notable merchandisers that focus on the retail consumer, including: • DeNaults True Value Hardware: one of six national chain franchise outlets under the same ownership and operating within South Orange County. • Armstrong Garden Center: one of 10 national chain outlets serving Orange County. • Vista Paint and Wall Covering: one of 13 chain outlets in Orange County. Vista Paints is the largest privately held paint supply chain based in Southern California. Given the retail operating and merchandising thrust of Home Depot, an investigation of competitive and economic impacts associated with this retailer should primarily address its affect on the City's building materials retail sector, including the above noted businesses and similar retail outlets. It is equally important for the City of San Juan Capistrano to understand the competitive impact that should be expected once the new Lowe's Home Improvement Warehouse in San Clemente is in operation, whether or not the new Home Depot in San Juan Capistrano is approved. Retail stores comprising the City's building materials sector currently compete with two nearby Home Depot stores to the north, one in Mission Viejo and another in Laguna Niguel. The Lowe's Home Improvement Warehouse introduces a strong competitive force to the south while the proposed Home Depot may actually serve to mitigate some of the impending sales leakage that can be expected to flow to San Clemente. Recommended Workscope The recommended workscope is designed to address the breadth of issues and concerns summarized above. The methodology is similar to our standard market research approach but involves more rigor than normally required to determine the feasibility of a prospective retail development. 1. A series of trade areas around the subject property is used to define the geographic limits of the consumer support base that accounts for the bulk of sales of a freestanding home improvement anchor store at the site. A typical trade area up C NY DOCUMENTSUORDPERFEGT DOLUMENTSWDVANGE PL NING\RZOOOGHOMEDEPOT�ECONPROP-GOBAR WPO ALFRED GOBAR ASSOCIATES Mr. William Ramsey, AICP, Principal Planner May 7, 2001 Page 3 to 3.0 to 5.0 miles from the site usually defines the relevant competitive environment for the bulk of consumer support for a home improvement discount operation in Orange County. The relevant trade area for the site location will be refined based on the geographic location of existing retailers and anchor operations expected to compete directly with the site for consumer sales. The relevant consumer support base is described in terms of the trade areas' existing and future population, income level, and other socio -demographic characteristics. This initial task is also expanded to identify the normative trade area associated with many non -anchor retailers in the building material sector in terms of threshold population levels. The corresponding threshold population is further described geographically by a series of drive time trade area definitions from the subject site. 2. A field analyst from Alfred Gobar Associates will audit existing home improvement anchor stores up to 5.0 miles from the subject as indicated by the trade area definition in Task 1 above. The field audit will also include other building material retailers within a sub -area of the anchor store trade area, likely including the City of San Juan Capistrano and portions of adjoining communities. The size of each store and its store type sub -classification is tabulated based on the State Board of Equalization classification scheme for building materials and farm implements. 3. Retail market support at the site location is then determined as a residual product of effective competition that is exerted by existing merchandisers at the site location, in the absence of the Home Depot operation. This process involves the use of Consultant developed gravity models that generate a measure of effective competition after assigning high weight to strong merchandisers in order to determine the impact on sales potential exerted by existing operations as a function of their distance from the subject site. This analysis also includes future competing anchor stores, such as the Lowe's Home Improvement Warehouse, likely to be developed at locations close enough to share part of a trade area with the subject location. The estimate of future competition is based on planning agency data. 4. The determination of effective market support at the site location is identified in terms of expected sales volume per square foot for the proposed Home Depot. The estimate of market based support for retail sales is compared to a target threshold level of sales performance (ranging from $30.0 to $35.0 million for most Home Depot stores) to determine probable retailing potential at the site location in the absence of high volume merchandising strategies associated with Home Depot. To the extent residual market support indicates a sub -par level of sales performance future success of the Home Depot operation will be dependent on an aggressive level of sales capture from existing area competitors. 5. Expenditure potential that is redistributed from existing retail stores in the trade area to the subject site represents the effective competitive impact of the development. The shift in expenditure potential is not limited to stores in the City of San Juan Capistrano. A portion but not all targeted sales performance at the subject site C UY DOCUMENTSMOROPERFECT D.LUMENTS�.IANCE PLANNINMRZ0004HOMEDEPOT�ECONPROP-GOBPR WPD ALFRED GOBAR ASSOCIATES Mr. William Ramsey, AICP, Principal Planner May 7, 2001 Paoe 4 represents a shift from the existing base of stores in the City. The Consultant modifies the gravity model analysis to estimate the probable share of total sales capture that can be expected to represent a competitive shift from City -based retailers. This analysis concurrently identifies the net increase in sales tax revenue (target sales performance less competitive shift) that the proposed Home Depot operation can be expected to generate. 6. Concurrent with the above analysis, retail sector employment data specific to the building material and garden supply retail sector is evaluated to identify the relationship between normative levels of employment and effective sales. In 1997 throughout the United States $120,000 in sales volume supported a single employment position for the retail sector as a whole. Within the building material and garden supply sector $180,000 in sales volume supported a single employment position. Less than two-thirds of jobs in the retail industry as a whole represent full- time employment. Employment -sales relationships for sub -classifications of the building material sector are further evaluated in order to determine the probable loss in employment positions represented by the shift in competitive sales from existing retailers to the Home Depot anchor operation. The competitive impact of the future Lowe's Home Improvement Warehouse in San Clemente is evaluated, assuming the proposed Home Depot is not approved and a suitable alternative location in San Juan Capistrano does not exists. This supplemental analysis is similar to the workscope in Tasks 3, 4, and 5 and determines the extent of sales leakage that can be expected if the Home Depot is not approved. Related to this issue special attention is directed to the merchandising focus of existing City -based establishments, in terms of their respective emphasis on contractor sales versus retail consumer sales. The relative strength of the City's existing building material sector may be attributed to the presence of strong contractor outlets while a sizeable portion of retail consumer potential currently flows to competing home improvement centers to the north. The above workscope is compiled into an integrated report analysis that addresses five key issues and concerns first identified in this proposal. Absent in this analysis is a determination of the probable risk of closure for specific merchants within the City of San Juan Capistrano. While the analysis will identify the extent of competitive shift in terms of taxable sales by class of retailer, extrapolating such findings to specific merchandisers is not feasible using the breadth of research information that can be legally obtained. Operating success or failure is not strictly limited to total taxable sales but is also affected by other factors such as management expertise, product selection and merchandising, product related services, inventory control, merchant's fixed cost structure, and capitalization, among other determinants. Extrapolating the research findings in order to predict operating solvency and failure of specific merchants represents a tenuous and costly exercise with little objective merit. G WY NOCOMENTSMOROPERFECT DOGOMENTSVDVFNOE PI WWNGI ZOO"HOMEUEPOTIEGONPROP-GG9 RWP0 ALFRED GOBAR ASSOCIATES Mr. William Ramsey, AICP, Principal Planner May 7, 2001 Paqe 5 Experience and Qualifications Analyzing the competitive impact of retail development involves a substantial degree of careful research and analytical rigor uncommon to most forms of retail market analysis. Alfred Gobar Associates has performed these type of studies for several years, primarily in response to client needs and as a professional challenge to the firm. Alonzo Pedrin, Principal with Alfred Gobar Associates, will serve as the lead analyst for this study endeavor. Mr. Pedrin most recently served as the lead analyst evaluating the competitive impact of a power center in the City of La Habra and has actively participated in numerous competitive impact studies including the following notable projects: • Impact of the San Joaquin Hills Corridor - Interstate 5 interchange alignment and construction on retail sales in the City of Laguna Niguel. • Retail impact of the Tyler Mall Expansion on the Moreno Valley Mall at Towngate. • Competitive impact of 15 -story office/commercial building on local office market within downtown San Bernardino. • Retail impact of the Marblehead Factory Outlet Center on existing retail businesses in the City of San Clemente. • Retail and fiscal impact of the Westridge Power Center on existing retail businesses in the City of La Habra. All studies involved controversial development programs and included the specific requirement of identifying the probable affect of project development and operation on existing enterprises expected to compete for the same base of market support. Alfred Gobar Associates (originally Darley-Gobar Associates, Inc.) was a pioneer in the development of mathematically -based models for retail site selection, preparing nationwide site selection strategies for a number of chains including A & W International, Betty Crocker Pie Shops, Burger Chef, Carl Karcher Enterprises, Collins Foods International, Denny's restaurants, Dunkin' Donuts, Farrell's Ice Cream Parlors, Jack in the Box, Jolly Roger restaurants, Orange Julius, Pizza Hut, Sir George's Smorgasbord, etc. Supermarket chains for which Alfred Gobar Associates has prepared development strategies and individual project feasibility analyses include Albertson's, Arden Mayfair, Big Bear Markets, Bradshaws, EI Rancho markets, Food Giant, Vons, Stater Bros., Hughes, Gelsons, Mothers and others. The company has also been retained to prepare retail site feasibility analyses for Atlantic Richfield Company, Exxon, Fotomat, Gulf Oil, Sav-On (Osco), Walker Scott department stores, West Brothers department stores, 7-11, Tic Toc Convenience Markets, and such shopping center developers as ICI Development, Newman Properties, E.W. Hahn Corporation, Beneficial Standard Properties, the Janss Corporation, Pacific Mutual Life Insurance Company, Chevron Land and Development Company, Getty Oil, Huntington Beach Company, Donahue Schriber Company, SDC, Western Commercial Development C WY DOCVMENT$MOROPERFECT DOCIIMENTSI ..V E_PUNNING�RZ0004HOMEDEPOT\ECONPROP-GORAR WPO ALFRED GOBAR ASSOCIATES Mr. William Ramsey, AICP, Principal Planner May 7, 2001 Page 6 Company, Diversified Shopping Centers, Crossroads Development Company, Trammel Crow, Homart, and a large number of smaller shopping center development entities. Staff -written publications related to market analysis of retail property include the following: "Restaurant Site Selection," The Cornell Hotel and Restaurant Administration Quarterly. "How Computers Pick Store Sites," American Druggist. "Inefficiencies in the Retail Sector of the American Economy," presented at the Western Regional Science Association Meeting, San Diego. "Site Selection," Franchise Journal, 3 Part Article. "Site Location Analysis for Branch Banking," The Bankers Magazine. "The Obsolete Shopping Center - A Study of Causes and Cures," Journal of Property Management. "Should You Have a Shopping Center in Your Project?" House & Home. "An Argument for More Restrictive Commercial Zoning," Government Executive. "Economic Feasibility Analysis Aids in Shopping Center Redevelopment Program," The Journal of Housing. "General Equilibrium Urban Land Use Concepts," Technical Report - Real Estate Market Analysis: Supply and Demand Factors, Appraisal Institute. "How to Evaluate and Build on Your City's Best Assets for Attracting Business," Western City. "Real Estate Product Response to Retail Demand," Shopping Centers and Other Retail Properties. Published in association with the Urban Land Institute. For a number of years, Dr. Gobar was one of the principal instructors at the International Council of Shopping Centers' University of Shopping Centers presenting classes dealing with techniques of market research applicable to retail development projects -development proposals and existing centers. Project Cost, Schedule, and Terms of Service The proposed workscope will require approximately 9 weeks to complete and prepare a draft report for review by City Staff. The not -to -exceed cost to prepare a Draft and Final CI WY DOCUMENTSMOROPERFECT DOCUMENTSWOVHNCE PIANNINmRZWNHOMEDEP.1 ECONPROP-GOBARR 0 ALFRED GOBAR ASSOCIATES Mr. William Ramsey, AICP, Principal Planner May 7, 2001 Paoe 7 report consistent with our normal reporting format is $13,500. The total cost includes five (5) copies of the Draft document and ten (10) copies of a final revised report plus a copy - ready original submitted to the City for distribution. Public hearing presentation involves an additional cost on a time and material basis for meeting attendance and related travel. The hourly rate of Mr. Pedrin, the lead analyst assigned to this proposed workscope, is $90 per hour. We cannot commence work and the time frame to completion does not begin until a signed and authorized contract is received in our office. The above cost quote includes general liability, workers compensation and auto insurance coverage according to the standard limits of our endorsement policy ($1.0 million). Our terms require the City of San Juan Capistrano to pay the cost of any additional forms of insurance or coverage limits the City may require. Alfred Gobar Associates does not maintain or qualify for errors and omission coverage as the services to be performed do not constitute a licensed practice. In addition, our normal terms require payment of an up front retainer fee equal to one-third the cost of authorized work. Alfred Gobar Associates is willing to waive its retainer fee requirement based on its past relationship with the City of San Juan Capistrano but requires Paragraph 14.7 "Terms of Compensation" of the "Draft Personal Services Agreement" be waived and payment of monthly progress invoices within a customary 30 -day period be honored. Our terms further specify that in the event of litigation regarding fees, the prevailing party is entitled to recover reasonable attorney costs. In -lieu of the City's standard "Personal Services Agreement" Alfred Gobar Associates is prepared to begin work on the "Economic Impact Analysis" immediately upon receipt of your legal authorization in the space provided below. If you have any questions about the proposed scope of work or would like to discuss our methodology and approach further, don't hesitate to give me a call. Very truly yours, ALFRED GOBAR ASSOCIATES Alonzo Pedrin Please Check Box Indicate Cost Agreement Principal _ Economic Impact Analysis $13,500.00 AP LEGALLY AUTHORIZED BY: DATE: C lMV DOCUMENTSMORDPERFWT DOCUMENTSWDIANCE_PANNING\RE0004HOMEDEPOT\ECONPROP-Goa. WPD PAYMENT FOR SERVICES Section I. Maximum Compensation: The total lump sum compensation for all services performed by CONSULTANT pursuant to this agreement shall not exceed thirteen - thousand, five -hundred dollars and no cents ($13,500.00). This fee shall include all costs incurred by the CONSULTANT for salary and out-of-pocket expenses for travel and miscellaneous expenses necessary to complete all work specified in the "Scope of Work" (Exhibit "A"). Section 11. Contract Administration and Payment A. Consultant Payment Schedule: The City agrees to make monthly progress payments to the CONSULTANT according to the approved scope -of -work (Exhibit "A") and subject to the verification by the City that the consultant has completed authorized work pursuant to that scope -of -work. EXHIBIT "B"