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HomeMy WebLinkAboutContract CAG-19-1:. ( \ Cap ' was a 4 N 7 C? AGREEMENT FOR PROGRAM MANAGEMENT FOR COMMERCIAL KITCHEN THIS AGREEMENT, dated June 10, 2019, is by and between the City of Renton (the "City"), a Washington municipal corporation, and ORCA Human Resources Solutions ("Consultant"), LLC. The City and the Consultant are referred to collectively in this Agreement as the "Parties." Once fully executed by the Parties,this Agreement is effective as of the last date signed by both parties. 1. Scope of Work: Consultant agrees to provide Program and Project Management Services as specified in Exhibit A, which is attached and incorporated herein and may hereinafter be referred to as the "Work." Exhibit A contains both a section for Consultant's Scope of Work (pages 1-3) and a section for Consultant's original proposal (pages 4 through end); any internal inconsistencies within Exhibit A shall be resolved in favor of the terms found in the Scope of Work section. 2. Changes in Scope of Work: The City, without invalidating this Agreement, may order changes to the Work consisting of additions,deletions or modifications.Any such changes to the Work shall be ordered by the City in writing and the Compensation shall be equitably adjusted consistent with the rates set forth in Exhibit A or as otherwise mutually agreed by the Parties. 3. Time of Performance: Consultant shall commence performance of the Agreement pursuant to the schedule(s) set forth in Exhibit A. All Work shall be performed by no later than December 31, 2021. 4. Compensation: A. Amount. Total compensation to Consultant for Work provided pursuant to this Agreement shall not exceed $15,400, plus any applicable state and local sales taxes. Compensation shall be paid based upon Work actually performed according to the rate(s) or amounts specified in Exhibit A.The Consultant agrees that any hourly or flat rate charged by it for its Work shall remain locked at the negotiated rate(s) unless otherwise agreed to in writing or provided in Exhibit A. Except as specifically provided herein, the Consultant shall be solely responsible for payment of any taxes imposed as a result of the performance and payment of this Agreement. B. Method of Payment. On a monthly or no less than quarterly basis during any quarter in which Work is performed,the Consultant shall submit a voucher or invoice in a form specified by the City, including a description of what Work has been performed, the name of the personnel performing such Work, and any hourly labor charge rate for such personnel. The Consultant shall also submit a final bill upon completion of all Work. Payment shall be made by the City for Work performed within thirty (30) calendar days after receipt and approval by the appropriate City representative of the voucher or invoice. If the Consultant's performance does not meet the requirements of this Agreement, the Consultant will correct or modify its performance to comply with the Agreement.The City may withhold payment for work that does not meet the requirements of this Agreement. C. Effect of Payment. Payment for any part of the Work shall not constitute a waiver by the City of any remedies it may have against the Consultant for failure of the Consultant to perform the Work or for any breach of this Agreement by the Consultant. D. Non-Appropriation of Funds. If sufficient funds are not appropriated or allocated for payment under this Agreement for any future fiscal period, the City shall not be obligated to make payments for Work or amounts incurred after the end of the current fiscal period, and this Agreement will terminate upon the completion of all remaining Work for which funds are allocated. No penalty or expense shall accrue to the City in the event this provision applies. 5. Termination: A. The City reserves the right to terminate this Agreement at any time, with or without cause by giving ten (10)calendar days' notice to the Consultant in writing. In the event of such termination or suspension, all finished or unfinished documents,data,studies, worksheets, models and reports, or other material prepared by the Consultant pursuant to this Agreement shall be submitted to the City, if any are required as part of the Work. B. In the event this Agreement is terminated by the City, the Consultant shall be entitled to payment for all hours worked to the effective date of termination, less all payments previously made. If the Agreement is terminated by the City after partial performance of Work for which the agreed compensation is a fixed fee, the City shall pay the Consultant an equitable share of the fixed fee. This provision shall not prevent the City from seeking any legal remedies it may have for the violation or nonperformance of any of the provisions of this Agreement and such charges due to the City shall be deducted from the final payment due the Consultant. No payment shall be made by the City for any expenses incurred or work done following the effective date of termination unless authorized in advance in writing by the City. PAGE 2 OF 10 6. Warranties And Right To Use Work Product: Consultant represents and warrants that Consultant will perform all Work identified in this Agreement in a professional and workmanlike manner and in accordance with all reasonable and professional standards and laws. Compliance with professional standards includes, as applicable, performing the Work in compliance with applicable City standards or guidelines (e.g. design criteria and Standard Plans for Road, Bridge and Municipal Construction). Professional engineers shall certify engineering plans, specifications, plats, and reports, as applicable, pursuant to RCW 18.43.070. Consultant further represents and warrants that all final work product created for and delivered to the City pursuant to this Agreement shall be the original work of the Consultant and free from any intellectual property encumbrance which would restrict the City from using the work product. Consultant grants to the City a non- exclusive, perpetual right and license to use, reproduce, distribute, adapt, modify, and display all final work product produced pursuant to this Agreement. The City's or other's adaptation, modification or use of the final work products other than for the purposes of this Agreement shall be without liability to the Consultant. The provisions of this section shall survive the expiration or termination of this Agreement. 7. Record Maintenance: The Consultant shall maintain accounts and records, which properly reflect all direct and indirect costs expended and Work provided in the performance of this Agreement and retain such records for as long as may be required by applicable Washington State records retention laws, but in any event no less than six years after the termination of this Agreement. The Consultant agrees to provide access to and copies of any records related to this Agreement as required by the City to audit expenditures and charges and/or to comply with the Washington State Public Records Act (Chapter 42.56 RCW). The provisions of this section shall survive the expiration or termination of this Agreement. 8. Public Records Compliance: To the full extent the City determines necessary to comply with the Washington State Public Records Act,Consultant shall make a due diligent search of all records in its possession or control relating to this Agreement and the Work, including, but not limited to, e-mail, correspondence, notes, saved telephone messages, recordings, photos, or drawings and provide them to the City for production. In the event Consultant believes said records need to be protected from disclosure, it may, at Consultant's own expense, seek judicial protection. Consultant shall indemnify, defend, and hold harmless the City for all costs, including attorneys' fees, attendant to any claim or litigation related to a Public Records Act request for which Consultant has responsive records and for which Consultant has withheld records or information contained therein, or not provided them to the City in a timely manner. Consultant shall produce for distribution any and all records responsive to the Public Records Act request in a timely manner, unless those records are protected by court order.The provisions of this section shall survive the expiration or termination of this Agreement. PAGE 3OF10 9. Independent Contractor Relationship: A. The Consultant is retained by the City only for the purposes and to the extent set forth in this Agreement.The nature of the relationship between the Consultant and the City during the period of the Work shall be that of an independent contractor, not employee.The Consultant, not the City,shall have the power to control and direct the details, manner or means of Work. Specifically, but not by means of limitation, the Consultant shall have no obligation to work any particular hours or particular schedule, unless otherwise indicated in the Scope of Work or where scheduling of attendance or performance is mutually arranged due to the nature of the Work. Consultant shall retain the right to designate the means of performing the Work covered by this agreement, and the Consultant shall be entitled to employ other workers at such compensation and such other conditions as it may deem proper, provided, however, that any contract so made by the Consultant is to be paid by it alone, and that employing such workers, it is acting individually and not as an agent for the City. B. The City shall not be responsible for withholding or otherwise deducting federal income tax or Social Security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to Consultant or any employee of the Consultant. C. If the Consultant is a sole proprietorship or if this Agreement is with an individual,the Consultant agrees to notify the City and complete any required form if the Consultant retired under a State of Washington retirement system and agrees to indemnify any losses the City may sustain through the Consultant's failure to do so. 10. Hold Harmless: The Consultant agrees to release, indemnify, defend, and hold harmless the City, elected officials, employees, officers, representatives, and volunteers from any and all claims, demands, actions, suits, causes of action, arbitrations, mediations, proceedings, judgments, awards, injuries, damages, liabilities, taxes, losses, fines, fees, penalties, expenses, attorney's or attorneys' fees, costs, and/or litigation expenses to or by any and all persons or entities, arising from, resulting from, or related to the negligent acts, errors or omissions of the Consultant in its performance of this Agreement or a breach of this Agreement by Consultant, except for that portion of the claims caused by the City's sole negligence. Should a court of competent jurisdiction determine that this agreement is subject to RCW 4.24.115, (Validity of agreement to indemnify against liability for negligence relative to construction,alteration, improvement,etc.,of structure or improvement attached to real estate...) then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the PAGE 4OF10 Consultant and the City, its officers, officials, employees and volunteers, Consultant's liability shall be only to the extent of Consultant's negligence. It is further specifically and expressly understood that the indemnification provided in this Agreement constitute Consultant's waiver of immunity under the Industrial Insurance Act, RCW Title 51, solely for the purposes of this indemnification. The Parties have mutually negotiated and agreed to this waiver. The provisions of this section shall survive the expiration or termination of this Agreement. 11. Gifts and Conflicts: The City's Code of Ethics and Washington State law prohibit City employees from soliciting, accepting, or receiving any gift, gratuity or favor from any person, firm or corporation involved in a contract or transaction. To ensure compliance with the City's Code of Ethics and state law,the Consultant shall not give a gift of any kind to City employees or officials. Consultant also confirms that Consultant does not have a business interest or a close family relationship with any City officer or employee who was, is, or will be involved in selecting the Consultant, negotiating or administering this Agreement, or evaluating the Consultant's performance of the Work. 12. City of Renton Business License: The Consultant shall obtain a City of Renton Business License prior to performing any Work and maintain the business license in good standing throughout the term of this agreement with the City. Information regarding acquiring a city business license can be found at: http://www.rentonwa.gov/cros/One.aspx?portalld=7922741&pageld=9824882 Information regarding State business licensing requirements can be found at: http://dor.wa.gov/doing-business/register-my-business 13. Insurance: Consultant shall secure and maintain: A. Commercial general liability insurance in the minimum amounts of $1,000,000 for each occurrence/$2,000,000 aggregate for the Term of this Agreement. B. In the event that Work delivered pursuant to this Agreement either directly or indirectly involve or require Professional Services, Professional Liability, Errors and Omissions coverage shall be provided with minimum limits of $1,000,000 per occurrence. "Professional Services", for the purpose of this section, shall mean any Work provided by a licensed professional or Work that requires a professional standard of care. C. Workers' compensation coverage, as required by the Industrial Insurance laws of the State of Washington, shall also be secured. .mow PAGE 5OF10 D. Commercial Automobile Liability for owned, leased, hired or non-owned, leased, hired or non-owned, with minimum limits of $1,000,000 per occurrence combined single limit, if there will be any use of Consultant's vehicles on the City's Premises by or on behalf of the City, beyond normal commutes. E. Consultant shall name the City as an Additional Insured on its commercial general liability policy on a non-contributory primary basis. The City's insurance policies shall not be a source for payment of any Consultant liability, nor shall the maintenance of any insurance required by this Agreement be construed to limit the liability of Consultant to the coverage provided by such insurance or otherwise limit the City's recourse to any remedy available at law or in equity. F. Subject to the City's review and acceptance, a certificate of insurance showing the proper endorsements, shall be delivered to the City before performing the Work. G. Consultant shall provide the City with written notice of any policy cancellation, within two (2) business days of their receipt of such notice. 14. Delays: Consultant is not responsible for delays caused by factors beyond the Consultant's reasonable control. When such delays beyond the Consultant's reasonable control occur,the City agrees the Consultant is not responsible for damages, nor shall the Consultant be deemed to be in default of the Agreement. 15. Successors and Assigns: Neither the City nor the Consultant shall assign, transfer or encumber any rights, duties or interests accruing from this Agreement without the written consent of the other. 16. Notices: Any notice required under this Agreement will be in writing, addressed to the appropriate party at the address which appears below (as modified in writing from time to time by such party), and given personally, by registered or certified mail, return receipt requested, by facsimile or by nationally recognized overnight courier service.Time period for notices shall be deemed to have commenced upon the date of receipt, EXCEPT facsimile delivery will be deemed to have commenced on the first business day following transmission. Email and telephone may be used for purposes of administering the Agreement, but should not be used to give any formal notice required by the Agreement. CITY OF RENTON CONSULTANT Jessie Kotarski Paul O'Beirne 1055 South Grady Way 1635 204TH PLACE NE Renton, WA 98057 Sammamish, WA 98074 Phone: (425) 430-7271 Phone: (206) 691-0185 PAGE 6 OF 10 JKotarski@Rentonwa.RovF paul@orcahrsolutions.com 17. Discrimination Prohibited: Except to the extent permitted by a bona fide occupational qualification, the Consultant agrees as follows: A. Consultant, and Consultant's agents, employees, representatives, and volunteers with regard to the Work performed or to be performed under this Agreement, shall not discriminate on the basis of race, color, sex, religion, nationality, creed, marital status, sexual orientation or preference, age (except minimum age and retirement provisions), honorably discharged veteran or military status, or the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification in relationship to hiring and employment, in employment or application for employment, the administration of the delivery of Work or any other benefits under this Agreement, or procurement of materials or supplies. B. The Consultant will take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, creed, color, national origin, sex, age, sexual orientation, physical, sensory or mental handicaps, or marital status. Such action shall include, but not be limited to the following employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training. C. If the Consultant fails to comply with any of this Agreement's non-discrimination provisions, the City shall have the right, at its option, to cancel the Agreement in whole or in part. D. The Consultant is responsible to be aware of and in compliance with all federal, state and local laws and regulations that may affect the satisfactory completion of the project, which includes but is not limited to fair labor laws, worker's compensation, and Title VI of the Federal Civil Rights Act of 1964, and will comply with City of Renton Council Resolution Number 4085. 18. Miscellaneous: The parties hereby acknowledge: A. The City is not responsible to train or provide training for Consultant. B. Consultant will not be reimbursed for job related expenses except to the extent specifically agreed within the attached exhibits. C. Consultant shall furnish all tools and/or materials necessary to perform the Work except to the extent specifically agreed within the attached exhibits. PAGE 7 OF 10 D. In the event special training, licensing, or certification is required for Consultant to provide Work he/she will acquire or maintain such at his/her own expense and, if Consultant employs, sub-contracts, or otherwise assigns the responsibility to perform the Work, said employee/sub-contractor/assignee will acquire and or maintain such training, licensing, or certification. E. This is a non-exclusive agreement and Consultant is free to provide his/her Work to other entities, so long as there is no interruption or interference with the provision of Work called for in this Agreement. F. Consultant is responsible for his/her own insurance, including, but not limited to health insurance. G. Consultant is responsible for his/her own Worker's Compensation coverage as well as that for any persons employed by the Consultant. 19. Other Provisions: A. Approval Authority. Each individual executing this Agreement on behalf of the City and Consultant represents and warrants that such individuals are duly authorized to execute and deliver this Agreement on behalf of the City or Consultant. B. General Administration and Management. The City's project manager is Jessie Kotarski. In providing Work, Consultant shall coordinate with the City's contract manager or his/her designee. C. Amendment and Modification. This Agreement may be amended only by an instrument in writing, duly executed by both Parties. D. Conflicts. In the event of any inconsistencies between Consultant proposals and this Agreement, the terms of this Agreement shall prevail. Any exhibits/attachments to this Agreement are incorporated by reference only to the extent of the purpose for which they are referenced within this Agreement. To the extent a Consultant prepared exhibit conflicts with the terms in the body of this Agreement or contains terms that are extraneous to the purpose for which it is referenced, the terms in the body of this Agreement shall prevail and the extraneous terms shall not be incorporated herein. E. Governing Law. This Agreement shall be made in and shall be governed by and interpreted in accordance with the laws of the State of Washington and the City of Renton. Consultant and all of the Consultant's employees shall perform the Work in accordance with all applicable federal, state, county and city laws, codes and ordinances. Ztt PAGE 8 OF 10 F. Joint Drafting Effort.This Agreement shall be considered for all purposes as prepared by the joint efforts of the Parties and shall not be construed against one party or the other as a result of the preparation, substitution, submission or other event of negotiation, drafting or execution. G. Jurisdiction and Venue.Any lawsuit or legal action brought by any party to enforce or interpret this Agreement or any of its terms or covenants shall be brought in the King County Superior Court for the State of Washington at the Maleng Regional Justice Center in Kent, King County,Washington, or its replacement or successor. Consultant hereby expressly consents to the personal and exclusive jurisdiction and venue of such court even if Consultant is a foreign corporation not registered with the State of Washington. H. Severability. A court of competent jurisdiction's determination that any provision or part of this Agreement is illegal or unenforceable shall not cancel or invalidate the remainder of this Agreement, which shall remain in full force and effect. I. Sole and Entire Agreement. This Agreement contains the entire agreement of the Parties and any representations or understandings, whether oral or written, not incorporated are excluded. J. Time is of the Essence. Time is of the essence of this,Agreement and.each and all of its provisions in which performance is a factor. Adherence to completion dates set forth in the description of the Work is essential to the Consultant's performance of this Agreement. K. Third-Party Beneficiaries. Nothing in this Agreement is intended to, nor shall be construed to give any rights or benefits in the Agreement to anyone other than the Parties, and all duties and responsibilities undertaken pursuant to this Agreement will be for the sole and exclusive benefit of the Parties and no one else. L. Binding Effect. The Parties each bind themselves, their partners, successors, assigns, and legal representatives to the other party to this Agreement, and to the partners, successors, assigns, and legal representatives of such other party with respect to all covenants of the Agreement. M. Waivers. All waivers shall be in writing and signed by the waiving party. Either party's failure to enforce any provision of this Agreement shall not be a waiver and shall not prevent either the City or Consultant from enforcing that provision or any other provision of this Agreement in the future. Waiver of breach of any provision of this Agreement shall not be deemed to be a waiver of any prior or subsequent breach unless it is expressly waived in writing. PAGE 9 OF 10 N. Counterparts. The Parties may execute this Agreement in any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement. IN WITNESS WHEREOF, the Parties have voluntarily entered into this Agreement as of the date last signed by the Parties below. CITY OF RENTON CONSULTANT A By: By: RtAJOD C.E. "Chip" Vincent Paul O'Beirne CED Administrator Founder and Principal • Ii I 11 6/26/19 Date Date Approved as to Legal Form BpAso Q g Shane Moloney Renton City Attorney Contract Template Updated 03/12/2019 PAGE 10 OF 10 Exhibit A Discovery Phase — Scope of Work 1. Discovery and Alignment Phase Review all existing assessments, economic trends and research information to craft a strategic direction and alignment with the overall economic development strategy • Outcome—Define and develop vision and goals for the commercial kitchen 2. Program Approach and Initiation Based on the desired strategic outcomes,formulate an approach and an outline of strategic initiatives • Establishes procedures for identification of project resources,coordinates resource acquisition and assignment. • Outcome—Defined Program and Processes to support the multiple projects 3. Program Planning and Execution a. Identify Initial Projects/Workstreams,Scope, Budget and Timing a. Identify sources of funding for initiatives b. Plan and approve projects c. Fund and execute projects Discovery Phase of 110 hours at $140 per hour or $15,400 (425) 260-8603 Create Your Desirable Future www.orcahrsolutions.com Proposed Statement of Work Milestones Activities: Food Service Center Initiative 1. Food Market Analysis—Port of Seattle 2. Feasibility Analysis—University of Washington Bothell a. Assessment of Commercial Kitchen Uses—University of Washington Bothell b. Value System Design—University of Washington Bothell c. Program Alternatives—University of Washington Bothell 3. Proposed Food Service Center Action Plan (Dynamic) 4. Community Go/No Go Decisions 5. Develop Project Plans and Budgets 6. Program Alignment 7. Multi-Phase Execution Proposed Timeline Activity Dates Comments UW Feasibility Study May June 2019 UW Business Plan June July 2019, plus Specifics needed on financials; more clarity ongoing revisions around anchor tenants and custom processing Secure Financing Q3, Q4 2019 Q1-4 Potential for multiple grants& local partnerships 2020, Q1-4 2021, Q1-2 2012 Site Selection Locked Q2, 2019 Review local options, secure proposed location Design Facility Q3, 2019 Hire architect for facility design Policy Development Q4 2020-Q3 2021 Review other incubator policies, craft policies prior to launch Phase One Construction Q3—Q4 2019 Ground breaking through launch Employees Q4,2019 Hire of kitchen manager 3-6 months prior to launch Phase One Equipment Q3-Q4 2019 Based on anchor tenants needs and perceived Purchases/Donations needs in 2019 (425) 260-8603 Create Your Desirable Future www.orcahrsolutions.com Phase One Marketing Ongoing Awareness Recruit initial tenants, focus on anchor tenant and farm processing clients Facility Opening Q4 2019 Open house, press event, media coverage, outreach to funders Phase Two Construction Q4, 2020—Q4 2021 Phase Two Equipment Q1-4, 2020 Purchases/ Donations Phase Two Marketing Heavy push 2021 Phase Three Construction Q4, 2020—Q4 2021 Phase Three Equipment Q1-4 2021 Purchases/ Donations (425) 260-8603 Create Your Desirable Future www.orcahrsolutions.com 11 .1 • City of Renton` Urban Food Service Center Unsolicited Proposal for Consulting Services Prepared For: City of Renton % sz Proposal written and presented by: ORCA HR Solutions Date: April 18, 2019 ORCA HR SOLUTIONS„ About Us Executive Summary Based on the findings from a collection of economic development reports, At Orca HR Solutions,we help individuals,teams,organizations,cities the City of Renton is exploring the possibilities of hosting a commercial and neighborhoods create"their kitchen and food service small business incubator. Working with the desirable future". School of Business at the University of Washington Bothell, students are engaging in activities needed to assess, analyze and design a collection of We work with leaders and their teams to potential uses and programs for an available space.This proposal is to empower and enable people to form support the program and project efforts with professional consulting strong collaborative organizations that services. influence and shape their environment and the conditions needed to realize The symbiotic relationship between neighborhood businesses and cities their potential. has existed for more than 10,000 years. We believe this proposal represents more than a promotion for food entrepreneurship; this is a Dean Van Dyke is the leader of Orca proposal to support the building of a model economic garden that grows Management Solutions-a team focused neighborhood businesses.To make America Great we need make on entrepreneurship and enterprise neighborhoods great. Great neighborhoods need great business neighbors. management. He is a seasoned professional with over 20 years of management consulting experience. He r ► R,'as ;4 � a, ir has served corporate and startup clients from across the nation in the areas of j ail " = f " # :11 « ,4 , ,$,±,; +q r Business Strategy,Architecture, ,.. i u_ � � w� iy ) ` Transformation and Operational Wig' ! • ., Aar x" L i, ;y 1 ,i Excellence. �� $ ,�. , ,., z,G, 1�N44 Dean's areas of expertise include .4' t Business Architecture,Quality&Process �� 6\eecke�Facm Improvement, Entrepreneurship, sari ,. ''''l w l Ff II, Program&Project Management and %', '''4 ' .. \ Organizational Change Management. • "'I ` ,''N+ As a consultant, Dean has experience Awe. working with leaders, managers and teams from government,small ._ °° - businesses, Fortune 500 businesses, Introduction entrepreneurs,and non-profit organizations.Clients include Microsoft, In April 2017, the Port of Seattle engaged consultants to evaluate the need DirecTV, Dell,Gateway,Shook, Hardy, for a food production space/incubator in King County. After surveying food and Bacon Law Firm and many more. businesses and interviewing stakeholders (including food entrepreneurs, retailers, service providers, and economic developers), they found that Dean earned a BS in Accounting and access to affordable production facilities that provide the means to Business Administration from University of South Dakota;an MBA in Project operate safely, efficiently, and professionally is an especially important Management from Colorado Technical need among local food businesses in all stages. They also found that University. During his free time, he reasonably priced production space in Seattle is particularly difficult to serves on non-profit boards,teaches find. In addition, they also discovered very little in the way of technical and business courses for SCORE and business resources exist that are specifically tailored to the needs of food volunteers as a SCORE Mentor. businesses seeking to scale production and grow their businesses. In particular, food entrepreneurs want subject matter experts and mentors for technical issues, as well as introductions to distributors, potential partners, and customers. These finding indicate that a once robust food service systems has eroded significantly over the last 50 years. (425) 260-8603 Create Your Desirable Future www.orcahrsolutions.com Since the end of the Second World War, the American food economy has been constantly evolving. From traditional home cooked meals to take-out, from frozen food to fast food, from processed food to organic food,from ethic food to gourmet food, from farm stand to mega food stores all in a period seventy years. As we look back on it, we are reminded of an old saying—for whatever happened, all the conditions were present. Today, we are experiencing a rise in demand for specialty food products and services such as micro brews, pepper jams, salsas, high end coffees, healthy meals, and food trucks.This demand is encouraging many new, hopeful food entrepreneurs to enter the market every year.The problem that many foods service entrepreneurs face is the cost of equipment is a significant barrier to entering the food service system. With this emergence of small food entrepreneurs, many are wondering whether their community needs a food business incubator, and how this incubator might benefit the overall food culture of their region. Again, the ability to generate revenue that will cover the cost of operations and the investment in equipment becomes a significant challenge. From the basements of churches and schools and community centers, across the entire nation there are fewer than two hundred food business incubators and they take many forms. Some have a shared-use kitchen that food entrepreneurs and/or farmers can rent to produce and store their products. Others offer contracted services for food manufacturing. Some are focused on produce only, while others allow tenants to process meat, cheese and other goods. Some provide mentorship and training while others provide business services such as administration, sales and distribution support. Some are designed to support economic revitalization while others are designed solely to support agricultural producers. Some are tiny, serving a handful of entrepreneurs while others are large scale and bring together a large network of entrepreneurs. The City of Renton has determined that a food service incubator would fill a critical need in helping rebuild their economic garden. After working with some of the students on this project, we think so as well. We are ORCA Management Solutions and we helps clients assess the conditions of the economic environment, determine a direction and develop a strategy. We also help with advice on how to best structure entrepreneurial endeavors like a food business incubator to meet their specific goals as well as the needs of their region's food entrepreneurs and farmers. We even offer program management services to support the execution phase. Urban Food Service Center — StrEAT Smart Concept The City of Renton is exploring the possibilities of an Urban Food Service Center with students from the University of Washington Bothell. Ultimately the center will provide tools to help those residents who are disadvantaged, unemployed or underemployed to develop skills that move them toward economic self- sufficiency.The facilities can also be used to reduce hunger and increase the availability of healthy local food by allowing farmers and organizations serving the hungry a place in which to process unsold, excess produce that would normally end up in the landfill or compost pile.This proposed Renton Food Service Center program is one part of the larger Puget Sound Food Service effort to establish a local food service infrastructure across the Puget Sound. (425) 260-8603 Create Your Desirable Future www.orcahrsolutions.com Food Service incubators face an interlocking set of issues: 1) a challenging revenue model, 2) high fixed costs, 3) difficulty in maintaining facility utilization, 4) complex scheduling and 5) intricate operational logistics. Similar to other business incubators or accelerators,to help their clients succeed they must possess deep expertise and a robust network of industry contacts. Unlike incubators or accelerators in other industries, however, culinary incubators must also be knowledgeable with the complex and overlapping regulation governing food processing, little of which was written with shared-use facilities in mind. They may even be required to obtain licensing and inspection just to provide the space for clients to pursue their businesses. Despite these challenges, demand for their services is driving a rapid growth in multi-user food service facilities. Multi-user food service facilities vary considerably in terms of both users and services. Lists targeted at food entrepreneurs looking for shared production space, lists more than 700 "shared-use" kitchens in the US. These are user-submitted, however, and may include community kitchens and rental spaces with limited or no support for entrepreneurs. A 2016 national survey conducted by Econsult Solutions divided multi-user facilities into four types, based on services offered, member type, and business growth stage. Incubator ;> Accelerator • Space only • Space only • Space and • Space and • Primarily non- • Primarily support support business business • Early stage • Growing businesses businesses The same survey found over 200 facilities fitting the definition of incubator or accelerator, an increase of more than 50%from 2013. The core idea of the Renton Food Service Center proposal is to use to use two existing spaces, one 4,000 square feet and the second is just under 2,000 square feet to create a combination of commercial kitchen, food service incubator with retail space. The facilities could be used for the aggregation, processing and selling of Renton based food and products. From what we know at this time, this proposed program has two elements—the first is the physical facilities including the design and development of the space with options for commercial kitchen, dining and retail sales. The second element is the business model which will include the design and development of the various revenue generating programs using the space. (425) 260-8603 Create Your Desirable Future www.orcahrsolutions.com A Blend of Common Uses Because a critical requirement for the program is the ability to cover operating costs by generating revenue, the initial design and feasibility of various revenue generating programs has been assigned to a group of business students from the School of Business at the University of Washington Bothell.They will be exploring and evaluating a wide range of possible program options. Commercial Kitchen Space 40%of Incubators Are Involved The Commercial Kitchen can be used for a Food Service in at Least One Partnership Incubator and Accelerator program.The incubator program would use the space to develop and prepare Does your facility include orate you local startups looking to launch and run various food Part of any of the following? related enterprises including catering, restaurants, Workforce Training cafes and retail sales operations. An Accelerator P'o7x^ program would use the space for existing Non-FoodFRttatec! 2, entrepreneurs seeking to grow out of the micro Shared Space enterprise or cottage industry stage. Other possible o .urwrersay. xor+6 or Technicat School uses of the Commercial Kitchen facility include a Food 4ff t Community Kitchen program for feeding others, space Orstriut ooxr of cooking classes, and advanced food prep and storage Pubtic market for family meals. Farmers Market Retail Space S ermarket ` Food Bank of <w Space allocated for retail uses might include fixed or Pantry rotating food service startups like a Café, Bakery, Deli, , t0 20 30 Candy, and retail sales of local agriculture and Res rs( ) processed food products. This space can also be used for Pop-up Retail which are temporary locations used for testing new products or concepts in the market. Other Space Other food related ideas being explored include a full-service restaurant and a facility for aquaponics agriculture. Other Revenue What are the greatest needs of your tenants/members? There is also a possibility of generating revenue Access to Kitchen Space and Eguipatent associated with the facility that does not require use of the facility;these are billable business support Market Opportunities for Setting Product services. All business owners struggle with the need to 13 En Business Planning do accounting, marketing and other administrative 14 es Access to AffordabteIngredients functions that support the operation of their business. its These services can be made available to all small Access to Operating Capitat businesses in the area of Renton neighborhoods. 16 Product Devetopment Distribution/Logistics (425) 260-8603 Create Your Desirable Future www.orcahrsolutions.com Our Proposed Approach to Support Based on the information provided by the City of Renton, the Port of Seattle and produced by the students so far, we believe we can offer professional services to support the development of an Urban Food Service Center. Our proposed area of support would include professional services consulting, which will include, but not be limited to advisory,facilitation and program management. • Advisory Through the nature of competitive innovation,the economic world around us is constantly evolving. We offer professional Advisory Services from the minds of progressive business thinkers. By assessing the dynamic environment around us and analyzing economic performance, we advise on the best course of action to create economic value through entrepreneurial development and the growth of small business ownership. • Facilitation We have found that leading a diverse group of stakeholders and building consensus for community decision-making can be a challenge. Our facilitators are professionals focused the process of designing and running a productive, impartial and successful meeting. • Program Management and Leadership We see program management as the process of strategically managing several related projects. Core to success are management skills that include good knowledge of budgeting, resource allocation and the ability to find innovative ways to resolve problems. We also believe it requires a good understanding of the broader strategic objectives of the program, strong leadership the ability to work positively with the wide range of individuals across a multitude of stakeholder interests. • Project Management We believe effectively managing project work is critical to the success of any program.Through the practice of planning, executing and controlling the work of a project team project professionals help achieve goals and objectives in order to meet specific success criteria at the specified time. Our efforts would be led by Dean Van Dyke and staffed by additional consultants as needed. Our team shall provide professional services which include all work needed as well as all materials needed to produce deliverable described in a Scope Document and Statement of Work set out in a professional services agreement. Such work shall be performed using facilities, equipment and staff provided by our firm, and shall be performed in accordance with all applicable federal, state and local laws, ordinances and regulations. Our consultants shall exercise reasonable care and judgment in the performance of work pursuant to any Agreement.The consultants will be able to make minor changes, amendments or revisions in the detail of the work as may be required by the City, as long as such work not to constitute Extra Work as determined by the agreed to scope. (425) 260-8603 Create Your Desirable Future www.orcahrsolutions.com Proposed Consulting Work — Breadth of Scope 1. Discovery and Alignment Review all existing assessments, economic trends and research information to craft a strategic direction and alignment with the overall economic development strategy 2. Program Approach and Initiation Based on the desired strategic outcomes,formulate an approach and an outline of strategic initiatives 3. Program Planning and Execution d. Identify Initial Projects, Scope, Budget and Timing e. Plan and approve projects f. Fund and execute projects Proposed Statement of Work Milestones Activities: Food Service Center Initiative 8. Food Market Analysis—Port of Seattle 9. Feasibility Analysis—University of Washington Bothell a. Assessment of Commercial Kitchen Uses—University of Washington Bothell b. Value System Design— University of Washington Bothell c. Program Alternatives— University of Washington Bothell 10. Proposed Food Service Center Action Plan (Dynamic) 11. Community Go/No Go Decisions 12. Develop Project Plans and Budgets 13. Program Alignment 14. Multi-Phase Execution (425) 260-8603 Create Your Desirable Future www.orcahrsolutions.com Initial Proposed Food Service Center Efforts Physical Facilities Originally built in 1928, the space will need some extensive renovation and investment in terms of equipment. The proposal has identified a five-phase project related to the physical facility: • 1—Facility Layout and Design: This project will be somewhat iterative in nature because it will involve exploring the relationship between different combinations of operating programs and equipment needs. • 2—Interior Demolition: This will have two phases—a cleanup phase for cleaning out old and obsolete tenant improvements; and a re-engineering phase for structural changes • 3 — Interior Construction:The structural and systems build out. • 4—Tenant improvements:The installation of equipment and furnishings • 5— Finish and Decor: Paint,flooring, wall art etc. Program related projects: Program Development • Incubator and Accelerator Program (Bakery, Deli, Café, Food Truck, Restaurant) • Retail Sales and Popup program (Cookies, Bread, Sandwiches, Coffee, food products) • Community Kitchen Program (Hungry, Cook-Off, family meals, Food Prep, holidays, Video Production) • Food Service Support Program (Support of Restaurant, Food Truck and Catering) • Cooking School (Children, Young Adults, Exotic Meals) • Food Service Training & Certification Program (Food Handling and Safety) • Small Business Service Support (The incubator will be capable of providing support services to small business owners in the form of Accounting, Finance, Staffing, IT, Legal and Marketing services. • Entrepreneurship Development(Workshops, mentoring, SBA/SCORE/SBDC) • Facilities/User/Member Management & Scheduling System (Software, hardware and training) • Community Outreach & Marketing Campaigns (Local traditional and digital advertising and promotions) (425) 260-8603 Create Your Desirable Future www.orcahrsolutions.com At this point, without the final reports from the University of Washington students, design concepts and construction estimates, it would be extremely difficult to determine a rough estimate the number of hours needed to accomplish these tasks.As a general rule, the amount of time needed to project, and program manage tends to be between 10%and 15%of the total labor hours.Similar projects have ranged from 300 to 1,500 hours. Based on past programs we have included this rough schedule based on similar efforts. Activity Dates Comments UW Feasibility Study May June 2019 UW Business Plan June July 2019, plus Specifics needed on financials; more clarity ongoing revisions around anchor tenants and custom processing Secure Financing Q3, Q4 2019 Q1-4 Potential for multiple grants& local partnerships 2020,Q1-4 2021,Q1-2 2012 Site Selection Locked Q2, 2019 Review local options, secure proposed location Design Facility Q3, 2019 Hire architect for facility design Policy Development Q4 2020-Q3 2021 Review other incubator policies, craft policies prior to launch Phase One Construction Q3—Q4 2019 Ground breaking through launch Employees Q4, 2019 Hire of kitchen manager 3-6 months prior to launch Phase One Equipment Q3-Q4 2019 Based on anchor tenants needs and perceived Purchases/ Donations needs in 2019 Phase One Marketing Ongoing Awareness Recruit initial tenants, focus on anchor tenant and farm processing clients Facility Opening Q4 2019 Open house, press event, media coverage, outreach to funders Phase Two Construction Q4, 2020—Q4 2021 Phase Two Equipment Q1-4, 2020 Purchases/ Donations Phase Two Marketing Heavy push 2021 Phase Three Construction Q4, 2020—Q4 2021 (425) 260-8603 Create Your Desirable Future www.orcahrsolutions.com Phase Three Equipment Q1-4 2021 Purchases/ Donations This Proposal: We are submitting this as an unsolicited proposal, which means it is not responding to a formal request (RFI, RFQ RFP, etc.) This written proposal is for a unique or innovative idea that is being submitted to your agency on the initiative of the offeror for the purpose of obtaining a consulting contract with the City of Renton. Next Steps: Because this is an unsolicited proposal, it is based on a perspective developed with limited information and insight. It is our intent to review and discuss our proposal with the intent to better understanding perspectives, objectives and budgetary constraints; then explore the need refine the scope and statement of work accordingly. Thank You We appreciate the opportunity to be a part of your city's development and success within your organization and are looking forward to beginning the above service project with you. Receipt of Proposal: Upon receipt of this proposal, an electronic signature will be requested via DocuSign to commence work. Client Name Date ORCA HR Solutions, LLC Date (425) 260-8603 Create Your Desirable Future www.orcahrsolutions.com