HomeMy WebLinkAboutContract CAG-19-1:.
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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.
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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.
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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
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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
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,4 , ,$,±,; +q r Business Strategy,Architecture,
,.. i u_ � � w� iy ) ` Transformation and Operational
Wig' ! • ., Aar
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�� $ ,�. , ,., z,G, 1�N44 Dean's areas of expertise include
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Improvement, Entrepreneurship,
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"'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.
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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
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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.
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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
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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)
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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
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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
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