Resolution No. 86021
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RESOLUTION NO. 8602
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
CONSULTING AGREEMENT BY AND BETWEEN THE CITY OF
VERNON AND JOE FURNISH FOR THE REAL ESTATE LAND
ACQUISITION PROGRAM
WHEREAS, the City of Vernon has determined that it needs the
services of a consultant to assist the City with property valuations
and land acquisition and/or sale of industrial real estate (hereinafter
referred to as the "Real Estate Land Acquisition Program"); and
WHEREAS, the City of Vernon desires to engage the services
of Joe Furnish as a real estate consultant for matters concerning the
Real Estate Land Acquisition Program; and
WHEREAS, on November 17, 2004, the Finance Committee
considered the recommendation of Bruce V. Malkenhorst, the Director of
Finance, dated November 10, 2004, that an agreement with Joe Furnish
be approved and executed; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (a) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to enter into a consulting agreement with Joe Furnish.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the Consulting Agreement with Joe Furnish, in substantially
1 the same form as the copy which is attached hereto as Exhibit A and
2 incorporated by reference.
3 SECTION 3: The City Council of the City of Vernon hereby
4 authorizes the Mayor and the City Clerk to execute said Agreement for,
5 and on behalf of, the City of Vernon.
6 SECTION 4: The City Council of the City of Vernon hereby
7 directs the City Clerk, or his designee, to send one fully executed
8 Agreement to:
9 Joe Furnish
4100 West Alameda Avenue, Suite 103
10 Burbank, CA 91505
11 SECTION 5: The City Clerk of the City of Vernon shall
12 certify to the passage of this resolution, and thereupon and
13 thereafter the same shall be in full force and effect.
14 APPROVED AND ADOPTED this 17th day of November, 2004.
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17 = LEONIS C. MALB RG, Ma or
ATTES
18-�' _
19 BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8602, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday,
November 17, 2004, and thereafter was duly signed by the Mayor of the
City of Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
- 3 -
EXHIBIT
VA,
CONSULTING AGREEMENT
This Agreement, executed this 17th day of November, 2004, is entered into and
executed in duplicate originals, either copy of which may be considered and used as the
original hereof for all purposes, by and between the City of Vernon ("the City") and Joe
Furnish ("Furnish"), 4100 West Alameda Avenue, Suite 103, Burbank, CA 91505.
WHEREAS, the City is in need of obtaining expert industrial real estate advice
concerning appropriate property valuations and assistance in land acquisitions; and
WHEREAS, Furnish is experienced in industrial real estate transactions; and
WHEREAS, City desires to obtain the services of Furnish to provide and assist
the City in the acquisition and/or sale of industrial real estate in Vernon.
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
Scope of Services.
The City retains Furnish to act as a consultant to represent the City in the
acquisition of properties within the City of Vernon on a month -to -month basis. Fumish's
scope of services shall be assigned by the City Administrator and/or his designee, and
may include, but not be limited to, the following services:
(a) Providing market information, negotiation of business terms
including purchase price and transaction timeliness, supervision of the escrow transfer
process, review of title insurance documentation, review of environmental and soils
Phase 1 and Phase 2 reports, review of construction and development analysis, in order to
assist the City in the acquisition process; and
(b) Conducting a review of industrial real estate sites located in the
City and making recommendations on potential sites for possible acquisition by the City;
2. Term.
The term of this Agreement shall commence on November 17, 2004 and shall
continue through November 17, 2005, with an option to renew said Agreement on a year-
to-year basis on the same terms and conditions as prescribed in this Agreement, subject to
City's right to terminate the services provided for herein on thirty (30) days written
notice.
3. Compensation.
City shall pay Furnish a monthly fee of Twelve Thousand Five Hundred Dollars
($12,500) for the duration of this agreement. The first month's payment of Twelve
Thousand Five Hundred Dollars ($12,500) shall accompany this Agreement. Thereafter,
each month's payment of Twelve Thousand Five Hundred Dollars ($12,500) is agreed to
be due and payable, without additional notice or demand, on or before the fifteenth (15t')
day of each calendar month beginning on or before December 15, 2004.
4. Relationship of Parties.
Furnish shall conform with any instruction given by City Administrator or his
designee to Furnish from time to time and may not make any representation, promise,
contract, agreement or do any other act binding City. City is not responsible for any act
or failure to act by Furnish in excess of or contrary to City's instruction. Except as the
City may specify in writing, Furnish shall have no authority, express or implied, to act on
behalf of the City in any capacity whatsoever as an agent. Furnish shall have no
authority, express or implied, pursuant to this Agreement to bind the City to any
obligation whatsoever. All negotiations with respect to any industrial real estate shall
only be undertaken pursuant to written instructions given by City. Furnish shall have
permission to contact respective property owners on behalf of City to solicit sales or
purchase information on behalf of City.
Indemnification.
During the term of this agreement, the City agrees to indemnify and defend
Furnish against any and all claims made by third parties as a result of any lawful activity
engaged in by Furnish hereunder with the prior consent and approval of the City.
Conversely, Furnish agrees to indemnify and defend against any and all claims made by
third parties as a result of any activity engaged in by Furnish without the prior consent
and approval of the City.
6. Interests of Furnish.
Furnish affirms that he presently has no interest and shall not have any interest,
direct or indirect in any real property in the City or any other interest, which would
conflict in any manner with performance of the services contemplated by this Agreement.
No person having such interest shall be employed by or be associated with Furnish.
7. Products of Consultine.
All documents, data, studies, drawings, models, and reports prepared by Furnish
under this Agreement, with the exception of Confidential Information provided by
businesses located in City, shall be considered the property of City. All such information
prepared or assembled by Furnish in connection with the performance of his services
pursuant to this Agreement is confidential until released by the City to the public and
Furnish agrees that such documents shall not be available to any individual or
organization without the written consent of the City prior to such release. Furnish shall
deliver such documents and materials to the City as they are generated; however, Furnish
2
may take and retain copies of said documents and materials that are not confidential
information, as desired.
8. Conflicts of Interest.
In the event that a potential conflict should arise between the interests of the City
and the interests of any one of Furnish' other clients, during Furnish' performance of
services under this Agreement, Furnish shall notify City of such potential conflict.
Notice of the existence of a potential conflict of interest shall be given in writing to City
within ten (10) days of the perceived conflict. The conflict of interest letter shall specify
when the potential conflict arose, the identity of the other party(ies) and the facts that
give rise to the potential conflict. In the event that a potential conflict of interest is
deemed by City to be an actual conflict of interest, City may, at its discretion, terminate
this Agreement immediately.
9. Standard of Care.
All of the work shall be performed by Furnish or under Furnish's supervision.
Furnish represents that Furnish employs the professional and technical personnel required
to perform the services required by the City and that Furnish possesses appropriate
equipment to perform all services. All services shall be performed by qualified and
experienced personnel who are not employed by City nor have any contractual
relationship with City. Furnish shall be responsible to City for any errors or omissions in
the performance of this Agreement. Furnish represents and warrants that Furnish will
keep in effect all licenses, permits, and other approvals required to perform the described
services during the term of this Agreement, including any extensions thereto.
10. Confidential Information.
a. Access to Confidential Information. City may provide Furnish
with, or allow Furnish and/or its subcontractor with, or allow Furnish access to, certain
information not available to the public concerning, but not limited to City, or businesses
located in City. The information may include, but is not limited to, company
information, taxes, sales, value of assets, utility usage, confidential policies, or other such
information. All such information shall be known as "Confidential Information" and may
not be used to circumvent the responsibility of either party to this Agreement.
b. No Disclosure. Except as expressly permitted, Furnish and/or its
subcontractor shall not disclose, permit the disclosure of, release, disseminate, or transfer,
whether orally or by any other means, any part of such Confidential Information to any
other person or entity, whether corporate, governmental, or individual, without the
express prior written consent of an authorized representative of City. Furnish and/or its
subcontractor shall return any written Confidential Information, and all copies made of
such items, to City upon City's written request, but in any event not later than the date
that the Furnish has performed all services to be performed pursuant to this Agreement.
Furnish hereby agrees that such Confidential Information and any documents provided
3
may be used by Furnish and/or its subcontractor only as authorized by City. Furnish shall
include a contract provision in its contract with subcontractors that binds the
subcontractors to this non -disclosure requirement. Furnish shall take reasonable
measures to avoid any disclosure of any such Confidential Information to any
unauthorized person.
C. Court Ordered Disclosure. Furnish shall immediately notify City
of any court order or subpoena requiring disclosure of Confidential Information, and shall
cooperate with legal counsel in responding to any such order or subpoena. Furnish may
only disclose Confidential Information required to be disclosed pursuant to court order or
subpoena after legal counsel has exhausted any lawful and timely appeal or challenge.
d. Remedies. In addition to any other remedies that it may have at
law or in equity, City shall be entitled to a temporary and permanent injunction by a court
of competent jurisdiction against any breach or threatened breach of the Confidential
Information provisions of this Agreement. Furnish acknowledges that in case of such
breach or threatened breach of said provisions, City would have no adequate remedy at
law.
11. Disputes.
Any dispute that may arise as a result of actions by either party to this Agreement,
if unresolved after 90 days, shall be presented to Judicial Arbitration and Medication
Services, Inc. for resolution. Any costs of the arbitration hearing shall be borne by the
party adjudged culpable.
12. Termination.
This Agreement may be terminated by the City without cause on thirty (30) days
written notice to Furnish. Furnish shall be entitled to the compensation earned by it prior
to the date of the termination notice, computed on a pro rata basis up to and including the
date of termination, plus any work authorized in the termination notice.
13. Notices. Notices to the parties, unless otherwise requested in writing,
shall be sent to:
City: THE CITY OF VERNON
ATTN: BRUCE V. MALKENHORST
CITY ADMINISTRATOR
4305 SANTA FE AVENUE
VERNON, CA 90058-0805
Furnish: JOE FURNISH
4100 WEST ALAMEDA AVENUE
BURBANK, CA 91505
4
14. General Provisions.
a. Independent Contractor. At all times during the term of this
Agreement, Furnish shall be an independent contractor and shall not be an employee of
City. City shall have the right to control Furnish only insofar as the results of Furnish'
services rendered pursuant to this Agreement; however, City shall not have the right to
control the means by which Furnish accomplishes services rendered pursuant to this
Agreement except to the extent that such services involve the use of City property or
Confidential Information.
b. Furnish Not Agent. Except as City may specify in writing
Furnish shall have no authority, express or implied, to act on behalf of City in any
capacity whatsoever as an agent. Furnish shall have no authority, expressed or implied,
pursuant to this Agreement to bind City to any obligation whatsoever.
C. Assignment and Subcontracting Prohibited. Furnish may not
assign or subcontract any right or obligation of this Agreement except with the express
written consent of City. Any other attempted or purported assignment of any right or
obligation pursuant to this Agreement shall be void and of no effect.
d. Amendments. This Agreement may be modified or amended
only by a written document executed by both Furnish and City and approved as to form
by the City Attorney.
e. Benefit Of Agreement. This Agreement shall bind and benefit
the parties hereto and their heirs, successors, and permitted assigns.
f. Governing Law. The validity, interpretation and performance of
this Agreement shall be controlled and construed under the laws of the State of California
as enacted and in force at the time this Agreement is executed.
g. Forum Selection. Any action brought relating to this Agreement
shall be brought and held exclusively in a State Court in the County of Los Angeles,
California.
h. Entire Agreement. This Agreement is the entire agreement of the
parties. Furnish represents that in entering into this Agreement, he has not relied on any
previous representations or understandings of any kind or nature.
i. Attorney's Fees. In the event that it becomes necessary for either
party to this Agreement to enforce any of the provisions of this Agreement, the parties
agree that a court of competent jurisdiction may determine and fix reasonable attorney's
fees to be paid to the successful litigant.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by and through their authorized officers on the date, month and year first written above.
City of Vernon Joe Furnish, a Sole Proprietor
LM
LEONIS C. MALBURG
Mayor
ATTEST:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
ERIC T. FRESCH, City Attorney
Lo
JOE FURNISH
Cel
SUPPORTING
DOCUMENTS
CONSULTING AGREEMENT
This Agreement, executed this 17t' day of November, 2004, is entered into and
executed in duplicate originals, either copy of which may be considered and used as the
original hereof for all purposes, by and between the City of Vernon ("the City") and Joe
Furnish ("Furnish"), 4100 West Alameda Avenue, Suite 103, Burbank, CA 91505.
WHEREAS, the City is in need of obtaining expert industrial real estate advice
concerning appropriate property valuations and assistance in land acquisitions; and
WHEREAS, Furnish is experienced in industrial real estate transactions; and
WHEREAS, City desires to obtain the services of Furnish to provide and assist
the City in the acquisition and/or sale of industrial real estate in Vernon.
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. Scope of Services.
The City retains Furnish to act as a consultant to represent the City in the
acquisition of properties within the City of Vernon on a month -to -month basis. Furnish's
scope of services shall be assigned by the City Administrator and/or his designee, and
may include, but not be limited to, the following services:
(a) Providing market information, negotiation of business terms
including purchase price and transaction timeliness, supervision of the escrow transfer
process, review of title insurance documentation, review of environmental and soils
Phase 1 and Phase 2 reports, review of construction and development analysis, in order to
assist the City in the acquisition process; and
(b) Conducting a review of industrial real estate sites located in the
City and making recommendations on potential sites for possible acquisition by the City;
2. Term.
The term of this Agreement shall commence on November 17, 2004 and shall
continue through November 17, 2005, with an option to renew said Agreement on a year-
to-year basis on the same terms and conditions as prescribed in this Agreement, subject to
City's right to terminate the services provided for herein on thirty (30) days written
notice.
3. Compensation.
City shall pay Furnish a monthly fee of Twelve Thousand Five Hundred Dollars
($12,500) for the duration of this agreement. The first month's payment of Twelve
Thousand Five Hundred Dollars ($12,500) shall accompany this Agreement. Thereafter,
each month's payment of Twelve Thousand Five Hundred Dollars ($12,500) is agreed to
be due and payable, without additional notice or demand, on or before the fifteenth (151h)
day of each calendar month beginning on or before December 15, 2004.
4. Relationship of Parties.
Furnish shall conform with any instruction given by City Administrator or his
designee to Furnish from time to time and may not make any representation, promise,
contract, agreement or do any other act binding City. City is not responsible for any act
or failure to act by Furnish in excess of or contrary to City's instruction. Except as the
City may specify in writing, Furnish shall have no authority, express or implied, to act on
behalf of the City in any capacity whatsoever as an agent. Furnish shall have no
authority, express or implied, pursuant to this Agreement to bind the City to any
obligation whatsoever. All negotiations with respect to any industrial real estate shall
only be undertaken pursuant to written instructions given by City. Furnish shall have
permission to contact respective property owners on behalf of City to solicit sales or
purchase information on behalf of City.
5. Indemnification.
During the term of this agreement, the City agrees to indemnify and defend
Furnish against any and all claims made by third parties as a result of any lawful activity
engaged in by Furnish hereunder with the prior consent and approval of the City.
Conversely, Furnish agrees to indemnify and defend against any and all claims made by
third parties as a result of any activity engaged in by Furnish without the prior consent
and approval of the City.
6. Interests of Furnish.
Furnish affirms that he presently has no interest and shall not have any interest,
direct or indirect in any real property in the City or any other interest, which would
conflict in any manner with performance of the services contemplated by this Agreement.
No person having such interest shall be employed by or be associated with Furnish.
7. Products of Consultiniz.
All documents, data, studies, drawings, models, and reports prepared by Furnish
under this Agreement, with the exception of Confidential Information provided by
businesses located in City, shall be considered the property of City. All such information
prepared or assembled by Furnish in connection with the performance of his services
pursuant to this Agreement is confidential until released by the City to the public and
Furnish agrees that such documents shall not be available to any individual or
organization without the written consent of the City prior to such release. Furnish shall
deliver such documents and materials to the City as they are generated; however, Furnish
2
may take and retain copies of said documents and materials that are not confidential
information, as desired.
8. Conflicts of Interest.
In the event that a potential conflict should arise between the interests of the City
and the interests of any one of Furnish' other clients, during Furnish' performance of
services under this Agreement, Furnish shall notify City of such potential conflict.
Notice of the existence of a potential conflict of interest shall be given in writing to City
within ten (10) days of the perceived conflict. The conflict of interest letter shall specify
when the potential conflict arose, the identity of the other party(ies) and the facts that
give rise to the potential conflict. In the event that a potential conflict of interest is
deemed by City to be an actual conflict of interest, City may, at its discretion, terminate
this Agreement immediately.
9. Standard of Care.
All of the work shall be performed by Furnish or under Furnish's supervision.
Furnish represents that Furnish employs the professional and technical personnel required
to perform the services required by the City and that Furnish possesses appropriate
equipment to perform all services. All services shall be performed by qualified and
experienced personnel who are not employed by City nor have any contractual
relationship with City. Furnish shall be responsible to City for any errors or omissions in
the performance of this Agreement. Furnish represents and warrants that Furnish will
keep in effect all licenses, permits, and other approvals required to perform the described
services during the term of this Agreement, including any extensions thereto.
10. Confidential Information.
a. Access to Confidential Information. City may provide Furnish
with, or allow Furnish and/or its subcontractor with, or allow Furnish access to, certain
information not available to the public concerning, but not limited to City, or businesses
located in City. The information may include, but is not limited to, company
information, taxes, sales, value of assets, utility usage, confidential policies, or other such
information. All such information shall be known as "Confidential Information" and may
not be used to circumvent the responsibility of either party to this Agreement.
b. No Disclosure. Except as expressly permitted, Furnish and/or its
subcontractor shall not disclose, permit the disclosure of, release, disseminate, or transfer,
whether orally or by any other means, any part of such Confidential Information to any
other person or entity, whether corporate, governmental, or individual, without the
express prior written consent of an authorized representative of City. Furnish and/or its
subcontractor shall return any written Confidential Information, and all copies made of
such items, to City upon City's written request, but in any event not later than the date
that the Furnish has performed all services to be performed pursuant to this Agreement.
Furnish hereby agrees that such Confidential Information and any documents provided
3
maybe used by Furnish and/or its subcontractor only as authorized by City. Furnish shall
include a contract provision in its contract with subcontractors that binds the
subcontractors to this non -disclosure requirement. Furnish shall take reasonable
measures to avoid any disclosure of any such Confidential Information to any
unauthorized person.
C. Court Ordered Disclosure. Furnish shall immediately notify City
of any court order or subpoena requiring disclosure of Confidential Information, and shall
cooperate with legal counsel in responding to any such order or subpoena. Furnish may
only disclose Confidential Information required to be disclosed pursuant to court order or
subpoena after legal counsel has exhausted any lawful and timely appeal or challenge.
d. Remedies. In addition to any other remedies that it may have at
law or in equity, City shall be entitled to a temporary and permanent injunction by a court
of competent jurisdiction against any breach or threatened breach of the Confidential
Information provisions of this Agreement. Furnish acknowledges that in case of such
breach or threatened breach of said provisions, City would have no adequate remedy at
law.
11. Dis utes.
Any dispute that may arise as a result of actions by either party to this Agreement,
if unresolved after 90 days, shall be presented to Judicial Arbitration and Medication
Services, Inc. for resolution. Any costs of the arbitration hearing shall be borne by the
party adjudged culpable.
12. Termination.
This Agreement may be terminated by the City without cause on thirty (30) days
written notice to Furnish. Furnish shall be entitled to the compensation earned by it prior
to the date of the termination notice, computed on a pro rata basis up to and including the
date of termination, plus any work authorized in the termination notice.
13. Notices. Notices to the parries, unless otherwise requested in writing,
shall be sent to:
City. THE CITY OF VERNON
ATTN: BRUCE V. MALKENHORST
CITY ADMINISTRATOR
4305 SANTA FE AVENUE
VERNON, CA 90058-0805
Furnish: JOE FURNISH
4100 WEST ALAMEDA AVENUE
BURBANK, CA 91505
4
14. General Provisions.
a. Independent Contractor. At all times during the term of this
Agreement, Furnish shall be an independent contractor and shall not be an employee of
City. City shall have the right to control Furnish only insofar as the results of Furnish'
services rendered pursuant to this Agreement; however, City shall not have the right to
control the means by which Furnish accomplishes services rendered pursuant to this
Agreement except to the extent that such services involve the use of City property or
Confidential Information.
b. Furnish Not Agent. Except as City may specify in writing
Furnish shall have no authority, express or implied, to act on behalf of City in any
capacity whatsoever as an agent. Furnish shall have no authority, expressed or implied,
pursuant to this Agreement to bind City to any obligation whatsoever.
C. Assipnent and Subcontracting Prohibited. Furnish may not
assign or subcontract any right or obligation of this Agreement except with the express
written consent of City. Any other attempted or purported assignment of any right or
obligation pursuant to this Agreement shall be void and of no effect.
d. Amendments. This Agreement may be modified or amended
only by a written document executed by both Furnish and City and approved as to form
by the City Attorney.
e. Benefit Of Agreement. This Agreement shall bind and benefit
the parties hereto and their heirs, successors, and permitted assigns.
f. Governing Law. The validity, interpretation and performance of
this Agreement shall be controlled and construed under the laws of the State of California
as enacted and in force at the time this Agreement is executed.
g. Forum Selection. Any action brought relating to this Agreement
shall be brought and held exclusively in a State Court in the County of Los Angeles,
California.
h. Entire A eement. This Agreement is the entire agreement of the
parties. Furnish represents that in entering into this Agreement, he has not relied on any
previous representations or understandings of any kind or nature.
i. Attorney's Fees. In the event that it becomes necessary for either
party to this Agreement to enforce any of the provisions of this Agreement, the parties
agree that a court of competent jurisdiction may determine and fix reasonable attorney's
fees to be paid to the successful litigant.
E
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by and through their authorized officers on the date, month and year first written above.
City of Vernon
By. _ R ,
�EONIS C. MALB G
Mayor
ATTEST:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
C -'7a
ERIC T. FRIESCH, INty Attorney
0
Joe Furnish, a Sole Proprietor