HomeMy WebLinkAbout02/17/2015 12 Yakima Convention Center Consulting Services Agreement with Kidder MathewsBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 12.
For Meeting of: February 17, 2015
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ITEM TITLE: Resolution authorizing an agreement for Consulting Services
with Kidder Mathews to evaluate current meeting and
convention market trends, hotel demand and related
conditions concerning the Yakima Convention Center to
maximize services and opportunities offered in the future
SUBMITTED BY: Sean Hawkins, Economic Development Manager - 575-6274
SUMMARY EXPLANATION:
The City has not conducted an analysis of how well the Yakima Convention Center is keeping
up with the changing trends of hotel and convention services it provides in nearly ten years. In
order to be sure the Convention Center is reaching all available markets and maximizing the
opportunities to provide its services as well as to enhance the benefits it can provide to the City
and the businesses in the area, the City wishes to enter into an agreement for consulting
services with Kidder Mathews of Bellevue, WA to obtain a professional evaluation of the current
meeting and convention market trends, hotel demand and related conditions, all of which are
necessary to make decisions that will assist the Convention Center in better meeting current
and future needs and remain productive and competitive in the convention market.
Resolution: X
Other (Specify):
Contract: X
Start Date: Upon execution of contract
Item Budgeted: Yes
Funding Source/Fiscal
Impact:
Strategic Priority: Economic Development
Insurance Required? No
Mail to: John Gordon, Kidder Mathews, 500 108th Avenue NE,
Bellevue, WA 98004
Phone: 425-454-7040
Ordinance:
Contract Term: Six -eight weeks
End Date:
Amount: 16,000.00
Convention Center Capital Budget
APPROVED FOR
RECOMMENDATION:
City Manager
The Economic Development Committee voted to move this to the full Council on February 17,
2015 City Council meeting for adoption.
ATTACHMENTS:
Description
Resolution -Convention Center -Kidder Mathews
Consult Aqn,e'1-2015
Convention CenterKidder Mathews Consultant
Agreement
Convention Center -Kidder Mathews -Contract
Summary
Upload Date
1/30/2015
1/30/2015
1/30/2015
Type
Reso|ution
Contract
A RESOLUTION
RESOLUTION NO. R -2015 -
Authorizing and direct the City Manager to execute an Agreement for
Consulting Services on behalf of the City of Yakima for the Yakima
Convention Center.
WHEREAS, the City of Yakima owns the Yakima Convention Center in management
partnership with the Public Facilities District; and
WHEREAS, the Yakima Convention Center directly generates nearly $12.0 million
annually for the local economy from visitor related spending; and
WHEREAS, both the City of Yakima and the Public Facilities District have a common
interest in insuring that the Yakima Convention Center continues to be an important
economic driver for the City downtown area and the City of Yakima; and
WHEREAS, conditions in the meeting and convention market have changed in the
past five to ten years and the City wishes to conduct a professional study to accurately
evaluate the current meeting and convention market trends, hotel demand and related
conditions to assist the Convention Center in providing services that will allow the
Convention Center to remaining productive and competitive; and
WHEREAS, John Gordon of the Kidder Mathews firm located in Bellevue, WA has
the specialized expertise in real estate appraisal and assessment of lodging properties and
related facilities, together with the experience of having conducted a previous business
analysis of the convention and hotel market for the City of Yakima in 2008; and
WHEREAS, the assessment resulting from the completion of the work that is
provided by the Agreement for Consulting Services attached hereto and incorporated herein
by this reference will provide the City with a report that details the professional analysis of
market supply, market demand and historical and projected performance that will allow the
City to determine the most efficient and effective direction to obtain optimal operation and
success of the Yakima Convention Center, and
WHEREAS, the City Council has determined that it is in the best interest of the City
to utilize the expertise and experience of John Gordon and Kidder Mathews to provide the
City with the information and insight necessary to optimize the success of the Yakima
Convention Center; Now, Therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager of the City of Yakima is hereby authorized and directed to execute
the attached and incorporated Agreement for Consulting Services with Kidder Mathews of
Bellevue, WA. to provide the City with a report that details the professional analysis of
market supply, market demand and historical and projected performance that will allow the
City to determine the most efficient and effective direction to obtain optimal operation and
success from the Yakima Convention Center.
ADOPTED BY THE CITY COUNCIL this 17th day of February, 2015.
Micah Cawley, Mayor
ATTEST:
Sonya Claar Tee, City Clerk
For City of Yakima Use Only:
Contract No.
Project INa.
Resadluutiion No.
RIFQIPNo.
AGREEMENT
BETWEEN
CITY OF YAKIMA, WASHINGTON
AND
Kidder Mathews
FOR PROFESSIONAL SERVICES
THIS AGREEMENT, made and entered into on this day of , 2015, by and
between the City of Yakima, Washington, a municipal corporation with its principal office at 129 North
Second Street, Yakima, WA 98901, hereinafter referred to as "CITY", and Kidder Mathews. with its
principal office in Bellevue, WA, hereinafter referred to as "CONSULTANT"; said corporation is licensed
and registered to do business in the State of Washington, and will provide services under this Agreement
for consulting services to determine and evaluate the Yakima Convention Center market, hereinafter
referred to as "SERVICES" on behalf of the City of Yakima
WITNESSETH:
RECITALS
WHEREAS, CITY desires to retain the CONSULTANT to provide services described in this
Agreement, incorporated Exhibits and subsequent Amendments thereto; and
WHEREAS, CONSULTANT represents that it has available and offers to provide personnel with
knowledge and experience necessary to satisfactorily accomplish the work within the required time and that
it has no conflicts of interest prohibited by law from entering into this Agreement;
NOW, THEREFORE, CITY and CONSULTANT agree as follows:
SECTION 1 INCORPORATION OF RECITALS
1.1 The above recitals are incorporated into these operative provisions of the Agreement.
SECTION 2 SCOPE OF SERVICES
2.1 CONSULTANT agrees to perform those services described hereafter. Unless modified in writing
by both parties, duties of CONSULTANT shall not be construed to exceed those services
specifically set forth herein.
2.2 CONSULTANT shall use its best efforts to maintain continuity in personnel and shall assign, John
Gordon as Consultant -in -Charge throughout the term of this Agreement unless other personnel are
approved by the CITY.
2.3 Basic Services: CONSULTANT agrees to perform those tasks described in Exhibit A, entitled
"Scope of Work" (WORK) which is attached hereto and made a part of this Agreement as if fully
set forth herein.
2.4 Additional Services: CITY and CONSULTANT agree that not all WORK to be performed by
CONSULTANT can be defined in detail at the time this Agreement is executed, and that
additional WORK related to the Project and not covered in Exhibit A may be needed during
performance of this Agreement. CITY may, at any time, by written order, direct the
CONSULTANT to revise portions of the WORK previously completed in a satisfactory manner,
delete portions of the WORK, or request that the CONSULTANT perform additional WORK
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beyond the scope of the WORK. Such changes hereinafter shall be referred to as "Additional
Services."
2.4.1 If such Additional Services cause an increase or decrease in the CONSULTANT'S cost
of, or time required for, performance of any services under this Agreement, a contract
price and/or completion time adjustment pursuant to this Agreement shall be made and
this Agreement shall be modified in writing accordingly.
2.4.2 Compensation for each such request for Additional Services shall be negotiated by the
CITY and the CONSULTANT according to the provisions set forth in Exhibit B,
attached hereto and incorporated herein by this reference, and if so authorized, shall be
considered part of the WORK. The CONSULTANT shall not perform any Additional
Services until so authorized by CITY and agreed to by the CONSULTANT in writing.
2.5 The CONSULTANT must assert any claim for adjustment in writing within thirty (30) days from
the date of the CONSULTANT's receipt of the written notification of change.
SECTION 3 CITY'S RESPONSIBILITIES
3.1 CITY -FURNISHED DATA: The CITY will provide to the CONSULTANT all technical data in
the CITY'S possession relating to the CONSULTANT'S services on the WORK.
3.2 ACCESS TO FACILITIES AND PROPERTY: The CITY will make its facilities reasonably
accessible to CONSULTANT as required for CONSULTANT'S performance of its services and
will provide labor and equipment as reasonably required by CONSULTANT for such access.
3.3 TIMELY REVIEW: The CITY will examine the CONSULTANT'S studies, reports, proposals,
and other documents; obtain advice of an attorney, insurance counselor, accountant, auditor, bond
and financial advisors, and other consultants as CITY deems appropriate; and render in writing
decisions required of CITY in a timely manner. Such examinations and decisions, however, shall
not relieve the CONSULTANT of any contractual obligations nor of its duty to render
professional services meeting the standards of care for its profession.
3.4 CITY shall appoint a CITY'S Representative with respect to WORK to be performed under this
Agreement. CITY'S Representative shall have complete authority to transmit instructions and
receive information. CONSULTANT shall be entitled to reasonably rely on such instructions
made by the CITY'S Representative unless otherwise directed in writing by the CITY, but
CONSULTANT shall be responsible for bringing to the attention of the CITY'S Representative
any instructions which the CONSULTANT believes are inadequate, incomplete, or inaccurate
based upon the CONSULTANT'S knowledge.
3.5 Any documents, services, and reports provided by the CITY to the CONSULTANT are available
solely as additional information to the CONSULTANT and will not relieve the CONSULTANT of
its duties and obligations under this Agreement or at law. The CONSULTANT shall be entitled to
reasonably rely upon the accuracy and the completeness of such documents, services and reports,
but shall be responsible for exercising customary professional care in using and reviewing such
documents, services, and reports and drawing conclusions there from.
SECTION 4 AUTHORIZATION, PROGRESS, AND COMPLETION
4.1 In signing this Agreement, CITY grants CONSULTANT specific authorization to proceed with
WORK described in Exhibit A. The time for completion is defined in Exhibit A, or as amended.
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SECTION 5 COMPENSATION
5.1 COMPENSATION ON A TIME SPENT BASIS AT SPECIFIC HOURLY RATES: For the
services described in Exhibit A, compensation shall be according to Exhibit B - Schedule of
Specific Fees and Hourly Rates, attached hereto and incorporated herein by this reference, on a
time spent basis plus reimbursement for direct non -salary expenses.
5.1.1 DIRECT NON -SALARY EXPENSES: Direct Non -Salary Expenses are those costs
incurred on or directly for the PROJECT including, but not limited to, necessary
transportation costs, including current rates for CONSULTANT'S vehicles; meals and
lodging; laboratory tests and analyses; printing, binding and reproduction charges; all
costs associated with other outside nonprofessional services and facilities; special CITY -
requested and PROJECT -related insurance and performance warranty costs; and other
similar costs. Reimbursement for Direct Non -Salary Expenses will be on the basis of
actual charges plus ten percent (10%) and on the basis of current rates when furnished by
CONSULTANT. Estimated Direct Non -Salary Expenses are shown in Exhibit B.
5.1.1.1 Travel costs, including transportation, lodging, subsistence, and incidental
expenses incurred by employees of the CONSULTANT and each of the
Subconsultants in connection with PROJECT WORK; provided, as follows:
• That a maximum of U.S. INTERNAL REVENUE SERVICE allowed
cents per mile will be paid for the operation, maintenance, and
depreciation costs of company or individually owned vehicles for that
portion of time they are used for WORK. CONSULTANT, whenever
possible, will use the least expensive form of ground transportation.
• That reimbursement for meals inclusive of tips shall not exceed a
maximum of forty dollars ($40) per day per person. This rate may be
adjusted on a yearly basis.
• That accommodation shall be at a reasonably priced hotel/motel.
• That air travel shall be by coach class, and shall be used only when
absolutely necessary.
5.1.2 Telephone charges, computer charges, in-house reproduction charges, first class postage,
and FAX charges are not included in the direct expense costs, but are considered included
in the Schedule of Specific Hourly Billing Rates.
5.2 Unless specifically authorized in writing by the CITY, the total budgetary amount for this
PROJECT shall not exceed Sixteen Thousand Dollars ($16,000). The CONSULTANT will make
reasonable efforts to complete the WORK within the budget and will keep CITY informed of
progress toward that end so that the budget or WORK effort can be adjusted if found necessary.
The CONSULTANT is not obligated to incur costs beyond the indicated budget, as may be
adjusted, nor is the CITY obligated to pay the CONSULTANT beyond these limits. When any
budget has been increased, the CONSULTANT'S excess costs expended prior to such increase
will be allowable to the same extent as if such costs had been incurred after the approved increase,
and provided that the City was informed in writing at the time such costs were incurred.
5.3 Proposed Payment Schedule
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30 days from commencement
$8,000
Issuance of draft report
$8,000
TOTAL:
$16,000
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For any services authorized by the City beyond the fixed fee scope of work shall follow a monthly
payment schedule as follows: The CONSULTANT shall submit to the City's Representative an
invoice each month for payment for services completed through the accounting cut-off day of the
previous month. Such invoices shall be for services and WORK performed and costs incurred
prior to the date of the invoice and not covered by previously submitted invoices. The
CONSULTANT shall submit with each invoice a summary of time expended on the PROJECT for
the current billing period, and any other supporting materials determined by the City necessary to
substantiate the costs incurred. CITY will use its best efforts to pay such invoices within thirty
(30) days of receipt and upon approval of the WORK done and amount billed. CITY will notify
the CONSULTANT promptly if any problems are noted with the invoice. CITY may question
any item in an invoice, noting to CONSULTANT the questionable item(s) and withholding
payment for such item(s). The CONSULTANT may resubmit such item(s) in a subsequent
invoice together with additional supporting information required.
5.4 Payment terms are net 30 after receipt of approved invoice(s).
SECTION 6 RESPONSIBILITY OF CONSULTANT
6.1 INDEMNIFICATION:
(a) CONSULTANT agrees to defend, indemnify, and hold harmless the CITY, its elected
officials, agents, officers, employees, agents and volunteers (hereinafter "parties
protected") from (1) claims, demands, liens, lawsuits, administrative and other
proceedings,(including reasonable costs and attorneys fees) and (2) judgments, awards,
losses, liabilities, damages, penalties, fines, costs and expenses of any kind claimed by
third parties arising out of, or related to any death, injury, damage or destruction to any
person or any property to the extent caused by any negligent act, action, default, error or
omission or willful misconduct arising out of the CONSULTANT's performance under
this Agreement. In the event that any lien is placed upon the City's property or any of the
City's officers, employees or agents as a result of the negligence or willful misconduct of
the CONSULTANT, the CONSULTANT shall at once cause the same to be dissolved
and discharged by giving bond or otherwise.
(b)
CITY agrees to indemnify and hold the CONSULTANT harmless from loss, cost, or
expense of any kind claimed by third parties, including without limitation such loss, cost,
or expense resulting from injuries to persons or damages to property, caused solely by the
negligence or willful misconduct of the CITY, its employees, or agents in connection
with the service.
(c) If the negligence or willful misconduct of both the CONSULTANT and the CITY (or a
person identified above for whom each is liable) is a cause of such third party claim, the
loss, cost, or expense shall be shared between the CONSULTANT and the CITY in
proportion to their relative degrees of negligence or willful misconduct and the right of
indemnity will apply for such proportion.
(d) Nothing contained in this Section or this Agreement shall be construed to create a
liability or a right of indemnification in any third party.
6.2 In any and all claims by an employee of the CONSULTANT, any subcontractor, anyone directly
or indirectly employed by any of them, or anyone for whose acts any of them may be liable, the
indemnification obligations under this Agreement shall not be limited in any way by any
limitation on the amount or types of damages, compensation, or benefits payable by or for the
CONSULTANT or a subcontractor under workers' or workmens' compensation acts, disability
benefit acts, or other employee benefit acts.
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SECTION 7 AUDIT AND ACCESS TO RECORDS
7.1 The CONSULTANT, including its subconsultants, shall maintain books, records, documents and
other evidence directly pertinent to performance of the WORK under this Agreement in
accordance with generally accepted accounting principles and practices consistently applied. The
CITY, or the CITY'S duly authorized representative, shall have access to such books, records,
documents, and other evidence for inspection, audit, and copying for a period of three years after
completion of the WORK. The CITY shall also have access to such books, records, and
documents during the performance of the WORK, if deemed necessary by the CITY, to verify the
CONSULTANT'S WORK and invoices.
7.2 Audits conducted pursuant to this section shall be in accordance with generally accepted auditing
standards and established procedures and guidelines of the reviewing or auditing agency.
7.3 The CONSULTANT agrees to the disclosure of all information and reports resulting from access
to records pursuant to this section provided that the CONSULTANT is afforded the opportunity
for an audit exit conference and an opportunity to comment and submit any supporting
documentation on the pertinent portions of the draft audit report and that the final audit report will
include written comments, if any, of the CONSULTANT.
7.4 The CONSULTANT shall ensure that the foregoing paragraphs are included in each subcontract
for WORK.
7.5 Any charges of the CONSULTANT paid by the CITY which are found by an audit to be
inadequately substantiated shall be reimbursed to the CITY.
SECTION 8 INSURANCE
8.1 At all times during performance of the Services, CONSULTANT shall secure and maintain in
effect insurance to protect the City and the CONSULTANT from and against all claims, damages,
losses, and expenses arising out of or resulting from the performance of this Contract.
CONSULTANT shall provide and maintain in force insurance in limits no less than that stated
below, as applicable. The City reserves the rights to require higher limits should it deem it
necessary in the best interest of the public.
8.1.1 Commercial General Liability Insurance. Before this Contract is fully executed by the
parties, CONSULTANT shall provide the City with a certificate of insurance as proof of commercial
liability insurance and commercial umbrella liability insurance with a total minimum liability limit of
Two Million Dollars ($2,000,000.00) per occurrence combined single limit bodily injury and property
damage, and Two Million Dollars ($2,000,000.00) general aggregate. The certificate shall clearly state
who the provider is, the coverage amount, the policy number, and when the policy and provisions
provided are in effect. Said policy shall be in effect for the duration of this Contract. The policy shall
name the City, its elected officials, officers, agents, employees, and volunteers as additional insureds,
and shall contain a clause that the insured will not cancel or change the insurance without first giving
the City thirty (30) calendar days prior written notice. The insurance shall be with an insurance
company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington.
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8.1.2. Commercial Automobile Liability Insurance.
a. If CONSULTANT owns any vehicles, before this Contract is fully executed by
the parties, OIC shall provide the City with a certificate of insurance as proof of
commercial automobile liability insurance and commercial umbrella liability insurance
with a total minimum liability limit of Two Million Dollars ($2,000,000.00) per
occurrence combined single limit bodily injury and property damage. Automobile
liability will apply to "Any Auto" and be shown on the certificate.
b. If CONSULTANT does not own any vehicles, only "Non -owned and Hired
Automobile Liability" will be required and may be added to the commercial liability
coverage at the same limits as required in that section of this Contract, which is
Section 8.1.1 entitled "Commercial General Liability Insurance".
c. Under either situation described above in Section 8.1.2.a and Section 8.1.2.b, the
required certificate of insurance shall clearly state who the provider is, the coverage
amount, the policy number, and when the policy and provisions provided are in effect.
Said policy shall be in effect for the duration of this Contract. The policy shall name
the City, its elected officials, officers, agents, employees, and volunteers as additional
insureds, and shall contain a clause that the insured will not cancel or change the
insurance without first giving the City thirty (30) calendar days prior written notice.
The insurance shall be with an insurance company or companies rated A -VII or higher
in Best's Guide and admitted in the State of Washington.
8.1.3. Statutory workers' compensation and employer's liability insurance as required by state
law.
SECTION 9 SUBCONTRACTS
9.1 CONSULTANT shall be entitled, to the extent determined appropriate by CONSULTANT, to
subcontract any portion of the WORK to be performed under this Agreement.
SECTION 10 ASSIGNMENT
10.1 This Agreement is binding on the heirs, successors and assigns of the parties hereto. This
Agreement may not be assigned by CITY or CONSULTANT without prior written consent of the
other, which consent will not be unreasonably withheld. It is expressly intended and agreed that no
third party beneficiaries are created by this Agreement, and that the rights and remedies provided
herein shall inure only to the benefit of the parties to this Agreement.
SECTION 11 INTEGRATION
This Agreement along with the City RFP and the Consultant's response to the RFP represents the
entire understanding of CITY and CONSULTANT as to those matters contained herein. No prior
oral or written understanding shall be of any force or effect with respect to those matters covered
herein. This Agreement may not be modified or altered except in writing signed by both parties.
SECTION 12 JURISDICTION AND VENUE
12.1 This Agreement shall be administered and interpreted under the laws of the State of Washington.
Jurisdiction of litigation arising from this Agreement shall be in Washington State. If any part of
this Agreement is found to conflict with applicable laws, such part shall be inoperative, null, and
void insofar as it conflicts with said laws, but the remainder of this Agreement shall be in full
force and effect. Venue for all disputes arising under this Agreement shall be in a court of
competent jurisdiction in Yakima County, State of Washington.
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SECTION 13 EQUAL EMPLOYMENT and NONDISCRIMINATION
13.1 During the performance of this Agreement, CONSULTANT and CONSULTANT's
subconsultants shall not discriminate in violation of any applicable federal, state and/or local law
or regulation on the basis of age, sex, race, creed, religion, color, national origin, marital status,
disability, honorably discharged veteran or military status, pregnancy, sexual orientation, and any
other classification protected under federal, state, or local law. This provision shall include but not
be limited to the following: employment, upgrading, demotion, transfer, recruitment, advertising,
layoff or termination, rates of pay or other forms of compensation, selection for training, and the
provision of services under this Agreement. CONSULTANT agrees to comply with the
applicable provisions of State and Federal Equal Employment Opportunity and Nondiscrimination
statutes and regulations.
SECTION 14 SUSPENSION OF WORK
14.1 CITY may suspend, in writing by certified mail, all or a portion of the WORK under this
Agreement if unforeseen circumstances beyond CITY'S control are interfering with normal
progress of the WORK. CONSULTANT may suspend, in writing by certified mail, all or a
portion of the WORK under this Agreement if unforeseen circumstances beyond
CONSULTANT's control are interfering with normal progress of the WORK. CONSULTANT
may suspend WORK on PROJECT in the event CITY does not pay invoices when due, except
where otherwise provided by this Agreement. The time for completion of the WORK shall be
extended by the number of days WORK is suspended. If the period of suspension exceeds ninety
(90) days, the terms of this Agreement are subject to renegotiation, and both parties are granted the
option to terminate WORK on the suspended portion of Project in accordance with SECTION 15.
SECTION 15 TERMINATION OF WORK
15.1 Either party may terminate this Agreement, in whole or in part, if the other party materially
breaches its obligations under this Agreement and is in default through no fault of the terminating
party. However, no such termination may be effected unless the other party is given: (1) not less
than fifteen (15) calendar days written notice delivered by certified mail, return receipt requested,
of intent to terminate; and (2) an opportunity for consultation and for cure with the terminating
party before termination. Notice shall be considered issued within seventy-two (72) hours of
mailing by certified mail to the place of business of either party as set forth in this Agreement.
15.2 In addition to termination under subsection 15.1 of this Section, CITY may terminate this
Agreement for its convenience, in whole or in part, provided the CONSULTANT is given: (1) not
less than fifteen (15) calendar days written notice delivered by certified mail, return receipt
requested, of intent to terminate; and (2) an opportunity for consultation with CITY before
termination
15.3 If CITY terminates for default on the part of the CONSULTANT, an adjustment in the contract
price pursuant to the Agreement shall be made, but (1) no amount shall be allowed for anticipated
profit on unperformed services or other WORK, and (2) any payment due to the CONSULTANT
at the time of termination may be adjusted to the extent of any additional costs or damages CITY
has incurred, or is likely to incur, because of the CONSULTANT'S breach. In such event, CITY
shall consider the amount of WORK originally required which was satisfactorily completed to
date of termination, whether that WORK is in a form or of a type which is usable and suitable to
CITY at the date of termination and the cost to CITY of completing the WORK itself or of
employing another firm to complete it. Under no circumstances shall payments made under this
provision exceed the contract price. In the event of default, the CONSULTANT agrees to pay
CITY for any and all damages, costs, and expenses whether directly, indirectly, or consequentially
caused by said default. This provision shall not preclude CITY from filing claims and/or
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commencing litigation to secure compensation for damages incurred beyond that covered by
contract retainage or other withheld payments.
15.4 If the CONSULTANT terminates for default on the part of CITY or if CITY terminates for
convenience, the adjustment pursuant to the Agreement shall include payment for services
satisfactorily performed to the date of termination, in addition to termination settlement costs the
CONSULTANT reasonably incurs relating to commitments which had become firm before the
termination, unless CITY determines to assume said commitments.
15.5 Upon receipt of a termination notice under subsections 15.1 or 15.2 above, the CONSULTANT
shall (1) promptly discontinue all services affected (unless the notice directs otherwise), and (2)
deliver or otherwise make available to CITY all originals of data, drawings, specifications,
calculations, reports, estimates, summaries, and such other information, documents, and materials
as the CONSULTANT or its subconsultants may have accumulated or prepared in performing this
Agreement, whether completed or in progress, with the CONSULTANT retaining copies of the
same.
15.6 Upon termination under any subparagraph above, CITY reserves the right to prosecute the WORK
to completion utilizing other qualified firms or individuals; provided, the CONSULTANT shall
have no responsibility to prosecute further WORK thereon.
15.7 If, after termination for failure of the CONSULTANT to fulfill contractual obligations, it is
determined that the CONSULTANT has not so failed, the termination shall be deemed to have
been effected for the convenience of CITY. In such event, the adjustment pursuant to the
Agreement shall be determined as set forth in subparagraph 15.4 of this Section.
15.8 If, because of death, unavailability or any other occurrence, it becomes impossible for any key
personnel employed by the CONSULTANT in PROJECT WORK or for any corporate officer of
the CONSULTANT to render his services to the PROJECT, the CONSULTANT shall not be
relieved of its obligations to complete performance under this Agreement without the concurrence
and written approval of CITY. If CITY agrees to termination of this Agreement under this
provision, payment shall be made as set forth in subparagraph 15.3 of this Section.
SECTION 16 DISPUTE RESOLUTION
16.1 In the event that any dispute shall arise as to the interpretation of this agreement, or in the event of
a notice of default as to whether such default does constitute a breach of the contract, and if the
parties hereto cannot mutually settle such differences, then the parties shall first pursue mediation
as a means to resolve the dispute. If the afore mentioned methods are either not successful then
any dispute relating to this Agreement shall be decided in the courts of Yakima County, in
accordance with the laws of Washington. If both parties consent in writing, other available means
of dispute resolution may be implemented.
SECTION 17 NOTICE
17.1 Any notice required to be given under the terms of this Agreement shall be directed to the party at
the address set forth below. Notice shall be considered issued and effective upon receipt thereof
by the addressee -party, or seventy-two (72) hours after mailing by certified mail to the place of
business set forth below, whichever is earlier.
CITY:
City of Yakima
Tony O'Rourke, City Manager
129 North 2nd Street
Yakima, WA 98901
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CONSULTANT: John D. Gordon, MAI
Kidder Mathews
500 108th Avenue NE
Bellevue, WA 98004
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their
respective authorized officers or representatives as of the day and year first above written.
CITY OF YAKIMA Kidder Mathews
Tony O'Rourke Signature
Printed Name: Printed Name:
Title: City Manager Title:
Date: Date:
Attest
City Clerk
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Task 1
EXHIBIT A
SCOPE OF SERVICES
Determine and evaluate the Yakima Convention Center market.
We first will evaluate the supply of comparable convention facilities and
the historical volume of meeting demand. This will establish a baseline
for our subsequent analysis of the proposed expansion.
There are two components to the competitive supply: freestanding
convention and event centers, and meeting facilities housed within full
service hotels. We will conduct a statewide survey of convention centers
and convention hotels, compiling data on location, age, configuration,
and capacity. This will establish the volume of space available for
meetings and events in the primary urban markets.
Demand will be estimated for each market based on the number of
events, the number of delegate days, the number of occupied nights, and
the volume of convention center revenue. This data will be used to
evaluate the historical position of Yakima within the regional convention
market.
Task 2 Estimate the market share obtainable by an expanded facility.
For this task, we will project regional convention demand through a
forecast period of at least five years. We then will use penetration
analysis to estimate the volume of demand that could be captured in the
Yakima market with and without an expansion.
Task 3 Review facility space requirements to ensure that they match
potential markets.
For this task, we will first compare the configuration and capacity of
convention facilities in Yakima (as proposed) to those of the comparable
markets. We will then draw a comparison of demand by event type,
average delegate count, seasonality, and source market.
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Task 4 Identify tradeoff of space versus revenue, if facility is not built to
match market potential.
This task requires a sensitivity analysis. Based on our research and on
the expectations of city officials and convention center management, we
will consider several development options. For each option, we will
estimate the annual volume of convention center revenue through the
forecast period.
Task 5 Determine potential growth of hotel/motel tax for the next five years.
For this task, we will first evaluate the historical relationship of lodging tax
receipts to convention volume. Based on our forecast of convention
revenue and delegate days, we will estimate the potential lodging
revenue and tax receipts. We will then adjust this forecast to account for
projected changes in the Yakima lodging supply.
Task 6 Project operating revenue for the first five years.
Our forecast of revenue for the expanded convention center will be based
on the historical revenue per event and per delegate, adjusted for
trending and for projected changes in the mix and size of events. This
analysis will consider rental income, catering and other service income,
and the potential for lease income.
Task 7 Project operating expenses for the first five years.
Report
Expenses will be projected based on the historical expenses and
projected changes in revenue. Expenses will be segregated between
variable components (those items that are directly related to revenue
and/or volume) and fixed components (those that are not).
The results of our analysis will be presented in a self-contained narrative
report. This report will include explanatory text and tables detailing our
analysis of market supply, market demand, and historical and projected
performance. The Addendum to the report will include site and building
plans and other exhibits, as available.
The estimated duration of the assignment is six to eight weeks from the
date of authorization.
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EXHIBIT B
Professional Fees and Rates
Total fee: $16,000
Expenses: Included
Rates: John D. Gordon, MAI $275/hour
Vice President
Jesse L. Baker $125/hour
Associate
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Agreement for Consulting Services with Kidder Mathews of Bellevue, WA
Purpose of consulting services: Conditions in the meeting and convention market for
Yakima and Washington state have changed in the past five to ten years as new
facilities have come online in competing markets and as a result of the recent economic
downturn. The City, Public Facilities District and Yakima Convention Center
administration wishes to conduct a professional study to accurately evaluate current and
future meeting and convention market trends, hotel demand and related conditions.
Summary of the contract and contractor's qualifications: This contract is to enter in
an agreement with Kidder Mathews of Bellevue to conduct a market survey of the
meetings market industry. As outlined in the scope of work there are seven tasks to the
contract:
1. Determine and evaluate the Yakima Convention Center market.
2. Estimate the market share obtainable by an expanded facility.
3. Review facility space requirements to ensure that they match potential markets.
4. Identify tradeoff of space versus revenue, if facility is not built to match market
potential.
5. Determine potential growth of hotel/motel tax for the next five years.
6. Project operating revenue for the first five years.
7. Project operating expenses for the first five years.
The firm Kidder Mathews has extensive expertise in real estate assessments and
analysis. John Gordon, the principal staff member involved with this project, specializes
in the lodging, meetings and hospitality industry. Mr. Gordon previously conducted a
similar analysis for the City in 2008 and is familiar with the local market, Yakima
Convention Center and the meeting facilities in Washington state.
Total cost of professional services contract: $16,000 inclusive for the scope of work
outlined. Project is budgeted in the 2015 Convention Center Capital Budget.
Length of project: Contractor states that upon execution of the contract the work
should take six to eight weeks.
End results and benefit for the City: Contractor will prepare a report that provides a
professional analysis of market supply, market demand and historical and projected
performance that will allow the City and center staff to determine the most efficient and
effective direction to obtain optimal operation and success of the Yakima Convention
Center.