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HomeMy WebLinkAboutContract 26301 NNfiSRETAR ACREy G 1 CONSULTANT AGREEMENT THIS CONSULTANT AGREEMENT (this "Agreement") made this, the MA day of October 2000, by and between C.H. Johnson Consulting (hereinafter referred to as the "Consultant") and the City of Fort Worth, Texas, a home-rule municipal corporation of the State of Texas, located within Tarrant and Denton Counties (hereinafter referred to as the "City"). The Consultant and the City hereinafter are sometimes referred to individually as a "Party" and collectively, as"Parties". In consideration of the following premises and the mutual consents and undertakings herein, each Party agrees as follows: 1. Scope of Services Subject to the terms and conditions of this Agreement, the City hereby engages the Consultant and the Consultant hereby agrees to perform on behalf of the City the services described in "Appendix A" entitled "Scope of Services," which is attached hereto and made part of this Agreement. The Parties agree and understand that the Consultant will perform the scope of services in two separate phases described in "Appendix A" as Phases I and II. Commencement of the listed services in each Phase may begin only after approval by the Fort Worth City Council for that particular phase. If the City Council fails to approve either phase of services listed in "Appendix A," this Agreement may be terminated immediately at the option of the City. 2. Term of Agreement The term of this engagement shall be for a defined period, which shall be set forth in"Appendix A" which is attached hereto and made a part of this Agreement. 3. Compensation In consideration of the performance by the Consultant or the Consultant's duties and obligations under this Agreement and subject to the terms and conditions set forth in this Agreement, the City agrees to compensate the Consultant as provided in "Appendix A", which is attached hereto and made a part of this Agreement. The Consultant will be compensated for the services rendered in each phase as indicated in "Appendix A" and contingent upon prior City Council approval for each phase. 4. Termination (a) The City may terminate this Agreement at any time, either for the City's convenience or because of the failure of the Consultant to fulfill its obligations hereunto, by written notice to the Consultant. Upon receipt of such notice Consultant shall I(C bill if cm ��Efi ItDIS QD age 1 V' 't (i) Immediately discontinue all services affected unless, the notice directs otherwise, and (ii) Upon written request of the City, deliver to the City, at no charge to the City, all data, reports, drawings, estimates, summaries, and such other information and materials as may have been accumulated by the Consultant in performing its obligations under this Agreement, whether completed or in process. If the termination is for the convenience of the City, the Consultant shall be paid compensation for services performed to the date of termination. (b) If the termination is due to the failure of the Consultant to fulfill its obligation under this Agreement, the City may take over the work and pursue the same to completion. The Consultant shall not be liable for any additional costs occasioned by the failure of the Consultant to fulfill its obligations if failure to perform arises out of causes beyond its reasonable control. Such causes may include, but are not limited to, acts of nature or of the public enemy, acts of the City in either its sovereign or contractual capacity, fire,floods, epidemics, quarantine restrictions, strikes,unusually severe weather. In every case, the failure of the Consultant to perform must be beyond the reasonable control of the Consultant. (c) If, after notice of termination for failure to fulfill its obligations, it is determined that Consultant had not so failed, the termination shall be deemed to be effected for the convenience of the City. 5. Quality Assurance (a) The findings and recommendations of the Consultant's research will reflect analyses of primary and secondary sources of information. Estimates and analyses presented in the Consultant's report will be based on economic trends, market assumptions, and financial data that are subject to variation. The Consultant will use sources that the Consultant deems reliable, but will not guarantee their accuracy. Recommendations will be made from information developed by the consulting team, provided by analyses,internal databases, and from information provided by the City. (b) The Consultant will have no responsibility to update its report unless requested by the City for events and circumstances occurring after the date of its report. If substantial events transpire after issuance of the report, consultant will be paid reasonable costs to prepare such updates. (c) The consultant shall carry the following insurance coverage: ■ Commercial General Liability with a combined limit of not less than $1,000,000 per occurrence. Such policy shall be endorsed to name the City as an additional insured. q I 'JU'� Aran R 17Ur�t ? 2 ■ Automobile Liability Insurance with a combined limit of not less that $1,000 000 per occurrence. Such policy shall be endorsed to name the City as an additional insured. ■ Statutory Workers' Compensation and Employers' Liability Insurance with the Alternate Employer Endorsement WC 000301. Such policy shall be endorsed to name the City as an additional insured. ■ Any other insurance as required by City. Any such policy shall be endorsed to name the City as an additional insured. 6. Applicable Law This agreement is entered into subject to the provisions of all applicable federal, state and local laws or ordinances and the requirement of all governmental regulatory agencies having jurisdiction over the subject matter and venue shall be in Fort Worth, Tarrant County,Texas or the Federal Court of the Northern District. 7. Indemnification The Consultant shall indemnify, defend and hold harmless the City, its officers, servants, employees, and agents from any and all suits, claims, or causes of action for any property loss, damage or cost, and/or personal injury, including death, to any of the Consultant's employees or agents or to any third persons, including the officers, servants, employees and agents of the City, arising directly or indirectly out of, or in the course of, performance of the services under this Agreement unless caused by the sole willful misconduct or gross negligence of the City. Consultant agrees to notify the City promptly upon the receipt of any claim or lawsuit brought in connection with any injury, death or damages related to this Agreement. Consultant agrees to make its officers, agents, employees available to the City at all reasonable times for the defense of any claims or litigation for which the City may be responsible hereunder. Nothing herein shall be deemed to constitute a waiver of any immunity or affirmative defense, which may be asserted by the City as to any claim of any third party or create a cause of action for the benefit to any person not a party to this Agreement Nothing herein shall be deemed to constitute or to create any rights for the benefit of any person not a party to this Agreement not otherwise existing at law. UNRCN °1 k"H/J VD CDS MCU'P °PY 3 8. Notices Any and all notices required in connection with this Agreement shall be deemed adequately given only in writing and (a) personally delivered, or sent by first class, registered or certified mail, postage prepaid, return receipt requested, or by recognized overnight courier, (b) sent by facsimile, provided a hard copy is mailed on that date to the party for whom such notices are intended, or sent by other means at least as fast and reliable as first class mail. A written notice shall be deemed to have been given to the recipient party on the earlier of (a) the date it shall be delivered to the address required by this Agreement; or (b) the date deliver shall have been refused at the address required by this Agreement; (c) with respect to notices sent by mail or overnight courier, the date as of which the Postal Service or overnight courier, as the case may be, shall have indicated such notice to be undeliverable at the address required by this Agreement; or (d) with respect to a facsimile, the date on which the facsimile is sent and receipt of which is confirmed. Any and all notices referred to in this Agreement, or which either party desires to give to the other, shall be addressed as follows: To the Consultant: Charles Johnson C. H. Johnson Consulting 36 South Wabash Ave,Suite 602 Chicago, IL 60603 Telephone: 312-444-1031 Fax: 312-444-1125 For the City: Kirk Slaughter, Public Events Director City of Fort Worth 1111 Houston Street Fort Worth,Texas 76102 9. Construction (a) This Agreement shall be the entire, full and complete agreement between the Parties concerning the subject matter hereof and shall supersede all prior agreements. There are no valid or binding representations, inducements, promises or agreements, oral or other wise, between the Parties that are not embodied herein. No amendment, change, or variance of or from this Agreement shall be binding on either Party unless agreed to in writing signed by both of the Parties. (b) The headings appearing at the beginning of each paragraph of this Agreement are for convenience only and do not define, limit or construe the contents of any such paragraph. Whether expressly indicated or not, the singular usage includes the plural, and the neuter usage includes the masculine or the feminine or both the masculine and the feminine. This Agreement may be executed in counterparts, each of which so executed shall be deemed an original and such counterparts together shall constitute the same agreement. G Me4 10. Waiver The City and the Consultant may waive an obligation of or restriction upon the other under this Agreement only in writing. No failure, refusal, neglect, delay, forbearance or omission of the City or the Consultant to exercise any right or remedy under this Agreement or to insist upon full compliance by the other with his, her or its obligation hereunder shall constitute a waiver of any provisions(s) of the Agreement. 11. Severability Each provision of this Agreement or part thereof shall be severable. If, for any reason, any provision or part thereof in this Agreement is finally determined to be invalid and contrary to, or in conflict with, any existing or future law or regulation, such determination shall not impair the operation or affect the remaining provisions of this Agreement, and such remaining provisions will continue to be given full force and effect and bind each Party. Each invalid provision or part thereof shall be deemed not to be a part of this Agreement. 12. Assignability The Consultant may not assign its rights or obligations without the prior consent of the City,which consent may be withheld in the City's sole and absolute discretion. 13. Parties Bound This Agreement shall be binding upon the successors and assigns of both parties in like manner as upon the original parties. Accepted by: C. H.Johnson Consulting, (the "Consultant") By: Its Date: City of Fort Wor e " ity" By: Its av Date: C7C',TD ER 151 Z-nob U lma� �p�ypq�WMICMy Approved as to form and legality: David Yett,City Attorney By Assistant ity Attorney ATTESTED BY (� /c, ContraCt Authorization Date �,VIYJUJVINI VEX. Page 6 C .H. JOHNSON CONSULTING, INC. Appendix "A" EXPERTS IN CONVENTION,SPORT AND REAL ESTATE CONSULTING Scope of Services UNDERSTANDING OF THE ASSIGNMENT It is the City's intent to support its convention center development via the attraction of a headquarters hotel. A phased scope of services to assist in evaluating and obtaining a hotel will be used. The phases of work are: Phase 1 A. Determine feasibility of a convention center headquarters hotel (update of 1996 hotel feasibility study) B. 1. Analyze potential locations for a hotel development. As part of the site evaluation, objectively investigate the existing nearby properties for expansion/renovation opportunities as a convention center headquarters hotel. 2. Analyze the T&P Terminal development and its relationship and impact to the convention center hotel C. Assist in developing a business plan for a hotel development, including financing options Phase 2 A. Prepare and implement a Request for Qualifications for hotel developers B. Negotiate with potential hotel developers SCOPE OF WORK Johnson Consulting will perform the following work. Johnson Consulting will add or delete work as determined by the City and its advisors to reflect roles that are being performed by other team members that may participate now or at a later date. PHASE 1 A. HOTEL FEASIBILITY ANALYSIS The hotel analysis will identify the current and anticipated operating environment for hotel additions in Ft. Worth. The analysis will assume that the proposed hotel will serve as the headquarters hotel. Johnson Consulting proposes to perform the convention center hotel analysis as follows. J�I- � Or4� o r ?Al cEP' °?RQQly Scope of Services Page 2 Headquarters Hotel Strategy and Implementation Assistance Methodology for Hotel Feasibility Analysis ■ Review and use, to the maximum extent possible, information from prior hotel studies and research reports performed in the market. ■ Meet with representatives of the Ft. Worth Convention and Visitors Bureau and local hotel property managers. ■ Develop a comprehensive list of all hotel projects currently under consideration and indicate the status of those projects using published reports, developer contacts, and other available sources of information. ■ Review headquarters and total hotel supply situations for Ft. Worth's competitors and map their competitive hotel offerings and plans for future hotel developments. ■ Analyze historical trends in the hotel market including the number of rooms, occupancy rates,and ADRs. ■ Identify a set of competitive facilities in the market and analyze occupancy, ADR's, and REVPAR for this competitive set. ■ Analyze the seasonality of demand for the competitive set. ■ Analyze demand by market segment and specifically assess the impact of group demand from the convention center. ■ Perform a market penetration analysis for the proposed hotel and estimate future room-night demand,occupancy, and ADR. ■ Obtain market and financial data from City and CVB records, Smith Travel Research, and Source Strategies on a competitive set of hotel properties. ■ Perform a sensitivity analysis on the effect of adding the T&P Terminal conversion to the competitive set of hotels and discuss its impact on the demand penetration of the additional convention center hotel. ■ Review site options and discuss their compatibility for hotel development, appropriateness for a headquarters hotel, and comparison to competitor headquarters hotels in regional markets. As appropriate, we will work with City staff to rank site options. ■ Based on a supply and demand analysis that reflects market growth and room supply additions, discuss phasing issues and options, with and without the T&P conversion. ■ Develop a pro forma operating statement for the first ten years of operation based on demand projections and a ratio analysis of revenue and expenses. ■ Based on the projected net operating income of the property for the first ten years of operation and an assumed capitalization rate after ten years of operation,estimate the net present value of the property. ■ Work with a contractor who is familiar with hotel development and local market conditions to develop reasonable assumptions regarding the construction cost of the proposed hotel. Summarize the capital costs of the facilities (exclusive of land costs) using the per room development costs of comparable hotel developments and contractor support. �, a Scope of Services Page 3 Headquarters Hotel Strategy and Implementation Assistance ■ Work with client representatives and the City's financial advisor to summarize project development costs and develop a debt service schedule for a hypothetical hotel and define loan or bond coverage requirement assumptions. Deliverable Products ■ Projections of future hotel market growth. ■ Site options analysis. ■ Discussion on the impacts of the T&P conversion. ■ A pro forma operating statement for the convention center hotel. ■ A report that documents the market and feasibility study analysis of the operations of a proposed convention center hotel, setting the stage for the business-planning phase of work. ■ Presentation of and workshops regarding the results to client representatives. City of Fort Worth Responsibilities ■ Through various parties, provide prior reports, information on market occupancy, ADR, room supply, and potential new hotel projects. ■ Respond to additional requests for information made by consultants, especially pertaining to room tax collection information, hotel tax information, and other publicly available data. ■ Information on potential site options by City planning staff. ■ Review and comment on draft materials in a timely manner. B. BUSINESS PLAN DEVELOPMENT At the completion of the above analysis, the City will be in a position to make baseline policy decisions about sites, phasing, willingness, and commitment to address funding gaps, with specific sources of revenue and reflect on the impact of the T&P conversion and its role in the overall equation. It will be Johnson Consulting's and other City advisors' role to work with the City on this decision-making and policy development process. The work will involve the following: ■ Review of Johnson Consulting's report, discussing the market and financial situation in Ft. Worth in comparison to other markets. ■ Impact of the headquarters hotel on other downtown hotels in the short- and long-term. Scope of Services Page 4 Headquarters Hotel Strategy and Implementation Assistance ■ Discussion of the funding gap and convention center pros and cons, under a"full build" and phased approach,with and without the T&P conversion. ■ Site options. ■ Gap funding options. ■ Use of 6320 financing and issues pertaining to City ownership. ■ Other, as appropriate. In the experience of Johnson Consultant, it has been shown that working through the above issues takes several iterations and is often performed in conjunction with staff and a committee of some form. After the City staff and the committee work through the issues with the consulting team, a consensus recommendation will be developed and worked through City Council. Once the consensus development process is completed, Johnson Consulting will develop its draft business plan which will serve as the guideline document setting the City's expectations in the hotel developer solicitations. FEES FOR PHASE I Johnson Consulting will bill for services on a time and materials basis, not a task basis. The Phase I contract amount will be $77,800 in fees and approximately $11,670 in expenses,for a total not to exceed $89,470 for Phase I. PHASE 2 A. REQUEST FOR QUALIFICATIONS DEVELOPMENT AND SOLICITATION Johnson Consulting will update its hotel developer and chain mailing lists and request for qualifications (RFQ) document. If deemed necessary, a request for proposal documents (RFP) will also be developed. Upon completion of this workshop, Johnson Consulting will issue a final draft report, in anticipation of a final review and update, near the issuance of the preliminary offering statement. We will also assist, as necessary, in the development of the project. Johnson Consulting will also develop an advertising schedule for the solicitation and will develop a project Website to assist in the dissemination of the RFQ, addenda, and City of Ft. Worth and project-related materials. Johnson Consulting will then work with the City to conduct a solicitation process, envisioned as follows: ■ Disseminate RFQ. ■ Obtain and analyze responses. W Scope of Services Page 5 Headquarters Hotel Strategy and Implementation Assistance ■ Review analyzed responses with City. ■ Short-list and rank on RFQ response. ■ Commence negotiations, or proceed to RFP, eliciting more detail on project specifics and deal terms. Deliverable Products ■ Draft RFQ & RFP materials. ■ Mailing list. ■ Web materials. ■ Solicitation schedule. ■ Participate in RFQ response review. ■ Draft RFQ responses report. Client Responsibilities ■ Review draft RFQ and RFP materials. ■ Review existing Web resources and determine the best site development strategy. ■ RFQ response review. ■ Determine if a second-stage RFP is required, or if sufficient basis exists to rank responses and proceed with negotiations. B. NEGOTIATE WITH POTENTIAL HOTEL DEVELOPERS ■ Upon approval of a ranking of developers, City representatives, supported by legal, financial advisors, and consulting team members, would proceed to negotiate development and operating agreements with the top-ranked development team. If negotiations with the top-ranked development team fail, the City would have the option to begin negotiations with the second- ranked team. The negotiations would culminate in a set of agreements to be submitted to the City Council for their approval. ■ Subsequently, the City Council would approve such agreements and implement the project according to the methods and procedures contained in the agreements. ■ If a 6320 financing approach is used, an additional body of work will be required by bond counsel and the City's financial advisor. Johnson Consulting will have a support role in this work. EC 19 d �Y Scope of Services Page 6 Headquarters Hotel Strategy and Implementation Assistance FEES FOR PHASE 2 Johnson Consulting will bill for services on a time and materials basis, not a task basis. The Phase II contract amount will be $25,000 for the RFQ & RFP Development and Solicitation and Shortlisting plus expenses estimated at$19,406; the Negotiations Support is estimated at $80,000 for a total estimated cost of $124,406 for Phase 11. PROJECT FEES The anticipated fees for Phase 1 and Phase 2 of this assignment are listed below. Phases I and II will be paid separately as indicated above and based on prior City Council approval. Due to the variability in the role for the consultant, Johnson Consulting will bill for services on a time and materials basis, not a task basis. Tasks 1-5 are definable, hence a subtotal is provided for those services. Negotiations support is estimated on the monthly average of billings to the City of Overland Park for their hotel project. Headquarters Hotel Solicitation Services Ft.Worth,Texas TASK TOTAL 1 Contracting and Kick Off Meetings $5,800 2 Hotel Feasibility Study 40,000 3 Business Plan Development 32,000 4 RFQ&RFP Development 5,000 5 Solicitation&Shortlisting 20,000 Subtotal 102,800 6 Negotiations Support @$20,0001 month"4 months 80,000 Estimated Fees $182,800 Out of Pocket Expenses $31,076 Estimated Contract Total $213,876 Out-of-pocket expenses will be billed at 1.1 times cost in addition to fees. These expenses include clerical and administrative services such as word processing, report reproduction, administrative overhead, telephone, and messenger service, postage, and travel and lodging. Progress bills will be submitted at monthly intervals during the engagement. RIO Scope of Services Page 7 Headquarters Hotel Strategy and Implementation Assistance Additional Services The billing rate schedule is provided below: President $230 Senior Vice President $210 Staff $90-$150 Support $J5 Additional services not included in the above scope of work will be billed at the above rates. TIMING The following table outlines the anticipated schedule for the work program. WORK PROGRAM AND PROJECT TIMING Ft.Worth Headquarters Hotel Solicitation Month WORK TASK 09116.30100 1011100 I 11/1100 1 1211100 1 111101 1 2/1101 1 3!1101 1 411/01 1 511101 I 6/7101 1 755-11 9vol r 911101 1 Sign Contract 6 Commence Services M 2 Hotel Feasibility Study M M M 3 Business Plan Development M M M M 4 RFO 6 RFP Development M•Mine•in abor• 6 Solicitation b Shortlisting M M M 6 Commence Negotiations Meeting schedule tbd 7 Contingency(if RFP Is needed,etc.) 8 Tentative Agreement Reached M=meeting CONTRACTUAL CONDITIONS It is understood that the findings of Johnson Consulting regarding the proposed hotel will only be one of several inputs to the process of designing the subject facilities.Sole reliance on the input of Johnson Consulting is not expected. Johnson Consulting must review draft prospectus and lender submittals before their issuance to ensure the information is being reflected accurately. IE required to attend meetings and make presentations beyond the scope of services, Johnson Consulting will charge separately for its actual hours of professional time incurred in preparing for and attending th gs-.-. - �0 c: °� '�f: D t Scope of Services Page 8 Headquarters Hotel Strategy and Implementation Assistance Professional time will be billed at Johnson Consulting's standard hourly rates plus travel and incidental expenses. Billing rates are subject to a minimum five percent increase as of January 1, 2001. AUTHORIZA 1 N TO PROCEED FOR PHASE 1 Accepted By: l Signature: V Z? Contract Authorization L ( & - �3- 1C) Title: _ 5�� T � , /�j�C{C�. Date Date: AUTHORIZATION TO PROCEED FOR PHASE 2 Ll� Accepted By: M .�.w,Lr.. le / -,mt:ract Authorization Signature: ASS i STAMT 61.11 A`QnQ��. Date Title: 11 /�'l Date: II^•'Ii LT� C��'�IMR��� �A Q .� ;, � . , a :d�f 'i7.4� 3 _ ,�li �.}P^_ Thr, � � �� ` e � ;, _ -} ,i � x k' .. .. � _ y a, �e F 3 �1� I �. k � G City of Fort Worth, Texas qVIAvor and Council Communication DATE REFERENCE NUMBERLOG NAME PAGE 2/6/01 C-18450 25RFQ 1 of 2 SUBJECT AUTHORIZATION TO PROCEED WITH PHASE II FOR PREPARATION AND IMPLEMENTATION OF THE QUALIFICATIONS/PROPOSALS FOR HOTEL DEVELOPERS AND NEGOTIATIONS WITH HOTEL DEVELOPERS FOR A HEADQUARTERS HOTEL C. H. JOHNSON CONSULTING, INC. RECOMMENDATION: It is recommended that the City Council authorize the City Manager to proceed with Phase 11 of the agreement with C. H. Johnson Consulting, Inc. (City Secretary Contract No. 26301) to implement the qualifications/proposals for hotel developers for a proposed convention center headquarters hotel in downtown Fort Worth, and negotiate development and operating agreements with hotel developers. DISCUSSION: In 1996, a feasibility study conducted by the Fort Worth Convention & Visitor's Bureau identified the need for an expanded convention center and a convention center headquarters hotel to support an expanded facility. A headquarters hotel, along with the expanded and renovated convention center, would attract larger conventions that would positively impact the economy of the community. Subsequent to the study, the convention center and all assets were acquired by the City of Fort Worth from Tarrant County. In the 1998 Capital Improvement Program, voters approved $19 million for the initial phases of expansion and modernization of the convention center facility. During the design phase of the convention center expansion, focus group discussions were held. Meeting planners expressed a strong need for a headquarters hotel and several developers indicated interest in the development. As the convention center design progressed, the issues related to the hotel development were deferred until firm decisions were made regarding the scope of the phases of the convention center expansion. The City Council has concurred with the phasing and funding sources that have been identified for the first $70 million expansion project. On October 17, 2000 (M&C C-18310), the City Council authorized an agreement with C. H. Johnson Consulting, Inc. to provide a market and financial analysis (Phase 1) for a headquarters hotel. The findings of the analysis were presented at a City Council work session on January 30, 2001. The City Council moved to proceed with the development of a convention center headquarters hotel. City of Fort Worth, Texas 4velyor and vun"R Communication DATE REFERENCE NUMBER LOG NAME PAGE 2/6/01 C-18450 25RFQ 2 of 2 SUBJECT AUTHORIZATION TO PROCEED WITH PHASE II FOR PREPARATION AND IMPLEMENTATION OF THE QUALIFICATIONS/PROPOSALS FOR HOTEL DEVELOPERS AND NEGOTIATIONS WITH HOTEL DEVELOPERS FOR A HEADQUARTERS HOTEL C. H. ,JOHNSON CONSULTING, INC. The proposed scope of services for Phase II is: a) Request for Qualifications/Proposals and Solicitation • Identify potential hotel developers; • Develop an advertising schedule for the solicitation; • Develop a project Website to assist in the dissemination of the RFQ, addenda, and City of Fort Worth project-related materials; • Disseminate RFQ; • Obtain and analyze responses; • Draft RFQ responses report; • Review analyzed responses with the City; • Short-list and rank RFQ response; • Commence negotiations, or proceed to RFP, eliciting more detail on project specifics and deal terms. b) Negotiate with Potential Hotel Developers • Assist City representatives, supported by legal and financial advisors, to negotiate development and operating agreements with top-ranked development team. Consulting service charges for Phase II will be on a time-and-materials basis and are estimated not to exceed $105,000 in fees and approximately$19,406 in expenses, for a total not to exceed $124,406 for Phase II. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that no funds were budgeted for this purpose, however, the department has realized savings in other accounts that will offset this expenditure. MG:k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) Mike Groomer 6140 APPROVED Originating Department Head: CITY COUNCII- Kirk Slaughter 8151 (from) FEB 6 S011 GG01 539120 0252000 $124,406.00 Additional Information Contact: F, ""'`J City stay of the Kirk Slaughter 8151 city of Fort Worth,"LO'- Ciit , of Fort Worth, Texas 4velvar AndC ouncii Communication DATE REFERENCE NUMBER LOG NAME PAGE 10/17/00 C-18310 25HOTEL 1 of 2 SUBJECT AUTHORIZE CONTRACT WITH P. H. JOHNSON CONSULTING, INC. TO PROVIDE A MARKET AND FINANCIAL ANALYSIS FOR HEADQUARTERS HOTEL RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a consulting services agreement with C.H. Johnson Consulting, Inc. for an amount not to exceed $89,470, to provide a market and financial business plan analysis, as described in the attached Phase I, Scope of Services, Appendix A, for a proposed convention center headquarters hotel in downtown Fort Worth. DISCUSSION: In 1996, a feasibility study conducted by the Fort Worth Convention and Visitor's Bureau identified the need for an expanded convention center, and also a convention center headquarters hotel to support an expanded facility. A headquarters hotel, along with the expanded and renovated convention center would attract larger conventions that would positively impact the economy of the community. Subsequent to the study, the Convention Center and all its assets were acquired by the City of Fort Worth from Tarrant County. In the 1998 Capital Improvement Program, voters approved $19 million for the initial phases of expansion and modernization of the Convention Center facility. During the design phase of the convention center expansion, focus group discussions were held with meeting planners and members of the hospitality industry to receive input on the expansion, including a Convention Center headquarters hotel. A specific focus group of hotel developers were invited to tour and discuss their input on the development of a headquarters hotel. Meeting planners expressed a strong need for a headquarters hotel, and several developers indicated interest in the development. As the Convention Center design progressed, the issues related to the hotel development were deferred until firm decisions were made regarding the-scope of the phases of the Convention Center expansion. The City Council has concurred with the phasing and funding sources identified for the first $70 million expansion project. Requests for Quotations were received from five consulting firms in July 2000, in order to identify a consultant for the hotel development component of the project. On September 1, 2000, the Steering Committee for the expansion of the Convention Center interviewed three consultants, and based on these interviews agreed to recommend to the City Council a contract with C. H. Johnson Consulting, Inc. City staff has completed a proposed professional services agreement with C. H. Johnson, Inc., a copy of which is attached. .1'A City of Fort Worth, Texas 4bayor and Councit Communication DATE REFERENCE NUMBER 7LOG NAME I PAGE 10/17/00 C-18310 25HOTEL 2 of 2 SUBJECT AUTHORIZE CONTRACT WITH C. H. JOHNSON CONSULTING, INC. TO PROVIDE A MARKET AND FINANCIAL ANALYSIS FOR HEADQUARTERS HOTEL The proposed scope of services is as follows: Phase 1 • Update the assumptions utilized for the 1996 study based on the design and construction commitments of the Convention Center; and • Analyze all potential locations for a hotel development, including existing properties for expansion/renovation opportunities; and • Analyze the proposed T&P Terminal development and its relationship to and impact on the convention center hotel; and • Assist in developing a business plan for a hotel development, including financing options. Consulting service charges for Phase I will be on a time and materials basis, and are estimated to be approximately $77,800 in fees and approximately $11,670 in expenses, for a total not to exceed $89,470 for Phase I. Phase 2, as outlined in the Scope of Services (attached), would be subject to City Council approval and allocation of funds at the appropriate time. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds for Phase I of the project will come from the Public Events Facilities Fund maintained by the Fort Worth Convention and Visitor's Bureau. MG:j Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) Mike Groomer 6140 APPROVED���� ������� Originating Department Head: Kirk Slaughter 8151 (from) OCT 17 2000 Additional Information Contact: �&-yu-,, City Sambkry of the Kirk Slaughter 8151 City of Fort Wordy Teras City of Fort Worth, Texas "611for and council 4:01"nsunication DATE REFERENCE NUMBER LOG NAME PAGE 2/6/01 C-18450 25RFQ 1 of 2 SUBJECT AUTHORIZATION TO PROCEED WITH PHASE II FOR PREPARATION AND IMPLEMENTATION OF THE QUALIFICATIONS/PROPOSALS FOR HOTEL DEVELOPERS AND NEGOTIATIONS WITH HOTEL DEVELOPERS FOR A HEADQUARTERS HOTEL C. H. JOHNSON CONSULTING, INC. RECOMMENDATION: It is recommended that the City Council authorize the City Manager to proceed with Phase II of the agreement with C. H. Johnson Consulting, Inc. (City Secretary Contract No. 26301) to implement the qualification s/proposa Is for hotel developers for a proposed convention center headquarters hotel in downtown Fort Worth, and negotiate development and operating agreements with hotel developers. DISCUSSION: In 1996, a feasibility study conducted by the Fort Worth Convention & Visitor's Bureau identified the need for an expanded convention center and a convention center headquarters hotel to support an expanded facility. A headquarters hotel, along with the expanded and renovated convention center, would attract larger conventions that would positively impact the economy of the community. Subsequent to the study, the convention center and all assets were acquired by the City of Fort Worth from Tarrant County. In the 1998 Capital Improvement Program, voters approved $19 million for the initial phases of expansion and modernization of the convention center facility. During the design phase of the convention center expansion, focus group discussions were held. Meeting planners expressed a strong need for a headquarters hotel and several developers indicated interest in the development. As the convention center design progressed, the issues related to the hotel development were deferred until firm decisions were made regarding the scope of the phases of the convention center expansion. The City Council has concurred with the phasing and funding sources that have been identified for the first $70 million expansion project. On October 17, 2000 (M&C C-18310), the City Council authorized an agreement with C. H. Johnson Consulting, Inc. to provide a market and financial analysis (Phase 1) for a headquarters hotel. The findings of the analysis were presented at a City Council work session on January 30, 2001. The City Council moved to proceed with the development of a convention center headquarters hotel. City of Fort Worth, Texas Imayar andc:vuneff lZommuniesition DATE REFERENCE NUMBERLOG NAME TAGE2/6/01 C-18450 25RF2 of 2 SUBJECT AUTHORIZATION TO PROCEED WITH PHASE II FOR PREPARATION AND IMPLEMENTATION OF THE QUALIFICATIONS/PROPOSALS FOR HOTEL DEVELOPERS AND NEGOTIATIONS WITH HOTEL DEVELOPERS FOR A HEADQUARTERS HOTEL C. H. JOHNSON CONSULTING, INC. i The proposed scope of services for Phase II is: a) Request for Qualifications/Proposals and Solicitation • Identify potential hotel developers; • Develop an advertising schedule for the solicitation; • Develop a project Website to assist in the dissemination of the RFQ, addenda, and City of Fort Worth project-related materials; • Disseminate RFQ; • Obtain and analyze responses; • Draft RFQ responses report; • Review analyzed responses with the City; • Short-list and rank RFQ response; • Commence negotiations, or proceed to RFP, eliciting more detail on project specifics and deal terms. b) Negotiate with Potential Hotel Developers • Assist City representatives, supported by legal and financial advisors, to negotiate development and operating agreements with top-ranked development team. Consulting service charges for Phase II will be on a time-and-materials basis and are estimated not to exceed $105,000 in fees and approximately $19,406 in expenses, for a total not to exceed $124,406 for Phase ll. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that no funds were budgeted for this purpose, however, the department has realized savings in other accounts that will offset this expenditure. MG:k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) Mike Groomer 6140 APPROVED Originating Department Head: CITY COUNCIL Kirk Slaughter 8151 (from) FEB 6 2001 GG01 539120 0252000 $124,406.00 Additional Information Contact: city secretary of the Kirk Slaughter 8151 city of Fort Worth,'wry City of Fort Worth, Texas 4vagor and coun"R Communication DATE REFERENCE NUMBER LOG NAME PAGE 10/17/00 C-18310 25HOTEL 1 of 2 SUBJECT AUTHORIZE CONTRACT WITH C. H. JOHNSON CONSULTING, INC. TO PROVIDE A MARKET AND FINANCIAL ANALYSIS FOR HEADQUARTERS HOTEL RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a consulting services 4 agreement with C.H. Johnson Consulting, Inc. for an amount not to exceed $89,470, to provide a market and financial business plan analysis, as described in the attached Phase I, Scope of Services, Appendix A, for a proposed convention center headquarters hotel in downtown Fort Worth. DISCUSSION: In 1996, a feasibility study conducted by the Fort Worth Convention and Visitor's Bureau identified the need for an expanded convention center, and also a convention center headquarters hotel to support an expanded facility. A headquarters hotel, along with the expanded and renovated convention center would attract larger conventions that would positively impact the economy of the community. Subsequent to the study, the Convention Center and all its assets were acquired by the City of Fort Worth from Tarrant County. In the 1998 Capital Improvement Program, voters approved $19 million for the initial phases of expansion and modernization of the Convention Center facility. During the design phase of the convention center expansion, focus group discussions were held with meeting planners and members of the hospitality industry to receive input on the expansion, including a Convention Center headquarters hotel. A specific focus group of hotel developers were invited to tour and discuss their input on the development of a headquarters hotel. Meeting planners expressed a strong need for a headquarters hotel, and several developers indicated interest in the development. As the Convention Center design progressed, the issues related to the hotel development were deferred until firm decisions were made regarding the scope of the phases of the Convention Center expansion. The City Council has concurred with the phasing and funding sources identified for the first $70 million expansion project. Requests for Quotations were received from five consulting firms in July 2000, in order to identify a consultant for the hotel development component of the project. On September 1, 2000, the Steering Committee for the expansion of the Convention Center interviewed three consultants, and based on these interviews agreed to recommend to the City Council a contract with C. H. Johnson Consulting, Inc. City staff has completed a proposed professional services agreement with C. H. Johnson, Inc., a copy of which is attached. l h f City of Fort Worth, Texas "011jor And CouncilCommunication DATE REFERENCE NUMBER [LOG NAME PAGE 10/17/00 C-18310 25HOTEL 2 of 2 SUBJECT AUTHORIZE CONTRACT WITH C. H. JOHNSON CONSULTING, INC. TO PROVIDE A MARKET AND FINANCIAL ANALYSIS FOR HEADQUARTERS HOTEL The proposed scope of services is as follows: Phase 1 • Update the assumptions utilized for the 1996 study based on the design and construction commitments of the Convention Center; and • Analyze all potential locations for a hotel development, including existing properties for expansion/renovation opportunities; and • Analyze the proposed T&P Terminal development and its relationship to and impact on the convention center hotel; and • Assist in developing a business plan for a hotel development, including financing options. Consulting service charges for Phase I will be on a time and materials basis, and are estimated to be approximately $77,800 in fees and approximately $11,670 in expenses, for a total not to exceed $89,470 for Phase I. Phase 2, as outlined in the Scope of Services (attached), would be subject to City Council approval and allocation of funds at the appropriate time. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds for Phase I of the project will come from the Public Events Facilities Fund maintained by the Fort Worth Convention and Visitor's Bureau. MG-.j Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) Mike Groomer 6140 APPROVED Originating Department Head: CITY ftT�/ COUNCIL Kirk Slaughter 8151 (from) OCT 17 2000 Additional Information Contact: 00'. } City Sembry of the Kirk Slaughter 8151 City of Fort Worth,Tesw