HomeMy WebLinkAboutContract 36692 CITY SECRETARY
CONTRACT NO.
PROFESSIONAL SERVICES AGREEMENT
This PROFESSIONAL SERVICES AGREEMENT ("Agreement") is
made and entered into by and between the CITY OF FORT WORTH (the
"City"), a home rule municipal corporation organized under the laws of the State
of Texas, acting by and through Libby Watson, its duly authorized Assistant City
Manager, and C. H. Johnson Consulting, Inc.("Consultant") AKA Johnson
Consulting, an Illinois, corporation authorized to do business in and in good
standing with the State of Texas, acting by and through Charles H. Johnson, its
duly authorized Principal.
1. SCOPE OF SERVICES.
1.1. Consultant's Services.
Consultant hereby agrees to provide the City's Parks and
Community Services Department ("PACSD") with professional
consulting services to assist PACSD in investigating the feasibility of
developing an amphitheatre at Gateway Park and other community
development goals (collectively called the "Project"). The Project is
described in detail in Exhibit "A", attached hereto and hereby made a part
of this Agreement for all purposes. The City and Consultant may change -
the scope of the Project by substituting an amended Exhibit "A", signed
by both the City and Consultant, which shall then be attached to this
Agreement and made a part of this Agreement for all purposes.
1.2. City's Duties.
The City shall provide Consultant access on a reasonably timely
basis to various City personnel for interviews, questions, consultation,
document reviews and other forms of participation necessary to the
Project. The City shall also provide Consultant with reasonable facilities
and equipment in order to allow Consultant to perform its duties and
obligations under this Agreement when it is necessary for Consultant to be
on-site.
1.3. Work Schedule.
Within thirty (30) days following the Effective Date of this
Agreement, as defined in Section 2, the City and Consultant shall
complete a written work schedule applicable to the Project ("
Schedule"). This Work Schedule shall establish timetables a1 'Jdd CIyik�I �'kEC i
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02-29-08 P03:"41 IN "�
milestones relating to and in accordance with each step or line item of
work referenced in Exhibit"A".
1.4. Work Product.
All work produced by Consultant under this Agreement
(collectively the "Work Product"), specifically including, but not limited
to, electronic spreadsheets, shall be owned, at all times, by the City.
Consultant shall deliver the Work Product to the City upon the termination
or expiration of this Agreement. The City shall have access to and be
entitled to review and copy any portion of the Work Product at any time.
Consultant may retain a copy of the Work Product except as to any portion
thereof that is proprietary or otherwise confidential.
2. TERM.
This Agreement shall commence upon the date that both the City and
Consultant have executed this Agreement ("Effective Date") and shall continue
in full force and effect for a term of one (1) year thereafter unless (i) terminated
earlier in accordance with the provisions of this Agreement or when the City has
provided Consultant with written notice that Consultant has fulfilled its
obligations under this Agreement and that Consultant's services are no longer
required or (ii) Consultant has not completed the Project by such time, in which
case this Agreement shall automatically renew for another term of one (1) year,
provided that the City has appropriated sufficient funds in its current budget to
pay Consultant any balance of the $74,175 in compensation specified by Section
3 hereof.
3. COMPENSATION.
Subject to the provisions of Section 4.2 of this Agreement, the City shall
pay Consultant a sum not to exceed $74,175 services provided and expenses
incurred in the carrying out and fulfillment of Consultant's duties and obligations
under this Agreement. The specific services and expenses involved in each step
of the Project are described in Exhibit "A". Notwithstanding anything herein to
the contrary, in no event shall Consultant be compensated any sum greater than
$74,175 for services provided pursuant to this Agreement unless this Agreement
is amended in writing by both the City and Consultant and such amendment is
approved by the City Council in a meeting that is open to the public.
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4. TERMINATION.
4.1. Written Notice.
The City may terminate this Agreement at any time and for any
reason or no reason by its providing the other party with written notice of
termination.
4.2. Duties and Obligations of the Parties.
In the event that this Agreement is terminated prior to its
termination, as provided in Section 2, the City shall pay Consultant for
services actually rendered as of the effective date of termination and
Consultant shall continue to provide the City with services requested by
the City and in accordance with this Agreement up to the effective date of
termination.
5. DISCLOSURE OF CONFLICTS AND CONFIDENTIAL
INFORMATION.
Consultant hereby warrants to the City that Consultant has made full
disclosure in writing of any existing or potential conflicts of interest related to
Consultant's services and proposed services with respect to the Project. In the
event that any conflicts of interest arise after the Effective Date of this
Agreement, Consultant hereby agrees immediately to make full disclosure to the
City in writing.
The City acknowledges that Consultant may use products, materials or
methodologies proprietary to Consultant. The City agrees that Consultant's
provision of services under this Agreement shall not be grounds for the City to
have or obtain any rights in such proprietary products, materials or methodologies
unless the parties have executed a separate written agreement with respect thereto.
Notwithstanding the foregoing, Consultant understands and agrees that the City is
subject to various public information laws and regulations, including, but not
limited to, the Texas Open Records Act. Consultant, for itself and its officers,
agents and employees, further agrees that it shall treat all information provided to
it by the City as confidential and shall not disclose any such information to any
third party without the prior written approval of the City.
6. AUDITS.
The City shall have, for three (3) years following the termination of this
Agreement and upon reasonable advance notice, access to and the right to
examine and audit any books, documents, papers, records or other data of
Consultant that involve transactions relating to this Agreement. Accordingly,
Consultant shall provide the City with access during normal working hours to all
of Consultant's facilities and with appropriate workspace at Consultant's facilities
necessary for the City to conduct examinations and audits in accordance with this
Agreement.
7. INSURANCE.
During the term of this Agreement, Consultant shall procure and maintain
at all times, in full force and effect, a policy or policies of insurance that provide
the specific coverage set forth in this Section 7 as well as any and all other public
risks related to Consultant's performance of its obligations under this Agreement.
Consultant shall specifically obtain the following types of insurance at the
following limits:
• Commercial General Liability:
$1,000,000 per occurrence; providing blanket contractual liability
insurance products and completed operations; independent contractor's
liability; and coverage for property damage to City facilities; and
• Automobile Liability:
$1,000,000 per occurrence or accident; including, but not limited to,
all vehicles, whether owned or hired, in use by Consultant, its
employees, agents or subcontractors; and
• Worker's Compensation/Employer's Liability:
Worker's compensation coverage as required by applicable law; and
Employer's Liability at $100,000 per accident.
Prior to the Effective Date, Consultant shall provide the City with
certificates of insurance that verify Consultant's compliance with the insurance
requirements of this Agreement. The City's Risk Manager shall have the right to
review and evaluate Consultant's insurance coverage and to make reasonable
requests or revisions pertaining to the types and limits of that coverage.
Consultant shall comply which such requests or revisions as a condition precedent
to the effectiveness of this Agreement.
8. INDEPENDENT CONTRACTOR.
It is expressly understood and agreed that Consultant shall operate as an
independent contractor as to all rights and privileges granted herein, and not as an
agent, representative or employee of the City. Subject to and in accordance with
the conditions and provisions of this Agreement, Consultant shall have the
exclusive right to control the details of its operations and activities and shall be
solely responsible for the acts and omissions of its officers, agents, servants,
employees, contractors and subcontractors. Consultant acknowledges that the
doctrine of respondent superior shall not apply as between the City, its officers,
agents, servants and employees, and Consultant, its officers, agents, employees,
contractors and subcontractors. Consultant further agrees that nothing herein
shall be construed as the creation of a partnership or joint enterprise between the
City and Consultant.
9. LIABILITY AND INDEMNIFICATION.
CONSULTANT SHALL BE LIABLE AND RESPONSIBLE FOR ANY
AND ALL CLAIMS, DEMANDS, LAWSUITS OR OTHER ACTIONS FOR
DAMAGES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO,
PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY,
INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR
CHARACTER, WHETHER REAL OR ASSERTED, TO THE EXTENT
CAUSED BY THE NEGLIGENT ACT(S) OR OMISSION(S),
MALFEASANCE OR INTENTIONAL MISCONDUCT OF CONSULTANT,
ITS OFFICERS,AGENTS, SERVANTS OR EMPLOYEES.
CONSULTANT COVENANTS AND AGREES TO, AND DOES
HEREBY, INDEMNIFY, HOLD HARMLESS AND DEFEND THE CITY, ITS
OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND
AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR DAMAGES OF
ANY KIND, INCLUDING, BUT NOT LIMITED TO, PROPERTY DAMAGE
OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO
CONSULTANT'S BUSINESS AND ANY RESULTING LOST PROFITS)
AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL
PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR
ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT, TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS
OR OMISSIONS OR MALFEASANCE OF CONSULTANT, ITS OFFICERS,
AGENTS, SERVANTS OR EMPLOYEESW11-71RIN RAF
11 0 ,�01
10. ASSIGNMENT AND SUBCONTRACTING.
Consultant shall not assign or subcontract any of its duties, obligations or
rights under this Agreement without the prior written consent of the City. If the
City grants such consent, the assignee or subcontractor shall execute a written
agreement with the City under which the assignee or subcontractor agrees to be
bound by the duties and obligations of Consultant under this Agreement.
11. COMPLIANCE WITH LAWS, ORDINANCES, RULES AND
REGULATIONS.
Consultant agrees to comply with all federal, state and local laws,
ordinances, rules and regulations. If the City notifies Consultant of any violation
of such laws, ordinances, rules or regulations, Consultant shall immediately desist
from and correct the violation.
12. NON-DISCRIMINATION COVENANT.
Consultant, for itself, its personal representatives, assigns, subcontractors
and successors in interest, as part of the consideration herein, agrees that in the
performance of Consultant's duties and obligations hereunder, it shall not
discriminate in the treatment or employment of any individual or group of
individuals on the basis of race, color, national origin, religion, handicap, sex,
sexual orientation or familial status. If any claim arises from an alleged violation
of this non-discrimination covenant by Consultant, its personal representatives,
assigns, subcontractors or successors in interest, Consultant agrees to assume such
liability and to indemnify and defend the City and hold the City harmless from
such claim.
13. LICENSES AND PERMITS.
Consultant shall, at its sole expense, obtain and keep in effect all licenses
and permits necessary for it to carry out its duties and obligations hereunder.
14. NOTICES.
Notices required pursuant to the provisions of this Agreement shall be
conclusively determined to have been delivered when (1) hand-delivered to the
other party, its agents, employees, servants or representatives, (2) delivered by
facsimile with electronic confirmation of the transmission, or (3) received by the
other party by United States Mail, registered, return receipt requested, addressed
as follows:
To THE CITY: To CONSULTANT:
City of Fort Worth
Parks and Community Services Dept. C. H. Johnson Consulting, Inc.
Richard Zavala, Director Charlie Johnson, Princi al
4200 South Freeway Suite 2200 6 East Munroe Street 5` Floor
Fort Worth, TX 76115 Chicago, Illinois 60603
Facsimile: (817) 871 5724 Facsimile: 312-444-1125
Or
Randle Harwood or Matt Thurber
City Managers Office
City Hall
1000 Throckmorton
Fort Worth Texas 76102
15. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Agreement, the City
does not waive or surrender any of its governmental powers.
16. NO WAIVER.
The failure of the City or Consultant to insist upon the performance of any
term or provision of this Agreement or to exercise any right granted herein shall
not constitute a waiver of the City's or Consultant's respective right to insist upon
appropriate performance or to assert any such right on any future occasion.
17. VENUE , JURISDICTION AND EXPENSES.
This Agreement shall be construed in accordance with the laws of the
State of Texas. If any action, whether real or asserted, at law or in equity, is
brought on the basis of this Agreement, venue for such action shall lie in state
courts located in Tarrant County, Texas or the United States District Court for the
Northern District of Texas, Fort Worth Division. In any such action, the
prevailing party shall be entitled to recover from the other party reasonable
attorneys' fees incurred in the bringing or defending of the action.
18. SEVERABILITY.
If any provision of this Agreement is held to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired.
19. FORCE MAJEURE.
The City and Consultant shall exercise their best efforts to meet their
respective duties and obligations as set forth in this Agreement, but shall not be
held liable for any delay or omission in performance due to force majeure or other
causes beyond their reasonable control, including, but not limited to, compliance
with any government law, ordinance or regulation, acts of God, acts of omission,
fires, strikes, lockouts, national disasters, wars, riots, material or labor restrictions
by any governmental authority, transportation problems and/or any other similar
causes.
20. HEADINGS NOT CONTROLLING.
Headings and titles used in this Agreement are for reference purposes only
and shall not be deemed a part of this Agreement.
21. ENTIRETY OF AGREEMENT.
This Agreement, including the schedule of exhibits attached hereto and
any documents incorporated herein by reference, contains the entire
understanding and agreement between the City and Consultant, their assigns and
successors in interest, as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and void to the
extent in conflict with any provision of this Agreement. This Agreement shall not
be amended unless agreed to in writing by both parties and, if required, approved
by the City's City Council.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement in multiples as of the later date below:
CITY OF FORT WORTH: C.H.Johnson Consulting Inc.
an Illinois corporation:
By: z By:
—(jj1j4, Li)
Joe Pan' gu Charlie Johns
Assistant City Manager Principal I
Date: a- �� C�?3 Date: 2�ZA ab
ATTEST: ATTEST:
By: By:_j q4fx
City Secretary
APPROVED AS TO FORM AND LEGALITY:
94i�"-z
Assistant City Attooly
M & C: C-2266 y 2-/2 -oe
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vi�i�,,J::,l
�Y, fl`,'- 't TN, TEX.
STATE OF VkwoiS §
COUNTY OF Gcc*� §
BF;'QR,E ME, the undersigned authority, a Notary Public in and for the
State of Texas, on this day personally appeared Charlie Johnson, known to me to be
the person whose name is subscribed to the foregoing instrument, and acknowledged
to me that the same was the act of C.H. Johnson Consulting Inc. and that she
executed the same, and had authorization to execute the same, as the act of C.H.
Johnson Consulting Inc. for the purposes and consideration therein expressed and
in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
2008.
♦e�eseesesessessooseseooeeee
o "OFFICIAL SEAL"
°s MARIA L. VIVANCO °o
s Notary Public,State of Illinois : Norary P lic in and for the State of -"I h iI
My Commission Expires 03/20/11 ;
oseooeeeeeeeeeeoeeeeeeeeoeoe
STATE OF TEXAS §
COUNTY OF TARRANT §
�Oe.pU n 145Llo✓
BEFORE ME, the undersigned authority, Notary Public in and for the
State of Texas, on this day personally appeared , known to me to be
the person whose name is subscribed to the foregoing instrument, and acknowledged
to me that the same was the act of the City of Fort Worth and that he executed the
same as the act of the City of Fort Worth for the purposes and consideration therein
expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
2008.
o
,PHrF MARIA S. SANCHEZ
NOTARY PUBLIC Z�:
�y STATE OF TEXAS
9rP ,t my Comm.UP.12.14-2009 Notary Public in and for the State of Te As
EXHIBIT "A"
EXHIBIT 1. SCOPE OF WORK
Task 1. Project Orientation and Stakeholder Input
Johnson Consulting and its selected M/WBE, the Projects Group, will meet with
The City of Fort Worth and associated representatives to confirm the objectives
of the study, develop clear lines of communication, and review project
methodology. Johnson Consulting will also use this opportunity to begin project
fieldwork. Work to be performed includes:
■ Gathering and analyzing background information related to the feasibility
of developing an amphitheatre at Gateway Park.
■ Identifying appropriate contacts and resources necessary to ensure
complete review and assessment of issues and specific data.
■ Obtaining information and data from client representatives and
appropriate governmental agencies.
■ Touring the proposed development site, in Gateway Park, and other
performance or entertainment venues in the metro area.
■ Planning and holding various meetings described in the tasks below.
■ Touring and/or studying other suburban or park amphitheaters and
entertainment facilities in the U.S.
■ Hold two workshops with community stakeholders and residents to
discuss the project experience in other cities, realistic expectations for
projects such as this and their interest in such a project.
Task 2. Market Analysis
Johnson Consulting will evaluate The City of Fort Worth's potential as an
amphitheater and events submarket, based on population, income, stature,
transportation, and other factors. We will also analyze the competitive offerings
in the region in order to determine how under- or over-served the market is in
terms of arts, culture, and entertainment venues. This analysis will provide a
realistic assessment of The City of Fort Worth's strengths, weaknesses, and
opportunities as a location for an arts and entertainment performance venue.
Among the data to be gathered and analyzed for The City of Fort Worth, and a
set of peer cities will be:
■ Population and demographic trends.
■ Analysis of the commercial, office, and residential development in the
City of Fort Worth that may impact the attendance, patron support, and
use of an arts and entertainment venue.
■ Income and employment trends, including any major employers expected
to enter or leave the market.
• Transportation capacity and access to other markets in the region.
■ Hotel supply and growth patterns.
■ Entertainment and amphitheater seats per capita.
■ Arts,entertainment,convention,and tourism marketing resources.
■ Historical support for the arts, including performance and advocacy
organizations.
■ Portfolio of facilities, including convention centers, conference centers,
amphitheaters,arenas,stadiums,and fairgrounds.
■ Fair share of event demand and penetration of demand in relation to
peers.
■ Interpretation of why The City of Fort Worth's penetration may or may
not achieve or exceed its fair share based on economic and demographic
considerations.
Task 3. Interviews and Surveys
We will interview promoters, ticket brokers and event presenters that are located
in/active in the area to analyze and identify specific market opportunities for the
City of Fort Worth and for the potential amphitheater.
Johnson Consulting has extensive survey experience and will personally call all
regional event promoters and event producers active in the region.
Task 4. Regional Facility Analysis
Johnson Consulting will review and analyze the current and proposed
competitive performance venues in the region. We will assemble information on
existing and planned facilities in the metro area that may compete or
complement the Amphitheater. This data will include: a description of the
facilities; number of seats; number of events by type; annual attendance; and
other measures of facility performance. Facilities reviewed will range from major
venues to smaller community theaters. The analysis will also assess the venue's
approach to operations- third party vs. municipal or other and understand the
terms of these relationships.
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Task 5. Comparable Facilities Analysis
Working with you, we will select certain facilities and operators that have some
resemblance to a recommended model for successful operation. We will
interview management and compile statistical data on the size, quality, and
performance of arts and entertainment venues in comparable markets
throughout the U.S. We will work with client representatives to select a set of
three to four comparable facilities. Case study information on the comparable
facilities will be used to summarize:
■ Seating capacity, event and attendance information, and financial
information,including operating income versus expenses.
■ Unique marketing and packaging strategies
■ Tenants and various series that are anchored within the venue.
■ Schools and other programming that support demand.
■ Size,configuration and image.
■ Access,parking and traffic flow needs
■ Unique design characteristics that enable the facility to attain a
preferred market position (i.e. world-class restored historic theatre
with modern amenities).
• Trends seen in the most recently designed facilities.
■ Operating revenue and expenses, with an explanation of each
major revenue and expense category.
■ Capital budget and approach to financing.
■ Public sector and private sector benefactor support.
Task 6. Demand Projections
Johnson Consulting will prepare finalized demand projections for the proposed
Venue and outline the potential demand for events and activities for the first ten
years of operation. These demand projections will specifically address the
following:
■ Event days by type of event.
■ Number of performances.
■ Attendance.
■ Total use days.
■ Achievable ticket prices.
■ Specialty seating (corporate seats) market potential and pricing.
Our demand assumptions will be tested using two analytic methods:
■ 'Bottom-up' approach reflecting current market demand, annual repeat
events in the market, events turned away, and transfers from other
location, and
■ 'Top-down' approach reflecting analysis of comparable facility demand,
relative levels of supply and demand in the overall market and
anticipated future market share.
Task 7. Financial Pro forma, and Operating Model
Building on the demand projections, Johnson Consulting will develop a pro
forma that details the financial and operating characteristics of the proposed
amphitheater for the first ten years of operations, including a preopening period.
The operating model will be based on a size and configuration of facility that is
recommended by Johnson Consulting. The recommended model will fit on the
proposed site and be economically feasible in the Fort Worth market area. The
amphitheater model described will meet the needs of the community as defined
in Tasks 1, 2, and 3. The projection will be the product of a flexible Excel model.
As the model is flexible, we will provide three scenarios ("likely,"
"conservative," and "optimistic"). The pro forma will include the projection of
creative sources of operational income and each item will be defensible.
This model will list all revenues and fixed and variable expenses in line-item
detail throughout the period of the projection, and will include data for each
individual type of event.Our financial model will generate a pro forma operating
statement that includes (but is not limited to) the revenue and expense items
shown in the table below.
Revenue Expenses
Ticket Sales Payroll and Related
Restoration & Facility Fees Cost of Attractions & Related
Service Charges Credit Card Fees
Concessions Repairs & Maintenance
Novelties Advertising & Marketing
Advertising Utilities & Building Security
Sponsorships Insurance
Corporate Seating Management& Programming
Naming Rights Reserves for Replacement
Dues & Memberships Debt Service
Other Revenue Other Expenses
The analysis will have a specific discussion regarding revenue sources that are
available to such venues, including naming rights and other advertising
' ,0
revenue, and project the amounts that can be generated throughout the
projection period.
Task 8. Third Party Operator Recruitment
As part of our work, we will analyze the appropriateness of a third party
operator vs. a City run operation. Once consensus is reached with the City and a
determination is made to pursue a third party operator, we will perform the
following duties. These duties are very similar to those we performed on behalf
of the City as it sought a headquarters hotel.
1. Compile a list of potential operators, active both regionally and
nationally
2. Work with City Purchasing to develop requests for Qualifications and
Requests for proposals
3. Advertise the opportunity in appropriate trade and local publications
4. Receive responses and analyze them
5. Work with legal counsel and city officials to negotiate an equitable management
agreement.
Exhibit 2. A. SCHEDULED REPORTS AND MEETINGS
Johnson Consulting will complete the market and financial analysis in
approximately 10 weeks. An additional 12 weeks is estimated to allow for the
City to arrive at consensus about the project. As appropriate, during this same
time,we can conduct the third party operator solicitation.
WORK PROGRAM AND PROJECT TIMING
City of Ft.Worth Theater/Entertainment Venue Feasibility Analysis
Task Week 1 I Week 21 Week 7 1 Week 1 1 Week 6 1 Weak 8 1 Week 7 1 Week S 1 Week 8 1 Week 101 Weeks 11.22
cc cc oc
Task 1-Project Orientation and Stakeholder Input M
Task 2-Market Analysis
Task 7-Interviews and Surveys
Task!-Regional Facility Analysis M
Task S-Comparable Facilities Analysis D
Task S-Demand Projections M
Task 7-Financial Proforma and Operating Modal D
Final Report/Presentations M.F
Task S.Third Party Operator Recruitment
Consensus Building Workshops
CC-Conference Call
D•Draft Report Product
M:
Meeting/Presentation/Progress Report/Public Meeting
F Final Report
We will schedule periodic work sessions to discuss key findings. We have
budgeted for three formal meetings - kickoff, market analysis workshop, and
final workshop/presentation as well as trips to visit two comparable facilities.
Our staff may also be in the market to conduct fieldwork at other points during
the study process, if necessary. We will also be available for meetings during
these fieldwork trips, and via conference calls.
EXHIBIT 23 COST PROPOSAL
We will complete the preceding scope of work for fee and the expense amounts
outlined below. In order to allow shifting of work where priorities may reveal
themselves, the budget will be treated as a lump sum amount, and will be billed
in four equal installments over the course of the engagement.
PROPOSED FEES& EXPENSES
City of Ft.Worth Theater/Entertainment Venue Feasibility Analysis
Designated
Task to The Fees
Projects
Group
Market Analysis-Tasks 1-6" 25% $37,000
Financial Analysis-Task 7 10% 9,500
Third Party Operator Solicitation and Negotiation-Task 8 10% 12,000
Consensus Building Workshops 80% 6,000
Total $64,500
Expenses @ 15%of Fees $9,675
Total Fees and Expenses $74,175
'Study can be terminated at end of Market Analysis if facility is not warranted
If services outside of this scope of services are requested they will be billed at
our standard hourly rates, as noted below.
Johnson Consulting Hourly Rate Schedule
2007-2008 Hourly
Rates
Principal/President $315
Vice President $300
Senior Consultant/Project Director $250-$280
Project Consultant $175-$225
Support $75
Expenses will be billed in addition to fees. Expenses will be billed at 1.1 times
cost for items typically incurred for such assignments, such as travel, data,
graphics,report production and administrative recovery.
We will submit invoices for the project in thirds, with the first invoice being
submitted at the commencement of the assignment, the second invoice being
submitted at week five and the third invoice being submitted upon issuance of
the draft report.
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 2/12/2008 - Ord. No. 17985-02-2008
DATE: Tuesday, February 12, 2008
LOG NAME: 02AMPHITHEATER REFERENCE NO.: C-22669
SUBJECT:
Authorize the City Manager to Execute an Agreement with C.H. Johnson Consulting, Inc., for a
Feasibility Study Pertinent to the Development of an Amphitheater in Gateway Park and Authorize
the Transfer from Gas Well Bonus Revenue to the Park Gas Lease Project Fund and Adopt
Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Approve the transfer of $74,175 from Gateway Gas Well Bonus Revenue to the Park Gas Lease Project
Fund to fund the feasibility study at Gateway Park;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations by $74,175
in the Park Gas Lease Project Fund from Gateway Gas Well Bonus Revenue; and
3. Authorize the City Manager to execute an agreement with C.H. Johnson Consulting, Inc., for a feasibility
study pertinent to the development of an amphitheater in Gateway Park at a total cost of$74,175.
DISCUSSION:
On May 14, 2002, (M&C G-13624) the City Council adopted the Gateway Park Master Plan, covering the
future plans for the 503.8 acre park. Included in the Master Plan is a proposed amphitheater complex. In
public meetings regarding the future plans for the park, the public has indicated that the development of an
amphitheater complex is one of their top priorities.
In response to this demand, a Request for Qualifications/Request for Proposals (RFQ/RFP) was issued on
June 19, 2007. Proposals were received from interested consulting firms on July 27, 2007. A staff
committee was formed, consisting of representatives from the City Manager's Office, the Parks and
Community Services Department, Economic Development, and Public Facilities and Events. On
September 4, 2007, the Committee met to review each of the proposals. Scores were compiled for each
proposal reflecting how well each addressed the criteria given in the RFQ/RFP.
The top three firms were then notified of their placement on the short list and interviewed on October 16,
2007. The three participating firms were scored by the Committee, and the highest scoring firm, C.H.
Johnson Consulting, Inc., was recommended by the Committee to perform the feasibility study for the City
of Fort Worth.
The feasibility study will contain the following components:
I. Project Orientation and Stakeholder Input
The first component of the study will entail gathering and analyzing background information related to the
Logname: 02AMPHITHEATER Page I of 3
feasibility of developing an amphitheatre at Gateway Park. The firm will identify appropriate contacts and
obtain information and assess specific issues related to the potential development. They will also tour the
proposed site and comparable venues in the area. In addition, they will hold two workshops with
community stakeholders and residents to discuss the project experience in other cities, realistic
expectations for the project, and their interest in such a project.
II. Market Analysis
The second component of the study will entail gathering population and demographic information,
understanding how new and existing development may impact the use of the facility, analyzing income and
employment trends, and analyzing transportation capacity and hotel supply. The firm will use the number
of entertainment facilities in the area to understand how this facility will get its fair share of event demand in
relation to its peers.
III. Interviews and Surveys
The third component of the study entails conducting interviews and surveys with promoters, ticket brokers
and presenters that are located in/active in the area to analyze and identify specific market opportunities
for the City of Fort Worth and for the potential amphitheater.
IV. Regional Facility Analysis
The fourth component of the study entails reviewing and analyzing the current and proposed competitive
performance venues in the region. The types of data gathered for this component include: facility
description, number of seats, types of events, annual attendance, and other measures of facility
performance.
V. Comparable facility analysis
The fifth component of the study entails conducting case studies of comparable venues throughout the
United States including information such as: seating capacity, event and attendance information, financial
information such as operating income versus expenses, unique marketing and packaging strategies,
schools that support demand, size and configuration of the venue, parking and traffic flow, unique design
characteristics, capital budget and approach to financing, and public sector and private sector benefactor
support.
VI. Demand Projections
The sixth component of the study entails making demand projections, including: event days by type of
event, number of performances, attendance, total use days, achievable ticket prices, and specialty seating
(corporate seats) market potential and pricing.
VII. Financial Pro forma and Operating Model
The seventh component of the study entails developing a pro forma that details the financial and operating
characteristics of the proposed amphitheater for the first ten years of operations, including a pre-opening
period.
Vill. Third Party Operator Solicitation and Negotiation
The eighth component of the study entails assessing the venue's approach to operations. The firm will
analyze third party versus municipal or other approaches to operation and understand the terms of these
relationships. The firm will then compile a list of potential operators, work with the Purchasing Department
to develop requests for qualifications and requests for proposals, advertise the opportunity in appropriate
trade and local publications, receive and analyze responses, work with legal counsel and city officials to
negotiate an equitable management agreement.
C.H. Johnson Consulting, Inc., is in compliance with the City's M/WBE Ordinance by committing to 22
percent M/WBE participation. The City's goal on this project is 7 percent.
In return for performing the feasibility study, the City has agreed to pay C.H. Johnson Consulting, Inc.,
$74,175 in fees and expenses. The structure of the fees is as follows:
Logname: 02AMPHITHEATER Page 2 of 3
Component Cost
Market Analysis $37,000.00
Financial Analysis $9,500.00
Third Party Operator Soliciations and Negotiation $12,000.00
Consensus Building Workshops $6,000.00
Total $64,500.00
Expenses at 15 Percent of Fees $9,675.00
Total Fees and Expenses $74,175.00
This project is in COUNCIL DISTRICT 4 and will benefit the entire city.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance, funds will be available in the current capital budget, as appropriated in
the Park Gas Lease Project Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
C282 531200 801580033710 $74,175.00 C282 446100 801920033710 $74,175.00
C282 531200 801580033710 $74,175.00
Submitted for City Manager's Office by: Joe Paniagua (6191)
Originating Department Head: Randle Harwood (6101)
Additional Information Contact: Matt Thurber (6159)
Logname: 02AMPHITHEATER Page 3 of 3