HomeMy WebLinkAboutContract 29073 AMENDMENT NO. 2
C. H. Johnson Consulting, Inc. r�
STATE OF TEXAS § CITY SECRETARY CONTRACT NO.C� rq 0 i
COUNTY OF TARRANT §
WHEREAS, the City of Fort Worth ("City") and C H Johnson Consulting, Inc.
("Consultant') made and entered into City Secretary Contract No. 26301 (the "Contract")
on October 18, 2000, said contract being amended with the First Amendment (City
Secretary Contract No. 27016) made and entered into on August 9, 2001; and
WHEREAS, the Contract involves consulting services for the following project:
Determine the feasibility of a convention center headquarters hotel
and prepare and implement a Request for Qualifications and
Proposals and other such documents necessary for negotiating the
development of a convention center headquarters hotel.
WHEREAS, it has become necessary to execute Amendment No. 2 to said
Contract for the purpose of amending the scope of work.
NOW THEREFORE, City and Consultant, acting herein by and through their
duly authorized representatives, enter into the following agreement that amends the
Contract:
1.
Section 1, "Scope of Services" of the Contract is amended to include the
additional consulting services specified in Exhibit "A" dated August 25, 2003, a copy of
which is attached hereto and incorporated herein. The cost to City for the additional
services to be performed by Consultant is not to exceed $360,000.00.
2.
Section 3, "Compensation" of the Contract is amended to provide for an increase
in the maximum fee to be paid to Consultant for all work and services performed under
the Contract, as amended, so that the total fee paid by the City for all work and services
shall not exceed the sum of$634,406.00.
EXECUTED on this the t� day of , 2003, in Fort
Worth, Tarrant County, Texas.
APPROVAL RECOMMENDED: APPROVED:
PROVaED
4(irk N. -Slaughter, Director e P i
Jo i tA
t I
Department of Public Events Assis i anager
ATTEST: C H Johnson Consulting, Inc.
oria Pearson, City�retary Charles H. Johns
�n, resident
APPROVED AS TO FORM AND LEGALITY:
94/L/
Gary Stein�berger
Assistant City Attorney
C — In82
Contract Authorization
—
Date
7,7
C.H. JOHNSON CONSULTING, INC. Exhibit "A"
EXPERTS IN CONVENTION,SPORT AND REAL ESTATE CONSULTING
Amendment of
Scope of Services and Estimated Fees
Dated August 25, 2003
The original scope of services was significantly expanded due to the specific
demands of the project and expenses and fees exceeded estimates provided in
Exhibit "A" and "B" of the original contract. To complete the project, the
following scope of services will be completed by Johnson Consulting
1. Evaluation and assistance in ranking responses for Request for
Qualifications for Architectural Design Services (02-0250) and Request for
Proposals for Construction Manager at Risk (02-0251).
2. Notification and communication with responders when project was put on
hold due to Citizens Petition.
3. Presentations to Citizens Committee on Fort Worth's Future.
4. Consultation with City regarding alternatives method of hotel
development.
5. Evaluation and assistance in submitting, coordinating and ranking
responses for Request for Proposals for Headquarters Hotel Development
(RFP No.03-0179)
6. Provision of example documents from similar transactions, which serve as
base documents used by attorneys and the City Finance Department
7. Development of various policy documents, room block agreements,
management contracts,developer agreements.
8. Negotiation with the selected developer.
9. Final update of convention center demand projections for bond issue.
10. Assistance in refining the relationship between the CVB and the expanded
convention center.
11. Other services,requested by the City.
Estimated Fees
Fees associated with this work are estimated at approximately $12,000 per month,
plus expenses. It should be noted that depending on the hours requested by the
City, the monthly fees and expenses have ranged in the past from $3,000 to
$38,000. This results in estimated additional fees and expenses of:
Scope of Services August 25,2003 Page 2
Addendum
Previous budget
4 months at$12,000 $ 288,000
Expenses at 15% $ 43,200
Contingency $ 28,800
otal $ 360,000
Johnson Consulting will bill for services on a time and materials basis, not a task
basis. The estimated contract amount will be up to$316,800 in fees,approximately
$29,000 in expenses, for a total not to exceed $360,000.
Additional services not included in the above scope of work will be billed at
current hourly rates.
City of Fort Worth, Texas
4vagoir And council Communication
DATE REFERENCE NUMBER LOG NAMEGE
3/5/02 C-18988 25PORTMAN PA1 of 3
SUBJECT AGREEMENT WITH PORTMAN DEVELOPMENT, LLC AND PHELPS PROGRAM
MANAGEMENT, LLC FOR EXCLUSIVE NEGOTIATING AND PRE-DEVELOPMENT OF
A CONVENTION CENTER HOTEL AND ADOPTION OF THE ATTACHED
APPROPRIATION ORDINANCE
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a non-interest bearing inter-fund loan from the General Fund to the Hotel Development
Fund in the amount of $2,580,414 for interim financing for pre-development of a Convention Center
hotel pending the issuance of bonds, notes, or other obligations to fund the acquisition and
construction costs of the Convention Center Hotel; and
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Hotel Development Fund in the amount of$2,580,414 from available funds; and
3. Authorize the City Manager to execute an Exclusive Negotiating and Pre-Development Agreement
(Agreement) with Portman Development, LLC and Phelps Program Management, LLC for exclusive
negotiation and pre-development of a Convention Center Hotel in substantially the same form as
that attached hereto as Exhibit "A".
DISCUSSION:
On June 13, 2001, a Request for Proposals (RFP) was issued to obtain a hotel development company
to develop a hotel property adjacent to the newly expanded Fort Worth Convention Center. The
selection committee (comprised of City Council members, City staff, and representatives from UBS
Paine Webber, First Southwest, Austin Commercial, and the Fort Worth Convention & Visitors Bureau
Board of Directors), interviewed four development companies who responded to the RFP. The
committee recommended that the City negotiate with Portman Development, LLC for the development
of the new hotel.
On September 18, 2001, the City Council issued a resolution and selected Portman Development, LLC
and Phelps Program Management, LLC to assist with the development of a Convention Center Hotel
and parking facility.
The City has retained UBS Paine Webber as underwriter for the obligations to be issued pursuant to the
City's financing plan with respect to the construction and development of the project.
The City has also retained HVS and C. H. Johnson to prepare market studies to determine the viability
of construction, operating a hotel, optimum quality level, and size of the hotel. HVS has reported that
the newly expanded Fort Worth Convention Center and market dynamics will support the establishment
of a competitive, first class Convention Center Hotel.
City of Fort Worth, Texas
41"nuor And council 4:ommu"icntio"
DATE REFERENCE NUMBER LOG NAME PAGE
3/5/02 C-18988 25PORTMAN 2 of 3
SUBJECT AGREEMENT WITH PORTMAN DEVELOPMENT, LLC AND PHELPS PROGRAM
MANAGEMENT, LLC FOR EXCLUSIVE NEGOTIATING AND PRE-DEVELOPMENT OF
A CONVENTION CENTER HOTEL AND ADOPTION OF THE ATTACHED
APPROPRIATION ORDINANCE
The proposed Agreement provides the framework for City staff to exclusively negotiate with Portman
Development, LLC and Phelps Program Management, LLC to create a development and management
agreement for the Convention Center Hotel and parking facility. The term of the Agreement will be 180
days from the date of execution.
This Agreement will provide the basis for pre-development activities including: hotel conceptual design,
selection of hotel operator and parking operator, feasibility studies, cost estimates, and guaranteed
maximum price. This will move the development to a position where it can be marketed to the
investment community.
Additional services to be performed or obtained by the City (and the estimated costs) include:
• Environmental testing $15,000
• Geotechnical $25,000
• Parking study $15,000
• Traffic evaluation $15,000
• Architectural topographic survey $25,000
• Contingency $20,000
Austin Commercial, the program management company on the Fort Worth Convention Center
expansion, will oversee the additional services on behalf of the City.
Additional professional services and estimated costs include:
• Architectural Services - HOK $50,000
• Consulting Services - C.H. Johnson $95,000
• Project Management - Austin Commercial $60,000
• Contingency $30,000
The total estimated budget for pre-development is $2,580,414.
The City Council hereby finds, considers, and declares that the reimbursement of the payment by the
City of such expenditures, will be appropriate and consistent with the lawful objectives of the City, and
as such, chooses to declare its intention, in accordance with the provisions of Section 1.50-2 of the U.S.
Treasury Regulations, to reimburse itself for such payments at such time as bonds, notes or other
obligations are issued to fund the ultimate acquisition and construction costs of the Convention Center
Hotel.
City of Fort Worth, Texas
"01.10ir And Council 4zommtwicaido"
DATE REFERENCE NUMBER LOG NAME PAGE
3/5/02 C-18988 25PORTMA7N 3 of 3
SUBJECT AGREEMENT WITH PORTMAN DEVELOPMENT, LLC AND PHELPS PROGRAM
MANAGEMENT, LLC FOR EXCLUSIVE NEGOTIATING AND PRE-DEVELOPMENT OF
A CONVENTION CENTER HOTEL AND ADOPTION OF THE ATTACHED
APPROPRIATION ORDINANCE
All costs to be reimbursed as herein described, to the extent such expenditures constitute capital
expenditures, shall be funded by bonds, notes or other obligations to be issued within 18 months of the
later of (i) the date the expenditures are paid or (ii) the date on which the property, with respect to which
such expenditures were made, is placed in service; and the foregoing notwithstanding, any such bonds,
notes or other obligations will not be issued on a date that is more than three years after the date any
expenditure which is to be reimbursed is paid.
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 operating budget, as
appropriated, of the Hotel Development Fund. Upon the issuance of bonds, notes or other obligations
to fund the acquisition and construction costs of the Convention Center Hotel, the inter-fund loan of
$2,580,414 will be returned to the General Fund.
JP:n
Submitted for City Manager's FUND I ACCOUNT I CENTER AMOUNT CITY SECRETARY
Office by: (to)
1) R194 220001 000194025001 $2,580,414.00
Joe Paniagua 6140 2) R194 485XXX 025194025001 $2,580,414.00
Originating Department Head: 2) R194 539120 025194025001 $2,580,414.00
APPROVED AS AMENDED
Kirk Slaughter 2501 (from) ORD.#15008 315/02
1) GG01 136194 0000000 $2,580,414.00
Additional Information Contact: 3) R194 539120 025194025001 $2,580.414.00
Kirk Slaughter 2501