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HomeMy WebLinkAboutR-2011-029 Agreement JRV Consulting Resolution R-2011-029 A RESOLUTION AUTHORIZING AND APPROVING AN AGREEMENT BY AND BETWEEN THE CITY OF RIVERSIDE, MISSOURI AND JRV CONSULTING, INC FOR FINANCIAL ADVISOR SERVICES WHEREAS, the City of Riverside, Missouri (the "City") has negotiated with JRV Consulting, Inc. (the "Advisor") for the provision of services by the Advisor to the City; and WHEREAS, the City and the Advisor have reached an agreement concerning the provision of services as an independent contractor; and WHEREAS, the Board of Aldermen have determined it is in the best interest of the City to enter into an agreement with Advisor in substantially the same form as attached hereto as Exhibit A; NOW, THEREFORE, BE IT RESOLVED, by the Board of Aldermen of the City of Riverside, Missouri, as follows: THAT the Agreement between the City and JRV Consulting, Inc. in substantially the same form attached hereto as Exhibit "A", is hereby authorized and approved; FURTHER THAT the execution and delivery of the Agreement by the Mayor is approved, and the City Administrator and city staff are authorized to take such other actions reasonably necessary to carry out the intent of the Agreement on behalf of the City, the execution of the Agreement being conclusive evidence of such approval. PASSED AND ADOPTED by the Board of Aldermen and APPROVED by the Mayor of the City of Riverside, Missouri, the 3` day of May, 2011. �/ � Ma or Kathleen L. Rose AT7EST: '' � ��='��t.n-� � �iL2 � � obin Littrell, City Clerk Approved as to Form: a o son, City Attorney �JR,V Apri14, 2011 Michael C Duffy, AICP I Director of Community Development � 2950 NW Vivion Road Riverside, Missouri 64150 � Dear Michael: JRV Consulting, Inc. is pleased to offer our services to help the City of Riverside study and analyze the market demands and viability of building an ice arena in their community. The City was approached by KCIce, a non-profit organization, established by a local group of private and public representatives whose mission is to promote and grow ice-based sports and recreational skating and hockey by building a new facility. The following proposal represents my understanding of the scope of services the City of Riverside is seeking. The proposal has two parts; the first to evaluate the KClce business plan to understand and determine whether to build, what to build and how to fund and manage the business. The second part of the proposal is a scope to oversee the design, engineering, construction, commissioning, establish the management operating policies and procedures and oversee the start up and operation through its inaugural season... After a11, if this project is feasible, the success of this type of venture is closely tied to the capability and perforniance of the management team. Project Description KCIce has assembled a team of highly capable and qualified professionals with management, business, financial and marketing backgrounds. Due to the closing of another two surface arena, they are anxious to open the facility in August or September 2012; a short 16 months away. The City of Riverside is interested in economic growth and is intrigued by the approach by KC Ice but wants JRV Consulting to recomrnend a course of action on what to build, who should manage the operation and market potential for the proposed facility. The JRV staff and principal consultant Dr. Jack Vivian has extensive experience in conducting facility studies. His work produces financial projections, planning and designing of recreational and sport facilities. All of JRV Consulting qualifications and experience can be provided upon request. Scope of Services Phase One (1): JRV proposes to provide the following services: l. Evaluate the KCIce Business Plan: Detennine if there is an adequate population to support a proposed multi-purpose ice/dry-floor arena in the City of Riverside. I ��J 2. Assess Demand: To determine if current and future demand for ice and dry-floor events make it financially feasible to build a multi-purpose ice arena in the City Propose the I types of activities that would make the facility succeed. 3. Compare other Facilities: Conduct a comparable facility analysis of the ice arenas surrounding the City. JRV will look at the fees being chFxrged, the length of season, the demand for additional ice and the financial and programmatic success of the venues. This information will help deternune if there is a demand for additional ice surfaces in this market. 4. Funding: Leadership, Fundraising, Grants, Bonding • JRV proposes to work directly with the City to raise the funds. i • Prepare financial projections to demonstrate financial and programmatic viability of programs. 5. Provide a report detailing our findings, conclusions and recommendations. The report will include: • A proposed fee structure for the activitics and events to be held in the facility. • Recommend management structure to conduct the programs, activities and cvents (if different than what KCIce proposed). • A pro forma budget with projected income and expenses based on expected level of usc. (If different than what KCIce proposed). • Estimate the probable cost of conslruciing and equipping the proposed facility. • Analyze the net operating funds against the cost of funding the project and the anticipated return on the investment or losses for thc City. The City recognizes that ice arenas are not known to make money, especially in emerging markets like Kansas City. In fact, the likelihood of losing money for the first few years is a real possibility, especially if competition enters the marketplace, there is adverse publicity about fl�e project or the economy takes a down turn. .TRV will assist the City and KCIce with determining what activities, events and programs will be included in the design based on their demand, rate of retum relative to cost and the benefit to the community. As a part of this phase, JRV will write a Program Statement detailing the activities, events, spaces and relationships that must function efficiently and be included in the Pacility. The architect and engineers will design the arena to the specifications and conditions outlined in that statement. Phase Two (2) JRV is prepared to assume responsibility for project leadership, coordinate funding and day- to-day managcment of the construction and to work in harmony with the rest of the City operation. JRV will control their scope of services and fees by providing materials, samples, and bidding such items as the ice plant and floor, dehumidification and heating, ventilation and air conditioning systems as separate, design-build contracts. JRV will competitively bid all aspects of the project and establish the final construction budget based on meeting the KCIce vision, having a state-of-the-art finished project using �JRV durable but attractive finishes. Once open, this facility will set the standard for ice arenas in the area from that point forward. I • Site Plan, Design, Engineer, Consiruction and Eguipment • Review architectural design and layout options • Produce blueprint plans, specifications and bid documents with preliminary cost estimates for approval by the City. • Rcvicw engineering plans and specifications I • Identify and recommend ice and mechanica] contractors. � • Write specifications and identify suppliers for the refrigeration and dasher board systems. Review shop drawings and inspect installations. • Prepare a detailed list of fumiture, fixtures and equipment (FF&G) requirements and assist the City with bidding and ordering. JRV has volume-purchasing relationships with many of tlte suppliers and will pass those discounts on to the City. • Provide site inspections during construction phases (ice floor pour, refrigeration start-up and commissioning). • Determine work-in place and appro�ing professional services payment requests. Provide management oversight to start up, open, operate and program the facility including, hiring, training and supetvising thc management and operational staff. The cost of staffing and operating the ice arenas will come from the operation although, the KCIce will need to provide, warking capital, start-up funds and therefore, the City could be called on to subsidizc the operation if the business is slow in getting started or the economy further impacts the interest in skating and hockey. Sample Management Oversight Activities: • JRV agrees to oversee the day-to-day operation of the facility including food and beverage, retail and novelties, marketing, program development, ice operations, mainlenance and supen�ision. • JRV proposes a one (1) year management oversight agreement with renewable options by the City. • JRV wi11 be named as additional insured on liability policies held by the City. Client Responsibilities The City will be responsible for: 1. A project manager assigned lo serve as liaison to JRV Consulting, Ina This person will coordinate the schedul ing of ineetings, collection of inforrnation and communication with JRV. 2. Attending regular meetings to review schedules, set deadlines and assess and evaluate the outcome of the various initiatives. Good communication solves a lot of probiems. 3. Meeting and housing space for the project team at the site in the early stages. Consultants We do not anticipate the use of consultants for any aspects of this project inasmuch as the anticipated planning skills needed for this assignment fall within the capability of our staff. If special needs arise for which it is mutually agreed that the services of outside consultants are to be employed, such special services will be discussed with the City at ,. . �'�JRV the appropriate time. The architect, engineers and other construction related professionals will bid for their roles and have separate contracts. Fees for Services JRV proposes to provide the services of our staff according to the scope of services outlined in the two phases identified above; Phase One: JRV proposes to provide the scope of service outlined above for a not-to-exceed fee of twelve thousand dollazs ($12,000) plus reimbursable expenses for two site visits to � Riverside. Phase Two: JRV proposes to provide the f'ollowing services during this phase of the project: Project Management: JRV will provide Project Management for a not-to-exceed fee of two and one-half pereent (2 1/2%) oFthe construction cost of the project. The construction costs will not include professiona] fees, permits and insurance but should include, site work, utilities and the FF&E. Once the full scope of the project is determined, a monthly payout schedule, based on a percentage of work in place or flat monthly fees, will be developed I and mutually agreed upon as a payment structure. Management Oversight JRV will provide pre-opening and day-to-day management oversight for a monthly consulting fee of four thousand five hundred dollars ($4,500) per month. Reimbursable Fxpenses In addition to the fees cited, the following reimbursable expenses will be bi]led at actual cost: 1. Transportation and living expenses, including long distance calls. 2. Printing, reproduction, postage and handling of reports and documents. We estimate the reimbursable expenses for airfare, ground transportation, meals, and housing for two (2) site visits, plus printing and production materials to be approximately nine hundred dollars ($900) depending upon airfares and advanced booking arrangements. The costs cited do not include the cost of site analysis, schematic drawings, or opinions of probable construction costs prepared by architects and engineers in Phase 1. We can supply these services as a part of the total fee, or we can wark with archiiects and engineers contracted by the City. Changes and Additionai Work For additional work or changes in scope, we will provide the services of our staff at our per- hour rates plus reimbursable expenses, if applicable. Principal Consultant $200.00/hour Assistant Consultant $85.00/hour Word/Clerical $45.00/hour �JSR,NV Invoicing Procedures Invoices for our services will be submitted every thirty (30) days. Payments against our invoices will be expected within thirty (30) days from receipt of invoice. Invoices for reimbursable expenses will be submitted at the same time when incurred during the invoicing period. Deposit to Validate the Agreement JRV will not require a deposit to start the work on this project. Project Schedule I We can begin work on this project within one week of receiving your written authorization to proceed. We will begin setting up meeting dates and coordinating deliverables. Termination of Agrecment ln the event the agreement is terminated, we request fourteen (14) days written notice and reimbursement for all services performed and costs incurred up to the termination date plus reimbursable expenses. JRV Consulting, inc. has the experience and resources to successfully complete this project, and we would appreciate the opportunity to be of service. If you have any questions regarding our proposal, or wish to discuss any aspect of the project, please call me at (937) 435-1831 office. Sineerely, (� .-`� 1' / `` - z�G� �/,2c-^C,ti�.�- � �k Vivian, Ph.D. President . • JRV Cons�elting, Inc. Proposal for Professional Services ' To Michael C Duffy, AICP Director of Community llevelopment 2950 NW Vivion Road Riverside, Missouri 64150 Acceptance If this proposal meets with your approval, please indicate your authorization to proceed by signing this acceptance and returning a copy to us. Should this proposal not be accepted within 60 days from the date of proposal, JRV Consulting, Inc. reserves the right to review and update this proposal. Accepted by Name m i Gna� � l, .�t� � u Title }�,re�Dk. a�T l�m.n�✓�rI4�V, Date S - 3 - �A // Purchase Order No. N� A. � (if applicable) I 5 ' � Robin Littrell To: John Kennedy Subject: RE: Proposal f�r Professional Services From: John Kennedy [mailto:iohnkCa�jrvconsulting com] Sent: Tuesday, April 10, 2012 4:17 PM To: Robin Littrell Cc: Jack Vivian Subject: Proposal for Professional Services Robin, Attached is the signed proposal for Professional Services submitted by JRV Consulting last year. Please let Jack Vivian or me know if there is anything else you need. Sincerely, ,lohn Kennedy Director of Facility Plarmin� JRV Consulting (313) 456-9000 e� 304 (724) 875_9081 cell �ohnk cLjrvconsultinQ.com ;! ,� � �� '�,.., �. � , . , i