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HomeMy WebLinkAboutPROFESSIONAL SERVICES AGREEMENT RKG ASSOCIATES INC FOR MARKET ANALYSIS SERVICES PROFESSIONAL SERVICES AGREEMENT BETWEEN AUGUSTA, GEORGIA AND RKG ASSOCIATES, INC. FOR MARKET ANALYSIS SERVICES This Agreement is made and entered into this 30th day of August, 2010, by and between Augusta, Georgia, by and through the Augusta - Richmond County Commission, (hereinafter referred to as "Grantee "), and RKG Associates, Inc., (hereinafter referred to as the "Consultant "). WITNESSETH WHEREAS, the Grantee is undertaking certain activities related to the revitalization of neighborhoods; and WHEREAS, the Grantee desires to engage the Consultant for the purpose of providing a housing and retail market analysis study of the Laney - Walker and Bethlehem neighborhoods; and NOW, THEREFORE, the parties hereto do mutually agree as follows: 1. EMPLOYMENT OF CONSULTANT. Grantee agrees to engage the Consultant, and the Consultant agrees to provide consultant services by preparing a Detailed Retail Market Analysis (as described in Appendix A) for the Laney - Walker /Bethlehem neighborhoods. 2. SCOPE OF SERVICES. The Consultant will provide the "Services" set forth in Appendix A, attached hereto and incorporated herein by reference. It is understood and agreed by the parties that the services of the Consultant do not include any of the following: the disbursement or account of funds distributed by the Grantee's financial officer, legal advice, fiscal audits or assistance with activities not related to this project. 3. LIAISON. The Grantee's designated liaison with the Consultant is Chester A. Wheeler, III, Director of the Augusta Housing and Community Development Department. The Consultant's designated liaison with the Grantee is Russell A. Archambault. 4. EFFECTIVE DATE AND TIME OF PERFORMANCE. This Contract takes effect on September 1, 2010. The services to be performed by the Consultant will be completed no later than November 30, 2010. 5. COMPENSATION. For the satisfactory completion of the services to be provided under this Contract, the Grantee will pay the Consultant a sum not to exceed Twenty thousand Dollars and no cents ($23,000), which the Grantee agrees to pay as set forth in "Appendix B - Compensation /Budget ", attached hereto and incorporated herein by reference. Compensation for services will be provided in installments, based on submitted and completed deliverables as outlined in Appendix A and will not exceed $20,000. The Consultant will be reimbursed up to $3,000 for all project and travel related expenses. Actual travel expenses not to exceed $3,000.00 will be RKG Associates, Inc. Market Analysis Agreement reimbursed on an actual cost basis with proof of receipts to be included with the invoice. All travel is to follow GSA per diem guidelines. The Consultant shall submit requests for payment based on deliverable(s) completed (as defined in Appendix A and B). Each invoice must be accompanied by an itemized invoice describing the service(s) furnished, the deliverable produced, and a description of any other eligible expenses incurred during the billing period. 6. INDEPENDENT CONTRACTOR. It is understood by the parties hereto that the Consultant is an independent contractor and as such, neither it nor its employees, if any, are employees of the Grantee for purposes of tax, retirement system, or social security (FICA) withholding. It is further understood that the Consultant will maintain at its expense for the duration of this Contract, coverage in a workers' compensation plan for its principles and employees for the services to be performed hereunder. 7. ELIGIBILITY. The Consultant certifies that the Consultant's firm and the firm's principals are not debarred, suspended, voluntarily excluded, or otherwise ineligible for participation in federally assisted contracts under Executive Order 12549; "Debarment and Suspension" [24 CFR 24.505]. 8. CONFLICT OF INTEREST. The Consultant covenants that it presently has no interest and will not acquire any interest, direct or indirect, in the project that would conflict in any manner or degree with the performance of its services hereunder. The Consultant further covenants that, in performing this Contract, it will employ no person who has any such interest. 9. ENTIRE AGREEMENT: MODIFICATION. This Contract contains the entire agreement between the parties, and no statements, promises or inducements made by either party, or agents of either party, that are not contained in the written Contract, are valid or binding. No changes, amendments or alterations shall be effective unless in writing and signed by both parties. The Consultant specifically acknowledges that in entering into and executing this agreement, Consultant relies solely upon the provisions contained in this agreement and not others. 10. NONASSIGNMENT OF AGREEMENT. Inasmuch as this agreement is intended to secure the specialized services of the Consultant, Consultant may not assign its rights, including the right to compensation, transfer, delegate or subcontract any interest herein without the prior written consent of Grantee. Any subcontractor or assignee will be bound by all the terms and conditions of this contract. 11. ASSIGNMENT OF PERSONNEL. The Consultant shall not substitute any personnel for those specifically named in its proposal unless personnel with substantially equal or better qualifications and experience are provided and acceptable to Grantee, as is evidence in writing. 12. INDEMNIFICATION. The Consultant waives any and all claims and recourse against the Grantee, including the right of contribution for loss and damage to persons or property arising from, growing out of, or in any way connected with or incidental to the Consultant's performance of this contract. Further, the Consultant will indemnify, hold harmless, and defend the Grantee against any and all claims, Page 2 of 12 RKG Associates, Inc. Market Analysis Agreement demands, damages, costs, expenses, liability arising out of the Consultant's performance of this Contract except for liability arising out of the concurrent or sole negligence of the Grantee or its officers, agents or employees. Consultant shall also indemnify Grantee for any adverse determination made by the Internal Revenue Service or the State Franchise Tax Board against the Grantee with respect to Consultant's `independent contractor' status that would establish a liability for failure to make any social security or income tax withholding payments. 13. INSURANCE. Consultant shall have and maintain in full force and effect for the duration of this Agreement, insurance insuring against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work by Consultant, its agents, representatives, employees, or sub - consultants. 14. BREACH OF CONTRACT. In the event of breach of Contract by the Consultant, the Grantee may at its option, engage the services of another Consultant to complete the work and deduct the cost of the completion from the amount due to the Consultant. In the event either the Grantee or the Consultant do not fulfill performance under this agreement, then the affected party may pursue all legal remedies available for breach of contract. 15. TERMINATION OF CONTRACT. This Contract may be terminated as follows: (a) Termination for cause. (i) If the Grantee determines that the Consultant has failed to comply with the terms and conditions of the Contract, it may terminate this Contract in whole or in part any time before the date of completion. If the Consultant fails to comply with any of the terms and conditions of this Contract, the Grantee may give notice, in writing, to the Consultant of any or all deficiencies claimed. The notice will be sufficient for all purposes if it describes the default in general terms. If all defaults are not cured and corrected within a reasonable period to be specified in the notice, the Grantee may, with no further notice, declare this Contract to be terminated. The Consultant will thereafter be entitled to receive payment for those services reasonably performed to the date of termination, less the amount of reasonable damage suffered by the Grantee by reason of the Consultant's failure to comply with this Contract. (ii) Notwithstanding the above, the Consultant is not relieved of liability to the Grantee for damages sustained by the Grantee by virtue of any breach of this Contract by the Consultant, and the Grantee may withhold any payments to the Contractor for purposes of setoff until such time as the exact amount of damages due the Grantee from the Consultant is determined. (iii) Grantee may terminate this contract should funding cease or be materially decreased. 16. LEGAL FEES. In the event either party incurs legal expenses to enforce the terms and conditions of this Contract, the prevailing party is entitled to recover reasonable Page 3 of 12 RKG Associates, Inc. Market Analysis Agreement attorney's fees and other costs and expenses, whether the same are incurred with or without suit. 17. DOCUMENTS INCORPORATED BY REFERENCE. The Consultant's Request for Qualifications for preparation of a market analysis study of the Laney- Walker/ Bethlehem neighborhoods, submitted September 3, 2008, and all applicable federal and state statutes and regulations incorporated into this Contract by this reference are binding upon the Consultant. 18. NONDISCRIMINATION. The Consultant will not discriminate against any employee or applicant for employment on the basis of race, color, religion, creed, political ideas, gender, age, marital status, physical or mental disability, or national origin. 19. OWNERSHIP AND PUBLICATION OF MATERIALS. All reports, information, data, and other materials prepared by the Consultant pursuant to this contract are to be the property of the Grantee, which have nonexclusive and unrestricted authority to release, publish or otherwise use, in whole or in part, information relating thereto. Any reuse without written verification or adaptation by Consultant for the specific purpose intended will be at the Owner's sole risk and without liability or legal exposure to the Consultant. No material produced in whole or in part under this Contract may be subject to copyright or patent in the United States or in any other country without the prior written permission of the Grantee. 20. REPORTS AND INFORMATION. The Consultant will maintain accounts and records, including personnel, property and financial records, which are adequate to identify and account for all costs pertaining to this Contract; and such other records as may be deemed necessary by the Grantee to assure proper accounting for all project funds, both federal and non - federal shares. These records will be made available for audit purposes to the Grantee or its authorized representative, and will be retained by the Consultant for five (5) years after the expiration of this Contract, unless permission to destroy them is granted by the Grantee. The Consultant, at such times and in such forms as the Grantee may require, shall furnish Grantee monthly progress reports in accordance with the outline indicated in Appendix C. Progress reports shall be submitted by the 15th day of each month for prior month activities. 21. ACCESS TO RECORDS. It is expressly understood that the Consultant records relating to this Contract will be available during normal business hours for inspection by the Grantee. 22. AUGUSTA- RICHMOND COUNTY, GEORGIA DOES NOT OPERATE A DBE, MBE OR WBE PROGRAM, BUT RATHER PURSUANT TO ITS CODE OF ORDINANCES, THIS LOCAL GOVERNMENT OPERATES INSTEAD A LOCAL SMALL BUSINESS OPPORTUNITY PROGRAM. Page 4 of 12 RKG Associates, Inc. Market Analysis Agreement IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date first written above. ATTEST: AUGUSTA, GEORGIA (Grantee) 0 /1 SEAL By: David S openhaver ■ / j As its Mayor e f/ 3 //17 Aid "filth Lena ' .: onner Clerk of Commission � ,l Frederick L. Russel City Administrator � 1 Chester A. Wheeler, III, Director Augusta Housing & Community Development Dept. ATTEST: RKG ASSOCIATES, INC. (Consultant) 7- E_D BY: ' . Russell A. Archambault As its Vice President and Principal Page 5 of 12 RKG Associates, Inc. Market Analysis Agreement APPENDIX A SCOPE OF SERVICES The Consultant will be responsible for preparation of a detailed Retail and Services market Analysis for the Laney Walker/Bethlehem Revitalization area. The Scope of this effort and deliverables are stated below: TASK l: PROJECT KICKOFF MEETING RKG Associates will hold an initial kickoff meeting with the Augusta Housing & Community Development Department to enhance our understanding about recent, current and proposed development projects that have or will occur since we completed our Laney Walker residential market analysis. The kickoff meeting will serve as an opportunity for RKG and the Client to discuss project particulars that will require additional analysis and come to an agreement on the project timeline and deliverables. Prior to the kickoff meeting, RKG will submit a list of data needs to the Client for the completion of the analysis including, but not limited to, development project details and key stakeholder contact information. It is anticipated that the Client will have this information available to RKG prior to, or at, the kickoff meeting. While in Augusta for the project kickoff meeting, RKG will hold a series of in- person interviews with key individuals with knowledge of the City of Augusta; recent retail /service market activity in the region, city and the general area surrounding the Wrightsboro Road corridor. These interviews will focus on identifying any recent trends that have influenced the local retail/service market over the past few years and obtain informed opinions about the short-term market prospects. Deliverable 1: Results of Kick -Off Meeting/Interviews and Proposed Project Schedule Prepare and deliver within 15 business days after on -site kick -off meeting, a document that summarized the on -site visit, all interviews and provides a schedule for delivering Deliverables 2, 3, and 4. This schedule should reflect a 45- day time period for completing the effort. The Final Retail /Services Market Analysis and Final Implementation Plan shall be delivered no later than November 30, 2010. TASK 2: RETAIL MARKET ANALYSIS RKG Associates will prepare a detailed Retail /Services Market Analysis, and will expand its earlier retail market analysis to include specific street intersections. The analysis will include the following tasks: Page 6 of 12 RKG Associates, Inc. Market Analysis Agreement Task 2.1 Demand -Side Analysis First, RKG Associates will examine the community's ability to support the development of new retail venues in the general study area. We will perform an in -field analysis to determine if the Primary (PTA) and Secondary Trade Area (STA) boundaries for up to five areas served by the Wrightsboro Road corridor. It is our understanding that there are at least three main intersections that are of interest to the client and potential developers. Those intersections include: • Wrightsboro Road/12thStreet • R.A. Dent Boulevard/Wrightsboro Road • James Brown Boulevard/Wrightsboro Road Once the final submarket area boundaries are approved by the Client, RKG will complete the demand -side analysis, which will include consumer spending projections based on the latest secondary source data on population and households, employment, income and spending potential trends and projections that make up the demand for local retail goods and services. Because of the on -going expansion of the Medical College of Georgia and the ancillary demand created from employees at MCG Heath Medical Center and University Hospital, the potential retail and service demand will extend beyond the needs of local households. In addition, the analysis will include projections based on future growth in the surrounding neighborhoods. The City of Augusta is aggressively addressing neighborhood redevelopment opportunities in the Laney Walker/Bethlehem neighborhoods and this will undoubtedly yield an increase in new housing units over time. Future projections will assume some level of growth in the future. Other development interests are exploring additional redevelopment in adjacent neighborhoods that could impact future demand for goods and services. RKG will assess each of the intersections identified above and will prescribe a range of commercial uses that could be supported at one or more of these locations. It should be noted, however, that given the close proximity of these intersections, it may not be possible to achieve commercial development at all three locations. We will rely on a variety of data sources to complete this study such as: RKG field research, U.S. Census of Population, U.S. Census of Retail Trade, ESRI, Claritas, Inc., and other secondary data vendors. This effort will reveal the historic demographic and economic trends that define the current market potential to encourage growth of existing businesses and/or attract new businesses into the community. Note: RKG Associates will account for the fact that traditional proprietary data sources typically under estimate the household spending potential of transitional neighborhoods. A share of consumer dollars are spent, but are not captured and tracked as sales by national data firms. This is because a percentage of retail and service transactions occur at non - traditional establishments that do not report their sales. As such, RKG adjusts its projections to capture these lost sales, which contribute to overall demand. Page 7 of 12 RKG Associates, Inc. Market Analysis Agreement Task 2.2 Existing Supply -Side Analysis RKG Associates will also complete a supply -side analysis, which documents the competitive supply of retail and service establishments already serving the adjacent neighborhoods and downtown area. RKG will prepare an inventory of existing retail and service businesses serving the neighborhoods, particularly in those neighborhood submarkets identified by various intersections with Wrightsboro Road. As part of this effort, RKG will interview real estate professionals with knowledge of recent commercial development/redevelopment projects in this area of the City. In addition to the documenting the existing retail /service supply, RKG will reassess the competitive commercial market and identify potential gaps that are causing the local population to be underserved. This is quite often the case in lower income neighborhoods, where retail establishment are located outside neighborhoods, but within proximity of local households. This makes day -to -day shopping activities more difficult for underserved households; RKG will look for opportunities to attract local retail and service businesses. Task 2.3 Project - Specific Impacts In addition to the traditional retail market assessment, RKG will analyze the potential for certain planned or proposed developments to support new commercial development. • Beaulah Grove Baptist Church — It is RKG's understanding that Beaulah Grove Baptist Church, control a number of properties within the general study area. The church's pastor, Rev. Dr. Sam Davis, is interested in undertaking a commercial development on a share of church property that would serve the adjacent neighborhoods. RKG will meet with church representatives to understand their development plans and to incorporate their plans into the retail /services market study. • Other Development Proposals — The City of Augusta is currently working a number of project opportunities with private developers. To the extent that these developments could come to fruition and add new households to the area or increase the demand for retail goods and services, RKG will include these projects into its future projections. Task 2.4 Commercial Market Analysis: Sales Potential, Leakage Analysis and Lease, Vacancy and Absorption Rates Utilizing the data analyzed above, RKG Associates will determine the amount of retail and service square footage the local market will be able to support upon completion of all future expansion and development projects. This research will provide data on lease rates (current and projected), Vacancy rates (current and projected) and absorption rates (current and projected. Fundamental questions to be answered include: • How big is the greater Wrightsboro Road commercial market; now and in the future? • Are adjacent neighborhoods underserved or over served by retail goods and services and buy how much and in what merchandise categories? Page 8 of 12 • RKG Associates, Inc. Market Analysis Agreement • How will new commercial development impact existing businesses currently serving the nearby neighborhoods? • What risks are associated with commercial space in the designated areas? RKG Associates will identify products and services with unmet sales potential, or where such spending potential is "leaking" (dollars being spent by the local customer base in non -local establishments) to other commercial venues outside the immediate area. The results of this analysis, in conjunction with interview findings, will identify the retail /service market opportunities for business expansion and/or recruitment within the Wrightsboro Road area. RKG will be able to provide an order of magnitude estimate of market potential within each retail category. Deliverable 2: Draft Retail/Services Market Analysis The deliverable for these three tasks will be the Draft Retail /Services Market Analysis. This will include a written analysis of the local and regional retail market climate, an overview of the demographic /economic characteristics, which define the trade area and customer base, and a retail market analysis that identifies potential opportunities for new retail /service operations in the study area. It is important to note that current economic conditions have adversely impacted the retail industry throughout the United States since our last study. The analysis will take recent events into consideration, as they will influence short-term investment decisions. However, RKG Associates will also take a longer -term perspective and provide the Client with recommendations on how to prepare for the economic recovery, particularly as it pertains to retail supply and demand. The draft deliverable will be delivered by October 29, 2010 for preliminary review. Deliverable 3: Final Retail/Services Market Analysis RKG will incorporate changes from the review period of the draft Retail /Services Market Analysis. The final copy of the Retail /Services Market Analysis will be provided by November 30, 2010. RKG Associates will provide the document as well as a .PDF file. TASK 3: IMPLEMENTATION STRATEGY Once the statistical and outreach analyses are completed, RKG Associates will prepare an implementation strategy to guide the City of Augusta in improving the local retail market and attracting new retail investment. The implementation strategy will offer viable recommendations that are grounded in market realities while addressing the needs and desires identified by the Client, and corroborated through independent market research. These recommendations, or action steps, are presented under their respective goals and objectives. They are then ordered into a logical progression of short-, mid- and long -term efforts, providing a linear set of accomplishments that build upon each other to provide for the greatest chances of success. Page 9 of 12 RKG Associates, Inc. Market Analysis Agreement Deliverable 4: Implementation Strategy RKG will provide an Implementation Strategy that correlates to the information found in the Retail /Services Market Analysis. This Implementation strategy is to be provided by November 30, 2010. This document will be delivered in hardcopy and electronically. A draft of the Implementation Plan will be delivered by November 8, 2010 for review. The final copy will be delivered by November 30, 2010. CLIENT MEETINGS RKG Associates proposes two in- person Client meetings in addition to the project kickoff. The first meeting will be held at the completion of the market assessment to provide the Client an update on the findings thus far. This meeting will allow the City to react to the initial research and identify areas where additional clarification needs to be provided. The final meeting will include a final presentation to the Housing & Community Development Department staff, presenting the completed assessment and the proposed implementation strategy /recommended action items. A conference call meeting should . be held prior to the final presentation trip to present the draft action strategies prior to finalization of the project. These meetings are included in the scope of the project and are included in the fee of $20,000.00. COST PROPOSAL RKG Associates will complete the above scope of services for $23,000 that will be inclusive of all actual, reimbursable expenses. All travel will follow GSA acceptable expense guidelines and expenses will be reimbursed on an actual cost basis, supported by expense receipts. The fees and deliverables for this project are stated in Appendix B. PROJECT SCHEDULE AND MANAGEMENT As part of Deliverable 1, RKG will provide a detailed project schedule. This schedule will reflect due dates for major activities and the four deliverables defined in Appendix A. . Kyle Talente, Vice President and Principal of RKG Associates will manage the project, since he was project manager on the 2008 -09 residential market study, and he will be assisted by Mr. Sean Pink of our staff. I will serve as project advisor and will review all RKG products before they are delivered to the Client. I will also work with the Pastor of Beaulah Grove Baptist Church to understand their commercial development plans. Page 10 of 12 i RLG Associates, Inc. Market Analysis Agreement APPENDIX B COMPENSATION /BUDGET Consultant requests for payment may be submitted after the completion and submission of each deliverable as outlined below. Each invoice must be accompanied by a written status report which adequately describes and documents the work performed, copy of the deliverable and actual receipts for all travel. All travel will be according to accepted GSA guidelines and per diem rates for Augusta, Ga. The total contract is not to exceed $23,000 for both services and projects related costs, including travel. Total payments for the services rendered under this Contract will not exceed $2o,000; travel related expenses will be,exclusive of the $20,000 and shall not exceed $3,000. Compensation for services will be provided in installments and will be based on actual work performed along with other reimbursable costs. Payment will be based upon completion of key components of the project and can be divided into three payments. The last payment will be paid after the final Retail /Services and Market Analysis Deliverable and Implementation Plan have been accepted and approved from AHCDD. Payments can be submitted as follows: Payment 1: September 30, 2010 $ 7,000.00 Payment 2: October 29, 2010 $ 10,000.00 Payment 3: November 30, 2010 - Final Invoice (Upon Approval $ 3,000.00 of final Retail /Market Analysis and Implementation Plan *Actual Travel Expenses to be billed when incurred: $ 3,000.00 TOTAL BUDGET $ 23,000.00 *Actual travel expenses are not to exceed $3,000.00. All travel will be reimbursed on an actual basis and all receipts need to be provided with invoice. All travel shall follow GSA per diem standards for Augusta, Ga. Page 11 of 12 PKG Associates, Inc. Market Analysis Agreement APPENDIX C MONTHLY PROGRESS REPORT FOR MONTH OF: (Due: 15th day of each month for prior month activities. ) CONSULTANT: RKG ASSOCIATES, INC. Address: Contact Person: Phone #: Project Name: Market Analysis Study for Laney - Walker /Bethlehem Revitalization Project PART I. ACTIVITY STATUS FOR MONTH - Describe Progress Achieved in Accomplishing Project Goals and Objectives during this reporting period. Page 12 of 12