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,
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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
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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.
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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
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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:
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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.
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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?
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• 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.
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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.
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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.
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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.
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