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HomeMy WebLinkAboutResolution - 4834 - Agreement - Market Research Services - Nammack Associates Inc - 05/11/1995Resolution No. 4834 May 11, 1995 Item #33 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement for Market Research Services by and between the City of Lubbock and Nammack Associates, Inc., attached hereto, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this ATTEST: )'t�) Betty Johnson, City Secretary APPROVED AS TO CONTENT: r Marl€ llarle, Aviation­—M—a—n—ager- Dbliald G Vandiver, First distant City Attorney DGV:da ccdocsla-nammck.res May 2, 1995 Resolution No. 4834 May 11, 1995 Item #33 THE STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK AGREEMENT FOR MARKET RESEARCH SERVICES THIS AGREEMENT is made and entered into this 11th day of May , 1995, by and between the CITY OF LUBBOCK, TEXAS, a home rule municipality, hereinafter referred to as the "City," and NAMMACK ASSOCIATES, INC., of 5043-B Backlick Road, Annandale, Virginia, hereinafter referred to as the "Contractor." WITNESSETH: THAT for and in consideration of the terms, covenants and conditions contained herein, City and Contractor agree as follows: I. Contractor will provide market research services for the Lubbock International Airport, hereinafter called the "Airport," in accordance with the Specifications and Methodology outlined in EXHIBIT A attached hereto and incorporated herein as part of this Agreement. Such research will be conducted in a professional and workmanlike manner consistent with industry guidelines for this type of research and will focus on the following areas of interest for the Airport, to wit: Air Service, Market Base, Economic Development and Tourism Enhancement. II. In consideration for providing the market research services described in EXHIBIT A, City agrees to pay Contractor the sum of THIRTY-FIVE THOUSAND FIVE HUNDRED AND NO/100 DOLLARS ($35,500). Contractor shall send the City's Aviation Manager itemized invoices monthly which indicate the amount of work completed and delivered to him. All such properly submitted invoices will be paid within thirty (30) days unless the Aviation Manager notifies the Contractor in writing of any amounts he believes have been improperly billed to the City. The term of this Agreement shall be six (f) months commencing on the 11th day of May , 1995, and ending on the 11 th day of November , 1995, and Contractor agrees to complete all of the research services described in EXHIBIT A during this term. IV. Contractor will be solely responsible for the accuracy of the work performed and shall perform such work without unnecessarily interfering with Airport operations. V. Contractor shall be solely responsible for any travel and other expenses it incurs in performing this Agreement and City shall have no responsibility or obligation to reimburse Contractor for the same. Contractor shall also provide at its own expense all supplies necessary to perform the research services specified in EXHIBIT A. VI. All reports, analyses, records and compilations of data of whatsoever kind which Contractor creates in performing this Agreement shall become and remain the property of the City and may be subsequently utilized or disposed of as the City chooses. Contractor is and, at all times during the performance of this Agreement, shall remain an independent contractor, with full, complete and exclusive power and authority to direct, supervise and control its own employees and any rights the City may have hereunder are not intended and shall not at any time change or affect the company's status as an independent contractor. The Contractor will indemnify, save harmless and exempt the City, its officers, agents, servants and employees from and against any and all suits, actions, legal proceedings, claims, demands, damages, costs, expenses and attorneys' fees incident to any work done in the performance of this Contract arising out of a willful or negligent act or omission of the Contractor, its officers, agents, servants or employees; provided, however, that the Contractor shall not be liable for any suits, actions, legal proceedings, claims, demands, damages, costs, expenses and attorneys' fees arising out of a willful or negligent act or omission of the City, its officers, agents, servants or employees, or third parties. IX. Contractor shall not assign all or any portion of this Agreement and shall not subcontract any of the work described herein without the written permission of the Aviation Manager of City. AGREEMENT FOR MARKET RESEARCH SERVICES-- Page ? NAMMACK ASSOCIATES, INC. EXHIBIT A SpecificatiQns and Methodology f r Lubbock International Airport Research Services A. Air Service 1. Route Profitability and Feasibility Analysis This data shall include an analysis of airline companies, routes served, aircraft equipment used both presently and potentially, and projections of growth markets or new markets that could be profitably served (with the proper mix of airline system, aircraft and marketing) from the Lubbock area. Contractor will analyze the City's air services and passenger demand (both historic and current) for those services and determine what markets are currently being under -served. Based on this analysis, Contractor will determine which of the City's air service markets could feasibly support new or additional air services and target specific airlines most capable of fulfilling the City's air service needs. After consulting with the City's Aviation Manager, the Contractor will then select and develop three (3) Route Profitability Studies (Service Proposals) identifying in each Proposal a specific routing, aircraft type and frequency. Finally, Contractor will develop a profit/loss analysis on the proposed service. Upon completion of the Service Proposals, Contractor will assist City representatives in presenting the Contractor's analysis at the headquarters of one (1) of the air carriers selected by the City's Aviation Manager. 2. Airline Company Analysis This analysis shall include a detailed study of corporate philosophy and capabilities of the airline companies presently serving the Lubbock market as well as companies that have a potential for entering this market. In preparing this analysis, Contractor shall draw upon its years of experience in making presentations before all of the major carriers and most of the regional carriers in the United States as well as the company's daily involvement in matters affecting the aviation industry. B. Market Base Passenger Demographic Analysis This data shall provide a detailed study of both enplaning and deplaning passengers at the Airport to include, but not be limited to, information relating to the age, income, educational background, gender and race of such passengers, why they chose the Airport, and what are their likes and dislikes about the Airport. Contractor will select for analysis approximately 400 passengers from various arriving and departing flights. Data concerning present and future travel patterns as well as airline passenger desires regarding services and facilities will be collected, assembled and reported. C. Economic Development NAFTA Impact and Opportunities This study shall analyze the potential impact and opportunities for the Airport that are presented by the implementation of NAFTA policies.. Contractor will examine and report on how NAFTA may impact and what opportunities may arise for the Airport as a result of that impact by documenting NAFTA's effects on other Texas cities and airports. Contractor will also identify and provide the City with a list of U.S. companies doing business in Mexico and Mexican companies doing business in the U.S. --- particularly in Texas --- by contacting various local, state and national agencies. 2. Aviation Industry Opportunities This study shall focus on all aspects of the aviation industry and suggest target companies in this industry that have potential for expansion or relocation into the Lubbock area and names of persons to contact within those target companies. Such companies might include, for example, engine manufacturers and retrofitters, airframe manufacturers, interior retrofitters and ramp equipment manufacturers or distributors. Contractor will identify as target companies those aviation companies which have the potential to expand into the Southwest region (i.e. those companies that are experiencing higher levels of growth, or which are in need of additional facilities such as maintenance, CRS and personnel training operations). Contractor will also be alert to the possibility of attracting non -aeronautical enterprises to the Airport. EXHIBIT A -- Research Services Page 2 D. Inbound Traveler and Tourism Analysis Potential High -Yield Markets This study shall include an analysis of potential visitor markets for the Lubbock area both for business or pleasure, both domestic and international, and with an emphasis on air travel. Contractor shall identify potential high -yield markets for Lubbock through discussions with Lubbock area tourism, convention and economic development entities and by becoming familiar with the area's tourism history, main attractions and current traffic by both U.S. and foreign visitors. Contract will also work closely with the U.S. Department of Commerce's U.S. Travel & Tourism Administration in Washington D.C. and will employ the Department's in-flight surveys of foreign visitors to the U.S. along with Immigration & Naturalization Service data to determine Lubbock's priority international markets and sources of visitors. Contractor will assist the Airport staff in developing promotional materials for use in meetings with wholesale tour operators, U.S. and foreign -flag airlines, including charter carriers. 2. Outreach Strategy for Air Tourists & International and Domestic Tourism Attraction Analysis This study shall suggest and evaluate recommended methods to attract tourists to the Lubbock market (both domestic and international) with emphasis on air travel. It must identify foreign markets with interests in Texas and locations or contacts for reaching those markets. This study shall also analyze the existing attractions that will entice air travelers to the Lubbock area and suggest enhancements to existing attractions or other new attractions that should be considered with the attraction of the air visitor in mind. Contractor will conduct a limited national survey of meeting planners, as well as several based in Mexico and Latin America, in an effort to identify possible business attractions to the Lubbock area. Contractor will conduct about 100 telephone interviews and also interview chamber of commerce, convention and economic development representatives to help identify potential target businesses, investors and airlines for development of marketing packages. HW:da cityattlharo l&ea-rsrch.doc April 3, 1995 EXHIBIT A -- Research Services Page 3 0 This Agreement is made and shall be construed in accordance with the laws of the State of Texas. IN WITNESS WHEREOF, the parties to these presents have executed this in the year and day first above written. ATTEST: &7tt— J), rl�L betty M.Johnsofi, City Secretary APPROVED AS TO CONTENT: Mar arle, Aviation Manager APPROVED AS TO FO QC no ald G. Vandiver, First Assistant City Attorney HW:da city attlharoldla-resrch.doc April 19, 1995 NAMMACK ASSOCIATES, INC. BY, JO A. NA PkESIDENT ATTEST: AGREEMENT FOR MARKET RESEARCH SERVICES-- Page 3 NAMMACK ASSOCIATES, INC.