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HomeMy WebLinkAboutResolution - 5115 - Services Agreement-Comprehensive Reuse Plan-Reese AFB - 02/22/1996Resolution No. 5115 February 22, 1996 Item 432 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 a Services Agreement by and between the City of Lubbock and The Pathfinders, attached herewith, with regard to creation of a Comprehensive Reuse Plan for Reese AFB and all associated documents, which Agreement 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. However, the Mayor shall not execute this Resolution unless and until such time as the City of Lubbock's request for a grant amendment to increase funding under the City's grant from the Federal Office of Economic Adjustment is approved by the OEA. Passed by the City Council this 22nd day of February , 1996. ATTEST: Betty ivy 7ohnso#/, City Secretary APPROVED AS TO CONTENT: J in rtram, Director of Strategic n APPROVED AS TO FORM: Donald G. Vandiver, First Assistant City Attorney DGV:vllccdocsla-Pathfr, res February 15, 1996 RESOLUTION NO.5115 STATE OF TEXAS SERVICES AGREEMENT: COUNTY OF LUBBOCK WHEREAS, the City of Lubbock, Texas, has heretofore solicited proposals for the performance of the following described services: COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE and; WHEREAS, the proposal submitted by The Pathfinders, has been selected as the best proposal, and, WHEREAS, the City of Lubbock and The Pathfinders, desire to enter into an agreement with regard to the proposal to perform the services solicited by Request for Proposals No. 13405; NOW THEREFORE: WITNESSETH This Agreement is made and entered into this 9th day of May, 1996, by and between the City of Lubbock, "City", and The Pathfinders, "Proposer". The parties to this Agreement hereby agree as follows: 1) The Proposer shall perform such duties as are provided for in RFP NO. 13405 and any addendums thereto and by its Proposal submitted in response thereto. The RFP and the Proposal are hereby incorporated in this document by reference and are made a part hereof for all intents and purposes in Attachment A. 2) In the event of a conflict between the RFP and the Proposal, and this Agreement, then this Agreement and its Pricing Schedule shall be controlling. 3) The City reserves the right to renegotiate any and all terms of this contract not already completed by the Proposer upon the completion of Phase I of the Proposal. 4) The Proposer and City hereby agree to the Cost Schedule attached hereto as Attachment B attached hereto and incorporated in this document by reference and made as part hereof for all intents and purposes. The Cost Schedule includes the transfer of Task 1.1.13 "Zoning, Parcelization, and Platting" from Phase I to Phase R and such task is to be performed as part of Phase H. 4.1) Lump Sum Payment Schedule and Contract: This is a lump sum payment schedule and contract for Phase I and Phase II of this project. The fee for Phase I is $233,727.00. The fee for Phase H is $158,797.00, payable according to the "Payment Schedule" as described in Attachment C which is attached hereto and incorporated in this document by reference and made a part hereof for all intents and purposes. 42) Expenses: Project expenses shall be billed on a monthly basis as described in Attachment C. All invoices for project expenses will be in a format acceptable to the City. Expenses for Phase I will not exceed $21,500.00, and expenses for Phase II will not exceed $13,600.00. The City, at its discretion, may approve the allocation of expenses from one Phase to the other as such reallocation is deemed to be of benefit to the project. Nevertheless, total expenses for both phases shall not exceed $35,100.00 unless authorized in writing by the City. 4.3) This project is to be conducted in two phases. Phase I and Phase II are described separately in the Attachments. Phase I work is authorized by the execution of this Agreement, and Phase II will be authorized by a letter to the Proposer from the City if the City elects at its sole option to proceed with Phase II. 4.4) Commencement Date and Completion Date: Performance of the Phase I services may begin on May 9, 1996 (hereinafter referred to as the "Phase I Commencement Date"), and all Phase I services shall be completed in their entirety by September 9, 1996 (hereinafter referred to as the "Phase I Completion Date"), unless it is mutually agreed by the City and Proposer that extending the completion date will benefit the project. Phase H services shall commence following Phase I if and when authorized in writing by the City and shall be completed within 120 days of such authorization. 4.5) The City and the Proposer agree that payments will be made to the Proposer as specified in the "Payment Schedule", Attachment C. 5) The Proposer hereby agrees to keep and maintain in force such insurance and/or bonds as are required by the RFP. 6) This Agreement shall be governed by the laws of the State of Texas effective and in force at the date of execution of this Agreement. 7) If during the term of this contract, the City requires additional services from the Proposer, the Proposer shall submit necessary documentation and rate schedules appropriate to accomplish such additional services. Upon approval of such documentation and rate schedules, the City may require the Proposer to perform such additional services. 8) The Proposer shall clearly mark all materials which it provides the City that it considers to be a trade secret or commercial or financial information that is privileged or confidential by statute or judicial decision. The City will honor such designation and will decline to release such information initially. However, please note that the final determination of whether such information is in fact a trade secret or commercial or financial information that may be withheld from public inspection will be determined by the Texas Attorney General or a court of competent jurisdiction. In the event a public information request is received for matters that you have marked as confidential, you will be notified of such request and you will be required to justify your legal position in writing to the Texas Attorney General pursuant to Section 552.305 of the Government Code. In the event that it is determined by opinion or order of the Texas Attorney General or a court of competent jurisdiction that the information is in fact not privileged and confidential, then such information will be made available to the requester. 9) This Agreement may be terminated unilaterally by the City upon ten (10) days notice or by either party for default of the other party. However, in the event of such termination, the Proposer shall be entitled to payment for all services rendered to the satisfaction of the City up to the time of receipt of the notification of termination. 10) Proposer shall be an independent contractor and shall have the sole right and authority to direct the time, place and manner in which employees perform duties for which they have been hired and the Proposer shall be solely responsible for all income tax withholding, benefits, unemployment compensation, workers compensation and other expenses associated with such employees. Proposer"s officers, agents and employees shall not be deemed to be City employees for any purpose. 11) Neither party shall be deemed to be in default under the terms of this agreement unless and until it has received written notice from the other party describing the failure and has been given not less than ten (10) days to cure such failure. If an event of default shall occur under this agreement, the MAY 06 '96 08:56 CITY OF LUBBOCK, Tx 806-762-3629 F•3 non-defaWtins party may terminate this agreement and may pursue such other rcmcdics as are provided by law. 12) This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof. Any modification or amendment of this Agreement shall be in writing and executed by both parties. 13) Thi Asreement may be execrated in any number of counterparts and each such counterpart shall for all purposes be deemed to be an original and all such counterparts shall together constitute one and the same agreement. 14) u auy pruviaion of this Agreement shall be determined by any court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall not be affected thereby and shall remain in full force and effect. 15) Time is of the essence to this Agreement and the obligations of the parties hereunder; provided, however that if any date specified herein for the performance of any duty, obligRtion or responsibility shall fall on a Saturday, Sunday or legal holiday for stational banks. E)MCUTED this 9th day of May, 1996. PROPOSER-. BY: M. 'White X DAVID R LANGSTON, TITLE: , ATTEST; &tt�,- �t Betty.M., Johnso City Secretary Secretary APPROVED AS TO CONTENT: % C) -4- - , 171 Q,,,kbVV � J` Dani, Director of Strdegic Plannhi APPROVED AS TO FORM: 1 d G Vaifi-6er, First Assistant City Attorney COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN ATTACHMENT A COMPREHENSIVE REUSE PLAN FOR REUSE AIR FORCE BASE - WORK PLAN Overview and Task Comparison Matrix The following discussion includes brief descriptions of how Proposer will approach each of the tasks listed in the LRRC request for proposals. Proposer divided the scope into two phases, corresponding to the two phases delineated in the RFP. TASK DESCRIPTIONS - PHASE 1 1.1 - Analysis of Existing Conditions 1.1.1 - Inventory and 1.1.2 - Condition Assessment Approach: MWM Architects (MWM) and Hugo Reed will lead the Reese AFB inventory and condition assessment efforts. They will begin by reviewing the inventory supplied by the Air Force and will consult with Woolpert as they review the base comprehensive plan they prepared in 1988. Proposer will then visit the lands encompassing Reese along with each building to confirm the Air Force inventory. Proposer will review the existing Real Property Inventory (RPI) for accuracy and completeness and compile a list of land, building and infrastructure assets based on the Category Codes (CAT Codes) identified for each facility on the RPI. The Installation s RPI listing will provide a quick, cost-effective approach to developing an initial inventory which may then be verified through the Condition Assessment Survey of the existing facilities and infrastructure. Per Air Force standards, the RPI listing will be broken down to include each asset (facility, land and infrastructure), its size, location and type of use (Category Code). Proposer will review each building as to its adaptability, assessing structural, mechanical, and utility integrity and needs. Proposer will also investigate compliance with applicable codes and the potential for reuse for each structure. Carter & Burgess will analyze the existing facility information to determine the condition of each facility and provide a break (one page) report as to the general components and conditions associated with each facility based on the information identified below. In addition, Proposer will perform a visual non -intrusive inspection to provide additional detail for facilities deemed to have a strong reuse potential. Information to be provided to the Proposer: Existing Master Plan Real Property Inventory for the entire installation Real Property records from the Base Civil Engineer for each facility Asbestos and other hazardous material inspection information for the facilities Access to drawings, as-builts and related documents pertaining to the original construction of the facilities COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN Any other real property records, surveys, inspection or other related data which might assist in determining the condition of the facilities The scope of each inspection will depend on the maintenance level into which the facility is placed, its planned reuse, and the length of time since it was last inspected. Generally, the higher the maintenance level, the more detailed the inspection, The inspection process will identify those critical deficiencies which, if left alone, would lead to worse, accelerated, or additional facility degradation and deterioration. Proposer's assessment process will provide a cost effective analysis of assets through a component level inspection for each system. Each component is rated based on the standardized inspection process to determine its current condition and remaining life. [e.g., Components of a roof (Field, Deck, Drains/Gutters, Soffit/Facia and Penetrations) are each inspected and scored by the inspector. The component level scores are then aggregated based on a weighting algorithm, which takes into consideration the type of roof, to produce an overall roof score for the facility and in turn an overall score for the asset.] The asset scores will be used to generate an Asset Condition Index (ACI) based on the ratio of the cost of deficiencies to the assets current value. ACI = Cost of Deficiencies Current Asset Value The strength of the index is that it provides a simple, valid and quantifiable indication of the relative condition of an asset or group of assets for comparison with other Assets, groups of assets or between organizations. Component scores also generate a estimated repair cost for each component which is then summarized at the system and facility level. Proposer will provide Capital Improvement/Resource Budgeting data and allows the client to identify high cost facilities due to pending maintenance and repair requirements. Based on the assessment information, facility managers can plan, schedule, prioritize and budget long range maintenance and repair and system replacement. The assessment is based on a visual/non-intrusive inspection of each assets major components, the identification of a type for each inspected component (e.g, road surface type or roof field type) and the quantification of the total size of the component (square feet, linear feet, miles, etc.). 1.1.3 - Utility Connections and Capacities Approach: C&B, with the assistance of Hugo Reed, will evaluate the existing electrical, gas, water and sanitary sewer distribution systems at the City and at Reese AFB (RAFB) for three reasons: Determine the extent to which the systems at RAFB require upgrades and/or modifications to bring them into compliance with local codes and requirements Determine the prospective marketability of these utilities, except for those utilities that the City operates. COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN _ Determine if the base utility systems can be connected to the existing municipal utility systems - can they accommodate the increased load Proposer assessment effort will include these steps.- On-site teps:On-site investigation of base utility distribution systems Review of distribution system as -built plans Determination of market value of distribution systems Determination of upgrade and repair costs Determination of system peak, off-peak and average loads and capacities Comparison of these demands with municipal system capacities Final recommendations In addition, Proposer will meet with local utility providers to determine the capabilities, costs and capacities of existing utility systems. Based on the information from local utilities, reuse plans for specific facilities and general capabilities and condition of the identified facilities, a determination will be made with respect to the need to connect on -base utilities with municipal suppliers. 1.1.4 - Important or Unique Natural Resources and I. t.5 - Unique Cultural Resources and Historic Buildings and Architectural Resources Approach: Proposer will identify important, unique and historical natural and cultural resources at the base that require protection; determine the impacts that such resources may have on reuse; and, recommend appropriate means to manage or dispose of those resources and impacts. 1.1.6 - Identification of Environmental Issues (Reserved) 1.1.7 - Socio -Economic Profile Approach: The Pathfinders, MWM, and Hugo Reed will collaborate to provide a detailed socio-economic profile for the base, City, and region. This team of experts will identify the impact area and its socioeconomic setting as a part of data collection. Proposer will then prepare a socio-economic profile of the Lubbock area which will include: Demographics Labor force analysis Economic base analysis, indicators, and trends COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN Proposer will assemble the profile information and present it in a format designed to inform policymakers, program managers, and prospective re -users of Reese. Special attention will be paid to the labor force characteristics because of their importance to employers. Proposer will document characteristics of the region including labor availability, costs, typical benefits, productivity, education, training, and skills (particularly of those currently and previously employed at Reese). Proposer will also prepare an assessment of the areas comparative relationship to a number of competitive locations which it will identify later. Proposer will detail the implications of the findings of the profile, including the types of industrial and other potential users attracted by the characteristics of the labor force and other socio-economic factors. Strengths and weaknesses in the labor force and economy relative to marketing the reuse of Reese will be noted by Proposer as will recommendations on steps needed to remedy the weaknesses. 1.1.8 - Land Use Suitability Analysis Approach: Based on information generated in Tasks 1.4 through 1.6, Proposer will prepare a land use opportunities and constraints analysis. Proposer will classify areas of the base as: Suitable for future development Available for development with limitations Undevelopable based on natural resource feature evaluation During this analysis, Proposer will also begin to identify specific uses, or categories of uses, which may be most appropriate for certain portions of the base such as: Large scale public and private sector projects Design and development of industrial parks Greenfield (undeveloped) sites that are to be used for production, distribution, or office facilities Proposer will prepare an analysis that is market driven and reflective of the potential users perspective. Proposer will also take into account acceptable planning standards for highest and best use. 1.1.9 - Reuse Constraints and Opportunities Approach: Proposer will catalogue the constraints and opportunities of base facilities and resources for various types and levels of reuse. Proposer will employ a structured decision making process that recognizes and assesses unique site conditions as opportunities for reuse of military facilities for non-military uses. Proposer will employ this process to evaluate the significant site factors and to help guide the decision making so that reuse options are developed which best utilize the opportunities and that work within the site constraints. Sample issues include: COMPREHENSIVE REUSE PLAN FOR REUSE AIR FORCE BASE - WORK PLAN Environmental clean-up - including what areas will be available and when. Organization of the base - considering the location of recreation, manufacturing, residential, and other areas. Circulation and access - maximizing existing roadways and minimizing the need for new access points and roadways. Grading, drainage, erosion control so that flood control requirements can be met with minimal regrading and so that erosion and sedimentation control measures are minimized. Creativity - a key challenge is to create opportunities where others might see none. Proposer will use thoughtful design approaches and decision making to yield such hidden opportunities Water Conservation - in an and climate, some thought is required for defining reuse opportunities that do not require tremendous levels of irrigation or potable and non -potable water. Utility service - Proposer must define the utility requirements for each reuse option and whether a constraint exists in certain areas for adequate utilities. _ Permitting - aside from the clean-up and permitting effort that the Air Force, TNRCC and others will undertake, reuse opportunities can be constrained by the permits they require. Such permitting constraints could include NPDES (from EPA), a 404 Permit for fill, bridge crossing permits, and others. Maintenance Programming - Proposer will define general development criteria for reuse options that will facilitate this development as well as future maintenance. Access for the Disabled - certain reuse options require that the facilities meet ADA requirements. Proposer will address that issue in this effort. This assessment will play an important role in establishing the opportunities and constraints as perceived by the end user serving as the foundation for Proposer's assessment. 1.1.10 - Annexation - Pros and Cons Approach: An important argument for annexation exists, even at this early stage of analysis, that the City of Lubbock must realize. Under the provisions of the Federal Property Management Regulations (FPMRs), the Department of the Air Force is required to identify the existing land use zoning in any appraisal instructions issued for the property. Under the provisions of Para. 101-47.303-2a. of the FPMRs, communities have the opportunity to include specific information on the present local zoning for the property as follows: (b) Information [i. e, the current zoning] which is furnished by the unit of general local government pursuant to the action taken in COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN paragraph (a) of this section shall be included in Invitations for Bid in advertised sales. In negotiated sales, this information shall (underscoring added). By annexing the base and zoning the Federal property now as a Federal enclave, normally with minimum density, the City can influence the future reuse of the property even if the City elects not to acquire the property itself. The significance of local land use zoning on annexation issues is described further in a document that John Lynch prepared entitled Acquiring Base Closure Property, which is available under separate cover. There is another important issue that the City must address that is closely related to annexation. Most DoD bases are subject to exclusive federal jurisdiction, and all legal issues must be taken to the US District Court. In assuming responsibility for the base, even under an interim use agreement, it will be important to investigate whether the Air Force deed calls for the property to automatically transfer to concurrent State jurisdiction when it is no longer used for military purposes. Many military deeds still require the military to formally relinquish exclusive jurisdiction. Based on these and other issues, the annexation decision will constitute a balancing process of benefits and liabilities to the City, County, region, and State. Proposer will examine the impact of annexation on the Lubbock comprehensive master plan which already addresses development, growth, and expansion of existing infrastructure, economic development initiatives, and the provision of business, jobs, parks, and the like. Proposer will determine if annexation is in the public s best interest, necessity, and convenience. Proposer legal and property transfer experts will prepare a report that documents the liabilities that the City will assume under annexation, including a safety analysis of each structure, improvement, and fixture on the base; results of previous soil analysis and testing; groundwater and surface water tests results; and other similar environmental evaluations. Proposer will also define the impacts of the annexation on adjoining property owners and other property owners within 300 feet of the outer border of the base. Proposer will include investigations of rights of way, easements, underground pipes, drainage facilities, cut and fill proposals, survey of fence lines, underground mineral ownership, and the impact of annexation on property values. 1.1.11 - Aircraft Load Limitations Approach: Proposer engineers at C&B and Hugo Reed will conduct a review assessment of the load bearing capacity of all the pavements on the base and for the hangar floors. Proposer will define the maximum wheel load, for various civilian and military landing gear configurations. Proposer will provide written documentation as to the allowable weight bearing capacity for single, dual, dual tandem and double dual tandem gear configurations. Experts at Hugo Reed will coordinate with the Base Civil Engineer (BCE) to obtain pavement section design as-builts which Proposer will the use to determine the base and sub -base structure and the strength they provide to the entire pavement section. COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN 1.1.1.2 - Assessment of Homeless and Native Americans within Lubbock Area (Reserved) 1.1.13 - Parcelization and Platting. Approach: oach: Proposer will design a flexible parcelization scheme to minimize confusion and maximize opportunities for large and small scale developers or end user groups. Proposer will evaluate City policies regarding platting and identify opportunities to streamline and enhance the efficiency of the platting process for potential users. Proposer will then initiate the platting process to blend the project into the City s system. 1.2 - ECONOMIC IMPACT OF BASE CLOSURE Overview The LRRC request for proposals listed four sub -tasks within this major task heading (Tasks 3.3.2.1 through 3.3.2.4). Proposer will approach this task as a single effort and arrange proposed work approach accordingly. Approach In analyzing the degree of economic reliance by adjacent communities on the base as well as the secondary or multiplier effect of the closure, special attention will be given to the commuting patterns for the affected work force and, most especially, to the short-term impact on local revenues. Proposer will consider impacts on: _ Retail Sales _ Real Estate Values _ Local Tax Base _ Schools Unemployment Rates _ Bank Deposits Other Factors Proposer will give careful attention to the status of the U.S. Department of Education Authorization Bill, which currently provides for a one-year hold -harmless for affected school systems. Short-term strategies will be recommended to deal with these impacts, in order to produce a long-term economic recovery strategy. 1.3 - COMMUNITY DESIRES Approach Proposer will gain an initial understanding of the reuse potential for Reese through a series of interviews and a minimum of three public forums. Proposer°s past experience indicates a great deal of information will be gathered through one-on-one interviews. These interviews provide Proposer with essential background knowledge prior to community input forums. Through these interviews, Proposer will gain a more in-depth understanding of the: COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN Business -development factors influencing reuse and recovery Land -use relationships Impacts on the surrounding community Perceptions of local government Community opinion on reuse Technical details that will frame reuse opportunities Proposer will meet individually with key representatives of Reese and begin to: Establish the reuse potential of the installation s facilities _ Review facility and infrastructure issues Discuss the potential for reuse of the installation with the people who are most knowledgeable of the situation on the installation Throughout this process, Proposer will also interview key elected and appointed officials, Chamber of Commerce representatives and neighborhood representatives. During this interview process, Proposer will begin to assess the potential impact of the facility s reuse on the surrounding community. In addition to the interviews anticipated with community, public and elected officials, Proposer will schedule interviews with private sector individuals knowledgeable about large scale real estate development to generate reuse ideas for further exploration; to seek responses to potential uses identified; and, to explore the perception of the market for these uses. Proposer will recruit participants to provide as broad a spectrum of viewpoints as possible. The result will be both a broad input on the goals and needs from those individuals in the community who have a vested interest in the outcome of the plan. Proposer will use this input to guide and shape the development of the reuse alternatives. 1.4 - POTENTIAL USE OF LAND & FACILITIES/ECONOMIC MARKET ANALYSIS Overview The work discussion for this task contains a number of modifications proposed by Proposer. An economic market analysis element has been added to this task. Proposer strongly feels that these efforts must begin at this time to provide a focus for the potential land uses. This constitutes Proposer's marketing while planning approach defined in the Executive Summary of this proposal. Second, Proposer as a separate discussion for Task 3.3.4.1 as presented in the RFP, combined discussions for Tasks 3.3.4.2 through 3.3.4.4 into a single discussion. 1.4.1 - Potential Future Uses of Base Facilities Approach: Most critical to the production of a market-driven reuse plan and the identification of potential users for base facilities is the assessment of the positions which Reese AFB and the area hold in the business recruitment marketplace. Considering the perspective of the potential user is fundamental when developing a reuse strategy that will enjoy the highest success rate. Proposer COMPREHENSI`JE REUSE PLAN FOR REUSE AIR FORCE BASE - WORK PLAN will provide an in-depth assessment of the area's attributes as a business location, considering all factors which affect a company s decision to relocate. Those factors include, but are not limited to.- Work o: Work force issues, including costs, productivity and availability Utilities, including costs, reliability and sufficiency Taxation, including real and personal property, income and others Transportation and access, including air, rail, and highway Regulatory issues _ Markets and raw materials Quality of life issues Available facilities At the outset of this project, Proposer will conduct extensive on-site assessments utilizing the methodology which it employs in site searches for corporate clients. Proposer will conduct interviews with: Economic Development Representatives Area Employers _ Utilities Providers and Users _ Base Commander Base Environmental Coordinator Base Transition Officer _ Chambers of Commerce and other Economic Development Corporations City Officials Business/Industry Real Estate Brokers While Proposer will conduct assessments of potential sites on the base and other physical assets during Task 1. 1, Analysis of Existing Conditions, Proposer will refine those assessments here. The result will provide an objective evaluation of the area s economic development infrastructure as it will be perceived by companies considering Reese as a location for business operations. FACTORS PROPOSER WILL ASSESS Labor Building Sites Availability Availability Costs Suitability Productivity Land Costs Workers Compensation Development Costs Depot Employee Skills Taxation Real/Personal Property Income/Franchise Employee -Related Impact Fees/Assessments Fees/Permits Transportation Products and Personnel Air Rail Trucking Electrical Power Quality of Life Issues COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN Costs Availability Reliability Natural Gas Costs Availability Reliability Water and Sewerage Treatment Costs Capacities/Availability Quality Existing Buildings Availability Suitability Costs Local Attitudes Toward Regulatory Issues Housing Education K-12 Higher Education Crime Medical Care Recreation Cost of Living Shopping Dining Facilities Climate Cultural Offerings Community Appearance Hotels/Motels Training Capital Financing The assessment will provide a definition of the product -- Reese and Lubbock. It will provide this assessment in a much broader and more detailed fashion than a corporate site selection team would typically compile for their company when considering relocation or a location for new business facilities. It also will define the position which the area holds in the economic development marketplace. This is the foundation upon which the LRRC must build a realistic economic development and reuse strategy. The information generated from the assessment provides an overview of Reese s most marketable attributes that can be immediately communicated to corporate investors. Simultaneously, it furnishes an appraisal of Reese s most significant obstacles to future growth which need to be resolved and/or improved. This is important so they too may someday appear as marketable attributes or, at least, neutral in their influence on the area s competitive position. Proposer will recommend a set of alternative actions (e.g., costs and funding strategies) which the LRRC can take to remove obstacles to development and improve the area s development potential. Proposer will provide recommendations for methods to protect and nurture existing assets for development. This is a critical element in ensuring that potential use of the Reese facilities is grounded in the reality of the market. 1.4.2 - Economic Feasibility, 1.4.3 - New Markets, and 1.4.4 - Comparative Analysis Approach: The assessment of the product described in 1.4.1 will determine the economic feasibility of various potential operations which might locate at Reese or in the region. Proposer's analysis will provide cost factors to be considered in the same fashion that they would be identified by a candidate tenant s site selection team. COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN Proposer will identify realistic reuse options which the LRRC can achieve. To some extent, recent free trade agreements have altered the location decision process of some companies for some operations. Proposer experience in assisting corporate clients to determine optimum locations shows that these agreements have given locales close to Mexico a new advantage in siting businesses for particular types of operations. Opportunities do exist for Reese and Lubbock for attracting U.S., Mexican, and Canadian companies. Proposer will fully explore these opportunities and define a strategy to exploit them. Proposer will conduct an analysis to determine the financial feasibility and implication of those options. Proposer will also provide a comparative analysis of each option which includes: Cost/Benefits Tax Revenues _ Job Creation Impacts on Quality of Life Economic Feasibility Short and Long -Term Sustainability _ Free Trade / NAFTA Opportunities 1.5 - GENERATION OF REUSE ALTERNATIVES, RECOMMENDATION OF PREFERRED ALTERNATIVE AND STRATEGIC DEVELOPMENT CONVERSION RECOMMENDATION 1.5.1 - Map & Narrative Describing Reuse Options Overview: The following discussions combine the three tasks listed in the RFP (Tasks 3.3.5.1 through 3.3.5.3) into a discussion on the preferred reuse options narrative and one for the maps that will illustrate these options. Approach - Preferred Reuse Options: On the basis of interviews with local stakeholders, Proposer will identify general reuse concepts for discussion within the community forums and the LRRC, which will include an option to not accept the base for redevelopment. Proposer will develop three alternatives for each portion of the base for consideration and evaluation by Proposer and the LRRC. Proposer will create alternatives that test contrasting approaches to maximizing the reuse potential of the base. The alternatives will consist of scenarios which examine various levels of density or intensity, tenant mix, circulation alternatives, and facility reuse/demolition options. Proposer will evaluate these alternatives in terms of their ability to meet the established goals of the LRRC. Proposer shall establish the preferred reuse options and a recommendation as to whether it is in Lubbock's best interest to pursue ownership and conversion of the base.. Proposer will establish the preferred reuse options for each portion of the base, as well as alternative reuse options. At a minimum, the plan will include the following elements: A map and narrative describing the preferred reuse options for each portion of the base COMPREHENSIVE REUSE PLAN FOR REUSE AIR FORCE BASE - WORD PLAN A map(s) and narrative describing alternative reuse options for each portion of the base Designation of the preferred option with supporting justification COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN TASK DESCRIPTIONS - PHASE 2 2.1 - REFINEMENT OF LAND -USE ALTERNATIVES 2.1.1 - Liaison with LRRC and Sub -Committees Approach: Proposer experts at C&B and Hugo Reed will arrange meetings with the LRRC and its sub- committees to review the preferred land use and reuse alternatives. The reuse options will be market-driven, i.e., they will reflect the results of Proposer's discussions with these candidate companies, versus a vision of a potential aviation reuse that has no basis in the marketplace. 2.1.2 - Detailed Market Penetration Testing and Fiscal Impact Analysis Approach: Based on input from the LRRC on the proposed reuse alternatives, Proposer will establish the preferred reuse option and refine the plans for each area of the base. This input will enable us to refine the market analyses Proposer prepared under Task 1. 1, Analysis of Existing Conditions to better relate to the typical industries and operations that would locate to Reese under the preferred reuse alternatives. Proposer's analysis of the attributes of Lubbock and Reese as a location for business and industry will employ the perspective of potential recruitment prospects. It will identify those operations that are most attracted by strengths and most tolerant of weaknesses. That process will provide a realistic assessment of the depth and breadth of the market which Reese can penetrate in generating civilian reuse of its facilities. Proposer will develop a comprehensive financial analysis for the preferred alternative which includes: Estimates of capital outlays which might be required for necessary improvements Projections of costs associated with operating the complex, including maintenance, _ staffing, insurance, utilities services, tenant improvements, amortization, and other operating cost factors Lease rates and absorption projections Revenue projections Cash flow analyses at various levels of occupancy A return -on -investment analysis This component allows the LRRC to assess fully the fiscal impacts, in both the near-term and over time, of the acquisition and operations of this complex. It also provides the groundwork necessary for possible future economic development conveyance. Proposer will provide recommendations on optional mechanisms for transactions, such as leases and interim leasing documents and concepts, financing sources and funding methods to reduce COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN local fiscal impacts; and, other matters such as state and federal programs and private sources.. Recommendations for phased implementation strategies Proposer will provide include: Organizational Structuring Staffing Operations Guidelines Equipment Needs Budgeting Proposer's strategy will identify the on-going maintenance and operations needs for Reese and land -use control mechanisms as appropriate for managing the overall base property in the preferred base reuse plan. Proposer will separately identify the Reese maintenance costs within the overall financial proforma supporting the preferred base reuse plan. 2,1.3 - Maps & Narrative Approach: Proposer will prepare final maps and narratives for the preferred reuse options identified in Phase 1, incorporating all input from Proposer's meetings with the LRRC, its committees, and the general public through Proposer's community forums. As stated in Task 1.5.1 in Phase 1, Proposer will prepare these maps in full color, on CARD. Proposer will prepare and refine the reuse options narrative to fully document the rationale for recommendations and to describe the reuse alternatives clearly and concisely. 2.2 - CAPITAL IMPROVEMENTS STRATEGY Overview Proposer's approach to the development of the Capital Improvements Strategy incorporates the information gained from previous tasks to identify specific capital expenditures necessary to repair, upgrade or enhance the existing Real Property Assets. A key component of Proposer's capital improvements strategy is the inclusion of both a First Cost and a Life Cycle Cost analysis for each proposed capital expenditure. The development of both pieces of information provides a much more complete and robust evaluation since the LRRC can more clearly identify the up -front and ongoing costs associated with various alternatives. 2.2.1 - Identification of needs for improvements in roads, utilities and structures Proposer will utilize the Real Property Inventory and condition assessment data developed under Phase I to identify the capital improvements necessary to support the reuse alternatives selected by the LRRC. Proposer will prioritize that data and develop specific projects in the form of a multi-year capital improvement program (CIP) which is synchronized to coincide with the preferred reuse alternatives. Proposer will then determine the functional requirements of each facility s planned reuse, evaluate the requirements against the existing condition of the structure, and then determine the total capital improvement requirements. The parking, utilities and other infrastructure requirements are then evaluated for each utility network to determine the total requirements versus capacities of available electrical, gas, sewer, parking and related systems. COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN 2.2.2 - Structures recommended for removal or demolition and related costs Proposer will identify Structures recommended for removal or demolition based on their lack of suitability to support the preferred reuse alternatives. Proposer will evaluate the likelihood of removal/sale/transfer of the existing structures in an attempt to minimize the demolition requirements and associated costs. When removal proves unfeasible, Proposer will develop an estimated cost for demolition for each structure as well as a time -table which prioritizes the structures for demolition. 2.2.3 - Map Displaying Recommendations Proposer will develop a map which displays the recommended improvements in conjunction with the functional model referenced previously. The map provides a visual understanding of both the structures and supporting networks (gas, electrical, water, waste water, storm water, parking and traffic) and serves as a valuable during the decision process and as a historical record following the decision process. The map will utilize both color and symbology to identify recommended improvements, timing of various improvements and the relationships between the different improvements. It provides a visual understanding of time and space relationships such as the upgrade of a structure and its corresponding utility and infrastructure support systems. The final maps Proposer will provide to the LRRC will serve as a record of the decision process 2.2.4 - Schedule Proposer will develop a project schedule which identifies all of the major tasks, sub tasks and milestones for the effort as part of the capital improvement strategy. It provides a valuable tool by identifying critical milestones, key relationships and resourcing requirements allowing the LRRC to understand the relationships between various improvements as well as the potential impacts from delay. Proposer will use Primavera P3, an extremely powerful windows based scheduling system which has consistently been rated as the best scheduling application. In addition, Proposer personnel have utilized Suretrack, MS Project Manager and TimeLine when requested to do so by individual clients. 2.2.5 - Estimated Costs Proposer will evaluate both the first time and Life Cycle Costs to provide the LRRC with a clear understanding of the full economic impact. Generally, improvements with a lower first cost or acquisition cost also require a higher operating expense through the life of the improvement. A Life Cycle cost analysis allows the LRRC to identify and understand the total cost of each improvement. 2.2.6 - Capital Improvements Financing Plan, Priorities, and 2.2.7 - Implementation Steps Approach: COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN Proposer will prepare a financing strategy and implementation schedule for proposed improvements at Reese considering a combination of funding sources. Proposer will outline a set of specific steps to implement these improvements and an improvement schedule. C&B will provide especially critical expertise for these task elements. 2.3 - MARKETING STRATEGY 2.3.1 - Sales and Marketing Tactics and Strategies Approach: In projecting space absorption and revenues, consideration will be given to the marketing conducted to attract users to the base. That campaign design considers local, regional, and State markets as well as national and international markets. Proposer will produce a comprehensive marketing strategy reaching companies within the identified target sectors with compelling reasons to consider Reese as a base for operations. The marketing strategy will include: Recommendations for marketing materials and the development of a marketing theme _ Recommendations for specific marketing tactics, including direct mil, telemarketing, trade shows and conferences, sales missions, and networking Staffing, budgeting, and equipment recommendations for the marketing function Mechanisms for measuring the success of the marketing program 2.3.2 - Financial Incentive and Free Port Assessment Approach: Proposer will combine the networks and databases of The Pathfinders and C&B for Proposer"s efforts in Lubbock and at Reese to determine and recommend effective, affordable incentives with acceptable payback periods and which add value to the transaction. Further, Proposer will assess the market effectiveness, at Reese and in the Lubbock area, of "free trade" tactics designed to position the area for increased "NAFTA" activities and investments. COMPREHENSIVE REUSE PLAN FOR REUSE AIR FORCE BASE - WORK PLAN Incentive areas to be examined include: Labor Force Assistance _ Infrastructure Debt and Equity Financing _ Taxation Regulation _ Real Estate Write Downs Housing Personal Property Security Others 2.3.3 - Target Market Segments and Contacts Approach: Proposer will base efforts for this task upon the assessment of location factors described in Task 1.4, Potential Use of Land & Facilities/Economic Market Analysis. Using this as a base, Proposer will draw upon its expertise in site selections for corporate clients and its database of site selection factors for various business and industrial sectors. Proposer will identify those operations which will be most attracted by strengths and most tolerant of weaknesses as targets for the marketing campaign. Proposer will provide specific contacts for companies within those target sectors. 2.3.4 - Short & Long Term Objectives, and 2.3.5 - Time Schedules & Costs Approach: Proposer will recommend specific goals and objectives for the marketing campaign, as well as mechanisms for measuring success of the campaign. The goals and objectives and success measures will each depend on various levels of resources that Proposer will also identify. Finally, Proposer will define a time frame for the implementation of the marketing campaign. Proposer will divide the time frame and budgets into two discreet elements: _ Zero to Two Years - Start -Up Marketing Campaign Three to Five Years - Ongoing Marketing Campaign Proposer will propose distinct strategies, schedules, and budgets for these two elements because the focus and effort for them differ dramatically. 2.4 - ACQUISITION STRATEGY (Reserved) COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WOR 2.5 - LAND/FACILITIES MAINTENANCE STRATEGY 2.5.1 - Ongoing Operation and Maintenance Needs (Reserved) 2.5.2 - Necessary Maintenance for Base Facilities Approach:_ Proposer will develop an assessment of maintenance conditions, priorities and options which will consider Air Force status determinations (below) as measured against LRRC requirements for reuse. _ Level 1 - Operational - Maintain facilities, systems and equipment at fully operational levels. Includes all services such as installed utilities, mechanical systems, grounds maintenance, and interior and exterior structural finishes. _ Level 2 - Preserved, Heat & Air Conditioning - Maintain the structural integrity, weather tightness, and utilities to limit deterioration. Periodically turn on faucets, toilets, etc., to keep drain traps wet. Winterize appliances, de -energize unnecessary electrical circuits. Limited grounds maintenance is required. Maintain heating and cooling systems at 50-55 degrees (heating) and 80-85 degrees (cooling). Level 3 - Preserved, No Air Conditioning - Same as Level 2 without a/c. Heat is provided to prevent damage to pipes. Level 4 - Preserved, No Heat or Air - Same as Level 3 with no heat. Turn off all utilities, drain water lines, treat sewer traps with anti -freeze. Schedule inspections for interior damage from mold or mildew. _ Level 5 - Leased - All utilities to be provided on a fee basis. Provide no other maintenance or repair services. _ Level 6 - Abandoned Facilities - Disconnect all utilities. Permanently close all facilities, systems, and equipment. No Caretaker actions other than correction of conditions adversely affecting public health and safety. The local firms, MWM and Hugo Reed, will assist Proposer by focusing on existing facilities, and on land and natural resources. Proposer will recommend sound and cost-effective maintenance strategies. Proposer will define a maintenance strategy, schedule, and estimated budget. 2.5.3 - Zoning / Land -Use Control Mechanisms Approach: Proposer will examine local land development control regulations to determine the appropriate controls for the reuse of the installation and to provide general guidelines. Proposer will focus COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE - WORK PLAN these land use controls on minimizing the impacts on the surrounding communities and on promoting continuity with the existing fabric of the surrounding area. 2.6 - MANAGEMENT STRATEGY Overview Proposer will group together discussion of several sub -tasks in this task, including those tasks listed in the RFP as 3.4.6.1 through 3.4.6.7. Such grouping will produce the reuse management strategy as set forth below. 2.6.1 through 2.6.7 - Management Requirements and Financing & Legal Issues (Reserved) 2.6.8 - Caretaker Agreement / Negotiation Assistance Approach: Proposer will provide recommendations on the timing and process required for making a decision on resource protection and on-going maintenance issues at Reese. Such attention will enable the LRRC to determine whether a third -party caretaker contract or a community -driven cooperative agreement, between the LRRC and AFBCA, provides superior support for reuse and conversion efforts. In addition, Proposer will deliver recommendations on: _ Maintenance needs Repair requirements _ Maintenance priorities Management and organization Funding requirements and annual budgets Negotiations with AFBCA Relationships between maintenance and reuse activities Appropriate maintenance levels and standards Attention to housing, industrial, distribution, aviation, utilities, administrative, service, and other facilities and infrastructure Other 2.6.9 Other Considerations Pursuant to the RFP attached hereto and the language set forth in this Attachment A, Proposer will: establish a partnership relationship with the LRRC and its Sub -committees; educate and receive information from the public through a series of forums and private and group interviews; _ conduct monthly status meetings with the LRRC and other meetings as necessary with Sub -committees and related bodies, COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE EASE - WORK PLAN _ establish, in concert with the LRRC, a project schedule which sets forth critical timing issues; and, conduct other such public involvement and media relations activities as are deemed mutually appropriate and productive. 3,1 Deliverables Proposer will provide the types of and number of deliverables as specified in the RFP. 3.1.1 Interim submissions of the Preliminary Reuse Plan (Phase One of the Scope of Services), Capital Improvements Strategy, Marketing Strategy, Acquisition Strategy, Land/Facilities Maintenance Strategy, and Management Strategy in 8 1/2" by 11" format, for review by the LRRC. 3.1.2 Thirty (30) copies of the Draft Preliminary Reuse Plan that shall include an executive summary, in 8 1/2" by I V format (not including maps), with cover. One original, unbound copy shall be provided as well, to allow additional copies to be produced if necessary. 3.1.3 Thirty (3 0) copies of the Final Comprehensive Reuse Plan, in 8 1/2" by 11" format (not including maps), provided in punched, loose-leaf, 3 -ring binders. The final plan report shall be arranged to include the following items, unless an alternative arrangement is mutually agreed on between the LRRC and the consultant. Executive Summary, Introduction, Goals and Objectives, Assessment of Existing Conditions, Land -Use Feasibility Analysis, Recommended Reuse Alternatives, Capital Improvements Strategy, Marketing Strategy, Acquisition Strategy, Land/Facilities Maintenance Strategy, Management Strategy. Final submission shall also include camera-ready originals of the entire report, suitable for reproduction by the client, plus 3.5''' floppy disks of all text, tables, charts, etc. (Word format). Final drawing submissions shall include one full-size and one reduced mylar copy of each drawing presented in report. 3.1.4 One Thousand (1000) copies of a promotional document which shall depict the Comprehensive Reuse Plan proposals focusing on the reuse alternatives, and implementation strategies. This document shall be prepared in a glossy, color medium that will illustrate, at a glance, the proposals contained within the Comprehensive Reuse Plan. Proposer will provide an estimate of the cost for production of additional copies beyond the 1,000. ATTACHMENT B THE PATHFINDERS TEAM COST PROPOSAL SUMMARY COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE PHASE HOURS FEE EXPENSES 1 2,639 $233,727 $21 500 II 1,834 $ 158,797 $ 13,600 TOTALS 4,473 $ 392,524 1$35,100 THE PATHFINDERS TEAM - COST PROPOSAL PHASE I OF THE COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE TASK HOURS FEE EXPENSES 1.1 Analysis of Existing Conditions $ 8,688 .1 &.2 Inventory and Condition Assessment of Lands, Buildings, and Infrastructure 513 $ 48,825 .3 Utility Connections and Capacities 234 $ 19,368 .4 &.5 Unique Resources 60 $ 4,968 .6 Identification of Environmental Issues (Reserved) 0 $ 0 .7 Socio -Economic Profile (included in Task 1.4.2) 0 0 .8 & .9 Land -Use Suitability, Constraints and Opportunities 198 $ 19,850 .10 Annexation - Pro's and Con's 42 $ 5,050 .11 Aircraft Load Limitations 24 $ 2,232 TASK HOURS FEE EXPENSES 1.1 Analysis of Existing Conditions (continued) .12 Homeless/ Native Americans Assessment (Reserved) 0 $ 0 .13 Zoning, Parcelization, and Platting (Shifted to Phase II) 0 0 1.2 Economic Impact of Base Closure (included in Task 1.4.2) 0 0 1.3 Community Desires 303 $ 25,932 $ 2,490 1.4 Potential Use of Land and Facilities/Economic Market Analysis $ 7,726 .1 Potential Future Uses of Base Land and Facilities 462 $ 39,110 .2, .3, & .4 Economic Feasibility, New Markets, and Comparative Analysis 505 $ 41,354 1.5 Generation of Reuse Alternatives, Preferred Alternative and Strategic Development Conversion Recommendation $ 2,596 .1 Map and Narrative Describing Reuse Options 298 $ 27,038 PHASE I TOTALS 2,639 $ 233,727 Phase I Direct Expense 1 1 $ 21,500 EXPENSES - PHASE I Travel ESTIMATED, ITEMIZED EXPENSES Washington National - Lubbock 4 Trips @ $500 $ 2,000 Dayton, Ohio - Lubbock 4 trips @ $500 $ 2,000 DFW - Lubbock 25 trips *a $200 $ 5,000 Total Travel $ 9,000 On -Site Expenses: $150/day (includes lodging, meals, auto, other related, customary business expenses) 83 days *, $150 $ 12,450 TOTAL EXPENSES $ 21,450 THE PATHFINDERS TEAM - COST PROPOSAL PHASE H OF THE COMPREHENSIVE REUSE PLAN FOR REESE AIR FORCE BASE TASK HOURS FEE EXPENSES 2.1 Refinement of Land -Use Alternatives $ 2,900 .1 Liaison with LRRC and Sub -Committees 66 $ 8,138 .2 Detailed Market Penetration Testing and and Fiscal Impact Analysis 256 $ 21,600 3 Maps and Narrative 124 $ 11,000 2.2 Capital Improvements $ 4,200 .1 Needs Identification 87 $ 7,280 .2 Structures / Removal or Demolition 88 $ 7,180 .3 Map - Recommendations 160 $ 12,375 .4 Schedule 80 $ 6,720 .5 Estimated Cost 144 $ 12,110 .6 &.7 Capital Improvements Financing Plan/Priorities 120 $ 11,500 TASK FOURS FEE EXPENSES 2.3 Marketing Strategy $ 2,300 .1 Sales and Marketing Tactics 215 $ 19,375 .2 Financial Incentives and Free Trade Port Analysis 116 $ 9,480 .3 Target Markets 80 $ 6,480 .4 & .5 Objectives, Schedules, and Costs 40 $ 3,200 2.4 Acquisition Strategy (Reserved) 0 $ 0 $ 0 2.5 Land / Facilities Maintenance Strategy $ 2,300 .1 & .2 Operations and Facilities Maintenance Needs (Reserved) 0 $ 0 .3 Zoning / Land -Use Control Mechanisms 60 $ 4,800 1.1.13 Parcelization and Platting 110 $ 9,275 TASK HOURS FEE EXPENSES 2.6 Management Strategy $ 1,900 .1 - .7 Management Requirements (Reserved) 0 $ 0 .8 Caretaker Agreement / Negotiation 88 $ 8,284 PHASE H TOTALS 1,834 $ 158,797 Phase H Direct Expense $ 13,600 ESTIMATED, ITEMIZED EXPENSES EXPENSES - PHASE II Travel Washington National - Lubbock 4 Trips @ $500 $ 2,000 Dayton, Ohio - Lubbock 1 trips @ $850 $ 850 DFW - Lubbock 18 trips @ $200 $ 3,600 Total Travel $ 6,450 On -Site Expenses: $150/day (includes lodging, meals, auto, other related, customary business expenses) 48 days @ $150 $ 7,150 TOTAL EXPENSES $ 13,600 0 ATTACHMENT C PAYMENT SCHEDULE The project fee shall be paid in the following manner: PHASE I $20,000.00 Initial payment following authorization to proceed $47,051.08 30 days following authorization to proceed $47,051.08 30 days following first payment $47,051.07 30 days following second payment $47,051.07 Completion of all Phase I tasks and acceptance of the Phase I work products by the City $25,522.70 Final Payment -10% Grantor (OEA) Withholding Requirement $233,727.00 TOTAL PHASE I FEES PRASE H $35,389.33 30 days following authorization to proceed $35,389.33 30 days following first payment $35,389.32 30 days following second payment $35,389.32 Completion of all Phase II tasks and acceptance of the Phase II work products by the City $17,239.70 Final Payment - 10% Grantor (OEA) Withholding Requirement 5158,797.00 TOTAL PHASE H FEES Expenses: The City will be billed monthly for project expenses. Invoices for the Proposer's expenses shall be mailed to the City. All such invoices shall be payable within thirty (30) days after the date they are received. Expenses for Phase I will not exceed $21,500.00, and expenses for Phase II will not exceed $13,600.00. 0