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HomeMy WebLinkAboutResolution - 1604 - Agreement - AJ Parry & Associates Inc - Financial Studies, LIA - 03/08/1984MG:cl RESOLUTION 1604 - 3/8/84 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 a Professional Services Agreement between the City of Lubbock and A.J. Parry and Associ- ates, Inc., attached herewith, 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 8th dpi of March ATTEST: yn Ga a, City S APPROVED AS TO CONTENT: f`�4x/�ILI`l/1� t Marvin Coffee, Direct f Aviation APPROVED AS TO FORM: l i e e isar,sistant City Attorney 9001. RESOLUTION 1604 - 3/8/84 ' Prepared by Legal, Dept,, 3-2-84, Draft #1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF LUBBOCK LUBBOCK, TEXAS AND A. J. PARRY AND ASSOCIATES, INC. THIS AGREEMENT, made this 8th day of March , 1984, by and between the City of Lubbock, Texas (hereinafter referred to as the "City"), and A. J. Parry and Associates, Inc-, Aviation Consultants, a corporation under the laws of the State of California, with its principal office if Burlingame, Califor- nia (hereinafter referred to as the "Consultantst WITNESSETH:' WHEREAS, the Consultant has participated in the preparation of the 1980 Master Plan for Lubbock International Airport; and WHEREAS, the City is desirous of continuing to use the professional services of the Consultant in undertaking certain assignments pertaining to the development of Lubbock Interne- tional Airport. NOW THEREFORE, it is hereby mutually agreed that the Consultant will provide such professional services as set forth herein. TASK.I - AIRLINE TRAFFIC AND EARNINGS REPORT _.- The format of the financial information set forth in the Airline Traffic and Earnings Report will be based on the premise that the required airline user fees will be sufficient to pay for their (airlines) fair share toward maintaining, operating and improving Lubbock International Airport. The Consultant will provide the financial document to support this premise, thus - reducing actual negotiations to only those financial items which should or should not be included as items for determining~ airline user fees. The document can also be used by the City to establish a policy as to the need, if any, for such negotiations. A. Airli-ne Traffic and Earnings Report An Airline Traffic and Earnings Report will be prepared for Lubbock International Airport which will determine the necessary rates and charges (Terminal Building and Area and Airfield Area) that will be required from the airlines for the continued use of the Airport. Optimum use will be made of the financial data already prepared by the Consultant as part of the 9980 Master Plan for Lubbock International Airport and the indirect cost allocation plan prepared by David M. Griffith & Associates as applicable. This report will consider, but will not necessarily be limited to, the following historical and projected items as they relate to the two cost areas; Operating Revenues (Excluding Airline Revenues) - Landing fees - Nonscheduled and Itinerant Building and Ground Rentals , Concessions Rent A Car Advertising Paid Parking Lot Coin -Operated Services - 2 - Surface Transportation Telephone Stations Other Fuel Flowage Fees. Interest on Investments Other Operating Expenses (Direct or Indirect) Salaries, Wages and Benefits Maintenance Contractual Supplies _ Utilities Fuel Administrative Insurance Crash/Fire/Rescue Debt Service Programs Other, if required Noncash Operating Expenses Depreciation (Fixed Assets and Equipment) Interest on Land Other (Borrowed Money) Judgments, claims and damages B. Projected Financial Information The projected financial information presented in the Airline Traffic and Earnings Report will be based upon enplaned passengers and aviation activity forecasts deve- loped in the 1980 Master Plan, with appropriate adjustments based on current statistical data provided by the Director of Aviation and/or others. In developing the financial - forecasts, consideration will be given to any on-going and proposed capital improvements programs. These forecasts will be developed on an annual basis for Fiscal Years 1984 through 1986. 3 - C. Review and Recommendations Upon completion of the Airline Traffic and Earnings Report, the Consultant will meet with the City to review the document and to make appropriate recommendations -as to future airline user fees. A policy and schedule of pro- cedures to be used by the City as the basis for actual negotiations with the airlines prior to the next adj-ustment period, will be recommended. TASK II -,AIRPORT LEASE REVIEW AND APPRAISAL AND RECOMMENDED LEASE POLICY. A. Airport Lease Review and Appraisal A review will be made by the Consultant of thirty (30) existing airport user leases and contracts. The leases and contracts to be appraised will be determined by the City. The appraisal, where applicable, will consider, but not necessarily be limited to, the following: Description Term Options Privileges Granted (use of land, buildings, utilities, roads, parking facilities, etc.) Financial Basis (rental from buildings, land, percen- tage of gross receipts, minimum guarantees, etc.) Obligations of Lessee and City/Lessor (maintenance, insurance, trash removal, utilities, janitorial services, business records, etc.) Construction of Improvements Title to Property 4 t o , Insurance Subleasing Amendments Other significant conditions. Based upon the above appraisal and the latest standards used throughout the industry, specific recommendations will be made, where required as determined by the study, for inclusion within any future airport leases and contracts. B. Recommended Lease Policy On completion of the review and appraisal of airport leases and contracts, recommendations will be made, regard- ing a future airport least policy. This policy will be prepared in a format that can be used by the City as a guide (1) to obtain optimum income from airport tenants and users, (2) for future lease negotiating purposes, (3) to establish sound lease standards, and -(4) to make day-to-day and long term administrative decisions. The Recommended Lease Policy will consider, but not necessarily be limited to, the following: Basic Lease Principles Privileges and Rights of Lessee 'and City/Lessor Term Method of Determining Rates and Charges Maintenance and Operational Obligations 'Insurance 5 _ Private Development Leasing City -Owned Building (fully or partially amortized) Commercial Aviation Lease Plots (fixed base operators, etc.) Non -;Commercial Aviation Lease Plots (corporate hangars, T -hangars, tie -downs, etc.) Nonaviation Commercial Lease Plots (industrial/ commercial areas, etc.) TASK III - OTHER SERVICES The Consultant, upon authorization from the City, will actively participate and assist the City in tenant negotiating meetings, conferences and other assignments. GENERAL CONDITIONS A. Consideration The cost of the services provided will be on a time and expense basis. Time is charged only for that used actively on the assigned project, including necessary travel time. Long distance telephone and reproduction will be billed at cost# plus twenty-five percent (25%) for taxes and handling. Other out-of-pocket expenses will be billed at cost. Travel will be from San Francisco, California, with air -fare prorated on trips to more than one client. The Fee Schedule is as follows: Category Rate per Hour Principal $55.00 Senior Associate $45.00 Associate $30.00 Analyst/Secretarial $15.00 Computer $20.00 _ 6 ._ B. Fee The fee for the professional services set forth in Tasks I and II shall not exceed Fifteen Thousand Five Hundred and No/100 Dollars ($15,500.00). C. Additional Services If additional services, including Task III, are requested by the City, and, to the extent that such services may exceed Fifteen Thousand Five Hundred and No/100 Dollars ($15,500.00) fee, the cost of additional services will be based, for a period of one (1) year from the effective date of this Agreement, upon the Fee Schedule set forth under General Conditions, Paragraph A. The Consultant'will not undertake any additional services unless authorized in -writing by the City. D. Time Schedule A preliminary draft of both Task I - Airline Traffic and Earnings.Report and Task II - Airport Lease Review and Appraisal and'Recommended Lease Policy will be ready for City review and comments within ninety (90) working days after receipt of notice to proceed. The final reports will be ready twenty-one (21) working days after receipt of approval of the preliminary drafts. E. Printing Three (3) typewritten copies of the preliminary draft, of Task I and two (2) typewritten copies of the preliminary - 7 draft of Task II will be provided to the City for review. After receipt of City approval of the preliminary drafts (General Conditions, Paragraph D), the Consultant will provide ten (10) copies of the final Airline Traffic and Earnings Report - Task I and twenty (20) copies of the final Airport Lease Review and Appraisal and Recommended Lease Policy - Task II. F. Travel The Consultant will.make three (3) trips to Lubbock, Texas. The initial trip will be made for the purpose of collecting information required to prepare Tasks _I and II. The second trip will be made to review the findings and preliminary drafts with the City. During the third trip the final reports will be presented to the City and other interested psrties.and/or to participate in tenant nego- tiations. G. Payment Partial payments shall be made monthly within thirty (30) days after ,receipt. of statement from Consultant. H. Hold Harmless Consultant shall indemnify and hold the City harmless from and -against any and all claims, demands, liability, damages or suits, including reasonable attorney's fees and costs, for bodily ;injury or property damage arising from any fault or negligence •of Consultant while on,.the piemises of 8 - the City or in the performance of the services contemplated by this Agreement. I. Compliance with Applicable Law The Consultant will comply with any and all local, State and Federal laws regarding age, sex, race, color, national origin, handicap, citizenship, hours, wages and conditions of employment affecting the services set forth herein; and the Consultant will pay the contributions measured by wages of his employees required by the Federal Unemployment Tax Act, the Federal Insurance Act, and any other payroll tax. J. Project Delays Should any delays in the performance of the project be incurred as a result of actions by the City, the Consul - tent's obligation for project completion shall be extended by an amount of time equal to the delays. K. CRA Assurance The Consultant agrees to conduct the professional services, as set forth herein, .in compliance with all requirements imposed by or pursuant to Title VI of the Civil Rights Act of 1964 and Title 49, Code of Federal Regula- tions, Part 21, as:amended, which are herein incorporated by reference and made part of this Agreement.. L. Independent Contractor The Consultant is an independent contractor, and nothing contained herein shall be construed as making such 9 _ consultant an agent or employee of the City, or as autho- rizing such consultant to create or assume any obligation or liability for or on behalf of the City. Further,'Consultent assumes all rights, obligations and liabilities applicable to it, as such independent contractor, hereunder. Any provisions of this Agreement that may appear to give the City the Right to direct the Consultant as to the details of doing the work shall be deemed to mean that the Consultant will follow the desires of the City in the results of the work, only. M. Termination for Convenience of City The City has the right of cancellation on thirty (30) days notice in writing from the City to the Consultant, such .notice to be forwarded by certified mail. The Consultant shall be paid for fees and time expended Up to the date of cancellation in accordance with the schedule of rates set forth in General Conditions, Paragraph A, plus expenses, which will not exceed, in any event, the sum of Fifteen Thousand Five Hundred and No/100 Dollars.($15,500.00). N. Transfer It is mutually agreed that this Agreement is not transferable to a third party by either party signatory without the written consent of the other principal party. 0. Subcontracting The Consultant will not subcontract for services set forth herein without the written consent of the City. - 10 r; IN WITNESS WHEREOF, `the -pier .ties'hereto have caused the Agreement to be executed by their duly authorized representatives on the day and year first above written. CITY OF LUB B Y : I, ATTEST: E elyn fg City Secretary -Tree rer APPROVED AS TO CONTENT: Ma vin Coffee Director of Aviation APPROVED AS TO FORM: �75� -Q � �- MichXle lisar As s -tent City Attorney A. J. PAR Y'& ASSOCIATES, INC. BY: lei Yom... A. id PAR Y, ESIDENT ATTST: