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CONTRACT 4668 Professional Services Agreement CLOSEDAgreement No. 4668 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND ISAAC SPORTS GROUP LLC This AGREEMENT is entered into this 20"' day of August, 2014, by and between the CITY OF EL SEGUNDO, a municipal corporation and general law city ( "CITY ") and ISAAC SPORTS GROUP LLC, a Michigan Limited Liability Corporation ( "CONSULTANT "). 1. CONSIDERATION. A. As partial consideration, CONSULTANT agrees to perform the work listed in the SCOPE OF SERVICES, below; B. As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement; C. As additional consideration, CITY agrees to pay CONSULTANT a sum not to exceed fifteen thousand dollars ($15,000) for CONSULTANT's services. CITY may modify this amount as set forth below. Unless otherwise specified by written amendment to this Agreement, CITY will pay this sum as specified in the attached Exhibit "A," which is incorporated by reference. 2. SCOPE OF SERVICES. A. CONSULTANT will perform services listed in the attached Exhibit "A," which is incorporated by reference. B, CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by CITY, necessary or proper to perform and complete the work and provide the professional services required of CONSULTANT by this Agreement. 3. PERFORMANCE STANDARDS. While performing this Agreement, CONSULTANT will use the appropriate generally accepted professional standards of practice existing at the time of performance utilized by persons engaged in providing similar services. CITY will continuously monitor CONSULTANT's services. CITY will notify CONSULTANT of any deficiencies and CONSULTANT will have fifteen (15) days after such notification to cure any shortcomings to CITY's satisfaction. Costs associated with curing the deficiencies will be borne by CONSULTANT. Agreement No. 4668 4. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement, CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and hourly rates for each personnel category and reimbursable costs (all as set forth in Exhibit "A ") the tasks performed, the percentage of the task completed during the billing period, the cumulative percentage completed for each task, the total cost of that work during the preceding billing month and a cumulative cash flow curve showing projected and actual expenditures versus time to date. 5. NON- APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT for current services are within the current budget and within an available, unexhausted and unencumbered appropriation of the CITY. In the event the CITY has not appropriated sufficient funds for payment of CONSULTANT services beyond the current fiscal year, this Agreement will cover only those costs incurred up to the conclusion of the current fiscal year. 6. ADDITIONAL WORK. A. CITY's city manager ( "Manager ") may determine, at the Manager's sole discretion, that CONSULTANT must perform additional work ( "Additional Work ") to complete the Scope of Work. if Additional Work is needed, the Manager will give written authorization to CONSULTANT to perform such Additional Work. B. If CONSULTANT believes Additional Work is needed to complete the Scope of Work, CONSULTANT will provide the Manager with written notification that contains a specific description of the proposed Additional Work, reasons for such Additional Work, and a detailed proposal regarding cost. C, Payments over $5,000 for Additional Work must be approved by CITY's city council. All Additional Work will be subject to all other terms and provisions of this Agreement. 7. FAMILIARITY WITH WORK. A. By executing this Agreement, CONSULTANT agrees that it has: Carefully investigated and considered the scope of services to be performed; ii. Carefully considered how the services should be performed; and iii. Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement. B. if services involve work upon any site, CONSULTANT agrees that CONSULTANT has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder. -2- Agreement No. 4668 Should CONSULTANT discover any latent or unknown conditions that may materially affect the performance of the services, CONSULTANT will immediately inform CITY of such fact and will not proceed except at CONSULTANT's own risk until written instructions are received from CITY. 8. TERM. The term of this Agreement will be from August 25, 2014, to September 30, 2015. Unless otherwise determined by written amendment between the parties, this Agreement will terminate in the following instances: A. Completion of the work specified in Exhibit "A "; B. Termination as stated in Section 16. 9. TIME FOR PERFORMANCE, A. CONSULTANT will not perform any work under this Agreement until: CONSULTANT furnishes proof of insurance as required under Section 23 of this Agreement; and ii. CITY gives CONSULTANT a written notice to proceed. B, Should CONSULTANT begin work on any phase in advance of receiving written authorization to proceed, any such professional services are at CONSULTANT's own risk. 10. TIME EXTENSIONS. Should CONSULTANT be delayed by causes beyond CONSULTANT's control, CITY may grant a time extension for the completion of the contracted services. If delay occurs, CONSULTANT must notify the Manager within forty-eight hours (48 hours), in writing, of the cause and the extent of the delay and how such delay interferes with the Agreement's schedule. The Manager will extend the completion time, when appropriate, for the completion of the contracted services. 11. CONSISTENCY. In interpreting this Agreement and resolving any ambiguities, the main body of this Agreement takes precedence over the attached Exhibits; this Agreement supersedes any conflicting provisions. Any inconsistency between the Exhibits will be resolved in the order in which the Exhibits appear below: A. Exhibit A: Scope of Work; B. Exhibit B: Budget; and C. Exhibit C: Proposal for Services. 12, CHANGES. CITY may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the -3- Agreement No. 4668 contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties. 13. TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a Taxpayer Identification Number. 14. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and maintain during the term of this Agreement, all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement. 15. WAIVER. CITY's review or acceptance of, or payment for, work product prepared by CONSULTANT under this Agreement will not be construed to operate as a waiver of any rights CITY may have under this Agreement or of any cause of action arising from CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character. 16. TERMINATION, A. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause, B. CONSULTANT may terminate this Agreement at any time with CITY's mutual consent. Notice will be in writing at least thirty (30) days before the effective termination date. C. Upon receiving a termination notice, CONSULTANT will immediately cease performance under this Agreement unless otherwise provided in the termination notice. Except as otherwise provided in the termination notice, any additional work performed by CONSULTANT after receiving a termination notice will be performed at CONSULTANT" own cost; CITY will not be obligated to compensate CONSULTANT for such work. D. Should termination occur, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by CONSULTANT will, at CITY's option, become CITY's property, and CONSULTANT will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination, not to exceed the total costs under Section I (C). E. Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated. F. By executing this document, CONSULTANT waives any and all claims for damages that might otherwise arise from CITY's termination under this Section. -4- Agreement No. 4668 17. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by CONSULTANT under this Agreement are CITY's property. CONSULTANT may retain copies of said documents and materials as desired, but will deliver all original materials to CITY upon CITY's written notice. CITY agrees that use of CONSULTANT's completed work product, for purposes other than identified in this Agreement, or use of incomplete work product, is at CITY's own risk. 18. PUBLICATION OF DOCUMENTS. Except as necessary for performance of service under this Agreement, no copies, sketches, or graphs of materials, including graphic art work, prepared pursuant to this Agreement, will be released by CONSULTANT to any other person or public CITY without CITY's prior written approval. All press releases, including graphic display information to be published in newspapers or magazines, will be approved and distributed solely by CITY, unless otherwise provided by written agreement between the parties. 19. INDEMNIFICATION. A. CONSULTANT agrees to the following: i. Indemnification for Professional Services. CONSULTANT will save harmless and indemnify and at CITY's request reimburse defense costs for CITY and all its officers, volunteers, employees and representatives from and against any and all suits, actions, or claims, of any character whatever, brought for, or on account of, any injuries or damages sustained by any person or property resulting or arising from any negligent or wrongful act, error or omission by CONSULTANT or any of CONSULTANT's officers, agents, employees, or representatives, in the performance of this Agreement, except for such loss or damage arising from CITY's sole negligence or willful misconduct. ii. Indemnification for other Damages. CONSULTANT indemnifies and holds CITY harmless from and against any claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability, arising out of this Agreement, or its performance, except for such loss or damage arising from CITY's sole negligence or willful misconduct. Should CITY be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, CONSULTANT will defend CITY (at CITY's request and with counsel satisfactory to CITY) and will indemnify CITY for any judgment rendered against it or any sums paid out in settlement or otherwise. B. For purposes of this section "CITY" includes CITY's officers, officials, employees, agents, representatives, and certified volunteers. -5- Agreement No. 4668 C. It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement. D. The requirements as to the types and limits of insurance coverage to be maintained by CONSULTANT as required by Section 23, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONSULTANT pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification. 20. ASSIGNABILITY. This Agreement is for CONSULTANT's professional services. CONSULTANT's attempts to assign the benefits or burdens of this Agreement without CITY's written approval are prohibited and will be null and void. 21. INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that CONSULTANT will act as an independent contractor and will have control of all work and the manner in which is it performed. CONSULTANT will be free to contract for similar service to be performed for other employers while under contract with CITY. CONSULTANT is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct CONSULTANT as to the details of doing the work or to exercise a measure of control over the work means that CONSULTANT will follow the direction of the CITY as to end results of the work only. 22. AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with respect to all services and matters covered under this Agreement. CITY will have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcript therefrom, and to inspect all program data, documents, proceedings and activities. CONSULTANT will retain such financial and program service records for at least three (3) years after termination or final payment under this Agreement. 23. INSURANCE. A. Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONSULTANT will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below: Type of Insurance Limits Commercial general liability: $1,000,000 Professional Liability $1,000,000 Business automobile liability $1,000,000 ME Agreement No. 4668 Workers compensation Statutory requirement B. Commercial general liability insurance will meet or exceed the requirements of the most recent ISO -CGL Form. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Liability policies will be endorsed to name CITY, its officials, and employees as "additional insureds" under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto. Such endorsement must be reflected on ISO Form No. CG 20 10 11 85 or 88, or equivalent. Such insurance will be on an "occurrence," not a "claims made," basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to CITY. C. Professional liability coverage will be on an "occurrence basis" if such coverage is available, or on a "claims made" basis if not available. When coverage is provided on a "claims made basis," CONSULTANT will continue to renew the insurance for a period of three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT for all claims made by CITY arising out of any errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect. D. Automobile coverage will be written on ISO Business Auto Coverage Form CA 00 01 06 92, including symbol 1 (Any Auto). E. CONSULTANT will furnish to CITY duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with insurers with a current A.M. Best Company Rating equivalent to at least a Rating of "A:VII." F. Should CONSULTANT, for any reason, fai I to obtain and maintain the insurance required by this Agreement, CITY may obtain such coverage at CONSULTANT's expense and deduct the cost of such insurance from payments due to CONSULTANT under this Agreement or terminate pursuant to Section 16. 24. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written approval to use any consultants while performing any portion of this Agreement. Such approval must approve of the proposed consultant and the terms of compensation. 25. INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the status on the project, which will include a schedule update and a short narrative description of _7_ Agreement No. 4668 progress during the past month for each major task, a description of the work remaining and a description of the work to be done before the next schedule update. 26. NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows: If to CONSULTANT: Isaac Sports Group, LLC 3419 Wagner Woods Ct. Ann Arbor, MI 48103 Attention: Stu Isaac If to CITY: City of El Segundo 350 Main St. El Segundo, CA Attention: Meredith Petit Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. 27. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest laws and regulations including, without limitation, CITY's conflict of interest regulations. 28. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT's bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any company or person, other than CONSULTANT's bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability. 29. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of CONSULTANT's or CITY's obligations under this Agreement. 30. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County. 31. COMPLIANCE WITH LAW. CONSULTANT agrees to comply with all federal, state, and local laws applicable to this Agreement. 32. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. There is one Attachment to this Agreement. This 5:11 Agreement No. 4668 Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns. 33. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party. 34. SEVERABILITY. If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect. 35. AUTHORITY /MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. CITY's executive manager, or designee, may execute any such amendment on behalf of CITY. 36. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this Agreement, agreements ancillary to this Agreement, and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature. 37. CAPTIONS. The captions of the paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement. 38. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this Agreement. 39. FORCE MAJEURE. Should performance of this Agreement be prevented due to fire, flood, explosion, acts of terrorism, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties' reasonable control, then the Agreement will immediately terminate without obligation of either party to the other. 40. STATEMENT OF EXPERIENCE, By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY. [Signatures on next page] -9- Agreement No. 4668 IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written. I CITY O,'! El, SE CP DC Greg & r, ' fer, City Marer ATTEST: Taxpayer ID No. 26-4259522 Trac Weyr CityC ty C I erk APPROVED rr, "' � 'ORM- MARK D. H qty Attorney A154T 53 Karl H. B Assistant V"torney so Agreement No. 4668 Exhibit A CITY OF EL SEGUNDO WISEBURN SCHOOL DISTRICT FACILITY PROGRAM, FINANCIAL and SUSTAINABILITY ANALYSIS August 8, 2014 OVERVIEW The Wiseburn School District and the City of El Segundo are undertaking a joint use venture to build and operate an aquatic center on the campus of Wiseburn High School. The aquatic center will meet the aquatic programming needs of the High School, the overall school district, the City of El Segundo, and the overall community. The School District is providing the land and the bulk of capital funding while the City of E Segundo will be responsible for managing the facility and paying the operating costs of the facility. It is critical to the city that the facility be self - sustaining, supporting operating expenses through user fees, program revenue, and other revenue sources. It will also be important that programming and scheduling of the new aquatic center is integrated into the existing aquatic programs and facilities in El Segundo to maximize the overall aquatic programs, creating growth in all the facilities and best utilizing the unique aspects of each facility. To analyze and develop the management, programming, design options, and business model that can sustain operations it is important to understand the current aquatic programs and facilities in the area, identify the needs of all potential users and stakeholders, and develop the programs and schedule that will maximize access and affordability to the entire community. It will be important to not only meet the needs of the school district and create expanded aquatic programs for the district but to develop enhanced and new aquatic programming for all segments of the community. This includes: • Learn to swim • Aquatic fitness programming • Adult Swimming, including lap lanes • Senior programming • Masters swimming and triathlon training • Club swimming, water polo, diving, and synchronized swimming teams • Training • Meets, games, and events • Family and recreational programming • Open community user access • Special needs programming • Aquatic therapy and rehab Agreement No. 4668 To maximize the programming and benefit to the community and to generate the operational and programming revenue to sustain operations it is important to blend the programming and scheduling needs of the school district with access for community programs. Once the programming needs and opportunities for all stakeholders are identified it is possible to determine the facility needs; including pool(s) configurations, support facilities, and amenities. At this point it is possible to evaluate the current design options with respect to the following variables: • Impact on programming • Ability to meet the needs of the stakeholders • Maximizing benefits to the City and the overall community • Operational costs • Potential revenue • Long term maintenance • Overall project costs Based on these criteria ISG will also provide recommendations on potential design modifications that may reduce project cost, enhance sustainability, and meet stakeholder needs, goals, and objectives in the most cost effective designs. The Isaac Sports Group (ISG) proposes to conduct a study analyzing the aquatic program needs and potential in the community in order to develop a program model and schedule that can cost effectively meet the needs of the School District, the City, potential outside user groups, and the overall community. ISG will provide the analysis of both the single 50 meter x 25 yard pool design model and the expanded 54m x 25m pool with the 25 yard teaching /therapy pool. We will also provide a similar analysis for any hybrid design recommendations. ISG will then analyze potential participation, recommend user and program fees and pool rental rates suitable for the City and the regional market. Based on this programming and fee structure, ISG will develop a detailed financial analysis and operating budget for each design model option. This analysis will include analysis of any technology or design updates that can drive programming and revenue. ISG will also evaluate the long term maintenance and replacement costs of the facility as well as analyzing return on investment and life cycle costs of any key technology or equipment that can help reduce annual operating costs and long term maintenance. ISG will also review and recommend a management and staffing structure that fits into the current City and School District parameters and can best insure the success of the aquatic center and its programs, This staffing structure is also critical to developing the operating budget for the facility. The ultimate goal of the consulting services and analysis is to provide the City of El Segundo with the data to analyze the financial operations of the aquatic center and provide recommendations to the City to determine the optimum design, maximize return on investment, and insure the financially sustainable operation of the aquatic center and its programs. Agreement No. 4668 ISG SERVICES In this study ISG will draw on its key hands -on experience in facility management, operations, events, marketing, and knowledge of comparable facility best practices around the country. Specifically, ISG services will include the following: Community Engagement • Work with the School District and the City to engage stakeholders, user groups, and members of the community to understand the current aquatic facility and programming environment and determine the needs and potential for enhanced and new programming Programming • Analyze current aquatic, fitness, and health and wellness programming in the city and across the region as well as other facilities and programs in the area and determine facility needs for existing, enhanced, and new programs and projected growth • Develop program model and sample schedule for facility • School District programming and scheduling needs • City specific programs • Outside user and rental groups • Suggest ways to best integrate new and enhanced programs into the overall aquatic programming run by the City of El Segundo o Identify potential updates to existing facilities to better integrate programs and best take advantage of the unique features of current facilities, especially the Uhro Saari Swim Stadium • Identify and engage (in conjunction with the City) potential outside user groups (teams, youth organizations, other) and quantify their needs and potential space and time needs • Develop specific program details relevant to management and financial projections • Time and space needed • Rate and fee analysis ■ Research into existing rates and fees in regional market ■ Develop fee structure for programs and users • Integrate into the current structure of relevant recreation and program fees used by the City and the School District • Take into account those in the tax based community with free access to the facility • Create resident and non- resident differentiated rates to provide added benefits for residents ■ Develop projected participation numbers for usage and programs • Explore membership and other frequent user models that could enhance participation and revenue • Identify potential meets, games, and special events that could be hosted by the aquatic center • Competitive Events in all aquatic disciplines • Engage local, regional, and state sport governing bodies to evaluate realistic event expectations and calendar ■ Impact of events on daily school and community programming and use • Sport, swim and kids camps • Clinics Agreement No. 4668 • Birthday parties /family events • Other Review and present relevant best programming practices of similar facilities around the country Design Development • Review current aquatic center design options with Arch Pac based on programming needs and identify any design tweaks (if any) that can enhance programming and revenue generation • Enhance programming flexibility ■ Bulkheads ■ Pool configuration options • Temperature options • Depth options • Concurrent programming • Enhance programming and revenue benefits versus added project cost (Return on Investment) • Evaluate impact of each design on the following: • Programming • Events • Concurrent use • Operational cost • Revenue • Sustainability Help determine any specific equipment or systems needed to support programming • Scoreboard and timing systems • Special needs • Fitness, teaching, and recreation equipment Financial Operating Analysis and Projections • Based on programming and design scope develop financial and budget model • Develop 5 -year annual operating budget • Facility expenses (fixed expenses) • Program expenses (variable based on programs) ■ See notes in programming section • Facility Revenue ■ User fees ■ Memberships ■ Rental fees ■ Events ■ Other revenue streams • Program Revenue • Analysis of revenue and expenses for specific programs • 5 -Year profit & loss summary Develop 20 -year long range maintenance and replacement budget for aquatic center o Develop annual budget line item for fund accrual for long term component replacement Agreement No. 4668 • Review means to limit operating and maintenance costs • Evaluation of impact of state of the art technology and systems impact filtration, energy, water and environmental costs • Best operational and management practices and impact on operating costs and efficiency • Assist in identifying and forecasting other revenue streams • Sponsorship programs • Partnerships with user and community groups • Identify potential special event revenue • Help identify potential grant, community or non - profit organizational support for the facility and facility programs • Analyze event - revenue opportunities and weigh event revenue /budget projections against the added cost of building and maintaining a facility capable of hosting of various size events • Analyze economic impact • Event/sport tourism • Job creation Management • Within existing City recreation and School District structures, suggest management and staffing structure for facility • Necessary to develop the annual staffing costs of facility for budget analysis • Cost effectively optimize management of programming and operations to insure sustainability Deliverables • Program model • Detailed sample pool scheduling model based on programs and user groups • Design update recommendations • Detailed 5-year annual budget including costs, revenue, and program analysis • Includes annual set aside for replacement fund accrual • Individual breakdown of projected key program use and revenue such as learn to swim programs • Detailed breakdown of potential outside group rental and events • 20 -Year replacement and long term maintenance projections • Outline of staffing and management position needs • Summary Power Point presentation suitable for public meeting use TIMELINE The timeline for this project is flexible and can integrate into the City and School District decision making time line. ISG likes to allow an additional two weeks after final presentation of study to provide an opportunity for any follow up questions and to review next steps with the City and the School District. Overall, the study timeline would normally break down as follow: Initial research and analysis 4 weeks • Begin immediately upon execution of Letter of Intent of Agreement Agreement No. 4668 • Identify info needed by ISG from City and School District • Conference calls and interviews with City and School District leadership, stakeholders, partners, user groups, and community organizations • Initial site visit to meet with City and School District leadership, key stakeholders, and user groups • Market Research Development and initial presentation findings and recommendations 4 weeks • Presentation and review of draft program and operating financials • Follow up calls with leadership, management, and key stakeholders Final Presentation of program, design, and financials 2 weeks • On site presentation of report and findings Follow 0D and Next. SIC IDS 2 weeks TOTAL TIME ESTIMATE 12 weeks TERM OF AGREEMENT To be determined depending on projected start date. ISG is prepared to start as early as September 1, 2014. FINANCIAL CONSIDERATIONS CONSULTING FEE ISG offers to provide these services for the following fee: $12,000 plus expenses Payable as follows: • $6,000 upon acceptance of proposal • $3,000 due following initial discovery site visits, meetings, and interviews or four (4) weeks into Term of Agreement, whichever comes first • $3,000 due upon final presentation of program, design and financial analysis EXPENSES We would anticipate the need for one or two trips to El Segundo by an ISG representative as referenced in the timeline. All trips would need to be pre- approved by the City. The City would be responsible for these travel expenses, including personal auto mileage, coach /economy airfare, hotel, meals, ground transportation and any other reasonable and documented miscellaneous travel expenses. Expenses would also include any printing, photo, or postage /shipping expenses that ISG would incur in fulfilling the Services. We would not anticipate any other office or other routine expenses. Any other extraordinary additional expenses would need to be pre - approved by the City.