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HomeMy WebLinkAbout5.443 Original Contract 5. </13 ~ PORT OF PORT ANGELES 338 W. First 8t. P. O. Box 1350 Port Angeles, WA 98362-0251 (360) 457-8527 FAX (360) 452-3959 August 8, 1997 Becky J. Upton, CMC City Clerk City of Port Angeles P.O. Box 1150 Port Angeles, WA 98263-1150 Dear Becky: Enclosed IS the signed cost shanng agreement for the hotel study. Thanks. Sincerely, PORT OF PORT ANGELES ~ M. Christine Anderson Executive Director LETTER.DOC COMMISSIONERS: . Glenn Beckman . Dick Foster . Jack Waud EXECUTIVE DIRECTOR: . Christine Anderson 5.</</3 ~.- CITY OF PORT ANGELES ~ 321 Ea~t Fifth Street. PO Box 1150 Port Angeles. Washington 98362-1150 Phone (360) 417-4500 TTY Phone (360) 417-4645 Fax (360) 417-4509 Internet addre~s cnym@olympus.net CITY MANAGER August 7, 1997 M. Christine Anderson Executive Director Port of Port Angeles P O. Box 1350 Port Angeles, W A 98362 Re Cost Sharing Agreement Dear Chris: Enclosed are two copies of the revised agreement between the City and the Port, agreeing to share costs associated with the feasibility and impact study for the development of a hotel and conference center in downtown Port Angeles. Please sign both copies and return one to my attention for the City's file. Thank you for your assistance! Sincerely yours, 1 r 'QLt.~(\y Becky 1. Up10n, CMC City Clerk Enclosures , . 5, <j<j:3 COST SHARING AGREEMENT This Agreement is made and entered into this 7tA day of August, 1997, by and between the PORT OF PORT ANGELES, a Washington municipal corporation (hereafter called "Port"), and the CITY OF PORT ANGELES, a Washington municipal corporation (hereafter called "City"). WHEREAS, the Port and City desire to obtain a feasibility and fiscal impact study for the development of a hotel and conference center in downtown Port Angeles; and WHEREAS, the Port has contracted with The Chambers Group, Inc. (the Consultant) to prepare a feasibility and fiscal impact study; and WHEREAS, the City and Port desire to share in the cost of said study; NOW, THEREFORE, the City agrees to reimburse the Port for 50% of the costs associated with the preparation of the feasibility and fiscal impact study. Port and City agree that the total cost of the study will not exceed $6,500 plus expenses and City's share shall not exceed $3,250 plus 50% of any additional expenses unless the City and Port agree in writing to additional work to be performed by the Consultant. Costs for additional work would be shared equally by City and Port. As payment(s) are made by Port to the Consultant, Port will bill the City for 50% of payment. City will reimburse Port within 30 days of receipt of billings from the Port. City shall work with Port in directing the Consultant in this project and in reviewing draft reports. Port agrees to furnish City with a copy of all draft reports and the fmal report. City agrees to hold Port harmless for any claims by third parties related to the use or distribution of said report by City, its employees, subcontractors and constituents; and Port agrees to hold City harmless for any claims by third parties related to the use or distribution of said report by Port, its employees, subcontractors and constituents. A copy of the agreement between the Port and the Consultant is attached as Exhibit 1. M~{b;'Z::- Executive Director Port of Port Angeles \ \ THE CHAMBERS G R 0 U P I INC. HOSPITALITY INDUSTRY CONSULTANTS June 28, 1997 SUite 920 600 Stewart Street Seattle. Washington 98101 FAX (206) 441-1775 (206) 441-5522 Ms. Chris Anderson Executive Director, Port of Port Angeles P.O. Box 1350 Port Angeles, Washington 98362 Dear Ms. Anderson: Enclosed is a proposal to perform consulting services based on our discussions last week. As we discussed, we would perform -the engagement with Greg Easton of Property Counselors. If you have any questions, or if there are changes you would like made, please let me know. Sincerely, THE CHAMBERS G UP, INC. / Andrew N. Olsen Managing Director RECEIVED jUl '1. ~ \991 n t Angele~ OQ{ k. ot d).r. " THE CHAMBERS G R 0 U P I INC. HOSPITALITY INDUSTRY CONSULTANTS June 25, 1997 Suite 920 600 Stewart Street Seattle, Washington 98101 FAX (206) 441-1775 (206) 441-5522 Ms. Chris Anderson Executive Director, Port of Port Angeles P.O. Box 1350 Port Angeles, Washington 98362 Dear Ms. Anderson: Based on your conversations with members of our firm, we are pleased to present this proposal to perform consulting services related to the development of a hotel with conference/meeting facilities. The project's background, our approach and work plan, estimates of timing and fees, terms and conditions of the engagement, and acceptance statement follow. BACKGROUND The Port of Port Angeles controls a site on the waterfront between Oak and Cherry Streets. The 3.9 acre Oak Street site has been proposed to accommodate a hotel development. The City' of Port Angeles would join the Port in furthering the development which would ultimately be completed by a private developer. The proposed hotel is expected to be at a quality level similar to a Shilo Inn. The hotel would contain approximately 137 rooms, restaurant and lounge, and convention and conference space. In order to justify expending public funds in completing the development of the project, the public agencies involved must determine the benefits to the public of the completed hotel facility. As a result, you have requested the assistance of The Chambers Group, Inc. and Property Counselors in analyzing and quantifying the economic impact associated with the project. APPROACH A convention facility provides economic benefits to a community by attracting visitors and capturing their spending at local businesses. These benefits are "net new dollars" because they would not have been captured if the facility weren't there. Spending by other attendees simply represents a redistribution of dollars they would have spent in the community anyway. In addition to direct spending, there are two other sources of Return Copy Ms. Chris Anderson Executive Director, Port of Port Angeles Page 2 economic impact. The operating expenditures of the facility itself are also net new dollars and are a direct impact. In addition to direct impacts, there are indirect and induced impacts, which reflect the circulation of direct spending through the economy. This phenomenon is often referred to as the multiplier effect. The direct and indirect impacts take the form of business receipts, jobs, and personal income and tax payments to state and local government. We would estimate these impacts through four sequential tasks. Task Descriptions 1. Describe Project Elements a. Facility size and components: hotel rooms, meeting room size and capacity. b. Capital investment: taxable construction expenditures. c. New visitor activity: facility users by type and size of event. 2. Estimate Direct Impacts a. Visitor spending based on average spending per day figures from International Association of Convention and Visitors Bureaus (IACVB.) b. Facility operations based on operating proforma c. Aggregate impacts for area businesses, households, and workforce. Business receipts Personal income Employment Tax receipts 3. Indirect and Induced Impacts a. Estimate multipliers using Bureau of Economic Analysis Regional Impact Modeling System (RIMS). b. Estimate total impacts through application of multipliers for each sector of direct impact. 4. Provide Written Documentation a. Summarize findings and conclusions, including methodology and sources. We will not prepare a detailed market analysis for the proposed hotel as part of this engagement. We will, however, rely upon analysis of the future operations of the hotel which have already been prepared for the Port. TIMING. FEES. RETAINER. AND EXPENSES Our fees will be based on the actual amount of time spent in the performance of the study at our standard rates plus out-of-pocket expenses. Based on our experience with similar projects, we estimate the fees for the engagement will be $6,500. This fee should be The Chambers Group. lnc Ms. Chris Anderson Executive Director, Port of Port Angeles Page 3 considered a fixed fee unless the scope of our engagement changes, at which time a revised proposal will be issued which will outline the new scope and any additional fees. Computer processing, typing, report production, travel and maintenance, and other out-of- pocket expenses are not included in this estimate. Expenses are estimated to be approximately five percent (5%) of fees. We will submit a draft of our summary report to you within three weeks of beginning the engagement. After receiving your comments, we will then finalize the summary report and submit it to you within one week. TERMS & CONDITIONS The results of our analysis will be based on estimates and assumptions which are inherently subject to uncertainty and variation depending upon evolving events. Some assumptions inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results will vary from those described in our findings, and the variations may be material. The data used in our research will be presumed to be reliable; however, no responsibility, whether legal or otherwise, will be assumed for its accuracy, nor can it be guaranteed as being certain. Under the terms of this engagement, we will have no obligation to revise our findings to reflect events or conditions which occur subsequent to the date reflecting our final date of field work. However, we will be available to discuss the necessity for revision resulting from changes in economic or market factors affecting the subject. We will not ascertain the legal and regulatory requirements applicable to the lodging market area. Further, no effort will be made to determine the possible effects of future federal, state or local legislation including any environmental or ecological matters or interpretations thereof. Our findings are intended for the Port of Port Angeles and the City of Port Angeles. None of the information may be referred to or quoted in any registration statement, prospectus, appraisal, or other agreement or document without written consent of The Chambers Group, Inc. Liability associated with this engagement, if any, is limited to the dollar amount of the total fees for this engagement, and is limited to the client only. We have no obligation or accountability to any third party. If our findings are distributed to anyone other than the Port of Port Angeles or the City of Port Angeles, you will make that party aware of all limiting uses and conditions of the engagement. If work is suspended by you for a period of thirty (30) days or more, we reserve the right to adjust our fees before work resumes. In addition, completion and delivery dates may be affected by these delays. The Chambers Group, Inc. . v . Ms. Chris Anderson Executive Director, Port of Port Angeles Page 4 The terms of this proposal are valid for sixty (60) days from the date of this letter. ACCEPTANCE OF PROPOSAL You may indicate your acceptance of our proposal by signing the enclosed copy of this letter and returning it to us together with the retainer. We will begin our engagement as soon as scheduling permits. We thank you for the opportunity to submit this proposal and look forward to working with you on this project. If you have any questions regarding the scope or interpretation of our proposal, please contact us. Sincerely, THE CHAMBERS GROUP, lNe. Andrew N. Olsen Managing Director APPROVED: /1 /J By: (L~ Date: ~V -? / /'77 eIMD/Proposal/PortofP A The Chambers Group. Inc.