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HomeMy WebLinkAbout5.125 Original ContractMEMO: June 1, 1984 TO: Mayor Duncan Port Angeles City Councilmembers FROM: Dave Flodstrom, City Manager 6, a S SUBJECT: Update of the Ellerbe report Dealing with the Construction of a Civic Center at the Site of the Vern Burton Memorial Community Center I've contacted Mr. Gordon edberg and Mr. Bob Christianson of Ellerbe and Associates and asked that they first provide me with a cost estimate for prepar- ing an update of their 1982 cost estimates and secondly, if the cost of the update was reasonable, the City would then ask Ellerbe and Associates to proceed with that cost update. Mr. Christianson of Ellerbe and Associates called me back and informed me that they would be more than happy to perform the update of their 1982 study and the estimated cost would be approximately $200. Because of the Council's desire to have that update provided to them at the June 5th meeting, I authorized Mr. Christianson to proceed with the update based on the $200 estimate and to send a letter contract to me for the Mayor's signature, stipulating the scope of work and the $200 price which we would approve upon its arrival. Since our initial meetings, I have further met with Mr. Gordon Edberg and Mr. Bob Christianson to go over the 1982 report and any changes that may have occurred since the final report was produced. Both Mr. Edberg and Mr. Christianson have assured me that the updated figures will be available to me and the City Council prior to our meeting on June 5th. Unfortunately, I have yet to receive those numbers and therefore cannot include the updated cost figures in the Council's agenda package being sent out on June 1st. However, I am confident that Mr. Edberg and Mr. Christianson will have those numbers available for the Council's consideration on Tuesday, June 5th. Based on my conversations with Mr. Christianson, it is reasonable to believe that we can expect somewhere between a five and six percent increase per year in the 1982 costs contained in the report. While I have, again, not received the updated figures, I think it is reasonable to believe that we can expect the 1982 construction costs of 1.6 million dollars to be approxi- mately 1.9 million dollars in 1985. I've also asked Rob Orton to update his projections on the status of the City's accumulated and to be accumulated revenues from the Hotel /Motel tax. Based on Rob's most recent review of the Hotel /Motel tax, it is antici- pated that the fund would contain approximately $450,000 by early 1985 (antici- pated project construction). It is important that I have an opportunity to look at the cost projection update before I can suggest to the Council the levels of any future bond issues to be placed before the voters. The original estimates in the 1982 report included funds for the roofing work which has already been concluded; however, we now have additional property which may need to be considered for development. I hope to have had the opportunity to review the updated costs in some detail prior to the Tuesday night, June 5th meeting and provide some additional infor- mation to the Council at that time. nr /4,, Thanks. Architects Engineers Planners 3025 One Union Square Seattle WA 98101 206 625 0666 3; T)11_00.0 May 25, 1984 Mr. Dave Flodstrom City Manager City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 Dear Mr. Flodstrom: Proposal for Professional Service Port Angeles Community /Civic Center Port Angeles, Washington Ellerbe Architects and Engineers is pleased to submit this proposal for professional services to the City of Port Angeles for the above referenced project. BASIC SERVICES Ellerbe shall provide an updated cost estimate for this Project: COMPENSATION For services rendered, Ellerbe will be compensated on the basis of a lump sum of two hundred dollars ($200). Any Additional Services beyond the scope of Basic Services will be performed upon written notice from the Owner and will be compensated for on the basis of two and one -half (2.5) times Direct Personnel Expense plus reimbursable charges. Direct Personnel Expense is defined as the direct salaries of all Ellerbe's personnel engaged on the Project and the cost of their mandatory and customary contributions and benefits related thereto, such as employment taxes and other statutory employee benefits, insurance, sick leave, holidays, vacations, pensions, profit sharing, and similar contributions and benefits. Reimbursable Charges include the cost of travel and out -of -town living expenses, long- distance communications, reproduction and mailing, data processing and photographic production techniques, and any state or local taxes imposed where the Project is located. Li Ellerbe Architects Engineers, Gordon H. Edberg, AIA, Partner; Ellerbe Associates, Inc. Offices In: Minneapolis MN Washington DC New Orleans LA Austin TX Fairbanks AK Seattle WA 6idg5- Mr. Dave Flodstrom May 25, 1984 page two SCHEDULE The time for completion of Basic Services is estimated to be two weeks after the authorization to proceed with this project. OTHER TERMS Payments for professional services rendered and for reimbursable charges will be made monthly upon presentation of Ellerbe's statement. Payments due Ellerbe under this Agreement will include a service charge of one and one -half percent (1.5 per month or the maximum permissible by applicable law, whichever is less, on any amount not paid within thirty (30) days after the date of billing. TERMINATION This Agreement may be terminated by either party upon seven (7) days' written notice should the other party fail substantially to perform in accordance with its terms through no fault of the party initiating the termination. In the event of termination not the fault of Ellerbe, Ellerbe shall be compensated for all services performed to termination date, together with reimbursable charges then due and all termination charges. This letter is the entire Agreement between the Owner and Ellerbe. Changes or additions in this Agreement must be in writing and must be signed by both the Owner and Ellerbe. Acceptance of this Agreement by separate instrument is limited to the terms hereof, and Ellerbe hereby expressly objects to any different or additional terms contained in the Owner's instrument of acceptance, whether in form of purchase order, acknowledgement, acceptance or other document. If this Agreement is satisfactory, please sign, date and return one copy to us as our authorization to proceed. Respectfully submitted, ELLERBE ARCHITECTS AND ENGINEERS Gordon H. Edberg, AIA, Part Accepted by: CITY OF PORT ANGELES OWNER MAYOR TITLE Autumn Harry D. Kinzer President PRESIDENT'S MESSAGE To be elected President of the Washington Finance Officers Association is truly an honor, and I am extremely proud and happy that the membership has entrusted me with this responsibility. It is ironic that when you are a board member or an officer, you never realize the kind of responsibility you will take on as president. During the 1982 -83 year we have the advantage of a slate of highly qualified officers to assist in the guidance of the Association. I feel it is important that you have access to the officers and board members of your Association, therefore, I have listed them within my message for your immediate reference. President Harry Kinzer, Walla Walla President /Elect Pete Fortin, Spokane First Vice /President Nancy Gratias, Winlock Treasurer Linda Miller, Davenport Secretary Larry Martin, MRSCW, Seattle Board Members: Art Housler, Edmonds Peter Luttropp, Tacoma Tom Riffe, Longview Dick Scott, Bellevue Kent Shorthill, Vancouver Georgette Wendt, Medical Lake Ex -Officio Members: Bill Lavagnino, Assistant State Auditor M. Lyle Jacobsen, Assistant State Treasurer I would like to take a moment to welcome Georgette Wendt, City Clerk- Treasurer, City of Medical Lake; to the Board of Directors of our Association for a three period. Also I would like to welcome Art Housier, Finance Director, City of Edmonds, to our Board for a one year period. We had an extremely successful convention at the Thunderbird Quay in Vancouver with 248 members in attendance. We have had some very good comments as to the quality of the speakers in the workshops and the material that was presented to those members in attendance. It is the Board's endeavor to continue to improve the quality of our annual conferences. Should you have any additional criticism or requests for the 1983 conference, please forward those to either myself or one of the board members. A great deal of thanks and appreciation is extended to Kent Shorthill, Finance Director, City of Vancouver and his staff as the local chairman that really put together the conference for 1982. Washington Municipal Finance Letter November, 1982 PROPERTY TAX FOR ARTS, STADIUM AND CONVENTION DISTRICTS (Ch. 22, Laws of 1982, 1st Ex. Sess.) S.H.B. 1156 (1982 session) provides for the creation of another political subdivision the cultural arts, stadium and convention district. Boundaries could include more than one city, portions of the unincorporated area of the county, the entire county, or intercounty. Upon approval by a simple majority of the voters, the district would be empowered to acquire, construct and operate such facilities for the benefit of the local residents as well as to encourage tourism. The State Planning and Community Affairs agency must review the comprehensive plan adopted by the district. Several methods of financing are contained in the statute. A district can issue general obligation bonds up to three eighths of 1% of the current assessed value of the taxing district without approval by the voters. Revenue bonds funded by gross income from the arts, stadium and convention facilities are authorized. Additional G.O. debt capacity is authorized, only for capital purposes, not to exceed three fourths of 1% of the current assessed valuation when approved by 60% of the voters in accord with RCW 84.52.056 and Article VIII, Section 6 and Article VII, Section 2 of the Constitution. The powers provided in RCW 67.28.160 are also authorized. A regular property tax levy is authorized if approved by the voters of the district by the same voting requirements established for special levies. The maximum property tax rate is twenty -five cents per $1,000 of assessed valuation, and once approved, it would be levied for six consecutive years without further approval by the voters. Revenue from such regular levy would be subject to the 106% limit after the initial year. These funds could not be pledged for bond purposes. An excess levy for M. O. purposes, in accord with RCW 84.52.052 is also authorized for cultural arts, stadium and convention districts. This is a one -year levy in accord with Article VII, Section 2 of the Constitution. Before any contract for the lease or operation of any cultural arts, stadium and convention district facilities shall be let, competitive bids must be invited upon such notice, bidder qualifications and bid conditions as the district shall determine. The governing body of a cultural arts, stadium and convention district has the power to fix rates and charges for the use of such facilities, among other things. The statute allows cities and counties to contribute revenues received from the local hotel /motel tax under RCW 67.28.180 (2% of the state retail sales tax on lodging) to the cultural arts, stadium and convention district in which they are included. continued on page 3 MINUTES OF THE ANNUAL BUSINESS MEETING OF THE WASHINGTON FINANCE OFFICERS ASSOCIATION Place: Vancouver, Washington Thunderbird Quay Date: Thursday, September 16, 1933 1:00 p.m. Beverley Schirman called the annual business meeting of WFOA to order, first introducing a number of guests including, but not limited to: Barbara Henderson, current President of the California Finance Officers Association; Mary Cook, board member of the Municipal Finance Officers Association of the U.S. and Canada; and Denise Dornfeld, acting Executive Director of MFOA who delivered an interesting presentation. Committee reports followed including the legislative committee, education committee, resolutions committee, newsletter committee, data processing committee, WFOA treasurer, annual financial report awards, membership committee, nominations committee, state auditor representative, state treasurer representative. It was announced that current MFOA certificates of conformance for the annual financial report have been issued to the cities of Edmonds, Kent, Seattle, and Clark County. It was announced that MFOA certificates for Professional Achievement Recognition (known as PAR) have been awarded to Mary Cook, Jack Kiley, and Roland Malan. Announcement was also made that the annual MFOA conference in 1983 will convene in Toronto between June 12th and June 15th. The nominations to office for the 1982 -1983 year, to represent WFOA as reported by the nominating committee are: President Harry Kinzer, Walla Walla President Elect Pete Fortin, Spokane First Vice President Nancy Gratias, Winlock Treasurer Linda Miller, Davenport Board Member Tom Riffe, 3 years, Longview Board Member Georgette Wendt, 3 years, Medical Lake Board Member Art Housler, 1 year, Edmonds It was moved, seconded, and carried unanimously by the membership_ that nominations be closed and a_unanimous ballot be cast for the committee nominations, as aforesaid. Officers and board members with continuing terms of office are as follows: Board Member Kent Shorthill, Vancouver (expiring September 1983) Board Member Peter Luttropp, Tacoma (expiring September 1984) Board Member Dick Scott, Bellevue (expiring September 1984) Secretary Larry Martin, MRSCW in Seattle Ex -Officio Board Member Bill Lavagnino, Assistant State Auditor and Representative of the State Auditor's Office Ex -Officio Board Member M. Lyle Jacobsen, Assistant State Treasurer and representing the State Treasurer's Office Annual Financial Report awards were presented for the 1981 fiscal year to King County and Thurston County. Eldon Marshall, retiring City Supervisor of the City of Olympia was granted an honorary lifetime membership in WFOA. Eldon is one of the founders of the organization. A resolution was presented, being a WFOA resolution supporting an amendment to the constitution of the state, specifically SJR143 which is on the November 1982 general election ballot. Such amendment would allow community redevelopment financing formerly known as tax increment financing. Adoption of the resolution was moved, seconded, and carried. Meeting adjourned at 2:30 p.m. MINUTES OF THE BOARD MEETING OF THE WASHINGTON FINANCE OFFICERS ASSOCIATION Place: Vancouver, Washington Thunderbird Quay Date: Friday, September 17, 1982 12:00 p.m. PRESENT s s s s s s s s November 1982 Lavagnino, Riffe, Luttropp, Wendt, Martin, Kinzer, Gratias, Scott, Shorthill, Schirman, Fortin, Miller ABSENT M. Cook, Bannerman, Housler (just appointed and not in attendance at the convention), Jacobsen, also just named. The President went around the table one by one asking for observations and comments on the convention just concluded. The vast majority of the opinions expressed indicated that the convention was very well received. Moved, seconded, and carried that the preliminary WFOA budget for 1982/83 be adopted. The new President, Harry Kinzer, Director of Finance and Administration for the City of Walla Walla announced committee appointments as follows: Annual Financial Awards Art Housler Annual Convention Chairman Pete Fortin Data Processing Committee Dick Scott Education Committee Tom Riffe Historian Georgette Wendt and Linda Miller Legislative Committee Peter Luttropp Membership Committee Chairman Georgette Wendt Newsletter Committee Larry Martin Nominations Committee Nancy Gratias Resolutions Committee Kent Shorthill Convention Site Selection Committee Nancy Gratias The membership dues schedule was discussed. Topics included whether the membership fee should be for a particular person continued on page 3 continued from page 1 Section 20 permits a new local tax on hotel, motel, rooming house, tourist court, or trailer camp accommodations. This authority is granted only to cities with a population between 25,000 and 399,999; counties may not levy the tax. The maximum rate of the city hotel /motel tax is 3.0% but lower rates are allowable. This tax is additional to the 2% special excise tax previously in effect and may be used only for convention or trade facilities. The tax applies only to charges for lodging of less than one month in duration by hotels, motels, and similar establishments with at least 15 lodging units. The tax is in addition to all other state and local taxes on accommodations. The measure does not mandate collection of the tax by the state, but cities may contract with the Department of Revenue for administration as provided by Ch. 82.14 RCW. Funds from the new city hotel /motel tax may be used only for acquisition and construction of convention or trade facilities; thus, it is similar to the King County hotel /motel tax established by Ch. 34, Laws of 1982. Revenues from this source'could not be devoted to cultural arts or stadium facilities only convention or trade centers. If cultural arts, stadium and convention districts are levying property taxes which, in combination with other property taxes, exceed the 1% constitutional limitation, the cultural arts, stadium and convention district property tax must be reduced or eliminated before the property tax levies of other taxing districts are reduced. (Effective July 10, 1982) Minutes continued from page 2 or whether for a particular position so that a newly appointed person could enjoy the membership paid on behalf of his or her predecessor during the course of the year. The question of multi- nemberships for entities was also discussed and whether a city which wanted several staff members to attend and participate should pay full price for each person. Any decision on these questions was postponed until the January meeting of the board. The Treasurer's term of office was also discussed briefly, as to whether it should extend for more than one year and this issue was postponed until January. The next WFOA convention is scheduled for the Pasco Red Lion between September 22nd and September 24th, 1983. As indicated in the preceding minutes, the date for the 1984 convention, to be held at the Bellevue Red Lion, has been advanced to the first week of September. The WFOA board ineeting schedule for the 1982 -1983 year is as follows: January 20 21, 1983 Double Tree Plaza Inn, Seattle April 21 22, 1983 Red Lion Motor Inn, Bellevue July 21 be 22, 1983 Red Lion Motor Inn, Pasco Meeting adjourned at 2:15 p.m. Respectfully submitted, Layirence K. Martin Secretary PRESENT MINUTES OF WFOA BOARD MEETING Place: Vancouver, Washington Thunderbird Quay Date: Tuesday, September 14, 1982 M. Cook, Shorthill, Kiley, Schirman, Luttropp, Riffe, Miller, Kinzer, Fortin, Gratias, Scott, Martin, Bannerman, Lavagnino, H. Cook ABSENT None The minutes of July 22nd and 23rd, 1982 were approved as submitted by the Secretary. The Treasurer reported that there are now 433 paid members including 42 new members through conference registrations. The Treasurer's Report covering September 1981 through September 1982 was 'approved as submitted. Art Housler, Finance Director of the City of Edmonds, was nominated as a board member for a one year term to fill the unexpired portion of Linda Miller's term. It was moved and carried that Jim Bannerman, Data Processing Director of the City of Bellingham, continue as MFOA State Representative for another year until December 1983. A motion carried that the 1984 WFOA Conference, to be held at the Bellevue Red Lion, be scheduled for September 5, 6, and 7 rather than the third week of September. The 1983 convention was confirmed for September 22, 23, and 24 at the Pasco Red Lion. All of the last minute arrangements for the current conference were discussed and described by members responsible for the various details. Meeting adjourned at 11:45 a.m. i i Y i PERSONNEL CHANGES As of August 13, 1982 Eileen Tauscher is the new City Clerk/Treasurer of Oakville replacing Denece Ralston (formerly Grimm). I have been appointed to fill the unexpired term of City Comptroller Francis Peck. I had been the Deputy Comptroller. Fred Thurman has been hired as the new city Chief Accountant. He had been the Finance Director at St. Joseph Hospital in Aberdeen. Vern Spatz Comptroller, Aberdeen SOME IDEAS ABOUT COMPUTERIZATION FOR SMALL CITIES AND TOWNS by Bill Crosby In the past two or three years the microcomputer has made computerization a reality for small cities and towns. There are, however, some real problems facing the city staff in making the decision to computerize, or not to computerize. A couple of the really big problems are; "What computer and what programs should the small city or town have And what's more; "How does the Clerk /Treasurer with little or no computer training cope with the installation It's hard enough to keep up with the day to day work schedule without worrying about a computer that is supposed to save time and work. Computer "experts" generally know all about the computer (especially the one they are selling) but fail to understand the small city environment, the difference between the normal Single Entry system, the "Cook Book" Cash Basis system and Double Entry Accounting in cash versus budget accounting, or the complexities of the BARS Accounting system. The most frustration is in realizing that every one who talks to you about a computer is trying to sell you something. When someone is trying to sell you something they quite naturally will slant what they are saying toward what they are selling. Makes sense, right? That's the free enterprise system, so let's not knock it. Without it we would all be standing in line to buy food. The question is, how do we cut through the salesmanship and get down to what we really need to know. Let's look at some ways of doing just that. OFFICERS: SELECTING SOFTWARE Which comes first, the computer or the software? The software of course. It is difficult to imagine a situation in which it would be practical for a small city or town to do otherwise. It is much easier to select the right computer than to select the right software. Most popular brands of computers are WASHINGTON MUNICIPAL FINANCE LETTER 4719 Brooklyn Avenue NE, Seattle, WA 98105 Published quarterly in February, May, August, and November by Washington Finance Officers Association Harry Kinzer, Walla Walla President Pete Fortin, Spokane President /Elect Nancy Gratias, Winlock Vice President Larry Martin, MRSCW (Seattle) Secretary Linda Miller, Davenport Treasurer DEADLINE: 5th of February, May, August, November good computers. I don't know if I can say the same about the programs, or software, that goes into them however. In most cases where the computer is blamed for an error, it's not the computer it's an error in the program that was written to process the information through the computer. There are some ready made programs available, but they can be very hard to evaluate. In evaluating don't just evaluate the product, evaluate the company (or person). Also, when evaluating, don't take the word of the person who is trying to sell you on the product, ask for references. This applies not only to those who are outside commercial vendors but to other cities who have developed a system as well as other ventures such as college and university efforts using student programmers. Listen to them and ask a lot of questions. Get your questions ready before you talk to them. Find out who else is using the system and talk to them. If no one else is using the system, watch out. Being a pioneer can cause you a lot of grief. How do you know you have a good program? That's a tough one to answer. There are a number of ways to determine this. Some of them may even work. Here are some questions to ponder: Has any other city used this program? How much does the program developer know about small cities? How much does the program developer know about my job? How much experience has he at programming? How long has he been in the computer business? Does he have a good reputation? How long is he likely to be around? (This is the tough one.) What do I do if he is not around? NOTE: The remaining half of this article will be printed in the February WFOA Newsletter MARIAN PARRISH CLERK CITY OF PORT ANGELES 140 W FRONT PORT ANGELES WA 98362 r S C e NOV30'82 'V:- g a .2 D 10353 AGREEMENT FOR CONSULTING SERVICES BE IT KNOWN, that effective on the t' day of MA(244 1982, the City of Port Angeles, Washington, whose address is 140 West Front Street, Port Angeles, Washington 98362, (hereinafter referred to as "City and Event and Facility Consultants, Inc., an Oregon corporation, whose address is 4205 South West Downsview Court, Portland, Oregon, 97221 (hereinafter referred to as "Consultant do hereby enter into a profes- sional services contract under the following terms and conditions: W I T N E S S E T H: WHEREAS, the City requires the services of Consultant with respect to the development of plans and management for a proposed Convention Community Center; and WHEREAS, Consultant by reason of his expertise and experience is capable of rendering such consulting services; and NOW, THEREFORE, the City and the Consultant for and in consideration of the convenants and agreements hereinafter set forth, mutually agree as follows: Section 1 In consideration of the services agrees to pay Consultant on the basis billed, including travel time, at the per hour, plus out -of- pocket expenses /Z5 Consultant hereby agrees to furnish consultation on all aspects of planning design and operations related to the construction, operation, and management of the proposed Center, as requested by the City or its designated representatives, including in particular the following services: a. Assist the City and /or its architects in interpretation of recommended program as impacted by existing facilities. b. Advise architects in development of schematic plans. c. Monitor development of schematic plans as they relate to operation and function. Evaluate and prioritize, if necessary, program features to be included. d. Provide continuing review of architectural drawings and specifi- cations. e. Develop movable equipment inventory and provide budget estimates. f. Provide operational cost estimates and update as necessary. Section 2 described above, the City hereby on monthly statements for time rate of Fifty -five Dollars $55.00) not to exceed Five Thousand Dollars 1 ($5,000.00) without prior authority by the City or its duly appointed representative. Section 3 This contract may be terminated by either party upon thirty (30) days written notice. In the event of termination, Consultant shall be compensated as provided herein, for services performed to termination date. Section 4 Travel undertaken by Consultant and other out -of- pocket expenses will be reimbursed at cost upon submittal of a list of such expenditures with appropriate documentation. Section 5 The City shall make payments of monthly billings submitted by consul- tant by approximately the 30th of a given month provided said billing is submitted to the City no later than the first of said given month. Section 7 All notices to the parties shall, unless otherwise requested in writing, be sent to the City and the Consultant at the addresses shown above. -2- Agreement for Consulting Services Section 8 All field work to be performed by Consultant in connection with the services described above shall be performed exclusively by Don Jewell. IN WITNESS WHEREOF, the parties have caused this agreement to be executed on the day and year first written. ATTEST: CITY OF PORT ANGELES TITLE: C A, IV 6 ATTEST: EVENT AND FACILITY CONSULTANTS, INC. TITLE: ge ati:12.„ October 5, 1981 NOTICE OF MEETING The City Council of Port Angeles will hold special meetings on October 7, 1981 and October 8, 1981 in the City Council Chambers at 134 West Front Street, Port Angeles. The purpose of the meetings is to conduct interviews with four firms for the interior design work on the Vern Burton Memorial Community Center facility. Two firms will be interviewed on October 7, 1981 commencing at 9:00 A.M., with the remaining two firms being interviewed on October 8, 1981 starting at 10:00 A.M. Distribution: Mayor Council Clallam County Commissioners Manager Flodstrom Department Heads The Daily News News Editor The Chronicle News Editor KONP Radio Station KAPY Radio Station Marian C. Parrish City Clerk October 2, 1981 Mayor and Members of the City Council Dave Flodstrom, City Manager S,IA.. MEMO: TO: FROM: SUBJECT: Consultant Interviews for the Schematic Design Phase of the Convention /Community Center The City of Port Angeles has solicited and received consultant proposals for the schematic design phase of the convention center from seven consulting firms interested in the project. With the assistance of Don Jewell, four finalists firms have been selected for interviews before the Port Angeles City Council. Those firms are: DF /jg Thank you. BJSS Port Angeles Makers Associates Seattle Ellerbe Associates Seattle Walker, McGough, Fultz Lyera P.S. Spokane As the Council already knows, Mr. Jewell will be in Port Angeles on October 7th and 8th to attend meetings in the east and west ends of our county. It is hoped that while he is in Port Angeles to present the results of his study to the east and west end residents, that we could also conduct the interviews for the four above-mentioned firms. To this end, I would propose the following schedule: BJSS and Makers would be interviewed the morning of October 7th and Walker McGough and Ellerbe would be interviewed the morning of October 8th. Interviews would take place between the hours of 9 and 10:30 both mornings and would be limited to 30 minutes for each firm. I realize that this is very short notice and if the Council is at all uncomfortable in proceeding with this time schedule, I will make arrange- ments for Mr. Jewell to return to Port Angeles at some later date so that he will be available should the Council wish his assistance during the interviews. I Call to Order II Roll Call III -VII Suspended VIII Legislation IX -X Suspended AGENDA Port Angeles City'Council Special Meeting September 29, 1981 7:00 P.M. 1) Ordinance amending L.I.D. No. 203 (Downtown L.I.D.) Ordinance 2157 2) Consideration of extending contract with Mr. Don Jewell. 3) Consideration of design elements of Phase II of the Downtown Beautification Project. XI Adjourn. MEMO: September 24, 1981 TO: Mayor and City Council FROM: Dave Flodstrom, City Manager RE: Continuation of Contract for Don Jewell's Services At the August 18, 1981 City Council meeting Mr. Don Jewell delivered a summarized presentation of his feasibility study of a convention/ community center in Port Angeles. Following Mr. Jewell's presentation, Mr. Jewell recommended and the Council concurred that the next step in the process would be to determine the usabality of the Vern Burton Memorial Community Center as a convention facility serving the North Olympic Peninsula. Specifically, Mr. Jewell recommended the following steps be taken: 1) Identify maximum funding available for the project, 2) Develop budgets, identifying construction, movable equip- ment, and start -up costs, 3) Select and engage an architectural firm with particular expertise in interior design to undertake identification of program items that can be achieved with available construction dollars, and 4) If preliminary schematics construction estimates are acceptable, the same architectural firm should be authorized to proceed with design development. Rob Orton, Director of Administrative Services has prepared the attached information regarding the funding of a convention /community facility using the available City /County Hotel -Motel tax funds. Next, it would be necessary to take on actions two and three as recommended by Mr. Jewell. In order to accomplish this I would recommend to the City Council that we extend Mr. Jewell's existing contract to include the following services: 1) Assist Port Angeles in the selection of an architectural firm with particular expertise in interior space design. It would be the responsibility of this firm to identify the spacial capabilities of the Vern Burton Memorial Community Center through the development of schematic drawings. It would also be the responsibility of this firm to determine probable costs of remodeling and /or new construction at the Vern Burton site. 2) Mr. Jewell would be asked to assist the selected firm in determining the most appropriate architectural program including spacial relationships which could be accommodated at the Vern Burton site. September 24, 1981 Continuing Contract for Don Jewell's Services Page two I have briefly discussed this scope of work with Mr. Jewell and he has indicated that he would agree to continue providing his services on the basis that his costs would not exceed $5,000.for the above outlined work. To date the City of Port Angeles has paid Mr. Jewell $7,500 and Clallam County has paid Mr. Jewell $2,500. It is anticipated that if we were to extend Mr. Jewell's contract, that $5,000 would be paid to Mr. Jewell with completion of the above outlined work and also a fee would be necessary for the services of an interior design firm. I have approached the Clallam County Commissioners regarding their interest in continuing to share the cost of Mr. Jewell's services, and also the costs of the interior design firm should one be selected. At this point the Clallam County Commissioners are reluctant to proceed without further support for the convention's last community center project from both the extreme west and east ends of Clallam County. In order to assist the County Commissioners in assessing the east and west end support for the project, Mr. Jewell has agreed to come to Port Angeles on October 7 and 8 and accompany Clallam County Commissioners and representatives of the City of Port Angeles to meetings in Forks, Clallam Bay and Sequim. The purpose of these meetings will be to deliver the findings of Mr. Jewell's study and to respond to generated questions, much as Mr. Jewell did at the Council Meeting of August 18. Hopefully upon the completion of these meetings the County Commissioners will receive positive indications from citizens in both the east and west end of our County-and will feel more comfortable in proceeding with the joint funding of this next phase of work. In summary, I would ask that the City Council would authorize me, the City Manager, to initiate a contract with Mr. Jewell covering the above scope of work the not to exceed $5,000 figure. It would be my intent to continue to pursue a sharing of the costs with Clallam County as was the case in the second phase of the study. ml 3) Develop budgets identifying construction costs, movable equipment costs and facilities start -up costs. 4) Examine alternatives such as phasing the project, construction of a totally new center on the site, or abandonment of the project at this time. 5) If preliminary schematic and construction estimates prove acceptable to the City Council, Mr. Jewell would be utilized to assist the City during the final design stages of the project. MEMO: September 23, 1981 TO: Dave Flodstrom, City Manager FROM: Rob Orton, Director of Finance Administrative Services RE: Financing for the Convention Center Dave: Sometime ago you requested that I update our alternatives for the Convention Center financing. I have attached a listing showing current fund balances as of August 31, 1981 in both the City and County and a reiteration of the estimated annual receipts of both governments. I believe that in today's market we can anticipate selling a $300,000 to $500,000 bond issue in a fifteen year term for around 14% net interest.' The City's annual receipts could service a debt of approxi- mately $356,000, while our sources combined with the County's could raise a bond issue of approximately $473,000. Perhaps the most important portion of this analysis is contained in section five of the attachment. Combining the total resources of both the County and the City, I believe that we could raise a construction budget in excess of $1,000,000. This is pretty much as I reported it in April 1981, when last I looked at the situation. As you can see from the attachment, the construction budget is net of the balance owing to Don Jewell as well as the last two installments for the Clallam County Museum. I have also deducted estimated marketing costs for the bond issue. It is important to note that I have assumed that the City or County will incur no interim financing costs for the Convention Center construction. This is to say.. that._we _would fund a portion of 'the construction budget out of the existing fund balances until such time as the bond issue was sold. Of course, if we decided to issue warrants to obtain interim financing, interest costs would be a factor which I would have to plan into the analysis. Please let me know if you need any other data.regarding this issue. Thanks. ml cc: Jack Pittis, Director of Public Works Pat Rodman, City Treasurer Bud Rudolph, Senior Accountant 1) Current Fund Balance (8/31/81): 2) Estimated Annual Receipts: (a). Tax Revenue (b) Interest Income CONVENTION CENTER FINANCING 3) Other Sources: Unexpended General Fund Budget (Parks) 4) Potential Bond Issue Serviced by Annual Tax Revenues (a) City only: Annual Receipts $55,000 Interest 3,000 Total $58,000 Bond Issue: 15 years @°140 $356,000 (b) City combined with County: Annual Receipts $72,000 Interest 5,000 Total $77,000 Bond Issue: 15 years 14% $473,000 5) Potential Construction Budget, City and County Sources Combined: Estimated Fund Balances at 12/31/81: Add: Proceeds of Bond Sale 473,000 City County 358,512 155,099 55,000 20,000 10,000 (a) City $380,000 (b) County 160,000 (c) City General Fund 10,000 Sub -total $550,000 Less: Anticipated Expenses (a) Don Jewell (City and County) (5,000) (b) Clallam County Museum (2,400) Sub -total (7,400) Adjusted Fund Balance $542,600 Less: Marketing Costs for Bond Issue (7,500) Add: Interest on Construction Capital 15,000 Total Estimated'Construction Budget $1,023,100 (1) Source: Clallam County Auditor's Office (2) Fund balances are after payment of consultant costs and first two installments to museum. (3) Assumes average monthly revenue annualized for balance of 1981. (4) Assumes no interest cost for interim financing. 17,000 18,000 -0- FROM THE DESK or, ARRISH MARIAN CITY CLERK -vtpl -ty tt" 24;144- c epi-e-v cam` Prepared for: CITY OF PORT ANGELES 140 West Front Street_ Port Angeles, WA 98362- 3 PORT ANGELES CONVENTION /COMMUNITY CENTER STUDY First Draft August 1981 8. 8. Sr/ eovv4 /1 i 6/f4J4 -ri/E W ,fi 1461e5641 c4# A'/as EVENT FACILITY CONSULTANTS Portland, OR 97221 q1 r' TABLE OF CONTENTS SUBJECT Page I ntroduction 2 Summary Findings 3 Executive Summary 6 Sectors of the Meeting Market 10 The Washington State Convention 14 Potential Convention Market 16 Facility Program 22 Revenues and Expenses 33 1 Event Facility Consultants A basic objective of the study was to determine the attitudes of poten- tial users of the facility toward Port Angeles and the Olympic Penninsula as a site for state and regional meetings. At the same time, INTRODUCTION This report presents findings, recommendations and conclusions relative to the probable utilization and marketability of a convention /conference center in the City of Port Angeles. It has been performed under an agreement dated June 4, 1981. it is our intent to_.identify specific needs of the target market. The Scope of Work has included: Identification of project objectives. Surveys of the assumed market. Recommendation of an appropriate spatial program. Estimates of probable operational costs and revenues. Identification of project alternatives. Identification of _economic benefits for both Port Angeles and the unincorporated areas of Clallam County. We are most grateful- for the assistance of David Flodstrom, City Manager and Don Frizzell, Director of Parks and Recreation, and mem- bers of the staffs in the gathering of information for this study. It has been a pleasure working on this aspect of the project and we are hopeful of findings herein will provide both the confidence and en- couragement to proceed. EVENT FACILITY CONSULTANTS 2 Event Facility Consultants SUMMARY AND FINDINGS Creation of a modern, properly designed and equipped conference 3 community center in Port Angeles should prove an economic stimulator to the business community and at the same time improve the quality of life for residents of Port Angeles and Clallam County. Ideally, project objectives should include not only development and construction of facilities but also their location at a site offering the opportunity for additional community benefits. Although the geographic location of Port Angeles in the state will pro- bably remain a constant negative factor in the marketing of the city as a convention /conference site, an encouraging percentage (65 of assoc- iations responding to the survey conducted by Event Facility Consultants indicated they would seriously consider the city for meet- ings if adequate conference /meetings facilities were available. Supporting this optimistic outlook is the high degree of success report- ed by other small communities such as Seaside, Oregon and Yakima follow- ing opening of conference /community centers. The present inventory of hotel /motel rooms in Port Angeles and Clallam County appears to be adequate for most convention groups in the pre ceived target market. Upgrading of some existing properties and the possibility of attracting an additional hotel /motel near the Event Facility Consultants 4 proposed conference center should be considered a high priority should a decision be made to proceed with the project. The size of the convention or meetings in which Port Angeles can hope to achieve the highest capture rate lies in those with attendance rec- ords_ of 300 persons or less. Fortunately, these small meetings repre- sent the largest portion of the market 78.41%. Estimated utilization of the proposed Conference /Cummunity Center by convention and meetings would probably be in the range of 45 to 50 days annually. The bulk of such meetings can be expected to occur in the months of April, May, September and October periods of time when hotel /motel rooms and other visitor oriented facilities in Port Angeles and Clallam County are not otherwise over booked with tourists and summer travelers. In addition, it is estimated that a broad variety of community uses will generate an additional 100 to 1I0 event days. Annual operating costs of the proposed facility,_not including debt service, are estimated at approximately $119,600 with revenues estimated _:at $89,000, resulting in a probable operating shortfall of approximately $30,000= for the first year. Assuming that Port= Angeles could host an estimated 19 conventions, conferences or meetings with average attendance of persons each, direct economic benefits to the Community would total approximately $382,375 in first round spending. Employing a "multiplier" of 3.5, the overall economic impact on Clallam County and the area should be in the vicinity of $1,388,312 annually. Potentials for accomplishing all long -range economic and community objec- tives are not readily apparent in renovation of existing facilities at the present site as in construction of a new center at a more desirable location. The existing Vern Burton Memorial Community Center -can, however, most likely be renovated to provide most of the basic requirements for the conference /meetings market and thus prove a valuable community asset. Event Facility Consultants It appears, therefore, that four primary options, plus some variations, are available for consideration. 1. Construction of a totally new facility on a more desirable site. a. Construct the main space and supporting features as a first phase. b. Construct additional meeting rooms as a second phase. 2. Construction of a totally new facility on city -owned property (the present Community Center site)_ a. Construct the main space and support features as a first phase. b. Construct additional meeting rooms as a second phase. 3. Renovate Vern Burton Memorial Community Center as much as possible to meet program requirements. 4. Do nothing. A- decision to abandon further consideration of the porject does not seem to be in the best interests of the city or county. Economic con- ditions would indicate that efforts should be continued to develop a broader economic base for the area. At the same time construction of the proposed facility would undoubtedly establish Port Angeles as the center of activity on the Olympic Peninsula a- destination point which -could attract additional visitors annually -who -would perhaps otherwise have no reason �r occasion to travel to and through the -area. It can be- assumed that a totally new facility of 35,000 Square Feet or larger will cost in the vicinity of 2.5 million dollars in construction costs alone. Acquisition of a site not presently -owned by the city would, of course, push the total budget even higher. Should it be deemed impossible to develop such funding either now or in the foreseeable future, it would appear that implementation of a renovation program for Vern Burton Memorial Cummunity Center may be the best and perhaps only course of action to be pursued. 5 Event Facility Consultants s. EXECUTIVE SUMMARY A total of 284 survey questionnaires were mailed to a selected list of Washington -based associations and organizatons. From these plus other Northwest groups, an estimated 1,334 conventions, conferences and meetings are generated in Washington annually. Time of Year -Size- of -Meetings Usable replies were received from 63 respondents resulting in a. 22.5% response which is believed to be sufficient to accurately reflect poten- tials 'for and attitudes toward Port Angeles as a conference /meeting site. As in the national market, Washington state and regional groups prefer spring and fall months for meeting dates. May is the most preferred month of the year, September, October and April follow in order. July and December are the least preferred months. The bulk of -the potential state and regional convention /meetings market (78.410) is comprised of those with 300 or less delegates. 59.01% report attendance of less than 200 delegates and 27.87% report 100 attendees or less. Exhibition space requirements are minimal with 55.74% indicating exhibits are not -a part of their meeting program. Of those requireing exhibit space 36% reported their exhibits ranged from 10 to 50 (an estimated maximum of 5,000 gross square feet). 4- 6 Event Facility Consultants Maximum Seating Requirements Reflecting the size of delegate attendance, 57.58% of those responding indicated maximum seating requirements for 200 persons or less. Only 11% indicated a need for seating in excess of 1,000 persons. Food Function Seating Requirements for food functions were slightly higher with 67.27% of those groups which conduct such activities indicating a need for seating from 100 to 250__ persons. Only 19% indicated a need for seating in excess of 500 persons. Number of Meeting Rooms Required The need for separate meeting room space was universally expressed by respondents with 57.63% indicating a requirement far at least 2 to 4 such rooms in the convention center. Size of Meeting Rooms Primary demand ,is for meeting rooms seating 25- to 50 persons. Second heaviest demand is for rooms seating 50 to 100. Hotel Rooms Required More than 88.33% of associations responding to the survey reported hotel /motel requirements for 300 rooms or less. 58.33% of the respon- dents required 150 rooms or less. Previous Meetings In Port Angeles Only 18% of the respondents indicated they had met previously in Port Angeles. 7 Event Facility Consultants Attitude Toward Port Angeles An encouraging 65% of the respondents (41 of 63) stated they would seriously consider Port Angeles as a site of future meetings if adequate conference/ meeting facilities were available. Four primary reasons were cited by the others (35%) who indicated they could probably not consider Port Angeles as a meeting site. included: ;`1 Geographic location in the state. 2 Lack of good air transportation. 3 Lack of local members or a local chapter. 4 A desire to meet in a resort center. Meeting Site Considerations Previous Convention Sites 8 These Of eight- -major factors in determining suitability of a convention site, meeting rooms were cited by 86.b7% as very important. Second highest ranking was given to the availablity of good -restaurants. Reflecting the state and regional nature or the market, the need for assistance from—residents-of-Port-Angeles and vicinity was rated the third greatest consideration. Fourth highest need_was for an adequate convention center (When combined with meeting rooms, the need for a complete center becomes the most crucial factor.) Availability of recreation and entertainment was considered very impor- tant by some 25% of the respondents. Other items, in order, were the attitude of local residents and assistance from the convention bureau. Availability of department stores and shopping was given the lowest priority. A wide range of cities from Anchorage, Alaska to Monterey, California were listed by reporting associations as previous convention sites. The Event Facility Consultants a most popular of the 45 cities for Northwest groups was Spokane with 12.50% of the market. Seattle was close behind with 11.980. Olympia ranked third with 8.85% and Portland was a surprising fourth with 7.81%. Following closely were Yakima (6.77%) and Tri-Cities (5.73%). Future Convention Sites Examination of future convention sites selected to date by reporting groups reveals Seattle and Yakima sharing the lead with 17 meetings each .06.5%). This would appear to confirm the :value of Yakima Center to that community in its quest for a greater share of the state and regional meetings- market. Spokane ranked third (12.6%) in popularity as a future site with Portland (8.74%) fourth and Tri Cities (7.77%) fifth. 9 Event Facility Consultants SECTORS OF THE MEETING MARKET The meeting market can be divided roughly into three sectors cor- porate meetings, association conventions and trade shows. In actual practice the last two categories have become increasingly Tess- distinct with many conventions including large exhibits and a number of trade shows requiring large amounts of meeting space. Corporate Meetings As firms market nationally and establish distant facilities, they need to bring segments of their personnel together for training seminars, sales meetings and board meetings. I n 1979, Meetings and Conventions Magazine estimated there were 614,000 of these meetings involving a total expenditure of $3,963,000,000. These meetings constitute 81 percent of the total meeting market, but because they are generally small, account for only about 34 percent of all meeting expenditures. Corporate meetings have an average attendance of 64 persons and, accordingly, usually choose hotels as the meeting site. The specialized needs of this segment of -the market have spurred the growth of small, generally privately -owned conference centers, and also contributed to the growth of the university owned- conference center. Downtown and resort sites still _host the majority of these meetings. Association Meetings The number of associations in the United States continues to grow on the order of four to five percent per year. to 1979, there were 13,575 national associations in the United States up from 6,403 in 1961, an increase of over 83 percent. There is every indication that the number will continue to increase at a significant rate. (Table B -1 shows the extent of this growth.) 10 Event Facility Consultants Trade and business associations form the largest segment of this mar- ket, accounting for 22 percent of all association. Other significant sectors include cultural (9.5%), medical (9.4%), scientific (6.9%), educa- tional (6.6%), and public affairs (6.7%) associations. Table A -1 NATIONAL ASSOCIATIONS, UNITED STATES SELECTED YEARS, 1961 THROUGH 1979 Trade Shows and Exhibits Number of Year Associations 1961 7,403 1964 8,930 1968 9,623 1971 11,340 1975 12,866 1979 13,575 (Source: U.S. Statistical Abstract) Most associations hold some kind of major convention on an annual basis. The meetings /market analysis of 1979 activity by Meetings and Conventions Magazine estimates that there were, 10,300 major association conventions held in the United States last year. While this constitutes only about one _percent of the total events in the meeting market, it accounts for spending of $3,801,000,000. Although some conventions clearly have as their major purpose bringing people together, more and more major conventions include commercial exhibits as a focus of activity and a source of revenue. At trade shows, as contrasted with conventions, the major activity for the attendees is visiting the booths of the exhibitors and learning about new products. Meetings and social functions constitute a growing part of the activity but usually include only some portion of the attendees. Trade show attendees may stay for a few days of the total show while convention attendees usually stay for the length of the convention. 11 Event Facility Consultants Average Number Total Number of Delegates of Delegates 1976 Successful Meetings' 1978 Annual Directory of Trade and Industrial Shows listed about 5,000 shows scheduled for 1978 in 617 different cities. These listings include both trade shows and convention exhibits. There is also evidence that the trade show market is steadily increasing. Sizes of Meetings Table A -2 illustrates trends on meeting---sizes showing average- atten- dance at corporate meetings and association major conventions to be declining slightly. Table- A -2 AVERAGE SIZES OF MEETINGS UNITED STATES, 1976 AND 1979 Corporate Meetings 77 46,354,000 Association Major Conventions 785 7,504,600 Association Other Meetings 1/ 89 11,214,000 Total 65, 072, 600 1979 Corporate Meetings- 64- 39,296,000 Association Major Conventions 775 7,982,500 Association Other Meetings 1/ 105 13,986,000 Total 61, 264, 500 Percent Change, -1976 -1979 Corporate Meetings Association -Major Conventions Association Other Meetings 1/ Includes regional conventions. (Source: Meetings and Conventions Magazine tri- annual survey of meeting Planners.) 12 -16.90 1.3% 18.0% -15.3% 6.4% 24.7% Event Facility Consultants Table A-3 illustrates the percentage of total conventions and the per- centage of total delegates according to recent International Association of Convention Visitor Bureaus statistics. Table A -3 PATTERNS OF MEETINGS BY SIZE Percent of Total Events Reported National Pct Cumulative Under 500 45.3% 45.3% 500 -999 21.6 66.9 1,000 -2499 19.0 85_9 2500 -4999 7.2 93.1 5000 -7499 3.0 96.1 7500 -9999 0.8 _96.9 10,000 14,999 1.5 98.4 15,000- 19,999 0.7 99.1 20,000+ 0.9 100.0 TOTAL 100.00 Percent of Total Delegates National Pct. Cumulative Under 500- 7.0% 7.0% 500 -99g 8.8 15 8 1000 -2499 17.1 -32.9 2500 -4999 14.3 47.2 5000 -7499- 11.0 58.2 7500 -9999 4.2 62.4 10000 -14999 10.6 73.0 15000 -19999 7.2 80.2 20000+ 19.8 100.0 TOTAL 100.0% Source: International Association of Convention Visitor Bureaus As illustrated in the foregoing table, the jreatest number of meetings are under 500 delegates with 45.3% of all meetings falling into this. category. Only 14.3% of meetings are over 2,500 delegates, but, meetings in this size category account for 67.10 percent of all dele- gates. 13 Event Facility Consultants THE WASHINGTON STATE CONVENTION MARKET Washington cities must recognize two primary problems in their quest for convention business geographical location and population. For national and regional conventions, the location of the state in the outer perimeter of the continental United States presents a requirement for more delegate travel time and expense than would be necessary to reach midwestern or more centrally-located cities. For cost conscious organizations, this is a strong factor in site selection. Secondly, the total number of convention attendees will probably be perhaps somewhat lower at any northwestern site since Washington ranks only 21st in national population totals and Oregon is even lower. Higher" travel costs may, in some respects, someday become a "plus factor" for Washington cities with many industry observers predicting that associations are trending toward more regional meetings in an effort to reduce delegate expenses. There is also evidence the ten dency of certain state groups to -avoid meeting in larger cities with their attendant high hotel and food rates. Both of these conditions, of course, tend to favor a- city—such as Port Angeles in its quest for a share of state and regional business. Finally, it must also be noted that the meetings business is a growth industry. Most surveys indicate that the industry as a whole is grow- ing by an average of 4-5% per year. The present "rule of thumb" is 4.5% per year and is applied across the board. At an annual compound growth rate of 4.5% annually, an individual association can be expected to grow by almost 25% (24.60) in a five year period. Generally, it is believed that while the number of events in the target market may not expand significantly in the 1980s, average attendance and exhibit space requirements will grow four to five-per- cent annually. 14 Event Facility Consultants This, of course, leads to the conclusion that any plans for a facility designed to cater to this market should logically include some possibility of future expansion. 15 Event Facility Consultants POTENTIAL CONVENTION MARKET Highly important to determination of desirable public assembly facilities for Port Angeles was identification and of the potential con- ference /meetings market for the city. In addition to information from recognized industry sources, it was felt necessary to conduct a direct mail survey to a selected list of Washington -based associations and organizations which conduct an estimated 1,334 meetings annually. A total of 63 usable replies was received from the mailing resulting in a response rate of 22.5% which is believed to -be sufficient to accurately reflect 'potentials for and attitudes toward Port Angeles. The response rate was 'similar to that of an earlier survey. Further testing of sur- vey results was conducted by comparisons with similar studies in other Washington cities by this firm and others. "Of particular note to Port Angeles, which has a somewhat limited inven- tory of hotel /motel rooms, was the size of northwest state and regional meetings. As detailed in Table B -1, some 27.87% attract fewer than 100 delegates and 59% under 200 delegates. 'Table :B -1 ESTIMATED NUMBER OF` ATTENDEES /DELEGATES Delegates/ Number of Attendees Meetings Percentage Accumulative Under 100 17 27.87% 27.87% 100 150 9 14.75 42.62 151 200 10 16.38 59.00 201 250 7 11.48 70.48 251 300 3 3.92 75.40 301 400 1 1.64 77.04 401 500 4 6.56 83.60 501 750 3 4.92 88.52 751 1000 2 3.28 91.80 1001 3500 5 8.20 100.00 61 100.00 Source: Event Facility Consultants survey 16 Event Facility Consultants Competition for Northwest state and regional meetings is keen but most groups indicated a propensity for moving about the area geographically. An encouraging 65% indicated they would consider Port Angeles as a future site if adequate meeting facilities were available. As shown in Table B -2, this could result in as many as 19 meetings and conventions annually for Port Angeles. Table B -2 POTENTIAL MARKET CAPTURE FOR PORT ANGELES Estimated state and regional conventions held.- annually in state of Washington Meetings under 200 delegates (590)- Estimated Seattle "share" (58%) Table B -3 EXHIBITION SPACE REQUIRED Booths (10' x 10') Number Percentage 1,442 850 493 Remaining state regional conventions 357 Divided by 12 competing Washington cities 29.75 Port Angeles potential market *65%) 19.5 65% of associations surveyed indicated they would consider Port Angeles if adequate facilities were available.) Source: Event Facility Consultants Spokane and Seattle were the most popular convention sites on the basis of previous selections made by the meeting planners. Table B -3 illus- trates results of that section of the report. Accum. None 34 55.74% 55.74% 10 50 22 36.06 91.80 51 100 3 4.92 96.72 101 150 1 1.64 98.36 151 200 1 1.64 100.00 61 100.00 Source: Event Facility Consultants Survey 17 Event Facility Consultants As future convention sites, Seattle and Spokane continue to hold a favored role with the exception that Yakima is gaining rapidly as a desirable location for meetings seeking an eastern Washington location. (Table B -4). Table B -4 FUTURE SITES SELECTED FOR STATE REGIONAL CONVENTIONS City 18 Number of Meetings: Seattle 17 Yakima 17 Spokane 13 Portland 9 Tri-Cities 8 Wenatche 5 Bellevue 3 Bremerton 3 Olympia 3 Vancouver 3 Anchorage 2 Everett 2 Pullman 2 Alderbrook 1 Bellingham 1 Boise 1 Calgary 1 Edmonton 1 Harrison -Hot Springs 1 Kahneta Hot Springs 1 Lynwood 1 Ocean Shores 1 Orcas- Island 1 Reno 1 Salem 1 Saskatoon 1 Sun River 1 Vancouver, B.C. 1 Wenatche 1 In identifying these factors considered most important in the selection of a convention /conference site, meeting planners rated the availability of adequate meeting rooms in the convention center as the most impor- tant. (Table B -5). Event Facility Consultants Table B -5 Factor Convention /Exhibit Center Adequate Meeting Rooms in Center Very Important 19 -320 52 87% 34 57% Good Restaurants Entertainment/ Recreation 16 25% Department Stores Shop,s 1 2% Convention Bureau Assistance 6 100 Assistance from local members 26 43% Reception from townspeople 9 15% IMPORTANT FACTORS FOR SITE SELECTION (NOTE: Total number of responses vary answer all questions.) Source: Event Facility Consultants. 19 Moderately Important Little Important 16 27 25 400 7 -120 1- 1% f 21 35% 5 8% 26 41% 21 34% 33 54% 27 44% 27 43% 29 47% 18 --300 16 -270 28 47% 23 38% as all respondents did not (The availability of sufficient hotel /motel rooms to house delegates and attendees in the host city was considered to be such a primary and critical criteria that it was not included in the listing of factors for evaluation. If included it would, of course, rank as No. 1 for all groups.) The requirement for good restaurants was rated as the second most important criteria after meeting rooms. Reflecting the fact that the potential market for Port Angeles are those associations with smaller delegate counts, it was interesting to note that meeting planners require help from their local membership more than from a Convention Bureau or possibly the Chamber of Commerce. Event Facility Consultants 1 Additional Utilization In addition to the conference and convention use discussed in this report, a substantial demand for the faclities can be expected to be local in nature. This assumption is supported not only by examination of activity schedules from buildings located throughout the United States and Canada, but also by interviews with Port Angeles residents. Local demand, in some cities, accounts for more than 75 percent of the utilization. Wedding receptions, banquets, dances school events -and social activities of every type can be accommodated and served in the proposed struc- ture. It should easily become one of the most desirable gathering places in the area if proper support features, services, equipment and administration are provided. Development of -certain repetitive or ongoing activities such as flea markets, square dances, youth activities, religious gathering, and similar events can be expected. It can also be anticipated that some level of facility usage will develop from senior citizen groups. o Conventions o Convention Exhibits o Food Functions o Public Hearings It must be recognized, however, that much of this utilization will de- pend upon rental -rates, services to be provided as well as overall administrative attitudes and policies. Almost without exception, introduction of such a facility as is proposed has resulted in a schedule of 100 to 150 activity days or more annually. A partial listing of potential activities which could be presented in the 3 hall as suggested includes: 20 Event Facility Consultants o Senior Citizen Activities o Retirement Parties o Product Introductions o Sales Meetings o Examinations o Holiday Parties o Ethnic Functions o Religious Services Meetings o Travel lectures o Contract Bridge Groups o Arts /Crafts Shows o Antique Shows o Auctions o Antique Car Shows o Union Meetings o Motorcycle Shows o Dog Shows o Cat Shows o Flea Markets o Rummage Sales o Gem Shows o Stamp Shows o Bottle Shows o Wedding Receptions o Closed Circuit Television o Boxing o Wrestling o Musical Concerts o Square Dances o Rock Concerts o Ballroom Dances In many communities -a Center has provided not only the needed phys- ical facilities but also the incentive for creation of new local events designed not only to utilize the facility but also to attract visitors to the area. 21 Event Facility Consultants FACILITY PROGRAM To serve the perceived market for a public assembly facility in Port Angeles it is recommended that the architectural program include a main hall or pavilion plus meeting rooms and appropriate support areas. Overall site planning for the proposed convention structure should provide adequate land for possible future expansion of exposition space wherl needed. Although difficult to accurately estimate without benefit of definitive programrn'ing," it can be presumed at this time that the spaces herein described would total approximately 40,000 square feet, dependent upon =a wide range of decisions and design factors. Flexibility and close attention to function must be key characteristics in the schematic"- -design and the facility if it is to successfully serve the meetings market. At the same _time, it is imperative that the overall design be such as to present a highly desirable image to prospective users. The finish, -.furnishings and- equipment of the facility particularly the meeting rooms should be of first grade quality and present above- average accommodations for the conduct of meetings, conferences and social events. The design and capabilities of the Port Angeles Center should be of such a nature to engender in lessees a desire to reschedule at an early date. The Main Hall The major space or hall of the proposed facility should provide approx- imately 10,000 to 12,000 net square feet of column -free space with a ceiling height of 20 to 25 feet, a concrete floor offering heavy load capabilities and a stage platform at one end. 22 Event Facility Consultants 3 The hall will serve a wide variety of activities including exhibitions, meetings, social functions and certain types of concerts whose acoustical requirements are not exceptionally critical. Even so, the acoustical properties of the room and its sound reinforcement equipment will still be of great importance if it is to properly serve its multi -use functions. Utilization of the hall can be increased substantially by incorporation of a panel wall to permit division of the major space in at least one loca- tion. Use of the facility for exhibition purposes will require a reasonably sophisticated utilities system wherein electrical power, telephone ser- vice, water, floor drains and some exhaust capability can be offered to exhibitors. Wall surfaces should be of durable material since they are subjected to frequently scratching and scraping by vehicles as well as packing crates. Lighting Due to the wide .variety of uses envisioned for the hall, special atten- tion to providing the proper type of lighting is of extreme importance. _Many halls are illuminated with fluroescent, metal halide or similar lights. Such lighting, however, is not desirable for food functions nor does- it normally serve as proper "house lighting" for stage presenta- tions. Consequently, -there is the need for a dual or secondary system of incandescent lighting with dimmers and black -out switches for meet- ings, banquets, social functions and similar activities. 23 Event Facility Consultants Shape Halls of rectangular shape are favored not only for maximum develop- ment of booth layouts but also for the most desirable banquet, social function and stage presentation arrangements. The average exhibit -type show will .offer booth space 10 feet wide with depths of either 8 or 10 feet. Aisles are normally 10 to 12 feet in width. Booths provided exhibitors are customarily of pipe and drape construction, 8 feet. in height at the rear with 4 -foot railings along each side. Drape equipment is customarily provided by a professional show deco- rator under a rental or lease agreement with the sponsoring organ- ization. Such rental equipment is available in Seattle, but an adequate supply of booth equipment should be included as a portion of the facil- ity!s inventory in Port Angeles. Exhibit hall floors are subjected to extremely heavy usage. Conse- quently, concrete is recommended as the most economical and durable floor material. 24 A ceiling height of 25 feet or more will permit easy access of any size of over- the -road trucks, most heavy commercial or construction equip- ment, as well as consumer-show displays. Windows are not desirable. Sunlight through windows fades exhibit booth draping, washes out the color and lighting of many exhibits, can prove distracting to exhibit viewers and may also serve as a conveyor of undersirable heat loads. Since the hall will also be used for stage presentations as well as film shows and possibly closed- circuit television, the capability to darken the space will be needed. Event Facility Consultants Loading Facilities Demands and desirability of loading and unloading directly on the exhibit hall floor will vary depending upon the size and nature of the exhibit. Regional and state events such as will comprise the bulk of the schedule in Port Angeles customarily result in many small trucks from exhibiting companies and individuals. Ideally, the Port Angeles facility should offer at least two large doors providing easy _access to the exhibit hall floor: A loading dock is recommended. Storage Storage space will be required for equipment such as tables, chairs, risers, cleaning equipment and other items. On the basis of 'what can be considered -:_a reasonably normal inventory for a facility of this nature, a storage area of approximately 3,000 square feet would appear adequate. E Capabilities Inasmuch as the square footage recommended for the exhibition hall must be considered minimal for a facility of this nature, some provision should be made in its design for possible future expansion. It is suggested that schematic design provide for one wall which could be removed under -a relatively economical plan to permit enlargement.of the exhibition space. Office Spaces The size and quantity of administrative offices will depend greatly upon operational policies to be determined. 25 Event Facility Consultants An important support feature of the Port Angeles _Center should be a kitchen of adequate size to serve banquets, luncheons and dinners in either "the- meeting rooms or the main hall. It is assumed the main hall will, accommodate from 1,000 to 1,200 persons at food functions. An Minimally, the space should include a reception area, general office area, a storage and work room and a private office for the facility manager. It may also prove desirable for the office to serve as an operational base for the hall, housing lighting and temperature controls, sound controls, public address and paging equipment, etc. A small office, or at the very least some secure space, should also be provided for the Building Superintendent, Head Custodian or similar person. Maintenance and engineering documents, toots and other equip- ment= are normally. the responsibility of such an individual. and pro- visions must be made for their safe keeping. Kitchen additional requirement will be the providing of coffee service for meet- ing rooms throughout the day. A portion of the kitchen will also be concerned with the providing of supplies and some support to the concessions stand or stands. Normally,, the programming of a full food production kitchen for a fa- cility of this size and located in a city- the size of Port Angeles would not be recommended as a part of the initial development. Rather, it often proves more feasible to suggest a- catering kitchen with minimal equipment which can later be expanded to production capabilities when the demand develops. The current situation in Port Angeles, however, indicates the probable necessity that a production kitchen of a size to serve 500 to 1,000 .persons be included in the initial program. Existing kitchen facilities in Port Angeles are reportedly adequate only for the needs of their 26 Event Facility Consultants individual properties and the availability of adequate food production equipment for the catering of banquets elsewhere is evidently not cur- rently available in the city. Barring some change in the catering outlook, therefore, the complete kitchen should be considered as a requirement. The kitchen layout and equipment decisions should be reviewed care- fully with consultants specializing in the food and beverage business. Concessions Stands_ For -consumer shows, _entertainment events and may other activities, provisions should be made for a permanently located concessions stand or snack bar. The concession stand will probably require counter space of 25 to 30 linear feet and total dedicated space of 500 to 600 square feet. Adequate equipment for the production and dispensing of normal con- cession items such as popcorn, hot dogs, soft drinks, coffee and ice cream=will be required._ To adequately serve the public at such times as the concessions or catering services -are not in operation, -a space for vending machines should be provided.- Normally, such equipment includes those for the vending of hot drinks, cold drinks, candy and cigarettes. Recesses for their equipment should be provided. Beverage Service The nature of activities which will probably transpire in the Port Angeles Center would not indicate the need or desirability of a bever- age bar. Rather, the use of portable bar for social hours prior to food functions or for possibly dispensing of drinks during a dance -would provide both the flexibility and mobility to meet the specific needs of the function at hand. 27 Event Facility Consultants A public assembly facility of this nature will require development of an 1 Support Facilities adequate lobby of 1,500 to 2,000 square feet designed to serve as a holding area for persons awaiting entrance into the main hall and /or meeting rooms. The lobby should provide at least two ticket windows for the sale of tickets. In addition, an area will be needed for the checking and handling of coats, -hats and other outdoor clothing. Equipment Meeting Rooms 28 Public telephones _will_ also be required in the outer lobby and pro- visions for recessing this equipment in the walls is recommended. A substantial inventory of specialized equipment will be required for proper operation of the facility. Adequate budget for such items should be included in any capital financing program. included_ _would be such items as portable tables and chairs, elevated platforms, lecterns, audio visual items, material- handling equipment, maintenance equipment, spotlights, special electrical harness, office equipment and furniture, trash disposal equipment, kitchen and con- cessions equipment, etc. For both convention as well as local needs, it is recommended that meeting room space of 4,000 to 5,000 square feet be provided. Further, these spaces should be as flexible as possible, providing from four to six individual rooms by the use of movable panel walls. It may well be that closer examination of construction costs and the expense of room dividers will dictate the necessity of reducing the Event Facility Consultants number of rooms to some degree. Some reduction can, of course, be made without affecting the overall marketability and function of the facility. The degree of such a cut must be carefully examined. Ceiling heights of 12 to 15 feet will be required for the proper use of these-rooms for film slide projections, etc. Specific attention must be paid to the design of the adjustable meeting spaces to ensure the acoustical integrity of each. Generally speaking,- the meeting rooms should be of a high quality similar to those currently found in hotels. This would indicate the requirement for carpeted' flooring, comfortable chairs and durable, but attractive, wall finishes. The meeting rooms will also require appropriate equipment such as acti- vity tables for classroom -style setups, chairs, easels, blackboards, lecterns, sound reinforcement systems, motion picture screens, etc. Storage facilities for equipment to be used primarily in the meeting rooms should be designed as adjacent as possible. The location of the meeting rooms as they relate to the exhibition hall, kitchen, entrances and exists is of great_ importance to experienced meeting planners. A thorough discussion of the matter is strongly recommended when development of schematic plans is undertaken. 29 Event Facility Consultants OBJECTIVE: To provide adequate group facilities for public assembly and to stim- ulate additional convention and conference utilization of Port Angeles by outside groups. GENERAL: Moderately _large flexible facility for conferences and banquets capable of feeding 1,000 people simultaneously. Room_ Function: 1'. Conferences 2. Conventions 3. Banquets (maximum 1,000 seating) 4. Exhibits and trade shows 5. Concert capabilities 1,500 for stage presentation FACILITIES SPACE REQUIREMENTS CONVENTION /COMMUNITY CENTER 1. Main Room a. Room divides into two rooms with operable walls. Access is needed to each room from building and also food service. b. Ceiling 25' high. c. Access s -doors from outside approximately 15' high x 18' wide. TOTAL 12,000 s.f. 2. Storage space for equipment used in main r_ o_ om. a. Portable- chairs. 800 s.f. b. 125 tables 60" round 375 s.f. c. Platform for head tables, chalkboards, etc. 1,875 s.f. TOTAL 3,000 s.f. 3. Meeting Rooms a. To be divided with operable wall partitions. 4. Concessions located in lobby a. This space would suffice for all equipment and storage. 5. Kitchen a. Food preparation and cooking equipment, storage and receiving. TOTAL 6. Lobby a. Provide circulation between entrance, banquet areas and meeting rooms. Space to be serviceable, but with a degree of elegance. Alcove for vending machines, and public telephones. TOTAL 30 5,000 s.f. 600 s.f. 3,500 s.f. 2,000 s.f. Event Facility Consultants 1 14 7. Administrative offices a. Manager 150 sq. ft., bookkeeper /sec /receptionist 100 sq. ft. workroom /storage 100 sq. ft. reception area 150 sq. ft. TOTAL b. Located outside of ticketing area, accessible to public. 8. Ticketing a. Two ticket windows, with office /back up total area 150 sq. ft. Locate off lobby, outside of adminis- tration control, allow space for ticket buyers to wait in line. b. Ticketing office and administration office relate closely. TOTAL 9. Toilet Rooms a.' Uniform plumbing code. Toilet rooms to have facilities for the handicapped. TOTAL 11. Maintenance Office for Building Superintendent 80 sq. ft. Shop space for small carpentry projects, maintenance and repair of equipment, storage of bulk supplies. TOTAL 12. Dressing Rooms a. Two rooms for individuals with water closet and lavatory. b. Dressing tables, mirrors, hanging space for costumes= and street clothes. TOTAL 13. Organization Storage -Storage compartments where -club files and small items can be stored between meetings. TOTAL 31 500 s.f. 150 s.f. 1,000 s.f. 1,000 s.f. 200 s.f. 240 s.f. Event Facility Consultants 1. Main Room 2. Storage 3. Meeting Rooms 4. Concessions 5. Kitchen 6.- -Lobby 7. Administration Offices 8. Ticketing 9. Toilet Rooms 10. Maintenanace 11. Dressing Room 12. Organization Storage SUMMARY 32 '12,000 s.f. 3,000 s.f. 5,000 s.f_. 600 s.f. 3,500 -s.f. 2,000 s.f. 500 s.f. 150 s.f. 1,000 s.f. 1,000 s.f. 200 s.f. 240 s.f. 29,190 s.f. 13. Non assignable circulation, mechanical equipment, walls, receiving area 7,297 s.f. TOTAL 36,487 s.f. Event Facility Consultants ALTERNATIVE PROGRAM Should it prove impossible to fund the recommended new facility now or in the foreseeable future renovation and expansion of Vern Burton Memorial Cummunity Center may prove an acceptable alternative. The location of the building in relation to existing hotel /motel rooms can be expected to reduce the number of potential meetings that can be attracted to Port Angeles. It is impossible to predict the exact degree of impact the site will make, but certain inducements such as free shuttle bus service could certainly lessen negative concerns in this respect. 32A Hopefully, city -owned land in the area could one day be offered under special conditions to private developers as a potential hotel /motel site. Nevertheless, development of even a modest conference center will qualify the city for a substantial share of the state and regional market and, at the same time,Adentify Port Angeles as a potential site for a variety of other types of events. Most the features--considered, necessary for Port Angeles to seek some 50 to 60% of state and regional- meetings should be attainable through renovation of Burton Center. Any plan adopted must provide for future expansion, particularly in the number of meeting rooms. Addition of two or more during renova- tion is highly recommended. In addition, special attention must be paid to achieving a high_quality appearance not only in finishes but in equip- ment and furnishings as well. Event Facility Consultants Included in a renovation program should be the following: Lobby and /or pre function space Lowered gynmasium ceiling Operable wall to divide main space Renovation of "weight room" to meeting room Renovation of east dressing room to kitchen space Renovation of west dressing room to administrative_space Addition of two or more meeting rooms with divider or operable walls F New rest rooms Passenger drop -off zones Additional parking spaces t Truck access doors /loading dock Storage -and maintenance space Proper -life- safety accommodations, exits, etc. Adequate circulation and service corridors Implementation To implement this alternative program, the following actions appear necessary: 1. Identify maximum funding available 2. Develop budgets identifying construction, movable equipment and star -t -up costs 3. Select and engage an architectural firm with particular expertise in interior space design to undertake identification of program items that can be achieved with available construction dollars. 4. If preliminary schematics and construction estimates prove' acceptable, the same architectural firm should be authorized to proceed with design development. 32B Event Facility Consultants REVENUES AND EXPENSES Development of estimated revenues and probable operating costs for the proposed Center first presents the need for some projections of antici- pated utilization. On the basis of information gathered both in this study and those which have preceded, there would appear to be little doubt that an acceptable level of usage can be developed. Indeed, satisfactory utilization of an audience support facility in itself constitutes "feasibility" -in keeping with the public assembly concept. In other words, since it can be demonstrated that a structure will be actively used, then- it can be deemed feasible for the public to make the investment. However, in a strict financial sense, there is little likeli- hood that the facitty's annual income will match annual expenses and even less possibility that such revenues could make any contribution toward capital debt amortization. Consequently, it is intended in this section of the report to present some of the operational economics of the facility. Rental Rates Under ideal circumstances, a public assembly facility would serve all community needs, yield sufficient revenues to meet fixed costs such as debt amortization and interest, pay operating -costs and perhaps even provide a surplus for future maintenance. Few, if any, projects- have experienced such happy circumstances, thus forcing their governmental owners or administrative bodies to determine what the financial policies should be. As a result, rental fees then become more a matter of identifying purposes and objectives rather than economics. Obviously, if the rent of a facility is so high that pros- pective tenants are unable to use the facility, the entire purpose of the project may be lost. 33 Event Facility Consultants 34 At the same time, experience has shown that a community quickly adjusts to the necessary higher rent schedule of a new facility and endorses it in exchange for having an adequate, first -class center available. Rental rates must also be relatively in accord with those of other facil- ities or similar size and quality if the desired activities and events are to be attracted. Generally speaking a rental fee structure providing for two basic categories-- commercial and noncommercial -is recommended. Further, a provision calling for the option of a basic fee or 10 percent of gross receipts, whichever is the greater, is suggested for all admission -type activities. Revenue projections have been developed on the assumption that all users of the Port- Angeles facility will be required to pay established rental fees. This concept, it is believed, should be considered vital to proper administration of the property. It is needed also for the eval- _-uation of management and for adequate community assessment of the overall operation. (While operational policies are not specifically under discussion at this point, the concept of a firm rental rate schedule must be considered at an early date if operational proformas are to retain any degree of credibility.) Rental rates employed in development of anticipated revenues for this report are based on figures currently charged for facilities of similar size. Rental revenues have been estimated on the basis of anticipated util- ization derived from interviews with prospective users and from a review of the operational patterns of similar facilities. While the open- ing year's schedule can be expected to contain many first -time, and Event Facility Consultants perhaps one -time, lessees, it is anticipated that the calendar will build each year as additional conventions are attracted and community events are developed. Operating Expenses Determinaton of specific operational costs prior to the availablity of schematic plans for the center is a virtual impossibility. Rather, it is hoped that this report can present the range and type of probable expenses which may be encountered and at the same time suggest an estimate of potential income. be forthcoming from other sources. 35 -While certain architectural designs and aesthetic considerations could develop increased operational costs, it has been assumed that the pro- posed =-facility will __be of reasonably conventional design and =of high quality. Operational costs have been projected on the basis of certain known factors within the_area and also following a study of financial statements and operating budgets from what are assumed be similar facilities throughout the United States and Canada. All figures are presented in 1981 dollars and no percentages added for inflationary or other increases between now and opening date. Since most public assembly facilities _are strongly service oriented, a substantial percentage (usually in excess of 50 percent) of operating expense is found in salaries and benefits. Even so, it should be point- ed out that the data presented herein has been developed on the assump- tion that center administration will not be primarily reponsible for either event promotion nor convention sales. Funds for these activities must For purposes of this study, it has been assumed that the facility will be operated by a working manager assisted by a secretary bookkeeper plus one full -time operation and maintenance person. Event Facility conservative. J Administrative expenses for the proposed facilities embrace those items which would normally be found in most business operations. Some downward adjustment in advertising and printing can be anticipated after the first few years of operation. Operation- and maintenance cost estimates are the most difficult to pro- ject at this point in time. The task is made even more difficult in view of rapidly escalating utility costs which have upset budget projects of facilities throughout the United States during the past few years. However, on the basis of the current experiences of similar facilities, it is_be[ieved that the overall total expense may apporximate that which can reasonably be expected. While not shown in the pro formas for the first years of operation, any future budgets should reflect provisions for an aggressive maintenance program to keep the building in first -class condition. Concessions, Parking and Other Income Proper assessment of revenues for a public assembly facility cannot be made without consideration __of the income from concessions, catering equipment rental, possibly parking and other sources Concessions activity during shows, exhibitions or events in the hall, should be reasonably- strong with per capita spending varying with the event, time of day and other factors. For purposes_ of this _report, a per capital income of 50 cents has been assumed. Steadily rising prices in the industry could well double these fingures within -a very short time. They are, therefore, considered Should the operating authority of the center elect to undertake self operation of the concessions, net receipts from such acivity would probably be in the range of 30 to 35 percent. If leased, the facility 36 Event Facility Consultants could expect to receive between 20 and 25 percent of gross receipts, depending upon terms of the contract and items to be sold. For purposes of this report, we have used 25 percent of projected gross sales as representative of the potential available to the center. Although difficult to forecase, some income from food and beverage service has been included in this report. The type of kitchen and administrative- policies still to be determined regarding food service will strongly affect the- performance of this department. Also of :concern will be policies regarding hard -liquor, wine and beer and response to the licensing for same. Regardless of what administrative and operational policies are adopted, it is recommended that management give serious consideration to estab- lishment of a catering fee. This should range from 12 percent to 15 percent of gross receipts or higher, depending upon the services rendered by the building to the caterer or caterers. The fee may be even greater if liquor is served. For purposes of __this report, a fee of 15 percent has been used to illustrate potential facility income. No estimates have been included for coffee service to meetings or automatic vending. Estimates for possible parking income have been included but it must be pointed out that these figures could be the most speculative of all revenues. Determination of site size as well as availability of uncon- trolled or on- street parking during events would also have strong impact on the income which could be expected. Adequate parking, however, should be available immediately contiguous to the center to serve the needs of its patrons. Depending upon a wide range of factors, a net revenue of 60 percent to 80 percent can be expected from gross parking receipts. 37 Event Facility Consultants Facility revenues will also include miscellaneous income from the rental of equipment, provision of labor beyond that specified in contract terms, special services and public telephones. 38 Event Facility Consultants Personal Services General Manager 20,000 Secretary /Bookkeeper 10,000 Building Superintendent 15,000 Part -Time Employees 10,000 Benefits (22%) 12,100 Total 67,100 Admini Expense Office Supplies Communications .Subscriptions Travel Advertising. and Printing Insurance Professional Services Vehicle Expense Operation Maintenance Expense Utilities 20,000 Repairs Maintenance 3,600 Maintenance Supplies 5,000 Contract Services 3,600 Total 32,200 (See Notes Page 40) ESTIMATED OPERATING EXPENSES PORT ANGELES CENTENNIAL /CONVENTION CENTER 39 600 1,800 -600 600 2,500 10,000 3,600 600 Total 20,300 Grand Total 119,600 EYent Facility Consultants a A Notes and Caveats: Estimates are submitted in 1981 dollars. 2) No expense items _have been indicated for landscape care or snow removal. 3) No contingency items is shown in this budget, although some reasonable figure will be required. No Aine items _are shown for usual first-year or start -up expenses -as this may be- included in capital expense estimates. No advertising, promotional or marketing costs for convention solicitation have been included in this budget as it is assumed this =will be funded from other sources. Estimates are for information and guidance only and to provide data which may form a -basis for rational decisions relative to the possible fiscal performance of the facility. They are not intended for use in any prospectus for the sale or exchange of securities. No liability is assumed for errors or omissions. 40 Event Facility Consultants Notes: 1) Assumes $350/10% rental fee; 100 uses. ESTIMATED OPERATING REVENUE PORT ANGELES CENTENNIAL CONVENTION CENTER Rental Revenues Main Hall (1) 35,000 Meeting Rooms (2) 4,000 Concessions (3) 12,500 Catering /Coffee Service (4) 22,500 Equipment Rental /Service Charges 5,000 Parking Revenues (5) 10,000 2) Assumes $40 average rental fee; 100 uses. No charge to conventions using main hall. Assumes_ 25% of $50,000 gross receipts. Assumes 15% of $150,000 gross receipts. 5) Assumes 80% of $25,000 gross receipts. 41 Total 89,000 Event Facility Consultants Direct and Indirect Economic Benefits Determination of direct and indirect economic benefits to be gained by development of a convention /community facility -such as proposed for Port Angeles must depend upon estimates of potential market share capture. As indicated elsewhere in this report, (Table B -2) it appears reasonable to assume that with adequate facilities, Port Angeles could host an estimated 19 conferences, conventions or meetings of various sizes annually. On the basis of each confab attracting an average of 115 attendees and each delegate staying 2.5 days in the host city, this translates to 5,462 delegate days with each delegate spending an aver- age of $70 per day or an overall expenditure of $382,375 for housing, food- and services. Source: Event Facility Consultants. 42 Table C -1 DIRECT ECONOMIC BENEFITS TO PORT ANGELES AND CLALLAM COUNTY Estimated average delegate -attendance -(see_ note) 115 Estimated meetings annually 19 Average delegate stay 2.5 days Total "delegate days" 5,462 Estimated daily delegate expenditure $70 Total "first round" spending $382,375 NOTE: Attendance averages based on estimated delegate counts divided by number of potential conventions under 200 delegates. Delegate spending patterns have been carefully documented over the years by through surveys conducted by the International Association of Convention Visitor Bureau. As shown in Table C -6, these "first round" expenditures are widely spread throughout a community. Event Facility Consultants Table C -6 DELEGATE DOLLAR DISTRIBUTION Hotels 37.2% Hotel Restaurants 12.6 Other Restaurants 13.5 Hospitality Suites 2.6 Retail Stores 16.8 Admission Fees 1.2 Theaters, Symphonies, Movies 1.4 Recreational Activities 0.5 Local Transportation 3.2 Sports Events 0.2 Night Clubs 3.6 Sightseeing 0.6 Car, Oil-, Gas, Service 1.8 Other Items 4.9 100.0 (Source: International Association of Convention and Visitor Bureaus 1978 -79 Convention Income The Multiplier Effect Dr. Maynard Keynes, an English economist, was the first to expound on the "multiplier effect" of additional inputs of money into a community. The economic base of a community usually depends on agriculture, food processing, manufacturing, mining, fishing or other activities which create a product to be sold. Businesses which cater to travelers, conventions and business meetings attract additional income for the local economy, money which would not have otherwise entered the economic stream of the community. This additional income produces a greater effect than first -time spending alone. 43 Event Facility Consultants The expanded impact occurs because the money is spent again, one or more times, during the course of a year. The number of times it is spent depends upon the extent to which the area economy is diversi- fied. If a tourist or convention delegate can be persuaded to stay longer or to spend more money, this has a greater impact on -the local economy. There are numerous counterforces, of course, which take money out of circulation within the community. Examples are money saved, money paid=to- the federal: government as taxes, money spent outside the state to bring in food or merchandise to replace that which was sold. The usual range is a multiplier of from 3 to 7, and some go higher than that. In this report, for the purpose of determining the economic impact of convention and meetings on Port Angeles and Clallam County, a multiplier of 3.5 has been used. Thus, $382,375 in first round A spending is estimated to have an economic impact of approximately $1,338,000 on the economy of the area. As can be noted in the IACVE survey on delegate__spending patterns, the primary initial economic impact of a _meeting- or convention on a community is felt by those in the hospitality industry. This is, of course, reflected in jobs and wages for an increased number of hotel/ motel employees, restaurant personnel and others in related service industries. Since a high percentage of delegates coming to meetings in Port Angeles can be expected to drive personal cars, additional business for service stations, automotive supply and repair shops can be expected. Many of the associations indicated a requirement of their group was the availability of nearby gold courses, tennis, fishing and other outdoor activities. Some 25% of the respondents listed the availability of recrea- tion as very important to their site selection criteria. Ranking recrea- tion as moderately important were 42% of those surveyed. 44 Event Facility Consultants In view of this response, there- can be no question that resort opera- tors, boat charter companies and others offering post convention oppor- tunities and services to convention delegates can anticipate economic benefits should the Port Angeles Center become a reality. W94 /C 45 Event Facility Consultants 4205 SW DOWNSVIEW cc rr P(20TL AND, OREGON 97221 12 89'0 25 August 1981 Mr0 Ttl e ilodstram City Manager City of Port Angeles 140 West Front Street Port Angeles, WA 98362 Dear Dave: DJ/ew 47/.23- 1UCp S TEN Thank you for your letter of 21 August 1981. Your comments regardin the presentation are most appreciated. c Work n as r, .t_Cae Scope of .,'dZ'n. outlined Phase III seems to cover most a of the items we discussed and is agreeable to u_s. Since it is difficult at this point to forecast exactly the amount of travel that will be reou ir ='d s I think the not-to-exceed T 6r.- should b x i approximately j $5 0 in order figure �J. aap��•d r :,�,,O:�,O in G._i'ie� tha`t we will b a sufficient t IL �ifi 1, to .L7..i_ >>',A budgeted, If agreeable 4o I can he:_k t several firms regarding reg c= lrz Feral their interest and Perhaps solicit a somewhat general proposal from each On the basis of s i fications you and I Could then reduce the nui:bei to a 3hort list of three, We could then schedule a r .ee'ting in .Pert Angeles for interviews. r�.._� e.._t,' d_ .a wish there was some way we could ma3ce a decision and then do some basic work at the site with the chosen architect w i 1 e we are all in ?art An ele but that may be wishful thinking. It would, hove 4 er, hasten the work and at the same time none all n �c..IIl I:Ie .SaVC, _,.,y o:�' a cd'1Ce:>_:led a Meanwhile, you may want to write to the three firms who made proposals advising them that they will be under consideration. As suggested, I will proceed to make necessary corrections and have the report typed in final forge, Usually we provide three copies but let me know if you need more. it will prob- ably be as cheap for us to do the printing and binding as you. I will be very happy to talk to the Port Angeles Chamber of Commerce regarding the project and our survey. As soon as we see when the proposals will be coming and when we can schedule interviews --r we can see if this fits with the Chamber's schedule. Regards, EV,; NT FACILITY CONSULTANTS Don Jewell, CIF President ■1 1 4 Pk I .1 CI 3 Clallam County Commissioners County Courthouse 223 East 4th Street Port Angeles, Washington 93362 140 WEST FRONT STREET 1 fr 1. 14 q 7'1 1 Z L L JL L 7 OURIS7 CC A 0 I 7 NORT V, EST August 21, 1981 Dear Coiissioners Feeley, Lydiard and Lotzgesell: rr j 1 Tfl L J J PORT ANGELES, WASHINGTON 98352 On August 16, 1981, Nr. Don Jewell, the City/County Convention Center consultant, delivered a suarized presentation of the attached draft report to the Port Ange City C.:unci1 Ibe prsentation whirs" ■;:r. Jewell made yas inforinative. enlighting and very encouraging. I ilve attached a copy of the ow,plete draft report for your review and wuld ast i*at you pay part 1; attention to the sult7ary .and firldingS o pages 3 5 and the E;:e-.JJ Summary eginning on page 6. As can be seen in the report, it was r.r. .2e,:el1 's findings and his recd m-endaLion the; Port is\ngel:,s sould procced with the cc7,- struction of a conventicr. in the 'icrt }Thgeles area. It was also Nr. Jewell's 1 of Ihe iiLaH funding e. ileble to the CAty and the Cou an 1 or the av;Jiiiity of tie Vern Burton re,mrial site and su City propert that Port An and Clallam County could effectively en'er the c industry by renovating the Vern Burton Cycinasiu:1 into an a:equate and accepable convention/com,liunity center. To this end, Mr. JeW21 yemuannd.:::d and the City Council agreed, that the ne:Kt step in the process sh be the selection of an interior design consult- ant for the purpose of developing scheIatic drawings of a convention facility on the Vern Burton Gymnasium site. ThescheaLic drawings will be produced not only on the basis of renovation of the existing building but also based upon the construction of a new facility at the site. It is the hope of the City Council that the Clallam County Commissioners will agree to continue to participate with the City in funding (on a 50/50 basis)the preliminary planning process for this facility. Mr. Jewell has been contacted about assisting with the selection of an interior design consul tan t. Once the cost associated with the schematic design phase are known, they will be provided to the Commissioners for your consideration. 4—, Ili: ;n Ccniss:o(ircs 21, 1931 tr ij1Q County CoH,nissioners would like additional information regarding this proposal or Nc. preseoLation or August lath, I would be more than Wpy to ec ith the Corisioners and provide that information. DIF/jg cc: City CoupH1 meAers Don Friza Dir. of Parks Rec. Rob Orton, Dir. of Admin. Services Sincerely, ---1) David T. Flodstrom, P.E. City Manager AGREEMENT This Agreement is made the %"7 day of 1981 by and between the CITY OF PORT ANGELES, a municipal corporation of the state of Washington (hereafter "City and CLALLAM COUNTY, a political subdivision of the state of Washington (hereafter "County REPRESENTATIONS: 1. This Agreement is made pursuant to the authority of Chapter 39.34, RCW, the Interlocal Cooperation Act. 2. County and City are each holding funds gathered under the provisions of RCW 67.28.180 through .210, commonly known as the "hotel -motel tax." 3. Pursuant to RCW 67.28.210, these funds are limited in their use to the acquisition, construction, or operation of stadiums, convention centers, and performing art centers. 4. The City has entered into an agreement with a consultant, Event and Facility Consultants, Inc., for a determination of need and potential utilitzation of a conference or convention center in Port Angeles. 5. Such study will be of benefit to the County in determining the appropriate use of the funds which it holds, as the scope of work of the consultant's contract extends to all of Clallam County. 6. City complied with all necessary legal procedures in the selection of Event and Facility Consultants, Inc., for performance of this agreement. AGREEMENTS: Now, therefore, in consideration of the above representations, and of the mutual covenants and promises contained herein, IT IS AGREED as follows: 1. Provided that the scope of work of the consultant is as stated in Section 1 of an Agreement dated June 4, 1981, between the City of Port Angeles and Event and Facility Consultants, Inc., a copy of which is attached hereto as Exhibit "A" and incorporated by this reference, County agrees to reimburse the City fifty (50 percent, up to Two Thousand Five Hundred ($2,500.00) Dollars of the amounts paid by the City to Event and Facility Consultants, Inc., pursuant to Section 2 of that Agreement. 2. City will provide an invoice to County at the time that City makes payment to Consultants, and County shall reimburse City based on the invoice paid by City. CITY OF PORT ANGELES _Iayor Clerk z i A1 C 7 BOARD OF LLAM UNTY COMPIIS� Comtissionef/ ommi t9on'e f` AGREEMENT FOR CONSULTING SERVICES BE IT KNOWN, that effective on the 4- day of 1961, the City of Port Angeles, whose address is 140 West Front Street, Port Angeles, Washington, 98362 (herein sometimes referred to as "City and Event Facility Consultants, whose address is 4205 SW Downsview Court, Portland, Oregon, 97221 (hereinafter sometimes referred to as "Consultant do hereby enter into a professional services contract under the following terms and conditions: WITNESSETH: WHEREAS, the City requires the services of Consultant with respect to the determination of needs and potential utilization of a conference/ community center in Port Angeles; and WHEREAS, Consultant by reason of his experience and expertise is capable of rendering such consulting services; and WHEREAS, such services are professional and non competitive in nature. NOW, THEREFORE, the City and the Consultant for and in considera- tion of the covenants and agreements hereinafter set forth, mutually agree as follows: Section 1 Consultant hereby agrees to perform the following Scope of Work: Advise in the final refinement of the overall project objec- tive. Verify assumptions regarding the convention market in the State of Washington; identify potential competition; undertake sufficient market surveys to confirm attitudes and probable use by state associations of the Port Angeles or Clallam County area as a convention site. Draft the most appropriate program of proposed spaces to accomplish desired goals. Estimate probable operational costs and revenues. Recommend alternatives such as project phasing, development of a totally new center, or abandonment of the entire concept. Recommend a planned phasing process permitting City /County officials an opportunity to make go or no -go decisions at appropriate junctures. Identify benefits to the unincorporated areas of Clallam County should a convention /community facility be constructed and operated in the Port Angeles area. -1- AGREEMENT FOR CONSULTING SERVICES Section 2 In consideration of the services described above, the City hereby agrees to pay Consultant on the basis of monthly statements for time billed, including travel time, at the rate of Fifty -five Dollars ($55.00) per hour, plus out -of- pocket expenses, not to exceed Five Thousand Dollars ($5,000.00) without prior authority by the City or its duly appointed representative. Section 3 This contract may be terminated by either party upon thirty (30) days written notice. Section 4 The Consultant shall not assign any interest in this contract and shall not transfer any interest in same (whether by assignment or nova tion) without prior written consent of the City, provided, however, that claims for money due or to become due to the Consultant from the City may be assigned to a bank, trust company or other financial institution without such written consent. Notice of any such assignment or transfer shall be furnished promptly to the City. Section 5 Travel undertaken by Consultant and other out -of- pocket expenses will be reimbursed at cost upon submittal of a list of such expenditures with appropriate documentation. Section 6 The City shall make payments of monthly billings submitted by Consultant by approximately the 15th of a given month providing said billing is submitted to the City no later than the first of said given month. Section 7 All notices to the parties shall, unless otherwise requested in writing, be sent to the City and the Consultant at the addresses shown above. -2- AGREEMENT FOR CONSULTING SERVICES IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first above written. WITNESS: By: Title: WITNESS: By: -3- AGREEMENT FOR CONSULTING SERVICES CITY OF PORT ANGELES yam/ Date: EVENT FACILITY CONSULTANTS, INC. Don Jewell Title: PRESIDENT Date: G..A. {E (98 1. Event SK Facility Consultants Dear Don: Best regards, EVENT FACILITY CONSULTANTS Don Jewell, CFE President DJ /ew Encis: CC: Dave Flodstrom 4205 SW DCYM SVIEW COURT PORTLAND OREGON 97221 16 Jude 1981 `f 1 Mr. Don Frizzell, Director r,, Parks Recreation Department City of Port Angeles 140 West Front Street Port Angeles, Washington 98632 &e. 3. aS 7.i. 1ZI f In accordance with instructions from Dave Flodstrom, we are enclosing a copy of the proposed questionnaire regarding the conference /community center for Port Angeles. This form should be reproduced in an appropriate number. An additional copy is enclosed in the event one copy should be damaged. Also enclosed are the names and addresses of the Washington organizations to whoa the questionnaires should be mailed. We have attempted to eliminate any duplication but please ask your secretary to watch for any we may have overlooked. Along with each questionnaire, please enclose a stamped, return envelope addressed to the City Manager, City of Port Angeles, etc. As the responses begin to trickle back to Port Angeles, please forward them to our office for tabulation. Please be sure to keep an accurate count of the number of questionnaires mailed and also those returned for lack of correct address or other reason. We will, of course, have a count of those returned and those usable. If you have any questions or suggestions, please give me a call. 4 .s The City of Port Angeles is currently considering the feasibility of developing a center designed not only for conventions and conferences but for community activities and events as well. The purpose of this questionnaire is to inquirebas to your organization's possible interest in Port Angeles, Washington, as a convention /conference site and to define the requirements of your organization as to hotel /motel accommodations, meeting rooms, food functions, exhibition space, etc. The information provided will be of great value in determining the requirements for a facility capable of meeting those needs. If you are not the correct person to whom this inquiry should be addressed, please forward to the proper individual. An early response in the enclosed postage -paid envelope will be most helpful. Thank you for your assistance. 1. Name of organization 2. Address 3. Geographical area covered 4. How many conventions, conferences or exhibitions do you hold each year? What month or months? 5. Concerning your conventions: a. Number of registered delegates per convention How many non-delegates (spouses, exhibitors, etc.) normally attend? b. Do you usually have exhibits? Yes No If yes, number of booths and /or square feet of floor area required c. Maximum seating needed by your convention for its largest assembly Largest meal function d. Number of meeting rooms used simultaneously? 60/B CONVENTION /CONFERENCE QUESTIONNAIRE -1- City Manager City of Port Angeles 6. In considering meeting functions, how many of the following room capacities would be needed to meet the program requirements of your convention? Number of Rooms 25 to 50 people 51 to 100 people 101 to 150 people 151 to 200 people 201 to 300 people More than 300 people 7. How many hotel rooms are needed for your convention? 8. What hotel, motel, or city has your group used that best met your require- ments? (Name and Location) 9. When selecting the host city for your convention, how important are the following factors in your opinion? Convention /exhibit center Adequate meeting rooms in center Good restaurants Entertainment /Recreation Department stores, shops Convention bureau help Assistance from local members Reception from townspeople 10 Cities in which you have met during the past three years: 1981 1980 1979 60 /B -2- Capacity for Meeting Use Very Moderately Not Important Important Important 11. Has your group ever met in Port Angeles? Yes No If so, when? 12. Within the Pacific Northwest area, which cities do your organization con- sider as potential sites for conventions and /or supplementary (district, state, regional) meetings, conferences, workshops or seminars? 60 /B If not, why? Washington Seattle Spokane Tacoma Olympia Vancouver Yakima Wenatchee Tri- Cities Bellingham Port Angeles If not, why? Oregon Portland Salem Eugene Roseburg Medford Klamath Falls Bend Pendleton Seaside Astoria 13. If a modern, properly- equipped convention /exhibition facility were avail- able in Port Angeles, do you think your group would consider coming to Port Angeles? Yes No 14. Cities in which your convention is scheduled for future years: 1982 1983 1984 1985 1986 -3- 15. As an association manager, how would you rate Port Angeles, Washington as a convention site on the basis of the following criteria? Signed: Title: Convention facilities currently available Accessibility for membership Lodging accommodations Exhibit facilities Members of association to assist in meeting arrangements Acceptance by your membership 16 Any comments will be appreciated: Acceptable Satisfactory Not Acceptable -4- Mr. Don Jewell, President Event and Facility Consultants 4205 S. W. Downsview Court Portland, Oregon 97221 Dear Mr. Jewell: DF/jh cc: Councilmembers Clallam Co. Commissioners Don Frizzell, Dir. of Parks Rec. Rob Orton, Dir. of Admin. Serv. 4426.En githi- 5. ha,S 4 TOURIST MECCA OF THE NORTHWEST e 140 WEST FRONT STREET PORT ANGELES, WASHINGTON 98362 June 5, 1981 The City Council, at its June 2nd meeting, reviewed your May 18th letter and the attached contract. Upon completing that review, the Council approved the scope of work for Phase II of the Convention /Community Center study and approved the signing of the contract; however, the contract has been amended from the one which you initially sent me. The amendment comes in Section 6, the last sentence of that section. I have removed from the signed copy of the contract the reference to a 15% penalty for late payment. This item was removed simply because it is a deviation from the standard agreement.which the City has used in the past and feels is appropri- ate for contracting of professional services. With the exception of that one minor change, the Council is comfortable with the contract and eager to proceed with the second phase of the work. As suggested in your letter of May 18th, I would also propose that we immediately begin with the market verification activity and at the time you have determined that we have sufficient response to indicate the marketability of Port Angeles as a conven- tion site, that we would then meet with all interested parties to discuss the findings and hopefully, to discuss the next step in the process. Don Frizzell has indicated to me that he has talked with you about the material to be mailed out about the market verification analysis. If there is need for add- itional contact, I encourage you to continue to work through Don. If he is unavailable for whatever the reason, please feel free to contact me. Again, I look forward to the opportunity of working with you and have been very encouraged by the progress made in the first phase of this study. See you soon. Sincerely, 1 1,,,,_ Dave Flodstrom, P.E. City Manager SEAL .^J c AGREEMENT FOR CONSULTING SERVICES BE IT KNOWN, that effective on the t- day of _rte -�s�,� 19 the City of Port Angeles, whose address is 140 West Front Street, Port Angeles, Washington, 98362 (herein sometimes referred to as "City and Event Facility Consultants, whose address is 4205 SW Downsview Court, Portland, Oregon, 97221 (hereinafter sometimes referred to as "Consultant do hereby enter into a professional services contract under the following terms and conditions: WITNESSETH: WHEREAS, the City requires the services of Consultant with respect to the determination of needs and potential utilization of a conference/ community center in Port Angeles; and WHEREAS, Consultant by reason of his experience and expertise is capable of rendering such consulting services; and WHEREAS, such services are professional and non competitive in nature. NOW, THEREFORE, the City and the Consultant for and in considera- tion of the covenants and agreements hereinafter set forth, mutually agree as follows: Section 1 Consultant hereby agrees to perform the following Scope of Work: Advise in the final refinement of the overall project objec- tive. Verify assumptions regarding the convention market in the State of Washington; identify potential competition; undertake sufficient market surveys to confirm attitudes and probable use by state associations of the Port Angeles or Clallam County area as a convention site. Draft the most appropriate program of' proposed spaces to accomplish desired goals. Estimate probable operational costs and revenues. Recommend alternatives such as project phasing, development of a totally new center, or abandonment of the entire concept. Recommend a planned phasing process permitting City /County officials an opportunity to make go or no -go decisions at appropriate junctures. Identify benefits to the unincorporated areas of Clallam County should a convention /community facility be constructed and operated in the Port Angeles area. -1- AGREEMENT FOR CONSULTING SERVICES Section 2 In consideration of the services described above, the City hereby agrees to pay Consultant on the basis of monthly statements for time billed, including travel time, at the rate of Fifty -five Dollars ($55.00) per hour, plus out -of- pocket expenses, not to exceed Five Thousand Dollars ($5,000.00) without prior authority by the City or its duly appointed representative. Section 3 This contract may be terminated by either party upon thirty (30) days written notice. Section 4 The Consultant shall not assign any interest in this contract and shall not transfer any interest in same (whether by assignment or nova tion) without prior written consent of the City, provided, however, that claims for money due or to become due to the Consultant from the City may be assigned to a bank, trust company or other financial institution without such written consent. Notice of any such assignment or transfer shall be furnished promptly to the City. Section 5 Travel undertaken by Consultant and other out -of- pocket expenses will be reimbursed at cost upon submittal of a list of such expenditures with appropriate documentation. Section 6 The City shall make payments of monthly billings submitted by Consultant by approximately the 15th of a given month providing said billing is submitted to the City no later than the first of said given month. Section 7 All notices to the parties shall, unless otherwise requested in writing, be sent to the City and the Consultant at the addresses shown above. -2- AGREEMENT FOR CONSULTING SERVICES IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first above written. WITNESS: j -x` c- 717 Title: WITNESS: -3- AGREEMENT FOR CONSULTING SERVICES CITY OF PORT ANGELES BY l_ er,,�. e I f j �t� i Date: EVENT FACILITY CONSULTANTS, INC. By: Don Jewell Title: PRESIDENT Date: I YVvY;v:EW FL, :1 C F-_I:C l 9,L' Dn, Hodstrom C' `.y ?,onager of tort Angeles 110 ;lest Front Street Port Angeles, WA 98362 Dear Mr. Flodst! _r;;i: .5/ .2s ;1-1 /E Ga X\ e e We in or your letter dated 12 r 'dc, are r��cei pt o e d st� May 1981 and are pleased to learn that the City of Port Angeles and Claliam County are prepared to pro:.aed with further study pertaining to a proposed conference/community center. In r e v i e w i n g the Scope of Work as outlined, however, there are_ certa i n items on which we need clarification. Perhaps we should also outline for your approval our assumed plan for accomplishment of the tasks involved. Market Verifi;:af_ ion We will prepare a survey form that can be reproduced in your office. We will then provide a list of appropriate state /regional organizations to which this questionnaire should be .mailed, along with a stamped, self- addressed return envelope. Replies will be received by your office but forwarded to us for tabulating and evaluation. Functional Prgyram We will prepare a verbal program of the necessary and desired areas for the proposed facility. Any illustrative sketches or schematic plans requested will be billed as an extra cost. Financial Estimates We will be responsible for estimating probable operating costs and revenues. Remodeling and /or new construction costs must be the responsibility of an architectural firm of your choice. Time Frame We are prepared to begin work on this project within two weeks following receipt of your approval to proceed. It appears to me that the market verification should be our first undertaking. As soon as we have sufficient response to indicate the marketability of Port Angeles as a convention site (or lack of it) we will then develop our recommendations for an architectural program. At this point, it would seem we would have achieved sufficient direction to warrant a meeting of all concerned parties for an interim report and review of progress. This will also give Council Members and jewcAl Lo Flodstrom via l» 1931 Sincerely, EVENT FACILITY CONSULTANTS Don Jewell, CFE President DJ/ba (IPC W01/0) Enclosures Co:T,v r Jn cr) to c!irect we are haad- I—J o suqqc: Lk cict oF sh D3pendent upon the rosl,lts o nis ii1tii r,et:og, we \rould anticipat: proding with the ha of report, assisting developpent of probsole construccicn co',ts and, findlly, perhaps one final meeting to present our findings and conclusions. There may also be the need to meet in Port Angele3 with the architect, and/or perhaps the need to schedule one additional review session in Port Angeles. However, judging from the one of your letter, you are suggesting that travel costs be kept to a minimum. Assuming this plan will meet with your approval, we are enclosing herewith a draft agreement for your consideration. Should some addi- tional form he more desirable, please feel free to make any changes necessary. We have incluled $5,000 as a not-to-exceed figure, but understand that vie will be eYpected to complete the work in the most economical fash- ion possible. Please feel free to call or write if you have any questions or suT3es- tions. ^ENT FOR CON:..JLTI G SERVICES (T i'i, tit :frective on the day of 19 ;'n ri r,t Port Anr;eles, whose address is 140 West Front Street, Port =\n5- 1 ':1:,h1 ttoo, 78362 (herein sometimes referred to as "City"), ;•'I rlt y C•o,Isultants, who address is 4.205 SW Dc1, ;nsvie Cour, i _.,t ~r :qon, 07221 (hereinafter sometimes refei red to as uo he, o enter into d pro gal services contract ur iK=r texas and conditions. W I T N E S S E T F,: tvi; FREAS, the City requires the services of Consultant with respect to the determination of needs and potential utilization of a conference/ community center in Port Angeles; and WHEREAS, Consultant by reason of his experience and expertise is capable of rendering such consulting services; and WHEREAS, such services are professional and non competitive in nature. NOW, THEREFORE, the City and the Consultant for and in considera- tion of the covenants and agreements hereinafter set forth, mutually agree as follows: Section 1 Consultant hereby agrees to- perform the following Scope of Work: Advise in the final refinement of the overall project objec- tive. Verify assumptions regarding the convention market in the State of Washington; identify potential competition; undertake sufficient market surveys to confirm attitudes and probable use by state associations of the Port Angeles or Clallam County area as a convention site. Draft the most appropriate program of proposed spaces to accomplish desired goals. Estimate probable operational costs and revenues. Recommend alternatives such as project phasing, development of a totally new center, or abandonment of the entire concept. Recommend a planned phasing process permitting City /County officials an opportunity to make go or no -go decisions at appropriate junctures. Identify benefits to the unincorporated areas of Clallam► County should a convention /community facility be constructed and operated in the Port Angeles area. -1- AGREEMENT FOR CONSULTING SERVICES Sec;.ion 2 In consideration of th2 s2ryices described .'.+beve, th' City' hereby agrees to pay Consultant n the basis s a 1 e, s J c 4, i;•_ -�i, f monthly r- ��Kn.t�,_� for time billed including travel tii(�. at the rate of i f t.y -'i ;ve Dollars ($55.00) per hour, plus out-of-pocket expenses, not to exceed Five. Thousand Dollars ($5,000,00) without p!'ior authority by the City or its duly apuointed representative. Section 3 Tb s contract may be teminated by either party upon thirty (30) days written notice. Section 4 The Consultant shall not assign any interest in this contract and shall not transfer any interest in same (whether by assignment or nova tion) without prior written consent of the City, provided, however, that claims for money due or to become due to the Consultant from the City may be assigned to a- bank, trust company or other financial institution without such written consent. Notice of any such assignment or transfer shall be furnished promptly to the City. Section 5 Travel undertaken by Consultant and other out -of- pocket expenses will be reimbursed at cost upon submittal of a list of such expenditures with appropriate documentation. Section 6 The City shall make payments of monthly billings submitted by Consultant by approximately the 15th of a given month providing said billing is submitted to the City no later than the first of said given month. A late payment fee of 15% on any balances in excess of 30 days may be charged by the Consultant. Section 7 All notices to the parties shall, unless otherwise requested in writing, be sent to the City and the Consultant at the addresses shown above. -2- AGREEMENT FOR CONSULTING SERVICES IN WITNFS YIFPEOF, pactl:_!s have caused this Agreewent to b ex..1(„ut on the da,/ ani yE: 1 bove writt01. WITNESS: CITY OF PORT ANGELES Ti e Da it: -3- AGREEMENT FOR CONSULTING SERVICES EVENT FACILITY CONSULTANTS, INC. By: Don Jewel 1 Title: PRESIDENT Date: