HomeMy WebLinkAbout06-101 - Gardner Johnson LLC - Tukwila International Boulevard (TIB) Corridor•
Contract No. /(46 d -- l0
CONTRACT FOR SERVICES
This Agreement is entered into by and between the City of Tukwila, Washington, a
noncharter optional municipal code city hereinafter referred to as "the City", and Gardner
Johnson, LLC, hereinafter referred to as "the Contractor", whose principal office is located at
119 First Avenue South, Suite 410, Seattle, Washington.
WHEREAS, the City has determined the need to have certain services performed
for its citizens but does not have the personnel or expertise to perform such services; and
WHEREAS, the City desires to have the Contractor perform such services
pursuant to certain terms and conditions; now, therefore,
IN CONSIDERATION OF the mutual benefits and conditions hereinafter
contained, the parties hereto agree as follows:
1. Scope and Schedule of Services to be Performed by Contractor. The
Contractor shall perform those services described on Exhibit A attached hereto and
incorporated herein by this reference as if fully set forth. In performing such services, the
Contractor shall at all times comply with all Federal, State, and local statutes, rules and
ordinances applicable to the performance of such services and the handling of any funds used
in connection therewith. The Contractor shall request and obtain prior written approval from
the City if the scope or schedule is to be modified in any way.
2. Compensation and Method of Payment. The City shall pay the Contractor
for services rendered according to the rate and method set forth on Exhibit B attached hereto
and incorporated herein by this reference. The total amount to be paid shall not exceed
eighteen thousand dollars ($18,000).
3. Contractor Budget. The Contractor shall apply the funds received under this
Agreement within the maximum limits set forth in this Agreement. The Contractor shall
request prior approval from the City whenever the Contractor desires to amend its budget in
any way.
4. Duration of Agreement. This Agreement shall be in full force and effect for a
period commencing November 1, 2006 and ending January 31, 2007 unless sooner terminated
under the provisions hereinafter specified.
5. Independent Contractor. Contractor and City agree that Contractor is an
independent contractor with respect to the services provided pursuant to this Agreement.
Nothing in this Agreement shall be considered to create the relationship of employer and
employee between the parties hereto. Neither Contractor nor any employee of Contractor
shall be entitled to any benefits accorded City employees by virtue of the services provided
under this Agreement. The City shall not be responsible for withholding or otherwise
deducting federal income tax or social security or contributing to the State Industrial
Insurance Program, or otherwise assuming the duties of an employer with respect to the
Contractor, or any employee of the Contractor.
6. Indemnification. The Contractor shall indemnify, defend and hold harmless
the City, its officers, agents and employees, from and against any and all claims, losses or
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CC. 7,^)aN cQ. .))Dl lI
liability, including attorney's fees, arising from injury or death to persons or damage to
property occasioned by any act, omission or failure of the Contractor, its officers, agents and
employees, in performing the work required by this Agreement. With respect to the
performance of this Agreement and as to claims against the City, its officers, agents and
employees, the Contractor expressly waives its immunity under Title 51 of the Revised Code
of Washington, the Industrial Insurance Act, for injuries to its employees, and agrees that the
obligation to indemnify, defend and hold harmless provided for in this paragraph extends to
any claim brought by or on behalf of any employee of the Contractor. This waiver is mutually
negotiated by the parties. This paragraph shall not apply to any damage resulting from the
sole negligence of the City, its agents and employees. To the extent any of the damages
referenced by this paragraph were caused by or resulted from the concurrent negligence of
the City, its agents or employees, this obligation to indemnify, defend and hold harmless is
valid and enforceable only to the extent of the negligence of the Contractor, its officers, agents,
and employees.
7. Record Keeping and Reporting.
A. The Contractor shall maintain accounts and records, including
personnel, property, financial and programmatic records which sufficiently and properly
reflect all direct and indirect costs of any nature expended and services performed in the
performance of this Agreement and other such records as may be deemed necessary by the
City to ensure the performance of this Agreement.
B. These records shall be maintained for a period of seven (7) years after
termination hereof unless permission to destroy them is granted by the office of the archivist
in accordance with RCW Chapter 40.14 and by the City.
8. Audits and Inspections. The records and documents with respect to all
matters covered by this Agreement shall be subject at all times to inspection, review or audit
by law during the performance of this Agreement.
9. Termination. This Agreement may at any time be terminated by the City
giving to the Contractor thirty (30) days written notice of the City's intention to terminate the
same. Failure to provide products on schedule may result in contract termination.
10. Discrimination Prohibited. The Contractor shall not discriminate against
any employee, applicant for employment, or any person seeking the services of the Contractor
to be provided under this Agreement on the basis of race, color, religion, creed, sex, age,
national origin, marital status or presence of any sensory, mental or physical handicap.
11. Assignment and Subcontract. The Contractor shall not assign or subcontract
any portion of the services contemplated by this Agreement without the written consent of
the City.
12. Entire Agreement. This Agreement, including Exhibit C regarding General
Limiting Conditions, contains the entire Agreement between the parties hereto and no other
Agreements, oral or otherwise, regarding the subject matter of this Agreement, shall be
deemed to exist or bind any of the parties hereto. Either party may request changes in the
agreement. Proposed changes which are mutually agreed upon shall be incorporated by
written amendments to this Agreement.
13. Notices. Notices to the City of Tukwila shall be sent to the following
addresses:
2
City Clerk
City of Tukwila
6200 Southcenter Blvd.
Tukwila, Washington 98188
Economic Development Administrator
City of Tukwila
6200 Southcenter Blvd.
Tukwila, WA 98188
Notices to the Contractor shall be sent to the address provided by the Contractor
upon the signature line below.
14. Applicable Law; Venue; Attorney's Fees. This Agreement shall be governed
by and construed in accordance with the laws of the State of Washington. In the event any
suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the
parties specifically understand and agree that venue shall be properly laid in King County,
Washington. The prevailing party in any such action shall be entitled to its attorney's fees and
costs of suit.
7L
DATED this lca day of
CITY OF TUKWILA
Mayor, Steven M. Mullet
ATTEST/ AUTHENTICATED:
e E. Cantu, MC, City Clerk
APPROVED AS TO FORM:
Office of the City Attorney
BY:
Last printed 11/3/2006 1:39:00 PM 3
CONTRACTOR: cil•A5—
BY:
Title:
p
Printed Name: 4r -V-‘ 0 c t --t‘
ADDRESS:
Gardner Johnson, LLC
119 First Avenue South, Suite 410
Seattle, WA 98104
GARDNER
JOHNSON
EXHIBIT A
SCOPE OF WORK
Friday, November 3, 2006
Mr. Derek Speck
Economic Development Administrator
CITY OF TUKWILA
6200 Southcenter Blvd.
Tukwila, WA 98188
VIA FACSIMILE
SUBJECT: TUKWILA INTERNATIONAL BOULEVARD CORRIDOR
Dear Derek:
Pursuant to our recent meeting, we are pleased to submit this draft scope -of -work
pertinent to professional services relative to the above subject.
It is our understanding that the CITY OF TUKWILA continues in its consideration as to the
vitality of the Tukwila International Boulevard corridor (TIBC), which extends from
SR599 to S 130th Street. Within this area, the City also owns an approximately 5 -acre
site located North and south of S 144th Street on the East side of Tukwila International
Boulevard. Current zoning on the site is NCC (Neighborhood Commercial Center) and
HDR (High Density Residential).
Against this background, the goal of our involvement is to evaluate the development
opportunities achievable at the subject property as well as to recommend adjustments to
the local zoning code that may function to encourage additional development in the
subject area. Specific objectives of this assignment are as follows:
1. Prepare an analysis of the TIBC that will function as a baseline from which
recommendations can be made.
2. Evaluate local development trends that are or will be affecting and influencing the
development of residential and commercial uses in the subject location.
157, YESLER WAY, SUITE 508, SEATTLE, WA 98104
206/442-9200 206/442-
9201 (FAX)
3. Translate market findings into development recommendations, addressing for each
land use: market demand, market positioning (i.e., product type(s), target market,
orientation, etc.) and development scale.
PROJECT APPROACH
GARDNER JOHNSON'S approach to land needs analysis is based on thorough research,
quantitative analysis and the application of development experience and knowledge.
While we would expect that the final work plan would be negotiated at the
commencement of this assignment, the following is a more detailed overview of the
approach we would recommend:
FUTURE LAND NEED ASSESSMENT
Task 1— Kick -Off Meeting
Conduct a kick-off meeting with representatives of the City to establish methods for
on-going communication and project coordination.
Task 2 - Prepare an Evaluation of Future Residential Development Need in the
TIBC.
a. Characterize recent employment and population growth in the Tukwila TIBC
area, including the geographic distribution of growth within the area.
Forecast the composition and distribution of growth in the short and long term
in the metropolitan area. Characterize local and proximate employers and
employment concentrations.
b. Summarize recent and projected demographic trends relating to housing
demand. Specific socioeconomic variables that would be examined would
include population, household income levels, household composition and other
pertinent factors. Demographic forecasts would include an analysis of
internal growth, as well as migration patterns.
c. Evaluate and summarize overall residential trends in the study area,
including the distribution of housing stock by type, building permit trends,
rent trends, sales price trends, average market times, vacancy rates by
product type over time, turnover rates and concessions offered.
d. Forecast changes in the housing market by housing type, based upon historic
trends, anticipated new product introductions and forecasted changes in
demographic characteristics. Convert our forecasts into demand for housing
products by tenure, type, income range, age range and household size. We
would use GARDNER JOHNSON'S proprietary model, which would be
calibrated based upon observed trends in the study area. The result would be
a forecast over the short-term (2 years) and medium term (5 years). The
CITY OF TUKWILA PAGE 2
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forecast would segment housing demand by age and income cohort, yielding
demand estimates by income as well as age distribution.
Task 3 - Prepare an Evaluation of Future Commercial Land Need in the TIBC.
a. Analyze key regional macroeconomic variables, particularly the sectoral
employment growth patterns and projections already produced, which have a
bearing on the demand for commercial space, specifically office and retail.
b. Evaluate and summarize overall office trends in the study area, including
class, use and orientation, lease rate trends, vacancy rates by product type
over time, turnover rates and concessions offered.
c. Based on office trends delineated above, determine the capacity for existing
office space to accommodate future office space needs.
d. Develop office space demand forecasts for the TIBC based on the following:
historical office space absorption trends, local growth in office space -using
employment and other qualitative demand factors.
e. Reconcile demand projections for office space within the context of historical
office trends determined above. Quantify future office space need based on
projected future demand as well as the TIBC existing capacity to
accommodate future growth.
f Evaluate and summarize overall retail trends in the study area, including type
and orientation, lease rate trends, vacancy rates by product type over time,
and turnover rates.
Utilizing household demographic projections achieved above, estimate annual
retail expenditures for selected categories of retail goods and translate these
expenditures into total demand on a square foot basis.
Reconcile demand projections for retail space within the context of historical
office trends determined above. Quantify future retail space need based on
projected future demand as well as the TIBC 's existing capacity to
accommodate future growth.
h. Convert our forecasts into demand for commercial land by likely use and
orientation. We would use GARDNER JOHNSON'S proprietary model, which
would be calibrated based upon observed trends in the study area. The result
would be a forecast over the short-term (2 years) and medium term (5-10
years).
g.
g.
TASK 4 — PREPARATION OF FINAL REPORT
a. Prepare the final report, assembling all memorandums and work products
produced. A detailed report would be produced, as well as an executive
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summary. The report would be provided for the City in Portable Document
Format (PDF).
b. Update and refine the development timing scenario chart that has been
provided to Gardner Johnson LLC by the City.
We look forward to working with you on this assignment. Please do not hesitate to call
us if you have any questions.
Sincerely,
GARDNER JOHNSON, LLC
Matthew Gardner
Principal
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GARDNER JOHNSON LLC
EXHIBIT B
SUBJECT: TUKWILA INTERNATIONAL BOULEVARD CORRIDOR
CLIENT: CITY OF TUKWILA
DATE: 11/03/2006
JOB NUMBER: 62277
TIME AND FEE SCHEDULE
The following matrix contains the professional fee and timing associated with the two
major stages of the analysis:
Work Scope Item Authorization
• Residential Analysis (Tasks 1, 2 &4) $7,900
• Commercial/Retail Analysis (Tasks 1, 3 &4) $8,500
The work product will be completed within four to six weeks.
Meetings not included in the scope of work are extra, and will be billed on a time and
expenses basis at our standard billing rates. Please see below for a summary of our
reimbursable expenses, billing arrangements, and limiting conditions.
REIMBURSABLE EXPENSES
As a percentage of Professional Fee:
> Production charges for graphics, preparation, editing, presentation materials, copying,
binding, paper and supplies, direct overhead and supervision. Graphics and report
production at $50 per hour, not to exceed 5% of the total professional fee amount.
Two copies of the report are included in this charge.
At Cost Plus a Handling and Administrative Charge of 20%:
> Additional reports, over the two that are provided in base production charge, will be
billed at $100 per report.
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> Long distance telephone charges for all assignments outside the Seattle Metropolitan
Area.
> Delivery charges (air freight, messenger service, postage etc.).
> Outside secondary data required for the completion of assignments such as on-line
database charges, other publications, reports maps and other miscellaneous out-of-
pocket charges.
> Airline Travel; auto rental, lodging and meals.
> Mileage at $.405 per mile.
BILLING ARRANGEMENTS
We will submit work progress statements the first of each month with payment due
within fifteen (15) days. In the event we do not receive such payment within said fifteen
(15) day period, the statement is considered past due and work on the assignment may
cease until such time that our billings are paid in full. Amounts outstanding thirty (30)
days or more from date of statement are subject to a rebilling charge of 1-1/2% per
month. Should you abandon the project during the progress of our work, billings will be
rendered up to the date of receipt of written request for said abandonment and shall
immediately become due and payable. In the event of any dispute relative to this
assignment, the prevailing party shall be entitled to attorney's fees and costs.
Any controversy or claim arising out of or relating to this contract, or the breach thereof,
shall be settled by arbitration administered by the American Arbitration Association
under its Commercial Arbitration Rules, and judgment on the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof. In the event of such
a dispute relative to this assignment, the prevailing party shall be entitled to fees and
costs.
Acceptance of this proposal -agreement is completed upon receipt of one executed copy
for our files. If we are not in receipt of a fully executed copy within thirty (30) days from
the date hereof, this proposal -agreement shall be of no further force and effect and shall
be deemed withdrawn.
ADDITIONAL SERVICES
In addition to the scope of work covered in this proposal, we will be available for work
such as team meetings, planning and design review work; presentation to investors,
lenders and/or public agencies; periodic updating of reports; financial analysis, design
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criteria, marketing plan; additional research work; and other activities related to this
project.
Additional team meetings and planning and design review sessions will be billed on the
basis of professional time and expense based on our normal hourly or per diem rate.
Proposals for other services, indicating scope of work, time and fee schedule, will be
submitted upon request.
Name
Position
Hourly Rate
Matthew Gardner
Principal
$210
Jerald Johnson
Principal
$200
Bill Reid
Senior Associate
$165
Jason Morgan
Senior Associate
$145
Joe Ferguson
Associate
$135
Matthew Hoffman
Market Analyst
$110
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GARDNER JOHNSON LLC
EXHIBIT C
GENERAL LIMITING CONDITIONS
SUBJECT: TUKWILA INTERNATIONAL BOULEVARD CORRIDOR
CLIENT: CITY OF TUKWILA
DATE: 11/03/2006
JOB NUMBER: 62277
GENERAL LIMITING CONDITIONS
Client understands and agrees that all reports provided by GARDNER JOHNSON LLC, are
subject to the following:
A. Reports are prepared to answer specific questions, based on background
information and assumptions provided by Client, concerning the areas
surrounding specific developments or projects. Use of this report should,
therefore, be limited to the purposes identified by Client, as recited in the Scope
of Work. Client is warned not to rely on this report, or the data it contains, to
analyze other developments or projects not identified in the Executive Summary,
as the specific factual context and assumptions may differ.
B. The information on which a reports analysis and conclusions are based is gathered
from third party sources that GARDNER JOHNSON LLC believes to be reliable.
However, because of the possibility of human or mechanical errors by outside
sources, GARDNER JOHNSON LLC does not guarantee the accuracy, adequacy, or
completeness of any information obtained from third parties. Likewise, analysis
based on such information cannot be guaranteed, as different input data could
yield different results.
C. Some raw data for the report may be collected from Client, or Client's
organization, employees or independent contractors. GARDNER JOHNSON LLC
assumes that such information is accurate and reliable, and will not attempt to
independently verify it unless specifically requested, in writing, by Client in this
agreement.
D. Reports prepared by GARDNER JOHNSON LLC are intended to assist Client in
making a business decision. Although GARDNER JOHNSON LLC believes such
reports to be accurate as of the date of publication, ultimately Client must exercise
its own business judgment about whether to pursue a given project, or take a
specific course of action. Reports generated by GARDNER JOHNSON LLC are
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intended to assist the Client's decision-making processes, not replace them. The
client is strongly encouraged to consult other sources, and to critically review the
contents and conclusions of GARDNER JOHNSON LLC's report(s).
E. Reports provided by GARDNER JOHNSON LLC are neither real estate appraisals,
nor broker's price opinions. GARDNER JOHNSON LLC's research associates are
not state certified or state licensed real estate appraisers under chapter 18.140
RCW, and GARDNER JOHNSON LLC is not a licensed real estate broker under
chapter 18.85 RCW. Reports produced by GARDNER JOHNSON LLC are,
therefore, not estimates of the value of any specific piece of property rather that
GARDNER JOHNSON LLC's reports are intended to reflect broad demographic and
economic factors, which could impact the marketing of particular types of
developments in specified geographic areas at particular times. If the Client
wants an estimate of a specific property's value, Client is advised to hire an
appraiser or real estate broker for that purpose.
F. All reports generated by GARDNER JOHNSON LLC are provided without
warranties, express or implied, including, without limitation, warranties of
merchantability, or fitness for, any particular purpose. Client agrees to indemnify
and hold harmless GARDNER JOHNSON LLC, its officers, employees and
independent contractors for any damages whatsoever (including, without
limitation, direct, indirect, general, special or consequential damages) related to,
or arising from, Client's use of this report.
G. To protect the Client, and to assure that the research results of GARDNER
JOHNSON LLC's work will continue to be accepted as objective and impartial by
the business community, it is understood that GARDNER JOHNSON LLC's fee for
the undertaking of this project is in no way dependent upon the specific
conclusions reached, or the nature of the advice given by GARDNER JOHNSON LC
in their report to the Client.
COPYRIGHT INFORMATION
It is also further agreed that all written materials contained in the report, including data
tables, graphs etc. are subject to copyright(s), which are the sole property of GARDNER
JOHNSON, LLC. This report is provided pursuant to a non-exclusive license for you to
use said copyrighted materials subject to the terms of this license, and subject to such
other guidelines and limitations as may be imposed by GARDNER JOHNSON, LLC from
time to time.
GARDNER JOHNSON acknowledges any information provided to the City under this
contract will become a public document subject to public disclosure laws and further
that the City intends to provide copies of the report to other organizations in an effort to
encourage development in Tukwila.
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GARDNER JOHNSON, LLC retains all ownership rights to its original work, and to any
and all changes, additions, alterations or improvements, and any derivative works are,
and shall be, the property of GARDNER JOHNSON, LLC. You agree to execute such
documents as requested by GARDNER JOHNSON, LLC, to effect an assignment to
GARDNER JOHNSON, LLC of any rights that you might acquire in such original work.
CITY OF TUKWILA PAGE 10