HomeMy WebLinkAboutItem 07 - Local Economic DevelopmentITEM 0 1
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MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER
MEETING DATE: JUNE 5, 2001
SUBJECT: POLICY STATEMENT ON LOCAL ECONOMIC DEVELOPMENT
AND BUSINESS INCENTIVES
RECOMMENDATION:
City Council consider adopting a resolution establishing a comprehensive policy on
Local Economic Development and Business Incentives within the City of Grapevine, and
take any necessary action.
BACKGROUND:
Texas Local Government Code, Chapter 380 provides that the City may establish a
program to participate financially in the promotion of local economic development and
stimulation of business and commercial activity in the City. These programs are typically
reserved for large-scale developments under which the Opryland Hotel and Convention
Center, a destination hotel and convention center development would qualify.
The City Attorney has prepared a resolution expressing the City's interest in establishing
a Chapter 380 program and establishing a policy statement for this type of program.
The policy statement establishes minimum threshold requirements to be eligible for an
Expedited and Concurrent Bidding and Construction Procedure including at a minimum,
a 1,500 -room rate major project hotel and convention center containing at least 350,000
square -feet and ownership or a new or renewable lease with a minimum 20 -year term
for the project.
The policy statement further establishes Basic Principles of Expedited and Concurrent
Bidding and Construction Procedures including an agreement between the applicant
and the City establishing minimum requirements in the event the applicant meets the
threshold requirements to be eligible for the program. Included in those minimum
requirement items are:
• the City's review and approval of all construction plans, both public and private
• the development of a construction schedule
• the City's approval of the applicant's contract with it's general contractor and/or
subcontractors
May 31, 2001 (10:45AM)
AGREEMENT FOR PROFESSIONAL SERVICES
STATE OF TEXAS §
COUNTY OF TARRANT §
This AGREEMENT is entered into by the City of Grapevine, hereinafter called "OWNER" and Freese and Nichols,
Inc., hereinafter called "FNI". In consideration of the AGREEMENTS herein, the parties agree as follows:
L EMPLOYMENT OF FNI: In accordance with the terms of this AGREEMENT: OWNER agrees to employ
FNI; FNI agrees to perform professional services in connection with the Project; OWNER agrees to pay to
FNI compensation. The Project is described as follows: Water System Operating Plan and Update of Water
and Wastewater Rate Study.
II. SCOPE OF SERVICES: FNI shall render professional services in connection with Project as set forth in
Attachment SC - Scope of Services and Responsibilities of OWNER which is attached to and made apart of
this AGREEMENT.
III. COMPENSATION: OWNER agrees to pay FNI for all professional services rendered under this
AGREEMENT in accordance with Attachment CO - Compensation which is attached hereto and made a part
of this AGREEMENT. FNI shall perform professional services as outlined in the "Scope of Services" for a
lump sum fee of $22,000.00. Details concerning the fee are included in Attachment CO.
If FNI's services are delayed or suspended by OWNER, or if FNI's services are extended for more than 90
days through no fault of FNI, FNI shall be entitled to equitable adjustment of rates and amounts of
compensation to reflect reasonable costs incurred by FNI in connection with such delay or suspension and
reactivation and the fact that the time for performance under this AGREEMENT has been revised.
IV. TERMS AND CONDITIONS OF AGREEMENT: The Terms and Conditions of Agreement as set forth
as Attachment TC shall govern the relationship between the OWNER and FNI.
Nothing under this AGREEMENT shall be construed to give any rights or benefits in this AGREEMENT to anyone
other than OWNER and FNI, and all duties and responsibilities undertaken pursuant to this AGREEMENT will be
for the sole and exclusive benefit of OWNER and FNI and not for the benefit of any other party.
This AGREEMENT constitutes the entire AGREEMENT between OWNER and FNI and supersedes all prior written
or oral understandings.
This contract is executed in two counterparts.
IN TESTIMONY HEREOF, they have executed this AGREEMENT, the day of , 2001.
ATTEST: CITY OF GRAPEVINE
(OWNER)
ATTEST:
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By:
FREESE ANP NICHOLS, INC. C,
FNI
OWNER
SCOPE OF SERVICES AND RESPONSIBILITIES OF OWNER
ARTICLE I
ATTACHMENT SC
BASIC SERVICES: FNI shall render the following professional services in connection with the
devciopment of the Project:
1. Meet with Grapevine staff to discuss the study and obtain necessary data, including the following:
• Contracts to purchase water from Dallas Water Utilities, Trinity River Authority, and
Dallas County Park Cities Municipal Utility District.
• Contracts to purchase storage space in Lake Grapevine from the Corps of Engineers.
• Information on actual population, connections, water use, wastewater flow, operating
expenses, capital expenditures, revenue, and debt service for fiscal year 1999-2000.
• Information on budgeted connections, water use, wastewater flow, operating expenses,
capital expenditures, revenue, and debt service for fiscal year 2000-2001.
• Historical data on use for golf course irrigation and projections of future use.
• Contracts to supply water to golf courses.
• Information on projected water needs for Opryland and expected start-up date.
• Information on recent impact fee income.
• Projections of capital expenditures and bond sales for the next 5 years.
• Information on existing commitments for future debt service by fiscal year.
• Information on the water and wastewater fund working capital as of the end of fiscal year
1999-2000.
• Information on the status of settlement negotiations on Lake Grapevine water rights and
related matters.
• Other information that will be useful in the proposed study.
Obtain information from city staff (Department of Public Works and Finance Department) on
desired output and format for the study, expected trends in growth for Grapevine, and other issues.
2. Input the data obtained from the city into existing spreadsheet models of historical and projected
water and wastewater fund income and expenses. Review the previous projections of population,
connections, water use, wastewater flow, revenue, and expenses and compare them with the nein
data. Develop revised projections of the following:
• Population
• Water and sewer connections
• Water use
• Wastewater flow
• Revenue
• Operating and other expenses
Meet with Grapevine staff to review the revised projections.
3. Develop a preliminary operating plan for Grapevine's water supply. Determine how much water
should be used from each source to meet projected demands under normal conditions, dry -year
FNI
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OWNER
(high use) conditions, normal conditions with Grapevine's storage in Lake Grapevine reduced, and
dry -year (high use) conditions with Grapevine's storage in Lake Grapevine reduced. Analyze the
costs and benefits of expanding the capacity of Grapevine's water treatment plant.
4. Incorporate the revised projections of population, water and sewer connections, water use,
wastewater flow, revenue, and operating and other expenses into the existing rate study spreadsheet
model, and extend the model through fiscal year 2006-07. Confirm the need and amount for the
previously projected rate increase for 2001-02. Identify other rate increases needed.
5. Confirm the financial adequacy of the operating plan for Grapevine's water supply.
6. Update the comparison of water and wastewater rates with the rates charged by other Metroplex
cities of similar population.
7: Meet with city staff to review the projected rate increases, the projected financial performance of
the water and wastewater system, and the operating plan for Grapevine's water supply. Prepare a
draft report describing the analysis and provide Grapevine with five copies for review. Revise the
report as appropriate based on staff comments, and provide 25 copies of the final report. Present
the results of the study to Grapevine's city council.
ARTICLE II
ADDITIONAL SERVICES: Additional Services to be performed by FNI, if authorized by OWNER, which
are not included in the above described basic services, are described as follows:
A. Preparing data and reports for assistance to OWNER in preparation for hearings before regulatory agencies,
courts, arbitration panels or any mediator, giving testimony, personally or by deposition, and preparations
therefore before any regulatory agency, court, arbitration panel or mediator.
B. Assisting OWNER in the defense or prosecution of litigation in connection with or in addition to those services
contemplated by this AGREEMENT. Such services, if any, shall be furnished by FNI on a fee basis negotiated
by the respective parties outside of and in addition to this AGREEMENT.
C. Preparing statements for invoicing or other documentation for billing other than for the standard invoice for
services attached to this professional services agreement.
D. Any other items not specifically listed in the above scope of services shall be considered an additional service.
ARTICLE III
TIME OF COMPLETION: FNI is authorized to commence work on the Project upon execution of this
AGREEMENT and agrees to complete the services in accordance with the following schedule:
Issue draft report to OWNER 5 weeks after execution of this AGREEMENT
Final report to OWNER 2 weeks after receipt of OWNER comments from the draft, except that no work will be done
July 7 through July 28.
If FNI's services are delayed through no fault of FNI, FNI shall be entitled to adjust contract schedule consistent with
the number of days of delay. These delays may include but are not limited to delays in OWNER or regulatory
f
FNI
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OWNER
reviews, delays on the flow of information to be provided to FNI, governmental approvals, etc. These delays may
result in an adjustment to compensation as outlined on the face of this AGREEMENT and in Attachment CO.
ARTICLE IV
RESPONSIBILITIES OF OVY NER: OWNER shall perform the following in a timely manner so as not to delay
the services of FNI:
A. Designate in writing a person to act as OWNER's representative with respect to the services to be rendered
under this AGREEMENT. Such person shall have contract authority to transmit instructions, receive
information, interpret and define OWNER's policies and decisions with respect to FNI's services for the
Project.
B. Provide all criteria and full information as to OWNER's requirements for the Project.
C. Assist FNI by placing at FNI's disposal all available information pertinent to the Project including previous
reports and any other data relative to the Project.
D. Examine all studies, reports, sketches, drawings, specifications, proposals and other documents presented by
FN`1, obtain advice of an attorney, insurance counselor and other consultants as OWNER deems appropriate for
such examination and render in writing decisions pertaining thereto within a reasonable time so as not to delay
the services of FNI.
E. Give prompt written notice to FNI whenever OWNER observes or otherwise becomes aware of any
development that affects the scope or timing of FNI's services.
F. Furnish, or direct FNI to provide, Additional Services as stipulated in Attachment SC, Article II of this
AGREEMENT or other services as required.
G. Bear all costs incident to compliance with the requirements of this Article IV.
ARTICLE V
DESIGNATED REPRESENTATIVES: FNI and OWNER designate the following representatives:
Owner's Designated Representative - Name: Mr. Matt Singleton
Address: P.O. Box 95104, Grapevine, TX 76051
Phone: (817) 410-3328
Fax: (817) 410-3051
E-mail:
Owner's Accounting Representative -
FNI's Project Manager -
FNI's Accounting Representative -
Name:_
Address:
Phone:_
Fax:
E-mail:
Name: Torn Gooch
4055 International Plaza, Suite 200
Fort Worth, Texas 76109-4895
Phone: (817) 735-7314
Fax: (817) 735-7491
E-mail: tcg@freese.com
Name: Terri Witcher
FNI U
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OWNER
4055 International Plaza, Suite 200
Fort Worth, Texas 76109-4895
Phone: (817) 735-7339
Fax: (817) 735-7491
E-mail: ttw@freese.com
F N I
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OWNER
ATTACHMENT CO
COMPENSATION
A. Not to Exceed: The total fee for Basic Services in Attachment SC shall be a lump sum fee of Twenty Two Thousand Dollars ($22,000)
If FNI sees the Scope of Services changing so that Additional Services are are needed, including but not limited to those services described as
are needed, including but not limited to those services described as Additional Services in Attachment SC, FNI will notify OWNER for OWNER's
approval before proceeding. Additional Services shall be computed base on the Schedule of Charges.
B. Schedule of Charges for Additional Rork:
POSITION
MIN
MAX
PRINICIPAL
185.46
235.56
SENIOR CONSULTANT
87.65
266.48
MANAGER -LOCAL OFFICE
147.66
183.00
GROUP MANAGER
158.76
196.42
SR DISCIPLINE LEADER
176.47
208.87
DISCIPLINE LEADER
82.90
179.07
PROGRAM MANAGER
104.36
130.45
ENGINEER VI
110.67
181.50
ENGINEER V
103.57
156.05
ENGINEER IV
91.82
119.05
ENGINEEk INTERN 111
81.50
103.80
ENGINEER INTERN II
72.97
9821
ENGINEER INTERN 1
66.94
8325
ELECTRICAL ENGINEER VI
119.14
148.93
ELECTRICAL ENGINEER V
10536
138.28
ELECTRICAL ENGINEER IV
109.60
126.96
ELECTRICAL ENGINEER INTERN II
84.97
91.01
MECHANICAL ENGINEER VI
141.09
161.52
MECHANICAL ENGINEER IV
85.11
10638
MECHANICAL ENGINEER INTERN 111
73.60
96.60
RESIDENT ENGINEER
115.75
151.93
SENIOR RESIDENT REPRESENTATIVE
90.11
168.68
CONSTRUCTION PHASE PROJECT MANAGER
82.07
114.74
SPECIALTY OBSERVER
79.60
104.47
SR DESIGNER
92.05
120.81
DESIGNER II
96.64
119.95
DESIGNER I
59.73
105.93
SENIOR ENGINEERING TECHNICIAN
91.57
106.83
ENGINEERING TECHNICIAN
68.54
93.82
TECHNICIAN II
57.12
80.29
TECHNICIAN 1
55.16
72.98
DRAFTER
47.12
58.81
ESTIMATOR/SCHEDULER
67.79
78.57
DOCUMENT CONTROL CLERK
46.81
58.51
ENVIRONMENTAL SCIENTIST V
89.25
105.30
ENVIRONMENTAL SCIENTIST IV
71.34
89.18
ENVIRONMENTAL SCIENTIST III
64.37
83.44
ENVIRONMENTAL SCIENTIST
53.73
58.81
SENIOR ARCHITECT
119.10
148.88
ARCHITECT V
110.71
131.09
ARCHITECT IV
81.96
102.45
ARCHITECT III
89.45
111.82
ARCHITECT II
78.11
85.62
ARCHITECT I
62.30
72.42
HYDROLOGIST V
8721
109.01
HYDROLOGIST IV
78.30
97.87
HYDROLOGIST I
56.80
71.00
GEOTECHNICAL ENGINEER VI
124.60
155.75
SENIOR GEOLOGIST
89.96
112.46
WORD PROCESSING/SECRETARIAL
46.91
54.99
OPERATION$ ANALYST
67.78
96.89
CONTRACT ADMINISTRATOR
"66.90
83.63
INFORMATION SERVICES CLERK
35.24
46.14
CO-OP
24.13
48.73
The ranges and individual salaries will be adjusted annually.
RATES FOR INHOUSE SERVICES
Computer and CAD
Calcomp Plotter
PC CAD Stations $10.00 per hour
Bond $2.00 per plot
PC Stations $8.00 per hour
Color $3.50 per plot
VAX Computer $20.00 per hour
Vellum $4.00 per plot
Mylar $10.00 per plot
Print Shop
Bluelines
$0.08 per square foot
Offset and Xerox Copies
$0.07 per single side copy
Offset and Xerox Copies
$0.14 per double side copy
GBC Binding(Reg. Cover)
$2.00 per book
GBC Binding(Emboss. Cover)
$4,00 per book
Tape Binding(Reg. Cover)
$1,75 per book
Tape Binding(Emboss. Cover)
$3.75 per book
Testing Apparatus
Density Meter $350.00 per month
Gas Detection $10.00 per test
OTHER DIRECT EXPENSES
Outer direct expenses are reimbursed at actual cost times a multiplier of 1.15. They include outside printing and reproduction
expense, communication expense, travel, transportation and subsistence away from Fort Worth and other miscellaneous( "7
expenses directly rel_'.zd to the work, including costs of laboratory analysis, tests, and other work required to be done by
independent persons other than staff members.
FNI
cpm:A 03-31-01 OXVNER
TERMS AND CONDITIONS OF AGREEMENT
ATTACHMENT TC
1. DEFINITIONS: The term Owner as used herein refers to The City of Grapevine
The term FNI as used herein refers to Freese and Nichols, Inc., its employees and agents; also its subcontractors and their
~u employees and agents. As used herein, Services refers to the professional services performed by Freese and Nichols pursuant
to the AGREEMENT.
CHANGES: Owner, without invalidating the AGREEMENT, may order changes within the general scope of the WORK
required by the AGREEMENT by altering, adding to and/or deducting from the WORK to be performed. If any change
under this clause causes an increase or decrease in FNI's cost of, or the time required for, the performance of any part of the
Services under the AGREEMENT, an equitable adjustment will be made by mutual agreement and the AGREEMENT
modified in writing accordingly.
3. TERMINATION: The obligation to provide services under this AGREEMENT may be terminated by either party upon
ten days' written notice. In the event of termination, FNI will be paid for all services rendered and reimbursable expenses
incurred to the date of termination and, in addition, all reimbursable expenses directly attributable to termination.
4. CONSEQUENTIAL DAMAGES: In no event shall FNI or its subcontractors be liable in contract, tort, strict liability,
warranty, or otherwise for any special, indirect, incidental or consequential damages, such as loss of product, loss of use of
the equipment or system, loss of anticipated profits or revenue, non -operation or increased expense of operation or other
equipment or systems.
5. INFORMATION FURNISHED BY OWNER: Owner will assist FNI by placing at FNI's disposal all available
information pertinent to the Project including previous reports and any other data relative to design or construction of the
Project. FNI shall have no liability for defects or negligence in the Services attributable to FNI's reliance upon or use of data,
design criteria, drawings, specifications or other information furnished by Owner and Owner agrees to indemnify and hold
FNI harmless from any and all claims and judgments, and all losses, costs and expenses arising therefrom. FNI shall disclose
to Owner, prior to use thereof, defects or omissions in the data, design criteria, drawings, specifications or other information
furnished by Owner to FNI that FNI may reasonably discover in its review and inspection thereof.
5. INSURANCE: FNI shall provide to Owner certificates of insurance which shall contain the following minimum coverage
(All limits in thousands):
Commercial General Liability
General Aggregate $2,000
Automobile Liability (Any Auto)
CSL $1,000
Workers' Compensation
Each -Accident $500
Professional Liability
$3,000 Annual Aggregate
7. SUBCONTRACTS: If, for any reason, at any time during the progress of providing Services, Owner determines that
any subcontractor for FNI is incompetent or undesirable, Owner will notify FNI accordingly and FNI shall take
immediate steps for cancellation of such subcontract. Subletting by subcontractors shall be subject to the same
regulations. Nothing contained in the AGREEMENT shall create any contractual relation between any subcontractor
and Owner.
8. OWNERSHIP OF DOCUMENTS: All drawings, reports data and other project information developed in the
execution of the Services provided under this AGREEMENT shall be the property of the Owner upon payment of FNI's
fees for services. FNI may retain copies for record purposes. Owner agrees such documents are not intended or
represented to be suitable for reuse by Owner or others. Any reuse by Owner or by those who obtained said documents
from Owner without written verification or adaptation by FNI will be at Owner's sole risk and without liability or legal
exposure to FNI, or to FNI's independent associates or consultants, and Owner shall indemnify and hold harmless FNI
and FNI's independent associates and consultants from all claims, damages, losses and expenses including attorneys' fees
arising out of or resulting therefrom. Any such verification or adaptation will entitle FNI to further reasonable
compensation. FNI may reuse all drawings, report data and other project information in the execution of the Services
provided under this AGREEMENT in FNI's other activities. Any reuse by FNI will be at FNI's sole risk and without
liability or legal exposure to Owner, and FNI shall indemnify and hold harmless Owner from all claims, damages, losses
and expenses including attorneys' fees arising out of or resulting therefrom.
FNI
OWNER
3. POLLUTANTS AND HAZARDOUS WASTES: It is understood and agreed that FNI has neither created nor
contributed to the creation or existence of any hazardous, radioactive, toxic, irritant, pollutant, or otherwise dangerous
substance or condition at the site, if any, and its compensation hereunder is in no way commensurate with the potential
risk of injury or loss that may be caused by exposures to such substances or conditions. The parties agree that in
performing the Services required by this AGREEMENT, FNI does not take possession or control of the subject site, but
acts as an invitee in performing the services, and is not therefore responsible for the existence of any pollutant present
on or migrating from the site. Further, FNI shall have no responsibility for any pollutant during clean-up, transportation,
storage or disposal activities.
10. OPINION OF PROBABLE COSTS: FNI will furnish an opinion of probable project development cost based on
present day cost, but does not guarantee the accuracy of such estimates. Opinions of probable cost, financial evaluations,
feasibility studies, economic analyses of alternate solutions and utilitarian considerations of operations and maintenance
costs prepared by FNI hereunder will be made on the basis of FNI's experience and qualifications and represent FNI's
judgement as an experienced and qualified design professional. It is recognized, however, that FNI does not have control
over the cost of labor, material, equipment or services furnished by others or over market conditions or contractors'
methods of determining their prices.
11. CONSTRUCTION REPRESENTATION: If required by the AGREEMENT, FNI will furnish Construction
Representation according to the defined scope for these services. FNI will observe the progress and the quality of work
to determine in general if the work is proceeding in accordance with the Contract Documents. In performing these
services, FNI will endeavor to protect Owner against defects and deficiencies in the work of Contractors; FNI will report
any observed deficiencies to Owner, however, it is understood that FNI does not guarantee the Contractor's performance,
nor is FNI responsible for the supervision of the Contractor's operation and employees. FNI shall not be responsible for
the means, methods, techniques, sequences or procedures of construction selected by the Contractor, or the safety
precautions and programs incident to the work of the Contractor. FNI shall not be responsible for the acts or omissions
of any person (except his own employees or agent) at the Project site or otherwise performing any of the work of the
Project. If Owner designates a person to serve in the capacity of Resident Project Representative who is not a FNI's
employee or FNI's agent, the duties, responsibilities and limitations of authority of such Resident Project
Representative(s) will be set forth in writing and made a part of this AGREEMENT before the Construction Phase of
the Project begins.
12. PAYMENT: Progress payments may be requested by FNI based on the amount of services completed. Payment for
the services of FNI shall be due and payable upon submission of a statement for services to OWNER. Statements for
services shall not be submitted more frequently than monthly. Any applicable new taxes imposed upon services,
expenses, and charges by any governmental body after the execution of this AGREEMENT will be added to FNI's
compensation.
If OWNER fails to make any payment due FNI for services and expenses within thirty (30) days after receipt of FNI's
statement for services therefore, the amounts due FNI will be increased at the rate of one percent (I %) per month from
said thirtieth (30th) day, and, in addition, FNI may, after giving seven (7) days' written notice to OWNER, suspend
services under this AGREEMENT until FNI has been paid in full, all amounts due for services, expenses and charges.
13. ARBITRATION: No arbitration arising out of,- or relating to, this AGREEMENT involving one party to this
AGREEMENT may include the other party to this AGREEMENT without their approval.
14. SUCCESSORS AND ASSIGNMENTS: OWNER and FNI each are hereby bound and the partners, successors,
executors, administrators and legal representatives of OWNER and FNI are hereby bound to the other party to this
AGREEMENT and to the partners, successors, executors, administrators and legal representatives (and said assigns) of
such other party, in respect of all covenants, agreements and obligations of this AGREEMENT.
Neither OWNER nor FNI shall assign, sublet or transfer any rights under or interest in (including, but without limitation,
moneys that may become due or moneys that are due) this AGREEMENT without the written consent of the other, except
to the extent that any assignment, subletting or transfer is mandated by law or the effect of this limitation may be
restricted by law. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will
release or discharge the assignor from any duty or responsibility under this AGREEMENT. Nothing contained in this
paragraph shall prevent FNI from employing such independent associates and consultants as FNI may deem appropriate
to assist in the performance of services hereunder.
15. PURCHASE ORDERS: If a Purchase Order is used to authorize FNI's Services, only the terms, conditions/instructions
typed on the face of the Purchase Order shall apply to this AGREEMENT. Should there be any conflict between the
Purchase Order and the terms of this AGREEMENT, then this AGREEMENT shall prevail and shall be determinative
of the conflict.
FNI
OWNER