HomeMy WebLinkAboutContract CAG-20-040
AGREEMENT FOR CONSULTANT SERVICES
THIS AGREEMENT, dated December 10, 2019, is by and between the City of Renton (the "City"),
a Washington municipal corporation, and Aviation Management Consultant Group Inc.
("Consultant"), a Colorado Corporation. The City and the Consultant are referred to collectively
in this Agreement as the"Parties." Once fully executed by the Parties,this Agreement is effective
as of the last date signed by both parties.
1. Scope of Work: Consultant agrees to provide Airport Rate and Fees Consultant Services
as specified in Exhibit A, which is attached and incorporated herein and may hereinafter
be referred to as the "Work."
2. Changes in Scope of Work: The City, without invalidating this Agreement, may order
changes to the Work consisting of additions,deletions or modifications.Any such changes
to the Work shall be ordered by the City in writing and the Compensation shall be
equitably adjusted consistent with the rates set forth in Exhibit A — Proposal or as
otherwise mutually agreed by the Parties.
3. Time of Performance: Consultant shall commence performance of the Agreement upon
execution of this Agreement. All Work shall be performed by no later than December 31,
2021.
4. Compensation:
A. Amount. Total compensation to Consultant for Work provided pursuant to this
Agreement shall not exceed $66,285.00 for Elements 1-3 set forth in Exhibit A, and
shall not exceed $12,000.00 for,the hourly on-call services of Element 4 set forth in
Exhibit A, for a total compensation amount of$78,285.00, plus any applicable state
and local sales taxes. Compensation shall be paid based upon Work actually
performed according to the rate(s) or amounts specified in Exhibit A. The Consultant
agrees that any hourly or flat rate charged by it for its Work shall remain locked at the
negotiated rate(s) unless otherwise agreed to in writing or provided in Exhibit A.
Except as specifically provided herein, the Consultant shall be solely responsible for
payment of any taxes imposed as a result of the performance and payment of this
Agreement.
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B. Method of Payment. On a monthly or no less than quarterly basis during any quarter
in which Work is performed,the Consultant shall submit a voucher or invoice in a form
specified by the City, including a description of what Work has been performed, the
name of the personnel performing such Work, and any hourly labor charge rate for
such personnel. The Consultant shall also submit a final bill upon completion of all
Work. Payment shall be made by the City for Work performed within thirty (30)
calendar days after receipt and approval by the appropriate City representative of the
voucher or invoice. If the Consultant's performance does not meet the requirements
of this Agreement, the Consultant will correct or modify its performance to comply
with the Agreement.The City may withhold payment for work that does not meet the
requirements of this Agreement.
C. Effect of Payment. Payment for any part of the Work shall not constitute a waiver by
the City of any remedies it may have against the Consultant for failure of the
Consultant to perform the Work or for any breach of this Agreement by the
Consultant.
D. Non-Appropriation of Funds. If sufficient funds are not appropriated or allocated for
payment under this Agreement for any future fiscal period, the City shall not be
obligated to make payments for Work or amounts incurred after the end of the
current fiscal period, and this Agreement will terminate upon the completion of all
remaining Work for which funds are allocated. No penalty or expense shall accrue to
the City in the event this provision applies.
5. Termination:
A. The City reserves the right to terminate this Agreement at any time, with or without
cause by giving ten(10)calendar days'notice to the Consultant in writing. In the event
of such termination or suspension,all finished or unfinished documents,data,studies,
worksheets, models and reports, or other material prepared by the Consultant
pursuant to this Agreement shall be submitted to the City, if any are required as part
of the Work.
B. In the event this Agreement is terminated by the City,the Consultant shall be entitled
to payment for all hours worked to the effective date of termination, less all payments
previously made. If the Agreement is terminated by the City after partial performance
of Work for which the agreed compensation is a fixed fee, the City shall pay the
Consultant an equitable share of the fixed fee. This provision shall not prevent the
City from seeking any legal remedies it may have for the violation or nonperformance
of any of the provisions of this Agreement and such charges due to the City shall be
deducted from the final payment due the Consultant. No payment shall be made by
the City for any expenses incurred or work done following the effective date of
termination unless authorized in advance in writing by the City.
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6. Warranties And Right To Use Work Product: Consultant represents and warrants that
Consultant will perform all Work identified in this Agreement in a professional and
workmanlike manner and in accordance with all reasonable and professional standards
and laws. Compliance with professional standards includes, as applicable, performing the
Work in compliance with applicable City standards or guidelines (e.g. design criteria and
Standard Plans for Road, Bridge and Municipal Construction). Professional engineers shall
certify engineering plans, specifications, plats, and reports, as applicable, pursuant to
RCW 18.43.070. Consultant further represents and warrants that all final work product
created for and delivered to the City pursuant to this Agreement shall be the original work
of the Consultant and free from any intellectual property encumbrance which would
restrict the City from using the work product. Consultant grants to the City a non-
exclusive, perpetual right and license to use, reproduce, distribute, and display all final
work product produced pursuant to this Agreement. The City's or other's use of the final
work products other than for the purposes of this Agreement shall be without liability to
the Consultant. The provisions of this section shall survive the expiration or termination
of this Agreement.
7. Record Maintenance: The Consultant shall maintain accounts and records, which
properly reflect all direct and indirect costs expended and Work provided in the
performance of this Agreement and retain such records for as long as may be required by
applicable Washington State records retention laws, but in any event no less than six
years after the termination of this Agreement. The Consultant agrees to provide access
to and copies of any records related to this Agreement as required by the City to audit
expenditures and charges and/or to comply with the Washington State Public Records Act
(Chapter 42.56 RCW). The provisions of this section shall survive the expiration or
termination of this Agreement.
8. Public Records Compliance: To the full extent the City determines necessary to comply
with the Washington State Public Records Act,Consultant shall make a due diligent search
of all records in its possession or control relating to this Agreement and the Work,
including, but not limited to, e-mail, correspondence, notes, saved telephone messages,
recordings, photos, or drawings and provide them to the City for production. In the event
Consultant believes said records need to be protected from disclosure, it may, at
Consultant's own expense, seek judicial protection. Consultant shall indemnify, defend,
and hold harmless the City for all costs, including attorneys' fees, attendant to any claim
or litigation related to a Public Records Act request for which Consultant has responsive
records and for which Consultant has withheld records or information contained therein,
or not provided them to the City in a timely manner. Consultant shall produce for
distribution any and all records responsive to the Public Records Act request in a timely
manner, unless those records are protected by court order. The provisions of this section
shall survive the expiration or termination of this Agreement.
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9. Independent Contractor Relationship:
A. The Consultant is retained by the City only for the purposes and to the extent set forth
in this Agreement.The nature of the relationship between the Consultant and the City
during the period of the Work shall be that of an independent contractor, not
employee.The Consultant, not the City,shall have the power to control and direct the
details, manner or means of Work. Specifically, but not by means of limitation, the
Consultant shall have no obligation to work any particular hours or particular
schedule, unless otherwise indicated in the Scope of Work or where scheduling of
attendance or performance is mutually arranged due to the nature of the Work.
Consultant shall retain the right to designate the means of performing the Work
covered by this agreement, and the Consultant shall be entitled to employ other
workers at such compensation and such other conditions as it may deem proper,
provided, however, that any contract so made by the Consultant is to be paid by it
alone, and that employing such workers, it is acting individually and not as an agent
for the City.
B. 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 Consultant
or any employee of the Consultant.
C. If the Consultant is a sole proprietorship or if this Agreement is with an individual,the
Consultant agrees to notify the City and complete any required form if the Consultant
retired under a State of Washington retirement system and agrees to indemnify any
losses the City may sustain through the Consultant's failure to do so.
10. Hold Harmless: The Consultant agrees to release, indemnify, defend, and hold harmless
the City, elected officials, employees, officers, representatives, and volunteers from any
and all claims, demands, actions, suits, causes of action, arbitrations, mediations,
proceedings, judgments, awards, injuries, damages, liabilities, taxes, losses, fines, fees,
penalties, expenses, attorney's or attorneys' fees, costs, and/or litigation expenses to or
by any and all persons or entities, arising from, resulting from, or related to the negligent
acts, errors or omissions of the Consultant in its performance of this Agreement or a
breach of this Agreement by Consultant, except for that portion of the claims caused by
the City's sole negligence.
Should a court of competent jurisdiction determine that this agreement is subject to RCW
4.24.115, (Validity of agreement to indemnify against liability for negligence relative to
construction,alteration, improvement,etc.,of structure or improvement attached to real
estate...) then, in the event of liability for damages arising out of bodily injury to persons
or damages to property caused by or resulting from the concurrent negligence of the
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Consultant and the City, its officers, officials, employees and volunteers, Consultant's
liability shall be only to the extent of Consultant's negligence.
It is further specifically and expressly understood that the indemnification provided in
this Agreement constitute Consultant's waiver of immunity under the Industrial
Insurance Act, RCW Title 51, solely for the purposes of this indemnification. The Parties
have mutually negotiated and agreed to this waiver. The provisions of this section shall
survive the expiration or termination of this Agreement.
11. Gifts and Conflicts: The City's Code of Ethics and Washington State law prohibit City
employees from soliciting, accepting, or receiving any gift, gratuity or favor from any
person, firm or corporation involved in a contract or transaction. To ensure compliance
with the City's Code of Ethics and state law,the Consultant shall not give a gift of any kind
to City employees or officials. Consultant also confirms that Consultant does not have a
business interest or a close family relationship with any City officer or employee who was,
is, or will be involved in selecting the Consultant, negotiating or administering this
Agreement, or evaluating the Consultant's performance of the Work.
12. City of Renton Business License: The Consultant shall obtain a City of Renton Business
License prior to performing any Work and maintain the business license in good standing
throughout the term of this agreement with the City.
Information regarding acquiring a city business license can be found at:
http://www.rentonwa.gov/cros/One.aspx?portalld=7922741&pageld=9824882
Information regarding State business licensing requirements can be found at:
http://dor.wa.gov/doing-business/register-my-business
13. Insurance: Consultant shall secure and maintain:
A. Commercial general liability insurance in the minimum amounts of $1,000,000 for
each occurrence/$2,000,000 aggregate for the Term of this Agreement.
B. In the event that Work delivered pursuant to this Agreement either directly or
indirectly involve or require Professional Services, Professional Liability, Errors and
Omissions coverage shall be provided with minimum limits of $1,000,000 per
occurrence. "Professional Services", for the purpose of this section, shall mean any
Work provided by a licensed professional or Work that requires a professional
standard of care.
C. Workers' compensation coverage, as required by the Industrial Insurance laws of the
State of Washington, shall also be secured.
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D. Commercial Automobile Liability for owned, leased,hired or non-owned,leased, hired
or non-owned, with minimum limits of $1,000,000 per occurrence combined single
limit, if there will be any use of Consultant's vehicles on the City's Premises by or on
behalf of the City, beyond normal commutes.
E. Consultant shall name the City as an Additional Insured on its commercial general
liability policy on a non-contributory primary basis. The City's insurance policies shall
not be a source for payment of any Consultant liability, nor shall the maintenance of
any insurance required by this Agreement be construed to limit the liability of
Consultant to the coverage provided by such insurance or otherwise limit the City's
recourse to any remedy available at law or in equity.
F. Subject to the City's review and acceptance, a certificate of insurance showing the
proper endorsements, shall be delivered to the City before performing the Work.
G. Consultant shall provide the City with written notice of any policy cancellation,within
two (2) business days of their receipt of such notice.
14. Delays: Consultant is not responsible for delays caused by factors beyond the
Consultant's reasonable control. When such delays beyond the Consultant's reasonable
control occur,the City agrees the Consultant is not responsible for damages, nor shall the
Consultant be deemed to be in default of the Agreement.
15. Successors and Assigns: Neither the City nor the Consultant shall assign, transfer or
encumber any rights, duties or interests accruing from this Agreement without the
written consent of the other.
16. Notices: Any notice required under this Agreement will be in writing, addressed to the
appropriate party at the address which appears below (as modified in writing from time
to time by such party), and given personally, by registered or certified mail, return receipt
requested, by facsimile or by nationally recognized overnight courier service.Time period
for notices shall be deemed to have commenced upon the date of receipt, EXCEPT
facsimile delivery will be deemed to have commenced on the first business day following
transmission. Email and telephone may be used for purposes of administering the
Agreement, but should not be used to give any formal notice required by the Agreement.
CITY OF RENTON CONSULTANT
Harry Barrett Jr. David Benner
1055 South Grady Way 9085 East Mineral Circle, Suite 315
Renton, WA 98057 Centennial, CO 80112
Phone: (425) 430-7477 Phone: (303) 792-5205
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hbarrett@rentonwa.gov dbenner@amcg.aero
Fax: (425) 430-7241 Fax: (303) 792-2751
17. Discrimination Prohibited: Except to the extent permitted by a bona fide occupational
qualification, the Consultant agrees as follows:
A. Consultant, and Consultant's agents, employees, representatives, and volunteers
with regard to the Work performed or to be performed under this Agreement, shall
not discriminate on the basis of race, color, sex, religion, nationality, creed, marital
status, sexual orientation or preference, age (except minimum age and retirement
provisions), honorably discharged veteran or military status, or the presence of any
sensory, mental or physical handicap, unless based upon a bona fide occupational
qualification in relationship to hiring and employment, in employment or application
for employment, the administration of the delivery of Work or any other benefits
under this Agreement, or procurement of materials or supplies.
B. The Consultant will take affirmative action to insure that applicants are employed and
that employees are treated during employment without regard to their race, creed,
color, national origin, sex, age, sexual orientation, physical, sensory or mental
handicaps, or marital status. Such action shall include, but not be limited to the
following employment, upgrading, demotion or transfer, recruitment or recruitment
advertising, layoff or termination, rates of pay or other forms of compensation and
selection for training.
C. If the Consultant fails to comply with any of this Agreement's non-discrimination
provisions, the City shall have the right, at its option, to cancel the Agreement in
whole or in part.
D. The Consultant is responsible to be aware of and in compliance with all federal, state
and local laws and regulations that may affect the satisfactory completion of the
project, which includes but is not limited to fair labor laws, worker's compensation,
and Title VI of the Federal Civil Rights Act of 1964,and will comply with City of Renton
Council Resolution Number 4085.
18. Miscellaneous:The parties hereby acknowledge:
A. The City is not responsible to train or provide training for Consultant.
B. Consultant will not be reimbursed for job related expenses except to the extent
specifically agreed within the attached exhibits.
C. Consultant shall furnish all tools and/or materials necessary to perform the Work
except to the extent specifically agreed within the attached exhibits.
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D. In the event special training, licensing, or certification is required for Consultant to
provide Work he/she will acquire or maintain such at his/her own expense and, if
Consultant employs,sub-contracts,or otherwise assigns the responsibility to perform
the Work, said employee/sub-contractor/assignee will acquire and or maintain such
training, licensing, or certification.
E. This is a non-exclusive agreement and Consultant is free to provide his/her Work to
other entities, so long as there is no interruption or interference with the provision of
Work called for in this Agreement.
F. Consultant is responsible for his/her own insurance, including, but not limited to
health insurance.
G. Consultant is responsible for his/her own Worker's Compensation coverage as well as
that for any persons employed by the Consultant.
19. Other Provisions:
A. Approval Authority. Each individual executing this Agreement on behalf of the City
and Consultant represents and warrants that such individuals are duly authorized to
execute and deliver this Agreement on behalf of the City or Consultant.
B. General Administration and Management.The City's project manager is Harry Barrett
Jr.. In providing Work, Consultant shall coordinate with the City's contract manager
or his/her designee.
C. Amendment and Modification. This Agreement may be amended only by an
instrument in writing, duly executed by both Parties.
D. Conflicts. In the event of any inconsistencies between Consultant proposals and this
Agreement, the terms of this Agreement shall prevail. Any exhibits/attachments to
this Agreement are incorporated by reference only to the extent of the purpose for
which they are referenced within this Agreement. To the extent a Consultant
prepared exhibit conflicts with the terms in the body of this Agreement or contains
terms that are extraneous to the purpose for which it is referenced, the terms in the
body of this Agreement shall prevail and the extraneous terms shall not be
incorporated herein.
E. Governing Law. This Agreement shall be made in and shall be governed by and
interpreted in accordance with the laws of the State of Washington and the City of
Renton. Consultant and all of the Consultant's employees shall perform the Work in
accordance with all applicable federal, state, county and city laws, codes and
ordinances.
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F. Joint Drafting Effort.This Agreement shall be considered for all purposes as prepared
by the joint efforts of the Parties and shall not be construed against one party or the
other as a result of the preparation, substitution, submission or other event of
negotiation, drafting or execution.
G. Jurisdiction and Venue.Any lawsuit or legal action brought by any party to enforce or
interpret this Agreement or any of its terms or covenants shall be brought in the King
County Superior Court for the State of Washington at the Maleng Regional Justice
Center in Kent, King County,Washington,or its replacement or successor. Consultant
hereby expressly consents to the personal and exclusive jurisdiction and venue of
such court even if Consultant is a foreign corporation not registered with the State of
Washington.
H. Severability. A court of competent jurisdiction's determination that any provision or
part of this Agreement is illegal or unenforceable shall not cancel or invalidate the
remainder of this Agreement, which shall remain in full force and effect.
I. Sole and Entire Agreement. This Agreement contains the entire agreement of the
Parties and any representations or understandings, whether oral or written, not
incorporated are excluded.
J. Time is of the Essence. Time is of the essence of this Agreement and each and all of
its provisions in which performance is a factor. Adherence to completion dates set
forth in the description of the Work is essential to the Consultant's performance of
this Agreement.
K. Third-Party Beneficiaries. Nothing in this Agreement is intended to, nor shall be
construed to give any rights or benefits in the Agreement to anyone other than the
Parties, and all duties and responsibilities undertaken pursuant to this Agreement will
be for the sole and exclusive benefit of the Parties and no one else.
L. Binding Effect. The Parties each bind themselves, their partners, successors, assigns,
and legal representatives to the other party to this Agreement, and to the partners,
successors, assigns, and legal representatives of such other party with respect to all
covenants of the Agreement.
M. Waivers.All waivers shall be in writing and signed by the waiving party. Either party's
failure to enforce any provision of this Agreement shall not be a waiver and shall not
prevent either the City or Consultant from enforcing that provision or any other
provision of this Agreement in the future. Waiver of breach of any provision of this
Agreement shall not be deemed to be a waiver of any prior or subsequent breach
unless it is expressly waived in writing.
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N. Counterparts. The Parties may execute this Agreement in any number of
counterparts, each of which shall constitute an original, and all of which will together
constitute this one Agreement.
IN WITNESS WHEREOF, the Parties have voluntarily entered into this Agreement as of the date
last signed by the Parties below.
CITY OF RENTON CONSULTANT
By: By: .r-J C
ArmIllrgLavone David Benner
Mayor Managing Consultant
O2, :7-0 01/10/2020
Date Date
Attest
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Jaso A. Seth
City erk
Approved as to Legal Form
By:
Shane Moloney
City Attorney
Contract Template Updated 03/12/2019
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PAGE 10 OF 10
AMCGExhibit A
PROPOSAL
Prospect: City of Renton
Renton Municipal Airport
616 W. Perimeter Road
Renton, Washington 98057
Contact: Mr. Harry Barrett Jr., Airport Manager
Location: Renton Municipal Airport
Services: Rent Study, Fee Study, Cost Allocation Study
Scope: Aviation Management Consulting Group (AMCG) with Mead and Hunt (M&H),
collectively referred to as the AMCG team, will provide the scope of services for
the City of Renton (City) outlined in the following elements:
Element 1: The AMCG team proposes to conduct an Airport Rent Study to
determine an opinion of market rent for certain improvements utilized for
aeronautical purposes at Renton Municipal Airport (Airport). The proposed work
plan is provided in Attachment A.
Element 2 The AMCG team proposes to conduct an Airport Fee Study to establish
airport fees to help recover the operating expenses and non-operating sources of
funds (e.g., non-AlP or other grant funds)that have been and are anticipated to be
incurred by the City relating to the planning, development, operation, and
management of the Airport. The Airport Fee Study will not encompass non-
aeronautical fees. Additionally, it is important to note that AMCG believes that fees
should be cost-recovery based—not market based (like rents). The proposed work
plan is provided in Attachment A.
Element 3: The AMCG team proposes to conduct a Revenue and Cost Allocation
Study for the Airport which will consist of a review, allocation, and analysis of three
historical years of the Airports' operating revenues, expenses, and non-operating
sources and uses of funds by the functional areas and revenues streams (i.e.,
administration, airside, landside, aviation real estate, and non-aviation real estate).
The proposed work plan is provided in Attachment A.
Element 4: If desired by (and at the option of) the City, AMCG will provide
consulting/advisory services for any matter pertaining to general aviation —
airports, aviation businesses (FBOs and/or SASOs), and non-commercial entities.
These services may, but are not limited to, federal grant applications, future
operator contract negotiations, trend analysis, cash flow analysis, debt service
calculations, development of future debt strategies, or capital program
development.
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City of Renton, Renton Municipal Airport(12/03/2019) 1
Proposal from Aviation Management Consulting Group
r
Exhibit A
A
sMCG PROPOSAL
Fees: Based on the proposed scope of services, proposed work plans, and AMCG's
experience with similar projects,the services can be provided for the following fees
(by element).
Elements Budget
Element 1:Airport Rent Study $25,150
Element 2:Airport Fee Study $19,250
Element 3: Revenue and Cost Allocation Study $25,375
Element 4: Consulting Advisory Services Hourly
Total $69,775
AMCG VALUES THE OPPORTUNITY TO WORK WITH THE CITY AND WE TRULY
APPRECIATE YOUR CONFIDENCE IN OUR SERVICES. BASED ON THE INHERENT
SYNERGIES OF THE ELEMENTS,AMCG WILL APPLY A DISCOUNT OF 5.0% FOR A TOTAL
DISCOUNTED FEE OF$66,285.
Element 4 would be provided on an hourly basis in accordance with AMCG's
Regular Hourly Fee Schedule, as follows:
AMCG Regular Hourly Fee Schedule
Position Hourly Billing Rate
Managing Principal $290
Managing Consultant $235
Consultant $210
Senior Project Analyst $155
Project Analyst $130
Staff $80
Expenses: An expense allocation of$2,250 is included in the Fees identified herein to cover
the direct (project-related) expenses for the proposed scope of services and work
plan. The expense allocation includes one site visit that will consist of two people
fora maximum of three days on-site.Any direct(project-related)expenses incurred
by AMCG in excess of the expense allocation would be reimbursed to AMCG (at
cost without mark-up).
Direct (project-related) expenses include air and ground transportation, lodging,
subsistence, and costs for outside services(e.g., overnight or courier service, copying,
printing, and document production/duplication, etc.).
Schedule: Notwithstanding circumstances beyond AMCG's control and based on AMCG's
experience with similar projects, the proposed scope of services and work plan can
be completed within 12 to 16 weeks from the site visit date.
Other: This proposal is valid through January 1, 2020 and is subject to change thereafter
including, but not limited to, withdrawal in whole or in part. Fees and expenses
(and completion of the project in accordance with the schedule) are dependent on
the: (1)quality,composition, and timeliness of the information provided to/obtained
by the AMCG team and (2) the time required by the City, it's representatives, or
others to review draft work products and/or provide comments.
A signed Project Authorization Agreement will be required to commence work on
the project.
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City of Renton, Renton Municipal Airport(12/03/2019) 2
Proposal from Aviation Management Consulting Group
i Exhibit A
/ MCG ATTACHMENT A—WORK PLAN
Element 1:Air•ort Rent Stud
AMCG proposes to conduct an Airport Rent Study to determine an estimated opinion of market
rent for certain Airport improvements (Subject Properties) identified on the followi ng table:
Subject Properties Overview
Component Size(SF)
Number Size
T-Hangar 29 N/A
Small T-Hangar 11 880
Tiedown (Monthly) 11 N/A
Maintenance Hangar Facility 1 20,020
Executive Hangar 1 5,757
Apron 1 73,849
Office 1 3,047
Vehicle Parking 1 N/A
To derive an estimated opinion of market rent for aeronautical airport properties, AMCG will
analyze rental rates on a comparative basis for similar improvements at comparable and
competitive airports (and at national and regional airports) to derive a supported market based
rental rate for each component of the Subject Properties. If fees are being charged in lieu of or in
addition to rent, AMCG will take that into account.
MARKETPLACE CONSIDERATIONS
General conditions, trends, and demographics in the market will be considered by AMCG (as
appropriate).
OTHER CONSIDERATIONS
AMCG will assume that the highest and best use of the Subject Properties is aviation related
(aeronautical use), that the Subject Properties will continue to be part of an operating airport, and
that access to the infrastructure and amenities of the airport will be available.
To accomplish the scope of work for an Airport Rent Study, AMCG will complete the following
work plan (tasking):
TASK 1: FIRST WORKING SESSION—PROJECT INITIALIZATION MEETING
Conduct a working session (by telephone or web-based meeting software) with Airport
management to initialize project, discuss information request (Task 2); identify subject properties;
and address any questions related to the rent study process. This working session is typically
budgeted for 2 hours.
TASK 2: INFORMATION REQUEST
Relevant and pertinent information, data, and documentation on the community, market, Airport,
aviation businesses, and non-commercial aeronautical entities located at the Airport will be
compiled by Airport management. AMCG will provide a written information request to Airport
management to help facilitate this process.
,GCB
City of Renton, Renton Municipal Airport(12/03/2019) 3
Proposal from Aviation Management Consulting Group
Exhibit A
i'MCG ATTACHMENT A—WORK PLAN
TASK 3: SITE VISIT
AMCG will conduct a site visit to include: (1) a project initialization meeting with representatives
of Airport management and the City(as desired), (2) a tour of the Airport and Subject Properties,
(3) photographs of the Subject Properties, and (4) meetings with select stakeholders (i.e.,
representatives of the aviation businesses and/or non-commercial entities) — as determined by
Airport management working in collaboration with the team and based on available budget and
schedule.
While on-site, AMCG will review the location of and access to the Subject Properties and work
with representatives of Airport management and the City to verify/confirm(as necessary)the type,
use, and attributes of each property. AMCG will review and analyze additional information, data,
and documentation provided/obtained during the site visit and conduct additional research.
TASK 4: COMPARABLE AND COMPETITIVE AIRPORT IDENTIFICATION
Develop a preliminary list of comparable and competitive airports (based on the Airport's existing
infrastructure and activity indicators) for review by Airport management. AMCG will identify
regional airports.
The selection of comparable airports and the assimilation and analysis of data for similar
properties (including, but not limited to, type, use, and attributes) at comparable airports is
essential to the rent study process.
AMCG MAINTAINS AN EXTENSIVE DATABASE OF MORE THAN 550 AIRPORTS LOCATED/N THE UNITED
STA TES WITH MORE THAN 3,750 DATA POINTS SPECIFICALLY FOR THIS PURPOSE.
A number of variables will be considered when identifying and selecting comparable airports
including, but not limited to, the following:
➢ Infrastructure (number, configuration, and capacity of runways and taxiways)
➢ Approaches (precision versus non-precision)
➢ Presence or absence of a control tower
➢ Number and type of aviation businesses (including the number of fuel providers)
➢ Amount of available land for aviation development(and related land use considerations)
➢ Type of market
➢ Number and type of airports in the market
➢ Activity levels (based aircraft, aircraft operations, and fuel volumes)
TASK 5: COMPARATIVE ANALYSIS
Collect, review, and analyze information, data, and documentation from comparable, competitive,
regional, and national airports using AMCG's proprietary database, reference library, and/or
directly from the airports identified in Task 3.
AMCG will derive the market rental rate for the Subject Properties(by component and use).
CONSIDERATION OF REGIONAL AND NATIONAL AIRPORT DATA
As a supplement to the comparable airport data, the rental rates being charged at airports within
the FAA's Northwest Mountain Region as well as those being charged at airports located
throughout the United States — as maintained within AMCG's proprietary database — will be
considered by AMCG. DC$
City of Renton, Renton Municipal Airport(12/03/2019) 4
Proposal from Aviation Management Consulting Group
Exhibit A
• MCG ATTACHMENT A—WORK PLAN
IDENTIFICATION AND SELECTION OF SIMILAR PROPERTIES(CRITERIA)
AMCG will consider the following factors when identifying and selecting similar improvements at
comparable airports, including, but not limited to, the following:
➢ Use(commercial versus non-commercial)
➢ Size(usable versus unusable)
➢ Location and access (landside and airside)to/from the Subject Properties, infrastructure,
and utilities
➢ Lease terms and conditions
➢ Type, quality, condition, and functional utility or limitations of the Subject Properties (this
includes, but is not necessarily limited to, any restrictions on the development of the
land, the availability of utilities, and the ability of the land to support the aircraft that
normally frequent the subject airport)
THE RENTAL RATES BEING CHARGED FOR SIMILAR PROPERTIES AT COMPETITIVE AIRPORTS WILL BE
CONSIDERED AS WELL(AS APPROPRIATE).
TASK 6: FIRST DRAFT
AMCG will prepare the first draft of the summary report (based on the comparative analysis)
conveying the market rental rate for the Subject Properties (by component and use) and provide
to Airport management for review.
DETERMINING MARKET RENTS
Based on an analysis of the data compiled, AMCG will derive a market based and supported
rental rate for each component of the Subject Properties.
A written summary report will be provided as the final work product or deliverable. In addition, to
conveying AMCG's opinion of the market rental rate for the Subject Properties, the summary
report will describe the data, reasoning, and analysis (and identify the approach utilized) to
develop AMCG's opinion.
Unless otherwise noted, market rental rates will be conveyed on a "per square foot per year" or
"per unit per month" and a "triple net" basis. As part of rent study process, AMCG will evaluate
the market rental rates for reasonableness to ensure compliance with federal mandates.
TASK 7: SECOND WORKING SESSION
AMCG will conduct a review session (by telephone or web-based meeting software)with Airport
management to review the draft summary report and provide comments, identify questions, and
make recommendations. This working session is budgeted for 1 hour.
TASK 8: FINAL STUDY
AMCG will finalize the summary report and provide the final report.
DCE
City of Renton, Renton Municipal Airport(12/03/2019) 5
Proposal from Aviation Management Consulting Group
Exhibit A
AMCG ATTACHMENT A—WORK PLAN
Element 2:Airport Fee Study
AMCG will conduct an Airport Fee Study to establish airport fees to help recover the operating
expenses and non-operating sources of funds (e.g., non-AIP or other grant funds)that have been
and are anticipated to be incurred by the City relating to the planning, development, operation,
and management of the Airport. Note: The Study will not encompass non-aeronautical fees.
Additionally, it is important to note that AMCG believes that fees should be cost-recovery based
— not market based (like rents).
Under Phase I of the Study, AMCG will (1) review the current fee program for the Airport. More
specifically, AMCG will review the types of fees currently being charged at the Airport, the
methodologies currently being utilized to establish the fees, and the basis (or the unit measure)
currently being deployed for charging fees and (2) identify current industry practices for
establishing airport fees including summarizing the types of fees generally being charged, the
methodologies generally being utilized, and the measures generally being deployed in the
industry. The Phase I summary report will provide AMCG's findings and recommendations
regarding the types of fees that could be charged, the methodology for establishing such fees,
and the basis (or the unit measure)for charging such fees.
Under Phase II of the Study, once the types of fees,the methodologies, and the basis for charging
fees have been selected by Airport management, AMCG will conduct a cost recovery financial
analysis of the Airport's operating expenses and non-operating sources of funds and calculate
fees (dollar amounts for each fee) for the Airport.
To accomplish the proposed scope of services for an Airport Fee Study, AMCG will complete
the following tasks:
TASK 1: FIRST WORKING SESSION—PROJECT INITIALIZATION MEETING
Conduct a working session (by telephone or web-based meeting software) with Airport
management to initialize project, discuss information request (Task 2); identify all existing,
desired, and non-desired Airport fees;and address any questions related to the fee study process.
This working session is typically budgeted for 2 hours.
TASK 2: INFORMATION REQUEST
Relevant and pertinent information, data, and documentation on the community, market, Airport,
aviation businesses, and non-commercial aeronautical entities located at the Airport will be
compiled by Airport management. AMCG will provide a written information request to Airport
management to help facilitate this process.
Review current fee program for the Airport, including the types of fees currently being charged at
the Airport, the methodologies currently being utilized to establish the fees, and the basis (or the
unit measure) currently being deployed for charging fees.
Identify current industry practices for establishing fees including summarizing the types of fees
generally being charged, the methodologies generally being utilized, and the measures generally
being deployed in the i ndustry.
DCE
City of Renton, Renton Municipal Airport(12/03/2019) 6
Proposal from Aviation Management Consulting Group
Exhibit A
IMCG ATTACHMENT A—WORK PLAN
TASK 3: COMPARABLE AND COMPETITIVE AIRPORTS IDENTIFICATION
Develop a preliminary list of comparable and competitive airports (based on the Airport's existing
infrastructure and activity indicators) for review by Airport management. AMCG will identify
regional airports. A number of variables will be considered when identifying and selecting
comparable airports including, but not limited to, the following:
➢ Infrastructure (number, configuration, and capacity of runways and taxiways)
➢ Approaches (precision versus non-precision)
➢ Presence or absence of a control tower
➢ Number and type of aviation businesses (including the number of fuel providers)
➢ Amount of available land for aviation development(and related land use considerations)
➢ Type of market
➢ Number and type of airports in the market
➢ Activity levels(based aircraft, aircraft operations, and fuel volumes)
TASK 4:AIRPORT FEE COMPARATIVE ANALYSIS DEVELOPMENT AND REVIEW
Develop and provide for Airport management review an airport fee comparative analysis that will
include (1) the identification of current industry practices for establishing aeronautical fees
including summarizing the types of fees typically being charged in the industry,the methodologies
typically being utilized in the industry to establish fees, and the basis typically being deployed in
the industry for charging fees and (2)the comparison of the current fee program at the Airport to
the current fee programs at comparable and competitive airports.
Obtain and validate relevant information from comparable and competitive airports using AMCG's
proprietary database, reference library, and/or directly from the airports identified.
Develop and provide for Airport management review the findings of the airport fee comparative
analysis and best practices recommendations regarding the types of fees that could be charged,
the methodology for establishing such fees, and the basis(or the unit measure)for charging such
fees.
TASK 5: SECOND WORKING SESSION—COMPARATIVE ANALYSIS REVIEW
Conduct a second working session (by telephone or web-based meeting software) with Airport
management to review the airport fee comparative analysis and provide comments, identify
questions, and make recommendations. This working session is budgeted for 1 hour.
TASK 6: COST RECOVERY ANALYSIS
Conduct a cost recovery analysis based on the types of fees, the methodologies, and the basis
selected by Airport management.
TASK 7: FIRST DRAFT—SCHEDULE OF FEES
Predicated on the findings of the cost recovery analysis, calculate proposed fees (dollar amounts
for each fee) for the Airport and develop and provide for Airport management review the cost
recovery analysis spreadsheets and a first draft of the Schedule of Fees for review by Airport
management.
DC'
City of Renton, Renton Municipal Airport(12/03/2019) 7
Proposal from Aviation Management Consulting Group
Exhibit A
IthICGATTACHMENT A—WORK PLAN
TASK 8:THIRD WORKING SESSION—SCHEDULE OF FEES REVIEW
Conduct a third working session (by telephone or web-based meeting software) with Airport
management to review the cost recovery analysis spreadsheets, the fee calculations, and the
draft of the Schedule of Vees and provide comments, identify questions, and make
recommendations. This working session is budgeted for 1 hour.
TASK 9: SECOND DRAFT—SCHEDULE OF FEES
Revise first draft of the Schedule of Fees based on comments provided, questions identified, and
recommendations made by Airport management during fourth working session and provide for
Airport management review second draft of the cost recovery analysis spreadsheets, fee
calculations, and the Schedule of F ees.
TASK 10: FOURTH WORKING SESSION—SCHEDULE OF FEES
Conduct a fourth working session (by telephone or web-based meeting software) with Airport
management to review second draft of the cost recovery analysis,fee calculations, and schedule
of fees and provide comments, identify questions, and make recommendations. This working
session is budgeted for 1 hour.
TASK 11: FINAL STUDY—SCHEDULE OF FEES
Revise second draft of the Schedule of Fees based on the comments provided, questions
identified, and recommendations made by Airport management during the fifth working session
and develop and provide Airport management final Study(including Schedule of Fees).
Element 3: Revenue and Cost Allocation Study
The AMCG team proposes to conduct a Revenue and Cost Allocation Study for the Airport which
will consist of a review, allocation, and analysis of three historical years of the Airports' operating
revenues, expenses, and non-operating sources and uses of funds by the functional areas and
revenues streams (i.e., administration, airside, landside, aviation real estate, and non-aviation
real estate).
To accomplish the proposed scope of services for the Revenue and Cost Allocation Study, the
AMCG team would complete the following tasks:
TASK 1: FIRST WORKING SESSION—PROJECT INITIALIZATION MEETING
Conduct a working session (by telephone or web-based meeting software) with Airport
management and the City to initialize project, discuss information request (Task 2), identify the
Airports' functional areas and revenue streams to be utilized in the allocation process, and
address any questions regarding the allocation process. This working session is budgeted for 2
hours.
,SCE
City of Renton, Renton Municipal Airport(12/03/2019) 8
Proposal from Aviation Management Consulting Group
Exhibit A
1' MCG ATTACHMENT A—WORK PLAN
TASK 2: INFORMATION COLLECTION, REVIEW,AND ANALYSIS
Relevant and pertinent information, data, and documentation on the operational statistics (i.e.,
aircraft operations, based aircraft, fuel volumes square footages, employees, etc.) and financial
statements for the last three fiscal years (i.e., balance sheets, income statements, depreciation
schedules, etc.)will be compiled by Airport management. AMCG will provide a written information
request to Airport management to help facilitate this process.
TASK 3:ALLOCATE AIRPORT FINANCIALS
Allocate all Airport operating revenues and expenses and non-operating sources and uses of
funds by the agreed upon Airport functional areas and/or revenue streams for the Airport.
TASK 4: DRAFT OF REVENUE AND COST ALLOCATION(FIRST)
AMCG will prepare the first draft of the Revenue and Cost Allocation Study spreadsheets and
provide to Airport management and the City for review.
TASK 5: SECOND WORKING SESSION—DRAFT REVENUE AND COST ALLOCATION
AMCG will conduct a review session (by telephone or web-based meeting software) with Airport
management and the City to review first draft and provide comments, identify questions, and
make recommendations. This working session is budgeted for 2 hours.
TASK 6: DRAFT OF REVENUE AND COST ALLOCATION(SECOND)
AMCG will revise the first draft of the Revenue and Cost Allocation Study (based on the input
provided by Airport management and the City during the second working session) and provide to
Airport management and the City for review.
TASK 7: THIRD WORKING SESSION—DRAFT REVENUE AND COST ALLOCATION
AMCG conduct the final working session (by telephone or web-based meeting software) with
Airport management and the City to review second draft and provide comments, identify
questions, and make recommendations. This working session is budgeted for 2 hours.
TASK 8: FINAL STUDY
AMCG will revise the second draft(based on the input provided by Airport management and the
City during the third working session) and provide the final Study to Airport management. In
addition, the AMCG team will conduct an analysis to identify the impacts of implementing the
recommended aeronautical rental rates and aeronautical fee as outlined in Element 1 and
Element 2.
DCE
City of Renton, Renton Municipal Airport(12/03/2019) 9
Proposal from Aviation Management Consulting Group
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