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HomeMy WebLinkAboutContractAGREEMENT FOR CONSULTANT SERVICES THIS AGREEMENT, dated October 13, 2021, 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 iseffective as of the last date signed by both parties. 1. Scope of Work: Consultant agrees to provide Appraisal 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 inExhibit A 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 January 31, 2022. 4. Compensation: A. Amount. Total compensation to Consultant for Work provided pursuant to this Agreement shall not exceed $28,250.00 as set forth in Exhibit A, 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. B. Method of Payment. On a monthly or no less than quarterly basis during any quarter in which Work isperformed, 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 CAG-21-251 PAGE 2 OF 10 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 Cityafter 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. 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 PAGE 3 OF 10 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, adapt, modify, and display all final work product produced pursuant to this Agreement. The City’s or other’s adaptation, modification or 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. 9. Independent Contractor Relationship: PAGE 4 OF 10 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 Consultant and the City, its officers, officials, employees and volunteers, Consultant’s liability shall be only to the extent of Consultant’s negligence. PAGE 5 OF 10 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/cms/One.aspx?portalId=7922741&pageId=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. 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 PAGE 6 OF 10 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 controloccur, 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 Manuel Cruz 616 W Perimeter Rd Renton, WA 98057 Phone: (425) 430-7471 mcruz@rentonwa.gov CONSULTANT David Benner 9085 East Mineral Circle, Suite 315 Centennial, CO 80112 Phone: (303) 792-5205 dbenner@amcg.aero Fax: (303) 792-2751 PAGE 7 OF 10 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. 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 PAGE 8 OF 10 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 projectmanager isManuel Cruz. 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. 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 PAGE 9 OF 10 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. PAGE 10 OF 10 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 By:_____________________________ CONSULTANT By:____________________________ Martin Pastucha Public Works Administrator David Benner Managing Consultant _____________________________ Date _____________________________ Date Approved as to Legal Form By: __________________________ Alex Tuttle Senior Assistant City Attorney Contract Template Updated 03/12/2019 10/14/2021 Approved by Alex Tuttle via 8/18/2021 email PROPOSAL City of Renton, Renton Municipal Airport (08/24/2021) 1 Proposal from Aviation Management Consulting Group Prospect: City of Renton Renton Municipal Airport 616 W. Perimeter Road Renton, Washington 98057 Contact: Mr. David Decoteau, Airport Director Location:Renton Municipal Airport Services:Appraisal Scope:Element 1: Aviation Management Consulting Group (AMCG) and Decker Associates (the AMCG team) propose to conduct an independent appraisal to determine an estimated opinion of market rent for certain Airport improvements leased from the City of Renton (City) by The Boeing Company (Boeing). The proposed work plan is provided in Attachment A. Element 2: If desired by (and at the option of) the City, AMCG can provide consulting/advisory services for any matter pertaining to general aviation – airports, aviation businesses (FBOs and/or SASOs), and non-commercial entities. Fees:Based on the proposed scope of services, attached work plan, and AMCG’s experience with similar projects, the Appraisal can be provided for a fixed fee of $29,750. AMCG VALUES THE OPPORTUNITY TO CONTINUE WORKING WITH CITY OF RENTON AND WE TRULY APPRECIATE YOUR CONFIDENCE IN OUR SERVICES. AS SUCH, AMCG WILL APPLY AN EXISTING CLIENT DISCOUNT OF 5.0%FOR A TOTAL DISCOUNTED FEE OF $28,250. Element 2 would be provided on an hourly basis in accordance with AMCG’s Regular Hourly Fee Schedule, as follows: AMCG 2021 Regular Hourly Fee Schedule Position Hourly Billing Rate Managing Principal $310 Managing Consultant $250 Senior Aviation Consultant $225 Aviation Consultant $210 Managing Analyst $170 Senior Aviation Analyst $155 Aviation Analyst $140 Staff $85 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 for Element 1. The expense allocation includes one site visit that will consist of two people for a maximum of two 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). 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 6 weeks to 8 weeks from the site visit date. PROPOSAL City of Renton, Renton Municipal Airport (08/24/2021) 2 Proposal from Aviation Management Consulting Group Teaming Partner: Robert Decker, MAI (Principal of Decker Associates and long- time AMCG teaming partner) has approximately 40 years of commercial appraisal and consulting experience including a wide variety of aviation assignments encompassing the valuation of airport land and improvements. He has completed many rent studies involving airport properties over the last 25 years as well. Other:This proposal is valid through December 31, 2021, 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, its 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. ATTACHMENT A – WORK PLAN City of Renton, Renton Municipal Airport (08/24/2021) 3 Proposal from Aviation Management Consulting Group Work Plan The AMCG team proposes to conduct an independent appraisal to determine an estimated opinion of market rent for certain Airport improvements (Subject Properties) leased from the City by Boeing as identified in the following table: To accomplish the proposed scope of services for an Appraisal, 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 Client to (1) discuss the Subject Properties, (2) discuss information to be collected, reviewed, and analyzed during Task 2; (3) discuss site visit associated with Task 3; (4) discuss airport profile to be developed in Task 4; (5) and address any questions related to the appraisal process. This working session is budgeted for 1 hour. TASK 2: INFORMATION COLLECTION, REVIEW,AND ANALYSIS Collect, review, and analyze relevant information, data, and documentation on the community, market, Airport, aviation businesses, and non-commercial aeronautical entities located at the Airport. An information request will be provided to Client to help facilitate the collection of information. Based on information received from Client, AMCG will develop a Subject Properties Identification Map for Client approval. TASK 3: SITE VISIT Conduct a site visit to include: (1) a project initialization meeting with Airport management, (2) a tour of the Subject Properties, (3) photographs of the Subject Properties, and (4) meetings with select stakeholders – budget and schedule permitting. While on-site, the AMCG team will review the location of (and access to) the Subject Properties and work with representatives of the Client to verify/confirm (as necessary) the type, use, and attributes of the Subject Properties. Additionally, the AMCG team will ensure the property measurements provided to the team are accurate. The AMCG team will review and analyze additional information, data, and documentation provided/obtained and conduct additional research. Identification Component Size Land Position A-1 and 5-08/5-09 Land 124,489 Building 5-08 Office/Manufacturing Space 27,297 Building 5-09 Office/Manufacturing Space 11,200 Land Positions A-2, A-3, and 5-50 Land 132,896 Building 5-50 Community Hangar 38,394 Land A-4 thru A-9 and Compass Rose Land and Apron 467,809 North Bridge Access Apron 16,778 Apron B Apron 174,073 Land 5-45 Land 57,130 Building 5-45 Office/Manufacturing Space 3,256 Utility Installations to Apron A to B Apron 22,148 Land 760 Land 56,923 Building 756 Office/Manufacturing Space 325 Building 760 Office/Manufacturing Space 1,174 Land 770 Land 86,848 Land 820 Land 73,849 Subject Properties Overview ATTACHMENT A – WORK PLAN City of Renton, Renton Municipal Airport (08/24/2021) 4 Proposal from Aviation Management Consulting Group TASK 4: AIRPORT PROFILE Develop a profile of the Airport based on discussion with Client during Task 1 and the information obtained during Task 2. TASK 5: COMPARABLE AND COMPETITIVE AIRPORT IDENTIFICATION Develop a preliminary list of comparable and competitive airports based on the Airport profile developed in Task 4 for review by Client. 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) Aircraft manufacturing and final assembly activities General conditions, trends, and demographics in the market will be considered (as appropriate) 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 appraising on-airport properties (being used for aeronautical purposes). TASK 6: SECOND WORKING SESSION – COMPARABLE AND COMPETITIVE AIRPORTS REVIEW Conduct a second working session (by telephone or web-based meeting software) with Client to review and discuss preliminary list of airports identified in Task 5. This working session is budgeted for 1 hour. TASK 7: COMPARATIVE INFORMATION COLLECTION, REVIEW,AND ANALYSIS Collect, review, and analyze information, data, and documents from comparable, aircraft final assembly plant, competitive, regional, and national airports using AMCG’s proprietary database, reference library, and/or directly from the airports identified in Task 5. 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. IDENTIFICATION AND SELECTION OF SIMILAR PROPERTIES The following factors will be considered when identifying and selecting similar land and improvements at comparable and competitive (as appropriate) 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 ATTACHMENT A – WORK PLAN City of Renton, Renton Municipal Airport (08/24/2021) 5 Proposal from Aviation Management Consulting Group 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 Airport) TASK 8: MARKET VALUE AND/OR MARKET RENT CONCLUSIONS Market rent conclusions will be derived for the Subject Properties based on the appropriate approaches (cost, sales comparison, and income) discussed herein. The AMCG team will consider such factors as location (access and exposure), zoning (and other limitations and/or restrictions), size and configuration, condition, utilities, etc. It is important to note the AMCG team will utilize the established Commercial Improved Land rental rate ($1.10 psf/yr) as a basis of analysis. Each of the three fundamental appraisal approaches to value (cost, sales comparison, and income) will be considered by the AMCG team and the approach (or approaches) deemed most appropriate for determining an estimated opinion of market value for the Subject Properties will be utilized. If an approach is not used, the AMCG team will provide an explanation. Central to each approach is the principle of substitution as an astute real estate investor will pay no more than the value of an equally desirable alternative property or investment. A brief discussion of each approach follows. COST APPROACH The cost approach considers the current cost of replacing the improvements on the Subject Properties less depreciation plus the market value of the land assumed vacant. Depreciation affecting the improvements can occur from three sources: physical deterioration, functional obsolescence, and economic obsolescence. SALES APPROACH The sales comparison approach involves direct comparisons of similar properties to the Subject Properties which have sold in the same or comparable markets. The data from the sales comparables are then analyzed and adjustments are made for differences that are considered significant. The adjusted sales comparables are then weighted to provide an indication of value for the Subject Properties. INCOME APPROACH The income approach, which is based on an estimate of the Subject Properties net income potential, is commonly used to derive the value or rent of on-airport properties (being used for aeronautical purposes). Based on an analysis of the data compiled in Task 7, a market rental rate for each component of the Subject Properties (as outlined in the Subject Properties Table) will be derived. The market rental rate will be used to estimate the Subject Properties net income potential which, in turn, will be capitalized (using the direct capitalization approach or discounted cash flow) at an overall rate of return to derive the market value of the Subject Properties. To achieve this objective, the AMCG team will analyze rental rates (on a comparative basis) for similar components at comparable airports (and rental rates at national and regional airports) to derive an appropriate market based and supported rental rate for the subject property. If fees are being charged in lieu of “rent”, the AMCG team will take that into account – as well. ATTACHMENT A – WORK PLAN City of Renton, Renton Municipal Airport (08/24/2021) 6 Proposal from Aviation Management Consulting Group HIGHEST AND BEST USE In determining an estimated opinion of market value and/or market rent for the Subject Properties, the AMCG team will utilize the premise of “highest and best use,” which is defined as: "The reasonable probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value."The highest and best use of land, if vacant and available for use, may be different from the highest and best use of the improved property. In estimating the highest and best use of the Subject Properties’ land, as if vacant and improved, the uses will be submitted to four different analyses (i.e., physically possible, legally permissible, financially feasible, and most profitable). These tests will be applied first to the Subject Properties’ land as if vacant and ready for development and then to the Subject Properties’ improvements. The AMCG team will assume that the highest and best use of the Subject Properties are 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 continue to be available. FINAL CONCLUSIONS After completing the various appraisal approaches to value, the results are compared for appropriateness and applicability to the Subject Properties. The quantity and quality of data available for examination under each approach and the advantages and disadvantages of each approach is considered and weighed to derive an estimated opinion of market value and/or market rent. TASK 9: DRAFT OF APPRAISAL Predicated on the findings of the conclusions derived in Task 8, develop and provide for Client review a draft of the Summary Appraisal conveying the market value or market rent for the Subject Properties for review by Client. The Summary Appraisal, which will describe the data, reasoning, and analysis used to develop the market value opinion, will be prepared in conformance with Uniform Standards of Professional Appraisal Practice (USPAP), as promulgated by the Appraisal Standards Board of the Appraisal Foundation, the Code of Professional Ethics, and the Standards of Professional Appraisal Practices of the Appraisal Institute. TASK 10: THIRD WORKING SESSION – DRAFT OF APPRAISAL Conduct a third working session (by telephone or web-based meeting software) with Client to review the draft of the Summary Appraisal and provide comments, identify questions, and make recommendations. This working session is budgeted for 1 hour. TASK 11: FINAL APPRAISAL Revise draft of the Summary Appraisal based on the comments provided, questions identified, and recommendations made by Client during the third working session and develop and provide Client final Summary Appraisal.