HomeMy WebLinkAboutResolution #3907 - agreement for professional consulting services with pros consulting, llcRESOLUTION NO. 3 9.0.7_ _. _
A RESOLUTION APPROVING AN AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES
BETWEEN THE CITY OF CANTON, ILLINOIS AND PROS CONSULTING, LLC
WHEREAS, the City Council entertained a proposal from PROS Consulting, LLC to conduct a
comprehensive evaluation of the local public golf course and develop an outcome based feasibility study to guide
the City in their decisions regarding recreation and park facilities within the City of Canton;
WHEREAS, the City Council has reviewed the terms of the proposed agreement, as set forth in Exhibit
"A" attached hereto and incorporated herein and have determined that it is necessary and in the best interests of the
City of Canton to enter into said agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY
OF CANTON, ILLINOIS, AS FOLLOWS:
1. That the agreement attached hereto and incorporated herein as Exhibit "A" is hereby approved by the
Canton City Council.
2. That the Mayor of the City of Canton, Illinois is hereby authorized and directed to execute said Agreement
on behalf of the City of Canton.
3. That this Resolution shall be in full force and effect immediately upon its passage by the City Council of
the City of Canton, Illinois and approval by the Mayor thereof.
PASSED by the City Council of the City of Canton, Illinois at a regular meeting this 3rd day of
November , 2009 upon a roll call vote as follows:
AYES: Aldermen Reed, Sarff, Rivero, Ellis.
NAYS: Aldermen Schenck, West, Hartford.
ABSENT: Alderman Jason Strandberg resigned on 9-22-09.
APR ED:
Kevin R. Meade, Mayor
ATTEST:
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Nancy S. Wh' es, City Clerk
AGREEMENT
For
PROFESSIONAL CONSULTING SERVICES
Between
The City of Canton, Illinois
and
PROS Consulting, LLC
THIS AGREEMENT made as of November 3, 2009 and between the City of Canton, Illinois (hereinafter
called OWNER) and PROS Consulting, an Indiana Limited Liability Company specializing in consulting
services (hereinafter called CONSULTANT).
Thls contract is for Professional Consulting Services related to the Golf Course Feasibility Study
(hereinafter called PROJECT) as described in EXHIBIT A.
Section 1- Employment of Consultant
The OWNER agrees to employ the CONSULTANT and the CONSULTANT agrees to furnish consulting
services in connection with the PROJECT as stated in Section II following, and for having rendered
such services the OWNER agrees to pay to the CONSULTANT compensation as stated in Section V
following.
The parties agree, understand and acknowledge that the CONSULTANT is an independent contractor
and not an employee, officer or appointed official of the OWNER. Under no circumstances shall this
Agreement be construed as creating a joint venture or a principal/agent relationship between the
parties. The parties also agree, understand and acknowledge that the OWNER shall not be charged
with the supervision, methodology, sequence or safety precautions of the work undertaken by
CONSULTANT arising directly or indirectly pursuant to this Agreement.
Section II - Character and Extent of Services
The Professional Services to be rendered by Consultant shall be performed as described in EXHIBIT A.
Section I11- Authorization of Services
No professional services of any nature shall be undertaken by the CONSULTANT under this
agreement until he has received authorization from the OWNER.
Section IV - Period of Service
This AGREEMENT shall be effective upon execution by the OWNER and the CONSULTANT and shall
remain in force until terminated under the provisions hereinafter provided in Section VII.
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Section V - The Consultants' Compensation
For and in consideration of the services to be rendered by the CONSULTANT, the OWNER shall pay,
and the CONSULTANT shall receive the compensation hereinafter set forth for the Tasks as described
in Exhibit A, Scope of Services.
Compensation shall be $18,190 including expenses for tasks as presented in Exhibit A, Scope of
Services. Cost schedule by task in presented in Exhibit B.
CONSULTANT shall submit monthly statements for services rendered, based upon percentage of
completion of the major work elements identified in the Scope captained in EXHIBIT A attached to
and made part of this contract.
It is agreed by both the OWNER and the CONSULTANT that the fees paid under this "Agreement for
Professional Consulting Services" shall not exceed $18,190 including expenses for baseline tasks as
presented in Exhibit A.
Section VI - Ownership of Documents
OWNER is hereby granted a royalty free, perpetual license to use, reproduce, copy and distribute the
Work Product for itself and for its other contractors, subcontractors and consultants either as needed
in connection with the work contemplated under this Agreement. or as needed for reference and
information related to the use, occupancy or maintenance of the completed projects ("Owner's
License"). OWNER hereby acknowledges that CONSULTANT owns all right, title and interest in a{I
Work Product created or delivered by CONSULTANT under this Agreement, including, but not limited
to, any and all plans, specifications, drawings, designs, models, ideas, reports, software programs and
the object code, source code, reports and executables related thereto tcollectively the "Work
Product"), and that OWNER has no rights in such other than as specified in this Agreement. OWNER
acknowledges that the Work Product will not be or was not created as a work for hire and agrees
that it will not attach the title of CONSULTANT to any of the Work Product.
Section VII -Termination
OWNER may terminate this contract at any time by notice, in writing, to CONSULTANT. If the
contract is terminated by OWNER, as provided herein, CONSULTANT shall be compensated for actual
work performed to the date of such notification. Upon delivery of such notice by the OWNER to the
CONSULTANT, the CONSULTANT shall discontinue all services in connection with the performance of
the AGREEMEN7 and shall proceed to cancel promptly all existing orders and contracts insofar as
such orders or contracts are chargeable to the AGREEMENT. As soon as practicable after receipt of
notice of termination, the CONSULTANT shall submit a statement, showing in detail the services
performed under the AGREEMENT less such payments on account of the charges as have been
previously made.
Section VIII - Successors and Assignments
OWNER and CONSULTANT each binds itself and its successors, agents, employees, and assigns to the
other party of this contract and to the successors, agents, employees, and assigns of such other party
in respect to all, covenants of this contract. Nothing herein shall be construed as creating any
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personal liability on the part of any officer or agent of any public body which may be in a party
hereto.
Section IX - Time of Completion
CONSULTANT proposes to complete the Project over 5- to 6-week schedule (project timeline to be
determined at execution of this contract) from the Notice to Proceed.
Section X - Owner Indemnified
The CONSULTANT shall hold harmless and indemnify the OWNER from all claims and liability but
excluding consequential damages of any description due to activities of himself, his agents, or
employees, performed under this contract and which results from a gross negligent act, error, or
omission of the CONSULTANT or any person employed by the CONSULTANT. The CONSULTANT shall
also save harmless the OWNER from any and all expenses, including attorney fees which might be
incurred by the OWNER in litigation or otherwise resisting said claim or liabilities which might be
imposed on the OWNER as the result of such activities by the CONSULTANT, his agents, ar
employees.
The indemnification herein contained is not intended to circumvent or otherwise limit any provisions
set forth In the Local Government and Governmental Employee's Tort Immunity Act.
Section XI - Professional Liability Insurance
CONSULTANT shall maintain, in force, during the period of this contract, Professional Liability
Insurance (errors and omissions insurance) with limits as follows: Aggregate Limit of Liability-
$300,000; Per Claim Limit of Liability - $300,000. Simultaneously with execution of this contract,
CONSULTANT shall furnish to OWNER, a certificate of insurance showing aforesaid coverage of
CONSULTANT.
Section XII -Services by Owner
OWNER shall perform the following services related to PROJECT.
Make available to CONSULTANT information and data pertinent to the assignment including previous
reports and any other data relative thereto.
Provide access to and make all provisions for CONSULTANT to enter upon public and private property
as required for CONSULTANT to perform its services under this agreement.
Furnish OWNER'S own legal, accounting, financial, and insurance counseling services as may be
required for the PROJECT.
Designate an individual to act as OWNER'S representative with respect to the services to be
performed under this agreement. Said person shall have the authority to transmit instructions,
receive information, interpret and define OWNER'S policies and decisions with respect the PROJECT,
and other matters pertinent to the services covered by this agreement.
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Section XIII - Miscellaneous
For the purposes of this AGREEMENT, alt written correspondence shall be directed to the addresses
listed below:
OWNER: Kevin R. Meade
Mayor
City of Canton, Illinois
2 N. Main St.
Canton, Illinois 61520
CONSULTANT: Damon R. Cobb
Senior Manager
PROS Consulting, I.LC
1114 South Elm Street, Suite 202
Carrollton, TX 75006
(214) 870-6033
IN TESTIMONY of which this instrument i5 executed on behalf of the above named CONSULTANT, it
has been executed on behalf of OWNER, on the day and year first above written.
Signed:
PROS
By:
October 30, 2009
Name: Allen Mutlin's
Title: Vice President -Principal
Client
By: Date: November 3.2009
Name: Kevin R. Meade
Title: Mavor; City of Canton, Illinois
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Exhibit A -Scope of Services
Golf Course Feasibility Study
PROS will conduct a comprehensive evaluation of the local municipal golf course and develop an
outcome based feasibility study to guide the City of Canton, Illinois, in their decision that will
ultimately determine the fate of the course. The evaluation will identify opportunities to enhance the
efficiency and revenue capacity as well as decreasing expenditures for the golf course cost centers.
Task 1- On Site Review and Course Assessment
A. Overview of Feasibility Process -PROS will meet with the City project team to confirm the
City's goals and outcome expectations for the golf course feasibility study. The primary
outcome expectations will serve as the feasibility determinants with which project success will
be gauged; these could include financial, operational, programmatic, or service oriented
objectives and goals.
B. Course Assessment - A general overview of course, including layout, paths, and ancillary
amenities, as well as general operations will be conducted. The objective of the course
assessment is to gain a basic understanding of the quality of the facilities, course, and
equipment as well as the level of service provided.
Task 2 -Operational Assessment
A. Data Collection and Review -PROS will identify, collect, and log key data and information to
facilitate assimilation of information. This review will be in all areas of operations; it is the
understanding of PROS that data from past operations will be made available. PROS will
prepare a data request far the staff to respond to as part of the initial meeting.
PROS will prepare an operational assessment with recommendations as it applies to the
following areas for the golf course
• Attendance review by age segment and time (Data Required -detailed tee sheets by
day of week/month)
• Annual pass assessment (Data Required - detailed data including
age/gender/address/and member type)
• Clubhouse rental
• Golf outing assessment (Data Required -outing information including type of outing,
dates of outings, number of participants, rates charged, and special requests/services
granted)
• Operating cost assessment with a line item budget of course operations (Data
Required -line item budget; course use by type/price point)
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• Capital improvement assessment (Data Required -records illustrating capital
projects, costs, and return on investment)
• Revenue generating capability based on existing performance (Data Required -list of
all programs offered/participants)
• Gost of services assessment
• Equipment evaluation and assessment with a capital replacement schedule (Data
Required - fist of all equipment, booked value, and replacement schedule)
• Staffing assessment (Data Required -staff schedule for one complete year by
position; staff compensation)
• Technology assessment
Task 3 -Market Analysis/Demographic Study
A. Market Demographics and Trends Analysis -PROS will determine the size of the golf
market in Canton, Illinois. Includes community specific age distribution, population density,
household income, race/ethnicity, and income characteristics. This data will be applied to
national trends in order to estimate potential user groups to aid Improved understanding of
the market. The market is analyzed from various rings of influence as illustrated.
B. Competitive Analysis of Area Providers -PROS will develop a competitive market assessment
of the private and daily fee courses in the service area. Research is conducted to determine the
existing level of services, fees, and estimated market share of both courses in the community
to understand the market and demographic being served. Local golf trends and the
competitive market assessment will be compared with national participation statistics. A
commentary of fees, course offerings, and comparisons of the two courses will be reported.
Task 4 -Financial Analysis
A. Operational Standards -PROS will establish operational standards and costs for the golf
course for full operations. Thls will include hours of operation, maintenance standards, staffing
levels needed, technology requirements and customer service requirements based on
established and agreed upon outcomes.
B. Program and Management Strategy -PROS will evaluate the existing programs and services
provided and management alternatives opportunities and develop a program and
management strategy to support the needs of golfers and create revenue for the course. This
will include identification of potential programs by specific activity, funding parameters, and
agreement guidelines to support future management agreements. Various potential
management and organizational alternatives will be developed to guide decision-making by the
City.
C. Pricing Strategy and Pro Forma -Based on the operational plan for the facility and any
current or potential debt service, PROS will develop a pricing strategy for membership, daily
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fees, and program services with the desired outcome of a sustainable facility. Pricing strategies
will also include fees, programmatic alternatives, and the potential for rental space and/or food
concession. This will be converted into a five year pro forma and operating budget. Funding
options will be identified and evaluated against their potential support and success. These
options will include a combination of partnerships and sponsorships, ancillary revenue
generation opportunities, and other available resources.
Task 5 -Golf Course Feasibility Study Report
A. Final Report - A Feasibility Study report will be written with analysis of findings, priorities,
timeframes, and recommendations. Briefings on the plan will be made and one (1) round of
revisions will be made.
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Exhibit 8 - Schedule of Fees and Hours by Task
Project Task Project
Director Project
Manager
Consultant
Task 1-On Site Reviewand Course Assessment
A. Overview of Feasibility Process 4 4
B. Course Assessment 4 4 _
TRAVEL/EXPENSES: 130 700 -
TOTAL TASI(COST: $ 1,650 $ 1,780
Task 2-.Operational Assessment
A. Data Collection and Review - - 4 10
TRAVEL/EXPENSES: _ _ _
TOTAL TASK COST: $ _ $ r~40 $ 400
Task 3 -Market Anal ss/Demogra hic Study
A. Market Demographics and Trends Analysis - 8 g
B. Competitive Analysis of Area Providers - 4 10
TRAVfL/EXPENSES: - _ _
TOTAL TASK COST: $ - $ 1,620 $ 720
Task4-FinancialAnai sis
A. O erational Standards 6 10 -
B. Pro ram and Mana ement Strateg 8 g
C. Pricing Strategy and Pro Forma 4 24 -
TRAVEL/EXPENSES: 130 700
TOTAL TASK COST:. $ 3,550 $ 6,370 $
Task S-Golf Course Feasibility Stud Report
A. Final Report - 8 12
TRAVEL/EXPENSES: - _ _
TOTAL TASK COST: $ - $ 1,080 $ 480
Total Project Ex enses: $ 1,660
TOTAL PROJECT COST: $ 18,L90
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