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HomeMy WebLinkAboutPK17-155 - Original - PROS Consulting, Inc - Riverbend Golf Complex Business Plan - 04/07/2017 // gi//i 'ffig m %r/ 0 C rds ory Cv'¢5 nr � i Document CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to City Clerics Office. All portions are to be completed. If you have questions, please contact City Clerk's Office. Vendor Name: PROS Consulting, Inc.. Vendor dumber: JD Edwards Number Contract Number:. P -II This is assigned by City Clerk's Office Project Name: Riverbend Golf Complex Business Plan Description: ❑ Interlocal Agreement ❑ Change Order ❑ Amendment Contract ❑ Other. Contract Effective date: 4/7/2017 Termination Cate: 12/31/2017 Contract Renewal Notice (Days): g Number of days required notice for te, rnination o, renewal or amiendment Contract Manager: Julie Para;scondola Department: Parks-Admin Contract Amount: Up to $60,000 Approval Authority: (CIRCLE ONE) Department Director Ma car City Council Detail: (i.e., address, location, parcel number, tax id, etc.): As of: 08/27/14 ' e • KENT wnsir.�ru. CONSULTANT SERVICES AGREEMENT between the City of Kent and PROS Consulting, Inc THIS AGREEMENT is made between the City of Kent, a Washington municipal corporation (hereinafter the "City"), and PROS Consulting, Inc organized under the laws of the State of Indiana, located and doing business at 201 South Capitol Avenue, Suite 505, Indianapolis, Indiana 46225, 877-242-7760 (hereinafter the "Consultant"). I. DESCRIPTION OF WORK. Consultant shall perform the following services for the City in accordance with the following described plans and/or specifications: Complete an Operational Audit and Business Plan Development for the Riverbend Golf Complex in accordance with the Description of Services, dated March 1, 2017, attached and incorporated herein as Exhibit A. Consultant further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices within the Puget Sound region in effect at the time those services are performed. II. TIME OF COMPLETION. The parties agree that work will begin on the tasks described in Section I above immediately upon the effective date of this Agreement. Consultant shall complete the work described in Section I by December 31, 2017. III. COMPENSATION. A. The City shall pay the Consultant, based on time and materials, an amount not to exceed $60,000, for the services described in this Agreement. This is the maximum amount to be paid under this Agreement for the work described in Section I above, and shall not be exceeded without the prior written authorization of the City in the form of a negotiated and executed amendment to this agreement. The Consultant agrees that the hourly or flat rate charged by it for its services contracted for herein shall remain locked at the negotiated rate(s) for a period of one (1) year from the effective date of this Agreement. The Consultant's billing rates shall be as delineated in Exhibit A. B. The Consultant shall submit monthly payment invoices to the City for work performed, and a final bill upon completion of all services described in this Agreement. The City shall provide payment within forty-five (45) days of receipt of an invoice. If the City objects to all or any portion of an invoice, it shall notify the Consultant and reserves the option to only pay that portion of the invoice not in dispute. In that event, the parties will immediately make every effort to settle the disputed portion. IV. INDEPENDENT CONTRACTOR. The parties intend that an Independent Contractor- Employer Relationship will be created by this Agreement. By their execution of this Agreement, and in accordance with Ch. 51.08 RCW, the parties make the following representations: CONSULTANT SERVICES AGREEMENT - 1 (Over$20,000) A. The Consultant has the ability to control and direct the performance and details of its work, the City being interested only in the results obtained under this Agreement. B. The Consultant maintains and pays for its own place of business from which Consultant's services under this Agreement will be performed. C. The Consultant has an established and independent business that is eligible for a business deduction for federal income tax purposes that existed before the City retained Consultant's services, or the Consultant is engaged in an independently established trade, occupation, profession, or business of the same nature as that involved under this Agreement. D. The Consultant is responsible for filing as they become due all necessary tax documents with appropriate federal and state agencies, including the Internal Revenue Service and the state Department of Revenue. E. The Consultant has registered its business and established an account with the state Department of Revenue and other state agencies as may be required by Consultant's business, and has obtained a Unified Business Identifier (UBI) number from the State of Washington. F. The Consultant maintains a set of books dedicated to the expenses and earnings of its business. V. TERMINATION. Either party may terminate this Agreement, with or without cause, upon providing the other party thirty (30) days written notice at its address set forth on the signature block of this Agreement. After termination, the City may take possession of all records and data within the Consultant's possession pertaining to this project, which may be used by the City without restriction. If the City's use of Consultant's records or data is not related to this project, it shall be without liability or legal exposure to the Consultant. VI. DISCRIMINATION. In the hiring of employees for the performance of work under this Agreement or any subcontract, the Consultant, its subcontractors, or any person acting on behalf of the Consultant or subcontractor shall not, by reason of race, religion, color, sex, age, sexual orientation, national origin, or the presence of any sensory, mental, or physical disability, discriminate against any person who is qualified and available to perform the work to which the employment relates. Consultant shall execute the attached City of Kent Equal Employment Opportunity Policy Declaration, Comply with City Administrative Policy 1.2, and upon completion of the contract work, file the attached Compliance Statement. VII. INDEMNIFICATION. Consultant shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the Consultant's performance of this Agreement, except for that portion of the injuries and damages caused by the City's negligence. The City's inspection or acceptance of any of Consultant's work when completed shall not be grounds to avoid any of these covenants of indemnification. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, 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, agents and volunteers, the Consultant's duty to defend, indemnify, and hold the City harmless, and Consultant's liability accruing from that obligation shall be only to the extent of the Consultant's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONSULTANT'S WAIVER OF IMMUNITY UNDER INDUSTRIAL Riverbend Golf Complex - PROS Consulting Page 2 INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. In the event Consultant refuses tender of defense in any suit or any claim, if that tender was made pursuant to this indemnification clause, and if that refusal is subsequently determined by a court having jurisdiction (or other agreed tribunal) to have been a wrongful refusal on the Consultant's part, then Consultant shall pay all the City's costs for defense, including all reasonable expert witness fees and reasonable attorneys' fees, plus the City's legal costs and fees incurred because there was a wrongful refusal on the Consultant's part. The provisions of this section shall survive the expiration or termination of this Agreement. VIII. INSURANCE. The Consultant shall procure and maintain for the duration of the Agreement, insurance of the types and in the amounts described in Exhibit B, attached and incorporated by this reference. IX. EXCHANGE OF INFORMATION. The City will provide its best efforts to provide reasonable accuracy of any information supplied by it to Consultant for the purpose of completion of the work under this Agreement. X. OWNERSHIP AND USE OF RECORDS AND DOCUMENTS. Original documents, drawings, designs, reports, or any other records developed or created under this Agreement shall belong to and become the property of the City. All records submitted by the City to the Consultant will be safeguarded by the Consultant. Consultant shall make such data, documents, and files available to the City upon the City's request. The Consultant acknowledges that the City is a public agency subject to the Public Records Act codified in Chapter 42.56 of the Revised Code of Washington. As such, the Consultant agrees to cooperate fully with the City in satisfying the City's duties and obligations under the Public Records Act. The City's use or reuse of any of the documents, data, and files created by Consultant for this project by anyone other than Consultant on any other project shall be without liability or legal exposure to Consultant. XI. CITY'S RIGHT OF INSPECTION. Even though Consultant is an independent contractor with the authority to control and direct the performance and details of the work authorized under this Agreement, the work must meet the approval of the City and shall be subject to the City's general right of inspection to secure satisfactory completion. XII. WORK PERFORMED AT CONSULTANT'S RISK. Consultant shall take all necessary precautions and shall be responsible for the safety of its employees, agents, and subcontractors in the performance of the contract work and shall utilize all protection necessary for that purpose. All work shall be done at Consultant's own risk, and Consultant shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. XIII. MISCELLANEOUS PROVISIONS. A. Recyclable Materials. Pursuant to Chapter 3.80 of the Kent City Code, the City requires its contractors and consultants to use recycled and recyclable products whenever practicable. A price preference may be available for any designated recycled product. B. Non-Waiver of Breach. The failure of the City to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and remain in full force and effect. C. Resolution of Disputes and Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any dispute, difference or claim arising from the parties' performance of this Agreement, the exclusive means of resolving that dispute, difference or claim, shall only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in Riverbend Golf Complex - PROS Consulting Page 3 writing to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the parties' performance of this Agreement, each party shall pay all its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph shall be construed to limit the City's right to indemnification under Section VII of this Agreement. D. Written Notice. All communications regarding this Agreement shall be sent to the parties at the addresses listed on the signature page of the Agreement, unless notified to the contrary. Any written notice hereunder shall become effective three (3) business days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. E. Assignment. Any assignment of this Agreement by either party without the written consent of the non-assigning party shall be void. If the non-assigning party gives its consent to any assignment, the terms of this Agreement shall continue in full force and effect and no further assignment shall be made without additional written consent. F. Modification. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and Consultant. G. Entire Agreement. The written provisions and terms of this Agreement, together with any Exhibits attached hereto, shall supersede all prior verbal statements of any officer or other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner this Agreement. All of the above documents are hereby made a part of this Agreement. However, should any language in any of the Exhibits to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. H. Compliance with laws. The Consultant agrees to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to Consultant's business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of those operations. I. Public Records Act. The Consultant acknowledges that the City is a public agency subject to the Public Records Act codified in Chapter 42.56 of the Revised Code of Washington and documents, notes, emails, and other records prepared or gathered by the Consultant in its performance of this Agreement may be subject to public review and disclosure, even if those records are not produced to or possessed by the City of Kent. As such, the Consultant agrees to cooperate fully with the City in satisfying the City's duties and obligations under the Public Records Act. J. City Business license Required. Prior to commencing the tasks described in Section I, Contractor agrees to provide proof of a current city of Kent business license pursuant to Chapter 5.01 of the Kent City Code. K. Counterparts and Signatures by Fax or Email. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement. Further, upon executing this Agreement, either party may deliver the signature page to the other by fax or email and that signature shall have the same force and effect as if the Agreement bearing the original signature was received in person. IN WITNESS, the parties below execute this Agreement, which shall become effective on the last date entered below. All acts consistent with the authority of this Agreement and prior to its effective date are ratified and affirmed, and the terms of the Agreement shall be deemed to have applied. Riverbend Golf Complex - PROS Consulting Page 4 CONSULTANT: CITY OF KENT a r By r w 6. It- By: (si ature) (signature) Prink Name: -co,,J int Na Suzette Cooke. Its , Its ma or (titre) DATE: � 0/7 DATE :— NOTICES S TO BE SENT TOE..... _.. NOTICES TO BE SENT TO. CONSULTANT: CITY OF T; PROS Consulting, Inc Julie Parascondola, Director Levan Younger City of Dent 201 South Capitol Avenue, Suite 505 220 Fourth Avenge South Indianapolis, Indiana 46225 bent, WA 98032 877-253-7760 (telephone) 877-253-7761 (facsimile) (253) 856-5100 (telephone) Icon.you nraer(ftrosc:onsultina.com (253) 856-60 r0 (facsimile) ApP AS TO FORM: Dent La epartme,nt - ®_ n:IC0nRracWRaxw,1Edm Riverbend Golf Complex - PROS Consulting Page 5 DECLARATION CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY POLICY The City of Kent is committed to conform to Federal and State laws regarding equal opportunity. As such all contractors, subcontractors and suppliers who perform work with relation to this Agreement shall comply with the regulations of the City's equal employment opportunity policies. The following questions specifically identify the requirements the City deems necessary for any contractor, subcontractor or supplier on this specific Agreement to adhere to. An affirmative response is required on all of the following questions for this Agreement to be valid and binding. If any contractor, subcontractor or supplier willfully misrepresents themselves with regard to the directives outlines, it will be considered a breach of contract and it will be at the City's sole determination regarding suspension or termination for all or part of the Agreement; The questions are as follows: 1. I have read the attached City of Kent administrative policy number 1.2. 2. During the time of this Agreement I will not discriminate in employment on the basis of sex, race, color, national origin, age, or the presence of all sensory, mental or physical disability. 3. During the time of this Agreement the prime contractor will provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 4. During the time of the Agreement I, the prime contractor, will actively consider hiring and promotion of women and minorities. 5. Before acceptance of this Agreement, an adherence statement will be signed by me, the Prime Contractor, that the Prime Contractor complied with the requirements as set forth above. By signing below, I agree to fulfill the five requirements referenced above. By: For: Title: Date: EEO COMPLIANCE DOCUMENTS - 1 CITY OF KENT ADMINISTRATIVE POLICY NUMBER: 1.2 EFFECTIVE DATE: January 1, 1998 SUBJECT: MINORITY AND WOMEN SUPERSEDES: April 1, 1996 CONTRACTORS APPROVED BY Jim White, Mayor POLICY: Equal employment opportunity requirements for the City of Kent will conform to federal and state laws. All contractors, subcontractors, consultants and suppliers of the City must guarantee equal employment opportunity within their organization and, if holding Agreements with the City amounting to $10,000 or more within any given year, must take the following affirmative steps: 1. Provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 2. Actively consider for promotion and advancement available minorities and women. Any contractor, subcontractor, consultant or supplier who willfully disregards the City's nondiscrimination and equal opportunity requirements shall be considered in breach of contract and subject to suspension or termination for all or part of the Agreement. Contract Compliance Officers will be appointed by the Directors of Planning, Parks, and Public Works Departments to assume the following duties for their respective departments. 1. Ensuring that contractors, subcontractors, consultants, and suppliers subject to these regulations are familiar with the regulations and the City's equal employment opportunity policy. 2. Monitoring to assure adherence to federal, state and local laws, policies and guidelines. EEO COMPLIANCE DOCUMENTS - 2 1 CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE STATEMENT This form shall be filled out AFTER COMPLETION of this project by the Contractor awarded the Agreement. I, the undersigned, a duly represented agent of Company, hereby acknowledge and declare that the before-mentioned company was the prime contractor for the Agreement known as that was entered into on the (date), between the firm I represent and the City of Kent. I declare that I complied fully with all of the requirements and obligations as outlined in the City of Kent Administrative Policy 1.2 and the Declaration City of Kent Equal Employment Opportunity Policy that was part of the before-mentioned Agreement. By: For: Title: Date: EEO COMPLIANCE DOCUMENTS - 3 0001 IT111104r, 01, .............../11--1.111 10 ENT W A -, A�NG rON EXHIBIT A CITY OF KENT I DEPARTMENT OF PARKS, RECREATION AND COMMUNITY SERVICES RIVERBEND GOLF COMPLEX, OPERATIONAL AUDIT AND BUSINESS PLAN DEVELOPMENT SCOPE OF SERVICES MARCH 1, 2017 COURSE SUMMARY The Riverbend Golf Complex (RGC) is, owned and operated by the City of Kent, The golf complex is a public facility and consists of a Championship 18 Hole Golf Course, 9 Hole Par 3 Golf Course, Driving Range, Miniature Golf and Golf Merchandise Retail' Store, The Championship 18 Hole Golf Course opened in 1989 and has consistently been ranked as one of the busiest golf courses in the state for the past 16 years, The Golf Divlslon, as part of the Parks, Recreation and Community Services Department has operated the facility since 2000, The Riverbend Golf Complex is situated on 160 acres of former agricultural land adjacent to the Green River in the Kent Valley. The golf complex is bisected north and south by Meeker Street, with the Par 3 Golf Course and Driving Range facilities located on the south side and the 18 Hole Golf Course and main clubhouse located on the north side. In addition, the golf complex is bordered by the very popular and heavily used Green River Trail, The 18 Hole Golf Course is recognized as one of the busiest course in the state with 65,000 rounds annually, while the Par 3 Golf Course hosts an additional 25 ,000 rounds annually. The 18 Hole Golf Course is flat and easy to walk, yet offers a challenge to all skill levels of players with over 50, bunkers and three lakes. The Par 3 Golf Course is great for beginners and players looking to improve their skills and offers a flat, easy to walk, easy to play golfing experience, In addition to the two golf courses, the golf complex also has a 32 stall driving range, 18 holes of miniature golf and a full scale golf merchandise retail store, CHANGE IN BUSINESS MODEI,., Riverbend Golf Complex, like many municipal courses across the United States, for over a decade has operated in the negative due to many influencing factors, which contributed to a cumulative $3- million-dollar deficit within its enterprise fund. The course is aging and in dire need of capital re- investment in its equipment, assets and infrastructure in order to maintain its quality golf experience, In April 2014, the Kent City Council authorized staff to pursue surplussing the Par 3 property, which was later re-zoned for development, After a formal public process launched In 2016, a purchase and sale agreement was entered into with Landmark/FNW/HAL, who plans to develop the property in two phases, which will include mixed-use retail/multi-family residential community, with commercial/retail space and recreational elements built throughout. With the sale of the Par 3, the expectation is the proceeds from the property will be re-invested into the Riverbend Golf Complex, both to zero out negative working capital and to provide for capital re-investment of golf assets and infrastructure, The course now needs to go through an extensive operational review and business planning process to address this reduction in its business model (with the loss of the Par 3) and to look at right-sizing the course operations for viable, long term sustainability, OPERATIONAL AUDIT AND BUSINESS PLAN SEGMENTS Below are segments the new business model needs to analyze, audit, address and answer. Questions and comments are meant as a guide to clarify expectations of deliverables and is not meant to be all inclusive. 1. GUIDING PRINCIPLES a. Need to determine how the course aligns with or contributes to the City of Kent's values, vision and mission? b. Need to determine how the course aligns with or contributes to the Department of Parks, Recreation and Community Services values, vision and mission? c, Need to define Riverbend Golf Complex's core, essential and discretionary services. d. Need to clarify policy expectations or form of governance to address the following questions: I. Is the Golf Enterprise Fund required to provide a golf experience to golfers at every level of playing ability or only those who are financially self-sustaining? ii. Should the Golf Enterprise Fund be obligated to make short-term investments in programs such as junior golf, in which the financial return is at best long-term and perhaps widely unknown? While the support of junior golf is a "feel-good-story," it requires significant investment to serve a narrow customer niche, requiring the allocation of resources from a larger customer base whose financial support provides the economic sustainability for the overall Golf Enterprise Fund. ill. At what level should the Golf Enterprise Fund support functions and services provided by the City of Kent? What factors determine allocation approach? 2. GEOGRAPHIC, LOCAL MARKET ANALYSIS a. Need to determine if there is sufficient demand with appropriate demographics to meet the available golf supply? b. Need to determine if the age, income, ethnicity and population density is sufficient to sustain the golf course? c. Need to determine who the current Riverbend Golf customer is? d. Is the RGC a local facility or a regional facility? Need to determine RGC's service area. e. What type of course brand or identity does RGC have? Is it for more advance golfers? Entry level golfers? f. How many golf courses are within RGC's service area? What types? Focusing on municipal courses, how does the RGC compare via pricing and golf experience? g. Need to research demographic trends of the local golfer base, supply levels, mix, current supply/demand balance and the impact of historical supply dilution. 3, WEATHER IMPACT ANALYSIS a, Need to determine what impact Kent's weather has historically played on rounds versus management policies? b. Assist in the development of assessing an estimated annual amount of playable days. c. Determine what is the viable operating season for RGC based on weather impacts and financial sustainability. 2 d. Assist in determining if the course's operating schedule is consistent with the seasonal forecast and measuring utilization against capacity to determine if management is under or over-performing against the weather. 4. TECHNOLOGY a. Need to determine how effectively has an integrated golf management solution been deployed to create the aggregation of data required to properly manage? b. Need to determine what technology tools are currently used at RGC in order to operate, market and maintain operations? Are they effective? What are the identified ROls? c. How are golf tee times scheduled? What system is used? Is it effective? 5. PERFORMANCE METRICS a. Need to determine how RGC's operational performance compares to other similar size municipal golf courses, industry benchmarks? What are RGC strengths, weaknesses? b. Need to determine how RGC manages and tracks course performance? Is it effective in assisting in the decision making process? c. Determine Riverbend Golf Complex's contribution to economic impact within the City of Kent. 6. GOLF OPERATION AND COURSE AGRONOMIC REVIEW a. Need to evaluate the golf course's agronomic and turf practices and equipment levels against best practices? b. Does the course have a maintenance management program that correctly aligns with the financial limitations of the course? What adjustments should be made? c. Need to answer what tools are used by RGC staff in evaluating and measuring user acceptance/tolerance of course conditions? d. What staffing levels are appropriate for sustainable maintenance operations of the course. e. Need to develop a 6 year, prioritized capital improvement plan with a future lifecycle replacement program. 7. MANAGEMENT, MARKETING AND OPERATIONAL REVIEW a. Need to determine if the value provided to the golfer equal or exceed the associated fees? b. Need to determine if the proper operating procedures are consistently deployed through each step of the golf experience? c. Need to evaluate and compare RGC's staffing, organizational structure, merchandising, food and beverage, advertising and marketing to industry best practices? d. Need to determine if the golf course has the appropriate organizational alignment. e. Audit and review RGC's marketing collateral, website and social media for comparisons against best practices. 8, CUSTOMER PREFERENCES AND LOYALTY a. Need to identify who is the RGC's core customers and how much do they spend? b. Need to identify what is the annual retention of golfers? c. Need to identify what are the barriers to increased play? d. Need to identify what is the golfer's perceived value? e. Need to understand what is the primary reason golfer's chose one course over another? f. Need to measure how loyal are RGC's customers? 3 9. PROGRAMS AND EDUCATION a. Analyze the performance and financial sustainability of programs and provide strategies and recommendations for future sustainability. b. What are the current programming models at RGC? Are they cost recovering and meeting program maximums? c. What types of lesson programs are offered? At what price points? Do they cost recover? d. Need to identify what%of the course operating budget goes towards subsidized programming and/or youth/high school golf, e. What%of subsidized use is impacting high profit tee-time rounds? f. How are external partnership or facility uses impacting the course and/or contributing to the mission of the course? Are the partnerships equitable via ROI? g. Analyze and estimate the feasibility and long term sustainability of transitioning the previous miniature golf site to an upgraded training/learning center. h. Need to develop a business model and criteria of approach on subsidized programming that does not cost recover. How much can the profit areas of the course absorb? i. What is the course's expectation, if any, to adhere and align with the Department's Cost Recovery Program? 10. FINANCIAL MODELING / REVENUE MANAGEMENT a. Determine if course management has accurate financial models that support proactive decision making? b. Analyze the performance and financial sustainability of the following business units and provide strate-gies and recommendations for future sustainability; i. General Management 1. What are the policy expectations of the course to be self-sustainable? Is this all-inclusive? To include capital, debt service, contributions towards City overhead,facilities interfund charges, etc. If these operations were privatized, would the cost compare to the cost being charged by the City? 2. Recognize and identify the mandated policy changes to golf course operations that contributed to loss of sustainability within the last several years: City overhead, facilities interfund chargers,change in admission tax, etc. ii. Merchandise 1. Is the merchandise achieving its profit margins? 2. How are cost of goods sold determined? How many inventory turns annually? 3. What percentage of discounting of goods occurs annually? 4. Does the RGC provide packaging, train in upselling, etc. 5. How does the RGC know which product mix to offer as merchandise? Survey the customers? iii. Food and Beverage iv. Programs, Lessons and Partnerships 1. Analyze the performance and financial sustainability of programs and provide strategies and recommendations for future sustainability. 2. What are the current programming models at RGC? Are they cost recovering and meeting program maximums? 3. What types of lesson programs are offered? At what price points? Do they cost recover? 4, Need to identify what%of the course operating budget goes towards subsidized programming and/or youth/high school golf. 5. What%of subsidized use is impacting high profit tee-time rounds? 6. How are external partnership or facility uses impacting the course and/or contributing to the mission of the course? Are the partnerships equitable via ROI? T Need to develop a business model and criteria of approach on subsidized programming that does not cost recover. How much can the profit areas of the course absorb? 4 EXHIBIT B INSURANCE REQUIREMENTS FOR CONSULTANT SERVICES AGREEMENTS Insurance The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, their agents, representatives, employees or subcontractors. A. Minimum Scope of Insurance Consultant shall obtain insurance of the types described below: 1. Automobile Liability insurance covering all owned, non- owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01. The City shall be named as an Additional Insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City using ISO additional insured endorsement CG 20 10 11 85 or a substitute endorsement providing equivalent coverage. 2. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. B. Minimum Amounts of Insurance Consultant shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. EXHIBIT B (Continued) C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability and Commercial General Liability insurance: 1. The Consultant's insurance coverage shall be primary insurance as respect the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Consultant's insurance and shall not contribute with it. 2. The Consultant's insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. 3. The City of Kent shall be named as an additional insured on all policies (except Professional Liability) as respects work performed by or on behalf of the Consultant and a copy of the endorsement naming the City as additional insured shall be attached to the Certificate of Insurance. The City reserves the right to receive a certified copy of all required insurance policies. The Consultant's Commercial General Liability insurance shall also contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than AN II. E. Verification of Coverage Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Consultant before commencement of the work. F. Subcontractors Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the same insurance requirements as stated herein for the Consultant. ACC)Ro® CERTIFICATE OF LIABILITY INSURANCE r3/30/2017 ATE(MM!DDlYYYY) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: if the certificate holder is an ADDITIONAL INSURED,the policy(les)must be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsements. PRODUCER CONTACTRobin Straw NAME: Sycamore Insurance Associates LLC PHONE (812)242-1414 FAX (812)242-2042 JAC NoxENJ1: _ _ - A C No): 999 Ohio Street E-MAIL rstraw@sycamoreins.com INSURER(Sl AFFORDING COVERAGE_ NAIC p Terre Haute IN 47807 INSURER A:Hart ford 00914 - — --- INSURED -- -- - .- --- .. - INSURER B PROS Consulting Inc. INSURERC: 201 S Capitol Avenue INSURERD: Suite 505 INSURERE: Indianapolis IN 46225 INSURERF: COVERAGES CERTIFICATE NUMBER:CL1722401727 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENF WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR - LTR: TYPE OF INSURANCE i aH POLICY NUMBER POLICY EFF l POLICY EXP -- uMms X COMMERCIAL GENERAL LIABILITY If EACH OCCURRENCE § 2,000,000 A GE TO Ik9FTEU CLAIMS-IAADE L^ 1 OCCUR ;?REM PREMISES Ea oaunencel $ 500,000 X !369BAAQ6552 3/1/2017 j 3/1/2018 MED EXP(Anycne person) § 10,000 PERSONAL SADV INJURY _ § 2,000,000 GEN'LAGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE § 4,000,000 PRO. X I POLICY JECT 0 LOG 'PRODUCTS-CO.'UP/OP AG G $ 4,000,000 OTHER: - - $ --- --- AUTOMOBILE LIABIIJTY GOMBINFFDSINGLE LIMIT Is(Ea accident) -1 2,000,000 A X ANY AUTO ^� BODILY INJURY(Per person) S ALL OWNED I SCHEDULED I 365BJ►AQ6552 3 11/2017 3/1/2016 BODILY (Per $ AUTOS AUTOS ! X ( )' l_X, HIRED AUTOS X I AUTOS NED PROPERTY DAMAGE i$ - f j (Per accidentt - -. 1$ X UMBRELLA LIAR I X I OCCUR EACH OCCURRENCE $ 21000,000 A EXCESS LIAR CLAIMS-MADE! AGGREGATE $ 2,000 000 DEO I X I RETENTION$ 10 000 X 36SBAAQ6552 3/1/2017 3/1/2018 $ WORKERS COMPENSATION X R 'OTH- ANDEMPLOYERS'LIABILITY Y/N J I _, _STATUTE I ER ANY PROPRIETORIPARTNER/EXECUTIVE OFnCERIMEMBER EXCLUDED? N l A i E.L.EACH ACCIDENT $_ _ 1,000,000 A 'tyyaeesss,atorydescrcr�N unde1 36WBCIC9016 i 4/2/2017 ; 4/2/2018 E.L.DISEASE-EA EMPLOYE $ 1,000,000 DESCRIPTION OF OPERATIONS below ` E.L.DISEASE-POLICY LIMIT $ 1 000 000 A Professional Liability I 136PG0288700 3/1/2017 1 3/1/2018 AGgregale Limit 1,000,000 Rotanlion 7,500 DESCRIPTION OF OPERATIONS!LOCATIONS/VEHICLES(ACORD 101,Additional Remarks Schedule,may bo attached It more space is required) CERTIFICATE HOLDER CANCELLATION tpetrole@kentwa.gov SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE Kent Parks, Recreation & Community Servic THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 220 4th Avenue South ACCORDANCE WITH THE POLICY PROVISIONS. Kent, WA 98032 AUTHORIZED REPRESENTATIVE Don Scott/ROBINS 01988-2014 ACORD CORPORATION. All rights reserved. ACORD 25(2014/01) The ACORD name and logo are registered marks of ACORD INS025(201401) THE HARTFOR Add Additional Interest Policy: 36SBAAQ6552(Property/General Liability)—PROS CONSULTING Effective: 03/30/2017 Add: Additional Insured-Designated Person/Organization Kent Parks, Recreation& Community Services 220 4th Avenute South, Kent, WA 98032 Re4ationship to Insured: Insured's Customer/Client Location Description Certificate of Insurance: No Additional Comments: Acid Al to auto and QL(Primary)coverage;Acid 30 day notice of cancellation Hide Comments i ._ _...rr_i. _ n. r ...�.. .r . r_a_ .v�. .-r,.r,a i.. r..-_—�._ _.� - _ n. .r.r_..�_. . r r ^• r-rn wnn�� w uu a