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CONSTRUCTION OF A NEW MODERN BOAT SLIP FACILITY ALONG THE DOWNTOWN COACHMAN PARK AREA AGREEMENT JI--- ~:Q .. THIS AGREEMENT, made and entered into this 1.3- day of l\Ji(T" t"t."- g , 2006, by and between the CITY OF CLEARWATER, FLORIDA, a municipal corporation, hereinafter referred to as "City", and Applied Technology & Management, Inc., a consulting firm, located at 2770 NW 43 Street, Suite B, Gainesville, Florida 32606, hereinafter referred to as "Consultant"; WITNESSETH WHEREAS, the City is currently considering construction of a new modern boat slip facility on the intercoastal waterway along the downtown (Coachman Park) area, and WHEREAS, the construction of these boat slips must be approved by the voters at a referendum tentatively scheduled for November 2006, and WHEREAS, in preparation for the referendum the City must provide information to the voters on the financial feasibility of the proposed boat slips, and WHEREAS, the Consultant's specific services provided will include the financial feasibility of constructing the proposed boat slips, and WHEREAS, the City received proposals from qualified consultants with specific expertise in the study, design and financial feasibility of boat slips, and WHEREAS, the Consultant was selected as the most qualified consultant under the City's Request for Proposal process, and WHEREAS, Wade Trim is the Engineer of Record for this project and Consultant will perform the feasibility study working closely with Wade Trim and City staff; NOW, THEREFORE, the parties agree as follows: 1. SCOPE OF SERVICES Consultant agrees to provide study, design and a financial feasibility study for constructing the proposed boat slips under the terms and conditions described in attached Exhibit "A" and as proposed by the consultant in their response to the RFQ in attached Exhibit "B". 2. TIME OF PERFORMANCE This Agreement shall commence on April 14, 2006 and terminate on November 7, 2006. Following are critical dates which must be met. Due by April 28 Preliminary Market analysis to determine the proper mix of boat slips, i.e., number and size of slips for the following: recreational day slips, lenant slips, a ferry landing, a commercial loading and unloading slip, excursion pickup / drop off slips, etc. Due by June 23, 2006 Final work product to include complete Market Study and Financial Feasibility Analysis 3. COMPENSATION The City will pay Consultant a sum not to exceed $49,500, inclusive of all reasonable and necessary direct expenses. The City may, from time to time, require changes in the scope of the project to be performed by Consultant hereunder. Such changes, including any increase or decrease in the amount of Consultant's compensation and changes to the terms of the Contract which are mutually agreed upon by and between the City and Consultant shall be effective when incorporated in written amendment to this Agreement. 4. METHOD OF PAYMENT Consultant's invoices shall be submitted to the City for approval for payment on a phase completion basis per the schedule below. The City agrees to promptly pay Consultant upon receipt of a proper invoice and after approval by City under the terms of the Florida Prompt Payment Act F.S. 218.70. Final Market Analysis Review of Construction Costs Review of Operational Costs Financial Feasibility Study Attend Two Council Meetings Additional Two meetings (if necessary) $20,000 $2,000 $2,000 $17,500 $5,000 $3,000 ($1,500 each) 5. RETENTION OF RECORDS Consultant shall retain all working papers for a minimum of five (5) years, unless notified in writing by the City of the need to extend the retention period. The Consultant shall make working papers available, upon request, to the City. 6. PROPERIRITY MATERIALS Upon termination of this Agreement, Consultant shall transfer, assign and make available to City or its representatives all property and materials in Consultant's possession belonging to or paid for by the City. 7. INDEMNIFICATION AND INSURANCE Consultant agrees to save and hold the City harmless from all claims or actions and judgments whatsoever involving acts or omissions by Consultant. The limits set forth in Section 768.28 Florida Statutes shall apply. Consultant further agrees to procure and maintain during the life of this Agreement adequate insurance for full coverage of Consultant's responsibilities. 8. TERMINATION OF AGREKMENT The City at its sole discretion may terminate this Agreement by giving Consultant a ten (10) day written notice of its election to do so and by specifying the effective date of such termination. Consultant shall be paid for its services through the effective date of such termination. Further, if Consultant shall fail to fulfill any of its obligations hereunder, this Agreement shall be in default, the City may terminate the Agreement, and Consultant shall be paid only for work completed. 9. CONFORMANCE WITH LA~VS Consultant agrees to comply with all applicable federal, state and local laws during the life of the Agreement. 10. GOVERNING LAW AND VENUE The laws of the State of Florida shall govern this Agreement and any action brought by either party shall lie in Pinellas County, Florida. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first above written. CITY OF CLEARWATER, FLORIDA BY:~13.~$ William B. Horne, II City Manager Approved as to form: ,~ Attest: ,.....-........ I 1.- '5(: \, ~f'/;"- li/ .___ . ,/. ,_" . ;/ ,i .~__ '/_-;:''';~;'''L_.__. '. l~c, . , ! Br~~ln D. Ruff / I Assistant City Attorney By: (, '< (Consultant) " / Attest: '~~'., ,L-/ /... EXHIBIT "A" SCOPE OF SERVICES Phase One-due by April 28, 2006: 1. Preliminary Market Analysis results to determine supply and demand and to determine occupancy levels that could be expected and rates that could be charged including: A. Market analysis to determine the proper mix of boat slips, i.e., number and size of slips for the following: recreational day slips, tenant slips, a ferry landing, a commercial loading and unloading slip, excursion pickup / drop off slips, etc. B. Market analysis to determine demand for excursions. C. Market analysis to determine what features are necessary for Clearwater to become a destination for coastal cruisers. Phase Two-due by June 23, 2006: 1. Final Market Analysis results to determine supply and demand and to determine occupancy levels that could be expected and rates that could be charged including: A. Market analysis to determine the proper mix of boat slips, i.e., number and size of slips for the following: recreational day slips, tenant slips, a ferry landing, a commercial loading and unloading slip, excursion pickup / drop off slips, etc. B. Market analysis to determine demand for excursions. C. Market analysis to determine what features are necessary for Clearwater to become a destination for coastal cruisers. 2. Review of construction cost estimates as provided by Wade Trim to determine reasonableness and completeness. 3. Review of operational cost estimates as provided by Wade Trim to determine reasonableness and completeness. 4. Financial Feasibility Study to cover 20 years to determine if the boat slips will be self supporting based upon expected occupancy, acceptable slip rental rates, debt service on both hard and soft costs to construct the boat slips, estimated operational costs, and appropriate reserve for renewal and replacement funds. Phase Three- to occur after July 1, 2006 1. Consultant will be required to attend two council meetings, the first one on July 1 ih tentatively at 1 :30pm, and the second on July 20, 2006 at 6pm. RFP -Downtown Boat Slips March 27, 2006 1 2. Consultant may need to be in attendance at one or more public meetings to discuss the financial feasibility of the boat slips. 3. The cost of attending the aforementioned meetings in subsections 1 and 2 of Phase Three directly above were included in the RFQ submittal. RFP -Downtown Boat Slips March 27, 2006 2 EXHIBIT "B" Response to RFP for: Downtown Boat Slips Feasibility Study City of Clearwater, Florida Applied Technology & Management, Inc. '.'i'.'/W.tiP;; 1l~.l{m.r;.) III OVERVIEW OF FIRM Applied Technology & Management, Inc. (A TM) is a Florida Corporation that provides waterfront development and planning, civil, environmental, water resources and coastal engineering services to public and private clients. Founded in 1984, A TM has grown to incorporate a staff of over 100 in eight strategically located offices in the eastern United States. Fully one-third of our professional staff is directly involved in waterfront development and engineering evaluations, studies and construction projects. ATM's engineering group includes over twenty Registered Professional Engineers, two Professional Geologists, Ecologists, Environmental Scientists and a Professional Surveyor/Mapper. Our team of engineers and scientists, many having Masters Degrees and PhDs in their areas of expertise, have developed a high level of respect within State and Federal regulatory agencies allowing us to provide exemplary service to our diverse client base. Our office locations are: .. Gainesville, Florida* . West Palm Beach, Florida II Cocoa Beach, Florida II Jacksonville, Florida II Savannah, Georgia II Hilton Head, South Carolina II Mount Pleasant, South Carolina II Newport, Rhode Island *Corporate Headquarters Specifically, ATM has a dedicated Marina and Waterfront Development Division that has been involved with over 300 marina projects supporting both public and private interests across the eastern United States and overseas. Our marina team consists of marine planners, engineers, ecological scientists, water quality experts, economists, marina business analysts, and operations experts. We maintain full, in-house expertise covering the three crucial areas of waterfront work and redevelopment feasibility: Economic, Engineering and Operational. Our Marina Team is experienced in all facets of marina design and development, including preliminary planning, feasibility studies, cost estimating, business pro-forma preparation, environmental permitting, detailed plans and specifications, bidding, and construction oversight. Over the past 15 years A TM has developed a specialized approach to waterfront development for municipal clients. This has resulted from marina feasibility, design, and construction work in Florida, South Carolina, North Carolina, and Delaware among other locations for clients such as the City of Daytona Beach, FL, the City of S1. Augustine, FL, City of Punta Gorda, and the Town of Lake Park, FL. A more comprehensive listing of current and past municipal marina clients is provided later in this response. Between 2003 and 2005 ATM provided engineering services for over $67,000,000 in marina construction. Much of this work was for public entities. 1 ~ ATM has helped our public/municipa/ clients obtain millions of dollars in grant funding over the past several years. We have worked with state, federal and local agencies in the procurement of grant funding. This work has included both Tier 1 and Tier 2 Boating Infrastructure Grant Program (BIG P) funding. A TM has experience with Community Involvement Programs for marina redevelopment and expansion projects and has conducted numerous public workshops, education programs and community involvement programs for marinas that have been highly successful in Fernandina Beach, Daytona Beach, St. Augustine, Naples, Ft. Pierce, Jacksonville, Titusville, St. Johns County, Charleston, Beaufort, St. Lucie County, Palm Beach County, Lake Park, Columbus, etc. If selected, the ATM team would perform the boat slip feasibility study primarily from our Gainesville, Florida office. As noted previously, this office serves as A TM's corporate headquarters. ATM's project team would consist of professionals from several office locations, though Mr. Robert Semmes and Mr. Don Petrella out of the Gainesville office would serve as the primary points of contact for the City. All project work will be completec with direct coordination and supervision provided by Mr. Tim Mason, P.E., ATM Marina Team Leader, and Mr. Sam Phlegar, A TM Coastal and Marina Division Director. PROJECT TEAM QUALIFICATIONS Mr. Don Petrella Mr. Petrella has several years experience in marina and waterfront planning and has worked on similar projects across the eastern U.S., most recently for marinas in Carrabelle, Florida and Mount Pleasant, SC. In addition to his marina knowledge, Mr. Petrella has 15 years experience in commercial real estate market analysis, feasibility analysis, site selection, economic impact analysis and pro forma development. Mr. Petrella holds a Master's Degree in Food and Resource Economics from the University of Florida where he specialized in land valuation techniques. Mr. Robert Semmes, M.S. Mr. Semmes has been with A TM for 17 years and has developed expertise in the areas of water resources and coastal related projects. He has worked with private and public sector throughout the Southeast and the Caribbean. In 1994, he developed an economic planning model for marina development and has applied the tool on over 20 waterfront development projects during planning and funding, as well as post operational phases. It is a proprietary model with interactive spreadsheets projecting a multitude of what-if scenarios. Mr. Sam Phlegar, P.E., Principal, A TM Division Director Mr. Phlegar serves as the Director of the Coastal-Marina Division, responsible for all ATM coastal, waterfront and international development projects. He has practiced engineering for 22 years and has over 16 years of professional experience in waterfront development, coastal engineering and program management. His primary fields of concentration includE' marina and waterfront planning and development; coastal engineering; and coastal r:;onstruction, dredging/disposal, and beach restoration. He specializes in coastal and waterfront projects serving both public and private interests across the United States and internationally. 2 ~ Mr. Phlegar has significant experience in engineering design, economic feasibility assessments, local, state, and federal regulatory permit approvals and successful construction programs. He has also represented clients as an expert witness in Administrative Hearings where water quality, structure impacts, waterway capacity/safety and/or environmental concerns were at issue. Mr. Tim Mason, P.E. Mr. Mason has been with ATM for 12 years and serves as the Marina Team Leader. A professional engineer in several states, the Bahamas, and USVI, Mr. Mason plays a key role in the engineering feasibility, design, and construction of many projects. With an M.S. degree in Coastal and Oceanographic Engineering, Mr. Mason focuses on waterfront structures and environmental factors affecting floating docks, breakwaters and shoreline stabilization structures. Mr. Kirby Marshall, MBA Mr. Marshall is a Marina Construction Specialist with ATM. He holds a B.S. in Construction Management from the University of North Florida and an MBA from The Citadel. He has several years experience in marina and waterfront development across the US and abroad. Mr. Marshall is involved in many aspects of marina development including: facility planning, marina market and economic feasibility, regulatory permitting, engineering design, bidding/negotiation, and construction administration. Mr. Marshall would work closely with Mr. Petrella on all aspects of this feasibility study. Ms. Michelle Mireault, MBA Ms. Mireault holds a BA in Business Administration from Lakeland College, an MBA from The Citadel, and a Master of Economics degree from Iowa State University and is currently employed by A TM as a Marina Business Specialist. She has significant experience in marina market research and analysis. Her extensive background in economics allows her to bring in-depth perspective to marina economic feasibility work. Ms. Mireault has recently completed work on several marina economic feasibility analyses for projects in the US and abroad, including a 20-year pro forma economic analysis for a proposed marina facility in the British Virgin Islands. Ms. Mireault would facilitate the Marina Market Assessment and Economic Pro Forma development for this project. Mr. Pete Peterson, M.S., P.E. Mr. Peterson holds a Master's Degree in Ocean Engineering from the Florida Institute of Technology. He is a Senior Coastal Engineer with A TM and has worked on and served as the Engineer of Record for several marina and boat ramp projects throughout the U.S., responsible for all permitting, planning, design and construction. He completed an award winning marine facility siting study for St. Johns County, FL and developed a Master Plan for all of the City of Jacksonville's public boat ramps. Mr. Peterson would assist on the Marina Market Assessment and review of construction costs for this project. Mr. Tim Timpson, CMM Mr. Timpson is the former director of the International Marina Institute and is largely responsible for the successful implementation of its Certified Marina Manager (CMM) program. A former marina operator in South Florida, Mr. Timpson works closely with A TM on marina projects worldwide, specifically with regard to marina planning and operations. Mr. Timpson will provide input on this project with regard to review of operational cost estimates as provided by Wade- Trim. 3 ~ SIMILAR PROJECTS A TM's Marina and Waterfront Development Division is uniquely qualified to assist the City of Clearwater with this marina feasibility study. We have extensive experience working with municipalities on a variety of marina/waterfront projects, including market and economic feasibility work. Recent, similar marina feasibility work includes, but is not limited to: ill City of Palatka, (FL) - Marina market assessment, economic pro forma analysis, project planning/conceptual design, funding alternatives, presentation and report of plans to City Commission :11 Laishley Park Marina, City of Punta Gorda (FL) - Boating market assessment, marina economic pro forma analysis, regulatory permitting, engineering design II Town of Lake Park Marina (FL) - Marina economic pro forma analysis, engineering design, construction administration II Dolphin Reef Marina (FL) - Marina market assessment, engineering feasibility II Marina Feasibility, Carrabelle (FL) - Marina market assessment, conceptual engineering & concept design/refinement, Regulatory feasibility, marine park feasibility research/planning meetings, coordination, and interim workshop II Halifax Harbor Marina, City of Daytona Beach (FL) - Design charette session; engineering feasibility, market study, development of conceptual layout, regulatory feasibility, estimate of probable construction cost and expected returns, regulatory permitting, development of a pro forma/capital budgeting tool, and assistance with development of a Boating Infrastructure Grant Program application !II Ft. Pierce Marina, (FL) - Comprehensive feasibility study, market assessment, regulatory permitting, design, and bidding III Fernandina Harbor Marina (FL) - Market study, financial analysis, re-design of facility, expansion analysis and alternatives design, environmental Investigations and analyses, regulatory permitting, planning and design alternatives workshops, bid documents and specifications for sediment barrier removal .. Town of Palm Beach Docks (FL) - Feasibility assessment, dock expansion, parking, support services II Bayou Chico, Pensacola (FL) - Feasibility study, timetable estimate, market assessment of area rates and amenities, site assessment and evaluation 4 ~ . Riviera Beach Inlet Harbor Marina (FL) - feasibility of basin and slip count expansion, develop preliminary plans, input for presentation . Indian River Inlet Marina (State of Delaware, Division of Parks and Recreation) - economic pro forma analysis (review only), engineering design, construction administration ;I Corpus Christi Marina (TX) - Marina market assessment, economic pro forma analysis, engineering feasibility, project planning, conceptual design, regulatory feasibility ill Marina at the Pamlico (NC) - Marina market assessment .. Washington, NC Drystack Marina - Marina market assessment ,. Private Client - Marina (BVI) - Marina market assessment, 20-year economic pro forma analysis, project planning .11 Yacht Haven Grande (USVI) - Marina market study, engineering design, construction administration II Fairmont Hotel Marina (Bermuda) - Marina market survey, economic pro forma analysis r. Harbor Station Marina (VA) - Marina market assessment, economic pro forma analysis, conceptual marina design, project planning II Palmetto Bluff (Big House Landing Marina) (SC) - Economic pro forma analysis, project planning, regulatory permitting .. Owensboro Marina at English Park (KY) - Marina feasibility and siting studies, economic forecasting, master plan, market assessment, pre-lease program, community consensus building . Myrtle Beach Marina Feasibility (SC) - Study feasibility of marina development at three locations, site assessment, layout alternatives, regulatory permittin~J issues II Canton Crossing, Baltimore (MD) - Feasibility study for capacity, slip mix, boater expectations, potential revenue, market demand, boater uses and environmental forces affecting the facility, financial performance analysis using 1 O-yr projection model 5 ~ MUNICIPAL CLIENT REFERENCES Town of Lake Park, Florida Attn.: Mr. Paul Carlisle (561) 881-3345 ATM Project: Redevelopment of Lake Park Marina (including economic pro forma analysis) City of Palatka, Florida Attn.: Mrs. Cathy Butler (386) 329-0195 A TM Project: Palatka Riverfront Master Plan (preliminary feasibility including market and economic analysis, master planning, environmental studies) Charleston County Park and Recreation Commission Attn.: Mr. Ross Eastwood Mr. Jeff Schryver (843) 762-2172 ATM Project: Addition of transient boating facilities at the Cooper River Marina in Charleston, SC. This is a "BIG pOl funded project. Department of Natural Resources and Environmental Control, Division of Parks and Recreation Attn.: Mr. Britt Murray Mr. Phil Gallo (302) 739-5284 ATM Project: Redevelopment of the Indian River Inlet Marina at the Delaware Seashore State Park (Including economic pro forma analysis input review) 6 AfFM SCOPE OF PROPOSED MARINA CONSULTING SERVICES Introduction Applied Technology and Management, Inc. (A TM) has prepared this proposal to assist The City of Clearwater, Florida in the evaluation of a marina concept in Downtown Clearwater adjacent to Coachman Park and Memorial Causeway. This scope sets forth our approach to developing a marina plan that considers the various aspects of the tasks set forth in the City's Request for Qualification. ATM briefly discussed the development project with Mr. Bill Morris, Marine and Aviation Director of Clearwater and has a basic understanding of the City's goals. Over the past 20 years, we have developed a proven, integrated approach for marina market and financial feasibility analyses to facilitate marina development. The approach integrates a marina market study and financial pro forma projection analyses to develop and ensure a profitable and marketable conceptual design. The marina design should consider carefully the boating market segments and the relationships with the overall project, so as to strategically promote common interests and maximize the revenue of the marina profit center. The enclosed work plan concentrates on defining the target marina market segments and assessing the economic projections for an optimized marina concept, with recommendations to be made to the City via two public meetings. Specific objectives are: . Research the area marina market including capacity, absorption, slip mix, boater expectations, and potential revenue centers. Determine demand for excursions and potential as a coastal cruising destination. . Review Owner/Engineer-provided construction and operational cost estimates for reasonableness and completeness . Perform a financial performance analysis using ATM's proprietary :20-yr projection model. This model includes marina capital cost estimates (to be provided by Wade-Trim), phasing, absorption, multiple revenue centers, project specific financing (debt service) information and tailored expense projections benchmarked to area industry values and modeled occupancy and absorption assumptions. It will also be used to optimize the design and phasing to meet the City's performance goals. The results of our work under the described tasks will be transmitted in a succinct, graphical report with applicable drawings, figures, and other supporting documentation for each objective area and presented at two public meetings to be held in Clearwater during July of 2006. TASK I: MARINA MARKET ASSESSMENT ATM will conduct a preliminary desktop marina market data gathering effort using information from our in-house databases, cruising guides, internet sources, and Owner-supplied information. We will be particularly interested in Owner identification of one or two 'benchmark" facilities for the planned development even if they are not in the immediate project area. What 7 IW we are most interested in is a physical, functional and successful example of a waterfront residential development with a marina that fits the Owner's vision for the property. A TM will also specify benchmark communities that we have evaluated in prior efforts and compile pertinent market data where appropriate. While these are not located in the regional market, insight into slip taker percentages, sales approaches, relationships to amenities will be insightful for capacity/user need planning. We will also investigate the procurement of boater registration and boat sales data for the primary and secondary market areas defined by the Owner and through ATM interviews with area marinas. Upon completion of this preliminary effort, A TM will send two professionals to the Clearwater area to visit area marina facilities and benchmarks and perform facility assessments, gather physical marina data, ground-truth information obtained through secondary sources, and conduct interviews with marina staff, boaters, boat dealers, marina/resort operators and repair facilities to determine boating trends, boater expectations, and a general overall feel for the area market. The visit will also provide A TM researchers with a critical understanding of potential market segments for a new marina facility at the property. The market assessment refinement includes the analysis of the boating market segments, demand characteristics, and trends for the region. Specific Elements of the Marina Market Assessment will include: . Assessment of comparable regional marinas to include identification of the target market areas and details such as boat sizes, slip mix, boat use patterns, amenities, support facilities, dockage rates, etc. as they relate to potential new facility. . A TM professionals will travel to the area to interview representative local boaters, marina managers, and boat dealers, and other pertinent local contacts. As part of this trip, we will visit key marinas in the region to evaluate existing marina facilities, offerings, shortfalls and boater characteristics. This data will be cataloged in photographic cut sheets. . Prepare a dockage rate matrix for regional facilities and destinations ttlat identifies general rate structure driving forces. . Determine extended regional patterns and tendencies to the amount practicable: long term lease percentages; transient nights and percentages; potential for tour, charter/excursion, and rental boats; required and recommended amenities; potential as a destination attraction, etc. . Review cruising guide and tourism information and determine trends with regard to travel seasons, recreational traffic components, and direction trends. . Provide overview of anticipated user profile (needs of the prospective boater with regard to berthing, seasonal use, and support services): vessel types, transient characteristics, utility requirements including electrical, water supply, CATV and phone and general amenity expectations. 8 ~ . Forecast boating demand by market segment (e.g. local boaters, charters/commercial, residential, transients, etc.). . Consider special needs of potential boaters such as charter boats, transient vessels, and megayachts The deliverable of this task will be a summary, graphical report of findings and recommendations. TASK 2: REVIEW OF CONSTRUCTION COST ESTIMATES ATM understands that the Owner's Wade Trim has been hired as the Engineer of Record for the downtown boat slip project. As such, ATM further understands that Wade Trim has developed a construction cost estimate for the development of the proposed marina. This cost estimate will be critical in the development of accurate financial analyses for the proposed project. ATM has significant, current experience in marina design and construction projects in Florida, the US, and globally. ATM will review the construction cost estimate provided by Wade Trim to determine reasonableness and completeness and offer general suggestions for revision, if deemed necessary by ATM. This effort shall not include any new cost estimating, quantity take-offs, or comparative materials cost analysis. The deliverable of this task will be a summary memorandum of findings and recommendations. TASK 3: REVIEW OF OPERATIONAL COST ESTIMATES ATM understands that the Engineer of Record, Wade Trim, has also developed operational cost estimates for the proposed marina. This operational cost estimate will also provide critical input for pro forma analysis of the proposed marina facility. A TM has in-depth knowledge of marina operations requirements and costs and has provided input related to such to public and private clients worldwide. A TM will review the operational cost estimate provided by Wade Trim to determine reasonableness and completeness and offer general suggestions for revision, if deemed necessary by ATM. This effort shall not include any new cost estimating, operational planning, or external marina management vs. City operations analyses. This work, if desired by the City may be performed as additional services.. The deliverable of this task will be a summary memorandum of findings and recommendations. TASK 4: ECONOMIC PRO FORMA ANALYSIS In this task, ATM will adapt our proprietary economic pro forma model to the selected conceptual marina plan and market inputs derived above. The refined cost estimates (including hard and soft costs*), slip absorption rates, slip lease rates, and user categories determined in earlier tasks will provide input into the pro forma. Additionally, operational financing* (debt 9 ~ service) information will be tailored to the proposed marina resulting in a clear understanding of phased capital outlay and return on investment for a 20-year period. A capital replacement fund (sinking fund) will also be included in the analysis to ensure replacement funds for marina facilities at the end of anticipated useful life. In conjunction with the development team, A TM will evaluate various input combinations in an effort to clearly comprehend the economic performance and sensitivity of the marina element and its impact on the development. As one can expect, marina developments have numerous unique expense items that must be included to ensure a realistic projection of economic viability and appropriate cost assignment. Within the pro forma analysis, ATM will: . Determine distribution of costs, revenues, phasing plans, absorption range impacts, amenities and profit ratios. . Provide the following ATM standard Schedules for development team review: Income and Operating Summary (including projected IRR, cash flows, cost of capital, operating revenue, and operating expenses*), Marina Income Statement, and detailed breakdown of major marina revenue profit centers. . Obtain Owner feedback and incorporate recommendations into the model. . Consult with Owner in regard to capitalization (specifics of anticipated financing, pay back period required, required annual cash flows, internal rate of return expectations, etc.). . Apply the tool iteratively for one modification of the conceptual plan. Model will be available for further "what-if" scenarios, layout modifications, or phasing alternatives, if requested as Additional Services. . Present pro forma results to the development team via teleconference. . Recommend preliminary phasing alternatives to Owner based on pro forma. The deliverable of this task will be a summary, graphical report with appropriate spreadsheet data. *Owner to provide final input recommendations for marina cost estimate, marina operational estimate, and marina financing terms. ATM will coordinate with project team on the development of such as described above (Tasks 2-4). 10 ~ TASK 5: ATTEND TWO COUNCIL MEETINGS IN JULY 2006 This task provides a budget for one ATM marina professional to attend two City Council/Public meetings in Clearwater, Florida. The meetings are expected to be held on July 17, 2006 and July 20, 2006 at 1 :30p.m. and 6:00 p.m., respectively. TASK 6: ATTEND ADDITIONAL COUNCIL MEETINGS This task provides a budget for ATM representatives to attend additional City Council/Public meetings in Clearwater, Florida to discuss the financial feasibility of the proposed project. A TM assumes that one marina professional from our staff will attend each of these meetings. SUMMARY OF PROFESSIONAL LABOR FEES TASK Professional Fee 1. Marina Market Assessment $20,000 2. Review of Construction Cost Estimates $2,000 3. Review of Operational Cost Estimates $2,000 -- 4. Economic Pro Forma Analysis $17,500 -- 5. Attend Two Council Meetings I $5,000 I ! 6. Attend Additional Council Meetings i $1,500 EACH I --- Please note: the economic pro forma analysis effort described above will be built upon marina market assessment input, conceptual marina design and cost estimates, and project-specific operational and finance (debt service) expense projections. The output of the pro forma is only as accurate as the input parameters. The approach set forth in this scope of services identifies ATM's recommended course of action for this project based on the City's RFQ. It is likely that upon completion of Task 1 (Marina Market Assessment), some modifications of the current marina plan may be warranted to properly accommodate demand. Such modifications are beyond the scope identified herein. 11 ~ Request for Qualification Response Clearwater Downtown Boat Slips Feasibility Study Due Date - April 7th, 2006 Date: April 6, 2006 Name of Firm Responding: Applied Technology & lYIanagement, Inc. 2770 NW 43 Street, Suite B Gainesville, Fl 32606 (352) 375-8700 Fax: (352) 375-0995 Cost of each phase of work identified under tasks 1 thru 6 are as follows: 1. $ 2. $ 3. $ 4. $ 5. $ $20,000 $2,000 $2,000 $17,500 $5,000 Market analysis Review of Construction Costs Review of Operational Costs Financial Feasibility covering 20 yrs Attend two council meetings in July 2006 Total 1-5 $ 46,500 6. $ 1,500 EACH Cost to attend each additional meeting Email toMarqie.Simmons@mvclearwater.com 12 ~