HomeMy WebLinkAboutCORONA RESEARCH - CONTRACT - RFP - P968 ECONOMIC AND MARKET STUDY 21834PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into the day and year set forth below, by and
between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter
referred to as the "City" and Corona Research, Inc., hereinafter referred to as "Professional'.
WITNESSETH:
In consideration of the mutual covenants and obligations herein expressed, it is agreed
by and between the parties hereto as follows:
1. Scope of Services. The Professional agrees to provide services in accordance
with the scope of services attached hereto as Exhibit "A", consisting of four (4) pages, and
incorporated herein by this reference.
2. The Work Schedule. The services to be performed pursuant to this Agreement
shall be performed in accordance with the Work Schedule attached hereto as Exhibit "B",
consisting of one (1) page, and incorporated herein by this reference.
3. Time of Commencement and Completion of Services. The services to be
performed pursuant to this Agreement shall be initiated immediately following execution of this
Agreement. Services shall be completed no later than February 18, 2005. Time is of the
essence. Any extensions of the time limit set forth above must be agreed upon in writing by the
parties hereto.
4. Early Termination by City. Notwithstanding the time periods contained herein,
the City may terminate this Agreement at any time without cause by providing written notice of
termination to the Professional. Such notice shall be delivered at least fifteen (15) days prior to
the termination date contained in said notice unless otherwise agreed in writing by the parties.
All notices provided under this Agreement shall be effective when mailed, postage prepaid and
sent to the following addresses:
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EXHIBIT "B"
It is our understanding that the project needs to be completed by February 1 e, 2005. This
represents an aggressive schedule, but Corona can accomplish it as long as we have a contract in
place and/or formal authorization to proceed no later than January 18''. The most time -sensitive
element of the project is the survey, which is a labor-intensive and time -intensive process.
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Professional: City: With Copy to:
Corona Research, Inc. City of Fort Collins, Purchasing City of Fort Collins, City Hall
Attn: Kevin Raines PO Box 580 Attn: Tess Heffernan
1630 Welton St Ste 525 Fort Collins, CO 80522 300 La Porte Ave.
Denver, CO 80202 Fort Collins, CO 80521
In the event of any such early termination by the City, the Professional shall be paid for services
rendered prior to the date of termination, subject only to the satisfactory performance of the
Professional's obligations under this Agreement. Such payment shall be the Professional's sole
right and remedy for such termination.
5. Design, Project Indemnity and Insurance Responsibility. The Professional shall
be responsible for the professional quality, technical accuracy, timely completion and the
coordination of all services rendered by the Professional, including but not limited to designs,
plans, reports, specifications, and drawings and shall, without additional compensation,
promptly remedy and correct any errors, omissions, or other deficiencies. The Professional
shall indemnify, save and hold harmless the City, its officers and employees in accordance with
Colorado law, from all damages whatsoever claimed by third parties against the City; and for the
City's costs and reasonable attorneys fees, arising directly or indirectly out of the Professional's
negligent performance of any of the services furnished under this Agreement. The Professional
shall maintain commercial general liability insurance in the amount of $500,000 combined single
limits, and errors and omissions insurance in the amount of N/A
6. Compensation. In consideration of the services to be performed pursuant to this
Agreement, the City agrees to pay Professional on a time and reimbursable direct cost basis
according to the following schedule:
Hourly billing rates: Partner $140 Per Hour
Analyst $ 90 Per Hour
Reimbursable direct costs: as billed
with maximum compensation (for both Professional's time and reimbursable direct costs) not to
exceed Thirty Six Thousand Eight Hundred Seventy Dollars ($36,870). Monthly partial
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payments based upon the Professional's billings and itemized statements of reimbursable direct
costs are permissible. The amounts of all such partial payments shall be based upon the
Professional's City -verified progress in completing the services to be performed pursuant hereto
and upon the City's approval of the Professional's reimbursable direct costs. Final payment
shall be made following acceptance of the work by the City. Upon final payment, all designs,
plans, reports, specifications, drawings and other services rendered by the Professional shall
become the sole property of the City.
7. City Representative. The City will designate, prior to commencement of work, its
project representative who shall make, within the scope of his or her authority, all necessary and
proper decisions with reference to the project. All requests for contract interpretations, change
orders, and other clarification or instruction shall be directed to the City Representative.
8. Monthly Report. Commencing thirty (30) days after the date of execution of this
Agreement and every thirty (30) days thereafter, Professional is required to provide the City
Representative with a written report of the status of the work with respect to the Scope of
Services, Work Schedule, and other material information. Failure to provide any required
monthly report may, at the option of the City, suspend the processing of any partial payment
request.
9. Independent Contractor. The services to be performed by Professional are those
of an independent contractor and not of an employee of the City of Fort Collins. The City shall
not be responsible for withholding any portion of Professional's compensation hereunder for the
payment of FICA, Workers' Compensation, other taxes or benefits or for any other purpose.
10. Personal Services. It is understood that the City enters into this Agreement
based on the special abilities of the Professional and that this Agreement shall be considered as
an agreement for personal services. Accordingly, the Professional shall neither assign any
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responsibilities nor delegate any duties arising under this Agreement without the prior written
consent of the City.
11. Acceptance Not Waiver. The City's approval of drawings, designs, plans,
specifications, reports, and incidental work or materials furnished hereunder shall not in any way
relieve the Professional of responsibility for the quality or technical accuracy of the work. The
City's approval or acceptance of, or payment for, any of the services shall not be construed to
operate as a waiver of any rights or benefits provided to the City under this Agreement.
12. Default. Each and every term and condition hereof shall be deemed to be a
material element of this Agreement. In the event either party should fail or refuse to perform
according to the terms of this agreement, such party may be declared in default.
13. Remedies. In the event a party has been declared in default, such defaulting
party shall be allowed a period of ten (10) days within which to cure said default. In the event
the default remains uncorrected, the party declaring default may elect to (a) terminate the
Agreement and seek damages; (b) treat the Agreement as continuing and require specific
performance; or (c) avail himself of any other remedy at law or equity. If the non -defaulting
party commences legal or equitable actions against the defaulting party, the defaulting party
shall be liable to the non -defaulting party for the non -defaulting parry's reasonable attorney fees
and costs incurred because of the default.
14. Bindino Effect. This writing, together with the exhibits hereto, constitutes the
entire agreement between the parties and shall be binding upon said parties, their officers,
employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs,
personal representatives, successors and assigns of said parties.
15. Law/Severability. The laws of the State of Colorado shall govern the
construction, interpretation, execution and enforcement of this Agreement. In the event any
provision of this Agreement shall be held invalid or unenforceable by any court of competent
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jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this
Agreement.
THE CITY OF FORT COLLINS, COLORADO
c
By: 4?,
J es B. O'Neill II, CPPO, FNIGP
Dire r,�f Purchasing & Risk Management
DATE: Z 2 L fC7 .S
Corona Research, Inc.
Title: I RFSr`.DrN %
CORPORATE PRESIDENT OR VICE PRESIDENT
Date: 04ZZL0 5
ATTEST:
(Corporate Seal)
Corporate Secretary
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EXHIBIT "A"
This revised proposal documents the revised work scope and budget for the project, and confirms
the project schedule. We do not reiterate our qualifications and firm background, which is available
in our original proposal.
Project Work Scope
The project work scope will encompass three "task groups," each of which addresses one or more
significant research questions.
Task Group 1. Documentation and Measurement of Current Situation
This task group answers the question:
How many tenants are currently in violation of this ordinance and thus would be required to find
alternative housing?"
Does the ratio of owner -occupied single family homes to renter -occupied single family homes in a
neighborhood have an impact on property values? If so, what is the impact? Provide examples
specific to Fort Collins.
Corona will undertake the following steps to estimate the numbers of current violators. Strengths
and weaknesses of each approach are discussed in our original proposal.
Corona will develop estimates based on the following activities:
1. Corona will conduct a public survey of 400 households in the City. We will determine with
the City whether specific subareas will be surveyed or whether the entire city will included in
the survey. We will also discuss whether to conduct the survey only among residents of
single-family homes or of all residents.
2. Corona will participate in a meeting with the local Water Utility to discuss the potential use
of water records as an estimator of overcrowded housing. If appropriate, and if the City and
Utility provide databases of household water usage and assessor records, Corona will
combine the databases and prepare an estimate of unrelated household ordinance violations
in the City.
3. Corona will examine Census PUMS data to develop citywide profiles of and estimates of
households that are in violation of the unrelated household ordinance.
4. Corona will develop a general descriptive model to examine patterns between home values
for a variety of geographic areas versus the relative proportions of single-family owned
homes versus rentals. We will control for selected other value indicators such as the age of
the housing and the average size, though this represents an inherent and unavoidable
challenge to the study — some variables such as age of housing will correlate highly with the
presence of single-family rentals (i.e., these rentals are inherently more common in older
neighborhoods). This correlation can obscure the relationship between property values and
the presence of single-family rentals. Corona will attempt to separate out these effects by
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controlling for housing stock age, but it will likely not be possible to completely eliminate
this crossover effect. Once the general model and relationships are developed, we will then
superimpose various Fort Collins neighborhoods onto the analysis at a Block Group level to
determine if similar patterns exist in Fort Collins.
The following tasks have been deleted from our original proposal.
1. Corona will not map complaints to the city. Based on our discussion, the number of
complaints may not represent the extent of the problem, and the City has already examined
patterns in these data.
2. Corona will develop citywide estimates rather than neighborhood estimates. These data will
serve as a foundation for a future model to estimate violators on a neighborhood level if the
City latex deems it to be necessary.
3. As agreed in the meeting, the survey will be cut to a five-minute length rather than ten
minutes, as proposed in the initial proposal.
Tack Grvup 2. Impact Assessment of Ordinance Enfotrement on Current Situation
This task group answers the following questions:
What will be the impact on tenants of a strict enforcement of the "no more than 3-unrelated"
ordinance?
Would vacancies accommodate these displaced tenants currently?
Will there be a change in the average cost to rent housing?
Will the number of single-family rental homes increase or decline? (Or, will the number of owner -
occupied homes increase or decline?) If the answer to "a" (above) is yes, where will these changes
most likely occur?
What will be the impact on single family neighborhoods of a strict enforcement of the "no more
than 3-unrelated" ordinance?
Corona will prepare an impact model to answer the above questions, as described in our original
proposal.
The following tasks have been deleted from our original proposal.
1. Corona will not conduct the independent analysis of problem property impact on
neighborhood home values, as described in the original proposal.
2. Corona will develop citywide estimates rather than neighborhood estimates. These data will
serve as a foundation for a future model to estimate violators on a neighborhood level if the
City later deems it to be necessary.
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Task Group 3. Scenario Analysis of Future Rental Environment
This task group answers the following questions:
Would vacancies accommodate these displaced tenants five years from now? Ten years from now?
How will property values be affected five years from now? Ten years from now?
How will the Fort Collins housing market be affected by the Colorado State University strategy to
increase enrollment by 5,000 students in the next 5 —10 years, including proportional increases in
faculty and staff?
This task will differ significantly from the activities proposed in the original proposal. Instead of
developing a model to predict potential impacts of the ordinance (and university growth) on future
vacancy rates, pricing, and property values, Corona will conduct a two -pronged analysis:
1. Corona will prepare a qualitative discussion of the market reverberations that are caused
by one-time impacts such as the ordinance enforcement, as well as impacts of continued
growth in a particular market segment such as college students.
2. Corona will identify and examine case studies of growth among submarkets in other
communities, and will gather and report quantitative information on changes in vacancy
rates, rental rates, and property values in those communities.
As part of our work scope, Corona will provide the following.
1. Estimates of the number of ordinance violators in the city, and to the extent that
sufficient data are available, profiles of those violators.
2. An analysis of the relationship between home values and the presence of single-family
rentals in neighborhoods.
3. Other relevant findings from a public survey.
4. An impact analysis (and model) of the impact of ordinance enforcement on vacancy
rates, rental prices, and single-family home rentals.
5. A qualitative discussion of the market reverberations that are caused by one-time
impacts such as the ordinance enforcement, as well as impacts of continued growth in a
particular market segment such as college students.
6. Case studies of the impacts of growth of particular market segments in other cities on
rental costs, vacancy rates, and property values.
7. A report describing all methodologies, assumptions, analyses, findings, and conclusions.
As requested, we will also attend one City Council working session to introduce the study and
discuss any issues of concern with the Council and City staff.
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The following table describes Corona's budget for the project. This includes a discount to respect
the City's allotted budget for the project.
140 90
Partner Analyst
Total $38,460
One -Time Discount-$1,590
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