REPORT TO MAYOR AND COUNCIL TO THE HONORABLE MAYOR

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REPORT TO MAYOR AND COUNCIL

TO THE HONORABLE MAYOR AND COUNCIL:

DATE: July 27, 2009

SUBJECT:

APPROVE A CONTRACT WITH STRATEGIC ADVISORY GROUP OF DULUTH, GEORGIA TO EVALUATE THE CITY’S OPTIONS AND DEVELOP A LONGTERM STRATEGY FOR THE CITY-OWNED SLEEP TRAIN PAVILION FOR A FIXED PRICE CONTRACT OF $89,000 AND AUTHORIZE THE TRANSFER OF $40,000 DESIGNATED FOR PAVILION SUPPORT IN THE CITY’S CIP BUDGET (PROJECT 2118) INTO THE GENERAL FUND OPERATIONS BUDGET

Report in Brief On May 26, 2009 the City issued a Request for Proposals (RFP) to hire a consulting firm to work with the City Council and staff, to lead the Council through a process of defining a long-term strategy for the Pavilion that maximizes its benefits to the City and eliminates, or at least minimizes, the impact the Pavilion has on the City’s General Fund. Four firms responded to the RFP and the Council interviewed all four firms at a public meeting on June 29, 2009. Council referred selection of one preferred firm to the Policy Development & Internal Operations Council Committee. The Committee and staff are recommending that Strategic Advisory Group, of Duluth, Georgia, be selected as the preferred consultant for a not-to-exceed contract of $89,000 plus travel costs, which are charged as actual expenses but capped at $15,000. Additionally, the contract establishes a $16,000 contingency fund for this project creating a total project budget of $120,000. Adequate funds for the project exist within the City’s adopted budget within the operating fund for the Pavilion and CIP Pavilion Project 2118. To facilitate ease of administering the contract, Council is being requested to authorize the transfer of $40,000 from the CIP Pavilion budget (Project 2118) into the General Fund operating budget. Background The City issued a Request for Proposals titled “Sleep Train Pavilion—Development & Implementation of Long Term Options” on May 26, 2009. All proposals were due by Friday, June 19, 2009. The City received proposals from four firms: Strategic Advisory Group, C.H. Johnson Consulting, Webb Management, and AMS Planning & Research. All four firms were interviewed by the City Council at a public meeting on June 29, 2009. The Council narrowed the choices down to AMS Planning & Research and Strategic Advisory Group and asked that the Policy Development & Internal Operations Committee (Hoffmeister and Bjerke) further evaluate both firms and choose one firm to recommend to the full Council. Subsequently, staff sent follow-up questions to

APPROVE A CONTRACT WITH STRATEGIC ADVISORY GROUP OF DULUTH, GEORGIA TO EVALUATE THE CITY’S OPTIONS AND DEVELOP A LONGTERM STRATEGY FOR THE CITY-OWNED SLEEP TRAIN PAVILION FOR A FIXED PRICE CONTRACT OF $89,000 AND AUTHORIZE THE TRANSFER OF $40,000 DESIGNATED FOR PAVILION SUPPORT IN THE CITY’S CIP BUDGET (PROJECT 2118) INTO THE GENERAL FUND OPERATIONS BUDGET July 27, 2009 Page 2 of 3 both firms; their responses were reviewed by both Committee members and both Committee members are recommending to the full Council that Strategic Advisory Group (SAG) be hired to complete this contract. Discussion The proposed professional services agreement for SAG is attached as Attachment 1 to this staff report and includes a detailed scope of work (Exhibit A). SAG’s scope of work is described in general terms below. SAG will perform the following: • • • • • • • • Work with the Council, staff and key stakeholders to define the City’s goals for the Sleep Train Pavilion, Evaluate the 2008 and the 2009 concert seasons, Evaluate potential changes to the Pavilion operations, debt and financing, Evaluate potential changes to other related pavilion contracts (i.e., Aramark), Analyze the Pavilion within the context of competing Bay Area venues and national market trends for outdoor amphitheaters, Develop options for the Pavilion’s future that include, but are not limited to, ownership and operations options, Evaluate defined options against the Council’s goals and the Pavilion’s specific market, opportunities, and burdens, Help Council select a preferred option for the Pavilion’s future.

The scope of work would be accomplished over the next four months, completed by the end of November 2009. Live Nation’s current contract to operate the Pavilion extends until December 2010, allowing one full year for the City to implement a preferred option. The contract has a total cost of $120,000, which includes the fixed fee cost for services of $89,000, a maximum of $15,000 for travel expenses (which are charged at SAG’s cost), and a $16,000 contingency. Fiscal Impact The Pavilion represents an on-going $1.8 Million debt for the City’s General Fund until year 2020. In recent years, the Pavilion operator’s payment to the City has not been sufficient to cover the debt payment, which has impacted the General Fund. For the current year, the impact to the General Fund will be in the range of $430,000 despite an additional ticket surcharge that the Operator is collecting on behalf of the City. Consequently defining a future which minimizes the risk posed by this debt obligation is of critical importance to the long term fiscal security of the City.

APPROVE A CONTRACT WITH STRATEGIC ADVISORY GROUP OF DULUTH, GEORGIA TO EVALUATE THE CITY’S OPTIONS AND DEVELOP A LONGTERM STRATEGY FOR THE CITY-OWNED SLEEP TRAIN PAVILION FOR A FIXED PRICE CONTRACT OF $89,000 AND AUTHORIZE THE TRANSFER OF $40,000 DESIGNATED FOR PAVILION SUPPORT IN THE CITY’S CIP BUDGET (PROJECT 2118) INTO THE GENERAL FUND OPERATIONS BUDGET July 27, 2009 Page 3 of 3

There are adequate funds within the current adopted City budget already identified to support this study, although $40,000 must be transferred from CIP Project 2118 to general fund operations account 10016001Z01-63158. Public Contact Live Nation has been made aware of this project and the item has been noticed as part of the regular agenda process. Alternative Courses of Action Council may choose to modify the scope of the contract. Council Committee Recommendation The Policy Development & Internal Operations Council Committee members support approval of this contract with Strategic Advisory Group. Recommendation for Action Approve a Professional Services Agreement with Strategic Advisory Group of Duluth, Georgia, in the amount of $120,000 to evaluate the City’s options and develop a long-term strategy for the City-owned Sleep Train Pavilion, authorize the transfer of $40,000 from CIP Project 2118 into the City’s General Fund operations budget, and authorize the City Manager to execute the agreement.

Daniel E. Keen City Manager Dan.Keen@ci.concord.ca.us

Prepared by:

Valerie Barone Assistant City Manager Valerie.Barone@ci.concord.ca.us

Attachment 1 – Proposed Agreement for Professional Services Exhibit A – Scope of Services Exhibit B – Strategic Advisory Group Qualifications

AGREEMENT FOR PROFESSIONAL SERVICES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Attachment # 1

THIS AGREEMENT ("Agreement") is entered into on July 27, 2009 between the City of Concord (the "CITY") and Strategic Advisory Group, 3484 St. Annes Court, Suite 300, Duluth Georgia, 30096 (the “CONSULTANT”). THE PARTIES ENTER THIS AGREEMENT based upon the following facts, understandings and intentions: The CITY desires to contract with Strategic Advisory Group and Strategic Advisory Group to contract with the CITY for provision by Strategic Advisory Group to the CITY for professional services in connection with “Development and Selection of a Long-Term Option for the Sleep Train Pavilion,” as further described herein, upon the terms and conditions hereinafter set forth. NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises of the parties herein contained, the parties hereto agree as follows: 1. 2. Effective Date. The effective date of this Agreement is July 28, 2009 Services. CONSULTANT shall provide the basic services described in detail in

Exhibit A, Scope of Services, attached hereto and made a part hereof. 3. Amendment. If authorized, CONSULTANT shall furnish additional services, which are in

addition to the basic services. If additional services are requested by CITY, this Agreement may be amended, modified, or changed by the parties subject to mutual consent and in accordance with the Municipal Code by execution of an addendum by authorized representatives of both parties setting forth the additional scope of services to be performed, the performance time schedule, and the compensation for such services. 4. Authorized Representatives. Authorized representatives shall represent CITY and

CONSULTANT in all matters pertaining to the services to be ordered by CITY or rendered by CONSULTANT under this Agreement except where approval for the CITY is specifically required by the City Council. All requirements of CITY pertaining to the services to be rendered under this Agreement by CONSULTANT shall be submitted through these representatives and CITY shall cooperate with CONSULTANT in all matters relating to this Agreement in such a manner as will result in the performance of such work without delay. CITY’s authorized representative is authorized to execute on behalf of CITY, amendments to the agreement, including amendments providing for 1

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additional compensation to CONSULTANT, not to exceed $16,000, in addition to the base contract amount, throughout the remaining term of the agreement. The CITY authorized representative is Valerie Barone, Assistant City Manager of the City of Concord. The CONSULTANT authorized representative is Jeff Sachs, Managing Partner. 5. Compensation. CONSULTANT shall be compensated $89,000 on a fixed fee basis

for basic services rendered under Section 2, as more particularly described in Exhibit A, Compensation; and CONSULTANT shall be compensated for additional services rendered under Section 3, as more particularly described in a fully approved and executed addendum to this Agreement. CONSULTANT’s travel expenses shall be compensated independent of the fixed fee amount, not exceed $15,000.00 during the term of this Agreement and shall be supported by sufficient documentation to support the costs incurred by CONSULTANT. CONSULTANT may submit monthly statements for basic and additional services rendered. It is intended that payment to CONSULTANT will be made by CITY within (30) days of receipt of invoice. 6. Term. The term of this Agreement, subject to termination as set forth in Section 13,

shall be from the effective date through December 15, 2009. The CITY's Authorized Representative or City Manager may extend the term of the agreement for a period not to exceed twelve months if necessary for the CONSULTANT to complete the Scope of Work or any additional Scope of Work previously authorized by the CITY. Such Extension of time shall be in writing by a duly executed addendum or amendment to this agreement. 7. Standard of Performance. CONSULTANT represents to CITY that the services shall

be performed in an expeditious manner and with the degree of skill and care that is required by current, good, and sound procedures and practices. CONSULTANT further agrees that the services shall be in conformance with generally accepted professional standards prevailing at the time work is performed. 8. Performance by Consultant. CONSULTANT shall not employ other consultants or

contractors without the prior written approval of the CITY. CONSULTANT hereby designates the CONSULTANT’S representative as the person primarily responsible for the day-to-day performance 2

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of CONSULTANT'S work under this Agreement. CONSULTANT shall not change the CONSULTANT’S representative without the prior consent of the CITY. Unless otherwise expressly agreed by the CITY, CONSULTANT'S representative shall remain responsible for the quality and timeliness of performance of the services, notwithstanding any permitted or approved delegation hereunder. 9. Ownership and Maintenance of Documents. All documents furnished by

CONSULTANT pursuant to this Agreement are instruments of CONSULTANT’s services in respect to this project. They are not intended nor represented to be suitable for reuse by others on extensions of this project or on any other project. Any reuse without specific written verification and adoption by CONSULTANT for the specific purposes intended will be at user’s sole risk and without liability or legal exposure and expenses to CONSULTANT, including attorney’s fees arising out of such unauthorized reuse. CONSULTANT’s records, documents, calculations, and all other instruments of service pertaining to actual project shall be given to CITY at the completion of the project. The CITY reserves the right to specify the file format that electronic document deliverables are presented to the CITY. If agreement is terminated per Section 13, deliverables shall be provided based on Section 13 requirements. 10. Indemnification. CONSULTANT agrees to defend, indemnify and hold harmless the

CITY, its officers, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damages, injuries, and liability (including all attorney's fees and other litigation expenses) arising out of the negligent acts or omissions of CONSULTANT in the performance of this Agreement. 11. Insurance. CONSULTANT shall, at its own expense, procure and maintain in full

force at all times during the term of this Agreement the following insurance: A. Commercial General Liability Coverage. CONSULTANT shall maintain

commercial general liability insurance with limits of no less than one million dollars ($1,000,000) combined single limit per occurrence or two million dollars ($2,000,000) aggregate limit for bodily injury, personal injury, and property damage. 3

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B.

Automobile Liability Coverage. CONSULTANT shall maintain automobile liability

insurance covering all vehicles used in the performance of this Agreement providing a One Million Dollar ($1,000,000) combined single limit per occurrence for bodily injury, personal injury, and property damage. C. Professional Liability Coverage. CONSULTANT shall maintain professional

liability insurance with coverage for all negligent errors, acts or omissions committed by CONSULTANT, its agents and employees in the performance of this Agreement. The amount of this insurance shall be not less than five hundred thousand dollars ($500,000) on a claims made annual aggregate basis or a combined single limit per occurrence basis. D. Compliance with State Workers' Compensation Requirements. CONSULTANT

covenants that it will insure itself against liability for Workers' Compensation pursuant to the provisions of California Labor Code §3700, et seq. CONSULTANT shall, at all times, upon demand of the City Council and properly authorized agents, furnish proof that Workers' Compensation Insurance is being maintained by it in force and effect in accordance with the California Labor Code. E. Other Insurance Provisions. The policies are to contain, or be endorsed to contain

the following provisions: (1) CITY, its officers, agents, employees, and volunteers are to be covered

as additional insureds as respects: Liability arising out of activities performed by or on behalf of CONSULTANT and operations of CONSULTANT, premises owned, occupied, or used by CONSULTANT. The coverage shall contain no special limitations on the scope or protection afforded to CITY, its officers, officials, employees, or volunteers. (2) CONSULTANT'S insurance coverage shall be primary insurance with

respect to CITY, its officers, officials, employees, and volunteers. Any insurance, risk pooling arrangement, or self-insurance maintained by CITY, its officers, officials, employees, or volunteers shall be in excess of CONSULTANT'S insurance and shall not contribute with it. 4

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(3)

Any failure to comply with the reporting provisions of the policy shall

not affect the coverage provided to the CITY, its officers, officials, employees, or volunteers. (4) The aforementioned policies shall be issued by an insurance carrier

having a rating of Best A-7 or better which is satisfactory to the City Attorney and shall be delivered to CITY at the time of the execution of this Agreement or as provided below. In lieu of actual delivery of such policies, a Certificate issued by the insurance carrier showing such policy to be in force for the period covered by the Agreement may be delivered to CITY. Such policies and certificates shall be in a form approved by the City Attorney. Except for worker's compensation and professional liability insurance, the policies mentioned in this subsection shall name CITY as an additional insured and provide for thirty (30) days notice of cancellation to CITY. Said policies shall not be canceled earlier than, nor the amount of coverage reduced earlier than, thirty (30) days after the CITY receives notices from the insured of the intent of cancellation or reduction. Suspension of Work. CITY may, at any time, by ten (10) days’ written notice,

suspend further performance by CONSULTANT. All suspensions shall extend the time schedule for performance in a mutually satisfactory manner, and CONSULTANT shall be paid for services performed and reimbursable expenses incurred prior to the suspension date. During the period of suspension, CONSULTANT shall not receive any payment for services, or expenses, except for reasonable administration expenses, incurred by CONSULTANT by reason of such suspension. 13. Termination. CITY may terminate this Agreement for any reason upon ten (10) days

written notice to the other party. CITY may terminate the Agreement upon five (5) days written notice if CONSULTANT breaches this Agreement. In the event of termination, CONSULTANT shall promptly deliver to the CITY any reports or other written, recorded, photographic, or visual materials and other deliverables prepared for the CITY prior to the effective date of such termination. After receipt of deliverables, CITY will pay CONSULTANT for the services performed as of the effective date of the termination. 5

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14.

Compliance with Civil Rights.

During the performance of this contract,

CONSULTANT agrees as follows: A. Equal Employment Opportunity. In connection with the execution of this

Agreement, CONSULTANT shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, or national origin. Such actions shall include, but not be limited to, the following: employment, promotion, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of compensation; and selection for training including apprenticeship. B. Nondiscrimination Civil Rights Act of 1964. CONSULTANT will comply with all

federal regulations relative to nondiscrimination in federally assisted programs. C. Solicitations for Subcontractors including Procurement of Materials and

Equipment. In all solicitation, either by competitive bidding or negotiations, made by CONSULTANT for work to be performed under a subcontract including procurement of materials or leases of equipment, each potential subcontractor, supplier or lessor shall be notified by CONSULTANT of CONSULTANT’S obligation under this Agreement and the regulations relative to nondiscrimination on the grounds of race, religion, color, sex, or national origin. 15. Independent Contractor. In assuming and performing the services, CONSULTANT

is an independent contractor and shall not be eligible for any benefits, which the City may provide its employees, except as expressly provided for in the Agreement. All persons, if any, hired by CONSULTANT shall be employees or subcontractors of CONSULTANT and shall not be construed as employees or agents of the City in any respect. CONSULTANT shall have responsibility for and control over the means of providing services under this Agreement. 16. Compliance with Laws. CONSULTANT shall comply with all applicable Federal,

State of California, and local laws, rules, and regulations and shall obtain all applicable licenses and permits for the conduct of its business and the performance of the services. 17. Choice of Laws. This Agreement shall be construed and interpreted in accordance

with the laws of the State of California, excluding any choice of law rules which may direct the 6

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application of the laws of another jurisdiction. 18. Non-Waiver. The waiver by either party of any breach of any term, covenant, or

condition contained in the Agreement, or any default in their performance of any obligations under the Agreement shall not be deemed to be a waiver of any other breach or default of the same or any other term, covenant, condition, or obligation, nor shall any waiver of any incident of breach of default constitute a continuing waiver of same. 19. Enforceability. In the event that any of the provisions or portions of application of

any of the provisions of the Agreement are held to be illegal or invalid by a court of competent jurisdiction, CITY and CONSULTANT shall negotiate an equitable adjustment in the provisions of the Agreement with a view toward effecting the purpose of the Agreement. The illegality or invalidity of any of the provisions or portions of application of any of the provisions of the Agreement shall not affect the legality or enforceability of the remaining provisions or portions of application of any of the provisions of the Agreement. 20. Integration. The Agreement contains the entire agreement and understanding between

the parties as to the subject matter of this Agreement. It merges and supersedes all prior or contemporaneous agreements, commitments, representation, writings, and discussions between CONSULTANT and CITY, whether oral or written. 21. Successors and Assigns. CITY and CONSULTANT respectively, bind themselves,

their successors, assigns, and legal representatives. CONSULTANT shall not assign or transfer any interest in the Agreement without the CITY's prior written consent, which consent shall be in the CITY’s sole discretion. Any attempted assignment or transfer in breach of this provision shall be void. 22. Attorney’s Fees. If either party to this Agreement commences any legal action against

the other party arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and attorney's fees. 23. Financial Records. Records of CONSULTANT’s direct labor costs, payroll costs,

and reimbursable expenses pertaining to this project covered by this Agreement will be kept on a generally recognized accounting basis and made available to CITY if and when required. 7

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24.

Notices. All notices required hereunder shall be in writing and mailed postage prepaid

by Certified or Registered mail, return receipt requested, or by personal delivery to the CITY's address as shown below, or such other places as CITY or CONSULTANT may, from time to time, respectively, designate in a written notice given to the other. Notice shall be deemed received three (3) days after the date of the mailing thereof or upon personal delivery.

To CITY

Valerie Barone, Assistant City Manager City of Concord 1950 Parkside Drive Concord, CA 94519-2578 Phone: (925) 671-3461

To CONSULTANT

Jeff Sachs, Managing Partner Strategic Advisory Group 3484 St. Annes Court, Suite 300 Duluth, Georgia, 30096 Phone: (770)535-1070

IN WITNESS WHEREOF, the parties have executed this Agreement in one (1) or more 16 copies as of the date and year first written above. 17 18 CONSULTANT 19 20 21 22 23 24 25 26 27 28 City Attorney 8 City Clerk By:_________________________________ Name: Title: Address: Telephone: Jeff Sachs Managing Partner 3484 St. Annes Court, Suite 300 Duluth, Georgia, 30096 (770)535-1070 By:______________________________ Name: Title Address: Telephone: ATTEST: Dan Keen City Manager 1950 Parkside Drive Concord, CA 94519 (925) 671-3150 CITY OF CONCORD, a Municipal Corporation

APPROVED AS TO FORM:

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Date:______________________________, 200__

FINANCE DIRECTOR'S CERTIFICATION: Concord, California Date: _____________________________, 200__

I HEREBY CERTIFY THAT ADEQUATE FUNDS EXIST OR WILL BE RECEIVED DURING THE CURRENT FISCAL YEAR 2009/10 TO PAY THE ANTICIPATED EXPENSES TO BE INCURRED PURSUANT TO THIS CONTRACT. THE SUM OF $120,000. Account Code 10016001Z01-63158.

Finance Director's Signature 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 9

EXHIBIT A

SCOPE OF SERVICES For the SAG/City of Concord Agreement to Study Long-Term Options for the Future of the Pavilion – July 2009
August 12 – 13; September 14 Kick-Off Meetings - SAG will host a series of interviews and focus group meetings during the kickoff week and in a special council meeting tentatively scheduled for the 14th to solicit input on the project from City elected officials, staff and other stakeholders. SAG will also review existing data, including previous studies and other information related to the project. The purpose of this phase of the engagement is to enable the consultant to be more efficient in future analyses and to better understand stakeholder goals for prioritization, potential project constraints, political pressure that may be present and where opportunities might lie. The kickoff meetings are anticipated to occur over two separate sets of meetings. Initial meetings are preliminarily scheduled for August 12 – 13 and are anticipated to include City staff, including City Manager and Assistant City Manager; Finance Director, City finance team, bond counsel; Pavilion/Facilities Director; Concord Naval Weapons Station Reuse Project Director. Other meetings on these dates are likely to include a Pavilion tour and a meeting with Live Nation management. A kickoff meeting with City Council members is preliminarily scheduled for September 14 that may include the City Manager and Assistant City Manager, Finance Director, City finance team, other City staff members, and bond counsel. The purpose of the Council meeting will be to establish the City’s list of goals and guiding principles and to discuss potential Pavilion options. Other meetings may be scheduled, as needed, during this trip as well. An additional trip to Concord may be scheduled to conduct further research, however this potential trip is not currently scheduled. Facility Tours – SAG will tour competing facilities in the area and interview management during those tours. Before arranging them, SAG will discuss with City staff desired outcomes for these tours. Deliverables – After meeting with Council, a list of City goals and guiding principles. August 17 – October 16 Pavilion Performance Review and Forecast - SAG will prepare a programmatic and financial review of the 2008 season, and a financial forecast for the 2009 season. At a minimum, the analyses will include: • • • Review of area competing facilities Analysis of 2008 and 2009 performance data Meetings with Live Nation regarding 2008 and 2009 bookings and booking trends

• •

Analysis of secondary industry data Interviews with other competing and comparable facility managers, promoters, etc.

Evaluate Potential Changes to Pavilion Operations and/or Financing –SAG will analyze other potential changes related to the Pavilion, including operations, the Aramark concessions contract and the bond structure. SAG will pursue potential revisions to the Aramark contract and debt restructuring that could offer substantial savings to the City. Development and Analysis of Pavilion Options – Based on the previous brainstorming with the City and operations/bond analysis above, and other options that SAG will research and develop, a completed analysis of the various options available to the City from both a short term and long term perspective will be presented. Such options will include an analysis of future operating models, assuming continued ownership of the Pavilion by the City, as well as options that relieve the City of ongoing ownership or risk. SAG will work collaboratively with City staff throughout this analysis process. Through the collaborative process, some options may be found not feasible and may be dropped from further consideration. Deliverables – PowerPoint presentation encompassing the Pavilion Performance Review and Forecast, potential changes to Pavilion operations and/or financing, and Analysis of Pavilion Options. Weeks of October 19 – November 20 Meeting to Discern Meritorious Options - Once the major parameters of each option are prepared, SAG will meet and discuss the options with City staff. The findings of the 2008/2009 performance review will be an integral part of the discussions. The expected outcome from this meeting will be the creation of a “short list” of options for further analysis. Information on any options that have been dropped from further consideration will be identified and included in the final report along with the reasons it was dropped from further consideration. Thorough Analysis of Short List Options –SAG will further analyze the short listed options and prepare them for City presentation and consideration. Report Preparation – SAG will prepare the performance review and forecast as well as Pavilion options in the form of a written report. SAG will also refine the analyses and recommendations in PowerPoint form and prepare them for meetings with Council members. All such materials will be delivered to City staff in draft form in advance for review prior to finaling. Deliverables – A report summarizing the analyses and recommendations, encompassing the Pavilion Performance Review and Forecast, potential changes to Pavilion operations and/or financing, and Analysis of Pavilion Options and recommendations. Also, a PowerPoint presentation on the report and recommendations. Week of November 23 Meeting to Present and Discuss Analysis and Options – SAG will present to the City Council and the public the completed analyses and Pavilion options in PowerPoint form guided by the
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City’s financial and non-financial goals and guiding principles, and make recommendations on the “nest steps” in the process. Deliverables – Council Presentation Implementation: Continued work on the project to implement the preferred option will be subject to a separate agreement.

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StrategicAdvisoryGroup
Project Team
Our staffing approach to your project will be similar to our approach to every project. As SAG's Managing Partner, Jeff Sachs will serve as project executive and will ultimately be responsible for the completion and delivery of the project. Jerry McOendon and Marty McFarland wilt serve as co-project managers and will complete the analysis together. Mr. McClendon will serve os a primary point of contact. Other SAG partners will assist as their specific expertise is required to complete the analysis. Your project will be completed by senior level professionals, meaning the partners of SAG will be the individuals responsible for analyzing and interpreting data as well as forming conclusions and making recommendations.

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City of Concord
Je ff Sa chs
Projec t Ex ccu tjve

Je rry McC lendon
, Co-Pro ject M an a ger

Marty McFarland
Co - Pr oject Non a ger

Othe r Partner Support as Required

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The partners of SAG monitor on a bi-weekly basis the progress of all engagements. This ongoing practice allows for collaboration and input of all key personnel who may not have day-today responsibilities on a project. We have found this to be a critical element to our firm's successful track record of satisfied clients. In addition, before any deliverables (reports, presentations, etc.) are presented to a client, the partnership of SAG will discuss, debate, refine, and improve project deliverables long before a body of work becomes public.

Availability of Resources
SAG can and will commit the resources required to work intensively from July through October, and we will manage our work load to ensure so that the project team is available to effectively complete the engagement no matter its length or intensity. SAG serves only a small number of clients at anyone time and our priority on client service is the major reason for 0 ur firm's success. Mr. Sachs is currently overseeing four engagements, two of which require only minimal time. Mr. McFarl and and Mr. McClendon are assisting with the Franklin County hotel project, but their roles are limited. Both can devote the maJorIty of their time to the Pavilion project, Other SAG partner support can be available as needed. SAG prides itself in exceeding client expectations and we manage engagements and engagement personnel to achieve that goal. Project team resumes are presented on the following pages.

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Sleep Train Pavilion - Long Term Options

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StrategicAdvisoryGroup
Jeff Sachs
Managing Partner
Mr. Sachs is a founding partner of SAG with over 20 years of consultancy experience. Prior to forming SAG, Mr. Sachs held management and practice leadership positions with Ernst & Young and KPMG Peat Marwick. Mr. Sachs received his Master's and Bachelor's Degrees from The University of Iowa, and earned his certification for public accountancy. Representative Clients:
Event Facility Feasmility & Advisory EKperienc:e- Districtof Colurrbia Ballpark Study and linaree Plan for Relocation of the Expos; Districtof Coumbia Major League Soccer Stadhrn Study; O1crbtte Minor League 6asebal~ Cro"," Coliseum; Bi'ming.cm Daned Stadlun; Burl1ngton Arena; and New Jersey Pltlfessionel Soccer Stadiun, 2007 PanAmeri:en Games, Shrewport Arene and Hirs:h Coliseu"" and the 2004 Sunmer Olyrrpi: Games. Conference/Convention Center Feasibility & Adv50ry EKperience - Akltln Convention Center; Albert B. Sobn Convention Caner; Aurora ConYention Center (pltlpose d); Baltirrore Con..enlion Cener; Burlngton ~1lCI and Con-.ention Center (pltlpose d); O1arlotle Con--ention Cener; Cobb Galleria Centre; Crown Coliseum Complex; Expoland; Jacob Ja\'its Convention Center; .hIm B. Hynes Veterans Memorial Convention Center; Ir\'ing Convention Center; LowcomlTy Convention Center; M .e. Benton, Jr. Con--ention and Ori: Center; M::Corrnid< PICXJ!!; Miami Beoch Confererce Center; Myrtle Beam Con-.ention Center; Meydenba..er Convention Center; Navy Pier; Orlando/Orange County Conwntion Center;O-.erland Park Conwntion Cener; Prime F. Osborn Conwntion Center Expansion; Raleigh Con..ention/O\'ic Center; Riyacl1 Trade Mart and Con-ention Center;San Jose NcErery Convention Center; San Juan Convention Center; SchoumbJrg Conwntion Center (Pl':lposed); Shreveport Conwntion Center (proposed); St. louis Cervantes Con\lllntion Cener/Domed Stadium; Toronto Exhibition Pleee Trademart and Exhbit Hall; Wildwood Convention Center; Wlliamsburg Conwntion Center; and Wimingtm Con-.ention Center. Hotel Feasibility & Advisory Experienc:e -noel projects 1n Boston; Houston; Detroit, New Orleans; Myrtle Beach; Charlotle; Richardson; San Antonio; Tampa; Columbia; Virginia Beach; Schaumburg; Watlingbn DC; Portland; Bellevue; hing; Gary; Whston Salem; Raleigh; and Trenbn.

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Public: Finance Advisory & Transaction Due Diligence - San Juan Conwntion Center Hotel Tax Bonds; New Orleans Phase IV Tax Revenue Bonds; Trennn Marriott Conference Center ($30 nillion 63-20 bonds); Tampa Con-.ention Center !-btel ($125 millionin revenue bonds); Myrtle Beach Conwntion Center ($23 millon in Certfi:ates of Parti:ipation • COPs); me Charlotte Convention Canter ($100 mllion in COPs); me Cobb Galleria Cenler outside of Atlanta ($48 milion h rewnue bonds); Baltirrore Convention Center ($63 mllion in rewnue bonds); Crown Coliseum Complex ($S2 milion of COPs); and variau; facilites in Dade Comfy, Florida ($70 milian in re--enl.e bonds).
Developmlllt Project ~nagement Experience - 1,500·ltIOm Wailingbn DC Con--ention Cente r !-btel; Schaunburg Con-ention Cener and SOO-room Reneissarm Hotel dewbpment; San Jose M::mery Comention Center Expansion; Orlondo/Orenge County Conwntion Center Phase V Expansion; 700-room O1erlotte Convention Center Hotel; Irvng Convention Center and 450-room Hoel; 1,200 ItIOm Housbn Convention Center hotel; 400-ltIOm Myrtle Beach Conwntion Cener Hotel; Morehead Oty /Ca re ret County Conwntion Cene r; Wilmngnn Coll'f""tioo Center; Centennial Olympic Park. Strategic Pbnnng Experience - International Association of Convention and Visitor Bureau Three-Year Straegi: Plan; Pittsburgh Tourism & Conwntion Marketing Study; Orlando/Orange County Convention end Vilitor Bureau Three-Ye or Straegic Plan; My I I!:. !leu"'l JO'1"Uf V'Bulliry Pluu, Ollull<L/Olu l~ Cwuly e...hLilul UI\JeI 11l~1tl.1 solution; Massochusells Con--ention Cen1er Authority exhibitor order ilte met solution; Crown Coliseun Corrplex focility management software installation; Georgia Department of Tourj~ Stralegic Plan; Destination Charlotte Tourism Asset Inwstment Plan; O1arlotte Tourism Telk Fon::e Orgenizational Strl.Cture Assessment; O1arlotle Convention and Vis1brs Bureau Straegic Plan; Orlando/Orange Comty Convention Center Distri::t Strategc Plan; Centemlal Olyrrpic Pam Area Strotegi: Plan; Rio 2004 Olyrrpics Bid Plan; Miem Pan American Games Focility Plan for Bid; Futon County, and GA Economi: Dewlopment Stra1egy .

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StrategicAdvisoryGroup
Jerry McClendon Partner
Mr. McClendon's career includes over 20 years of consultancy experience. Prior to joining SAG, Mr. McClendon held management positions at Ernst & Young and was a senior consultant with KPMG Peat Marwick. Mr. McClendon received his Master's and Bachelor's Degrees from Oklahom a State University, and earned his certification for public accountancy. Representative Clients:
Event Facility Feasibility & Advisory Experience - Myrtle Beach Amphitheater, Northern Virginia Baseball Stadium, New York Yankees Baseball Stadium, Triad North Carolina Baseball Stadium, Sovoonah Minor league Baseball Stadium, New England Patriots Stadium, Tennessee Titans Football, Asheville Civic Center, Cumberland County Coliseum Complex; Birrringham Domed Stadium; Burlington Arena; Shreveport Arena and Hirsch Coliseum; and New England Patriots Domed Stadium, the 2007 Pan American Games. Convention Cener Feasibilty & Advisory Experienc:e - Amarillo Civic Ce nter; Baltimore Convention Center; Burlington Convention Center (proposed); Charlotte Convention Center; Cobb Galleria Centre; Midlands Regional Conventlen Center; Cumberland Cou-rty Coliseum Complex; Greenville/Pitt County Convention Center (proposed); Indiana Convention Center; Irving Center at las Colincs; Jackson Township Convention Conference/Convention Center; Liberty Conference Center; M.e. Benton, Jr. Convention and Civic Center; Miami Beach Conference Center; Myriad Convention Center; Myrtle Beach Convention Center; Orlando/OrOlge County Convention Ce nter; Queen Sirikit Convention Cente r; Richmond Center for Conventions & Exhibitions; Sarasota Convention Center (proposed); Shreveport Convention Center; Toronto Exhibition Place Trademart and Exhibit Hall; Vancouver Trade and Convention Centre; Wausau Convention Center; Wildwood Convention Center; Williamsburg Convention Center; Wilmington Convention Center; and Palm Beach County Convention Ce nter. Conference/Convention Hotel Feasibility & Advisory Experience Convention center headquorter hotel projects in Boston MA; Houston TX; Myrtle Beach SCi Charlotte NC; Wausau WI; Greenville-Pitt County SCi Sarasota FL; and Columbia Sc. Public Finance Advisory & Transaction Due Diligence -Cobb Galleria Center outside of Atlanta ($48 million in revenue bonds); Baltimore Convention Center ($63 million in revenue bonds); and Cumberland County Coliseum Complex ($52 million of COPs). Pre-Development Project Management Experience - Orlando/Orange County ConventIon Center Phose V Expansion; Irving Convention Center and 450-room Hotel; 1,200 room Houston Convention Center hotel; 400·room Myrtle Beach Convention Center Hotel; Morehead City/Carteret County Convention Center; and Wilmington Convention Center. Strategic Planning Experience - International Association of Convention ut.u Vhilul [}uleuu T1l1ee-Yeor Stralegk 1'1011; l'ill~bulgh Tourism & Convention Marketing Study; Orlando/Orange County Convention and Visitor Bureau Three-Year Strategic Pion; Myrtle Beach 30-year Visioning Plan; Orlando/Orange County exhibitor order internet solution; Massac husetts Co nvention Center Authority exh i bitor 0 rde r internet solution; Cumberland County Coliseum Complex facility management software installation; Orlando/Orange County Convention Center Convention District Strategy; and Miomi Pan American Games Facility Bid Plan.

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StrategicAdvisoryGroup
Martin McFarland
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Mr. McFarland's career includes over 20 years of development and advisory experience. Prior to joining SAG, Mr. McFarland held regional and national leadership positions with Opus South, Alvarez & Marsal, Trammell Crow Company, and Jones lang LaSalle. Mr. McFarland received his Bachelor's degree from the Georgia Institute of Technology, his Master's degree from Darden Graduate School of Business at the University of Virginia, and his Juris Doctor from Georgia State University.

Representative Clients:
Real Estate Development & Finance (Public/Private) Experience - Union Station Redevelopment, Washington, DC; Fairfax County Government Center, Fairfax, VA; Arlington Government Center, Arlington, VA; South Riding Mixed Use, Loudoun County, VA; New Orleans School District Katrina rebuild; and Duke Health Medical office Building, Raleigh, NC. Real Estate Development & Finance (Private) Experience . South Riding Mixed Use, Loudoun County, VA; Suwanee Gateway Mixed Use, Atlanta, GA; Couchville Pike Industrial Park, Nashville, TN; Reno Airport Authority Development, Reno, NV; Southwest Industrial Park, Reno, NV; Equifirst Forest Park Business Park, Charlotte, NC; Hearst Tower TI, Charlotte, NC; Cheyenne Industrial Park, Las Vegas, NV; and Fountain Square, Boca Raton, FL. Projed Management Advisory Experience - New Orleans School DistrictKatrina rebuild; IRS Physical Facilities Studies; and Saudi Arab ia Real Estate Company. Corporate/Institutional Advisory Services Experience - Microsoft; Bank of America; American Express; Exxon Mobil; and The MacArtoor Foundat ion.

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