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Home My WebLink AboutDELOITTE & TOUCHE, LLP - 1997-10-06 (3)is (14) 10/06/97 - Counci, Igency Agenda - Page 14 E-21. (City Council) Final Tract Map No. 15355 Of Tentative Tract Map No. 15355 With Bonds And Agreements - St. Augustine Subdivision - OC Ventures II, Inc. - s/e Corner Of Seapointe Street And Garfield Avenue - (15 420.60) 1. Approve Final Tract Map No. 15355 and accept the offer of dedication and improvements and bonds pursuant to Findings and Requirements listed in Attachment No. 1 to the Request for Council Action dated October 6, 1997; and 2. Approve Subdivision Agreement by and between the City of Huntington Beach and OC Ventures ll, Inc. for Tract No. 15355 and authorize execution by the Mayor and City Clerk. Submitted by the Community Development Director [Approved 7-0] F. Administrative Items F-1. (City Council) Reauest For Additional Fundina In Preparation For Possible El Nirio Storms - Transfer Of Funds (320.45) Communication from the Public Works Director regarding a request for additional funding in preparation for possible El Nino Storms. (For sand, automatic sandbagger, rental of alpha numeric pagers, mobile pumping unit, Lark Lane/Trophy Drain interim drainage facility, and Gregory Lane Storm Channel Repairs.) Recommended Action: Motion to: Authorize the Finance Director to transfer a total of $198,205 from the city's unappropriated General Fund balance to the appropriate Public Works program account. [Approved 6-0 (Garofalo Out Of Room)] F-2. (City Council) Deferred From September 15. 1997 - Aareement With Deloitte & Touche, L.L.P. For Preparation Of Fiscal Feasibility Studies For The Proposed Huntington Central Park Sports Complex And Gun Range - Amendment To General Fund Budget (DE 600.10) Communication from the Deputy City Administrator -Administrative Services Director and the Community Services Director regarding proposals obtained for the purpose of hiring an independent financial consultant to prepare a market analysis and proforma on the Huntington Central Park Sports Complex and the Gun Range. Recommended Action: Motion to: 1. Approve the Agreement Between the City of Huntington Beach and De/oitte & Touche, L.L.P., for Consulting Services in Connection with a Potential Youth Sports Facility and Gun Range, in the amount of $47,500 to prepare a Fiscal Feasibility Study on the Huntington Central Park Sports Complex and Gun Range and authorize execution by the Mayor & City Clerk; and 2. Approve an Amendment to the current year General Fund Budget by appropriating $52,250 (contract - $47,500 expense reimbursement $4,750) for the Fiscal Feasibility Study. [Approved 6-0 (Garofalo Out Of The Room)] (14) a.� / a 11-197 Council/Agency Meeting Held: Deferred/Continued to: IH"Approved ❑ Conditionally Ap roved ❑ Denied —D City CI k's Signature Council Meeting Date: 10/6/97 Department ID Number: AS 97-034 CITY OF HUNTINGTON BEACH C REQUEST FOR COUNCIL ACTION N = t� n_ C) SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS m C `` rn W C7 SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrat r PREPARED BY: ROBERT J. FRANZ, Deputy City Administrator, Administrativd:seN. ices RON HAGAN, Director, Community Servicesv�� SUBJECT: APPROVE PREPARATION OF FISCAL FEASIBILITY STUDIES FOR SPORTS COMPLEX AND GUN RANGE PROJECT Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis; Environmental S tus, Attachment(s) Statement of Issue: Administrative Services and Community Services have obtained proposals for the purpose of hiring an independent financial consultant to prepare a market analysis and proforma on the proposed Huntington Central Park Sports Complex and for a proposed gun range. Proposals have been reviewed and the selection of a consultant is the next step in the process. Funding Source: General Fund, Unappropriated Fund Balance. Contract Amount: . $47,500 Expense Reimbursement 4.750 Total Allocation: $52,250 Recommended Action: 1. Motion to approve the contract with Deloitte & Touche in the amount of $47,500 to prepare a fiscal feasibility study on the proposed Huntington Central Park Sports Complex and for a proposed gun range; and 2. Motion to approve an amendment to the current year General Fund budget by appropriating $52,250 (contract=$47,500+ expense reimbursement=$4,750) for the fiscal feasibility study. Alternative Actions : 1. Request additional proposals; 2. Direct staff to follow a different approach or direction. •QUEST FOR COUNCIL ACTION MEETING DATE: 10/6/97 DEPARTMENT ID NUMBER: AS 97-034 Analysis: On June 6, 1997 the city issued Requests for Proposal to conduct fiscal feasibility studies on two capital- projects. One project is to develop a sports complex on undeveloped land in Huntington Central Park. The other project is to construct and operate a police and public gun range on a site yet to be determined. Sports Complex Project -- A site within the undeveloped portion of Huntington Central park has been designated for the proposed sports facilities. The city has hired a consultant to prepare an Environmental Impact Report and specific plan for Huntington Central Park. Proposals have been requested from independent financial consultants for a market analysis and proforma based on a user fee concept to fund the project. Debt may be issued to `construct multipurpose sports fields, roller hockey arenas, batting cages, concession facilities, rest rooms, and parking lots. Potential revenues will be derived from roller hockey, concessions, league fees, tournament fees, rental fees, parking meters, contributions from various youth and adult groups, and facility naming opportunities. The consultant will evaluate what fees can be charged; projected occupancy rates, and expected total annual revenues. The city needs an independent analysis of the projected revenues compared to the potential annual debt service costs plus ongoing maintenance and operating expenses. Gun Range Proiect -- Several potential sites have been identified to build a combined regional police training and public gun range. Some are city -owned ,property and others are privately -owned industrial sites. Two range configurations are being considered. The city requested proposals from independent financial consultants to do a market analysis and proforma to determine if projected operating revenue from a police and/or public gun range would support the annual debt service, maintenance and operation of the facility. In addition, the final phase of the study would determine what the difference would be financially between the various sites. Staff will return to Council with the market analysis and sizing study before preceding with the financial issues associated with the various sites. The potential gun range would consist of both pistol and rifle bays. It would be used for law enforcement training and public purposes. Potential revenues include subscription memberships, public pistol and rifle use, ammunition sales, target sales, and other miscellaneous sales or rentals. Also, revenue may be derived from charges to law enforcement agencies, military, private security companies, and police academy student use. Special interest groups are involved in both of these projects. They have prepared preliminary estimates as to expected costs and revenues for each of the facilities. The consulting firm will review the estimates and receive additional input from these groups. 0026685.01 -2- 09/23/97 1:03 PM •QUEST FOR COUNCIL ACTIRN MEETING DATE: 10/6/97 DEPARTMENT ID NUMBER: AS 97-034 Proposals were requested by eleven firms; four were received. The evaluating committee consisted- of: Ron Hagan, Director, Community Services; Robert J. Franz, Deputy City Administrator; Dan T. Villella, Director of Finance; Jim Engle, Deputy Director, Community Services; and, Rick Amadril, Central Services Manager. On July 3, 1997, the committee reviewed the following firms whose fees are included with a discussion of their experience: Stanley Hoffman Sports Complex: $8,550 Gun Range: $9,770. Both: $18,320. No specific related experience; specialty is commercial and developer KPMG $29,000 No specific related experience Deloitte & Touche $30,000 each Excellent experience; or $47,500 for both no specific gun range studies Hilton Farnkopf Both $109,700 1 More than we needed; no ence Based on the review of the proposals, interviews, and references, the committee is recommending that Deloitte & Touche be selected to prepare these studies based on the following business arrangement. Sports Complex Phase 1 Market Analysis $20,000 Project Only Phase 2 Financial Analysis $10,000 SUBTOTAL $30,000 Gun Range Phase 1 Market Analysis $20,000 Project Only Phase 2 Financial Analysis $10,000 SUBTOTAL $30.000 Sports Complex & Phase 1 Market Analysis $27,500 Gun, Range Project Phase 2 Financial Analysis $20,000 SUBTOTAL $47,500 Expense Reimbursement $4,750 TOTAL $52,250 0026685.01 -3- 09/16/97 10:34 AM •QUEST FOR COUNCIL ACTIN MEETING DATE: 10/6/97 DEPARTMENT ID NUMBER: AS 97-034 Attachment(s): Contract for consultant services with Deloitte & Touche 2 1 Dun & Bradstreet Performance Review 3 1 Letter from Deloitte & Touche re: Fixed Expense Reimbursement 4 FIS 0026685.01 -4- 09/23/97 2:41 PM J Council/Agency Meeting Held: 9.�t s &7 Deferred/Continued to: /bA 7 G-a ❑ Approved ❑ Conditionally Approved. ❑ Denied City Cle 's Signature Council Meeting Date: 9/15/97 Department ID Number: AS 97-034 c/� c CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION rn '� r , a �vmrn v-nz0 SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS 91 SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator t �_ ' PREPARED BY: ROBERT J. FRANZ, Deputy City Administrat dministrative Se RON HAGAN, Director, Community Service SUBJECT: PREPARATION OF FISCAL FEASIBILITY STUDIES FOR SPOR - COMPLEX AND GUN RANGE PROJECT Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Administrative Services and Community Services have obtained proposals for the purpose of hiring an independent financial consultant to prepare a market analysis and proforma on the Huntington Central Park Sports Complex and the Gun Range. Proposals have been reviewed and the selection of a consultant is the next step in the process. Funding Source: General Fund, Unappropriated Fund Balance. Contract Amount: $47,500 Expense Reimbursement 4.750 Total Allocation: $52,250 Recommended Action: 1. Motion to approve the contract with Deloitte & Touche in the amount of $47,500 to prepare a fiscal feasibility study on the Huntington Central Park Sports Complex and Gun Range; and 2. Motion to approve an amendment to the current year General Fund budget by appropriating $52,250 (contract=$47,500+ expense reimbursement=$4,750) for the fiscal feasibility study. Alternative Action(s): 1. , Request additional proposals; 2. Direct staff to follow a different approach or direction. Analysis: On June 6, 1997 the city issued Requests for Proposal to conduct fiscal feasibility studies on two capital. projects. One project is to develop a sports complex on *QUEST FOR COUNCIL ACION MEETING DATE: 9/15/97 DEPARTMENT ID NUMBER: AS 97-034 undeveloped land in Huntington Central Park. The other project is to construct and operate a police and public gun range. Sports Complex Project -- A site within the undeveloped portion of Huntington Central park has been designated for the proposed sports facilities. The city has hired a consultant to prepare an Environmental Impact Report and specific plan for Huntington Central Park. Proposals have been requested from independent financial consultants for a market analysis and proforma based on a user fee concept to fund the project. Debt may be issued to construct multipurpose sports fields, roller hockey arenas, batting cages, concession facilities, rest rooms, and parking lots. Potential revenues will be derived from roller hockey, concessions, league fees, tournament fees, rental fees, parking meters, contributions from various youth and adult groups, and facility naming opportunities. The consultant will evaluate what fees can be charged; projected occupancy rates, and expected total annual revenues. The city needs an independent analysis of the projected revenues compared to the potential annual debt service costs plus ongoing maintenance and operating expenses. Gun Range Project -- Two potential sites have been identified to build a combined regional police training and public gun range... Various range configurations are being considered for the different sites. The city requested proposals from independent financial consultants to do a market analysis and proforma to determine if projected operating revenue from a police and/or public gun range would support the annual debt service, maintenance and operation of the .facility. The potential gun range would consist of both pistol and rifle bays. It would be used for law enforcement training and public purposes. Potential revenues include subscription memberships, public pistol and rifle use, ammunition sales, target sales, and other miscellaneous sales or rentals. Also, revenue may be derived from charges to law enforcement agencies, military, private security companies, and police academy student use. Special interest groups are involved in both of these projects. They have prepared preliminary estimates as to expected costs and revenues for each of the facilities. The consulting firm will review the estimates and receive additional input from these groups. Proposals were requested by eleven firms; four were received. The consisted of: Ron Hagan, Director, Community Services; Robert J. Administrator; Dan T. Villella, Director of Finance; Jim Engle, Deputy Services; and, Rick Amadril, Central Services Manager. evaluating committee Franz, Deputy City Director, Community 0026685.01 -2- 08/06/97 11:06 AM %QUEST FOR COUNCIL ACMN MEETING DATE: 9J15,/"97 DEPARTMENT ID NUMBER: AS 97-034 On July 3; 1997, the committee reviewed the following firms whose fees are included with a discussion of their experience: Stanley Hoffman Sports Complex: $8,550. No specific related Gun Range: $9,770. experience; specialty is Both: $18,320. commercial and developer roiects KPMG $29,000. No specific related Deloitte & Touche $30,000 each Excellent experience; or $47,500 for both no specific gun range studies Hilton Farnkopf Both $109,700 More than we needed; no sports experience Based on the review of the proposals, interviews, and references, the committee is recommending that Deloitte & Touche be selected to prepare these studies based on the following business arrangement. Sports Complex . Phase 1 Market Analysis $20,000 Project Only Phase 2 Financial Analysis $10,000 SUBTOTAL $30.000 Gun Range Phase 1 Market Analysis $20,000 Project Only Phase 2.Financial Analysis $10,000 SUBTOTAL $30,000 Sports Complex & Phase 1 Market Analysis $27,500 Gun Range Project Phase 2 Financial Analysis $20,000 SUBTOTAL $47,500 Expense Reimbursement 1 $4,750 TOTAL 1 $52,250 0026685.01 4- 08/06/97 11:06 AM QUEST FOR COUNCIL ACAN MEETING DATE: 8/18/97 DEPARTMENT ID NUMBER: AS 97-034 Attachment(s): Contract for consultant services with Deloitte & Touche 2 1 Dun & Bradstreet Performance Review 3 1 Letter from Deloitte & Touche re: Fixed Expense Reimbursement 4 FIS 0026685.01 -4- 09/05/97 10:32 AM AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND DELOITTE & TOUCHE, LLP, FOR CONSULTING SERVICES IN CONNECTION WITH A POTENTIAL YOUTH SPORTS FACILITY AND GUN RANGE THIS AGREEMENT is made and entered into this %+h day of O c, o b e-r , 1997, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter referred to as "CITY", and DELOITTE & TOUCHE, LLP, a Connecticut limited liability partnership, hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to provide consulting services to the City of Huntington Beach in connection with a potential youth sports facility and gun range; and Pursuant to documentation on file in the office of the City Clerk, the provisions of HBMC Chapter 3.03 relating to procurement of professional service contracts has been complied with; and CONSULTANT has been selected to perform said services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1. TERM OF AGREEMENT This Agreement shall commence on the day and year set forth herein as the execution date and shall terminate upon completion of CONSULTANT's submittal of their final report. CONSULTANT shall provide all services as described in CONSULTANT's proposal dated June 27, 1997, and Scope of Services (hereinafter collectively referred to as Exhibit "A"), which is attached hereto and incorporated into this Agreement by this reference. Said services shall sometimes hereinafter be referred to as "PROJECT." 1 .7 • CONSULTANT hereby designates Daniel S. Barrett, Stewart Rog and Leon Devaney who shall represent it and be its sole contacts and agents in all consultations with CITY during the performance of this Agreement. 3. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 4. TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of the CONSULTANT are to commence as soon as practicable after the execution of this Agreement, and all tasks specified in Exhibit "A" shall be completed as soon as practicable. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in the Scope of Services on the Work. Program/Project Schedule. This schedule may be amended to benefit the PROJECT, if mutually agreed by the CITY and CONSULTANT. CONSULTANT shall complete all reports by the dates detailed in the Proposal. 5. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT Forty -Seven Thousand, Five Hundred Dollars ($47,500) plus Four Thousand, Seven Hundred Fifty Dollars ($4,750) in reimbursables fora total amount not to exceed Fifty -Two Thousand, Two Hundred Fifty Dollars ($52,250). In the event CITY requires additional services not included in Exhibit "A," or changes in the scope of services described in Exhibit " A," CONSULTANT will undertake such work after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. If unusual circumstances are encountered which make it necessary for CONSULTANT to do additional work, CONSULTANT shall report such conditions to CITY's City Council and City Administrator prior to undertaking such additional work, and request additional 2 compensation at CONSULTANT's agreed billing rates, all of which shall be subject to a written amendment hereto, approved by the City. Council. 7. METHOD OF PAYMENT A. CONSULTANT shall be entitled to progress payments toward the. fixed fee set forth herein in accordance with the progress and payment schedules set forth in Exhibit "A". B. Delivery of work product: A copy of every technical memo and report prepared by CONSULTANT shall be submitted to the CITY to demonstrate progress toward completion of tasks. In the event . CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. Any such product which has not been formally accepted or rejected by CITY shall.be deemed accepted. C. The CONSULTANT shall submit to the CITY an invoice for each progress payment due. Such invoice shall: 1) Reference this Agreement; 2) Describe the services performed; 3) Show the total amount of the payment due; 4) Include a certification by a principal member of the CONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement; and completed. 5) For all payments, include an estimate of the percentage of work Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall promptly approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non -approval, within seven (7) calendar days of 3 receipt of the invoice, and the schedule of performance set forth in Exhibit "A" shall be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement is terminated as provided herein. D. Any billings for extra work or additional services authorized by CITY shall be invoiced separately to the CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. report. E. Final payment shall be made when CITY receives CONSULTANT's final 8. ADVICE AND CONSULTATION CONSULTANT shall provide advice and consultation on matters that may arise from -time to time that will affect PROJECT. CONSULTANT shall provide CITY staff with advice and consultation as required throughout the year relating to subject matter of this Agreement. 9. INDEMNIFICATION AND HOLD HARMLESS CONSULTANT will only be obligated for indemnification for bodily injury, death or damage to real or tangible personal property to the extent directly and proximately caused by the negligence or willful misconduct of CONSULTANT while engaged in the performance of services under the engagement; provided, however, that if there also is fault in the part of the CITY or any entity or individual indemnified hereunder or any entity or individual acting on CITY's behalf, the foregoing indemnification shall be on a comparative fault basis. Further, the foregoing indemnity obligations are conditioned on CITY providing CONSULTANT with prompt notice of any claim for which indemnification shall be sought and 4 cooperating in all reasonable respects with CONSULTANT in connection with any such claim. CONSULTANT shall be entitled to control the handling of any such claim and to defend or settle any such claim, in its sole discretion, with counsel of its own choosing. Limitation on Damages, a) CONSULTANT, its partners, principals and employees shall not be liable to CITY for any actions, losses, damages, claims, liabilities, costs, or expenses in any way arising out of or relating to this engagement for an aggregate amount in excess of the fees paid by CITY to CONSULTANT for the services performed pursuant. to this engagement. The foregoing provision shall apply regardless of the form of action, loss, damage, claim, liability, cost or expense, whether in contract, statute, tort (including, without limitation, negligence), or otherwise, in no event shall CONTRACTOR, its partners, principals or employees be liable for consequential, special, indirect, incidental, punitive or exemplary loss, damage, cost or expense (including without limitation, lost profits and opportunity costs). b) In furtherance and not in limitation of the foregoing, CONTRACTOR will not be liable in respect of any decisions made by CITY as a result of the performance by CONTRACTOR of its services hereunder or in connection with the design or implementation of any system or any agreement governing or relating to the design or implementation of any system. f [I , 1 1- 1 u ' Q]9 CONSULTANT shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of the California Labor Code and all amendments thereto, and all similar state or federal acts or laws applicable. CONSULTANT shall obtain and furnish evidence to CITY of maintenance of statutory workers compensation insurance and employers liability in an amount of not less than $100,000 bodily injury by accident, each occurrence, $100,000 bodily injury by disease, each employee, and $250,000 bodily injury by disease, policy limit. 5 • • 11. INSURANCE In addition to the workers compensation insurance and CONSULTANT's covenant to indemnify CITY, CONSULTANT shall obtain and furnish to CITY the following insurance policies covering the PROJECT: A. General Liability Insurance A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify CONSULTANT, its officers, _agents, and employees, while acting within the scope of their duties, against any and all claims of arising out of or in connection with the PROJECT, and shall provide coverage in not less -than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name CITY, its officers, and employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage and that CONSULTANT's insurance shall be primary. CONSULTANT shall acquire a professional liability insurance policy covering the work performed by it hereunder. Said policy shall provide coverage for CONSULTANT's professional liability in an amount not less than $500,000 per claim. A claims made policy shall be acceptable. 12. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY certificates of insurance, subject to approval of the City Attorney, evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall provide the name and policy number of each carrier and policy, and shall state that the policy .is currently in M force and, shall promise to provide that such policies will not be canceled or modified without thirty (30) days' prior written notice of CITY. CONSULTANT shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by CITY. CITY or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. A separate copy of the additional insured endorsement to each of CONSULTANT's insurance policies, naming the CITY, its officers, and employees as Additional Insureds shall be provided to the City Attorney for approval prior to any payment hereunder. 13. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor. CONSULTANT shall secure at its expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation, and other payroll deductions for CONSULTANT and its officers, agents, and employees and all business licenses, if any, in connection with the services to be performed hereunder. 14. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. Time and expense will be paid for work already completed up to the time of termination. Either party may terminate this Agreement upon thirty days' written notice, delivered in accordance with the provisions under Paragraph 21 of this Agreement. 7 15. ASSIGNMENT AND SUBCONTRACTING This Agreement is a personal service contract, and the supervisory work hereunder shall not be delegated by CONSULTANT to any other person or entity without the consentzof CITY. 16. CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the Californi Government Code. 17. FAIR EMPLOYMENT PRACTICES/EOUAL OPPORTUNITY ACTS In the performance of this Agreement, CONSULTANT shall comply with all applicable provisions of the California Fair Employment Practices Act (California Government Code § 12940, et seq.) and the applicable equal employment provisions of the Civil Rights Act of 1964 (U.S.C. 2000e, etseq.). 18. AGENCY Except as CITY may specify in writing, CONSULTANT shall have no authority, express or implied, to act on behalf of CITY as its agency in any capacity whatsoever. CONSULTANT shall have no authority hereunder, express or implied, to bind CITY to any obligation whatsoever. 19. CONFLICT OF INTEREST During the term hereof, CONSULTANT shall not accept or perform any employment, or have any financial interest, which in any way conflicts with its performance of this Agreement. Huntington Beach City Charter §616 provides that during the term hereof, CONSULTANT may have no personal interest, direct or indirect, in the fiscal affairs of the CITY government or any of its officers. 20. NOTICES Any notice or special instructions required to be given in writing under this Agreement shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY's Director of Finance, as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO CITY: Dan Villella Director of Finance City of Huntington Beach 2000 Main Street - Huntington Beach, CA 92648 21. IMMIGRATION TO CONSULTANT: Leon Devaney Deloitte & Touche, LLP 1000 Wilshire Boulevard Los Angeles, CA 90017-2472 Stewart Rog Deloitte & Touche, LLP 2 Hilton Court Parsippany, NJ 07054-0319 CONSULTANT SHALL be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 22. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by -CONSULTANT. 0 0 23. ENTIRETY The foregoing, and Exhibit "A": attached hereto, set forth the entire Agreement between the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. DELOITTE & TOUCHE, LLP a limited liability partnership: Joseph P . McNu ty( By: '/� Stewart Rog Principal ATTEST: City Clerk I A0197 REVIEWED AND APPROVED: City Admini trator CITY OF HUNTINGTON BEACH, A municipal corporation of the State of California APPROVED AS TO FORM: City Attorney g. C 10 r. hod. io v c JUL-29-1997 15:16�� P.02/02 (;LHTIFICATE OF INSIRANCE.Ewe owTe (MwDon n 07/28/97 ODUCEA THIS CERTIFICATE IS ISSUED AS A MATTER OF INF MATEON ONLY AND CONFEFI NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CFRTIPICATIE OOES NO Alexander & Alexander of New York, Inc. AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOV , 1185 Avenue of the Americas COMPANIES AFFORDING COVERAGE New York, .New York 10036 �a TRANSPORTATION INSURANCE CO. wAEo COMPANY �ER Y &ONTINENTAL CASUALTY CO. COMPANY C LETTER COMPANY D DELOITTE & TOUCHE; LLP ` en TEN WESTPORT ROAD CO�MPPANY E , to. M.. - �� A A 1A4E rER THIS IS TO CERTIFY THAT THE POLICIES OF 1NSUAANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWrrHSTANOING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CEATIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUaJECTTO ALL THE TERMS. FXCLU916NA ANn CnNnITInNQ AF SLIL`M P[11 II`IC.0 I IMITC CWt'%1MPI ueV u.vc CCC%f MCPU IPrcn nV bA,R rI Awe cc LTR TYP¢ OF INSURANCE POLLCY NUMBEA POLICT EFFECTIv6 DATE (MM/CO/YYI POLICY EXPIRATION GATE N W00") p 'aENEAALLIA91UTV GL 502522272 6/01/95 W01/98 GENERALAG6AEOATE S 2,10 020 COMMERCIAL GENERAL LWSIIJTY PA00.40MP/OP AGG. i 1 We gee cLAIMs MADE ® OOCUA, PEAS. 8 ACV. NJUAY 6 ! 000 000 OWNER'S A CONTRACTOR'S PROT. EACH OCCURRENCE Q 000 Ion SAE DAMAGE „ 0e� eee M0. EXPENSE (am 004 S AUTOM09+6E L1A8ILRr EDSINGLE B X ANY AUTO BM 302522273 A/S 6/01/95 6/01198 LIMIT S 1 Et100 Q$0 B JX ALL OWNED AUTOS BUA 002522275 TX. 6/01 /9S /01 /98 9ODILY INJUAY SCHfOUL0 AUTO$ (Po/ Paw) S HIRED AUT36 S NON -OWNED AUTOS VOW IG! 3"Ideno �V QAAAGELIA9TY �; �T� \ PMOPERTY DAMAGE i 1X=S LIA9WTY Gt, :"' %, ;., '+, EACH OCOUARENQE t UM9AELLAFORM C"j` - - Ac)-rne AGG>;E6aTE i OYHEA THAN UMBRELLA FORM �~ A WDRKER'SCONPeNSATION WC 70252227 •'• 6/01/95 6/01/98 aTATVrOAYLu�Im ANO �el - EACH ALCIOENT '. S 1, Mao EItOE� OISEAEE—POLICY LIMIT S 19 0060 0" EMPLOYET+S, LIABILITY , a(� OISEABE—EACH EMP, 1 t 1 000' w0 B OTHOHYSICAL DAMAGE BUA 30EM2273 6/01 /95".'1216101,198 $500 COMP. DED. 4500 COLL. DED. .Ic76✓ 1P`110N UP oPXMYIUNSIWSATTO„S/vEM10LFSlSPE=TTEHZ City of Huntington Beach, its agents, officers and employees are included as additional insureds. City of $untington Beach, its agents., officers and employees 2000 Main Street P.O. Box 190 Huntington Beach, CA 92548 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THI EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR T( MA1O0 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO TH: LEFT. BUT FAILURE TO MAIL SUCH NOnCE SHALL IMPOSE NO OBLIGATION Of LIABILITY OF ANY KIND UPOpr 77.1)3 l.OMPAY. ITS AGENTS OR REPRESENTATIVE: IAUTMORr1E0 REPPESENTATriE l ( A )() 111f ♦(r // TOTAL P.02 d1-1 3HDnoi 2 311I013C 92 : VT L66T-6Z--)nr P0/20'd OddS 889 ZTE Jul-28-9T 15:46 From:MINE1 INC. 151a98251T� T-932 P.02/03 Job-331 Mind July 28th, 1997 Mr. Dan Barrett, Deloitte & Touche LLP, 1000 Wilshim Blvd., Ste. 1500, Los Angeles, CA U.S.A. 90017 Dear Mr. Barrett: Global Professional Services d4A64�et&14 J �oA/F7 Minal Inc. 1801 mooill College Avenue SutiC 11�0 NSoncreal. Quebec PIRA 2N4 Telephone: 614.285.1273 Vex: 514.982.6175 PROFESSIONAL INDEMN17Y INSURANCE RE: VERIFICATION OF INSURANCE CITY OF HUNTINGTON BEACH, ITS AGENTS, OFFICERS AND EMPLOYEES In accordance with instructions received from Mr. Paul Guerin of Deloitte 8 Touehe LLP, N960n2i Office, Wilton, we now have pleasure in enclosing the Verification as requested. We trust you will find the enclosed to be in order. Yours, sincerely, Pt° Gail lnniss Senior Account Representative Enclosure cc: Susette Curtin, Delaitte & Touche LLP, National Office - Connecticut d0i£0 "d OPPS 889 £ti? del 3Honoi 2 311I013a 9£ :17T L66T-6Z--nr D0 ' d -idiot • ��//� q 7 JUL-N-9I 15:4E rrOM M My ins. Global Professional vlinet Inc. Services 1301 McClli donee:,* Avenue Suite 1100 ind Montreal. Quebec H3A 4N4 'tidephene, 314.28a.22T9 tax* 514.982.6175 YERIFICAMON OF IN$URANCE We, the underafgned Insurance Brokers, hereby verify that Nautilus Indemnity Limited has issued the following described insurance which is in force as of the date hereof: - NAME OF ASSURED: DELOITTE & TOUCHE LLP (U.S.A.) and others as more fully described in the Policy. MLICY NO, INIURER PERIoo 001' LIMIT: CANCELLATION: Nautilus Indemnity Limited 12:01 a.m. January 1st, 1997 to 12:01 a.m. January 1st, 19913 US$1,000,000 (an annual aggregate) This policy is non -cancellable during the period shown. SUBJECT TO THE TERMS, CONDITIONS, EXCLUSIONS AND LIMITATIONS OF THE POLICY. This document is famished as a matter of information only. The issuance of this document does not make tho person or organization to whom it is issued an additional Assured, nor does it modify in any mariner the contract of insurance between the Assured and the Insurer. Any amendment, change or e: tenslon of such contract can only be effected by specific endorsement attached thereto. ISSUED TO: ISSUED AT: DATE: City of Huntington Beach, its Agents, Officers and Employees, 2000 Main St., P.O. Box 190, Huntington Beach, CA U.S.A. 9284a Montreal. Quebec Per. July 28th, 1997 Dixie A member of The St, Paul Companies. Inc. PO,' 0'd OPPS 889 £tZ d-1-1 3Honoi 2 311I013a 9£:17i L66t-62--inr ;, CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CRY CLERK CITY CLERK LETTER OF TRANSMITTAL REGARDING ITEM APPROVED BY THE CITY COUNCIUREDEVELOPNIENT AGENCY APPROVED ITEM DATE: Oe,+o h e r c20 , j-9 cl 7 TO:be Ioi ii".e, 4 lz)oelP P. L- L- P, Name 101) Wj•Ishj re. nr�(eVt�KO Veet �y,, Anaeles. N'LIF- . g1001-7-, q-7Z City, State, Zip See Attached Action Agenda Item F 2 ATTENTION: L"A3 beta-ne, DEPARTMENT: REGARDING: Fe-asct b i i, �5-i d t 5,owt7s Corn Pi-e > G ILO R"r- i�"- Date of Approval I O to j % Enclosed For Your Records Is An Executed Copy Of The Above Referenced Item For Your Records. LLP • C C : ST�w�-? BOG Connie BrockNvay 2" 1+0to C-0 0 &,- City Clerk ?A r51 pp any)- 1UeW J-�r,5ey, 07D54 - b319 Attachments: Action Agenda RCA Remarks: Page ,/ Agreement Bonds Insurance Deed Other CC: I-X f -A/7- �D/IIa✓ cuf=k d/r' S D- artment RCA i Na//m//ems^, Agrcemc t Insu an Other nn , / Name Department RCA Agreement Insurance - Other Name Department RCA Agreement Insurance Other / Risk Management Department Insurance Copy V G: Followup'agrmts-'transitr ( Telephone: 714.536.5227) 11 • ATTACHMENT #1 0 Deloifte & Touche LLP June 27, 1997 Mr. Richard Amadril Central Services Manager City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Dear Mr. Amaddl: 1000 Wilshire Boulevard Telephone: (213) 688-0800 Los Angeles, California 90017-2472 Facsimile: (213) 688-0100 Deloitte & Touche LLP (D&T) is pleased to present this proposal to provide consulting services to the City of Huntington Beach (City) in connection. with a potential youth sports. facility and gun range. It is our understanding that the City is interested in the market and financial feasibility for each of these capital projects. The youth sports facility is anticipated to consist of sports fields, skating rinks and other recreation facilities. The gun range is anticipated to consist of both pistol and rifle bays to be used for law enforcement training and public purposes. It is anticipated that the City would own, operate and manage both facilities and that revenue generated by these facilities would fund operating and maintenance expenses,,and debt service requirements. Based on our understanding of your needs, we have assembled a project team with extensive experience in the planning and development of sports and recreation oriented facilities. Our team provides an :efficient combination of local and regional presence, supplemented by specialized technical resources and substantial experience with similar projects.. Our project team has also formulated and refined a proven and focused approach to meet your objectives, and provide practical, implementable results which reflect development realities and not just theoretical research and national statistics. Based on our understanding of your needs, D&T proposes to provide you with services in the areas described below (for each capital project): • Phase I: Market Analysis • Phase II: Financial Analysis. Our project team has a number of unique strengths that distinguish us from other firms. We are recognized or our objectivity and national eminence. Given the nature of this study, it is imperative that the consultant have an image of eminence and objectivity. Our project team is nationally recognized for expertise in all aspects of sports and recreation. As _ a firm, D&T has made a commitment to providing services to the industry. Furthermore, as a "Big Six" professional services firm, D&T has a long track record of objectivity. Our nrolect experience is directly applicable. D&T has extensive experience in the planning, financing, development and operations of sports and recreation facilities. The prior DelaitteTauehe 2029 Century Park East. Suite 300. Los Angeles, California 90067-2900 Telephone: (310)551-6700 Facairnile: WM 284.9029 Tohrutsu One World Trade Center. Suite 2200. Long Beach, California 90831.2200 Telephone: (3101499-8300 Facsimile: 0101437.47E' Irtaatianal 21550 Oxnard Street. Suite 800. Woodland Hills, California 91367-7125 Telephone: (8181593-4800 FaCSimile: (81A17a� �� 9719 Fararlav Avantia Siure n Carlshad. California 9200A-77na Mr. Richard Amadril June 27, 1997 Page 2 work of our project team demonstrates experience directly applicable to this engagement. D&T's recent project experience is summarized as follows: Recent Project Experience Client Experience City of Henderson Market, financia.�" and economic/fiscal impact analyses for " proposed 24-field major league baseball spring training complex. J Marketing strategy for recreational and other event uses of the proposed complex. City of Encinitas Market and financial feasibility for proposed golf course to be developed in Encinitas, California. Baker Ranch Golf Course Joint venture deal structure assistance for proposed golf course in Orange County, California. Assisted in identifying potential operators and financing partners. City of Thousand Oaks Limited market and financial analyses of the proposed Hill Canyon golf course in Thousand Oaks, California. Evaluated project delivery alternatives Bridgewater Township Planning assistance to Bridgewater Arena, a twin rink skating facility in Bridgewater, New Jersey Morris County Evaluation of feasibility of expanding the Mennen Arena, a twin rink ice skating facility. in Morris County, New Jersey. Babson University City of Corona _. City of Oklahoma City City of Fort Lauderdale, Broward County, us. and Broward Economic Development Council City of Inglewood .-Cuyahoga County (Cleveland Indians/ Cavaliers) Market, financial and operating analysis of the Babson Recreation Center. Market analysis for proposed community ice/roller skating and recreation center. Feasibility and lease studies for the proposed arena and minor league baseball stadium. Evaluation and estimation of the market demand and financial feasibility of the proposed construction/renovation of Fort Lauderdale Spring Training Complex. Financing strategy for the proposed stadium and arena renovation/construction. Financial analysis of Jacobs Field and Gund Arena. new Jersey Sports and Exposition Authority Numerous planning and operations studies related to the Weadowlands Complex) stadium, racetrack and arena. ChY of Anaheim (California Angels) Feasibility, lease and financing strategy for the proposed baseball stadium. Mr. Richard Amadril .June 27, 1997 Page 3 • Our team is comprised of leading indusf Uecialists. Our project team has unsurpassed national and international experience conducting operations, feasibility, lease, economic impact and capital financing studies for sports and recreation oriented facilities. We have assigned, -,the firm's leading sports and recreation industry consultants to this project. We believe that the qualifications and experience of our team provide us with the understanding, insight and creativity required to help you make this project a success. s J We have a solid record of high -quality, results -oriented planning for .owners, managers planners of: C7 • Recreational Facilities • Arenas & Coliseums • Football & Baseball Stadiums • Convention Centers • Performing Arts & Civic Centers • Casinos & Racetracks • Professional Franchises/Leagues • Museums & Exhibits • Hotels & Resorts • Olympics r • Expositions & Fairs • Golf Courses . As an independent, third party consultant, we have the ability to assist you in a variety of areas. We have performed numerous consulting engagements involving: • Market Demand • Financial Feasibility • Facility Expansion/Renovation • Financing Strategies/Plans (Public & Private) • Tax Revenue Estimates • Revenue Enhancement Strategies • Departmental Reorganization • Operations Turnaround & Cost Reduction • Negotiation Advisory V • Business & Strategic.Planning. • Economic/Fiscal Impact Studies • Sports Authority Advisory • Facility Reuse Analysis • Facility & Franchise Valuations • Premium Seating Analysis • Personnel Administration • Computer Systems Planning • Tax Increment Estimates. We appreciate the opportunity to submit .a proposal for this very important project. Please call Mr. Daniel S. Barrett at (310) 551-6752 or Mr. Leon Devaney at (213) 553-1630 if you have any questions or comments regarding this proposal. 13 I. INTRODUCTION Presented below is a discussion summarizing the Sports and Recreation Industry and our understanding of the assignment at hand. THE SPORTS AND RECREATION INDUSTRY 1 J J The Sports and Recreation Industry is a highly specialized and com,plex industry. .Successful consulting to this industry requires in-depth knowledge and extensive experience in a broad range of areas. Sports and recreation consulting encompasses not only diverse organizational and technical issues, but many projects must be performed under public scrutti in a complex marketing, financial and statutory environment. Day-to-day project work and the results of all project activities must be consistent with industry practices and procedures. Skills in a variety of functional and technical areas must be exercised to support the range of services required by the industry. . ' UNDERSTANDING OF THE ASSIGNMENT The City of Huntington Beach (City) is currently evaluating the planning issues related to the development and operation of.a youth 'sports facility and gun range. As currently envisioned, the . youth sports facility will be located in the undeveloped portion of Huntington Central Park and «ill include sports fields, skating rinks and other recreation facilities. The gun range will be located on one of three potential sites within the City and is anticipated to consist of both pistol and rifle bays to be used for law enforcement training and public purposes. In order to evaluate the development and operational issues surrounding these projects, the City would like to. retain a qualified consulting firm with experience in evaluating the market and financial feasibility of similar facilities. Based upon our understanding of your needs, D&T proposes to provide you with services in the areas described below. Phase I: Market Analysis Phase II: Financial Analysis It is important to note that market and financial. analyses would be completed for each of the Proposed projects. D&T would expect si c 'nteraction with, and input from, -pre_ sentatives oft___ e City during the course of the studies, as. described in the attached scope of vrvices. We will keep the City appraised of our progress on a continual verbal basis and Through ad hoc meetings. This communication will provide flexibility to review the study's t'-sults, thereby eliminating any surprise findings or conclusions. It should be noted that the., v;hedule for this type of engagement is difficult to estimate as many of the sub -tasks are 'lependent on the cooperation of other individuals. lt'h,iae do Touehe LLP—Proposal to Serve the City of Huntington Beach Page I II. SCOPE OF SERVICES Based on our understanding' of the City's needs, we have developed a detailed work plan consisting oftwo phases. The following scope of services provides an overview of the work plan that would. likely be employed for the proposed projects. It is important to note that -because a separate analysis would need to be completed for each of the two- proposed projects, the specific tasks presented below will be completed as appropriate an&necpssary. PHASE I - MARKET ANALYSIS The feasibility of the proposed facilities depends upon many factors, including: • Market demographic characteristics • Potential utilization of the facilities �•� Type and mix. of events ,that can be attracted to the venues Existing competing and/or complementary facilities • Performance of comparable facilities in other markets : �p,%,4pk- 0-A Our analysis in this phase would consider each of these factors. We will use data collected specifically for this engagement and additional market and industry data that we maintain in our 'files, as necessary. Our analysis will assess the local need and opportunity for the facility in the :.arket area. The potential tasks associated with -this phase are as follows: Task 1- Analysis of Local and Regional Market Area In this task, we will analyze the current local market area in terms of base demographic market information, as well as existing competitive facilities. This information will assist us in ('.ctermining existing characteristics and trends that may influence the potential success of the projects. Specifically, we will: 1.1 Analyze demographics of the primary geographic area, including: • Market Area and Location • Population Density • Per Capita and Family Income Parameters • Age Distribution of the Population • Other Key Demographic Characteristics, as appropriate 1.2 Analyze the existing recreation and gun range facilities in the market area to understand the current market competition. This will be accomplished through interviews with local facility managers and an analysis of historical utilization data from these facilities (as available). Utilization statistics to be compiled will depend on. the facilities and may include: • Major Users ,Ii ma's `M CA F. )eloltte & Touche LLP —Proposal to Serve the City of Huntington Beach Page 2 ry • Free (Public) Skating • Contract Rental • Type of Events • Attendance • Other Facility Utilization Statistics Task 2 - Analysis of Comparable Facilities JJ In this task, we will identify and analyze those facilities which will be most comparable to the J proposed projects. The data gathered on these facilities will provide D&T with a range of "base line" performance measures for each type of facility, as well as identify .potential .,strategic opportunities and hazards. The analysis of comparable facilities includes the following sub - tasks: 2.1 Identify three to five existing facilities regionally or nationwide which may be comparable to each of the proposed facilities. 2.2 Collect key information for the comparable facilities and :market .areas, as available. Characteristics to be analyzed will depend on the facility and may include: • Demographic Characteristics • Size • Age • Seating Capacity • Utilization - Major Users - Free (Public) Skating - Contract Rental - Type of Events - Annual Events by Type - Attendance by Event Type • Market Share • Pricing Characteristics • Physical Condition-- Rental/User Fees Due to the nature of our sports and recreation industry consulting practice, some of this information will already be contained in our database of facility utilization and operational characteristics of various sports and entertainment facilities. 2.3 Analyze the data to identify the degree to which the comparable facilities exhibit characteristics similar to what might reasonably be expected for each of the proposed facilities. Deloitte & Touche LLP— Proposal to Serve the City of Huntington Beach Page 3 .: Task 3 - Estimate the Potential Market Demand W Based upon the results of the research tasks completed above, we will prepare estimates of the potential market demand for each of the facilities. Specifically, we will estimate the usage, number of events and annual attendance. 3.1 Evaluate the. anticipated usage and demand .for each .of. the .proposed facilities from potential users. Specific usage and demand willdepend on the facilities and may include the following: " • Recreational Users • Leagues • Organized Competitions • Community Groups • Sporting/Recreational Events • Police Training • Other Potential Users These estimates will allow D&T to. estimate the overall utilization for each of the facilities. Task 4 - Determine Facility Sizing/Configuration Characteristics During this portion of the work effort, we will evaluate key facility sizing/configuration characteristics for each of the facilities .based on the results of the market demand analysis. Facility sizing/configuration characteristics will depend on the facility and may include the following: • Total Capacity • Number of Skating Sheets and Surface Types • Number of Fields • Gun Range Configuration • Parking Requirements �jOther Amenities (e.g. Concessions, Equipment Shops and Entertainment Facilities) We anticipate that the City will provide construction cost estimates for the facilities. . Task S - Report Major Findings Upon completion of this portion of the analysis, we will conduct an interim status meeting with appropriate representatives of the City to present our findings to date. We would expect to deliver our findings in a preliminary draft report. The delivery of final reports will be completed as directed by the City. PHASE II - FINANCIAL ANALYSIS Should the City and D&T jointly reach a decision to continue with the analysis of one, or both, of the proposed projects based upon the preliminary results of the market analysis, D&T would Deloitte & Touche LLP — Proposal to Serve the City of Huntington Beach Page 4 continue with the financial analysis portion of the study. As part of this phase, D&T also would conduct additional in-depth research into each of the facilities' specific revenues and expenses. The specific tasks of this portion of the analysis are as follows: Task I - Develop a Financial Operating Profile for Each Facility The objective of the next portion of this study is to assist,you in the creation of an operating financial profile for each of the facilities for the first _five years of operation, including operating revenues and expenses. A cash flow model will be developed to allow for a number of alternative development scenarios. 1.1 Review and utilize the D&T database of operating revenues and expenses for comparable facilities. 1.2 Based on the comparable financial information obtained in previous tasks, we will assist you in building a financial model to estimate revenue and operating• costs, for each of the facilities for the first five years of operation. 1.3 Evaluate major revenue items for each of the facilities. Estimated revenues will depend on the facility and may include the following: • Facility Rental/Fees • Admission Charges • Equipment Rental • Lessons and Instructions • Group Parties/Activities • ArcadeNideo Game Income (if appropriate) • Concessions • Pro Shop • Parking Meters • Local Auto Dealers • Other 1.4 Assist you in the development of an operating profile for. each of the facilities based on expected usage, planned events, maintenance requirements, advertising and marketing plans, utility usage, and general expenses. D&T expects to work closely with the City in order to develop these assumptions. 1.5 Evaluate operating expenses for each of the facilities. Projected expenses will depend on the facilities and may include the following: • Salaries/Wages and Benefits (Full and Part -Time) • Utilities • Insurance • Concession Cost of Sales X, Deloure & Touche LLP —Proposal to Serve the City of Huntington Beach Page 5 I: • Repairs and Maintenance • Advertising and Promotions • General Administration • 'Capital Replacement • Management Fees, as appropriate • Parking/Security/Admissions • Other N In addition to utilizing information within our internal database and collected during our analysis of comparable facilities, we anticipate input from the. City in . order ,to :develo operatin expense projections. Ott. 1.6 Perform sensitivity analyses on key operating variables for each of the faciliti s. Task 2 - Evaluate Financing for the Proposed Projects Based on the anticipated operating profile for each of the facilities, we will evaluate the anticipated financing structures. Specific sub -tasks will include the following: 2.1 Based on the anticipated operations for each of the facilities, estimate the surplus or deficit, before debt service. 2.2 Prepare preliminary sources/uses of funds for each of the facilities (construction costs to -be provided by the City). Estimate additional financing requirements and related debt service requirements. 2.3 Prepare a construction period flow of funds (to be provided by the City) based on the . proposed financing structures. 2.4 Based on the anticipated operations of the facilities, estimate operating surplus or deficit,. after debt service. 2.5 Perform sensitivity analyses on key financing variables. `Ve anticipate working closely with members of the City to assist in developing an appropriate financing structure for the proposed projects. Task 3 - Report Major Findings Upon completion of this portion of the analysis, we will conduct an interim status meeting with appropriate representatives of the City to present our findings to date. We would expect to deliver our findings in a preliminary draft report. The delivery of final reports will be completed as directed by the City. These reports shall.not be used in any matters pertaining to any real estate or other securities offering,. registration or exemption with any state or with the federal Securities and Exchange Commission. Defy&te A Tnurhe 11.P_ Prnnncnl to Serve the C1ty nfHuntinotnn BeaCh Page 6 •: III. COMPLETION SCHEDULE Based on the proposed work plan and our experience conducting similar engagements, we estimate that the analyses for both facilities can be corripleted within six to eighVweeks from the time we receive your authorization to proceed. Our anticipated schedule for performing this engagement would be as follows: Project Schietfule J Week Activity 1 2 3 4 5 6 7 Phase I - Market Analysis Task 1- Analysis of Local and Regional Market Area Task 2 - Analysis of Comparable Facilities , Task 3 - Estimate the Potential Market Demand Task 4 - Determine Facility Sizing/Configuration and Characteristics Task 5 - Report Major Findings Phase II: Financial Analysis Task 1 Develop a Financial Operating Profile for each Facility. Task 2 - Evaluate Financing for the Proposed Projects Task 3 -Report Major Findings We 4RIjSiate working closely with the City in the performance of this engagement. We will keep you appraise o our progress on a continual verbal basis and through ad hoc meetings. This communication will provide flexibility to review the study's results, thereby eliminating any surprise findings or conclusions. CThis timeline is dependent on the cooperation of the City and other key parties and, as such, represents only an estimate., ndloitte & Touche LLP — Proposal to Serve the City of Huntington Beach Paire 7 IV. QUALIFICATIONS OVERVIEW The following section presents the qualifications of the firm and the project staff. In addition, we have provided a summary of relevant projects and references. Attached to this proposal is a summary of our qualifications to serve the industry. Deloitte & Touche LLP J z J D&T is a multinational public accounting and consulting firm .serving clients .in business, industry and government. D&T has 100 offices in the United States. - An equal.- opportunity employer with an affirmative action plan in force, D&T has a full-time U.S, staff of over 18,000, including more than 1,500 partners. Worldwide, D&T is located in over 120 countries with in excess of 59,000 professionals. D&T has a solid record of high -quality, results -oriented planning, financial feasibility, marketing, and internal operations work for owners, managers and planners of sports facilities, sports franchises, sports leagues, convention centers, hotels; resorts,. Olympics, expositions, fairs, entertainment and recreation facilities. We have performed hundreds of consulting engagements involving demand analysis, business and strategic planning, feasibility studies, lease analyses, financial studies, operations improvement, organization analysis; personnel administration, computer systems planning, systems development and systems implementation. Our extensive consulting experience has given us numerous local and national contacts in the Sports and:Entertainment Industry, sources that are invaluable arid, to a large extent, unique. We have working relationships with private facility operators and financiers, public - facility operators, event promoters, concessions operators, scoreboard manufacturers, franchise owners UM operators, public underwriters and facility architects and engineers. In addition, our ;txperience encompasses many facets of facility operations, including financial systems and controls, promotions and advertising, market research and event planning and reporting. t have provided a wide range of services to the Sports and Entertainment Industry. Our tiicc record consistently demonstrates innovative and implementation oriented solutions. "cnted below is a summary list of our recent project experience and client references: I ��uche LLP —Proposal to Serve the City of Huntington Beach _ Page 8 Recent Project Experience Client IExperience , City of Henderson Market, financial and economic/fiscal impact analyses for proposed 24-field major league baseball spring training complex. Marketing strategy for recreational and _ other event uses of the proposed complex. City of Encinitas Market and fmancial feasibility. for proposed golf course to be developed in Encinitas, California. Baker Ranch Golf Course Joint venture deal structure assistance for proposed golf course in Orange County, California. Assisted in identifying potential operators and financing partners. City of Thousand Oaks Limited market and financial analyses of the proposed Hill Canyon golf course in Thousand Oaks, California. Evaluated project delivery alternatives Bridgewater Township Planning assistance to Bridgewater Arena, a twin -rink skating facility in Bridgewater, New Jersey Morris County Evaluation of feasibility of expanding the Mennen.Arena, a twin rink ice skating facility in Moms County, New Jersey. Babson University Market, financial and operating analysis of the Babson Recreation Center. City of Corona Market analysis for proposed community ice/roller skating and recreation center. City of Oklahoma City Feasibility and lease studies .for the proposed arena and minor league baseball stadium. City of Fort Lauderdale, Broward County, Evaluation and estimation of the market demand and and Broward Economic Development financial feasibility of the proposed constructiontrenovation Council of Fort Lauderdale Spring Training Complex. City of Inglewood Financing strategy for the proposed stadium and arena renovation/construction. Cuyahoga County (Cleveland Indians/ Cavaliers) Financial analysis of Jacobs Field and Gund Arena. New Jersey Sports and Exposition Authority Numerous planning and operations studies related .to the (Meadowlands Complex) stadium, racetrack and arena. City of Anaheim (California Angels) Feasibility, lease and financing strategy for the proposed baseball stadium. Deloitte & ToucheLLP—Proposal to Serve the City ojHuntington Beach Page 9 f 7 Client References U Client Experience City of Anaheim Numerous feasibility, financing and Mr. James D. Ruth economic studies related to the proposed City Manager stadium for the California Angels. 200 S. Anaheim Blvd. Anaheim, CA 92805 (714) 254-5165 _ City of Inglewood J J `Strategic planning consulting services Mr. Paul D. Eckles / related to the development and . financing Former City Manager `/ for the proposed stadium and arena. One Manchester Boulevard Inglewood, CA 90301 (310) 215-3751 Oakland -Alameda County Coliseum Commission Mr. Timothy F. Preece Former Treasurer Board of Directors/Executive Staff 7000 Coliseum Way Oakland, CA 94621 (510) 820-5689 Cuyahoga County (Cleveland) Mr. Dave Abbott County Administrator 1219 Ontario Street Cleveland, Ohio 44113 (214) 658-7094 Dallas Convention Center Mr. Frank Poe . Chief Executive Officer 650 South Griffin Street Dallas, TX 75202 (214) 658-7094 New Jersey Sports and Exposition Authority Mr. Dennis Robinson Executive Vice President for Finance and Administration 50 Route 120 Rutherford, NJ 07073 (201) 935-8500 Allen County War Memorial Coliseum Mr. Randy L. Brown General Manager 4000 Parnell Avenue Fort Wayne, Indiana 46805 (219) 482-9502 Feasibility, financing and negotiating advisory'related to.: the proposed arena for the Golden State .Warriors. Financial. analysis -for Jacobs Field . and . Gund Arena. Numerous feasibility, financing and. economic studies related to, the proposed arena for the Dallas Mavericks and Dallas Stan. Numerous feasibility, fmancing and economic studies . related to the stadium, arena and'other public assembly facilities. Arena expansion feasibility study and operations review. Deloitte & Touche LLP—Proposal to Serve the City of Huntington. Beach Page 10 r2 PROJECT STAFFING The professionals to be assigned to this engagement for the City were selected on the basis of the technical skills and industry experience required for a project of this nature. The selection .of the project team was based on satisfying the project's needs in the most practical, timely and cost effective manner. To this end, D&T has emphasized forming a .project team which brings.. together the proper mix of industry experience and technical -skills. J Our experience has shown that strong project management is essential on engagements of this type. Project management begins with the activities discussed in the workplan.described earlier in this proposal. As the engagement progresses, ongoing communication and coordination with the Project Manager will be key to the engagement's success. Our project management approach includes: • Designating an Engagement Partner as the individual responsible for all aspects of the engagement. • Designating a Project Manager as the individual responsible for the day-to-day project tasks. • Providing interim status meetings to review the progress and results of our analysis. • Immediate communication of problems or issues requiring fast action or response. • Review of results and project deliverables before they are finalized. The following paragraphs provide descriptions of the relevant experience of our proposed project team members (see Appendix A for individual resumes). The staff described below will be available for this project based on current and anticipated schedules. Mr. Stewart Rog, CMC will serve as the Engagement Partner on the project. Mr. Rog is the National Director of our Sports and Entertainment Industry Practice and has over 18 years of financial, marketing and operations consulting experience in the public facilities industry. He has served a wide range of public and private clients throughout the world. His specific project experience includes professional sports facilities and franchises, convention centers and other special use projects. Mr. Rog has managed. numerous sports/recreation related consulting engagements including: City of Henderson — financial, economic/fiscal impact analyses, market feasibility and marketing strategy for recreational and other event use for proposed major league baseball spring training complex; Bridgewater. Township - planning assistance to Bridgewater Arena, a twin rink skating facility; Morris County feasibility of expanding the Mennen Arena, a twin rink ice skating facility; Maryland Stadium Authority - general financing strategy for Oriole Park at Camden Yards; City of Anaheim/California Angels lease renegotiation, stadium feasibility analysis and economic/fiscal impact analysis; City of Fort Lauderdale, Broward County, and Broward Economic Development Council evaluation and estimation of the market demand and financial feasibility of the proposed construction/renovation of Fort Lauderdale Spring Training Complex; New York State Urban Development Corporation — NorthAmericare Park market, financial and economic impact study (Buffalo Bisons); Philadelphia Eagles - economic/fiscal impact analysis and financial analysis of alternative stadium development scenarios; San Francisco 49ers - tax rate assessment study; Minnesota .Vikings - tax rate Deloitte 2, Touche LLP—Proposal to Serve the City ojHuntington Beach Pape 11 assessment study; Cuyahoga County - Jacobs Field/Gund Arena financial analysis of the arena and stadium; numerous planning and operations studies related to the arena, stadium and racetrack for the New Jersey Sports and Exposition Authority; Oakland -Alameda County Coliseum Commission/Golden State Warriors strategic planning for the proposed arena; and is familiar with all types of sports and recreation projects. Mr. Daniel S. Barrett will serve as the Project Manager. Mr. Barrett is the Western Region Sports and Entertainment Consulting Practice leader and is located in- our Los Angeles. office. Mr. Barrett has extensive consulting experience in the planning, development and operations of sports, recreation and entertainment facilities. Mr. Barrett has specific consulting experience in the following areas: market evaluation; "financial feasibility testing; strategic planning; identification of public and private financing sources; negotiating assistance; capital investment analysis; project budgeting; buy versus lease comparison; acquisition due diligence; workout strategies; property appraisal; and litigation support. Mr. Barrett has managed numerous sports/recreation related consulting engagements including:. City of Henderson — financial, economic/fiscal irnpact analyses, market feasibility and marketing strategy for recreational. and other event use for proposed major league baseball spring training complex;, City of Corona Recreation Center Market Analysis; City of Atlanta -Fulton County car rental tax .analysis, strategic. planning and economic/fiscal impact analysis for the .proposed arena; - City of Anaheim/California Angels lease renegotiation, stadium feasibility analysis and economic/fiscal. impact analysis; San Francisco 49ers - tax rate assessment study and economic/fiscal impact analysis;. City of Inglewood/Hollywood Park proposed -arena and stadium financial analysis and related negotiations; Philadelphia Eagles stadium lease analysis/valuation; Oakland -Alameda County Coliseum Corrimission/Golden State Warriors strategic planning for the proposed arena; City of Oklahoma City minor league baseball stadium lease negotiation advisory and arena market/financial feasibility analysis; Fresno Diamond Group limited analysis of the proposed AAA minor league baseball stadium; and is familiar with all types of sports and recreation projects. Mr. Leon Devaney will serve as the Senior Consultant for the project. Mr. Devaney is a Senior Consultant in the Los Angeles office of the D&T Realty Consulting Group. His responsibilities include assessing the market and financial feasibility for sport, convention, recreation and other public assembly facilities. In addition, he has performed economic and fiscal impact analyses for public 'assembly facilities and sports franchises throughout the U.S. Areas of special concentration include sports, recreation, convention centers, hospitality, - gaming and other entertainment land uses. Prior to joining D&T, Mr. Devaney was the Assistant Financial Officer at the University of Southern California Athletic Department. ' In this position, he was responsible for revenue and expense forecasting as well as department and team specific financial management. Previously, he was the Assistant Account Manager at a Southern California property management company where he prepared property performance reports, provided investment analysis, and assisted in managing the accounts of over 200 residential properties. In addition, we will add the appropriate staff as necessary. Deloitte & Touche LLP—Proposal to Serve the City of Huntington Beach Page 12 ___r 2 V. BUSINESS ARRANGEMENTS The fees.for professional services of this nature are difficult to estimate due to the uncertainty of the timing and,ultimate scope of services. Many tasks and sub -tasks are such that they may be completed quickly or after an extended period of time due to reliance on the interest, activities and performance of other parties. In addition, consulting. -and advising in. the strategy and execution of a unique project such as this requires highly specialized consulting skills, -expertise and experience. D&T is prepared to dedicate staff as the assignment dictates. In order to foster a lasting and productive working relationship with the City, D&T will offer to perform the time and expense work based on actual time spent at a discounted rate equivalent to 75 percent of our standard hourly rates for the team selected to serve on the engagement, plus reimbursement for all direct expenses incurred including travel and subsistence of our staff, subcontractors, word processing, postage and facsimile transmission. Based on the scope of work outlined herein, we estimate that the discounted professional fees and reimbursable expenses will total an amount not to exceed the following: ' ' . Project Phase Description Youth Sports Facility Project Only Phase 1 Market Analysis Gun Range Project Only Youth Sports Facility and Gun Range Project Phase 2 Financial Analysis Total Phase 1 Market Analysis Phase 2 Financial Analysis Total Phase 1 Market Analysis Phase 2 Financial Analysis Total Total Cost S20,000 510,000 530,000 $20,000 510,000 $30,000 527,500 520,000 $47,500 As the consulting services described above would be more efficiently completed on both projects concurrently, the total cost for a combined youth sports facility and gun range analysis would be less than if these projects were completed on a "stand alone" basis. If any task can be completed for less than the estimated amount, we shall bill the lesser amount. If, -and when, it appears that the fee for any portion of the services included herein will exceed the amounts indicated, we shall so advise the City and allow the City to re-examine the scope of such portion(s) of services, and the City shall instruct us as how to proceed. If at any time during our engagement it is Delolae & Touche LLP—Proposal to Serve the City of Huntington Beach Page 13 • determined that the engagement should not proceed, we shall promptly halt our activities and present an invoice for our services provided and expenses incurred to date. In no event will we extend the scope of service without your authorization. We are prepared to make reasonable efforts to commit staff members, along with appropriate senior management participation, to meet deadlines required by the City. Mr. Daniel S. Barrett will maintain day-to-day engagement responsibility, direct research staff, and participate -directly in key elements of strategic planning. During the course of our engagement, we anticipate a close working relationship . with the City and we will provide verbal reports of our � relevant progress, findings and observations, on a timely basis. We greatly appreciate the opportunity to be of service and assistance to .you in .these very - exciting projects. This proposal is subject to the attached terms and conditions. If you have any questions or comments, please contact Mr. Daniel S. Barrett at (213) 553-1605 or Mr. Leon Devaney at (213) 553-1630. Sincerel , ACCEPTED BY: TITLE: DATE: Deloltte & Touche LLP—Proposal to Serve the City of Huntington Beach Page 14 i Appendix A . Resumes STEWART ROG, CMC Principal - Parsippany EXPERIENCE Mr. Rog is the National Director of the Sports & Entertainment Industry Practice and has 18 years of financial, marketing and operations consulting experience. He has served a wide range of public and private clients throughout the world. Mr. Rog is nationally recognized in his field and has been a frequent guest speaker on the development and economic impact of public assembly facilities. His specific project experienceJinchides sports and recreation facilities, sports franchises, convention centers, and other special use projects. Recently completed and ongoing relevant experience includes: Sports & Entertainment ■ Arizona Office of Sports Development ■ . Bass PLC - Philadelphia Park m Bridgewater Township , ■ California Angels e City of Anaheim ■ City of Buffalo (Crossroads Arena) a City of Dallas (proposed arena) ■ City of Henderson • City of San Antonio in Cuyahoga County • Franklin County Convention Facilities Authority ® The Fresno Diamond Group Investor Group e Illinois Stadium Facilities Authority ■ Kansas City, Kansas v Maricopa County Sports Authority ■ Maryland Stadium Authority • %, fiami Sports and Exhibition Authority ® i%fid-Ohio Regional Planning Commission ■ Minnesota Vikings EDUCATION The Cooper Union, B.E. in Civil Engineering Cornell University, M.E. in Transportation Planning New York University, M.B.A. in Finance PROFESSIONAL AFFILIATIONS Institute of Management Consultants Certified Management Consultant ■ Morris County ■ New Hampshire Office .the. Legislative Budget Assistant ■ New Jersey. Sports and Exposition Authority ■ . New York Yankees -(spring training complex) ■ Oakland -Alameda County Coliseum o Owen Field, University. of Oklahoma ■ Philadelphia Eagles ■ Rock & Roll Hall of Fame in Cleveland ■ San Francisco 49ers ■ Santa Clara County Stadium Joint Powers Authority ■ Seattle Center ■ SMG ■ State of Maryland ■ Tampa Bay Lighting ■ University of Virginia • DANIEL S. BARRETT EXPERIENCE • . C Senior Manager - Los.Angeles Mr. Barrett is the Western Region Sports and Entertainment Consulting practice leader. He has extensive experience in the planning, development, and operations of sports and entertainment facilities. His primary responsibilities include assessing market and financial feasibility of arena and stadium development projects. Mr. Barrett has direct consulting experience in the following areas: market evaluation; financial feasibility testing; strategic planning; identification of public and private financing sources; economic/fiscal impact analysis; joint venture negotiation; capital investment analysis; project budgeting; buy versus lease comparison; acquisition due diligence (sports .°franchises); workout strategies; asset management; property appraisal; and litigation support. Mr. Barrett has experience analyzing numerous types of land uses including: arenas, stadiums, golf courses, theaters and other entertainment/recreational uses; resort, gaming and convention hotels; convention centers; resort -related housing; master planned mixed use developments; affordable, market rate and luxury permanent housing; neighborhood and regional retail centers; light industrial parks; .and office.. Mr.. Barrett has worked on engagements throughout California, Nevada, Washington, Arizona, Indiana, Illinois, Missouri, Georgia, Oklahoma, Ohio, Texas, Hawaii, Pennsylvania, British West Indies, Canada and Mexico.. Completed and ongoing relevant experience includes: Sports & Entertainment ■ City of San Diego ■ ■ Hawaii Convention Center Authority ■ ■ City of Compton ■ ■ City of Henderson ■ ■ City of Lake Elsinore ■ • City of Atlanta -Fulton County Recreation Authority ■ • Philadelphia Eagles ■ • San Francisco 49ers ■ City of Corona ■ ■ City of Thousand Oaks ■ ■ City of Oklahoma City ■ ■ The Los Angeles County Fair, Hotel & Exposition ■ Complex ■ • Oakland -Alameda County Coliseum ■ ■ City of Dallas ■ EDUCATION Tampa Bay Lightning (Ice Palace) Allen County War Memorial. Coliseum Edmonton Coliseum California Angels City of Anaheim City of Inglewood Franklin County Convention Facilities Authority Rose Bowl The Fresno Diamond Group Investor Group Oakland Athletics Investor Group National Hockey League Franchise Canadian Minor League Hockey Franchise Shoreline Amphitheater Horse Track/Motor Speedway Conversion Master of Business Administration, Real Estate/Finance, USC Bachelor of Arts, Economics/Intemational Studies, UCLA PROFESSIONAL AFFILIATIONS International Association of Auditorium Managers (LAW Urban Land Institute (ULI) USC Real Estate Alumni and Friends UCLA Alumni Association LEON G. DEVANEY Senior Consultant - Los Angeles Experience Mr. Devaney is a Senior Sports Consultant in the Los Angeles/Century.City office of.the.Deloitte.& Touche LLP Realty Consulting Group. His responsibilities include assessing the market and financial feasibility for sport, convention and other public assembly facilities. .In addition, he has performed several economic and fiscal impact analyses for public assembly facilities Q. sports franchises throughout the U.S. Areas of special concentration include sports, convention. centers, hospitality, gaming and other entertainment land uses. Prior to joining D&T, Mr. Devaney was the Assistant Financial Officer at the University of Southern California Athletic Department. In this position, he was responsible for revenue and expense forecasting as well as department and team specific financial management. Previously, he was the Assistant Account Manager at a Southern California. property management company where he prepared property performance reports, provided investment analysis, and assisted in managing the accounts of. over 200 residential properties. Recently completed and ongoing relevant experience includes: Sports & Entertainment 0 City of Corona N Fleet Bank ■ City of Atlanta -Fulton County Recreation Authority 0 Oakland -Alameda County Coliseum 0 Milwaukee Admirals ■ Rose Bowl 0 Franklin County Convention Facilities Authority 0 City of Oklahoma City 0 City of Seattle 0 Allen County War Memorial Coliseum ■ California Angels ■ City of Anaheim ■ City of Inglewood 9 Horse Track/Motor Speedway Conversion 0 The Fresno Diamond Group Investor Group ■ National Hockey League Franchise Education Master of Business Administration, Finance/Real Estate Valuation, USC Bachelor of Arts, Finance, USC Professional Affiliations 11SC Real Estate Alumni and Friends 1I J Appendix B Terms and Conditions m Client: City of Huntington Beach (City) Deloitte & Touche LLP ("D&T") will perform the services set forth in the engagement letter (the "Engagement Letter") of which these Terms and Conditions are a part (the "Services"), subject to the following: 1. Information and Data. D&T is entitled to assume, .-Without independent verification, the accuracy of all information and data.that the City provides to D&T.:All information:and.data to be supplied is complete and accurate to the best of the City's knowledge. D&T has used information and data fin-nished by others if D&T in good faith believed .such information and data to be reliable; however, D&T shall not be responsible for, and D&T shall provide no assurance regarding, the accuracy of any such information or data. D&T shall not assume any responsibility for any financial and tax reporting with respect to the properties covered by D&T's services. The City shall be responsible for all financial statement and tax reporting with respect to such properties. D&T shall be providing advice and recommendations to.the,City; however, all decisions in connection with the implementation of such advice and recommendations shall be the City's responsibility. D&T shall have no responsibility for any decisions .made 1by the City relating to D&T's services. D&T shall have no responsibility for any.assumptions provided by the City, which assumptions shall be the City's responsibility. D&T shall have no responsibility to address any legal matters or questions of law. 2. Asset Descriptions. To the extent that -this engagement includes, assets, properties or business interests, D&T shall assume no responsibility for matters of legal description or title, and D&T shall be entitled to make, and shall have no responsibility for, the following assumptions :about the subject assets, properties, or business interests: title is good and marketable; the subject assets, properties, or business interests are free and clear of any and all liens or encumbrances; there is full compliance with all applicable Federal, state, local and national regulations and laws (including, without limitation, zoning regulations); there are no encroachments; the land is free of adverse soil conditions which would prohibit development of the property to its highest and best use; there is responsible ownership and competent management with respect to the subject assets, properties, or business interests; all required licenses, certificates of occupancy, consents, or legislative or administrative authority from any Federal, state, local or national government, private entity or organization have been or can be - obtained or renewed for any use on which D&T's services are to be based; and any'plot plans, sketches, drawings or other exhibits that may be included in D&T's report, if any, are included only to assist the reader in visualizing the property, and D&T will not make, and shall not assume any responsibility for, any survey. • Unseen Conditions D&T shall not assume any responsibility for identifying structural conditions. D&T's services will be based upon surface rights only (as applicable), and no analysis «ill be made of the subsurface or of hazardous waste conditions, if any. D&T's services E;hall not take into consideration the possibility of the existence of asbestos, PCB transformers, or � (Itllcr toxic hazardous or contaminated substances or underground storage tanks, or the cost of rcmnval. D&T is not qualified to detect, and shall not be responsible for detecting, such 411htitances. �h_ 4. Reports. Any reports prepared by D&T are valid only when presented in their entirety and only for the purpose . stated therein. It is expressly understood that (a) D&T's reports, recommendations, analyses and conclusions, if any, do not, in whole or in part, constitute a fairness or solvency opinion and (b) D&T will not perform any review, audit or. other attestation procedures with respect to financial information as defined by the American. Institute. of Certified Public Accountants and will not issue any opinion, reportor other form of assurance with respect to any financial information. D&T's reports may- not .be used,. in whole or in. part, in any financing document associated with the proposed projects. 5. Confidentiality. It is understood and agreed that all work product :resulting from D&T's services shall remain the exclusive property of D&T and that the City will preserve the confidentiality of the format and contents of any reports, analyses or other documents prepared by D&T, except as required by law. The City agrees not to reference D&T's name or any reports,, analyses or other documents prepared by.D&T, in whole or in part, in any document distributed to third parties without D&T's prior written consent. The City agrees that any reports, analyses or other documents prepared by D&T will be used only in compliance with these Terms and Conditions and applicable laws and regulations. D&T . will preserve the confidential nature of information received from the City in accordance with D&T..'s :established policies and practices. 6. Property. To the extent that D&T utilizes any of its property (including, without limitation, any hardware or software) in connection with its services, such property shall remain the property of D&T, and the City shall not acquire any right or interest in such property. D&T shall have ownership (including, without limitation, copyright ownership) and all rights to use and disclose its ideas, concepts, know-how, methods, techniques, processes and skills, and adaptations thereof (including,. without limitation, generalized features of the sequence, structure and organization of any works of authorship) in conducting its business, and the City shall not assert or cause to be asserted against D&T or its personnel any prohibition or restraint from so doing. 7. Limitation on Warranties. This is a professional services agreement. D&T represents and warrants that it shall provide the services in good faith. D&T disclaims all other representations and warranties, whether express, implied or otherwise, including, without limitation, warranties of merchantability and fitness for a particular purpose. S. Indemnification. The City shall indemnify and hold harmless D&T, its partners, principals and employees from and against any and all actions, losses, damages, claims, liabilities, costs and expenses (including, without limitation, reasonable legal fees and expenses) brought against, paid or incurred by any of them at any time in any way arising out of or relating to D&T's services, except to the extent finally judicially determined to have resulted from the intentional. misconduct of D&T. 9. Limitation on Damages. D&T, its partners, principals and employees shall not be liable to the City for any losses, damages, claims, liabilities, costs or expenses in any way arising out of or • relating to this engagement for an aggregate amount in excess of the fees paid by the City to D&T for its services. In no event shall D&T, its partners, principals or employees be liable for consequential, special, 'indirect, incidental, punitive or exemplary loss, damage, cost or expense (including, without limitation, lost profits and opportunity costs); The provisions of paragraph 8 and this paragraph 9 shall apply regardless of the form of action, whether in contract, statute, tort (including, -.without limitation, negligence), or otherwise, and shall survive. the completion or termination of this engagement. 10. Subsequent Work. _D&T, by reason of the services, is`not required to fumish -additional work or services, or to give testimony, or to be in attendance in court with- reference -to. the assets, properties, or business interests in question. D&T will have no responsibility- to update any report, analysis or other document relating to its services for any events or circumstances occurring subsequent to the date of such report, analysis or other document. 11. Cooperation. The City shall cooperate with D&T in connection .with the performance by D&T of its services, including providing D&T with reasonable and timely access to the City's information, data and personnel. 12. Non -Exclusivity. Nothing in this report, including these.Terms and Conditions,_.: shall be construed as precluding or limiting in any way the right of D&T to provide consulting, auditing. or other services of any kind or nature whatsoever to any person ,or entity as D&T in its sole discretion deems appropriate. 13. Force Maieure. D&T shall not be liable for any delays or failures resulting from circumstances or causes beyond its reasonable control, including, without limitation, fire or other casualty, act of God, strike or labor dispute, war or other violence, or any law, order or requirement of any governmental agency or authority. 14. Independent Contractor. D&T is an independent contractor and D&T's compensation is not contingent in any way upon its conclusions or recommendations. Although it is not D&T's normal practice, D&T reserves the right to use subcontractors. 15. Complete Agreement. This Letter, including these Terms and Conditions, constitutes the entire agreement between the City and D&T with respect to the subject matter thereof and hereof, and supersedes all other oral or written representations, understandings and agreements between the City and D&T relating to the subject matter thereof and hereof. This Letter, including these._ Terms and Conditions, cannot be changed, except by written instrument signed by both the City and D&T. This Letter, including these Terms and Conditions, shall be binding on the City and D&T, and the City's and D&T's permitted successors and assigns; however, neither the City nor D&T may assign this Letter, including these Terms and Conditions, without the prior written consent of the other, except that the City and D&T may assign this Letter, including these Terms and Conditions, to any successor to all or substantially all of the business or assets of such party. • 16. Inconsistencies: In the event of any conflict or inconsistency betwedn the provisions set forth in this Letter and these Terms and Conditions, the provisions of these Terms and Conditions shall govern. loom • Delolfte & Touche LLP June 27, 1997 0 Mr. Richard Amadril Central Services Manager City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Dear Mr. Amadril: m 1000 Wilshire Boulevard Telephone: (213) 688-0800 Los Angeles, California 90017-2472 Facsimile: (213) 688-0100 Deloitte & Touche LLP (D&T) is pleased to present this proposal to provide consulting services to the City of Huntington Beach (City) in connection with a potential youth sports facility and gun range. It is our understanding that the City is interested in the market and financial feasibility for each of these capital projects. The youth sports facility is anticipated to consist of sports fields, skating rinks and other recreation facilities. The gun range is anticipated to consist of both pistol and rifle bays to be used for law enforcement training and public purposes. It is anticipated that the City would own, operate and manage both facilities and that revenue generated by these facilities would fund operating and maintenance expenses .and debt service requirements. Based on our understanding of your needs, we have assembled a project team with extensive experience in the planning and development of sports and recreation oriented facilities. Our team provides an efficient combination of local and regional presence, supplemented by specialized technical resources and substantial experience with similar projects.. Our project team has also formulated and refined a proven and focused approach to meet your objectives, and provide practical, implementable results which reflect development realities and not just theoretical research and national statistics. Based on our understanding of your needs, D&T proposes to provide you with services in the areas described below (for each capital project): • Phase I: Market Analysis • Phase II: Financial Analysis. Our project team has a number of unique strengths that distinguish us from other firms. • Ve are recognized for our objectivity and national eminence. Given the nature of this study, it is imperative that the consultant have an image of eminence and objectivity. Our project team is nationally recognized for expertise in all aspects of sports and recreation. As a firm, D&T has made a commitment to providing services to the industry. Furthermore, as a "Big Six" professional services firm, D&T has a long track record of objectivity. • Our proiect experience is directy applicable. D&T has extensive experience in the planning, financing, development and operations of sports and recreation facilities. The prior Aelcitt9Taeche 2029 Century Park East. Suite 300, Los Angeles. California 90067-2900 Telephone: (310) 551.6700 Facsimile: (310) 284-9029 T,o�ihmatsu One World Trade Center, Suite 2200. Long Beach, California 90831-2200 Telephone: (31014SS-Waa Facsllme: p10) 437-47U hlle'! 1tinnal 21550Oxnard Street, Suite 800, Woodland Hills, California 91367-7125 Tel Mr. Richard Amadril June 27, 1997 Page 2 work of our project team demonstrates experience directly applicable to this engagement. D&T's recent project experience is summarized as follows: Recent Project Experience Client Experience City of Henderson Market, financial and economic/fiscal impact analyses for proposed 24-61d major league baseball spring training complex. Marketing strategy for recreational and other event uses of the proposed complex. City of Encinitas Baker Ranch Golf Course City of Thousand Oaks Bridgewater Township Morris County Babson University City of Corona V City of Oklahoma City City of Fort Lauderdale, Broward County, and Broward Economic Development Council City of Inglewood :-.Cuyahoga County (Cleveland Indians/ Cavaliers) Market and financial feasibility for proposed golf course to be developed in Encinitas, California. Joint venture deal structure assistance for proposed golf course in Orange County, California. Assisted in identifying potential operators and financing partners. , Limited market and financial analyses of the proposed Hill Canyon golf course in Thousand Oaks, California. Evaluated project delivery alternatives Planning assistance to Bridgewater Arena, a twin rink skating facility in Bridgewater, New Jersey Evaluation of feasibility of expanding the Mennen Arena, a twin rink ice skating facility in Morris County, New Jersey. Market, financial and operating analysis of the Babson Recreation Center. Market analysis for proposed community ice/roller skating and recreation center. Feasibility and lease studies for the proposed arena and minor league baseball stadium. Evaluation and estimation of the market demand and financial feasibility of the proposed construction/renovation of Fort Lauderdale Spring Training Complex. Financing strategy for the proposed stadium and arena renovation/construction. Financial analysis of Jacobs Field and Gund Arena. Jersey Sports and Exposition Authority Numerous planning and operations studies related to the owlands Complex) . stadium, racetrack and arena. Chy of Anaheim (California Angels) Feasibility, lease and financing strategy for the proposed baseball stadium. Mr. Richard Amadril _June 27, 1997 Page 3 W • Our team is comprised of leading industry specialists. Our project team has unsurpassed national and international experience conducting operations, feasibility, lease, economic impact and capital financing studies for sports and recreation oriented facilities. We have assigned the firm's leading sports . and recreation industry consultants to this project. We believe that the qualifications and experience of our team provide us with the understanding, insight and creativity required to help you make this project a success. J L J We have a solid record of high -quality, results -oriented planning for owners, managers - planners of: rq C.� t4 fJ • Recreational Facilities • Arenas & Coliseums • Football & Baseball Stadiums • Convention Centers • Performing Arts & Civic Centers • Casinos &; Racetracks • Professional Franchises/Leagues • Museums & Exhibits • Hotels & Resorts • Olympics • Expositions & Fairs • Golf Courses As an independent, third party consultant, we have the ability to assist you in a variety of areas. We have performed numerous consulting engagements involving: • Market Demand • Financial Feasibility • Facility Expansion/Renovation • Financing Strategies/Plans (Public & Private) • Tax Revenue Estimates • Revenue Enhancement Strategies • Departmental Reorganization • Operations Turnaround & Cost Reduction • Negotiation Advisory V • Business & Strategic Planning. • Economic/Fiscal Impact Studies • Sports Authority Advisory • Facility Reuse Analysis • Facility & Franchise Valuations • Premium Seating Analysis • Personnel Administration • Computer Systems Planning • Tax Increment Estimates. . We appreciate the opportunity'to submit a proposal for this very important project. Please call Mr. Daniel S. Barrett at (310) 551-6752 or Mr. Leon Devaney at (213) 553-1630 if yo''have any questions or comments regarding this proposal. I. INTRODUCTION Presented .below is a discussion summarizing the Sports and Recreation Industry and our understanding of the assignment at hand. THE SPORTS AND RECREATION INDUSTRY J - The Sports and Recreation Industry is a highly specialized and complex industry. Successful consulting to this industry requires in-depth knowledge and extensive experience in a broad range of areas. Sports and recreation consulting encompasses not only diverse organizational and technical issues, but many projects must be performed under public scrutin in a complex marketing, financial and statutory environment. Day-to-day project work and the results of all project activities must be consistent with industry practices and procedures. Skills in a variety of functional and technical areas must be exercised to support the range of services required by the industry. ' UNDERSTANDING OF THE ASSIGNMENT The City of Huntington Beach (City) is currently evaluating the planning issues related to the development and operation of a youth 'sports facility and gun range. As currently envisioned, the youth sports facility will be located in the undeveloped portion of Huntington Central Park and will include sports fields, skating rinks and other recreation facilities. The gun range will be located on one of three potential sites within the City and is anticipated to consist of both pistol and rifle bays to be used for law enforcement training and public purposes. In order to evaluate the development and operational issues surrounding these projects, the City would like to retain a qualified consulting firm with experience in evaluating the market and financial feasibility of similar facilities. Based upon our understanding of your needs, D&T proposes to provide you with services in the areas described below. Phase I: Market Analysis Phase II: Financial Analysis It is important to note that market and financial analyses would be completed for each of the proposed projects. D&T would expect si c 'nteraction with, and input from, r=presentaef the Ci during the course of the studies, as described in the attached scope of cervices. We will keep the City appraised of our progress on a continual verbal basis and through ad hoc meetings. This communication will provide flexibility to review the study's results, thereby eliminating any surprise findings or conclusions. It should be noted that the v:hedule for this type of engagement is difficult to estimate as many of the sub -tasks are 11cpendent on the cooperation of other individuals. il,, Mlle H. SCOPE OF SERVICES Based on our understanding' of the City's needs, we have developed a detailed work plan ; consisting of two phases. The following scope of services provides an overview of the work plan that would likely be employed for the proposed projects. It is important to note that because a separate analysis would need to be completed for each of the two -proposed projects, the specific tasks presented below will be completed as appropriate and-necossary. J PHASE I - MARKET ANALYSIS The feasibility of the proposed facilities depends upon many factors, including: • Market demographic characteristics • Potential utilization of the facilities • Type and mix of events,that can be attracted to the venues Existing competing and/or complementary facilities • Performance of comparable facilities in other markets Our analysis in this phase would consider each of these factors. We will use data collected specifically for this engagement and additional market and industry data that we maintain in our `files, as necessary. Our analysis will assess the local need and opportunity for the facility in the arket area. The potential tasks associated with -this phase are as follows: Cask I -Analysis of Local anti Regional MarketArea n this task, we will analyze the current local market area in terms of base demographic market :formation, as well as existing competitive facilities. This information will assist us in `ctermining existing characteristics and trends that may influence the potential success of the projects. Specifically, we will: .1 Analyze demographics of the primary geographic area, including: • Market Area and Location ' • Population Density • Per Capita and Family Income Parameters • Age Distribution of the Population • Other Key Demographic Characteristics, as appropriate 2 Analyze the existing recreation and gun range facilities in the market area to understand the current market competition. This will be accomplished through interviews with local facility managers and an analysis of historical utilization data from these facilities (as available). Utilization statistics to be compiled will depend on. the facilities and may include: I a co E c ca to • Major Users Wrie & Touche LLP—Proposal to Serve the City of Huntington Beach Paoo 9 12 • Free (Public) Skating • Contract Rental • Type of Events • Attendance • Other Facility Utilization. Statistics Task 2 -Analysis of Comparable Facilities J J In this task, we will identify and analyze those facilities which will be most comparable to the J proposed projects. The data gathered on these facilities will provide D&T with a range of "base line" performance measures for each type of facility, as well as identify potential strategic opportunities and hazards. The analysis of comparable facilities includes the following sub - tasks: 2.1 Identify three to five existing facilities regionally or nationwide which may be comparable to each of the proposed facilities. 2.2 Collect key information for the comparable facilities and market areas, as available. Characteristics to be analyzed will depend on the facility and may include: • Demographic Characteristics • Size • Age • Seating Capacity • Utilization - Major Users - Free (Public) Skating - Contract Rental - Type of Events - Annual Events by Type - Attendance by Event Type • Market Share • Pricing Characteristics' • Physical Condition-' � • Rental/User Fees Due to the nature of our sports and recreation industry consulting practice, some of this information will already be contained in our database of facility utilization and operational characteristics of various sports and entertainment facilities. 2.3 Analyze the data to identify the degree to which the comparable facilities exhibit characteristics similar to what might reasonably be expected for each of the proposed facilities. Deloltre & Touche LLP— Provosa[ to Serve the City ofHuntineton Beach P— 2 /: Task 3 - Estimate the Potential Market Demand W Based upon the results of the research tasks completed above, we will prepare estimates of the potential market demand for each of the facilities. Specifically, we will estimate the usage, number of events and annual attendance. 3.1 Evaluate the anticipated usage and demand for each of the proposed facilities from potential users. Specific usage and demand willdepend on the facilities and may include the following: • Recreational Users • Leagues • Organized Competitions • Community Groups • Sporting/Recreational Events • Police Training • Other Potential Users These estimates will allow D&T to estimate the overall utilization for each of the facilities. Task 4 - Determine Facility SizingXonfiguration Characteristics During this portion of the work effort, we will evaluate key facility sizing/configuration characteristics for each of the facilities .based on the results of the market demand analysis. Facility sizing/configuration characteristics will depend on the facility and may include the following: • Total Capacity • Number of Skating Sheets and Surface Types • Number of Fields • Gun Range Configuration • Parking Requirements Other Amenities (e.g. ,Concessions, Equipment Shops and Entertainment Facilities) We anticipate that the City will provide construction cost estimates for the facilities. . Task S - Report Major Findings Upon completion of this portion of the analysis, we will conduct an interim status meeting with appropriate representatives of the City to present our findings to date. We would expect to deliver our findings in a preliminary draft report. The delivery of final reports will be completed as directed by the City. PILkSE II - FINANCIAL ANALYSIS Should the City and D&T jointly reach a decision to continue with the analysis of one, or both, of the proposed projects based upon the preliminary results of the market analysis, D&T would continue with the financial analysis portion of the study. As part of this phase, D&T also would conduct additional in-depth research into each of the facilities' specific revenues and expenses. The specific tasks of this portion of the analysis are as follows:., Task l - Develop a Financial Operating Profile for Each Facility The objective of the next portion of this study is to assist,you in the creation of an operating financial profile for each of the facilities for the first _five years of operation, including operating revenues and expenses. A cash flow model will be developed to allow for a number of alternative development scenarios. 1.1 Review and utilize the D&T database of operating revenues and expenses for comparable facilities. 1.2 Based on the comparable financial information obtained in previous tasks, we will assist you in building a financial model to estimate revenue and operating costs for each of the facilities for the first five years of operation. 1.3 Evaluate major revenue items for each of the facilities. Estimated revenues will depend on the facility and may include the following: • Facility Rental/Fees • Admission Charges • Equipment Rental • Lessons and Instructions • Group Parties/Activities • ArcadeNideo Game Income (if appropriate) • Concessions • Pro Shop • Parking Meters • Local Auto Dealers • Other 1.4 Assist you in the development of an operating profile for. each of the facilities based on expected usage, planned events, maintenance requirements, advertising and marketing plans, utility usage, and general expenses. D&T expects to work closely with the City in order to develop these assumptions. 1.5 Evaluate operating expenses for each of the facilities. Projected expenses will depend on the facilities and may include the following: • Salaries[Wages and Benefits (Full and Part -Time) • Utilities • Insurance • Concession Cost of Sales -k- rN • Repairs and Maintenance • Advertising and Promotions • General Administration • Capital Replacement • Management Fees, as appropriate • Parking/Security/Admissions • Other N In addition to utilizing information within our' internal database and collected during our analysis of comparable facilities, we antici ate input from the City in order to develop operating expense projections. 1.6 Perform sensitivity analyses on key operating variables for each of the faciliti s. Task 2 - Evaluate Financing for the Proposed Projects Based on the anticipated operating profile for each of the facilities, we will evaluate the anticipated financing structures. Specific sub -tasks will include the following: 2.1 Based on the anticipated operations for each of the facilities, estimate the surplus or deficit, before debt service. 2.2 Prepare preliminary sources/uses of funds for each of the facilities (construction costs to be provided by the City). Estimate additional financing requirements and related debt service requirements. 2.3 Prepare a construction period flow of funds (to be provided by the City) based on the . proposed financing structures. 2.4 Based on the anticipated operations of the facilities, estimate operating surplus or deficit, after debt service. 2.5 Perform sensitivity analyses on key financing variables. We anticipate working closely with members of the City to assist in developing an appropriate financing structure for the proposed projects. Task 3 - Report Major Findings Upon completion of this portion of the analysis, we will conduct an interim status meeting with appropriate representatives of the City to present our findings to date. We would expect to deliver our findings in a preliminary draft report. The delivery of final reports will be completed as directed by the City. These reports shall not be used in any matters pertaining to any real estate or other securities offering, registration or exemption with any state or with the federal Securities and Exchange Commission. �J Ui III. COMPLETION SCHEDULE Based on the proposed work plan and our experience conducting similar engagements, we estimate that the analyses for both facilities can be corripleted within six to eight.weeks from the time we receive your authorization to proceed. Our anticipated schedule for performing this engagement would be as follows: _ Project Schedide J Activity Week 1 2 3 4 5 6 7 Phase I - Market Analysis Task 1- Analysis of Local and Regional Market Area Task 2 - Analysis of Comparable Facilities , Task 3 - Estimate the Potential Market Demand Task 4 - Determine Facility Sizing/Configuration and Characteristics Task 5 - Report Major Findings Phase II: Financial Analysis Task 1 - Develop a Financial Operating Profile for each Facility Task 2 - Evaluate Financing for the Proposed Projects Task 3 - Report Major Findings We qaqSjaate working closely with the City in the performance of this engagement. We will keep you appraise o our progress on a continual verbal basis and through ad hoc meetings. This communication will provide flexibility to review the study's results, thereby eliminating any surprise findings or conclusions. This timeline is dependent on the cooperation of the City and other key parties and, as such, represents only an estimate r uetoitte do Touch eLLP—Proposal to Serve the City ofHuntinVon Beach [A IV. QUALIFICATIONS OVERVIEW The following section presents the qualifications of the firm and the project staff. In addition, we have provided a summary of relevant projects and references. Attached to this proposal is a summary of our qualifications to serve the industry. Deloitte & Touche LLP D&T is a multinational public accounting and consulting firm serving clients in business, industry and government. D&T has 100 offices in the United States. An equal opportunity employer with an affirmative action plan in force, D&T has a full-time U.S. staff of over 18,000, including more than 1,500 partners. Worldwide, D&T is located in over 120 countries with in excess of 59,000 professionals. D&T has a solid record of high -quality, results -oriented planning, financial feasibility, marketing, and internal operations work for owners, managers and planners of sports facilities, sports franchises, sports leagues, convention centers, hotels, resorts, Olympics, expositions, fairs, entertainment and recreation facilities. We have performed hundreds of consulting engagements involving demand analysis, business and strategic planning, feasibility studies, lease analyses, financial studies, operations improvement, organization analysis; personnel administration, computer systems planning, systems development and systems implementation. Yz Our extensive consulting experience has given us numerous local and national contacts in the zl Sports and Entertainment Industry, sources that are invaluable and, to a large extent, unique. We have working relationships with private facility operators and financiers, public facility aperators, event promoters, concessions operators, scoreboard manufacturers, franchise owners .tmd operators, public underwriters and facility architects and engineers. In addition, our ptont�Pcrience encompasses many facets of facility operations, including financial systems and rols �.., ,promotions and advertising, market research and event planning and reporting. I have provided a wide range of services to the Sports and Entertainment Industry. Our 'ice record consistently demonstrates innovative and implementation oriented solutions. Eknted below is a summary list of our recent project experience and client references: LLP— Pinnncnl In .Cnrvu lhn f'lry of Flnntlnolnn Ran.•h — - n--- Adlbk - - —. Recent Project Experience Client Experience City of Henderson Market, financial and economic/fiscal impact analyses for proposed 24-field major league baseball spring training complex. Marketing strategy for recreational and other event uses of the proposed complex. City of Encinitas Baker Ranch Golf Course City of Thousand Oaks Bridgewater Township Morris County Babson University City of Corona City of Oklahoma City City of Fort Lauderdale, Broward County, and Broward Economic Development Council City of Inglewood Cuyahoga County (Cleveland Indians/ Cavaliers) J Market and fmancial feasibility for proposed golf course to be developed in Encinitas, California. Joint venture deal structure assistance for proposed golf course in Orange County, California. Assisted in identifying potential operators and financing partners. Limited market and financial analyses of the proposed Hill Canyon golf course in Thousand Oaks, California. Evaluated project delivery alternatives Planning assistance to Bridgewater Arena, a twin rink skating facility in Bridgewater, New Jersey Evaluation of feasibility of expanding the Mennen Arena, a twin rink ice skating facility in Morris County, New Jersey. Market, financial and operating analysis of the Babson Recreation Center. Market analysis for proposed community ice/roller skating and recreation center. Feasibility and lease studies for the proposed arena and minor league baseball stadium. Evaluation and estimation of the market demand and financial feasibility of the proposed construction/renovation of Fort Lauderdale Spring Training Complex. Financing strategy for the proposed stadium and arena renovation/construction. Financial analysis of Jacobs Field and Gund Arena. New Jersey Sports and Exposition Authority Numerous planning and operations studies related to the (Meadowlands Complex) stadium, racetrack and arena. City of Anaheim (California Angels) Feasibility, lease and financing strategy for the proposed baseball stadium. �Q I Client References U Client Experience City of Anaheim Numerous feasibility, financing and Mr. James D. Ruth economic studies related to the proposed City Manager stadium for the California Angels. 200 S. Anaheim Blvd. Anaheim, CA 92805 (714) 254-5165 s J J City of Inglewood J 'Strategic planning consulting services Mr. Paul D. Eckles / related to the development and financing Former City Manager for the proposed stadium and arena. One Manchester Boulevard Inglewood, CA 90301 (310) 215-3751 Oakland -Alameda County Coliseum Commission Mr. Timothy F. Preece Former Treasurer Board of Directors/Executive Staff 7000 Coliseum Way Oakland, CA 94621 (510) 820-5689 Cuyahoga County (Cleveland) Mr. Dave Abbott County Administrator 1219 Ontario Street Cleveland, Ohio 44113 (214)658-7094 Dallas Convention Center Mr. Frank Poe . Chief Executive Officer 650 South Griffin Street Dallas, TX 75202 (214) 658-7094 New Jersey Sports and Exposition Authority Mr. Dennis Robinson Executive Vice President for Finance and Administration 50 Route 120 Rutherford, NJ 07073 (201) 935-8500 Allen County War Memorial Coliseum iv1r. Randy L. Brown General Manager 4000 Parnell Avenue Fort Wayne, Indiana 46805 (219) 482-9502 Feasibility, financing and negotiating advisory'related to the proposed arena for the Golden State Warriors. Financial analysis for Jacobs Field and Gund Arena. Numerous feasibility, financing and economic studies related to the proposed arena for the Dallas Mavericks and Dallas Stars. Numerous feasibility, financing and economic studies. related to the stadium, arena and other public assembly facilities. Arena expansion feasibility study and operations review. Deloitte & Touche LLP—Proposal to Serve the City of Huntington Beach Page 10 PROJECT STAFFING The professionals to be assigned to this engagement for the City were selected on the basis of the technical skills and industry experience required for a project of this nature. The selection of the project team was based on satisfying the project's needs in the most practical, timely and cost effective manner. To this end, D&T has emphasized forming a project team which brings.. together the proper mix of industry experience and techn_ical•skills. J Our experience has shown that strong project management is essential on engagements of this type. Project management begins with the activities discussed in the workplan described earlier in this proposal. As the engagement progresses, ongoing communication and coordination with the Project Manager will be key to the engagement's success. Our project management approach includes: • Designating an Engagement Partner as the individual responsible for all aspects of the engagement. • Designating a Project Manager as the individual responsible for the day-to-day project tasks. • Providing interim status meetings to review the progress and results of our analysis. • Immediate communication of problems or issues requiring fast action or response. • Review of results and project deliverables before they are finalized. The following paragraphs provide descriptions of the relevant experience of our proposed project team members (see Appendix A for individual resumes). The staff described below will be available for this project based on current and anticipated schedules. Mr. Stewart Rog, CMC will serve as the Engagement Partner on the project. Mr. Rog is the National Director of our Sports and Entertainment Industry Practice and has over 18 years of financial, marketing and operations consulting experience in the public facilities industry. He has served a wide range of public and private clients throughout the world. His specific project experience includes professional sports facilities and franchises, convention centers and other special use projects. Mr. Rog has managed. numerous sports/recreation related consulting engagements including: City of Henderson — financial, economic/fiscal impact analyses, :market feasibility and marketing strategy for recreational and other event use for proposed major league baseball spring training complex; Bridgewater. Township - planning assistance to Bridgewater Arena, a twin rink skating facility; Morris County - feasibility of expanding the Mennen Arena, a twin rink ice skating facility; Maryland Stadium Authority - general financing strategy for Oriole Park at Camden Yards; City of Anaheim/California Angels lease renegotiation, stadium feasibility analysis and economic/fiscal impact analysis; City of Fort Lauderdale, Broward County, and Broward Economic Development Council evaluation and estimation of the market demand and financial feasibility of the proposed construction/renovation of Fort Lauderdale Spring Training Complex; New York State Urban Development Corporation — Nord Americare Park market, financial and economic impact study (Buffalo Bisons); Philadelphia Eagles - economic/fiscal impact analysis and financial analysis of alternative stadium development scenarios; San Francisco 49ers - tax rate assessment study; Minnesota Vikings - tax rate assessment study; Cuyahoga County - Jacobs Field/Gund Arena financial analysis of the arena and stadium; numerous planning and operations studies related to the arena, stadium and racetrack for the New Jersey Sports and Exposition Authority; Oakland -Alameda County Coliseum Commission/Golden State Warriors strategic planning for the proposed arena; and _is familiar with all types of sports and recreation projects. Mr. Daniel S. Barrett will serve as the Project Manager. Mr. Barrett is the Western Region Sports and Entertainment Consulting Practice leader and is located in our Los Angeles office. Mr. Barrett has extensive consulting experience in the planning, development and operations of sports, recreation and entertainment facilities. Mr. Barrett has specific consulting experience in the following areas: market evaluation; financial feasibility testing; strategic planning; identification of public and private financing sources; negotiating assistance; capital investment analysis; project budgeting; buy versus lease comparison; acquisition due diligence; workout strategies; property appraisal; and litigation support. Mr. Barrett has managed numerous sports/recreation related consulting engagements including: City of Henderson — financial, economic/fiscal impact analyses, market feasibility and marketing strategy for recreational and other event use for proposed major league baseball spring training complex;, City of Corona Recreation Center Market Analysis; City of Atlanta -Fulton County car rental tax analysis, strategic planning and economic/fiscal impact analysis for the proposed arena; City of Anaheim/California Angels lease renegotiation, stadium feasibility analysis and economic/fiscal. impact analysis; San Francisco 49ers - tax rate assessment study and economic/fiscal impact analysis; City of Inglewood/Hollywood Park proposed arena and stadium financial analysis and related negotiations; Philadelphia Eagles stadium lease analysis/valuation; Oakland -Alameda County Coliseum Commission/Golden State Warriors strategic planning for the proposed arena; City of Oklahoma City minor league baseball stadium lease negotiation advisory and arena market/financial feasibility analysis; Fresno Diamond Group limited analysis of the proposed AAA minor league baseball stadium; and is familiar with all types of sports and recreation projects. Mr. Leon Devaney will serve as the Senior Consultant for the project. Mr. Devaney is a Senior Consultant in the Los Angeles office of the D&T Realty Consulting Group. His responsibilities include assessing the market and financial feasibility for sport, convention, recreation and other public assembly facilities. In addition, he has performed economic and fiscal impact analyses for public assembly facilities and sports franchises throughout the U.S. Areas of special concentration include sports, recreation, convention centers, hospitality, gaming and other entertainment land uses. Prior to joining D&T, Mr. Devaney was the Assistant Financial Officer at the University of Southern California Athletic Department. In this position, he was responsible for revenue and expense forecasting as well as department and team specific financial management. Previously, he was the Assistant Account Manager at a Southern California property management company where he prepared property performance reports, provided investment analysis, and assisted in managing the accounts of over 200 residential properties. In addition, we will add the appropriate staff as necessary. Deloitte & Touche LLP— Proposal to Serve the City of Huntington Beach Page 12 NOW V. BUSINESS ARRANGEMENTS The fees for professional services of this nature are difficult to estimate due to the uncertainty of the timing and ultimate scope of services. Many tasks and sub -tasks are such that they may be completed quickly or after an extended period of time due to reliance on the interest, activities and performance of other parties. In addition, consulting. -and advising in the strategy and execution of a unique project such as this requires highly specialized consulting skills, expertise and experience. D&T is prepared to dedicate staff as the assignment dictates. In order to foster a lasting and productive working relationship with the City, D&T will offer to perform the time and expense work based on actual time spent at a discounted rate equivalent to 75 percent of our standard hourly rates for the team selected to serve on the engagement, plus reimbursement for all direct expenses incurred including travel and subsistence of our staff, subcontractors, word processing, postage and facsimile transmission. Based on the scope of work outlined herein, we estimate that the discounted professional fees and reimbursable expenses will total an amount not to exceed the following: Project Phase Description Youth Sports Facility Project Only Phase 1 Market Analysis Gun Range Project Only Youth Sports Facility and Gun.Range Project Phase 2 Financial Analysis Total Phase 1 Market Analysis Phase 2 Financial Analysis Total Phase 1 Market Analysis Phase 2 Financial Analysis Total Total Cost 520,000 5101000 530,000 520,000 510.000 530,000 S279500 $20,000 547,500 As the consulting services described above would be more efficiently completed on both projects concurrently, the total cost for a combined youth sports facility and gun range analysis would be less than if these projects were completed on a "stand alone" basis. If any task can be completed for less than the estimated amount, we shall bill the lesser amount. If, and when, it appears that the fee for any portion of the services included herein will exceed the amounts indicated, we shall so advise the City and allow the City to re-examine the scope of such portion(s) of services, and the Ciry shall instruct us as how to proceed. If at any time during our engagement it is Ddoiae & Touche LLP —Proposal to Serve the City of Huntington Beach Page 13 • determined that the engagement should not proceed, we shall promptly halt our activities and present an invoice for our services provided and expenses incurred to date. In no event will we extend the scope of service without your authorization. We are prepared to make reasonable efforts to commit staff members, along with appropriate senior management participation, to meet deadlines required by the City. Mr. Daniel S. Barrett will maintain day-to-day engagement responsibility, direct research staff, and participate directly in key elements of strategic planning. During the course of our engagement, we anticipate a close working relationship with the City and we will provide verbal reports of our relevant progress, findings and observations, on a timely basis. We greatly appreciate the opportunity to be of service and assistance to you in these very - exciting projects. This proposal is subject to the attached terms and conditions. If you have any questions or comments, please contact Mr. Daniel S. Barrett at (213) 553-1605 or Mr. Leon Devaney at (213) 553-1630. Sincerely, ✓� ACCEPTED BY: TITLE: DATE: D_lvine & Touche LLP—Proposal to Serve the City of Hunfington Beach Page 14 t{ Appendix A Resumes STENVART ROG, CMC Principal - Parsippany EXPERIENCE Mr. Rog is the National Director of the Sports & Entertainment Industry Practice and has 18 years of financial, marketing and operations consulting experience. He has served a wide range of public and private clients throughout the world. Mr. Rog is nationally recognized in his field and has been a frequent guest speaker on the development and economic impact of public assembly facilities. His specific project experience'incltides sports and recreation facilities, sports franchises, convention centers, and other special use projects. Recently completed and ongoing relevant experience includes: Sports & Entertainment ■ Arizona Office of Sports Development ■ Bass PLC - Philadelphia Park ® Bridgewater Township , ® California Angels e City of Anaheim A City of Buffalo (Crossroads Arena) e City of Dallas (proposed arena) s City of Henderson ® City of San Antonio • Cuyahoga County is Franklin County Convention Facilities Authority ® The Fresno Diamond Group Investor Group ® Illinois Stadium Facilities Authority s Kansas City, Kansas v Maricopa County Sports Authority ■ Maryland Stadium Authority a Miami Sports and Exhibition Authority ® Mid -Ohio Regional Planning Commission ■ Minnesota Vikings EDUCATION The Cooper Union, B.E. in Civil Engineering Cornell University, M.E. in Transportation Planning New York University, M.B.A. in Finance PROFESSIONAL AFFILIATIONS Institute of Management Consultants Certified Management Consultant ■ Morris County ■ New Hampshire Office the Legislative Budget Assistant ■ New Jersey Sports and Exposition Authority ■ . New York Yankees (spring training complex) ■ Oakland -Alameda County Coliseum • Owen Field, University of Oklahoma ■ Philadelphia Eagles ■ Rock & Roll Hall of Fame in Cleveland ■ San Francisco 49ers e Santa Clara County Stadium Joint Powers Authority ■ Seattle Center ■ SMG ■ State of Maryland ■ Tampa Bay Lighting ■ University of Virginia DANIEL S. BA RRETT Senior Manager - Los Angeles EXPERIENCE Mr. Barrett is the Western Region Sports and Entertainment Consulting practice leader. He has extensive experience in the planning, development, and operations of sports and entertainment facilities. His primary responsibilities include assessing market and financial feasibility of arena and stadium development projects. Mr. Barrett has direct consulting experience in the following areas: market evaluation; financial feasibility testing; strategic planning; identification of public and private financing sources; economic/fiscal impact analysis; joint venture negotiation; capital investment analysis; project budgeting; buy versus lease comparison; acquisition due diligence (sports franchises); workout strategies; asset management; property appraisal; and litigation support. Mr. Barrett has experience analyzing numerous types of land uses including: arenas, stadiums, golf courses, theaters and other entertainment/recreational uses; resort, gaming and convention hotels; convention centers; resort -related housing; master planned mixed use developments; affordable, market rate and luxury permanent housing; neighborhood and regional retail centers; light industrial parks; and office. Mr. Barrett has worked on engagements throughout California, Nevada, Washington, Arizona, Indiana, Illinois, Missouri, Georgia, Oklahoma, Ohio, Texas, Hawaii, Pennsylvania, British West Indies, Canada and Mexico., Completed and ongoing relevant experience includes: Sports & Entertainment • City of San Diego N Tampa Bay Lightning (Ice Palace) N Hawaii Convention Center Authority N Allen County War Memorial Coliseum 111 City of Compton 0 Edmonton Coliseum N City of Henderson N California Angels • City of Lake Elsinore N City of Anaheim • City of Atlanta -Fulton County Recreation Authority ■ City of Inglewood N Philadelphia Eagles N Franklin County Convention Facilities N San Francisco 49ers Authority • City of Corona ■ Rose Bowl A City of Thousand Oaks N The Fresno Diamond Group Investor Group N City of Oklahoma City N Oakland Athletics Investor Group ■ The Los Angeles County Fair, Hotel & Exposition N National Hockey League Franchise Complex I ■ Canadian Minor League Hockey Franchise • Oakland -Alameda County Coliseum ■ Shoreline Amphitheater N City of Dallas ■ Horse Track/Motor Speedway Conversion EDUCATION Master of Business Administration, Real Estate/Finance, USC Bachelor of Arts, Economics/International Studies, UCLA PROFESSIONAL AFFILIATIONS International Association of Auditorium Managers (IAAM) Urban Land Institute (ULI) USC Real Estate Alumni and Friends UCLA Alumni Association LEON G. DEVANEY Senior Consultant - Los Angeles Experience Mr. Devaney is a Senior Sports Consultant in the Los Angeles/Century.City. office of the Deloitte & Touche LLP Realty Consulting Group. His responsibilities include assessing the market and financial feasibility for sport, convention and other public assembly facilities. In addition, he has performed several economic and fiscal impact analyses for public assembly facilities and sports franchises throughout the U.S. Areas of special concentration include sports, convention centers, hospitality, gaming and other entertainment land uses. Prior to joining D&T, Mr. Devaney was the Assistant Financial Officer at the University of Southern California Athletic Department. In this position, he was responsible for revenue and expense forecasting as well as department and team specific financial management. Previously, he was the Assistant Account Manager at a Southern California property management company where he prepared property performance reports, provided investment analysis, and assisted in managing the accounts of over 200 residential properties. Recently completed and ongoing relevant experience includes: Sports & Entertainment ■ City of Corona e Fleet Bank ■ City of Atlanta -Fulton County Recreation Authority 9 Oakland -Alameda County Coliseum N Milwaukee Admirals ■ Rose Bowl o Franklin County Convention Facilities Authority 0 City of Oklahoma City N City of Seattle e Allen County War Memorial Coliseum ■ California Angels ■ City of Anaheim ■ City of Inglewood 0 Horse Track/Motor Speedway Conversion N The Fresno Diamond Group Investor Group ■ National Hockey League Franchise Education `taster of Business Administration, Finance/Real Estate Valuation, USC Bachelor of Arts, Finance, USC Professional Affiliations QSC Real Estate Alumni and Friends I Appendix B Terms and Conditions .. Client: City of Huntington Beach (City) Deloitte & Touche LLP ("D&T") will perform the services set forth in the engagement letter (the "Engagement Letter") of which these Terms and Conditions are a part (the "Services"), subject to the following: 1. Information and Data. D&T is entitled to assume, without independent verification, the accuracy of all information and data that the City provides to D&T. All information and data to be supplied is complete and accurate to the best of the City's knowledge. D&T has used information and data furnished by others if D&T in good faith believed such information and data to be reliable; however, D&T shall not be responsible for, and D&T shall provide no assurance regarding, the accuracy of any such information or data. D&T shall not assume any responsibility for any financial and tax reporting with respect to the properties covered by D&T's services. The City shall be responsible for all financial statement and tax reporting with respect to such properties. D&T shall be providing advice and recommendations to the City; however, all decisions in connection with the implementation of such advice and recommendations shall be the City's responsibility. D&T shall have no responsibility for any decisions made by the City relating to D&T's services. D&T shall have no responsibility for any assumptions provided by the City, which assumptions shall be the City's responsibility. D&T shall have no responsibility to address any legal matters or questions of law. 1. Asset Descriptions. To the extent that this engagement includes assets, properties or business interests, D&T shall assume no responsibility for matters of legal description or title, and D&T shall be entitled to make, and shall have no responsibility for, the following assumptions about the subject assets, properties, or business interests: title is good and marketable; the subject assets, properties, or business interests are free and clear of any and all liens or encumbrances; there is full compliance with all applicable Federal, state, local and national regulations and laws (including, without limitation, zoning regulations); there are no encroachments; the land is free of adverse soil conditions which would prohibit development of the property to its highest and best use; there is responsible ownership and competent management with respect to the subject assets, properties, or business interests; all required licenses, certificates of occupancy, consents, or legislative or administrative authority from any Federal, state, local or national government, private entity or organization have been or can be obtained or renewed for any use on which D&T's services are to be based; and any plot plans, sketches, drawings or other exhibits that may be included in D&T's report, if any, are included Only to assist the reader in visualizing the property, and D&T will not make, and shall not assume any responsibility for, any survey. Unseen Conditions D&T shall not assume any responsibility for identifying structural conditions. D&T's services will be based upon surface rights only (as applicable), and no analysis «zll be made of the subsurface or of hazardous waste conditions, if any. D&T's services 'hall not take into consideration the possibility of the existence of asbestos, PCB transformers, or "tiler toxic, hazardous or contaminated substances or underground storage tanks, or the cost of r(Ml oval. D&T is not qualified to detect, and shall not be responsible for detecting, such 411113tances. rM 4. Reports. Any reports prepared by D&T are valid only when presented in their entirety and only for the purpose. stated therein. It is expressly understood that (a) D&T's reports, recommendations, analyses and conclusions, if any, do not, in whole or in part, constitute a fairness or solvency opinion and (b) D&T will not perform any review, audit or other attestation procedures with respect to financial information as defined by the American Institute of Certified Public Accountants and will not issue any opinion, report or -other form of assurance with respect to any financial information. D&T's reports may- not :be used, in whole or in part, in any financing document associated with the proposed projects. S. Confidentiality. It is understood and agreed that all work product resulting from D&T's services shall remain the exclusive property of D&T and that the City will preserve the confidentiality of the format and contents of any reports, analyses or other documents prepared by D&T, except as required by law. The City agrees not to reference D&T's name or any reports,, analyses or other documents prepared by D&T, in whole or in part, in any document distributed to third parties without D&T's prior written consent. The City agrees that any reports, analyses or other documents prepared by D&T will be used only in compliance with these Terms and Conditions and applicable laws and regulations. D&T will preserve the confidential nature of information received from the City in accordance with D&T.'s established policies and practices. 6. Property. To the extent that D&T utilizes any of its property (including, without limitation, any hardware or software) in connection. with its services, such property shall remain the property of D&T, and the City shall not acquire any right or interest in such property. D&T shall have ownership (including, without limitation, copyright ownership) and all rights to use and disclose its ideas, concepts, know-how, methods, techniques, processes and skills, and adaptations thereof (including, without limitation, generalized features of the sequence, structure and organization of any works of authorship) in conducting its business, and the City shall not assert or cause to be asserted against D&T or its personnel any prohibition or restraint from so doing. 7. Limitation on Warranties. This is a professional services agreement. D&T represents and warrants that it shall provide the services in good faith. D&T disclaims all other representations and warranties, whether express, implied or otherwise, including, without limitation, warranties of merchantability and fitness for a particular purpose. B. Indemnification. The City shall indemnify and hold harmless D&T, its partners, principals and employees from and against any and all actions, losses, damages, claims, liabilities, costs and expenses (including, without limitation, reasonable legal fees and expenses) brought against, paid or incurred by any of them at any time in any way arising out of or relating to D&T's services, except to the extent finally judicially determined to have resulted from the intentional. misconduct of D&T. 9. Limitation on Damages. D&T, its partners, principals and employees shall not be liable to the City for any losses, damages, claims, liabilities, costs or expenses in any way arising out of or relating to this engagement for an aggregate amount in excess of the fees paid by the City to D&T for its services. In no event shall D&T, its partners, principals or employees be liable for consequential, special, 'indirect, incidental, punitive or exemplary loss, damage, cost or expense (including, without limitation, lost profits and opportunity costs); The provisions of paragraph 8 and this paragraph 9 shall apply regardless of the form of action, whether in contract, statute, tort (including, without limitation, negligence), or otherwise, and shall survive the completion or termination of this engagement. 10. Subsequent Work. D&T, by reason of the services, is not required to furnish additional work or services, or to give testimony, or to be in attendance in court with reference to the assets, properties, or business interests in question. D&T will have no responsibility to update any report, analysis or other document relating to its services for any events or circumstances occurring subsequent to the date of such report, analysis or other document. 11. Cooperation. The City shall cooperate with D&T in connection with the performance by D&T of its services, including providing D&T with reasonable and timely access to the City's information, data and personnel. 12. Non -Exclusivity. Nothing in this report, including these Terms and Conditions, shall be construed as precluding or limiting in any way the right of D&T to provide consulting, auditing'. or other services of any kind or nature whatsoever to any person or entity as D&T in its sole discretion deems appropriate. 13. Force Majeure. D&T shall not be liable for any delays or failures resulting from circumstances or causes beyond its reasonable control, including, without limitation, fire or other casualty, act of God, strike or labor dispute, war or other violence, or any law, order or requirement of any governmental agency or authority. 14. Independent Contractor. D&T is an independent contractor and D&T's compensation is not contingent in any way upon its conclusions or recommendations. Although it is not D&T's normal practice, D&T reserves the right to use subcontractors. 15. Complete Agreement. This Letter, including these Terms and Conditions, constitutes the entire agreement between the City and D&T with respect to the subject matter thereof and hereof, and supersedes all other oral or written representations, understandings and agreements between the City and D&T relating to the subject matter thereof and hereof. This Letter, including these Terms and Conditions, cannot be changed, except by written instrument signed by both the City and D&T. This Letter, including these Terms and Conditions, shall be binding on the City and D&T, and the City's and D&T's permitted successors and assigns; however, neither the City nor D&T may assign this Letter, including these Terms and Conditions, without the prior written consent of the other, except that the City and D&T may assign this Letter, including these Terms and Conditions, to any successor to all or substantially all of the business or assets of such party. • 16. Inconsistencies. In the event of any conflict or inconsistency between the provisions set forth in this Letter and these Terms and Conditions, the provisions of these Terms and Conditions shall govem. ATTACHMENT #2 JUL 22 '97 11:28 FR TO 9 7143741571 P.01/02 11 *1 Supplier Perfo an ce Re vie w )un & Bradstreet Information Services Copyright 1997 Dun & Bradstreet, Inc. 'rovided under contract for the :xclusive use of Subscriber 098.22862 Attention: Marilyn Goldstein SUMMARY D-U-N-S: 00-169-3738 Deloitte & Touche LLP 1000 Wilshire Blvd, Ste 1500 Los Angeles CA 90017 Telephone: 213 688-0800 Chief Executive: John T"Cardis Management Control: Sates: Net Worth: Employs: SIC: 1,500 Total Here 8721 Accounting, auditing, bookkeeping PERFORMANCE SUMMARY as of July 21 1997 A total of 4 customers rated Deloitts & Touche LLP. There are 23 businesses rated in SIC 3721. Company Rating OVERALL RATING 1.25 (Overall satisfaction with supplier performance) TIMELINESS — DELIVERY OR PERFORMANCE 1.50 (Delivery of product or performance of service in promised time periods) PROBLEM RESPONSIVENESS 1.25 (Responsiveness to any product or service problem) QUALITY OF PURCHASED PRODUCT OR SERVICE 1.25 (Level of quality of purchased product or service) TOTAL COST 1.25 (Promised total cost of product or service versus any additional incurred costs) TECHNICAL SUPPORT 1.25 (Level of ongoing service to support or enhance purchased products or services) DELIVERY -- QUANTITIES (Actual quantity delivered versus quantity ordered) ATTITUDE OF SUPPLIER PERSONNEL 1.00 (Attitude of supplier personnel about supplier and toward customers) 8721 Average 1.26. 1.38 1.26 1.35. 1.13 1.26 1.14 1.15 Scale 1 Exceeds Expectations 2 3 Meets 4 Below 5 Expectations Note: The Supplier Ratings set forth above represent the opinions of Dun & Bradstreet's information providers. Some customers may not have provided ratings for all performance attributes. This report, provided under contract solely for use by subscriber as one factor in subscriber's credit, insurance, marketing or other business decisions, contains information compiled from sources D&S does not control and whose information, unless otherwise indicated in the report, has not been verified. In providing this report. D&S does not assume am part of the Users business risk, does not guarantee the accuracy, completeness or timeliness of the Information and shall not be liable for any loss or injury resulting from reliance on this report. This Mort may not be reproduced in whole or part in any manner whatsoever. �-' 7Z6 a JUL 22 '97 11:28 FR TO 9 7143741571 P.02i02 Supplier Performance review Copyright 1997 Dun & Bradstreet, Inc. Supplier: 00-169-3738 Deloitte & Touche LLP Provided under contract for the exclusive use of Subscriber 098-22862 Attention: Marilyn Goldstein Supplier Performance Comparison Overall t Timeliness 1. av i :..nM+w .MW+ iGYM.Y N rw.b WIJu�mw baNr.bM MM v.ww,e.i.MbJbbrwa.eihYNln.rxwnrvnV'SN':IWr!•�way.: M.nWY...x.��n:,:,� 1.38 i Responsiveness 1.30 c�bb..�.m.q.b +A�Iwmbr .b,w+nro wru..,b.mr b.ubPn rn � r. ,arorwv..nx,u,.*.wb:r�nrnlvr.:.,•a..�n;laa'..:,_:,.aw+...l.•�:� 1326 1 Qua►icy1IA0 O Supplier i -p Industry I Cost .30 L_ u •il.„ bMb W. wb1blN WITH-,,,rwr . w. �r x wN .rw wn..�. n ywrYNYbw....3 1.13 Support 1 30 Su I PP.M, n. bM r »» ..,rb , , , SIN b ,.„ . , N b NNMM/ 1,.. , »b.,.,,,• •., 1.25 i Quantity Attitude 00 �,..u...:�ww.nrww.•wu.�a.in:wu. �nb'N••�•r.�•wn.w;Jl�::..�.�.:.:1,W::�:.•i,...r'.rinrrw•n.vm...'I.,':vb....rtvirxq�..<:NN4Y.nbr.;i.u.a;.l....•ln.rbn:.i�:r\'.I :u.n'It'•Y..r.': r. nr�: i r�.�:,1 '1 5 5.00 4.00 3.00 2.00 1.00 i Below Meets Exceeds i Individual Supplier Ratings Date of Overall Problem Technical Experience Rating Timeliness Responsive Quality Total Coat Support Quantity. Attitude Jul•97 2 3 2 2 2 2 0 1 SIC: 9111 City Government High Purchase: N / A Yrs as Customer: 1 Date of Last Purchase: Oct - 1996 Title of Contact: Spec. Proj. Mgr. Jul-97 1 1 SIC: 9111 Yrs as Customer: Jul-97 1 1 SIC. 9111 Yrs as Customer* 2 1 1 1 Executive Office, Police Protection Date of Last Purchase: Jul - 1997 1 1 1 Executive Office Date of Last Purchase: Feb.- 1997 1 0 1 High Purchase: N / A Title of Contact: Asst. City Mgr 1 0 1 High Purchase: N / A Title of Contact: Finance Director Jul-97 1 1 1 1 1 1 0 1 SIC: 9221 Police Protection High Purchase: N / A Yrs as Customer: 5 Date of Last Purchase: Jul - 1996 Title of Contact: City Manager ' A Rating of Zero indicates no response was provided or the ouestion was not attributable. Note: The Supplier Ratings set forth above represent the opinions of Dun 8 Bradstreet's information providers. Some customers may not have provided ratings for all performance attributes. This report, provided under contract solely rot use by subscriber as one factor in subscribers eredir, insurance, marketing, or other business decisions. It is compiled rrom sources p6B does not oontrot end whose inhumation, unless otherwise lndketed in the report, has not been verified. -In providing this report 068 does not assume any part of the users business risk does not guarantee the accuracy, completeness or timeliness of the information and shell not be liable for any loss or injury resutdng bom reliance on this report. This report may not be reproduced in whole or part m any manner whatsoever. ** TOTAL PAGE.02 ** ATTACHMENT #3 • • Deloifte & Touche uP /� July 25, 1997 Mr. Jim Engle Deputy Director of Community Services City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Dear Mr. Engle: 1000 Wilshire Boulevard Telephone: (213) 688-0800 Los Angeles, California 90017-2472 Facsimile: (213) 688-0100 Thank you for considering our proposal to serve the City of Huntington Beach in regard to the proposed youth sports facility and gun range project. At your request, we are submitting this letter to the City in order to clarify our proposed business arrangements with specific reference to reimbursable expenses as presented in our proposal dated June 27, 1997 (the proposal). D&T will offer to perform the scope of services for the professional fees outlined in the proposal, plus reimbursement for all direct expenses incurred, including: travel and subsistence of our staff, subcontractors; word processing; postage; telephone; copying; overhead; publications and facsimile transmission. Based on the nature of this engagement, we estimate that reimbursable expenses will not exceed 10.0% of the professional fees incurred. The following schedule details the maximum expense to be incurred during this engagement: Pro iect Phase Description Youth Sports Facility Project Onlv Phase 1 Market Analysis Phase 2 Financial Analysis Total Gun Range Project Onlv Phase 1 Market Analysis Phase 2 Financial Analysis Youth Sports Facility and Phase 1 Market Analysis Gun Range Project Phase 2 Financial Analysis Total Maximum Expense Reimbursement $2,000 $1,000 $3,000 $2,000 $1,000 $3,000 $2,750 $2,000 $4,750 We greatly appreciate the opportunity to be of service and assistance to you in these very exciting projects. Please contact Mr. Daniel S. Barrett at (213) 553-1605 or Mr. Leon Devaney at (213) 553-1630 if you have any questions or comments regarding the terms presented in this letter. S'ncer , Daniel S. Barrett Deloittebuche 2029 Century Park East, Suite 300, Los Angeles, California 90067-2900 Tohmatsu One World Trade Center, Suite 2200, Long Beach, California 90831-2200 21550 Oxnard Street, Suite 800, Woodland Hills, California 91367-7125 International 2235 Faraday Avenue, Suite 0, Carlsbad, California 92008-7209 Telephone: (310) 551-6700 Telephone: (562) 499-8300 Telephone: (818) 5934800 Telephone: (619) 930-3430 Facsimile: (310) 284-9029 Facsimile: (562) 437-4761 Facsimile: (818) 347-4278 Facsimile: (619) 930-3440 • C. CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION To: Michael T. Uberuaga, City Administrator From: Robert J. Franz, Deputy City Administrator Subject: FIS 97-58 Performance of Fiscal Feasibility Study for Huntington Central Park Sports Complex Date: July 31, 1997 As required by Resolution 4832, a Fiscal Impact Statement has been prepared for FIS 97-58 Performance of Fiscal Feasibility Study for Huntington Central Park Sports Complex. If the City Council approves this request (total appropriation of $52,250) the estimateCunappropriated, undesignated General Fund Balance Spp�mber , 1997 will be reduced to $6,785,603. Robert J` F7anz, Deputy Cit Admii • fis9758 • Adopted Current Fund Balance -- General Fund Budget Estimate Beginning Fund Balance $ 3,227,959 $ 6,918,690 Plus Budget Surplus 356,590 2,453,667 Plus One Time Revenue (Estimated) 1,300,000 PERS Refund 456,000 Less Approved One -Time Costs (1,868,068) Less Transfer of PERS Refund (2,199,627) Less: Pending Budget Amendments (222,809) Less FIS 97-58 (52,250) Estimated 9/30/97 Balance $ 3,584,549 $ 6,785,603 Fund Balance - General Fund Page 1 RCA ROUTING SHEET V'� INITIATING DEPARTMENT: Administrative Services SUBJECT: Performance of Fiscal Feasibility Study for Huntington Central Park Sports Complex/Gun Range Project COUNCIL MEETING DATE: September 15, 1997 Otdinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Attached Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached Financial Impact Statement (Unbudget, over $5,000) Attached Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial I Not Applicable Administrative Staff Assistant City Administrator (Initial City Administrator (Initial) City Clerk RCA Author: goldstein oiiCITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 COMMUNITY SERVICES DEPARTMENT September 5, 1997 (714) 536-5486 Mr. Stewart Rog Deloitte & Touche 2 Hilton Court Parsippany, NJ 07054-0319 Dear Mr. Rog: Re: Signature on Agreement for Consulting Services Attached is the original Agreement- between the city and Deloitte & Touche for consulting services on the youth sports facility and the gun range. Please execute page ten and Fed Ex it as soon as possible to this office. Your prompt attention to this matter is sincerely appreciated. Sinc9oly, ' SON HAGAN Director Community Services RH:cr cc: City Clerk/ City Attorney A Qunlin I if(" Through Edrralriurr, RC crerrnon and C rrlrrrre (13) 09/15/97 - Counco9enc Agenda - Page 13 E-18. (City Council) Bid Award - Nobest, Inc., - Repair/Replacement Of Street Improvements Alona Trident Lane, Catalina Circle & Castle Drive - MSC-389 - 1. Accept the low bid submitted by Nobest, Inc. for the repair/replacement of applicable street improvements along Trident Lane, Catalina Circle and Castle Drive; and 2. Approve a total project budget of $522,000. This amount includes $393,402 for contract work, $39,340 for any unanticipated Change Orders and $89,258 for incidental expenditures (i.e parkway trees, water meter boxes, manhole lids, etc.). Submitted by the Public Works Director E-19. (City Council) Final Tract Map No. 14352 Of Tentative Tract Map No. 14352 - Plaza Almeria Subdivision - Between Main And Fifth Streets And Orange And Olive Avenues - 1. Approve Final Tract Map No. 14352 and accept the offer of dedication and improvements and bonds pursuant to findings and requirements as set forth in the Request for Council Action dated September 15, 1997; and 2. Approve the Subdivision Agreement between the City and J. T. Development Company. L.L.C. and authorize execution by the Mayor and City Clerk. F. Administrative Items F-1. (City Council) Aareement With Deloitte & Touche. L.L.P. For Preparation Of Fiscal Feasibility Studies For The Proposed Huntington Central Park Sports Complex And Gun Ranae - Amendment To General Fund Budget Communication from the Deputy City Administrator -Administrative Services Director and the Community Services Director regarding proposals obtained for the purpose of hiring an Independent Financial Consultant to prepare a Market Analysis and Proforma on the Huntington Central Park Sports Complex and the Gun Range. Recommended Action: Motion to: 1. Approve the Contract with Deloitte & Touche L.L.P., in the amount of $47,500 to prepare a Fiscal Feasibility Study on the Huntington Central Park Sports Complex and Gun Range; and 2. Approve an Amendment to the current year General Fund Budget by appropriating $52,250 (contract=$47,500+expense reimbursement=$4,750) for the fiscal feasibility study. G. Ordinances G-1. Ordinance For Adoption - None G-2. Ordinances for Introduction G-2A. (City Council) Introduction Of Ordinance No. 3370 - Amends Municipal Code Chapter 8.44 Vehicles & Motorcycles Relative To Motorized Scooter (GO-PEDS) and Motorized Skateboards - "An Ordinance of the city of Huntington Beach Amending Chapter 8.44 of the Huntington Beach Municipal Code Pertaining to Vehicles and Motorcycles, and Definitions Thereof, and the Operation of Motorized Scooter." Recommended Action: After City Clerk reads by title, approve introduction of Ordinance No. 3370, by roll call vote. (13)