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) THE CITY OF NASHUA “The Cate City”

Financial Services

Purchasing Department

August 11, 2016
Memo #17-032

TO: MAYOR DONCHESS
FINANCE COMMITTEE

SUBJECT: CONTRACT AWARD FOR PERFORMING ARTS CENTER FEASIBILITY STUDY
PHASE il (VALUE: $27,000)
DEPARTMENT: 183 ECONOMIC DEVELOPMENT; FUND: DOWNTOWN
IMPROVEMENT COMMITTEE TRUST FUND
ACCOUNT CLASSIFICATION: 53 PROFESSIONAL & TECHNICAL SERVICES

Please see attached communication from Tim Cummings, Director of Economic Development dated
August 7, 2016 for the information related to this contract award.

The Director of Economic Development and the Purchasing Department recommend awarding this
contract in an amount not to exceed $27,000 to Web Management Services of NY, NY.

Purchasing Manager

Ce: TCummings J Graziano

229 Main Street » Nashua, New Hampshire 03061 « Phone (603) 589-3330 e Fax (603) 589-3344

THE CITY OF NASHUA “The Cate City’

Economic Development Division

To: Dan Kooken, Purchasing Manager
From: Tim Cummings, Economic Development Division Director
Ce: Janet Graziano, Financial Manager, Sarah Marchant, Community Development Director

Date: August 7, 2016

Re: Performing Arts Center Feasibility Stady Phase I

Request
The Economic Development Division requests approval to extend the contract with Webb Management

Services, Inc. of New York, New York for the second Phase II of the Performing Arts Center Feasibility
Study in the amount not to exceed $27,000.

Background
In September of 2015, the City of Nashua Mayor’s Office of Economic Development issued a Request for

Proposals (RFP0265-101415) seeking proposals from professional consultants to study the feasibility of
developing a new Cultural and Performing Arts Center within Downtown Nashua. The services sought

include the evaluation of programming needs, the development of project feasibility, review of specific

sites and assistance with project next steps.

Webb. Management Services, Inc., was selected due to a number of factors, including:
® vast experience with relevant performing arts center feasibility studies;

* intimate knowledge of the New Hampshire/Massachusetts regional performing arts
center market;

*® clear viewpoint as an objective analyst - the firm only works on these types of
feasibility studies and will not look for additional work from Nashua (designing the
future facility, etc.)

e a low overall price proposal the provides the most value to Nashua;

After consulting with Webb, the City chose to break out the work into two phases with Phase I, evaluating
demand for a new performing arts facility in Nashua, verifying audience potential, identifying potential
users and uses, confirming its positioning within a competitive market, and considering how new
performance facilities might support the broader goals of the City and region. This phase of the project has
been completed and the project has been deemed to be viable.

At the PEDC meeting on July 14 the decision was made to continue moving forward and that the city
should engage Webb Management to execute on the scope of work associated with Phase II of the
feasibility study.

Attached is the contract including the Phase II scope of work along with a memo outlining key discussion
points based on the conclusions of Webb Management.

City of Nashua

Economic Development Division
City Hall, 229 Main Steet, PO Box 2019
Nashua, New Hampshire 03061-2019

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To: Alderman Melizzi-Golja and the Planning & Economic Development Committee
From: Tim Cummings, Economic Development Division Director

Date: July 14, 2016

Re: Discussion on Moving Forward with Performing Arts Center
Feasibility Study Phase IT

Objective(s)
1. Ensure we have consensus on moving forward with Phase I
2. Begin discussion on outstanding issue(s)
Background
The City has chosen to break out the work into two phases, with up to two separate contracts.
Phase I: Evaluates demand for a new performing arts facility in Nashua, verifying audience
potential, identifying potential users and uses, confirming its positioning within a competitive
market, and considering how new performance facilities might support the broader goals of
the City and region.
Duncan Webb's conclusions & recommendation(s):

* The case for building a brand new, large-capacity performing arts venue in
Nashua is challenged by the city’s proximity to multiple large, presenting
performing arts centers, the development of a new concert hall nearby, and
limited demand on the part of local users for a venue with 750 or more seats.

*x Additionally, the city is already home to two performance venues that are
regularly used by the community but that are greatly in need of renovation.
* With that said, we see tremendous opportunity in Nashua. The organizations that

are currently active in the community offer a diverse product, maintain busy
schedules, and have demonstrated an ability to grow and develop programs over
time. If we look to Positive Street Art as an example, Nashua can be seen as the
type of environment that can allow an emerging organization the time, space, and
support needed to flourish.

* Our recommendations, then, are focused on hamessing the city and community's
current arts-momentum and resources, directing them at three different options.

Ll) Pace

Outlined Options:

1. Partner with a college or university on the development of a new downtown arts center
2. Develop a downtown meeting, events, and music center
3. Develop an arts district

* Phaze I cost $22,500 and has been completed and the budget has been 100%
expended

Development of a Phase IT Scope

Director Sarah Marchant and I received a draft scope of work from Duncan Webb (General
Performing Art Center Consultant) and Scott Aquilina (Architect for the project) for a phase
Tl project:

>» Itincludes developing a business plan (operating projections), cost estimates for

implementing a program (capital expenses), basic physical plans. (Please see attached).

Outstanding Issues

Financial -- Capital Requirements/Expenditures ~ A clear understanding of the capital
expense and investment in such an asset should be understood with an associated order of
magnitude

Vision for operational Management — Understanding the operational costs associated
with this project needs to be understood with the a clear understanding of a vision of how
this asset will be managed

Setting Aside Keefe Auditorium ~ A clear directive that setting aside Keefe Auditorium
is the desire due to the lack of control (should this variable change we could adjust
accordingly, but as of now I want to ensure it is clear whether Keefe should be studied or
not)

Citizen Engagement ~ There will be a need to develop a small working group to help
steer the conversation and make a recommendation back to you.

Understanding an additional $27,000 will be necessary to execute Phase II (which
Downtown Improvements Committee has approved $25,000 for this project as a funding
source for this project)

=

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management
Services

cy incorporated

phase 2 contract

to: Tim Cummings, City of Nashua

from: Duncan Webb, Webb Management Services
regarding: Phase 2 Scope + Fees

date: July 14, 2016

Here is our scope of services and financial proposal for the second phase of the Performing Arts
Center Feasibility Study.

scope of services

As the results of Phase One have confirmed the need fer new and improved facilities together with
the development of a cultural district, we would propose a second phase of work that considers
the physical, financial, and operating implications of the new facilities. These nwo parts of the
work would proceed in parallel.

part 1: physical planning

apace program: Based on Phase One recommendations, develop a space program and assign
square footages for specific spaces, list essential characteristics and recommend
infrastructure/equipment/technology required for functions. This will also include a
template/footprint far the ideal plan.

site avaluation + recommendation: Apply the template to sites identified by the City,
specifically the Court Street Complex, Alec Shoe Store Building and two of the “open” parking lot
sites. Compare fit to function on each site, analyze the site conditions and Uist pro's and con's for
each option.

order of magnitude capital cost estimate: Based on the space program and current
regional cost information, prepare a provide a benchmark budget for each scenario described
above,

part Z: preliminary business plan

define goalie + practices: Define the vision and operating goals for recommended facilities and

an arts district, covering such areas as support for the local arts groups, sustainable operations,
supporting economic and downtown development, and maximizing community benefits.

Empire State Building | 350 Fifth Avenne, Suite 4005 | KY, NY 10119 1 t: 212.929.5040 1 f 212929.5954 ¢ webbmemtarg

management
Services
incarporated

comparable modets: Research comparabie facilities and districts nationwide to inform the
business plan. Key areas of research are governance and operating modets, the scheduling of
facilities, tevels of utility and cost, balancing internal and external demand for facilities,
partnerships, revenue-generating activity, and key factors that led to successful operation of new
and similar projects.

activity profile + programming plan: Prepare a multi-year activity profile for recommended
facilities, listing types and level of use related to presenting, rentals and any other activity. Also
include any additional programming opportunities and positioning strategies, based on the market
analysis and competitive analysis.

pro-forma operating budget: Develop a multi-year pro-forma operating budget for
recommended facilities, starting the year before new facilities open and then through the first

' three years of operation. Project attendance and other levets of participation. Identify and
estimate all sources of operating revenues and expenses, appropriate capital reserves, and the
likely result of operations with and without an operating endowment.

funding plan: Assist with the development of a basic funding plan to pursue the contributed
income needed to sustain recommended facilities, as indicated by the pro-forma operating
budget. Consider types and levels of contributed Income from all public and private sector
sources, and suggest how to use the business plan as a fundraising tool.

economic impacts: Forecast the economic and fiscal impacts of recommended facilities and an
arts district including the impacts of construction, operation, and ancillary spending associated
with attendance. Use the RIMS li model developed by the Bureau of Economic Analysis to estimate
the direct and Indirect impacts of the project on the market area, including outputs, Increased
earnings, and employment. Also identify and describe the more qualitative economic impacts of
new performing arts facilities in downtown Nashua, including Impacts on commercial
development, cultural tourism, and the recruitment of new businesses to locate In Nashua.

critical path plan: Create a critical path plan for leadership that identifies key milestones and
deadiines towards the development and operation of facilities and a district.

repart + presentation: Present the findings and recommendations of the physical and
business plans. Incorporate feedback from the client, and deliver a final written document that
includes all research, analysis, conclusions, and recommendations.

=

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management
Services
incorporated

deliverables

in Phase 2, we will deliver a Powerpoint summary of the work, in addition to an Excel-based space
program and capital budget, site analysis drawings, Excel-based pro-forma operating budgets,
research on operating comparables, economic impact multipliers, and other supporting data.
timeline

We would anticipate completing this work over a three-month period, subject to timely review of
materials and the scheduling of presentations,

fee proposal

We propese professional fees of $27,000, including expenses, ta complete the second phase of
work, broken down as follows:

Phase Two, Part 1: $15,000
Phase Two, Part 2: $12,000
Total Fees: $27,000

We will bill the City monthly based on the progress of the study.

Yours sincerely,

Duncan M. Webb, President
Webb Management Services, Inc.

Agreed and accepted this___ dayof_____, 2016

By
City of Nashua

CONTRACT FOR PROFESSIONAL SERVICES

NASHUA PERFORMING ARTS CENTER FEASIBILITY STUDY:
PHASE

A CONTRACT BETWEEN

THE CITY OF NASHUA, 229 MAIN STREET, NASHUA, NH 03061-2019

AND

WEBB MANAGEMENT SERVICES, INC.

NAME OF CONSULTANT

350 FIFTH AVENUE, SUITE 4005, NEW YORK, NH 10118

ADDRESS OF CONSULTANT

-WHEREAS, the City of Nashua, a political subdivision of the State of New Hampshire, from time
to time requires the services of a Consultant; and

WHEREAS, it is deemed that the services of a Consultant herein specified are both necessary and
desirable and in the best interests of the City of Nashua; and

WHEREAS, Consultant represents they are duly qualified, equipped, staffed, ready, willing and
able to perform and render the services hereinafter described;

Now, THEREFORE, in consideration of the agreements herein made, the parties mutually agree as
follows:

1. DOCUMENTS INCORPORATED. The following exhibits are by this reference incorporated herein and
are made part of this contract:

Exhibit A--General Conditions for Contracts
Exhibit B--Scope of Services, Contract Time, Fee Schedule

The Contract represents the entire and integrated agreement between the parties and supersedes prior
negotiations, proposals, representations or agreements, either written or oral. Any other documents which
are not listed in this Article are not part of the Contract.

_ In the event of a conflict between the terms of the Proposal and the terms of this Agreement, a written
change order and/or fully executed City of Nashua Purchase Order, the terms of this Agreement, the
written change order or the fully executed City of Nashua Purchase Order shall control over the terms of
the Proposal.

AG Ii of3

‘ PERFORMED Except as otherwise provided in this contract, Consultant shall furnish all
servic siment, and materials and shall perform all operations necessary and required to carry out
ecordance with the terms and conditions of the contract the work described.

°RFORMANCE. Consultant shall perform and complete all work within the time periods
y only be altered by the parties by a written agreement to extend the period of
periosmancs or oy termination in accordance with the terms of the contract. Consultant shall begin
performance upon receipt of an Executed Contract and a valid Purchase Order issued from the City of
Nashua.

4. COMPENSATION. Consultant agrees to perform the work for a total cost not to exceed
Twenty-Seven Thousand Dollars ($ 27,000)

which, unless otherwise provided in this contract, shall be paid in accordance with the provisions of
Exhibit B or unless Consultant has received a written exemption from the City of Nashua. Consultant
shall submit monthly requests for payment for services performed under this agreement directly to

City of Nashua

Attn: Accounts Payable
PO Box 2019

Nashua, NH 03061-2019
Atten:

To facilitate the proper and timely payment of applications, the City of Nashua requires that all
invoices contain a valid PURCHASE ORDER NUMBER.

Requests for payment shall be submitted no later than fifteen (15) days after the end of each month and
must include a detailed summary of the expenditures reported in a form that supports the approved
budget. Specifically, Consultant agrees to provide the following with each request for payment:

1. Appropriate invoice forms. The forms shall include the project purchase order number, a
listing of personnel hours and billing rates, and other expenditures for which payment is sought.

2. A progress report. The report shall include, for each monthly reporting period, a description
of the work accomplished, problems experienced, upcoming work, any extra work carried out,
and a schedule showing actual expenditures billed for the period, cumulative total expenditures
billed and paid to date under the contract, and a comparison of cumulative total expenditures
billed and paid to the approved budget.

The City of Nashua will pay for work satisfactorily completed by Consultant. The City of Nashua will
pay Consultant within 30 days of approval by the City of Nashua of the submitted invoice forms and
progress reports. The City of Nashua will make no payments until the invoice forms and progress reports
have been submitted and approved.

5, EFFECTIVE DATE OF CONTRACT. This contract shall not become effective until and unless approved
by the City of Nashua.

6. NOTICES. All notices, requests, or approvals required or permitted to be given under this contract

shall be in writing, shall be sent by hand delivery, overnight carrier, or by United States mail, postage
prepaid, and registered or certified, and shall be addressed to:

AG 2 of 3

CITY OF NASHUA REPRESENTATIVE:

Tim Cummings

Economic Development Director
City Hall, 229 Main Street
Nashua, NH 03060

REPRESENTATIVE:

Duncan Webb

Webb Management Services, Inc.
350 Fifth Avenue, Suite 4005
New York,NH 10118

Any notice required or permitted under this contract, if sent by United States mail, shall be deemed to be
given to and received by the addressee thereof on the third business day after being deposited in the mail.
The City of Nashua or Consultant may change the address or representative by giving written notice to

the other party.

IN WITNESS WHEREOF, the parties hereto have caused this contract to be signed and intend to be legally

bound thereby.

‘City of Nashua, NH (signature)

James Donchess, Mayor
(Printed Name and Title)

Date

(signature)

(Printed Name and Title)

Date

AG 3 of 3