From: Rosemary I. Waldorf, Mayor
Edith M. Wiggins, Council Member
Subject: Addendum to Agreement with Consultant for Employer-Employee Housing
Date: November 13, 2000
The purpose of this memorandum is to recommend that the Council adopt the attached Resolution and Ordinance authorizing the Manger to execute an agreement with UniDev, L.L.C. for the provision of additional consulting services in connection with strategic planning for the development of employer-employee housing and associated retail and parking facilities, the development of office space, and the feasibility of the Town of Chapel Hill proceeding in a development without participation by the University or UNC Health Care System (UNC Hospitals).
The Council conducted a work session on February 7, 2000 on the subject of developing employer-employee housing in the downtown on property owned by the Town and the University on Rosemary Street.
Employer-employee housing is housing that would be made available to and affordable to Town, University and Hospital employees.
Mr. Myron P. Curzan, Chief Executive Officer of UniDev, L.L.C., and Mr. Bill Quinby, Senior Managing Director of Julien J. Studley, Inc., outlined the services that they could provide if the Council wished to consider such a program. Subsequently, the Council authorized a contract with UniDev for the following services:
The University and UNC Hospitals agreed to contribute $33,000 each to help pay the total cost of $98,000. The Council agreed to pay the remaining $32,000 of the consultant’s fee and up to $2,000 of incidental expenses in addition to the consultant’s fee.
A Work Group was appointed, with members from each of the three partners in the study. Mayor Waldorf and Council Member Wiggins were appointed to represent the Council. Other members of the Work Group are: Diane Bachman, Edwin Caldwell, Laurie Charest, Dick Hatfield, Cal Horton, Norm Klase, Bruce Runberg, Mike Stegman, and Dee Jay Zerman.
The Work Group met several times in the spring and the summer to receive reports of the consultant’s progress and to provide feedback and guidance for further work. The Council received a report from the Work Group and the consultant at a special session on July 11, 2000. Minutes of Work Group meetings are attached.
At this point in the work, we believe three items need to be addressed:
The consultant is prepared to undertake the additional work and a tentative contract has been proposed (Please see the attachment at page 6.) Total cost would be $35,500.
Of the total cost, $20,500 would be for the additional housing market analysis. The University and the Hospitals each have agreed to contribute one-third of this amount, or a total of $13,667. The Town would pay the remaining one-third, or $6,833. The cost of the office analysis would be $10,000 (as specified in the original contract) and the cost of the stand-alone development analysis would be $5,000.
The Town’s total cost for the additional work would be $21,833. The Manager notes that the audit report being delivered this evening shows a more favorable fund balance than originally anticipated. We believe it would be reasonable to allocate the necessary amount from the fund balance, thus preserving the Council’s Contingency Account balance of about $35,000.
We recommend that the Council adopt the attached Resolution authorizing the Manager to execute the proposed amendment to the agreement with UniDev and the attached Ordinance amending the budget for the study.
A RESOLUTION AUTHORIZING THE MANAGER TO EXECUTE AN AMENDMENT TO THE MAY 10, 2000 AGREEMENT WITH UniDev, L.L.C., FOR THE PROVISION OF CERTAIN CONSULTING SERVICES (2000-11-13/R-9)
BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby authorizes the Town Manager to execute on behalf of the Town an amendment to the May 10,2000 agreement with UniDev, L.L.C., in substantially the form as presented to the Council at its meeting on November 13, 2000.
This, the 13th day of November, 2000.
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2000 (2000-11-13/O-4)
BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2000” as duly adopted on June 26, 2000 be and the same is hereby amended as follows:
ARTICLE I
Current Revised
APPROPRIATIONS Budget Increase Decrease Budget
GENERAL FUND
Non-Departmental
Housing Project 0 35,500 35,500
ARTICLE II
Current Revised
REVENUES Budget Increase Decrease Budget
GENERAL FUND
Fund Balance 2,275,156 21,833 2,296,989
This, the 13th day of November, 2000.
AMENDMENT TO CONTRACT FOR CONSULTING SERVICES
THIS AMENDMENT TO CONTRACT FOR CONSULTING SERVICES (this “Amendment”) is made as of November ___, 2000 by and between UniDev, L.L.C., a Delaware limited liability company (“UniDev”), and Town of Chapel Hill, a North Carolina municipal corporation (the “Town of Chapel Hill”).
RECITALS
WHEREAS, the Town of Chapel Hill and UniDev have entered into a certain Contract for Consulting Services, dated as of May 10, 2000 (the “Contract”), pursuant to which the Town of Chapel Hill engaged UniDev to perform certain consulting services described therein, for the Town of Chapel Hill, the University of North Carolina at Chapel Hill (the “University”) and the University of North Carolina Health Care System (the “Hospitals”), in connection with the strategic planning for the development of employer assisted housing and associated retail and parking facilities; and
WHEREAS, the Town of Chapel Hill, on behalf of itself, the University, and the Hospitals (collectively, the “Town”), desires to engage UniDev to perform certain additional consulting services for the Town;
WHEREAS, UniDev has expertise and experience to provide such services; and
WHEREAS, the Town of Chapel Hill and UniDev desire to amend the Contract so as to incorporate the additional services described herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows:
TERMS
1. Scope of Work. In addition to the services described in the Contract, UniDev hereby agrees to perform the following services (the “Additional Services”) on behalf of the Town:
a. Office Analysis. The tasks for this analysis shall include the following:
i) Meet with representatives of the Town of Chapel Hill to understand its goals/concerns re office space.
ii) Identify and meet with appropriate local commercial brokers.
iii) Identify supply of office space in area.
iv) Establish demand for additional office space.
v) Estimate construction costs for office space.
vi) Prepare financial analysis for development of office space.
b. Stand Alone Analysis. The tasks for this analysis shall include the following:
i) Meet with representatives of the Town of Chapel Hill to understand its goals/concerns re undertaking development project without the participation of the University and the Hospitals.
ii) Review assumptions upon which current conceptual development program is based in light of change in circumstances.
iii) Prepare financial analysis based upon revised assumptions.
c. Housing Needs Analysis. The tasks for this analysis shall include the following:
i) Meet with representatives of the Town to understand housing issues and concerns regarding recruitment and retention of employees.
ii) Conduct interviews with 10 young professionals from each of the institutions to determine the scope of housing issues for employees.
iii) Undertake focus groups, consisting of Town employees who indicated an interest in purchasing housing in downtown and/or employees who have been recently hired, to further assess housing demand and gain insights into specific interests and concerns.
2. Term. UniDev’s performance of the services described in this Amendment shall commence as of the date hereof. UniDev shall complete these services within approximately twelve (12) weeks (approximately 3 months) thereafter.
3. Sub-Consultants. The Town hereby approves the engagement of Columbia Focus to perform focus group services in connection with this project.
4. Fees.
Contractor shall be compensated for the Additional Services, including all of its time and expenses in connection with the performance of its services, in the lump sum amount of $35,500, comprised of $10,000 for the Office Analysis portion, $5,000 for the Stand Alone Analysis portion, and $20,500 for the Housing Needs Analysis portion. Such amount shall be due and payable as invoices are submitted to the Town of Chapel Hill, based upon the percentage completed of each task to the date of the invoice. In no event shall invoices be submitted more frequently than monthly.
5. Miscellaneous.
a. Except as expressly modified herein, the terms and conditions of the Contract shall remain unchanged and in full force and effect.
b. This Amendment shall in all respects be governed and construed in accordance with the laws of the State of North Carolina.
c. This Amendment may not be changed except by a writing executed by both parties hereto.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to Contract for Consulting Services as of the date first above written.
TOWN OF CHAPEL HILL
By: Attest: _______________________
W. Calvin Horton, Town Manager Title:
UNIDEV, L.L.C.
By: Attest: _______________________
Myron P. Curzan, Chief Executive Officer Title:
Approved as to Form: ___________________________________
Ralph D. Karpinos, Esq.
Town Attorney
This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act.
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