This Consulting Agreement (the "Agreement") is entered into as of the ;(6.~ay of JAlt.U19, 2016
(the "Effective Date"), by and between RESTON ASSOCIATION (the "Association"), and
StoneTurn Group, L.L.P. (the "Consultant") (together, the "Parties").
WHEREAS, the Association desires to retain the Consultant to render certain services to the
Association and the Consultant desires to be so retained by the Association and to perform the
services specified herein, all in accordance with the terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of the premises, conditions and representations set forth
herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby
mutually acknowledged, the Association and the Consultant agree as follows:
1.1 Statement of Work. The Association hereby engages the Consultant to provide
certain services, including reports, documentation and/or other deliverables (the "Services") to the
Association during the term of this Agreement, and the Consultant hereby accepts such
engagement. The Consultant agrees to perform for the Association the Services, and to provide
to the Association the work product, set forth in Schedule A (the "Statement of Work") which is
attached hereto and incorporated herein by reference. During the term of this Agreement, the
Association and the Consultant may develop and agree upon additional written Statements of
Work defining additional Services (including technical and deliverable requirements of the
Services) to be performed by the Consultant, Deliverables (as defined below) to be provided by
the Consultant, additional terms and conditions, if any, applicable to a particular engagement and
such other details as the parties deem appropriate (each, an "Additional Statement of Work").
Each Additional Statement of Work shall be attached hereto as consecutively numbered
Schedules A (e.g., Schedule A-1, Schedule A-2, etc.), shall be incorporated herein, and shall be
subject to the terms and conditions of this Agreement as a "Statement of Work" hereunder. No
Statement of Work shall be binding unless agreed to in writing by both parties and may be
amended from time to time by mutual written agreement of the Parties. In case of a conflict
between the provisions of this Agreement and any provision of any Statement of Work, the
provision of the Statement of Work shall apply. The Consultant is not authorized under any
circumstances to perform work under this Agreement without a duly executed Statement of Work.
Additionally, the Consultant is not authorized to exceed the approved Not-to-Exceed Ceiling
Amounts listed on the applicable Statement of Work unless prior written approval is received from
the Association.
1.2 Best Efforts. The Consultant and the employees assigned to perform Services
hereunder have and shall continue to have the knowledge, experience and skill to provide, and
shall provide, the Services in a professional and timely manner. The Consultant shall use its best
efforts to perform the Services for the Association, and to provide the Deliverables to the
Association, in accordance with the schedule set forth in the applicable Statement of Work.
1.3 Location and Access. Except as otherwise stated in a Statement of Work, the
Consultant may perform the Services at the Association's premises, the Consultant's premises or
such other premises that the Association and the Consultant may deem appropriate. The
Association shall permit the Consultant to have reasonable access to the Association's premises,
personnel and computer equipment for the purposes of performing the Services at the
Association's premises.
1.4 Records and Reports. The Consultant shall keep accurate records of its activities
under this Agreement and shall make such records available to the Association upon request.
Upon request, Consultant will provide copies of any of its work product created in support of its
reports or opinions in this matter upon full payment of all outstanding invoices. The Parties agree
that any written reports, memoranda or analyses prepared by the Consultant, will only be used
for purposes of the above-referenced matter and only with Consultant's consent. The Association
will inform Consultant of any applicable legal requirements related to the performance of services
by Consultant in this matter and coordinate with Consultant concerning any scheduling and
deadlines relevant to our work. Consultant does not provide any assurance as to the outcome of
its analyses, or its ability to support any particular position.
2. PAYMENT
2.1 General. The Association agrees to compensate the Consultant for the Services that
it performs pursuant to the Statement of Work or any Additional Statement of Work in accordance
with the payment terms set forth in Schedule A attached hereto and incorporated herein by
reference. Payment shall be made only for work that has been performed satisfactorily and in
accordance with the terms of the Statement of Work. The Consultant shall be solely responsible
for complying with all federal, state, local and other tax laws and regulations applicable to any
payments received from the Association under this Agreement.
2.2 Disputes. The Association agrees that Consultant will not be liable to the Association
for any claims or amounts relating to this matter in excess of the fees actually paid to Consultant
within the twelve month period preceding the assertion of a claim for such fees in a judicial
proceeding. Further, the Parties agree that any question or dispute with respect to the time or
expense reflected on any invoice must be presented in writing within sixty (60 days of the invoice
date) or such claim is considered waived.
3. EMPLOYEES
(a) Services provided by Consultant pursuant to this Agreement will be performed only by its
direct employees who are employees of the Consultant and not employees of the Association.
The Consultant may staff the engagement with various Consultant employees as it deems
necessary to accomplish the purposes of this agreement (collectively, "Consultant Team
Members").
(b) Consultant shall at all times be solely responsible for the performance and activities of
such Consultant Team Members and for all their salaries, benefits, and compensation.
(c) The Consultant on behalf of itself and its employees, including the Consultant Team
Members, shall ensure that all employees, including the Consultant Team Members, who perform
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Services under this Agreement adhere to all of the provisions of this Agreement as if such
provisions were expressly binding upon each such Consultant Team Member, individually.
3.2 Personnel The consultant agrees to staff the engagement with employees who
are properly trained, skilled, and knowledgeable to perform the work agreed to under the
Statement of Work. In the event the Association is at any time dissatisfied with any Consultant
Team Member, the Consultant agrees to promptly remove and, if requested by the Association,
to use its best efforts to replace such personnel of the Consultant.
3.3 Compliance with Certain Laws. The Consultant shall comply with the requirements
of 41 CFR 60-1.4(a), 60-300.S(a), and 60-741.S(a). These regulations prohibit discrimination
against qualified individuals based on their status as protected veterans, or as individuals with
disabilities, and prohibit discrimination against all individuals based on their race, color, religion,
sex or national origin. Moreover, these regulations require that the Consultant take affirmative
action to employ and advance in employment individuals without regard to race, color, religion,
sex, national origin, protected veteran status or disability.
4. RESTRICTIVE COVENANTS
4.3 Confidentiality. The Consultant on behalf of itself and its employees, including the
Consultant Team Members, shall at all times, both during the period while the Consultant
performs Services hereunder and after the termination of this Agreement and the termination of
the Consultant's engagement hereunder for any reason or for no reason, maintain in confidence
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and shall not, without the prior written consent of the Association, use, except in connection with
the provision of Services hereunder or otherwise required by court order, disclose or give to others
any Confidential Information. The terms of this Section 4.3 are in addition to, and not in lieu of,
any statutory or other contractual or legal obligation that the Consultant may have relating to the
protection of the Association's Confidential Information. The terms of this Section 4.3 shall survive
indefinitely any termination of this Agreement and/or any termination of the Consultant's
engagement hereunder for any reason or for no reason.
5.1 Compliance with Laws. Each Party agrees that it, as well as any employees acting
on its behalf who will be involved in the Services under this Agreement, will conduct all business
and activities and maintain all records in full compliance with all applicable laws, statutes,
regulations or ordinances of the U.S. Government or any federal, state or local governmental
agency including obtaining all business permits and licenses that may be required to carry out the
Services to be performed under this Agreement.
(a) that it has the full right, power and authority to enter into this Agreement, to
grant the rights and licenses granted herein and to perform fully all of its obligations
hereunder;
(b) the execution and performance of this Agreement shall not constitute a
breach or default under any contract or instrument to which the Consultant is a party, or
by which it is bound, and the Consultant is under no contractual or other obligation to any
third party which would prevent or limit its performance of Services under this Agreement;
(c) that it and the employees, including the Consultant Team Members,
assigned to perform Services hereunder have and shall continue to have the knowledge,
experience and skill to provide, and shall provide, the Services in a professional and timely
manner and the Services shall conform to the highest standards of workmanship in
accordance with best recognized industry standards for similar services and the
specifications set out in the Statement of Work.
(d) to the best of our knowledge, that neither it nor its employees, including the
Consultant Team Members, performing services hereunder (i) has or have committed any
act of embezzlement, theft, forgery, bribery, falsification or destruction or records or
documents, or made any false statements or received stolen property; and (ii) is not
presently under indictment for, or otherwise criminally or civilly charged by any
governmental agency or other entity or person with, any of the foregoing offenses;
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(e) the Association will receive good and valid title to all Deliverables, free and
clear of all encumbrances and liens of any kind subject to the restrictions set forth in
Section 1.4; and
6. INDEMNITY
6.1 General Indemnity. The Consultant agrees that it shall defend, indemnify and hold
harmless the Association and its affiliates, and their members, managers, officers, directors,
employees, customers, representatives, attorneys, agents, and successors and assigns (each a
"Association lndemnitee"), from and against any and all damages, demands, expenses, claims,
liabilities, injuries, suits, and proceedings, including, without limitation, including reasonable
attorneys' fees and the cost of enforcing any right to indemnification hereunder and the cost of
pursuing any insurance providers ("Losses") arising out or related to the Consultant's breach of
any representation, warranty or obligation under this Agreement. Further, the Association agrees
to indemnify and hold Consultant harmless from all third-party claims relating to this engagement
except to the extent: 1) otherwise covered by the Consultant's Commercial General Liability
Insurance required by this Agreement; or 2) caused by the Consultant's gross negligence or
intentional act.
6.2 Patent and Copyright Indemnity. The Consultant agrees that it shall defend,
indemnify and hold harmless the Association lndemnitees from and against any and all Losses
based on a claim that any Services or Deliverables or the Association's receipt or use thereof
constitutes an infringement of any trademarks, trade secrets, patent, copyright, intellectual
property or any other right of any third party. If any such property is held to constitute an
infringement and the exercise of rights thereto is enjoined, the Association may require that the
Consultant, at its sole expense, (a) obtain for the Association the right to continue exercising such
rights to such property, (b) modify such property so that it does not infringe, or (c) accept the
Association's return of such property and grant the Association a full credit therefor and reimburse
the Association for all reasonable costs and expenses for removal and replacement of such
property.
7.1 Term. This Agreement shall be effective on the Effective Date and shall continue
in full force and effect until completion of the Services specified in the Statement of Services
unless earlier terminated as permitted herein.
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7.2 Termination for Convenience. This Agreement may be terminated at any time by
either party upon 30 days written notice. Upon termination, the Consultant shall not be entitled to
receive any further payments other than for Services rendered to, and costs and expenses
incurred on behalf of, the Association prior to the date of termination of this Agreement, all in
accordance with any applicable Statement of Works.
7.3 Termination for Breach. If one party defaults in the performance of, or fails to
perform, any of its material obligations under this Agreement, and such default is not remedied
within 30 days of the receipt of written notice from the non-defaulting party, then the non-defaulting
party shall have the right to terminate this Agreement upon written notice and avail itself of any
and all rights and remedies to which it may be entitled in accordance with the applicable provisions
of Section 10.
7.4 Termination for Bankruptcy. Either party may terminate this Agreement effective
immediately without liability upon written notice to the other if any one of the following events
occurs: (a) the other party files a voluntary petition in bankruptcy or an involuntary petition is filed
against it, (b) the other party is adjudged a bankrupt, (c) a court assumes jurisdiction of the assets
of the other party under a federal reorganization act, (d) a trustee or receiver is appointed by a
court for all or a substantial portion of the assets of the other party, e) the other party becomes
insolvent or suspends business, or (f) the other party makes an assignment of its assets for the
benefit of its creditors.
8. NOTICES
All notices, requests, consents and other communications hereunder which are required to
be provided, or which the sender elects to provide, in writing, shall be addressed to the receiving
party's address set forth below or to such other address as a party may designate by notice
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hereunder, and shall be either (a) delivered by hand, (b) made by facsimile or email transmission,
(c) sent by overnight courier, or (d) sent by registered or certified mail, return receipt requested,
postage prepaid. All notices, requests, consents and other communications hereunder shall be
deemed to have been given either (i) if by hand, at the time of the delivery thereof to the receiving
party at the address of such party set forth below, (ii) if made by facsimile or email transmission,
at the time that receipt thereof has been acknowledged by electronic confirmation or otherwise,
(iii) if sent by overnight courier, on the next business day following the day such notice is delivered
to the courier service, or (iv) if sent by registered or certified mail, on the fifth business day following
the day such mailing is made.
9.1 Entire Agreement. This Agreement and Schedule A: Statement of Work, attached
hereto and incorporated by reference herein, and any subsequent Additional Statement of Works,
as amended, embody the entire agreement and understanding between the Parties hereto with
respect to the subject matter hereof and supersede all prior oral or written agreements and
understandings relating to the subject matter hereof. No statement, representation, warranty,
covenant or agreement of any kind not expressly set forth in this Agreement, or any Statement of
Work or Additional Statement of Work shall affect, or be used to interpret, change or restrict, the
express terms and provisions of this Agreement.
9.2 Modifications and Amendments. The terms and provisions of this Agreement may
be modified or amended only by written agreement executed by the Parties hereto.
9.3 Waivers and Consents. The terms and provisions of this Agreement may be
waived, or consent for the departure therefrom granted, only by written document executed by
the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be
deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions
of this Agreement, whether or not similar. Each such waiver or consent shall be effective only in
the specific instance and for the purpose for which it was given, and shall not constitute a
continuing waiver or consent.
9.4 Assignment. The Consultant's rights and obligations under this Agreement may
not be assigned or subcontracted without the prior written consent of the Association and any
such attempted assignment or subcontracting by the Consultant without the prior written consent
of the Association shall be void.
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9.5 Benefit. All statements, representations, warranties, covenants and agreements
in this Agreement shall be binding on the Parties hereto and shall inure to the benefit of their
respective successors and permitted assigns. Nothing in this Agreement shall be construed to
create any rights or obligations except between the Parties hereto, the Association and the parties
entitled to indemnification hereunder, and no other person or entity shall be regarded as a
third-party beneficiary of this Agreement.
9.6 Governing Law. This Agreement and the rights and obligations of the Parties
hereunder shall be construed in accordance with and governed by the law of the
Commonwealth of Virginia, without giving effect to the conflict of law principles thereof.
9.7 Jurisdiction. Venue and Service of Process. Any legal action or proceeding with
respect to this Agreement shall be brought in the courts of the Commonwealth of Virginia or of
the Eastern District of the United States of America for the Commonwealth of Virginia. By
execution and delivery of this Agreement, each of the Parties hereto accepts for itself and in
respect of its property, generally and unconditionally, the exclusive jurisdiction of the aforesaid
courts. Each of the Parties hereto irrevocably consents to the service of process of any of the
aforementioned courts in any such action or proceeding by the mailing of copies thereof by
certified mail, postage prepaid, to the party at its address set forth in Section 10 hereof.
9.1 O Headings and Captions. The headings and captions of the various subdivisions of
this Agreement are for convenience of reference only and shall in no way modify, or affect the
meaning or construction of, any of the terms or provisions hereof.
9.11 Injunctive Relief. The Consultant hereby expressly acknowledges that any breach or
threatened breach of any of the terms and/or conditions set forth in Section 4 or 5 of this Agreement
shall result in substantial, continuing and irreparable injury to the Association. Therefore, in addition
to any other remedy that may be available to the Association, the Association shall be entitled to
injunctive or other equitable relief by a court of appropriate jurisdiction in the event of any breach or
threatened breach of the terms of Section 4 or 5 of this Agreement. The period during which the
covenants contained in Section 4 shall apply shall be extended by any periods during which the
Consultant is found by a court to have been in violation of such covenants.
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9.12 No Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto
in exercising any right, power or remedy under this Agreement, and no course of dealing between
the Parties hereto, shall operate as a waiver of any such right, power or remedy of the party. No
single or partial exercise of any right, power or remedy under this Agreement by a party hereto,
nor any abandonment or discontinuance of steps to enforce any such right, power or remedy,
shall preclude such party from any other or further exercise thereof or the exercise of any other
right, power or remedy hereunder. The election of any remedy by a party hereto shall not
constitute a waiver of the right of such party to pursue other available remedies. No notice to or
demand on a party not expressly required under this Agreement shall entitle the party receiving
such notice or demand to any other or further notice or demand in similar or other circumstances
or constitute a waiver of the rights of the party giving such notice or demand to any other or further
action in any circumstances without such notice or demand.
9.13 Independent Consultant. The Association and the Consultant agree that the
relationship of the Consultant to the Association is at all times that of an independent Consultant
and not that of an employee, agent, partner or joint-venturer of or with the Association. The
Consultant acknowledges that it shall hold no authority, express or implied, to commit, obligate or
make representations on behalf of the Association and shall make no representation to others to
the contrary. The Consultant also acknowledges that neither it nor any of its employees is or shall
be entitled to any benefits that may be afforded to employees of the Association from time to time,
including, without limitation, any insurance, employee benefit plans, fringe benefits or Association
policies that may be in effect from time to time, and the Association shall not be responsible for
withholding or paying any income, payroll, Social Security or other federal, state or local taxes,
making any insurance contributions, including unemployment or disability, or obtaining worker's
compensation insurance on behalf of the Consultant or any of its employees.
9.14 Time is of the Essence. Time is of the essence with respect to the parties'
obligations hereunder. The Consultant shall notify the Association in writing immediately if at any
time it appears to the Consultant that it may not meet a required performance schedule.
9.15 Counterparts. This Agreement may be executed in one or more counterparts, and
by different parties hereto on separate counterparts, as well as via PDF or facsimile, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.
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IN WITNESS WHEREOF, the Parties have set their hands and seals to this Agreement as of the
Effective Date.
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SCHEDULE A
STATEMENT OF WORK
1. SERVICES: The Consultant shall prepare and deliver to the Association deliverables and
reports in accordance with the requirements, quantities and schedules detailed herein.
The Consultant is to review the processes and internal controls that were followed across
the Association (including by the Association's staff, its Board of Directors, and any
contractors or consultants of the Association) related to the decision-making, governance,
administrative and financial aspects of the Association's purchase, (including the
referendum), planned use, and renovation of Tetra (now known as the Lake House
property and referred to herein as the "Tetra/Lake House Project").
The review will include all materials and documents deemed necessary by the Consultant
and/or shared with the RA Board and the public related to the Tetra/Lake House Project.
The Consultant will review the accuracy of budgets and other information provided in the
referendum by the Association to its members and the Board, as well as the process
utilized to prepare those documents. The Consultant will also review the steps taken for
the acquisition, repair, and remodeling related to the Tetra/Lake House Project to assess
whether appropriate financial, budgeting, accounting and project managemenUcontrols
were followed.
The Consultant will conduct interviews with all Association staff, Board members,
committee members, and other third parties substantially involved in the Tetra/Lake House
Project as well any other individuals (including members of the Reston community), as the
Consultant deems necessary and appropriate.
2. SCHEDULE: The Consultant shall perform the Services in accordance with the following
schedule, unless otherwise agreed by the Parties.
Completion Date
3. DELIVERABLES:
The Consultant will prepare and deliver a final report (and any applicable templates and
checklists) which will include, at a minimum, all findings resulting from:
1) reviewing the accuracy of budgets and other information provided in the referendum
for the Tetra/Lake House Project by the Association to its members and the Board,
as well as the process utilized to prepare those documents;
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2) reviewing the steps taken for the acquisition, planning, repair, and renovation of the
Tetra/Lake House Project to assess whether appropriate financial, budgeting,
accounting and project management/controls were followed; and
3) making such recommendations for revising, modifying and/or supplementing the
processes, internal controls and governance procedures of the Association to ensure
future large-scale projects are (a) accurately budgeted and (b) conducted in
accordance with best generally accepted principles and practices for similarly
situated not-for-profit organizations.
5. PAYMENT TERMS: Unless and to the extent otherwise set forth in any addendum to this
Schedule A, as applicable, the Consultant shall be paid at an hourly rate pursuant to time
spent and calculated to the nearest tenth (1/10) of each hour, based on the hourly rates
set forth below for this project, up to a maximum total dollar amount of $45,000 upon
completion of the Services under this Agreement. In no event shall Consultant be paid
more than $45,000.00 under this Agreement. The hourly rates to be charged are as
follows:
Partner/Principal $575
Managing Director $400
Manager $325
Senior Consultant $250
Consultant $200
All invoices shall be submitted directly to the Association Accounts Payable Department
upon completion of the work under this Agreement. All invoices shall be paid in US dollars
unless otherwise agreed upon in a schedule to this Agreement. Payment shall be net 30
days after completion of the work under this Agreement and receipt of a complete invoice
by the Association.
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6. INSURANCE:
The Consultant shall, at its own expense, at all times during the term of and work
contemplated by this Agreement, provide and maintain in effect: 1) Commercial General
Liability Insurance Coverage with a limit of not less than One Million Dollars
($1,000,000.00); and 2) Workers Compensation insurance as required by law. The
Consultant shall forward to Association a Certificate of Insurance verifying such coverage
within five (5) days of the Effective Date.
7. POINTSOF CONTACT:
The name and contact information for the person(s) within each organization responsible
for this Statement of Work:
IN WITNESS WHEREOF, the Parties have set their hands and seals to this Statement of Work
as of this~ay of .:!AiJU!ff.Jt, 2017.
C' 0. . JJ.tiid.Ol::{~
-c:e; x:.)N;lt!?J
Ellen Graves
By:
Deirdre A. Flaherty
President Partner
Taxpayer ID Number: 20-0892304
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