Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: VANIAH DE ROJAS, ASSISTANT CITY MANAGER
DATE: MARCH 26, 2024
SUBJECT: APPROVAL OF AMENDMENTS TO EXISTING PROFESSIONAL
SERVICES AGREEMENTS AND A NEW PROFESSIONAL SERVICES
AGREEMENT WITH CERTAIN ECONOMIC DEVELOPMENT
CONSULTANTS
EXECUTIVE SUMMARY
The City Council will consider approving a professional services agreement as well as amendments to certain Professional Services Agreements with certain economic development consultants. In May 2023, the Downey Council approved Professional Services Agreements with qualified economic development consultants to augment City staff resources and tools. City staff is seeking to amend the agreements and issue a new agreement to extend the terms of the agreements and the not to exceed amounts in order to continue progress made in various economic development opportunities in the City of Downey.
RECOMMENDATION
That the City Council:
1. Approve an Amendment No. 2 to the Professional Services Agreement with Tierra West Advisors, Inc. to extend the term to a two (2) year term beginning on May 23, 2023; and authorize the City Manager, or his designee, to execute the Amendment No. 2.
2. Approve an Amendment No. 2 to the Professional Services Agreement with Kosmont & Associates, Inc., dba Kosmont Companies to extend the term to a two (2) year term beginning on May 23, 2023, broaden the scope, and change the total contract amount to a not to exceed amount of $50,000; and authorize the City Manager, or his designee, to execute the Amendment No. 2 to the Professional Services Agreement with Kosmont & Associates, Inc., dba Kosmont Companies in the amount of $50,000, including any non-substantive extensions, change orders, purchase orders, and amendments up to the authorized budget amount of $50,000.
PROFESSIONAL SERVICES AGREEMENT WITH ECONOMIC DEVELOPMENT CONSULTANTS MARCH 26, 2024
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3. Approve a Professional Services Agreement with Gilbert A. Livas, Inc. for a nine (9) month term beginning on April 1, 2024 and total contract amount not to exceed $63,000; and, authorize the City Manager, or his designee, to execute the Agreement with Gilbert A. Livas, Inc. including any non-substantive extensions, change orders, purchase orders, and amendments up to the authorized budget amount of $63,000.
BACKGROUND
Economic vibrancy is one of the five strategic priorities for the City of Downey. As such, the City has seen impressive growth in the community, from the millions of dollars invested in Downtown Downey, Downey Landing, Promenade at Downey, and along Firestone Boulevard to the hundreds of new jobs created throughout the City.
Though there have been exciting advances, the City is continuing to expand its economic development outreach efforts to attract big and small businesses to the City of Downey and fill key vacancy sites. These efforts help ensure that the City is a place where business can thrive and continue the City’s status as an economic leader in the region.
As part of these efforts, in early 2023, staff requested qualifications from consulting firms providing financial, real estate and economic analysis services, and reviewed proposals from the firms including consultant qualifications, fee schedules, and contacted references.
In order to maintain the City’s competitive edge, the Downey City Council has approved Professional Services Agreements with qualified economic development consultants to augment City staff resources and tools. In order to continue the City’s efforts to attract and retain high quality businesses, City Staff has prepared amendments to current Professional Services Agreements and a new Professional Services Agreement for consultant assistance broadening the scope of work and extending the time frame for services to be performed.
DISCUSSION
City staff has been utilizing the services of consulting firms that are “subject matter experts” in economic development, as well as financial and feasibility analyses of proposed development projects, assistance with development negotiations and examination of alternative financing structures.
Staff recommends approving Amendments to the Professional Services Agreements with Tierra West Advisors, Inc. (Attachment A) and Kosmont & Associates, Inc., dba Kosmont Companies (Attachment B), and a Professional Services Agreement with Gilbert A. Livas,
PROFESSIONAL SERVICES AGREEMENT WITH ECONOMIC DEVELOPMENT CONSULTANTS MARCH 26, 2024
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Inc. (Attachment C) to continue progress being made on various economic development opportunities in the City of Downey.
CITY COUNCIL PRIORITIES
Fiscal Responsibility
Economic Vibrancy
FISCAL IMPACT
Approval of the recommended action will result in an approximate expenditure of $40,000 from the Administration Department’s operating budget, Account No. 10-4-1210-0670 for Fiscal Year 2023-2024. Future budgets will incorporate the additional anticipated expenditures for these economic consulting services. There is sufficient fund balance for the recommended actions.
ATTACHMENTS
Attachment A – Tierra West Advisors Professional Services Agreement – Amendment No. 2
Attachment B – Kosmont & Associates, Inc., dba Kosmont Companies Professional Services Agreement – Amendment No. 2
Attachment C – Gilbert A. Livas, Inc. Professional Services Agreement
ATTACHMENT C
SECTION 32. INTERNAL INCONSISTENCIES.
If this Agreement contains any errors, inconsistencies with any attachments, ambiguities, or discrepancies, including typographical errors, CONSULTANT shall request a clarification of those items by writing to the City Manager whose decision shall be binding upon the parties.
SECTION 33. CAPTIONS AND HEADNOTES.
The captions and headnotes or sections of this Agreement, and marginal notes are intended for convenience and reference purposes only and in no way define, limit or describe the scope or intent of this Agreement.
SECTION 34. EFFECT OF CONFLICT. In the event of any conflict, inconsistency, or incongruity between any provision of this Agreement, any of its exhibits, attachments, purchase order, or notice to proceed, the provisions of this Agreement will govern and control. SECTION 35. SUBCONTRACTING.
CONSUL TANT shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of CITY. CONSUL TANT shall require and verify that all subcontractors maintain insurance meeting all of the requirements set forth in this Agreement. CONSUL TANT shall ensure that CITY is an additional insured on all insurance required from subcontractors. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
IN WITNESS WHEREOF, this Agreement for Professional Services has been duly authorized and executed by the parties hereto on the day and year first herein above written.
ATTEST:
Maria A. Duarte, CMC
City Clerk
APPROVED AS TO FORM: Jnl-1n✓-WJ Funk
City Attorney
"CITY"
CITY of Downey
By:---------------Roger Bradley
City Manager
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