Agenda Report
Fullerton City Council
MEETING DATE: February 6, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: Sunayana thomas, director of community and economic development PREPARED BY: Taylor samuelson, senior administrative analyst SUBJECT: professional services agreements for on-call real estate and land use financial advisory services
SUMMARY
Staff requests City Council approve professional services agreements with consultant firms for on-call real estate and land use financial advisory services to support department operations including potential development assessments, surplus land and planning initiatives and program assessment.
PROPOSED MOTION
Authorize City Manager, or designee, to execute Professional Services Agreements and future amendments, including extension options, for On-Call Real Estate and Land Use Financial Advisory Services, in a form approved by the City Attorney, with the following firms:
Keyser Marston and Associates
Cushman and Wakefield
Kosmont Companies
RSG Inc
Housing on Merit.
Authorize Director of Administrative Services, or designee, to issue purchase orders to the firms in an amount not to exceed the approved Community and Economic Development department budgets for the fiscal year on an as-needed basis.
ALTERNATIVE OPTIONS
Approve Proposed Motion
Deny professional service agreements and recommend City re-post the Request for Qualifications for this scope of service with specific direction Approve only specific firms based on findings
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
The City Manager recommends proposed motion.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
This item generates no additional fiscal impact. The Community and Economic Development Department Fiscal Year 2023-24 operating budget in the General Fund (Fund 10), Housing Fund (Fund 26) and Community Development Block Grant Fund (CDBG – Fund 35) include costs for professional services which cover these services.
BACKGROUND AND DISCUSSION
The Community and Economic Development department ensures orderly and safe development in the City and provides for future growth. The department routinely requires subject matter experts on real estate and land use financial services, specifically related to a third-party analysis of potential developer economic feasibility and long-range planning efforts. The City has relied on small contracts for project-specific needs. Establishing an on-call list streamlines this process and ensures the City uses competitive and cost-effective options.
The Community and Economic Development Department posted a Request for Qualifications (RFQ #2324-03) on November 3, 2023 to solicit proposals from firms specializing in real estate and land use financial advisory services. RFQ #2324-03 (attached) contains the scope of work and on-call services sought from firms.
The scope of services range from market analysis and best use reports including trends and projections, options for property dispensation, prioritization and assistance with marketing strategies, support City representation in sale transactions and private development analysis. Work for private developments can include assessing developer ability to finance land acquisition and project buildouts, supporting housing law compliance and assisting with objective feasibility analysis. The attached RFQ contains a detailed deliverables outline.
The City received five qualified proposals on November 20, 2023. Staff evaluated the proposal qualifications including key personnel professional experience, previous project experience, experience working with similar agencies and fee rates. Staff found the following firms qualified to provide services and recommends them, listed in alphabetical order:
Cushman and Wakefield Western
Housing on Merit
RSG Inc.
Keyser Marston and Associates
Kosmont Companies.
The proposed agreements would have a five-year term with an option to extend the agreement for two additional one-year extensions upon satisfactory performance determined by the City. The agreements identify set hourly rates for services and require the City to provide advance notice for any changes throughout the agreements.
Attachments:
Attachment 1 – RFQ #2324-03
cc: City Manager Eric J. Levitt
Professional Services Agreements for On-Call Real Estate Financial Advisory Services February 6, 2024 - Page 2