Administrative
Report
H.12., File # 23-6134 Meeting Date: 6/20/2023
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT DIRECTOR TITLE
APPROVE AN AMENDMENT TO THE AGREEMENT WITH KOSMONT & ASSOCIATES, INC. FOR REAL ESTATE CONSULTING SERVICES FOR AN ADDITIONAL AMOUNT OF $152,000, FOR A NEW NOT-TO-EXCEED TOTAL OF $214,425, AND TO EXTEND THE TERM TO JUNE 19, 2024
EXECUTIVE SUMMARY
As part of the of the City’s FY 2022-23 Adopted Budget, the City Council appropriated $62,425 of General Fund, Tidelands and Uplands Funds for as-needed professional services to support the City’s efforts related to waterfront real estate transactions and general economic development projects in the City. On August 16, 2022, the City entered into an agreement for Consulting Services with Kosmont & Associates, Inc. (Kosmont), to provide these advisory services. The existing Agreement is set to expire on August 15, 2023.
Additional term and money are required to utilize Kosmont for continued advisory support regarding a comprehensive leasing strategy for critical opportunity sites in the harbor and pier area, as well as advisory services for the AES powerplant site, South Bay Galleria, Artesia Corridor, general leaseholds, and other economic development projects in the City. The proposed first amendment would add an additional $152,000 to the Kosmont contract, bringing the total no-to-exceed amount to $214,425, and extend the term of the contract for one year, to June 19, 2024.
BACKGROUND
On December 2, 2014, the City of Redondo Beach (City) entered into an agreement for Consulting Services with Kosmont to provide advisory services to the City on various real estate and economic development matters.
The original 2014 Agreement had been amended ten times over an eight-year period and totaled $1,445,000 in expenses. In an effort to refresh the terms of the Agreement and ensure reasonable pricing, staff elected to pursue a new contract in 2022 rather than proceeding with another amendment. On August 16, 2022, the City entered into an agreement for consulting services with Kosmont to provide continued advisory services. The existing Agreement is set to expire on August 15, 2023.
Kosmont has over 25 years of consulting experience, and the firm's broad professional expertise has been invaluable given the scope and complexity of ongoing real estate, public finance and economic development activities in the City. Kosmont initially assisted the City with the preparation of two key documents that have served as the foundation for real estate activities within King Harbor, The Pier & Harbor Asset Management Plan (2007) and the Harbor Enterprise Business Plan (2010). In addition,
H.12., File # 23-6134 Meeting Date: 6/20/2023
Harbor Asset Management Plan (2007) and the Harbor Enterprise Business Plan (2010). In addition, Kosmont has served as the City's advisor during the reacquisition of several large leaseholds; advised the City on the waterfront revitalization effort; provided transaction support for the development of the Marine Avenue hotels and served as advisor for the reuse of the AES site.
A term extension and funding increase are required to utilize Kosmont for continued advisory support for the items mentioned above. With approval, Kosmont will also assist with the new strategic plan objective of developing a comprehensive leasing strategy for critical opportunity sites in the harbor and pier area. For these reasons, staff is recommending the City Council approve the proposed First Amendment which would add an additional $152,000 to the Kosmont contract bringing the total not-to -exceed amount to $214,425 and extend the term of the contract to June 19, 2024.
COORDINATION
The Waterfront and Economic Development Department collaborated with the City Manager’s Office on this report. The City Attorney’s Office approved the Agreement as to form.
FISCAL IMPACT
Funding for the contract amendment is available in the Department’s annual operating budget.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - First Amendment between the City of Redondo Beach and Kosmont Associates, Inc. · Agmt - Agreement between the City of Redondo Beach and Kosmont & Associates, Inc., August 16, 2022
· Agmt - Tenth Amendment for Consultant Services between the City of Redondo Beach and Kosmont & Associates, Inc., December 14, 2021
· Agmt - Ninth Amendment for Consultant Services between the City of Redondo Beach and Kosmont & Associates, Inc., January 19, 2021
· Agmts - 2014 Agreement and Amendments 1 - 8 for Consultant Services between the City of Redondo Beach and Kosmont & Associates, Inc.