November 1, 2022
Community Development
DATE: November 1, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Jesus M. Morales, Housing Manager
SUBJECT:
On-Call Financial and Economic Analyses Services
FINANCIAL IMPACT: The payment limit for each contract shall not exceed $50,000 per firm for one year. The cost associated with preparing financial and economic analyses related to real property negotiations will be charged to developers to
facilitate and fast track applicant proforma review and evaluation.
PREVIOUS COUNCIL
ACTION:
None
STATEMENT OF THE
ISSUE:
City staff is requesting authorization to enter into standing contracts for as-needed financial and economic analyses related to real property negotiations.
RECOMMENDED ACTION:
ADOPT a resolution authorizing contracts for on-call
financial and economic analyses services, for an amount not to exceed $50,000 per vendor, including Land Econ
Group, David Paul Rosen & Associates, and CSG
Advisors, for a one-year term, November 1, 2022,
through October 31, 2023, with an option to extend the
contract term date for one year – Community
Development (Lina Velasco/Jesus M. Morales 510-620-
6706).
AGENDA
REPORT
November 1, 2022
DISCUSSION:
On September 8, 2022, the Community Development Department solicited a Request for Quotes (RFQ) for On-Call Financial and Economic Analyses Services. The RFQ was sent to three vendors via email as an informal solicitation. The RFQ responses were due on September 16, 2022. There were three respondents to the RFQ: Land Econ Group (LEG), David Paul Rosen & Associates (DRA), and CSG Advisors (CSG).
The RFQ was sent to financial services firms that have provided similar services to the City of Richmond or other local cities. The firms are well known and experienced around financial and economic analysis as it relates to proposed market rate and affordable residential, commercial, and mixed-use developments projects. Two of the firms, LEG and DRA, are currently providing financial consulting services to the City on three major developments: Terminal One, 12th and Macdonald, and Miraflores. Prior contracts are exceeding the initial contract amounts and it is essential to keep the proposed developments on track by ensuring the financial services consultants are readily available to assist City staff with the financial analysis related to the on-going real property negotiations. CSG has previously provided similar services to the Richmond Housing Authority and City staff has worked with them in a similar capacity at another city. Having these highly experienced firms on call will allow for timely and well vetted financial and economic analysis on complex development proposals to inform the City’s real property negotiations.
The three responding firms are being recommended for approval of on-call contract services.
The firms are:
1. Land Econ Group
2. David Paul Rosen & Associates
3. CSG Advisors
Each service contract will be for an amount not-to-exceed $50,000 over a one-year term, from November 1, 2022 through October 31, 2023, with an option to extend the contracts for one year . On -call financial services contracts will assist the Housing Division in completing timely review of complex financial development proformas. In addition, having on-call contracts will save City staff time needed to bid work on a project-by-project basis.
This is critical in completing timely real property negotiations.
DOCUMENTS ATTACHED:
Attachment 1 - Resolution for On-Call Financial and Economic Analyses Services Attachment 2 - Informal Solicitation for Request for Qualifications (RFQ) and RFQs Received
Attachment 3 - RFQ Memo Selection