City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: APRIL 19, 2022 FROM: FINANCE DEPARTMENT WARDS: ALL
SUBJECT: FIRST AMENDMENT FOR A PROFESSIONAL CONSULTANT SERVICES AGREEMENT WITH HR&A ADVISORS, INC., TO PROVIDE ADVISORY SERVICES FOR THE CITY TO EVALUATE AND EXECUTE A PUBLIC-PRIVATE PARTNERSHIP – INTERDEPARTMENTAL TRANSFER ISSUE:
Approval of the first amendment for the Professional Consultant Services Agreement with HR&A Advisors, Inc., to extend the term to December 31, 2022, and amend Exhibit B, Compensation whereby increasing the agreement compensation by $35,000 for a total agreement amount of $135,000.
RECOMMENDATIONS:
That the City Council:
Approve the first amendment to the Professional Consultant Services Agreement with HR&A Advisors, Inc., to extend the term of the agreement to December 31, 2022, and increase the compensation amount by $35,000 for a total agreement amount of $135,000; With five affirmative votes, authorize an interdepartmental transfer from the General Fund, Non-Departmental, City Manager-Gen Government to the General Fund, Community and Economic Development Department, Riverside Alive project in the amount of $35,000; and Authorize the City Manager, or his designee, to execute the first amendment with HR&A Advisors, Inc., to the Professional Consultant Services Agreement, including making minor and non-substantive changes.
BACKGROUND:
On April 27, 2021, the City Council approved a Professional Consultant Services Agreement (Agreement) with HR&A Advisors using Purchasing Resolution 23256, Section 702 (k) which states that “Competitive Procurement through the Informal Procurement and Formal Procurement process shall not be required when the Awarding Entity waives bidding requirements under and according to the circumstances set forth in Section 1109 of the City Charter, or when it is determined by the Manager to be in the best interest of the City to do so.” This bid award was crucial to the financial success of the project while ensuring the City mitigates potential risk and adheres to numerous time constraints.
DISCUSSION:
As the City continues to advance the Riverside Alive project the enormity and the complexity of the project requires additional analysis and insight from HR&A advisors a preeminent public private partnership consultant. Due to the lingering effects of the Pandemic the project scope has been modified requiring additional analysis and vetting of project feasibility.
Since the initial contract agreement was issued in April of 2021, two significant changes to the proposed development have transpired. First, the private development proposed reducing its total development, including a reduction in the number of hotel keys, number of parking stalls, and size of the creative office tower. Additionally, the developer has proposed adjusting the phasing of the project to further delay some of the multifamily development. Given the analysis HR&A provided to the City last year, these changes alter the projected financial outcome of the project to the City by reducing expected fiscal revenues.
Second, in response to feedback from City Council, the public developer has proposed a 100,000 SF expansion to the existing Riverside Convention Center (RCC) and the construction of an outdoor amphitheater adjacent the RCC consistent with the initial Riverside Alive proposal. This expanded construction program is in addition to the construction of a parking facility across Orange Street. As part of this proposal and to advance this project, the developer has proposed a Pre-Development Agreement (PDA) for a ‘progressive design-build’ procurement of the public facilities, which will be followed by executing a Development Agreement at a later time. The City is seeking HR&A’s advice in reviewing this document and the proposed procurement method.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority No. 5 – High Performing Government and Goal No. 5.3 – Enhance communication and collaboration with community members, to improve transparency, build public trust, and encourage shared decision-making.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – Ensuring that public private partnership agreements are completed in the best interest of the City provides for transparency and makes decisions based on sound policy, and timely and reliable information serving the public interest.
Equity – The Riverside Alive project will be accessible to all members of the community.
Fiscal Responsibility – Utilizing a special P3 consultant helps to ensure that the City does not extend itself financial and invests in project with positive returns to the community.
Innovation – The Riverside Alive project is an innovative way to plan and offset the cost to support new development with the City.
Sustainability & Resiliency – The public private partnership project will meet certain needs for housing as well as increased business opportunities.
FISCAL IMPACT:
The fiscal impact of this action is $35,000. Upon Council approval, and interdepartmental transfer will be recorded from the General Fund, Non-Departmental, City Manager-Gen Government expenditure account number 7211200-450247 to the General Fund, Community & Economic Development Department, Riverside Alive project expenditure account 9918900-421000.
Prepared by: Edward Enriquez, Chief Financial Officer/Treasurer Certified as to
availability of funds: Kristie Thomas, Assistant Chief Financial Officer Approved by: Kris Martinez, Deputy City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
First Amendment
Very Brief Title of Report ● Page 3