Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00224 March 1, 2022 Consent Item 05
Title: Contract Amendment for Dangberg Consulting Services LLC Location: District 4
Recommendation: Pass a Motion authorizing the City Manager or City Manager’s designee to execute Contract Amendment #3 to City Contract Number PRC000644 with Dangberg Consulting Services LLC for an amount not to exceed $83,375 for a new total not-to-exceed amount of $432,375.
Contact: Marco Gonzalez, Senior Development Project Manager, 916 808-5757, [email protected], Office of Innovation and Economic Development, Leslie Fritzsche, Economic Investment Manager, 916 808-5450, [email protected], Office of Innovation and Economic Development.
Presenter: None
Attachments:
1-Description/Analysis
2-Supplemental Contract Amendment #3
File ID: 2022-00224 Consent Item 05
March 1, 2022
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City of Sacramento
Description/Analysis
Issue Detail: In October 2019, the City entered into a professional services contract with Dangberg Consulting Services LLC (“Dangberg”) to perform strategic analysis and deal negotiation for the potential location of a new Major Leagues Soccer (MLS) team and accompanying stadium in Sacramento. In October 2020 that contract was extended until October 2021 with a maximum contract amount of $249,000. The contract scope was also extended to include work on other key City projects including Aggie Square. In June 2021 that contract was amended with a maximum contract amount of $349,000.
Work on the Major Leagues Soccer (MLS) project has been intensive and involved significant hours of discussion, development of term sheets and review of accompanying legal and financial documents. As a result, the funds under the contract and the previous supplemental agreements have been exhausted. Staff is recommending execution of an additional amendment for $83,375 which will include anticipated expenses for work on MLS and the Railyards through June 2022.
Policy Considerations: The recommendation in this report is in accordance with City Code chapter 3.64 and the City’s Professional Services Policy API-4102, Section 1.5(g) concerning Council approval of Professional Services agreements that are $250,000 or more.
Economic Impacts: None
Environmental Considerations: The proposed action is exempt from the provisions of the California Environmental Quality Act (CEQA), consistent with section 15378(b)(5) of the CEQA Guidelines, which provides that organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment are not subject to environmental review.
Sustainability: None
Commission/Committee Action: None
Rationale for Recommendation: Dangberg has played a vital role in the discussions, negotiation and deal structuring of key Sacramento projects. These projects will have major economic and fiscal benefits to the City. His expertise and knowledge of various financial structures and the development process are critical to effectively working through the complex deal elements for these valuable projects. His involvement with MLS is vital to the continuation of discussions with potential new development interests.
File ID: 2022-00224 Consent Item 05
March 1, 2022
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City of Sacramento
Financial Considerations: Staff recommends utilizing department operational funds from the Office of Innovation and Economic Development Division for the proposed contract amendment (contract # PRC000644), increasing the professional services contract by $83,375, bringing the total budget to $432,375.
1 CONTRACT #: PRC000644-3
CONTRACT EFFECTIVE DATE: October 2, 2021
CONTRACT NAME: Major League Soccer (MLS) Economic Development Consulting CONTRACT PROJECT #: 02001411 & I80020500
DEPARTMENT: C
DIVISION: Office of Innovation and Economic Development The City of Sacramento ("City") and Dangberg Consulting Services, LLC ("Contractor"), as parties to that certain Contract designated as City Contract Number PRC000644, including any prior Contract Amendments modifying the Contract (the Contract and Contract Amendments are hereafter collectively referred to as the "Contract"), hereby amend and modify the Contract as follows:
1 SCOPE
The Services specified in the Scope of Services Exhibit of the Contract are not changed.
2 TIME OF PERFORMANCE
The term of the Contract is extended through and including June 30 th 2022 to provide additional time for completion of the Contract.
3 CONTRACT AMOUNT
The maximum not-to-exceed amount that is specified in the Contract is INCREASED by $83,375, and the Contract's maximum not-to-exceed amount is $432,375.
The original Contract sum was: $99,000
The net change by previous Contract Amendments was: $250,000 The Contract sum prior to this Contract Amendment was: $349,000 The Contract sum will be INCREASED by this Contract Amendment: $83,375 The new Contract sum including all Contract Amendments: $432,375
2 4 FULL COMPENSATION
Contractor agrees that the amount of increase or decrease in the not-to-exceed amount specified in section, above, shall constitute full compensation for the additional and/or revised Services specified in section, above, and shall fully compensate Contractor for any and all direct and indirect costs that may be incurred by Contractor in connection with such additional and/or revised Services, including costs associated with any changes and/or delays in work schedules or in the performance of other Services or work by Contractor.
5 AUTHORIZED SIGNATURE
Contractor warrants and represents that the person or persons executing this amendment on behalf of Contractor has or have been duly authorized by the Contractor to sign this amendment and bind Contractor to the terms hereof. 6 FULL FORCE AND EFFECT
Except as specifically revised herein, all terms and conditions of the Contract shall remain in full force and effect, and Contractor shall perform all of the services, duties, obligations, and conditions required under the Contract, as supplemented and modified by this amendment to the original agreement.