City Council
Report
City Council Meeting: June 27, 2017
Agenda Item: 3.F
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To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development, Economic Development Division
Subject: Modification to Professional Services Agreement for Real Estate and Economic Development Consultant
Recommended Action
Staff recommends that Council authorize the City Manager to negotiate and execute a third modification to Professional Services Agreement Number 9543 in the amount of $100,000 with Allan D. Kotin & Associates, a California-based company, for economic consulting and financial analysis. The proposed modification would result in a five-year amended agreement with a new total amount not to exceed $300,000, with future-year funding contingent on Council budget approval.
Executive Summary
Allan D. Kotin & Associates has been the real estate and economic development consultant to the City on a variety of projects including the Civic Center Sports Field and Fourth Street Cinema. Staff recommends modifying the professional services agreement with Allan D. Kotin & Associates to increase its contract authority by $100,000, for a total amount not to exceed $300,000, in order to continue to provide analytical support for City projects and endeavors.
Background
The City of Santa Monica Housing and Economic Development Department’s Economic Development Division periodically requires specialized real estate and financial consulting services to advise staff and Council on complex property transactions involving leasing, development, and the formulation of public/private development partnerships. Examples include the Civic Center sports field, Downtown cinema development, and Civic Auditorium renovation.
In December 2011, staff issued a Request for Qualifications (RFQ) from economic and financial consulting teams that could advise staff on complex real estate transactions such as redevelopment of the Fourth Street at Arizona Avenue site, revitalization of 2 of 3
Bergamot Station Arts Center, and renovation of the Civic Auditorium. The real estate and economic consulting firm of Allan D. Kotin & Associates was recommended because of its extensive experience with providing economic and financial solutions to both the public and private sectors.
On January 24, 2012 (Attachment A), Council authorized staff to execute professional services agreement number 9543 with Allan D. Kotin & Associates in the amount of $70,000. A first modification was executed on June 26, 2014 to extend the term to June 30, 2016. At its June 23, 2015 meeting (Attachment B), Council authorized a second modification to the existing professional services agreement number 9543 to extend the term to December 31, 2019, and increase its contract authority by $130,000 for a total amount not to exceed $200,000.
Discussion
Allan D. Kotin & Associates has provided real estate financial analysis and economic development advice to the City on a variety of complex property transactions and development proposals including the Civic Center Sports Field and Fourth Street Cinema.
A third modification to the existing professional services agreement number 9543 is proposed to enable the firm to continue its economic and financial advisory services to the City in order to assist in the review of the upcoming solicitation of proposals for the renovation of the Civic Auditorium and other real estate analysis as required.
Staff seeks authorization to modify the professional services agreement to increase the contract amount by $100,000 for a total budget authority not to exceed $300,000.
Vendor/Consultant Selection
The firm, Allan D. Kotin & Associates, was chosen through an RFQ process in 2011.
The firm was selected based on its extensive economic development experience consulting for both the public and private sectors. The firm’s advice and analysis have been extremely helpful in assisting the City in structuring business terms that protect the City’s interests while yielding the greatest economic benefit. 3 of 3
Financial Impacts and Budget Actions
The contract modification to be awarded to Allan D. Kotin & Associates is $100,000, for an amended contract total not to exceed $300,000. Funds are included in the FY 2017-18 Proposed Budget in the Housing and Economic Development Department.
The contract will be charged to account 012681.555060. Future-year funding is contingent on Council budget approval.
Prepared By: Erika Cavicante, Senior Development Analyst Approved Forwarded to Council
Attachments:
A. Council Report 1/24/2012
B. Council Report 6/23/2015
C. Oaks Initiative Allan D. Kotin & Assoc.