1 FIRST MODIFICATION OF AGREEMENT NO. 11419(CCS)
This First Modification of Agreement Number 11419 (CCS) (“First Modification”), entered into as of _________________ (“Execution Date”), by and between the CITY OF SANTA MONICA (“City”), a California municipal corporation, and CORPORATE REALTY GROUP (“CRG”) is made with reference to the following:
RECITALS
A. On September 20, 2018, the City and CRG entered into a professional services agreement (agreement No. 10713) for commercial real estate brokerage and consulting services. Contract No. 10713 had an authorized total paid compensation amount of $1,145,039, including contingency. That amount would later be adjusted by the parties by an amendment to the agreement for a new total compensation amount of $1,148,322.
B. To comply with City’s procurement rules the City put out to bid the professional services that it was receiving from CRG. On March 10, 2023, the City issued an RFP for the selection of a vendor to provide real estate brokerage and consulting services for real property at the Airport.
C. On September 27, 2023, the City awarded RFP #349 to CRG and entered into Professional Services Agreement No. 11419 for commercial real estate brokerage and consulting services. The execution of new agreement No. 11419 superseded and replaced the agreement No.10713 and the subsequent modification to that agreement. The balance of unused funds authorized under agreement No. 10713 ($467,214) were included in agreement No. 11419. For the purposes of this First Modification, agreement No. 11419 shall be referred to herein as the “Original Agreement.”
D. On or about December 26, 2023, the City entered into a lease extension with its tenant at the Airport, Snap, Inc. Because CRG provided the City with real estate brokerage services for the City’s lease with Snap, Inc., and because the commission due to CRG would exceed the maximum compensation provided under the Original Agreement, the City and CRG seek to modify the Original Agreement allow for compensation to be paid to CRG for its work on the Snap lease. On December 19, 2023, the City Council authorized this First Modification to the Original Agreement to increase the compensation paid to CRG by $2,259,094, for a new total compensation amount of $3,423,897.
DocuSign Envelope ID: AE723961-BFD8-4644-BF01-8BE53E04696C 1/22/2024
2 TERMS AND CONDITIONS
Now, therefore, the undersigned parties do hereby mutually agree to modify the Original Agreement as follows:
1. Section 4 of the Original Agreement entitled “Compensation” shall be deleted and replaced in its entirety with the following paragraph:
4. Compensation. The City shall compensate CRG for the Services performed by it and provided to City in accordance with the commission and consulting fee schedules set forth in Exhibit B-1. The total compensation paid to CRG under this Agreement shall at no time exceed $3,423,897.
2. Exhibit B of the Original Agreement, entitled “Budget”, shall be replaced and superseded by Exhibit B-1, a copy of which is attached to this First Modification and incorporated into the Original Agreement.
3. This First Modification may be executed in counterparts with the same effect as if both parties hereto had executed the same document. All counterparts shall be construed together and shall constitute a single agreement. Any signature to this First Modification transmitted electronically through DocuSign or PDF shall be deemed an original signature and be binding upon the parties hereto (it being agreed that such electronic signature shall have the same force and effect as an original signature).
Except as expressly modified by this First Modification, all other terms and conditions of the Original Agreement shall be and remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Modification as of the date and year first written above.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By:
______________________________
RICK COLE
City Manager
NDOR
By:
_______________________________
DocuSign Envelope ID: AE723961-BFD8-4644-BF01-8BE53E04696C City Attorney
DOUGLAS SLOAN
1/19/2024
Craig Zund
CZ
1/22/2024
City Manager
1/22/2024
David White
Nikima Newsome
1/25/2024
Interim City Clerk
3 Exhibit B-1
Budget
Compensation
This Agreement was awarded to Corporate Realty Group (“CRG”) for $2,997,680 for the Initial Term (years one through three) of the Agreement. The first Option Term of this Agreement (year four), if exercised by the City, shall be for $122,615. The second Option Term of this Agreement (year five), if exercised by the City, shall be for $303,602. All commissions paid to CRG under this Agreement shall be in accordance with the below Commission Fee Schedule and Hourly Rate Fee Schedule. The total compensation paid to CRG under this Agreement shall at no time exceed $3,423,897.
CRG Commission Fee Schedule
Reimbursements Percentage or Flat Fee With Tenant’s Representative Outside Broker
New Term Leases Years 1-5: 3% of aggregate lease
value
Years 6-10: 1.5% of aggregate
lease value
Years 1-5: An additional 3% of
aggregate lease value
Years 6-10: An additional 2% of
aggregate lease value
New Month-toMonth LeasesEqual to one month’s rent. An additional 6% or the value of 1 month’s rent, whichever is
greater.
Term Lease RenewalsYears 1-5: 2% of aggregate lease
value Years 6-10: 1% of aggregate lease value
Years 1-5: Additional 2%-4%
Years 6-10: Additional 1%-2%
Term Lease ExpansionsYears 1-5: 2% of aggregate lease
value
Years 6-10: 1% of aggregate
lease value
Years 1-5: An additional 2%-4%
of aggregate lease value.
Years 6-10: An additional 1%-2%
of aggregate lease value.
Consulting Service Fees
CRG shall provide to City five (5) hours of consulting services at no cost for projects that require no outside expertise. CRG shall provide the City with a proposal and scope of services for consulting projects that exceed five hours. CRG consulting fees shall be based on the following schedule:
DocuSign Envelope ID: AE723961-BFD8-4644-BF01-8BE53E04696C 4 CRG Hourly Consulting Fee Schedule
Personnel Hourly Rates Percentage of Scope of
Work
Craig Zund/Principal $225.00 Per Hour 90%
Associates $150.00 Per Hour 10%
Project Manager $125.00 Per Hour On Demand
DocuSign Envelope ID: AE723961-BFD8-4644-BF01-8BE53E04696C