sr-090809-1h~~r
~;~YOf City Council Report
Santa Monica
City Council Meeting: September 8, 2009
Agenda Item:
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Real Estate Advisory Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an amendment to agreement No. 1378 with Allan D. Kotin & Associates for real
estate economic and financial advisory services related to the City's property acquisition
and leasing activities, in an amount not-to-exceed $50,000, for a new total of $120,000.
Executive Summary
In 2006, staff invited firms to respond to a Request for Qualifications (RFQ) for
economic consulting services related to the City's .property acquisition and leasing
activities. The firm of AIIan D. Kotin & Associates ("the consultant") was chosen from
the three respondents because the firm and its principal, Allan D. Kotin, had the
requisite qualifications and experience. The City entered into a professional services
agreement in the amount of $50,000. Amendment No. 1 to the Agreement, which was
executed in June 2008, increased the total contract .amount to $70,000. The consultant
has provided valuable advice to the City on structuring and analyzing various real estate
transactions. Staff recommends that the contract be increased by $50,000, for a total
not to exceed $120,000.
Discussion
In 2006, City staff sought an economic and financial consultant team that could advise
on complex real estate transactions involving property leasing and property acquisition.
The real estate economics consulting firm of AIIan D. Kotin & Associates was chosen
from the RFQ process because of its extensive experience with providing economic and
financial solutions to both the public and private sectors.
Staff executed a professional services. agreement contract with Allan D. Kotin &
Associates on October 23, 2006 in the amount of $50,000. An amendment was
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executed on June 17, 2008, increasing the total to $70,000. City projects for which the
firm has provided financial feasibility and advisory services include the property
acquisitions associated with the Downtown Parking Strategy. The firm also participated
in the review of an RFP and proposals for the development of a mixed-use cinema
project on the 30,000-square foot parcel of Parking Structure No. 3 located at 1320 4~"
Street.
An amendment to the existing contract is proposed to allow the firm to continue its
economic advisory and financial feasibility services to the City. The consultant's
services are needed for upcoming real estate transactions and public projects
Contractor/Consultant Selection
The firm, Allan D. Kotin & Associates, was chosen through an RFQ process in 2006.
The firm was selected based on extensive experience consulting for both the public and
private sectors and the strength of the proposed team. The firm's advice and analysis
have been thorough, precise and thoughtful, and the firm has offered valuable insights
in support of the City's needs.
Financial Impacts & Budget Actions
The proposed amendment will increase the existing agreement by $50,000, to a new,
not-to-exceed amount of $120,000. Funds for the contract amendment are available in
account no. 01268.555060.
Prepared by:
Erika Cavicante, Senior Development Analyst
Andy Agle, C
Housing and
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Approved: Forwarded to Council:
Reference Contract No.
9113 (CCS).