SR 09-23-2014 3ECity of City Council Report
Santa 3101lien,
City Council Meeting: September 23, 2014
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To: Mayor and City Council
From: Karen Ginsberg, Community and Cultural Services Director
Subject: Agreement with HR &A Advisors, Inc. to Provide Consulting Services in
Conjunction with the Civic Auditorium Planning Process and the Civic
Working Group
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a first modification to
Professional Services Agreement No. 2859 (CGS) with HR &A Advisors, Inc.
(HR &A), a New York based company, in the amount of $377,665 to provide
consulting services in conjunction with the planning efforts of the Civic Working
Group and will include a full team of specialized sub - consultants. This will result
in a two year amended agreement with a total amount not to exceed $452,695.
2. Authorize the budget changes as outlined in the Financial Impacts and Budget
Actions section of this report.
Executive Summary
In April 2014 HR &A was selected as the lead consultant for the Civic Auditorium
planning process through a competitive process. The City and HR &A entered into a
Professional Services Agreement in the amount of $75,030 for completion of the first
phase of these planning services through the first community workshop in September,
2014.
Staff recommends extending the agreement with HR &A through July 30, 2015 and
modifying the scope to allow HR &A to work with the City throughout the planning
process including bringing in a full team of specialized sub - consultants to support the
Civic Working Group process. This first modification would increase the contract amount
by $377,665 resulting in a total agreement amount not to exceed $452,695.
Background
On Jury 11, 2013 Council reviewed and commented on recommendations regarding an
interim use of the Civic Auditorium, long -term management options, strategies to
generate revenue for the renovation, and the concept of the development of a cultural
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campus with the Civic Auditorium as the hub. Staff was directed to return with a
recommended structure and criteria for a temporary Civic Working Group (CWG) to
provide input on the development of recommendations for the renovation, programming
and long -term operation of the Civic. Council also approved an interim operations
budget and the allocation of funds to implement a community planning process
including associated market feasibility and economic analyses of the preferred uses.
At its meeting on August 13 2,013 Council approved the establishment of a nine
member Civic Auditorium Working Group (CWG) composed as follows: four members
would be individuals who currently serve, or have served, on the City's Arts, Landmarks,
Planning, and Recreation and Parks Commissions; the other five members would be
people with broad knowledge of Santa Monica and who possess professional expertise
in one or more of a variety of relevant disciplines.
On October 22,_201,,, Council appointed nine members to the CWG to one two -year
term and tasked them with facilitating community dialogue and developing
recommendations regarding the future of the Civic Auditorium as the hub of a mixed-
use cultural district.
In June 2014, the City and HR &A entered into a Professional Services Agreement in the
amount of $75,030 for completion of the first phase of planning services, through
October 31 2014, including the development and production of the first community
workshop in September, 2014. The scope of services for Phase I also included review
of documents related to the planning history of the Civic Auditorium; preparation of a
detailed Project Management Plan for the entire planning process; development of
strategies for the three CWG public workshops; a project schedule, management and
communication structure and protocols; as well meeting preparation and participation in
all CWG regular meetings.
Discussion
In March 2014, the CWG adopted quarterly goals for the planning process and decided
to structure the process around three community workshops. The first workshop will
take place on September 27, 2014, from 8:30 am to 1:30 pm at the Civic and will focus
on the Civic facility, the site and working assumptions for the planning process. The
second workshop will unfold in two parts early in 2015 -- on January 31st and February
1st. Workshop participants will explore alternative uses for the Civic and, using an
interactive budgeting tool, they will develop a budget for the uses along with funding
sources. This process will address priorities and corresponding tradeoffs. The third
community workshop is planned for March 21, 2015 and will focus on developing a set
of recommendations to inform the Working Group and the City Council.
The proposed first contract modification would cover the second phase of the work that
HR &A has been performing in conjunction with the Civic community planning process.
The initial phase will conclude with the completion of the September workshop, The
proposed modification would commence in October and include a full team of
specialized sub - consultants. The proposed scope of work would include:
® Preparing technical analyses of land uses, site planning, operating models,
capital and operating costs and financing options -- the focus of the CWG's
second and third community workshops;
® Overseeing the work and final deliverables of all HR &A subcontractors;
® Refining the objectives, programs, and logistics for these workshops in
collaboration with City staff and the CWG; and
® Working with the CWG to formulate specific recommendations to pursue detailed
planning, financing, and implementation of a mixed -use cultural district, including
preferred uses for the Civic Auditorium and the adjacent parking, for presentation
to the City Council by June 2015.
This scope of work would increase the contract amount by $377,665 bringing the total
contract amount to $452,695.
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Contractor /Consultant Selection
On December 12, 2013 the City issued a Request for Qualifications (RFQ) for Planning
for the Future of the Santa Monica Civic Auditorium in the areas of cultural planning,
urban planning, real estate, economic analysis and public /private finance. The RFQ
was posted on the City's on -line bidding site in accordance with City Charter and
Municipal Code provisions. 875 vendors were notified, 122 vendors downloaded the
RFQ. 33 firms responded. The responses were reviewed by a selection panel of staff
from Community and Cultural Services, Finance, Housing and Economic Development,
Planning and Community Development, and Public Works. Evaluation was based on
the following selection criteria, Experience: Relevant and significant experience and
expertise in the fields specified; Expertise: Depth and breadth of expertise in the areas
of anticipated planning assignments and References. Based on the evaluation process
a short list of pre - qualified firms was developed.
Staff recommended HR &A as the best qualified firm to serve as the lead consultant for
the Civic Auditorium planning process. HR &A has over three decades of experience
working collaboratively with government agencies, private developers, urban designers,
engineers and other specialists. The firm provides strategic advisory services for some
of the most complex mixed -use projects across North America and abroad. In addition,
they have extensive experience with planning for successful and innovative cultural
districts, from a comprehensive neighborhood restoration and redevelopment strategy
for the Menil museum in Houston, TX, to the Church Street cultural district in
Greensboro, N.C., or the district around the Brooklyn Academy of Music in New York
City. HR &A also has experience working on planning and development issues in Santa
Monica and as such is familiar with the history and context for the Civic Auditorium.
HR &A's scope of services for Phase I included review of documents related to the
planning history of the Civic Auditorium; preparation of a detailed Project Management
Plan for the entire planning process; development of strategies for the three CWG
public workshops; a project schedule, management and communication structure and
protocols; as well meeting preparation and participation in all CWG regular meetings.
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As part of the same RFQ process staff pre - qualified additional firms with diverse
expertise in the areas of cultural planning, land use /urban planning, real estate
feasibility and analysis, economic analysis, and public /private financing that will be sub -
consultants. The RFQ covered the entire project, however, due to the timeline of the
Civic planning process the City entered into a preliminary contract with HR &A Advisors
for an initial phase of the work while a negotiated scope for the entire project was being
finalized, including that of the necessary sub - consultants.
The professional services agreement modification to be awarded to HR &A is $377,665
for an amended agreement total not to exceed $452,695. The contract will be charged
to account 015601.555060. Award of the agreement requires the following budget
actions:
1) Release of fund balance from reserve account 1.380231 (Civic Auditorium) of
$377,665; and
2) Appropriation of $377,665 to account 015601.555060 (Civic Auditorium —
Professional Services).
Prepared by: Jessica Cusick, Cultural Affairs Manager
Approved:
CA
Karen Ginsberg, Dijoctor ; Rod Gould
Community and Cu ft,�`ural Services `, City Manager
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Reference:
Contract No. 9971
(CCS)