SR-06-23-2015-3G - 200-007/410-001-06City Council Regular Meeting: June 23, 2015
Agenda Item: 3—G
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Professional Services Agreement Modification
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a second modification to
Professional Services Agreement No. 9543 with Allan D. Kotin & Associates, a
California -based company, in an amount not to exceed $130,000, on the same
general terms and conditions through December 31, 2019, for economic
consulting and financial analysis for the Fourth Street cinema project.
2. Authorize budget changes as outlined in the Financial Impacts & Budget Actions
section in this report.
Executive Summary
This report recommends an extension of the contract with Allan D. Kotin & Associates to
continue providing economic consulting services to support the city's Fourth Street
cinema project. The contract modification would extend the term of the contract until
December 31, 2019 in an amount not to exceed $130,000 for a total amount not to
exceed $200,000. Services related to the proposed cinema project would come from a
cost recovery deposit funded by the cinema developer.
Background
In 2011, City staff sought an economic and financial consultant team that could advise
staff on complex real estate transactions involving property leasing, property acquisition,
and the formulation of public /private development partnerships. The real estate
economics consulting firm of Allan D. Kotin & Associates was chosen from a
Requestfor Qualifications (RFQ) process because of its extensive experience with
providing economic and financial solutions to both the public and private sectors.
Allan D. Kotin & Associates has provided real estate financial analysis and economic
development advice to the City on a variety of transactions, including the previous effort
to implement the Fourth Street cinema project.
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Discussion
Staff executed professional services agreement no. 9543 on January 25, 2012 in the
amount of $70,000. A first modification was executed on June 26, 2014 to extend the
term to June 30, 2016. A second modification to the existing professional services
agreement no. 9543 is proposed to allow the firm to continue its economic and financial
advisory services to the City. The consultant team includes a new sub - consultant,
IJM Enterprises. IJM Enterprises is a cinema - industry consulting firm that has provided
consulting services to the City since 2004. The two firms will continue collaborating and
providing consulting services to the City associated with the negotiations for the
development of the Fourth Street cinema project in downtown.
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.
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Financial Impacts and Budget Actions
The agreement modification to be awarded to Allan D. Kotin & Associates is $130,000,
for an amended agreement total not to exceed $200,000. Funds in the amount
of $30,000 are available in the FY 2015 -17 Proposed Biennial Budget at
account 012681.555060. The remaining agreement modification costs, which will be
supported by a cost recovery deposit from the proposed developer of the cinema
project, will require the following budget changes:
1. For FY 2014 -15, increase revenue budget at account 01263.407771 in the
amount of $150,000.
2. For FY 2015 -16, appropriate $100,000 to expenditure account 012681.555060.
Future -year funding is contingent on Council budget approval.
Prepared By: Erika Cavicante, Senior Development Analyst
Approved Forwarded to Council
Andy Agle, Director Qf Nousing a8dl l£k2a1tY,5
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Elaine M Polachek, In terim City hSfiiQ 5 @r5
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Reference:
Amended Contract No. 9543
(CCS)