SR 06-27-2017 3F
Ci ty 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 r ecommends 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 a nd 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 contin gent 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 & Associ ates 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 Depar tment’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 develop ment
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 consult ing team s that could adv ise staff on complex real estate transactions
such as redevelopment of the Fourth S treet at Arizona Avenue site, revitalization of
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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 tota l amount not to exceed $200,000.
Discussion
Allan D. Kotin & Associates has provided real estat e 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 pro fessional 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 oth er 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. Ko tin & 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 as sisting 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 contract modification to be awarded to Allan D. Kotin & Associates is $100,000, for
a n amended contract total not to exceed $300,000. Fu nds 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 bu dget 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.
City Council Report
City Council Regular Meeting: June 23, 2015
Agenda Item: 3-G
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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
Request for 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