SR 10-25-2022 5K
City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 5.K
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of Fifth Modification to Allan D. Kotin & Associates Professional
Services Agreement for Real Estate Advisory Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a fifth modification to Professional Services Agreement (PSA) #9543 (CCS)
with Allan D. Kotin & Associates for continuation of real estate advisory services related
to the Santa Monica Pier and other City projects. This modification will extend the term
by one year. This will result in a 12-year amended agreement with no increase to the
current authorized amount of $340,000, with future year funding contingent on Council
budget approval.
Summary
The City has an extensive real estate portfolio with prominent assets such as the Santa
Monica Pier, Civic Auditorium and Bergamot Station Arts Center, as well as other
commercial properties at the beach and in the downtown area. As a best practice, the
City retains advisory services specializing in economic and real estate analysis to inform
and assist the City with valuations and negotiations. Allan D. Kotin & Associates is a
consultant used by the City for such services. The City uses the firm’s consulting
services to evaluate the feasibility and business terms associated with leases and
licenses of several City-owned properties such as Pacific Park, the Civic Auditorium,
beach concessions and other public-private partnerships. To ensure continuity, staff
recommends modifying the existing professional services agreement with Allan D. Kotin
& Associates (Kotin & Associates), who are supporting the City in current negotiations.
In some instances, requiring outside consultant services, the City has been able to be
reimbursed for its consultant fees. Recently, the City has been in lease negotiations with
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the operators of Pacific Park and is being reimbursed for Kotin & Associates’ consultant
fees through the reimbursement agreement with SM Park Holdings, LLC d/b/a Pacific
Park.
Discussion
For complex projects, the City, through its Economic Development Division, engages
highly specialized real estate advisory services. One of the consultants that the City
currently contracts with, Kotin & Associates, was selected following a Request for
Qualifications (RFQ) process in 2011 and Council approved on January 24, 2012
(Attachment A). Due to the complexity and duration of significant real estate
transactions which can take many years to evaluate and negotiate, Kotin & Associates’
contract has been modified to extend the original term and increase the original budget
as summarized in the Past Council Actions table below. Lease negotiations between the
Santa Monica Pier tenant, Pacific Park, and the City have been ongoing; the complex
lease negotiations have been conducted with the support of Kotin & Associates. To
ensure continuity, staff recommends extending the term by one-year. The costs
associated with the Pacific Park lease negotiations are being reimbursed through a cost
reimbursement agreement with the subtenant operators of Pacific Park, the amusement
park on the Santa Monica Pier. The Economic Development Division is in the process
of finalizing a RFQ and expects to have a list of qualified consultants within Fiscal Year
2022-23.
Vendor/Consultant Selection
The services of Kotin & Associates were procured through a RFQ process in 2011. This
firm was selected based on its qualifications and extensive financial and development
advisory experience consulting for public agencies throughout the state. The City will
be issuing a new RFQ for professional services in Fiscal Year 2022-23 to help identify
additional professional service providers to assist the City with real estate needs.
However, due to potential ongoing requirements associated with Pacific Park, staff
wanted to ensure Kotin was still under contract to provide continuity with this project.
Due to the COVID-19 pandemic, the shutdown of the Pier, and staff workload, the
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negotiations with Pacific Park and the solicitation for additional consultants were
delayed.
Past Council Actions
Meeting Date Description
01/24/12 (attachment A) Original award of PSA # 9543 (CCS) authorizing Allan D. Kotin &
Associates to provide real estate economic and financial advisory
services in an amount not to exceed $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, Council authorized a second
modification to the extend the term through December 31, 2019
and increase the contract by $130,000 for a total amount not-to-
exceed $200,000.
06/27/17 (attachment B) Council authorized a third modification to increase contract
authority by $100,000 for a total amount not to exceed $300,000
11/12/19 (attachment C) Council authorized a fourth modification to increase contract
authority by $40,000 for a total amount not to exceed $340,000
and to extend the term by three one-year options.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action. Staff will return to Council if specific budget actions are required
in the future. Funding for the agreement has been budgeted for the 2022-23 fiscal year
and the City is reimbursed for the consultant costs associated with the Pacific Park
lease negotiations by SM Park Holdings, LLC. The remaining contract authority is
$60,330 and is sufficient to complete the project.
Prepared By: Erika Cavicante, Senior Development Analyst
Approved
Forwarded to Council
Attachments:
A. 2012. 01.24 Kotin Council Report
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B. 2017. 06.27 Kotin Council Report
C. 2019. 11-12 Kotin Council Report
D. Kotin OAKS INITIATIVE 2021-2022
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City 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 recommends 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 and 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 contingent 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 & Associates 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 Department’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 development
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 consulting teams that could advise staff on complex real estate transactions
such as redevelopment of the Fourth Street 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 total amount not to exceed $200,000.
Discussion
Allan D. Kotin & Associates has provided real estate 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 professional 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 other 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. 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 contract modification to be awarded to Allan D. Kotin & Associates is $100,000, for
an amended contract total not to exceed $300,000. Funds 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 budget 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.
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City Council Report
City Council Meeting: November 12, 2019
Agenda Item: 3.H
1 of 5
To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development, Economic
Development Division
Subject: Modifications to Professional Services Agreements for Real Estate and
Economic Advisory Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute:
1. A third modification to Professional Services Agreement # 9539 (CCS) with
Keyser Marston Associates to increase the compensation by $200,000 and to
extend the term by five additional one-year options for services related to the
Fourth Street and Arizona project, Bergamot Station Arts Center project, and
affordable housing projects. The proposed modification would result in a 14-year
amended agreement with a new total not to exceed $480,000, with future-year
funding contingent on Council budget approval; and,
2. A fourth modification to Professional Services Agreement # 9543 (CCS) with
Allan D. Kotin & Associates to increase compensation by $40,000 and to extend
the term by three additional one-year options for services related to the Santa
Monica Pier, Beach, and Civic Auditorium. The proposed modification would
result in an 11-year amended agreement with a new total not to exceed
$340,000, with future-year funding contingent on Council budget approval; and,
3. A reimbursement agreement with SM Park Holdings, LLC, doing business as
Pacific Park, or designee, related to the City’s expenses in evaluating proposed
changes to the subtenant’s interest on the Pier.
Summary
The City has an extensive real estate portfolio with prominent assets such as the Santa
Monica Pier, Civic Auditorium, and Bergamot Station Arts Center, as well as other
commercial properties at the beach and downtown. As a best practice, the City retains
advisory services specializing in economic and real estate analysis to inform and assist
the City with valuations and negotiations. Keyser Marston Associates, Inc. is currently
assisting the City with analysis and negotiations of the business terms associated with
the proposed public/private partnerships at Fourth Street and Arizona and Bergamot
Station Arts Center, as well as numerous affordable housing projects. Allan D. Kotin &
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Associates is currently evaluating the feasibility and business terms associated with
leases and licenses of several City-owned properties including the Civic Auditorium,
beach concessions, and Pacific Park. In order to support continuity for existing
negotiations, staff recommends modifying the existing professional service agreements
with Keyser Marston Associates, Inc. and Allan D. Kotin & Associates. In cases
requiring outside consultant services, the City seeks reimbursement for its
consultant fees. As the operators of Pacific Park have recently proposed potential
modifications to their existing lease, staff seeks authorization to enter into a
reimbursement agreement with SM Park Holdings, LLC, d/b/a Pacific Park
Discussion
For complex development projects, the City, through its Housing and Economic
Development Department, engages highly specialized real estate advisory services.
The City currently contracts with two consultants to perform such services, Keyser
Marston Associates, Inc. (KMA) and Allan D. Kotin & Associates (Kotin & Associates).
Both consultants were selected following a Request for Qualifications (RFQ) process
in 2011 and Council approval on January 24, 2012 (Attachment A). Due to the
complexity and duration of significant real estate transactions that can take many years
to evaluate and negotiate, the consultant contracts have been modified to extend the
original term and increase the original budget as summarized in the Past Council
Actions table below. As negotiations on several complex public/private partnership
development projects are ongoing (Fourth Street and Arizona project, Bergamot Station
Arts Center, the Civic Auditorium) and the Santa Monica Pier tenant operating Pacific
Park has requested to modify their lease agreement, further modifications of the
consultant agreements are recommended.
KMA currently provides real estate financial analysis and economic development
consulting services for the Fourth Street and Arizona and Bergamot Station Arts Center
projects, including assisting the City with negotiating business terms associated with
proposed disposition and development agreements and long-term ground leases for the
projects, as well as conducting economic modeling of alternative development
scenarios and assisting in analyzing affordable housing projects. The fees charged by
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KMA are reimbursed by the respective development proponents through two separate
cost-recovery agreements. To ensure that the economic analysis and negotiations are
completed for the two projects, staff recommends modifying PSA # 9539 (CCS) with
KMA to increase the compensation by $200,000 and to include five additional one-year
options to extend the term, resulting in a total contract amount of $480,000 and a
fourteen-year term.
Kotin & Associates is currently working on a variety of complex real estate transactions
providing financial analysis and economic considerations for beach concessions, reuse
of the Civic Auditorium, and lease negotiations for Pacific Park. To ensure consistency
in the financial analysis and negotiations, staff recommends modifying PSA # 9543
(CCS) with Kotin & Associates to increase the compensation by $40,000 and to include
three additional one-year options to extend the term, resulting in a total contract amount
of $340,000 and an eleven-year term. The costs associated with the Pacific Park lease
negotiations are proposed to be reimbursed through a cost reimbursement agreement
with the subtenant operators of Pacific Park, the amusement park on Santa Monica
Pier.
Vendor/Consultant Selection
The services of KMA and Kotin & Associates were procured through an RFQ process
in 2011. Both firms were selected based on their qualifications and extensive financial
and development advisory experience consulting for public agencies throughout the
state.
Past Council Actions
Meeting Date Description
January 24, 2012
(Attachment A)
KMA. Original award of PSA # 9539 (CCS) authorizing KMA to
provide professional real estate and economic development
consultant services in an amount not to exceed $80,000. A first
modification was executed on June 25, 2014 that extended the
term through June 30, 2015.
Kotin. Original award of PSA # 9543 (CCS) authorizing Allan D.
Kotin and Associates to provide real estate economic and
financial advisory services in amount not to exceed $70,000. A
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first modification was executed on June 26, 2014 to extend the
term to June 30, 2016. At its June 23, 2015 meeting, Council
authorized a second modification to the PSA 9543 to extend the
term through December 31, 2019 and increase contract by
$130,000 for a total amount not-to-exceed $200,000.
May 12, 2015
(Attachment B)
KMA. Council authorized a second modification to KMA’s PSA #
9539 (CCS) to extend the term to June 30, 2018, with three, one-
year options to extend and increase its contract authority by
$200,000 for a total amount not to exceed $280,000.
June 27, 2017
(Attachment C)
Kotin. Council authorized a third modification to Kotin &
Associates PSA to increase of contract authority by $100,000 for
a total amount not to exceed $300,000.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the General Fund to increase the amount
of the agreements with Keyser Marston Associates, Inc. and Allan D. Kotin &
Associates to continue to provide real estate consulting services. The City will be
reimbursed for consultant costs by the development teams for the Fourth Street and
Arizona and Bergamot Station Arts Center projects, and from SM Park Holdings, LLC
for Pacific Park lease negotiations.
Agreement Modification Request
Agreement #
Current
Authorized
Amount
FY 2019-20
Request
Future Year
Requests Account Number
Total Revised
Contract
Amount
9543 (CCS) $ 300,000 $ 20,000 $ 20,000 01160004.552010 $ 340,000
9539 (CCS) $ 280,000 $ 20,000 $ 130,000 01160004.552010 $ 430,000
$ 0 $ 50,000 $ 0 01160002.552010 $ 50,000
Total $ 480,000
Future-year funding is contingent on Council budget approval.
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Prepared By: Ramandeep Kaur, Management Fellow
Approved
Forwarded to Council
Attachments:
A. Attachment A - Council Report January 24, 2012
B. Attachment B - Council Report May 12, 2015
C. Attachment C - Council Report June 27, 2017
D. Attachment D - Oaks Initiative Form Kayser Marston Associates Inc.
E. Attachment E - Oaks Initiative Form Allan D. Kotin & Associates
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CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Allan D. Kotin & Associates
Name(s) of trustees, directors, partners, and officers:
Allan D. Kotin
Name(s) of persons with more than a 10% equity, participation, or revenue
interest: Allan D. Kotin
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
Jenn Miller Business Manager
12/1/2021
jmiller@spscpa.com (310) 873-5248
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