HomeMy WebLinkAboutKEYSER MARSTON & ASSOC. - 2001-03-05re
, „� CITY OF HLJNTINGTON BEACH
Lra 2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
DATE: March 12, 2001
TO: Keyser Marston Associates, Inc. ATTENTION: James A-. Rabe
Name
500 South Grand Ave., Suite 1480 DEPARTMENT:
Street
Los Angeles, CA 90071 REGARDING: Professional Services
City, State, zip Contract - Economic Advisor Services
See Attached Action Agenda Item E-9 Date of Approval 03-05-01
Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item.
Remarks:
Connie Brockway
City Clerk
Attachments: Action Agenda Page
CC: D. Biggs
Name
C. Runzel
Name
Name
Name
C. Mendoza
x Agreement x
RCA
Econ. Dev. x
Department RCA
Econ. Dev. x
Department
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Risk Management Dept
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RCA
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Bonds —
Deed
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Agreement
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Agreement
Agreement
Agreement
Insurance x
Other
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Insurance Other
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Insurance Other
Insurance Other
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Insurance
(Telephone: 714-536.5227 )
Council/Agency Meeting Held:
Deferred/Continued to:
J
Ap roved ❑ Conditionally Approved ❑ Denied
Clerk' ignature
ouncil Meeting Date: March 5, 2001
Department ID Num er: ED-e'-08=`
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL/AGENCY ACTION
SUBMITTED TO: HONORABLE MAYOR/AGENCY CHAIRMAN AND CITY COyNCIL
MEMBERS/REDEVELOPMENT AGENCY MEMBERS
SUBMITTED BY: RAY SILVER, City Administrator/Executive Director& "')
PREPARED BY: DAVID C. BIGGS, Economic Development Director
SUBJECT: Approve Economic Consultant Agreements with Keyser Marston
and Associates, the Sedway Group, and the Rosenow, Spevacek
Group
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: The Department of Economic Development is requesting approval of
three professional services contracts for economic advisory services.
Funding Source: The $225,000 is budgeted in Economic Development Department,
Administrative Economic Analysis Account 30580101.69325.
City Council Recommended Action:
1. Approve and authorize the Mayor and the City Clerk to execute the contract between
the City of Huntington Beach and Keyser Marston and Associates (Attachment 1) for an
amount not to exceed $75,000 per year.
Redevelopment Agency Recommended Action:
1. Approve and authorize the Chairman and the Agency Clerk to execute each of the two
attached contracts between the Redevelopment Agency and the following firms: the Sedway
Group (Attachment 2), and the Rosenow, Spevacek Group (Attachment 3) for an amount not
to exceed $75,000 per year.
Alternative Action(s):
1. Do not appove one or more of these contracts.
Analysis:
In October 2000, the Department of Economic Development solicited requests for
qualifications and proposals from eight professional economic firms to provide a full
spectrum of professional services including real estate, redevelopment, and economic
V
REQUEST FOR COUNCIL/AGENCY%TION
MEETING DATE: March 5, 2001
DEPARTMENT ID NUMBER: ED-01-08
development work. Economic advisory services are chiefly required for major commercial
and housing projects but are also needed from time to time depending on the Agency's need
to investigate a particular financial issue. Three firms were selected to providing
consultations in their various areas of expertise: Keyser Marston and Associates, the Sedway
Group, and the Rosenow, Spevacek Group. On January 9, 2001, the Economic
Development Committee was briefed on the selection and need for these consultants. Each
contract is for three years of service for an amount not to exceed $75,000 per year.
Appropriations for these professional services are approved through the annual budgetary
process. Each consultant has met the City's insurance requirements.
Professional services economic analysis may include:
• Advice in the negotiation (or renegotiations) of DDA's
• Determination of the level of financial assistance that is warranted for commercial and
residential projects
• Advice on the structure and financing techniques of Agency and developer obligations
Review and verification of developer pro-formas
• Determination of the reuse value of project sites and preparation of summary reports
pursuant to Sec. 33433 of the California Health and Safety Code
• Comparative analysis of proposed projects in relation to the regional and national
markets.
• Advice in the structure of development proposal solicitations and review of proposals
submitted
• Advice on the market trends, product type and pricing of proposed market rate housing
and on the affordability of Agency subsidized housing for low and very -low income
households.
As these tasks require advanced economic expertise beyond current staffing levels, staff is
recommending the the Redevelopment Agency approve these contracts for professional
economic advisory services.
Environmental Status: Not applicable.
Attachment(s):
Professional Services Agreement between the City of Huntington
Beach and Keyser Marston and Associates
2 Professional Services Agreement between the Redevelopment
Agency and the Sedway Group
3 Professional Services Agreement between the Redevelopment
Agency and the Rosenow, S evacek Group
RCA Author: Runzel
ED0108 -2. 02126/01 11:19 AM
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Professional Services Agreement between the City of Huntington Beach
and Keyser Marston and Associates
ATTACHMENT #'l
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PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
KEYSER MARSTON ASSOCIATES, INC.
FOR
ECONOMIC ADVISOR SERVICES
Table of Contents
Scopeof Services..................................................................................................... I
DesignatedContacts.................................................................................................1-
Timeof Performance...............................................................................................2
Compensation..........................................................................................................2
ExtraWork...............................................................................................................2
Methodof Payment..................................................................................................2
Disposition of Plans, Estimates and Other Documents...........................................4
HoldHarmless................................................................................................:........4
Workers' Compensation Insurance............................................................................5
General Liability Insurance......................................................................................6
Professional Liability Insurance..............................................................................6
Certificates of Insurance..........................................................................................7
Independent Contractor............................................................................................8
Termination of Agreement.......................................................................................8
Assignment and Subcontracting...............................................................................9
Copyrights/Patents....................................................................................................9
City Employees and Officials....:................................................................:
Notices.....................................................................................................................9
Modification.............................................................................................................10
Captions...................................................................................................................10
SectionHeadings.....................................................................................................10
Interpretation of Agreement.....................................................................................10
DuplicateOriginal....................................................................................................I
I
Immigration..............................................................................................................
I I
Legal Services Subcontracting.................................................................................11
Attorney's Fees.........................................................................................................12
Entirety.....................................................................................................................12
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY OF HUNTINGTON BEACH AND
KEYSER MARSTON ASSOCIATES, INC.
FOR
ECONOMIC ADVISOR SERVICES
THIS Agreement is made and entered into this 5th day of March
200, , by and between the City of Huntington Beach, a municipal corporation of the State of
California, hereinafter referred to as "CITY," and KEYSER MARSTON ASSOCIATES, INC., a
California corporation, hereinafter referred to as "CONSULTANT."
WHEREAS, CITY desires to engage the services of a consultant to provide economic
advisor services; and
Pursuant to documentation on file in the office of the City Clerk, the provisions of
the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional
service contracts have been complied with; and
CONSULTANT has been selected to perform said services,
NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows:
1. SCOPE OF SERVICES
CONSULTANT shall provide all services as described in the Request for
Proposal ("RFP") and CONSULTANT's proposal dated October 23, 2000 (both of which are
hereinafter collectively referred to as Exhibit "A") which are attached hereto and incorporated
into this Agreement by this reference. These services shall sometimes hereinafter be referred to
as the "PROJECT."
2. DESIGNATED CONTACTS
CITY shall assign a staff coordinator to work directly with CONSULTANT in the
performance of this Agreement.
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3. TIME OF PERFORMANCE
Time is of the essence of this Agreement. The services of CONSULTANT are to
commence as soon as practicable after the execution of this Agreement and all tasks specified in
Section 1 shall be completed no later than three (3) years from the date of this Agreement. These
times may be extended with the written permission of CITY. The time for performance of the
tasks identified in Section 1 are generally to be shown in the Scope of Services on the Work
Program/Project Schedule. This schedule may be amended to benefit the PROJECT if mutually
agreed by CITY and CONSULTANT.
4. COMPENSATION
In consideration of the performance of the services described herein, CITY agrees
to pay CONSULTANT on a time and materials basis at the rates identified in Exhibit "A," a fee
not to -exceed Seventy-five Thousand -Dollars ($75,000.00).
5. EXTRA WORK
In the event CITY requires additional services not included in Section 1, or
changes in the scope of services described in Section 1, CONSULTANT will undertake such
work only after receiving written authorization from CITY. Additional compensation for such
extra work shall be allowed only if the prior written approval of CITY is obtained.
6. METHOD OF PAYMENT
A. CONSULTANT shall be entitled to progress payments toward the fixed
fee set forth herein in accordance with the progress and payment schedules set forth in Section 1.
B. Delivery of work product: A copy of every memorandum; letter, report,
calculation and other documentation prepared by CONSULTANT shall be submitted to CITY to
demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on
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any such product, CITY shall identify specific requirements for satisfactory completion. Any
such product which has not been formally accepted or rejected by CITY shall be deemed
accepted.
C. CONSULTANT shall submit to CITY an invoice for each progress
payment due. Such invoice shall:
1) Reference this Agreement;
2) Describe the services performed;
3) Show the total amount of the payment due;
4) Include a certification by a principal member of CONSULTANT's
firm that the work has been performed in accordance with the
provisions of this Agreement; and
5) For all payments include an estimate of the percentage of work
completed.
Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is
making satisfactory progress toward completion of tasks in accordance with this Agreement,
CITY shall promptly approve the invoice, in which event payment shall be made within thirty
(30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld.
If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the
reasons for non -approval within seven (7) calendar days of receipt of the invoice, and the
schedule of performance set forth in Section 1 shall be suspended until the parties agree that past
performance by CONSULTANT is in, or has been brought into compliance, or until this
Agreement is terminated as provided herein.
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D. Any billings for extra work or additional services authorized by CITY
shall be invoiced separately to CITY. Such invoice shall contain all of the information required
above, and in addition shall list the hours expended and hourly rate charged for such time. Such
invoices shall be approved by CITY if the work performed is in accordance with the extra work
or additional services requested, and if CITY is satisfied that the statement of hours worked and
costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute
between the parties concerning payment of such an invoice shall be treated as separate and apart
from the ongoing performance of the remainder of this Agreement.
7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS
CONSULTANT agrees that all materials prepared hereunder, including all
original drawings, designs, reports, both field and office notices, calculations, maps, memoranda,
letters and other documents, except proprietory computer models,shall:be turned over to' CITY
upon termination of this Agreement or upon PROJECT completion, whichever shall occur first.
In the event this Agreement is terminated, said materials may be used by CITY in the completion
of the PROJECT or as it otherwise sees fit. Title to said materials shall pass to. CITY upon
payment of fees determined to be earned by CONSULTANT to the point of termination or
completion of the PROJECT, whichever is applicable. CONSULTANT shall be entitled to
retain copies of all data prepared hereunder.
8. HOLD HARMLESS
CONSULTANT shall protect, defend, indemnify and save hold harmless CITY,
its officers, officials, employees, and agents from.and against any and all liability, loss, damage,
expenses, costs (including without limitation, costs and fees of litigation of every nature) arising
out of CONSULTANT's negligent or willful misconduct or its failure to comply with any of its
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obligations contained in this Agreement by CONSULTANT, its officers, agents or employees
except such loss or damage which was caused by the sole negligence or willful misconduct of
CITY. CITY shall be reimbursed by CONSULTANT for all costs and attorney's fees incurred by
CITY in enforcing this obligation.
9. WORKERS' COMPENSATION INSURANCE
Pursuant to California Labor Code Section 1861, CONSULTANT acknowledges
awareness of Section 3700 et seq. of said Code, which requires every employer to be insured
against liability for workers' compensation; CONSULTANT covenants that it will comply with
such provisions prior to commencing performance of the work hereunder; and shall indemnify,
defend and hold harmless CITY from and against all claims, demands, payments, suit, actions,
proceedings, and judgments of every nature and description, including attorney's fees and costs
presented, brought or recovered against the CITY, for or on account of any liability under any of
said acts which may be incurred by reason of any work to be performed by CONSULTANT
underthis Agreement.
CONSULTANT shall maintain workers' compensation insurance in an amount of
not less than One Hundred Thousand Dollars ($100,000) bodily injury by accident, each
occurrence, One Hundred Thousand Dollars ($100,000) bodily injury by disease, each employee,
Two Hundred Fifty Thousand Dollars ($250,000) bodily injury by disease, policy limit.
CONSULTANT shall require all subcontractors to provide such workers' .
compensation insurance for all of the subcontractors', employees. CONSULTANT shall furnish
to CITY a certificate of waiver of subrogation under the terms of the workers' compensation
insurance and CONSULTANT shall similarly require all subcontractors to waive subrogation.
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10. GENERAL LIABILITY INSURANCE
In addition to the workers' compensation insurance and CONSULTANT's
covenant to indemnify CITY, CONSULTANT shall obtain and furnish to CITY, a policy of
general public liability insurance, including motor vehicle coverage covering the PROJECT.
The policy shall indemnify CONSULTANT, its officers, agents and employees, while acting
within the scope of their duties, against any and all claims arising out of or in connection with
the PROJECT, and shall provide coverage in nor less than the following amount: combined
single limit bodily injury and property damage, including products/completed operations liability
and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a
form, that includes a designated general aggregate limit, the aggregate limit must be no- less than
.$1,000,000 for .this PROJECT. The policy shall name CITY, its agents, its officers, employees
and volunteers as Additional Insureds, and shall specifically provide that any other insurance
coverage which may be applicable to the PROJECT shall be deemed excess coverage and that
CONSULTANT's insurance shall be primary.
Under no circumstances shall the above -mentioned insurance contain.a self -
insured retention, or a "deductible" or any other similar form of limitation on the required
coverage.
11. PROFESSIONAL LIABILITY INSURANCE
CONSULTANT shall furnish a professional liability insurance policy covering
the work performed by it hereunder. Said policy shall provide coverage for CONSULTANT's
professional liability in an amount not less than $1,000,000. per occurrence and in the aggregate.
A claims -made policy shall be acceptable if the policy further provides that:
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A. The policy retroactive date coincides with or precedes the initiation of the
scope of work (including subsequent policies purchased as renewals or
replacements).
B. CONSULTANT will make every effort to maintain similar insurance
during the required extended period of coverage following project
completion, including the requirement of adding all additional insureds.
C. If insurance is terminated for any reason, CONSULTANT agrees to
purchase an extended reporting provision of at least two (2) years to report
claims arising from work performed in connection with this Agreement.
D. The reporting of circumstances or incidents that might give rise to future
claims.
12. CERTIFICATES OF INSURANCE `
Prior to commencing performance of the work hereunder, CONSULTANT shall
furnish to CITY certificates of insurance subject to approval of the City Attorney evidencing the
foregoing insurance coverages as required by this Agreement; the certificates shall:
A. provide the name and policy number of each carrier and policy;
B. state that the policy is currently in force; and
C. promise that such policies shall not be suspended, voided or canceled by
either party, reduced in coverage or, in limits except after thirty (30) days'
prior written notice; however, ten (10) days' prior written notice in the
event of cancellation for nonpayment of premium.
CONSULTANT shall maintain the foregoing insurance coverages in force until
the work under this Agreement is fully completed and accepted by CITY.
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The requirement for carrying the foregoing insurance coverages shall not derogate
from the provisions .for indemnification of CITY by CONSULTANT under the Agreement.
CITY or its representative shall at all times have the right to demand the original or a copy of all
said policies of insurance. CONSULTANT shall pay, in a prompt and timely manner, the
premiums on all insurance hereinabove required.
13. INDEPENDENT CONTRACTOR
CONSULTANT is, and shall be, acting at all times in the performance of this
Agreement as an independent contractor herein and not as an employee of the CITY.
CONSULTANT shall secure at its expense, and be responsible for any and all payment of all
taxes, social security, state disability insurance compensation, unemployment compensation and
other payroll deductions for CONSULTANT and its officers, agents and employees and all
business licenses, if any, in connection with the services to be performed hereunder.
14. TERMINATION OF AGREEMENT
All work required hereunder shall be performed in a good and workmanlike
manner. CITY may terminate CONSULTANT's services hereunder at any time with or without
cause, and whether or not PROJECT is fully complete. Any termination of this Agreement by
CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as
provided herein. In the event of termination, all finished and unfinished documents, exhibits,
report, and evidence shall, at the option of the CITY, become its property and shall be delivered
to it by CONSULTANT.
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15. ASSIGNMENT AND SUBCONTRACTING
This Agreement is a personal service contract and the supervisory work hereunder
shall not be delegated by CONSULTANT to any other person or entity without the express
written consent of CITY.
16. COPYRIGHTS/PATENTS
CITY shall own all rights to any patent or copyright on any work, item or material
produced as a result of this Agreement.
17. CITY EMPLOYEES AND OFFICIALS
CONSULTANT shall employ no CITY official nor any regular CITY employee
in the work performed pursuant to this Agreement. No officer or employee of CITY shall have
any financial interest in this Agreement in violation of the applicable provisions of the California
Government Code.
18. NOTICES
Any notice or special instructions required to be given in writing under this
Agreement shall be given either by personal delivery to CONSULTANT's agent (as designated
in Section 1 hereinabove) or to CITY's Director of Economic Development as the situation shall
warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same
in the United States Postal Service, addressed as follows:
TO CITY:
Director of Economic Development
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
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TO CONSULTANT:
Mr. James A. Rabe
Keyser Marston Associates, Inc.
500 South Grand Ave., Suite 1480
Los Angeles, CA 90071
19. MODIFICATION
No waiver or modification of any language in this Agreement shall be valid
unless in writing and duly executed by both parties.
20. CAPTIONS
Captions of the sections of this Agreement are for convenience and reference
only, and the words contained therein shall in no way be held to explain, modify, amplify or aid
in the interpretation, construction or meaning of the provisions of this Agreement
21. SECTION HEADINGS.
The titles, captions, section, paragraph, subject headings and descriptive phrases
at the beginning of the various sections in this Agreement are merely descriptive and are
included solely for -convenience of reference only and are not representative of maters included
or excluded from such provisions, and do not interpret, define, limit.or describe, or construe the
intent of the parties or affect the construction or interpretation of any provision of this
.Agreement.
22. INTERPRETATION OF THIS AGREEMENT
The language of all parts of this Agreement shall in all cases be construed as a
whole, according to its fair meaning, and not strictly for or against any of the parties. If any
provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be
unenforceable, void, illegal or invalid, such holding shall not affect the remaining covenants and- .
provisions of this Agreement. No covenant or provision shall be deemed dependent upon any
other unless so expressly.provided.here. As used in this: Agreement, the masculine or neuter
gender and singular or plural number shall be deemed to include the other whenever the context
so indicates or requires. Nothing contained herein shall be construed so as to require the
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commission of any act contrary to law, and wherever there is any conflict between any provision
contained herein and any present or future statute, law, ordinance or regulation contrary to which
the parties have no right to contract, then the latter shall prevail, and the provision of this
Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to
bring it within the requirements of the law.
23. DUPLICATE ORIGINAL
The original of this Agreement and one or more copies hereto have been prepared
and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of
the date of its execution and delivery, be deemed an original. Each of the parties hereto shall
retain an originally signed copy hereof. Each duplicate original shall be deemed an original
instrument as against any party who has signed it.
24. IMMIGRATION
CONSULTANT shall be responsible for full compliance with the immigration
and naturalization laws of the United States and shall, in particular, comply with the provisions
of the United States Code regarding employment verification.
25. LEGAL SERVICES SUBCONTRACTING PROHIBITED
CONSULTANT and CITY agree that CITY is not liable for payment of any
subcontractor work involving legal services, and that such legal services are expressly outside
the scope of services contemplated hereunder. CONSULTANT understands that pursuant to
Huntington Beach City Charter Section 309, the .City Attorney is the exclusive legal counsel for
CITY; and .CITY shall not be liable for payment of any legal services expenses incurred by
CONSULTANT.
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26. ATTORNEY'S FEES
In the event suit is brought by either party to enforce the terms and provisions of
this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees.
27. ENTIRETY
The Agreement contains the entire agreement between the parties respecting the
subject matter of this. Agreement and supercedes all prior understanding and agreements whether
oral or in writing. The foregoing sets forth the entire Agreement between the parties.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by and through their authorized offices the day, month and year first above written.
CONSULTANT
KEYSER MARSTON ASSOCIATES, INC.,
a California corpor tion
By: S�
print name
ITS: (circle ale) Chairman/President/ ice Presiden"
ERIN
print name
ITS: (circle one) ecretar hief Financial Officer/Asst.
Secretary — Treasurer
CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
California
NAM
Ma or
ATTEST:-
City Clerk IS-MoF
APPROVED AS TO FORM:
City Attorney
REVIEWED AND APPROVED: r\.vl� t 1�
City AlTministrator
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INI TED AND APPROVED:
r
irec r of Economic Develo ent
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I< LYS 1: R A RS'-1-0N ASS0(- IA'1 ES I NC;.
REAL ESTATE AND ECONOMIC DEVELOPMENT SERVICES
KMA provides a full range of real estate services to its public sector clients. The use of market demand
analyses and pro forma financial analyses to evaluate the financial feasibility of a wide range of projects
is a strength of KMA. Financial feasibility analyses are typically geared toward providing KMA's public
sector clients with a perspective on the private sector development economics for proposed projects.
This is often a key factor in identifying the need for public assistance. Disposition consulting services
cover a broad spectrum, in which KMA assists clients in the disposition of real estate holdings. KMA has
also taken an active role in the negotiation's process leading to numerous DDA's and OPA's. A
description of real estate and economic development consulting services is included below.
REAL ESTATE SERVICES
Feasibility Assessment — KMA has undertaken feasibility studies for clients ranging from
institutional investors, to department stores, to numerous public agencies. While the purpose of
these studies varies considerably, the essence is to identify the basic demand for the use being
tested, an essential component in the decision making process. The Los Angeles office has
undertaken numerous commercial, retail and housing market opportunity assessments, and has
assisted redevelopment agencies in the identification of mid to long-term redevelopment
strategies.
Financial Evaluation — The use of pro forma financial analyses to evaluate the financial
feasibility of a wide range of projects is a strength of KMA. These financial feasibility analyses
are typically geared toward providing KMA's redevelopment agency clients with a perspective on
the private sector development economics for proposed projects. This is often a key factor- in
identifying the need for and extent of public assistance.
Disposition/Owner Participation/Ground Lease Consulting — This service covers a broad
spectrum, in which KMA assists clients in the disposition of real estate holdings. These services
include preparation of developer solicitation documents, developer selection and review,
participation in developer or owner negotiation, and analysis of pending agreements. KMA has
taken an active role in the negotiation process leading to numerous Ground Leases, DDA's and
OPA's.
Reuse Reports — KMA's real estate experience is used in the analysis and preparation of reuse
reports required under Health and Safety Code Section 33433.
Fiscal Impact Analysis — As a full service land economics consulting firm specializing in real
estate predevelopment and evaluation services, KMA has developed extensive experience in
fiscal/economic impact analysis in the assessment of revenue and cost impacts to be generated
by proposed developments or implementation of plans. The analyses evaluate both capital and
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annual on -going revenue and service cost impacts, as well as an evaluation of employment and
income effects.
Economic Benefit and Site Specific Revenue Analysis — As a full service land economics
consulting firm specializing in real estate predevelopment and evaluation services, KMA has
developed extensive experience in fiscal/economic impact analysis in the assessment of revenue
and cost impacts to be generated by proposed developments or implementation of plans. The
analyses evaluate both capital and annual on -going revenue and service cost impacts, as well as
an evaluation of employment and income effects. KMA has recently provided site -specific revenue
analyses for a number of significant projects including the Hollywood/Highland project and the
Grand Central Creative Campus.
ECONOMIC DEVELOPMENT SERVICES
• Revitalization Strategies — KMA has undertaken numerous revitalization studies for public
clients. Based on sound and in-depth analysis of market conditions, KMA has developed
strategies that emphasize implementation. The analyses of market conditions include
demographic trends, employment patterns, commercial activities, and leakage of retail sales to
neighboring communities. From these analyses, KMA formulate economic revitalization
strategies through the development of a targeted industry retention and attraction program.
Business Incentive Programs — KMA has evaluated various business retention mechanisms,
including sales tax rebate, property tax rebate, utility discount, and direct financial assistance.
KMA also advises Business Improvement Districts (BIDs) on commercial revitalization programs
through the design of positioning and repositioning strategies, through the identification of market
potential and niche opportunities, and how to retain and attract specific tenants. We assist in
negotiations with property owners, brokers, prospective retailers, and local officials, and we
assist in the structuring of funding programs.
Tenant Identification and Recruitment — Based upon an in-depth analysis of market potential
and representation of existing tenants, KMA assists public agencies in formulating strategic
tenant recruitment plans. Through the contacts KMA has established from our private sector
clients, KMA can identify tenant interests and assess their potential fit in the market place.
Strategic Plans for Retail, Commercial and Industrial Uses — KMA's economic development
services include identifying optimal mix of retail, commercial and industrial uses. Our expertise in
this area has been particularly suitable for defense and military base conversion projects. KMA's
services have assisted public sector clients in formulating policies that maximize revenue
potential.
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REDEVELOPMENT PLAN ADOPTION AND AMENDMENT SERVICES
KMA has been lead consultant in providing full plan adoption/plan amendment services and has
also provided specific services encompassing financial feasibility analysis, blight study, and
taxing agency consultations. Since AB 1290 passed in 1993, KMA's plan adoption staff has
completed over 30 redevelopment plan assignments. KMA is available to assist the Agency with
specific tasks or can provide full administrative and coordination services to complete all legal,
technical, and procedural requirements for adoption and amending redevelopment plans under
the California Community Redevelopment Law.
KMA is also available to provide the Agency with advisory services related to project area
formation and amendment. Prior to providing redevelopment plan adoption services, KMA meets
with clients to review objectives. and provide a strategy or specific recommendations to expedite
the often long and complicated adoption process. KMA's expertise and knowledge of the
California Community Redevelopment Law will be used to assist the Agency with determining
what types of amendments are most feasible and advantageous to the Agency and to the
objectives of the redevelopment project area. KMA can provide preliminary and feasibility
studies to determine if an area meets the blight test or is financially feasible. KMA can also
provide market studies or economic development services in coordination with formation of
redevelopment project areas to provide a comprehensive approach to revitalization.
AFFORDABLE HOUSING SERVICES
Market and Financial Analysis of Projects with Affordable Housing Component — KMA .
prepares market and financial analyses that result in identifying an appropriate level of agency
participation in a project. We evaluate the impact of burdens and incentives on affordable
housing programs and advise on all aspects of project financing, including the use of low income
housing tax credits, CHFA, HUD, and Federal Home Loan Bank programs.
Prepare Affordable Housing Strategies and Implementation Plans — KMA helps
redevelopment agencies prepare plans for using 20% set -aside monies and federal funding
sources. KMA has extensive experience in creating housing programs that balance available
resources among housing types and various income groups.
Prepare Nexus Studies for Housing Linkage Fees — KMA is expert in preparing nexus studies
that establish development fees to fund the construction of affordable housing. Past KMA
studies have aided major California jurisdictions with these programs. We participated in the
precedent -setting Sacramento case reviewed by the U.S. Supreme Court. These experiences
make KMA uniquely qualified to prepare and assist in defense of these programs.
0010051.KMA:JAR:KHH:gbd
9AAm rinn rm
•
•
Design Inclusionary Housing Programs — Several cities have engaged KMA to assist in the
development of inclusionary housing programs tailored to local economic conditions. KMA's
approach is to work with both agency staff and developers in creating a program reflecting the
local market. KMA assesses the impact of proposed inclusionary requirements on the production
of affordable housing.
Assess Developer Qualifications — KMA has assisted cities in the evaluation and selection of
developers for affordable housing projects. The evaluation typically includes a thorough review
of the developer's track record, financial strength, management company, and development
team.
0010051.KMA:JAR: KHH:gbd
KEYSER MARSTON ASSOCIATES, INC.
HOURLY FEE SCHEDULE
2000101
A. JERRY KEYSER * $195.00
MANAGING PRINCIPALS* $190.00
PRINCIPALS* $175.00
MANAGERS* $150.00
SENIOR ASSOCIATES $135.00
ASSOCIATES $115.00
SENIOR ANALYSTS $100.00 _.
ANALYSTS $ 85.00
TECHNICAL STAFF $ 70.00
ADMINISTRATIVE STAFF $ 55.00
Directly related job expenses not included in the above rates are: auto mileage, air fares, hotels
and motels, meals, car rentals, taxies, telephone calls, delivery, electronic data processing,
graphics and printing. Directly related job expenses will be billed at 110% of cost.
Monthly billings for staff time and expenses incurred during the period will be payable within
thirty (30) days of invoice date. A charge of 1 % per month will be added to all past due
accounts.
* Rates for individuals in these categories will be increased by 50% for time spent in court
testimony.
0010051 XMA:JARXHH:gbd
99900.000.002
•
•
October 9, 2000
«name»
«company»
«address»
((City))
Re: Economic Advisor Services
Dear «name»:
The Redevelopment Agency of the City of Huntington Beach is soliciting qualifications and rate
schedules from firms providing a full spectrum of economic advisor services including real
estate, redevelopment, and economic development. The Agency maintains one project area
that is comprised of five project areas that were merged and one additional project area
currently being created. Economic advisory services are chiefly required for major commercial
and housing projects but are also needed from time to time depending on the Agency's need to
investigate a particular financial issue. Listed below are some of the projects being
contemplated for future economic analysis work.
1. The Ocean Grand Resort and its residential component - The Agency
entered into Owner Participation Agreement to redevelop the Ocean Grand
Resort and a residential project being developed by the Robert Mayer
Corporation. While the resort will be under construction soon, financial matters
on some aspects of the resort are still pending. Also, the residential component
of this project may be changing, as well as its financial and economic
characteristics.
2. Thirty -One Acre Site - A thirty-one acre vacant site on Pacific Coast Highway
between First and Huntington Streets is planned for a major mixed -use project to
include approximately ten acres of commercial zoned land along the Highway
.and the balance of the site in attached housing. It may also include construction
of a major new street. New plans are anticipated to be submitted by owner and
developer of the property. It is anticipated that the Agency will be involved in
some sort of financing package.
3. Affordable Housing Projects - The Agency is also pursuing the achievement of
its affordable housing obligations. The Agency sponsors the acquisition and
rehabilitation of existing multifamily housing and is working with non-profit
«company»
October 10, 2000
Page 2
housing developers to provide for -sale housing to low income buyers and senior
apartment projects for very low-income elderly. Future activities will focus on the
provision of rental housing for low and very -low income households.
4. New Southeast Area Redevelopment Project Area — The Agency is in the
midst of forming a new project area in the Southeast part of the City. This
encompasses 266 acres of industrial zoned land in the midst of wetlands,
adjacent Pacific Coast Highway. The area also includes contaminated land that
must be clean up. Several projects are anticipated to be proposed within the next
two years.
5. Other Projects - In addition to the major activities described above, the Agency
has several smaller scale redevelopment projects in various phases from
conceptual to pending construction.
Your proposal should include the following:
• Statement of Qualifications for the firm.
• Resumes of the firm's principals and staff to be assigned to work with Agency staff.
• List of current and past clients.
• At least three references that may be contacted for whom you have performed services
similar to those solicited herein
• The hourly rates for all firm members, overhead and other charges.
• An estimate of the funds necessary to procure the firm's services for one year.
Anticipated services to be provided to the Agency staff are the following:
• Advice in the negotiation (or renegotiations) of DDA's
• Determination of the level of financial assistance that is warranted for commercial and
residential projects
• Advice on the structure and financing techniques of Agency and developer obligations
• Review and verification of developer pro-formas
• Determination of the reuse value of project sites and preparation of summary reports
pursuant to Sec. 33433 of the California Health and Safety Code
• Comparative analysis of proposed projects in relation to the regional and national markets.
GAGUS\ADMIN ISl'\ECONRFP. DOC
«company»
October 10, 2000
Page 3
• Advice in the structure of development proposal solicitations and review of proposals
submitted
• Advice on the market trends, product type and pricing of proposed market rate housing and
on the affordability of Agency subsidized housing for low and very -low income households.
Please submit the following documents for review by the Redevelopment Agency:
• Statement of Qualifications for the firm
• Resumes of the firm's principals and staff
• List of current and past clients
• At least three references that may be contacted for whom you have performed services
similar to those solicited herein
• The hourly rates for all firm members, overhead and other charges
Please submit an estimate of the appropriation of funds necessary to procure the firm's services
for one year.
Two copies of your proposals for services are due on October 23, 2000. They are to be
delivered to:
Gustavo A. Duran, Housing and Redevelopment Manager
Economic Development Department
2000 Main Street; Fifth Floor
Huntington Beach, California 92648
No submittals will be accepted after the deadline. The Agency reserves the right to request
amendments to submittals as part of the review process and the right to reject any and all
submittals. All firms submitting do so at their own risk and are solely responsible for all costs
involved in the preparation of the submittal, attendance at interviews or other meetings and any
other expenses that may be incurred in facilitating the Agency's thorough review of the
submittals.
Should you have any questions, please feel to contact me at (714) 374-1529.
Sincerely,
Gustavo A. Duran
Housing and Redevelopment Manager
GAGUSWDNIINIST\ECONRFP. DOC
ACOI�DM CERTIFIC E OF LIABILITY INS NCE i�io9iz000
PRODUCER (415)957-0600 FAX 15)957-0577 THIS CERTIFICATE SSUED AS A MATTER, OF INFORMATION
Maroevich O'Shea & Coghl an 11L��hk Vhu�' ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
{ HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
425 Market Street C j��� ` pio, �iF po+3b ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
"Ith Floor
n Francisco, CA 94105 INSURERS AFFORDING COVERAGE
INSURED Keyser Marston Associates, Inc. INSURER A: Royal Insurance Company of America
55 Pacific Avenue Mall INSURERB: Republic Indemnity Co. of California
San Francisco, CA 94111 INSURERC: Philadelphia Indemnity Insurance Company
INSURER D:
INSURER E:
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR
LTR
TYPE OF INSURANCE
POLICY NUMBER
POLICY EFFECTIVE
DATE MM/DD/YY
POLICY EXPIRATION
DATE WM/DD/YY
LIMITS
A
GENERAL LIABILITY
X COMMERCIAL GENERAL LIABILITY
CLAIMS MADE M OCCUR
PSP045725 _
11/11/2000
11/11/2001
EACH OCCURRENCE
$ 11000,000
FIRE DAMAGE (Any one fre)
$ 300,000
MED EXP (Any one person)
$ 10,000
PERSONAL & ADV INJURY
$ 1,000,000
GENERAL AGGREGATE
$ 2,000,000
GEN'L AGGREGATE LIMIT APPLIES PER:
POLICY PRO LOC
JECT
PRODUCTS - COMP/OP AGG
$ 2,000,000
A
(
AUTOMOBILE
LIABILITY
ANY AUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
HIRED AUTOS
NON -OWNED AUTOS
ST244650
- APPROVED AS TO P'' OP
GAIT, 1�I-. _t :.�rl T .,x-h; ,.
CITY ?,`.fiT01.{i,E-Y1
By:
nP U .Z -1-tZr A 't0
11/11/2000
,
�
nE)Y
11/11/2001
_
COMBINED SINGLE LIMIT
(Ea accident)
$ 1 , 000 , 000
X
BODILY INJURY
(Per person)
$
X
BODILY INJURY
(Per accident)
$
X
PROPERTY DAMAGE
(Per accident)
$
GARAGE LIABILITY
ANY AUTO
-
AUTO ONLY - EA ACCIDENT
$
OTHER THAN EA 4CC
AUTO ONLY. AGG
$
$
A
EXCESS LIABILITY
OCCUR a CLAIMS MADE
DEDUCTIBLE
RETENTION $
PLA244650
11/11/2000
11/11/2001
EACH OCCURRENCE
$ 4,000,000
AGGREGATE
$ 4,000,000
Retained Limit
$ None
$
$
B
WORKERS COMPENSATION AND
EMPLOYERS' LIABILITY
03954605
11/11/2000
11/11/2001
'A IOTH-
X I TORY ITS LIMI ER
E.L. EACH ACCIDENT
$ 1,000,000
E.L. DISEASE - EA EMPLOYEE
$ 11000,000
E.L. DISEASE - POLICY LIMIT
$ 11000,000
C
roessional Liability
CL2004421
11/11/2000
11/11/2001
$1,000,000 Each Wrongful Act /
$1,000,000 Aggregate Limit;
$25,000 Deductible
DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS
he City of Huntington Beach, its Agents, Officers and Employees are named as Additional Insured
s their interest may appear as respects General Liability per attached endorsement.
CERTIFICATE HOLDER I I ADDITIONAL INSURED: INSURER LETTER: CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
. ..
EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL XlX MAIL
30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,
City of Huntington Beach
2000 Main Street
Kl(�10�1(IIftXD(df�d�16X�(Xd(�f1C?Q�(lii�4iG�i)614)61QXf�(XX
ii�(D�JFXcD6XA�;�doYXb)fANkxX�D(D(EXrD�(XXXXXXXX
AUTHORIZED REPRESENTATIVE
Huntington Beach, CA 92648
Sharon Voth/SVO
AGUKU Z5-5 (1191) vHwKu wnrvrwlwry IV00
Keyser Marston Associates, Inc. Policy Number PSP045725
ADDITIONAIL INSUREDS
BY CONTRACT, AGREEMENT OR PERMIT
The following is added to Commercial General Liability Section II — Who is an
Insured:
A. Any person or organization you are required by a written contract,
agreement or permit to name as an additional insured to name as an
insured is an insured but only with respect to liability arising out of.
1. "Your work" performed for that insured at the location designated
in the contract, agreement or permit; or
2. Premises owned or used by you.
B. This insurance does not apply unless the contract, agreement or permit is
executed prior to the "bodily injury" or "property damage".
C. This insurance does not apply to the rendering of or failure to render any
professional services.
D. This insurance is primary if that is required by the contract, agreement or
permit.
GC 0330 1097 Royal Insurance Company of America
•
1 6)
CITY OF HUNTINGTON BEACH
INTER -DEPARTMENT COMMUNICATION
Economic Development Department
To: Connie Brockway, City Clerk
From: Gus Duran, Redevelopment and Housing Manager
Subject: Professional Services Contracts, Chapter 3.03
Date: February 21, 2001
This memo is to confirm that the Department of Economic Development complied with
the Professional Services solictation requirements of Chapter 3.03, Huntington Beach
Municipal Code. The request for qualifications and proposals for economic analysis
services were sent to the list of firms (attached) in October 2000. Three firms responded
to the RFQ/RFP. City Council will be considering agreements with these firms at their
March 5, 2001 meeting.
ECONOMIST REQUEST FOR QUALIFICATIONS
Shant Agajanian, Principal
Agajanian and Associates
120 Newport Center Drive Suite 248
Newport Beach, CA 92660
Tel. (714) 640-0664
Fax (714) 640-0668
David A. Wilcox, Senior Vice President
Economics Research Associates
10990 Wilshire Blvd Suite 1600
Los Angeles, CA 90024
Tel. (310) 477-9585
Fax (310) 478-1950
Stephen Copenhaver
GRC & Associates
1340 S Valley Vista Drive Suite 120
Diamond Bar, CA 91765
Phone (909) 396-7714
Fax (909) 396-7913
Lawrence J. Arceniaux, Jr. President
Katz Hollis
865 S Figueroa Suite 1300
Los Angeles, CA 90017-2543
Tel. (213) 629-3065
Fax (213) 623-9105
Jim Rabe/Kathe Head, Principal
Keyser Marston Associates, Inc.
500 S Grand Ave Suite 1480
Los Angeles, CA 90017
Tel. (213) 622-8095
Fax (213) 622-5204
Frank Spevacek
Rosenow Spevacek Group, (RSG)
540 N Golden Circle Suite 305
Santa Ana, CA 92705
Tel. (714) 541-4585
Fax (714) 835-1748
Carol Fredholm
Sedway Group
Wells Fargo Center
355 S. Grand Avenue Suite 3295
Los Angeles, CA 90071
(213)613-1800
(213) 217-4904
HdL Coren & Cone
2220 E. Alosta Avenue, Suite 205
Glendora, CA. 91740
Tel. 818.963.9044
Fax 818.335.8975
G:\GUS\ADM1N1ST\CONSU LTANTS. DOC
0 - 0
RCA ROUTING SHEET
INITIATING DEPARTMENT:
ECONOMIC DEVELOPMENT
SUBJECT:
Approve Economic Consultant Agreements with Keyser
Marston and Associates, the Sedway Group, and the
Rosenow, S evacek Group
COUNCIL MEETING DATE:
March 5, 2001
RCA ATTACHMENTS
STATUS
Ordinance (w/exhibits & legislative draft if applicable)
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Not Applicable
Tract Map, Location Map and/or other Exhibits
Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attome
Attached
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attome
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
Not Applicable
Financial Impact Statement Unbud et, over $5,000
Not Applicable
Bonds If applicable)
Not Applicable
Staff Report If applicable)
Not Applicable
Commission, Board or Committee Report If applicable)
Not Applicable
Find in s/Conditions for Approval and/or Denial
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED
RETURNED
FORWARDED
Administrative Staff a- 30
Assistant City Administrator Initial
City Administrator Initial
City Clerk
t
EXPLANATION FOR RETURN OF ITEM: Saz, &&-i!; A /
°Z J ��++ ee1. _ t %moo. t _v l
t� ' rv!�
RCA Author: Runzel