HomeMy WebLinkAboutSEDWAY KOTIN MOUCHLY GROUP - 1996-06-17 CITY OF HUNTINGTON BEACH
2000 MAIN STREET CAUFORNIA 92648
OFFICE OF THE CITY CLERK
COtr'h'IE BROCKWAY
CITY CLERK
June 18, 1996
Michael Conlon
Sedway Kotin Mouchly Group `
12100 Wilshire Boulevard, Suite 1050
Los Angeles, California 90025
Dear Air. Conlon:
The Redevelopment Agency of the City of Huntington Beach at their regular meeting held
June 17, 1996 approved execution of the enclosed agreement between the Agency and the
Sedway Kotin Moucaly Group for Economic Professional Services.
Enclosed is a duly executed copy of the agreement for your records.
Sincerely,
Connie Brockway
City Clerk/Redevelopment Agency Clerk
Enclosure: Agreement
(Tatephone:714.536.6227)
Council/Agency Meeting Held:
Deferred/Continued to:
CTApproved ❑ Conditionally Approved O Denied City Clerk's Si a ure
Council Meeting Date: .tune 17, 1996 Department ID Number. ED 96-33
CITY OF HUNTINGTON BEACH
REQUEST FOR REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY
MEMBERS
SUBMITTED BY: MICHAEL T. UBERUAGA, Executive Director
PREPARED BY: DAVID C. BIGGS, Director of Economic Development
SUBJECT: Contracts with Economic Advisors
Statement of Issue,Funding Source,Recommended Action,Attemative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: Staff recently solicited proposals from firms that provide economic
advisory services to redevelopment agencies. Three firms responded and staff recommends
contracting with two of the firms.
Funding Source: Redevelopment Agency Tax Increment
Recommended Action: Motion to:
Approve and authorize execution of the attached contracts between the Redevelopment
Agency and the firms of Keyser Marston Associates, Inc. and Sedway Kotin Mouchly Group
to provide economic advisory and reuse analysis services to the Redevelopment Agency for
a period of two years at a combined not to exceed cost of$100,000 annually.
Alternative Action(s): Do not approve the attached contracts.
v
REQUES7'%wOR REDEVELOPMENT AGb*wCY ACTION
MEETING DATE: June 17, 1996 DEPARTMENT ID NUMBER: 'ED 96-33
Analysis: Since the inception of the Redevelopment Agency's programs, it has
contracted with Keyser Marston Associates, Inc. (KMA) to provide economic advisory
services. To confirm the skills available from firms in this field, staff recently solicited
proposals from seven firms. ' Three firms responded and. were interviewed by a panel
consisting of the Mayor, Director of Economic Development and the Redevelopment Project
Manager. "
After deliberation, the panel recommended the preparation of contracts with the KMA firm
(the current contract would expire in September 1 996) and with the Sedway Kotin Mouchley
Group (SKMG). Contracting with both firms will allow the flexibility to assign tasks according
to the services required and distribute the work load to assure timely response while
maintaining the continuity and historical perspective important to the Agency's long-term
projects.
The scope of work for each contract is identical and includes the type of services typically
required by the Agency including analysis of developer pro formas, preparation of reuse
appraisals, determination of warranted financial.assistance to projects, advise on housing
programs and funding and the preparation of the Summary Reports required by Sec. 33433
of the California Health and Safety Code. Each contract has a term of two years and a not
to exceed authority of$50,000 annually ($100,000 for the first year).
These services will allow the Agency to continue work on its ongoing projects like The
Waterfront, Main-Pier Phase 11, Third Block West and the Huntington Beach Mall and initiate
or respond to new development opportunities in the project areas.
Environmental Status: NA
Attachments
Page Number"
,<r 1. Professional Services Contract with Keyser Marston Associates, Inc.
2. Professional Services Contract with Sedway Kotin Mouchley Group.
RAA9633.DOC -2- 29.05.96 3:21 PM
V
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH AND
SEDWAY KOTIN MOUCHLY GROUP TO
PROVIDE ECONOMIC PROFESSIONAL SERVICES
Table of Contents
Section Page
1 WORK STATEMENT. 1
2 AGENCY STAFF ASSISTANCE . 2
3 TIME OF PERFORMANCE . 2
4 COMPENSATION . 2
5 EXTRA WORK . 2
6 METHOD OF PAYMENT . 2
7 DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS . 4
8 INDEMNIFICATION, DEFENSE, HOLD HARMLESS . 4
9 WORKERS' COMPENSATION 5
10 INSURANCE . 5
11 CERTIFICATES OF INSURANCE . 6
12 INDEPENDENT CONTRACTOR . 7
13 TERMINATION OF AGREEMENT 7
14 ASSIGNMENT AND SUBCONTRACTING 7
15 COPYRIGHTS/PATENTS . 7
16 AGENCY EMPLOYEES AND OFFICIALS 7
17 NOTICES 8
18 IMMIGRATION. . 8
19 LEGAL SERVICES SUBCONTRACTING PROHIBITED . 8
20 ATTORNEY FEES . 9
21 ENTIRETY . 9
71krSEDWAYl3/3196
PROFESSIONAL SERVICES CONTRACT BETWEEN
THE REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH AND
SEDWAY KOTIN MOUCHLY GROUP TO
PROVIDE ECONOMIC PROFESSIONAL SERVICES
THIS AGREEMENT is made and entered into this. 1?4-,-day of
193!6_, by and between the THE REDEVELOPMENT AGENCY
OF THE CITY OF HUNTINGTON BEACH, a public body, hereinafter referred to as "AGENCY',
and SEDWAY KOTIN MOUCHLY GROUP, a California corporation, hereinafter referred to as
"CONTRACTOR."
WHEREAS, AGENCY desires to engage the services of a contractor to provide
economic consulting services in the City of Huntington Beach; and
Pursuant to documentation on file in the office of the Agency Clerk, the provisions of
HBMC Chapter 3.03 relating to procurement of professional service contracts has been
complied with; and
CONTRACTOR has been selected to perform said services,
NOW, THEREFORE, it is agreed by AGENCY and CONTRACTOR as follows:
1. WORK STATEMENT
CONTRACTOR shall provide all economic consultant services as reflected on
Exhibit"A,"attached hereto and incorporated into this Agreement by this reference. Said
services shall sometimes hereinafter be referred to as"PROJECT."
CONTRACTOR hereby designates Michael Conlon who shall represent it and be its
sole contact and agent in all consultations with AGENCY during the performance of this
Agreement.
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7,k/S SWAY/5/21/96
2. AGENCY STAFF ASSISTANCE
AGENCY shall assign a staff coordinator to work directly with CONTRACTOR in
the performance of this Agreement.
3. TIME OF PERFORMANCE
Time is of the essence of this Agreement. The services of the CONTRACTOR
are to commence as soon as practicable after the execution of this Agreement The contract
willnot exceed a two-year period, commencing with the date of the signing of this Agreement,
without written authorization by the Agency's Executive Director.
4. COMPENSATION
In consideration of the performance of the services described herein, AGENCY
agrees to pay CONTRACTOR as described in Exhibit"B," a fee not to exceed Fifty Thousand
Dollars ($50,000) in the first year, and a maximum of five percent(5%) increase in the second
year.
5. EXTRA WORK
In the event AGENCY requires additional services not included in Exhibit"A', or
changes in the scope of services described in Exhibit W. CONTRACTOR will undertake such
work after receiving written authorization from AGENCY. Additional compensation for such
extra work shall be allowed only if the prior written approval of AGENCY is obtained.
6. METHOD OF PAYMENT
A. CONTRACTOR shall be entitled to progress payments toward the faced
fee set forth herein in accordance with the progress and payment schedules set forth in
Exhibit"A."
B. Delivery of work project: A copy of every technical memo and report
prepared by CONTRACTOR shall be submitted to the AGENCY to demonstrate progress
2
7,WSEWAY13/3196
V
toward completion of tasks. In the event AGENCY rejects or has comments on any such
product, AGENCY shall identify specific requirements for satisfactory completion. Any such
project which has not been formally accepted or rejected by AGENCY shall be deemed
accepted.
C. The CONTRACTOR shall submit to the AGENCY an invoice for each
progress payment due. Such invoice shall:
9) 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 the
CONTRACTOR'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 AGENCY is satisfied that
CONTRACTOR is making satisfactory progress toward completion of tasks in accordance with
this Agreement, AGENCY shall promptly approve the invoice, in which event payment shall be
made within thirty (30) days of receipt of the invoice by AGENCY. SUCH approval shall not be
unreasonably withheld. If the AGENCY does not approve an invoice, AGENCY shall notify
CONTRACTOR 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 Exhibit"A'shall be
suspended until the parties agree that past performance by CONTRACTOR is in, or has been
brought into compliance, or until this Agreement is terminated as provided herein.
D. Any billings for extra work or additional services authorized by the
AGENCY shall be invoiced separately to the AGENCY. Such invoice sha'i contain all of the
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71105EWAY15/3196
Information required above, and in addition shall list the hours expended and hourly rate
charged for such time. Such invoices shall be approved by AGENCY if the work performed is
in accordance with the extra work or additional services requested, and if AGENCY 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 conceming 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.
CONTRACTOR agrees that ail materials prepared hereunder, including all
original drawings, designs, reports, both field and office notes, calculations, maps and other
documents, shall be tamed over to AGENCY 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 AGENCY in the completion of PROJECT or as it otherwise
sees fit. Title to said materials shall pass to the AGENCY upon payment of fees determined to
be earned by CONTRACTOR to the point of termination or completion of the PROJECT,
whichever is applicable. CONTRACTOR shall be entitled to retain copies of all data prepared
hereunder.
8. INDEMNIFICATION, DEFENSE, HOLD HARMLESS
CONTRACTOR shall indemnify and save and hold harmless AGENCY, its
officers and employees, from any and all liability, including any claim of liability and any and all
losses or costs arising out of the negligent performance of this Agreement by CONTRACTOR,
its officers or employees.
4
7,10SEWAY/513l96
9. WORKERS' COMPENSATION
CONTRACTOR shall comply with all of the provisions of the Workers'
Compensation Insurance and Safety Acts of the State of California, the applicable provisions
of the California Labor Code and all amendments thereto; and all similar state or federal acts
or laws applicable; and shall indemnify, defend and hold harmless AGENCY from and against
all claims, demands, payments, suits, actions, proceedings and judgments of every nature and
description, including attorneys' fees and costs presented, brought or recovered against
AGENCY, 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 CONTRACTOR under this Agreement.
CONTRACTOR shall obtain and furnish evidence to AGENCY of maintenance
of statutory workers'compensation insurance and employers' liability In an amount of not less
than $100,000 bodily injury by disease, each emp'oyee, and $250,000 bodily injury by disease,
policy limit.
10. INSURANCE
In addition to the workers' compensation insurance and CONTRACTOR'S
covenant to indemnify AGENCY, CONTRACTOR shall obtain and furnish to AGENCY the
following insurance policies covering the PROJECT:
A. GAneral Liability Insurance. A policy of general public liability insurance,
including motor vehicle coverage. Said policy shall indemnify AGENCY, 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 not less than the
following amount: corntined single limit bodily injury and property damage. including products,
completed operations liability and blanket contractual liability. of S1,000,000 per occurrence. If
coverage is provided under a form which includes a designated general aggregate limit, the
S
7&SEWAY1313.9b
aggregate limit must be no less than $1,000,000. Said policy shall name AGENCY, its officers
and employees 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 CONTRACTOR'S insurance shall be primary.
B. Professional Liability Insurance. CONTRACTOR shall acquire a
professional liability insurance policy covering the work performed by it hereunder. Said policy
shall provide coverage for CONTRACTOR'S professional liability in an amount not less than
$500,000 per claim. A claims made policy shall be acceptable.
11. CERTIFICATES OF INSURANCE
Prior to commencing performance of the work hereunder, CONTRACTOR shall
furnish to AGENCY certificates of insurance subject to approval of the Agency Counsel
evidencing the foregoing Insurance coverages as required by this Agreement; said certificates
shall provide the name and policy number of each carrier and policy, and shall state that the
policy is currently in force and shall promise to provide that such policies will not be canceled
or modified without thirty (30) days prior written notice to AGENCY. CONTRACTOR shall
maintain the foregoing insurance coverages in force until the work under this Agreement is
fully completed and accepted by AGENCY.
The requirement for carrying the foregoing insurance coverages shall not
derogate from the provisions for indemnification of AGENCY by CONTRACTOR under this
Agreement. AGENCY cr its representative shall at all times have the right to demand the
original or a copy of all said policies of insurance. CONTRACTOR shall pay, in a prompt and
timely manner, the premiums on all insurance hereinabove required-
6
7;L SEWAY/511-96
12. INDEPENDENT CONTRACTOR
CONTRACTOR is, and shall be, acting at all times in the performance of this
Agreement as an independent contractor. CONTRACTOR shall secure at its expense, and be
responsible for any and all payments of all taxes, social security, state disability insurance
compensation, unemployment compensation and other payroll deductions for CONTRACTOR
and its officers, agents and employees and all business licenses, if any, in connection with the
services to be performed hereunder.
13. TERMINATION OF AGREEMENT
All work required hereunder shall be performed in a good and workmanlike
manner. AGENCY may terminate CONTRACTOR'S services hereunder at any time with or
without cause, and whether or not PROJECT is fully complete. Any termination of this
Agreement by AGENCY shall be made in writing through the Director of Economic
Development, notice of which shall be delivered to CONTRACTOR as provided herein.
14. ASSIGNMENT AND SUBCONTRACTING
This Agreement Is a personal service contract and the supervisory work
hereunder shall not be delegated by CONTRACTOR to any other person or entity without the
consent of AGENCY.
15. COPYRIGHTS/PATENTS
AGENCY shall own all rights to any patent or copyright on any work. item or
material produced as a result of this Agreement.
16. AGENCY EMPLOYEES AND OFFICIALS
CONTRACTOR shall employ no AGENCY official nor any regular AGENCY
employee in the work performed pursuant to this Agreement. No officer or employee of
7
7Ac,'SEWAY13l3/96
AGENCY shall have any financial interest in this Agreement in violation of the applicable
provisions of the California Govemment Code.
17. NOTICES
Any notices or special instructions required to be given in writing under this
Agreement shall be given either by personal delivery to CONTRACTOR'S agent (as
designated in Section I herein above) or to AGENCY'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 Services, addressed as follows:
TO AGENCY: TO CONTRACTOR:
Director of Economic Development Michael Conlon
City of Huntington Beach Sedway Kotin Mouchly Group
2000 Main Street 12100 Wilshire Boulevard, Ste 1050
Huntington Beach, CA 92647 Los Angeles, CA 90025
18. IMMIGRATION
CONTRACTOR shall be responsit:le 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.
19. LEGAL SERVICES SUBCONTRACTING PROHIBITED
CONTRACTOR and AGENCY agree that AGENCY 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. CONTRACTOR understands that
pursuant to Huntington Beach City Charter§309, the City Attorney is the exclusive legal
counsel for AGENCY, and AGENCY shall not be liable for payment of any legal services
expenses incurred by CONTRACTOR.
8
7,WSEWAY155M
MY-22-96 WED 13:19 FAX NO. 4157818118 P. 11
MAY-21-19% 12:43 - 1 P.11
V
20. ATTORNEYS FEES
In the event suit is brought by either party to enforce the torms and provisions of this
agrooment or to secure the performance hereof,each party shall bear Its own attorney's fees.
24. ENTIRETY
The foregoing, and Exhibb attached hereto, set forth the entre Agreement
been the parties.
IN WITNESS YMEREOF.the paves hereto have Caused this agreement to be
exewted by and through their authotized offices the day.month and year first above written.
SEDWAY KOTIN MOLICHLY GROUP CITY OF HUNTINGTON BEAC '•'=�'•••. °1"
municipal corporation of the S
Califomle . . . , :•: . M z
.T
Prw Owe Mayor
ITS: (d*ww ZhIs s 0 P Wt a PrakkRft-
'I?_ ATTEST:
gyp cI 3 jb
IW ears City Clerk
ITS: fcftk one)se retat),M kt FimrMat
OtrioerlAsit Secretary-Tt"tuw APPROVED AS TO FORM:
6
City Attorney
WED AND e2(�- _AMROVED. b' mil,
INITIATED AND APPROVED:---�7/ff
c-+ty AdminWi -
Di or of Econoft Development
9
7,�vaYrlrJ,�s
SLN-07-1996 10:17 P.02
20. 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 ovrn attorneys fees.
21. ENTIRETY
The foregoing, and Exhibits attached hereto, set 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.
SEDWAY KOT1N MOUCHL.Y GROUP REDEVELOPMENT AGENCY OF THE CITY
OF HUNTINGTON BEACH. a public body
1 '
ey LYPn M. beGWdY
Chairman
print name
ITS: (drde one)Ch trmanlPresidentlVioe President ATTEST:
By: /
Terry Rf Pihr2OCUm Agency Clerk
print name
ITS: (&ofe one)SecretarylChief Financial APPROVED AS TO FORM:
Officer/Asst Secretary-Trees-urer
t �L�'• Agency Counsel S-
REVIEWED AND APPROVED: INITIATED AND APPROVED.
&J'l 4 C-
Executive Directer Dire or of Economi Development
9
UNEWAY/=1/96
TOTAL P.02
20. 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.
21. ENTIRETY
The foregoing, and Exhibits attached hereto, set 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.
SEDWAY KOTIN MOUCHLY GROUP REDEVELOPMENT AGENCY OF THE CITY
OF HUNTINGTON BEACH, a public body
Z)er. <r %
print name Chairman _
ITS: (circle one)Chairman/President/Vice President ATTEST:
Iu�i -
By' 00 4t dt Agency Clerk
print name _
ITS: (circle one)Secretary/Chef Financial APPROVED ASITO FORM: -
Officer/Asst. Secretary-Treasurer
t�,,,1o. l Agency Counsel S V
R AP ROVED: INITIATED AND APPROVED:
Executive i ctor Dire„ or of Economic Development
9
7,14FWAY15,71196
EXHIBIT A
I. INTRODUCTION
Sedway Kotin Mouchly Group(SKMG),in conjunction with Katz Hollis,is pleased to submit
our qualifications to provide economic advisory services to the Redevelopment Agency of
the City of Huntington Beach in response to that Agency's Request for Qualifications(RFQ)
dated February 1966.Specifically,the Agency has requested advisory services that include
the following:
I. Advice in the negotiation(or renegotiation)of DDAs;
l 2. Determination of the level of financial assistance that is warranted for commercial
and residential projects;
3. Advice on the structure and financing techniques of Agency and developer
obligations;
4. Review and verification of developer pro formas;
5. Determination of the reuse value of project sites and preparation of summary reports
pursuant to Section 33433 of the California Health and Safety Code;
6. Comparative analysis of proposed projects in relation to the regional and national
markets;
7. Advice in the structure of development proposal solicitations and review of proposals
submitted;and
8. 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.
Sedway Kotin Mouchly Group believes our background and experience,when combined
with those of Katz Hollis,will provide the Agency with the expertise needed to provide the
above services.SWG's assistance will be provided in service areas I,2,4,6,7,and S,as listed
above.
1
EXHIBIT B
ATTACHMENT III
SEDWAY KOTIN MOUCHLY GROUP
r
PUBLIC SECTOR PROFESSIONAL FEE SCHEDULE*
Effective through June 30,1996
Professional Fees Per Hour
Lynn M.Sedway,Allan D.Kotin and Ehud G.Mouchly $160
Other Principals $120-$150
Managers $110-$120
Senior Associates $95-$100
Associates $70-$85
Analysts $55
Word Processors $45
Administrative $35-$45
Expert Witness Testimony**
Lynn M.Sedway,Allan D.Kotin and Ehud G. Mouchly $180
Principals $135-$170
i Managers $135
1 Senior Associates $110-$115
Associates $80-$100
t Analysts $65
• Word Processors $55
Administrative $40-$55
These rates represent a 10 to 20 percent discount from our private-sector professional rates.
For testimony and deposition only, with a four-hour minimum. Preparation billed at standard
professional rates.
BILLING POLICIES
L Bills are due and payable in full within 30 days of invoice date. Past due invoices will accrue interest,at
18 percent.
2. Questions about billings must be addressed in writing to SWG within 21 days of date of invoice. The
absence of any such inquiries shall be deemed admowledgnent of Snags services and agreement with
s1Qvias charges for such services. If a dispute arises under the agreement of which this schedule is part,
the prevailing party in such dispute shall be entitled to reasonable attorney's fees and costs of suit.
Agreed to and Authorized by; ,.�
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