Title
Recommendation to Authorize the City Manager to Execute an Amendment to an Agreement with Willdan Financial Services, Inc. to Add the Amount of $50,000 for a Total Contract Amount of $120,000 for Economic Consulting Services Related to Alameda Point. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Recommendation to Authorize the City Manager to Execute an Amendment to an Agreement with Willdan Financial Services, Inc. to Add the Amount of $50,000 for a Total Contract Amount of $120,000 for Economic Consulting Services Related to Alameda Point
BACKGROUND
The City of Alameda retained Willdan Financial Services (Willdan) in July 2013 to provide economics consulting services to the City as the City pursued entitlement, disposition and development efforts associated with the reuse and redevelopment of Alameda Point.
Willdan's previous work with the City included:
· Preparing fiscal impact analyses for Alameda Point;
· Advising the City on a conceptual financing plan for Alameda Point, in general, and as part of the Waterfront Town Center Plan area within Alameda Point;
· Evaluating the financial qualifications of potential developers at Alameda Point; and
· Supporting the City in negotiations with developers on transaction documents, such as term sheets, Exclusive Negotiation Agreements, and the proposed Disposition and Development Agreement with the Site A developer.
City staff is recommending an amendment to its existing agreement with Willdan for economic consulting services for Alameda Point to continue providing similar services on an as needed basis. Under a separate contract, Willdan also prepared the City's Development Impact Fee analysis for the City and Alameda Point and is helping the City prepare a benefit-cost analysis for the City's application for a $10 million federal grant for multi-modal street infrastructure.
DISCUSSION
Willdan is a highly qualified economics consulting firm that specializes in municipal finance, fiscal impact analyses, and other unique economic issues associated with base reuse. A statement of qualifications for Willdan is attached as Exhibit 1. Examples of relevant work include: the East Garrison Specific Plan Financing and Implementation study on the former United States Army property at Fort Ord in Monterey, renegotiation of the former United States Navy property at Mare Island Development Agreement with Lennar Corporation on behalf of the City of Vallejo, and infrastructure financing and fiscal impact analysis for the County of Napa for a specific plan for the Napa Pipe project in southern Napa County.
Additionally, the principal-in-charge and day-to-day point of contact for the City, Mr. James Edison, lives in Alameda, and is very familiar with the unique economics issues presented by the City of Alameda and Alameda Point. Economic issues confronted by the reuse and redevelopment of a former base are numerous and complex. It is important for City staff to work closely with a consultant who is an expert in base reuse issues and is familiar with the local economic and technical issues confronted by Alameda Point. This allows the City to leverage the use of Willdan's time in a cost-effective manner.
Willdan's proposed scope of work for this amendment is summarized below:
· Prepare ongoing updates to the Alameda Point and Site A fiscal impact analyses, and provide fiscal impact analysis for other development projects as they arise to ensure consistency with the City's fiscal neutrality policy for Alameda Point;
· Provide ongoing negotiation support to the City on economic issues on the Site A and other disposition and development transactions; and
· Continue to refine the City's approach to infrastructure financing at Alameda Point as new plans and development transactions are prepared and implemented.
It is recommended that the City Manager be authorized to execute an amendment to the agreement with Willdan for $50,000 for a total contract amount of $120,000. The agreement would expire on June 30, 2016.
FINANCIAL IMPACT
There is no financial impact to the City's General Fund. Funds for Alameda Point environmental services will come from the Base Reuse Department Lease Revenue budget (Fund 858 Division 819099).
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15061(b)(3).
RECOMMENDATION
Recommendation to authorize the City Manager to execute an amendment to an agreement with Willdan to add the amount of $50,000 for a total contract amount of $120,000 for economic consulting services related to Alameda Point.
Respectfully submitted,
Jennifer Ott
Chief Operating Officer - Alameda Point
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Willdan Financial Services Statement of Qualifications to the City of Alameda
2. Consultant Agreement with Willdan Financial Services, Inc.