Title
Recommendation to Authorize the City Manager to Execute a One-Year Agreement with Keyser Marston Associates, Inc. in an Amount Not to Exceed $150,000, with the Option to Extend for up to Two Additional Years for a Total Compensation of $450,000 for On-Call Economic and Financial Consulting at Alameda Point. (Community Development 819099)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
This report requests authorization of an agreement for on-call economic and financial consultation for 2021, with up to two, one-year extensions. All work under this agreement will be restricted to funds appropriated and available for the specific projects for which work is assigned.
BACKGROUND
On-call consultant service agreements are used for services requiring expertise that City of Alameda (City) staff does not have and/or to supplement City staff during peak work demand. Currently, there is a need for economic and financial services for current and upcoming development projects, financial due diligence, fiscal impact analysis, financial deal structuring and other such services.
On December 19, 2019, the City issued a Request for Qualification (RFQ) for on-call consulting services for economic and financial consulting. A total of seven (7) Statement of Qualifications were received.
City staff reviewed each firm based on the proposal packages submitted. The proposals were evaluated based on the ability of the firm to perform the proposed scope of work, relevant experience, client references, and overall completeness of the proposal and project approach.
Based on the results of the evaluation, staff is recommending Keyser Marston for on-call services for the services outlined in the scope of work.
DISCUSSION
Keyser Marston has one of the largest real estate advisory practices on the West Coast. Among the firm’s primary concentrations are highest and best use analysis, disposition strategies for publicly-owned sites, market demand analysis, and financial feasibility assessments of complex, mixed-use development projects, affordable housing and public/private partnerships. David Doezema is a Principal in KMA’s Northern California office and will be the primary consultant on the contract. Mr. Doezema has been responsible for much of the firm’s recent work for the City, including fiscal impact analysis with respect to two recent voter initiatives, financial due diligence and review of the Alameda Landing project, successor agency services and fiscal consultant reports in connection with refinancing of successor agency bonds. Mr. Doezema’s experience with real estate consulting also includes Levi Stadium in Santa Clara and the base reuse project, Dunes at Monterey Bay.
The scope of services that Mr. Doezema will perform includes:
1. Analysis of excess residential units under the Memorandum of Agreement with the Navy;
2. Financial analysis to support negotiations with Site A, West Midway and/or other development projects at Alameda Point;
3. Formulation/analysis of business terms proposed by developers at Alameda Point;
4. Other written products and presentations on an as-needed basis and as requested from time-to-time; and
5. Meetings and communication with City staff and/or participation in City Council meetings on an as-needed basis.
FINANCIAL IMPACT
The agreement will be funded from the Base Reuse Fund (858-819099) in an amount not to exceed $150,000 for the first year. The Base Reuse Fund (858) has sufficient balance in its Fiscal Year 2020-21 expenditure budget for the first year of the agreement. Should the agreement be extended beyond the first year, funding for the agreement would be subject to future City Council appropriations approval. There is no impact to the General Fund.
ALTERNATIVES
• Approve staff’s recommendation and execute an agreement with Keyser Marston for a one-year term with the option of two, one-year extensions for on-call economic and financing consulting services.
• Make the agreement a one-year agreement with no extensions, which would mean returning to City Council for a new agreement or an amendment if additional services are needed.
• Select a different consultant from the list of responders to the RFP. This alternative will require time to negotiate a new contract and return to City Council.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is not impacted by the Alameda Municipal Code and has no cross reference.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment. This action is not a project pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15378.
CLIMATE IMPACTS
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to execute a one-year agreement with Keyser Marston Associates, Inc. in an amount not to exceed $150,000 with the option to extend for up to two additional years for a total compensation of $450,000 for on-call economic and financial consulting at Alameda Point.
CITY MANAGER RECOMMENDATION
The proposed contract is a not-to-exceed contract. The amount actually expended will be dependent on project specific analysis for various development proposals.
Respectfully submitted,
Lisa Nelson Maxwell, Interim Community Development Director
By
Michelle Giles, Base Reuse Manager
Financial Impact section reviewed,
Annie To, Finance Director
Exhibit:
1. Service Provider Agreement
cc: Eric Levitt, City Manager