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HomeMy WebLinkAbout2012-01-24; City Council; 20791; AMEND AGREEMENT STRATEGIC PLAN FOR REAL PROPERTYCITY OF CARLSBAD - AGENDA BILL 4 Al AB# 20,791 APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR DEVELOPMENT OF A PROFESSIONAL STRATEGIC PLAN FOR REAL PROPERTY ASSETS AND APPROPRIATE FUNDS DEPT. DIRECTOR (^J^^^-— MTG. 01/24/12 APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR DEVELOPMENT OF A PROFESSIONAL STRATEGIC PLAN FOR REAL PROPERTY ASSETS AND APPROPRIATE FUNDS CITY ATTORNEY f^^^^^ DEPT. PEM APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR DEVELOPMENT OF A PROFESSIONAL STRATEGIC PLAN FOR REAL PROPERTY ASSETS AND APPROPRIATE FUNDS CITY MANAGER RECOMMENDED ACTION: Adopt Resolution No. 2012-020 approving Amendment No. 1 to Agreement for Development of a Professional Strategic Plan for Real Property Assets and appropriate funds for the amendment. ITEM EXPLANATION: One of the City Council's priorities for Fiscal Year 2011-12 is to complete a plan to maximize the value and use of underutilized city-owned real estate assets. Due to the variety of asset types and specialized nature of analysis, the Property and Environmental Management (PEM) Department issued a Request for Proposals (RFP) for a qualified firm to create an Asset Strategy Plan including recommendations and alternatives for underutilized real property within the City in accordance with section 3.28.060 of the Carlsbad Municipal Code. As a result of the RFP process, the City selected The Irving Group as the consultant to assist the City with this endeavor. The original professional service agreement was processed through PEM under the City Manager's approval authority. The scope of work for this project included a number of deliverables including assistance with other real property issues related to the evaluation and disposition ofthe City's real property assets, if so directed. Pricing for these additional services was established on a time and material basis. The original RFP contemplated that the selected consultant might be involved in some negotiations on real property issues. Subsequent to executing the initial professional services agreement, staff has determined that there is a benefit to using the professional services of The Irving Group to assist with due diligence on additional potential real property asset transactions. Staff would also like to utilize The Irving Group in real property negotiations where applicable. Staff prepared Amendment No. 1 to the Agreement for Development of a Professional Strategic Plan for Real Property Assets with an amended scope of work to provide property negotiation services (Exhibit 2). As a result ofthe revised scope of work, the value of the agreement exceeds the City Manager's authorization authority, and requires City Council Approval. ENVIRONMENTAL IMPACT: Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review DEPARTMENT CONTACT: Joe Garuba, ioe.garuba@carlsbadca.aov. (760) 434 2893 FOR CITY CLERKS USE ONLY COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER-SEE MINUTES • AMENDED • Page 2 FISCAL IMPACT: The original not-to-exceed cost of this project, including a 15% contingency, was $82,600. The original agreement was funded using budgetary savings in PEM's operating budget. However, due to the changed scope of work, staff requests an appropriation of $40,000 from Council Contingency to fund the additional work associated with this project. Sufficient funds are available in Council Contingency for this request. The funding request is broken down as follows: Item Amount Original Total Not-to-Exceed Amount: $82,600 Total additional funding requested from Council Contingency $40,000 Total Agreement Not-to-Exceed amount: $122,600 EXHIBITS: 1. Resolution No. 2012-020 approving Amendment No. 1 to Agreement for Development of a Professional Strategic Plan for Real Property Assets and appropriate funds for the amendment. 2. Amendment No. 1 to Agreement for Development of a Professional Strategic Plan for Real Property Assets. 7 1 RESOLUTION NO. 2012-020 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 3 CARLSBAD, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO AGREEMENT FOR DEVELOPMENT OF A PROFESSIONAL 4 STRATEGIC PLAN FOR REAL PROPERTY ASSETS AND APPROPRIATE FUNDS FOR THE AMENDMENT 5 • 6 WHEREAS, a strategic goal of the Carlsbad City Council is to complete a plan to maximize the value and use of underutilized city-owned real property assets; and, 8 WHEREAS, due to the variety of asset types and specialized nature of analysis required, 9 the Property and Environmental Management Department determined it required external 10 assistance to achieve Council's goal, and; 11 WHEREAS, a Request for Proposal to achieve this strategic goal was issued on August "12 15, 2011, and 10 (ten) proposals were received by the City on September 14, 2011; and, ^'^ WHEREAS, after a review of all proposals, and interviews with firms, staff has determined that The Irving Group's proposal provided the best value to the City and entered into a Professional Services Agreement for this purpose; and, WHEREAS, staff has determined that a modified scope of work and amendment to the agreement is necessary; and, WHEREAS, the City Council finds it necessary, desirable, and in the public interest to approve and fund said amendment to the professional services agreement; and, WHEREAS, an additional appropriation of $40,000 (forty thousand dollars) is necessary to fund this project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Council hereby approves amendment No. 1 to the Agreement for Development of a Professional Strategic Plan for Real Property Assets. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 1 3. That the Finance Director is authorized to appropriate funds in the amount of 2 $40,000 (forty thousand dollars) for said agreement from the City Council's contingency account. 3 /// 4 /// 5 /// 6 /// 7 /// 8 /// 9 /// 10 /// 11 /// 12 /// 13 /// 14 /// 15 /// 16 /// 17 /// 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 2^ /// III II, 28 H 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council of the City of Carlsbad on the 24"^ day of January, 2012, by the following vote to wit: AYES: Council Members Hall, Kulchin, Blackburn, Douglas and Packard. NOES: None. ABSENT: None. )RRAII^E IVK WOOp, City Clerk (SEAL) REM 564 AMENDMENT N0.1 TO AGREEMENT FOR DEVELOPMENT OF A PROFESSIONAL STRATEGIC PLAN FOR REAL PROPERTY ASSETS (THE IRVING GROUP) This Amendment No.l is entered into and effective as of the 24th day of January , 2012 , amending the agreement dated November 14, 2011 (the "Agreement") by and between the City of Carlsbad, a municipal corporation, ("City"), and The Irving Group, a California Corporation ("Contractor") (collectively the "Parties") for Strategic Real Property Asset consulting services. RECITALS A. The Parties desire to alter the Agreement's scope of work to include due diligence and negotiation services for real property transactions; and D. The Parties have negotiated and agreed to a supplemental scope of work and fee schedule, which is attached to and incorporated by this reference as Exhibit "A", Scope of Services and Fee. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein. City and Contractor agree as follows: 1. In addition to those services contained in the Agreement, as may have been amended from time to time. Contractor will provide those services described in Exhibit "A". 2. City will pay Contractor for all work associated with those services described in Exhibit "A" for a flat fee of twenty five thousand dollars ($25,000). Additionally the City will control a contingency amount of fifteen thousand dollars ($15,000) to be used on an as-needed basis, for other due diligence and negotiations issues as they arise. The total maximum amount payable under this agreement now will not exceed one hundred twenty thousand, six hundred dollars ($120,600). Contractor will provide City, on a monthly basis, copies of invoices sufficiently detailed to include hours performed, hourly rates, and related activities and costs for approval by City. Payments for the work shall be made incrementally based upon completed items of work as described on an invoice submitted by the Contractor to the City and, as verified by the City Property and Environmental Management ("PEM") Director, or his designee. No work shall be performed against the contingency allowance, identified above, unless and until a written scope of work and/or services has been approved by the City PEM Director, or his designee, and written authorization to proceed on such contingency work has been issued in writing by the City PEM Director, or his designee. 3. Contractor will complete all work described in Exhibit "A" by November 14, 2012. 4. Contractor understands that it will be receiving confidential information from the City Council in closed session. Contractor shall not disclose any such confidential City information to a third party or to the public without the specific consent of the City City Attorney Approved Version 5/12/11 [9 PEM 564 5. All other provisions of the Agreement, as may have been amended from time to time, will remain in full force and effect. 6. All requisite insurance policies to be maintained by Contractor pursuant to the Agreement, as may have been amended from time to time, will include coverage for this Amendment. 7. The individuals executing this Amendment and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Amendment. CONTRACTOR CITY OF CARLSBAD, a municipal corporation of the State of California By: Mayor name/title) ATTEST: By: / - (f. /r^icc^ ^—? (sign here) (print name/title) If required by City, proper notarial acknowledgment of execution by Contract^M;^>mi^Ti)^o"''' attached. If a corporation. Agreement must be signed by one corporate officer from ecItfh'of'tHe following two groups: Group A Chairman, President, or Vice-President Group B Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: RONALD R. BALL, City Attorney BY: Assistant City Attorney City Attorney Approved Version 5/12/11 PEM 564 EXHIBIT "A" SCOPE OF SERVICES AND FEE 1. Contractor will provide services as outlined in The Irving Group's proposal dated December 15, 2011 incorporated herein as Exhibit "B", for a lump sum fee of twenty five thousand dollars ($25,000). 2. Contractor will provide other consulting on due diligence matters related to Real Property Assets as directed by the City from time-to-time, although not guaranteed, for an amount not to exceed fifteen thousand dollars ($15,000). All work done at City's request (over and above the scope of work defined in Exhibit "B" and the Original Agreement dated November 14, 2011), shall be billed on a monthly basis, using the following rate schedule: Title Hourly Rate Founder & President $ 420.00 CFO $ 180.00 President-CM Division $ 270.00 Project Manager $ 150.00 Director $ 90.00 Analyst $ 60.00 Researcher $ 48.00 City Attorney Approved Version # 05.22.01 IRVING PEM 564 Exhibit "B" to Amendment No. 1 December 15, 2011 Mr. Joe Garuba City of Carlsbad Propeity & Environmental Management 405 Oak Avenue Carlsbad, CA 92008 RE: Proposal for Westficld Negotiations Mr. Garuba, Thank you for the opportunity to work with the City of Carlsbad in your negotiations with Westfield regarding Plaza Camino Real. Per our discussions, please see our proposed scope and budget for the anticipated final phase of negotiations. It is our mutual goal to reach a resolution with Westfield that creates additional value for the City. Scope Below is our anticipated scope: 1. Meeting with Staff to discuss strategy and intended outcome. 2. Prepare for initial meeting with Westfield regarding our opinion of a fair market deal. 3. Initial meeting with Westfield to present opinion on fair market deal. 4. Additional analysis and due diligence based on Westfield's response to our proposal and additional meeting with Staff. 5. Prepare for and attend second meeting with Westfield to respond to objections raised in initial meeting and present alternatives. 6. Further analysis and due diligence in response to Westfield. 7. Prepare for and attend final meeting with Westfield to present best and final olTer. 8. Decide on final resolution with Staff and Council. Price For the Scope outlined above only, our fee for the Westfield negotiations is twenty-five thousand dollars ($25,000.00). Thank you for working with the li-ving Group on this assignment. Please don't hesitate to contact me if you have any questions. Best Regards, Simon Teny-Lloyd, MBA, LEED AP Vice President & Project Manager Cell: (760)802-3217 liiiivcrsily i\-ui.:r {.-.uw. Sulk' WO, Sun |Jk:!>o, ( KliloniKi ')2i21 | Tdcplwiw: SS>;.W9.()I20 I l ax. S5!(.W),()21S | ww\v, llKjomEii^^^^ 9