HomeMy WebLinkAbout2012-01-24; City Council; 20791; AMEND AGREEMENT STRATEGIC PLAN FOR REAL PROPERTYCITY OF CARLSBAD - AGENDA BILL 4
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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.
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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.
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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.
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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
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