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CC:HA - (1) Waiver of Formal Competitive Bidding Procedures; and (2) Approval of a Professional Services Agreement with Keyser Marston Associates, Inc. for Financial Consulting Services on an As-Needed Basis.
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Meeting Date: July 9, 2018
Contact Person/Dept: Todd Tipton / Community Development
Tevis Barnes / Community Development
Phone Number: 310-253-5783
310-253-5782
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (07/03/18);
Department Approval: Sol Blumenfeld, Community Development Director (06/29/18)
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RECOMMENDATION
Staff recommends the City Council and the Culver City Housing Authority (Housing Authority) Board (1) waive formal competitive bidding procedures; and (2) approve a professional services agreement with Keyser Marston Associates, Inc. (KMA) for financial consulting services on an as-needed basis.
BACKGROUND
KMA has provided financial consulting services to the City and former Culver City Redevelopment Agency (CCRA) since 1981; and, more recently, to the Successor Agency to the CCRA (Successor Agency), Housing Authority and Culver City Parking Authority. Since 1981 KMA’s agreements have been amended numerous times. The recent agreements with the City and the Housing Authority both expired in early 2018.
KMA’s services include, but are not limited to:
• Analysis of real estate transactions and negotiations;
• Assistance with real property negotiations;
• Assistance with affordable housing transactions and preparation of required reports (pursuant to Health and Safety Code Section 33433);
• Valuation of community benefits in connection with the City’s Mixed Use Development Ordinance; and
• Analysis of affordable housing/density bonus requests (SB 1818).
DISCUSSION
In general, Culver City Municipal Code (CCMC) Section 3.07.065 exempts professional services from the formal competitive bidding process. However, pursuant to CCMC Section 3.07.045, where the same consultant has been utilized for a period of five years, the formal bidding procedures shall apply unless waived by the City Council.
KMA has extensive knowledge and expertise in real estate and housing development finance, State affordable housing law and implementation of density bonus provisions. In addition, KMA has significant institutional knowledge and a thorough understanding of and familiarity with City, Successor Agency and Housing Authority projects. KMA is expected to assist Housing Division staff with the new affordable housing programs recently approved by City Council, and KMA’s knowledge, expertise and understanding of the City and Authority environments will be critical to this process. Also, KMA has been an important resource for the City and Housing Authority in providing fair, high quality, practical and timely work on demand as needed.
KMA was involved in all of the major projects of the former CCRA including Culver Steps, Ivy Station, Tilden Terrace, Globe Ave/Habitat for Humanity, Baldwin Motel/Axis Mundii, Westfield Mall revitalization, Culver Public Market -Market Hall, Town Plaza/ArcLight Theatre (2002), Heritage Park/Studio Village Drive In, Target (on Jefferson Blvd), downtown revitalization projects (City Hall, Meralta), Mike Miller Toyota/Honda, Kite Site (Hooman Chevrolet/Sprouts/Office Depot), projects in the Hayden Tract, tax-exempt bond refinancing efforts and a multitude of other matters.
For these reasons, staff recommends the City Council waive the formal bidding requirements pursuant to CCMC Section 3.07.075.F.3, and approve a professional services agreement with KMA on an as-needed basis. Because the agreement would be on an as-need basis, there would be no maximum compensation amount. The maximum compensation amount would be determined through the annual budget process.
FISCAL ANALYSIS
KMA’s hourly rates are identified in Attachment No. 1 and have not changed since 2008. KMA does not anticipate increasing their rates and has committed to honor the existing rates until 2020.
During FY 2017/2018 Funds for KMA’s services have been appropriated in the Economic Development and Housing budgets.
ATTACHMENTS
1. KMA hourly rates 2018/2019.
MOTION
That the City Council and Housing Authority Board:
1. Waive formal competitive bidding procedures in accordance with CCMC Section 3.07.075.F.3;
2. Approve respective professional services agreements with Keyser Marston Associates, Inc., for financial consulting services on an as-need basis; and;
3. Authorize the City Attorney/Housing Authority General Counsel to review/prepare the necessary documents, and;
4. Authorize the City Manager/Housing Authority Executive Director to execute such documents on behalf of the City/Housing Authority.