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Home My WebLink About04 ASSIGN CONS SVCS 03-03-97DATE: MARCH 3, 1997 Inter-Com NO. 4 3-3-97 TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER CHRISTINE A. S1TINGLETON, ASSISTANT CITY MANAGER .~" ~-' AUTHORIZATION FOR ASSIGNMENT OF CONSULTANT AGREEMENT SERVICES RECOMMENDATION It is recommended that the City Council authorize the City Manager to execute an assignment of the Consultant Services Agreement with Sedway Kotin Mouchly Group to KMG Consuking. FISCAL IMPACT The anticipated costs for the preparation of the Business and Development Plan will remain at $99,300. Funding has been secured'in the amoum of $50,000 from a Department of Defense Office of Economic Adjustment grant with the balance of costs funded with 1996-97 Community Development Block Grant funds. BACKGROUND and DISCUSSION On April 1, 1996, the City Council authorized the City Manager to execute a Consultant Services Agreement with the Sedway KOtin Mouchly Group for preparation of a Business and Development Plan for MCAS, Tustin (Staff Report Attached). These plans will be essential to the City's analysis of how best to proceed with the acquisition and redevelopment of the base. The preparation of these plans was significantly delayed while the Coast Guard's request for existing housing units was being resolved. With resolution of the Coast Guard issue, work is now set to proceed. On January 24, 1997, KMG Consulting (KMG) sent the attached letter requesting an assignment of the current Consultant Services Agreement. KMG is a Kotin Mouchly Group. The City Attomey's Office has reviewed the requested assignmem and recommends that the City Council concur in any assignment of the agreement. Attachments KBB:kKMGASSIGN KMG CONSULTING KOTIN MOUCHLY GROUP Real Estate and Urban Economics RECEI' ." D 1Z100 Wilshire Boulevard Suite 1050 Los Angeles, California 900~.5 Tel 310 820-0900 Fax 310 820-1703 www.kmgconsult.com January 24, 1997 Ms. Christine Shingleton Assistant City Manager City of Tustin Tustin Civic Center 300 Centennial Way Tustin, CA 92680 Re.' Assignment of Contract for Consulting Services Relating to MCAS Tustin Reuse, Business and Development Plan Dear Ms. Shingleton: To follow up on our recent telephone conversation, we are sending you this document for your signature in order to formally assign the consulting contract between the City of Tustin and Sedway Kotin Mouchly Group to KMG Consulting (KMG). KMG is a successor company to Sedway Kotin Mouchly Group. Your signature at the place indicated at the end of this letter will constitute the assignment of this contract. The scope of work to be performed and the contract amount will remain the same. KMG also intends to retain the services of the same subcontractors, Public Financial Management (PFM) and CCL Construction Consultants. In addition, KMG will utilize the services of Sedway Group as a subcontractor on certain aspects of the economic conveyanCe analysis, spedfically Terry Margerum and Naomi Porat, who have extensive experience on the Fort Ord reuse plan. Because of the time that has passed since the proposal was submitted and the. contract awarded, we are enclosing a revised proposed work schedule which indicates which work tasks will be completed at what time during the estimated five months required to complete the assignment. KMG Ms. Christine Shingleton January 24,1997 Page 2 We look forward to formally commencing work on this contract beginning with a kick-off meeting and tour of the air station during the week of January 27. Sincerely yours, ASSIGNMENT OF CONTRACT TO KMG CONSULTING AGREED TO BY: Christine Shingleton Assistant City Manager City of Tustin Date C:~ILES\TUS53796\WPk~SSGNMT.RSS z o o DATE: APRIL 1, 1996 TO- WILLIAM A. HUSTON, CITY F1ANAGER FROM: CHRISTINE A. SHINGLETON, ASSISTANT CITY MANAGER SUBJECT: AUTHORIZATION FOR CONSULTANT SERVICES FOR PREPARATION OF A BUSINESS AND DEVELOPIHENT PLAN . . Recommendation It ,is recOmmended that the City Council authorize th.e City l~lanager to execute a Consultant'Services Agreement with the Sedway Kotin Plouchly Group for preparation of a Business and DeVelopment Plan. ' Eiscal Impact The anticipated costs for the preparation of the Business and Development Plan would be $99,300. Partial funding for the work has been secured in the amount of $50,000 from a Department of Defense Office of Economic Adjustment grant. The balance of the anticipated costs for the project are recommended to be funded with 1996-9 7 Community Development Block Grant funds. , ~Back~ound and Discussion On July 20,-1995, the Department of Defense published the final rules for implementing portions of the National Defense Authorization Acz.__for FY 1994. The[rules provide the City of Tustin an'opportunity to obtain dfle to surplfls military prop~rfies at or.below fair market value through an Economic Development. Conveyance (EDC). The purpose of an EDC is to foster economic development and the creation of |ohs, enhancing economic recovery of areas negatively impacted by base closure. Approval of an EDC requires the submission of an applicatiQn and number of items of information which eXplain whY an EDC is being requested. One of the items to be submitted is a Business and Development Pi.an which must include the following: · A development timetable, phasing plan and cash flow analysis; · · A market and financial feasibility analysis describing the economic viability of the project, including an estimate of net proceeds over a fifteen-year period, the proposed consideration or payment to the Department of Defense, and the estimated fair market value of the property; · A cost esdmate and justification for infrastructure and other investments needed for the development of the EDC parcel; · Local investment and proposed financing strategies for. the develc~pment. City Council Report April 1, 1996 Page Two The preparation of a Business and Development Plan is a prerequisite to the City of Tustin making an application for an EDC. Based on the economic and financial analysis provided in. the Business and Development Plan, the City would decide whether to seek one or more economic conveyances of portions or all of the base. If the City decides to seek and EDC(s), the Business and Development Plan will become an integral part of that application. In addition, the document will be a critical resource document for planning and administration purposes as well as for securing much needed loans, fi~ancing and bonds necessary to offset the significant, infrastructure improvement costs which must be accommodated for economic development to occUr at the base.. The City is interested in rapidly transferring the base for reuse by the private sector. Regardless of whether an EDC application is.submitted or whether the Department of the Navy approves an EDC request by the LRA, a Business and Development Plan is desired to assist in making: the application decision and in making further business decisions relative to property disposal at the base. Due to limited personnel resources, the City solicited a Request for Proposal (RFP) to develop the required Business and Development Plan. An RFP was sent to 31 firms in late summer of 199.5. Responses were received from nine lead firms (Attachment A). After a len~hy ranking process and reference review, interviews were held with the follOwing firms: Williams Kuebeibeck ~ Associates [] Gruen, Gruen ~ Associates [] Economic Research Associates [] Sedway Kotin Mouchly Group The following representatives were members of the City's interview panel and ranking process: Assistant City Manager, Rede. ve. lopmen, t__ Pro~ram Manager~'. Senior Planner, Chairman of the' City's Economic Development Coundl (Chuck ~Oble from Lea and Associates), and John Lynch, a representative from Kutak Rock and one of the City's consultants on base closure legal issues in Washin~on, D.C. Based.on the interviews and reference checks, the Sedway Kodn Mouchly' Group '(SKM) was s~lected as the most qualified firm to undertake the project. SKM is currendy working with Fort Ord and Treasure Island in Northern California on developing Business Development Plans. The interview panel also established some parameters for their choice of SKM which, required additional contract negotiation and an increase of the oriCnally prepared contract price, including additional principal involvement and sub-consultant work. Significant work is not anticipated to begin on the project until resolution of the Coast Guard issue. The attached contract has been approved by the City Attorney's office. The proposed project has been partially funded by a $50,000 grant from the Department of Defense Office of Economic..Development. The remaining portion of the funding is recommended to be funded by the City's I c)c)6-c)7 Community Block Grant application. At~chment