HomeMy WebLinkAboutE-18 Staff Report - Agreement with KosmontCONSENT ITEM
E-18
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: LOUIE F. LACASELLA, MANAGEMENT ANALYST
DATE: MARCH 7, 2016
SUBJECT: APPROVE AMENDMENT TO LETTER AGREEMENT WITH KOSMONT COMPANIES
FOR ECONOMIC DEVELOPMENT ADVISORY SERVICES
SUMMARY:
Kosmont and Associates, Inc., doing business as Kosmont Companies, was retained by the City pursuant to a
Letter Agreement dated July 2, 2015 to provide economic development advisory services with a focus on
prioritized retail opportunity sites within the City, including the site known as Block 36 at the southeast corner of
Azusa Avenue and Foothill Boulevard. This action approves an amendment to the Letter Agreement with
Kosmont Companies increasing the total compensation of the agreement by an additional $20,000 for a not-to-
exceed amount of $45,000 for additional economic development advisory services.
RECOMMENDATION:
Staff recommends that the City Council take the following actions:
1)Approve an amendment to the Letter Agreement with Kosmont Companies for Economic Development
Advisory Services increasing the agreement by an additional $20,000 for a not-to-exceed amount of
$45,000.
2)Authorize the City Manager to execute the amendment, in a form acceptable to the City Attorney, on
behalf of the City.
DISCUSSION:
Kosmont Companies is a nationally recognized real estate, financial advisory and economic development services
firm that serves cities, counties, public agencies, private corporations, landowners, non-profit organizations and
developers across California.
Last year, the City Manager approved a Letter Agreement with Kosmont Companies to provide economic
development services and in particular provide assistance with the preparation and issuance of a Request for
Proposals (RFP) for the development of Block 36. In addition, Kosmont evaluated and ranked the responses
received to the RFP, as well as participated in five developer interviews alongside City Staff and the City
Council’s Ad Hoc Committee.
APPROVED
COUNCIL MEETING
3/7/16
Amendment to Letter Agreement for Economic Development Advisory Services
March 7, 2016
Page 2
With the completion of developer interviews, Kosmont has completed their initial scope of services. At this time,
Staff is requesting an amendment to the Letter Agreement with Kosmont in order for them to complete the
following additional tasks:
Additional Developer Due Diligence and Selection Advisory
Based on proposals and interviews, Kosmont will coordinate with City Staff to prepare follow up questions for
Finalists. Kosmont will report developer feedback and correspondence for use by the Ad Hoc Committee in
determining the next steps of action. Additional due diligence may include tours of finalists’ representative
projects in the greater Los Angeles area and review of Bank of America parking agreement. If finalists make
presentations to the City Council, Kosmont will prepare for and attend the City Council meeting.
Preferred Developer Recommendation and Initial Negotiations
Kosmont will assist the Ad Hoc Committee in reaching a decision on a preferred developer with whom the City
should enter into an Exclusive Authorization Agreement (“ENA”). Kosmont will also assist in the initial
negotiations with the preferred developer.
FISCAL IMPACT:
The cost of the additional work is estimated not-to-exceed $20,000. Staff is able to shift funds from other line
items within the current year’s budget to cover the additional contract amount through the end of the fiscal year.
Prepared by: Reviewed and Approved:
Louie F. Lacasella Troy L. Butzlaff, ICMA-CM
Management Analyst City Manager
Attachments:
1) Amended Letter Agreement with Kosmont Companies
ATTACHMENT 1
AMENDMENT TO LETTER AGREEMENT
FOR ECONOMIC DEVELOPMENT ADVISORY SERVICES
This Amendment to the Letter Agreement with Kosmont Companies is made and entered
into this 8th day of March, 2016, by and between the CITY OF AZUSA, a municipal corporation
("City") and Kosmont & Associates, Inc.,dba, Kosmont Companies ("Consultant") and amends
that certain "Letter Agreement with Kosmont Companies " (the "Agreement") dated July 2, 2015
between the same parties.
R E C I T A L S
A. On or about July 2, 2015, City and Consultant entered into a “Letter Agreement”
pursuant to which Consultant agreed to provide Economic Development Advisory
Services (“Project”).
B. City requires additional services that are outside the Consultant’s established
compensation.
C. City and Consultant desire to amend the Agreement to modify the compensation.
A G R E E M E N T
The Agreement is hereby amended as follows:
1. The compensation of this Agreement shall not exceed $45,000 (FORTY-FIVE
THOUSAND DOLLARS). The Consultant shall complete the Services within the
term of this Agreement, and shall meet any other established schedules and
deadlines.
2. Except as expressly provided herein, all other terms and conditions of the
Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto executed this Amendment to be effective
as of the date first written above.
CITY OF AZUSA KOSMONT & ASSOCIATES, INC
Approved by: Reviewed and Accepted by Contractor:
Troy Butzlaff, ICMA-CM Name:
City Manager Title:
Attest:
Date
Jeffrey L. Cornejo, Jr.
City Clerk
Approved as to Form:
Best Best & Krieger LLP
City Attorney