REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Dave Kiff, Interim City Manager
PREPARED BY: Kellee Fritzal, Deputy Director of Economic Development
Subject:
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Approve and authorize execution of a three-year Professional Services Contract with Keyser Marston Associates, Inc. for as-needed Economic Analysis Services; and, increase Office of Business Development Professional Services Listing
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Statement of Issue:
The City requires economic analysis services for various development pro forma and residential projects. Staff is requesting approval of a three-year contract for Keyser Marston Associates, Inc. to perform these services on an as-needed basis.
Financial Impact:
FY 2019/20 budget includes appropriation to cover this year's expenditures. The total contract is not to exceed $270,000, at an estimated $90,000 annually. Appropriations will be requested in subsequent fiscal years.
Recommended Action:
recommendation
A) Approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract Between the City of Huntington Beach and Keyser Marston Associates, Inc. for Economic Analysis Services" in an amount not to exceed $270,000 over a three-year period; and,
B) Increase the Office of Business Development Professional Services Listing by $90,000.
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Alternative Action(s):
Do not authorize the contract and direct staff accordingly.
Analysis:
The Office of Business Development requires a variety of economic analysis services for projects on an as-needed basis. During the term of the contract, the firm Keyser Marston Associations, Inc. could provide technical and financial analysis for such projects as:
• Sales Tax Sharing Agreements
• State Density Bonus Analysis
• State and Federal required monitoring services for restrictive rental properties
• Annual State mandated Housing Compliance Report
• Subside Layering Analysis for HOME assisted projects and financial gap analyses for project assisted with LMIHAF or Inclusionary In-Lieu fees
• Special projects on an as needed basis
On June 17, 2019, the Office of Business Development released a Request for Proposals (RFP) to solicit proposals from qualified consultants for as-needed economic analysis services. The following five firms responded to the RFP:
• Economic & Planning Systems
• Keyser Marston Associates, Inc.
• Kosmont Companies
• Rosenow Spevacek Group, Inc. (RSG)
• Tierra West Advisors, Inc.
Each proposal was reviewed and scored by a panel comprised of staff from Finance, Accounting Services, and the Office of Business Development based on the criteria outlined in the RFP. Consideration in the evaluation of submittals included: successful implementation and monitoring of City financed projects of Successor Agency and Housing Authority; ability to commit key personnel; ability to meet strict deadlines; and a competitive fee schedule. The ability to best provide services, consultant experience, and meeting the three components of the RFP, were ultimately the determining factors in awarding the bid to Keyser Marston Associates, Inc. Accordingly, after evaluating the responses, Staff concluded that Keyser Marston Associates, Inc. best demonstrated the ability to provide the most comprehensive services at a competitive price.
Keyser Marston Associates, Inc. will provide assistance as directed and will augment Business Development on projects that require complex financial analysis. Based on their expertise in the field, knowledge of Huntington Beach, and understanding of the City's request and competitive rates, staff recommends approval of the Professional Services Contract with Keyser Marston Associates, Inc. in the amount of $90,000 per year for a three (3) year term, for a total not to exceed $270,000
Environmental Status:
Not Applicable
Strategic Plan Goal:
Strengthen long-term financial and economic sustainability
Attachment(s):
1. "Professional Services Contract Between the City of Huntington Beach and Keyser Marston Associates, Inc.”