Report to Carson Reclamation Authority
Tuesday, June 06, 2017
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CARSON RECLAMATION AUTHORITY AND SEG ADVISORS, LLC FOR PROJECT MANAGEMENT SERVICES FOR THE FORMER CAL-COMPACT LANDFILL ("CCLF") PROJECT
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I. SUMMARY
The proposed Agreement for Contract Services (Agreement) between the Carson Reclamation Authority (Authority) and SEG Advisors, LLC (Consultant) is for project management consulting services for the 157-acre brownfield redevelopment project (Project) located at the Carson Marketplace Specific Plan area (Site). The Agreement is for twelve (12) months commencing on July 1, 2017 and ending on June 30, 2018. Compensation under the agreement is $20,000 per month plus $7,500 to cover the Consultant’s errors and omissions insurance, for a not-to-exceed amount of $247,500. The Scope of Work has changed from previous contracts and the Consultant will fill more of an Owner’s Representative role for the Authority.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE Agreement for Contract Services between the Carson Reclamation Authority and SEG Advisors.
2. AUTHORIZE the Chairman to execute the Agreement for Contract Services upon approval as to form by the Authority Counsel.
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III. ALTERNATIVES
TAKE another action the Board deems necessary.
IV. BACKGROUND
The complex nature of the CCLF Project requires the use of highly qualified and experienced consultants. Prior to the acquisition of the Project Site by the Authority in May, 2015, the Consultant worked on the Site for the previous owner, Starwood Property Group, for many years. Under previous Site ownership the Consultant played a major role in the day-to-day oversight of the engineering/construction firm responsible for the remediation of the Site. The Consultant also worked with the Department of Toxic Substances Control (DTSC), the Southern California Air Quality Management District (SCAQMD) and other regulatory agencies to ensure regulatory compliance.
The Consultant’s point person, Mr. John Gebhardt, has been a project manager for various development companies, including J.H. Synder Company and Voit Development Company. He served as the development manager for the 80-acre Simi Valley Business Center. Mr. Gebhardt has a BA from UCLA in Economics and is a Certified Public Accountant (CPA). He holds the designations of Real Property Administrator (RPA) and Facilities Management Administration (FMA).
Mr. Gebhardt’s background on the specific site as well as in the real estate development field has been valuable during the Authority’s negotiations with developers. Under the Agreement, the Consultant will continue to provide project management services including assisting the Authority with leasing and development services for the Project and other services as identified below.
• Review work orders and/or invoices from Authority’s horizontal master developer, RE Solutions, and/or other contractors and consultants prior to payment by Authority.
• Assist Authority with negotiating agreements with Macerich, and the developer of Cells 3, 4, and 5, and developer of Cell 1. Such work shall include evaluation of financial feasibility for proposed projects, potential subsidy programs, construction cost validation and review of proposed tenant merchandising programs.
• Assist with tracking developer contributions and other developer responsibilities and deliverables
• Prepare financial projections as needed, including revisions and updates to Authority Funding Plan, Sales Tax and Transit Occupancy Tax projections, and Community Facilities District (CFD) funding schedules.
• Work with CFD consultants on CFD allocation, implementation, operation and maintenance and the creation of any financing mechanism related to the use of the CFD for development. This includes the set-up of any loan programs from the CRA to CFD 2012-1.
• Investigate any potential funding issues related to CFD 2012-2.
• Assist in organization of voting bodies for CFD’s.
The Consultant’s work for the Authority will also include monitoring the budget and reporting to staff and the Authority Board as needed. The Consultant will also be involved in all project meetings, including work with the regulatory agencies.
The Consultant has an existing contract with the Authority, but that contract will expire at the end of this fiscal year. In order to maintain consistency of information and to keep the Project moving forward efficiently, approval of the Agreement (Exhibit No. 1) is recommended.
V. FISCAL IMPACT
The contract amount of $247,500 will be included in the Authority’s FY 2017-18 budget.
VI. EXHIBITS
1. Agreement for Contract Services. (pgs. 4-28)
Prepared by: Amelia Soto, Project Analyst