DATE: June 12, 2018
SUBJECT:
Title
RESOLUTIONS SELECTING AND AUTHORIZING AGREEMENTS WITH:
A) AECOM TECHNICAL SERVICES, INC.
B) BAE URBAN ECONOMICS, INC.
C) CIVITAS, INC.
D) CUSHMAN & WAKEFIELD WESTERN, INC.
E) ECONOMIC & PLANNING SYSTEMS, INC.
F) HR&A ADVISORS, INC.
G) ILLUMINAS CONSULTING, LLC
H) JONES LANG LASALLE AMERICAS, INC.
I) KEYSER MARSTON ASSOCIATES, INC.
J) LONDON MOEDER ADVISORS
K) MARISOLVE
L) MAURICE ROBINSON & ASSOCIATES, LLC
M) PARAGON PARTNERS LTD.
N) PRO FORMA ADVISORS, LLC
O) RASMUSON APPRAISAL SERVICES
P) ROBERT CHARLES LESSER & CO. DBA RCLCO
Q) GLENN A. RICK ENGINEERING & DEVELOPMENT CORPORATION DBA RICK
ENGINEERING CO.
R) STREAM REALTY PARTNERS, LP
S) THE DORE GROUP, INC.
T) XPERA, INC DBA XPERA GROUP
TO PROVIDE AS-NEEDED REAL ESTATE CONSULTING SERVICES FOR A TOTAL AGGREGATE AMOUNT PAYABLE UNDER THE AGREEMENTS NOT TO EXCEED $3,100,000 FOR A PERIOD OF UP TO THREE YEARS BEGINNING JULY 1, 2018 AND ENDING JUNE 30, 2021; ALL FUNDS FOR FUTURE FISCAL YEARS WILL BE BUDGETED IN THE APPROPRIATE FISCAL YEAR, SUBJECT TO BOARD APPROVAL UPON ADOPTION OF EACH FISCAL YEAR’S BUDGET
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EXECUTIVE SUMMARY:
BPC Policy No. 110 establishes the San Diego Unified Port District’s (District) procedure for processing and administering agreements with consultants for services rendered to the District. The District’s Real Estate Department, in recent years, has utilized as-needed consultants' agreements spanning multiple years to allow for a more efficient and expedited method of obtaining real estate consulting services. In doing so, staff has been able to expedite processing times for Real Estate consulting agreements and obtain professional consulting services quickly and efficiently at a competitive rate. It has also enabled staff to work with qualified consultants on several Real Estate projects and tasks concurrently within the following disciplines: financial and feasibility analysis (including appraisals), market and economic analysis, real estate development negotiation services and new business development services. The current as-needed agreement commenced on August 12, 2015 and expires June 30, 2018; therefore, staff is recommending the Board’s consideration of a new set of as-needed consultants within Real Estate to ensure continued efficiency in processing current and anticipated Real Estate work efforts and tasks.
Pursuant to BPC Policy No. 110, District staff issued Request for Qualifications (RFQ) 17-84RH for As-Needed Real Estate Consulting Services on February 5, 2018. The District received 22 responsive proposals. Based on the review of the written proposals, the panel selected the 20 highest-ranked firms. Staff recommends that the Board select and authorize as-needed agreements in substantial form and compliance with the attached agreements with the 20 selected firms to provide as-needed real estate consulting services for a total aggregate amount payable under the agreements not to exceed $3,100,000 for a period of three years (Attachments A thru T).
RECOMMENDATION:
Recommendation
Adopt a resolution selecting and authorizing agreements with: AECOM Technical Services, Inc.; BAE Urban Economics, Inc.; Civitas, Inc.; Cushman & Wakefield Western, Inc.; Economic & Planning Systems, Inc.; HR&A Advisors, Inc.; Illuminas Consulting, LLC; Jones Lang LaSalle Americas, Inc.; Keyser Marston Associates, Inc.; London Moeder Advisors; Marisolve; Maurice Robinson & Associates, LLC; Paragon Partners Ltd.; Pro Forma Advisors, LLC; Rasmuson Appraisal Services; Robert Charles Lesser & Co. dba RCLCO; Glenn A. Rick Engineering & Development Company dba Rick Engineering Co.; Stream Realty Partners, LP; The Dore Group, Inc.; and Xpera, Inc. dba Xpera Group for as-needed real estate consulting services for a total aggregate amount payable under the agreements not to exceed $3,100,000 for a period of three years beginning July 1, 2018 and ending June 30, 2021.
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FISCAL IMPACT:
Funds for FY 2019 expenditures are budgeted for in the Real Estate Professional Services expense budget. Funds required for future fiscal years will be budgeted for in the appropriate fiscal years and cost account, subject to Board approval upon adoption of each fiscal year’s budget.
Compass Strategic Goals:
The Board’s authorization for the As-Needed Real Estate Consulting Services agreements will streamline the solicitation process for retaining consultants to assist the District with its various real estate efforts. This agenda item supports the following Strategic Goal(s).
• A Port that the public understands and trusts.
• A thriving and modern maritime seaport.
• A vibrant waterfront destination where residents and visitors converge.
• A Port with a healthy and sustainable bay and its environment.
• A Port with a comprehensive vision for Port land and water uses integrated to regional plans.
DISCUSSION:
Over the years, the District’s Real Estate Department has entered into contracts with consultants on an as-needed basis to meet lease and project requirements as they arise. The use of as-needed consultants has enabled Real Estate staff to streamline the solicitation process for retaining consultants as projects arise, rather than go through a separate consultant procurement process each time a project is proposed. Due to the numerous work efforts anticipated and the variety of tasks that may be needed, retaining several as-needed consultants will establish a greater capacity to work on multiple projects concurrently. Furthermore, staff has found that retaining as-needed consultants ensures a prompt response and competitive pricing for the requested services. Based on past experience, staff anticipates this approach will save approximately six to eight weeks of time that would otherwise be spent to solicit and engage consultants in a standalone agreement. Notwithstanding this approach, the District may still choose to conduct a separate consultant procurement process for certain special projects or tasks, rather than use the proposed as-needed consultants, if necessary.
The current as-needed agreement commenced on August 12, 2015 and expires
June 30, 2018; therefore, staff is recommending the Board’s consideration of a new set of as-needed consultants within Real Estate for future real estate projects and tasks. Accordingly, pursuant to BPC Policy No. 110, the District completed an RFQ process and selected 20 firms to recommend to the Board for as-needed agreements, as further described below.
The Board’s approval of the recommended agreements would allow Real Estate staff to continue to enlist consultant services for the following tasks: financial and feasibility analysis (including appraisals), market and economic analysis, real estate development negotiation services, and new business development services for the next three years, as funds will allow. Thereafter, barring any conflicts of interest, as a project arises; staff may select an as-needed consultant for specific services.
For the tasks noted above, staff proposes that the District enter into 20 separate as-needed consultant agreements with the selected firms for a total aggregate amount payable under the agreements not to exceed $3,100,000 for a period of three years.
Request for Qualifications and Consultant Selection
Pursuant to BPC Policy No. 110, on February 5, 2018, District staff issued RFQ 17-84RH seeking As-Needed Real Estate Consulting Services to provide financial and feasibility analysis (including appraisals), market and economic analysis, real estate development negotiation services, and new business development services. The RFQ described the consulting services required by the District, the agreement terms and conditions and the competitive process by which the District procures consulting services.
Prior to the issuance of the RFQ, Real Estate coordinated with MarCom to advertise the real estate consulting services RFQ via online ads in real estate-focused publications, direct e-mail blasts, real estate related social media outlets and on the District’s website. In addition, handouts were created and distributed at conferences attended by Real Estate staff. The RFQ was electronically mailed to 251 firms known to offer the necessary services and that have expressed interest in working with the District on real estate projects. An Information Exchange Meeting was held February 12, 2018. In total, 22 responsive proposals to the RFQ were received by the deadline of March 7, 2018, from the following firms: AECOM Technical Services, Inc.; BAE Urban Economics, Inc.; Civitas, Inc.; Conduit Group; Cohn Reznick; Cushman & Wakefield Western, Inc.; Economic & Planning Systems, Inc.; HR&A Advisors, Inc.; Illuminas Consulting, LLC; Jones Lang LaSalle Americas, Inc.; Keyser Marston Associates, Inc.; London Moeder Advisors; Marisolve; Maurice Robinson & Associates, LLC; Paragon Partners Ltd.; Pro Forma Advisors, LLC; Rasmuson Appraisal Services; Robert Charles Lesser & Co. dba RCLCO; Glenn A. Rick Engineering & Development Company dba Rick Engineering Co.; Stream Realty Partners, LP; The Dore Group, Inc.; and Xpera, Inc. dba Xpera Group. The 22 proposals were evaluated by a panel of District staff. Based on the review of the written proposals, the panel selected the following 20 highest-ranked firms:
AECOM Technical Services, Inc. (AECOM) - AECOM, established in 1990, is a global professional services firm providing consulting services to a broad range of markets that includes providing various ports with intermodal infrastructure essentials for the facilitation of efficient maritime trade, and economic analysis for land and water use as well as real estate strategies. AECOM has experience working with the District and other ports, such as the Ports of Los Angeles, Long Beach, Oakland, and Hueneme. AECOM provided a thorough approach to providing the following services: financial and feasibility analysis, market and economic analysis, and real estate negotiating services. AECOM also displayed an understanding of the needs of the District as well as a wealth of relevant experience in providing similar services to the District as well as other ports and government agencies. AECOM’s relevant experience includes, but is not limited to: the real estate benchmarking study and appraisal, the Port Master Plan update, market financial analysis to support Low Cost Overnight Accommodation Policy, and market analysis of potential waterfront commercial recreation attraction types for the District, Star Building Hotel feasibility study for San Diego County, economic and fiscal impact of Soccer City for San Diego Regional Economic Development Corporation, Downtown San Diego retail study for Centre City Development Corporation, as well as Port of San Francisco Pier 70 Master Plan.
BAE Urban Economics, Inc. (BAE) - BAE, established in 1986, is a national urban economics and real estate consultancy firm that has provided services to public agencies, non-profit organizations, financial institutions as well as real estate investors and developers. BAE has a “triple bottom-line” approach and incorporates sustainable economics, equity, and the environment into their services. BAE displayed an understanding of the needs of the District as well as a wealth of relevant experience in providing similar services to the District as well as other ports and government agencies. BAE’s experience includes providing market and feasibility analysis, development feasibility analysis, and hotel demand projections for the Port of San Francisco, Long Beach Civic Center, LA Metro, and the City and County of San Diego.
Civitas, Inc. (Civitas) - For the past 34 years, Civitas has worked with numerous private organizations and a myriad of multi-agency organizations across the country to realize-world class planning and design. Civitas, located in Denver, Colorado, has a deep portfolio of waterfront and planning work involving complex and diverse client groups and governing agencies. Civitas has a team of landscape architects, architects, urban designers and planners which have led large-scale, complex projects in some of the most contentious areas of the country, including extensive work in the greater San Diego region. District project experience includes: North Embarcadero Visionary Plan Phase 1, Broadway Pier Surface Enhancements, Lane Field Park, and is currently working with the District on the landscape architecture design for the Imperial Beach Pier. Additional experience includes: Stapleton Parks and Open Space Master Plan, Balboa Park Central Mesa Projects, Central Platte Valley Project, Belmar Development, and Los Angeles River Revitalization Master Plan.
Cushman & Wakefield Western, Inc. (Cushman & Wakefield) - Cushman & Wakefield, founded in 1917, is a multi-disciplinary, full -service real estate services firm and one of the largest real estate service providers in the region providing transaction strategy and planning, lease renewals and rent reviews, lease restructuring and surrenders, acquisitions and dispositions, and appraisal services. The proposed team is comprised of professionals with over 20 years’ experience in providing these services and will also be partnering with MLArchitecture (MLA) to provide cost estimating services. Cushman & Wakefield’s experience includes appraisal and IRR/NPV calculations of Seaport Village and Old Police Headquarters for Terramar Retail Center, appraisal and advisory services for the Chula Vista Bayfront (southwest corner of G Street & Marina Parkway) for United Technologies Corporation, and appraisal and feasibility analysis and highest and best use testing of Manchester Pacific Gateway for Manchester Financial Group. In addition, over the past decade, they have assisted a variety of federal, state, and local governments with real estate valuation and strategy needs.
Economic & Planning Systems, Inc. (EPS) - EPS, founded in 1983, is a land economics consulting firm experienced in financing of public infrastructure, land use and conservation planning and government services. Their services include preparing fiscal, market and economic analyses for prospective port and tenant projects and assisting with real estate negotiations. Over the last decade, the District has retained EPS to conduct economic impact reports, supporting staff with the formation of the Joint Powers Authority with the City of Chula Vista, and conducting market and economic impact analysis related to the expansion of the Hilton Bayfront Hotel. In addition, EPS’ experience includes working with the Ports of Long Beach and San Francisco to provide financial and feasibility analysis and market and economic analysis.
HR&A Advisors, Inc. (HR&A) - HR&A, founded in 1976, is a real estate, economic development and energy efficiency consulting firm. They have experience assisting in performing financial and feasibility analyses; fiscal, market and economic analyses for prospective port and tenant projects; and assisting with real estate negotiations. HR&A proposed a clear approach to providing real estate consulting services. HR&A’s experience includes working for the San Diego Association of Governments (SANDAG), San Diego County Regional Airport Authority (SDCRAA), Cities of San Diego and Oceanside. HR&A has recently been working with District staff on producing a vision plan for the realignment of Harbor Drive and the buildout of the North Embarcadero section of the San Diego waterfront into an international waterfront destination.
Illuminas Consulting, LLC (Illuminas) - Illuminas, founded in 2009, is a consulting firm that provides strategic guidance for real estate and urban economics. The Illuminas' professionals have over 60 years of combined experience providing services to both public and private-sector clients. Relevant services provided by Illuminas include, but are not limited to: ground lease analysis and negotiation support, gap financing strategies, developer solicitation and evaluation, redevelopment and revitalization strategies, asset management, development concept formulation and testing, land planning optimization, public benefits analysis and presentation (fiscal impact), and public agency coordination. In addition to the proposed team, illuminas will also partner with San Diego based sub-consultant Paul Curcio of Miralto for local staff interaction. Mr. Curcio has over 30 years’ experience providing real estate consulting. A clear approach and thorough understanding of the District’s needs was displayed and some of the relevant experience includes working with the Los Angeles County Department of Beaches and Harbors for transaction support and for the Cities of Ventura and Carson performing ground lease negotiation, pro forma analyses and due diligence review, and fiscal impact services.
Jones Lang LaSalle Americas, Inc. (JLL) - JLL is an international financial and professional services firm that specializes in commercial real estate services. They have expertise in public sector real estate and providing technical real estate services to ports across a number of asset classes. Since 2013, JLL has been retained by the District on a number of high-profile and wide-ranging real estate advisory engagements. These engagements include development and transaction advisory for specific projects, highest and best use valuation analyses on multiple sites and large-scale financial impact analyses encompassing the District’s real estate portfolio. In addition, JLL has provided development advisory, financial feasibility analysis, market research, and negotiation support for the County of San Diego, Cities of Napa, Seattle, and Los Angeles; and the New York and New Jersey Port Authorities.
Keyser Marston Associates, Inc. (KMA) - KMA has 45 years of experience providing creative, pragmatic solutions on complex in-fill and community revitalization developments. KMA has expertise in working with public agencies to develop complex financial analyses and cash flows, along with fiscal and economic studies and assisting in real estate negotiations and lease structuring. KMA’s relevant experience includes performing and communicating complex financial analyses related to the Chula Vista Bayfront projects, performing market analyses for the City of Oceanside and assisting the City of Oceanside in developer selection for the Pier Resort Hotel and real estate negotiations. KMA proposes the use of sub-consultant Cummings Corporation for cost estimating.
London Moeder Advisors (LMA) - LMA is a San Diego based firm with over 26 years’ experience providing real estate advisory services such as market analysis; financial feasibility studies; litigation support and expert witness services; investment studies for acquiring or disposing of real estate; and fiscal impact, job generation and economic multiplier effect reports. LMA’s relevant experience includes working with the Otay Water District to conduct economic studies, market analysis, financial feasibility analysis, and master plan development negotiations with tenants; working with the City of San Marcos to conduct market and feasibility analysis of the Creek District, which included owned land, to determine uses, density and values and guide re-planning process; assisting the Rancho California Water District where they conducted a strategic plan analysis of a 6,600-acre site including various market studies; feasibility studies for an RFP package to prospective developers and vendors; and the City of Carlsbad to conduct a hotel market and valuation analysis and negotiated hotel long term lease and presently, as the City’s representative, is conducting a similar assignment on the retail site.
Marisolve - Marisolve, owned by Jill Morgan, has 30 years of in-depth maritime operations and business planning experience with both private industry and government agencies. Marisolve proposes to provide market analysis with a focus on maritime services, prepare written reports and recommendations, and meet with District staff to review findings as well as assist with developing new business marketing opportunities. Ms. Morgan holds an MBA from USC and a Bachelor of Science in Marine Engineering from the Maine Maritime Academy as well as a Global Logistics designation from CSU, Long Beach. Prior to becoming a consultant, she worked at the Port of Long Beach as the Manager of Maritime Services. In addition, Ms. Morgan was the leader for the successful delivery and implementation of the Port of Long Beach’s first ten-year strategic plan, which was completed and approved by the Board of Harbor Commissioners in under a year. As a consultant, relevant experience includes: Global Commercial Business Development Plan for the Port of Long Beach providing market analysis and a five-year forecast of the waterborne liquid bulk petroleum market which included identifying potential opportunities for cargo growth, site location study for barge/logistics operation in the Ports of Los Angeles and Long Beach, and port and maritime banking expansion opportunities in Southern California to identify expansion opportunities in the maritime sector for a private bank.
Maurice Robinson & Associates, LLC (MRA) - MRA, owned by Maurice Robinson, has over 40 years of experience providing real estate services to public agencies in California, specifically related to the hospitality industry. MRA has expertise in ground lease negotiations, hotel brand selection and management contract negotiation, and performing financial analyses on potential ground lease rent structures. Since 2006, MRA has been retained by the District for a dozen assignments that include performing economic and financial feasibility analysis for National City Marine Terminal, Spinnaker Hotel, Sunroad Hotel, Wyndham Bayside redevelopment; real estate negotiations for Lane Field South, Hilton Bayfront expansion and Chula Vista; developer selection for Lane Field North; expert witness services for San Diego Marriott Marquis; market research and analysis for Harbor Island timeshare and hostels; and providing findings of opinion for the District. MRA proposes the use of sub-consultant Jason Bass for data gathering and excel modeling.
Paragon Partners Ltd. (Paragon) - Paragon is a full service real estate consulting firm with nearly 25 years of experience providing real estate, asset management and related services in Southern California. Paragon proposes to partner with Cummings Corporation; Colliers International of San Diego; Hendrickson Appraisal Company, Inc. (Hendrickson); ProWest, Inc.; RSG; and HTL Hospitality Advisors, LLC (HTL) to provide appraisal, market analysis, fiscal impact analysis, as well as hotel appraisal and consulting services. Paragon outlined a clear and concise approach to their proposed services. Paragon’s extensive relevant experience includes easements, leases, licenses, utility agreements, as well as purchase and disposition agreements and has provided property management services to both the Ports of Long Beach and Los Angeles. In addition, the sub-consultants proposed by Paragon have experience providing services to the District and other public agencies. Their relevant experience includes: Hendrickson performed valuated ground leases, minimum rents, and percentage rents on 40 leasehold properties for the District and conducted property appraisals for the Los Angeles County Department of Beaches and Harbors; HTL, for the City of Garden Grove; worked on the proposed expansion of the existing Hyatt Regency Hotel; the proposed 600-room Nickelodeon resort hotel with outdoor waterpark; the proposed 603-room Great Wolf Lodge hotel with 105,000 sq. ft. indoor water park; and RSG provided economic development consulting and brokerage services to the City of Irwindale and ground lease negotiations for the City of San Carlos.
Pro Forma Advisors, LLC, (Pro Forma) - Pro Forma, founded in 2008, provides a wide range of research services in economics, finance, market analysis, and appraisals. Pro Forma’s clients include municipalities, other public agencies, public/private joint ventures, private developers, and financial institutions. Their services include market evaluations, highest and best use analyses, financial analyses, rent review analyses, appraisals, and evaluations of facility lease arrangements. Pro Forma’s experience includes conducting the most recent commercial ground lease “benchmark percentage rent” analysis for the District as well as the analysis of BPC Policy No. 355 to assist in the policy revision, numerous lease extension fee assignments, analysis of District policies regarding participation in the assignment/sale or refinancing of District leaseholds, rent review analyses, inventory and site analysis for lower cost overnight accommodation policy, and market support evaluations for District-owned properties.
Rasmuson Appraisal Services (Rasmuson) - Rasmuson, owned by Gary Rasmuson, MAI, SRA, was founded in 1984, and provides appraisal and consulting services specifically in Southern California and San Diego County. Mr. Rasmuson has been providing real estate appraisal services for over 40 years. His experience includes providing appraisals for the City of San Diego’s Real Estate Assets Department, County of San Diego’s DGS Real Estate Services Division, preparing specialized marine-related appraisals for the Cities of San Diego and Newport Beach, and over 70 appraisal assignments for the District since 1997.
Robert Charles Lesser & Co. dba RCLCO (RCLCO) - RCLCO, founded in 1967, has extensive experience in public strategies, urban real estate, community and resort, institutional advisory services, as well as strategic planning and litigation support. RCLCO provided a clear and well laid-out approach to providing market analysis and fiscal and economic analysis services to the District. Their experience includes working with The San Diego Foundation on the regional visioning for the City of San Diego, Union Station Master Planning Market Analysis for the Los Angeles County Metropolitan Transportation Authority, market and feasibility analysis for proposed co-living development in the Little Italy neighborhood of San Diego, and strategic market analysis for a potential redevelopment or repositioning of the existing mall in Westminster, California.
Glenn A. Rick Engineering & Development Company dba Rick Engineering Co. (RICK) - RICK, since its inception in 1955, has been providing planning, civil engineering, and real estate services to a multitude of public agencies and private developers throughout the San Diego region. RICK proposes a clear approach to providing real estate consulting services to the District. RICK has worked with the District on many projects, including the Chula Vista Bayfront Master Plan, H Street Extension in Chula Vista, America’s Cup Harbor, and has provided a variety of cities nationwide with market studies, development pro forma analysis, economic analysis, and economic development plans. RICK proposes the use of sub-consultant Hunter Pacific Group for cost estimating services.
Stream Realty Partners, LP (Stream) - Stream, formed in 1996, is a national, commercial real estate firm with over 750 real estate professionals. With an office located in San Diego, Stream’s commercial research division tracks commercial markets to provide real-time data for actionable intelligence, insights and analysis for asset management, acquisition, and development markets in areas such as supply characteristics, demand drivers, macroeconomic trends, and portfolio strategies. Stream provided a clear approach to providing real estate consulting services to the District. In addition, their proprietary reports are able to provide tools to help balance capital preservation and value creation, analyze evolving variables, exploit inefficiencies within the market and monitor capital market fluctuations that impact real estate valuations. Stream’s experience includes property acquisition, as well as development and re-development of properties.
The Dore Group, Inc. (Dore) - Dore, founded in 2010, performs appraisals and property valuation services exclusively for private/public uses in California as well as fair market rent studies, lease analysis, comparable port studies, and highest and best use studies with specializations in submerged land, complex valuation assignments, government agencies' fair market rent studies and valuation on improved and ground leases, as well as right-of-way and complex traditional land. Dore’s relevant experience includes analyzing percentage lease rates for all of District tidelands; fair market rent determination for rent negotiations on Pacific Maritime Services Container Terminal - Pier J, SSA Terminals Container Terminal - Pier C, and the lease for the LNG fueling station and valuation of underlying land and depreciated value of the existing improvements for the Port of Long Beach; market rent survey for the west coast terminal rents where they conducted a survey of all major ports on the west coast of North America for the Port of Vancouver; provided a market rent survey for the Port of Seattle; analyzed the fair market value and rent for cargo berths at the Port of Oakland to determine assessed value basis; valuation of percentage lease rates for Old Fisherman’s Wharf I and II boatyards, yacht club, fish processing, food and beverage, including submerged lands for the City of Monterey; valuation of tidelands for the San Diego County Regional Airport Authority; and valuation services for the US Department of the Navy.
Xpera, Inc dba Xpera Group (Xpera) - Xpera, formed in 2009, is a firm comprised of real estate and construction consultants and strategic advisors for the development industry. Xpera proposes a cross-functional team of San Diego-based professionals, each with over 25 years’ experience that is well-versed in the requirements of the local area and how the various jurisdictions function and also highly knowledgeable in the local economy, real estate and development matters, financial projections, and development cost estimating. Xpera provided a clear and concise approach to providing real estate consulting. Xpera’s experience includes working with Pacifica Properties on the Chula Vista Bayfront, providing the San Diego Port Tenants Association with lease advisory services, and representing the District in litigation as an economic damages expert.
Firms Not Recommended
The two remaining responsive firms, Cohn Reznick and Conduit Group, LLC, were not selected by the panel because they did not demonstrate that their proposed staff has substantial relevant or similar experience providing relevant real estate consulting services. More specifically, the proposed teams did not demonstrate a clear understanding of the services requested by the District and lacked an organized, clear, and concise approach to providing such services. In addition, these firms were not recommended by the selection panel for one or more of the following reasons: the proposed staff did not demonstrate that the Project Manager and/or project team have relevant or similar experience managing District or other port or similar agency projects; the firms did not demonstrate an understanding of the District’s issues and needs as identified in the RFQ; they did not identify a clear quality control process; and/or they did not propose a fair and reasonable cost.
Conclusion
The recommended firms ranked in the top 20 due to the firms’ demonstration of the most relevant staff experience, thorough and well thought-out approach, understanding of the District’s real estate projects as well as fair and reasonable cost. District staff recommends that the Board select and authorize as-needed agreements with: AECOM Technical Services Inc.; BAE Urban Economics, Inc.; Civitas, Inc.; Cushman & Wakefield Western, Inc.; Economic & Planning Systems, Inc.; HR&A Advisors, Inc.; illuminas Consulting; Jones Lang LaSalle Americas, Inc.; Keyser Marston Associates, Inc.; London Moeder Advisors; Marisolve; Maurice Robinson & Associates, LLC; Paragon Partners Ltd.; Pro Forma Advisors, LLC; Rasmuson Appraisal Services; Robert Charles Lesser & Co. dba RCLCO; Rick Engineering Co.; Stream Realty Partners, LP; The Dore Group, Inc.; and Xpera, Inc. dba Xpera Group to provide real estate consulting services for a total aggregate amount payable under the agreements not to exceed $3,100,000 for a period of three years (Attachments A thru T).
General Counsel’s Comments:
The Office of the General Counsel had reviewed the recommended District Real Estate Department consultant agreements and approves as to form and legality.
Environmental Review:
The Board direction or action, including without limitation, a resolution selecting and authorizing agreements for as-needed Real Estate consulting services, does not constitute an “approval” or a “project” under the definitions set forth in California Environmental Quality Act (CEQA) Guidelines Sections 15352 and 15378 because no direct or indirect changes to the physical environment would occur. CEQA requires that the District adequately assess the environmental impacts of projects and reasonably foreseeable activities that may result from projects prior to the approval of the same. Any project developed as a result of Board’s action or direction that requires the District or the Board’s discretionary approval resulting in a physical change to the environment will be analyzed in accordance with CEQA prior to such approval. CEQA review may result in the District, in its sole and absolute discretion, requiring implementation of mitigation measures, adopting an alternative, including without limitation, a “no project alternative” or adopting a Statement of Overriding Consideration, if required. The current Board direction in no way limits the exercise of this discretion. Therefore, no further CEQA review is required.
In addition, the proposed Board action complies with Section 81 of the Port Act which allows for the use of funds for necessary expenses of conducting the District. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
The proposed Board direction or action does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit (CDP) Regulations because they will not result in, without limitation, a physical change, change in use or increase the intensity of uses. Therefore, issuance of a Coastal Development Permit or exclusion is not required. However, development within the District requires processing under the District’s CDP Regulations. Future development, as defined in Section 30106 of the Coastal Act, will remain subject to its own independent review pursuant to the District’s certified CDP Regulations, PMP, and Chapters 3 and 8 of the Coastal Act. The Board’s direction or action in no way limits the exercise of the District’s discretion under the District’s CDP Regulations. Therefore, issuance of a CDP or exclusion is not required at this time.
Equal Opportunity Program:
Due to limited known sub opportunities, no SBE goal was established for this opportunity. Eight of the recommended firms are SBEs and two others identified SBEs as part of their team.
PREPARED BY:
Bonnie Russell
Staff Assistant I, Real Estate
Attachment(s):
Attachment A: Agreement with AECOM Technical Services, Inc.
Attachment B: Agreement with BAE Urban Economics, Inc.
Attachment C: Agreement with Civitas, Inc.
Attachment D: Agreement with Cushman & Wakefield Western, Inc.
Attachment E: Agreement with Economic & Planning Systems, Inc.
Attachment F: Agreement with HR&A Advisors, Inc.
Attachment G: Agreement with Illuminas Consulting, LLC
Attachment H: Agreement with Jones Lang LaSalle Americas, Inc.
Attachment I: Agreement with Keyser Marston Associates, Inc.
Attachment J: Agreement with London Moeder Advisors
Attachment K: Agreement with Marisolve
Attachment L: Agreement with Maurice Robinson & Associates, LLC
Attachment M: Agreement with Paragon Partners Ltd.
Attachment N: Agreement with Pro Forma Advisors, LLC
Attachment O: Agreement with Rasmuson Appraisal Services
Attachment P: Agreement with Robert Charles Lesser & Co. dba RCLCO
Attachment Q: Agreement with Glenn A. Rick Engineering & Development Company dba Rick Engineering Co.
Attachment R: Agreement with Stream Realty Partners, LP
Attachment S: Agreement with The Dore Group, Inc.
Attachment T: Agreement with Xpera, Inc. dba Xpera Group